How do assets flow between the two portfolios?
The paired trust structure permits the pledging (through settlement contracts and income distribution agreements) of short-term U.S. Treasuries and short-term collateralized repurchase agreements (short-term investments) along with accrued income between the MacroShares Up and Down trusts. Thus, safe, liquid, interest-earning assets shift between the Up MacroShares trust and the Down MacroShares trust over time, according to a predetermined formula that is driven by changes in the reference index. Please refer to the prospectus for additional details.
Related Questions
- Do the staff members of AlphaProfit Investments, LLC invest their assets to track the model portfolios outlined in the AlphaProfit Sector Investors Newsletter?
- Why do institutional and wealthy individual investors generally allocate a portion of their portfolios to alternative assets such as private equity?
- Is it possible to move assets beteween portfolios?
