First Trust Advisors L.P. (“FTA”) announced today that, subject to the satisfaction of certain customary closing conditions, the reorganization of First Trust Value Line® 100 Exchange-Traded Fund (NYSE Arca: FVL), an index based exchange-traded fund (“ETF”), managed by FTA, into First Trust Value Line® Dividend Index Fund (NYSE Arca: FVD), an index based ETF managed by FTA, is expected to become effective immediately before the opening of the NYSE Arca on December 14, 2020.
As previously announced, the shareholders of FVL approved FVL’s reorganization into FVD at a Special Meeting of Shareholders on November 16, 2020. The reorganization was approved by the Board of Trustees of each of FVL and FVD on January 30, 2020.
Upon the completion of the transaction, which is expected to be tax-free, the assets of FVL will be transferred to, and the liabilities of FVL will be assumed by, FVD. The shareholders of FVL will receive shares of FVD with a value equal to the aggregate net asset value of the shares of FVL held by them.
FVL 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 Value Line® 100 Index. FVL 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 seeks to measure the performance of the 100 highest ranked securities according to Value Line Publishing, LLC’s (the “Index Provider”) proprietary Value Line Timeliness Ranking System.
FVD 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 Value Line® Dividend Index. FVD 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 seeks to measure the performance of certain ranked securities according to the Index Provider’s proprietary Value Line® SafetyTM Ranking System that are also still expected to provide above-average dividend yield.
FTA is a federally registered investment advisor and serves as the investment advisor of FVL and FVD. 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 $164 billion as of November 30, 2020 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 / Forward-Looking Statements
This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of FLV or FVD. Certain statements made in this news 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 the historical experience of FTA and the funds managed by FTA and its present expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FTA, FVL and FVD undertake no responsibility to update publicly or revise any forward-looking statements.
An investor should carefully consider the investment objectives, risks, charges and expenses of FVL or FVD, as applicable, before investing. The prospectuses for FVL and FVD contain this and other important information and are available free of charge by calling toll-free at 1-800-621-1675 or writing FVL or FVD at 120 East Liberty Drive, Suite 400, Wheaton, IL 60187. The prospectus should be read carefully before investing.
Jim Dykas – (630) 517-7665