Merger Arbitrage, Global Macro Indexes Show Strong Returns in September

Market Neutral Index is down for the period

RYE BROOK, New York, October 12, 2016 - IndexIQ, the leading provider of innovative investment solutions, today announced the September performance of its family of IQ Hedge™ Indexes and the updated holdings in the firm’s IQ Merger Arbitrage ETF (NYSE Arca: MNA).

Five of the sixes indexes were positive in the period, led by the IQ Merger Arbitrage Index, up 1.18 percent, and the IQ Hedge Global Macro Index which climbed 0.86 percent. IQ Hedge Market Neutral posted the lone negative return, declining -0.15 percent for September.

"With traders returning from summer vacations, volatility picked up, too, as markets confronted a range of economic data and the unfolding U.S. election,” said Adam Patti, Chief Executive Officer at IndexIQ. “We expect this to continue at least until after the election, and more likely to the end of the year and into 2017."

Salvatore Bruno, IndexIQ’s Chief Investment Officer, said, "The Fed continues to keep its eye on both inflation and the job market. With the Core Consumer Price Index (CPI) up a little over two percent on a trailing 12-month basis and the job market showing strength a Fed tightening by year-end remains a very real possibility."

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 September 30, 2016 were as follows:

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 September 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 0.07% 0.95% 3.90% 3.65% 3.26% 3.99%
IQ Hedge Market Neutral Index IQHGMN -0.15% 0.22% 4.18% 3.53% 2.32% 3.05%
IQ Hedge Global Macro Index IQHGMA 0.86% 2.41% 4.57% 5.30% 0.55% 1.39%
IQ Hedge Event Driven Index IQHGED 0.65% 3.74% 7.26% 9.03% 5.95% 5.81%
IQ Hedge Long/Short Index IQHGLS 0.04% 3.18% 5.51% 7.05% 4.28% 6.81%
IQ Merger Arbitrage Index IQMNA 1.18% 2.97% 4.80% 6.89% 4.79% 5.44%

“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
Agrium, Inc. Potash Corp. of Saskatchewan, Inc. Materials Canada 08/30/2016 10/05/2016
Cepheid Danaher Corp. Health Care United States 09/06/2016 10/05/2016
Chemtura Corp. LANXESS AG Materials United States 09/25/2016 10/05/2016
Columbia Pipeline Partners LP TransCanada Corp. Utilities United States 09/26/2016 10/05/2016
Infoblox, Inc. Vista Equity Partners Management LLC Information Technology United States 09/19/2016 10/05/2016
Interactive Intelligence Group, Inc. Genesys Telecommunications Laboratories, Inc. Information Technology United States 08/31/2016 10/05/2016
Intersil Corp. Renesas Electronics Corp. Information Technology United States 09/12/2016 10/05/2016
Press Ganey Holdings, Inc. EQT Partners AB Information Technology United States 08/09/2016 10/05/2016
Raptor Pharmaceutical Corp. Horizon Pharma Plc Health Care United States 09/12/2016 10/05/2016
SAI Global Ltd. Baring Private Equity Partners Group LLP Industrials Australia 09/26/2016 10/05/2016
Spectra Energy Corp. Enbridge, Inc. Energy United States 09/06/2016 10/05/2016

Deletions from the IQ Merger Arbitrage Index since last rebalance
Target
Name
Acquirer
Name
Sector Country Announce
Date
Added
Date
Deal
Result
TiVo, Inc. Rovi Corp. Consumer Discretionary United States 04/29/2016 05/04/2016 Completed
Elizabeth Arden, Inc. Revlon, Inc. Consumer Staples United States 06/16/2016 07/06/2016 Completed
Memorial Resource Development Corp. Range Resources Corp. Energy United States 05/16/2016 06/03/2016 Completed
Mattress Firm Holding Corp. Steinhoff International Holdings NV Consumer Discretionary United States 08/07/2016 09/06/2016 Completed
FEI Co. Thermo Fisher Scientific, Inc. Information Technology United States 05/27/2016 06/03/2016 Completed
InterOil Corp. Exxon Mobil Corp. Energy Canada 07/18/2016 06/03/2016 Completed
Polycom, Inc. SIRIS Capital Group LLC Information Technology United States 07/08/2016 05/04/2016 Completed
Outerwall, Inc. Apollo Global Management LLC Consumer Discretionary United States 07/25/2016 08/03/2016 Completed
Medivation, Inc. Pfizer Inc. Health Care United States 08/22/2016 05/04/2016 Completed
AVG Technologies NV AVAST Software Sro Information Technology Netherlands 07/07/2016 09/06/2016 Completed
SABMiller Plc Anheuser-Busch InBev SA Consumer Staples United Kingdom 09/16/2015 12/03/2015 Completed
Empire District Electric Co. Algonquin Power & Utilities Corp. Utilities United States 02/09/2016 04/05/2016 Max Age

 

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. 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.

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
New York Life Insurance
212-576-4517
allison_scott@newyorklife.com