Niel Nielson
About Niel Nielson
Niel B. Nielson, Ph.D. (born 1954), is an Independent Trustee of First Trust Intermediate Duration Preferred & Income Fund (FPF), nominated as a Class III Trustee since the Fund’s inception; he has served as an Independent Trustee across the First Trust Funds since 1999 . His background spans education leadership (President of Covenant College), operating roles in educational services, and derivatives trading/management at CRT/Ritchie, with international board experience at CRT Europe; he currently serves as Senior Advisor to Pelita Harapan Educational Foundation . He has held multiple governance leadership posts across the First Trust Funds, including Lead Independent Trustee, and currently chairs the Valuation Committee (since January 1, 2023) .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Pelita Harapan Educational Foundation | Senior Advisor | 2018–present | Senior advisor to global provider of educational products/services |
| Pelita Harapan Educational Foundation | Managing Director & COO | 2015–2018 | Oversight of operations |
| Dew Learning LLC | President & CEO | 2012–2014 | Led education technology/services company |
| Covenant College | President | 2002–2012 | Higher education leadership |
| Ritchie Capital Markets Group | Partner & Trader | 1996–1997 | Options/futures trading; administrative management at proprietary derivatives firm |
| CRT Europe, Inc. | Director | ~2 years (prior to CRT Chicago role) | Directed U.K. and European subsidiary from London |
| Chicago Research & Trading Group (CRT) | Trader & Manager | Prior to CRT Europe role | Trading/management in Chicago |
| ServiceMaster Management Services Co. | New Business Development | Prior period | Business development |
| NationsBank of North Carolina, N.A. | Personnel & HR | Prior period | HR responsibilities |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Pelita Harapan Educational Foundation | Senior Advisor | 2018–present | Global educational products/services |
| CRT Europe, Inc. | Director | Prior period (two years) | International subsidiary oversight (U.K./Europe) |
Board Governance
| Committee | Role | Current/Recent Membership | Notes |
|---|---|---|---|
| Audit Committee | Member | Listed as serving | All members are “independent directors” under exchange rules |
| Nominating & Governance Committee | Member | Listed as serving | Independent Trustees; mandatory retirement age of 75; search/qualification oversight |
| Valuation Committee | Member; Chair (Fund Complex) | Listed as serving | Oversees Rule 2a‑5 fair value process; Nielson is Chair since Jan 1, 2023 across First Trust Funds |
| Executive & Dividend Committees | Historical service | Member historically | Prior service on Executive and Dividend Committees through March 12, 2024 |
- Independence: Nielson is disclosed as an Independent Trustee (and an “independent director” under exchange listing rules) .
- Attendance: Each Trustee attended at least 75% of the aggregate number of Board and applicable committee meetings in the last fiscal year .
- Tenure: Independent Trustee since the Fund’s inception; Independent Trustee across First Trust Funds since 1999 .
Fixed Compensation
| Component | Amount | Effective Date | Notes |
|---|---|---|---|
| Annual retainer (Independent Trustees) | $285,000 | Jan 1, 2024 | Allocated equally among funds in First Trust Fund Complex |
| Per fund fee – Closed-end fund | $7,500 per fund per year | Jan 1, 2024 | Applies to each closed-end fund; FPF is a closed-end fund |
| Per fund fee – Actively managed ETF | $2,000 per fund per year | Jan 1, 2024 | |
| Per fund fee – Target outcome fund | $750 per fund per year | Jan 1, 2024 | |
| Per fund fee – Index fund | $500 per fund per year | Jan 1, 2024 | |
| Role fee – Lead Independent Trustee | $30,000 per year | Effective as disclosed | Rotational roles per Board policy |
| Role fee – Vice Lead Independent Trustee | Up to $25,000 per year | Effective Mar 12, 2024 | Rotational |
| Role fee – Audit Committee Chair | $25,000 per year | Effective as disclosed | Rotational |
| Role fee – Valuation Committee Chair | $20,000 per year | Effective as disclosed | Rotational |
| Role fee – Nominating & Governance Chair | $20,000 per year | Effective as disclosed | Rotational |
| Role fee – Audit Committee Vice Chair | $15,000 per year | Effective Mar 12, 2024 | Rotational |
| Expenses | Reimbursed | Ongoing | Travel and out-of-pocket expenses reimbursed |
| Fund-level Trustee Compensation (most recent fiscal year) | Amount | Fiscal Year End |
|---|---|---|
| First Trust Intermediate Duration Preferred & Income Fund (FPF) – Niel B. Nielson | $7,482 | Oct 31, 2024 |
- Total Compensation for Serving the First Trust Fund Complex (calendar 2024): $644,660 for Nielson .
Performance Compensation
- No performance-linked metrics (e.g., revenue growth, EBITDA, TSR, ESG) are disclosed for Trustee compensation; compensation is comprised of cash retainer, per-fund fees, and role-based fees, with no equity awards or options described for Trustees .
Other Directorships & Interlocks
| Company | Public/Private | Role | Tenure | Interlocks/Notes |
|---|---|---|---|---|
| None disclosed | — | — | Past 5 years | “Other Trusteeships or Directorships Held by Trustee During Past 5 Years: None” for Nielson |
Expertise & Qualifications
- Financial markets and derivatives experience (CRT/Ritchie), including international oversight of CRT Europe and trading/management roles in Chicago .
- Education sector operating leadership (Covenant College President; Dew Learning CEO; Pelita Harapan MD/COO; Senior Advisor) .
- Extensive fund governance leadership: prior Chair of Audit, Valuation, Nominating & Governance, Dividend; Lead Independent Trustee; current Chair of Valuation Committee across First Trust Funds .
Equity Ownership
| Fund | Dollar Range | Shares Owned | As of Date |
|---|---|---|---|
| First Trust Intermediate Duration Preferred & Income Fund (FPF) | $0 | 0 | Dec 31, 2024 |
| Aggregate ownership across First Trust Fund Complex overseen | Over $100,000 | n/a | Dec 31, 2024 |
- Ownership guidelines: Independent Trustees are expected, within three years of becoming an Independent Trustee, to invest at least one year’s annual retainer (aggregate across funds overseen), allocated based on personal investment needs .
- Related-party holdings: As of Dec 31, 2024, Independent Trustees and immediate family did not own any class of securities of First Trust Advisors, sub-advisors, or principal underwriters; no purchases/sales of such securities during the most recent fiscal year .
- Group holdings: Trustees and executive officers as a group owned less than 1% of FPF shares outstanding as of Dec 31, 2024 .
Governance Assessment
- Board effectiveness: Nielson brings deep governance continuity and cross-committee leadership, currently chairing the Valuation Committee, which is central to Rule 2a‑5 fair value oversight—a critical function for closed-end funds holding thinly traded preferreds and income instruments .
- Independence and attendance: Classified as independent under exchange rules with ≥75% attendance, supporting investor confidence in oversight quality .
- Alignment: Compensation is fully cash-based with per-fund fees and role stipends; FPF-specific ownership is 0 shares despite an aggregate complex holding >$100,000, consistent with the Board’s guideline emphasizing aggregate investments rather than per-fund alignment .
- Succession/tenure: Mandatory retirement age set at 75; Nielson’s year of birth is 1954, implying Board-planned rotation within the framework of the Nominating & Governance Committee and By‑Laws qualification requirements .
RED FLAGS
- Zero direct ownership in FPF (0 shares) may be perceived as reduced fund-specific alignment even though aggregate complex ownership exceeds $100,000 per guidelines .
- High complex-wide cash compensation ($644,660 in 2024) without performance linkage can draw scrutiny on pay-for-performance alignment for Trustees, even if normatively consistent with fund governance practices .
Mitigants
- Strong independence disclosures, robust committee work (including current Valuation Committee chair role), and adequate attendance support governance quality and oversight credibility .
- Explicit ownership policy and prohibition on related-party securities support conflict mitigation .