Claymore, focusing on successful funds, closes four funds that haven’t collected many assets.
Claymore Securities, the Lisle, Ill.-based money management firm that was acquired by Guggenheim Partners in October, will shut four ETFs on Sept. 10 that have been lightly traded so that it can turn its attention to more prospective funds, the company said in a statement.
“We continue to be committed to developing innovative investment solutions for clients and we want to dedicate our resources to areas of greater investor interest," Steven A. Baffico, the firm’s senior managing director, said in the statement. "After careful evaluation of our product lineup, we believe these changes are in the best interest of our clients and shareholders."
The funds are:
- The Claymore/Zacks Dividend Rotation ETF (NYSEArca: IRO). It had gathered $12.5 million, according to information on Claymore’s Web site.
- The Claymore/Zacks Country Rotation ETF (NYSEArca: CRO). It has about $3 million;
- The Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF (NYSEArca: EXB). It has $2.8 million.
- The Claymore/Robb Report Global Luxury Index ETF (NYSEArca: ROB). It had gathered $16.2 million.
According to research from Morgan Stanley Smith Barney’s economics team, 118 U.S.-listed ETFs have shut down since the end of 2007 through June 30. Although 121 ETFs have been launched in 2010, there have also been 23 liquidations, meaning net new issuance of ETFs this year has been 98 funds through the end of the second quarter. The note said the pace of liquidations has slowed from 44 in 2008 and 51 in 2009.
Terms Of The Closures
Shareholders may sell their fund shares prior to the market close on Sept. 10, but the market close on that date, the funds will no longer accept creation or redemption orders for fund shares, the company said. Transactions executed prior to Sept. 10 will be subject to fees normally assessed by broker-dealers, Claymore said.
From Sept. 13, 2010, through Sept. 17, 2010, shareholders may be able to sell their shares to certain broker-dealers, but there can be no assurance there will be a market for the funds.
Finally, all shareholders remaining on Sept. 17, will receive a cash distribution into their brokerage account representing the value of their shares as of that date, which will also include any capital gains and dividends.
Claymore has about $3 billion under management.