Transparent Value plans its Dow Jones RBP Directional Allocation fund

By Toni Weeks

San Diego, March 27 - Transparent Value Trust is planning to launch its new Transparent Value Dow Jones RBP Directional Allocation Index Fund on June 11, according to an N-1A filing with the Securities and Exchange Commission.

The fund plans to launch with class A, class C, class F-1 and class I shares. Ticker symbols have not yet been set.

The fund will seek to provide investment results that, before fees and expenses, correspond to the total return performance of the Dow Jones RBP Directional Allocation index. It will invest in securities representing the holdings of the index and, to the extent that the index is allocated to cash, in cash or cash equivalents. It may also invest up to 20% of its net assets in common stocks and real estate investment trusts that are not included in the index but may help the fund track the index, as well as in futures, options and swap contracts or money market instruments, among others.

The index consists of common stocks of companies and units of beneficial ownership in REITs included in the Dow Jones U.S. Large-Cap Total Stock Market index that Dow Jones Indexes has selected by applying Required Business Performance Probability scores.

Scott Hammond will be primarily responsible for the day-to-day management of the fund. Julian Koski will be responsible for developing portfolio strategy and communicating that strategy to the marketplace.

Shareholder fees will consist of a 5.75% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

Management fees will be 0.95% for all share classes. The adviser has agreed to limit net annual fund operating expenses to 1.5% for class A, 2.1% for class C, 1.35% for class F-1 and 1.1% for class I shares.

New York-based Guggenheim Investment Management, LLC will service as investment adviser to the fund. Transparent Value Advisors, LLC will be the subadviser.

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