First Trust Strategic High Income Fund Decreases its Monthly Common Share Distribution to $0.025 Per Share for August
21 Juli 2009 - 12:00AM
Business Wire
First Trust Strategic High Income Fund (the "Fund") (NYSE: FHI)
today decreased its regularly scheduled monthly common share
distribution to $0.025 per share from $0.06 per share. The
distribution will be payable on August 17, 2009 to shareholders of
record as of August 5, 2009. The ex-dividend date is expected to be
August 3, 2009. The monthly distribution and cash balance
information for the Fund appears below.
First Trust Strategic High Income Fund
(FHI):
� Distribution per share: $0.025 Distribution Rate based on the
July 17, 2009 NAV of $2.99: 10.03% Distribution Rate based on the
July 17, 2009 closing market price of $3.54: 8.47% Decrease from
previous distribution of $0.06: -58.33% Cash Balance on July 17,
2009: $1,099,978 or 4.03% of Net Assets
During the Fund�s current fiscal year there have been
significant principal write-downs by issuers of securities
sensitive to residential mortgages and other structured securities
within the Fund�s portfolio. The decrease in the dividend is a
necessary adjustment as a result of these write-downs and the
continued credit deterioration of the underlying income producing
portfolio positions. In determining the distribution policy, the
Fund seeks an amount that it views as sustainable based on the
long-term income potential of the portfolio.
The majority, and possibly all, of this distribution will
consist of return of capital. A portion of this distribution may
come from net investment income. The final determination of the
source and tax status of all distributions paid in 2009 will be
made after the end of 2009.
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 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.
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 municipal and
corporate investment banking, with collective assets under
management or supervision of over $20 billion as of June 30, 2009
through closed-end funds, unit investment trusts, mutual funds,
separate managed accounts and exchange-traded funds.
Hyperion Brookfield Asset Management, Inc., the Fund�s
investment sub-advisor (�Hyperion Brookfield�) 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 June 30, 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 $80 billion of assets under management as of June 30,
2009.
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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