NEOS Investments to Join Goldman Sachs Asset Management — Transcript

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1. 0:08Welcome to the Neos Monthly Income
2. 0:09podcast. I'm Tom Lyden, and as always,
3. 0:12I'm joined by the co-founders of Neos,
4. 0:14Garret Palella and Troy Kates. Also
5. 0:17joining us is Brian Lake, partner at
6. 0:19Goldman Sachs Asset Management.
7. 0:22Garret, I'm handing it over to you.
8. 0:23You've got some exciting news.
9. 0:25>> Yeah, thanks, Tom. Um we're extremely
10. 0:27thrilled and excited about the
11. 0:29opportunity today to be announcing that
12. 0:31Neos has joined into an agreement uh to
13. 0:34join Goldman Sachs Asset Management um
14. 0:36in a partnership that we really believe
15. 0:39uh is going to benefit our firm, our
16. 0:41team, and most importantly, uh our
17. 0:43investors. I think the decision from our
18. 0:45perspective to join with Goldman really
19. 0:47presents a unique opportunity
20. 0:50uh to where we can build off of what has
21. 0:52made Neos who we are today, right? And
22. 0:55what everybody knows us for. That means
23. 0:56our team, our disciplined investment
24. 0:58philosophy, and just a commitment to
25. 1:00delivering exceptional outcomes for
26. 1:02investors. What's also exciting about
27. 1:04this is that in Goldman, we found a very
28. 1:07supportive partner. They share in our
29. 1:09investor-first passion and the ability
30. 1:11to bring global size and scale and
31. 1:13resources to help us expand the business
32. 1:15that we are today and
33. 1:18uh and continue to innovate in products
34. 1:20for investors.
35. 1:22>> Thanks, Garret. Brian, can you share
36. 1:24what this means for Goldman Sachs and
37. 1:26why joining with Neos makes sense for
38. 1:29you?
39. 1:30>> Yeah, first Tom, let me say we're just
40. 1:32so thrilled for Neos to be joining
41. 1:34Goldman Sachs Asset Management. I think
42. 1:37Garret said it great. The fact that
43. 1:39their client-focused aligns completely
44. 1:41with how Goldman Sachs thinks about its
45. 1:43clients. Our focus at Goldman Sachs
46. 1:45Asset Management is helping clients meet
47. 1:47their specific investment goals, and
48. 1:49Neos fits that mission.
49. 1:52Neos will continue building behind its
50. 1:54team, its disciplined approach, and
51. 1:57while we Goldman bring our broader
52. 1:59platform access, distribution, and
53. 2:01technology advantages to the table.
54. 2:03From a Goldman perspective, we pride
55. 2:05ourselves on solving our problems for
56. 2:06our clients, and that's the mantra we
57. 2:08live by. Together with Neos, we aim to
58. 2:10make these solutions available to more
59. 2:12investors and advisors across more
60. 2:14channels and geographies.
61. 2:16>> It's great to hear there's such an
62. 2:18investment alignment between the two
63. 2:19companies. Troy, can you give a bit more
64. 2:22color on why Neos is pursuing this
65. 2:25opportunity now? What makes the timing
66. 2:28right?
67. 2:29>> Yeah, it's a great question, Tom. You
68. 2:31know, we've talked about this before and
69. 2:33you know, it's clear that right now the
70. 2:35demand for income-oriented solutions is
71. 2:38continuing to grow. Together with
72. 2:41Goldman, we're going to be focused on
73. 2:42accelerating the solutions that have
74. 2:44made Neos a leader in the income ETFs
75. 2:46and a trusted resource to investors.
76. 2:49Partnering with Goldman will enable Neos
77. 2:51to invest more aggressively in product
78. 2:53innovation without compromising the
79. 2:55principles that have defined us from the
80. 2:56beginning.
81. 2:57So, there are a few things we want to
82. 2:59make sure that we're being clear about.
83. 3:01First off, and very important, nothing
84. 3:03changes about our investment philosophy.
85. 3:05The same team will continue to manage
86. 3:07the ETFs our investors have come to know
87. 3:10and rely on. Secondly, our funds will
88. 3:12continue to trade as normal under the
89. 3:15same ticker, so nothing changes there
90. 3:17when people start to think about what
91. 3:18this transaction might mean to them.
92. 3:20Together with Goldman, we'll continue to
93. 3:22give investors the confidence and
94. 3:24solutions to navigate and benefit from
95. 3:26every market environment.
96. 3:27>> Garrett, I'm a shareholder. What should
97. 3:30I expect? What do I need to do?
98. 3:32>> Yeah, listen, there is a lot of work
99. 3:34that we're going to do before our
100. 3:35companies come together.
101. 3:37If you're a current shareholder, you'll
102. 3:39be receiving proxy materials with
103. 3:41details and instructions and asking for
104. 3:44your approval. We ask that you please
105. 3:46review those materials carefully, but
106. 3:48other than that, there's no action
107. 3:50that's required today on your part.
108. 3:53We've always prided ourselves at Neos at
109. 3:55being focused on transparency, active
110. 3:57engagement with our investors, and that
111. 3:59will continue to remain true throughout
112. 4:01this entire process and beyond.
113. 4:04>> Brian, you've been in the ETF business
114. 4:05for a long time.
115. 4:07Goldman and Neos joining forces is a big
116. 4:09deal. Put in perspective for us.
117. 4:13>> I mean, you're right, Tom. I have been
118. 4:14around a bit. So so have you. I think
119. 4:16that's something that we all love about
120. 4:18this industry. One thing that we've seen
121. 4:20is active ETFs continue to be an area
122. 4:23that can provide solutions for
123. 4:25investors. Income ETFs continue to be an
124. 4:28attractive category for investors. The
125. 4:31Neos capabilities combined with the
126. 4:33Goldman Sachs platform is really
127. 4:35exciting. We are investing in our direct
128. 4:37indexing capabilities. We are investing
129. 4:39in our alternatives capabilities. And we
130. 4:41are investing in our active ETF
131. 4:43capabilities to bring the Neos
132. 4:45capabilities in with their derivative
133. 4:47income solutions combined with the
134. 4:49innovator solutions of defined outcome
135. 4:52ETFs positions us to really serve our
136. 4:55clients in a very exciting way. The
137. 4:57future is very bright and we're very
138. 4:59excited to take this forward.
139. 5:01>> Troy, what should investors take away
140. 5:04from this announcement?
141. 5:06>> Listen, Tom. I mean, this is exciting.
142. 5:08Um we're going to be able to take the
143. 5:09best of Neos and offer more to
144. 5:11shareholders. Um yeah, to the
145. 5:13shareholders that are listening, we're
146. 5:15truly grateful for your trust and
147. 5:17excited for what we could do next for
148. 5:18you. Um we're excited to keep delivering
149. 5:21ETF solutions with even more support
150. 5:23behind us with the Goldman team. We'll
151. 5:25continue to share updates as Garrett
152. 5:27mentioned as we move forward including
153. 5:29here on the podcast. Um and we will
154. 5:31continue to be available to have those
155. 5:33calls to talk to you advisors and and
156. 5:35continue the communication. But listen,
157. 5:37thank you for tuning in. This is a very
158. 5:39exciting time.
159. 5:40>> Well, gentlemen, thank you and
160. 5:42congratulations. We're all looking
161. 5:44forward to seeing what you and your
162. 5:46collective team can continue to build
163. 5:48together.
164. 5:49>> Thanks, Tom.
165. 5:50>> Thank you.
166. 5:50>> Thanks, Tom.
167. 6:06>> [music]
168. 6:21[music]