First Trust Strategic Allocation Fund to offer $20 shares

By Toni Weeks

San Diego, Nov. 15 - First Trust Strategic Allocation Fund, a newly organized, diversified, closed-end management investment company, has registered shares in an N-2 filing with the Securities and Exchange Commission.

Wheaton, Ill.-based First Trust Advisors LP will be the fund's investment adviser. John Gambla and Rob A. Guttschow will be the portfolio managers. Thompson, Siegel & Walmsley LLC will be the subadviser.

The fund seeks current income with capital appreciation as a secondary objective and will invest in a diversified portfolio of common stocks, corporate high-yield debt securities and preferred stocks. Initially, the fund is expected to invest about 40% of its managed assets in common stocks, 40% in corporate high-yield debt securities and about 20% in preferreds. Thereafter, the percentage of managed assets in each category is expected to vary.

The fund will also employ a strategy of selling covered call options on up to 100% of the common stocks held in the fund's portfolio.

The shares will have a public offering price of $20.00 each and will carry a sales load of 4.5%, or $0.90 per share. The fund intends to pay monthly distributions. The minimum investment is 100 common shares. Underwriters will have a 45-day over-allotment option to purchase additional shares beyond the initial 1,000 shares registered.

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