Pacer Advisors, Inc. to Close and Liquidate the Pacer BioThreat Strategy ETF (VIRS) and the Pacer CSOP FTSE China A50 ETF (AFTY)
Pacer Advisors, Inc. has announced the closure and liquidation of two ETFs: the Pacer BioThreat Strategy ETF (VIRS) and the Pacer CSOP FTSE China A50 ETF (AFTY). Key points include:
1. Liquidation process begins on September 27, 2024
2. Funds will stop accepting new creation unit orders after close of business on October 10, 2024
3. Trading halts prior to market open on October 11, 2024 (Liquidation Date)
4. Cash distributions to remaining shareholders on or about the Liquidation Date
5. Distributions are taxable events
6. Fund termination follows completion of distributions
Shareholders are advised to consider tax implications and consult their advisors. The liquidation reflects careful consideration by the Board of Trustees of Pacer Funds Trust.
Pacer Advisors, Inc. ha annunciato la chiusura e la liquidazione di due ETF: il Pacer BioThreat Strategy ETF (VIRS) e il Pacer CSOP FTSE China A50 ETF (AFTY). I punti chiave includono:
1. Il processo di liquidazione inizia il 27 settembre 2024
2. I fondi smetteranno di accettare nuovi ordini di unità di creazione dopo la chiusura degli affari del 10 ottobre 2024
3. Le contrattazioni si interrompono prima dell'apertura del mercato l'11 ottobre 2024 (Data di Liquidazione)
4. Le distribuzioni monetarie agli azionisti rimanenti avverranno il giorno della liquidazione o circa
5. Le distribuzioni sono eventi tassabili
6. La cessazione del fondo avviene al termine delle distribuzioni
Si consiglia agli azionisti di considerare le implicazioni fiscali e di consultare i propri consulenti. La liquidazione riflette un'attenta considerazione da parte del Consiglio di Amministrazione di Pacer Funds Trust.
Pacer Advisors, Inc. ha anunciado el cierre y la liquidación de dos ETFs: el Pacer BioThreat Strategy ETF (VIRS) y el Pacer CSOP FTSE China A50 ETF (AFTY). Los puntos clave incluyen:
1. El proceso de liquidación comienza el 27 de septiembre de 2024
2. Los fondos dejarán de aceptar nuevos pedidos de unidades de creación tras el cierre del negocio el 10 de octubre de 2024
3. La negociación se detiene antes de la apertura del mercado el 11 de octubre de 2024 (Fecha de Liquidación)
4. Distribuciones en efectivo a los accionistas restantes en o alrededor de la Fecha de Liquidación
5. Las distribuciones son eventos tributables
6. La terminación del fondo sigue la finalización de las distribuciones
Se aconseja a los accionistas que consideren las implicaciones fiscales y consulten a sus asesores. La liquidación refleja una cuidadosa consideración por parte de la Junta de Síndicos de Pacer Funds Trust.
Pacer Advisors, Inc.는 두 개의 ETF, 즉 Pacer BioThreat Strategy ETF (VIRS)와 Pacer CSOP FTSE China A50 ETF (AFTY)의 종료 및 청산을 발표했습니다. 주요 사항은 다음과 같습니다:
1. 청산 과정이 2024년 9월 27일에 시작됩니다.
2. 자금은 2024년 10월 10일 영업 종료 후 새로운 창작 단위 주문을 더 이상 받지 않습니다.
3. 거래는 2024년 10월 11일 시장 개장 전에 중단됩니다 (청산일)
4. 나머지 주주에게 현금 배당금이 청산일 또는 그 전후에 지급됩니다.
5. 배당금은 세금 부과 대상입니다.
6. 배당금 지급이 완료된 후 펀드 종료가 이루어집니다.
주주들은 세금 영향을 고려하고 자신의 고문과 상담할 것을 권장합니다. 청산은 Pacer Funds Trust의 이사회가 신중하게 고려한 결과입니다.
Pacer Advisors, Inc. a annoncé la fermeture et la liquidation de deux ETF : le Pacer BioThreat Strategy ETF (VIRS) et le Pacer CSOP FTSE China A50 ETF (AFTY). Les points clés incluent :
1. Le processus de liquidation commence le 27 septembre 2024
2. Les fonds cesseront d'accepter de nouvelles commandes d'unités de création après la fermeture des activités le 10 octobre 2024
3. Les transactions seront suspendues avant l'ouverture des marchés le 11 octobre 2024 (Date de Liquidation)
4. Les distributions en espèces aux actionnaires restants auront lieu à la date de liquidation ou aux alentours
5. Les distributions sont des événements imposables
6. La cessation du fonds suit l'achèvement des distributions
Il est conseillé aux actionnaires de prendre en compte les implications fiscales et de consulter leurs conseillers. La liquidation reflète une réflexion attentive du Conseil d'administration de Pacer Funds Trust.
Pacer Advisors, Inc. hat die Schließung und Liquidation von zwei ETFs angekündigt: dem Pacer BioThreat Strategy ETF (VIRS) und dem Pacer CSOP FTSE China A50 ETF (AFTY). Die wichtigsten Punkte sind:
1. Der Liquidationsprozess beginnt am 27. September 2024
2. Die Fonds werden nach Geschäftsschluss am 10. Oktober 2024 keine neuen Erstellungseinheiten mehr akzeptieren
3. Der Handel wird vor der Markteröffnung am 11. Oktober 2024 (Liquidationstag) gestoppt
4. Bargeldauszahlungen an die verbleibenden Aktionäre erfolgen am Liquidationstag oder etwa zu diesem Zeitpunkt
5. Ausschüttungen sind steuerpflichtige Ereignisse
6. Die Auflösung des Fonds erfolgt nach Abschluss der Ausschüttungen
Aktionären wird geraten, die steuerlichen Auswirkungen zu berücksichtigen und ihre Berater zu konsultieren. Die Liquidation spiegelt eine sorgfältige Überlegung des Vorstands von Pacer Funds Trust wider.
- None.
- Closure and liquidation of two ETFs, including AFTY
- Potential tax implications for shareholders due to liquidation
- ability to sell shares prior to liquidation date
- Deviation from stated investment objectives during liquidation process
Insights
The closure and liquidation of the Pacer BioThreat Strategy ETF (VIRS) and Pacer CSOP FTSE China A50 ETF (AFTY) is a significant development for investors in these funds. This decision likely stems from factors such as underperformance, low asset gathering, or changing market conditions.
Key points for investors:
- Liquidation process begins September 27, 2024
- Last day to create new units: October 10, 2024
- Liquidation date: October 11, 2024
- Cash distributions to shareholders after liquidation
- Potential tax implications for investors
This event highlights the importance of regularly reviewing ETF holdings and being prepared for potential fund closures. It also underscores the challenges in specialized ETF markets, particularly in biotech and China-focused funds. Investors should be aware of the trading window and potential tax consequences when ETFs are liquidated.
The closure of these two ETFs reflects broader trends in the ETF industry. Niche or specialized ETFs often struggle to gather assets and maintain viability, especially in volatile or underperforming sectors.
For VIRS, the biotech sector has faced challenges recently, potentially impacting investor interest. AFTY's closure may be related to ongoing concerns about investing in Chinese markets and regulatory issues.
Investors should note:
- Increased cash holdings may lead to tracking error before liquidation
- liquidity as the liquidation date approaches
- Potential for shares to trade at a discount to NAV
This event serves as a reminder of the importance of diversification and the risks associated with niche ETF strategies. It also highlights the need for ongoing due diligence in ETF selection and portfolio management.
Effective on or about September 27, 2024, each Fund will begin liquidating its portfolio assets. This will cause each Fund to increase its cash holdings and deviate from the investment objectives and strategies stated in each Fund’s prospectus. The Funds will no longer accept orders for new creation units after the close of business on the business day prior to October 11, 2024 (the “Liquidation Date”), and trading in shares of each Fund will be halted prior to market open on the Liquidation Date. Prior to the Liquidation Date, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for each Funds’ shares during that time period. Customary brokerage charges may apply to such transactions.
On or about the Liquidation Date, each Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders. These distributions are taxable events. Shareholders should contact their tax advisor to discuss the income tax consequences of the liquidation. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing each Fund, if any. Once the distributions are complete, each Fund will terminate. Proceeds of the liquidation will be sent to shareholders promptly after the Liquidation Date.
For additional information, please call 1-800-617-0004.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A copy may be obtained by visiting https://www.paceretfs.com or calling 1-877-337-0500. Please read the prospectus carefully before investing.
An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with these funds are detailed in the prospectus and could include factors such as risk of investing in
Pacer Advisors, Inc. is the fund advisor to AFTY. CSOP Asset Management LTD is the fund sub-adviser to AFTY. CSOP Asset Management LTD is registered as an investment advisor with the SEC.
The LifeSci BioThreat Strategy Index is a trademark of LifeSci Index Partners, LLC (“LSIP”) and has been licensed for use by Pacer Advisors, Inc. The Pacer BioThreat Strategy ETF (CBOE: VIRS) is not sponsored, endorsed, sold or promoted by LifeSci Index Partners, LLC and LSIP makes no representation or warranty regarding the advisability of investing in the Pacer BioThreat ETF.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926983832/en/
Media Contact
Trevor Davis Gregory FCA for Pacer ETFs
215-475-5931
trevor@gregoryfca.com
Company Contact
Ashlee Thomson for Pacer ETFs
610-981-6214
ashlee.thomson@pacerfinancial.com
Source: Pacer Advisors, Inc.
FAQ
When will the Pacer CSOP FTSE China A50 ETF (AFTY) begin liquidating its assets?
What is the last day to place orders for new creation units of AFTY?
When will trading be halted for the Pacer CSOP FTSE China A50 ETF (AFTY)?
How will shareholders of AFTY receive their liquidation proceeds?
