First Trust New Opportunities MLP & EnergyFind Ratings Reports
- Last Ratings Update:06/30/2016
- Price as of 06/30/2016 :$14.13
- Net Assets:$347.55 Million
- Peer Rank:4 of 121
- Investment Rating:B-
We rate First Trust New Opptys MLP & Energy at B-. This overall rating indicates it is among the top 10% of all closed end funds in its peer group. Positive factors that influence this rating include a low price volatility. The fund may be considered for investors seeking a Sector - Energy/Natural Res strategy.
POSITIVES AND RISKS
New Fund off to poor start in the last year. The First Trust New Opptys MLP & Energy has returned an annual rate of -7.23% since inception. More recently, the fund has generated a total return of -0.21% in the last year, 39.14% in the last six months, and 22.98% in the last three months. How does that compare to other equity funds? In the last year, it has outperformed 49% of them for the period ending 6/30/2016. On a year to date basis, FPL has returned 39.14%.
Downside risk has been above average. FPL has a draw down risk of -47.64%, which is the largest price decline experienced since the inception of the fund. This fund has a one year standard deviation of 36.5%. This fund has experienced excessive volatility in its monthly performance over the last 12 months. As of 6/30/2016, the fund was trading at a price of $14.13, which is 1.7% below its 52-week high of $14.38 and 15.9% above its 52-week low of $12.19.
High expense ratio hinders performance. On total assets of $347.55 million, FPL maintains a high expense ratio compared to its Sector - Energy/Natural Res peers of 2.24% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As FPL is a closed end fund, it has no front end or back end load.