Preferred Income, 103  Ticker: FBDYHX
 
Description
A unit investment trust that seeks a high rate of current income by investing in a diversified portfolio of preferred securities.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: PRIN103
Portfolio Status: Secondary
Initial Offer Date: 05/06/2020
Secondary Date: 08/05/2020
Portfolio Ending Date: 05/06/2022
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $10.2170
POP(*): $10.4521
Remaining Deferred Sales Charge: $0.0750
* As of Trade Date: 09/25/2020 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 9/25/2020) Per Unit (as of 9/25/2020)
3.41% $0.35650
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "Historical 12-Month Distribution Rate of Trust Holdings," which is based on the trailing twelve-month distributions paid by the securities included in a trust, will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital. PLEASE NOTE: For trusts that hold preferred securities, the historical distribution rate is calculated using only the holdings that have 12 months of distribution history. Any holdings without a 12 month history of dividends were excluded from the calculation.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 The Southern Company, Series 2020, 4.950%, Due 01/30/2080 SOJD 4.56%
 MetLife, Inc., Series F, 4.750% MET.F 4.54%
 American International Group, Inc., Series A, 5.850% AIG.A 4.46%
 PS Business Parks, Inc., Series Z, 4.875% PSB.Z 4.18%
 Axis Capital Holdings Limited, Series E, 5.500% AXS.E 4.02%
 Arch Capital Group Ltd., Series F, 5.450% ACGLO 4.01%
 Sempra Energy, 5.750%, Due 07/01/2079 SREA 4.00%
 Prudential Financial, Inc., 5.625%, Due 08/15/2058 PRS 3.96%
 JPMorgan Chase & Co., Series DD, 5.750% JPM.D 3.91%
 NextEra Energy Capital Holdings, Series N, 5.650%, Due 03/01/2079 NEE.N 3.91%
 U.S. Bancorp, Series K, 5.500% USB.P 3.89%
 Bank of America Corporation, Series HH, 5.875% BAC.K 3.86%
 Kimco Realty Corporation, Series M, 5.250% KIM.M 2.73%
 Brunswick Corporation, 6.375%, Due 04/15/2049 BC.C 2.63%
 Affiliated Managers Group, Inc., 5.875%, Due 03/30/2059 MGR 2.58%
 W.R. Berkley Corporation, 5.100%, Due 12/30/2059 WRB.F 2.53%
 The Allstate Corporation, Series I, 4.750% ALL.I 2.51%
 RenaissanceRe Holdings Ltd., Series F, 5.750% RNR.F 2.45%
 The Hartford Financial Services Group, Inc., Series G, 6.000% HIG.G 2.45%
 AT&T Inc., 5.350%, Due 11/01/2066 TBB 2.42%
 Duke Energy Corporation, Series A, 5.750% DUK.A 2.38%
 Brunswick Corporation, 6.625%, Due 01/15/2049 BC.B 2.11%
 Athene Holding Ltd., Series B, 5.625% ATH.B 2.10%
 Athene Holding Ltd., Series A, 6.350%, Variable Rate ATH.A 2.05%
 Public Storage, Series J, 4.700% PSA.J 2.03%
 State Street Corporation, Series D, 5.900%, Variable Rate STT.D 2.02%
 First Citizens BancShares, Inc., Series A, 5.375% FCNCP 2.00%
 State Street Corporation, Series G, 5.350%, Variable Rate STT.G 1.98%
 Public Storage, Series K, 4.750% PSA.K 1.98%
 Wells Fargo & Company, Series Z, 4.750% WFC.Z 1.98%
 Wells Fargo & Company, Series Q, 5.850%, Variable Rate WFC.Q 1.96%
 AT&T Inc., 5.625%, Due 08/01/2067 TBC 1.93%
 Duke Energy Corporation, 5.625%, Due 09/15/2078 DUKB 1.93%
 American Financial Group, Inc., 5.875%, Due 03/30/2059 AFGB 1.93%
 The Allstate Corporation, 5.100%, Variable Rate, Due 01/15/2053 ALL.B 1.92%
 
Total Number of Holdings:    35
Underlying Securities information represented above is as of 09/25/2020 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 August 20, 2020
$0.07500 September 18, 2020
$0.07500 October 20, 2020

Risk Considerations

Equity Risk. An investment in a portfolio containing common stocks is subject to certain risks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.

Sector Concentration Risk. A portfolio which is concentrated in an individual sector is subject to additional risks, including limited diversification.

Buy & Hold Risk – Taxable Trusts. This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

COVID-19 Economic Impact Risk. The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

Financials Risk. The companies engaged in the financials sector are subject to the adverse effects of volatile interest rates, economic recession, decreases in the availability of capital, increased competition from new entrants in the field, and potential increased regulation.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.

REITs Risk. An investment in a portfolio containing REIT securities is subject to additional risks including limited diversification. Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Volatility Risk. The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.

Operational Risk. As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial professional or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.