Profile
Sector:
Financial ServicesIndustry:
Asset ManagementCountry:
United StatesIPO:
28 September 2011Website:
http://www.ftportfolios.comNext earnings report:
N/ALast dividends:
N/ANext dividends:
N/ADividend
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FIF Latest News
Closed-end fund, First Trust Energy Infrastructure Fund, will be converted into an exchange-traded fund, narrowing its discount to net asset value to 5.65%. The conversion is expected to happen in Q2 2024, potentially erasing the FIF CEF discount and providing a return of around 6.38% for investors. The underlying stocks in the portfolio have decent valuations and strong cash flows, making them attractive holdings.
First Trust Energy Infrastructure Fund is a pipeline-focused closed-end fund trading at a 5.97% discount to net asset value. FIF is set to convert to an ETF in Q2 2024, which will eliminate the discount and potentially provide a 6.38% return. Hedging the position can mitigate underlying volatility while accepting the pipeline beta can provide stable returns and monthly distributions.
First Trust Energy Infrastructure Fund's discount has narrowed due to its expected merger into an exchange-traded fund structure, which eliminates the potential for material discounts in the future. The fund's performance has been strong thanks to the conversion proposal but also aided by receding risk-free Treasury Rates. The merger will also include its other sister funds, creating a larger fund called First Trust Energy Income Partners Enhance Income ETF, expected to occur in Q2 2024.
First Trust Energy Infrastructure Fund focuses on investing in companies in the energy infrastructure sector, which are critical for modern life but taken for granted. The fund has outperformed its peers, possibly due to its ability to invest in electric utilities and renewables when opportunities exist. The fund's portfolio consists primarily of common equity and has a reasonable level of leverage.
FIF is invested in both the energy and utility sectors, with some of the largest holdings being MLP positions. The fund had been raising its distribution slowly but more recently gave a big bump in its payout. The fund is deeply discounted and provides diversified exposure to the infrastructure space.
What type of business is First Trust Energy Infrastructure Fund?
First Trust Energy Infrastructure Fund is a closed-ended equity mutual fund launched and managed by First Trust Advisors L.P. The fund is co-managed by Energy Income Partners LLC. It invests in the public equity markets of the United States. The fund seeks to invest in stocks of companies operating in the energy infrastructure sector, including pipeline companies, utilities, and other 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. It primarily invests in stocks of publicly-traded master limited partnerships and MLP affiliates. The fund benchmarks the performance of its portfolio against the Philadelphia Stock Exchange Utility Index, Alerian MLP Total Return Index, and a blended index comprised of 50% Philadelphia Stock Exchange Utility Index and 50% Alerian MLP Total Return Index. First Trust Energy Infrastructure Fund was formed on February 22, 2011 and is domiciled in the United States.
What sector is First Trust Energy Infrastructure Fund in?
First Trust Energy Infrastructure Fund is in the Financial Services sector
What industry is First Trust Energy Infrastructure Fund in?
First Trust Energy Infrastructure Fund is in the Asset Management industry
What country is First Trust Energy Infrastructure Fund from?
First Trust Energy Infrastructure Fund is headquartered in United States
When did First Trust Energy Infrastructure Fund go public?
First Trust Energy Infrastructure Fund initial public offering (IPO) was on 28 September 2011
What is First Trust Energy Infrastructure Fund website?
https://www.ftportfolios.com/Retail/cef/cefsummary.aspx?Ticker=FIF
Is First Trust Energy Infrastructure Fund in the S&P 500?
No, First Trust Energy Infrastructure Fund is not included in the S&P 500 index
Is First Trust Energy Infrastructure Fund in the NASDAQ 100?
No, First Trust Energy Infrastructure Fund is not included in the NASDAQ 100 index
Is First Trust Energy Infrastructure Fund in the Dow Jones?
No, First Trust Energy Infrastructure Fund is not included in the Dow Jones index
When does First Trust Energy Infrastructure Fund report earnings?
Next earnings report date is not announced yet