First Trust Advisors L.P. (“FTA”) announced today that the reorganization of EquityCompass Tactical Risk Manager ETF (NYSE Arca: TERM), an actively managed exchange-traded fund (“ETF”), managed by FTA, into EquityCompass Risk Manager ETF (NYSE Arca: ERM), an actively managed ETF managed by FTA, was completed prior to the open of the NYSE Arca on October 18, 2021.

As previously announced, the shareholders of TERM and ERM approved TERM’s reorganization into ERM at a Joint Special Meeting of Shareholders on September 13, 2021. The reorganization was previously approved by the Board of Trustees of each of TERM and ERM.

In the reorganization, the assets of TERM were transferred to, and the liabilities of TERM were assumed by, ERM. The shareholders of TERM received shares of ERM with a value equal to the aggregate net asset value of the shares of TERM held by them. The exchange of shares took place based upon TERM’s and ERM’s closing net asset values on October 15, 2021. The exchange ratio at which shares of TERM were exchanged for shares of ERM is 0.870700.

ERM is an actively managed ETF that seeks to provide long term capital appreciation with capital preservation as a secondary objective. ERM pursues these investment objectives by investing in equity securities of companies domiciled in the United States or listed on a U.S. securities exchange. ERM may also invest all or a portion of its assets in cash, cash equivalents and short-term fixed income exchange-traded funds.

FTA is a federally registered investment advisor and served as the investment advisor of TERM and ERM. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $207 billion as of September 30, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois. ERM and TERM were both sub-advised by EquityCompass Investment Management, LLC (“EquityCompass”). ERM continues to be managed by FTA and sub-advised by EquityCompass.

This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of ERM. An investor should carefully consider the investment objectives, risks, charges and expenses of ERM before investing. The prospectus for ERM contains this and other important information and is available free of charge by calling First Trust Portfolios L.P. at 1-800-621-1675 or visiting www.ftportfolios.com. The prospectus should be read carefully before investing.

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