SERIES12
delta global canadian energy trust series 12
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DAILY DATA
as of
3/17/10
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Portfolio Status
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Secondary
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Offer Price1
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--
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Bid Price2
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$7.119300
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Liquidation Price3
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$7.119300
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1 The "offer" price represents the net asset value of one unit
of a trust plus a transactional sales charge.
2 The "bid" price represents the net asset value of one unit
of a trust excluding deferred sales charge.
3 The "liquidation" price represents the net asset value of
one unit of a trust and includes any front-end and deferred sales charges accounted
for if investors liquidate units.
4 The Historical Annual Dividend Distribution is as of date of deposit. The amount of distributions of the Trust may be lower or greater than the above-stated
amount due to certain factors that may include, but are not limited to, a change
in the dividends paid by issuers, a change in Trust expenses or the sale or maturity
of securities in the portfolio. Fees and expenses of the Trust may vary as a result
of a variety of factors including the Trust's size, redemption activity, brokerage and
other transaction costs and extraordinary expenses.
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DEPOSIT INFORMATION
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Inception Date
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7/23/2008
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Mandatory Termination Date
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7/21/2010
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NASDAQ Ticker Symbol
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CCRTLX
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Inception Unit Price
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$10.000000
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Inception Bid Price
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$9.900000
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Inception Liquidation Price
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$9.655000
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Historical Annual Dividend Distribution4
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--
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Deferred Sales Charge Dates
5
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Apr 2009
May 2009
Jun 2009
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| CUSIP - Monthly-Cash |
18386T623 |
| CUSIP - Monthly-Reinvest |
18386T631 |
| CUSIP - Monthly-Fee/Cash |
18386T649 |
| CUSIP - Monthly-Fee/Reinvest |
18386T656 |
5 Early redemption of units will still cause payment of deferred sales charge.
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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
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INVESTMENT OBJECTIVE
The Delta Global Canadian Energy Trust seeks to provide a high level of income with a secondary objective of providing the potential for capital growth.
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PRINCIPAL INVESTMENT STRATEGY
Under normal circumstances, the trust will invest at least 80% of the value of its assets in Canadian royalty trust units, headquartered in Canada, whose principal business is the production of oil and natural gas and which list their shares on exchanges in the United States and/or Canada (“Canadian Energy Trusts”).
Canadian royalty trusts are generally structured to own debt and equity of an underlying entity that carries on an active business, or a royalty in revenues generated by the assets thereof. The Canadian royalty trust’s structure was developed to facilitate distributions to investors on a tax-efficient basis.
The Canadian Energy Trusts included in the trust will invest in Canadian oil and gas trusts that have a direct or indirect interest in oil and gas properties. These trusts generate cash flow through the production and sale of underlying crude oil and natural gas reserves.
The sponsor has selected Delta Global Advisors, Inc. (“Delta Global”) to serve as the trust’s portfolio consultant. The portfolio consultant is responsible for assisting the sponsor with the selection of the trust’s portfolio and providing ongoing support related to the securities in the portfolio.
See “Investment Policies” in Part B of the prospectus for more information.
Canadian Royalty Trusts
Similar to real estate investment trusts (“REITs”) in the United States, Canadian royalty trusts pay the majority of their earnings to shareholders in the form of dividends.
Unlike U.S. energy trusts, Canadian Energy Trusts are active operating companies. Canadian Energy Trusts can issue new stock or debt in order to fund acquisitions as well as expand their reserve lives.
The trust is designed to provide monthly income according to the payout schedules of the holdings within the trust.
Because the trust is focused on oil and gas producers, measurable fluctuations in energy prices typically impact dividend payouts and, therefore, share prices. Energy prices have historically correlated with payout levels from Canadian Energy Trusts like those held in this portfolio.
Delta Global believes that today’s market for crude oil is very tight, with little difference between global supply and demand. Barring unusual economic circumstances, Delta Global expects the global oil market to remain tight throughout the two-year life of this trust, resulting in possibly stable or growing payouts from energy trust vehicles.
Ultimately, Canadian Energy Trusts represent an interesting way to gain exposure to crude oil and natural gas.
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SELECTION CRITERIA
The sponsor, with the assistance of Delta Global, has selected a portfolio of Canadian Energy Trusts through a process of bottom-up company analysis and due diligence. Companies were selected based on the quality of their reserve life, payout ratio, dividend history, operating costs, growth rate of shares outstanding, the effective use of capital and, when available, the findings of the Dominion Bond Ratings Service, Canada’s premier credit rating agency.
Delta Global Advisors, Inc.
Delta Global Advisors, Inc. is a federally registered investment adviser. Delta Global’s founder and president, Charles “Chip” Hanlon, is a contributing writer for TheStreet.com and a widely-followed authority on foreign markets, currencies and commodities. Delta Global is focused on providing specialized global investment strategies and consulting on specialized investment themes with institutional clients. In addition to receiving a portfolio consulting fee, the trust pays Delta Global a licensing fee for the use of its intellectual property.
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RISKS AND OTHER CONSIDERATIONS
This Trust is not being offered for sale. This data is for informational purposes only.
As with all investments, you can lose money by investing in this trust. The trust also might not perform as well as you expect. This can happen for reasons such as these:
- Stock prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
- The sponsor does not actively manage the portfolio. The trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
- Share prices or dividend rates on the securities in the trust may decline during the life of the trust. There is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
- Issuers of securities held by the trust may be unwilling or unable to make principal payments and/or to declare distributions in the future, may call a security before its stated maturity, or may reduce the level of distributions declared. This may result in a reduction in the value of your units.
- The financial condition of an issuer of securities held by the trust may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period.
- The trust will invest in the units of Canadian Energy Trusts. The trust’s investment in Canadian Energy Trust units involves risks which may differ from an investment in common stock of a corporation. Canadian Energy Trust units represent an equal fractional beneficial interest in such trust and often include provisions in their organization documents that limit their liability to unitholders. As a result, ownership of Canadian Energy Trusts may not provide unitholders with the statutory rights normally associated with ownership of shares of a corporation. In addition, Canadian Energy Trusts generally do not guarantee minimum distributions or even a return of capital and are subject to the risk that tax changes or recharacterizations will substantially affect the Canadian or U.S. tax consequences of owning such trusts. Canadian Energy Trusts are subject to the risks associated with other energy-related companies including the possibility of wide fluctuation of energy prices. See “Investment Risks--Energy sector risk” below.
- The trust will invest in foreign securities. The trust’s investment in foreign securities presents additional risk. Foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards. The trust’s investment in Canadian Energy Trusts subjects it to additional risks to which it might not otherwise be subject if it invested in similar types of income or royalty trusts that are available through issuers in the United States. In addition, the trust’s investment in Canadian Energy Trusts may expose unitholders to additional risks that may be associated with Canada or the Canadian securities markets.
- The trust may invest in companies that are considered to be passive foreign investment companies (“PFICs”). In general, PFICs are certain non-U.S. corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income. As a result of an investment in PFICs, the trust could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is distributed to its unitholders in a timely manner. The trust will not be able to pass through to its unitholders any credit or deduction for such taxes.
- The trust includes securities whose value is dependent on currency exchange rates. The U.S. dollar value of these securities will vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
- Inflation may lead to a decrease in the value of assets or income from investments.
- The trust includes securities issued by companies in the energy sector. Companies in the energy sector are subject to volatile fluctuations in price and supply of energy fuels, and can be impacted by international politics and conflicts, including the war in Iraq and hostilities in the Middle East, terrorist attacks, the success of exploration projects, reduced demand as a result of increases in energy efficiency and energy conservation, natural disasters, clean-up and litigation costs associated with environmental damage and extensive regulation.
- The trust invests in stocks issued by small-capitalization and mid-capitalization companies. These stocks customarily involve more investment risk than stocks of larger capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
UITs are fixed and not actively managed. Investors can lose some or all of their investment in this Trust. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. There is no guarantee that this portfolio will achieve its investment objective. The economic condition of the issuers of the securities in this portfolio as well as the stock market, in general, may worsen and therefore reduce the value of the units of the portfolio.
This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios at the applicable sales charge, if available. There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next. Units of certain portfolios may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult your attorney or tax advisor regarding tax consequences associated with the purchase of units. Claymore Securities, Inc. does not offer tax advice.
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Investors should carefully consider the investment objectives and policies, risk considerations, charges
and ongoing expenses of any investment product before investing. The prospectus contains this and other
relevant information. Please read the prospectus carefully before you invest. To obtain a prospectus,
please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle,
Illinois 60532, 800-345-7999, or download one by accessing the Literature section
of this website.
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
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