UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-22528
First Trust Energy Infrastructure Fund
(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: November 30
Date of reporting period: February 28, 2018
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.
Shares/ Units | Description | Value | ||
COMMON STOCKS (a) – 94.5% | ||||
Electric Utilities – 29.6% | ||||
90,900 | Alliant Energy Corp. | $3,513,285 | ||
161,500 | American Electric Power Co., Inc. (b) | 10,591,170 | ||
113,000 | Duke Energy Corp. (b) | 8,513,420 | ||
23,900 | Edison International (b) | 1,448,101 | ||
259,900 | Emera, Inc. (CAD) | 8,387,203 | ||
17,500 | Eversource Energy | 997,500 | ||
342,200 | Exelon Corp. (b) | 12,675,088 | ||
184,400 | Fortis, Inc. (CAD) | 6,025,477 | ||
213,300 | Hydro One Ltd. (CAD) (c) | 3,415,925 | ||
54,500 | IDACORP, Inc. | 4,417,225 | ||
69,200 | NextEra Energy, Inc. (b) | 10,528,780 | ||
67,000 | PPL Corp. | 1,919,550 | ||
201,300 | Southern (The) Co. (b) | 8,667,978 | ||
127,000 | Xcel Energy, Inc. | 5,496,560 | ||
86,597,262 | ||||
Gas Utilities – 5.7% | ||||
40,600 | Atmos Energy Corp. | 3,267,894 | ||
41,310 | Chesapeake Utilities Corp. | 2,753,311 | ||
107,000 | New Jersey Resources Corp. | 4,076,700 | ||
150,018 | UGI Corp. (b) | 6,464,276 | ||
16,562,181 | ||||
Multi-Utilities – 15.9% | ||||
157,200 | ATCO, Ltd., Class I (CAD) | 5,174,664 | ||
236,700 | Canadian Utilities Ltd., Class A (CAD) | 6,251,374 | ||
150,800 | CMS Energy Corp. | 6,401,460 | ||
162,592 | National Grid PLC, ADR (b) | 8,388,121 | ||
170,000 | NiSource, Inc. (b) | 3,932,100 | ||
118,500 | Public Service Enterprise Group, Inc. | 5,738,955 | ||
39,400 | Sempra Energy (b) | 4,293,812 | ||
107,700 | WEC Energy Group, Inc. | 6,453,384 | ||
46,633,870 | ||||
Oil, Gas & Consumable Fuels – 43.0% | ||||
2,384,047 | Enbridge Energy Management, LLC (d) | 28,084,074 | ||
625,200 | Enbridge Income Fund Holdings, Inc. (CAD) | 13,120,820 | ||
218,000 | Enbridge, Inc. (b) | 6,936,760 | ||
197,700 | Inter Pipeline, Ltd. (CAD) | 3,437,256 | ||
172,100 | Keyera Corp. (CAD) | 4,385,653 | ||
946,075 | Kinder Morgan, Inc. (b) | 15,326,415 | ||
226,053 | ONEOK, Inc. (b) | 12,733,565 | ||
70,600 | Targa Resources Corp. (b) | 3,152,290 | ||
475,170 | TransCanada Corp. | 20,536,847 | ||
658,600 | Williams (The) Cos., Inc. (b) | 18,282,736 | ||
125,996,416 | ||||
Water Utilities – 0.3% | ||||
10,900 | American Water Works Co., Inc. | 865,024 | ||
Total Common Stocks | 276,654,753 | |||
(Cost $300,802,205) | ||||
MASTER LIMITED PARTNERSHIPS (a) – 34.3% | ||||
Chemicals – 0.2% | ||||
22,000 | Westlake Chemical Partners, L.P. | 496,100 |
Shares/ Units | Description | Value | ||
MASTER LIMITED PARTNERSHIPS (a) (Continued) | ||||
Gas Utilities – 1.7% | ||||
122,152 | AmeriGas Partners, L.P. | $5,123,055 | ||
Independent Power and Renewable Electricity Producers – 4.6% | ||||
345,555 | NextEra Energy Partners, L.P. (e) | 13,559,578 | ||
Oil, Gas & Consumable Fuels – 27.8% | ||||
79,700 | Alliance Holdings GP, L.P. | 2,029,959 | ||
300,830 | Alliance Resource Partners, L.P. | 5,354,774 | ||
124,444 | BP Midstream Partners, L.P. | 2,371,903 | ||
60,000 | Buckeye Partners, L.P. (b) | 2,688,000 | ||
606,800 | Enterprise Products Partners, L.P. (b) | 15,424,856 | ||
205,900 | EQT Midstream Partners, L.P. | 12,666,968 | ||
191,976 | Holly Energy Partners, L.P. | 5,644,094 | ||
135,300 | Magellan Midstream Partners, L.P. (b) | 8,450,838 | ||
103,600 | Phillips 66 Partners, L.P. | 5,090,904 | ||
79,000 | Shell Midstream Partners, L.P. | 1,899,950 | ||
127,621 | Spectra Energy Partners, L.P. | 5,014,229 | ||
255,613 | TC PipeLines, L.P. | 12,558,267 | ||
56,002 | TransMontaigne Partners, L.P. | 1,999,271 | ||
5,000 | Williams Partners, L.P. | 181,200 | ||
81,375,213 | ||||
Total Master Limited Partnerships | 100,553,946 | |||
(Cost $92,057,813) | ||||
REAL ESTATE INVESTMENT TRUSTS (a) – 1.5% | ||||
Equity Real Estate Investment Trusts – 1.5% | ||||
49,101 | CorEnergy Infrastructure Trust, Inc. | 1,761,253 | ||
142,050 | InfraREIT, Inc. | 2,647,812 | ||
Total Real Estate Investment Trusts | 4,409,065 | |||
(Cost $4,641,045) | ||||
Total Investments – 130.3%(f) | 381,617,764 | |||
(Cost $397,501,063) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN – (0.2)% | ||||||||||
1,600 | American Electric Power Co., Inc. | $10,492,800 | $70.00 | Apr 2018 | (72,000) | |||||
600 | Buckeye Partners L.P. | 2,688,000 | 50.00 | May 2018 | (30,000) | |||||
100 | Duke Energy Corp. | 753,400 | 80.00 | Apr 2018 | (6,000) | |||||
1,000 | Duke Energy Corp. (g) | 7,534,000 | 92.50 | Apr 2018 | (4,000) | |||||
200 | Edison International | 1,211,800 | 65.00 | Mar 2018 | (1,600) | |||||
2,100 | Enbridge, Inc. | 6,682,200 | 37.50 | Jul 2018 | (42,000) | |||||
200 | Enterprise Products Partners L.P. | 508,400 | 28.00 | Apr 2018 | (2,000) | |||||
2,498 | Enterprise Products Partners L.P. (g) | 6,349,916 | 31.00 | Jun 2018 | (12,490) | |||||
1,700 | Exelon Corp. | 6,296,800 | 39.00 | Apr 2018 | (78,200) | |||||
900 | Exelon Corp. | 3,333,600 | 40.00 | Apr 2018 | (18,000) | |||||
800 | Exelon Corp. (g) | 2,963,200 | 43.00 | Apr 2018 | (2,400) | |||||
3,699 | Kinder Morgan, Inc. (g) | 5,992,380 | 18.00 | Mar 2018 | (11,097) | |||||
3,000 | Kinder Morgan, Inc. (g) | 4,860,000 | 20.00 | Mar 2018 | (3,000) | |||||
1,000 | Magellan Midstream Partners, L.P. (g) | 6,246,000 | 75.00 | Mar 2018 | (5,000) | |||||
1,600 | National Grid PLC | 8,254,400 | 65.00 | Jun 2018 | (8,000) | |||||
100 | NextEra Energy, Inc. | 1,521,500 | 155.00 | Mar 2018 | (14,000) | |||||
500 | NextEra Energy, Inc. | 7,607,500 | 165.00 | Mar 2018 | (2,500) | |||||
1,700 | NiSource, Inc. | 3,932,100 | 25.00 | Apr 2018 | (17,000) | |||||
800 | ONEOK, Inc. | 4,506,400 | 62.50 | Jul 2018 | (128,000) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN (Continued) | ||||||||||
300 | Sempra Energy (g) | $3,269,400 | $115.00 | Jul 2018 | $(78,000) | |||||
2,000 | Southern (The) Co. | 8,612,000 | 46.00 | May 2018 | (84,000) | |||||
700 | Targa Resources Corp. (g) | 3,125,500 | 55.00 | Mar 2018 | (700) | |||||
1,500 | UGI Corp. (g) | 6,463,500 | 50.00 | Apr 2018 | (45,000) | |||||
2,900 | Williams (The) Cos., Inc. | 8,050,400 | 31.00 | Apr 2018 | (29,000) | |||||
3,600 | Williams (The) Cos., Inc. (g) | 9,993,600 | 35.00 | Apr 2018 | (25,200) | |||||
Total Call Options Written | (719,187) | |||||||||
(Premiums received $1,963,562) |
Outstanding Loans – (36.7)% |
(107,500,000) | ||
Net Other Assets and Liabilities – 6.6% |
19,502,977 | ||
Net Assets – 100.0% |
$292,901,554 |
Counterparty | Floating Rate (1) | Expiration Date | Notional Amount | Fixed Rate (1) | Unrealized Appreciation (Depreciation)/ Value | |||||
Bank of Nova Scotia | 1 month LIBOR | 10/08/20 | $36,475,000 | 2.121% | $281,859 | |||||
Bank of Nova Scotia | 1 month LIBOR | 09/03/24 | 36,475,000 | 2.367% | 644,920 | |||||
$72,950,000 | $926,779 |
(1) | The Fund pays the fixed rate and receives the floating rate. The floating rate on February 28, 2018 was 1.579% and 1.579%, respectively. |
(a) | All of these securities are available to serve as collateral for the outstanding loans. |
(b) | All or a portion of these securities’ positions represent covers for outstanding options written. |
(c) | This security is restricted in the U.S. and cannot be offered for public sale without first being registered under the Securities Act of 1933, as amended. This security is not restricted on the foreign exchange where it trades freely without any additional registration. As such, it does not require the additional disclosure required of restricted securities. |
(d) | Non-income producing security that makes payment-in-kind (“PIK”) distributions. For the fiscal year-to-date period (December 1, 2017 through February 28, 2018), the Fund received 58,568 PIK shares of Enbridge Energy Management, LLC. |
(e) | NextEra Energy Partners, L.P. is taxed as a “C” corporation for federal income tax purposes. |
(f) | Aggregate cost for financial reporting purposes approximates the aggregate cost for federal income tax purposes. As of February 28, 2018, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $19,808,575 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $33,520,720. The net unrealized depreciation was $13,712,145. The amounts presented are inclusive of derivative contracts. |
(g) | This investment is fair valued by the Advisor’s Pricing Committee in accordance with procedures adopted by the Fund’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940, as amended. At February 28, 2018, investments noted as such are valued at $(186,887) or (0.1)% of net assets. |
ADR | American Depositary Receipt |
CAD | Canadian Dollar - Security is denominated in Canadian Dollars and is translated into U.S. Dollars based upon the current exchange rate. |
ASSETS TABLE | ||||
Total Value at 2/28/2018 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Common Stocks* | $ 276,654,753 | $ 276,654,753 | $ — | $ — |
Master Limited Partnerships* | 100,553,946 | 100,553,946 | — | — |
Real Estate Investment Trusts* | 4,409,065 | 4,409,065 | — | — |
Total Investments | 381,617,764 | 381,617,764 | — | — |
Interest Rate Swap Agreements | 926,779 | — | 926,779 | — |
Total | $ 382,544,543 | $ 381,617,764 | $ 926,779 | $— |
LIABILITIES TABLE | ||||
Total Value at 2/28/2018 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Call Options Written | $ (719,187) | $ (532,300) | $ (186,887) | $ — |
* | See Portfolio of Investments for industry breakout. |
1) | the type of security; |
2) | the size of the holding; |
3) | the initial cost of the security; |
4) | transactions in comparable securities; |
5) | price quotes from dealers and/or third-party pricing services; |
6) | relationships among various securities; |
7) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
8) | an analysis of the issuer’s financial statements; and |
9) | the existence of merger proposals or tender offers that might affect the value of the security. |
1) | the value of similar foreign securities traded on other foreign markets; |
2) | ADR trading of similar securities; |
3) | closed-end fund trading of similar securities; |
4) | foreign currency exchange activity; |
5) | the trading prices of financial products that are tied to baskets of foreign securities; |
6) | factors relating to the event that precipitated the pricing problem; |
7) | whether the event is likely to recur; and |
8) | whether the effects of the event are isolated or whether they affect entire markets, countries or regions. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Item 2. 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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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 Energy Infrastructure Fund |
By (Signature and Title)* | /s/ James M. Dykas | |||
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | April 25, 2018 |
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: | April 25, 2018 |
By (Signature and Title)* | /s/ Donald P. Swade | |||
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | April 25, 2018 |
* Print the name and title of each signing officer under his or her signature.