First Trust GNMA Reinvestment Income Trust Series 117 offers units

By Toni Weeks

San Diego, Jan. 11 - First Trust Portfolios LP said it is offering units of its First Trust GNMA Reinvestment Income Trust "GRIT" Series 117, according to an S-6 amendment filed with the Securities and Exchange Commission.

First Trust is the Wheaton, Ill.-based depositor.

The trust seeks monthly distributions of income and invests in a portfolio of fixed-rate mortgage-backed securities issued by Government National Mortgage Association, or GNMA. The securities represent pools of mortgages on one- to four-family dwellings.

On the initial date of deposit, Jan. 11, the trust consists of $267,783 in contracts to purchase securities. The 24,953 units each have an initial public offering price of $10.8661, of which $10 represents the principal amount of securities, and a net asset value of $10.419. The estimated net annual interest income per unit is $0.3743. The estimated current return is 3.44%, and the estimated long-term return is 0.74%.

The units each carry a maximum sales charge of 3.95%, consisting of a 1.24% initial sales charge, a 2.25% deferred sales charge and a 0.46% creation and development fee. The fee may be reduced on a sliding scale to 2.45% depending on the amount of investment.

The trust has a mandatory termination date of Dec. 31, 2042.

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