When a company such as First Trust Strategic High Income Fund II conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the FHY split history from start to finish, an original position size of 1000 shares would have turned into 333.333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into First Trust Strategic High Income Fund II shares, starting with a $10,000 purchase of FHY, presented on a split-history-adjusted basis factoring in the complete FHY split history.

About First Trust Strategic High Income Fund II

First Trust Strategic High Income Fund II (the "Fund") is a newly organized, diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. The Fund seeks capital growth as a secondary objective. The Fund seeks to achieve its investment objectives by investing in a diversified portfolio of below-investment grade and investment grade debt securities, and equity securities. As of Oct 31 2017, the Fund's investment portfolio totaled $134,087,542 and assets totaled $142,278,809. According to our FHY split history records, First Trust Strategic High Income Fund II has had 1 split.

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