First Trust Strategic High Income Fund II Decreases Its Monthly Common Share Distribution to $0.12 Per Share for December
by Business Wire
First Trust Strategic High Income Fund II (the "Fund") (NYSE: FHY) has decreased the Fund’s regularly scheduled monthly common share distribution to $0.12 per share from $0.1325 per share. The distribution will be payable on December 10, 2012 to shareholders of record as of December 5, 2012. The ex-dividend date is expected to be December 3, 2012. The monthly distribution information for the Fund appears below.
First Trust Strategic High Income Fund II (FHY):
|Distribution per share:||$0.12|
|Distribution Rate based on the November 19, 2012 NAV of $16.86:||8.54%|
|Distribution Rate based on the November 19, 2012 closing market price of $16.84:||8.55%|
|Decrease from previous distribution of $0.1325:|
High yield bonds have seen their yields decline as investors have moved $14.7b into high yield mutual funds so far in 2012. Given the market’s demand for yield, issuers have been able to refinance debt, call away higher yielding issues, and replace them with lower yielding paper. This trend has resulted in a marginal reduction in the portfolio’s ability to generate income.
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 of tax status of all 2012 distributions will be made after the end of 2012.
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 growth. The Fund pursues these investment objectives by investing up to 100% of its managed assets in a diversified portfolio of below-investment grade and investment grade debt securities and equity securities that the investment sub-advisor believes offer attractive yield and/or capital appreciation potential.
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 and financial advisory services, with collective assets under management or supervision of approximately $61 billion as of October 31, 2012 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.
Brookfield Investment Management Inc. (“Brookfield”) serves as the Fund’s Sub-Advisor. Brookfield is a wholly-owned subsidiary of Brookfield Asset Management, a global alternative asset manager with over $150 billion in assets under management as of September 30, 2012. Brookfield Asset Management has over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity and also offers a range of public and private investment products and services. On behalf of its clients, Brookfield Asset Management is also an active investor in the public securities markets. The public market activities of Brookfield, an SEC-registered investment advisor, complement the firm’s core competencies as a direct investor. These activities encompass global listed real estate and infrastructure equities, corporate high-yield investments, opportunistic credit strategies and a dedicated insurance asset management division. Headquartered in New York, NY, Brookfield maintains offices and investment teams in Toronto, Chicago, Boston and London.
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, value investing risk, below-investment grade securities risk, fixed-income securities risk, mortgage-backed securities risk, asset-backed securities risk, convertible securities risk, municipal securities risk, non-U.S. securities risk, non-U.S. government securities risk, equity securities risk, currency risk, distressed securities risk, preferred stock risk, inflation/deflation risk, market discount risk, leverage risk, derivatives risk, market disruption risk, portfolio turnover risk, and illiquid/restricted securities risk. The risks of investing in the Fund are spelled out in the prospectus, shareholder reports 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.