IQ Merger Arbitrage Index Leads Four of Six IndexIQ IQ Hedge Indexes Higher in May

Latest additions and deletions to the holdings of the IQ Merger Arbitrage ETF (MNA) available as well

Run up to today’s “Brexit” vote again highlights potential role for alternatives in a volatile market

RYE BROOK, New York, June 23, 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, led by a 1.31 percent return for the IQ Merger Arbitrage Index, and two showed negative returns for the period.

"Volatility has been growing over the last couple of months, which is broadly good for hedge funds," said Adam Patti, Chief Executive Officer at IndexIQ. "There are enough uncertainties looming over the markets to keep things interesting through the summer as we can see from the drama surrounding today's Brexit vote."

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 May 31, 2016 were as follows:

IQ Hedge Indexes
    1 Month 3 Month YTD 1 Year 3 Year 5 Year
IQ Hedge Multi-Strategy Index IQHGMS -0.08% 2.98% 2.20% -1.67% 3.21% 2.96%
IQ Hedge Market Neutral Index IQHGMN 0.01% 1.99% 2.76% 1.17% 2.13% 2.05%
IQ Hedge Global Macro Index IQHGMA -0.25% 2.40% 1.37% -2.59% -0.64% -0.75%
IQ Hedge Event Driven Index IQHGED 0.55% 4.23% 2.47% -0.96% 4.93% 3.39%
IQ Hedge Long/Short Index IQHGLS 0.72% 5.88% 2.63% -1.99% 4.15% 3.70%
IQ Merger Arbitrage Index IQMNA 1.31% 1.09% 3.31% 1.17% 5.05% 4.09%

 

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
Anacor Pharmaceuticals, Inc. Pfizer Inc. Health Care United States 05/14/2016 06/03/2016
Celator Pharmaceuticals, Inc. Jazz Pharmaceuticals Plc Health Care United States 05/31/2016 06/03/2016
FEI Co. Thermo Fisher Scientific, Inc. Information Technology United States 05/27/2016 06/03/2016
IMS Health Holdings, Inc. Quintiles Transnational Holdings, Inc. Information Technology United States 05/03/2016 06/03/2016
inContact, Inc. NICE Systems Ltd. Industrials United States 05/18/2016 06/03/2016
InterOil Corp. Oil Search Ltd. Energy Canada 05/19/2016 06/03/2016
Krispy Kreme Doughnuts, Inc. JAB Holding Co. SARL Consumer Discretionary United States 05/09/2016 06/03/2016
KUKA AG Midea Group Co. Ltd. Industrials Germany 05/18/2016 06/03/2016
Marketo, Inc. Vista Equity Partners Management LLC Information Technology United States 05/31/2016 06/03/2016
Memorial Resource Development Corp. Range Resources Corp. Energy United States 05/16/2016 06/03/2016
Monsanto Co. Bayer AG Materials United States 05/18/2016 06/03/2016
Technip SA FMC Technologies, Inc. Energy France 05/19/2016 06/03/2016
Westar Energy, Inc. Great Plains Energy, Inc. Utilities United States 05/31/2016 06/03/2016
XenoPort, Inc. Arbor Pharmaceuticals LLC Health Care United States 05/23/2016 06/03/2016
Xura, Inc. SIRIS Capital Group LLC Information Technology United States 05/23/2016 06/03/2016

 

Deletions from the IQ Merger Arbitrage Index

Target
Name
Acquirer
Name
Sector Country Announce
Date
Added
Date
Deal
Result
Airgas, Inc. Air Liquide SA Materials United States 11/17/2015 12/03/2015 Completed
Ruckus Wireless, Inc. Brocade Communications Systems, Inc. Information Technology United States 04/04/2016 05/04/2016 Completed
Baxalta, Inc. Shire Plc Health Care United States 08/04/2015 09/03/2015 Completed
Progressive Waste Solutions Ltd. Waste Connections, Inc. Industrials Canada 01/19/2016 02/03/2016 Completed
Fidelity & Guaranty Life Anbang Insurance Group Co., Ltd. Financials United States 11/09/2015 05/04/2016 Max Age
Piedmont Natural Gas Co., Inc. Duke Energy Corp. Utilities United States 10/26/2015 11/05/2015 Max Age
Terex Corp. Zoomlion Heavy Industry Science & Technology Co. Ltd. Industrials United States 01/26/2016 09/03/2015 Terminated

 

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, international and fixed income 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.

For more ETF market insights, click here

* 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:

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. Alternative investment/strategies are speculative, not suitable for all clients, an intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Investors cannot invest in an index.

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.

For additional information, please contact:

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

Allison Scott / Kevin Maher
New York Life Insurance
(212) 576-4517
allison_scott@newyorklife.com