LDP - FPF: Valuation Isn't Too Attractive Despite Higher Distribution For 2024

2024-04-03 14:18:52 ET

Summary

• The First Trust Intermediate Duration Preferred & Income Fund provides investors with exposure to preferred securities and also focuses on an intermediate duration.
• FPF's valuation suggests it is trading around fair value based on longer-term average levels, but on a shorter-term basis valuation, it is looking a bit rich.
• FPF's intermediate duration could help keep it relatively less interest rate sensitive, but lower interest rates would still look to benefit the fund the most.

Written by Nick Ackerman, co-produced by Stanford Chemist.

With hotter-than-expected inflation data, we could be looking at interest staying higher for longer. That could bode well for funds that look specifically for "limited duration" or "intermediate duration." One such fund in the preferred and income space is the First Trust Intermediate Duration Preferred & Income Fund ( FPF )....

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