MALVERN, PA — Following a strategic review, the Board of Trustees of Pacer Funds Trust has decided to close and liquidate the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF (NYSE: TRPL), with Pacer Advisors, Inc. serving as the investment adviser to the fund.
The move is set to commence on or about January 25, 2024, when the fund will begin to liquidate its portfolio assets. This process will lead to an increase in cash holdings, causing the fund to deviate from its stated investment objective and strategies, as outlined in the fund’s prospectus.
This development holds significant implications for investors. The fund will stop accepting orders for new creation units after the close of business on the day before February 1, 2024, identified as the “Liquidation Date.” Trading in shares of the fund will also be halted prior to the market opening on the Liquidation Date.
Shareholders may face limitations on selling their shares ahead of the Liquidation Date, potentially only able to sell to certain broker-dealers. Furthermore, there’s no guarantee that a market for the fund’s shares will exist during this time period, and customary brokerage charges may apply to such transactions.
On the Liquidation Date, the fund will liquidate its assets and distribute cash pro rata to all remaining shareholders, marking a taxable event. Shareholders are advised to consult their tax advisors to understand the income tax consequences of the liquidation. The distributions will include any accrued capital gains and dividends.
Once the distributions are completed, the fund will terminate. The proceeds from the liquidation will be sent to shareholders promptly after the Liquidation Date. As the financial world continues to shift and evolve, this decision by the Pacer Funds Trust underscores the importance for investors to stay informed and adapt to changes in the investment landscape.
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