SS&C ALPS Advisors Announces Closing of Travel ETF Fund

Author: Owen Jenkins Updated: 09-10-2024 04:39 PM

SS&C ALPS Advisors to Liquidate Global Travel ETF

SS&C ALPS Advisors, a subsidiary of SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), has announced significant changes regarding its ALPS Global Travel Beneficiaries ETF, also known as the Fund. This decision, rooted in the pursuit of efficiency and investor satisfaction, comes as the firm plans to close the Fund to new investors and proceed with liquidation.

Fund Closure and Liquidation Plan

The Fund will stop accepting new investments shortly, with a definitive closure date rapidly approaching. This decision was reached by the Board of Trustees for the ALPS ETF Trust after consulting with ALPS Advisors. They carefully evaluated the Fund's performance and its potential for growth. Unfortunately, the Board found that the Fund had not garnered significant interest since its inception, leading to the conclusion that closing the Fund was the best course of action for shareholders and investors alike.

Key Dates for Shareholders

As per the announcement, the ALPS Global Travel Beneficiaries ETF will cease to accept new investors immediately. Existing shareholders will have the opportunity to sell their shares until the last trading day on a predetermined date. Notably, the Fund's active trading operations will officially halt shortly thereafter, emphasizing the urgency for investors to consider their options and plan accordingly.

Process of Liquidation

Upon finalizing the closure, the Fund will enter into a liquidation process. This strategy involves converting portfolios into liquid assets, leading to an increase in cash holdings overall. Throughout this timeframe, shareholders will be informed and will receive updates on progress and next steps. It's essential for existing shareholders to note that, while they may sell their shares up until the closure date, market conditions could affect their ability to do so seamlessly.

Shareholder Protection Measures

Upon liquidation, shareholders will receive cash distributions based on the net asset value of their holdings. This course of action ensures that no transaction fees will be incurred by shareholders during the distribution process. However, it must be emphasized that portions of this distribution may be subject to taxation as ordinary income or capital gains.

About SS&C Technologies and Its Offerings

SS&C Technologies, founded in 1986, stands as a dominant global player in providing services and software across various industries, notably financial services and healthcare. With a formidable footprint, the company caters to approximately 20,000 organizations ranging from large corporations to niche market firms, showcasing its versatility and expertise. The commitment to deliver top-tier service solidifies SS&C's reputation in the sector.

SS&C ALPS Advisors: A Commitment to Investment Success

As an integral part of the SS&C umbrella, SS&C ALPS Advisors has solidified its standing as a key player in the investment management landscape. Currently managing over $24.96 billion as of mid-2024, the firm is dedicated to providing innovative investment products aimed at advisors and institutions. Their approach emphasizes sustainable income, alternative strategies, and thematic investment opportunities, genuinely striving to elevate clients' investment journeys.

Frequently Asked Questions

What prompted SS&C ALPS Advisors to close the ETF?

The closure resulted from the Fund's inability to attract significant market interest and a strategic decision to serve the best interests of shareholders.

When is the last trading day for the Fund?

The finalized trading date for the ALPS Global Travel Beneficiaries ETF is scheduled for October 17, 2024.

Will shareholders incur fees during liquidation?

No, shareholders will not incur transaction fees associated with the cash distribution or the liquidation process.

What will happen to the assets in the Fund?

The Fund will liquidate its portfolio, converting assets into cash holdings to facilitate the distribution to shareholders.

How are cash distributions determined for shareholders?

Cash distributions will be based on the net asset value of the shares held by shareholders as of the liquidation date.

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