First Trust Mortgage Income Fund Announces Monthly Distribution

First Trust Mortgage Income Fund Declares Monthly Distribution

The First Trust Mortgage Income Fund (NYSE: FMY) has officially declared its monthly common share distribution, which will amount to $0.075 per share. This distribution is set to be paid on October 15 of this year, showcasing the Fund’s ongoing commitment to providing income to its shareholders.

Details on the Distribution Process

Shareholders should note that they will need to be on record by October 1 to receive this distribution. The ex-dividend date, which signifies when new buyers of the stock will not receive the scheduled dividend, will also fall on October 1. This critical timeline allows shareholders to plan ahead for their investments effectively.

Distribution Amount and Rate Insights

For our readers interested in the financial specifics, the Fund's recent distribution represents a monthly payment that equates to a 6.89% yield based on the net asset value (NAV) of $13.07 as of September 18. Additionally, when considering the closing market price of $12.55, the effective annual yield slightly increases to 7.17%. These percentages indicate a stable return for investors and underline the Fund's commitment to offering competitive yields.

Fund Objectives and Investment Strategy

The core goal of the First Trust Mortgage Income Fund is to deliver high current income to its investors, while simultaneously striving to maintain and preserve capital. To reach these objectives, the Fund mainly invests in mortgage-backed securities which consist of various residential and commercial mortgage loans. Portfolio managers assess these securities for a strategic combination of credit quality, yield, and maturity.

Insights About First Trust Advisors L.P.

First Trust Advisors L.P. (FTA) serves as an essential investment adviser for the Fund. FTA manages approximately $241 billion in assets across various investment vehicles, which reinforces its experience and ability to make informed investment decisions. Through its affiliate, First Trust Portfolios L.P. (FTP), FTA ensures a comprehensive approach to investment management, catering to the diverse needs of its clientele.

Understanding Investment Risks

As with all investments, the First Trust Mortgage Income Fund does come with its set of risks. Understanding these risks is vital for current and potential investors. Examples include market risk, where investments may decline due to untimely economic changes, and credit risk, where an issuer may fail to meet its payment obligations.

Moreover, the current global situation, including geopolitical tensions and economic instability, heightens these risks. For instance, conflicts in various regions may contribute to significant market volatility and could affect the Fund's performance. Investors should thoroughly assess their risk tolerance and consider how these factors could influence their investment strategy.

Daily Market Information Accessibility

For those tracking the performance of the Fund, daily updates regarding the closing price on the New York Stock Exchange, as well as net asset value per share, can be easily accessed via the official website of First Trust. This transparency ensures investors stay informed about changes that may impact their investments.

Frequently Asked Questions

What is the monthly distribution amount for the First Trust Mortgage Income Fund?

The monthly distribution amount is $0.075 per share.

When will this distribution be paid?

The distribution will be paid on October 15 of this year.

What is the ex-dividend date?

The ex-dividend date is October 1, which is when investors must hold the shares to receive the distribution.

What are the main objectives of the First Trust Mortgage Income Fund?

The Fund aims to provide high current income while striving to preserve capital.

Where can I find information on the Fund's daily trading status?

Information on daily trading activity can be found on the official First Trust website.

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