Source: Morningstar provided by Xignite
INVESTMENT OBJECTIVE
The investment objective of the Fund is to replicate the price performance of silver bullion, less the Fund's expenses and fees. The Fund is not actively managed. The Fund does not anticipate making regular distributions.
The Fund invests in holdings of unencumbered, silver bullion, and will not speculate with regard to short-term changes in silver prices. All of the silver bullion purchased by the Fund will be certified either "London Good Delivery" or "COMEX Good Delivery" by the relevant vendor. This strategy provides investors with the ability to invest in silver bullion in a convenient, tradable and secure manner without the associated inconvenience and high transaction, handling, storage, insurance and other costs typical of direct silver bullion investment. SVR.UN employs a currency hedging strategy to U.S. Dollar (“USD”) to reduce the currency risk exposure of the Fund as silver bullion is priced in USD, while the units of SVR do not employ any hedging strategy.
Trust Highlights
Opportunity to Capitalize on Silver with Currency Hedge against US dollar. Easy Access and Safe Direct Investment in Silver Bullion - The custodian of the Trust is ScotiaMocatta. ScotiaMocatta is one of the largest custodians of Silver in the world.
- The Silver Bullion will be stored in secure vault facilities.
Low-Cost Direct Ownership of Silver Bullion - Low management fee of 0.60% (which includes all operating expenses, including custody costs).
Automatic Conversion to ETF if Trading at Discount to NAV1 - ETF structure potentially provides more efficient trading and greater liquidity.
- Claymore was the first asset management company in Canada to create a conversion feature from a closed-end fund to an ETF and has filed a patent application in Canada for this process.
1. Commencing after January 15, 2010, if for a period of 10 consecutive trading days, the daily weighted average trading price (or, in the event there has been no trading on a particular day, the average of the closing bid and ask prices) of the Fund Units is greater than a discount of 2% of NAV per Unit for that day, there will be an automatic conversion of the Fund to an ETF.