First Trust Enhanced Equity Income Fund Issues Notice Regarding December 2024 Distribution

WHEATON, Ill.--(BUSINESS WIRE)--December 31, 2024-- 

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 December 31, 2024, to shareholders of record as of December 20, 2024, with an ex-dividend date of December 20, 2024. 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 December 31, 2024, 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  12/31/2024      $0.35000      $0.03241  $0.11910  $0.19849     -      9.26%  34.03%  56.71%      -           6.35%        13.62% 
 
 
                                                                                                                                             Cumulative 
                                      Total                                                                                    Cumulative      Fiscal 
                                                                                                                               Fiscal YTD 
                                    Cumulative      Cumulative Distributions Fiscal YTD     Cumulative Distributions 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  12/31/2024      $1.36500      $0.12640  $0.46451  $0.77409     -      9.26%  34.03%  56.71%      -           6.20%        23.75% 
 
 
 
(1) Includes the most recent quarterly distribution paid on December 31, 2024. 
(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 November 30, 2024. (4) Total Returns are through 
November 30, 2024. 
 

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 $264 billion as of November 30, 2024 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 November 30, 2024, Chartwell had approximately $12.5 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 investment, or shares of a fund in general may fall in value. Investments held by the Fund are subject to market fluctuations caused by real or perceived adverse economic conditions, political events, regulatory factors 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, market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund and its investments.

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. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates; however, the Federal Reserve has recently lowered interest rates and may continue to do so. Recent and potential future bank failures and challenges in commercial real estate markets could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also heighten market volatility and reduce liquidity. The change in administration resulting from the 2024 United States national elections could result in significant impacts to the national and international political and financial landscape, which could affect, among other things, inflation and the securities markets generally. Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Iran, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain fund investments as well as fund performance and liquidity. A public health crisis, and the ensuing policies enacted by governments and central banks in response, could cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

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.

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