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Continuing Innovation Allows Exposure to Gold in Different Currency Terms
BETHESDA, Md., Feb. 11, 2014 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today the launch of four industry-first ETFs – providing gold exposure in different currency terms through a 40 Act structure – which will begin trading on Wednesday, February 12, 2014:
These ETFs are sub-advised by Treesdale Partners, a New York, New York-based registered investment advisor with an established expertise in managing fixed income-based and currency/commodity-based alternative investment products. Additionally, Dennis Gartman, editor and publisher of The Gartman Letter, will lend his institutional insight on educating advisors and investors about the AdvisorShares gold ETF suite as well as the merits of trading commodities in different currency terms during various market periods.
The investment objectives of the AdvisorShares Gartman Gold ETFs seek to provide positive returns by utilizing their respective currencies to invest its assets in the gold market. In pursuing the GEUR, GGBP and GYEN investment strategies, Treesdale will provide access to a popular investment approach from Mr. Gartman: using different currencies to fund a gold position. GEUR utilizes the European Union's Euro; GGBP utilizes the British Pound; GYEN utilizes the Japanese Yen. The foreign currencies are obtained through the sale of either exchange-traded currency futures or "over the counter" foreign exchange forward contracts. The funds alternate currency exposure seeks to neutralize U.S. dollar risk, and assesses the dollar and corresponding foreign currency yield curve, determining the most positive net effect to purchase gold in different currency terms.
The investment objective of the AdvisorShares International Gold ETF (GLDE) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market. In pursuing the GLDE investment strategy, Treesdale will provide access to currency diversification, rather than using the U.S. dollar exclusively, actively allocating its underlying gold positions to seek consistently attractive valuations. Along with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialized portfolio manager with liquidity, transparency, and operational and tax efficiency. Uncommonly, the four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.
"Dennis Gartman's widely recognized analysis and commentary among leading corporate, financial and trading institutions is well-known, and we believe Treesdale adds another deeply experienced portfolio manager to the AdvisorShares active ETF suite," said Noah Hamman, chief executive officer of AdvisorShares. "We are pleased to partner with their combined expertise in bringing more innovative investment solutions to the active ETF marketplace."
Ade Odunsi, managing director of Treesdale and portfolio manager of GEUR, GGBP, GYEN and GLDE added, "By choice or not, many gold investors today explicitly express that they expect the value of gold to increase relative to the U.S. dollar. As a result, investors are exposed to risk factors that affect the supply and demand for gold, as well as the various factors that might impact the value of the U.S. dollar on international currency markets. With these active ETFs, we believe investors now have unprecedented access to efficiently hold gold in different currency terms to avoid undesired and concentrated exposure to a single currency, such as the U.S. dollar."
"Throughout the course of my career, I've discovered first-hand that a diligent and comprehensive approach to trading and investing can deliver positive returns to a diversified investment portfolio," said Mr. Gartman. "Among those lessons, I've learned that owning different commodities, especially gold, in different currency terms can provide added-value for any investor's alternative allocation."
For media inquiries requesting more information on AdvisorShares, please contact Ryan Graham at 202-684-6442 or firstname.lastname@example.org. For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).
Please visit www.advisorshares.com to register for free weekly economic commentary. For educational insight into the active ETF marketplace, visit www.alphabaskets.com, follow @AdvisorShares on Twitter and 'Like' us on Facebook. Every Thursday at 4:00pm Eastern time, AdvisorShares hosts an educational conference call for Financial Professionals featuring our portfolio managers and leading investment industry experts. On Thursday, 2/13/2014, the call will feature Ade Odunsi and Dennis Gartman to discuss the actively managed gold ETFs-Dial: 1-800-977-8002; Code: 777534#
AdvisorShares is one of the leading providers of actively managed ETFs. As of 2/5/2014, AdvisorShares offers 19 active ETFs currently trading with approximately $1,235,000,000 of assets under management. AdvisorShares provides educational support to help financial advisors and investors understand the benefits of actively managed ETFs and their underlying investment strategies.
About Treesdale Partners, LLC
Treesdale is a New York, New York-based registered investment adviser, founded in 2002 that provides investment advisory services and manages both fixed income-based and currency/commodity-based alternative investment products. Please visit www.treesdalellc.com for more information.
About Dennis Gartman
Mr. Dennis Gartman has been publishing his daily commentary, The Gartman Letter, since 1987. Over the years, he has also conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms, central banks, and U.S. government entities. In recent years, Mr. Gartman has been a frequent guest on leading financial television and radio networks.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Other Fund risks include: counterparty credit risk; currency risk, derivatives risk, early closing risk, equity risk, Exchange-Traded Vehicle risk, geographic concentration risk, gold risk, liquidity risk, regulatory risk, tax risk trading risk. Please see the prospectus for detailed information regarding risk.
Exchange-traded futures are futures contracts to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date. Currency futures are traded on exchanges that provide regulation in terms of centralized pricing and clearing. An 'Over-the-counter' forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. Forward contracts do not trade on a centralized exchange and are therefore regarded as over-the-counter (OTC) instruments. Drawdown is the peak-to-trough decline during a specific period of an investment, fund or commodity. The Yield Curve is a graph that plots the yields of similar-quality bonds against their maturities, ranging from shortest to longest. An option is a privilege, sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. A call option is a contract that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period. A put option is a contract that gives the owner of the option the right to sell a specified amount of the asset underlying the option at a specified price within a specified time.
Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.
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