Form 497 - Definitive materials
August 21 2023 - 3:31PM
Edgar (US Regulatory)
Rule 497(e)
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 EXCHANGE-TRADED
FUND VII
FIRST TRUST EXCHANGE-TRADED
FUND VIII
FIRST TRUST VARIABLE
INSURANCE TRUST
FIRST TRUST EXCHANGE-TRADED
ALPHADEX® FUND
FIRST TRUST EXCHANGE-TRADED
ALPHADEX® FUND II
FIRST TRUST SERIES FUND
(each a “Trust”)
SUPPLEMENT TO
EACH FUND’S PROSPECTUS
AND STATEMENT OF ADDITIONAL
INFORMATION
August 21,
2023
| 1. | Notwithstanding anything to the contrary in the prospectus of each fund of each Trust (each a “Fund”),
effective as of the date set forth above, the section entitled “Net Asset Value” set forth in each Fund’s prospectus
is hereby deleted and replaced with the following: |
NET ASSET VALUE
The Fund’s net asset value (“NAV”)
is determined as of the close of regular trading (normally 4:00 p.m., Eastern Time) on each day the New York Stock Exchange (“NYSE”)
is open for trading. If the NYSE closes early on a valuation day, the Fund’s NAV will be determined as of that time. The Fund’s
NAV is calculated by dividing the value of the net assets of the Fund (i.e., the value of its total assets less total liabilities) by
the total number of outstanding shares of the Fund, generally rounded to the nearest cent.
Section 2(a)(41) of the 1940 Act provides
that when a market quotation is readily available for a fund’s portfolio investment, it must be valued at the market value. Rule
2a-5 under the 1940 Act (“Rule 2a-5”) defines a readily available market quotation as “a quoted price (unadjusted)
in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily
available if it is not reliable.” If a market quotation is not “readily available,” then the portfolio investment must
be fair valued as determined in good faith by a fund’s board of trustees.
Rule
2a-5 permits a fund’s board of trustees to designate the fund’s investment adviser as its “valuation designee”
to perform fair value determinations, subject to certain conditions. Accordingly, the Fund’s Board has designated First Trust as
its valuation designee (the “Valuation Designee”) pursuant to Rule 2a-5 and has directed the Valuation Designee to
perform the functions required in Rule 2a-5(a) subject to the requirements of Rule 2a-5(b) on behalf of all portfolio investments of the
Fund, subject to the Board’s oversight. First Trust has established a pricing committee (the “Pricing Committee”)
to assist in the administration of the duties of the Valuation Designee. The Valuation Designee has adopted valuation procedures for the
First Trust Funds (the “Valuation Procedures”), a brief summary of which is set forth below.
The Pricing Committee has identified
certain portfolio investments that are routinely categorized as having a readily available market quotation. The market value of an investment
with a readily available market quotation is typically determined on the basis of official closing prices or last reported sale prices
or equivalent price, although this can vary based on investment type and/or the availability of such prices.
The
Pricing Committee has also identified certain portfolio investments that are routinely categorized as fair valued investments. In general,
for such investments, the Fund’s accounting agent will obtain all pricing data for use in valuing such investments from a pricing
service provider approved by the Pricing Committee (each, a “Pricing Service Provider”), subject to the oversight of
the Pricing Committee. Pricing Service Providers typically value non-exchange-traded instruments utilizing a range of market-based inputs
and assumptions. For example, when available, Pricing Service Providers may utilize inputs such as benchmark yields, reported trades,
broker-dealer quotes, spreads, and transactions for comparable instruments. In pricing certain instruments, a Pricing Service Provider
may consider information about an instrument’s issuer or market activity. Pricing Service Provider valuations of non-exchange-traded
instruments generally represent the service’s good faith opinion as to what the holder of an instrument would receive in an orderly
transaction for an institutional round lot position under current market conditions. Certain exchange-traded options, such as FLEX Options,
are typically valued using a model-based price provided by a Pricing Service Provider.
Portfolio
investments trading on foreign exchanges or over-the-counter markets that close prior to the close of the NYSE may be fair valued using
a systematic fair valuation model provided by a Pricing Service Provider. If these foreign securities meet certain criteria in relation
to the valuation model, their valuation is systematically adjusted to reflect the impact of movement in the U.S. market after the close
of certain foreign markets.
If no price is available from a Pricing
Service Provider or if the Pricing Committee has reason to question the accuracy or the reliability of a price supplied for a portfolio
investment or the use of amortized cost, the Pricing Committee will determine the fair value of such portfolio investment in a manner
that it believes most appropriately reflects the fair value of the portfolio investment on the valuation date (a “Special Fair
Value Pricing Situation”). In a Special Fair Value Pricing Situation, the Pricing Committee will determine a fair value price
subject to the process outlined in the Valuation Procedures and based on a consideration of all available information to the Pricing Committee
at the time of the determination.
Additionally, for foreign securities,
if an extraordinary market event occurs between the time the last “current” market quotation is available for a security in
the Fund’s portfolio and the time the Fund’s NAV is determined that calls into doubt whether that earlier market quotation
represents fair value at the time the Fund’s NAV is determined, the Pricing Committee will determine the fair valuation as set forth
in the Valuation Procedures.
Fair value represents a good faith approximation
of the value of a portfolio investment and is the amount the Fund might reasonably expect to receive from the current sale of that investment
in an arm’s-length transaction. Valuing the Fund’s investments using fair value pricing will result in prices that may differ
from current market valuations, if any, and that may not be the prices at which those investments could have been sold during the period
in which the particular fair values were used. While the Valuation Procedures and Valuation Designee’s processes are intended to
result in the Fund’s NAV calculation that fairly reflects the values as of the time of pricing, the fair value determined for a
portfolio instrument may be materially different from the value that could be realized upon the sale of that instrument.
Foreign currencies are translated into
U.S. dollars at the exchange rate of such currencies against the U.S. dollar as provided by a Pricing Service Provider. All assets denominated
in foreign currencies will be converted into U.S. dollars at the exchange rates in effect at the time of valuation.
| 2. | Notwithstanding anything to the contrary in the statement of additional information of each Fund, effective
as of the date set forth above, the section entitled “Determination of Net Asset Value” set forth in each Fund’s statement
of additional information is hereby deleted and replaced with the following: |
DETERMINATION OF NET ASSET VALUE
The
Fund’s net asset value is determined as set forth in the Prospectus in the section entitled “Net Asset Value.”
PLEASE KEEP
THIS SUPPLEMENT WITH YOUR FUND’S PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
First Trust Global Tacti... (NASDAQ:FTGC)
Historical Stock Chart
From Nov 2024 to Dec 2024
First Trust Global Tacti... (NASDAQ:FTGC)
Historical Stock Chart
From Dec 2023 to Dec 2024
