Last checked at 31 Dec 2018 12:27
ETFS Commodity Securities Limited
LEI: 21380068Q1JSIAN4FO63
31 December 2018
Rebalancing of Index Securities
The annual rebalancing of the Bloomberg Commodity Index and Bloomberg Commodity Index 3 Month Forward will commence next week. Consequently, each of the twenty-eight categories of Index Securities (comprising eighteen categories of Classic Index Securities and ten categories of Longer Dated Index Securities) as set out in the Prospectus of ETFS Commodity Securities Limited (the "Issuer") dated 26 September 2018 will also be rebalanced. As explained in the Prospectus, this will be done by adjusting the number of Micro Securities comprised in each Index Security.
The rebalancing itself will not change the value of any Index Security and no action is required on the part of Security Holders. The rebalancing does not affect the fifty classes of Individual Securities (comprising twenty-seven classes of Classic Individual Securities and twenty-three classes of Longer Dated Individual Securities).
As set out in the announcement of the Issuer dated 10 December 2018, following the announcement made by Bloomberg on 31 October 2018 in relation to the Bloomberg Commodity IndexSM 2019 target weights and composition, as part of the rebalancing:
(a) in respect of those categories of Classic Index Securities that currently comprise (inter alia) Heating Oil Micro Securities, the classes of Micro Securities to be comprised in such categories will be changed following such Required Rebalancing to include (in addition) Gas Oil Micro Securities; and
(b) in respect of those categories of Longer Dated Index Securities that currently comprise (inter alia) Heating Oil Micro Longer Dated Securities, the classes of Micro Longer Dated Securities to be comprised in such categories will be changed following such Required Rebalancing to include (in addition) Gas Oil Micro Longer Dated Securities.
The timetable for the rebalancing of the Index Securities is as follows:
Monday 7 January 2019
The target number of Micro Securities to be increased/decreased for each commodity in each Index Security will be determined using Monday 7 January 2019's settlement prices.
Tuesday 8 January 2019, Wednesday 9 January 2019, Thursday 10 January 2019, Friday 11 January 2019, Monday 14 January 2019
At the beginning of each of these days, the number of Micro Securities will be adjusted, based on the targeted changes and the actual previous day's closing prices, and the updated number of Micro Securities for each class of Index Security in issue will be available prior to trading commencing on the Issuer's website at
https://www.wisdomtree.eu/en-gb/pricing/etfs-commodity-securities-limited-classic
and
https://www.wisdomtree.eu/en-gb/pricing/etffs-commodity-securities-limited-longer-dated
Tuesday 15 January 2019
The final number of Micro Securities in each Index Security following the rebalancing will be announced prior to the opening of trading. (Note, however, if there is a Market Disruption Event for a commodity on Monday, 14 January 2019 then the final number of Micro Securities for any Index Security containing that commodity will not be determined until the next Business Day which is not a Market Disruption Day).
The table below shows (i) the existing weighting of each commodity for the Classic Securities and the Longer Dated Securities, as measured by the effective weight at current commodity prices in the ETFS All Commodities Index Security (for the Classic Securities) or the ETFS Longer Dated All Commodities Index Security (for the Longer Dated Securities), and (ii) the targeted new weighting of each commodity for the Classic Securities and the Longer Dated Securities, based on the Commodity Index Percentage to be used in the rebalancing of Bloomberg Commodity Index (Classic Securities) or Bloomberg Commodity Index 3 Month Forward (Longer Dated Securities).
http://www.rns-pdf.londonstockexchange.com/rns/8390L_1-2018-12-31.pdf
For further information, please contact
Ciaran Hocking
R&H Fund Services (Jersey) Limited
Tel: +44 (0) 1534 825200
Fax: +44 (0) 1534 825335
E-mail address: ciaran.hocking@rhfsl.com