The Bank of New York Appointed Trustee for Rydex Investments' Exchange-Traded Trust Suite
NEW YORK, June 27, 2006 – The Bank of New York, a global leader in securities servicing, has been appointed trustee for six additional Rydex Investments exchange-traded trust funds, which provide a cost-effective, convenient and dollar-denominated method to invest in Australian dollars, British pounds, Canadian dollars, Mexican pesos, Swedish kronas and Swiss francs. This suite of funds complements Rydex's Euro Currency Trust, the first U.S. exchange-traded product backed solely with Euro currency which represents an innovative process for equitizing commodities.
The following six trusts trade on the New York Stock Exchange: CurrencyShares Australian Dollar Trust ("FXA"), CurrencyShares British Pound Sterling Trust ("FXB"), CurrencyShares Canadian Dollar Trust ("FXC"), CurrencyShares Mexican Peso Trust ("FXM"), CurrencyShares Swedish Krona Trust ("FXS"), and CurrencyShares Swiss Franc Trust ("FXF").
These funds are based on a proprietary process developed by The Bank of New York's Depositary Receipts (DR) division. The investment strategy for each is for the shares to reflect the performance of the price of each respective currency, less the expenses of the trusts' operations.
Christopher Sturdy, executive vice president and head of the depositary receipt division at The Bank of New York, said, "The Bank of New York remains the trustee of choice for commodity-based products in the U.S. This appointment broadens Rydex's currency-based suite of trusts and reflects our focus on the development of innovative securities products around the globe."
The Bank's Global Fund Services group will manage the day-to-day administration of the trusts, including calculating the trusts' net asset value and the net asset values per share, converting each currency to dollars as needed to pay trust expenses, receiving and processing orders to create trust shares, and working with the trusts' custodian.
Joseph Keenan, managing director and head of U.S. fund services sales at The Bank of New York, said, "The Bank of New York is an acknowledged leader in the rapidly evolving ETF business. We are committed to providing our clients the ability to successfully introduce innovative exchange traded products, while we manage the operational and administrative requirements to ensure smooth operations."
The Bank of New York is depositary for more than 1,230 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 a wide 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, asset management, and private banking. 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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