First Trust Energy Income and Growth Fund (NYSE: FEN) (the “Fund”)
announced today that the Board of Trustees of the Fund has approved a
change to the Fund’s investment strategy as described in the table
below. The Fund is a non-diversified, closed-end management investment
company which commenced investment operations in June 2004. 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 publicly traded MLPs and
related public entities in the energy sector. The Fund’s investment
objective is not changing. The Fund’s investment strategy that is
changing is non-fundamental and is not required to be approved by
shareholders. The Fund anticipates implementing the change to the
investment strategy beginning on or around April 11, 2016.
Current Investment Strategy
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New Investment Strategy
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The Fund will not invest more than 10% of its Managed
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The Fund will not invest more than 15% of its Managed
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Assets in any single issuer.
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Assets in any single issuer.
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Managed Assets means the average daily gross asset value of the Fund
(which includes assets attributable to the Fund’s leverage), minus the
sum of the Fund’s accrued and unpaid dividends on any outstanding
preferred shares and accrued liabilities (other than debt representing
leverage). The Fund’s issuer concentration risk may increase as a result
of its new investment strategy. Issuer concentration risk is generally
the risk that the Fund’s portfolio could decline as a result of the
portfolio containing fewer issuers with higher weightings.
First Trust Advisors L.P., the Fund’s investment advisor, along with its
affiliate, First Trust Portfolios L.P., are privately-held companies
which provide a variety of investment services, including asset
management and financial advisory services, with collective assets under
management or supervision of approximately $104 billion as of December
31, 2015, through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts.
Energy Income Partners, LLC (“EIP”) serves as the Fund’s investment
sub-advisor and provides advisory services to a number of investment
companies and partnerships for the purpose of investing in MLPs and
other energy infrastructure securities. EIP is one of the early
investment advisors specializing in this area. As of December 31, 2015,
EIP managed or supervised approximately $4.2 billion in client assets.
The Fund’s daily closing New York Stock Exchange price and net asset
value per share as well as other information, including information
relating to the Fund’s investment objective and policies, risk
considerations and expenses, can be found at www.ftportfolios.com
or by calling 1-800-988-5891.
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