Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Asset Management Commodity Strategy Allocation Fund Achieves One-Year Milestone

NEW YORK, July 12, 2011 – Jefferies today announced the one-year anniversary of the launch of the Jefferies Asset Management Commodity Strategy Allocation Fund (the “Fund”), an open-ended mutual fund that seeks to provide comprehensive access to global commodities and commodity equity markets, collateralized by US Treasury Inflation Protected Bonds (TIPS). The Fund is Jefferies’ first mutual fund product and has assets of $127 million as of June 30, 2011.

Since inception on June 29, 2010, on a total-return basis, the Fund’s I shares have returned 40.31% per-annum, after-expenses, outperforming the Dow Jones-UBS Commodity Index Total ReturnSM by 12.82% during this time period. Notably, the Fund surpassed the returns of the Dow Jones-UBS Spot Index, which measures performance of a comparably constituted index of commodities for immediate delivery, by approximately 3.6% per annum during the same period.

“We are extremely proud that the Fund’s returns have exceeded the major commodity indices with lower volatility,” commented Adam De Chiara, Co-President of Jefferies Asset Management, LLC (“JAM”). “The Fund is positioned to provide investors with comprehensive exposure to global commodity markets, and utilizes a unique combination of both futures-based and equity-based commodity investments to achieve its objectives. In addition to exchange traded commodities, the Fund provides investors with exposure to major commodity sectors including steel, coal iron ore, chemicals and fertilizers which cannot be easily accessed through a futures-only approach."

“The global commodity markets will continue to be a key area of investment as worldwide demand for commodities and commodity-related products continues to increase with the economic growth of China, India and the emerging markets,” added Satch Chada, Managing Director, and head of the mutual funds business for JAM.

The Jefferies Asset Management Commodity Strategy Allocation Fund is a part of the ALPS Fund Family, advised by ALPS Advisors, Inc. JAM acts as sub advisor to the Fund. The Fund’s investment objective seeks to maximize real returns, consistent with prudent investment management, by optimizing the Fund’s allocation among investments in the commodity futures markets, commodity equities, and TIPS. This combination seeks to provide comprehensive access to the global commodity markets and offers three layers of inflation-hedging potential from commodities, commodity related equities and TIPS.
 

Fund Performance Expenses
  2010
  2011 YTD 1 Since Fund Inception Date, June 29, 2010,
Through
June 30, 2011
June 30, 2010-
June 30, 2011
Q4 Q3 Q2 Q1 Net Expense Ratio 2 Total
Expense Ratio
Class A (NAV) 6.38% 39.73% 39.86% 15.94% 13.40% - - 1.45% 1.60%
Class A (MOP) 0.53% 32.09% 32.19% 9.56% 7.16% - -    
Class I 6.52% 40.18% 40.31% 15.98% 13.57% - - 1.15% 1.30%
TR/J CRB TR 1.62% 31.97% 30.92% 16.06% 11.01% 5.39% -3.52%    
DJUBS TR -2.58% 27.36% 25.91% 15.79% 11.61% -4.81% -5.03%    

 

Benchmarks:
Thomson Reuters/Jefferies CRB Index (Total Return) and Dow Jones-UBS Commodity Index (Total Return)

1 Fund performance for 2011 is through June 30, 2011.
2 Net Expense Ratio reflects the Jefferies Asset Management’s decision to contractually limit expenses through August 31, 2011. Please see the prospectus for additional information.

Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The Fund imposes a 2.00% redemption fee on shares held for less than 30 days. Performance shown does not include the redemption fee, which if reflected would reduce the performance quoted. Current performance may be higher or lower than the performance quoted. Call 866.759.5679 for current month end performance. Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%.

Jefferies Asset Management, LLC, a wholly owned subsidiary of Jefferies Group, Inc., provides institutional and individual investors with a diversified suite of high quality asset management products. JAM's executive team, comprised of Co-Presidents Adam De Chiara and Bradford Klein, has extensive experience in building, managing, and innovating investments in commodities. Among their notable accomplishments, JAM's executive team was responsible for the design of the now Dow Jones - UBS Commodity Index (formerly the Dow Jones – AIG Commodity Index) and the current Thomson Reuters / Jefferies CRB Index, two of the most renowned commodity indices globally. As of May 31, 2011, assets under management at JAM, its affiliates, and third parties in which Jefferies has an interest totaled more than $3.3 billion.
Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for nearly 50 years.
Investors should consider investment objectives, risks, charges and expenses carefully before investing, including “Additional Risks” as described in the prospectus. To obtain a prospectus, which contains this and other information, call 1.866.759.5679 or visit www.alpsfunds.com or www.jamfunds.com. Read the prospectus carefully before investing.

The Jefferies Asset Management Commodity Strategy Allocation Fund is distributed by ALPS Distributors, Inc., 1290 Broadway, Ste. 1100, Denver, CO 80203. ALPS Advisors, Inc. is the investment adviser to the Fund and Jefferies Asset Management, LLC is the investment sub-adviser. ALPS is not affiliated with Jefferies Asset Management. Jefferies Asset Management, LLC serves as investment adviser to the Fund’s Cayman Islands subsidiary. The Fund’s investments may subject the Fund to significantly greater volatility than investments in traditional securities and involve substantial risks, including risk of a significant portion on their principal value.

Diversification does not protect against loss in a declining market.

The commodities markets and the prices of various commodities may fluctuate widely based on a variety of factors. Because the Fund’s performance is linked to the performance of highly volatile commodities, investors should consider purchasing shares of the Fund only as part of an overall diversified portfolio and should be willing to assume the risks of potentially significant fluctuations in the value of the Fund. The Fund invests in commodity futures related investments, which are derivative instruments that allow access to a diversified portfolio of commodities without committing substantial amounts of capital. Additional risks of Commodity Futures Related Investments include liquidity risk and counterparty credit risk. Counterparty Risk is the risk that a party to a transaction will fail to fulfill its obligations. The term is often applied specifically to swap agreements in which no clearinghouse guarantees the performance of the contract. Liquidity Risk is the risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss.

Another principal risk of investing in the Fund is equity risk, which is the risk that the value of the securities held by the Fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate or factors relating to specific companies in which the Fund invests. The Fund’s investments in non-U.S. issuers may be even more volatile and may present more risks than investments in U.S. issuers. Equity investments in commodity-related companies may not move in the same direction and to the same extent as the underlying commodities.

Thomson Reuters / Jefferies CRB Index and the Dow Jones-UBS Commodity Index are unmanaged indexes used as a measurement of change in commodity market conditions based on the performance of a basket of different commodities. An investor cannot invest directly in an index.

Not FDIC Insured • No Bank Guarantee • May Lose Value

For further information, please contact:

Tom Tarrant, Jefferies, 203 708 5989, ttarrant@jefferies.com
Desiree Maghoo, Jefferies, 44 20 7029 8085, dmaghoo@jefferies.com