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About First Trust Global Tactical Commodity Strategy Fund
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Inception date
Oct 22, 2013
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
FTGC brought active management to the commodities space. The fund doesn't directly own futures contracts, but gains exposure to commodities through its holdings in a Cayman Islands-based subsidiary which holds futures contracts. The fund can also short futures, hold commodity ETFs, and structured products tied to commodities. Since the fund limits its holding in the subsidiary to 25%, it aims to qualify as a regulated investment company and is structured as a 1940 Act open-ended fund, as opposed to a commodities pool. Overall it doesn't look much like a front-month GSCI benchmark. Its sector biases can swing far from neutral exposure. Its cash-only creation structure makes things simple for larger investors. FTGCs structure means that it intends to be taxed like other equity funds, and does not distribute K-1 forms to its investors.
Classification
What's in the fund
Exposure type
Government
Mutual fund
Agency
Bonds, Cash & Other100.00%
Government48.27%
Mutual fund37.14%
Agency14.60%
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