WHEATON, Ill.--(BUSINESS WIRE)--
The Board of Trustees of First Trust Enhanced Equity Income Fund (the “Fund”) (NYSE: FFA), CUSIP 337318109, 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 September 29, 2017, to shareholders of record as of September 25, 2017, with an ex-dividend date of September 22, 2017. 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 September 30, 2017, 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 Current | Annual Total | ||||||||||||||||||||||||||||
| 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) | ||||||||||||||||
| FFA | 337318109 | 12/31/2017 | $0.2850 | - | - | $0.2850 | - | - | - | 100.00% | - | 7.03% | 11.13% | ||||||||||||||||
| Total | Cumulative | Cumulative Fiscal | |||||||||||||||||||||||||||
| Fund | Fund | Fiscal | Cumulative Fiscal YTD | Cumulative Distributions Fiscal YTD ($) | Cumulative Distributions Fiscal YTD (%) | Fiscal YTD Distributions as | YTD Total Return | ||||||||||||||||||||||
| 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 | 12/31/2017 | $0.8200 | $0.1489 | - | $0.2850 | $0.3861 | 18.16% | - | 34.76% | 47.08% | 5.06% | 10.45% | ||||||||||||||||
| (1) | Includes the most recent quarterly distribution paid on September 29, 2017. | |
| (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 August 31, 2017. | |
| (4) | Total Returns are through August 31, 2017. | |
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., 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 and financial advisory services, with collective assets under management or supervision of approximately $109 billion as of August 31, 2017 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.
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 August 31, 2017, Chartwell had approximately $8.0 billion in assets under management.
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: Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting the issuers or their industries occur.
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.
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-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 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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170929005775/en/
