First Trust Announces Timing of Reorganization of First Trust High Income Long/Short Fund with and into abrdn Income Credit Strategies Fund

Rhea-AI Summary

First Trust Advisors L.P. (FTA) has announced that the shareholders of First Trust High Income Long/Short Fund (NYSE: FSD) have approved its reorganization with and into the abrdn Income Credit Strategies Fund (ACP). This closed-end fund merger is expected to close on July 19, 2024, subject to customary conditions. Upon completion, FSD's assets will transfer to ACP, and its liabilities will be assumed by ACP. Shareholders of FSD will receive ACP shares equivalent to their FSD holdings' net asset value. The reorganization is anticipated to be tax-free. FTA manages approximately $226 billion in assets as of May 31, 2024.

Positive

• Shareholders approved the reorganization of FSD with and into ACP.
• FTA manages approximately $226 billion in assets as of May 31, 2024.
• The reorganization is expected to be tax-free.

Negative

• The exact closing date of the reorganization is not assured.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Advisors L.P. (“FTA”) previously announced that shareholders of First Trust High Income Long/Short Fund (NYSE: FSD) (“FSD”), a diversified, closed-end management investment company organized as a Massachusetts business trust, have approved the reorganization of FSD with and into abrdn Income Credit Strategies Fund (“ACP”), a diversified, closed-end management investment company organized as a Delaware statutory trust. Subject to the satisfaction of certain customary closing conditions, the reorganization of FSD into ACP is expected to close at the close of business on July 19, 2024. No assurance can be given as to the exact closing of the transaction. Upon the completion of the reorganization, which is expected to be tax-free, the assets of FSD will be transferred to, and the liabilities of FSD will be assumed by, ACP. The shareholders of FSD will receive shares of ACP with a value equal to the aggregate net asset value of the shares of FSD held by them.

FTA is a federally registered investment advisor and serves as the investment advisor of the Fund. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $226 billion as of May 31, 2024 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, and abrdn ETFs Advisors LLC.

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Jeff Margolin – (630) 517-7643

Daniel Lindquist – (630) 765-8692

Chris Fallow – (630) 517-7628

Source: First Trust Advisors L.P.

FAQ

What is the reorganization date for FSD with and into ACP?

The reorganization of First Trust High Income Long/Short Fund (FSD) with and into abrdn Income Credit Strategies Fund (ACP) is expected to close on July 19, 2024.

What will FSD shareholders receive after the reorganization?

FSD shareholders will receive shares of ACP with a value equal to the net asset value of their FSD shares.

Is the reorganization between FSD and ACP tax-free?

Yes, the reorganization is expected to be tax-free.

How much in assets does First Trust Advisors manage?

First Trust Advisors manages approximately $226 billion in assets as of May 31, 2024.

What happens to FSD's assets and liabilities during the reorganization?

Upon completion of the reorganization, FSD's assets will be transferred to ACP, and ACP will assume FSD's liabilities.