First Trust Active Dividend Income Fund (the "Fund") (NYSE: FAV) today decreased its regularly scheduled quarterly distribution to $0.28 per share from $0.32 per share. The distribution will be payable on January 31, 2011 to shareholders of record as of January 25, 2011. The ex-dividend date is expected to be January 21, 2011. The quarterly distribution information for the Fund appears below.

 

First Trust Active Dividend Income Fund (FAV):

Distribution per share: $0.28
Distribution Rate based on the January 11, 2011 NAV of $10.66: 10.51%
Distribution Rate based on the January 11, 2011 closing market price of $11.48: 9.76%
Decrease from previous distribution of $0.32: -12.50%
 

While the Fund generates income from its dividend capture and rotation strategy, a reduction in the dividend is prudent at this time. The revised dividend level reflects a balance between high current income and NAV growth potential as market conditions allow.

The change in the dividend also provides additional flexibility for the Fund to take advantage of the tax efficiency offered by its current capital loss carry-forward amount, in that realized gains, up to the capital loss carry-forward amount, can be reinvested by the Fund instead of being distributed.

The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital. The final determination of the source and tax status of all 2011 distributions will be made after the end of 2011.

The Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to provide capital appreciation. The Fund pursues these investment objectives by investing 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 investment sub-advisor believes offer the potential for attractive income and/or capital appreciation.

First Trust Advisors L.P., the Fund's investment advisor, along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of approximately $42 billion as of December 31, 2010 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.

Aviance Capital Management, LLC, (?Aviance?), the Fund's investment sub-advisor, focuses on managing multi-cap value and growth portfolios.

Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Principal Risk Factors: Investment in this Fund involves investment and market risk; management risk; sub-advisor risk; value investing risk; dividend strategy risk; qualified dividend tax risk; equity securities risk; small and medium cap company risk; non-U.S. securities risk; and emerging markets risk. The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.

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 Active Dividend Income Fund
Press Inquiries:
Jane Doyle, 630-765-8775
or
Analyst Inquiries:
Jeff Margolin, 630-915-6784
or
Broker Inquiries:
Jeff Margolin, 630-915-6784