First Trust Specialty Finance and Financial Opportunities Fund (FGB)
  • 2024 Estimated Capital Gain Distributions
    Please note that none of our First Trust Closed-End Funds are expected to pay a special long-term capital gain distribution in December. Also, none of the First Trust Closed-End Funds are expected to pay any special short-term capital gain distributions in December. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - First Trust Specialty Finance and Financial Opportunities Fund (the "Fund") is a diversified, closed-end management investment company. The primary investment objective of the Fund is to seek a high level of current income. As a secondary objective, the Fund seeks an attractive total return. The Fund pursues its investment objectives by investing, under normal market conditions, at least 80% of its Managed Assets in a portfolio of securities of specialty finance and other financial companies that the Fund's Sub-Advisor believes offer attractive opportunities for income and capital appreciation. Under normal market conditions, the Fund concentrates its investments in securities of companies within industries in the financial sector. "Managed Assets" means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings.
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Fund Overview
TickerFGB
Fund TypeFinance
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorConfluence Investment Management LLC
Investor Servicing AgentComputershare Trust Company, N.A.
CUSIP33733G109
Fiscal Year-End11/30
ExchangeNYSE
Inception5/25/2007
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 11/20/2024)
Closing NAV1$4.36
Closing Market Price2$4.24
Discount to Net Asset Value (NAV)2.75%
Total Managed Assets$71,304,234
Common Shares Outstanding14,367,591
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.1000
Distribution Rate49.43%
Daily Volume45,339
Average 30-Day Daily Volume58,651
Closing Market Price 52-Week High/Low$4.25 / $3.27
Closing NAV 52-Week High/Low$4.50 / $3.91
Expense Ratios (as of 5/31/2024)
Annual ExpensesPercent of
Net Assets		Percent of
Managed
Assets
Management Fees1.14%1.00%
Other Expenses
0.51%
0.45%
Total Operating Expenses1.65%1.45%
 
Leverage Costs1.06%0.92%
 
Total Annual Expenses2.71%2.37%
 
Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
Asset Type Breakdown (as of 8/31/2024)6
  Asset Percent
Common Stocks - Business Development Companies 92.15%
Common Stocks 7.85%
Market Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Leverage Information (as of 11/20/2024)5
Total Net Assets with Leverage$71,304,234
Amount Attributable to Common Shares$62,704,234
Amount Attributable to Other Borrowings$8,600,000
Leverage (% of Total Adjusted Net Assets)12.06%
Top 10 Holdings (as of 8/31/2024)6
Holding Percent
Hercules Capital Inc 9.18%
Main Street Capital Corp 7.96%
Blackstone Secured Lending Fund 7.00%
New Mountain Finance Corp 6.31%
Sixth Street Specialty Lending Inc 6.07%
Barings BDC Inc 5.69%
Golub Capital BDC Inc 5.62%
Blue Owl Capital Corp III 5.36%
Ares Capital Corp 3.82%
Annaly Capital Management Inc 3.80%
Industry Breakdown (as of 8/31/2024)6
  Industry Percent
Capital Markets 92.15%
Mortgage Real Estate Investment Trusts (REITs) 3.80%
Financial Services 3.11%
Banks 0.59%
Insurance 0.35%
Performance (as of 10/31/2024)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception7
Fund Performance *
Net Asset Value (NAV) -0.92% 11.96% 26.66% 7.95% 3.25% 4.30% 1.78%
Market Price 6.16% 23.15% 47.61% 9.22% 1.20% 3.45% 1.23%

*Total return is the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in the NAV and Market Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. Past performance is not indicative of future results.

Footnotes
1 The fund's NAV is calculated by dividing the value of all the fund's assets, less all liabilities, by the total number of common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
4 Distribution rates are calculated by annualizing the most recent distribution paid or declared through today's date and then dividing by the most recent market price. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
5 Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increase yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
6 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-PORT Part F) that are based on trade date recording of security transactions. Holdings are subject to change.
7 Inception Date is 5/25/2007

Risk Considerations

Risks are inherent in all investing. Certain risks applicable to the Fund are identified below, which includes the risk that you could lose some or all of your investment in the Fund. The principal risks of investing in the Fund are spelled out in the Fund's annual shareholder reports. The order of the below risk factors does not indicate the significance of any particular risk factor. The Fund also files reports, proxy statements and other information that is available for review.

Investment return and market value of an investment in the fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain fund investments as well as fund performance. The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease. Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity.

The fund invests in business development companies (BDCs) which may be subject to a high degree of risks, including management's ability to meet the BDC's investment objective, and to manage the BDC's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding a BDC or its underlying investments change.

Investing in real estate investment trusts (REITs) involves certain unique risks in addition to investing in the real estate industry in general. REITs are subject to interest rate risk and the risk of default by lessees or borrowers.

The fund may invest in a variety of other mortgage-related securities. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-related securities are subject to the risk that borrowers may pay off their mortgagees sooner than expected, particularly when interest rates decline. This can reduce the fund's returns. The fund's investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.

Because the fund is concentrated in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, availability and cost of capital funds, and competition.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

The risks of investing in the fund are spelled out in the prospectus, shareholder report and other regulatory filings.

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Not FDIC Insured • Not Bank Guaranteed • May Lose Value