Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Investment Objective/Strategy - First Trust Intermediate Duration Preferred & Income Fund (the "Fund") is a diversified, closed-end management investment company. The primary investment objective is to seek a high level of current income. The Fund has a secondary objective of capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its managed assets in preferred securities 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. The Fund seeks to maintain, under normal market conditions, a duration of between three and eight years.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Fund Overview
TickerFPF
Fund TypePreferred Income
Fund AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorStonebridge Advisors LLC
Investor Servicing AgentComputershare Trust Company, N.A.
CUSIP33718W103
Fiscal Year-End10/31
ExchangeNYSE
Inception5/23/2013
Inception Price$25.00
Inception NAV$23.88
Current Fund Data (as of 10/25/2021)
Closing NAV1$24.92
Closing Market Price2$25.31
Premium to Net Asset Value (NAV)1.57%
Total Managed Assets$2,191,863,102
Common Shares Outstanding60,820,579
Dividend FrequencyMonthly
Dividend Per Share Amt3$0.1275
Distribution Rate46.05%
Daily Volume71,274
Average 30-Day Daily Volume75,380
Closing Market Price 52-Week High/Low$26.20 / $21.36
Closing NAV 52-Week High/Low$25.26 / $22.54
Expense Ratios (as of 4/30/2021)
Annual ExpensesPercent of
Net Assets
Percent of
Managed
Assets
Management Fees1.23%0.85%
Other Expenses
0.10%
0.07%
Total Operating Expenses1.33%0.92%
 
Leverage Costs0.41%0.28%
 
Total Annual Expenses1.74%1.20%
 
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Leverage Information (as of 10/25/2021)8
Total Net Assets with Leverage$2,191,863,102
Amount Attributable to Common Shares$1,515,863,102
Amount Attributable to Preferred Shares$0
Amount Attributable to Other Borrowings$676,000,000
Leverage (% of Total Adjusted Net Assets)30.84%
Industry Breakdown (as of 9/30/2021)9
Industry Percent
Banks 42.11%
Insurance 15.92%
Capital Markets 8.64%
Oil, Gas & Consumable Fuels 7.49%
Food Products 4.49%
Diversified Financial Services 4.12%
Electric Utilities 3.55%
Trading Companies & Distributors 3.02%
Multi-Utilities 1.97%
Consumer Finance 1.29%
Energy Equipment & Services 1.15%
Transportation Infrastructure 1.14%
Mortgage Real Estate Investment Trusts (REITs) 1.13%
Real Estate Management & Development 1.12%
Diversified Telecommunication Services 0.85%
Equity Real Estate Investment Trusts (REITS) 0.68%
Gas Utilities 0.53%
Wireless Telecommunication Services 0.41%
Independent Power and Renewable Electricity Producers 0.39%
Security Type Breakdown (as of 9/30/2021)9
Security Percent
Fixed-to-Floating Rate and Fixed-to-Variable Rate Securities 77.69%
Fixed Rate Securities 18.69%
Floating Rate Securities 3.33%
Step-Up Rate Securities 0.29%
Fund Characteristics (as of 9/30/2021)
Weighted Average Effective Duration54.14 Years
% Institutional Securities (e.g. $1000 par)683.02%
% Retail Securities (e.g. $25 par)716.98%
Weighted Average % of Par11108.82%
Market Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Top 10 Holdings (as of 9/30/2021)9
Holding Percent
Barclays Bank PLC, 8.000% 2.48%
Aercap Holdings N.V., 5.875% 1.99%
Emera, Inc., 6.750% 1.97%
Land O'Lakes, Inc., 8.000% 1.64%
Credit Agricole S.A., 8.125% 1.62%
Wells Fargo & Co., 7.500% 1.60%
Enbridge, Inc., 6.250% 1.42%
Credit Suisse Group AG, 7.500% 1.39%
CoBank ACB, 6.250% 1.32%
Societe Generale S.A., 5.375% 1.32%
Credit Quality Breakdown (as of 9/30/2021)9
  Credit Quality Percent
A 0.81%
A- 0.33%
BBB+ 11.50%
BBB 21.79%
BBB- 24.70%
BB+ 24.60%
BB 8.59%
BB- 1.71%
B+ 1.31%
B 0.79%
NR 3.87%
The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including Standard & Poor's Rating Group, a division of the McGraw Hill Companies, Inc., 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 ratings are 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 Breakdown (as of 9/30/2021)9
Country Percent
United States 53.90%
United Kingdom 8.47%
Canada 7.61%
France 5.81%
Netherlands 4.24%
Bermuda 3.97%
Switzerland 3.53%
Australia 2.55%
Italy 2.35%
Spain 1.79%
Mexico 1.50%
Finland 1.29%
Denmark 0.89%
Japan 0.79%
Sweden 0.69%
Germany 0.43%
Chile 0.19%
Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception10
Fund Performance *
Net Asset Value (NAV) 1.57% 7.58% 18.44% 9.97% 8.81% N/A 8.83%
Market Price 1.16% 8.44% 24.14% 12.93% 9.27% N/A 8.20%

*Total return is the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in the NAV and Market Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. Past performance is not indicative of future results.

Footnotes
1 The fund's NAV is calculated by dividing the value of all the fund's assets, less all liabilities, by the total number of common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
4 Distribution rates are calculated by annualizing the most recent distribution paid or declared through today's date and then dividing by the most recent market price. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
5 A measure of a bond's sensitivity to interest rate changes that reflects the change in a bond's price given a change in yield. It accounts for the likelihood of changes in the timing of cash flows in response to interest rate movements. The number shown is based on Managed Assets.
6 Institutional Securities are predominantly $1000 par securities and only trade over-the-counter.
7 Retail Securities are predominantly $25 par securities but also include exchange-traded $20, $50, and $100 par securities.
8 Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increase yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
9 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-PORT Part F) that are based on trade date recording of security transactions. Holdings are subject to change.
10 Inception Date is 5/23/2013
11 The weighted average % of par reflects the average price of the fixed income securities within the portfolio as a % of the underlying face value. This is calculated as a weighted average using the market values of each security within the portfolio. A value above 100 indicates that the underlying securities are trading at a premium, on average, and a value below 100 indicates that the underlying securities are trading at a discount, on average. The face value of a bond is typically $100 or $1000 and the face value of an exchange-traded retail security is typically $25.

Risk Considerations

The Fund is subject to risks, including the fact that it is a diversified closed-end management investment company. 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.

Contingent convertible securities (“CoCos”) may provide for mandatory conversion into common stock of the issuer under certain circumstances. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero; and conversion would deepen the subordination of the investor, hence worsening standing in a bankruptcy.

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. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

As the use of Internet technology has become more prevalent in the course of business, a fund has become more susceptible to potential operational risks through breaches in cyber security.

Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Illiquid and restricted securities are also more difficult to value, especially in challenging markets.

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.

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.

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. These risks may be more pronounced to the extent that the Fund invests a significant amount of its assets in companies located in one region or in emerging markets.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

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. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. 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, and they could result in losses to the fund.

The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
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.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.