First Trust Mortgage Income Fund Decreases its Monthly Common Share Distribution to $0.075 Per Share for March
February 22 2016 - 4:31PM
Business Wire
First Trust Mortgage Income Fund (the “Fund”) (NYSE: FMY) has
decreased its regularly scheduled monthly common share distribution
to $0.075 per share from $0.085 per share. The distribution is
payable on March 15, 2016, to shareholders of record as of March 3,
2016. The ex-dividend date is expected to be March 1, 2016. The
monthly distribution information for the Fund appears below.
First Trust Mortgage
Income Fund (FMY):
Distribution per share: $0.075 Distribution Rate based on
the February 19, 2016 NAV of $15.56: 5.78% Distribution Rate based
on the February 19, 2016 closing market price of $14.15: 6.36%
Decrease from previous distribution of $0.085: -11.76%
The majority, and possibly all, of this distribution will be
paid out of net investment income earned by the Fund. A portion of
this distribution may come from net short-term realized capital
gains or return of capital. The final determination of the source
and tax status of all distributions paid in 2016 will be made after
the end of 2016.
As a result of the continued low interest rate environment and
the Fund holding a majority of its assets in higher credit quality
investment grade securities, a reduction in the Fund’s monthly
distribution is necessary. The Fund is positioned for low
sensitivity to interest rates, which contributes to lower income in
the short term but should support the net asset value in a higher
interest rate environment.
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.
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 $93 billion
as of January 31, 2016 through unit investment trusts,
exchange-traded funds, closed-end funds, mutual funds and separate
managed accounts.
Brookfield Investment Management Inc. (“Brookfield”) serves as
the Fund’s investment sub-advisor. Brookfield is an indirect
wholly-owned subsidiary of Brookfield Asset Management, a global
alternative asset manager with approximately $225 billion in assets
under management as of December 31, 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 nearly $17 billion of assets under management as of
December 31, 2015.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost.
Principal Risk Factors: Investment in this Fund involves
investment and market risk, management risk, credit risk,
prepayment risk, reinvestment risk, interest rate risk, floating
rate CMOs and inverse floating rate CMOs risk, bond market risk,
economic sector risk, inflation risk, U.S. government securities
risk, government agency risk, asset-backed securities risk, market
discount risk, leverage risk, interest rate transactions risk,
derivatives risk, market disruption risk, portfolio turnover risk,
tax risk relating to investments in certain REMICs, and
illiquid/restricted securities risk. The risks of investing in the
Fund are spelled out in the shareholder reports and other
regulatory filings.
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/20160222006582/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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