Board Approves Interim and New Investment Sub-Advisory Agreements for First Trust SSI Strategic Convertible Securities ETF
14 Marzo 2019 - 2:22PM
Business Wire
First Trust Advisors L.P. (“FTA”) announced today that the Board
of Trustees (“Board”) of First Trust Exchange-Traded Fund IV (the
“Trust”), on behalf of First Trust SSI Strategic Convertible
Securities ETF (Nasdaq: FCVT) (the “Fund”), a series of the Trust,
voted to approve SSI Investment Management LLC (“SSI LLC”) as
investment sub-advisor to the Fund to replace SSI Investment
Management Inc. (“SSI Inc.”). SSI LLC will begin serving as
investment sub-advisor to the Fund effective upon the closing of
the Transaction described below. SSI Inc. intends to engage in an
internal reorganization pursuant to which it will create a
subsidiary, SSI LLC, and transfer its advisory business to SSI LLC.
After such transfer, Resolute Investment Managers, Inc.
(“Resolute”) has agreed to acquire a majority interest in SSI LLC
(the “Transaction”). The acquisition of the interests in SSI LLC by
Resolute is expected to be considered an “assignment” (as defined
in the Investment Company Act of 1940, as amended) which is
anticipated to result in the automatic termination of the existing
investment sub-advisory agreement among the Fund, FTA and SSI Inc.
(the “Sub-Advisory Agreement”), in accordance with the terms of
such Sub-Advisory Agreement. In light of the proposed Transaction,
the Board approved a new investment sub-advisory agreement (the
“New Agreement”) among the Fund, FTA and SSI LLC. The New Agreement
will be submitted to shareholders of the Fund for approval and
would take effect upon such shareholder approval. If the
Transaction closes prior to receipt of shareholder approval of the
New Agreement terminating the existing Sub-Advisory Agreement, to
avoid any interruption of services, the Board also approved an
interim sub-advisory agreement among the Fund, FTA and SSI LLC
which would be effective upon the consummation of the Transaction
and remain in effect, in general terms, (a) for 150 days following
the closing of the Transaction, (b) until shareholders approve the
New Agreement, or (c) unless sooner terminated as provided by the
terms of the interim sub-advisory agreement, whichever occurs
first. 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. A special shareholder meeting of the Fund to vote
on a proposal to approve the New Agreement is expected to be held
in the second quarter of 2019. There can be no assurance that the
shareholders of the Fund will vote to approve the New Agreement.
The Transaction is expected to close during the second quarter of
2019.
The Fund is an actively managed exchange-traded fund that seeks
total return as its investment objective by investing, under normal
market conditions, at least 80% of its net assets (including
investment borrowings) in a portfolio of U.S. and non-U.S.
convertible securities.
FTA has served as the Fund’s investment advisor since the Fund’s
inception. 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
$125 billion as of February 28, 2019 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.
SSI Inc. is an investment management firm and as the sub-advisor
to the Fund, SSI Inc. is responsible for the selection and ongoing
monitoring of the securities in the Fund’s investment portfolio.
SSI Inc. specializes in alternative investment solutions utilizing
convertible assets, equity securities and hedging strategies. SSI
Inc. was formed in 1973 and serves as investment advisor to
investment portfolios with approximately $1.8 billion in assets
which it managed as of December 31, 2018. SSI Inc. provides
investment advisory services to pension and profit-sharing plans,
corporations, foundations and endowments, Taft-Hartley plans,
family offices, insurance companies, public funds, high-net worth
individuals, private investment vehicles, religious organizations
and mutual funds.
This press release contains certain forward-looking statements
within the meaning of the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements regarding the goals, beliefs, plans
or current expectations of FTA and/or SSI Inc. and their respective
representatives, taking into account the information currently
available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact.
For example, forward-looking statements include the use of words
such as “anticipate,” “estimate,” “intend,” “expect,” “believe,”
“plan,” “may,” “should,” “would” or other words that convey
uncertainty of future events or outcomes. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of the Fund to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. When evaluating the information
included in this press release, you are cautioned not to place
undue reliance on these forward-looking statements, which reflect
the judgment of FTA and SSI Inc. and their respective
representatives only as of the date hereof. We undertake no
obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the
date hereof.
In connection with the solicitation of proxies to approve the
New Agreement, the Fund will file a proxy statement. Because the
proxy statement will contain important information, the Fund’s
shareholders are urged to read the proxy statement and accompanying
materials carefully when they receive them. The Fund’s shareholders
will also be able to obtain copies of these documents and other
transaction-related documents, when available, by calling FTA
toll-free at 800-621-1675. When filed with the SEC, the proxy
statement will be available free of charge at the SEC’s website,
www.sec.gov. The foregoing is not an offer to sell, nor a
solicitation of an offer to buy, shares of the Fund, nor is it a
solicitation of any proxy. The Fund, FTA, SSI Inc. 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
matters described above. Information about the trustees and
officers of the Fund may be found in its annual report previously
filed with the SEC.
The Fund’s daily closing price and net asset value per share as
well as other information can be found at www.ftportfolios.com or
by calling 1-800-988-5891.
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First Trust Advisors L.P.Press Inquiries Ryan Issakainen
630-765-8689Broker Inquiries Sales Team 866-848-9727Analyst
Inquiries Chris Fallow 630-517-7628
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