First Trust Mortgage Income Fund is announcing its monthly common stock distribution of $ 0.06 per share for May


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WHEATON, Ill. – () – First Trust Mortgage Income Fund (the “ Fund ”) (NYSE: FMY) has the regularly scheduled monthly distribution of common shares of the Fund in an amount of $ 0.06 per share payable on May 17, 2021 to shareholders who have have been declared known. May 4, 2021. The ex-dividend date is expected to be May 3, 2021. The monthly distribution information for the Fund is shown below.

First Trust Mortgage Income Fund (FMY):


Breakdown per share:

$ 0.06

Payout percentage based on the NAV of April 19, 2021 of $ 14.19:

5.07%

Distribution rate based on the April 19, 2021 closing price of $ 13.67:

5.27%

Part of this distribution may come from net investment income, net realized short-term capital gains or return on capital. The final determination of the withholding and tax status of all distributions paid in 2021 will take place 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 generate high current income. As a secondary objective, the Fund aims to conserve capital. The Fund pursues these investment objectives by investing primarily in mortgage-backed securities that represent partial ownership in a pool of residential or commercial mortgage loans that, in the opinion of the Fund’s portfolio managers, offer an attractive combination of credit quality, yield and maturity .

First Trust Advisors LP (“FTA”) is a federally registered investment advisor and acts as an investment advisor to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a FINRA registered broker-dealer, are private companies offering a variety of investment services. FTA has collective assets under management or supervision of approximately $ 186 billion as of March 31, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and individually managed accounts. FTA is the regulator of the First Trust unit’s investment funds, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation funds. FTA and FTP are located in Wheaton, Illinois.

Past performance is no guarantee of future results. The investment return and market value of an investment in the fund will fluctuate. When sold, shares can 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 suitable for all investors.

Main 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. A fund’s shares 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, terrorist attacks, spread of infectious diseases or other public health issues, recessions or other events, can have a significant negative effect on a fund and its investments. Such events can affect certain geographic regions, countries, sectors and industries more significantly than others. The December 2019 outbreak of COVID-19 respiratory disease has resulted in significant volatility and declines in global financial markets, leading to losses for investors. The COVID-19 pandemic can last for a longer 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 income from the Fund’s portfolio will decline if the Fund invests the proceeds of matured, traded or called bonds at market rates below the current rate of return of the Fund’s portfolio. Early redemption risk is the risk that early redemption will reduce the actual outstanding debt on which the Fund will receive interest income. Credit risk is the risk that an issuer of a security is unable or willing to make dividends, interest and / or principal payments when due and that the value of a security may decline as a result. Interest rate risk is the risk that fixed-income securities will decline in value as a result of changes in market interest rates. Liquidity risk is the risk that illiquid and restricted securities will be difficult to value and sell at a fair price when the Fund considers it desirable.

A mortgage-backed security may be adversely affected by the quality of the mortgages underlying such security and the structure of its issuer. For example, if a mortgage underlying a particular mortgage-backed security defaults, the value of that security may 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 privately issued mortgage-backed securities. Some of the Fund’s assets under management may be invested in subordinated categories of mortgage-backed securities. Such subordinated classes are subject to greater default risk than senior classes of the same issuer or agency.

To the extent a fund invests in variable or floating rate liabilities using 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 beginning immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect value, liquidity or returns. on certain plan assets and may result in costs incurred in closing positions and entering into new transactions. Any effects of the transfer of LIBOR on the fund or on certain instruments in which the fund invests may be difficult to determine and vary depending on various factors and could result in losses for the fund.

Investments in asset- or mortgage-backed securities offered by non-governmental issuers, such as commercial banks, savings and loans, private mortgage insurers, mortgage bankers 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 futures contract and the resulting inability to enter into a futures contract when desired; (c) losses caused by unexpected market movements, which are potentially unlimited; (d) the inability of the investment advisor to correctly predict the direction of security prices, interest rates, exchange rates and other economic factors; and (e) the possibility that the counterparty is in default of its obligations.

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

Repurchase agreements are subject to the risk of failure. If the Fund’s counterparty defaults 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.

Using leverage can result in additional risks and costs, and can increase the effect of any losses.

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

The information presented is not intended as an investment recommendation or advice to any specific individual. By providing this information, First Trust does not undertake to provide advice in any 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 for exercising an independent judgment to determine whether investments are appropriate for their clients.

The daily closing price of the New York Stock Exchange and the net asset value per share, as well as other information, can be found at www.ftportfolios.com or by calling 1-800-988-5891.

Resource: www.businesswire.com

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