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| Investment Objective/Strategy -
Energy Income and Growth Fund is a non-diversified, closed-end management investment company. The Fund's investment objective is to seek a high level of after-tax total return with an emphasis on current distributions paid to shareholders. The Fund seeks to provide its shareholders with an efficient vehicle to invest in a portfolio of cash-generating securities of energy companies. The Fund will focus on investing in publicly traded master limited partnerships ("MLPs") and related public entities in the energy sector which the Fund's investment sub-advisor believes offer opportunities for income and growth. Under normal market conditions after the invest-up period, the Fund will invest at least 85% of its managed assets in securities of energy companies, energy sector MLPs and MLP-related entities and will invest at least 65% of its managed assets in equity securities of such MLPs and MLP-related entities. |
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| There can be no assurance that the Fund's investment objectives will be achieved. |
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Fund Overview
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| Ticker |
FEN |
| Fund Type |
Energy |
| Investment Advisor |
First Trust Advisors L.P. |
| Portfolio Manager/Sub-Advisor |
Energy Income Partners, LLC |
| Investor Servicing Agent |
BNY Mellon Investment Servicing (US) Inc. |
| CUSIP |
292697109 |
| Fiscal Year-End |
11/30 |
| Exchange |
NYSE Amex |
| Inception |
6/24/2004 |
| Inception Price |
$20.00 |
| Inception NAV |
$19.10 |
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| Share Price and NAV History (Since Inception) |
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Past performance is not indicative of future results.
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Current Fund Data (as of 7/30/2010)
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| Closing Share Price |
$24.65 |
| Closing NAV |
$23.55 |
| Premium to NAV |
4.67% |
| Total Managed Assets |
$306,400,769 |
| Common Shares Outstanding |
9,580,968 |
| Dividend Frequency |
Quarterly |
| Dividend per Share Amt1 |
$0.4500 |
| Distribution Rate2 |
7.30% |
| Daily Volume |
52,361 |
| Average 30-Day Daily Volume |
45,671 |
| Closing Share Price 52-Week High/Low |
$26.25 / $18.77 |
| Closing NAV 52-Week High/Low |
$23.93 / $17.77 |
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Expense Ratios (as of 5/31/2010)
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| Annual Expenses |
Percent of
Net Assets |
Percent of
Managed
Assets |
| |
| Management Fees |
1.35% |
1.00% |
| Other Expenses |
0.36% |
0.26% |
| Total Operating Expenses |
1.71% |
1.26% |
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| Leverage Costs |
0.93% |
0.69% |
| Current Inc Tax Expenses |
4.00% |
2.97% |
| Deferred Inc Tax Expenses |
5.01% |
3.71% |
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| Total Annual Expenses |
11.65% |
8.63% |
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Leverage costs include interest, fees and any upfront/offering costs associated with borrowings by the Fund.
FEN is treated as a regular C corporation for U.S. federal
income tax purposes and as such is obligated to pay federal
and applicable state and foreign corporate taxes on its taxable income.
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Leverage Information (as of
7/30/2010
)3
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| Total Net Assets with Leverage |
$306,400,769 |
| Amount Attributable to Common Shares |
$225,600,769 |
| Amount Attributable to Preferred Shares |
$0 |
| Amount Attributable to Other Borrowings |
$80,800,000 |
| Leverage (% of Total Net Assets) |
26.37% |
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| Cumulative Total Returns
(as of 6/30/2010)4
|
| Period |
Share Price (%) |
NAV (%) |
| 3 Months |
-0.27 |
1.45 |
| 1 Year |
26.94 |
41.74 |
| 3 Years |
8.75 |
-7.51 |
| 5 Years |
48.83 |
38.65 |
| Year to Date |
6.28 |
9.92 |
| Inception to date |
78.68 |
76.35 |
| Calendar Year Returns
(as of 12/31/2009)4
|
| Period |
Share Price (%) |
NAV (%) |
| 2005 |
3.68 |
8.53 |
| 2006 |
23.70 |
24.80 |
| 2007 |
3.07 |
-1.23 |
| 2008 |
-39.80 |
-41.14 |
| 2009 |
87.45 |
62.30 |
| Average Annual Returns
(as of 6/30/2010)4
|
| Period |
Share Price (%) |
NAV (%) |
| 3 Years |
2.84 |
-2.57 |
| 5 Years |
8.28 |
6.75 |
| Inception to date |
10.13 |
9.89 |
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Asset Description |
Percent (%) |
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Midstream Oil |
45.20 |
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Midstream Gas |
31.10 |
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Utility |
9.10 |
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Propane |
4.70 |
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Coal |
4.50 |
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Oil & Gas |
3.70 |
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Marine |
1.70 |
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Diversified Energy* |
0.00 |
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*Amount is less than 0.1%
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| Top Holdings by Issuer (as of 6/30/2010)5 |
| Holding |
Percent (%) |
| Magellan Midstream Partners, L.P. |
8.30 |
| Enterprise Products Partners, L.P. |
6.70 |
| Plains All American Pipeline, L.P. |
5.30 |
| NuStar Energy, L.P. |
4.60 |
| Kinder Morgan Energy Partners, L.P. |
4.20 |
| ONEOK Partners, L.P. |
4.10 |
| Kinder Morgan Management, LLC |
3.90 |
| UGI Corp. |
3.60 |
| Enterprise GP Holdings, L.P. |
3.50 |
| Enbridge Energy Partners, L.P. |
3.40 |
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| Footnotes
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| 1 |
Most recent distribution paid or declared through today's date. Subject to change in the future. |
| 2 |
Distribution rates are calculated by annualizing the most recent distribution paid or declaration through today's date and then dividing by the most recent market price. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. The distribution rate may include realized short-term capital gains and/or a return of capital. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end. |
| 3 |
Included in the Other Borrowings amount is a committed facility agreement with BNP Paribas Prime Brokerage, Inc. with a maximum commitment amount of $90,000,000. The borrowing rate under the facility is equal to the 3-month LIBOR plus 150 basis points. |
| 4 |
Total return is the combination of reinvested dividend income and reinvested capital gains distributions, at prices obtained by the Dividend Reinvestment Plan, if any, and changes in the NAV and Share Price. The NAV total return does not reflect sales load. Past performance is not indicative of future results. |
| 5 |
Information is based upon trade date plus one recording of security transactions. Therefore, trades on the last day of the period are not reflected. |
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The Fund is subject to various risks, including the following:
Investment and Market Risk, Energy Sector Risks, Cash Flow
Risk, Tax Risk of MLPs, Delay in Investing the Proceeds of this
Offering, Equity Securities Risk, Leverage Risk, Derivatives,
Portfolio Turnover Risk, Restricted Securities, Liquidity Risk,
Valuation Risk, Interest Rate Risk, Below Investment Grade
Securities, Non-Diversification, Market Disruption Risk, Anti-
Takeover Provisions and Market Discount From Net Asset
Value.
An investment in securities issued by MLPs, MLP-related entities
and energy companies entails risks, including fluctuations in
energy prices, decreases in the supply of or demand for energy
commodities, increased government regulation, natural disasters,
and various other risks.
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