First Trust Announces Timing of Reorganization of First Trust/abrdn Global Opportunity Income Fund with and into abrdn Income Credit Strategies Fund

Rhea-AI Summary

First Trust Advisors L.P. (FTA) has announced the timing for the reorganization of First Trust/abrdn Global Opportunity Income Fund (NYSE: FAM) with and into abrdn Income Credit Strategies Fund (ACP). The reorganization, approved by FAM's shareholders and Board of Trustees, is expected to close on September 20, 2024.

Upon completion, FAM's assets will be transferred to ACP, and FAM shareholders will receive ACP shares of equal aggregate net asset value. The reorganization is anticipated to be tax-free. FTA, serving as FAM's investment advisor, manages approximately $241 billion in assets as of August 31, 2024, through various investment vehicles.

Positive

• Tax-free reorganization for shareholders
• Shareholders to receive equivalent value in ACP shares
• FTA manages substantial assets of $241 billion

Negative

• None.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Advisors L.P. (“FTA”) announced today the timing of the closing of the reorganization First Trust/abrdn Global Opportunity Income Fund (NYSE: FAM) (the “Fund”) with and into abrdn Income Credit Strategies Fund (“ACP”).

Shareholders of FAM, a diversified, closed-end management investment company organized as a Massachusetts business trust, approved the reorganization of FAM with and into ACP, a diversified, closed-end management investment company organized as a Delaware statutory trust. As previously announced, the reorganization was approved by the Board of Trustees of FAM on October 23, 2023. Subject to the satisfaction of certain customary closing conditions, the reorganization of FAM into ACP is expected to close as of the close of business on September 20, 2024. Upon the completion of the reorganization, which is expected to be tax-free, the assets of FAM will be transferred to, and the liabilities of FAM will be assumed by, ACP. The shareholders of FAM will receive shares of ACP with a value equal to the aggregate net asset value of the shares of FAM held by them.

FTA is a federally registered investment advisor and serves as the investment advisor of the Fund. 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 $241 billion as of August 31, 2024, 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.

In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, abrdn Private Equity (Europe) Limited and abrdn ETFs Advisors LLC.

Additional Information / Forward-Looking Statements

This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of ACP. An investor should carefully consider the investment objectives, risks, charges and expenses of ACP before investing.

Certain statements made in this news release that are not historical facts are referred to as “forward-looking statements” under the U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the historical experience of FTA and the funds managed by FTA and its present expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FTA, the Funds and ACP undertake no responsibility to update publicly or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240913026987/en/

Jeff Margolin – (630) 517-7643

Daniel Lindquist – (630) 765-8692

Chris Fallow – (630) 517-7628

Source: First Trust Advisors L.P.

FAQ

When is the reorganization of First Trust/abrdn Global Opportunity Income Fund (FAM) expected to close?

The reorganization of First Trust/abrdn Global Opportunity Income Fund (FAM) is expected to close as of the close of business on September 20, 2024.

What will happen to FAM shareholders after the reorganization?

FAM shareholders will receive shares of abrdn Income Credit Strategies Fund (ACP) with a value equal to the aggregate net asset value of their FAM shares.

Is the reorganization of FAM expected to be tax-free?

Yes, the reorganization of FAM into ACP is expected to be tax-free for shareholders.

What is the total asset value managed by First Trust Advisors L.P. as of August 31, 2024?

First Trust Advisors L.P. has collective assets under management or supervision of approximately $241 billion as of August 31, 2024.