First Trust Merger Arbitrage Fund Class I (VARBX)

Overview

The fund is managed by an adviser who specializes in identifying and investing in companies undergoing significant corporate events, primarily mergers and acquisitions. These events often create unique investment opportunities with distinct risk and return profiles compared to traditional stock market investments. The fund's strategy involves a mix of equity securities, including common and preferred stocks, as well as derivatives of these assets. It has the flexibility to invest in companies of any market capitalization, broadening its scope of potential investment targets. This approach is designed to exploit the financial dynamics and potential benefits that corporate events can bring to a stock's value, aiming to generate enhanced returns for investors.

Products and Services

• Equity Securities Investment

This service focuses on investing in publicly-traded common and preferred stocks of companies involved in significant corporate events like mergers or acquisitions. By targeting these unique investment opportunities, the fund seeks to capitalize on the potential for elevated returns that these events can offer compared to the broader equity markets.

• Derivatives Investment

In addition to direct equity investments, the fund utilizes derivatives (financial instruments whose value is derived from the value of an underlying asset) as a part of its strategy. This allows for potentially enhanced returns and the ability to hedge against certain investment risks. Derivatives related to the equity securities of companies undergoing corporate events are a key component of this approach.