First Trust gives details for upcoming First Trust Senior Loan Fund

By Toni Weeks

San Luis Obispo, Calif., May 2 - First Trust Exchange-Traded Fund IV announced details for its upcoming new First Trust Senior Loan Fund, according to a 497 filing with the Securities and Exchange Commission.

The fund will primarily seek high current income with preservation of capital as a secondary objective and, under normal market conditions, will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in first-lien senior floating-rate bank loans. The loans are made predominantly to businesses operating in North America. The investment adviser intends to invest primarily in senior loans that are below investment-grade quality at the time of investment.

The fund will seek to outperform its primary index, the S&P/LSTA U.S. Leveraged Loan 100 index, and secondary index, the Markit iBoxx USD Leveraged Loan index. To do so, the fund will invest roughly 50% to 75% of its net assets in senior loans eligible for inclusion in the primary and/or secondary index.

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

The fund will trade on the Nasdaq under the symbol "FTSL."

There will be no shareholder fees. Total annual fund operating expenses of 0.85% consist solely of the 0.85% management fee.

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

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