RULE 12d1-4 UNIT INVESTMENT TRUST OF CLOSED-END FUNDS INVESTMENT AGREEMENT
RULE 12d1-4
UNIT INVESTMENT TRUST OF
CLOSED-END FUNDS INVESTMENT AGREEMENT
This Agreement, dated as of August 31, 2023, between FT Series (the “Trust”) on behalf of each of its existing and future series that invests in an Acquired Fund in reliance on the Rule as such terms are defined below, severally and not jointly, (each, an “Acquiring Fund”), and each closed-end investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) advised by Xxxxxx Fund Advisors, LLC (the “Adviser”), that is listed on Appendix A hereto (as may be amended from time to time), severally and not jointly (each an “Acquired Fund”).
WHEREAS, the Trust is registered with the U.S. Securities and Exchange Commission (“SEC”) as a unit investment trust under the 1940 Act and each Acquiring Fund is a series of the Trust;
WHEREAS, the Trust intends that this Agreement be applicable to its existing series as of the date hereof and all series subsequently established by the Trust;
WHEREAS, each Acquired Fund is registered with the SEC as a closed-end management investment company and advised by the Adviser and the parties hereto intend that this Agreement to be applicable to all registered closed-end funds advised by the Adviser that are listed on Appendix A, as may be amended from time to time;
WHEREAS, Section 12(d)(1)(A) of the 1940 Act limits the extent to which a registered investment company may invest in shares of other registered investment companies, including, in pertinent part, Section 12(d)(1)(A)(i) which prohibits a registered investment company (and any company or companies controlled by it) to purchase or otherwise acquire any security issued by any other investment company if the acquiring company (and any company or companies controlled by it) immediately after such purchase or acquisition own in the aggregate more than 3% of the total outstanding voting stock of the acquired company (the “3% Limit”). Section 12(d)(1)(C) of the 1940 Act further limits the extent to which an investment company may invest in the shares of a registered closed-end investment company;
WHEREAS, Rule 12d1-4 under the 1940 Act, as interpreted or modified by the SEC of its staff from time to time (the “Rule”), permits registered investment companies, such as the Acquiring Funds, to invest in shares of other registered investment companies, such as the Acquired Funds, in excess of the limits of Section 12(d)(1) of the 1940 Act subject to compliance with the conditions of the Rule; and
WHEREAS, an Acquiring Fund may, from time to time, invest in shares of one or more Acquired Funds in excess of certain limitations of Section 12(d)(1) in reliance on the Rule;
NOW THEREFORE, in consideration of the premises and the mutual covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1. | Terms of Investment. |
(a) In accordance with the Rule, the Acquiring Funds and the Acquired Funds agree that the Acquiring Funds may invest in the Acquired Funds in reliance on the Rule and as provided herein.
(b) In order to help reasonably address the risk of undue influence on an Acquired Fund by an Acquiring Fund, each Acquired Fund and each Acquiring Fund agree as follows:
(i) an Acquiring Fund and its advisory group as such term is defined in the Rule, will not control (individually or in the aggregate) an Acquired Fund;
(ii) no Acquiring Fund shall purchase or otherwise acquire securities issued by an Acquired Fund in excess of the limits in Section 12(d)(1)(A)(i) of the 1940 Act (i.e., the 3% Limit);
(iii) an Acquiring Fund shall not make any purchase or acquisition of shares in an Acquired Fund that results in the Acquiring Fund and its Advisory Group (as defined in the Rule), individually or in the aggregate, holding more than 10% of an Acquired Fund’s total outstanding voting securities; if such 10% ownership limit is exceeded in any Acquired Fund, the Acquiring Fund will notify the applicable Acquired Fund immediately and will not purchase any additional securities of the Acquired Fund; and
(iv) (A) except as provided in (B) below, or otherwise required by the Acquiring Fund's organizational documents or applicable law or rules thereunder, the Acquiring Fund will vote its securities held of an Acquired Fund in the same proportion as the vote of all other holders of such securities (“Echo Voting”). An Acquiring Fund that is structured as a fixed income trust as defined in Treas. Reg. Section 1.671-5(b)(22) (commonly known as a grantor trust unit investment trust) is required by its organizational documents to Echo Vote on matters that will result in the Acquiring Fund receiving new or exchange securities.
(B) an eligible Acquiring Fund will consider voting on a non-routine matter in its own discretion (rather than Echo Voting) if requested by the Acquired Fund. If an Acquired Fund requests that an Acquiring Fund consider voting in its own discretion on a non-routine matter that is a pending shareholder vote, the Acquired Fund must provide notice of the non-routine shareholder vote to the parties listed in Section 5 of this Agreement not later than 30 days prior to the vote. Upon a timely request, the Acquiring Fund will consider the non-routine matter and vote in accordance with the best interest of its unitholders or shareholders. Notwithstanding the foregoing, the provision of a proxy statement containing a non-routine matter and a specific written request to consider voting in its own discretion to the Acquiring Fund pursuant to Section 5 of this Agreement shall constitute notice under this section.
(c) In order to assist the Acquiring Fund’s principal underwriter or depositor with evaluating the complexity of the structure and the fees and expenses associated with an investment in an Acquired Fund, each Acquired Fund shall provide the respective Acquiring Fund with information on the fees and expenses of the Acquired Fund reasonably requested by such Acquiring Fund with reference to the Rule. In accordance with the foregoing and in recognition of each Acquired Fund’s obligations regarding disclosure of material nonpublic information under applicable laws, rules and regulations, including without limitation Regulation FD, each Acquiring Fund and Acquired Fund agree that the information on fees and expenses of each Acquired Fund shall be provided through delivery or access to publicly available documents.
(d) Securities of the Acquired Fund acquired by the Acquiring Fund, shall be acquired and held in the ordinary course of its business and will not be acquired or held for the purpose of, or with the effect of, changing or influencing the management or policies of the Acquired Fund.
2. | Representations of the Acquiring Funds. |
(a) In connection with any investment by an Acquiring Fund in an Acquired Fund in excess of the limitations in Section 12(d)(1)(A), the Acquiring Fund agrees to: (i) comply with all conditions of the Rule, as interpreted or modified by the SEC or its staff from time to time, applicable to Acquiring Funds; (ii) comply with its obligations under this Agreement; and (iii) promptly notify the Acquired Fund if such Acquiring Fund fails to comply with the Rule with respect to its investment in such Acquired Fund, as interpreted or modified by the SEC or its staff from time to time, or this Agreement.
(b) Each Acquiring Fund acknowledges that:
(i) it may not rely on this Agreement to invest in Acquired Funds designated as “Ineligible Funds” on the list of Ineligible Funds attached as Appendix B hereto (the “Ineligible Funds List”);
(ii) the Ineligible Funds List may be updated from time to time, and such updated Ineligible Funds List shall be effective as of the close of business on the date of its distribution to the Acquiring Fund via electronic mail at the address provided by the Acquiring Fund pursuant to Section 5 of this Agreement, subject to the notice provision in Section 2(b)(iii) of this Agreement as applicable, and it is the Acquiring Fund’s obligation to review the most recently distributed Ineligible Funds List prior to making investments under this Agreement.
(iii) If an Acquired Fund will be moved to the Ineligible Funds List, the Acquired Fund will provide 90 days advance notice of this change to the Acquiring Fund pursuant to Section 5 of this Agreement, unless otherwise agreed upon by each party. Following the 90-day notice period, the Acquired Fund will distribute an updated Ineligible Funds List pursuant to Section 5 of this Agreement and an Acquiring Fund may not rely on this Agreement to invest in such Ineligible Fund as of the close of business on the date of the distribution of the Ineligible Funds List.
(c) Each Acquiring Fund agrees that, upon any termination of its advisory agreement (including as a result of an “assignment” as defined in Section 2(a)(4) of the 1940 Act), it shall promptly notify each Acquired Fund and shall refrain from acquiring any additional securities of any Acquired Fund in excess of the limitations set forth in Sections 12(d(1)(A) or 12(d)(1)(C) of the 1940 Act.
(d) Upon request, the Acquiring Fund shall provide the Acquired Funds with a list of affiliates.
3. | Representations of the Acquired Funds. |
(a) In connection with any investment by an Acquiring Fund in an Acquired Fund in excess of the limitations in Section 12(d)(1)(A), the Acquired Fund agrees to: (i) comply with all conditions of the Rule applicable to Acquired Funds; (ii) comply with its obligations under this Agreement; and (iii) promptly notify the Acquiring Fund if such Acquired Fund fails to comply with the Rule with respect to an investment by the Acquiring Fund or this Agreement.
(b) Each Acquired Fund acknowledges that it will provide 90 days advance notice to the Acquiring Fund pursuant to Section 5 of this Agreement when an Acquired Fund may be added to the Ineligible Funds List, unless otherwise agreed upon by each party. Following the 90 day notice period, the Acquired Fund will distribute an updated Ineligible Funds List pursuant to Section 5 of this Agreement
4. | Indemnification |
(a) Each Acquiring Fund agrees to hold harmless and indemnify each corresponding Acquired Fund, including any of its principals, directors or trustees, officers, employees and agents, against and from any and all losses, expenses or liabilities incurred by, or claims or actions (“Claims”) asserted against, the Acquired Fund, including any of its principals, directors or trustees, officers, employees and agents, to the extent such Claims result from a violation or alleged violation by such Acquiring Fund of any provision of this Agreement, such indemnification to include any reasonable counsel fees and expenses incurred in connection with investigating and/or defending such Claims; provided that no Acquiring Fund shall be liable for indemnifying any Acquired Fund for any Claims resulting from violations that occur directly as a result of incomplete or inaccurate information provided by the Acquired Fund to such Acquiring Fund pursuant to terms and conditions of this Agreement.
(b) Each Acquired Fund agrees to hold harmless and indemnify each corresponding Acquiring Fund, including any of its principals, directors or trustees, officers, employees and agents, against and from any and all losses, expenses or liabilities incurred by, or Claims asserted against, the Acquiring Fund, including any of its principals, directors or trustees, officers, employees and agents, to the extent such Claims result from a violation or alleged violation by such Acquired Fund of any provision of this Agreement, such indemnification to include any reasonable counsel fees and expenses incurred in connection with investigating and/or defending such Claims; provided that no Acquired Fund shall be liable for indemnifying any Acquiring Fund for any Claims resulting from violations that occur directly as a result of incomplete or inaccurate information provided by the Acquiring Fund to such Acquired Fund pursuant to terms and conditions of this Agreement.
(c) Any liability pursuant to the forgoing provisions shall be several and not joint. In any action involving the parties under this Agreement, the parties agree to look solely to the individual Acquiring Fund or Acquired Funds that are involved in the matter in controversy and not to other Funds or series.
5. | Notices |
All notices, including all information that either party is required to provide under the terms of this Agreement and the Rule, shall be in writing and shall be delivered by registered or overnight mail or electronic mail to the address for each party specified below or to such other person or address as such party may designate for receipt of such notice.
If to the Acquiring Fund: | If to the Acquired Fund: | |
Xxxxxx Xxxxx First Trust Portfolios L.P. 000 X. Xxxxxxx Xxxxx, Xxxxx 000 Xxxxxxx, XX 00000 Email: xxxxxxxx@xxxxxxxxxxxx.xxx |
Email: Xxxxxx00x0-0@xxxxxx.xxx | |
With a copy to: X. Xxxxx Xxxxxxx, Esq. Attn: Legal Department First Trust Portfolios L.P. 000 X. Xxxxxxx Xxxxx, Xxxxx 000 Xxxxxxx, XX 00000 Email: xxxxxxxx@xxxxxxxxxxxx.xxx |
With a copy to: Xxxx X. XxXxxx Email: xxxx.xxxxxx@xxxxxx.xxx |
6. | Term and Termination. |
(a) This Agreement shall be effective for the duration of the Acquired Funds’ and the Acquiring Funds’ reliance on the Rule, as interpreted or modified by the SEC or its staff from time to time. While the terms of the Agreement shall only be applicable to investments in Acquired Funds made in reliance on the Rule, the Agreement shall continue in effect until terminated pursuant to this Section 6.
(b) This Agreement shall continue until terminated in writing by either party upon 60 days’ notice to the other party. Upon termination of this Agreement or at any time an Acquired Fund is designated as an Ineligible Fund, the respective Acquiring Fund may not purchase additional shares of the Acquired Fund beyond the Section 12(d)(1)(A) limits in reliance on the Rule. For purposes of clarity, upon termination of the Agreement with respect to an Acquired Fund or at any time an Acquired Fund is designated as an Ineligible Fund, the Acquiring Fund will not be required to reduce its holdings of the respective Acquired Fund. Termination of this Agreement with respect to a particular Acquiring Fund and/or Acquired Fund shall not terminate the Agreement as to other Acquiring Funds and Acquired Funds that are parties hereto.
(c) This Agreement shall automatically terminate with respect to a particular Acquiring Fund upon the termination of such Acquiring Fund. Such termination of the Agreement on behalf of the respective Acquiring Fund shall not terminate this Agreement with respect to other Acquiring Funds and Acquired Funds that are parties hereto.
7. | Survival Provision. |
If this Agreement is terminated pursuant to Section 6(b) hereof with respect to an Acquiring Fund and corresponding Acquired Fund, the provisions set forth in Section 1(b)(iv) of the respective Acquiring Fund shall survive and be a continuing obligation of such Acquiring Fund so long as the Acquiring Fund holds the voting securities of the applicable Acquired Fund.
8. | Assignment; Amendment; Miscellaneous |
(a) This Agreement may not be assigned by either party without the prior written consent of the other.
(b) This Agreement may be amended only by a writing that is signed by each affected party; provided, however, that (a) Appendix A to this Agreement may be amended by the Adviser to add additional Acquired Funds by providing notice to the Acquiring Fund in accordance with Section 5, and (b) Appendix A to this Agreement may be amended by the Adviser to add or remove Acquired Funds to or from the Ineligible Funds List by providing notice to the Acquiring Fund in accordance with Section 5 and subject to notice in Section 3(b) as applicable.
(c) In any action involving the Acquiring Funds under this Agreement, each Acquired Fund agrees to look solely to the individual Acquiring Fund that is involved in the matter in controversy and not to any other Acquiring Fund of the Trust.
(d) In any action involving the Acquired Funds under this Agreement, each Acquiring Fund agrees to look solely to the individual Acquired Fund that is involved in the matter in controversy and not to any other Acquired Fund hereunder.
(e) The Acquiring Fund and Acquired Funds may file a copy of this Agreement with the SEC or any other regulatory body if required by applicable law.
(f) For any Acquired Fund that is a Massachusetts business trust, a copy of the Declaration of Trust of such Acquired Fund is on file with the Secretary of The Commonwealth of Massachusetts, and notice is hereby given that no trustee, officer, employee, agent, employee or shareholder of the respective Acquired Fund shall have any personal liability under this Agreement and that this Agreement is binding only upon the assets and property of the applicable Acquired Fund.
(g) This Agreement shall be construed on behalf of an Acquired Fund in accordance with the laws of the State of organization of such Acquired Fund.
(h) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. An electronic copy of a signature received in Portable Document Format (PDF) or a copy of a signature received via a fax machine shall be deemed to be of the same force and effect as an original signature on an original executed document.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Closed-end Funds Listed on Appendix A
Signature: | /s/ Xxxx X. XxXxxx | |
Name: Xxxx X. XxXxxx | ||
Title: Managing Director, Associate General Counsel |
FT Series on behalf of each of its existing and future series
By: First Trust Portfolios L.P. on behalf of Acquiring Funds
Signature: | /s/ Xxxxx X. Xxxxx | |
Name: Xxxxx X. Xxxxx | ||
Title: Chief Financial Officer |
Appendix A Acquired Funds
Effective as of August 16, 2023
Ticker | Fund Name |
NVG | Nuveen AMT-Free Municipal Credit Income Fund |
NUW | Nuveen AMT-Free Municipal Value Fund |
NEA | Nuveen AMT-Free Quality Municipal Income Fund |
NAZ | Nuveen Arizona Quality Municipal Income Fund |
NKX | Nuveen California AMT-Free Quality Municipal Income Fund |
NCA | Nuveen California Municipal Value Fund |
NAC | Nuveen California Quality Municipal Income Fund |
NXC | Nuveen California Select Tax-Free Income Portfolio |
JCE | Nuveen Core Equity Alpha Fund |
NPCT | Nuveen Core Plus Impact Fund |
XXXX | Nuveen Corporate Income 2023 Target Term Fund |
DIAX | Nuveen Dow 30℠ Dynamic Overwrite Fund |
NDMO | Nuveen Dynamic Municipal Opportunities Fund |
JFR | Nuveen Floating Rate Income Fund |
JGH | Nuveen Global High Income Fund |
NMT | Nuveen Massachusetts Quality Municipal Income Fund |
NMS | Nuveen Minnesota Quality Municipal Income Fund |
NOM | Nuveen Missouri Quality Municipal Income Fund |
JLS | Nuveen Mortgage and Income Fund |
NMAI | Nuveen Multi-Asset Income Fund |
JMM | Nuveen Multi-Market Income Fund |
NMCO | Nuveen Municipal Credit Opportunities Fund |
NMI | Nuveen Municipal Income Fund, Inc. |
NUV | Nuveen Municipal Value Fund, Inc. |
QQQX | Nuveen Nasdaq 100 Dynamic Overwrite Fund |
NXJ | Nuveen New Jersey Quality Municipal Income Fund |
NRK | Nuveen New York AMT-Free Quality Municipal Income Fund |
NNY | Nuveen New York Municipal Value Fund |
NAN | Nuveen New York Quality Municipal Income Fund |
NXN | Nuveen New York Select Tax-Free Income Portfolio |
JPC | Nuveen Preferred & Income Opportunities Fund |
JPS | Nuveen Preferred & Income Securities Fund |
JPT | Nuveen Preferred and Income Fund |
JPI | Nuveen Preferred and Income Term Fund |
NAD | Nuveen Quality Municipal Income Fund |
JRI | Nuveen Real Asset Income and Growth Fund |
JRS | Nuveen Real Estate Income Fund |
BXMX | Nuveen S&P 500 Buy-Write Income Fund |
SPXX | Nuveen S&P 500 Dynamic Overwrite Fund |
NIM | Nuveen Select Maturities Municipal Fund |
NXP | Nuveen Select Tax-Free Income Portfolio |
NPFD | Nuveen Variable Rate Preferred & Income Fund |
NPV | Nuveen Virginia Quality Municipal Income Fund |
Appendix B Ineligible Funds List
Effective as of August 16, 2023
Ticker | Fund Name |
NBB | Nuveen Credit Strategies Income Fund |
NZF | Nuveen Municipal Credit Income Fund |
NMZ | Nuveen Municipal High Income Opportunity Fund |
NQP | Nuveen Pennsylvania Quality Municipal Income Fund |
JQC | Nuveen Credit Strategies Income Fund |
HYIF | Nuveen Enhanced High Yield Municipal Bond Fund |