 |
| Investment Objective/Strategy -
The First Trust/Four Corners Senior Floating Rate 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. As a secondary objective, the Fund will attempt to preserve capital. The fund will pursue these objectives through investment in a portfolio of senior secured floating rate corporate loans. |
| |
| There can be no assurance that the Fund's investment objectives will be achieved. |
|
|
|
Fund Overview
|
| Ticker |
FCM |
| Fund Type |
Loan Participation |
| Investment Advisor |
First Trust Advisors L.P. |
| Portfolio Manager/Sub-Advisor |
Four Corners Capital Management LLC |
| Investor Servicing Agent |
BNY Mellon Investment Servicing (US) Inc. |
| CUSIP |
33733Q107 |
| Fiscal Year-End |
05/31 |
| Exchange |
NYSE Amex |
| Inception |
9/25/2003 |
| Inception Price |
$20.00 |
| Inception NAV |
$19.10 |
|
| Share Price and NAV History (Since Inception) |
 |
|
Past performance is not indicative of future results.
|
|
|
Current Fund Data (as of 7/30/2010)
|
| Closing Share Price |
$13.46 |
| Closing NAV |
$13.73 |
| Discount to NAV |
1.97% |
| Total Managed Assets |
$90,113,741 |
| Common Shares Outstanding |
4,924,349 |
| Dividend Frequency |
Monthly |
| Dividend per Share Amt1 |
$0.0425 |
| Distribution Rate2 |
3.79% |
| Daily Volume |
7,170 |
| Average 30-Day Daily Volume |
42,040 |
| Closing Share Price 52-Week High/Low |
$13.46 / $10.03 |
| Closing NAV 52-Week High/Low |
$14.13 / $12.55 |
|
|
|
Expense Ratios (as of 5/31/2010)
|
| Annual Expenses |
Percent of
Net Assets |
Percent of
Managed
Assets |
| |
| Management Fees |
1.32% |
0.97% |
| Other Expenses |
0.86% |
0.63% |
| Total Operating Expenses |
2.18% |
1.60% |
| |
| Leverage Costs |
1.04% |
0.76% |
|
| Total Annual Expenses |
3.22% |
2.36% |
| |
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
|
Leverage Information (as of
7/30/2010
)4
|
| Total Net Assets with Leverage |
$90,113,741 |
| Amount Attributable to Common Shares |
$67,613,741 |
| Amount Attributable to Preferred Shares |
$0 |
| Amount Attributable to Other Borrowings |
$22,500,000 |
| Leverage (% of Total Net Assets) |
24.97% |
| Top Holdings by Issuer (as of 6/30/2010)5 |
| Holding for 6/30/2010 |
Percent (%) |
| Georgia-Pacific Corporation |
1.90 |
| NRG Energy, Inc. |
1.90 |
| SunGard Data Systems, Inc. |
1.80 |
| The Hertz Corporation |
1.80 |
| Univar, Inc |
1.70 |
| Reynolds Consumer Products Holdings, Inc. |
1.70 |
| Dynegy Holdings, Inc. |
1.60 |
| Graham Packaging Company |
1.50 |
| Graphic Packaging International, Inc. |
1.50 |
| Intelsat Corporation |
1.50 |
|
|
| |
S&P Rating |
Percent (%) |
 |
BBB |
3.50 |
 |
BBB- |
5.40 |
 |
BB+ |
9.00 |
 |
BB |
17.10 |
 |
BB- |
26.80 |
 |
B+ |
18.90 |
 |
B |
7.40 |
 |
B- |
2.90 |
 |
CCC+ |
0.30 |
 |
CCC |
0.00 |
 |
D |
1.20 |
 |
NR |
1.40 |
 |
NR (Privately Rated Securities) |
6.10 |
|
|
| Cumulative Total Returns
(as of 6/30/2010)3
|
| Period |
Share Price (%) |
NAV (%) |
| 3 Months |
-3.78 |
-2.56 |
| 1 Year |
33.82 |
16.27 |
| 3 Years |
-20.17 |
-12.61 |
| 5 Years |
0.33 |
0.62 |
| Year to Date |
3.49 |
2.08 |
| Inception to date |
-3.95 |
10.46 |
| Calendar Year Returns
(as of 12/31/2009)3
|
| Period |
Share Price (%) |
NAV (%) |
| 2004 |
2.38 |
6.84 |
| 2005 |
-5.44 |
6.25 |
| 2006 |
17.36 |
6.63 |
| 2007 |
-11.14 |
-0.36 |
| 2008 |
-51.77 |
-49.57 |
| 2009 |
90.30 |
76.57 |
| Average Annual Returns
(as of 6/30/2010)3
|
| Period |
Share Price (%) |
NAV (%) |
| 3 Years |
-7.24 |
-4.39 |
| 5 Years |
0.07 |
0.12 |
| Inception to date |
-0.59 |
1.48 |
| Portfolio Composition (as of 6/30/2010)5 |
| Industry Classification |
Percent (%) |
| Health Care Providers & Services |
13.40 |
| Media |
8.90 |
| Electric Utilities |
7.10 |
| Chemicals |
6.70 |
| Diversified Consumer Services |
6.00 |
| Hotels, Restaurants & Leisure |
5.70 |
| Aerospace & Defense |
5.30 |
| Containers & Packaging |
5.00 |
| Software |
3.90 |
| Diversified Telecommunication Services |
3.70 |
| Oil, Gas & Consumable Fuels |
3.30 |
| Pharmaceuticals |
2.80 |
| Road & Rail |
2.50 |
| Commercial Services & Supplies |
2.50 |
| Paper & Forest Products |
2.40 |
| Independent Power Producers & Energy Traders |
2.40 |
| Specialty Retail |
2.10 |
| Energy Equipment & Services |
2.00 |
| IT Services |
1.90 |
| Insurance |
1.40 |
| Computers & Peripherals |
1.40 |
| Capital Markets |
1.00 |
| Metals & Mining |
1.00 |
| Multi-Utilities |
1.00 |
| Real Estate Investment Trusts (REITs) |
0.90 |
| Health Care Equipment & Supplies |
0.80 |
| Gas Utilities |
0.70 |
| Food Products |
0.60 |
| Semiconductors & Semiconductor Equipment |
0.60 |
| Internet & Catalog Retail |
0.50 |
| Household Durables |
0.50 |
| Food & Staples Retailing |
0.50 |
| Electronic Equipment, Instruments & Components |
0.50 |
| Airlines |
0.50 |
| Automobiles |
0.50 |
|
| Footnotes
|
| 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 |
The Other Borrowings represents proceeds from a Revolving Credit Facility ('Credit Facility') with the Bank of Nova Scotia. The Credit Facility is to be used as leverage for the Fund. The maximum total commitment under the Credit Facility is $25,000,000. |
| 5 |
Information is based upon trade date plus one recording of security transactions. Therefore, trades on the last day of the period are not reflected. |
|
|
|
|
Risk Considerations
|
The Fund is subject to various risks, including the following:
Credit Risk, Senior Loans Risk, Interest Rate Risk,
Changes to Net Asset Value, Discount From or Premium to Net Asset Value,
Leverage Risk, Anti-Takeover Provisions, Management Risk,
Market Event Risk and MMP Shares Risk.
In the event a Borrower fails to pay scheduled interest or principal payments on a Senior Loan held by the Fund, the
Fund will experience a reduction in its income and a decline in the market value of the Senior Loan, which will likely reduce dividends and lead to a 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 acquiring a participation, the Fund may also be subject to credit risks with respect to that Lender. The value of the collateral may not equal the Fund's investment when the Senior Loan is acquired or may decline below the principal amount of the Senior Loan subsequent to the Fund's investment. Also, to the extent that collateral consists of stock 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 may lose all or substantially all of its value, causing the Senior Loan to be under collateralized. Therefore, the liquidation of the collateral underlying a Senior Loan may not satisfy the issuer's obligation to the Fund in the event of non-payment of scheduled interest or principal, and the collateral may not be readily liquidated.
The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.
|
|
|
|
|