UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-23763
First Trust Real Assets Fund
(Exact name of registrant as specified in charter)
c/o UMB Fund Services, Inc.
235 West Galena Street
Milwaukee, WI 53212
(Address of principal executive offices) (Zip code)
Ann Maurer
235 West Galena Street
Milwaukee, WI 53212
(Name and address of agent for service)
registrant's telephone number, including area code: (414) 299-2217
Date of fiscal year end: March 31
Date of reporting period: September 30, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
(a) | The Report to Shareholders is attached herewith. |
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CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2023 (Unaudited)
| Principal Amount | | | | | | Value | | ||||||
| | | | ASSET-BACKED SECURITIES – 1.9% | | |||||||||
| | $ | 119,369 | | | | Home Partners of America 2021-2 Trust Series 2021-2, Class F, 3.799%, 12/17/20261 | | | | $ | 102,053 | | |
| | | 165,124 | | | | Pretium Mortgage Credit Partners LLC Series 2022-NPL1, Class A1, 2.981%, 1/25/20521,2,3 | | | | | 154,255 | | |
| | | 190,165 | | | | PRPM 2021-3 LLC Series 2021-3, Class A1, 1.867%, 4/25/20261,2,3 | | | | | 179,295 | | |
| | | | | | | TOTAL ASSET-BACKED SECURITIES (Cost $443,708) | | | | | 435,603 | | |
| Number of Shares | | | | | | ||||||||
| | | | CLOSED-END FUNDS – 10.4% | | | | | | | | |||
| | | 236,983 | | | | Pender Real Estate Credit Fund – Class I | | | | | 2,376,936 | | |
| | | | | | | TOTAL CLOSED-END FUNDS (Cost $2,369,827) | | | | | 2,376,936 | | |
| Principal Amount | | | | | | | | | | | |||
| | | | COLLATERALIZED LOAN OBLIGATIONS – 0.7% | | |||||||||
| | | 150,000 | | | | Bryant Park Commercial Real Estate Partners I LP Series 2022-FL2, Class C, 9.831% (1-Month Term SOFR+450 basis points), 1/16/20371,2,4 | | | | | 149,219 | | |
| | | | | | | TOTAL COLLATERALIZED LOAN OBLIGATIONS (Cost $148,500) | | | | | 149,219 | | |
| | | | COLLATERALIZED MORTGAGE OBLIGATIONS – 14.6% | | |||||||||
| | | 171,882 | | | | Freddie Mac STACR REMIC Trust 2022-HQA3 Series 2022-HQA3, Class M1A, 7.615% (30-Day SOFR Average+230 basis points), 8/25/20421,2,4 | | | | | 174,683 | | |
| | | 250,000 | | | | Freddie Mac Structured Agency Credit Risk Debt Notes Series 2022-HQA3, Class M2, 10.665% (30-Day SOFR Average+535 basis points), 8/25/20421,2,4 | | | | | 266,426 | | |
| | | 200,000 | | | | Series 2023-HQA2, Class M1B, 8.665% (30-Day SOFR Average+335 basis points), 6/25/20431,2,4 | | | | | 205,101 | | |
| | | 250,000 | | | | GCAT 2021-NQM6 Trust Series 2021-NQM6, Class M1, 3.414%, 8/25/20661,2,5 | | | | | 162,353 | | |
| | | 182,336 | | | | GCAT 2022-NQM4 Trust Series 2022-NQM4, Class A3, 5.730%, 8/25/20671,2,3 | | | | | 176,077 | | |
| | | 227,000 | | | | GS Mortgage-Backed Securities Trust 2023-CCM1 Series 2023-CCM1, Class B1, 7.525%, 8/25/20532,5 | | | | | 216,564 | | |
| | | 244,511 | | | | GS Mortgage-Backed Securities Trust 2023-PJ4 Series 2023-PJ4, Class A15, 6.000%, 1/25/20541,2,5 | | | | | 242,586 | | |
| | | 200,000 | | | | Home RE Ltd. Series 2019-1, Class M2, 8.684% (1-Month USD Libor+325 basis points), 5/25/20291,2,4 | | | | | 204,103 | | |
CONSOLIDATED SCHEDULE OF INVESTMENTS — Continued
As of September 30, 2023 (Unaudited)
| Principal Amount | | | | | | Value | | ||||||
| | | | COLLATERALIZED MORTGAGE OBLIGATIONS (Continued) | | |||||||||
| | $ | 176,546 | | | | JP Morgan Mortgage Trust 2016-4 Series 2016-4, Class B3, 3.814%, 10/25/20461,2,5 | | | | $ | 154,471 | | |
| | | 120,700 | | | | Series 2016-4, Class B4, 3.814%, 10/25/20461,2,5 | | | | | 74,522 | | |
| | | 164,947 | | | | Series 2016-4, Class B5, 3.814%, 10/25/20461,2,5 | | | | | 85,299 | | |
| | | 250,000 | | | | New Residential Mortgage Loan Trust Series 2022-NQM1, Class M1, 3.601%, 4/25/20611,2,5 | | | | | 157,426 | | |
| | | 250,000 | | | | Radnor RE 2021-1 Ltd. Series 2021-1, Class M2, 8.465% (30-Day SOFR Average+315 basis points), 12/27/20331,2,4 | | | | | 253,102 | | |
| | | 200,000 | | | | Radnor RE 2022-1 Ltd. Series 2022-1, Class M1B, 12.065% (30-Day SOFR Average+675 basis points), 9/25/20321,2,4 | | | | | 215,475 | | |
| | | 250,000 | | | | Saluda Grade Alternative Mortgage Trust 2023-FIG3 Series 2023-FIG3, Class A, 7.067%, 8/25/20532,5 | | | | | 251,816 | | |
| | | 250,000 | | | | Series 2023-FIG3, Class B, 7.712%, 8/25/20532 | | | | | 252,140 | | |
| | | 200,000 | | | | Verus Securitization Trust 2021-1 Series 2021-1, Class M1, 1.968%, 1/25/20661,2,5 | | | | | 128,108 | | |
| | | 200,000 | | | | Verus Securitization Trust 2021-7 Series 2021-7, Class B1, 4.143%, 10/25/20661,2,5 | | | | | 126,933 | | |
| | | | | | | TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $3,511,180) | | | | | 3,347,185 | | |
| Number of Shares | | | | | | | | | | | |||
| | | | PRIVATE INVESTMENT FUNDS – 11.6% | | |||||||||
| | | 465,543 | | | | Cbre U.S. Core Partners, LP | | | | | 822,685 | | |
| | | N/A6 | | | | Hillpointe Workforce Partnership IV, LP7 | | | | | 214,907 | | |
| | | N/A6 | | | | Nuveen Real Estate U.S. Cities Multifamily Fund LP8 | | | | | 174,233 | | |
| | | N/A6 | | | | Oak Street Real Estate Capital Net Lease Property Fund, LP | | | | | 1,087,237 | | |
| | | N/A6 | | | | Wynwood BN, LLC | | | | | 343,627 | | |
| | | | | | | TOTAL PRIVATE INVESTMENT FUNDS (Cost $2,817,450) | | | | | 2,642,689 | | |
| | | | REAL ESTATE INVESTMENT TRUSTS – 38.4% | | |||||||||
| | | 65,424 | | | | Bailard Real Estate Investment Trust LP8 | | | | | 2,210,008 | | |
| | | N/A6 | | | | Cire Real Estate Investment Trust, Inc. | | | | | 1,308,795 | | |
| | | 71,592 | | | | Invesco Real Estate Income Trust, Inc.8 | | | | | 2,111,199 | | |
| | | 107,365 | | | | Jones Lang LaSalle Income Property Trust, Inc. – Class M-I | | | | | 1,406,479 | | |
| | | 63,139 | | | | RREEF Property Trust, Inc. – Class D | | | | | 897,840 | | |
| | | 34,445 | | | | Starwood Real Estate Income Trust, Inc.8 | | | | | 850,267 | | |
| | | | | | | TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $9,596,655) | | | | | 8,784,588 | | |
CONSOLIDATED SCHEDULE OF INVESTMENTS — Continued
As of September 30, 2023 (Unaudited)
| Number of Shares | | | | | | Value | | ||||||
| | | | SHORT-TERM INVESTMENTS – 20.6% | | |||||||||
| | $ | 4,714,758 | | | | Morgan Stanley Institutional Liquidity Fund – Government Portfolio – Institutional Class, 5.27%9 | | | | $ | 4,714,758 | | |
| | | | | | | TOTAL SHORT-TERM INVESTMENTS (Cost $4,714,758) | | | | | 4,714,758 | | |
| | | | | | | TOTAL INVESTMENTS – 98.2% (Cost $23,602,078) | | | | | 22,450,978 | | |
| | | | | | | Assets in Excess of Other Liabilities – 1.8% | | | | | 414,258 | | |
| | | | | | | TOTAL NET ASSETS – 100.0% | | | | $ | 22,865,236 | | |
Securities With Restrictions on Redemptions | | | Redemptions Permitted | | | Redemption Notice Period | | | Cost | | | Fair Value | | | Original Acquisition Date | | ||||||
Bailard Real Estate Investment Trust, Inc.1 | | | Quarterly | | | 30 Days | | | | $ | 2,350,000 | | | | | $ | 2,210,008 | | | | 6/29/2022 | |
Cbre U.S. Core Partners, LP1 | | | Quarterly | | | 60 Days | | | | | 950,000 | | | | | | 822,685 | | | | 9/30/2022 | |
Cire Real Estate Investment Trust, Inc. | | | Quarterly | | | 90 Days | | | | | 1,300,000 | | | | | | 1,308,795 | | | | 3/31/2023 | |
Hillpointe Workforce Partnership IV, LP1 | | | Not Permitted | | | N/A | | | | | 220,000 | | | | | | 214,907 | | | | 3/9/2023 | |
Invesco Real Estate Income Trust, Inc. | | | Monthly | | | 30 Days | | | | | 2,300,000 | | | | | | 2,111,199 | | | | 4/29/2022 | |
Nuveen Real Estate U.S. Cities Multifamily Fund LP1 | | | Quarterly | | | 45 Days | | | | | 212,450 | | | | | | 174,233 | | | | 10/3/2022 | |
Oak Street Real Estate Capital Net Lease Property Fund, LP1 | | | Quarterly | | | 60 Days | | | | | 1,085,000 | | | | | | 1,087,237 | | | | 10/31/2022 | |
Pender Real Estate Credit Fund – Class I | | | Quarterly2 | | | N/A | | | | | 2,369,826 | | | | | | 2,376,936 | | | | 5/2/2022 | |
Starwood Real Estate Income Trust, Inc. | | | Monthly | | | 2 Days | | | | | 946,655 | | | | | | 850,267 | | | | 4/29/2022 | |
Wynwood BN, LLC1 | | | Not permitted | | | N/A | | | | | 350,000 | | | | | | 343,627 | | | | 1/26/2023 | |
Totals: | | | | | | | | | | $ | 12,083,931 | | | | | $ | 11,499,894 | | | | | |
CONSOLIDATED SUMMARY OF INVESTMENTS
As of September 30, 2023 (Unaudited)
Security Type/Sector | | | Percent of Total Net Assets | | |||
Asset-Backed Securities | | | | | 1.9% | | |
Closed-End Funds | | | | | 10.4% | | |
Collateralized Loan Obligations | | | | | 0.7% | | |
Collateralized Mortgage Obligations | | | | | 14.6% | | |
Private Investment Funds | | | | | 11.6% | | |
Real Estate Investment Trusts | | | | | 38.4% | | |
Short-Term Investments | | | | | 20.6% | | |
Total Investments | | | | | 98.2% | | |
Other Assets in Excess of Liabilities | | | | | 1.8% | | |
Total Net Assets | | | | | 100.0% | | |
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
As of September 30, 2023 (Unaudited)
| Assets: | | | | | | | |
| Investments, at fair value (cost $23,602,078) | | | | $ | 22,450,978 | | |
| Cash | | | | | 211,519 | | |
| Receivables: | | | | | | | |
| Due from Adviser | | | | | 171,353 | | |
| Dividends and interest | | | | | 65,678 | | |
| Prepaid expenses | | | | | 46,658 | | |
| Total assets | | | | | 22,946,186 | | |
| Liabilities: | | | | | | | |
| Payables: | | | | | | | |
| Auditing fees | | | | | 16,900 | | |
| Distribution fees – Class I (Note 3) | | | | | 16,988 | | |
| Shareholder reporting fees | | | | | 5,598 | | |
| Fund services expense | | | | | 3,945 | | |
| Tax service fees | | | | | 21,750 | | |
| Legal | | | | | 15,769 | | |
| Total liabilities | | | | | 80,950 | | |
| Net Assets | | | | $ | 22,865,236 | | |
| Components of Net Assets | | | | | | | |
| Paid-in Capital (par value of $0.01 per share with an unlimited number of shares authorized) | | | | $ | 23,940,496 | | |
| Total accumulated deficit | | | | | (1,075,260) | | |
| Net Assets | | | | $ | 22,865,236 | | |
| Class I Shares: | | | | | | | |
| Net assets applicable to shares outstanding | | | | $ | 22,865,236 | | |
| Shares of beneficial interest issued and outstanding | | | | | 2,403,356 | | |
| Net asset value, price per share | | | | $ | 9.51 | | |
CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended September 30, 2023 (Unaudited)
| Investment Income: | | | | | | | |
| Dividends | | | | $ | 345,843 | | |
| Interest | | | | | 234,395 | | |
| Total investment income | | | | | 580,238 | | |
| Expenses: | | | | | | | |
| Advisory fees | | | | | 152,187 | | |
| Legal fees | | | | | 54,435 | | |
| Registration fees | | | | | 23,501 | | |
| Trustees’ fees and expenses | | | | | 22,500 | | |
| Auditing fees | | | | | 20,000 | | |
| Offering costs (see Note 2) | | | | | 14,690 | | |
| Shareholder reporting fees | | | | | 13,601 | | |
| Distribution fees – Class I (Note 3) | | | | | 12,917 | | |
| Fund services expense | | | | | 10,583 | | |
| Chief Compliance Officer fees | | | | | 10,548 | | |
| Tax services | | | | | 7,250 | | |
| Insurance fees | | | | | 4,456 | | |
| Miscellaneous | | | | | 500 | | |
| Total expenses | | | | | 347,168 | | |
| Advisory fees waived | | | | | (152,187) | | |
| Other expenses absorbed | | | | | (8,024) | | |
| Net expenses | | | | | 186,957 | | |
| Net investment income | | | | | 393,281 | | |
| Realized and Unrealized loss: | | | | | | | |
| Net realized loss on investments | | | | | (47,614) | | |
| Net change in unrealized appreciation/depreciation on investments | | | | | (244,022) | | |
| Net realized and unrealized loss on investments | | | | | (291,636) | | |
| Net Increase in Net Assets from Operations | | | | $ | 101,645 | | |
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
| | | For the Six Months Ended September 30, 2023 (Unaudited) | | | For the Period May 2, 20221 Through March 31, 2023 | | ||||||
Increase (Decrease) in Net Assets From: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income | | | | $ | 393,281 | | | | | $ | 415,811 | | |
Net realized loss on investments | | | | | (47,614) | | | | | | (3,968) | | |
Net change in unrealized appreciation/depreciation on investments | | | | | (244,022) | | | | | | (907,077) | | |
Net increase (decrease) resulting from operations | | | | | 101,645 | | | | | | (495,234) | | |
Distributions to Shareholders | | | | | (572,093) | | | | | | (198,105) | | |
Total distributions to shareholders | | | | | (572,093) | | | | | | (198,105) | | |
Capital Transactions: | | | | | | | | | | | | | |
Net proceeds from shares sold: | | | | | | | | | | | | | |
Class I | | | | | 1,755,898 | | | | | | 24,210,580 | | |
Reinvestment of distributions: | | | | | | | | | | | | | |
Class I | | | | | 22,187 | | | | | | 9,027 | | |
Cost of shares repurchased: | | | | | | | | | | | | | |
Class I | | | | | (1,282,418) | | | | | | (786,251) | | |
Net increase resulting from capital transactions | | | | | 495,667 | | | | | | 23,433,356 | | |
Total increase in net assets | | | | | 25,219 | | | | | | 22,740,017 | | |
Net Assets | | | | | | | | | | | | | |
Beginning of period | | | | | 22,840,017 | | | | | | 100,0002 | | |
End of period | | | | $ | 22,865,236 | | | | | $ | 22,840,017 | | |
Capital Share Transactions: | | | | | | | | | | | | | |
Shares sold: | | | | | | | | | | | | | |
Class I | | | | | 183,929 | | | | | | 2,430,026 | | |
Shares reinvested: | | | | | | | | | | | | | |
Class I | | | | | 2,325 | | | | | | 928 | | |
Shares repurchased: | | | | | | | | | | | | | |
Class I | | | | | (134,111) | | | | | | (79,741) | | |
Net increase in capital share transactions | | | | | 52,143 | | | | | | 2,351,213 | | |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended September 30, 2023 (Unaudited)
| Increase (Decrease) in Cash | | | | | | | |
| Cash flows provided by (used for) operating activities: | | | | | | | |
| Net increase in net assets resulting from operations | | | | $ | 101,645 | | |
| Adjustments to reconcile net decrease in net assets from operations to net cash used for operating activities: | | | | | | | |
| Purchases of long-term portfolio investments | | | | | (3,686,006) | | |
| Sales of long-term portfolio investments | | | | | 3,360,690 | | |
| Purchase/Sales of short-term investments, net | | | | | (217,308) | | |
| Increase in due from adviser | | | | | (16,489) | | |
| Decrease in dividends and interest | | | | | 16,678 | | |
| Decrease in deferred organizational and offering costs (see Note 2) | | | | | 14,689 | | |
| Increase in prepaid expenses | | | | | (41,609) | | |
| Decrease in auditing fees | | | | | (3,100) | | |
| Increase in distribution fees – Class I (Note 3) | | | | | 2,845 | | |
| Increase in shareholder reporting fees | | | | | 3,618 | | |
| Decrease in fund services expense | | | | | (1,583) | | |
| Increase in tax service fees | | | | | 7,250 | | |
| Increase in legal fees | | | | | 15,769 | | |
| Decrease in accrued other expenses | | | | | (2,592) | | |
| Net amortization on investments | | | | | (12,472) | | |
| Net gain loss on investments | | | | | 42,854 | | |
| Net change in unrealized appreciation/depreciation on investments | | | | | 244,022 | | |
| Net cash used for operating activities | | | | | (171,099) | | |
| Cash flows provided by (used for) financing activities: | | | | | | | |
| Proceeds from shares sold | | | | | 1,755,898 | | |
| Redemption of shares | | | | | (1,282,418) | | |
| Dividends paid to shareholders, net of reinvestments | | | | | (549,906) | | |
| Net cash used for financing activities | | | | | (76,426) | | |
| Net decrease in cash | | | | | (247,525) | | |
| Cash: | | | | | | | |
| Beginning of period | | | | | 459,044 | | |
| End of period | | | | $ | 211,519 | | |
| Supplemental disclosure of non-cash activities: | | | | | | | |
| Reinvested dividends | | | | $ | 22,187 | | |
CONSOLIDATED FINANCIAL HIGHLIGHTS
Class I
For a capital share outstanding throughout each period.
| | | For the Six Months Ended September 30, 2023 (Unaudited) | | | For the Period May 2, 2022* Through March 31, 2023 | | ||||||
Net asset value, beginning of period | | | | $ | 9.71 | | | | | $ | 10.00 | | |
Income from Investment Operations: | | | | | | | | | | | | | |
Net investment income1 | | | | | 0.17 | | | | | | 0.25 | | |
Net realized and unrealized loss on investments | | | | | (0.12) | | | | | | (0.46) | | |
Total from investment operations | | | | | 0.04 | | | | | | (0.20) | | |
Less Distributions: | | | | | | | | | | | | | |
From net investment income | | | | | (0.24) | | | | | | (0.09) | | |
From net realized gain | | | | | — | | | | | | (0.00)2 | | |
Total from distributions | | | | | (0.24) | | | | | | (0.09) | | |
Net asset value, end of period | | | | $ | 9.51 | | | | | $ | 9.71 | | |
Total return3 | | | | | 0.44% | | | | | | (2.03)% | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | |
Net assets, end of period (in thousands) | | | | $ | 22,865 | | | | | $ | 22,840 | | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | |
Before fees waived and expenses absorbed4 | | | | | 3.07% | | | | | | 4.73% | | |
After fees waived and expenses absorbed4 | | | | | 1.65% | | | | | | 1.65% | | |
Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | |
Before fees waived and expenses absorbed4 | | | | | 2.06% | | | | | | (0.26)% | | |
After fees waived and expenses absorbed4 | | | | | 3.48% | | | | | | 2.81% | | |
Portfolio turnover rate3 | | | | | 19% | | | | | | 2% | | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
| 2026 | | | | $ | 456,465 | | |
| 2027 | | | | | 160,211 | | |
| Total | | | | $ | 616,676 | | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
| Cost of investments | | | | $ | 23,124,208 | | |
| Gross unrealized appreciation | | | | $ | 12,974 | | |
| Gross unrealized depreciation | | | | | (954,424) | | |
| Net unrealized depreciation on investments | | | | $ | (941,450) | | |
| Increase (Decrease) | | |||
| Paid-in Capital | | | Total Distributable Earnings | |
| $ (88,527) | | | $ 88,527 | |
| Undistributed ordinary income | | | | $ | 321,775 | | |
| Undistributed long-term capital gains | | | | | 14,863 | | |
| Tax accumulated earnings | | | | | 336,638 | | |
| Accumulated capital and other losses | | | | | — | | |
| Unrealized appreciation on investments | | | | | (941,450) | | |
| Total accumulated earnings | | | | $ | (604,812) | | |
Distribution paid from: | | | 2023 | | |||
Ordinary income | | | | $ | 195,938 | | |
Net long-term capital gains | | | | | 2,167 | | |
Total taxable distributions | | | | $ | 198,105 | | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
| | | | Repurchase Offer | | | Repurchase Offer | |
| Commencement Date | | | March 22, 2023 | | | June 21, 2023 | |
| Repurchase Request Date | | | April 21, 2023 | | | July 21, 2023 | |
| Repurchase Pricing Date | | | April 21, 2023 | | | July 21, 2023 | |
| Net Asset Value as of Repurchase Pricing Date | | | | | | | |
| Class I Shares | | | $9.61 | | | $9.51 | |
| Amount Repurchased | | | | | | | |
| Class I Shares | | | $674,701 | | | $607,718 | |
| Percentage of Outstanding Shares Repurchased | | | | | | | |
| Class I Shares | | | 2.97% | | | 2.64% | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
| | | Level 1 | | | Level 2 | | | Level 3* | | | Total | | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | | | | | | | | | | | | | |
Asset-Backed Securities | | | | $ | — | | | | | $ | 435,603 | | | | | $ | — | | | | | $ | 435,603 | | |
Closed-End Funds | | | | | 2,376,936 | | | | | | — | | | | | | — | | | | | | 2,376,936 | | |
Collateralized Loan Obligations | | | | | — | | | | | | 149,219 | | | | | | — | | | | | | 149,219 | | |
Collateralized Mortgage Obligations | | | | | — | | | | | | 3,347,185 | | | | | | — | | | | | | 3,347,185 | | |
Private Investment Funds | | | | | — | | | | | | — | | | | | | 174,233 | | | | | | 174,233 | | |
Real Estate Investment Trusts | | | | | 2,304,319 | | | | | | — | | | | | | 5,171,474 | | | | | | 7,475,793 | | |
Short-Term Investments | | | | | 4,714,758 | | | | | | — | | | | | | — | | | | | | 4,714,758 | | |
Subtotal . | | | | $ | 9,396,013 | | | | | $ | 3,932,007 | | | | | $ | 5,345,707 | | | | | $ | 18,673,727 | | |
Private Investment Funds . | | | | | | | | | | | | | | | | | | | | | | | 2,468,456 | | |
Real Estate Investment Trusts | | | | | | | | | | | | | | | | | | | | | | | 1,308,795 | | |
Total Investments . | | | | | | | | | | | | | | | | | | | | | | $ | 22,450,978 | | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
| | | Private Investment Funds | | | Real Estate Investment Trusts | | ||||||
Balance as of March 31, 2023 | | | | $ | 201,829 | | | | | $ | 6,106,231 | | |
Transfers into Level 3 | | | | | — | | | | | | — | | |
Transfers out of Level 3 | | | | | — | | | | | | — | | |
Total gains or losses for the period | | | | | | | | | | | | | |
Included in earnings (or changes in net assets) | | | | | (27,596) | | | | | | (155,241) | | |
Included in other comprehensive income | | | | | — | | | | | | — | | |
Net purchases | | | | | — | | | | | | — | | |
Net sales | | | | | — | | | | | | (779,516) | | |
Balance as of September 30, 2023 | | | | $ | 174,233 | | | | | $ | 5,171,474 | | |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period | | | | $ | (27,596) | | | | | $ | (155,241) | | |
Investments | | | Fair Value | | | Valuation Technique(s) | | | Unobservable Input | | | Range of Input | | |||
Private Investments Funds | | | | $ | 174,233 | | | | Adjusted Net Asset Value | | | Reported net asset/fair value adjustments | | | N/A | |
Real Estate Investment Trusts | | | | $ | 5,171,474 | | | | Adjusted Net Asset Value | | | Reported net asset/fair value adjustments | | | N/A | |
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS — Continued
September 30, 2023 (Unaudited)
FUND INFORMATION
September 30, 2023 (Unaudited)
235 West Galena Street
Milwaukee, WI 53212
Toll Free: (877) 779-1999
| | | | TICKER | | | CUSIP | | ||||||
| First Trust Real Assets Fund – Class I Shares | | | | | FTREX | | | | | | 33742N202 | | |
PRIVACY POLICY
(Unaudited)
| | FACTS | | | | WHAT DOES THE FUND DO WITH YOUR PERSONAL INFORMATION? | | |
| | Why? | | | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | | |
| | What? | | | | The types of personal information we collect and share depend on the product or service you have with us. This information can include: • Social Security number • Account balances • Account transactions • Transaction history • Wire transfer instructions • Checking account information When you are no longer our customer, we continue to share your information as described in this notice. | | |
| | How? | | | | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons funds choose to share; and whether you can limit this sharing. | | |
| | Reasons we can share your personal information | | | | Does the Fund share? | | | | Can you limit this sharing? | | |
| | For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | | | | Yes | | | | No | | |
| | For our marketing purposes – to offer our products and services to you | | | | No | | | | We don’t share | | |
| | For joint marketing with other financial companies | | | | No | | | | We don’t share | | |
| | For our affiliates’ everyday business purposes – information about your transactions and experiences | | | | Yes | | | | No | | |
| | For our affiliates’ everyday business purposes – information about your creditworthiness | | | | No | | | | We don’t share | | |
| | For our affiliates to market to you | | | | No | | | | We don’t share | | |
| | For nonaffiliates to market to you | | | | No | | | | We don’t share | | |
| | Questions? | | | | Call 1-844-440-4450 | | | | | | |
PRIVACY POLICY — Continued
(Unaudited)
| | What we do | | | | | | |
| | How does the Fund protect my personal information? | | | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | | |
| | How does the Fund collect my personal information? | | | | We collect your personal information, for example, when you • Open an account • Provide account information • Give us your contact information • Make a wire transfer • Tell us where to send the money We also collect your information from others, such as credit bureaus, affiliates, or other companies. | | |
| | Why can’t I limit all sharing? | | | | Federal law gives you the right to limit only • Sharing for affiliates’ everyday business purposes-information about your creditworthiness • Affiliates from using your information to market to you • Sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. | | |
| | Definitions | | | | | | |
| | Affiliates | | | | Companies related by common ownership or control. They can be financial and nonfinancial companies. Our affiliates include companies such as Alternative Fund Advisor LLC. | | |
| | Nonaffiliates | | | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. The Fund doesn’t share with nonaffiliates so they can market to you. | | |
| | Joint marketing | | | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. The Fund doesn’t jointly market. | | |
(b) Not applicable.
ITEM 2. CODE OF ETHICS.
Not applicable to semi-annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable. |
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semi-annual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) | Not applicable to semi-annual reports. |
(b) | Not applicable. |
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT COMPANIES.
(a) | Not applicable. |
(b) | Not applicable. |
ITEM 13. EXHIBITS.
(a)(1) Not applicable to semi-annual reports.
(a)(3) Not applicable.
(a)(4) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | First Trust Real Assets Fund |
By (Signature and Title)* | /s/ Michael Peck | |
Michael Peck, President | ||
(Principal Executive Officer) |
Date | December 8, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Michael Peck | |
Michael Peck, President | ||
(Principal Executive Officer) |
Date | December 8, 2023 |
By (Signature and Title)* | /s/ Chad Eisenberg | |
Chad Eisenberg, Treasurer | ||
(Principal Financial Officer) |
Date | December 8, 2023 |
* Print the name and title of each signing officer under his or her signature.