With little warning, the three ELEMENTS Ben Graham ETNs have been called for immediate redemption. Today (8/25/11) is the last day of trading, although their redemption values have already been defined. The NYSE was notified just yesterday (8/24/11) that the exchange-traded notes, issued by Deutsche Bank, were called for redemption effective August 26, 2011. ELEMENTS brand ETNs from other issuers appear to not be affected at this time.
The three liquidating ETNs and their redemption values are:
- ELEMENTS Benjamin Graham Total Market Value Index-Total Return ETN (NYSE:BVT) $11.6623
- ELEMENTS Benjamin Graham Large Cap Value Index-Total Return ETN (NYSE:BVL) $10.7893
- ELEMENTS Benjamin Graham Small Cap Value Index-Total Return ETN (NYSE:BSC) $11.6023
These three ETNs have been headliners on ETF Deathwatch every month for more than two years. The closures should not come as a surprise to anyone. The only possible surprise is that it took so long to finally come about. At the end of last month, the three products had total combined assets of about $5.5 million, with the majority residing in BVT.
According to the press release on the ELEMENTS website dated August 22, holders of the ETNs as of August 23, 2011, will receive a cash payment in an amount equal to the redemption values listed above. The payment is expected to be made on August 26, 2011. For anyone acquiring shares yesterday or today, the value to be received is not clear.
Disclosure covering writer, editor and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.