UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-22795
First
Trust Intermediate Duration Preferred & Income Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
Date of fiscal year end: October 31
Date of reporting period: January 31, 2019
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.
Shares | Description | Stated Rate | Stated Maturity | Value | ||||
$25 PAR PREFERRED SECURITIES – 20.4% | ||||||||
Banks – 3.4% | ||||||||
85,593 | Banc of California, Inc., Series E | 7.00% | (a) | $2,123,562 | ||||
197,943 | Bank of America Corp., Series HH (b) | 5.88% | (a) | 4,988,164 | ||||
210,000 | Citizens Financial Group, Series D (c) | 6.35% | (a) | 5,344,500 | ||||
149,642 | FNB Corp. (b) (c) | 7.25% | (a) | 4,172,019 | ||||
864,211 | GMAC Capital Trust I, Series 2, 3 Mo. LIBOR + 5.79% (b) (d) | 8.40% | 02/15/40 | 22,564,549 | ||||
145,046 | Synovus Financial Corp., Series D (b) (c) | 6.30% | (a) | 3,637,754 | ||||
44,878 | Valley National Bancorp, Series A (c) | 6.25% | (a) | 1,175,804 | ||||
98,964 | Wintrust Financial Corp., Series D (b) (c) | 6.50% | (a) | 2,855,111 | ||||
46,861,463 | ||||||||
Capital Markets – 1.4% | ||||||||
211,494 | Apollo Global Management, LLC, Series B (b) | 6.38% | (a) | 5,132,959 | ||||
145,201 | Apollo Investment Corp. (b) | 6.88% | 07/15/43 | 3,715,694 | ||||
3,067 | Ares Management Corp., Series A | 7.00% | (a) | 82,226 | ||||
388,704 | Morgan Stanley, Series F (b) (c) | 6.88% | (a) | 10,495,008 | ||||
19,425,887 | ||||||||
Diversified Telecommunication Services – 1.3% | ||||||||
302,222 | Qwest Corp. (b) | 6.88% | 10/01/54 | 7,147,550 | ||||
134,426 | Qwest Corp. (b) | 7.00% | 02/01/56 | 3,359,306 | ||||
135,804 | Qwest Corp. | 6.50% | 09/01/56 | 2,860,032 | ||||
200,000 | Qwest Corp. | 6.75% | 06/15/57 | 4,378,000 | ||||
17,744,888 | ||||||||
Electric Utilities – 0.3% | ||||||||
73,257 | PPL Capital Funding, Inc., Series B | 5.90% | 04/30/73 | 1,844,611 | ||||
59,233 | Southern (The) Co. | 6.25% | 10/15/75 | 1,551,313 | ||||
3,395,924 | ||||||||
Equity Real Estate Investment Trusts – 1.4% | ||||||||
150,000 | Colony Capital, Inc., Series E (b) | 8.75% | (a) | 3,849,000 | ||||
193,100 | Farmland Partners, Inc., Series B, steps up 10/01/24 to 10.00% (e) | 6.00% | (a) | 4,593,849 | ||||
91,002 | Global Net Lease, Inc., Series A | 7.25% | (a) | 2,143,097 | ||||
114,430 | Urstadt Biddle Properties, Inc., Series H (b) | 6.25% | (a) | 2,771,495 | ||||
250,000 | VEREIT, Inc., Series F (b) | 6.70% | (a) | 6,285,000 | ||||
19,642,441 | ||||||||
Food Products – 2.6% | ||||||||
824,835 | CHS, Inc., Series 2 (b) (c) | 7.10% | (a) | 21,627,174 | ||||
546,059 | CHS, Inc., Series 3 (b) (c) | 6.75% | (a) | 13,842,595 | ||||
35,469,769 | ||||||||
Insurance – 3.9% | ||||||||
54,323 | Allstate Corp., Series E | 6.63% | (a) | 1,378,174 | ||||
193,648 | AmTrust Financial Services, Inc. | 7.25% | 06/15/55 | 3,049,956 | ||||
210,480 | AmTrust Financial Services, Inc. | 7.50% | 09/15/55 | 3,340,318 | ||||
33,401 | AmTrust Financial Services, Inc., Series F | 6.95% | (a) | 287,583 | ||||
59,196 | Aspen Insurance Holdings Ltd. | 5.63% | (a) | 1,382,227 | ||||
552,385 | Delphi Financial Group, Inc., 3 Mo. LIBOR + 3.19% (b) (d) | 5.81% | 05/15/37 | 12,773,903 | ||||
428,412 | Enstar Group Ltd., Series D (b) (c) | 7.00% | (a) | 10,898,801 | ||||
158,193 | Global Indemnity Ltd. (b) | 7.75% | 08/15/45 | 3,939,006 | ||||
190,380 | Global Indemnity Ltd. (b) | 7.88% | 04/15/47 | 4,890,862 | ||||
121,506 | Maiden Holdings North America Ltd. | 7.75% | 12/01/43 | 2,217,484 | ||||
19,685 | National General Holdings Corp. | 7.63% | 09/15/55 | 479,330 | ||||
133,133 | National General Holdings Corp., Series C | 7.50% | (a) | 2,640,027 | ||||
107,835 | PartnerRe Ltd., Series G (b) | 6.50% | (a) | 2,787,535 |
Shares | Description | Stated Rate | Stated Maturity | Value | ||||
$25 PAR PREFERRED SECURITIES (Continued) | ||||||||
Insurance (Continued) | ||||||||
225,000 | Phoenix Cos., Inc. | 7.45% | 01/15/32 | $3,667,500 | ||||
53,732,706 | ||||||||
Mortgage Real Estate Investment Trusts – 1.6% | ||||||||
327,579 | Annaly Capital Management, Inc., Series F (b) (c) | 6.95% | (a) | 8,271,370 | ||||
121,000 | Invesco Mortgage Capital, Inc., Series B (b) (c) | 7.75% | (a) | 3,086,710 | ||||
207,000 | Two Harbors Investment Corp., Series B (b) (c) | 7.63% | (a) | 5,150,160 | ||||
220,000 | Two Harbors Investment Corp., Series C (b) (c) | 7.25% | (a) | 5,291,000 | ||||
21,799,240 | ||||||||
Multi-Utilities – 2.9% | ||||||||
221,976 | Algonquin Power & Utilities Corp. (b) (c) | 6.88% | 10/17/78 | 5,935,638 | ||||
124,764 | CMS Energy Corp. (b) | 5.88% | 10/15/78 | 3,245,423 | ||||
732,571 | Integrys Holding, Inc. (b) (c) | 6.00% | 08/01/73 | 18,552,361 | ||||
350,000 | Just Energy Group, Inc., Series A (c) | 8.50% | (a) | 6,667,500 | ||||
200,000 | NiSource, Inc., Series B (b) (c) | 6.50% | (a) | 5,476,000 | ||||
39,876,922 | ||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||
148,780 | Enbridge, Inc., Series B (b) (c) | 6.38% | 04/15/78 | 3,749,256 | ||||
15,235 | Energy Transfer Operating L.P., Series C (c) | 7.38% | (a) | 365,487 | ||||
56,761 | Energy Transfer Operating L.P., Series D (c) | 7.63% | (a) | 1,404,835 | ||||
5,519,578 | ||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
379,159 | New York Community Bancorp, Inc., Series A (b) (c) | 6.38% | (a) | 9,710,262 | ||||
Wireless Telecommunication Services – 0.5% | ||||||||
262,545 | United States Cellular Corp. (b) | 7.25% | 12/01/64 | 6,616,134 | ||||
Total $25 Par Preferred Securities | 279,795,214 | |||||||
(Cost $286,026,383) | ||||||||
$100 PAR PREFERRED SECURITIES – 3.7% | ||||||||
Banks – 3.7% | ||||||||
80,000 | AgriBank FCB (c) (f) | 6.88% | (a) | 8,360,000 | ||||
179,000 | CoBank ACB, Series F (b) (c) (f) | 6.25% | (a) | 18,437,000 | ||||
82,220 | CoBank ACB, Series G (b) (f) | 6.13% | (a) | 8,328,886 | ||||
54,250 | CoBank ACB, Series H (b) (c) (f) | 6.20% | (a) | 5,452,125 | ||||
102,000 | Farm Credit Bank of Texas (b) (c) (g) | 6.75% | (a) | 10,659,000 | ||||
Total $100 Par Preferred Securities | 51,237,011 | |||||||
(Cost $50,893,846) | ||||||||
$1,000 PAR PREFERRED SECURITIES – 5.4% | ||||||||
Banks – 3.9% | ||||||||
3,557 | CoBank ACB, 3 Mo. LIBOR + 1.18% (d) (g) | 3.79% | (a) | 2,151,985 | ||||
30,859 | Farm Credit Bank of Texas, Series 1 (b) (f) | 10.00% | (a) | 34,562,080 | ||||
15,364 | Sovereign Real Estate Investment Trust (g) | 12.00% | (a) | 17,059,341 | ||||
53,773,406 | ||||||||
Diversified Financial Services – 0.9% | ||||||||
12,000 | Compeer Financial ACA (b) (c) (g) | 6.75% | (a) | 12,300,000 | ||||
Oil, Gas & Consumable Fuels – 0.6% | ||||||||
8,500 | Kinder Morgan GP, Inc., 3 Mo. LIBOR + 3.90% (d) (g) | 6.54% | 08/18/57 | 7,926,479 | ||||
Total $1,000 Par Preferred Securities | 73,999,885 | |||||||
(Cost $80,128,868) |
Shares | Description | Stated Rate | Stated Maturity | Value | ||||
$1,000,000 PAR PREFERRED SECURITIES – 1.1% | ||||||||
Banks – 1.1% | ||||||||
12 | FT Real Estate Securities Co., Inc. (g) (h) (i) | 9.50% | (a) | $15,137,616 | ||||
(Cost $15,990,000) | ||||||||
Par Amount | Description | Stated Rate | Stated Maturity | Value | ||||
CAPITAL PREFERRED SECURITIES – 109.2% | ||||||||
Automobiles – 1.4% | ||||||||
$4,700,000 | General Motors Financial Co., Inc., Series A (c) | 5.75% | (a) | 4,037,183 | ||||
16,400,000 | General Motors Financial Co., Inc., Series B (b) (c) | 6.50% | (a) | 14,538,190 | ||||
18,575,373 | ||||||||
Banks – 54.6% | ||||||||
16,300,000 | Australia & New Zealand Banking Group Ltd. (b) (c) (j) (k) | 6.75% | (a) | 16,845,561 | ||||
6,800,000 | Banco Bilbao Vizcaya Argentaria S.A. (c) (k) | 6.13% | (a) | 5,999,096 | ||||
8,000,000 | Banco Mercantil del Norte S.A. (c) (j) (k) | 7.63% | (a) | 7,976,000 | ||||
12,200,000 | Banco Santander S.A. (b) (c) (k) | 6.38% | (a) | 11,986,768 | ||||
14,426,000 | Bank of America Corp., Series DD (b) (c) | 6.30% | (a) | 15,547,189 | ||||
7,900,000 | Bank of America Corp., Series X (b) (c) | 6.25% | (a) | 8,325,297 | ||||
23,867,000 | Bank of America Corp., Series Z (b) (c) | 6.50% | (a) | 25,715,380 | ||||
40,000 | Barclays Bank PLC (j) | 10.18% | 06/12/21 | 45,315 | ||||
5,200,000 | Barclays PLC (c) (k) | 7.75% | (a) | 5,189,158 | ||||
35,136,000 | Barclays PLC (b) (c) (k) | 7.88% | (a) | 36,672,322 | ||||
2,000,000 | BNP Paribas S.A. (c) (j) (k) | 7.38% | (a) | 2,079,560 | ||||
29,774,000 | BNP Paribas S.A. (b) (c) (j) (k) | 7.63% | (a) | 31,361,401 | ||||
9,500,000 | BPCE S.A. (b) (c) (j) | 12.50% | (a) | 10,046,250 | ||||
6,000,000 | Citigroup, Inc. (b) (c) | 5.95% | (a) | 5,985,000 | ||||
5,000,000 | Citigroup, Inc., Series O (b) (c) | 5.88% | (a) | 5,039,225 | ||||
25,000,000 | Citigroup, Inc., Series R (b) (c) | 6.13% | (a) | 25,389,625 | ||||
3,500,000 | Citizens Financial Group, Inc., Series C (b) (c) | 6.38% | (a) | 3,445,663 | ||||
25,000,000 | CoBank ACB, Series I (b) (c) (f) | 6.25% | (a) | 25,906,250 | ||||
11,125,000 | Cooperatieve Rabobank UA (b) (c) (j) | 11.00% | (a) | 11,514,375 | ||||
24,600,000 | Credit Agricole S.A. (b) (c) (j) (k) | 7.88% | (a) | 25,859,815 | ||||
32,500,000 | Credit Agricole S.A. (b) (c) (j) (k) | 8.13% | (a) | 35,305,400 | ||||
14,180,000 | Danske Bank A.S. (b) (c) (k) | 6.13% | (a) | 12,496,125 | ||||
3,450,000 | Farm Credit Bank of Texas, Series 3 (b) (c) (j) | 6.20% | (a) | 3,384,347 | ||||
16,500,000 | HSBC Holdings PLC (b) (c) (k) | 6.38% | (a) | 16,586,212 | ||||
3,000,000 | HSBC Holdings PLC (c) (k) | 6.38% | (a) | 2,950,005 | ||||
9,400,000 | HSBC Holdings PLC (b) (c) (k) | 6.88% | (a) | 9,782,768 | ||||
13,920,000 | ING Groep N.V. (b) (c) (k) | 6.50% | (a) | 13,617,936 | ||||
10,000,000 | ING Groep N.V. (b) (c) (k) | 6.88% | (a) | 10,254,110 | ||||
27,300,000 | Intesa Sanpaolo S.p.A. (b) (c) (j) (k) | 7.70% | (a) | 25,041,744 | ||||
8,384,000 | JPMorgan Chase & Co., Series I, 3 Mo. LIBOR + 3.47% (b) (d) | 6.22% | (a) | 8,446,670 | ||||
20,000,000 | JPMorgan Chase & Co., Series S (b) (c) | 6.75% | (a) | 21,572,900 | ||||
5,580,000 | JPMorgan Chase & Co., Series V (b) (c) | 5.00% | (a) | 5,559,075 | ||||
18,000,000 | Lloyds Bank PLC (b) (c) (j) | 12.00% | (a) | 21,715,434 | ||||
18,150,000 | Lloyds Bank PLC (b) (c) | 12.00% | (a) | 21,896,396 | ||||
27,313,000 | Lloyds Banking Group PLC (b) (c) (k) | 7.50% | (a) | 27,859,260 | ||||
12,000,000 | Lloyds Banking Group PLC (b) (c) (k) | 7.50% | (a) | 12,167,700 | ||||
5,363,000 | Nordea Bank Abp (c) (k) | 6.13% | (a) | 5,126,143 | ||||
1,600,000 | Nordea Bank Abp (c) (j) (k) | 6.13% | (a) | 1,529,336 | ||||
23,400,000 | Royal Bank of Scotland Group PLC (b) (c) (k) | 8.00% | (a) | 24,534,900 | ||||
31,050,000 | Royal Bank of Scotland Group PLC (b) (c) (k) | 8.63% | (a) | 33,136,560 | ||||
34,600,000 | Societe Generale S.A. (b) (c) (j) (k) | 7.38% | (a) | 35,828,300 | ||||
2,000,000 | Societe Generale S.A. (c) (k) | 7.38% | (a) | 2,071,000 | ||||
15,250,000 | Societe Generale S.A. (b) (c) (j) (k) | 7.88% | (a) | 15,643,831 |
Par Amount | Description | Stated Rate | Stated Maturity | Value | ||||
CAPITAL PREFERRED SECURITIES (Continued) | ||||||||
Banks (Continued) | ||||||||
$65,000 | Standard Chartered PLC (c) | 7.01% | (a) | $67,125 | ||||
12,400,000 | Standard Chartered PLC (b) (c) (j) (k) | 7.50% | (a) | 12,927,000 | ||||
7,500,000 | Standard Chartered PLC (c) (j) (k) | 7.75% | (a) | 7,829,813 | ||||
825,000 | Standard Chartered PLC (c) (k) | 7.75% | (a) | 861,279 | ||||
3,400,000 | Swedbank AB (c) (k) | 6.00% | (a) | 3,402,118 | ||||
29,746,000 | UniCredit S.p.A. (b) (c) (k) | 8.00% | (a) | 27,318,250 | ||||
16,000,000 | UniCredit S.p.A. (b) (c) (j) | 5.86% | 06/19/32 | 14,342,352 | ||||
21,500,000 | Wells Fargo & Co., Series K, 3 Mo. LIBOR + 3.77% (b) (d) | 6.56% | (a) | 21,634,375 | ||||
12,670,000 | Zions Bancorp NA, Series J (b) (c) | 7.20% | (a) | 13,187,379 | ||||
749,005,093 | ||||||||
Capital Markets – 4.6% | ||||||||
5,100,000 | Credit Suisse Group AG (c) (j) (k) | 7.25% | (a) | 5,056,523 | ||||
17,079,000 | Credit Suisse Group AG (b) (c) (j) (k) | 7.50% | (a) | 18,163,107 | ||||
7,875,000 | Credit Suisse Group AG (c) (k) | 7.50% | (a) | 8,374,873 | ||||
12,000,000 | Credit Suisse Group AG (b) (c) (j) (k) | 7.50% | (a) | 12,250,020 | ||||
3,350,000 | UBS Group Funding Switzerland AG (c) (k) | 7.00% | (a) | 3,551,000 | ||||
15,000,000 | UBS Group Funding Switzerland AG (b) (c) (k) | 7.13% | (a) | 15,322,230 | ||||
62,717,753 | ||||||||
Consumer Finance – 0.4% | ||||||||
6,200,000 | American Express Co., Series C (b) (c) | 4.90% | (a) | 6,147,145 | ||||
Diversified Financial Services – 0.3% | ||||||||
3,904,000 | Voya Financial, Inc. (b) (c) | 5.65% | 05/15/53 | 3,796,640 | ||||
Diversified Telecommunication Services – 1.6% | ||||||||
20,000,000 | Koninklijke KPN N.V. (b) (c) (j) | 7.00% | 03/28/73 | 20,729,500 | ||||
1,000,000 | Koninklijke KPN N.V. (b) (c) | 7.00% | 03/28/73 | 1,036,475 | ||||
21,765,975 | ||||||||
Electric Utilities – 6.8% | ||||||||
40,086,000 | Emera, Inc., Series 16-A (b) (c) | 6.75% | 06/15/76 | 40,946,847 | ||||
42,128,000 | Enel S.p.A. (b) (c) (j) | 8.75% | 09/24/73 | 45,287,600 | ||||
6,500,000 | Southern (The) Co., Series B (b) (c) | 5.50% | 03/15/57 | 6,470,360 | ||||
92,704,807 | ||||||||
Energy Equipment & Services – 1.8% | ||||||||
24,800,000 | Transcanada Trust, Series 16-A (b) (c) | 5.88% | 08/15/76 | 24,246,340 | ||||
Food Products – 4.9% | ||||||||
9,000,000 | Dairy Farmers of America, Inc. (b) (g) | 7.13% | (a) | 8,405,775 | ||||
14,488,000 | Land O’Lakes Capital Trust I (b) (g) | 7.45% | 03/15/28 | 15,302,950 | ||||
10,000,000 | Land O’Lakes, Inc. (b) (j) | 7.25% | (a) | 9,875,000 | ||||
33,000,000 | Land O’Lakes, Inc. (b) (j) | 8.00% | (a) | 34,237,500 | ||||
67,821,225 | ||||||||
Independent Power and Renewable Electricity Producers – 1.6% | ||||||||
9,850,000 | AES Gener S.A. (c) (j) | 8.38% | 12/18/73 | 10,091,325 | ||||
12,150,000 | AES Gener S.A. (c) | 8.38% | 12/18/73 | 12,447,675 | ||||
22,539,000 | ||||||||
Insurance – 20.8% | ||||||||
9,600,000 | AG Insurance S.A. (b) (c) | 6.75% | (a) | 9,625,661 | ||||
5,350,000 | American International Group, Inc., Series A-9 (b) (c) | 5.75% | 04/01/48 | 5,010,141 | ||||
8,918,000 | Asahi Mutual Life Insurance Co. (c) | 6.50% | (a) | 8,739,301 | ||||
3,839,000 | Asahi Mutual Life Insurance Co. (b) (c) | 7.25% | (a) | 3,887,966 |
Par Amount | Description | Stated Rate | Stated Maturity | Value | ||||
CAPITAL PREFERRED SECURITIES (Continued) | ||||||||
Insurance (Continued) | ||||||||
$16,975,000 | Assurant, Inc. (b) (c) | 7.00% | 03/27/48 | $16,405,913 | ||||
39,700,000 | Catlin Insurance Co., Ltd., 3 Mo. LIBOR + 2.98% (b) (d) (j) | 5.74% | (a) | 38,269,807 | ||||
10,600,000 | CNP Assurances (b) (c) | 6.88% | (a) | 10,761,979 | ||||
12,500,000 | Dai-Ichi Life Insurance (The) Co., Ltd. (b) (c) (j) | 7.25% | (a) | 13,415,250 | ||||
8,134,000 | Everest Reinsurance Holdings, Inc., 3 Mo. LIBOR + 2.39% (b) (d) | 5.00% | 05/15/37 | 7,169,674 | ||||
15,300,000 | Fortegra Financial Corp. (c) (g) | 8.50% | 10/15/57 | 15,838,943 | ||||
1,000,000 | Fukoku Mutual Life Insurance Co. (c) | 6.50% | (a) | 1,062,520 | ||||
9,400,000 | Hartford Financial Services Group (The), Inc., 3 Mo. LIBOR + 2.13% (b) (d) (j) | 4.74% | 02/12/47 | 8,050,865 | ||||
25,616,000 | La Mondiale SAM (b) (c) | 7.63% | (a) | 25,887,683 | ||||
12,665,000 | Liberty Mutual Group, Inc. (b) (j) | 7.80% | 03/15/37 | 14,313,920 | ||||
2,000,000 | Liberty Mutual Group, Inc. (b) (c) | 10.75% | 06/15/58 | 2,902,950 | ||||
5,000,000 | Liberty Mutual Group, Inc., 3 Mo. LIBOR + 2.91% (b) (d) (j) | 5.69% | 03/15/37 | 4,757,225 | ||||
25,000,000 | Mitsui Sumitomo Insurance Co., Ltd. (b) (c) (j) | 7.00% | 03/15/72 | 26,900,625 | ||||
3,000,000 | Nationwide Financial Services Capital Trust (b) (f) | 7.90% | 03/01/37 | 3,158,134 | ||||
9,800,000 | Nationwide Financial Services, Inc. (b) | 6.75% | 05/15/37 | 10,010,455 | ||||
24,300,000 | QBE Insurance Group Ltd. (b) (c) (j) | 7.50% | 11/24/43 | 26,158,342 | ||||
20,250,000 | QBE Insurance Group Ltd. (b) (c) | 6.75% | 12/02/44 | 21,064,556 | ||||
8,130,000 | Sumitomo Life Insurance Co. (b) (c) (j) | 6.50% | 09/20/73 | 8,761,904 | ||||
3,800,000 | VIVAT N.V. (c) | 6.25% | (a) | 3,742,240 | ||||
285,896,054 | ||||||||
Metals & Mining – 2.3% | ||||||||
28,500,000 | BHP Billiton Finance USA Ltd. (b) (c) (j) | 6.75% | 10/19/75 | 30,928,913 | ||||
Multi-Utilities – 0.8% | ||||||||
5,150,000 | CenterPoint Energy, Inc., Series A (b) (c) | 6.13% | (a) | 5,154,300 | ||||
5,500,000 | NiSource, Inc. (b) (c) (j) | 5.65% | (a) | 5,302,908 | ||||
10,457,208 | ||||||||
Oil, Gas & Consumable Fuels – 5.9% | ||||||||
8,000,000 | DCP Midstream L.P., Series A (b) (c) | 7.38% | (a) | 7,571,800 | ||||
1,465,000 | DCP Midstream Operating L.P. (c) (j) | 5.85% | 05/21/43 | 1,267,225 | ||||
28,243,000 | Enbridge Energy Partners L.P., 3 Mo. LIBOR + 3.80% (b) (d) | 6.59% | 10/01/37 | 28,384,215 | ||||
5,400,000 | Enbridge, Inc. (b) (c) | 5.50% | 07/15/77 | 4,929,824 | ||||
14,700,000 | Enbridge, Inc. (b) (c) | 6.25% | 03/01/78 | 13,968,649 | ||||
7,000,000 | Enbridge, Inc., Series 16-A (b) (c) | 6.00% | 01/15/77 | 6,720,203 | ||||
20,700,000 | Energy Transfer Operating L.P., 3 Mo. LIBOR + 3.02% (b) (d) | 5.56% | 11/01/66 | 16,767,000 | ||||
2,000,000 | Enterprise Products Operating LLC, 3 Mo. LIBOR + 2.78% (d) | 5.52% | 06/01/67 | 1,840,000 | ||||
81,448,916 | ||||||||
Transportation Infrastructure – 1.4% | ||||||||
19,817,000 | AerCap Global Aviation Trust (b) (c) (j) | 6.50% | 06/15/45 | 19,337,825 | ||||
Total Capital Preferred Securities | 1,497,388,267 | |||||||
(Cost $1,539,377,729) |
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES – 0.7% | ||||||||
Insurance – 0.7% | ||||||||
$10,000,000 | AmTrust Financial Services, Inc. (b) | 6.13% | 08/15/23 | $8,808,786 | ||||
(Cost $9,967,495) |
Total Investments – 140.5% |
1,926,366,779 | ||
(Cost $1,982,384,321) (l) | |||
Outstanding Loan – (42.7)% |
(585,000,000) | ||
Net Other Assets and Liabilities – 2.2% |
30,087,648 | ||
Net Assets – 100.0% |
$1,371,454,427 |
Counterparty | Floating Rate (1) | Expiration Date | Notional Amount | Fixed Rate (1) | Unrealized Appreciation (Depreciation)/ Value | |||||
Bank of Nova Scotia | 1 month LIBOR | 01/23/25 | $165,000,000 | 1.786% | $5,782,970 |
(1) | The Fund pays the fixed rate and receives the floating rate. The floating rate on January 31, 2019 was 2.512%. |
(a) | Perpetual maturity. |
(b) | All or a portion of this security serves as collateral on the outstanding loan. |
(c) | Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at January 31, 2019. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. |
(d) | Floating rate security. |
(e) | Step-up security. A security where the coupon increases or steps up at a predetermined date. |
(f) | Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be illiquid by Stonebridge Advisors LLC (the “Sub-Advisor”). |
(g) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C - Restricted Securities in the Notes to Portfolio of Investments). |
(h) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures adopted by the Fund’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940, as amended. At January 31, 2019, securities noted as such are valued at $15,137,616 or 1.1% of net assets. |
(i) | This security’s value was determined using significant unobservable inputs (see Note 2A - Portfolio Valuation in the Notes to Portfolio of Investments). |
(j) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be liquid by the Sub-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, 2019, securities noted as such amounted to $632,431,218 or 46.1% of net assets. |
(k) | 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, 2019, securities noted as such amounted to $542,957,224 or 27.8% of managed assets. Of these securities, 1.5% originated in emerging markets, and 98.5% originated in foreign markets. |
(l) | Aggregate cost for financial reporting purposes approximates the aggregate cost for federal income tax purposes. As of January 31, 2019, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $28,144,872 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $78,379,444. The net unrealized depreciation was $50,234,572. The amounts presented are inclusive of derivative contracts. |
Total Value at 1/31/2019 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
$25 Par Preferred Securities: | ||||
Insurance | $ 53,732,706 | $ 37,003,720 | $ 16,728,986 | $ — |
Multi-Utilities | 39,876,922 | 21,324,561 | 18,552,361 | — |
Other industry categories* | 186,185,586 | 186,185,586 | — | — |
$100 Par Preferred Securities* | 51,237,011 | — | 51,237,011 | — |
$1,000 Par Preferred Securities* | 73,999,885 | — | 73,999,885 | — |
$1,000,000 Par Preferred Securities* | 15,137,616 | — | — | 15,137,616 |
Capital Preferred Securities* | 1,497,388,267 | — | 1,497,388,267 | — |
Corporate Bonds and Notes* | 8,808,786 | — | 8,808,786 | — |
Total Investments | 1,926,366,779 | 244,513,867 | 1,666,715,296 | 15,137,616 |
Interest Rate Swap Agreement | 5,782,970 | — | 5,782,970 | — |
Total | $ 1,932,149,749 | $ 244,513,867 | $ 1,672,498,266 | $ 15,137,616 |
* | See Portfolio of Investments for industry breakout. |
Beginning Balance at October 31, 2018 | |
$1,000,000 Par Preferred Securities | $14,552,328 |
Net Realized Gain (Loss) | — |
Net Change in Unrealized Appreciation/Depreciation | 585,288 |
Purchases | — |
Sales | — |
Transfers In | — |
Transfers Out | — |
Ending Balance at January 31, 2019 | |
$1,000,000 Par Preferred Securities | 15,137,616 |
Total Level 3 holdings | $15,137,616 |
1) | benchmark yields; |
2) | reported trades; |
3) | broker/dealer quotes; |
4) | issuer spreads; |
5) | benchmark securities; |
6) | bids and offers; and |
7) | reference data including market research publications. |
1) | the type of security; |
2) | the size of the holding; |
3) | the initial cost of the security; |
4) | transactions in comparable securities; |
5) | price quotes from dealers and/or third-party pricing services; |
6) | relationships among various securities; |
7) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
8) | an analysis of the issuer’s financial statements; and |
9) | the existence of merger proposals or tender offers that might affect the value of the security. |
1) | the value of similar foreign securities traded on other foreign markets; |
2) | ADR trading of similar securities; |
3) | closed-end fund or exchange-traded fund trading of similar securities; |
4) | foreign currency exchange activity; |
5) | the trading prices of financial products that are tied to baskets of foreign securities; |
6) | factors relating to the event that precipitated the pricing problem; |
7) | whether the event is likely to recur; and |
8) | whether the effects of the event are isolated or whether they affect entire markets, countries or regions. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Security | Acquisition Date | Par Amount/Shares | Current Price | Carrying Cost | Value | % of Net Assets | ||
CoBank ACB, 3.79% | 3/29/18 | 3,557 | $605.00 | $2,409,868 | $2,151,985 | 0.16% | ||
Compeer Financial ACA, 6.75% | 5/29/13 - 7/31/15 | 12,000 | 1,025.00 | 12,105,000 | 12,300,000 | 0.90 | ||
Dairy Farmers of America, Inc., 7.13% | 9/15/16 | 9,000,000 | 93.40 | 9,000,000 | 8,405,775 | 0.61 | ||
Farm Credit Bank of Texas, 6.75% | 7/16/13 - 1/29/19 | 102,000 | 104.50 | 10,226,500 | 10,659,000 | 0.78 | ||
Fortegra Financial Corp., 8.50%, 10/15/57 | 10/12/17 - 3/12/18 | $15,300,000 | 103.52 | 15,344,485 | 15,838,943 | 1.15 | ||
FT Real Estate Securities Co., Inc., 9.50% | 6/15/16 | 12 | 1,641,468.00 | 15,990,000 | 15,137,616 | 1.10 | ||
Kinder Morgan GP, Inc., 6.54%,08/18/57 | 3/21/17 - 6/20/17 | 8,500 | 932.53 | 7,765,000 | 7,926,479 | 0.58 | ||
Land O’Lakes Capital Trust I, 7.45%, 03/15/28 | 6/6/14 - 7/7/17 | $14,488,000 | 105.63 | 15,081,158 | 15,302,950 | 1.12 | ||
Sovereign Real Estate Investment Trust, 12.00% | 6/11/13 - 3/22/16 | 15,364 | 1,110.35 | 20,231,885 | 17,059,341 | 1.24 | ||
$108,153,896 | $104,782,089 | 7.64% |
Item 2. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | First Trust Intermediate Duration Preferred & Income Fund |
By (Signature and Title)* | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | March 25, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | March 25, 2019 |
By (Signature and Title)* | /s/ Donald P. Swade | |||
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | March 25, 2019 |
* Print the name and title of each signing officer under his or her signature.
.