First Trust Announces Adjournment of Special Meeting of Shareholders Relating to the Reorganizations of First Trust High Income Long/Short Fund and First Trust/abrdn Global Opportunity Income Fund with and into abrdn Income Credit Strategies Fund

Rhea-AI Summary

First Trust Advisors L.P. announces the adjournment of a joint special meeting of shareholders of First Trust High Income Long/Short Fund (FSD) and First Trust/abrdn Global Opportunity Income Fund (FAM) to allow more time for voting on reorganizations with abrdn Income Credit Strategies Fund (ACP). Shareholders are urged to vote 'FOR' the reorganization.

Insights

Financial Analyst

The proposed reorganizations of First Trust High Income Long/Short Fund and First Trust/abrdn Global Opportunity Income Fund into abrdn Income Credit Strategies Fund represent a strategic maneuver within the investment fund industry. Such reorganizations are typically pursued to achieve economies of scale, streamline operations and potentially enhance fund performance through broader diversification and improved liquidity. From a financial perspective, the consolidation may result in reduced administrative costs and lower expense ratios for shareholders, which could translate into higher net returns.

However, the success of these reorganizations hinges on shareholder approval, as indicated by the adjournment of the joint special meeting to solicit additional votes. It's crucial for shareholders to consider the implications of these reorganizations on their investment objectives and risk tolerance. The details provided in the proxy statement, including comparative performance data, fee structures and the strategic rationale behind the merger, are key factors that should influence their decision.

Market Research Analyst

Reorganizations within the fund industry often reflect broader market trends and investor preferences. In this case, the shift towards the abrdn Income Credit Strategies Fund may indicate a preference for investment strategies that potentially offer stable income through credit-related investments. The market's response to such reorganizations can vary, with potential impacts on the trading volumes and market prices of the funds involved. Investors and analysts will closely monitor the outcomes of the vote and subsequent fund performance to assess the market's reception of the reorganization.

Furthermore, the outcome of this reorganization could serve as a bellwether for similar initiatives in the industry. A successful merger might encourage other fund families to consider consolidating funds to stay competitive, especially in an environment where passive investment vehicles like ETFs are increasingly popular.

Legal Expert

The adjournment of the shareholder meeting to vote on the reorganization of the funds underscores the legal complexities and regulatory requirements involved in fund mergers. Compliance with the Investment Company Act of 1940, as well as other securities laws, is imperative to ensure that the reorganization process is conducted fairly and transparently. Shareholders must be provided with all material information to make an informed decision, as reflected in the comprehensive proxy statement.

The legal procedures, including the solicitation of shareholder votes and adherence to the SEC's regulatory standards, are critical to the legitimacy of the reorganization process. Any deviation from regulatory compliance could lead to legal challenges and delay or derail the proposed reorganizations. This highlights the importance of legal expertise in navigating the intricacies of fund mergers and ensuring that the interests of all stakeholders are upheld.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Advisors L.P. (“FTA”) announced today that the joint special meeting of shareholders of each of First Trust High Income Long/Short Fund (NYSE: FSD) and First Trust/abrdn Global Opportunity Income Fund (NYSE: FAM) (each, a “Fund” and collectively, the “Funds”) held on February 20, 2024 has been adjourned in order to permit additional solicitation of shareholders of each Fund and to allow shareholders additional time to vote on the respective reorganizations of the Funds with and into abrdn Income Credit Strategies Fund (“ACP”). The joint special meeting of shareholders of the Funds will reconvene on March 7, 2024 at 12:30 Central time in the offices of FTA at 120 East Liberty Drive, Suite 400, Wheaton, Illinois (the “Meeting”).

Shareholders of record of each Fund as of the close of business on October 23, 2023, are entitled to vote at the Meeting. Whether or not shareholders plan to attend the Meeting, it is important that their shares be represented and voted at the Meeting. Shareholders may vote their shares by one of the methods described in the proxy materials previously mailed to them, which includes a combined proxy statement and prospectus (the “proxy statement”). The proxy statement contains important information regarding the proposed reorganizations and shareholders of the Fund are urged to read the proxy statement and accompanying materials carefully. The proxy statement is also available at https://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=e7273425-e2a9-48b7-bb6d-73153c910a7a and the Securities and Exchange Commission’s website at www.sec.gov. If shareholders have any questions regarding the proposals, or need assistance voting, they may call EQ Fund Solutions, LLC at (866) 620-8437. The Boards of Trustees of the Funds believe the reorganizations are in the best interests of the Fund and recommend that shareholders each Fund vote “FOR” the reorganization.

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 $211 billion as of January 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 the Funds or ACP; nor is this press release intended to solicit a proxy from any shareholder of the Funds. The Funds and their trustees and officers, FTA, abrdn and certain of their respective officers and employees, and other persons may be deemed under the rules of the Securities and Exchange Commission to be participants in the solicitation of proxies from shareholders in connection with the matters described above. Information about each Fund’s trustees and officers, FTA and its officers and employees, and other persons may be found in the proxy statement.

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/20240220959640/en/

Jeff Margolin – (630) 517-7643

Daniel Lindquist – (630) 765-8692

Chris Fallow – (630) 517-7628

Source: First Trust Advisors L.P.

FAQ

When will the joint special meeting of shareholders of First Trust High Income Long/Short Fund (FSD) and First Trust/abrdn Global Opportunity Income Fund (FAM) reconvene?

The joint special meeting will reconvene on March 7, 2024, at 12:30 Central time.

Where will the reconvened meeting take place?

The meeting will take place at the offices of FTA at 120 East Liberty Drive, Suite 400, Wheaton, Illinois.

How can shareholders vote on the reorganizations of the Funds with abrdn Income Credit Strategies Fund (ACP)?

Shareholders can vote by following the methods described in the proxy materials previously mailed to them, including the proxy statement.

Who is recommended that shareholders vote 'FOR' the reorganization?

The Boards of Trustees of the Funds believe the reorganizations are in the best interests of the Fund and recommend that shareholders vote 'FOR' the reorganization.

What is the marketing name for abrdn in the United States?

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