Notice regarding the December 2022 distribution of First Trust Energy Infrastructure Fund issues | Jobs Vox

WHEATON, Ill., December 15, 2022–(BUSINESS WIRE)–The Board of Trustees of First Trust Energy Infrastructure Fund (the “Fund”) (NYSE: FIF ), CUSIP 33738C103, has previously approved a managed distribution policy (the “Managed Distribution Plan”) for the Fund. Based on an exemption from the Securities and Exchange Commission that allows the Fund to make periodic monthly distributions of long-term capital gains during each tax year.

The fund declared a distribution on December 15, 2022 to shareholders effective December 2, 2022, with an ex-dividend date of December 1, 2022. This notice is to provide you with information about your funding sources. Distributors. You should not draw any conclusions about the investment performance of the Fund based on the distribution rate or distribution plan it manages.

The following tables set forth the estimated amount of current distributions and total distributions paid to the Fund for this fiscal year from the following sources: Net Investment Income (“NII”); Net Short Term Capital Gain (“STCG”); Net Long Term Capital Gain (“LTCG”); and return on capital (“ROC”). These estimates are based on data as of November 30, 2022, calculated in accordance with generally accepted accounting principles (“GAAP”) and include fiscal year-end undistributed net investment income. The amount and sources of distribution are expressed per common share.

(1) Includes the most recent monthly distribution paid on December 15, 2022.

(2) the fund distributes more than its income and realized capital gains; Therefore, a portion of your distribution may be a return of capital. A return of capital may be made, for example, when some or all of your investment in the fund is repaid. Dividend return does not necessarily reflect the investment performance of the fund and should not be confused with “yield” or “income.”

(3) Based on net asset value (“NAV”) as of November 30, 2022.

(4) Total returns are due November 30, 2022.

(5) Due to the tax treatment of cash distributions of master limited partnerships in which the Fund invests, the Fund expects that a portion of the Fund’s distribution to common shareholders may be a tax-deferred return of capital.

Distribution amounts and sources reported in this notice are estimates only and are not being used for tax reporting purposes. The actual amount and amount of funds for tax reporting purposes will depend on the Fund’s investment experience for the remainder of the fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that tells you how to report these distributions for federal income tax purposes. You should not use this notice in place of Form 1099-DIV.

First Trust Advisors LP (“FTA”) is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios LP (“FTP”), a FINRA-registered broker-dealer, are privately held companies that provide a variety of investment services. In the year As of November 30, 2022, FTA has a total of $199 billion in mutual assets under management or supervision in unit investments, exchange-traded funds, closed-end funds, mutual funds and managed accounts. FTA is the regulator of FirstTrust Unit Investment Trust and FTP is the sponsor. FTP is also a distributor of mutual fund shares and innovative units of exchange-traded funds. FTA and FTP are based in Wheaton, Illinois.

Energy Income Partners, LLC (“EIP”) serves as the Fund’s investment sub-adviser and provides advisory services to a number of investment companies and partnerships in investing in MLPs and other energy infrastructure securities. EIP was one of the earliest investment advisors to specialize in this area. As of November 30, 2022, EIP manages or controls approximately $5.5 billion in client assets.

Major risk factors are: Risks are inherent in all investments. Certain risks applicable to the Fund are identified below, including the risk that you may lose some or all of your holdings in the Fund. The main risks of investing in the Fund are outlined in the Fund’s annual shareholder reports. The order of risk factors below does not indicate the importance of any particular risk factor. The Fund provides reports, proxy statements and other information available for review.

Past performance is no guarantee of future results. Investment returns and the market value of investments in the Fund will fluctuate. Shares may be worth more or less than the original price when they are sold. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be suitable for all investors.

The Fund is subject to risks, including that it is a non-diversified closed-end management investment company.

The securities held by the Fund, as well as the Fund’s shares, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and changes in securities prices. Because of the risk of loss associated with these market fluctuations, a Fund’s shares may decline in value or other investments may be made. In addition, local, regional or global events such as war, acts of terrorism, outbreaks of infectious diseases or other public health issues, economic recessions or other events may have a material adverse effect on the Fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more than others. In the year Conflicts and sanctions arising out of those conflicts could have a significant impact on certain Fund investments as well as Fund performance. The global pandemic of Covid-19 and the policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the US has “reasonably” resumed normal business operations, many countries have continued to impose lockdown measures. Also, there is no guarantee that vaccines will be effective against the types of disease that occur.

Because the Fund is focused on securities issued by energy infrastructure companies, it will be more exposed to adverse economic or regulatory conditions in that industry, including higher interest costs, higher operating costs, the effects of an economic slowdown, excess capacity, increased competition, and uncertainty. Regarding fuel supply at affordable prices, energy conservation policies and other factors. Investments in the securities of MLPs involve certain risks that are different from, or in addition to, the risks involved in investing in common stocks. The number of energy-related MLPs has declined since 2014. The industry is seeing consolidation or simplification of corporate structures where MLP capital sleeves are disappearing. As noted above, the Fund’s MLP investments may vary substantially and the Fund may include investments outside of MLPs consistent with its investment objectives and policies. Changes in tax laws or regulations or their future interpretations could adversely affect the Fund or its MLPs, MLP-related entities and other energy sector and energy service companies in which the Fund invests.

The Fund invests in securities of non-US issuers that are more volatile than securities of US issuers. Because the Fund invests in non-US securities, you may lose money if the local currency of non-US markets depreciates against the US dollar.

There can be no assurance that the portion of distributions paid to the Fund’s common shareholders will constitute tax-adjusted qualified dividend income.

To the extent a Fund invests in floating or variable rate obligations that use the London Interbank Offered Rate (“LIBOR”) as a reference interest rate, it is exposed to LIBOR risk. The UK’s Financial Conduct Authority, which regulates LIBOR, has ceased to use LIBOR as a reference rate for a period ending on 31 December 2021. Any Alternative Reference Rate (“SOFR”), including the Secured Overnight Financing Rate, shall be of the same value or economic equivalent to LIBOR, or instruments using the Alternative Rate shall have the same amount or liquidity. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain of the Fund’s investments and may result in costs associated with closing out positions and entering into new transactions. Any effect that a departure from LIBOR may have on the Fund or certain instruments in which the Fund invests may be difficult to determine, and may vary for a number of reasons, and may result in losses to the Fund.

Exercising may result in additional risk and expense and may magnify the effect of any loss.

The risks of investing in the Fund are described in the shareholder reports and other regulatory filings.

The information provided is not intended to provide investment advice or counsel to any person. By providing this information, First Trust is not acting to provide any fiduciary advice under ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently evaluating investment risks and making independent decisions to determine whether investments are appropriate for their clients.

Forward-looking statements

Certain statements in this press release that are not historical facts are “forward-looking statements” under US federal securities laws. Actual future results or events may differ materially from those anticipated by forward-looking statements for a number of reasons. In general, the words “believe”, “expect”, “expect”, “estimate”, “predict”, “project”, “will” and similar expressions generally identify forward-looking statements that are not historical. Forward-looking statements are subject to certain risks and uncertainties that may cause results to differ materially from those anticipated in any forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements.

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Contacts

Inquiries: Don Swaad (630) 765-8661