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 811-21586
(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: December 31
Date of reporting period:
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. |
Fund Statistics
|
|
Symbol on New York Stock Exchange
|
FFA
|
Common Share Price
|
$19.92
|
Common Share Net Asset Value (“NAV”)
|
$20.41
|
Premium (Discount) to NAV
|
(
)%
|
Net Assets Applicable to Common Shares
|
$407,928,340
|
Current Quarterly Distribution per Common Share(1)
|
$0.3500
|
Current Annualized Distribution per Common Share
|
$1.4000
|
Current Distribution Rate on Common Share Price(2)
|
7.03
%
|
Current Distribution Rate on NAV(2)
|
6.86
%
|
Performance
|
|
|
|
|
|
|
|
|
Average Annual Total Returns
|
||
|
6 Months Ended
6/30/24
|
1 Year Ended
6/30/24
|
5 Years Ended
6/30/24
|
10 Years Ended
6/30/24
|
Inception
(8/26/04)
to 6/30/24
|
Fund Performance(3)
|
|
|
|
|
|
NAV
|
12.69
%
|
20.33
%
|
12.86
%
|
10.10
%
|
8.59
%
|
Market Value
|
12.82
%
|
21.80
%
|
12.19
%
|
10.89
%
|
8.20
%
|
Index Performance
|
|
|
|
|
|
S&P 500® Index
|
15.29
%
|
24.56
%
|
15.05
%
|
12.86
%
|
10.54
%
|
CBOE S&P 500 BuyWrite Monthly Index
|
7.59
%
|
8.91
%
|
5.56
%
|
5.77
%
|
5.55
%
|
Top Ten Holdings
|
% of Total
Investments
|
Microsoft Corp.
|
10.7%
|
Apple, Inc.
|
8.7
|
NVIDIA Corp.
|
4.9
|
Alphabet, Inc., Class C
|
4.5
|
JPMorgan Chase & Co.
|
3.8
|
Merck & Co., Inc.
|
2.3
|
AbbVie, Inc.
|
2.2
|
Arthur J. Gallagher & Co.
|
2.0
|
Coca-Cola (The) Co.
|
2.0
|
Amazon.com, Inc.
|
1.9
|
Total
|
43.0%
|
Sector Allocation
|
% of Total
Investments
|
Information Technology
|
34.4%
|
Financials
|
14.2
|
Health Care
|
12.1
|
Communication Services
|
9.1
|
Consumer Discretionary
|
7.3
|
Consumer Staples
|
6.4
|
Industrials
|
5.5
|
Energy
|
4.2
|
Materials
|
2.8
|
Real Estate
|
2.0
|
Utilities
|
2.0
|
Total
|
100.0%
|
Fund Allocation
|
% of Net Assets
|
Common Stocks
|
98.1%
|
Common Stocks - Business Development Companies
|
1.1
|
Call Options Written
|
(0.1)
|
Net Other Assets and Liabilities
|
0.9
|
Total
|
100.0%
|
|
|
Average Annual Total Returns
|
|||
|
6 Months Ended
6/30/24
|
1 Year Ended
6/30/24
|
5 Years Ended
6/30/24
|
10 Years Ended
6/30/24
|
Inception
(8/26/04)
to 6/30/24
|
Fund Performance(1)
|
|
|
|
|
|
NAV
|
12.69
%
|
20.33
%
|
12.86
%
|
10.10
%
|
8.59
%
|
Market Value
|
12.82
%
|
21.80
%
|
12.19
%
|
10.89
%
|
8.20
%
|
Index Performance
|
|
|
|
|
|
S&P 500® Index
|
15.29
%
|
24.56
%
|
15.05
%
|
12.86
%
|
10.54
%
|
CBOE S&P 500 BuyWrite Monthly Index
|
7.59
%
|
8.91
%
|
5.56
%
|
5.77
%
|
5.55
%
|
Shares
|
Description
|
Value
|
COMMON STOCKS – 98.1%
|
||
|
Air Freight & Logistics – 1.5%
|
|
21,000
|
FedEx Corp. (a)
|
$6,296,640
|
|
Automobiles – 0.5%
|
|
40,000
|
General Motors Co. (a)
|
1,858,400
|
|
Banks – 6.5%
|
|
350,000
|
Huntington Bancshares, Inc. (a)
|
4,613,000
|
76,000
|
JPMorgan Chase & Co. (a)
|
15,371,760
|
17,500
|
PNC Financial Services Group (The), Inc.
|
2,720,900
|
100,000
|
Truist Financial Corp.
|
3,885,000
|
|
|
26,590,660
|
|
Beverages – 3.1%
|
|
125,000
|
Coca-Cola (The) Co. (a)
|
7,956,250
|
18,500
|
Constellation Brands, Inc., Class A
|
4,759,680
|
|
|
12,715,930
|
|
Biotechnology – 2.1%
|
|
51,000
|
AbbVie, Inc. (a)
|
8,747,520
|
|
Broadline Retail – 1.9%
|
|
40,500
|
Amazon.com, Inc. (a) (b) (c)
|
7,826,625
|
|
Capital Markets – 2.4%
|
|
10,000
|
Goldman Sachs Group (The), Inc. (a)
|
4,523,200
|
52,500
|
Morgan Stanley
|
5,102,475
|
|
|
9,625,675
|
|
Chemicals – 2.2%
|
|
15,000
|
Air Products and Chemicals, Inc. (a)
|
3,870,750
|
16,500
|
Sherwin-Williams (The) Co.
|
4,924,095
|
|
|
8,794,845
|
|
Communications Equipment – 1.4%
|
|
117,500
|
Cisco Systems, Inc.
|
5,582,425
|
|
Consumer Staples Distribution & Retail – 1.6%
|
|
7,800
|
Costco Wholesale Corp. (a)
|
6,629,922
|
|
Diversified Telecommunication Services – 1.3%
|
|
125,000
|
Verizon Communications, Inc.
|
5,155,000
|
|
Electric Utilities – 2.0%
|
|
42,500
|
American Electric Power Co., Inc. (a)
|
3,728,950
|
155,000
|
PPL Corp.
|
4,285,750
|
|
|
8,014,700
|
|
Electrical Equipment – 1.3%
|
|
20,000
|
AMETEK, Inc.
|
3,334,200
|
22,500
|
Vertiv Holdings Co., Class A (b)
|
1,947,825
|
|
|
5,282,025
|
|
Entertainment – 2.1%
|
|
90,000
|
Cinemark Holdings, Inc. (a) (b) (c)
|
1,945,800
|
15,000
|
Electronic Arts, Inc. (a)
|
2,089,950
|
200,000
|
Lions Gate Entertainment Corp., Class B (a) (c)
|
1,714,000
|
19,000
|
Take-Two Interactive Software, Inc. (c)
|
2,954,310
|
|
|
8,704,060
|
Shares
|
Description
|
Value
|
COMMON STOCKS (Continued)
|
||
|
Financial Services – 0.3%
|
|
24,000
|
PayPal Holdings, Inc. (c)
|
$1,392,720
|
|
Ground Transportation – 1.1%
|
|
57,500
|
Canadian Pacific Kansas City Limited (a)
|
4,526,975
|
|
Health Care Equipment & Supplies – 1.1%
|
|
57,626
|
Boston Scientific Corp. (a) (c)
|
4,437,778
|
|
Health Care Providers & Services – 1.6%
|
|
12,600
|
UnitedHealth Group, Inc.
|
6,416,676
|
|
Hotels, Restaurants & Leisure – 3.5%
|
|
68,000
|
Carnival Corp. (b) (c)
|
1,272,960
|
102,000
|
Las Vegas Sands Corp.
|
4,513,500
|
15,000
|
McDonald’s Corp. (a)
|
3,822,600
|
31,500
|
Six Flags Entertainment Corp. (c)
|
1,043,910
|
45,000
|
Starbucks Corp. (a)
|
3,503,250
|
|
|
14,156,220
|
|
Insurance – 3.8%
|
|
31,500
|
Arthur J. Gallagher & Co. (a)
|
8,168,265
|
28,500
|
Chubb Ltd. (a)
|
7,269,780
|
|
|
15,438,045
|
|
Interactive Media & Services – 4.5%
|
|
100,000
|
Alphabet, Inc., Class C (a)
|
18,342,000
|
|
IT Services – 1.1%
|
|
26,500
|
International Business Machines Corp. (a)
|
4,583,175
|
|
Life Sciences Tools & Services – 3.4%
|
|
29,800
|
Danaher Corp.
|
7,445,530
|
12,000
|
Thermo Fisher Scientific, Inc.
|
6,636,000
|
|
|
14,081,530
|
|
Machinery – 1.5%
|
|
18,000
|
Caterpillar, Inc.
|
5,995,800
|
|
Metals & Mining – 0.6%
|
|
54,000
|
Freeport-McMoRan, Inc.
|
2,624,400
|
|
Oil, Gas & Consumable Fuels – 4.2%
|
|
28,000
|
Diamondback Energy, Inc.
|
5,605,320
|
50,000
|
Exxon Mobil Corp. (a)
|
5,756,000
|
39,000
|
Hess Corp. (a)
|
5,753,280
|
|
|
17,114,600
|
|
Pharmaceuticals – 3.7%
|
|
6,500
|
Eli Lilly & Co. (b)
|
5,884,970
|
76,000
|
Merck & Co., Inc. (a)
|
9,408,800
|
|
|
15,293,770
|
|
Semiconductors & Semiconductor Equipment – 9.7%
|
|
4,500
|
Broadcom, Inc. (a) (b)
|
7,224,885
|
154,000
|
Intel Corp. (a)
|
4,769,380
|
42,500
|
Marvell Technology, Inc. (b)
|
2,970,750
|
37,000
|
Micron Technology, Inc. (b)
|
4,866,610
|
160,000
|
NVIDIA Corp. (a) (b)
|
19,766,400
|
|
|
39,598,025
|
Shares
|
Description
|
Value
|
COMMON STOCKS (Continued)
|
||
|
Software – 13.3%
|
|
7,000
|
Adobe, Inc. (a) (b) (c)
|
$3,888,780
|
4,500
|
CrowdStrike Holdings, Inc., Class A (b) (c)
|
1,724,355
|
97,300
|
Microsoft Corp. (a)
|
43,488,235
|
8,600
|
Synopsys, Inc. (a) (c)
|
5,117,516
|
|
|
54,218,886
|
|
Specialized REITs – 2.0%
|
|
34,000
|
Crown Castle, Inc. (a)
|
3,321,800
|
107,000
|
Gaming and Leisure Properties, Inc.
|
4,837,470
|
|
|
8,159,270
|
|
Technology Hardware, Storage & Peripherals – 8.7%
|
|
168,000
|
Apple, Inc. (a) (b)
|
35,384,160
|
|
Textiles, Apparel & Luxury Goods – 1.4%
|
|
28,000
|
NIKE, Inc., Class B (a)
|
2,110,360
|
80,000
|
Tapestry, Inc.
|
3,423,200
|
|
|
5,533,560
|
|
Tobacco – 1.6%
|
|
64,000
|
Philip Morris International, Inc. (a)
|
6,485,120
|
|
Wireless Telecommunication Services – 1.1%
|
|
26,000
|
T-Mobile US, Inc.
|
4,580,680
|
|
Total Common Stocks
|
400,187,817
|
|
(Cost $269,804,050)
|
|
COMMON STOCKS – BUSINESS DEVELOPMENT COMPANIES – 1.1%
|
||
|
Capital Markets – 1.1%
|
|
215,000
|
Ares Capital Corp. (a)
|
4,480,600
|
|
(Cost $3,728,891)
|
|
|
Total Investments – 99.2%
|
404,668,417
|
|
(Cost $273,532,941)
|
|
Number of
Contracts
|
Description
|
Notional
Amount
|
Exercise
Price
|
Expiration
Date
|
Value
|
WRITTEN OPTIONS – (0.1)%
|
|||||
|
Call Options Written – (0.1)%
|
|
|
|
|
(25
)
|
Adobe, Inc.
|
$(1,388,850
)
|
$560.00
|
07/19/24
|
(26,875
)
|
(100
)
|
Amazon.com, Inc.
|
(1,932,500
)
|
225.00
|
08/16/24
|
(21,300
)
|
(175
)
|
Apple, Inc.
|
(3,685,850
)
|
230.00
|
07/19/24
|
(5,425
)
|
(20
)
|
Broadcom, Inc.
|
(3,211,060
)
|
1,930.00
|
07/19/24
|
(14,600
)
|
(225
)
|
Carnival Corp.
|
(421,200
)
|
18.50
|
07/19/24
|
(16,650
)
|
(225
)
|
Cinemark Holdings, Inc.
|
(486,450
)
|
21.00
|
07/19/24
|
(24,750
)
|
(10
)
|
CrowdStrike Holdings, Inc.
|
(383,190
)
|
390.00
|
07/19/24
|
(8,850
)
|
(20
)
|
CrowdStrike Holdings, Inc.
|
(766,380
)
|
405.00
|
07/19/24
|
(8,600
)
|
(30
)
|
Eli Lilly & Co.
|
(2,716,140
)
|
1,000.00
|
08/16/24
|
(36,900
)
|
(100
)
|
Marvell Technology, Inc.
|
(699,000
)
|
80.00
|
08/16/24
|
(11,200
)
|
(100
)
|
Micron Technology, Inc.
|
(1,315,300
)
|
155.00
|
07/19/24
|
(5,300
)
|
(145
)
|
Micron Technology, Inc.
|
(1,907,185
)
|
175.00
|
07/19/24
|
(2,320
)
|
(250
)
|
NVIDIA Corp.
|
(3,088,500
)
|
125.00
|
07/19/24
|
(126,250
)
|
(250
)
|
NVIDIA Corp.
|
(3,088,500
)
|
140.00
|
07/19/24
|
(28,500
)
|
(175
)
|
S&P 500® Index (d)
|
(95,558,400
)
|
5,675.00
|
07/19/24
|
(44,975
)
|
(225
)
|
S&P 500® Index (d)
|
(122,860,800
)
|
5,700.00
|
07/19/24
|
(40,500
)
|
Number of
Contracts
|
Description
|
Notional
Amount
|
Exercise
Price
|
Expiration
Date
|
Value
|
WRITTEN OPTIONS (Continued)
|
|||||
|
Call Options Written (Continued)
|
|
|
|
|
(75
)
|
Vertiv Holdings Co.
|
$(649,275
)
|
$105.00
|
07/19/24
|
$(2,775
)
|
|
Total Written Options
|
(425,770
)
|
|||
|
(Premiums received $653,161)
|
|
|
|
|
|
Net Other Assets and Liabilities – 0.9%
|
3,685,693
|
|
Net Assets – 100.0%
|
$407,928,340
|
(a)
|
All or a portion of these securities are pledged to cover index call options written.
At June 30, 2024, the segregated value of these
securities amounts to $219,848,664.
|
(b)
|
All or a portion of this security’s position represents cover for outstanding options written.
|
(c)
|
Non-income producing security.
|
(d)
|
Call options on securities indices were written on a portion of the common stock positions
that were not used to cover call options
written on individual equity securities held in the Fund’s portfolio.
|
Abbreviations throughout the Portfolio of Investments:
|
|
REITs
|
– Real Estate Investment Trusts
|
Valuation Inputs
ASSETS TABLE
|
||||
|
Total
Value at
6/30/2024
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
Common Stocks*
|
$400,187,817
|
$400,187,817
|
$—
|
$—
|
Common Stocks - Business Development Companies*
|
4,480,600
|
4,480,600
|
—
|
—
|
Total Investments
|
$404,668,417
|
$404,668,417
|
$—
|
$—
|
|
||||
LIABILITIES TABLE
|
||||
|
Total
Value at
6/30/2024
|
Level 1
Quoted
Prices
|
Level 2
Significant
Observable
Inputs
|
Level 3
Significant
Unobservable
Inputs
|
Written Options
|
$(425,770
)
|
$(425,770
)
|
$—
|
$—
|
*
|
See Portfolio of Investments for industry breakout.
|
ASSETS:
|
|
Investments, at value
|
$ 404,668,417
|
Cash
|
3,638,975
|
Receivables:
|
|
Dividends
|
429,492
|
Investment securities sold
|
33,099
|
Reclaims
|
2,860
|
Prepaid expenses
|
13,600
|
Total Assets
|
408,786,443
|
LIABILITIES:
|
|
Options contracts written, at value
|
425,770
|
Payables:
|
|
Investment advisory fees
|
334,609
|
Audit and tax fees
|
27,136
|
Legal fees
|
23,559
|
Administrative fees
|
16,207
|
Shareholder reporting fees
|
13,154
|
Custodian fees
|
12,801
|
Transfer agent fees
|
1,586
|
Financial reporting fees
|
745
|
Trustees’ fees and expenses
|
429
|
Other liabilities
|
2,107
|
Total Liabilities
|
858,103
|
NET ASSETS
|
$407,928,340
|
NET ASSETS consist of:
|
|
Paid-in capital
|
$ 263,987,224
|
Par value
|
199,881
|
Accumulated distributable earnings (loss)
|
143,741,235
|
NET ASSETS
|
$407,928,340
|
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)
|
$20.41
|
Number of
|
|
Investments, at cost
|
$273,532,941
|
Premiums received on options contracts written
|
$653,161
|
INVESTMENT INCOME:
|
|
|
Dividends
|
$ 3,551,043
|
|
Interest
|
71,787
|
|
Foreign withholding tax
|
(6,876
)
|
|
Total investment income
|
3,615,954
|
|
EXPENSES:
|
|
|
Investment advisory fees
|
1,948,468
|
|
Administrative fees
|
85,680
|
|
Shareholder reporting fees
|
54,211
|
|
Legal fees
|
34,188
|
|
Audit and tax fees
|
27,243
|
|
Trustees’ fees and expenses
|
26,718
|
|
Custodian fees
|
13,371
|
|
Listing expense
|
12,228
|
|
Transfer agent fees
|
9,197
|
|
Financial reporting fees
|
4,599
|
|
Other
|
7,313
|
|
Total expenses
|
2,223,216
|
|
NET INVESTMENT INCOME (LOSS)
|
1,392,738
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS):
|
|
|
Net realized gain (loss) on:
|
|
|
Investments
|
24,153,266
|
|
Written options contracts
|
(186,763
)
|
|
Foreign currency transactions
|
(202
)
|
|
Net realized gain (loss)
|
23,966,301
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
Investments
|
21,013,367
|
|
Written options contracts
|
279,075
|
|
Foreign currency translation
|
34
|
|
Net change in unrealized appreciation (depreciation)
|
21,292,476
|
|
NET REALIZED AND UNREALIZED GAIN (LOSS)
|
45,258,777
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
|
$ 46,651,515
|
|
Six Months
Ended
6/30/2024
(Unaudited)
|
Year
Ended
12/31/2023
|
OPERATIONS:
|
|
|
Net investment income (loss)
|
$ 1,392,738
|
$ 2,911,637
|
Net realized gain (loss)
|
23,966,301
|
24,924,216
|
Net change in unrealized appreciation (depreciation)
|
21,292,476
|
38,399,652
|
Net increase (decrease) in net assets resulting from operations
|
46,651,515
|
66,235,505
|
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
|
|
Investment operations
|
(13,292,077
)
|
(25,184,987
)
|
Total increase (decrease) in net assets
|
33,359,438
|
41,050,518
|
NET ASSETS:
|
|
|
Beginning of period
|
374,568,902
|
333,518,384
|
End of period
|
$ 407,928,340
|
$ 374,568,902
|
COMMON SHARES:
|
|
|
Common Shares at end of period
|
19,988,085
|
19,988,085
|
|
Six Months
Ended
6/30/2024
(Unaudited)
|
Year Ended December 31,
|
||||
2023
|
2022
|
2021
|
2020
|
2019
|
||
Net asset value, beginning of period
|
$ 18.74
|
$ 16.69
|
$ 21.38
|
$ 18.29
|
$ 16.92
|
$ 13.89
|
Income from investment operations:
|
|
|
|
|
|
|
Net investment income (loss)
|
0.07
(a)
|
0.15
(a)
|
0.15
|
0.07
|
0.12
|
0.17
|
Net realized and unrealized gain (loss)
|
2.27
|
3.16
|
(3.58
)
|
4.28
(b)
|
2.39
|
4.00
|
Total from investment operations
|
2.34
|
3.31
|
(3.43
)
|
4.35
|
2.51
|
4.17
|
Distributions paid to shareholders from:
|
|
|
|
|
|
|
Net investment income
|
(0.67
)
|
(0.29
)
|
—
|
(0.18
)
|
(0.08
)
|
(0.14
)
|
Net realized gain
|
—
|
(0.97
)
|
(1.26
)
|
(1.08
)
|
(1.06
)
|
(1.00
)
|
Total distributions paid to Common
Shareholders
|
(0.67
)
|
(1.26
)
|
(1.26
)
|
(1.26
)
|
(1.14
)
|
(1.14
)
|
Net asset value, end of period
|
$
|
$18.74
|
$16.69
|
$21.38
|
$18.29
|
$16.92
|
Market value, end of period
|
$
|
$18.27
|
$15.76
|
$21.29
|
$17.62
|
$17.25
|
Total return based on net asset value (c)
|
12.69
%
|
20.61
%
|
(15.84
)%
|
24.38
% (b)
|
16.84
%
|
30.78
%
|
Total return based on market value (c)
|
12.82
%
|
24.53
%
|
(20.19
)%
|
28.56
%
|
10.41
%
|
43.34
%
|
Ratios to average net assets/supplemental
data:
|
|
|
|
|
|
|
Net assets, end of period (in 000’s)
|
$ 407,928
|
$ 374,569
|
$ 333,518
|
$ 427,233
|
$ 365,432
|
$ 338,198
|
Ratio of total expenses to average net assets
|
1.14
% (d)
|
1.16
%
|
1.13
%
|
1.12
%
|
1.15
%
|
1.14
%
|
Ratio of net investment income (loss) to
average net assets
|
0.71
% (d)
|
0.82
%
|
0.81
%
|
0.39
%
|
0.77
%
|
1.08
%
|
Portfolio turnover rate
|
13
%
|
26
%
|
21
%
|
14
%
|
20
%
|
37
%
|
(a)
|
Based on average shares outstanding.
|
(b)
|
The Fund received a reimbursement from Chartwell in the amount of $17,250, which represents
less than $0.01 per share. Since
the Fund was reimbursed, there was no effect on the Fund’s total return.
|
(c)
|
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.
|
(d)
|
Annualized.
|
Distributions paid from:
|
|
Ordinary income
|
$7,101,632
|
Capital gains
|
18,083,355
|
Return of capital
|
—
|
Undistributed ordinary income
|
$—
|
Undistributed capital gains
|
—
|
Total undistributed earnings
|
—
|
Accumulated capital and other losses
|
5,503,943
|
Net unrealized appreciation (depreciation)
|
104,877,854
|
Total accumulated earnings (losses)
|
110,381,797
|
Other
|
—
|
Paid-in capital
|
264,187,105
|
Total net assets
|
$374,568,902
|
Tax Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
(Depreciation)
|
Net Unrealized
Appreciation
(Depreciation)
|
$272,879,780
|
$146,823,779
|
$(15,460,912)
|
$131,362,867
|
The Bank of New York Mellon (“BNY”) serves as the Fund’s administrator, fund accountant, and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BNY is responsible for providing certain administrative and accounting services to the Fund, including maintaining the Fund’s books of account, records of the Fund’s securities transactions, and certain other books and records. As custodian, BNY is responsible for custody of the Fund’s assets. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
|
|
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
|
$ 425,770
|
Statement of Operations Location
|
|
Equity Risk Exposure
|
|
Net realized gain (loss) on written options contracts
|
$(186,763
)
|
Net change in unrealized appreciation (depreciation) on written options contracts
|
279,075
|
FUND ACCOUNTANT, AND
CUSTODIAN
PUBLIC ACCOUNTING FIRM
(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 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.
Not applicable.
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 has materially affected, or is 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-l under the 1940 Act, dated March 24, 2010. (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 Enhanced Equity Income Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | September 9, 2024 |
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: | September 9, 2024 |
By (Signature and Title)* | /s/ Derek D. Maltbie | |
Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | September 9, 2024 |
* Print the name and title of each signing officer under his or her signature.