Agency Ibbotson, a new marketing arm of Ibbotson Associates, has been hired by Rydex Investments to market the fund firm's alternative index funds, Ibbotson reported on Wednesday.

The campaign will be targeted to Rydex's advisor community and their clients, and will be largely educational, said Rich Kendrick, marketing director at Rydex.

Kendrick expects the first product, a white paper, to be released to advisors in mid-June. A high-level presentation for investment consultants' use will be rolled out afterwards, followed by materials targeted to the retail market during the late summer or fall.

What's driving the educational campaign? The fund firm aims to educate advisors and investors about how to use their alternative index funds within an asset allocation mix. Kendrick cited market volatility and worried investors as the reason why focus has returned to absolute return and non-correlating strategies.

Rydex generally produces most of its marketing materials in-house, said Kendrick. The fund firm chose to hire Agency Ibbotson because the marketing unit had worked on a smaller educational campaign for Rydex's Juno fund last year successfully, added Kendrick.

The Agency Ibbotson unit, started last summer, grew out of what was formerly the firm's presentation materials department, said Ed Lopez, the new unit's head. Ibbotson realized there was a "customized need…especially as investment products grow more complicated," continued Lopez.

Six people work full-time for the marketing unit, although members from Ibbotson's other divisions contribute research and other work to Agency Ibbotson. The six have backgrounds ranging from former brokers to working at marketing departments within mutual funds, said Lopez.

Lopez added that the group may be looking for a writer to fill out the team. 

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