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Jefferies Announces Launch on NYSE Arca of First Exchange Traded Fund Based on the New Thomson Reuters / Jefferies CRB-EQ Series of Indices
Monday, October 05, 2009 9:54 AM


(Source: Business Wire)trackingJefferies 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.



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