First Trust Senior Floating Rate Income Fund II of Beneficial Interest
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$10.23
- Net Assets:$284.66 Million
- NAV:$11.03
- Premium-7.25%
- Peer Rank:17 of 28
- Investment Rating:C+
- Performance:C+
- RiskB-
We rate First Tr Senior Floating Rte Inc II at C+. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund may be considered for investors seeking a Loan Participation strategy.
Total return ranks above peers over the last three years. The First Tr Senior Floating Rte Inc II has returned an annual rate of 3.36% since inception. More recently, the fund has generated a total return of 5.84% in the last five years, 4.54% in the last three years, and 18.43% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 52% of them. It has also outpaced 58% of its competitors on a three year basis and 75% of them over the last year for the period ending 2/29/2024. On a year to date basis, FCT has returned 3.39%.
Downside risk has been below average. FCT has a draw down risk of -25.02%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 13.6%. This fund has had moderate volatility in its monthly performance over the last 36 months.
Low expense ratio helps performance. On total assets of $284.66 million, FCT maintains a low expense ratio compared to its Loan Participation peers of just 2.08% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As FCT is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The First Tr Senior Floating Rte Inc II has been managed by William A. Housey for the last 13 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 26% of other fund managers.