Index firm picks Market Street for MSA processing

FWR Staff

3 June 2009

IndexIQ wanted robust and flexible back-office support for new SMA program. Indexed-investment maker IndexIQ has turned to Market Street Advisors to provide middle- and back-office technology and services for its separately managed account (SMA) program. Market Street Advisors will deliver a web-based platform that integrates portfolio accounting, order management, daily time-weighted performance measurement, real-time reconciliation services and comprehensive reporting.

"Given the market interest in IndexIQ's separately managed account offerings, we sought a back-office solution that is robust and flexible to meet the demands of this growing business," says IndexIQ's CEO Adam Patti. "We look forward to working with Market Street Advisors as we continue to grow our business to meet our clients' objectives."

Risk adjusted

Late last year, Rye Brook, N.Y.-based IndexIQ launched a set of SMAs featuring publicly traded ETFs subjected to the firm's rules-based methodology.

IndexIQ's decision to outsource its SMA processing gives them the ability to keep pace with demand and to accommodate innovation, according to Market Street Advisors' CEO Bevin Crodian.

"Our system's flexibility coupled with our team's expertise will help IndexIQ continue to develop new products for the separately managed account business," says Crodian.

IndexIQ developes index-based alternative-investment products that combine the benefits of traditional index investing with the risk-adjusted return potential.

Edison, N.J.-based Market Street Advisors processes about 25,000 accounts. It has approximately $5 billion in assets under. -FWR

Purchase reproduction rights to this article.