First Trust Board Approves Reorganization of First Trust Mega Cap AlphaDEX® Fund into First Trust Dow 30 Equal Weight ETF
February 06 2020 - 3:45PM
Business Wire
First Trust Advisors L.P. (“FTA”) announced today that the Board
of Trustees of First Trust Mega Cap AlphaDEX® Fund (Nasdaq: FMK),
an index based exchange-traded fund (“ETF”), managed by FTA,
approved the reorganization of FMK into First Trust Dow 30 Equal
Weight ETF (NYSE Arca: EDOW), an index based ETF managed by FTA.
The reorganization has also been approved by the Board of Trustees
of the EDOW. EDOW will be the surviving fund.
Under the terms of the proposed transaction, which is expected
to be tax‑free, the assets of FMK would be transferred to, and the
liabilities of FMK would be assumed by, EDOW, and shareholders of
FMK would receive shares of EDOW with a net asset value equal to
the aggregate net asset value of the FMK shares held by them. It is
currently expected that the transaction will be consummated no
later than the second quarter of 2020, subject to requisite
approvals by FMK and EDOW shareholders 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 objective and strategies of
EDOW will remain unchanged.
FMK 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® Mega
Cap Index. FMK pursues this investment objective by investing at
least 90% of its net assets in the common stocks that comprise the
index. The index is designed to select mega cap stocks from the
NASDAQ US 500 Large Cap Index that may generate positive alpha, or
risk-adjusted returns, relative to traditional indices through the
use of the AlphaDEX® selection methodology.
EDOW 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 Dow Jones Industrial
Average Equal Weight Index. EDOW pursues this investment objective
by investing at least 90% of its net assets in the common stocks
that comprise the index. The index is the equal weight version of,
and seeks to measure the performance of, the Dow Jones Industrial
AverageTM which is composed of 30 securities issued by blue-chip
U.S. companies covering all industries, with the exception of
transportation and utilities.
FTA is a federally registered investment advisor and serves as
the investment advisor of FMK and EDOW. 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 FMK or EDOW, nor is this
press release intended to solicit a proxy from any shareholder of
FMK or EDOW. 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 EDOW. 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 FMK unless and until the
Registration Statement is declared effective by the SEC.
FMK, EDOW, 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 FMK’s,
EDOW’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 FMK and EDOW 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 FMK and EDOW 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 FMK and EDOW.
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, FMK and EDOW undertake no
responsibility to update publicly or revise any forward‑looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200206005981/en/
Ryan Issakainen – (630) 765-8689
Jim Dykas – (630) 517-7665
Freemarkets (NASDAQ:FMKT)
Historical Stock Chart
From Oct 2024 to Oct 2024
Freemarkets (NASDAQ:FMKT)
Historical Stock Chart
From Oct 2023 to Oct 2024