Columbia Threadneedle closes four ETFs

Jun 23rd, 2017 | By | Category: ETF and Index News

Global asset manager Columbia Threadneedle has announced it is closing four of its ETFs, currently trading on NYSE Arca, including both of its actively managed funds, the Columbia Core Bond ETF (GMTB) and the Columbia Intermediate Municipal Bond ETF (GMMB).

Columbia Threadneedle closing active ETF suite

The ETFs will close and liquidate their assets on 28 July 2017.

GMTB provides broad exposure to US investment grade fixed income securities from issuers across industry sectors. GMMB provides a high level of tax free income by investing in intermediate maturity municipal bonds.

Columbia Threadneedle has also decided to close two of its passive emerging markets ETFs, the Columbia Emerging Markets Core ETF (EMCR) and the Columbia EM Strategic Opportunities ETF (EMDD). EMCR is a diversified, modified equal-weighted emerging markets portfolio which reduces the inherent tilt towards more mature industry groups typically found in traditional EM indices. EMDD invests in just five sectors, believed by Columbia Threadneedle to provide outperformance, across emerging markets.

Each of the funds had between $5 million and $7m in AUM as of the time of writing (23 June 2017).

All four ETFs will close and their respective assets will be liquidated to shareholders on or about 28 July 2017. The last date for authorised participants to transact in creation units of the ETFs will be 21 July 2017.

The last day of trading is also expected to be 21 July 2017, after which the ETFs will no longer engage in any business activities except for the purpose of winding up their business affairs, including selling portfolio assets to raise cash for the liquidations (which may take a week or more), discharging or making reasonable provision for the payment of all their liabilities, and liquidating and distributing their respective remaining assets to ETF shareholders.

Shareholders may sell their shares on or before 21 July 2017 and may incur customary brokerage charges. Shareholders who do not sell their shares on or before 21 July 2017 will receive cash equal to the amount of the net asset value of their respective shares as of the close of business on 28 July 2017.

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