First Trust Real Assets Fund

Last Updated 03/19/2024

Shows hypothetical growth of $1000 since inception

Nav Per Share

4.18%

Current Yield

0.00%

Total Return

06/29/2022

Inception

$23,083,568

Total Managed Assets*

FTRAX

Ticker

$1,000

Minimum Investment

%

Net Expense Ratio

*represents total managed funds for the fund complex

About The Fund

Overview: The First Trust Real Assets Fund (the "Fund"), registered on 12/10/2021, has a salient investment objective: long-term real return through current income and long-term capital appreciation.


The Fund defines "real return" as total return after adjusting for inflation, which is currently sitting at 6.8% YoY as of November 2021, the fastest rate since 1982. Even the 10-year Treasury Inflation Protected Security (TIPS), explicitly designed as a government-backed inflation hedge, is delivering a real yield of roughly -1%.


The Fund has elected to pay monthly distributions at a flat rate of 5% annualized, meaning the capital appreciation component will be crucial in order to meet its objective. It will also have to ensure that it generates enough net investment income to pay out distributions without returning investor capital.


If successful, the Fund will serve as a welcome addition to the world of alternative investment products, as investors scramble to protect themselves from inflation without taking on excessive downside risk. The Fund seeks to achieve its objective by investing in 'real assets,' including real estate, infrastructure, natural resources like timber and agriculture/farmland, and precious metals. 


The adviser, Chicago-based First Trust Capital Management (formerly Vivaldi Asset Management prior to a joint venture between Vivaldi Holdings and First Trust Capital Partners) has offered alternative investment products for more than two decades, spanning private equity, venture capital, hedge funds, real estate, and private credit. The offerings include two existing interval funds, with total AUM across all products topping $962 million.



From the Fund's prospectus:


The Fund: First Trust Real Assets Fund (the “Fund”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as a non-diversified, closed-end management investment company. The Fund was organized as a Delaware trust on December 8, 2021. The Fund intends to operate as an interval fund pursuant to Rule 23c-3 of the Investment Company Act.


Investment Objective: The Fund’s investment objective is to achieve long-term real return through current income and long-term capital appreciation. Real return is total return after adjusting for inflation.


Investment Strategies: Under normal circumstances, the Fund seeks to achieve its investment objective by allocating at least 80% of its net assets, plus the amount of any borrowings for investment purposes, to real assets and real asset companies (together, “Real Asset Related Investments”). Real assets include, without limitation, investments related to real estate, infrastructure, natural resources (such as timberland and agriculture/farmland), and precious metals. Real asset companies include companies that own, operate or derive at least 50% of their profits or revenues from, or commit at least 50% of their assets to, real assets and activities related to real assets. The Fund seeks to obtain exposure to Real Asset Related Investments by investing principally in (i) private funds that primarily invest in real assets and real asset companies (“Private Funds”); (ii) real estate investment trusts (“REITs”), including wholly-owned and controlled subsidiaries of the Fund that are REITs (“Sub-REITs”) that invest in real assets; (iii) publicly traded equity and debt securities associated with real assets (“Real Asset Securities”); (iv) private debt instruments associated with real assets; and (v) a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”), which may invest in commodity futures contracts and exchange-traded commodity linked instruments associated with real assets.



Adviser: First Trust Capital Management L.P.


Distributor: First Trust Portfolios L.P.


Administrator: UMB Fund Services, Inc.


Custodian: UMB Bank, n.a.


Legal Counsel: Faegre Drinker Biddle & Reath LLP


Partner: Joshua B. Deringer, Esq.


Transfer Agent: UMB Fund Services, Inc.

Fund Materials

HISTORICAL DATA

Percentage and dollar changes represent the increase or decrease in the NAV from the preceding trading day.

Regulatory Materials

Prospectus - 12/10/2021 - First Trust Real Assets Fund

First Trust Real Assets Fund - Class A

SEC

Date

2021