WHEATON, Illinois – (COMMERCIAL THREAD) – First Trust Advisors LP (“FTA”) today announced that the shareholders of each of EquityCompass Tactical Risk Manager ETF (NYSE Arca: TERM), an exchange-traded fund (“ETF”) actively managed by FTA , and EquityCompass Risk Manager ETF (NYSE Arca: ERM), an actively managed ETF managed by FTA, approved the reorganization of TERM into ERM at a joint extraordinary meeting of shareholders on September 13, 2021. As previously announced, the reorganization has been approved by the boards of directors. Trustees of TERM and ERM on December 7, 2020. Subject to the satisfaction of certain customary closing conditions, the reorganization of TERM into ERM is expected to be completed on or around October 8, 2021, or as soon as possible thereafter. No assurance can be given as to the exact time of the closing of the transaction. ERM and TERM are both managed by FTA and sub-advised by EquityCompass Investment Management, LLC.
Upon completion of the reorganization, which is expected to be tax exempt, TERM’s assets will be transferred to ERM and TERM’s liabilities will be taken over by ERM. TERM shareholders will receive ERM shares equal in value to the total net asset value of the TERM shares they hold.
TERM is an actively managed ETF that seeks to provide long-term capital appreciation with capital preservation as a secondary objective. TERM pursues these investment objectives by investing in equity securities of companies domiciled in the United States or listed on a US stock exchange. TERM may also invest all or a portion of its assets in cash, cash equivalents and short-term fixed income exchange-traded funds. TERM may also invest all or a significant portion of its assets in securities designed to provide short exposure to large US market indices, including investing in reverse ETFs.
ERM is an actively managed ETF that seeks to provide long-term capital appreciation with capital preservation as a secondary objective. ERM pursues these investment objectives by investing in equity securities of companies domiciled in the United States or listed on a US stock exchange. ERM may also invest all or a portion of its assets in cash, cash equivalents and short-term fixed income exchange-traded funds.
FTA is a federally registered investment advisor and acts as the investment advisor to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a brokerage registered with FINRA, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $ 213 billion as of August 31, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and managed accounts distinct. FTA is the supervisor of the First Trust mutual funds, while FTP is the sponsor. FTP is also a distributor of UCITS units and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Additional information on the proposed reorganization and where to find it
This press release is not intended to, and should not, constitute an offer to buy or sell shares of TERM or ERM. Certain statements made in this press release that are not historical facts are called “forward-looking statements” under US federal securities laws. Actual future results or events may differ materially from those anticipated in forward-looking statements due to many factors. As a general rule, the words “believe”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “” and similar expressions identify forward-looking statements, which do not are generally not historical in nature. Forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ from the historical experience of FTA and the funds managed by FTA and from its current expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. FTA, TERM and ERM assume no responsibility to publicly update or revise forward-looking statements.
An investor should carefully consider the investment objectives, risks, fees and expenses of the TERM or the ERM, as the case may be, before investing. The flyers for TERM and ERM contain this and other important information and are available free of charge by calling toll-free at 1-800-621-1675 or by writing TERM or ERM at 120 East Liberty Drive, Suite 400, Wheaton, IL 60187 The prospectus should be read carefully before investing.