RYE BROOK, N.Y.–(BUSINESS WIRE)–IndexIQ a pioneer and leading provider of innovative investment solutions, today announced the mergers and acquisitions (M&A) deals to which investors can gain exposure in the IQ Merger Arbitrage ETF (Ticker: MNA). MNA was the industry’s first exchange-traded fund (ETF) to give investors exposure to global corporate M&A activity, which has been rapidly increasing.
As of January 6, 2015, the deals that were added to and removed from the IQ Merger Arbitrage ETF are as follows:
M&A Deals Added to the MNA ETF
|Astoria Financial Corp.||New York Community Bancorp, Inc.||Financials||United States||10/29/2015||01/06/2016|
|Constant Contact, Inc.||Endurance International Group Holdings, Inc.||Information Technology||United States||11/02/2015||01/06/2016|
|E.I. du Pont de Nemours & Co.||The Dow Chemical Co.||Materials||United States||12/11/2015||01/06/2016|
|Heartland Payment Systems, Inc.||Global Payments, Inc.||Information Technology||United States||12/15/2015||01/06/2016|
|Jarden Corp.||Newell Rubbermaid, Inc.||Consumer Discretionary||United States||12/14/2015||01/06/2016|
|Keurig Green Mountain, Inc.||Keurig Green Mountain, Inc. /Private Group/||Consumer Staples||United States||12/07/2015||01/06/2016|
|MedAssets, Inc.||Pamplona Capital Management LLP||Health Care||United States||11/02/2015||01/06/2016|
|Meredith Corp.||Media General, Inc.||Consumer Discretionary||United States||09/08/2015||01/06/2016|
|Targa Resources Partners LP||Targa Resources Corp.||Energy||United States||11/03/2015||01/06/2016|
|UTi Worldwide, Inc.||DSV A/S||Industrials||United States||10/09/2015||01/06/2016|
|Wilshire Bancorp, Inc.||BBCN Bancorp, Inc.||Financials||United States||12/07/2015||01/06/2016|
M&A Deals Removed from the MNA ETF
|Cytec Industries, Inc.||Solvay SA||Materials||United States||07/29/2015||08/05/2015||Completed|
|Strategic Hotels & Resorts, Inc.||The Blackstone Group LP||Financials||United States||09/08/2015||10/06/2015||Completed|
|HomeAway, Inc.||Expedia, Inc.||Consumer Discretionary||United States||11/04/2015||12/03/2015||Completed|
|ZS Pharma, Inc.||AstraZeneca Plc||Health Care||United States||11/06/2015||10/06/2015||Completed|
|Altera Corp.||Intel Corp.||Information Technology||United States||06/01/2015||07/07/2015||Completed|
|The Chubb Corp.||ACE Limited||Financials||United States||07/01/2015||08/05/2015||Max Age|
|Cigna Corp.||Anthem, Inc.||Health Care||United States||06/20/2015||07/07/2015||Max Age|
|Humana, Inc.||Aetna, Inc.||Health Care||United States||07/03/2015||08/05/2015||Max Age|
|Oil Search Ltd.||Woodside Petroleum Ltd.||Energy||Australia||09/07/2015||10/06/2015||Terminated|
Merger Arbitrage funds typically have the potential to benefit from buying target companies below the target price. The “spread” in price, the difference between the target price and market price, can provide investors opportunity for gains, especially if there are competitive bids for a company. Given today’s relatively low corporate valuations and the significant amount of cash on corporate balance sheets, industry experts forecast a sustained high level of M&A activity.
The IQ Merger Arbitrage ETF seeks to track, before fees and expenses, the performance of the IQ Merger Arbitrage Index. The Index seeks to achieve capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. This approach is based on a passive strategy of owning certain announced takeover targets with the goal of generating returns that are representative of global merger arbitrage activity. The Index also includes short exposure to global equities as a partial equity market hedge.
The IndexIQ family of funds includes:
- 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 Leaders GTAA Tracker ETF (NYSE Arca: QGTA);
- 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 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).
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.
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 mutual fund. NYLIFE Distributors LLC is located at 169 Lackawanna Ave, Parsippany, NJ 07054. 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.
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.
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.