FT High Yield Opportunities 2027 Term Fund (FTHY) is a closed-end management investment company that aims to provide high current income. The fund invests primarily in a diversified portfolio of high yield fixed-income securities, such as corporate bonds and other debt instruments, with an emphasis on below investment grade debt securities, also known as junk bonds.
FTHY's portfolio is managed by First Trust Advisors L.P, a subsidiary of First Trust Portfolios L.P, and is benchmarked against the Bloomberg Barclays U.S. High Yield Very Liquid Index. The fund's shares trade on the New York Stock Exchange (NYSE).
As of the end of December 2021, FTHY had total net assets of approximately $157 million and a distribution yield of 6.64%. The fund's annual expense ratio is 2.24%. FTHY is managed by a team of experienced portfolio managers and analysts who have significant expertise in the high yield debt market.
Like other closed-end funds, FTHY may trade at a premium or discount to its net asset value (NAV) due to supply and demand factors in the market. Investors should be aware of these potential fluctuations in the share price and the possibility of the fund's investments losing value, especially during periods of market volatility.
Overall, FTHY may be suitable for investors seeking higher levels of current income and who are willing to accept the risks associated with investing in high yield fixed-income securities. However, it may not be appropriate for investors with a low risk tolerance or those seeking capital appreciation. Investors should carefully consider their investment objectives, risk tolerance, and financial situation before investing in FTHY or any other investment product.
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