Fidelity Makes Room for a Hedge-Fund Imitator on its Platform
Reported by Armie Margaret Lee
IndexIQ'sAlpha Hedge Strategy Fund, a no-load mutual fund
that aims to deliver hedge-fund like performance, has gained a spot on Fidelity's platform.
Rye Brook, New York-based IndexIQ launched the fund in July of last year. The fund's Investor Class shares come with an expense ratio of 164 basis points while Institutional Class shares sport a
115-bps expense ratio.
Company Press Release
NEW YORK--(BUSINESS WIRE)--The IQ ALPHA Hedge Strategy Fund has been added to the Fidelity Investments mutual fund platform, it was announced today.
The IQ ALPHA Hedge Strategy Fund is the first no-load, open-end mutual fund to bring hedge fund-style investing to retail investors. It seeks to deliver hedge fund-like performance with lower costs, higher transparency and increased liquidity for shareholders. The no-transaction fee Investor Class Fund is available through Fidelity Investments with a minimum required investment for first-time shareholders of $2,500. The Institutional Class Fund is available with a minimum aggregated investment of $250,000.
"The extraordinary market volatility investors have experienced serves to highlight the positive role alternative asset classes can play in providing portfolio diversification," said Adam Patti, chief executive officer at IndexIQ. "Our goal is to make these strategies available to Registered Investment Advisors and retail investors through products that are transparent and cost-efficient. The addition of the IQ ALPHA Hedge Strategy Fund to the Fidelity Investments platform is a significant step forward in reaching this broader market."
IndexIQ also recently launched the first-ever U.S. listed hedge fund replication exchange-traded fund (ETF). The IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI) seeks broad hedge fund returns with low volatility and low correlation to equity markets, providing a liquid, transparent, low cost,* hedge fund alternative. The ETF, one of many Alternative Investment ETFs IndexIQ plans to launch, seeks to replicate, before fees and expenses, the returns of the IQ Hedge Multi-Strategy Index. The Index is designed to capture the risk-adjusted return characteristics of the collective hedge fund universe using multiple hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, and emerging markets.
The Funds are not suitable for some investors; see below for important information about the Funds’ investment strategies, risks, and expenses.
About IndexIQ
Based in Rye Brook, New York, IndexIQ is the leading developer of index-based alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by the best active managers. The company’s philosophy is to democratize investment management by making institutional class investment strategies available to all investors in low cost, liquid, transparent and tax-efficient 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.
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