NEWTOWN SQUARE, PA — Empowered Funds LLC will liquidate two Sophus Capital emerging-market exchange-traded funds on or about Sept. 28, ending trading after Sept. 25 and returning the remaining assets to shareholders in cash.
The Sophus Capital Emerging Market ETF (NASDAQ: EMEM) and Sophus Capital Emerging Market Small Cap ETF (NASDAQ: EMSC) will cease trading on Nasdaq immediately after the close of regular trading Sept. 25. The funds will also stop accepting creation and redemption orders after that date.
Investors may sell their shares before liquidation, subject to customary brokerage charges. Empowered Funds cautioned that shareholders may be limited to selling through certain broker-dealers and that a market for the shares is not assured during the period leading up to liquidation.
As the funds prepare to close, some or all of their portfolios may no longer be invested in accordance with their stated investment objectives and strategies. The funds may also increase their cash holdings.
Following the Sept. 28 liquidation date, each fund will distribute cash on a pro rata basis to shareholders of record as of that date, subject to required withholding. The funds will terminate after the distributions are completed.
Liquidation proceeds generally are expected to be treated as received in exchange for shares, potentially resulting in a capital gain or loss depending on an investor’s tax basis. Payments may also include distributions of accrued capital gains and dividends.
Each fund’s net asset value on the liquidation date will reflect any costs associated with closing the fund.
Empowered Funds, which does business as ETF Architect, serves as investment adviser. Sophus Capital LLC sponsors the funds under an agreement with ETF Architect, while Consilium Investment Management LLC, doing business as Sophus Capital, serves as sub-adviser.
PINE Distributors LLC distributes the funds and is not affiliated with ETF Architect, Sophus Capital LLC or Consilium Investment Management.
Additional fund and prospectus information is available at https://sophus-capital-etfs.com.
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