GreenHaven unveils coal ETP

Feb 24th, 2015 | By | Category: Commodities

GreenHaven, a US-based commodities asset manager, has announced the launch of the GreenHaven Coal Fund (TONS), the first exchange-traded product designed to offer investors exposure to daily changes in the price of coal futures contracts.

GreenHaven unveils coal ETF

GreenHaven’s newly launched coal ETP provides exposure to daily changes in the price of coal futures contracts.

The fund has been listed on the NYSE Arca.

Commenting on the launch, Cooper Anderson, Chief Financial Officer of GreenHaven Coal Services, the fund’s sponsor, said: “As the first single-commodity coal ETP, TONS offers investors access to a global market that before now has generally been accessible only to institutions and traditional coal companies”

He added: “Coal is an asset class that helps to generate one-third of the world’s electricity, and TONS is designed to provide investors and hedgers alike with exposure to daily changes in the price of coal futures.”

The fund’s investment strategy is to provide investors with exposure to the daily change in the price of coal futures contracts in a cost-effective manner, and to permit participants in the coal or other industries to hedge the risk of losses in their coal-related transactions.

The fund will seek to achieve its investment objective by purchasing Rotterdam coal futures contracts that are traded via CME Group trading platforms to the greatest extent possible, without being leveraged or exceeding relevant position limits.

The fund intends to hold an equal number of futures contracts in each of the three months comprising the nearest calendar quarter. Four times a year, the fund will attempt to roll its positions in the nearby calendar quarter to the next calendar quarter over 5 business days.

The portfolio will be traded with a view to reflecting the performance of coal futures contracts, whether coal futures are rising, falling or flat over any particular period.

The fund’s investment in coal futures will be collateralized by cash, cash equivalents, and US treasury bills with remaining maturities of three months or less. It will not use leverage.

The fund has a management fee of 0.95%.

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