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 more frequently than
otherwise permitted with respect to its common shares subject to
certain conditions.
The Fund has declared a distribution payable on June 28, 2024,
to shareholders of record as of June 21, 2024, with an ex-dividend
date of June 21, 2024. 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 June 30, 2024, 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
12/31/2024
$0.35000
$0.03640
-
-
$0.31360
10.40%
-
-
89.60%
6.97%
13.48%
Total
Cumulative
Cumulative Fiscal
Fund
Fund
Fiscal
Cumulative Fiscal YTD
Cumulative Distributions
Fiscal YTD ($)
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
12/31/2024
$0.66500
$0.06916
-
-
$0.59584
10.40%
-
-
89.60%
3.31%
8.99%
(1) Includes the most recent quarterly distribution paid on June
28, 2024. (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 May 31, 2024. (4) Total
Returns are through May 31, 2024.
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. ("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 May
31, 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.
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 May 31, 2024,
Chartwell had approximately $11.8 billion in assets under
management.
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.
Market risk is the risk that a particular security, or shares of
a fund in general may fall in value. Securities are subject to
market fluctuations caused by such factors as general economic
conditions, political events, regulatory 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, spread of infectious
disease or other public health issues, recessions, natural
disasters or other events could have significant negative impact on
a fund.
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.
Shares of closed-end investment companies such as the Fund
frequently trade at a discount from their net asset value. The Fund
cannot predict whether its common shares will trade at, below or
above net asset value.
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.
Premiums from writing (selling) call options and dividends and
interest payments made by the securities in the Fund's portfolio
can vary widely over time.
An adverse event affecting an issuer of equity securities, such
as an unfavorable earnings report, may depress the value of a
particular equity security held by the Fund. Also, the prices of
equity securities are sensitive to general movements in the stock
market and a drop in the stock market may depress the prices of
equity securities to which the Fund has exposure. 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.
The Fund may not invest 25% or more of its total assets in
securities of issuers in any single industry. If the Fund is
focused in an industry, it may present more risks than if it were
broadly diversified over numerous industries of the economy.
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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240628329070/en/
Inquiries: Derek Maltbie (630) 765-8499
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