First Trust Mortgage Income Fund Announces Portfolio Management Changes
July 20 2016 - 4:26PM
Business Wire
In May 2016, First Trust Mortgage Income Fund (the “Fund”)
(NYSE: FMY) announced that Schroder Investment Management North
America Inc. (“Schroders”) had reached an agreement with Brookfield
Investment Management Inc. (“Brookfield”), the Fund’s investment
sub-advisor, to acquire the Brookfield portfolio management team
responsible for portfolio management of the Fund (“Acquisition”).
The consummation of the Acquisition will be considered an
“assignment” (as defined in the Investment Company Act of 1940, as
amended) of the investment sub-advisory agreement among the Fund,
Brookfield and First Trust Advisors L.P. (“First Trust”), the
Fund’s investment advisor, which will result in its automatic
termination. According to Schroders, the Acquisition is expected to
be completed in the third quarter of 2016. The consummation of the
Acquisition does not affect the investment management agreement
between the Fund and First Trust.
On July 19, 2016, the Board of Trustees of the Fund approved the
transition of the management of the Fund’s portfolio to the First
Trust Mortgage Securities Team to take effect upon the closing of
the Acquisition. The Mortgage Securities Team of First Trust is led
by Jim Snyder and Jeremiah Charles. Furthermore, First Trust has
agreed to lower the investment management fee payable by the Fund
to First Trust from the current annual rate of 1.00% of the Fund’s
Managed Assets to 0.85% of the Fund’s Managed Assets. The Fund will
begin paying First Trust the lower investment management fee upon
the closing of the Acquisition.
The Fund’s investment objectives and principal investment
strategies will not change as a result of the management
transition. The Fund’s primary investment objective will continue
to be to seek a high level of current income, and the Fund’s
secondary investment objective will continue to be to preserve
capital. The Fund will continue to pursue its investment objectives
by investing in mortgage backed-securities representing part
ownership in a pool of either residential or commercial mortgage
loans.
The Mortgage Securities Team of First Trust also manages the
portfolios of several investment companies including First Trust
Low Duration Opportunities ETF (Nasdaq: LMBS), an actively managed
exchange-traded fund; the mortgage-related investments of First
Trust Strategic Income ETF (Nasdaq: FDIV), a multi-manager,
multi-strategy actively managed exchange-traded fund; the
mortgage-related investments of First Trust Enhanced Short Maturity
ETF (Nasdaq: FTSM), a multi-manager, multi-strategy actively
managed exchange-traded fund; and the mortgage-related securities
of First Trust Multi Income Allocation Portfolio, a multi-manager,
multi-strategy investment vehicle for life insurance companies
writing variable annuity contracts and variable life insurance
contracts.
The Mortgage Securities Team of First Trust is led by Jim Snyder
and Jeremiah Charles. Prior to joining First Trust in 2013, Jim
Snyder worked as a Senior Portfolio Manager at Fort Sheridan
Advisors where he managed mortgage portfolios for institutional
clients. Mr. Snyder has led several mortgage trading and portfolio
groups at Deerfield Capital, Spyglass Capital & Trading and
American Express Financial Advisors. Mr. Snyder managed AXP Federal
Income Fund, and developed mortgage trading strategies for Spyglass
Capital and Deerfield’s Mortgage REIT and Opportunity Fund. Mr.
Snyder holds a B.S. and M.A. in Economics from DePaul University
and an MBA from University of Chicago Booth School of Business.
Prior to joining First Trust in 2013, Jeremiah Charles worked as a
Vice President of Mortgage Product Sales for CRT Capital where he
advised pension funds, hedge funds, and institutional money
managers. Before joining CRT in 2011, Mr. Charles spent 6 years
with Deerfield Capital Management LLC as a Senior Vice President
and Senior Portfolio Manager for the Mortgage Trading team. He
began his professional career as an Analyst at Piper Jaffray. Mr.
Charles holds a B.S. in Finance from the Leeds School of Business
at the University of Colorado, and a M.S. in Real Estate Finance
with Honors from the Charles H. Kellstadt Graduate School of
Business at DePaul University.
First Trust has served as the Fund’s investment manager since
the Fund’s inception. First Trust, 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 $96 billion as of June
30, 2016 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts.
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.
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First Trust Mortgage Income FundJeff Margolin, 630-915-6784
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