New York Life Unit Acquires Investment Management Firm
December 5, 2014 by Arthur D. Postal
WASHINGTON – New York Life’s investment management subsidiary is expanding into the exchange-traded fund (ETF) industry.
New York Life Investment Management (NYLIM) said it has acquired IndexIQ, the leader in the liquid alternative ETF industry.
The acquisition “brings NYLIM’s powerful global asset management franchise and distribution platform together with IndexIQ’s proven ability to launch sophisticated alternative ETF products,” said Drew Lawton, NYLIM’s CEO.
“Our entry into the ETF space is a significant leap forward for New York Life Investment Management and offers remarkable opportunities all around,” Lawton continued. “Retail and institutional investors are increasingly attracted to ETFs because they offer a cost-effective, transparent way to access investment opportunities across asset classes around the globe.”
He said IndexIQ has established itself “as a true innovator and market leader offering the next generation of liquid alternative ETFs, and we intend to leverage IndexIQ’s capabilities to become the dominant provider of non-traditional ETF solutions to the market.”
IndexIQ will partner with NYLIM’s MainStay distribution network to deliver its products “to a significantly broader audience of retail and institutional investors around the world,” Lawton said.
Among its 12 fund offerings, IndexIQ has established a dominant market leadership position with its IQ Hedge Multi-Strategy Tracker ETF. This ETF, with nearly six years of live track record, aims to replicate the risk-adjusted return characteristics of hedge funds using strategies that include long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, emerging markets and other strategies commonly used by hedge fund managers. IndexIQ also offers a mutual fund version of QAI and is a leading “ETF strategist” offering ETF models and separately-managed accounts.
“This is a win for IndexIQ, for New York Life, and for investors who need smart solutions to achieve a diverse investment portfolio,” said Adam Patti, CEO and co-founder of IndexIQ.
IndexIQ has received its primary financial backing from FTV Capital, led by Ben Cukier, and James Fields, president at Klingenstein, Fields & Co., both of whom are on its board.
MainStay had more than $101 billion in assets under management as of Oct. 31 across retail mutual funds and variable product sub-accounts. It is the mutual fund distribution arm of New York Life.
MainStay provides financial advisors with access to a mix of autonomous, institutional investment managers.
