First Trust Real Assets Fund Proposes Sub-Adviser Change to Sardis Group
| Field | Detail |
|---|---|
| Company | First Trust Real Assets Fund |
| Form Type | DEF 14A |
| Filed Date | Jul 11, 2025 |
| Risk Level | low |
| Sentiment | neutral |
Sentiment: neutral
Topics: Sub-Adviser Change, Investment Management, Shareholder Meeting, Real Assets Fund, Proxy Statement, Fund Governance, Structured Credit
TL;DR
**First Trust Real Assets Fund is swapping sub-advisers to Sardis Group, but it's mostly a name change for the same portfolio managers, so expect business as usual with no fee hike.**
AI Summary
First Trust Real Assets Fund (FTRDX, FTREX) is holding a Special Meeting of Shareholders on July 24, 2025, at 10:00 a.m. Eastern Time to approve a new investment sub-advisory agreement. The proposed agreement is between the Fund, First Trust Capital Management L.P. (the "Advisor"), and Sardis Group, LLC (the "Sub-Adviser"), replacing the current sub-advisory agreement with Angel Oak Capital Advisors, LLC. The Advisor recommends Sardis due to its principals' extensive experience in US structured credit and related markets, having previously managed the Fund's portfolio while associated with Angel Oak. There will be no increase in the Fund's aggregate fees as a result of Sardis's appointment. Shareholders as of the June 16, 2025 record date are eligible to vote, and the Board of Trustees recommends a FOR vote on the proposal.
Why It Matters
This sub-adviser change for First Trust Real Assets Fund (FTRDX, FTREX) is significant for investors as it signals a strategic shift in portfolio management, even if the key personnel remain the same. While the filing states no fee increase, investors should scrutinize the long-term performance implications of this transition and the stability of the new entity, Sardis Group, LLC, in a competitive asset management landscape. For employees, this could indicate a restructuring of responsibilities, particularly for those previously aligned with Angel Oak. Customers will experience continuity in investment strategy but under a new corporate umbrella, potentially impacting brand perception and trust in the highly competitive real assets fund market.
Risk Assessment
Risk Level: low — The risk level is low because the filing explicitly states there will be no increase in the Fund's aggregate fees. Furthermore, the principals of Sardis Group, LLC are the same individuals who previously managed the Fund's portfolio when associated with Angel Oak Capital Advisors, LLC, ensuring continuity in investment strategy and management experience.
Analyst Insight
Investors should vote FOR the proposal, as it maintains the existing management expertise and investment strategy without increasing fees. Monitor the Fund's performance post-transition to ensure the expected continuity and stability are realized under Sardis Group, LLC.
Key Numbers
- July 24, 2025 — Special Meeting Date (Shareholders will vote on the new sub-advisory agreement)
- June 16, 2025 — Record Date (Determines shareholders eligible to vote at the Special Meeting)
- 10:00 a.m. ET — Meeting Time (When the Special Meeting will commence)
Key Players & Entities
- First Trust Real Assets Fund (company) — Registrant and Fund holding a Special Meeting of Shareholders
- First Trust Capital Management L.P. (company) — Investment Adviser to the Fund
- Sardis Group, LLC (company) — Proposed new investment sub-adviser
- Angel Oak Capital Advisors, LLC (company) — Current sub-adviser being replaced
- Faegre Drinker Biddle & Reath LLP (company) — Location of the Special Meeting of Shareholders
- Board of Trustees (person) — Recommends voting FOR the proposal
- July 24, 2025 (date) — Date of the Special Meeting of Shareholders
- June 16, 2025 (date) — Record date for shareholders entitled to vote
- 10:00 a.m. Eastern Time (time) — Time of the Special Meeting of Shareholders
FAQ
What is the purpose of the First Trust Real Assets Fund Special Meeting on July 24, 2025?
The Special Meeting of First Trust Real Assets Fund on July 24, 2025, is being held to ask shareholders to approve a new investment sub-advisory agreement with Sardis Group, LLC, which will replace the current agreement with Angel Oak Capital Advisors, LLC.
Who is the new proposed sub-adviser for First Trust Real Assets Fund?
The new proposed sub-adviser for First Trust Real Assets Fund is Sardis Group, LLC. They are recommended by First Trust Capital Management L.P., the Fund's investment adviser.
Will the fees for First Trust Real Assets Fund increase with the new sub-adviser?
No, the filing explicitly states that there will be no increase in the Fund's aggregate fees as a result of the appointment of Sardis Group, LLC as the sub-adviser of First Trust Real Assets Fund.
Why is First Trust Capital Management L.P. recommending Sardis Group, LLC?
First Trust Capital Management L.P. recommends Sardis Group, LLC because its principals have extensive experience managing investment vehicles focused on US structured credit and related markets, having previously served as portfolio managers for the Fund when associated with Angel Oak Capital Advisors, LLC.
What is the record date for voting at the First Trust Real Assets Fund Special Meeting?
The record date for determining shareholders entitled to receive notice of and to vote at the First Trust Real Assets Fund Special Meeting is the close of business on June 16, 2025.
What is the Board of Trustees' recommendation regarding the sub-advisory proposal for First Trust Real Assets Fund?
The Board of Trustees recommends that shareholders vote FOR the approval of the proposal to appoint Sardis Group, LLC as the new sub-adviser for First Trust Real Assets Fund.
Where will the First Trust Real Assets Fund Special Meeting be held?
The Special Meeting for First Trust Real Assets Fund will be held at the offices of Faegre Drinker Biddle & Reath LLP, One Logan Square, Suite 2000, Philadelphia, Pennsylvania 19103-6996.
What role will Sardis Group, LLC principals play for First Trust Real Assets Fund?
With respect to the delegated portion of First Trust Real Assets Fund's portfolio, Sardis Group, LLC principals will be responsible for developing and implementing the investment program, managing the portfolio, making investment decisions, and providing administrative services, similar to their previous roles with Angel Oak.
What is the current sub-adviser being replaced for First Trust Real Assets Fund?
The current sub-adviser being replaced for First Trust Real Assets Fund is Angel Oak Capital Advisors, LLC.
Are there any changes to the investment strategy of First Trust Real Assets Fund with the new sub-adviser?
The filing implies continuity in investment strategy, as the principals of Sardis Group, LLC are the same individuals who previously managed the Fund's portfolio when associated with Angel Oak Capital Advisors, LLC, focusing on US structured credit and related markets.
Industry Context
The mutual fund industry, particularly those focused on specialized asset classes like real assets and structured credit, operates in a competitive landscape. Fund managers must demonstrate expertise and consistent performance to attract and retain assets. Changes in sub-advisers are often driven by the need to leverage specific market knowledge or improve portfolio management capabilities.
Regulatory Implications
The change in sub-adviser requires shareholder approval, as mandated by regulatory bodies like the SEC. This process ensures transparency and allows investors to have a say in significant changes to the fund's management. The filing itself, a DEF 14A, adheres to strict SEC disclosure requirements.
What Investors Should Do
- Review the Proxy Statement carefully.
- Vote on the proposal.
- Note the absence of fee increases.
Key Dates
- 2025-07-24: Special Meeting of Shareholders — Shareholders will vote on the proposed new investment sub-advisory agreement with Sardis Group, LLC.
- 2025-06-16: Record Date — Determines which shareholders are eligible to vote at the Special Meeting.
Glossary
- DEF 14A
- A filing required by the U.S. Securities and Exchange Commission (SEC) for definitive proxy statements. It provides detailed information to shareholders regarding matters to be voted on at a company's annual or special meeting. (This document is the proxy statement for the First Trust Real Assets Fund's special meeting, outlining the proposal for a new sub-advisory agreement.)
- Sub-advisory agreement
- A contract between an investment adviser and a sub-adviser, where the sub-adviser agrees to manage a portion of the investment company's assets on behalf of the investment adviser. (The core of this filing is the proposed replacement of the current sub-advisory agreement with Angel Oak Capital Advisors, LLC, with a new agreement with Sardis Group, LLC.)
- Structured credit
- A type of financial instrument that is created by pooling various debt instruments (like mortgages or auto loans) and then slicing them into different risk tranches. (Sardis Group, LLC is being proposed due to its principals' extensive experience in US structured credit and related markets, which is relevant to the Fund's investment strategy.)
- Record Date
- A specific date set by a company to determine which shareholders are eligible to receive notice of and vote at a shareholder meeting. (June 16, 2025, is the record date, meaning only shareholders who owned shares on this date are entitled to vote at the July 24, 2025, special meeting.)
Year-Over-Year Comparison
This filing is a specific proxy statement for a special meeting and does not contain comparative financial highlights from a previous annual report. The primary focus is on the proposed change of sub-adviser and the associated shareholder vote, rather than a year-over-year financial performance review.
Filing Details
This Form DEF 14A (Form DEF 14A) was filed with the SEC on July 11, 2025 by Board of Trustees regarding First Trust Real Assets Fund.