According to the announcement, Advisor Partners plans to use the solutions from IndexIQ Inc., developer of index and investment strategies, in offering a new family of managed account portfolios for family offices, independent advisers, and wealth managers. The strategies will include large cap growth, core and value offerings, as well as emerging markets and small cap value products.
The new managed account products will seek to combine the alpha generated by the best active managers with the benefits of indexing, such as rules-based methodologies, tax efficiency, and low costs, the announcement said. The new Separately Managed Account portfolios will be available starting in the third quarter of 2007.
“Our strategies use a proprietary construction process to provide a bridge between traditional passive investing and the potential for alpha offered by the best active managers,’ said Adam S. Patti, Chief Executive Officer of IndexIQ, in the announcement. “Because they are index-based, our products achieve this at lower cost than traditional managed accounts. We believe this combination of features will prove very attractive to Investment Advisory firms such as Advisor Partners going forward.’