Redwood Investment Management Plans Liquidation for LeaderShares ETFs
Redwood Investment Management Liquidation Announcement
Redwood Investment Management, LLC has made a significant announcement regarding the LeaderShares Activist Leaders ETF (ACTV) and the LeaderShares Equity Skew ETF (SQEW). This decision comes from the Board of Trustees of Two Roads Shared Trust, which has approved the initiation of a Plan of Liquidation for these two Funds.
Timeline for Liquidation
The liquidation process for both Funds is set to take place around a specific date. Trading for shares of both Funds on NYSE Arca will cease shortly before the complete dissolution. The exact day when all trading activities will stop is firmly set, providing shareholders a timeframe to manage their assets accordingly.
For those holding shares, it is important to note that they can sell their holdings on the secondary market until the end of the trading day on the predetermined closing date. Post closure, shareholders may face limitations when attempting to sell shares, as trading flexibility significantly reduces.
Shareholder Information
On the liquidation date, the Funds will execute their plan by liquidating all assets and distributing cash redemption amounts to shareholders recorded at that time. Each investor will receive a payment that reflects their respective share of the net assets of the Funds, minus any necessary withholdings.
The Funds will continue to declare and distribute realized capital gains and all net investment income prior to the final liquidation. As a reassurance to their investors, there will be no transaction fees charged to shareholders remaining as of the liquidation date, which is a positive note in this otherwise concerning process.
Automatic Redemption for Non-Trading Shares
A crucial aspect of this transition is the policy regarding shares not sold in the secondary market before the closing date. All shareholders in this category will see their shares automatically redeemed as of the liquidation date, ensuring no one is left holding unsold assets without recourse.
Resources and Considerations
For further guidance, shareholders are encouraged to consult the respective Prospectus Supplement for detailed information regarding the liquidation process. This documentation is a pivotal resource, offering insights into the distributions, tax implications, and other essential considerations that come with the liquidation of the Funds.
It is advisable for all investors to thoughtfully review their options and whether to consult with a tax advisor before liquidating their shares. The investment landscape may present risks that should be handled prudently.
About Redwood Investment Management
Redwood Investment Management stands out in the financial landscape for offering innovative investment strategies traditionally accessible only to large institutions and ultra-high net worth individuals. The company's approach is centered around the belief that prioritizing risk management will naturally lead to investment success.
With offerings such as RiskFirst solutions, Redwood is revolutionizing access to diverse investment options, making it feasible for individual investors to access opportunities like private debt investments secured by real estate through a streamlined, single ticker symbol.
In collaboration with financial advisors, Redwood offers a variety of investment solutions, including mutual funds and ETFs. Their focus remains on empowering advisors to help individual investors achieve desirable outcomes through cleverly engineered risk-budgeted model portfolios.
Through their commitment to change the investment landscape, Redwood Investment Management reaffirms its role as a reliable partner for advisors striving to elevate their clients' investment journeys.
Frequently Asked Questions
What is the reason behind the liquidation of the Funds?
The Board of Trustees of Two Roads Shared Trust decided to liquidate the LeaderShares ETFs as part of a strategic assessment of the Funds.
When will the liquidation take place?
The liquidation is set to occur around the closing date when trading ceases.
What happens to shareholders post-liquidation?
Shareholders will receive a cash redemption amount reflecting their stake in the Funds' net assets, minus necessary withholdings.
Will there be any fees associated with the shares held until liquidation?
No transaction fees will be charged to shareholders who remain invested until the liquidation date.
How can shareholders stay informed about the process?
Shareholders are encouraged to refer to the Prospectus Supplement for detailed insights and additional resources as they navigate this process.
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