Ellington Steps Down as Sub-Adviser to Liquidating Ellington Income Opportunities Fund
Princeton Fund Advisors will see the wind-down through alone, and an Ellington executive has left the fund’s board.
October 13, 2026
Ellington Global Asset Management LLC has stepped away from Ellington Income Opportunities Fund midway through the fund's wind-down, leaving Princeton Fund Advisors, LLC to complete the liquidation on its own.
EGAM stopped sub-advising the fund as of October 9, according to a supplement to the fund's prospectus. Princeton Fund Advisors, the fund's investment adviser, will continue advising the fund for the rest of the liquidation.
The board is changing too. Laurence E. Penn, Vice-Chairman and Chief Operating Officer of EGAM, has resigned as a trustee. The fund thanked EGAM for its work as sub-adviser and Penn for his many years of service to the fund and its shareholders. The supplement gives no reason for EGAM's departure and does not say whether the change affects the liquidation timeline.
A Liquidation Already Underway
The board concluded in June that liquidating the interval fund was in the best interests of the fund and its shareholders. Effective immediately at that time, the fund:
- stopped accepting purchase requests;
- stopped pursuing its stated investment objective; and
- terminated its expense limitation agreement with the adviser.
The fund said it would hold cash equivalents as it sold down the portfolio, until all assets had been distributed to shareholders.
Under the plan of liquidation adopted in June, the adviser and the sub-adviser were to convert the portfolio to cash together, by submitting redemption requests to the underlying funds the fund holds and by pursuing secondary market transactions. The fund cautioned that part of its portfolio consists of illiquid securities that are not exchange-listed or traded in an active secondary market, and that a complete liquidation could take several months. With EGAM gone, that work now rests with Princeton Fund Advisors alone.
What Shareholders Can Expect
During the liquidation, the fund committed to keep striking a daily net asset value per share, to distribute required shareholder reports with full portfolio transparency, and to report periodically on the wind-down's progress. Liquidating distributions may consist of dividends, capital gains or a return of capital, and the liquidation is a taxable event for shareholders subject to U.S. federal income tax.
The latest supplement leaves those terms unchanged. Neither it nor the June notice discloses how much of the portfolio has been sold so far or when the final distribution is expected.
