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WHEATON, Ill.–(BUSINESS WIRE)–First Trust Enhanced Equity Income Fund (the “Fund”) (NYSE: FFA) has declared the Fund’s regular quarterly distribution of $0.315 per share. The distribution will be payable on June 30, 2022 to shareholders of record on June 23, 2022. The ex-dividend date is expected to be June 22, 2022. Information on the Fund’s quarterly distribution is set out below.
First Trust Enhanced Equity Income Fund (FFA):
Breakdown per share:
Distribution rate based on the net asset value of June 10, 2022 of $17.54:
Distribution rate based on the June 10, 2022 closing price of $17.62:
The Board of Directors of the Fund has approved a managed distribution policy for the Fund (the “Plan”) based on an exemption received from the Securities and Exchange Commission which permits the Fund to make periodic capital gains distributions term more frequently than otherwise permitted in respect of its common shares subject to certain conditions. Under the plan, the Fund intends to pay a quarterly distribution of $0.315 per share. A portion of this quarterly distribution may include long-term capital gains. This may result in a reduction in the required long-term capital gains distribution at the end of the year by distributing long-term capital gains throughout the year. The annual distribution rate is independent of the performance of the Fund over a given period. Accordingly, you should not draw any conclusions about the investment performance of the Fund from the amount of any distribution or the terms of the Plan.
This distribution will consist of net investment income earned by the Fund and may also consist of a return of capital and/or realized capital gains. The final determination of the source and tax status of all distributions paid in 2022 will be made after the end of 2022 and will be provided on Form 1099-DIV.
The Fund is a diversified closed-end investment company that seeks to provide a high level of current income and gains and, to a lesser extent, capital appreciation. The Fund seeks to achieve its investment objective by investing in a diversified portfolio of equity securities.
First Trust Advisors LP (“FTA”) is a federally registered investment adviser and acts as the investment adviser to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a FINRA-registered broker, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $203 billion as of May 31, 2022 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and accounts managed separately. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of UCITS units and UCITS creation units. FTA and FTP are based in Wheaton, Illinois.
Chartwell Investment Partners, LLC (“Chartwell”) acts as the investment sub-advisor to the Fund and is an investment firm focused on relationships with institutional, sub-advisory and private clients. The firm is a research-driven equity and fixed income manager with a disciplined, team-oriented investment process. As of May 31, 2022, Chartwell had approximately $10.9 billion in assets under management.
Main risk factors: Risks are inherent in any investment. Certain risks applicable to the fund are identified below. The Fund files reports, proxy statements and other information available for review. The order of the risk factors below does not indicate the importance of any particular risk factor.
Past performance is not indicative of future results. Investment returns and the market value of an investment in the Fund will fluctuate. Stocks, when sold, may be worth more or less than their original cost. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be suitable for all investors.
The securities held by a fund, as well as the shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived security price trends. A fund’s shares could lose value or underperform other investments because of the risk of loss associated with these market movements. In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious diseases or other public health issues, recessions or other events could have a material adverse impact on a funds and their investments. Such events may affect certain geographies, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine, which caused and may continue to cause significant market disruption and market volatility in Russia, Europe and the United States. Hostilities and the sanctions resulting from these hostilities could have a significant impact on certain investments of the fund as well as on the performance of the fund. The outbreak of the respiratory disease referred to as COVID-19 in December 2019 caused significant volatility and decline in global financial markets, resulting in losses for investors. While vaccine development has slowed the spread of the virus and allowed “reasonably” normal business activity to resume in the United States, many countries continue to impose containment measures in an attempt to slow the spread. Moreover, there is no guarantee that the vaccines will be effective against emerging variants of the disease.
Shares of closed-end investment companies such as the Fund frequently trade at a discount to their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.
The Fund may write (sell) covered call options on all or a portion of the equity securities held in the Fund’s portfolio. The use of options may require the Fund to sell portfolio securities at inopportune times or at prices other than current market values, may limit the amount of appreciation the Fund can realize on an investment or may cause the Fund to hold an equity security that it could otherwise sell.
The premiums from the writing (selling) of call options and from the payments of dividends and interest made by the securities in the Fund’s portfolio can vary significantly over time.
An adverse event affecting an issuer of equity securities, such as an adverse earnings report, may lower the value of a particular equity security held by the Fund. In addition, the prices of equity securities are sensitive to general stock market fluctuations and a decline in the stock market may lower the prices of equity securities to which the Fund is exposed. There can be no assurance that the issuers of the equity securities in which the Fund invests will declare dividends in the future or that, if they do, they will remain at current levels. There can be no assurance that part of the distributions paid to holders of common shares of the Fund will consist of tax-efficient eligible dividend income.
Investment in non-US securities is subject to the risk of currency fluctuations and the economic and political risks associated with those foreign countries.
The Fund may not invest 25% or more of its total assets in securities of issuers in the same industry. If the Fund concentrates on one sector, it may present more risk than if it were broadly diversified across many sectors of the economy.
The risks associated with an investment in the Fund are specified in the report to shareholders and in other regulatory documents.
The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not represent itself as giving advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Finance professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.
The Fund’s daily closing price on the New York Stock Exchange and net asset value per share and other information can be viewed at https://www.ftportfolios.com or by calling 1-800-988-5891.
Press Inquiries Ryan Issakainen 630-765-8689
Analyst inquiries Jeff Margolin 630-915-6784
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Source: First Trust Enhanced Equity Income Fund