First Trust launches First Trust Short Duration High Income Fund

By Toni Weeks

San Diego, Nov. 1 - First Trust Series Fund announced in a 497 filing with the Securities and Exchange Commission that it has launched its new high-yield fund, the First Trust Short Duration High Income Fund.

Under normal market conditions, the fund will seek a high level of current income with capital appreciation as a secondary objective by investing at least 80% of its net assets in high-yield debt securities and bank loans rated below investment grade or unrated. The fund intends to maintain a weighted average portfolio duration of three years or less.

William Housey, Scott D. Fries and Peter Fasone are the portfolio managers.

The fund offers class A, class C and class I share classes. The ticker symbols are FDHAX, FDHCX and FDHIX, respectively.

Shareholder fees will consist of a 3.5% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

The management fee will be 0.65% for all share classes. Including other fees and taking into account a fee waiver and expense reimbursement agreement with the investment adviser, the total annual fund operating expenses are expected to be 1.25% for class A, 2% for class C and 1% for class I shares. The agreement expires Nov. 1, 2014.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.