On January 6th, a final distribution payment will be made to the UMM and DMM shareholders of record as of December 31st based on the underlying value of the Up and Down MacroShares Trusts. The underlying value of the trusts will be determined based on the November 24, 2009 release of the Reference Value of the S&P/Case-Shiller Composite-10 Home Price Index, plus or minus any interest and expenses accrued in the trust for the period.
The final distributable amounts are as follows:
UMM: $21.86689
DMM: $24.9506
Total: $46.816950
MacroShares Major Metro Housing Up (UMM) allow investors to express a bullish view on the movement of the S&P/Case-Shiller Composite-10 Home Price Index. The underlying value (UV) of UMM tracks the percentage change of the index with three times leverage. The market price of UMM reflects other factors, including consensus expectations of the cumulative return of S&P/Case-Shiller Composite-10 Home Price Index, plus potential quarterly net income distributions, over the remaining term of the security.
MacroShares Major Metro Housing Up funds are collateralized via a trust secured by investments in short-term U.S. Government obligations, overnight repurchase agreements secured by Treasuries and cash. This trust collateral generates automatic income distributions for MacroShares investors to the extent that trust income exceeds trust expenses within a quarterly period.
Benefits
MacroShares Major Metro Housing Up enables institutions and consumers to manage existing housing market exposure, or easily diversify portfolio returns with a home price-linked investment that does not entail the inconveniences and costs of transacting in real property.
- Underlying Value tracks percentage changes in the S&P/Case-Shiller Composite-10 Home Price Index
- Market price reflect investor expectations beyond the near-term
- Exchange-traded; intraday liquidity
- Portfolio diversification
- No issuer credit risk, no hidden counterparty risks, no futures contract roll costs
- Fully-collateralized investment backed by U.S. Treasuries, overnight repurchase agreements secured by Treasuries and cash
- Income from Treasury collateral defrays trust expenses, can produce quarterly distributions, and is exempt from state and local taxes
Profile
| Symbol (Click for Intraday Price) |
UMM
|
| Exchange | NYSE Arca |
| CUSIP | 55610R106 |
| Trust Inception Date | 4/11/09 |
| Trust Maturity Date1 | 11/25/14 |
| Par Amount | $25.00 |
| Trust Inception UV | $20.02 |
| Distribution Frequency, if any | Quarterly |
| Expense Ratio2 | 1.25 % |
| Reference Index | S&P/Case-Shiller Composite-10 Home Price Index |
| Reference Index Range3 | 108.11 to 216.23 |
| Initial Reference Price | $162.17 |
1 Unless earlier redeemed on a redemption date or an early termination date, a final distribution will be made on these MacroShares on November 25, 2014. Please refer to the prospectus for more information concerning early termination triggers.
2 Excludes a fixed trust fee that diminishes on a per-share basis as fund assets under management grow. These and other details can be found in the prospectus.
3 The Reference Index Range is the maximum performance range of the Reference Index that can be tracked by the Underlying Value of the Major Metro MacroShares. If the Reference Index rises to or above 216.23 or falls to or below 108.11, and, in either case, the Reference Index remains at or above that level (or at or below that level, as applicable) for three consecutive price determination days, these securities will terminate but continue to trade until an announced date, and then be redeemed on the next distribution date. For more information regarding this and other termination triggers, please read the prospectus