As filed with the Securities and Exchange Commission on March 15, 2018.11, 2020.
===============================================================================
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to SectionPURSUANT TO SECTION 14(a) of the Securities
Exchange Act ofOF THE SECURITIES
EXCHANGE ACT OF 1934 (Amendment No.(AMENDMENT NO. )
Filed by the registrantRegistrant [X]
Filed by a party other than the registrantRegistrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Onlyonly (as permitted by
Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material under ss.Section 240.14a-12
First Trust Dynamic Europe Equity Income Fund
--------------------------------------------------------------------MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FIRST TRUST ENERGY INCOME AND GROWTH FUND
FIRST TRUST ENHANCED EQUITY INCOME FUND
FIRST TRUST MORTGAGE INCOME FUND
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
FIRST TRUST ENERGY INFRASTRUCTURE FUND
FIRST TRUST MLP AND ENERGY INCOME FUND
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND
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(Name of Registrant as Specified in Its Charter)
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(Name of Person(s) Filing Proxy Statement)Statement if Other Than the Registrant)
Payment of filing fee (Check(check the appropriate box):
[X] No Fee Required.fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:(1)
------------------------------------------------------------------------------0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration
statement number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
------------------------------------------------------------------------------Previously Paid:
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(2) Form, scheduleSchedule or registration statement no.Registration Statement No.:
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(3) Filing party:
------------------------------------------------------------------------------Party:
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(4) Date filed:
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(1) Set forth the amount on which the filing fee is calculated and state how
it was determined.Filed:
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FIRST TRUST ENERGY INCOME AND GROWTH FUND
FIRST TRUST ENHANCED EQUITY INCOME FUND
FIRST TRUST MORTGAGE INCOME FUND
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
FIRST TRUST ENERGY INFRASTRUCTURE FUND
FIRST TRUST MLP AND ENERGY INCOME FUND
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
March 15, 201811, 2020
Dear Shareholders:
I am writingShareholder:
The accompanying materials relate to notify youthe Joint Annual Meetings of
an important special meeting (referred to asShareholders (collectively, the "Meeting") of each fund listed above (each a
"Fund" and collectively the shareholders of First Trust Dynamic Europe Equity Income
Fund (the "Fund""Funds"). The Meeting will be held at the Austin, TexasWheaton,
Illinois offices of First Trust Advisors L.P., 500 W. 5th Street,120 East Liberty Drive, Suite
9202, Austin, Texas 78701,400, Wheaton, Illinois 60187, on Monday,Wednesday, April 23, 2018,22, 2020, at 11:45 a.m.12:00 noon
Central Time.
At the Meeting, you will be asked (1) to consider and vote on a proposal to approve a new investment sub-advisory agreementelect one of
the Trustees of your Fund (the "New Agreement""Proposal") among
the Fund, First Trust Advisors L.P. and Janus Capital Management LLC ("JCM"),
and (2) to transact such other business
as may properly come before the Meeting and any adjournments or postponements
thereof. Currently, Henderson Global Investors (North America) Inc. ("HGINA"), an
affiliate of JCM, serves as the Fund's investment sub-adviser. AsThe Proposal is described in the accompanying Notice of Joint Annual
Meetings of Shareholders and Joint Proxy Statement,Statement.
YOUR PARTICIPATION AT THE MEETING IS VERY IMPORTANT. If you cannot attend
the May 2017 merger of Henderson Group plc,
the parent company of HGINA, with Janus Capital Group Inc., the parent company
of JCM, resulted in the formation of Janus Henderson Group plc, doing business
as Janus Henderson Investors.Meeting, you may participate by proxy. As a resultShareholder, you cast one vote
for each full share of various organizational changes
being effected in conjunction with this merger,a Fund that you own and a proportionate fractional vote
for any fraction of a share that you own. Please take a few moments to read the
transition from HGINA to JCM
asenclosed materials and then cast your vote on the Fund's sub-adviser is being proposed. The change in sub-adviser from
HGINA to JCM may be deemed to be an "assignment" (as defined in the Investment
Company Act of 1940, as amended) of the current investment sub-advisory
agreement with HGINA, which may result in the automatic termination of that
investment sub-advisory agreement. Accordingly, the Board of Trustees of the
Fund has approved the New Agreement, which will take effect upon shareholder
approval. It is important to note that the management, operations, governance
and investment functions of HGINA and JCM are substantially the same. Further,
the same portfolio management team currently providing sub-advisory services to
the Fund will continue to do so. In addition, there will be no change to the
sub-advisory fee rate. The Board of Trustees of the Fund is recommending that
shareholders of the Fund approve the New Agreement.
YOURenclosed proxy card.
VOTING TAKES ONLY A FEW MINUTES. EACH SHAREHOLDER'S VOTE IS IMPORTANT.
Please take a moment nowYOUR PROMPT RESPONSE WILL BE MUCH APPRECIATED.
After you have voted on the Proposal, please be sure to vote, either by
completing and returningsign your proxy
card and return it in the enclosed postage-paid envelope,
by telephone or through the Internet. Your prompt response will be much
appreciated.envelope.
We appreciate your participation in this important Meeting.
Thank you.
Sincerely,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board
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IF YOU NEED ANY ASSISTANCE,Boards
INSTRUCTIONS FOR SIGNING PROXY CARDS
The following general rules for signing proxy cards may be of assistance
to you and will avoid the time and expense to your Fund involved in validating
your vote if you fail to sign your proxy card properly.
1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.
2. Joint Accounts: Either party may sign, but the name of the party
signing should conform exactly to the name shown in the registration.
3. All Other Accounts: The capacity of the individual signing the proxy
should be indicated unless it is reflected in the form of registration. For
example:
REGISTRATION VALID SIGNATURE
CORPORATE ACCOUNTS
(1) ABC Corp. ABC Corp.
(2) ABC Corp. John Doe, Treasurer
(3) ABC Corp.
c/o John Doe, Treasurer John Doe
(4) ABC Corp. Profit Sharing Plan John Doe, Trustee
TRUST ACCOUNTS
(1) ABC Trust Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee
u/t/d 12/28/78 Jane B. Doe
CUSTODIAL OR HAVE ANY QUESTIONS REGARDING THE PROPOSAL OR HOW
TO VOTE YOUR SHARES, PLEASE CALL THE FUND'S PROXY SOLICITOR, ASTESTATE ACCOUNTS
(1) John B. Smith, Cust.
f/b/o John B. Smith, Jr., UGMA John B. Smith
(2) John B. Smith John B. Smith, Jr., Executor
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
SOLUTIONS,
LLC, AT (800) 284-1755 WEEKDAYS FROM 9:00 A.M. TO 10:00 P.M. EASTERN TIME.
--------------------------------------------------------------------------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND
FIRST TRUST ENHANCED EQUITY INCOME FUND
FIRST TRUST MORTGAGE INCOME FUND
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
FIRST TRUST ENERGY INFRASTRUCTURE FUND
FIRST TRUST MLP AND ENERGY INCOME FUND
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND
120 EAST LIBERTY DRIVE, SUITEEast Liberty Drive, Suite 400
WHEATON, ILLINOISWheaton, Illinois 60187
NOTICE OF SPECIAL MEETINGJOINT ANNUAL MEETINGS OF SHAREHOLDERS
TO BE HELD ON APRIL 23, 2018
AT
500 W. 5TH STREET
SUITE 9202
AUSTIN, TEXAS 78701To be held on April 22, 2020
March 15, 201811, 2020
To the Shareholders of First Trust Dynamic Europe Equity Income Fund:the above Funds:
Notice is hereby given that a Special Meetingthe Joint Annual Meetings of Shareholders
(the(collectively, the "Meeting") of First Trust Dynamic Europe Equity Income Fund (thethe funds listed above (each a "Fund" and
collectively the "Funds"), each a Massachusetts business trust, will be held at
the Austin, TexasWheaton, Illinois offices of First Trust Advisors L.P., 500 W. 5th Street,120 East Liberty
Drive, Suite 9202, Austin, Texas 78701,400, Wheaton, Illinois 60187, on Monday,Wednesday, April 23, 2018,22, 2020, at
11:45 a.m.12:00 noon Central Time, for the following purposes:
1. To approve a new investment sub-advisory agreement among the Fund,
First Trust Advisors L.P., as investment adviser, and Janus Capital Management
LLC, as investment sub-adviser.elect one Trustee (the Class I Trustee) of each Fund.
2. To transact such other business as may properly come before the
Meeting or any adjournments or postponements thereof.
The Board of Trustees of theeach Fund has fixed the close of business on
February 2, 20183, 2020 as the record date for the determination of shareholders of
thesuch Fund entitled to notice of and to vote at the Meeting and any adjournments
or postponements thereof.
By Order of the BoardBoards of Trustees,
/s/ W. Scott Jardine
W. Scott Jardine
Secretary
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IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED ATSHAREHOLDERS ARE REQUESTED TO PROMPTLY COMPLETE, SIGN, DATE AND RETURN THE MEETING. IN ORDER TO
AVOID DELAY AND TO ENSURE THAT YOUR SHARES ARE REPRESENTED, PLEASE VOTE AS
PROMPTLY AS POSSIBLE. YOU MAY VOTE EASILY AND QUICKLY BY MAIL, TELEPHONE OR
THROUGH THE INTERNET. TO VOTE BY MAIL, PLEASE COMPLETE AND MAIL YOUR PROXY
CARD IN THE ENCLOSED POSTAGE-PAID RETURN ENVELOPE. ALTERNATIVELY, SHAREHOLDERS MAY
VOTE BY TELEPHONE OR THROUGHENVELOPE WHICH DOES NOT REQUIRE POSTAGE IF MAILED IN THE
INTERNET BYCONTINENTAL UNITED STATES. INSTRUCTIONS FOR SIGNING PROXY CARDS ARE SET FORTH
FOLLOWING THE INSTRUCTIONS ON THE
PROXY CARD. IF YOU NEED ANY ASSISTANCE, OR HAVE ANY QUESTIONS REGARDING THE
PROPOSAL OR HOWLETTER TO VOTE YOUR SHARES, PLEASE CALL THE FUND'S PROXY SOLICITOR, ASTSHAREHOLDERS.
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MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
SOLUTIONS, LLC, AT (800) 284-1755 WEEKDAYS FROM 9:00 A.M. TO 10:00 P.M.
EASTERN TIME.
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
FIRST TRUST ENHANCED EQUITY INCOME FUND
FIRST TRUST MORTGAGE INCOME FUND
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND
FIRST TRUST ENERGY INFRASTRUCTURE FUND
FIRST TRUST MLP AND ENERGY INCOME FUND
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND
120 EAST LIBERTY DRIVE, SUITEEast Liberty Drive, Suite 400
WHEATON, ILLINOISWheaton, Illinois 60187
SPECIAL MEETINGJOINT ANNUAL MEETINGS OF SHAREHOLDERS
TO BE HELD ON APRIL 23, 2018
AT
500 W. 5TH STREET
SUITE 9202
AUSTIN, TEXAS 78701To be held on April 22, 2020
JOINT PROXY STATEMENT
MARCH 15, 2018March 11, 2020
THIS JOINT PROXY STATEMENT AND THE ENCLOSED PROXY CARD WILL FIRST BE
MAILED TO SHAREHOLDERS ON OR ABOUT MARCH 22, 2018.20, 2020.
This Joint Proxy Statement is furnished in connection with the
solicitation of proxies by the BoardBoards of Trustees (the "Board of Trustees" or the "Board") of
First Trust Dynamic Europe Equity Income Fund (thefunds listed above
(each a "Fund" and collectively the "Funds"), each a Massachusetts business
trust, for use at a Special Meetingthe Joint Annual Meetings of Shareholders of the FundFunds to be
held on Monday,Wednesday, April 23, 2018,22, 2020, at 11:45 a.m.12:00 noon Central Time, at the Austin, TexasWheaton,
Illinois offices of First Trust Advisors L.P. ("First Trust Advisors" or the "Advisor"), the investment adviseradvisor to theeach
Fund, located at 500 W. 5th Street,120 East Liberty Drive, Suite 9202,
Austin, Texas 78701,400, Wheaton, Illinois 60187, and
at any adjournments or postponements thereof (collectively, the "Meeting"). A
Notice of Special MeetingJoint Annual Meetings of Shareholders and a proxy card accompany this
Joint Proxy Statement. The Board of Trustees of each Fund has determined that
the use of this Joint Proxy Statement is in the best interests of the Fund in
light of the same matter being considered and voted on by shareholders.
The principal offices of First Trust Energy Income and Growth Fund, First
Trust MLP and Energy Income Fund and First Trust New Opportunities MLP & Energy
Fund are located at 10 Westport Road, Suite C101A, Wilton, Connecticut 06897.
The principal offices of each of the other Funds are located at 120 East Liberty
Drive, Suite 400, Wheaton, Illinois 60187.
Proxy solicitations for the Funds will be made primarily by mail. However,
proxy solicitations may also be made by telephone or personal interviews
conducted by officers and service providers of the Funds, including any agents
or affiliates of such service providers.
The costs incurred in connection with the preparation of this Joint Proxy
Statement and its enclosures will be paid by the Funds. The Funds will also
reimburse brokerage firms and others for their expenses in forwarding proxy
solicitation materials from the Funds to the person(s) for whom they hold Fund
shares.
The close of business on February 2, 20183, 2020 has been fixed as the record
date (the "Record Date") for the determination of shareholders entitled to
notice of and to vote at the Meeting and any adjournments or postponements
thereof.
As discussed more fully below, shareholders of the Fund are being asked:
1. To approve a new investment sub-advisory agreement (the "New
Sub-Advisory Agreement") among the Fund, First Trust Advisors L.P., as
investment adviser, and Janus Capital Management LLC, as investment
sub-adviser.
2. To transact such other business as may properly come before the
Meeting or any adjournments or postponements thereof.
GENERAL INFORMATION
The
Each Fund has one class of shares of beneficial interest, par value $0.01
per share, known as common shares ("Shares").
OnIMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR
THE SHAREHOLDER MEETING TO BE HELD ON APRIL 22, 2020. THIS JOINT
PROXY STATEMENT IS AVAILABLE ON THE INTERNET AT
HTTPS://WWW.FTPORTFOLIOS.COM/LOADCONTENT/GEHUKPJ1GA4Y. EACH FUND'S
MOST RECENT ANNUAL AND SEMI-ANNUAL REPORTS ARE ALSO AVAILABLE ON
THE INTERNET AT HTTPS://WWW.FTPORTFOLIOS.COM. TO FIND A REPORT, SELECT
YOUR FUND UNDER THE "CLOSED-END FUNDS" TAB, SELECT THE "NEWS & LITERATURE"
LINK, AND GO TO THE "QUARTERLY/SEMI-ANNUAL OR ANNUAL REPORTS" HEADING.
IN ADDITION, THE FUNDS WILL FURNISH, WITHOUT CHARGE, COPIES OF THEIR MOST
RECENT ANNUAL AND SEMI-ANNUAL REPORTS TO ANY SHAREHOLDER UPON REQUEST.
TO REQUEST A COPY, PLEASE WRITE TO FIRST TRUST ADVISORS L.P. ("FIRST TRUST
ADVISORS" OR THE "ADVISOR"), AT 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON,
ILLINOIS 60187, OR CALL TOLL-FREE (800) 988-5891.
YOU MAY CALL TOLL-FREE (800) 988-5891 FOR INFORMATION ON HOW TO OBTAIN
DIRECTIONS TO BE ABLE TO ATTEND THE MEETING AND VOTE IN PERSON.
In order that your Shares may be represented at the Record Date,Meeting, you are
requested to:
o indicate your instructions on the proxy card;
o date and sign the proxy card;
o mail the proxy card promptly in the enclosed envelope which requires
no postage if mailed in the continental United States; and
o allow sufficient time for the proxy card to be received BY 12:00
NOON CENTRAL TIME, on WEDNESDAY, APRIL 22, 2020. (However, proxies
received after this date may still be voted in the event the Meeting
is adjourned or postponed to a later date.)
-2-
VOTING
As described further in the proposal, for each Fund, had
17,231,908 Shares outstanding. Sharesthe affirmative vote
of the holders of a plurality of the Shares present and entitled to vote at the
Meeting will be required to elect the specified nominee as the Class I Trustee
of that Fund are listedprovided a quorum is present. Abstentions and broker non-votes
(i.e., Shares held by brokers or nominees as to which (i) instructions have not
been received from the beneficial owners or the persons entitled to vote and
(ii) the broker or nominee does not have discretionary voting power on a
particular matter) will have no effect on the New York
Stock Exchange ("NYSE") underapproval of the ticker symbol FDEU. Shareholders of record on
the Record Date are entitled to one vote for each full Share the shareholder
owns and a proportionate fractional vote for any fraction of a Share the
shareholder owns.
For shareholders voting by mail, ifproposal.
If the enclosed proxy card is properly executed and returned in time to be
voted at the Meeting, the Shares represented thereby will be voted in accordance
with the instructions marked thereon, or, if no instructions are marked thereon,
will be voted in the discretion of the persons named on the proxy card.
Accordingly, unless instructions to the contrary are marked thereon, a properly
executed and returned proxy will be voted FOR the Proposal,election of the specified
nominee as the Class I Trustee and at the discretion of the named proxies on any
other matters that may properly come before the Meeting, as deemed appropriate.
Any shareholder who has given a proxy has the right to revoke it at any time
prior to its exercise either by attending the Meeting and voting his or her
Shares in person, or by timely submitting a letter of revocation or a
later-dated proxy to the applicable Fund at its address above. A list of
shareholders of record entitled to notice of and to be present and to vote at
the Meeting will be available at the Advisor's Austin, TexasWheaton, Illinois offices,
located at 500 W. 5th Street, Austin, Texas 78701,120 East Liberty Drive, Suite 400, Wheaton, Illinois 60187, for
inspection by any shareholder during regular business hours priorbeginning on the
second business day after notice is given of the Meeting, subject to
restrictions that may be imposed on a requesting shareholder on the Meeting.copying, use
or distribution of the information contained in the list. Shareholders will need
to show valid identification and proof of Share ownership to be admitted to the
Meeting or to inspect the list of shareholders.
Under the By-Laws of theeach Fund, a quorum is constituted by the presence in
person or by proxy of the holders of thirty-three and one-third percent
(33-1/3%) of the voting power of the outstanding Shares entitled to vote on a
matter. For the purposes of establishing whether a quorum is present with
respect to thea Fund, all Shares present and entitled to vote, including
abstentions and broker non-votes, shall be counted. Any meeting of shareholders
may be postponed prior to the meeting with notice to the shareholders entitled
to vote at that meeting. Any meeting of shareholders may, by action of the
chairman of the meeting, be adjourned to a time and place announced at the
meeting to permit further solicitation of proxies without further notice with
respect to one or more matters to be considered at such meeting, whether or not
a quorum is present with respect to such matter. In addition, upon motion of the
chairman of the meeting, the question of adjournment may be submitted to a vote
of the shareholders, and in that case, any adjournment must be approved by the
vote of holders of a majority of the Shares present and entitled to vote with
respect to the matter or matters adjourned, and without further notice if the
time and place of the adjourned meeting are announced at the meeting. Unless a
proxy is otherwise limited in this regard, any Shares present and entitled to
vote at a meeting, including broker non-votes, may, at the discretion of the
proxies named therein, be voted in favor of such an adjournment.
Broker-dealers holding Shares in "street name" for the benefit of their
customers and clients may request voting instructions from such customers and
clients. Pursuant to certain rules promulgated by the NYSE that govern voting by
such broker-dealers, a broker-dealer holding shares of record for a beneficial
owner may not exercise discretionary voting power with respect to certain
non-routine matters, including the approval of a new investment management
agreement.
The solicitation of proxies will be largely by mail, but may include
telephonic, electronic or oral communication by officers and service providers
of the Fund, as well as affiliates of such service providers. A proxy
solicitation firm, AST Fund Solutions, LLC, has also been engaged to provide
proxy solicitation services, including mail and tabulation services, as well as
services to facilitate mail, telephone and Internet voting, at a cost which is
expected to be approximately $58,500. This cost, as well as the cost of
preparing, printing and mailing the enclosed proxy, accompanying notice and this
Proxy Statement, and all other costs in connection with the solicitation of
proxies to be voted at the Meeting will be borne by Janus Capital Management LLC
("JCM"). JCM will also reimburse brokerage firms and others for their expenses
in forwarding proxy solicitation materials to the person(s) for whom they hold
Shares of the Fund.
-2-
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
SHAREHOLDER MEETING TO BE HELD ON APRIL 23, 2018. THIS PROXY STATEMENT IS
AVAILABLE ON THE INTERNET AT
HTTPS://WWW.FTPORTFOLIOS.COM/LOADCONTENT/GEADRCTZGHAY. THE FUND'S MOST RECENT
ANNUAL AND SEMI-ANNUAL REPORTS ARE ALSO AVAILABLE ON THE INTERNET AT
HTTPS://WWW.FTPORTFOLIOS.COM. TO FIND A REPORT, SELECT THE FUND UNDER THE
"CLOSED-END FUNDS" TAB, SELECT THE "NEWS & LITERATURE" LINK, AND GO TO THE
"QUARTERLY/SEMI-ANNUAL OR ANNUAL REPORTS" HEADING. IN ADDITION, THE FUND WILL
FURNISH, WITHOUT CHARGE, COPIES OF ITS MOST RECENT ANNUAL AND SEMI-ANNUAL
REPORTS TO ANY SHAREHOLDER UPON REQUEST. TO REQUEST A COPY, PLEASE WRITE TO
FIRST TRUST ADVISORS L.P., AT 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON,
ILLINOIS 60187, OR CALL TOLL-FREE (800) 988-5891.
YOU MAY CALL TOLL-FREE (800) 988-5891 FOR INFORMATION ON HOW TO OBTAIN
DIRECTIONS TO BE ABLE TO ATTEND THE MEETING AND VOTE IN PERSON.
-3-
PROPOSAL: APPROVAL OF A NEW INVESTMENT SUB-ADVISORY AGREEMENT FOR THE FUND
BACKGROUND AND REASON FOR VOTE
AtOUTSTANDING SHARES
On the Meeting, shareholders will be asked to approveRecord Date, each Fund had the New Sub-Advisory
Agreement for the Fund with Janus Capital Management LLC (previously defined
as"JCM"). Currently, Henderson Global Investors (North America) Inc. ("HGINA"),
an indirect wholly-owned subsidiaryfollowing number of Janus Henderson Group plc ("Janus
Henderson") and affiliate of JCM located at 311 S. Wacker Drive, Suite 6000,
Chicago, Illinois 60606, serves as the investment sub-adviser to the Fund
pursuant to an investment sub-advisory agreement among the Advisor, HGINA and
the Fund (the "Current Sub-Advisory Agreement"). In May 2017, the merger of
Henderson Group plc, the parent company of HGINA, with Janus Capital Group Inc.,
the parent company of JCM, resulted in the formation of Janus Henderson Group
plc, doing business as Janus Henderson Investors. As a result of various
organizational changes being effected in conjunction with this merger, the
transition from HGINA to JCM as the Fund's sub-adviser is being proposed. The
change in sub-adviser from HGINA to JCM may be deemed to be an "assignment" (as
defined in the Investment Company Act of 1940, as amended (the "1940 Act")) of
the Current Sub-Advisory Agreement. Section 15 of the 1940 Act requires, among
other things, that any investment advisory agreement, which includes an
investment sub-advisory agreement, provide for its automatic termination in the
event of its "assignment." Accordingly, because the Current Sub-Advisory
Agreement may automatically terminate as a result of the transition to JCM,
shareholders are being asked to approve a new investment sub-advisory agreement
among the Fund, the Advisor and JCM.
In anticipation of the transition of sub-advisory services from HGINA to
JCM, the Board held a meeting on January 18, 2018 (the "Board Meeting"), at
which, after careful consideration, including of presentations from
representatives of JCM (see "BOARD CONSIDERATIONS" below), the Trustees
determined that it would be in the best interests of the Fund for JCM to act as
the investment sub-adviser to the Fund. Accordingly, at the Board Meeting, the
Board, including a majority of the Trustees who are not "interested persons" (as
defined in the 1940 Act) (the "Independent Trustees") approved, subject to
shareholder approval, the New Sub-Advisory Agreement. It is important to note
that the management, operations, governance and investment functions of HGINA
and JCM are substantially the same. Further, the same portfolio management team
currently providing sub-advisory services to the Fund will continue to do so. In
addition, there will be no change to the sub-advisory fee rate.
INFORMATION ABOUT JCM
JCM is an investment adviser registered with the Securities and Exchange
Commission. JCM offers U.S. equity, global and international equity, fixed
income, asset allocation and alternative investment strategies. As of September
19, 2017, JCM had approximately $149 billion in assets under management on a
discretionary basis. JCM, through its predecessors, has provided investment
management services since 1969 and has been registered with the Securities and
Exchange Commission since 1978.
Janus Capital Group Inc. holds 95% of the membership interests of JCM; the
remaining 5% are held by Janus Management Holdings Corporation, a wholly-owned
subsidiary of Janus Capital Group Inc. Janus Capital Group Inc. is a
wholly-owned subsidiary of Janus Henderson, a publicly-traded company that is
listed on the NYSE and the Australian Securities Exchange. The address of each
of JCM, Janus Capital Group Inc., Janus Management Holdings Corporation and
Janus Henderson is 151 Detroit Street, Denver, Colorado 80206.
-4-
The names, positions with JCM and principal occupations of the persons who
are principal executive officers and directors of JCM are listed below:Shares
outstanding:
--------------------------------- -----------------------------------------------------------------
NAME POSITION(S) WITH JCM AND PRINCIPAL OCCUPATION
--------------------------------- -----------------------------------------------------------------
Enrique Chang Chief Investment Officer
--------------------------------- -----------------------------------------------------------------
Michael Drew Elder Senior Vice President; Head of North American Distribution
--------------------------------- -----------------------------------------------------------------
Brennan A. Hughes Chief Financial Officer
--------------------------------- -----------------------------------------------------------------
Bruce L. Koepfgen President
--------------------------------- -----------------------------------------------------------------
Kristin B. Mariani Chief Compliance Officer
--------------------------------- -----------------------------------------------------------------
Michelle R. Rosenberg Deputy General Counsel
--------------------------------- -----------------------------------------------------------------
Richard M. Weil Chief Executive Officer
--------------------------------- -----------------------------------------------------------------
The business address for each of the above is 151 Detroit Street, Denver,
Colorado 80206.
Similar Funds Advised or Sub-Advised by JCM
JCM manages the following two mutual funds which have investment
objectives and policies that are broadly similar to those of the Fund.
Information about the size of each such mutual fund and the contractual annual
rate of compensation to which JCM is entitled for its services as investment
adviser is set forth below:
------------------------------------------- ------------------------------------ ---------------------------------
TOTAL MANAGED ASSETS AS OF------------------------------------------------------------------------------- -------------- ---------------
TICKER SHARES
FUND DECEMBER 31, 2017 ANNUAL RATE OF COMPENSATION
------------------------------------------- ------------------------------------ ---------------------------------SYMBOL(1) OUTSTANDING
------------------------------------------------------------------------------- -------------- ---------------
Janus Henderson DividendMACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & Income Builder $159,340,000 0.75%INCOME FUND MFD 8,547,442
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND FEN 20,020,835
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST ENHANCED EQUITY INCOME FUND FFA 19,982,838
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST MORTGAGE INCOME FUND FMY 4,213,115
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND FEO 5,056,575
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND FGB 14,362,212
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND FIF 17,550,236
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST MLP AND ENERGY INCOME FUND FEI 47,007,240
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND FPF 60,765,997
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND FPL 25,699,753
------------------------------------------------------------------------------- -------------- ---------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND FDEU 17,231,908
------------------------------------------------------------------------------- -------------- ---------------
1 The Shares of each of the Funds are listed on the New York Stock Exchange
("NYSE") except for the first $1 billion;
Fund* 0.65% forShares of First Trust Energy Income and Growth
Fund, which are listed on the next $1 billion;
0.55% for the balance thereafter
------------------------------------------- ------------------------------------ ---------------------------------
Janus Henderson Global Equity Income $5,570,000,000 0.85% for the first $1 billion;
Fund** 0.65% for the next $1 billion;
0.60% for the balance thereafter
------------------------------------------- ------------------------------------ ---------------------------------NYSE American LLC.
*ForShareholders of record on the fiscal year ended June 30, 2017,Record Date are entitled to one vote for
each full Share the actual investment advisory
fee rate was 0.00%. JCM has contractually agreed to waive its investment
advisory fee and/or reimburse operating expenses to the extent that the fund's
total annual fund operating expenses (excluding administrative services fees
(including out-of-pocket costs), brokerage commissions, interest, dividends,
taxes, acquired fund fees and expenses, and extraordinary expenses) exceed 0.84%
until at least November 1, 2018.
**For the year ended December 31, 2017, the actual investment advisory fee
rate was 0.66%. JCM has contractually agreed to waive its investment advisory
fee and/or reimburse operating expenses to the extent that the fund's total
annual fund operating expenses (excluding administrative services fees
(including out-of-pocket costs), brokerage commissions, interest, dividends,
taxes, acquired fund fees and expenses, and extraordinary expenses) exceed 0.84%
until at least February 1, 2019.
PORTFOLIO MANAGEMENT
The transition to JCM is not expected to result in any changes to the
portfolio managers serving the Fund. The portfolio managers identified below are
currently responsible for providing day-to-day portfolio management services to
the Fund under the Current Sub-Advisory Agreement. It is expected that they will
continue to serve as portfolio managers to the Fund if shareholders approve the
New Sub-Advisory Agreement.
-5-
ALEX CROOKE
CO-HEAD OF EQUITIES - EMEA AND ASIA PACIFIC; PORTFOLIO MANAGER
Alex Crooke is Co-Head of Equities - Europe, the Middle East and Africa
(EMEA) and Asia Pacific (APAC) at Janus Henderson, a position he has held since
2018. Mr. Crooke is responsible for equities in the EMEA and APAC regions and is
a Portfolio Manager for the Global Equity Income and Global Dividend & Income
strategies. In addition, Mr. Crooke is a member of the Janus Henderson Investors
Executive Committee. Previously, he was head of Global Equity Income and
Specialist Equities from 2013. Mr. Crooke was recruited by Janus Henderson to
co-manage the UK assets of an investment trust in 1994 as an associate director.
He later became the fund manager responsible for a number of UK and Global
income orientated equity products. Mr. Crooke began his investment career with
Equitable Life Assurance Society in 1990 as a U.S. investment analyst. Mr.
Crooke holds a BSc (Hons) in physics and astrophysics from Manchester University
and is an associate member of the Society of Investment Professionals. He has 28
years of financial industry experience.
BEN LOFTHOUSE, CFA
HEAD OF GLOBAL EQUITY INCOME; PORTFOLIO MANAGER
Ben Lofthouse is Head of Global Equity Income at Janus Henderson, a
position he has held since 2018. Prior to this, he was a director, Global Equity
Income, and has been part of the Global Equity Income Team since joining the
company in 2004. Additionally, he is a Portfolio Manager and has managed a range
of equity income mandates since 2008. Prior to Janus Henderson, Mr. Lofthouse
worked as an accountant at PricewaterhouseCoopers where he started his career in
1998. Mr. Lofthouse graduated with a BA (Hons) in business economics from Exeter
University. He is a Chartered Accountant (ACA) and holds the Chartered Financial
Analyst designation. He has 20 years of financial industry experience.
THE CURRENT SUB-ADVISORY AGREEMENT
HGINA has served as the investment sub-adviser to the Fund since its
inception. Set forth below is information pertaining to the Current Sub-Advisory
Agreement.
----------------------------- --------------------------------------- ---------------------------------------
DATE OF CURRENT DATE/PURPOSE OF LAST SUBMISSION TO DATE/PURPOSE OF ACTION(S) BY BOARD
SUB-ADVISORY AGREEMENT SHAREHOLDERS SINCE BEGINNING OF LAST FISCAL YEAR
----------------------------- --------------------------------------- ---------------------------------------
September 24, 2015 The Current Sub-Advisory Agreement was September 11, 2017; Continuation of
approved by the initial shareholder of Current Sub-Advisory Agreement.
the Fund on July 27, 2015 in
connection with the launch of the
Fund.
----------------------------- --------------------------------------- ---------------------------------------
COMPARISON OF CERTAIN TERMS OF THE NEW SUB-ADVISORY AGREEMENT AND CURRENT
SUB-ADVISORY AGREEMENT
Below is a brief comparison of certain terms of the Current Sub-Advisory
Agreement to the corresponding terms of the New Sub-Advisory Agreement. Many of
the terms of the New Sub-Advisory Agreement and the Current Sub-Advisory
Agreement are substantially similar. However, the sub-adviser will be JCM rather
than HGINA, and various provisions have been updated to reflect this change. The
New Sub-Advisory Agreement will have a new effective date and initial term. If
approved by shareholders, the New Sub-Advisory Agreement will be effective upon
approval by shareholders and will remain in effect for two years (unless sooner
terminated in accordance with its terms); thereafter, it may be continued for
successive one-year periods as described below under "Continuance." In addition,
-6-
because they are no longer applicable, an expense reimbursement provision
pursuant to which HGINA agreed to pay the Advisor a portion of the Fund's
"organization costs" and certain "offering costs"shareholder owns and a reference to the Prior
Sub-Sub-Adviser (as defined below) have not been included in the New
Sub-Advisory Agreement, while, to provide clarification, provisions relating to
JCM's ability to retain certain affiliates to provide services through
participating affiliate arrangements have been added. The form of New
Sub-Advisory Agreement is attached to this Proxy Statement as Exhibit A.
Sub-Advisory Services. As HGINA does under the Current Sub-Advisory
Agreement, under the New Sub-Advisory Agreement, JCM will act as sub-adviser
for, and manage on a discretionary basis the investment and reinvestment of the
assets of the Fund's portfolio allocated to the sub-adviser by the Advisor from
time to time (the "Sub-Adviser's Strategy"), furnish an investment program in
respect of, make investment decisions for, and place orders for the purchase and
sale of securities or other assets for the Fund's investment portfolio in the
Sub-Adviser's Strategy, all on behalf of the Fund and subject to the supervision
of the Board and the Advisor. In addition, consistent with the Current
Sub-Advisory Agreement, JCM will provide U.S. regulatory and compliance
oversight with respect to the Fund's investment portfolio in the Sub-Adviser's
Strategy. Further, as is the case with HGINA under the Current Sub-Advisory
Agreement, under the New Sub-Advisory Agreement, JCM is required to monitor the
Fund's investments in the Sub-Adviser's Strategy and to comply with the
provisions of the Fund's Declaration of Trust and By-Laws and the stated
investment objective, policies and restrictions of the Fund.
Brokers, Dealers, Futures Commission Merchants, Banks and Other Agents and
Counterparties. As is the case under the Current Sub-Advisory Agreement with
respect to HGINA, the New Sub-Advisory Agreement provides that, unless otherwise
provided by the Advisor in writing, JCM is authorized to select the brokers,
dealers, futures commission merchants, banks or any other agents or
counterparties that will execute the purchases and sales of portfolio
investments for the Fund in the Sub-Adviser's Strategy, and directs JCM to use
its commercially reasonable efforts to obtain best execution in such a manner
that the Fund's total cost or proceeds in each transaction is the most favorable
under the circumstances, taking into account all appropriate factors, including,
among other things, price, dealer spread or commission, size and difficulty of
the transaction and research or other services provided.
Fees. The New Sub-Advisory Agreement will not result in changes to the
Fund's investment sub-advisory fees, nor will it result in changes to any of the
Fund's other fees. As is the case under the Current Sub-Advisory Agreement with
respect to HGINA, under the New Sub-Advisory Agreement, the Advisor will pay JCM
a portfolio management fee on a monthly basis that is equal to the annual rate
of 0.50% of the Fund's "Managed Assets" (i.e., the average daily gross asset
value of the Fund (which includes assets attributable to the Fund's leverage, if
any), minus the sum of the Fund's accrued and unpaid dividends on any
outstanding preferred shares, if any, and accrued liabilities (other than
liabilities representing leverage)). For purposes of determining Managed Assets,
the liquidation preference of any outstanding preferred shares of the Fund is
not treated as a liability. (Currently, the Fund has no outstanding preferred
shares.) A reference to the expense reimbursement provision that, as described
below is no longer applicable and not included in the New Sub-Advisory
Agreement, has been omitted.
For the Fund's last fiscal year, the aggregate amount of the sub-advisory
fee paid by the Advisor to HGINA was $2,162,308. In accordance with the terms of
an investment sub-sub-advisory agreement among the Fund, the Advisor, HGINA and
Henderson Investment Management Limited (the "Prior Sub-Sub-Adviser"), which, as
of September 11, 2017 is no longer in effect, during the Fund's last fiscal
year, HGINA paid the Prior Sub-Sub-Adviser, in the aggregate, sub-sub-advisory
fees equal to $0.
-7-
Additional Sub-Advisers; Participating Affiliate Arrangements. As is the
case under the Current Sub-Advisory Agreement with respect to HGINA, under the
New Sub-Advisory Agreement, subject to applicable requirements, JCM may retain
one or more additional sub-advisers at its own cost and expense for the purpose
of furnishing sub-advisory services with respect to the Fund. The Current
Sub-Advisory Agreement refers to the appointment of the Prior Sub-Sub-Adviser;
however, since no agreement with the Prior Sub-Sub-Adviser (or any other
additional sub-adviser) is currently in place, that reference has been omitted
from the New Sub-Advisory Agreement. In addition, to provide clarification, the
New Sub-Advisory Agreement includes provisions relating to JCM's ability, at its
own cost and expense, to retain affiliated investment managers through
participating affiliate arrangements to provide services to the Fund. Such
arrangements will in no way reduce the responsibilities or obligations of JCM
under the New Sub-Advisory Agreement and JCM will be responsible to the Fund for
all acts or omissions of any of its participating affiliates in connection with
the performance of JCM's duties thereunder. As described below under "Memorandum
of Understanding," HGINA currently utilizes, and JCM will continue to utilize,
the services of their affiliated investment manager, Henderson Global Investors
Limited ("HGIL"), through a participating affiliate arrangement.
Payment of Expenses. As is the case under the Current Sub-Advisory
Agreement with respect to HGINA, under the New Sub-Advisory Agreement, JCM
agrees to pay all its expenses incurred in connection with its activities under
such Agreement other than the cost of securities and other assets (including,
but not limited to, brokerage commissions, stamp duties, currency conversion
costs, and other transaction charges, if any) purchased or otherwise acquired,
or sold or disposed of, for the Fund, which will be paid by the Fund.
Expense Reimbursement. The Current Sub-Advisory Agreement (which was
entered into in conjunction with the launch of the Fund), includes a provision
pursuant to which HGINA agreed to pay the Advisor a portion of the Fund's
"organization costs" and certain "offering costs." However, that provision is no
longer relevant and has not been included in the New Sub-Advisory Agreement.
Sub-Adviser Marks. Under the Current Sub-Advisory Agreement, the Fund and
the Advisor acknowledge that associates of HGINA own the names "Henderson Global
Investors" and "Henderson", and all related names, marks, and trade dress
(collectively, the foregoing are referred to as the "Henderson Marks") and all
associated goodwill. Further, the Current Sub-Advisory Agreement sets forth
parameters relating to the Fund's and the Advisor's use of the Henderson Marks.
The New Sub-Advisory Agreement includes substantially similar provisions;
however, to reflect the change in sub-adviser, the Fund and the Advisor
acknowledge that associates of JCM own the names "Janus Henderson Group", "Janus
Henderson Investors", and "Janus Henderson" and all related names, marks, and
trade dress (collectively, the foregoing are referred to as the "Janus Henderson
Marks"), and the parameters set forth relate to the Fund's and the Advisor's use
of the Janus Henderson Marks.
Limitation of Liability. As is the case under the Current Sub-Advisory
Agreement with respect to HGINA, the New Sub-Advisory Agreement provides that
JCM will not be liable for, and the Fund and the Advisor will not take any
action against JCM to hold JCM liable for (a) any error of judgment or mistake
of law orproportionate fractional vote for any
loss suffered by the Fund or the Advisor (including, without
limitation, by reason of the purchase, sale or retention of any security) in
connection with the performance of JCM's duties under the Agreement or (b) any
loss, liability, expenses, or damages suffered or incurred by the Fund or the
Advisor in relation to the portfolio investment decisions for purchases and
sales of securities and other assets of the Fund with respect to investment
strategies not assigned to JCM (the "Advisor's Strategy"), including, without
limitation, by reason of any failure to follow investment policies or
restrictions of the Advisor's Strategy; however, with respect to (a) and (b),
-8-
JCM will be liable for a loss resulting from willful misfeasance, bad faith or
gross negligence on the part of JCM in the performance of its duties under such
Agreement, or by reason of its reckless disregard of its obligations and duties
under such Agreement.
Continuance. The Current Sub-Advisory Agreement was originally in effect
for an initial term of two years and may be continued thereafter for successive
one-year periods if such continuance is specifically approved at least annually
in the manner required by the 1940 Act and the rules and regulations thereunder
(after taking into effect any exemptive order, no-action assurances or other
relief, rule or regulation upon which the Fund may rely). If the shareholders of
the Fund approve the New Sub-Advisory Agreement, the New Sub-Advisory Agreement
will become effective on the date of such approval and will remain in effect for
two years (unless sooner terminated in accordance with such Agreement).
Thereafter, the New Sub-Advisory Agreement may be continued for successive
one-year periods if such continuance is specifically approved at least annually
in the manner required by the 1940 Act and the rules and regulations thereunder
(after taking into effect any exemptive order, no-action assurances or other
relief, rule or regulation upon which the Fund may rely).
Termination. As is the case under the Current Sub-Advisory Agreement with
respect to HGINA, the New Sub-Advisory Agreement provides for termination: (1)
automatically in the event of its assignment (as defined in the 1940 Act and
rules and regulations thereunder); (2) at any time without the payment of any
penalty by the Advisor or JCM upon 60 days' written notice to the other parties;
and (3) by action of the Board or by a votefraction of a majority ofShare the outstanding
voting securities (as defined in the 1940 Act and rules and regulations
thereunder) of the Fund upon 60 days' written notice to JCM without the payment
of any penalty. In addition, consistent with the corresponding provisions of the
Current Sub-Advisory Agreement, the New Sub-Advisory Agreement will be
terminable at any time without the payment of any penalty by the Advisor, the
Board or by vote of a majority of the outstanding voting securities (as defined
in the 1940 Act and rules and regulations thereunder) of the Fund in the event
that it is established by a court of competent jurisdiction that JCM or any of
its officers or directors have taken any action that results in a breach of the
material covenants of JCM set forth in the Agreement.
MEMORANDUM OF UNDERSTANDING
Pursuant to a memorandum of understanding ("MOU") by and between JCM and
HGIL, JCM will utilize the services of HGIL through a participating affiliate
arrangement to provide sub-advisory services to the Fund. This MOU is the same
arrangement currently utilized by HGINA and HGIL in connection with sub-advisory
services provided by HGINA under the Current Sub-Advisory Agreement. As is the
case with HGINA, JCM has a personnel-sharing arrangement with HGIL pursuant to
which JCM's portfolio managers will be responsible for the day-to-day management
of the Fund. Under this arrangement, HGIL and the portfolio managers are
considered "associated persons" of JCM (within the meaning set forth in the
Investment Advisers Act of 1940, as amended) and the portfolio managers will
render portfolio management, research, and other services to the Fund, subject
to the supervision of JCM. HGIL is a London-based, United Kingdom registered
global asset investment adviser that provides services to institutional, retail
clients, and high net-worth individuals. It launches and manages equity, fixed
income, balanced, and multi-asset mutual funds. HGIL invests in public equity,
fixed income, multi-asset and real estate markets across the globe and manages
pension funds. The firm utilizes a strong in-house research team to make its
investments. HGIL was founded in 1934 and, in addition to its London base of
operations, has additional offices in Boston, Edinburgh, U.K., Frankfurt,
Germany, and Gasperich, Luxembourg. There are no additional fees or expenses to
the Fund or its shareholders associated with the MOU.
-9-
BOARD CONSIDERATIONS
The Board of Trustees of the Fund, including the Independent Trustees,
unanimously approved the New Sub-Advisory Agreement. The Board approved the New
Sub-Advisory Agreement at a meeting held on January 18, 2018. The Board
determined that the New Sub-Advisory Agreement is in the best interests of the
Fund in light of the extent and quality of the services expected to be provided
and such other matters as the Board considered to be relevant in the exercise of
its reasonable business judgment.
HGINA currently serves as investment sub-adviser to the Fund pursuant to
the Current Sub-Advisory Agreement. In June and September 2017, Janus Henderson
Group plc, the parent company of both HGINA and JCM, informed the Board of its
intention to wind down the business of HGINA in 2018 and to transfer the Fund's
investment sub-advisory relationship from HGINA to JCM (the "Transfer"). The New
Sub-Advisory Agreement is proposed to effectuate the Transfer. In this regard,
the Board noted JCM's representation that the Transfer is not expected to result
in any material changes to the services provided to the Fund because the
management, operations, governance and investment management functions of HGINA
and JCM are substantially the same.
To reach its determination in approving the New Sub-Advisory Agreement,
the Board considered its duties under the 1940 Act, as well as under the general
principles of state law in reviewing and approving advisory contracts; the
requirements of the 1940 Act in such matters; the fiduciary duty of investment
advisors with respect to advisory agreements and compensation; the standards
used by courts in determining whether investment company boards have fulfilled
their duties; and the factors to be considered by the Board in voting on such
agreements. On December 27, 2017, counsel to the Independent Trustees provided
JCM with a request for information regarding JCM and the Transfer. At an
executive session held on January 18, 2018, as well as at the meeting held that
day, the Board, including the Independent Trustees, reviewed materials provided
by JCM in response to the request that, among other things, outlined the
services to be provided by JCM (including the relevant personnel responsible for
these services and their experience); the sub-advisory fee rate as compared to
fees charged to other clients of JCM; performance information for the Fund; the
nature of expenses to be incurred in providing services to the Fund and the
potential for economies of scale, if any; financial data on JCM; any fall-out
benefits to JCM; and information on JCM's compliance program. The Board applied
its business judgment to determine whether the arrangement among the Fund, the
Advisor and JCM would be a reasonable business arrangement from the Fund's
perspective as well as from the perspective of shareholders. The Board
determined that, given the totality of the information provided with respect to
the New Sub-Advisory Agreement, the Board had received sufficient information to
approve the New Sub-Advisory Agreement.
In reviewing the New Sub-Advisory Agreement, the Board considered the
nature, extent and quality of the services to be provided by JCM under the New
Sub-Advisory Agreement. With respect to the New Sub-Advisory Agreement, the
Board reviewed the materials provided by JCM and considered the services that
JCM would provide to the Fund, including JCM's day-to-day management of the
Fund's investments. In addition, at the January 18, 2018 meeting, the Board
received a presentation from representatives of JCM. In considering JCM's
management of the Fund, the Board noted that the same portfolio management team
currently providing sub-advisory services to the Fund under the Current
Sub-Advisory Agreement would continue to provide services to the Fund under the
New Sub-Advisory Agreement. The Board also noted JCM's statements that the
Transfer will not result in any diminution in the nature, quality and extent of
the services provided to the Fund, and that the principal purpose of the
Transfer is to maintain in all material aspects the same core investment
management team and functional and support operations as currently provided to
the Fund and its shareholders. In light of the information presented and
-10-
the considerations made, the Board concluded that the nature, extent and quality
of the services to be provided to the Fund by JCM under the New Sub-Advisory
Agreement are expected to be satisfactory.
The Board considered the sub-advisory fee rate to be payable under the New
Sub-Advisory Agreement for the services provided, noting that it would be the
same as the sub-advisory fee rate paid under the Current Sub-Advisory Agreement.
The Board noted that the sub-advisory fee would be paid by the Advisor from its
advisory fee. The Board considered information provided by JCM as to the fees it
charges to other funds with investment objectives and policies broadly similar
to those of the Fund, noting that the sub-advisory fee rate for the Fund was
lower than the fee rates charged to these other funds. The Board also noted
JCM's statement that JCM does not currently charge a lower advisory or
sub-advisory fee to any other client for which it provides comparable services.
Because the same portfolio management team that currently manages the
Fund's investment portfolio under the Current Sub-Advisory Agreement will
continue to manage the Fund's investment portfolio under the New Sub-Advisory
Agreement, the Board considered performance information for the Fund. The Board
noted the process it has established for monitoring the Fund's performance and
portfolio risk on an ongoing basis, which includes quarterly performance
reporting from the Advisor and the investment sub-advisor for the Fund. The
Board determined that this process continues to be effective for reviewing the
Fund's performance. The Board received and reviewed information comparing the
Fund's performance for the one-year period ended June 30, 2017 to the
performance of a peer group of funds (including open-end funds and
exchange-traded funds, in addition to a closed-end fund) compiled by Management
Practice, Inc. ("MPI"), an independent source (the "MPI Peer Group"), and to
that of a benchmark index. In reviewing the Fund's performance as compared to
the performance of the MPI Peer Group, the Board took into account certain
limitations with respect to creating a relevant peer group for the Fund,
including that (i) the Fund is unique in its composition, which makes assembling
peers with similar strategies and asset mix difficult; (ii) the peer group
includes open-end funds and index-based exchange-traded funds; and (iii) peer
funds may use different amounts and types of leverage with different costs
associated with them or may use no leverage. Based on the information provided
on net asset value performance, the Board noted that the Fund outperformed the
MPI Peer Group average for the one-year period ended June 30, 2017 and
underperformed the MSCI Europe Index for the one-year period ended June 30,
2017. The Board also received information on the Fund's historical trading
discount through June 30, 2017 and comparable information for the peer group.
On the basis of all the information provided on the fees and performance
of the Fund and the ongoing oversight by the Board, the Board concluded that the
sub-advisory fee rate was reasonable and appropriate in light of the nature,
extent and quality of the services to be provided by JCM under the New
Sub-Advisory Agreement.
The Board considered that the expenses to be incurred by JCM are primarily
fixed, and that JCM believes that expenses will remain approximately the same
for the next twelve months. The Board did not review the expected profitability
of JCM with respect to the Fund. The Board noted that the Advisor will pay JCM
from its advisory fee and its understanding that the Fund's sub-advisory fee
rate was the product of an arm's length negotiation. The Board considered
fall-out benefits that may be realized by JCM from its relationship with the
Fund, noting JCM's statement that, in respect of the Fund, JCM will pay for
investment research from its own resources and will not use soft dollars in
managing the Fund. The Board concluded that the character and amount of
potential fall-out benefits to JCM were not unreasonable.
Based on all of the information considered and the conclusions reached,
the Board, including the Independent Trustees, unanimously determined that the
-11-
terms of the New Sub-Advisory Agreement were fair and reasonable and that the
approval of the New Sub-Advisory Agreement is in the best interests of the Fund.
No single factor was determinative in the Board's analysis.
SHAREHOLDER APPROVAL AND REQUIRED VOTE
To become effective for the Fund, the New Sub-Advisory Agreement must be
approved by a vote of a majority of the outstanding voting securities of the
Fund. The "vote of a majority of the outstanding voting securities" of the Fund
is defined in the 1940 Act as the vote of the lesser of (i) 67% or more of the
Shares of the Fund present at the Meeting if the holders of more than 50% of the
outstanding Shares of the Fund are present in person or represented by proxy; or
(ii) more than 50% of the outstanding Shares of the Fund. For purposes of
determining the approval of the New Sub-Advisory Agreement, abstentions and
broker non-votes will have the effect of a vote against the Proposal.
IF YOU NEED ANY ASSISTANCE, OR HAVE ANY QUESTIONS REGARDING THE PROPOSAL
OR HOW TO VOTE YOUR SHARES, PLEASE CALL THE FUND'S PROXY SOLICITOR, AST FUND
SOLUTIONS, LLC AT (800) 284-1755 WEEKDAYS FROM 9:00 A.M. TO 10:00 P.M. EASTERN
TIME.
THE BOARD OF TRUSTEES RECOMMENDS THAT SHAREHOLDERS OF THE FUND
VOTE TO APPROVE THE NEW SUB-ADVISORY AGREEMENT.
-12-
ADDITIONAL INFORMATION
SHARE OWNERSHIP OF CERTAIN BENEFICIAL OWNERSshareholder owns.
To the knowledge of the Board of Trustees of each Fund, as of the Record
Date, no single shareholder or "group" (as that term is used in Section 13(d) of
the Securities Exchange Act of 1934, as amended (the "1934 Act")) beneficially
owned more than 5% of the Fund's outstanding Shares, except as described in the
following table. A control person is one who owns, either directly or
indirectly, more than 25% of the voting securities of thea Fund or otherwise
acknowledges the existence of control. A party that controls thea Fund may be able
to significantly affect the outcome of any item presented to shareholders for
approval. Information as to beneficial ownership of Shares, including percentage
of outstanding Shares beneficially owned, is based on (1) securities position
listing reports as of the Record Date and (2) reports filed with the Securities
and Exchange Commission ("SEC") by shareholders.shareholders on the dates indicated in such
filings. The Fund doesFunds do not have any knowledge of the identity of the ultimate
beneficiaries of the Shares listed below.
-4-
BENEFICIAL OWNERSHIP OF SHARES
----------------------------------------------------- ------------------------------ ----------------------------------
NAME AND ADDRESS SHARES BENEFICIALLY % OF OUTSTANDING SHARES
OF BENEFICIAL OWNER OWNED BENEFICIALLY OWNED
-----------------------------------------------------------------------------------------------------------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
National Financial Services LLC 1,498,235 Shares 17.53%
499 Washington Blvd.
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave. 910,594 Shares 10.65%
Omaha, NE 68154
----------------------------------------------------- ------------------------------ ----------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 779,792 Shares 9.12%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated 698,692 Shares 8.17%
4804 Deer Lake Drive E.
Jacksonville, FL 32246
----------------------------------------------------- ------------------------------ ----------------------------------
Morgan Stanley Smith Barney LLC 649,014 Shares 7.59%
1300 Thames Street, 6th Floor
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
RBC Capital Markets, LLC
60 S. 6th Street - P09 591,457 Shares 6.92%
Minneapolis, MN 55402
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 500,117 Shares 5.85%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
Pershing LLC
One Pershing Plaza 494,950 Shares 5.79%
Jersey City, NJ 07399
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND:
-----------------------------------------------------------------------------------------------------------------------
Wells Fargo Clearing Services, LLC 2,647,260 Shares 13.22%
1 N. Jefferson Ave.
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 2,304,527 Shares 11.51%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 1,887,347 Shares 9.43%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 1,839,523 Shares 9.19%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
Pershing LLC
One Pershing Plaza 1,365,531 Shares 6.82%
Jersey City, NJ 07399
----------------------------------------------------- ------------------------------ ----------------------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated
4804 Deer Lake Drive E. 1,117,735 Shares 5.58%
Jacksonville, FL 32246
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave 1,084,639 Shares 5.42%
Omaha, NE 68154
----------------------------------------------------- ------------------------------ ----------------------------------
-5-
----------------------------------------------------- ------------------------------ ----------------------------------
NAME AND ADDRESS SHARES BENEFICIALLY % OF OUTSTANDING SHARES
OF BENEFICIAL OWNER OWNED BENEFICIALLY OWNED
----------------------------------------------------- ------------------------------ ---------------------------------------------------------------------------------------------------------------------------------------------------------
FIRST TRUST ENHANCED EQUITY INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC 3,869,335 Shares 22.45%
1300 Thames Street
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
2801 Market Street 3,264,1881 N. Jefferson Ave. 4,060,693 Shares 18.94%20.32%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
UBS Financial Services Inc.
1000 Harbor Blvd 1,957,769 Shares 11.36%
Weehawken, NJ 07086
----------------------------------------------------- ------------------------------ ----------------------------------
Raymond James & Associates, Inc.
880 S. Carillon Parkway 1,355,4513,536,262 Shares 7.87%17.70%
St. Petersburg, FL 33716
----------------------------------------------------- ------------------------------ ----------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 2,769,537 Shares 13.86%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 1,305,880 Shares 6.54%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
RBC Capital Markets, LLC
60 S. 6th Street - P09 978,3451,170,198 Shares 5.68%5.86%
Minneapolis, MN 55402
----------------------------------------------------- ------------------------------ ----------------------------------
The Bank of New York Mellon
525 William Penn Place
Suite 153-0400 1,009,298 Shares 5.05%
Pittsburgh, PA 15259
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST MORTGAGE INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
Sit Investment Associates, Inc.(1)
Sit Fixed Income Advisors II, LLC(1)
3300 IDS Center 1,757,645 Shares(1) 41.72%(1)
80 South Eighth Street
Minneapolis, MN 55402
----------------------------------------------------- ------------------------------ ----------------------------------
The Northern Trust Company
801 S. Canal Street 1,070,093 Shares 25.40%
Chicago, IL 60607
----------------------------------------------------- ------------------------------ ----------------------------------
1607 Capital Partners, LLC(2)
13 S. 13th Street, Suite 400 571,025 Shares(2) 13.55%(2)
Richmond, VA 23219
and
The Walt Disney Company Retirement Plan Master Trust(2)
500 South Buena Vista Street 358,541 Shares(2) 8.51%(2)
Burbank, CA 91521-0500
----------------------------------------------------- ------------------------------ ----------------------------------
State Street Bank and Trust Company
1776 Heritage Drive 427,442 Shares 10.15%
North Quincy, MA 02171
----------------------------------------------------- ------------------------------ ----------------------------------
Edward D. Jones & Co. 410,086 Shares 9.73%
201 Progress Parkway
Maryland Heights, MO 63043
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC 278,084 Shares 6.60%
499 Washington Blvd.
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
(1) Information is according to Amendment No. 16 to Schedule 13D filed with
the SEC pursuant to a joint filing agreement on January 21, 2020. Such
filing states that the reporting persons have shared voting power and
shared dispositive power with respect to the Shares held.
(2) Information is according to Amendment No. 8 to Schedule 13G filed with the
SEC pursuant to a joint filing agreement on February 14, 2020. Such filing
states that (a) 1607 Capital Partners, LLC, an investment adviser, is the
beneficial owner of Shares based on having voting power which includes the
power to vote, or to direct the voting of, such securities and investment
power which includes the power to dispose, or to direct the disposition
of, such securities and (b) The Walt Disney Company Retirement Plan Master
Trust is a client of 1607 Capital Partners, LLC and is the beneficial
owner of Shares solely due to being able to terminate without condition
the investment management agreement with 1607 Capital Partners, LLC in
less than sixty days.
-6-
----------------------------------------------------- ------------------------------ ----------------------------------
NAME AND ADDRESS SHARES BENEFICIALLY % OF OUTSTANDING SHARES
OF BENEFICIAL OWNER OWNED BENEFICIALLY OWNED
-----------------------------------------------------------------------------------------------------------------------
Wells Fargo Bank, National Association 257,043 Shares 6.10%
550 South 4th Street
Minneapolis, MN 55415
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND:
-----------------------------------------------------------------------------------------------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 964,643 Shares 19.08%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
Lazard Asset Management LLC(1)
30 Rockefeller Plaza 702,151 Shares(1) 13.87%(1)
New York, NY 10112
----------------------------------------------------- ------------------------------ ----------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 472,839 Shares 9.35%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 383,406 Shares 7.58%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 370,661 Shares 7.33%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
The Northern Trust Company
801 S. Canal Street 296,072 Shares 5.86%
Chicago, IL 60607
----------------------------------------------------- ------------------------------ ----------------------------------
State Street Bank and Trust Company
1776 Heritage Drive 282,107 Shares 5.58%
North Quincy, MA 02171
----------------------------------------------------- ------------------------------ ----------------------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated
4804 Deer Lake Drive E. 268,440 Shares 5.31%
Jacksonville, FL 32246
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave. 267,521 Shares 5.29%
Omaha, NE 68154
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND:
-----------------------------------------------------------------------------------------------------------------------
National Financial Services LLC
499 Washington Blvd. 2,520,644 Shares 17.55%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 2,440,883 Shares 17.00%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
Raymond James & Associates, Inc.
880 Carillon Parkway 1,206,972 Shares 8.40%
St. Petersburg, FL 33716
----------------------------------------------------- ------------------------------ ----------------------------------
Pershing LLC
One Pershing Plaza 1,152,024 Shares 8.02%
Jersey City, NJ 07399
----------------------------------------------------- ------------------------------ ----------------------------------
Stifel, Nicolaus & Company, Incorporated
200 Regency Forest Drive 974,569 Shares 6.79%
Cary, NC 27518
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave. 921,870 Shares 6.42%
Omaha, NE 68154
----------------------------------------------------- ------------------------------ ----------------------------------
LPL Financial Corporation
1055 LPL Way 842,156 Shares 5.86%
Fort Mill, SC 29715
----------------------------------------------------- ------------------------------ ----------------------------------
(1) Information is according to Schedule 13G/A filed with the SEC on February
10, 2020. Such filing states that the reporting person has (a) sole voting
power with respect to 496,079 Shares and (b) sole dispositive power with
respect to 702,151 Shares.
-7-
----------------------------------------------------- ------------------------------ ----------------------------------
NAME AND ADDRESS SHARES BENEFICIALLY % OF OUTSTANDING SHARES
OF BENEFICIAL OWNER OWNED BENEFICIALLY OWNED
-----------------------------------------------------------------------------------------------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 792,397 Shares 5.52%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
Nova R. Wealth, Inc.(1)
6711 West 121st Street 784,883.56 Shares(1) 5.5%(1)
Overland Park, KS 66209
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 3,709,456 Shares 21.14%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 1,903,857 Shares 10.85%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
The Bank of New York Mellon
525 William Penn Place, Suite 153-0400 1,440,819 Shares 8.21%
Pittsburgh, PA 15259
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 1,351,600 Shares 7.70%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
Advisors Asset Management, Inc.(2)
18925 Base Camp Road 1,064,241 Shares(2) 6.064%(2)
Monument, CO 80132
----------------------------------------------------- ------------------------------ ----------------------------------
Raymond James & Associates, Inc.
880 Carillon Parkway 963,063 Shares 5.49%
St. Petersburg, FL 33716
----------------------------------------------------- ------------------------------ ----------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 934,227 Shares 5.32%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave. 905,412 Shares 5.16%
Omaha, NE 68154
----------------------------------------------------- ------------------------------ ----------------------------------
RBC Capital Markets, LLC
60 S. 6th Street - P09 904,383 Shares 5.15%
Minneapolis, MN 55402
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST MLP AND ENERGY INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 17,935,009 Shares 38.15%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 3,167,123 Shares 6.74%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
Raymond James & Associates, Inc.
880 Carillon Parkway 2,375,570 Shares 5.05%
St. Petersburg, FL 33716
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 22,900,822 Shares 37.69%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 5,539,402 Shares 9.12%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
(1) Information is according to Schedule 13G filed with the SEC on February 6,
2018.
(2) Information is according to Amendment No. 1 to Schedule 13G filed with the
SEC on February 13, 2020. According to such filing, the reporting person
holds (a) sole voting power with respect to 1,056,659 Shares and (b) sole
dispositive power with respect to 1,064,241 Shares.
-8-
----------------------------------------------------- ------------------------------ ----------------------------------
NAME AND ADDRESS SHARES BENEFICIALLY % OF OUTSTANDING SHARES
OF BENEFICIAL OWNER OWNED BENEFICIALLY OWNED
-----------------------------------------------------------------------------------------------------------------------
National Financial Services LLC
499 Washington Blvd. 3,594,489 Shares 5.92%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
RBC Capital Markets, LLC
60 S. 6th Street - P09 3,218,423 Shares 5.30%
Minneapolis, MN 55402
----------------------------------------------------- ------------------------------ ----------------------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated
4804 Deer Lake Drive E. 872,2033,129,672 Shares 5.06%5.15%
Jacksonville, FL 32246
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC
1300 Thames Street, 6th Floor 6,504,668 Shares 25.31%
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 2,476,127 Shares 9.63%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
American Enterprise Investment Services Inc.
901 3rd Avenue South 1,684,043 Shares 6.55%
Minneapolis, MN 55474
----------------------------------------------------- ------------------------------ ----------------------------------
Pershing LLC
One Pershing Plaza 1,589,348 Shares 6.18%
Jersey City, NJ 07399
----------------------------------------------------- ------------------------------ ----------------------------------
TD Ameritrade Clearing, Inc.
200 S. 108th Ave. 1,483,824 Shares 5.77%
Omaha, NE 68154
----------------------------------------------------- ------------------------------ ----------------------------------
Charles Schwab & Co., Inc.
2423 E. Lincoln Drive 1,385,351 Shares 5.39%
Phoenix, AZ 85016
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 1,326,420 Shares 5.16%
St. Louis, MO 63103
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND:
-----------------------------------------------------------------------------------------------------------------------
Morgan Stanley Smith Barney LLC 2,568,288 Shares 14.90%
1300 Thames Street, 6th Floor
Baltimore, MD 21231
----------------------------------------------------- ------------------------------ ----------------------------------
Wells Fargo Clearing Services, LLC
1 N. Jefferson Ave. 2,506,219 Shares 14.54%
St. Louis, MO 63103
----------------------------------------------------- ------------------------------ ----------------------------------
Raymond James & Associates, Inc.
880 Carillon Parkway 2,493,680 Shares 14.47%
St. Petersburg, FL 33716
----------------------------------------------------- ------------------------------ ----------------------------------
UBS Financial Services Inc.
1000 Harbor Blvd. 1,223,410 Shares 7.10%
Weehawken, NJ 07086
----------------------------------------------------- ------------------------------ ----------------------------------
National Financial Services LLC
499 Washington Blvd. 1,164,613 Shares 6.76%
Jersey City, NJ 07310
----------------------------------------------------- ------------------------------ ----------------------------------
-13--9-
SHARE OWNERSHIPPROPOSAL: ELECTION OF ONE (1) CLASS I TRUSTEE OF EACH FUND
ONE (1) CLASS I TRUSTEE IS TO BE ELECTED TO THE BOARD OF TRUSTEES AND EXECUTIVE OFFICERS
The numberOF EACH FUND
BY HOLDERS OF SHARES OF SUCH FUND. CURRENT TRUSTEE ROBERT F. KEITH IS THE
NOMINEE FOR ELECTION AS THE CLASS I TRUSTEE BY SHAREHOLDERS OF EACH FUND FOR A
THREE-YEAR TERM.
Each Fund has established a staggered Board of sharesTrustees pursuant to its
By-Laws, and, accordingly, Trustees are divided into the following three (3)
classes: Class I, Class II and Class III. Robert F. Keith is currently the Class
I Trustee of each Fund for a term expiring at the Meeting or until his successor
is elected and qualified. If elected, Mr. Keith will hold office for a
three-year term expiring at each Fund's 2023 annual meeting of shareholders.
Richard E. Erickson, Thomas R. Kadlec, James A. Bowen and Niel B. Nielson are
current and continuing Trustees. Dr. Erickson and Mr. Kadlec are the Class II
Trustees for a term expiring at each Fund's 2021 annual meeting of shareholders.
Mr. Bowen and Mr. Nielson are the Class III Trustees for a term expiring at each
Fund's 2022 annual meeting of shareholders. Each Trustee serves until his
successor is elected and qualified, or until he earlier resigns or is otherwise
removed.
REQUIRED VOTE: For each Fund, the nominee for election as the Class I
Trustee must be elected by the affirmative vote of the holders of a plurality of
the Shares of the Fund, beneficially owned ascast in person or by proxy at the Meeting and entitled
to vote thereon, provided a quorum is present. Abstentions and broker non-votes
will have no effect on the approval of December 31,
2017the proposal. Proxies cannot be voted for
a greater number of persons than the number of seats open for election.
Unless you give contrary instructions on your proxy card, your Shares will
be voted FOR the election of the nominee listed if your proxy card has been
properly executed and timely received by (a)the applicable Fund. If the nominee
should withdraw or otherwise become unavailable for election prior to the
Meeting, the proxies named on your proxy card intend to vote FOR any substitute
nominee recommended by a Fund's Board of Trustees in accordance with the Fund's
procedures.
THE BOARD OF TRUSTEES OF EACH FUND UNANIMOUSLY RECOMMENDS THAT
SHAREHOLDERS VOTE FOR THE ELECTION OF THE NOMINEE.
-10-
MANAGEMENT
MANAGEMENT OF THE FUNDS
The general supervision of the duties performed for each Fund under its
respective investment management agreement with the Advisor is the
responsibility of that Fund's Board of Trustees. The Trustees set broad policies
for the Funds and choose the Funds' officers. The following is a list of the
Trustees (includingand executive officers of each Fund and a statement of their present
positions and principal occupations during the Independent Trustees)past five years, the number of
portfolios each Trustee oversees and the other trusteeships or directorships
each Trustee whoholds, if applicable. As noted above, each Fund has established a
staggered Board of Trustees consisting of five (5) Trustees divided into three
(3) classes: Class I, Class II and Class III. The length of the term of office
of each Trustee is generally three years, and when each Trustee's term begins
and ends depends on the Trustee's designated class and when the Trustee's
successor is elected and qualified. James A. Bowen is deemed an "interested
person" (as that term is defined in the Investment Company Act of 1940, as
amended ("1940 Act")) ("Interested Trustee") of the Funds due to his position as
Chief Executive Officer of the Advisor. Except for Mr. Bowen, each Trustee is
not an Independent Trustee (the "Interested Trustee")"interested person" (as that term is defined in the 1940 Act) and (b)is
therefore referred to as an "Independent Trustee." The officers of the Funds
serve indefinite terms.
The remainder of this page is intentionally left blank.
-11-
The following tables identify the Trustees and executive officers of the
Fund as a group,Funds. Unless otherwise indicated, the address of all persons is set forth below.c/o First Trust
Advisors L.P., 120 East Liberty Drive, Suite 400, Wheaton, IL 60187.
-------------------------------------------------------- ---------------------------
NAMEINDEPENDENT TRUSTEES
-----------------------------------------------------------------------------------------------------------------------
OTHER
NUMBER OF SHARES
-------------------------------------------------------- ---------------------------
-------------------------------------------------------- ---------------------------TRUSTEESHIPS
PORTFOLIOS IN OR
TERM OF OFFICE(1) THE FIRST TRUST DIRECTORSHIPS
POSITION(S) AND YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX HELD BY TRUSTEE
NAME AND HELD WITH ELECTED OR DURING PAST 5 OVERSEEN BY DURING PAST 5
YEAR OF BIRTH FUNDS APPOINTED(2) YEARS TRUSTEE YEARS
-----------------------------------------------------------------------------------------------------------------------
Richard E. Erickson Trustee Class II Physician; Officer, Wheaton 172 None
1951 Orthopedics; Limited
Since 2004 Partner, Gundersen Real
Estate Limited Partnership
(June 1992 to December
2016); Member, Sportsmed LLC
(April 2007 to November
2015)
-----------------------------------------------------------------------------------------------------------------------
Thomas R. Kadlec Trustee Class II President, ADM Investor 172 Director of ADM
1957 Services, Inc. (Futures Investor
Since 2004 Commission Merchant) Services, Inc.,
ADM Investor
Services
International,
Futures Industry
Association and
National Futures
Association
-----------------------------------------------------------------------------------------------------------------------
Robert F. Keith Trustee Class I President, Hibs Enterprises 172 Director of Trust
1956 Nominee (Financial and Management Company of
Consulting) Illinois
Since 2006
-----------------------------------------------------------------------------------------------------------------------
Niel B. Nielson Trustee Class III Senior Advisor (August 2018 172 None
1954 to present), Managing
Since 2004 Director and Chief Operating
Officer (January 2015 to
August 2018), Pelita Harapan
Educational Foundation
(Educational Products and
Services); President and
Chief Executive Officer (June
2012 to September 2014),
Servant Interactive LLC
(Educational Products and
Services); President and
Chief Executive Officer (June
2012 to September 2014), Dew
Learning LLC (Educational
Products and Services)
-----------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
-------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------
OTHER
NUMBER OF TRUSTEESHIPS
PORTFOLIOS IN OR
TERM OF OFFICE(1) THE FIRST TRUST DIRECTORSHIPS
POSITION(S) AND YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX HELD BY TRUSTEE
NAME AND HELD WITH ELECTED OR DURING PAST 5 OVERSEEN BY DURING PAST 5
YEAR OF BIRTH FUNDS APPOINTED(2) YEARS TRUSTEE YEARS
-----------------------------------------------------------------------------------------------------------------------
James A. Bowen(3) Trustee and Class III Chief Executive Officer, 172 None
1955 Chairman of First Trust Advisors L.P.
the Board Since 2004 and First Trust Portfolios
L.P.; Chairman of the Board
of Directors, BondWave LLC
(Software Development
Company) and Stonebridge
Advisors LLC (Investment
Advisor)
-----------------------------------------------------------------------------------------------------------------------
-12-
EXECUTIVE OFFICERS
-----------------------------------------------------------------------------------------------------------------------
TERM OF OFFICE(1)
NAME AND POSITIONS AND AND LENGTH OF PRINCIPAL OCCUPATION(S)
YEAR OF BIRTH OFFICES WITH FUNDS SERVICE(2) DURING PAST 5 YEARS
-----------------------------------------------------------------------------------------------------------------------
James M. Dykas President and Indefinite Term Managing Director and Chief Financial Officer
1966 Chief Executive (January 2016 to present), Controller
Officer Since 2012 (January 2011 to January 2016), Senior Vice
President (April 2007 to January 2016), First
Trust Advisors L.P. and First Trust Portfolios
L.P.; Chief Financial Officer (January 2016 to
present), BondWave LLC (Software Development
Company) and Stonebridge Advisors LLC
(Investment Advisor)
-----------------------------------------------------------------------------------------------------------------------
Donald P. Swade Treasurer, Chief Indefinite Term Senior Vice President (July 2016 to present),
1972 Financial Officer Vice President (April 2012 to July 2016),
and Chief Since 2016 First Trust Advisors L.P. and First Trust
Accounting Officer Portfolios L.P.
-----------------------------------------------------------------------------------------------------------------------
W. Scott Jardine Secretary and Indefinite Term General Counsel, First Trust Advisors L.P. and
1960 Chief Legal First Trust Portfolios L.P.; Secretary and
Officer Since 2004 General Counsel, BondWave LLC (Software
Development Company); Secretary, Stonebridge
Advisors LLC (Investment Advisor)
-----------------------------------------------------------------------------------------------------------------------
Daniel J. Lindquist Vice President Indefinite Term Managing Director, First Trust Advisors L.P.
1970 and First Trust Portfolios L.P.
Since 2005
-----------------------------------------------------------------------------------------------------------------------
Kristi A. Maher Chief Compliance Indefinite Term Deputy General Counsel, First Trust Advisors
1966 Officer and L.P. and First Trust Portfolios L.P.
Assistant Chief Compliance
Secretary Officer since
2011 and
Assistant
Secretary since
2004
-----------------------------------------------------------------------------------------------------------------------
(1) Currently, Robert F. Keith, as the Class I Trustee, is serving a term for
each of the Funds until the Meeting or until his successor is elected and
qualified. Richard E. Erickson and Thomas R. Kadlec, as the Class II
Trustees, are each serving a term for each of the Funds until the Funds'
2021 annual meetings of shareholders or until their respective successors
are elected and qualified. James A. Bowen None
-------------------------------------------------------- ---------------------------and Niel B. Nielson, as the
Class III Trustees, are each serving a term for each of the Funds until
the Fund's 2022 annual meetings of shareholders or until their respective
successors are elected and qualified. Executive officers of the Funds have
an indefinite term.
(2) For executive officers, unless otherwise specified, length of service
represents the year the person first became an executive officer of a
Fund. Except as otherwise provided below, all Trustees and executive
officers were elected or appointed (i) in 2004 for the then-existing
Funds, (ii) in 2005 for First Trust Mortgage Income Fund, (iii) in 2006
for First Trust/Aberdeen Emerging Opportunity Fund, (iv) in 2007 for First
Trust Specialty Finance and Financial Opportunities Fund, (v) in 2011 for
First Trust Energy Infrastructure Fund, (vi) in 2012 for First Trust MLP
and Energy Income Fund, (vii) in 2013 for First Trust Intermediate
Duration Preferred & Income Fund and First Trust New Opportunities MLP &
Energy Fund and (viii) in 2015 for First Trust Dynamic Europe Equity
Income Fund. Robert F. Keith was appointed Trustee of all then-existing
funds in the First Trust Fund Complex in June 2006. James M. Dykas was
elected (a) Treasurer, Chief Financial Officer and Chief Accounting
Officer of all then-existing funds in the First Trust Fund Complex in
January 2012, effective January 23, 2012 and (b) President and Chief
Executive Officer of all then-existing funds in the First Trust Fund
Complex in December 2015, effective January 2016. Donald P. Swade was
elected Treasurer, Chief Financial Officer and Chief Accounting Officer of
all then-existing funds in the First Trust Fund Complex in December 2015,
effective January 2016. Daniel J. Lindquist was elected Vice President of
all then-existing funds in the First Trust Fund Complex on December 12,
2005. Kristi A. Maher was elected Chief Compliance Officer of all
then-existing funds in the First Trust Fund Complex in December 2010,
effective January 1, 2011; before January 1, 2011, W. Scott Jardine served
as Chief Compliance Officer.
(3) Mr. Bowen is deemed an "interested person" of the Funds due to his
position as Chief Executive Officer of First Trust Advisors L.P.,
investment advisor of the Funds.
UNITARY BOARD LEADERSHIP STRUCTURE
The same five persons serve as Trustees on each Fund's Board of Trustees
and on the boards of all other funds in the First Trust Fund Complex (the "First
Trust Funds"), which is known as a "unitary" board leadership structure. The
unitary board structure was adopted for the First Trust Funds because of the
efficiencies it achieves with respect to the governance and oversight of the
First Trust Funds. Each First Trust Fund is subject to the rules and regulations
of the 1940 Act (and other applicable securities laws), which means that many of
the First Trust Funds face similar issues with respect to certain of their
fundamental activities, including risk management, portfolio liquidity,
portfolio valuation and financial reporting. In addition, all of the First Trust
Funds that are closed-end funds (the "First Trust Closed-end Funds") are managed
by the Advisor and, except for First Trust Intermediate Duration Preferred &
-13-
Income Fund and First Trust Dynamic Europe Equity Income Fund, they employ
common service providers for custody, fund accounting, administration and
transfer agency that provide substantially similar services to the First Trust
Closed-end Funds pursuant to substantially similar contractual arrangements.
Because of the similar and often overlapping issues facing the First Trust
Funds, including among the First Trust Closed-end Funds, the Board of Trustees
of each of the First Trust Funds (such Boards of Trustees referred to herein
collectively as the "Board") believes that maintaining a unitary board structure
promotes efficiency and consistency in the governance and oversight of all First
Trust Funds and reduces the costs, administrative burdens and possible conflicts
that may result from having multiple boards. In adopting a unitary board
structure, the Trustees seek to provide effective governance through
establishing a board the overall composition of which will, as a body, possess
the appropriate skills, diversity, independence and experience to oversee the
business of the First Trust Funds.
Annually, the Board reviews its governance structure and the committee
structures, their performance and functions and reviews any processes that would
enhance Board governance over the Funds' business. The Board has determined that
its leadership structure, including the unitary board and committee structure,
is appropriate based on the characteristics of the funds it serves and the
characteristics of the First Trust Fund Complex as a whole. The Board is
composed of four Independent Trustees and one Interested Trustee. The Interested
Trustee serves as the Chairman of the Board of each Fund. An individual who is
not a Trustee serves as President and Chief Executive Officer of each Fund.
In order to streamline communication between the Advisor and the
Independent Trustees and create certain efficiencies, the Board has a Lead
Independent Trustee who is responsible for: (i) coordinating activities of the
Independent Trustees; (ii) working with the Advisor, Fund counsel and the
independent legal counsel to the Independent Trustees to determine the agenda
for Board meetings; (iii) serving as the principal contact for and facilitating
communication between the Independent Trustees and the Funds' service providers,
particularly the Advisor; and (iv) any other duties that the Independent
Trustees may delegate to the Lead Independent Trustee. The Lead Independent
Trustee is selected by the Independent Trustees and serves a three-year term or
until his successor is selected. Niel B. Nielson currently serves as the Lead
Independent Trustee.
The Board has established four standing committees (as described below)
and has delegated certain of its responsibilities to those committees. The Board
and its committees meet frequently throughout the year to oversee the Funds'
activities, review contractual arrangements with and performance of service
providers, oversee compliance with regulatory requirements, and review Fund
performance. The Independent Trustees are represented by independent legal
counsel at all Board and committee meetings (other than meetings of the Dividend
and Pricing Committee). Generally, the Board acts by majority vote of all the
Trustees, except where a different vote is required by applicable law.
The three Committee Chairmen and the Lead Independent Trustee currently
rotate every three years in serving as Chairman of the Audit Committee, the
Nominating and Governance Committee or the Valuation Committee, or as Lead
Independent Trustee. The Lead Independent Trustee and the immediately preceding
Lead Independent Trustee also serve on the Executive Committee with the
Interested Trustee.
Including the Funds, the First Trust Fund Complex includes: 15 closed-end
funds advised by First Trust Advisors; First Trust Series Fund, an open-end
management investment company with three portfolios advised by First Trust
Advisors; First Trust Variable Insurance Trust, an open-end management
investment company with three portfolios advised by First Trust Advisors; and
First Trust Exchange-Traded Fund, First Trust Exchange-Traded Fund II, First
Trust Exchange-Traded Fund III, First Trust Exchange-Traded Fund IV, First Trust
Exchange-Traded Fund V, First Trust Exchange-Traded Fund VI, First Trust
-14-
Exchange-Traded Fund VII, First Trust Exchange-Traded Fund VIII, First Trust
Exchange-Traded AlphaDEX(R) Fund and First Trust Exchange-Traded AlphaDEX(R)
Fund II, exchange-traded funds with, in the aggregate, 151 portfolios (each such
portfolio, an "ETF" and each such exchange-traded fund, an "ETF Trust") advised
by First Trust Advisors.
The four standing committees of the Board are: the Executive Committee
(also known as the Dividend and Pricing Committee), the Nominating and
Governance Committee, the Valuation Committee and the Audit Committee. The
Executive Committee, which meets between Board meetings, is authorized to
exercise all powers of and to act in the place of the Board of Trustees to the
extent permitted by each Fund's Declaration of Trust and By-Laws. The members of
the Executive Committee of a Fund are authorized to exercise all of the powers
and authority of the Board in respect of the issuance and sale, through an
underwritten public offering, of the Shares of the Fund and all other such
matters relating to such financing, including determining the price at which
such Shares are to be sold, approval of the final terms of the underwriting
agreement, and approval of the members of the underwriting syndicate. Such
Committee is also responsible for the declaration and setting of dividends. Mr.
Nielson, Mr. Bowen and Dr. Erickson are members of the Executive Committee. The
number of meetings of the Executive Committee held for each Fund during its last
fiscal year is shown on Schedule 1 hereto.
The Nominating and Governance Committee of each Fund is responsible for
appointing and nominating persons to the Board of Trustees of that Fund. Messrs.
Erickson, Kadlec, Keith and Nielson are members of the Nominating and Governance
Committee, and each is an Independent Trustee who is also an "independent
director" within the meaning of the listing rules of the primary national
securities exchange on which the Funds' shares are listed for trading. The
Nominating and Governance Committee operates under a written charter adopted and
approved by the Board, a copy of which is available on the Funds' website at
https://www.ftportfolios.com (go to News & Literature on the applicable Fund's
webpage). If there is no current or anticipated vacancy on the Board of Trustees
of a Fund, the Nominating and Governance Committee will not actively seek
recommendations from other parties, including shareholders. In 2014, the Board
of Trustees adopted a mandatory retirement age of 75 for Trustees, beyond which
age Trustees are ineligible to serve. The Nominating and Governance Committee
Charter provides that the Committee will not consider new trustee candidates who
are 72 years of age or older or will turn 72 years old during the initial term.
When a vacancy on the Board of Trustees of a Fund occurs or is anticipated to
occur and nominations are sought to fill such vacancy, the Nominating and
Governance Committee may seek nominations from those sources it deems
appropriate in its discretion, including shareholders of the applicable Fund.
The Nominating and Governance Committee may retain a search firm to identify
candidates. To submit a recommendation for nomination as a candidate for a
position on the Board of Trustees of a Fund, shareholders of the applicable Fund
shall mail such recommendation to W. Scott Jardine, Secretary, at 120 East
Liberty Drive, Suite 400, Wheaton, Illinois 60187. Such recommendation shall
include the following information: (i) evidence of Fund ownership of the person
or entity recommending the candidate (if a Fund shareholder); (ii) a full
description of the proposed candidate's background, including their education,
experience, current employment and date of birth; (iii) names and addresses of
at least three professional references for the candidate; (iv) information as to
whether the candidate is an "interested person" in relation to the Fund, as such
term is defined in the 1940 Act, and such other information that may be
considered to impair the candidate's independence; and (v) any other information
that may be helpful to the Committee in evaluating the candidate (see also
"ADDITIONAL INFORMATION - SHAREHOLDER PROPOSALS" below). If a recommendation is
received with satisfactorily completed information regarding a candidate during
a time when a vacancy exists on the Board or during such other time as the
Nominating and Governance Committee is accepting recommendations, the
recommendation will be forwarded to the Chairman of the Nominating and
Governance Committee and the counsel to the Independent Trustees. In connection
with the evaluation of candidates, the review process may include, without
limitation, personal interviews, background checks, written submissions by the
-15-
candidates and third party references. Under no circumstances shall the
Nominating and Governance Committee evaluate nominees recommended by a
shareholder of a Fund on a basis substantially different than that used for
other nominees for the same election or appointment of Trustees. The number of
meetings of the Nominating and Governance Committee held for each Fund during
its last fiscal year is shown on Schedule 1 hereto.
The Valuation Committee of each Fund is responsible for the oversight of
the valuation procedures of that Fund (the "Valuation Procedures"), for
determining the fair value of that Fund's securities or other assets under
certain circumstances as described in the Valuation Procedures, and for
evaluating the performance of any pricing service for that Fund. Messrs.
Erickson, Kadlec, Keith and Nielson are members of the Valuation Committee. The
number of meetings of the Valuation Committee held for each Fund during its last
fiscal year is shown on Schedule 1 hereto.
The Audit Committee of each Fund is responsible for overseeing that Fund's
accounting and financial reporting process, the system of internal controls,
audit process and evaluating and appointing independent auditors (subject also
to Board approval). The Audit Committee operates under a written charter adopted
and approved by the Board, a copy of which is available on the Funds' website at
https://www.ftportfolios.com (go to News & Literature on the applicable Fund's
webpage). Messrs. Erickson, Kadlec, Keith and Nielson, all of whom are
"independent directors" within the meaning of the listing rules of the primary
national securities exchange on which the Funds' shares are listed for trading,
serve on the Audit Committee. Messrs. Kadlec and Keith have each been determined
to qualify as an "Audit Committee Financial Expert" as such term is defined in
Form N-CSR. The number of meetings of the Audit Committee held for each Fund
during its last fiscal year is shown in Schedule 1 hereto.
In carrying out its responsibilities, as described below under
"INDEPENDENT AUDITORS' FEES--Pre-Approval," the Audit Committee pre-approves all
audit services and permitted non-audit services for each Fund (including the
fees and terms thereof) and non-audit services to be performed for the Advisor
by Deloitte & Touche LLP ("Deloitte & Touche"), the Funds' independent
registered public accounting firm ("independent auditors"), if the engagement
relates directly to the operations and financial reporting of the Funds.
During each Fund's last fiscal year, each Trustee, with the exception of
Mr. Bowen, attended at least 75% of the aggregate number of meetings of the
Board and of each committee on which the Trustee served during the Fund's last
fiscal year. With respect to First Trust Energy Income and Growth Fund, during
such Fund's last fiscal year, Mr. Bowen attended at least 75% of the aggregate
number of meetings of the Board and of the Dividend and Pricing Committee (the
only committee on which he served). With respect to each of the other Funds,
during the Fund's last fiscal year, Mr. Bowen attended 100% (7 out of 7) of the
Fund's regular and special Board meetings, but the following percentages of the
Fund's Dividend and Pricing Committee meetings: (a) 0% (0 out of 12 meetings)
for First Trust Mortgage Income Fund, First Trust MLP and Energy Income Fund,
First Trust Intermediate Duration Preferred & Income Fund and First Trust New
Opportunities MLP & Energy Fund; (b) 25% (1 out of 4 meetings) for
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund,
First Trust Specialty Finance and Financial Opportunities Fund, First Trust
Enhanced Equity Income Fund and First Trust/Aberdeen Emerging Opportunity Fund;
and (c) approximately 8% (1 out of 12 meetings) for First Trust Energy
Infrastructure Fund and First Trust Dynamic Europe Equity Income Fund. With
respect to each Fund, all of the Dividend and Pricing Committee meetings that
Mr. Bowen did not attend were for ordinary course dividend declarations. In
general, before such Dividend and Pricing Committee meetings were held, Mr.
Bowen was informed of the applicable dividend recommendations.
-16-
RISK OVERSIGHT
As part of the general oversight of each Fund, the Board is involved in
the risk oversight of the Funds. The Board has adopted and periodically reviews
policies and procedures designed to address the Funds' risks. Oversight of
investment and compliance risk, including oversight of sub-advisors, is
performed primarily at the Board level in conjunction with the Advisor's
advisory oversight group and the Funds' Chief Compliance Officer ("CCO").
Oversight of other risks also occurs at the Committee level. The Advisor's
advisory oversight group reports to the Board at quarterly meetings regarding,
among other things, Fund performance and the various drivers of such performance
as well as information related to sub-advisors and their operations and
processes. The Board reviews reports on the Funds' and the service providers'
compliance policies and procedures at each quarterly Board meeting and receives
an annual report from the CCO regarding the operations of the Funds' and the
service providers' compliance programs. In addition, the Independent Trustees
meet privately each quarter with the CCO. The Audit Committee reviews with the
Advisor the Funds' major financial risk exposures and the steps the Advisor has
taken to monitor and control these exposures, including the Funds' risk
assessment and risk management policies and guidelines. The Audit Committee
also, as appropriate, reviews in a general manner the processes other Board
committees have in place with respect to risk assessment and risk management.
The Nominating and Governance Committee monitors all matters related to the
corporate governance of the Funds. The Valuation Committee monitors valuation
risk and compliance with the Funds' Valuation Procedures and oversees the
pricing services and actions by the Advisor's Pricing Committee with respect to
the valuation of portfolio securities.
Not all risks that may affect the Funds can be identified nor can controls
be developed to eliminate or mitigate their occurrence or effects. It may not be
practical or cost-effective to eliminate or mitigate certain risks, the
processes and controls employed to address certain risks may be limited in their
effectiveness, and some risks are simply beyond the reasonable control of the
Funds or the Advisor or other service providers. For instance, as the use of
Internet technology has become more prevalent, the Funds and their service
providers have become more susceptible to potential operational risks through
breaches in cyber security (generally, intentional and unintentional events that
may cause a Fund or a service provider to lose proprietary information, suffer
data corruption or lose operational capacity). There can be no guarantee that
any risk management systems established by the Funds, their service providers,
or issuers of the securities in which the Funds invest to reduce cyber security
risks will succeed, and the Funds cannot control such systems put in place by
service providers, issuers or other third parties whose operations may affect
the Funds and/or their shareholders. Moreover, it is necessary to bear certain
risks (such as investment related risks) to achieve a Fund's goals. As a result
of the foregoing and other factors, the Funds' ability to manage risk is subject
to substantial limitations.
BOARD DIVERSIFICATION AND TRUSTEE QUALIFICATIONS
As described above, the Nominating and Governance Committee of the Board
oversees matters related to the selection and nomination of Trustees. The
Nominating and Governance Committee seeks to establish an effective Board with
an appropriate range of skills and diversity, including, as appropriate,
differences in background, professional experience, education, vocations, and
other individual characteristics and traits in the aggregate. Each Trustee must
meet certain basic requirements, including relevant skills and experience, time
availability, and if qualifying as an Independent Trustee, independence from the
Advisor, sub-advisors, underwriters or other service providers, including any
affiliates of these entities.
Listed below for the nominee and each continuing Trustee are the
experiences, qualifications and attributes that led to the conclusion, as of the
date of this Joint Proxy Statement, that the nominee and each continuing Trustee
should serve as a trustee.
-17-
NOMINEE
-------
Independent Trustee
Robert F. Keith is President of Hibs Enterprises, a financial and
management consulting firm. Mr. Keith has been with Hibs Enterprises since 2003.
Prior thereto, Mr. Keith spent 18 years with ServiceMaster and Aramark,
including three years as President and COO of ServiceMaster Consumer Services,
where he led the initial expansion of certain products overseas, five years as
President and COO of ServiceMaster Management Services Company, and two years as
President of Aramark ServiceMaster Management Services. Mr. Keith is a certified
public accountant and also has held the positions of Treasurer and Chief
Financial Officer of ServiceMaster, at which time he oversaw the financial
aspects of ServiceMaster's expansion of its Management Services division into
Europe, the Middle East and Asia. Mr. Keith has served as a Trustee of the First
Trust Funds since June 2006. Mr. Keith has also served as Chairman of the Audit
Committee (2008 - 2009 and 2017 - 2019), Chairman of the Nominating and
Governance Committee (2010 - 2011), and Chairman of the Valuation Committee
(2014 - 2016) of the First Trust Funds. He also served as Lead Independent
Trustee (2012 - 2013) and on the Executive Committee (2012 - 2016) of the First
Trust Funds. He currently serves as Chairman of the Nominating and Governance
Committee (since January 1, 2020) of the First Trust Funds.
CONTINUING TRUSTEES
-------------------
Independent Trustees
Richard E. Erickson, M.D., is an orthopedic surgeon. He also has been
President of Wheaton Orthopedics, a co-owner and director of a fitness center
and a limited partner of two real estate companies. Dr. Erickson has served as a
Trustee of each Fund since its inception and of the First Trust Funds since
1999. Dr. Erickson has also served as the Lead Independent Trustee (2008 - 2009
and 2017 - 2019) and on the Executive Committee (2008 - 2009 and 2017 -
present), Chairman of the Nominating and Governance Committee (2003 - 2007 and
2014 - 2016), Chairman of the Valuation Committee (June 2006 - 2007 and 2010 -
2011) and Chairman of the Audit Committee (2012 - 2013) of the First Trust
Funds. He currently serves as Chairman of the Valuation Committee (since January
1, 2020) of the First Trust Funds.
Thomas R. Kadlec is President of ADM Investor Services Inc. ("ADMIS"), a
futures commission merchant and wholly-owned subsidiary of the Archer Daniels
Midland Company ("ADM"). Mr. Kadlec has been employed by ADMIS and its
affiliates since 1990 in various accounting, financial, operations and risk
management capacities. Mr. Kadlec serves on the boards of several international
affiliates of ADMIS and served as a member of ADM's Integrated Risk Committee
from 2008 - 2018, which was tasked with the duty of implementing and
communicating enterprise-wide risk management. In 2014, Mr. Kadlec was elected
to the board of the Futures Industry Association. In 2017, Mr. Kadlec was
elected to the board of the National Futures Association. Mr. Kadlec has served
as a Trustee of each Fund since its inception and of the First Trust Funds since
2003. Mr. Kadlec also served on the Executive Committee from the organization of
the first First Trust Closed-end Fund in 2003 through 2005 (and 2014 - 2019)
until he was elected as the first Lead Independent Trustee in December 2005,
serving as such through 2007 (and 2014 - 2016). He also served as Chairman of
the Valuation Committee (2008 - 2009 and 2017 - 2019), Chairman of the Audit
Committee (2010 - 2011) and Chairman of the Nominating and Governance Committee
(2012 - 2013) of the First Trust Funds. He currently serves as Chairman of the
Audit Committee (since January 1, 2020) of the First Trust Funds.
-18-
Niel B. Nielson, Ph.D., has been the Senior Advisor of Pelita Harapan
Educational Foundation, a global provider of educational products and services,
since August 2018. Prior thereto, Mr. Nielson served as the Managing Director
and Chief Operating Officer of Pelita Harapan Educational Foundation for three
years. Mr. Nielson formerly served as President and Chief Executive Officer of
Servant Interactive LLC (providing educational products and services) from June
2012 to September 2014, and he served as President and Chief Executive Officer
of Dew Learning LLC from June 2012 to September 2014. Mr. Nielson formerly
served as President of Covenant College (2002 - 2012), and as a partner and
trader (of options and futures contracts for hedging options) for Ritchie
Capital Markets Group (1996 - 1997), where he held an administrative management
position at this proprietary derivatives trading company. He also held prior
positions in new business development for ServiceMaster Management Services
Company, and in personnel and human resources for NationsBank of North Carolina,
N.A. and Chicago Research and Trading Group, Ltd. ("CRT"). His international
experience includes serving as a director of CRT Europe, Inc. for two years,
directing out of London all aspects of business conducted by the U.K. and
European subsidiary of CRT. Prior to that, Mr. Nielson was a trader and manager
at CRT in Chicago. Mr. Nielson has served as a Trustee of each Fund since its
inception and of the First Trust Funds since 1999. Mr. Nielson has also served
as Chairman of the Audit Committee (2003 - 2007 and 2014 - 2016), Chairman of
the Valuation Committee (2012 - 2013), Chairman of the Nominating and Governance
Committee (2008 - 2009 and 2017 - 2019), and Lead Independent Trustee and a
member of the Executive Committee (2010 - 2011) of the First Trust Funds. He
currently serves as Lead Independent Trustee and on the Executive Committee
(since January 1, 2020) of the First Trust Funds.
Interested Trustee
James A. Bowen is the Chairman of the Board of the First Trust Funds and
Chief Executive Officer of First Trust Advisors and First Trust Portfolios L.P.
Until January 23, 2012, he served as President and Chief Executive Officer of
the First Trust Funds. Mr. Bowen also serves on the Executive Committee. He has
over 36 years of experience in the investment company business in sales, sales
management and executive management. Mr. Bowen has served as a Trustee of each
Fund since its inception and of the First Trust Funds since 1999.
OTHER INFORMATION
Independent Trustees
During the past five years, none of the Independent Trustees, nor any of
their immediate family members, has been a director, trustee, officer, general
partner or employee of, or consultant to, First Trust Advisors, First Trust
Portfolios L.P. (an affiliate of First Trust Advisors), any sub-advisor to any
fund in the First Trust Fund Complex, or any of their affiliates.
Executive Officers
The executive officers of each Fund hold the same positions with each fund
in the First Trust Fund Complex (representing 172 portfolios) as they hold with
the Funds.
BENEFICIAL OWNERSHIP OF SHARES HELD IN THE FUNDS BY TRUSTEES AND EXECUTIVE
OFFICERS
The following table sets forth the dollar range and number of equity
securities beneficially owned by the Trustees in each Fund and the dollar range
of equity securities beneficially owned by the Trustees in all funds in the
First Trust Fund Complex, including the Funds, as of December 31, 2019:
-19-
------------------------- ---------------- -----------------------------------------------------------------------------
INTERESTED INDEPENDENT
TRUSTEE TRUSTEES
-------------------------------------------------------- ---------------------------------------------------- ---------------- -----------------------------------------------------------------------------
FUND James A. Bowen Richard E. Erickson None
-------------------------------------------------------- ---------------------------
Thomas R. Kadlec None
-------------------------------------------------------- ---------------------------
Robert F. Keith None
-------------------------------------------------------- ---------------------------
Niel B. Nielson None
-------------------------------------------------------- ---------------------------
TRUSTEESB.Nielson
------------------------- ---------------- --------------------- ------------------ ----------------- ------------------
MACQUARIE/FIRST TRUST
GLOBAL INFRASTRUCTURE/
UTILITIES DIVIDEND & $0 $10,001-$50,000 $1-$10,000 $0 $10,001-$50,000
INCOME FUND (0 Shares) (1,208 Shares) (800 Shares) (0 Shares) (1,712 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST ENERGY $0 $10,001-$50,000 $10,001-$50,000 $0 $10,001-$50,000
INCOME AND EXECUTIVE OFFICERS AS A GROUP None
-------------------------------------------------------- ---------------------------GROWTH FUND (0 Shares) (636 Shares) (700 Shares) (0 Shares) (789 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST ENHANCED $50,001-$100,000 $1-$10,000 $10,001-$50,000 $0 $10,001-$50,000
EQUITY INCOME FUND (4,003 Shares) (486 Shares) (850 Shares) (0 Shares) (621 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST MORTGAGE $0 $0 $1-$10,000 $0 $1-$10,000
INCOME FUND (0 Shares) (0 Shares) (650 Shares) (0 Shares) (641 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST/ABERDEEN
EMERGING OPPORTUNITY $0 $0 $10,001-$50,000 $1-$10,000 $1-$10,000
FUND (0 Shares) (0 Shares) (1,000 Shares) (600 Shares) (454 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST SPECIALTY
FINANCE AND FINANCIAL $0 $0 $10,001-$50,000 $0 $0
OPPORTUNITIES FUND (0 Shares) (0 Shares) (2,000 Shares) (0 Shares) (0 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST ENERGY $0 $0 $0 $0 $0
INFRASTRUCTURE FUND (0 Shares) (0 Shares) (0 Shares) (0 Shares) (0 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST MLP AND $0 $0 $0 $0 $0
ENERGY INCOME FUND (0 Shares) (0 Shares) (0 Shares) (0 Shares) (0 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST
INTERMEDIATE DURATION $0 $0 $10,001-$50,000 $10,001-$50,000 $0
PREFERRED & INCOME FUND (0 Shares) (0 Shares) (1,000 Shares) (512 Shares) (0 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST NEW
OPPORTUNITIES MLP & $0 $0 $0 $0 $0
ENERGY FUND (0 Shares) (0 Shares) (0 Shares) (0 Shares) (0 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
FIRST TRUST DYNAMIC
EUROPE EQUITY INCOME Over $100,000 $0 $0 $10,001-$50,000 $10,001-$50,000
FUND (71,288 Shares) (0 Shares) (0 Shares) (1,650 Shares) (3,000 Shares)
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
AGGREGATE DOLLAR RANGE
OF EQUITY SECURITIES IN
ALL REGISTERED
INVESTMENT COMPANIES IN Over $100,000 Over $100,000 Over $100,000 Over $100,000 Over $100,000
THE FIRST TRUST FUND
COMPLEX OVERSEEN BY
TRUSTEE
------------------------- ---------------- --------------------- ------------------ ----------------- -----------------
The Independent Trustees have adopted a policy that establishes the
expectation that each Independent Trustee will have invested an amount in the
funds in the First Trust Fund Complex he oversees in the aggregate of at least
one year's annual retainer for Board service, with investments allocated among
the funds in the First Trust Fund Complex depending on what is suitable for the
Trustee's personal investment needs.
As of December 31, 2017, (a)2019, the Independent Trustees and (b)their immediate
family members did not own, beneficially or of record, any class of securities
of First Trust Advisors or any sub-advisor or principal underwriter of any Fund
or any person, other than a registered investment company, directly or
indirectly controlling, controlled by, or under common control with First Trust
Advisors or any sub-advisor or principal underwriter of any Fund, nor, since the
beginning of the most recently completed fiscal year of any Fund, did any
Independent Trustee purchase or sell securities of First Trust Advisors, or any
sub-advisor to any fund in the First Trust Fund Complex, their parents or any
subsidiaries of any of the foregoing.
-20-
As of December 31, 2019, the Trustees and executive officers of theeach Fund
as a group beneficially owned nonethe following number of Shares of each Fund, which
is less than 1% of each Fund's Shares outstanding:
-------------------------------------------------------------------------------- ----------------------
FUND SHARES OWNED
-------------------------------------------------------------------------------- ----------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND 3,720
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND 2,125
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST ENHANCED EQUITY INCOME FUND 5,960
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST MORTGAGE INCOME FUND 1,291
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND 2,054
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND 2,000
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND 0
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST MLP AND ENERGY INCOME FUND 0
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND 1,512
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND 0
-------------------------------------------------------------------------------- ----------------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND 77,938
-------------------------------------------------------------------------------- ----------------------
COMPENSATION
Effective January 1, 2019, the fixed annual retainer paid to the
Independent Trustees was $255,000 per year and an annual per fund fee of $2,500
for each closed-end fund and actively managed fund and $250 for each index fund.
Effective January 1, 2020, the fixed annual retainer paid to the Independent
Trustees is $255,000 per year and an annual per fund fee of $2,500 for each
closed-end fund and actively managed fund, $750 for each defined outcome fund
and $250 for each index fund. The fixed annual retainer is allocated equally
among each fund in the First Trust Fund Complex. Additionally, the Lead
Independent Trustee is paid $30,000 annually, the Chairmen of the total
shares outstandingAudit
Committee or Valuation Committee are each paid $20,000 annually and the Chairman
of the Fund. The information asNominating and Governance Committee is paid $10,000 annually to beneficial ownership isserve in
such capacities with compensation allocated pro rata among each fund in the
First Trust Fund Complex based on statements furnishedits net assets. Trustees are also reimbursed
by the funds in the First Trust Fund Complex for travel and out-of-pocket
expenses incurred in connection with all meetings. Each Committee Chairman and
the Lead Independent Trustee rotate every three years.
The number of Board meetings held by each Fund during its last fiscal year
is shown in Schedule 1 hereto.
-21-
The aggregate fees and expenses paid to all Trustees by each Fund for its
last fiscal year (including reimbursement for travel and out-of-pocket expenses)
amounted to the following:
------------------------------------------------------------------------------------------- ---------------------------
AGGREGATE FEES AND
FUND EXPENSES PAID
------------------------------------------------------------------------------------------- ---------------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND $16,234
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND $16,630
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST ENHANCED EQUITY INCOME FUND $16,588
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST MORTGAGE INCOME FUND $16,196
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND $16,315
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND $16,220
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND $16,481
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST MLP AND ENERGY INCOME FUND $16,808
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND $17,766
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND $16,421
------------------------------------------------------------------------------------------- ---------------------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND $16,527
------------------------------------------------------------------------------------------- ---------------------------
The following table sets forth certain information regarding the
compensation of each Fund's Trustees (including reimbursement for travel and
out-of-pocket expenses) for each Fund's most recently completed fiscal year. The
Funds have no retirement or pension plans. The executive officers and the
Interested Trustee of each Fund receive no compensation from the Funds for
serving in such capacities.
AGGREGATE COMPENSATION FOR EACH FUND'S FISCAL YEAR
------------------------------------------------------ -------------- -----------------------------------------------------------
INTERESTED INDEPENDENT
TRUSTEE TRUSTEES
------------------------------------------------------ -------------- -----------------------------------------------------------
James A. Richard E. Thomas R. Robert F. Niel B.
FUND Bowen Erickson Kadlec Keith Nielson
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
MACQUARIE/FIRST TRUST GLOBAL
INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND(1) $0 $4,067 $4,059 $4,062 $4,046
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND(1) $0 $4,196 $4,159 $4,174 $4,101
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST ENHANCED EQUITY INCOME FUND(2) $0 $4,174 $4,148 $4,159 $4,107
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST MORTGAGE INCOME FUND(3) $0 $4,055 $4,049 $4,051 $4,041
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND(2) $0 $4,085 $4,079 $4,082 $4,069
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL
OPPORTUNITIES FUND(1) $0 $4,063 $4,055 $4,058 $4,044
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND(1) $0 $4,148 $4,121 $4,132 $4,080
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST MLP AND ENERGY INCOME FUND(3) $0 $4,254 $4,204 $4,224 $4,126
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED &
INCOME FUND(3) $0 $4,567 $4,447 $4,493 $4,259
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
-22-
------------------------------------------------------ -------------- -----------------------------------------------------------
INTERESTED INDEPENDENT
TRUSTEE TRUSTEES
------------------------------------------------------ -------------- -----------------------------------------------------------
James A. Richard E. Thomas R. Robert F. Niel B.
FUND Bowen Erickson Kadlec Keith Nielson
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND(3) $0 $4,128 $4,106 $4,115 $4,072
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND(2) $0 $4,153 $4,133 $4,142 $4,099
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
TOTAL COMPENSATION FOR SERVING THE FIRST TRUST
FUND COMPLEX(4) $0 $458,125 $451,450 $454,098 $440,930
------------------------------------------------------ -------------- -------------- -------------- -------------- --------------
(1) For fiscal year ended November 30, 2019.
(2) For fiscal year ended December 31, 2019.
(3) For fiscal year ended October 31, 2019.
(4) For the calendar year ended December 31, 2019 for services to four
portfolios of First Trust Series Fund and three portfolios of First Trust
Variable Insurance Trust, open-end funds; 15 closed-end funds; and 149
series of the ETF Trusts. Compensation includes, with respect to certain
ETFs, compensation paid by the Advisor rather than by the ETF directly
pursuant to the terms of the advisory agreement between the applicable ETF
Trust and the Advisor.
ATTENDANCE AT ANNUAL MEETINGS OF SHAREHOLDERS
Each Fund's Board of Trustees seeks to have as many Trustees as possible
in attendance at annual meetings of shareholders. The policy of the Nominating
and executive officer.Governance Committee relating to attendance by Trustees at annual meetings
of shareholders is contained in the Funds' Nominating and Governance Committee
Charter, which is available on each Fund's website located at
https://www.ftportfolios.com (go to News & Literature on the applicable Fund's
webpage). In addition, for each Fund, the attendance of the Board of Trustees at
last year's annual shareholder meeting is available on such Fund's website
located at https://www.ftportfolios.com. To find the Board of Trustees'
attendance, select your Fund under the "Closed-End Funds" tab, select the "News
& Literature" link, and go to the "Shareholder Updates and Information" heading.
AUDIT COMMITTEE REPORT
The role of the Audit Committee is to assist the Board of Trustees in its
oversight of the Funds' accounting and financial reporting process. The Audit
Committee operates pursuant to a charter (the "Charter") that was most recently
reviewed by the Board of Trustees on December 9, 2019, a copy of which is
available on each Fund's website located at https://www.ftportfolios.com (go to
News & Literature on the applicable Fund's webpage). As set forth in the
Charter, management of the Funds has the primary responsibility for establishing
and maintaining systems for accounting, reporting, disclosure and internal
controls. The Funds' independent auditors have the primary responsibility to
plan and implement an audit, with proper consideration given to the accounting,
reporting and internal controls.
In performing its oversight function, the Audit Committee reviewed and
discussed with management and the independent auditors, Deloitte & Touche LLP,
the audited financial statements of the First Trust Mortgage Income Fund, the
First Trust MLP and Energy Income Fund, the First Trust Intermediate Duration
Preferred & Income Fund and the First Trust New Opportunities MLP & Energy Fund
for the fiscal year ended October 31, 2019 at a meeting held on December 19,
2019; the Macquarie/First Trust Global Infrastructure/Utilities Dividend &
Income Fund, the First Trust Energy Income and Growth Fund, the First Trust
Specialty Finance and Financial Opportunities Fund and the First Trust Energy
Infrastructure Fund for the fiscal year ended November 30, 2019 at a meeting
held on January 15, 2020; and the First Trust Enhanced Equity Income Fund, the
First Trust/Aberdeen Emerging Opportunity Fund and the First Trust Dynamic
Europe Equity Income Fund for the fiscal year ended December 31, 2019 at a
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meeting held on February 20, 2020, and discussed the audits of such financial
statements with the independent auditors and management.
In addition, the Audit Committee discussed with the independent auditors
the accounting principles applied by the Funds and such other matters brought to
the attention of the Audit Committee by the independent auditors as required by
the Public Company Accounting Oversight Board ("PCAOB") Auditing Standard 1301,
Communications with Audit Committees. The Audit Committee also received from the
independent auditors the written disclosures and letter required by PCAOB Ethics
and Independence Rule 3526, Communication with Audit Committees Concerning
Independence, delineating relationships between the independent auditors and the
Funds, and discussed the impact that any such relationships may have on the
objectivity and independence of the independent auditors.
The members of the Funds' Audit Committee are not full-time employees of
the Funds and are not performing the functions of auditors or accountants. As
such, it is not the duty or responsibility of the Audit Committee or its members
to conduct "field work" or other types of auditing or accounting reviews or
procedures or to set auditor independence standards. Members of the Funds' Audit
Committee necessarily rely on the information provided to them by Fund
management and the independent auditors. Accordingly, the Audit Committee's
considerations and discussions referred to above do not assure that the audit of
the Funds' financial statements has been carried out in accordance with
generally accepted auditing standards, that the financial statements are
presented in accordance with generally accepted accounting principles or that
the independent auditors are in fact "independent."
Based on its consideration of the Funds' audited financial statements and
the discussions referred to above with Fund management and Deloitte & Touche
LLP, and subject to the limitations on the responsibilities and role of the
Audit Committee as set forth in the Charter and discussed above, the Audit
Committee recommended to the Board the inclusion of each Fund's audited
financial statements in each Fund's Annual Report to Shareholders for the years
ended October 31, November 30 and December 31, 2019, respectively.
Submitted by the Audit Committee of the Funds:
Thomas R. Kadlec
Richard E. Erickson
Robert F. Keith
Niel B. Nielson
INDEPENDENT AUDITORS' FEES
Deloitte & Touche has been selected to serve as the independent auditors
for each Fund for its current fiscal year, and acted as the independent auditors
for each Fund for its most recently completed fiscal year. Deloitte & Touche has
advised the Funds that, to the best of its knowledge and belief, Deloitte &
Touche professionals did not have any direct or material indirect ownership
interest in the Funds inconsistent with independent professional standards
pertaining to independent registered public accounting firms. Representatives of
Deloitte & Touche are not expected to be present at the Meeting, but will have
the opportunity to make a statement if they desire to do so and will be
available should any matter arise requiring their presence. In reliance on Rule
32a-4 under the 1940 Act, each Fund is not seeking shareholder ratification of
the selection of Deloitte & Touche as independent auditors.
Audit Fees, Audit-Related Fees, Tax Fees and All Other Fees
During each of the last two fiscal years of the Funds, Deloitte & Touche
has billed each Fund and the Advisor for the fees set forth below. With respect
to First Trust Intermediate Duration Preferred & Income Fund, fees billed for
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services to Stonebridge Advisors LLC ("Stonebridge"), such Fund's sub-advisor,
are also listed below; an affiliate of the Advisor owns a majority interest in
Stonebridge.
--------------------------------- --------------------- ------------------- ---------------------- --------------------
AUDIT-RELATED TAX ALL OTHER
AUDIT FEES(1) FEES FEES(2) FEES
--------------------------------- --------------------- ------------------- ---------------------- --------------------
FEES BILLED TO: 2018 2019 2018 2019 2018 2019 2018 2019
--------------------------------- ---------- ---------- ---------- -------- ---------- ----------- ---------- ---------
MACQUARIE/FIRST TRUST GLOBAL
INFRASTRUCTURE/ UTILITIES
DIVIDEND & INCOME FUND(3)
Fund $49,000 $49,000 $0 $0 $16,050 $30,332 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST ENERGY INCOME AND
GROWTH FUND(3)
Fund $82,000 $57,000 $0 $0 $42,000 $42,044 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST ENHANCED EQUITY
INCOME FUND(4)
Fund $38,000 $38,000 $0 $0 $5,200 $5,266 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST MORTGAGE INCOME
FUND(5)
Fund $45,000 $45,000 $0 $0 $21,700 $19,560 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST/ABERDEEN EMERGING
OPPORTUNITY FUND(4)
Fund $53,000 $53,000 $0 $0 $5,200 $6,311 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST SPECIALTY FINANCE
AND FINANCIAL OPPORTUNITIES
FUND(3)
Fund $42,000 $42,000 $0 $0 $4,450 $5,200 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST ENERGY
INFRASTRUCTURE FUND(3)
Fund $44,000 $44,000 $0 $0 $5,550 $6,373 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST MLP AND ENERGY
INCOME FUND(5)
Fund $82,000 $57,000 $0 $0 $42,000 $42,000 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST INTERMEDIATE
DURATION PREFERRED & INCOME
FUND(5)
Fund $28,000 $28,000 $0 $0 $4,450 $5,200 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
Sub-Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST NEW OPPORTUNITIES
MLP & ENERGY FUND(5)
Fund $82,000 $57,000 $0 $0 $42,000 $42,000 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
FIRST TRUST DYNAMIC EUROPE
EQUITY INCOME FUND(4)
Fund $39,500 $39,500 $0 $0 $16,800 $18,248 $0 $0
Advisor N/A N/A $0 $0 $0 $0 $0 $0
--------------------------------- ---------- ---------- --------- --------- ---------- ----------- ---------- ---------
(1) These fees were the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services that are
normally provided in connection with statutory and regulatory filings or
engagements. For 2018, a portion of the amounts shown for First Trust
Energy Income and Growth Fund, First Trust MLP and Energy Income Fund and
First Trust New Opportunities MLP & Energy Fund included fees attributable
to a shelf offering.
(2) These fees were for tax consultation or tax return preparation and
professional services rendered for PFIC (Passive Foreign Investment
Company) Identification Services.
(3) These fees were for the fiscal years ended November 30.
(4) These fees were for the fiscal years ended December 31.
(5) These fees were for the fiscal years ended October 31.
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Non-Audit Fees
During each of the last two fiscal years of the Funds, Deloitte & Touche
has billed each Fund and the Advisor for the non-audit fees listed below for
services provided to the entities indicated. With respect to First Trust
Intermediate Duration Preferred & Income Fund, non-audit fees billed for
services provided to Stonebridge, such Fund's sub-advisor, are also listed
below; an affiliate of the Advisor owns a majority interest in Stonebridge.
AGGREGATE NON-AUDIT FEES
------------------------------------------------------------------------------ -------------------- -------------------
FUND 2018 2019
------------------------------------------------------------------------------ -------------------- -------------------
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND(1)
Fund $16,050 $30,332
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST ENERGY INCOME AND GROWTH FUND(1)
Fund $42,000 $42,044
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST ENHANCED EQUITY INCOME FUND(2)
Fund $5,200 $5,266
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST MORTGAGE INCOME FUND(3)
Fund $21,700 $19,560
Advisor $48,190(4) $28,500(5)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST/ABERDEEN EMERGING OPPORTUNITY FUND(2)
Fund $5,200 $6,311
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST SPECIALTY FINANCE AND FINANCIAL OPPORTUNITIES FUND(1)
Fund $4,450 $5,200
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST ENERGY INFRASTRUCTURE FUND(1)
Fund $5,550 $6,373
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST MLP AND ENERGY INCOME FUND(3)
Fund $42,000 $42,000
Advisor $48,190(4) $28,500(5)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND(3)
Fund $4,450 $5,200
Advisor $48,190(4) $28,500(5)
Sub-Advisor $3,000(4) $18,500(5)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST NEW OPPORTUNITIES MLP & ENERGY FUND(3)
Fund $42,000 $42,000
Advisor $48,190(4) $28,500(5)
------------------------------------------------------------------------------ -------------------- -------------------
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND(2)
Fund $16,800 $18,248
Advisor $48,190(4) $75,670(6)
------------------------------------------------------------------------------ -------------------- -------------------
(1) These fees were for the fiscal years ended November 30.
(2) These fees were for the fiscal years ended December 31.
(3) These fees were for the fiscal years ended October 31.
(4) These fees relate to 2017 federal and state tax matters and consulting
fees.
(5) These fees relate to 2018 federal and state tax matters and professional
services rendered for an Illinois Private Letter Ruling.
(6) These fees relate to 2018 federal and state tax matters, professional
services rendered for an Illinois Private Letter Ruling and professional
fees related to the First Trust Security Assessment Project.
-26-
Pre-Approval
Pursuant to its Charter and its Audit and Non-Audit Services Pre-Approval
Policy, the Audit Committee of each Fund is responsible for the pre-approval of
all audit services and permitted non-audit services (including the fees and
terms thereof) to be performed for each Fund by its independent auditors. The
Chairman of the Audit Committee is authorized to give such pre-approvals on
behalf of the Audit Committee up to $25,000 and report any such pre-approval to
the full Audit Committee.
The Audit Committee is also responsible for the pre-approval of the
independent auditors' engagements for non-audit services with the Advisor and
any entity controlling, controlled by or under common control with the Advisor
that provides ongoing services to the respective Fund, if the engagement relates
directly to the operations and financial reporting of the Funds, subject to the
de minimis exceptions for non-audit services described in Rule 2-01 of
Regulation S-X. If the independent auditors have provided non-audit services to
the Advisor or any entity controlling, controlled by or under common control
with the Advisor that provides ongoing services to the respective Fund that were
not pre-approved pursuant to its policies, the Audit Committee will consider
whether the provision of such non-audit services is compatible with the
auditors' independence.
None of the Audit Fees, Audit-Related Fees, Tax Fees, or All Other Fees,
if any, or the Aggregate Non-Audit Fees disclosed above that were required to be
pre-approved by the Audit Committee pursuant to its Pre-Approval Policy were
pre-approved by the Audit Committee pursuant to the pre-approval exceptions
included in Regulation S-X.
Because the Audit Committee has not been informed of any such services,
the Audit Committee of each Fund has not considered whether the provision of
non-audit services that were rendered to the Advisor and any entity controlling,
controlled by, or under common control with the Advisor that provides ongoing
services to the respective Fund that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
ADDITIONAL INFORMATION
SHAREHOLDER PROPOSALS
Shareholder Proposals for Inclusion in a Fund's Proxy Statement. To be
considered for presentation at the 20192021 annual meeting of shareholders of thea Fund
and included in the Fund's proxy statement relating to such meeting, a
shareholder proposal must be submitted pursuant to Rule 14a-8 under the 1934 Act
("Rule 14a-8") and must be received at the principal executive offices of the
applicable Fund not later than November 15, 2018.20, 2020. Such a proposal will be
included in thea Fund's proxy statement if it meets the requirements of Rule 14a-8.
Timely submission of a proposal does not mean that such proposal will be
included in thea Fund's proxy statement.
Other Shareholder Proposals. In addition to any requirements of law,
including the proxy rules under the 1934 Act, under the Fund'sFunds' By-Laws, any
proposal to elect any person nominated by shareholders for election as Trustee
and any other proposals by shareholders may only be brought before an annual
meeting of thea Fund if timely written notice (the "Shareholder Notice") is
provided to the Secretary of the Fund and the other conditions summarized below
are met. In accordance with the advance notice provisions included in the Fund'sFunds'
By-Laws, unless a greater or lesser period is required under applicable law, to
be timely, the Shareholder Notice must be delivered to or mailed and received at
the Fund's principal executive offices, Attn: W. Scott Jardine, Secretary, not
less than forty-five (45) days nor more than sixty (60) days prior to the first
-27-
anniversary date of the date of the proxy statement released to shareholders for
the preceding year's annual meeting. However, if and only if the annual meeting
is not scheduled to be held within a period that commences thirty (30) days
before the first anniversary date of the annual meeting for the preceding year
and ends thirty (30) days after such anniversary date (an annual meeting date
outside such period being referred to herein as an "Other Annual Meeting Date"),
such Shareholder Notice must be given as described above by the later of the
-14-
close of business on (i) the date forty-five (45) days prior to such Other
Annual Meeting Date or (ii) the tenth (10th) business day following the date
such Other Annual Meeting Date is first publicly announced or disclosed.
Any shareholder submitting a nomination of any person or persons (as the
case may be) for election as a Trustee or Trustees of thea Fund is required to
deliver, as part of such Shareholder Notice: (i) a statement in writing setting
forth: (A) the name, age, date of birth, business address, residence address and
nationality of the person or persons to be nominated; (B) the class or series
and number of all Shares of the Fund owned of record or beneficially by each
such person or persons, as reported to such shareholder by such nominee(s); (C)
any other information regarding each such person required by paragraphs (a),
(d), (e) and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of
Rule 14a-101 (Schedule 14A) under the 1934 Act (or any successor provision
thereto); (D) any other information regarding the person or persons to be
nominated that would be required to be disclosed in a proxy statement or other
filings required to be made in connection with solicitation of proxies for
election of trustees or directors pursuant to Section 14 of the 1934 Act and the
rules and regulations promulgated thereunder; and (E) whether such shareholder
believes any nominee is or will be an "interested person" of the Fund (as
defined in the 1940 Act) and, if not an "interested person," information
regarding each nominee that will be sufficient for the Fund to make such
determination; and (ii) the written and signed consent of any person nominated
to be named as a nominee and to serve as a Trustee if elected. In addition, the
Trustees may require any proposed nominee to furnish such other information as
they may reasonably require or deem necessary to determine the eligibility of
such proposed nominee to serve as a Trustee.
Without limiting the foregoing, any shareholder who gives a Shareholder
Notice of any matter proposed to be brought before a shareholder meeting
(whether or not involving nominees for Trustees) is required to deliver, as part
of such Shareholder Notice: (i) the description of and text of the proposal to
be presented; (ii) a brief written statement of the reasons why such shareholder
favors the proposal; (iii) such shareholder's name and address as they appear on
the Fund's books; (iv) any other information relating to the shareholder that
would be required to be disclosed in a proxy statement or other filings required
to be made in connection with the solicitation of proxies with respect to the
matter(s) proposed pursuant to Section 14 of the 1934 Act and the rules and
regulations promulgated thereunder; (v) the class or series and number of all
Shares of the Fund owned beneficially and of record by such shareholder; (vi)
any material interest of such shareholder in the matter proposed (other than as
a shareholder); (vii) a representation that the shareholder intends to appear in
person or by proxy at the shareholder meeting to act on the matter(s) proposed;
(viii) if the proposal involves nominee(s) for Trustees, a description of all
arrangements or understandings between the shareholder and each proposed nominee
and any other person or persons (including their names) pursuant to which the
nomination(s) are to be made by the shareholder; and (ix) in the case of a
shareholder (a "Beneficial Owner") that holds Shares entitled to vote at the
meeting through a nominee or "street name" holder of record, evidence
establishing such Beneficial Owner's indirect ownership of, and entitlement to
vote, Shares at the meeting of shareholders. Shares "beneficially owned" means
all Shares which such person is deemed to beneficially own pursuant to Rules
13d-3 and 13d-5 under the 1934 Act.
In addition, the By-Laws provide that, unless required by federal law, no
matters shall be considered at or brought before any annual or special meeting
unless such matter has been deemed a proper matter for shareholder action by at
least sixty-six and two-thirds percent (66-2/3%) of the Trustees. Timely
submission of a proposal does not mean that such proposal will be brought before
the meeting.
-15--28-
SHAREHOLDER COMMUNICATIONS
Shareholders of thea Fund who want to communicate with the Board of Trustees
or any individual Trustee should write the Fund to the attention of the Fund
Secretary, W. Scott Jardine. The letter should indicate that you are a Fund
shareholder. If the communication is intended for a specific Trustee and so
indicates, it will be sent only to that Trustee. If a communication does not
indicate a specific Trustee, it will be sent to the Chairman of the Nominating
and Governance Committee of the Board of Trustees and the independent legal
counsel to the Independent Trustees for further distribution as deemed
appropriate by such persons.
INVESTMENT ADVISOR, ADMINISTRATORSUB-ADVISORS, ADMINISTRATORS AND TRANSFER AGENTAGENTS
First Trust Advisors L.P., 120 East Liberty Drive, Suite 400, Wheaton,
Illinois 60187, serves as theeach Fund's investment advisor. First Trust Advisors
is also responsible for providing certain clerical, bookkeeping and other
administrative services to theeach Fund and also provides fund reporting services
to theeach Fund for a flat annual fee. Delaware Investments Fund Advisers, 2005
Market Street, Philadelphia, Pennsylvania 19103 serves as the investment
sub-advisor to Macquarie/First Trust Global Infrastructure/Utilities Dividend &
Income Fund. Energy Income Partners, LLC, 10 Wright Street, Westport,
Connecticut 06880, serves as the investment sub-advisor to First Trust Energy
Income and Growth Fund, First Trust Energy Infrastructure Fund, First Trust MLP
and Energy Income Fund and First Trust New Opportunities MLP & Energy Fund. An
affiliate of the Advisor owns an interest in Energy Income Partners, LLC.
Chartwell Investment Partners, LLC, 1205 Westlakes Drive, Suite 100, Berwyn,
Pennsylvania 19312, serves as the investment sub-advisor to First Trust Enhanced
Equity Income Fund. Aberdeen Standard Investments Inc., 1900 Market Street, 2nd
Floor, Philadelphia, Pennsylvania 19103, serves as the investment sub-advisor to
First Trust/Aberdeen Emerging Opportunity Fund. Confluence Investment Management
LLC, 20 Allen Avenue, Suite 300, St. Louis, Missouri 63119, serves as the
investment sub-advisor to First Trust Specialty Finance and Financial
Opportunities Fund. Stonebridge Advisors LLC, 10 Westport Road, Suite C101,
Wilton, Connecticut 06897, serves as the investment sub-advisor to First Trust
Intermediate Duration Preferred & Income Fund. An affiliate of the Advisor owns
a majority interest in Stonebridge Advisors LLC. Janus Capital Management LLC,
151 Detroit Street, Denver, Colorado 80206, serves as the investment sub-advisor
to First Trust Dynamic Europe Equity Income Fund.
The Bank of New York Mellon, 240 Greenwich Street, New York, New York
10286, acts as the administrator, fund accountant and custodian, and BNY Mellon
Investment Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware
19809, acts as the transfer agent, to each Fund except for First Trust
Intermediate Duration Preferred & Income Fund and First Trust Dynamic Europe
Equity Income Fund. Brown Brothers Harriman & Co., 50 Post Office Square,
Boston, Massachusetts 02110, acts as the administrator, fund accountant and
custodian, and Computershare, Inc., P.O. Box 505000, Louisville, Kentucky
40233-5000, acts as the transfer agent, to First Trust Intermediate Duration
Preferred & Income Fund and First Trust Dynamic Europe Equity Income Fund.
DELINQUENT SECTION 16(a) REPORTS
Section 30(h) of the 1940 Act and Section 16(a) of the 1934 Act require
the Funds' Trustees, the Funds' officers subject to such provisions, certain
persons affiliated with First Trust Advisors and any sub-advisor, and persons
who beneficially own more than 10% of a Fund's Shares to file reports of
ownership and changes of ownership with the SEC. Based upon a review of certain
related forms filed with the SEC and certain written representations, each Fund
believes that during the fiscal years ended October 31, 2019, November 30, 2019
and December 31, 2019, as applicable, all such filing requirements applicable to
such persons were met, except as follows: On October 7, 2019, one late Form 3
-29-
was filed for Michael P. Magee, an officer of Chartwell Investment Partners, LLC
("Chartwell"), the investment sub-advisor to First Trust Enhanced Equity Income
Fund. In addition, on March 3, 2020, one late Form 4 was filed for Douglas W.
Kugler, an officer of Chartwell, with respect to his acquisition of Shares of
First Trust Enhanced Equity Income Fund on October 15, 2014.
FISCAL YEAR
The fiscal year end for theFirst Trust Mortgage Income Fund, wasFirst Trust MLP
and Energy Income Fund, First Trust Intermediate Duration Preferred & Income
Fund and First Trust New Opportunities MLP & Energy Fund is October 31. The
fiscal year end for Macquarie/First Trust Global Infrastructure/Utilities
Dividend & Income Fund, First Trust Energy Income and Growth Fund, First Trust
Specialty Finance and Financial Opportunities Fund and First Trust Energy
Infrastructure Fund is November 30. The fiscal year end for First Trust Enhanced
Equity Income Fund, First Trust/Aberdeen Emerging Opportunity Fund and First
Trust Dynamic Europe Equity Income Fund is December 31, 2017.31.
DELIVERY OF CERTAIN DOCUMENTS
Annual reports will be sent to shareholders of record of theeach Fund
following the Fund's fiscal year end. TheEach Fund will furnish, without charge, a
copy of its annual report and/or semi-annual report as available upon request.
Such written or oral requests should be made by writing to the Advisor at 120
East Liberty Drive, Suite 400, Wheaton, Illinois 60187 or by calling toll-free
(800) 988-5891.
Please note that only one annual or semi-annual report or proxy statement
may be delivered to two or more shareholders of thea Fund who share an address,
unless the Fund has received instructions to the contrary. To request a separate
copy of an annual or semi-annual report or proxy statement, or for instructions
as to how to request a separate copy of such documents or as to how to request a
single copy if multiple copies of such documents are received, shareholders
should contact the Advisor at the address and phone number set forth above.
Pursuant to a request, a separate copy will be delivered promptly.
CERTAIN PROVISIONS OF STANDSTILL AGREEMENTS FOR THREE OTHER FIRST TRUST
CLOSED-END FUNDS
In 2017, First Trust/Aberdeen Global Opportunity Income Fund ("FAM") and
the Advisor entered into a standstill agreement (the "Karpus Standstill
Agreement") with Karpus Management, Inc. (doing business as Karpus Investment
Management) and any present or future entities or accounts it manages or
controls or to which it is related (collectively referred to as "Karpus"). Under
the Karpus Standstill Agreement, Karpus agreed, among other things, as to
certain voting-related matters and standstill covenants with respect to FAM and
other investment companies advised by the Advisor (including the
-16-
Fund) other than First Trust Enhanced Equity Income Fund until the earlier of
the conclusion of the 2019 annual meeting of shareholders of FAM and April 30,
2019.
In 2017, each of First Trust High Income Long/Short Fund ("FSD") and the
Advisor, and First Trust Strategic High Income Fund II ("FHY") and the Advisor,
respectively, entered into a standstill agreement (together, the "Saba
Standstill Agreement") with Saba Capital Management, L.P. and certain associated
parties (collectively referred to as "Saba"). Under the Saba Standstill
Agreement, Saba agreed, among other things, as to certain voting-related matters
and standstill covenants with respect to FSD, FHY and other investment companies
advised by the Advisor (including the Fund) until January 20, 2020.
OTHER MATTERS TO COME BEFORE THE MEETING
No business other than the Proposal,proposal to elect Mr. Keith as the Class I
Trustee of each Fund, as described above, is expected to come before the
Meeting, but should any other matter requiring a vote of shareholders arise,
including any question as to an adjournment of the Meeting, the persons named on
the enclosed proxy card will vote thereon according to their best judgment in
the interests of the Fund.Funds.
March 15, 201811, 2020
--------------------------------------------------------------------------------
IT IS IMPORTANT THAT YOUR SHARESPROXIES BE REPRESENTED ATRETURNED PROMPTLY. SHAREHOLDERS ARE THEREFORE
URGED TO COMPLETE, SIGN, DATE AND RETURN THE MEETING. IN ORDER TO
AVOID DELAY AND TO ENSURE THAT YOUR SHARES ARE REPRESENTED, PLEASE VOTEPROXY CARD AS PROMPTLYSOON AS POSSIBLE. YOU MAY VOTE EASILY AND QUICKLY BY MAIL, TELEPHONE OR
THROUGH THE INTERNET. TO VOTE BY MAIL, PLEASE COMPLETE AND MAIL YOUR PROXY CARDPOSSIBLE IN
THE ENCLOSED POSTAGE-PAID RETURN ENVELOPE.
ALTERNATIVELY, SHAREHOLDERS MAY--------------------------------------------------------------------------------
-30-
SCHEDULE 1
NUMBER OF BOARD AND COMMITTEE MEETINGS
HELD DURING EACH FUND'S LAST FISCAL YEAR
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
EXECUTIVE
COMMITTEE/ NOMINATING
DIVIDEND AND
AUDIT AND PRICING GOVERNANCE VALUATION
BOARD COMMITTEE COMMITTEE COMMITTEE COMMITTEE
FUND MEETINGS MEETINGS MEETINGS MEETINGS MEETINGS
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
MACQUARIE/FIRST TRUST GLOBAL 7 8 4 4 5
INFRASTRUCTURE/ UTILITIES
DIVIDEND & INCOME FUND(1)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST ENERGY INCOME AND 7 8 4 4 5
GROWTH FUND(1)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST ENHANCED EQUITY 7 9 4 4 5
INCOME FUND(2)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST MORTGAGE INCOME 7 8 12 4 5
FUND(3)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST/ABERDEEN EMERGING 7 9 4 4 5
OPPORTUNITY FUND(2)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST SPECIALTY FINANCE
AND FINANCIAL OPPORTUNITIES 7 8 4 4 5
FUND(1)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST ENERGY 7 8 12 4 5
INFRASTRUCTURE FUND(1)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST MLP AND ENERGY 7 8 12 4 5
INCOME FUND(3)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST INTERMEDIATE
DURATION PREFERRED & INCOME 7 8 12 4 5
FUND(3)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST NEW OPPORTUNITIES 7 8 12 4 5
MLP & ENERGY FUND(3)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
FIRST TRUST DYNAMIC EUROPE 7 9 12 4 5
EQUITY INCOME FUND(2)
-------------------------------- ----------------- ----------------- ----------------- ----------------- -----------------
(1) For fiscal year ended November 30, 2019.
(2) For fiscal year ended December 31, 2019.
(3) For fiscal year ended October 31, 2019.
[BLANK BACK COVER]
FORM OF PROXY CARD
------------------
EVERY SHAREHOLDER'S VOTE IS IMPORTANT
EASY VOTING OPTIONS:
VOTE BY TELEPHONE OR THROUGH THE INTERNET BY FOLLOWING THE INSTRUCTIONS ON THE
PROXY CARD. IF YOU NEED ANY ASSISTANCE, OR HAVE ANY QUESTIONS REGARDING THE
PROPOSAL OR HOW TO VOTE YOUR SHARES, PLEASE CALL THE FUND'S PROXY SOLICITOR, AST
FUND SOLUTIONS, LLC, AT (800) 284-1755 WEEKDAYS FROM 9:00 A.M. TO 10:00 P.M.
EASTERN TIME.
--------------------------------------------------------------------------------
-17-
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EXHIBIT A
FORM OF NEW INVESTMENT SUB-ADVISORY AGREEMENT
INVESTMENT SUB-ADVISORY AGREEMENT
AGREEMENT made as ofMAIL
Vote, sign and date this __ day of __________, 2018 byProxy
Card and among First
Trust Dynamic Europe Equity Income Fund, a Massachusetts business trust (the
"Fund"), First Trust Advisors L.P., an Illinois limited partnership (the
"Manager") and a registered investment adviser with the Securities and Exchange
Commission ("SEC"), and Janus Capital Management LLC, a Delaware limited
liability company and a registered investment adviser with the SEC (the
"Sub-Adviser").
WHEREAS, the Fund is a closed-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Fund has retained the Manager to serve as the investment
manager for the Fund pursuant to an Investment Management Agreement between the
Manager and the Fund (the "Management Agreement") to manage the investment and
reinvestment of assets of the Fund in accordance with the Fund's investment
objective and policies and limitations, as the same may be amended from time to
time;
WHEREAS, the Management Agreement provides that the Manager may, subject
to certain requirements, appoint a sub-adviser at its own cost and expense for
the purpose of furnishing certain services required under the Management
Agreement;
WHEREAS, the Fund and the Manager desire to retain the Sub-Adviser to
furnish investment advisory services in accordance with the Fund's investment
objective and policies and limitations assigned to the Sub-Adviser and describedreturn in the
Fund's most recent effective registration statement and as such
objective, policies and limitations may be amended from time to time for the
assets of the Fund's investment portfolio the Manager allocates to the
Sub-Adviser from time to time (the "Sub-Adviser's Strategy"), upon the terms and
conditions hereafter set forth;
WHEREAS, the Fund will also apply a strategy of writing call options on
portfolio equity securities, custom baskets of individual securities and certain
broad-based securities indices in accordance with the Fund's investment
objective and policies and limitations (the "Call Writing Strategy") assigned to
the Manager and described in the Fund's most recent effective registration
statement and as such objective, policies and limitations may be amended from
time;
WHEREAS, the Manager may make portfolio investment decisions for purchases
and sales of securities and other assets of the Fund with respect to investment
strategies not assigned to the Sub-Adviser, including the Call Writing Strategy
(the "Manager's Strategy");
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
1. Appointments. The Fund and the Manager hereby appoint the Sub-Adviser
to provide certain investment sub-advisory services to the Fund solely with
respect to the Sub-Adviser's Strategy for the period and on the terms set forth
in this Agreement. The Sub-Adviser accepts such appointment and agrees to
furnish the services herein set forth for the compensation herein provided. The
Sub-Adviser shall, for all purposes herein provided, be deemed an independent
contractor and, unless otherwise expressly provided or authorized, shall have no
authority to act for nor represent the Fund or the Manager in any way, nor
otherwise be deemed an agent of the Fund or the Manager. Without limiting the
generality of the foregoing, the Sub-Adviser shall have no duty to (a) implement
the Manager's Strategy, (b) review, monitor or advise upon the performance of
the Manager or its delegates in implementing the Manager's Strategy, (c) assist
with the selection of brokers or other counterparties for the Manager's
Strategy, or (d) determine the amount of Fund assets devoted to the Manager's
Strategy and the levels of risk assumed by the Fund in the Manager's Strategy.
This appointment shall be non-exclusive and nothing in this Agreement
shall affect or limit the right of the Sub-Adviser to undertake any other
business or venture whatsoever or provide the Fund or the Manager with any right
or claim on the income or revenues of any such other business or venture,
subject to exception for any liabilities the Sub-Adviser may have under Section
7 below.
2. Services to Be Performed. Subject always to the supervision of the
Fund's Board of Trustees (the "Board of Trustees" or the "Board") and the
Manager, the Sub-Adviser will act as sub-adviser for, and manage on a
discretionary basis the investment and reinvestment of the assets of the Fund
assigned to the Sub-Adviser by the Manager from time to time in the
Sub-Adviser's Strategy, furnish an investment program in respect of, make
investment decisions for, and place all orders for the purchase and sale of
securities or other assets for the Fund's investment portfolio in the
Sub-Adviser's Strategy, all on behalf of the Fund and as described in the Fund's
most recent effective registration statement on Form N-2 and as the same and
such investment policies described therein may thereafter be amended from time
to time and communicated by the Fund or the Manager in writing the Sub-Adviser.
The Sub-Adviser shall also provide U.S. regulatory and compliance oversight with
respect to the Fund's investment portfolio in the Sub-Adviser's Strategy and any
sub-adviser appointed pursuant to Section 3 hereof. In the performance of its
duties, the Sub-Adviser will (a) satisfy any applicable fiduciary duties it may
have to the Fund; (b) monitor the Fund's investments in the Sub-Adviser's
Strategy; (c) comply with the provisions of the Fund's Declaration of Trust and
By-laws, as amended from time to time and communicated by the Fund or the
Manager to the Sub-Adviser; (d) comply with (i) the investment objective,
policies and restrictions of the Fund stated in the Fund's most recent effective
prospectus and statement of additional information, (ii) such other investment
objective, policies, restrictions or instructions as the Manager or the Fund's
Board of Trustees may communicate to the Sub-Adviser in writing, and (iii) any
changes to the objective, policies, restrictions or instructions required under
the foregoing (i) and (ii) as communicated to the Sub-Adviser in writing; (e)
assist in the valuation of portfolio assets held by the Fund in the
Sub-Adviser's Strategy as reasonably requested by the Manager; and (f)
communicate as necessary with the Manager to coordinate the implementation of
the Manager's Strategy. The Sub-Adviser and the Manager will also each make its
officers and employees available to the other from time to time at reasonable
times to review the investment objective, policies and restrictions of the Fund
and to consult with each other regarding the investment affairs of the Fund. The
Fund or the Manager shall provide the Sub-Adviser with current copies of the
Fund's Declaration of Trust, By-laws, prospectus, statement of additional
information and any amendments thereto, and any objective, policies or
limitations not appearing therein as they may be relevant to the Sub-Adviser's
performance under this Agreement.
Unless otherwise provided by the Manager in writing, the Sub-Adviser is
authorized to select the brokers, dealers, futures commission merchants, banks
or any other agent or counterparty that will execute the purchases and sales of
portfolio investments for the Fund in the Sub-Adviser's Strategy, and is
directed to use its commercially reasonable efforts to obtain best execution in
such a manner that the Fund's total cost or proceeds in each transaction is the
most favorable under the circumstances, taking into account all
A-2
appropriate factors, including, among other things, price, dealer spread or
commission, size and difficulty of the transaction and research or other
services provided. Subject to approval by the Fund's Board of Trustees and
compliance with the policies and procedures adopted by the Board of Trustees for
the Fund and communicated by the Fund or the Manager in writing to the
Sub-Adviser and to the extent permitted by and in conformance with applicable
law (including Rule 17e-1 under the 1940 Act), the Sub-Adviser may select
brokers or dealers affiliated with the Sub-Adviser. It is understood that the
Sub-Adviser will not be deemed to have acted unlawfully, or to have breached a
fiduciary duty to the Fund or the Manager, or be in breach of any obligation
owing to the Fund under this Agreement, or otherwise, solely by reason of its
having caused the Fund to pay a member of a securities exchange, a broker or a
dealer a commission for effecting a securities transaction for the Fund in
excess of the amount of commission another member of an exchange, broker or
dealer would have charged if the Sub-Adviser determined in good faith that the
commission paid was reasonable in relation to the value of brokerage or research
services provided by such member, broker or dealer, viewed in terms of that
particular transaction or the Sub-Adviser's overall responsibilities with
respect to its accounts, including the Fund, as to which it exercises investment
discretion. The Fund and the Manager shall instruct the custodian for the Fund
to accept and act upon instructions for purchases and sales of portfolio
securities and other investment transactions for the account of the Fund issued
by the Sub-Adviser pursuant to this Agreement.
In addition, the Sub-Adviser may, to the extent permitted by applicable
law, aggregate purchase and sale orders of securities or other instruments
placed with respect to the assets of the Fund with similar orders being made
simultaneously for other accounts managed by the Sub-Adviser or its affiliates
to attempt to obtain more favorable price or lower brokerage commissions and
efficient execution, if in the Sub-Adviser's reasonable judgment such
aggregation is in the best interest of the Fund as well as such other accounts.
In the event that a purchase or sale of an asset of the Fund occurs as part of
any aggregate sale or purchase orders, the objective of the Sub-Adviser and any
of its affiliates involved in such transaction shall be to allocate the assets
so purchased or sold, as well as expenses incurred in the transaction, among the
Fund and other accounts in a fair and equitable manner. Nevertheless, the Fund
and the Manager acknowledge that under some circumstances, such allocation may
adversely affect the Fund with respect to, among other things, the price or size
of the assets obtainable or salable. Whenever the Fund and one or more other
investment advisory clients of the Sub-Adviser have available funds for
investment, investments suitable and appropriate for each will be allocated in a
manner believed by the Sub-Adviser to be equitable to each, although such
allocation may result in a delay in one or more client accounts being fully
invested that would not occur if such an allocation were not made. Moreover, it
is possible that due to differing investment objective or for other reasons, the
Sub-Adviser and its affiliates may purchase securities or other instruments of
an issuer for one client and at approximately the same time recommend selling or
sell the same or similar types of securities, assets or instruments for another
client.
The Sub-Adviser will not arrange purchases or sales of securities or other
assets between the Fund and other accounts advised by the Sub-Adviser or its
affiliates unless (a) such purchases or sales are in accordance with applicable
law (including Rule 17a-7 under the 1940 Act) and the Fund's policies and
procedures that have been communicated by the Fund or the Manager in writing to
the Sub-Adviser, (b) the Sub-Adviser determines the purchase or sale is in the
best interests of the Fund, and (c) the Fund's Board of Trustees has approved
these types of transactions.
The Fund may adopt policies and procedures that modify or restrict the
Sub-Adviser's authority regarding the execution of the Fund's portfolio
transactions provided herein, provided that no such policy or procedure shall
A-3
bind the Sub-Adviser until it has been communicated by the Fund or the Manager
in writing to the Sub-Adviser.
The Sub-Adviser acknowledges that the Fund intends to rely on with Rule
10f-3, Rule 12d3-1, Rule 17a-10 and Rule 17e-1 under the 1940 Act, and the
Sub-Adviser hereby agrees that it will not consult with any other sub-adviser of
an investment company or a series of an investment company that is advised by
the Manager (the "First Trust Fund complex") or consult with an affiliated
person of any such sub-adviser (including any sub-adviser that is a principal
underwriter or an affiliated person of such principal underwriter), in each case
concerning transactions for the Fund or any fund in the First Trust Fund complex
in securities or other fund assets. A list of each sub-adviser to the First
Trust Fund Complex and each affiliated person of any such sub-adviser is
provided by the Manager, and the Manager will promptly notify Sub-Adviser of any
amendments to such list. In addition, with respect to a fund in the First Trust
Fund complex with multiple sub-advisers, the Sub-Adviser shall be limited to
providing investment advice with respect to only the discrete portion of the
fund's portfolio as may be determined from time-to-time by the Board of Trustees
or the Manager, and shall not consult with the sub-adviser (including any
sub-adviser that is a principal underwriter or an affiliated person of such
principal underwriter) as to any other portion of the fund's portfolio
concerning transactions for the fund in securities or other assets.
Notwithstanding the foregoing, the provisions in this paragraph do not apply to
the consultations between the Sub-Adviser and any sub-adviser retained by the
Sub-Adviser, pursuant to Section 3 hereunder.
The Sub-Adviser will communicate to the officers and Trustees of the Fund
such information relating to transactions for the Fund in the Sub-Adviser's
Strategy as they may reasonably request. In no instance will the Fund's
portfolio assets be purchased from or sold to the Manager, the Sub-Adviser or
any affiliated person of any of the Fund, the Manager, or the Sub-Adviser,
except as may be permitted under the 1940 Act and under no circumstances will
the Sub-Adviser select brokers or dealers for Fund transactions on the basis of
Fund share sales by such brokers or dealers.
The Sub-Adviser is hereby authorized to vote proxies at its sole
discretion in accordance with its Proxy Voting Policy, a copy of which will be
provided to the Fund at the Fund's request.
The Sub-Adviser shall not be required to render any legal advice or
initiate litigation with respect to portfolio assets, including, but not limited
to, class action and bankruptcy claims.
The Sub-Adviser further agrees that it:
(a) will use the same degree of skill and care in providing such
services as it uses in providing services to other fiduciary accounts for
which it has investment responsibilities;
(b) will (i) in the performance of its duties under this Agreement
conform in all material respects to all applicable rules and regulations
of the SEC, Commodity Futures Trading Commission and any other applicable
regulatory authority, (ii) in the performance of its duties under this
Agreement comply in all material respects with all policies and procedures
adopted by the Board of Trustees for the Fund and communicated to the
Sub-Adviser in writing and (iii) conduct its activities under this
Agreement in all material respects in accordance with any applicable law
and regulations of any governmental authority pertaining to its investment
advisory, commodity pool operator and commodity trading advisory
activities;
A-4
(c) will report to the Manager and to the Board of Trustees of the
Fund on a quarterly basis and will make appropriate persons available for
the purpose of reviewing with representatives of the Manager and the Board
of Trustees on a regular basis at such times as the Manager or the Board
of Trustees may reasonably request in writing regarding the management of
the Fund, including, without limitation, review of the general investment
strategies of the Fund in the Sub-Adviser's Strategy, the performance of
the Fund's investment portfolio in the Sub-Adviser's Strategy in relation
to relevant standard industry indices and general conditions affecting the
marketplace and will provide various other reports from time to time as
reasonably requested by the Manager or the Board of Trustees of the Fund
in relation to the Sub-Adviser's Strategy; and
(d) will prepare and maintain such books and records with respect to
the Fund's securities and other transactions for the Fund's investment
portfolio, in each case, relating solely to the Sub-Adviser's Strategy as
required for registered investment advisers under applicable law, the
Fund's policies and procedures or as otherwise reasonably requested by the
Manager or the Board and will prepare and furnish the Manager and the
Fund's Board of Trustees such periodic and special reports as the Board or
the Manager may reasonably request. Such records prepared and maintained
by the Sub-Adviser as required hereunder shall be open to inspection at
all reasonable times by the Manager, the Fund and any appropriate
regulatory authorities. The Sub-Adviser further agrees that all records
that it maintains for the Fund are the property of the Fund and the
Sub-Adviser will surrender promptly to the Fund any such records upon the
request of the Manager or the Fund (provided, however, that the
Sub-Adviser shall be permitted to retain copies thereof); and shall be
permitted to retain originals (with copies to the Fund) to the extent
required under Rule 204-2 under the Investment Advisers Act of 1940, as
amended (the "Advisers Act") or other applicable law; and
(e) will monitor the pricing of portfolio assets in the
Sub-Adviser's Strategy, and events relating to the issuers of those assets
and the markets in which the securities or other assets trade in the
ordinary course of managing the portfolio investments of the Fund, and
will notify Manager promptly of any issuer-specific or market events or
other situations that occur (particularly those that may occur after the
close of a foreign market in which the investments may primarily trade but
before the time at which the Fund's investments are priced on a given day)
that may materially impact the pricing of one or more securities or other
assets in Sub-Adviser's portion of the portfolio. In addition, Sub-Adviser
will at the Manager's reasonable request assist Manager in evaluating the
impact that such an event may have on the net asset value of the Fund and
in determining a recommended fair value of the affected investment or
investments.
3. Additional Sub-Advisers; Participating Affiliated Investment Managers.
Subject to obtaining the initial and periodic approvals required under Section
15 of the 1940 Act (after taking into effect any exemptive order, no-action
assurances or other relief, rule or regulation upon which the Fund may rely) and
the approval of the Manager, the Sub-Adviser may retain one or more additional
sub-advisers at the Sub-Adviser's own cost and expense for the purpose of
furnishing one or more of the services described in Section 2 hereof with
respect to the Fund. Retention of a sub-adviser hereunder shall in no way reduce
the responsibilities or obligations of the Sub-Adviser under this Agreement and
the Sub-Adviser shall be responsible to the Fund for all acts or omissions of
any sub-adviser in connection with the performance of the Sub-Adviser's duties
hereunder.
Subject to applicable law, including the 1940 Act and the Advisers Act,
the rules thereunder, and relevant positions of the SEC and its staff, the
Sub-Adviser, through a participating affiliate arrangement, may retain one or
A-5
more affiliated investment managers at the Sub-Adviser's own cost and expense
for the purpose of furnishing one or more of the services described in Section 2
hereof with respect to the Fund. Any portfolio managers or associated persons of
the Sub-Adviser (within the meaning set forth in the Advisers Act) shall be
subject to the supervision of the Sub-Adviser. A participating affiliate
arrangement shall in no way reduce the responsibilities or obligations of the
Sub-Adviser under this Agreement and the Sub-Adviser shall be responsible to the
Fund for all acts or omissions of any of its participating affiliates in
connection with the performance of the Sub-Adviser's duties hereunder. To the
extent the Sub-Adviser utilizes the services of a participating affiliate, it
will provide the Manager and the Fund with 30 days' prior written notice, which
will include the identity of the participating affiliate, and such other
information as may be requested by the Manager or the Fund.
4. Expenses. During the term of this Agreement, the Sub-Adviser will pay
all its expenses incurred in connection with its activities under this Agreement
other than the cost of securities and other assets (including, but not limited
to, brokerage commissions, stamp duties, currency conversion costs, and other
transaction charges, if any) purchased or otherwise acquired, or sold or
otherwise disposed of, for the Fund, which will be paid by the Fund.
5. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, the Manager will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, a portfolio
management fee (the "Management Fee") equal to the annual rate of 0.50% of the
Fund's Managed Assets (as defined below). For purposes of calculating the
Management Fee, Managed Assets means the average daily gross asset value of the
Fund (which includes assets attributable to the Fund's leverage, if any), minus
the sum of the Fund's accrued and unpaid dividends on any outstanding Preferred
Shares (as such term is defined in the Fund's prospectus), if any, and accrued
liabilities (other than liabilities representing leverage). For purposes of
determining Managed Assets, the liquidation preference of any outstanding
Preferred Shares of the Fund is not treated as a liability. The Management Fee
shall be payable in arrears on or about the first day of each month during the
term of this Agreement.
For the month and year in which this Agreement becomes effective or
terminates, there shall be an appropriate proration on the basis of the number
of days that the Agreement is in effect during the month and year, respectively.
6. Services to Others. The Fund and the Manager acknowledge that the
Sub-Adviser now acts, or may in the future act, as an investment adviser to
other managed accounts and as investment adviser or investment sub-adviser to
one or more other investment companies. In addition, the Fund and the Manager
acknowledge that the persons employed by the Sub-Adviser to assist in its
respective duties under this Agreement will not devote their full time to such
efforts. It is also agreed that the Sub-Adviser may use any supplemental
research obtained for the benefit of the Fund in providing investment advice to
its other investment advisory accounts and for managing its own accounts.
7. Limitation of Liability. The duties of the Sub-Adviser under this
Agreement are limited to those expressly set forth herein and as may be imposed
under applicable law, and no duties of the Sub-Adviser shall be implied under
this Agreement. The Sub-Adviser shall not be liable for, and the Fund and the
Manager will not take any action against the Sub-Adviser to hold the Sub-Adviser
liable for, (a) any error of judgment or mistake of law or for any loss suffered
by the Fund or the Manager (including, without limitation, by reason of the
purchase, sale or retention of any security) in connection with the performance
of the Sub-Adviser's duties under this Agreement or (b) any loss, liability,
A-6
expenses, or damages suffered or incurred by the Fund or the Manager in relation
to the Manager's Strategy, including, without limitation, by reason of any
failure to follow investment policies or restrictions of the Manager's Strategy,
except in either (a) or (b) of this Section, the Sub-Adviser shall be liable for
a loss resulting from willful misfeasance, bad faith or gross negligence on the
part of the Sub-Adviser in the performance of its duties under this Agreement,
or by reason of the Sub-Adviser's reckless disregard of its obligations and
duties under this Agreement.
8. Term; Termination. This Agreement shall become effective with respect
to the Fund on the date first set forth above (the "Effective Date"), provided
that it has been approved in the manner required by the 1940 Act (after taking
into effect any exemptive order, no-action assurances or other relief, rule or
regulation upon which the Fund may rely), and shall remain in full force until
the two-year anniversary of the Effective Date unless sooner terminated as
hereinafter provided. This Agreement shall continue in force from year to year
thereafter, but only as long as such continuance is specifically approved for
the Fund at least annually in the manner required by the 1940 Act and the rules
and regulations thereunder (after taking into effect any exemptive order,
no-action assurances or other relief, rule or regulation upon which the Fund may
rely); provided, however, that if the continuation of this Agreement is not
approved for the Fund, the Sub-Adviser may continue to serve in its respective
capacity for the Fund in the manner and to the extent permitted by the 1940 Act
and the rules and regulations thereunder.
This Agreement shall automatically terminate in the event of its
assignment and may be terminated at any time without the payment of any penalty
by the Manager or the Sub-Adviser upon sixty (60) days' written notice to the
other parties. This Agreement may also be terminated by the Fund by action of
the Board of Trustees or by a vote of a majority of the outstanding voting
securities of the Fund upon sixty (60) days' written notice to the Sub-Adviser
by the Fund without payment of any penalty.
This Agreement may be terminated at any time without the payment of any
penalty by the Manager, the Board of Trustees or by vote of a majority of the
outstanding voting securities of the Fund in the event that it shall have been
established by a court of competent jurisdiction that the Sub-Adviser or any
officer or director of the Sub-Adviser has taken any action that results in a
breach of the material covenants of the Sub-Adviser set forth herein.
The terms "assignment" and "vote of a majority of the outstanding voting
securities" shall have the meanings set forth in the 1940 Act and the rules and
regulations thereunder.
This Agreement shall automatically terminate in the event the Management
Agreement between the Manager and the Fund is terminated, assigned or not
renewed.
Termination of this Agreement shall not affect the right of the
Sub-Adviser to receive payments on any unpaid balance of the compensation
described in Section 5 earned prior to such termination and for any additional
period during which the Sub-Adviser serves as such for the Fund, subject to
applicable law. Sections 7, 10 and 11 shall survive termination or the end of
the term of this Agreement. Termination of this Agreement shall not affect any
rights or claims accrued under this Agreement prior to its termination.
9. Compliance Certification. From time to time the Sub-Adviser shall
provide such certifications with respect to Rule 38a-1 under the 1940 Act as are
reasonably requested by the Fund or the Manager. In addition, the Sub-Adviser
will, from time to time, provide a written assessment of its compliance program
A-7
in conformity with current industry standards that is reasonably acceptable to
the Fund to enable the Fund to fulfill its obligations under Rule 38a-1 under
the 1940 Act.
10. Confidentiality. The Sub-Adviser shall treat as confidential and use
only in connection with the Fund in accordance with this Agreement all
non-public information of the Fund and the Manager delivered to the Sub-Adviser
in the course of the Sub-Adviser's performances under this Agreement. The
Manager and the Fund shall treat as confidential and use only in connection with
the Fund in accordance with this Agreement all non-public information of the
Sub-Adviser delivered to the Fund or the Manager in the course of the
Sub-Adviser's performances under this Agreement, including for avoidance of
doubt investment decisions, trading strategies, and investment advice for the
Fund provided by or on behalf of the Sub-Adviser or any other sub-advisers
appointed by the Sub-Adviser under Section 3 ("Recommendations"). The
undertakings in the first two sentences of this paragraph shall not (a) limit
disclosures that are required to be made under applicable laws and regulations;
(b) apply to information that becomes public without a breach of this paragraph
or the next two following paragraphs; or (c) prohibit disclosures on a
confidential basis to lawyers, accountants, bankers, securities brokers, other
sub-advisers appointed by the Sub-Adviser under Section 3, or other service
providers to any of the parties to this Agreement related to the performances
contemplated by this Agreement. The parties acknowledge that any breach of the
undertakings in the first two sentences of this paragraph might result in
immediate, irreparable injury to another party and that, accordingly, equitable
remedies, including ex parte remedies, are appropriate in the event of any
actual, apparent, or threatened breach of any such undertaking. The undertakings
in this paragraph shall apply to derivative works.
The Fund and the Manager shall not use, or permit any of their affiliates
to use, any Recommendations for any purpose other than the management of the
Fund.
11. Sub-Adviser Marks. The Fund and the Manager acknowledge that
associates of the Sub-Adviser own the names "Janus Henderson Group", "Janus
Henderson Investors", and "Janus Henderson", and all related names, marks, and
trade dress (collectively, the foregoing are the "Janus Henderson Marks") and
all associated goodwill. The Fund and the Manager shall not take any action
inconsistent with such ownership, including, without limitation, contesting the
ownership of or validity of the Janus Henderson Marks. All use of the Janus
Henderson Marks under this Agreement inures to the sole benefit of the
Sub-Adviser for and on behalf of the owners of the Janus Henderson Marks. The
Fund and the Manager shall upon request execute and deliver such documents as
the Sub-Adviser may reasonably require to further evidence, assure, and confirm
the foregoing.
It is understood that the Fund and the Manager have the right to use the
Janus Henderson Marks in offering materials or promotional or sales-related
materials of the Fund, only with the prior written approval of the Sub-Adviser,
such approval not to be unreasonably withheld, and for so long as the
Sub-Adviser is Sub-Adviser of the Fund, except to the extent required by law.
Notwithstanding the foregoing, the Sub-Adviser's approval is not required when
(i) previously approved materials are re-issued with minor modifications, (ii)
the Manager and Sub-Adviser identify materials which they jointly determine do
not require the Sub-Adviser's approval and (iii) used as required to be
disclosed in the registration statement of the Fund. Upon termination of this
Agreement, the Fund and the Fund shall forthwith cease to use such name (or
derivative or logo) except to the extent required by law.
12. Notice. Any notice under this Agreement shall be sufficient in all
respects if given in writing and delivered by commercial courier providing proof
of delivery and addressed as follows or addressed to such other person or
address as such party may designate for receipt of such notice.
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If to the Manager or the Fund: If to the Sub-Adviser:
First Trust Dynamic Europe Equity Income Fund Janus Capital Management LLC
First Trust Advisors L.P. _________________________________postage-paid envelope
VOTE IN PERSON
Attend Shareholder Meeting
120 E. Liberty Drive, Suite 400
_________________________________
Wheaton, Illinois 60187
Attention: U.S. Legal Department
Attention: Secretary
13. Limitations on Liability. All parties hereto are expressly put on
notice of the Fund's Declaration of Trust and all amendments thereto, a copy of
which is on file with the Secretary of the Commonwealth of Massachusetts, and
the limitation of shareholder and trustee liability contained therein and a copy
of which has been provided to the Sub-Adviser prior to the date hereof. This
Agreement is executed on behalf of the Fund by the Fund's officers in their
capacity as officers and not individually and is not binding upon any of the
Trustees, officers or shareholders of the Fund individually but the obligations
imposed upon the Fund by this Agreement are binding only upon the assets and
property of the Fund, and persons dealing with the Fund must look solely to the
assets of the Fund for the enforcement of any claims.
14. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement will be binding upon and shall inure to the benefit of the parties
hereto and their respective successors.
15. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and (except as to Section 13 hereof, which shall be
construed in accordance with the laws of the Commonwealth of Massachusetts) the
laws of the State of Illinois.
16. Amendment, Etc. This Agreement may only be amended, or its provisions
modified or waived, in a writing signed by the party against which such
amendment, modification or waiver is sought to be enforced.
17. Authority. Each party represents to the others that it is duly
authorized and fully empowered to execute, deliver and perform this Agreement.
The Fund represents that engagement of the Sub-Adviser has been duly authorized
by the Fund and is in accordance with the Fund's Declaration of Trust and other
governing documents of the Fund.
18. Severability. Each provision of this Agreement is intended to be
severable from the others so that if any provision or term hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not
affect the validity of the remaining provisions and terms hereof; provided,
however, that the provisions governing payment of the Management Fee described
in Section 5 are not severable.
19. Third Party Beneficiaries. None of the provisions of this Agreement
shall be for the benefit of, or enforceable by, any person or entity that is not
a party hereto.
20. Forum Selection. Any action brought on or with respect to this
Agreement or any other document executed in connection herewith or therewith by
a party to this Agreement against another party to this Agreement shall be
brought only in a court of competent jurisdiction in Chicago, Cook County,
A-9
Illinois, or if venue does not lie in any such court only in a court of
competent jurisdiction within the State of Illinois (the "Chosen Courts"). Each
party to this Agreement (a) consents to jurisdiction in the Chosen Courts; (b)
waives any objection to venue in any of the Chosen Courts; and (c) waives any
objection that any of the Chosen Courts is an inconvenient forum. In any action
commenced by a party hereto against another party to the Agreement, there shall
be no right to a jury trial. THE RIGHT TO A TRIAL BY JURY IS EXPRESSLY WAIVED TO
THE FULLEST EXTENT PERMITTED BY LAW.
21. Entire Agreement. This Agreement constitutes the sole and entire
agreement of the parties hereto with respect to the subject matter expressly set
forth herein.
IN WITNESS WHEREOF, the Fund, the Manager and the Sub-Adviser have caused
this Agreement to be executed as of the day and year first above written.
FIRST TRUST ADVISORS L.P. JANUS CAPITAL MANAGEMENT LLC
By By
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Title: Title:
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FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND
By
----------------------------------
Title:
----------------------------
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This page intentionally left blank.
FORMApril 22, 2020
Please detach at perforation before mailing.
PROXY
[NAME OF PROXY CARD
------------------
FIRST TRUST
PROXY CARD
SIGN, DATE AND VOTE ON THE REVERSE SIDE
YOUR VOTE IS IMPORTANT NO MATTER PROXY VOTING OPTIONS
HOW MANY SHARES YOU OWN. PLEASE
CAST YOUR PROXY VOTE TODAY! 1. MAIL your signed and voted proxy back in
the postage paid envelope provided
2. ONLINE at PROXYONLINE.COM using your
proxy control number found below
SHAREHOLDER NAME
AND ADDRESS HERE 3. By PHONE when you dial toll-free 1-888-
227-9349 to reach an automated touchtone
voting line
4. By PHONE with a live operator when you
call toll-free 1-800-284-1755 Monday
through Friday 9 a.m. to 10 p.m. Eastern
time
CONTROL
PLEASE CAST YOUR PROXY VOTE TODAY! NUMBER
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND (FDEU)
PROXY FOR A SPECIALFUND]
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON APRIL 23, 201822, 2020
PROXY SOLICITED BY THE BOARD OF TRUSTEES
The undersigned holder of shares of the First Trust Dynamic Europe Equity Income
Fund (the "Fund")[NAME OF FUND], a Massachusetts
business trust, hereby appoints W. Scott Jardine, Kristi A. Maher, James M.
Dykas, Donald P. Swade and Erin E. Klassman as attorneys and proxies for the
undersigned, with full powers of substitution and revocation, to represent the
undersigned and to vote on behalf of the undersigned all shares of the Fund that
the undersigned is entitled to vote at the SpecialAnnual Meeting of Shareholders of the
Fund (the "Meeting") to be held at the Austin,
TexasWheaton, Illinois offices of First Trust
Advisors L.P., 500 W. 5th Street,120 E. Liberty Drive, Suite 9202,
Austin, TX 78701,400, Wheaton, Illinois 60187, at
12:00 Noon Central Time on April 23, 2018, at 11:45 a.m. Central time,the date indicated above, and any adjournments or
postponements thereof.
The undersigned hereby acknowledges receipt of the Notice of Special MeetingJoint Annual
Meetings of Shareholders and Joint Proxy Statement dated March 15, 2018,11, 2020,
and hereby instructs said attorneys and proxies to vote said shares as indicated
hereon. In their discretion, the proxies are authorized to vote upon such other
business as may properly come before the Meeting and any adjournments or
postponements thereof (including, but not limited to, any questions as to
adjournments or
postponements of the Meeting). A majority of the proxies present and acting at
the Meeting in person or by substitute (or, if only one shall be so present,
then that one) shall have and may exercise all of the power and authority of
said proxies hereunder. The undersigned hereby revokes any proxy previously
given. THIS PROXY, IF PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED BY
THE UNDERSIGNED SHAREHOLDER.This proxy, if properly executed, will be voted in the manner directed by
the undersigned shareholder. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED
FOR THE FUND'S PROPOSAL SET FORTH ON THE REVERSE SIDE OF THIS PROXY CARD.
THIS PROXY IS SOLICITED ON BEHALFELECTION OF THE BOARD OF TRUSTEES, AND THE PROPOSAL
FOR THE FUND (SET FORTH ON THE REVERSE SIDE OF THIS PROXY CARD) HAS BEEN
APPROVED BY THE BOARD OF TRUSTEES AND RECOMMENDED FOR APPROVAL BY SHAREHOLDERS.
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN.
IF NO SUCH DIRECTIONNOMINEE SET FORTH.
----------------------- -------------------
----------------------- -------------------
XXXX_331138_031120
EVERY SHAREHOLDER'S VOTE IS MADE, THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE
BOARD OF TRUSTEES' RECOMMENDATION.
DO YOU HAVE QUESTIONS? If you have any questions about how to vote your proxy or
about the Meeting in general, please call toll-free 1-800-284-1755.
REPRESENTATIVES ARE AVAILABLE TO ASSIST YOU Monday through Friday 9 a.m. to 10
p.m. Eastern Time.IMPORTANT
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
SPECIALANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON APRIL 23, 2018.
The proxy statement of the Fund is available at:
www.proxyonline.com/docs/firsttrustdynamiceuropeequityincomefund2018.pdf
--------------------------------------------------------------------------------
[PROXY ID NUMBER HERE] [BAR CODE HERE] [CUSIP HERE]
FIRST TRUST DYNAMIC EUROPE EQUITY INCOME FUND22, 2020
THE JOINT PROXY STATEMENT AND PROXY CARD YOUR SIGNATURE IS REQUIRED FOR YOUR VOTE TO BE
COUNTED. The signer(s) acknowledges receipt of
the Proxy Statement of the Fund. Your _____________________________
signature(s) on this Proxy should be exactly SIGNATURE (AND TITLE DATE
as your name(s) appear on this Proxy (reverse IF APPLICABLE)
side). If the shares are held jointly, each
holder should sign this Proxy.
Attorneys-in-fact, executors, administrators, ______________________________
trustees or guardians should indicate the full SIGNATURE (IF DATE
title and capacity in which they are signing. HELD JOINTLY)
--------------------------------------------------------------------------------
IF YOU VOTE ONLINE OR BY PHONE, YOU NEED NOT RETURN THIS PROXY CARD.MEETING ARE AVAILABLE AT:
https://www.proxy-direct.com/fir-31138
Please detach at perforation before mailing.
THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE
VOTED "FOR" THE PROPOSALELECTION OF THE NOMINEE SET FORTH BELOW.FORTH.
TO VOTE, MARK ONE CIRCLEA BLOCK BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example:SHOWN IN THIS
EXAMPLE: [X]
THE BOARD OF TRUSTEES RECOMMENDS A VOTE "FOR"
THE FUND'S PROPOSAL
SET FORTH BELOW.1. Election of One Class I Trustee.
The Board of Trustees recommends that you vote FOR AGAINST ABSTAIN
1 To approve,the election of the
Class I Nominee for a new investment sub-advisory
agreement among the Fund, First Trustthree-year term.
FOR WITHHOLD
01. Robert F. Keith [ ] [ ]
[ ]
Advisors L.P.B AUTHORIZED SIGNATURES -- THIS SECTION MUST BE COMPLETED FOR YOUR VOTE TO BE
COUNTED. -- SIGN AND DATE BELOW
NOTE: Please sign exactly as your name(s) appear(s) on this Proxy Card,
and Janus Capital Management LLC.
THANK YOU FOR VOTING
[PROXY ID NUMBER HERE] [BAR CODE HERE] [CUSIP HERE]
date it. When shares are held jointly, each holder should sign.
When signing as attorney, executor, guardian, administrator, trustee,
officer of corporation or other entity or in another representative
capacity, please give the full title under the signature.
DATE (mm/dd/yyyy)-- SIGNATURE 1--Please keep SIGNATURE 2--Please keep
Please print date below signature within the box signature within the box
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