First Trust/Four Corners Senior Floating Rate Income Fund II (FCT)

Frequently Asked Questions About First Trust/Four Corners Senior Floating Rate Income Fund II (FCT)

Can individual investors buy shares of FCT?

Yes, individual investors can purchase shares of First Trust/Four Corners Senior Floating Rate Income Fund II on the New York Stock Exchange under the ticker symbol 'FCT'. Shares can be bought through brokerage accounts in a manner similar to purchasing stocks, providing accessibility to a diversified portfolio of senior floating-rate loans.

Does FCT have a history of performance?

FCT has a performance history reflecting its investment strategy and market conditions. Investors can review historical returns through official sources such as the fund's website or financial platforms. It’s important for potential investors to analyze performance data over varying periods to better understand the fund's resilience and performance consistency.

Does FCT have any international exposure?

First Trust/Four Corners Senior Floating Rate Income Fund II primarily focuses on U.S. corporate borrowers for its floating-rate loans. While the fund is mainly concentrated in the domestic market, foreign investments may occasionally arise, depending on credit opportunities and market assessments, thus introducing a degree of international exposure.

How can I find out more about FCT's holdings?

To learn more about the holdings of First Trust/Four Corners Senior Floating Rate Income Fund II, investors can visit the fund's official website or review its periodic reports. These resources provide transparency regarding the current portfolio, showcasing the types of loans held, borrower diversification, and other relevant investment insights.

How does FCT respond to rising interest rates?

The structure of First Trust/Four Corners Senior Floating Rate Income Fund II is designed to be less sensitive to rising interest rates compared to fixed-rate bonds. Since the fund invests in floating-rate loans, the interest payments adjust periodically based on market rates. This feature can help investors maintain income levels during periods of rising interest rates, making FCT appealing for income-seeking investors in such environments.

How is the distribution of income handled by FCT?

First Trust/Four Corners Senior Floating Rate Income Fund II distributes income to its shareholders on a regular basis. Typically, distributions are paid monthly and can consist of net investment income generated by its floating-rate loan portfolio. The fund's commitment to provide predictable income can make it a suitable option for income-focused investors.

How often can investors expect updates about FCT?

Investors in First Trust/Four Corners Senior Floating Rate Income Fund II can expect regular updates regarding the fund's performance, holdings, and market commentary. The fund typically publishes monthly reports, quarterly updates, and annual shareholder letters to keep investors informed about changes, performance metrics, and overall strategy.

Is FCT suitable for conservative investors?

While First Trust/Four Corners Senior Floating Rate Income Fund II is designed to provide income through floating-rate loans, it may not be entirely suitable for very conservative investors due to the inherent risks associated with credit and market conditions. It may be better suited for investors looking for potential income generation while accepting a moderate level of risk associated with senior loans.

What are the risks associated with investing in FCT?

Investing in First Trust/Four Corners Senior Floating Rate Income Fund II carries several risks including credit risk, interest rate risk, and liquidity risk. Given that FCT holds floating-rate loans, changes in market interest rates can affect the income generated. Additionally, the creditworthiness of the borrowers is crucial since defaults may lead to financial losses for the fund.

What does First Trust/Four Corners Senior Floating Rate Income Fund II (NYSE:FCT) do?

First Trust/Four Corners Senior Floating Rate Income Fund II (NYSE:FCT) is a closed-end fund that primarily seeks to provide a high level of current income by investing in a diversified portfolio of senior floating-rate loans. The fund aims to leverage the floating rate nature of its investments to help protect against rising interest rates, thus providing a potentially attractive income stream for investors.

What is the average duration of the loans held by FCT?

First Trust/Four Corners Senior Floating Rate Income Fund II typically focuses on managing a portfolio with a shorter duration compared to traditional fixed-income funds. The precise average duration can vary based on the current market conditions and investment choices, but generally, the floating-rate loans have lower duration metrics, which equate to lesser interest rate sensitivity.

What is the fee structure for investing in FCT?

First Trust/Four Corners Senior Floating Rate Income Fund II has an expense ratio associated with its operation, which includes management fees, administrative costs, and other expenses. Potential investors should review the fund's prospectus for detailed information on fees and expenses, as these can impact overall returns on investment.

What is the investment strategy of FCT?

The investment strategy of First Trust/Four Corners Senior Floating Rate Income Fund II involves actively managing a portfolio of senior floating-rate loans while adhering to a disciplined investment process. The fund aims to identify loans with attractive yield opportunities while diversifying the borrower base to mitigate overall risk. Additionally, the strategy seeks to capitalize on changes in market conditions to enhance returns.

What is the role of leverage in FCT's investment strategy?

Leverage can play a role in First Trust/Four Corners Senior Floating Rate Income Fund II's investment strategy, allowing the fund to borrow capital to enhance its investment capability. By using leverage, the fund aims to magnify returns on its floating-rate loans. However, it also introduces additional risk, as leveraged investments can lead to amplified losses during adverse market conditions.

What is the significance of the floating-rate loans for FCT?

Floating-rate loans are central to First Trust/Four Corners Senior Floating Rate Income Fund II's investment approach. They offer the advantage of adjusting interest rates, which can provide a hedge against rising borrowing costs and inflation. As interest rates increase, the yields on these loans may also rise, making them a potentially attractive investment during such periods.

What market conditions can significantly impact FCT's performance?

First Trust/Four Corners Senior Floating Rate Income Fund II's performance can be significantly impacted by market conditions including interest rate environments, economic cycles, and default rates on loans. For example, rising interest rates can enhance income from floating-rate loans, while economic downturns could increase the likelihood of borrower defaults, affecting the fund's performance.

What resources are available for investors to make informed decisions about FCT?

Investors can access a variety of resources to make informed decisions regarding First Trust/Four Corners Senior Floating Rate Income Fund II, including the fund's official website, financial news platforms, performance reports, and investment research publications. Additionally, speaking with a financial advisor can provide personalized insights based on individual financial goals.

What types of investments does FCT focus on?

FCT primarily invests in senior secured floating-rate loans which are typically made to corporate borrowers. These loans are generally considered less risky than other fixed-income securities as they have priority in the capital structure, allowing for better recovery rates in the event of borrower defaults. The fund may also invest in other senior-secured and subordinated debt instruments.

Who manages the First Trust/Four Corners Senior Floating Rate Income Fund II?

The fund is managed by First Trust Advisors L.P., which is an established player in the asset management industry. They employ a team of experienced portfolio managers and analysts who utilize a disciplined investment process to select floating-rate loans, focusing on credit quality and risk assessment to achieve the fund's investment objectives.

What is the current price of First Trust/Four Corners Senior Floating Rate Income Fund II?

The current price of First Trust/Four Corners Senior Floating Rate Income Fund II is 9.350

When was First Trust/Four Corners Senior Floating Rate Income Fund II last traded?

The last trade of First Trust/Four Corners Senior Floating Rate Income Fund II was at 2:50 pm EDT on April 4th, 2025