First Trust New Opportunities MLP & Energy Fund (“FPL”) Attracts $440 Million in IPO
March 26 2014 - 6:52PM
Business Wire
First Trust Advisors L.P. (“First Trust”), a registered
investment adviser, is pleased to announce the initial public
offering of the First Trust New Opportunities MLP & Energy Fund
(the “Fund”), a closed-end fund. The Fund’s investment objective is
to seek a high level of total return with an emphasis on current
distributions paid to common shareholders. The Fund is expected to
commence trading on March 27, 2014 on the NYSE under
the ticker symbol “FPL.”
The Fund has initially raised approximately $440 million in its
common share offering and, should the underwriters exercise the
overallotment option in full, which may or may not occur, the Fund
will have raised approximately $503 million. First Trust is the
Fund’s investment adviser and is responsible for supervising the
Fund’s sub-advisor, monitoring the Fund’s investment portfolio,
managing the Fund’s business affairs and providing certain clerical
and bookkeeping and other administrative services. First Trust, in
consultation with the sub-advisor, will also be responsible for
determining the Fund’s overall investment strategy and overseeing
its implementation. Energy Income Partners, LLC is the Fund’s
investment sub-advisor and is primarily responsible for the
day-to-day supervision and investment strategy of, and making
investment decisions for, the Fund. The lead managers of the common
share underwriting syndicate were Morgan Stanley & Co. LLC and
Ameriprise Financial Services, Inc.
Shares of closed-end investment companies, like the Fund,
usually trade on a national stock exchange. Similar to stocks, the
Fund’s share price will fluctuate with market conditions and, at
the time of sale, may be worth more or less than the original
investment. Shares of closed-end Funds often trade at a discount to
their net asset value.
Investors should consider the investment objective and policies,
risk considerations, charges and expenses of the Fund carefully
before investing. For a prospectus which contains this and other
information relevant to an investment in the Fund, please contact
First Trust Portfolios L.P. at 1-800-621-1675. Investors should
read the prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not
soliciting an offer to buy securities in any jurisdiction where the
offer or sale is not permitted.
Risk Considerations:
The Fund is subject to risks, including the fact that it is a
newly organized closed-end management investment company with no
operating history. It is designed for long-term investing and not
as a vehicle for trading. Shares of closed-end investment companies
frequently trade at a discount from their net asset value ("NAV").
The Fund cannot predict whether or when its common shares will
trade at, below or above NAV or at, below or above the initial
public offering price.
The Fund is subject to various risks, including no operating
history risk, investment and market risk, market discount from net
asset value risk, management risk, potential conflicts of interest
risk, master limited partnerships (“MLP”) risk, investment
concentration risk, industry specific risk, energy utilities
companies risk, cash flow risk, MLP tax risk, deferred tax risk,
tax law change risk, non-U.S. securities risk, delay in investing
the proceeds risk, equity securities risk, investment in initial
public offerings risk, Canadian income equities risk, debt
securities risk, below investment grade securities risk, leverage
risk, covered call options risk, interest rate swaps risk,
competition risk, restricted securities risk, liquidity risk,
valuation risk, interest rate risk, recent market and economic
developments risk, non-diversification risk, anti-takeover
provisions risk, inflation risk, and secondary market risk for the
Fund’s common shares. There can be no assurance that the Fund will
achieve its investment objective or earn a return on its
assets.
About First Trust Advisors L.P.
First Trust Advisors L.P., 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 $86 billion as of
February 28, 2014 through unit investment trusts, exchange-traded
funds, closed-end funds, mutual funds and separate managed
accounts.
About Energy Income Partners, LLC
Energy Income Partners, LLC (“EIP”) serves as the Fund’s
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 February 28, 2014, EIP managed or supervised approximately
$4.2 billion in client assets.
First Trust New Opportunities MLP & Energy FundPress
Inquiries: Jane Doyle, 630-765-8775Analyst Inquiries: Jeff
Margolin, 630-915-6784Broker Inquiries: Jeff Margolin,
630-915-6784
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