WHEATON, Ill.--(BUSINESS WIRE)--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:||$0.11|
|Distribution Rate based on the November 18, 2015 NAV of $18.65:||7.08%|
|Distribution Rate based on the November 18, 2015 closing market price of $16.24:||8.13%|
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.