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First Trust Enhanced Equity Income Fund (FFA)
  • 2019 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
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 12/11/2019)
Closing NAV1$16.66
Closing Market Price2$16.55
Discount to Net Asset Value (NAV)0.66%
Total Net Assets$332,841,750
Common Shares Outstanding19,978,166
Dividend FrequencyQuarterly
Dividend Per Share Amt3$0.2850
Distribution Rate46.89%
Daily Volume21,849
Average 30-Day Daily Volume33,937
Closing Market Price 52-Week High/Low$16.63 / $12.10
Closing NAV 52-Week High/Low$16.66 / $13.05
Expense Ratios (as of 6/30/2019)
Annual ExpensesPercent of
Net Assets
Management Fees1.00%
Other Expenses0.15%
 
Total Annual Expenses1.15%
 
Top 10 Holdings (as of 10/31/2019)6
Holding Percent
Microsoft Corp. 6.42%
Apple, Inc. 4.81%
JPMorgan Chase & Co. 3.72%
SPDR S&P 500 ETF Trust 2.90%
Merck & Co., Inc. 2.80%
AT&T, Inc. 2.62%
Thermo Fisher Scientific, Inc. 2.58%
UnitedHealth Group, Inc. 2.32%
Intel Corp. 2.27%
Honeywell International, Inc. 1.91%
Portfolio Information (as of 10/31/2019)6
% of Portfolio with Call Options55.71%
Market Price and NAV History (Since Inception)
Past performance is not indicative of future results.
% Premium/Discount (Since Inception)
Leverage Information5
The Fund currently has no outstanding leverage.
Sector Breakdown (as of 10/31/2019)6
  Sector Percent
Information Technology 25.30%
Financials 13.40%
Health Care 13.21%
Communication Services 10.76%
Consumer Discretionary 10.20%
Industrials 7.92%
Energy 5.00%
Consumer Staples 4.91%
Other 2.90%
Utilities 2.87%
Real Estate 2.59%
Materials 0.94%
Performance (as of 11/30/2019)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception7
Fund Performance *
Net Asset Value (NAV) 6.16% 26.11% 14.43% 10.93% 7.89% 10.84% 7.40%
Market Price 6.22% 33.77% 18.44% 15.00% 9.48% 11.97% 6.99%

*Total return is the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in the NAV and Market Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. Past performance is not indicative of future results.

Footnotes
1 The fund's NAV is calculated by dividing the value of all the fund's assets, less all liabilities, by the total number of common shares outstanding.
2 Fund shares are purchased and sold on an exchange at their market 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 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.
6 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-PORT Part F) that are based on trade date recording of security transactions. Holdings are subject to change.
7 Inception Date is 8/26/2004

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
 
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 advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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