2022-12-15 | NISE:FIF | Announcement | Daily News Byte

2022-12-15 |  NISE:FIF |  Announcement

 | Daily News Byte

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The board of directors of First Trust Energy Infrastructure Fund (the “Fund”) (NISE: FIF), CUSIP 33738C103, has previously approved a managed distribution policy for the Fund (the “Managed Distribution Plan”) in reliance on exceptional relief obtained from the Securities and Exchange Commission allowing Fund to make periodic distributions of long-term capital gains as often as monthly in each tax year.

The Fund declared a distribution payable on December 15, 2022 to shareholders of record as of December 2, 2022, with an ex-dividend date of December 1, 2022. This Notice is intended to provide you with information about the sources of your Fund&CloseCurliQuote ;s distribution. You should not draw conclusions about the Fund’s investment performance based on the amount of its distribution or the terms of its Managed Distribution Plan.

The following tables show the estimated amounts of current distributions and cumulative distributions paid for this fiscal year to date to 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 on capital (“ROC”). These estimates are based on information as of November 30, 2022, are calculated on the basis of generally accepted accounting principles (“GAAP”) and include retained net investment income at the end of the previous fiscal year. Amounts and sources of distribution are shown per ordinary shares.

5 years Aug.

Annualized Current

Annual Total

fund

fund

Fiscal

Total current

Current Distribution ($)

Current Distribution (%)

Dist. Rate as a

return

Ticker

Suck

End of the year

Distribution

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

% NAV(3)

on NAV(4)

FIF (5)

33738C103

30.11.2023

$0.06400

$0.06400

100.00%

4.28%

6.56%

In total

Cumulatively

Cumulative fiscal

fund

fund

Fiscal

Cumulative fiscal since the beginning of the year

Cumulative fiscal year-to-date distribution ($)

Cumulative distributions of the fiscal year-to-date (%)

Fiscal distribution since the beginning of the year as

Total return since the beginning of the year

Ticker

Suck

End of the year

Distributions(1)

NII

STCG

LTCG

ROC (2)

NII

STCG

LTCG

ROC(2)

and % NAV(3)

on NAV(4)

FIF (5)

33738C103

30.11.2023

$0.06400

$0.06400

100.00%

0.36%

29.10%

(1) Includes the last monthly distribution paid on December 15, 2022.

(2) The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, part of your distribution may be a return of capital. A return of capital may occur, for example, when part or all of the money you invested in the Fund is returned to you. The return on capital distribution does not necessarily reflect the investment performance of the Fund and should not be confused with “yield” or “income”.

(3) Based on net asset value (“NAV”) as of November 30, 2022.

(4) Total refunds are until November 30, 2022.

(5) The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, part of the distributions made by the Fund to regular shareholders may consist of tax-deferred returns of capital.

The amounts and sources of distribution reported in this notice are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of the fiscal year and may be subject to change based on tax regulations. The fund will send you a calendar year Form 1099-DIV 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 LP (“FTA”) is a federally registered investment adviser and serves as the Fund’s investment adviser. FTA and its affiliate First Trust Portfolios LP (“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 $199 billion as of November 30, 2022 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and separately managed accounts. FTA is the supervisor of investment funds First Trust unit, while FTP is the sponsor. FTP is also a distributor of mutual fund units and exchange-traded fund creation units. FTA and FTP are located in Wheaton, Illinois.

Energi Income Partners, LLC (“EIP”) serves as the Fund’s investment sub-adviser 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 first investment advisors specialized in this area. As of November 30, 2022, EIP managed or supervised approximately $5.5 billion in client assets.

Main risk factors: Risks are inherent in any investment. Certain risks that apply to the Fund are identified below, including the risk that you could lose some or all of your investment in the Fund. The main risks of investing in the Fund are listed in the annual reports of the Fund’s shareholders. The order of risk factors listed below does not indicate the importance of any particular risk factor. The Fund also files reports, statements and other information that are available for review.

Past performance is no guarantee of future results. Investment returns and the market value of investments in the Fund will vary. Shares, when sold, may be worth more or less than the original price. There can be no guarantee that the investment objectives of the Fund will be achieved. The Fund may not be suitable for all investors.

The Fund is subject to risks, including the fact that it is a non-diversified closed-end investment management company.

The securities held by the fund, as well as the shares of the 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 security prices. The Fund’s shares 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, the spread of infectious diseases or other public health problems, recessions or other events may have a material adverse effect on the fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine which caused and could cause significant market disruption and volatility in markets in Russia, Europe and the United States. Hostilities and sanctions arising from those hostilities can have a significant impact on the investments of certain funds, as well as on the fund’s performance. The global COVID-19 pandemic and subsequent policies by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the US has resumed “reasonably” normal business activities, many countries continue to impose lockdown measures. In addition, there is no guarantee that vaccines will be effective against emerging disease variants.

Because the Fund is concentrated in securities issued by energy infrastructure companies, it will be more susceptible to adverse economic or regulatory events affecting that industry, including high interest costs, high leverage costs, the effects of an economic slowdown, overcapacity, increased competition, uncertainty regarding with the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Investments in MLP securities involve certain risks that are different from or in addition to the risks of investing in common stocks. The number of energy-related MLPs has declined since 2014. The industry is witnessing consolidation or streamlining of corporate structures where the MLP equity arm is eliminated. As a result of the foregoing, the Fund’s MLP investments may become less diversified and the Fund may increase its non-MLP investments consistent with its investment objective and policy. Changes in tax laws or regulations, or interpretations thereof in the future, may adversely affect the Fund or the MLPs, MLP-affiliated entities and other energy and power companies in which the Fund invests.

The Fund invests in securities of non-US issuers that are subject to greater volatility than securities of US issuers. Because the Fund invests in non-U.S. securities, you may lose money if the local currency in the 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 qualified tax-advantaged dividend income.

To the extent the fund invests in floating or variable rate obligations that use the London Interbank Rate (“LIBOR”) as a reference interest rate, it is subject to LIBOR risk. The UK Financial Conduct Authority, which regulates LIBOR, has stopped making LIBOR available as a reference rate during a phase-out period commencing on 31 December 2021. There is no guarantee that any alternative reference rate, including the secured overnight funding rate (” SOFR”) will be similar to or produce the same value or economic equivalence as LIBOR or the instruments using the alternative rate will have the same volume or liquidity. The unavailability or substitution of LIBOR may affect the value, liquidity or return of certain investments in the fund and may result in costs incurred in connection with closing positions and entering new trades. Any potential effects of the transition from LIBOR to the fund or to certain instruments in which the fund invests may be difficult to determine, may vary depending on a number of factors and may result in losses for the fund.

The use of leverage may result in additional risk and costs, and may increase the effect of any losses.

The risks of investing in the Fund are set out in shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment recommendation or advice to any particular person. In providing this information, First Trust does not undertake to provide advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently assessing the risks of investments 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 US federal securities laws. Actual future results or events may differ materially from those anticipated in any forward-looking statements due to a number of factors. In general, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements that are generally 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. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no responsibility to publicly update or revise any forward-looking statements.

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