# CLO ETF dissolving



## daddybigbucks (Jan 30, 2011)

I don't know anything about etfs but I bought into this one during the last time oil was under $50. (`6 months ago)
I just got a letter from the Management team saying they are dissolving the company at aug 31 and sell off the assets and dividing them up to the shareholders.


Would it be best to:

sell now and take my lumps,
wait for an uptick day and sell, 
hold till the end of august and sell 
or 
wait for the divvy up of the assets?


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## andrewf (Mar 1, 2010)

I wouldn't overthink it. Probably cleaner to sell and reinvest in something else right away than to wait for it to be paid out.


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## cainvest (May 1, 2013)

Interesting, I've got a small position in CLO .... not exactly sure what this will mean.

edit: Just took a quick look and I guess the best action is to wait for uptick in price and sell it off ... 
Based on the current price it looks like this couldn't have happened at a worse time, of course it still might fall more before Aug 27th.


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## cainvest (May 1, 2013)

Looks like CLO has been tracking fairly well to XEG over the past 6 months. I'll probably just wait to see if it gains a bit on XEG and then fold my CLO holdings into my XEG ones. Either way not a big deal, it'll only cost me $10.


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## daddybigbucks (Jan 30, 2011)

cainvest said:


> Looks like CLO has been tracking fairly well to XEG over the past 6 months. I'll probably just wait to see if it gains a bit on XEG and then fold my CLO holdings into my XEG ones. Either way not a big deal, it'll only cost me $10.


good idea!

plus the divvy yield is a little better but sure that is subject to change.


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## cainvest (May 1, 2013)

Not sure when CLO will get delisted, they say the 27th, but no matter ... as of this morning I'm out of CLO and into XEG.
Got lucky with the timing, instead of selling CLO and buying XEG right after I bought XEG on it's dip a few days ago and sold CLO today. So I gained a bit this way compared to a sell then buy, just lucky it gapped up this morning. In the end its really a wash as CLO was falling faster than XEG over the past couple months so likely it'll work out be a break even.


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## daddybigbucks (Jan 30, 2011)

I sold my CLO and bought Cenovus. 
Cenovus kinda rode out the low oil price better than CLO so I was happy with that. 
I just sold my CVE and traded it in for TransCanada which I think will gain more than Cenovus in the next 2 years.

I kept 100 CLO shares just to see what the outcome is.


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## cainvest (May 1, 2013)

daddybigbucks said:


> I kept 100 CLO shares just to see what the outcome is.


If you could, let me know how that process works out and the final price they give you. I've never had a delisted fund before so it would be interesting to hear how they handle it.


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## Rusty O'Toole (Feb 1, 2012)

What is the NAV? If you can get significantly more dough by waiting you might as well wait. Otherwise, bail now and redeploy the money.


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## daddybigbucks (Jan 30, 2011)

final settlement price was $7.
I sold 90% of my holding in July for $8.50


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