FAV First Trust Dividend And Income Fund of Beneficial Interest

First Trust Dividend and Income Fund (NYSE: FAV) (the “Fund”), which until July 1, 2013 was known as First Trust Active Dividend Income Fund, announced today that shareholders of the Fund have voted to approve a new investment sub-advisory agreement (“New Agreement”) with Chartwell Investment Partners, L.P. (“Chartwell”). On June 10, 2013, the Fund’s Board of Trustees (“Board”) approved an interim investment sub-advisory agreement with Chartwell, which the Fund entered into effective July 1, 2013. The interim investment sub-advisory agreement provided that Chartwell would serve as the Fund’s sub-advisor for a maximum period of 150 days or until shareholders approved the New Agreement, whichever occurred first. The New Agreement with Chartwell was submitted to shareholders of the Fund and took effect upon shareholder approval today.

On June 10, 2013, the Board also approved a repositioning of the Fund that contemplated certain changes to the Fund’s investment strategies as described briefly below. Such changes were not subject to shareholder approval. The Fund’s primary investment objective, which is to seek a high level of current income, and secondary investment objective, which is capital appreciation, are not changing.

First Trust Advisors L.P. (“FTA”) has served as the Fund’s investment advisor since the Fund’s inception. FTA along with its affiliate, First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $72 billion as of August 31, 2013, through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separately managed accounts.

Chartwell has served as the Fund’s investment sub-advisor since July 1, 2013, and is an employee-owned investment firm focusing on institutional, sub-advisory, and private client relationships. The firm is a research-based equity and fixed-income manager with a disciplined, team-oriented investment process. At August 31, 2013, Chartwell had approximately $6.6 billion in assets under management.

Pre-Repositioned Fund

  Repositioned Fund Under normal market conditions, the Fund invests at least 80% of its managed assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers that the Fund’s sub-advisor believes offer the potential for attractive income and/or capital appreciation. Equity securities in which the Fund may invest include common stocks, preferred stocks, convertible securities, American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and warrants, all of which generally trade on a U.S. national securities exchange. The Fund may, from time to time, also invest a portion of its managed assets in real estate investment trusts (“REITs”), master limited partnerships (“MLPs”), exchange-traded funds (“ETFs”) and U.S. government securities. The Fund will seek to achieve its investment objectives by investing at least 80% of its managed assets in a diversified portfolio of dividend-paying multi-cap equity securities, debt securities and senior, secured floating rate loans (“Senior Loans”) that offer the potential for attractive income and/or capital appreciation.   The Fund’s portfolio will consist of two components: (1) the “Equity Component,” which will consist primarily of equity securities of both U.S. and non-U.S. issuers of any market capitalization that are readily traded on a registered U.S. national securities exchange (“Equity Securities”); and (2) the “Senior Loan/High Yield Debt Component.” The Equity Securities in which the Fund may invest will include common stocks, preferred securities, convertible securities, ADRs, including American Depositary Shares, EDRs, GDRs and warrants, all of which will generally trade on a registered U.S. national securities exchange. In addition, Equity Securities will also include (including for purposes of the 80% test set forth above) investments in REITs, MLPs and investment companies, including ETFs and business development companies. The Senior Loan/High Yield Debt Component will primarily consist of (i) Senior Loans and (ii) debt securities that are rated below investment grade (i.e., “junk bonds”) or unrated at the time of purchase and deemed to be of comparable credit quality (“High Yield Debt Securities”).   The Fund may invest up to 25% of its managed assets in U.S. dollar-denominated Equity Securities of non-U.S. issuers.   The Fund may write call options on stock indices and single stocks on up to 50% of the Fund’s portfolio value. On an ongoing and consistent basis, the Fund expects to write (sell) covered call options on equity indices and/or Equity Securities within the Equity Component. The Fund will normally write (sell) covered call options against equity indices and/or Equity Securities with strike prices and expiration dates that are collectively intended to provide risk/reward characteristics that are consistent with the Fund’s investment objectives.   The Fund is authorized to utilize leverage through the issuance of preferred shares and/or through the issuance of commercial paper or notes and/or other borrowings, but currently has no outstanding leverage. The Fund initially intends to utilize leverage through borrowings in an amount up to 25% of the Fund’s managed assets to seek to enhance its potential for current income. To the extent leverage is used, the Fund currently intends to invest the funds raised through leverage in Senior Loans and High Yield Debt Securities.  

The Fund’s daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at www.ftportfolios.com or by calling 1-800-988-5891.

First Trust Advisors L.P.Press Inquiries: Jane Doyle, 630-765-8775Analyst Inquiries: Jeff Margolin, 630-915-6784Broker Inquiries: Jeff Margolin, 630-915-6784