First Trust Announces Shareholder Approval of EquityCompass Tactical Risk Manager ETF’s Reorganization into EquityCompass Risk Manager ETF

By AIT News Desk On Sep 15, 2021

First Trust Advisors L.P. (“FTA”) announced that shareholders of each of EquityCompass Tactical Risk Manager ETF (TERM), an actively managed exchange-traded fund (“ETF”), managed by FTA, and EquityCompass Risk Manager ETF (NYSE Arca: ERM), an actively managed ETF managed by FTA, have approved the reorganization of TERM into ERM at a joint Special Meeting of Shareholders on September 13, 2021. As previously announced, the reorganization was approved by the Boards of 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 close on or around October 8, 2021, or as soon thereafter as practicable. No assurance can be given as to the exact timing of the closing of the transaction. ERM and TERM are both managed by FTA and sub-advised by EquityCompass Investment Management, LLC.

Upon the completion of the reorganization, which is expected to be tax-free, the assets of TERM will be transferred to, and the liabilities of TERM will be assumed by, ERM. The shareholders of TERM will receive shares of ERM with a value equal to the aggregate net asset value of the shares of TERM held by them.

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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 U.S. securities 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 broad U.S. market indices including by investing in inverse 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 U.S. securities 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 serves as the Fund’s investment advisor. 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 $213 billion as of August 31, 2021 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.