Investment category – duETS are synthetic private alternative investments for U.S. Qualified Institutional Buyers (QIBs) and offshore investors through a continuous unregistered private offering. Currently, duETS are not publicly listed for trading, but they may be traded under Rule 144A and Regulation S for non-U.S. investors.
Open-ended Structure – duETS are open-end and can be created or redeemed based on demand. To create new securities, QIBS, though duETS exclusive broker-agent, CBRE, exchange cash-for-securities in baskets consisting of 5,000 Down and 5,000 Up securities for a combined amount equal to the NAV of all securities in the basket. The redemption process is the opposite, securities-for-cash. Baskets of 5,000 Down and 5,000 Up securities are redeemed for cash for a combined amount equal to the NAV of all securities in the basket.
Secondary market trading – duETS may be traded by Qualified Institutional Buyers (QIBs) and offshore investors to other QIBs and offshore investors without restriction. CBRE will serve as the exclusive broker-agent in seeking to match buyers and sellers. GIG, the custodian bank, and ComputerShare, Inc. will handle trade administration and reporting. All trades are reported to ComputerShare, and they also are posted on GIG’s public website and by nationally recognized data providers.
NAV – The Net Asset Value (NAV) associated the duETS linked to a particular measurement period is expected to remain relatively stable. It is calculated as the value of assets held in respect of such duETS. The series is limited under the trust instrument to holding only (1) cash and (2) bills, bonds and notes issued and guaranteed by the United States Treasury (“eligible Treasuries” and together with cash, “Eligible Assets”). See PPM Section I– “Overview– Use of Proceeds” and Section VII– “Description of the Series Eligible Assets.” assets held – short-term U.S. Treasuries and interest on them – less expenses and any accrued taxes, including an annual management fee (0.85%). The amount of interest earned generally increases with prevailing interest rates. At Valuation Dates, NAV is allocated by formula between Down and Up securities, based on the index level on the given date.
Securities-rolling at Valuation Date – GIG has developed a patent-pending design for valuing securities at each Valuation Date, so that securities holders can maintain their exposure to real estate (Down or Up) over extended periods. Valuation Dates occur every two calendar years, at which point security values are aligned with index values. For each series, the Valuation Date is the last day of the two-year Measuring Period. At the end of each Measuring Period, investors may either cash out their securities or allow their securities to convert into securities linked to the subsequent Measuring Period (the “Succeeding Measuring Period”). Please Contact Us to receive the PPM.