Principal Real Estate Income Fund Announces Board Approval of New Advisory & New Sub-Advisory Agreements & the Annual Shareho...
March 15 2018 - 5:43PM
Business Wire
Principal Real Estate Income Fund (NYSE: PGZ) (the “Fund”)
announces that on March 15, 2018 the Board of Trustees of the Fund
approved a new investment advisory agreement with ALPS Advisors,
Inc. (“ALPS Advisors”), the Fund’s investment adviser, and a new
sub-advisory agreement with Principal Real Estate Investors, LLC
(“PrinREI”), the Fund’s investment sub-adviser, subject to approval
of such agreements by shareholders of the Fund. The new investment
advisory agreement and new sub-advisory agreement were considered
in connection with the recently announced transaction in which DST
Systems, Inc. (“DST”), the parent company of ALPS Advisors, has
entered into a definitive agreement with SS&C Technologies
Holdings, Inc. (“SS&C”) wherein SS&C will acquire DST (the
“Transaction”). The Transaction, when completed, will result in a
change of control of ALPS Advisors, which may be deemed to result
in an “assignment” of the Fund’s existing investment advisory
agreement and sub-advisory agreement, resulting in their automatic
termination. The Transaction is not expected to impact the
day-to-day operations of the Fund and the portfolio managers of the
Fund will remain the same. Except for the commencement dates, the
new advisory and new sub-advisory agreements have materially the
same terms as the corresponding currently effective agreements.
Completion of the Transaction is subject to a number of conditions.
DST and SS&C currently expect to complete the Transaction
before the end of the second quarter of 2018.
To provide for continuity in the operation of the Fund following
the completion of the Transaction, the Board also approved interim
agreements with respect to each of ALPS Advisors and PrinREI that
will allow the firms to continue to serve in their respective roles
as the Fund’s adviser and sub-adviser for a period of up to 150
days or until the date that shareholder approval of the new
agreements is received.
Accordingly, shareholders of the Fund will be asked to approve
the new investment advisory agreement and new sub-advisory
agreement at the annual meeting of shareholders to be held on May
11, 2018. The record date for the Fund’s annual meeting of
shareholders is March 26, 2018.
The Principal Real Estate Income Fund
The investment objective of the Fund is to seek to provide high
current income, with capital appreciation as a secondary objective,
by investing in commercial real estate related securities. The Fund
had approximately $194.76 million of total assets and 6,899,800
common shares outstanding as of October 31, 2017.
The Fund is a closed-end fund and does not continuously issue
shares for sale as open-end mutual funds do. The Fund now trades in
the secondary market. Investors wishing to buy or sell shares need
to place orders through an intermediary or broker. The share price
of a closed-end fund is based on the market's value.
ALPS Advisors, Inc. is the investment adviser to the Fund.
Principal Real Estate Investors, LLC is the investment
sub-adviser to the Fund. PrinREI is not affiliated with ALPS
Advisors or any of its affiliates.
About ALPS Advisors, Inc.
Through its subsidiary companies, ALPS Holdings, Inc. (“ALPS”)
is a leading provider of innovative investment products and
customized servicing solutions to the financial services industry.
Founded in 1985, Denver-based ALPS delivers its asset management
and asset servicing solutions through offices in Boston, New York,
Seattle, and Toronto. ALPS is a wholly owned subsidiary of Kansas
City-based DST Systems, Inc. For more information about ALPS and
its services, visit www.alpsinc.com. Information about ALPS’
products is available at www.alpsfunds.com.
About Principal Real Estate Investors, LLC
Principal Real Estate Investors advises or subadvises $46.5
billion in real estate assets. The firm’s real estate capabilities
include both public and private equity and debt investment
alternatives. Principal Real Estate Investors is the dedicated real
estate group of Principal Global Investors, a diversified asset
management organization and a member of the Principal Financial
Group®.
In connection with the presentation of the new investment
advisory agreement and new sub-advisory agreement to the Fund’s
shareholders for approval, the Fund intends to file relevant
materials with the Securities and Exchange Commission (the “SEC”),
including a preliminary proxy statement on Schedule 14A. Following
the filing of the definitive proxy statement with the SEC, the Fund
will mail the definitive proxy statement and a proxy card to each
shareholder entitled to vote at the annual meeting. Shareholders
are urged to carefully read these materials in their entirety
(including any amendments or supplements thereto) and any other
relevant documents that the Fund will file with the SEC when they
become available because they will contain important
information. The proxy statement and other relevant materials
(when available), and any and all documents filed by the Fund with
the SEC, may be obtained for free at the SEC’s website at
www.sec.gov.
This communication is not a solicitation of a proxy from any
Fund shareholder. The Fund, its investment adviser and sub-adviser
and certain of their respective directors/trustees, officers and
affiliates may be deemed under the rules of the SEC to be
participants in the solicitation of proxies from shareholders in
connection with the proposals. Information about the investment
adviser and sub-adviser, trustees and officers of the Fund may be
found in its annual reports and annual proxy statements previously
filed with the SEC.
ALPS Portfolio Solutions Distributor, Inc., FINRA Member.
NOT FDIC INSURED | May Lose Value | No Bank Guarantee
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version on businesswire.com: http://www.businesswire.com/news/home/20180315006520/en/
DST Global Public RelationsLaura M. Parsons,
+1-816-843-9087mediarelations@dstsystems.com
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