First Trust Specialty Finance and Financial Opportunities Fund (the “Fund”) (NYSE: FGB) has declared the Fund’s regularly scheduled quarterly distribution of $0.175 per share. The distribution will be payable on December 3, 2018, to shareholders of record as of November 23, 2018. The ex-dividend date is expected to be November 21, 2018. The quarterly distribution information for the Fund appears below.
First Trust Specialty Finance and Financial Opportunities Fund (FGB):
|Distribution per share:||$||0.175|
|Distribution Rate based on the November 7, 2018 NAV of $6.03:||11.61%|
|Distribution Rate based on the November 7, 2018 closing market price of $6.24:||11.22%|
A portion of the distribution may be treated as paid from sources other than net investment income, including short-term capital gain, long-term capital gain and return of capital. The final determination of the source and tax status of all distributions paid in 2018 will be made after the end of 2018 and will be provided on Form 1099-DIV.
The Fund is a non-diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to provide attractive total return. The Fund pursues these investment objectives by investing at least 80% of its managed assets in a portfolio of securities of specialty finance and other financial companies that the Fund’s investment sub-advisor believes offer attractive opportunities for income and capital appreciation.
First Trust Advisors L.P. (“FTA”) is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $123 billion as of October 31, 2018 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Confluence Investment Management LLC (“Confluence”), an SEC registered investment advisor, serves as the Fund’s investment sub-advisor. The Confluence team has more than 500 years of combined financial experience and 300 years of portfolio management experience, maintaining a proven track record that dates back to 1994. As of September 30, 2018, Confluence had $9.0 billion dollars in assets under management and supervision.
Past performance is no assurance of future results. 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 Funds investment objectives will be achieved. The Fund may not be appropriate for all investors.
Principal Risk Factors: The Fund invests in business development companies (“BDCs”) which may be subject to a high degree of risks, including management’s ability to meet the BDC’s investment objective, and to manage the BDC’s portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors’ perceptions regarding a BDC or its underlying investments change.
Investing in real estate investment trusts (“REITs”) involves certain unique risks in addition to investing in the real estate industry in general. REITs are subject to interest rate risk and the risk of default by lessees or borrowers.
The Fund may invest in a variety of other mortgage-related securities. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-related securities are subject to the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce the Fund’s returns. The Fund’s investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.
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, availability and cost of capital funds, and competition.
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.
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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
The Funds daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at www.ftportfolios.com or by calling 1-800-988-5891.
First Trust Specialty Finance and Financial Opportunities Fund
Inquiries: Jane Doyle, 630-765-8775
Analyst Inquiries: Jeff
Broker Inquiries: Jeff Margolin, 630-915-6784