First Trust Dividend & Income Fund Shareholders Approve New Investment Sub-Advisory Agreement with Chartwell Investment Partn...
16 Setembro 2013 - 6:05PM
Business Wire
First Trust Dividend and Income Fund (NYSE: FAV) (the “Fund”),
which until July 1, 2013 was known as First Trust Active Dividend
Income Fund, announced today that shareholders of the Fund have
voted to approve a new investment sub-advisory agreement (“New
Agreement”) with Chartwell Investment Partners, L.P. (“Chartwell”).
On June 10, 2013, the Fund’s Board of Trustees (“Board”) approved
an interim investment sub-advisory agreement with Chartwell, which
the Fund entered into effective July 1, 2013. The interim
investment sub-advisory agreement provided that Chartwell would
serve as the Fund’s sub-advisor for a maximum period of 150 days or
until shareholders approved the New Agreement, whichever occurred
first. The New Agreement with Chartwell was submitted to
shareholders of the Fund and took effect upon shareholder approval
today.
On June 10, 2013, the Board also approved a repositioning of the
Fund that contemplated certain changes to the Fund’s investment
strategies as described briefly below. Such changes were not
subject to shareholder approval. The Fund’s primary investment
objective, which is to seek a high level of current income, and
secondary investment objective, which is capital appreciation, are
not changing.
First Trust Advisors L.P. (“FTA”) has served as the Fund’s
investment advisor since the Fund’s inception. FTA along with its
affiliate, First Trust Portfolios L.P., are privately-held
companies which provide a variety of investment services, including
asset management and financial advisory services, with collective
assets under management or supervision of approximately $72 billion
as of August 31, 2013, through unit investment trusts,
exchange-traded funds, closed-end funds, mutual funds and
separately managed accounts.
Chartwell has served as the Fund’s investment sub-advisor since
July 1, 2013, and is an employee-owned investment firm focusing on
institutional, sub-advisory, and private client relationships. The
firm is a research-based equity and fixed-income manager with a
disciplined, team-oriented investment process. At August 31, 2013,
Chartwell had approximately $6.6 billion in assets under
management.
Pre-Repositioned Fund
Repositioned Fund Under normal market conditions, the
Fund invests at least 80% of its managed assets in a diversified
portfolio of dividend-paying multi-cap equity securities of both
U.S. and non-U.S. issuers that the Fund’s sub-advisor believes
offer the potential for attractive income and/or capital
appreciation. Equity securities in which the Fund may invest
include common stocks, preferred stocks, convertible securities,
American Depositary Receipts (“ADRs”), European Depositary Receipts
(“EDRs”), Global Depositary Receipts (“GDRs”) and warrants, all of
which generally trade on a U.S. national securities exchange. The
Fund may, from time to time, also invest a portion of its managed
assets in real estate investment trusts (“REITs”), master limited
partnerships (“MLPs”), exchange-traded funds (“ETFs”) and U.S.
government securities. The Fund will seek to achieve its investment
objectives by investing at least 80% of its managed assets in a
diversified portfolio of dividend-paying multi-cap equity
securities, debt securities and senior, secured floating rate loans
(“Senior Loans”) that offer the potential for attractive income
and/or capital appreciation. The Fund’s portfolio will
consist of two components: (1) the “Equity Component,” which will
consist primarily of equity securities of both U.S. and non-U.S.
issuers of any market capitalization that are readily traded on a
registered U.S. national securities exchange (“Equity Securities”);
and (2) the “Senior Loan/High Yield Debt Component.” The Equity
Securities in which the Fund may invest will include common stocks,
preferred securities, convertible securities, ADRs, including
American Depositary Shares, EDRs, GDRs and warrants, all of which
will generally trade on a registered U.S. national securities
exchange. In addition, Equity Securities will also include
(including for purposes of the 80% test set forth above)
investments in REITs, MLPs and investment companies, including ETFs
and business development companies. The Senior Loan/High Yield Debt
Component will primarily consist of (i) Senior Loans and (ii) debt
securities that are rated below investment grade (i.e., “junk
bonds”) or unrated at the time of purchase and deemed to be of
comparable credit quality (“High Yield Debt Securities”).
The Fund may invest up to 25% of its managed assets in U.S.
dollar-denominated Equity Securities of non-U.S. issuers.
The Fund may write call options on stock indices and single stocks
on up to 50% of the Fund’s portfolio value. On an ongoing and
consistent basis, the Fund expects to write (sell) covered call
options on equity indices and/or Equity Securities within the
Equity Component. The Fund will normally write (sell) covered call
options against equity indices and/or Equity Securities with strike
prices and expiration dates that are collectively intended to
provide risk/reward characteristics that are consistent with the
Fund’s investment objectives. The Fund is authorized to
utilize leverage through the issuance of preferred shares and/or
through the issuance of commercial paper or notes and/or other
borrowings, but currently has no outstanding leverage. The Fund
initially intends to utilize leverage through borrowings in an
amount up to 25% of the Fund’s managed assets to seek to enhance
its potential for current income. To the extent leverage is used,
the Fund currently intends to invest the funds raised through
leverage in Senior Loans and High Yield Debt Securities.
The Fund’s daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
First Trust Advisors L.P.Press Inquiries: Jane Doyle,
630-765-8775Analyst Inquiries: Jeff Margolin, 630-915-6784Broker
Inquiries: Jeff Margolin, 630-915-6784
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