IndexIQ Changes Sub-Advisor For Three Of Their Funds (CPI, GRES, MNA)

According to an SEC Filing, effective February 12, 2011, Mellon Capital Management Corporation, currently the sub-advisor to the IQ Real Return ETF and the IQ Global Resources ETF (together with the IQ Merger Arbitrage ETF, the “Funds”), will no longer perform sub-advisory services to the Funds, and IndexIQ Advisors LLC, the investment advisor to the Funds, will assume day-to-day responsibility for portfolio management of the Funds.

Portfolio Manager

The IQ Real Return ETF (NYSE:CPI) and IQ Global Resources ETF (NYSE:GRES) is to managed by the Advisor’s portfolio management team. The lead portfolio manager for such Funds and the primary person responsible for the day-to-day management of their portfolios is Julie Abbett. Julie Abbett is Senior Vice President and Head of Portfolio Management for IndexIQ Advisors, LLC. Ms. Abbett has been with the IndexIQ Advisors, LLC since September 2009. Prior to joining IndexIQ, she was a Portfolio Manager at Deutsche Asset Management (DeAM)/DB Advisors for over 9 years. She was a Director and Portfolio Manager for various U.S. and Global strategies, which included the DWS Disciplined Market Neutral Fund, the DWS Blue Chip Fund, both the DWS Disciplined Long Short Growth and Value Funds, as well as a number of other institutional and sub-advised funds. Before joining DeAM/DB Advisors, Ms. Abbett worked for FactSet Research Systems, Inc. as a Product Developer and at BARRA, Inc. as a Senior Consultant. Ms. Abbett graduated with a BA from the University of Connecticut.

Esposito Partners, LLC (“Esposito”), which is unaffiliated with the Advisor, is expected to serve as the investment sub-advisor to the IQ Merger Arbitrage ETF upon such Fund’s commencement of operations pursuant to a sub-advisory agreement with the Advisor (the “Esposito Sub-Advisory Agreement”). Esposito’s principal offices are located at 300 Crescent Ct., Suite 650, Dallas, TX 75201. As of December 31, 2010, Esposito had approximately $25 million in assets under management. Pursuant to the Esposito Sub-Advisory Agreement, Esposito will manage the investment and reinvestment of the IQ Merger Arbitrage ETF’s assets on an ongoing basis under the supervision of the Advisor.

The IQ Merger Arbitrage ETF (NYSE:MNA) is to be managed by Esposito’s portfolio management team. The individual members of the team responsible for the day-to-day management of the Fund’s portfolio sub-advised by Esposito are:

Kris Marca has been a Portfolio Manager at Esposito since November 2009. Mr. Marca has over six years of experience in the securities industry. From 2003 to 2008, he worked as a trade assistant on the Equity Derivatives desk at HBK Capital Management, a multi-strategy hedge fund in Dallas. He graduated from the University of Texas at Austin with a degree in Biology and a minor in Business. Mr. Marca proceeded to obtain an MBA in 2003 from Texas Christian University in Fort Worth. He is currently enrolled in the CFA program as a Level 3 candidate and holds the Series 65 security registration.

Ben Deweese has been a Portfolio Manager at Esposito since July 2009. Mr. Deweese has over seven years of experience in the securities industry. From 2003 to 2007, he served as a Securities Operations Analyst for Bank of America’s Global Wealth and Investment Management Group. Mr. Deweese graduated from the University of Texas at Austin in 2002 with a degree in Government and a minor in Business. He currently holds series 7, 55, 63, and 65 securities registrations.

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