NEW YORK, Sept. 22, 2017 /PRNewswire/ -- Global X Funds, the New York-based exchange-traded funds provider, today announced it will close the following funds: the Global X Brazil Mid Cap ETF (BRAZ), the Global X Brazil Consumer ETF (BRAQ), the Global X Guru® Activist Index ETF (ACTX), the Global X Guru® International Index ETF (GURI), the Global X Permanent ETF (PERM), the Global X Junior MLP ETF (MLPJ), and the Global X FTSE Andean 40 ETF (AND).
Shareholders may sell their holdings in the Funds prior to the end of the trading day on Friday, October 6, 2017 and customary brokerage charges may apply to these transactions. The Funds will cease trading at the close of regular trading on Friday, October 6, 2017. Effective immediately, the Fund no longer will accept creation orders. Each Fund will liquidate on or around Friday, October 13, 2017. Any person holding shares in a Fund as of its liquidation date will receive a cash distribution equal to the net asset value of the investor's shares as of that date. Global X Management Company LLC, the adviser to the Funds, will bear all fees and expenses that may be incurred in connection with the liquidation of the Funds and the distribution of cash proceeds to investors, other than brokerage fees and expenses. The combined assets under management within the Funds represent less than 1% of the assets of Global X Funds.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, Global X is distinguished by its smart core, income, alpha, risk management and access suites of ETFs and has more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions.
Investing involves risk, including possible loss of principal. International investments may involve risk of unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or economic or political instability in other nations. Narrowly focused investments may be subject to higher volatility. These funds are non-diversified.
Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer's financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow. MLPJ invests in the energy industry, which entails significant risk and volatility. The Fund also pays distributions, which are generally treated as a return of capital for tax purposes rather than from net profits and shareholders should not assume that the source of distributions is from the net profits of the fund.
Cash distributions from an MLP to MLPJ that exceed such Fund's allocable share of such MLP's net taxable income are considered a tax-deferred return of capital that will reduce the Fund's adjusted tax basis in the equity securities of the MLP. These reductions in such Fund's adjusted tax basis in the MLP equity securities will increase the amount of gain (or decrease the amount of loss) recognized by the Fund on a subsequent sale of the securities. The Fund will accrue deferred income taxes for any future tax liability associated with (i) that portion of MLP distributions considered to be a tax-deferred return of capital as well as (ii) capital appreciation of its investments. Upon the sale of an MLP security, the Fund may be liable for previously deferred taxes. The Fund will rely to some extent on information provided by the MLPs, which is not necessarily timely, to estimate deferred tax liability for purposes of financial statement reporting and determining the net asset value.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
SOURCE Global X Funds
Share this article