UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-22795
First Trust Intermediate Duration Preferred & Income Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
Date of fiscal year end: October 31
Date of reporting period: July 31, 2013
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS
JULY 31, 2013 (UNAUDITED)
STATED
SHARES DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
$20 PAR PREFERRED SECURITIES - 0.4%
REAL ESTATE INVESTMENT TRUSTS - 0.4%
312,157 CommonWealth REIT ................................... 7.50% 11/15/19 $ 6,520,960
--------------
TOTAL $20 PAR PREFERRED SECURITIES................................................. 6,520,960
--------------
(Cost $6,565,806)
$25 PAR PREFERRED SECURITIES - 19.0%
CAPITAL MARKETS - 1.9%
21,808 Affiliated Managers Group, Inc. ..................... 6.38% 08/15/42 544,110
100,000 Apollo Investment Corp. ............................. 6.88% 07/15/43 2,339,000
189,424 Ares Capital Corp. .................................. 7.00% 02/15/22 4,866,302
44,567 Ares Capital Corp. .................................. 7.75% 10/15/40 1,148,492
334,403 Goldman Sachs Group, Inc. ........................... 6.13% 11/01/60 8,447,020
85,000 Morgan Stanley Capital Trust VI ..................... 6.60% 02/01/46 2,130,950
100,000 Morgan Stanley Capital Trust VII .................... 6.60% 10/15/66 2,516,000
178,669 Raymond James Financial, Inc. ....................... 6.90% 03/15/42 4,615,020
--------------
26,606,894
--------------
COMMERCIAL BANKS - 4.4%
323,084 HSBC Holdings PLC, Series 2 ......................... 8.00% (a) 8,797,577
100,000 PNC Financial Services Group, Inc., Series P (b)..... 6.13% (a) 2,625,000
246,368 Regions Financial Corp., Series A ................... 6.38% (a) 6,068,044
323,170 Santander Finance Preferred SAU, Series 10 .......... 10.50% (a) 8,612,481
190,000 SunTrust Banks, Inc., Series E ...................... 5.88% (a) 4,491,600
200,000 Taylor Capital Group Inc. ........................... 8.00% (a) 5,124,000
165,000 Texas Capital Bancshares Inc. ....................... 6.50% (a) 4,057,350
44,618 Webster Financial Corp., Series E ................... 6.40% (a) 1,106,526
373,036 Wells Fargo & Co. (b)................................ 5.85% (a) 9,203,731
175,000 Wells Fargo & Co., Series J ......................... 8.00% (a) 4,968,250
66,300 Zions Bancorporation (b)............................. 6.30% (a) 1,673,412
195,000 Zions Bancorporation, Series C ...................... 9.50% (a) 4,980,300
--------------
61,708,271
--------------
CONSUMER FINANCE - 0.5%
279,601 Discover Financial Services, Series B ............... 6.50% (a) 6,987,229
--------------
DIVERSIFIED FINANCIAL SERVICES - 4.0%
817,473 Citigroup Capital XIII (b)........................... 7.88% 10/30/40 22,480,507
459,567 Countrywide Capital V ............................... 7.00% 11/01/36 11,539,727
196,292 ING Groep N.V. ...................................... 6.20% (a) 4,667,824
279,112 ING Groep N.V. ...................................... 6.38% (a) 6,718,226
77,290 ING Groep N.V. ...................................... 7.38% (a) 1,946,935
2,856 KKR Financial Holdings LLC .......................... 8.38% 11/15/41 78,369
216,813 KKR Financial Holdings LLC, Series A ................ 7.38% (a) 5,485,369
172,752 RBS Capital Funding Trust VII, Series G ............. 6.08% (a) 3,427,400
--------------
56,344,357
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.1%
83,750 Qwest Corp. ......................................... 7.38% 06/01/51 2,123,063
|
See Notes to Quarterly Portfolio of Investments Page 1
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
STATED
SHARES DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
$25 PAR PREFERRED SECURITIES (CONTINUED)
DIVERSIFIED TELECOMMUNICATION SERVICES (CONTINUED)
148,899 Qwest Corp. ......................................... 7.50% 09/15/51 $ 3,817,770
120,211 Qwest Corp. ......................................... 7.00% 04/01/52 3,025,711
315,508 Qwest Corp. ......................................... 6.13% 06/01/53 7,111,550
--------------
16,078,094
--------------
ELECTRIC UTILITIES - 0.7%
189,962 Entergy Arkansas Inc. ............................... 4.75% 06/01/63 3,968,306
3,287 Entergy Mississippi, Inc. ........................... 6.00% 05/01/51 81,583
59,454 Entergy Texas, Inc. ................................. 7.88% 06/01/39 1,589,800
15,392 NextEra Energy Capital Holdings, Inc., Series F ..... 8.75% 03/01/69 406,041
31,781 NextEra Energy Capital Holdings, Inc., Series G ..... 5.70% 03/01/72 745,582
32,023 NextEra Energy Capital Holdings, Inc., Series H ..... 5.63% 06/15/72 742,613
101,653 PPL Capital Funding, Inc., Series B ................. 5.90% 04/30/73 2,337,003
--------------
9,870,928
--------------
INSURANCE - 3.4%
67,806 Arch Capital Group Ltd., Series C ................... 6.75% (a) 1,720,238
200,000 Aspen Insurance Holdings Ltd. (b).................... 5.95% (a) 5,140,000
94,500 Aspen Insurance Holdings Ltd. (b).................... 7.40% (a) 2,518,425
41,834 Aviva PLC ........................................... 8.25% 12/01/41 1,153,363
150,515 Axis Capital Holdings Ltd., Series C ................ 6.88% (a) 3,910,380
1,074 Endurance Specialty Holdings Ltd., Series A ......... 7.75% (a) 28,407
264,683 Endurance Specialty Holdings Ltd., Series B ......... 7.50% (a) 6,992,925
346,987 Hartford Financial Services Group, Inc. (b).......... 7.88% 04/15/42 10,204,888
222,240 MetLife, Inc., Series B ............................. 6.50% (a) 5,598,226
175,000 Montpelier Re Holdings Ltd. ......................... 8.88% (a) 4,632,250
85,000 PartnerRe Ltd., Series E ............................ 7.25% (a) 2,255,050
175,927 Reinsurance Group of America, Inc. (b)............... 6.20% 09/15/42 4,494,935
7,000 WR Berkley Corp. .................................... 5.63% 04/30/53 148,960
--------------
48,798,047
--------------
MULTI-UTILITIES - 0.0%
2,266 DTE Energy Co. ...................................... 6.50% 12/01/61 58,440
--------------
REAL ESTATE INVESTMENT TRUSTS - 2.8%
245,007 CommonWealth REIT ................................... 5.75% 08/01/42 5,301,951
178,774 CommonWealth REIT, Series E ......................... 7.25% (a) 4,424,657
90,000 Digital Realty Trust, Inc., Series E ................ 7.00% (a) 2,250,000
110,285 DuPont Fabros Technology Inc. ....................... 7.88% (a) 2,839,839
62,848 EPR Properties, Series F ............................ 6.63% (a) 1,508,352
3,370 Health Care REIT, Inc., Series J .................... 6.50% (a) 85,261
61,206 Hospitality Properties Trust, Series D .............. 7.13% (a) 1,561,977
30,980 Kilroy Realty Corp. ................................. 6.38% (a) 739,183
150,541 Kilroy Realty Corp. ................................. 6.88% (a) 3,686,749
|
Page 2 See Notes to Quarterly Portfolio of Investments
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
STATED
SHARES DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
$25 PAR PREFERRED SECURITIES (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
22,444 Kimco Realty Corp., Series H ........................ 6.90% (a) $ 568,731
203,508 National Retail Properties, Inc., Series D .......... 6.63% (a) 5,089,735
1,007 PS Business Parks Inc. .............................. 6.88% (a) 25,316
34,535 PS Business Parks, Inc., Series S ................... 6.45% (a) 849,216
67,037 PS Business Parks, Inc., Series T ................... 6.00% (a) 1,553,247
11,480 Public Storage ...................................... 6.50% (a) 290,444
29,394 Public Storage, Series R ............................ 6.35% (a) 741,023
33,338 Regency Centers Corp., Series 6 ..................... 6.63% (a) 833,783
99,794 Taubman Centers, Inc., Series J ..................... 6.50% (a) 2,457,926
70,879 Taubman Centers, Inc., Series K ..................... 6.25% (a) 1,679,832
33,609 Vornado Realty Trust, Series I ...................... 6.63% (a) 849,636
88,499 Vornado Realty Trust, Series J ...................... 6.88% (a) 2,272,654
--------------
39,609,512
--------------
WIRELESS TELECOMMUNICATION SERVICES - 0.2%
29,358 Telephone & Data Systems Inc. ....................... 6.63% 03/31/45 735,418
57,253 Telephone & Data Systems, Inc. ...................... 6.88% 11/15/59 1,465,104
1,989 Telephone & Data Systems, Inc. ...................... 7.00% 03/15/60 51,336
32,455 US Cellular Corp. ................................... 6.95% 05/15/60 827,603
--------------
3,079,461
--------------
TOTAL $25 PAR PREFERRED SECURITIES................................................. 269,141,233
(Cost $275,699,613) --------------
$50 PAR PREFERRED SECURITIES - 0.2%
CONSUMER FINANCE - 0.2%
54,367 SLM Corp. ........................................... 6.97% (a) 2,650,391
--------------
TOTAL $50 PAR PREFERRED SECURITIES................................................. 2,650,391
--------------
(Cost $2,677,798)
$100 PAR PREFERRED SECURITIES - 2.3%
COMMERCIAL BANKS - 1.6%
50,000 CoBank ACB .......................................... 6.13% (a) 4,990,625
175,000 CoBank ACB (b) (c)................................... 6.25% (a) 18,063,290
--------------
23,053,915
--------------
DIVERSIFIED FINANCIAL SERVICES - 0.7%
100,000 Farm Credit Bank of Texas (b) (c).................... 6.75% (a) 10,025,000
------------
TOTAL $100 PAR PREFERRED SECURITIES................................................ 33,078,915
(Cost $33,913,750) --------------
$1,000 PAR PREFERRED SECURITIES - 4.6%
COMMERCIAL BANKS - 1.4%
9,310 Santander Finance Preferred SAU, Series 11 (b)....... 10.50% (a) 9,909,331
|
See Notes to Quarterly Portfolio of Investments Page 3
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
STATED
SHARES DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
$1,000 PAR PREFERRED SECURITIES (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
10,000 AgStar Financial Services ACA (b) (c)................ 6.75% (a) $ 9,961,875
--------------
19,871,206
--------------
DIVERSIFIED FINANCIAL SERVICES - 1.1%
15,000 Pitney Bowes International Holdings Inc. (c)......... 6.13% (a) 14,888,438
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.4%
16,000 Centaur Funding Corp. (c)............................ 9.08% 04/21/20 19,635,000
--------------
REAL ESTATE INVESTMENT TRUSTS - 0.7%
8,000 Sovereign Real Estate Investment Trust (c)........... 12.00% (a) 10,457,160
--------------
TOTAL $1,000 PAR PREFERRED SECURITIES.............................................. 64,851,804
(Cost $65,673,043) --------------
PAR STATED
AMOUNT DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
CAPITAL PREFERRED SECURITIES - 102.0%
CAPITAL MARKETS - 3.3%
$ 28,850,000 Deutsche Bank Capital Funding Trust VII (b) (c)...... 5.63% (a) 28,922,125
18,500,000 Goldman Sachs Capital I ............................. 6.35% 02/15/34 18,405,391
--------------
47,327,516
--------------
COMMERCIAL BANKS - 35.7%
18,600,000 Banco Bilbao Vizcaya Argentaria S.A. (b)............. 9.00% (a) 18,224,280
10,000,000 Barclays Bank PLC ................................... 7.63% 11/21/22 9,975,000
21,000,000 Barclays Bank PLC (b)................................ 7.75% 04/10/23 21,630,000
6,000,000 Barclays Bank PLC (b) (c)............................ 7.43% (a) 6,501,000
16,750,000 BBVA International Preferred SAU (b)................. 5.92% (a) 15,326,250
17,000,000 BNP Paribas S.A. (b) (c)............................. 7.20% (a) 17,178,500
7,500,000 BPCE S.A. (b) (c).................................... 12.50% (a) 9,346,875
3,000,000 BPCE S.A. ........................................... 13.00% (a) 3,409,500
20,000,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA (b)........................................... 8.40% (a) 21,911,600
21,604,000 Cooperatieve Centrale Raiffeisen-Boerenleenbank
BA (b) (c)....................................... 11.00% (a) 28,045,362
6,000,000 Credit Agricole S.A. (b) (c)......................... 8.38% (a) 6,480,000
5,000,000 Danske Bank A/S ..................................... 7.13% 09/21/37 5,093,750
8,700,000 Fifth Third Capital Trust IV (b)..................... 6.50% 04/15/37 8,700,000
6,725,000 HSBC Capital Funding LP (b) (c)...................... 10.18% (a) 9,700,812
26,000,000 KBC Bank NV (b)...................................... 8.00% 01/25/23 26,611,000
9,000,000 LBG Capital No.1 PLC (b) (c)......................... 8.00% (a) 9,178,677
22,755,000 Lloyds Banking Group PLC (b) (c)..................... 5.92% (a) 18,886,650
23,500,000 Lloyds Banking Group PLC (b) (c)..................... 6.27% (a) 19,857,500
13,500,000 Lloyds TSB Bank PLC (b) (c).......................... 12.00% (a) 18,258,750
|
Page 4 See Notes to Quarterly Portfolio of Investments
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
PAR STATED
AMOUNT DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
CAPITAL PREFERRED SECURITIES (CONTINUED)
COMMERCIAL BANKS (CONTINUED)
$ 23,020,000 M&T Bank Corp. (c)................................... 6.88% (a) $ 23,973,673
10,000,000 Macquarie PMI LLC ................................... 8.38% (a) 10,450,000
9,964,000 Mizuho Capital Investment, Ltd. (b) (c).............. 14.95% (a) 11,109,860
10,754,000 Natixis (b).......................................... 10.00% (a) 12,259,560
2,000,000 Natixis (b).......................................... 10.00% (a) 2,280,000
4,200,000 NIBC Bank N.V. ...................................... 7.63% (a) 3,633,000
24,600,000 Royal Bank of Scotland Group PLC, Series U (b)....... 7.64% (a) 22,447,500
7,750,000 SMFG Preferred Capital USD 3 Ltd. (b) (c)............ 9.50% (a) 9,514,675
37,600,000 Societe Generale S.A. (b)............................ 6.63% (a) 38,164,000
15,184,000 Standard Chartered Bank (b).......................... 9.50% (a) 16,588,520
4,500,000 Standard Chartered PLC (b) (c)....................... 6.41% (a) 4,589,438
8,500,000 UBS AG (b)........................................... 7.25% 02/22/22 9,152,562
46,000,000 Wells Fargo & Co., Series K (b)...................... 7.98% (a) 51,865,000
10,000,000 Westpac Capital Trust III (b)........................ 5.82% (a) 10,085,000
6,800,000 Zions Bancorporation (b)............................. 5.80% (a) 6,358,000
--------------
506,786,294
--------------
DIVERSIFIED FINANCIAL SERVICES - 20.2%
1,000,000 Ageas Hybrid Financing S.A. ......................... 8.25% (a) 1,005,714
25,500,000 Bank of America Corp. (b)............................ 8.00% (a) 28,371,682
20,000,000 Bank of America Corp. (b)............................ 8.13% (a) 22,300,280
800,000 Citigroup Inc. (b)................................... 8.40% (a) 882,867
28,000,000 Citigroup, Inc. (b).................................. 5.95% (a) 27,160,000
10,000,000 Credit Suisse Group Guernsey I Ltd. (b).............. 7.88% 02/24/41 10,650,000
47,500,000 General Electric Capital Corp., Series A (b)......... 7.13% (a) 53,526,895
20,520,000 Glen Meadow Pass Through Trust (b) (c)............... 6.51% 02/12/67 19,596,600
9,000,000 ING Groep N.V. (b)................................... 5.78% (a) 9,000,000
14,530,000 ING US, Inc. (b) (c)................................. 5.65% 05/15/53 13,694,525
40,009,000 JPMorgan Chase & Co., Series 1 (b)................... 7.90% (a) 44,554,342
25,000,000 JPMorgan Chase & Co., Series R (b)................... 6.00% (a) 24,656,250
7,500,000 Svensk Exportkredit AB (c)........................... 6.38% (a) 7,462,473
10,000,000 UBS AG .............................................. 7.63% 08/17/22 11,143,660
11,585,000 ZFS Finance USA Trust II (b) (c)..................... 6.45% 12/15/65 12,424,913
--------------
286,430,201
--------------
ELECTRIC UTILITIES - 2.8%
14,975,000 NextEra Energy Capital Holdings Inc. (b)............. 7.30% 09/01/67 16,674,483
17,500,000 PPL Capital Funding Inc. (b)......................... 6.70% 03/30/67 18,214,665
4,179,000 Southern California Edison Co., Series E (b)......... 6.25% (a) 4,471,530
--------------
39,360,678
--------------
ENERGY EQUIPMENT & SERVICES - 0.5%
7,000,000 DCP Midstream LLC (b) (c)............................ 5.85% 05/21/43 6,720,000
--------------
INSURANCE - 35.3%
23,000,000 American International Group, Inc. (b)............... 8.18% 05/15/58 28,232,500
|
See Notes to Quarterly Portfolio of Investments Page 5
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
PAR STATED
AMOUNT DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
CAPITAL PREFERRED SECURITIES (CONTINUED)
INSURANCE (CONTINUED)
$ 25,500,000 Aquarius + Investments PLC for Swiss Reinsurance Co.
Ltd. (b)......................................... 8.25% (a) $ 27,476,250
5,000,000 Assured Guaranty Municipal Holdings, Inc. (b) (c).... 6.40% 12/15/66 4,450,000
31,337,000 Aviva PLC ........................................... 8.25% (a) 33,641,836
6,800,000 AXA S.A. ............................................ 8.60% 12/15/30 8,253,004
15,000,000 AXA S.A. (b) (c)..................................... 6.38% (a) 15,000,000
25,055,000 AXA S.A. (b) (c)..................................... 6.46% (a) 25,117,638
1,050,000 Catlin Insurance Co Ltd. (b) (c)..................... 7.25% (a) 1,102,500
8,500,000 CHUBB Corp. (b)...................................... 6.38% 03/29/67 9,243,750
5,500,000 Cloverie PLC for Zurich Insurance Co. Ltd. (b)....... 8.25% (a) 6,331,892
12,500,000 Dai-ichi Life Insurance Co Ltd. (The) (b) (c)........ 7.25% (a) 13,896,275
22,200,000 Genworth Holdings Inc. (b)........................... 6.15% 11/15/66 19,674,750
23,782,000 Hartford Financial Services Group Inc. (b)........... 8.13% 06/15/38 27,230,390
8,100,000 Liberty Mutual Group, Inc. (b) (c)................... 7.00% 03/15/37 8,403,750
23,000,000 Lincoln National Corp. (b)........................... 7.00% 05/17/66 23,805,000
18,000,000 Lincoln National Corp. (b)........................... 6.05% 04/20/67 18,090,000
10,000,000 MetLife Capital Trust IV (c)......................... 7.88% 12/15/37 11,850,000
3,500,000 MetLife Capital Trust X (c).......................... 9.25% 04/08/38 4,672,500
16,265,000 MetLife Inc. ........................................ 10.75% 08/01/39 24,804,125
25,000,000 MetLife, Inc. ....................................... 6.40% 12/15/36 26,000,000
3,000,000 Nationwide Financial Services Capital Trust ......... 7.90% 03/01/37 3,305,280
13,000,000 Nationwide Financial Services Inc. .................. 6.75% 05/15/37 13,325,000
5,000,000 Provident Financing Trust I ......................... 7.41% 03/15/38 5,551,855
23,265,000 Prudential Financial Inc. (b)........................ 8.88% 06/15/38 28,150,650
19,389,000 Prudential PLC (b)................................... 11.75% (a) 21,837,908
36,520,000 QBE Capital Funding III Ltd. (b) (c)................. 7.25% 05/24/41 39,259,000
5,500,000 StanCorp Financial Group Inc. (b).................... 6.90% 06/01/67 5,561,875
8,000,000 Swiss Re Capital I LP (b) (c)........................ 6.85% (a) 8,420,000
39,311,000 XL Group PLC, Series E (b)........................... 6.50% (a) 38,819,612
--------------
501,507,340
--------------
METALS & MINING - 1.1%
14,872,000 ArcelorMittal (b).................................... 8.75% (a) 16,139,838
--------------
MULTI-UTILITIES - 1.1%
9,000,000 Dominion Resources Inc. (b).......................... 7.50% 06/30/66 9,861,462
5,000,000 RWE AG .............................................. 7.00% 10/12/72 5,422,500
--------------
15,283,962
--------------
OIL, GAS & CONSUMABLE FUELS - 2.0%
5,000,000 BG Energy Capital PLC (b)............................ 6.50% 11/30/72 5,375,500
16,000,000 Enbridge Energy Partners LP (b)...................... 8.05% 10/01/37 18,170,960
|
Page 6 See Notes to Quarterly Portfolio of Investments
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
PAR STATED
AMOUNT DESCRIPTION RATE STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
CAPITAL PREFERRED SECURITIES (CONTINUED)
OIL, GAS & CONSUMABLE FUELS (CONTINUED)
$ 4,000,000 Enterprise Products Operating LLC (b)................ 7.03% 01/15/68 $ 4,494,328
--------------
28,040,788
--------------
TOTAL CAPITAL PREFERRED SECURITIES................................................. 1,447,596,617
(Cost $1,479,950,775) --------------
PRINCIPAL STATED
VALUE DESCRIPTION COUPON STATED MATURITY VALUE
---------------- ----------------------------------------------------- ----------- --------------- --------------
CORPORATE BONDS AND NOTES - 2.7%
CAPITAL MARKETS - 0.7%
10,000,000 Goldman Sachs Group Inc. (The) ...................... 6.75% 10/01/37 10,553,720
--------------
COMMERCIAL BANKS - 2.0%
9,940,000 Barclays Bank PLC (c)................................ 10.18% 06/12/21 12,793,724
2,560,000 Barclays Bank PLC ................................... 10.18% 06/12/21 3,294,963
1,010,000 BBVA Global Finance Ltd. ............................ 7.00% 12/01/25 1,012,518
10,000,000 Royal Bank of Scotland PLC (The) (b)................. 9.50% 03/16/22 11,091,500
--------------
28,192,705
--------------
TOTAL CORPORATE BONDS AND NOTES.................................................... 38,746,425
(Cost $39,479,735) --------------
TOTAL INVESTMENTS - 131.2%......................................................... 1,862,586,345
(Cost $1,903,960,520) (d)
OUTSTANDING LOAN - (35.2%)......................................................... (500,000,000)
NET OTHER ASSETS AND LIABILITIES - 4.0%............................................ 56,853,905
--------------
NET ASSETS - 100.0%................................................................ $1,419,440,250
==============
|
(a) Perpetual maturity.
(b) Fixed-to-floating or fixed-to-variable rate security. The interest rate
shown reflects the fixed rate in effect at July 31, 2013. At a
predetermined date, the fixed rate will change to a floating rate or a
variable rate.
(c) This security, sold within the terms of a private placement memorandum, is
exempt from registration upon resale under Rule 144A under the Securities
Act of 1933, as amended, and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. Pursuant to
procedures adopted by the Fund's Board of Trustees, this security has been
determined to be liquid by Stonebridge Advisors LLC, the Fund's
sub-advisor. Although market instability can result in periods of
increased overall market illiquidity, liquidity for each security is
determined based on security specific factors and assumptions, which
require subjective judgment. At July 31, 2013, securities noted as such
amounted to $521,698,116 or 36.75% of net assets.
(d) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of July 31, 2013, the
aggregate gross unrealized appreciation for all securities in which there
was an excess of value over tax cost was $3,376,717 and the aggregate
gross unrealized depreciation for all securities in which there was an
excess of tax cost over value was $44,750,892.
See Notes to Quarterly Portfolio of Investments Page 7
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JULY 31, 2013 (UNAUDITED)
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of July 31, 2013
is as follows (see Note 2A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
INVESTMENTS 7/31/2013 PRICES INPUTS INPUTS
------------------------------------------------ -------------- ------------ -------------- ------------
$20 Par Preferred Securities*................... $ 6,520,960 $ 6,520,960 $ -- $ --
$25 Par Preferred Securities*................... 269,141,233 269,141,233 -- --
$50 Par Preferred Securities*................... 2,650,391 2,650,391 -- --
$100 Par Preferred Securities*.................. 33,078,915 33,078,915 -- --
$1,000 Par Preferred Securities*................ 64,851,804 64,851,804 -- --
Capital Preferred Securities*................... 1,447,596,617 -- 1,447,596,617 --
Corporate Bonds and Notes*...................... 38,746,425 -- 38,746,425 --
-------------- ------------ -------------- ------------
TOTAL INVESTMENTS............................... $1,862,586,345 $376,243,303 $1,486,343,042 $ --
============== ============ ============== ============
|
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between Levels at July 31, 2013.
Page 8 See Notes to Quarterly Portfolio of Investments
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
JULY 31, 2013 (UNAUDITED)
1. ORGANIZATION
First Trust Intermediate Duration Preferred & Income Fund (the "Fund") is a
non-diversified, closed-end management investment company organized as a
Massachusetts business trust on February 4, 2013 and is registered with the
Securities and Exchange Commission ("SEC") under the Investment Company Act of
1940, as amended ( the "1940 Act"). The Fund trades under the ticker symbol FPF
on the New York Stock Exchange ("NYSE").
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The NAV per Common Share is
calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid and any borrowings of the Fund), by the total
number of Common Shares outstanding.
The Fund's investments are valued daily in accordance with valuation procedures
adopted by the Fund's Board of Trustees and in accordance with provisions of the
1940 Act. The Fund's securities will be valued as follows:
Preferred stocks and other equity securities listed on any national or
foreign exchange (excluding the NASDAQ(R) Stock Market LLC ("NASDAQ") and
the London Stock Exchange Alternative Investment Market ("AIM")), are
valued at the last sale price on the exchange on which they are
principally traded or, for NASDAQ and AIM securities, the official closing
price. Securities traded on more than one securities exchange are valued
at the last sale price or official closing price, as applicable, at the
close of the securities exchange representing the principal market for
such securities.
Bonds, notes and other debt securities are valued on the basis of
valuations provided by dealers who make markets in such securities or by
an independent pricing service approved by the Trust's Board of Trustees,
which may use the following valuation inputs when available:
1) benchmark yields;
2) reported trades;
3) broker/dealer quotes;
4) issuer spreads;
5) benchmark securities;
6) bids and offers; and
7) reference data including market research publications.
Securities traded in an over-the-counter market are valued at their
closing bid prices.
Debt securities having a remaining maturity of sixty days or less when
purchased are valued at cost adjusted for amortization of premiums and
accretion of discounts.
All market quotations used in valuing the Fund's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received are deemed
unreliable, the Trust's Board of Trustees has designated First Trust Advisors
L.P. ("First Trust") to use a fair value method to value the Fund's securities.
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect the Fund's NAV, First Trust will use a fair value method to
value the Fund's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Trust's Board of Trustees, and in accordance
with the provisions of the 1940 Act. As a general principle, the fair value of a
security is the amount which the Fund might reasonably expect to receive for the
security upon its current sale. In light of the judgment involved in fair
valuations, there can be no assurance that a fair value assigned to a particular
security will be the amount which the Fund might be able to receive upon its
current sale. Fair valuation of a security will be based on the consideration of
all available information, including, but not limited to, the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
Page 9
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST INTERMEDIATE DURATION PREFERRED & INCOME FUND (FPF)
JULY 31, 2013 (UNAUDITED)
5) price quotes from dealers and/or pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the securities in question are foreign securities, the following additional
information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) closed-end fund trading of similar securities;
4) foreign currency exchange activity;
5) the trading prices of financial products that are tied to baskets of
foreign securities;
6) factors relating to the event that precipitated the pricing problem;
7) whether the event is likely to recur; and
8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodology used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of July 31, 2013, is
included with the Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Page 10
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
of the filing date of the report that includes the disclosure required by
this paragraph, based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) First Trust Intermediate Duration Preferred & Income Fund
By (Signature and Title)* /s/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: September 18, 2013
----------------------
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: September 18, 2013
----------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: September 18, 2013
----------------------
|
* Print the name and title of each signing officer under his or her signature.
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