Ivy NextShares Announces Distributions
10 September 2019 - 7:53AM
Business Wire
Ivy Investment Management Co. today announced annual
distributions for its three Ivy NextShares exchange-traded managed
funds. The distribution schedule and amounts for Ivy Focused
Energy NextShares, Ivy Focused Growth NextShares and
Ivy Focused Value NextShares are as follows:
Ex-Date
Record
Date
Payable
Date
Sept. 10, 2019
Sept. 11, 2019
Sept. 20, 2019
Ivy
Focused Energy NextShares (IVENC)
Investment
Income
Short-Term
Capital Gains
Long-Term
Capital Gains
$0.074 per share
None
None
Ivy Focused Growth
NextShares (IVFGC)
Investment
Income
Short-Term
Capital Gains
Long-Term
Capital Gains
$0.102 per share
$1.458 per share
$11.216 per share
Ivy Focused Value
NextShares (IVFVC)
Investment
Income
Short-Term
Capital Gains
Long-Term
Capital Gains
$0.287 per share
None
None
The distributions are expected to be paid from net investment
income (regular interest and dividends). The final tax status of
the distributions may differ substantially from this preliminary
information, which is based on estimates, and the final
determination of such amount will be made in early 2020.
On August 15, 2019, Ivy Investment Management Co. announced
plans to delist from Nasdaq and liquidate Ivy Focused Energy
NextShares, Ivy Focused Growth NextShares and Ivy Focused Value
NextShares.
The last day of secondary market trading on Nasdaq in the Funds’
shares is expected to be Sept. 9, 2019. Final redemptions will be
executed on Sept. 9, 2019. Each Fund will liquidate its assets, and
final redemptions are expected to be processed, and cash is
expected to be distributed pro rata to all remaining shareholders,
on or about Sept. 20, 2019. Shareholders should contact their tax
advisors to discuss the income tax consequences of a
liquidation.
Shares of NextShares funds are normally bought and sold in the
secondary market through a broker, and may not be individually
purchased or redeemed from the fund. In the secondary market,
buyers and sellers transact with each other, rather than with the
fund. NextShares funds issue and redeem shares only in specified
creation unit quantities in transactions by or through Authorized
Participants. In such transactions, a fund issues and redeems
shares in exchange for the basket of securities, other instruments
and/or cash that the fund specifies each business day. By
transacting in kind, a NextShares fund can lower its trading costs
and enhance fund tax efficiency by avoiding forced sales of
securities to meet redemptions. Redemptions may be affected
partially or entirely in cash when in-kind delivery is not
practicable or deemed not in the best interests of shareholders. A
fund’s basket is not intended to be representative of the fund’s
current portfolio positions and may vary significantly from current
positions. As exchange-traded securities, NextShares can operate
with low transfer agency expenses by utilizing the same highly
efficient share processing system as used for exchange-listed
stocks and ETFs.
Market trading prices of NextShares are linked to the fund’s
next-computed net asset value (NAV) and will vary from NAV by a
market-determined premium or discount, which may be zero. Buyers
and sellers of NextShares will not know the value of their
purchases and sales until after the fund’s NAV is determined at the
end of the trading day. Market trading prices may vary
significantly from anticipated levels. NextShares do not offer
investors the opportunity to buy and sell intraday based on current
(versus end-of-day) determinations of fund value. NextShares trade
execution prices will fluctuate based on changes in NAV. Although
limit orders may be used to control trading costs, they cannot be
used to control or limit trade execution prices. As a new type of
fund, NextShares have a limited operating history and may initially
be available through a limited number of brokers. There can be no
guarantee that an active trading market for NextShares will develop
or be maintained, or that their listing will continue unchanged.
Buying and selling NextShares may require payment of brokerage
commissions and expose transacting shareholders to other trading
costs. Frequent trading may detract from realized investment
returns. The return on a shareholder’s NextShares investment will
be reduced if the shareholder sells shares at a greater discount or
narrower premium to NAV than he or she acquired the shares.
Risk factors: The value of the Fund’s shares will change,
and you could lose money on your investment. An investment in the
Fund is not a bank deposit and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. Ivy Focused Energy NextShares: Investing in
companies involved in one specified sector may be more risky and
volatile than an investment with greater diversification. Investing
in the energy sector can be riskier than other types of investment
activities because of a range of factors, including price
fluctuation caused by real and perceived inflationary trends and
political developments, and the cost assumed by energy companies in
complying with environmental safety regulations. These and other
risks are more fully described in the Fund’s prospectus. Ivy
Focused Growth NextShares: Investing in companies involved
primarily in a single asset class (large cap) may be more risky and
volatile than an investment with greater diversification. Not all
funds or fund classes may be offered at all broker/dealers. These
and other risks are more fully described in the Fund’s prospectus.
Ivy Focused Value NextShares: The value of a security
believed by the Fund’s manager to be undervalued may never reach
what the manager believes to be its full value, or such security’s
value may decrease. Investing in companies in anticipation of a
catalyst carries the risk that certain of such catalysts may not
happen or the market may react differently than expected to such
catalysts, in which case the Fund may experience losses. The
securities of many companies may have significant exposure to
foreign markets as a result of the company’s operations, products
or services in those foreign markets. As a result, a company’s
domicile and/or the markets in which the company’s securities trade
may not be fully reflective of its sources of revenue. Such
securities would be subject to some of the same risks as an
investment in foreign securities, including the risk that political
and economic events unique to a country or region will adversely
affect those markets in which the company’s products or services
are sold. These and other risks are more fully described in the
Fund’s prospectus.
NextShares™ is a trademark of NextShares Solutions LLC. All
rights reserved. Used with permission.
Ivy NextShares funds are managed by Ivy Investment Management
Company and are distributed by ALPS Distributors, Inc.
ALPS Distributors, Inc., NextShares Solutions LLC, and Ivy
Investment Management Company or Ivy Distributors, Inc. (or their
affiliates), are all unaffiliated companies.
Past performance is not a guarantee of future results and future
distributions may be different. This or future distributions may
also be paid from net realized gains from portfolio investments,
unrealized gains, or in certain cases, a return of principal
(non-taxable distributions).
IVY INVESTMENTS® refers to the investment management and
investment advisory services offered by Ivy Investment Management
Company, the financial services offered by Ivy Distributors, Inc.,
a FINRA member broker dealer and the distributor of IVY FUNDS®
mutual funds and IVY VARIABLE INSURANCE PORTFOLIOSSM, and the
financial services offered by their affiliates.
Before investing, investors should consider carefully the
investment objectives, risks, charges and expenses of an Ivy
NextShares exchange-traded managed fund. This and other important
information is contained in the prospectus and summary prospectus,
which may be obtained at www.ivyinvestments.com or from a financial
advisor. Read it carefully before investing.
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Mike Daley Vice President – Corporate Controller & Investor
Relations (913) 236-1795
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