First Trust Adds Fee Waiver to ETF Conversion Proposal, Boosting Shareholder Savings

summarizeSummary

First Trust Senior Floating Rate Income Fund II filed an amendment to its proxy statement, adding a 0.10% fee waiver for the proposed ETF conversion, which will result in greater cost savings for shareholders.

check_boxKey Events

• Enhanced Shareholder Savings

  First Trust has agreed to an additional 0.10% fee waiver for the acquiring fund (First Trust Flexible Income ETF) for the first twelve months post-conversion.

• Increased Expense Reduction

  This waiver increases the expected total annual expense ratio reduction for shareholders to 1.18% on Managed Assets (from 1.08%) and 1.52% on net assets (from 1.42%) for the initial year.

• Amendment to ETF Conversion Proxy

  This filing provides supplemental definitive proxy materials related to the previously announced proposal to convert the fund into an actively managed ETF.

auto_awesomeAnalysis

This supplemental proxy material enhances the terms of the proposed conversion of First Trust Senior Floating Rate Income Fund II into an actively managed ETF. The addition of a 0.10% fee waiver for the acquiring fund for the first year significantly increases the expected cost savings for shareholders, making the reorganization more attractive. This move, while the stock trades near its 52-week low, could be aimed at bolstering shareholder support for the conversion.