0001282850 2025-05-31 2026-05-31 0001282850 2026-05-31 0001282850 FCT:ConversionRiskMember 2025-05-31 2026-05-31 0001282850 FCT:CreditAgencyRiskMember 2025-05-31 2026-05-31 0001282850 FCT:CreditAndBelowInvestmentGradeSecuritiesRiskMember 2025-05-31 2026-05-31 0001282850 FCT:CurrentMarketConditionsRiskMember 2025-05-31 2026-05-31 0001282850 FCT:CyberSecurityRiskMember 2025-05-31 2026-05-31 0001282850 FCT:FinancialCompaniesRiskMember 2025-05-31 2026-05-31 0001282850 FCT:HealthCareCompaniesRiskMember 2025-05-31 2026-05-31 0001282850 FCT:IlliquiidSecuritiesRiskMember 2025-05-31 2026-05-31 0001282850 FCT:InformationTechnologyCompaniesRiskMember 2025-05-31 2026-05-31 0001282850 us-gaap:InterestRateRiskMember 2025-05-31 2026-05-31 0001282850 FCT:LeverageRiskMember 2025-05-31 2026-05-31 0001282850 FCT:ManagementRiskAndRelianceOnKeyPersonnelMember 2025-05-31 2026-05-31 0001282850 FCT:MarketDiscountFromNetAssetValueMember 2025-05-31 2026-05-31 0001282850 FCT:MarketRiskMember 2025-05-31 2026-05-31 0001282850 FCT:NonUSSecuritiesRiskMember 2025-05-31 2026-05-31 0001282850 FCT:OperationalRiskMember 2025-05-31 2026-05-31 0001282850 FCT:PotentialConflictsOfInterestRiskMember 2025-05-31 2026-05-31 0001282850 us-gaap:PrepaymentRiskMember 2025-05-31 2026-05-31 0001282850 FCT:ReinvestmentRiskMember 2025-05-31 2026-05-31 0001282850 FCT:RisksAssoicataedWithInvestmentsInDistressedIssuersMember 2025-05-31 2026-05-31 0001282850 FCT:SecondLienLoanRiskMember 2025-05-31 2026-05-31 0001282850 FCT:SeniorLoanRiskMember 2025-05-31 2026-05-31 0001282850 FCT:ValuationRiskMember 2025-05-31 2026-05-31 shares iso4217:USD shares pure false N-2 0001282850 N-CSR First Trust Senior Floating Rate Income Fund II 2026-05-31 -0.0203 Number of Common Shares outstanding (unlimited number of Common Shares has been authorized) 25983388 9.86 9.66 <div id="xdx_80D_ecef--InvestmentObjectivesAndPracticesTextBlock_zyYjIAF6OWX5" style="margin-top: 15pt"><span style="font: bold 10pt Times New Roman; color: #000000">Investment Objectives</span><span style="font: bold 10pt/11pt Times New Roman; color: #000000"> </span></div> <div style="line-height: 11.5pt; margin-top: 3.5pt; text-align: left"> <div style="margin-top: 3pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund’s primary objective is to seek a high level of current income. As a secondary objective, the Fund attempts to preserve capital.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span></div> </div> <div style="line-height: 11pt; margin-top: 15.5pt; text-align: center"> <div style="margin-top: 15pt"><span style="font: bold 10pt Times New Roman; color: #000000">Principal Investment Policies</span></div> </div> <div style="line-height: 11.5pt; margin-top: 3.5pt; text-align: left"> <div style="margin-top: 3pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund pursues its investment objectives through investment in a portfolio of Senior Loans. There can be no assurance that the Fund </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">will achieve its investment objectives. Investment in Senior Loans involves credit risk and, during periods of generally declining credit </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">quality, it may be particularly difficult for the Fund to achieve its secondary investment objective.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Under normal market conditions, the Fund invests at least 80% of its Managed Assets in a diversified portfolio of Senior Loans. The </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">portion of the Fund’s assets invested in Senior Loans will vary from time to time consistent with the Fund’s investment objectives, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changes in market prices for Senior Loans, changes in interest rates and other economic and market factors. Senior Loans generally </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">hold one of the most senior positions in the capital structure of a business entity (the “Borrower”), are typically secured with specific </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">stockholders of the Borrower. The proceeds of Senior Loans primarily are used to finance leveraged buyouts, recapitalizations, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">mergers, acquisitions, stock repurchases, and, to a lesser extent, to finance internal growth and for other corporate purposes. Senior </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Loans have rates of interest which are typically redetermined either monthly, quarterly or semiannually by reference to a base lending </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">rate, plus a premium. The Senior Loans in which the Fund invests are primarily below investment grade instruments, commonly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">referred to as “high yield” securities or “junk bonds.”</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Under normal market conditions, the Fund may also:</span></div> </div> <div> <div style="clear: both; margin-top: 3.5pt; position: relative; width: 100%"> <div style="float: left; line-height: 11pt; margin-left: 24pt; text-align: left; width: 3.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">•</span></div> <div style="float: left; line-height: 11pt; margin-left: 8.5pt; text-align: left; width: 499pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Invest up to 10% of its Managed Assets through purchasing revolving credit facilities, investment grade debtor-in-possession </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">financing, unsecured loans, other floating rate debt securities, such as notes, bonds, and asset-backed securities (such as </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">collateralized loan obligations (“CLOs”)), investment grade loans and fixed income debt obligations of any maturity, money </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">market instruments, such as commercial paper, and publicly-traded high yield debt securities.</span></div> </div> <div style="clear: both; position: relative"> </div> </div> <div> <div style="clear: both; margin-top: 3.5pt; position: relative; width: 100%"> <div style="float: left; line-height: 11pt; margin-left: 24pt; text-align: left; width: 3.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">•</span></div> <div style="float: left; line-height: 11pt; margin-left: 8.5pt; text-align: left; width: 499pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Invest up to 10% of its Managed Assets in securities of:</span></div> </div> <div style="clear: both; position: relative"> </div> </div> <div> <div style="clear: both; margin-top: 8.5pt; position: relative; width: 100%"> <div style="float: left; line-height: 11.5pt; margin-left: 36pt; text-align: left; width: 15pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">o</span></div> <div style="float: left; line-height: 11.5pt; margin-left: 9pt; text-align: left; width: 475pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Firms that, at the time of acquisition, have defaulted on their debt obligations and/or filed for protection under Chapter </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">11 of the U.S. Bankruptcy Code or have entered into a voluntary reorganization in conjunction with their creditors and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">stakeholders in order to avoid a bankruptcy filing; or</span></div> </div> <div style="clear: both; position: relative"> </div> </div> <div> <div style="clear: both; margin-top: 2.5pt; position: relative; width: 100%"> <div style="float: left; line-height: 11.5pt; margin-left: 36pt; text-align: left; width: 15pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">o</span></div> <div style="float: left; line-height: 11.5pt; margin-left: 9pt; text-align: left; width: 475pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Firms prior to an event of default whose acute operating and/or financial problems have resulted in the markets valuing </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">their respective securities and debt at sufficiently discounted prices so as to be yielding, should they not default, a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">significant premium over comparable duration U.S. Treasury bonds.</span></div> </div> <div style="clear: both; position: relative"> </div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">These foregoing investments are comprised of Senior Loans and, on limited occasions, equity and debt securities acquired in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">connection therewith.</span></div> </div> <div> <div style="clear: both; margin-top: 3.5pt; position: relative; width: 100%"> <div style="float: left; line-height: 11pt; margin-left: 24pt; text-align: left; width: 3.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">•</span></div> <div style="float: left; line-height: 11pt; margin-left: 8.5pt; text-align: left; width: 499pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Invest up to 15% of its Managed Assets in U.S. dollar-denominated foreign investments, exclusively in developed countries </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and territories of those countries, but in no case will the Fund invest in securities of issuers located in emerging markets.</span></div> </div> <div style="clear: both; position: relative"> </div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">It is anticipated that at least 80% of the Fund’s Managed Assets are invested in lower grade debt instruments, although from time to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">time all of the Fund’s Managed Assets may be invested in such lower grade debt instruments. The Fund may consider an expected </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">rating provided by a nationally recognized statistical rating organization (“NRSRO”) as if it were a final rating. The Fund’s investments </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in debt instruments may have fixed or variable principal payments and all types of interest rate and reset terms, including, but not </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">limited to, fixed rate, adjustable rate, zero coupon, contingent, deferred, payment-in-kind and auction rate features.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund does not intend to purchase publicly-traded equity securities but may receive such securities as a result of a restructuring of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the debt of the issuer or the reorganization of a Senior Loan or as part of a package of securities acquired together with the Senior </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Loans of an issuer.</span></div> </div> <div style="clear: both"> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> <span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_2"></span> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund may enter into certain derivative transactions to seek to manage the risks of the Fund’s portfolio securities and certain of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">these derivative transactions may provide investment leverage to the Fund’s portfolio. The Fund does not enter into derivative </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">transactions as a principal part of its investment strategy.</span></div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">“Managed Assets” means the gross asset value of the Fund (including assets attributable to the Fund’s preferred shares of beneficial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">interest (“Preferred Shares”), if any, and the principal amount of borrowings) minus the sum of the Fund’s accrued and unpaid </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">dividends on any outstanding Preferred Shares and accrued liabilities (other than the principal amount of any borrowings incurred or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of commercial paper or notes issued by the Fund). For purposes of determining Managed Assets, the liquidation preference of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Preferred Shares is not treated as a liability. Percentage limitations described herein are as of the time of investment by the Fund and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may be exceeded on a going-forward basis as a result of market value fluctuations of the Fund’s portfolio and other events.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund’s investment objectives are considered fundamental and may not be changed without shareholder approval. The remainder of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the Fund’s investment policies, including its investment strategy, are considered non-fundamental and may be changed by the Board of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Trustees without shareholder approval. The Fund will provide investors with at least 60 days’ prior notice of any change in the Fund’s </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investment strategy. There can be no assurance that the Fund’s investment objectives will be achieved.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="font: italic bold 10pt Times New Roman; color: #000000">Fundamental Investment Policies</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund, as a fundamental policy, may not:</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">1. With respect to 75% of its total assets, purchase any securities, if as a result more than 5% of the Fund’s total assets would </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">then be invested in securities of any single issuer or if, as a result, the Fund would hold more than 10% of the outstanding </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">voting securities of any single issuer; provided, that Government securities (as defined in the Investment Company Act of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">1940 (the “1940 Act”)), securities issued by other investment companies and cash items (including receivables) shall not be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">counted for purposes of this limitation.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">2. Purchase any security if, as a result of the purchase, 25% or more of the Fund’s total assets (taken at current value) would be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">invested in the securities of Borrowers and other issuers having their principal business activities in the same industry; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">provided, that this limitation shall not apply with respect to obligations issued or guaranteed by the U.S. Government or by </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">its agencies or instrumentalities.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">3. Borrow money, except as permitted by the 1940 Act, the rules thereunder and interpretations thereof or pursuant to a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Commission exemptive order.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">4. Issue senior securities, as defined in the 1940 Act, other than: (i) preferred shares which immediately after issuance will have </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">asset coverage of at least 200%; (ii) indebtedness which immediately after issuance will have asset coverage of at least </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">300%; (iii) the borrowings permitted by investment restriction 3 above, or (iv) pursuant to a Commission exemptive order.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">5. Make loans of money or property to any person, except for obtaining interests in Senior Loans in accordance with its </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investment objectives, through loans of portfolio securities or the acquisition of securities subject to repurchase agreements, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or pursuant to a Commission rule or exemptive order.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">6. Act as an underwriter of securities, except to the extent the Fund may be deemed to be an underwriter in certain cases when </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">disposing of its portfolio investments or acting as an agent or one of a group of co-agents in originating Senior Loans.</span></div> </div> <div style="line-height: 11.5pt; margin-left: 42pt; margin-top: 8pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: -18pt">7. Purchase or sell real estate, commodities or commodities contracts except pursuant to the exercise by the Fund of its rights </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">under loan agreements, bankruptcy or reorganization, or pursuant to a Commission rule or exemptive order, and except to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the extent the interests in Senior Loans the Fund may invest in are considered to be interests in real estate, commodities or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">commodities contracts and except to the extent that hedging instruments the Fund may invest in are considered to be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">commodities or commodities contracts.</span></div> </div> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">For purposes of fundamental investment restriction numbers 1 and 2 above, the Fund treats the Lender selling a participation and any </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">persons interpositioned between the Lender and the Fund as an issuer. The Fund may incur borrowings and/or issue series of notes or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">other senior securities in an amount up to 33-1/3% (or such other percentage to the extent permitted by the 1940 Act) of its total assets </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(including the amount borrowed) less all liabilities other than borrowings.</span></div> <div id="xdx_80B_ecef--RiskFactorsTableTextBlock_zJHkctKCjiFb" style="margin-top: 15pt"><span style="font: bold 10pt Times New Roman; color: #000000">Principal Risks</span></div> <div style="line-height: 11.5pt; margin-top: 3pt; text-align: left"> <div style="margin-top: 3pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">assurance that the Fund will achieve its investment objectives. The following discussion summarizes the principal risks associated with </span></div> </div> <div style="clear: both"> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> <div> <div><span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_3"></span> <div style="page-break-after: always; position: relative"> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="float: left; margin-left: 36pt; margin-top: 1pt; width: 540pt; min-height: 654pt"> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investing in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">therewith, files reports, proxy statements and other information that is available for review. The order of the below risk factors does not </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">indicate the significance of any particular risk factor.</span></div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_890_ecef--RiskTextBlock_hcef--RiskAxis__custom--ConversionRiskMember_zDpnX3Luyh1i" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Conversion Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Board of Trustees and the shareholders of the Fund have approved the reorganization of the Fund into a newly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">created exchange-traded fund (“ETF”). It is currently expected that the transaction will be consummated on August 10, 2026, subject </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is no assurance when or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">whether such regulatory requirements or approvals and customary closing conditions required for the transaction will be obtained or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">completed. Under the terms of the proposed transaction, shareholders of the Fund will become shareholders of the ETF, which will </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">have its own investment strategies, and thereafter cease to be a shareholder of the Fund. Prior to the consummation of the transaction </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the Fund will transition its portfolio, which will involve holding increased levels of cash or cash equivalents. As a result, the Fund may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">not be fully invested in accordance with its principal investment strategy during this period. This may affect the Fund’s performance </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and could result in returns that differ from those that would be expected if the Fund were fully invested in accordance with its principal </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investment strategy. More information on the proposed transaction, including the risks and considerations associated with the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">transaction as well as the risks of investing in the new ETF, are contained in registration statement/proxy materials which were </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">distributed to the Fund’s shareholders. Shareholders should refer to such registration statement/proxy materials.</span></div> <div id="xdx_8A0_zTwqrqmzTmm2"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_897_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditAgencyRiskMember_z3TvAkHcKWT4" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Credit Agency Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Credit ratings are determined by credit rating agencies and are only the opinions of such entities. Ratings </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity of securities. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely affect the credit </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">ratings of securities held by the Fund or such credit rating agency’s ability to evaluate creditworthiness and, as a result, may adversely </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">affect those securities’ perceived or actual credit risk.</span></div> <div id="xdx_8AB_ztzhRF7iuNc3"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_899_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditAndBelowInvestmentGradeSecuritiesRiskMember_zio2YCUhNdD2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Credit and Below-Investment Grade Securities Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Credit risk is the risk that the issuer or other obligated party of a debt security </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends or interest and/or repay principal, when due. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Below-investment grade instruments, including instruments that are not rated but judged to be of comparable quality, are commonly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">referred to as high-yield securities or “junk” bonds and are considered speculative with respect to the issuer’s capacity to pay dividends </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or interest and repay principal and are more susceptible to default or decline in market value than investment grade securities due to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adverse economic and business developments. High-yield securities are often unsecured and subordinated to other creditors of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuer. The market values for high-yield securities tend to be very volatile, and these securities are generally less liquid than investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">grade securities. For these reasons, an investment in the Fund is subject to the following specific risks: (i) increased price sensitivity to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss due to default or declining credit quality; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iii) adverse company specific events more likely to render the issuer unable to make dividend, interest and/or principal payments; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iv) negative perception of the high-yield market which may depress the price and liquidity of high-yield securities; (v) volatility; and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(vi) liquidity.</span></div> <div id="xdx_8A4_zKkbzodebDe3"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_899_ecef--RiskTextBlock_hcef--RiskAxis__custom--CurrentMarketConditionsRiskMember_zZ3aHShljF6j" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Current Market Conditions Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Current market conditions risk is the risk that a particular investment, or shares of the Fund in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">central banks have raised interest rates; however, the Federal Reserve has begun to lower interest rates and may continue to do so. U.S. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changes could adversely impact the Fund’s ability to achieve its investment strategies or make certain investments. Potential future </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Additionally, challenges in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">commercial real estate markets, including high interest rates, declining valuations and elevated vacancies, could have a broader impact </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">on financial markets. The ongoing adversarial political climate in the United States, as well as political and diplomatic events both </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">which could have a negative impact on the Fund’s investments and operations. The change in administration resulting from the 2024 </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">United States national elections could result in significant impacts to international trade relations, tax and immigration policies, and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">other aspects of the national and international political and financial landscape, which could affect, among other things, inflation and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the securities markets generally. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investor and consumer confidence and may adversely impact financial markets and the broader economy. For example, ongoing armed </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">conflicts between Russia and Ukraine in Europe and among the United States, Israel, Iran, Hamas, Hezbollah and other militant </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Russia, Europe, the Middle East, the United States, and other nations. Such events may also disrupt global trade and supply chains, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">increase sanctions and other governmental actions, and contribute to volatility in oil and natural gas markets. The hostilities and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">sanctions resulting from those hostilities have and could continue to have a significant impact on certain Fund investments as well as </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund performance and liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, </span></div> </div> </div> <div style="clear: both"> </div> </div> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> </div> <div> <div><span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_4"></span> <div style="page-break-after: always; position: relative"> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="float: left; margin-left: 36pt; margin-top: 1pt; width: 540pt; min-height: 654pt"> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may be adversely impacted by trade disputes, including the imposition of tariffs, and other matters. For example, the United States has </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">imposed trade barriers and restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Taiwan, continually threatening an invasion. If the political climate between the United States and China does not improve or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets and individual securities may be adversely affected, and the value of the Fund’s assets may go down. A public health crisis and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the ensuing policies enacted by governments and central banks may cause significant volatility and uncertainty in global financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets, negatively impacting global growth prospects. As the COVID-19 global pandemic illustrated, such events may affect certain </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">geographic regions, countries, sectors and industries more significantly than others. Advancements in technology may also adversely </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">development and increased regulation of artificial intelligence. Additionally, cyber security breaches of both government and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">non-government entities could have negative impacts on infrastructure and the ability of such entities, including the Fund, to operate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">properly. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and could result in disruptions in the trading markets.</span></div> <div id="xdx_8A8_zN1ouxIUGxSj" style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> <div style="line-height: 11.5pt; text-align: left"> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--CyberSecurityRiskMember_zWezPCuMDDi" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Cyber Security Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Fund is susceptible to operational, information security and related risks through breaches in cyber security. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">suffer data corruption or lose operational capacity, any of which could result in a material adverse effect on the Fund or its </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">shareholders. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">denial-of-service attacks through efforts to make network services unavailable to intended users. Emerging threats like ransomware or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">zero-day exploits could also cause disruptions to Fund operations. In addition, cyber security breaches of the issuers of securities in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">which the Fund invests or the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or Sub-Advisor, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">as applicable, among many other third-party service providers, can also subject the Fund to many of the same risks associated with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">direct cyber security breaches. Further, errors, misconduct, or compromise of accounts of employees of the Fund or its third-party </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">service providers can also create material cybersecurity risks. Although the Fund has established risk management systems designed to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">reduce the risks associated with cyber security, there is no guarantee that such efforts will succeed, especially because the Fund does </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">not directly control the cyber security systems of issuers or third party service providers. Cyber security incidents may also trigger </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund obligations under data privacy laws, potentially increasing notification and compliance burdens. Artificial intelligence (“AI”) and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">machine learning technologies used by the Fund, the Advisor or third-party service providers may allow the unintended introduction of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">vulnerabilities into infrastructures and applications, which could exacerbate these risks or result in cyber incidents that implicate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">personal data. The Fund and its shareholders could be negatively impacted as a result of these cyber risks associated with AI </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">technologies. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future. Cyber security </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">incidents affecting issuers in whose securities the Fund invests may also have a negative impact on the value of the securities of such </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuers, and in turn, the value of the Fund.</span></div> <div id="xdx_8A8_zkUgJXVkqyUh"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; text-align: left"> <div id="xdx_89A_ecef--RiskTextBlock_hcef--RiskAxis__custom--FinancialCompaniesRiskMember_zIgAF0jfwGV1" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Financial Companies Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Fund may invest in financial companies. Financial companies are subject to extensive governmental </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge, the amount and types </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of capital they must maintain and, potentially, their size. Governmental regulation may change frequently and may have significant </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adverse consequences for financial companies, including effects not intended by such regulation. The impact of more stringent capital </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">requirements, or recent or future regulation in various countries, on any individual financial company or on financial companies as a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">whole cannot be predicted. Certain risks may impact the value of investments in financial companies more severely than those of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investments in other issuers, including the risks associated with companies that operate with substantial financial leverage. Financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies may also be adversely affected by volatility in interest rates, loan losses and other customer defaults, decreases in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies in particular may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">profitability. Financial companies are also a target for cyber attacks and may experience technology malfunctions and disruptions as a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">result.</span></div> <div id="xdx_8AB_zltNjQtXNrK8" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--HealthCareCompaniesRiskMember_zTXB6cb7eDNl" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Health Care Companies Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Through the Fund’s investments in senior loans, the Fund may be significantly exposed to companies </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in the health care sector.  Health care companies are involved in medical services or health care, including biotechnology research and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">production, drugs and pharmaceuticals and health care facilities and services. These companies are subject to extensive competition, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">generic drug sales or the loss of patent protection, product liability litigation and increased government regulation. Research and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">development costs of bringing new drugs to market are substantial, and there is no guarantee that the product will ever come to market. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Health care facility operators may be affected by the demand for services, efforts by government or insurers to limit rates, restriction of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">government financial assistance and competition from other providers.</span></div> <div id="xdx_8AF_zm49Y4RTHzL6"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> </div> <div style="clear: both"> </div> </div> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> </div> <div> <div><span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_5"></span> <div style="page-break-after: always; position: relative"> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="float: left; margin-left: 36pt; margin-top: 1pt; width: 540pt; min-height: 654pt"> <div id="xdx_89C_ecef--RiskTextBlock_hcef--RiskAxis__custom--IlliquiidSecuritiesRiskMember_z7Vg69UwKJjf" style="line-height: 11.5pt; text-align: left"><span style="font: bold 10pt Times New Roman; color: #000000">Illiquid Securities Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund invests a substantial portion of its assets in lower-quality debt issued by companies that are highly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leveraged. Lower-quality debt tends to be less liquid than higher-quality debt. Moreover, smaller debt issues tend to be less liquid than </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">larger debt issues. Although the resale or secondary market for senior loans is growing, it is currently limited. There is no organized </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">exchange or board of trade on which senior loans are traded. Instead, the secondary market for senior loans is an unregulated </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">inter-dealer or inter-bank resale market. In addition, senior loans in which the Fund invests may require the consent of the borrower </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and/or agent prior to the settlement of the sale or assignment. These consent requirements can delay or impede the Fund’s ability to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">settle the sale of senior loans. Depending on market conditions, the Fund may have difficulty disposing its senior loans, which may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adversely impact its ability to obtain cash to repay debt, to pay dividends, to pay expenses or to take advantage of new investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">opportunities.</span></div> <div style="line-height: 11.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund pays for or recovers upon the sale of such securities. Illiquid securities are also more difficult to value, especially in challenging </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets.</span></div> <div id="xdx_8AF_z88ixXfe3lmk" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; text-align: left"> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--InformationTechnologyCompaniesRiskMember_zH8wmRxDe734" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Information Technology Companies Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Information technology companies produce and provide hardware, software and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">information technology systems and services. Information technology companies are generally subject to the following risks: rapidly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changing technologies and existing product obsolescence; short product life cycles; fierce competition; aggressive pricing and reduced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">frequent new product introductions and new market entrants. Information technology companies may be smaller and less experienced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Information technology company stocks, particularly those involved with the internet, have experienced extreme price and volume </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">fluctuations that are often unrelated to their operating performance. In addition, information technology companies are particularly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">vulnerable to federal, state and local government regulation, and competition and consolidation, both domestically and internationally, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">including competition from foreign competitors with lower production costs. Information technology companies also face competition </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">for services of qualified personnel and heavily rely on patents and intellectual property rights and the ability to enforce such rights to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintain a competitive advantage.</span></div> <div id="xdx_8A4_z0bh1B4FbYqg"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_89C_ecef--RiskTextBlock_hcef--RiskAxis__us-gaap--InterestRateRiskMember_z6g6YIHH7Y4e" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Interest Rate Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The yield on the Fund’s common shares may rise or fall as market interest rates rise and fall, as senior loans pay </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">interest at rates which float in response to changes in market rates. Changes in prevailing interest rates can be expected to cause some </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">fluctuation in the Fund’s net asset value. Similarly, a sudden and significant increase in market interest rates may cause a decline in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund’s net asset value.</span></div> <div id="xdx_8A1_zWfZdAZ6fXzj"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_898_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeverageRiskMember_ziuHowM0anM6" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Leverage Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares will be less than if </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result in fluctuations in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor will be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">higher than if the Fund did not use leverage.</span></div> <div id="xdx_8AD_zM9yg3kShWmf"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskAndRelianceOnKeyPersonnelMember_zM8nheYWjpO5" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Management Risk and Reliance on Key Personnel.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The implementation of the Fund’s investment strategy depends upon the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">continued contributions of certain key employees of the Advisor, some of whom have unique talents and experience and would be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">impact on the Fund.</span></div> <div id="xdx_8A4_zZSzu0vO9oQg"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDiscountFromNetAssetValueMember_zGKO7VXNxFLd" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Market Discount from Net Asset Value.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Shares of closed-end investment companies such as the Fund frequently trade at a discount </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.</span></div> <div id="xdx_8AD_zdlJ4y9T1Ini"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_890_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketRiskMember_zXz6CUf23NY9" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Market Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest rates and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, market </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, natural </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">disasters, or other events could have a significant negative impact on the Fund and its investments. Any of such circumstances could </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">have a materially negative impact on the value of the Fund’s shares, the liquidity of an investment, and result in increased market </span></div> </div> </div> <div style="clear: both"> </div> </div> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> </div> <div> <div><span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_6"></span> <div style="page-break-after: always; position: relative"> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="float: left; margin-left: 36pt; margin-top: 1pt; width: 540pt; min-height: 654pt"> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">spread on the Fund’s shares may widen and the returns on investment may fluctuate.</span></div> <div id="xdx_8A5_zVdTEpxzx5H7" style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_891_ecef--RiskTextBlock_hcef--RiskAxis__custom--NonUSSecuritiesRiskMember_zkqyVH5Nnnyc" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Non-U.S. Securities Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund may invest a portion of its assets in securities of non-U.S. issuers. Investing in securities of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">non-U.S. issuers may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">there may be less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile than the U.S. market; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iii) potential adverse effects of fluctuations in currency exchange rates or controls on the value of the Fund’s investments; (iv) the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (v) the impact of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">economic, political, social or diplomatic events; (vi) certain non-U.S. countries may impose restrictions on the ability of non-U.S. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">be difficulty in obtaining or enforcing a court judgment abroad. These risks may be more pronounced to the extent that the Fund </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">invests a significant amount of its assets in companies located in one region.</span></div> <div id="xdx_8A1_z1MB3hF2dNb4"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--OperationalRiskMember_zdx1L38ULQx2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Operational Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">processes and technology or systems failures. These errors or failures may adversely affect the Fund’s operations, including its ability </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to execute its investment process and calculate or disseminate its NAV in a timely manner. The Fund relies on third parties for a range </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of services, including custody, valuation, administration, transfer services, securities lending and accounting, among many others. Any </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">objectives. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures, there is no way </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to completely protect against such risks. </span></div> <div id="xdx_8A5_zt0d9dftSj9l"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--PotentialConflictsOfInterestRiskMember_zhcvPlJqEe26" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Potential Conflicts of Interest Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> First Trust and the portfolio managers have interests which may conflict with the interests of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund. In particular, First Trust currently manages and may in the future manage and/or advise other investment funds or accounts with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the same or substantially similar investment objectives and strategies as the Fund. In addition, while the Fund is using leverage, the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">amount of the fees paid to First Trust for investment advisory and management services are higher than if the Fund did not use </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leverage because the fees paid are calculated based on managed assets. Therefore, First Trust has a financial incentive to leverage the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund.</span></div> <div id="xdx_8A4_zGiFJs4TpHC"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_893_ecef--RiskTextBlock_hcef--RiskAxis__us-gaap--PrepaymentRiskMember_zUiXtqfXTJeb" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Prepayment Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Loans are subject to prepayment risk. Prepayment risk is the risk that the borrower on a loan will repay principal </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(in part or in whole) prior to the scheduled maturity date. The degree to which borrowers prepay loans, whether as a contractual </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">requirement or at their election, may be affected by general business conditions, interest rates, the financial condition of the borrower </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and competitive conditions among loan investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">prepayment, either in part or in full, the actual outstanding debt on which the Fund derives interest income will be reduced. The Fund </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may not be able to reinvest the proceeds received on terms as favorable as the prepaid loan.</span></div> <div id="xdx_8A1_z9bITWj8QQ33"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8pt; text-align: left"> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--ReinvestmentRiskMember_z9luSCDFf9uh" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Reinvestment Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">from matured, traded or called instruments at market interest rates that are below the Fund’s portfolio’s current earnings rate. A decline </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in income could affect the common shares’ market price, level of distributions or the overall return of the Fund.</span></div> <div id="xdx_8A9_zERH9sMgD79k"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; text-align: left"> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--RisksAssoicataedWithInvestmentsInDistressedIssuersMember_zJC5tzcSfIMg" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Risks Associated with Investments in Distressed Issuers.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund may invest in instruments of distressed issuers, including firms </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">that have defaulted on their debt obligations and/or filed for bankruptcy protection.  Investing in such investments involves a far </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">greater level of risk than investing in issuers whose debt obligations are being met and whose debt trades at or close to its “par” value. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">These investments are highly speculative with respect to the issuer’s ability to continue to make interest payments and/or to pay its </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">principal obligations in full; can be very difficult to properly value, making them susceptible to a high degree of price volatility and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">rendering them less liquid than performing debt obligations; and, for issuers involved in a bankruptcy proceeding, can be subject to a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">high degree of uncertainty with regard to both the timing and the amount of the ultimate settlement.</span></div> <div id="xdx_8A0_zb9bP1xY0hrg" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span></div> </div> <div style="line-height: 11.5pt; text-align: left"> <div id="xdx_898_ecef--RiskTextBlock_hcef--RiskAxis__custom--SecondLienLoanRiskMember_z3MJWysyixk2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Second Lien Loan Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> A second lien loan may have a claim on the same collateral pool as the first lien or it may be secured by a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">separate set of assets. Second lien loans are typically secured by a second priority security interest or lien on specified collateral </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">securing the borrower’s obligation under the interest. Because second lien loans are second to first lien loans, they present a greater </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">degree of investment risk. Specifically, these loans are subject to the additional risk that the cash flow of the borrower and property </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">securing the loan may be insufficient to meet scheduled payments after giving effect to those loans with a higher priority. In addition, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loans that have a lower than first lien priority on collateral of the borrower generally have greater price volatility than those loans with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">a higher priority and may be less liquid.</span></div> <div id="xdx_8A2_zJtR4lyG5Nt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> </div> <div style="clear: both"> </div> </div> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> </div> <span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_7"></span> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--SeniorLoanRiskMember_zfRstKunku23" style="line-height: 11.5pt; text-align: left"><span style="font: bold 10pt Times New Roman; color: #000000">Senior Loan Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund invests in senior loans and therefore is subject to the risks associated therewith.  Investments in senior </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loans are subject to the same risks as investments in other types of debt securities, including credit risk, interest rate risk, liquidity risk </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and valuation risk (which may be heightened because of the limited public information available regarding senior loans and because </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions).  Further, no </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">active trading market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the need to sell a senior loan and which may make it difficult to value senior loans.  Senior loans may not be considered “securities” </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and the Fund may not be entitled to rely on the anti-fraud protections of the federal securities laws.</span></div> <div style="line-height: 11.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">In the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">experience a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">decline in the net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">acquiring a participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">by specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists of stock </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively illiquid, and/or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled interest </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or principal, and the collateral may not be readily liquidated. The senior loan market has seen a significant increase in loans with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">weaker lender protections including, but not limited to, limited financial maintenance covenants or, in some cases, no financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintenance covenants (i.e., “covenant-lite loans”) that would typically be included in a traditional loan agreement and general </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">weakening of other restrictive covenants applicable to the borrower such as limitations on incurrence of additional debt, restrictions on </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">payments of junior debt or restrictions on dividends and distributions. Weaker lender protections such as the absence of financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintenance covenants in a loan agreement and the inclusion of “borrower-favorable” terms may impact recovery values and/or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">trading levels of senior loans in the future. The absence of financial maintenance covenants in a loan agreement generally means that </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the lender may not be able to declare a default if financial performance deteriorates. This may hinder the Fund’s ability to reprice </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">credit risk associated with a particular borrower and reduce the Fund’s ability to restructure a problematic loan and mitigate potential </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loss. As a result, the Fund’s exposure to losses on investments in senior loans may be increased, especially during a downturn in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">credit cycle or changes in market or economic conditions.</span></div> <div id="xdx_8AB_zEKuJFwrDbab" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div id="xdx_893_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationRiskMember_zGjfDV8cNVs1" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Valuation Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The valuation of senior loans may carry more risk than that of common stock. Because the secondary market for </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">senior loans is limited, it may be difficult to value the loans held by the Fund.  Market quotations may not be readily available for some </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">senior loans and valuation may require more research than for liquid securities. In addition, elements of judgment may play a greater </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">role in the valuation of senior loans than for securities with a secondary market, because there is less reliable objective data available.  </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">These difficulties may lead to inaccurate asset pricing.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span><span style="color: #000000; font-family: Times New Roman; font-size: 1pt"> </span></div> <div id="xdx_8A4_zerR3at6boQh"> </div> <div id="xdx_890_ecef--RiskTextBlock_hcef--RiskAxis__custom--ConversionRiskMember_zDpnX3Luyh1i" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Conversion Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Board of Trustees and the shareholders of the Fund have approved the reorganization of the Fund into a newly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">created exchange-traded fund (“ETF”). It is currently expected that the transaction will be consummated on August 10, 2026, subject </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is no assurance when or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">whether such regulatory requirements or approvals and customary closing conditions required for the transaction will be obtained or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">completed. Under the terms of the proposed transaction, shareholders of the Fund will become shareholders of the ETF, which will </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">have its own investment strategies, and thereafter cease to be a shareholder of the Fund. Prior to the consummation of the transaction </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the Fund will transition its portfolio, which will involve holding increased levels of cash or cash equivalents. As a result, the Fund may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">not be fully invested in accordance with its principal investment strategy during this period. This may affect the Fund’s performance </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and could result in returns that differ from those that would be expected if the Fund were fully invested in accordance with its principal </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investment strategy. More information on the proposed transaction, including the risks and considerations associated with the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">transaction as well as the risks of investing in the new ETF, are contained in registration statement/proxy materials which were </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">distributed to the Fund’s shareholders. Shareholders should refer to such registration statement/proxy materials.</span></div> <div id="xdx_897_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditAgencyRiskMember_z3TvAkHcKWT4" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Credit Agency Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Credit ratings are determined by credit rating agencies and are only the opinions of such entities. Ratings </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity of securities. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely affect the credit </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">ratings of securities held by the Fund or such credit rating agency’s ability to evaluate creditworthiness and, as a result, may adversely </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">affect those securities’ perceived or actual credit risk.</span></div> <div id="xdx_899_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditAndBelowInvestmentGradeSecuritiesRiskMember_zio2YCUhNdD2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Credit and Below-Investment Grade Securities Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Credit risk is the risk that the issuer or other obligated party of a debt security </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends or interest and/or repay principal, when due. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Below-investment grade instruments, including instruments that are not rated but judged to be of comparable quality, are commonly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">referred to as high-yield securities or “junk” bonds and are considered speculative with respect to the issuer’s capacity to pay dividends </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or interest and repay principal and are more susceptible to default or decline in market value than investment grade securities due to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adverse economic and business developments. High-yield securities are often unsecured and subordinated to other creditors of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuer. The market values for high-yield securities tend to be very volatile, and these securities are generally less liquid than investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">grade securities. For these reasons, an investment in the Fund is subject to the following specific risks: (i) increased price sensitivity to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss due to default or declining credit quality; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iii) adverse company specific events more likely to render the issuer unable to make dividend, interest and/or principal payments; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iv) negative perception of the high-yield market which may depress the price and liquidity of high-yield securities; (v) volatility; and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(vi) liquidity.</span></div> <div id="xdx_899_ecef--RiskTextBlock_hcef--RiskAxis__custom--CurrentMarketConditionsRiskMember_zZ3aHShljF6j" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Current Market Conditions Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Current market conditions risk is the risk that a particular investment, or shares of the Fund in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">central banks have raised interest rates; however, the Federal Reserve has begun to lower interest rates and may continue to do so. U.S. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changes could adversely impact the Fund’s ability to achieve its investment strategies or make certain investments. Potential future </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. Additionally, challenges in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">commercial real estate markets, including high interest rates, declining valuations and elevated vacancies, could have a broader impact </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">on financial markets. The ongoing adversarial political climate in the United States, as well as political and diplomatic events both </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">which could have a negative impact on the Fund’s investments and operations. The change in administration resulting from the 2024 </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">United States national elections could result in significant impacts to international trade relations, tax and immigration policies, and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">other aspects of the national and international political and financial landscape, which could affect, among other things, inflation and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the securities markets generally. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investor and consumer confidence and may adversely impact financial markets and the broader economy. For example, ongoing armed </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">conflicts between Russia and Ukraine in Europe and among the United States, Israel, Iran, Hamas, Hezbollah and other militant </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Russia, Europe, the Middle East, the United States, and other nations. Such events may also disrupt global trade and supply chains, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">increase sanctions and other governmental actions, and contribute to volatility in oil and natural gas markets. The hostilities and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">sanctions resulting from those hostilities have and could continue to have a significant impact on certain Fund investments as well as </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund performance and liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, </span></div> <div style="clear: both"> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> <span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_4"></span> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may be adversely impacted by trade disputes, including the imposition of tariffs, and other matters. For example, the United States has </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">imposed trade barriers and restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Taiwan, continually threatening an invasion. If the political climate between the United States and China does not improve or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets and individual securities may be adversely affected, and the value of the Fund’s assets may go down. A public health crisis and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the ensuing policies enacted by governments and central banks may cause significant volatility and uncertainty in global financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets, negatively impacting global growth prospects. As the COVID-19 global pandemic illustrated, such events may affect certain </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">geographic regions, countries, sectors and industries more significantly than others. Advancements in technology may also adversely </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">development and increased regulation of artificial intelligence. Additionally, cyber security breaches of both government and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">non-government entities could have negative impacts on infrastructure and the ability of such entities, including the Fund, to operate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">properly. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and could result in disruptions in the trading markets.</span></div> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--CyberSecurityRiskMember_zWezPCuMDDi" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Cyber Security Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Fund is susceptible to operational, information security and related risks through breaches in cyber security. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">suffer data corruption or lose operational capacity, any of which could result in a material adverse effect on the Fund or its </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">shareholders. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">denial-of-service attacks through efforts to make network services unavailable to intended users. Emerging threats like ransomware or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">zero-day exploits could also cause disruptions to Fund operations. In addition, cyber security breaches of the issuers of securities in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">which the Fund invests or the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or Sub-Advisor, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">as applicable, among many other third-party service providers, can also subject the Fund to many of the same risks associated with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">direct cyber security breaches. Further, errors, misconduct, or compromise of accounts of employees of the Fund or its third-party </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">service providers can also create material cybersecurity risks. Although the Fund has established risk management systems designed to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">reduce the risks associated with cyber security, there is no guarantee that such efforts will succeed, especially because the Fund does </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">not directly control the cyber security systems of issuers or third party service providers. Cyber security incidents may also trigger </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund obligations under data privacy laws, potentially increasing notification and compliance burdens. Artificial intelligence (“AI”) and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">machine learning technologies used by the Fund, the Advisor or third-party service providers may allow the unintended introduction of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">vulnerabilities into infrastructures and applications, which could exacerbate these risks or result in cyber incidents that implicate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">personal data. The Fund and its shareholders could be negatively impacted as a result of these cyber risks associated with AI </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">technologies. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future. Cyber security </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">incidents affecting issuers in whose securities the Fund invests may also have a negative impact on the value of the securities of such </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuers, and in turn, the value of the Fund.</span></div> <div id="xdx_89A_ecef--RiskTextBlock_hcef--RiskAxis__custom--FinancialCompaniesRiskMember_zIgAF0jfwGV1" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Financial Companies Risk</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">. The Fund may invest in financial companies. Financial companies are subject to extensive governmental </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge, the amount and types </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of capital they must maintain and, potentially, their size. Governmental regulation may change frequently and may have significant </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adverse consequences for financial companies, including effects not intended by such regulation. The impact of more stringent capital </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">requirements, or recent or future regulation in various countries, on any individual financial company or on financial companies as a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">whole cannot be predicted. Certain risks may impact the value of investments in financial companies more severely than those of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investments in other issuers, including the risks associated with companies that operate with substantial financial leverage. Financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies may also be adversely affected by volatility in interest rates, loan losses and other customer defaults, decreases in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies in particular may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">profitability. Financial companies are also a target for cyber attacks and may experience technology malfunctions and disruptions as a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">result.</span></div> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--HealthCareCompaniesRiskMember_zTXB6cb7eDNl" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Health Care Companies Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Through the Fund’s investments in senior loans, the Fund may be significantly exposed to companies </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in the health care sector.  Health care companies are involved in medical services or health care, including biotechnology research and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">production, drugs and pharmaceuticals and health care facilities and services. These companies are subject to extensive competition, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">generic drug sales or the loss of patent protection, product liability litigation and increased government regulation. Research and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">development costs of bringing new drugs to market are substantial, and there is no guarantee that the product will ever come to market. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Health care facility operators may be affected by the demand for services, efforts by government or insurers to limit rates, restriction of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">government financial assistance and competition from other providers.</span></div> <div id="xdx_89C_ecef--RiskTextBlock_hcef--RiskAxis__custom--IlliquiidSecuritiesRiskMember_z7Vg69UwKJjf" style="line-height: 11.5pt; text-align: left"><span style="font: bold 10pt Times New Roman; color: #000000">Illiquid Securities Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund invests a substantial portion of its assets in lower-quality debt issued by companies that are highly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leveraged. Lower-quality debt tends to be less liquid than higher-quality debt. Moreover, smaller debt issues tend to be less liquid than </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">larger debt issues. Although the resale or secondary market for senior loans is growing, it is currently limited. There is no organized </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">exchange or board of trade on which senior loans are traded. Instead, the secondary market for senior loans is an unregulated </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">inter-dealer or inter-bank resale market. In addition, senior loans in which the Fund invests may require the consent of the borrower </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and/or agent prior to the settlement of the sale or assignment. These consent requirements can delay or impede the Fund’s ability to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">settle the sale of senior loans. Depending on market conditions, the Fund may have difficulty disposing its senior loans, which may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">adversely impact its ability to obtain cash to repay debt, to pay dividends, to pay expenses or to take advantage of new investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">opportunities.</span></div> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund pays for or recovers upon the sale of such securities. Illiquid securities are also more difficult to value, especially in challenging </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">markets.</span></div> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--InformationTechnologyCompaniesRiskMember_zH8wmRxDe734" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Information Technology Companies Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Information technology companies produce and provide hardware, software and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">information technology systems and services. Information technology companies are generally subject to the following risks: rapidly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changing technologies and existing product obsolescence; short product life cycles; fierce competition; aggressive pricing and reduced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">frequent new product introductions and new market entrants. Information technology companies may be smaller and less experienced </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Information technology company stocks, particularly those involved with the internet, have experienced extreme price and volume </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">fluctuations that are often unrelated to their operating performance. In addition, information technology companies are particularly </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">vulnerable to federal, state and local government regulation, and competition and consolidation, both domestically and internationally, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">including competition from foreign competitors with lower production costs. Information technology companies also face competition </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">for services of qualified personnel and heavily rely on patents and intellectual property rights and the ability to enforce such rights to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintain a competitive advantage.</span></div> <div id="xdx_89C_ecef--RiskTextBlock_hcef--RiskAxis__us-gaap--InterestRateRiskMember_z6g6YIHH7Y4e" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Interest Rate Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The yield on the Fund’s common shares may rise or fall as market interest rates rise and fall, as senior loans pay </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">interest at rates which float in response to changes in market rates. Changes in prevailing interest rates can be expected to cause some </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">fluctuation in the Fund’s net asset value. Similarly, a sudden and significant increase in market interest rates may cause a decline in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund’s net asset value.</span></div> <div id="xdx_898_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeverageRiskMember_ziuHowM0anM6" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Leverage Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares will be less than if </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result in fluctuations in </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor will be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">higher than if the Fund did not use leverage.</span></div> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskAndRelianceOnKeyPersonnelMember_zM8nheYWjpO5" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Management Risk and Reliance on Key Personnel.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The implementation of the Fund’s investment strategy depends upon the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">continued contributions of certain key employees of the Advisor, some of whom have unique talents and experience and would be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">impact on the Fund.</span></div> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDiscountFromNetAssetValueMember_zGKO7VXNxFLd" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Market Discount from Net Asset Value.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Shares of closed-end investment companies such as the Fund frequently trade at a discount </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.</span></div> <div id="xdx_890_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketRiskMember_zXz6CUf23NY9" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Market Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest rates and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, market </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, natural </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">disasters, or other events could have a significant negative impact on the Fund and its investments. Any of such circumstances could </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">have a materially negative impact on the value of the Fund’s shares, the liquidity of an investment, and result in increased market </span></div> <div style="clear: both"> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> <span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_6"></span> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="line-height: 11.5pt; text-align: left"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">spread on the Fund’s shares may widen and the returns on investment may fluctuate.</span></div> <div id="xdx_891_ecef--RiskTextBlock_hcef--RiskAxis__custom--NonUSSecuritiesRiskMember_zkqyVH5Nnnyc" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Non-U.S. Securities Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund may invest a portion of its assets in securities of non-U.S. issuers. Investing in securities of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">non-U.S. issuers may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">there may be less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile than the U.S. market; </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(iii) potential adverse effects of fluctuations in currency exchange rates or controls on the value of the Fund’s investments; (iv) the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (v) the impact of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">economic, political, social or diplomatic events; (vi) certain non-U.S. countries may impose restrictions on the ability of non-U.S. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">be difficulty in obtaining or enforcing a court judgment abroad. These risks may be more pronounced to the extent that the Fund </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">invests a significant amount of its assets in companies located in one region.</span></div> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--OperationalRiskMember_zdx1L38ULQx2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Operational Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">processes and technology or systems failures. These errors or failures may adversely affect the Fund’s operations, including its ability </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to execute its investment process and calculate or disseminate its NAV in a timely manner. The Fund relies on third parties for a range </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of services, including custody, valuation, administration, transfer services, securities lending and accounting, among many others. Any </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">objectives. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures, there is no way </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to completely protect against such risks. </span></div> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--PotentialConflictsOfInterestRiskMember_zhcvPlJqEe26" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Potential Conflicts of Interest Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> First Trust and the portfolio managers have interests which may conflict with the interests of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund. In particular, First Trust currently manages and may in the future manage and/or advise other investment funds or accounts with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the same or substantially similar investment objectives and strategies as the Fund. In addition, while the Fund is using leverage, the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">amount of the fees paid to First Trust for investment advisory and management services are higher than if the Fund did not use </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">leverage because the fees paid are calculated based on managed assets. Therefore, First Trust has a financial incentive to leverage the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Fund.</span></div> <div id="xdx_893_ecef--RiskTextBlock_hcef--RiskAxis__us-gaap--PrepaymentRiskMember_zUiXtqfXTJeb" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Prepayment Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Loans are subject to prepayment risk. Prepayment risk is the risk that the borrower on a loan will repay principal </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">(in part or in whole) prior to the scheduled maturity date. The degree to which borrowers prepay loans, whether as a contractual </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">requirement or at their election, may be affected by general business conditions, interest rates, the financial condition of the borrower </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and competitive conditions among loan investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">prepayment, either in part or in full, the actual outstanding debt on which the Fund derives interest income will be reduced. The Fund </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may not be able to reinvest the proceeds received on terms as favorable as the prepaid loan.</span></div> <div id="xdx_895_ecef--RiskTextBlock_hcef--RiskAxis__custom--ReinvestmentRiskMember_z9luSCDFf9uh" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Reinvestment Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">from matured, traded or called instruments at market interest rates that are below the Fund’s portfolio’s current earnings rate. A decline </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">in income could affect the common shares’ market price, level of distributions or the overall return of the Fund.</span></div> <div id="xdx_89F_ecef--RiskTextBlock_hcef--RiskAxis__custom--RisksAssoicataedWithInvestmentsInDistressedIssuersMember_zJC5tzcSfIMg" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Risks Associated with Investments in Distressed Issuers.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The Fund may invest in instruments of distressed issuers, including firms </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">that have defaulted on their debt obligations and/or filed for bankruptcy protection.  Investing in such investments involves a far </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">greater level of risk than investing in issuers whose debt obligations are being met and whose debt trades at or close to its “par” value. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">These investments are highly speculative with respect to the issuer’s ability to continue to make interest payments and/or to pay its </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">principal obligations in full; can be very difficult to properly value, making them susceptible to a high degree of price volatility and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">rendering them less liquid than performing debt obligations; and, for issuers involved in a bankruptcy proceeding, can be subject to a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">high degree of uncertainty with regard to both the timing and the amount of the ultimate settlement.</span></div> <div id="xdx_898_ecef--RiskTextBlock_hcef--RiskAxis__custom--SecondLienLoanRiskMember_z3MJWysyixk2" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Second Lien Loan Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> A second lien loan may have a claim on the same collateral pool as the first lien or it may be secured by a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">separate set of assets. Second lien loans are typically secured by a second priority security interest or lien on specified collateral </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">securing the borrower’s obligation under the interest. Because second lien loans are second to first lien loans, they present a greater </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">degree of investment risk. Specifically, these loans are subject to the additional risk that the cash flow of the borrower and property </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">securing the loan may be insufficient to meet scheduled payments after giving effect to those loans with a higher priority. In addition, </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loans that have a lower than first lien priority on collateral of the borrower generally have greater price volatility than those loans with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">a higher priority and may be less liquid.</span></div> <div id="xdx_89E_ecef--RiskTextBlock_hcef--RiskAxis__custom--SeniorLoanRiskMember_zfRstKunku23" style="line-height: 11.5pt; text-align: left"><span style="font: bold 10pt Times New Roman; color: #000000">Senior Loan Risk. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The Fund invests in senior loans and therefore is subject to the risks associated therewith.  Investments in senior </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loans are subject to the same risks as investments in other types of debt securities, including credit risk, interest rate risk, liquidity risk </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and valuation risk (which may be heightened because of the limited public information available regarding senior loans and because </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions).  Further, no </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">active trading market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event of </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the need to sell a senior loan and which may make it difficult to value senior loans.  Senior loans may not be considered “securities” </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and the Fund may not be entitled to rely on the anti-fraud protections of the federal securities laws.</span></div> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">In the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">experience a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">decline in the net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">acquiring a participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">by specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists of stock </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively illiquid, and/or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation of the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled interest </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or principal, and the collateral may not be readily liquidated. The senior loan market has seen a significant increase in loans with </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">weaker lender protections including, but not limited to, limited financial maintenance covenants or, in some cases, no financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintenance covenants (i.e., “covenant-lite loans”) that would typically be included in a traditional loan agreement and general </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">weakening of other restrictive covenants applicable to the borrower such as limitations on incurrence of additional debt, restrictions on </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">payments of junior debt or restrictions on dividends and distributions. Weaker lender protections such as the absence of financial </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">maintenance covenants in a loan agreement and the inclusion of “borrower-favorable” terms may impact recovery values and/or </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">trading levels of senior loans in the future. The absence of financial maintenance covenants in a loan agreement generally means that </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">the lender may not be able to declare a default if financial performance deteriorates. This may hinder the Fund’s ability to reprice </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">credit risk associated with a particular borrower and reduce the Fund’s ability to restructure a problematic loan and mitigate potential </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">loss. As a result, the Fund’s exposure to losses on investments in senior loans may be increased, especially during a downturn in the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">credit cycle or changes in market or economic conditions.</span></div> <div id="xdx_893_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationRiskMember_zGjfDV8cNVs1" style="margin-top: 8pt"><span style="font: bold 10pt Times New Roman; color: #000000">Valuation Risk.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> The valuation of senior loans may carry more risk than that of common stock. Because the secondary market for </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">senior loans is limited, it may be difficult to value the loans held by the Fund.  Market quotations may not be readily available for some </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">senior loans and valuation may require more research than for liquid securities. In addition, elements of judgment may play a greater </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">role in the valuation of senior loans than for securities with a secondary market, because there is less reliable objective data available.  </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">These difficulties may lead to inaccurate asset pricing.</span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; line-height: 11.5pt"> </span><span style="color: #000000; font-family: Times New Roman; font-size: 1pt"> </span></div> <div id="xdx_80D_ecef--EffectsOfLeverageTextBlock_zVAIfxaP94Fh" style="margin-top: 15pt"><span style="font: bold 10pt Times New Roman; color: #000000">Effects of Leverage</span></div> <div style="line-height: 11.5pt; margin-top: 3.5pt; text-align: left"> <div style="margin-top: 3pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The aggregate principal amount of borrowings under the credit agreement (the “Credit Agreement”) with The Toronto-Dominion </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Bank, New York Branch represented approximately 2.66% of Managed Assets as of May 31, 2026. Asset coverage with respect to the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">borrowings was 3759.43% as of May 31, 2026 and the Fund had $113,000,000 of unutilized funds available for borrowing under the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Credit Agreement as of that date. As of May 31, 2026, the maximum commitment amount of the Credit Agreement was $120,000,000. </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">As of May 31, 2026, the approximate average annual interest and fee rate was 11.13%.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Assuming that the Fund’s leverage costs remain as described above (at an assumed average annual cost of <span id="xdx_908_ecef--AnnualInterestRatePercent_pp4p2_uRatio_c20250531__20260531_zimJF4DFtte3">2.66</span>%), the annual return </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">that the Fund’s portfolio must experience (net of expenses) in order to cover its leverage costs would be <span id="xdx_90D_ecef--AnnualCoverageReturnRatePercent_pp4p2_uRatio_c20250531__20260531_zjXFDNFwUJEg">0.30</span>%.</span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div id="xdx_89C_ecef--EffectsOfLeveragePurposeTextBlock_zveTU4J0OLl1" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The following table is furnished in response to requirements of the Securities and Exchange Commission (“SEC”). It is designed to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">illustrate the effect of leverage on Common Share total return, assuming investment portfolio total returns (comprised of income and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changes in the value of securities held in the Fund’s portfolio) of (10%), (5%), 0%, 5% and 10%. These assumed investment portfolio </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">returns are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">experienced by the Fund.</span></div> <div><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> </div> <div style="line-height: 11.5pt; margin-top: 8.5pt; text-align: left"> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The table further assumes leverage representing 2.66% of the Fund’s Managed Assets, net of expenses, and an annual leverage interest </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and fee rate of 11.13%.</span><span style="color: #000000; font-family: Times New Roman; font-size: 1pt"> </span></div> <div id="xdx_8AE_zxsZUPFvPmW2" style="margin-top: 8pt"> </div> </div> <div style="clear: both"> </div> <div style="float: left; margin-bottom: 5pt; width: 100%"> </div> <hr style="border-style: none; margin: 40pt 0.25pt 0.25pt; clear: both"/> <span id="xx_07f9dc3d-40a6-4e36-ae78-0188c886026d_IOPIPPR-TOCFundInvestmentObjectivesPIPandPRisks-10_8"></span> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="clear: both"> </div> <div style="margin-top: 0pt"> <table cellpadding="0" cellspacing="0" style="empty-cells: show; width: 540pt"> <tr style="height: 22pt"> <td style="vertical-align: bottom; width: 300pt"> <div style="line-height: 11pt; text-align: left"> <div style="margin-right: 3pt; text-align: left; white-space: nowrap"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt">Assumed Portfolio Total Return (Net of Expenses)</span></div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 27.83pt"> <div style="display: flex; white-space: nowrap; width: 27.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 27.83pt">-10</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-5</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">0</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt">5</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 1.5pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt">10</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> </tr> <tr style="height: 11pt"> <td style="background-color: azure; vertical-align: bottom; width: 300pt"> <div style="line-height: 11pt; text-align: left"> <div style="margin-right: 3pt; text-align: left; white-space: nowrap"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt">Common Share Total Return</span></div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 27.83pt"> <div style="display: flex; white-space: nowrap; width: 27.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 27.83pt">-<span id="xdx_903_ecef--ReturnAtMinusTenPercent_iN_pp4p2_di_uRatio_c20250531__20260531_z2dNuWr5wTv6">10.58</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-<span id="xdx_90A_ecef--ReturnAtMinusFivePercent_iN_pp4p2_di_uRatio_c20250531__20260531_zoPLpK9mUEcg">5.44</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-<span id="xdx_90C_ecef--ReturnAtZeroPercent_iN_pp4p2_di_uRatio_c20250531__20260531_zkvxA1dz9QVe">0.30</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt"><span id="xdx_90E_ecef--ReturnAtPlusFivePercent_pp4p2_uRatio_c20250531__20260531_z2wjtaoEZuUi">4.83</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 1.5pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt"><span id="xdx_90B_ecef--ReturnAtPlusTenPercent_pp4p2_uRatio_c20250531__20260531_zkk3LFKnUuzb">9.97</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> </tr> </table> </div> <div id="xdx_8A0_zNKn8RxZrbta" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">Common share total return is composed of two elements: the common share dividends paid by the Fund (the amount of which is </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">largely determined by the net investment income of the Fund after paying dividends or interest on its leverage instruments) and gains </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">or losses on the value of the securities the Fund owns. As required by SEC rules, the table above assumes that the Fund is more likely </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0% the Fund must assume that the </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">interest it receives on its debt security investments is entirely offset by losses in the value of those investments.</span></div> 0.0266 0.0030 <div id="xdx_89C_ecef--EffectsOfLeveragePurposeTextBlock_zveTU4J0OLl1" style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The following table is furnished in response to requirements of the Securities and Exchange Commission (“SEC”). It is designed to </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">illustrate the effect of leverage on Common Share total return, assuming investment portfolio total returns (comprised of income and </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">changes in the value of securities held in the Fund’s portfolio) of (10%), (5%), 0%, 5% and 10%. These assumed investment portfolio </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">returns are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">experienced by the Fund.</span></div> <div><span style="color: #000000; font-family: Times New Roman; font-size: 10pt"> </span></div> <div style="margin-top: 8pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">The table further assumes leverage representing 2.66% of the Fund’s Managed Assets, net of expenses, and an annual leverage interest </span><span style="color: #000000; font-family: Times New Roman; font-size: 10pt">and fee rate of 11.13%.</span><span style="color: #000000; font-family: Times New Roman; font-size: 1pt"> </span></div> <div id="xdx_89D_ecef--EffectsOfLeverageTableTextBlock_znGZCnRw957b" style="margin-top: 2pt"><span style="font: bold 10pt/10pt Times New Roman; color: #000000"> </span></div> <div style="clear: both"> </div> <div style="margin-top: 0pt"> <table cellpadding="0" cellspacing="0" style="empty-cells: show; width: 540pt"> <tr style="height: 22pt"> <td style="vertical-align: bottom; width: 300pt"> <div style="line-height: 11pt; text-align: left"> <div style="margin-right: 3pt; text-align: left; white-space: nowrap"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt">Assumed Portfolio Total Return (Net of Expenses)</span></div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 27.83pt"> <div style="display: flex; white-space: nowrap; width: 27.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 27.83pt">-10</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-5</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">0</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt">5</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 1.5pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt">10</span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> </tr> <tr style="height: 11pt"> <td style="background-color: azure; vertical-align: bottom; width: 300pt"> <div style="line-height: 11pt; text-align: left"> <div style="margin-right: 3pt; text-align: left; white-space: nowrap"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt">Common Share Total Return</span></div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 27.83pt"> <div style="display: flex; white-space: nowrap; width: 27.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 27.83pt">-<span id="xdx_903_ecef--ReturnAtMinusTenPercent_iN_pp4p2_di_uRatio_c20250531__20260531_z2dNuWr5wTv6">10.58</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-<span id="xdx_90A_ecef--ReturnAtMinusFivePercent_iN_pp4p2_di_uRatio_c20250531__20260531_zoPLpK9mUEcg">5.44</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 22.83pt"> <div style="display: flex; white-space: nowrap; width: 22.83pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 22.83pt">-<span id="xdx_90C_ecef--ReturnAtZeroPercent_iN_pp4p2_di_uRatio_c20250531__20260531_zkvxA1dz9QVe">0.30</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 3pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt"><span id="xdx_90E_ecef--ReturnAtPlusFivePercent_pp4p2_uRatio_c20250531__20260531_z2wjtaoEZuUi">4.83</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> <td style="background-color: azure; vertical-align: bottom; white-space: nowrap; width: 48pt"> <div style="line-height: 11pt; margin-left: 3pt; margin-right: 1.5pt; text-align: right; width: 42pt"> <div style="margin: auto; display: flex; width: 19.5pt"> <div style="display: flex; white-space: nowrap; width: 19.5pt"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: 19.5pt"><span id="xdx_90B_ecef--ReturnAtPlusTenPercent_pp4p2_uRatio_c20250531__20260531_zkk3LFKnUuzb">9.97</span></span></div> <div style="display: flex"><span style="color: #000000; font-family: Times New Roman; font-size: 10pt; width: auto">%</span></div> </div> </div> </td> </tr> </table> </div> -0.1058 -0.0544 -0.0030 0.0483 0.0997