Diversified High Income Closed-End, 43  Ticker: FEONYX
 
Description
The Diversified High Income Closed-End Portfolio is a unit investment trust that seeks a high rate of current monthly income, with capital appreciation as a secondary objective by investing in a diversified pool of closed-end funds.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: DVHI43
Portfolio Status: Secondary
Initial Offer Date: 02/03/2021
Secondary Date: 03/31/2021
Portfolio Ending Date: 02/03/2023
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $10.3281
POP(*): $10.5658
Remaining Deferred Sales Charge: $0.0000
* As of Trade Date: 07/23/2021 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 7/23/2021) Per Unit (as of 7/19/2021)
7.48% $0.79070
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Liberty All-Star Equity Fund USA 3.46%
 Aberdeen Australia Equity Fund, Inc. IAF 3.36%
 LMP Capital and Income Fund Inc. SCD 3.34%
 BNY Mellon High Yield Strategies Fund DHF 3.31%
 John Hancock Preferred Income Fund II HPF 3.23%
 Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund ETW 3.18%
 The Gabelli Multimedia Trust Inc. GGT 3.16%
 Nuveen Tax-Advantaged Dividend Growth Fund JTD 3.14%
 GAMCO Global Gold Natural Resources & Income Trust GGN 3.07%
 KKR Income Opportunities Fund KIO 3.07%
 Advent Convertible and Income Fund AVK 3.06%
 Eaton Vance Tax-Managed Buy-Write Opportunities Fund ETV 3.06%
 Credit Suisse High Yield Bond Fund DHY 3.04%
 PIMCO Dynamic Income Fund PDI 3.04%
 Pioneer High Income Fund Inc. PHT 3.03%
 Western Asset Mortgage Opportunity Fund Inc. DMO 3.03%
 PGIM Global High Yield Fund Inc. GHY 3.00%
 Neuberger Berman High Yield Strategies Fund Inc. NHS 2.97%
 Pioneer Floating Rate Fund Inc. PHD 2.96%
 PIMCO Income Opportunity Fund PKO 2.94%
 Eaton Vance Limited Duration Income Fund EVV 2.92%
 The Gabelli Equity Trust Inc. GAB 2.92%
 Blackstone Strategic Credit Fund BGB 2.92%
 BlackRock Debt Strategies Fund, Inc. DSU 2.91%
 Wells Fargo Multi-Sector Income Fund ERC 2.90%
 John Hancock Income Securities Trust JHS 2.86%
 Voya Emerging Markets High Dividend Equity Fund IHD 2.84%
 Virtus AllianzGI Convertible & Income Fund II NCZ 2.83%
 Nuveen Credit Strategies Income Fund JQC 2.82%
 Western Asset Emerging Markets Debt Fund Inc. EMD 2.81%
 Aberdeen Income Credit Strategies Fund ACP 2.80%
 Virtus Global Multi-Sector Income Fund VGI 2.80%
 Voya Asia Pacific High Dividend Equity Income Fund IAE 2.73%
 
Total Number of Holdings:    33
Underlying Securities information represented above is as of 07/22/2021 but will vary with future fluctuations in the market.

Risk Considerations

Brexit Risk. About one year after the United Kingdom officially departed the European Union (commonly referred to as "Brexit"), the United Kingdom and the European Union reached a trade agreement that became effective on December 31, 2020. It is not currently possible to determine the extent of the impact the Brexit trade agreement may have on the portfolio's investments and this uncertainty could negatively impact current and future economic conditions in the United Kingdom and other countries, which could negatively impact the value of the portfolio's investments.

Buy & Hold Risk – Taxable Trusts. This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

Closed-End Fund Risk. Closed-end funds are subject to various risks, including management's ability to meet the fund's investment objective, and to manage the fund's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding the funds or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund's net asset value, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds employ the use of leverage, which increases the volatility of such funds.

Convertible Securities Risk. Convertible securities are bonds, preferred stocks and other securities that pay a fixed rate of interest (or dividends) and will repay principal at a fixed date in the future. However, these securities may be converted into a specific number of common stocks at a specified time. As such, an investment in convertible securities entails some of the risks associated with both common stocks and bonds.

Covenant-Lite Loan Risk. Certain of the funds invest significantly in "covenant-lite" loans, which are loans made with minimal protections for the lender. Because covenant-lite loans are less restrictive on borrowers and provide less protection for lenders than typical corporate loans, the risk of default may be significantly higher.

COVID-19 Economic Impact Risk. The COVID-19 global pandemic has caused significant volatility and declines in global financial markets, causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, although many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

Floating Rate LIBOR Risk. Certain of the floating-rate securities pay interest based on LIBOR. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain portfolio investments. Any potential effects of the transition away from LIBOR can be difficult to ascertain, and they may vary depending on a variety of factors and they could result in losses to the portfolio.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

Mortgage-Backed Securities Risk. Rising interest rates tend to extend the duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-backed securities are subject to prepayment risk, the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline.

Options Risk. Options are subject to various risks including that their value may be adversely affected if the market for the option becomes less liquid or smaller. In addition, options will be affected by changes in the value and dividend rates of the stock subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock and the remaining time to expiration.

Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

Volatility Risk. The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.

Additional Risk. For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

Important Note. It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

Operational Risk. As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial professional or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.