First Trust Senior Floating Rate Income Fund II Monthly Update

Monthly Distribution Announcement by First Trust Senior Floating Rate Income Fund II

First Trust Senior Floating Rate Income Fund II (NYSE: FCT) has recently announced its monthly common share distribution, set at $0.097 per share. This payment aims to reward shareholders for their continued investment in the fund.

Details of the Upcoming Distribution

The distribution, scheduled to be paid shortly, reflects the ongoing commitment of the fund to its investors. The shares will be available for distribution on the 18th of the month, following a record date where shareholders are officially counted. This approach ensures that all qualifying shareholders benefit from the fund's earnings.

Distribution Breakdown

For the distribution cycle, the calculated rate derived from the recent financial data illustrates a distribution rate of 10.76% based on the NAV of $10.82, and an 11.28% rate in relation to the closing market price of $10.32. This data offers a clear picture of the fund's performance and commitment to delivering solid returns.

Understanding the Fund's Objectives and Strategy

The primary aim of First Trust Senior Floating Rate Income Fund II is to achieve a high level of current income for its investors. This goal is pursued through investments predominantly in senior secured floating-rate corporate loans. These strategic decisions position the fund to navigate the market while securing returns.

Investment Composition

As part of its investment strategy, the fund seeks to direct over 80% of its managed assets towards lower-rated, high-yield debt instruments. This emphasis allows it to capitalize on potentially higher returns, albeit with a commensurate risk profile associated with those investments.

Financial Oversight and Management

Managed by First Trust Advisors L.P. (FTA), a reputable federally registered investment advisor, the fund has the expertise to navigate complex financial landscapes. With approximately $256 billion in assets under management, FTA aims to enhance investors' portfolios through a meticulous approach to financial management.

Investment Risks to Consider

Investing comes with inherent risks, and the fund is no exception. Key principal risks include market risk, credit risk, and liquidity risk. Investors should be aware that the market value of their investments may fluctuate due to various economic factors, which could affect the portfolio's performance. This awareness is crucial for making informed investment decisions.

Concluding Insights on the Fund

Those considering investing in the First Trust Senior Floating Rate Income Fund II should approach the opportunity with an understanding of the associated risks and potential returns. As always, investors are encouraged to conduct thorough due diligence and consult with financial professionals to tailor strategies that align with individual financial goals.

Frequently Asked Questions

What is the distribution amount for the upcoming month?

The upcoming distribution amount is set at $0.097 per share for the First Trust Senior Floating Rate Income Fund II.

When will the distribution be paid?

The distribution is slated for payment on the 18th of the month following the record date.

How does the fund maintain its distribution levels?

The fund seeks to provide stable monthly distributions through sound management strategies, primarily focusing on income-generating investments.

What kind of investments does the fund focus on?

The fund primarily focuses on senior secured floating-rate corporate loans, targeting underperforming loans for potential higher returns.

What should investors know about the risks?

Investors should be aware of market, credit, and liquidity risks, as the value of the fund's investments can fluctuate based on various economic conditions.

About The Author

Riley Hayes here, a financial writer and specialist committed to assisting individuals in navigating the intricate world of finance. My love is using my blog and articles to simplify complex financial ideas into understandable, doable guidance. Having worked in finance for many years, I try to give my readers the information and resources they need to make wise financial choices.

Writing for several financial blogs has let me connect with a wide range of readers, from novice investors seeking new ideas to seasoned investors. My mission is to make money interesting and approachable so you may take charge of your financial future. I appreciate you traveling with me toward success and financial literacy.

Contact Riley Hayes privately here. Or send an email with ATTN: Riley Hayes as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.