First Trust Short Duration High Income Fund
Portfolio of Investments
January 31, 2024 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value |
SENIOR FLOATING-RATE LOAN INTERESTS – 49.5% | ||||
Application Software – 11.6% | ||||
$151,315 | ConnectWise, LLC, Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.96 % | 09/30/28 | $151,371 |
837,123 | Epicor Software Corp., First Lien Term Loan C, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.70 % | 07/30/27 | 838,651 |
1,611,521 | Gainwell Acquisition Corp. (fka Milano), Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.00%, 0.75% Floor | 9.45 % | 10/01/27 | 1,570,427 |
756,331 | 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 | 9.45 % | 12/01/27 | 757,987 |
118,348 | Informatica Corp., Initial Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.20 % | 10/29/28 | 118,363 |
1,035,284 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), 2nd Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 6.25%, 0.00% Floor | 11.58 % | 02/23/29 | 996,243 |
455,678 | Internet Brands, Inc. (Web MD/MH Sub I. LLC), 2023 New Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.58 % | 04/20/28 | 447,027 |
23,244 | ION Trading Technologies Limited, Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.75%, 0.00% Floor | 10.20 % | 04/01/28 | 22,922 |
1,395,283 | LogMeIn, Inc. (GoTo Group, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.75%, 0.00% Floor | 10.18 % | 08/31/27 | 637,177 |
692,481 | McAfee Corp. (Condor Merger Sub, Inc.), Tranche B-1 Term Loan, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.50% Floor | 9.20 % | 02/28/29 | 687,633 |
132,106 | N-Able, Inc., Term Loan B, 3 Mo. CME Term SOFR + CSA + 2.75%, 0.50% Floor | 8.40 % | 07/19/28 | 132,271 |
739,370 | Open Text Corp. (GXS), 2023 Replacement Term Loan, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.50% Floor | 8.18 % | 01/31/30 | 740,483 |
102,593 | Qlik Technologies (Project Alpha Intermediate Holding, Inc.), Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.75%, 0.50% Floor | 10.06 % | 10/31/30 | 102,935 |
353,983 | RealPage, Inc., Second Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 6.50%, 0.75% Floor | 11.95 % | 04/22/29 | 354,559 |
696,549 | RealPage, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.45 % | 04/24/28 | 682,817 |
1,165,811 | SolarWinds Holdings, Inc., 2024 Refi Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.00% Floor | 8.59 % | 02/05/27 | 1,168,487 |
551,117 | Ultimate Kronos Group (UKG, Inc.), 2024 Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.50%, 0.00% Floor | 8.81 % | 02/15/31 | 552,495 |
9,961,848 | ||||
Asset Management & Custody Banks – 1.5% | ||||
767,146 | Edelman Financial Engines Center, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.75% Floor | 8.95 % | 04/07/28 | 763,257 |
494,486 | Edelman Financial Engines Center, LLC, Term Loan Second Lien, 1 Mo. CME Term SOFR + CSA + 6.75%, 0.00% Floor | 12.20 % | 07/20/26 | 496,093 |
1,259,350 | ||||
Automotive Retail – 0.5% | ||||
428,005 | Mavis Tire Express Services Topco Corp., 2024 Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.75% Floor | 9.08 % | 05/04/28 | 428,687 |
Broadcasting – 0.9% | ||||
746,921 | Sinclair Television Group, Inc., Term Loan B-2, 1 Mo. CME Term SOFR + CSA + 2.50%, 0.00% Floor | 7.95 % | 09/30/26 | 730,769 |
Building Products – 0.1% | ||||
100,219 | Hunter Douglas, Inc. (Solis), Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.88 % | 02/25/29 | 98,769 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value |
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||
Casinos & Gaming – 0.6% | ||||
$466,582 | Golden Nugget, Inc. (Fertitta Entertainment, LLC), Initial Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.50% Floor | 9.33 % | 01/27/29 | $465,863 |
81,875 | Scientific Games Holdings L.P. (Scientific Games Lottery), Initial Dollar Term Loan, 3 Mo. CME Term SOFR + 3.25%, 0.50% Floor | 8.58 % | 04/04/29 | 81,330 |
547,193 | ||||
Commercial Printing – 0.7% | ||||
664,162 | Multi-Color Corp. (LABL, Inc.), Initial Dollar Term Loan, 1 Mo. CME Term SOFR + CSA + 5.00%, 0.50% Floor | 10.43 % | 10/29/28 | 632,236 |
Education Services – 0.2% | ||||
159,195 | Ascensus Holdings, Inc. (Mercury), First Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 08/02/28 | 158,847 |
Electronic Equipment & Instruments – 0.9% | ||||
274,371 | Chamberlain Group, Inc. (Chariot), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.68 % | 11/03/28 | 271,724 |
491,001 | Verifone Systems, Inc., Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.64 % | 08/20/25 | 471,854 |
743,578 | ||||
Health Care Facilities – 0.2% | ||||
186,936 | Ardent Health Services, Inc. (AHP Health Partners, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 08/24/28 | 187,380 |
Health Care Services – 1.0% | ||||
616,437 | CHG Healthcare Services, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.70 % | 09/30/28 | 615,238 |
217,146 | ExamWorks Group, Inc. (Electron Bidco), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.45 % | 11/01/28 | 217,175 |
832,413 | ||||
Health Care Supplies – 1.1% | ||||
982,500 | Medline Borrower, L.P. (Mozart), Initial Dollar Term Loan, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.45 % | 10/21/28 | 981,935 |
Health Care Technology – 8.6% | ||||
981,177 | athenahealth, Inc. (Minerva Merger Sub, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.58 % | 02/15/29 | 969,525 |
330,301 | Ciox Health (Healthport/CT Technologies Intermediate Holdings, Inc.), New Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.75% Floor | 9.70 % | 12/16/25 | 325,021 |
307,904 | Ensemble RCM, LLC (Ensemble Health), 2024 Refi Loan, 3 Mo. CME Term SOFR + 3.00%, 0.00% Floor | 8.32 % | 08/20/29 | 307,952 |
98,830 | Mediware (Wellsky/Project Ruby Ultimate Parent Corp.), 2024 Incremental Term Loan, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.00% Floor | 8.95 % | 03/10/28 | 98,583 |
1,087,242 | Mediware (Wellsky/Project Ruby Ultimate Parent Corp.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.70 % | 03/10/28 | 1,082,893 |
980,098 | Navicure, Inc. (Waystar Technologies, Inc.), Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.45 % | 10/23/26 | 981,941 |
2,864,114 | Verscend Technologies, Inc. (Cotiviti), New Term Loan B-1, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.45 % | 08/27/25 | 2,870,759 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value |
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||
Health Care Technology (Continued) | ||||
$788,219 | Zelis Payments Buyer, Inc., Term Loan B-2, 3 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.07 % | 09/28/29 | $788,384 |
7,425,058 | ||||
Industrial Machinery & Supplies & Components – 1.3% | ||||
307,482 | Copeland (Emerald Debt Merger Sub, LLC/EMRLD), Initial Term Loan, 3 Mo. CME Term SOFR + CSA + 3.00%, 0.00% Floor | 8.31 % | 05/31/30 | 307,925 |
97,614 | Filtration Group Corp., 2021 Incremental Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 10/21/28 | 97,718 |
309,549 | Filtration Group Corp., 2023 Extended Term Loan, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.70 % | 10/21/28 | 310,343 |
432,637 | TK Elevator Newco GMBH (Vertical U.S. Newco, Inc.), New Term Loan B1, 3 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 9.08 % | 07/31/27 | 433,245 |
1,149,231 | ||||
Insurance Brokers – 9.1% | ||||
840,735 | Alliant Holdings I, LLC, Term Loan B-6, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.83 % | 11/06/30 | 843,442 |
244,882 | AmWINS Group, Inc., Feb. 2023 Incremental Term Loan, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.75% Floor | 8.20 % | 02/19/28 | 244,510 |
329,019 | AssuredPartners, Inc., 2021 Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 02/12/27 | 328,320 |
343,835 | AssuredPartners, Inc., Incremental Term Loan 2022, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.83 % | 02/12/27 | 343,118 |
489,796 | AssuredPartners, Inc., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.00% Floor | 8.95 % | 02/12/27 | 489,000 |
81,663 | BroadStreet Partners, Inc., 2023 Term B Loan, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.00% Floor | 9.08 % | 01/26/29 | 81,714 |
1,345,481 | BroadStreet Partners, Inc., Initial Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.00% Floor | 8.45 % | 01/27/27 | 1,343,543 |
1,516,135 | HUB International Limited, 2024 Refi Term Loan B, 3 Mo. CME Term SOFR + 3.25%, 0.75% Floor | 8.57 % | 06/20/30 | 1,518,743 |
33,423 | Hyperion Insurance Group LTD (aka - Howden Group), 2023 Term Loan, 1 Mo. CME Term SOFR + CSA + 4.00%, 0.50% Floor | 9.33 % | 04/18/30 | 33,447 |
398,982 | IMA Financial Group, Inc., Term Loan B-1, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.50% Floor | 9.20 % | 11/01/28 | 399,231 |
247,720 | National Financial Partners Corp. (NFP), Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.00% Floor | 8.70 % | 02/13/27 | 248,424 |
1,146,944 | OneDigital Borrower, LLC, Term Loan B, 1 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.68 % | 11/16/27 | 1,147,667 |
129,488 | Ryan Specialty Group, LLC, 2024 Term Loan, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.75% Floor | 8.08 % | 09/01/27 | 129,698 |
655,727 | USI, Inc., 2023-B New Term Loan, 3 Mo. CME Term SOFR + CSA + 3.00%, 0.00% Floor | 8.35 % | 11/22/29 | 655,901 |
7,806,758 | ||||
Integrated Telecommunication Services – 1.9% | ||||
1,080,899 | Numericable (Altice France S.A. or SFR), Term Loan B-12, 3 Mo. LIBOR + 3.69%, 0.00% Floor | 9.26 % | 01/31/26 | 1,061,308 |
260,925 | Numericable (Altice France S.A. or SFR), Term Loan B-13, 3 Mo. LIBOR + 4.00%, 0.00% Floor | 9.64 % | 08/14/26 | 254,630 |
346,663 | Zayo Group Holdings, Inc., Incremental Term Loan B-2, 1 Mo. CME Term SOFR + CSA + 4.33%, 0.50% Floor | 9.66 % | 03/09/27 | 295,168 |
1,611,106 | ||||
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value |
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||
IT Consulting & Other Services – 0.3% | ||||
$248,744 | CDK Global, Inc. (Central Parent, Inc.), Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.00%, 0.00% Floor | 9.35 % | 07/06/29 | $249,521 |
Managed Health Care – 0.3% | ||||
263,941 | Multiplan, Inc. (MPH), Term Loan B, 3 Mo. CME Term SOFR + CSA + 4.25%, 0.50% Floor | 9.90 % | 08/31/28 | 253,053 |
Metal, Glass & Plastic Containers – 0.1% | ||||
101,743 | ProAmpac PG Borrower LLC, First Lien Term Loan, 3 Mo. CME Term SOFR + CSA + 4.50%, 0.75% Floor | 9.80%-9.87% | 09/15/28 | 102,093 |
Other Diversified Financial Services – 0.2% | ||||
157,000 | Worldpay (GTCR W Merger Sub LLC/Boost Newco LLC), Initial Term Loan, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.50% Floor | 8.33 % | 12/31/30 | 157,213 |
Other Specialty Retail – 0.5% | ||||
491,817 | Petco Health and Wellness Company, Inc., Initial Term Loan B, 3 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.86 % | 03/04/28 | 462,979 |
Paper & Plastic Packaging Products & Materials – 0.8% | ||||
71,389 | Graham Packaging Company, L.P., Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.00%, 0.75% Floor | 8.45 % | 08/04/27 | 71,372 |
266,185 | Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings), Term Loan B-2, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.00% Floor | 8.70 % | 02/05/26 | 266,684 |
312,725 | Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings), Tranche B-3 U.S. Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.70 % | 09/24/28 | 313,255 |
651,311 | ||||
Pharmaceuticals – 0.6% | ||||
471,693 | Parexel International Corp. (Phoenix Newco), First Lien Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.70 % | 11/15/28 | 471,004 |
Property & Casualty Insurance – 0.9% | ||||
778,488 | Sedgewick Claims Management Services, Inc., 2023 Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.75%, 0.00% Floor | 9.08 % | 02/24/28 | 779,660 |
Research & Consulting Services – 2.6% | ||||
852,754 | Clarivate Analytics PLC (Camelot), 2024 Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.08 % | 01/31/31 | 852,754 |
1,242,699 | Dun & Bradstreet Corp., 2024 Refi Term Loan, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.00% Floor | 8.09 % | 01/18/29 | 1,243,786 |
144,150 | J.D. Power (Project Boost Purchaser, LLC), 2021 Incremental Term Loan B, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 05/30/26 | 144,376 |
2,240,916 | ||||
Restaurants – 1.2% | ||||
1,019,460 | IRB Holding Corp. (Arby’s/Inspire Brands), 2024 Replacement Term Loan B, 1 Mo. CME Term SOFR + CSA + 2.75%, 0.75% Floor | 8.21 % | 12/15/27 | 1,018,538 |
Security & Alarm Services – 0.6% | ||||
500,000 | Garda World Security Corp., 2024 Refi Term Loan, 1 Mo. CME Term SOFR + 4.25%, 0.00% Floor | 9.62 % | 02/01/29 | 501,015 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value |
SENIOR FLOATING-RATE LOAN INTERESTS (Continued) | ||||
Specialized Finance – 0.2% | ||||
$260,648 | Radiate Holdco, LLC (Astound), Amendment No. 6 Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor | 8.70 % | 09/25/26 | $212,080 |
Systems Software – 0.1% | ||||
102,870 | SUSE (Marcel Bidco LLC), New Term Loan B3, Daily CME Term SOFR + CSA + 4.50%, 0.50% Floor | 9.82%-9.91% | 10/31/30 | 103,405 |
Trading Companies & Distributors – 0.9% | ||||
713,444 | SRS Distribution, Inc., 2021 Refinancing Term Loan, 1 Mo. CME Term SOFR + CSA + 3.50%, 0.50% Floor | 8.95 % | 06/04/28 | 710,619 |
42,517 | SRS Distribution, Inc., 2022 Refinancing Term Loan, 1 Mo. CME Term SOFR + CSA + 3.25%, 0.50% Floor | 8.71 % | 06/04/28 | 42,345 |
752,964 | ||||
Total Senior Floating-Rate Loan Interests | 42,510,910 | |||
(Cost $43,378,703) | ||||
Principal Value | Description | Stated Coupon | Stated Maturity | Value |
CORPORATE BONDS AND NOTES – 33.5% | ||||
Aerospace & Defense – 0.1% | ||||
111,000 | TransDigm, Inc. (c) | 6.75 % | 08/15/28 | 112,955 |
Application Software – 1.1% | ||||
530,000 | Alteryx, Inc. (c) | 8.75 % | 03/15/28 | 568,035 |
456,000 | GoTo Group, Inc. (c) | 5.50 % | 08/31/27 | 188,103 |
219,000 | UKG, Inc. (c) (d) | 6.88 % | 02/01/31 | 221,738 |
977,876 | ||||
Automotive Parts & Equipment – 0.1% | ||||
87,000 | Caliber Collision (Wand Newco 3, Inc.) (c) | 7.63 % | 01/30/32 | 89,908 |
Automotive Retail – 0.3% | ||||
250,000 | Mavis Tire Express Services Topco Corp. (c) | 6.50 % | 05/15/29 | 230,016 |
Broadcasting – 5.6% | ||||
533,000 | Gray Television, Inc. (c) | 7.00 % | 05/15/27 | 521,602 |
785,000 | iHeartCommunications, Inc. | 8.38 % | 05/01/27 | 487,266 |
625,000 | iHeartCommunications, Inc. (c) | 4.75 % | 01/15/28 | 467,706 |
2,258,000 | Nexstar Media, Inc. (c) | 5.63 % | 07/15/27 | 2,200,770 |
57,000 | Sinclair Television Group, Inc. (c) | 5.13 % | 02/15/27 | 53,649 |
1,157,000 | Sirius XM Radio, Inc. (c) | 3.13 % | 09/01/26 | 1,080,864 |
4,811,857 | ||||
Cable & Satellite – 5.1% | ||||
2,212,000 | CCO Holdings, LLC/CCO Holdings Capital Corp. (c) | 5.13 % | 05/01/27 | 2,135,091 |
433,000 | CCO Holdings, LLC/CCO Holdings Capital Corp. (c) | 6.38 % | 09/01/29 | 421,908 |
200,000 | CSC Holdings, LLC (c) | 11.25 % | 05/15/28 | 202,802 |
3,001,000 | CSC Holdings, LLC (c) | 5.75 % | 01/15/30 | 1,591,610 |
4,351,411 | ||||
Casinos & Gaming – 2.1% | ||||
50,000 | Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc. (c) | 4.63 % | 01/15/29 | 45,789 |
860,000 | Fertitta Entertainment, LLC/Fertitta Entertainment Finance Co., Inc. (c) | 6.75 % | 01/15/30 | 774,148 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value |
CORPORATE BONDS AND NOTES (Continued) | ||||
Casinos & Gaming (Continued) | ||||
$1,000,000 | VICI Properties 1, LLC (c) | 5.75 % | 02/01/27 | $998,255 |
1,818,192 | ||||
Commercial Printing – 0.3% | ||||
250,000 | Multi-Color Corp. (LABL, Inc.) (c) | 10.50 % | 07/15/27 | 239,417 |
Environmental & Facilities Services – 0.6% | ||||
500,000 | Waste Pro USA, Inc. (c) | 5.50 % | 02/15/26 | 484,850 |
Health Care Services – 1.2% | ||||
50,000 | DaVita, Inc. (c) | 4.63 % | 06/01/30 | 44,278 |
1,121,000 | Global Medical Response, Inc. (c) | 6.50 % | 10/01/25 | 962,042 |
1,006,320 | ||||
Health Care Supplies – 0.3% | ||||
250,000 | Medline Borrower L.P. (c) | 5.25 % | 10/01/29 | 233,325 |
Health Care Technology – 1.1% | ||||
965,000 | Verscend Escrow Corp. (c) | 9.75 % | 08/15/26 | 969,584 |
Household Products – 0.3% | ||||
250,000 | Energizer Holdings, Inc. (c) | 6.50 % | 12/31/27 | 249,119 |
Industrial Machinery & Supplies & Components – 0.6% | ||||
500,000 | Emerald Debt Merger Sub, LLC (c) | 6.63 % | 12/15/30 | 505,660 |
Insurance Brokers – 2.4% | ||||
1,109,000 | Alliant Holdings Intermediate, LLC/Alliant Holdings Co-Issuer (c) | 6.75 % | 10/15/27 | 1,083,648 |
215,000 | AmWINS Group, Inc. (c) | 4.88 % | 06/30/29 | 200,862 |
125,000 | HUB International Limited (c) | 7.25 % | 06/15/30 | 128,675 |
625,000 | HUB International Limited (c) | 7.38 % | 01/31/32 | 640,451 |
2,053,636 | ||||
Integrated Telecommunication Services – 1.0% | ||||
472,000 | Zayo Group Holdings, Inc. (c) | 4.00 % | 03/01/27 | 359,460 |
748,000 | Zayo Group Holdings, Inc. (c) | 6.13 % | 03/01/28 | 498,688 |
858,148 | ||||
Managed Health Care – 0.1% | ||||
139,000 | MPH Acquisition Holdings, LLC (c) | 5.75 % | 11/01/28 | 110,725 |
Metal, Glass & Plastic Containers – 2.9% | ||||
1,500,000 | Berry Global, Inc. (c) | 5.63 % | 07/15/27 | 1,488,567 |
1,000,000 | Owens-Brockway Glass Container, Inc. (c) | 6.63 % | 05/13/27 | 996,752 |
2,485,319 | ||||
Packaged Foods & Meats – 0.0% | ||||
44,000 | Shearer’s Foods LLC (Fiesta Purchaser, Inc.) | 7.88 % | 03/01/31 | 44,000 |
Paper & Plastic Packaging Products & Materials – 1.4% | ||||
1,086,000 | Graham Packaging Co., Inc. (c) | 7.13 % | 08/15/28 | 970,352 |
282,000 | Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer, LLC (c) | 4.00 % | 10/15/27 | 263,195 |
1,233,547 | ||||
Specialized Finance – 0.1% | ||||
118,000 | Radiate HoldCo, LLC/Radiate Finance, Inc. (c) | 4.50 % | 09/15/26 | 91,364 |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value |
CORPORATE BONDS AND NOTES (Continued) | ||||
Systems Software – 5.0% | ||||
$258,000 | Boxer Parent Co., Inc. (c) | 9.13 % | 03/01/26 | $258,870 |
250,000 | Oracle Corp. | 6.15 % | 11/09/29 | 266,881 |
3,867,000 | SS&C Technologies, Inc. (c) | 5.50 % | 09/30/27 | 3,799,707 |
4,325,458 | ||||
Trading Companies & Distributors – 1.8% | ||||
1,500,000 | United Rentals, Inc. (c) | 6.00 % | 12/15/29 | 1,522,126 |
Total Corporate Bonds and Notes | 28,804,813 | |||
(Cost $31,158,979) | ||||
FOREIGN CORPORATE BONDS AND NOTES – 5.9% | ||||
Application Software – 2.3% | ||||
1,000,000 | Open Text Corp. (c) | 6.90 % | 12/01/27 | 1,038,160 |
1,019,000 | Open Text Corp. (c) | 3.88 % | 02/15/28 | 947,364 |
1,985,524 | ||||
Automotive Parts & Equipment – 1.4% | ||||
1,206,000 | Clarios Global LP (Power Solutions) (c) | 8.50 % | 05/15/27 | 1,204,955 |
Data Processing & Outsourced Services – 0.5% | ||||
459,000 | Paysafe Finance PLC/Paysafe Holdings US Corp. (c) | 4.00 % | 06/15/29 | 409,854 |
Metal, Glass & Plastic Containers – 0.6% | ||||
510,000 | Trivium Packaging Finance B.V. (c) | 5.50 % | 08/15/26 | 498,403 |
Restaurants – 0.5% | ||||
500,000 | 1011778 B.C. Unlimited Liability Company (Restaurant Brands) (aka Burger King/Tim Horton’s) (c) | 4.00 % | 10/15/30 | 447,310 |
Security & Alarm Services – 0.6% | ||||
500,000 | Garda World Security Corp. (c) | 7.75 % | 02/15/28 | 509,219 |
Total Foreign Corporate Bonds and Notes | 5,055,265 | |||
(Cost $4,969,358) | ||||
Shares | Description | Value |
COMMON STOCKS – 0.0% | ||
Pharmaceuticals – 0.0% | ||
26,696 | Akorn, Inc. (e) (f) (g) | 1,468 |
(Cost $306,038) | ||
RIGHTS – 0.0% | ||
Life Sciences Tools & Services – 0.0% | ||
1 | New Millennium Holdco, Inc., Corporate Claim Trust, no expiration date (g) (h) (i) (j) | 0 |
1 | New Millennium Holdco, Inc., Lender Claim Trust, no expiration date (g) (h) (i) (j) | 0 |
Total Rights | 0 | |
(Cost $0) | ||
MONEY MARKET FUNDS – 8.8% | ||
7,533,927 | Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 5.18% (k) | 7,533,927 |
(Cost $7,533,927) | ||
Total Investments – 97.7% | 83,906,383 | |
(Cost $87,347,005) | ||
Net Other Assets and Liabilities – 2.3% | 1,946,955 | |
Net Assets – 100.0% | $85,853,338 | |
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
(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 January 31, 2024, securities noted as such amounted to $33,061,931 or 38.5% of net assets. |
(d) | When-issued security. The interest rate shown reflects the rate in effect at January 31, 2024. Interest will begin accruing on the security’s first settlement date. |
(e) | This issuer has filed for protection in bankruptcy court. |
(f) | 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). |
(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 January 31, 2024, securities noted as such are valued at $0 or 0.0% of net assets. |
(i) | Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by the Advisor. |
(j) | This security’s value was determined using significant unobservable inputs (see Valuation Inputs section). |
(k) | Rate shown reflects yield as of January 31, 2024. |
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.
First Trust Short Duration High Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
A summary of the inputs used to value the Fund’s investments as of January 31, 2024 is as follows:
Total Value at 1/31/2024 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Senior Floating-Rate Loan Interests* | $42,510,910 | $— | $42,510,910 | $— |
Corporate Bonds and Notes* | 28,804,813 | — | 28,804,813 | — |
Foreign Corporate Bonds and Notes* | 5,055,265 | — | 5,055,265 | — |
Common Stocks* | 1,468 | — | 1,468 | — |
Rights* | — ** | — | — | — ** |
Money Market Funds | 7,533,927 | 7,533,927 | — | — |
Total Investments | $83,906,383 | $7,533,927 | $76,372,456 | $— ** |
* | 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.
Restricted Securities
As of January 31, 2024, the Fund held a restricted security as shown in the following table that the Advisor has deemed illiquid pursuant to procedures adopted by the Trust’s Board of Trustees.
Security | Acquisition Date | Principal Value/Shares | Current Price | Carrying Cost | Value | % of Net Assets |
Akorn, Inc. | 10/15/20 | 26,696 | $0.06 | $306,038 | $1,468 | 0.00 %* |
* Amount is less than 0.01%. |