First Trust Board Approves Reorganization of First Trust RiverFront Dynamic Asia Pacific ETF into RiverFront Dynamic Developed International ETF
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.
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