DEF 14A: First Trust Funds Announce Joint Annual Meetings of Shareholders to Elect Trustees

First Trust Enhanced Equity Income Fund, First Trust Mortgage Income Fund, and First Trust Intermediate Duration Preferred & Income Fund will hold joint annual meetings on April 30, 2024, to elect two Class II Trustees for each fund.

Summary

• First Trust Enhanced Equity Income Fund, First Trust Mortgage Income Fund, and First Trust Intermediate Duration Preferred & Income Fund are holding Joint Annual Meetings of Shareholders on April 30, 2024.
• The primary purpose of the meetings is to elect two Class II Trustees for each fund.
• Shareholders of record as of March 4, 2024, for First Trust Enhanced Equity Income Fund and First Trust Intermediate Duration Preferred & Income Fund, and March 8, 2024, for First Trust Mortgage Income Fund, are entitled to vote.
• The nominees for Class II Trustees are Richard E. Erickson and Thomas R. Kadlec, who are already serving as Class II Trustees.
• If elected, Erickson and Kadlec will serve a three-year term expiring at the Funds' 2027 annual meeting.
• The Board of Trustees recommends that shareholders vote FOR the election of each nominee.
• The proxy statement is available online, and shareholders can request copies of annual and semi-annual reports.
• The document also details the composition of the Board of Trustees, their qualifications, and compensation.
• The document also includes information about the Audit Committee and its report, as well as details on independent auditor fees.

Sentiment

Score: 7

Explanation: The document is a standard proxy statement, which is generally neutral in tone. The Board's recommendation to vote for the nominees suggests a positive outlook on the current leadership. However, the document also acknowledges certain risks and limitations, preventing a higher sentiment score.

Positives

• The Board of Trustees unanimously recommends voting FOR the election of each nominee, suggesting confidence in their abilities.
• The document provides detailed information about the Trustees, their qualifications, and their compensation, promoting transparency.
• The Audit Committee's report indicates a thorough review of the Funds' financial statements and accounting practices.
• The Funds have a unitary board leadership structure, which is believed to promote efficiency and consistency in governance.
• The Funds have established five standing committees to oversee various aspects of their operations.

Negatives

• The document notes that the Funds and their service providers have become more susceptible to potential operational risks through breaches in cyber security.
• The document mentions that the Funds' ability to manage risk is subject to substantial limitations.
• The document notes that there were some late filings of Form 3 by officers of Stonebridge, the Funds' investment sub-advisor, and a portfolio manager to the Fund.

Risks

• The Funds are susceptible to operational risks through breaches in cyber security.
• The Funds' ability to manage risk is subject to substantial limitations.
• The document mentions that not all risks that may affect the Funds can be identified nor can controls be developed to eliminate or mitigate their occurrence or effects.
• The document notes that it may not be practical or cost-effective to eliminate or mitigate certain risks, the processes and controls employed to address certain risks may be limited in their effectiveness, and some risks are simply beyond the reasonable control of the Funds or the Advisor or other service providers.

Future Outlook

The document outlines the process for future shareholder proposals and communications, indicating a commitment to ongoing shareholder engagement.

Management Comments

• The Board of Trustees of each Fund has determined that the use of this Joint Proxy Statement is in the best interests of the Fund in light of the same matter being considered and voted on by shareholders.
• The Board of Trustees of Each Fund Unanimously Recommends that Shareholders Vote FOR the Election of Each Nominee.

Industry Context

This announcement is typical for registered investment companies, ensuring compliance with SEC regulations and providing shareholders with the opportunity to participate in the governance of the funds.

Comparison to Industry Standards

• The structure of the Board of Trustees, with a mix of Independent and Interested Trustees, is a common practice in the investment management industry.
• The establishment of various committees, such as the Audit Committee and the Nominating and Governance Committee, aligns with industry best practices for corporate governance.
• The disclosure of Trustee compensation and beneficial ownership is standard practice for registered investment companies.
• The process for shareholder proposals and communications is consistent with SEC regulations and industry norms.

Stakeholder Impact

• Shareholders have the opportunity to influence the governance of the Funds by voting on the election of Trustees.
• The election of qualified Trustees is intended to benefit shareholders by ensuring effective oversight of the Funds' operations.
• The disclosure of Trustee compensation and beneficial ownership promotes transparency and accountability to shareholders.

Next Steps

• Shareholders are requested to complete, sign, date, and return the proxy card promptly.
• Shareholders can attend the Joint Annual Meetings of Shareholders on April 30, 2024, to vote in person.
• The elected Trustees will serve a three-year term expiring at the 2027 annual meeting.

Key Dates

Keywords

Trustees, Shareholders, First Trust, Election, Funds, Meeting, Proxy