First Trust’s new Convertible Securities Income Fund to sell shares

By Toni Weeks

San Luis Obispo, Calif., Jan. 5 – The First Trust Convertible Securities Income Fund announced in an N-2 filing with the Securities and Exchange Commission its plans for a public offering of shares with a 45-day greenshoe option.

The newly organized, diversified, closed-end management investment company seeks to provide a high level of current income and capital appreciation. Under normal market conditions, it will invest at least 80% of its managed assets in a portfolio of U.S. and foreign convertible securities, including convertible debt, convertible preferred, mandatory convertible, synthetic convertible and exchangeable debt securities as well as those with warrants or common stock attached.

The fund may invest in securities of any maturity or duration. To generate additional income, the fund currently expects to write or sell call options on portfolio equity securities. It may invest in securities of any credit quality, including those rated below investment grade.

George M. Douglas, Ravi Malik, Michael J. Opre and Florian Eitner are the portfolio managers. Senior analyst Ethan Ganz will assist the portfolio management team. All are employees of subadviser SSI Investment Management Inc.

The fund expects to sell shares at $20.00 apiece.

Offering costs are estimated at 0.2%. Management fees and total annual expenses have not yet been determined.

Wheaton, Ill.-based First Trust Advisors LP will be the fund’s investment adviser.

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