Notes to Financial Statements
FIRST TRUST STRATEGIC HIGH INCOME FUND II
APRIL 30, 2007 (UNAUDITED)
1. FUND DESCRIPTION
First Trust Strategic High Income Fund II (the "Fund") is a diversified, closed-end management investment
company organized as a Massachusetts business trust on January 18, 2006 and is registered with the Securities
and Exchange Commission ("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act").
The Fund trades under the ticker symbol FHY on the New York Stock Exchange ("NYSE").
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 non-investment grade and investment grade debt securities, and equity securities that Valhalla Capital
Partners LLC ("Valhalla" or the "Sub-Advisor") believes offers an attractive yield and/or capital appreciation
potential. There can be no assurance that the Fund will achieve its investment objectives. The Fund may not be
appropriate for all investors.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
of its financial statements. The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is computed based upon the value of the Fund's
portfolio securities and other assets less any accrued liabilities. The NAV is determined as of the close of regular
trading on the NYSE, normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. Domestic
debt securities and foreign securities are priced using