First Trust Announces Adjournment of the Joint Special Meeting of Shareholders
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Insights
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 consolidation within the investment fund industry. Such reorganizations are typically pursued to achieve economies of scale, streamline operations and potentially offer a more robust product to investors.
From a financial perspective, the consolidation could lead to reduced administrative and operational costs. Additionally, a larger asset base can result in improved liquidity and potentially better negotiation power with service providers. Shareholders should consider the impact of these reorganizations on the expense ratio of the funds, as cost efficiency is a crucial factor in investment returns.
However, the benefits must be weighed against the risks, such as the integration process and the possibility of changes in investment strategy or management. Shareholders are advised to review the proxy statement carefully, as it contains critical information about the reorganizations' implications on their investments.
In the context of the broader market, the adjournment of the special meeting to solicit additional votes suggests a need for more shareholder engagement and could indicate some initial resistance to the proposed reorganizations. The outcome of such corporate actions can influence investor sentiment and the market's perception of the funds' future performance.
It’s essential to analyze the competitive landscape in which these funds operate. The reorganization could alter the funds' market positioning, affecting their appeal to current and potential investors. A successful merger could enhance the funds' competitiveness by providing access to abrdn's resources and potentially broader investment opportunities.
Stakeholders should monitor the voting results and subsequent market reactions as they can serve as indicators of the market's confidence in the strategic direction of the merged entity.
The legal implications of fund reorganizations are complex and involve careful consideration of fiduciary duties by the Boards of Trustees. The recommendation by the Boards in favor of the reorganization suggests a belief that the merger will serve the best interests of the shareholders.
Shareholders should be aware of their rights in such processes, including the right to vote and the availability of detailed information in the proxy statement. The legal process also ensures that the reorganization complies with regulatory requirements, including SEC oversight. This compliance is vital for maintaining the integrity of the financial markets and protecting investor interests.
It is crucial for shareholders to understand the terms and conditions outlined in the proxy statement, as well as any potential changes in the governance structure of the fund post-reorganization.
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
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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
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Jeff Margolin – (630) 517-7643
Daniel Lindquist – (630) 765-8692
Chris Fallow – (630) 517-7628
Source: First Trust Advisors L.P.
FAQ
When was the joint special meeting of shareholders adjourned?
Where will the reconvened meeting take place?
How can shareholders vote on the reorganizations?
Who is recommended that shareholders vote 'FOR' the reorganization?
What is the marketing name for abrdn in the United States?
