First Trust Launches Actively Managed Short Duration High Yield Bond ETF | News Canada Binary

First Trust Launches Actively Managed Short Duration High Yield Bond ETF | News Canada Binary.

First Trust Launches Actively Managed Short Duration High Yield Bond ETF

Make Huge returns on Investments & Make dreams come true!

The Future is Binary – New ETF Provides Currency Hedged and Duration Managed Exposure to High Yield Corporate Bond Market

TORONTOJune 30, 2014 /CNW/ – FT Portfolios Canada Co. (“First Trust Canada”), a privately owned company  is pleased to  announce the launch and initial issuance of the common and advisor class of units of the First Trust Short Duration High Yield Bond ETF (the “First Trust ETF”) (TSX: FHY/FHY.A).

To achieve its investment objectives, the First Trust ETF will primarily invest in a diversified portfolio of below investment grade debt securities as rated by Moody’s Investor Services, Inc., and Standard & Poors (Ba1/BB+ or below) or a similar rating by a designated rating organization (as defined in NI 81-102). Securities may also be unrated but considered to be of comparable credit quality to other below investment grade securities. The First Trust ETF may also invest opportunistically in senior floating rate loans, investment grade debt securities and convertible bonds. The fund’s aggregate exposure to senior floating rate loans will be limited to 40% of its NAV. The weighted average effective duration of the First Trust ETF’s portfolio securities may not exceed 3 years.

“Given the historically low interest rates in the present fixed-income market, investors have few options for earning attractive rates of return without incurring significant interest rate risk,” William Housey, CFA, Senior Vice President and Senior Portfolio Manager for the Leveraged Finance Investment Team of  First Trust Advisors. “By investing in high-yield bonds and other fixed income asset classes that exhibit a low correlation with traditional fixed income investments*, our ETF may improve both diversification  and risk-adjusted returns within diversified fixed-income portfolios,”said Mr. Housey. “Through our rigorous, repeatable and meticulous bottom-up credit evaluation process, Canadian investors may be able to capitalize on the best high-yield opportunities from strong issuers in a variety of sectors.”

“With a firming U.S. economy, improving corporate fundamentals and the end of the Fed’s bond purchase program drawing near, we expect higher interest rates in the future” said Fraser Howell, CEO of FT Portfolios Canada Co. ” The First Trust Short Duration High Yield ETF aims to enable investors to lower their portfolio duration and maintain an attractive yield.” adds Howell.

*traditional fixed income investments include long-term investment grade corporate bonds, and long-term government bonds. 

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.  As at April  30, 2013,  First Trust Advisors L.P., the portfolio advisor for the First Trust AlphaDEXTM ETFs, has approximately US $25 billionin ETF assets under management and more than US $90 billion total assets under supervision or management.  First Trust is the enterprise name used for the various businesses conducted inEuropeMexicoCanada and the U.S.

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worked in the plastic blow molding industry for over 30 years in many facets from inspection ( Quality control) to development team. Have had more then a passing interest in computers and the internet for over 20 years, some Web programming and design, on-line auctions and ecommerce from 1997 till 2006 . was involved with the online auction cooperative movement from 1999- 2002 .. ran my own Domains & web servers for online sales Store fronts , promoteing my auctions called Dman-N-Company , a niche type auction site Musicplus. Richard Dambrosi

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