Chicago-based Ziegler Capital Management has announced that the board of trustees for the Ziegler Exchange Traded Trust has approved the liquidation of the NYSE Arca Tech 100 ETF, which ha
Chicago-based Ziegler Capital Management has announced that the board of trustees for the Ziegler Exchange Traded Trust has approved the liquidation of the NYSE Arca Tech 100 ETF, which has failed to build momentum among investors since its launch 20 months ago.
The exchange-trade fund, which tracks the NYSE Arca Tech 100 Index, was launched on March 26, 2007, but as of the end of October it had just USD3.6m in assets. The board decided that closing the ETF was in the best interests of the fund and its shareholders because it had not gathered sufficient assets to continue its business and operations in an economically viable manner.
‘While we no longer sponsor an ETF, we remain committed to our core asset management business,’ says Elizabeth A. Watkins, president of the fund’s investment advisor Ziegler Capital Management.
December 15 will be the last day the fund’s shares are listed and traded on NYSE Arca, and the last day on which creation unit aggregations of fund shares may be purchased or redeemed.
NYSE Arca will halt trading in the fund before the open of trading on December 16, and between then and December 25 the fund will be in the process of closing down and liquidating its portfolio. It will begin distributing its assets for payment to shareholders on or about December 26.
The NYSE Arca Tech 100 ETF is a sub-fund of the Ziegler Exchange Traded Trust, an open-ended investment company. Ziegler Capital Management is a wholly-owned subsidiary of Ziegler Companies, an investment banking and investment services boutique, and currently manages approximately USD3.1bn in fixed-income and equity assets, including USD700m in mutual fund investments through its North Track Funds family.
