WHEATON, Ill.--(BUSINESS WIRE)--The Board of Trustees of First Trust Energy Infrastructure Fund (the "Fund") (NYSE: FIF), CUSIP 33738C103, previously approved a managed distribution policy for the Fund (the "Managed Distribution 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.
The Fund has declared a distribution payable on June 15, 2020, to shareholders of record as of June 2, 2020, with an ex-dividend date of June 1, 2020. 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 May 31, 2020, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
5 Yr. Avg. |
|||||||||||||
Annualized
|
Annual
|
|||||||||||||||||||||||||
Fund |
Fund |
Fiscal |
Total Current |
Current Distribution ($) |
Current Distribution (%) |
Dist. Rate as a |
Return |
|||||||||||||||||||
Ticker |
Cusip |
Year End |
Distribution |
NII |
STCG |
LTCG |
|
ROC (2) |
NII |
STCG |
LTCG |
ROC(2) |
% of NAV(3) |
on NAV(4) |
||||||||||||
FIF (5) |
33738C103 |
11/30/2020 |
$0.06250 |
$0.01539 |
- |
- |
$0.04711 |
24.62% |
- |
- |
75.38% |
5.97% |
-4.90% |
|||||||||||||
Total |
Cumulative |
Cumulative
|
||||||||||||||||||||||||
Fund |
Fund |
Fiscal |
Cumulative
|
Cumulative Distributions Fiscal YTD ($) |
Cumulative Distributions Fiscal YTD (%) |
Fiscal YTD
|
YTD Total
|
|||||||||||||||||||
Ticker |
Cusip |
Year End |
Distributions(1) |
NII |
STCG |
LTCG |
ROC (2) |
NII |
STCG |
LTCG |
ROC(2) |
a % of NAV(3) |
on NAV(4) |
|||||||||||||
FIF (5) |
33738C103 |
11/30/2020 |
$0.67500 |
$0.16625 |
- |
- |
$0.50875 |
24.62% |
- |
- |
75.38% |
5.37% |
-21.55% |
|||||||||||||
(1) Includes the most recent monthly distribution paid on June 15, 2020.
(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, 2020.
(4) Total Returns are through May 31, 2020.
(5) The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships 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 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 $135 billion as of May 31, 2020 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 May 31, 2020, EIP managed or supervised approximately $4.3 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. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be appropriate for all investors.
Principal Risk Factors: 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. The impact of this COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.
Because the Fund is concentrated in securities issued by energy infrastructure companies, it will be more susceptible to adverse economic or regulatory occurrences affecting that industry, 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 invests in securities of non-U.S. issuers which are subject to higher volatility than securities of U.S. issuers. Because the Fund invests in non-U.S. securities, you may lose money if the local currency of a non-U.S. market depreciates against the U.S. dollar.
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.
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 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 advisors 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 U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward‑looking statements due to numerous factors. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward‑looking statements, which generally are not historical in nature. Forward‑looking statements are subject to certain risks and uncertainties that could cause actual results to differ from those anticipated in any forward-looking statements. You should not place undue reliance on forward‑looking statements, which speak only as of the date they are made. The Fund undertakes no responsibility to update publicly or revise any forward‑looking statements.
