Factor Advisors is closing and liquidating the PureFunds ISE Diamond/Gemstone ETF (GEMS) and the PureFunds ISE Mining Service ETF (MSXX) in a move aimed at benefiting shareholders.
At the recommendation of Factor Advisors and PureShares, 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 24 January 2014.
The last day of trading of shares of the funds on the NYSE Arca will be 23 January. 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.