Barclays Global Investors Temporarily Suspends Issuance of iShares[R] S&P GSCI[TM] Commodity-Indexed Trust (GSG).SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Barclays Global Investors Barclays Global Investors is a subsidiary of British-based Barclays Bank which is in the investment management industry. It is the largest corporate money manager in the world, with over £936 billion (US$1.77 trillion) under management as of March 2006[1]. (BGI BGI Barclays Global Investors BGI Bainbridge Graduate Institute BGI Bureau Gravimétrique International BGI Borland Graphic Interface (File Name Extension) BGI Bridgetown, Barbados - Grantley Adams International ) announced today that it has temporarily suspended further creation of new shares of iShares S&P GSCI GSCI Goldman Sachs Commodity Index GSCI Georgia School Council Institute GSCI General Starlight Co., Inc. GSCi German Scientific Computing Initiative GSCI Gulf States Counterdrug Initiative Commodity-Indexed Trust (the "Trust"). The Trust is listed and trades on the NYSE Arca For other uses of "ARCA", see ARCA. NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an entirely online securities exchange on which both stocks and options are traded. under the ticker GSG GSG Grenzschutzgruppe (German: Border Protection Unit; anti-terrorist group) GSG Global Scenario Group GSG Goldman Sachs Group, Inc. GSG Gunslinger Girl (anime) GSG Ground-Signal-Ground . As disclosed in the Trust's prospectus, a suspension may cause the market price of the Trust's shares to vary more from the Trust's net asset value than historically. Redemptions by eligible shareholders of the Trust will not be affected by this suspension. The Trust seeks performance that corresponds generally to the performance of the S&P GSCI(TM) Total Return Index before expenses. The S&P GSCI(TM) Total Return Index is intended to reflect the performance of a diversified group of commodities. The temporary limitation on issuance of new shares may impair traders' ability to balance the supply and demand for the Trust's shares in the secondary market, which may cause the shares to trade at a premium or discount in relation to the Trust's net asset value. "We are actively working with regulators, product partners and exchanges to explore solutions that will lead to resumption of the creation of new shares of the iShares S&P GSCI Commodity-Indexed Trust to satisfy demand," said Michael Latham, Co-CEO of iShares at Barclays Global Investors. "We've taken this temporary step to protect existing investors from being adversely affected by market reaction to proposed new regulations of commodity futures that have created uncertainty. Just as we were able to design a product that gave investors access to difficult-to-reach markets using a combination of significant talent, resources and perseverance under one set of regulatory guidelines, we are pursuing a solution for investors that will adjust to any new environment that results from proposed new regulations." The Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. can be found on EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. , the SEC website at: www.sec.gov, as well as on the product's web page at www.iShares.com. The iShares[R] S&P GSCI(TM) Commodity-Indexed Trust (the "Trust") and the iShares[R] S&P GSCI(TM)Commodity-Indexed Investing Pool ("Investing Pool"), in which the Trust invests all its assets, are each commodity pools as defined in the Commodity Exchange Act and the applicable regulations of the CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). . The Sponsor of the Trust is Barclays Global Investors International, Inc., ("BGII BGII Baldur's Gate II: Shadows of Amn (computer game) "), a commodity pool operator ("CPO (Chief Privacy Officer) An individual who manages the privacy issues within an organization. Arising out of the privacy regulations in finance and health care in the late 1990s, the CPO position eventually crossed over to all industries. ") registered with the CFTC. BGII is also the Manager and CPO of the Investing Pool. Barclays Global Fund Advisors ("BGFA BGFA Barclays Global Fund Advisors BGFA Boston Globe Freelancers Association BGFA Barbados Game Fishing Association BGFA Belize Game Fishing Association BGFA Bulk Glass Forming Ability BGFA Berufsgenossenschaftliches Forschungsinstitut for Arbeitsmedizin ") serves as the commodity trading advisor Commodity Trading Advisor An investment manager that focuses on long and short trading in the futures markets. The trades are often intraday trades. Sometimes referred to as Managed Futures. of the Investing Pool and is registered with the CFTC. BGFA is a subsidiary of Barclays Global Investors, N.A. ("BGINA"), a national banking association and the Trustee. BGII and BGINA are majority-owned affiliates of Barclays Bank PLC. Neither the Trust nor the Investing Pool is an investment company registered under the Investment Company Act. Investments in shares of the Trust are speculative and involve a high degree of risk. You could lose all or a substantial portion of your investment in the shares of the Trust. Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus. The value of the shares of the Trust, which seeks to track the S&P GSCI(TM) Total Return Index ("Index"), depends on the value of CERFs held by the Investing Pool, which are futures contracts on the S&P GSCI(TM) Excess Return Index ("S&P GSCI-ER"), and will fluctuate based on the prices of commodity futures contracts Commodity Futures Contract An agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the product or raw material, while sellers try to lock in a price for their products. reflected in the S&P GSCI-ER. Commodities markets have historically been extremely volatile. Shares may outperform or underperform the Index. The price you receive upon the sale of your shares may be less than their NAV See navigation system and navigation bar. . The NAV will fluctuate with changes in the market value of the Investing Pool's assets, and market supply and demand. Brokerage commissions and fees will reduce returns. Although shares of the Trust may be bought or sold on the exchange through any brokerage account Brokerage Account An arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage, which then carries out the transactions on the investor's behalf. , shares of the Trust are not redeemable from the Trust except in one or more blocks of 50,000 units called Baskets. Only institutions that become Authorized Participants may purchase or redeem Baskets. Shares of the Trust may not provide the anticipated benefits of diversification from other asset classes. The lack of an active trading market for the shares may result in losses on your investment at the time of disposition of your shares. The Trust and the Investing Pool have no operating history. Therefore, there is no performance history to serve as a factor for evaluating an investment in the shares. The iShares S&P GSCI Commodity-Indexed Trust issues shares representing fractional undivided beneficial interests in its net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. . The Trust is registered under the Securities Act of 1933 of the United States but is not registered for distribution, or traded, anywhere outside the United States. Please note that, since the shares of the Trust are expected to reflect the price of commodities, as described more fully in the prospectus, held by the Trust, the market price of the shares will be as unpredictable as the price of those commodities have historically been. The price received upon the sale of shares of the iShares S&P GSCI Commodity-Indexed Trust, which trade at market price, may be more or less than the value of the commodities represented by them. If an investor sells the shares at a time when no active market for them exists, such lack of an active market will most likely adversely affect the price received for the shares. For a more complete discussion of risk factors relative to the iShares S&P GSCI Commodity-Indexed Trust, carefully read the prospectus. Following an investment in the iShares S&P GSCI Commodity-Indexed Trust, several factors may have the effect of causing a decline in the prices of the commodities and a corresponding decline in the price of the shares. Among them: (i) a change in economic conditions, such as a recession, can adversely affect the price of the commodities. These commodities are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the iShares; (ii) a significant change in the attitude of speculators and investors towards the commodities. Should the speculative community take a negative view towards the commodities, a decline in world commodities prices could occur, negatively impacting the price of the Trust; (iii) a significant increase in the commodity price hedging activity by commodities producers. The Trust is not sponsored, endorsed, sold, or promoted by Standard & Poor's or its affiliates. Neither Standard & Poor's, nor its affiliates, make any representation regarding the advisability of investing in the Trust. [c] 2009 Barclays Global Investors N.A. All rights reserved. iShares([R]) is a registered trademark of Barclays Global Investors N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. |
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