WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“First Trust”), a registered investment adviser, is pleased to announce the initial public offering of the First Trust Intermediate Duration Preferred & Income Fund (the “Fund”), a closed-end fund. The Fund’s primary investment objective is to seek a high level of current income. The Fund has a secondary objective of capital appreciation. The Fund is expected to commence trading on May 24, 2013 on the NYSE under the ticker symbol “FPF.”
The Fund has initially raised $1.42 billion in its common share offering and, should the underwriters exercise the overallotment option in full, which may or may not occur, the Fund will have raised approximately $1.63 billion. First Trust is the Fund’s investment adviser and is responsible for supervising the Fund’s sub-advisor, managing the Fund’s business affairs and providing certain clerical, bookkeeping and other administrative services. First Trust, in consultation with the sub-advisor, will also be responsible for determining the Fund’s overall investment strategy and overseeing its implementation. Stonebridge Advisors LLC is the Fund’s investment sub-advisor and is primarily responsible for the day-to-day supervision and investment strategy of, and making investment decisions for, the Fund. The lead managers of the common share underwriting syndicate were Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Shares of closed-end investment companies, like the Fund, usually trade on a national stock exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end Funds often trade at a discount to their net asset value.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before investing. For a prospectus which contains this and other information relevant to an investment in the Fund, please contact First Trust Portfolios L.P. at 1-800-621-1675. Investors should read the prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
Risk Considerations:
The Fund is subject to risks, including the fact that it is a newly organized closed-end management investment company with no operating history. It is designed for long-term investing and not as a vehicle for trading. Shares of closed-end investment companies frequently trade at a discount from their net asset value ("NAV"). The Fund cannot predict whether or when its common shares will trade at, below or above NAV or at, below or above the initial public offering price.
The Fund is subject to various risks, including investment and market risk, market discount from net asset value risk, management risk and reliance on key personnel, preferred and hybrid preferred securities risk, trust preferred securities risk, debt securities risk, credit crisis liquidity and volatility risk, convertible securities and contingent convertible securities risk, concentration in the financials sector risk, government intervention in financial markets risk, real estate investment trust risk, credit and below investment grade securities risk, credit rating agency risk, leverage risk, foreign (non-U.S.) securities risk, emerging markets risk, common stock risk, U.S. Government securities risk, Foreign government securities risk, municipal securities risk, illiquid and restricted securities risk, valuation risk, inflation/deflation risk, potential conflicts of interest risk, new types of securities risk, counterparty and prime brokerage risk, portfolio turnover risk, non-diversified status risk, market disruption and geopolitical risk, certain affiliations risk, anti-takeover provisions risk, temporary defensive strategies risk, secondary market risk for the Fund’s common shares and changes in tax law risk. There can be no assurance that the Fund will achieve its investment objectives or earn a return on its assets.
About First Trust Advisors L.P.
First Trust Advisors L.P., along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, with collective assets under management or supervision of approximately $68 billion as of April 30, 2013 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.
About Stonebridge Advisors LLC
Stonebridge Advisors LLC is a registered investment advisor specializing in preferred and hybrid securities. Stonebridge was formed in December 2004 by First Trust Portfolios L.P. and Stonebridge Asset Management, LLC. The company had assets under management of almost $1.7 billion as of April 30, 2013. These assets come from separately managed accounts, an open-end mutual fund and an active exchange-traded fund.
