Precidian will begin trading its new “MAXIS Nikkei 225 Index Fund” (NYSE:NKY) Wednesday, July 13, 2011.The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Nikkei Stock Average, commonly called the “Nikkei 225.”
Total Annual Fund Operating Expenses: 0.50%
Principal Investment Strategies
The Fund, under normal circumstances, invests at least 80% of its assets in the securities in its Underlying Index or in depositary receipts representing securities in its Underlying Index (“DRs”).
The Nikkei 225, which is published by Nikkei Inc. (the “Index Provider”), measures the performance of 225 highly liquid stocks traded on the large cap or “first” section of the Tokyo Stock Exchange. The components of the Underlying Index are given an equal weighting based on a par value of 50 Japanese Yen per share, whereby the prices of stocks with other par values are adjusted to also reflect a par value of 50 Japanese Yen per share. As of March 31, 2011, the Underlying Index’s three largest sectors were consumer discretionary, industrial and information technology. As of June 10, 2011, the Underlying Index, which is considered diversified, was comprised of component securities with market capitalizations greater than $207.2 million that have a daily average traded volume of at least $938,463 over the past three months. The total market capitalization of the Underlying Index as of June 10, 2011 was in excess of $1.501 trillion.
Indexing Investment Approach. The Fund is not managed according to traditional methods of “active” investment management, which involve the buying and selling of securities based upon economic, financial and market analysis and investment judgment. Instead, the Fund, utilizing a “passive” or indexing investment approach, attempts to approximate the investment performance of the Underlying Index by investing in a portfolio of securities that generally replicates the Underlying Index. The Fund may or may not hold all of the securities in the Underlying Index and may, from time to time, engage in a representative sampling strategy.
For the complete filing click: HERE