If You Invested in First Trust RiverFront Dynamic Eurp ETF (RFEU)

The ticker RFEU has represented the First Trust RiverFront Dynamic Europe ETF, a series of First Trust Exchange-Traded Fund III. According to First Trust Advisors L.P. ("FTA"), the investment advisor of the fund, the Board of Trustees of First Trust Exchange-Traded Fund III approved a plan of liquidation and termination for the First Trust RiverFront Dynamic Europe ETF. This means RFEU is associated with an exchange-traded fund that has been scheduled for liquidation and delisting.

Based on the announcement by FTA, the Board of Trustees determined that it was in the best interests of the fund to liquidate the First Trust RiverFront Dynamic Europe ETF. The board approved the liquidation of the fund pursuant to a formal plan of liquidation and termination. As part of this process, shareholders were given the opportunity to sell their holdings in the fund prior to the end of the trading day on a specified date, after which the fund’s shares were scheduled to be de-listed and the fund to be liquidated on or around a later specified date.

Under the plan of liquidation, any person holding shares in the fund as of the applicable liquidation date is expected to receive a cash redemption amount. According to the announcement, this amount is equal to the net asset value of such shares after the fund has discharged and/or made reasonable provisions for the payment of all of its charges, taxes, expenses and liabilities. The announcement also notes that shareholders generally will recognize a capital gain or loss on any redemption of their shares in the fund.

To prepare for termination and liquidation, the fund’s portfolio managers may increase the fund’s assets held in cash and similar instruments. As described by FTA, this means that, as the liquidation date approaches, the fund is expected to deviate from its stated investment strategies and policies and will no longer be managed to meet its investment objective. This reflects the typical winding-down process for an exchange-traded fund that is being closed and liquidated.

FTA is identified in the announcement as a federally registered investment advisor and serves as the fund’s investment advisor. FTA and its affiliate, First Trust Portfolios L.P. ("FTP"), are described as privately held companies that provide a variety of investment services. The announcement states that FTA has collective assets under management or supervision through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separately managed accounts (SMAs). FTA is described as the supervisor of First Trust unit investment trusts, while FTP is the sponsor and also a distributor of mutual fund shares and exchange-traded fund creation units.

Because the First Trust RiverFront Dynamic Europe ETF has been approved for liquidation and its shares were scheduled to be de-listed following a specified final trading date, RFEU should be viewed in a historical context. The ticker relates to a fund that has undergone a formal termination process rather than an ongoing, actively managed exchange-traded product. Investors researching RFEU are therefore typically examining the history of this fund, the terms of its liquidation, and the role of First Trust Advisors L.P. and First Trust Portfolios L.P. in managing and distributing the product.

RFEU trading and liquidation status

According to the FTA announcement, shareholders could sell their holdings in the fund up to a specified final trading day, after which the fund’s shares would be de-listed and the fund would liquidate on or around a stated liquidation date. The fund’s last day to accept creation and redemption orders was aligned with that final trading day. After liquidation, remaining shareholders are to receive cash based on the fund’s net asset value, net of charges, taxes, expenses and liabilities.

Role of First Trust Advisors L.P. and First Trust Portfolios L.P.

The announcement identifies FTA as the investment advisor to the First Trust RiverFront Dynamic Europe ETF and as a federally registered investment advisor. It further notes that FTA and FTP are privately held companies based in Wheaton, Illinois. FTA is described as supervising First Trust unit investment trusts, while FTP is described as the sponsor of those unit investment trusts and as a distributor of mutual fund shares and exchange-traded fund creation units.

Key points for investors researching RFEU

• RFEU has been associated with the First Trust RiverFront Dynamic Europe ETF, a series of First Trust Exchange-Traded Fund III.
• The Board of Trustees of First Trust Exchange-Traded Fund III approved a plan of liquidation and termination for this fund based on the recommendation of FTA.
• Shareholders were able to sell shares up to a specified final trading day, after which the fund’s shares were scheduled to be de-listed and the fund to be liquidated on or around a specified liquidation date.
• Shareholders holding shares as of the liquidation date are to receive a cash redemption amount equal to the net asset value of their shares after provision for charges, taxes, expenses and liabilities.
• In preparation for liquidation, the fund’s portfolio managers may increase holdings in cash and similar instruments, and the fund is expected to deviate from its stated investment strategies and no longer be managed to meet its investment objective.
• FTA serves as the fund’s investment advisor, and together with FTP provides investment-related services across various vehicles such as unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and SMAs.

FAQs about RFEU and the First Trust RiverFront Dynamic Europe ETF

• What did the ticker RFEU represent?
  The ticker RFEU represented the First Trust RiverFront Dynamic Europe ETF, which is a series of First Trust Exchange-Traded Fund III. This association is described in an announcement by First Trust Advisors L.P.
• What happened to the First Trust RiverFront Dynamic Europe ETF?
  According to First Trust Advisors L.P., the Board of Trustees of First Trust Exchange-Traded Fund III approved the liquidation and termination of the First Trust RiverFront Dynamic Europe ETF pursuant to a plan of liquidation. The fund’s shares were scheduled to be de-listed following a final trading day, and the fund to be liquidated on or around a specified date.
• Will shareholders in RFEU receive cash for their shares?
  The announcement states that any person holding shares in the fund as of the applicable liquidation date will receive a cash redemption amount equal to the net asset value of such shares after the fund has discharged and/or made reasonable provisions for all of its charges, taxes, expenses and liabilities.
• How might the liquidation affect the fund’s investment strategy?
  To prepare for termination and liquidation, the announcement notes that the fund’s portfolio managers may increase the fund’s assets held in cash and similar instruments. As a result, the fund is expected to deviate from its stated investment strategies and policies and will no longer be managed to meet its investment objective as the liquidation date approaches.
• Who is the investment advisor for the First Trust RiverFront Dynamic Europe ETF?
  First Trust Advisors L.P. is identified as the investment advisor of the fund. The announcement describes FTA as a federally registered investment advisor that supervises First Trust unit investment trusts and provides investment services across multiple product types.
• What is the role of First Trust Portfolios L.P. in relation to the fund?
  The announcement describes First Trust Portfolios L.P. as a FINRA registered broker-dealer that serves as the sponsor of First Trust unit investment trusts and as a distributor of mutual fund shares and exchange-traded fund creation units, which includes activities related to products such as the First Trust RiverFront Dynamic Europe ETF.
• Does RFEU still trade on an exchange?
  The announcement states that the fund’s shares would be de-listed after a specified final trading day and that the fund would be liquidated on or around a specified liquidation date. This indicates that RFEU is associated with a fund that was scheduled to cease trading and undergo liquidation under the approved plan.
• What kind of tax impact might shareholders face from the liquidation?
  The announcement notes that shareholders generally will recognize a capital gain or loss on any redemption of their shares in connection with the liquidation. The specific tax impact would depend on each shareholder’s individual circumstances.