UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22902
First Trust New Opportunities MLP & Energy Fund
(Exact name of registrant as specified in charter)
10 Westport Road, Suite C101a
Wilton, CT 06897
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: 630-765-8000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
1 | |
2 | |
3 | |
6 | |
9 | |
10 | |
11 | |
12 | |
13 | |
14 | |
22 |
Fund Statistics | |
Symbol on New York Stock Exchange | FPL |
Common Share Price | $6.09 |
Common Share Net Asset Value (“NAV”) | $7.05 |
Premium (Discount) to NAV | (13.62)% |
Net Assets Applicable to Common Shares | $171,262,076 |
Current Distribution per Common Share(1) | $0.0375 |
Current Annualized Distribution per Common Share | $0.4500 |
Current Distribution Rate on Common Share Price(2) | 7.39% |
Current Distribution Rate on NAV(2) | 6.38% |
Performance | ||||
Average Annual Total Returns | ||||
6 Months Ended 4/30/22 | 1 Year Ended 4/30/22 | 5 Years Ended 4/30/22 | Inception (3/26/14) to 4/30/22 | |
Fund Performance(3) | ||||
NAV | 13.71% | 21.16% | -2.71% | -2.83% |
Market Value | 9.06% | 17.37% | -5.89% | -5.11% |
Index Performance | ||||
S&P 500® Index | -9.65% | 0.21% | 13.64% | 12.55% |
Alerian MLP Total Return Index | 13.70% | 27.34% | 0.17% | -1.79% |
Industry Classification | % of Total Investments |
Petroleum Product Transmission | 31.0% |
Natural Gas Transmission | 24.2 |
Electric Power & Transmission | 23.2 |
Crude Oil Transmission | 10.8 |
Natural Gas Gathering & Processing | 4.0 |
Propane | 1.4 |
Other | 5.4 |
Total | 100.0% |
Top Ten Holdings | % of Total Investments |
Enterprise Products Partners, L.P. | 8.3% |
Magellan Midstream Partners, L.P. | 7.5 |
Energy Transfer, L.P. | 6.5 |
Cheniere Energy Partners, L.P. | 6.2 |
Williams (The) Cos., Inc. | 5.2 |
TC Energy Corp. | 4.6 |
DT Midstream, Inc. | 4.6 |
MPLX, L.P. | 3.8 |
Hess Midstream, L.P., Class A | 3.5 |
ONEOK, Inc. | 3.0 |
Total | 53.2% |
Fund Allocation | % of Net Assets |
Common Stocks | 64.9% |
Master Limited Partnerships | 58.1 |
Call Options Written | (0.1) |
Outstanding Loan | (24.2) |
Net Other Assets and Liabilities | 1.3 |
Total | 100.0% |
(1) | Most recent distribution paid or declared through April 30, 2022. Subject to change in the future. |
(2) | Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of April 30, 2022. Subject to change in the future. |
(3) | Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
Average Annual Total Returns | ||||
6 Months Ended 4/30/22 | 1 Year Ended 4/30/22 | 5 Years Ended 4/30/22 | Inception (3/26/14) to 4/30/22 | |
Fund Performance1 | ||||
NAV | 13.71% | 21.16% | -2.71% | -2.83% |
Market Value | 9.06% | 17.37% | -5.89% | -5.11% |
Index Performance | ||||
S&P 500® Index | -9.65% | 0.21% | 13.64% | 12.55% |
Alerian MLP Total Return Index | 13.70% | 27.34% | 0.17% | -1.79% |
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.
1 | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per Common Share for NAV returns and changes in Common Share price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. |
Shares | Description | Value | ||
COMMON STOCKS – 64.9% | ||||
Construction & Engineering – 0.6% | ||||
8,600 | Quanta Services, Inc. | $997,428 | ||
Electric Utilities – 12.8% | ||||
32,400 | Alliant Energy Corp. | 1,905,444 | ||
27,070 | American Electric Power Co., Inc. (a) | 2,682,908 | ||
21,933 | Constellation Energy Corp. (b) | 1,298,653 | ||
4,800 | Duke Energy Corp. | 528,768 | ||
4,300 | Emera, Inc. (CAD) (b) | 207,628 | ||
247,250 | Enel S.p.A., ADR | 1,592,290 | ||
5,400 | Eversource Energy | 471,960 | ||
65,800 | Exelon Corp. (a) | 3,078,124 | ||
4,400 | Fortis, Inc. (CAD) (b) | 214,100 | ||
6,200 | Iberdrola S.A., ADR | 286,626 | ||
12,700 | IDACORP, Inc. | 1,335,786 | ||
13,480 | NextEra Energy, Inc. (a) | 957,350 | ||
4,490 | Orsted A/S, ADR | 166,983 | ||
111,620 | PPL Corp. (a) (b) | 3,159,962 | ||
40,480 | Southern (The) Co. (a) | 2,970,827 | ||
14,800 | Xcel Energy, Inc. | 1,084,248 | ||
21,941,657 | ||||
Gas Utilities – 9.4% | ||||
195,620 | AltaGas Ltd. (CAD) (b) | 4,473,838 | ||
17,900 | Atmos Energy Corp. (b) | 2,029,860 | ||
62,400 | National Fuel Gas Co. | 4,376,112 | ||
35,670 | New Jersey Resources Corp. (b) | 1,539,517 | ||
19,200 | ONE Gas, Inc. | 1,619,904 | ||
5,825 | Southwest Gas Holdings, Inc. | 513,241 | ||
43,240 | UGI Corp. | 1,483,132 | ||
16,035,604 | ||||
Independent Power & Renewable Electricity Producers – 0.9% | ||||
19,300 | AES (The) Corp. (b) | 394,106 | ||
33,390 | Clearway Energy, Inc., Class A (b) | 948,944 | ||
8,000 | EDP Renovaveis S.A. (EUR) (c) | 189,337 | ||
1,532,387 | ||||
Multi-Utilities – 8.4% | ||||
60,000 | Atco Ltd., Class I (CAD) (b) | 2,137,703 | ||
57,670 | CenterPoint Energy, Inc. (a) | 1,765,279 | ||
16,450 | CMS Energy Corp. (b) | 1,129,950 | ||
12,500 | Dominion Energy, Inc. (b) | 1,020,500 | ||
17,380 | DTE Energy Co. (b) | 2,277,475 | ||
52,970 | Public Service Enterprise Group, Inc. (a) | 3,689,890 | ||
12,800 | Sempra Energy (a) | 2,065,408 | ||
3,130 | WEC Energy Group, Inc. | 313,157 | ||
14,399,362 | ||||
Oil, Gas & Consumable Fuels – 32.4% | ||||
9,410 | Cheniere Energy, Inc. | 1,277,972 | ||
181,040 | DT Midstream, Inc. (b) | 9,730,900 | ||
103,085 | Enbridge, Inc. (a) | 4,498,629 | ||
130,664 | Keyera Corp. (CAD) (b) | 3,241,553 | ||
303,998 | Kinder Morgan, Inc. | 5,517,564 | ||
100,006 | ONEOK, Inc. (b) | 6,333,380 | ||
79,000 | Shell PLC, ADR | 4,220,970 |
Shares | Description | Value | ||
COMMON STOCKS (Continued) | ||||
Oil, Gas & Consumable Fuels (Continued) | ||||
184,109 | TC Energy Corp. (a) (b) | $9,739,366 | ||
320,178 | Williams (The) Cos., Inc. (a) | 10,978,904 | ||
55,539,238 | ||||
Semiconductors & Semiconductor Equipment – 0.1% | ||||
1,100 | Enphase Energy, Inc. (d) | 177,540 | ||
Water Utilities – 0.3% | ||||
3,200 | American Water Works Co., Inc. | 493,056 | ||
Total Common Stocks | 111,116,272 | |||
(Cost $98,010,328) | ||||
Units | Description | Value | ||
MASTER LIMITED PARTNERSHIPS – 58.1% | ||||
Chemicals – 3.1% | ||||
197,848 | Westlake Chemical Partners, L.P. (b) | 5,391,358 | ||
Gas Utilities – 0.9% | ||||
88,500 | Suburban Propane Partners, L.P. (b) | 1,486,800 | ||
Independent Power & Renewable Electricity Producers – 1.7% | ||||
43,819 | NextEra Energy Partners, L.P. (b) (e) | 2,920,974 | ||
Oil, Gas & Consumable Fuels – 52.4% | ||||
242,269 | Cheniere Energy Partners, L.P. (b) | 13,024,382 | ||
30,000 | DCP Midstream, L.P. | 1,026,000 | ||
1,232,960 | Energy Transfer, L.P. (b) | 13,661,197 | ||
677,564 | Enterprise Products Partners, L.P. (b) | 17,555,683 | ||
253,830 | Hess Midstream, L.P., Class A (b) (e) | 7,465,140 | ||
171,190 | Holly Energy Partners, L.P. (b) | 2,932,485 | ||
326,819 | Magellan Midstream Partners, L.P. (b) | 15,834,381 | ||
245,000 | MPLX, L.P. (b) | 7,928,200 | ||
582,320 | Plains All American Pipeline, L.P. (b) | 6,032,835 | ||
304,480 | Shell Midstream Partners, L.P. (b) | 4,302,302 | ||
89,762,605 | ||||
Total Master Limited Partnerships | 99,561,737 | |||
(Cost $82,869,760) | ||||
Total Investments – 123.0% | 210,678,009 | |||
(Cost $180,880,088) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN – (0.1)% | ||||||||||
(160) | American Electric Power Co., Inc. | $(1,585,760) | $105.00 | 05/20/22 | (4,800) | |||||
(570) | CenterPoint Energy, Inc. | (1,744,770) | 32.00 | 05/20/22 | (17,100) | |||||
(1,030) | Enbridge, Inc. | (4,494,920) | 47.50 | 05/20/22 | (10,300) | |||||
(658) | Exelon Corp. | (3,078,124) | 50.00 | 05/20/22 | (11,186) | |||||
(133) | NextEra Energy, Inc. | (944,566) | 90.00 | 05/20/22 | (665) | |||||
(800) | PPL Corp. | (2,264,800) | 30.00 | 06/17/22 | (24,000) | |||||
(504) | Public Service Enterprise Group, Inc. | (3,510,864) | 75.00 | 05/20/22 | (8,568) | |||||
(128) | Sempra Energy | (2,065,408) | 175.00 | 05/20/22 | (5,760) | |||||
(390) | Southern (The) Co. | (2,862,210) | 75.00 | 05/20/22 | (35,100) | |||||
(1,400) | TC Energy Corp. | (7,406,000) | 60.00 | 05/20/22 | (11,200) |
Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
CALL OPTIONS WRITTEN (Continued) | ||||||||||
(3,201) | Williams (The) Cos., Inc. | $(10,976,229) | $37.00 | 05/20/22 | $(76,824) | |||||
Total Call Options Written | (205,503) | |||||||||
(Premiums received $449,233) |
Outstanding Loan – (24.2)% | (41,400,000) | ||
Net Other Assets and Liabilities – 1.3% | 2,189,570 | ||
Net Assets – 100.0% | $171,262,076 |
(a) | All or a portion of this security’s position represents cover for outstanding options written. |
(b) | All or a portion of this security serves as collateral on the outstanding loan. |
(c) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures adopted by the Fund’s Board of Trustees and in accordance with provisions of the Investment Company Act of 1940, as amended. At April 30, 2022, the security noted as such is valued at $189,337 or 0.1% of net assets. The security is fair valued using a factor provided by a third-party pricing service due to the change in value between the foreign markets’ close and the New York Stock Exchange close exceeding a certain threshold. On days when this threshold is not exceeded, the security is typically valued at the last sale price on the exchange on which it is principally traded. |
(d) | Non-income producing security. |
(e) | This security is taxed as a “C” corporation for federal income tax purposes. |
ADR | American Depositary Receipt |
CAD | Canadian Dollar |
EUR | Euro |
ASSETS TABLE | ||||
Total Value at 4/30/2022 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Common Stocks: | ||||
Independent Power & Renewable Electricity Producers | $ 1,532,387 | $ 1,343,050 | $ 189,337 | $ — |
Other industry categories* | 109,583,885 | 109,583,885 | — | — |
Master Limited Partnerships* | 99,561,737 | 99,561,737 | — | — |
Total Investments | $ 210,678,009 | $ 210,488,672 | $ 189,337 | $— |
LIABILITIES TABLE | ||||
Total Value at 4/30/2022 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Call Options Written | $ (205,503) | $ (205,503) | $ — | $ — |
* | See Portfolio of Investments for industry breakout. |
ASSETS: | |
Investments, at value (Cost $180,880,088) | $ 210,678,009 |
Cash | 1,296,691 |
Foreign currency (Cost $613) | 611 |
Receivables: | |
Dividends | 1,062,896 |
Investment securities sold | 147,678 |
Income taxes | 44,297 |
Dividend reclaims | 1,642 |
Prepaid expenses | 22,215 |
Total Assets | 213,254,039 |
LIABILITIES: | |
Outstanding loan | 41,400,000 |
Options written, at value (Premiums received $449,233) | 205,503 |
Payables: | |
Investment advisory fees | 181,681 |
Audit and tax fees | 87,387 |
Interest and fees on loan | 86,047 |
Administrative fees | 9,379 |
Transfer agent fees | 7,731 |
Legal fees | 5,207 |
Shareholder reporting fees | 3,179 |
Custodian fees | 3,042 |
Trustees’ fees and expenses | 1,547 |
Financial reporting fees | 771 |
Other liabilities | 489 |
Total Liabilities | 41,991,963 |
NET ASSETS | $171,262,076 |
NET ASSETS consist of: | |
Paid-in capital | $ 308,576,096 |
Par value | 242,812 |
Accumulated distributable earnings (loss) | (137,556,832) |
NET ASSETS | $171,262,076 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) | $7.05 |
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized) | 24,281,161 |
INVESTMENT INCOME: | ||
Dividends (net of foreign withholding tax of $102,517) | $ 1,920,562 | |
Interest | 40 | |
Total investment income | 1,920,602 | |
EXPENSES: | ||
Investment advisory fees | 1,010,989 | |
Interest and fees on loan | 500,868 | |
Audit and tax fees | 49,694 | |
Administrative fees | 49,404 | |
Shareholder reporting fees | 29,160 | |
Transfer agent fees | 11,798 | |
Trustees’ fees and expenses | 9,556 | |
Custodian fees | 9,407 | |
Listing expense | 8,061 | |
Legal fees | 5,666 | |
Financial reporting fees | 4,625 | |
Other | 12,537 | |
Total expenses | 1,701,765 | |
NET INVESTMENT INCOME (LOSS) BEFORE TAXES | 218,837 | |
Current federal income tax benefit (expense) | 338,647 | |
Current state income tax benefit (expense) | 12,879 | |
Deferred federal income tax benefit (expense) | 3,789,210 | |
Deferred state income tax benefit (expense) | 226,075 | |
Total income tax benefit (expense) | 4,366,811 | |
NET INVESTMENT INCOME (LOSS) | 4,585,648 | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
Net realized gain (loss) before taxes on: | ||
Investments | 1,520,886 | |
Written options contracts | 101,705 | |
Foreign currency transactions | (9,990) | |
Net realized gain (loss) before taxes | 1,612,601 | |
Current federal income tax benefit (expense) | (338,647) | |
Current state income tax benefit (expense) | (20,205) | |
Total income tax benefit (expense) | (358,852) | |
Net realized gain (loss) on investments, written options and foreign currency transactions | 1,253,749 | |
Net change in unrealized appreciation (depreciation) before taxes on: | ||
Investments | 18,219,993 | |
Written options contracts | 243,730 | |
Foreign currency translation | (286) | |
Net change in unrealized appreciation (depreciation) before taxes | 18,463,437 | |
Deferred federal income tax benefit (expense) | (3,789,210) | |
Deferred state income tax benefit (expense) | (226,075) | |
Total income tax benefit (expense) | (4,015,285) | |
Net change in unrealized appreciation (depreciation) on investments, written options and foreign currency translation | 14,448,152 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | 15,701,901 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ 20,287,549 |
Six Months Ended 4/30/2022 (Unaudited) | Year Ended 10/31/2021 | ||
OPERATIONS: | |||
Net investment income (loss) | $ 4,585,648 | $ 12,310,928 | |
Net realized gain (loss) | 1,253,749 | 16,482,451 | |
Net change in unrealized appreciation (depreciation) | 14,448,152 | 24,677,743 | |
Net increase (decrease) in net assets resulting from operations | 20,287,549 | 53,471,122 | |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations | (5,542,445) | (11,232,572) | |
CAPITAL TRANSACTIONS: | |||
Repurchase of Common Shares * | (2,640,487) | (4,263,921) | |
Net increase (decrease) in net assets resulting from capital transactions | (2,640,487) | (4,263,921) | |
Total increase (decrease) in net assets | 12,104,617 | 37,974,629 | |
NET ASSETS: | |||
Beginning of period | 159,157,459 | 121,182,830 | |
End of period | $ 171,262,076 | $ 159,157,459 | |
CAPITAL TRANSACTIONS were as follows: | |||
Common Shares at beginning of period | 24,720,592 | 25,623,514 | |
Common Shares repurchased * | (439,431) | (902,922) | |
Common Shares at end of period | 24,281,161 | 24,720,592 |
* | On September 15, 2020, the Fund commenced a share repurchase program. The program originally expired on March 15, 2021, but the Board of Trustees of the Fund has subsequently authorized the continuation of the Fund’s share repurchase program until March 15, 2023. For the six months ended April 30, 2022 and the fiscal year ended October 31, 2021, the Fund repurchased 439,431 and 902,922 Common Shares, respectively, at a weighted-average discount of 12.73% and 14.72%, respectively, from net asset value per share. The Fund expects to continue the share repurchase program until the earlier of (i) the repurchase of an additional 862,909 Common Shares (for an aggregate of 1,232,539) or (ii) March 15, 2023. |
Cash flows from operating activities: | ||
Net increase (decrease) in net assets resulting from operations | $20,287,549 | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | ||
Purchases of investments | (67,361,315) | |
Sales of investments | 70,248,765 | |
Proceeds from written options | 973,386 | |
Return of capital received from investment in MLPs | 3,687,380 | |
Net realized gain/loss on investments and written options | (1,622,591) | |
Net change in unrealized appreciation/depreciation on investments and written options | (18,463,723) | |
Changes in assets and liabilities: | ||
Decrease in income taxes receivable | 32,813 | |
Increase in dividend reclaims receivable | (108) | |
Increase in dividends receivable | (354,463) | |
Increase in prepaid expenses | (15,535) | |
Increase in interest and fees payable on loan | 2,696 | |
Increase in investment advisory fees payable | 13,107 | |
Decrease in audit and tax fees payable | (54,470) | |
Increase in legal fees payable | 1,084 | |
Decrease in shareholder reporting fees payable | (12,841) | |
Increase in administrative fees payable | 229 | |
Decrease in custodian fees payable | (2,810) | |
Increase in transfer agent fees payable | 4,010 | |
Increase in trustees’ fees and expenses payable | 290 | |
Increase in other liabilities payable | 427 | |
Cash provided by operating activities | $7,363,880 | |
Cash flows from financing activities: | ||
Repurchase of Common Shares | (2,640,487) | |
Distributions to Common Shareholders from investment operations | (5,542,445) | |
Proceeds from borrowing | 1,000,000 | |
Cash used in financing activities | (7,182,932) | |
Increase in cash and foreign currency (a) | 180,948 | |
Cash at beginning of period | 1,116,354 | |
Cash and foreign currency at end of period | $1,297,302 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest and fees | $498,172 | |
Cash paid during the period for taxes | $— |
(a) | Includes net change in unrealized appreciation (depreciation) on foreign currency of $(286). |
Six Months Ended 4/30/2022 (Unaudited) | Year Ended October 31, | |||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||
Net asset value, beginning of period | $ 6.44 | $ 4.73 | $ 9.41 | $ 9.43 | $ 11.95 | $ 12.92 | ||||||
Income from investment operations: | ||||||||||||
Net investment income (loss) | 0.19 | 0.48 | (1.07) | 0.12 | (0.28) | (0.02) | ||||||
Net realized and unrealized gain (loss) | 0.63 | 1.65 | (2.93) | 0.76 (a) | (1.04) (a) | 0.30 | ||||||
Total from investment operations | 0.82 | 2.13 | (4.00) | 0.88 | (1.32) | 0.28 | ||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | — | (0.03) | — | — | — | — | ||||||
Net realized gain | (0.23) | (0.42) | — | (0.25) | — | — | ||||||
Return of capital | — | — | (0.68) | (0.65) | (1.20) | (1.26) | ||||||
Total distributions paid to Common Shareholders | (0.23) | (0.45) | (0.68) | (0.90) | (1.20) | (1.26) | ||||||
Premiums from shares sold in at the market offering | — | — | — | — | — | 0.01 | ||||||
Common Share repurchases | 0.02 | 0.03 | 0.00 (b) | — | — | — | ||||||
Net asset value, end of period | $7.05 | $6.44 | $4.73 | $9.41 | $9.43 | $11.95 | ||||||
Market value, end of period | $6.09 | $5.80 | $3.66 | $8.66 | $8.65 | $11.91 | ||||||
Total return based on net asset value (c) | 13.71% | 48.22% | (43.24)% | 10.34% (a) | (11.66)% (a) | 1.99% | ||||||
Total return based on market value (c) | 9.06% | 72.51% | (52.28)% | 10.70% | (18.70)% | 2.52% | ||||||
Net assets, end of period (in 000’s) | $ 171,262 | $ 159,157 | $ 121,183 | $ 241,815 | $ 242,226 | $ 300,916 | ||||||
Portfolio turnover rate | 33% | 126% | 113% | 74% | 64% | 50% | ||||||
Ratios of expenses to average net assets: | ||||||||||||
Including current and deferred income taxes (d) | 2.11% (e) | 2.34% | 5.51% (f) | 2.89% | 2.81% | 2.71% | ||||||
Excluding current and deferred income taxes | 2.10% (e) | 2.14% | 5.34% (f) | 2.86% | 2.79% | 2.70% | ||||||
Excluding current and deferred income taxes and interest expense | 1.48% (e) | 1.50% | 1.58% | 1.58% | 1.57% | 1.58% | ||||||
Ratios of net investment income (loss) to average net assets: | ||||||||||||
Net investment income (loss) ratio before tax expenses | 0.27% (e) | (0.13)% | (3.40)% (f) | (0.90)% | (0.40)% | (0.67)% | ||||||
Net investment income (loss) ratio including tax expenses (d) | 0.26% (e) | (0.32)% | (3.57)% (f) | (0.93)% | (0.41)% | (0.68)% | ||||||
Indebtedness: | ||||||||||||
Total loan outstanding (in 000’s) | $ 41,400 | $ 40,400 | $ 33,400 | $ 89,000 | $ 87,500 | $ 106,500 | ||||||
Asset coverage per $1,000 of indebtedness (g) | $ 5,137 | $ 4,940 | $ 4,628 | $ 3,717 | $ 3,768 | $ 3,826 |
(a) | During the fiscal years ended October 31, 2019 and 2018, the Fund received reimbursements from the sub-advisor in the amounts of $228 and $12,533, respectively, in connection with trade errors, which represent less than $0.01 per share. Since the sub-advisor reimbursed the Fund, there was no effect on the Fund’s total return. |
(b) | Amount represents less than $0.01 per share. |
(c) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(d) | Includes current and deferred income taxes associated with each component of the Statement of Operations. |
(e) | Annualized. |
(f) | This ratio includes breakage fees. If breakage fees had not been included, these expense ratios would have been 2.81% lower and the net investment income ratios would have been 2.81% higher. |
(g) | Calculated by subtracting the Fund’s total liabilities (not including the loan outstanding) from the Fund’s total assets, and dividing by the outstanding loan balance in 000’s. |
1) | the type of security; |
2) | the size of the holding; |
3) | the initial cost of the security; |
4) | transactions in comparable securities; |
5) | price quotes from dealers and/or third-party pricing services; |
6) | relationships among various securities; |
7) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
8) | an analysis of the issuer’s financial statements; and |
9) | the existence of merger proposals or tender offers that might affect the value of the security. |
1) | the value of similar foreign securities traded on other foreign markets; |
2) | ADR trading of similar securities; |
3) | closed-end fund or exchange-traded fund trading of similar securities; |
4) | foreign currency exchange activity; |
5) | the trading prices of financial products that are tied to baskets of foreign securities; |
6) | factors relating to the event that precipitated the pricing problem; |
7) | whether the event is likely to recur; and |
8) | whether the effects of the event are isolated or whether they affect entire markets, countries or regions. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Current federal income tax benefit (expense) | $ — |
Current state income tax benefit (expense) | (7,326) |
Current foreign income tax benefit (expense) | — |
Deferred federal income tax benefit (expense) | — |
Deferred state income tax benefit (expense) | — |
Total income tax benefit (expense) | $ (7,326) |
Federal net operating loss | $2,510,437 |
State net operating loss | 2,361,755 |
State income taxes | — |
Federal and state capital loss carryforward | 20,692,308 |
Other | — |
Total deferred tax assets | 25,564,500 |
Less: federal valuation allowance | (11,820,604) |
Less: state valuation allowance | (3,555,536) |
Net deferred tax assets | $10,188,360 |
Deferred tax liabilities: | |
Unrealized gains on investment securities | $(10,188,360) |
Total deferred tax liabilities | (10,188,360) |
Total net deferred tax liabilities | $— |
Application of statutory income tax rate | $ 4,261,924 |
State income taxes, net | 55,026 |
Change in valuation allowance | (4,189,620) |
Current year change in tax rate | — |
Other | (120,004) |
Total | $ 7,326 |
Fiscal Year | Amount Generated | Prior Year Amount Utilized | Current Year Amount Utilized | Amount Expired | Remaining | Expiration | ||||||
2016 | $ 99,372,781 | $ (8,861,447) | $ (25,393,239) | $ (65,118,095) | $ — | 10/31/2021 | ||||||
2017 | 7,889,835 | — | — | — | 7,889,835 | 10/31/2022 | ||||||
2018 | 7,227,948 | — | — | — | 7,227,948 | 10/31/2023 | ||||||
2020 | 76,657,602 | — | — | — | 76,657,602 | 10/31/2025 | ||||||
$ 191,148,166 | $ (8,861,447) | $ (25,393,239) | $ (65,118,095) | $ 91,775,385 |
Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||
$165,130,340 | $47,101,188 | $(1,759,022) | $45,342,166 |
Asset Derivatives | Liability Derivatives | |||||||||
Derivative Instrument | Risk Exposure | Statement of Assets and Liabilities Location | Value | Statement of Assets and Liabilities Location | Value | |||||
Written Options | Equity Risk | — | — | Options written, at value | $ 205,503 |
Statement of Operations Location | |
Equity Risk Exposure | |
Net realized gain (loss) before taxes on written options contracts | $101,705 |
Net change in unrealized appreciation (depreciation) before taxes on written options contracts | 243,730 |
(1) | If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date. |
(2) | If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments. |
FUND ACCOUNTANT,
AND CUSTODIAN
PUBLIC ACCOUNTING FIRM
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | There has been no change, as of the date of this filing, in any of the portfolios managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
Month #1 (11/01/2021– 11/30/2021) | 0 | 0 | 0 | 0
|
Month #2 (12/01/2021– 12/31/2021) | 69,801 | 5.30 | 1,064,590 | 955,474 |
Month #3 (01/01/2022– 01/31/2022) | 0 | 0 | 0 | 0 |
Month #4 (02/01/2022– 02/28/2022) | 0 | 0 | 0 | 0 |
Month #5 (03/01/2022– 03/31/2022) | 245,816 | 5.99 | 1,310,406 | 986,723 |
Month #6 (04/01/2022– 04/30/2022) | 123,814 | 12.86 | 1,434,220 | 862,909 |
Total | 439,431 | $6.01 | 1,434,220 | 862,909 |
On September 15, 2020, the Fund commenced a share repurchase program. The program originally expired on March 15, 2021, but the Board of Trustees of the Fund has subsequently authorized the continuation of the Fund’s share repurchase program until March 15, 2023. For the six-months ended April 30, 2022 and the fiscal year ended October 31, 2021, the Fund repurchased 439,431 and 902,922 Common Shares, respectively, at a weighted-average discount of 12.73% and 14.72%, respectively, from net asset value per share. The Fund expects to continue the share repurchase program until the earlier of (i) the repurchase of an additional 862,909 Common Shares (for an aggregate of 1,232,539) or (ii) March 15, 2023.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | First Trust New Opportunities MLP & Energy Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | July 1, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | July 1, 2022 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | July 1, 2022 |
* Print the name and title of each signing officer under his or her signature.