First Trust Short Duration High Income Fund
Portfolio of Investments
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS – 58.7% | ||||||||
Application Software – 10.1% | ||||||||
$152,087 | ConnectWise, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 09/30/28 | $149,330 | ||||
841,449 | Epicor Software Corp., First Lien Term Loan C, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.68% | 07/30/27 | 837,158 | ||||
1,619,828 | Gainwell Acquisition Corp. (fka Milano), Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.00%, 0.75% Floor | 9.34% | 10/01/27 | 1,595,936 | ||||
760,229 | Greeneden U.S. Holdings II, LLC (Genesys Telecommunications Laboratories, Inc.), Initial Dollar Term Loan, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.75% Floor | 9.43% | 12/01/27 | 760,374 | ||||
422,164 | Hyland Software, Inc., Term Loan B, 1 Mo. CME Term SOFR + 3.50%, 0.75% Floor | 8.93% | 07/01/24 | 421,373 | ||||
118,950 | Informatica Corp., Initial Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.18% | 10/29/28 | 118,523 | ||||
356,054 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), 2020 June New Term Loan, 1 Mo. CME Term SOFR + 3.75%, 1.00% Floor | 9.07% | 09/15/24 | 356,646 | ||||
1,035,284 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), 2nd Lien Term Loan, 1 Mo. CME Term SOFR + 6.25%, 0.00% Floor | 11.57% | 02/23/29 | 904,258 | ||||
417,686 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), Initial Term Loan, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.00% Floor | 9.18% | 09/13/24 | 418,357 | ||||
23,364 | ION Trading Technologies Limited, Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.75%, 0.00% Floor | 10.09% | 04/01/28 | 22,884 | ||||
1,402,475 | LogMeIn, Inc. (GoTo Group, Inc.), Term Loan B, 3 Mo. CME Term SOFR + 4.75%, 0.00% Floor | 10.27% | 08/31/27 | 897,899 | ||||
824,201 | McAfee Corp. (Condor Merger Sub, Inc.), Tranche B-1 Term Loan, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.50% Floor | 8.96% | 02/28/29 | 799,767 | ||||
132,781 | N-Able, Inc., Term Loan B, 3 Mo. CME Term SOFR + 3.00%, 0.50% Floor | 8.48% | 07/19/28 | 132,615 | ||||
799,415 | Open Text Corporation (GXS), New Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.92% | 01/31/30 | 801,665 | ||||
431,126 | Open Text Corporation (GXS), Term Loan B, 1 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.07% | 05/30/25 | 432,295 | ||||
353,983 | RealPage, Inc., Second Lien Term Loan, 1 Mo. CME Term SOFR + 6.50%, 0.75% Floor | 11.93% | 04/22/29 | 352,479 | ||||
700,112 | RealPage, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.43% | 04/24/28 | 689,026 | ||||
1,171,684 | SolarWinds Holdings, Inc., Extended Term Loan B, 1 Mo. CME Term SOFR + 3.75%, 0.00% Floor | 9.07% | 02/17/27 | 1,173,770 | ||||
717,417 | Ultimate Kronos Group (UKG, Inc.), 2021 Term Loan, 3 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.62% | 05/03/26 | 714,569 | ||||
11,578,924 | ||||||||
Asset Management & Custody Banks – 1.1% | ||||||||
771,081 | Edelman Financial Engines Center, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.75% Floor | 9.18% | 04/07/28 | 761,443 | ||||
494,486 | Edelman Financial Engines Center, LLC, Term Loan Second Lien, 1 Mo. CME Term SOFR + CSA + 6.75%, 0.00% Floor | 12.18% | 07/20/26 | 483,669 | ||||
1,245,112 | ||||||||
Broadcasting – 1.9% | ||||||||
104,062 | E.W. Scripps Company, Tranche B-3 Term Loan, 1 Mo. CME Term SOFR + 2.75%, 0.75% Floor | 8.18% | 01/07/28 | 102,430 | ||||
1,130,461 | Gray Television, Inc., Term Loan E, 1 Mo. CME Term SOFR + CSA + 2.50%, 0.00% Floor | 7.73% | 01/02/26 | 1,122,062 | ||||
406,621 | Nexstar Broadcasting, Inc., Incremental Term Loan B-4, 1 Mo. CME Term SOFR + CSA + 2.50%, 0.00% Floor | 7.93% | 09/19/26 | 407,096 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||||||
Broadcasting (Continued) | ||||||||
$663,366 | Sinclair Television Group, Inc., Term Loan B-2, 1 Mo. CME Term SOFR + CSA + 2.50%, 0.00% Floor | 7.93% | 09/30/26 | $593,298 | ||||
2,224,886 | ||||||||
Building Products – 0.1% | ||||||||
100,728 | Hunter Douglas, Inc. (Solis), Term Loan B, 3 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.67% | 02/28/29 | 96,220 | ||||
Cable & Satellite – 1.2% | ||||||||
835,019 | Cablevision (aka CSC Holdings, LLC), March 2017 Term Loan B-1, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 7.59% | 07/17/25 | 799,739 | ||||
1,593 | Charter Communications Operating, LLC, Term Loan B1, 1 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.07% | 04/30/25 | 1,593 | ||||
600,660 | Charter Communications Operating, LLC, Term Loan B1, 3 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.12% | 04/30/25 | 600,723 | ||||
1,402,055 | ||||||||
Casinos & Gaming – 0.5% | ||||||||
468,956 | Golden Nugget, Inc. (Fertitta Entertainment, LLC), Initial Term Loan B, 1 Mo. CME Term SOFR + 4.00%, 0.50% Floor | 9.32% | 01/27/29 | 464,719 | ||||
82,290 | Scientific Games Holdings L.P. (Scientific Games Lottery), Initial Dollar Term Loan, 3 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.77% | 04/04/29 | 81,396 | ||||
546,115 | ||||||||
Commercial Printing – 0.6% | ||||||||
667,551 | Multi-Color Corp. (LABL, Inc.), Initial Dollar Term Loan, 1 Mo. CME Term SOFR + CSA + 5.00%, 0.50% Floor | 10.42% | 10/29/28 | 665,174 | ||||
Education Services – 0.1% | ||||||||
63,871 | Ascensus Holdings, Inc. (Mercury), First Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 08/02/28 | 63,032 | ||||
Electric Utilities – 2.6% | ||||||||
2,995,619 | PG&E Corp., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.43% | 06/23/25 | 2,994,795 | ||||
Electronic Equipment & Instruments – 0.6% | ||||||||
275,771 | Chamberlain Group, Inc. (Chariot), Term Loan B, 1 Mo. CME Term SOFR + 3.25%, 0.50% Floor | 8.67% | 11/03/28 | 272,190 | ||||
493,592 | Verifone Systems, Inc., Term Loan B, 3 Mo. LIBOR + 4.00%, 0.00% Floor | 9.48% | 08/20/25 | 468,569 | ||||
740,759 | ||||||||
Environmental & Facilities Services – 0.3% | ||||||||
383,259 | GFL Environmental, Inc., Extended Term Loan B, 3 Mo. CME Term SOFR + 3.00%, 0.50% Floor | 8.47% | 05/31/27 | 384,282 | ||||
Food Distributors – 0.2% | ||||||||
271,211 | US Foods, Inc., Incremental B-2019 Term Loan, 1 Mo. CME Term SOFR + 2.00%, 0.00% Floor | 7.32% | 08/31/26 | 271,622 | ||||
Health Care Equipment – 0.0% | ||||||||
32,856 | Embecta Corp., Initial Term Loan, 6 Mo. CME Term SOFR + 3.00%, 0.50% Floor | 8.34% | 03/31/29 | 32,708 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||||||
Health Care Facilities – 0.2% | ||||||||
$187,892 | Ardent Health Services, Inc. (AHP Health Partners, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 08/24/28 | $187,963 | ||||
Health Care Services – 1.6% | ||||||||
801,088 | ADMI Corp. (Aspen Dental), 2020 Incremental Term Loan B2, 1 Mo. CME Term SOFR + CSA + 3.38%, 0.50% Floor | 8.81% | 12/23/27 | 759,604 | ||||
619,590 | CHG Healthcare Services, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.68% | 09/30/28 | 619,129 | ||||
197,789 | DaVita, Inc., Term Loan B, 1 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.18% | 08/12/26 | 195,795 | ||||
218,251 | ExamWorks Group, Inc. (Electron Bidco), Term Loan B, 1 Mo. CME Term SOFR + 3.00%, 0.50% Floor | 8.32% | 10/29/28 | 217,978 | ||||
1,792,506 | ||||||||
Health Care Supplies – 0.9% | ||||||||
987,500 | Medline Borrower, L.P. (Mozart), Initial Dollar Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.68% | 10/21/28 | 978,691 | ||||
Health Care Technology – 9.3% | ||||||||
1,739,964 | athenahealth, Inc. (Minerva Merger Sub, Inc.), Term Loan B, 1 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.81% | 02/15/29 | 1,692,994 | ||||
434,992 | Ciox Health (Healthport/CT Technologies Intermediate Holdings, Inc.), New Term Loan B, 1 Mo. CME Term SOFR + 4.25%, 0.75% Floor | 9.68% | 12/16/25 | 416,958 | ||||
325,905 | Ensemble RCM, LLC (Ensemble Health), Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.75%, 0.00% Floor | 9.22% | 08/01/26 | 325,981 | ||||
1,344,118 | Mediware (Wellsky/Project Ruby Ultimate Parent Corp.), Term Loan B, 1 Mo. CME Term SOFR + 3.25%, 0.75% Floor | 8.57% | 03/10/28 | 1,329,104 | ||||
985,190 | Navicure, Inc. (Waystar Technologies, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.43% | 10/23/26 | 986,426 | ||||
3,380,081 | Verscend Technologies, Inc. (Cotiviti), New Term Loan B-1, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.43% | 08/27/25 | 3,382,548 | ||||
2,609,174 | Zelis Payments Buyer, Inc., New Term Loan B-1, 1 Mo. CME Term SOFR + 3.50%, 0.00% Floor | 8.93% | 09/30/26 | 2,610,270 | ||||
10,744,281 | ||||||||
Hotels, Resorts & Cruise Lines – 0.2% | ||||||||
264,984 | Four Seasons Holdings, Inc., New Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.67% | 11/30/29 | 265,924 | ||||
Industrial Machinery & Supplies & Components – 1.0% | ||||||||
308,252 | Copeland (Emerald Debt Merger Sub, LLC/EMRLD), Inital Term Loan, 3 Mo. CME Term SOFR + 3.00%, 0.00% Floor | 8.26% | 05/31/30 | 308,832 | ||||
98,113 | Filtration Group Corp., 2021 Incremental Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 10/21/28 | 98,066 | ||||
311,109 | Filtration Group Corp., 2023 Extended Term Loan, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.68% | 10/21/28 | 312,469 | ||||
434,809 | TK Elevator Newco GMBH (Vertical U.S. Newco, Inc.), New Term Loan B1 (USD), 6 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 9.38% | 07/31/27 | 433,750 | ||||
1,153,117 | ||||||||
Insurance Brokers – 8.4% | ||||||||
1,483,142 | Alliant Holdings I, LLC, Term Loan B-5, 1 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.72% | 11/06/27 | 1,482,060 | ||||
500,000 | Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer, Term Loan B-4, 1 Mo. LIBOR + 3.50%, 0.50% Floor | 9.03% | 11/05/27 | 499,337 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||||||
Insurance Brokers (Continued) | ||||||||
$246,119 | AmWINS Group, Inc., Feb. 2023 Incremental Term Loan, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.75% Floor | 8.18% | 02/19/28 | $246,119 | ||||
1,000,000 | AmWINS Group, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.25%, 0.75% Floor | 7.68% | 02/19/28 | 997,930 | ||||
330,707 | AssuredPartners, Inc., 2021 Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 02/13/27 | 329,190 | ||||
345,584 | AssuredPartners, Inc., Incremental Term Loan 2022, 1 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.82% | 02/13/27 | 344,288 | ||||
492,347 | AssuredPartners, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.00% Floor | 8.93% | 02/12/27 | 489,962 | ||||
1,352,470 | BroadStreet Partners, Inc., Initial Term Loan B, 1 Mo. CME Term SOFR + 3.00%, 0.00% Floor | 8.32% | 01/27/27 | 1,347,236 | ||||
81,868 | BroadStreet Partners, Inc., Term Loan B-3, 1 Mo. CME Term SOFR + 4.00%, 0.00% Floor | 9.32% | 01/26/29 | 81,714 | ||||
1,860,736 | HUB International Limited, 2023 Refinancing Term Loan B-5, 3 Mo. CME Term SOFR + 4.25%, 0.75% Floor | 9.58% | 06/08/30 | 1,870,672 | ||||
206,654 | HUB International Limited, Term Loan B4, 3 Mo. CME Term SOFR + 4.00%, 0.75% Floor | 9.07% | 11/10/29 | 207,320 | ||||
149,359 | IMA Financial Group, Inc., Incremental Term Loan B-2, 1 Mo. CME Term SOFR + 4.25%, 0.50% Floor | 9.66% | 11/01/28 | 149,079 | ||||
836,945 | OneDigital Borrower, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.67% | 11/16/27 | 836,426 | ||||
130,157 | Ryan Specialty Group, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.75% Floor | 8.42% | 09/01/27 | 130,320 | ||||
659,030 | USI, Inc. (fka Compass Investors, Inc.), 2022 New Term Loan, 3 Mo. CME Term SOFR + 3.75%, 0.50% Floor | 8.99% | 11/30/29 | 659,775 | ||||
9,671,428 | ||||||||
Integrated Telecommunication Services – 1.6% | ||||||||
1,086,358 | Numericable (Altice France S.A. or SFR), Term Loan B-12, 3 Mo. LIBOR + 3.69%, 0.00% Floor | 9.26% | 01/31/26 | 968,895 | ||||
262,243 | Numericable (Altice France S.A. or SFR), Term Loan B-13, 3 Mo. LIBOR + 4.00%, 0.00% Floor | 9.32% | 08/14/26 | 233,534 | ||||
279,634 | Zayo Group Holdings, Inc., Incremental Term Loan B-2, 1 Mo. CME Term SOFR + 4.33%, 0.50% Floor | 9.64% | 03/09/27 | 216,018 | ||||
531,240 | Zayo Group Holdings, Inc., Initial Dollar Term Loan, 1 Mo. CME Term SOFR + 3.00%, 0.00% Floor | 8.43% | 03/09/27 | 407,376 | ||||
1,825,823 | ||||||||
IT Consulting & Other Services – 0.4% | ||||||||
500,000 | CDK Global (Central Parent, Inc.), Term Loan B, 3 Mo. CME Term SOFR + 4.25%, 0.50% Floor | 9.49% | 07/06/29 | 500,805 | ||||
Life Sciences Tools & Services – 0.5% | ||||||||
520,830 | WCG Purchaser Corp. (WIRB-Copernicus Group), Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.00%, 1.00% Floor | 9.43% | 01/08/27 | 515,427 | ||||
Managed Health Care – 0.2% | ||||||||
265,291 | Multiplan, Inc. (MPH), Term Loan B, 3 Mo. LIBOR + 4.25%, 0.50% Floor | 9.73% | 08/31/28 | 250,534 | ||||
Metal, Glass & Plastic Containers – 2.1% | ||||||||
2,362,396 | Berry Global, Inc., Term Loan Z, 3 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.29% | 07/01/26 | 2,363,411 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||||||
Office Services & Supplies – 1.1% | ||||||||
$1,249,285 | Dun & Bradstreet Corp., New Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.17% | 02/08/26 | $1,249,479 | ||||
Other Specialty Retail – 0.4% | ||||||||
496,441 | Petco Health and Wellness Company, Inc., Initial Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.75% | 03/03/28 | 495,464 | ||||
Paper & Plastic Packaging Products & Materials – 0.8% | ||||||||
71,594 | Graham Packaging Company, L.P., Term Loan B, 1 Mo. CME Term SOFR + 3.00%, 0.75% Floor | 8.43% | 08/04/27 | 71,577 | ||||
360,699 | Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings), Term Loan B-2, 1 Mo. CME Term SOFR + 3.25%, 0.00% Floor | 8.68% | 02/05/26 | 360,764 | ||||
315,131 | Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings), Tranche B-3 U.S. Term Loan, 1 Mo. CME Term SOFR + 3.25%, 0.50% Floor | 8.68% | 09/20/28 | 314,974 | ||||
130,021 | Reynolds Consumer Products, LLC, Initial Term Loan, 1 Mo. CME Term SOFR + 1.75%, 0.00% Floor | 7.17% | 02/04/27 | 129,916 | ||||
877,231 | ||||||||
Pharmaceuticals – 0.5% | ||||||||
87,449 | IQVIA, Inc. (Quintiles), Term Loan B3, 3 Mo. LIBOR + 1.75%, 0.00% Floor | 7.29% | 06/11/25 | 87,593 | ||||
474,093 | Parexel International Corp. (Phoenix Newco), First Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.68% | 11/15/28 | 472,735 | ||||
560,328 | ||||||||
Property & Casualty Insurance – 0.7% | ||||||||
752,037 | Sedgewick Claims Management Services, Inc., 2023 Term Loan B, 1 Mo. CME Term SOFR + 3.75%, 0.00% Floor | 9.07% | 02/24/28 | 750,412 | ||||
Research & Consulting Services – 1.6% | ||||||||
44,021 | AlixPartners, LLP, Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.50% Floor | 8.18% | 01/31/28 | 44,013 | ||||
1,551,593 | Clarivate Analytics PLC (Camelot), Amendment No. 2 Incremental Term Loan, 1 Mo. CME Term SOFR + 3.00%, 1.00% Floor | 8.32% | 10/31/26 | 1,552,322 | ||||
107,246 | Corelogic, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 06/02/28 | 98,917 | ||||
144,889 | J.D. Power (Project Boost Purchaser, LLC), 2021 Incremental Term Loan B, 1 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.82% | 05/26/26 | 144,527 | ||||
1,839,779 | ||||||||
Restaurants – 1.4% | ||||||||
621,010 | 1011778 B.C. Unlimited Liability Company (Restaurant Brands) (aka Burger King/Tim Horton’s), Term Loan B-4, 1 Mo. LIBOR + 1.75%, 0.00% Floor | 7.18% | 11/14/26 | 618,150 | ||||
1,024,649 | IRB Holding Corp. (Arby’s/Inspire Brands), 2022 Replacement Term B Loan, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.75% Floor | 8.42% | 12/15/27 | 1,020,617 | ||||
1,638,767 | ||||||||
Security & Alarm Services – 0.4% | ||||||||
500,000 | Garda World Security Corp., Term Loan B-2, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.00% Floor | 9.64% | 10/30/26 | 500,223 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||||||
Soft Drinks & Non-alcoholic Beverages – 0.4% | ||||||||
$1,225 | Tropicana (Naked Juice LLC/Bengal Debt Merger Sub, LLC), 1st Lien Term Loan, 1 Mo. CME Term SOFR + 3.25%, 0.50% Floor | 8.67% | 01/24/29 | $1,160 | ||||
483,974 | Tropicana (Naked Juice LLC/Bengal Debt Merger Sub, LLC), 1st Lien Term Loan, 3 Mo. CME Term SOFR + 3.25%, 0.50% Floor | 8.59% | 01/24/29 | 458,401 | ||||
459,561 | ||||||||
Specialized Consumer Services – 0.1% | ||||||||
174,681 | Asurion, LLC, Second Lien Term Loan B-3, 1 Mo. CME Term SOFR + CSA + 5.25%, 0.00% Floor | 10.68% | 01/31/28 | 155,965 | ||||
Specialized Finance – 0.2% | ||||||||
261,977 | Radiate Holdco, LLC (Astound), Amendment No. 6 Term Loan, 1 Mo. CME Term SOFR + 3.25%, 0.75% Floor | 8.68% | 09/25/26 | 221,480 | ||||
Systems Software – 1.9% | ||||||||
1,344,404 | BMC Software Finance, Inc. (Boxer Parent), 2021 Replacement Dollar Term Loan, 1 Mo. CME Term SOFR + 3.75%, 0.00% Floor | 9.18% | 10/02/25 | 1,342,730 | ||||
78,437 | SS&C Technologies Holdings, Inc., Term Loan B-3, 1 Mo. CME Term SOFR + CSA + 1.75%, 0.00% Floor | 7.18% | 04/16/25 | 78,496 | ||||
74,757 | SS&C Technologies Holdings, Inc., Term Loan B-4, 1 Mo. CME Term SOFR + CSA + 1.75%, 0.00% Floor | 7.18% | 04/16/25 | 74,813 | ||||
717,584 | SS&C Technologies Holdings, Inc., Term Loan B-5, 1 Mo. CME Term SOFR + CSA + 1.75%, 0.00% Floor | 7.18% | 04/16/25 | 717,946 | ||||
2,213,985 | ||||||||
Trading Companies & Distributors – 0.7% | ||||||||
717,103 | SRS Distribution, Inc., 2021 Refinancing Term Loan, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.93% | 06/04/28 | 708,497 | ||||
42,734 | SRS Distribution, Inc., 2022 Refinancing Term Loan, 1 Mo. CME Term SOFR + 3.50%, 0.50% Floor | 8.82% | 06/04/28 | 42,227 | ||||
750,724 | ||||||||
Wireless Telecommunication Services – 2.8% | ||||||||
3,238,909 | SBA Senior Finance II, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 1.75%, 0.00% Floor | 7.07% | 04/11/25 | 3,240,092 | ||||
Total Senior Floating-Rate Loan Interests | 67,449,084 | |||||||
(Cost $68,429,476) | ||||||||
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES – 30.4% | ||||||||
Aerospace & Defense – 0.1% | ||||||||
111,000 | TransDigm, Inc. (c) | 6.75% | 08/15/28 | 111,470 | ||||
Application Software – 0.7% | ||||||||
500,000 | Alteryx, Inc. (c) | 8.75% | 03/15/28 | 486,733 | ||||
456,000 | GoTo Group, Inc. (c) | 5.50% | 09/01/27 | 262,498 | ||||
749,231 | ||||||||
Broadcasting – 3.5% | ||||||||
533,000 | Gray Television, Inc. (c) | 7.00% | 05/15/27 | 461,746 | ||||
785,000 | iHeartCommunications, Inc. | 8.38% | 05/01/27 | 537,921 | ||||
625,000 | iHeartCommunications, Inc. (c) | 4.75% | 01/15/28 | 481,226 | ||||
758,000 | Nexstar Media, Inc. (c) | 5.63% | 07/15/27 | 713,293 | ||||
63,000 | Sinclair Television Group, Inc. (c) | 5.13% | 02/15/27 | 52,738 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES (Continued) | ||||||||
Broadcasting (Continued) | ||||||||
$1,657,000 | Sirius XM Radio, Inc. (c) | 3.13% | 09/01/26 | $1,496,735 | ||||
272,000 | Univision Communications, Inc. (c) | 6.63% | 06/01/27 | 264,917 | ||||
4,008,576 | ||||||||
Building Products – 0.1% | ||||||||
98,000 | Beacon Roofing Supply, Inc. (c) | 6.50% | 08/01/30 | 98,345 | ||||
Cable & Satellite – 4.1% | ||||||||
2,712,000 | CCO Holdings, LLC/CCO Holdings Capital Corp. (c) | 5.13% | 05/01/27 | 2,546,861 | ||||
433,000 | CCO Holdings, LLC/CCO Holdings Capital Corp. (c) | 6.38% | 09/01/29 | 414,416 | ||||
200,000 | CSC Holdings, LLC (c) | 11.25% | 05/15/28 | 197,997 | ||||
3,001,000 | CSC Holdings, LLC (c) | 5.75% | 01/15/30 | 1,557,150 | ||||
4,716,424 | ||||||||
Casinos & Gaming – 1.1% | ||||||||
50,000 | Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc. (c) | 4.63% | 01/15/29 | 43,667 | ||||
860,000 | Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc. (c) | 6.75% | 01/15/30 | 738,905 | ||||
500,000 | VICI Properties L.P./VICI Note Co., Inc. (c) | 3.50% | 02/15/25 | 480,590 | ||||
1,263,162 | ||||||||
Commercial Printing – 0.2% | ||||||||
250,000 | Multi-Color Corp. (LABL, Inc.) (c) | 10.50% | 07/15/27 | 238,392 | ||||
Financial Exchanges & Data – 1.3% | ||||||||
1,500,000 | Nasdaq, Inc. | 5.35% | 06/28/28 | 1,503,445 | ||||
Health Care Facilities – 3.1% | ||||||||
342,000 | HCA, Inc. | 5.88% | 02/15/26 | 343,061 | ||||
107,000 | HCA, Inc. | 5.38% | 09/01/26 | 106,755 | ||||
676,000 | Select Medical Corp. (c) | 6.25% | 08/15/26 | 670,848 | ||||
85,000 | Tenet Healthcare Corp. | 4.88% | 01/01/26 | 82,351 | ||||
1,085,000 | Tenet Healthcare Corp. | 6.25% | 02/01/27 | 1,066,170 | ||||
358,000 | Tenet Healthcare Corp. | 5.13% | 11/01/27 | 340,309 | ||||
429,000 | Tenet Healthcare Corp. | 4.63% | 06/15/28 | 397,493 | ||||
547,000 | Tenet Healthcare Corp. | 6.13% | 10/01/28 | 521,559 | ||||
3,528,546 | ||||||||
Health Care Services – 1.0% | ||||||||
50,000 | DaVita, Inc. (c) | 4.63% | 06/01/30 | 42,710 | ||||
1,816,000 | Global Medical Response, Inc. (c) | 6.50% | 10/01/25 | 1,080,520 | ||||
1,123,230 | ||||||||
Health Care Technology – 0.8% | ||||||||
965,000 | Verscend Escrow Corp. (c) | 9.75% | 08/15/26 | 968,615 | ||||
Industrial Machinery & Supplies & Components – 0.4% | ||||||||
500,000 | Emerald Debt Merger Sub, LLC (c) | 6.63% | 12/15/30 | 497,500 | ||||
Insurance Brokers – 5.1% | ||||||||
1,109,000 | Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer (c) | 6.75% | 10/15/27 | 1,051,625 | ||||
223,000 | AmWINS Group, Inc. (c) | 4.88% | 06/30/29 | 204,789 | ||||
2,793,000 | AssuredPartners, Inc. (c) | 7.00% | 08/15/25 | 2,760,412 | ||||
1,848,000 | HUB International Limited (c) | 7.00% | 05/01/26 | 1,846,398 | ||||
5,863,224 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES (Continued) | ||||||||
Integrated Telecommunication Services – 0.4% | ||||||||
$10,000 | Zayo Group Holdings, Inc. (c) | 4.00% | 03/01/27 | $7,164 | ||||
748,000 | Zayo Group Holdings, Inc. (c) | 6.13% | 03/01/28 | 461,947 | ||||
469,111 | ||||||||
Managed Health Care – 0.1% | ||||||||
139,000 | MPH Acquisition Holdings, LLC (c) | 5.75% | 11/01/28 | 106,148 | ||||
Metal, Glass & Plastic Containers – 1.3% | ||||||||
1,500,000 | Berry Global, Inc. (c) | 5.50% | 04/15/28 | 1,482,681 | ||||
Movies & Entertainment – 0.0% | ||||||||
43,000 | Live Nation Entertainment, Inc. (c) | 6.50% | 05/15/27 | 43,266 | ||||
Paper & Plastic Packaging Products & Materials – 1.0% | ||||||||
1,086,000 | Graham Packaging Co., Inc. (c) | 7.13% | 08/15/28 | 952,053 | ||||
282,000 | Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer, LLC (c) | 4.00% | 10/15/27 | 254,235 | ||||
1,206,288 | ||||||||
Pharmaceuticals – 0.4% | ||||||||
500,000 | IQVIA, Inc. (c) | 5.00% | 10/15/26 | 486,004 | ||||
Restaurants – 0.9% | ||||||||
977,000 | IRB Holding Corp. (c) | 7.00% | 06/15/25 | 982,764 | ||||
Specialized Finance – 0.1% | ||||||||
118,000 | Radiate HoldCo, LLC/Radiate Finance, Inc. (c) | 4.50% | 09/15/26 | 96,024 | ||||
Systems Software – 3.4% | ||||||||
258,000 | Boxer Parent Co., Inc. (c) | 9.13% | 03/01/26 | 259,154 | ||||
250,000 | Oracle Corp. | 6.15% | 11/09/29 | 262,289 | ||||
3,536,000 | SS&C Technologies, Inc. (c) | 5.50% | 09/30/27 | 3,419,279 | ||||
3,940,722 | ||||||||
Trading Companies & Distributors – 1.3% | ||||||||
1,500,000 | United Rentals North America, Inc. (c) | 6.00% | 12/15/29 | 1,499,742 | ||||
Total Corporate Bonds and Notes | 34,982,910 | |||||||
(Cost $38,599,062) | ||||||||
FOREIGN CORPORATE BONDS AND NOTES – 2.3% | ||||||||
Application Software – 0.8% | ||||||||
1,019,000 | Open Text Corp. (c) | 3.88% | 02/15/28 | 907,401 | ||||
Automotive Parts & Equipment – 0.5% | ||||||||
610,000 | Clarios Global L.P./Clarios US Finance Co. (c) | 8.50% | 05/15/27 | 618,761 | ||||
Building Products – 0.0% | ||||||||
28,000 | Cemex S.A.B. de C.V. (c) | 5.45% | 11/19/29 | 27,189 | ||||
Data Processing & Outsourced Services – 0.4% | ||||||||
485,000 | Paysafe Finance PLC/Paysafe Holdings US Corp. (c) | 4.00% | 06/15/29 | 395,201 | ||||
Environmental & Facilities Services – 0.2% | ||||||||
72,000 | GFL Environmental, Inc. (c) | 3.75% | 08/01/25 | 68,891 | ||||
114,000 | GFL Environmental, Inc. (c) | 4.00% | 08/01/28 | 102,144 | ||||
171,035 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
FOREIGN CORPORATE BONDS AND NOTES (Continued) | ||||||||
Security & Alarm Services – 0.4% | ||||||||
$500,000 | Garda World Security Corp. (c) | 7.75% | 02/15/28 | $497,863 | ||||
Total Foreign Corporate Bonds and Notes | 2,617,450 | |||||||
(Cost $2,656,865) |
Shares | Description | Value | ||
COMMON STOCKS – 0.0% | ||||
Pharmaceuticals – 0.0% | ||||
26,696 | Akorn, Inc. (d) (e) (f) (g) | 18,020 | ||
(Cost $306,038) | ||||
RIGHTS – 0.0% | ||||
Life Sciences Tools & Services – 0.0% | ||||
1 | New Millennium Holdco, Inc., Corporate Claim Trust, no expiration date (f) (g) (h) (i) | 0 | ||
1 | New Millennium Holdco, Inc., Lender Claim Trust, no expiration date (f) (g) (h) (i) | 0 | ||
Total Rights | 0 | |||
(Cost $0) | ||||
MONEY MARKET FUNDS – 8.5% | ||||
9,768,280 | Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 5.13% (j) | 9,768,280 | ||
(Cost $9,768,280) | ||||
Total Investments – 99.9% | 114,835,744 | |||
(Cost $119,759,721) | ||||
Net Other Assets and Liabilities – 0.1% | 152,924 | |||
Net Assets – 100.0% | $114,988,668 |
(a) | Senior Floating-Rate Loan Interests (“Senior Loans”) in which the Fund invests pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the LIBOR, (ii) the SOFR obtained from the U.S. Department of the Treasury’s Office of Financial Research or another major financial institution, (iii) the prime rate offered by one or more United States banks or (iv) the certificate of deposit rate. Certain Senior Loans are subject to a LIBOR or SOFR floor that establishes a minimum LIBOR or SOFR rate. When a range of rates is disclosed, the Fund holds more than one contract within the same tranche with identical LIBOR or SOFR period, spread and floor, but different LIBOR or SOFR reset dates. |
(b) | Senior Loans generally are subject to mandatory and/or optional prepayment. As a result, the actual remaining maturity of Senior Loans may be substantially less than the stated maturities shown. |
(c) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P. (the “Advisor”). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At July 31, 2023, securities noted as such amounted to $32,439,007 or 28.2% of net assets. |
(d) | This issuer has filed for protection in bankruptcy court. |
(e) | Security received in a transaction exempt from registration under the 1933 Act. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers (see Restricted Securities table). |
(f) | Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by the Advisor. |
(g) | Non-income producing security. |
(h) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Trust’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At July 31, 2023, securities noted as such are valued at $0 or 0.0% of net assets. |
(i) | This security’s value was determined using significant unobservable inputs. |
(j) | Rate shown reflects yield as of July 31, 2023. |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Abbreviations throughout the Portfolio of Investments: | |
CME | Chicago Mercantile Exchange |
CSA | Credit Spread Adjustment |
LIBOR | London Interbank Offered Rate |
SOFR | Secured Overnight Financing Rate |
Valuation Inputs
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly. (Quoted prices for similar investments, valuations based on interest rates and yield curves, or valuations derived from observable market data.) |
• | Level 3 – Level 3 inputs are unobservable inputs that may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
A summary of the inputs used to value the Fund’s investments as of July 31, 2023 is as follows:
Total Value at 7/31/2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Senior Floating-Rate Loan Interests* | $ 67,449,084 | $ — | $ 67,449,084 | $ — |
Corporate Bonds and Notes* | 34,982,910 | — | 34,982,910 | — |
Foreign Corporate Bonds and Notes* | 2,617,450 | — | 2,617,450 | — |
Common Stocks* | 18,020 | — | 18,020 | — |
Rights* | —** | — | — | —** |
Money Market Funds | 9,768,280 | 9,768,280 | — | — |
Total Investments | $ 114,835,744 | $ 9,768,280 | $ 105,067,464 | $—** |
* | See Portfolio of Investments for industry breakout. |
** | Investments are valued at $0. |
Level 3 investments are fair valued by the Advisor’s Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable inputs.
Unfunded Loan Commitments
As of July 31, 2023, the Fund had the following unfunded loan commitments, which are categorized as Level 2 within the fair value hierarchy:
Borrower | Principal Value | Commitment Amount | Value | Unrealized Appreciation (Depreciation) | ||||
athenahealth, Inc. (Minerva Merger Sub, Inc.), Term Loan | $ 214,290 | $ 213,759 | $ 208,506 | $ (5,253) |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
July 31, 2023 (Unaudited)
Restricted Securities
As of July 31, 2023, the Fund held a restricted security as shown in the following table that the Advisor has deemed illiquid.
Security | Acquisition Date | Shares | Current Price | Carrying Cost | Value | % of Net Assets |
Akorn, Inc. | 10/15/20 | 26,696 | $0.68 | $306,038 | $18,020 | 0.02% |