First Trust Mortgage Income Fund Announces Changes to Investment Strategy
July 29 2015 - 4:52PM
Business Wire
First Trust Mortgage Income Fund (NYSE: FMY) (the “Fund”)
announced today that the Board of Trustees of the Fund has approved
certain changes to the Fund’s investment strategy as described in
the table below. The Fund is a diversified, closed-end management
investment company that seeks to provide a high level of current
income. As a secondary objective, the Fund seeks to preserve
capital. The Fund pursues these investment objectives by investing
primarily in mortgage-backed securities representing part ownership
in a pool of either residential or commercial mortgage loans that,
in the opinion of the Fund’s investment sub-advisor, offer an
attractive combination of credit quality, yield and maturity. The
Fund’s investment objectives are not changing. The Fund’s
investment strategy that is changing is non-fundamental and the
changes are not required to be approved by shareholders. The Fund
anticipates implementing the changes to the investment strategy
beginning on or around October 5, 2015.
Current Investment Strategy
New Investment Strategy
The Fund may invest up to 25% of its managed assets in securities
that at the time of investment are rated below “A” (at or below the
investment grade ratings of “Baa,” “BBB,” and “BBB” by Moody’s
Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings
Group, a division of the McGraw-Hill Companies, Inc. (“S&P”)
and Fitch Ratings, Inc. (“Fitch”)), each a nationally recognized
statistical rating organization (“NRSRO”), or were unrated but
judged to be of comparable quality by Brookfield Investment
Management Inc. (“Brookfield”), the Fund’s investment sub-advisor.
The Fund may invest up to 35% of its managed assets in securities
that at the time of investment are rated below “BBB-” or the
equivalent (i.e. below investment grade rating) by NRSROs such as
Moody’s, S&P, Fitch, DBRS, Inc., Kroll Bond Rating Agency,
Inc., or Morningstar Credit Ratings, LLC, or were unrated but
judged to be of comparable quality by Brookfield.
The Fund’s credit risk will increase as a result of its new
investment strategy. Credit risk is generally the risk that a
security in the Fund’s portfolio will decline in price or the
issuer of the security will fail to make payments when due because
the issuer of the security experiences a decline in its financial
status.
First Trust Advisors L.P., the Fund’s investment advisor, along
with its affiliate, First Trust Portfolios L.P., are privately-held
companies which provide a variety of investment services, including
asset management and financial advisory services, with collective
assets under management or supervision of approximately $118
billion as of June 30, 2015, through unit investment trusts,
exchange-traded funds, closed-end funds, mutual funds and separate
managed accounts.
Brookfield Investment Management Inc. (“Brookfield”) has served
as the Fund’s investment sub-advisor since April 2011. Brookfield
is a wholly-owned subsidiary of Brookfield Asset Management, a
global alternative asset manager with over $200 billion in assets
under management as of June 30, 2015. Brookfield Asset Management
has over a 100-year history of owning and operating assets with a
focus on property, renewable power, infrastructure and private
equity. Brookfield Asset Management’s public market activities are
conducted by Brookfield, a registered investment advisor, with $18
billion of assets under management as of June 30, 2015.
The Fund’s daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150729006771/en/
First Trust Mortgage Income FundPress Inquiries: Jane Doyle,
630-765-8775Analyst Inquiries: Jeff Margolin, 630-915-6784Broker
Inquiries: Jeff Margolin, 630-915-6784
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