Raymond James Fund Converts to ETF Structure
September 2, 2008
SAN DIEGO (ETFguide.com) – It’s been a rare occurrence, but some closed-end mutual funds are opting to become exchange-traded funds (ETFs).
To that end, Claymore Advisors announced that the shareholders of Claymore/Raymond James SB-1 Equity Fund (Ticker: RYJ) have approved a reorganization into an exchange-traded fund (ETF) format.
The reorganized fund’s performance will be linked to the Raymond James Strong Buy 1 (“SB-1”) Index.
Equity components within the index are determined by analyst equity ratings at Raymond James. After being selected, fund holdings are assigned a modified equal-weighting.
Currently, the analysts at Raymond James publish research on more than 600 companies. Much of the research focuses on specific industry sectors like consumer, energy, financial services, healthcare, real estate and technology.
The fund's portfolio may include common stocks, non-U.S. securities, REITs, MLPs and other investment companies. Fund holdings are reconstituted and rebalanced approximately every two weeks (twice per calendar month).
The Reorganization is currently expected to close on or about September 3rd, 2008, subject to satisfaction of certain closing conditions. Assuming such conditions are satisfied, it is currently expected that the Fund will cease trading on the NYSE after the close of trading on September 3, 2008 and the RYJ ETF will begin trading on NYSE Arca on September 4, 2008.
Also, the fund’s annual expense ratio is being lowered from 1.08 to 0.75 percent.
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