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FAQs

When American investors purchase ADRs they not only have exposure to changes in the share price but also to the movements of the foreign currency relative to the US$. ADRHs have an embedded currency hedge to mitigate this risk. Note that some tracking discrepancies, positive or negative, may arise due to the spread embedded in the FX forward rate used to provide the hedge, as well as the difference between short-term interest rates in the United States and the country where the company is located.
ADRHs are exchanged-traded and as such can be bought or sold like any other exchange traded security. Generally, liquidity is the ability to buy or sell an asset easily and at its current value. With ADRHs, liquidity is a function of the volume of the underlying foreign shares and ADRs since ADRHs can be created from and redeemed into, the underlying ADR. This is identical to the trading mechanics that apply to all exchange traded funds (ETFs). In order to provide market liquidity, ADRHs will hold highly liquid ADRs. Best practices when buying or selling ADRHs are similar to those for all ETFs and could include placing a limit order, which specifies the price at which the investor is willing to buy or sell the ADRH, but investors also have the option to place market orders to buy or sell.
Any dividends paid on the reference ADRs underlying the ADRH will be paid to ADRH investors in US dollars, which may be subject to withholding in the same manner as if the underlying shares were directly held by the investor.

ADRHs have an annual fee of 0.19% of the value of your investment. There is also a cost associated with the currency hedge, which will be reflective of market conditions similar to other currency hedged investments.

Every investor must consider their own tax advice and Precidian does not offer tax advice. It is the expectation that the US tax consequences of owning ADRHs will be the same as if the investor held the underlying ADR and an associated currency hedge. Taxes may be withheld by the issuing companies of the ADRs
where required by the local or national government or tax authority.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call(844) 954-5333 or visit our website at www.adrhedged.com. Read the prospectus or summary prospectus carefully before investing. As with any investment, you could lose all or part of your investment in the Series, and the Series performance could trail that of other investments.

Market Risk. The prices of the securities in the Series are subject to the risk associated with investing in the stock market, including sudden and unpredictable drops in value. An investment in the Series may lose money.

Currency Hedging Risk. Because changes in foreign currency exchange rates affect the value of ADRs, the Series enters into the Currency Hedge Contract in order to seek to minimize the impact of fluctuations in the exchange rate between the U.S. dollar and the Local Currency. While this approach is designed to minimize the impact of currency fluctuations on Series returns, it does not necessarily eliminate the Series exposure to the Local Currency. Currency hedges are sometimes subject to imperfect matching between the Currency Hedge Contract and the currencies that the contract intends to hedge, and there can be no assurance that the Currency Hedge Contract will be effective. The return of the Currency Hedge Contract will not perfectly offset the actual fluctuations between the Local Currency and the U.S.

Currency Swap Risk. In order to hedge currency risk, the Series enters into a Currency Hedge Contract. The Currency Hedge Contract is subject to market risk, risk of default by the other party to the transaction, known as “counterparty risk,” and risk of imperfect correlation between profit or loss on the Currency Hedge Contract and the underlying currency exchange rate

Issuer Concentration Risk. Because the Series only invests in the ADRs of the Company and the Currency Hedge Contract, the Series may be adversely affected by the performance of the Company, subject to increased price volatility and more susceptible to adverse economic, market, political or regulatory occurrences affecting the Company or industry.

Foreign Market Risk. Because non-U.S. exchanges may be open on days when the Series does not price its Shares, the value of the underlying securities of the ADRs in the Series portfolio may change on days when Shareholders will not be able to purchase or sell the Series Shares, regardless of whether there is an active U.S. market for Shares.

Non-Diversification Risk. The Series is non-diversified and holds Portfolio Securities of only one particular issuer. As a result, the Series may have greater volatility than other diversified funds

Management Risk. The Series is subject to the risk that the Manager’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results.

New Series Risk. As of the date of this prospectus, the Series has no operating history and currently has fewer assets than larger funds.Like other new funds, large inflows and outflows may impact the Series market exposure for limited periods of time. This impact maybe positive or negative, depending on the direction of market movement during the period affected.

Distributor: Foreside Fund Services, LLC