Factor Advisors Announces the Closing of the PureFunds™ ISE Diamond/Gemstone ETF (NYSE Arca: GEMS) and the PureFunds™ ISE Mining Service ETF (NYSE Arca: MSXX)
MADISON, N.J., Jan. 10, 2014 /PRNewswire/ -- Factor Advisors LLC, the investment adviser to each series of FactorShares Trust, announced today that the PureFunds™ ISE Diamond/Gemstone ETF (NYSE Arca: GEMS) and the PureFunds™ ISE Mining Service ETF (NYSE Arca: MSXX) will be closed and liquidated in a measure aimed to benefit shareholders. After careful consideration, and at the recommendation of Factor Advisors and PureShares LLC, the business manager to the Funds, the Board of Trustees of FactorShares Trust has approved the closing and subsequent liquidation of GEMS and MSXX. Accordingly, each Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders on or about January 24, 2014.
The last day of trading of shares of the Funds on the NYSE Arca will be January 23, 2014. Following the last day of trading and prior to the Liquidation Date, shareholders will not be able to purchase or redeem shares from the Funds and will be unable to purchase or sell them in the secondary market. Prior to the last day of trading, shareholders may continue to purchase and sell Fund shares through a broker in the standard manner. Customary brokerage charges may apply to such transactions. Effectively immediately, each Fund will increase its cash holdings in contemplation of its liquidation. As a result, through the Liquidation Date, each Fund will deviate from its investment objective and strategies, as stated in the Fund's Prospectus, as it winds up its business and affairs.
About Factor Advisors®
Factor Advisors, LLC is a wholly owned subsidiary of GENCAP Ventures, LLC (GENCAP), an Exchange Traded Funds products and services company. GENCAP offers a full range of ETF services to the investment management community through its subsidiaries: Factor Advisors, LLC, Factor Capital Management, LLC, ETF Service Providers, LLC and GENCAP Strategies, LLC. The services provided include product management, ETF wholesaling and marketing. GENCAP offers a broad range of services for '33 Act commodity products as well as both active and passive '40 Act ETF funds.
As an innovator of ETF concepts, PureFunds strives to provide the market with easy access to in-demand niche sectors through Pure‐Play ETFs. PureFunds is a New Jersey based research and business management firm, serving as the Business Manager to the PureFunds ISE Diamond/Gemstone ETF, PureFunds ISE Mining Service ETF, and PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF. PureFunds aims to provide investors with tactical ETFs that may offer attractive investment opportunities in sectors that traditionally have been difficult to invest in.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained here. The statutory prospectus can be obtained by calling 877-756-PURE (877-7567873). Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The mining industry is highly volatile due to significant fluctuation in the prices of commodities, as well as political and regulatory developments. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than a diversified fund. Therefore, the Funds are more exposed to individual issuer volatility than a diversified fund. Funds that are less diversified across countries or geographic regions are generally riskier than more geographically diversified funds and risks associated with such countries or geographic regions may negatively affect a Fund. Investments in small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies. The PureFunds ISE Diamond/Gemstone ETF is subject to risks associated with demand and supply of gemstones in the form of jewelry/investments as well as industrial uses. Changes in consumer taste, consumer confidence, man-made alternatives, and spending among this segment of the population may have an adverse impact on the sale of gemstones in the market. The PureFunds ISE Mining Service ETF is subject to risks associated with adverse market conditions, increased competition, environmental concerns, fluctuations in commodity prices and supply and demand of hard commodities, decreased metals demand and the success of exploration projects. Legal or regulatory changes, as well as changes in governments' policies towards metals, could also adversely impact the mining services sector and therefore Fund performance.
The ISE Diamond/Gemstone Index is designed to reflect the performance of companies involved in the gemstone industry, including companies that produce, explore, and sell gemstones. The stocks are screened for liquidity and weighted according to modified free- float market capitalization. The Index generally is comprised of 20-30 securities. The Index was created and is maintained by ISE Indexes. An investment cannot be made directly in an index.
The ISE Mining Service Index is designed to reflect the performance of companies that manufacture, lease, sell and provide equipment, consulting or other services to the mining and mineral exploration and extraction industry. The stocks are screened for liquidity and weighted according to modified free-float market capitalization. The Index generally is comprised of 30-40 securities. The Index was created and is maintained by ISE Indexes. An investment cannot be made directly in an index.
The Funds' return may not match or achieve a high degree of correlation with the return of the Underlying Index. To the extent a Fund utilizes a sampling approach; it may experience tracking error to a greater extent than if a Fund had sought to replicate the Index. The Fund invests in some economies that are heavily dependent upon trading with key partners. Any reduction in this trading may cause an adverse impact on the economy in which the Fund invests. Funds that are less diversified across countries or geographic regions, such as Africa, Latin America, and Australia, are generally riskier than more geographically diversified funds and risks associated with such countries or geographic regions may negatively affect a Fund. Foreign countries can privatize entities and industries. Privatized entities may lose money or be renationalized. Any reduction in trading with key partners may cause an adverse impact on the economy in which the Fund invests.
Factor Advisors, LLC serves as the investment adviser and Esposito Partners, LLC serves as sub-adviser to the Funds. The Funds are distributed by Quasar Distributors, LLC which is not affiliated with Factor Advisors, LLC or any of its affiliates.
Before you invest in PureFunds ETFs, please refer to the prospectus for important information including investment objectives, risks, charges and expenses. Click here to see the prospectus. You may also obtain a hard copy of the prospectus by calling 1-877-756-PURE (1‐877-756‐7873). The prospectus should be read and considered carefully before you invest.
The Funds are distributed by Quasar Distributors, LLC.
SOURCE Factor Advisors LLC