FolioMetrix is to merge with American Independence Financial Services, LLC (AIF) to create a new company, RiskX Investments, LLC, offering an array of risk-intelligent investment solutions.
The transaction is expected to close in September 2015. Terms of the deal have not been disclosed.
RiskX Investments will manage, post-merger, approximately USD1.1 billion in funds and separately managed accounts, comprised of the American Independence Funds (single-manager sub-advised funds and separately managed accounts) and the FolioMetrix Rx Fund Series (multi-strategy tactical mutual funds).
American Independence Funds offer exposure to select sub-advisors of equity, fixed income, international, and risked-managed portfolios. The AIF management team averages over 25 years of experience building and distributing investment solutions to the financial industry.
"The decision to merge with FolioMetrix was an easy one to make. Its team shares our dedication to continuously seeking new ways to deliver better investment outcomes during any market conditions," says John J Pileggi, Managing Partner of American Independence, who will become CEO of RiskX Investments. "We are eager to join forces and deliver a wide array of risk-intelligent products to the marketplace as partners in RiskX Investments."
FolioMetrix is the creator of a proprietary research platform that mixes strategies from carefully selected portfolio managers with different tactical overlays for portfolio diversification in up and down markets. The firm also provides a suite of client engagement, workflow management, and portfolio design and construction programs for advisors and institutions.
"Joining forces with American Independence provides us with the leadership and distribution expertise needed for advisors to access our extensive research, covering the full spectrum of active risk management within a diverse line of investment products," says Jerry Murphey, President and CEO of FolioMetrix, who will become President of RiskX Investments.
Grail Partners LLC, through a fund invested with an undisclosed partner, has provided funds to both companies and initiated the merger. "Today, financial markets change faster than do investor expectations, so investors need tactical risk management as well as traditional asset allocation," says Donald H Putnam, Managing Partner of Grail Partners. "RiskX Investments will combine two great firms to promote active risk management of all types for all clients. We will help the RiskX Investments team pursue organic growth and strategic partnerships."
