CST: 30/08/2016 05:50:22   

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

221 Days ago

TORONTO, ONTARIO--(Marketwired - Jan 21, 2016) - 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 updated timing for the conversion of FSD into an exchange-traded fund or "ETF" (the "Conversion") and the merger of FHY into FSD (the "Merger").

Unitholders of FSD approved the Conversion and unitholders of FHY approved the Merger at unitholder meetings held in August 2015. Additionally, all required regulatory approvals regarding the Conversion and Merger have been received and FSD has filed a preliminary prospectus and amended and restated preliminary prospectus relating to the continuous distribution of the units of FSD post-Conversion. As FSD was in the midst of the prospectus clearance process at the beginning of November when FSD's annual redemption notice period commenced, the Manager decided to implement the Conversion following completion of the November 2015 annual redemption. Following the annual redemption, the Manager determined that the tax benefits expected to be derived from maintaining the forward agreement for the balance of its term would no longer have a material impact in the ETF structure. Accordingly, the Manager determined that the forward agreement should be pre-settled in early 2016, and it has now been pre-settled in full.

The Conversion is expected to be implemented on January 25, 2016, and in connection with the Conversion the units of FSD will be consolidated and holders of Class F Units of FSD will receive 0.5 Common Units of FSD for each Class F Unit held and holders of Class A Units of FSD will receive 0.5 Advisor Class Units of FSD for each Class A Unit held. Additionally, in connection with the implementation of the Conversion the name of FSD will be changed effective immediately to First Trust Short Duration High Yield Bond ETF (CAD-Hedged).

The Merger is expected to be implemented shortly after the implementation of the Conversion and no later than the end of February 2016.

Further information about FT Portfolios Canada's ETFs can be found at www.firsttrust.ca.

Media Contact:
FT Portfolios Canada Co.
Fraser Howell
President
1-877-622-5552
FraserHowell@firsttrust.ca