First Trust Enhanced Equity Income Fund (FFA)
  • 2018 Estimated Capital Gain Distributions
    Certain First Trust Closed-End Funds are expected to pay a long-term capital gain distribution in December. For a list of closed-end funds expected to pay a long-term capital gain distribution, please click here. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - First Trust Enhanced Equity Income Fund (the "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 commons 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. In addition, on an ongoing and consistent basis, the Fund writes (sells) covered call options on a portion of the Fund's Managed Assets. "Managed Assets" means the total asset value of the Fund minus the sum of the Fund's liabilities, including the value of call options written (sold).
There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Fund Overview
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Portfolio Manager/Sub-AdvisorChartwell Investment Partners
Investor Servicing AgentBNY Mellon Investment Servicing (US) Inc.
Fiscal Year-End12/31
Inception Price$20.00
Inception NAV$19.10
Current Fund Data (as of 12/17/2018)
Closing NAV1$14.47
Closing Share Price2$13.35
Discount to Net Asset Value (NAV)7.74%
Total Net Assets$289,038,763
Common Shares Outstanding19,973,164
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.2850
Distribution Rate48.54%
Daily Volume64,609
Average 30-Day Daily Volume40,664
Closing Share Price 52-Week High/Low$16.67 / $13.35
Closing NAV 52-Week High/Low$17.16 / $14.47
Expense Ratios (as of 6/30/2018)
Annual ExpensesPercent of
Net Assets
Management Fees1.00%
Other Expenses0.13%
Total Annual Expenses1.13%
Top 10 Holdings (as of 11/30/2018)7
Holding Percent
Microsoft Corp. 5.68%
Apple, Inc. 4.40%
JPMorgan Chase & Co. 3.39%
UnitedHealth Group, Inc. 2.88%
Thermo Fisher Scientific, Inc. 2.63%
Merck & Co., Inc. 2.62%
Pfizer, Inc. 2.40%
Chevron Corp. 2.22%
Carnival Corp. 2.05%
Intel Corp. 2.03%
Sector Breakdown (as of 11/30/2018)7
  Sector Percent
Information Technology 23.47%
Health Care 15.11%
Financials 14.24%
Industrials 9.78%
Consumer Discretionary 9.14%
Communication Services 8.91%
Energy 6.97%
Consumer Staples 6.11%
Utilities 2.84%
Real Estate 2.66%
Materials 0.77%
Share Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Cumulative Total Returns (as of 11/30/2018)5
Period Share Price NAV
3 Months -7.93% -5.09%
1 Year 1.88% 0.66%
3 Years 37.55% 26.04%
5 Years 60.00% 47.04%
10 Years 277.18% 208.09%
Year to Date -2.71% 0.08%
Inception to Date 136.68% 159.97%
Calendar Year Returns (as of 12/31/2017)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%
2014 14.83% 11.63%
2015 -1.35% 0.72%
2016 9.98% 9.18%
2017 28.82% 16.53%
Average Annual Returns (as of 11/30/2018)5
Period Share Price NAV
3 Years 11.21% 8.02%
5 Years 9.86% 8.02%
10 Years 14.20% 11.91%
Inception to Date 6.23% 6.93%
Leverage Information6
The Fund currently has no outstanding leverage.
Portfolio Information (as of 11/30/2018)7
% of Portfolio with Call Options52.25%
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 to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
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.

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