IndexIQ Launches New IQ MacKay Multi-Sector Income ETF (MMSB) in Ongoing Partnership with MacKay Shields

BY Business Wire | MUNICIPAL | 07/26/22 09:15 AM EDT

MMSB builds upon IndexIQ?s actively managed fixed income suite, pulling from MacKay Shields? broad fixed income expertise across multiple sectors

NEW YORK--(BUSINESS WIRE)-- IndexIQ today announced the launch of its newest ETF, the IQ MacKay Multi-Sector Income ETF (MMSB) , sub-advised by MacKay Shields LLC, which seeks to provide investors with attractive current income and long-term capital appreciation.

MMSB is an actively managed fixed income strategy that will seek to achieve its investment objective by allocating across an array of domestic and international fixed income segments, including investment and non-investment grade securities. MMSB lead portfolio managers, Stephen Cianci and Neil Moriarty, co-heads of the MacKay Shields Global Fixed Income (?GFI?) team will leverage the depth and breadth of MacKay?s specialized fixed income teams as they manage the fund:

  • Core Fixed Income led by Stephen Cianci, Neil Moriarty, and Lesya Paisley
  • U.S. High Yield, Loans, and Emerging Markets Debt led by Eric Gold
  • Taxable Municipals led by Scott Sprauer and Sanjit Gill and
  • Convertibles lead by Edward Silverstein

Steve Cianci, CFA, Co-Head of MacKay Shields Global Fixed Income Team and Portfolio Manager for MMSB, commented:

?Our investment philosophy focuses on diversified sources of alpha potential, where it is critical to not rely on only one or two levers to seek alpha, but rather have the ability to uncover value across sectors. We believe fixed income valuations are meaningfully more attractive and current yields have greatly improved the income profiles for investors. While investors have endured unprecedented drawdowns from the bond markets in 2022, in our view this is a compelling entry point for long term investors as we see more opportunities through active management.?

Ian Forrest, Head of IndexIQ, added:

?We are thrilled to be building on our existing partnership with MacKay Shields with the launch of this new multi-sector approach to the fixed income market. During uncertain times in the bond market, and the ongoing demand for actively managed strategies to combat this resulting volatility, it?s particularly important to provide our clients with a broad spectrum of portfolio solutions that they can use as a core allocation in any market environment.?

The Fund serves to expand IndexIQ?s solutions-driven actively managed fixed income lineup with MacKay, which includes the IQ MacKay Municipal Insured ETF (MMIN) , the IQ MacKay Municipal Intermediate ETF (MMIT) , the IQ MacKay California Municipal Intermediate ETF (MMCA) and the IQ MacKay ESG Core Plus Bond ETF (ESGB) .

For more information on the fund and on IndexIQ?s full suite of ETF offerings, as well as insights and commentary on inflation and the current market environment, please visit our website here. To read the Global Fixed Income team?s mid-year outlook on the fixed income market, visit the insights page here.

About IndexIQ

IndexIQ, a New York Life Investments company, is a provider of exchange-traded funds (ETFs), with a decade of offering highly differentiated and innovative solutions to retail and institutional investors. With $5.1 billion in assets under management as of December 31, 2021, IndexIQ leverages the asset management capabilities of New York Life Investments' multi-boutique platform into its suite of offerings which include: fixed income, equities, alternatives, ESG components and specialty asset classes. For additional information on IndexIQ, visit https://www.newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.

About MacKay Shields LLC

MacKay Shields LLC (together with its subsidiaries, "MacKay")*, a New York Life Investments Company, is a global asset management firm with $152 billion in assets under management as of March 31, 2022. MacKay manages fixed income and equity strategies for high-net worth individuals and institutional clients, through separately managed accounts and collective investment vehicles including private funds, UCITS, ETFs, closed end funds and mutual funds. MacKay maintains offices in New York City, Princeton, Los Angeles, London and Dublin. For more information, please visit www.mackayshields.com or follow us on Twitter or LinkedIn.

*MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company.

About Risk:

All Investments are subject to risk and will fluctuate in value.

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.

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 which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner.

High yield securities generally offer a higher current yield than the yield available from higher grade issues, but are subject to greater market fluctuations, are less liquid and provide a greater risk of loss than investment grade securities.

Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity and political instability. These risks may be greater for emerging markets.

Short positions pose a risk because they lose value as a security's price increases; therefore, the loss on a short sale is theoretically unlimited.

The fund may invest in derivatives which may amplify the effects of market volatility on the Fund?s Share price.

Certain environmental, social, and governance ("ESG") criteria may be considered when evaluating an investment opportunity. This may result in the Fund having exposure to securities or sectors that are significantly different than the composition of the Fund's benchmark and performing differently than other funds and strategies in its peer group that do not take into account ESG criteria. There is no assurance that employing ESG strategies will result in more favorable investment performance.

Consider the Funds' investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com. Read the prospectus carefully before investing.

IndexIQ? is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs. 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.

Source: IndexIQ

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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