NEW YORK--(BUSINESS WIRE)--Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded funds ("Funds"), today announced it will close 12 Funds representing 4% of assets under management.
“EGA provides investors with tools that address developing markets allocation needs," said Robert Holderith, founder of EGA. "As part of this ongoing commitment and our regular product line review, we identified an opportunity to streamline our existing offering. These changes are consistent with our dedication to delivering tools that fulfill unmet investor needs."
Demonstrating this commitment, EGA recently launched two additions to their dividend suite, the EGShares Emerging Markets Dividend Growth ETF (Ticker: EMDG), the first emerging markets dividend growth exchange-traded fund, and the EGShares EM Dividend High Income ETF (Ticker: EMHD). EGA's market share has continued to grow this year as EGShares Funds have gathered over $408 million in net new assets while emerging market equity exchange-traded fund assets in general have suffered more than $12.5 billion in net outflows as of September 4, 2013.1
Trading on the NYSE Arca for the shares of the Funds listed below will be suspended prior to the open of business on Monday, October 7, 2013. Shareholders may sell their holdings on or before Friday, October 4, 2013 and may incur customary brokerage charges. Shareholders who do not sell their holdings on or before October 4, 2013 will receive cash equal to the amount of the net asset value of their shares. Each Fund’s net asset value will reflect the costs of closing the Fund as calculated on the liquidation date. In addition, each Fund may also pay a final clean-up distribution of any accrued capital gains and income to shareholders of record as of the close of trading on NYSE Arca on October 4, 2013. The Board of Trustees of the EGA Emerging Global Shares Trust has authorized these Fund liquidations. The affected Funds are:
|Fund Name||Ticker Symbol|
|EGShares GEMS Composite||AGEM|
|EGShares Financials GEMS||FGEM|
|EGShares Consumer Goods GEMS||GGEM|
|EGShares Health Care GEMS||HGEM|
|EGShares Industrials GEMS||IGEM|
|EGShares Basic Materials GEMS||LGEM|
|EGShares Energy GEMS||OGEM|
|EGShares Technology GEMS||QGEM|
|EGShares Telecom GEMS||TGEM|
|EGShares Utilities GEMS||UGEM|
|EGShares Consumer Services GEMS||VGEM|
|EGShares Emerging Markets Metals & Mining||EMT|
Please see the Supplemental Prospectus for each of the Funds listed above for important disclosures regarding the closures. For more information about the liquidation and termination process, please contact EGA at 1-888-800-4347.
1 Source: EGA data as of 9/4/13
About Emerging Global Advisors (EGA)
Emerging Global Advisors (EGA), the asset manager to the EGShares ETF offering, provides investors and institutions with the advanced beta tools they need to implement similar investment strategies in developing markets as they do in developed markets. For more information, please visit egshares.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before investing.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility, and lower trading volume. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar. This fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small cap and mid cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
Shares are not individually redeemed and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
Robert Holderith is a registered representative of ALPS Distributors, Inc.
EGShares Funds are distributed by ALPS Distributors, Inc.
© Copyright 2013 Emerging Global Advisors, LLC - All Rights Reserved
EGS001435 Expires 9/5/2014