First Trust to launch First Trust Senior Loan Fund in 2013

By Toni Weeks

San Diego, Dec. 17 - First Trust Exchange-Traded Fund IV announced its plans to launch the First Trust Senior Loan Fund, according to an N-1A filing with the Securities and Exchange Commission.

The fund will seek high current income and, under normal market conditions, will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in senior loans. The loans can be made to domestic or foreign corporations, partnerships and other entities from a variety of industries and may include leveraged loans, bank loans and floating-rate loans. The fund may invest up to 20% of its net assets in fixed-rate or floating-rate income-producing securities, warrants or equity securities.

William Housey and Scott D. Fries will be the portfolio managers.

The ticker symbol has not yet been determined.

There will be no sales load. Total annual fund operating expenses have not yet been set.

Wheaton, Ill.-based First Trust Advisors LP will serve as the fund's investment adviser.

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