Timothy Plan Market Neutral ETF Liquidation Announcement
Timothy Plan has made a significant announcement regarding the future of its Market Neutral ETF (TPMN). The decision to liquidate this fund is part of the organization's standard review process conducted by the Adviser and Board of Trustees. This is a strategic move aimed at aligning their offerings with current market conditions and internal goals.
Details Regarding the Liquidation Timeline
The liquidation process will officially start once the markets close on July 22, 2025. After this date, the Fund will not accept any further purchase orders for Creation Units. Shareholders have the opportunity to sell their holdings on the NYSE ARCA Exchange before trading concludes on July 23, 2025. Typical brokerage fees may apply during these transactions, which marks an essential transition phase for current investors.
Final Trading and Liquidation Procedures
Excitingly, the Fund will stop trading at the end of the trading day on July 23, 2025, with an anticipated complete liquidation by July 29, 2025. Investors holding shares of the Fund on the liquidation date will receive cash distributions reflecting the net asset value of their shares. This ensures that investors are compensated fairly for their investments.
Adviser Responsibilities and Fee Structures
Timothy Partners, Ltd. (TPL), the adviser of the Fund, will be responsible for covering all costs associated with the liquidation process, ensuring that shareholders can achieve a smooth transition. However, it’s important to note that typical brokerage fees will still apply, which investors should consider when planning their next steps.
Tax Implications for Shareholders
For tax considerations, it is significant that shareholders will recognize a capital gain or loss depending on the amount they receive for their shares in relation to their adjusted basis. This handling of taxable events is crucial for investors as they navigate the impact of the Fund's liquidation on their overall financial situation.
About Timothy Partners
Timothy Partners, Ltd., established in December 1993 and based in Maitland, FL, is registered with the Securities and Exchange Commission as an investment adviser managing over $2.621 billion in client assets as of May 30, 2025. The partnership adheres strictly to investment objectives, policies, and restrictions outlined for its funds, facilitating investment decisions that reflect a commitment to values such as Biblically Responsible Investing.
Pioneering Biblically Responsible Investments
Timothy Plan represents a pioneering approach to Biblically Responsible Investing, applying proprietary filters to exclude companies that oppose Judeo-Christian principles. This unique investment philosophy is rare in today's financial landscape and offers a distinct choice for investors seeking alignment with their moral values.
Careful Considerations for Investors
Before making any investment decisions, it is essential for investors to review the Fund's investment objectives, associated risks, and any fees involved. All critical information is available in the Fund's prospectus. Timothy Plan encourages potential investors to obtain and scrutinize this information thoroughly to make informed decisions.
The Importance of Investment Awareness
Investors should recognize that the Funds may carry greater risks due to the exclusion of certain securities. When a fund constrains its investment scope, it can lead to varying degrees of market exposure and volatility. As such, it’s important for investors to be aware of potential risks associated with specific investment strategies and markets.
Frequently Asked Questions
What is the main reason for the liquidation of TPMN?
The liquidation is part of Timothy Plan's regular evaluation process by the Adviser and Board of Trustees, aiming to ensure alignment with current strategies.
When will the liquidation take place?
The liquidation process will officially begin on July 22, 2025, with total cessation of trading by July 23, 2025.
Will investors receive any compensation?
Yes, investors holding shares will receive cash distributions based on the net asset value of their shares on the liquidation date.
What costs will Timothy Partners cover?
Timothy Partners will bear fees and expenses associated with the liquidation process, excluding typical brokerage fees for transactions.
How should investors prepare for tax implications?
Shareholders will need to assess capital gains or losses based on the liquidation amounts compared to their initial investment bases.
