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2024 Estimated Capital Gain Distributions
Certain First Trust Open-End Funds are expected to pay a long-term capital gain distribution in December. For a list of open-end funds expected to pay a long-term capital gain distribution, please click here. Also, certain First Trust Open-End Funds are expected to pay short-term capital gain distributions in December. For a list of open-end funds expected to pay a short-term capital gain distribution, please click here. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - The First Trust Preferred Securities and Income Fund seeks to provide current income and total return by investing, under normal market conditions, at least 80% of its net assets (including investment borrowings) in preferred securities and other securities with similar economic characteristics.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Ticker | FPEAX |
Fund Type | Preferred Income |
Investment Advisor | First Trust Advisors L.P. |
Portfolio Manager/Sub-Advisor | Stonebridge Advisors LLC |
CUSIP | 33738A107 |
Share Class | Class A |
Fiscal Year-End | 10/31 |
Inception Date | 2/25/2011 |
Minimum Investment Amount | $2,500 |
Minimum Subsequent Investment Amount | $50 |
Maximum Initial Sales Charge | 4.50% |
Total Expense Ratio* | 1.37% |
Net Expense Ratio* | 1.37% |
* As of 3/1/2024
Pursuant to contract, First Trust has agreed to waive fees and/or pay fund expenses to prevent the net expense ratio of any class of shares of the fund from exceeding 1.15% per year, excluding 12b-1 distribution and service fees, acquired fund fees and expenses and certain other expenses as described in the prospectus, through 2/28/2025, and to not exceed 1.50% per year from 3/01/2025 through 2/28/2034. Net expense ratio shown above includes acquired fund fees and certain other expenses as described in the prospectus.
Net Asset Value1 | $19.89 |
Total Net Assets | $236,030,481 |
Outstanding Shares | 2,089,130 |
NAV 52-Week High/Low | $20.05 / $18.35 |
Holding |
Percent |
Bank of America Corp., 6.13% |
2.61% |
Wells Fargo & Co., 7.50% |
2.05% |
Barclays PLC, 8.00% |
1.80% |
JPMorgan Chase & Co., 6.88% |
1.76% |
Energy Transfer L.P., 7.13% |
1.71% |
Intesa Sanpaolo S.p.A., 7.70% |
1.68% |
Lloyds Banking Group PLC, 8.00% |
1.49% |
Toronto-Dominion Bank (The), 8.13%, 10/31/82 |
1.45% |
Bank of Montreal, 7.70%, 5/26/84 |
1.44% |
Global Atlantic Fin Co., 4.70%, 10/15/51 |
1.40% |
Industry |
Percent |
Banks |
47.86% |
Insurance |
13.00% |
Capital Markets |
10.03% |
Oil, Gas & Consumable Fuels |
7.09% |
Electric Utilities |
5.59% |
Multi-Utilities |
5.05% |
Financial Services |
3.78% |
Food Products |
2.84% |
Wireless Telecommunication Services |
1.66% |
Independent Power and Renewable Electricity Producers |
1.07% |
Real Estate Management & Development |
0.67% |
Gas Utilities |
0.39% |
Retail REITs |
0.34% |
Trading Companies & Distributors |
0.19% |
Diversified Telecommunication Services |
0.18% |
Diversified REITs |
0.16% |
Automobiles |
0.07% |
Specialized REITs |
0.03% |
Security |
Percent |
Fixed-to-Floating Rate and Fixed-to-Variable Rate Securities |
82.79% |
Fixed Rate Securities |
15.95% |
Floating Rate Securities |
1.26% |
Weighted Average Effective Duration6 | 4.33 Years |
Weighted Average Yield-to-Worst7 | 6.50% |
% Institutional Securities (e.g. $1000 par)8 | 84.97% |
% Retail Securities (e.g. $25 par)9 | 15.03% |
Weighted Average % of Par12 | 100.44% |
Past performance is not indicative of future results.
Credit Quality |
Percent |
BBB+ |
12.63% |
BBB |
27.83% |
BBB- |
35.41% |
BB+ |
12.59% |
BB |
6.47% |
BB- |
2.19% |
B |
0.67% |
B- |
0.58% |
NR |
1.63% |
The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody's Investors Service, Inc., Fitch Ratings, or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest rating is used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
Country |
Percent |
United States |
55.84% |
Canada |
13.43% |
United Kingdom |
8.16% |
France |
7.07% |
Spain |
2.75% |
Netherlands |
2.72% |
Bermuda |
2.59% |
Mexico |
2.30% |
Italy |
1.68% |
Germany |
1.53% |
Sweden |
0.54% |
Switzerland |
0.46% |
Australia |
0.38% |
Japan |
0.32% |
Chile |
0.23% |
ICE BofA US Investment Grade Institutional Capital Securities Index - The Index tracks the performance of US dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market. Blended Benchmark - The Benchmark consists of a 30/30/30/10 blend of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Benchmark is intended to reflect the proportional market cap of each segment of the preferred and hybrid securities market. The Blended Benchmark returns are calculated by using the monthly returns of the four indices during each period shown above. At the beginning of each month the four indices are rebalanced to a 30/30/30/10 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark for each period shown above.
ICE BofA Core Plus Fixed Rate Preferred Securities Index - The Index tracks the performance of fixed rate US dollar denominated preferred securities issued in the US domestic market.
ICE USD Contingent Capital Index - The Index tracks the performance of investment grade and below investment grade contingent capital debt publicly issued in the major domestic and eurobond markets.
ICE BofA US High Yield Institutional Capital Securities Index - The Index tracks the performance of US dollar denominated sub-investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market.
Bloomberg US Aggregate Bond Index - The Index covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS.
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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.
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