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Form N-CSRS First Trust Intermediate For: Apr 30

July 1, 2022 12:12 PM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

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: April 30, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. Reports to Stockholders.

(a)The Report to Shareholders is attached herewith.

 

First Trust
Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Report
For the Six Months Ended
April 30, 2022

Table of Contents
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Report
April 30, 2022
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and/or Stonebridge Advisors LLC (“Stonebridge” or the “Sub-Advisor”) and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Trust Intermediate Duration Preferred & Income Fund (the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment objectives. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund. See “Principal Risks” in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and common share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on the Fund’s web page at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.
By reading the portfolio commentary by the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of First Trust and Stonebridge are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.

Shareholder Letter
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Letter from the Chairman and CEO
April 30, 2022
Dear Shareholders,
First Trust is pleased to provide you with the semi-annual report for the First Trust Intermediate Duration Preferred & Income Fund (the “Fund”), which contains detailed information about the Fund for the six months ended April 30, 2022.
A couple of famous financial industry quotes came to mind recently as I was sizing up the current business climate: “There’s no such thing as a free lunch” and “Don’t fight the Fed!” It seems that for some, the trillions of dollars of financial stimulus funneled into U.S. households and businesses by the Federal government and its agencies to help mitigate the fallout stemming from the coronavirus (“COVID-19”) pandemic, which commenced sometime around February 2020, was for all intents and purposes “free money.” It was not free. From the close of February 2020 through March 2022, the Federal Reserve (the “Fed”) expanded the U.S. money supply, known as M2, by 41% to $21.81 trillion to boost liquidity in the financial system. Normally, M2 grows around 6.0% on a year-over-year basis. When you factor in that all this new capital was accompanied by a breakdown of the global supply chain, there is little wonder why inflation is rampant.
One of the more common definitions of inflation is too many dollars chasing too few goods. The biggest downside to the supply chain bottlenecks, such as the severe backup of container ships at some U.S. ports, is that they have markedly reduced the flow of imported goods to retailers. The Fed has been signaling to Americans and the rest of the globe that, after many years of artificially low interest rates, tighter monetary policy will likely rule the day for the foreseeable future. Higher interest rates make borrowing capital more expensive and that should slow consumption over time, which, in turn, should bring down inflation. Don’t fight the Fed is code for don’t bet against the Fed, in my opinion. Stay tuned!
The primary job of the Fed is price stability. Its standard inflation target rate is 2.0%. The most recent Consumer Price Index release showed that prices were up 8.3% on a year-over-year basis as of April 30, 2022, according to data from the U.S. Bureau of Labor Statistics. While down from 8.5% the prior month, it is clearly elevated and that means the Fed has some work to do to with respect to mitigating inflation. The war between Russia and Ukraine is making the Fed’s job even tougher, particularly in the areas of food and energy. Rising costs and potential shortages could become even bigger if the COVID-19 outbreak in China grows. These are important events to monitor. Fed Chairman Jerome Powell has stated that the Fed is poised to raise the Federal Funds target rate (upper bound) by 50 basis points at each of its next two meetings (set for June and July), which would take the rate up to 2.00%. Data from CME Group indicates that current market pricing has the rate rising to 2.75% or 3.00% by year-end.
Securities markets do not go up in a straight line and they do not just go up year in and year out. In fact, what we have witnessed over the past couple of decades are often referred to as boom and bust cycles. Thankfully, it has ended up more boom than bust. Simply put, investors, not traders of the market, need to be willing to take the bad with the good. As the various stages of an economic cycle come and go (expansion to contraction), the markets tend to reprice securities to reflect the current narrative. In other words, we believe the markets essentially heal themselves − if you let them. That is an accurate depiction of how the markets have behaved so far in 2022, in my opinion. In response to a softening economy, the stock and bond markets have experienced some serious downside through the first four months of this year, as measured by the broader market indices. As of today, Brian Wesbury, Chief Economist at First Trust, is not forecasting a recession for the U.S. in 2022 or 2023. Whether he is proven right or wrong, we encourage investors to stay the course.
Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months.
Sincerely,
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 1

First Trust Intermediate Duration Preferred & Income Fund (FPF)
“AT A GLANCE”
As of April 30, 2022 (Unaudited)
Fund Statistics
Symbol on New York Stock Exchange FPF
Common Share Price $20.11
Common Share Net Asset Value (“NAV”) $21.40
Premium (Discount) to NAV (6.03)%
Net Assets Applicable to Common Shares $1,302,382,869
Current Distribution per Common Share(1) $0.1275
Current Annualized Distribution per Common Share $1.5300
Current Distribution Rate on Common Share Price(2) 7.61%
Current Distribution Rate on NAV(2) 7.15%
Common Share Price & NAV (weekly closing price)
  
 
Performance
      Average Annual
Total Returns
  6 Months
Ended
4/30/22
1 Year
Ended
4/30/22
5 Years
Ended
4/30/22
Inception
(5/23/13)
to 4/30/22
Fund Performance(3)        
NAV -11.30% -7.32% 4.69% 6.78%
Market Value -18.37% -13.29% 4.13% 5.51%
Index Performance        
ICE BofA US Investment Grade Institutional Capital Securities Index -7.82% -6.20% 3.84% 4.51%
Blended Index(4) -10.15% -8.15% 3.56% N/A
ICE BofA Fixed Rate Preferred Securities Index -11.70% -10.10% 2.39% 3.90%
Prior Blended Index -9.89% -8.16% 3.19% 4.19%
    
(1) Most recent distribution paid or declared through April 30, 2022. Subject to change in the future.
(2) Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of April 30, 2022. Subject to change in the future.
(3) Total return is based on 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 NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results.
(4) The Blended Index consists of a 30/30/30/10 blend of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Index is intended to reflect the proportional market cap of each segment of the preferred and hybrid securities market. The Prior Blended Index consists of a 50/50 blend of the ICE BofA Fixed Rate Preferred Securities Index and the ICE BofA U.S. Capital Securities Index. The Blended Index was added to reflect the diverse allocation of institutional preferred and hybrid securities in the Fund’s portfolio. The Blended Index and Prior Blended Index returns are calculated by using the monthly returns of the indices listed above during each period shown. At the beginning of each month the indices are rebalanced to a 30/30/30/10 and 50-50 ratio respectively to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. Since the ICE USD Contingent Capital Index had an inception date of December 31, 2013, the performance of the Blended Index is not available for all of the periods disclosed.
Page 2

First Trust Intermediate Duration Preferred & Income Fund (FPF)
“AT A GLANCE” (Continued)
As of April 30, 2022 (Unaudited)
Industry Classification % of Total
Investments
Banks 40.8%
Insurance 15.2
Capital Markets 9.7
Oil, Gas & Consumable Fuels 8.5
Diversified Financial Services 4.3
Food Products 4.2
Multi-Utilities 3.4
Electric Utilities 3.1
Trading Companies & Distributors 3.1
Consumer Finance 1.3
Transportation Infrastructure 1.2
Real Estate Management & Development 1.1
Energy Equipment & Services 1.1
Mortgage Real Estate Investment Trusts 1.1
Diversified Telecommunication Services 0.8
Wireless Telecommunication Services 0.4
Equity Real Estate Investment Trusts 0.3
Gas Utilities 0.2
Independent Power & Renewable Electricity Producers 0.2
Total 100.0%
    
Top Ten Holdings % of Total
Investments
Barclays PLC 2.7%
AerCap Holdings N.V. 2.1
Land O’Lakes, Inc. 1.8
Credit Agricole S.A. 1.6
Wells Fargo & Co., Series L 1.5
Enbridge, Inc. 1.5
Credit Suisse Group AG 1.5
Emera, Inc., Series 16-A 1.4
CoBank ACB, Series I 1.3
Nordea Bank Abp 1.3
Total 16.7%
Credit Quality(5) % of Total
Fixed-Income
Investments
A 0.5%
BBB+ 10.7
BBB 22.1
BBB- 25.4
BB+ 23.8
BB 9.3
BB- 3.6
B+ 0.2
B 0.8
Not Rated 3.6
Total 100.0%
    
Fund Allocation % of Net Assets
Capital Preferred Securities 113.7%
$25 Par Preferred Securities 21.1
$1,000 Par Preferred Securities 3.8
$100 Par Preferred Securities 3.3
Foreign Corporate Bonds and Notes 1.9
$1,000,000 Par Preferred Securities 1.2
Corporate Bonds and Notes 0.5
Exchange-Traded Funds 0.1
Reverse Repurchase Agreement (7.7)
Outstanding Loan (39.4)
Net Other Assets and Liabilities 1.5
Total 100.0%
 
(5) The credit quality and ratings information presented above reflect the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, Moody’s Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest rating is used.  Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
Page 3

Portfolio Commentary
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Report
April 30, 2022 (Unaudited)
Advisor
First Trust Advisors L.P. (“First Trust” or the “Advisor”) serves as the investment advisor to the First Trust Intermediate Duration Preferred & Income Fund (the “Fund”). First Trust is responsible for the ongoing monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.
Sub-Advisor
Stonebridge Advisors LLC (“Stonebridge” or the “Sub-Advisor”) is the sub-advisor to the Fund and is a registered investment advisor based in Wilton, Connecticut. Stonebridge specializes in the management of preferred and hybrid securities.
Stonebridge Advisors LLC Portfolio Management Team
Scott T. Fleming – Chief Executive Officer and President
Robert Wolf – Chief Investment Officer and Executive Vice President
Eric Weaver – Chief Strategist and Executive Vice President
Angelo Graci, CFA – Head of Credit Research and Executive Vice President
Commentary
Market Recap
The six-month period ended April 30, 2022 was negative for all segments of the preferred and hybrid securities market as interest rates moved sharply higher across the Treasury curve. The Federal Reserve (the “Fed”) became increasingly hawkish and increased the Federal Funds target rate for the first time since 2018 in order to combat the highest inflation readings in decades. In response to the Fed’s pivot, 2-Year Treasury yields moved higher by over 220 basis points (“bps”), reflecting the market’s increased expectations for front-end rate hikes. Meanwhile, the Treasury yield curve flattened significantly as 10-Year yields moved higher by 138 bps during the period, resulting in a flattened 2s/10s curve. Long duration and fixed rate securities suffered the deepest losses during the period, while variable rate and floating rate securities outperformed. For the fiscal year to date, investment grade (“IG”) institutional securities were the top performing segment of the preferred and hybrid securities market, returning -7.82%. Non-IG institutional securities were the second-best performing segment of the preferred and hybrid securities market, returning -8.14%, while European bank contingent convertible capital securities (“CoCos”), which are a subset of the institutional market, returned -8.98%. Finally, the exchange-traded $25 par retail market was by far the worst performer due to its longer duration profile and heavy outflows from passive exchange-traded funds that focus on that market segment. The $25 par retail market securities earned a return of -14.27% during the period.
Page 4

Portfolio Commentary (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Report
April 30, 2022 (Unaudited)
Performance Analysis
Performance
      Average Annual
Total Returns
  6 Months
Ended
4/30/22
1 Year
Ended
4/30/22
5 Years
Ended
4/30/22
Inception
(5/23/13)
to 4/30/22
Fund Performance*        
NAV -11.30% -7.32% 4.69% 6.78%
Market Value -18.37% -13.29% 4.13% 5.51%
Index Performance        
ICE BofA US Investment Grade Institutional Capital Securities Index -7.82% -6.20% 3.84% 4.51%
Blended Index** -10.15% -8.15% 3.56% N/A
ICE BofA Fixed Rate Preferred Securities Index -11.70% -10.10% 2.39% 3.90%
Prior Blended Index -9.89% -8.16% 3.19% 4.19%
 

Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.
The Fund has a practice of seeking to maintain a relatively stable monthly distribution, which may be changed at any time. The practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. However, the Advisor believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV. The monthly distribution rate began and ended the period at $0.1275 per share. At the $0.1275 per share monthly distribution rate, the annualized distribution rate at April 30, 2022 was 7.15% at NAV and 7.61% at market price. The final determination of the source and tax status of all 2022 distributions will be made after the end of 2022 and will be provided on Form 1099-DIV. The foregoing is not to be construed as tax advice. Please consult your tax advisor for further information regarding tax matters.
  
* Total return is based on 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 NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year.
** The Blended Index consists of a 30/30/30/10 blend of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, the ICE BofA US Investment Grade Institutional Capital Securities Index, the ICE USD Contingent Capital Index and the ICE BofA US High Yield Institutional Capital Securities Index. The Blended Index is intended to reflect the proportional market cap of each segment of the preferred and hybrid securities market. The Prior Blended Index consists of a 50/50 blend of the ICE BofA Fixed Rate Preferred Securities Index and the ICE BofA U.S. Capital Securities Index. The Blended Index was added to reflect the diverse allocation of institutional preferred and hybrid securities in the Fund’s portfolio. The Blended Index and Prior Blended Index returns are calculated by using the monthly returns of the indices listed above during each period shown. At the beginning of each month the indices are rebalanced to a 30/30/30/10 and 50-50 ratio respectively to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. Since the ICE USD Contingent Capital Index had an inception date of December 31, 2013, the performance of the Blended Index is not available for all of the periods disclosed.
Page 5

Portfolio Commentary (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Semi-Annual Report
April 30, 2022 (Unaudited)
For the six-month period ended April 30, 2022, the Fund produced a total return of -18.37% based on market price and -11.30% based on net asset value (“NAV”). This compares to a total return of -10.15% for the Fund’s Benchmark, which is 30/30/30/10 blend of the the ICE BofA Core Plus Fixed Rate Preferred Securities Index (“P0P4”), the ICE BofA Investment Grade Institutional Capital Securities Index (“CIPS”), the ICE USD Contingent Capital Index (“CDLR”), and the ICE BofA US High Yield Institutional Capital Securities Index (“HIPS”), respectively.
During the period, the Fund underperformed the Benchmark primarily due to its leverage, which detracted approximately -3.39% from performance. Higher front end interest rates also increased the cost of leverage for the Fund during the period. However, the Fund was able to maintain a stable monthly distribution of $0.1275 per share.
Aside from leverage, the Fund largely outperformed the Benchmark on an unlevered NAV basis. The largest positive contributor to the Fund’s performance relative to the Benchmark during the period was its defensive positioning in regard to rising interest rates. The Fund benefited from its overweight allocation to shorter duration securities (<5 years) and its underweight allocation to longer duration securities (5+ years). In particular, the Fund benefited significantly from its underweight allocation to fixed rate $25 par retail securities, which were down over 16% during the period. In the $1000 par institutional market, the Fund outperformed the Benchmark’s fixed rate holdings by over 11%, driven by its overweight to higher coupon, lower duration fixed rate securities. Floating rate securities, which are not held by the Benchmark, were one of the top performing coupon types during the period. The Fund benefited from its nearly 3.54% weighting in these securities, which held in relatively well due to the market’s increased expectations for front-end rate hikes. Additionally, the Fund had better security selection across every single duration bucket compared to the Benchmark.
The Russian invasion of Ukraine also had consequences for the preferred and hybrid securities market. In particular, Russian banks, which were not held by the Fund, suffered complete losses. The Benchmark entered the year with around a 1.06% weighting in Russian banks. The Fund does not own any securities from Russian or Ukrainian issuers. In general, the Fund has maintained a significant underweight to emerging market issuers.
Another area of outperformance was the new issuance market, where the Fund benefited from its security selection over the past four quarters. The Fund outperformed by approximately 490 to 540 bps compared to the Benchmark in each of these periods.
Market and Fund Outlook
We believe the preferred securities market, in our opinion, is positioned to perform well in the current environment where risks from inflationary pressures, rising interest rates and geopolitical conflicts have increased. Preferred securities have historically performed well during periods of rising short and long-term interest rates, and wider current yield spreads offer a potential cushion against rising rates. From a credit standpoint, preferred securities are concentrated in high quality issuers, which could help to insulate the asset class in a recessionary environment and against current geopolitical risks. U.S. and European banks are well capitalized to withstand current geopolitical risks, in our view, and other major sectors including insurance, utilities, and real estate investment trusts, are relatively defensive in nature. After the recent underperformance, we believe the preferred market has room for potential appreciation due to more attractive valuations, including yields at or near historical wides, as well as prices trading at significant discounts to par. We believe valuation metrics for preferreds are at the most attractive levels since the onset of the pandemic, providing an improved risk reward balance relative to the beginning of the year.
Page 6

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments
April 30, 2022 (Unaudited)
Shares   Description   Stated
Rate
  Stated
Maturity
  Value
$25 PAR PREFERRED SECURITIES – 21.1%
    Banks – 3.3%            
3,007  
Atlantic Union Bankshares Corp., Series A

  6.88%   (a)   $77,340
45,331  
Citizens Financial Group, Inc., Series D (b)

  6.35%   (a)   1,172,713
12,374  
Fifth Third Bancorp, Series I (b)

  6.63%   (a)   320,363
70,463  
First Republic Bank, Series M

  4.00%   (a)   1,233,102
143,945  
JPMorgan Chase & Co., Series LL (c)

  4.63%   (a)   2,789,654
56,961  
Old National Bancorp, Series A (c)

  7.00%   (a)   1,490,669
272,168  
Pinnacle Financial Partners, Inc., Series B (c)

  6.75%   (a)   6,964,779
602,536  
Signature Bank, Series A (c)

  5.00%   (a)   11,526,514
102,268  
Wells Fargo & Co., Series Q (b)

  5.85%   (a)   2,494,317
49,802  
Wells Fargo & Co., Series Y

  5.63%   (a)   1,175,327
205,000  
WesBanco, Inc., Series A (b) (c)

  6.75%   (a)   5,537,050
66,146  
Western Alliance Bancorp, Series A (b)

  4.25%   (a)   1,453,228
255,439  
Wintrust Financial Corp., Series E (b) (c)

  6.88%   (a)   6,792,123
        43,027,179
    Capital Markets – 1.2%            
29,434  
Affiliated Managers Group, Inc.

  4.75%   09/30/60   579,850
173,946  
Affiliated Managers Group, Inc. (d)

  4.20%   09/30/61   3,110,155
369,562  
Carlyle Finance LLC (d)

  4.63%   05/15/61   6,932,983
269,834  
KKR Group Finance Co., IX LLC (c)

  4.63%   04/01/61   5,199,701
12,696  
Oaktree Capital Group LLC, Series A

  6.63%   (a)   324,637
5,847  
State Street Corp., Series D (b)

  5.90%   (a)   147,344
        16,294,670
    Diversified Financial Services – 1.2%            
187,368  
Apollo Asset Management, Inc., Series B (c)

  6.38%   (a)   4,774,136
518,884  
Equitable Holdings, Inc., Series A (c)

  5.25%   (a)   11,290,916
        16,065,052
    Diversified Telecommunication Services – 0.3%            
132,294  
Qwest Corp. (d)

  6.50%   09/01/56   2,956,771
29,752  
Qwest Corp. (d)

  6.75%   06/15/57   667,635
        3,624,406
    Electric Utilities – 1.1%            
245,850  
Brookfield BRP Holdings Canada, Inc. (c)

  4.63%   (a)   4,296,229
195,763  
Brookfield Infrastructure Finance ULC (d)

  5.00%   05/24/81   3,807,590
120,245  
SCE Trust IV, Series J (b) (c)

  5.38%   (a)   2,621,341
81,831  
SCE Trust V, Series K (b)

  5.45%   (a)   1,953,306
63,514  
Southern (The) Co., Series 2020A (d)

  4.95%   01/30/80   1,341,416
        14,019,882
    Equity Real Estate Investment Trusts – 0.5%            
69,919  
Agree Realty Corp., Series A

  4.25%   (a)   1,313,778
11,821  
DigitalBridge Group, Inc., Series I

  7.15%   (a)   271,056
1,939  
DigitalBridge Group, Inc., Series J

  7.13%   (a)   43,724
173,947  
Global Net Lease, Inc., Series A (d)

  7.25%   (a)   4,407,817
17,466  
National Storage Affiliates Trust, Series A

  6.00%   (a)   439,270
        6,475,645
    Food Products – 0.7%            
352,723  
CHS, Inc., Series 3 (b) (c)

  6.75%   (a)   9,340,105
    Gas Utilities – 0.3%            
197,017  
South Jersey Industries, Inc. (c) (d)

  5.63%   09/16/79   3,447,798
See Notes to Financial Statements
Page 7

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Shares   Description   Stated
Rate
  Stated
Maturity
  Value
$25 PAR PREFERRED SECURITIES (Continued)
    Independent Power & Renewable Electricity Producers – 0.3%            
161,321  
Brookfield Renewable Partners L.P., Series 17

  5.25%   (a)   $3,365,156
    Insurance – 5.5%            
471,737  
Aegon Funding Co., LLC (c)

  5.10%   12/15/49   9,977,238
611  
Allstate (The) Corp. (b)

  5.10%   01/15/53   15,397
503,143  
American Equity Investment Life Holding Co., Series A (b) (c)

  5.95%   (a)   12,422,601
247,889  
American Equity Investment Life Holding Co., Series B (b) (c)

  6.63%   (a)   6,417,846
193,648  
AmTrust Financial Services, Inc. (d)

  7.25%   06/15/55   3,679,312
210,480  
AmTrust Financial Services, Inc. (d)

  7.50%   09/15/55   3,946,500
192,000  
Arch Capital Group Ltd., Series G (d)

  4.55%   (a)   3,703,680
52,243  
Aspen Insurance Holdings Ltd. (d)

  5.63%   (a)   1,216,739
349,200  
Aspen Insurance Holdings Ltd. (c)

  5.63%   (a)   8,083,980
8,296  
Aspen Insurance Holdings Ltd. (b)

  5.95%   (a)   203,169
133,393  
CNO Financial Group, Inc. (d)

  5.13%   11/25/60   2,734,557
584,250  
Delphi Financial Group, Inc., 3 Mo. LIBOR + 3.19% (d) (e)

  3.70%   05/15/37   12,123,187
11,540  
Globe Life, Inc. (d)

  4.25%   06/15/61   228,030
193,528  
Phoenix Cos. (The), Inc.

  7.45%   01/15/32   3,538,176
160,945  
RenaissanceRe Holdings Ltd., Series G

  4.20%   (a)   3,022,547
        71,312,959
    Mortgage Real Estate Investment Trusts – 0.4%            
6,592  
AGNC Investment Corp., Series C (b)

  7.00%   (a)   162,295
117,083  
AGNC Investment Corp., Series F (b) (d)

  6.13%   (a)   2,706,959
73,779  
Annaly Capital Management, Inc., Series F (b)

  6.95%   (a)   1,831,933
        4,701,187
    Multi-Utilities – 1.8%            
84,780  
Brookfield Infrastructure Partners L.P., Series 13

  5.13%   (a)   1,648,115
169  
Brookfield Infrastructure Partners L.P., Series 14

  5.00%   (a)   3,199
141,212  
DTE Energy Co.

  4.38%   12/01/81   2,800,234
15,000  
DTE Energy Co., Series E

  5.25%   12/01/77   348,450
670,375  
Integrys Holding, Inc. (b) (d)

  6.00%   08/01/73   16,926,969
74,647  
Sempra Energy

  5.75%   07/01/79   1,787,795
        23,514,762
    Oil, Gas & Consumable Fuels – 1.7%            
35,235  
Energy Transfer L.P., Series C (b)

  7.38%   (a)   837,536
1,879  
Energy Transfer L.P., Series D (b)

  7.63%   (a)   45,171
573,841  
Energy Transfer L.P., Series E (b) (c)

  7.60%   (a)   13,886,952
172,376  
NuStar Energy L.P., Series A, 3 Mo. LIBOR + 6.77% (e)

  7.59%   (a)   4,137,024
8,648  
NuStar Energy L.P., Series C (b)

  9.00%   (a)   211,876
135,233  
NuStar Logistics L.P., 3 Mo. LIBOR + 6.73% (d) (e)

  7.78%   01/15/43   3,420,043
        22,538,602
    Real Estate Management & Development – 1.7%            
273,319  
Brookfield Property Partners L.P., Series A

  5.75%   (a)   5,398,050
374,243  
Brookfield Property Partners L.P., Series A2 (c)

  6.38%   (a)   7,892,785
398,983  
Brookfield Property Preferred L.P.

  6.25%   07/26/81   8,326,775
        21,617,610
    Trading Companies & Distributors – 0.6%            
284,980  
WESCO International, Inc., Series A (b) (d)

  10.63%   (a)   8,136,179
    Wireless Telecommunication Services – 0.5%            
75,137  
United States Cellular Corp. (d)

  6.25%   09/01/69   1,628,219
Page 8
See Notes to Financial Statements

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Shares   Description   Stated
Rate
  Stated
Maturity
  Value
$25 PAR PREFERRED SECURITIES (Continued)
    Wireless Telecommunication Services (Continued)            
253,239  
United States Cellular Corp. (d)

  5.50%   06/01/70   $5,106,564
        6,734,783
   
Total $25 Par Preferred Securities

  274,215,975
    (Cost $302,719,982)            
$100 PAR PREFERRED SECURITIES – 3.3%
    Banks – 3.3%            
80,000  
AgriBank FCB (b)

  6.88%   (a)   8,420,000
179,000  
CoBank ACB, Series F (b) (c)

  6.25%   (a)   18,079,000
54,250  
CoBank ACB, Series H (b) (c)

  6.20%   (a)   5,682,687
102,000  
Farm Credit Bank of Texas (b) (c) (f)

  6.75%   (a)   10,582,500
   
Total $100 Par Preferred Securities

  42,764,187
    (Cost $42,908,750)            
$1,000 PAR PREFERRED SECURITIES – 3.8%
    Banks – 2.9%            
7,719  
Bank of America Corp., Series L

  7.25%   (a)   9,392,634
23,451  
Wells Fargo & Co., Series L

  7.50%   (a)   28,410,652
        37,803,286
    Diversified Financial Services – 0.9%            
12,000  
Compeer Financial ACA (b) (c) (f)

  6.75%   (a)   12,240,000
   
Total $1,000 Par Preferred Securities

  50,043,286
    (Cost $54,528,152)            
$1,000,000 PAR PREFERRED SECURITIES – 1.2%
    Mortgage Real Estate Investment Trusts – 1.2%            
12  
FT Real Estate Securities Co., Inc. (g) (h) (i)

  9.50%   (a)   15,311,808
    (Cost $15,990,000)            
Par
Amount
  Description   Stated
Rate
  Stated
Maturity
  Value
CAPITAL PREFERRED SECURITIES – 113.7%
    Banks – 50.0%            
$12,935,000  
Australia & New Zealand Banking Group Ltd. (b) (c) (f) (j)

  6.75%   (a)   13,560,213
8,800,000  
Banco Bilbao Vizcaya Argentaria S.A., Series 9 (b) (c) (j)

  6.50%   (a)   8,547,000
2,000,000  
Banco Mercantil del Norte S.A. (b) (f) (j)

  6.88%   (a)   1,981,290
5,000,000  
Banco Mercantil del Norte S.A. (b) (f) (j)

  7.50%   (a)   4,793,875
8,000,000  
Banco Mercantil del Norte S.A. (b) (f) (j)

  7.63%   (a)   7,934,680
7,400,000  
Banco Mercantil del Norte S.A. (b) (f) (j)

  8.38%   (a)   7,649,935
10,800,000  
Banco Santander S.A. (b) (c) (j)

  4.75%   (a)   9,566,843
12,600,000  
Banco Santander S.A. (b) (j) (k)

  7.50%   (a)   12,737,819
6,114,000  
Bank of America Corp., Series RR (b) (c)

  4.38%   (a)   5,426,175
6,000,000  
Bank of America Corp., Series TT (b)

  6.13%   (a)   6,012,000
5,900,000  
Bank of America Corp., Series X (b) (c)

  6.25%   (a)   5,987,320
10,300,000  
Bank of Nova Scotia (The) (b) (c)

  4.90%   (a)   10,131,698
7,300,000  
Barclays PLC (b) (c) (j)

  4.38%   (a)   6,104,625
11,200,000  
Barclays PLC (b) (c) (j)

  6.13%   (a)   10,996,944
49,560,000  
Barclays PLC (b) (c) (d) (j)

  8.00%   (a)   51,201,675
8,550,000  
BBVA Bancomer S.A. (b) (d) (f) (j)

  5.88%   09/13/34   8,161,231
15,000,000  
BNP Paribas S.A. (b) (c) (f) (j)

  4.63%   (a)   13,605,600
3,300,000  
BNP Paribas S.A. (b) (f) (j)

  7.38%   (a)   3,437,296
13,370,000  
Citigroup, Inc. (b) (c)

  3.88%   (a)   12,110,813
5,041,000  
Citigroup, Inc. (b) (c)

  5.90%   (a)   5,137,636
See Notes to Financial Statements
Page 9

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Par
Amount
  Description   Stated
Rate
  Stated
Maturity
  Value
CAPITAL PREFERRED SECURITIES (Continued)
    Banks (Continued)            
$3,022,000  
Citigroup, Inc. (b)

  5.95%   (a)   $3,022,000
9,937,000  
Citigroup, Inc., Series D (b) (c)

  5.35%   (a)   9,812,787
8,600,000  
Citigroup, Inc., Series P (b) (c)

  5.95%   (a)   8,418,970
14,486,000  
Citigroup, Inc., Series W (b) (c)

  4.00%   (a)   13,182,260
7,381,000  
Citigroup, Inc., Series Y (b) (c)

  4.15%   (a)   6,547,685
1,720,000  
Citizens Financial Group, Inc., Series B (b)

  6.00%   (a)   1,644,836
6,800,000  
Citizens Financial Group, Inc., Series G (b) (c)

  4.00%   (a)   6,052,000
25,000,000  
CoBank ACB, Series I (b) (c)

  6.25%   (a)   25,187,500
2,800,000  
Commerzbank AG (b) (j) (k)

  7.00%   (a)   2,769,200
20,000,000  
Credit Agricole S.A. (b) (c) (f) (j)

  6.88%   (a)   20,135,000
28,240,000  
Credit Agricole S.A. (b) (c) (f) (j)

  8.13%   (a)   30,437,693
3,000,000  
Danske Bank A.S. (b) (j) (k)

  4.38%   (a)   2,718,750
9,080,000  
Danske Bank A.S. (b) (j) (k)

  6.13%   (a)   8,995,847
6,740,000  
Danske Bank A.S. (b) (c) (j) (k)

  7.00%   (a)   6,716,397
3,450,000  
Farm Credit Bank of Texas, Series 3 (b) (c) (f)

  6.20%   (a)   3,657,000
7,500,000  
Farm Credit Bank of Texas, Series 4 (b) (c) (d) (f)

  5.70%   (a)   7,875,000
2,464,000  
Fifth Third Bancorp, Series H (b)

  5.10%   (a)   2,399,320
18,000,000  
HSBC Holdings PLC (b) (c) (j)

  6.38%   (a)   18,101,790
1,600,000  
Huntington Bancshares, Inc., Series G (b) (c)

  4.45%   (a)   1,536,133
14,092,000  
ING Groep N.V. (b) (j)

  5.75%   (a)   13,540,087
12,920,000  
ING Groep N.V. (b) (c) (j)

  6.50%   (a)   12,917,416
16,200,000  
Intesa Sanpaolo S.p.A. (b) (c) (f) (j)

  7.70%   (a)   16,362,000
6,646,000  
JPMorgan Chase & Co., Series Q (b) (c)

  5.15%   (a)   6,554,617
5,045,000  
JPMorgan Chase & Co., Series V, 3 Mo. LIBOR + 3.32% (c) (e)

  4.29%   (a)   4,994,550
13,045,000  
Lloyds Banking Group PLC (b) (c) (j)

  6.75%   (a)   13,149,817
21,213,000  
Lloyds Banking Group PLC (b) (c) (j)

  7.50%   (a)   21,676,928
5,400,000  
M&T Bank Corp. (b) (c)

  3.50%   (a)   4,549,569
2,000,000  
Macquarie Bank Ltd. (b) (f) (j)

  6.13%   (a)   1,927,670
2,900,000  
NatWest Group PLC (b) (j)

  6.00%   (a)   2,865,345
1,200,000  
NatWest Group PLC (b) (c) (j)

  8.00%   (a)   1,265,208
24,400,000  
Nordea Bank Abp (b) (c) (f) (j)

  6.63%   (a)   24,827,000
6,300,000  
PNC Financial Services Group (The), Inc., Series T (b) (c)

  3.40%   (a)   5,433,750
3,000,000  
PNC Financial Services Group (The), Inc., Series U (b)

  6.00%   (a)   2,988,600
5,150,000  
Regions Financial Corp., Series D (b) (c)

  5.75%   (a)   5,265,875
9,200,000  
Skandinaviska Enskilda Banken AB (b) (c) (j) (k)

  5.13%   (a)   8,837,750
26,100,000  
Societe Generale S.A. (b) (c) (f) (j)

  5.38%   (a)   22,981,050
6,710,000  
Societe Generale S.A. (b) (c) (f) (j)

  7.88%   (a)   6,883,826
1,300,000  
Societe Generale S.A. (b) (f) (j)

  8.00%   (a)   1,355,803
19,940,000  
Standard Chartered PLC (b) (f) (j)

  4.30%   (a)   16,550,200
9,400,000  
Standard Chartered PLC (b) (f) (j)

  6.00%   (a)   9,364,750
65,000  
Standard Chartered PLC (b) (k)

  7.01%   (a)   75,697
14,346,000  
SVB Financial Group, Series D (b) (c)

  4.25%   (a)   12,445,155
5,800,000  
Swedbank AB, Series NC5 (b) (j) (k)

  5.63%   (a)   5,752,875
2,779,000  
Texas Capital Bancshares, Inc. (b)

  4.00%   05/06/31   2,666,679
580,000  
Truist Financial Corp., Series L (b)

  5.05%   (a)   553,900
21,201,000  
UniCredit S.p.A. (b) (c) (j) (k)

  8.00%   (a)   21,426,579
5,000,000  
UniCredit S.p.A. (b) (d) (f)

  5.46%   06/30/35   4,521,435
16,181,000  
Wells Fargo & Co., Series BB (b) (c)

  3.90%   (a)   14,774,467
        650,803,434
    Capital Markets – 12.7%            
12,296,000  
Apollo Management Holdings L.P. (b) (c) (d) (f)

  4.95%   01/14/50   11,432,769
8,340,000  
Bank of New York Mellon (The) Corp., Series I (b) (c)

  3.75%   (a)   7,443,450
2,200,000  
Charles Schwab (The) Corp. (b)

  5.00%   (a)   2,125,134
12,294,000  
Charles Schwab (The) Corp., Series G (b) (c)

  5.38%   (a)   12,432,307
Page 10
See Notes to Financial Statements

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Par
Amount
  Description   Stated
Rate
  Stated
Maturity
  Value
CAPITAL PREFERRED SECURITIES (Continued)
    Capital Markets (Continued)            
$19,380,000  
Charles Schwab (The) Corp., Series I (b) (c)

  4.00%   (a)   $17,597,040
19,220,000  
Credit Suisse Group AG (b) (c) (f) (j)

  5.25%   (a)   16,937,625
2,000,000  
Credit Suisse Group AG (b) (f) (j)

  6.25%   (a)   1,945,998
12,080,000  
Credit Suisse Group AG (b) (c) (f) (j)

  6.38%   (a)   11,402,191
1,629,000  
Credit Suisse Group AG (b) (c) (f) (j)

  7.50%   (a)   1,635,671
28,250,000  
Credit Suisse Group AG (b) (c) (f) (j)

  7.50%   (a)   28,046,600
13,900,000  
Deutsche Bank AG (b) (j)

  6.00%   (a)   12,996,500
3,400,000  
Deutsche Bank AG (b) (j)

  7.50%   (a)   3,344,750
7,850,000  
EFG International AG (b) (j) (k)

  5.50%   (a)   7,531,361
300,000  
Goldman Sachs Group (The), Inc., Series R (b) (c)

  4.95%   (a)   289,500
4,680,000  
Goldman Sachs Group (The), Inc., Series T (b) (c)

  3.80%   (a)   4,130,026
11,486,000  
Goldman Sachs Group (The), Inc., Series U (b) (c)

  3.65%   (a)   9,992,820
10,000,000  
UBS Group AG (b) (f) (j)

  4.88%   (a)   9,212,500
4,800,000  
UBS Group AG (b) (j) (k)

  6.88%   (a)   4,875,648
2,165,000  
UBS Group AG (b) (f) (j)

  7.00%   (a)   2,205,594
        165,577,484
    Consumer Finance – 1.9%            
4,500,000  
Ally Financial, Inc., Series B (b)

  4.70%   (a)   3,899,812
12,861,000  
American Express Co. (b) (c)

  3.55%   (a)   11,109,975
11,339,000  
Capital One Financial Corp., Series M (b) (c)

  3.95%   (a)   9,864,930
        24,874,717
    Diversified Financial Services – 4.0%            
15,000,000  
American AgCredit Corp. (b) (c) (f)

  5.25%   (a)   13,706,250
9,300,000  
Ares Finance Co. III LLC (b) (c) (f)

  4.13%   06/30/51   8,665,440
9,350,000  
Capital Farm Credit ACA, Series 1 (b) (c) (f)

  5.00%   (a)   8,555,250
3,800,000  
Compeer Financial ACA (b) (c) (f)

  4.88%   (a)   3,377,250
1,850,000  
Depository Trust & Clearing (The) Corp., Series D (b) (f)

  3.38%   (a)   1,646,500
11,949,000  
Voya Financial, Inc. (b) (c)

  5.65%   05/15/53   11,904,251
4,781,000  
Voya Financial, Inc., Series A (b) (c)

  6.13%   (a)   4,769,048
        52,623,989
    Diversified Telecommunication Services – 0.9%            
11,222,000  
Koninklijke KPN N.V. (b) (d) (f)

  7.00%   03/28/73   11,362,275
    Electric Utilities – 3.4%            
5,116,000  
Edison International, Series B (b) (c)

  5.00%   (a)   4,643,402
26,976,000  
Emera, Inc., Series 16-A (b) (c) (d)

  6.75%   06/15/76   27,448,080
8,586,000  
Southern (The) Co., Series 21-A (b) (c)

  3.75%   09/15/51   7,748,865
5,110,000  
Southern California Edison Co., Series E, 3 Mo. LIBOR + 4.20% (c) (e)

  4.52%   (a)   5,033,350
        44,873,697
    Energy Equipment & Services – 1.6%            
21,650,000  
Transcanada Trust (b) (c) (d)

  5.50%   09/15/79   20,919,312
    Food Products – 5.5%            
6,000,000  
Dairy Farmers of America, Inc. (c) (g)

  7.13%   (a)   5,887,501
17,788,000  
Land O’Lakes Capital Trust I (c) (d) (g)

  7.45%   03/15/28   20,014,080
10,000,000  
Land O’Lakes, Inc. (c) (f)

  7.25%   (a)   10,488,000
33,000,000  
Land O’Lakes, Inc. (c) (f)

  8.00%   (a)   34,774,575
        71,164,156
    Insurance – 14.3%            
3,900,000  
Allianz SE (b) (f)

  3.50%   (a)   3,539,250
See Notes to Financial Statements
Page 11

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Par
Amount
  Description   Stated
Rate
  Stated
Maturity
  Value
CAPITAL PREFERRED SECURITIES (Continued)
    Insurance (Continued)            
$7,368,000  
Asahi Mutual Life Insurance Co. (b) (c) (k)

  6.50%   (a)   $7,524,570
17,585,000  
Assurant, Inc. (b) (c) (d)

  7.00%   03/27/48   18,189,133
5,150,000  
Assured Guaranty Municipal Holdings, Inc. (b) (d) (f)

  6.40%   12/15/66   5,209,225
9,932,000  
AXIS Specialty Finance LLC (b) (d)

  4.90%   01/15/40   9,250,367
8,704,000  
Enstar Finance LLC (b) (c) (d)

  5.75%   09/01/40   8,577,134
17,149,000  
Enstar Finance LLC (b) (d)

  5.50%   01/15/42   15,978,667
15,300,000  
Fortegra Financial Corp. (b) (c) (d) (g)

  8.50%   10/15/57   18,305,521
22,078,000  
Global Atlantic Fin Co. (b) (d) (f)

  4.70%   10/15/51   20,076,850
6,200,000  
Hartford Financial Services Group (The), Inc., 3 Mo. LIBOR + 2.13% (c) (e) (f)

  2.63%   02/12/47   5,462,632
8,183,000  
Kuvare US Holdings, Inc. (b) (c) (f)

  7.00%   02/17/51   8,496,059
2,000,000  
La Mondiale SAM (b) (c) (k)

  5.88%   01/26/47   2,025,488
9,500,000  
Lancashire Holdings Ltd. (b) (c) (k)

  5.63%   09/18/41   8,497,750
6,700,000  
Liberty Mutual Group, Inc. (b) (c) (f)

  4.13%   12/15/51   6,090,601
11,300,000  
Markel Corp. (b) (c)

  6.00%   (a)   11,568,375
2,442,000  
Nationwide Financial Services Capital Trust (d) (l)

  7.90%   03/01/37   2,905,980
2,910,000  
Nationwide Financial Services, Inc. (c) (d)

  6.75%   05/15/37   3,131,887
2,000,000  
Principal Financial Group, Inc., 3 Mo. LIBOR + 3.04% (e)

  3.55%   05/15/55   1,925,000
12,900,000  
QBE Insurance Group Ltd. (b) (c) (f)

  5.88%   (a)   12,996,750
9,765,000  
QBE Insurance Group Ltd. (b) (c) (k)

  6.75%   12/02/44   10,109,363
2,000,000  
QBE Insurance Group Ltd. (b) (k)

  5.88%   06/17/46   2,035,229
5,070,000  
Reinsurance Group of America, Inc., 3 Mo. LIBOR + 2.67% (d) (e)

  3.49%   12/15/65   4,537,650
        186,433,481
    Multi-Utilities – 3.2%            
16,581,000  
Algonquin Power & Utilities Corp. (b) (c)

  4.75%   01/18/82   15,187,698
4,491,000  
CenterPoint Energy, Inc., Series A (b) (c)

  6.13%   (a)   4,324,137
6,400,000  
NiSource, Inc. (b) (c)

  5.65%   (a)   6,208,000
3,906,000  
Sempra Energy (b) (c)

  4.88%   (a)   3,857,175
13,642,000  
Sempra Energy (b) (c)

  4.13%   04/01/52   12,053,848
        41,630,858
    Oil, Gas & Consumable Fuels – 10.7%            
4,500,000  
Buckeye Partners L.P. (b)

  6.38%   01/22/78   3,722,310
13,756,000  
DCP Midstream L.P., Series A (b) (c)

  7.38%   (a)   13,102,590
7,907,000  
DCP Midstream Operating L.P. (b) (c) (f)

  5.85%   05/21/43   7,201,656
27,810,000  
Enbridge, Inc. (b) (c)

  6.25%   03/01/78   28,107,426
21,262,000  
Enbridge, Inc., Series 16-A (b) (c)

  6.00%   01/15/77   21,403,377
15,150,000  
Enbridge, Inc., Series 20-A (b) (c)

  5.75%   07/15/80   15,074,250
20,365,000  
Energy Transfer L.P., 3 Mo. LIBOR + 3.02% (e)

  3.33%   11/01/66   16,801,125
805,000  
Energy Transfer L.P., Series A (b)

  6.25%   (a)   685,256
5,428,000  
Energy Transfer L.P., Series F (b)

  6.75%   (a)   5,238,020
2,236,000  
Energy Transfer L.P., Series H (b)

  6.50%   (a)   2,130,036
13,399,000  
Enterprise Products Operating LLC, 3 Mo. LIBOR + 2.78% (c) (e)

  3.30%   06/01/67   11,709,453
8,287,000  
Enterprise Products Operating LLC, Series D (b) (c)

  4.88%   08/16/77   7,417,754
6,450,000  
Transcanada Trust (b) (d)

  5.60%   03/07/82   6,248,438
        138,841,691
    Trading Companies & Distributors – 3.8%            
41,445,000  
AerCap Holdings N.V. (b) (c)

  5.88%   10/10/79   38,915,197
4,863,000  
Air Lease Corp., Series B (b) (d)

  4.65%   (a)   4,388,858
7,200,000  
Aircastle Ltd. (b) (d) (f)

  5.25%   (a)   6,418,016
        49,722,071
Page 12
See Notes to Financial Statements

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
Par
Amount
  Description   Stated
Rate
  Stated
Maturity
  Value
CAPITAL PREFERRED SECURITIES (Continued)
    Transportation Infrastructure – 1.7%            
$18,772,000  
AerCap Global Aviation Trust (b) (c) (f)

  6.50%   06/15/45   $18,276,044
3,844,000  
BNSF Funding Trust I (b) (d)

  6.61%   12/15/55   3,959,320
        22,235,364
   
Total Capital Preferred Securities

  1,481,062,529
    (Cost $1,533,496,302)            
Principal
Value
  Description   Stated
Coupon
  Stated
Maturity
  Value
FOREIGN CORPORATE BONDS AND NOTES – 1.9%
    Insurance – 1.9%            
23,795,925  
Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc. (f) (m)

  7.63%   10/15/25   24,198,790
    (Cost $24,743,602)            
CORPORATE BONDS AND NOTES – 0.5%
    Insurance – 0.5%            
6,600,000  
AmTrust Financial Services, Inc. (d)

  6.13%   08/15/23   6,583,403
    (Cost $6,593,966)            
    
Shares   Description   Value
EXCHANGE-TRADED FUNDS – 0.1%
    Capital Markets – 0.1%    
120,493  
Invesco Preferred ETF

  1,502,547
    (Cost $1,657,715)    
   
Total Investments – 145.6%

  1,895,682,525
    (Cost $1,982,638,469)    
REVERSE REPURCHASE AGREEMENT – (7.7)%
(100,000,000)  
Scotia Bank, due 7/29/22, 1 month LIBOR plus 65 bps

  (100,000,000)
   
Outstanding Loan – (39.4)%

  (512,600,000)
   
Net Other Assets and Liabilities – 1.5%

  19,300,344
   
Net Assets – 100.0%

  $1,302,382,869
    
(a) Perpetual maturity.
(b) Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at April 30, 2022. At a predetermined date, the fixed rate will change to a floating rate or a variable rate.
(c) All or a portion of this security serves as collateral on the outstanding loan.
(d) This security or a portion of this security is segregated as collateral for reverse repurchase agreements. All of these securities are corporate bonds with a remaining contractual maturity of 30-90 days. At April 30, 2022, securities noted as such are valued at $108,181,705.
(e) Floating or variable rate security.
(f) 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 Fund’s Board of Trustees, this security has been determined to be liquid by Stonebridge Advisors LLC (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 April 30, 2022, securities noted as such amounted to $544,185,408 or 41.8% of net assets.
(g) 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 Note 2D - Restricted Securities in the Notes to Financial Statements).
See Notes to Financial Statements
Page 13

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
(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 April 30, 2022, securities noted as such are valued at $15,311,808 or 1.2% of net assets.
(i) This security’s value was determined using significant unobservable inputs. (see Note 2A- Portfolio Valuation in the Notes to Financial Statements).
(j) This security is a contingent convertible capital security which may be subject to conversion into common stock of the issuer under certain circumstances. At April 30, 2022, securities noted as such amounted to $551,972,445 or 28.8% of managed assets. Of these securities, 5.5% originated in emerging markets, and 94.5% originated in foreign markets.
(k) This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act.
(l) Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be illiquid by the Sub-Advisor.
(m) 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. For the six months ended April 30, 2022, this security paid all of its interest in cash.
    
LIBOR London Interbank Offered Rate

Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of April 30, 2022 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):
ASSETS TABLE
  Total
Value at
4/30/2022
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
$25 Par Preferred Securities:        
Insurance

$71,312,959 $48,025,784 $23,287,175 $
Multi-Utilities

23,514,762 6,587,793 16,926,969
Other industry categories*

179,388,254 179,388,254
$100 Par Preferred Securities*

42,764,187 42,764,187
$1,000 Par Preferred Securities:        
Banks

37,803,286 37,803,286
Diversified Financial Services

12,240,000 12,240,000
$1,000,000 Par Preferred Securities*

15,311,808 15,311,808
Capital Preferred Securities*

1,481,062,529 1,481,062,529
Foreign Corporate Bonds and Notes*

24,198,790 24,198,790
Corporate Bonds and Notes*

6,583,403 6,583,403
Exchange-Traded Funds*

1,502,547 1,502,547
Total Investments

$1,895,682,525 $273,307,664 $1,607,063,053 $15,311,808
 
LIABILITIES TABLE
  Total
Value at
4/30/2022
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Reverse Repurchase Agreements

$(100,000,000) $$(100,000,000) $
    
* See Portfolio of Investments for industry breakout.
Page 14
See Notes to Financial Statements

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
April 30, 2022 (Unaudited)
The following table presents the activity of the Fund’s investments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period presented.
Beginning Balance at October 31, 2021  
$1,000,000 Par Preferred Securities $16,938,396
Net Realized Gain (Loss)
Net Change in Unrealized Appreciation/Depreciation (1,626,588)
Purchases
Sales
Transfers In
Transfers Out
Ending Balance at April 30, 2022  
$1,000,000 Par Preferred Securities 15,311,808
Total Level 3 holdings $15,311,808
There was a net change of $(1,626,588) in unrealized appreciation (depreciation) from Level 3 investments held as of April 30, 2022.
See Notes to Financial Statements
Page 15

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
ASSETS:  
Investments, at value

 (Cost $1,982,638,469)

$ 1,895,682,525
Cash

140,769
Foreign currency (Cost $100)

98
Receivables:  
Interest

19,874,552
Dividends

1,373,720
Investment securities sold

788,861
Interest reclaims

239,837
Dividend reclaims

81,760
Prepaid expenses

31,601
Total Assets

1,918,213,723
LIABILITIES:  
Outstanding loan

512,600,000
Reverse repurchase agreement

100,000,000
Payables:  
Investment advisory fees

1,366,299
Interest and fees on loan and repurchase agreement

718,084
Investment securities purchased

697,611
Administrative fees

305,443
Legal fees

64,744
Custodian fees

34,323
Audit and tax fees

27,370
Shareholder reporting fees

10,898
Transfer agent fees

4,885
Financial reporting fees

771
Other liabilities

426
Total Liabilities

615,830,854
NET ASSETS

$1,302,382,869
NET ASSETS consist of:  
Paid-in capital

$ 1,430,655,674
Par value

608,478
Accumulated distributable earnings (loss)

(128,881,283)
NET ASSETS

$1,302,382,869
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)

$21.40
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)

60,847,827
Page 16
See Notes to Financial Statements

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statement of Operations
For the Six Months Ended April 30, 2022 (Unaudited)
INVESTMENT INCOME:  
Interest (net of foreign withholding tax of $6,932)

$ 46,414,381
Dividends (net of foreign withholding tax of $34,763)

 12,783,608
Other

 100
Total investment income

59,198,089
EXPENSES:  
Investment advisory fees

 8,767,229
Interest and fees on loan and repurchase agreement

 3,156,787
Administrative fees

 344,160
Custodian fees

 102,811
Shareholder reporting fees

 99,436
Legal fees

 55,364
Listing expense

 29,763
Audit and tax fees

 20,643
Transfer agent fees

 11,338
Trustees’ fees and expenses

 7,719
Financial reporting fees

 4,625
Other

 25,846
Total expenses

12,625,721
NET INVESTMENT INCOME (LOSS)

46,572,368
NET REALIZED AND UNREALIZED GAIN (LOSS):  
Net realized gain (loss) on:  
Investments

2,985,634
Foreign currency transactions

(35)
Net realized gain (loss)

 2,985,599
Net change in unrealized appreciation (depreciation) on:  
Investments

(217,664,794)
Foreign currency translation

(2)
Net change in unrealized appreciation (depreciation)

(217,664,796)
NET REALIZED AND UNREALIZED GAIN (LOSS)

(214,679,197)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

$(168,106,829)
See Notes to Financial Statements
Page 17

First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statements of Changes in Net Assets
  Six Months
Ended
4/30/2022
(Unaudited)
  Year
Ended
10/31/2021
OPERATIONS:      
Net investment income (loss)

$ 46,572,368   $ 95,982,008
Net realized gain (loss)

 2,985,599    33,755,999
Net change in unrealized appreciation (depreciation)

 (217,664,796)    101,543,158
Net increase (decrease) in net assets resulting from operations

(168,106,829)   231,281,165
DISTRIBUTIONS TO SHAREHOLDERS FROM:      
Investment operations

 (46,543,367)    (89,986,073)