FIRST TRUST ADVISORS L.P. LEVERAGED FINANCE INVESTMENT TEAM Q2 2016
FIRST TRUST ADVISORS L.P. LEVERAGED FINANCE INVESTMENT TEAM First Trust Leveraged Finance Investment Team Strengths Experienced management team Investment committee approach to decision making/risk management Market access Consistent and disciplined investment process focusing on: High level of portfolio diversification across industries and issuers Relative value Asset liquidity Experienced Credit Team Senior credit analysts with experience through several credit cycles Bankruptcy and workout experience Market Access Long standing relationships with agent banks were formed at one of the largest leveraged finance asset managers Asset base allows team to be nimble in right-sizing positions through time Institutional Approach to Portfolio Construction and Risk Management Portfolio construction emphasizes relative value across investment universe Risk management focuses both on absolute credit risk and relative market risk A relatively conservative approach emphasizing a quality bias and extensive industry and issuer diversification levels First Trust Advisors Leveraged Finance Assets Under Management or Supervision: $2.2bil (June 2016) High-Yield Bonds $978.9 Bank Loans* $1,242.9 Exchange-Traded Funds (ETFs) $1,485.7 Unit Investment Trusts (UITs)** $35.1 Closed-End Funds $ 520.9 Open-End Funds $180.1 *First Trust Short Duration High Income Fund is included under retail bank loan assets, although the fund holds some high yield assets as well. Bank loans are usually rated below investment grade but may also be unrated. As a result, the risks associated with these loans are similar to the risks of high yield fixed-income investments. High-yield securities tend to be less liquid than higher quality debt and are subject to greater market fluctuations and risk of loss than securities with higher ratings. **UITs are not managed, but are supervised, by the First Trust Leveraged Finance Team. You should consider an investment s objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com to obtain a prospectus which contains this and other information about a portfolio. Read it carefully before you invest. 2
FIRST TRUST S DISCIPLINED APPROACH THE INVESTMENT PROCESS IS A BALANCED COMBINATION OF BOTTOM-UP FUNDAMENTAL CREDIT ANALYSIS AND PORTFOLIO CONSTRUCTION. Asset Selection involves evaluation of the macro-economy, industry trends, consistency of cash flows, collateral coverage, and management quality. Portfolio Construction focuses on relative value within a risk management framework. 3
FIRST TRUST ADVISORS EXPERIENCED PORTFOLIO MANAGEMENT Portfolio Managers William Housey, CFA Senior Vice President, Senior Portfolio Manager Background Senior Portfolio Manager for the Leveraged Finance Investment Team 20 years of investment experience Previously served as Executive Director and Co-Portfolio Manager at Morgan Stanley/Van Kampen Extensive experience in the portfolio management of both leveraged and unleveraged credit products including senior loans, high-yield bonds, credit derivatives and corporate restructurings B.S. in Finance from Eastern Illinois University M.B.A. in Finance and Management & Strategy from Northwestern University s Kellogg School of Business FINRA Series 7, Series 52 and Series 63 licenses. CFA Charterholder and member of the CFA Institute and the CFA Society of Chicago Serves on the Village of Glen Ellyn, IL Police Pension Board Scott D. Fries, CFA Senior Vice President, Portfolio Manager Portfolio Manager in the Leveraged Finance Investment Team 22 years of investment industry experience Previously served as Executive Director and Co-Portfolio Manager of Institutional Separately Managed Accounts at Morgan Stanley/Van Kampen B.A. in International Business from Illinois Wesleyan University M.B.A. in Finance from DePaul University CFA Charterholder and member of the CFA Institute and the CFA Society of Chicago Peter Fasone, CFA, CPA Vice President, Portfolio Manager Portfolio Manager in the Leveraged Finance Investment Team 30 years of industry experience Previously served as Senior Global Credit Analyst with BNP Paribas Asset Management and Portfolio Manager and Senior Analyst for Fortis Investments B.S. from Arizona State University M.B.A. degree from DePaul University's Kellstadt Graduate School of Business. CFA Charterholder and member of the CFA Institute and the CFA Society of Chicago Certified Public Accountant designation 4
FIRST TRUST LEVERAGED FINANCE ORGANIZATIONAL STRUCTURE FIRST TRUST ADVISORS LEVERAGED FINANCE INVESTMENT TEAM Portfolio Management Credit Analytics Operations William Housey, CFA Senior Portfolio Manager 20 years experience Scott Fries, CFA Portfolio Manager 22 years experience Peter Fasone, CFA, CPA Portfolio Manager 30 years experience Orlando Purpura, CFA, CMT Chief Credit Officer 26 years experience Energy, Finance, Tech Greg Olsen, CFA Senior Credit Analyst 23 years experience Gaming, Food, Leisure, Cable Brian Kessler, CFA Credit Analyst 12 years experience Jeff Scott, CFA Deputy Credit Officer 26 years experience Healthcare, Retail Peter Fasone, CFA, CPA 30 years experience Chemicals, Telecom, Paper/Pack Jeffrey Johnson Associate Analyst 2 years experience William Housey, CFA 20 years experience Utilities, Airlines Scott Fries, CFA 22 years experience Auto, Publishing, Real Estate, Finance Luke Lamar Associate Analyst Ryan Kommers Director of Operations 19 years experience Christopher Bradley Operations Associate 3 years experience Trading Andy Rybak, CFA Head Trader 16 years experience Austin Schultz Associate Analyst Daniel Lindquist Associate Analyst Institutional Sales Senior Portfolio Consultant Howard Tiffen* 40 years experience Paul McGinn, Craig Pierce, Alex Brozyna, Eric Stoiber, Brendan Mahoney 866-848-9727 Institutionalinvestors@ftportfolios.com *Howard Tiffen is not an employee of First Trust Advisors L.P. 5
FIRST TRUST ADVISORS LEVERAGED FINANCE INVESTMENT TEAM BIOGRAPHIES William Housey, CFA Senior Vice President, Senior Portfolio Manager Mr. Housey joined First Trust Advisors L.P. in June 2010 as the Senior Portfolio Manager for the Leveraged Finance Investment Team and has 20 years of investment experience. Prior to joining First Trust, Mr. Housey was at Morgan Stanley Investment Management and its wholly owned subsidiary, Van Kampen Funds, Inc. for 11 years where he last served as Executive Director and Co-Portfolio Manager. Mr. Housey has extensive experience in the portfolio management of both leveraged and unleveraged credit products, including senior loans, high-yield bonds, credit derivatives and corporate restructurings. Mr. Housey received a B.S. in Finance from Eastern Illinois University and an M.B.A. in Finance as well as Management and Strategy from Northwestern University s Kellogg School of Business. He also holds the FINRA Series 7, Series 52 and Series 63 licenses. Mr. Housey also holds the Chartered Financial Analyst designation. He is a member of the CFA Institute and the CFA Society of Chicago. Mr. Housey also serves on the Village of Glen Ellyn, IL Police Pension Board. Scott D. Fries, CFA Senior Vice President, Portfolio Manager Mr. Fries joined First Trust Advisors L.P. in June 2010 as Portfolio Manager in the Leveraged Finance Investment Team and has 22 years of investment industry experience. Prior to joining First Trust, Mr. Fries spent 15 years at Morgan Stanley/Van Kampen Funds, Inc. where he most recently served as Executive Director and Co-Portfolio Manager of Institutional Separately Managed Accounts. Mr. Fries received a B.A. in International Business from Illinois Wesleyan University and an M.B.A. in Finance from DePaul University. Mr. Fries holds the Chartered Financial Analyst designation. He is a member of the CFA Institute and the CFA Society of Chicago. Peter Fasone, CFA, CPA Vice President, Portfolio Manager Mr. Fasone joined First Trust Advisors L.P. in December 2011. He serves as a Portfolio Manager and has 30 years of industry experience, most recently as Senior Global Credit Analyst with BNP Paribas Asset Management. Since 1996, his focus has been primarily on investing in high yield and investment grade bonds for total return and structured credit portfolios. Prior to BNP, Mr. Fasone served as Portfolio Manager and Senior Analyst for Fortis Investments. From 2001 to 2008 he was Vice President and Senior Analyst at ABN AMRO Asset Management where he assumed a leadership role in designing and implementing a disciplined investment process for ABN's $1 billion global high yield fund. Mr. Fasone received a B.S. degree from Arizona State University and an M.B.A. degree from DePaul University's Kellstadt Graduate School of Business. He holds the Chartered Financial Analyst designation and a Certified Public Accountant designation. He is a member of the CFA Institute and the CFA Society of Chicago. Orlando Purpura, CFA, CMT Senior Vice President, Chief Credit Officer Mr. Purpura joined First Trust Advisors L.P. in May 2013 as Chief Credit Officer of the Leveraged Finance Investment Team and has 26 years of investment industry experience. Prior to joining First Trust, Mr. Purpura was at Allstate Investments LLC where he served as Portfolio Manager in the Equity Special Situations Group that invested in the public equity of companies in various stages of distress. Additionally, he also was a Portfolio Manager in the Private Placement Group where he completed corporate restructurings and workouts for troubled credits held in the investment portfolio. Prior to Allstate Investments, Orlando was a founding partner at Tall Tree Investment Management LLC, an institutional money manager that focuses on Senior Secured Bank Loans in structured finance vehicles. Before moving to TallTree, Orlando was a Senior Distressed Debt Analyst and Workout specialist at Van Kampen Investments where he specialized in leading the credit oversight and trading strategy for workouts and restructurings across various industries. In the early 1990s, Orlando began his credit career at Sanwa Business Credit Corporation that specialized in below investment grade non-traditional lending and leasing. Mr. Purpura received a B.S. in Finance from Elmhurst College and an M.B.A. in Finance from DePaul University. Mr. Purpura holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Chicago. He also holds the Chartered Market Technician designation and is a member of the Market Technicians Association, Chicago Chapter. 6
FIRST TRUST ADVISORS LEVERAGED FINANCE INVESTMENT TEAM BIOGRAPHIES Gregory Olsen, CFA Senior Vice President, Senior Credit Analyst Mr. Olsen is a Senior Credit Analyst and Portfolio Specialist for the Leveraged Finance Investment Team at First Trust Advisors L.P. and has 23 years of investment experience. Mr. Olsen served most recently as Executive Director and Portfolio Specialist in leveraged finance for Morgan Stanley/Van Kampen. His professional experience is concentrated within the credit markets including senior secured loans, high-yield bonds, and convertible securities. Mr. Olsen has traveled extensively throughout the world to work with a broad range of institutional and retail clients. His client experience spans sovereign wealth funds, pension plans, foundations, corporations, family offices, high net worth retail, and traditional retail investors in North America, Europe and Asia. Mr. Olsen received a B.S. in business administration from Illinois Wesleyan University and an M.B.A. with a concentration in finance from DePaul University. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Chicago. Jeffrey Scott, CFA Vice President, Deputy Credit Officer Mr. Scott is Deputy Credit Officer for the Leveraged Finance Investment Team at First Trust Advisors L.P. He has 26 years of experience in the investment management industry and has extensive experience in credit analysis, product development, and product management. Prior to joining First Trust Advisors, Jeff served as an Assistant Portfolio Manager and as a Senior Credit Analyst for Morgan Stanley/Van Kampen from October 2008 to June 2010. As Assistant Portfolio Manager, Jeff served on a team that managed over $4.0 billion of Senior Loan assets in three separate funds: Van Kampen Senior Loan Fund; Van Kampen Senior Income Trust; and Van Kampen Dynamic Credit Opportunities Fund. His responsibilities included assisting with portfolio construction, buy and sell decision making, and monitoring fund liquidity and leverage. Mr. Scott earned a B.S. in finance and economics from Elmhurst College and an M.B.A. with specialization in analytical finance and econometrics and statistics from the University of Chicago. He also holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Chicago. Andy Rybak, CFA Vice President, Head Trader Mr. Rybak is the Trader for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Rybak has 16 years of investment industry experience. Prior to joining First Trust, he served as a Senior Associate and team leader overseeing Portfolio Management Support within the Morgan Stanley / Van Kampen Senior Loan Operations Group. Previously at Morgan Stanley / Van Kampen, he worked in the Financial Control group, as well as in the Non-Financial Data and Reporting Group. Mr. Rybak has a B.S. in marketing and an M.B.A. in finance from Lewis University. Mr. Rybak holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Chicago. Brian Kessler, CFA Vice President, Credit Analyst Mr. Kessler is a Credit Analyst for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Kessler is a, providing research support to the team. He has approximately 12 years of financial experience, all of which have been at First Trust. He received his B.A. from Western Michigan University. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA Society of Chicago. 7
FIRST TRUST ADVISORS LEVERAGED FINANCE INVESTMENT TEAM BIOGRAPHIES Jeffrey Johnson Associate, Assoc. Analyst Mr. Johnson is an Associate Analyst for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Johnson specializes in research and data collection. He began his career at First Trust in June 2014. Mr. Johnson graduated from Illinois Wesleyan University, where he received a B.A. in Business Administration, specializing in Finance. Ryan Kommers Vice President, Director of Operations Mr. Kommers is Director of Operations for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Kommers has 19 years of investment industry experience. Prior to joining First Trust, he served as Vice President, co-manager and compliance officer of structured products in the Senior Loan Group at Morgan Stanley / Van Kampen. Prior to his role as Co-manager of Operations, Mr. Kommers was an operations specialist for the Senior Loan Group. Mr. Kommers received a B.A. in history from University of Illinois. Christopher Bradley Associate, Operations Associate Mr. Bradley is an Operations Associate for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Bradley specializes in trade settlement and data recon. He began his career at First Trust in June 2013. Mr. Bradley graduated from Wheaton College, where he received a B.A. in Economics. Luke Lamar Associate, Assoc. Analyst Mr. Lamar is an Associate Analyst for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Lamar specializes in research and data collection. He began his career at First Trust in April 2016. Mr. Lamar graduated from Truman State University, where he received a B.S. in Finance. Austin Schultz Associate, Assoc. Analyst Mr. Schultz is an Associate Analyst for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Schultz specializes in research and data collection. He began his career at First Trust in April 2016. Mr. Schultz graduated from Wheaton College, where he received a B.A. in Business and Economics. Daniel Lindquist Associate, Assoc. Analyst Mr. Lindquist is an Associate Analyst for the Leveraged Finance Investment Team at First Trust Advisors L.P. Mr. Lindquist specializes in research and data collection. He began his career at First Trust in June 2016. Mr. Lindquist graduated from Taylor University, where he received a B.S. in Finance and Accounting/Systems. Howard Tiffen Senior Portfolio Consultant Mr. Tiffen was engaged by First Trust Advisors L.P. in May 2016 as Senior Portfolio Consultant for the Leveraged Finance Investment Team. Howard has been involved in the floating rate capital markets in Europe, Asia and North America for over 40 years. Mr. Tiffen participates in the Team s credit processes in an advisory capacity and supports the presentation responsibilities of the First Trust Leveraged Finance portfolio management team. Prior to his engagement with First Trust, Mr. Tiffen held an advisory and marketing role within the Eaton Vance Bank Loan Team and previously had portfolio management responsibilities for bank loan funds at Continental Bank, Bank of America, Pilgrim Investments (now Voya), Van Kampen (now Invesco) and Morgan Stanley Investment Management since 1987. He holds a BS from Northwestern University and AM from University of Chicago. Mr. Tiffen is not an employee of First Trust Advisors L.P. 8
1-800-621-1675 www.ftadvisors.com 9