BOSTON, Nov. 17, 2017 /PRNewswire/ -- FFCM LLC ("FFCM") and O'Shares Investments, Inc. ("O'Shares") announce the closing of the two ETFs listed below (the "Funds").
O'Shares FTSE Europe Quality Dividend Hedged ETF
O'Shares FTSE Asia Pacific Quality Dividend Hedged ETF
"Investors have shown great demand for several of the O'Shares ETFs, including O'Shares FTSE U.S. Quality Dividend ETF (ticker OUSA) for U.S. large caps and O'Shares FTSE Russell US Small Cap Quality Dividend ETF (ticker OUSM) for U.S. small caps. However, we have had limited demand for our currency hedged ETFs investing in Europe and Asia. Due to the small size and limited demand for these products, the decision has been made to close the Funds, so we can direct resources to developing new O'Shares ETFs to meet investors' demand for different strategies," stated Connor O'Brien, CEO of O'Shares.
The Funds will cease trading on the NYSE Arca, Inc. ("NYSE Arca") and will be closed to purchase by investors as of the close of regular trading on the NYSE on November 30, 2017 (the "Closing Date"). The Funds will not accept creation unit orders from authorized participants after the Closing Date, and trading on the NYSE Arca for the shares of the Funds will be suspended prior to the open of business on December 1, 2017. Shareholders may sell their holdings on or before the Closing Date and customary brokerage charges may apply to such transactions.
After the Closing Date until December 8, 2017 (the "Liquidation Date"), the Funds will undertake the process of closing down and liquidating their respective portfolios. This process will result in the Funds increasing their cash holdings and not tracking their underlying indexes.
On or about December 12, 2017, shareholders who do not sell their holdings on or before the Closing Date will receive cash equal to the amount of the net asset value of their shares as of the Liquidation Date, which will include the costs of liquidating the relevant portfolio and closing the Fund. These distributions may be taxable and will include any accrued capital gains and dividends. Once the liquidating distribution is completed by each Fund, it will terminate.
O'Shares Investments, Inc. ("O'Shares"), the Funds' sponsor, informed FFCM, the Funds' investment adviser, and the Funds' Board of Trustees (the "Board") that, due to limited investor demand for the Funds, the Funds could not conduct their business and operations in an economically efficient manner over the long term due to the Funds' inability to attract sufficient assets. Based on this assessment of the Funds' viability, O'Shares and FFCM recommended the Funds' liquidation to the Board. The Board determined, after considering this recommendation, that it is in the best interests of each Fund and its shareholders to liquidate and terminate the Funds as described above. Accordingly, the Board authorized the orderly liquidation of the Funds.
Founded in 2009, FFCM, LLC is a Boston-based investment advisory firm founded with a vision to provide investors with efficient and cost effective exposure to investment factors through a family of ETFs and investment strategies. The leadership team at FFCM has extensive experience in traditional and alternative factor driven investments, ETFs, quantitative investing, operations and portfolio management.
FFCM is part of the AGFiQ quantitative investment platform for AGF Investments Inc. ("AGF", an affiliate of FFCM). AGFiQ is powered by an intellectually diverse, multi-disciplined team that combines the complementary strengths of investment professionals across AGF and its affiliates from Highstreet Asset Management Inc. and FFCM. www.AGFiQ.com
O'Shares ETF Investments
O'Shares provides ETFs for conservative long-term wealth management, using FTSE Russell Quality/Volatility/Yield rules-based indexes across the family of O'Shares ETFs investing in equities, across the U.S., Europe and Asia-Pacific regions. O'Shares ETFs are designed to be core investment holdings providing cost-efficient long-term investment performance, with less risk and more yield, by holding portfolios of large-cap, mid-cap and small-cap companies that meet financial criteria for quality, low volatility and yield. oshares.com
For Further Information:
Before you invest in O'Shares Investments Funds, please refer to the prospectus for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please visit www.oshares.com to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing including the possible loss of principal.
Concentration in a particular industry or sector will subject the Fund to loss due to adverse occurrences that may affect that industry or sector. The Fund may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. The Fund's emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after a Fund's purchase of such a company's securities. Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Exposures to foreign securities entail special risks, including political, diplomatic, economic, foreign market and trading risks. In addition, unless perfectly hedged, the Fund's investments in securities denominated in other currencies could decline due to changes in local currency relative to the value of the U.S. dollar, which may affect the Fund's returns. The Fund's hedging strategies may not be successful, and even if they are successful, the Fund's exposure to foreign currency fluctuations is not expected to be fully hedged at all times. See the prospectus for specific risks regarding the Fund.
Returns on investments in foreign securities could be more volatile than, or trail the returns on, investments in U.S. securities. Exposures to foreign securities entail special risks, including political, diplomatic, economic, foreign market and trading risks. In addition, unless perfectly hedged, the Fund's investments in securities denominated in other currencies could decline due to changes in local currency relative to the value of the U.S. dollar, which may affect the Fund's returns.
Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those Shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns.
O'Shares Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O'Shares Investments or any of its affiliates.
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SOURCE O'Shares Investments