First Trust Strategic High Income Fund Declares its Monthly Common Share Distribution of $0.03 Per Share for September
19 August 2011 - 10:19PM
Business Wire
First Trust Strategic High Income Fund (the "Fund") (NYSE: FHI)
has declared the Fund’s regularly scheduled monthly common share
distribution payable on September 15, 2011 to shareholders of
record as of September 6, 2011. The ex-dividend date is expected to
be September 1, 2011. The monthly distribution information for the
Fund appears below.
First Trust Strategic High Income Fund
(FHI):
Distribution per share: $0.03
Distribution Rate based on the August 17, 2011 NAV of $4.06:
8.87%
Distribution Rate based on the August 17, 2011 closing market
price of $3.69: 9.76%
On August 9, 2011, the Fund announced shareholder approval of a
reorganization of the Fund and First Trust Strategic High Income
Fund III (NYSE: FHO) into First Trust Strategic High Income Fund II
(NYSE: FHY) and the issuance of additional common shares of FHY in
connection with the reorganizations (collectively, the
“Reorganization”). In light of the Reorganization, this
distribution will be paid entirely in cash, with no option for
dividend reinvestment. It is also anticipated that there will be
one additional distribution of the Fund’s remaining undistributed
net investment income, which will also be paid entirely in cash
with no option for dividend reinvestment, prior to the
Reorganization. The Reorganization is tentatively scheduled to
occur on or around September 30, 2011.
Various factors affect the Fund's level of distributable income,
including the asset mix and average maturity of its portfolio
holdings and its use of leverage and hedging. Principal write-downs
by issuers of the Fund’s residential mortgage and other structured
securities have significantly contributed to the Fund’s historical
return of capital distributions. The tax character of the Fund’s
fiscal year to date distributions, including this distribution,
will depend on the Fund’s investment experience up to the date of
the merger, including any additional principal write-downs by the
issuers of the Fund’s securities. While it is uncertain what will
transpire over this period, it is likely that the Fund’s current
year distributions will include a return of capital component. 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 growth. The
Fund pursues these investment objectives by investing up to 100% of
its managed assets in a diversified portfolio of high income
producing securities that the investment sub-advisor believes offer
attractive yield and 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, financial advisory services, and competitive
municipal underwritings, with collective assets under management or
supervision of approximately $51 billion as of July 31, 2011
through unit investment trusts, exchange-traded funds, closed-end
funds, mutual funds and separate managed accounts.
Brookfield Investment Management Inc., the Fund’s investment
sub-advisor, is a global investment advisor focused on specialized
equity and fixed income securities investments. The firm is a
subsidiary of Brookfield Asset Management Inc., a leading global
asset manager with over $150 billion in assets under management as
of June 30, 2011 and over 100 years of experience in the property,
power and infrastructure industries. Brookfield Investment
Management Inc. is an SEC registered investment advisor, and with
its affiliates had approximately $24 billion in assets under
management as of June 30, 2011. Headquartered in New York, the firm
maintains offices and investment teams in Chicago, Boston, London,
Hong Kong, Sydney and Toronto.
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 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.
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