0001445546-13-001534.txt : 20130319
0001445546-13-001534.hdr.sgml : 20130319
20130319161522
ACCESSION NUMBER: 0001445546-13-001534
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20130319
ITEM INFORMATION: Regulation FD Disclosure
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20130319
DATE AS OF CHANGE: 20130319
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: FIRST TRUST ENERGY INCOME & GROWTH FUND
CENTRAL INDEX KEY: 0001284940
IRS NUMBER: 113716544
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 811-21549
FILM NUMBER: 13701790
BUSINESS ADDRESS:
STREET 1: 187 DANBURY ROAD
CITY: WILTON
STATE: CT
ZIP: 06897
BUSINESS PHONE: 630-765-8000
MAIL ADDRESS:
STREET 1: FIRST TRUST PORTFOLIOS L P
STREET 2: 120 EAST LIBERTY DRIVE, SUITE 400
CITY: WHEATON
STATE: IL
ZIP: 60187
FORMER COMPANY:
FORMER CONFORMED NAME: ENERGY INCOME & GROWTH FUND
DATE OF NAME CHANGE: 20040325
8-K
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fen_8k.txt
CURRENT REPORT
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) March 19, 2013
First Trust Energy Income and Growth Fund
(Exact Name of Registrant as Specified in its Charter)
Massachusetts 811-21549 11-3716544
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
187 Danbury Road
Wilton, Connecticut 06897
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (630) 765-8000
___________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 7.01 REGULATION FD DISCLOSURE.
First Trust Energy Income and Growth Fund (the "Fund") is filing herewith a
letter to shareholders relating to the Fund's derivative investments. The letter
will be posted on the Fund's website at
http://www.ftportfolios.com/Retail/Cef/CefFundNews.aspx?Ticker=FEN.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
EXHIBIT
NUMBER DESCRIPTION
99.1 Letter to Shareholders
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 19 , 2013 FIRST TRUST ENERGY INCOME AND GROWTH FUND
By: /s/ W. Scott Jardine
----------------------------------
Name: W. Scott Jardine
Title: Secretary
EXHIBIT INDEX
Exhibit
Number Description
99.1 Letter to Shareholders
EX-99.1
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letter.txt
LETTER TO SHAREHOLDERS
FIRST TRUST ENERGY INCOME AND GROWTH FUND
187 Danbury Road
Wilton, Connecticut 06897
March 19, 2013
Dear Shareholders:
I am pleased to announce that the Board of Trustees of First Trust Energy Income
and Growth Fund (NYSE MKT: FEN) has recently approved certain clarifications to
the Fund's derivatives investment strategy to clarify the ability of the Fund to
utilize total return swaps for investment, hedging and risk management purposes.
On or about May 22, 2013, the Fund may utilize total return swaps for
investment, hedging and risk management purposes.
Accordingly, the Fund's prospectus has been updated to state the following under
"HEDGING AND STRATEGIC TRANSACTIONS."
The Fund may, but is not required to, use various hedging and strategic
transactions to seek to reduce interest rate risks arising from any use of
Financial Leverage, to facilitate portfolio management and to mitigate
risks, including interest rate, currency and credit risks. The Fund
currently writes (or sells) covered call options on the common stock of
energy companies held in the Fund's portfolio. Call options are contracts
representing the right to purchase a common stock at a specified price
(the "strike price") at a specified future date (the "expiration date").
The price of the option is determined from trading activity in the broad
options market, and generally reflects the relationship between the
current market price for the underlying common stock and the strike price,
as well as the time remaining until the expiration date. The Fund will
write call options only if they are "covered." In the case of a call
option on a common stock or other security, the option is "covered" if the
Fund owns the security underlying the call or has an absolute and
immediate right to acquire that security without additional cash
consideration (or, if additional cash consideration is required, cash or
other assets determined to be liquid by the Sub-Advisor (in accordance
with procedures established by the Board of Trustees) in such amount are
segregated by the Fund's custodian) upon conversion or exchange of other
securities held by the Fund.
The Fund may purchase and sell other derivative investments such as total
return and equity swaps, exchange-listed and over-the-counter put and call
options on securities, energy-related commodities, equity, fixed income
and interest rate indices, currencies, and other financial instruments,
purchase and sell financial futures contracts and options thereon, and
enter into various interest rate transactions such as swaps, caps, floors
or collars or credit transactions and credit default swaps. The Fund also
may purchase derivative investments that combine features of these
instruments. Collectively, all of the above are referred to as "Strategic
Transactions." The Fund generally seeks to use these instruments and
transactions as a portfolio management or hedging technique to seek to
protect against possible adverse changes in the market value of securities
held in or to be purchased for the Fund's portfolio, protect the value of
the Fund's portfolio, facilitate the sale of certain securities for
investment purposes, manage the effective interest rate and currency
exposure of the Fund, or establish positions in the derivatives markets as
a temporary substitute for purchasing or selling particular securities.
For purposes of determining the Fund's compliance with the investment
requirements relating to MLP and MLP-related entities, the Fund values
Strategic Transactions based upon their respective current fair market
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values. In prior fiscal years, the Fund has entered into interest rate
swaps. During the fiscal year ended November 30, 2012, the Fund wrote
covered call options on the common stocks of energy companies held in the
Fund's portfolio.
Additionally, the Fund's prospectus has been updated to state the following
under "SPECIAL RISK CONSIDERATIONS."
Derivatives Risk: The Fund may enter into total return swaps, credit
default swaps or other types of swaps, options, forwards and combinations
thereof and related derivatives for the purpose of hedging and risk
management. These transactions generally provide for the transfer from one
counterparty to another of certain risks inherent in the ownership of a
financial asset such as a common stock or debt instrument. Such risks
include, among other things, the risk of default and insolvency of the
obligor of such asset, the risk that the credit of the obligor or the
underlying collateral will decline or the risk that the common stock of
the underlying issuer will decline in value. The transfer of risk pursuant
to a derivative of this type may be complete or partial, and may be for
the life of the related asset or for a shorter period. These derivatives
may be used for investment purposes or as a risk management tool for a
pool of financial assets, providing the Fund with the opportunity to gain
or reduce exposure to one or more reference securities or other financial
assets without actually owning or selling such assets in order, for
example, to increase or reduce a concentration risk or to diversify a
portfolio. Conversely, these derivatives may be used by the Fund to reduce
exposure to an owned asset without selling it. Furthermore, the ability to
successfully use hedging and interest rate transactions depends on the
Sub-Advisor's ability to predict pertinent market movements, which cannot
be assured. Thus, the use of derivatives for hedging and interest rate
management purposes may result in losses greater than if they had not been
used, may require the Fund to sell or purchase portfolio securities at
inopportune times or for prices other than current market values, may
limit the amount of appreciation the Fund can realize on an investment, or
may cause the Fund to hold a security that it might otherwise sell.
Additionally, amounts paid by the Fund as premiums and cash or other
assets held in margin accounts with respect to hedging and strategic
transactions are not otherwise available to the Fund for investment
purposes. As the writer of a covered call option, the Fund forgoes, during
the option's life, the opportunity to profit from increases in the market
value of the security covering the call option above the sum of the
premium and the strike price of the call, but has retained the risk of
loss should the price of the underlying security decline. The writer of an
option has no control over the time when it may be required to fulfill its
obligation as a writer of the option. Once an option writer has received
an exercise notice, it cannot effect a closing purchase transaction in
order to terminate its obligation under the option and must deliver the
underlying security at the exercise price.
First Trust Advisors L.P., the Fund's investment advisor, along with its
affiliate First Trust Portfolios L.P., are privately-held companies which
provide a variety of investment services, including asset management and
financial advisory services, with collective assets under management or
supervision of approximately $69 billion as of February 28, 2013 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual funds and
separate managed accounts.
Energy Income Partners, LLC ("EIP") serves as the Fund's investment sub-advisor
and provides advisory services to a number of investment companies and
partnerships for the purpose of investing in MLPs and other energy
infrastructure securities. EIP is one of the early investment advisors
specializing in this area. As of November 30, 2012, EIP managed or supervised
approximately $2.8 billion in client assets.
Past performance is no assurance of future results. Investment return and
principal value of an investment in the Fund will fluctuate. Shares, when sold,
may be worth more or less than their original cost. This closed-end fund invests
in a portfolio consisting primarily of securities issued by MLPs. Investment in
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the Fund involves risks of fluctuations in energy prices, decreases in the
supply of or demand for energy commodities, increased government regulation,
national disasters and various other risks. The use of leverage for investment
purposes increases both investment opportunity and investment risk. The risks of
investing in the Fund are spelled out in the prospectus, shareholder report and
other regulatory filings.
The Fund's daily closing price and daily net asset value per share as well as
other information are available at www.ftportfolios.com or by calling
1-800-988-5891.
Sincerely,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees of First Trust Energy Income and Growth Fund
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