New York Life Completes Acquisition of IndexIQ

Apr 16 2015 | 1:21am ET

New York Life Investment Management announced it has completed its acquisition of IndexIQ, the largest provider of liquid alternative exchange-traded funds (ETFs) in terms of assets under management. 

The completion of the acquisition comes at a time when the ETF market is experiencing tremendous growth and is seeing increased interest in its ability to help investors diversify their portfolios.

IndexIQ is now fully integrated into NYLIM’s family of investment boutiques as a complement to NYLIM’s current capabilities in fixed income, equities, and alternative investments. 

IndexIQ adds $1.7 billion to NYLIM’s more than $310 billion in assets under management. IndexIQ’s products will be distributed and marketed through New York Life’s industry-leading MainStay Investments platform.

“We are very pleased to welcome IndexIQ as a valuable and strategic addition to our roster of world class asset managers, a perfect complement to our MainStay fund family,” said Drew Lawton, CEO of New York Life Investment Management. “This acquisition allows us to further strengthen and diversify our investment product offerings to best serve the needs of retail and institutional investors around the world.”

IndexIQ currently offers 13 ETFs and one mutual fund, many of which were first-of-their-kind and now have five- and six-year track records, along with a full suite of separately managed accounts (SMAs), ETF model portfolios, and indexes. 

IndexIQ recently introduced two new ETFs, focused on Event-Driven and Long/Short hedge fund strategies, respectively. With these new funds, investors now have the ability to build their own diversified hedge fund replication portfolio by managing the weightings of the various strategies offered by IndexIQ. Most of the firm’s offerings aim 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 others commonly used by hedge fund managers.

“This is the ideal time for us to merge our robust ETF manufacturing capabilities and market-leading investment solutions with New York Life’s financial strength, sterling reputation and powerful distribution capabilities,” said Adam Patti, CEO and Co-Founder of IndexIQ. “We believe we are still in the early stages of growth for our products as more and more investors and their advisors use our family of ETFs to enhance portfolio construction for their clients. Having a trusted partner like New York Life's MainStay will help us reach a far broader universe of investors with an expanded range of high quality investment solutions.”

IndexIQ Indexes underlie a variety of investment products globally including ETFs, mutual funds, and institutional accounts. IndexIQ products are designed to be liquid, transparent, low cost and accessible to a broad range of investors.

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