First Trust Enhanced Equity Income Fund (the "Fund") (NYSE: FFA)
has declared the Fund's regularly scheduled quarterly distribution
of $0.315 per share. The distribution will be payable on June 30,
2023, to shareholders of record as of June 23, 2023. The
ex-dividend date is expected to be June 22, 2023. The quarterly
distribution information for the Fund appears below.
First Trust Enhanced
Equity Income Fund (FFA):
Distribution per share:
$0.315
Distribution Rate based on the June 9,
2023 NAV of $18.11:
6.96%
Distribution Rate based on the June 9,
2023 closing market price of $17.40:
7.24%
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
more frequently than otherwise permitted with respect to its common
shares subject to certain conditions. Under the Plan, the Fund
intends to pay a quarterly distribution in the amount of $0.315 per
share. A portion of this quarterly 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.
This distribution will consist of net investment income earned
by the Fund and may also consist of return of capital and/or
realized capital gains. The final determination of the source and
tax status of all distributions paid in 2023 will be made after the
end of 2023 and will be provided on Form 1099-DIV.
The Fund is a diversified, closed-end management 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 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 $190 billion as of May
31, 2023 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.
Chartwell Investment Partners, LLC ("Chartwell") serves as the
Fund's investment sub-advisor and is an investment firm focusing on
institutional, sub-advisory, and private client relationships. The
firm is a research-based equity and fixed-income manager with a
disciplined, team-oriented investment process. As of May 31, 2023,
Chartwell had approximately $10.8 billion in assets under
management.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the Fund are identified below, which
includes the risk that you could lose some or all of your
investment in the Fund. The principal risks of investing in the
Fund are spelled out in the Fund's annual shareholder reports. The
order of the below risk factors does not indicate the significance
of any particular risk factor. The Fund also files reports, proxy
statements and other information that is available for
review.
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.
Securities held by a fund, as well as 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 trends in
securities prices. Shares of a 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, spread of
infectious diseases or other public health issues, recessions,
natural disasters or other events could have a significant negative
impact on a fund and its investments. Such events may affect
certain geographic regions, countries, sectors and industries more
significantly than others. In February 2022, Russia invaded Ukraine
which has caused and could continue to cause significant market
disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from
those hostilities could have a significant impact on certain fund
investments as well as fund performance. The COVID-19 global
pandemic and the ensuing policies enacted by governments and
central banks have caused and may continue to cause significant
volatility and uncertainty in global financial markets. While
vaccines have been developed, there is no guarantee that vaccines
will be effective against future variants of the disease. 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.
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.
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 for 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 might otherwise sell.
Premiums from writing (selling) call options and dividends and
interest payments made by the securities in the Fund's portfolio
can vary widely over time.
An adverse event affecting an issuer of equity securities, such
as an unfavorable earnings report, may depress the value of a
particular equity security held by the Fund. Also, the prices of
equity securities are sensitive to general movements in the stock
market and a drop in the stock market may depress the prices of
equity securities to which the Fund has exposure. There is no
guarantee that the issuers of the equity securities in which the
Fund invests will declare dividends in the future or that if
declared they will remain at current levels. 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.
Investment in non-U.S. securities is subject to the risk of
currency fluctuations and to economic and political risks
associated with such foreign countries.
The Fund may not invest 25% or more of its total assets in
securities of issuers in any single industry. If the Fund is
focused in an industry, it may present more risks than if it were
broadly diversified over numerous industries of the economy.
The risks of investing in the Fund are spelled out in the
shareholder report 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 professionals 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
https://www.ftportfolios.com or by calling 1-800-988-5891.
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