Rule 497 (k)
File No. 333-168727
FIRST TRUST FIRST TRUST SERIES FUND
SUMMARY PROSPECTUS
March 3, 2014
FIRST TRUST PREFERRED SECURITIES
AND INCOME FUND TICKER SYMBOL
Class A FPEAX
Class C FPECX
Class F FPEFX
Class I FPEIX
Class R3 FPERX
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Before you invest, you may want to review the Fund's prospectus, which contains
more information about the Fund and its risks. You can find the Fund's
prospectus and other information about the Fund, including the statement of
additional information and most recent reports to shareholders, online at
http://www.ftportfolios.com/Retail/MF/MFfundnews.aspx?Ticker=FPEAX. You can also
get this information at no cost by calling (800) 621-1675 or by sending an
e-mail request to info@ftportfolios.com. If you purchase shares through a
financial intermediary (such as a broker/dealer or bank), you can obtain the
Fund's prospectus and other information from that financial intermediary. The
Fund's prospectus and statement of additional information, both dated March 3,
2014, are all incorporated by reference into this Summary Prospectus.
INVESTMENT OBJECTIVE
The First Trust Preferred Securities and Income Fund (the "Fund") seeks to
provide current income and total return.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund. You may qualify for sales charge discounts if you and your
family invest, or agree to invest in the future, at least $50,000 in the Fund or
in other First Trust mutual funds. More information about these and other
discounts, as well as eligibility requirements for each share class, is
available from your financial advisor and in "Share Classes" on page 32 of this
prospectus, "Investment in Fund Shares" on page 35 of this prospectus and
"Purchase and Redemption of Fund Shares" on page 59 of the Funds' statement of
additional information ("SAI").
SHAREHOLDER FEES
(fees paid directly from your investment)
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CLASS A CLASS C CLASS F CLASS I CLASS R3
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Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage
of offering price) 4.50% None None None None
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Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase
price or redemption proceeds)(1) None 1.00% None None None
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Maximum Sales Charge (Load)
Imposed on Reinvested Dividends None None None None None
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Exchange Fee None None None None None
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ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
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CLASS A CLASS C CLASS F CLASS I CLASS R3
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Management Fee 0.80% 0.80% 0.80% 0.80% 0.80%
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Distribution and Service (12b-1) Fees 0.25% 1.00% 0.15% --% 0.50%
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Other Expenses 0.39% 0.37% 0.63% 0.43% 3.57%
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Total Annual Fund Operating Expenses 1.44% 2.17% 1.58% 1.23% 4.87%
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Fee Waivers and Expense Reimbursements(2) (0.04%) (0.02%) (0.28%) (--%) (3.22%)
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Total Annual Fund Operating Expenses
After Fee Waivers and Expense Reimbursements 1.40% 2.15% 1.30% 1.15% 1.65%
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1 For Class A shares purchased at net asset value without a sales charge
because the purchase amount exceeded $1 million, where the financial
intermediary did not waive the sales commission, a contingent deferred
sales charge of 1% is imposed on any redemption within 12 months of
purchase. The contingent deferred sales charge on Class C shares applies
only to redemptions within 12 months of purchase.
2 The investment advisor and sub-advisor have agreed to waive fees and
reimburse expenses through February 28, 2015 so that Total Annual Fund
Operating Expenses (excluding 12b-1 distribution and service fees,
interest expenses, taxes, fees incurred in acquiring and disposing of
portfolio securities, and extraordinary expenses) do not exceed 1.15% of
the average daily net assets of any class of Fund shares. Total Annual
Fund Operating Expenses (excluding 12b-1 distribution and service fees,
interest expenses, taxes, fees incurred in acquiring and disposing of
portfolio securities, and extraordinary expenses) will not exceed 1.50%
from March 1, 2015 through February 28, 2024. Expense limitations may be
terminated or modified prior to their expiration only with the approval of
the Board of Trustees of the First Trust Series Fund (the "Trust").
EXAMPLE
The following example is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds. The example assumes
that you invest $10,000 in the Fund for the time periods indicated. The example
also assumes that your investment has a 5% return each year and that the Fund's
annual operating expenses remain at current levels until February 28, 2015 and
then will not exceed 1.50% from March 1, 2015 until February 28, 2024. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
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REDEMPTION NO REDEMPTION
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SHARE CLASS A C F I R3 A C F I R3
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1 Year $ 586 $ 318 $ 132 $ 117 $ 168 $ 586 $ 218 $ 132 $ 117 $ 168
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3 Years 880 676 462 380 582 880 676 462 380 582
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5 Years 1,197 1,162 825 665 1,034 1,197 1,162 825 665 1,034
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10 Years 2,092 2,501 1,846 1,479 2,289 2,092 2,501 1,846 1,479 2,289
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PORTFOLIO TURNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the example, affect the Fund's performance.
During the most recent fiscal year, the Fund's portfolio turnover rate was 60%
of the average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Fund seeks to achieve its investment objective by investing, under normal
market conditions, at least 80% of its net assets (including investment
borrowings) in preferred securities and other securities with similar economic
characteristics. Securities that have economic characteristics that are similar
to preferred securities include certain debt instruments. Such debt instruments
are typically issued by corporations, generally in the form of interest bearing
notes, or by an affiliated business trust of a corporation, generally in the
form of (i) beneficial interests in subordinated debentures or similarly
structured securities or (ii) more senior debt securities that pay income and
trade in a manner similar to preferred securities. The Fund may also invest in
more traditional corporate debt securities and U.S. government securities.
Preferred securities generally pay fixed or adjustable-rate distributions to
investors and have preference over common stock in the payment of distributions
and the liquidation of a company's assets, but are generally junior to all forms
of the company's debt, including both senior and subordinated debt; therefore,
the risks and potential rewards of investing in the Fund may at times be similar
to the risks and potential rewards of investing in both equity funds and bond
funds. Because the issuers of preferred securities are often financial
companies, the Fund intends to concentrate (invest at least 25% of its net
assets) in the industry or group of industries that comprise the financial
sector, which may include banks, thrifts, brokerage firms, broker-dealers,
investment banks, finance companies, real estate investment trusts ("REITs") and
companies involved in the insurance industry.
Under normal market conditions, the Fund invests substantially all of its net
assets in investment grade securities. Investment grade quality securities are
those that, at the time of purchase, are rated at least "BBB-" or higher by
Standard & Poor's Ratings Group, a division of the McGraw Hill Companies, Inc.
("S&P"), or "Baa3" or higher by Moody's Investors Service, Inc. ("Moody's") or
comparably rated by another nationally recognized statistical rating
organization ("NRSRO") or, if unrated, determined by the investment sub-advisor
to be of comparable credit quality. In the event that a security is rated by
multiple NRSROs and receives different ratings, the Fund will treat the security
as being rated in the highest rating category received from an NRSRO.
Under normal market conditions, the Fund may invest up to 15% of its net assets
in cash and/or cash equivalents. The Fund may invest in securities issued by
companies domiciled in the United States, U.S. dollar-denominated depositary
receipts, U.S. dollar-denominated foreign securities and non-U.S.
dollar-denominated securities. The Fund may invest up to 15% of its net assets
in Rule 144A Securities. Rule 144A Securities are generally subject to resale
restrictions and may be illiquid.
The Fund is classified as "non-diversified" under the Investment Company Act of
1940, as amended (the "1940 Act") and as a result may invest a relatively high
percentage of its assets in a limited number of issuers. The Fund is only
limited as to the percentage of its assets which may be invested in the
securities of any one issuer by diversification requirements imposed by the
Internal Revenue Code of 1986, as amended (the "Code").
PRINCIPAL RISKS
You could lose money by investing in the Fund. There can be no assurance that
the Fund will achieve its investment objective. An investment in the Fund is not
a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency.
CONCENTRATION RISK. A fund concentrated in a single industry or sector is likely
to present more risks than a fund that is broadly diversified over several
industries or sectors. Compared to the broad market, an individual industry or
sector may be more strongly affected by changes in the economic climate, broad
market shifts, moves in a particular dominant stock, or regulatory changes.
CREDIT RISK. Credit risk is the risk that an issuer of a security may be unable
or unwilling to make dividend, interest and principal payments when due and the
related risk that the value of a security may decline because of concerns about
the issuer's ability or willingness to make such payments. In addition, parties
to other financial contracts with the Fund could default on their obligations.
DEPOSITARY RECEIPTS RISK. Depositary receipts may be less liquid than the
underlying shares in their primary trading market. Any distributions paid to the
holders of depositary receipts are usually subject to a fee charged by the
depositary. Holders of depositary receipts may have limited voting rights, and
investment restrictions in certain countries may adversely impact the value of
depositary receipts because such restrictions may limit the ability to convert
shares into depositary receipts and vice versa. Such restrictions may cause
shares of the underlying issuer to trade at a discount or premium to the market
price of the depositary receipts.
FINANCIAL COMPANIES RISK. Financial companies are especially subject to the
adverse effects of economic recession, currency exchange rates, government
regulation, decreases in the availability of capital, volatile interest rates,
portfolio concentrations in geographic markets and in commercial and residential
real estate loans, and competition from new entrants in their fields of
business.
ILLIQUID SECURITIES RISK. Some securities held by the Fund may be illiquid.
Illiquid securities involve the risk that the securities will not be able to be
sold at the time desired by the Fund or at prices approximately the value at
which the Fund is carrying the securities on its books.
INCOME RISK. If interest rates fall, the income from the Fund's portfolio will
decline as the Fund invests the proceeds from new share sales, or from matured
or called debt securities, at interest rates that are below the portfolio's
current earnings rate.
INTEREST RATE RISK. Interest rate risk is the risk that the value of the
fixed-income securities held by the Fund will decline because of rising market
interest rates. Interest rate risk is generally lower for shorter term
investments and higher for longer term investments.
MARKET RISK. Market risk is the risk that a particular security owned by the
Fund or shares of the Fund in general may fall in value. Shares are subject to
market fluctuations caused by such factors as economic, political, regulatory or
market developments, changes in interest rates and perceived trends in
securities prices. Overall Fund share values could decline generally or could
underperform other investments.
NON-DIVERSIFICATION RISK. The Fund is classified as "non-diversified" under the
1940 Act. As a result, the Fund is only limited as to the percentage of its
assets which may be invested in the securities of any one issuer by the
diversification requirements imposed by the Code. The Fund may invest a
relatively high percentage of its assets in a limited number of issuers. As a
result, the Fund may be more susceptible to a single adverse economic or
regulatory occurrence affecting one or more of these issuers, experience
increased volatility and be highly concentrated in certain issuers.
NON-U.S. SECURITIES RISK. Non-U.S. securities are subject to higher volatility
than securities of domestic issuers due to possible adverse political, social or
economic developments; restrictions on foreign investment or exchange of
securities; lack of liquidity; currency exchange rates; excessive taxation;
government seizure of assets; different legal or accounting standards; and less
government supervision and regulation of exchanges in foreign countries.
PREFERRED SECURITIES RISK. Preferred securities combine some of the
characteristics of both common stocks and bonds. Preferred securities are
typically subordinated to bonds and other debt instruments in a company's
capital structure, in terms of priority to corporate income, and therefore will
be subject to greater credit risk than those debt instruments. Preferred
securities are also subject to credit risk, interest rate risk and income risk.
REIT RISK. The Fund invests in REITs, and as a result, the Fund is subject to
the risks associated with investing in real estate, which may include, but are
not limited to, fluctuations in the value of underlying properties; defaults by
borrowers or tenants; market saturation; changes in general and local operating
expenses; and other economic, political or regulatory occurrences affecting
companies in the real estate industry. In addition to risks related to
investments in real estate generally, investing in REITs involves certain other
risks related to their structure and focus, which include, but are not limited
to, dependency upon management skills, limited diversification, the risks of
locating and managing financing for projects, heavy cash flow dependency,
possible default by borrowers, the costs and potential losses of
self-liquidation of one or more holdings, the risk of a possible lack of
mortgage funds and associated interest rate risks, overbuilding, property
vacancies, increases in property taxes and operating expenses, changes in zoning
laws, losses due to environmental damages, changes in neighborhood values and
appeal to purchasers, the possibility of failing to maintain exemptions from
registration under the 1940 Act and, in many cases, relatively small market
capitalization, which may result in less market liquidity and greater price
volatility.
REITs are also subject to the risk that the real estate market may experience an
economic downturn generally, which may have a material effect on the real estate
in which the REITs invest and their underlying portfolio securities.
ANNUAL TOTAL RETURN
The bar chart and table below illustrate the calendar year return of the Fund's
Class A shares for the past two years as well as the average annual Fund returns
for the one year and since inception periods ended December 31, 2013. The bar
chart and table provide an indication of the risks of investing in the Fund by
showing changes in the Fund's performance from year-to-year and by showing how
the Fund's Class A shares' average annual total returns compare to those of a
broad-based securities market index. See "Total Return Information" for
additional performance information regarding the Fund. The Fund's performance
information is accessible on the Fund's website at www.ftportfolios.com.
Returns before taxes do not reflect the effects of any income or capital gains
taxes. All after-tax returns are calculated using the historical highest
individual federal marginal income tax rates and do not reflect the impact of
any state or local tax. Returns after taxes on distributions reflect the taxed
return on the payment of dividends and capital gains. Returns after taxes on
distributions and sale of shares assume you sold your shares at period end, and,
therefore, are also adjusted for any capital gains or losses incurred. After-tax
returns are shown for only Class A shares, and after-tax returns for other
Classes will vary. Returns for the market index do not include expenses, which
are deducted from Fund returns, or taxes.
Your own actual after-tax returns will depend on your specific tax situation and
may differ from what is shown here. After-tax returns are not relevant to
investors who hold Fund shares in tax-deferred accounts such as individual
retirement accounts (IRAs) or employee-sponsored retirement plans.
Imposition of the Fund's sales load is not reflected in the bar chart below. If
the sales load was reflected, returns would be less than those shown.
FIRST TRUST PREFERRED SECURITIES AND INCOME FUND--TOTAL RETURN ON CLASS A SHARES
[GRAPHIC OMITTED]
[DATA POINTS REPRESENTED IN BAR CHART]
Calendar Year Total Return as of 12/31
Year %
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2012 16.64%
2013 -4.49%
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During the two-year period ended December 31, 2013, the Fund's highest and
lowest calendar quarter returns were 6.75% and -5.29%, respectively, for the
quarters ended March 31, 2012 and September 30, 2013. The Fund's past
performance (before and after taxes) is not necessarily an indication of how the
Fund will perform in the future.
AVERAGE ANNUAL TOTAL RETURNS FOR THE FUND FOR THE PERIODS ENDED DECEMBER 31, 2013
1 Year Since Inception
Inception Date
Class A - Return Before Taxes -8.78% 3.75% 2/25/2011
Class C - Return Before Taxes -6.07% 4.72% 2/25/2011
Class F - Return Before Taxes -4.40% 5.68% 3/2/2011
Class I - Return Before Taxes -4.19% 6.00% 1/11/2011
Class R3 - Return Before Taxes -4.69% 4.99% 3/2/2011
Class A - Return After Taxes on Distributions -10.85% 1.55% 2/25/2011
Class A - Return After Taxes on Distributions and Sale of Shares -4.93% 2.04% 2/25/2011
Merrill Lynch Fixed Rate Preferred Securities Index -3.65% 4.05% 1/11/2011*
* Since Inception Index returns are based on inception date of the Class I shares.
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MANAGEMENT
INVESTMENT ADVISOR
First Trust Advisors L.P. ("First Trust" or the "Advisor")
INVESTMENT SUB-ADVISOR
Stonebridge Advisors LLC ("Stonebridge" or the "Sub-Advisor")
PORTFOLIO MANAGERS
The following persons are members of Stonebridge's investment committee and
serve as the portfolio managers of the Fund:
o Scott T. Fleming, President and Chief Investment Officer of
Stonebridge;
o Robert Wolf, Vice President, Senior Credit Analyst and Portfolio
Manager for Stonebridge; and
o Danielle Salters, Credit Analyst at Stonebridge.
Each portfolio manager has managed the Fund since 2011 except for Ms.
Salters, who joined Stonebridge in February 2012, when she began managing
the Fund.
PURCHASE AND SALE OF FUND SHARES
You may purchase, redeem or exchange shares of the Fund through a financial
advisor on any day the New York Stock Exchange ("NYSE") is open for business.
The minimum initial purchase or exchange into the Fund is $2,500 ($750 for a
Traditional/Roth IRA account; $500 for an Education IRA account; and $250 for
accounts opened through fee-based programs). The minimum subsequent investment
is $50. Class I shares are subject to higher minimums for certain investors and
Class R3 shares are not subject to any minimums. There are no minimums for
purchases or exchanges into the Fund through employer-sponsored retirement
plans.
TAX INFORMATION
The Fund's distributions will generally be taxed as ordinary income or capital
gains, unless you are investing through a tax-deferred arrangement, such as a
401(k) plan or an individual retirement account, in which case, your
distribution will be taxed upon withdrawal from the tax-deferred account.
Additionally, a sale of Fund shares is generally a taxable event.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), First Trust and related companies may pay the intermediary for
the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary's website for more information.
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