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Wednesday 08 July, 2020

WT Issuer ICAV

Shareholder Notification

RNS Number : 4275S
WisdomTree Issuer ICAV
08 July 2020
 

 

 

 

NOTICE OF

COMPULSORY REDEMPTIONS

OF

WISDOMTREE CBOE S&P 500 PUTWRITE UCITS ETF

WISDOMTREE EMERGING ASIA EQUITY INCOME UCITS ETF

WISDOMTREE GERMANY EQUITY UCITS ETF

WISDOMTREE INDIA QUALITY UCITS ETF

WISDOMTREE ISEQ 20 UCITS ETF

WISDOMTREE JAPAN SMALLCAP DIVIDEND UCITS ETF

WISDOMTREE US MULTIFACTOR UCITS ETF

WISDOMTREE US SMALLCAP DIVIDEND UCITS ETF

(the "Closing Funds")

SUB-FUNDS

WISDOMTREE ISSUER ICAV

(the"ICAV")

 

_________________________________________________________________________________

 

 

THIS SHAREHOLDER LETTER IS SENT TO YOU AS A SHAREHOLDER IN WISDOMTREE ISSUER ICAV. IT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF YOU ARE IN ANY DOUBT AS TO THE ACTION TO BE TAKEN, YOU SHOULD IMMEDIATELY CONSULT YOUR STOCKBROKER, BANK MANAGER, SOLICITOR OR ATTORNEY OR OTHER PROFESSIONAL ADVISOR.

 

 

If you have transferred your holding in the ICAV, please send this document to the stockbroker, bank manager or other agent through whom the transfer was effected for transmission to the transferee.

 

Terms used in this shareholder letter and not otherwise defined bear the same meanings as where used in the prospectus of the ICAV dated 6 May 2020 available from WisdomTree's website at the following link: https://www.wisdomtree.eu/en-gb/-/media/eu-media-files/key-documents/prospectus/wt/prospectus-wisdomtree.pdf.

 

 

 

 

 

 

 

 

Dated 8 July 2020

 

 

 

 

 

 

8 July 2020

 

 

To:   All shareholders in the Closing funds

 

NOTICE OF COMPULSORY REDEMPTIONS AND FUND CLOSURES

 

Dear Shareholder,

 

1.  Background

 

WisdomTree ("WisdomTree") continuously reviews its product set to ensure that all of its products are compelling and differentiated investment offerings within the current exchange traded fund landscape. As a result of a comprehensive review, and after carefully evaluating factors such as market demand and competitive positioning, WisdomTree has identified certain sub-funds of the ICAV which have not gathered significant turnover or demand from investors and is therefore closing these funds in order to better serve products which have enjoyed more traction and make room for more relevant innovation going forward.

This announcement is being made 2 months ahead of the Compulsory Redemption Date (as defined below) to give investors sufficient time to make their investment decisions. During this time, we are dedicated to ensuring the process around the closure of these products is seamless for our investors.

The ICAV wishes to notify shareholders of compulsory redemptions of all share classes of the Closing Funds, the details of which are set out below.

 

2.  Compulsory Redemption

 

Notice of Compulsory Redemption

 

The ICAV gives notice, pursuant to paragraph 10.1.7 of the ICAV's Instrument of Incorporation (the "Instrument"), that all of the shares (the "Redeeming Shares") in all the share classes of the Closing Funds (as set out at Appendix 1), are to be compulsorily redeemed and that the ICAV has nominated 8 September 2020 to be the compulsory redemption date for all share classes of the Closing Funds except for WisdomTree CBOE S&P 500 PutWrite UCITS ETF, in respect of which the ICAV has nominated 11 September 2020 to be the compulsory redemption date (the "Compulsory Redemption Dates"). The ICAV will give further notice after the Compulsory Redemption Dates of the redemption proceeds payable to shareholders.

Application has been made for the Closing Funds to be removed from the Official List and from trading on the regulated market of Euronext Dublin and Euronext Dublin has agreed that the Shares of the Sub-Fund will be delisted with effect from the relevant Compulsory Redemption Date.

Deviation from Investment Policy

The ICAV may need to sell off some of the underlying assets in the Closing Funds in the days leading up to the relevant Compulsory Redemption Date to ensure an efficient liquidation of the underlying assets.  This could result in the relevant Closing Fund no longer tracking the index as per its investment policy, and may impact the tracking error of the relevant Closing Fund between the last trading day on exchange and the relevant Compulsory Redemption Date.

For Authorised Participants

 

For authorised participants that have entered into authorised participant agreements with the ICAV, redemption requests received (or deemed received) prior to the dealing deadlines for the relevant Closing Fund on 4 September 2020 will be valid and will be processed in the normal way. Redemption requests received (or deemed received) after that day will be invalid. Any Redeeming Shares then remaining in issue will be compulsorily redeemed in accordance with the Prospectus and the relevant Supplement.

 

For all Shareholders and End Investors

 

For all shareholders on the register and underlying investors ("End Investors"), it is expected that the Redeeming Shares will stop trading on their respective exchanges after the close of trading on or around 1 September 2020. If you wish to sell your Redeeming Shares before the compulsory redemption, you should do so by the close of trading on this date.

 

Please note that there will be a gap between the last trading day on exchange and the relevant Compulsory Redemption Date.  There will also be a further gap between the relevant Compulsory Redemption Date and the payment of the redemption proceeds to shareholders whilst these payments are processed.  End Investors are therefore strongly advised to contact their advisors and brokers if they wish to sell their Redeeming Shares in advance of the last trading day on exchange in order to avoid being part of the compulsory redemption process.

 

Actions to be taken

 

On or prior to 1 September 2020, being the expected last day where trading on exchange will be possible, End Investors can take two actions:

1.  Sell their Redeeming Shares in advance of the last trading day on exchange either independently or by contacting their broker or financial advisor; or

2.  Do nothing and be part of the compulsory redemption process and receive payment on the redemption of your Redeeming Shares as outlined below.

 

Payment of redemption proceeds

It is expected that the redemption proceeds in respect of the compulsory redemption of each of the Redeeming Shares will sent on or around 15 September 2020 to Citibank Europe plc (the "Common Depositary") or its nominee. Through an automated process, the Common Depositary will instruct onward payments which will pass through nominees to the End Investors. The Common Depositary will make this payment on or around 17 September 2020. Such payments will be made in the relevant share class currency as set out in Appendix 1.

 

End Investors who are not named on the register of Shareholders which is maintained on behalf of the ICAV, will receive the proceeds of the compulsory redemption from their intermediary/broker.  There may be delays in these payments reaching End Investors and they are advised to contact their brokers or financial advisers for more information.

 

3.  Further information

 

For further information on the compulsory redemption please refer to the Compulsory Redemption Q&A included in Appendix 2 or contact WisdomTree UK Limited at [email protected].

 

Yours faithfully

 

 

 

 

_______________________________

Director

For and on behalf of

WisdomTree Issuer ICAV

 

 

APPENDIX 1

LIST OF CLOSING FUNDS AND THE REDEEMING SHARES

 

 

Closing Fund

Redeeming Share Class

ISIN

WKN

Exchange

Share Class
Currency

WisdomTree CBOE S&P 500 PutWrite UCITS ETF

WisdomTree CBOE S&P 500 PutWrite UCITS ETF - USD Acc

IE00BD49R243

A2JD97

London Stock Exchange

USD

London Stock Exchange

USD

Borsa Italiana

USD

SIX Swiss Exchange

USD

DE000A2JEFE8*

A2JEFE*

Xetra

USD

WisdomTree Emerging Asia Equity Income UCITS ETF

WisdomTree Emerging Asia Equity Income UCITS ETF

IE00BYPGT035

A14YT0

London Stock Exchange

USD

London Stock Exchange

USD

Borsa Italiana

USD

SIX Swiss Exchange

USD

DE000A140SG3*

A14SG*

Xetra

USD

WisdomTree Germany Equity UCITS ETF

WisdomTree Germany Equity UCITS ETF - CHF Hedged Acc

IE00BYQCZ914

A2AB70

SIX Swiss Exchange

CHF

 

WisdomTree Germany Equity UCITS ETF - EUR Acc

IE00BYQCZC44

A1403B

London Stock Exchange

EUR

London Stock Exchange

EUR

Borsa Italiana

EUR

SIX Swiss Exchange

EUR

DE000A142K45*

A142K4*

Xetra

EUR

WisdomTree Germany Equity UCITS ETF - GBP Hedged

IE00BVXBGY20

A14WBU

London Stock Exchange

GBP

 

SIX Swiss Exchange

GBP

WisdomTree Germany Equity UCITS ETF - USD Hedged

IE00BYQCZ682

A143HY

London Stock Exchange

USD

USD

IE00BYQCZ682

A143HY

SIX Swiss Exchange

USD

WisdomTree India Quality UCITS ETF

WisdomTree India Quality UCITS ETF - USD

IE00BDGSNK96

A2DJN0

London Stock Exchange

USD

DE000A2DJWH8*

A2DJWH*

Xetra

USD

WisdomTree India Quality UCITS ETF - USD Acc

IE00BDGSNL04

A2DJN1

London Stock Exchange

USD

Borsa Italiana

USD

DE000A2DJWJ4*

A2DJWJ*

Xetra

USD

WisdomTree ISEQ 20 UCITS ETF

WisdomTree ISEQ 20 UCITS ETF

IE00BVFB1H83

A14Q0H

London Stock Exchange

EUR

London Stock Exchange

EUR

Euronext Dublin

EUR

WisdomTree Japan SmallCap Dividend UCITS ETF

WisdomTree Japan SmallCap Dividend UCITS ETF - USD

IE00BFXYK923

A2N4QZ

London Stock Exchange

USD

Borsa Italiana

USD

WisdomTree Japan SmallCap Dividend UCITS ETF - USD Acc

IE00BFXYKD63

A2PABQ

London Stock Exchange

USD

Borsa Italiana

USD

WisdomTree US Multifactor UCITS ETF

WisdomTree US Multifactor UCITS ETF - USD

IE00BD8ZCY59

A2PABL

London Stock Exchange

USD

Borsa Italiana

USD

WisdomTree US Multifactor UCITS ETF - USD Acc

IE00BD8ZD313

A2PABM

London Stock Exchange

USD

Borsa Italiana

USD

WisdomTree US SmallCap Dividend UCITS ETF

WisdomTree US SmallCap Dividend UCITS ETF

IE00BQZJBT94

A12HUW

London Stock Exchange

USD

London Stock Exchange

USD

Borsa Italiana

USD

SIX Swiss Exchange

USD

DE000A14ND20*

A14ND2*

Xetra

USD

* Please note that DE ISINs and German WKNs will be migrated to the IE ISINs and Irish WKNs set out above in connection to the ICSD transition on or around the 10 August 2020, and they will no longer be in existence by the compulsory redemption date.

 

 

 

APPENDIX 2

Compulsory Redemption Q&A

 

EUROPEAN EXCHANGE TRADED FUNDS TO BE COMPULSORY REDEEMED

 

 

WisdomTree Issuer ICAV (WisdomTree) has announced that it will be compulsorily redeeming 8 Exchange Traded Funds ("ETFs") from its UCITS platform on the compulsory redemption dates referenced below. This means that the ETFs being closed, which are listed below, and their underlying share classes will terminate and be compulsorily redeemed on this date.

 

1.  WHICH PRODUCTS WILL BE CLOSING AND WHEN?

 

This announcement impacts the following 8 UCITs ETFs only:

 

Product

Compulsory Redemption Date

 

WisdomTree Emerging Asia Equity Income UCITS ETF

 

8th September 2020

 

WisdomTree Germany Equity UCITS ETF

 

8th September 2020

 

WisdomTree India Quality UCITS ETF

 

8th September 2020

 

WisdomTree Japan SmallCap Dividend UCITS ETF

 

8th September 2020

 

WisdomTree ISEQ 20 UCITS ETF

 

8th September 2020

 

WisdomTree US Multifactor UCITS ETF

 

8th September 2020

 

WisdomTree US Small Cap Dividend UCITS ETF

 

8th September 2020

 

WisdomTree CBOE S&P 500 PutWrite UCITS ETF

 

11th September 2020

 

The full share class listings of these products can be found later in the document.

 

 

 

2.  WHAT ARE THE KEY DATES AND STAGES FOR THE UCITS ETF CLOSURES?

 

Here are the key dates and steps for the closing down of the UCITS ETFs. Please note that the ETFs will continue to price daily until the Compulsory Redemption Date (as defined in the table above).  Please refer to Q.8 for details on each stage of the timeline.

 

TIMELINE

 

PROCESS STEPS

Tuesday 1 September 2020

 

Last day of trading on relevant Stock Exchanges

(All investors)

Thursday 3 September 2020

 

Last trading day for Creations

(Authorised Participants only)

Friday 4 September 2020

 

Last trading day for Redemptions

(Authorised Participants only)

Tuesday 8 September 2020

 

Compulsory redemption date

(ETFs in scope ex-PUTW)

Friday 11 September 2020

 

Compulsory redemption date

(PUTW only)

Monday 14 September 2020

 

Record Date for Shareholders and Final Price Announcement

Thursday 17 September 2020

 

Compulsory redemption payment date to Shareholders

 

 

 

3.  WHY IS THIS HAPPENING?

 

WisdomTree continuously reviews its product set to ensure that it provides compelling and differentiated investment offerings within the current ETP landscape. As a result of a comprehensive review and after carefully evaluating factors like the investor's best interests, market demand and competitive positioning, WisdomTree has identified funds which have not gathered enough investment or demand from investors and which are expensive to run; therefore, it is carrying out these fund closures to better serve products which have enjoyed more traction and make room for more relevant innovation going forward.

 

The announcement has been made with 2 months' notice of the effective closure date to give investors as long as possible to make their investment decisions. During this time, we are dedicated to ensuring the process around the closure of these products is seamless for our investors.

 

 

4.  DOES THIS IMPACT OTHER WISDOMTREE ETFs?

 

No. The closing of the funds only impacts the 8 ETFs listed above

 

 

 

 

5.  ARE YOU LOOKING AT CLOSING MORE ETFs?

 

No. WisdomTree is not planning to close more ETFs.  As mentioned, WisdomTree continuously reviews its product set to ensure that it provides compelling and differentiated investment offerings

 

WisdomTree will continue to offer one of the most comprehensive product sets in Europe with 233 products available across commodities, equities, foreign exchange, fixed income, digital assets and alternatives, after this process has completed.

 

A range of our other products available can be found by accessing this link: www.wisdomtree.eu

 

 

6.  IF I AM INVESTED IN AN ETF THAT IS CLOSING, WHAT DO I NEED TO DO?

 

Please note that the ETFs, which are due to close, will stop trading on their respective exchanges after the close of trading on or around 01 September 2020. This is necessary to help the ETFs wind down in an orderly way,

 

Investors have 2 options:

(i)  Investors can sell their positions prior to the last exchange trading day on 1 September 2020; or

(ii)  Investors can wait until the compulsory redemption takes effect on the compulsory redemption dates and they will receive their proceeds on or after 17 September 2020

 

Please note only investors capable of trading off-exchange (also known as, Over The Counter) will be able to sell their positions between the 1 September and 4 September 2020. 

 

Please see the timeline and key stages in Q2 and the process outlined in more detail in Q.8.

 

 

7.  IF I AM INVESTED IN AN ETF THAT IS CLOSING AND I DON'T DO ANYTHING, WHAT HAPPENS?

 

Following the close of trading on exchange on or around 1st September 2020, any remaining investors will automatically be part of the compulsory redemption process.  Please note that there will be a gap between the last trading date on exchange and the compulsory redemption date or FINAL NAV date which might mean there is a difference in the final NAV and the NAV of 1st September 2020.

 

There will also be a further gap between the compulsory redemption date and the payment date when beneficial shareholders will receive the cash payments in respect of their ETFs.

 

If you are holding affected ETF(s) through an intermediary or broker, it could take longer for the cash payments to be paid to you and your broker may apply additional fees.  Please contact your intermediary or broker to discuss this. 

 

 

8.  WHAT SHOULD I EXPECT TO HAPPEN IN THE PROCESS OF CLOSING DOWN AN ETF?

 

The following timeline can provide additional detail about the process and what investors should expect at each stage.

 

8th July 2020

The date of the announcement notifying investors of the expected product closures. The notice period between the date of the announcement and the date of closure is intended to allow investors flexibility in managing their position.

 

We encourage investors to sell their shares in the ETFs listed for closure prior to 1st  September 2020, being the date on which these ETFs are expected to stop trading on their respective exchanges. Alternatively, investors may stay invested in the products and see them compulsory redeemed on or around 8th September 2020 through the process described below.

 

1st September 2020

This is the last day of exchange trading for the ETFs listed for closure as they will be delisted at the close of business. After 1st September 2020, investors will no longer be able to buy or sell the products on exchange. Please note, from the 2nd September 2020 to 4th September 2020, it may still be possible in some circumstances to trade out of your position "over-the-counter" (OTC) by contacting your broker or trading platform.

 

4th September 2020

This is the last day that the ETFs for closure will accept redemptions. After this date, any investor holdings will be subject to the compulsory redemption.

 

8th September and 11th September 2020

As set out in Q2 above, these are the compulsory redemption dates and the dates at which the ETFs for closing will be valued for the final time and redeemed. The final value of investor's holdings will be based upon the price ("NAV") of the products which are closing as of the close of this date.  WisdomTree will be communicating the final NAV of the ETFs for closing on or around 14th September.  Investors will be able to find all FINAL NAVs published on the WisdomTree website www.wisdomtree.eu by looking up the relevant ETF.  An updated table with final prices will also be published.

 

 17th September 2020

This is the date on which the Issuer expects to make all payments to shareholders as per the record date of 14th September 2020.  Payments will be made in the relevant share class currency of the ETF. Please refer to the product table on the back page for more information.

 

To the extent that you hold the products which are closing through a broker, custodian or other intermediary, please contact that intermediary for information on how they will pass on the payments. Typically, you should expect to receive the payment in much the same way you receive a dividend, a coupon on a bond or the payment of principle when the bond matures. It may take longer for the payment to find its way to your account if you hold the share through a broker or a nominee account of another kind and your broker may apply additional fees.

 

We strongly recommend that investors contact their broker, bank or financial adviser who will be able to provide further information regarding how this process will work for you.

 

 

9.  WHY IS THERE A GAP BETWEEN THE LAST EXCHANGE TRADING DAY AND THE COMPULSORY REDEMPTION DATE?

 

The reason why the secondary market trading has been suspended around 5 days ahead of the closures is because the secondary market is made up of many participants and the trades can flow through numerous investment intermediaries who are trading on various exchanges and market venues. As the ETF trading ecosystem is subject to various levels of intermediation, this can result in a time lag between an end investor trading an ETF and that ETF position being reflected in the accounts of the various settlement systems. To ensure that the correct beneficial owner receives the proceeds from the ETFs which are closing, we have built in sufficient time for this settlement to happen.

 

 

10.  WHY ARE THERE 2 DIFFERENT CLOSING DATES?

 

The products are split across 2 different investment managers, so having two different closure dates ensures the process is managed in the most orderly way.

 

 

11.  IF I AM THE LAST INVESTOR IN THE ETFs BEFORE CLOSE, WILL I INCUR ADDITIONAL COSTS?

No. There are no additional costs charged by WisdomTree and borne by the investor due to the ETF closures.

 

 

12.  YOU ANNOUNCED TRANSITION TO ICSD SETTLEMENT MODEL, WILL THIS IMPACT THE ETFs WHICH ARE IN SCOPE FOR THE COMPLUSORY REDEMPTION?

No. The issuer will transition to the ICSD settlement model as expected. The 8 ETFs will then be compulsory redeemed as per the announcement.

 

 

13.  WILL THE ETFs DEVIATE FROM THE BENCHMARK DURING LIQUIDATION?

The investment managers may need to sell off some of the funds underlying equity holdings in the days leading up to the final NAV date to ensure efficient liquidation of the portfolios.  This could result in the fund no longer tracking the index as per its investment objective and can cause additional tracking.  This is only expected to occur in the few days ahead of the final NAV date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIST OF ETFs TO BE COMPULSORY REDEEMED

Product Name

ISIN

WKN

Shareclass Currency

Exchange

Ticker

WisdomTree CBOE S&P 500 PutWrite UCITS ETF - USD Acc

IE00BD49R243

A2JD97

USD

London Stock Exchange

PUTW LN

London Stock Exchange

PUTS LN

Borsa Italiana

PUTW IM

SIX Swiss Exchange

PUTW SW

DE000A2JEFE8*

A2JEFE*

USD

Xetra

WTDB GY

WisdomTree Emerging Asia Equity Income UCITS ETF

IE00BYPGT035

A14YT0

USD

London Stock Exchange

DEMA LN

London Stock Exchange

DEMP LN

Borsa Italiana

DEMA IM

SIX Swiss Exchange

DEMA SW

DE000A140SG3*

A14SG*

USD

Xetra

WTEA GY

WisdomTree Germany Equity UCITS ETF - CHF Hedged Acc

IE00BYQCZ914

A2AB70

CHF

SIX Swiss Exchange

DXGD SW

WisdomTree Germany Equity UCITS ETF - EUR Acc

IE00BYQCZC44

A1403B

EUR

London Stock Exchange

DXGY LN

London Stock Exchange

DXGZ LN

Borsa Italiana

DXGY IM

SIX Swiss Exchange

DXGY SW

DE000A142K45*

A142K4*

EUR

Xetra

WTEZ GY

WisdomTree Germany Equity UCITS ETF - GBP Hedged

IE00BVXBGY20

A14WBU

GBP

London Stock Exchange

DXGP LN

SIX Swiss Exchange

DXGP SW

WisdomTree Germany Equity UCITS ETF - USD Hedged

IE00BYQCZ682

A143HY

USD

London Stock Exchange

DXGE LN

DXGG LN

IE00BYQCZ682

A143HY

USD

SIX Swiss Exchange

DXGE SW

WisdomTree India Quality UCITS ETF - USD

IE00BDGSNK96

A2DJN0

USD

London Stock Exchange

EPIQ LN

DE000A2DJWH8*

A2DJWH*

USD

Xetra

WTDZ GY

WisdomTree India Quality UCITS ETF - USD Acc

IE00BDGSNL04

A2DJN1

USD

London Stock Exchange

EPIE LN

Borsa Italiana

EPIE IM

DE000A2DJWJ4*

A2DJWJ*

USD

Xetra

WTD0 GY

WisdomTree ISEQ 20 UCITS ETF

IE00BVFB1H83

A14Q0H

EUR

London Stock Exchange

ISQE LN

London Stock Exchange

ISEQ LN

Euronext Dublin

WTIE ID

WisdomTree Japan SmallCap Dividend UCITS ETF - USD

IE00BFXYK923

A2N4QZ

USD

London Stock Exchange

DFJ LN

Borsa Italiana

DFJ IM

WisdomTree Japan SmallCap Dividend UCITS ETF - USD Acc

IE00BFXYKD63

A2PABQ

USD

London Stock Exchange

DFJA LN

Borsa Italiana

DFJA IM

WisdomTree US Multifactor UCITS ETF - USD

IE00BD8ZCY59

A2PABL

USD

London Stock Exchange

USMF LN

Borsa Italiana

USMF IM

WisdomTree US Multifactor UCITS ETF - USD Acc

IE00BD8ZD313

A2PABM

USD

London Stock Exchange

FCTR LN

Borsa Italiana

FCTR IM

WisdomTree US SmallCap Dividend UCITS ETF

IE00BQZJBT94

A12HUW

USD

London Stock Exchange

DESD LN

London Stock Exchange

DESE LN

Borsa Italiana

DESE IM

SIX Swiss Exchange

DESE SW

DE000A14ND20*

A14ND2*

USD

Xetra

WTEC GY

* Please note that DE ISINs and German WKNs will be migrated to the IE ISINs and Irish WKNs set out above in connection to the ICSD transition on or around the 10 August 2020, and they will no longer be in existence by the compulsory redemption date.

 

This announcement has been issued through the Companies Announcement Service of Euronext Dublin.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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