First Trust Announces New Investment Sub-Advisor for FAV
June 10 2013 - 4:34PM
Business Wire
First Trust Advisors L.P. (“FTA”) announced today that the Board
of Trustees (“Board”) of First Trust Active Dividend Income Fund
(NYSE: FAV) voted to approve Chartwell Investment Partners, L.P.
(“Chartwell”) as investment sub-advisor to the Fund, replacing
Aviance Capital Management, LLC. Chartwell will begin serving as
investment sub-advisor to the Fund pursuant to an interim
sub-advisory agreement among the Fund, FTA and Chartwell effective
July 1, 2013. The interim sub-advisory agreement will remain in
effect for a maximum term of 150 days or, if earlier, until a new
sub-advisory agreement with Chartwell is approved by the
shareholders of the Fund. A special meeting of FAV shareholders to
vote on a proposal to approve a new sub-advisory agreement with
Chartwell is expected to be scheduled for September 16, 2013. Any
solicitation of proxies by FAV in connection with this shareholder
meeting will only be made pursuant to proxy materials filed with
the U.S. Securities and Exchange Commission (“SEC”) under
applicable federal securities laws. There can be no assurance that
the necessary percentage of the shareholders of FAV will vote to
approve Chartwell as the new investment sub-advisor.
The Board also approved certain changes to the Fund’s investment
strategies as described briefly below and more fully in the Fund’s
proxy statement filed with SEC, although such changes do not
require shareholder approval. Additionally, the Fund’s Board
approved a change in the Fund’s name to First Trust Dividend and
Income Fund, which will be effective July 1, 2013. We do not
anticipate that the Fund’s ticker symbol or CUSIP will change.
The Fund is a diversified, closed-end management investment
company that seeks to provide a high level of current income and
gains and, to a lesser extent, capital appreciation. The Fund’s
investment objectives are not changing. The Board of the Fund
approved a change in the Fund’s investment strategy so that the
Fund will invest at least 80% of its managed assets in a
diversified portfolio of dividend-paying equity securities, debt
securities and senior secured floating rate loans that offer the
potential for attractive income and/or capital appreciation. The
Fund currently seeks to achieve its investment objectives by
investing at least 80% of its managed assets in a diversified
portfolio of dividend-paying multi-cap equity securities. These
changes will be described more fully in the Fund’s proxy statement
filed with the SEC, although, as noted above, they do not require
shareholder approval. The investment strategy changes are
non-fundamental and are to be effective upon 60 days’ prior written
notice to shareholders, which we anticipate will be on or around
September 5, 2013. In addition, the Fund intends to utilize
leverage.
FTA has served as the Fund’s investment advisor since the Fund’s
inception. FTA along with its affiliate, First Trust Portfolios
L.P., are privately-held companies which provide a variety of
investment services, including asset management and financial
advisory services, with collective assets under management or
supervision of approximately $70 billion as of May 31, 2013,
through unit investment trusts, exchange-traded funds, closed-end
funds, mutual funds and separately managed accounts.
Chartwell will serve as the Fund’s investment sub-advisor and is
an employee-owned investment firm focusing on institutional,
sub-advisory, and private client relationships. The firm is a
research-based equity and fixed-income manager with a disciplined,
team-oriented investment process. At May 31, 2013, Chartwell had
approximately $6.3 billion in assets under management.
In connection with the solicitation of proxies to approve the
new sub-advisory agreement, the Fund will file a proxy statement.
Because the proxy statement will contain important information, the
Fund’s shareholders are urged to read the proxy statement and
accompanying materials carefully when they receive them. The Fund’s
shareholders will also be able to obtain copies of these documents
and other transaction-related documents, when available, by calling
FTA toll-free at 800-621-1675. When filed with the SEC, the proxy
statement will be available free of charge at the SEC’s website,
www.sec.gov. The foregoing is not an offer to sell, nor a
solicitation of an offer to buy, shares of the Fund, nor is it a
solicitation of any proxy.
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
www.ftportfolios.com or by calling 1-800-988-5891.
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