Global X ETFs Announces Reverse Share Splits for 5 ETFs
April 13 2020 - 5:30PM
Global X ETFs, the New York-based provider of exchange traded
funds, today announced that its Board of Trustees has approved
reverse share splits for five of its ETFs. The total market value
of the shares outstanding will not be affected as a result of this
split, except with respect to the redemption of fractional shares,
as outlined below.
The firm will execute the reverse split of the shares effective
at the open of the market on April 28, 2020. A summary of the
ETFs undergoing a reverse share split is as follows.
Fund Name |
Ticker |
CUSIP |
Ratio |
Global X MLP ETF |
MLPA |
37950E473 |
1:6 |
Global X MSCI Pakistan ETF |
PAK |
37950E689 |
1:4 |
Global X MSCI Colombia ETF |
GXG |
37950E200 |
1:4 |
Global X MSCI Greece ETF |
GREK |
37950E366 |
1:3 |
Global X MLP & Energy Infrastructure ETF |
MLPX |
37950E226 |
1:3 |
Please note the CUSIP changes, effective April 28th, 2020:
Fund Name |
Old CUSIP |
New CUSIP |
Global X MLP ETF |
37950E473 |
37954Y343 |
Global X MSCI Pakistan ETF |
37950E689 |
37954Y335 |
Global X MSCI Colombia ETF |
37950E200 |
37954Y327 |
Global X MSCI Greece ETF |
37950E366 |
37954Y319 |
Global X MLP & Energy Infrastructure ETF |
37950E226 |
37954Y293 |
The reverse split will raise the price of the shares for the
fund and decrease the number of shares outstanding, without
affecting the total value of the shares outstanding.
Hypothetical example of a 1-for-4 reverse split:
Period |
Number of Shares Owned |
Hypothetical Market Price/Share ($U.S.) |
Total Value ($U.S.) |
Pre- split |
400 |
$100 |
$4,000 |
Post- split |
100 |
$400 |
$4,000 |
Redemption of Fractional Shares and Tax Consequences for
Each Reverse Split
As a result of the reverse splits, a shareholder of the ETF
could potentially hold a fractional share. However, fractional
shares cannot trade on NYSE Arca. Thus, each ETF will redeem for
cash a shareholders' fractional shares at the Fund's split-adjusted
NAV. Such redemptions could cause a shareholder to realize a gain
or loss. Otherwise, the reverse splits will not result in a taxable
transaction for holders of ETF shares. Global X Management Company
LLC does not impose a transaction fee on shareholders for such
redemptions.
Brokerage Charges
Some brokerage charges may apply as a result of the reverse
split. These charges are made directly by the broker and are not
charges from Global X Management Company LLC.
ABOUT GLOBAL X
Global X was founded in 2008 with the mission of
listening to and empowering clients to invest wisely in unexplored
and intelligent solutions. Our product lineup features more than 70
ETF strategies, and is supported by in-depth, openly available
Research & Insights, along with professionally constructed ETF
Model Portfolios and Practice Management Tools designed to support
financial advisors. While we are distinguished for our Thematic
Growth, Income and International Access ETFs, we also offer Core,
Commodity, and Alpha funds to suit a wide range of investment
objectives. Global X is a member of Mirae Asset Global Investments
Group, a Seoul-based global enterprise which offers asset
management expertise worldwide. Explore our ETFs and more at
www.globalxetfs.com.
Media Contact:
Frank Taylor / Stephanie DresslerDukas Linden
Public Relationsfrank@dlpr.com / stephanie@dlpr.com(646) 808-3647 /
(949) 269-2535
Disclosures:
Investing involves risk, including the possible
loss of principal. Investments in securities of MLPs involve risk
that differ from investments in common stock including risks
related to limited control and limited rights to vote on matters
affecting the MLP. The funds are non-diversified.
International investments may involve risk of
capital loss from unfavorable fluctuation in currency values, from
differences in generally accepted accounting principles, or from
economic or political instability in other nations. Securities
focusing on a single country maybe subject to higher volatility.
Investments in small and mid-capitalization companies pose greater
risks than large companies. Certain economies in the Middle East
depend to a significant degree upon exports of primary commodities
such as oil.
Shares of ETFs are bought and sold at market
price (not NAV) and are not individually redeemed from the Fund.
Brokerage commissions will reduce returns. Global X NAVs are
calculated using prices as of 4:00 PM Eastern Time. The closing
price is the Mid-Point between the Bid and Ask price as of the
close of exchange. Closing price returns do not represent the
returns you would receive if you traded shares at other times.
Carefully consider the Fund’s investment
objectives, risks, and charges and expenses before investing. This
and other information can be found in the Fund’s summary or full
prospectuses, which may be obtained by calling 1-888-493-8631 or by
visiting globalxetfs.com. Please read the prospectus carefully
before investing.
Global X Management Company LLC serves as an
advisor to Global X Funds. The Funds are distributed by SEI
Investments Distribution Co. (SIDCO), which is not affiliated with
Global X Management Company LLC or Mirae Asset Global
Investments.
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