Brookstone Asset Management Announces Closures of 4 Formula Folio Investment Funds
WHEATON, Ill., August 1, 2023 (Newswire.com) - Brookstone Asset Management, LLC (BAM), previously Formula Folio Investments LLC, announced today that the Shares of the Funds listed and traded on Cboe BZX Exchange, Inc. -- FormulaFolios Hedged Growth ETF (FFHG), FormulaFolios Smart Growth ETF (FFSG), FormulaFolios Tactical Growth ETF (FFTG), FormulaFolios Tactical Income ETF (FFTI) -- will close.
The Board of Trustees of the Northern Lights Fund Trust IV has authorized an orderly liquidation of the Funds. On June 26, 2023, the Board determined that closing and liquidating the Funds was in the best interests of each Fund and its shareholders.
The last day of trading of the Funds' shares on CBOE will be Oct. 6, 2023 ("Closing Date"), which will also be the last day the Funds will accept creation units from authorized participants. Shareholders may sell their holdings in the Funds prior to the Closing Date and customary brokerage charges may apply to these transactions. Authorized participants may redeem baskets of shares for a pro-rata portion of each Fund's portfolio on hand through the Closing Date.
The Funds are expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders on Oct. 16, 2023 (the "Liquidation Date").
From the Closing Date (Oct. 6, 2023) through the Liquidation Date (Oct. 16, 2023), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Funds' shares during this time period. Between the Closing Date and the Liquidation Date, each Fund will be in the process of closing down and liquidating its portfolio. This process will result in each Fund increasing its cash holdings and, as a consequence, not tracking its underlying index.
Shareholders remaining on Oct. 16, 2023, will receive cash at the net asset value of their shares as of that date, which will include any capital gains and dividends as of such date. The liquidating cash distribution to shareholders will be treated as payment in exchange for their shares. The liquidation of the Fund's shares may be treated as a taxable event. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation. Once the distributions are complete, the Funds will terminate.
About Brookstone Asset Management
Effective June 1, 2023, FormulaFolios Investments LLC, changed its name to "Brookstone Asset Management LLC."
Brookstone Asset Management (BAM) is an SEC-registered asset management firm, providing a broad spectrum of ETF investments to help build long-term, risk-managed portfolios. Brookstone Asset Management offers financial professionals and individual investors investment strategies focused on US equities, bonds, and other investments designed to meet the needs of any investor's risk tolerance.
Source: Brookstone Asset Management