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2024 Estimated Capital Gain Distributions
Certain First Trust Open-End Funds are expected to pay a long-term capital gain distribution in December. For a list of open-end funds expected to pay a long-term capital gain distribution, please click here. Also, certain First Trust Open-End Funds are expected to pay short-term capital gain distributions in December. For a list of open-end funds expected to pay a short-term capital gain distribution, please click here. 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 - The First Trust Short Duration High Income Fund seeks to provide a high level of current income and as a secondary objective, capital appreciation. There can be no assurance the Fund's investment objectives will be achieved. Under normal market conditions, the Fund invests at least 80% of its net assets (including investment borrowings) in high yield debt securities and bank loans that are rated below-investment grade ("junk bonds") or unrated. The Fund may invest up to 15% of its net assets in non-U.S. securities denominated in non-U.S. currencies. The Fund may also invest in investment grade debt securities and convertible bonds.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Ticker | FDHAX |
Fund Type | High Yield Bond and Loan Participation |
Investment Advisor | First Trust Advisors L.P. |
Investor Servicing Agent | BNY Mellon Investment Servicing (US) Inc. |
CUSIP | 33738F601 |
Share Class | Class A |
Fiscal Year-End | 10/31 |
Inception Date | 11/1/2012 |
Minimum Investment Amount | $2,500 |
Minimum Subsequent Investment Amount | $50 |
Maximum Initial Sales Charge | 3.50% |
Total Expense Ratio* | 1.39% |
Net Expense Ratio* | 1.25% |
* As of 3/1/2024
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of any class of shares of the fund from exceeding 1.00% per year, excluding 12b-1 distribution and service fees, acquired fund fees and expenses and certain other expenses as described in the prospectus, through 2/28/2025, and to not exceed 1.35% per year from 3/01/2025 through 2/28/2034. Net expense ratio shown above includes 12b-1 service fees, acquired fund fees and certain other expenses as described in the prospectus.
Net Asset Value1 | $18.19 |
Total Net Assets | $76,627,052 |
Outstanding Shares | 618,340 |
NAV 52-Week High/Low | $18.24 / $17.81 |
Holding |
Percent |
1011778 B.C. Unlimited Liability Company (Restaurant Brands) (aka Burger King/Tim Horton's) |
2.92% |
Open Text Corporation (GXS) |
2.87% |
Go Daddy Operating Co, LLC |
2.86% |
SS&C Technologies Holdings, Inc. |
2.86% |
HUB International Limited |
2.84% |
Post Holdings, Inc. |
2.51% |
United Rentals, Inc. |
2.19% |
Berry Global, Inc. |
2.16% |
VICI Properties 1, LLC |
2.10% |
Ultimate Software Group (UKG, Inc.) |
1.78% |
Asset |
Percent |
High Yield |
70.21% |
Senior Loan |
29.79% |
Weighted Average Effective Duration6 | 2.02 Years |
Weighted Average Maturity | 4.79 Years |
Weighted Average Price | $97.53 |
Weighted Average Coupon | 6.82% |
Weighted Average Yield-To-Maturity7 | 6.87% |
Days to Reset8 | 20.66 Days |
3-Month Term SOFR9 | 4.40% |
Percent of Assets with Interest Rate Floors | 16.31% |
Please note: Weighted average maturity excludes defaulted assets.
Past performance is not indicative of future results.
Industry |
Percent |
Software |
17.71% |
Insurance |
12.37% |
Hotels, Restaurants & Leisure |
7.96% |
Containers & Packaging |
7.36% |
IT Services |
6.45% |
Commercial Services & Supplies |
5.42% |
Media |
5.09% |
Health Care Technology |
4.42% |
Health Care Providers & Services |
3.88% |
Food Products |
3.84% |
Credit Quality |
Percent |
BBB |
0.65% |
BBB- |
6.45% |
BB+ |
2.82% |
BB |
13.27% |
BB- |
9.51% |
B+ |
12.89% |
B |
24.07% |
B- |
13.35% |
CCC+ |
9.24% |
CCC |
1.95% |
CCC- |
1.64% |
CC |
1.13% |
NR |
3.03% |
The ratings are by S&P Global Ratings. 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.
ICE BofA US High Yield Constrained Index - The Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market but caps issuer exposure at 2%. Morningstar® LSTA® US Leveraged Loan Index - The Index, formerly the S&P/LSTA Leveraged Loan Index, is a market value-weighted index that is designed to deliver comprehensive, precise coverage of the US leveraged loan market. Blended Benchmark - The Benchmark consists of the following two indexes: 50% ICE BofA U.S. High Yield Constrained Index / 50% Morningstar® LSTA® US Leveraged Loan Index. The Blended Benchmark returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above. Bloomberg US Aggregate Bond Index - The Index covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS.
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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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