Annual Report
|
For the Period
January 1, 2023 through
November 30, 2023
|
First Trust Active Global Quality Income ETF (AGQI)
|
1
|
|
2
|
|
5
|
|
7
|
|
8
|
|
10
|
|
11
|
|
12
|
|
13
|
|
15
|
|
16
|
|
25
|
|
26
|
|
32
|
|
34
|
Performance
|
|||||
|
|
Average Annual Total
Returns
|
Cumulative Total Returns
|
||
|
1 Year
Ended
11/30/23
|
5 Years
Ended
11/30/23
|
Inception
(9/24/15)
to 11/30/23
|
5 Years
Ended
11/30/23
|
Inception
(9/24/15)
to 11/30/23
|
Fund Performance
|
|
|
|
|
|
NAV
|
5.26%
|
3.61%
|
3.20%
|
19.37%
|
29.44%
|
Market Price
|
19.72%
|
5.61%
|
2.57%
|
31.37%
|
23.06%
|
Index Performance
|
|
|
|
|
|
MSCI ACWI High Dividend Yield Index
|
3.16%
|
5.59%
|
7.29%
|
31.23%
|
77.84%
|
MSCI ACWI Index
|
12.01%
|
9.07%
|
9.55%
|
54.37%
|
110.94%
|
MSCI Europe Index
|
14.20%
|
7.01%
|
6.12%
|
40.33%
|
62.60%
|
Sector Allocation
|
% of Total
Long-Term
Investments
|
Information Technology
|
19.6
%
|
Consumer Staples
|
15.2
|
Health Care
|
15.0
|
Industrials
|
14.2
|
Energy
|
10.1
|
Financials
|
7.2
|
Consumer Discretionary
|
5.6
|
Materials
|
5.6
|
Communication Services
|
5.2
|
Real Estate
|
2.3
|
Total
|
100.0%
|
Country Allocation
†
|
% of Total
Investments
|
United States
|
27.9
%
|
France
|
19.3
|
United Kingdom
|
12.7
|
Switzerland
|
8.4
|
Ireland
|
6.0
|
Japan
|
5.5
|
Sweden
|
4.9
|
South Korea
|
4.0
|
Taiwan
|
3.8
|
Canada
|
2.9
|
Denmark
|
2.9
|
Hong Kong
|
1.7
|
Total
|
100.0%
|
†
|
Portfolio securities are categorized based upon their country
of incorporation.
|
Top Ten Holdings
|
% of Total
Long-Term
Investments
|
Microsoft Corp.
|
7.5
%
|
RELX PLC
|
5.6
|
TotalEnergies SE
|
5.4
|
Merck & Co., Inc.
|
4.9
|
Shell PLC
|
4.7
|
Sanofi S.A.
|
4.3
|
Mondelez International, Inc., Class A
|
4.1
|
Samsung Electronics Co., Ltd., GDR
|
4.0
|
Coca-Cola (The) Co.
|
3.9
|
Nestle S.A.
|
3.8
|
Total
|
48.2%
|
![]() |
Performance figures assume reinvestment of
all distributions and do not reflect the
deduction of taxes that a shareholder would
pay on Fund distributions or the redemption
or sale of Fund shares. An index is a statistical
composite that tracks a specified financial
market or sector. Unlike the Fund, the indices
do not actually hold a portfolio of securities
and therefore do not incur the expenses
incurred by the Fund. These expenses
negatively impact the performance of the
Fund. The Fund’s past performance does not
predict future performance.
|
|
Beginning
Account Value
June 1, 2023
|
Ending
Account Value
November 30, 2023
|
Annualized
Expense Ratio
Based on the
Six-Month
Period
|
Expenses Paid
During the
Six-Month
Period (a)
|
First Trust Active Global Quality Income ETF (AGQI)
|
||||
Actual
|
$
1,000.00
|
$
1,005.50
|
3.80%
|
$
19.10
|
Hypothetical (5% return before expenses)
|
$
1,000.00
|
$
1,006.02
|
3.80%
|
$
19.11
|
(a)
|
Expenses are equal to the annualized expense ratio as indicated in the table multiplied
by the average account value over the period (June 1, 2023
through November 30, 2023), multiplied by 183/365 (to reflect the six-month period).
This table reflects an annualized expense ratio of 3.80%
because it includes expenses for a portion of the period prior to the reorganization
for the Fund.
|
Shares
|
Description
|
Value
|
|||
COMMON STOCKS (a) — 99.4%
|
|||||
|
Beverages — 7.2%
|
|
|||
76,096
|
Coca-Cola (The) Co.
|
$
4,447,050
|
|||
21,861
|
Pernod Ricard S.A. (EUR)
|
3,772,790
|
|||
|
|
8,219,840
|
|||
|
Chemicals — 3.2%
|
|
|||
13,532
|
Air Products and Chemicals, Inc.
|
3,661,083
|
|||
|
Communications Equipment
— 2.0%
|
|
|||
46,071
|
Cisco Systems, Inc.
|
2,228,915
|
|||
|
Diversified Telecommunication
Services — 2.9%
|
|
|||
184,814
|
TELUS Corp. (CAD)
|
3,306,890
|
|||
|
Electrical Equipment — 6.0%
|
|
|||
67,355
|
nVent Electric PLC
|
3,586,654
|
|||
17,590
|
Schneider Electric SE (EUR)
|
3,228,503
|
|||
|
|
6,815,157
|
|||
|
Electronic Equipment,
Instruments & Components
— 2.4%
|
|
|||
20,412
|
TE Connectivity Ltd.
|
2,673,972
|
|||
|
Food Products — 7.9%
|
|
|||
65,376
|
Mondelez International, Inc.,
Class A
|
4,645,619
|
|||
38,158
|
Nestle S.A. (CHF)
|
4,329,105
|
|||
|
|
8,974,724
|
|||
|
Health Care Equipment &
Supplies — 2.8%
|
|
|||
40,572
|
Medtronic PLC
|
3,216,142
|
|||
|
Household Durables — 3.4%
|
|
|||
45,250
|
Sony Group Corp. (JPY)
|
3,912,755
|
|||
|
Insurance — 7.1%
|
|
|||
222,691
|
AIA Group Ltd. (HKD)
|
1,921,495
|
|||
123,433
|
AXA S.A. (EUR)
|
3,841,914
|
|||
110,940
|
Dai-ichi Life Holdings, Inc.
(JPY)
|
2,305,451
|
|||
|
|
8,068,860
|
|||
|
Machinery — 2.5%
|
|
|||
147,120
|
Sandvik AB (SEK)
|
2,899,289
|
|||
|
Metals & Mining — 2.3%
|
|
|||
38,898
|
Rio Tinto PLC (GBP)
|
2,651,277
|
|||
|
Oil, Gas & Consumable Fuels
— 10.1%
|
|
|||
162,955
|
Shell PLC (EUR)
|
5,342,554
|
|||
89,908
|
TotalEnergies SE (EUR)
|
6,093,036
|
|||
|
|
11,435,590
|
|||
|
Pharmaceuticals — 12.1%
|
|
|||
54,537
|
Merck & Co., Inc.
|
5,588,952
|
Shares
|
Description
|
Value
|
|||
|
|||||
|
Pharmaceuticals (Continued)
|
|
|||
32,232
|
Novo Nordisk A/S, Class B
(DKK)
|
$
3,273,252
|
|||
52,466
|
Sanofi S.A. (EUR)
|
4,880,531
|
|||
|
|
13,742,735
|
|||
|
Professional Services — 5.6%
|
|
|||
165,089
|
RELX PLC (GBP)
|
6,335,869
|
|||
|
Semiconductors &
Semiconductor Equipment
— 3.8%
|
|
|||
44,007
|
Taiwan Semiconductor
Manufacturing Co., Ltd., ADR
|
4,282,321
|
|||
|
Software — 7.4%
|
|
|||
22,317
|
Microsoft Corp.
|
8,456,134
|
|||
|
Specialized REITs — 2.2%
|
|
|||
21,672
|
Crown Castle, Inc.
|
2,541,692
|
|||
|
Technology Hardware, Storage
& Peripherals — 4.0%
|
|
|||
3,266
|
Samsung Electronics Co., Ltd.,
GDR (b)
|
4,543,006
|
|||
|
Textiles, Apparel & Luxury
Goods — 2.2%
|
|
|||
19,622
|
Cie Financiere Richemont S.A.,
Class A (CHF)
|
2,446,868
|
|||
|
Wireless Telecommunication
Services — 2.3%
|
|
|||
329,699
|
Tele2 AB, Class B (SEK)
|
2,581,997
|
|||
|
|||||
|
|||||
|
Total Investments — 99.4%
|
112,995,116
|
|||
|
(Cost $109,195,154)
|
|
|||
|
Net Other Assets and
Liabilities — 0.6%
|
656,112
|
|||
|
Net Assets — 100.0%
|
$
113,651,228
|
(a)
|
Securities are issued in U.S. dollars unless otherwise
indicated in the security description.
|
(b)
|
This security may be resold to qualified foreign investors and
foreign institutional buyers under Regulation S of the
Securities Act of 1933, as amended.
|
Abbreviations throughout the Portfolio of Investments:
|
|
ADR
|
–
American Depositary Receipt
|
CAD
|
–
Canadian Dollar
|
CHF
|
–
Swiss Franc
|
DKK
|
–
Danish Krone
|
EUR
|
–
Euro
|
GBP
|
–
British Pound Sterling
|
GDR
|
–
Global Depositary Receipt
|
HKD
|
–
Hong Kong Dollar
|
JPY
|
–
Japanese Yen
|
SEK
|
–
Swedish Krona
|
Currency Exposure Diversification
|
% of Total
Investments
|
USD
|
44.1
%
|
EUR
|
24.0
|
GBP
|
8.0
|
CHF
|
6.0
|
JPY
|
5.5
|
SEK
|
4.9
|
CAD
|
2.9
|
DKK
|
2.9
|
HKD
|
1.7
|
Total
|
100.0%
|
|
Total
Value at
11/30/2023
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
Common Stocks*
|
$
112,995,116
|
$
112,995,116
|
$
—
|
$
—
|
*
|
See Portfolio of Investments for industry breakout.
|
ASSETS:
|
|
Investments, at value
|
$
112,995,116
|
Foreign currency, at value
|
4,918
|
Receivables:
|
|
Investment securities sold
|
45,666,955
|
Reclaims
|
1,732,269
|
Dividends
|
232,229
|
Total Assets
|
160,631,487
|
|
|
LIABILITIES:
|
|
Due to custodian
|
9,948
|
Due to authorized participant
|
1,519,424
|
Payables:
|
|
Capital shares purchased
|
44,736,350
|
Conversion expense
|
425,000
|
Investment advisory fees
|
186,636
|
Other liabilities
|
102,901
|
Total Liabilities
|
46,980,259
|
NET ASSETS
|
$
113,651,228
|
|
|
NET ASSETS consist of:
|
|
Paid-in capital
|
$
188,121,014
|
Par value
|
88,819
|
Accumulated distributable earnings (loss)
|
(74,558,605
)
|
NET ASSETS
|
$
113,651,228
|
NET ASSET VALUE,
per share
|
$
12.80
|
Number of shares outstanding (unlimited number of shares authorized, par value $0.01
per share)
|
8,881,908
|
Investments, at cost
|
$
109,195,154
|
Foreign currency, at cost (proceeds)
|
$
4,794
|
|
Period
Ended
11/30/2023
(a)
|
Year
Ended
12/31/2022
|
INVESTMENT INCOME:
|
|
|
Dividends
|
$
13,498,251
|
$
15,677,832
|
Interest
|
433,227
|
224,581
|
Foreign withholding tax
|
(674,463
)
|
(905,769
)
|
Other
|
—
|
254
|
Total investment income
|
13,257,015
|
14,996,898
|
|
||
EXPENSES:
|
|
|
Investment advisory fees
|
2,987,239
|
3,302,502
|
Interest and fees on loans
|
2,969,729
|
1,434,564
|
Legal fees
|
464,989
|
72,648
|
Conversion expense
|
425,000
|
—
|
Shareholder reporting fees
|
199,741
|
84,427
|
Accounting and administration fees
|
128,262
|
133,645
|
Transfer agent fees
|
29,922
|
22,728
|
Custodian fees
|
27,627
|
37,990
|
Trustees’ fees and expenses
|
15,907
|
18,540
|
Financial reporting fees
|
8,211
|
9,250
|
Registration and filing fees
|
4,499
|
29,351
|
Audit and tax fees
|
—
|
89,005
|
Other expenses
|
25,912
|
48,936
|
Total expenses
|
7,287,038
|
5,283,586
|
NET INVESTMENT INCOME (LOSS)
|
5,969,977
|
9,713,312
|
|
||
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
|
|
Net realized gain (loss) on:
|
|
|
Investments
|
(43,682,376
)
|
(2,310,937
)
|
In-kind redemptions
|
10,259,264
|
—
|
Written options contracts
|
(3,035,872
)
|
878,033
|
Forward foreign currency contracts
|
62
|
484,630
|
Foreign currency transactions
|
3,478,647
|
(195,471
)
|
Net realized gain (loss)
|
(32,980,275
)
|
(1,143,745
)
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
Investments
|
43,750,172
|
(39,053,489
)
|
Written options contracts
|
(1,076,656
)
|
1,279,019
|
Forward foreign currency contracts
|
—
|
(7,097
)
|
Foreign currency translation
|
(3,619,988
)
|
2,579,064
|
Net change in unrealized appreciation (depreciation)
|
39,053,528
|
(35,202,503
)
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
6,073,253
|
(36,346,248
)
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$
12,043,230
|
$
(26,632,936
)
|
(a)
|
Results for periods prior to November 21, 2023 are for First Trust Dynamic Europe
Equity Income Fund. See Note
4
in the Notes
to Financial Statements.
|
|
Period
Ended
11/30/2023
(a)
|
Year
Ended
12/31/2022
|
Year
Ended
12/31/2021
|
OPERATIONS:
|
|
|
|
Net investment income (loss)
|
$
5,969,977
|
$
9,713,312
|
$
10,714,795
|
Net realized gain (loss)
|
(32,980,275
)
|
(1,143,745
)
|
6,829,972
|
Net change in unrealized appreciation (depreciation)
|
39,053,528
|
(35,202,503
)
|
20,235,701
|
Net increase (decrease) in net assets resulting from operations
|
12,043,230
|
(26,632,936
)
|
37,780,468
|
|
|||
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
|
|
|
Investment operations
|
(13,268,569
)
|
(8,839,335
)
|
(12,099,724
)
|
Return of capital
|
—
|
(3,567,639
)
|
(307,250
)
|
Total distributions to shareholders
|
(13,268,569
)
|
(12,406,974
)
|
(12,406,974
)
|
|
|||
SHAREHOLDER TRANSACTIONS:
|
|
|
|
Proceeds from shares sold
|
—
|
—
|
—
|
Cost of shares redeemed
|
(106,961,611
)
|
—
|
—
|
Net increase (decrease) in net assets resulting from shareholder transactions
|
(106,961,611
)
|
—
|
—
|
Total increase (decrease) in net assets
|
(108,186,950
)
|
(39,039,910
)
|
25,373,494
|
|
|||
NET ASSETS:
|
|
|
|
Beginning of period
|
221,838,178
|
260,878,088
|
235,504,594
|
End of period
|
$
113,651,228
|
$
221,838,178
|
$
260,878,088
|
|
|||
CHANGES IN SHARES OUTSTANDING:
|
|
|
|
Shares outstanding, beginning of period
|
17,231,908
|
17,231,908
|
17,231,908
|
Shares sold
|
—
|
—
|
—
|
Shares redeemed
|
(8,350,000
)
|
—
|
—
|
Shares outstanding, end of period
|
8,881,908
|
17,231,908
|
17,231,908
|
(a)
|
Results for periods prior to November 21, 2023 are for First Trust Dynamic Europe
Equity Income Fund. See Note
4
in the Notes
to Financial Statements.
|
Cash flows from operating activities:
|
|
|
Net increase (decrease) in net assets resulting from operations
|
$
12,043,230
|
|
Adjustments to reconcile net increase (decrease) in net assets resulting from operations
to net
cash provided by operating activities:
|
|
|
Purchases of investments
|
(204,904,763
)
|
|
Sales, maturities and paydowns of investments
|
337,807,873
|
|
Proceeds from written options
|
10,890,147
|
|
Amount paid to close written options
|
(16,098,238
)
|
|
Net realized gain/loss on investments and written options
|
36,458,984
|
|
Net change in unrealized appreciation/depreciation on investments and written options
|
(42,673,516
)
|
|
|
||
Changes in assets and liabilities
|
|
|
Decrease in reclaims receivable
|
699,467
|
|
Decrease in dividends receivable
|
489,471
|
|
Decrease in prepaid expenses
|
2,666
|
|
Increase in due to authorized participant
|
1,519,424
|
|
Decrease in interest and fees payable on loans
|
(557,611
)
|
|
Decrease in investment advisory fees payable
|
(88,886
)
|
|
Decrease in audit and tax fees payable
|
(87,682
)
|
|
Decrease in legal fees payable
|
(1,954
)
|
|
Decrease in shareholder reporting fees payable
|
(19,814
)
|
|
Decrease in administrative fees payable
|
(107,421
)
|
|
Decrease in custodian fees payable
|
(12,179
)
|
|
Decrease in transfer agent fees payable
|
(3,060
)
|
|
Decrease in trustees’ fees and expenses payable
|
(62
)
|
|
Decrease in financial reporting fees payable
|
(771
)
|
|
Increase in conversion expense payable
|
425,000
|
|
Increase other liabilities
|
88,099
|
|
Cash provided by operating activities
|
|
$
135,868,404
|
|
||
Cash flows from financing activities:
|
|
|
Cost of shares redeemed
|
(62,225,261
)
|
|
Distributions to shareholders from investment operations
|
(13,268,569
)
|
|
Repayment of outstanding loans
|
(72,852,139
)
|
|
Effect of exchange rate changes on Euro Loans (b) (c)
|
(286,995
)
|
|
Cash used in financing activities
|
|
(148,632,964
)
|
Decrease in cash, foreign currency and restricted cash
|
|
(12,764,560
)
|
Cash, foreign currency and restricted cash at beginning of period
|
|
12,759,530
|
Cash, foreign currency and restricted cash at end of period
|
|
$
(5,030
)
|
|
||
Supplemental disclosure of cash flow information:
|
|
|
Cash paid during the period for interest and fees
|
|
$
3,527,340
|
|
||
Cash, foreign currency and restricted cash reconciliation:
|
|
|
Cash and foreign currency
|
$
(5,030
)
|
|
Restricted cash
|
—
|
|
Cash, foreign currency and restricted cash at end of period
|
|
$
(5,030
)
|
(a)
|
Results for periods prior to November 21, 2023 are for First Trust Dynamic Europe
Equity Income Fund. See Note 4 in the Notes
to Financial Statements.
|
(b)
|
This amount is a component of net change in unrealized appreciation (depreciation)
on foreign currency translation as shown on
the Statements of Operations.
|
(c)
|
Net change in unrealized appreciation (depreciation) on foreign currency is $(3,906,983),
which does not include the effect of
exchange rate changes on Euro borrowings.
|
Cash flows from operating activities:
|
|
|
Net increase (decrease) in net assets resulting from operations
|
$
(26,632,936
)
|
|
Adjustments to reconcile net increase (decrease) in net assets resulting from operations
to net
cash provided by operating activities:
|
|
|
Purchases of investments
|
(63,242,939
)
|
|
Sales of investments
|
62,097,199
|
|
Proceeds from written options
|
12,135,740
|
|
Amount paid to close written options
|
(11,256,732
)
|
|
Net realized gain/loss on investments and written options
|
1,432,904
|
|
Net change in unrealized appreciation/depreciation on investments and written options
|
37,774,470
|
|
Net change in unrealized appreciation/depreciation on forward foreign currency contracts
|
7,097
|
|
|
||
Changes in assets and liabilities
|
|
|
Increase in reclaims receivable
|
(60,939
)
|
|
Increase in dividends receivable
|
(150,351
)
|
|
Decrease in prepaid expenses
|
735
|
|
Increase in interest and fees payable on loans
|
393,982
|
|
Decrease in investment advisory fees payable
|
(29,391
)
|
|
Increase in audit and tax fees payable
|
10,324
|
|
Decrease in legal fees payable
|
(4,500
)
|
|
Decrease in shareholder reporting fees payable
|
(13,330
)
|
|
Increase in administrative fees payable
|
35,735
|
|
Increase in custodian fees payable
|
5,808
|
|
Increase in transfer agent fees payable
|
1,408
|
|
Increase in trustees’ fees and expenses payable
|
62
|
|
Increase in other liabilities payable
|
7,878
|
|
Cash provided by operating activities
|
|
$
12,512,224
|
|
||
Cash flows from financing activities:
|
|
|
Distributions to Common Shareholders from investment operations
|
(8,839,335
)
|
|
Distributions to Common Shareholders from return of capital
|
(3,567,639
)
|
|
Effect of exchange rate changes on Euro Loans (b) (d)
|
(2,742,416
)
|
|
Cash used in financing activities
|
|
(15,149,390
)
|
Decrease in cash, foreign currency and restricted cash
|
|
(2,637,166
)
|
Cash, foreign currency and restricted cash at beginning of period
|
|
15,396,696
|
Cash, foreign currency and restricted cash at end of period
|
|
$
12,759,530
|
|
||
Supplemental disclosure of cash flow information:
|
|
|
Cash paid during the period for interest and fees
|
|
$
1,040,582
|
|
||
Cash, foreign currency and restricted cash reconciliation:
|
|
|
Cash and foreign currency
|
$
3,471,530
|
|
Restricted cash
|
9,288,000
|
|
Cash, foreign currency and restricted cash at end of period
|
|
$
12,759,530
|
(d)
|
Includes net change in unrealized appreciation (depreciation) on foreign currency
of $(163,352), which does not include the effect
of exchange rate changes on Euro borrowings.
|
|
Period
Ended
11/30/23
(a)
|
Year Ended December 31,
|
||||
|
2022
(a)
|
2021
(a)
|
2020
(a)
|
2019
(a)
|
2018
(a)
|
|
Net asset value, beginning of period
|
$
12.87
|
$
15.14
|
$
13.67
|
$
16.18
|
$
14.66
|
$
19.87
|
Income from investment operations:
|
|
|
|
|
|
|
Net investment income (loss)
|
0.35
(b)
|
0.56
|
0.62
|
0.35
|
0.82
|
0.74
|
Net realized and unrealized gain (loss)
|
0.35
|
(2.11
)
|
1.57
|
(1.90
)
|
2.15
|
(4.50
)
|
Total from investment operations
|
0.70
|
(1.55
)
|
2.19
|
(1.55
)
|
2.97
|
(3.76
)
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
Net investment income
|
(0.77
)
|
(0.51
)
|
(0.70
)
|
(0.41
)
|
(1.08
)
|
(0.70
)
|
Net realized gain
|
—
|
—
|
—
|
—
|
—
|
(0.75
)
|
Return of capital
|
—
|
(0.21
)
|
(0.02
)
|
(0.55
)
|
(0.37
)
|
—
|
Total distributions
|
(0.77
)
|
(0.72
)
|
(0.72
)
|
(0.96
)
|
(1.45
)
|
(1.45
)
|
Net asset value, end of period
|
$
12.80
|
$
12.87
|
$
15.14
|
$
13.67
|
$
16.18
|
$
14.66
|
Total return
(c)
|
5.67
%
|
(9.56
)%
|
17.01
%
|
(7.79
)%
|
22.24
%
|
(19.36
)%
|
|
||||||
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$
113,651
|
$
221,838
|
$
260,878
|
$
235,505
|
$
278,738
|
$
252,663
|
Ratio of total expenses to average net assets
|
3.46
%
(d)
|
2.32
%
|
1.93
%
|
2.15
%
|
1.99
%
|
1.91
%
|
Ratio of total expenses to average net
assets excluding interest expense
|
2.05
%
(d)
|
1.69
%
|
1.64
%
|
1.71
%
|
1.69
%
|
1.65
%
|
Ratio of net investment income (loss) to
average net assets
|
2.84
%
(d)
|
4.26
%
|
4.23
%
|
2.82
%
|
5.37
%
|
4.19
%
|
Portfolio turnover rate (e)
|
77
%
|
22
%
|
33
%
|
43
%
|
64
%
|
44
%
|
|
||||||
Indebtedness:
|
|
|
|
|
|
|
Total loans outstanding (in 000’s)
|
$
—
|
$
73,139
|
$
75,882
|
$
79,232
|
$
100,524
|
$
87,650
|
Asset coverage per $1,000 of indebtedness (f)
|
$
—
|
$
4,033
|
$
4,438
|
$
3,972
|
$
3,773
|
$
3,883
|
(a)
|
Results for periods prior to November 21, 2023 are for First Trust Dynamic Europe
Equity Income Fund. See Note
4
in the Notes to Financial
Statements.
|
(b)
|
Based on average shares outstanding.
|
(c)
|
As of November 21, 2023, total return is calculated assuming an initial investment
made at the net asset value at the beginning of the period,
reinvestment of all distributions at net asset value during the period, and redemption
at net asset value on the last day of the period. Prior to
November 21, 2023, total return based on net asset value assumed that all dividend
distributions were reinvested at prices obtained by the
Dividend Reinvestment Plan of First Trust Dynamic Europe Equity Income Fund. See Note
4
in the Notes to Financial Statements. The returns
presented do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund shares. Total
return is calculated for the time period presented and is not annualized for periods
of less than a year.
|
(d)
|
Annualized.
|
(e)
|
Portfolio turnover is calculated for the time period presented and is not annualized
for periods of less than a year and does not include securities
received or delivered from processing creations or redemptions and in-kind transactions.
|
(f)
|
Calculated by subtracting the Fund’s total liabilities (not including the loans outstanding) from the Fund’s total assets, and dividing by the
outstanding loans balance in 000’s.
|
Distributions paid from:
|
2023*
|
2022
|
2021
|
Ordinary income
|
$
13,268,569
|
$
8,839,335
|
$
12,099,724
|
Capital gains
|
—
|
—
|
—
|
Return of capital
|
—
|
3,567,639
|
307,250
|
*
|
The tax character of distributions for 2023 is for the fiscal period January 1, 2023
to November 30, 2023. Results for periods prior
to November 21, 2023 are for First Trust Dynamic Europe Equity Income Fund. See Note
4
.
|
Undistributed ordinary income
|
$
—
|
Accumulated capital and other gain (loss)
|
(78,413,853
)
|
Net unrealized appreciation (depreciation)
|
3,855,248
|
Accumulated
Net Investment
Income (Loss)
|
Accumulated
Net Realized
Gain (Loss)
on Investments
|
Paid-In
Capital
|
$
7,338,525
|
$
(16,393,418
)
|
$
9,054,893
|
Tax Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
(Depreciation)
|
Net Unrealized
Appreciation
(Depreciation)
|
$
109,215,220
|
$
7,492,275
|
$
(3,712,379
)
|
$
3,779,896
|
Breakpoints
|
|
Fund net assets up to and including $2.5 billion
|
0.85000
%
|
Fund net assets greater than $2.5 billion up to and including $5 billion
|
0.82875
%
|
Fund net assets greater than $5 billion up to and including $7.5 billion
|
0.80750
%
|
Fund net assets greater than $7.5 billion up to and including $10 billion
|
0.78625
%
|
Fund net assets greater than $10 billion
|
0.76500
%
|
Statements of Operations Location
|
|
Currency Risk Exposure
|
|
Net realized gain (loss) on forward foreign currency
contracts
|
$
62
|
Net change in unrealized appreciation (depreciation) on
forward foreign currency contracts
|
—
|
Equity Risk Exposure
|
|
Net realized gain (loss) on written options contracts
|
(3,035,872
)
|
Net change in unrealized appreciation (depreciation) on
written options contracts
|
(1,076,656
)
|
Name,
Year of Birth and
Position with the Trust
|
Term of Office
and Year First
Elected or
Appointed
|
Principal Occupations
During Past 5 Years
|
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
|
Other
Trusteeships or
Directorships
Held by Trustee
During Past
5 Years
|
INDEPENDENT TRUSTEES
|
||||
Richard E. Erickson, Trustee
(1951)
|
•
Indefinite Term
•
Since Inception
|
Retired; Physician, Edward-Elmhurst
Medical Group (2021 to September
2023); Physician and Officer,
Wheaton Orthopedics (1990 to 2021)
|
256
|
None
|
Thomas R. Kadlec, Trustee
(1957)
|
•
Indefinite Term
•
Since Inception
|
Retired; President, ADM Investors
Services, Inc. (Futures Commission
Merchant) (2010 to July 2022)
|
256
|
Director, National Futures
Association and ADMIS
Singapore Ltd.; Formerly,
Director of ADM Investor
Services, Inc., ADM Investor
Services International,
ADMIS Hong Kong Ltd., and
Futures Industry Association
|
Denise M. Keefe, Trustee
(1964)
|
•
Indefinite Term
•
Since 2021
|
Executive Vice President, Advocate
Aurora Health and President,
Advocate Aurora Continuing Health
Division (Integrated Healthcare
System)
|
256
|
Director and Board Chair of
Advocate Home Health
Services, Advocate Home
Care Products and Advocate
Hospice; Director and Board
Chair of Aurora At Home
(since 2018); Director of
Advocate Physician Partners
Accountable Care
Organization; Director of
RML Long Term Acute Care
Hospitals; Director of Senior
Helpers (since 2021); and
Director of MobileHelp
(since 2022)
|
Robert F. Keith, Trustee
(1956)
|
•
Indefinite Term
•
Since Inception
|
President, Hibs Enterprises (Financial
and Management Consulting)
|
256
|
Formerly, Director of Trust
Company of Illinois
|
Niel B. Nielson, Trustee
(1954)
|
•
Indefinite Term
•
Since Inception
|
Senior Advisor (2018 to Present),
Managing Director and Chief
Operating Officer (2015 to 2018),
Pelita Harapan Educational
Foundation (Educational Products
and Services)
|
256
|
None
|
Bronwyn Wright, Trustee
(1971)
|
•
Indefinite Term
•
Since 2023
|
Independent Director to a number of
Irish collective investment funds
(2009 to Present); Various roles at
international affiliates of Citibank
(1994 to 2009), including Managing
Director, Citibank Europe plc and
Head of Securities and Fund Services,
Citi Ireland (2007 to 2009)
|
232
|
None
|
Name,
Year of Birth and
Position with the Trust
|
Term of Office
and Year First
Elected or
Appointed
|
Principal Occupations
During Past 5 Years
|
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
|
Other
Trusteeships or
Directorships
Held by Trustee
During Past
5 Years
|
INTERESTED TRUSTEE
|
||||
James A. Bowen
(1)
, Trustee,
Chairman of the Board
(1955)
|
•
Indefinite Term
•
Since Inception
|
Chief Executive Officer, First Trust
Advisors L.P. and First Trust
Portfolios L.P., Chairman of the
Board of Directors, BondWave LLC
(Software Development Company)
and Stonebridge Advisors LLC
(Investment Advisor)
|
256
|
None
|
Name and
Year of Birth
|
Position and
Offices
with Trust
|
Term of Office
and Length of
Service
|
Principal Occupations
During Past 5 Years
|
OFFICERS
(2)
|
|||
James M. Dykas
(1966)
|
President and Chief
Executive Officer
|
•
Indefinite Term
•
Since Inception
|
Managing Director and Chief Financial Officer, First Trust
Advisors L.P. and First Trust Portfolios L.P.; Chief Financial
Officer, BondWave LLC (Software Development Company) and
Stonebridge Advisors LLC (Investment Advisor)
|
Derek D. Maltbie
(1972)
|
Treasurer, Chief Financial
Officer and Chief
Accounting Officer
|
•
Indefinite Term
•
Since 2023
|
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P., July 2021 to Present. Previously, Vice President,
First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 -
2021.
|
W. Scott Jardine
(1960)
|
Secretary and Chief Legal
Officer
|
•
Indefinite Term
•
Since Inception
|
General Counsel, First Trust Advisors L.P. and First Trust
Portfolios L.P.; Secretary and General Counsel, BondWave LLC;
Secretary, Stonebridge Advisors LLC
|
Daniel J. Lindquist
(1970)
|
Vice President
|
•
Indefinite Term
•
Since Inception
|
Managing Director, First Trust Advisors L.P. and First Trust
Portfolios L.P.
|
Kristi A. Maher
(1966)
|
Chief Compliance Officer
and Assistant Secretary
|
•
Indefinite Term
•
Since Inception
|
Deputy General Counsel, First Trust Advisors L.P. and First
Trust Portfolios L.P.
|
Roger F. Testin
(1966)
|
Vice President
|
•
Indefinite Term
•
Since Inception
|
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P.
|
Stan Ueland
(1970)
|
Vice President
|
•
Indefinite Term
•
Since Inception
|
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P.
|