GreenHaven has announced the launch of the GreenHaven Coal Fund, the first Exchange Traded Product (ETP) designed to offer investors with exposure to daily changes in the prices of coal futures contracts.
Cooper Anderson, Chief Financial Officer of GreenHaven Coal Services, LLC, commented: “As the first single-commodity coal ETP, TONS offers investors access to a global market that before now has generally been accessible only to institutions and traditional coal companies. Coal is an asset class that helps to generate one-third of the world’s electricity, and TONS is designed to provide investors and hedgers alike with exposure to daily changes in the price of coal futures”.
The Fund’s investment strategy is to provide investors with exposure to the daily change in the price of coal futures contracts in a cost-effective manner, and to permit participants in the coal or other industries to hedge the risk of losses in their coal-related transactions. The Fund will seek to achieve its investment objective by purchasing Rotterdam coal futures contracts that are traded via the CME Group, Inc. trading platforms to the greatest extent possible, without being leveraged or exceeding relevant position limits. The Fund’s portfolio will be traded with a view to reflecting the performance of coal futures contracts, whether coal futures are rising, falling or flat over any particular period.
In recognition of the launch of the GreenHaven Coal Fund, executives from GreenHaven are scheduled to rind the NYSE Opening Bell on 4 March 2015.
Adapted from a press release by Emma McAleavey.