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 811-21549
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First Trust Energy Income and Growth Fund
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(Exact name of registrant as specified in charter)
187 Danbury Road
Wilton, CT 06897
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(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
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
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Date of fiscal year end: November 30
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Date of reporting period: August 31, 2014
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 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. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2014 (UNAUDITED)
SHARES/
UNITS DESCRIPTION VALUE
--------------- ---------------------------------------------------------------------- ---------------
MASTER LIMITED PARTNERSHIPS - 111.4%
GAS UTILITIES - 5.4%
493,181 AmeriGas Partners, L.P. (a)........................................... $ 22,819,485
424,784 Suburban Propane Partners, L.P. (a)................................... 18,890,144
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41,709,629
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INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 1.0%
165,700 Brookfield Renewable Energy Partners, L.P. (CAD) ..................... 4,922,386
76,300 NextEra Energy Partners, L.P. (a) (b)................................. 2,678,893
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7,601,279
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OIL, GAS & CONSUMABLE FUELS - 105.0%
223,650 Access Midstream Partners, L.P. (a)................................... 14,391,877
248,401 Alliance Holdings GP, L.P. (a)........................................ 17,840,160
899,944 Alliance Resource Partners, L.P. (a).................................. 44,781,213
182,662 Buckeye Partners, L.P. (a)............................................ 14,430,298
902,850 El Paso Pipeline Partners, L.P. (a)................................... 37,522,446
1,255,921 Enbridge Energy Partners, L.P. (a).................................... 45,615,038
781,758 Energy Transfer Equity, L.P. (a)...................................... 47,413,623
552,544 Energy Transfer Partners, L.P. (a).................................... 31,743,653
2,123,306 Enterprise Products Partners, L.P. (a)................................ 86,269,923
223,500 EQT Midstream Partners, L.P. (a)...................................... 21,789,015
50,000 Hoegh LNG Partners L.P. (a) (b)....................................... 1,294,500
604,448 Holly Energy Partners, L.P. (a)....................................... 21,935,418
497,571 Kinder Morgan Energy Partners, L.P. (a)............................... 47,955,893
1,139,654 Magellan Midstream Partners, L.P. (a)................................. 95,651,160
254,000 MPLX, L.P. (a)........................................................ 15,494,000
183,200 Natural Resource Partners, L.P. (a)................................... 2,909,216
303,560 NGL Energy Partners, L.P. (a)......................................... 12,925,585
125,646 NuStar Energy, L.P. (a)............................................... 8,303,944
206,405 NuStar GP Holdings, LLC (a)........................................... 8,885,735
136,000 Oiltanking Partners, L.P. (a)......................................... 6,676,240
635,740 ONEOK Partners, L.P. (a).............................................. 37,782,028
30,300 Phillips 66 Partners, L.P. (a)........................................ 2,242,200
988,382 Plains All American Pipeline, L.P. (a)................................ 59,233,733
567,084 Spectra Energy Partners, L.P. (a)..................................... 32,318,117
397,927 TC Pipelines, L.P. (a)................................................ 23,326,481
716,909 Teekay LNG Partners, L.P. (a)......................................... 31,113,851
199,526 TransMontaigne Partners, L.P. (a)..................................... 8,779,144
551,155 Williams Partners, L.P. (a)........................................... 29,216,727
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807,841,218
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TOTAL MASTER LIMITED PARTNERSHIPS .................................... 857,152,126
(Cost $348,042,449) ---------------
COMMON STOCKS - 49.7%
ELECTRIC UTILITIES - 8.2%
102,100 Emera, Inc. (CAD) .................................................... 3,228,362
661,200 ITC Holdings Corp. (a)................................................ 24,695,820
100,000 NextEra Energy, Inc. ................................................. 9,845,000
175,000 Northeast Utilities .................................................. 8,030,750
See Notes to Quarterly Portfolio of Investments
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2014 (UNAUDITED)
SHARES/
UNITS DESCRIPTION VALUE
--------------- ---------------------------------------------------------------------- ---------------
COMMON STOCKS (CONTINUED)
ELECTRIC UTILITIES (CONTINUED)
257,600 NRG Yield, Inc., Class A (a).......................................... $ 14,010,864
75,000 Southern (The) Co. ................................................... 3,330,000
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63,140,796
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GAS UTILITIES - 4.3%
73,300 Atmos Energy Corp. (a)................................................ 3,706,048
137,300 Laclede Group, Inc. (a)............................................... 6,789,485
362,323 Questar Corp. ........................................................ 8,518,214
50,000 South Jersey Industries, Inc. (a)..................................... 2,897,500
213,030 UGI Corp. ............................................................ 11,286,329
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33,197,576
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INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS - 0.5%
125,000 Pattern Energy Group, Inc. (a)........................................ 4,029,375
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MULTI-UTILITIES - 7.0%
246,743 Dominion Resources, Inc. ............................................. 17,326,293
15,000 National Grid PLC, ADR ............................................... 1,121,100
485,700 NiSource, Inc. ....................................................... 19,267,719
125,000 Public Service Enterprise Group, Inc. ................................ 4,673,750
50,000 Sempra Energy ........................................................ 5,298,500
140,000 Wisconsin Energy Corp. ............................................... 6,346,200
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54,033,562
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OIL, GAS & CONSUMABLE FUELS - 29.2%
295,747 Enbridge Energy Management, LLC (a) (c)............................... 10,593,670
251,700 Enbridge Income Fund Holdings, Inc. (CAD) ............................ 7,481,784
116,930 Enbridge, Inc. ....................................................... 5,828,961
200,000 Inter Pipeline, Ltd. (CAD) ........................................... 6,673,411
177,480 Keyera Corp. (CAD) ................................................... 15,614,584
666,475 Kinder Morgan Management, LLC (a) (c)................................. 65,127,937
552,600 Kinder Morgan, Inc. .................................................. 22,247,676
299,000 Pembina Pipeline Corp. (CAD) ......................................... 13,741,405
328,250 Spectra Energy Corp. ................................................. 13,674,895
365,991 TransCanada Corp. .................................................... 19,682,996
733,158 Williams (The) Cos., Inc. ............................................ 43,578,912
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224,246,231
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REAL ESTATE INVESTMENT TRUSTS - 0.5%
422,512 CorEnergy Infrastructure Trust ....................................... 3,380,096
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TOTAL COMMON STOCKS .................................................. 382,027,636
(Cost $258,653,205) ---------------
TOTAL INVESTMENTS - 161.1% ........................................... 1,239,179,762
(Cost $606,695,654) (d) ---------------
See Notes to Quarterly Portfolio of Investments
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2014 (UNAUDITED)
NUMBER OF
CONTRACTS DESCRIPTION VALUE
--------------- ---------------------------------------------------------------------- ---------------
CALL OPTIONS WRITTEN - (0.9%)
Dominion Resources, Inc. Calls
2,200 @ $72.50 due October 2014............................................. $ (77,000)
200 @ 75.00 due January 2015............................................. (12,000)
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(89,000)
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Enbridge, Inc. Calls
600 @ 50.00 due September 2014........................................... (34,800)
500 @ 50.00 due October 2014............................................. (55,000)
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(89,800)
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Kinder Morgan Energy Partners, L.P. Call
400 @ 82.50 due September 2014........................................... (556,000)
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Kinder Morgan, Inc. Calls
900 @ 35.00 due September 2014........................................... (465,750)
1,000 @ 42.50 due March 2015............................................... (95,000)
1,500 @ 45.00 due March 2015............................................... (72,000)
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(632,750)
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National Grid PLC, ADR Call
23 @ 70.00 due September 2014........................................... (10,350)
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NextEra Energy, Inc. Calls
500 @ 110.00 due September 2014.......................................... (2,500)
500 @ 105.00 due December 2014........................................... (37,500)
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(40,000)
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NiSource, Inc. Calls
1,444 @ 41.00 due October 2014............................................. (72,200)
269 @ 42.00 due October 2014............................................. (2,690)
700 @ 41.00 due January 2015............................................. (70,000)
1,200 @ 42.00 due January 2015............................................. (108,000)
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(252,890)
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Northeast Utilities Calls
400 @ 50.00 due October 2014............................................. (4,000)
700 @ 50.00 due January 2015............................................. (14,000)
650 @ 50.00 due April 2015............................................... (24,375)
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(42,375)
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Public Service Enterprise Group, Inc. Call
1,200 @ 40.00 due March 2015............................................... (78,000)
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Questar Corp. Calls
1,500 @ 25.00 due October 2014............................................. (22,500)
800 @ 26.00 due October 2014............................................. (12,000)
600 @ 25.00 due January 2015............................................. (16,500)
700 @ 26.00 due January 2015............................................. (17,500)
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(68,500)
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2014 (UNAUDITED)
NUMBER OF
CONTRACTS DESCRIPTION VALUE
--------------- ---------------------------------------------------------------------- ---------------
CALL OPTIONS WRITTEN (CONTINUED)
Sempra Energy Call
500 @ $105.00 due October 2014............................................ $ (115,500)
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Southern (The) Co. Calls
450 @ 46.00 due November 2014............................................ (15,750)
200 @ 47.00 due November 2014............................................ (3,200)
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(18,950)
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Spectra Energy Corp. Calls
1,400 @ 44.00 due September 2014........................................... (14,000)
1,800 @ 45.00 due September 2014........................................... (18,000)
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(32,000)
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TransCanada Corp. Calls
2,560 @ 50.00 due November 2014............................................ (1,075,200)
1,000 @ 55.00 due November 2014............................................ (120,000)
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(1,195,200)
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UGI Corp. Calls
1,550 @ 50.00 due October 2014............................................. (496,000)
580 @ 55.00 due January 2015............................................. (43,500)
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(539,500)
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Williams (The) Cos., Inc. Calls
2,500 @ 62.50 due October 2014............................................. (85,000)
2,500 @ 50.00 due November 2014............................................ (2,293,750)
2,266 @ 62.50 due January 2015............................................. (310,442)
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(2,689,192)
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Wisconsin Energy Corp. Calls
500 @ 45.00 due October 2014............................................. (55,000)
500 @ 50.00 due October 2014............................................. (5,000)
397 @ 50.00 due January 2015............................................. (7,940)
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(67,940)
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TOTAL CALL OPTIONS WRITTEN ........................................... (6,517,947)
(Premiums received $2,260,497) ---------------
OUTSTANDING LOAN - (29.9%) ........................................... (230,000,000)
NET OTHER ASSETS AND LIABILITIES - (30.3%) ........................... (233,415,604)
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NET ASSETS - 100.0% .................................................. $ 769,246,211
===============
(a) All or a portion of this security serves as collateral on the outstanding
loan.
(b) Non-income producing security.
(c) Non-income producing security which pays in-kind ("PIK") distributions.
For the period ended August 31, 2014, the Fund received 15,466 PIK shares
of Enbridge Energy Management, LLC and 34,688 PIK shares of Kinder Morgan
Management, LLC.
(d) Aggregate cost for federal income tax purposes is $533,897,090. As of
August 31, 2014, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$705,904,861 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$622,189.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2014 (UNAUDITED)
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.
---------------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2014 is as follows (see Note 2A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
INVESTMENTS 8/31/2014 PRICES INPUTS INPUTS
----------------------------------------------- -------------- -------------- ------------- -------------
Master Limited Partnerships*................... $ 857,152,126 $ 857,152,126 $ -- $ --
Common Stocks*................................. 382,027,636 382,027,636 -- --
-------------- -------------- ------------- -------------
Total Investments.............................. $1,239,179,762 $1,239,179,762 $ -- $ --
============== ============== ============= =============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2014 PRICES INPUTS INPUTS
-------------- -------------- ------------- -------------
Call Options Written........................... $ (6,517,947) $ (6,517,947) $ -- $ --
============== ============== ============= =============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between Levels at August 31, 2014.
See Notes to Quarterly Portfolio of Investments
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
AUGUST 31, 2014 (UNAUDITED)
1. ORGANIZATION
First Trust Energy Income and Growth Fund (the "Fund") is a non-diversified,
closed-end management investment company organized as a Massachusetts business
trust on March 25, 2004 and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended (the "1940
Act"). The Fund trades under the ticker symbol FEN on the NYSE MKT.
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If
the NYSE closes early on a valuation day, the NAV is determined as of that time.
Foreign securities are priced using data reflecting the earlier closing of the
principal markets for those securities. The NAV per Common Share is calculated
by dividing the value of all assets of the Fund (including accrued interest and
dividends), less all liabilities (including accrued expenses, dividends declared
but unpaid, deferred income taxes and any borrowings of the Fund) by the total
number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in absence of market
value with respect to any portfolio securities, at fair value. Market value
prices represent last sale or official closing prices from a national or foreign
exchange (i.e. a regulated market) and are primarily obtained from third party
pricing services. Fair value prices represent any prices not considered market
value prices and are either obtained from a third party pricing service, or are
determined by First Trust Advisors L.P.'s (the "Advisor") Pricing Committee in
accordance with valuation procedures adopted by the Fund's Board of Trustees,
and in accordance with provisions of the 1940 Act. Investments valued by the
Advisor's Pricing Committee are footnoted as such in the footnotes to the
Portfolio of Investments. The Fund's investments are valued as follows:
Common stocks, master limited partnerships ("MLPs") and other equity
securities listed on any national or foreign exchange (excluding The
NASDAQ(R) Stock Market LLC ("NASDAQ") and the London Stock Exchange
Alternative Investment Market ("AIM")) are valued at the last sale price
on the exchange on which they are principally traded or, for NASDAQ and
AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official
closing price, as applicable, at the close of the securities exchange
representing the principal market for such securities.
Exchange-traded options contracts are valued at the closing price in the
market where such contracts are principally traded. If no closing price is
available, exchange-traded options contracts are fair valued at the mean
of their most recent bid and asked price, if available, and otherwise at
their closing bid price. Over-the-counter options contracts are fair
valued at the mean of their most recent bid and asked price, if available,
and otherwise at their closing bid price.
Securities traded in the over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
Swaps are fair valued utilizing quotations provided by a third party
pricing service or, if the pricing service does not provide a value, by
quotes provided by the selling dealer or financial institution.
Short-term investments that mature in less than 60 days when purchased are
fair valued at amortized cost.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or its
delegate at fair value. These securities generally include, but are not limited
to, restricted securities (securities which may not be publicly sold without
registration under the Securities Act of 1933, as amended) for which a pricing
service is unable to provide a market price; securities whose trading has been
formally suspended; a security whose market price is not available from a
pre-established pricing source; a security with respect to which an event has
occurred that is likely to materially affect the value of the security after the
market has closed but before the calculation of the Fund's NAV or make it
difficult or impossible to obtain a reliable market quotation; and a security
whose price, as provided by the pricing service, does not reflect the security's
"fair value." As a general principle, the current "fair value" of a security
would appear to be the amount which the owner might reasonably expect to receive
for the security upon its current sale. When fair value prices are used,
generally they will differ from market quotations or official closing prices on
the applicable exchanges. A variety of factors may be considered in determining
the fair value of such securities, including, but not limited to, the following:
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 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
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
AUGUST 31, 2014 (UNAUDITED)
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the securities in question are foreign securities, the following additional
information may be considered:
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.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o 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.
o 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.
o 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.
The inputs or methodology used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of August 31, 2014, is
included with the Fund's Portfolio of Investments.
B. OPTION CONTRACTS:
The Fund is subject to equity price risk in the normal course of pursuing its
investment objective and may write (sell) options to hedge against changes in
the value of equities. Also, the Fund seeks to generate additional income, in
the form of premiums received, from writing (selling) the options. The Fund may
write (sell) covered call or put options ("options") on all or a portion of the
common stock and MLPs held in the Fund's portfolio as determined to be
appropriate by Energy Income Partners, LLC ("EIP" or the "Sub-Advisor"). The
number of options the Fund can write (sell) is limited by the amount of common
stock and MLPs the Fund holds in its portfolio. The Fund will not write (sell)
"naked" or uncovered options. Options are marked-to-market daily and their value
will be affected by changes in the value and dividend rates of the underlying
equity securities, changes in interest rates, changes in the actual or perceived
volatility of the securities markets and the underlying equity securities and
the remaining time to the options' expiration. The value of options may also be
adversely affected if the market for the options becomes less liquid or trading
volume diminishes.
Options the Fund writes (sells) will either be exercised, expire or be cancelled
pursuant to a closing transaction. If the price of the underlying equity
security exceeds the option's exercise price, it is likely that the option
holder will exercise the option. If an option written (sold) by the Fund is
exercised, the Fund would be obligated to deliver the underlying equity security
to the option holder upon payment of the strike price. In this case, the option
premium received by the Fund will be added to the amount realized on the sale of
the underlying security for purposes of determining gain or loss. If the price
of the underlying equity security is less than the option's strike price, the
option will likely expire without being exercised. The option premium received
by the Fund will, in this case, be treated as short-term capital gain on the
expiration date of the option. The Fund may also elect to close out its position
in an option prior to its expiration by purchasing an option of the same series
as the option written (sold) by the Fund.
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
AUGUST 31, 2014 (UNAUDITED)
The options that the Fund writes (sells) give the option holder the right, but
not the obligation, to purchase a security from the Fund at the strike price on
or prior to the option's expiration date. The ability to successfully implement
the writing (selling) of covered call options depends on the ability of the
Sub-Advisor to predict pertinent market movements, which cannot be assured.
Thus, the use of options may require the Fund to sell portfolio securities at
inopportune times or for prices other than current market value, which may limit
the amount of appreciation the Fund can realize on an investment, or may cause
the Fund to hold a security that it might otherwise sell. As the writer (seller)
of a covered option, the Fund foregoes, during the option's life, the
opportunity to profit from increases in the market value of the security
covering the option above the sum of the premium and the strike price of the
option, but has retained the risk of loss should the price of the underlying
security decline. The writer (seller) of an option has no control over the time
when it may be required to fulfill its obligation as a writer (seller) of the
option. Once an option writer (seller) has received an exercise notice, it
cannot effect a closing purchase transaction in order to terminate its
obligation under the option and must deliver the underlying security to the
option holder at the exercise price.
Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum equity
price risk for purchased options is limited to the premium initially paid. In
addition, certain risks may arise upon entering into option contracts including
the risk that an illiquid secondary market will limit the Fund's ability to
close out an option contract prior to the expiration date and that a change in
the value of the option contract may not correlate exactly with changes in the
value of the securities hedged.
C. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
D. FOREIGN CURRENCY:
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investments and items of income and expense are
translated on the respective dates of such transactions.
3. DERIVATIVES TRANSACTIONS
Written option activity for the Fund for the fiscal year-to-date period
(December 1, 2013 through August 31, 2014) was as follows:
Number
of
Written Options Contracts Premiums
-----------------------------------------------------------------------------
Options outstanding at November 30, 2013... 35,777 $ 2,009,237
Options Written............................ 85,911 5,250,567
Options Expired............................ (32,897) (1,792,145)
Options Exercised.......................... (22,751) (1,664,589)
Options Closed............................. (28,851) (1,542,573)
--------- -------------
Options outstanding at August 31, 2014..... 37,189 $ 2,260,497
========= =============
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 Income and Growth Fund
--------------------------------------------------
By (Signature and Title)* /s/ Mark R. Bradley
----------------------------------------
Mark R. Bradley
President and Chief Executive Officer
(principal executive officer)
Date: October 24, 2014
-------------------
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/ Mark R. Bradley
----------------------------------------
Mark R. Bradley
President and Chief Executive Officer
(principal executive officer)
Date: October 24, 2014
-------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: October 24, 2014
-------------------
*Print the name and title of each signing officer under his or her signature.