SERIES7
delta global shipping portfolio series 7
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DAILY DATA
as of
11/20/09
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Portfolio Status
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Secondary
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Offer Price1
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--
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Bid Price2
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$4.465300
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Liquidation Price3
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$4.465300
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1 The "offer" price represents the net asset value of one unit
of a trust plus a transactional sales charge.
2 The "bid" price represents the net asset value of one unit
of a trust excluding deferred sales charge.
3 The "liquidation" price represents the net asset value of
one unit of a trust and includes any front-end and deferred sales charges accounted
for if investors liquidate units.
4 The Historical Annual Dividend Distribution is as of date of deposit. The amount of distributions of the Trust may be lower or greater than the above-stated
amount due to certain factors that may include, but are not limited to, a change
in the dividends paid by issuers, a change in Trust expenses or the sale or maturity
of securities in the portfolio. Fees and expenses of the Trust may vary as a result
of a variety of factors including the Trust's size, redemption activity, brokerage and
other transaction costs and extraordinary expenses.
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DEPOSIT INFORMATION
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Inception Date
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8/5/2008
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Mandatory Termination Date
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8/18/2010
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NASDAQ Ticker Symbol
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CDSHGX
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Inception Unit Price
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$10.000000
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Inception Bid Price
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$9.900000
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Inception Liquidation Price
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$9.655000
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Historical Annual Dividend Distribution4
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--
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Deferred Sales Charge Dates
5
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May 2009
Jun 2009
Jul 2009
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| CUSIP - Monthly-Cash |
18386V461 |
| CUSIP - Monthly-Reinvest |
18386V479 |
| CUSIP - Monthly-Fee/Cash |
18386V487 |
| CUSIP - Monthly-Fee/Reinvest |
18386V495 |
5 Early redemption of units will still cause payment of deferred sales charge.
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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
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INVESTMENT OBJECTIVE
The Shipping Trust seeks to provide a high level of income with a secondary objective of providing the potential for capital growth.
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PRINCIPAL INVESTMENT STRATEGY
Under normal circumstances, the trust will invest at least 80% of the value of its assets in stocks of companies that derive their main source of revenue from the maritime shipping of crude oil, dry bulk and container cargo.
The sponsor has selected Delta Global Advisors, Inc. (“Delta Global”) to serve as the trust’s portfolio consultant. The portfolio consultant is responsible for assisting the sponsor with the selection of the trust’s portfolio and providing ongoing support related to the securities in the portfolio.
Information Regarding Shipping Companies
According to Delta Global, the global transportation of goods typically increases each year. As the world economy consumes finished goods made in Asia, Delta Global believes those same economies will require an increasing amount of raw materials, much of which must be imported. An increasing cost component of the finished goods produced in Asia is the transportation of raw materials and the shipping of finished goods to consumer markets. Delta Global believes that demand for goods in the global maritime routes will continue to fuel growth in the tanker, container, and dry bulk industries.
Shipping Capacity
According to Delta Global, in the oil tanker industry, the phasing out of single hull tankers is scheduled to be complete by 2010. Delta Global believes a strong supply of new ships coming to market is keeping tanker rates volatile. On the other hand, a shortage in bulk dry vessels that ship iron ore and other essential commodities is leading to significantly higher shipping rates in this industry. Meanwhile, Delta Global believes the container industry remains fairly well-balanced, with strong demand having recently absorbed new shipping supply.
Shipping Rates
Even in the context of generally increasing supply in the oil tankers, containers, and dry bulk shipper industries, Delta Global believes freight rates remain strong, reflecting surging shipping demand and continued economic growth around the globe.
Not unlike what helped drive the commodity boom in recent years, Delta Global believes some of today’s remaining shipping bottlenecks result from a lack of new investment in the 1990’s. Gathering, refining, storage and transport of commodities were contributing factors leading to all time highs in commodities prices; Delta Global believes the finished and raw good transport sector may be at a similar inflection point.
As with any similar investments, there can be no guarantee that the objective of the trust will be achieved. Additionally, there is no guarantee that the shipping industry or stocks of companies in the shipping industry will perform well or that the trust will replicate the future performance of the shipping industry as a whole.
See “Investment Risks” in Part A of the prospectus for a discussion of the risks of investing in the trust.
See “Investment Policies” in Part B of the prospectus for more information.
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SELECTION CRITERIA
The sponsor has selected securities of companies that derive their main source of revenue from the maritime shipping of crude oil, dry bulk and container cargo. The portfolio is diversified with companies that should benefit from stable or increasing shipping rates based upon a growing global economy and a general tightness of shipping capacity worldwide. The selection methodology is based on a bottom-up process that evaluates the fundamental and technical attributes of each portfolio security.
Delta Global Advisors, Inc.
Delta Global Advisors, Inc. is a federally registered investment adviser. Delta Global’s founder and president, Charles “Chip” Hanlon, is a contributing writer for TheStreet.com and a widely-followed authority on foreign markets, currencies and commodities. Delta Global is focused on providing specialized global investment strategies and consulting on specialized investment themes with institutional clients. In addition to receiving a portfolio consulting fee, the trust pays Delta Global a licensing fee for the use of its intellectual property.
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RISKS AND OTHER CONSIDERATIONS
This Trust is not being offered for sale. This data is for informational purposes only.
As with all investments, you can lose money by investing in this trust. The trust also might not perform as well as you expect. This can happen for reasons such as these:
- Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
- The sponsor does not actively manage the portfolio. The trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
- Share prices or dividend rates on the securities in the trust may decline during the life of the trust. There is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
- The trust invests in American Depositary Receipts (“ADRs”) and foreign securities. The trust’s investment in ADRs and foreign securities presents additional risk. ADRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
- The trust may invest in companies that are considered to be passive foreign investment companies (“PFICs”). In general, PFICs are certain non-U.S. corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income. As a result of an investment in PFICs, the trust could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is distributed to its unitholders in a timely manner. The trust will not be able to pass through to its unitholders any credit or deduction for such taxes.
- The trust includes securities issued by companies headquartered or incorporated in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk.
- The trust includes securities whose value is dependent on currency exchange rates. The U.S. dollar value of these securities will vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
- The trust includes securities issued by companies in the shipping industry. Companies in the shipping industry are subject to volatile fluctuations in the price and supply of energy fuels, steel, raw materials and other products transported by containerships. In addition, changes in seaborne transportation patterns, weather patterns and events including hurricane activity, commodities prices, international politics and conflicts, port congestion, canal closures, embargoes and labor strikes can significantly affect companies involved in the maritime shipping of crude oil, dry bulk and container cargo.
- The trust invests in stocks issued by small-capitalization and mid-capitalization companies. These stocks customarily involve more investment risk than stocks of larger capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
- Inflation may lead to a decrease in the value of assets or income from investments.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
UITs are fixed and not actively managed. Investors can lose some or all of their investment in this Trust. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. There is no guarantee that this portfolio will achieve its investment objective. The economic condition of the issuers of the securities in this portfolio as well as the stock market, in general, may worsen and therefore reduce the value of the units of the portfolio.
This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios at the applicable sales charge, if available. There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next. Units of certain portfolios may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult your attorney or tax advisor regarding tax consequences associated with the purchase of units. Claymore Securities, Inc. does not offer tax advice.
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Investors should carefully consider the investment objectives and policies, risk considerations, charges
and ongoing expenses of any investment product before investing. The prospectus contains this and other
relevant information. Please read the prospectus carefully before you invest. To obtain a prospectus,
please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle,
Illinois 60532, 800-345-7999, or download one by accessing the Literature section
of this website.
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
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