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Written by Wilfred Ling
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Tuesday, 01 September 2009 |
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Previously I mentioned DXO stopped issuing shares. Now, it is announced that this PowerShares DB Crude Oil Double Long Exchange Traded Note will be close down due to "regulatory event" on 9 September 2009 (source: HERE). While I have no clients affected by this, I suggest that anyone who is holding this as a Singapore resident NOT to wait for the force redemption on 9 September. Instead, I suggest to liquidate NOW by selling it in the open market if this is possible. The reason is because upon closing down, the assets will be distributed and there is a very high chance that this is treated as "dividend" distribution and therefore taxed at 30%! To avoid making potential 30% losses due to unnecessary tax, get out NOW!
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