WHEATON, Ill.--(BUSINESS WIRE)--March 31, 2026--
The Board of Trustees of First Trust Enhanced Equity Income Fund (the "Fund") $(FFA)$, CUSIP 337318109, previously approved a managed distribution policy for the Fund (the "Managed Distribution Plan") in reliance on exemptive relief received from the Securities and Exchange Commission which permits the Fund to make periodic distributions of long-term capital gains more frequently than otherwise permitted with respect to its common shares subject to certain conditions.
The Fund has declared a distribution payable on March 31, 2026, to shareholders of record as of March 20, 2026, with an ex-dividend date of March 20, 2026. This Notice is meant to provide you information about the sources of your Fund's distributions. You should not draw any conclusions about the Fund's investment performance from the amount of its distribution or from the terms of its Managed Distribution Plan.
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date for the Fund from the following sources: net investment income ("NII"); net realized short-term capital gains ("STCG"); net realized long-term capital gains ("LTCG"); and return of capital ("ROC"). These estimates are based upon information projected through March 31, 2026, are calculated based on a generally accepted accounting principles ("GAAP") basis and include the prior fiscal year-end undistributed net investment income. The amounts and sources of distributions are expressed per common share.
5 Yr. Avg.
Annualized Annual
Current Total
Dist. Rate as
Fund Fund Fiscal Total Current Current Distribution ($) Current Distribution (%) a Return
Ticker Cusip Year End Distribution NII STCG LTCG ROC (2) NII STCG LTCG ROC(2) % of NAV(3) on NAV(4)
------- --------- ---------- ---------------- -------- -------- ---- ----------- ----- ----- ---- ----------- ------------- ----------
FFA 337318109 12/31/2026 0.38750 $0.02042 $0.03646 - $0.33062 5.27% 9.41% - 85.32% 6.48% 12.42%
Cumulative
Total Cumulative Fiscal
Fiscal YTD
Cumulative Cumulative Distributions Fiscal YTD CumulativeDistributions Fiscal Distributions YTD Total
Fund Fund Fiscal Fiscal YTD ($) YTD (%) as Return
Ticker Cusip Year End Distributions(1) NII STCG LTCG ROC (2) NII STCG LTCG ROC(2) a % of NAV(3) on NAV(4)
------- --------- ---------- ---------------- -------- -------- ---- ----------- ----- ----- ---- ----------- ------------- ----------
FFA 337318109 12/31/2026 $0.38750 $0.02042 $0.03646 - $0.33062 5.27% 9.41% - 85.32% 1.62% 0.84%
(1) Includes the most recent quarterly distribution paid on March 31, 2026.
(2) The Fund estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of your distribution may be a
return of capital. A return of capital may occur, for example, when some or
all of the money that you invested in the Fund is paid back to you. A return
of capital distribution does not necessarily reflect the Fund's investment
performance and should not be confused with "yield" or "income." (3) Based on
Net Asset Value ("NAV") as of February 28, 2026. (4) Total Returns are through
February 28, 2026.
The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. You should not use this Notice as a substitute for your Form 1099-DIV.
First Trust Advisors L.P. ("FTA") is a federally registered investment advisor and serves as the Fund's investment advisor. FTA and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $329 billion as of February 28, 2026 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Chartwell Investment Partners, LLC ("Chartwell") serves as the Fund's investment sub-advisor and is an investment firm focusing on institutional, sub-advisory, and private client relationships. The firm is a research-based equity and fixed-income manager with a disciplined, team-oriented investment process. As of December 31, 2025, Chartwell had approximately $10.9 billion in assets under management.
Principal Risk Factors: Risks are inherent in all investing. Certain risks applicable to the Fund are identified below, which includes the risk that you could lose some or all of your investment in the Fund. The principal risks of investing in the Fund are spelled out in the Fund's annual shareholder reports. The order of the below risk factors does not indicate the significance of any particular risk factor. The Fund also files reports, proxy statements and other information that is available for review.
Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. There can be no assurance that the Fund's investment objectives will be achieved. The Fund may not be appropriate for all investors.
Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.
Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. For example, changes in governmental fiscal and regulatory policies, disruptions to banking and real estate markets, actual and threatened international armed conflicts and hostilities, and public health crises, among other significant events, could have a material impact on the value of the fund's investments.
Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.
The Fund may write (sell) covered call options on all or a portion of the equity securities held in the Fund's portfolio. The use of options may require the Fund to sell portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the Fund can realize on an investment, or may cause the Fund to hold an equity security that it might otherwise sell.
Premiums from writing (selling) call options and dividends and interest payments made by the securities in the Fund's portfolio can vary widely over time.
An adverse event affecting an issuer of equity securities, such as an unfavorable earnings report, may depress the value of a particular equity security held by the Fund. Also, the prices of equity securities are sensitive to general movements in the stock market and a drop in the stock market may depress the prices of equity securities to which the Fund has exposure. There is no guarantee that the issuers of the equity securities in which the Fund invests will declare dividends in the future or that if declared they will remain at current levels. There can be no assurance as to what portion of the distributions paid to the Fund's Common Shareholders will consist of tax-advantaged qualified dividend income.
Investment in non-U.S. securities is subject to the risk of currency fluctuations and to economic and political risks associated with such foreign countries.
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