Thursday, March 29, 2012
Teucrium Adds A New Fund to its Farm
Reported by Erin Kello
has added a new fund-of-funds to it's stable of products. Today the company launched the Teucrium Agricultural Fund
, which offers exposure to agricultural commodities in a single fund of ETP funds.
on the launch.
“TAGS was designed as a fund of ETPs to allow investors to allocate investments in the four core agricultural commodities without having to rebalance their exposure themselves. By using the fund of ETPs structure, we are not only providing investors with a greater degree of diversification, we are providing them with the same unique investment methodology used in each of the underlying Teucrium commodity funds. Investors now have a way to invest in a next-generation agricultural basket ETP that may be a better option than currently available alternatives.” said Sal Gilbertie
, president and chief investment officer of Teucrium.
Company Press Release
Santa Fe, NM – March 28, 2012 – Teucrium Trading, LLC (“Teucrium”), (www.teucrium.com), the first company to introduce single agricultural commodity Exchange Traded Products (“ETPs”) in the United States, and the sponsor of the Teucrium Family of Funds, today announced the launch of the Teucrium Agricultural Fund (NYSE: TAGS), the first ETP to offer exposure to agricultural commodities in a single fund of ETP funds.
Company officials said the new fund, which will trade on the New York Stock Exchange Arca, will invest in corn, soybeans, wheat and sugar, by holding an equal weighting of existing Teucrium single commodity funds, namely, the Teucrium Corn Fund (NYSE:CORN), Teucrium Soybean Fund (NYSE: SOYB), Teucrium Sugar Fund (NYSE: CANE) and Teucrium Wheat Fund (NYSE: WEAT).
In commenting on the announcement, Sal Gilbertie, President and Chief Investment Officer of Teucrium Trading, LLC, said, “TAGS was designed as a fund of ETPs to allow investors to allocate investments in the four core agricultural commodities without having to rebalance their exposure themselves. By using the fund of ETPs structure, we are not only providing investors with a greater degree of diversification, we are providing them with the same unique investment methodology used in each of the underlying Teucrium commodity funds. Investors now have a way to invest in a next-generation agricultural basket ETP that may be a better option than currently available alternatives.”
Gilbertie said TAGS, which like its underlying next generation funds has been designed to reduce contango or the cost of carrying and rolling futures, will be rebalanced regularly to maintain the 25% weighting in CORN, SOYB, CANE and WEAT.
“With a global population of 7 billion-plus people, it’s clear that the need for commodities, in particular agricultural commodities, has never been more pressing,” Gilbertie said. “As the global population continues to expand and emerging markets continue to prosper, usage of agricultural commodities such as corn, soybeans, sugar and wheat as food for human consumption, animal feed and for energy is expected to continue to grow. Never has there been a better time to consider investing in agricultural commodities.”
According to Gilbertie, “As a liquid and transparent investment vehicle for commodities, TAGS offers a very viable solution for Registered Investment Advisors, hedge funds, institutional and individual advisors who want to add commodities to their portfolios without investing directly in futures. Additionally, TAGS offers easy accessibility through the New York Stock Exchange.
The Teucrium Agricultural Fund (NYSE: TAGS) will be managed by Gilbertie and Kelly Teevan, both of whom have spent their professional careers trading commodities.
TAGS has no operating history, so there is no performance history to serve as a basis for you to evaluate an investment in the Trust. Investing in the Underlying Funds (CORN, SOYB, CANE and WEAT) subjects TAGS to the risks of the corn, wheat, soybean, and sugar markets, and this could result in substantial fluctuations in the price of shares of TAGS. Unlike mutual funds, TAGS generally will not distribute dividends to Shareholders.
Investors may choose to use TAGS as a means of investing indirectly in corn, wheat, soybeans, and sugar, and there are risks involved in such investments and activities.
About Teucrium Trading, LLC
Teucrium Trading, LLC (Teucrium) is an issuer of single-commodity-focused next-generation ETPs. Teucrium designs investment vehicles that include transparency via the intraday indicative value (IIV), a publicly published valuation of the fund’s holdings provided by the NYSE, updated every 15 seconds as the ETP trades throughout the day. With today’s ever-evolving commodities markets’ landscape, Teucrium believes it has the expertise to deliver ETPs for liquid investing and hedging activities without the use of leverage. For more information, please visit: www.teucrium.com.
Each Teucrium Fund (“Fund”) is a commodity pool that will issue shares that may be purchased and sold on the NYSE Arca. The Funds are series of the Teucrium Commodity Trust, a Delaware statutory trust organized on September 11, 2009. The Funds are managed and controlled by the Sponsor, Teucrium Trading, LLC. The Sponsor is a limited liability company formed in Delaware on July 28, 2009 that is registered as a commodity pool operator (“CPO”) with the Commodities Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA.”)
The Funds have a limited operating history, meaning there is little performance history that might serve as a basis to evaluate an investment in the Trust. Investing in a Fund subjects an investor to the risks of the applicable commodity market, which investment could result in substantial fluctuations in the price of Fund shares. Unlike mutual funds, the Funds generally will not distribute dividends to shareholders. The Sponsor has limited experience operating commodity pools; a commodity pool is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Investors may choose to use a Fund as a vehicle to hedge against the risk of loss and there are risks involved in hedging activities. Commodities and futures generally are volatile and are not suitable for all investors. The Funds are not mutual funds or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder. For a complete description of the risks associated with the Funds, please refer to the applicable prospectus.
Shares of the Funds are not FDIC insured, may lose value and have no bank guarantee. Foreside Fund Services, LLC is the distributor for the Teucrium Funds. The Teucrium Funds have a patent pending on the methodology employed by the Funds.
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