FT Portfolios Canada Co Update on Conversion of First Trust Advantaged Short Duration High Yield Bond Fund (FSD) into ETF & Merger of First Trust Short Duration High Yield Bond ETF (FHY) into FSD
/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 10/29/15 -- FT Portfolios Canada Co. (the "Manager"), the manager of each of First Trust Advantaged Short Duration High Yield Bond Fund ("FSD") (TSX: FSD) and First Trust Short Duration High Yield Bond ETF ("FHY") (TSX: FHY), announced today an update for the proposed conversion of FSD into an exchange-traded fund or "ETF" (the "Conversion") and the proposed merger of FHY into FSD (the "Merger").
Unitholders of FSD approved the Conversion and the unitholders of FHY approved the Merger at meetings held in August 2015. Additionally, all required regulatory approvals regarding the Conversion and Merger have now been received and FSD has filed a preliminary prospectus relating to the continuous distribution of the units of FSD post-Conversion. As FSD is in the midst of the prospectus clearance process and FSD's annual redemption notice period commences at the beginning of November, the Manager has determined to delay the Conversion and Merger until after the November 2015 annual redemption.
The Conversion and Merger will provide FSD unitholders with the benefits previously identified, including: lower management fee and lower management expense ratio; lower trading discount; intra-day liquidity; greater portfolio transparency; and a no leverage strategy going forward.
The Manager will provide further details on the timing of the Conversion and Merger after the annual redemption has been completed.
Further information about FT Portfolios Canada's ETFs can be found at www.firsttrust.ca.
Contacts:
Media Contact:
Fraser Howell, President
FT Portfolios Canada Co.
877-622-5552
FraserHowell@firsttrust.ca
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