First Trust New Opportunities MLP & EnergyFind Ratings Reports
- Last Ratings Update:09/30/2016
- Price as of 09/30/2016 :$13.67
- Net Assets:$295.79 Million
- Peer Rank:9 of 119
- Investment Rating:C+
We rate First Trust New Opptys MLP & Energy at C+. 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 good start in the last year. The First Trust New Opptys MLP & Energy has returned an annual rate of -6.88% since inception. More recently, the fund has generated a total return of 12.76% in the last year, 21.77% in the last six months, and -2.04% in the last three months. How does that compare to other equity funds? In the last year, it has outperformed 51% of them for the period ending 9/30/2016. On a year to date basis, FPL has returned 37.77%.
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 30.9%. This fund has experienced excessive volatility in its monthly performance over the last 12 months. As of 9/30/2016, the fund was trading at a price of $13.67, which is 1.4% below its 52-week high of $13.87 and 7.6% above its 52-week low of $12.71.
High expense ratio hinders performance. On total assets of $295.79 million, FPL maintains a high expense ratio compared to its Sector - Energy/Natural Res peers of 2.79% 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.