Risk Factors
- Investors should consider the following risk factors and special considerations associated with investing in the Jefferies Asset Management Commodity Strategy Allocation Fund, which may cause you to lose money.
- The Fund’s investments may subject the Fund to significantly greater volatility than investments in traditional securities and involve substantial risks, including risk of a significant portion on their principal value. The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund’s performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund.
- Additional risks of Commodity Futures-Linked Investments include liquidity risk and counterparty credit risk.
- Another principal risk of investing in the Fund is equity risk, which is the risk that the value of the securities held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate or factors relating to specific companies in which the Fund invest. The Fund’s investments in non-U.S. issuers may be even more volatile and may present more risks than investments in U.S. issuers.
- Equity investments in commodity-related companies may not move in the same direction and to the same extent as the underlying commodities.
- This Fund is not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested.
- Past performance is no guarantee of future results.
- An investor should consider investment objectives, risks, charges and expenses carefully before investing, including “Additional Risks” as described in the prospectus. To obtain a prospectus, which contains this and other information, call 1.866.759.5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.
- The Jefferies Asset Management Commodity Strategy Allocation Fund is distributed by ALPS Distributors, Inc., 1290 Broadway, Ste. 1100, Denver, CO 80203. ALPS Advisors, Inc. is the investment adviser to the Fund and Jefferies Asset Management, LLC is the investment sub-adviser. ALPS is not affiliated with Jefferies Asset Management. Jefferies Asset Management, LLC serves as investment adviser to the Fund’s Cayman Islands subsidiary.
- The Thomson Reuters / Jefferies CRB Index and the Thomson Reuters / Jefferies CRB 3 Month Forward Index are unmanaged indexes used as a measurement of change in commodity market conditions based on the performance of a basket of commodities.
- Generally, the Commodity Futures-Linked Investments will be made through the Fund’s Cayman Islands subsidiary. The Fund will generally invest up to 25% of its total assets in the Cayman subsidiary, consistent with the limits of the federal tax law requirements applicable to registered investment companies.