First Trust Announces Shareholder Approval of New Investment Sub-Advisory Agreement with First Trust Capital Management L.P. for First Trust Merger Arbitrage ETF

By: First Trust Advisors L.P. via Business Wire

February 23, 2022 at 16:15 PM EST

First Trust Advisors L.P. (“FTA”) announced today that the shareholders of First Trust Merger Arbitrage ETF (NYSE Arca: MARB) (the “Fund”) voted at the special meeting of shareholders to approve a new investment sub-advisory agreement (the “New Agreement”) among the Fund, FTA and First Trust Capital Management L.P. (“FTCM”), an affiliate of FTA.

On November 5, 2021, the entity formerly known as Vivaldi Holdings LLC (“Vivaldi Holdings”), which was the parent company of the Fund’s investment sub-advisor (formerly known as Vivaldi Asset Management, LLC (“VAM”)), and First Trust Capital Partners, LLC (“FTCP”), an affiliate of the Advisor, announced the creation of a joint venture, First Trust Capital Solutions L.P. (“FTCS”). In connection with the creation of this joint venture, substantially all of the equity of VAM was transferred to FTCS (the “Transaction”), effective as of November 1, 2021. In addition, VAM converted to a Delaware limited partnership and changed its name to First Trust Capital Management L.P. (“FTCM”). Further, Vivaldi Holdings converted to a Delaware limited partnership and changed its name to VFT Holdings LP (“VFT Holdings”). FTCS is owned 50% by VFT Holdings II LP (which is owned by VFT Holdings and certain other parties) and 50% by FTCP. The Transaction operated as an “assignment” (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)), resulting in the automatic termination of the Fund’s investment sub-advisory agreement with VAM as of November 1, 2021.

As the investment sub-advisor to the Fund, FTCM is responsible for the selection and ongoing monitoring of the securities in the Fund’s investment portfolio. The Fund’s portfolio managers remain the same.

FTA has served as the Fund’s investment advisor since the Fund’s inception. FTA is a federally registered investment advisor and serves as the Funds' 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 $212 billion as of January 31, 2022 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.

You should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. You can download a prospectus or contact FTA to request a prospectus, which contains other information about the Fund. Read it carefully before you invest. The risks of investing in the Fund are spelled out in its prospectus, shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.

This press release does not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.