WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“FTA”) announced today that the reorganization of First Trust Heitman Global Prime Real Estate ETF (NYSE Arca: PRME), an actively managed exchange-traded fund (“ETF”), managed by FTA, into First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (NYSE Arca: FFR), an index based ETF managed by FTA, was completed prior to the open of the NYSE Arca on September 16, 2019.
As previously announced, the shareholders of PRME approved the fund’s reorganization into FFR at a Special Meeting of Shareholders on August 22, 2019. The reorganization was approved by the Board of Trustees of each of PRME and FFR on March 11, 2019.
In the reorganization, the assets of PRME were transferred to, and the liabilities of PRME were assumed by, FFR. The shareholders of PRME received shares of FFR with a value equal to the aggregate net asset value of the PRME shares held by them. The exchange of shares took place based upon PRME’s and FFR’s closing net asset values on September 13, 2019. The exchange ratio at which shares of PRME were exchanged for shares of FFR is 0.416055.
FFR is an index based ETF that seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the FTSE EPRA/NAREIT Developed Index. FFR pursues this investment objective by investing at least 90% of its net assets in the common stocks, and depositary receipts that comprise the index. The index is designed to measure the stock performance of companies engaged in specific real estate activities, including the ownership, trading and development of income-producing real estate, in the North American, European, and Asian real estate markets.
FTA is a federally registered investment advisor and serves as the investment advisor of PRME and FFR. 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 $134 billion as of August 31, 2019 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate 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.
This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of FFR. An investor should carefully consider the investment objectives, risks, charges and expenses of FFR before investing. The prospectus for FFR contains this and other important information and is available free of charge by calling First Trust Portfolios L.P. at 1-800-621-1675 or visiting www.ftportfolios.com. The prospectus should be read carefully before investing.
