IndexIQ today announced the launch of its newest ETF, the IQ MacKay Multi-Sector Income ETF (MMSB ). The fund, which is sub-advised by MacKay Shields LLC, seeks to provide investors with attractive current income and long-term capital appreciation.
MMSB is an actively managed fixed income strategy that will seek to achieve its investment objective by allocating across an array of domestic and international fixed income segments, including investment- and non-investment-grade securities.
Stephen Cianci and Neil Moriarty, co-heads of the MacKay Shields global fixed income team, will be lead portfolio managers for MMSB. As they manage the fund, they will leverage MacKay’s specialized fixed income teams:
- Core Fixed Income, led by Cianci, Moriarty, and Lesya Paisley,
- U.S. High Yield, Loans, and Emerging Markets Debt, led by Eric Gold,
- Taxable Municipals, led by Scott Sprauer and Sanjit Gill, and
- Convertibles, led by Edward Silverstein.
“Our investment philosophy focuses on diversified sources of alpha potential, where it is critical to not rely on only one or two levers to seek alpha, but rather have the ability to uncover value across sectors,” said Cianci in a news release. “We believe fixed income valuations are meaningfully more attractive and current yields have greatly improved the income profiles for investors.”
Cianci added: “While investors have endured unprecedented drawdowns from the bond markets in 2022, in our view this is a compelling entry point for long term investors as we see more opportunities through active management.”
Ian Forrest, head of IndexIQ, added: “We are thrilled to be building on our existing partnership with MacKay Shields with the launch of this new multi-sector approach to the fixed income market. During uncertain times in the bond market, and the ongoing demand for actively managed strategies to combat this resulting volatility, it’s particularly important to provide our clients with a broad spectrum of portfolio solutions that they can use as a core allocation in any market environment.”
The fund serves to expand IndexIQ’s solutions-driven actively managed fixed income lineup with MacKay, which includes the IQ MacKay Municipal Insured ETF (MMIN ), the IQ MacKay Municipal Intermediate ETF (MMIT ), the IQ MacKay California Municipal Intermediate ETF (MMCA ), and the IQ MacKay ESG Core Plus Bond ETF (ESGB ).
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