First Trust High Income Long/Short Fund (the "Fund") (NYSE: FSD)
has declared the Fund’s regularly scheduled monthly common share
distribution in the amount of $0.105 per share payable on June 17,
2024, to shareholders of record as of June 3, 2024. The ex-dividend
date is expected to be June 3, 2024. The monthly distribution
information for the Fund appears below.
First Trust High
Income Long/Short Fund (FSD):
Distribution per share:
$0.105
Distribution Rate based on the May 17,
2024 NAV of $12.57:
10.02%
Distribution Rate based on the May 17,
2024 closing market price of $11.95:
10.54%
This distribution will consist of net investment income earned
by the Fund and return of capital and may also consist of net
short-term realized capital gains. The final determination of the
source and tax status of all 2024 distributions will be made after
the end of 2024 and will be provided on Form 1099-DIV.
The Fund is a diversified, closed-end management investment
company that seeks to provide current income. The Fund has a
secondary objective of capital appreciation. The Fund seeks to
achieve its investment objectives by investing, under normal market
conditions, a majority of its assets in a diversified portfolio of
U.S. and foreign (including emerging markets) high-yield corporate
fixed-income securities of varying maturities that are rated
below-investment grade at the time of purchase.
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. FTA
and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA
registered broker-dealer, are privately-held companies that provide
a variety of investment services. FTA has collective assets under
management or supervision of approximately $218 billion as of April
30, 2024 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts. FTA
is the supervisor of the First Trust unit investment trusts, while
FTP is the sponsor. FTP is also a distributor of mutual fund shares
and exchange-traded fund creation units. FTA and FTP are based in
Wheaton, Illinois.
MacKay Shields LLC ("MacKay") serves as the Fund's investment
sub-advisor. MacKay is an indirect wholly-owned subsidiary of New
York Life Insurance Company and a wholly-owned subsidiary of New
York Life Investment Management Holdings LLC. The firm manages
assets on behalf of a global clientele which include corporations,
endowments, foundations, Taft-Hartley plans, public funds, and
financial entities in the U.S., Europe, Asia and the Middle East.
MacKay Shields provides investors with specialty fixed income
investment strategies and agility across global fixed income
markets. For more than 30 years, MacKay Shields' dedicated teams of
specialists have delivered customized solutions backed by
disciplined research and a commitment to delivering long-term value
for its clients. As of February 29, 2024, MacKay manages
approximately $140.7 billion in assets.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the Fund are identified below, which
includes the risk that you could lose some or all of your
investment in the Fund. The principal risks of investing in the
Fund are spelled out in the Fund's annual shareholder reports. The
order of the below risk factors does not indicate the significance
of any particular risk factor. The Fund also files reports, proxy
statements and other information that is available for
review.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost. There can be no assurance that the Fund's investment
objectives will be achieved. The Fund may not be appropriate for
all investors.
Market risk is the risk that a particular investment, or shares
of a fund in general may fall in value. Investments held by the
Fund are subject to market fluctuations caused by real or perceived
adverse economic conditions, political events, regulatory factors
or market developments, changes in interest rates and perceived
trends in securities prices. Shares of a fund could decline in
value or underperform other investments as a result. In addition,
local, regional or global events such as war, acts of terrorism,
market manipulation, government defaults, government shutdowns,
regulatory actions, political changes, diplomatic developments, the
imposition of sanctions and other similar measures, spread of
infectious disease or other public health issues, recessions,
natural disasters or other events could have significant negative
impact on a fund and its investments.
Current market conditions risk is the risk that a particular
investment, or shares of the fund in general, may fall in value due
to current market conditions. As a means to fight inflation, the
Federal Reserve and certain foreign central banks have raised
interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously
implemented quantitative easing. Recent and potential future bank
failures could result in disruption to the broader banking industry
or markets generally and reduce confidence in financial
institutions and the economy as a whole, which may also heighten
market volatility and reduce liquidity. Ongoing armed conflicts
between Russia and Ukraine in Europe and among Israel, Hamas and
other militant groups in the Middle East, have caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the
United States. The hostilities and sanctions resulting from those
hostilities have and could continue to have a significant impact on
certain fund investments as well as fund performance and liquidity.
The COVID-19 global pandemic, or any future public health crisis,
and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and
uncertainty in global financial markets, negatively impacting
global growth prospects.
The Fund invests in non-investment grade debt instruments,
commonly referred to as "high-yield securities". High-yield
securities are subject to greater market fluctuations and risk of
loss than securities with higher ratings. Lower-quality debt tends
to be less liquid than higher-quality debt.
The debt securities in which the Fund invests are subject to
certain risks, including issuer risk, reinvestment risk, prepayment
risk, credit risk, and interest rate risk. Issuer risk is the risk
that the value of fixed-income securities may decline for a number
of reasons which directly relate to the issuer. Reinvestment risk
is the risk that income from the Fund's portfolio will decline if
the Fund invests the proceeds from matured, traded or called bonds
at market interest rates that are below the Fund portfolio's
current earnings rate. Prepayment risk is the risk that, upon a
prepayment, the actual outstanding debt on which the Fund derives
interest income will be reduced. Credit risk is the risk that an
issuer of a security will be unable or unwilling to make dividend,
interest and/or principal payments when due and that the value of a
security may decline as a result. Interest rate risk is the risk
that fixed-income securities will decline in value because of
changes in market interest rates.
In times of unusual or adverse market, economic, regulatory or
political conditions, the Fund may not be able, fully or partially,
to implement its short selling strategy. Short selling creates
special risks which could result in increased volatility of returns
and may result in greater gains or greater losses.
The Fund invests in securities of non-U.S. issuers which are
subject to higher volatility than securities of U.S. issuers.
Because the Fund invests in non-U.S. securities, you may lose money
if the local currency of a non-U.S. market depreciates against the
U.S. dollar.
Investments in securities of issuers located in emerging market
countries are considered speculative and there is a heightened risk
of investing in emerging markets securities. Financial and other
reporting by companies and government entities also may be less
reliable in emerging market countries. Shareholder claims that are
available in the U.S., as well as regulatory oversight and
authority that is common in the U.S., including for claims based on
fraud, may be difficult or impossible for shareholders of
securities in emerging market countries or for U.S. authorities to
pursue.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. LIBOR has
ceased to be made available as a reference rate and there is no
assurance that any alternative reference rate, including the
Secured Overnight Financing Rate ("SOFR"), will be similar to or
produce the same value or economic equivalence as LIBOR. The
unavailability or replacement of LIBOR may affect the value,
liquidity or return on certain fund investments and may result in
costs incurred in connection with closing out positions and
entering into new trades. Any potential effects of the transition
away from LIBOR on a fund or on certain instruments in which a fund
invests is difficult to predict and could result in losses to the
fund.
Forward foreign currency exchange contracts involve certain
risks, including the risk of failure of the counterparty to perform
its obligations under the contract and the risk that the use of
forward contracts may not serve as a complete hedge because of an
imperfect correlation between movements in the prices of the
contracts and the prices of the currencies hedged.
Distressed securities frequently do not produce income while
they are outstanding. The Fund may be required to incur certain
extraordinary expenses in order to protect and recover its
investment. The Fund also will be subject to significant
uncertainty as to when and in what manner and for what value the
obligations evidenced by the distressed securities will eventually
be satisfied.
Illiquid and restricted securities may be difficult to dispose
of at a fair price at the times when the Fund believes it is
desirable to do so.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Fund's daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
https://www.ftportfolios.com or by calling 1-800-988-5891.
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Press Inquiries: Ryan Issakainen, 630-765-8689 Analyst
Inquiries: Jeff Margolin, 630-915-6784 Broker Inquiries: Sales
Team, 866-848-9727
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