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Delta Global Advisors provided security selection for
UITs offered through Claymore Securities, Inc.
Huntington Beach, CA, December 19, 2007
Investment firm Delta Global Advisors, Inc. announced today
the launch of two unit investment trusts focused on global infrastructure, the Delta
Global Basic Needs and Delta
Global Basic Services Portfolios.
“We divided the broad
infrastructure theme in this way to let investors decide how they would most
like to participate in this theme, via Basic Services and the fundamental industries
which are crucial to a developing society and/or through Basic Needs and its
exposure to the raw materials which serve as the building blocks of an emerging
economy,” said Chip Hanlon, President of Delta Global. “Both portfolios are
focused on companies primarily exposed to Asia
and emerging markets elsewhere,” he continued.
Basic Needs provides exposure
to agriculture, water and raw materials including energy, industrial metals and
basic materials such as cement and steel.
The portfolio contains 38 companies with headquarters in fifteen
countries, including China, India, Australia
and Brazil,
as of date of deposit.
The Basic Services portfolio
is made up of 27 holdings headquartered in eight different countries with
operations worldwide, and provides exposure to utilities, telecom, ports, airports,
roads and railroads, as of date of deposit.
Delta Global believes such securities
are attractive due to the long-term need for basic infrastructure development
throughout Asia and in other emerging markets
around the globe.
“I chuckle when I hear
commentators make statements about how the Chinese economy should continue to
grow through next year’s Olympics in Beijing. China’s infrastructure needs alone
are so big as to be mind-boggling,” said Hanlon. “This isn’t just a multi-year
story, it’s a multi-decade one, and we continue to enjoy working with a creative
firm like Claymore Securities, which had the vision to provide these portfolio
solutions to brokers and their clients.”
Scott Larsen, Managing
Director of Unit Investment Trusts at Claymore Securities, said, “We are
pleased to partner once again with Delta Global, and these products provide
unique investment solutions based upon Delta’s experience in world markets.”
The Delta Global Basic Needs
and Basic Services UITs are available through most full service and discount
brokerage firms and they are offered by Chicago-based Claymore Securities,
Inc., whose entities have provided supervision, management, servicing or
distribution on approximately $18.3 billion in assets as of November 30, 2007.
Claymore currently offers exchange-traded funds, unit investment trusts and
closed-end funds.
About Delta Global Advisors:
Delta Global Advisors, Inc.
is an SEC-registered investment adviser. Delta Global’s founder and president, Chip
Hanlon, is a securities analyst, a contributing writer for Real Money and a widely-followed authority on foreign markets,
currencies and commodities. He is also writing a book on global investing for
FT Prentice Hall Publishing. Delta Global focuses on providing specialized
global investment strategies and consulting on specialized investment themes
with institutional clients.
About Claymore:
Claymore Securities, Inc. is
a privately-held financial services company offering unique investment
solutions for financial advisors and their valued clients. Claymore entities
have provided supervision, management, servicing or distribution on
approximately $18.3 billion in assets as of November 30, 2007. Claymore
currently offers exchange-traded funds, unit investment trusts and closed-end
funds.
Risk Considerations
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.
The sponsor does not actively manage the portfolios. The trusts 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 stocks may
decline during the life of the trusts. 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.
The trusts invest in ADRs and foreign securities.
The trust’s investment in ADRs and foreign securities
presents additional risk. ADRs are issued by a bank or trust company to
evidence ownership of underlying securities issued by foreign corporations.
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 trusts may invest in companies that are considered
to be passive foreign investment companies (“PFICs”). PFICs are generally 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 trusts will not
be able to pass through to its unitholders any credit or deduction for such
taxes.
The trusts may include securities issued by companies
located in emerging markets. Emerging
markets are generally defined as countries with low per capita income in the
initial stages of their industrialization cycles. The markets of emerging
markets countries are generally more volatile than the markets 4 Investment
Summary of developed countries with more mature economies. All of the risks of
investing in foreign securities described above are heightened by investing in
emerging markets countries.
The trusts invest 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.
Inflation
may lead to a decrease in the value of assets or income from investments.
Risks
Specific to the Delta Global Basic Needs Portfolio:
The trust invests in securities of companies in the
basic materials sector.
General
risks of companies in the basic materials sector include the general state of
the economy, consolidation, domestic and international politics and excess
capacity. In addition, basic materials companies may also be significantly
affected by volatility of commodity prices, import controls, worldwide
competition, liability for environmental damage, depletion of resources and
mandated expenditures for safety and pollution control devices.
Risks
Specific to the Delta Global Basics Services Portfolio:
The trust includes stocks issued by companies in the
industrial sector.
Companies in the industrial sector are affected by a
number of factors including the general state of the economy, intense
competition, domestic and international politics, excess capacity and spending
trends.
The trust includes securities from the utility sector.
Adverse developments in this sector may significantly
affect the value of your units. Companies involved in the utility sector must
contend with environmental considerations, taxes, government regulation, price
and supply fluctuations, competition and energy conservation.
Investors should consider the investment objectives
and policies, risk considerations, charges and ongoing expenses of the UITs
carefully before investing. The prospectus contains this and other information
relevant to an investment in these Trusts. Please read the prospectus carefully
before you invest or send money. If a free prospectus did not accompany this
literature, please contact your securities representative or Claymore
Securities Inc., 2455 Corporate
West Drive, Lisle, IL. 60532, 800-345-7999.
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