Claymore Gold Bullion Trust has met the requirements of its automatic conversion feature and will be converting into an open-end exchange traded fund (“ETF”), Claymore Investments, Inc. said Monday.
The fund was previously a closed-end investment trust, the units and warrants of which were offered to the public under a prospectus dated May 19, 2009 and issued at the closing of its initial public offering.
As set out in the prospectus, the fund was to automatically convert into an ETF if, commencing after Nov. 28, 2009, the daily weighted average trading price of the fund units was greater than a discount of 2% of the net asset value per fund unit for that day, for a period of 10 consecutive trading days.
Claymore says the conversion test has been met and the fund intends to file a preliminary prospectus qualifying the continuous distribution of its hedged common class units, as well as a new class of non-hedged common class units, on Dec. 14. The fund will also change its name to the Claymore Gold Bullion ETF.
The conversion of the fund to an ETF shall be effective upon the issuance of a receipt for a final prospectus in relation to the continuous offering of the units, which conversion is expected to be completed in January 2010.
By converting to an ETF, the fund is expected to provide unitholders with several important benefits including more efficient trading, as well as greater market liquidity, Claymore says.
The conversion to an ETF will not change the investment objective or investment restrictions of the fund.
“The Claymore Gold Bullion ETF will bring enhanced liquidity to the marketplace in a secure and low-cost manner,” says Som Seif, President of Claymore Investments, Inc.
IE
Claymore Gold Bullion Trust to convert to ETF
Benefits of conversion include more efficient trading, greater market liquidity
- By: IE Staff
- December 14, 2009 December 14, 2009
- 14:15