Direxion Investments Limits Creation Units for Direxion Daily CSI 300 China A Share Bear 1X Shares (CHAD)
Jun 26, 2015, 06:35 ET
NEW YORK, June 26, 2015 /PRNewswire/ -- Direxion Investments announced today that effective immediately, daily creation orders in the Direxion Daily CSI 300 China A Share Bear 1X Shares exchange traded fund (Ticker: CHAD) will be limited to five units per day. Each creation unit is comprised of 50,000 shares. The Fund will utilize this new creation unit limit for CHAD due to the limited availability of certain necessary investments or financial instruments used to provide requisite inverse exposure to the CSI 300 Index. Redemption orders for the Fund will not be affected, and will continue to be accepted in the ordinary course of business.
Should demand exceed supply during the period that creation units are limited, the fund could trade at a premium to its net asset value (NAV).
About Direxion Investments
Direxion Investments offers highly liquid, tactical and strategic institutional-quality ETFs and mutual funds for investors seeking to solve for better investment outcomes. Founded in 1997, the company has approximately $9.4 billion in assets under management as of March 31, 2015. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.
There is no guarantee that the funds will achieve their objectives.
For more information on all Direxion Shares daily leveraged ETFs, go to direxioninvestments.com, or call us at 866-476-7523.
The ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investments. Due to the daily nature of the leverage employed, there is no guarantee of amplified long-term returns. Past performance is not indicative of future results.
An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs. Download a prospectus and summary prospectus at direxioninvestments.com. The prospectus and summary prospectus should be read carefully before investing.
There are special risks associated with investments in Chinese companies including, but not limited to, exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards, the nature and extent of intervention by the Chinese government in the Chinese securities markets, uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-shares could result in unexpected tax liabilities for the fund which may reduce fund returns. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the fund to achieve its investments objective. There is potential for unavailability of A-shares to which the fund will seek to obtain exposure through investing in other investment companies. A-shares are issued by companies incorporated in the People's Republic of China ("PRC"). The A-share market in China is made available to domestic PRC investors and certain foreign investors, including those foreign investors that have been approved as Renminbi Qualified Foreign Institutional Investors ("RQFII") or as Qualified Foreign Institutional Investors ("QFII"). The Fund's ability to achieve its investment objective is dependent on the ability of other ETFs and counterparties to obtain their QFII or RQFII quota. If the fund is unable to obtain sufficient leveraged exposure to the CSI 300 due to the limited availability of necessary investments or financial instruments, the fund could, among other things, as a defensive measure, limit or suspend creation units until the adviser determines that the requisite exposure to the index is obtainable. During the period that creation units are suspended, the fund could trade at a significant premium or discount to its NAV and could experience substantial redemptions. Please see the Summary and full Prospectuses for a more complete description of these and other risks of the Fund.
Distributor: Foreside Fund Services, LLC.
SOURCE Direxion Investments
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