First Trust Mortgage Income Fund (NYSE: FMY) is a closed‐end management investment company that seeks to provide investors with a high level of current income, with preservation of capital as a secondary objective. Incorporated in Maryland, the fund principally invests in a diversified portfolio of mortgage‐related and other asset‐backed securities. Its primary focus is on agency and non‐agency residential mortgage‐backed securities (RMBS), commercial mortgage‐backed securities (CMBS) and a range of asset‐backed instruments, including those backed by auto loans, credit cards and other consumer receivables.
The fund is managed by First Trust Advisors L.P., leveraging a research‐driven, bottom‐up approach to credit analysis and portfolio construction. Investment decisions are guided by a team of experienced fixed‐income analysts and portfolio managers with deep expertise in mortgage markets. By maintaining a dynamic allocation among different sectors of the mortgage universe, FMY aims to capture income opportunities while managing risks associated with interest rate fluctuations, credit quality and prepayment speeds.
Since its inception, First Trust Mortgage Income Fund has employed moderate leverage through bank borrowings and repurchase agreements to enhance potential returns. The fund distributes income to shareholders on a monthly basis, reflecting the cash flows generated by its underlying holdings. While the fund’s primary exposure is to U.S. dollar‐denominated securities issued or guaranteed by U.S. government‐sponsored enterprises, it retains the flexibility to allocate a portion of its assets to non‐agency or foreign‐issued instruments when attractive opportunities arise.
Governance is overseen by an independent board of trustees, which works alongside First Trust Advisors to ensure alignment with shareholder interests. Headquartered in Wheaton, Illinois, the fund serves individual and institutional investors seeking a specialized vehicle for accessing the mortgage securities market through a closed‐end structure.
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