Eagle Growth & Income Opportunities Fund Announces Changes in Its Investment Strategy, Declares Monthly Distribution of $0.07...
November 10 2017 - 6:03PM
Business Wire
Eagle Growth and Income Opportunities Fund (the “Fund”)
(NYSE:EGIF) today announced that the Board of Trustees of
EGIF, at the recommendation of the Fund’s management team, approved
the following changes to the Fund’s investment strategy:
- Increase the maximum portion of the
Fund’s portfolio that may be invested in equity securities, which
may include common and preferred stocks, convertible securities,
warrants, depository receipts, exchange -traded funds (“ETFs”) that
do not primarily invest in debt instruments, MLPs and real estate
investment trusts (“REITs”), from 75% to 85% of its Managed
Assets1;
- Decrease the minimum portion of the
Fund’s portfolio that may be invested in debt securities, which may
include below investment grade securities, notes, bonds,
convertible bonds, bank loans, mortgage-backed securities, ETFs
that primarily invest in debt instruments and other types of debt
instruments, from 25% to 15% of its Managed Assets;
- Increase the maximum portion of the
Fund’s portfolio that may be invested in preferred equity
securities from 25% to 40%;
- Increase the amount of leverage the
Fund may use for investment purposes from 25% of Managed Assets to
33 1/3%, the maximum permitted by the Investment Company Act of
1940, as amended; and
- Suspend the Fund’s strategy of writing
(selling) covered options on broad-based indices of
securities.
Fund management believes that these changes will allow for the
most effective management of the Fund assets, consistent with the
Fund’s investment objective, in the current market environment.
The Fund today also announced the declaration of its monthly
distribution of $0.073 per common share, payable November 30, 2017.
Based on the Fund’s current share price of $16.24 as of its close
on November 10, 2017, the distribution represents an annualized
yield of 5.39%. The distribution level announced today reflects the
alignment of the Fund’s distribution rate with net investment
income and realized gains anticipated in the current market
environment under the modified investment strategy.
Information regarding the distribution rate is included for
informational purposes only and is not necessarily indicative of
future results, the achievement of which cannot be assured. The
distribution rate should not be considered the yield or total
return on an investment in the Fund.
The following dates apply to this distribution:
Ex-Dividend Date: November 17, 2017
Record Date: November 20, 2017 Payable Date: November 30, 2017
A portion of each distribution may be treated as paid from
sources other than undistributed net investment income, including
but not limited to short-term capital gain, long-term capital gain
or return of capital. As required by Section 19(a) of the
Investment Company Act of 1940, a notice will be distributed to the
Fund’s stockholders in the event that a portion of a monthly
distribution is derived from sources other than undistributed net
investment income. In January or February of each year, investors
will be sent a Form 1099-DIV for the previous calendar year that
will define how to report these distributions for federal income
tax purposes.
Finally, the Fund today also announced that it will hold an
investor call on Wednesday, December 6, 2017 at 4:00 pm ET to
discuss its business outlook. James C. Camp and David Blount
Portfolio Co-Manager of Eagle Asset Management, Inc., the Fund’s
subadvisor, and Steven Baffico, CEO of Four Wood Capital Advisors
LLC, the Fund’s investment advisor, will host the call.
The conference call can be accessed by dialing 877-845-8992,
conference ID 5599529. A replay of the live broadcast will be
available by dialing 855-859-2056, conference ID 5599529 through
December 20, 2017 at 5:00 pm ET.
The Fund will post its September 30, 2017 quarterly fact sheet
to its website at http://fwcapitaladvisors.com/egif prior to the
call.
The investment return, price, yields, market value and net asset
value (NAV) of the Fund’s shares will fluctuate with market
conditions, and it is possible to lose money by investing in the
Fund. Closed-end funds frequently trade at a discount to NAV, which
may increase the investor’s risk of loss. There is no assurance
that the Fund will meet its investment objective.
Investment return and principal value will fluctuate. Past
performance is not a guarantee of future results.
Eagle Growth and Income Opportunities Fund
The Fund is a non-diversified, closed-end management investment
company that is advised by Four Wood Capital Advisors LLC, a
wholly-owned subsidiary of Four Wood Capital Partners LLC, and
subadvised by Eagle Asset Management, Inc. and Recon Capital
Partners. The Fund’s investment objective is to provide total
return through a combination of current income and capital
appreciation. There can be no assurance that the Fund will achieve
its investment objectives.
About Four Wood Capital Advisors LLC
Four Wood Capital Advisors LLC (“FWCA”) is the Fund’s investment
advisor and is registered with the U.S. Securities Exchange
Commission as an investment advisor. FWCA is a New York Limited
Liability Company formed in June 2012 to provide investment
management and advisory services to registered investment companies
and institutional investors. FWCA is a wholly owned subsidiary of
Four Wood Capital Partners LLC.
About Eagle Asset Management, Inc.
Eagle Asset Management, Inc. (“Eagle”) provides institutional
and individual investors with a broad array of equity and fixed
income products designed to meet long-term goals.
About Recon Capital Partners
Recon Capital Partners (“Recon Capital”) provides investment
solutions for institutional investors, financial professionals, and
individual investors. Recon Capital uses its investment expertise
and operational infrastructures to seek to deliver market-driven,
value-added products that meet the evolving needs of global
investors across multiple strategies including options,
alternatives and international markets.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements”, which relate to future events or our future
performance or financial condition. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our fillings with the Securities and Exchange Commission. Eagle
Growth and Income Opportunities Fund undertakes no duty to update
any forward-looking statements made herein.
Contact the Fund at 1.855.456.3927 or visit the Fund’s
website at http://fwcapitaladvisors.com /egif for additional
information.
1 Total assets of the Fund (including any assets
attributable to borrowings for investment purposes) minus the sum
of the Fund’s accrued liabilities (other than liabilities
representing borrowing for investment purposes.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171110005751/en/
Four Wood Capital Partners LLCStephanie Trell, 212-701-4500
Eagle Growth and Income ... (NYSE:EGIF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eagle Growth and Income ... (NYSE:EGIF)
Historical Stock Chart
From Jul 2023 to Jul 2024