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On January 3, 2023, the fair value methodology used to value the senior loan investments held by the fund was changed. Prior to that date, the senior loans were valued using the bid side price provided by a pricing service. After such date, the senior loans were valued using the midpoint between the bid and ask price provided by a pricing service. The change in the fund's fair value methodology on January 3, 2023, resulted in a one-time increase in the fund's net asset value of approximately $0.018 per share on that date, which represented a positive impact on the fund's performance of 0.11%.
Investment Objective/Strategy - First Trust High Yield Opportunities 2027 Term Fund ("the Fund") is a diversified, closed-end management investment company. The investment objective of the Fund is to provide current income. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its Managed Assets in high yield debt securities of any maturity that are rated below investment grade at the time of purchase or unrated securities determined by the Advisor to be of comparable quality. High yield debt securities include U.S. and non-U.S. corporate debt obligations and senior, secured floating rate loans ("Senior Loans"). Securities rated below investment grade are commonly referred to as "junk" or "high yield" securities and are considered speculative with respect to the issuer's capacity to pay interest and repay principal. There can be no assurance that the Fund will achieve its investment objective or that the Fund's investment strategies will be successful.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Ticker | FTHY |
Fund Type | High Yield Bond |
Investment Advisor | First Trust Advisors L.P. |
Investor Servicing Agent | BNY Mellon Investment Servicing (US) Inc. |
CUSIP | 33741Q107 |
Fiscal Year-End | 05/31 |
Exchange | NYSE |
Inception | 6/25/2020 |
Inception Price | $20.00 |
Inception NAV | $20.00 |
Closing NAV1 | $16.06 |
Closing Market Price2 | $14.41 |
Discount to Net Asset Value (NAV) | 10.27% |
Total Managed Assets | $697,651,308 |
Common Shares Outstanding | 36,772,989 |
Dividend Frequency | Monthly |
Dividend Per Share Amt3 | $0.1269 |
Distribution Rate4 | 10.57% |
Daily Volume | 98,518 |
Average 30-Day Daily Volume | 144,829 |
Closing Market Price 52-Week High/Low | $18.58 / $13.24 |
Closing NAV 52-Week High/Low | $19.79 / $15.44 |
Annual Expenses | Percent of Net Assets | Percent of Managed Assets |
Management Fees | 1.79% | 1.35% |
Other Expenses | 0.16% | 0.12% |
Total Operating Expenses | 1.95% | 1.47% |
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Leverage Costs | 1.14% | 0.86% |
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Total Annual Expenses | 3.09% | 2.33% |
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Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Holding |
Percent |
Charter Communications Operating, LLC |
4.09% |
Internet Brands, Inc. (Web MD/MH Sub I, LLC) |
3.78% |
Verscend Technologies, Inc. (Cotiviti) |
3.71% |
Tenet Healthcare Corp. |
3.63% |
HUB International Limited |
3.56% |
Nexstar Broadcasting, Inc. |
3.45% |
AssuredPartners, Inc. |
3.44% |
SS&C Technologies Holdings, Inc. |
2.87% |
AmWINS Group, Inc. |
2.48% |
Alliant Holdings I, LLC |
2.32% |
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S&P Rating |
Percent |
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BBB
|
0.68%
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BBB-
|
4.09%
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BB+
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3.79%
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BB
|
3.73%
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BB-
|
11.21%
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B+
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20.72%
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B
|
15.04%
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B-
|
19.77%
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CCC+
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17.67%
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CCC
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2.64%
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CCC-
|
0.14%
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C
|
0.02%
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NR
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0.50%
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The ratings are by Standard & Poor's except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. "NR" indicates no rating. 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.
Weighted Average Effective Duration5 | 3.73 Years |
Weighted Average Maturity | 4.80 Years |
Weighted Average Price | $89.55 |
Weighted Average Coupon | 6.14% |
Weighted Average Yield-To-Maturity6 | 8.89% |
Weighted Average Yield-to-Worst7 | 8.89% |
Option-Adjusted Spread8 | 419 bps |
Past performance is not indicative of future results.
Total Net Assets with Leverage | $697,651,308 |
Amount Attributable to Common Shares | $590,651,308 |
Amount Attributable to Other Borrowings | $107,000,000 |
Leverage (% of Total Adjusted Net Assets) | 15.34% |
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Asset |
Percent |
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High Yield
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82.16%
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Senior Loan
|
17.64%
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Other
|
0.20%
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Industry |
Percent |
Media |
17.53% |
Software |
15.10% |
Insurance |
12.06% |
Health Care Providers & Services |
10.58% |
Hotels, Restaurants & Leisure |
7.76% |
Health Care Technology |
4.88% |
Containers & Packaging |
3.99% |
Diversified Telecommunication Services |
2.05% |
Electric Utilities |
2.03% |
Health Care Equipment & Supplies |
1.96% |
Diversified Consumer Services |
1.92% |
Communications Equipment |
1.79% |
IT Services |
1.76% |
Building Products |
1.57% |
Life Sciences Tools & Services |
1.45% |
Trading Companies & Distributors |
1.42% |
Internet & Direct Marketing Retail |
1.10% |
Commercial Services & Supplies |
1.03% |
Entertainment |
0.97% |
Machinery |
0.95% |
Specialty Retail |
0.82% |
Construction & Engineering |
0.73% |
Construction Materials |
0.73% |
Diversified Financial Services |
0.70% |
Professional Services |
0.70% |
Automobiles |
0.62% |
Wireless Telecommunication Services |
0.53% |
Consumer Finance |
0.51% |
Household Products |
0.47% |
Aerospace & Defense |
0.40% |
Electronic Equipment, Instruments & Components |
0.40% |
Independent Power and Renewable Electricity Producers |
0.37% |
Road & Rail |
0.33% |
Pharmaceuticals |
0.24% |
Personal Products |
0.19% |
Capital Markets |
0.15% |
Food Products |
0.09% |
Food & Staples Retailing |
0.08% |
Electrical Equipment |
0.04% |
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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.
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