Emerging Global Advisors (EGA), the investment advisor to the EGShares exchange-traded funds ("Funds"), today announced it will close four Funds representing less than 1% of assets under management.
Trading on the NYSE Arca for the shares of the Funds listed below will be suspended prior to the open of business on Tuesday, September 30, 2014. Shareholders may sell their holdings on or before Monday, September 29, 2014 and may incur customary brokerage charges. Shareholders who do not sell their holdings on or before Monday, September 29, 2014 will receive cash equal to the amount of the net asset value of their shares. In addition, each Fund may also make a final clean-up distribution of any accrued capital gains and income to shareholders of record as of the close of trading on NYSE Arca on September 29, 2014. The Advisor will bear all legal and administrative expenses associated with these Fund closures.
The Board of Trustees of the EGA Emerging Global Shares Trust has authorized these Fund liquidations. The affected Funds are:
|Fund Name||Ticker Symbol|
|EGShares China Infrastructure ETF||CHXX|
|EGShares TCW EM Intermediate Term Investment Grade Bond ETF||IEMF|
|EGShares TCW EM Long Term Investment Grade Bond ETF||LEMF|
|EGShares TCW EM Short Term Investment Grade Bond ETF||SEMF|
Please see the Prospectus dated July 29, 2014 for each of the Funds listed above for important disclosures regarding the closures. For more information about the liquidation and termination process, please contact EGA at 1-888-800-4347.
About Emerging Global Advisors (EGA)
Emerging Global Advisors (EGA) is an emerging markets asset manager that employs a disciplined, rules-based investment process rooted in research and portfolio strategy. Our investment strategies, including our EGShares ETFs, are designed to generate alpha in emerging and frontier markets through core equity, thematic and dividend offerings. Our investment insight and implementation expertise can provide investors greater influence over the characteristics of their developing market holdings. For more information, please visit emergingglobaladvisors.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of a Fund before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4347 or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before investing.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility, and lower trading volume. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar. A fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small cap and mid cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
IEMF, LEMF and SEMF can invest up to 20% of their assets in securities that are rated below investment grade. Non-investment grade securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. Non-investment grade securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal. Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where the investments are made. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile. The Fund’s investments denominated in foreign currencies will decline in value if the foreign currency declines in value relative to the U.S. dollar. You cannot invest directly in an index.
ETF shares are not individually redeemed and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
EGASM, EGSharesSM and EGAISM are registered service marks of Emerging Global Advisors, LLC. All other trademarks, service marks or registered trademarks are the property of their respective owners.
EGShares Funds are distributed by ALPS Distributors, Inc. EGA, keating/co and ALPS Distributors, Inc. are unaffiliated entities.
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EGS001987 | Expires 9/1/2015
Bill Fallon, 212-925-6900