First Trust Intermediate Duration Preferred & Income Fund
(the "Fund") (NYSE: FPF) has declared the Fund’s regularly
scheduled monthly common share distribution in the amount of
$0.1275 per share payable on March 15, 2021, to shareholders of
record as of March 2, 2021. The ex-dividend date is expected to be
March 1, 2021. The monthly distribution information for the Fund
appears below.
First Trust
Intermediate Duration Preferred & Income Fund (FPF):
Distribution per share:
$0.1275
Distribution Rate based on the February
19, 2021 NAV of $24.41:
6.27%
Distribution Rate based on the February
19, 2021 closing market price of $24.08:
6.35%
The majority, and possibly all, of this distribution will be
paid out of net investment income earned by the Fund. A portion of
this distribution may come from net short-term realized capital
gains or return of capital. The final determination of the source
and tax status of all 2021 distributions will be made after the end
of 2021 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. The
Fund has a secondary objective of capital appreciation. The Fund
will seek to achieve its investment objectives by investing in
preferred and other income-producing securities. Under normal
market conditions, the Fund will invest at least 80% of its Managed
Assets in a portfolio of preferred and other income-producing
securities issued by U.S. and non-U.S. companies, including
traditional preferred securities, hybrid preferred securities that
have investment and economic characteristics of both preferred
securities and debt securities, floating rate and fixed-to-floating
rate preferred securities, debt securities, convertible securities
and contingent convertible securities.
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 $174 billion as of
January 31, 2021 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.
Stonebridge Advisors LLC ("Stonebridge"), the Fund's investment
sub-advisor, is a registered investment advisor specializing in
preferred and hybrid securities. Stonebridge was formed in December
2004 by First Trust Portfolios L.P. and Stonebridge Asset
Management, LLC. The company had assets under management or
supervision of approximately $12.4 billion as of December 31, 2020.
These assets come from separate managed accounts, unified managed
accounts, unit investment trusts, an open-end mutual fund, actively
managed exchange-traded funds, and the Fund.
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.
Preferred/hybrid and debt securities in which the Fund invests
are subject to various risks, including credit risk, interest rate
risk, call risk, deferral and omission risk, limited voting rights
risks, special redemption rights risk, issuer risk, floating rate
and fixed-to-floating rate risk, prepayment risk, reinvestment
risk, subordination risk and liquidity risk. 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. Credit risk may be
heightened for the Fund because it invests in below investment
grade securities, which involve greater risks than investment grade
securities, including the possibility of dividend or interest
deferral, default or bankruptcy. Interest rate risk is the risk
that the value of fixed-rate securities in the Fund will decline
because of rising market interest rates. Call risk is the risk that
performance could be adversely impacted if an issuer calls
higher-yielding debt instruments held by the Fund.
The risks associated with trust preferred securities typically
include the financial condition of the financial institution that
creates the trust, as the trust typically has no business
operations other than holding the subordinated debt issued by the
financial institution and issuing the trust preferred securities
and common stock backed by the subordinated debt.
Interest rate risk is the risk that securities will decline in
value because of changes in market interest rates. The duration of
a security will be expected to change over time with changes in
market factors and time to maturity. Although the Fund seeks to
maintain a duration, under normal market circumstances, excluding
the effects of leverage, of between three and eight years, if the
effect of the Fund's use of leverage was included in calculating
duration, it could result in a longer duration for the Fund.
If short-term interest rates are lower than the Fund’s fixed
rate of payment on an interest rate swap, the swap will reduce
common share net earnings. In addition, a default by the
counterparty to a swap transaction could also negatively impact the
performance of the common shares.
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, loan concentration and competition.
Investing in securities of non-U.S. issuers, which are generally
denominated in non-U.S. currencies, may involve certain risks not
typically associated with investing in securities of U.S. issuers,
including but not limited to economic risks, political risks, and
currency risks.
Investing in emerging market countries, as compared to foreign
developed markets, involves substantial additional risk due to more
limited information about the issuer and/or the security (including
limited financial and accounting information); higher brokerage
costs; different accounting, auditing and financial reporting
standards; less developed legal systems and thinner trading
markets; the possibility of currency blockages or transfer
restrictions; an emerging market country’s dependence on revenue
from particular commodities or international aid; and the risk of
expropriation, nationalization or other adverse political or
economic developments.
The United Kingdom’s Financial Conduct Authority, which
regulates LIBOR, intends to cease making LIBOR available for use as
a reference rate over a phase-out period that is currently expected
to begin after the end of 2021, although the specific timing of the
phase out of LIBOR continues to be discussed and negotiated across
the industry and in various jurisdictions. The unavailability or
replacement of LIBOR may affect the value, liquidity or return on
certain Fund investments and may result in costs incurred in
connection with closing out positions and entering into new trades.
Any potential effects of the transition away from LIBOR on the fund
or on certain instruments in which the fund invests can be
difficult to ascertain, and they may vary depending on a variety of
factors. Any such effects of the transition away from LIBOR, as
well as other unforeseen effects, could result in losses to the
fund. Manipulation of the LIBOR rate-setting process would raise
the risk of adverse impacts to a fund if a fund received a payment
based upon LIBOR and such manipulation of LIBOR resulted in lower
resets than would have occurred had there been no manipulation.
Contingent Capital Securities provide for mandatory conversion
into common stock of the issuer under certain circumstances, which
may limit the potential for income and capital appreciation and,
under certain circumstances, may result in complete loss of the
value of the investment.
Reverse repurchase agreements involve leverage risk, the risk
that the purchaser fails to return the securities as agreed upon,
files for bankruptcy or becomes insolvent. The Fund may be
restricted from taking normal portfolio actions during such time,
could be subject to loss to the extent that the proceeds of the
agreement are less than the value of securities subject to the
agreement and may experience adverse tax consequences.
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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version on businesswire.com: https://www.businesswire.com/news/home/20210222005914/en/
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