WHEATON, Ill.--(BUSINESS WIRE)--Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (the “Fund”) (NYSE: MFD) today increased its regularly scheduled quarterly distribution to $0.35 per share from $0.225 per share. The distribution will be payable on February 28, 2011 to shareholders of record as of February 23, 2011. The ex-dividend date is expected to be February 18, 2011.
|
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (MFD): |
|||
| Distribution per share: | $0.35 | ||
| Distribution Rate based on the February 9, 2011 NAV of $16.94: | 8.26% | ||
| Distribution Rate based on the February 9, 2011 closing market price of $15.41: | 9.09% | ||
| Increase from previous distribution $0.225: | 55.6% |
MFD’s market price and NAV total return performance has continued to be strong in the first two months of fiscal year 2011. The NAV total return performance for the current year, as well as historically, is primarily attributable to capital appreciation (from both realized capital gains and unrealized capital appreciation) from the Fund’s portfolio holdings. Additionally, but to a lesser extent, the NAV total return performance comprises net investment income earned by the Fund. In accordance with the Fund’s level distribution policy, distributions are expected to be comprised of net investment income, realized short-term capital gains and non-taxable return of capital distributions (which generally are expected to represent unrealized capital appreciation) in order to sustain a stable level of distributions to shareholders. The Fund’s continued positive total return performance has provided the opportunity for an increase in the quarterly distribution from $0.225 to $0.35 per share. The increase in distribution is expected to partially consist of non-taxable return of capital. Net long-term capital gain distributions, if any, are expected to be made annually. The final determination of the source and tax status of this and all distributions paid in 2011 will be made after the end of 2011 and will be provided to shareholders on Form 1099-DIV. Past performance is no guaranteed of future results.
The Fund is a non-diversified, closed-end management investment company, investing predominantly in listed infrastructure and utilities companies in selected developed countries globally. The Fund’s investment objective is to seek a high level of current return consisting of dividends, interest and other similar income, while attempting to preserve capital.
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, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of approximately $43 billion as of January 31, 2011 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.
Macquarie Capital Investment Management LLC ("MCIM") and Four Corners Capital Management, LLC ("Four Corners") are the Fund's investment sub-advisors. Both MCIM and Four Corners operate within Macquarie Funds Group (“MFG”) and are wholly-owned, indirect subsidiaries of Macquarie Group Limited ("Macquarie Group"). Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Macquarie Funds Group is the global investment management business of Macquarie Group. The Fund's Core Component, which consists primarily of equity securities and equity-like securities issued by infrastructure issuers, is managed by MCIM, which started operations in 2004 with the launch of the Fund. MCIM and its Australia-based affiliates managed approximately $2.5 billion of assets as of October 31, 2010, in MFG’s Infrastructure Securities portfolios, which includes the Fund. The Fund's Senior Loan Component is managed by Four Corners. Four Corners was founded in 2001 and became a wholly-owned, indirect subsidiary of Macquarie Group in 2008. Four Corners managed approximately $1.4 billion of assets as of December 31, 2010, with an emphasis on Senior Loans.
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: The Fund invests principally in equity securities of companies in the infrastructure and utilities industry in various developed markets; accordingly the Fund’s NAV will fluctuate with changes in the value of the Fund’s holdings. Investment in infrastructure and utilities issuers is subject to various risks including governmental regulations, high interest costs associated with capital construction programs, costs associated with environmental regulation, the effects of economic slowdown and surplus capacity, competition from other providers of services and other factors. 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. The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.
The Fund’s daily New York Stock Exchange closing price and net asset value per share as well as other related information can be found at www.ftportfolios.com or by calling 1-800-988-5891.