THE FUND SEEKS TO CAPITALIZE ON ATTRACTIVE YIELDS IN THE SENIOR
LOAN MARKET WHILE OFFERING AN ELEMENT OF PROTECTION AGAINST RISING
INTEREST RATES
TORONTO, Aug. 28, 2013 /CNW/ - FT Portfolios Canada Co.
("First Trust Canada"), a privately owned company is pleased to
announce the launch of the common and advisor class of units of the
First Trust Senior Loan ETF (CAD-Hedged) (TSX: FSL &
FSL.A).
The First Trust Senior Loan ETF (CAD-Hedged) seeks to provide
Unitholders with a high level of current income by investing
primarily in a diversified portfolio of senior floating rate loans
and debt securities, with capital appreciation as a secondary
objective. First Trust Senior Loan ETF (CAD-Hedged) will primarily
invest in a portfolio of senior floating rate loans which are
generally rated at or below BB+ by Standard & Poors, or Ba1 or
less by Moody's Investor Services, Inc., or a similar rating by an
approved credit rating organization. The Fund attempts to
outperform the S&P/LSTA U.S. Leveraged Loan 100 Index.
"First Trust Canada is pleased to offer Canadians the first
actively managed senior loan ETF. We believe an allocation to
senior loans may address two issues critical to investors in
today's low interest rate environment: the search for yield and the
desire for protection against rising interest rates. The First
Trust Senior Loan ETF (CAD-Hedged) is the latest example of our
commitment to Canadian investors to developing ETFs that
democratize access to asset classes and strategies normally only
available to institutional investors" said Fraser Howell, President & CFO at FT
Portfolios Canada Co. "We are equally pleased to tap the expertise
of the Leveraged Finance Investment Team of our affiliate, First
Trust Advisors L.P., a group of experienced senior loan and high
yield managers in the U.S., to manage the Fund," Mr. Howell
added.
The active management structure allows the Fund's portfolio
advisor to potentially obtain both attractive risk-adjusted and
absolute returns over time.
"While an index-based senior loan ETF principally considers the
market value of the debt issuance outstanding in its selection
methodology, an actively managed ETF gives us the latitude to
utilize our rigorous credit process in evaluating an individual
company's ability to repay its debt, which we believe is paramount
to driving attractive risk-adjusted and absolute returns over the
long term," said William Housey,
CFA, Senior Vice President and Senior Portfolio Manager for the
Leveraged Finance Investment Team of First Trust Advisors. "Many
fixed-income investors are looking for alternative sources of
income that have historically performed well when interest rates
have increased, such as senior loans, and we believe an actively
managed ETF is an ideal way for investors to access a diversified
portfolio of senior loans while gaining enhanced transparency and
liquidity."
About First Trust
The First Trust companies are a well-respected global enterprise
with a history in the U.S. market since 1991 and in Canada since 1996. First Trust Advisors L.P.,
the portfolio advisor for the First Trust AlphaDEXTM
ETFs, has approximately US $14
billion in ETF assets under management and approximately US
$71 billion total assets under
supervision or management. First Trust is the enterprise name used
for the various businesses conducted in Europe, Canada and the U.S.
Further information about FT Portfolios Canada's ETFs can be
found at www.firsttrust.ca or at www.firsttrustetfs.ca
Commissions, management fees and expenses all may be
associated with investments in exchange traded funds. Please
read the prospectus before investing. Exchange traded funds are
not guaranteed, their values change frequently and past
performance may not be repeated.
SOURCE FT Portfolios Canada Co.
