ETFs Delisted on April 11, 2016
Highland Capital Management Fund Advisors L.P., begun trading 3 new ETFs: the Highland HFR Global ETF (NYSE Arca: HHFR), the Highland HFR Event-Driven ETF (NYSE Arca: DRVN) and the Highland HFR Equity Hedge ETF (NYSE Arca: HHDG) on Monday, June 01, 2015. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: HHFR | Exchange: NYSE Arca |
| Name: Highland HFR Global ETF | Net Expense Ratio: 0.85% |
FUND OBJECTIVE:
The Highland HFR Global ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the HFRL Global Index.
REFERENCE INDEX:
The HFRL Global Index (Underlying Index) is a rules-based index that seeks to track the returns of hedge funds that employ hedge fund strategies by including securities held by such hedge funds. The Underlying Index is constructed to track returns of hedge funds by using a proprietary filtering, monitoring and quantitative selection process to select appropriate securities from a database of hedge fund information. The Underlying Index does not include hedge funds (i.e., unlisted, privately offered funds). These strategies may include but are not limited to long/short equity, macro, event-driven and other strategies commonly used by hedge fund managers. The Fund seeks to achieve its investment objective by investing in debt securities and listed equity securities of U.S. and foreign companies. The Fund seeks to achieve its investment objective by investing in debt securities and listed equity securities of U.S. and foreign companies. The Underlying Index does not maintain more than 50% exposure in securities representing any one hedge fund strategy. In seeking to achieve its investment objective, the Fund may take short positions in equity securities. In the future, the Fund may gain exposure to commodities by investing up to 20% of its total assets in a wholly-owned subsidiary organized in the Cayman Islands (Subsidiary). The Subsidiary will be advised by Highland Capital Management Fund Advisors, L.P. and will have the same investment objective as the Fund.
The Underlying Index is sponsored by HFR, an organization that is independent of the Fund and the Adviser. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. As of February 28, 2015, the Underlying Index included 96 securities with a weighted average market capitalization of $48 billion.
Useful Links:
HHFR Home Page
2.
FUND INFORMATION:
| Symbol: DRVN | Exchange: NYSE Arca |
| Name: Highland HFR Event-Driven ETF | Net Expense Ratio: 0.85% |
FUND OBJECTIVE:
The Highland HFR Event-Driven ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performane of the HFRL Event-Driven Index.
REFERENCE INDEX:
The HFRL Event-Driven Index is comprised of securities selected within the following hedge fund strategy:
Event Driven: Event-driven strategies are based on investment in opportunities created by significant transactional events, such as spin-offs, mergers and acquisitions, industry consolidations, liquidations, reorganizations, bankruptcies, recapitalizations, share buybacks and other extraordinary corporate transactions. The Fund uses a passive management strategy designed to track the total return performance of the Underlying Index. The Underlying Index is a rules-based index that seeks to track the returns of hedge funds that employ event-driven strategies by including securities held by such hedge funds.
The Underlying Index is constructed to track returns of hedge funds by using a proprietary filtering, monitoring and quantitative selection process to select appropriate securities from a database of hedge fund information. The Underlying Index does not include hedge funds (i.e.,unlisted, privately offered funds). Event-driven strategies take advantage of transaction announcements and other specific one-time events. Event-driven strategies utilize an investment process that identifies equity opportunities in companies which are currently engaged in a corporate transaction, such as mergers, restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance or other capital structure adjustments. Security types can range from most senior in the capital structure to most junior or subordinated. Event-driven exposure includes a combination of sensitivities to equity markets, credit markets and idiosyncratic, company specific developments. The Fund seeks to achieve its investment objective by investing in debt securities and listed equity securities of U.S. and foreign companies. In seeking to achieve its investment objective, the Fund may take short positions in equity securities.
The Underlying Index is sponsored by HFR, an organization that is independent of the Fund and the Adviser. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. As of February 28, 2015, the Underlying Index included 40 securities with a weighted average market capitalization of $17 billion.
Useful Links:
DRVN Home Page
3.
FUND INFORMATION:
| Symbol: HHDG | Exchange: NYSE Arca |
| Name: Highland HFR Equity Hedge ETF | Net Expense Ratio: 0.85% |
FUND OBJECTIVE:
The Highland HFR Equity Hedge ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the HFRL Equity Hedge Index.
REFERENCE INDEX:
The HFRL Equity Hedge Index is comprised of securities selected within the following hedge fund strategy:
Equity Hedge: Equity hedge strategies combine long holdings of equity securities with short sales of stock, stock indices or derivatives related to equity markets. The Fund uses a passive management strategy designed to track the total return performance of the Underlying Index. The Underlying Index is a rules-based index that seeks to track the returns of hedge funds that employ fundamental value strategies by including securities held by such hedge funds. The Underlying Index is constructed to track returns of hedge funds by using a proprietary filtering, monitoring and quantitative selection process to select appropriate securities from a database of hedge fund performance information. The Underlying Index does not include hedge funds (i.e., unlisted, privately offered funds). Fundamental value strategies involve techniques that evaluate companies based on valuation criteria by which the hedge fund manager determines the company to be undervalued and inexpensive, by analyzing the company’s financial statements. Fundamental value strategies employ investment processes intended to identify investments that are attractive opportunities due to their current market value being discounted to what the hedge fund manager determines to be the company’s fundamental value. The Fund seeks to achieve its investment objective by investing in debt securities and listed equity securities of U.S. and foreign companies. In seeking to achieve its investment objective, the Fund may take short positions in equity securities.
The Underlying Index is sponsored by HFR, an organization that is independent of the Fund and the Adviser. The Index Provider determines the composition and relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. As of February 28, 2015, the Underlying Index included 116 securities with a weighted average market capitalization of $72 billion.
Useful Links:
HHDG Home Page