AdvisorShares is consolidating its 40 Act Currency Hedged Gold ETF suite by closing two of the four exchange traded funds in the range.
The AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR) and the AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) backed by their ongoing growth and investor interest will remain open for new shareholders. The AdvisorShares Board of Trustees approved the closings and subsequent liquidations of the AdvisorShares Gartman Gold/British Pound ETF (NYSE Arca: GGBP) and the AdvisorShares International Gold ETF (NYSE Arca: GLDE).
Following their last day of trading on 26 January, 2015, both GGBP and GLDE will cease operations, including unit creations, withdraw their assets, and distribute the remaining proceeds to shareholders on or after 30 January, 2015.
Gold historically has been used a universal safe haven and alternative currency, and funding (going long) the precious metal through a declining currency (going short) can affect its value.
As the US dollar continues to strengthen, the value of gold predicated in weakening international currencies has made greater gains during the last year. In addition to gold’s value via euro and yen terms, gold held in British pound terms displayed outperformance against gold in US dollar terms in the last one-year period. Despite such performance, as well as the added diversification of holding gold in multiple currencies within a single fund, the advisor and sub-advisor decided the most compelling solution to capture this investment theme is through the gold/euro and gold/yen investment strategies.
Noah Hamman, chief executive officer of AdvisorShares, says: “We believe this consolidation represents a unique opportunity for our firm to concentrate on two emerging investment themes influenced by unprecedented fiscal policies enacted by the Bank of Japan and the European Central Bank. For investors and advisors who seek gold exposure, there can be a definitive difference in purchasing gold in US dollars as opposed to owning gold predicated in euro and yen terms. Stemming on an investment theme long-advocated for by our partner Dennis Gartman, we believe the currency hedging exposure that GEUR and GYEN offer may provide an added benefit to an investment portfolio’s gold allocation.”