Claymore Launches First Socially Responsible ETF Based on Sudan Divestment Issue
25 Juni 2007 - 3:30PM
Business Wire
Claymore Securities today launched the Claymore/KLD Sudan Free
Large-Cap Core ETF (AMEX: KSF) on the American Stock Exchange. The
Claymore/KLD Sudan Free Large-Cap Core ETF tracks the KLD Large Cap
Sudan Free SocialSM Index, which is the first socially responsible
index tied to the issue of Sudan divestment. �Claymore Securities
is dedicated to providing financial advisors and their clients with
the investment choices they want,� said Christian Magoon, Senior
Managing Director, Claymore Securities. �By partnering with KLD,
the recognized index provider for socially responsible investing,
Claymore is offering investors the first ETF based on an index with
a Sudan-free mandate in the index methodology.� �The new KLD Sudan
Free Large Cap Social Index is the result of institutional and
retail investors� desire for Sudan-free investment products,� said
Thomas Kuh, Managing Director of KLD Research & Analytics, Inc.
�The grassroots efforts of citizens who care deeply about the
crisis in Darfur have helped bring about new legislative mandates
and socially responsible investing strategies to eliminate
corporate support of Sudan�s current regime.� Claymore/KLD Sudan
Free Large-Cap Core ETF (AMEX: KSF) seeks investment results that
correspond generally to the performance, before the Fund�s fees and
expenses, of the KLD Large Cap Sudan Free Social Index. The index
is comprised of a subset of stocks in the Russell 1000� Index with
market capitalizations generally greater than $1 billion and that
meet KLD Research & Analytics� screens for environmental,
social, and governance factors and involvement in Sudan. Business
involvement in Sudan for which the KLD Large Cap Sudan Free Social
Index screens includes: Owns or controls property or assets in
Sudan Has employees or facilities in Sudan Provides goods or
services to companies domiciled in Sudan Obtains goods or services
from Sudan Has distribution agreements with companies domiciled in
Sudan Issues credits or loans to companies domiciled in Sudan
Purchases goods or commercial paper issued by the Government of
Sudan The Claymore/KLD Sudan Free Large-Cap Core ETF will normally
invest at least 90% of its total assets in common stock and ADRs
that comprise the index. The index is rebalanced annually in June
in conjunction with the reconstitution schedule of the Russell
1000� Index. About Claymore Securities Claymore Securities, Inc. is
a privately-held financial services company offering unique
investment solutions for financial advisors and their valued
clients. As of May 31, 2007, Claymore entities have provided
supervision, management, servicing or distribution on approximately
$17 billion in assets through closed-end funds, unit investment
trusts, mutual funds, separately managed accounts and
exchanged-traded funds. About KLD KLD Research and Analytics, Inc.
is the leading authority on social research and indexes for
institutional investors. Founded in 1988, today, 33 of the top 50
institutional money managers worldwide use KLD�s research to
integrate environmental, social and governance factors into their
investment decisions. Over $10 billion is invested in funds based
on KLD indexes. The KLD Large Cap Sudan Free Social Index is the
second product from KLD that addresses the Sudan Divestment issue.
Important Risks and Other Considerations This information does not
represent an offer to sell securities of funds and it is not
soliciting an offer to buy securities of the fund. There can be no
assurance that the fund will achieve its� investment objectives. An
investment in Claymore�s ETF is subject to certain risks and other
considerations. Such risks and considerations include, but are not
limited to: Investment Risk: An investment in the Fund is subject
to investment risk, including the possible loss of the entire
principal amount that you invest. Equity Risk: A principal risk of
investing in the Fund is equity risk, which means that the value of
the securities held by the Fund will fall due to general market and
economic conditions, perceptions regarding the industries in which
the issuers of securities held by the Fund participate, or factors
relating to specific companies in which the Fund invests. Social
Investment Risk: The KLD Index�s social policy could cause the Fund
to underperform similar funds that do not have a social policy.
Among the reasons for this: undervalued stocks that do not meet the
KLD Index�s social criteria could outperform those that do;
economic or political changes could make certain companies less
attractive for investment; the KLD Index�s social policy could
cause the Fund to sell or avoid stocks that subsequently perform
well. Foreign Investment Risk: The Fund�s investments in non-U.S.
issuers, although limited to ADRs, may involve unique risks
compared to investing in securities of U.S. issuers, including,
among others, greater market volatility than U.S. securities,
currency risk and less complete financial information than for U.S.
issuers among other risks. Non-Correlation Risk: The Fund�s return
may not match the return of the Index for a number of reasons
including, but not limited to, operating expenses not applicable to
the Index and costs in buying and selling securities to reflect
changes in the composition of the Index. Additionally, the Fund may
not be fully invested at times, either as a result of cash flows
into the Fund or reserves of cash held by the Fund to meet
redemptions and expenses. Replication Management Index: Unlike many
investment companies, the Fund is not �actively� managed.
Therefore, it would not necessarily sell a stock because the
stock�s issuer was in financial trouble unless that stock is
removed from the Index. Issuer-Specific Changes: the value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently
from the value of the market as a whole. Non-Diversified Fund Risk:
the Fund is considered non-diversified and can invest a greater
portion of assets in securities of individual issuers than a
diversified fund, which may result in greater fluctuations in share
price. Claymore ETFs are listed on the AMEX the same way as shares
of a publicly-traded company. Claymore ETFs can be purchased
through most brokerage accounts. They can be bought and sold
throughout the day on the AMEX during normal trading hours. The
Fund issues and redeems shares at NAV only in large blocks of
150,000 shares (each block of 150,000 shares is called a �Creation
Unit�) or multiples thereof. Only broker-dealers or large
institutional investors with creation and redemption agreements,
called Authorized Participants (�APs�), can purchase or redeem
these Creation Units. Investors buying or selling ETF shares on the
secondary market may incur brokerage costs and other transactional
fees. Shares of ETFs may fluctuate in price due to daily changes in
trading volume. At times, shares may not have a high volume of
trading. Except when aggregated in Creation Units, Shares are not
redeemable securities of the Fund. Investors should consider the
investment objectives and policies, risk considerations, charges
and ongoing expenses of the ETFs carefully before they invest. The
prospectus contains this and other information relevant to an
investment in the ETFs. Please read the prospectus carefully before
you invest or send money. For this and more information, please
contact a securities representative or Claymore Securities, Inc.,
2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999 or
www.claymore.com/etfs.
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