Key Takeaways
- • The Board of Trustees of the iMGP DBi Hedge Strategy ETF determined on July 23, 2024 to liquidate and close the Fund, following a recommendation from adviser iM Global Partner Fund Management, LLC.
- • Shares may be sold on the NYSE until market close on September 16, 2024, after which the Fund stops accepting creation orders from Authorized Participants and the shares are de-listed.
- • The Fund will liquidate on or about September 20, 2024, with shareholders still holding shares receiving a liquidating distribution equal to net asset value, scheduled to be paid the day after the Liquidation Date.
- • To fund the wind-down, the Fund will increase its cash position by selling portfolio assets and will depart from its stated prospectus investment objective and strategies, which may adversely affect performance.
Summary
The Board of Trustees of the iMGP DBi Hedge Strategy ETF (the "Fund") resolved on July 23, 2024 to liquidate and close the Fund, acting on the recommendation of iM Global Partner Fund Management, LLC, the Fund's adviser, according to a Business Wire announcement issued from Los Angeles.
Shareholders have until market close on September 16, 2024 to sell their shares on the NYSE, though broker-dealer transaction fees may apply. After that date, the shares will no longer trade on the NYSE and will be de-listed, and the Fund will stop accepting creation orders from Authorized Participants on the same day.
The Fund is expected to liquidate on or about September 20, 2024. Shareholders holding shares through the Liquidation Date will receive a cash liquidating distribution in their brokerage accounts equal to the net asset value of their shares, with proceeds currently scheduled to be sent the following day. Shareholders will generally recognize a capital gain or loss equal to the proceeds over their adjusted basis, and the announcement advised investors to consult their own tax and legal professionals. The final tax character of distributions, including any return-of-capital portion, will be reported with year-end tax documents.
To complete the wind-down, the Fund will raise cash by selling portfolio assets and will deviate from the investment objective and strategies in its prospectus, which the announcement acknowledges may adversely affect performance. The sponsor, iM Global Partner, described itself as managing approximately $45 billion in assets as of end-June 2024. The Fund's shares are distributed by ALPS Distributors, Inc.
Shareholders have until market close on September 16, 2024 to sell their shares on the NYSE, though broker-dealer transaction fees may apply. After that date, the shares will no longer trade on the NYSE and will be de-listed, and the Fund will stop accepting creation orders from Authorized Participants on the same day.
The Fund is expected to liquidate on or about September 20, 2024. Shareholders holding shares through the Liquidation Date will receive a cash liquidating distribution in their brokerage accounts equal to the net asset value of their shares, with proceeds currently scheduled to be sent the following day. Shareholders will generally recognize a capital gain or loss equal to the proceeds over their adjusted basis, and the announcement advised investors to consult their own tax and legal professionals. The final tax character of distributions, including any return-of-capital portion, will be reported with year-end tax documents.
To complete the wind-down, the Fund will raise cash by selling portfolio assets and will deviate from the investment objective and strategies in its prospectus, which the announcement acknowledges may adversely affect performance. The sponsor, iM Global Partner, described itself as managing approximately $45 billion in assets as of end-June 2024. The Fund's shares are distributed by ALPS Distributors, Inc.
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