PIMCO is to close and liquidate three exchange traded funds (ETFs). The firm regularly reviews its product range to ensure it is meeting the requirements of clients in continuing to add value.
The funds to close are the PIMCO 3-7 Year US Treasury Index ETF (FIVZ), PIMCO 7-15 Year US Treasury Index ETF (TENZ), and PIMCO Foreign Currency Strategy Active ETF (FORX).
The liquidation date for the funds will be on or around 30 September, 2015 (Liquidation Date). The last day of trading on NYSE Arca, for each liquidating fund is expected to be 23 September, 2015. There can be no assurance that there will be a market for the purchase or sale of fund shares during the time between the market close on 23 September, 2015 and the Liquidation Date, because fund shares will not be traded on NYSE Arca.
Effective upon the close of business on 23 September, 2015, FIVZ, TENZ, and FORX will no longer accept orders for the purchase of Creation Units. Beginning when the Liquidating Funds commence liquidation of their portfolio, each Liquidating Fund may not pursue its investment objective or engage in normal business activities, except for the purpose of winding up its business and affairs, preserving the value of its assets, paying its liabilities, and distributing its remaining assets to shareholders.
In connection with the Liquidation, any shares of FIVZ, TENZ, and FORX outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date without the imposition of customary redemption transaction fees. Although the Liquidation is not expected to be a taxable event for FIVZ, TENZ, and FORX, for taxable shareholders the automatic redemption of shares of FIVZ, TENZ, and FORX on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily sell his or her shares on NYSE Arca (subject to customary transaction fees) until the market close on 23 September, 2015.