First Trust Dynamic Europe Equity Income Fund Issues Notice Regarding November 2023 Distribution
- The Fund has approved a Managed Distribution Plan to make periodic distributions of long-term capital gains as frequently as monthly each tax year, providing shareholders with regular income.
- The upcoming distribution payable on November 15, 2023, to shareholders of record as of November 2, 2023, offers an opportunity for income for investors.
- The Fund's reliance on exemptive relief received from the Securities and Exchange Commission demonstrates its commitment to complying with regulatory requirements and providing transparency to shareholders.
- None.
The Fund has declared a distribution payable on November 15, 2023, to shareholders of record as of November 2, 2023, with an ex-dividend date of November 1, 2023. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income ("NII"); net realized short-term capital gains ("STCG"); net realized long-term capital gains ("LTCG"); and return of capital ("ROC"). These estimates are based upon information as of October 31, 2023, are calculated based on a generally accepted accounting principles ("GAAP") basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.
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5 Yr. Avg. |
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Annualized Current |
Annual Total |
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Fund |
Fund |
Fiscal |
Total Current |
Current Distribution ($) |
Current Distribution (%) |
Dist. Rate as a |
Return |
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Ticker |
Cusip |
Year End |
Distribution |
NII |
STCG |
LTCG |
ROC (2) |
NII |
STCG |
LTCG |
ROC(2) |
% of NAV(3) |
on NAV(4) |
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FDEU |
33740D107 |
12/31/2023 |
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Fund |
Fund |
Fiscal |
Total
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Cumulative Distributions Fiscal YTD ($) |
Cumulative Distributions Fiscal YTD (%) |
Cumulative
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Cumulative Fiscal
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Ticker |
Cusip |
Year End |
Distributions(1) |
NII |
STCG |
LTCG |
ROC (2) |
NII |
STCG |
LTCG |
ROC(2) |
a % of NAV(3) |
on NAV(4) |
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FDEU |
33740D107 |
12/31/2023 |
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- |
- |
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- |
- |
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(1) Includes the most recent monthly distribution paid on November 15, 2023. |
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(2) The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." |
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(3) Based on Net Asset Value ("NAV") as of October 31, 2023. |
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(4) Total Returns are through October 31, 2023. |
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The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.
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
Janus Henderson Investors US LLC, formerly Janus Capital Management LLC ("Janus Henderson" or the "Sub-Advisor"), a legal entity of Janus Henderson Investors, serves as the Fund's investment sub-advisor. Janus Henderson Investors is headquartered in
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.
The Fund is subject to risks, including the fact that it is a diversified closed-end management investment company.
Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors 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. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.
Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to reverse previously implemented quantitative easing. 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. In February 2022,
Net investment income paid by the Fund to its shareholders is derived from the premiums it receives from writing (selling) call options and from the dividends and interest it receives from the equity securities and other investments held in the Fund's portfolio and short-term gains thereon. 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. Dividends on equity securities are not fixed but are declared at the discretion of an issuer's board of directors. 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. The Fund cannot assure as to what percentage of the distributions paid on the common shares, if any, will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates for individuals than are ordinary income and short-term capital gains.
Because the Fund will invest primarily in securities of non-
Investments in securities of issuers located in emerging market countries are considered speculative and there is a heightened risk of investing in emerging markets securities. Financial and other reporting by companies and government entities also may be less reliable in emerging market countries. Shareholder claims that are available in the
Political or economic disruptions in European countries, even in countries in which a fund is not invested, may adversely affect security values and thus the fund's holdings. A significant number of countries in
Investments in issuers located in the
The Fund will engage in practices and strategies that will result in exposure to fluctuations in foreign exchange rates, thus subjecting it to foreign currency risk.
The market value of REIT shares and the ability of the REITs to distribute income may be adversely affected by several factors.
The Fund's use of derivatives may result in losses greater than if they had not been used, may require the Fund to sell or purchase portfolio securities at inopportune times, may limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold a security that it might otherwise sell.
Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
In the event of conversion to an open-end management investment company, the Common Shares would cease to be listed on the NYSE or other national securities exchange, and such Common Shares would thereafter be redeemable at NAV at the option of the Common Shareholder, rather than traded in the secondary market at market price, which, for closed-end fund shares, may at times be at a premium to NAV. Any Borrowings or Preferred Shares of the Fund would need to be repaid or redeemed upon conversion and, accordingly, a portion of the Fund's portfolio may need to be liquidated, potentially resulting in, among other things, lower current income.
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 professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Forward-Looking Statements
Certain statements made in this press release that are not historical facts are referred to as "forward‑looking statements" under the
View source version on businesswire.com: https://www.businesswire.com/news/home/20231115458145/en/
Inquiries:
Derek Maltbie (630) 765-8499
Source: First Trust Dynamic Europe Equity Income Fund
FAQ
What is the managed distribution policy approved by First Trust Dynamic Europe Equity Income Fund?
When is the upcoming distribution payable to shareholders?