The Bank of New York Appointed Trustee for Rydex Investments’ Euro Currency Trust
NEW YORK, December 12, 2005 - The Bank of New York, a global leader in securities servicing, has been appointed trustee for Rydex Investments’ exchange traded trust, named the Euro Currency Trust. Euro Currency Trust is the first U.S. exchange-traded product backed solely with Euro currency and represents an innovative process for equitizing commodities. The shares trade on the New York Stock Exchange under the symbol "FXE."
The trust, based on a proprietary process developed by The Bank of New York’s Depositary Receipts (DR) division, provides a cost-effective, convenient and dollar-denominated method to invest in Euros. The investment objective of the trust is for the shares to reflect the performance of the price of Euros, less the expenses of the trust’s operations.
Christopher Sturdy, managing director and head of the depositary receipt division at The Bank of New York, said, "This appointment strengthens our position as the leading trustee for commodity-based trust products in the U.S. We hope to service similar commodity-based trust products in the future as part of our ongoing effort to support the development of innovative investment choices for investors worldwide."
The Bank’s Global Fund Services group will manage the day-to-day administration of the trust, including calculating the trust’s net asset value and the net asset value per share, converting Euros to dollars as needed to pay trust expenses, receiving and processing orders to create Euro Currency Trust shares, and monitoring the trust’s custodian.
Joseph Keenan, managing director and head of U.S. fund services sales at The Bank of New York, said, "Because of our demonstrated expertise in supporting the world’s rapidly evolving financial markets, we were able to provide critical operational and administrative support to help Rydex bring another innovative exchange traded product to market."
The Bank of New York is depositary for more than 1,200 American and global depositary receipt programs, a 64% market share, acting in partnership with leading companies from 60 countries. With an unrivalled commitment to helping securities issuers succeed in the world’s rapidly evolving financial markets, the Bank delivers the industry’s most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Additional information is available at www.adrbny.com.
The Bank of New York’s Global Fund Services delivers a comprehensive and flexible range of services to help power performance for the widest range of fund structures around the world, including mutual funds, exchange-traded funds, hedge funds and unit investment trusts. Teams of dedicated experts are located worldwide, including Bermuda, Brussels, Cayman, Dublin, Florida, Jersey/Guernsey/Isle of Man, London, Luxembourg, New York and Singapore.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.
The Bank of New York provides no advice nor recommendation or endorsement with respect to any company or security. Nothing herein shall be deemed to constitute an offer or solicitation of an offer to buy or sell securities.
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