NEW YORK--(BUSINESS WIRE)--IndexIQ, a leading provider of innovative investment solutions, is today announcing the launch of the IQ MacKay Securitized Income ETF (SECR), an actively managed fund designed to provide investors with diversified exposure to income-generating securities across a range of investment grade structured products including mortgage-backed securities, collateralized mortgage obligations, commercial mortgage-backed securities and asset-backed securities.
SECR is actively managed by Neil Moriarty, Michael DePalma and Zachary Aronson of the MacKay Shields’ Global Fixed Income Team, using an integrated top-down and bottom-up investment process which combines macroeconomic analysis with rigorous security selection seeking to deliver total return with an emphasis on current income. This team has managed structured products strategies since October 2019 and has a track record spanning multiple credit-cycles.
“Most ‘Core’ and ‘Core Plus’ fixed income strategies tend to have allocations to securitized debt closely aligned with the Bloomberg Aggregate Index. With an actively managed approach overseen by the highly experienced portfolio managers on MacKay’s Global Fixed Income Team, SECR seeks a diversified source of potential outperformance and enhanced risk-adjusted return potential,” said Neil Moriarty, Senior Managing Director, Co-Head of Global Fixed Income Team.
“Securitized debt varies greatly across collateral types and structures. MacKay’s Global Fixed Income Team leverages its broad experience to identify opportunities across the universe of structured products that offer diversification benefits, higher ratings, predictable cash flows and, in some cases, lower interest rate sensitivity. If we are in fact in a ‘higher for longer’ rate environment, an approach that underpins SECR can be a very powerful tool for income-focused investors and advisors,” continued Neil Moriarty, Senior Managing Director, Co-Head of Global Fixed Income Team.
“We are excited to bring SECR to market and to further develop the lineup of active ETFs managed by the industry-leading income experts at MacKay Shields,” added Kirk Lehneis, Chief Operating Officer of New York Life Investment Management and President of IndexIQ ETFs. “This fund and so many others in our innovative lineup align with our commitment to delivering thoughtful solutions that meet the evolving needs of investors.”
For more information on the fund and on IndexIQ’s full suite of ETF offerings, as well as insights and commentary on inflation and the current market environment, please visit our website here.
About IndexIQ
IndexIQ is a New York Life Investments' platform of exchange-traded funds (ETFs) with over a decade of offering highly differentiated and innovative solutions to retail and institutional investors. IndexIQ leverages the asset management capabilities of New York Life Investments' multi-boutique platform into its suite of offerings which include: fixed income, equities, alternatives, ESG components and specialty asset classes. For additional information on IndexIQ, visit https://www.newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.
About MacKay Shields LLC
MacKay Shields LLC (together with its subsidiaries, "MacKay")*, a New York Life Investments Company, is a global asset management firm with $143 billion in assets under management** as of March 31, 2024. We provide investors with specialty fixed income expertise across global fixed income markets including municipal bonds, structured credit, corporate credit and emerging markets debt. For decades, our dedicated teams of specialists have delivered customized solutions backed by disciplined research and a commitment to delivering long-term value for its clients. The MacKay Shields client experience provides investors direct access to senior investment professionals. MacKay maintains offices in New York City, Princeton, Los Angeles, London and Dublin. For more information, please visit www.mackayshields.com or follow us on Twitter or LinkedIn.
*MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company.
** Assets under management (AUM) as of March 31, 2024 represents assets managed by MacKay Shields LLC and its subsidiaries but excludes certain accounts and other assets over which MacKay Shields continues to exercise discretionary authority to liquidate but which are no longer actively managed.
About Risk:
All investments are subject to risk and will fluctuate in value.
Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner. High yield securities generally offer a higher current yield than the yield available from higher grade issues, but are subject to greater market fluctuations, are less liquid and provide a greater risk of loss than investment grade securities. Diversification cannot assure a profit or protect against loss in a declining market. Asset-backed securities are subject to credit risk, extension risk, interest rate risk, liquidity risk and valuation risk. The impairment of the value of collateral or other assets underlying an asset-backed security, such as a result of non-payment of loans or non-performance of underlying assets, may result in a reduction in the value of such asset-backed securities and losses to the Fund. Investments in mortgage-related securities make an investor more susceptible to adverse economic, interest rate, political or regulatory events that affect the value of real estate. Mortgage-related securities are also significantly affected by the rate of prepayments. Impairment of the underlying obligations or collateral, such as by non-payment, will reduce a mortgage-related security’s value.
Consider the Funds' investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com or calling (888) 474-7725. Read the prospectus carefully before investing.
IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs, and NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. “New York Life Investments” is both a service mark, and the common trade name, of the investment advisors affiliated with New York Life Insurance Company.
