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
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:
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IQ Hedge Indexes |
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1 Month |
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3 Month |
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YTD |
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1 Year |
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3 Year |
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5 Year |
IQ Hedge Multi-Strategy Index |
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IQHGMS |
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-0.08% |
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2.98% |
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2.20% |
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-1.67% |
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3.21% |
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2.96% |
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IQ Hedge Market Neutral Index |
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IQHGMN |
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0.01% |
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1.99% |
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2.76% |
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1.17% |
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2.13% |
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2.05% |
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IQ Hedge Global Macro Index |
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IQHGMA |
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-0.25% |
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2.40% |
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1.37% |
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-2.59% |
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-0.64% |
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-0.75% |
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IQ Hedge Event Driven Index |
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IQHGED |
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0.55% |
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4.23% |
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2.47% |
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-0.96% |
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4.93% |
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3.39% |
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IQ Hedge Long/Short Index |
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IQHGLS |
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0.72% |
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5.88% |
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2.63% |
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-1.99% |
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4.15% |
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3.70% |
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IQ Merger Arbitrage Index |
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IQMNA |
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1.31% |
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1.09% |
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3.31% |
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1.17% |
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5.05% |
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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 |
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Target |
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Acquirer |
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Target |
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Target |
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Announce |
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Added |
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Name |
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Name |
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Sector |
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Country |
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Date |
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Date |
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Anacor Pharmaceuticals, Inc. |
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Pfizer Inc. |
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Health Care |
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United States |
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05/14/2016 |
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06/03/2016 |
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Celator Pharmaceuticals, Inc. |
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Jazz Pharmaceuticals Plc |
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Health Care |
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United States |
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05/31/2016 |
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06/03/2016 |
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FEI Co. |
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Thermo Fisher Scientific, Inc. |
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Information Technology |
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United States |
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05/27/2016 |
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06/03/2016 |
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IMS Health Holdings, Inc. |
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Quintiles Transnational Holdings, Inc. |
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Information Technology |
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United States |
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05/03/2016 |
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06/03/2016 |
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inContact, Inc. |
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NICE Systems Ltd. |
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Industrials |
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United States |
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05/18/2016 |
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06/03/2016 |
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InterOil Corp. |
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Oil Search Ltd. |
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Energy |
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Canada |
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05/19/2016 |
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06/03/2016 |
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Krispy Kreme Doughnuts, Inc. |
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JAB Holding Co. SARL |
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Consumer Discretionary |
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United States |
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05/09/2016 |
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06/03/2016 |
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KUKA AG |
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Midea Group Co. Ltd. |
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Industrials |
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Germany |
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05/18/2016 |
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06/03/2016 |
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Marketo, Inc. |
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Vista Equity Partners Management LLC |
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Information Technology |
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United States |
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05/31/2016 |
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06/03/2016 |
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Memorial Resource Development Corp. |
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Range Resources Corp. |
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Energy |
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United States |
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05/16/2016 |
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06/03/2016 |
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Monsanto Co. |
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Bayer AG |
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Materials |
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United States |
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05/18/2016 |
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06/03/2016 |
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Technip SA |
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FMC Technologies, Inc. |
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Energy |
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France |
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05/19/2016 |
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06/03/2016 |
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Westar Energy, Inc. |
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Great Plains Energy, Inc. |
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Utilities |
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United States |
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05/31/2016 |
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06/03/2016 |
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XenoPort, Inc. |
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Arbor Pharmaceuticals LLC |
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Health Care |
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United States |
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05/23/2016 |
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06/03/2016 |
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Xura, Inc. |
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SIRIS Capital Group LLC |
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Information Technology |
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United States |
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05/23/2016 |
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06/03/2016 |
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Deletions from the IQ Merger Arbitrage Index since last rebalance |
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Target |
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Acquirer |
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Announce |
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Added |
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Deal |
Name |
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Name |
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Sector |
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Country |
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Date |
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Date |
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Result |
Airgas, Inc. |
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Air Liquide SA |
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Materials |
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United States |
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11/17/2015 |
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12/03/2015 |
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Completed |
Ruckus Wireless, Inc. |
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Brocade Communications Systems, Inc. |
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Information Technology |
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United States |
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04/04/2016 |
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05/04/2016 |
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Completed |
Baxalta, Inc. |
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Shire Plc |
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Health Care |
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United States |
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08/04/2015 |
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09/03/2015 |
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Completed |
Progressive Waste Solutions Ltd. |
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Waste Connections, Inc. |
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Industrials |
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Canada |
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01/19/2016 |
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02/03/2016 |
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Completed |
Fidelity & Guaranty Life |
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Anbang Insurance Group Co., Ltd. |
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Financials |
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United States |
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11/09/2015 |
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05/04/2016 |
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Max Age |
Piedmont Natural Gas Co., Inc. |
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Duke Energy Corp. |
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Utilities |
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United States |
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10/26/2015 |
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11/05/2015 |
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Max Age |
Terex Corp. |
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Zoomlion Heavy Industry Science & Technology Co. Ltd. |
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Industrials |
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United States |
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01/26/2016 |
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09/03/2015 |
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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 www.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:
MacMillan Communications
Chris Sullivan/Mike MacMillan
212-473-4442
chris@macmillancom.com
or
New York Life Insurance
Allison Scott / Kevin Maher
212-576-4517
allison_scott@newyorklife.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20160623006133/en/