This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

First Trust Energy Infrastructure Fund (“FIF”) Attracts $345 Million In IPO

Stocks in this article: FIF

First Trust Advisors L.P. (“First Trust”), a registered investment advisor, is pleased to announce the launch of the First Trust Energy Infrastructure Fund (“the Fund”), a closed-end fund. 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 commenced trading on September 28, 2011 on the NYSE under the ticker symbol “FIF.”

The Fund will initially raise approximately $345 million in its common share offering, and should the underwriters exercise the overallotment option in full, which may or may not occur, the Fund will raise approximately $395 million. First Trust is the Fund’s investment adviser and is responsible for supervising the Fund’s sub-advisor, monitoring the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical and bookkeeping and other administrative services. First Trust, in consultation with the sub-advisor, will also be responsible for determining the Fund’s overall investment strategy and overseeing its implementation. Energy Income Partners LLC is the Fund’s investment sub-advisor and is responsible for the day-to-day investment strategy of the Fund. The lead managers of the common share underwriting syndicate were Morgan Stanley, Citigroup and BofA Merrill Lynch.

Shares of closed-end investment companies, like the Fund, usually trade on a national stock exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end Funds often trade at a discount to their net asset value.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before investing. For a prospectus which contains this and other information relevant to an investment in the Fund, please contact First Trust Portfolios L.P. at 1-800-621-1675. Investors should read the prospectus carefully before they invest or send money.

This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.

Risk Considerations:

The Fund is subject to risks, including the fact that it is a newly organized closed-end management investment company with no operating history. It is designed for long-term investing and not as a vehicle for trading. Shares of closed-end investment companies frequently trade at a discount from their net asset value (“NAV”). The Fund cannot predict whether or when its common shares will trade at, below or above NAV or at, below or above the initial public offering price.

The Fund is subject to various risks, including investment and market risk, management risk, investment concentration risk, industry specific risk, cash flow risk, non-U.S. securities risk, failure to qualify as a regulated investment company, tax law change risk, delay in investing the proceeds, equity securities risk, Canadian income equities risks, leverage risk, derivatives risk, no operating history risk, market discount from net asset value risk, MLP tax risk, deferred tax risk, portfolio turnover risk, competition risk, potential conflicts of interest risk, restricted securities risk, liquidity risk, valuation risk, interest rate risk, non-diversification risk, anti-takeover provisions risk, inflation risk, certain affiliations risk, and secondary market risk for the Fund’s common shares. There can be no assurance that the fund will achieve its investment objective or earn a return on its assets.

About First Trust Advisors L.P.

First Trust Advisors L.P., along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and competitive municipal underwritings, with collective assets under management or supervision of approximately $46 billion as of August 31, 2011 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs