First Trust Mortgage Income Fund Declares its Monthly Common Share Distribution of $0.065 Per Share for February
MWN-AI** Summary
First Trust Mortgage Income Fund (NYSE: FMY) has announced its monthly common share distribution of $0.065 per share for February 2026, scheduled to be paid on February 17, 2026. Shareholders will need to be on record by February 2, 2026, with the ex-dividend date also expected on February 2. This distribution equates to a distribution rate of 6.10% based on the Fund's net asset value (NAV) of $12.79 as of January 16, 2026, and a slightly higher rate of 6.36% based on the closing market price of $12.26 on the same date.
The fund's distributions may comprise net investment income, realized capital gains, or a return of capital, with a final classification of the distribution's tax status to be provided on Form 1099-DIV at the end of 2026. As a closed-end management investment company, FMY aims to deliver high current income while preserving capital by investing primarily in high-quality mortgage-backed securities tied to both residential and commercial mortgage loans.
Managed by First Trust Advisors L.P., which oversees approximately $307 billion in assets, FMY emphasizes the importance of understanding the inherent risks involved in its investment strategies. Shareholders are warned that investments can fluctuate due to market conditions and that they may not achieve the Fund's objectives, with risks including market fluctuations, interest rate changes, and issuer-specific challenges.
The Fund continues to emphasize transparency to shareholders, providing regular updates and information about investment performance, thereby allowing investors to make informed decisions tailored to their financial strategies. For more details, investors can visit the Fund's website or contact the First Trust representatives directly.
MWN-AI** Analysis
The recent announcement from First Trust Mortgage Income Fund (NYSE: FMY) regarding its monthly common share distribution of $0.065 per share for February 2026 highlights a steady income opportunity for investors. With a distribution rate of 6.10% based on the net asset value (NAV) of $12.79, and 6.36% based on the recent closing market price of $12.26, FMY continues to offer attractive returns relative to prevailing interest rates, particularly in a low-yield environment.
Investors evaluating FMY should consider its focus on mortgage-backed securities, which can provide stable income but also come with inherent risks such as credit, interest rate, and liquidity risks. The fund’s management strategy seeks to balance yield and credit quality, targeting well-rated securities while preserving capital. This cautious approach is particularly relevant given current economic uncertainties, including rising inflation and potential interest rate hikes which could impact the value of fixed-income assets.
Potential investors should also be aware of market conditions that could affect FMY’s performance, including changes in fiscal policies and the broader economic landscape. Given the nature of the underlying assets, a downturn in the real estate market or rising default rates could pose risks to income stability.
For those seeking a blend of income and a diversified approach to mortgage securities, FMY may be a suitable consideration. However, it’s crucial to approach with a clear understanding of your investment goals and risk tolerance. Investors should remain vigilant about market dynamics and periodically review the fund's performance relative to other investments. Overall, while FMY offers consistent income potential, ongoing diligence is necessary in navigating the complexities of the bond and mortgage markets.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
First Trust Mortgage Income Fund (the "Fund") (NYSE: FMY) has declared the Fund’s regularly scheduled monthly common share distribution in the amount of $0.065 per share payable on February 17, 2026, to shareholders of record as of February 2, 2026. The ex-dividend date is expected to be February 2, 2026. The monthly distribution information for the Fund appears below.
First Trust Mortgage Income Fund ( FMY ): | |
Distribution per share: | $0.065 |
Distribution Rate based on the January 16, 2026 NAV of $12.79: | 6.10% |
Distribution Rate based on the January 16, 2026 closing market price of $12.26: | 6.36% |
A portion of this distribution may come from net investment income, net short-term realized capital gains or return of capital. The final determination of the source and tax status of all distributions paid in 2026 will be made after the end of 2026 and will be provided on Form 1099-DIV.
The Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to preserve capital. The Fund pursues these investment 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 portfolio managers, offer an attractive combination of credit quality, yield and maturity.
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 $307 billion as of November 30, 2025 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.
Principal Risk Factors: Risks are inherent in all investing. Certain risks applicable to the Fund are identified below, which includes the risk that you could lose some or all of your investment in the Fund. The principal risks of investing in the Fund are spelled out in the Fund's annual shareholder reports. The order of the below risk factors does not indicate the significance of any particular risk factor. The Fund also files reports, proxy statements and other information that is available for review.
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 Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Market risk is the risk that a particular investment, or shares of a fund in general may fall in value. Investments held by the Fund are subject to market fluctuations caused by real or perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund and its investments.
Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. For example, changes in governmental fiscal and regulatory policies, disruptions to banking and real estate markets, actual and threatened international armed conflicts and hostilities, and public health crises, among other significant events, could have a material impact on the value of the fund's investments.
The debt securities in which the Fund invests are subject to certain risks, including issuer risk, reinvestment risk, prepayment risk, credit risk, interest rate risk and liquidity 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. Liquidity risk is the risk that illiquid and restricted securities may be difficult to value and to dispose of at a fair price at the times when the Fund believes it is desirable to do so.
A mortgage-backed security may be negatively affected by the quality of the mortgages underlying such security and the structure of its issuer. For example, if a mortgage underlying a particular mortgage-backed security defaults, the value of that security may decrease. Moreover, a downturn in the markets for residential or commercial real estate or a general economic downturn could negatively affect both the price and liquidity of privately issued mortgage-backed securities. 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.
Investments in asset-backed or mortgage-backed securities offered by non-governmental issuers, such as commercial banks, savings and loans, private mortgage insurance companies, mortgage bankers and other secondary market issuers are subject to additional risks.
The primary risks associated with the use of futures contracts are (a) the imperfect correlation between the change in market value of the instruments or indices underlying the futures contracts and the price of the futures contracts; (b) possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the investment adviser's inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; and (e) the possibility that the counterparty will default in the performance of its obligations.
If a security sold short increases in price, the Fund may have to cover its short position at a higher price than the short sale price, resulting in a loss.
Repurchase agreements are subject to the risk of failure. If the Fund's counterparty defaults on its obligations and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may realize a loss.
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 shareholder reports 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, 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.
The Fund's daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at https://www.ftportfolios.com or by calling 1-800-988-5891.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260120339792/en/
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FAQ**
How does the First Trust Mortgage Income Fund of Beneficial Interest FMY intend to manage the risks associated with mortgage-backed securities, particularly during economic downturns?
What strategies does the First Trust Mortgage Income Fund of Beneficial Interest FMY employ to maintain its distribution rate, especially when faced with interest rate fluctuations?
Can you elaborate on the role of First Trust Advisors L.P. in managing the First Trust Mortgage Income Fund of Beneficial Interest FMY and how that impacts investor performance?
What measures does the First Trust Mortgage Income Fund of Beneficial Interest FMY have in place to mitigate liquidity risk, especially in the context of its investments in subordinated classes of mortgage-backed securities?
**MWN-AI FAQ is based on asking OpenAI questions about First Trust Motgage Income Fund of Beneficial Interest (NYSE: FMY).
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