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First Trust Mortgage Income Fund (FMY)
  • 2020 Estimated Capital Gain Distributions
    First Trust Closed-End Funds are not expected to pay either a short-term or long-term capital gain distribution in December. 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 - First Trust Mortgage Income Fund (the "Fund") is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. As a secondary objective, the Fund seeks to preserve capital. The Fund will pursue its objectives by investing primarily in mortgage-backed securities representing part ownership in a pool of either residential or commercial mortgage loans that, in the opinion of the Fund's investment advisor, offer an attractive combination of credit quality, yield and maturity.
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
Fund TypeFixed Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBNY Mellon Investment Servicing (US) Inc.
Fiscal Year-End10/31
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 11/23/2020)
Closing NAV1$14.39
Closing Market Price2$13.44
Discount to Net Asset Value (NAV)6.60%
Total Net Assets$60,611,354
Common Shares Outstanding4,213,115
Dividend FrequencyMonthly
Dividend Per Share Amt3$0.0600
Distribution Rate45.36%
Daily Volume11,681
Average 30-Day Daily Volume5,640
Closing Market Price 52-Week High/Low$14.44 / $12.54
Closing NAV 52-Week High/Low$15.12 / $13.85
Expense Ratios (as of 4/30/2020)
Annual ExpensesPercent of
Net Assets
Percent of
Management Fees0.85%0.85%
Other Expenses
Total Operating Expenses1.30%1.30%
Leverage Costs0.00%0.00%
Total Annual Expenses1.30%1.30%
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Asset Type Breakdown (as of 10/31/2020)7
  Asset Percent
US Government Agency MBS 62.27%
Non-Agency Mortgage Backed Securities 34.87%
Cash & Cash Equivalents 1.89%
Asset Backed Securities 0.97%
Market Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Leverage Information6
The Fund currently has no outstanding leverage.
Portfolio Characteristics (as of 10/31/2020)7
Weighted Average Effective Duration52.79 Years
Weighted Average Effective Maturity5.17 Years
Credit Quality Breakdown (as of 10/31/2020)7
Credit Quality Percent
Government & Agency 62.27%
Cash & Cash Equivalents 1.89%
AAA 4.67%
AA+ 5.79%
AA 5.16%
AA- 0.77%
A+ 2.40%
A 0.44%
BBB+ 0.60%
BBB 0.84%
BBB- 2.93%
BB+ 0.38%
BB 0.35%
B+ 0.74%
B- 0.81%
CCC 0.07%
CCC- 0.10%
CC 4.81%
C 0.32%
D 0.46%
NR 4.20%
The ratings are by Standard & Poor's. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO), of the creditworthiness of an issuer with respect to debt obligations. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. Sub-investment grade ratings are those rated BB+ or lower. "NR" indicates no rating. 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. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under "Government". Credit ratings are subject to change.
Performance (as of 10/31/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 0.43% 1.87% 2.12% 3.10% 3.51% 4.04% 5.35%
Market Price -1.46% -0.07% 0.93% 2.99% 3.94% 2.69% 4.52%

*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.

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.
6 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.
7 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.
8 Inception Date is 5/25/2005

Risk Considerations

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.

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. The COVID-19 pandemic may last for an extended period of time, and will continue to impact 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, and interest rate risk. Issuer risk is the risk that the value of fixed-income securities may decline for a number of reasons which directly relate to the issuer. Reinvestment risk is the risk that income from the fund's portfolio will decline if the fund invests the proceeds from matured, traded or called bonds at market interest rates that are below the fund portfolio's current earnings rate. Prepayment risk is the risk that, upon a prepayment, the actual outstanding debt on which the fund derives interest income will be reduced. 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. Interest rate risk is the risk that fixed-income securities will decline in value because of changes in market interest rates.

A portion of the fund's managed assets may be invested in subordinated classes of mortgage-backed securities. Such subordinated classes are subject to a greater degree of non-payment risk than are senior classes of the same issuer or agency.

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

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)
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