First Trust Enhanced Equity Income Fund announces quarterly distribution of $ 0.315 per share
WHEATON, Illinois – (COMMERCIAL THREAD) – First Trust Enhanced Equity Income Fund (the “Fund”) (NYSE: FFA) has declared a regular quarterly distribution of the Fund of $ 0.315 per share. The distribution will be payable on June 30, 2021 to shareholders of record on June 23, 2021. The ex-dividend date is expected to be June 22, 2021. Information on the quarterly distribution of the Fund is set out below.
First Trust Enhanced Equity Income Fund (FFA):
Breakdown per share:
Distribution rate based on the June 9, 2021 net asset value of $ 20.35:
Payout rate based on the June 9, 2021 closing market price of $ 20.17:
The Fund’s Board of Trustees 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 distributions of capital gains to long term more frequently than not. permitted in respect of its common shares subject to certain conditions. Under the terms of 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 in the distribution of long-term capital gains required 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. Therefore, you should not draw any conclusions about the Fund’s investment performance from the amount of a distribution or 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 2021 will be made after the end of 2021 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 income and current earnings 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 advisor and acts as the investment advisor to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a brokerage firm registered with FINRA, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $ 199 billion as of May 31, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and segregated managed accounts. FTA is the supervisor of the First Trust mutual funds, while FTP is the sponsor. FTP is also a distributor of UCITS units and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Chartwell Investment Partners, LLC (“Chartwell”) acts as the Fund’s investment sub-advisor and is an investment firm focused on relationships with institutional clients, sub-advisers and private clients. The company is a research-driven equity and fixed income manager with a disciplined and team-oriented investment process. As of May 31, 2021, Chartwell had approximately $ 11.5 billion in assets under management.
Past performance is no guarantee of future results. Investment returns and the market value of an investment in the Fund 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.
Main risk factors: 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. market, changes in interest rates and perceived trends in securities prices. The shares of a fund 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 significant negative impact on a person. funds and its investments. Such events can affect some geographies, countries, sectors and industries more significantly than others. The outbreak of respiratory disease known as COVID-19 in December 2019 caused significant volatility and declines in global financial markets, causing losses for investors. The COVID-19 pandemic can last a long time and will continue to impact the economy for the foreseeable future.
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 NAV.
The Fund may sell (sell) covered call options on all or a portion of the equity securities held in the Fund portfolio. The use of options may force the Fund to sell portfolio securities at inappropriate times or at prices other than current market values, may limit the amount of appreciation that the Fund can achieve on an investment, or may cause the Fund to hold an equity security that it could otherwise sell.
The premiums resulting from the writing (writing) of call options and from dividend and interest payments made by the securities in the Fund’s portfolio can vary considerably over time.
An adverse event affecting an issuer of equity securities, such as an adverse earnings report, may decrease the value of a particular equity security held by the Fund. In addition, the prices of equity securities are sensitive to general movements in the stock market and a decline in the stock market may depress the prices of the equity securities to which the Fund is exposed. There can be no assurance that the issuers of 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 that the portion of the distributions paid to holders of common shares of the Fund will consist of tax-advantaged eligible dividend income.
Investment in non-US securities is subject to the risk of currency fluctuations and to the 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 a single sector or in the same sector. If the Fund focuses on one industry or sector, it may present more risk than if it were broadly diversified across many industries or sectors of the economy.
The risks associated with investing in the Fund are described in the report to shareholders and 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 undertake to give advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.
The daily closing price of the Fund on the New York Stock Exchange and the net asset value per share as well as other information is available at https://www.ftportfolios.com/ or by calling 1-800-988-5891.