First Trust launches first actively managed Senior Loan ETF in Canada

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 AlphaDEX^TM 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.

Media Contact

Fraser Howell, President
FT Portfolios Canada Co.
330 Bay Street, Suite 1300
Toronto, Ontario
M5H 2S8
Email: [email protected]
1-877-622-5552