First Trust New Opportunities MLP & EnergyFind Ratings Reports
- Last Ratings Update:07/31/2016
- Price as of 07/31/2016 :$13.82
- Net Assets:$347.55 Million
- Peer Rank:6 of 122
- 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 poor start in the last year. The First Trust New Opptys MLP & Energy has returned an annual rate of -7.55% since inception. More recently, the fund has generated a total return of -0.81% in the last year, 44.41% in the last six months, and 7.78% in the last three months. How does that compare to other equity funds? In the last year, it has outperformed 33% of them for the period ending 7/31/2016. On a year to date basis, FPL has returned 37.06%.
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 36.4%. This fund has experienced excessive volatility in its monthly performance over the last 12 months. As of 7/31/2016, the fund was trading at a price of $13.82, which is 4.7% below its 52-week high of $14.50 and 2.7% above its 52-week low of $13.46.
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.