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Share Name | Share Symbol | Market | Type |
---|---|---|---|
First Trust Enhanced Equity Income Fund | NYSE:FFA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 19.46 | 0 | 09:09:45 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21586
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: (630) 765-8000
Date of fiscal year end: December 31
Date of reporting period:
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
Performance | |||||
Average Annual Total Returns | |||||
6 Months Ended 6/30/23 | 1 Year Ended 6/30/23 | 5 Years Ended 6/30/23 | 10 Years Ended 6/30/23 | Inception (8/26/04) to 6/30/23 | |
Fund Performance(3) | |||||
NAV | 12.96% | 16.65% | 10.44% | 10.23% | 8.00% |
Market Value | 15.34% | 15.85% | 9.84% | 10.97% | 7.53% |
Index Performance | |||||
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% | 9.84% |
CBOE S&P 500 BuyWrite Monthly Index | 10.47% | 9.02% | 4.42% | 6.26% | 5.38% |
(1) | Most recent distribution paid through June 30, 2023. Subject to change in the future. |
(2) | Distribution rates are calculated by annualizing the most recent distribution paid through the report date and then dividing by Common Share Price or NAV, as applicable, as of June 30, 2023. Subject to change in the future. |
(3) | Total return is based on 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 NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
Average Annual Total Returns | |||||
6 Months Ended 6/30/23 | 1 Year Ended 6/30/23 | 5 Years Ended 6/30/23 | 10 Years Ended 6/30/23 | Inception (8/26/04) to 6/30/23 | |
Fund Performance(1) | |||||
NAV | 12.96% | 16.65% | 10.44% | 10.23% | 8.00% |
Market Value | 15.34% | 15.85% | 9.84% | 10.97% | 7.53% |
Index Performance | |||||
S&P 500® Index | 16.89% | 19.59% | 12.31% | 12.86% | 9.84% |
CBOE S&P 500 BuyWrite Monthly Index | 10.47% | 9.02% | 4.42% | 6.26% | 5.38% |
(1) | Total return is based on 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 NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. |
Shares | Description | Value | ||
COMMON STOCKS – 92.9% | ||||
Air Freight & Logistics – 1.4% | ||||
21,000 | FedEx Corp. (a) (b) | $5,205,900 | ||
Automobiles – 0.8% | ||||
75,000 | General Motors Co. (a) | 2,892,000 | ||
Banks – 5.5% | ||||
350,000 | Huntington Bancshares, Inc. (a) | 3,773,000 | ||
76,000 | JPMorgan Chase & Co. (a) (b) | 11,053,440 | ||
17,500 | PNC Financial Services Group (The), Inc. (a) | 2,204,125 | ||
100,000 | Truist Financial Corp. (a) | 3,035,000 | ||
20,065,565 | ||||
Beverages – 3.3% | ||||
125,000 | Coca-Cola (The) Co. (a) | 7,527,500 | ||
18,500 | Constellation Brands, Inc., Class A (a) | 4,553,405 | ||
12,080,905 | ||||
Biotechnology – 1.9% | ||||
51,000 | AbbVie, Inc. (a) | 6,871,230 | ||
Broadline Retail – 1.5% | ||||
40,500 | Amazon.com, Inc. (a) (c) | 5,279,580 | ||
Capital Markets – 1.2% | ||||
52,500 | Morgan Stanley (a) | 4,483,500 | ||
Chemicals – 2.4% | ||||
15,000 | Air Products and Chemicals, Inc. (a) | 4,492,950 | ||
16,500 | Sherwin-Williams (The) Co. (a) | 4,381,080 | ||
8,874,030 | ||||
Communications Equipment – 1.7% | ||||
117,500 | Cisco Systems, Inc. (a) | 6,079,450 | ||
Consumer Staples Distribution & Retail – 2.3% | ||||
9,800 | Costco Wholesale Corp. (a) | 5,276,124 | ||
22,500 | Target Corp. (a) | 2,967,750 | ||
8,243,874 | ||||
Diversified Telecommunication Services – 1.4% | ||||
112,500 | AT&T, Inc. (a) | 1,794,375 | ||
85,000 | Verizon Communications, Inc. | 3,161,150 | ||
4,955,525 | ||||
Electric Utilities – 2.3% | ||||
100,000 | Exelon Corp. (a) | 4,074,000 | ||
155,000 | PPL Corp. (a) | 4,101,300 | ||
8,175,300 | ||||
Entertainment – 2.3% | ||||
62,000 | Activision Blizzard, Inc. (a) (b) | 5,226,600 | ||
90,000 | Cinemark Holdings, Inc. (a) (c) | 1,485,000 | ||
200,000 | Lions Gate Entertainment Corp., Class B (c) | 1,670,000 | ||
8,381,600 | ||||
Financial Services – 0.6% | ||||
31,500 | PayPal Holdings, Inc. (a) (b) (c) | 2,101,995 |
Shares | Description | Value | ||
COMMON STOCKS (Continued) | ||||
Ground Transportation – 1.6% | ||||
70,000 | Canadian Pacific Kansas City, Ltd. | $5,653,900 | ||
Health Care Equipment & Supplies – 0.8% | ||||
53,626 | Boston Scientific Corp. (c) | 2,900,630 | ||
Health Care Providers & Services – 3.6% | ||||
27,000 | UnitedHealth Group, Inc. (a) | 12,977,280 | ||
Hotels, Restaurants & Leisure – 4.3% | ||||
85,000 | Carnival Corp. (a) (b) (c) | 1,600,550 | ||
10,000 | Domino’s Pizza, Inc. (b) | 3,369,900 | ||
90,000 | Las Vegas Sands Corp. (b) (c) | 5,220,000 | ||
52,000 | Restaurant Brands International, Inc. | 4,031,040 | ||
47,500 | Six Flags Entertainment Corp. (a) (b) (c) | 1,234,050 | ||
15,455,540 | ||||
Industrial Conglomerates – 1.7% | ||||
29,000 | Honeywell International, Inc. | 6,017,500 | ||
Insurance – 3.9% | ||||
35,000 | Arthur J. Gallagher & Co. (a) (b) | 7,684,950 | ||
34,500 | Chubb, Ltd. (a) | 6,643,320 | ||
14,328,270 | ||||
Interactive Media & Services – 3.3% | ||||
100,000 | Alphabet, Inc., Class C (a) (c) | 12,097,000 | ||
IT Services – 1.2% | ||||
31,500 | International Business Machines Corp. (a) | 4,215,015 | ||
Life Sciences Tools & Services – 3.7% | ||||
29,800 | Danaher Corp. (a) | 7,152,000 | ||
12,000 | Thermo Fisher Scientific, Inc. (a) | 6,261,000 | ||
13,413,000 | ||||
Machinery – 1.2% | ||||
18,000 | Caterpillar, Inc. | 4,428,900 | ||
Metals & Mining – 0.6% | ||||
54,000 | Freeport-McMoRan, Inc. (a) (b) | 2,160,000 | ||
Oil, Gas & Consumable Fuels – 4.1% | ||||
33,000 | Diamondback Energy, Inc. (a) | 4,334,880 | ||
50,000 | Exxon Mobil Corp. | 5,362,500 | ||
39,000 | Hess Corp. | 5,302,050 | ||
14,999,430 | ||||
Pharmaceuticals – 4.4% | ||||
5,000 | Eli Lilly & Co. (b) | 2,344,900 | ||
76,000 | Merck & Co., Inc. (a) | 8,769,640 | ||
28,000 | Zoetis, Inc. (a) | 4,821,880 | ||
15,936,420 | ||||
Semiconductors & Semiconductor Equipment – 2.7% | ||||
3,500 | Broadcom, Inc. (a) | 3,036,005 | ||
119,000 | Intel Corp. (a) (b) | 3,979,360 | ||
47,000 | Micron Technology, Inc. (a) (b) | 2,966,170 | ||
9,981,535 |
Shares | Description | Value | ||
COMMON STOCKS (Continued) | ||||
Software – 12.2% | ||||
7,000 | Adobe, Inc. (a) (b) (c) | $3,422,930 | ||
107,000 | Microsoft Corp. (a) | 36,437,780 | ||
10,000 | Synopsys, Inc. (a) (c) | 4,354,100 | ||
44,214,810 | ||||
Specialty Retail – 0.2% | ||||
32,500 | Foot Locker, Inc. (a) | 881,075 | ||
Technology Hardware, Storage & Peripherals – 11.0% | ||||
207,000 | Apple, Inc. (a) (b) | 40,151,790 | ||
Textiles, Apparel & Luxury Goods – 1.2% | ||||
41,000 | NIKE, Inc., Class B (a) (b) | 4,525,170 | ||
Tobacco – 1.7% | ||||
64,000 | Philip Morris International, Inc. (a) | 6,247,680 | ||
Wireless Telecommunication Services – 0.9% | ||||
23,500 | T-Mobile US, Inc. (a) (c) | 3,264,150 | ||
Total Common Stocks | 337,539,549 | |||
(Cost $242,577,538) | ||||
REAL ESTATE INVESTMENT TRUSTS – 2.5% | ||||
Specialized REITs – 2.5% | ||||
34,000 | Crown Castle, Inc. (a) | 3,873,960 | ||
107,000 | Gaming and Leisure Properties, Inc. | 5,185,220 | ||
Total Real Estate Investment Trusts | 9,059,180 | |||
(Cost $8,043,646) | ||||
EXCHANGE – TRADED FUNDS – 1.6% | ||||
Capital Markets – 1.6% | ||||
13,000 | SPDR® S&P 500® ETF Trust | 5,762,640 | ||
(Cost $5,691,946) | ||||
COMMON STOCKS – BUSINESS DEVELOPMENT COMPANIES – 1.1% | ||||
Capital Markets – 1.1% | ||||
215,000 | Ares Capital Corp. (a) | 4,039,850 | ||
(Cost $3,728,891) | ||||
Total Investments – 98.1% | 356,401,219 | |||
(Cost $260,042,021) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN – (0.3)% | ||||||||||
(200) | Activision Blizzard, Inc. | $(1,686,000) | $90.00 | 07/21/23 | (27,600) | |||||
(25) | Adobe, Inc. | (1,222,475) | 510.00 | 06/30/23 | (25) | |||||
(200) | Apple, Inc. | (3,879,400) | 200.00 | 08/18/23 | (69,000) | |||||
(35) | Arthur J. Gallagher & Co. | (768,495) | 220.00 | 08/18/23 | (21,000) | |||||
(100) | Carnival Corp. | (188,300) | 14.00 | 07/21/23 | (49,300) | |||||
(400) | Carnival Corp. | (753,200) | 18.00 | 07/21/23 | (54,400) | |||||
(250) | Carnival Corp. | (470,750) | 20.00 | 07/21/23 | (13,500) | |||||
(25) | Domino’s Pizza, Inc. | (842,475) | 360.00 | 08/18/23 | (14,125) | |||||
(25) | Eli Lilly & Co. | (1,172,450) | 480.00 | 07/21/23 | (13,250) | |||||
(35) | FedEx Corp. | (867,650) | 250.00 | 06/30/23 | (35) | |||||
(125) | Freeport-McMoRan, Inc. | (500,000) | 43.00 | 07/21/23 | (5,625) | |||||
(250) | Intel Corp. | (836,000) | 39.00 | 07/21/23 | (1,500) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN (Continued) | ||||||||||
(100) | JPMorgan Chase & Co. | $(1,454,400) | $150.00 | 08/18/23 | $(19,900) | |||||
(200) | Las Vegas Sands Corp. | (1,160,000) | 62.00 | 07/21/23 | (10,800) | |||||
(100) | Micron Technology, Inc. | (631,100) | 73.00 | 07/21/23 | (1,000) | |||||
(75) | NIKE, Inc., Class B | (827,775) | 118.00 | 06/30/23 | (75) | |||||
(150) | NIKE, Inc., Class B | (1,655,550) | 120.00 | 07/21/23 | (2,700) | |||||
(75) | PayPal Holdings, Inc. | (500,475) | 70.00 | 07/21/23 | (5,850) | |||||
(200) | S&P 500® Index (d) | (89,007,600) | 4,500.00 | 07/21/23 | (454,000) | |||||
(100) | S&P 500® Index (d) | (44,503,800) | 4,575.00 | 07/21/23 | (64,000) | |||||
(200) | S&P 500® Index (d) | (89,007,600) | 4,600.00 | 07/21/23 | (80,000) | |||||
(100) | Six Flags Entertainment Corp. | (259,800) | 30.00 | 07/21/23 | (1,000) | |||||
Total Call Options Written | (908,685) | |||||||||
(Premiums received $742,938) |
Net Other Assets and Liabilities – 2.2% |
7,956,373 | ||
Net Assets – 100.0% |
$363,448,907 |
(a) | All or a portion of these securities are segregated to cover index call options written. At June 30, 2023, the segregated value of these securities amounts to $230,035,130. |
(b) | All or a portion of this security’s position represents cover for outstanding options written. |
(c) | Non-income producing security. |
(d) | Call options on securities indices were written on a portion of the common stock positions that were not used to cover call options written on individual equity securities held in the Fund’s portfolio. |
ASSETS TABLE | ||||
Total Value at 6/30/2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Common Stocks* | $ 337,539,549 | $ 337,539,549 | $ — | $ — |
Real Estate Investment Trusts* | 9,059,180 | 9,059,180 | — | — |
Exchange - Traded Funds* | 5,762,640 | 5,762,640 | — | — |
Common Stocks - Business Development Companies* | 4,039,850 | 4,039,850 | — | — |
Total Investments | $ 356,401,219 | $ 356,401,219 | $— | $— |
LIABILITIES TABLE | ||||
Total Value at 6/30/2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Call Options Written | $ (908,685) | $ (908,685) | $ — | $ — |
* | See Portfolio of Investments for industry breakout. |
ASSETS: | |
Investments, at value | $ 356,401,219 |
Cash | 10,852,072 |
Receivables: | |
Investment securities sold | 4,402,434 |
Dividends | 447,132 |
Dividend reclaims | 4,190 |
Prepaid expenses | 13,185 |
Total Assets | 372,120,232 |
LIABILITIES: | |
Options written, at value | 908,685 |
Payables: | |
Investment securities purchased | 7,393,625 |
Investment advisory fees | 297,223 |
Audit and tax fees | 26,525 |
Administrative fees | 18,288 |
Shareholder reporting fees | 13,387 |
Custodian fees | 6,381 |
Legal fees | 3,964 |
Transfer agent fees | 1,442 |
Financial reporting fees | 732 |
Trustees’ fees and expenses | 453 |
Other liabilities | 620 |
Total Liabilities | 8,671,325 |
NET ASSETS | $363,448,907 |
NET ASSETS consist of: | |
Paid-in capital | $ 263,987,224 |
Par value | 199,881 |
Accumulated distributable earnings (loss) | 99,261,802 |
NET ASSETS | $363,448,907 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) | $18.18 |
Number of | |
Investments, at cost | $260,042,021 |
Premiums received on options written | $742,938 |
INVESTMENT INCOME: | ||
Dividends | $ 3,457,510 | |
Interest | 59,412 | |
Foreign withholding tax | (15,409) | |
Total investment income | 3,501,513 | |
EXPENSES: | ||
Investment advisory fees | 1,743,273 | |
Administrative fees | 81,376 | |
Shareholder reporting fees | 52,702 | |
Audit and tax fees | 26,987 | |
Legal fees | 22,683 | |
Custodian fees | 12,768 | |
Listing expense | 11,779 | |
Trustees’ fees and expenses | 9,831 | |
Transfer agent fees | 9,039 | |
Financial reporting fees | 4,587 | |
Other | 9,342 | |
Total expenses | 1,984,367 | |
NET INVESTMENT INCOME (LOSS) | 1,517,146 | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
Net realized gain (loss) on: | ||
Investments | 17,110,712 | |
Written options contracts | (627,724) | |
Foreign currency transactions | 165 | |
Net realized gain (loss) | 16,483,153 | |
Net change in unrealized appreciation (depreciation) on: | ||
Investments | 24,630,032 | |
Written options contracts | (107,296) | |
Foreign currency translation | (18) | |
Net change in unrealized appreciation (depreciation) | 24,522,718 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | 41,005,871 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ 42,523,017 |
Six Months Ended 6/30/2023 (Unaudited) | Year Ended 12/31/2022 | ||
OPERATIONS: | |||
Net investment income (loss) | $ 1,517,146 | $ 2,929,934 | |
Net realized gain (loss) | 16,483,153 | 18,412,142 | |
Net change in unrealized appreciation (depreciation) | 24,522,718 | (89,978,856) | |
Net increase (decrease) in net assets resulting from operations | 42,523,017 | (68,636,780) | |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations | (12,592,494) | (25,183,334) | |
CAPITAL TRANSACTIONS: | |||
Proceeds from Common Shares reinvested | — | 105,150 | |
Net increase (decrease) in net assets resulting from capital transactions | — | 105,150 | |
Total increase (decrease) in net assets | 29,930,523 | (93,714,964) | |
NET ASSETS: | |||
Beginning of period | 333,518,384 | 427,233,348 | |
End of period | $ 363,448,907 | $ 333,518,384 | |
CAPITAL TRANSACTIONS were as follows: | |||
Common Shares at beginning of period | 19,988,085 | 19,982,838 | |
Common Shares issued as reinvestment under the Dividend Reinvestment Plan | — | 5,247 | |
Common Shares at end of period | 19,988,085 | 19,988,085 |
Six Months Ended 6/30/2023 (Unaudited) | Year Ended December 31, | |||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||
Net asset value, beginning of period | $ 16.69 | $ 21.38 | $ 18.29 | $ 16.92 | $ 13.89 | $ 16.51 | ||||||
Income from investment operations: | ||||||||||||
Net investment income (loss) | 0.08 (a) | 0.15 | 0.07 | 0.12 | 0.17 | 0.19 | ||||||
Net realized and unrealized gain (loss) | 2.04 | (3.58) | 4.28 (b) | 2.39 | 4.00 | (1.67) | ||||||
Total from investment operations | 2.12 | (3.43) | 4.35 | 2.51 | 4.17 | (1.48) | ||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.63) | — | (0.18) | (0.08) | (0.14) | (0.19) | ||||||
Net realized gain | — | (1.26) | (1.08) | (1.06) | (1.00) | (0.95) | ||||||
Total distributions paid to Common Shareholders | (0.63) | (1.26) | (1.26) | (1.14) | (1.14) | (1.14) | ||||||
Net asset value, end of period | $ | $16.69 | $21.38 | $18.29 | $16.92 | $13.89 | ||||||
Market value, end of period | $ | $15.76 | $21.29 | $17.62 | $17.25 | $12.92 | ||||||
Total return based on net asset value (c) | 12.96% | (15.84)% | 24.38% (b) | 16.84% | 30.78% | (9.19)% | ||||||
Total return based on market value (c) | 15.34% | (20.19)% | 28.56% | 10.41% | 43.34% | (13.86)% | ||||||
Ratios to average net assets/supplemental data: | ||||||||||||
Net assets, end of period (in 000’s) | $ 363,449 | $ 333,518 | $ 427,233 | $ 365,432 | $ 338,198 | $ 277,443 | ||||||
Ratio of total expenses to average net assets | 1.14% (d) | 1.13% | 1.12% | 1.15% | 1.14% | 1.14% | ||||||
Ratio of net investment income (loss) to average net assets | 0.87% (d) | 0.81% | 0.39% | 0.77% | 1.08% | 1.13% | ||||||
Portfolio turnover rate | 18% | 21% | 14% | 20% | 37% | 45% |
(a) | Based on average shares outstanding. |
(b) | The Fund received a reimbursement from Chartwell in the amount of $52,217, which represents less than $0.01 per share. Since the Fund was reimbursed, there was no effect on the Fund’s total return. |
(c) | Total return is based on 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 net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(d) | Annualized. |
1) | the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price; |
2) | the type of security; |
3) | the size of the holding; |
4) | the initial cost of the security; |
5) | transactions in comparable securities; |
6) | price quotes from dealers and/or third-party pricing services; |
7) | relationships among various securities; |
8) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
9) | an analysis of the issuer’s financial statements; |
10) | the existence of merger proposals or tender offers that might affect the value of the security; and |
11) | other relevant factors. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Distributions paid from: | |
Ordinary income | $132,172 |
Capital gains | 25,051,162 |
Return of capital | — |
Undistributed ordinary income | $3,418,584 |
Undistributed capital gains | — |
Total undistributed earnings | 3,418,584 |
Accumulated capital and other losses | — |
Net unrealized appreciation (depreciation) | 65,912,695 |
Total accumulated earnings (losses) | 69,331,279 |
Other | — |
Paid-in capital | 264,187,105 |
Total net assets | $333,518,384 |
Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||
$259,299,083 | $115,058,868 | $(18,865,417) | $96,193,451 |
Asset Derivatives | Liability Derivatives | |||||||||
Derivative Instrument | Risk Exposure | Statement of Assets and Liabilities Location | Value | Statement of Assets and Liabilities Location | Value | |||||
Written Options | Equity Risk | — | $ — | Options written, at value | $ 908,685 |
Statement of Operations Location | |
Equity Risk Exposure | |
Net realized gain (loss) on written options contracts | $(627,724) |
Net change in unrealized appreciation (depreciation) on written options contracts | (107,296) |
(1) | If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date. |
(2) | If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments. |
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | There have been no changes, as of the date of filing, in any of the Portfolio Managers identified in response to paragraph (a)(1) of this item in the registrant’s most recent annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities For Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(c) | Notices to the registrant’s common shareholders in accordance with the order under Section 6(c) of the 1940 Act granting an exemption from Section 19(b) of the 1940 Act and Rule 19a-l under the 1940 Act, dated March 24, 2010. (1) |
(1) | The Fund received exemptive relief from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains as frequently as monthly each taxable year. The relief is conditioned, in part, on an undertaking by the Fund to make the disclosures to the holders of the Fund’s common shares, in addition to the information required by Section 19(a) of the 1940 Act and Rule 19a-1 thereunder. The Fund is likewise obligated to file with the SEC the information contained in any such notice to shareholders. In that regard, attached as an exhibit to this filing is a copy of such notice made during the period. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | First Trust Enhanced Equity Income Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | September 8, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | September 8, 2023 |
By (Signature and Title)* | /s/ Derek D. Maltbie | |
Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | September 8, 2023 |
* Print the name and title of each signing officer under his or her signature.
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, James M. Dykas, certify that:
1. | I have reviewed this report on Form N-CSR of First Trust Enhanced Equity Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | September 8, 2023 | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, Derek D. Maltbie, certify that:
1. | I have reviewed this report on Form N-CSR of First Trust Enhanced Equity Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | September 8, 2023 | /s/ Derek D. Maltbie | |||
Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Certification Pursuant to Rule 30a-2(b) under the
1940 Act and Section 906
of the Sarbanes-Oxley Act
I, James M. Dykas, Chairman of the Board, President and Chief Executive Officer of First Trust Enhanced Equity Income Fund (the “Registrant”), certify that:
1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | September 8, 2023 | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
I, Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer of First Trust Enhanced Equity Income Fund (the “Registrant”), certify that:
1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | September 8, 2023 | /s/ Derek D. Maltbie | |||
Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Notice Regarding Your Quarterly Distribution
First Trust Enhanced Equity Income Fund (FFA)
The closed-end fund listed above (the "Fund") has declared a distribution payable on March 31, 2023, to shareholders of record as of March 23, 2023, with an ex-dividend date of March 22, 2023. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income (“NII”); net realized short-term capital gains (“STCG”); net realized long-term capital gains (“LTCG”); and return of capital (“ROC”). These estimates are based upon information projected through March 31, 2023, are calculated based on a generally accepted accounting principles (“GAAP”) basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.
Annualized | 5 Year Avg. | |||||||||||||||||||||||||
Total | Current Distribution ($) | Current Distribution (%) | Current Dist. Rate | Annual Total | ||||||||||||||||||||||
Fund Ticker | Fund Cusip | Fiscal Year End | Current Distribution | NII | STCG | LTCG | ROC (2) | NII | STCG | LTCG | ROC (2) | as a % of NAV (3) | Return on NAV (4) | |||||||||||||
FFA | 337318109 | 12/31/2023 | $0.31500 | $0.21280 | — | — | $0.10220 | 67.56% | — | — | 32.44% | 7.26% | 8.54% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | Cumulative Distributions Fiscal YTD (%) | Fiscal YTD Distributions | Fiscal YTD Total | ||||||||||||||||||||||
Fund Ticker | Fund Cusip | Fiscal Year End | Fiscal YTD Distributions (1) | NII | STCG | LTCG | ROC (2) | NII | STCG | LTCG | ROC (2) | as a % of NAV (3) | Return on NAV (4) | |||||||||||||
FFA | 337318109 | 12/31/2023 | $0.31500 | $0.21280 | — | — | $0.10220 | 67.56% | — | — | 32.44% | 1.82% | 3.95% |
(1) | Includes the most recent quarterly distribution paid on March 31, 2023. |
(2) | The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with “yield” or “income.” |
(3) | Based on Net Asset Value ("NAV") as of February 28, 2023. |
(4) | Total Returns are through February 28, 2023. |
The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its 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 will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.
_____________________________________
First Trust Advisors L.P. Contact:
Don Swade (630) 765-8661
Notice Regarding Your Quarterly Distribution
First Trust Enhanced Equity Income Fund (FFA)
The closed-end fund listed above (the "Fund") has declared a distribution payable on June 30, 2023, to shareholders of record as of June 23, 2023, with an ex-dividend date of June 22, 2023. This Notice is meant to provide you information about the sources of your Fund’s distributions. You should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income (“NII”); net realized short-term capital gains (“STCG”); net realized long-term capital gains (“LTCG”); and return of capital (“ROC”). These estimates are based upon information projected through June 30, 2023, are calculated based on a generally accepted accounting principles (“GAAP”) basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.
Annualized | 5 Year Avg. | |||||||||||||||||||||||||
Total | Current Distribution ($) | Current Distribution (%) | Current Dist. Rate | Annual Total | ||||||||||||||||||||||
Fund Ticker | Fund Cusip | Fiscal Year End | Current Distribution | NII | STCG | LTCG | ROC (2) | NII | STCG | LTCG | ROC (2) | as a % of NAV (3) | Return on NAV (4) | |||||||||||||
FFA | 337318109 | 12/31/2023 | $0.31500 | $0.12197 | — | — | $0.19303 | 38.72% | — | — | 61.28% | 7.09% | 9.36% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | Cumulative Distributions Fiscal YTD (%) | Fiscal YTD Distributions | Fiscal YTD Total | ||||||||||||||||||||||
Fund Ticker | Fund Cusip | Fiscal Year End | Fiscal YTD Distributions (1) | NII | STCG | LTCG | ROC (2) | NII | STCG | LTCG | ROC (2) | as a % of NAV (3) | Return on NAV (4) | |||||||||||||
FFA | 337318109 | 12/31/2023 | $0.63000 | $0.24394 | — | — | $0.38606 | 38.72% | — | — | 61.28% | 3.55% | 8.42% |
(1) | Includes the most recent quarterly distribution paid on June 30, 2023. |
(2) | The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with “yield” or “income.” |
(3) | Based on Net Asset Value ("NAV") as of May 31, 2023. |
(4) | Total Returns are through May 31, 2023. |
The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its 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 will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.
_____________________________________
First Trust Advisors L.P. Contact:
Don Swade (630) 765-8661
N-2 |
6 Months Ended |
---|---|
Jun. 30, 2023
$ / shares
shares
| |
Cover [Abstract] | |
Entity Central Index Key | 0001291334 |
Amendment Flag | false |
Entity Inv Company Type | N-2 |
Document Type | N-CSRS |
Entity Registrant Name | First Trust Enhanced Equity Income Fund |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | 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. 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 will achieve its investment objective. The Fund may not be appropriate for all investors. |
Risk Factors [Table Text Block] | Principal Risks
The following discussion
summarizes certain (but not all) of the principal risks associated with investing in the Fund. The Fund is subject to the informational requirements of the Securities Exchange Act of 1934 and the 1940 Act and,
in accordance therewith, files reports, proxy statements and other information that is available for review. The order of the below risk factors does not indicate the significance of any particular risk factor.
Current Market Conditions
Risk. Current market conditions risk is the risk that a particular investment, or shares of the Fund in general, may fall in value due to current market conditions. As a means to fight
inflation, which remains at elevated levels, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to
reverse previously implemented quantitative easing. U.S. regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely
impact the Fund’s ability to achieve its investment strategies or make certain investments. Recent and potential future bank failures could result in disruption to the broader banking industry or markets
generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. The ongoing adversarial political climate in the United States, as
well as political and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, which could have a negative impact on the
Fund’s investments and operations. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets
and the broader economy. For example, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the
United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain Fund investments as well as Fund performance and liquidity. The economies
of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted by trade disputes and other matters. For example, the United States has imposed trade barriers and
restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate between the United States and China does not
improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the
value of the Fund’s assets may go down. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by governments and central banks have caused and may continue to cause
significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects. While vaccines have been developed, there is no guarantee that vaccines will be effective against
emerging future variants of the disease. As this global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others. Advancements in
technology may also adversely impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation of artificial
intelligence. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments and could result in disruptions in the trading markets.
Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the
Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated
with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but
may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party
service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct
cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because
the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the
future.
Depositary Receipts
Risk. Depositary receipts represent equity interests in a foreign company that trade on a local stock exchange. Depositary receipts may be less liquid than the underlying shares in their
primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders of depositary receipts may have limited voting rights, and
investment restrictions in certain countries may adversely impact the value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice versa.
Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of the depositary receipts.
Equity Securities
Risk. The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which the Fund invests. 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. An adverse event affecting an issuer, such as an unfavorable earnings report, may depress the value of a particular equity security held by the Fund. Also, the prices of equity securities
are sensitive to general movements in the stock market and a drop in the stock market may depress the prices of equity securities to which the Fund has exposure. Common stock prices may be particularly sensitive
to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the
equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.
Income Risk. Net investment income paid by the Fund to its common shareholders is derived from the premiums it receives from writing (selling) call options and from the dividends and interest it
receives from the equity securities and other investments held in the Fund’s portfolio and short-term gains thereon. Premiums from writing (selling) call options and dividends and interest payments made by
the securities in the Fund’s portfolio can vary widely over time. Dividends on equity securities are not fixed but are declared at the discretion of an issuer’s board of directors. 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. The Fund cannot assure as to what
percentage of the distributions paid on the common shares, if any, will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates for individuals than are ordinary income
and short-term capital gains.
Industry and Sector
Risk. The Fund may not invest 25% or more of its total assets in securities of issuers in any single industry. If the Fund is focused in an industry, it may present more risks than if it
were broadly diversified over numerous industries of the economy. Individual industries may be subject to unique risks which may include, among others, governmental regulation, inflation, technological
innovations that may render existing products and equipment obsolete, competition from new entrants, high research and development costs, and rising interest rates.
The Fund may invest 25%
or more of its total assets in securities of issuers in a single sector. Currently, the Fund makes significant investments in equity securities of companies in the information technology sector. Information technology
companies produce and provide hardware, software and information technology systems and services. Information technology companies are generally subject to the following risks: rapidly changing technologies and
existing product obsolescence; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving
industry standards; and frequent new product introductions and new market entrants. Information technology companies may be smaller and less experienced companies, with limited product lines, markets or
financial resources and fewer experienced management or marketing personnel. Information technology company stocks, particularly those involved with the internet, have experienced extreme price and volume fluctuations
that are often unrelated to their operating performance. In addition, information technology companies are particularly vulnerable to federal, state and local government regulation, and competition and consolidation,
both domestically and internationally, including competition from foreign competitors with lower production costs. Information technology companies also face competition for services of qualified personnel and
heavily rely on patents and intellectual property rights and the ability to enforce such rights to maintain a competitive advantage.
Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the
present value of the Fund’s assets and distributions may decline. This risk is more prevalent with respect to debt securities. Inflation creates uncertainty over the future real value (after inflation) of an
investment. Inflation rates may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and the Fund’s investments may not keep pace with
inflation, which may result in losses to Fund investors.
Investment Risk. An investment in the Fund’s Common Shares is subject to investment risk, including the possible loss of the entire principal invested. An investment in Common Shares represents
an indirect investment in the securities owned by the Fund. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. Common Shares at any
point in time may be worth less than the original investment, even after taking into account the reinvestment of Fund dividends and distributions. When the Advisor or Sub-Advisor determines that it is
temporarily unable to follow the Fund’s investment strategy or that it is impractical to do so (such as when a market disruption event has occurred and trading in the securities is extremely limited or absent),
the Fund may take temporary defensive positions.
Management Risk and
Reliance on Key Personnel. In managing the Fund’s investment portfolio, the Fund’s portfolio managers will apply investment techniques and risk analyses that may not produce the desired result.
Additionally, the implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and
experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
Market Discount from Net
Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at,
below or above net asset value.
Market Risk. Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or perceived adverse economic conditions, political events,
regulatory factors or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of
loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, market manipulation, government defaults, government shutdowns, regulatory actions,
political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, or other events could have a significant
negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact on the value of the Fund’s shares, the liquidity of an investment, and may result in increased
market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s shares may widen and the returns on the
investment may fluctuate.
Non-U.S. Securities
Risk. Investing in securities of non-U.S. issuers may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less
publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile
than the U.S. market; (iii) the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (iv) the impact of economic, political, social or diplomatic events as
well as of foreign governmental laws or restrictions and differing legal standards; (v) certain non-U.S. countries may impose restrictions on the ability of non-U.S. issuers to make payments of principal and interest
to investors located in the United States due to blockage of non-U.S. currency exchanges or otherwise; and (vi) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are
generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad, including in the
event the issuer of a non-U.S. security defaults or enters bankruptcy, administration or other proceedings. These risks may be more pronounced to the extent that the Fund invests a significant amount of its assets in
companies located in one region.
Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service
providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including custody. Any delay or
failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through
controls and procedures, there is no way to completely protect against such risks.
Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The Fund may write (sell) covered call
options on all or a portion of the equity securities held in the Fund’s portfolio as determined to be appropriate by the Fund’s Sub-Advisor, consistent with the Fund’s investment objective. The
prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, or in interest or currency exchange rates, including anticipated
volatility, which in turn are affected by fiscal and monetary
policies and by national and
international political and economic events. In addition, there may at times be an imperfect correlation between the movement in values of options and their underlying securities and there may at times not be a
liquid secondary market for certain options. The ability to successfully implement the Fund’s investment strategy depends on the Sub-Advisor’s ability to predict pertinent market movements, which cannot be
assured. Thus, 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 can be no assurance that a liquid market for the options will exist when the Fund seeks to close out an option position.
Additionally, to the extent that the Fund purchases options pursuant to a hedging strategy, the Fund will be subject to additional risks.
Potential Conflicts of
Interest Risk. First Trust, Chartwell and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and Chartwell currently manage and may
in the future manage and/or advise other investment funds or accounts with the same or substantially similar investment objectives and strategies as the Fund.
REIT Risk. Real estate investment trusts (“REITs”) typically own and operate income-producing real estate, such as residential or commercial buildings, or real-estate related assets,
including mortgages. As a result, investments in REITs are subject to the risks associated with investing in real estate, which may include, but are not limited to: fluctuations in the value of underlying properties;
defaults by borrowers or tenants; market saturation; changes in general and local operating expenses; and other economic, political or regulatory occurrences affecting companies in the real estate sector.
Additionally, REITs may have limited diversification due to investment in a limited number of properties or a particular market segment and are subject to the risks associated with obtaining financing for real
property. REITs are also subject to the risk that the real estate market may experience an economic downturn generally, which may have a material effect on the real estate in which the REITs invest and their
underlying portfolio securities. REITs may also have a relatively small market capitalization which may result in their shares experiencing less market liquidity and greater price volatility than larger companies.
Increases in interest rates typically lower the present value of a REIT’s future earnings stream, and may make financing property purchases and improvements more costly. Because the market price of REIT stocks
may change based upon investors’ collective perceptions of future earnings, the value of the Fund will generally decline when investors anticipate or experience rising interest rates. Additionally, certain REITs
charge management fees, which may result in layering of management fees paid by the Fund.
Small- and/or
Mid-Capitalization Companies Risk. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price
volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available
information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.
|
Share Price | $ 17.53 |
NAV Per Share | $ 18.18 |
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |
Outstanding Security, Title [Text Block] | Common Shares outstanding (unlimited number of Common Shares has been authorized) |
Outstanding Security, Held [Shares] | shares | 19,988,085 |
Document Period End Date | Jun. 30, 2023 |
Current Market Conditions Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Current Market Conditions
Risk. Current market conditions risk is the risk that a particular investment, or shares of the Fund in general, may fall in value due to current market conditions. As a means to fight
inflation, which remains at elevated levels, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal Reserve has announced that it intends to
reverse previously implemented quantitative easing. U.S. regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely
impact the Fund’s ability to achieve its investment strategies or make certain investments. Recent and potential future bank failures could result in disruption to the broader banking industry or markets
generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. The ongoing adversarial political climate in the United States, as
well as political and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, which could have a negative impact on the
Fund’s investments and operations. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets
and the broader economy. For example, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the
United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain Fund investments as well as Fund performance and liquidity. The economies
of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted by trade disputes and other matters. For example, the United States has imposed trade barriers and
restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate between the United States and China does not
improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the
value of the Fund’s assets may go down. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by governments and central banks have caused and may continue to cause
significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects. While vaccines have been developed, there is no guarantee that vaccines will be effective against
emerging future variants of the disease. As this global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others. Advancements in
technology may also adversely impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation of artificial
intelligence. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments and could result in disruptions in the trading markets.
|
Cyber Security Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the
Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated
with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but
may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party
service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct
cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because
the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the
future.
|
Depositary Receipts Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Depositary Receipts
Risk. Depositary receipts represent equity interests in a foreign company that trade on a local stock exchange. Depositary receipts may be less liquid than the underlying shares in their
primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary. Holders of depositary receipts may have limited voting rights, and
investment restrictions in certain countries may adversely impact the value of depositary receipts because such restrictions may limit the ability to convert the equity shares into depositary receipts and vice versa.
Such restrictions may cause the equity shares of the underlying issuer to trade at a discount or premium to the market price of the depositary receipts.
|
Equity Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Equity Securities
Risk. The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which the Fund invests. 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. An adverse event affecting an issuer, such as an unfavorable earnings report, may depress the value of a particular equity security held by the Fund. Also, the prices of equity securities
are sensitive to general movements in the stock market and a drop in the stock market may depress the prices of equity securities to which the Fund has exposure. Common stock prices may be particularly sensitive
to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the
equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.
|
Income Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Income Risk. Net investment income paid by the Fund to its common shareholders is derived from the premiums it receives from writing (selling) call options and from the dividends and interest it
receives from the equity securities and other investments held in the Fund’s portfolio and short-term gains thereon. Premiums from writing (selling) call options and dividends and interest payments made by
the securities in the Fund’s portfolio can vary widely over time. Dividends on equity securities are not fixed but are declared at the discretion of an issuer’s board of directors. 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. The Fund cannot assure as to what
percentage of the distributions paid on the common shares, if any, will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates for individuals than are ordinary income
and short-term capital gains.
|
Industry And Sector Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Industry and Sector
Risk. The Fund may not invest 25% or more of its total assets in securities of issuers in any single industry. If the Fund is focused in an industry, it may present more risks than if it
were broadly diversified over numerous industries of the economy. Individual industries may be subject to unique risks which may include, among others, governmental regulation, inflation, technological
innovations that may render existing products and equipment obsolete, competition from new entrants, high research and development costs, and rising interest rates.
The Fund may invest 25%
or more of its total assets in securities of issuers in a single sector. Currently, the Fund makes significant investments in equity securities of companies in the information technology sector. Information technology
companies produce and provide hardware, software and information technology systems and services. Information technology companies are generally subject to the following risks: rapidly changing technologies and
existing product obsolescence; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving
industry standards; and frequent new product introductions and new market entrants. Information technology companies may be smaller and less experienced companies, with limited product lines, markets or
financial resources and fewer experienced management or marketing personnel. Information technology company stocks, particularly those involved with the internet, have experienced extreme price and volume fluctuations
that are often unrelated to their operating performance. In addition, information technology companies are particularly vulnerable to federal, state and local government regulation, and competition and consolidation,
both domestically and internationally, including competition from foreign competitors with lower production costs. Information technology companies also face competition for services of qualified personnel and
heavily rely on patents and intellectual property rights and the ability to enforce such rights to maintain a competitive advantage.
|
Inflation Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the
present value of the Fund’s assets and distributions may decline. This risk is more prevalent with respect to debt securities. Inflation creates uncertainty over the future real value (after inflation) of an
investment. Inflation rates may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and the Fund’s investments may not keep pace with
inflation, which may result in losses to Fund investors.
|
Investment Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Investment Risk. An investment in the Fund’s Common Shares is subject to investment risk, including the possible loss of the entire principal invested. An investment in Common Shares represents
an indirect investment in the securities owned by the Fund. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. Common Shares at any
point in time may be worth less than the original investment, even after taking into account the reinvestment of Fund dividends and distributions. When the Advisor or Sub-Advisor determines that it is
temporarily unable to follow the Fund’s investment strategy or that it is impractical to do so (such as when a market disruption event has occurred and trading in the securities is extremely limited or absent),
the Fund may take temporary defensive positions.
|
Management Risk And Reliance On Key Personnel [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Management Risk and
Reliance on Key Personnel. In managing the Fund’s investment portfolio, the Fund’s portfolio managers will apply investment techniques and risk analyses that may not produce the desired result.
Additionally, the implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and
experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
|
Market Discount From Net Asset Value [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Discount from Net
Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at,
below or above net asset value.
|
Market Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Risk. Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or perceived adverse economic conditions, political events,
regulatory factors or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of
loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, market manipulation, government defaults, government shutdowns, regulatory actions,
political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, or other events could have a significant
negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact on the value of the Fund’s shares, the liquidity of an investment, and may result in increased
market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s shares may widen and the returns on the
investment may fluctuate.
|
Non U S Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Non-U.S. Securities
Risk. Investing in securities of non-U.S. issuers may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less
publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile
than the U.S. market; (iii) the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (iv) the impact of economic, political, social or diplomatic events as
well as of foreign governmental laws or restrictions and differing legal standards; (v) certain non-U.S. countries may impose restrictions on the ability of non-U.S. issuers to make payments of principal and interest
to investors located in the United States due to blockage of non-U.S. currency exchanges or otherwise; and (vi) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are
generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad, including in the
event the issuer of a non-U.S. security defaults or enters bankruptcy, administration or other proceedings. These risks may be more pronounced to the extent that the Fund invests a significant amount of its assets in
companies located in one region.
|
Operational Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service
providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including custody. Any delay or
failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through
controls and procedures, there is no way to completely protect against such risks.
|
Options Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The Fund may write (sell) covered call
options on all or a portion of the equity securities held in the Fund’s portfolio as determined to be appropriate by the Fund’s Sub-Advisor, consistent with the Fund’s investment objective. The
prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, or in interest or currency exchange rates, including anticipated
volatility, which in turn are affected by fiscal and monetary
policies and by national and
international political and economic events. In addition, there may at times be an imperfect correlation between the movement in values of options and their underlying securities and there may at times not be a
liquid secondary market for certain options. The ability to successfully implement the Fund’s investment strategy depends on the Sub-Advisor’s ability to predict pertinent market movements, which cannot be
assured. Thus, 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 can be no assurance that a liquid market for the options will exist when the Fund seeks to close out an option position.
Additionally, to the extent that the Fund purchases options pursuant to a hedging strategy, the Fund will be subject to additional risks.
|
Potential Conflicts Of Interest Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Potential Conflicts of
Interest Risk. First Trust, Chartwell and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and Chartwell currently manage and may
in the future manage and/or advise other investment funds or accounts with the same or substantially similar investment objectives and strategies as the Fund.
|
R E I T Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | REIT Risk. Real estate investment trusts (“REITs”) typically own and operate income-producing real estate, such as residential or commercial buildings, or real-estate related assets,
including mortgages. As a result, investments in REITs are subject to the risks associated with investing in real estate, which may include, but are not limited to: fluctuations in the value of underlying properties;
defaults by borrowers or tenants; market saturation; changes in general and local operating expenses; and other economic, political or regulatory occurrences affecting companies in the real estate sector.
Additionally, REITs may have limited diversification due to investment in a limited number of properties or a particular market segment and are subject to the risks associated with obtaining financing for real
property. REITs are also subject to the risk that the real estate market may experience an economic downturn generally, which may have a material effect on the real estate in which the REITs invest and their
underlying portfolio securities. REITs may also have a relatively small market capitalization which may result in their shares experiencing less market liquidity and greater price volatility than larger companies.
Increases in interest rates typically lower the present value of a REIT’s future earnings stream, and may make financing property purchases and improvements more costly. Because the market price of REIT stocks
may change based upon investors’ collective perceptions of future earnings, the value of the Fund will generally decline when investors anticipate or experience rising interest rates. Additionally, certain REITs
charge management fees, which may result in layering of management fees paid by the Fund.
|
Small And Or Mid Capitalization Companies Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Small- and/or
Mid-Capitalization Companies Risk. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price
volatility than larger, more established companies as a result of several factors, including limited trading volumes, fewer products or financial resources, management inexperience and less publicly available
information. Accordingly, such companies are generally subject to greater market risk than larger, more established companies.
|
1 Year First Trust Enhanced Equ... Chart |
1 Month First Trust Enhanced Equ... Chart |
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