As the mortgage market continues to suffer at the hands of an artificially low interest rate environment created by the Federal Reserve through its quantitative easing policies, diversified, closed-end management investment company First Trust Mortgage Income Fund (NYSE:FMY) announced this week that it is cutting its monthly distribution 15% beginning with the June payout.
The dividend, which is being reduced from $0.10 per share to $0.085 per share, will be payable on June 17 to the holders of record at the close of business on June 5. The fund invests primarily in mortgage-backed securities. The company's press release says: "The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital."
Brookfield Investment Management serves as the sub-advisor to First Trust Mortgage. Brookfield is a wholly owned subsidiary of Brookfield Asset Management, a global alternative asset manager with approximately $185 billion in assets under management as of March 31.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.