First Trust Energy Infrastructure Fund Declares its Monthly Common Share Distribution of $0.45 per Share for December
First Trust Energy Infrastructure Fund (the “Fund”) (NYSE: FIF) has
declared a long-term capital gain distribution of $0.45 per share
payable on December 10, 2015, to shareholders of record as of December
3, 2015. Of this amount, $0.11 per share is considered FIF’s monthly
distribution with the remaining $0.34 per share a special distribution.
The ex-dividend date is expected to be December 1, 2015. The monthly
distribution information for the Fund appears below.
First Trust Energy Infrastructure Fund (FIF):
Monthly Distribution per share:
Distribution Rate based on the November 18, 2015 NAV of $18.65:
Distribution Rate based on the November 18, 2015 closing market
price of $16.24:
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 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 2015 distributions will be made after
the end of 2015.
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, Canadian income trusts and their
successor companies, 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. To generate additional
income, the Fund expects to write (or sell) covered call options.
First Trust Advisors L.P., the Fund’s investment advisor, along with its
affiliate, First Trust Portfolios L.P., are privately-held companies
which provide a variety of investment services, including asset
management and financial advisory services, with collective assets under
management or supervision of approximately $112 billion as of October
31, 2015, through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts.
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 October 31, 2015,
EIP managed or supervised approximately $4.9 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.
Principal Risk Factors: Investment in this Fund involves investment and
market risk, market discount from net asset value risk, management risk,
potential conflicts of interest risk, investment concentration risk,
industry specific risk, cash flow risk, MLP tax risk, non-U.S.
securities risk, failure to qualify as a regulated investment company
risk, tax law change risk, deferred tax risk, delay in investing the
proceeds risk, equity securities risk, Canadian income equities risk,
leverage risk, derivatives risk, portfolio turnover risk, competition
risk, restricted securities risk, liquidity risk, valuation risk,
interest rate risk, non-diversification risk, anti-takeover provisions,
inflation risk, certain affiliations and secondary market for the Fund’s
common shares. The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
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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