Old Mutual Global Index Trackers (OMGxT), a South Africa-based index tracker asset manager, announced today that the Board of Trustees of Old Mutual Global Shares Trust has approved the closure of all five of its U.S. exchange-traded funds (ETFs), with trading suspended prior to the market opening on October 6, 2010.
The ETFs to be closed are: GlobalShares FTSE All-World Fund (NYSE:GSW); GlobalShares FTSE Emerging Markets Fund (NYSE:GSR); GlobalShares FTSE All-Cap Asia Pacific ex Japan Fund (NYSE:GSZ); GlobalShares FTSE All-World ex US Fund (NYSE:GSO); and GlobalShares FTSE Developed Countries ex US Fund (NYSE:GSD). Shareholders in these funds will receive the net asset value of their shares as of October 8, 2010.
Old Mutual Global Index Trackers is one of several boutiques within Old Mutual Investment Group South Africa, a subsidiary of Old Mutual plc, a FTSE100 company with a primary listing on the London Stock Exchange. Closure of the ETFs has no impact on the other asset management businesses of Old Mutual plc, including Old Mutual Asset Management and Old Mutual Capital in the United States.
Tendai Musikavanhu, CEO of OMGxT, commented: “The U.S. ETF market was a new distribution channel for our well-established South African indexation business. Given the structure of the U.S. ETF market and prolonged volatile market, we’ve decided that it’s unlikely our products will gain sufficient market share in the United States. We will continue using our core business of segregated account index management as a springboard for growth into other distribution channels and markets.”
About Old Mutual Global Index Trackers
Old Mutual Global Index Trackers (Pty) Ltd (OMGxT) is a South Africa-based asset management business specializing in index tracking, with offices in Boston and London. The firm was established in 2001 and Old Mutual became the majority shareholder in 2006. It is now one of several specialist boutiques within Old Mutual Investment Group South Africa, a subsidiary of Old Mutual plc.
About Old Mutual plc
Old Mutual plc is a leading international long-term savings group. Originating in South Africa in 1845, the group provides life assurance, asset management, banking and general insurance in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London Stock Exchange and the JSE, among others. In the year ended December 31st, 2008, the Group reported adjusted operating profit of $1.5 billion (on an IFRS basis) and had $387 billion of funds under management at year-end. The group has approximately 55,000 employees worldwide. Its subsidiaries in the U.S. include Old Mutual Asset Management and Old Mutual Capital.
Foreside Fund Services, LLC, distributor for GlobalShares ETFs
CONTACT: Old Mutual Global Index Trackers US: Fund- and OMGxT-related inquiries: 1-888-OMGXTUS (1-888-6649887) Tendai Musikavanhu, CEO +1 (857) 284-1507 [email protected] OMGxT in South Africa: Fund- and OMGxT-related inquiries: Craig Chambers, Managing Director +27 (011) 562-6000 [email protected] Old Mutual Investment Group SA: Fund- and OMGxT-related inquiries: Lynn Bolin, Head of Media and Communications +27 (021) 509-5667 [email protected] Old Mutual Asset Management Inquiries: Chris Herman, Head of Product and Marketing +1 (617) 369-7306 [email protected] Old Mutual plc Inquiries: Patrick Bowes, Head of external relations +44 (207) 002-7044 [email protected]