First Trust Announces Shareholder Approvals Of The Mergers Of The Target Funds Into FT Energy Income Partners Enhanced Income ETF
Portfolio Pulse from Benzinga Newsdesk
First Trust Advisors L.P. announced shareholder approvals for the mergers of First Trust Energy Income and Growth Fund (FEN), First Trust MLP and Energy Income Fund (FEI), First Trust New Opportunities MLP & Energy Fund (FPL), and First Trust Energy Infrastructure Fund (FIF) into the newly formed FT Energy Income Partners Enhanced Income ETF (EIPI). The mergers aim to reduce NAV discounts, offer favorable tax attributes, potentially increase distributions, and lower expense ratios. The mergers, expected to close by end of April 2024, are seen as tax-free reorganizations. NAV adjustments for FEN, FEI, and FPL were also announced.

February 29, 2024 | 9:39 pm
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POSITIVE IMPACT
FEI approved for merger into EIPI, with an estimated NAV increase of approximately $1,357,800 or $0.030 per share. The merger aims for NAV benefits and tax advantages.
The anticipated NAV increase for FEI as part of its merger into EIPI suggests a positive financial adjustment, likely leading to a favorable investor response and a potential short-term price increase.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
FEN approved for merger into EIPI, expected to maintain its NAV without change. The merger aims for NAV benefits and tax advantages.
The merger into EIPI is expected to maintain FEN's NAV, potentially reducing the discount to NAV and offering favorable tax attributes. This could attract more investors, positively impacting the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
FIF approved for merger into EIPI, aiming for NAV benefits, favorable tax attributes, and lower expenses. The merger is expected to close by end of April 2024.
FIF's merger into EIPI is expected to offer similar benefits as the other funds, including potential NAV improvements and tax advantages. This could positively influence investor sentiment and the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
FPL approved for merger into EIPI, with an estimated NAV decrease of approximately $1,943,747 or $0.083 per share. The merger aims for NAV benefits and tax advantages.
The expected NAV decrease for FPL as it merges into EIPI could initially concern investors, potentially leading to a short-term negative impact on its stock price. However, the overall merger benefits may offset this impact over time.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90