Legal & General Announces Closure of ETFs
Legal & General (LON:LGEN) UCITS ETF Plc has made a significant decision regarding three of its exchange-traded funds (ETFs). The company recently revealed plans for the closure of these funds, with the final trading and dealing dates set for February 18 and February 19 in the year 2025. This move is a result of careful consideration by the company's directors, prioritizing the long-term welfare of its shareholders.
Affected Exchange-Traded Funds
The ETFs that are set to be closed include the L&G Optical Technology & Photonics ESG Exclusions UCITS ETF, the L&G Japan ESG Exclusions Paris Aligned UCITS ETF, and the L&G Global Thematic ESG Exclusions UCITS ETF. Each of these funds carries a unique ISIN for easier identification by investors. The decision to close these funds comes as part of a strategy to align offerings with market needs and investors' interests.
Implications for Investors
Investors holding shares in these sub-funds will need to be mindful of the compulsory redemption of all shares, which will occur on the specified closing dates. This means that after February 18, 2025, trading of these ETFs will not be possible on any exchanges. Additionally, all subscription and redemption requests must be submitted by 4:00 pm on that date. Following this deadline, the funds will cease all operations related to new subscriptions or redemptions.
De-listing from Regulatory Authorities
As part of the winding-up process, the affected sub-funds are expected to be de-listed from the Official List of the Financial Conduct Authority on March 4, 2025. Shareholders can anticipate the distribution of proceeds from the compulsory redemption around March 5, 2025. This structured timeline aims to ensure a smooth transition for investors.
Liquidation of Underlying Portfolios
With the impending closure, there will be a phase of liquidating the funds' underlying portfolios. This liquidation is essential to facilitate the redemption process but may hinder the ability of these funds to achieve their investment objectives. Consequently, investors may experience a heightened risk of tracking error during this period.
Communication and Transparency
The notification about the closure of these sub-funds has been officially submitted to the National Storage Mechanism, ensuring that this important information is transparent and accessible. This information will be available for review at the Financial Conduct Authority’s website and on the official Legal & General IM ETF site.
In an effort to keep stakeholders informed, Legal & General UCITS ETF Plc has released a statement regarding this decision. Clear communication is imperative as they navigate through this transition for affected investors.
Frequently Asked Questions
What ETFs are being closed by Legal & General?
Legal & General is closing the L&G Optical Technology & Photonics ESG Exclusions UCITS ETF, the L&G Japan ESG Exclusions Paris Aligned UCITS ETF, and the L&G Global Thematic ESG Exclusions UCITS ETF.
When will the final trading dates for these ETFs be?
The final trading date for the affected ETFs is set for February 18, 2025.
What happens to the shares after the closure?
All shares will be compulsorily redeemed, and investors cannot trade these funds after the final trading date.
How will I receive the proceeds from my shares?
The proceeds from the redemption of shares will be distributed to registered shareholders around March 5, 2025.
Where can I find more information about this closure?
Further information is available on the Financial Conduct Authority's website and the Legal & General IM ETF's official site.
