EventShares, the sponsor of the first family of actively managed Exchange-Traded Funds (ETFs) designed to give investors exposure to major multi-factor government policy-driven events and themes, is combining the strategies from its three initial ETFs into a new, broad-based policy fund, the company announced today.
Effective April 19, 2018, the EventShares U.S. Tax Reform Fund (TAXR), will be renamed the EventShares U.S. Policy Alpha ETF (BATS:PLCY). In addition, the firm is announcing the liquidation of the EventShares Republican Polices Fund (GOP) and the EventShares Democratic Policies Fund (DEMS), effective April 27, 2018, with policy catalysts from those portfolios to be incorporated into PLCY.
“It has been our view from the start that policy is an investable leading indicator, and we have seen that thesis play out in the outperformance of GOP and DEMS since launch, with both market prices as of April 18, 2018 exceeding the returns of the S&P 500 since inception and through some turbulent market conditions,” said Ben Phillips, chief investment officer at EventShares.
“At the same time, however, GOP and DEMS were never intended as vehicles to express a political point of view, though they were viewed by some investors and advisors in that light. They were designed to provide exposure to the policies of the two major parties, regardless of an investor’s political affiliation. With the Policy Alpha fund, we’ve created an investment vehicle that we believe provides access to our best ideas, giving investors the opportunity to get exposure to policy without suggesting a political commitment,” Phillips said.
PLCY will look to combine the “best ideas” from the three predecessor ETFs to provide exposure to companies and sectors impacted by a wider range of U.S. government policies and regulations. While tax reform and related policies will continue to play a significant role in the fund, there will be other drivers as well, including trade, defense, healthcare, education, border security, and environmental concerns. The fund will continue to be actively managed.
GOP and DEMS Plan of Liquidation
The Funds will no longer accept creation orders after Tuesday, April 24, 2018. The final day of trading on the Funds’ respective exchanges will also be Tuesday, April 24, 2018. Shareholders who do not sell their Fund shares by this date will have their shares automatically redeemed for cash based on the Funds’ net asset value (NAV), which is expected to be provided to shareholders through their brokers or other financial intermediaries on or around Friday, April 27, 2018, the Funds’ last day of operations. Additional information can be found in the EventShares Fund Changes: FAQ document here.
GOP and DEMS Inception Date: 10/17/2017
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 Eastern Time and do not represent the returns you would receive if you traded shares at other times. For performance data current to the most recent month-end and standardized quarter-end performance, please call 1-877-539-1510, or visit www.EventSharesFunds.com/gop and www.EventSharesFunds.com/dems.
About EventShares
EventShares is an asset manager located in New York City focused on the impacts created by legislation, regulation, and fiscal policy. The firm is founded on the belief that policy is a powerful leading indicator for companies. We seek out investments with embedded policy catalysts we believe offer better-than-expected return opportunities (alpha).
For more information, visit www.eventsharesfunds.com and follow the firm’s Twitter feed @Event_Shares.
Important Information
Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about the Fund, please call (877) 539-1510. Read the prospectus carefully before investing.
Funds distributed by Foreside Fund Services, LLC.
Investing involves risk, including the loss of principal. There can be no assurance that the Funds will achieve their investment objective. Losing all or a portion of your investment is a risk of investing in the Funds.
PLCY Risks
The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. Failure of the government to take positive action on policy and regulation themes, as well as other factors besides government action, may result in losses. Unanticipated political or social developments may result in sudden and significant investment losses. Political and social developments that are anticipated but at odds with a Fund's theme may result in sudden and significant investment losses. Investing in securities of small and medium capitalization companies may involve greater volatility than investing in larger and more established companies because small and medium capitalization companies can be subject to more abrupt or erratic share price changes than larger, more established companies. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. Short positions entered into by the Fund may involve higher risks and costs, and potential losses relating to such investments are not typically limited.
Definitions
Alpha: Measure of the excess (active) return of an investment relative to the return of a benchmark index.
S&P 500 Index: Market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. Indexes are unmanaged and it is not possible to invest directly in an index.
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Contacts:
Chris Sullivan, 212-473-4442
chris@macmillancom.com
