First Trust Energy Infrastructure Fund Declares its Monthly Common Share Distribution of $0.11 Per Share for August
July 22 2019 - 4:27PM
Business Wire
First Trust Energy Infrastructure Fund (the "Fund") (NYSE: FIF)
has declared the Fund’s regularly scheduled monthly common share
distribution in the amount of $0.11 per share payable on August 15,
2019, to shareholders of record as of August 2, 2019. The
ex-dividend date is expected to be August 1, 2019. The monthly
distribution information for the Fund appears below.
First Trust Energy
Infrastructure Fund (FIF):
Distribution per share:
$0.11
Distribution Rate based on the July 19,
2019 NAV of $18.11:
7.29%
Distribution Rate based on the July 19,
2019 closing market price of $16.30:
8.10%
The Fund's Board of Trustees has approved a managed distribution
policy for the Fund (the "Plan") in reliance on exemptive relief
received from the Securities and Exchange Commission which permits
the Fund to make periodic distributions of long-term capital gains
as frequently as monthly each tax year. Under the Plan, the Fund
intends to continue to pay its recurring monthly distribution in
the amount of $0.11 per share that reflects the distributable cash
flow of the Fund. A portion of this monthly distribution may
include long-term capital gains. This may result in a reduction of
the long-term capital gain distribution necessary at year end by
distributing long-term capital gains throughout the year. The
annual distribution rate is independent of the Fund's performance
during any particular period. Accordingly, you should not draw any
conclusions about the Fund's investment performance from the amount
of any distribution or from the terms of the Plan.
The distribution may consist of net investment income earned by
the Fund, net short-term and long-term capital gains and/or
tax-deferred return of capital. Tax-deferred return of capital, if
any, is primarily due to the tax treatment of cash distributions
made by master-limited partnerships ("MLPs") in which the Fund
invests. The final determination of the source of tax status of all
2019 distributions will be made after the end of 2019 and will be
provided on Form 1099-DIV.
The Fund is a non-diversified, closed-end management investment
company that seeks to provide a high level of total return with an
emphasis on current distributions paid to shareholders. The Fund
seeks to achieve its investment objectives by investing primarily
in securities of companies engaged in the energy infrastructure
sector. These companies principally include publicly-traded MLPs
and limited liability companies taxed as partnerships, MLP
affiliates, YieldCos, pipeline companies, utilities, and other
companies that derive at least 50% of their revenues from operating
or providing services in support of infrastructure assets such as
pipelines, power transmission and petroleum and natural gas storage
in the petroleum, natural gas and power generation industries
(collectively, "Energy Infrastructure Companies"). To generate
additional income, the Fund expects to write (or sell) covered call
options on up to 35% of the managed assets held in the Fund's
portfolio.
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. FTA
and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA
registered broker-dealer, are privately-held companies that provide
a variety of investment services. FTA has collective assets under
management or supervision of approximately $133 billion as of June
30, 2019 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts. FTA
is the supervisor of the First Trust unit investment trusts, while
FTP is the sponsor. FTP is also a distributor of mutual fund shares
and exchange-traded fund creation units. FTA and FTP are based in
Wheaton, Illinois.
Energy Income Partners, LLC ("EIP") serves as the Fund's
investment sub-advisor and provides advisory services to a number
of investment companies and partnerships for the purpose of
investing in MLPs and other energy infrastructure securities. EIP
is one of the early investment advisors specializing in this area.
As of June 30, 2019, EIP managed or supervised approximately $6.3
billion in client assets.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost. There can be no assurance that the Fund’s investment
objectives will be achieved. The Fund may not be appropriate for
all investors.
Principal Risk Factors: The Fund is subject to risks, including
the fact that it is a non-diversified closed-end management
investment company.
Because the Fund is concentrated in securities issued by energy
infrastructure companies, it will be more susceptible to adverse
economic or regulatory occurrences affecting that industry,
including high interest costs, high leverage costs, the effects of
economic slowdown, surplus capacity, increased competition,
uncertainties concerning the availability of fuel at reasonable
prices, the effects of energy conservation policies and other
factors.
The Fund invests in securities of non-U.S. issuers which are
subject to higher volatility than securities of U.S. issuers.
Because the Fund invests in non-U.S. securities, you may lose money
if the local currency of a non-U.S. market depreciates against the
U.S. dollar.
There can be no assurance as to what portion of the
distributions paid to the Fund's Common Shareholders will consist
of tax-advantaged qualified dividend income.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial advisors are responsible for evaluating investment risks
independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Fund's daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
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