Mainstay Funds is planning a marketing and hiring push, according to the American Banker
. The trade paper reports that fund unit of New York Life Investment Management will be adding to its distribution staff and upping its marketing and new product launches to take advantage of weakness at competitors in wake of the fund scandals and flat stock market.
The paper based its report on an interview with Chris Blunt, executive vice president of retail investments, who joined the insurer two months ago. Blunt told it that Mainstay is hoping to double its assets from its current base of $16 billion over the next three to five years.
"The opportunity to grow the mutual fund and managed account business is greater now than it has been in five years due to the regulatory environment," he is quoted as saying.
"Some of the large players are playing defense, and the smaller players are deciding that they need to get out of the business. Firms have to still offer these products, and they have to find someone to partner with. New York Life Investment Management is taking a long view on this. … While a lot of people see declining margins and regulatory issues, we see opportunity," he explained.
Mainstay added three wholesalers last week and expects to hire another two or three over the next few months. It may also continue to hire after that.
"Advisers are more hungry than ever for sales ideas, marketing support, and true value-added wholesalers," he said.
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