First Trust fund seeks to capitalize on environment-focused assets

By Jennifer Chiou

New York, Nov. 14 - The First Trust Global Resource Solution Fund will look to achieve its investment objectives by investing in the equity securities of companies with a focus on profiting from the convergence of the following macro-economic trends: population growth, natural resource depletion and the effects of climate change and technology advances, according to an N-2 filing with the Securities and Exchange Commission.

The Wheaton, Ill.-based fund said it will invest in a diversified portfolio of non-U.S. and U.S. equity securities of companies active in the global environmental markets, with a concentration on the securities of companies that the fund's sub-advisor believes will benefit from increased corporate, private and government spending in six areas: water and waste water; agribusiness; renewable energy and energy efficiency; infrastructure; new materials and recycling; and environmental technologies.

The filing stated that the First Trust fund will employ a limited, tactical covered call option strategy seeking to enhance its risk-adjusted total returns over time and also to generate option premiums to more efficiently implement the fund's distribution policy.

Under normal market conditions, the fund will specifically invest at least 80% of its managed assets in companies active in the global environmental markets cited above.

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