The Board of Trustees of First Trust Heitman Global Prime Real Estate ETF (PRME), an actively managed exchange traded fund, managed by FTA, has approved the reorganisation of PRME into First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund (FFR), an index based ETF managed by FTA.
The reorganisation has also been approved by the Board of Trustees of the FFR. FFR will be the surviving fund.
Under the terms of the proposed transaction, which is expected to be tax-free, the assets of PRME would be transferred to, and the liabilities of PRME would be assumed by, FFR, and shareholders of PRME would receive shares of FFR with a value equal to the aggregate net asset value of the PRME shares held by them. It is currently expected that the transaction will be consummated before the end of 2019, subject to requisite shareholder approval of PRME and satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained. More information on the proposed transaction will be contained in a registration statement/proxy materials that will be filed with the SEC in the coming weeks. Upon completion of the proposed transaction, the investment objectives and strategies of FFR will remain unchanged.
PRME is an actively managed ETF that seeks to provide a long-term total return. PRME seeks to achieve its investment objectives by investing at least 80 per cent of its net assets in US and non-US exchange traded real estate securities, which includes real estate investment trusts, real estate operating companies and common stocks or depositary receipts of companies primarily engaged in the real estate industry.
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 per cent 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.