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
$0.1375 per share payable on June 17, 2024, to shareholders of
record as of June 3, 2024. The ex-dividend date is expected to be
June 3, 2024. The monthly distribution information for the Fund
appears below.
First Trust
Intermediate Duration Preferred & Income Fund (FPF):
Distribution per share:
$0.1375
Distribution Rate based on the May 17,
2024 NAV of $19.05:
8.66%
Distribution Rate based on the May 17,
2024 closing market price of $17.92:
9.21%
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 2024 distributions will be made after the end
of 2024 and will be provided on Form 1099-DIV.
The Fund has a practice of seeking to maintain a relatively
stable monthly distribution which may be changed periodically.
First Trust Advisors L.P. ("FTA") believes the practice may benefit
the Fund's market price and premium/discount to the Fund's NAV. The
practice has no impact on the Fund's investment strategy and may
reduce the Fund's NAV.
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
seeks 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.
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 $218 billion as of April 30, 2024 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 $11.8 billion as of April 30, 2024.
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.
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.
Market risk is the risk that a particular investment, or shares
of a fund in general may fall in value. Investments held by the
Fund are subject to market fluctuations caused by real or perceived
adverse economic conditions, political events, regulatory factors
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. In addition,
local, regional or global events such as war, acts of terrorism,
market manipulation, government defaults, government shutdowns,
regulatory actions, political changes, diplomatic developments, the
imposition of sanctions and other similar measures, spread of
infectious disease or other public health issues, recessions,
natural disasters or other events could have significant negative
impact on a fund and its investments.
Current market conditions risk is the risk that a particular
investment, or shares of the fund in general, may fall in value due
to current market conditions. As a means to fight inflation, the
Federal Reserve and certain foreign central banks have raised
interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously
implemented quantitative easing. 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. Ongoing armed conflicts
between Russia and Ukraine in Europe and among Israel, Hamas and
other militant groups in the Middle East, have caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the
United States. The hostilities and sanctions resulting from those
hostilities have and could continue to have a significant impact on
certain fund investments as well as fund performance and liquidity.
The COVID-19 global pandemic, or any future public health crisis,
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, negatively impacting
global growth prospects.
Preferred/hybrid and debt securities in which the Fund invests
are subject to various risks, including credit risk, interest rate
risk, and call 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. These securities are also subject to
issuer risk, floating rate and fixed-to-floating rate risk,
prepayment risk, reinvestment risk, subordination risk and
liquidity risk.
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.
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.
Investment in non-U.S. securities is subject to the risk of
currency fluctuations and to economic and political risks
associated with such foreign countries.
Investments in securities of issuers located in emerging market
countries are considered speculative and there is a heightened risk
of investing in emerging markets securities. Financial and other
reporting by companies and government entities also may be less
reliable in emerging market countries. Shareholder claims that are
available in the U.S., as well as regulatory oversight and
authority that is common in the U.S., including for claims based on
fraud, may be difficult or impossible for shareholders of
securities in emerging market countries or for U.S. authorities to
pursue.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. LIBOR has
ceased to be made available as a reference rate and there is no
assurance that any alternative reference rate, including the
Secured Overnight Financing Rate ("SOFR"), will be similar to or
produce the same value or economic equivalence as LIBOR. 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 a fund or on certain instruments in which a fund
invests is difficult to predict and could result in losses to the
fund.
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
https://www.ftportfolios.com or by calling 1-800-988-5891.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240520780533/en/
Press Inquiries Ryan Issakainen 630-765-8689 Analyst Inquiries
Jeff Margolin 630-915-6784 Broker Inquiries Sales Team
866-848-9727
First Trust Intermediate... (NYSE:FPF)
Historical Stock Chart
From Oct 2024 to Nov 2024
First Trust Intermediate... (NYSE:FPF)
Historical Stock Chart
From Nov 2023 to Nov 2024
