【正文】 ed of roughly equal percentages of corn, wheat, soybean, and sugar futures contracts. Slide 43 Selected ETNs ? PowerShares DB Gold Double Long ETN (DGP): seeks to replicate, of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is prised of a single unfunded gold futures contract. ? UBS ETRACS CMCI Silver TR ETN (USV): seeks to track the price and performance yield, before fees and expenses, of the UBS Bloomberg CMCI Silver Total Return index. The fund is designed to be representative of the entire liquid forward curve of the silver contracts. The index measures the collateralized returns from a basket of silver futures contracts. It is prised of the silver futures contracts included in the CMCI with five target maturities. ? iPath DJUBS Platinum TR SubIdx ETN (PGM): seeks to replicate, of expenses, the Dow JonesUBS Platinum Total Return SubIndex The index is intended to reflect the returns that are potentially available through an unleveraged investment in platinum futures contracts as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. ? iPath DJUBS Energy TR SubIdx ETN (JJE): seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow JonesUBS Energy Total Return SubIndex. The note is designed to reflect the performance of energyrelated modities. The index is posed of four futures contracts: crude oil, heating oil, natural gas and unleaded gasoline. Slide 44 Selected ETNs ? iPath Samp。€“ Agriculture Total Return index. The index represents the value of a basket of 20 agricultural modity futures contracts. Slide 42 Selected ETNs ? iPath DJUBS Prec Metals TR SubIdx ETN (JJP): seeks to replicate, of expenses, the Dow JonesUBS Precious Metals Total Return SubIndex. The index is intended to reflect the returns that are potentially available through an unleveraged investment in gold and silver futures contracts as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills.. ? UBS ETRACS Samp。 Gas Exploration amp。P Oil amp。P Global Energy (IXC): seeks investment results that correspond closely to the performance, before fees and expenses, of the Samp。€”gold and silver. The index is intended to reflect the performance of the precious metals sector. ? Ultra Silver ProShares (AGQ): will seek to replicate, of expenses, twice the performance of silver bullion as measured by the . Dollar fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective. ? Energy Select Sector SPDR (XLE): includes panies from the following industries: oil, gas, energy equipment amp。 World . USA Today, 25 June 2021. Web. 14 July 2021. 28. Yearly Gold Prices Since 1793. Gold Coins Gold Information Network. ., . Web. 23 July 2021. 29. ZWEIG, JASON. The Intelligent Investor: Should You Bet on Rising Risk? . Business News amp。sec=topstoriesamp。 news Google Finance. Google. ., . Web. 14 July 2021. 3amp。A Suggested Hedging Strategy for A Changing Market Using ETFs, ETNs, and Closedend Investment Companies by Ronald E. Copley, Phd, CFA Copley Investment Management 5025 B Wrightsville Ave, Wilmington, NC 28403 E: CIIA 10th Anniversary Seminar The Securities Analysts Association of Japan November 11, 2021 Presentation Overview ? How the Lehman Brothers bankruptcy changed portfolio management from dealing with risk to dealing with uncertainty ? Copley Investment Management’s Hedge Strategy—an overlay strategy designed to provide insurance to an existing portfolio using newly introduced instruments Slide 2 Portfolio Management Before and After Crisis ? Before crisis, portfolio managers: ? Assumed measurable risk (. normal distribution) ? Based decisions on historical data assuming future would look like the past (mean reversion) ? Had false impression that they could insure against default using Credit Default Swaps ? After crisis, we learned hard lessons that: ? Black swan events and six sigma events introduced immeasurable uncertainty ? Hedging strategies have bee increasingly important Slide 3 Financial Crisis Overview ? Worst crisis since the Great Depression ? Greenspan Caused by the “Under pricing of risk worldwide” ? Risk management models inability to manage the risk of the entire financial system breaking down (systematic risk) Slide 4 Effects of Lehman Failure ? Questions that came about: ? What is the proper role of government? ? What is the proper amount of regulation? ? Should government bailout the private sector? ? What is acceptable level of debt—private and public? ? Are credit rating agencies truly independent? ? Should the Fed act before or after bubble occurs? ? Is capitalism flawed? Slide 5 Why Lehman went Bankrupt ? Large positions in subprime mortgages ? High Leverage Ratio: : 1 ? Small loss in value of the mortgages’ underlying assets destroys their equity ? Example: Asset decline of only 34% would wipe out all equity Slide 6 Lehman Bankruptcy ? On Sept. 15 2021 Lehman Brothers filed for bankruptcy protection ? DJIA closed down over 500 points (%) ? Largest point decline since 9/11 attacks at the time ? Largest bankruptcy in . history ? $613 billion Slide 7 Changes in Portfolio Management ? More defensive and more active ? Renewed interest in diversifi