Stone Asset Management Limited Announces Alternative Investment Strategy
September 13 2012 - 3:36PM
Marketwired Canada
Stone Asset Management Limited ("SAM"), the Manager of the Stone Agribusiness
Fund (TSX:HAY) announced today that on or about October 16, 2012, the Stone
Agribusiness Fund plans to introduce an alternative investment strategy relating
to its exposure to agricultural commodities. The Stone Agribusiness Fund
currently achieves its exposure to agricultural commodities through its
investment in the Price Agricultural Fund L.P. (the "RICI(R)-A Fund"), an
investment vehicle that was designed to replicate the performance of the Rogers
International Agriculture Commodity Index. Prior to October 31, 2011, the
initial clearing broker for the RICI(R)-A Fund was MF Global Inc. and a minimal
portion of the cash of the RICI(R)-A Fund held at MF Global, as previously
disclosed, remains unrecovered. A trustee has been appointed to oversee the
recovery of MF Global's client deposits. As a result, SAM identified alternative
investment strategies to maintain exposure to agricultural commodities and limit
counterparty risk.
The investment strategy being introduced involves investments in or based on
exchange-listed securities designed to replicate the Rogers International
Agriculture Commodity Index with comparable or reduced tracking error. It is
expected that the costs to execute this investment strategy will not be more
than those associated with the operation of the RICI(R)-A Fund. The Stone
Agribusiness Fund will continue to achieve its investment objective of providing
exposure to agricultural commodities that comprise the Rogers International
Agriculture Commodity Index together with investments in equity securities in
the agricultural sector. SAM intends to reduce the Fund's exposure to the
RICI(R)-A Fund within the next six months. This change is being made pursuant to
the terms of the Declaration of Trust of the Stone Agribusiness Fund.
The Stone Agribusiness Fund is a TSX-listed closed-end fund whose investment
objective is to provide investors with long-term capital appreciation through an
actively managed, diversified portfolio of publicly listed securities of issuers
that provide exposure to the agriculture sector and exposure to agriculture
commodities.
In addition to the Stone Agribusiness Fund, SAM manages a family of open-ended
mutual funds and a series of flow-through limited partnerships. SAM specializes
in structuring and managing high quality investment products and currently has
approximately $700 million in assets under management.
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