First Trust Enhanced Equity Income Fund

Frequently Asked Questions About FFA

What does FFA invest in?

The First Trust Enhanced Equity Income Fund functions as a closed-ended equity mutual fund, originally launched and primarily managed by First Trust Advisors L.P. Chartwell Investment Partners, L.P. additionally serves as a co-manager. This fund strategically allocates capital within the public equity markets of the United States, seeking investments in companies across a broad spectrum of sectors and diverse market capitalizations. A key aspect of its strategy involves the writing of covered call options. The fund's portfolio performance is measured against the S&P 500 Index. Established in the United States on August 26, 2004, it was previously recognized as the First Trust/Fiduciary Asset Management Covered Call Fund.

What is the expense ratio of FFA?

First Trust Enhanced Equity Income Fund (FFA) charges an expense ratio of 1.12%. This is the annual fee deducted from fund assets to cover management and operations.

What is FFA's distribution yield?

FFA's trailing-twelve-month yield is 7.14%, calculated from the sum of distributions over the past year divided by the current price.

How does FFA's covered-call strategy work?

FFA sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is FFA?

First Trust Enhanced Equity Income Fund (FFA) has a market value of $444.3M: its share price times its shares outstanding. A closed-end fund trades above or below its net asset value, so its net assets differ from this figure. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is FFA actively managed or an index fund?

FFA's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.