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| Investment Objective/Strategy -
The First Trust Active Dividend Income Fund is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. It has a secondary objective of capital appreciation. The Fund will seek to achieve its investment objectives by investing at least 80% of its Managed Assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers that the Fund's investment sub-advisor believes offer the potential for attractive income and/or capital appreciation. The Fund does not employ leverage or covered calls to generate income. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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Fund Overview
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| Ticker |
FAV |
| Fund Type |
Equity Income |
| Investment Advisor |
First Trust Advisors L.P. |
| Portfolio Manager/Sub-Advisor |
Aviance Capital Management, LLC |
| Investor Servicing Agent |
BNY Mellon Investment Servicing (US) Inc. |
| CUSIP |
33731L100 |
| Fiscal Year-End |
11/30 |
| Exchange |
NYSE |
| Inception |
9/20/2007 |
| Inception Price |
$20.00 |
| Inception NAV |
$19.10 |
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| Share Price and NAV History (Since Inception) |
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Past performance is not indicative of future results.
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Current Fund Data (as of 7/30/2010)
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| Closing Share Price |
$10.41 |
| Closing NAV |
$9.62 |
| Premium to NAV |
8.21% |
| Total Net Assets |
$74,778,843 |
| Common Shares Outstanding |
7,769,718 |
| Dividend Frequency |
Quarterly |
| Dividend per Share Amt1 |
$0.3200 |
| Distribution Rate2 |
12.30% |
| Daily Volume |
18,064 |
| Average 30-Day Daily Volume |
51,989 |
| Closing Share Price 52-Week High/Low |
$14.73 / $9.75 |
| Closing NAV 52-Week High/Low |
$11.23 / $9.28 |
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Expense Ratios (as of 5/31/2010)
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| Annual Expenses |
Percent of
Net Assets |
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| Management Fees |
1.00% |
| Other Expenses |
0.73% |
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| Total Annual Expenses |
1.73% |
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| Leverage Information
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| The Fund currently has no outstanding leverage. |
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| Cumulative Total Returns
(as of 6/30/2010)3
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| Period |
Share Price (%) |
NAV (%) |
| 3 Months |
-25.58 |
-11.20 |
| 1 Year |
9.11 |
11.32 |
| Year to Date |
-14.34 |
-8.24 |
| Inception to date |
-24.01 |
-26.72 |
| Calendar Year Returns
(as of 12/31/2009)3
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| Period |
Share Price (%) |
NAV (%) |
| 2008 |
-30.03 |
-35.62 |
| 2009 |
45.83 |
21.68 |
| Average Annual Returns
(as of 6/30/2010)3
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| Period |
Share Price (%) |
NAV (%) |
| Inception to date |
-9.41 |
-10.59 |
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Sector* |
Percent (%) |
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Financials |
23.40 |
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Energy |
22.60 |
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Information Technology |
17.60 |
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Industrials |
10.00 |
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Utilities |
8.60 |
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Telecommunication Services |
6.00 |
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Health Care |
4.60 |
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Consumer Staples |
2.80 |
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Materials |
2.50 |
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Consumer Discretionary |
1.90 |
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*As a percent of long-term investments
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Holding* |
Percent (%) |
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Taiwan Semiconductor Manufacturing Co. Ltd. |
5.20 |
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Toronto-Dominion (The) Bank |
3.70 |
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Progress Energy, Inc. |
3.50 |
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Bristol-Myers Squibb Co. |
3.10 |
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Bank of Novia Scotia |
2.70 |
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American Express Co. |
2.60 |
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El Paso Pipeline Partners L.P. |
2.50 |
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Kinder Morgan Energy Partners L.P. |
2.50 |
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PNC Financial Services Group, Inc. |
2.50 |
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Verizon Communications, Inc. |
2.40 |
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*As a percent of long-term investments
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| Footnotes
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| 1 |
Most recent distribution paid or declared through today's date. Subject to change in the future. |
| 2 |
Distribution rates are calculated by annualizing the most recent distribution paid or declaration through today's date and then dividing by the most recent market price. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. The distribution rate may include realized short-term capital gains and/or a return of capital. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end. |
| 3 |
Total return is the combination of reinvested dividend income and reinvested capital gains distributions, at prices obtained by the Dividend Reinvestment Plan, if any, and changes in the NAV and Share Price. The NAV total return does not reflect sales load. Past performance is not indicative of future results. |
| 4 |
Information is based upon trade date plus one recording of security transactions. Therefore, trades on the last day of the period are not reflected. |
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Risk Considerations
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Investment and market risk, management risk, sub-advisor risk, value investing risk, dividend strategy risk, qualified dividend tax risk, equity securities risk, small and medium cap company risk, non-U.S. securities risk, emerging markets risk, preferred stock risk, convertible securities risk, REIT risk, master limited partnership risk, fixed-income securities risk, market discount from net asset value risk, derivatives risk, portfolio turnover risk, leverage risk, market disruption risk, defensive positions risk, inflation risk, certain affiliations risk, anti-takeover risk, secondary market for the Fund's shares, and lending portfolio securities risk.
Qualified Dividend Tax Risk: There can be no assurance as to what portion of the distributions paid to the Fund's Common Shareholders will consist of tax-advantaged qualified dividend income. For taxable years beginning before January 1, 2011, certain distributions designated by the Fund as derived from qualified dividend income will be taxed in the hands of non-corporate Common Shareholders at the rates applicable to long-term capital gain, provided certain holding period and other requirements are satisfied by both the Fund and the Common Shareholders. Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income. Certain investment strategies of the Fund will limit the Fund's ability to meet these requirements and consequently will limit the amount of qualified dividend income received and distributed by the Fund. A change in the favorable provisions of the federal tax laws with respect to qualified dividends may effect a widespread reduction in announced dividends and may adversely impact the valuation of the shares of dividend-paying companies.
The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.
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