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Share Name | Share Symbol | Market | Type |
---|---|---|---|
First Trust Energy Infrastructure Fund | NYSE:FIF | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 18.10 | 0 | 01:00:00 |
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 811-22528
(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: November 30
Date of reporting period: May 31, 2023
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 5/31/23 |
1
Year Ended 5/31/23 |
5
Years Ended 5/31/23 |
10
Years Ended 5/31/23 |
Inception (9/27/11) to 5/31/23 | |
Fund Performance(3) | |||||
NAV | -6.68% | -4.60% | 6.60% | 4.86% | 7.41% |
Market Value | -5.77% | -5.04% | 3.75% | 3.62% | 5.60% |
Index Performance | |||||
PHLX Utility Sector Index | -8.10% | -10.44% | 8.63% | 9.23% | 9.21% |
Alerian MLP Total Return Index | 0.39% | 7.84% | 4.97% | 0.80% | 3.70% |
Blended Index(4) | -3.69% | -1.03% | 8.79% | 6.24% | 7.60% |
(1) | Most recent distribution paid through May 31, 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 May 31, 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. |
(4) | The Blended Index consists of the following: PHLX Utility Sector Index (50%) and Alerian MLP Total Return Index (50%). The Blended Index reflects the diverse allocation of companies engaged in the energy infrastructure sector in the Fund’s portfolio. The indices do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. The Blended Index returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
(5) | Includes swap contracts. |
Average Annual Total Returns | |||||
6
Months Ended 5/31/23 |
1
Year Ended 5/31/23 |
5
Years Ended 5/31/23 |
10
Years Ended 5/31/23 |
Inception (9/27/11) to 5/31/23 | |
Fund Performance(1) | |||||
NAV | -6.68% | -4.60% | 6.60% | 4.86% | 7.41% |
Market Value | -5.77% | -5.04% | 3.75% | 3.62% | 5.60% |
Index Performance | |||||
PHLX Utility Sector Index | -8.10% | -10.44% | 8.63% | 9.23% | 9.21% |
Alerian MLP Total Return Index | 0.39% | 7.84% | 4.97% | 0.80% | 3.70% |
Blended Index(2) | -3.69% | -1.03% | 8.79% | 6.24% | 7.60% |
(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. Past performance is not indicative of future results. |
(2) | The Blended Index consists of the following: PHLX Utility Sector Index (50%) and Alerian MLP Total Return Index (50%). The Blended Index reflects the diverse allocation of companies engaged in the energy infrastructure sector in the Fund’s portfolio. The indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index. The Blended Index returns are calculated by using the monthly return of the two indices during each period shown above. At the beginning of each month the two indices are rebalanced to a 50-50 ratio to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
(3) | Source: FactSet, Bloomberg. |
(4) | Source: BP Statistical Review of World Energy – June 2022. |
(5) | Source: World Bank, EIP Estimates. |
(6) | There is no guarantee that any investment strategy will successfully protect against inflation or will even be profitable. |
Shares | Description | Value | ||
COMMON STOCKS (a) – 69.6% | ||||
Construction & Engineering – 0.1% | ||||
1,890 |
Quanta Services, Inc. |
$335,626 | ||
Electric Utilities – 12.3% | ||||
104,690 |
Alliant Energy Corp. (b) |
5,387,347 | ||
87,400 |
American Electric Power Co., Inc. |
7,264,688 | ||
8,110 |
Duke Energy Corp. |
724,142 | ||
18,930 |
Emera, Inc. (CAD) |
780,488 | ||
79,420 |
Enel S.p.A., ADR |
494,787 | ||
8,000 |
Entergy Corp. |
785,600 | ||
26,240 |
Evergy, Inc. |
1,517,984 | ||
25,130 |
Eversource Energy |
1,739,750 | ||
62,300 |
Exelon Corp. |
2,470,195 | ||
18,450 |
Fortis, Inc. (CAD) |
776,055 | ||
7,230 |
IDACORP, Inc. |
752,426 | ||
40,913 |
NextEra Energy, Inc. |
3,005,469 | ||
11,600 |
Orsted A/S, ADR |
339,532 | ||
112,890 |
PPL Corp. |
2,957,718 | ||
35,650 |
Xcel Energy, Inc. |
2,327,588 | ||
31,323,769 | ||||
Energy Equipment & Services – 0.3% | ||||
80,600 |
Archrock, Inc. |
725,400 | ||
Gas Utilities – 5.2% | ||||
18,700 |
AltaGas Ltd. (CAD) |
317,108 | ||
27,900 |
Atmos Energy Corp. |
3,216,312 | ||
136,200 |
National Fuel Gas Co. |
6,933,942 | ||
14,800 |
New Jersey Resources Corp. |
717,060 | ||
19,720 |
ONE Gas, Inc. |
1,596,137 | ||
13,894 |
UGI Corp. |
388,615 | ||
13,169,174 | ||||
Independent Power & Renewable Electricity Producers – 2.1% | ||||
167,170 |
AES (The) Corp. (b) |
3,299,936 | ||
51,970 |
Clearway Energy, Inc., Class A |
1,428,136 | ||
14,170 |
EDP Renovaveis S.A. (EUR) |
281,418 | ||
18,940 |
Northland Power, Inc. (CAD) |
415,494 | ||
5,424,984 | ||||
Multi-Utilities – 12.3% | ||||
147,910 |
Atco Ltd., Class I (CAD) |
4,546,802 | ||
17,020 |
Canadian Utilities Ltd., Class A (CAD) |
457,001 | ||
10,619 |
CenterPoint Energy, Inc. |
299,562 | ||
25,600 |
CMS Energy Corp. |
1,484,288 | ||
28,810 |
DTE Energy Co. |
3,099,956 | ||
89,000 |
Public Service Enterprise Group, Inc. |
5,317,750 | ||
95,320 |
Sempra Energy |
13,681,280 | ||
26,320 |
WEC Energy Group, Inc. |
2,299,052 | ||
31,185,691 | ||||
Oil, Gas & Consumable Fuels – 37.0% | ||||
165,090 |
BP PLC, ADR |
5,565,184 | ||
45,178 |
Cheniere Energy, Inc. |
6,314,529 | ||
318,590 |
DT Midstream, Inc. |
14,483,101 | ||
123,800 |
Enbridge, Inc. |
4,357,760 | ||
361,830 |
Keyera Corp. (CAD) |
8,076,206 | ||
904,565 |
Kinder Morgan, Inc. (b) |
14,572,542 |
Shares | Description | Value | ||
COMMON STOCKS (a) (Continued) | ||||
Oil, Gas & Consumable Fuels (Continued) | ||||
176,123 |
ONEOK, Inc. (b) |
$9,979,129 | ||
109,230 |
Shell PLC, ADR (b) |
6,116,880 | ||
103,070 |
Targa Resources Corp. (b) |
7,013,914 | ||
20,455 |
TC Energy Corp. |
796,518 | ||
106,730 |
TotalEnergies SE, ADR |
6,008,899 | ||
374,750 |
Williams (The) Cos., Inc. (b) |
10,740,335 | ||
94,024,997 | ||||
Semiconductors & Semiconductor Equipment – 0.2% | ||||
2,040 |
Enphase Energy, Inc. (c) |
354,715 | ||
Water Utilities – 0.1% | ||||
2,170 |
American Water Works Co., Inc. |
313,457 | ||
Total Common Stocks |
176,857,813 | |||
(Cost $185,816,554) | ||||
Units | Description | Value | ||
MASTER LIMITED PARTNERSHIPS (a) – 47.4% | ||||
Chemicals – 0.6% | ||||
69,395 |
Westlake Chemical Partners, L.P. |
1,491,298 | ||
Energy Equipment & Services – 0.1% | ||||
14,800 |
USA Compression Partners, L.P. |
276,464 | ||
Independent Power & Renewable Electricity Producers – 3.2% | ||||
135,418 |
NextEra Energy Partners, L.P. (d) |
8,114,247 | ||
Oil, Gas & Consumable Fuels – 43.5% | ||||
99,089 |
Cheniere Energy Partners, L.P. |
4,404,506 | ||
1,572,880 |
Energy Transfer, L.P. |
19,503,712 | ||
29,780 |
EnLink Midstream, LLC (d) |
290,653 | ||
824,240 |
Enterprise Products Partners, L.P. |
20,877,999 | ||
432,710 |
Hess Midstream, L.P., Class A (d) |
12,068,282 | ||
176,346 |
Holly Energy Partners, L.P. |
3,027,861 | ||
359,772 |
Magellan Midstream Partners, L.P. |
21,661,872 | ||
240,770 |
MPLX, L.P. |
8,027,272 | ||
1,455,078 |
Plains GP Holdings, L.P., Class A (d) |
19,789,061 | ||
29,940 |
Western Midstream Partners, L.P. |
755,685 | ||
110,406,903 | ||||
Total Master Limited Partnerships |
120,288,912 | |||
(Cost $98,108,517) | ||||
Shares | Description | Value | ||
MONEY MARKET FUNDS (a) – 9.2% | ||||
23,397,919 |
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 4.96% (e) |
23,397,919 | ||
(Cost $23,397,919) | ||||
Total Investments – 126.2% |
320,544,644 | |||
(Cost $307,322,990) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN – (0.1)% | ||||||||||
(1,671) |
AES (The) Corp. (f) |
$(3,298,554) | $26.00 | 06/16/23 | (16,710) | |||||
(1,046) |
Alliant Energy Corp. (f) |
(5,382,716) | 57.50 | 06/16/23 | (13,598) | |||||
(1,500) |
Kinder Morgan, Inc. |
(2,416,500) | 17.00 | 07/21/23 | (28,500) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN (Continued) | ||||||||||
(1,761) |
ONEOK, Inc. |
$(9,977,826) | $62.50 | 07/21/23 | $(61,635) | |||||
(1,092) |
Shell PLC, ADR |
(6,115,200) | 63.00 | 06/16/23 | (5,460) | |||||
(1,030) |
Targa Resources Corp. (f) |
(7,009,150) | 80.00 | 06/16/23 | (6,180) | |||||
(1,247) |
Williams (The) Cos., Inc. |
(3,573,902) | 30.00 | 06/16/23 | (9,976) | |||||
Total Call Options Written |
(142,059) | |||||||||
(Premiums received $608,127) |
Outstanding Loans – (27.7)% |
(70,300,000) | ||
Net Other Assets and Liabilities – 1.6% |
3,800,712 | ||
Net Assets – 100.0% |
$253,903,297 |
Counterparty | Rate Receivable | Expiration Date | Notional Amount |
Rate Payable | Unrealized Appreciation (Depreciation)/ Value | |||||
Bank of Nova Scotia(1) | (2) | 09/03/24 | $36,475,000 | 2.367%(3) | $1,202,670 | |||||
N/A(4) (5) | 5.080%(6) | 10/21/25 | 303,796 | 5.090%(7) | (168) | |||||
$36,778,796 | $1,202,502 | |||||||||
(1) Payment frequency is monthly | ||||||||||
(2) 1 month LIBOR until 08/03/23 and then the rate is SOFR + 0.11448%. At 05/31/23, the rate accrued is 5.193%. | ||||||||||
(3) Fixed Rate | ||||||||||
(4) Centrally cleared on the Chicago Mercantile Exchange | ||||||||||
(5) No cash payments are made by either party prior to the expiration dates shown above | ||||||||||
(6) Federal Funds Rate | ||||||||||
(7) SOFR + 0.01036% |
(a) | All of these securities are available to serve as collateral for the outstanding loans. |
(b) | All or a portion of this security’s position represents cover for outstanding options written. |
(c) | Non-income producing security. |
(d) | This security is taxed as a “C” corporation for federal income tax purposes. |
(e) | Rate shown reflects yield as of May 31, 2023. |
(f) | This investment is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Fund’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At May 31, 2023, investments noted as such are valued at $(36,488) or (0.0)% of net assets. |
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
EUR | Euro |
LIBOR | London Interbank Offered Rate |
SOFR | Secured Overnight Financing Rate |
ASSETS TABLE | ||||
Total Value at 5/31/2023 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | |
Common Stocks* |
$ 176,857,813 | $ 176,857,813 | $ — | $ — |
Master Limited Partnerships* |
120,288,912 | 120,288,912 | — | — |
Money Market Funds |
23,397,919 | 23,397,919 | — | — |
Total Investments |
320,544,644 | 320,544,644 | — | — |
Interest Rate Swap Agreements |
1,202,670 | — | 1,202,670 | — |
Total |
$ 321,747,314 | $ 320,544,644 | $ 1,202,670 | $— |
LIABILITIES TABLE | ||||
Total Value at 5/31/2023 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | |
Call Options Written |
$ (142,059) | $ (105,571) | $ (36,488) | $ — |
Interest Rate Swap Agreements |
(168) | — | (168) | — |
Total |
$ (142,227) | $ (105,571) | $ (36,656) | $— |
* | See Portfolio of Investments for industry breakout. |
ASSETS: | |
Investments, at value (Cost $307,322,990) |
$ 320,544,644 |
Cash segregated as collateral for open swap contracts |
1,458,874 |
Swap contracts, at value |
1,202,670 |
Receivables: | |
Investment securities sold |
2,428,329 |
Dividends |
484,933 |
Interest |
81,015 |
Dividend reclaims |
9,449 |
Prepaid expenses |
17,217 |
Total Assets |
326,227,131 |
LIABILITIES: | |
Outstanding loans |
70,300,000 |
Options written, at value (Premiums received $608,127) |
142,059 |
Due to custodian |
21,525 |
Swap contracts, at value |
168 |
Due to custodian foreign currency (Proceeds $2) |
2 |
Payables: | |
Investment securities purchased |
1,244,848 |
Investment advisory fees |
281,503 |
Interest and fees on loans |
253,538 |
Audit and tax fees |
29,925 |
Administrative fees |
15,757 |
Shareholder reporting fees |
12,817 |
Trustees’ fees and expenses |
7,666 |
Custodian fees |
7,216 |
Legal fees |
2,248 |
Transfer agent fees |
1,505 |
Financial reporting fees |
758 |
Other liabilities |
2,299 |
Total Liabilities |
72,323,834 |
NET ASSETS |
$253,903,297 |
NET ASSETS consist of: | |
Paid-in capital |
$ 229,909,801 |
Par value |
156,660 |
Accumulated distributable earnings (loss) |
23,836,836 |
NET ASSETS |
$253,903,297 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) |
$16.21 |
Number of |
INVESTMENT INCOME: | ||
Dividends (net of foreign withholding tax of $156,312) |
$ 3,572,615 | |
Interest |
418,623 | |
Total investment income |
3,991,238 | |
EXPENSES: | ||
Interest and fees on loans |
1,969,975 | |
Investment advisory fees |
1,678,778 | |
Administrative fees |
79,745 | |
Shareholder reporting fees |
71,049 | |
Audit and tax fees |
30,470 | |
Legal fees |
30,070 | |
Custodian fees |
14,538 | |
Listing expense |
10,554 | |
Trustees’ fees and expenses |
9,192 | |
Transfer agent fees |
9,167 | |
Financial reporting fees |
4,612 | |
Other |
21,526 | |
Total expenses |
3,929,676 | |
NET INVESTMENT INCOME (LOSS) |
61,562 | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
Net realized gain (loss) on: | ||
Investments |
11,905,161 | |
Written options contracts |
1,834,472 | |
Swap contracts |
390,281 | |
Foreign currency transactions |
(24,146) | |
Net realized gain (loss) |
14,105,768 | |
Net change in unrealized appreciation (depreciation) on: | ||
Investments |
(34,625,194) | |
Written options contracts |
877,800 | |
Swap contracts |
(199,583) | |
Foreign currency translation |
507 | |
Net change in unrealized appreciation (depreciation) |
(33,946,470) | |
NET REALIZED AND UNREALIZED GAIN (LOSS) |
(19,840,702) | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$(19,779,140) |
Six
Months Ended 5/31/2023 (Unaudited) |
Year Ended 11/30/2022 | ||
OPERATIONS: | |||
Net investment income (loss) |
$ 61,562 | $ 965,487 | |
Net realized gain (loss) |
14,105,768 | 42,103,089 | |
Net change in unrealized appreciation (depreciation) |
(33,946,470) | 20,570,411 | |
Net increase (decrease) in net assets resulting from operations |
(19,779,140) | 63,638,987 | |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations |
(7,192,130) | (8,831,837) | |
Return of capital |
— | (3,385,574) | |
Total distributions to shareholders |
(7,192,130) | (12,217,411) | |
CAPITAL TRANSACTIONS: | |||
Repurchase of Common Shares * |
(333,089) | (14,078,800) | |
Net increase (decrease) in net assets resulting from capital transactions |
(333,089) | (14,078,800) | |
Total increase (decrease) in net assets |
(27,304,359) | 37,342,776 | |
NET ASSETS: | |||
Beginning of period |
281,207,656 | 243,864,880 | |
End of period |
$ 253,903,297 | $ 281,207,656 | |
CAPITAL TRANSACTIONS were as follows: | |||
Common Shares at beginning of period |
15,688,201 | 16,664,338 | |
Common Shares repurchased * |
(22,162) | (976,137) | |
Common Shares at end of period |
15,666,039 | 15,688,201 |
* | On September 15, 2020, the Fund commenced a share repurchase program. For the six months ended May 31, 2023 and the fiscal year ended November 30, 2022, the Fund repurchased 22,162 and 976,137 Common Shares, respectively, at a weighted-average discount of 13.97% and 13.62%, respectively, from net asset value per share. The Fund’s share repurchase program ended on March 15, 2023. |
Cash flows from operating activities: | ||
Net increase (decrease) in net assets resulting from operations |
$(19,779,140) | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities: | ||
Purchases of investments |
(137,588,951) | |
Sales, maturities and paydown of investments |
121,949,078 | |
Proceeds from written options |
2,476,171 | |
Amount paid to close written options |
(124,915) | |
Return of capital received from investment in MLPs |
4,820,520 | |
Net realized gain/loss on investments and written options |
(13,739,633) | |
Net change in unrealized appreciation/depreciation on investments and written options |
33,747,394 | |
Net change in unrealized appreciation/depreciation on swap contracts |
199,583 | |
Changes in assets and liabilities: | ||
Increase in interest receivable |
(81,015) | |
Increase in dividend reclaims receivable |
(2,836) | |
Decrease in dividends receivable |
24,109 | |
Increase in prepaid expenses |
(12,224) | |
Increase in due to custodian foreign currency |
2 | |
Increase in due to custodian |
21,525 | |
Increase in interest and fees payable on loans |
96,572 | |
Increase in investment advisory fees payable |
923 | |
Decrease in audit and tax fees payable |
(30,363) | |
Increase in legal fees payable |
82 | |
Decrease in shareholder reporting fees payable |
(12,952) | |
Increase in administrative fees payable |
497 | |
Increase in custodian fees payable |
2,441 | |
Decrease in transfer agent fees payable |
(27) | |
Increase in trustees’ fees and expenses payable |
4,583 | |
Decrease in financial reporting fees payable |
(13) | |
Decrease in other liabilities payable |
(286) | |
Cash used in operating activities |
$(8,028,875) | |
Cash flows from financing activities: | ||
Repurchase of Common Shares |
(333,089) | |
Distributions to Common Shareholders from investment operations |
(7,192,130) | |
Cash used in financing activities |
(7,525,219) | |
Decrease in cash and cash segregated as collateral for open swap contracts (a) |
(15,554,094) | |
Cash and cash segregated as collateral for open swap contracts at beginning of period |
17,012,968 | |
Cash and cash segregated as collateral for open swap contracts at end of period |
$1,458,874 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest and fees |
$1,873,403 | |
Cash and cash segregated as collateral for open swap contracts reconciliation: | ||
Cash |
$0 | |
Cash segregated as collateral for open swap contracts |
1,458,874 | |
Cash and cash segregated as collateral for open swap contracts at end of period |
$1,458,874 |
(a) | Includes net change in unrealized appreciation (depreciation) on foreign currency of $507. |
Six
Months Ended 5/31/2023 (Unaudited) |
Year Ended November 30, | |||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||
Net asset value, beginning of period |
$ 17.92 | $ 14.63 | $ 12.47 | $ 16.84 | $ 16.79 | $ 18.73 | ||||||
Income from investment operations: | ||||||||||||
Net investment income (loss) |
0.01 | 0.06 | 0.16 | 0.03 | 0.01 | 0.18 | ||||||
Net realized and unrealized gain (loss) |
(1.26) | 3.84 | 2.68 | (3.43) | 1.36 | (0.80) | ||||||
Total from investment operations |
(1.25) | 3.90 | 2.84 | (3.40) | 1.37 | (0.62) | ||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income |
(0.46) | (0.17) | (0.18) | (0.46) | (0.25) | (0.63) | ||||||
Net realized gain |
— | (0.37) | — | — | (0.05) | — | ||||||
Return of capital |
— | (0.21) | (0.57) | (0.53) | (1.02) | (0.69) | ||||||
Total distributions paid to Common Shareholders |
(0.46) | (0.75) | (0.75) | (0.99) | (1.32) | (1.32) | ||||||
Common Share repurchases |
0.00 (a) | 0.14 | 0.07 | 0.02 | — | — | ||||||
Net asset value, end of period |
$ | $17.92 | $14.63 | $12.47 | $16.84 | $16.79 | ||||||
Market value, end of period |
$ | $15.24 | $13.23 | $10.52 | $15.45 | $14.86 | ||||||
Total return based on net asset value (b) |
(6.68)% | 29.10% | 24.46% | (19.31)% | 9.14% | (2.83)% | ||||||
Total return based on market value (b) |
(5.77)% | 21.34% | 33.41% | (25.80)% | 13.13% | (9.00)% | ||||||
Ratios to average net assets/supplemental data: | ||||||||||||
Net assets, end of period (in 000’s) |
$ 253,903 | $ 281,208 | $ 243,865 | $ 216,439 | $ 295,623 | $ 294,617 | ||||||
Ratio of total expenses to average net assets |
2.96% (c) | 2.03% | 1.70% | 2.04% | 2.65% | 2.50% | ||||||
Ratio of total expenses to average net assets excluding interest expense and fees on loans |
1.48% (c) | 1.45% | 1.45% | 1.52% | 1.55% | 1.54% | ||||||
Ratio of net investment income (loss) to average net assets |
0.05% (c) | 0.36% | 0.99% | 0.24% | 0.05% | 1.02% | ||||||
Portfolio turnover rate |
29% | 60% | 73% | 80% | 55% | 58% | ||||||
Indebtedness: | ||||||||||||
Total loans outstanding (in 000’s) |
$ 70,300 | $ 70,300 | $ 62,800 | $ 55,300 | $ 107,500 | $ 104,500 | ||||||
Asset coverage per $1,000 of indebtedness (d) |
$ 4,612 | $ 5,000 | $ 4,883 | $ 4,914 | $ 3,750 | $ 3,819 |
(a) | Amount represents less than $0.01 per share. |
(b) | 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. |
(c) | Annualized. |
(d) | Calculated by subtracting the Fund’s total liabilities (not including the loans outstanding) from the Fund’s total assets, and dividing by the outstanding loans balance in 000’s. |
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. |
1) | the value of similar foreign securities traded on other foreign markets; |
2) | ADR trading of similar securities; |
3) | closed-end fund or exchange-traded fund trading of similar securities; |
4) | foreign currency exchange activity; |
5) | the trading prices of financial products that are tied to baskets of foreign securities; |
6) | factors relating to the event that precipitated the pricing problem; |
7) | whether the event is likely to recur; |
8) | whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and |
9) | 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. |
Gross
Amounts not Offset in the Statement of Assets and Liabilities |
|||||||||||
Gross Amounts of Recognized Assets |
Gross
Amounts Offset in the Statement of Assets and Liabilities |
Net
Amounts of Assets Presented in the Statement of Assets and Liabilities |
Financial Instruments |
Collateral Amounts Received |
Net Amount | ||||||
Interest
Rate Swap Agreements |
$ 1,202,670 | $ — | $ 1,202,670 | $ — | $ — | $ 1,202,670 | |||||
Gross
Amounts not Offset in the Statement of Assets and Liabilities |
|||||||||||
Gross Amounts of Recognized Liabilities |
Gross
Amounts Offset in the Statement of Assets and Liabilities |
Net
Amounts of Liabilities Presented in the Statement of Assets and Liabilities |
Financial Instruments |
Collateral Amounts Pledged |
Net Amount | ||||||
Interest
Rate Swap Agreements |
$ (168) | $ — | $ (168) | $ — | $ 168 | $ — |
Distributions paid from: | |
Ordinary income |
$8,831,837 |
Capital gains |
— |
Return of capital |
3,385,574 |
Undistributed ordinary income |
$— |
Undistributed capital gains |
— |
Total undistributed earnings |
— |
Accumulated capital and other losses |
— |
Net unrealized appreciation (depreciation) |
56,890,204 |
Total accumulated earnings (losses) |
56,890,204 |
Other |
(6,082,098) |
Paid-in capital |
230,399,550 |
Total net assets |
$281,207,656 |
Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized (Depreciation) |
Net
Unrealized Appreciation (Depreciation) | |||
$306,714,863 | $29,545,099 | $(14,654,875) | $14,890,224 |
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 | $ 142,059 | |||||
Interest Rate Swap Agreements | Interest Rate Risk | Swap contracts, at value | 1,202,670 | Swap contracts, at value | 168 |
Statement of Operations Location | |
Equity Risk Exposure | |
Net realized gain (loss) on written options contracts | $1,834,472 |
Net change in unrealized appreciation (depreciation) on written options contracts | 877,800 |
Interest Rate Risk Exposure | |
Net realized gain (loss) on swap contracts | $390,281 |
Net change in unrealized appreciation (depreciation) on swap contracts | (199,583) |
(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 this 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.
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
Month #1 (12/01/2022 – 12/31/2022) |
22,162 | 15.03 | 1,884,197 | 4,825 |
Month #2 (01/01/2023 – 01/31/2023) |
0 | 0 | 0 | 0 |
Month #3 (02/01/2023 – 02/28/2023) |
0 | 0 | 0 | 0 |
Month #4 (03/01/2023 – 03/31/2023) |
0 | 0 | 0 | 0 |
Month #5 (04/01/2023 – 04/30/2023) |
0 | 0 | 0 | 0 |
Month #6 (05/01/2023 – 05/31/2023) |
0 | 0 | 0 | 0 |
Total | 22,162 | $15.03 | 1,884,197 |
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 have materially affected, or are 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-1 under the 1940 Act. (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 Energy Infrastructure Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | August 4, 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: | August 4, 2023 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | August 4, 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 Energy Infrastructure 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: | August 4, 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, Donald P. Swade, certify that:
1. | I have reviewed this report on Form N-CSR of First Trust Energy Infrastructure 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: | August 4, 2023 | /s/ Donald P. Swade | |||
Donald P. Swade, 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, President and Chief Executive Officer of First Trust Energy Infrastructure 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: | August 4, 2023 | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
I, Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer of First Trust Energy Infrastructure 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: | August 4, 2023 | /s/ Donald P. Swade | |||
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Notice Regarding Your Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on December 15, 2022, to shareholders of record as of December 2, 2022, with an ex-dividend date of December 1, 2022. 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 as of November 30, 2022, 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.06400 | $0.06400 | — | — | — | 100.00% | — | — | — | 4.28% | 6.56% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.06400 | $0.06400 | — | — | — | 100.00% | — | — | — | 0.36% | 29.10% |
(1) | Includes the most recent monthly distribution paid on December 15, 2022. |
(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 November 30, 2022. |
(4) | Total Returns are through November 30, 2022. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on January 17, 2023, to shareholders of record as of January 4, 2023, with an ex-dividend date of January 3, 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 as of December 31, 2022, 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.06450 | $0.06450 | — | — | — | 100.00% | — | — | — | 4.55% | 5.33% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.12850 | $0.12850 | — | — | — | 100.00% | — | — | — | 0.76% | -4.71% |
(1) | Includes the most recent monthly distribution paid on January 17, 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 December 31, 2022. |
(4) | Total Returns are through December 31, 2022. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on February 15, 2023, to shareholders of record as of February 2, 2023, with an ex-dividend date of February 1, 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 as of January 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.06500 | $0.06500 | — | — | — | 100.00% | — | — | — | 4.44% | 6.12% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.19350 | $0.19350 | — | — | — | 100.00% | — | — | — | 1.10% | -1.21% |
(1) | Includes the most recent monthly distribution paid on February 15, 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 January 31, 2023. |
(4) | Total Returns are through January 31, 2023. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on March 15, 2023, to shareholders of record as of March 3, 2023, with an ex-dividend date of March 2, 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 as of February 28, 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.06550 | $0.06550 | — | — | — | 100.00% | — | — | — | 4.67% | 7.56% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.25900 | $0.25900 | — | — | — | 100.00% | — | — | — | 1.54% | -4.96% |
(1) | Includes the most recent monthly distribution paid on March 15, 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. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on April 17, 2023, to shareholders of record as of April 4, 2023, with an ex-dividend date of April 3, 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 as of 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.10000 | $0.10000 | — | — | — | 100.00% | — | — | — | 7.12% | 8.50% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.35900 | $0.35900 | — | — | — | 100.00% | — | — | — | 2.13% | -4.28% |
(1) | Includes the most recent monthly distribution paid on April 17, 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 March 31, 2023. |
(4) | Total Returns are through March 31, 2023. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 Monthly Distribution
First Trust Energy Infrastructure Fund (FIF)
The closed-end fund listed above (the “Fund”) has declared a distribution payable on May 15, 2023, to shareholders of record as of May 2, 2023, with an ex-dividend date of May 1, 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 as of April 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.10000 | $0.10000 | — | — | — | 100.00% | — | — | — | 6.99% | 8.00% | |||||||||||||
Cumulative | Cumulative | |||||||||||||||||||||||||
Total Cumulative | Cumulative Distributions Fiscal YTD ($) | 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) | |||||||||||||
FIF (5) | 33738C103 | 11/30/2023 | $0.45900 | $0.45900 | — | — | — | 100.00% | — | — | — | 2.67% | -1.88% |
(1) | Includes the most recent monthly distribution paid on May 15, 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 April 30, 2023. |
(4) | Total Returns are through April 30, 2023. |
(5) | The Fund anticipates that, due to the tax treatment of cash distributions made by Master Limited Partnerships in which the Fund invests, a portion of distributions the Fund makes to Common Shareholders may consist of a tax-deferred return of capital. |
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 |
---|---|
May 31, 2023
$ / shares
shares
| |
Cover [Abstract] | |
Entity Central Index Key | 0001513789 |
Amendment Flag | false |
Entity Inv Company Type | N-2 |
Document Type | N-CSRS |
Entity Registrant Name | First Trust Energy Infrastructure Fund |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | The Fund’s investment objective is to seek a high level of total return with an emphasis on current distributions paid to shareholders. The Fund pursues its investment objective by investing primarily in securities of companies engaged in the energy infrastructure sector. These companies principally include publicly-traded master limited partnerships and limited liability companies taxed as partnerships (“MLPs”), MLP affiliates, YieldCos, pipeline companies, utilities and other infrastructure-related companies that derive at least 50% of their revenues from operating, or providing services in support of, infrastructure assets such as pipelines, power transmission and petroleum and natural gas storage in the petroleum, natural gas and power generation industries (collectively, “Energy Infrastructure Companies”). For purposes of the Fund’s investment objective, total return includes capital appreciation of, and all distributions received from, securities in which the Fund invests, taking into account the varying tax characteristics of such securities. Under normal market conditions, the Fund invests at least 80% of its managed assets (total asset value of the Fund minus the sum of the Fund’s liabilities other than the principal amount of borrowings) in securities of Energy Infrastructure Companies. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors. |
Risk [Text Block] | Principal
Risks
The
Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund
is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance
that the Fund will achieve its investment objective. The following discussion summarizes the principal risks associated with investing
in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational
requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports,
proxy statements and other information that is available for review.
Covered
Call Options Risk. As the writer (seller) of a call option, the Fund forgoes, during the life
of the option, the opportunity to profit from increases in the market value of the portfolio security covering the option above the sum
of the premium and the strike price of the call option but retains the risk of loss should the price of the underlying security decline.
The value of call options written by the Fund, which are priced daily, are determined by trading activity in the broad options market
and will be affected by, among other factors, changes in the value of the underlying security in relation to the strike price, changes
in dividend rates of the underlying security, changes in interest rates, changes in actual or perceived volatility of the stock market
and the underlying security, and the time remaining until the expiration date. The value of call options written by the Fund may be adversely
affected if the market for the option is reduced or becomes illiquid. There can be no assurance that a liquid market will exist when the
Fund seeks to close out an option position.
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.
Energy
Infrastructure Companies Risk. The Fund primarily invests in MLPs, MLP affiliates, YieldCos, pipeline
companies, utilities, and other infrastructure-related companies that derive at least 50% of their revenues from operating, or providing
services in support of, infrastructure assets such as pipelines, power transmission and petroleum and natural gas storage in the petroleum,
natural gas
and power generation industries (“Energy Infrastructure Companies”). Energy Infrastructure Companies may be directly
affected by energy commodity prices, especially those Energy Infrastructure Companies which own the underlying energy commodity. A decrease
in the production or availability of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the
volume of such commodities available for transportation, processing, storage or distribution may adversely impact the financial performance
of Energy Infrastructure Companies. Energy Infrastructure Companies are subject to significant federal, state and local government regulation
in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety
controls, and the prices they may charge for products and services. Various governmental authorities have the power to enforce compliance
with these regulations and the permits issued under them and violators are subject to administrative, civil and criminal penalties, including
civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely
increase compliance costs and may adversely affect the financial performance of Energy Infrastructure Companies. Natural disasters, such
as hurricanes in the Gulf of Mexico, also may impact Energy Infrastructure Companies.
Certain
Energy Infrastructure Companies are subject to the imposition of rate caps, increased competition due to deregulation, counterparties
to contracts defaulting or going bankrupt, the difficulty in obtaining an adequate return on invested capital or in financing large construction
projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the capital market’s
ability to absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile
interest rates and energy conservation may cause difficulties for these companies.
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. Prices of equity securities 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, such as market volatility,
or when political or economic events affecting the issuers occur. 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.
Interest
Rate Swaps Risk. If short-term interest rates are lower than the Fund’s fixed rate of payment
on an interest rate swap, the swap will reduce common share net earnings. In addition, a default by the counterparty to a swap transaction
could also negatively impact the performance of the common shares.
Investment
Concentration Risks. The Fund’s investments are concentrated in Energy Infrastructure Companies
(including investments in MLPs), which may present more risk than if the Fund were broadly diversified over multiple sectors of the economy.
A downturn in one or more industries within the energy infrastructure sector, material declines in commodity prices, adverse political,
legislative or regulatory developments or other events could have a larger impact on the Fund than on an investment company that does
not concentrate in the energy infrastructure sector. Certain risks inherent in investing in the business of the types of securities that
the Fund may invest (such as interests in MLPs) include: commodity pricing risk, commodity supply and demand risk, lack of diversification
of and reliance on customers and suppliers risk including risk of counterparty default, commodity depletion and exploration risk, energy
infrastructure sector and energy utility industry regulatory risk, including risks associated with the prices and methodology of determining
prices that energy companies may charge for their products and services, interest rate risk, risk of lack of acquisition or reinvestment
opportunities, risk of lacking of funding, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and MLP market
disruption risk, obsolescence risk and technology risk.
Companies
that own interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff
rates that they may charge customers and may change policies to no longer permit such companies to include certain costs in their costs
of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other
factors which may reduce the amount of cash an MLP or other Energy Infrastructure Company has available to pay its debt and equity holders
include increased operating costs, maintenance capital expenditures, acquisition costs, expansion or construction costs and borrowing
costs (including increased borrowing costs as a result of additional collateral requirements as a result of ratings downgrades by credit
agencies).
Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the
market price of the common
shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by the Advisor to
the Sub-Advisor will be higher than if the Fund did not use leverage.
Liquidity
Risk. Certain securities in which the Fund may invest may trade less frequently, particularly
those of issuers with smaller capitalizations. Securities with limited trading volumes may display volatile or erratic price movements.
The Fund may have difficulty selling these investments in a timely manner, be forced to sell them for less than it otherwise would have
been able to realize, or both.
Management
Risk and Reliance on Key Personnel. 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. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations
caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates
and perceived trends in securities prices. Shares of a 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,
spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a
fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments,
including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions,
had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines has slowed the spread
of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose
lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging
variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market
disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from those hostilities
could have a significant impact on certain Fund investments as well as Fund performance. As the global pandemic and conflict in Ukraine
have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others.
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. These events also
may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could result in disruptions
in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund’s shares and
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 and the bid/ask spread on the Fund’s shares may widen.
MLP
Risk. Investments in securities of MLPs involve certain risks different from or in addition to
the risks of investing in common stocks. MLP common units can be affected by macro-economic factors and other factors unique to the partnership
or company and the industry or industries in which the MLP operates. Certain MLP securities may trade in relatively low volumes due to
their smaller capitalizations or other factors, which may cause them to have a high degree of price volatility and illiquidity. The structures
of MLPs create certain risks, including, for example, risks related to the limited ability of investors to control an MLP and to vote
on matters affecting the MLP, risks related to potential conflicts of interest between an MLP and the MLP’s general partner, the
risk that an MLP will generate insufficient cash flow to meet its current operating requirements, the risk that an MLP will issue additional
securities or engage in other transactions that will have the effect of diluting the interests of existing investors, and risks related
to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price.
Non-Diversification
Risk. As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities
than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular
security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of the Fund’s shares
may be more volatile than the values of shares of more diversified funds.
Non-U.S.
Securities and Currency Risk. Investing in non-U.S. securities involves certain risks not involved in
domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign economic, financial, political
and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions;
lower trading volume; withholding taxes; greater price volatility and illiquidity; different trading and settlement practices; less governmental
supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available information; and different accounting,
auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value of the Fund’s securities and
the unrealized appreciation or depreciation of investments.
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.
Potential
Conflicts of Interest Risk. First Trust, EIP and the portfolio managers have interests which may conflict
with the interests of the Fund. In particular, First Trust and EIP currently manage and may in the future manage and/or advise other investment
funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund
is using leverage, the amount of the fees paid to First Trust (and by First Trust to EIP) for investment advisory and management services
are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First Trust
and EIP have a financial incentive to leverage the Fund.
Qualified
Dividend Income Tax Risk. There can be no assurance as to what portion of the distributions paid to
the Fund’s common shareholders will consist of tax-advantaged qualified dividend income. Certain distributions designated by the
Fund as derived from qualified dividend income will be taxed in the hands of non-corporate common shareholders at the rates applicable
to long-term capital gains, provided certain holding period and other requirements are satisfied by both the Fund and the common shareholders.
Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income.
Certain investment strategies of the Fund will limit the Fund’s ability to meet these requirements and consequently will limit the
amount of qualified dividend income received and distributed by the Fund. A change in the favorable provisions of the federal tax laws
with respect to qualified dividends may result in a widespread reduction in announced dividends and may adversely impact the valuation
of the shares of dividend-paying companies.
Recent
Market and Economic Developments. In recent years, prices of oil and other energy commodities have experienced
significant volatility. During such periods, such volatility has adversely impacted many of the MLPs, MLP-related entities and other companies
in the energy sector and energy utility industries in which the Fund has invested or may invest. For example, many MLPs, MLP-related entities
and other companies in the energy sector and energy utility industries have in recent years experienced eroding growth prospects, reduced
distribution levels or, in some cases, bankruptcy. These conditions have impacted, and may in the future impact, the NAV of the Fund and
its ability to pay distributions to shareholders at current or historic levels.
Renewable
Energy Company Risk. Renewable energy companies are a subset of Energy Infrastructure Companies
and, as such, are subject to many of the same risks as Energy Infrastructure Companies. In addition, the future growth of renewable energy
companies may be dependent upon government policies that support renewable power generation and enhance the economic viability of owning
renewable electric generation assets. Such policies can include renewable portfolio standard programs, which mandate that a specified
percentage of electricity sales come from eligible sources of renewable energy, accelerated cost-recovery systems of depreciation and
tax credits.
Tax
Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely
affect the Fund or the MLPs, MLP-related entities and other energy sector and energy utility companies in which the Fund invests. A change
in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in
an MLP being treated as a corporation for United States federal income tax purposes, which would result in such MLP being required to
pay United States federal income tax on its taxable income. In the past, certain events have caused some MLPs to be reclassified or restructured
as corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing
the amount of cash available for distribution by the MLP and causing any such distributions received by the Fund to be taxed as dividend
income to the extent of the MLP’s current or accumulated earnings and profits.
A
reduction in the percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result
in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as a return of capital and increase that
portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand,
to the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in
the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the amount of
loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
Utilities
Risk. Utility companies include companies producing or providing gas, electricity or water. These
companies are subject to the risk of the imposition of rate caps, increased competition due to deregulation, the difficulty in obtaining
an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs
and delays attributable to environmental considerations and the capital market’s ability to absorb utility debt. In addition, in
many regions, including the United States, the utility industry is experiencing increasing competitive pressures, primarily in wholesale
markets, as a result of consumer
demand, technological advances, greater availability of natural gas with respect to electric utility companies and other factors. Taxes,
government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation also may
negatively affect utility companies.
Valuation
Risk. Market prices generally will not be available for certain investments in MLPs, and the value
of such investments will ordinarily be determined based on fair valuations determined pursuant to procedures adopted by the Board of Trustees.
The value of these securities typically requires more reliance on the judgment of the Sub-Advisor than that required for securities for
which there is an active trading market. In addition, the Fund relies on information provided by certain MLPs, which is usually not timely,
to calculate taxable income allocable to the MLP units held in the Fund’s portfolio and to determine the tax character of distributions
to common shareholders. From time to time the Fund will modify its estimates and/or assumptions as new information becomes available.
To the extent the Fund modifies its estimates and/or assumptions, the net asset value of the Fund would likely fluctuate.
|
Share Price | $ 13.92 |
NAV Per Share | $ 16.21 |
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 | 15,666,039 |
Covered Call Options Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Covered
Call Options Risk. As the writer (seller) of a call option, the Fund forgoes, during the life
of the option, the opportunity to profit from increases in the market value of the portfolio security covering the option above the sum
of the premium and the strike price of the call option but retains the risk of loss should the price of the underlying security decline.
The value of call options written by the Fund, which are priced daily, are determined by trading activity in the broad options market
and will be affected by, among other factors, changes in the value of the underlying security in relation to the strike price, changes
in dividend rates of the underlying security, changes in interest rates, changes in actual or perceived volatility of the stock market
and the underlying security, and the time remaining until the expiration date. The value of call options written by the Fund may be adversely
affected if the market for the option is reduced or becomes illiquid. There can be no assurance that a liquid market will exist when the
Fund seeks to close out an option position.
|
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.
|
Energy Infrastructure Companies Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Energy
Infrastructure Companies Risk. The Fund primarily invests in MLPs, MLP affiliates, YieldCos, pipeline
companies, utilities, and other infrastructure-related companies that derive at least 50% of their revenues from operating, or providing
services in support of, infrastructure assets such as pipelines, power transmission and petroleum and natural gas storage in the petroleum,
natural gas
and power generation industries (“Energy Infrastructure Companies”). Energy Infrastructure Companies may be directly
affected by energy commodity prices, especially those Energy Infrastructure Companies which own the underlying energy commodity. A decrease
in the production or availability of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the
volume of such commodities available for transportation, processing, storage or distribution may adversely impact the financial performance
of Energy Infrastructure Companies. Energy Infrastructure Companies are subject to significant federal, state and local government regulation
in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety
controls, and the prices they may charge for products and services. Various governmental authorities have the power to enforce compliance
with these regulations and the permits issued under them and violators are subject to administrative, civil and criminal penalties, including
civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely
increase compliance costs and may adversely affect the financial performance of Energy Infrastructure Companies. Natural disasters, such
as hurricanes in the Gulf of Mexico, also may impact Energy Infrastructure Companies.
Certain
Energy Infrastructure Companies are subject to the imposition of rate caps, increased competition due to deregulation, counterparties
to contracts defaulting or going bankrupt, the difficulty in obtaining an adequate return on invested capital or in financing large construction
projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the capital market’s
ability to absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile
interest rates and energy conservation may cause difficulties for these companies.
|
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. Prices of equity securities 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, such as market volatility,
or when political or economic events affecting the issuers occur. 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.
|
Interest Rate Swaps Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Interest
Rate Swaps Risk. If short-term interest rates are lower than the Fund’s fixed rate of payment
on an interest rate swap, the swap will reduce common share net earnings. In addition, a default by the counterparty to a swap transaction
could also negatively impact the performance of the common shares.
|
Investment Concentration Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Investment
Concentration Risks. The Fund’s investments are concentrated in Energy Infrastructure Companies
(including investments in MLPs), which may present more risk than if the Fund were broadly diversified over multiple sectors of the economy.
A downturn in one or more industries within the energy infrastructure sector, material declines in commodity prices, adverse political,
legislative or regulatory developments or other events could have a larger impact on the Fund than on an investment company that does
not concentrate in the energy infrastructure sector. Certain risks inherent in investing in the business of the types of securities that
the Fund may invest (such as interests in MLPs) include: commodity pricing risk, commodity supply and demand risk, lack of diversification
of and reliance on customers and suppliers risk including risk of counterparty default, commodity depletion and exploration risk, energy
infrastructure sector and energy utility industry regulatory risk, including risks associated with the prices and methodology of determining
prices that energy companies may charge for their products and services, interest rate risk, risk of lack of acquisition or reinvestment
opportunities, risk of lacking of funding, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and MLP market
disruption risk, obsolescence risk and technology risk.
Companies
that own interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff
rates that they may charge customers and may change policies to no longer permit such companies to include certain costs in their costs
of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other
factors which may reduce the amount of cash an MLP or other Energy Infrastructure Company has available to pay its debt and equity holders
include increased operating costs, maintenance capital expenditures, acquisition costs, expansion or construction costs and borrowing
costs (including increased borrowing costs as a result of additional collateral requirements as a result of ratings downgrades by credit
agencies).
|
Leverage Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the
market price of the common
shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by the Advisor to
the Sub-Advisor will be higher than if the Fund did not use leverage.
|
Liquidity Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Liquidity
Risk. Certain securities in which the Fund may invest may trade less frequently, particularly
those of issuers with smaller capitalizations. Securities with limited trading volumes may display volatile or erratic price movements.
The Fund may have difficulty selling these investments in a timely manner, be forced to sell them for less than it otherwise would have
been able to realize, or both.
|
Management Risk And Reliance On Key Personnel [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Management
Risk and Reliance on Key Personnel. 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. Securities held by a fund, as well as shares of a fund itself, are subject to market fluctuations
caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates
and perceived trends in securities prices. Shares of a 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,
spread of infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on a
fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments,
including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions,
had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines has slowed the spread
of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose
lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging
variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market
disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from those hostilities
could have a significant impact on certain Fund investments as well as Fund performance. As the global pandemic and conflict in Ukraine
have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others.
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. These events also
may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could result in disruptions
in the trading markets. Any of such circumstances could have a materially negative impact on the value of the Fund’s shares and
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 and the bid/ask spread on the Fund’s shares may widen.
|
M L P Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | MLP
Risk. Investments in securities of MLPs involve certain risks different from or in addition to
the risks of investing in common stocks. MLP common units can be affected by macro-economic factors and other factors unique to the partnership
or company and the industry or industries in which the MLP operates. Certain MLP securities may trade in relatively low volumes due to
their smaller capitalizations or other factors, which may cause them to have a high degree of price volatility and illiquidity. The structures
of MLPs create certain risks, including, for example, risks related to the limited ability of investors to control an MLP and to vote
on matters affecting the MLP, risks related to potential conflicts of interest between an MLP and the MLP’s general partner, the
risk that an MLP will generate insufficient cash flow to meet its current operating requirements, the risk that an MLP will issue additional
securities or engage in other transactions that will have the effect of diluting the interests of existing investors, and risks related
to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price.
|
Non Diversification Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Non-Diversification
Risk. As a “non-diversified” fund, the Fund may hold a smaller number of portfolio securities
than many other funds. To the extent the Fund invests in a relatively small number of issuers, a decline in the market value of a particular
security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of the Fund’s shares
may be more volatile than the values of shares of more diversified funds.
|
Non U S Securities And Currency Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Non-U.S.
Securities and Currency Risk. Investing in non-U.S. securities involves certain risks not involved in
domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign economic, financial, political
and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions;
lower trading volume; withholding taxes; greater price volatility and illiquidity; different trading and settlement practices; less governmental
supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available information; and different accounting,
auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value of the Fund’s securities and
the unrealized appreciation or depreciation of investments.
|
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.
|
Potential Conflicts Of Interest Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Potential
Conflicts of Interest Risk. First Trust, EIP and the portfolio managers have interests which may conflict
with the interests of the Fund. In particular, First Trust and EIP currently manage and may in the future manage and/or advise other investment
funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund
is using leverage, the amount of the fees paid to First Trust (and by First Trust to EIP) for investment advisory and management services
are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First Trust
and EIP have a financial incentive to leverage the Fund.
|
Qualified Dividend Income Tax Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Qualified
Dividend Income Tax Risk. There can be no assurance as to what portion of the distributions paid to
the Fund’s common shareholders will consist of tax-advantaged qualified dividend income. Certain distributions designated by the
Fund as derived from qualified dividend income will be taxed in the hands of non-corporate common shareholders at the rates applicable
to long-term capital gains, provided certain holding period and other requirements are satisfied by both the Fund and the common shareholders.
Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income.
Certain investment strategies of the Fund will limit the Fund’s ability to meet these requirements and consequently will limit the
amount of qualified dividend income received and distributed by the Fund. A change in the favorable provisions of the federal tax laws
with respect to qualified dividends may result in a widespread reduction in announced dividends and may adversely impact the valuation
of the shares of dividend-paying companies.
|
Recent Market And Economic Developments [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Recent
Market and Economic Developments. In recent years, prices of oil and other energy commodities have experienced
significant volatility. During such periods, such volatility has adversely impacted many of the MLPs, MLP-related entities and other companies
in the energy sector and energy utility industries in which the Fund has invested or may invest. For example, many MLPs, MLP-related entities
and other companies in the energy sector and energy utility industries have in recent years experienced eroding growth prospects, reduced
distribution levels or, in some cases, bankruptcy. These conditions have impacted, and may in the future impact, the NAV of the Fund and
its ability to pay distributions to shareholders at current or historic levels.
|
Renewable Energy Company Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Renewable
Energy Company Risk. Renewable energy companies are a subset of Energy Infrastructure Companies
and, as such, are subject to many of the same risks as Energy Infrastructure Companies. In addition, the future growth of renewable energy
companies may be dependent upon government policies that support renewable power generation and enhance the economic viability of owning
renewable electric generation assets. Such policies can include renewable portfolio standard programs, which mandate that a specified
percentage of electricity sales come from eligible sources of renewable energy, accelerated cost-recovery systems of depreciation and
tax credits.
|
Tax Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Tax
Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely
affect the Fund or the MLPs, MLP-related entities and other energy sector and energy utility companies in which the Fund invests. A change
in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in
an MLP being treated as a corporation for United States federal income tax purposes, which would result in such MLP being required to
pay United States federal income tax on its taxable income. In the past, certain events have caused some MLPs to be reclassified or restructured
as corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing
the amount of cash available for distribution by the MLP and causing any such distributions received by the Fund to be taxed as dividend
income to the extent of the MLP’s current or accumulated earnings and profits.
A
reduction in the percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result
in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as a return of capital and increase that
portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand,
to the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in
the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the amount of
loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
|
Utilities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Utilities
Risk. Utility companies include companies producing or providing gas, electricity or water. These
companies are subject to the risk of the imposition of rate caps, increased competition due to deregulation, the difficulty in obtaining
an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs
and delays attributable to environmental considerations and the capital market’s ability to absorb utility debt. In addition, in
many regions, including the United States, the utility industry is experiencing increasing competitive pressures, primarily in wholesale
markets, as a result of consumer
demand, technological advances, greater availability of natural gas with respect to electric utility companies and other factors. Taxes,
government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation also may
negatively affect utility companies.
|
Valuation Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Valuation
Risk. Market prices generally will not be available for certain investments in MLPs, and the value
of such investments will ordinarily be determined based on fair valuations determined pursuant to procedures adopted by the Board of Trustees.
The value of these securities typically requires more reliance on the judgment of the Sub-Advisor than that required for securities for
which there is an active trading market. In addition, the Fund relies on information provided by certain MLPs, which is usually not timely,
to calculate taxable income allocable to the MLP units held in the Fund’s portfolio and to determine the tax character of distributions
to common shareholders. From time to time the Fund will modify its estimates and/or assumptions as new information becomes available.
To the extent the Fund modifies its estimates and/or assumptions, the net asset value of the Fund would likely fluctuate.
|
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