|
 |
|
-
2023 Estimated Capital Gain Distributions
Please note that none our First Trust Closed-End Funds are expected to pay a special long-term capital gain distribution in December. Also, none of the First Trust Closed-End Funds are expected to pay any special short-term capital gain distributions in December. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - First Trust High Income Long/Short Fund (the "Fund") is a diversified, closed-end management investment company. The Fund's primary investment objective is to provide current income. The Fund's secondary objective is capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, a majority of its assets in a diversified portfolio of U.S. and foreign (including emerging markets) high-yield corporate fixed-income securities of varying maturities that are rated below-investment grade at the time of purchase. For purposes of this strategy, "corporate fixed-income securities" include corporate bonds, debentures, notes, commercial paper and other similar types of corporate debt instruments, including instruments issued by corporations with direct or indirect government ownership, as well as asset-backed securities, preferred shares, senior floating-rate loan participations, commitments and assignments, payment-in-kind securities, zero-coupon bonds, bank certificates of deposit, fixed time deposits, bankers' acceptances and derivative instruments that provide the same or similar economic impact as a physical investment in the above securities. Below-investment grade fixed-income securities are commonly referred to as "high-yield" or "junk" bonds and are considered speculative with respect to the issuer's capacity to pay interest and repay principal. As part of its investment strategy, the Fund intends to maintain both long and short positions in securities under normal market conditions. The Fund will take long positions in securities that the Fund's Sub-Advisor believes offer the potential for attractive returns and that it considers in the aggregate to have the potential to outperform the Fund's benchmark, the ICE BofA US High Yield Constrained Index (the "Index"). The Fund will take short positions in securities that the Sub-Advisor believes in the aggregate will underperform the Index. The Fund's long positions, either directly or through derivatives, may total up to 130% of the Fund's Managed Assets. The Fund's short positions, either directly or through derivatives, may total up to 30% of the Fund's Managed Assets. "Managed Assets" means the average daily gross asset value of the Fund (which includes the principal amount of any borrowings), minus the sum of the Fund's liabilities.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Ticker | FSD |
Fund Type | High Yield Bond |
Investment Advisor | First Trust Advisors L.P. |
Portfolio Manager/Sub-Advisor | MacKay Shields LLC |
Investor Servicing Agent | Computershare Trust Company, N.A. |
CUSIP | 33738E109 |
Fiscal Year-End | 10/31 |
Exchange | NYSE |
Inception | 9/27/2010 |
Inception Price | $20.00 |
Inception NAV | $19.10 |
Closing NAV1 | $12.38 |
Closing Market Price2 | $11.29 |
Discount to Net Asset Value (NAV) | 8.80% |
Total Managed Assets | $541,329,897 |
Common Shares Outstanding | 33,291,015 |
Dividend Frequency | Monthly |
Dividend Per Share Amt3 | $0.1050 |
Distribution Rate4 | 11.16% |
Daily Volume | 95,948 |
Average 30-Day Daily Volume | 102,361 |
Closing Market Price 52-Week High/Low | $12.13 / $10.21 |
Closing NAV 52-Week High/Low | $13.16 / $11.83 |
Annual Expenses | Percent of Net Assets | Percent of Managed Assets |
Management Fees | 1.00% | 1.00% |
Other Expenses | 0.16% | 0.16% |
Total Operating Expenses | 1.16% | 1.16% |
|
Leverage Costs | 2.76% | 2.76% |
|
Total Annual Expenses | 3.92% | 3.92% |
|
Leverage costs include the interest expense on investments sold short.
Total Net Assets with Leverage | $541,329,897 |
Amount Attributable to Common Shares | $397,675,135 |
Amount Attributable to Other Borrowings | $143,654,762 |
Leverage (% of Total Adjusted Net Assets) | 26.54% |
|
Industry |
Percent |
|
Energy
|
14.33%
|
|
Services
|
9.85%
|
|
Media
|
8.43%
|
|
Capital Goods
|
7.87%
|
|
Basic Industry
|
7.77%
|
|
Leisure
|
5.68%
|
|
Consumer Goods
|
5.12%
|
|
Retail
|
4.98%
|
|
Automotive
|
4.91%
|
|
Telecommunications
|
4.85%
|
|
Healthcare
|
4.76%
|
|
Utility
|
4.58%
|
|
Technology & Electronics
|
3.78%
|
|
Real Estate
|
3.43%
|
|
Financial Services
|
3.29%
|
|
Banking
|
2.82%
|
|
Transportation
|
2.69%
|
|
Commercial Mortgage-Backed Securities
|
0.38%
|
|
Government Guaranteed
|
0.38%
|
|
Insurance
|
0.10%
|
Past performance is not indicative of future results.
|
Credit Quality |
Percent |
|
BBB- and above
|
15.84%
|
|
BB
|
51.47%
|
|
B
|
27.60%
|
|
CCC+ and below
|
5.08%
|
|
NR
|
0.01%
|
The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. Percentages of credit quality are based on the Fixed-Income Investments Long positions only; Short positions are excluded.
Avg Position Size as % of Total Investments | 0.25% |
Largest Position as % of Total Investments | 1.18% |
Weighted Average Effective Duration5 | 4.62 Years |
Weighted Average Effective Maturity | 2.45 Years |
Weighted Average Yield-to-Worst6 | 10.79% |
Gross Assets | 102.98% |
Net Long Positions | 88.96% |
Short Positions | -14.02% |
Short Position Exposure - U.S. Treasury Securities | 92.47% |
Short Position Exposure - Corporate Bond Securities | 7.53% |
NOTE: Portfolio Statistics are exclusive of cash and other assets and liabilities.
Asset |
Percent |
Corporate Bonds and Notes |
74.14% |
Foreign Corporate Bonds and Notes |
17.95% |
Capital Preferred Securities |
5.40% |
Senior Floating-Rate Loan Interests |
2.04% |
Mortgage Backed |
0.38% |
Equity |
0.09% |
|
|
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
|