First Trust Advisors L.P. (“FTA”) announced today that the
Boards of Trustees of First Trust Canada AlphaDEX® Fund (Nasdaq:
FCAN), First Trust Australia AlphaDEX® Fund (NYSE Arca: FAUS),
First Trust Hong Kong AlphaDEX® Fund (Nasdaq: FHK), and First Trust
South Korea AlphaDEX® Fund (Nasdaq: FKO), each an index based
exchange-traded fund (“ETF”), managed by FTA, approved the
reorganizations of FCAN, FAUS, FHK and FKO, respectively, into
First Trust Developed Markets ex-US AlphaDEX® Fund (Nasdaq: FDT),
an index based ETF managed by FTA. The reorganizations have also
been approved by the Board of Trustees of the FDT. FDT will be the
surviving fund for each reorganization.
Under the terms of the proposed transactions, which are expected
to be tax‑free, the assets of each of FCAN, FAUS, FHK and FKO would
be transferred to, and the liabilities of each of FCAN, FAUS, FHK
and FKO would be assumed by, FDT, and shareholders of FCAN, FAUS,
FHK and FKO would receive shares of FDT with a net asset value
equal to the aggregate net asset value of the FCAN, FAUS, FHK and
FKO shares held by them, as applicable. It is currently expected
that the transaction will be consummated no later than the second
quarter of 2020, subject to requisite approvals by the shareholders
of each of FCAN, FAUS, FHK and FKO 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 transactions, will be
obtained. More information on the proposed transactions 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 transactions, the investment objective and strategies of
FDT will remain unchanged.
FCAN 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 NASDAQ AlphaDEX® Canada
Index. FCAN 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 composed of securities issued
by small, mid and large cap companies operating in Canada, as
classified by Nasdaq, Inc.
FAUS 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 NASDAQ AlphaDEX®
Australia Index. FAUS 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 composed
of securities issued by small, mid and large cap companies
operating in Australia, as classified by Nasdaq, Inc.
FHK 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 NASDAQ AlphaDEX® Hong
Kong Index. FHK 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 composed of
securities issued by small, mid and large cap companies operating
in Hong Kong, as classified by Nasdaq, Inc.
FKO 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 NASDAQ AlphaDEX® South
Korea Index. FKO 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 composed of
securities issued by small, mid and large cap companies operating
in South Korea, as classified by Nasdaq, Inc.
FDT 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 NASDAQ AlphaDEX®
Developed Markets Ex-US Index. FDT 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 composed of securities issued by small, mid and large cap
companies operating in developed markets excluding the United
States, as classified by Nasdaq, Inc.
FTA is a federally registered investment advisor and serves as
the investment advisor of FCAN, FAUS, FHK, FKO and FDT. 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 $145 billion as of December 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.
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 FCAN, FAUS, FHK, FKO or FDT,
nor is this press release intended to solicit a proxy from any
shareholder of FCAN, FAUS, FHK, FKO or FDT. The solicitation of the
purchase or sale of securities or of proxies to effect the
transaction may only be made by a final, effective Registration
Statement, which includes a definitive Proxy Statement/Prospectus,
after the Registration Statement is declared effective by the
SEC.
This press release references a Registration Statement, which
includes a Proxy Statement/Prospectus, to be filed by FDT. This
Registration Statement has yet to be filed with the SEC. After the
Registration Statement is filed with the SEC, it may be amended or
withdrawn and the Proxy Statement/Prospectus will not be
distributed to shareholders of FCAN, FAUS, FHK or FKO unless and
until the Registration Statement is declared effective by the
SEC.
FCAN, FAUS, FHK, FKO, FDT, FTA, FTP and their respective
trustees, officers and employees, and other persons may be deemed
to be participants in the solicitation of proxies with respect to
the proposed reorganization. Investors and shareholders may obtain
more detailed information regarding the direct and indirect
interests of FCAN’s, FAUS’s, FHK’s, FKO’s, FDT’s, FTA’s and FTP’s
respective directors, trustees, officers and employees by reading
the Proxy Statement/Prospectus regarding the proposed
reorganization when it is filed with the SEC.
Investors and security holders of FCAN, FAUS, FHK and FKO are
urged to read the Proxy Statement/Prospectus 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 FCAN, FAUS, FHK and FKO,
as applicable, and FDT carefully. The Proxy Statement/Prospectus
will contain information with respect to the investment objectives,
risks, charges and expenses of the funds and other important
information about FCAN, FAUS, FHK, FKO and FDT. The Proxy
Statement/Prospectus 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 Registration Statement
and Proxy Statement/Prospectus 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 Proxy
Statement/Prospectus and other documents filed with the SEC may
also be obtained after the Registration Statement becomes effective
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, FCAN, FAUS, FHK, FKO and FDT
undertake no responsibility to update publicly or revise any
forward‑looking statements.
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Ryan Issakainen – (630) 765-8689 Jim Dykas – (630) 517-7665
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