NEW YORK June 16, 2009– MacKay Shields LLC, a wholly-owned subsidiary of New York Life Investments¹, has signed a definitive agreement to acquire the assets of Mariner Municipal Managers LLC (M3) of Princeton New Jersey.  Upon the deal’s closing, all employees of M3 will join MacKay, forming a new municipal bond asset management division that will be led by M3 principals John Loffredo and Robert DiMella. Both will report directly to Osbert Hood, chairman and CEO of MacKay Shields. 

“Both John and I are looking forward to joining MacKay Shields and its enduring legacy of meeting the needs of institutional and retail investors. And we are very pleased because we are bringing our entire team and its continuity of investment process in launching this new venture within MacKay,” said Robert DiMella, president, Mariner Municipal Managers LLC.

“As we work our way toward a period of economic recovery, the opportunities for muni-bonds as an asset class will only become greater.  We could not have joined a better firm, at a better time, to help facilitate our group’s future growth. MacKay Shields is a perfect fit for our organization. We look forward to joining its esteemed roster of fixed-income specialists,” said John Loffredo, chairman, Mariner Municipal Managers LLC.

For over 15 years, Robert DiMella and John Loffredo have worked together in managing municipal bond portfolios.  They founded Mariner Municipal Managers LLC in 2007 upon leaving BlackRock, where they served as co-heads of BlackRock’s Municipal Portfolio Management Group, with assets under management in excess of $100 billion.

“We are extremely pleased to welcome John, Bob and the entire Mariner Municipal team to MacKay. They have an outstanding reputation in the municipal bond community and a track record of building a successful municipal asset management business at a major investment firm.   We see the acquisition as a significant opportunity to add capabilities to complement our existing fixed income business,” said Osbert Hood, chairman and CEO of MacKay Shields.

DiMella has been a municipal portfolio manager on Wall Street since 1992.  Prior to BlackRock’s merger with Merrill Lynch Investment Managers (MLIM), he served as a senior portfolio manager and managing director of MLIM’s Municipal Products Group. He was employed by Merrill Lynch from 1993-2006.

DiMella earned his Master’s degree at Rutgers University Business School and an undergraduate degree at the University of Connecticut.  He is a Chartered Financial Analyst.

Loffredo has been a municipal portfolio manager and/or municipal analyst on Wall Street since 1990.  Prior to BlackRock’s merger with MLIM, he served as chief investment officer of MLIM’s Municipal Products Group.  He was employed by Merrill Lynch from 1990-2006. Prior to Merrill Lynch, John worked for the City of Boston Treasury Department. 

Loffredo graduated with a MBA and Certificate of Public Management from Boston University and cum laude from Utah State University where he was a Harry S. Truman Scholar. He is a Chartered Financial Analyst. 

“We believe this is a strategically important asset class and are committed to bringing the resources required to ensure this division’s successful growth within our firm. I’m confident that under the skillful leadership of John and Bob, MacKay Shields Municipal Managers will exceed our expectations,” concluded Hood. 

About MacKay Shields LLC
MacKay Shields LLC manages more than $33 billion in assets as of April 30, 2009. Its clients include pension funds and other institutional investors in the US and overseas. MacKay Shields is a wholly-owned subsidiary of New York Life Investments.

Contact:
John Puccio
New York Life Investments
212-576-8172
john_puccio@nylim.com