First Trust Senior Floating Rate Income Fund II Overview
Pro stress-test →First Trust Senior Floating Rate Income Fund II is a diversified, closed-end management investment company that seeks a high level of current income by investing primarily in a portfolio of senior secured floating-rate corporate loans. The fund is launched and managed by First Trust Advisors L.P. As of June 2026, the fund is undergoing a transformational restructuring.
Strategic Profile
Pro stress-test →On June 25, 2026, shareholders approved the reorganization of FCT with and into First Trust Flexible Income ETF, with the reorganization expected to close on August 10, 2026. As a secondary objective, the Fund attempts to preserve capital. Under normal market conditions, the Fund invests at least 80% of its Managed Assets in lower grade debt instruments.
Competitive Landscape
Pro stress-test →FCT competes in the senior secured floating-rate loan fund market, where alternative income-focused closed-end funds and ETFs seek to provide current income from below-investment-grade corporate debt. The fund's transition to ETF structure reflects broader industry trends favoring lower-cost, tax-efficient vehicle formats. The fund benchmarks its portfolio against the S&P/LSTA Leveraged Loan Index.
Industry Context
First Trust Senior Floating Rate Income Fund II operates in Senior floating-rate loan funds.
Key facts
Founded: 2004 · Headquarters: Wheaton, Illinois, US · Revenue: $26.09 million (2025) · Market cap: N/A