Legg Mason, Inc. has decided to close and liquidate a series of exchange-traded funds (ETFs) based on an ongoing review of its product lineup. Proceeds of the liquidation are currently expected to be sent to shareholders of the funds on or about March 22.
Effective as of March 6, the Legg Mason Developed ex-US Diversified Core ETF, Legg Mason Emerging Markets Diversified Core ETF and Legg Mason US Diversified Core ETF will no longer accept orders for the purchase of creation units. It is expected that the funds will cease trading on NASDAQ on or about March 15, and subsequently will be delisted, according to Legg Mason.
“As with all of our investment solutions, we are always seeking to deliver on investor needs,” says Rick Genoni, Legg Mason’s head of ETF product management. “We are always evaluating our product lineup to ensure it is relevant to investor demand. In this case, we have determined a timely liquidation is the best option. We are pleased with the performance and the investor reception to other ETFs we offer.”
In connection with the liquidations, any shares of a fund outstanding on the liquidation date will be automatically redeemed. After payment (or setting aside for later payment) of the fund’s obligations, shareholders who remain in the fund until the liquidation date will receive liquidation distribution(s) based on the current aggregate net asset value of the shares of the fund that such shareholder then holds. The funds may or may not, depending upon each fund’s circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments.
Shareholders may sell their shares of a fund on NASDAQ until the market close on the date a fund ceases trading and may incur customary transaction fees from their broker-dealer in connection with such sales.