Closure Announcement for Pacer BioThreat and China A50 ETFs
Pacer Advisors Announces Liquidation of Two ETFs
Pacer Advisors, Inc., a well-respected investment management firm, has recently disclosed an important decision from the Board of Trustees of the Pacer Funds Trust. They have determined that the Pacer BioThreat Strategy ETF (VIRS) and the Pacer CSOP FTSE China A50 ETF (AFTY) will be closed and liquidated. This significant decision comes after thorough analysis and consideration of the funds' investment strategies and market conditions.
Liquidation Process Overview
The process of liquidating the two funds is set to commence on or around a specified date in late September. During this time, the Funds are expected to liquidate their portfolio assets, resulting in an increase in cash holdings. This shift means the funds will diverge from their original investment objectives and strategies outlined in their prospectuses. It's essential for investors to note that no new orders for creation units will be accepted following the trading day prior to the set Liquidation Date.
Shareholder Considerations
As the Liquidation Date approaches, shareholders of VIRS and AFTY should be aware that trading in shares will cease prior to market open on that date. Furthermore, investors may face limitations in selling their shares, only being able to transact with select broker-dealers. Notably, there is no guarantee of liquidity for these shares during this period, which may lead to customary brokerage fees for those transactions.
Distribution and Tax Implications
Once the liquidation process is complete, the funds will distribute cash pro rata among remaining shareholders. It’s worth highlighting that these distributions represent taxable events, which require investors to consult tax advisors for guidance on potential income tax consequences. Additionally, shareholders will receive their portion of any accrued capital gains and dividends, affecting the final net asset value that incorporates the costs associated with closing the funds.
The Role of Pacer Advisors
Pacer Advisors, Inc. plays a critical role in managing these funds. Their investment strategies are tailored to maximize shareholder value while addressing market dynamics. The firm has established a reputation for making informed decisions that prioritize the financial interests of its investors. In this instance, the choice to liquidate the funds reflects a careful assessment of their operational viability and performance trends.
Investment Risks
As with any investment strategy, shareholders should remain cognizant of the inherent risks. Pacer Advisors emphasizes that investments in the ETFs can entail a risk of principal loss. These funds, traded through brokerage accounts, are subject to market fluctuations, which can diminish investment returns. The prospectus details various risks associated with investing in these particular funds, including those related to emerging markets like China, where unique challenges such as currency risks and market conditions can significantly impact performance.
Future Outlook
With the decision to liquidate the BioThreat Strategy ETF and the CSOP FTSE China A50 ETF, Pacer Advisors is strategically repositioning its offerings. This action underscores the importance of regularly evaluating fund performance against market conditions and investor expectations. Looking ahead, investors are encouraged to explore Pacer Advisors’ other funds that may align better with their investment goals.
Frequently Asked Questions
Why are the Pacer BioThreat and China A50 ETFs being liquidated?
The decision to liquidate these ETFs comes after careful evaluation of their performance and strategic alignment within Pacer Advisors' portfolio management objectives.
What will happen to my shares of VIRS and AFTY?
Shareholders will have the opportunity to liquidate their investments prior to the Liquidation Date, but trading in these shares will be halted on that date.
Will I receive cash from the liquidation?
Yes, upon completion of the liquidation, cash will be distributed pro rata to all shareholders, with applicable tax implications.
Who should I contact for more information?
For any inquiries or concerns, shareholders are encouraged to contact Pacer Advisors directly at 1-800-617-0004.
What are the risks involved in investing in these ETFs?
Investing in ETFs carries risks such as potential loss of principal, market fluctuations, and other specific risks mentioned in the funds' prospectuses.
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