Timothy Plan Streamlines ETFs with Strategic Merger Effort

Timothy Plan Streamlines ETFs with Strategic Merger Effort

In a significant move, the Timothy Plan has announced a merger reorganization involving its Large Mid/Cap Core Enhanced ETF (TPLE) into the Large Mid/Cap Core ETF (TPLC). This initiative, which reflects the Trust’s commitment to optimizing its fund offerings, has been shaped by the guidance of Timothy Partners, Ltd., the investment adviser for the Trust.

The Merger Details

According to the approved plan, the merger will integrate the TPLE, referred to as the Acquired Fund, into the TPLC, known as the Acquiring Fund. Both funds share similar investment strategies, ensuring a seamless transition for shareholders. The Board of Trustees is set to finalize the merger after trading hours on a designated date in October. As part of this process, shareholders of the Acquired Fund will receive shares of the Acquiring Fund based on the net asset value held prior to the merger, along with cash equivalents for any fractional shares.

Tax Implications and Shareholder Benefits

For U.S. federal income tax purposes, this reorganization is designed to be tax-neutral for shareholders. Participants of the Acquired Fund are not expected to face immediate capital gains or losses as a result of this transaction, which adds an extra layer of reassurance for investors.

Enhanced Communication and Information Availability

The Timothy Plan intends to maintain transparency throughout this process. An information statement and prospectus detailing the merger and its implications for both funds will be distributed to shareholders well before the merger’s execution. This proactive approach underscores the Trust’s commitment to keeping shareholders informed without the need for a formal shareholder vote on this matter.

Guidance from Timothy Partners, Ltd.

Timothy Partners, Ltd., based in Maitland, Florida, provides investment strategy oversight for the Trust and its funds. With numerous years of expertise, TPL manages over $2.6 billion in assets, guiding the funds' investment according to their established objectives and policies. This wealth of experience is crucial to ensuring a well-managed merger that aligns with the best interests of investors.

A Commitment to Biblically Responsible Investing

Timothy Plan prides itself on its devotion to Biblically Responsible Investing. The company's unique approach involves screening out investments in companies that actively oppose Judeo-Christian values, thus providing investors with an opportunity to align their financial goals with their ethical beliefs. This thoughtful strategy attracts a diverse group of investors looking for responsible options in today's market.

What's Next for Timothy Plan?

As the planned merger approaches, Timothy Plan remains focused on enhancing its fund performance while ensuring that their commitment to shareholders remains steadfast. They continue to work closely alongside Victory Capital Management, Inc., the sub-adviser responsible for selecting securities, thereby ensuring that both funds can adapt to changing market conditions while adhering to their core investment philosophies.

Investing with Confidence

For those interested in investing with the Timothy Plan, the firm encourages potential investors to review the Fund’s investment objectives, charges, and risks thoroughly. By doing so, investors can make well-informed decisions about their financial future. Access to the Funds' prospectuses is available through Timothy Plan’s official resources to facilitate this understanding.

Frequently Asked Questions

What is the purpose of the merger between TPLE and TPLC?

The merger aims to streamline and enhance the Timothy Plan’s ETF offerings, providing better alignment and benefits for shareholders.

Will shareholders face tax consequences due to the merger?

No, the merger is designed to be tax-neutral for shareholders, with no immediate tax implications expected.

When is the merger expected to take place?

The mergers are anticipated to close after market hours on a specific date in October, with trading implications leading up to that point.

How will the merger benefit existing shareholders?

Shareholders of the Acquired Fund will receive shares of the Acquiring Fund equivalent to their net asset value at the time of the merger, aiding in a smooth transition.

What is Timothy Plan's focus in investment management?

Timothy Plan focuses on Biblically Responsible Investing, ensuring that investments align with Judeo-Christian values and ethics.

About The Author

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