First Trust Specialty Finance and Financial Opportunities Fund
(the "Fund") (NYSE: FGB) has declared the Fund's regularly
scheduled quarterly distribution of $0.0825 per share. The
distribution will be payable on May 31, 2023, to shareholders of
record as of May 23, 2023. The ex-dividend date is expected to be
May 22, 2023. The quarterly distribution information for the Fund
appears below.
First Trust
Specialty Finance and Financial Opportunities Fund
(FGB):
Distribution per share:
$0.0825
Distribution Rate based on the May 9, 2023
NAV of $3.48:
9.48%
Distribution Rate based on the May 9, 2023
closing market price of $2.90:
11.38%
A portion of the distribution may be treated as paid from
sources other than net investment income, including short-term
capital gain, long-term capital gain and return of capital. The
final determination of the source and tax status of all
distributions paid in 2023 will be made after the end of 2023 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 provide attractive total
return. The Fund pursues these investment objectives by investing
at least 80% of its managed assets in a portfolio of securities of
specialty finance and other financial companies that the Fund's
investment sub-advisor believes offer attractive opportunities for
income and capital appreciation.
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 $194 billion as of April
30, 2023 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.
Confluence Investment Management LLC ("Confluence"), an SEC
registered investment advisor, serves as the Fund's investment
sub-advisor. The Confluence team has more than 500 years of
combined financial experience and 400 years of portfolio
management/research experience, maintaining a track record that
dates back to 1994. As of March 31, 2023, Confluence had $11.7
billion in assets under management and advisement (assets under
management = $7.1 billion; assets under advisement = $4.6
billion).
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the Fund are identified below, which
includes the risk that you could lose some or all of your
investment in the Fund. The principal risks of investing in the
Fund are spelled out in the Fund's annual shareholder reports. The
order of the below risk factors does not indicate the significance
of any particular risk factor. The Fund also files reports, proxy
statements and other information that is available for
review.
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.
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,
natural disasters 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 COVID-19 global pandemic and the
ensuing policies enacted by governments and central banks have
caused and may continue to cause significant volatility and
uncertainty in global financial markets. While vaccines have been
developed, there is no guarantee that vaccines will be effective
against future variants of the disease. Recent and potential future
bank failures could result in disruption to the broader banking
industry or markets generally and reduce confidence in financial
institutions and the economy as a whole, which may also heighten
market volatility and reduce liquidity. Also, in February 2022,
Russia invaded Ukraine which has caused and could continue to cause
significant market disruptions and volatility within the markets in
Russia, Europe, and the United States. These hostilities and
sanctions resulting from these hostilities could have a significant
impact on certain fund investments as well as fund performance. As
the global pandemic and conflict in Ukraine have illustrated such
events may affect certain geographic regions, countries, sectors
and industries more significantly than others. These events also
may adversely affect the prices and liquidity of a fund's portfolio
securities or other instruments and could result in disruptions in
the trading markets. Any of such circumstances could have a
materially negative impact on the value of a fund's shares and
result in increased market volatility. During any such events, a
fund's shares may trade at increased premiums or discounts to its
net asset value and the bid/ask spread on a fund's shares may
widen.
The Fund invests in business development companies ("BDCs")
which may be subject to a high degree of risks, including
management's ability to meet the BDC's investment objective, and to
manage the BDC's portfolio when the underlying securities are
redeemed or sold, during periods of market turmoil and as
investors' perceptions regarding a BDC or its underlying
investments change.
Investing in real estate investment trusts ("REITs") involves
certain unique risks in addition to investing in the real estate
industry in general. REITs are subject to interest rate risk and
the risk of default by lessees or borrowers.
The Fund may invest in a variety of other mortgage-related
securities. Rising interest rates tend to extend the duration of
mortgage-related securities, making them more sensitive to changes
in interest rates, and may reduce the market value of the
securities. In addition, mortgage-related securities are subject to
the risk that borrowers may pay off their mortgages sooner than
expected, particularly when interest rates decline. This can reduce
the Fund's returns. The Fund's investments in other asset-backed
securities are subject to risks similar to those associated with
mortgage-backed securities, as well as additional risks associated
with the nature of the assets and the servicing of those
assets.
Because the Fund is concentrated in the financials sector, it
will be more susceptible to adverse economic or regulatory
occurrences affecting this sector, such as changes in interest
rates, availability and cost of capital funds, and competition.
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 report 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
https://www.ftportfolios.com or by calling 1-800-988-5891.
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