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Advisors Asset Management to price WealthNotes ETNs linked to S&P 500 130/30 for Eksportfinans
By Angela McDaniels
Tacoma, Wash., July 22 - Eksportfinans ASA plans to price up to $1 billion of 0% WealthNotes exchange-traded notes due 2023 linked to the S&P 500 130/30 Total Return Strategy index via Advisors Asset Management, Inc., according to a 424B5 filing with the Securities and Exchange Commission.
The index was developed to follow an investment strategy in which the portfolio commits 30% of its capital to offsetting allocations in short and leveraged long positions. It is rebalanced quarterly and is made up of a core 100% long position in the S&P 500 index, 1% underweight positions in 30 S&P 500 constituent stocks and 1% overweight positions in 30 S&P 500 constituent stocks.
The face amount of each note will be $40, and the initial issue is expected to price at 100.39. Additional issues will price from time to time.
The payout at maturity will be par plus the index return minus the investor fee.
The investor fee will initially equal zero. On each day, the fee will increase by an amount equal to the fee percentage plus the index return on that day divided by 365. The fee percentage will initially be 0.95% per year. After March 1, 2009, it may be increased to a maximum of 1.39% per year.
The notes will be putable on Friday of each week, subject to a minimum of $5 million of securities. Investors will receive par plus the index return minus the investor fee and minus the early redemption fee, which equals 0.125% of par multiplied by quotient of the final index level divided by the initial index level.
The notes will be listed on the New York Stock Exchange under the symbol "WNF."
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