VanEck is to close and liquidate two VanEck Vectors exchange-traded funds – the VanEck Vectors Gulf States Index ETF (MES) and the VanEck Vectors Indonesia Small-Cap ETF (IDXJ).
Shareholders of the funds may sell their holdings on NYSE Arca until market close on 28 September and they may incur typical transaction fees from their broker-dealer.
The funds’ shares will no longer trade on NYSE Arca after market close on that date, and the shares will subsequently be de-listed.
Shareholders who continue to hold shares of any of the funds on the funds’ liquidation date, which is expected to be on or about 18 October 2016, will receive a liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares.
Proceeds from the liquidation are currently scheduled to be sent to shareholders on or about 18 October, although this may occur prior to or later than this date.
For tax purposes, shareholders will generally recognise a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares. The funds will stop accepting creation orders from authorised participants on 28 September.
In addition, shareholders who hold shares of the funds may receive a final distribution of net income and capital gains earned by the funds and not previously distributed prior to liquidation.
The final tax status of distributions made by the funds, including the liquidating distribution, will be provided to shareholders with the year-end tax reporting for the funds (including any portion which may be treated as a return of capital for tax purposes, reducing a shareholder’s basis in such shares).