First Trust Intermediate Duration Preferred & Income Fund

01/10/2025 | Press release | Distributed by Public on 01/10/2025 12:41

Annual Report by Investment Company (Form N-CSR)

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 number811-22795

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: October 31, 2024

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, NW, 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) Following is a copy of the annual report transmitted to shareholders pursuant to Rule 30e-1 under the Act.
 
First Trust
Intermediate Duration Preferred & Income Fund (FPF)
Annual Report
For the Year Ended
October 31, 2024
 
 
 
Table of Contents
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Annual Report
October 31, 2024 
At a Glance
1
Portfolio Commentary
3
Portfolio of Investments
6
Statement of Assets and Liabilities
14
Statement of Operations
15
Statements of Changes in Net Assets
16
Statement of Cash Flows
17
Financial Highlights
18
Notes to Financial Statements
19
Report of Independent Registered Public Accounting Firm
26
Additional Information
27
Investment Objectives, Policies, Risks and Effects of Leverage
31
Board of Trustees and Officers
38
Privacy Policy
40
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 Investment Objectives, Policies, Risks and Effects of Leverage 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.comor 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.
First Trust Intermediate Duration Preferred & Income Fund (FPF)
"AT A GLANCE"
As of October 31, 2024 (Unaudited)
 
Fund Statistics
Symbol on New York Stock Exchange
FPF
Common Share Price
$18.78
Common Share Net Asset Value ("NAV")
$19.70
Premium (Discount) to NAV
(4.67
)%
Net Assets Applicable to Common Shares
$1,198,874,209
Current Distribution per Common Share(1)
$0.1375
Current Annualized Distribution per Common Share
$1.6500
Current Distribution Rate on Common Share Price(2)
8.79
%
Current Distribution Rate on NAV(2)
8.38
%
Common Share Price & NAV (weekly closing price)
  
 
Performance
Average Annual Total Returns
1 Year Ended
10/31/24
5 Years Ended
10/31/24
10 Years Ended
10/31/24
Inception (5/23/13)
to 10/31/24
Fund Performance(3)
NAV
28.75
%
3.42
%
6.02
%
6.46
%
Market Value
44.64
%
2.73
%
6.66
%
5.60
%
Index Performance
ICE BofA US Investment Grade Institutional
Capital Securities Index
17.82
%
3.90
%
4.79
%
4.92
%
Blended Index(4)
20.56
%
2.84
%
N/A
N/A
 
(1)
Most recent distribution paid through October 31, 2024. Subject to change in the future.
(2)
Distribution rates are calculated by annualizing the most recent distribution paid through the report date and then dividing by Common Share Price or NAV, as applicable, as of October 31, 2024. 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 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 ratio 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 1
First Trust Intermediate Duration Preferred & Income Fund (FPF)
"AT A GLANCE" (Continued)
As of October 31, 2024 (Unaudited)
Industry Classification
% of Total
Investments
Banks
47.5%
Insurance
14.5
Oil, Gas & Consumable Fuels
7.8
Capital Markets
7.8
Electric Utilities
5.4
Multi-Utilities
5.1
Food Products
3.0
Financial Services
2.9
Wireless Telecommunication Services
1.5
Independent Power & Renewable Electricity Producers
1.0
Mortgage REITs
0.7
Gas Utilities
0.7
Real Estate Management & Development
0.6
Construction Materials
0.5
Retail REITs
0.4
Automobiles
0.2
Trading Companies & Distributors
0.2
Diversified Telecommunication Services
0.1
Diversified REITs
0.1
Specialized REITs
0.0*
Total
100.0%
 
*
Amount is less than 0.1%.
 
Top Ten Holdings
% of Total
Investments
Barclays PLC
2.0%
Wells Fargo & Co., Series L
1.9
JPMorgan Chase & Co., Series NN
1.8
Land O'Lakes, Inc.
1.8
Bank of America Corp., Series TT
1.7
Banco Santander S.A.
1.7
Intesa Sanpaolo S.p.A.
1.6
Enbridge, Inc.
1.5
Hartford Financial Services Group (The), Inc.
1.5
HSBC Holdings PLC
1.5
Total
17.0%
 
Country Allocation
% of Total
Investments
United States
54.8%
Canada
14.9
United Kingdom
8.3
France
7.1
Spain
4.2
Mexico
2.7
Bermuda
2.2
Italy
1.6
Netherlands
1.2
Germany
1.1
Sweden
0.5
Switzerland
0.4
Australia
0.4
Japan
0.3
Chile
0.3
Total
100.0%
  
Credit Quality(5)
% of Total
Investments
BBB+
12.2%
BBB
24.4
BBB-
37.8
BB+
13.3
BB
6.8
BB-
1.7
B
0.6
B-
0.6
Not Rated
2.6
Total
100.0%
 
Fund Allocation
% of Net Assets
Capital Preferred Securities
122.8%
$25 Par Preferred Securities
19.7
$1,000 Par Preferred Securities
3.8
$1,000,000 Par Preferred Securities
1.0
Reverse Repurchase Agreement
(8.3)
Outstanding Loan
(40.3)
Net Other Assets and Liabilities
1.3
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 2
Portfolio Commentary
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Annual Report
October 31, 2024 (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*
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
For the 12-month period ended October 31, 2024, the broad preferred and hybrid securities market generated returns of over 20% due to attractive valuations in an environment of better than anticipated economic data, disinflation and dovish actions by the Federal Reserve (the "Fed".) The resiliency of preferred and hybrid capital issuer credit fundamentals coupled with high current yields and declining interest rates in the back half of the period resulted in positive returns across all preferred and hybrid securities market segments. The best performing segment of the preferred and hybrid securities market was the $25 par exchange traded market, which produced returns of 24.80%. Non-investment grade $1,000 pars were the second best performing market segment, returning 23.16%. $1,000 par contingent convertible capital securities returned 18.09% and $1,000 par investment grade securities returned 17.82%.
Performance Analysis 
Average Annual Total Returns
1 Year Ended
10/31/24
5 Years Ended
10/31/24
10 Years Ended
10/31/24
Inception (5/23/13)
to 10/31/24
Fund Performance(1)
NAV
28.75
%
3.42
%
6.02
%
6.46
%
Market Value
44.64
%
2.73
%
6.66
%
5.60
%
Index Performance
ICE BofA US Investment Grade Institutional Capital
Securities Index
17.82
%
3.90
%
4.79
%
4.92
%
Blended Index(2)
20.56
%
2.84
%
N/A
N/A
 
*
On March 1, 2024, Scott Fleming left his Portfolio Manager role for the Fund.  
(1)
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.
(2)
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 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 ratio 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 3
Portfolio Commentary (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Annual Report
October 31, 2024 (Unaudited)
 
  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 index does not actually hold a portfolio of securities and therefore does 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 returned 28.75% for the 12-month period ended October 31, 2024, based on net asset value. The Fund outperformed its benchmark, which is a blend of 30% of the ICE BofA Core Plus Fixed Rate Preferred Securities Index, 30% of the ICE BofA US Investment Grade Institutional Capital Securities Index, 30% of the ICE USD Contingent Capital Index and 10% of the ICE BofA US High Yield Institutional Capital Securities Index, which returned 20.56% for the same period.
This outperformance was primarily driven by leverage, which added over 800 basis points to the performance of the Fund during the bullish period. Another contributor to the Fund's relative performance versus the benchmark was its security selection within variable rate coupon securities. Many of these securities were trading at deep discounts to par to start the period but pulled towards par during the period as resilient economic data and disinflation drove spreads tighter across the market. This outperformance was most pronounced within shorter duration securities that are approaching their first call dates. Other factors that contributed to the Fund's outperformance were as follows:
•
Better security selection and overweight allocation to newly issued securities in 2024;
•
Security selection within insurance and utilities;
•
Overweight allocation and security selection within energy pipeline and U.S. Global Significantly Important Banks; and
•
Security selection within European and high-quality Emerging Market banks.
Although the Fund outperformed during the period, there were several factors that detracted from relative performance compared to the benchmark. This included the Fund's underweight to longer duration (10+ year) securities, including fixed rate coupon security structures. These securities outperformed as rates moved lower during the period. Other factors that detracted from relative performance were as follows:
•
Underweight allocation and security selection within regional and super regional banks;
•
Overweight allocation to Federal Farm Credit Banks;
•
Underweight allocation to consumer finance.
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 the period at $0.1075 per share and ended the period at $0.1375 per share. At the $0.1375 per share monthly distribution rate, the annualized distribution rate at October 31, 2024 was 8.38% at NAV and 8.79% at market price. For the twelve-month period ended October 31, 2024, 63.00% of the distributions were characterized as ordinary income and 37.00% of the distributions were characterized as return of capital. The final determination of the source and tax status of all 2024 distributions will
Page 4
Portfolio Commentary (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Annual Report
October 31, 2024 (Unaudited)
be made after the end of 2024 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.
Market and Fund Outlook
Despite the economic resilience experienced through the tightening cycle to date, the Fund maintains a conservative stance as it relates to credit. Specifically, this includes underweighting potentially higher beta parts of the market, including consumer finance, regional banks and real estate investment trusts. The potential for further interest rate cuts by the Fed and the strong market technical within preferred and hybrids offer the potential for additional spread tightening. However, the uncertainty of interest rate trends leads us to conclude that near term returns will likely be driven by income. Looking at the longer horizon, we believe the market for preferred and hybrid securities is presenting attractive valuation for investors relative to other fixed income. This is attributed primarily to the historically attractive yields and discounts to par compared to other fixed income asset classes. Nonetheless, we respect the potential for near term financial market and interest rate volatility given recent Fed actions and comments, the U.S. election results and geopolitical conflicts, and would use any pullback as an opportunity to add preferred and hybrid securities exposure. The Fund's discount to NAV and high distribution income may be attractive to investors who are seeking income and the potential for capital appreciation. Additionally, a future decline in the secured overnight financing rates may lower funding costs and result in an increased distribution for the Fund.
Page 5
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments
October 31, 2024
 
Shares
Description
Stated
Rate
Stated
Maturity
Value
$25 PAR PREFERRED SECURITIES - 19.7%
Automobiles - 0.3%
6,312
Ford Motor Co.
6.00
%
12/01/59
$154,328
129,425
Ford Motor Co. (a)
6.50
%
08/15/62
3,239,508
3,393,836
Banks - 0.7%
100,382
Bank of America Corp., Series KK (b)
5.38
%
(c)
2,427,237
117,125
Pinnacle Financial Partners, Inc., Series B (b)
6.75
%
(c)
2,916,412
31,006
US Bancorp, Series K (b)
5.50
%
(c)
772,049
78,651
Wintrust Financial Corp., Series E (b) (d)
6.88
%
(c)
1,978,073
8,093,771
Capital Markets - 3.4%
29,434
Affiliated Managers Group, Inc.
4.75
%
09/30/60
580,438
152,344
Affiliated Managers Group, Inc.
4.20
%
09/30/61
2,666,020
344,626
Affiliated Managers Group, Inc. (b)
6.75
%
03/30/64
8,853,442
82,679
Brookfield Oaktree Holdings, LLC, Series A (b)
6.63
%
(c)
2,019,021
21,199
Brookfield Oaktree Holdings, LLC, Series B (b)
6.55
%
(c)
499,236
472,118
Carlyle Finance LLC (b)
4.63
%
05/15/61
9,225,186
23,528
DigitalBridge Group, Inc., Series I (b)
7.15
%
(c)
594,553
1,939
DigitalBridge Group, Inc., Series J
7.13
%
(c)
48,378
182,892
KKR Group Finance Co., IX LLC
4.63
%
04/01/61
3,584,683
171,647
Morgan Stanley, Series Q (b)
6.63
%
(c)
4,531,481
325,578
TPG Operating Group II, L.P. (b)
6.95
%
03/15/64
8,435,726
41,038,164
Diversified REITs - 0.2%
100,213
Global Net Lease, Inc., Series A (a)
7.25
%
(c)
2,282,852
Diversified Telecommunication Services - 0.2%
123,555
AT&T, Inc., Series C (b)
4.75
%
(c)
2,545,233
Electric Utilities - 1.6%
80,787
SCE Trust IV, Series J (b) (d)
5.38
%
(c)
1,987,360
63,500
SCE Trust V, Series K (b) (d)
5.45
%
(c)
1,571,625
36,277
SCE Trust VI
5.00
%
(c)
747,669
367,009
SCE Trust VII, Series M (b)
7.50
%
(c)
9,795,470
176,540
SCE Trust VIII, Series N (b)
6.95
%
(c)
4,678,310
18,780,434
Financial Services - 0.9%
434,392
Equitable Holdings, Inc., Series A (b)
5.25
%
(c)
9,986,672
9,746
Jackson Financial, Inc. (d)
8.00
%
(c)
264,117
10,250,789
Food Products - 0.1%
38,349
CHS, Inc., Series 3 (b)
6.75
%
(c)
971,764
Gas Utilities - 0.5%
281,492
South Jersey Industries, Inc.
5.63
%
09/16/79
5,366,645
Independent Power & Renewable Electricity Producers - 0.6%
245,850
Brookfield BRP Holdings Canada, Inc.
4.63
%
(c)
4,331,877
161,321
Brookfield Renewable Partners, L.P., Series 17 (b)
5.25
%
(c)
3,269,977
7,601,854
Insurance - 7.5%
436,714
AEGON Funding Co., LLC (b)
5.10
%
12/15/49
9,489,795
See Notes to Financial Statements
Page 6
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Shares
Description
Stated
Rate
Stated
Maturity
Value
$25 PAR PREFERRED SECURITIES (Continued)
Insurance (Continued)
591,577
American National Group, Inc., Series A (b) (d)
5.95
%
(c)
$14,860,414
256,658
American National Group, Inc., Series B (b) (d)
6.63
%
(c)
6,516,547
193,648
AmTrust Financial Services, Inc.
7.25
%
06/15/55
3,195,192
210,480
AmTrust Financial Services, Inc.
7.50
%
09/15/55
3,472,920
115,093
Arch Capital Group Ltd., Series G (b)
4.55
%
(c)
2,331,784
12,210
Argo Group International Holdings, Inc. (d)
7.00
%
(c)
305,128
65,878
Aspen Insurance Holdings Ltd. (b)
5.63
%
(c)
1,357,087
346,650
Aspen Insurance Holdings Ltd. (b)
5.63
%
(c)
7,255,385
296,950
Athene Holding Ltd. (b) (d)
7.25
%
03/30/64
7,646,463
85,163
Athene Holding Ltd., Series A (b) (d)
6.35
%
(c)
2,135,036
467,831
Athene Holding Ltd., Series E (b) (d)
7.75
%
(c)
12,533,193
115,661
CNO Financial Group, Inc. (a)
5.13
%
11/25/60
2,511,000
415,053
F&G Annuities & Life, Inc. (b)
7.95
%
12/15/53
11,272,839
193,528
Phoenix Cos. (The), Inc.
7.45
%
01/15/32
3,505,276
92,716
RenaissanceRe Holdings Ltd., Series G
4.20
%
(c)
1,703,193
90,091,252
Multi-Utilities - 0.7%
109,090
Algonquin Power & Utilities Corp., Series 19-A, 3 Mo. CME Term
SOFR + CSA + 4.01% (a) (b) (e)
8.86
%
07/01/79
2,802,522
195,763
Brookfield Infrastructure Finance ULC
5.00
%
05/24/81
3,795,844
81,694
Brookfield Infrastructure Partners, L.P., Series 13
5.13
%
(c)
1,635,514
113
Sempra
5.75
%
07/01/79
2,805
8,236,685
Real Estate Management & Development - 0.8%
299,424
Brookfield Property Partners, L.P., Series A
5.75
%
(c)
4,278,769
352,743
Brookfield Property Partners, L.P., Series A2
6.38
%
(c)
5,675,635
9,954,404
Specialized REITs - 0.0%
17,466
National Storage Affiliates Trust, Series A (b)
6.00
%
(c)
403,115
Wireless Telecommunication Services - 2.2%
179,788
United States Cellular Corp.
6.25
%
09/01/69
4,219,624
502,374
United States Cellular Corp. (a) (b)
5.50
%
03/01/70
11,313,462
503,729
United States Cellular Corp. (a) (b)
5.50
%
06/01/70
11,333,903
26,866,989
Total $25 Par Preferred Securities
235,877,787
(Cost $248,156,640)
$1,000 PAR PREFERRED SECURITIES - 3.8%
Banks - 3.8%
10,096
Bank of America Corp., Series L
7.25
%
(c)
12,468,560
26,803
Wells Fargo & Co., Series L
7.50
%
(c)
33,098,489
Total $1,000 Par Preferred Securities
45,567,049
(Cost $49,036,875)
$1,000,000 PAR PREFERRED SECURITIES - 1.0%
Mortgage REITs - 1.0%
12
FT Real Estate Securities Co., Inc. (f) (g) (h)
9.50
%
(c)
12,600,000
(Cost $15,990,000)
See Notes to Financial Statements
Page 7
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Par
Amount
Description
Stated
Rate
Stated
Maturity
Value
CAPITAL PREFERRED SECURITIES - 122.8%
Banks - 65.5%
$7,900,000
Banco Bilbao Vizcaya Argentaria S.A. (d) (i)
9.38
%
(c)
$8,573,617
11,900,000
Banco Bilbao Vizcaya Argentaria S.A., Series 9 (b) (d) (i)
6.50
%
(c)
11,932,320
3,300,000
Banco de Credito e Inversiones S.A. (d) (i) (j)
8.75
%
(c)
3,488,724
2,000,000
Banco de Credito e Inversiones S.A. (d) (i) (k)
8.75
%
(c)
2,114,378
5,700,000
Banco Mercantil del Norte S.A. (d) (i) (j)
7.50
%
(c)
5,610,324
8,000,000
Banco Mercantil del Norte S.A. (d) (i) (j)
7.63
%
(c)
7,944,395
7,400,000
Banco Mercantil del Norte S.A. (d) (i) (j)
8.38
%
(c)
7,612,225
10,800,000
Banco Santander S.A. (d) (i)
4.75
%
(c)
10,259,040
26,800,000
Banco Santander S.A. (b) (d) (i)
9.63
%
(c)
29,363,747
11,400,000
Banco Santander S.A. (b) (d) (i)
9.63
%
(c)
13,157,401
29,385,000
Bank of America Corp., Series TT (b) (d)
6.13
%
(c)
29,921,685
21,040,000
Bank of Montreal (b) (d)
7.70
%
05/26/84
22,057,116
16,100,000
Bank of Montreal (d)
7.30
%
11/26/84
16,791,334
16,920,000
Bank of Nova Scotia (The) (d)
8.63
%
10/27/82
18,167,427
19,466,000
Bank of Nova Scotia (The) (d)
8.00
%
01/27/84
20,614,611
1,300,000
Barclays PLC (d) (i)
4.38
%
(c)
1,150,410
34,000,000
Barclays PLC (b) (d) (i)
8.00
%
(c)
35,227,672
8,700,000
Barclays PLC (b) (d) (i)
9.63
%
(c)
9,595,047
8,550,000
BBVA Bancomer S.A. (a) (d) (i) (j)
5.88
%
09/13/34
8,091,663
9,900,000
BBVA Bancomer S.A. (d) (i) (j)
8.45
%
06/29/38
10,418,423
12,800,000
BNP Paribas S.A. (d) (i) (j)
4.63
%
(c)
10,838,538
3,000,000
BNP Paribas S.A. (d) (i) (j)
7.38
%
(c)
3,034,554
17,710,000
BNP Paribas S.A. (b) (d) (i) (j)
7.75
%
(c)
18,385,371
5,100,000
BNP Paribas S.A. (b) (d) (i) (j)
8.00
%
(c)
5,316,220
23,200,000
BNP Paribas S.A. (b) (d) (i) (j)
8.50
%
(c)
24,281,664
4,000,000
BNP Paribas S.A. (b) (d) (i) (j)
9.25
%
(c)
4,324,052
1,200,000
Citigroup, Inc., Series AA (b) (d)
7.63
%
(c)
1,279,820
6,000,000
Citigroup, Inc., Series BB (b) (d)
7.20
%
(c)
6,259,518
8,100,000
Citigroup, Inc., Series DD (b) (d)
7.00
%
(c)
8,592,634
200,000
Citigroup, Inc., Series P (b) (d)
5.95
%
(c)
199,531
2,314,000
Citigroup, Inc., Series X (b) (d)
3.88
%
(c)
2,242,173
21,800,000
Citigroup, Inc., Series Z (b) (d)
7.38
%
(c)
22,849,387
6,500,000
Citizens Financial Group, Inc., Series F (b) (d)
5.65
%
(c)
6,457,839
607,000
Citizens Financial Group, Inc., Series G (d)
4.00
%
(c)
576,864
4,000,000
CoBank ACB (b) (d)
7.25
%
(c)
4,166,892
12,651,000
CoBank ACB, Series I (b) (d)
6.25
%
(c)
12,633,235
6,895,000
CoBank ACB, Series K (b) (d)
6.45
%
(c)
6,942,693
23,500,000
Credit Agricole S.A. (d) (i) (j)
6.70
%
(c)
22,900,315
2,000,000
Farm Credit Bank of Texas (b) (d)
7.75
%
(c)
2,098,880
3,450,000
Farm Credit Bank of Texas, Series 3 (a) (d) (j)
6.20
%
(c)
3,432,750
4,706,000
Fifth Third Bancorp, Series L (b) (d)
4.50
%
(c)
4,647,257
10,000,000
HSBC Holdings PLC (b) (d) (i)
6.88
%
(c)
10,067,380
15,000,000
HSBC Holdings PLC (d) (i)
6.95
%
(c)
14,974,710
25,100,000
HSBC Holdings PLC (b) (d) (i)
8.00
%
(c)
26,399,126
4,400,000
ING Groep N.V. (d) (i) (k)
7.25
%
(c)
4,405,390
9,815,000
ING Groep N.V. (b) (d) (i) (k)
7.50
%
(c)
10,067,245
7,085,000
ING Groep N.V. (b) (d) (i) (k)
8.00
%
(c)
7,495,817
28,550,000
Intesa Sanpaolo S.p.A. (b) (d) (i) (j)
7.70
%
(c)
28,581,324
30,600,000
JPMorgan Chase & Co., Series NN (b) (d)
6.88
%
(c)
32,410,938
24,067,000
Lloyds Banking Group PLC (b) (d) (i)
8.00
%
(c)
25,141,808
10,150,000
NatWest Group PLC (b) (d) (i)
8.00
%
(c)
10,286,873
4,500,000
NatWest Group PLC (d) (i)
8.13
%
(c)
4,833,288
9,934,000
PNC Financial Services Group (The), Inc., Series U (b) (d)
6.00
%
(c)
9,969,693
8,636,000
PNC Financial Services Group (The), Inc., Series V (b) (d)
6.20
%
(c)
8,729,761
14,390,000
PNC Financial Services Group (The), Inc., Series W (b) (d)
6.25
%
(c)
14,441,746
See Notes to Financial Statements
Page 8
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Par
Amount
Description
Stated
Rate
Stated
Maturity
Value
CAPITAL PREFERRED SECURITIES (Continued)
Banks (Continued)
$16,000,000
Royal Bank of Canada (b) (d)
7.50
%
05/02/84
$16,863,725
9,800,000
Royal Bank of Canada (d)
6.35
%
11/24/84
9,469,250
20,300,000
Societe Generale S.A. (b) (d) (i) (j)
9.38
%
(c)
21,281,708
8,000,000
Societe Generale S.A. (b) (d) (i) (j)
10.00
%
(c)
8,544,272
65,000
Standard Chartered PLC (d) (k)
7.01
%
(c)
69,273
8,500,000
Standard Chartered PLC (b) (d) (i) (j)
7.88
%
(c)
8,852,750
5,660,000
Sumitomo Mitsui Financial Group, Inc. (d) (i)
6.60
%
(c)
5,867,728
1,000,000
Swedbank AB (d) (i) (k)
7.63
%
(c)
1,030,595
7,400,000
Swedbank AB (d) (i) (k)
7.75
%
(c)
7,719,125
19,960,000
Toronto-Dominion Bank (The) (a) (d)
8.13
%
10/31/82
21,080,854
1,200,000
Toronto-Dominion Bank (The) (d)
7.25
%
07/31/84
1,231,153
17,277,000
Wells Fargo & Co. (b) (d)
6.85
%
(c)
17,856,004
13,000,000
Wells Fargo & Co. (b) (d)
7.63
%
(c)
14,004,822
785,228,104
Capital Markets - 8.0%
9,300,000
Ares Finance Co. III LLC (a) (b) (d) (j)
4.13
%
06/30/51
8,892,833
1,500,000
Charles Schwab (The) Corp., Series H (d)
4.00
%
(c)
1,308,703
660,000
Charles Schwab (The) Corp., Series I (d)
4.00
%
(c)
634,225
2,200,000
Charles Schwab (The) Corp., Series K (b) (d)
5.00
%
(c)
2,148,722
28,250,000
Credit Suisse Group AG, Claim (l) (m)
3,107,500
6,400,000
Credit Suisse Group AG, Claim (l) (m)
704,000
15,730,000
Credit Suisse Group AG, Claim (l) (m)
1,730,300
19,220,000
Credit Suisse Group AG, Claim (l) (m)
2,114,200
20,500,000
Deutsche Bank AG, Series 2020 (b) (d) (i)
6.00
%
(c)
20,090,578
7,900,000
Goldman Sachs Group (The), Inc., Series W (b) (d)
7.50
%
(c)
8,465,916
17,496,000
Goldman Sachs Group (The), Inc., Series X (b) (d)
7.50
%
(c)
18,389,144
9,900,000
Goldman Sachs Group (The), Inc., Series Y (b) (d)
6.13
%
(c)
9,844,121
8,064,000
State Street Corp., Series I (b) (d)
6.70
%
(c)
8,322,161
10,130,000
State Street Corp., Series J (b) (d)
6.70
%
(c)
10,429,564
96,181,967
Construction Materials - 0.7%
7,800,000
Cemex S.A.B. de C.V. (d) (j)
9.13
%
(c)
8,308,716
Electric Utilities - 6.4%
11,170,000
American Electric Power Co., Inc. (a) (b) (d)
6.95
%
12/15/54
11,719,262
8,130,000
American Electric Power Co., Inc. (a) (d)
7.05
%
12/15/54
8,435,647
7,950,000
American Electric Power Co., Inc. (a) (b) (d)
3.88
%
02/15/62
7,539,638
7,600,000
Duke Energy Corp. (a) (d)
6.45
%
09/01/54
7,743,427
6,976,000
Emera, Inc., Series 16-A (a) (d)
6.75
%
06/15/76
7,010,761
13,000,000
Entergy Corp. (b) (d)
7.13
%
12/01/54
13,323,427
7,140,000
EUSHI Finance, Inc. (b) (d) (j)
7.63
%
12/15/54
7,410,942
13,465,000
NextEra Energy Capital Holdings, Inc. (b) (d)
6.75
%
06/15/54
14,133,322
77,316,426
Financial Services - 3.4%
15,000,000
American AgCredit Corp. (b) (d) (j)
5.25
%
(c)
14,700,000
9,350,000
Capital Farm Credit ACA, Series 1 (b) (d) (j)
5.00
%
(c)
9,116,260
3,800,000
Compeer Financial ACA (b) (d) (j)
4.88
%
(c)
3,686,000
13,150,000
Corebridge Financial, Inc. (a) (b) (d)
6.88
%
12/15/52
13,466,122
40,968,382
Food Products - 4.4%
6,000,000
Dairy Farmers of America, Inc. (b) (f)
7.13
%
(c)
5,760,000
See Notes to Financial Statements
Page 9
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Par
Amount
Description
Stated
Rate
Stated
Maturity
Value
CAPITAL PREFERRED SECURITIES (Continued)
Food Products (Continued)
$7,329,000
Land O'Lakes Capital Trust I (a) (b) (f)
7.45
%
03/15/28
$7,244,158
10,000,000
Land O'Lakes, Inc. (a) (b) (j)
7.25
%
(c)
8,490,067
33,000,000
Land O'Lakes, Inc. (b) (j)
8.00
%
(c)
30,937,500
52,431,725
Gas Utilities - 0.6%
6,820,000
AltaGas Ltd. (a) (d) (j)
7.20
%
10/15/54
6,854,018
Independent Power & Renewable Electricity Producers - 0.9%
10,200,000
AES (The) Corp. (b) (d)
7.60
%
01/15/55
10,576,994
Insurance - 13.8%
3,000,000
Aegon Ltd. (a) (d)
5.50
%
04/11/48
2,972,501
17,585,000
Assurant, Inc. (a) (b) (d)
7.00
%
03/27/48
17,892,046
5,150,000
Assured Guaranty Municipal Holdings, Inc. (a) (d) (j)
6.40
%
12/15/66
4,713,442
11,232,000
AXIS Specialty Finance LLC (a) (b) (d)
4.90
%
01/15/40
10,700,676
4,000,000
CNP Assurances SACA (d) (i) (k)
4.88
%
(c)
3,574,180
6,834,000
Enstar Finance LLC (a) (d)
5.50
%
01/15/42
6,417,993
15,300,000
Fortegra Financial Corp. (a) (b) (d) (f)
8.50
%
10/15/57
15,606,000
22,122,000
Global Atlantic Fin Co. (a) (d) (j)
4.70
%
10/15/51
21,227,228
8,499,000
Global Atlantic Fin Co. (a) (b) (d) (j)
7.95
%
10/15/54
8,839,749
29,237,000
Hartford Financial Services Group (The), Inc., 3 Mo. CME Term
SOFR + CSA + 2.13% (a) (b) (e) (j)
7.50
%
02/12/47
27,191,822
8,183,000
Kuvare US Holdings, Inc. (b) (d) (j)
7.00
%
02/17/51
8,234,146
2,000,000
La Mondiale SAM (d) (k)
5.88
%
01/26/47
2,004,908
9,500,000
Lancashire Holdings Ltd. (b) (d) (k)
5.63
%
09/18/41
8,900,906
11,204,000
Liberty Mutual Group, Inc. (a) (b) (d) (j)
4.13
%
12/15/51
10,575,576
2,465,000
Liberty Mutual Group, Inc. (j)
4.30
%
02/01/61
1,623,792
2,500,000
Lincoln National Corp., Series C (d)
9.25
%
(c)
2,727,262
2,442,000
Nationwide Financial Services Capital Trust (a) (m)
7.90
%
03/01/37
2,698,410
2,910,000
Nationwide Financial Services, Inc. (a) (b)
6.75
%
05/15/37
2,986,155
6,273,000
Prudential Financial, Inc. (a) (d)
6.00
%
09/01/52
6,382,251
165,269,043
Multi-Utilities - 6.8%
18,948,000
Algonquin Power & Utilities Corp. (a) (b) (d)
4.75
%
01/18/82
17,757,473
5,000,000
CenterPoint Energy, Inc., Series A (b) (d)
7.00
%
02/15/55
5,125,505
450,000
CenterPoint Energy, Inc., Series B (d)
6.85
%
02/15/55
462,398
9,200,000
Dominion Energy, Inc., Series A (b) (d)
6.88
%
02/01/55
9,632,261
5,100,000
Dominion Energy, Inc., Series B (a) (d)
7.00
%
06/01/54
5,439,155
7,000,000
NiSource, Inc. (b) (d)
6.38
%
03/31/55
7,004,374
21,129,000
Sempra (a) (b) (d)
4.13
%
04/01/52
20,146,778
7,500,000
Sempra (b) (d)
6.40
%
10/01/54
7,492,346
8,028,000
Sempra (a) (b) (d)
6.88
%
10/01/54
8,190,013
81,250,303
Oil, Gas & Consumable Fuels - 11.5%
27,810,000
Enbridge, Inc. (a) (b) (d)
6.25
%
03/01/78
27,343,401
2,500,000
Enbridge, Inc. (b) (d)
7.63
%
01/15/83
2,656,137
8,800,000
Enbridge, Inc. (b) (d)
8.50
%
01/15/84
9,799,161
11,890,000
Enbridge, Inc., Series 16-A (b) (d)
6.00
%
01/15/77
11,787,898
15,150,000
Enbridge, Inc., Series 20-A (b) (d)
5.75
%
07/15/80
14,736,494
2,543,000
Energy Transfer, L.P., Series B (b) (d)
6.63
%
(c)
2,498,825
4,476,000
Energy Transfer, L.P., Series F (b) (d)
6.75
%
(c)
4,469,068
20,255,000
Energy Transfer, L.P., Series G (b) (d)
7.13
%
(c)
20,640,048
7,145,000
Energy Transfer, L.P., Series H (b) (d)
6.50
%
(c)
7,140,337
See Notes to Financial Statements
Page 10
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Par
Amount
Description
Stated
Rate
Stated
Maturity
Value
CAPITAL PREFERRED SECURITIES (Continued)
Oil, Gas & Consumable Fuels (Continued)
$21,650,000
Transcanada Trust (a) (b) (d)
5.50
%
09/15/79
$20,878,782
6,450,000
Transcanada Trust (a) (b) (d)
5.60
%
03/07/82
6,164,989
9,800,000
Venture Global LNG, Inc. (b) (d) (j)
9.00
%
(c)
9,805,538
137,920,678
Retail REITs - 0.5%
6,450,000
Scentre Group Trust 2 (a) (b) (d) (j)
5.13
%
09/24/80
6,328,085
Trading Companies & Distributors - 0.3%
3,384,000
Air Lease Corp., Series D (d)
6.00
%
(c)
3,341,567
Total Capital Preferred Securities
1,471,976,008
(Cost $1,487,303,075)
 
Total Investments - 147.3%
1,766,020,844
(Cost $1,800,486,590)
Shares
Description
Value
REVERSE REPURCHASE AGREEMENT - (8.3)%
(100,000,000
)
Scotia Bank, due 1/23/25, 1 month CME Term SOFR + CSA + 65bps
(100,000,000
)
Outstanding Loan - (40.3)%
(483,400,000
)
Net Other Assets and Liabilities - 1.3%
16,253,365
Net Assets - 100.0%
$1,198,874,209
 
(a)
This security or a portion of this security is segregated as collateral for reverse repurchase agreements. All of these securities are
corporate bonds. The remaining contractual maturity of the agreement is between 30-90 days. At October 31, 2024, securities
noted as such are valued at $216,522,602.
(b)
All or a portion of this security serves as collateral on the outstanding loan. At October 31, 2024, the segregated value of these
securities amounts to $919,995,491.
(c)
Perpetual maturity.
(d)
Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at October 31, 2024. At
a predetermined date, the fixed rate will change to a floating rate or a variable rate.
(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 (see Note 2D - Restricted Securities in the Notes to Financial Statements).
(g)
This security is fair valued by the Advisor's Pricing Committee in accordance with procedures approved by the Fund's Board of
Trustees, and in accordance with the provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At
October 31, 2024, securities noted as such are valued at $12,600,000 or 1.0% of net assets.
(h)
This security's value was determined using significant unobservable inputs. (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements).
(i)
This security is a contingent convertible capital security which may be subject to conversion into common stock of the issuer
under certain circumstances. At October 31, 2024, securities noted as such amounted to $472,833,997 or 26.5% of managed
assets. Of these securities, 9.6% originated in emerging markets, and 90.4% originated in foreign markets.
(j)
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.
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 October 31, 2024, securities noted as such amounted to $399,874,986 or 33.4% of net assets.
(k)
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the 1933 Act.
(l)
Claim pending with the administrative court of Switzerland.
(m)
Pursuant to procedures adopted by the Fund's Board of Trustees, this security has been determined to be illiquid by the
Sub-Advisor.
 
See Notes to Financial Statements
Page 11
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
Abbreviations throughout the Portfolio of Investments:
CME
- Chicago Mercantile Exchange
CSA
- Credit Spread Adjustment
REITs
- Real Estate Investment Trusts
SOFR
- Secured Overnight Financing Rate
Valuation Inputs
A summary of the inputs used to value the Fund's investments as of October 31, 2024 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): 
ASSETS TABLE
Total
Value at
10/31/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
$25 Par Preferred Securities:
Gas Utilities
$5,366,645
$-
$5,366,645
$-
Insurance
90,091,252
79,917,864
10,173,388
-
Other Industry Categories*
140,419,890
140,419,890
-
-
$1,000 Par Preferred Securities*
45,567,049
45,567,049
-
-
$1,000,000 Par Preferred Securities*
12,600,000
-
-
12,600,000
Capital Preferred Securities*
1,471,976,008
-
1,471,976,008
-
Total Investments
$1,766,020,844
$265,904,803
$1,487,516,041
$12,600,000
 
LIABILITIES TABLE
Total
Value at
10/31/2024
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Reverse Repurchase Agreement
$(100,000,000
)
$-
$(100,000,000
)
$-
 
*
See Portfolio of Investments for industry breakout.
Level 3 Investments are fair valued by the Advisor's Pricing Committee and are footnoted in the Portfolio of Investments. All Level 3 values are based on unobservable and non-quantitative inputs.
See Notes to Financial Statements
Page 12
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Portfolio of Investments (Continued)
October 31, 2024
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, 2023
$1,000,000 Par Preferred Securities
$12,480,000
Net Realized Gain (Loss)
-
Net Change in Unrealized Appreciation/Depreciation
120,000
Purchases
-
Sales
-
Transfers In
-
Transfers Out
-
Ending Balance at October 31, 2024
$1,000,000 Par Preferred Securities
12,600,000
Total Level 3 holdings
$12,600,000
 
There was a net change of $120,000 in unrealized appreciation (depreciation) from Level 3 investments held as of October 31, 2024.
See Notes to Financial Statements
Page 13
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statement of Assets and Liabilities
October 31, 2024
 
ASSETS:
Investments, at value
$ 1,766,020,844
Cash
14,306,586
Foreign currency
12,075
Receivables:
Interest
20,356,137
Investment securities sold
228,434
Dividends
93,552
Prepaid expenses
8,960
Total Assets
1,801,026,588
LIABILITIES:
Outstanding loan
483,400,000
Reverse repurchase agreement
100,000,000
Payables:
Investment securities purchased
14,318,928
Interest and fees on loan and reverse repurchase agreement
2,901,512
Investment advisory fees
1,297,998
Shareholder reporting fees
67,229
Administrative fees
64,256
Custodian fees
48,847
Audit and tax fees
47,566
Trustees' fees and expenses
2,457
Transfer agent fees
1,627
Legal fees
1,106
Financial reporting fees
771
Other liabilities
82
Total Liabilities
602,152,379
NET ASSETS
$1,198,874,209
NET ASSETS consist of:
Paid-in capital
$ 1,382,044,859
Par value
608,478
Accumulated distributable earnings (loss)
(183,779,128
)
NET ASSETS
$1,198,874,209
NET ASSET VALUE,per Common Share (par value $0.01 per Common Share)
$19.70
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)
60,847,827
Investments, at cost
$1,800,486,590
Foreign currency, at cost (proceeds)
$12,061
See Notes to Financial Statements
Page 14
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statement of Operations
For the Year Ended October 31, 2024
 
INVESTMENT INCOME:
Interest
$ 98,083,082
Dividends
 20,930,966
Foreign withholding tax
(1,226,177
)
Other
 1,369
Total investment income
117,789,240
EXPENSES:
Interest and fees on loan and repurchase agreement
 35,398,138
Investment advisory fees
 14,666,353
Legal fees
 471,749
Administrative fees
 267,228
Shareholder reporting fees
 249,140
Custodian fees
 157,930
Audit and tax fees
 62,408
Listing expense
 59,015
Trustees' fees and expenses
 48,392
Transfer agent fees
 24,017
Financial reporting fees
 9,250
Other
 15,907
Total expenses
51,429,527
NET INVESTMENT INCOME (LOSS)
66,359,713
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments
(2,986,459
)
Foreign currency transactions
182
Net realized gain (loss)
(2,986,277
)
Net change in unrealized appreciation (depreciation) on:
Investments
213,408,973
Foreign currency translation
14
Net change in unrealized appreciation (depreciation)
 213,408,987
NET REALIZED AND UNREALIZED GAIN (LOSS)
210,422,710
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$ 276,782,423
See Notes to Financial Statements
Page 15
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statements of Changes in Net Assets
 
Year
Ended
10/31/2024
Year
Ended
10/31/2023
OPERATIONS:
Net investment income (loss)
$ 66,359,713
$ 69,447,941
Net realized gain (loss)
 (2,986,277
)
 (91,749,105
)
Net change in unrealized appreciation (depreciation)
 213,408,987
 (1,209,669
)
Net increase (decrease) in net assets resulting from operations
276,782,423
(23,510,833
)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
 (68,079,843
)
 (66,905,271
)
Return of capital
 (30,493,637
)
 (12,805,383
)
Total distributions to shareholders
(98,573,480
)
(79,710,654
)
Total increase (decrease) in net assets
 178,208,943
 (103,221,487
)
NET ASSETS:
Beginning of period
 1,020,665,266
 1,123,886,753
End of period
$ 1,198,874,209
$ 1,020,665,266
COMMON SHARES:
Common Shares at end of period
60,847,827
60,847,827
See Notes to Financial Statements
Page 16
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Statement of Cash Flows
For the Year Ended October 31, 2024
 
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations
$276,782,423
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash
provided by operating activities:
Purchases of investments
(668,313,914
)
Sales, maturities and paydown of investments
679,783,331
Net amortization/accretion of premiums/discounts on investments
(46,295
)
Net realized gain/loss on investments
2,986,459
Net change in unrealized appreciation/depreciation on investments
(213,408,973
)
Changes in assets and liabilities:
Increase in interest receivable
(1,092,800
)
Decrease in reclaims receivable
111,234
Decrease in dividends receivable
446,352
Increase in prepaid expenses
(8,960
)
Decrease in interest and fees payable on loan and reverse repurchase agreement
(182,878
)
Increase in investment advisory fees payable
153,928
Increase in audit and tax fees payable
8,929
Decrease in legal fees payable
(1,143
)
Increase in shareholder reporting fees payable
8,965
Decrease in administrative fees payable
(370,221
)
Increase in custodian fees payable
20,899
Increase in trustees' fees and expenses payable
2,457
Decrease in other liabilities payable
(10,139
)
Cash provided by operating activities
$76,869,654
Cash flows from financing activities:
Distributions to Common Shareholders from investment operations
(68,079,843
)
Distributions to Common Shareholders from return of capital
(30,493,637
)
Repayment of borrowing
(113,500,000
)
Proceeds from borrowing
143,700,000
Cash used in financing activities
(68,373,480
)
Increase in cash and foreign currency
8,496,174
Cash and foreign currency at beginning of period
5,822,487
Cash and foreign currency at end of period
$14,318,661
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees
$35,581,016
See Notes to Financial Statements
Page 17
First Trust Intermediate Duration Preferred & Income Fund (FPF)
Financial Highlights
For a Common Share outstanding throughout each period
 
Year Ended October 31,
2024
2023
2022
2021
2020
Net asset value, beginning of period
$ 16.77
$ 18.47
$ 24.93
$ 22.66
$ 24.40
Income from investment operations:
Net investment income (loss)
1.09
 (a)
1.14
 (a)
1.43
1.58
1.56
Net realized and unrealized gain (loss)
3.46
(1.53
)
(6.39
)
2.22
(1.71
)
Total from investment operations
4.55
(0.39
)
(4.96
)
3.80
(0.15
)
Distributions paid to shareholders from:
Net investment income
(1.12
)
(1.10
)
(1.40
)
(1.48
)
(1.45
)
Return of capital
(0.50
)
(0.21
)
(0.10
)
(0.05
)
(0.14
)
Total distributions paid to Common Shareholders
(1.62
)
(1.31
)
(1.50
)
(1.53
)
(1.59
)
Net asset value, end of period
$19.70
$16.77
$18.47
$24.93
$22.66
Market value, end of period
$18.78
$14.23
$16.39
$25.48
$21.56
Total return based on net asset value(b)
28.75
%
(1.56
)%
(20.30
)%
17.25
%
(0.05
)%
Total return based on market value(b)
44.64
%
(5.86
)%
(30.77
)%
25.89
%
(3.60
)%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)
$ 1,198,874
$ 1,020,665
$ 1,123,887
$ 1,516,364
$ 1,376,701
Ratio of total expenses to average net assets
4.47
%
4.34
%
2.22
%
1.72
%
1.98
%
Ratio of total expenses to average net assets
excluding interest expense
1.39
%
1.42
%
1.35
%
1.33
%
1.31
%
Ratio of net investment income (loss) to average net
assets
5.77
%
6.32
%
6.59
%
6.44
%
6.93
%
Portfolio turnover rate
40
%
39
%
25
%
39
%
45
%
Indebtedness:
Total loan and reverse repurchase agreement
outstanding (in 000's)
$ 583,400
$ 553,200
$ 549,600
$ 676,000
$ 616,000
Asset coverage per $1,000 of indebtedness (c)
$ 3,055
$ 2,845
$ 3,045
$ 3,243
$ 3,235
Total loan outstanding (in 000's)
$ 483,400
$ 453,200
$ 449,600
$ 576,000
$ 516,000
Asset coverage per $1,000 of indebtedness (d)
$ 3,480
$ 3,252
$ 3,500
$ 3,633
$ 3,668
 
(a)
Based on average shares outstanding.
(b)
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 net asset value per share for net asset value 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.
(c)
Calculated by subtracting the Fund's total liabilities (not including the loan and reverse repurchase agreement outstanding) from
the Fund's total assets, and dividing by the outstanding loan and reverse repurchase agreement balances in 000's.
(d)
Calculated by subtracting the Fund's total liabilities (not including the loan outstanding) from the Fund's total assets, and dividing
by the outstanding loan balance in 000's.
See Notes to Financial Statements
Page 18
Notes to Financial Statements
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
1. Organization
First Trust Intermediate Duration Preferred & Income Fund (the "Fund") is a diversified, closed-end management investment company organized as a Massachusetts business trust on February 4, 2013, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund trades under the ticker symbol "FPF" on the New York Stock Exchange ("NYSE").
The Fund's primary investment objective is to seek a high level of current income. The Fund has a secondary objective of capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its managed assets in preferred securities and other income producing securities issued by U.S. and non-U.S. companies, including traditional preferred securities, hybrid preferred securities that have investment and economic characteristics of both preferred securities and debt securities, floating rate and fixed-to-floating rate preferred securities, debt securities, convertible securities and contingent convertible securities. There can be no assurance that the Fund will achieve its investment objectives. The Fund seeks to maintain, under normal market conditions, a duration of between three and eight years. The Fund may not be appropriate for all investors.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, "Financial Services-Investment Companies." The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
The net asset value ("NAV") of the Common Shares of the Fund is determined daily as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Domestic debt securities and foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. The Fund's NAV per Common Share is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses, dividends declared but unpaid and any borrowings of the Fund), by the total number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Fund's investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with valuation procedures approved by the Fund's Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund's investments are valued as follows:
Preferred stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq, Inc. ("Nasdaq") and the London Stock Exchange Alternative Investment Market ("AIM")) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Corporate bonds, notes and other debt securities are fair valued on the basis of valuations provided by a third-party pricing service approved by the Advisor's Pricing Committee, which may use the following valuation inputs when available:
 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.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Page 19
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor's Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended (the "1933 Act")) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund's NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security's fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer's financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
If the securities in question are foreign securities, the following additional information may be considered:
 1)
the last sale price on the exchange on which they are principally traded;
 2)
the value of similar foreign securities traded on other foreign markets;
 3)
ADR trading of similar securities;
 4)
closed-end fund or exchange-traded fund trading of similar securities;
 5)
foreign currency exchange activity;
 6)
the trading prices of financial products that are tied to baskets of foreign securities;
 7)
factors relating to the event that precipitated the pricing problem;
 8)
whether the event is likely to recur;
 9)
whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and
10)
other relevant factors.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•
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.
Page 20
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
•
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.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund's investments as of October 31, 2024, is included with the Fund's Portfolio of Investments.
B. Reverse Repurchase Agreements
Reverse repurchase agreements were utilized as leverage for the Fund. A reverse repurchase agreement, although structured as a sale and repurchase obligation, acts as financing under which Fund assets are pledged as collateral to secure a short-term loan. Generally, the other party to the agreement makes the loan in an amount equal to a percentage of the market value of the pledged collateral. At the maturity of the reverse repurchase agreement, the loan will be repaid and the collateral will correspondingly be received back by the Fund. While used as collateral, the assets continue to pay principal and interest which are for the benefit of the Fund.
Information for the year ended October 31, 2024:
Maximum amount outstanding during the period . . . . . . . . . . . . . . . . . . . . $100,000,000
Average amount outstanding during the period* . . . . . . . . . . . . . . . . . . . . . $100,000,000
* The average amount outstanding during the period was calculated by adding the borrowings at the end of each day and dividing the sum by the number of days in the year ended October 31, 2024. There was $100,000,000 outstanding at October 31, 2024, which approximates fair value.
During the fiscal year ended October 31, 2024, the interest rates ranged from 5.46% to 6.15%, with a weighted average interest rate of 6.03%, on borrowings by the Fund under reverse repurchase agreements, which had interest expense that aggregated $6,122,678. The rate as of October 31, 2024 was 5.46%
C. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Amortization of premiums and the accretion of discounts are recorded using the effective interest method.
The Fund may hold real estate investments trusts ("REITs"). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REITs' fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods conclude.
D. Restricted Securities
The Fund invests in restricted securities, which are securities that may not be offered for public sale without first being registered under the 1933 Act. Prior to registration, restricted securities may only be resold in transactions exempt from registration under Rule 144A under the 1933 Act, normally to qualified institutional buyers. As of October 31, 2024, the Fund held restricted securities as shown in the following table that Stonebridge Advisors LLC ("Stonebridge" or the "Sub-Advisor") has deemed illiquid pursuant to procedures adopted by the Fund's Board of Trustees. 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. The Fund does not have the right to demand that such securities be registered. These securities are valued according to the valuation procedures as stated in the Portfolio Valuation note (Note 2A) and are not expressed as a discount to the carrying value of a comparable unrestricted security. There are no unrestricted securities with the same maturity dates and yields for these issuers.
Page 21
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
 
Security
Acquisition
Date
Par Amount/
Shares
Current Price
Carrying
Cost
Value
% of
Net
Assets
Dairy Farmers of America, Inc.,
7.13%
9/15/16
$6,000,000
$96.00
$6,000,000
$5,760,000
0.48
%
Fortegra Financial Corp., 8.50%,
10/15/57
10/12/17 - 3/12/18
$15,300,000
102.00
15,344,293
15,606,000
1.30
FT Real Estate Securities Co., Inc.,
9.50%
6/15/16
12
1,050,000.00
15,990,000
12,600,000
1.05
Land O'Lakes Capital Trust I,
7.45%, 03/15/28
3/20/15 - 2/25/19
$7,329,000
98.84
7,562,270
7,244,158
0.60
$44,896,563
$41,210,158
3.43
%
E. Offsetting on the Statement of Assets and Liabilities
Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statement of Assets and Liabilities and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on the Fund's financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.
This disclosure, if applicable, is included within each Fund's Portfolio of Investments under the heading "Offsetting Assets and Liabilities." For financial reporting purposes, the Fund does not offset financial assets and financial liabilities that are subject to master netting arrangements ("MNAs") or similar agreements on the Statement of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.
At October 31, 2024, reverse repurchase agreement assets and liabilities (by type) on a gross basis are as follows:  
Gross Amounts not Offset
in the Statement of
Assets and Liabilities
Gross
Amounts of
Recognized
Liabilities
Gross Amounts
Offset in the
Statement of
Assets
and Liabilities
Net Amounts of
Liabilities
Presented
in the Statement
of Assets and
Liabilities
Financial
Instruments
Collateral
Amounts
Pledged
Net
Amount
Reverse Repurchase
Agreement
$ (1,000,000
)
$ -
$ (1,000,000
)
$ 1,000,000
$ -
$ -
F. Dividends and Distributions to Shareholders
Dividends from net investment income, if any, are declared and paid monthly by the Fund, or as the Board of Trustees may determine from time to time. Distributions of net realized capital gains earned by the Fund, if any, are distributed at least annually.
Distributions from income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some point in the future. Permanent differences incurred during the fiscal year ended October 31, 2024, resulting in book and tax accounting differences, have been reclassified at year end to reflect a decrease in accumulated net investment income (loss) of $453,882, an increase in accumulated net realized gain (loss) of $615,084 and a decrease to paid-in capital of $161,202. Accumulated
Page 22
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
distributable earnings (loss) consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments, and unrealized appreciation (depreciation) on investments. Net assets were not affected by this reclassification.
The tax character of distributions paid by the Fund during the fiscal years ended October 31, 2024 and 2023, was as follows:  
Distributions paid from:
2024
2023
Ordinary income
$68,079,843
$66,905,271
Capital gains
-
-
Return of capital
30,493,637
12,805,383
As of October 31, 2024, the components of distributable earnings and net assets on a tax basis were as follows: 
Undistributed ordinary income
$-
Undistributed capital gains
-
Total undistributed earnings
-
Accumulated capital and other losses
(153,400,734
)
Net unrealized appreciation (depreciation)
(30,378,394
)
Total accumulated earnings (losses)
(183,779,128
)
Other
-
Paid-in capital
1,382,653,337
Total net assets
$1,198,874,209
G. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund's taxable income exceeds the distributions from such taxable income for the calendar year.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At October 31, 2024, for federal income tax purposes, the Fund had $153,400,734 of capital loss carryforwards available, to the extent provided by regulations, to offset future capital gains.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ended 2021, 2022, 2023, and 2024 remain open to federal and state audit. As of October 31, 2024, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund's financial statements for uncertain tax positions.
As of October 31, 2024, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
$1,796,399,252
$78,234,509
$(108,612,917)
$(30,378,408)
H. Expenses
The Fund will pay all expenses directly related to its operations.
Page 23
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. 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. For these services, First Trust is entitled to a monthly fee calculated at an annual rate of 0.85% of the Fund's Managed Assets (the average daily total asset value of the Fund minus the sum of the Fund's liabilities other than the principal amount of borrowings or reverse repurchase agreements, if any). First Trust also provides fund reporting services to the Fund for a flat annual fee in the amount of $9,250.
Stonebridge, a majority-owned affiliate of First Trust, serves as the Fund's sub-advisor and manages the Fund's portfolio subject to First Trust's supervision. The Sub-Advisor receives a monthly portfolio management fee calculated at an annual rate of 0.425% of the Fund's Managed Assets that is paid by First Trust out of its investment advisory fee.
First Trust Capital Partners, LLC, an affiliate of First Trust, owns a 51% ownership interest in Stonebridge.
Effective June 3, 2024, The Bank of New York Mellon ("BNY") serves as the Fund's administrator, fund accountant, and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BNY is responsible for providing certain administrative and accounting services to the Fund, including maintaining the Fund's books of account, records of the Fund's securities transactions, and certain other books and records. As custodian, BNY is responsible for custody of the Fund's assets. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Prior to June 3, 2024, Brown Brothers Harriman & Co. ("BBH") served as the Fund's administrator, fund accountant and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BBH was responsible for providing certain administrative and accounting services to the Fund, including maintaining the Fund's books of account, records of the Fund's securities transactions, and certain other books and records. As custodian, BBH was responsible for custody of the Fund's assets.
Computershare, Inc. ("Computershare") serves as the Fund's transfer agent in accordance with certain fee arrangements. As transfer agent, Computershare is responsible for maintaining shareholder records for the Fund.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates ("Independent Trustees") is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Committee Chairs, the Audit Committee Vice Chair, the Lead Independent Trustee and the Vice Lead Independent Trustee rotate periodically in serving in such capacities. The officers and "Interested" Trustee receive no compensation from the Fund for acting in such capacities.
4. Purchases and Sales of Securities
For the fiscal year ended October 31, 2024, the cost of purchases and proceeds from sales of investments, excluding short term investments were $680,984,259 and $679,148,400, respectively.
5. Borrowings
The Fund has a credit agreement with The Bank of Nova Scotia that has a maximum commitment amount of $525,000,000. Prior to June 3, 2024, the maximum commitment amount was $725,000,000. The borrowing rate under the facility is equal to the 1-month Term SOFR plus 90 basis points. Prior to June 3, 2024, the borrowing rate under the facility was equal to the 1-month Term SOFR plus 75 basis points plus the SOFR adjustment of 10 basis points. In addition, under the facility, the Fund pays a commitment fee of 0.20% on the undrawn amount of such facility on any date that the loan balance is less than 50% of the total commitment amount. Prior to June 3, 2024, the Fund paid a commitment fee of 0.15% on the undrawn amount of such facility on any date that the loan balance was less than 50% of the total commitment amount. The average amount outstanding between November 1, 2023 and October 31, 2024, was $475,600,000 with a weighted average interest rate of 6.12%. As of October 31, 2024, the Fund had outstanding borrowings of $483,400,000, which approximates fair value, under this committed facility agreement. The borrowings are categorized as Level 2 within the fair value hierarchy. The high and low annual interest rates for the fiscal year ended October 31, 2024, were 6.25% and 5.56%, respectively. The interest rate at October 31, 2024, was 5.56%.
Page 24
Notes to Financial Statements (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024
6. Indemnification
The Fund has a variety of indemnification obligations under contracts with its service providers. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
7. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there was the following subsequent event:
The maximum commitment amount of the credit agreement with The Bank of Nova Scotia was increased to 550,000,000 on December 13, 2024.
Page 25
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of First Trust Intermediate Duration Preferred & Income Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of First Trust Intermediate Duration Preferred & Income Fund (the "Fund"), including the portfolio of investments, as of October 31, 2024, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, and the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche, LLP
Chicago, Illinois
December 23, 2024
We have served as the auditor of one or more First Trust investment companies since 2001.
Page 26
Additional Information
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
Dividend Reinvestment Plan
If your Common Shares are registered directly with the Fund or if you hold your Common Shares with a brokerage firm that participates in the Fund's Dividend Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund, to receive cash distributions, all dividends, including any capital gain distributions, on your Common Shares will be automatically reinvested by Computershare Trust Company N.A. (the "Plan Agent"), in additional Common Shares under the Plan. If you elect to receive cash distributions, you will receive all distributions in cash paid by check mailed directly to you by the Plan Agent, as the dividend paying agent.
If you decide to participate in the Plan, the number of Common Shares you will receive will be determined as follows:
(1)
If Common Shares are trading at or above net asset value ("NAV") at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date.
(2)
If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants' accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments.
You may elect to opt-out of or withdraw from the Plan at any time by giving written notice to the Plan Agent, or by telephone at (866) 340-1104, in accordance with such reasonable requirements as the Plan Agent and the Fund may agree upon. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan, and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.
The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common Shares in your account will be held by the Plan Agent in non-certificated form. The Plan Agent will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy you receive will include all Common Shares you have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.
Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Capital gains and income are realized although cash is not received by you. Consult your financial advisor for more information.
If you hold your Common Shares with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above.
The Fund reserves the right to amend or terminate the Plan if in the judgment of the Board of Trustees the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained by writing Computershare, Inc., P.O. Box 43006, Providence, RI 02940-3006.
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies and information on how the Fund voted proxies relating to portfolio investments during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891 or emailing [email protected]; (2) on the Fund's website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov.
Portfolio Holdings
The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the
Page 27
Additional Information (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
SEC's website at www.sec.gov. The Fund's complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund's Forms N-PORT and Forms N-CSR are available on the SEC's website listed above.
Federal Tax Information
For the taxable year ended October 31, 2024, the following percentages of income dividend paid by the Fund qualify for the dividends received deduction available to corporations and are hereby designated as qualified dividend income:  
Dividends Received Deduction
Qualified Dividend Income
28.03%
65.41%
A portion of the ordinary dividends (including short-term capital gains) that the Fund paid to shareholders during the taxable year ended October 31, 2024, may be eligible for the Qualified Business Income (QBI) Deduction under the Internal Revenue Code of 1986, as amended, section 199A for the aggregate dividends the Fund received from the underlying Real Estate Investment Trusts (REITs) it invests in.
NYSE Certification Information
In accordance with Section 303A-12 of the New York Stock Exchange ("NYSE") Listed Company Manual, the Fund's President has certified to the NYSE that, as of May 3, 2024, he was not aware of any violation by the Fund of NYSE corporate governance listing standards. In addition, the Fund's reports to the SEC on Form N-CSR contain certifications by the Fund's principal executive officer and principal financial officer that relate to the Fund's public disclosure in such reports and are required by Rule 30a-2 under the 1940 Act.
Submission of Matters to a Vote of Shareholders
The Fund held its Annual Meeting of Shareholders (the "Annual Meeting") on April 30, 2024. At the Annual Meeting, Thomas R. Kadlec and Richard E. Erickson were elected by the Common Shareholders of First Trust Intermediate Duration Preferred & Income Fund as Class II Trustees for a three-year term expiring at the Fund's annual meeting of shareholders in 2027. The number of votes cast in favor of Mr. Kadlec was 48,273,021 and the number of votes withheld was 1,819,591. The number of votes cast in favor of Mr. Erickson was 48,218,711 and the number of votes withheld was 1,873,901. Denise M. Keefe, Robert F. Keith, James A. Bowen, Niel B. Nielson, and Bronwyn Wright are the other current and continuing Trustees.
Advisory and Sub-Advisory Agreements
Board Considerations Regarding Approval of the Continuation of the Investment Management and Investment Sub-Advisory Agreements
The Board of Trustees of First Trust Intermediate Duration Preferred & Income Fund (the "Fund"), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the "Advisory Agreement") between the Fund and First Trust Advisors L.P. (the "Advisor") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together with the Advisory Agreement, the "Agreements") among the Fund, the Advisor and Stonebridge Advisors LLC (the "Sub-Advisor"). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2025 at a meeting held on June 2-3, 2024. The Board determined that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the "1940 Act"), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. At meetings held on April 16, 2024, April 25, 2024 and June 2-3, 2024, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate payable by the Fund and the sub-advisory fee rate as compared to fees charged to a peer group of funds (the "Expense Group") and a broad peer universe of funds (the "Expense Universe"), each assembled by Broadridge Financial
Page 28
Additional Information (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
Solutions, Inc. ("Broadridge"), an independent source, and as compared to fees charged to other clients of the Advisor and the Sub-Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund's Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund's performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the "Performance Universe"), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any indirect benefits to the Advisor and its affiliate, First Trust Capital Partners, LLC ("FTCP"), and the Sub-Advisor; and information on the Advisor's and the Sub-Advisor's compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 25, 2024, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April 25, 2024 meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 2-3, 2024 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Fund and the Advisor and among the Fund, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from the Fund's perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor and the Sub-Advisor manage the Fund.
In reviewing the Agreements, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the overall management and administration of the Fund and reviewed all of the services provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor's day-to-day management of the Fund's investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor's, the Sub-Advisor's and the Fund's compliance with the 1940 Act, as well as the Fund's compliance with its investment objectives, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board's consideration of the Advisor's services, the Advisor, in its written materials and at the April 25, 2024 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, the Board reviewed the materials provided by the Sub-Advisor and considered the services that the Sub-Advisor provides to the Fund, including the Sub-Advisor's day-to-day management of the Fund's investments. In considering the Sub-Advisor's management of the Fund, the Board noted the background and experience of the Sub-Advisor's portfolio management team, including the Board's prior meetings with members of the portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed the Fund consistent with its investment objectives, policies and restrictions.
The Board considered the advisory and sub-advisory fee rates payable under the Agreements for the services provided. The Board noted that the sub-advisory fee is paid by the Advisor from its advisory fee. The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund and non-fund clients, as applicable. With respect to the Expense Group, the Board discussed with Broadridge its methodology for assembling peer groups and discussed with the Advisor limitations in creating a relevant peer group for the Fund, including that (i) not all peer funds employ an advisor/sub-advisor management structure; and (ii) the Fund is unique in its composition, which makes assembling peers with similar strategies and asset mix difficult. The Board took these limitations into account in considering the peer data. Based on the information provided, the Board noted that the contractual advisory fee rate payable by the Fund, based on average managed assets, was above the median contractual advisory fee of the peer funds in the Expense Group. With respect to fees charged to other clients, the Board considered differences between the Fund and other clients that limited their comparability. In considering the advisory fee rate overall, the Board also considered the Advisor's statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor's demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund's performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and the Sub-Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund's performance. The Board received and reviewed information comparing the Fund's performance for periods ended December 31, 2023 to the performance of the funds in the Performance Universe and to that of a blended benchmark index. In reviewing the Fund's
Page 29
Additional Information (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
performance as compared to the performance of the Performance Universe, the Board took into account the limitations described above with respect to creating a relevant peer group for the Fund. Based on the information provided on net asset value performance, the Board noted that the Fund underperformed the Performance Universe median for the one-, three-, five- and ten-year periods ended December 31, 2023, underperformed the blended benchmark index for the one-, three- and five-year periods ended December 31, 2023 and outperformed the blended benchmark index for the ten-year period ended December 31, 2023. The Board noted the Advisor's discussion of the Fund's performance at the April 25, 2024 meeting. In addition, the Board considered information provided by the Advisor on the impact of leverage on the Fund's returns. The Board also received information on the Fund's annual distribution rate as of December 31, 2023 and the Fund's average trading discount for various periods and comparable information for a peer group.
On the basis of all the information provided on the fees, expenses and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the advisory and sub-advisory fees continue to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to the Fund under the Agreements.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale. The Board noted the Advisor's statement that it believes that its expenses relating to providing advisory services to the Fund will increase during the next twelve months as the Advisor continues to build infrastructure and add new staff. The Board concluded that due to the Fund's closed-end structure, the potential for realization of economies of scale as Fund assets grow was not a material factor to be considered. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2023 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor's profitability level for the Fund was not unreasonable. In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund. The Board considered the ownership interest of FTCP in the Sub-Advisor and potential indirect benefits to the Advisor from such ownership interest. The Board noted that in addition to the advisory fees paid by the Fund, the Advisor is compensated for fund reporting services pursuant to a separate Fund Reporting Services Agreement. The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
The Board considered the Sub-Advisor's statements that the Sub-Advisor bears a combination of fixed and variable costs related to managing the Fund and that the Sub-Advisor would add resources as needed if it experiences significant asset growth. The Board noted that the Advisor pays the Sub-Advisor from its advisory fee and its understanding that the Fund's sub-advisory fee rate was the product of an arm's length negotiation. The Board did not review the profitability of the Sub-Advisor with respect to the Fund. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered indirect benefits that may be realized by the Sub-Advisor from its relationship with the Fund, including potential indirect benefits to the Sub-Advisor from the ownership interest of FTCP in the Sub-Advisor. The Board noted the Sub-Advisor's statements that its relationship with the Advisor has helped it build relationships with Wall Street firms that have preferred and hybrid securities trading desks, which has led to access to each of those firms' public research reports, various analysts and investment bankers on new issues, and that the Sub-Advisor never accepts soft-dollar arrangements. The Board concluded that the character and amount of potential indirect benefits to the Sub-Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board's analysis.
Page 30
Investment Objectives, Policies, Risks and Effects of Leverage
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
Changes Occurring During the Prior Fiscal Year
The following information is a summary of certain changes during the most recent fiscal yearended October 31, 2024. This information may not reflect all of the changes that have occurred since you purchased shares of the Fund.
During the Fund's most recent fiscal year, there were no material changes to the Fund's investment objectives or policies that have not been approved by shareholders or in the principal risk factors associated with an investment in the Fund.
Investment Objectives
The Fund's primary investment objective is to seek a high level of current income. The Fund has a secondary objective of capital appreciation.
Principal Investment Policies
In pursuit of its investment objectives, under normal market conditions:
•
The Fund invests at least 80% of its managed assets in a portfolio of preferred and other income-producing securities issued by U.S. and non-U.S. companies. These securities include traditional preferred securities, hybrid preferred securities and debt securities, floating rate and fixed-to-floating rate preferred securities, debt securities, convertible securities and contingent convertible securities.
•
The Fund also invests at least 25% of its managed assets in the group of industries that are part of the financials sector as classified under the Global Industry Classification Standards, developed by MSCI, Inc. and S&P Dow Jones Indices.
•
The Fund seeks to invest in a portfolio of securities that has an average weighted investment grade credit quality.
•
The Fund may invest up to 20% of its managed assets in common stocks, which represent residual ownership interest in issuers and include rights or warrants to purchase common stocks. The Fund may invest in common stocks of companies of any market capitalization.
•
The Fund may invest up to 20% of its managed assets in debt securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities or by a non-U.S. Government or its agencies or instrumentalities. The Fund may invest up to 20% of its managed assets in municipal securities, which include debt obligations of states, territories or possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities.
•
The Fund may invest up to 25% of its managed assets in securities that, at the time of investment, are illiquid. The Fund also may invest, without limit, in restricted securities.
•
The Fund seeks to maintain a weighted average effective duration of between three and eight years, excluding the effects of leverage. However, under certain market conditions, the Fund's duration may be longer than eight years or shorter than three years.
Percentage limitations discussed herein are as of the time of investment by the Fund and may be exceeded on a going-forward basis as a result of credit rating downgrades or market value fluctuations of the Fund's portfolio securities.
To the extent the Fund enters into derivatives transactions, it will do so pursuant to Rule 18f-4 under the 1940 Act. Rule 18f-4 requires the Fund to implement certain policies and procedures designed to manage its derivatives risks, dependent upon the Fund's level of exposure to derivative instruments.
The Fund may utilize leverage through the issuance preferred shares of beneficial interest and/or through borrowings and/or the issuance of notes. The Fund is also permitted to use other portfolio techniques, including the use of reverse repurchase agreements, that have the economic effect of leverage. The Fund's effective leverage varies from time to time, based upon market conditions and variations in the value of the portfolio's holdings, but will not exceed 40% of the Fund's managed assets.
Fundamental Investment Policies
The Fund, as a fundamental policy, may not:
1. Issue senior securities, as defined in the Investment Company Act of 1940, as amended, other than (i) preferred shares which immediately after issuance will have asset coverage of at least 200%, (ii) indebtedness which immediately after issuance will have asset coverage of at least 300%, or (iii) the borrowings permitted by investment restriction (2) set forth below;
2. Borrow money, except as permitted by the Investment Company Act of 1940, as amended, the rules thereunder and interpretations thereof or pursuant to a Securities and Exchange Commission ("SEC") exemptive order;
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
3. Act as underwriter of another issuer's securities, except to the extent that the Fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933, as amended, in connection with the purchase and sale of portfolio securities;
4. Purchase or sell real estate, but this shall not prevent the Fund from investing in securities of companies that deal in real estate or are engaged in the real estate business, including real estate investment trusts, and securities secured by real estate or interests therein and the Fund may hold and sell real estate or mortgages on real estate acquired through default, liquidation, or other distributions of an interest in real estate as a result of the Fund's ownership of such securities;
5. Purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the Fund from purchasing or selling options, futures contracts, derivative instruments or from investing in securities or other instruments backed by physical commodities);
6. Make loans of funds or other assets, other than by entering into repurchase agreements, lending portfolio securities and through the purchase of securities in accordance with its investment objectives, policies and limitations; or
7. Concentrate (invest 25% or more of total assets) the Fund's investments in any particular industry, except that the Fund will concentrate its assets in the group of industries that are part of the financials sector; provided, however, that such limitation shall not apply to obligations issued or guaranteed by the United States government or by its agencies or instrumentalities.
The Fund does not currently intend to apply for exemptive relief from the Securities and Exchange Commission with respect to fundamental investment policy number two listed above.
The Fund may incur borrowings and/or issue series of notes or other senior securities in an amount up to 33-1/3% of its total assets (including the amount borrowed) less all liabilities other than borrowings.
The Fund's investment objectives are considered fundamental and may not be changed without the approval of the holders of a "majority of the outstanding voting securities" of the Fund, which includes common shares of beneficial interest and preferred shares of beneficial interest ("Preferred Shares"), if any, voting together as a single class, and the holders of the outstanding Preferred Shares, if any, voting as a single class. The remainder of the Fund's investment policies other than the Fund's fundamental investment restrictions listed above, including its investment strategy, are considered non-fundamental and may be changed by the Board of Trustees of the Fund without the approval of the holders of a "majority of the outstanding voting securities," provided that the holders of the voting securities of the Fund receive at least 60 days prior written notice of any change. When used with respect to particular shares of the Fund, a "majority of the outstanding voting securities" means (i) 67% or more of the shares present at a meeting, if the holders of more than 50% of the shares are present or represented by proxy, or (ii) more than 50% of the shares, whichever is less.
Principal Risks
The Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objectives. The following discussion summarizes the principal risks associated with investing in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports, proxy statements and other information that is available for review.
Contingent Convertible Securities Risk.CoCos are hybrid securities most commonly issued by banking institutions that present risks similar to debt securities and convertible securities. CoCos are distinct in that they are intended to either convert into equity or have their principal written down upon the occurrence of certain "triggers." When an issuer's capital ratio falls below a specified trigger level, or in a regulator's discretion depending on the regulator's judgment about the issuer's solvency prospects, a CoCo may be written down, written off or converted into an equity security. Due to the contingent write-down, write-off and conversion feature, CoCos may have substantially greater risk than other securities in times of financial stress. If the trigger level is breached, the issuer's decision to write down, write off or convert a CoCo may be outside its control, and the Fund may suffer a complete loss on an investment in CoCos with no chance of recovery even if the issuer remains in existence. CoCos are usually issued in the form of subordinated debt instruments to provide the appropriate regulatory capital treatment. If an issuer liquidates, dissolves or winds-up before a conversion to equity has occurred, the rights and claims of the holders of the CoCos (such as the Fund) against the issuer generally rank junior to the claims of holders of unsubordinated obligations of the issuer. In addition, if the CoCos are converted into the issuer's underlying equity securities after a conversion event (i.e., a "trigger"), each holder will be further subordinated. CoCos also may have no stated maturity and have fully discretionary coupons. This means coupon payments can be canceled at the issuer's discretion or at the request of the relevant regulatory authority in order to help the bank absorb losses, without causing a default. In general, the value of CoCos is unpredictable and is influenced by many factors including, without limitation: the creditworthiness of the issuer and/or fluctuations in
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
such issuer's applicable capital ratios; supply and demand for CoCos; general market conditions and available liquidity; and economic, financial and political events that affect the issuer, its particular market or the financial markets in general.
Credit Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity of securities. Any shortcomings or inefficiencies in credit rating agencies' processes for determining credit ratings may adversely affect the credit ratings of securities held by the Fund or such credit rating agency's ability to evaluate creditworthiness and, as a result, may adversely affect those securities' perceived or actual credit risk.
Credit and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated party of a debt security in the Fund's portfolio will fail to pay, or it is perceived that it will fail to pay, dividends or interest and/or repay principal when due. Below-investment grade instruments, including instruments that are not rated but judged to be of comparable quality, are commonly referred to as high-yield securities or "junk" bonds and are considered speculative with respect to the issuer's capacity to pay dividends or interest and repay principal and are more susceptible to default or decline in market value than investment grade securities due to adverse economic and business developments. High-yield securities are often unsecured and subordinated to other creditors of the issuer. The market values for high-yield securities tend to be very volatile, and these securities are generally less liquid than investment grade securities. For these reasons, an investment in the Fund is subject to the following specific risks: (i) increased price sensitivity to changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss due to default or declining credit quality; (iii) adverse company specific events more likely to render the issuer unable to make dividend, interest and/or principal payments; (iv) negative perception of the high-yield market which may depress the price and liquidity of high-yield securities; (v) volatility; and (vi) liquidity.
Current Market Conditions Risk.Current market conditions risk is the risk that a particular investment, or shares of the Fund in general, may fall in value due to current market conditions. As a means to fight inflation, which remains at elevated levels, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to reverse previously implemented quantitative easing. U.S. regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely impact the Fund's ability to achieve its investment strategies or make certain investments. 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. Additionally, challenges in commercial real estate markets, including rising interest rates, declining valuations and increasing vacancies, could have a broader impact on financial markets. The ongoing adversarial political climate in the United States, as well as political and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, which could have a negative impact on the Fund's investments and operations. The change in administration resulting from the 2024 United States national elections could result in significant impacts to international trade relations, tax and immigration policies, and other aspects of the national and international political and financial landscape, which could affect, among other things, inflation and the securities markets generally. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy. For example, ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Iran, 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 have and could continue to have a significant impact on certain Fund investments as well as Fund performance and liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted by trade disputes and other matters. For example, the United States has imposed trade barriers and restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate between the United States and China does not improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the value of the Fund's assets may go down. A future public health crisis and the ensuing policies enacted by governments and central banks may continue to cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects. As the COVID-19 global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others. Advancements in technology may also adversely impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation of artificial intelligence. Additionally, cyber security breaches of both government and non-government entities could have negative impacts on infrastructure and the ability of such entities, including the Fund, to operate properly. These events, and any other future events, may adversely affect the prices and liquidity of the Fund's portfolio investments and could result in disruptions in the trading markets.
Cyber Security Risk.The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund's digital information systems through "hacking" or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund's third-party service providers, such as its administrator, transfer agent, custodian, or Sub-Advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future.
Europe Risk. The Fund is subject to certain risks specifically associated with investments in the securities of European issuers. Political or economic disruptions in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund's holdings. A significant number of countries in Europe are member states in the European Union (the "EU"), and the member states no longer control their own monetary policies by directing independent interest rates for their currencies. In these member states, the authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central Bank. In a 2016 referendum, the United Kingdom elected to withdraw from the EU ("Brexit"). After years of negotiations between the United Kingdom and the EU, a withdrawal agreement was reached whereby the United Kingdom formally left the EU. As the second largest economy among EU members, the implications of the United Kingdom's withdrawal are difficult to gauge and cannot be fully known. Its departure may negatively impact the EU and Europe as a whole by causing volatility within the EU, triggering prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing the EU (thereby perpetuating political instability in the region).
Illiquid and Restricted Securities Risk. The Fund may invest in securities that are restricted and/or illiquid. Restricted securities are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a contractual restriction that prohibits or limits their resale. Restricted securities may be illiquid as they generally are not listed on an exchange and may have no active trading market. Investments in restricted securities could have the effect of increasing the amount of the Fund's assets invested in illiquid securities if qualified institutional buyers are unwilling to purchase these securities. Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Illiquid and restricted securities are also more difficult to value, especially in challenging markets.
Inflation Risk. The Fund invests in securities that are subject to inflation risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund's assets and distributions may decline. This risk is more prevalent with respect to debt securities. Inflation rates may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and the Fund's investments may not keep pace with inflation, which may result in losses to Fund investors.
Interest Rate and Duration Risk. Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. For fixed rate securities, when market interest rates rise, the market value of such securities generally will fall. Investments in fixed rate securities with long-term maturities may experience significant price declines if long-term interest rates increase. During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected prepayments. This may lock in a below-market yield, increase the security's duration and further reduce the value of the security. Fixed rate securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. The duration of a security will be expected to change over time with changes in market factors and time to maturity. Although the Fund seeks to maintain a duration, under normal market circumstances, excluding the effects of leverage, of between three and eight years, if the effect of the Fund's use of leverage was included in calculating duration, it could result in a longer duration for the Fund.
The interest rates payable on floating rate securities are not fixed and may fluctuate based upon changes in market rates. As short-term interest rates decline, interest payable on floating rate securities typically decreases. Alternatively, during periods of rising interest rates, interest payable on floating rate securities typically increases. Changes in interest rates on floating rate securities may lag behind changes in market rates or may have limits on the maximum increases in interest rates. The value of floating rate securities may decline if their interest rates do not rise as much, or as quickly, as interest rates in general.
Leverage Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
Management Risk and Reliance on Key Personnel. The implementation of the Fund's investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
Market Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.
Market Risk.Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or perceived economic conditions, political events, regulatory factors or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact on the value of the Fund's shares, the liquidity of an investment, and result in increased market volatility. During any such events, the Fund's shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund's shares may widen and the returns on investment may fluctuate.
Non-U.S. Securities Risk. Investing in securities of non-U.S. issuers, which are generally denominated in non-U.S. currencies, may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile than the U.S. market; (iii) potential adverse effects of fluctuations in currency exchange rates or controls on the value of the Fund's investments; (iv) the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (v) the impact of economic, political, social or diplomatic events; (vi) certain non-U.S. countries may impose restrictions on the ability of non-U.S. issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund's return. Foreign companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad. These risks may be more pronounced to the extent that the Fund invests a significant amount of its assets in companies located in one region or in emerging markets.
Operational Risk.The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund's service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund's ability to meet its investment objective. Although the Fund and the Fund's investment advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
Potential Conflicts on Interest Risk. First Trust, Stonebridge and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and Stonebridge currently manage and may in the future manage and/or advise other investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to Stonebridge) for investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First Trust and Stonebridge have a financial incentive to leverage the Fund.
Preferred/Hybrid Preferred and Debt Securities Risk. An investment in preferred/hybrid preferred and debt securities is subject to certain risks, including:
•
Issuer Risk. The value of these securities may decline for a number of reasons which directly relate to the issuer, such as management performance, leverage and reduced demand for the issuer's goods and services.
•
Interest Rate Risk. Interest rate risk is the risk that fixed rate securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of fixed rate securities generally will fall. Market value
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
generally falls further for fixed rate securities with longer duration. During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected prepayments. This may lock in a below-market yield, increase the security's duration and further reduce the value of the security. Investments in fixed rate securities with long-term maturities may experience significant price declines if long-term interest rates increase.
•
Floating Rate and Fixed-to-Floating Rate Risk. The market value of floating rate and fixed-to-floating rate securities may fall in a declining interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and the interest rate reset. Securities with a floating or variable interest rate component can be less sensitive to interest rate changes than securities with fixed interest rates. A secondary risk associated with declining interest rates is the risk that income earned by the Fund on floating rate and fixed-to-floating rate securities may decline due to lower coupon payments on floating rate securities.
•
Prepayment Risk. Prepayment risk is the risk that the issuer of a debt security will repay principal prior to the scheduled maturity date. During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund's income and distributions to common shareholders.
•
Reinvestment Risk. Reinvestment risk is the risk that income from the Fund's portfolio will decline if the Fund invests the proceeds from matured, traded or called securities at market interest rates that are below the Fund portfolio's current earnings rate.
•
Subordination Risk. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income and liquidation payments, and therefore will be subject to greater credit risk than those debt instruments.
In addition, preferred and hybrid preferred securities are subject to certain other risks, including deferral and omission risk, limited voting rights risk and special redemption rights risk.
Reverse Repurchase Agreements Risk. The Fund's use of reverse repurchase agreements may involve leverage risk. There is also the risk that the market value of the securities acquired with the proceeds of the reverse repurchase agreement may decline below the price of the securities that the Fund has sold but remains obligated to repurchase. In addition, there is a risk that the market value of the securities retained by the Fund may decline. Reverse repurchase agreements also involve the risk that the purchaser fails to return the securities as agreed upon, files for bankruptcy or becomes insolvent. The Fund may be restricted from taking normal portfolio actions during such time, could be subject to loss to the extent that the proceeds of the agreement are less than the value of securities subject to the agreement and may experience adverse tax consequences.
Risks of Concentration in the Financials Sector. Because the Fund invests 25% or more of its managed assets in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. The Fund may emphasize its investments in certain industries such as the banking and insurance industries and therefore may make the Fund more economically vulnerable in the event of a downturn in those industries. Financial companies are subject to extensive governmental regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge, the amount and types of capital they must maintain and, potentially, their size. Governmental regulation may change frequently and may have significant adverse consequences for financial companies, including effects not intended by such regulation. The impact of more stringent capital requirements, or recent or future regulation in various countries, on any individual financial company or on financial companies as a whole cannot be predicted. Certain risks may impact the value of investments in financial companies more severely than those of investments in other issuers, including the risks associated with companies that operate with substantial financial leverage. Financial companies may also be adversely affected by volatility in interest rates, loan losses and other customer defaults, decreases in the availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance companies in particular may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their profitability. Financial companies are also a target for cyber attacks and may experience technology malfunctions and disruptions as a result.
Smaller Companies Risk.Small and/or mid capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.
Trust Preferred Securities Risk. The risks associated with trust preferred securities typically include the financial condition of the financial institution that creates the trust, as the trust typically has no business operations other than holding the subordinated debt issued by the financial institution and issuing the trust preferred securities and common stock backed by the subordinated debt. If a financial institution is financially unsound and defaults on interest payments to the trust, the trust will not be able to make payments to
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Investment Objectives, Policies, Risks and Effects of Leverage (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
holders of the trust preferred securities such as the Fund. The issuer of trust preferred securities is generally able to defer or skip payments for up to five years without being in default and certain enhanced trust preferred securities may have longer interest payment deferral periods.
Valuation Risk. Unlike publicly traded common stock which trades on national exchanges, there is no central place or exchange for certain preferred securities and debt securities trading. Preferred securities and debt securities generally trade on an "over-the- counter" market which may be anywhere in the world where the buyer and seller can settle on a price. Due to the lack of centralized information and trading, the valuation of certain preferred securities and debt securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial market, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. 
NOT FDIC INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE
Effects of Leverage
The aggregate principal amount of borrowings under the credit agreement (the "Credit Agreement") with The Bank of Nova Scotia represented 28.73% of the Managed Assets as of October 31, 2024. Asset coverage with respect to the borrowings under the Credit Agreement was 348.01% as of October 31, 2024, and the Fund had $41,600,000 of unutilized funds available for borrowing under the Credit Agreement as of that date. As of October 31, 2024, the maximum commitment amount under the Credit Agreement was $525,000,000. As of October 31, 2024, the approximate average annual interest and fee rate payable on such borrowings was 5.56%.
Assuming that the Fund's leverage costs remain as described above (at an assumed average annual cost of 5.56%), the annual return that the Fund's portfolio must experience (net of expenses) in order to cover its leverage costs would be 1.60%
The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share total return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund's portfolio) of -10%, -5%, 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Fund.
The table further assumes leverage representing 28.73% of the Fund's Managed Assets, net of expenses, and an annual leverage interest and fee rate of 5.56%.  
Assumed Portfolio Total Return (Net of Expenses)
-10
%
-5
%
0
%
5
%
10
%
Common Share Total Return
-16.27
%
-9.26
%
-2.24
%
4.77
%
11.79
%
Common Share total return is composed of two elements: the Common Share dividends paid by the Fund (the amount of which is largely determined by the net investment income of the Fund after paying dividends or interest on its leverage) and gains or losses on the value of the securities the Fund owns. As required by SEC rules, the table above assumes that the Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0% the Fund must assume that the distributions it receives on its investments are entirely offset by losses in the value of those securities.
Page 37
Board of Trustees and Officers
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
The following tables identify the Trustees and Officers of the Fund. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187.
 
Name, Year of Birth and
Position with the Fund
Term of Office
and Year First
Elected or
Appointed(1)
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other Trusteeships or
Directorships Held by
Trustee During Past 5 Years
INDEPENDENT TRUSTEES
Richard E. Erickson, Trustee
(1951)
• Three Year
Term
 
• Since Fund
Inception
Retired; Physician, Edward-Elmhurst
Medical Group (2021 to September
2023); Physician and Officer,
Wheaton Orthopedics (1990 to 2021)
298
None
Thomas R. Kadlec, Trustee
(1957)
• Three Year
Term
 
• Since Fund
Inception
Retired; President, ADM Investor
Services, Inc. (Futures Commission
Merchant) (2010 to July 2022)
298
Director, National Futures
Association; Formerly,
Director of ADM Investor
Services, Inc., ADM Investor
Services International,
ADMIS Hong Kong Ltd.,
ADMIS Singapore, Ltd., and
Futures Industry Association
Denise M. Keefe, Trustee
(1964)
• Three Year
Term
 
• Since 2021
Senior Vice President, Advocate
Health, Continuing Health Division
(Integrated Healthcare System) (2023
to present); Executive Vice President,
Advocate Aurora Health (Integrated
Healthcare System) (2018 to 2023)
298
Director and Board Chair of
Advocate Home Health
Services, Advocate Home
Care Products and Advocate
Hospice; Director and Board
Chair of Aurora At Home
(since 2018); Director of
Advocate Physician Partners
Accountable Care
Organization; Director of
RML Long Term Acute Care
Hospitals; Director of Senior
Helpers (2021 to 2024); and
Director of MobileHelp
(2022 to 2024)
Robert F. Keith, Trustee
(1956)
• Three Year
Term
 
• Since Fund
Inception
President, Hibs Enterprises (Financial
and Management Consulting)
298
Formerly, Director of Trust
Company of Illinois
Niel B. Nielson, Trustee
(1954)
• Three Year
Term
 
• Since Fund
Inception
Senior Advisor (2018 to Present),
Managing Director and Chief
Operating Officer (2015 to 2018),
Pelita Harapan Educational
Foundation (Educational Products and
Services)
298
None
 
(1)
Currently, James A. Bowen, Niel B. Nielson and Bronwyn Wright, as Class III Trustees, are serving as trustees until the Fund's 2025 annual meeting of shareholders. Denise M. Keefe and Robert F. Keith, as Class I Trustees, are serving as trustees until the Fund's 2026 annual meeting of shareholders. Richard E. Erickson and Thomas R. Kadlec, as Class II Trustees, are serving as trustees until the Fund's 2027 annual meeting of shareholders.
Page 38
Board of Trustees and Officers (Continued)
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
Name, Year of Birth and
Position with the Fund
Term of Office
and Year First
Elected or
Appointed(1)
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other Trusteeships or
Directorships Held by
Trustee During Past 5 Years
INDEPENDENT TRUSTEES
Bronwyn Wright, Trustee
(1971)
• Three Year
Term
 
• Since 2023
Independent Director to a number of
Irish collective investment funds
(2009 to Present); Various roles at
international affiliates of Citibank
(1994 to 2009), including Managing
Director, Citibank Europe plc and
Head of Securities and Fund Services,
Citi Ireland (2007 to 2009)
272
None
INTERESTED TRUSTEE
James A. Bowen(2), Trustee and
Chairman of the Board
(1955)
• Three Year
Term
 
• Since Fund
Inception
Chief Executive Officer, First Trust
Advisors L.P. and First Trust
Portfolios L.P.; Chairman of the
Board of Directors, BondWave LLC
(Software Development Company)
and Stonebridge Advisors LLC
(Investment Advisor)
298
None
 
Name and Year of Birth
Position and Offices
with Fund
Term of Office
and Length of
Service
Principal Occupations
During Past 5 Years
OFFICERS(3)
James M. Dykas
(1966)
President and Chief
Executive Officer
• Indefinite Term
 
• Since 2016
Managing Director and Chief Financial Officer, First Trust
Advisors L.P. and First Trust Portfolios L.P.; Chief Financial
Officer, BondWave LLC (Software Development Company) and
Stonebridge Advisors LLC (Investment Advisor)
Derek D. Maltbie
(1972)
Treasurer, Chief Financial
Officer and Chief
Accounting Officer
• Indefinite Term
 
• Since 2023
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P., July 2021 to Present. Previously, Vice President,
First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 to
2021.
W. Scott Jardine
(1960)
Secretary and Chief Legal
Officer
• Indefinite Term
 
• Since Fund
Inception
General Counsel, First Trust Advisors L.P. and First Trust
Portfolios L.P.; Secretary and General Counsel, BondWave LLC;
Secretary, Stonebridge Advisors LLC
Daniel J. Lindquist
(1970)
Vice President
• Indefinite Term
 
• Since Fund
Inception
Managing Director, First Trust Advisors L.P. and First Trust
Portfolios L.P.
Kristi A. Maher
(1966)
Chief Compliance Officer
and Assistant Secretary
• Indefinite Term
 
• Since Fund
Inception
Deputy General Counsel, First Trust Advisors L.P. and First Trust
Portfolios L.P.
 
(2)
Mr. Bowen is deemed an "interested person" of the Fund due to his position as CEO of First Trust Advisors L.P., investment advisor of the Fund.
(3)
The term "officer" means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function.
Page 39
Privacy Policy
First Trust Intermediate Duration Preferred & Income Fund (FPF)
October 31, 2024 (Unaudited)
Privacy Policy
First Trust values our relationship with you and considers your privacy an important priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information.
Sources of Information
We collect nonpublic personal information about you from the following sources:
•
Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms;
•
Information about your transactions with us, our affiliates or others;
•
Information we receive from your inquiries by mail, e-mail or telephone; and
•
Information we collect on our website through the use of "cookies." For example, we may identify the pages on our website that your browser requests or visits.
Information Collected
The type of data we collect may include your name, address, social security number, age, financial status, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, investment objectives, marital status, family relationships and other personal information.
Disclosure of Information
We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. In addition to using this information to verify your identity (as required under law), the permitted uses may also include the disclosure of such information to unaffiliated companies for the following reasons:
•
In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers.
•
We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud).
In addition, in order to alert you to our other financial products and services, we may share your personal information within First Trust.
Use of Website Analytics
We currently use third party analytics tools, Google Analytics, to gather information for purposes of improving First Trust's website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make First Trust's website better and more useful to our users. The information collected does not include any personal identifiable information such as your name, address, phone number or email address unless you provide that information through the website for us to contact you in order to answer your questions or respond to your requests. To find out how to opt-out of these services click on: Google Analytics.
Confidentiality and Security
With regard to our internal security procedures, First Trust restricts access to your nonpublic personal information to those First Trust employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information.
Policy Updates and Inquiries
As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly. For questions about our policy, or for additional copies of this notice, please go to www.ftportfolios.com, or contact us at 1-800-621-1675 (First Trust Portfolios) or 1-800-222-6822 (First Trust Advisors).
March 2024
Page 40
 
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
INVESTMENT SUB-ADVISOR
Stonebridge Advisors LLC
10 Westport Road, Suite C101
Wilton, CT 06897
ADMINISTRATOR,
FUND ACCOUNTANT &
CUSTODIAN
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
TRANSFER AGENT
Computershare, Inc.
P.O. Box 43006
Providence, RI 02940
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606
 
(b) Not applicable to the Registrant.

Item 2. Code of Ethics.

(a) The First Trust Intermediate Duration Preferred & Income Fund ("Registrant"), as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party.
(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, and that relates to any element of the code of ethics description.
(d) The Registrant, during the period covered by this report, has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions.
(e) Not applicable to the Registrant.
(f) A copy of the code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller is filed as an exhibit pursuant to Item 13(a)(1).

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the Registrant's Board of Trustees has determined that Thomas R. Kadlec and Robert F. Keith are qualified to serve as audit committee financial experts serving on its audit committee and that each of them is "independent," as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees (Registrant) -- The aggregate fees billed for professional services rendered by the principal accountant for the audit of the Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $30,000 for the fiscal year ended 2023 and $30,000 for the fiscal year ended 2024.
(b) Audit-Related Fees (Registrant) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Audit-Related Fees (Investment Advisor) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Audit-Related Fees (Investment Sub-Advisor) -- The aggregate fees billed for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

(c) Tax Fees (Registrant) -- The aggregate fees billed for professional services rendered by the principal accountant for tax return review and debt instrument tax analysis and reporting were $21,211 for the fiscal year ended 2023 and $15,401 for the fiscal year ended 2024.

Tax Fees (Investment Advisor) -- The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the Registrant's advisor and distributor were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

Tax Fees (Investment Sub-Advisor) -- The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the Registrant's investment sub-advisor were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

These fees were for tax consultation and/or tax return preparation and professional services rendered for PFIC (Passive Foreign Investment Company) Identification Services.

(d) All Other Fees (Registrant) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

All Other Fees (Investment Advisor) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant's investment advisor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

All Other Fees (Investment Sub-Advisor) -- The aggregate fees billed for products and services provided by the principal accountant to the Registrant's investment sub-advisor, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended 2023 and $0 for the fiscal year ended 2024.

(e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

Pursuant to its charter and its Audit and Non-Audit Services Pre-Approval Policy, the Audit Committee (the "Committee") is responsible for the pre-approval of all audit services and permitted non-audit services (including the fees and terms thereof) to be performed for the Registrant by its independent auditors. The Chairman of the Committee is authorized to give such pre-approvals on behalf of the Committee up to $25,000 and report any such pre-approval to the full Committee.

The Committee is also responsible for the pre-approval of the independent auditor's engagements for non-audit services with the Registrant's advisor (not including a sub-advisor whose role is primarily portfolio management and is sub-contracted or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant, subject to the de minimis exceptions for non-audit services described in Rule 2-01 of Regulation S-X. If the independent auditor has provided non-audit services to the Registrant's advisor (other than any sub-advisor whose role is primarily portfolio management and is sub-contracted with or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the Registrant that were not pre-approved pursuant to its policies, the Committee will consider whether the provision of such non-audit services is compatible with the auditor's independence.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) for the Registrant and the Registrant's investment advisor and distributor of this Item that were approved by the audit committee pursuant to the pre-approval exceptions included in paragraph (c)(7)(i)(C) or paragraph(C)(7)(ii) of Rule 2-01 of Regulation S-X are as follows:

Registrant: Advisor and Distributor:
(b) 0% (b) 0%
(c) 0% (c) 0%
(d) 0% (d) 0%
(f) The percentage of hours expended on the principal accountant's engagement to audit the Registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent.
(g) The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Registrant, and rendered to the Registrant's investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the Registrant for the fiscal year ended 2023 were $21,211 for the Registrant, $44,000 for the Registrant's investment advisor and $16,000 for the Registrant's investment sub-advisor; and for the fiscal year ended 2024 were $15,401 for the Registrant, $28,080 for the Registrant's investment advisor and $8,640 for the Registrant's investment sub-advisor.
(h) The Registrant's audit committee of its Board of Trustees has determined that the provision of non-audit services that were rendered to the Registrant's investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

(i) Not applicable to the Registrant.

(j) Not applicable to the Registrant.

Item 5. Audit Committee of Listed Registrants.

(a) The Registrant has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 consisting of all the independent directors of the Registrant. The audit committee of the Registrant is comprised of: Richard E. Erickson, Thomas R. Kadlec, Denise M. Keefe, Robert F. Keith, Niel B. Nielson and Bronwyn Wright.
(b) Not applicable to the Registrant.

Item 6. Investments.

(a) The Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included in the Registrant's Annual Report, which is included as Item 1 of this Form N-CSR.
(b) Not applicable to the Registrant.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a) Not applicable to the Registrant.

(b) Not applicable to the Registrant.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable to the Registrant.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies

Not applicable to the Registrant.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

This statement is included in the Registrant's Annual Report filed under Item 1 of this Form N-CSR.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Proxy Voting Policies are attached herewith.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

(a)(1) Identification of Portfolio Manager(s) or Management Team Members and Description of Role of Portfolio Manager(s) or Management Team Members

Information provided as of October 31, 2024

Stonebridge Advisors LLC is a registered investment advisor based in Wilton, Connecticut. Stonebridge specializes in the management of preferred and hybrid securities.

Robert Wolf, CIO and Executive Vice President

Mr. Wolf is a member of the firm's Investment Committee and oversees investment strategies and portfolio management activities across funds and separately managed accounts. He analyzes both investment grade and non-investment grade securities and makes security recommendations. Mr. Wolf brings 18 years of fixed-income experience to Stonebridge in both portfolio management and credit research. Prior to joining Stonebridge in 2006, Mr. Wolf was a high-yield fixed-income research analyst at Lehman Brothers. In this role, his responsibilities included detailed credit analysis across multiple sectors, relative value analysis, and developing trade recommendations for Lehman's High-Yield proprietary trading effort. Mr. Wolf previously worked for Lehman Brothers Commercial Mortgage-Backed Securities (CMBS) trading desk as a credit analyst where he provided in-depth analysis of CMBS transactions and the underlying Commercial Real Estate. Mr. Wolf received his B.S. degree in Chemistry from Villanova University in 1999 and his MBA in Finance from the New York University Stern School of Business in 2004.

Eric Weaver, Chief Strategist and Executive Vice President

Mr. Weaver is a senior member of Stonebridge Advisors LLC's Investment Committee and oversees the investment strategy across all fund products and separately managed accounts. In addition, Mr. Weaver leads the development of proprietary portfolio management, security selection, trading, and operational tools. Mr. Weaver has fourteen years of investment management experience in portfolio management, trading, risks analysis, and research. Mr. Weaver joined Stonebridge Advisors LLC in 2013. Prior to joining Stonebridge in 2013, Mr. Weaver worked at a private proprietary trading firm as a senior derivatives trader, with OTC and electronic trading experience on the NASDAQ OMX PHLX and CBOE options exchanges. In this role, Mr. Weaver focused on trading, portfolio and risk management, and pricing complex derivatives in a large and diverse portfolio of equities, options, and futures. Mr. Weaver received a B.A. degree in Economics and Mathematics and an MS degree in Economics from Lehigh University in Bethlehem, PA.

Angelo Graci, CFA, Executive Vice President and Head of Credit Research

Mr. Graci is a senior member of the Investment Committee and manages a team of analysts that oversees all of Stonebridge's portfolio investments. Mr. Graci has over 26 years of credit and equity research experience with a focus on financials. His extensive knowledge of global banking, insurance, non-bank finance and REITs brings an impressive level of analytical depth to the Stonebridge research team. Prior to joining Stonebridge in 2018, Mr. Graci was a global financials credit strategist at Stifel Financial, with a particular focus on hybrid/preferred strategy. At Stifel, he incorporated a multiasset and cross-currency approach to analyzing global financials, which encompassed global banking systems (developed and emerging markets), insurance, non-bank finance and REITs. Before Stifel, he was a senior analyst at Caxton Associates, responsible for financial sector credit and equity analysis and portfolio management. Prior roles included global financials and hybrid strategy at Citadel Securities and credit analysis and trading at Merrill Lynch. Mr. Graci received a BS in Finance from SUNY Albany and an MBA in Finance from New York University. He holds the CFA® designation awarded by CFA Institute.

(a)(2) Other Accounts Managed by Portfolio Manager(s) or Management Team Member and Potential Conflicts of Interest

Information provided as of October 31, 2024

Name of Portfolio Manager or

Team Member

Type of Accounts Total # of Accounts
Managed 		Total Assets # of Accounts
Managed for
which Advisory
Fee is
 Based on
Performance 		Total Assets for which Advisory Fee is Based
on Performance
1. Robert Wolf Registered Investment Companies: 3 $7.404Bil 0 $0
Other Accounts: 9851 $3.594Bil 0 $0
2. Eric Weaver Registered Investment Companies: 3 $7.404Bil 0 $0
Other Accounts: 9851 $3.594Bil 0 $0

3. Angelo Graci

Registered Investment Companies: 3 $7.404Bil 0

$0

Other Accounts: 9851 $3.594Bil 0 $0

Potential Conflicts of Interests

Stonebridge avoids material conflicts that may arise from side-by-side management of the CEF and other account strategies, including other FT funds and Separately Managed Accounts, by policies and procedures that are designed to ensure that each client is treated fairly. Stonebridge's investment team considers every investment opportunity for each of our portfolios based on the portfolio or fund guidelines, restrictions and compliance rules. Trades are pre-allocated to those client portfolios for which the trade is suitable, given the portfolio's goals and guidelines. Partial fills are governed by allocation rules that are designed to treat each client fairly.

(a)(3) Compensation Structure of Portfolio Manager(s) or Management Team Members

Information provided as of October 31, 2024

Stonebridge employees receive an annual salary, mid- and year-end discretionary bonuses, health benefits and 401K. Compensation consists of base salaries with upside potential in the form of mid-year and year-end performance bonuses. These bonuses are based on a number of factors: profitability of the firm, employee value to the firm success, investment performance and servicing of clients, employee ability to fit into the team, employee commitment, work ethic and effectiveness in carrying out assigned duties, employee dedication above and beyond expectations.

(a)(4) Disclosure of Securities Ownership as of October 31, 2024

Name of Portfolio Manager
or Team Member 		Dollar ($) Range of Fund
Shares Beneficially Owned
Robert Wolf $50,001-$100,000
Eric Weaver $50,001-$100,000
Angelo Graci $100,001-$500,000
(b) Not applicable to the Registrant.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

No reportable purchases for the period covered by this report.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant's board of directors, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 16. 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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a) The Registrant did not engage in any securities lending activity during its most recent fiscal year.
(b) The Registrant did not engage in any securities lending activity and no services were provided by the securities lending agent to the Registrant during its most recent fiscal year.

Item 18. Recovery of Erroneously Awarded Compensation.

(a) Not applicable to the Registrant.
(b) Not applicable to the Registrant.

Item 19. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.
(a)(2) Not applicable to the Registrant.
(a)(3) The certifications required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2022 are attached hereto.
(a)(4) Not applicable to the Registrant.
(a)(5) Not applicable to the Registrant.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(c) Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies as required by Item 12 is 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: January 10, 2025

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: January 10, 2025
By (Signature and Title)* /s/ Derek D. Maltbie
Derek D. Maltbie, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date: January 10, 2025

* Print the name and title of each signing officer under his or her signature.