Claymore/Ocean Tomo Growth Index ETF Introduced on the American Stock Exchange
CHICAGO--(BUSINESS WIRE)--Ocean Tomo, LLC, the Chicago-based provider of diversified intellectual property-related services, today announced the Ocean Tomo 300® Patent Growth Index is now available to investors through Claymore Securities, Inc.’s new exchange-traded fund, the Claymore/Ocean Tomo Growth Index ETF. The new ETF will begin trading on the American Stock Exchange® (Amex®) today, under the symbol OTR.
“We are very pleased to build on the success of our broad-based Ocean Tomo 300 Patent Index,” said Keith Cardoza, Managing Director of Ocean Tomo, and Chief Investment Officer of Ocean Tomo Asset Management. “We believe our growth index will bring into even sharper focus, the impact of innovation in the economy, and allow investors to participate in the market in a powerful way.”
Scott Ebner, Senior Vice President of the Amex ETF Marketplace said, “The American Stock Exchange continues to take a leadership role in helping to create and maintain innovative indexes and products by working with partners like Ocean Tomo and Claymore Securities, Inc. The Claymore/Ocean Tomo Growth Index ETF offers investors access to potential growing opportunities in the intellectual property universe.”
About the Ocean Tomo 300® Patent Growth Index
The Ocean Tomo 300® Patent Growth Index selection process is designed to identify six companies in each of ten market capitalization deciles with the highest price-to-book ratio from the universe of companies that are members of the Ocean Tomo 300® Patent Index. The resulting 60 companies form the Index. The Index is market capitalization weighted, with a maximum exposure to any individual stock capped at 15%. Any excess weighting is distributed according to the appropriate pro rata share to the remaining stocks within the Index that are below the 15% threshold. The Index is reconstituted annually after the close of business on the last day of October.
The Index constituent selection methodology was developed by Ocean Tomo as a quantitative approach to selecting stocks in a diversified portfolio from a group of listed equities. The Index member selection model evaluates and selects stocks on the basis of the value of their intellectual property, specifically their patent valuations, using Ocean Tomo’s PatentRatings® software, from a universe of U.S. listed stocks using a proprietary, 100% rules-based methodology developed by Ocean Tomo.
Ocean Tomo, LLC has granted Claymore Advisors, LLC. , the Investment Adviser of the ETF and a wholly owned subsidiary of Claymore Securities, Inc., the rights to license the Ocean Tomo 300® Patent Growth Index for the creation of the Claymore/Ocean Tomo Growth Index ETF (Amex:OTR).
About Ocean Tomo, LLC
Established in 2003, Ocean Tomo, LLC (www.oceantomo.com) is a fully integrated intellectual capital merchant banc that specializes in understanding and leveraging intellectual property assets. The company provides advice in IP-related mergers and acquisitions, valuations, expert services, analytics and IP auctions. Ocean Tomo has offices in Chicago, San Francisco, Palm Beach, Orange County and Washington, DC. Subsidiaries of Ocean Tomo include: Ocean Tomo Capital, LLC, publisher of the Ocean Tomo 300® Patent Index (Amex:OTPAT); Ocean Tomo Capital Fund, LP -- a private equity investment fund; and Ocean Tomo Asset Management, LLC -- a federally registered investment advisor offering hedge funds utilizing IP-based investment strategies.
Investors should consider the following risk factors and special considerations associated with investing in the fund, which may cause you to lose money.
Investment Risk: An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest.
Equity Risk: A 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 invests.
Patent Risk: The companies in which the Fund invests can be significantly affected by patent considerations, including the termination of their patent protection for their products. Certain of such companies’ industries may be characterized by the existence of a large number of patents and frequent claims and related litigation regarding patent rights. Certain such companies may depend on rapidly identifying and seeking patent protection for their discoveries. The process of obtaining patent protection is expensive and time consuming. Furthermore, there can be no assurance that the steps taken by such companies to protect their proprietary rights will be adequate to prevent misappropriation of their proprietary rights or that competitors will not independently develop products that are substantially equivalent or superior to such companies’ products.
Foreign Investment Risk: The Fund’s investments in non-U.S. issuers, although limited to ADRs, may involve unique risks compared to investing in securities of U.S. issuers, including, among others, less market liquidity, generally greater market volatility than U.S. securities and less complete financial information than for U.S. issuers.
Medium-sized Company Risk. Investing in securities of medium-sized companies involves greater risk than is customarily associated with investing in more established companies. These companies’ stocks may be more volatile and less liquid than those of more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market.
Non-Correlation Risk: The Fund’s return may not match the return of the Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to the Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of the Index.
The Fund may not be fully invested at times, either as a result of cash flows into the Fund or reserves of cash held by the Fund to meet redemptions and expenses. If the Fund utilizes a sampling approach or futures or other derivative positions, its return may not correlate as well with the return on the Index, as would be the case if it purchased all of the stocks in the Index with the same weightings as the Index.
Replication Management Index: Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell a stock because the stock’s issuer was in financial trouble unless that stock is removed from the Index.
Issuer-specific Changes: The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers.
Non-Diversified Fund Risk: The Fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.
Investors buying or selling ETF shares on the secondary market may incur brokerage costs and other transactional fees. Shares of ETFs may fluctuate in price due to daily changes in trading volume. At times, shares may not have a high volume of trading. Except when aggregated in creation units, shares are not redeemable securities of the Fund.
The Funds issue and redeem shares at NAV only in large blocks of 50,000 shares (each block of 50,000 shares is called a “creation unit”) or multiples thereof. Only broker-dealers or large institutional investors with creation and redemption agreements, called authorized participants (“APs”), can purchase or redeem these Creation Units.
Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the ETFs carefully before they invest. The prospectus contains this and other information relevant to an investment in the ETFs. Please read the prospectus carefully before you invest or send money. For this and more information, please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999 or www.claymore.com/etfs
Contacts
Ocean Tomo, LLC
Kristi Stathis, 773-294-4360
kstathis@klsedition.com
