First Trust Preferred Securities and Income Fund
Portfolio of Investments
January 31, 2024 (Unaudited)
Shares | Description | Stated Rate | Stated Maturity | Value |
$25 PAR PREFERRED SECURITIES – 14.2% | ||||
Automobiles – 0.1% | ||||
13,042 | Ford Motor Co. | 6.50 % | 08/15/62 | $324,094 |
Banks – 1.2% | ||||
32,003 | Bank of America Corp., Series KK | 5.38 % | (a) | 765,512 |
17,426 | JPMorgan Chase & Co., Series LL | 4.63 % | (a) | 371,174 |
16,488 | KeyCorp (b) | 6.20 % | (a) | 368,507 |
30,333 | Pinnacle Financial Partners, Inc., Series B | 6.75 % | (a) | 733,452 |
10,557 | US Bancorp, Series K | 5.50 % | (a) | 258,118 |
3,232 | Wells Fargo & Co., Series AA | 4.70 % | (a) | 66,838 |
6,320 | Wells Fargo & Co., Series Z | 4.75 % | (a) | 131,329 |
2,694,930 | ||||
Capital Markets – 1.0% | ||||
25,553 | Affiliated Managers Group, Inc. | 4.20 % | 09/30/61 | 435,679 |
53,659 | Carlyle Finance LLC | 4.63 % | 05/15/61 | 1,072,643 |
28,058 | KKR Group Finance Co., IX LLC | 4.63 % | 04/01/61 | 555,548 |
2,063,870 | ||||
Consumer Finance – 0.0% | ||||
2,923 | Capital One Financial Corp., Series J | 4.80 % | (a) | 56,677 |
Diversified REITs – 0.3% | ||||
27,478 | Global Net Lease, Inc., Series A | 7.25 % | (a) | 572,092 |
Diversified Telecommunication Services – 0.4% | ||||
41,106 | AT&T, Inc., Series C | 4.75 % | (a) | 866,515 |
Electric Utilities – 1.3% | ||||
13,017 | SCE Trust IV, Series J (b) | 5.38 % | (a) | 297,178 |
9,733 | SCE Trust V, Series K (b) | 5.45 % | (a) | 234,857 |
85,000 | SCE Trust VII, Series M | 7.50 % | (a) | 2,235,500 |
2,767,535 | ||||
Financial Services – 0.4% | ||||
39,795 | Equitable Holdings, Inc., Series A | 5.25 % | (a) | 886,633 |
Gas Utilities – 0.4% | ||||
67,017 | South Jersey Industries, Inc. | 5.63 % | 09/16/79 | 818,613 |
Independent Power & Renewable Electricity Producers – 0.4% | ||||
35,878 | Brookfield BRP Holdings Canada, Inc. | 4.63 % | (a) | 557,544 |
21,958 | Brookfield Renewable Partners, L.P., Series 17 | 5.25 % | (a) | 384,265 |
941,809 | ||||
Insurance – 5.6% | ||||
56,757 | AEGON Funding Co., LLC | 5.10 % | 12/15/49 | 1,260,573 |
77,331 | American Equity Investment Life Holding Co., Series A (b) | 5.95 % | (a) | 1,788,666 |
36,659 | American Equity Investment Life Holding Co., Series B (b) | 6.63 % | (a) | 923,440 |
4,822 | AmTrust Financial Services, Inc. | 7.25 % | 06/15/55 | 75,223 |
5,383 | AmTrust Financial Services, Inc. | 7.50 % | 09/15/55 | 83,975 |
28,000 | Arch Capital Group Ltd., Series G | 4.55 % | (a) | 569,240 |
1,909 | Argo Group International Holdings, Inc. (b) | 7.00 % | (a) | 45,358 |
10,322 | Aspen Insurance Holdings, Ltd. | 5.63 % | (a) | 223,678 |
48,607 | Aspen Insurance Holdings, Ltd. | 5.63 % | (a) | 1,014,914 |
29,701 | Athene Holding Ltd., Series A (b) | 6.35 % | (a) | 706,290 |
1,656 | Athene Holding Ltd., Series D | 4.88 % | (a) | 30,454 |
52,818 | Athene Holding Ltd., Series E (b) | 7.75 % | (a) | 1,375,909 |
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Shares | Description | Stated Rate | Stated Maturity | Value |
$25 PAR PREFERRED SECURITIES (Continued) | ||||
Insurance (Continued) | ||||
23,160 | CNO Financial Group, Inc. | 5.13 % | 11/25/60 | $399,510 |
73,827 | Delphi Financial Group, Inc., 3 Mo. CME Term SOFR + CSA + 3.19% (c) | 8.83 % | 05/15/37 | 1,786,982 |
47,092 | F&G Annuities & Life, Inc. | 7.95 % | 12/15/53 | 1,238,049 |
17,455 | Metlife, Inc., Series F | 4.75 % | (a) | 375,457 |
10,700 | Phoenix Cos. (The), Inc. | 7.45 % | 01/15/32 | 187,919 |
3,164 | RenaissanceRe Holdings, Ltd., Series G | 4.20 % | (a) | 57,869 |
12,143,506 | ||||
Mortgage Real Estate Investment Trusts – 0.3% | ||||
23,983 | AGNC Investment Corp., Series F (b) | 6.13 % | (a) | 553,767 |
Multi-Utilities – 0.8% | ||||
27,276 | Algonquin Power & Utilities Corp., Series 19-A (b) | 6.20 % | 07/01/79 | 675,627 |
28,651 | Brookfield Infrastructure Finance ULC | 5.00 % | 05/24/81 | 505,690 |
29,230 | Brookfield Infrastructure Partners, L.P., Series 13 | 5.13 % | (a) | 508,602 |
1,689,919 | ||||
Oil, Gas & Consumable Fuels – 0.2% | ||||
14,599 | NuStar Energy, L.P., Series A, 3 Mo. CME Term SOFR + CSA + 6.77% (c) | 12.41 % | (a) | 376,946 |
Real Estate Management & Development – 1.0% | ||||
52,168 | Brookfield Property Partners, L.P., Series A | 5.75 % | (a) | 604,627 |
10,209 | Brookfield Property Partners, L.P., Series A-1 | 6.50 % | (a) | 136,699 |
49,009 | Brookfield Property Partners, L.P., Series A2 | 6.38 % | (a) | 622,414 |
55,318 | Brookfield Property Preferred, L.P. | 6.25 % | 07/26/81 | 718,581 |
3,087 | DigitalBridge Group, Inc., Series I | 7.15 % | (a) | 70,847 |
115 | DigitalBridge Group, Inc., Series J | 7.13 % | (a) | 2,639 |
2,155,807 | ||||
Specialized REITs – 0.0% | ||||
2,712 | National Storage Affiliates Trust, Series A | 6.00 % | (a) | 63,271 |
Wireless Telecommunication Services – 0.8% | ||||
38,882 | United States Cellular Corp. | 6.25 % | 09/01/69 | 811,079 |
1,389 | United States Cellular Corp. | 5.50 % | 03/01/70 | 25,710 |
47,060 | United States Cellular Corp. | 5.50 % | 06/01/70 | 863,551 |
1,700,340 | ||||
Total $25 Par Preferred Securities | 30,676,324 | |||
(Cost $35,357,440) | ||||
$1,000 PAR PREFERRED SECURITIES – 2.5% | ||||
Banks – 2.5% | ||||
1,013 | Bank of America Corp., Series L | 7.25 % | (a) | 1,233,682 |
3,519 | Wells Fargo & Co., Series L | 7.50 % | (a) | 4,257,990 |
Total $1,000 Par Preferred Securities | 5,491,672 | |||
(Cost $6,131,526) | ||||
Par Amount | Description | Stated Rate | Stated Maturity | Value |
CAPITAL PREFERRED SECURITIES – 77.8% | ||||
Banks – 40.9% | ||||
$1,300,000 | Banco Bilbao Vizcaya Argentaria S.A. (b) (d) | 9.38 % | (a) | 1,381,665 |
1,700,000 | Banco Bilbao Vizcaya Argentaria S.A., Series 9 (b) (d) | 6.50 % | (a) | 1,665,953 |
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Par Amount | Description | Stated Rate | Stated Maturity | Value |
CAPITAL PREFERRED SECURITIES (Continued) | ||||
Banks (Continued) | ||||
$900,000 | Banco Mercantil del Norte S.A. (b) (d) (e) | 7.50 % | (a) | $858,388 |
1,000,000 | Banco Mercantil del Norte S.A. (b) (d) (e) | 7.63 % | (a) | 976,875 |
1,100,000 | Banco Mercantil del Norte S.A. (b) (d) (e) | 8.38 % | (a) | 1,087,282 |
1,600,000 | Banco Santander S.A. (b) (d) | 4.75 % | (a) | 1,380,572 |
800,000 | Banco Santander S.A. (b) (d) | 9.63 % | (a) | 848,371 |
1,600,000 | Banco Santander S.A. (b) (d) | 9.63 % | (a) | 1,720,000 |
500,000 | Bank of America Corp., Series RR (b) | 4.38 % | (a) | 457,841 |
5,900,000 | Bank of America Corp., Series TT (b) | 6.13 % | (a) | 5,889,974 |
2,500,000 | Bank of Nova Scotia (The) (b) | 8.63 % | 10/27/82 | 2,592,885 |
800,000 | Bank of Nova Scotia (The) (b) | 8.00 % | 01/27/84 | 814,674 |
1,300,000 | Barclays PLC (b) (d) | 4.38 % | (a) | 1,017,729 |
4,960,000 | Barclays PLC (b) (d) | 8.00 % | (a) | 4,810,264 |
1,100,000 | Barclays PLC (b) (d) | 9.63 % | (a) | 1,135,687 |
650,000 | BBVA Bancomer S.A. (b) (d) (e) | 5.88 % | 09/13/34 | 605,509 |
1,300,000 | BBVA Bancomer S.A. (b) (d) (e) | 8.45 % | 06/29/38 | 1,357,797 |
3,150,000 | BNP Paribas S.A. (b) (d) (e) | 4.63 % | (a) | 2,565,995 |
1,840,000 | BNP Paribas S.A. (b) (d) (e) | 7.75 % | (a) | 1,863,079 |
2,650,000 | BNP Paribas S.A. (b) (d) (e) | 8.50 % | (a) | 2,750,589 |
1,000,000 | Citigroup, Inc. (b) | 3.88 % | (a) | 923,922 |
2,000,000 | Citigroup, Inc. (b) | 7.38 % | (a) | 2,038,528 |
700,000 | Citigroup, Inc. (b) | 7.63 % | (a) | 717,396 |
817,000 | Citigroup, Inc., Series M (b) | 6.30 % | (a) | 814,738 |
2,770,000 | Citigroup, Inc., Series P (b) | 5.95 % | (a) | 2,736,925 |
1,400,000 | Citizens Financial Group, Inc., Series F (b) | 5.65 % | (a) | 1,369,345 |
547,000 | Citizens Financial Group, Inc., Series G (b) | 4.00 % | (a) | 485,463 |
2,500,000 | CoBank ACB, Series I (b) | 6.25 % | (a) | 2,443,077 |
1,115,000 | CoBank ACB, Series K (b) | 6.45 % | (a) | 1,097,160 |
600,000 | Commerzbank AG (b) (d) (f) | 7.00 % | (a) | 579,895 |
650,000 | Danske Bank A.S. (b) (d) (f) | 7.00 % | (a) | 646,376 |
600,000 | Farm Credit Bank of Texas, Series 3 (b) (e) | 6.20 % | (a) | 555,000 |
1,100,000 | Farm Credit Bank of Texas, Series 4 (b) (e) | 5.70 % | (a) | 1,056,000 |
630,000 | Fifth Third Bancorp, Series L (b) | 4.50 % | (a) | 596,879 |
200,000 | HSBC Holdings PLC (b) (d) | 4.60 % | (a) | 166,359 |
2,000,000 | HSBC Holdings PLC (b) (d) | 8.00 % | (a) | 2,086,582 |
1,130,000 | ING Groep N.V. (b) (d) | 5.75 % | (a) | 1,063,510 |
1,000,000 | ING Groep N.V. (b) (d) | 6.50 % | (a) | 978,687 |
3,400,000 | ING Groep N.V. (b) (d) (f) | 7.50 % | (a) | 3,379,770 |
3,882,000 | Intesa Sanpaolo S.p.A. (b) (d) (e) | 7.70 % | (a) | 3,830,231 |
800,000 | Lloyds Banking Group PLC (b) (d) | 6.75 % | (a) | 779,698 |
2,331,000 | Lloyds Banking Group PLC (b) (d) | 7.50 % | (a) | 2,280,881 |
3,550,000 | Lloyds Banking Group PLC (b) (d) | 8.00 % | (a) | 3,489,322 |
87,000 | M&T Bank Corp., Series F (b) | 5.13 % | (a) | 79,676 |
200,000 | NatWest Group PLC (b) (d) | 6.00 % | (a) | 195,337 |
2,100,000 | NatWest Group PLC (b) (d) | 8.00 % | (a) | 2,109,639 |
1,406,000 | PNC Financial Services Group (The), Inc., Series U (b) | 6.00 % | (a) | 1,347,468 |
494,000 | PNC Financial Services Group (The), Inc., Series V (b) | 6.20 % | (a) | 485,100 |
1,650,000 | PNC Financial Services Group (The), Inc., Series W (b) | 6.25 % | (a) | 1,571,445 |
3,250,000 | Societe Generale S.A. (b) (d) (e) | 5.38 % | (a) | 2,663,511 |
1,500,000 | Societe Generale S.A. (b) (d) (e) | 9.38 % | (a) | 1,560,345 |
1,200,000 | Societe Generale S.A. (b) (d) (e) | 10.00 % | (a) | 1,283,276 |
500,000 | Standard Chartered PLC (b) (d) (e) | 7.75 % | (a) | 509,578 |
800,000 | Svenska Handelsbanken AB (b) (d) (f) | 4.75 % | (a) | 678,226 |
200,000 | Swedbank AB (b) (d) (f) | 7.63 % | (a) | 200,680 |
3,450,000 | Toronto-Dominion Bank (The) (b) | 8.13 % | 10/31/82 | 3,591,895 |
400,000 | Truist Financial Corp., Series P (b) | 4.95 % | (a) | 390,530 |
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Par Amount | Description | Stated Rate | Stated Maturity | Value |
CAPITAL PREFERRED SECURITIES (Continued) | ||||
Banks (Continued) | ||||
$400,000 | UniCredit S.p.A. (b) (d) (f) | 8.00 % | (a) | $399,886 |
750,000 | UniCredit S.p.A. (b) (e) | 5.46 % | 06/30/35 | 703,807 |
1,000,000 | Wells Fargo & Co. (b) | 7.63 % | (a) | 1,050,028 |
88,717,300 | ||||
Capital Markets – 5.6% | ||||
1,568,000 | Apollo Management Holdings, L.P. (b) (e) | 4.95 % | 01/14/50 | 1,483,226 |
1,500,000 | Ares Finance Co. III LLC (b) (e) | 4.13 % | 06/30/51 | 1,343,518 |
1,516,000 | Charles Schwab (The) Corp., Series G (b) | 5.38 % | (a) | 1,498,358 |
500,000 | Charles Schwab (The) Corp., Series H (b) | 4.00 % | (a) | 415,701 |
795,000 | Charles Schwab (The) Corp., Series I (b) | 4.00 % | (a) | 723,467 |
900,000 | Charles Schwab (The) Corp., Series K (b) | 5.00 % | (a) | 838,762 |
4,100,000 | Credit Suisse Group AG, Claim (g) (h) | 471,500 | ||
1,600,000 | Credit Suisse Group AG, Claim (g) (h) | 184,000 | ||
2,425,000 | Credit Suisse Group AG, Claim (g) (h) | 278,875 | ||
1,500,000 | Credit Suisse Group AG, Claim (g) (h) | 172,500 | ||
2,800,000 | Deutsche Bank AG, Series 2020 (b) (d) | 6.00 % | (a) | 2,549,204 |
1,600,000 | Goldman Sachs Group (The), Inc., Series W (b) | 7.50 % | (a) | 1,684,590 |
513,000 | State Street Corp., Series I (b) | 6.70 % | (a) | 512,999 |
12,156,700 | ||||
Consumer Finance – 0.2% | ||||
488,000 | Ally Financial, Inc., Series B (b) | 4.70 % | (a) | 397,030 |
Electric Utilities – 0.4% | ||||
320,000 | American Electric Power Co., Inc. (b) | 3.88 % | 02/15/62 | 282,962 |
186,000 | Edison International, Series A (b) | 5.38 % | (a) | 179,422 |
500,000 | Emera, Inc., Series 16-A (b) | 6.75 % | 06/15/76 | 491,824 |
954,208 | ||||
Financial Services – 3.4% | ||||
2,500,000 | American AgCredit Corp. (b) (e) | 5.25 % | (a) | 2,350,000 |
1,500,000 | Capital Farm Credit ACA, Series 1 (b) (e) | 5.00 % | (a) | 1,425,000 |
600,000 | Compeer Financial ACA (b) (e) | 4.88 % | (a) | 573,000 |
2,920,000 | Corebridge Financial, Inc. (b) | 6.88 % | 12/15/52 | 2,931,579 |
7,279,579 | ||||
Food Products – 2.9% | ||||
300,000 | Dairy Farmers of America, Inc. (h) (i) | 7.13 % | (a) | 281,250 |
1,305,000 | Land O’Lakes Capital Trust I (h) (i) | 7.45 % | 03/15/28 | 1,266,033 |
1,400,000 | Land O’Lakes, Inc. (e) | 7.00 % | (a) | 1,064,000 |
1,200,000 | Land O’Lakes, Inc. (e) | 7.25 % | (a) | 948,000 |
3,000,000 | Land O’Lakes, Inc. (e) | 8.00 % | (a) | 2,670,000 |
6,229,283 | ||||
Insurance – 11.6% | ||||
1,822,000 | Assurant, Inc. (b) | 7.00 % | 03/27/48 | 1,858,569 |
850,000 | Assured Guaranty Municipal Holdings, Inc. (b) (e) | 6.40 % | 12/15/66 | 773,084 |
2,100,000 | AXIS Specialty Finance LLC (b) | 4.90 % | 01/15/40 | 1,812,812 |
2,000,000 | CNP Assurances SACA (b) (f) | 4.88 % | (a) | 1,631,490 |
1,276,000 | Enstar Finance LLC (b) | 5.75 % | 09/01/40 | 1,225,571 |
1,085,000 | Enstar Finance LLC (b) | 5.50 % | 01/15/42 | 959,871 |
1,000,000 | Fortegra Financial Corp. (b) (h) (i) | 8.50 % | 10/15/57 | 947,500 |
4,027,000 | Global Atlantic Fin Co. (b) (e) | 4.70 % | 10/15/51 | 3,588,464 |
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Par Amount | Description | Stated Rate | Stated Maturity | Value |
CAPITAL PREFERRED SECURITIES (Continued) | ||||
Insurance (Continued) | ||||
$2,870,000 | Hartford Financial Services Group (The), Inc., 3 Mo. CME Term SOFR + CSA + 2.13% (c) (e) | 7.77 % | 02/12/47 | $2,485,028 |
1,174,000 | Kuvare US Holdings, Inc. (b) (e) | 7.00 % | 02/17/51 | 1,194,545 |
300,000 | La Mondiale SAM (b) (f) | 5.88 % | 01/26/47 | 294,618 |
1,920,000 | Lancashire Holdings Ltd. (b) (f) | 5.63 % | 09/18/41 | 1,670,799 |
1,558,000 | Liberty Mutual Group, Inc. (b) (e) | 4.13 % | 12/15/51 | 1,368,101 |
579,000 | Lincoln National Corp., Series C (b) | 9.25 % | (a) | 632,780 |
1,500,000 | Prudential Financial, Inc. (b) | 6.00 % | 09/01/52 | 1,495,456 |
2,000,000 | QBE Insurance Group Ltd. (b) (e) | 5.88 % | (a) | 1,974,053 |
1,000,000 | QBE Insurance Group Ltd. (b) (f) | 6.75 % | 12/02/44 | 999,991 |
301,000 | QBE Insurance Group Ltd. (b) (f) | 5.88 % | 06/17/46 | 296,477 |
25,209,209 | ||||
Multi-Utilities – 2.0% | ||||
3,150,000 | Algonquin Power & Utilities Corp. (b) | 4.75 % | 01/18/82 | 2,727,972 |
1,870,000 | Sempra (b) | 4.13 % | 04/01/52 | 1,655,698 |
4,383,670 | ||||
Oil, Gas & Consumable Fuels – 7.8% | ||||
2,132,000 | Enbridge, Inc. (b) | 6.25 % | 03/01/78 | 2,038,158 |
440,000 | Enbridge, Inc. (b) | 7.63 % | 01/15/83 | 445,773 |
1,200,000 | Enbridge, Inc. (b) | 8.50 % | 01/15/84 | 1,285,914 |
3,040,000 | Enbridge, Inc., Series 16-A (b) | 6.00 % | 01/15/77 | 2,931,033 |
1,360,000 | Enbridge, Inc., Series 20-A (b) | 5.75 % | 07/15/80 | 1,274,350 |
510,000 | Energy Transfer, L.P. (b) | 8.00 % | 05/15/54 | 528,092 |
490,000 | Energy Transfer, L.P., Series B (b) | 6.63 % | (a) | 443,670 |
1,852,000 | Energy Transfer, L.P., Series F (b) | 6.75 % | (a) | 1,816,173 |
3,625,000 | Energy Transfer, L.P., Series G (b) | 7.13 % | (a) | 3,513,172 |
66,000 | Enterprise Products Operating LLC (b) | 5.38 % | 02/15/78 | 61,662 |
1,700,000 | Transcanada Trust (b) | 5.50 % | 09/15/79 | 1,520,553 |
1,200,000 | Transcanada Trust (b) | 5.60 % | 03/07/82 | 1,054,980 |
16,913,530 | ||||
Retail REITs – 0.5% | ||||
400,000 | Scentre Group Trust 2 (b) (e) | 4.75 % | 09/24/80 | 381,444 |
800,000 | Scentre Group Trust 2 (b) (e) | 5.13 % | 09/24/80 | 734,127 |
1,115,571 | ||||
Trading Companies & Distributors – 2.5% | ||||
3,110,000 | AerCap Holdings N.V. (b) | 5.88 % | 10/10/79 | 3,090,896 |
700,000 | Air Lease Corp., Series B (b) | 4.65 % | (a) | 648,890 |
1,944,000 | Aircastle Ltd. (b) (e) | 5.25 % | (a) | 1,713,160 |
5,452,946 | ||||
Total Capital Preferred Securities | 168,809,026 | |||
(Cost $180,245,638) | ||||
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
Principal Value | Description | Stated Coupon | Stated Maturity | Value |
FOREIGN CORPORATE BONDS AND NOTES – 2.3% | ||||
Insurance – 2.3% | ||||
$4,925,666 | Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc. (e) (j) | 7.63 % | 10/15/25 | $4,973,628 |
(Cost $4,985,564) | ||||
Total Investments – 96.8% | 209,950,650 | |
(Cost $226,720,168) | ||
Net Other Assets and Liabilities – 3.2% | 6,935,514 | |
Net Assets – 100.0% | $216,886,164 |
(a) | Perpetual maturity. |
(b) | Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at January 31, 2024. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. |
(c) | Floating or variable rate security. |
(d) | This security is a contingent convertible capital security which may be subject to conversion into common stock of the issuer under certain circumstances. At January 31, 2024, securities noted as such amounted to $57,456,748 or 26.5% of net assets. Of these securities, 8.5% originated in emerging markets, and 91.5% originated in foreign markets. |
(e) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the First Trust Series Fund’s (the “Trust”) Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P., (the “Advisor”). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At January 31, 2024, securities noted as such amounted to $55,269,640 or 25.5% of net assets. |
(f) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act. |
(g) | Claim pending with the administrative court of Switzerland. |
(h) | Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by the Advisor. |
(i) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. See Restricted Securities table. |
(j) | These notes are Senior Payment-in-kind (“PIK”) Toggle Notes whereby the issuer may, at its option, elect to pay interest on the notes (1) entirely in cash or (2) entirely in PIK interest. Interest paid in cash will accrue on the notes at a rate of 7.63% per annum (“Cash Interest Rate”) and PIK interest will accrue on the notes at a rate per annum equal to the Cash Interest Rate plus 75 basis points. There were no interest distributions received during the fiscal year-to-date period (November 1, 2023 through January 31, 2024). |
Abbreviations throughout the Portfolio of Investments: | |
CME | – Chicago Mercantile Exchange |
CSA | – Credit Spread Adjustment |
REITs | – Real Estate Investment Trusts |
SOFR | – Secured Overnight Financing Rate |
Valuation Inputs
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
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Level 1 – Level 1 inputs are quoted prices in active markets for identical investments.
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Level 2 – Level 2 inputs are observable inputs, either directly or indirectly. (Quoted prices for similar investments, valuations based on interest rates and yield curves, or valuations derived from observable market data.)
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Level 3 – Level 3 inputs are unobservable inputs that may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
First Trust Preferred Securities and Income Fund
Portfolio of Investments (Continued)
January 31, 2024 (Unaudited)
A summary of the inputs used to value the Fund’s investments as of January 31, 2024 is as follows:
Total Value at 1/31/2024 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
$25 Par Preferred Securities: | ||||
Gas Utilities | $818,613 | $— | $818,613 | $— |
Insurance | 12,143,506 | 10,009,407 | 2,134,099 | — |
Other Industry Categories* | 17,714,205 | 17,714,205 | — | — |
$1,000 Par Preferred Securities* | 5,491,672 | 5,491,672 | — | — |
Capital Preferred Securities* | 168,809,026 | — | 168,809,026 | — |
Foreign Corporate Bonds and Notes* | 4,973,628 | — | 4,973,628 | — |
Total Investments | $209,950,650 | $33,215,284 | $176,735,366 | $— |
* | See Portfolio of Investments for industry breakout. |
Restricted Securities
As of January 31, 2024, the Fund held restricted securities as shown in the following table that the Advisor has deemed illiquid.
Security | Acquisition Date | Par Amount | Current Price | Carrying Cost | Value | % of Net Assets |
Dairy Farmers of America, Inc., 7.13% | 10/04/16 | $300,000 | $93.75 | $310,125 | $281,250 | 0.13 % |
Fortegra Financial Corp., 8.50%, 10/15/57 | 10/12/17 | 1,000,000 | 94.75 | 1,000,000 | 947,500 | 0.44 |
Land O’Lakes Capital Trust I, 7.45%, 03/15/28 | 07/23/14-03/20/15 | 1,305,000 | 97.01 | 1,333,756 | 1,266,033 | 0.58 |
$2,643,881 | $2,494,783 | 1.15 % |