Guggenheim Investments announced plans to close and liquidate its Guggenheim Yuan Bond ETF (RMB). The last day of trading will be June 14, 2013 with its final liquidating distribution occurring on June 21. I encourage all shareholders to heed the warnings contained in Five Steps To Avoid Disaster When Your ETF Closes by selling your shares prior to the delisting.
RMB will begin liquidating its holdings on June 17, and its final liquidating NAV will be determined on June 20. Guggenheim’s press release announcing the closure of RMB (pdf) and its answers to frequently asked questions (pdf) reveal that any shareholders remaining after June 14 will bear the costs of closing the fund.
Additionally, between June 14 and June 20, “the fund will deviate from its investment objectives and strategies stated in its prospectus.” RMB is also suspending its June 1 dividend, so there is little reason to stick around any longer (please note that the Guggenheim literature refers to this as the May dividend).
Investors desiring access to Chinese “Dim Sum” bonds can do so via PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM). In my September 2011 analysis, RMB vs DSUM: Comparing the New Dim Sum Bond ETFs, I summarized my findings as follows:
“Investors desiring exposure to the Dim Sum market would appear to be better served by DSUM, the PowerShares offering. Its total market approach results in a yield more than twice that of RMB, while increasing duration less than one year and doing so for a lower fee.”
RMB joined ETF Deathwatch in April 2012 and had about $5 million in assets at the time. The fund had only $2.6 million at the end of April 2013.
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.