First Trust Senior Floating Rate Income Fund II (the "Fund")
(NYSE: FCT) has increased its regularly scheduled monthly common
share distribution to $0.092 per share from $0.0695 per share. The
distribution will be payable on April 17, 2023, to shareholders of
record as of April 4, 2023. The ex-dividend date is expected to be
April 3, 2023. The monthly distribution information for the Fund
appears below.
First Trust Senior Floating Rate Income
Fund II (FCT):
Distribution per share:
$0.092
Distribution Rate based on the March 17,
2023 NAV of $11.00:
10.04%
Distribution Rate based on the March 17,
2023 closing market price of $9.32:
11.85%
Increase from previous distribution of
$0.0695:
32.37%
This distribution will consist of net investment income earned
by the Fund and return of capital and may also consist of net
short-term realized capital gains. The final determination of the
source and tax status of all 2023 distributions will be made after
the end of 2023 and will be provided on Form 1099-DIV.
The Fund has a practice of seeking to maintain a relatively
stable, attractive monthly distribution which may be changed
periodically. First Trust Advisors L.P. ("FTA") believes the
practice helps maintain the Fund's competitiveness and may benefit
the Fund's market price and premium/discount to the Fund's NAV. The
practice has no impact on the Fund's investment strategy and may
reduce the Fund's NAV.
The Fund is a diversified, closed-end management investment
company. The Fund's primary investment objective is to seek a high
level of current income. As a secondary objective, the Fund
attempts to preserve capital. The Fund pursues these investment
objectives by investing primarily in senior secured floating-rate
corporate loans. Under normal market conditions, the Fund will
invest at least 80% of its Managed Assets in lower grade debt
instruments.
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. 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 $196 billion as of
February 28, 2023 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.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the Fund are identified below, which
includes the risk that you could lose some or all of your
investment in the Fund. The principal risks of investing in the
Fund are spelled out in the Fund's annual shareholder reports. The
order of the below risk factors does not indicate the significance
of any particular risk factor. The Fund also files reports, proxy
statements and other information that is available for
review.
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. There can be no assurance that the Fund's investment
objectives will be achieved. The Fund may not be appropriate for
all investors.
Securities held by a fund, as well as shares of a fund itself,
are subject to market fluctuations caused by factors such as
general economic conditions, political events, regulatory or market
developments, changes in interest rates and perceived trends in
securities prices. Shares of a fund could decline in value or
underperform other investments as a result of the risk of loss
associated with these market fluctuations. In addition, local,
regional or global events such as war, acts of terrorism, spread of
infectious diseases or other public health issues, recessions, or
other events could have a significant negative impact on a fund and
its investments. Such events may affect certain geographic regions,
countries, sectors and industries more significantly than others.
In February 2022, Russia invaded Ukraine which has caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, and the United States. The
hostilities and sanctions resulting from those hostilities could
have a significant impact on certain fund investments as well as
fund performance. The COVID-19 global pandemic and the ensuing
policies enacted by governments and central banks have caused and
may continue to cause significant volatility and uncertainty in
global financial markets. While the U.S. has resumed "reasonably"
normal business activity, many countries continue to impose
lockdown measures. Additionally, there is no guarantee that
vaccines will be effective against emerging variants of the
disease.
The Fund will typically invest in senior loans rated below
investment grade, which are commonly referred to as "junk" or
"high-yield" securities and considered speculative because of the
credit risk of their issuers. Such issuers are more likely than
investment grade issuers to default on their payments of interest
and principal owed to the Fund, and such defaults could reduce the
Fund's NAV and income distributions. An economic downturn would
generally lead to a higher non-payment rate, and a senior loan may
lose significant market value before a default occurs. Moreover,
any specific collateral used to secure a senior loan may decline in
value or become illiquid, which would adversely affect the senior
loan's value.
The senior loan market has seen an increase in loans with weaker
lender protections which may impact recovery values and/or trading
levels in the future. The absence of financial maintenance
covenants in a loan agreement generally means that the lender may
not be able to declare a default if financial performance
deteriorates. This may hinder the Fund's ability to reprice credit
risk associated with a particular borrower and reduce the Fund's
ability to restructure a problematic loan and mitigate potential
loss. As a result, the Fund's exposure to losses on investments in
senior loans may be increased, especially during a downturn in the
credit cycle or changes in market or economic conditions.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. The United
Kingdom's Financial Conduct Authority, which regulates LIBOR has
ceased making LIBOR available as a reference rate over a phase-out
period that began December 31, 2021. There is no assurance that any
alternative reference rate, including the Secured Overnight
Financing Rate ("SOFR") will be similar to or produce the same
value or economic equivalence as LIBOR or that instruments using an
alternative rate will have the same volume or liquidity. The
unavailability or replacement of LIBOR may affect the value,
liquidity or return on certain fund investments and may result in
costs incurred in connection with closing out positions and
entering into new trades. Any potential effects of the transition
away from LIBOR on the fund or on certain instruments in which the
fund invests can be difficult to ascertain, and they may vary
depending on a variety of factors, and they could result in losses
to the fund.
A second lien loan may have a claim on the same collateral pool
as the first lien or it may be secured by a separate set of assets.
Second lien loans are typically secured by a second priority
security interest or lien on specified collateral securing the
Borrower's obligation under the interest. Because second lien loans
are second to first lien loans, they present a greater degree of
investment risk. Specifically, these loans are subject to the
additional risk that the cash flow of the Borrower and property
securing the loan may be insufficient to meet scheduled payments
after giving effect to those loans with a higher priority. In
addition, loans that have a lower than first lien priority on
collateral of the Borrower generally have greater price volatility
than those loans with a higher priority and may be less liquid.
In the event a borrower fails to pay scheduled interest or
principal payments on a senior loan held by the Fund, the Fund will
experience a reduction in its income and a decline in the value of
the senior loan, which will likely reduce dividends and lead to a
decline in the net asset value of the Fund's common shares. If the
Fund acquires a senior loan from another lender, for example, by
acquiring a participation, the Fund may also be subject to credit
risks with respect to that lender. Although senior loans may be
secured by specific collateral, the value of the collateral may not
equal the Fund's investment when the senior loan is acquired or may
decline below the principal amount of the senior loan subsequent to
the Fund's investment. Also, to the extent that collateral consists
of stock of the borrower or its subsidiaries or affiliates, the
Fund bears the risk that the stock may decline in value, be
relatively illiquid, and/or may lose all or substantially all of
its value, causing the senior loan to be under collateralized.
Therefore, the liquidation of the collateral underlying a senior
loan may not satisfy the issuer's obligation to the Fund in the
event of non-payment of scheduled interest or principal, and the
collateral may not be readily liquidated.
Distressed securities frequently do not produce income while
they are outstanding. The Fund may be required to incur certain
extraordinary expenses in order to protect and recover its
investment. The Fund also will be subject to significant
uncertainty as to when and in what manner and for what value the
obligations evidenced by the distressed securities will eventually
be satisfied.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The Fund's portfolio is also subject to credit risk, interest
rate risk, liquidity risk, prepayment risk and reinvestment risk.
Interest rate risk is the risk that fixed-income securities will
decline in value because of changes in market interest rates.
Credit risk is the risk that an issuer of a security will be unable
or unwilling to make dividend, interest and/or principal payments
when due and that the value of a security may decline as a result.
Credit risk may be heightened for the Fund because it invests in
below investment grade securities. Liquidity risk is the risk that
the fund may have difficulty disposing of senior loans if it seeks
to repay debt, pay dividends or expenses, or take advantage of a
new investment opportunity. Prepayment risk is the risk that, upon
a prepayment, the actual outstanding debt on which the Fund derives
interest income will be reduced. The Fund may not be able to
reinvest the proceeds received on terms as favorable as the prepaid
loan. Reinvestment risk is the risk that income from the Fund's
portfolio will decline if the Fund invests the proceeds from
matured, traded or called instruments at market interest rates that
are below the Fund's portfolio's current earnings rate.
The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
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
https://www.ftportfolios.com or by calling 1-800-988-5891.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230320005645/en/
Press Inquiries, Ryan Issakainen, 630-765-8689 Analyst
Inquiries, Jeff Margolin, 630-915-6784 Broker Inquiries, Sales
Team, 866-848-9727
First Trust Senior Float... (NYSE:FCT)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
First Trust Senior Float... (NYSE:FCT)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
