Monthly performance of firm’s IQ Hedge family of benchmark hedge fund replication indexes released today
Updated holdings in the IQ Merger Arbitrage ETF (MNA) available as well
RYE BROOK, N.Y.–(BUSINESS WIRE)–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).
“The volatility that characterized 2015 and the start of 2016 continued through the beginning of February but sentiment improved in the second half of the month”
“The volatility that characterized 2015 and the start of 2016 continued through the beginning of February but sentiment improved in the second half of the month,” said Adam Patti, CEO of IndexIQ. “Overall, our family of benchmark hedge fund replication indexes was mostly positive for the month, led by our IQ Merger Arbitrage Index, which returned 2.07 percent, while only the IQ Hedge Long/Short Index finished February in negative territory.”
Salvatore Bruno, Chief Investment Officer with IndexIQ, also noted that performance of the IQ Hedge Multi-Strategy Index, the broadest-based index in the IQ Hedge family, was ahead of the S&P 500 both during February and year-to-date through February 29th. “One of our five main themes for 2016 was our belief that many alternative strategies, including those pursued by a number of hedge funds, could become more attractive this year,” said Bruno. “Performance thus far has borne that out.”
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 February 29, 2016 were as follows:
| IQ Hedge Indexes | ||||||||||||||
| 1 Month | 3 Month | YTD | 1 Year | 3 Year | 5 Year | |||||||||
| IQ Hedge Multi-Strategy Index | IQHGMS | 0.37% | -1.75% | -0.76% | -4.27% | 2.59% | 2.88% | |||||||
| IQ Hedge Market Neutral Index | IQHGMN | 0.42% | 0.07% | 0.75% | -0.92% | 1.57% | 1.96% | |||||||
| IQ Hedge Global Macro Index | IQHGMA | 0.03% | -1.98% | -1.00% | -4.41% | -1.91% | -0.49% | |||||||
| IQ Hedge Event Driven Index | IQHGED | 0.75% | -2.51% | -1.69% | -3.29% | 3.87% | 3.08% | |||||||
| IQ Hedge Long/Short Index | IQHGLS | -0.25% | -4.09% | -3.07% | -6.93% | 2.65% | 2.69% | |||||||
| IQ Merger Arbitrage Index | IQMNA | 2.07% | 4.13% | 2.20% | 1.86% | 5.96% | 4.03% | |||||||
“M&A activity has lessened somewhat from the record setting pace of 2015, but February saw a number of new deals announced, several of which have been added to the holdings of the MNA strategy,” added Bruno.
The latest updates to MNA’s holdings, including recent additions and deletions, can be found here:
| Additions to the IQ Merger Arbitrage Index | ||||||||||
| Target | Acquirer | Target | Target | Announce | Added | |||||
| Name | Name | Sector | Country | Date | Date | |||||
| The ADT Corp. | Protection One, Inc. | Industrials | United States | 02/16/2016 | 03/03/2016 | |||||
| Alere, Inc. | Abbott Laboratories | Health Care | United States | 02/01/2016 | 03/03/2016 | |||||
| Ingram Micro, Inc. | Tianjin Tianhai Investment Co., Ltd. | Information Technology | United States | 02/17/2016 | 03/03/2016 | |||||
| ITC Holdings Corp. | Fortis, Inc. (Canada) | Utilities | United States | 02/09/2016 | 03/03/2016 | |||||
| London Stock Exchange Group Plc | Deutsche Börse AG | Financials | United Kingdom | 02/23/2016 | 03/03/2016 | |||||
| Newport Corp. | MKS Instruments, Inc. | Information Technology | United States | 02/23/2016 | 03/03/2016 | |||||
| Questar Corp. | Dominion Resources, Inc. | Utilities | United States | 02/01/2016 | 03/03/2016 | |||||
| SanDisk Corp. | Western Digital Corp. | Information Technology | United States | 10/21/2015 | 03/03/2016 | |||||
| Syngenta AG | China National Chemical Corp. | Materials | Switzerland | 02/03/2016 | 03/03/2016 | |||||
|
Deletions from the IQ Merger Arbitrage Index |
||||||||||||
| Target | Acquirer | Announce | Added | Deal | ||||||||
| Name | Name | Sector | Country | Date | Date | Result | ||||||
| Ansaldo STS SpA | Hitachi Ltd. | Industrials | Italy | 02/24/2015 | 03/04/2015 | Max Age | ||||||
| BG Group Plc | Royal Dutch Shell Plc | Energy | United Kingdom | 04/08/2015 | 05/05/2015 | Completed | ||||||
| Health Net, Inc. | Centene Corp. | Health Care | United States | 07/02/2015 | 08/05/2015 | Max Age | ||||||
| StanCorp Financial Group, Inc. | Meiji Yasuda Life Insurance Co. | Financials | United States | 07/23/2015 | 08/05/2015 | Completed | ||||||
| Solera Holdings, Inc. | Solera Holdings, Inc. /Private Group/ | Information Technology | United States | 09/13/2015 | 10/06/2015 | Completed | ||||||
| Deutsche Wohnen AG | Vonovia SE | Financials | Germany | 10/14/2015 | 11/05/2015 | Terminated | ||||||
| SolarWinds, Inc. | Silver Lake Technology Management LLC | Information Technology | United States | 10/21/2015 | 11/05/2015 | Completed | ||||||
| Northern Tier Energy LP | Western Refining, Inc. | Energy | United States | 10/26/2015 | 11/05/2015 | Min Weight | ||||||
| Diamond Foods, Inc. | Snyder’s-Lance, Inc. | Consumer Staples | United States | 10/28/2015 | 11/05/2015 | Completed | ||||||
| King Digital Entertainment Plc | Activision Blizzard, Inc. | Information Technology | United States | 11/02/2015 | 12/03/2015 | Completed | ||||||
| Constant Contact, Inc. | Endurance International Group Holdings, Inc. | Information Technology | United States | 11/02/2015 | 01/06/2016 | Completed | ||||||
| Targa Resources Partners LP | Targa Resources Corp. | Energy | United States | 11/03/2015 | 01/06/2016 | Completed | ||||||
| Plum Creek Timber Co., Inc. | Weyerhaeuser Co. | Financials | United States | 11/08/2015 | 12/03/2015 | Completed | ||||||
| Showa Shell Sekiyu KK | Idemitsu Kosan Co., Ltd. | Energy | Japan | 11/12/2015 | 02/03/2016 | Min Weight | ||||||
| Wilshire Bancorp, Inc. | BBCN Bancorp, Inc. | Financials | United States | 12/07/2015 | 01/06/2016 | Min Weight | ||||||
| Keurig Green Mountain, Inc. | Keurig Green Mountain, Inc. /Private Group/ | Consumer Staples | United States | 12/07/2015 | 01/06/2016 | Completed | ||||||
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 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, 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 IQ Hedge Multi-Strategy Plus 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.
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.
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.
Contacts
MacMillan Communications
Chris Sullivan/Mike MacMillan, 212-473-4442
[email protected]
or
New York Life Insurance
Allison Scott, 212-576-4517
[email protected]
