Fortigent, a provider of outsourced wealth management, has selected IndexIQ’s IQ Hedge Multi-Strategy SMA Portfolio as an alternative investment solution for the firm’s Access Overlay customisable UMA programme.
 
Approximately 90 firms use Fortigent to support their investment research, performance reporting, Unified Managed Account (UMA), and alternative investment needs, and the firm has more than $50 billion in assets on the platform. IndexIQ is an issuer of index-based liquid alternative solutions offered as ETFs, mutual funds and separate accounts.

“We are thrilled with Fortigent’s selection of IndexIQ’s IQ Hedge Multi-Strategy SMA to be one of the alternative investment SMA solutions in Fortigent’s fast-growing UMA program,” said Adam Patti, IndexIQ’s CEO. “Our fundamental value proposition is to offer financial advisors and investors a transparent, liquid, low cost set of alternative investment products and, particularly within the context of today’s very uncertain economic and market conditions, that value proposition is resonating.”

IndexIQ report that they have outperformed the broad equity markets and the global hedge fund universe with less volatility. As of August 31 IndexIQ exhibited year to date returns of -0.61% with 3.94% standard deviation. This is compared to S&P 500 who had -1.77% returns with 20.99% standard deviation.

“While August was certainly a bumpy ride for investors and advisors, it provided yet another legitimate ‘real world’ test for our hedge fund replication strategies,” continued Patti. “We believe they delivered exactly as they were designed. By using our hedged products, or absolute return vehicles, investors may be able to dampen volatility, thus allowing them to maintain a consistent strategy of portfolio diversification.”