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Security Profile
- Security Type
- Index ETF
- CUSIP
- 97717W182
- Market Cap
- Small Cap · $225 Million
- IPO
- 5/14/2008
- Previous Name
- WisdomTree Chinese Yuan Fund
Fund Description: WisdomTree Chinese Yuan Strategy Fund, formerly WisdomTree Chinese Yuan Fund, formerly WisdomTree Dreyfus Chinese Yuan Fund is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the WisdomTree Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The WisdomTree Chinese Yuan Strategy Fund seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese yuan relative to the U.S. dollar. The Chinese yuan is a developing market currency, which can experience periods of significant volatility. Although the Fund invests in very short-term, investment grade instruments, the Fund is not a money market fund and it is not the objective of the Fund to maintain a constant share price. The Fund is an actively managed exchange-traded fund (ETF) and thus does not seek to replicate the performance of a specified index. FUND STRATEGY: The Fund seeks to achieve its investment objective by investing in short term securities designed to provide exposure to China currency and money market rates. Because the market for money market securities in China is relatively small and less liquid than corresponding markets in other countries, the Fund intends to achieve exposure to currency markets in China by investing primarily in short term U.S. money market securities and also in forward currency contracts and swaps. The combination of U.S. money market securities with forward currency contracts and currency swaps is designed to create a position economically similar to a money market security denominated in Chines Yuan. A forward currency contract is an agreement to buy or sell a specific currency at a future date at a price set at the time of the contract. A currency swap is an agreement between two parties to exchange one currency for another at a future rate. In order to attempt to reduce interest rate risk, the Fund generally will maintain a weighted average portfolio maturity of 90 days or less and will not purchase any security with a remaining maturity of more than 397 calendar days. All U.S. money market securities acquired by the Fund will be rated in the upper two short-term ratings by at least two nationally recognized statistical rating organizations or if unrated, deemed to be of equivalent quality. The Fund does not seek to preserve capital in U.S. dollars. The decision to secure exposure directly or indirectly will be a function of, among other things, market accessibility, credit exposure, and tax ramifications for foreign investors. If the Fund pursues direct investment, eligible investments include short-term securities issued by the government of China and its agencies or instrumentalities, bank debt obligations and time deposits, bankers' acceptances, commercial paper, short-term corporate debt obligations, mortgage-backed securities and asset-backed securities. FUND MANAGEMENT: As investment adviser, WisdomTree Asset Management has overall responsibility for the general management and administration of the Trust and also provides an investment program, fund administration and all other non-distribution related services necessary for the Fund to operate. Mellon Capital Management Corporation and the Dreyfus Corporation serves as the sub-advisers to the Fund.
Notes: WisdomTree Chinese Yuan Strategy Fund
Company Contact
- Headquarters
- 245 Park Avenue, 35th Floor, New York, NY 10167
- Phone
- 866-909-9473 · Toll-Free 866-909-9473
- Investor Relations
- Jason Weyeneth, CFA · 917-267-3858 · JWeyeneth@wisdomtree.com