First Trust Energy Infrastructure Fund increases its monthly common stock distribution to $0.0645 per share for January | Daily News Byte


WHEATON, Ill.–(BUSINESS WIRE)–First Trust Energy Infrastructure Fund (the “Fund”) (NISE: FIF ) increased its regularly scheduled monthly common stock distribution to $0.0645 per share from $0.064 per share. The distribution will be paid on January 17, 2023 to shareholders of record as of January 4, 2023. The ex-dividend date is expected to be January 3, 2023. Monthly distribution information for the Fund appears below.

The first trust fund for energy infrastructure (FIF):

Distribution by share:


Distribution rate based on December 19, 2022 NAV of $16.65:


Distribution rate based on December 19, 2022 closing market price of $14.47:


Increase from previous distribution of $0.064:


The Fund’s Board of Directors has approved a managed distribution policy for the Fund (the “Plan”) in reliance on exceptional relief obtained from the Securities and Exchange Commission that permits the Fund to make periodic distributions of long-term capital gains as often as monthly in each taxable year. Under the Plan, the Fund intends to continue to pay its periodic monthly distribution of $0.0645 per share which reflects the Fund’s distributive cash flow. A portion of this monthly distribution may include long-term capital gains. This can reduce the distribution of long-term capital gains that is required at the end of the year by distributing long-term capital gains throughout the year. The annual distribution rate is independent of the performance of the Fund during any period. Accordingly, you should not draw conclusions about the investment performance of the Fund from the amount of any distribution or from the terms of the Plan.

Distributions may consist of net investment income earned by the Fund, net short-term and long-term capital gains and/or tax-deferred returns of capital. Tax-deferred return of capital, if any, is primarily due to the tax treatment of cash distributions made by master limited partnerships (“MLPs”) in which the Fund invests. The final determination of the source of tax status for all 2023 distributions will be made after the end of 2023 and will be submitted on Form 1099-DIV.

The Fund is a non-diversified closed-end investment company that seeks to provide a high level of total return with an emphasis on ongoing distributions paid to shareholders. The fund strives to achieve its investment goals by investing primarily in the securities of companies dealing in the energy infrastructure sector. These companies generally include publicly traded MLPs and limited liability companies taxed as partnerships, MLP affiliates, YieldCos, pipeline companies, utilities, and other companies that derive at least 50% of their income from operating or providing services to supporting infrastructure assets such as pipelines, power transmission, and oil and natural gas storage in the oil, natural gas, and power generation industries (collectively, “Energy Infrastructure Companies”). In order to generate additional income, the Fund expects to write (or sell) covered call options on up to 35% of the managed assets in the Fund’s portfolio.

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 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.

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

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 to the fund.

As a writer (seller) of a call option, the Fund renounces, during the term of the option, the opportunity to profit from the increase in the market value of the portfolio securities covering the option above the sum of the premium and the strike price of the call option, but retains the risk of loss in the event of a fall in the price of the underlying security from values. The value of call options written by the Fund may be adversely affected if the market for the option declines or becomes illiquid. There can be no assurance that a liquid market will exist when a Fund seeks to close an option position.

If short-term interest rates are lower than the Fund’s fixed rate of interest payments, the swap will reduce net earnings from the common stock. In addition, the default of the counterparty to the exchange transaction may also adversely affect the performance of the common stock.

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.

The Fund’s daily NYSE closing price and net asset value per share, as well as other information, can be found at or by calling 1-800-988-5891.


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