iShares will close and liquidate the iShares Diversified Alternatives Trust, according to a letter to shareholders.

The decision to liquidate was based on two factors, according to the letter: client feedback on limited application in investment portfolios and lack of long-term demand for the fund.

Trading of the fund will halt May 29, 2013 and liquidation will begin. The liquidation and cash distributions to shareholders are expected to be completed on or about June 4, 2013.

The fund carries a price tag of 95 bps and has a three star rating from Morningstar.

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