First Trust Specialty Finance and Financial Opportunities Fund Declares its Quarterly Distribution of $0.0825 Per Share

Rhea-AI Summary

First Trust Specialty Finance and Financial Opportunities Fund (FGB) has announced a quarterly distribution of $0.0825 per share, payable on February 26, 2021, to shareholders recorded as of February 23, 2021. The ex-dividend date is set for February 22, 2021. The distribution yields 8.75% based on the net asset value of $3.77 and 8.97% based on the market price of $3.68. The fund aims for high current income through investments in specialty finance, with 80% of managed assets allocated to this sector.

Positive

• Quarterly distribution of $0.0825 per share is attractive for income-seeking investors.
• Distribution yields 8.75% based on NAV, providing competitive returns.
• Fund's strategy targets specialty finance sectors for potential income and capital appreciation.

Negative

• A portion of the distribution may be sourced from capital gains and return of capital, potentially impacting future income.
• High market fluctuation risks due to economic conditions and events such as COVID-19 could affect fund performance.

First Trust Specialty Finance and Financial Opportunities Fund (the "Fund") (NYSE: FGB) has declared the Fund's regularly scheduled quarterly distribution of $0.0825 per share. The distribution will be payable on February 26, 2021, to shareholders of record as of February 23, 2021. The ex-dividend date is expected to be February 22, 2021. The quarterly distribution information for the Fund appears below.

First Trust Specialty Finance and Financial Opportunities Fund (FGB):
Distribution per share:		$0.0825
Distribution Rate based on the February 9, 2021 NAV of $3.77:		8.75%
Distribution Rate based on the February 9, 2021 closing market price of $3.68:		8.97%

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 2021 will be made after the end of 2021 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 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 $174 billion as of January 31, 2021 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/research experience, maintaining a proven track record that dates back to 1994. As of December 31, 2020, Confluence had $10.6 billion in assets under management and advisement (assets under management = $6.9 billion; assets under advisement = $3.7 billion).

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.

Principal Risk Factors: Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory 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 of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. 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 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. Th

FAQ

What is the distribution amount for FGB in February 2021?

FGB has declared a quarterly distribution of $0.0825 per share for February 2021.

When is the ex-dividend date for FGB's February 2021 distribution?

The ex-dividend date for FGB's distribution is February 22, 2021.

What is the distribution yield for FGB based on NAV?

The distribution yield for FGB based on the February 9, 2021 NAV of $3.77 is 8.75%.

When will FGB's distribution be paid to shareholders?

FGB's distribution will be payable on February 26, 2021.

What percentage of FGB's assets is invested in specialty finance?

FGB invests at least 80% of its managed assets in specialty finance and financial companies.