First Trust Energy Income and Growth Fund (the "Fund") (NYSE
American: FEN) has declared its final common share distribution
rate in the amount of $0.30 per share, which as previously
announced on April 19, 2024, will be payable on May 2, 2024, to
shareholders of record as of April 29, 2024. The ex-dividend date
is expected to be April 26, 2024. The final 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 April 23,
2024 NAV of $16.36:
7.33%
Distribution Rate based on the April 23,
2024 closing market price of $16.16:
7.43%
The final distribution is attributable to the Fund’s remaining
estimated accumulated earnings and profits, which are required to
be distributed in connection with the previously approved
merger.
The distribution will be paid entirely in cash, with no option
for dividend reinvestment.
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 the
distribution 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 2024 will be
made after the end of 2024 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 $226 billion as of March
28, 2024 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 energy, utility, and other energy infrastructure
securities. EIP is one of the early investment advisors
specializing in this area. As of March 31 2024, EIP managed or
supervised approximately $5.4 billion in client assets.
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.
The Fund is subject to risks, including the fact that it is a
non-diversified closed-end management investment company.
Market risk is the risk that a particular investment, or shares
of a fund in general may fall in value. Investments held by the
Fund are subject to market fluctuations caused by real or perceived
adverse economic conditions, political events, regulatory factors
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,
market manipulation, government defaults, government shutdowns,
regulatory actions, political changes, diplomatic developments, the
imposition of sanctions and other similar measures, spread of
infectious disease or other public health issues, recessions,
natural disasters or other events could have significant negative
impact on a fund and its investments.
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 Russia and Ukraine in Europe and among Israel, Hamas and
other militant groups in the Middle East, have caused and could
continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the
United States. The hostilities and sanctions resulting from those
hostilities have and could continue to have a significant impact on
certain fund investments as well as fund performance and liquidity.
The COVID-19 global pandemic, or any future public health crisis,
and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and
uncertainty in global financial markets, negatively impacting
global growth prospects.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424251723/en/
Press Inquiries: Ryan Issakainen, 630-765-8689 Analyst
Inquiries: Jeff Margolin, 630-915-6784 Broker Inquiries: Sales
Team, 866-848-9727
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