ALPS ETF Trust plans to fold the Jefferies CRB Global Agriculture Equity Index Fund (NYSE:CRBA) and Jefferies CRB Global Industrial Metals Equity Index Fund (NYSE:CRBI). The two commodity-focused ETFs will close to new investors on Dec. 22 and will liquidate on Dec. 28.
ALPS ETF Trust’s Board of Trustees’ decision was made after consultation with ALPS Advisors, Inc., the investment adviser to the funds. The board determined it was advisable and in the best interests of the funds and their shareholders to liquidate the funds.
Since the beginning of the year,�GREENHAVEN Continuous Commodity Index Fund (NYSE:GCC) is down around 11% while Market Vectors-RVE Hard Asset Producers (ETF) (NYSE:HAP) — stocks of commodity producers — have declined almost 16%.
The last day of trading on the NYSE Arca for CRBA and CRBI is Thursday. Beginning immediately through Dec. 27, the funds will be in the process of closing down and liquidating their portfolios. From Dec. 23, 2011 to Dec. 27, 2011, shareholders may be able to sell their shares to certain broker-dealers, but there’s no assurance there will be a market for the funds.
Any person holding shares in the funds as of the liquidation date of Dec. 28, 2011, will receive a cash distribution equal to the net asset value of their shares as of that date. Shareholders receiving this cash distribution will not incur transaction fees in connection with this distribution or the liquidation of their shares in the funds. However, a portion of the distribution may represent an ordinary income dividend or a capital gain distribution.
The liquidation process for the Jefferies ETFs will result in the funds not tracking their underlying indices and their cash holdings increasing, which might not be consistent with the funds’ investment objectives and strategies.
For commodity-focused investors, ALPS also offers the Jefferies CRB Global Commodity ETF (NYSE:CRBQ) and the Jefferies CRB Wildcatters Energy & Production Equity ETF (NYSE:WCAT).
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