Exchange Traded Concepts to Close and Liquidate AKROS MONTHLY PAYOUT ETF (NYSE:MPAY)
Rhea-AI Summary
Exchange Traded Concepts has announced the termination and liquidation of the AKROS MONTHLY PAYOUT ETF (NYSE:MPAY). The fund will cease operations and liquidate on April 25, 2025.
Key dates include:
- April 21, 2025: Fund closes to new creation units
- April 22, 2025: Last trading day on NYSE Arca
- April 25, 2025: Final liquidation and cash distribution to shareholders
During the liquidation period, the fund will be managed to facilitate orderly liquidation, potentially deviating from its stated investment strategy. Shareholders may face trading opportunities between April 21-22, with no secondary market trading available thereafter until liquidation. The final distribution will include accrued capital gains and dividends, representing taxable events for shareholders.
Positive
- Orderly liquidation process with clear timeline provided
- Pro rata cash distribution to shareholders including accrued gains and dividends
Negative
- Complete fund termination and delisting from NYSE
- trading opportunities during liquidation period
- Forced liquidation may result in unplanned tax consequences for shareholders
- Investment strategy deviation during liquidation period may impact fund performance
News Market Reaction
On the day this news was published, MPAY declined 1.23%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The Fund will be closed to orders for new creation units on April 21, 2025, and the last day of trading of the Fund's shares on the NYSE Arca, Inc. will be on or about April 22, 2025. From April 21, 2025 through the last day of trading, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for Fund shares during that time period. Customary brokerage charges may apply to such transactions. From the last day of trading through the Liquidation Date, shareholders will not be able to purchase or sell shares in the secondary market.
In anticipation of the liquidation, the Fund will be managed in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, in preparation for the liquidation, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategy, which may prevent the Fund from achieving its investment objective.
On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of liquidating the Fund. Once the distributions are complete, the Fund will terminate.
If you would like additional information, please call: (855) 955-1865 or visit: https://akrosetfs.com/fund/mpay.
Please retain this Supplement with your Summary Prospectus, Prospectus, and SAI for future reference.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 955-1865 or visit our website at https://akrosetfs.com/fund/mpay. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. The Fund's concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
Investment Products and Services:
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
View original content:https://www.prnewswire.com/news-releases/exchange-traded-concepts-to-close-and-liquidate-akros-monthly-payout-etf-nysempay-302413772.html
SOURCE Exchange Traded Concepts, LLC
FAQ
When will MPAY ETF stop trading on NYSE Arca?
What happens to MPAY shareholders after the liquidation date of April 25, 2025?
Can investors trade MPAY shares between April 21-25, 2025?
Will the MPAY ETF liquidation distribution be taxable for shareholders?
How will MPAY's investment strategy change during the liquidation period?
