First Trust Advisors has launched the First Trust Energy Infrastructure Fund, a closed-end fund, which seeks a high level of total return with an emphasis on current distributions paid to shareholders. The fund commenced trading on 28 September, 2011 on the NYSE under the ticker symbol "FIF."
The fund will initially raise approximately USD345 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 USD395 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.