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First Trust Enhanced Equity Income Fund (FFA)
Investment Objective/Strategy - First Trust Enhanced Equity Income Fund is a diversified, closed-end management investment company. The Fund's investment objective is to provide a high level of current income and gains and, to a lesser extent, capital appreciation. The Fund pursues its investment objective by investing in a diversified portfolio of equity securities. Under normal market conditions, the Fund pursues an integrated investment strategy in which the Fund invests substantially all of its managed assets in a diversified portfolio of common stocks of U.S. corporations and U.S. dollar-denominated equity securities of non-U.S. issuers, in each case that are traded on U.S. securities exchanges, and on an ongoing and consistent basis writes (sells) covered call options on a portion of the Fund's managed assets.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerFFA
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorChartwell Investment Partners
Investor Servicing AgentBNY Mellon Investment Servicing (US) Inc.
CUSIP337318109
Fiscal Year-End12/31
ExchangeNYSE
Inception8/26/2004
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 10/30/2014)
Closing NAV1$15.85
Closing Share Price2$14.48
Discount to NAV8.64%
Total Net Assets$316,626,420
Common Shares Outstanding19,973,164
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.2300
Distribution Rate46.35%
Daily Volume32,699
Average 30-Day Daily Volume63,421
Closing Share Price 52-Week High/Low$14.93 / $12.67
Closing NAV 52-Week High/Low$16.41 / $14.29
Expense Ratios (as of 6/30/2014)
Annual ExpensesPercent of
Net Assets
Management Fees1.00%
Other Expenses0.18%
 
Total Annual Expenses1.18%
 
Top 10 Holdings (as of 8/31/2014)7
Holding Percent
Apple, Inc. 4.89%
JPMorgan Chase & Co. 3.78%
General Electric Co. 2.90%
Pfizer, Inc. 2.52%
Philip Morris International, Inc. 2.39%
Merck & Co., Inc. 2.14%
Oracle Corp. 2.06%
Occidental Petroleum Corp. 1.99%
Starwood Hotels & Resorts Worldwide, Inc. 1.96%
Cisco Systems, Inc. 1.94%
Sector Breakdown (as of 8/31/2014)7
  Sector Percent
Information Technology 21.19%
Financials 17.33%
Consumer Discretionary 13.33%
Energy 11.69%
Health Care 11.67%
Consumer Staples 9.56%
Industrials 7.81%
Materials 3.29%
Utilities 2.59%
Telecommunication Services 1.54%
Share Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Cumulative Total Returns (as of 9/30/2014)5
Period Share Price NAV
3 Months 0.42% 1.36%
1 Year 23.24% 18.99%
3 Years 73.18% 73.92%
5 Years 100.62% 94.01%
Year to Date 12.63% 9.32%
Inception to Date 70.71% 98.53%
Calendar Year Returns (as of 12/31/2013)5
Period Share Price NAV
2005 -6.85% 3.48%
2006 17.26% 7.09%
2007 -3.76% 8.19%
2008 -37.22% -30.54%
2009 46.26% 22.24%
2010 16.37% 15.50%
2011 -7.33% 2.42%
2012 17.68% 14.18%
2013 20.60% 23.11%
Average Annual Returns (as of 9/30/2014)5
Period Share Price NAV
3 Years 20.09% 20.26%
5 Years 14.94% 14.17%
Inception to Date 5.44% 7.03%
Leverage Information6
The Fund currently has no outstanding leverage.
Portfolio Information (as of 8/31/2014)7
% of Portfolio with Call Options53.82%
Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 Most recent distribution paid or declared through today's date. Subject to change in the future.
4 Distribution rates are calculated by annualizing the most recent distribution paid or declared through today's date and then dividing by the most recent market price. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
5 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 takes into account the fund's total annual expenses and does not reflect sales load. Past performance is not indicative of future results.
6 Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increase yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
7 Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-Q) that are based on trade date recording of security transactions. Holdings are subject to change.

Risk Considerations

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.

Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or economic events affecting the issuers or their industries occur.

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.

Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.

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 risks of investing in the fund are spelled out in the prospectus, shareholder report and other regulatory filings.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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