Monthly Dividend Announcement for First Trust Income Fund
First Trust Intermediate Duration Preferred & Income Fund Announces Monthly Distribution
First Trust Intermediate Duration Preferred & Income Fund (the "Fund") (NYSE: FPF) has announced its latest monthly common share distribution of $0.1375 per share. This distribution reflects the Fund's ongoing commitment to providing income to its shareholders. Shareholders can expect to receive payment on the 15th of the month, with the record date set for the start of November.
Monthly Distribution Details
The Fund has established a routine of distributing $0.1375 per share, a strategy that aims to support shareholder value. As per the latest data, the distribution rate, calculated based on the NAV of $19.98 from October, stands at approximately 8.26%, while the market price distribution rate is estimated at 8.53% based on a closing price of $19.35.
Understanding the Fund's Investment Strategy
The Fund is designed not only to provide current income but also aims for capital appreciation. The investment strategy focuses on a diversified portfolio consisting mainly of preferred and other income-generating securities. Under normal circumstances, the Fund capitalizes on its Managed Assets by investing at least 80% in various qualifying securities:
- Traditional preferred stocks
- Hybrid preferred securities that share characteristics of both preferred and debt securities
- Floating-rate and fixed-to-floating rate securities
- Convertible securities
- Contingent convertible securities
This approach aids the Fund in navigating market dynamics while striving to meet its objectives effectively.
Risk Factors to Consider
Investing involves inherent risks, and the Fund is no exception. Among the primary risk factors to consider are:
- Market fluctuations due to economic conditions, political events, and regulatory changes.
- Potential volatility caused by interest rate changes and local or global events.
- Credit risk, specifically concerning issuers unable to fulfill payment obligations.
- Variability in the floating or variable rate obligations tied to benchmark interest rates, such as LIBOR.
Investors should review the Fund's annual reports for a comprehensive description of all associated risks.
Investment Management and Advisor Details
First Trust Advisors L.P. serves as the Fund's investment advisor, drawing upon its extensive experience. The firm oversees approximately $245 billion in assets as of late September, confirming its capabilities in managing diverse investment vehicles including ETFs, mutual funds, and closed-end funds.
Partnership with Stonebridge Advisors
The Fund also collaborates with Stonebridge Advisors LLC, specializing in investments in preferred and hybrid securities. This partnership is essential for leveraging expertise in managing over $12.9 billion in assets, ensuring that investor interests are adequately represented and managed with care.
Investor Guidance and Resources
While obtaining potential returns, investors should remain cognizant of the risks and evaluate their strategies accordingly. It is recommended to consult with financial professionals regarding the viability of such investments based on individual risk tolerance and market conditions.
Frequently Asked Questions
What is the monthly distribution amount declared by the Fund?
The Fund has declared a monthly distribution of $0.1375 per share.
When will shareholders receive the distribution payment?
Shareholders can expect to receive their distribution payment on the 15th of the month.
What is the investment strategy of the Fund?
The Fund primarily invests in preferred and other income-producing securities, with a focus on capital appreciation as well.
What risks should investors be aware of?
Investors should consider market risk, credit risk, interest rate risk, and volatility stemming from economic events among other risks.
Who manages the Fund's investments?
The investment management is conducted by First Trust Advisors L.P., in collaboration with Stonebridge Advisors LLC.
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