First Trust Energy Income and Growth Fund Declares its Quarterly Distribution of $0.30 Per Share

Rhea-AI Summary

The First Trust Energy Income and Growth Fund (FEN) has announced a quarterly distribution of $0.30 per share, payable on January 31, 2022. The ex-dividend date is January 21, 2022, with a distribution rate of 8.17% based on the January 7, 2022 NAV of $14.69 and 7.68% based on the closing price of $15.63. The Fund focuses on investments in MLPs and energy sector securities, seeking high after-tax returns. Future distributions may include tax-deferred returns of capital.

Positive

• Quarterly distribution of $0.30 per share announced.
• Distribution rate of 8.17% based on January 7 NAV.
• Focus on high after-tax total return with current distributions.

Negative

• Investment returns may fluctuate, affecting share value.
• Concentration in energy sector increases susceptibility to industry risks.
• Leverage use may magnify losses and additional risks.

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Energy Income and Growth Fund (the "Fund") (NYSE American: FEN) has declared the Fund's regularly scheduled quarterly distribution of $0.30 per share. The distribution will be payable on January 31, 2022, to shareholders of record as of January 24, 2022. The ex-dividend date is expected to be January 21, 2022. The quarterly distribution information for the Fund appears below.

First Trust Energy Income and Growth Fund (FEN):

Distribution per share:		$0.30
Distribution Rate based on the January 7, 2022 NAV of $14.69:		8.17%
Distribution Rate based on the January 7, 2022 closing market price of $15.63:		7.68%

It is anticipated that, due to the tax treatment of cash distributions made by the publicly-traded master limited partnerships ("MLPs") in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. The final determination of the source and tax status of all distributions paid in 2022 will be made after the end of 2022 and will be provided on Form 1099-DIV.

The Fund is a non-diversified, closed-end management investment company that seeks a high level of after-tax total return with an emphasis on current distributions paid to shareholders. The Fund focuses on investing in MLPs and related public entities in the energy sector which the Fund's investment sub-advisor believes offer opportunities for income and growth. The Fund is treated as a regular corporation, or a "C" corporation, for United States federal income tax purposes and, as a result, is subject to corporate income tax to the extent the Fund recognizes taxable income.

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 $223 billion as of December 31, 2021 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.

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 December 31, 2021, EIP managed or supervised approximately $4.6 billion in client assets.

Principal Risk Factors: 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 non-diversified closed-end management investment company.

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, 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. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

Because the Fund is concentrated in securities issued by energy companies, energy sector MLPs and MLP-related entities, it will be more susceptible to adverse economic or regulatory occurrences affecting those industries, including high interest costs, high leverage costs, the effects of economic slowdown, surplus capacity, increased competition, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other 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.

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.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

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 NYSE American 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220110005980/en/

Press Inquiries, Ryan Issakainen, 630-765-8689

Analyst Inquiries, Jeff Margolin, 630-915-6784

Broker Inquiries, Sales Team, 866-848-9727

Source: First Trust Energy Income and Growth Fund

FAQ

What is the recent distribution declared by FEN?

The First Trust Energy Income and Growth Fund declared a distribution of $0.30 per share.

When is the ex-dividend date for FEN?

The ex-dividend date for FEN is expected to be January 21, 2022.

What is the distribution rate based on the NAV for FEN?

The distribution rate based on the January 7, 2022 NAV is 8.17%.

What are the investment focuses of FEN?

FEN focuses on investing in master limited partnerships (MLPs) and related public entities in the energy sector.

What are the potential risks associated with investing in FEN?

Investing in FEN carries risks such as market fluctuations, concentration in the energy sector, and the use of leverage.