First Trust Senior Floating Rate Income Fund II (NYSE: FCT) is a diversified, closed-end management investment company that seeks to provide current income with preservation of capital. Listed on the New York Stock Exchange, the fund pursues its objective by investing primarily in senior floating rate loans and other floating rate debt instruments of U.S. and non-U.S. companies. As a closed-end vehicle, FCT issues a fixed number of common shares and may utilize leverage to enhance returns for shareholders.
Under normal market conditions, FCT allocates at least 80% of its managed assets to senior floating rate loans, which are typically secured obligations of corporate borrowers. These loans carry interest rates that periodically reset based on reference rates such as LIBOR or SOFR, helping the fund mitigate interest rate risk. The remaining assets may be invested in other income-producing instruments, including high-yield fixed and floating rate debt securities, bank loans, preferred stock, and certain convertible securities.
The fund is managed by First Trust Advisors L.P., a registered investment adviser with extensive experience in structured credit portfolios and income-oriented strategies. Investment decisions are guided by a team of portfolio managers and credit analysts who conduct fundamental credit research, assess collateral coverage, and monitor debt covenants. FCT’s management agreement provides for a disciplined approach to portfolio construction, diversification and risk management, with an emphasis on senior secured credits.
First Trust Senior Floating Rate Income Fund II primarily serves individual and institutional investors seeking attractive yields in a floating rate format. The fund is domiciled in the United States and governed by a Board of Trustees that oversees its operations, compliance and performance. Through its focus on senior secured floating rate instruments, FCT aims to offer shareholders a potential hedge against rising interest rates while delivering consistent income over a full market cycle.
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