Investment Objective/Strategy - First Trust Senior Floating Rate 2022 Target Term Fund (the "Fund") is a diversified, closed-end management investment company. The investment objectives of the Fund are to seek a high level of current income and to return $9.85 per Common Share of beneficial interest of the Fund (the original net asset value ("NAV") per Common Share before deducting offering costs of $0.02 per Common Share) to the holders of Common Shares on or about February 1, 2022. The Fund, under normal market conditions, pursues its objectives by primarily investing at least 80% of its Managed Assets in a portfolio of senior secured floating-rate loans of any maturity. "Managed Assets" means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings. There can be no assurance that the Fund's investment objectives will be achieved. Moreover, while it is too soon to determine the ultimate impact the COVID-19 global pandemic will have on FIV, we believe the sharp and sudden economic shock resulting from the unprecedented shut down of significant parts of the US economy has substantially increased the risk of achieving the Fund's goal of returning original NAV at the fund's termination. Achieving this objective is dependent on a number of factors including, but not limited to, the severity of the economic contraction, the level of income earned in the portfolio, default losses experienced in the portfolio, trading losses in the portfolio and the use of leverage during such periods.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.