Omaha- and Portland, Ore.-based FolioMetrix LLC will merge with New York-based American Independence Financial Services to form a new company, RiskX Investments LLC, the firms announced on Tuesday.
RiskX Investments, based in New York, will manage about $1.1 billion in funds and separately managed accounts, comprised of American Independence’s single-manager sub-advised funds and accounts and FolioMetrix’s multi-strategy tactical mutual funds. The merger is expected to close in 2015.
The terms of the deal were not disclosed.
John J. Pileggi, managing partner of American Independence, will become CEO of RiskX Investments.
“The decision to merge with FolioMetrix was an easy one to make,” Pileggi said. “Its team shares our dedication to continuously seeking new ways to deliver better investment outcomes during any market conditions. We are eager to join forces and deliver a wide array of risk-intelligent products to the marketplace.”
RiskX will offer advisors access to the proprietary research-driven portfolio construction tools and risk management methodologies developed by FolioMetrix.
Jerry Murphey, president and CEO of FolioMetrix, will become president of RiskX Investments.
“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,” Murphey said.
FolioMetrix was founded in 2009 as an investment management company providing data-driven research tools for advisors. The firm has also developed client engagement, workforce management and portfolio design programs for advisors and institutions. In 2013, the company launched its line of risk-intelligent RiskX Funds, which are dedicated to tactical asset management.
American Independence was founded in 2005 as an investment advisor firm. Its funds offer exposure to select sub-advisors of equity, fixed-income, international and risk-managed portfolios.