Auspice to close Canadian natural gas ETF

Jan 16th, 2018 | By | Category: Commodities

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Auspice Capital has announced that it will be terminating the Auspice Canadian Natural Gas Index ETF (GAS CN), which currently trades on the Toronto Stock Exchange.

Natural Gas Commodity ETFs

GAS, which was the first ETF to provide direct exposure to Canadian natural gas, will be de-listed on 20 March 2018.

The fund, which was the first fund to provide direct exposure to the price of Canadian natural gas, launched just over a year ago in October 2016.

It tracks the firm’s in-house Canadian Natural Gas Index, reflecting the returns that an investor would expect to see when holding and rolling US dollar-denominated 3-month futures contracts tied to Canadian natural gas.

By tracking 3-month futures contracts, compared to front-month futures contracts, transaction costs, as well as potentially the impact of negative roll yields, are reduced.

Until the ETF’s launch, there had not been a pure-play vehicle for investors outside the wholesale marketplace.

Despite being first to market, the fund has not been able to consistently attract investor interest, and AUM in the ETF currently sits at under $5 million.

The ETF will be de-listed as at the close of business on 20 March 2018, with all units still held by investors being subject to a mandatory redemption as of 23 March. Effective immediately, no further direct subscriptions for units of the ETF will be accepted.

Any remaining unitholders of the ETF as of this date will receive the net proceeds from the liquidation of the assets, less all liabilities and all expenses incurred in connection with the dissolution of the ETF, on a pro rata basis.

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