First Trust MLP & Energy Income Fund, First Trust New Opportunities MLP & Energy Fund & First Trust Energy Income & Growth Fu...
December 26 2017 - 5:00PM
Business Wire
First Trust MLP and Energy Income Fund (NYSE: FEI), First Trust
New Opportunities MLP & Energy Fund (NYSE: FPL) and First Trust
Energy Income and Growth Fund (NYSE MKT: FEN) (the “Funds”)
announced that as of December 22, 2017, their NAV’s now reflect the
estimated impact of the “Tax Cuts and Jobs Act” (the “Act”).
The change in NAV is primarily due to the Act’s reduction of the
top corporate tax rate from 35% to 21%, reducing the Funds accrual
rate for deferred federal income taxes. The change increased FEN’s
NAV by $2.016 or approximately 8.75%, and FEI’s NAV was adjusted
higher by $0.2436 or approximately 1.72%. Each fund was impacted
differently based on the composition of their deferred tax assets
and liabilities. FPL’s NAV was not adjusted as the fund did not
have any deferred tax assets or liabilities on its books at the
time of the adjustment.
FEI is a non-diversified, closed-end management investment
company which commenced investment operations in November 2012.
FEI’s investment objective is to seek a high level of total return
with an emphasis on current distributions paid to common
shareholders.
FPL is a non-diversified, closed-end management investment
company which commenced investment operations in March 2014. FPL’s
investment objective is to seek a high level of total return with
an emphasis on current distributions paid to common
shareholders.
FEN is a non-diversified, closed-end management investment
company which commenced investment operations in June 2004. FEN’s
investment objective is to seek a high level of after-tax total
return with an emphasis on current distributions paid to
shareholders.
First Trust Advisors L.P., the Funds’ investment advisor, along
with its affiliate, First Trust Portfolios L.P., are privately-held
companies which provide a variety of investment services, including
asset management and financial advisory services, with collective
assets under management or supervision of approximately $117.3
billion as of November 30, 2017, through unit investment trusts,
exchange-traded funds, closed-end funds, mutual funds and separate
managed accounts.
Energy Income Partners, LLC (“EIP”) serves as the Funds’
investment sub-advisor and provides advisory services to a number
of investment companies and partnerships for the purpose of
investing in MLPs and other energy infrastructure securities. EIP
is one of the early investment advisors specializing in this area.
As of November 30, 2017, EIP managed or supervised approximately
$6.0 billion in client assets.
Principal Risk Factors: The Funds are subject to risks,
including the fact that each Fund is a non-diversified closed-end
management investment company. Investment return and market value
of an investment in the Funds will fluctuate. Shares, when sold,
may be worth more or less than their original cost.
Because the Funds are concentrated in securities issued by MLPs,
MLP-related entities, and other energy and utilities companies,
they will be more susceptible to adverse economic or regulatory
occurrences affecting those industries, including high interest
costs, high leverage costs, the effects of economic slowdown,
surplus capacity, increased competition, uncertainties concerning
the availability of fuel at reasonable prices, the effects of
energy conservation policies and other factors.
The Funds invest in securities of non-U.S. issuers which are
subject to higher volatility than securities of U.S. issuers.
Because the Funds invest in non-U.S. securities, you may lose money
if the local currency of a non-U.S. market depreciates against the
U.S. dollar.
The Funds’ use of derivatives may result in losses greater than
if they had not been used, may require the Funds to sell or
purchase portfolio securities at inopportune times, may limit the
amount of appreciation the Funds can realize on an investment, or
may cause the Funds to hold a security that they might otherwise
sell.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Funds are spelled out in the
prospectus, shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA
and the Internal Revenue Code. First Trust has no knowledge of and
has not been provided any information regarding any investor.
Financial advisors must determine whether particular investments
are appropriate for their clients. First Trust believes the
financial advisor is a fiduciary, is capable of evaluating
investment risks independently and is responsible for exercising
independent judgment with respect to its retirement plan
clients.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press
release contains "forward- looking statements" as defined under the
U.S. federal securities laws. Generally, the words "believe,"
"expect," "intend," "estimate," "anticipate," "project," "will" and
similar expressions identify forward-looking statements, which
generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ from the Fund’s historical experience and
its present expectations or projections indicated in any
forward-looking statements. These risks include, but are not
limited to, changes in economic and political conditions;
regulatory and legal changes; MLP industry risk; leverage risk;
valuation risk; interest rate risk; tax risk; and other risks
discussed in the Funds’ filings with the SEC. You should not place
undue reliance on forward-looking statements, which speak only as
of the date they are made. The Funds undertake no obligation to
publicly update or revise any forward-looking statements made
herein. There is no assurance that the Funds’ investment objective
will be attained.
The Funds’ daily closing New York Stock Exchange prices and net
asset values per share as well as other information, including
information relating to the Funds’ investment objectives and
policies, risk considerations and expenses, can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
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version on businesswire.com: http://www.businesswire.com/news/home/20171226005226/en/
First Trust MLP and Energy Income Fund, First Trust New
Opportunities MLP & Energy Fund and First Trust Energy Income
and Growth FundPress Inquiries: Jane Doyle, 630-765-8775Analyst
Inquiries: Jeff Margolin, 630-915-6784Broker Inquiries: Jeff
Margolin, 630-915-6784
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