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WHEATON, Ill.–(BUSINESS WIRE)–The First Trust Energy Income and Growth Fund (the “Fund”) (NYSE American: FEN) has declared the Fund’s regular quarterly distribution of $0.30 per share. The distribution will be payable on October 31, 2022 to shareholders of record on October 24, 2022. The ex-dividend date is expected to be October 21, 2022. Information on the Fund’s quarterly distribution is set out below.
First Trust Energy Growth and Income Fund (SWAMP):
Breakdown per share:
Distribution rate based on the October 10, 2022 NAV of $14.36:
Distribution rate based on October 10, 2022 closing price of $15.01:
It is expected that due to the tax treatment of cash distributions made by publicly traded master limited partnerships (“MCPs”) in which the Fund invests, a portion of the distributions the Fund pays to common shareholders may consist of capital repayment. The final determination of the source and tax status of all distributions paid in 2022 will be made after the end of 2022 and will be provided on Form 1099-DIV.
The Fund is a non-diversified closed-end investment company that seeks a high level of after-tax total return with an emphasis on current distributions to shareholders. The Fund focuses on investing in MLPs and related public energy sector entities that the Fund’s investment sub-advisor believes offer opportunities for income and growth. The Fund is treated as an ordinary corporation, or “C” corporation, for United States federal income tax purposes and, accordingly, is subject to corporation tax to the extent that the Fund recognizes taxable income.
First Trust Advisors LP (“FTA”) is a federally registered investment adviser and acts as the investment adviser to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a FINRA-registered broker, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $178 billion as of September 30, 2022 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and accounts managed separately. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of UCITS units and UCITS creation units. FTA and FTP are based in Wheaton, Illinois.
Energy Income Partners, LLC (“EIP”) acts as the investment sub-advisor to the Fund 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 advisers specializing in this field. As of September 30, 2022, EIP managed or oversaw approximately $4.8 billion in client assets.
Main risk factors: Risks are inherent in any investment. Certain risks applicable to the Fund are identified below, including the risk that you will lose some or all of your investment in the Fund. The main risks associated with an investment in the Fund are described in the Fund’s annual reports to shareholders. The order of the risk factors below does not indicate the importance of any particular risk factor. The Fund also files reports, proxy statements and other information available for review.
Main risk factors: Risks are inherent in any investment. Certain risks applicable to the fund are identified below. The main risks linked to an investment in the fund are specified in the fund’s shareholder reports. The order of the risk factors below does not indicate the importance of any particular risk factor.
Past performance is not indicative of future results. Investment returns and the market value of an investment in the Fund will fluctuate. Stocks, 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 suitable for all investors.
The Fund is subject to risks, in particular because it is a non-diversified closed-end investment company.
The securities held by a fund, as well as the 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 security price trends. A fund’s shares could lose value or underperform other investments because of the risk of loss associated with these market movements. In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious diseases or other public health issues, recessions or other events could have a material adverse impact on a funds and their investments. Such events may affect certain geographies, countries, sectors and industries more significantly than others. In February 2022, Russia invaded Ukraine, which caused and may continue to cause significant market disruption and market volatility in Russia, Europe and the United States. Hostilities and the sanctions resulting from these hostilities could have a significant impact on certain investments of the fund as well as on the performance of the fund. The global COVID-19 pandemic and the resulting policies adopted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the United States has resumed “reasonably” normal business activity, many countries continue to impose containment measures. Moreover, there is no guarantee that the vaccines will be effective against emerging variants of the disease.
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 events affecting these industries, including costs high interest rates, high debt costs, the effects of the economic downturn, excess capacity, increased competition, uncertainties regarding the availability of fuels at reasonable prices, the effects of energy conservation policies and other factors.
The Fund’s use of derivatives may result in greater losses than if they had not been used, may force the Fund to sell or buy portfolio securities at inopportune times, may limit the amount of appreciation the Fund may realize on an investment or may cause the Fund to hold a security that it might otherwise sell.
Investment in non-US securities is subject to the risk of currency fluctuations and the economic and political risks associated with those foreign countries.
The use of leverage may involve additional risks and costs and may magnify the effect of any loss.
The risks linked to an investment in the fund are specified in the report to shareholders and in other regulatory documents.
The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not represent itself as giving advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Finance professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.
The daily US NYSE closing price and net asset value per share of the Fund and other information can be viewed at https://www.ftportfolios.com or by calling 1-800-988-5891.
Media inquiries: Ryan Issakainen, 630-765-8689
Analyst inquiries: Jeff Margolin, 630-915-6784
Broker Inquiries: Sales Team, 866-848-9727
Source: First Trust Energy Growth and Income Fund