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Pioneering Liquid Alternative Mutual Fund & First No-Load Hedge Fund Replication Fund (IQHIX / IQHOX) Celebrates Sixth Anniversary

June 30, 2014

Trailblazer in Fast-Growing Liquid Alts Space Continues to Offer Investors a Core Alternatives Holding

NEW YORK--(BUSINESS WIRE)-- The mutual fund that helped launch the liquid alternatives product category, IndexIQ’s IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Class; IQHOX – Investor Class), is today celebrating its sixth anniversary, according to the fund’s sponsor, IndexIQ. The Fund was the first no-load, open-end hedge fund replication mutual fund and was a trailblazer for what has become one of the fastest-growing product categories on the investment landscape, the liquid alternatives space.

“The launch of the IQ Alpha Hedge Strategy Fund was a key moment for us in the development and evolution of our firm, as well as for what was then the nascent ‘liquid alternatives’ product category,” said Adam Patti, chief executive officer at IndexIQ. “In the ensuing six years, financial advisors, retail investors, and institutions have all come to embrace liquid alternatives, and the diversification, liquidity, and other desirable characteristics that these products can add to an investment portfolio.”

Designed as a core holding for investors, the IQ Alpha Hedge Strategy Fund provides broad market exposure and is designed to solve for the structural limitations inherent in traditional hedge funds, such as their high cost, illiquidity and lack of transparency.

The Fund is designed to synthesize the risk and return profiles of a broad range of hedge fund investing strategies, seeking to deliver hedge fund-like performance in a low cost, transparent, and highly liquid investment vehicle. It follows a rules-based investment process that selects components from a wide array of exchange-traded funds that cover commodities, currencies, stocks, bonds and real estate.

A leader in liquid alternative ETFs by assets, IndexIQ has since further expanded its offerings in the space, bringing out the IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first liquid alternatives ETF, in 2009.

Its family of liquid alternative ETFs also includes IQ Hedge Market Neutral Tracker (NYSE Arca: QMN), designed to provide Market Neutral hedge fund exposure; IQ Hedge Macro Tracker ETF(NYSE Arca: MCRO), the first Global Macro/Emerging Markets hedge fund replication ETF; 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; and IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources ETF and the broadest commodity equity ETF on the market.

Other ETF offerings from IndexIQ include:

  • IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first US Real Estate Small Cap 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; and,
  • IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF.

    About IndexIQ

    IndexIQ is a leading issuer of liquid alternative investments focused on absolute return, real asset and international strategies. IndexIQ solutions are offered as ETFs, Mutual Funds, Separate Accounts and Model Portfolios. IndexIQ’s philosophy is to democratize investment management by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products.* IndexIQ strategies are marketed through the company’s proprietary investment products and select partnerships with leading global financial institutions. Additional information about the company and its products can be found at www.IndexIQ.com.

    *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.

    The IQ Alpha Hedge Strategy Fund seeks to achieve investment results that correspond to the total return, before fees and expenses, of the IQ Alpha Hedge Strategy Index. The objective of the Index is to provide superior returns and lower volatility relative to the S&P 500 Index. The Index also seeks to provide correlation that is similar to the correlation between hedge funds generally and the S&P 500 Index.

    Mutual fund investing involves risk, including the possible loss of principal. There is no guarantee that the Fund will meet its objective. The Fund is not suitable for all investors due to its use of leverage, short selling, and derivatives, or for other reasons. Funds that use leverage to seek to increase return are subject to greater risk in adverse market conditions. There are particular risks associated with funds that employ short sales, such as the fact that the potential loss from a short position theoretically is unlimited. The Fund's use of derivatives, such as swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The Fund's investment performance, because it is a fund of funds, depends on the investment performance of the underlying ETFs in which it invests. There is no guarantee that the Fund itself, or each of the ETFs in the Fund's portfolio, will perform exactly as its underlying index. An investor in the Fund will bear the operating expenses of the underlying ETFs in which the Fund invests. The Fund is non-diversified and may be susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The IQ Alpha Hedge Strategy Fund is not intended to provide a complete investment program and should be considered a speculative investment.

    Investors are reminded that ETF and all investing involves risk, including possible loss of principal. Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other information about the Funds may be obtained by visiting www.indexiq.com or by calling (888) 934-0777. Read the prospectus carefully before investing.

    IndexIQ ETFs and mutual funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS.

    IDX001511.062315




    MacMillan Communications

    Mike MacMillan/Chris Sullivan

    212-473-4442

    chris@macmillancom.com

    Source: IndexIQ


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