October 23, 2021

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First Trust Mortgage Income Fund Declares its Monthly Common Share Distribution of $0.06 Per Share for April

The First Trust Mortgage Income Fund (the “Fund”) (NYSE: FMY) has scheduled monthly distribution of $ 0.06 per share of common stock, effective April 15, 2021 to shareholders of record on April 5, 2021 is to be paid, declares the ex-dividend day is expected to be April 1, 2021. The monthly distribution information for the Fund is set out below.

First Trust Mortgage Income Fund (FMY):

Distribution per share:

$ 0.06

Payout Rate based on the Net Asset Value on March 19, 2021 of $ 14.21:


Payout rate based on closing price on March 19, 2021 of $ 13.40:


Part of this distribution can come from the investment result, the short-term realized net capital gains or the return on capital. The final determination of the source and tax status of all distributions paid in 2021 will be made after the end of 2021 and will be provided on Form 1099-DIV.

The fund is a diversified, closed-ended management investment company that aims to generate high levels of ongoing income. The fund aims to preserve capital as a secondary objective. The Fund pursues these investment objectives by investing primarily in mortgage-backed securities which are part of a pool of residential or commercial mortgage loans that the Fund’s portfolio managers believe offer an attractive combination of credit quality, yield and duration.

First Trust Advisors LP (“FTA”) is a government registered investment advisor and acts as the investment advisor to the Fund. FTA and its subsidiary First Trust Portfolios LP (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. FTA manages or supervises approximately $ 179 billion of collective assets as of February 28, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds, and separate managed accounts. FTA is the supervisor of the investment trusts of the First Trust Unit, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange traded fund formation units. FTA and FTP are based in Wheaton, Illinois.

Past performance is no guarantee of future results. The return on investment and the market value of an investment in the Fund will fluctuate. When stocks are sold, they can be worth more or less than their original cost. There can be no guarantee that the investment objectives of the Fund will be achieved. The fund may not be suitable for all investors.

Main Risk Factors: Securities held by a Fund, as well as shares in a Fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. The units of a fund may lose value or underperform other investments due to the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious diseases or other public health problems, recessions or other events could have a material adverse effect on a Fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more than others. The December 2019 outbreak of the respiratory disease known as COVID-19 has created significant volatility and declines in global financial markets, resulting in losses for investors. The COVID-19 pandemic can last for an extended period of time and will continue to have an impact on the economy for the foreseeable future.

The debt securities in which the Fund invests are subject to certain risks including issuer risk, reinvestment risk, prepayment risk, credit risk, interest rate risk and liquidity risk. Issuer risk is the risk that the value of fixed income securities will decline for a number of reasons directly related to the issuer. Reinvestment risk is the risk that income from the Fund’s portfolio will decrease if the Fund invests the proceeds of maturing, traded or bonded bonds at market rates below the current rate of return of the Fund’s portfolio. The prepayment risk is the risk that a prepayment will reduce the actual outstanding debt, from which the fund generates interest income. The credit risk is the risk that an issuer of a security cannot or does not want to make dividend, interest and / or principal payments when due and the value of a security may decline as a result. Interest rate risk is the risk that fixed income securities will lose value due to changes in market interest rates. Liquidity risk is the risk that illiquid and restricted securities will be difficult to value and sell at a fair price at times when the Fund deems it desirable.

A mortgage-backed security can be adversely affected by the quality of the underlying mortgages and the structure of its issuer. For example, if a mortgage underlying a particular mortgage-backed security defaults, the value of that security may decline. In addition, a downturn in residential or commercial real estate markets or a general economic downturn could adversely affect both the price and liquidity of privately issued mortgage-backed securities. A portion of the Fund’s assets under management may be invested in subordinated classes of mortgage-backed securities. Such subordinated classes are subject to a higher risk of non-payment than senior classes from the same issuer or agency.

To the extent that a Fund invests in floating rate or floating rate obligations that use the London Interbank Offered Rate (“LIBOR”) as the reference rate, it is subject to LIBOR risk. The UK Financial Conduct Authority, which regulates LIBOR, will no longer make LIBOR available as a reference interest rate for an expiry period that begins immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or returns of certain fund investments and may result in costs associated with closing positions and entering into new deals. The potential impact of the transition from LIBOR on the Fund or on certain instruments in which the Fund invests may be difficult to determine. They can vary depending on a large number of factors and result in losses for the fund.

Investments in asset-backed or mortgage-backed securities offered by non-governmental issuers such as commercial banks, savings and loan companies, private mortgage insurers, mortgage lenders and other secondary market issuers are subject to additional risks.

The main risks associated with the use of futures contracts are (a) the incomplete correlation between the change in the market value of the instruments or indices underlying the futures contracts and the price of the futures contracts; (b) the possible absence of a liquid secondary market in a futures contract and the consequent inability to enter into a futures contract if requested; (c) losses from unexpected market movements, which may be unlimited; (d) the inability of the Investment Adviser to correctly predict the direction of security prices, interest rates, foreign exchange rates and other economic factors; and (e) the possibility that the other party may default in performing its obligations.

When a security sells short, the Fund may have to cover its short sales at a price greater than the short price, resulting in a loss.

Repurchase agreements are subject to the risk of default. If the counterparty to the Fund fails to meet its obligations and the Fund delays or prevents the recovery of the collateral or if the collateral is insufficiently valued, the Fund may realize a loss.

The use of leverage can add additional risks and costs, and heighten the effects of losses.

The risks of investing in the Fund are set out in shareholder reports and other regulatory documents.

The information presented does not constitute investment advice or advice to any particular person. In providing this information, First Trust does not undertake to provide fiduciary advice within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Finance professionals are responsible for independently assessing investment risks and independently assessing whether investments are suitable for their clients.

The daily closing price of the Fund on the New York Stock Exchange and the Net Asset Value per Share and other information can be found at www.ftportfolios.com or by phone at 1-800-988-5891.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210322005790/de/


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