Democracy Investments Launches First Product
Democracy Investments has launched its inaugural product, the Democracy International Fund ETF (DMCY), aimed at promoting democracy through capital flows. DMCY seeks to replicate the performance of the Democracy Investments International Index (DMCYTR), which emphasizes investments in democratic nations while minimizing those in authoritarian regimes. The fund leverages The Economist's Democracy Index. CEO Julie Cane emphasized the fund's goal to boost economic growth in democracies and raise awareness of the risks of investing in authoritarian states. Advisory services are provided by Democracy Investment Management, LLC.
- Launch of the Democracy International Fund ETF (DMCY) to promote investments in democratic countries.
- Utilizes The Economist's Democracy Index to weight securities based on democracy scores.
- Addresses global decline in democracy by encouraging market-driven reforms.
- Investment risks associated with international markets, including currency fluctuations and political instability.
- No guarantee of positive returns or outperforming other investment products.
SAN FRANCISCO, April 5, 2021 /PRNewswire/ -- Democracy Investments, a new company focused on promoting democracy by influencing capital flows, announced the launch of its first product, the Democracy International Fund ETF (DMCY).
"DMCY is designed to empower investors to invest in the future of democracies, instead of passively investing in authoritarian states with political risk, environmental challenges and human rights abuses," said Julie Cane, CEO of Democracy Investments. "Democracy is declining globally, but we hope the potential success of this ETF will reverse that trend and fuel a movement to lower the cost of capital for democratic countries and improve their economic growth."
DMCY seeks to track as closely as possible, before fees and expenses, total return performance of the Democracy Investments International Index (ticker: DMCYTR) (the "Index"). Democracy Investments has an exclusive global license of The Economist's Democracy Index, which is used as an overlay in the Index's proprietary model. Securities are weighted by their Democracy Score based on country of risk. The resulting democracy-weighted index over weights securities in democratic countries and under weights those in authoritarian states. The Economist's 2020 Democracy Index can be downloaded here.
"The power of the Index is it makes investments proportional to democracy scores and never drops investment in a nation to zero," added Chief Economist Richard Rikoski. "We hope this creates market-based incentives for democratic reforms."
Supporters of DMCY collectively hope to heighten awareness about the dangers of passive investment in authoritarian countries. You can join them by affirming democracy at home by investing in it abroad.
Advisory services offered by Democracy Investment Management, LLC.
Visit www.democracyinvestments.com for more information.
Risk Disclosure and Important Information
Carefully consider the fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's summary or full prospectus, which may be obtained at www.democracyinvestments.com. Please read the prospectus carefully before investing. A hard copy of the prospectus can be requested by calling 877-PRO-DMCY (877-776-3629) or emailing DemocracyETF@seic.com.
Investing involves risk, including the possible loss of principal. There is no guarantee or assurance that the methodology used to create the Index will result in the Fund achieving positive investment returns or outperforming other investment products.
The fund is subject to the risks associated with International investments, which may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic, or political instability in other nations; emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume; and investments in smaller companies typically exhibit higher volatility.
The funds are distributed by SEI Investments Distribution Co, which is not affiliated with Democracy Investment Management LLC.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
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SOURCE Democracy Investments
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