IndexIQ Announces February 2014 M&A Deal Holdings in IQ Merger Arbitrage ETF

indexiqIndexIQ, 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.



“Historically, investors have not had broad access to capitalize on mergers and acquisitions activity in an ETF”



MNA has more than four years of live performance, having launched on November 17, 2009, while its underlying index, the IQ Merger Arbitrage Index, has more than six 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 February 5, 2014, the deals that were added to and removed from the IQ Merger Arbitrage ETF are as follows:

M&A Deals Added to MNA ETF

Target

Acquirer

Target

Target

Announce

Added

Name

Name

Sector

Country

Date

Date

American Pacific Corporation

H.I.G. Capital Management, Inc.

Basic Materials

United States

01/10/2014

02/05/2014

Beam Inc.

Kotobuki Realty Co., Ltd.

Consumer Staples

United States

01/13/2014

02/05/2014

CEC Entertainment, Inc.

Apollo Global Management LLC

Consumer Staples

United States

01/16/2014

02/05/2014

F&C Asset Management plc

Bank of Montreal

Financials

United Kingdom

01/27/2014

02/05/2014

Foster Wheeler AG

AMEC Plc

Capital Goods

United States

01/13/2014

02/05/2014

Osisko Mining Corporation

Goldcorp, Inc.

Basic Materials

Canada

01/13/2014

02/05/2014

Pacer International, Inc.

XPO Logistics, Inc.

Transportation

United States

01/06/2014

02/05/2014

Rautaruukki Oyj

SSAB AB

Basic Materials

Finland

01/22/2014

02/05/2014

Riverbed Technology, Inc.

Elliott Capital Advisors LP

Technology

United States

01/08/2014

02/05/2014

Texas Industries, Inc.

Martin Marietta Materials, Inc.

Basic Materials

United States

01/28/2014

02/05/2014

Ziggo NV

Liberty Global Plc

Communication Services

Netherlands

01/27/2014

02/05/2014

M&A Deals Removed From MNA ETF

Target

Acquirer

Announce

Added

Removed

Name

Name

Sector

Country

Date

Date

Date

Invensys plc

Schneider Electric SA

Technology

United Kingdom

07/12/2013

08/05/2013

02/05/2014

Coastal Energy Co.

International Petroleum Investment Co.

Energy

Cayman Islands

11/19/2013

12/04/2013

02/05/2014

Cole Real Estate Investments, Inc.

American Realty Capital Properties

Financials

United States

10/23/2013

11/05/2013

02/05/2014

Solta Medical, Inc.

Valeant Pharmaceuticals International

Health Care

United States

12/16/2013

01/06/2014

02/05/2014

ViroPharma Incorporated

Shire Plc

Health Care

United States

11/11/2013

12/04/2013

02/05/2014

Health Management Associates

Community Health Systems, Inc.

Health Care

United States

07/30/2013

08/05/2013

02/05/2014

Harris Teeter Supermarkets Inc

The Kroger Co.

Consumer Staples

United States

07/09/2013

08/05/2013

02/05/2014

Costa Inc. Class A

Essilor International SA

Consumer Cyclicals

United States

11/08/2013

01/06/2014

02/05/2014

Blyth, Inc.

CVSL, Inc.

Consumer Staples

United States

10/29/2013

11/05/2013

02/05/2014

BRE Properties, Inc. Class A

Essex Property Trust, Inc.

Financials

United States

12/09/2013

01/06/2014

02/05/2014

CapitalSource Inc.

PacWest Bancorp

Financials

United States

07/22/2013

08/05/2013

02/05/2014

Celesio AG

McKesson Corp.

Health Care

Germany

10/24/2013

11/05/2013

02/05/2014

Home Federal Bancorp, Inc.

Banner Corp.

Financials

United States

09/24/2013

10/03/2013

02/05/2014

Leap Wireless International, Inc.

AT&T, Inc.

Communication Services

United States

07/12/2013

08/05/2013

02/05/2014

Life Technologies Corporation

Thermo Fisher Scientific, Inc.

Health Care

United States

04/15/2013

05/03/2013

02/05/2014

Omnicom Group Inc

Publicis Groupe SA

Consumer Cyclicals

United States

07/28/2013

08/05/2013

02/05/2014

Valassis Communications, Inc.

M&F Worldwide Corp.

Consumer Cyclicals

United States

12/18/2013

01/06/2014

02/05/2014

Warrnambool Cheese and Butter Factory

Murray Goulburn Co-operative Co.

Consumer Staples

Australia

10/18/2013

12/04/2013

02/05/2014

“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.



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