BNP Paribas to offer $625 million of S&P Dynamic Roll Global Commodities units at $25 each

By Toni Weeks

San Diego, Dec. 2 - BNP Paribas S&P Dynamic Roll Global Commodities Fund has registered a $625 million offering of units in an S-1/A filing with the Securities and Exchange Commission.

The fund, which is one of two series comprising the BNP Paribas Exchange Traded Trust, plans to sell 25 million of units at $25 per unit. The second series, the BNP Paribas Enhanced Volatility Fund, is not part of the offering.

Qualified financial institutions may purchase units in baskets, which are blocks of 40,000 shares. The shares will trade on the NYSE Arca under the symbol "BNPC."

BNP Paribas Securities Corp. will purchase 600,000 of the shares.

The fund seeks to track changes in the level of the S&P GSCI Dynamic Roll Excess Return index by investing in exchange-traded futures on the index commodities comprising the index. The index aims to reflect the return of an investment in a world production-weighted portfolio consisting of the physical commodities that are the subject of active, liquid futures markets.

The fund will be subject to fees and expenses of about 1.24% per year, and the fund will be required to earn about 1.24% per year to break even on investments during the first year.

The fund's manager is New York-based BNP Paribas Quantitative Strategies, LLC.

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