SERIES1
alphashares china 50 portfolio series 1
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DAILY DATA
as of
3/19/10
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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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$9.910500
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Liquidation Price3
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$9.665500
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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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9/16/2009
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Mandatory Termination Date
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9/21/2011
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NASDAQ Ticker Symbol
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CACHAX
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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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Jun 2010
Jul 2010
Aug 2010
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| CUSIP - Monthly-Cash |
18387F721 |
| CUSIP - Monthly-Reinvest |
18387F739 |
| CUSIP - Monthly-Fee/Cash |
18387F747 |
| CUSIP - Monthly-Fee/Reinvest |
18387F754 |
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 AlphaShares China 50 Portfolio, Series 1 ("Trust") seeks to maximize total return through capital appreciation.
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PRINCIPAL INVESTMENT STRATEGY
The Sponsor, with the assistance of AlphaShares, LLC (“AlphaShares”), has selected a diversified list of the largest companies in China that offers investors the possibility of risk-controlled, liquid exposure to China’s potential economic growth. AlphaShares believes that these companies, which include some of the largest companies in the world, are most likely to benefit from economic growth in China. Many economists believe China will shortly become the second-largest economy in the world, behind only the United States. AlphaShares believes that U.S. investors are, on average, greatly underexposed to investments in China. Considering that China has become, and will continue to be, one of the principal drivers of global economic growth for the 21st century, AlphaShares believes investors should increase their exposure to China beyond the 2% weight that it carries in certain broad global equity indexes.
The Sponsor has selected AlphaShares to serve as the Trust’s portfolio consultant. The portfolio consultant is responsible for assisting
the Sponsor with the selection of the Trust portfolio and providing ongoing support related to the securities in the portfolio.
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 Chinese market or individual securities of Chinese companies will perform well or that the trust will replicate the future performance of the Chinese market as a whole. See “Investment Risks” in Part A of the prospectus for a discussion of the risks of investing in the Trust.
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SELECTION CRITERIA
The Trust portfolio is a modified capitalization-weighted selection of the 50 largest and most liquid Chinese equity securities by float-adjusted capitalization that are available to foreign investors. Beginning with an initial universe of over 800 stocks, AlphaShares assists the Sponsor in screening out small and illiquid shares and shares unavailable to foreign investors. A proprietary modified capitaliziation-weighting methodology is then applied to ensure a diversified portfolio. To ensure investability, only H-Shares and Red-chips trading in Hong Kong, and American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) trading primarily in New York are eligible for inclusion in the Trust portfolio.
AlphaShares, LLC
AlphaShares, LLC is a federally registered investment adviser dedicated to providing investors with strategies and products that allow them to participate in China’s potential economic boom. The Chief Investment Officer of AlphaShares is world-renowned Princeton University economist, Dr. Burton G. Malkiel. Author of the classic, A Random Walk Down Wall Street, Dr. Malkiel’s latest book, From Wall Street to the Great Wall, details how investors can tap into the growth opportunities in China. In addition to receiving a portfolio consulting fee, the Trust pays AlphaShares 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 may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. 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.
- Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. In the last year, economic activity has declined across all sectors of the economy, and the United States is experiencing increased unemployment. The current economic crisis has affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading economic countries to combat the economic crisis; however, the impact of these measures is not yet known and cannot be predicted.
- The Trust invests in a foreign securities and ADRs/GDRs. The Trust’s investment in foreign securities and ADRs/GDRs presents additional risk. ADRs/GDRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, 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 includes securities issued by companies headquartered or incorporated in China and Hong Kong. As a result, political, economic or social developments in China and Hong Kong may have a significant impact on the securities included in the Trust. See “Investment Risks” in Part A of the prospectus for addditional information about the risks of investing in companies headquartered or incorporated in China and Hong Kong.
- 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 may be dependent on currency exchange rates. The U.S. dollar value of these securities may 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 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 in the financial sector. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments.
- The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities 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.
- 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.
- Inflation may lead to a decrease in the value of assets or income from investments.
- 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.
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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