Legg Mason, Inc. (NYSE:LM) announced today that it has determined to close and liquidate the exchange-traded funds listed below (the “funds”) based on an ongoing review of its product lineup and to ensure it meets the evolving needs of its clients. Proceeds of the liquidation are currently expected to be sent to shareholders of the funds on or about March 22, 2019 (the “Liquidation Date”).
Effective as of the close of business on March 6, 2019, the funds will no longer accept orders for the purchase of creation units. It is expected that the funds will cease trading on NASDAQ on or about March 15, 2019, and subsequently will be delisted.
“As with all of our investment solutions, we are always seeking to deliver on investor needs,” said Rick Genoni, Legg Mason’s Head of ETF Product Management. “We are always evaluating our product lineup to ensure it is relevant to investor demand. In this case, we have determined a timely liquidation is the best option. We are pleased with the performance and the investor reception to other ETFs we offer,” said Genoni.
In connection with the liquidations, any shares of a fund outstanding on the Liquidation Date will be automatically redeemed on the Liquidation Date. After payment (or setting aside for later payment) of the fund’s obligations, shareholders who remain in the fund until the Liquidation Date will receive liquidation distribution(s) based on the current aggregate net asset value of the shares of the fund that such shareholder then holds. The funds may or may not, depending upon each fund’s circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments.
Shareholders of each fund may sell their shares of the fund on NASDAQ until the market close on the date a fund ceases trading and may incur customary transaction fees from their broker-dealer in connection with such sales.
Legg Mason’s net assets for ETFs exceed $800 million as of January 31, 2019. For more information, shareholders of the funds may call 1-877-721-1926.
|Legg Mason Developed ex-US Diversified Core ETF||DDBI||NASDAQ|
|Legg Mason Emerging Markets Diversified Core ETF||EDBI||NASDAQ|
|Legg Mason US Diversified Core ETF||UDBI||NASDAQ|
About Legg Mason
Legg Mason is a global asset management firm with $727.2 billion in assets under management as of December 31, 2018. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).
If you are neither a resident nor a citizen of the United States or if you are a non-U.S. entity, the ETF’s ordinary income dividends (which include distributions of net short-term capital gains) will generally be subject to a 30% U.S. federal withholding tax, unless a lower treaty rate applies. For further information, please see the ETF’s prospectus which is available on the website www.leggmason.com. Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. For more information, please see the ETF’s statement of additional information (SAI) which can be found on www.leggmason.com.
Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.
All investments involve risk, including loss of principal. Before investing, carefully consider a Fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, which is available at www.leggmason.com. Please read it carefully.
© 2019 Legg Mason Investor Services, LLC, member FINRA, SIPC., a Legg Mason, Inc. subsidiary. TN19-017