MainStay Investments hired Epoch Investment Partners to subadvise four MainStay mutual funds and two variable annuity products offered by MainStay sponsor New York Life Investment Management, confirmed Adam Borak, CFO of Epoch parent Epoch Holding. The six account for about $1.1 billion total.
The mutual funds Epoch will subadvise are the $380 million MainStay Total Return fund; the $208 million MainStay Small Company Value fund; the $184 million MainStay All-Cap Growth fund; and the $82 million MainStay Small Cap Growth fund. The variable annuity products are the MainStay VP Total Return portfolio and the MainStay VP Developing Growth portfolio, Mr. Borak said.
According to an SEC filing today, Epoch will replace Lord Abbett as subadviser of the VP Developing Growth portfolio. A Lord Abbett spokeswoman would not comment. For the other five offerings, Epoch will replace MacKay Shields, a NYLIM subsidiary primarily known as a fixed-income manager.
NYLIM spokesman John Puccio said MacKay Shields is exiting the management of domestic equities — which accounted for $3.1 billion of that firm's $37.7 billion in assets under management as of May 31 — to focus more on its fixed-income offerings.
MainStay also terminated MacKay Shields as subadviser to its $139 million MainStay Mid Cap Value fund and its $149 million MainStay Mid Cap Growth fund. Madison Square Investors, another NYLIM subsidiary, will become subadviser for both funds.
Meanwhile, another NYLIM subsidiary, Institutional Capital, will replace MacKay Shields as subadviser of the $325 million MainStay Value fund.
MacKay Shields was hired to subadvise the $192 million MainStay Tax Free Bond fund, replacing Standish Mellon Asset Management. A Standish Mellon spokesman declined comment.
Shareholder approval is required for the Epoch subadvisory appointments.