The investment seeks to achieve positive absolute returns over the long-term regardless of market conditions.
The fund primarily invests, under normal market conditions, in equity securities of U.S. and foreign issuers. Equity securities include common stock and preferred stock. It seeks to purchase securities of companies that are involved in corporate reorganizations, such as publicly announced mergers, takeovers, tender offers, debt restructurings, minority purchases, leveraged buyouts, spin-offs, and liquidations. The fund is non-diversified.
The investment seeks investment results that correspond generally to the price and yield performance of its underlying index, the IQ Merger Arbitrage Index.
The fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the investments included in its underlying index. The underlying index seeks to employ a systematic investment process designed to identify opportunities in companies whose equity securities trade in developed markets, including the U.S., and which are involved in announced mergers, acquisitions and other buyout-related transactions. The fund is non-diversified.