Jefferies today announced the Jefferies | TR/J CRB Global Commodity Equity Index Fund, an equity-based exchange traded fund (ETF) that tracks the overall performance of a commodity equity index. The ETF trades on NYSE Arca, Inc. under the ticker symbol “CRBQ.”
For more than 50 years, the Thomson Reuters / Jefferies CRB Index (the “CRB Index”) has served as a widely recognized measure of the global commodity markets. Building upon the history and reputation of the CRB Index, the new group of indices (the “CRB-EQ Indices”) will offer investors unique, simplified benchmarks for globally traded equities of companies that are principally engaged in the production and distribution of commodities and commodity-related products and services in the agriculture, industrial metals, energy and precious metals sectors. The CRB-EQ Indices include a composite index on which the first new ETF is based.
These new ETFs will seek investment results that replicate as closely as possible the price and yield performance of the CRB-EQ Indices, before fees and expenses.
Adam De Chiara, Co-President of Jefferies Asset Management, LLC, said, “Unlike many futures-based commodity ETFs, potential new futures regulation should not impact the ability of these ETFs to issue shares. Additionally, there is no Schedule K-1 to file, and, since these ETFs are not based on futures, they avoid the cost and complexity of continually buying and selling expiring futures contracts. We believe that the new ETFs will provide much-needed capitalization for expanding global commodity production. That should be good for consumers, good for producers and good for the global economy."
Art Hogan, Equity Product Manager and Chief Market Strategist at Jefferies, further commented, “The introduction of this ETF is notable on a number of levels. Not only is it the first investable equity product for the CRB, it’s also the first in a series of commodity-related funds based on these new equity indices, and the first ETF under the Jefferies brand.”
ALPS Advisors, Inc. is the investment adviser for the new ETF, and Arrow Investment Advisors, LLC is the investment sub-adviser. ALPS Distributors, Inc. is the Distributor of the ETF. ALPS Fund Services, Inc. will provide administration, compliance, creative services, fund accounting, legal, marketing, tax administration, transfer agency and shareholder services. S-Network Global Indexes, LLC is the index provider for the CRB-EQ group of indices. Jefferies and Thomson Reuters are brand licensors for the CRB-EQ indices and for the new ETF.
Jefferies, a major global securities and investment banking group, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com). For more information about these ETFs, please visit www.jamfunds.com.
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Investors should consider the following risk factors and special considerations associated with investing in the ETF, which may cause you to lose money. The ETF is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified ETF. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified ETF. A principal risk of investing in the ETF is equity risk, which is the risk that the value of the securities held by the ETF will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the ETF participate or factors relating to specific companies in which the ETF invests. The ETF’s investments in non-U.S. issuers involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of ETF’s investments or prevent the ETF from realizing the full value of its investments. The ETF is new and has a limited operating history. The CRB-EQ Index measures the performance of equity securities of companies engaged in the production and distribution of commodities and commodity-related products. The CRB-EQ Index does not measure the performance of direct investment in the underlying commodities and, therefore, may not move in the same direction and to the same extent as the underlying commodities. See the section “Additional Risks” in the prospectus for additional risk factors.
S-Network Global Indexes, LLC is the Index Provider. The Index Provider is not affiliated with the ETF Trust, the Investment Adviser, the Sub-Adviser or the Distributor. The Index Provider is the designer of the construction and methodology for each underlying index and owns the service mark or trademark “In-the-Ground.” “Thomson,” “Thomson Reuters,” “Reuters” and “CRB” are service marks or trademarks of Reuters America LLC, a Thomson Reuters company, or its affiliates (“Thomson Reuters”). “Jefferies” is a service mark or trademark of Jefferies Financial Products, LLC or its affiliates (“Jefferies”). Neither Thomson Reuters nor Jefferies is responsible for the descriptions of the underlying indices or ETFs that appear herein. Thomson Reuters and Jefferies are not affiliated with the Index Provider, the Trust, the Investment Adviser, the Sub-Adviser or the Distributor.
Shares are not individually redeemable and owners of the Shares may acquire those shares from the ETF and tender those shares for redemption to the ETF in Creation Units only, typically consisting of aggregations of 50,000 shares.
An investor should consider the ETF’s investment objective, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the ETF. For more complete information about the ETF or to obtain a prospectus, call 1-866-675-2639 or 1-877-526-9298 or visit www.alpsetfs.com. Please read the prospectus carefully before investing.
Tom Tarrant, 203-708-5989
Jefferies International Ltd
Desiree Maghoo, 44 20 7029 8085
Josh Passman, 212-279-3115, x203
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