Pacer Advisors, Inc. to Close and Liquidate the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF (TRPL)
- None.
- The closure and liquidation of the ETF may result in financial losses for investors.
Insights
The closure and liquidation of the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF represent a significant decision by the Board of Trustees of Pacer Funds Trust. This event often indicates a reassessment of the fund's viability, performance, or strategic fit within the broader portfolio of offerings managed by Pacer Advisors, Inc. From a financial analysis standpoint, the key factors to consider include the fund's assets under management (AUM), historical performance, expense ratios and how these compare to industry benchmarks.
Investors should assess the liquidation's impact on their portfolios, especially in terms of capital gains distributions and the timing of such events. The fund's performance against the S&P 500 or similar indices would provide context for understanding the rationale behind the closure. Additionally, this action could influence investor sentiment towards Pacer Advisors' other fund offerings, potentially affecting their market performance.
The ETF market is highly competitive, with numerous products vying for investor attention. The decision to close the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF could be a reflection of the fund's inability to attract sufficient investment capital or to carve out a niche in a crowded marketplace. A market research perspective would examine industry trends, such as the increasing preference for passive index-tracking funds over active or thematic ETFs.
Moreover, the influence of market conditions on dividend-focused investment strategies should be considered, as shifts in interest rates and economic outlook can affect the attractiveness of such funds. The liquidation could signal a broader shift in investor preferences or a strategic pivot by Pacer Advisors to focus on more lucrative or growing market segments.
Strategically, the liquidation of an ETF like the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF could be indicative of a shift in investment strategy by the fund's advisor. An investment strategist would examine the implications for asset allocation and diversification for investors who hold this ETF. The timing of the liquidation could be crucial, as it may affect investors' tax planning and year-end portfolio rebalancing.
It's also important to consider the broader economic implications, such as the potential impact on the sectors and companies represented within the fund's holdings. The liquidation process itself should be scrutinized for efficiency and fairness to shareholders, ensuring that the exit from the market is managed in a way that minimizes disruption and potential financial loss.
Effective on or about January 25, 2024, the Fund will begin liquidating its portfolio assets. This will cause the Fund to increase its cash holdings and deviate from the investment objective and strategies stated in the Fund’s prospectus.
The Fund will no longer accept orders for new creation units after the close of business on the business day prior to February 1, 2024 (the “Liquidation Date”), and trading in shares of the 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 the Fund’s shares during that time period. Customary brokerage charges may apply to such transactions.
On or about the Liquidation Date, the 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, the Fund’s net asset value will reflect the costs of closing the Fund, if any. Once the distributions are complete, the 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.
About Pacer:
Pacer ETFs is a strategy-driven exchange-traded fund provider with 47 ETFs and over
Carefully consider the Fund’s investment objective, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling (877) 337-0500, or by visiting www.paceretfs.com. 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 this fund are detailed in the prospectus and could include factors such as concentration risk, derivatives risk, dividends risk, equity market risk, ETF risks, futures contract risk, government obligations risk, index provider risk, large-capitalization investing risk, limited operating history risk, non- diversification risk, other investment companies risk, passive investment risk, tracking error risk, trading halt risk, and/or special risks of exchange traded funds.
Metaurus Advisors LLC serves as investment sub-advisor to the Fund.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.
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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 ETFs
FAQ
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