Investment Objective
The Delta Global Agriculture Trust seeks to maximize total return primarily through capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
The trust consists of 24 securities of companies headquartered in eleven countries on five continents (North America, South America, Europe, Asia and Australia) selected by Claymore, with the assistance of Delta Global Advisors, Inc. (“Delta Global”), that may appreciate in value, especially in an environment of rising agricultural commodity prices. These commodities include, but are not limited to, corn, soybeans, wheat, sugar, palm oil, cotton, oats and fruit. The trust portfolio also has exposure to companies that profit from the use of edible oils as bio-fuels. In addition, the trust invests in companies that help farmers increase crop yields and that benefit from the trading of agricultural commodities.
The sponsor has selected Delta Global to serve as the trust’s portfolio consultant. The portfolio consultant is responsible for assisting the sponsor with the selection of the trust’s portfolio and providing ongoing support related to the securities in the portfolio.
Agricultural Commodities
Delta Global believes that this trust offers an opportunity to invest in an internationally diversified basket of agricultural commodity-producing companies. Unlike owning agricultural commodities outright—where returns are limited to an increase in prices—investing in companies that generate these products can produce earnings and share price appreciation regardless of the commodity price environment, though rising agricultural prices would generally benefit such companies.
In addition, as more of the limited supply of corn and soybeans are diverted to bio-fuel consumption, Delta Global believes that forces for a sustained rise in agricultural commodities prices seem to be in place.
As with any similar investments, there can be no guarantee that the objective of the trust will be achieved. Additionally, there is no guarantee that agricultural commodities prices or stocks of companies in the agricultural industry will perform well or that the trust will replicate the future performance of the agricultural industry as a whole. See “Investment Risks” in Part A of the prospectus for a discussion of the risks of investing in the trust.
See Investment Policies” in Part B of the prospectus for more information.