First Trust Energy Income and Growth Fund (FEN) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21549

First Trust Energy Income and Growth Fund
(Exact name of registrant as specified in charter)

10 Westport Road Suite C101A
                  Wilton, CT 06897
(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: May 31, 2020

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. Reports to Stockholders.

The Report to Shareholders is attached herewith.

First Trust

Energy Income and Growth Fund (FEN)

Semi-Annual Report

For the Six Months Ended

May 31, 2020

 

 

 

Table of Contents

First Trust Energy Income and Growth Fund (FEN)

Semi-Annual Report

May 31, 2020

Shareholder Letter	1
At a Glance	2
Portfolio Commentary	3
Portfolio of Investments	5
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Statement of Cash Flows	11
Financial Highlights	12
Notes to Financial Statements	13
Additional Information	20

Caution Regarding Forward-Looking Statements

This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and/or Energy Income Partners, LLC (“EIP” or the “Sub-Advisor”) and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Trust Energy Income and Growth Fund (the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.

Performance and Risk Disclosure

There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund. See “Risk Considerations” in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund.

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and common share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.

The Advisor may also periodically provide additional information on Fund performance on the Fund’s web page at www.ftportfolios.com.

How to Read This Report

This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.

By reading the portfolio commentary by the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of relevant market benchmarks.

It is important to keep in mind that the opinions expressed by personnel of First Trust and EIP are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.

Shareholder Letter

First Trust Energy Income and Growth Fund (FEN)

Semi-Annual Letter from the Chairman and CEO

May 31, 2020

Dear Shareholders,

First Trust is pleased to provide you with the semi-annual report for the First Trust Energy Income and Growth Fund (the “Fund”), which contains detailed information about the Fund for the six months ended May 31, 2020.

Much has transpired since I last shared my thoughts with you. One event that has resonated with me more than any other in recent memory was the announcement by Federal Reserve (the “Fed”) Chairman Jerome Powell on June 10, 2020, that the Fed was not even “thinking about thinking about raising rates.” The Fed signaled its intention to leave short-term interest rates near zero until at least 2023. That level of conviction and commitment from the Fed is rare, and that gesture should be viewed as a positive for both the U.S. economy and securities markets, in my opinion. CEOs and executives can now fund any potential growth strategies they may have on the drawing board knowing that their cost of capital should remain near historically low levels for an extended period.

The Fed’s commitment to injecting massive amounts of stimulus into the economy is in response to the anticipated economic fallout from the coronavirus (“COVID-19”) pandemic. As of June 17, 2020, the estimate for real U.S. gross domestic product growth for the second quarter of 2020 was -45.5% (annualized), according to the Federal Reserve Bank of Atlanta. The U.S. economy contracted by an annualized 5.0% in the first quarter of 2020, according to the Bureau of Economic Analysis. The National Bureau of Economic Research, the organization that determines the beginning and end of business cycles in the U.S., reported on June 8, 2020, that U.S. economic activity peaked in February of this year. That marked the end of a 128-month economic expansion, the longest in this nation’s history. For all intents and purposes, the U.S. economy is now in a recession. The $64,000 question is as follows: “How long will it last?” While some pundits are predicting a V-shaped recovery, others are touting a U- or L-shaped recovery. Only time will tell. Brian Wesbury, Chief Economist at First Trust Advisors L.P., believes the economy is already sprouting green shoots, though he acknowledges it will take a few years to fully recover from the downturn.

So far in 2020, we have experienced a quick bear market in stocks followed by something that resembles a soft V-shaped recovery in stock prices, as measured by the S&P 500^® Index (the “Index”). A bear market is defined as a 20% or more decline in price from the most recent peak. From February 19, 2020 (peak) through March 23, 2020, the Index declined in price by 33.92%, according to Bloomberg. From March 23, 2020 through May 29, 2020, the Index posted a price gain of 36.06%, leaving it just 10.10% below its peak on February 19. While we find this upswing in the Index to be encouraging, there is a clear disconnect between the performance of the stock market and the turmoil in the economy. As strange as it may be − let us hope it continues.

The climate for income-oriented investors has been a bit of a mixed bag. The Fed has communicated that it intends to essentially backstop the bond market by buying bonds, including municipals, corporates and select corporate bond exchange-traded funds, in the secondary market. To date, the Fed’s commitment, which can be interpreted as an aggressive effort to mitigate risk, has been well-received by investors, in my opinion. Income-oriented investors that favor dividend-paying stocks have a different climate to navigate. The Financial Times reported that global dividend payouts, as measured by the Janus Henderson Global Dividend Index, could decline by as much as $490 billion in 2020 due to companies cutting or suspending their dividend distributions, according to Wealth Professional (Canada). Year-to-date through May 31, 2020, a total of 19 companies in the Index cut their dividend payouts and another 40 companies had suspended them, according to S&P Dow Jones Indices. There were no dividends suspended in 2019. Some companies may be pulling back on dividend distributions as a means of preserving liquidity over the near-term.

The bottom line is that it is too soon to know if the worst from the COVID-19 pandemic is behind us, in my opinion. U.S. businesses are in the process of reopening. Be prepared for a bumpy ride over the coming months and stay the course.

Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months.

Sincerely,

James A. Bowen

Chairman of the Board of Trustees

Chief Executive Officer of First Trust Advisors L.P.

Page 1

First Trust Energy Income and Growth Fund (FEN)

“AT A GLANCE”

As of May 31, 2020 (Unaudited)

Fund Statistics
Symbol on NYSE American	FEN
Common Share Price	$11.58
Common Share Net Asset Value (“NAV”)	$13.55
Premium (Discount) to NAV	(14.54)%
Net Assets Applicable to Common Shares	$271,248,959
Current Quarterly Distribution per Common Share(1)	$0.3000
Current Annualized Distribution per Common Share	$1.2000
Current Distribution Rate on Common Share Price(2)	10.36%
Current Distribution Rate on NAV(2)	8.86%

Common Share Price & NAV (weekly closing price)

 

Performance
			Average Annual Total Returns
	6 Months Ended 5/31/20	1 Year Ended 5/31/20	5 Years Ended 5/31/20	10 Years Ended 5/31/20	Inception (6/24/04) to 5/31/20
Fund Performance(3)
NAV	-26.33%	-27.87%	-8.78%	3.92%	5.85%
Market Value	-38.86%	-38.33%	-11.04%	1.52%	4.52%
Index Performance
S&P 500® Index	-2.10%	12.84%	9.85%	13.14%	8.58%
Bloomberg Barclays U.S. Credit Index of Corporate Bonds	3.23%	9.54%	4.79%	5.25%	5.35%
Alerian MLP Total Return Index	-24.26%	-34.74%	-12.92%	-0.06%	5.03%
Wells Fargo Midstream MLP Total Return Index	-25.05%	-30.51%	-11.61%	2.84%	6.84%

Industry Classification	% of Total Investments
Natural Gas Transmission	34.4%
Petroleum Product Transmission	32.1
Electric Power & Transmission	15.8
Crude Oil Transmission	14.9
Other	2.4
Propane	0.4
Total	100.0%

Top Ten Holdings	% of Total Investments
Enterprise Products Partners, L.P.	11.9%
TC PipeLines, L.P.	9.1
Magellan Midstream Partners, L.P.	7.9
TC Energy Corp.	7.1
ONEOK, Inc.	5.9
Holly Energy Partners, L.P.	5.6
Kinder Morgan, Inc.	5.0
Williams (The) Cos., Inc.	5.0
Energy Transfer, L.P.	4.4
Shell Midstream Partners, L.P.	3.9
Total	65.8%

⁽¹⁾ Most recent distribution paid or declared through 5/31/2020. Subject to change in the future.

⁽²⁾ Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of 5/31/2020. Subject to change in the future.

⁽³⁾ Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results.

Page 2

Portfolio Commentary

First Trust Energy Income and Growth Fund (FEN)

Semi-Annual Report

May 31, 2020 (Unaudited)

Advisor

First Trust Advisors L.P. (“First Trust” or the “Advisor”) serves as the investment advisor to the First Trust Energy Income and Growth Fund (the “Fund”). First Trust is responsible for the ongoing monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.

Sub-Advisor

Energy Income Partners, LLC

Energy Income Partners, LLC (“EIP”), located in Westport, CT, was founded in 2003 to provide professional asset management services in the area of energy-related master limited partnerships (“MLPs”) and other high-payout securities such as pipeline companies, power utilities, YieldCos, and energy infrastructure real estate investment trusts (“REITs”). EIP mainly focuses on investments in energy-related infrastructure assets such as pipelines, power transmission and distribution, petroleum storage and terminals that receive fee-based or regulated income from their corporate and individual customers. EIP manages or supervises approximately $4.3 billion of assets as of May 31, 2020. EIP advises two privately offered partnerships for U.S. high net worth individuals and an open-end mutual fund. EIP also manages separately managed accounts and provides its model portfolio to unified managed accounts. Finally, EIP serves as a sub-advisor to three closed-end management investment companies in addition to the Fund, two actively managed exchange-traded funds (“ETFs”), a sleeve of an actively managed ETF, a sleeve of a series of a variable insurance trust, and an open-end UCITS fund incorporated in Ireland. EIP is a registered investment advisor with the Securities and Exchange Commission.

Portfolio Management Team

James J. Murchie – Co-Portfolio Manager, Founder and CEO of Energy Income Partners, LLC

Eva Pao – Co-Portfolio Manager, Principal of Energy Income Partners, LLC

John Tysseland – Co-Portfolio Manager, Principal of Energy Income Partners, LLC

Commentary

First Trust Energy Income and Growth Fund

The Fund’s investment objective is to seek a high level of after-tax total return with an emphasis on current distributions paid to shareholders. The Fund pursues its objective by investing in cash-generating securities of energy companies, with a focus on investing in publicly traded MLPs, related public entities in the energy sector, and/or other public companies which EIP believes offer opportunities for income and growth. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.

Market Recap

The total return for the Alerian MLP Total Return Index (“AMZX”) and the Wells Fargo Midstream MLP Total Return Index (“WCHWMIDT”) (collectively the “MLP benchmarks”), for the six-month period ended May 31, 2020 was -24.26% and -25.05%, respectively. For AMZX, these returns reflect a positive 3.92% from distribution payments, while the remaining returns were due to share price depreciation. For WCHWMIDT, these returns reflect a positive 3.74% from distribution payments, while the remaining returns were due to share price depreciation. These figures are according to data collected from several sources, including the MLP benchmarks and Bloomberg. While in the short term, market share price appreciation can be volatile, we believe that over the long term, share price appreciation will approximate growth in per share quarterly cash distributions paid by MLPs.

Performance Analysis

On a net asset value (“NAV”) basis, the Fund provided a total return of -26.33%¹, including the reinvestment of dividends, for the six-month period ended May 31, 2020. This compares, according to collected data, to a total return of -2.10% for the S&P 500^® Index, 3.23% for the Bloomberg Barclays U.S. Credit Index of Corporate Bonds, -24.26% for AMZX, and -25.05% for WCHWMIDT. Unlike the Fund, the indices do not incur fees and expenses. On a market value basis, the Fund had a total return, including the reinvestment of dividends, of -38.86% for the six-month period ended May 31, 2020. At the end of the period, the Fund was priced at $11.58 per share while the NAV per share was $13.55, a discount of 14.54%. On November 30, 2019, the Fund was priced at $20.47 per share, while the NAV per share was $19.88, a premium of 2.97%.

¹ Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per Common Share for NAV returns and changes in Common Share price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results.

Page 3

Portfolio Commentary (Continued)

First Trust Energy Income and Growth Fund (FEN)

Semi-Annual Report

May 31, 2020 (Unaudited)

On April 20, 2020 the Fund announced a reduction to its regular quarterly Common Share dividend from $0.58 per share to $0.30 per share. The distribution reduction results from three factors that have lowered the Fund’s distributable cash flow: 1) a reduction in Fund assets as a result of portfolio sales to reduce Fund leverage to maintain compliance with applicable leverage limits, 2) reduced dividend payments from portfolio companies lowering dividend payout ratios and 3) anticipated changes to the portfolio composition including the Fund’s use of leverage and reductions to income from the covered call strategy.

For the six-month period ended May 31, 2020, the Fund’s NAV underperformed the MLP benchmarks’ average return of -24.66% by 167 basis points (“bps”). Leverage had a negative effect on the performance of the Fund and was the primary driver of the Fund’s underperformance during the reporting period. Derivatives had a positive impact on the performance of the Fund over the reporting period. Two important factors affecting the return of the Fund, relative to the average of the MLP benchmarks, are the Fund’s accrual for taxes and the use of financial leverage through a line of credit. The Fund established a committed facility agreement with The BNP Paribas Prime Brokerage with a current maximum commitment amount of $80,000,000. Prior to April 15, 2020, the maximum commitment amount was $180,000,000. The Fund uses leverage because its portfolio managers believe that, over time, leverage can enhance total return for common shareholders. However, the use of leverage can also increase the volatility of the NAV and, therefore, the share price. During the reporting period, prices of securities held by the Fund declined and the effect of changes in common share NAV and common share total return loss was magnified by the use of leverage. Unlike the Fund, the MLP benchmarks are not leveraged, nor are they net of an accrual for taxes. The accrual for taxes had a positive impact on the performance of the Fund over the reporting period.

Market and Fund Outlook

The dramatic price declines in crude oil due to Saudi and Russian production decisions coupled with the demand shock related to the coronavirus (“COVID-19”) pandemic triggered an unprecedented sell-off of energy pipeline and midstream companies in the first four months of 2020. These dramatic share price declines exceed any expected reduction in composite earnings of the Fund’s portfolio companies. The reason for this, in EIP’s view, is a massive deleveraging of the MLP-dedicated closed-end funds that hold a significant portion of the shares of the MLPs in the funds.

Weak market conditions drove a -21% decline in the AMZX between January 1 and February 28, 2020, then panic took hold in March driving another -59% decline by March 18 (Source: Bloomberg). Our analysis indicates that forced selling by levered closed-end MLP funds was ~$4.3 billion and outflows from open-end funds were ~$0.9 billion in a four-week period. This is nearly $1 billion more than the selling that occurred over a 9-month period in 2015-2016 when oil prices corrected from their highs of over $100 per barrel, due to outflows and de-leveraging but on assets that were nearly three times as large as today.

We believe the potential effect on the earnings of the Fund’s portfolio from recent events is less severe than the price decline experienced in the first five months of 2020. For example, at the end of the May of 2020, nearly 40% of the portfolio was invested in state-regulated utilities, sponsored vehicles of much larger corporations like Royal Dutch Shell PLC, and natural gas pipelines for which we expect negligible medium-term recurring earnings impact. The reason is that state-regulated utilities earn an allowed return on invested capital and any near-term hit to earnings will mostly be recovered in customer rates over time. The sponsored vehicles may also exhibit some near-term earnings weakness but since most of their revenues come from their own parent organizations, we do not expect much more than a 10% reduction to recurring earnings through 2021. Additionally, the Fund’s second largest holding at the end of the period was a Canadian pipeline company that is unique among other midstream companies as over 90% of the company’s cash flow is derived from regulated or contracted assets.

Overall, we expect the Fund’s portfolio companies to experience less earnings pressure in 2020 and 2021 than the S&P 500^® Index yet the companies owned by the Fund have underperformed this broad market index. Calendar year 2020 consensus earnings expectations for the S&P 500^® Index are down 29% from the end of January 2020 to the end of May 2020 while the weighted average 2020 consensus earnings expectations of the Fund’s portfolio companies are down 21% over the same period. Consensus expectations for 2021 earnings tell a similar story yet the Fund’s portfolio company valuations have suffered a much bigger decline because of the liquidity event at the MLP-dedicated closed-end funds. At the end of May 2020, the Fund’s portfolio traded at 13.3x 2020 P/E multiple which compares to 24.4x for the S&P 500^® Index despite having earnings that appear less affected by the extraordinary events that have unfolded over the last few months (Source: Bloomberg, FactSet).

Page 4

First Trust Energy Income and Growth Fund (FEN)

Portfolio of Investments

May 31, 2020 (Unaudited)

Shares/ Units	Description	Value
MASTER LIMITED PARTNERSHIPS – 67.3%
	Chemicals – 2.6%
347,598	Westlake Chemical Partners, L.P. (a)	$7,125,759
	Gas Utilities – 0.4%
82,600	Suburban Propane Partners, L.P. (a)	1,205,134
	Independent Power & Renewable Electricity Producers – 1.7%
90,261	NextEra Energy Partners, L.P. (b)	4,613,240
	Oil, Gas & Consumable Fuels – 62.6%
480,274	BP Midstream Partners, L.P. (a)	6,008,228
92,600	Cheniere Energy Partners, L.P. (a)	3,124,324
1,762,767	Energy Transfer, L.P. (a)	14,384,179
2,052,306	Enterprise Products Partners, L.P. (a) (c)	39,199,045
1,135,747	Holly Energy Partners, L.P. (a)	18,353,671
576,954	Magellan Midstream Partners, L.P. (a) (c)	26,159,094
274,100	Phillips 66 Partners, L.P. (a)	12,246,788
749,801	Plains All American Pipeline, L.P. (a)	7,273,070
950,988	Shell Midstream Partners, L.P. (a)	12,828,828
858,468	TC PipeLines, L.P. (a)	30,175,150
		169,752,377
	Total Master Limited Partnerships	182,696,510
	(Cost $127,014,928)
COMMON STOCKS – 54.5%
	Electric Utilities – 10.5%
35,000	Alliant Energy Corp.	1,727,600
40,000	Emera, Inc. (CAD)	1,590,297
69,300	Enel SPA, ADR	530,838
20,600	Eversource Energy	1,724,220
174,400	Exelon Corp.	6,681,264
113,400	FirstEnergy Corp.	4,792,284
66,500	Fortis, Inc. (CAD)	2,560,311
11,500	Iberdrola S.A., ADR	495,765
3,400	NextEra Energy, Inc.	868,904
14,000	Orsted A/S, ADR	549,360
249,100	PPL Corp. (c)	6,959,854
300	Southern (The) Co.	17,121
		28,497,818
	Gas Utilities – 2.5%
402,400	AltaGas Ltd. (CAD)	4,319,622
7,700	Atmos Energy Corp.	791,406
46,800	New Jersey Resources Corp.	1,643,616
		6,754,644
	Independent Power & Renewable Electricity Producers – 0.2%
37,800	EDP Renovaveis S.A. (EUR)	500,162
	Multi-Utilities – 7.6%
30,900	DTE Energy Co.	3,323,913
214,700	Public Service Enterprise Group, Inc. (c)	10,958,288
50,300	Sempra Energy (a)	6,353,393
		20,635,594
	Oil, Gas & Consumable Fuels – 33.4%
302,796	Enbridge, Inc. (a) (c)	9,825,730
178,840	Equitrans Midstream Corp. (a)	1,446,816

See Notes to Financial Statements

Page 5

First Trust Energy Income and Growth Fund (FEN)

Portfolio of Investments (Continued)

May 31, 2020 (Unaudited)

Shares/ Units	Description	Value
COMMON STOCKS (Continued)
	Oil, Gas & Consumable Fuels (Continued)
110,100	Inter Pipeline, Ltd. (CAD) (a)	$1,008,361
145,060	Keyera Corp. (CAD) (a)	2,298,877
1,048,155	Kinder Morgan, Inc. (a) (c)	16,560,849
527,684	ONEOK, Inc. (a) (c)	19,360,726
524,332	TC Energy Corp. (CAD) (a) (c)	23,600,183
804,741	Williams (The) Cos., Inc. (a) (c)	16,440,859
		90,542,401
	Water Utilities – 0.3%
6,500	American Water Works Co., Inc.	825,500
	Total Common Stocks	147,756,119
	(Cost $145,311,338)
	Total Investments – 121.8%	330,452,629
	(Cost $272,326,266) (d)

Number of Contracts	Description	Notional Amount	Exercise Price	Expiration Date	Value
CALL OPTIONS WRITTEN – (0.7)%
(1,800)	Enbridge, Inc. (e)	$(5,841,000)	$42.50	Jul 2020	(10,800)
(5,300)	Enterprise Products Partners, L.P.	(10,123,000)	18.00	Jun 2020	(795,000)
(2,110)	Kinder Morgan, Inc.	(3,333,800)	23.00	Jun 2020	(4,220)
(1,700)	Magellan Midstream Partners, L.P.	(7,707,800)	47.50	Jun 2020	(85,000)
(1,200)	ONEOK, Inc.	(4,402,800)	32.50	Jun 2020	(552,000)
(505)	PPL Corp.	(1,410,970)	28.00	Jun 2020	(36,865)
(1,000)	Public Service Enterprise Group, Inc.	(5,104,000)	50.00	Jun 2020	(192,000)
(395)	Public Service Enterprise Group, Inc.	(2,016,080)	55.00	Jun 2020	(5,135)
(1,000)	TC Energy Corp.	(4,501,000)	45.00	Jul 2020	(180,000)
(1,520)	Williams (The) Cos., Inc.	(3,105,360)	21.00	Jun 2020	(48,640)
(2,500)	Williams (The) Cos., Inc.	(5,107,500)	23.00	Aug 2020	(102,500)
	Total Call Options Written				(2,012,160)
	(Premiums received $1,198,996)

Outstanding Loan – (21.8)%	(59,200,000)
Net Other Assets and Liabilities – 0.7%	2,008,490
Net Assets – 100.0%	$271,248,959

(a)	All or a portion of this security serves as collateral on the outstanding loan.
(b)	This security is taxed as a “C” corporation for federal income tax purposes.
(c)	All or a portion of this security’s position represents cover for outstanding options written.
(d)	Aggregate cost for federal income tax purposes was $244,254,027. As of May 31, 2020, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $106,854,720 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $22,668,278. The net unrealized appreciation was $84,186,442. The amounts presented are inclusive of derivative contracts.
(e)	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 May 31, 2020, investments noted as such are valued at $(10,800) or (0.0)% of net assets.

ADR	American Depositary Receipt
CAD	Canadian Dollar
EUR	Euro Dollar

Page 6

See Notes to Financial Statements

First Trust Energy Income and Growth Fund (FEN)

Portfolio of Investments (Continued)

May 31, 2020 (Unaudited)

Valuation Inputs

A summary of the inputs used to value the Fund’s investments as of May 31, 2020 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements):

ASSETS TABLE
	Total Value at 5/31/2020	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Master Limited Partnerships*	$ 182,696,510	$ 182,696,510	$ —	$ —
Common Stocks*	147,756,119	147,756,119	—	—
Total Investments	$ 330,452,629	$ 330,452,629	$—	$—
LIABILITIES TABLE
	Total Value at 5/31/2020	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Call Options Written	$ (2,012,160)	$ (2,001,360)	$ (10,800)	$ —

* See Portfolio of Investments for industry breakout.

See Notes to Financial Statements

Page 7

First Trust Energy Income and Growth Fund (FEN)

Statement of Assets and Liabilities

May 31, 2020 (Unaudited)

ASSETS:
Investments, at value     (Cost $272,326,266)	$ 330,452,629
Cash	7,062,825
Receivables:
Income taxes	5,023,694
Investment securities sold	1,509,766
Dividends	314,145
Dividend reclaims	60,817
Prepaid expenses	13,645
Total Assets	344,437,521
LIABILITIES:
Outstanding loan	59,200,000
Deferred income taxes	10,976,729
Options written, at value (Premiums received $1,198,996)	2,012,160
Due to custodian foreign currency	68
Payables:
Interest and fees on loan	358,060
Investment advisory fees	271,093
Investment securities purchased	210,398
Audit and tax fees	93,306
Custodian fees	22,298
Administrative fees	16,640
Shareholder reporting fees	14,157
Transfer agent fees	8,515
Trustees’ fees and expenses	2,814
Financial reporting fees	771
Legal fees	612
Other liabilities	941
Total Liabilities	73,188,562
NET ASSETS	$271,248,959
NET ASSETS consist of:
Paid-in capital	$ 340,727,441
Par value	200,208
Accumulated distributable earnings (loss)	(69,678,690)
NET ASSETS	$271,248,959
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)	$13.55
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)	20,020,835

Page 8

See Notes to Financial Statements

First Trust Energy Income and Growth Fund (FEN)

Statement of Operations

For the Six Months Ended May 31, 2020 (Unaudited)

INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $266,300)		$ 4,569,255
Interest		11,443
Total investment income		4,580,698
EXPENSES:
Interest and fees on loan		6,153,681
Investment advisory fees		2,193,941
Administrative fees		106,715
Audit and tax fees		50,116
Shareholder reporting fees		50,082
Custodian fees		31,561
Legal fees		16,226
Transfer agent fees		15,765
Listing expense		10,010
Trustees’ fees and expenses		8,302
Financial reporting fees		4,625
Other		37,686
Total expenses		8,678,710
NET INVESTMENT INCOME (LOSS) BEFORE TAXES		(4,098,012)
Current federal income tax benefit (expense)	(10,663,388)
Current state income tax benefit (expense)	(1,012,245)
Deferred federal income tax benefit (expense)	6,174,309
Deferred state income tax benefit (expense)	754,780
Total income tax benefit (expense)		(4,746,544)
NET INVESTMENT INCOME (LOSS)		(8,844,556)
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) before taxes on:
Investments		(53,714,201)
Written options contracts		2,994,538
Foreign currency transactions		(58,371)
Net realized gain (loss) before taxes		(50,778,034)
Current federal income tax benefit (expense)	10,663,388
Current state income tax benefit (expense)	1,005,269
Total income tax benefit (expense)		11,668,657
Net realized gain (loss) on investments, written options and foreign currency transactions		(39,109,377)
Net change in unrealized appreciation (depreciation) before taxes on:
Investments		(76,727,175)
Written options contracts		(1,936,238)
Foreign currency translation		(2,280)
Net change in unrealized appreciation (depreciation) before taxes		(78,665,693)
Deferred federal income tax benefit (expense)	21,426,666
Deferred state income tax benefit (expense)	1,618,424
Total income tax benefit (expense)		23,045,090
Net change in unrealized appreciation (depreciation) on investments, written options and foreign currency translation		(55,620,603)
NET REALIZED AND UNREALIZED GAIN (LOSS)		(94,729,980)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$(103,574,536)

See Notes to Financial Statements

Page 9

First Trust Energy Income and Growth Fund (FEN)

Statements of Changes in Net Assets

	Six Months Ended 5/31/2020 (Unaudited)	Year Ended 11/30/2019
OPERATIONS:
Net investment income (loss)	$ (8,844,556)	$ 2,274,987
Net realized gain (loss)	(39,109,377)	22,071,135
Net increase from payment by the sub-advisor	—	99,941
Net change in unrealized appreciation (depreciation)	(55,620,603)	(5,898,570)
Net increase (decrease) in net assets resulting from operations	(103,574,536)	18,547,493
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations	—	(26,260,210)
Return of capital (See Note 2E)	(23,218,809)	(20,120,435)
Total distributions to shareholders	(23,218,809)	(46,380,645)
CAPITAL TRANSACTIONS:
Proceeds from Common Shares reinvested	185,762	577,146
Net increase (decrease) in net assets resulting from capital transactions	185,762	577,146
Total increase (decrease) in net assets	(126,607,583)	(27,256,006)
NET ASSETS:
Beginning of period	397,856,542	425,112,548
End of period	$ 271,248,959	$ 397,856,542
CAPITAL TRANSACTIONS were as follows:
Common Shares at beginning of period	20,011,594	19,984,376
Common Shares issued as reinvestment under the Dividend Reinvestment Plan	9,241	27,218
Common Shares at end of period	20,020,835	20,011,594

Page 10

See Notes to Financial Statements

First Trust Energy Income and Growth Fund (FEN)

Statement of Cash Flows

For the Six Months Ended May 31, 2020 (Unaudited)

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$(103,574,536)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Purchases of investments	(206,058,681)
Sales of investments	304,337,796
Proceeds from written options	3,847,110
Amount paid to close written options	(598,594)
Return of capital received from investment in MLPs	11,615,214
Net realized gain/loss on investments and written options	50,719,663
Net change in unrealized appreciation/depreciation on investments and written options	78,663,413
Decrease in deferred income tax payable	(30,013,739)
Changes in assets and liabilities:
Increase in income tax receivable	(2,211,920)
Decrease in dividend reclaims receivable	549
Decrease in dividends receivable	283,576
Increase in prepaid expenses	(6,304)
Increase in due to custodian foreign currency	68
Decrease in interest and fees payable on loan	(44,729)
Decrease in investment advisory fees payable	(180,423)
Decrease in audit and tax fees payable	(6,927)
Decrease in legal fees payable	(4,794)
Decrease in shareholder reporting fees payable	(12,098)
Decrease in administrative fees payable	(7,318)
Increase in custodian fees payable	1,589
Increase in transfer agent fees payable	2,646
Decrease in Trustees’ fees and expenses payable	(4,070)
Decrease in other liabilities payable	(26,814)
Cash provided by operating activities		$106,720,677
Cash flows from financing activities:
Proceeds from Common Shares reinvested	185,762
Distributions to Common Shareholders from return of capital	(23,218,809)
Repayment of borrowing	(106,300,000)
Proceeds from borrowing	19,500,000
Cash used in financing activities		(109,833,047)
Decrease in cash and foreign currency		(3,112,370)
Cash and foreign currency at beginning of period		10,175,195
Cash and foreign currency at end of period		$7,062,825
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees		$6,198,410
Cash paid during the period for taxes		$2,218,895

See Notes to Financial Statements

Page 11

First Trust Energy Income and Growth Fund (FEN)

Financial Highlights

For a Common Share outstanding throughout each period

	Six Months Ended 5/31/2020 (Unaudited)	Year Ended November 30,
		2019	2018	2017	2016	2015
Net asset value, beginning of period	$ 19.88	$ 21.27	$ 22.72	$ 25.27	$ 25.41	$ 38.08
Income from investment operations:
Net investment income (loss) (a)	(0.44)	0.11	(0.20)	0.13	0.04	0.18
Net realized and unrealized gain (loss)	(4.73)	0.82 (b)	1.07	(0.37) (b)	2.14 (b)	(10.59)
Total from investment operations	(5.17)	0.93	0.87	(0.24)	2.18	(10.41)
Distributions paid to shareholders from:
Net investment income	—	(0.34)	(0.38)	—	—	—
Net realized gain	—	(0.98)	(1.64)	(2.32)	(0.25)	(2.26)
Return of capital	(1.16)	(1.00)	(0.30)	—	(2.07)	—
Total distributions paid to Common Shareholders	(1.16)	(2.32)	(2.32)	(2.32)	(2.32)	(2.26)
Premiums from shares sold in at the market offering	—	—	0.00 (c)	0.01	—	—
Net asset value, end of period	$13.55	$19.88	$21.27	$22.72	$25.27	$25.41
Market value, end of period	$11.58	$20.47	$19.97	$22.24	$26.30	$23.12
Total return based on net asset value (d)	(26.33)%	4.18% (b)	3.69%	(1.42)% (b)	9.61% (b)	(28.30)%
Total return based on market value (d)	(38.86)%	14.25%	(0.55)%	(7.28)%	25.39%	(29.96)%
Net assets, end of period (in 000’s)	$ 271,249	$ 397,857	$ 425,113	$ 449,385	$ 489,743	$ 491,820
Portfolio turnover rate	46%	65%	42%	40%	54%	28%
Ratios of expenses to average net assets:
Including current and deferred income taxes (e)	(12.87)% (f) (g)	3.79%	(7.20)%	2.07%	7.65%	(15.26)%
Excluding current and deferred income taxes	5.25% (f) (g)	2.82%	2.79%	2.68%	2.60%	2.21%
Excluding current and deferred income taxes and interest expense	1.53% (f)	1.52%	1.54%	1.52%	1.51%	1.47%
Ratios of net investment income (loss) to average net assets:
Net investment income (loss) ratio before tax expenses	(2.48)% (f) (g)	0.38%	(0.42)%	(0.09)%	(0.77)%	0.72%
Net investment income (loss) ratio including tax expenses (e)	15.64% (f) (g)	(0.59)%	9.57%	0.52%	(5.82)%	18.18%
Indebtedness:
Total loan outstanding (in 000’s)	$ 59,200	$ 146,000	$ 150,500	$ 155,500	$ 174,500	$ 183,000
Asset coverage per $1,000 of indebtedness (h)	$ 5,582	$ 3,725	$ 3,825	$ 3,890	$ 3,807	$ 3,688

(a)	Based on average shares outstanding.
(b)	During the fiscal years ended November 30, 2019, 2017 and 2016, the sub-advisor reimbursed the Fund $130,183, $39,539 and $55,570, respectively, in connection with trade errors which each represent less than $0.01 per share. Since the sub-advisor reimbursed the Fund, there was no effect on the total return.
(c)	Amount is less than $0.01.
(d)	Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results.
(e)	Includes current and deferred income taxes associated with each component of the Statement of Operations.
(f)	Annualized.
(g)	This ratio includes breakage fees. If breakage fees had not been included, these expense ratios would have been 2.60% lower and the net investment income ratios would have been 2.60% higher. See Note 6 - Borrowings in the Notes to Financial Statements for additional information.
(h)	Calculated by subtracting the Fund’s total liabilities (not including the loan outstanding) from the Fund’s total assets, and dividing by the outstanding loan balance in 000’s.

Page 12

See Notes to Financial Statements

Notes to Financial Statements

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (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 (“SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund trades under the ticker symbol “FEN” on the NYSE American.

The Fund’s investment objective is to seek a high level of after-tax total return with an emphasis on current distributions paid to shareholders. The Fund seeks to provide its shareholders with an efficient vehicle to invest in a portfolio of cash-generating securities of energy companies. The Fund focuses on investing in publicly-traded master limited partnerships (“MLPs”), related public entities in the energy sector and other public companies, which Energy Income Partners, LLC (“EIP” or the “Sub-Advisor”) believes offer opportunities for income and growth. Under normal market conditions, the Fund will invest at least 85% of its managed assets in securities of energy companies, energy sector MLPs and energy sector MLP-related entities. There can be no assurance that the Fund will achieve its investment objective. The Fund may not be appropriate for all investors.

2. Significant Accounting Policies

The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

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 Fund’s 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, the value of call options written (sold), 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 the 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 the Pricing Committee of the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), 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, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund’s investments are valued as follows:

Common stocks, real estate investment trusts, MLPs, and other equity securities listed on any national or foreign exchange (excluding The Nasdaq 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 an 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.

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, the Advisor’s Pricing Committee, 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 third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an

Page 13

Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

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 third-party 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 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.

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 or exchange-traded 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:

• 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.

The inputs or methodologies 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 May 31, 2020, 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 MLPs and common stocks held in the Fund’s portfolio as determined to be appropriate by the Sub-Advisor. The number of options the Fund can

Page 14

Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

write (sell) is limited by the amount of MLPs and common stocks the Fund holds in its portfolio. The Fund will not write (sell) “naked” or uncovered options. When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in “Options written, at value” on the Fund’s Statement of Assets and Liabilities. 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.

The options that the Fund writes (sells) will either be exercised, expire or be canceled 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 and is included in “Net realized gain (loss) before taxes on investments” on the Statement of Operations. 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. Gain or loss on options is presented separately as “Net realized gain (loss) before taxes on written options” on the Statement of Operations.

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 and Investment Income

Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on an identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded daily on an accrual basis, including amortization of premiums and accretion of discounts. The Fund will rely to some extent on information provided by the MLPs, which is not necessarily timely, to estimate taxable income allocable to the MLP units held in the Fund’s portfolio and to estimate the associated deferred tax asset or liability. From time to time, the Fund will modify its estimates and/or assumptions regarding its deferred tax liability as new information becomes available. To the extent the Fund modifies its estimates and/or assumptions, the NAV of the Fund will likely fluctuate.

Distributions received from the Fund’s investments in MLPs generally are comprised of return of capital and investment income. The Fund records estimated return of capital and investment income based on historical information available from each MLP. These estimates may subsequently be revised based on information received from the MLPs after their tax reporting periods are concluded.

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. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) before taxes on foreign currency translation” on the Statement of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in “Net change in unrealized appreciation (depreciation) before taxes on investments” on

Page 15

Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

the Statement of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are shown in “Net realized gain (loss) before taxes on foreign currency transactions” on the Statement of Operations. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in “Net realized gain (loss) before taxes on investments” on the Statement of Operations.

E. Distributions to Shareholders

The Fund intends to make quarterly distributions to Common Shareholders. The Fund’s distributions generally will consist of cash and paid-in kind distributions from MLPs or their affiliates, dividends from common stocks, and income from other investments held by the Fund less operating expenses, including taxes. Distributions to Common Shareholders are recorded on the ex-date and are based on U.S. GAAP, which may differ from their ultimate characterization for federal income tax purposes.

Distributions made from current or accumulated earnings and profits of the Fund will be taxable to shareholders as dividend income. Distributions that are in an amount greater than the Fund’s current and accumulated earnings and profits will represent a tax-deferred return of capital to the extent of a shareholder’s basis in the Common Shares, and such distributions will correspondingly increase the realized gain upon the sale of the Common Shares. Additionally, distributions not paid from current or accumulated earnings and profits that exceed a shareholder’s tax basis in the Common Shares will generally be taxed as a capital gain.

Distributions of $23,218,809 paid during the six months ended May 31, 2020 are anticipated to be characterized as return of capital for federal income tax purposes. However, the ultimate determination of the character of the distributions will be made after the 2020 calendar year. Distributions will automatically be reinvested in additional Common Shares pursuant to the Fund’s Dividend Reinvestment Plan unless cash distributions are elected by the shareholder.

F. Income Taxes

The Fund is treated as a regular C corporation for U.S. federal income tax purposes and as such will be obligated to pay federal and applicable state and foreign corporate taxes on its taxable income. The Fund’s tax expense or benefit is included in the Statement of Operations based on the component of income or gains (losses) to which such expense or benefit relates. The “Tax Cuts and Jobs Act of 2017” (the “Act”) reduced the maximum graduated income tax rate for corporations from 35% to a flat 21% for tax years that begin after December 31, 2017. For tax years that begin after December 31, 2017, the corporate alternative minimum tax is repealed. This differs from most investment companies, which elect to be treated as “regulated investment companies” under the U.S. Internal Revenue Code of 1986, as amended. The various investments of the Fund may cause the Fund to be subject to state income taxes on a portion of its income at various rates.

The tax deferral benefit the Fund derives from its investment in MLPs results largely because the MLPs are treated as partnerships for federal income tax purposes. As a partnership, an MLP has no income tax liability at the entity level. As a limited partner in the MLPs in which it invests, the Fund will be allocated its pro rata share of income, gains, losses, deductions and credits from the MLPs, regardless of whether or not any cash is distributed from the MLPs.

To the extent that the distributions received from the MLPs exceed the net taxable income realized by the Fund from its investment, a tax liability results. This tax liability is a deferred liability to the extent that MLP distributions received have not exceeded the Fund’s adjusted tax basis in the respective MLPs. To the extent that distributions from an MLP exceed the Fund’s adjusted tax basis, the Fund will recognize a taxable capital gain. For the six months ended May 31, 2020, distributions of $10,976,458 received from MLPs have been reclassified as a return of capital. The cost basis of applicable MLPs has been reduced accordingly.

The Fund’s provision for income taxes consists of the following:

Current federal income tax benefit (expense)	$ —
Current state income tax benefit (expense)	(6,976)
Current foreign income tax benefit (expense)	—
Deferred federal income tax benefit (expense)	27,600,975
Deferred state income tax benefit (expense)	2,373,204
Total income tax benefit (expense)	$ 29,967,203

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The Fund’s 2020 income tax provision includes a full valuation

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Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

allowance against the deferred tax assets associated with the state net operating loss. Components of the Fund’s deferred tax assets and liabilities as of May 31, 2020 are as follows:

Deferred tax assets:

Federal net operating loss	$—
State net operating loss	3,187,992
State income taxes	348,892
Capital loss carryforward	7,741,987
Other	183,789
Total deferred tax assets	11,462,660
Less: valuation allowance	(3,187,992)
Net deferred tax assets	$8,274,668
Deferred tax liabilities:
Unrealized gains on investment securities	$(19,251,397)
Total deferred tax liabilities	(19,251,397)
Total net deferred tax liabilities	$(10,976,729)

Total income taxes differ from the amount computed by applying the federal income tax rate of 21% to net investment income and realized and unrealized gains on investments.

Application of statutory income tax rate	$ (28,043,765)
State income taxes, net	(2,130,284)
Change in valuation allowance	260,964
Effect of permanent differences	(54,118)
Total	$ (29,967,203)

The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ended 2016, 2017, 2018, and 2019 remain open to federal and state audit. As of May 31, 2020, management has evaluated the application of these standards to the Fund, and has determined that no provision for income tax is required in the Fund’s financial statements for uncertain tax positions.

G. Expenses

The Fund will pay all expenses directly related to its operations.

3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements

First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund. For these services, First Trust is entitled to a monthly fee calculated at an annual rate of 1.00% of the Fund’s Managed Assets (the average daily total asset value of the Fund minus the sum of the Fund’s liabilities other than the principal amount of borrowings). First Trust also provides fund reporting services to the Fund for a flat annual fee in the amount of $9,250.

EIP serves as the Fund’s sub-advisor and manages the Fund’s portfolio subject to First Trust’s supervision. The Sub-Advisor receives a monthly sub-advisory fee calculated at an annual rate of 0.50% of the Fund’s Managed Assets that is paid by First Trust out of its investment advisory fee.

First Trust Capital Partners, LLC (“FTCP”), an affiliate of First Trust, owns, through a wholly-owned subsidiary, a 15% ownership interest in each of EIP and EIP Partners, LLC, an affiliate of EIP.

BNY Mellon Investment Servicing (US) Inc. (“BNYM IS”) serves as the Fund’s transfer agent in accordance with certain fee arrangements. As transfer agent, BNYM IS is responsible for maintaining shareholder records for the Fund. The Bank of New York Mellon (“BNYM”) serves as the Fund’s administrator, fund accountant, and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BNYM is responsible for providing certain administrative and accounting services to the Fund,

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Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

including maintaining the Fund’s books of account, records of the Fund’s securities transactions, and certain other books and records. As custodian, BNYM is responsible for custody of the Fund’s assets. BNYM IS and BNYM are subsidiaries of The Bank of New York Mellon Corporation, a financial holding company.

Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or an index fund.

Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and “Interested” Trustee receive no compensation from the Fund for acting in such capacities.

4. Purchases and Sales of Securities

The cost of purchases and proceeds from sales of securities, excluding short-term investments, for the six months ended May 31, 2020, were $206,269,079 and $305,847,562, respectively.

5. Derivative Transactions

The following table presents the types of derivatives held by the Fund at May 31, 2020, the primary underlying risk exposure and the location of these instruments as presented on the Statement of Assets and Liabilities.

		Asset Derivatives		Liability Derivatives
Derivative Instrument	Risk Exposure	Statement of Assets and Liabilities Location	Value	Statement of Assets and Liabilities Location	Value
Written Options	Equity Risk	—	—	Options written, at value	$ 2,012,160

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended May 31, 2020, on derivative instruments, as well as the primary underlying risk exposure associated with each instrument.

Statement of Operations Location
Equity Risk Exposure
Net realized gain (loss) before taxes on written options contracts	$2,994,538
Net change in unrealized appreciation (depreciation) before taxes on written options contracts	(1,936,238)

During the six months ended May 31, 2020, the premiums for written options opened were $3,847,110, and the premiums for written options closed, exercised and expired were $5,141,799.

The Fund does not have the right to offset financial assets and liabilities related to option contracts on the Statement of Assets and Liabilities.

6. Borrowings

The Fund entered into a committed facility agreement (the “Committed Facility Agreement”) with BNP Paribas Prime Brokerage International, Ltd. (“PBL”). Absent certain events of default or failure to maintain certain collateral requirements, PBL may not terminate the Committed Facility Agreement except upon 179 calendar days’ prior notice. The maximum commitment amount is $80,000,000, which comprises a floating rate financing amount and a fixed rate financing amount. Prior to April 15, 2020, the maximum commitment amount was $180,000,000. The commitment fee of 0.55% of the undrawn amount is waived on any day on which the drawn amount is 80% or more of the maximum commitment amount. The borrowing rate on the floating rate financing amount is equal to the 1-month LIBOR plus 85 basis points and the borrowing rate on the fixed rate financing amount of $47,200,000 is 3.53%. The fixed rate financing amount is for a ten-year period ending in 2023. The Fund paid $4,299,000 in breakage fees during the period. The breakage fees are included in “Interest and fees on loan” on the Statement of Operations.

The average amount outstanding for the six months ended May 31, 2020, was $107,077,596, with a weighted average interest rate of 3.24%. As of May 31, 2020, the Fund had outstanding borrowings of $59,200,000, which approximates fair value, under the Committed Facility Agreement. The borrowings are categorized as Level 2 within the fair value hierarchy. On the floating rate

Page 18

Notes to Financial Statements (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

financing amount, the high and low annual interest rates for the six months ended May 31, 2020, were 2.65% and 1.02%, respectively. The weighted average interest rate at May 31, 2020, was 3.02%.

7. Indemnification

The Fund has a variety of indemnification obligations under contracts with its service providers. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

8. Industry Concentration Risk

Under normal market conditions, the Fund invests at least 85% of its Managed Assets in securities issued by energy companies, energy sector MLPs and energy sector MLP-related entities. Given this industry concentration, the Fund is more susceptible to adverse economic or regulatory occurrences affecting that industry than an investment company that is not concentrated in a single industry. Energy issuers may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors.

9. Subsequent Events

Management has evaluated the impact of all subsequent events to the Fund through the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.

Page 19

Additional Information

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

Dividend Reinvestment Plan

If your Common Shares are registered directly with the Fund or if you hold your Common Shares with a brokerage firm that participates in the Fund’s Dividend Reinvestment Plan (the “Plan”), unless you elect, by written notice to the Fund, to receive cash distributions, all dividends, including any capital gain distributions, on your Common Shares will be automatically reinvested by BNY Mellon Investment Servicing (US) Inc. (the “Plan Agent”), in additional Common Shares under the Plan. If you elect to receive cash distributions, you will receive all distributions in cash paid by check mailed directly to you by the Plan Agent, as the dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will receive will be determined as follows:

(1)

If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date.

(2)

If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments.

You may elect to opt-out of or withdraw from the Plan at any time by giving written notice to the Plan Agent, or by telephone at (866) 340-1104, in accordance with such reasonable requirements as the Plan Agent and the Fund may agree upon. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan, and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Agent maintains all Common Shareholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common Shares in your account will be held by the Plan Agent in non-certificated form. The Plan Agent will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy you receive will include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Capital gains and income are realized although cash is not received by you. Consult your financial advisor for more information.

If you hold your Common Shares with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above.

The Fund reserves the right to amend or terminate the Plan if in the judgment of the Board of Trustees the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained by writing BNY Mellon Investment Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware 19809.

Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies and information on how the Fund voted proxies relating to portfolio investments during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on the Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

Portfolio Holdings

The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the

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Additional Information (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.

Submission of Matters to a Vote of Shareholders

The Fund held its Annual Meeting of Shareholders (the “Annual Meeting”) on April 22, 2020. At the Annual Meeting, Robert F. Keith was elected by the Common Shareholders of the First Trust Energy Income and Growth Fund as the Class I Trustee for a three-year term expiring at the Fund’s annual meeting of shareholders in 2023. The number of votes cast in favor of Mr. Keith was 16,391,338, the number of votes against was 428,535 and the number of broker non-votes was 3,200,962. James A. Bowen, Richard E. Erickson, Thomas R. Kadlec and Niel B. Nielson are the other current and continuing Trustees.

Risk Considerations

The following discussion summarizes certain (but not all) of the principal risks associated with investing in the Fund. The Fund is subject to the informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports, proxy statements and other information that is available for review. The order of the below risk factors does not indicate the significance of any particular risk factor.

Covered Call Options Risk. As the writer (seller) of a call option, the Fund forgoes, during the life of the option, the opportunity to profit from increases in the market value of the portfolio security covering the option above the sum of the premium and the strike price of the call option but retains the risk of loss should the price of the underlying security decline. The value of call options written by the Fund, which are priced daily, are determined by trading activity in the broad options market and will be affected by, among other factors, changes in the value of the underlying security in relation to the strike price, changes in dividend rates of the underlying security, changes in interest rates, changes in actual or perceived volatility of the stock market and the underlying security, and the time remaining until the expiration date. The value of call options written by the Fund may be adversely affected if the market for the option is reduced or becomes illiquid. There can be no assurance that a liquid market will exist when the Fund seeks to close out an option position.

Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third-party service providers.

Energy Infrastructure Companies Risk. Energy infrastructure companies may be directly affected by energy commodity prices, especially those companies which own the underlying energy commodity. A decrease in the production or availability of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the volume of such commodities available for transportation, processing, storage or distribution may adversely impact the financial performance of energy infrastructure companies. Energy infrastructure companies are subject to significant federal, state and local government regulation in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for products and services. Various governmental authorities have the power to enforce compliance with these regulations and the permits issued under them and violators are subject to administrative, civil and criminal penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely increase compliance costs and may adversely affect the financial performance of energy infrastructure companies. Natural disasters, such as hurricanes in the Gulf of Mexico, also may impact energy infrastructure companies.

Certain energy infrastructure companies are subject to the imposition of rate caps, increased competition due to deregulation, counterparties to contracts defaulting or going bankrupt, the difficulty in obtaining an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the capital market’s ability to absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation may cause difficulties for these companies.

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Additional Information (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

Equity Securities Risk. The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which the Fund invests. Prices of equity securities fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase.

Interest Rate Swaps Risk. To the extent that the Fund invests in swaps, if short-term interest rates are lower than the Fund’s fixed rate of payment on an interest rate swap, the swap will reduce common share net earnings. In addition, a default by the counterparty to a swap transaction could also negatively impact the performance of the common shares.

Investment Concentration Risk. The Fund’s investments are concentrated in the group of industries that are part of the energy sector, with a particular focus on energy sector MLPs, energy sector MLP-related entities and other energy companies. The Fund’s concentration in the group of industries that are part of the energy sector may present more risk than if the Fund were broadly diversified over multiple sectors of the economy. A downturn in one or more industries within the energy sector, material declines in energy-related commodity prices, adverse political, legislative or regulatory developments or other events could have a larger impact on the Fund than on an investment company that does not concentrate in the group of industries that are part of the energy sector. Certain risks inherent in investing in the business of the types of securities that the Fund may invest include: commodity pricing risk, commodity supply and demand risk, lack of diversification of and reliance on customers and suppliers risk, including the risk of counterparty default, commodity depletion and exploration risk, energy sector and energy utility industry regulatory risk, including risks associated with the prices and methodology of determining prices that energy companies may charge for their products and services, interest rate risk, risk of lack of acquisition or reinvestment opportunities, risk of lacking of funding, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and MLP market disruption risk, and technology risk.

Companies that own interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff rates that they may charge to their customers. In March 2018, FERC changed its tax allowance policy to no longer permit such companies to include in their cost of service an income tax allowance to the extent that their owners have an actual or potential tax liability on the income generated by them. This has had a negative impact on the performance of some energy companies affected by this decision.

Other factors which may reduce the amount of cash an MLP, MLP-related entity and other energy sector company has available to pay its debt and equity holders include increased operating costs, maintenance capital expenditures, acquisition costs, expansion or construction costs and borrowing costs (including increased borrowing costs as a result of additional collateral requirements as a result of ratings downgrades by credit agencies).

Leverage Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including: the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result in fluctuations in the dividends paid on the common shares; in a declining market, the use of leverage is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the common shares; and when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.

Liquidity Risk. Certain securities in which the Fund may invest may trade less frequently, particularly those of issuers with smaller capitalizations. Securities with limited trading volumes may display volatile or erratic price movements. The Fund may have difficulty selling these investments in a timely manner, be forced to sell them for less than it otherwise would have been able to realize, or both.

Management Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.

Market Discount from Net Asset Value. 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.

Market Risk. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of

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Additional Information (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

infectious diseases or other public health issues, recessions, or other events could have a significant negative impact on the Fund and its investments. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

MLP Risk. Investments in securities of MLPs involve certain risks different from or in addition to the risks of investing in common stocks. MLP common units can be affected by macro-economic factors and other factors unique to the partnership or company and the industry or industries in which the MLP operates. Certain MLP securities may trade in relatively low volumes due to their smaller capitalizations or other factors, which may cause them to have a high degree of price volatility and illiquidity. The structures of MLPs create certain risks, including, for example, risks related to the limited ability of investors to control an MLP and to vote on matters affecting the MLP, risks related to potential conflicts of interest between an MLP and the MLP’s general partner, the risk that an MLP will generate insufficient cash flow to meet its current operating requirements, the risk that an MLP will issue additional securities or engage in other transactions that will have the effect of diluting the interests of existing investors, and risks related to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price.

Non-Diversification Risk. The Fund is a non-diversified investment company under the 1940 Act and will not be treated as a regulated investment company under the Internal Revenue Code of 1986. Accordingly, the diversification-specific regulatory requirements under the 1940 Act and the Internal Revenue Code of 1986 regarding the minimum number or size of portfolio securities do not apply to the Fund, and the Fund’s investments may be more heavily concentrated in, and thus more sensitive to changes in the prices of, securities of particular issuers.

Non-U.S. Securities and Currency Risk. Investing in non-U.S. securities involves certain risks not involved in domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign economic, financial, political and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions; lower trading volume; withholding taxes; greater price volatility and illiquidity; different trading and settlement practices; less governmental supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available information; and different accounting, auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S. currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value of the Fund’s securities and the unrealized appreciation or depreciation of investments.

Potential Conflicts of Interest Risk. First Trust, EIP and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and EIP currently manage and may in the future manage and/or advise other investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to EIP) for investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First Trust and EIP have a financial incentive to leverage the Fund.

Recent Market and Economic Developments. The number of energy-related MLPs has declined since 2014. The industry is witnessing the consolidation or simplification of corporate structures where the MLP sleeve of capital is being eliminated. As a result of the foregoing, the Fund’s MLP investments could become less diverse and the Fund may increase its non-MLP investments consistent with its investment objective and policies.

Restricted Securities Risk. The term “restricted securities” refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund could sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of the securities. The Fund would, in either case, bear market risks during that period.

Tax Risk. A change in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in an MLP being treated as a corporation for United States federal income tax purposes, which would result in such MLP being required to pay United States federal income tax on its taxable income. Recent events have caused some MLPs to be reclassified or restructured as corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing the amount of cash available for distribution by the MLP and causing any such distributions received by the Fund to be taxed as dividend income to the extent of the MLP’s current or accumulated earnings and profits.

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Additional Information (Continued)

First Trust Energy Income and Growth Fund (FEN)

May 31, 2020 (Unaudited)

A reduction in the percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as a return of capital and increase that portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand, to the extent a distribution received by the Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the amount of loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.

Changes in tax laws or regulations, or interpretations thereof in the future, could adversely affect the Fund or the MLPs, MLP-related entities and other energy sector and energy utility companies in which the Fund invests.

Utility Companies Risk. Utility companies include companies producing or providing gas, electricity or water. These companies are subject to the risk of the imposition of rate caps, increased competition due to deregulation, the difficulty in obtaining an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental considerations and the capital market’s ability to absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation may negatively affect utility companies.

Valuation Risk. Market prices generally will not be available for subordinated units, direct ownership of general partner interests, restricted securities or unregistered securities of certain MLPs or MLP-related entities, and the value of such investments will ordinarily be determined based on fair valuations determined pursuant to procedures adopted by the Board of Trustees. The value of these securities typically requires more reliance on the judgment of the Sub-Advisor than that required for securities for which there is an active trading market. In addition, the Fund relies on information provided by certain MLPs, which is usually not timely, to calculate taxable income allocable to the MLP units held in the Fund’s portfolio and to determine the tax character of distributions to common shareholders. From time to time the Fund will modify its estimates and/or assumptions as new information becomes available. To the extent the Fund modifies its estimates and/or assumptions, the net asset value of the Fund would likely fluctuate.

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INVESTMENT ADVISOR

First Trust Advisors L.P.

120 East Liberty Drive, Suite 400

Wheaton, IL 60187

INVESTMENT SUB-ADVISOR

Energy Income Partners, LLC

10 Wright Street

Westport, CT 06880

TRANSFER AGENT

BNY Mellon Investment Servicing (US) Inc.

301 Bellevue Parkway

Wilmington, DE 19809

ADMINISTRATOR,
FUND ACCOUNTANT, AND
CUSTODIAN

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP

111 S. Wacker Drive

Chicago, IL 60606

LEGAL COUNSEL

Chapman and Cutler LLP

111 W. Monroe Street

Chicago, IL 60603

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

(a) Not applicable.

(b) Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

On May 28, 2020, the By-Laws of the Fund were amended and restated (the “Amended By-Laws”). The Amended By-Laws include, among other things, additional procedures to be followed by shareholders recommending nominees to the Fund’s Board of Trustees as well by the nominees themselves.  Under the Amended By-Laws, in connection with any shareholder nominating a person for election as a Trustee, such shareholder must obtain from the Secretary of the Fund a questionnaire to be completed by the nominee which must be returned and received by the Secretary at the principal executive offices of the Fund within ten (10) business days after the Secretary sends such questionnaire.  Additionally, the Amended By-Laws require that a shareholder notice of the nomination of a person for election as a Trustee must include a representation from the nominee that the nominee intends to appear in person at the shareholder meeting and, to be eligible for election as a Trustee, the shareholder nominee must be in attendance at the meeting at which such nominee is to stand for election. 

Item 11. 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a) Not applicable.

(b) Not applicable.

Item 13. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 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/ James M. Dykas
	James M. Dykas, President and Chief Executive Officer (principal executive officer)

Date: July 31, 2020

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: July 31, 2020

By (Signature and Title)*	/s/ Donald P. Swade
	Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer)

Date: July 31, 2020

^* Print the name and title of each signing officer under his or her signature.