SELIGSON & C0 OMX HELSINKI 25 EXCHANGE TRADED FUND

OMX Helsinki 25 ETF is an exchange traded fund. The fund units are listed on the Helsinki Stock exchange for continuous trading.

The investment policy for theOMXH25 ETF OMXH25 ETF is to track the OMX Helsinki 25 index, which is the blue chip-index of Finland. The fund aims to provide a simple and cost effective way to invest in a diversified stock portfolio consisting of the 25 most liquid stocks on the Helsinki Stock Exchange with one single trade.

You can trade ETF:s like any stock and it can be bought and sold via the trading members of the exchange found at: http://omxgroup.com/digitalAssets/26153_Members_of_Helsinki
Stock_Exchange_20070516.pdf
You need a securities account for the units. The fund units are not subscribed or redeemed like normal fund units, but the trading is done through the stock exchange.

The Seligson & Co OMX Helsinki 25 ETF offers many advantages to its investors:

1. Cost-effective

The management fee for the Seligson & Co OMX Helsinki 25 ETF varies between 0,11 % and 0,18 % p.a. depending on the size of the fund, which is world class in cost-effectiveness. Additionally, the fund lends its stocks in order to receive gains from the stock lending contracts. This covers for a portion of the management fee.

N.B! There are costs related to buying and selling the ETF units in the same way as there are costs for trading with stocks. The broker takes its commission for each trade, and there is also a spread between the bid and ask prices, which is a cost for the investor. Especially when trading smaller amounts, the proportional part of the trading commissions can be substantial due to minimum fees.

2. Diversification

With the Seligson & Co OMX Helsinki 25 ETF, you get a good diversification over 25 most traded stocks on the Helsinki Stock Exchange with only one trade. Diversification has been shown to be a very effective way to reduce the risk associated with stock investments. Diversification does not reduce the expected return, it reduces only the volatility of the return.

3. Know your investment

Do you know what stocks your funds are currently holding? What about when the holdings are changed and on what grounds? The OMX Helsinki 25 index calculated by OMX is a blue chip index consisting of the 25 most traded equities on the Helsinki Stock Exchange. The index is a weight capped index, where no stock can have a weight larger than 10 % of the index. The index stock components are reviewed twice a year and the weights are reviewed four times a year.

The OMXH25 ETF aims to hold the shares in the OMXH25 index with identical weights, which means that changes in the fund value follow the changes in teh index (the fund receives dividends from the shares it holds, and this cash component results in a slight difference in the returns for the fund and the index). The composition of the OMXH25 index and the rules for the index calculation can be found on the OMX Website www.omxnordicexchange.com The composition of the fund is published on these pages as a creation unit.

4. Liquid investment

The Seligson & Co OMX Helsinki 25 ETF has a very liquid structure, since it contains the 25 most liquid stocks on the Helsinki Stock Exchange. The ETF units are also liquid thanks to the market maker. If, however, there aren’t enough units on the market at any given moment, the investor can also subscribe to large amounts of units through a primary broker on the primary markets. The minimum investment on the primary market is 25.000 units. You can read more about the primary subscription here.

5. Functional derivative markets create many possibilities

The OMX Helsinki 25 index is a derivative market index, which means that e.g. buy and sell options are available for the index. Thus, the owners of OMXH25 ETF units may for example cover their positions from market declines by buying sell options.

6. More profits with stock and unit lending

The OMXH25 ETF aims to lend its stocks as frequently as possible in order to generate profits for its owners. Furthermore, unit holders may lend their units to those wishing to borrow units and this way gain some extra return on their investment.

Questions? Please e-mail us at etf@seligson.fi