New Life Investments is an investment management company under New York Life Insurance Company, one of the largest and oldest mutual life insurance companies in the United States. With over $600 billion assets under management, New Life Investments provides a wide range of investment products and solutions to institutional and retail investors. This article analyzes New Life Investments’ investment philosophies, major business areas, portfolio compositions and historical performance.
Investment philosophy focused on long-term asset appreciation
As a subsidiary of New York Life Insurance Company which serves over 10 million policyholders, New Life Investments inherits the parent company’s emphasis on long-term investing. Its investment objective is not to pursue short-term profits, but stable returns that can stand the test of time and market cycles. As a result, New Life Investments allocates assets across diverse securities including stocks, bonds and alternatives to balance risks and returns.
Diversified business lines generating stable revenues
New Life Investments operates three major business lines catering to different investor needs – annuities and direct investments, asset management as well as insurance. The annuities unit invests policyholder contributions into income-generating assets to fund future payouts. Asset management segment offers investment solutions to institutional clients and retail investors. The insurance line also delivers steady fee income through underwriting and reinsurance activities.
Portfolios tilted towards index funds
Within its asset management arm, New Life Investments runs both index and actively managed strategies. As of 2017, index funds took up 74% of its assets under management despite accounting for only 65% of investment products. This indicates a preference for low-cost index tracking strategies. On a category basis, equity and fixed income allocations were roughly equal.
Long-term competitive investment returns
As an insurance asset manager, New Life Investments emphasizes capital preservation and long-term positive returns. Annuities and pension portfolios held up well during market downturns like the 2008 financial crisis. Its investment performance also stands out – according to a 2019 survey by investment consultant NEPC, New Life Investments’ 10-year net returns ranked among the top 25% of its peer set.
In summary, New Life Investments operates with a long investment horizon and through diversified business lines. It leans towards index-based strategies within its asset management arm. The long-term focused approach has translated into competitive historical returns over market cycles.