Rule 497 (k)
File No. 333-168727
FIRST TRUST FIRST TRUST SERIES FUND
SUMMARY PROSPECTUS
March 3, 2014
FIRST TRUST/CONFLUENCE
SMALL CAP VALUE FUND TICKER SYMBOL
Class A FOVAX
Class C FOVCX
Class I FOVIX
Class R3 FOVRX
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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=FOVAX. 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/Confluence Small Cap Value Fund (the "Fund") seeks to provide
long-term capital appreciation.
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 I CLASS R3
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Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage
of offering price) 5.50% 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
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Maximum Sales Charge (Load)
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Imposed on Reinvested Dividends None None None None
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Exchange Fee 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 I CLASS R3
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Management Fee 1.00% 1.00% 1.00% 1.00%
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Distribution and Service (12b-1) Fees 0.25% 1.00% --% 0.50%
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Other Expenses(2) 10.04% 8.45% 16.52% 1,638.63%
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Acquired Fund Fees and Expenses(2) 0.33% 0.33% 0.33% 0.33%
----------------------------------------------------------------------------------------------------------
Total Annual Fund Operating Expenses 11.62% 10.78% 17.85% 1,640.46%
----------------------------------------------------------------------------------------------------------
Fee Waivers and Expense Reimbursements(3) (9.69%) (8.10%) (16.17%) (1,638.28%)
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Total Annual Fund Operating Expenses
After Fee Waivers and Expense Reimbursements 1.93% 2.68% 1.68% 2.18%
----------------------------------------------------------------------------------------------------------
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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 Acquired Fund Fees and Expenses are not taken into consideration in the
expense limitation because they are not Fund operating expenses, but
rather, are imputed fees and expenses.
3 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 1.35%
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 1.70% 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 1.70% 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 I R3 A C I R3
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1 Year $ 735 $ 371 $ 171 $ 221 $ 735 $ 271 $ 171 $ 221
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3 Years 1,181 892 591 743 1,181 892 591 743
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5 Years 1,663 1,550 1,050 1,303 1,663 1,550 1,050 1,303
----------------------------------------------------------------------------------------------------------------
10 Years 2,987 3,313 2,321 2,830 2,987 3,313 2,321 2,830
----------------------------------------------------------------------------------------------------------------
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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 31%
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 equity securities of U.S. listed companies with small market
capitalizations ("Small-Cap Companies") at the time of investment. Currently, a
company will be considered to be a Small-Cap Company if its market
capitalization at the time of purchase is within the range of companies in the
Russell 2000 Index or the S&P SmallCap 600 Index during the most recent 12-month
period (based on month-end data). Because market capitalization is measured at
the time of initial purchase, if the market capitalization of a company included
in the Fund grows above "small-cap," the Fund shall not be required to sell such
security solely because it is no longer a Small-Cap Company.
The portfolio managers seek to invest in Small-Cap Companies that in the
portfolio managers' opinion have produced solid returns over extended periods of
time. The portfolio managers' investment strategy is based on the rationale that
a company which creates superior value, reflected in above-average operating
returns, will ultimately have a stock price reflecting that superior
performance.
The portfolio managers follow a disciplined, research driven, investment process
which seeks to uncover companies trading at discounts to their intrinsic values.
By investing in stocks according to a value-based investment philosophy, the
portfolio managers seek to enhance the long-term growth potential while limiting
downside risk. Companies in which the portfolio managers invest are those that
the portfolio managers expect to create above-average growth in value relative
to their industries and to the overall market. These companies may include real
estate investment trusts ("REITs") and business development companies ("BDCs").
Once such a company is identified, an extensive valuation analysis is performed
to determine if its stock price reflects its underlying value.
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.
BDC RISK. The Fund may invest in BDCs which may carry risks similar to those of
a private equity or venture capital fund. BDCs are not redeemable at the option
of the shareholder and they may trade in the market at a discount to their net
asset value. The BDCs held by the Fund may employ the use of leverage their
portfolios through borrowings or the issuance of preferred stock. While leverage
often serves to increase the yield of a BDC, this leverage also subjects a BDC
to increased risks, including the likelihood of increased volatility and the
possibility that a BDC's common share income will fall if the dividend rate of
the preferred shares or the interest rate on any borrowings rises.
EQUITY SECURITIES RISK. The Fund invests in equity securities. The value of Fund
shares will fluctuate with changes in the value of these equity securities.
Equity securities prices fluctuate for several reasons, including changes in
investors' perceptions of the financial condition of an issuer or the general
condition of the relevant stock market, such as the current market volatility,
or when political or economic events affecting the issuers occur. In addition,
common stock prices may be particularly sensitive to rising interest rates, as
the cost of the capital rises and borrowing costs increase.
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.
INDUSTRIALS COMPANIES RISK. Industrials companies convert unfinished goods into
finished durables used to manufacture other goods or provide services. Some
industrials companies are involved in electrical equipment and components,
industrial products, manufactured housing and telecommunications equipment.
General risks of industrials companies include the general state of the economy,
intense competition, consolidation, domestic and international politics, excess
capacity and consumer demand and spending trends. In addition, they may also be
significantly affected by overall capital spending levels, economic cycles,
technical obsolescence, delays in modernization, labor relations, government
regulations and e-commerce initiatives.
MARKET CAPITALIZATION RISK. The Fund normally invests at least 80% of its assets
in Small-Cap Companies. Because the market capitalization is measured at the
time of its initial purchase, the Fund will not be forced to sell a stock
because the stock has exceeded or fallen below the market capitalization range.
Because of market movement, there can be no assurance that the securities held
by the Fund will stay within the given market capitalization range. As a result,
the Fund may be exposed to additional risk or investors may not be given the
opportunity to invest fully in a certain market capitalization range.
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.
REAL ESTATE INVESTMENT RISK. The Fund invests in companies in the real estate
industry, including REITs. Therefore, 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 economic conditions;
decreases in market rates for rents; increases in competition, property taxes,
capital expenditures or operating expenses; and other economic, political or
regulatory occurrences affecting companies in the real estate industry.
REIT RISK. 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.
SMALL CAP RISK. The Fund invests in Small-Cap Companies. Such companies may be
more vulnerable to adverse general market or economic developments, and their
securities may be less liquid and may experience greater price volatility than
larger, more established companies as a result of several factors, including
limited trading volumes, products or financial resources, management
inexperience and dependence on a few key people, and less publicly available
information. Accordingly, such companies are generally subject to greater market
risk than larger, more established companies. The market movements of equity
securities issued by issuers with smaller capitalizations may be more abrupt or
erratic than the market movements of equity securities of larger, more
established companies or the stock market in general. Historically, smaller
capitalization companies have sometimes gone through extended periods when they
did not perform as well as larger companies. In addition, equity securities of
Small-Cap Companies may be less liquid than those of larger companies.
VALUE INVESTING RISK. The Fund focuses its investments on securities that the
portfolio managers believe are undervalued or inexpensive relative to other
investments. These types of securities may present risks in addition to the
general risks associated with investing in them. These securities generally are
selected on the basis of an issuer's business and economic fundamentals or the
securities' current and projected credit profiles, relative to current market
price. Such securities are subject to the risk of misestimating certain
fundamental factors. Disciplined adherence to a "value" investment mandate
during periods in which that style is "out of favor" can result in significant
underperformance relative to overall market indices and other managed investment
vehicles that pursue growth style investments and/or flexible style mandates.
ANNUAL TOTAL RETURN
The bar chart and table below illustrate the calendar year returns 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 two
broad-based securities market indices. 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/CONFLUENCE SMALL CAP VALUE FUND--TOTAL RETURNS 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 15.20%
2013 24.93%
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During the two-year period ended December 31, 2013, the Fund's highest and
lowest calendar quarter returns were 8.91% and -1.33%, respectively, for the
quarters ended September 30, 2013 and June 30, 2012. 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 18.06% 10.32% 2/24/2011
Class C - Return Before Taxes 22.97% 10.31% 3/2/2011
Class I - Return Before Taxes 26.22% 12.90% 1/11/2011
Class R3 - Return Before Taxes 24.62% 11.38% 3/2/2011
Class A - Return After Taxes on Distributions 16.63% 9.63% 2/24/2011
Class A - Return After Taxes on Distributions and Sale of Shares 10.90% 7.85% 2/24/2011
Russell 2000(R) Value Index 34.52% 14.34% 1/11/2011*
Russell 2000(R) Index 38.82% 15.47% 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
Confluence Investment Management LLC ("Confluence" or the "Sub-Advisor")
PORTFOLIO MANAGERS
The following persons are members of Confluence's investment committee and
serve as the portfolio managers of the Fund:
o Mark Keller, CFA, Chief Executive Officer and Chief Investment
Officer of Confluence;
o Daniel Winter, CFA, Senior Vice President and Portfolio Manager of
Confluence;
o David Miyazaki, CFA, Senior Vice President and Portfolio Manager of
Confluence; and
o Chris Stein, Vice President and Portfolio Manager of Confluence.
Each portfolio manager has managed the Fund since 2011.
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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