First Trust Mortgage Income Fund Declares its Monthly Common Share Distribution of $0.06 Per Share for December
November 19 2020 - 4:48PM
Business Wire
First Trust Mortgage Income Fund (the "Fund") (NYSE: FMY) has
declared the Fund’s regularly scheduled monthly common share
distribution in the amount of $0.06 per share payable on December
15, 2020, to shareholders of record as of December 2, 2020. The
ex-dividend date is expected to be December 1, 2020. The monthly
distribution information for the Fund appears below.
First Trust Mortgage
Income Fund (FMY):
Distribution per share:
$0.06
Distribution Rate based on the November
18, 2020 NAV of $14.37:
5.01%
Distribution Rate based on the November
18, 2020 closing market price of $13.64:
5.28%
A portion of this distribution may come from net investment
income, net short-term realized capital gains or return of capital.
The final determination of the source and tax status of all
distributions paid in 2020 will be made after the end of 2020 and
will be provided on Form 1099-DIV.
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.
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. FTA
and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA
registered broker-dealer, are privately-held companies that provide
a variety of investment services. FTA has collective assets under
management or supervision of approximately $147 billion as of
October 31, 2020 through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts. FTA is the supervisor of the First Trust unit investment
trusts, while FTP is the sponsor. FTP is also a distributor of
mutual fund shares and exchange-traded fund creation units. FTA and
FTP are based in Wheaton, Illinois.
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. There can be no assurance that the Fund’s investment
objectives will be achieved. The Fund may not be appropriate for
all investors.
Principal Risk Factors: Securities held by a fund, as well as
shares of a fund itself, are subject to market fluctuations caused
by factors such as general economic conditions, political events,
regulatory or market developments, changes in interest rates and
perceived trends in securities prices. Shares of a fund could
decline in value or underperform other investments as a result of
the risk of loss associated with these market fluctuations. In
addition, local, regional or global events such as war, acts of
terrorism, spread of infectious diseases or other public health
issues, recessions, or other events could have a significant
negative impact on a fund and its investments. Such events may
affect certain geographic regions, countries, sectors and
industries more significantly than others. The outbreak of the
respiratory disease designated as COVID-19 in December 2019 has
caused significant volatility and declines in global financial
markets, which have caused losses for investors. The COVID-19
pandemic may last for an extended period of time and will continue
to impact the economy for the foreseeable future.
The debt securities in which the Fund invests are subject to
certain risks, including issuer risk, reinvestment risk, prepayment
risk, credit risk, interest rate risk and liquidity 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.
Liquidity risk is the risk that illiquid and restricted securities
may be difficult to value and to dispose of at a fair price at the
times when the Fund believes it is desirable to do so.
A mortgage-backed security may be negatively affected by the
quality of the mortgages underlying such security and the structure
of its issuer. For example, if a mortgage underlying a particular
mortgage-backed security defaults, the value of that security may
decrease. Moreover, a downturn in the markets for residential or
commercial real estate or a general economic downturn could
negatively affect both the price and liquidity of privately issued
mortgage-backed securities. 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.
Many financial instruments use or may use a floating rate based
upon the London Interbank Offered Rate (LIBOR), which is being
phased out by the end of 2021. There remains some uncertainty
regarding the future utilization of LIBOR and the nature of any
replacement rate.
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,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
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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