Fund Description
Summary
The ALPS/CoreCommodity Management CompleteCommodities® Strategy Fund (the "Fund") seeks to maximize real returns, consistent with prudent investment management.
The Fund seeks to maximize total returns through strategic allocation within the global commodities markets, including commodity equities, commodity futures and US Treasury Inflation Protected Securities (TIPS).
CompleteCommodities, as developed by CoreCommodity Management, LLC, is an investment approach that actively combines Commodity and Commodity Equity Investments.
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Commodity Investments are investments in commodity futures contracts, commodity swaps, options on commodity futures, commodity-linked notes and may at times include direct or indirect investments in physical commodities.
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Commodity Equity Investments are generally investments in companies primarily engaged in the production and distribution of commodities and commodity-related products.
Investment Rationale
Potential for capital appreciation and diversification. Macroeconomic factors, including population growth, economic expansion in emerging markets, and depleting resources, all favor potential growth in commodities markets.
Diversified Investments in the Global Commodity Markets
The Fund offers comprehensive exposure to the commodity markets through investments in global Commodity Equities and Commodity Futures Related Investments. The portfolio management team seeks to rebalance between these complementary sectors to maximize real returns, consistent with prudent investment management.
Potential Benefits
The Fund can:
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Complement a well-diversified portfolio of stocks and bonds with comprehensive access to global commodity markets
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Reduce overall portfolio volatility and can help increase expected returns through the benefits of diversification offered through investments in commodities
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Reduce the implicit costs of investing in commodity indices (or "contango") incurred in "rolling" futures contracts (process of replacing expiring futures positions with new contracts)
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Provide access to investments in difficult to access commodity markets such as steel, iron, uranium, fertilizers and other commodities
Important Risks and Disclosures
Investors should consider the following risk factors and special considerations associated with investing in the ALPS/CoreCommodity Management CompleteCommodities Strategy Fund (the “Fund”), which may cause you to lose money. The Fund is considered non--‐diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. A principal risk of investing in the Fund is equity risk, which is the risk 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. The Fund’s investments in non--‐U.S. issuers involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of their investments.
Above and continuing below are a description of the principal risks of the Fund’s portfolio that may adversely affect its net asset value and total return. There are other circumstances (including additional risks that are not described here) which could prevent the Fund from achieving its investment objective. It is important to read all
Of the disclosure information provided and to understand that you may lose money by investing in the Fund.
Prior to April 30, 2013, The ALPS/CoreCommodity Management CompleteCommodities Strategy Fund was known as the Jefferies Asset Management Commodity Strategy Allocation Fund.
Please refer to the prospectus for complete information regarding all risks associated with the fund.
This fund is not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested.
Derivatives generally are more sensitive to changes in economic or market conditions than other types of investments; this could result in losses that significantly exceed the fund's original investment.
The following is a description of the principal risks of the Fund's portfolio that may adversely affect its net asset value and total return. There are other circumstances (including additional risks that are not described here) which could prevent the Fund from achieving its investment objective. It is important to read all of the disclosure information provided and to understand that you may lose money by investing in the Fund.
Commodity Risk
The Fund's investments in Commodity-Related Equities and Commodity-Linked Derivatives may subject the Fund to significantly greater volatility than investments in traditional securities and involve substantial risks, including risk of a significant portion on their principal value. The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund's performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund.
Risks of Investing in Commodity-Linked Derivatives and Leverage Risk.
Commodity-Linked Derivatives are subject to the risk that the market value of the Commodity-Linked Derivative itself or the market value of the underlying instrument will change in a way adverse to the Fund's interests. In addition, such instruments may experience potentially dramatic price changes (losses) and imperfect correlations between the price of the contract and the underlying security or index. As a result, the Fund may incur larger losses or smaller gains than otherwise would be the case if the Fund invested directly in the underlying securities. A highly liquid secondary market may not exist for certain Commodity-Linked Derivatives, and there can be no assurance that one will develop. Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leveraging may cause the Fund to liquidate portfolio positions to satisfy its obligations or to meet segregation requirements when it may not be advantageous to do so.
Counterparty Risk
In connection with the Fund's direct and indirect investments in Commodity-Linked Derivatives, the Fund will attempt to manage its counterparty exposure so as to limit its exposure to any one counterparty. However, due to the limited number of entities that may serve as counterparties (and which the Fund believes are creditworthy) at any one time the Fund may enter into Commodity-Linked Derivative transactions with a limited number of counterparties or issued by a limited number of issuers that will act as counterparties, which may increase the Fund's exposure to counterparty credit risk.
Diversification does not eliminate the risk of experiencing investment losses.
An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, please call 877.526.9298 or 866.675.2639 or click here. Read the prospectus carefully before investing
The ALPS/CoreCommodity Management CompleteCommodities® Strategy Fund is distributed by ALPS Portfolio Solutions Distributor, Inc.
The ALPS/CoreCommodity Management CompleteCommodities® Strategy Fund is: Not FDIC Insured - No Bank Guarantee - May Lose Value.
Generally, the Commodity Futures-Linked Investments will be made through the Fund's Cayman Islands subsidiary. The Fund will generally invest up to 25% of its total assets in the Cayman subsidiary, consistent with the limits of the federal tax law requirements applicable to registered investment companies.
ALPS Advisors, Inc. and CoreCommodity Management, LLC are registered with the CFTC as the Commodity Pool Operator and respectively as the Commodity Trading Adviser and both are NFA members.
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