RYE BROOK, N.Y., Oct. 18, 2017 /PRNewswire/ -- IndexIQ, a leading
provider of innovative investment solutions, today announced the
launch of the IQ MacKay Shields Municipal Intermediate ETF (MMIT)
and the IQ MacKay Shields Municipal Insured ETF (MMIN), the latest
additions to the firm's fast-growing suite of fixed income ETF
offerings.
Both funds are actively managed by subadvisor MacKay Municipal
Managers™ of MacKay Shields LLC, an award-winning investment team
led by co-CIOs John Loffredo and Robert
DiMella who collectively have over 50 years of investment
experience and have managed municipal strategies together for over
20 years. They are supported by an experienced investment team that
provides expertise across all facets of the municipal market.
MMIT seeks current income exempt from federal income tax. The
Fund seeks to achieve its objective by investing primarily in
investment grade municipal bonds and will also seek to enhance
total return potential through the subadvisor's active management
approach. MMIN seeks current income exempt from federal income
tax.
MMIN principally invests in investment-grade municipal bonds
covered by an insurance policy guaranteeing the payment of
principal and interest, and will also seek to enhance total return
potential through the subadvisor's active management approach.
MMIT and MMIN join a growing family of fixed income ETF
offerings from IndexIQ, including three first-of-their-kind
factor-based fixed income offerings: the IQ Enhanced Core Bond U.S.
ETF (NYSE Arca: AGGE) and IQ Enhanced Core Plus Bond U.S. ETF (NYSE
Arca: AGGP), which were launched in May of 2016, and the IQ S&P
High Yield Low Volatility Bond ETF (HYLV), the first high yield low
volatility fixed income ETF, which launched in February of
2017.
MacKay Municipal Managers™ Portfolio Manager David Dowden said:
"A number of major changes have taken place in the municipal
bond category in recent years, introducing new risks and
inefficiencies. The benefits of active management in the municipal
bond arena are clear when one looks at the dizzying array of credit
types available, the substantial number of new issuances entering
the market each year, and the dramatically different liquidity
environment to be found in the space now. Much of the alpha to be
generated in municipal bonds is based on market access and a strong
understanding of supply and demand dynamics; all of which we strive
to deliver to clients."
Salvatore Bruno, Chief
Investment Officer with IndexIQ said:
"These products allow us to bring the municipal bond expertise
of MacKay Shields, a fellow New York
Life Investment Management boutique, to investors through an
innovative, cost-effective ETF chassis. We expect that these new
products will allow more investors to gain the benefits of exposure
to this complex, yet important, sector of the bond market."
About IndexIQ
IndexIQ is a pioneer and leading provider of innovative
investment solutions focused on absolute return, real assets,
international and fixed income 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.
For additional
information about IndexIQ, please contact:
|
|
|
Allison
Scott
|
Chris Sullivan/Mike
MacMillan
|
New York Life
Insurance
|
MacMillan
Communications
|
(212)
576-4517
|
(212)
473-4442
|
allison_scott@newyorklife.com
|
chris@macmillancom.com
|
About Risk:
MMIN:
The Fund may be susceptible to an
increased risk of loss, including losses due to adverse events that
affect the Fund's investments more than the market as a whole, to
the extent that the Fund's investments are concentrated in the
securities of a particular issuer or issuers, region, market,
industry, group of industries, project types, group of project
types, sector or asset class. Municipal Bond risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers, and the possibility of future
tax and legislative changes, which could affect the market for and
value of municipal securities.
The Fund is a new fund. As a new
fund, there can be no assurance that it will grow to or maintain an
economically viable size, in which case it could ultimately
liquidate. Fixed income securities most frequently trade in
institutional round lot size transactions. Until the Fund grows
significantly in size, the Fund expects to purchase a significant
number of bonds in amounts less than the institutional round lot
size, which are frequently referred to as "odd" lots. Odd lot size
positions may have more price volatility than institutional round
lot size positions.
A portion of the Fund's income may
be subject to state and local taxes or the alternative minimum tax.
Funds that invest in bonds are subject to interest-rate risk and
can lose principal value when interest rates rise. Bonds are also
subject to credit risk, in which the bond issuer may fail to pay
interest and principal in a timely manner. Municipal bond risks
include the ability of the issuer to repay the obligation, the
relative lack of information about certain issuers, and the
possibility of future tax and legislative changes, which could
affect the market for and value of municipal securities.
MMIT:
The Fund may be susceptible to an
increased risk of loss, including losses due to adverse events that
affect the Fund's investments more than the market as a whole, to
the extent that the Fund's investments are concentrated in the
securities of a particular issuer or issuers, region, market,
industry, group of industries, project types, group of project
types, sector or asset class. Municipal Bond risks include the
ability of the issuer to repay the obligation, the relative lack of
information about certain issuers, and the possibility of future
tax and legislative changes, which could affect the market for and
value of municipal securities.
The Fund is a new fund. As a new
fund, there can be no assurance that it will grow to or maintain an
economically viable size, in which case it could ultimately
liquidate. Fixed income securities most frequently trade in
institutional round lot size transactions. Until the Fund grows
significantly in size, the Fund expects to purchase a significant
number of bonds in amounts less than the institutional round lot
size, which are frequently referred to as "odd" lots. Odd lot size
positions may have more price volatility than institutional round
lot size positions.
A portion of the Fund's income may
be subject to state and local taxes or the alternative minimum tax.
Funds that invest in bonds are subject to interest-rate risk and
can lose principal value when interest rates rise. Bonds are also
subject to credit risk, in which the bond issuer may fail to pay
interest and principal in a timely manner. Municipal bond risks
include the ability of the issuer to repay the obligation, the
relative lack of information about certain issuers, and the
possibility of future tax and legislative changes, which could
affect the market for and value of municipal securities.
Market conditions or changes to
ratings criteria could adversely impact the ratings of municipal
bond insurance companies. A rating downgrade of a municipal
bond insurer could negatively impact the market value of insured
municipal bonds held by the Fund. If the insurer of a defaulted
municipal bond were to become unable or unwilling to pay the
principal or interest on the defaulted Municipal Bond, the Fund
would incur losses.
Consider the Fund's investment objectives, risks, charges and
expenses carefully before investing. The prospectus and the
statement of additional information includes this and other
relevant information about the Fund and are available by visiting
IQetfs.com or calling 888-474-7725. 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 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc.
is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors
LLC is a Member FINRA/SIPC.
Fund shares are not individually redeemable and will be issued
and redeemed at their NAV only through certain authorized
broker-dealers in large, specified blocks of shares called
"creation units", and otherwise, can be bought and sold only
through exchange trading. Creation units are issued and redeemed
principally in-kind.
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SOURCE IndexIQ