IndexIQ Announces June 2015 M&A Deal Holdings in IQ Merger Arbitrage ETF (Ticker: MNA)

IndexIQ, a leading developer of index-based alternative 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 is rapidly increasing.

MNA has more than five years of live performance, having launched on November 17, 2009, while its underlying index, the IQ Merger Arbitrage Index, has more than seven years of live performance, having launched on October 31, 2007.

MNA was designed to provide capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer, a strategy generally known as “merger arbitrage.” This strategy generally seeks to take advantage of the price differential, where it exists, between the current trading price of a stock and the price of that stock at the time the deal is completed.

As of June 3, 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
TargetAcquirerTargetTargetAnnounceAdded
NameNameSectorCountryDateDate
ANN, Inc. Ascena Retail Group, Inc. Consumer Discretionary United States 05/18/2015 06/03/2015
AOL, Inc. Verizon Communications, Inc. Information Technology United States 05/12/2015 06/03/2015
Broadcom Corp. Avago Technologies Ltd. Information Technology United States 05/28/2015 06/03/2015
Delhaize Group SA Royal Ahold NV Consumer Staples Belgium 05/12/2015 06/03/2015
GrafTech International Ltd. Brookfield Asset Management, Inc. Materials United States 04/29/2015 06/03/2015
Omnicare, Inc. CVS Health Corp. Health Care United States 05/21/2015 06/03/2015
Pall Corp. Danaher Corp. Industrials United States 05/13/2015 06/03/2015
Rosetta Resources, Inc. Noble Energy, Inc. Energy United States 05/11/2015 06/03/2015
Synageva BioPharma Corp. Alexion Pharmaceuticals, Inc. Health Care United States 05/06/2015 06/03/2015
Syngenta AG Monsanto Co. Materials Switzerland 05/08/2015 06/03/2015
Time Warner Cable, Inc. Charter Communications, Inc. Consumer Discretionary United States 05/26/2015 06/03/2015
M&A Deals Removed From the MNA ETF
TargetAcquirerAnnounceAddedDeal
NameNameSectorCountryDateDateResult
Aruba Networks, Inc. Hewlett-Packard Co. Information Technology United States 03/02/2015 04/06/2015 Completed
Auspex Pharmaceuticals, Inc. Teva Pharmaceutical Industries Ltd. Health Care United States 03/30/2015 04/06/2015 Completed
Dresser-Rand Group, Inc. Siemens AG Energy United States 09/21/2014 10/03/2014 Max Age
Emulex Corp. Avago Technologies Ltd. Information Technology United States 02/25/2015 04/06/2015 Completed
Exelis, Inc. Harris Corp. Industrials United States 02/06/2015 03/04/2015 Completed
Hyperion Therapeutics, Inc. Horizon Pharma Plc Health Care United States 03/30/2015 04/06/2015 Completed
Interxion Holding NV Telecity Group Plc Information Technology United States 02/11/2015 03/04/2015 Terminated
Kofax Ltd. Lexmark International, Inc. Consumer Discretionary United States 03/24/2015 04/06/2015 Completed
Novion Property Group Federation Centres Financials Australia 02/03/2015 03/04/2015 Completed
Pharmacyclics, Inc. AbbVie, Inc. Health Care United States 03/05/2015 04/06/2015 Completed
Susquehanna Bancshares, Inc. BB&T Corp. Financials United States 11/12/2014 12/03/2014 Max Age
Toll Holdings Ltd. Japan Post Holdings Co. Ltd. Industrials Australia 02/18/2015 03/04/2015 Completed
UIL Holdings Corp. Iberdrola SA Utilities United States 02/26/2015 03/04/2015 Scenario 6

“Historically, investors have not had broad access to capitalize on mergers and acquisitions activity in an ETF,” said Adam Patti, chief executive officer at IndexIQ. “The Merger Arbitrage ETF is a hedged strategy designed to take advantage of price disparities that exist in merger activity and strengthen investor portfolios by buying below the target price and realizing the capital appreciation if the deal closes at or above the target price. As such a strategy had not historically been accessible in an ETF before the launch of MNA more than four years ago, we are very excited about providing investors with this liquid, transparent, low cost, and easily tradable product.”

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 be quite lucrative for investors, 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 rapid increase in 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.

IndexIQ indexes underlie a variety of investment products, including ETFs, mutual funds, and institutional accounts. IndexIQ products are designed to be liquid, transparent, low cost,* and accessible to a broad range of investors, many of which are the first of their kind to be introduced to the market, including:

  • IQ Hedge Multi-Strategy Plus Fund (IQHIX – Institutional Share Class; IQHOX – Investor Share Class), the first open-end, no-load hedge fund replication mutual fund;
  • IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first US-listed hedge fund replication Exchange-Traded Fund;
  • IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN) providing exposure to the market neutral hedge fund universe;
  • IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro/Emerging Markets hedge fund replication ETF;
  • IQ Hedge Long/Short Tracker ETF (NYSE Arca: QLS), seeking investment results that correspond to the collective hedge funds pursuing a long/short strategy;
  • IQ Hedge Event-Driven Tracker ETF (NYSE Arca: QED), seeking investment results that correspond to the collective hedge funds pursuing an event driven strategy;
  • IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF;
  • IQ Real Return ETF (NYSE Arca: CPI), the first US-listed “real return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
  • IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first US Real Estate Small Cap ETF;
  • IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources ETF;
  • IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP), the first agribusiness small cap ETF;
  • IQ Global Oil Small Cap ETF (NYSE Arca: IOIL), the first global oil small cap ETF;
  • IQ Canada Small Cap ETF (NYSE Arca: CNDA), the first Canada small cap ETF;
  • IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF.

About IndexIQ

IndexIQ is a leading developer of index-based alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by active managers. The company’s philosophy is to democratize alternative investments by making our strategies available to investors in low cost, liquid and transparent products.* A pioneer in hedge fund replication, IndexIQ offers ETFs, SMAs and a Mutual Fund that seek to replicate hedge fund performance characteristics.

*Ordinary brokerage commissions apply. IndexIQ’s ETF holdings are available daily on IndexIQ’s web site. ETFs are liquid in that they are exchange traded.

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.

The IQ Alpha Hedge Strategy 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 Alpha Hedge Strategy 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. The QMN ETF is new and has limited operating history.

Contacts:

New York Life Insurance Company
Allison Scott, 212-576-4517
allison_scott@newyorklife.com
or
MacMillan Communications
Chris Sullivan, 212-473-4442
chris@macmillancom.com

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