First Trust Advisors Announces Results of Annual Shareholder Meeting for First Trust Mortgage Income Fund
April 26 2018 - 4:58PM
Business Wire
First Trust Advisors L.P. (“FTA”) announced today that
shareholders of First Trust Mortgage Income Fund (NYSE: FMY) (the
“Fund”) voted at the annual meeting of shareholders to elect
Richard E. Erickson and Thomas R. Kadlec as Class II Trustees to
continue to serve as members of the Board of Trustees of the Fund
for a three year term. 88.56% of the Fund’s outstanding shares were
voted in favor of Dr. Erickson, and 88.64% of the Fund’s
outstanding shares were voted in favor of Mr. Kadlec. James A.
Bowen, Niel B. Nielson and Robert F. Keith are current and
continuing Trustees of the Fund.
In addition, shareholders of the Fund voted at the annual
meeting against a shareholder’s proposal requesting the Board of
Trustees to authorize a self-tender offer for all outstanding
common shares of the Fund at or within 2% of net asset value. The
shareholder’s proposal also stated that “If more than 50% of the
Fund’s outstanding common shares are submitted for tender, the
Board is requested to cancel the tender offer and take those steps
that the Board is required to take to cause the Fund to be
liquidated or converted to (or merged with) an exchange traded fund
or an open-end mutual fund.” Over 95% of the shares voted at the
meeting, representing over 66% of the Fund’s outstanding shares,
voted against the shareholder’s proposal and as a result, the
shareholder’s proposal did not pass.
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 portfolio managers, offer an attractive
combination of credit quality, yield and maturity.
FTA has served as the Fund’s investment advisor since the Fund’s
inception. FTA 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 $121 billion as of March 31, 2018
through unit investment trusts, exchange-traded funds, closed-end
funds, mutual funds and separate managed accounts.
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: The debt securities in which
the Fund invests are subject to certain risks, including issuer
risk, reinvestment risk, prepayment risk, credit risk, and interest
rate risk. Issuer risk is the risk that the value of fixed-income
securities may decline for a number of reasons which directly
relate to the issuer. Reinvestment risk is the risk that income
from the Fund’s portfolio will decline if the Fund invests the
proceeds from matured, traded or called bonds at market interest
rates that are below the Fund portfolio’s current earnings rate.
Prepayment risk is the risk that, upon a prepayment, the actual
outstanding debt on which the Fund derives interest income will be
reduced. Credit risk is the risk that an issuer of a security will
be unable or unwilling to make dividend, interest and/or principal
payments when due and that the value of a security may decline as a
result. Interest rate risk is the risk that fixed-income securities
will decline in value because of changes in market interest
rates.
A portion of the Fund’s managed assets may be invested in
subordinated classes of mortgage-backed securities. Such
subordinated classes are subject to a greater degree of non-payment
risk than are senior classes of the same issuer or agency.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA
and the Internal Revenue Code. First Trust has no knowledge of and
has not been provided any information regarding any investor.
Financial advisors must determine whether particular investments
are appropriate for their clients. First Trust believes the
financial advisor is a fiduciary, is capable of evaluating
investment risks independently and is responsible for exercising
independent judgment with respect to its retirement plan
clients.
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 Advisors L.P.Inquiries: Jeff Margolin - (630)
915-6784
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