First Trust Board Approves Reorganization of First Trust RiverFront Dynamic Asia Pacific ETF into RiverFront Dynamic Develope...
January 15 2021 - 4:33PM
Business Wire
First Trust Advisors L.P. (“FTA”) announced today that the Board
of Trustees of First Trust RiverFront Dynamic Asia Pacific ETF
(Nasdaq: RFAP), an actively managed exchange-traded fund (“ETF”)
managed by FTA and sub-advised by RiverFront Investment Group LLC
(“RiverFront”), approved the reorganization of RFAP into First
Trust RiverFront Dynamic Developed International ETF (Nasdaq:
RFDI), another actively managed ETF managed by FTA and sub-advised
by RiverFront. The reorganization has also been approved by the
Board of Trustees of RFDI. RFDI will be the surviving fund.
Under the terms of the proposed transaction, which is expected
to be tax‑free, the assets of RFAP would be transferred to, and the
liabilities of RFAP would be assumed by, RFDI, and shareholders of
RFAP would receive shares of RFDI with a net asset value equal to
the aggregate net asset value of the RFAP shares held by them. It
is currently expected that the transaction will be consummated no
later than the third quarter of 2021, subject to satisfaction of
applicable regulatory requirements and approvals and customary
closing conditions. More information on the proposed transaction
will be contained in an information statement that will be filed
with the SEC in the coming weeks. Upon completion of the proposed
transaction, the investment objective and strategies of RFDI will
remain unchanged.
RFAP is an actively managed ETF that seeks to provide capital
appreciation. Under normal market conditions, RFAP pursues this
investment objective by investing at least 80% of its net assets
(including investment borrowings) in a portfolio of equity
securities of “Asian Pacific companies” through investments in
common stock, depositary receipts, and common and preferred shares
of real estate investments trusts (“REITs”), and forward foreign
currency exchange contracts and currency spot transactions used to
hedge RFAP’s exposure to the currencies in which the equity
securities of such Asian Pacific companies are denominated. Asian
Pacific countries include the countries located in Asia and the
Pacific Islands as well as Australia and New Zealand. RFAP
generally focuses its Asian Pacific company investments in
Australia, Hong Kong, Japan, New Zealand and/or Singapore. The
securities in which RFAP may invest must be listed on a U.S. or
non-U.S. securities exchange. RFAP may invest in small, mid and
large capitalization companies.
RFDI is an actively managed ETF that seeks to provide capital
appreciation. Under normal market conditions, RFDI pursues this
investment objective by investing at least 80% of its net assets
(including investment borrowings) in a portfolio of equity
securities of developed market companies, including through
investments in common stock, depositary receipts and common and
preferred shares of REITs, and forward foreign currency exchange
contracts and currency spot transactions used to hedge RFDI’s
exposure to the currencies in which the equity securities of such
developed market companies are denominated. Developed market
countries currently include the countries comprising the Morgan
Stanley Capital International World Index or countries considered
to be developed by the World Bank, the International Finance
Corporation or the United Nations. Under normal market conditions,
RFDI will invest in at least three countries and at least 40% of
its net assets in countries other than the United States. The
securities in which RFDI may invest must be listed on a U.S. or
non-U.S. securities exchange. RFDI may invest in small, mid and
large capitalization companies.
FTA is a federally registered investment advisor and serves as
the investment advisor of RFAP and RFDI. FTA and its affiliate
First Trust Portfolios L.P. (“FTP”), a FINRA registered
broker-dealer, are privately-held companies that provide a variety
of investment services. FTA has collective assets under management
or supervision of approximately $171.578 billion as of December 31,
2020 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separately managed accounts. FTA
is the supervisor of the First Trust unit investment trusts, while
FTP is the sponsor. FTP is also a distributor of mutual fund shares
and exchange-traded fund creation units. FTA and FTP are based in
Wheaton, Illinois.
RiverFront Investment Group LLC is a global asset manager
utilizing a strategic and tactical investment approach with
uncommon transparency and serves as the sub-advisor of RFAP and
RFDI. RiverFront is a registered investment advisor whose employees
maintain majority ownership. The team averages 20 years in the
investment industry with an emphasis on relationships with retail
clients and advisors.
Additional Information about the Proposed Reorganization and
Where to Find It
This press release is not intended to, and shall not, constitute
an offer to purchase or sell shares of RFAP or RFDI. This press
release references an information statement, to be filed by RFDI.
This information statement has yet to be filed with the SEC.
Investors and security holders of RFAP are urged to read the
information statement and other documents filed with the SEC
carefully in their entirety when they become available because they
will contain important information about the proposed
reorganization. Investors should consider the investment
objectives, risks, charges and expenses of RFAP and RFDI carefully.
The information statement will contain information with respect to
the investment objectives, risks, charges and expenses of the funds
and other important information about RFAP and RFDI. The
information statement will constitute neither an offer to sell
securities, nor will it constitute a solicitation of an offer to
buy securities, in any state where such offer or sale is not
permitted.
Investors may obtain free copies of the information statement
and other documents (when they become available) filed with the SEC
at the SEC’s web site at www.sec.gov. In addition, free copies of
the information statement and other documents filed with the SEC
may also be obtained after the information statement is filed by
calling FTA toll-free at (800) 621-1675.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA
and the Internal Revenue Code. First Trust has no knowledge of and
has not been provided any information regarding any investor.
Financial advisors must determine whether particular investments
are appropriate for their clients. First Trust believes the
financial advisor is a fiduciary, is capable of evaluating
investment risks independently and is responsible for exercising
independent judgment with respect to its retirement plan
clients.
Forward Looking Statements
Certain statements made in this press release that are not
historical facts are referred to as “forward‑looking statements”
under the U.S. federal securities laws. Actual future results or
occurrences may differ significantly from those anticipated in any
forward‑looking statements due to numerous factors. Generally, the
words “believe,” “expect,” “intend,” “estimate,” “anticipate,”
“project,” “will” and similar expressions identify forward‑looking
statements, which generally are not historical in nature.
Forward‑looking statements are subject to certain risks and
uncertainties that could cause actual results to differ from those
anticipated in any forward-looking statements. You should not place
undue reliance on forward‑looking statements, which speak only as
of the date they are made. FTA, FTP, RiverFront, RFAP and RFDI
undertake no responsibility to update publicly or revise any
forward‑looking statements.
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