IQ Hedge Index Family Ends July with All Six Indexes Up
Event-Driven up, continues to climb as Market Neutral lags
RYE BROOK, August 17, 2016 - IndexIQ, the leading provider of innovative investment solutions, today announced the July performance of its family of IQ Hedge™ Indexes and the updated holdings in the firm’s IQ Merger Arbitrage ETF (NYSE Arca: MNA).
All six absolute return indexes were positive for the period, led by IQ Hedge Market Event Driven Index, which was up 2.77 percent.
“We saw markets relax a little in the month, as some of the Brexit anxiety receded, and investors returned to risk assets,” said Adam Patti, Chief Executive Officer at IndexIQ. “Alternative assets continued to be attractive, as investors considered the next major wild card on the calendar – the US presidential election.”
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 July 31, 2016 were as follows:
|IQ Hedge Index||Ticker||1 Month||3 Month||YTD||1 Year||3 Year||5 Year|
|IQ Hedge Multi-Strategy Index||IQHGMS||0.93%||1.57%||3.89%||1.21%||3.73%||3.32%|
|IQ Hedge Market Neutral Index||IQHGMN||0.29%||1.46%||4.25%||2.79%||2.69%||2.46%|
|IQ Hedge Global Macro Index||IQHGMA||1.13%||1.62%||3.26%||1.59%||0.34%||-0.53%|
|IQ Hedge Event Driven Index||IQHGED||2.77%||4.27%||6.26%||4.61%||6.25%||4.13%|
|IQ Hedge Long/Short Index||IQHGLS||2.59%||2.94%||4.90%||0.08%||4.64%||4.58%|
|IQ Merger Arbitrage Index||IQMNA||0.64%||0.44%||2.43%||2.17%||4.39%||4.01%|
“GDP has continued to disappoint, even as job growth has remained strong,” said Sal Bruno, Chief Investment Officer with IndexIQ. “These conflicting currents are likely to continue to weigh on the market, and on the Federal Reserve as it considers its next move on rates.”
The latest updates to MNA’s holdings, including recent additions and deletions, can be found here:
Additions to the IQ Merger Arbitrage Index since the last rebalance
|Target Name||Acquirer Name||Target Sector||Target Country||Announce Date||Added Date|
|ARM Holdings Plc||SoftBank Group Corp.||Information Technology||United Kingdom||07/18/2016||08/03/2016|
|Joy Global, Inc.||Komatsu Ltd.||Industrials||United States||07/21/2016||08/03/2016|
|Linear Technology Corp.||Analog Devices, Inc.||Information Technology||United States||07/26/2016||08/03/2016|
|NetSuite, Inc.||Oracle Corp.||Information Technology||United States||07/28/2016||08/03/2016|
|Outerwall, Inc.||Apollo Global Management LLC||Consumer Discretionary||United States||07/25/2016||08/03/2016|
|Relypsa, Inc.||Galenica AG||Health Care||United States||07/21/2016||08/03/2016|
|SolarCity Corp.||Tesla Motors, Inc.||Utilities||United States||06/21/2016||08/03/2016|
|The WhiteWave Foods Co.||Danone SA||Consumer Staples||United States||07/07/2016||08/03/2016|
Deletions from the IQ Merger Arbitrage Index since last rebalance
|Target Name||Acquirer Name||Target Sector||Target Country||Announce Date||Added Date||Deal Result|
|Demandware, Inc.||salesforce.com, inc.||Information Technology||United States||06/01/2016||07/06/2016||Completed|
|Hatteras Financial Corp.||Annaly Capital Management, Inc.||Financials||United States||04/11/2016||05/04/2016||Completed|
|IHS, Inc.||Markit Ltd.||Energy||United States||03/21/2016||04/05/2016||Completed|
|Celator Pharmaceuticals, Inc.||Jazz Pharmaceuticals Plc||Health Care||United States||05/31/2016||06/03/2016||Completed|
|LDR Holding Corp.||Zimmer Biomet Holdings, Inc.||Health Care||United States||06/07/2016||07/06/2016||Completed|
|ExamWorks Group, Inc.||LGP Management, Inc.||Health Care||United States||04/27/2016||05/04/2016||Completed|
|Krispy Kreme Doughnuts, Inc.||JAB Holding Co. SARL||Consumer Discretionary||United States||05/09/2016||06/03/2016||Completed|
|Asciano Ltd.||Asciano Ltd. /Private Group 2/||Industrials||Australia||03/15/2016||09/03/2015||Completed|
|Tumi Holdings, Inc.||Samsonite International SA||Consumer Discretionary||United States||03/03/2016||04/05/2016||Completed|
|Daiwa House REIT Investment Corp.||Daiwa House Residential Investment Corp.||Financials||Japan||04/15/2016||05/04/2016||Completed|
|Amaya, Inc.||Amaya, Inc. /Management/||Consumer Discretionary||Canada||02/01/2016||04/05/2016||Max Age|
|Colony Capital, Inc.||Northstar Asset Management Group, Inc.||Financials||United States||05/06/2016||07/06/2016||Rules|
|Fairchild Semiconductor International, Inc.||China Resources Microelectronics Ltd.||Information Technology||United States||01/05/2016||12/03/2015||Max Age|
|FirstMerit Corp.||Huntington Bancshares, Inc.||Financials||United States||01/26/2016||02/03/2016||Max Age|
|IMS Health Holdings, Inc.||Quintiles Transnational Holdings, Inc.||Information Technology||United States||05/03/2016||06/03/2016||Rule Violation|
|KUKA AG||Midea Group Co. Ltd.||Industrials||Germany||05/18/2016||06/03/2016||Rule Violation|
|Saft Groupe SA||Total SA||Industrials||France||05/09/2016||07/06/2016||Rule Violation|
|Questar Corp.||Dominion Resources, Inc.||Utilities||United States||02/01/2016||03/03/2016||Max Age|
|Meda AB||Mylan NV||Health Care||Sweden||02/10/2016||05/04/2016||Completed|
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: 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.
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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.
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