LP, where he was responsible for interest rate derivatives transactions, trade
modeling, research, and performance
reporting. Mr. Stanojevic received his BS in Finance from the California State
University Long Beach (Magna Cum Laude), and an MBA from Loyola Marymount
University, Los Angeles.
additional information concerning First Trust and the Sub-Advisor, including a
description of the services provided to the Fund, see the Fund’s
SAI. Additional information about the portfolio managers’ compensation, other
accounts managed by the portfolio managers and the portfolio managers’ ownership
of shares in the Fund is provided in the SAI.
Pursuant to an
investment management agreement between First Trust and the Trust, on behalf of
the Fund (the “Investment
First Trust oversees TCW's management of the Fund's assets and pays TCW for its
services as Sub-Advisor. First Trust is paid an annual management fee by the
Fund equal to 0.95% of the Fund's average daily net assets and is responsible
for the Fund's expenses, including the cost of transfer agency, custody, fund
administration, legal, audit and other services, but excluding fee payments
under the Investment Management Agreement, interest, taxes, acquired fund fees
and expenses, if any, brokerage commissions and other expenses connected with
the execution of portfolio transactions, expenses associated with short sales
transactions, distribution and service fees payable pursuant to a Rule 12b-1
plan, if any, and extraordinary expenses.
contractual agreement, First Trust has agreed to waive management fees of 0.10%
of average daily net assets until February 10, 2023 for the Fund.
The fee waiver agreement may be terminated by action of the Board of Trustees at
any time upon 60 days’ written notice by the Trust, on behalf of the Fund, or by
First Trust only after February 10, 2023. First Trust has committed to the fee
waiver to respond to the current low interest rate environment and expects that
the fee waiver will be appropriate until long term yields increase. First Trust
anticipates that if the trailing average 30-day yield of the current 1-year U.S.
Treasury Bond exceeds 3.50% before February 10, 2023, the fee waiver may not be
continued past February 10, 2023.
regarding the Board’s approval of the Investment Management Agreement and
Sub-Advisory Agreement is available in the Fund’s Annual
Report to Shareholders for the period ended August 31, 2021.
to Buy and Sell Shares
investors buy and sell shares of the Fund in secondary market transactions
through brokers. Shares of the Fund are listed for trading on the
secondary market on one or more national securities exchanges. Shares can be
bought and sold throughout the trading day like other publicly traded shares.
There is no minimum investment when buying shares on the Exchange. Although
shares are generally purchased and sold in “round lots” of 100 shares, brokerage
firms typically permit investors to purchase or sell shares in smaller “odd
lots,” at no per-share price differential. When buying or selling shares through
a broker, investors should expect to pay brokerage commissions, investors may
receive less than the net asset value of the shares because shares are bought
and sold at market prices rather than at net asset value, and investors may pay
some or all of the bid-ask spread for each transaction (purchase or sale) of
Fund shares. Share prices are reported in dollars and cents per share.
normal circumstances, the Fund will pay out redemption proceeds to a redeeming
authorized participant within two days after the
authorized participant’s redemption request is received, in accordance with the
process set forth in the Fund’s SAI and in the agreement between the authorized
participant and the Fund’s distributor. However, the Fund reserves the right,
including under stressed market conditions, to take up to seven days after the
receipt of a redemption request to pay an authorized participant, all as
permitted by the 1940 Act. If the Fund has foreign investments in a country
where a local market holiday, or series of consecutive holidays, or the extended
delivery cycles for transferring foreign investments to redeeming authorized
participants prevents the Fund from delivering such foreign investments to an
authorized participant in response to a redemption request, the Fund may take up
to 15 days after the receipt of the redemption request to deliver such
investments to the authorized participant.
purposes of the 1940 Act, the Fund is treated as a registered investment
company, and, absent an available exemption or exemptive relief,
the acquisition of shares by other registered investment companies and companies
relying on Sections 3(c)(1) or 3(c)(7) of the 1940 Act, is subject to the
restrictions of Section 12(d)(1) of the 1940 Act. The Trust, on behalf of the
Fund, has received an exemptive order from the Securities and Exchange
Commission that permits certain registered investment companies to invest in the
Fund beyond the limits set forth in Section 12(d)(1), subject to certain terms
and conditions, including that any such investment companies enter into an
agreement with the Fund regarding the terms of any investment.