Four of Six IndexIQ Hedge Fund Indexes up for April

April performance of firm’s IQ Hedge family of benchmark hedge fund replication indexes released today

Updated holdings in the IQ Merger Arbitrage ETF (MNA) available as well

RYE BROOK, New York, May 18,2016 – IndexIQ, the leading provider of innovative investment solutions, today announced the performance of its family of IQ Hedge™ Indexes and the updated holdings in the firm’s IQ Merger Arbitrage ETF (NYSE Arca: MNA). Of the six absolute return indexes, four were positive and two showed negative returns for the period.

"The upturn in equity markets started to look a little tired in April as a new set of worries grabbed the attention of investors," said Salvatore Bruno, chief investment officer at IndexIQ. "The overhang of a potential British exit from the Eurozone and generally weak economic numbers were clearly of concern. Somewhat offsetting these concerns was the Federal Reserve’s continued dovish stance for U.S. interest rates. Fitting with the insight that we issued to start the year that commodities may finally find a bottom, commodity prices surged with strength seen in energy, industrial metals, precious metals and agriculture."

Designed as investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies, the IQ Hedge Indexes comprise the first family of investable benchmark indexes covering hedge fund replication/alternative beta strategies.

IQ Hedge index returns for the period ended April 30, 2016 were as follows:

IQ Hedge Indexes
    1 Month 3 Month YTD 1 Year 3 Year 5 Year
IQ Hedge Multi-Strategy Index IQHGMS 0.78% 3.45% 2.28% -1.50% 2.99% 2.91%
IQ Hedge Market Neutral Index IQHGMN 0.91% 2.41% 2.75% 1.17% 1.66% 2.09%
IQ Hedge Global Macro Index IQHGMA -0.28% 2.68% 1.62% -2.35% -1.23% -0.90%
IQ Hedge Event Driven Index IQHGED 0.38% 4.44% 1.91% -0.63% 4.38% 3.06%
IQ Hedge Long/Short Index IQHGLS 1.25% 4.87% 1.90% -2.10% 3.80% 3.18%
IQ Merger Arbitrage Index IQMNA -1.01% 1.84% 1.98% 0.25% 5.23% 3.71%

 

"In terms of merger and acquisition activity, performance was mixed across sectors. While Healthcare was sharply negative, the Materials and Energy sectors delivered positive contributions to the index,"" added Bruno.

The latest updates to MNA’s holdings, including recent additions and deletions, can be found here:

Additions to the IQ Merger Arbitrage Index

Target
Name
Acquirer
Name
Target
Sector
Target
Country
Announce
Date
Added
Date
Alliance Fiber Optic Products, Inc. Corning, Inc. Information Technology United States 04/07/2016 05/04/2016
Carmike Cinemas, Inc. AMC Entertainment Holdings, Inc. Consumer Discretionary United States 03/04/2016 05/04/2016
Cash America International, Inc. First Cash Financial Services, Inc. Financials United States 04/28/2016 05/04/2016
Cvent, Inc. Vista Equity Partners Management LLC Information Technology United States 04/18/2016 05/04/2016
Daiwa House REIT Investment Corp. Daiwa House Residential Investment Corp. Financials Japan 04/15/2016 05/04/2016
DreamWorks Animation SKG, Inc. Comcast Corp. Consumer Discretionary United States 04/28/2016 05/04/2016
ExamWorks Group, Inc. LGP Management, Inc. Health Care United States 4/27/2016 05/04/2016
Fidelity & Guaranty Life Anbang Insurance Group Co., Ltd. Financials United States 11/09/2015 05/04/2016
gategroup Holding AG Hainan Traffic Administration Holding Co., Ltd. Industrials Switzerland 04/11/2016 05/04/2016
Hatteras Financial Corp. Annaly Capital Management, Inc. Industrials Switzerland 04/11/2016 05/04/2016
Integrated Device Technology, Inc. Integrated Device Technology, Inc. /Private Group/ Information Technology United States 04/12/2016 05/04/2016
Lexmark International, Inc. Lexmark International, Inc. /Private Group/ Information Technology United States 4/19/2016 05/04/2016
Meda AB Mylan NV Health Care United States Sweden 05/04/2016
Medivation, Inc. Sanofi Health Care United States 04/28/2016 05/04/2016
Parkway Properties, Inc. Cousins Properties, Inc. Financials United States 4/29/2016 05/04/2016
Polycom, Inc. Mitel Networks Corp. Information Technology United States 04/15/2016 05/04/2016
Rouse Properties, Inc. Brookfield Asset Management, Inc. Financials United States 01/19/2016 05/04/2016
Ruckus Wireless, Inc. Brocade Communications Systems, Inc. Information Technology United States 04/04/2016 05/04/2016
St. Jude Medical, Inc. Abbott Laboratories Health Care United States 04/28/2016 05/04/2016
TiVo, Inc. Rovi Corp. Consumer Discretionary United States 04/29/2016 05/04/2016
Virgin America, Inc. Alaska Air Group, Inc. Industrials United States 04/04/2016 05/04/2016

 

Deletions from the IQ Merger Arbitrage Index

Target
Name
Acquirer
Name
Sector Country Announce
Date
Added
Date
Deal
Result
Heartland Payment Systems, Inc. Global Payments, Inc. Information Technology United States 12/15/2015 01/06/2016 Completed
The Fresh Market, Inc. Apollo Global Management LLC Consumer Staples United States 03/14/2016 04/05/2016 Completed
The ADT Corp. Protection One, Inc. Industrials United States 02/16/2016 03/03/2016 Completed
Newport Corp. MKS Instruments, Inc. Information Technology United States 02/23/2016 03/03/2016 Completed
Allergan Plc Pfizer Inc. Health Care United States 10/29/2015 12/03/2015 Terminated
Astoria Financial Corp. New York Community Bancorp, Inc. Financials United States 10/29/2015 01/06/2016 Max Age
EMC Corp. EMC Corp. /Dell Private Group/ Information Technology United States 10/12/2015 11/05/2015 Max Age
Italcementi Fabbriche Riunite Cemento SpA HeidelbergCement AG Materials Italy United States 07/28/2015 08/05/2015 Max Age
KLA-Tencor Corp. Lam Research Corp. Information Technology United States 10/21/2015 11/05/2015 Max Age
Norfolk Southern Corp. Canadian Pacific Railway Ltd. Industrials United States 11/17/2015 12/03/2015 Terminated
SanDisk Corp. Western Digital Corp. Information Technology United States 10/21/2015 03/03/2016 Max Age
Santos Ltd. Scepter Partners Energy Australia 10/22/2015 11/05/2015 Max Age
TECO Energy, Inc. Emera, Inc. Utilities United States 09/04/2015 10/06/2015 Max Age

 

The IndexIQ family of funds includes:

  • IQ Enhanced Core Bond U.S. ETF (NYSE Arca: AGGE)
  • IQ Enhanced Core Plus Bond U.S. ETF (NYSE Arca: AGGP)
  • IQ Hedge Multi-Strategy Plus Fund (IQHIX – Class I Shares; IQHOX – Class A Shares);
  • IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI);
  • IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN);
  • IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO);
  • IQ Hedge Long/Short Tracker ETF (NYSE Arca: QLS);
  • IQ Hedge Event-Driven Tracker ETF (NYSE Arca: QED);
  • IQ Merger Arbitrage ETF (NYSE Arca: MNA);
  • IQ 50 Percent Hedged FTSE International ETF (NYSE Arca: HFXI);
  • IQ 50 Percent Hedged FTSE Europe ETF (NYSE Arca: HFXE);
  • IQ 50 Percent Hedged FTSE Japan ETF (NYSE Arca: HFXJ);
  • IQ Leaders GTAA Tracker ETF (NYSE Arca: QGTA);
  • IQ Real Return ETF (NYSE Arca: CPI);
  • IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF);
  • IQ Global Resources ETF (NYSE Arca: GRES);
  • IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP);
  • IQ Global Oil Small Cap ETF (NYSE Arca: IOIL);
  • IQ Canada Small Cap ETF (NYSE Arca: CNDA); and,
  • IQ Australia Small Cap ETF (NYSE Arca: KROO)

About IndexIQ

IndexIQ is a pioneer and leading provider of innovative investment solutions focused on absolute return, real assets, and international strategies. IndexIQ’s solutions are offered as ETFs, mutual funds, separately managed accounts, and ETF model portfolios. The company's philosophy is to democratize investment management by providing all investors with cost-effective access to the types of high-quality, sophisticated investment products that typically have been reserved for institutional and ultra high-net-worth investors. IndexIQ's mission is to take indexing to the next level by combining the best attributes of both passive and active investing, and make strategies available to investors in low cost, liquid, and transparent products*. IndexIQ is an indirect, wholly-owned subsidiary of New York Life Insurance Company. Additional information about IndexIQ and its products can be found at IQetfs.com.

* The nature of IndexIQ's products allows for these potential benefits, which typically are not associated with traditional hedge funds.

ETF PERFORMANCE: The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Fund performance current to the most recent month-end is available by calling 1-888-934-0777 or by visiting IQetfs.com..

IQ Merger Arbitrage ETF (MNA) Risk Discussion: Certain of the proposed takeover transactions in which the Fund invests may be renegotiated, terminated or involve a longer time frame than originally contemplated, which may negatively impact the Fund’s returns. The Fund’s investment strategy may result in high portfolio turnover, which, in turn, may result in increased transaction costs to the Fund and lower total returns. The Fund is susceptible to foreign securities risk – since the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets, including currency transaction risk. Diversification does not eliminate the risk of experiencing investment losses. Stock prices of mid and small capitalization companies generally are more volatile than those of larger companies and also more vulnerable than those of larger capitalization companies to adverse economic developments. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than would a diversified fund. The ETF should be considered a speculative investment with a high degree of risk, does not represent a complete investment program and is not suitable for all investors.

About Risk:

IQ Enhanced Core Bond U.S. ETF (AGGE): As with all investments, there are certain risks of investing in the Fund. The Fund’s shares will change in value and you could lose money by investing in the Fund. The Fund’s investment performance, because it is a fund of funds, depends on the investment performance of the ETPs in which it invests. Funds that invest in bonds are subject to interest rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner. The principal risk of mortgage-backed securities is that the underlying debt may be prepaid ahead of schedule if interest rates fall, thereby reducing the value of the Fund’s investment. If interest rates rise, less of the debt may be prepaid, and the Fund may lose money. The value of the Fund’s investment in ETPs is based on stock market prices and the Fund could lose money due to stock market developments, the failure of an active trading market to develop, or exchange trading halts or de-listings. As a new Fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case, it may experience greater tracking error to its Underlying Index than it otherwise would at higher asset levels, or it could ultimately liquidate.

IQ Enhanced Core Plus Bond U.S. ETF (AGGP): As with all investments, there are certain risks of investing in the Fund. The Fund’s shares will change in value and you could lose money by investing in the Fund. The Fund’s investment performance, because it is a fund of funds, depends on the investment performance of the ETPs in which it invests. Funds that invest in bonds are subject to interest rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner. The principal risk of mortgage-backed securities is that the underlying debt may be prepaid ahead of schedule if interest rates fall, thereby reducing the value of the Fund’s investment. If interest rates rise, less of the debt may be prepaid, and the Fund may lose money. The value of the Fund’s investment in ETPs is based on stock market prices and the Fund could lose money due to stock market developments, the failure of an active trading market to develop, or exchange trading halts or de-listings. Securities of issuers based in countries with developing economies (emerging markets) may present market, credit, liquidity, legal, political, and other risks different from, or greater than, the risks of investing in developed foreign countries. Emerging markets are subject to greater market volatility than more developed markets. High yield securities have speculative characteristics and present a greater risk of loss than higher quality debt securities. These securities can also be subject to greater price volatility. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it may experience greater tracking error to its Underlying Index than it otherwise would at higher asset levels, or it could ultimately liquidate.

Consider the Funds’ investment objectives, risks, and charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com or calling 888-934-0777. Read the prospectus carefully before investing.

IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs and the principal underwriter of the IQ Hedge Multi-Strategy Plus Fund. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.

*IndexIQ’s ETF holdings are available daily on IndexIQ’s website. Brokerage commissions apply to ETFs. ETFs are liquid in that they are exchange-traded.

Index performance does not reflect charges and expenses associated with the Funds or brokerage commissions associated with buying and selling ETF shares. One cannot invest directly in an index.

The IQ Hedge Multi-Strategy Plus Fund (IQ Fund), the IQ Hedge Multi-Strategy Tracker ETF (IQ Multi-Strategy ETF), the IQ Hedge Market Neutral Tracker ETF (QMN ETF), the IQ Hedge Long/Short Tracker ETF (QLS ETF), the IQ Hedge Event-Driven Tracker ETF (QED ETF), and the IQ Macro Tracker ETF (IQ Macro ETF) are not hedge funds and do not invest in hedge funds. The IQ Hedge-Multi Strategy Plus Fund is a registered open-end mutual fund that invests in exchange-traded funds (ETFs) and similar securities in an attempt to replicate the performance characteristics of certain hedge fund investing styles, but with less cost, more liquidity, and greater portfolio transparency than traditional hedge funds. There can be no assurance that the Funds’ investment strategies will be successful. The investment performance of the IQ Multi-Strategy ETF, the QMN ETF, the IQ Macro ETF, the QLS ETF, the QED ETF, and the IQ Real Return ETF (collectively, the IQ ETFs), because they are funds of funds, depends on the investment performance of the underlying ETFs in which they invest. There is no guarantee that the IQ ETFs themselves, or each of the underlying ETFs in the Funds’ portfolios, will perform exactly as its underlying index. The IQ ETFs are non-diversified and susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The IQ ETFs’ underlying ETFs invest in: foreign securities, which subject them to risk of loss not typically associated with domestic markets, such as currency fluctuations and political uncertainty; commodities markets, which subject them to greater volatility than investments in traditional securities, such as stocks and bonds; and fixed income securities, which subject them to credit risk; the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt; and interest rate risk; changes in the value of a fixed-income security resulting from changes in interest rates. Leverage, including borrowing, will cause some of the IQ ETF’s underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged.

Liquid alternatives are alternative investment strategies that are available through vehicles that provide daily liquidity, such as mutual funds and ETFs.

Certain of the proposed takeover transactions in which the Fund invests may be renegotiated, terminated or involve a longer time frame than originally contemplated, which may negatively impact the Fund’s returns. The Fund’s investment strategy may result in high portfolio turnover, which, in turn, may result in increased transaction costs to the Fund and lower total returns. The Fund is susceptible to foreign securities risk – since the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets, including currency transaction risk. Diversification does not eliminate the risk of experiencing investment losses. Stock prices of mid and small capitalization companies generally are more volatile than those of larger companies and also more vulnerable than those of larger capitalization companies to adverse economic developments. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than would a diversified fund. The ETF should be considered a speculative investment with a high degree of risk, does not represent a complete investment program and is not suitable for all investors. Investors cannot invest in an index.

For additional information, please contact:

Chris Sullivan/Mike MacMillan
MacMillan Communications
(212) 473-4442
chris@macmillancom.com

Kevin Maher
New York Life Insurance
(212) 576-6955
kevin_b_maher@newyorklife.com