First Trust Intermediate Duration Fund Announces Monthly Dividend

First Trust Intermediate Duration Preferred & Income Fund Dividend Announcement

First Trust Intermediate Duration Preferred & Income Fund (NYSE: FPF) has officially declared a distribution for its shareholders. The fund's monthly common share distribution amounts to $0.1375 per share. This distribution highlights the fund's commitment to providing reliable returns to its investors.

Details of the Monthly Distribution

Shareholders can expect the distribution payable on the scheduled date, specifically on the 15th of next month. For those holding shares as of the first of the month, this distribution will be allocated accordingly. The relevant ex-dividend date is also set for the first of that month, enabling shareholders to maintain their financial projections.

Distribution Metrics

The distribution rate is competitive, calculated based on various reference points. Considering the NAV as of a recent date, the distribution rate stands at an impressive 8.30%, while the closing market price presents a slightly higher rate of 8.66%. These metrics demonstrate the fund's ongoing capacity to deliver value to its investors.

Sources of Distribution

Interestingly, most, if not all, of the distribution comes from net investment income gathered by the Fund. Some parts may originate from short-term realized capital gains or the return of capital. This information is crucial as it gives investors a clearer picture of the sustainability and implications of their returns for the ongoing year.

Investment Strategy of the Fund

As a diversified, closed-end management investment company, the Fund aims to deliver a high current income level while also pursuing capital appreciation opportunities. This dual objective is achieved by channeling investments into preferred and other income-generating securities. The Fund maintains a strategy to invest a significant portion, at least 80%, of its Managed Assets in a diverse array of securities, which includes both U.S. and international firms.

First Trust Advisors L.P. and Portfolio Management

Serving as the investment advisor for the Fund, First Trust Advisors L.P. (FTA) manages approximately $241 billion in assets. Their expertise in handling unit investment trusts, closed-end funds, and exchange-traded funds positions the Fund advantageously in the investment landscape.

Role of Stonebridge Advisors

Stonebridge Advisors LLC serves as a key investment sub-advisor, focusing on preferred and hybrid securities. With nearly $12.3 billion in assets under supervision, Stonebridge contributes its specialized knowledge, ensuring that the Fund effectively navigates market challenges.

Understanding Investment Risks

Investing inherently comes with risks; for this Fund, especially risks like market fluctuations and interest rate changes could affect the value of investments. Investors should remain aware that the value of shares may not always reflect their initial investment, and market conditions can lead to potential shortfalls.

Market Conditions and Their Impact

Current market conditions present their unique set of risks influenced by various global factors, including economic upheavals, geopolitical tensions, or even health crises like the COVID-19 pandemic. These factors can lead to increased volatility, affecting investment performance.

Final Thoughts on Investing in FPF

Investor vigilance is essential as various risk elements accompany investments in the Fund. The management’s approach towards a steady distribution strategy seeks to alleviate some uncertainty. First Trust’s guiding principles aim to mitigate risks while seeking profitable outcomes in the challenging investment landscape.

Frequently Asked Questions

What is the amount of the monthly distribution for FPF?

The Fund has declared a monthly distribution of $0.1375 per share.

When will the distribution be paid out?

The distribution is scheduled to be paid on the 15th of next month to shareholders of record as of the first of that month.

What sources contribute to the distribution?

The majority of the distribution comes from net investment income, with some portions possibly coming from realized capital gains or capital returns.

How does First Trust Advisors manage the Fund?

First Trust Advisors L.P. serves as the investment advisor, overseeing a wide range of investment vehicles and focusing on strategic growth.

What are the risk factors associated with this fund?

Investors may face several risks, including market volatility, fluctuations in investment value, and risks related to specific sectors or investment types that may impact performance.

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