INVESTMENT COMPANY BOND
GREAT AMERICAN INSURANCE COMPANY
(A Stock Insurance Company, Herein Called
the Underwriter)
DECLARATIONS Bond No. 314-79-17 - 02
Item 1. Name of Insured (herein called Insured):
IndexIQ Trust and IndexIQ ETF Trust Principal Address: 800 Westchester Avenue, Suite N611 Rye Brook, NY 10573
Item 2. Bond Period from 12:01 a.m. 05/08/2011
to 12:01 a.m. 05/08/2012 the effective date of the termination or cancellation of this bond, standard time at the Principal Address
as to each of said dates.
Item 3. Limit of Liability - Subject to
Sections 9, 10 and 12 hereof, Amount applicable to
Limit of Liability
Deductible
Insuring Agreement (A)-FIDELITY $1,000,000
$0
Insuring Agreement (B)-ON PREMISES $1,000,000
$5,000
Insuring Agreement (C)-IN TRANSIT
$1,000,000
$5,000
Insuring Agreement (D)-FORGERY OR ALTERATION $1,000,000
$5,000
Insuring Agreement (E)-SECURITIES $1,000,000
$5,000
Insuring Agreement (F)-COUNTERFEIT CURRENCY $1,000,000
$5,000
Insuring Agreement (G)-STOP PAYMENT $100,000
$5,000
Insuring Agreement (H)-UNCOLLECTIBLE ITEMS OF DEPOSIT $100,000
$5,000
Insuring Agreement (I)-AUDIT EXPENSE $100,000
$5,000
Insuring Agreement (J)-TELEFACSIMILE TRANSMISSIONS $1,000,000
$5,000
Insuring Agreement (K)-UNAUTHORIZED SIGNATURES $100,000
$5,000
Optional Insuring Agreements and Coverages
Insuring Agreement (L)-COMPUTER SYSTEMS
$1,000,000 $5,000
Insuring Agreement (M)-AUTOMATED
PHONE SYSTEMS Not Covered N/A
If Not
Covered is inserted above opposite any specified Insuring Agreement or Coverage, such Insuring Agreement or Coverage and
any other reference thereto in this bond shall be deemed to be deleted therefrom.
Item 4. Offices or Premises Covered-Offices
acquired or established subsequent to the effective date of this bond are covered according to the terms of General Agreement
A. All the Insureds offices or premises in existence at the time this bond becomes effective are covered under this bond
except the offices or premises located as follows: N/A
Item 5. The liability of the Underwriter
is subject to the terms of the following riders attached hereto: Riders No. 1, 2 & 3 Item 6. The Insured by the acceptance
of this bond gives to the Underwriter terminating or cancelling prior bond(s) or policy(ies) No.(s) 314-79-17 - 01 such termination
or cancellation to be effective as of the time this bond becomes effective.
By: “/S/
Frank J. Scheckton, Jr.”
(Authorized Representative)
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INVESTMENT COMPANY BOND
The Underwriter,
in consideration of an agreed premium, and subject to the Declarations made a part hereof, the General Agreements, Conditions
and Limitations and other terms of this bond, agrees with the Insured, in accordance with Insuring Agreements hereof to which
an amount of insurance is applicable as set forth in Item 3 of the Declarations and with respect to loss sustained by the Insured
at any time but discovered during the Bond period, to indemnify and hold harmless the Insured for:
INSURING AGREEMENTS
(A) FIDELITY
Loss resulting
from any dishonest or fraudulent act(s), including Larceny or Embezzlement committed by an Employee, committed anywhere and whether
committed alone or in collusion with others, including loss of Property resulting from such acts of an Employee, which Property
is held by the Insured for any purpose or in any capacity and whether so held gratuitously or not and whether or not the Insured
is liable therefor.
Dishonest
or fraudulent act(s) as used in this Insuring Agreement shall mean only dishonest or fraudulent act(s) committed by such Employee
with the manifest intent:
(a) to cause the
Insured to sustain such loss; and
(b) to obtain financial
benefit for the Employee, or for any other person or organization intended by the Employee to receive such benefit, other than
salaries, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal
course of employment.
(B) ON PREMISES
Loss of Property
(occurring with or without negligence or violence) through robbery, burglary, Larceny, theft, holdup, or other fraudulent means,
misplacement, mysterious unexplainable disappearance, damage thereto or destruction thereof, abstraction or removal from the possession,
custody or control of the Insured, and loss of subscription, conversion, redemption or deposit privileges through the misplacement
or loss of Property, while the Property is (or is supposed or believed by the Insured to be) lodged or deposited within any offices
or premises located anywhere, except in an office listed in Item 4 of the Declarations or amendment thereof or in the mail or
with a carrier for hire other than an armored motor vehicle company, for the purpose of transportation.
Offices and Equipment
(1) Loss of
or damage to furnishings, fixtures, stationary, supplies or equipment, within any of the Insureds offices covered under
this bond caused by Larceny or theft in, or by burglary, robbery or hold-up of such office, or attempt thereat, or by vandalism
or malicious mischief; or (2) loss through damage to any such office by Larceny or theft in, or by burglary, robbery or hold-up
of such office or attempt thereat.
(C) IN TRANSIT
Loss of Property
(occurring with or without negligence or violence) through robbery, Larceny, theft, hold-up, misplacement, mysterious unexplainable
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disappearance, being lost or otherwise made
away with, damage thereto or destruction thereof, and loss of subscription, conversion, redemption or deposit privileges through
the misplacement or loss of Property, while the Property is in transit anywhere in the custody of any person or persons acting
as messenger, except while in the mail or with a carrier for hire, other than an armored motor vehicle company, for the purpose
of transportation, such transit to begin immediately upon receipt of such Property by the transporting person or persons, and
to end immediately upon delivery thereof at destination.
(D) FORGERY OR ALTERATION
Loss through
FORGERY or ALTERATION of, on or in any bills of exchange, checks, drafts, acceptances, certificates of deposit, promissory notes,
or other written promises, orders or directions to pay sums certain in money due bills, money orders, warrants, orders upon public
treasuries, letters of credit, written instructions, advices or applications directed to the Insured, authorizing or acknowledging
the transfer, payment, delivery or receipt of funds or Property, which instructions or advices or applications purport to have
been signed or endorsed by any customer of the Insured, shareholder or subscriber to shares, whether certificated or uncertificated,
of any Investment Company or by any financial or banking institution or stock-broker but which instructions, advices or applications
either bear the forged signature or endorsement or have been altered without the knowledge and consent of such customer, shareholder
or subscriber to shares, whether certificated or uncertificated, of an Investment Company, financial or banking institution or
stockbroker, withdrawal orders or receipts for the withdrawal of funds or Property, or receipts or certificates of deposit for
Property and bearing the name of the Insured as issuer, or of another Investment Company for which the Insured acts as agent,
excluding, however, any loss covered under Insuring Agreement (F) hereof whether or not coverage for Insuring Agreement (F) is
provided for in the Declarations of this bond.
Any check
or draft (a) made payable to a fictitious payee and endorsed in the name of such fictitious payee or (b) procured in a transaction
with the maker or drawer thereof or with one acting as an agent of such maker or drawer or anyone impersonating another and made
or drawn payable to the one so impersonated and endorsed by anyone other than the one impersonated, shall be deemed to be forged
as to such endorsement.
Mechanically
reproduced facsimile signatures are treated the same as handwritten signatures.
(E) SECURITIES
Loss sustained
by the Insured, including loss sustained by reason of a violation of the constitution, by-laws, rules or regulations of any Self
Regulatory Organization of which the Insured is a member or which would have been imposed upon the Insured by the constitution,
by-laws, rules or regulations of any Self Regulatory Organization if the Insured had been a member thereof,
(1) through
the Insureds having, in good faith and in the course of business, whether for its own account or for the account of others,
in any representative, fiduciary, agency or any other capacity, either gratuitously or otherwise, purchased or otherwise acquired,
accepted or received, or sold or delivered, or given any value, extended any credit or assumed any liability, on the faith of,
or otherwise acted upon, any securities, documents or other written instruments which prove to have been
(a)
counterfeited, or
(b) forged as to the signature of any maker, drawer, issuer, endorser,
assignor, lessee, transfer agent or registrar, acceptor, surety or guarantor or as to the
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signature of any person signing in any other
capacity, or
(c)
raised or otherwise altered, or lost, or stolen, or (2) through the Insureds having, in good faith and in the course of
business, guaranteed in writing or witnessed any signatures whether for valuable consideration or not and whether or not such
guaranteeing or witnessing is ultra vires the Insured, upon any transfers, assignments, bills of sale, powers of attorney, guarantees,
endorsements or other obligations upon or in connection with any securities, documents or other written instruments and which
pass or purport to pass title to such securities, documents or other written instruments; EXCLUDING, losses caused by FORGERY
or ALTERATION of, on or in those instruments covered under Insuring Agreement (E) hereof.
Securities,
documents or other written instruments shall be deemed to mean original (including original counterparts) negotiable or non-negotiable
agreements which in and of themselves represent an equitable interest, ownership, or debt, including an assignment thereof which
instruments are in the ordinary course of business, transferable by delivery of such agreements with any necessary endorsement
or assignment.
The word counterfeited
as used in this Insuring Agreement shall be deemed to mean any security, document or other written instrument which is intended
to deceive and to be taken for an original.
Mechanically
reproduced facsimile signatures are treated the same as handwritten signatures.
(F) COUNTERFEIT CURRENCY
Loss through
the receipt by the Insured, in good faith, of any counterfeited money orders or altered paper currencies or coin of the United
States of America or Canada issued or purporting to have been issued by the United States of America or Canada or issued pursuant
to a United States of America or Canadian statute for use as currency.
(G) STOP PAYMENT
Loss against
any and all sums which the Insured shall become obligated to pay by reason of the Liability imposed upon the Insured by law for
damages:
For having
either complied with or failed to comply with any written notice of any customer, shareholder or subscriber of the Insured or
any Authorized Representative of such customer, shareholder or subscriber to stop payment of any check or draft made or drawn
by such customer, shareholder or subscriber or any Authorized Representative of such customer, shareholder or subscriber, or
For having
refused to pay any check or draft made or drawn by any customer, shareholder or subscriber of the Insured, or any Authorized Representative
of such customer, shareholder or subscriber.
(H) UNCOLLECTIBLE ITEMS OF DEPOSIT
Loss resulting
from payments of dividends or fund shares, or withdrawals permitted from any customers, shareholders or subscribers
account based upon Uncollectible items of Deposit of a customer, shareholder or subscriber credited by the Insured or the Insureds
agent to such customers, shareholders or subscribers Mutual Fund Account: or loss resulting from any item of
Deposit processed through an Automated Clearing House which is reversed by the customer, shareholder or subscriber and
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deemed uncollectible by the Insured.
Loss includes
dividends and interest accrued not to exceed 15% of the Uncollectible items which are deposited.
This Insuring
Agreement applies to all Mutual Funds with exchange privileges if all Fund(s) in the exchange program are insured
by a Great American Insurance Company of Cincinnati, OH for Uncollectible Items of Deposit. Regardless of the number of transactions
between Fund(s) the minimum number of days of deposit within the Fund(s) before withdrawal as declared in the Fund(s) prospectus
shall begin from the date a deposit was first credited to any Insured Fund(s).
(I) AUDIT EXPENSE
Expense incurred
by the Insured for that part of the costs of audits or examinations required by any governmental regulatory authority to be conducted
either by such authority or by an independent accountant by reason of the discovery of loss sustained by the Insured through any
dishonest or fraudulent act(s), including Larceny or Embezzlement of any of the Employees. The total liability of the Underwriter
for such expense by reason of such acts of any Employee or in which such Employee is concerned or implicated or with respect to
any one audit or examination is limited to the amount stated opposite Audit Expense in Item 3 of the Declarations; it being understood,
however, that such expense shall be deemed to be a loss sustained by the Insured through any dishonest or fraudulent act(s), including
Larceny or Embezzlement of one or more of the Employees and the liability under this paragraph shall be in addition to the Limit
of Liability stated in Insuring Agreement (A) in Item 3 of the Declarations.
(J) TELEFACSIMILE TRANSMISSIONS
Loss resulting
by reason of the Insured having transferred, paid or delivered any funds or Property, established any credit, debited any account,
or given any value relying on any fraudulent instructions sent by a customer or financial institution by Telefacsimile Transmission
directed to the Insured, authorizing or acknowledging the transfer, payment, or delivery of funds or property, the establishment
of a credit, debiting of any account, or the giving of value by the Insured, but only if such telefacsimile instructions:
(i) bear a
valid test key exchanged between the Insured and a customer or another financial institution with authority to use such test key
for Telefacsimile instructions in the ordinary course of business, but which test key has been wrongfully obtained by a person
who was not authorized to initiate, make, validate or authenticate a test key arrangement; and
(ii) fraudulently purport to have been sent by such customer or financial institution, but which
telefacsimile instructions are transmitted without the knowledge or consent of such customer or financial institution by a person
other than such customer or financial institution and which bear a forged signature.
Telefacsimile
means a system of transmitting written documents by electronic signals over telephone lines to equipment maintained by the Insured
within its communication room for the purposes of
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reproducing a copy of said document. It
does not mean electronic communication sent by Telex, TWC, or electronic mail, or Automated Clearing House.
(K) UNAUTHORIZED SIGNATURES
Loss resulting
directly from the Insured having accepted, paid or cashed any check or withdrawal order, draft, made or drawn on a customers
account which bears the signature or endorsement of one other than a person whose name and signature is on the application on
file with the Insured as a signatory on such account.
It shall be
a condition precedent to the Insureds right to recovery under this Insuring Agreement that the Insured shall have on file
signatures of all persons who are authorized signatories on such account.
GENERAL AGREEMENTS
(A) ADDITIONAL OFFICES OR EMPLOYEES-
CONSOLIDATION OR MERGER-NOTICE
(1) If the
Insured shall, while this bond is in force, establish any additional office or offices, such office or offices shall be automatically
covered hereunder from the dates of their establishment, respectively. No notice to the Underwriter of an increase during any
premium period in the number of offices or in the number of Employees at any of the offices covered hereunder need be given and
no additional premium need be paid for the remainder of such premium period.
(2) If an
Investment Company, named as Insured herein, shall, while this bond is in force, merge or consolidate with, or purchase the assets
of another institution, coverage for such acquisition shall apply automatically from the date of acquisition. The Insured shall
notify the Underwriter of such acquisition within 60 days of said date, and an additional premium shall be computed only if such
acquisition involves additional offices or employees.
(B) WARRANTY
No statement
made by or on behalf of the Insured, whether contained in the application or otherwise, shall be deemed to be a warranty of anything
except that it is true to the best of the knowledge and belief of the person making the statement.
(C) COURT COSTS AND ATTORNEYS
FEES (Applicable to all Insuring Agreements or Coverages now or hereafter forming part of this bond)
The Underwriter
will Indemnify the Insured against court costs and reasonable attorneys fees incurred and paid by the Insured in defense,
whether or not successful, whether or not fully litigated on the merits and whether or not settled of any suit or legal proceeding
brought against the Insured to enforce the Insureds liability or alleged liability on account of any loss, claim or damage
which, if established against the Insured, would constitute a loss sustained by the Insured covered under the terms of this bond
provided, however,
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that with respect to Insuring Agreement
(A) this indemnity shall apply only in the event that
(1) an Employee
admits to being guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement; or
(2) an Employee is
adjudicated to be guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement;
(3) in the absence
of (1) or (2) above an arbitration panel agrees, after a review of an agreed statement of facts, that an Employee would be found
guilty of dishonesty if such Employee were prosecuted.
The Insured
shall promptly give notice to the Underwriter of any such suit or legal proceeding and at the request of the Underwriter shall
furnish it with copies of all pleadings and other papers therein. At the Underwriters election the Insured shall permit
the Underwriter to conduct the defense of such suit or legal proceeding, in the Insureds name, through attorneys of the
Underwriters selection. In such event, the Insured shall give all reasonable information and assistance which the Underwriter
shall deem necessary to the proper defense of such suit or legal proceeding.
If the Insureds
liability or alleged liability is greater than the amount recoverable under this bond, or if a Deductible Amount is applicable,
the liability of the Underwriter under this General Agreement is limited to that percentage of litigation expense determined by
pro ration of the bond limit of liability to the amount claimed, after the application of any deductible. This litigation expense
will be in addition to the Limit of Liability for the applicable Insuring Agreement.
(D) FORMER EMPLOYEE
Acts of Employee,
as defined in this bond, are covered under Insuring Agreement (A) only while the Employee is in the Insureds employ. Should
loss involving a former Employee of the Insured be discovered subsequent to the termination of employment, coverage would still
apply under Insuring Agreement (A) if the direct proximate cause of the loss occurred while the former Employee performed duties
within the scope of his/her employment.
THE FOREGOING INSURING AGREEMENTS AND GENERAL
AGREEMENTS ARE SUBJECT TO THE FOLLOWING CONDITIONS AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following
terms, as used in this bond, shall have the respective meanings stated in this Section:
(a) Employee
means:
(1)
any of the Insureds officers, partners, or employees, and
(2)
any of the officers or employees of any predecessor of the Insured whose principal assets are acquired by the Insured by consolidation
or merger with, or purchase of assets of capital stock of such predecessor, and
(3)
attorneys retained by the Insured to perform
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legal services for the Insured and the employees
of such attorneys while such attorneys or the employees of such attorneys are performing such services for the Insured, and
(4) guest students
pursuing their studies or duties in any of the Insureds offices, and
(5) directors
or trustees of the Insured, the investment advisor, underwriter (distributor), transfer agent, or shareholder accounting record
keeper, or administrator authorized by written agreement to keep financial and/or other required records, but only while performing
acts coming within the scope of the usual duties of an officer or employee or while acting as a member of any committee duly elected
or appointed to examine or audit or have custody of or access to the Property of the Insured, and
(6) any individual
or individuals assigned to perform the usual duties of an employee within the premises of the Insured by contract, or by any agency
furnishing temporary personnel on a contingent or part-time basis, and
(7) each natural
person, partnership or corporation authorized by written agreement with the Insured to perform services as electronic data processor
of checks or other accounting records of the Insured, but excluding any such processor who acts as transfer agent or in any other
agency capacity in issuing checks, drafts or securities for the Insured, unless included under Subsection (9) hereof, and
(8) those persons
so designated in section 15, Central Handling of Securities, and
(9) any officer,
partner or Employee of
a)
an investment advisor,
b)
an underwriter (distributor),
c)
a transfer agent or shareholder accounting record-keeper, or
d)
an administrator authorized by written agreement to keep financial and/or other required records, for an Investment Company, named
as Insured while performing acts coming within the scope of the usual duties of an officer or Employee of any Investment Company
named as Insured herein, or while acting as a member of any committee duly elected or appointed to examine or audit or have custody
of or access to the Property of any such Investment Company, provided that only Employees or partners of a transfer agent, shareholder
accounting record- keeper or administrator which is an affiliated person as defined in the Investment Company Act of 1940, of
an Investment Company named as Insured or is an affiliated person of the adviser, underwriter or administrator of such Investment
Company, and which is not a bank, shall be included within the definition of Employee.
Each employer of temporary personnel or
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processors as set forth in Sub-Sections
(6) and (7) of Section 1
(a) and their
partners, officers and employees shall collectively be deemed to be one person for all the purposes of this bond, excepting, however,
the last paragraph of Section 13.
Brokers, or
other agents under contract or representatives of the same general character shall not be considered Employees.
(b) Property
means money (i.e. currency, coin, bank notes, Federal Reserve notes), postage and revenue stamps, U.S. Savings Stamps, bullion,
precious metals of all kinds and in any form and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious
and semi-precious stones, bonds, securities, evidences of debts, debentures, scrip, certificates, interim receipts, warrants,
rights, puts, calls, straddles, spreads, transfers, coupons, drafts, bills of exchange, acceptances, notes, checks, withdrawal
orders, money orders, warehouse receipts, bills of lading, conditional sales contracts, abstracts of title, insurance policies,
deeds, mortgages under real estate and/or chattels and upon interests therein, and assignments of such policies, mortgages and
instruments, and other valuable papers, including books of account and other records used by the Insured in the conduct of its
business, and all other instruments similar to or in the nature of the foregoing including Electronic Representations of such
Instruments enumerated above (but excluding all data processing records) in which the Insured has an interest or in which the
Insured acquired or should have acquired an interest by reason of a predecessors declared financial condition at the time
of the Insureds consolidation or merge with, or purchase of the principal assets of, such predecessor or which are held
by the Insured for any purpose or in any capacity and whether so held by the Insured for any purpose or in any capacity and whether
so held gratuitously or not and whether or not the Insured is liable therefor.
(c) Forgery
means the signing of the name of another with the intent to deceive; it does not include the signing of ones own name with
or without authority, in any capacity, or for any purpose.
(d) Larceny
and Embezzlement as it applies to any named Insured means those acts as set forth in Section 37 of the Investment Company
Act of 1940.
(e) Items
of Deposit means any one or more checks and drafts.
SECTION 2. EXCLUSIONS THIS BOND DOES NOT
COVER:
(a) loss effected
directly or indirectly by means of forgery or alteration of, on or in any instrument, except when covered by Insuring Agreement
(A), (D), (E) or (F).
(b) loss due
to riot or civil commotion outside the United States of America and Canada; or loss due to military, naval or usurped power, war
or insurrection unless such loss occurs in transit in the circumstances recited in Insuring Agreement (D), and unless, when such
transit was initiated, there was no knowledge of such riot, civil commotion, military, naval or usurped power, war or insurrection
on the part of any person acting for the Insured in initiating such transit.
(c) loss,
in time of peace or war, directly or indirectly caused by or resulting from the effects of nuclear fission or
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fusion or radioactivity; provided, however,
that this paragraph shall not apply to loss resulting from industrial uses of nuclear energy.
(d) loss resulting
from any wrongful act or acts of any person who is a member of the Board of Directors of the Insured or a member of any equivalent
body by whatsoever name known unless such person is also an Employee or an elected official, partial owner or partner of the Insured
in some other capacity, nor, in any event, loss resulting from the act or acts of any person while acting in the capacity of a
member of such Board or equivalent body.
(e) loss resulting
from the complete or partial nonpayment of, or default upon, any loan or transaction in the nature of, or amounting to, a loan
made by or obtained from the Insured or any of its partners, directors or Employees, whether authorized or unauthorized and whether
procured in good faith or through trick, artifice, fraud or false pretenses, unless such loss is covered under Insuring Agreement
(A), (E) or (F).
(f) loss resulting
from any violation by the Insured or by any Employee
(1)
of law regulating (a) the issuance, purchase or sale of securities, (b) securities transactions upon Security Exchanges or over
the counter market, (c) Investment Companies, or (d) Investment Advisors, or
(2)
of any rule or regulation made pursuant to any such law. unless such loss, in the absence of such laws, rules or regulations,
would be covered under Insuring Agreements (A) or (E).
(g) loss of
Property or loss of privileges through the misplacement or loss of Property as set forth in Insuring Agreement (C) or (D) while
the Property is in the custody of any armored motor vehicle company, unless such loss shall be in excess of the amount recovered
or received by the Insured under (a) the Insureds contract with said armored motor vehicle company, (b) insurance carried
by said armored motor vehicle company for the benefit of users of its service, and (c) all other insurance and indemnity in force
in whatsoever form carried by or for the benefit of users of said armored motor vehicle companys service, and then this
bond shall cover only such excess.
(h) potential
income, including but not limited to interest and dividends, not realized by the Insured because of a loss covered under this
bond, except as included under Insuring Agreement (I).
(i) all damages
of any type for which the Insured is legally liable, except direct compensatory damages arising from a loss covered under this
bond.
(j) loss through
the surrender of Property away from an office of the Insured as a result of a threat
(1)
to do bodily harm to any person, except loss of Property in transit in the custody of any person acting as messenger provided
that when such transit was initiated there was no knowledge by the Insured of any such threat, or
(2)
to do damage to the premises or Property of the Insured, except when covered under Insuring
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Agreement (A).
(k) all costs,
fees and other expenses incurred by the Insured in establishing the existence of or amount of loss covered under this bond unless
such indemnity is provided for under Insuring Agreement (I).
(l) loss resulting
from payments made or withdrawals from the account of a customer of the Insured, shareholder or subscriber to shares involving
funds erroneously credited to such account, unless such payments are made to or withdrawn by such depositor or representative
of such person, who is within the premises of the drawee bank of the Insured or within the office of the Insured at the time of
such payment or withdrawal or unless such payment is covered under Insuring Agreement (A).
(m) any loss
resulting from Uncollectible Items of Deposit which are drawn from a financial institution outside the fifty states of the United
States of America, District of Columbia, and territories and possessions of the United States of America, and Canada.
SECTION 3. ASSIGNMENT OF RIGHTS
This bond
does not afford coverage in favor of any Employers of temporary personnel or of processors as set forth in sub-sections (6) and
(7) of Section 1(a) of this bond, as aforesaid, and upon payment to the insured by the Underwriter on account of any loss through
dishonest or fraudulent act(s) including Larceny or Embezzlement committed by any of the partners, officers or employees of such
Employers, whether acting alone or in collusion with others, an assignment of such of the Insureds rights and causes of
action as it may have against such Employers by reason of such acts so committed shall, to the extent of such payment, be given
by the Insured to the Underwriter, and the Insured shall execute all papers necessary to secure to the Underwriter the rights
herein provided for.
SECTION 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS
This bond
is for the use and benefit only of the Insured named in the Declarations and the Underwriter shall not be liable hereunder for
loss sustained by anyone other than the Insured unless the Insured, in its sole discretion and at its option, shall include such
loss in the Insureds proof of loss. At the earliest practicable moment after discovery of any loss hereunder the Insured
shall give the Underwriter written notice thereof and shall also within six months after such discovery furnish to the Underwriter
affirmative proof of loss with full particulars. If claim is made under this bond for loss of securities or shares, the Underwriter
shall not be liable unless each of such securities or shares is identified in such proof of loss by a certificate or bond number
or, where such securities or shares are uncertificated, by such identification means as agreed to by the Underwriter. The Underwriter
shall have thirty days after notice and proof of loss within which to investigate the claim, and this shall apply notwithstanding
the loss is made up wholly or in part of securities of which duplicates may be obtained. Legal proceedings for recovery of any
loss hereunder shall not be brought prior to the expiration of sixty days after such proof of loss is filed with the Underwriter
nor after the expiration of twenty-four months from the discovery of such loss, except that any action or proceeding to recover
hereunder on account of any judgment against the Insured in any suit mentioned in General Agreement C or to recover attorneys
fees paid in any such suit, shall be begun
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within twenty-four months from the date
upon which the judgment in such suit shall become final. If any limitation embodied in this bond is prohibited by any law controlling
the construction hereof, such limitation shall be deemed to be amended so as to be equal to the minimum period of limitation permitted
by such law.
Discovery
occurs when the Insured
(a) becomes
aware of facts, or
(b) receives
written notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstance which
would cause a reasonable person to assume that a loss covered by the bond has been or will be incurred even though the exact amount
or details of loss may not be then known.
SECTION 5. VALUATION OF PROPERTY
The value
of any Property, except books of accounts or other records used by the Insured in the conduct of its business, for the loss of
which a claim shall be made hereunder, shall be determined by the average market value of such Property on the business day next
preceding the discovery of such loss; provided, however, that the value of any Property replaced by the Insured prior to the payment
of claim therefor shall be the actual market value at the time of replacement; and further provided that in case of a loss or
misplacement of interim certificates, warrants, rights, or other securities, the production which is necessary to the exercise
of subscription, conversion, redemption or deposit privileges, the value thereof shall be the market value of such privileges
immediately preceding the expiration thereof if said loss or misplacement is not discovered until after their expiration. If no
market price is quoted for such Property or for such privileges, the value shall be fixed by agreement between the parties or
by arbitration.
In case of
any loss or damage to Property consisting of books of accounts or other records used by the Insured in the conduct of its business,
the Underwriter shall be liable under this bond only if such books or records are actually reproduced and then for not more than
the cost of blank books, blank pages or other materials plus the cost of labor for the actual transcription or copying of data
which shall have been furnished by the Insured in order to reproduce such books and other records.
SECTION 6. VALUATION OF PREMISES AND FURNISHINGS
In case of
damage to any office of the Insured, or loss of or damage to the furnishings, fixtures, stationary, supplies, equipment, safes
or vaults therein, the Underwriter shall not be liable for more than the actual cash value thereof, or for more than the actual
cost of their replacement or repair. The Underwriter may, at its election, pay such actual cash value or make such replacement
or repair. If the Underwriter and the Insured cannot agree upon such cash value or such cost or replacement or repair, such shall
be determined by arbitration.
SECTION 7. LOST SECURITIES
If the Insured
shall sustain a loss of securities the total value of which is in excess of the limit stated in Item 3 of the Declarations of
this bond, the liability of the Underwriter shall be limited to payment for, or duplication of, securities having value equal
to the limit stated in Item 3 of the Declarations of this bond.
If the Underwriter
shall make payment to the Insured for any loss of securities, the Insured shall thereupon assign to the Underwriter all of the
Insureds rights, title and interests in and to said securities.
With respect
to securities the value of which do not exceed the Deductible Amount (at the time of the discovery of the loss) and for which
the Underwriter may at its sole discretion and option and at the request of the Insured issue a Lost
Page 12
Instrument Bond or Bonds to effect replacement
thereof, the Insured will pay the usual premium charged therefor and will indemnify the Underwriter against all loss or expense
that the Underwriter may sustain because of the issuance of such Lost Instrument Bond or Bonds.
With respect
to securities the value of which exceeds the Deductible Amount (at the time of discovery of the loss) and for which the Underwriter
may issue or arrange for the issuance of a Lost Instrument Bond or Bonds to effect replacement thereof, the Insured agrees that
it will pay as premium therefor a proportion of the usual premium charged therefor, said proportion being equal to the percentage
that the Deductible Amount bears to the value of the securities upon discovery of the loss, and that it will indemnify the issuer
of said Lost Instrument Bond or Bonds against all loss and expense that is not recoverable from the Underwriter under the terms
and conditions of this INVESTMENT COMPANY BOND subject to the Limit of Liability hereunder.
SECTION 8. SALVAGE
In case of
recovery, whether made by the Insured or by the Underwriter, on account of any loss in excess of the Limit of Liability hereunder
plus the Deductible Amount applicable to such loss from any source other than suretyship, insurance, reinsurance, security or
indemnity taken by or for the benefit of the Underwriter, the net amount of such recovery, less the actual costs and expenses
of making same, shall be applied to reimburse the Insured in full for the excess portion of such loss, and the remainder, if any,
shall be paid first in reimbursement of the Underwriter and thereafter in reimbursement of the Insured for that part of such loss
within the Deductible Amount. The Insured shall execute all necessary papers to secure to the Underwriter the rights provided
for herein.
SECTION 9. NON-REDUCTION AND NON-ACCUMULATION
OF LIABILITY AND TOTAL LIABILITY
At all times
prior to termination hereof this bond shall continue in force for the limit stated in the applicable sections of Item 3 of the
Declarations of this bond notwithstanding any previous loss for which the Underwriter may have paid or be liable to pay hereunder;
PROVIDED, however, that regardless of the number of years this bond shall continue in force and the number of premiums which shall
be payable or paid, the liability of the Underwriter under this bond with respect to all loss resulting form
(a) any one
act of burglary, robbery or hold-up, or attempt thereat, in which no Partner or Employee is concerned or implicated shall be deemed
to be one loss, or
(b) any one
unintentional or negligent act on the part of any one person resulting in damage to or destruction or misplacement of Property,
shall be deemed to be one loss, or
(c) all wrongful
acts, other than those specified in (a) above, of any one person shall be deemed to be one loss, or
(d) all wrongful
acts, other than those specified in (a) above, of one or more persons (which dishonest act(s) or act(s) of Larceny or Embezzlement
include, but are not limited to, the failure of an Employee to report such acts of others) whose dishonest act or acts intentionally
or unintentionally, knowingly or unknowingly, directly or indirectly, aid or aids in any way, or permits the continuation of,
the dishonest act or acts of any other person or persons shall be deemed to be one loss with the act or acts of the persons aided,
or
(e) any one
casualty or event other than those specified in (a), (b), (c) or (d) preceding, shall be deemed to be one loss, and shall be limited
to the applicable Limit of Liability stated in Item 3 of the
Page 13
Declarations of this bond irrespective of
the total amount of such loss or losses and shall not be cumulative in amounts from year to year or from period to period.
Sub-section
(c) is not applicable to any situation to which the language of sub-section (d) applies.
SECTION 10. LIMIT OF LIABILITY
With respect
to any loss set forth in the PROVIDED clause of Section 9 of this bond which is recoverable or recovered in whole or in part under
any other bonds or policies issued by the Underwriter to the Insured or to any predecessor in interest of the Insured and terminated
or cancelled or allowed to expire and in which the period for discovery has not expired at the time any such loss thereunder is
discovered, the total liability of the Underwriter under this bond and under other bonds or policies shall not exceed, in the
aggregate, the amount carried hereunder on such loss or the amount available to the Insured under such other bonds, or policies,
as limited by the terms and conditions thereof, for any such loss if the latter amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured
shall hold, as indemnity against any loss covered hereunder, any valid and enforceable insurance or suretyship, the Underwriter
shall be liable hereunder only for such amount of such loss which is in excess of the amount of such other insurance or suretyship,
not exceeding, however, the Limit of Liability of this bond applicable to such loss.
SECTION 12. DEDUCTIBLE
The Underwriter
shall not be liable under any of the Insuring Agreements of this bond on account of loss as specified, respectively, in sub-sections
(a), (b), (c), (d) and (e) of Section 9, NON-REDUCTION AND NONACCUMULATION OF LIABILITY AND TOTAL LIABILITY, unless the amount
of such loss, after deducting the net amount of all reimbursement and/or recovery obtained or made by the insured, other than
from any bond or policy of insurance issued by an insurance company and covering such loss, or by the Underwriter on account thereof
prior to payment by the Underwriter of such loss, shall exceed the Deductible Amount set forth in Item 3 of the Declarations hereof
(herein called Deductible Amount) and then for such excess only, but in no event for more than the applicable Limit of Liability
stated in Item 3 of the Declarations.
The Insured
will bear, in addition to the Deductible Amount, premiums on Lost Instrument Bonds as set forth in Section 7.
There shall
be no deductible applicable to any loss under Insuring Agreement A sustained by any Investment Company named as Insured herein.
SECTION 13. TERMINATION
The Underwriter
may terminate this bond as an entirety by furnishing written notice specifying the termination date which cannot be prior to 90
days after the receipt of such written notice by each Investment Company named as Insured and the Securities and Exchange Commission,
Washington, D.C. The Insured may terminate this bond as an entirety by furnishing written notice to the Underwriter. When the
Insured cancels, the Insured shall furnish written notice to the Securities and Exchange Commission, Washington, D.C. prior to
90 days before the effective date of the termination. The Underwriter shall notify all other Investment Companies named as Insured
of the receipt of such termination notice and the termination cannot be effective prior to 90 days after receipt of written notice
by all other Investment Companies. Premiums are earned until the termination date as set forth herein.
Page 14
This Bond
will terminate as to any one Insured, (other than a registered management investment company), immediately upon taking over of
such Insured by a receiver or other liquidator or by State or Federal officials, or immediately upon the filing of a petition
under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors
of the Insured, or immediately upon such Insured ceasing to exist, whether through merger into another entity, or by disposition
of all of its assets.
This Bond
will terminate as to any registered management investment company upon the expiration of 90 days after written notice has been
given to the Securities and Exchange Commission, Washington, D.C.
The Underwriter
shall refund the unearned premium computed as short rates in accordance with the standard short rate cancellation tables if terminated
by the Insured or pro rata if terminated for any other reason.
This Bond
shall terminate
(a) as to
any Employee as soon as any partner, officer or supervisory Employee of the Insured, who is not in collusion with such Employee,
shall learn of any dishonest or fraudulent act(s), including Larceny or Embezzlement on the part of such Employee without prejudice
to the loss of any Property then in transit in the custody of such Employee and upon the expiration of ninety (90) days after
written notice has been given to the Securities and Exchange Commission, Washington, D.C. (See Section 16[d]) and to the Insured
Investment Company, or
(b) as to any
Employee 90 days after receipt by each Insured and by the Securities and Exchange Commission of a written notice from the Underwriter
of its desire to terminate this bond as to such Employee, or
(c) as to any
person, who is a partner, officer or employee of any Electronic Data Processor covered under this bond, from and after the time
that the Insured or any partner or officer thereof not in collusion with such person shall have knowledge of information that
such person has committed any dishonest or fraudulent act(s), including Larceny or Embezzlement in the service of the Insured
or otherwise, whether such act be committed before or after the time this bond is effective.
SECTION 14. RIGHTS AFTER TERMINATION OR
CANCELLATION
At any time
prior to the termination or cancellation of this bond as an entirety, whether by the Insured or the Underwriter, the Insured may
give to the Underwriter notice that if desires under this bond an additional period of 12 months within which to discover loss
sustained by the Insured prior to the effective date of such termination or cancellation and shall pay an additional premium therefor.
Upon receipt
of such notice from the Insured, the Underwriter shall give its written consent thereto: provided, however, that such additional
period of time shall terminate immediately;
(a) on the
effective date of any other insurance obtained by the Insured, its successor in business or any other party, replacing in whole
or in part the insurance afforded by this bond, whether or not such other insurance provides coverage for loss sustained prior
to its effective date, or
(b) upon takeover
of the Insureds business by any State or Federal official or agency, or by any receiver or liquidator, acting or appointed
for this purpose without the necessity of the Underwriter giving notice of such termination. In the
Page 15
event that such additional period of time
is terminated, as provided above, the Underwriter shall refund any unearned premium.
The right
to purchase such additional period for the discovery of loss may not be exercised by any State or Federal official or agency,
or by any receiver or liquidator, acting or appointed to take over the Insureds business for the operation or for the liquidation
thereof or for any other purpose.
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities
included in the systems for the central handling of securities established and maintained by Depository Trust Company, Midwest
Depository Trust Company, Pacific Securities Depository Trust Company, and Philadelphia Depository Trust Company, hereinafter
called Corporations, to the extent of the Insureds interest therein as effective by the making of appropriate entries on
the books and records of such Corporations shall be deemed to be Property.
The words
Employee and Employees shall be deemed to include the officers, partners, clerks and other employees of
the New York Stock Exchange, Boston Stock Exchange, Midwest Stock Exchange, Pacific Stock Exchange and Philadelphia Stock Exchange,
hereinafter called Exchanges, and of the above named Corporations, and of any nominee in whose name is registered any security
included within the systems for the central handling of securities established and maintained by such Corporations, and any employee
of any recognized service company, while such officers, partners, clerks and other employees and employees of service companies
perform services for such Corporations in the operation of such systems. For the purpose of the above definition a recognized
service company shall be any company providing clerks or other personnel to said Exchanges or Corporation on a contract basis.
The Underwriter
shall not be liable on account of any loss(es) in connection with the central handling of securities within the systems established
and maintained by such Corporations, unless such loss(es) shall be in excess of the amount(s) recoverable or recovered under any
bond or policy if insurance indemnifying such Corporations, against such loss(es), and then the Underwriter shall be liable hereunder
only for the Insureds share of such excess loss(es), but in no event for more than the Limit of Liability applicable hereunder.
For the purpose
of determining the Insureds share of excess loss(es) it shall be deemed that the Insured has an interest in any certificate
representing any security included within such systems equivalent to the interest the Insured then has in all certificates representing
the same security included within such systems and that such Corporation shall use their best judgment in apportioning the amount(s)
recoverable or recovered under any bond or policy of insurance indemnifying such Corporations against such loss(es) in connection
with the central handling of securities within such systems among all those having an interest as recorded by appropriate entries
in the books and records of such Corporations in Property involved in such loss(es) on the basis that each such interest shall
share in the amount(s) so recoverable or recovered in the ratio that the value of each such interest bears to the total value
of all such interests and that the Insureds share of such excess loss(es) shall be the amount of the Insureds interest
in such Property in excess of the amount(s) so apportioned to the Insured by such Corporations.
This bond
does not afford coverage in favor of such Corporations or Exchanges or any nominee in whose name is registered any security included
within the systems for the central handling of securities established and maintained by such Corporations, and upon payment to
the Insured by the Underwriter on account of any loss(Es) within the systems, an assignment of such of the Insureds rights
and causes of action as it may have against such Corporations or Exchanges shall to the
Page 16
extent of such payment, be given by the
Insured to the Underwriter, and the Insured shall execute all papers necessary to secure to the Underwriter the rights provided
for herein.
SECTION 16. ADDITIONAL COMPANIES INCLUDED
AS INSURED
If more than
one corporation, co-partnership or person or any combination of them be included as the Insured herein:
(a) the total
liability of the Underwriter hereunder for loss or losses sustained by any one or more or all of them shall not exceed the limit
for which the Underwriter would be liable hereunder if all such loss were sustained by any one of them.
(b) the one
first named herein shall be deemed authorized to make, adjust and receive and enforce payment of all claims hereunder and shall
be deemed to be the agent of the others for such purposes and for the giving or receiving of any notice required or permitted
to be given by the terms hereof, provided that the Underwriter shall furnish each named Investment Company with a copy of the
bond and with any amendment thereto, together with a copy of each formal filing of the settlement of each such claim prior to
the execution of such settlement,
(c) the Underwriter
shall not be responsible for the proper application of any payment made hereunder to said first named Insured,
(d) knowledge
possessed or discovery made by any partner, officer or supervisory Employee of any Insured shall for the purpose of Section 4
and Section 13 of this bond constitute knowledge or discovery by all the Insured, and
(e) if the
first named Insured ceases for any reason to be covered under this bond, then the Insured next named shall thereafter be considered
as the first named Insured for the purposes of this bond.
SECTION 17. NOTICE AND CHANGE OF CONTROL
Upon the Insureds
obtaining knowledge of a transfer of its outstanding voting securities which results in a change in control (as set forth in Section
2(a) (9) of the Investment Company Act of 1940) of the Insured, the Insured shall within thirty (30) days of such knowledge give
written notice to the Underwriter setting forth:
(a) the names
of the transferors and transferees (or the names of the beneficial owners if the voting securities are requested in another name),
and
(b) the total
number of voting securities owned by the transferors and the transferees (or the beneficial owners), both immediately before and
after the transfer, and
(c) the total
number of outstanding voting securities.
As used in
this section, control means the power to exercise a controlling influence over the management or policies of the Insured.
Failure to
give the required notice shall result in termination of coverage of this bond, effective upon the date of stock transfer for any
loss in which any transferee is concerned or implicated.
Such notice
is not required to be given in the case of an Insured which is an Investment Company.
SECTION 18. CHANGE OR MODIFICATION
This bond
or any instrument amending or effecting same may not be changed or modified orally. No changes in or modification thereof shall
be effective unless
Page 17
made by written endorsement issued to form
a part hereof over the signature of the Underwriters Authorized Representative. When a bond covers only one Investment Company
no change or modification which would adversely affect the rights of the Investment Company shall be effective prior to 60 days
after written notification has been furnished to the Securities and Exchange Commission, Washington, D. C. by the Insured or by
the Underwriter. If more than one Investment Company is named as the Insured herein, the Underwriter shall give written notice
to each Investment Company and to the Securities and Exchange Commission, Washington, D.C. not less than 60 days prior to the
effective date of any change or modification which would adversely affect the rights of such Investment Company.
IN WITNESS WHEREOF, the Underwriter has
caused this bond to be executed on the Declarations Page.
RIDER NO. 1
JOINT INSURED LIST
To be attached to and form part of Bond
No. 314-79-17 - 02
In favor of IndexIQ Trust and IndexIQ ETF
Trust
It is agreed that:
1. At the request of the Insured, the Underwriter
adds to the list of Insured under the attached bond the following:
IQ Alpha Hedge Strategy Fund
IQ Hedge Multi-Strategy Composite Portfolio
IQ Hedge Global Macro ETF Fund
IQ Hedge Long-Short Equity Fund
IQ Hedge Event Driven ETF Fund
IQ Hedge Market Neutral Fund
IQ Hedge Multi-Strategy Tracker ETF
IQ Hedge Macro Tracker ETF
IQ Hedge Long/Short Tracker ETF
IQ Hedge Event Driven Tracker ETF
IQ Hedge Market Neutral Tracker ETF
IQ Merger Arbitrage ETF
IQ Agribusiness Small Cap ETF
IQ Global Resources ETF
IQ Real Return ETF
IQ Canada Small Cap ETF
IQ Australia Small Cap ETF
IQ South Korea Small Cap ETF
IQ Taiwan Small Cap ETF
IQ Global Agribusiness Small Cap ETF
IQ Global Oil Small Cap ETF
IQ Hong Kong Small Capt ETF
IQ Japan Mid Cap ETF
IQ U.S. Real Estate Small Cap ETF
IQ Emerging Markets Mid Cap ETF
IQ Germany Small Cap ETF
IQ Mexico Small Cap ETF
IQ United Kingdom Small Cap ETF
IQ Asian Tigers ETF
IQ Asian Tigers Consumer ETF
Page 18
IQ Asian Tigers Small Cap ETF
IQ Asia Pacific ex-Japan Small Cap ETF
IQ Australia Mid Cap ETF
IQ Canada Mid Cap ETF
IQ Global Precious Metals Small Cap ETF
IQ BRIC Small Cap ETF
IQ Active ETF Trust
IQ Global Equity ETF
IQ Long/Short Alpha ETF
IQ Short Alpha ETF
IQ Bear Large Cap U.S. Equity ETF
IQ Bear Small Cap U.S. Equity ETF
IQ Bear Non-Financial U.S. Equity ETF
IQ Bear Industry Leaders U.S. Equity ETF
IQ Bear International Equity ETF
IQ Bear Emerging Markets Equity ETF
2. This rider shall become effective as of
12:01 a.m. on 05/08/2013 standard time.
RIDER NO. 2
INSURING AGREEMENT L
To be attached to and form part of Bond
No. 314-79-17 - 02 in favor of IndexIQ Trust and IndexIQ ETF Trust
It is agreed that:
1. The attached bond is amended by adding
an additional Insuring Agreement as follows:
COMPUTER SYSTEMS
Loss resulting directly from a fraudulent
(1) entry of data into, or
(2) change of data elements or programs
within a Computer System; provided that fraudulent entry or change causes
Page 19
(a) Property
to be transferred paid or delivered,
(b) an account
of the Insured, or of its customer, to be added, deleted, debited or credited, or
(c) an unauthorized
account or a fictitious account to be debited or credited;
(3) voice instruction or advices having been
transmitted to the Insured or its agent(s) by telephone; and provided further, the fraudulent entry or change is made or caused
by an individual acting with the manifest intent to:
(i) cause the
Insured or its agent(s) to sustain a loss, and
(ii) obtain
financial benefit for that individual or for other persons intended by that individual to receive a financial benefit,
(iii) and further
provided such voice instructions or advices: (a) were made by a person who purported to represent an individual authorized to
make such voice instructions or advices; and (b) were electronically recorded by the Insured or its agent(s).
(4) It shall be a condition to recovery
under the Computer Systems Rider that the Insured or its agent(s) shall to the best of their ability electronically record all
voice instructions or advices received over the telephone. The Insured or its agent(s) warrant that they shall make their best
efforts to maintain the electronic recording system on a continuous basis. Nothing, however, in this Rider shall bar the Insured
from recovery where no recording is available because of mechanical failure of the device used in making such recording, or because
of failure of the media used to record a conversation from any cause, or error or omission of any Employee(s) or agent(s) of the
Insured.
SCHEDULE OF SYSTEMS
Any System Utilized by the Insured
2. As used in this Rider, Computer System
means:
(a) computers
with related peripheral components, including storage components, wherever located,
(b) systems
and applications software,
(c) terminal
devices,
(d) related
communication networks or customer communication systems, and
(e) related
Electronic Funds Transfer Systems, by which data are electronically collected, transmitted, processed, stored, and retrieved.
3. In addition to the exclusion in the attached
bond, the following exclusions are applicable to this Insuring Agreement:
(a) loss resulting
directly or indirectly from the theft of confidential information, material or data: and
(b) loss resulting
directly or indirectly from entries or changes made by an individual authorized to have access to a Computer System who acts in
good faith on instructions, unless such instructions are given to that individual by a software contractor (or by a partner, officer
or employee thereof) authorized by the Insured
Page 20
to design, develop, prepare, supply service,
write or implement programs for the Insureds Computer System.
4. The following portions of the attached
bond are not applicable to this Rider:
(a) the initial
paragraph of the bond preceding the Insuring Agreements which reads ...at any time but discovered during the Bond Period.
(b) Section
9-NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
(c) Section
10-LIMIT OF LIABILITY
5. The coverage afforded by this rider applies
only to loss discovered by the Insured during the period this Rider is in force.
6. All loss or series of losses involving
the fraudulent activity of one individual, or involving fraudulent activity in which one individual is implicated, whether or
not that individual is specifically identified, shall be treated as one loss. A series of losses involving unidentified individuals
but arising from the same method of operation may be deemed by the Underwriter to involve the same individual and in that event
shall be treated as one loss.
7. The Limit of Liability for the coverage
provided by this Rider shall be $1,000,000.
8. The Underwriter shall be liable hereunder
for the amount by which one loss shall be in excess of $5,000 (herein called the Deductible Amount) but not in excess of the
Limit of Liability stated above.
9. If any loss is covered under this Insuring
Agreement and any other Insuring Agreement or Coverage, the maximum amount payable for such loss shall not exceed the largest
amount available under any one Insuring Agreement or Coverage.
10. Coverage under this Rider shall terminate
upon termination or cancellation of the bond to which this Rider is attached. Coverage under this rider may also be terminated
or cancelled without canceling the bond as an entirety:
(a) 90 days
after receipt by the Insured of written notice from the Underwriter of its desire to terminate or cancel coverage under this Rider,
or
(b) immediately
upon receipt by the Underwriter of a written request from the Insured to terminate or cancel coverage under this Rider.
The Underwriter shall refund to the Insured
the unearned premium for this coverage under this Rider. The refund shall be computed at short rates if this Rider is terminated
or cancelled or reduces by notice from, or at the insistence of the Insured.
11. Section 4-LOSS-NOTICE-PROOF-LEGAL PROCEEDING
of the Conditions and Limitations of this bond is amended by adding the following sentence:
Proof of Loss resulting from Voice
Instructions or advices covered under this bond shall include Electronic Recording of such Voice Instructions of advices.
Page 21
12. Notwithstanding the foregoing, however,
coverage afforded by this Rider is not designed to provide protection against loss covered under a separate Electronic and Computer
Crime Policy by whatever title assigned or by whatever Underwriter written. Any loss which is covered under such separate Policy
is excluded from coverage under this bond; and the Insured agrees to make claim for such loss under its separate Policy.
13. This rider shall become effective as
of 12:01 a.m. on 05/08/2013 standard time.
RIDER NO. 3
To be attached to and form part of Investment
Company Bond, Bond No. 314-79-17 - 02
In favor of IndexIQ Trust and IndexIQ ETF
Trust
It is agreed that:
1. If the Insured shall, while this Bond
is in force, establish any new funds other than by consolidation or merger with, purchase or acquisition of assets or liabilities
of another institution, such funds shall automatically be covered, hereunder from the date of such establishment without the payment
of additional premium for the remainder of the Bond Period.
2. Notice of any newly established funds
during the Bond Period are to be made to the Underwriter at the earliest practicable moment and prior to the expiration date of
the attached Bond.
3. If the Insured shall, while this Bond
is in force, require an increase in the Limit of Liability of Insuring Agreement (A) Fidelity in order to comply with the
Securities and Exchange Commission Rule 17g-1 of the Investment Company Act of 1940 (17 Code of Federal Regulations § 270.17g-1)
due to an increase in asset size of the currently named funds or via the addition of newly established funds by the Insured under
the Bond , such increase in the Limit of Liability for Insuring Agreement (A) Fidelity (as required) shall automatically
be increased up to the minimum required and mandated by S.E.C. Rule 17g-1, but shall not exceed an each and every loss Limit of
Liability of $2,500,000 hereunder from the date of such increase without the payment of additional premium for the remainder
of the Bond Period.
Page 22
4. Nothing herein contained shall be held
to vary, alter, waive or extend any of the terms, limitations, conditions or agreements of the attached bond other than as above
stated.
5. This rider shall become effective as
of 12:01 a.m. on 05/08/2013 standard time.
INSURED COPY
314-79-17 - 02
INSURED COPY
314-79-17 - 02
Page 23
EXHIBIT B
IndexIQ Trust
Approval of Fidelity Bond
WHEREAS,
Rule 17g-1 under
the Investment Company Act of 1940, as amended (the “1940 Act”), requires each registered management investment company
to maintain a fidelity bond, covering certain officers and employees of the investment company with access to the securities or
funds of the investment company, against larceny and embezzlement, in an amount prescribed by Rule 17g-1(d)(1); and
WHEREAS,
IndexIQ Advisors
LLC (“IndexIQ”) obtained a fidelity bond on behalf of the Trust, for the period from May 8, 2013 to May 8, 2014, in
the amount of $1,000,000 (the “Fidelity Bond”).
NOW, THEREFORE, BE IT
RESOLVED,
that the Board,
including a majority of the Independent Trustees, hereby authorize and direct the proper officers of the Trust, subject to ratification
by the Board, to take such actions as may be necessary to renew the currently effective fidelity bond (the “Fidelity Bond”),
or to obtain a similar Fidelity Bond, for the period May 8, 2013 to May 8, 2014, on terms and conditions comparable to those contained
in the Fidelity Bond with a $1,000,000 limit of liability and a premium of $2,188.00, of which $875.20 is payable by the Trust, and to
increase the amount of such bond as may be necessary to satisfy the requirements of Rule 17g-1(d) under the investment Company
Act of 1940; and it is further
RESOLVED,
that the Amended
and Restated Joint Insurance Sharing Agreement, among the Trust on behalf of each series, IndexIQ Active ETF Trust, and IndexIQ
Trust relating to the utilization of the Fidelity Bond be, and it hereby is, approved and continued; and it is further
RESOLVED,
that the actions
of management with respect to obtaining the Fidelity Bond for the Trust be, and they hereby are, ratified and affirmed; and it
is further
RESOLVED,
that each officer
of the Trust shall be designated an officer pursuant to Rule 17g-1(h) and is authorized to make the proper filings with the U.S.
Securities and Exchange Commission as required by Rule 17g-1.
IndexIQ ETF Trust
Approval of Fidelity Bond
WHEREAS,
Rule 17g-1 under
the Investment Company Act of 1940, as amended (the “1940 Act”), requires each registered management investment company
to maintain a fidelity bond, covering certain officers and employees of the investment company with access to the securities or
funds of the investment company, against larceny and embezzlement, in an amount prescribed by Rule 17g-1(d)(1); and
WHEREAS,
IndexIQ Advisors
LLC (“IndexIQ”) obtained a fidelity bond on behalf of the Trust, for the period from May 8, 2013 to May 8, 2014, in
the amount of $1,000,000 (the “Fidelity Bond”).
NOW, THEREFORE, BE IT
RESOLVED,
that the Board,
including a majority of the Independent Trustees, hereby authorize and direct the proper officers of the Trust, subject to ratification
by the Board, to take such actions as may be necessary to renew the currently effective fidelity bond (the “Fidelity Bond”),
or to obtain a similar Fidelity Bond, for the period May 8, 2013 to May 8, 2014, on terms and conditions comparable to those contained
in the Fidelity Bond with a $1,000,000 limit of liability and a premium of $2,188.00, of which $1,203.40 is payable by the Trust, and
to increase the amount of such bond as may be necessary to satisfy the requirements of Rule 17g-1(d) under the investment Company
Act of 1940; and it is further
RESOLVED,
that the Amended
and Restated Joint Insurance Sharing Agreement, among the Trust on behalf of each series, IndexIQ Active ETF Trust, and IndexIQ
Trust relating to the utilization of the Fidelity Bond be, and it hereby is, approved and continued; and it is further
RESOLVED,
that the actions
of management with respect to obtaining the Fidelity Bond for the Trust be, and they hereby are, ratified and affirmed; and it
is further
RESOLVED,
that each officer
of the Trust shall be designated an officer pursuant to Rule 17g-1(h) and is authorized to make the proper filings with the U.S.
Securities and Exchange Commission as required by Rule 17g-1.
IndexIQ ACTIVE ETF Trust
Approval of Fidelity Bond
WHEREAS,
Rule 17g-1 under
the Investment Company Act of 1940, as amended (the “1940 Act”), requires each registered management investment company
to maintain a fidelity bond, covering certain officers and employees of the investment company with access to the securities or
funds of the investment company, against larceny and embezzlement, in an amount prescribed by Rule 17g-1(d)(1); and
WHEREAS,
IndexIQ Advisors
LLC (“IndexIQ” or the “Investment Advisor”) obtained a fidelity bond on behalf of the Trust, for the period
from May 8, 2013 to May 8, 2014, in the amount of $1,000,000 (the “Fidelity Bond”).
NOW, THEREFORE, BE IT
RESOLVED,
that the Board,
including a majority of the Independent Trustees, hereby authorize and direct the proper officers of the Trust, subject to ratification
by the Board, to take such actions as may be necessary to renew the currently effective fidelity bond (the “Fidelity Bond”),
or to obtain a similar Fidelity Bond, for the period May 8, 2013 to May 8, 2014, on terms and conditions comparable to those contained
in the Fidelity Bond with a $1,000,000 limit of liability and a premium of $2,188.00, of which $109.40 is payable by the Trust, and to
increase the amount of such bond as may be necessary to satisfy the requirements of Rule 17g-1(d) under the investment Company
Act of 1940; and it is further
RESOLVED
, that the Amended
and Restated Joint Insurance Sharing Agreement, among the Trust on behalf of each of its series, IndexIQ ETF Trust and IndexIQ
Trust relating to the utilization of the Fidelity Bond be, and it hereby is, approved and continued; and it is further
RESOLVED,
that the actions
of management with respect to obtaining the Fidelity Bond for the Trust be, and they hereby are, ratified and affirmed; and it
is further
RESOLVED,
that each officer
of the Trust shall be designated an officer pursuant to Rule 17g-1(h) and is authorized to make the proper filings with the U.S.
Securities and Exchange Commission as required by Rule 17g-1.
INDEXIQ TRUST
INDEXIQ ETF TRUST
IQ ACTIVE ETF TRUST
FIRST AMENDED AND RESTATED
FIDELITY BOND AND INSURANCE SHARING AGREEMENT
THIS FIRST AMENDED AND RESTATED FIDELITY BOND AND INSURANCE SHARING AGREEMENT (this Agreement) made and entered into this __ day of March 2013, by and between IndexIQ Trust, IndexIQ ETF Trust and IQ Active ETF Trust (each, a Trust
and, collectively, the Trusts), each an open-end management investment company, on behalf of each of its respective series specified in Appendix A (Funds).
WHEREAS, IndexIQ Advisors LLC (Advisor) acts as investment advisor to each of the Funds; and
WHEREAS, pursuant to the requirement of Rule 17g-1 of the Investment Company Act of 1940, as amended (the 1940 Act), the Trusts, on behalf of each Fund, have obtained fidelity bond coverage as named parties
(Insureds) under a joint insured fidelity bond, as amended from time to time to reflect any additions to Appendix A (Bond); and
WHEREAS, the Insureds, in order to be covered by a single fidelity bond, are required by Rule 17g-1 to be parties to an agreement that establishes the criteria by which premiums and recoveries under the Bond shall be
allocated among the Insureds; and
WHEREAS, the Trusts and the Advisor have entered into, on behalf of their respective trustees, directors and officers, a Mutual Fund/Trustees and Officers/Errors and Omissions Liability Insurance
(T&O/E&O) inclusive of Investment Advisor/Directors and Officers/Errors and Omissions Liability Insurance coverage (D&O/E&O and together with the T&O/E&O, the Insurance); and
WHEREAS, IndexIQ Trust and IndexIQ ETF Trust entered into a Fidelity Bond and Insurance Sharing Agreement on August 9, 2009 to further such goals (the Original Agreement); and
WHEREAS, the Trusts desire to amend and restate the Original Agreement to add IndexIQ Active ETF Trust as a party thereto, in accordance with Section 4 thereof.
NOW, THEREFORE, it is agreed as follows:
1.
Amount of Coverage Maintained
. The amount of fidelity coverage under the Bond shall at all times be at least equal to the total amount of coverage which the Trusts, on behalf of each Fund, would have been required
to provide and maintain individually pursuant to the schedule set forth in paragraph (d) of Rule 17g-1 under the 1940 Act had the Trusts not been a named insured under the Bond. The amount of insurance coverage under the Insurance shall be equal to such
amounts as the Board of Trustees of each Trust and the Advisor determine. The amount of fidelity coverage under the Bond and coverage under the Insurance shall be approved at least annually by each Board of Trustees of the Trusts, including a majority of
those Trustees who are not interested persons of the Trust as defined by Section 2(a)(19) of the 1940 Act.
2.
Allocation of Recoveries
. In the event an actual pecuniary loss is suffered by any two or more of the Insureds under circumstances covered by the terms of the Bond, any recovery under the Bond shall be allocated
among such Insureds as follows:
(a) If the total amount of coverage provided under the Bond exceeds or is equal to the amount of the combined total amount of loss suffered by the Insureds suffering loss, then each such Insured shall be entitled to recover
the amount of its actual loss.
(b) If the amount of loss suffered by each Insured suffering loss exceeds its minimum coverage requirement under Rule 17g-1 under the 1940 Act and the amount of such Insureds combined actual losses exceeds the total
amount of coverage provided under the Bond, then each such Insured shall be entitled to recover (i) its minimum coverage requirement and (ii) to the extent there exists any excess coverage, the proportion of such excess coverage which its minimum
coverage requirements bears to the amount of the combined minimum coverage requirements of the Insureds suffering actual loss:
provided
,
however
, that if the actual loss of any such Insureds is less than the sum of (i) and (ii) above, then
such difference shall be recoverable by the other Insured or Insureds in proportion to their relative minimum coverage requirements.
(c) If (i) the amount of actual loss suffered by any Insured is less than or equal to its minimum coverage requirement, (ii) the amount of actual loss of another Insured or the other Insureds exceeds its or their minimum
coverage requirement or requirements, and (iii) the amount of the combined actual losses of the Insureds exceeds the total amount of coverage provided under the Bond, then any Insured which has suffered an amount of actual loss less than or equal to its
minimum coverage requirement shall be entitled to recover its actual loss. If only one other Insured has suffered actual loss, it shall be entitled to recover the remainder of the amount of the coverage under the Bond. If more than one other Insured has
suffered actual loss in excess of the remaining coverage, then they shall allocate such remaining amount of coverage in accordance with paragraph (b) of this Section 2.
3.
Allocation of Premiums
. No premium shall be paid under the Bond and the Insurance unless the Board of Trustees of each Trust, including a majority of those Trustees who are not interested persons of the
Trust as defined by Section 2(a)(19) of the 1940 Act, shall approve the portion of the premium to be paid by such Trust, on behalf of each of its Funds. The premium payable on the Bond shall be allocated between the Trusts as determined by the Boards of
Trustees of the Trusts.
4.
Amendment
. Each party hereby consents to additional Funds and investment companies advised or managed by IndexIQ Advisors LLC being named as a joint insured under the Bond, the Insurance and this Agreement.
Appendix A shall be amended when necessary to reflect the addition of new Funds and investment companies. Otherwise this Agreement may not be amended or modified in any manner except by a written agreement executed by the parties.
5.
Filing with the Commission
. A copy of this Agreement and any amendment thereto shall be filed with the Securities and Exchange Commission within 10 days after the execution thereof.
6.
Applicable Law
. This Agreement shall be construed and the provisions thereof interpreted under and in accordance with the laws of the State of New York.
7.
Notices
. All Notices and other communications hereunder shall be in writing and shall be addressed to the appropriate party c/o IndexIQ Advisors LLC, 800 Westchester Avenue, Suite N611, Rye Brook, NY 10573.
8.
Limitations of Liability of Trustees and Shareholders
. A copy of the Declaration of Trust of the Trusts, and any amendments thereto, are on file with the Secretary of State of Delaware, and it is hereby agreed that
this Agreement is executed on behalf of the Trustees of the Trusts as Trustees and not individually and that the obligations of this Agreement are not binding upon any of the Trustees, officers or shareholders of the Trusts individually but are binding
only upon the assets and property of the Trusts.
IN WITNESS WHEREOF IndexIQ Trust and IndexIQ ETF Trust and IQ Active ETF Trust, on behalf of each of their respective Funds, have caused this Agreement to be executed as of the day and year first written.
|
IndexIQ Trust
,
|
on behalf of each of its Funds
|
|
|
By:
|
/s/ Gregory Bassuk
|
|
Name: Gregory Bassuk
|
|
Title: Secretary
|
|
|
IndexIQ ETF Trust
,
|
on behalf of each of its Funds
|
|
|
By:
|
/s/ Gregory Bassuk
|
|
Name: Gregory Bassuk
|
|
Title: Secretary
|
|
IQ Active ETF Trust
,
|
on behalf of each of its Funds
|
|
|
By:
|
/s/ Gregory Bassuk
|
|
Name: Gregory Bassuk
|
|
Title: Secretary
|
APPENDIX A
FUNDS
AS OF MARCH 1, 2013
(* indicates active)
INDEXIQ Fund TRUST
Live Funds
IQ ALPHA Hedge Strategy Fund
Group Mutual 2
IQ Managed Futures Income Fund
Group Mutual 2
IQ Fund of Hedge Fund Mutual Fund
INDEXIQ ETF
TRUST
Live Funds
IQ Hedge Multi-Strategy Tracker ETF (QAI)
IQ Hedge Macro Tracker ETF (MCRO)
IQ Hedge Market Neutral Tracker ETF (QMN)
IQ Real Return ETF (CPI)
IQ Global Resources ETF (GRES)
IQ Merger Arbitrage ETF (MNA)
IQ Australia
Small Cap ETF (KROO)
IQ Canada Small Cap ETF (CNDA)
IQ Global Agribusiness Small Cap ETF (CROP)
IQ Global Oil Small Cap ETF (IOIL)
IQ U.S. Real Estate Small Cap ETF (ROOF)
GroupPassive 1
IQ Hedge Event-Driven Tracker ETF
IQ Hedge Long/Short Tracker ETF
GroupPassive 2
IQ Hedge Equal Weight Multi-Strategy Tracker ETF
IQ Hedge Asset Weight Multi-Strategy Tracker ETF
IQ Hedge Inverse Multi-Strategy Tracker ETF
IQ Hedge Strategy One Tracker ETF
IQ Hedge Strategy Two Tracker ETF
IQ Hedge Strategy Three Tracker ETF
IQ Hedge Dedicated Short-Bias Tracker ETF
IQ Hedge Market Directional Tracker ETF
IQ Hedge Absolute Return Tracker ETF
IQ Hedge Relative Value Tracker ETF
IQ Hedge Distressed Tracker ETF
IQ Hedge Convertible Arbitrage Tracker ETF
IQ Hedge Managed Futures Tracker ETF
IQ ARB Global Real Estate ETF
IQ ARB Global Infrastructure ETF
GroupPassive 3
IQ Hong Kong Small Cap ETF
IQ South Korea Small Cap ETF
IQ Taiwan Small Cap ETF
IQ Natural Gas Small Cap ETF
IQ Global Gold Small Cap Equity ETF
GroupPassive 4
IQ Mexico Small Cap ETF
IQ Asian Tigers ETF
IQ Asian Tigers Consumer ETF
IQ Asian Tigers Small Cap ETF
IQ Asia Pacific ex-Japan Small Cap ETF
IQ Australia Mid Cap ETF
IQ Canada Mid Cap ETF
IQ Japan Mid Cap ETF
IQ Emerging Markets Mid Cap ETF
IQ Global Precious Metals Small Cap ETF
GroupPassive 5
IQ Bull Large Cap U.S. Equity
IQ Bull Small Cap U.S. Equity
IQ Bull International Equity
IQ Bull Emerging Markets Equity
IQ Bull Non-Financial U.S. Equity
IQ Bull Industry Leaders U.S. Equity
GroupPassive 6
IQ Fastest Growing Companies ETF
IQ Innovation Leaders ETF
GroupPassive 7
IQ Covered Call Large Cap ETF
IQ Collared Large Cap ETF
IQ Options Bull ETF
IQ Options Bear ETF
IQ Commercial Paper Black Swan ETF
IQ Large Cap Black Swan ETF
INDEXIQ ACTIVE ETF TRUST
Group Active 1
IQ Bear Large Cap U.S. ETF
IQ Bear Small Cap U.S. ETF
IQ Bear International ETF
IQ Bear Emerging Markets ETF
Group Active 2
IQ Bull Large Cap U.S. ETF
IQ Bull Small Cap U.S. ETF
IQ Bull International ETF
IQ Bull Emerging Markets ETF
Group Active 3
IQ Bear Technology Leaders ETF
IQ Bear Industry Leaders ETF
IQ Bear Sector 1 ETF
IQ Bear Sector 2 ETF
IQ Bear Sector 3 ETF
IQ Bear Sector 4 ETF
IQ Bear Sector 5 ETF
IQ Bear Sector 6 ETF
IQ Bear Sector 7 ETF
IQ Bear Sector 8 ETF
IQ Bear Sector 9 ETF
IQ Bear Real Estate ETF
IQ Bear Agribusiness ETF
IQ Short Alpha ETF
IQ Long/Short Alpha ETF
IQ Long Alpha ETF
IQ Absolute Return Alpha ETF
IQ Relative Value Alpha ETF
IQ Short Bias Alpha ETF
IQ Risk Parity ETF
IQ Sector Rotation Alpha ETF
IQ Asset Rotation Alpha ETF
IQ Fixed Income Rotation Alpha ETF
IQ Aggregate Fixed Income Alpha ETF
IQ Government Fixed Income Alpha ETF
IQ Corporate Fixed Income Alpha ETF
IQ High Yield Fixed Income Alpha ETF
IQ Convertible Fixed Income Alpha ETF
IQ Asset-Backed Fixed Income Alpha ETF
IQ Composite 1 Fixed Income
Alpha ETF
IQ Composite 2 Fixed Income Alpha ETF
IQ Composite 3 Fixed Income Alpha ETF
IQ International Fixed Income Alpha ETF
IQ Global Fixed Income Alpha ETF
IQ Hedge Fund ETF
IQ Low Volatility Large Cap ETF
IQ Low Volatility Small Cap ETF
IQ Low Volatility International ETF
IQ Low Volatility Emerging Markets ETF
IQ Global Equity ETF
Group Active 4
IQ Bull Large Cap U.S. Equity
IQ Bull Small Cap U.S. Equity
IQ Bull International Equity
IQ Bull Emerging Markets Equity
IQ Bull Non-Financial U.S. Equity
IQ Bull Industry Leaders U.S. Equity
IQ Covered Call Large Cap ETF
IQ Collared Large Cap ETF
IQ Options Bull ETF
IQ Options Bear ETF
IQ Commercial Paper Black Swan ETF
IQ Large Cap Black Swan ETF
IQ Managed Futures ETF
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