October Distribution Update for First Trust High Yield Fund

Regular Monthly Distribution Declared by the Fund

The First Trust High Yield Opportunities 2027 Term Fund (NYSE: FTHY) has announced its monthly common share distribution of $0.13 per share. This distribution is scheduled for payment, bringing good news for shareholders as they anticipate their returns on investment.

Details of the Distribution

This upcoming distribution will be payable on a date that aligns with traditional investment practices. Shareholders who are on record as of a specific date will be eligible to receive this payment. It's important for shareholders to mark these dates as they manage their investments and expectations for income.

Distribution Amount and Historical Context

With a distribution amount set at $0.13 per share, the fund aims to provide consistent income to its investors. The distribution rate, based on the Fund’s net asset value (NAV) as of the preceding month, stands out at 10.02%. This figure reflects the fund's commitment to delivering shareholder value within the market.

Income and Tax Implications

This monthly distribution is structured to consist of the Fund's net investment income, along with a return of capital. Additionally, net short-term realized capital gains may be included as part of this distribution. At the end of the fiscal year, a detailed breakdown of the distribution sources will be provided, ensuring transparency for investors regarding potential tax obligations.

Fund's Investment Objective

The overarching goal of the Fund is to generate current income for its investors. To achieve this, the Fund typically invests at least 80% of its managed assets in high-yield debt securities that are rated below investment grade. These investments provide the potential for higher returns but also come with increased risks.

High Yield Debt Securities Explained

High-yield securities, often termed "junk bonds," are considered more speculative compared to their investment-grade counterparts. They include corporate debt obligations and senior floating-rate loans. Investing in these securities presents a range of possibilities and risks that investors must carefully evaluate.

Understanding Market Risks

The Fund is subject to various market risks, including fluctuations due to economic conditions and geopolitical factors. Investors should be aware that changes in interest rates, local events, and broader market dynamics can impact the performance of their investments.

Potential for Increased Volatility

Current economic conditions, as the Federal Reserve adjusts interest rates, may affect the performance of high-yield securities. Market dynamics influenced by international tensions or economic downturns can further contribute to volatility, making it crucial for investors to stay informed about their investments.

Investment Strategies and Future Outlook

The Fund aims to maintain a stable monthly distribution while navigating the complexities of the investment landscape. This approach can positively influence the market price of its shares. Nonetheless, it does not alter the Fund’s fundamental investment strategies.

As we look to the future, the Fund’s structured approach to income generation positions it well to capitalize on market opportunities while managing associated risks. Achieving the Fund’s investment objectives requires careful monitoring and adaptive strategies by its management team.

Frequently Asked Questions

What is the amount of the monthly distribution for October?

The Fund has declared a distribution of $0.13 per share for October.

When will the distribution be paid?

The distribution is scheduled to be payable in October 2024 to the shareholders of record as of October 1, 2024.

What does the distribution consist of?

The distribution consists of net investment income, return of capital, and may include short-term realized capital gains.

Why is the Fund focusing on high-yield debt securities?

The Fund invests in high-yield debt to achieve its objective of generating current income, balancing the potential for return with associated risks.

How does market volatility impact the Fund?

Market volatility can affect the value of investments in the Fund and influence the performance of high-yield securities, necessitating careful management and strategy adjustments.

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