Fortigent, LLC, a leading provider of outsourced wealth management solutions for financial advisors and institutions targeting high net worth clients, has selected IndexIQ’s IQ Hedge Multi-Strategy SMA Portfolio as an Alternative Investment solution for the firm’s Access Overlay TM customizable UMA program, it was announced today. Fortigent’s selection of the IQ Hedge Multi-Strategy SMA represents the latest global financial platform to offer IndexIQ’s flagship hedge fund replication strategies. Approximately 90 firms use Fortigent to support their investment research, performance reporting, Unified Managed Account (UMA), and alternative investment needs, and the firm has more than $50 billion in assets on the platform. “We are thrilled with Fortigent’s selection of IndexIQ’s IQ Hedge Multi-Strategy SMA to be one of the alternative investment SMA solutions in Fortigent’s fast-growing UMA program,” said Adam Patti, IndexIQ’s CEO. “Our fundamental value proposition is to offer financial advisors and investors a transparent, liquid, low cost set of alternative investment products and, particularly within the context of today’s very uncertain economic and market conditions, that value proposition is resonating.” Scott Welch, Co-Founder and Senior Managing Director of Investment Research & Strategy at Fortigent, added: “We are excited to include IndexIQ’s IQ Hedge Multi-Strategy SMA in our Access Overlay™ customizable UMA program. This portfolio is the first alternative investment strategy offered in an SMA format selected to be included in our UMA program. In this low return, highly volatile market, we believe advisors may benefit if they can offer alternative investment portfolios that are easy to understand, easy to implement, and easy to rebalance. One of Fortigent’s core service offerings is to support advisors in employing effective and innovative alternative investments as they build and manage globally diversified portfolios – and we believe IndexIQ’s IQ Hedge solution should be considered by our clients navigating the still-nascent but rapidly growing liquid alternative investment space.”
As the global markets experienced one of their most volatile months in recent memory in August, the IQ Hedge Multi-Strategy SMA is one of several investment solutions from IndexIQ to outperform the broad equity markets and the global hedge fund universe with less volatility.The following table showing the performance of the IQ Hedge SMA as of August 31st is illustrative, particularly as compared to the performance of the S&P 500, which exhibited month-to-date returns of -5.43% (with 46.78% standard deviation) and year-to-date returns of -1.77% (with 20.99% standard deviation):
|IQ Hedge Multi-Strategy SMA|
About IndexIQIndexIQ is a leading issuer of index-based liquid alternative solutions focused on absolute return, real assets and international strategies. IndexIQ solutions are offered as ETFs, Mutual Funds & Separate Accounts. 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. About Fortigent Fortigent, LLC delivers a fully integrated and customizable business-to-business outsourced wealth management solution to banks, trust companies, and independent advisory firms. Services include a comprehensive investment platform with particular expertise in alternative investments, a flexible unified managed account program, and consolidated wealth reporting. Fortigent's web-based portal interface allows access to proposal and rebalancing tools, client portfolio reporting and accounting, as well as industry articles, research papers, and other practice management and business development resources. For more information, visit www.fortigent.com. Investors are reminded that all investing involves risk, including possible loss of principal. Consider the investment objectives, risks, charges and expenses carefully before investing. Additional information may be obtained by visiting www.indexiq.com or by calling (888) 934-0777. The investment performance of the SMA, because it is a portfolio of funds, depends on the investment performance of the underlying ETFs in which it invests. The 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. The SMA is available via the Fortigent and other intermediary platforms and not to the public.
IQ Hedge Multi-Strategy SMA (the “Composite”) contains all discretionary accounts managed by IndexIQ that employ individual assets in the strategy and utilize the investment methodology. The Composite sets a minimum account value of $100,000 at measurement period close for inclusion. However, once an account is included, it cannot be removed from the Composite universe until the period closing asset value falls below $90,000. Leverage is not used in the Composite. Composite results are United States dollar-based, measured both externally and internally. Returns are based upon trade date accounting, and include the reinvestment of dividends and interest. Results for the full historical period are time weighted. Actual results of each account may be materially different from results of the Composite as a result of many factors, including without limitation differences in transaction and related costs, the inception dates of the accounts, varying cash flows, and differences in the investment objectives and guidelines.©2011 IndexIQ. All rights reserved. Any unauthorized use, disclosure, copying, dissemination, or redistribution of this information is strictly prohibited. IQA000102.092312