ARK Investment Management LLC Unveils Plans to Close Its ARK Transparency ETF
- ARK Investment LLC’s adviser disclosed it was compelled to make the decision to close the Fund on hearing that the Transparency Index (TRANSPCY) will cease operation.
ARK Investment Management LLC said it may be closing the ARK Transparency ETF dubbed “Fund” in a few days. ARK Investment Management LLC announced its new decision via a press release on Tuesday.
The company is a federally registered investment adviser that is focused solely on thematic investing in disruptive innovation. The investment adviser disclosed it was compelled to make the decision to close the Fund on hearing that the Transparency Index (TRANSPCY) will cease operation.
Ark Investment Restructures
According to the announcement, ARK Investment Management LLC revealed it got a notice from Transparency Global that it will stop calculating The Transparency Index on the 31st of July, 2022. The adviser further revealed that its failure to find a suitable solution in providing an alternative Index has triggered its decision to close the Fund.
Consequently, the fund will cease operation from July 26, 2022, or as soon as practical thereafter, the platform noted.
Prior to the scheduled closing date, the Fund will stop accepting creation units of the fund from July 21, 2022. Thereafter, the Fund will cease trading on the Cboe BZX Exchange (CBOE) as of the specified close of regular trading on the CBOE.
Reportedly, the company’s shareholders have from now till the closing date to redeem their investment in the Fund. ARK Investment Management LLC noted that shareholders can redeem their investment by requesting it through their financial intermediary.
The investment adviser to the firm further noted that orders from shareholders who want to redeem their investments will be transacted in-kind through an Authorized Participant and customary brokerage. This may include possible charges.
Notably, the redemption activities will last from now till the closing date. Meanwhile, the scheduled closing date will see the shareholders being able to sell their shares to certain broker-dealers. It further noted that there is no assurance that there will be a market for a Fund’s shares during this period.
The firm has also scheduled July 26, 2022, and July 29, 2022, as the period when the Fund will make necessary efforts to close and liquidate its portfolio. July 29, 2022, has been scheduled as the Payable Date, hence shareholders who have not been able to redeem or sell their shares before the specified date will have the Fund distributing any remaining cash pro rata to them.