NEW YORK, March 3, 2017 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today announced that its Board of Trustees has approved a reverse share split for the Global X MSCI Nigeria ETF (NYSE: NGE). NGE is the only ETF focused exclusively on the Nigerian market. The total market value of the shares outstanding will not be affected as a result of this split, except with respect to the redemption of fractional shares, as outlined below.
The firm will execute a 1-for-4 reverse split of the shares effective at the open of the market on March 16, 2017. A summary of the ETF undergoing a reverse share split is as follows.
Global X MSCI Nigeria ETF
The reverse split will raise the price of the shares for the fund and decrease the number of shares outstanding, without affecting the total value of the shares outstanding.
Hypothetical example of a 1-for-4 reverse split:
Number of Shares
Total Value ($U.S.)
Redemption of Fractional Shares and Tax Consequences for Each Reverse Split
As a result of the reverse splits, a shareholder of the ETF could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, each ETF will redeem for cash a shareholders' fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction for holders of ETF shares. Global X Management Company LLC does not impose a transaction fee on shareholders for such redemptions.
Some brokerage charges may apply as a result of the reverse split. These charges are made directly by the broker and are not charges from Global X Management Company LLC.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
Investing involves risk, including the possible loss of principal. The investable universe of companies in which the Fund may invest may be limited. The Fund is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market price returns are based upon the midpoint of the bid/ask spread at the close of the exchange and does not represent the returns an investor would receive if shares were trade at other times. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time.
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com.
Global X Funds are not sponsored, endorsed, issued, sold or promoted by MSCI nor does MSCI make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with MSCI.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Global X Management Company, LLC.
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SOURCE Global X Funds