First Trust Senior Floating Rate Income Fund (NYSE: FCT) folds into Flexible Income ETF FFLX
Rhea-AI Filing Summary
First Trust Senior Floating Rate Income Fund II completed its previously approved reorganization into First Trust Flexible Income ETF (FFLX) before the NYSE opened on August 10, 2026. Shareholders of FCT received FFLX shares with a value equal to the aggregate net asset value of their FCT holdings.
In the transaction, FCT’s assets were transferred to FFLX and FFLX assumed FCT’s liabilities. FCT shareholders had approved the reorganization on June 25, 2026, following approval by the Boards of Trustees of both FCT and FFLX on December 7-8, 2025.
FFLX is an actively managed ETF seeking to maximize current income by investing in income-generating fixed income securities, including corporate debt, bank loans, mortgage-backed and asset-backed securities, collateralized loan obligations and preferred securities. FFLX expects to declare and pay a distribution in August 2026. First Trust Advisors L.P., with approximately $368 billion of assets under management or supervision as of June 30, 2026, serves as investment advisor.
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8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Reorganization completion date: August 10, 2026
Shareholder approval date: June 25, 2026
Board approval dates: December 7-8, 2025
+3 more
6 metrics
Reorganization completion date
August 10, 2026
Reorganization of FCT into FFLX completed prior to NYSE open
Shareholder approval date
June 25, 2026
FCT shareholders approved reorganization into FFLX at Special Meeting
Board approval dates
December 7-8, 2025
Boards of Trustees of FCT and FFLX approved reorganization
Assets under management or supervision
$368 billion
First Trust Advisors L.P. as of June 30, 2026
Par value per share
$0.01
Common stock par value per share listed on NYSE
Telephone contact
1-800-621-1675
Number to request FFLX prospectus
Key Terms
closed-end management investment company, exchange-traded fund, collateralized loan obligations, asset-backed securities, +2 more
6 terms
closed-end management investment company financial
"First Trust Senior Floating Rate Income Fund II, a closed-end management investment company"
A closed-end management investment company is a pooled investment fund that raises a fixed amount of capital by issuing a set number of shares and then lists those shares for trading on an exchange; investors buy and sell shares on the market rather than redeeming them back to the fund. Think of it like a store with a fixed number of bottles on the shelf: the market price can be higher or lower than the underlying value of the assets, which matters to investors because it affects returns, liquidity and income characteristics independent of the fund’s actual holdings.
exchange-traded fund financial
"First Trust Flexible Income ETF (FFLX), an actively managed exchange-traded fund"
An exchange-traded fund (ETF) is a type of investment fund that holds a collection of assets, such as stocks or bonds, and is traded on stock exchanges like individual stocks. It allows investors to buy and sell a diversified group of investments easily and efficiently, often at a lower cost. ETFs provide a simple way to gain exposure to a broad market or specific sectors without having to buy each asset separately.
collateralized loan obligations financial
"including but not limited to corporate debt securities; bank loans; ... collateralized loan obligations; and preferred"
A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.
asset-backed securities financial
"including but not limited to corporate debt securities; bank loans; ... asset-backed securities; collateralized loan"
A type of investment created by pooling many similar cash‑flowing assets — like mortgages, car loans, or credit card receivables — and selling slices of that bundle to investors who then receive the payments those assets generate. Think of it as a fruit basket where buyers earn the fruit sales: investors get steady income but also take on the risk that the underlying loans stop performing or are paid off early. Investors care because these securities can provide predictable yield, portfolio diversification, and varying levels of credit and liquidity risk depending on the quality of the underlying assets.
net asset value financial
"received shares of FFLX with a value equal to the aggregate net asset value of the shares of FCT"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
distribution financial
"FFLX expects to declare and pay a distribution to its shareholders in August 2026"
A distribution is a payment or transfer of value from a company, fund, or trust to its shareholders or unit holders, commonly made in cash, additional shares, or other assets. Investors care because distributions provide income, reflect how much cash a business or fund can return to owners, can influence yield and taxable income, and often affect the share price much like a store handing out a portion of its profits to customers.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did First Trust Senior Floating Rate Income Fund (FCT) disclose in this 8-K?
The 8-K reports that FCT completed its reorganization into the First Trust Flexible Income ETF (FFLX) on August 10, 2026, with FCT assets transferred to FFLX and FCT shareholders receiving FFLX shares of equal aggregate net asset value.
When was the FCT to FFLX reorganization approved and completed for FCT (NYSE: FCT)?
The Boards of FCT and FFLX approved the reorganization on December 7-8, 2025, FCT shareholders approved it on June 25, 2026, and the reorganization was completed before the NYSE open on August 10, 2026.
What is the investment objective of First Trust Flexible Income ETF (FFLX) after FCT’s reorganization?
FFLX is described as an actively managed ETF that seeks to maximize current income by investing in income-generating fixed income securities such as corporate debt, bank loans, mortgage-backed and asset-backed securities, collateralized loan obligations and preferred securities.
Does FFLX plan any distributions following the FCT (FCT) reorganization?
FFLX expects to declare and pay a distribution in August 2026. The disclosure does not state a specific amount, only that a distribution is expected following completion of the reorganization.
How large is First Trust Advisors L.P., the advisor to FFLX and FCT (NYSE: FCT)?
First Trust Advisors L.P. reports approximately $368 billion in assets under management or supervision as of June 30, 2026, across unit investment trusts, ETFs, closed-end funds, mutual funds and separate managed accounts.