First Trust Enhanced Equity Income Fund Issues Notice Regarding June 2024 Distribution
The First Trust Enhanced Equity Income Fund (NYSE: FFA) announced a managed distribution policy based on exemptive relief from the SEC, allowing it to distribute long-term capital gains more frequently.
For June 2024, a distribution of $0.35 per share is declared, payable on June 28, 2024, to shareholders of record as of June 21, 2024. The distribution includes $0.0364 from net investment income and $0.3136 as return of capital. Cumulative distributions for fiscal 2024 amount to $0.665 per share, with $0.06916 from net investment income and $0.59584 as return of capital.
The Fund warns that the distribution should not be used to assess investment performance. Actual tax reporting and the final source of distributions will be provided with Form 1099-DIV. The Fund emphasizes investment risks, including market fluctuations, geopolitical events, and specific risks related to the Fund's operations.
First Trust Advisors, with $226 billion in assets, is the Fund's advisor, and Chartwell Investment Partners serves as the sub-advisor, managing $11.8 billion in assets as of May 31, 2024.
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The Fund has declared a distribution payable on June 28, 2024, to shareholders of record as of June 21, 2024, with an ex-dividend date of June 21, 2024. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income ("NII"); net realized short-term capital gains ("STCG"); net realized long-term capital gains ("LTCG"); and return of capital ("ROC"). These estimates are based upon information projected through June 30, 2024, are calculated based on a generally accepted accounting principles ("GAAP") basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.
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5 Yr. Avg. |
Annualized Current |
Annual Total |
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Fund |
Fund |
Fiscal |
Total Current |
Current Distribution ($) |
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) |
FFA |
337318109 |
12/31/2024 |
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Total |
Cumulative |
Cumulative Fiscal |
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Fund |
Fund |
Fiscal |
Cumulative Fiscal YTD |
Cumulative Distributions Fiscal YTD ($) |
Cumulative Distributions Fiscal YTD (%) |
Fiscal YTD
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YTD Total Return |
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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) |
FFA |
337318109 |
12/31/2024 |
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(1) Includes the most recent quarterly distribution paid on June 28, 2024.
(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."
(3) Based on Net Asset Value ("NAV") as of May 31, 2024.
(4) Total Returns are through May 31, 2024.
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
Chartwell Investment Partners, LLC ("Chartwell") serves as the Fund's investment sub-advisor and is an investment firm focusing on institutional, sub-advisory, and private client relationships. The firm is a research-based equity and fixed-income manager with a disciplined, team-oriented investment process. As of May 31, 2024, Chartwell had approximately
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.
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. Ongoing armed conflicts between
Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.
The Fund may write (sell) covered call options on all or a portion of the equity securities held in the Fund's portfolio. The use of options may require the Fund to sell portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold an equity security that it might otherwise sell.
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.
An adverse event affecting an issuer of equity securities, such as an unfavorable earnings report, may depress the value of a particular equity security held by the Fund. Also, the prices of equity securities are sensitive to general movements in the stock market and a drop in the stock market may depress the prices of equity securities to which the Fund has exposure. 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. There can be no assurance as to what portion of the distributions paid to the Fund's Common Shareholders will consist of tax-advantaged qualified dividend income.
Investment in non-
The Fund may not invest
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.
Forward-Looking Statements
Certain statements made in this press release that are not historical facts are referred to as "forward‑looking statements" under the
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Inquiries: Derek Maltbie (630) 765-8499
Source: First Trust Enhanced Equity Income Fund
FAQ
What is the June 2024 distribution declared by the First Trust Enhanced Equity Income Fund (NYSE: FFA)?
How is the June 2024 distribution of FFA composed?
What is the cumulative fiscal year-to-date distribution for FFA in 2024?
When is the ex-dividend date for FFA's June 2024 distribution?
What is the risk warning provided by First Trust Enhanced Equity Income Fund (FFA)?