First Trust Mortgage Income Fund Decreases its Monthly Common Share Distribution to $0.065 Per Share for August
July 20 2016 - 5:08PM
Business Wire
First Trust Mortgage Income Fund (the “Fund”) (NYSE: FMY) has
decreased its regularly scheduled monthly common share distribution
to $0.065 per share from $0.075 per share. The distribution is
payable on August 15, 2016, to shareholders of record as of August
3, 2016. The ex-dividend date is expected to be August 1, 2016. The
monthly distribution information for the Fund appears below.
First Trust Mortgage
Income Fund (FMY):
Distribution per share: $0.065 Distribution Rate
based on the July 19, 2016 NAV of $15.48: 5.04% Distribution Rate
based on the July 19, 2016 closing market price of $14.52: 5.37%
Decrease from previous distribution of $0.075: -13.33%
A portion of this distribution may come from net investment
income, net short-term realized capital gains or return of capital.
For the fiscal year-to-date November 1, 2015, through June 30,
2016, it is estimated that FMY has over distributed its tax basis
net investment income by approximately 54%. This percentage can
change based upon the Fund’s activity from June 30, 2016 through
its fiscal year-end, October 31, 2016. The final determination of
the source and tax status of all distributions paid in 2016 will be
made after the end of 2016 and will be provided on Form 1099
DIV.
As a result of the continued decline in interest rates and the
expectation that they will remain low, a reduction in FMY’s monthly
distribution is necessary to bring it more in line with its current
earnings. The Fund holds a large portion of its assets in higher
credit quality investment grade securities. Therefore, the Fund’s
earnings are more significantly impacted by a lower interest rate
environment than a lower credit quality portfolio. It is
anticipated that the Fund will perform better 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 $96 billion
as of June 30, 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 a wholly-owned
subsidiary of Brookfield Asset Management, a global alternative
asset manager with $240 billion in assets under management as of
March 31, 2016. 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 over $16 billion
of assets under management as of March 31, 2016.
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/20160720006461/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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