First Trust Mortgage Income Fund Announces Monthly Common Stock Distribution of $0.06 Per Share for June


WHEATON, Ill.–()–First Trust Mortgage Income Fund (the “Fund”) (NYSE: FMY) has declared the regular monthly distribution of common stock of the Fund in the amount of $0.06 per share payable on June 15, 2021 to shareholders who have since June 2, 2021. The ex-dividend date is expected to be June 1, 2021. Monthly distribution information for the Fund is shown below.

First Trust Mortgage Income Fund (FMY):

Breakdown per share:


Distribution rate based on May 19, 2021 NAV of $14.16:


Distribution rate based on the May 19, 2021 closing price of $13.53:


Part of this distribution may come from net investment income, short term net realized capital gains or capital returns. The final determination of the withholding and tax status of all benefits paid in 2021 will occur after the end of 2021 and will be provided on Form 1099-DIV.

The Fund is a diversified, closed-end management company that aims to provide a high level of current income. As a secondary objective, the Fund aims to preserve capital. The Fund pursues these investment objectives by investing primarily in mortgage-backed securities representing a portion of ownership in a pool of retail or commercial mortgage loans that, in the opinion of the Fund’s portfolio managers, provide an attractive combination of credit quality, performance and provide duration.

First Trust Advisors LP (“FTA”) is a federally registered investment advisor and acts as an investment advisor to the Fund. FTA and its subsidiary First Trust Portfolios LP (“FTP”), a FINRA registered broker-dealer, are privately held companies that offer a variety of investment services. As of April 30, 2021, FTA has collective assets under management or supervision of approximately $194 billion through mutual funds, exchange-traded funds, closed-end funds, mutual funds and segregated managed accounts. FTA is the regulator of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange traded funds for fund creation. FTA and FTP are based in Wheaton, Illinois.

Past performance is no guarantee of future performance. The investment return and market value of an investment in the Fund will fluctuate. Shares may be worth more or less than their original cost when sold. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be suitable for all investors.

Key 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 observed trends in securities prices. Shares of a fund may fall in value or underperform other investments due to the risk of loss associated with these market movements. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health problems, recessions or other events can have a material adverse effect on a fund and its investments. Such events may have a greater impact on certain geographic regions, countries, sectors and industries than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has led to significant volatility and declines in global financial markets, causing losses for investors. The COVID-19 pandemic could last for an extended period of time and will continue to affect 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 directly related to the issuer. Reinvestment risk is the risk that the Fund’s portfolio income will decline if the Fund invests the proceeds of matured, traded or called bonds at market interest rates below the current rate of return of the Fund’s portfolio. Prepayment risk is the risk that a prepayment will reduce the actual outstanding debt on which the Fund receives interest income. Credit risk is the risk that an issuer of a security is unable or unwilling to pay dividends, interest and/or principal at maturity and that the value of a security may fall as a result. Interest rate risk is the risk that fixed-income securities fall in value as a result of changes in market interest rates. Liquidity risk is the risk that illiquid and limited securities will be difficult to value and sell at a reasonable price when the Fund deems it desirable.

A mortgage-backed security may be adversely affected by the quality of the mortgages underlying the security and the structure of the issuer. For example, if a mortgage underlying a particular mortgage-backed security defaults, the value of that security could decline. In addition, a downturn in residential or commercial real estate markets or a general economic downturn could adversely affect both the price and liquidity of OTC mortgage-backed securities. A portion of the Fund’s assets under management may be invested in subordinated classes of mortgage-backed securities. Such subordinated classes are subject to a greater degree of default risk than senior classes of the same issuer or agency.

To the extent a fund invests in floating or floating rate bonds that use the London Interbank Offered Rate (“LIBOR”) as a reference rate, it is subject to LIBOR risk. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, will stop making LIBOR available as a reference rate during a phase-out period commencing immediately after December 31, 2021. The unavailability or substitution of LIBOR may affect the value, liquidity or return on certain plan assets and may incur costs associated with closing positions and entering into new trades. Potential effects of the transition of LIBOR on the Fund or on certain instruments in which the Fund invests may be difficult to identify and may vary depending on several factors and could result in losses to the Fund.

Investments in asset-backed or mortgage-backed securities offered by non-governmental issuers, such as commercial banks, savings and loans, private mortgage insurance companies, mortgage banks and other secondary market issuers, are subject to additional risks.

The main risks associated with the use of futures contracts are (a) the imperfect correlation between the change in market value of the instruments or indices underlying the futures contracts and the price of the futures contracts; (b) possible lack of a liquid secondary market for a forward contract and the resulting inability to enter into a forward contract if desired; (c) losses caused by unexpected market movements, which are potentially unlimited; (d) the inability of the Investment Adviser to correctly predict the direction of security prices, interest rates, exchange rates and other economic factors; and (e) the possibility of the counterparty defaulting on its obligations.

If a security that has been sold short rises in price, the Fund may need to hedge its short position at a price higher than the short sale price, resulting in a loss.

Repurchase agreements are subject to the risk of failure. If the counterparty of the Fund defaults on its obligations and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may incur a loss.

The use of leverage may result in additional risks and costs, and may magnify the effect of any losses.

The risks of investing in the Fund are set out in shareholder reports and other regulatory documents.

The information presented is not intended as an investment recommendation or advice to any specific person. By providing this information, First Trust makes no commitment to provide advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently evaluating investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.

The Fund’s daily closing price on the New York Stock Exchange and net asset value per share, as well as other information, can be found at: or by calling 1-800-988-5891.

This div height required for enabling the sticky sidebar