Grail Advisors: RIP Or Rebirth?
January 09, 2011 at 11:00 AM EST
Grail Advisors, the San Francisco-based ETF issuer known for pioneering the actively-managed ETF space, recently made an interesting filing with the SEC. In the document, Grail announced that it was entering into a letter of intent concerning a transaction involving ownership interests in order to continue its operations, including paying its future obligations under its fee waiver and expense reimbursement agreements. In other words, it appears as if Grail is on the verge of being sold, though there was no indication as to who might be buying the firm (and the exemptive relief to launch active ETFs that it holds). Should the deal fall through, the SEC filing suggests that the company’s ETFs could be liquidated immediately and that the Board of Trustees of the Trust has the authority to approve the liquidation of each ETF, without shareholder approval. Should this happen it would kill of one of the first companies [...] Click here to read the original article on ETFdb.com. Related Posts: Handicapping The Active ETF Race Grail Launches Two Active Bond ETFs ETF Alternatives To The World’s Largest Mutual Funds Seven Wildly Successful Active ETFs Wide World Of Muni Bond ETFs