First Trust Announces New Investment Sub-Advisor for FHI, FHY and FHO
30 Juni 2009 - 3:04PM
Business Wire
First Trust Advisors L.P. (�First Trust�) today announced that
the Board of Trustees of First Trust Strategic High Income Fund
(NYSE: FHI), First Trust Strategic High Income Fund II (NYSE: FHY)
and First Trust Strategic High Income Fund III (NYSE: FHO) has
voted to approve Hyperion Brookfield Asset Management, Inc.
(�Hyperion�) as investment sub-advisor to the Funds, replacing
Valhalla Capital Partners, LLC. Each Fund has entered into an
interim investment sub-advisory agreement with First Trust and
Hyperion, as investment sub-advisor, effective on June 29, 2009.
The interim sub-advisory agreements will remain in effect until the
earlier of November 26, 2009 or until a new sub-advisory agreement
is approved by the shareholders of each Fund.
Subject to shareholder approval, the Board of Trustees of each
Fund has also approved a change in each Fund�s industry
concentration policy to provide that each Fund may not purchase any
security if, as a result of the purchase, 25% or more of the Fund�s
total assets (taken at current value) would be invested in the
securities of borrowers and other issuers having their principal
business activities in the same industry. Currently, each Fund�s
industry concentration policy states that it will invest at least
25% of its total assets in residential mortgage-backed securities
under normal market conditions.
Shareholders of FHI, FHY and FHO will be asked to vote on a
proposal to approve the new investment sub-advisory agreements with
Hyperion as well as the above-referenced proposal to change the
industry concentration policy for each Fund at a joint special
meeting of shareholders. Any solicitation of proxies made in
connection with this shareholder meeting will only be made pursuant
to separate proxy materials filed with the U.S. Securities and
Exchange Commission (�SEC�) under applicable federal securities
laws. There can be no assurance that the necessary percentage of
the shareholders of each Fund will vote to approve Hyperion as the
new investment sub-advisor or the change in the industry
concentration policy.
The Board of Trustees of FHI also approved a change in
investment policy so that FHI may invest up to 100% of its managed
assets in below-investment grade debt securities (commonly referred
to as �high-yield� or �junk� bonds). This investment policy is
non-fundamental and therefore may be changed by approval of the
Board of Trustees without shareholder approval. The investment
policy will be effective on or about September 1, 2009. Currently
FHI pursues its investment objectives by investing at least 80% 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. High income
producing securities in which the Fund invests consist of
below-investment grade debt securities (high-yield or junk bonds)
and investment grade securities which offer yields comparable to
below-investment grade securities.
Each Fund is a diversified, closed-end management investment
company that seeks to provide a high level of current income. As a
secondary objective, each Fund seeks to provide capital growth.
First Trust has served as the Funds� investment advisor since
each Fund�s inception. First Trust, 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 municipal and corporate investment
banking, with collective assets under management or supervision of
over $19 billion as of May 31, 2009 through closed-end funds, unit
investment trusts, mutual funds, separate managed accounts and
exchange-traded funds.
Hyperion Brookfield Asset Management, Inc. is a registered
investment advisor headquartered in New York City. The firm was
founded in 1989 to provide relative value driven fixed income
investment strategies, such as core fixed income, high yield, and
specialized MBS. Hyperion Brookfield manages approximately $16
billion as of May 31, 2009 for a client base that includes pension
funds, financial institutions, mutual funds, closed-end funds,
insurance companies and foundations. Hyperion Brookfield is a
subsidiary of Brookfield Asset Management Inc., a global asset
manager focused on property, power and other infrastructure assets
with approximately $80 billion of assets under management.
In connection with the solicitation of proxies, the Funds will
file a proxy statement. Because the proxy statement will contain
important information, the Funds� shareholders are urged to read it
carefully when it becomes available. When filed with the SEC, the
proxy statement will be available free of charge at the SEC�s
website, www.sec.gov. The Funds� shareholders will also be able to
obtain copies of these documents and other transaction-related
documents, when available, by calling First Trust toll-free at
800-621-1675. The foregoing is not an offer to sell, nor a
solicitation of an offer to buy, shares of any Fund, nor is it a
solicitation of any proxy.
Each 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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