Absolute Shares Trust to Close and Liquidate Two ETFs ? WBI BullBear Global Income ETF (WBII) and WBI BullBear Trend Switch US 3000 Total Return ETF (WBIT)
The Board of Trustees of the Absolute Shares Trust (the "Trust") has approved a Plan of Liquidation and Termination for two of its exchange traded funds: WBI BullBear Global Income ETF (WBII) and WBI BullBear Trend Switch US 3000 Total Return ETF (WBIT, together with WBII the "Funds" and each individually a "Fund"). The Board acted to close the Funds based upon the recommendation of WBI Investments, Inc., the sub-advisor to the Funds (the "Sub-Advisor"). The Sub- Adviser undertook a comprehensive review of the viability of each series of the Trust, considering investment strategies, redundancies, as well as the size and economies of scale of each series of the Trust in light of anticipated short and intermediate-term investor demand. Thus, the Sub-Adviser has determined that continued operation of the two identified series is not in the best interests of the Shareholders of the Funds.
October 7, 2022 will be the Funds' last full day of trading on NYSE Arca, Inc. ("NYSE Arca"). Effective as of the close of business on October 7, 2022, the Funds will no longer accept orders for the purchase of Creation Units. Beginning when the Funds commence the liquidation of their portfolios, the Funds may not pursue their respective investment objectives or, with certain exceptions, engage in normal business activities, and each Fund may hold cash and securities that may not be consistent with that Fund's investment objective and strategy.
The liquidation date for the Funds will be on or about October 14, 2022 ("Liquidation Date"). NYSE Arca is expected to halt trading in shares of each Fund after the market close on October 7, 2022. There can be no assurance that there will be a market for the purchase or sale of Fund shares during the time between the market close on October 7, 2022 and the Liquidation Date, because Fund shares will not be traded on NYSE Arca. Shareholders of each Fund may sell their shares of the Fund on NYSE Arca until the market close on October 7, 2022 and may incur customary transaction fees from their broker-dealer in connection with such sales. Prior to the Liquidation Date, Authorized Participants may continue to submit orders to the Funds for the redemption of Creation Units.
In connection with the liquidations, any shares of a Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date without the imposition of customary redemption transaction fees. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities, including certain operational costs of liquidating the Fund. The Sub-Advisor will bear all administrative expenses incurred in connection with the liquidation and termination of the Funds. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable and will be made to all Fund shareholders at the time of the liquidations.
Although the liquidations are not expected to be taxable events for the Funds, for taxable shareholders, the automatic redemption of shares of the Funds on the Liquidation Date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes. Please consult your personal tax advisor about the potential tax consequences.
For additional information about the liquidations, shareholders of the Funds may call (855) WBI-ETFS or (855) 924-3837, or by sending an email request to [email protected].
Investments involve risk. Principal loss is possible.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus and summary prospectus containing this and other information about the Funds please visit our website at www.wbietfs.com or call 1-800-772-5810. Read the prospectus carefully before investing.
Foreside Fund Services, LLC, Distributor
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