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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| First Trust New Opportunities MLP and Energy Fund | NYSE:FPL | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.76 | 0 | 00:00:00 |
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
(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, 2023
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 | |
| 7 | |
| 11 | |
| 12 | |
| 13 | |
| 14 | |
| 15 | |
| 16 | |
| 24 |
| Performance | ||||
| Average Annual Total Returns | ||||
| 6 Months Ended 4/30/23 | 1 Year Ended 4/30/23 | 5 Years Ended 4/30/23 | Inception (3/26/14) to 4/30/23 | |
| Fund Performance(3) | ||||
| NAV | 3.91% | 8.75% | 2.46% | -1.61% |
| Market Value | 2.57% | 6.27% | -3.16% | -3.92% |
| Index Performance | ||||
| S&P 500® Index | 8.63% | 2.66% | 11.45% | 11.42% |
| Alerian MLP Total Return Index | 1.98% | 16.78% | 6.12% | 0.10% |
| (1) | Most recent distribution paid through April 30, 2023. Subject to change in the future. |
| (2) | Distribution rates are calculated by annualizing the most recent distribution paid through the report date and then dividing by Common Share Price or NAV, as applicable, as of April 30, 2023. 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 4/30/23 | 1 Year Ended 4/30/23 | 5 Years Ended 4/30/23 | Inception (3/26/14) to 4/30/23 | |
| Fund Performance(1) | ||||
| NAV | 3.91% | 8.75% | 2.46% | -1.61% |
| Market Value | 2.57% | 6.27% | -3.16% | -3.92% |
| Index Performance | ||||
| S&P 500® Index | 8.63% | 2.66% | 11.45% | 11.42% |
| Alerian MLP Total Return Index | 1.98% | 16.78% | 6.12% | 0.10% |
| (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. |
| (2) | Source: FactSet, Bloomberg. |
| (3) | Source: BP Statistical Review of World Energy – June 2022. |
| (4) | Source: World Bank, EIP Estimates. |
| (5) | There is no guarantee that any investment strategy will successfully protect against inflation or will even be profitable. |
| Shares | Description | Value | ||
| COMMON STOCKS – 62.0% | ||||
| Electric Utilities – 12.5% | ||||
| 32,400 | Alliant Energy Corp. (a) | $1,786,536 | ||
| 35,270 | American Electric Power Co., Inc. (a) | 3,259,654 | ||
| 13,933 | Constellation Energy Corp. | 1,078,414 | ||
| 4,800 | Duke Energy Corp. | 474,624 | ||
| 7,300 | Emera, Inc. (CAD) (b) | 310,621 | ||
| 247,250 | Enel S.p.A., ADR | 1,673,883 | ||
| 20,200 | Eversource Energy (b) | 1,567,722 | ||
| 65,800 | Exelon Corp. (a) | 2,792,552 | ||
| 4,400 | Fortis, Inc. (CAD) (b) | 193,199 | ||
| 6,200 | Iberdrola S.A., ADR | 322,338 | ||
| 10,200 | IDACORP, Inc. | 1,133,424 | ||
| 13,480 | NextEra Energy, Inc. (a) | 1,032,972 | ||
| 6,490 | Orsted A/S, ADR | 193,727 | ||
| 58,520 | PPL Corp. (a) | 1,680,694 | ||
| 31,080 | Southern (The) Co. | 2,285,934 | ||
| 14,800 | Xcel Energy, Inc. (a) | 1,034,668 | ||
| 20,820,962 | ||||
| Energy Equipment & Services – 0.8% | ||||
| 133,800 | Archrock, Inc. (b) | 1,376,802 | ||
| Gas Utilities – 7.0% | ||||
| 54,620 | AltaGas Ltd. (CAD) (b) | 955,452 | ||
| 17,900 | Atmos Energy Corp. | 2,043,106 | ||
| 88,900 | National Fuel Gas Co. (b) | 4,969,510 | ||
| 35,670 | New Jersey Resources Corp. | 1,841,999 | ||
| 19,200 | ONE Gas, Inc. | 1,477,440 | ||
| 12,840 | UGI Corp. | 435,019 | ||
| 11,722,526 | ||||
| Independent Power & Renewable Electricity Producers – 1.2% | ||||
| 37,300 | AES (The) Corp. (a) (b) | 882,518 | ||
| 33,390 | Clearway Energy, Inc., Class A (b) | 967,642 | ||
| 8,000 | EDP Renovaveis S.A. (EUR) (c) | 177,822 | ||
| 2,027,982 | ||||
| Multi-Utilities – 9.1% | ||||
| 60,000 | Atco Ltd., Class I (CAD) (b) | 1,982,655 | ||
| 7,170 | CenterPoint Energy, Inc. (b) | 218,470 | ||
| 16,450 | CMS Energy Corp. (b) | 1,024,177 | ||
| 17,380 | DTE Energy Co. (b) | 1,953,685 | ||
| 54,370 | Public Service Enterprise Group, Inc. (a) | 3,436,184 | ||
| 40,400 | Sempra Energy (a) | 6,281,796 | ||
| 3,130 | WEC Energy Group, Inc. | 301,012 | ||
| 15,197,979 | ||||
| Oil, Gas & Consumable Fuels – 31.0% | ||||
| 30,000 | BP PLC, ADR (a) | 1,208,400 | ||
| 9,410 | Cheniere Energy, Inc. (a) | 1,439,730 | ||
| 117,040 | DT Midstream, Inc. (b) | 5,766,561 | ||
| 103,085 | Enbridge, Inc. | 4,098,660 | ||
| 130,664 | Keyera Corp. (CAD) (b) | 3,074,560 | ||
| 363,998 | Kinder Morgan, Inc. (b) | 6,242,566 | ||
| 100,006 | ONEOK, Inc. (a) (b) | 6,541,392 | ||
| 53,000 | Shell PLC, ADR (a) | 3,284,940 | ||
| 45,500 | Targa Resources Corp. (b) | 3,436,615 | ||
| Shares | Description | Value | ||
| COMMON STOCKS (Continued) | ||||
| Oil, Gas & Consumable Fuels (Continued) | ||||
| 75,109 | TC Energy Corp. | $3,120,028 | ||
| 58,800 | TotalEnergies SE, ADR (a) | 3,759,084 | ||
| 320,178 | Williams (The) Cos., Inc. (a) | 9,688,586 | ||
| 51,661,122 | ||||
| Semiconductors & Semiconductor Equipment – 0.1% | ||||
| 800 | Enphase Energy, Inc. (d) | 131,360 | ||
| Water Utilities – 0.3% | ||||
| 3,200 | American Water Works Co., Inc. | 474,400 | ||
Total Common Stocks | 103,413,133 | |||
| (Cost $102,702,025) | ||||
| Units | Description | Value | ||
| MASTER LIMITED PARTNERSHIPS – 59.7% | ||||
| Chemicals – 2.8% | ||||
| 210,988 | Westlake Chemical Partners, L.P. (b) | 4,734,571 | ||
| Energy Equipment & Services – 0.4% | ||||
| 31,000 | USA Compression Partners, L.P. | 647,900 | ||
| Gas Utilities – 0.8% | ||||
| 88,500 | Suburban Propane Partners, L.P. (b) | 1,391,220 | ||
| Independent Power & Renewable Electricity Producers – 1.3% | ||||
| 37,319 | NextEra Energy Partners, L.P. (b) (e) | 2,146,216 | ||
| Oil, Gas & Consumable Fuels – 54.4% | ||||
| 217,269 | Cheniere Energy Partners, L.P. (b) | 9,909,639 | ||
| 1,232,960 | Energy Transfer, L.P. (b) | 15,880,525 | ||
| 16,000 | EnLink Midstream, LLC (b) (e) | 156,960 | ||
| 692,564 | Enterprise Products Partners, L.P. (b) | 18,221,359 | ||
| 253,830 | Hess Midstream, L.P., Class A (b) (e) | 7,447,372 | ||
| 171,190 | Holly Energy Partners, L.P. (b) | 2,852,025 | ||
| 315,819 | Magellan Midstream Partners, L.P. (b) | 17,622,700 | ||
| 245,000 | MPLX, L.P. (b) | 8,572,550 | ||
| 631,720 | Plains All American Pipeline, L.P. (b) | 8,149,188 | ||
| 41,070 | TXO Energy Partners L.P. (d) | 914,629 | ||
| 35,000 | Western Midstream Partners, L.P. (b) | 926,450 | ||
| 90,653,397 | ||||
Total Master Limited Partnerships | 99,573,304 | |||
| (Cost $72,961,515) | ||||
| Shares | Description | Value | ||
| MONEY MARKET FUNDS – 3.9% | ||||
| 6,479,015 | Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 4.71% (f) | 6,479,015 | ||
| (Cost $6,479,015) | ||||
Total Investments – 125.6% | 209,465,452 | |||
| (Cost $182,142,555) | ||||
| Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
| CALL OPTIONS WRITTEN – (0.2)% | ||||||||||
| (187) | AES (The) Corp. | $(442,442) | $26.00 | 06/16/23 | (5,423) | |||||
| (324) | Alliant Energy Corp. | (1,786,536) | 57.50 | 06/16/23 | (27,540) | |||||
| Number of Contracts | Description | Notional Amount | Exercise Price | Expiration Date | Value | |||||
| CALL OPTIONS WRITTEN (Continued) | ||||||||||
| (352) | American Electric Power Co., Inc. | $(3,253,184) | $97.50 | 05/19/23 | $(3,872) | |||||
| (300) | BP PLC, ADR | (1,208,400) | 43.00 | 05/19/23 | (4,800) | |||||
| (94) | Cheniere Energy, Inc. | (1,438,200) | 160.00 | 05/19/23 | (14,570) | |||||
| (658) | Exelon Corp. | (2,792,552) | 45.00 | 05/19/23 | (6,580) | |||||
| (134) | NextEra Energy, Inc. | (1,026,842) | 82.50 | 05/19/23 | (1,340) | |||||
| (874) | ONEOK, Inc. | (5,716,834) | 70.00 | 06/16/23 | (54,188) | |||||
| (585) | PPL Corp. | (1,680,120) | 29.00 | 05/19/23 | (25,155) | |||||
| (543) | Public Service Enterprise Group, Inc. | (3,431,760) | 65.00 | 05/19/23 | (27,150) | |||||
| (404) | Sempra Energy | (6,281,796) | 160.00 | 05/19/23 | (48,480) | |||||
| (530) | Shell PLC, ADR | (3,284,940) | 65.00 | 05/19/23 | (16,960) | |||||
| (588) | TotalEnergies SE, ADR | (3,759,084) | 67.50 | 05/19/23 | (17,640) | |||||
| (1,601) | Williams (The) Cos., Inc. | (4,844,626) | 32.00 | 05/19/23 | (16,010) | |||||
| (148) | Xcel Energy, Inc. | (1,034,668) | 70.00 | 05/19/23 | (17,760) | |||||
Total Call Options Written | (287,468) | |||||||||
| (Premiums received $431,943) | ||||||||||
Outstanding Loan – (25.7)% |
(42,900,000) | ||
Net Other Assets and Liabilities – 0.3% |
553,350 | ||
Net Assets – 100.0% |
$166,831,334 |
| (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. At April 30, 2023, the segregated value of these securities amounts to $97,495,666. |
| (c) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures approved by the Fund’s Board of Trustees and in accordance with provisions of the Investment Company Act of 1940 and rules thereunder, as amended. At April 30, 2023, the security noted as such is valued at $177,822 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. |
| (f) | Rate shown reflects yield as of April 30, 2023. |
| ADR | American Depositary Receipt |
| CAD | Canadian Dollar |
| EUR | Euro |
| ASSETS TABLE | ||||
| Total Value at 4/30/2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
| Common Stocks: | ||||
Independent Power & Renewable Electricity Producers | $ 2,027,982 | $ 1,850,160 | $ 177,822 | $ — |
Other Industry Categories* | 101,385,151 | 101,385,151 | — | — |
Master Limited Partnerships* | 99,573,304 | 99,573,304 | — | — |
Money Market Funds | 6,479,015 | 6,479,015 | — | — |
Total Investments | $ 209,465,452 | $ 209,287,630 | $ 177,822 | $— |
| LIABILITIES TABLE | ||||
| Total Value at 4/30/2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Call Options Written | $ (287,468) | $ (287,468) | $ — | $ — |
| * | See Portfolio of Investments for industry breakout. |
| ASSETS: | |
Investments, at value (Cost $182,142,555) | $ 209,465,452 |
| Receivables: | |
Dividends | 861,697 |
Income taxes | 86,019 |
Interest | 25,277 |
Dividend reclaims | 5,989 |
Prepaid expenses | 18,512 |
Total Assets | 210,462,946 |
| LIABILITIES: | |
Outstanding loan | 42,900,000 |
Options written, at value (Premiums received $431,943) | 287,468 |
| Payables: | |
Investment advisory fees | 171,622 |
Interest and fees on loan | 154,387 |
Audit and tax fees | 87,912 |
Administrative fees | 10,156 |
Trustees’ fees and expenses | 6,056 |
Shareholder reporting fees | 5,877 |
Custodian fees | 3,203 |
Legal fees | 2,093 |
Transfer agent fees | 1,326 |
Financial reporting fees | 732 |
Other liabilities | 780 |
Total Liabilities | 43,631,612 |
NET ASSETS | $166,831,334 |
| NET ASSETS consist of: | |
Paid-in capital | $ 303,542,008 |
Par value | 234,477 |
Accumulated distributable earnings (loss) | (136,945,151) |
NET ASSETS | $166,831,334 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) | $7.12 |
Number of |
| INVESTMENT INCOME: | ||
Dividends (net of foreign withholding tax of $108,791) | $ 2,033,721 | |
Interest | 87,571 | |
Total investment income | 2,121,292 | |
| EXPENSES: | ||
Investment advisory fees | 1,039,278 | |
Interest and fees on loan | 919,300 | |
Audit and tax fees | 50,241 | |
Administrative fees | 48,879 | |
Shareholder reporting fees | 31,586 | |
Legal fees | 15,883 | |
Listing expense | 12,022 | |
Trustees’ fees and expenses | 9,115 | |
Transfer agent fees | 8,946 | |
Custodian fees | 8,629 | |
Financial reporting fees | 4,587 | |
Other | 10,896 | |
Total expenses | 2,159,362 | |
NET INVESTMENT INCOME (LOSS) BEFORE TAXES | (38,070) | |
Current federal income tax benefit (expense) | 480,710 | |
Current state income tax benefit (expense) | 20,326 | |
Deferred federal income tax benefit (expense) | 574,007 | |
Deferred state income tax benefit (expense) | 33,148 | |
Total income tax benefit (expense) | 1,108,191 | |
NET INVESTMENT INCOME (LOSS) | 1,070,121 | |
| NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
| Net realized gain (loss) before taxes on: | ||
Investments | 1,429,101 | |
Written options contracts | 870,796 | |
Foreign currency transactions | (10,803) | |
Net realized gain (loss) before taxes | 2,289,094 | |
Current federal income tax benefit (expense) | (480,710) | |
Current state income tax benefit (expense) | (27,760) | |
Total income tax benefit (expense) | (508,470) | |
Net realized gain (loss) on investments, written options contracts and foreign currency transactions | 1,780,624 | |
| Net change in unrealized appreciation (depreciation) before taxes on: | ||
Investments | 3,048,059 | |
Written options contracts | 13,027 | |
Foreign currency translation | (68) | |
Net change in unrealized appreciation (depreciation) before taxes | 3,061,018 | |
Deferred federal income tax benefit (expense) | (574,007) | |
Deferred state income tax benefit (expense) | (33,148) | |
Total income tax benefit (expense) | (607,155) | |
Net change in unrealized appreciation (depreciation) on investments, written options contracts and foreign currency translation | 2,453,863 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | 4,234,487 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ 5,304,608 | |
| Six Months Ended 4/30/2023 (Unaudited) | Year Ended 10/31/2022 | ||
| OPERATIONS: | |||
Net investment income (loss) | $ 1,070,121 | $ 6,444,372 | |
Net realized gain (loss) | 1,780,624 | 10,172,548 | |
Net change in unrealized appreciation (depreciation) | 2,453,863 | 9,665,186 | |
Net increase (decrease) in net assets resulting from operations | 5,304,608 | 26,282,106 | |
| DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations | (5,288,937) | (10,940,992) | |
| CAPITAL TRANSACTIONS: | |||
Repurchase of Common Shares * | (1,310,482) | (6,372,428) | |
Net increase (decrease) in net assets resulting from capital transactions | (1,310,482) | (6,372,428) | |
Total increase (decrease) in net assets | (1,294,811) | 8,968,686 | |
| NET ASSETS: | |||
Beginning of period | 168,126,145 | 159,157,459 | |
End of period | $ 166,831,334 | $ 168,126,145 | |
| CAPITAL TRANSACTIONS were as follows: | |||
Common Shares at beginning of period | 23,662,968 | 24,720,592 | |
Common Shares repurchased * | (215,308) | (1,057,624) | |
Common Shares at end of period | 23,447,660 | 23,662,968 |
| * | On September 15, 2020, the Fund commenced a share repurchase program. For the six months ended April 30, 2023 and the fiscal year ended October 31, 2022, the Fund repurchased 215,308 and 1,057,624 Common Shares, respectively, at a weighted-average discount of 14.01% and 12.95%, respectively, from net asset value per share. The Fund’s share repurchase program ended on March 15, 2023. |
| Cash flows from operating activities: | ||
Net increase (decrease) in net assets resulting from operations | $5,304,608 | |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | ||
Purchases of investments | (43,223,856) | |
Sales of investments | 40,968,644 | |
Proceeds from written options | 1,176,088 | |
Return of capital received from investment in MLPs | 4,161,549 | |
Net realized gain/loss on investments and written options | (2,299,897) | |
Net change in unrealized appreciation/depreciation on investments and written options | (3,061,086) | |
| Changes in assets and liabilities: | ||
Increase in income taxes receivable | (488) | |
Increase in interest receivable | (25,277) | |
Increase in dividend reclaims receivable | (4,101) | |
Increase in dividends receivable | (50,880) | |
Increase in prepaid expenses | (10,788) | |
Increase in interest and fees payable on loan | 20,209 | |
Increase in investment advisory fees payable | 1,662 | |
Decrease in audit and tax fees payable | (50,945) | |
Increase in legal fees payable | 1,507 | |
Decrease in shareholder reporting fees payable | (13,216) | |
Increase in administrative fees payable | 546 | |
Increase in custodian fees payable | 6 | |
Decrease in transfer agent fees payable | (1,682) | |
Increase in trustees’ fees and expenses payable | 4,521 | |
Decrease in financial reporting fees payable | (39) | |
Increase in other liabilities payable | 379 | |
Cash provided by operating activities | $2,897,464 | |
| Cash flows from financing activities: | ||
Repurchase of Common Shares | (1,310,482) | |
Distributions to Common Shareholders from investment operations | (5,288,937) | |
Cash used in financing activities | (6,599,419) | |
Decrease in cash and foreign currency (a) | (3,701,955) | |
Cash at beginning of period | 3,701,955 | |
Cash at end of period | $— | |
| Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest and fees | $924,368 | |
Cash paid during the period for taxes | $7,921 |
| (a) | Includes net change in unrealized appreciation (depreciation) on foreign currency of $(68). |
| Six Months Ended 4/30/2023 (Unaudited) | Year Ended October 31, | |||||||||||
| 2022 | 2021 | 2020 | 2019 | 2018 | ||||||||
Net asset value, beginning of period | $ 7.11 | $ 6.44 | $ 4.73 | $ 9.41 | $ 9.43 | $ 11.95 | ||||||
| Income from investment operations: | ||||||||||||
Net investment income (loss) | 0.05 | 0.26 | 0.48 | (1.07) | 0.12 | (0.28) | ||||||
Net realized and unrealized gain (loss) | 0.18 | 0.82 | 1.65 | (2.93) | 0.76 (a) | (1.04) (a) | ||||||
Total from investment operations | 0.23 | 1.08 | 2.13 | (4.00) | 0.88 | (1.32) | ||||||
| Distributions paid to shareholders from: | ||||||||||||
Net investment income | — | (0.03) | (0.03) | — | — | — | ||||||
Net realized gain | (0.23) | (0.42) | (0.42) | — | (0.25) | — | ||||||
Return of capital | — | — | — | (0.68) | (0.65) | (1.20) | ||||||
Total distributions paid to Common Shareholders | (0.23) | (0.45) | (0.45) | (0.68) | (0.90) | (1.20) | ||||||
Common Share repurchases | 0.01 | 0.04 | 0.03 | 0.00 (b) | — | — | ||||||
Net asset value, end of period | $ | $7.11 | $6.44 | $4.73 | $9.41 | $9.43 | ||||||
Market value, end of period | $ | $6.08 | $5.80 | $3.66 | $8.66 | $8.65 | ||||||
Total return based on net asset value (c) | 3.91% | 19.00% | 48.22% | (43.24)% | 10.34% (a) | (11.66)% (a) | ||||||
Total return based on market value (c) | 2.57% | 12.99% | 72.51% | (52.28)% | 10.70% | (18.70)% | ||||||
Net assets, end of period (in 000’s) | $ 166,831 | $ 168,126 | $ 159,157 | $ 121,183 | $ 241,815 | $ 242,226 | ||||||
Portfolio turnover rate | 8% | 57% | 126% | 113% | 74% | 64% | ||||||
| Ratios of expenses to average net assets: | ||||||||||||
Including current and deferred income taxes (d) | 2.62% (e) | 2.15% | 2.34% | 5.51% (f) | 2.89% | 2.81% | ||||||
Excluding current and deferred income taxes | 2.61% (e) | 2.22% | 2.14% | 5.34% (f) | 2.86% | 2.79% | ||||||
Excluding current and deferred income taxes and interest expense | 1.50% (e) | 1.49% | 1.50% | 1.58% | 1.58% | 1.57% | ||||||
| Ratios of net investment income (loss) to average net assets: | ||||||||||||
Net investment income (loss) ratio before tax expenses | (0.05)% (e) | 0.17% | (0.13)% | (3.40)% (f) | (0.90)% | (0.40)% | ||||||
Net investment income (loss) ratio including tax expenses (d) | (0.06)% (e) | 0.24% | (0.32)% | (3.57)% (f) | (0.93)% | (0.41)% | ||||||
| Indebtedness: | ||||||||||||
Total loan outstanding (in 000’s) | $ 42,900 | $ 42,900 | $ 40,400 | $ 33,400 | $ 89,000 | $ 87,500 | ||||||
Asset coverage per $1,000 of indebtedness (g) | $ 4,889 | $ 4,919 | $ 4,940 | $ 4,628 | $ 3,717 | $ 3,768 | ||||||
| (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 last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price; |
| 2) | the type of security; |
| 3) | the size of the holding; |
| 4) | the initial cost of the security; |
| 5) | transactions in comparable securities; |
| 6) | price quotes from dealers and/or third-party pricing services; |
| 7) | relationships among various securities; |
| 8) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
| 9) | an analysis of the issuer’s financial statements; |
| 10) | the existence of merger proposals or tender offers that might affect the value of the security; and |
| 11) | other relevant factors. |
| 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; |
| 8) | whether the effects of the event are isolated or whether they affect entire markets, countries or regions; and |
| 9) | other relevant factors. |
| • | 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) | (7,434) |
Current foreign income tax benefit (expense) | — |
Deferred federal income tax benefit (expense) | — |
Deferred state income tax benefit (expense) | — |
Total income tax benefit (expense) | $(7,434) |
Federal net operating loss | $2,087,348 |
State net operating loss | 2,226,652 |
State income taxes | — |
Federal and state capital loss carryforward | 18,033,504 |
Other | — |
Total deferred tax assets | 22,347,504 |
Less: federal valuation allowance | (8,637,170) |
Less: state valuation allowance | (2,962,689) |
Net deferred tax assets | $10,747,645 |
| Deferred tax liabilities: | |
Unrealized gains on investment securities | $(10,747,645) |
Total deferred tax liabilities | (10,747,645) |
Total net deferred tax liabilities | $— |
Application of statutory income tax rate | $ 1,115,529 |
State income taxes, net | 38,646 |
Change in valuation allowance | (996,568) |
Current year change in tax rate | — |
Other | (150,173) |
Total | $ 7,434 |
| Fiscal Year | Amount Generated | Prior Year Amount Utilized | Current Year Amount Utilized | Amount Expired | Remaining | Expiration | ||||||
| 2017 | $ 7,889,835 | $ — | $ (7,889,835) | $ — | $ — | 10/31/2022 | ||||||
| 2018 | 7,227,948 | — | (2,145,851) | — | 5,082,097 | 10/31/2023 | ||||||
| 2020 | 76,657,602 | — | — | — | 76,657,602 | 10/31/2025 | ||||||
| $ 91,775,385 | $ — | $ (10,035,686) | $ — | $ 81,739,699 |
| Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||
| $160,626,651 | $54,139,215 | $(5,587,882) | $48,551,333 |
| 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 | $ 287,468 | |||||
| Statement of Operations Location | |
| Equity Risk Exposure | |
| Net realized gain (loss) before taxes on written options contracts | $870,796 |
| Net change in unrealized appreciation (depreciation) before taxes on written options contracts | 13,027 |
| (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. |
| (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.
REGISTRANT PURCHASES OF EQUITY SECURITIES
| 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 (11/01/2022– 11/30/2022) |
78,261 | 6.04 | 2,130,674 |
181,828
|
| Month #2 (12/01/2022– 12/31/2022) |
137,047 | 6.11 | 2,267,721 | 44,781 |
| Month #3 (01/01/2023– 01/31/2023) |
0 | 0 | 0 | 0 |
| Month #4 (02/01/2023– 02/28/2023) |
0 | 0 | 0 | 0 |
| Month #5 (03/01/2023– 03/31/2023) |
0 | 0 | 0 | 0 |
| Month #6 (04/01/2023– 04/30/2023) |
0 | 0 | 0 | 0 |
| Month #7 (05/01/2023– 05/31/2023) |
0 | 0 | 0 | 0 |
| Month #8 (06/01/2023– 06/30/2023) |
0 | 0 | 0 | 0 |
| Month #9 (07/01/2023– 07/31/2023) |
0 | 0 | 0 | 0 |
| Month #10 (08/01/2023– 08/31/2023) |
0 | 0 | 0 | 0 |
| Month #11 (09/01/2023– 09/30/2023) |
0 | 0 | 0 | 0 |
| Month #12 (10/01/2023– 10/31/2023) |
0 | 0 | 0 | 0 |
| Total | 215,308 | $6.09 | 2,267,721 | 44,781 |
On September 15, 2020, the Fund commenced a share repurchase program. For the six months ended April 30, 2023, and the fiscal year ended October 31, 2022, the Fund repurchased 215,308 and 1,057,624 Commons Shares, respectively, at a weighted-average discount of 14.01% and 12.95%, respectively, from net asset value per share. The Fund’s share repurchase program ended on 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 10, 2023 |
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 10, 2023 |
| By (Signature and Title)* | /s/ Donald P. Swade | |
| Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
| Date: | July 10, 2023 |
* Print the name and title of each signing officer under his or her signature.
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, James M. Dykas, certify that:
| 1. | I have reviewed this report on Form N-CSR of First Trust New Opportunities MLP & Energy Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | July 10, 2023 | /s/ James M. Dykas | |||
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, Donald P. Swade, certify that:
| 1. | I have reviewed this report on Form N-CSR of First Trust New Opportunities MLP & Energy Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | July 10, 2023 | /s/ Donald P. Swade | |||
| Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Certification Pursuant to Rule 30a-2(b) under the
1940 Act and Section 906
of the Sarbanes-Oxley Act
I, James M. Dykas, President and Chief Executive Officer of First Trust New Opportunities MLP & Energy Fund (the “Registrant”), certify that:
| 1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
| Date: | July 10, 2023 | /s/ James M. Dykas | |||
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
I, Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer of First Trust New Opportunities MLP & Energy Fund (the “Registrant”), certify that:
| 1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
| Date: | July 10, 2023 | /s/ Donald P. Swade | |||
| Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
N-2 |
6 Months Ended |
|---|---|
|
Apr. 30, 2023
$ / shares
shares
| |
| Cover [Abstract] | |
| Entity Central Index Key | 0001589420 |
| Amendment Flag | false |
| Entity Inv Company Type | N-2 |
| Document Type | N-CSRS |
| Entity Registrant Name | First Trust New Opportunities MLP & Energy Fund |
| General Description of Registrant [Abstract] | |
| Risk Factors [Table Text Block] | Principal Risks
The Fund is a closed-end
management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all
investments, there can be no assurance that the Fund will achieve its investment objective.
The following discussion
summarizes the principal risks associated with investing in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational requirements
of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports, proxy statements and other information that is available for review. The order of the below
risk factors does not indicate the significance of any particular risk factor.
Covered Call Options
Risk. As the writer (seller) of a call option, the Fund forgoes, during the life of the option, the opportunity to profit from increases in the market value of the portfolio security
covering the option above the sum of the premium and the strike price of the call option but retains the risk of loss should the price of the underlying security decline. The value of call options written by the Fund,
which are priced daily, are determined by trading activity in the broad options market and will be affected by, among other factors, changes in the value of the underlying security in relation to the strike price,
changes in dividend rates of the underlying security, changes in interest rates, changes in actual or perceived volatility of the stock market and the underlying security, and the time remaining until the expiration
date. The value of call options written by the Fund may be adversely affected if the market for the option is reduced or becomes illiquid. There can be no assurance that a liquid market will exist when the Fund seeks
to close out an option position.
Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the
Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated
with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but
may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party
service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct
cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because
the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the
future.
Energy Infrastructure
Companies Risk. Energy infrastructure companies, such as those structured as MLPs or utility companies, may be directly affected by energy commodity prices, especially those companies which own the
underlying energy commodity. A decrease in the production or availability of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the volume of such commodities available for
transportation, processing, storage or distribution may adversely impact the financial performance of energy infrastructure companies. Energy infrastructure companies are subject to significant federal, state and
local government regulation in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for
products and services. Various governmental authorities have the power to enforce compliance with these regulations and the permits issued under them and violators are subject to administrative, civil and criminal
penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely increase compliance costs and may adversely affect the
financial performance of energy infrastructure companies. Natural disasters, such as hurricanes in the Gulf of Mexico, also may impact energy infrastructure companies.
Certain energy
infrastructure companies are subject to the imposition of rate caps, increased competition due to deregulation, counterparties to contracts defaulting or going bankrupt, the difficulty in obtaining an adequate return
on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the capital market’s ability to
absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation may cause difficulties for these companies.
Equity Securities Risk.
The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which the Fund invests. Prices of equity securities fluctuate for several reasons,
including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events
affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline
significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the
market.
Interest Rate Swaps
Risk. If short-term interest rates are lower than the Fund’s fixed rate of payment on an interest rate swap, the swap will reduce common share net earnings. In addition, a default by
the counterparty to a swap transaction could also negatively impact the performance of the common shares.
Leverage Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and investments purchased with leverage proceeds do not cover the cost of
leverage, the return to the common shares will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood of greater volatility
of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders
or will result in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net asset value of the common shares than if the
Fund were not leveraged, which may result in a greater decline in the market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by
the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
Liquidity Risk. Certain securities in which the Fund may invest may trade less frequently, particularly those of issuers with smaller capitalizations. Securities with limited trading volumes may
display volatile or erratic price movements. The Fund may have difficulty selling these investments in a timely manner, be forced to sell them for less than it otherwise would have been able to realize, or
both.
Management Risk and
Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique
talents and experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
Market Discount from Net
Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at,
below or above net asset value.
Market Risk. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or
market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of loss associated with
these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a
significant negative impact on the Fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting
international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines
has slowed the spread of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread.
Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant
market disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain Fund investments as
well as Fund performance. As the global pandemic and conflict in Ukraine have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others.
Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also
heighten market volatility and reduce liquidity. These events also may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could result in disruptions in the
trading markets. Any of such circumstances could have a materially negative
impact on the value of the Fund’s
shares and result in increased market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund’s shares
may widen.
MLP and Investment
Concentration Risks. The Fund’s investments are concentrated in the group of industries that are part of the energy sector, with a particular focus on MLPs, MLP-related entities and other companies
in the energy sector and energy utility industries. The Fund’s concentration in the group of industries that are part of the energy sector may present more risk than if the Fund were broadly diversified over
multiple sectors of the economy. A downturn in one or more industries within the energy sector, material declines in energy-related commodity prices, adverse political, legislative or regulatory developments or other
events could have a larger impact on the Fund than on an investment company that does not concentrate in the group of industries that are part of the energy sector. Certain risks inherent in investing in the business
of the types of securities that the Fund may invest include: commodity pricing risk, commodity supply and demand risk, lack of diversification of and reliance on MLP customers and suppliers risk, commodity depletion
and exploration risk, energy sector and energy utility industry regulatory risk including risks associated with the prices and methodology of determining prices that energy companies may charge for their products and
services, interest rate risk, risk of lack of acquisition or reinvestment opportunities for MLPs, risk of lacking of funding for MLPs, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and
MLP market disruption risk, and technology risk.
Companies that own
interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff rates that they may charge customers and may change policies to no longer permit such
companies to include certain costs in their costs of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other factors which may
reduce the amount of cash an MLP, MLP-related entity and other energy sector and energy utility company has available to pay its debt and equity holders include increased operating costs, maintenance capital
expenditures, acquisition costs, expansion or construction costs and borrowing costs (including increased borrowing costs as a result of additional collateral requirements as a result of ratings downgrades by credit
agencies).
Non-Diversification. The Fund is a non-diversified investment company under the 1940 Act and will not be treated as a regulated investment company under the Internal Revenue Code of 1986.
Accordingly, the diversification-specific regulatory requirements under the 1940 Act and the Internal Revenue Code of 1986 regarding the minimum number or size of portfolio securities do not apply to the Fund,
and the Fund’s investments may be more heavily concentrated in, and thus more sensitive to changes in the prices of, securities of particular issuers.
Non-U.S. Securities and
Currency Risk. Investing in non-U.S. securities involves certain risks not involved in domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign
economic, financial, political and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions; lower trading volume; withholding taxes;
greater price volatility and illiquidity; different trading and settlement practices; less governmental supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available
information; and different accounting, auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S. currencies, changes in the non-U.S.
currency/United States dollar exchange rate may affect the value of the Fund’s securities and the unrealized appreciation or depreciation of investments.
Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service
providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure
relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and Advisor seek to reduce these operational risks through controls
and procedures, there is no way to completely protect against such risks.
Renewable Energy Company
Risk. Renewable energy companies are a subset of Energy Infrastructure Companies and, as such, are subject to many of the same risks as Energy Infrastructure Companies. In addition, the
future growth of renewable energy companies may be dependent upon government policies that support renewable power generation and enhance the economic viability of owning renewable electric generation assets. Such
policies can include renewable portfolio standard programs, which mandate that a specified percentage of electricity sales come from eligible sources of renewable energy, accelerated cost-recovery systems of
depreciation and tax credits.
A portion of revenues
from investments in renewable energy companies will be tied, either directly or indirectly, to the wholesale market price for electricity in the markets served. Wholesale market electricity prices are impacted by a
number of factors including: the price of fuel (for example, natural gas) that is used to generate electric power; the cost of and management of generation and the amount of excess generating capacity relative to load
in a particular market; and conditions (such as extremely hot or cold weather) that impact electrical system demand. Owners of renewable energy companies may attempt to secure fixed prices for their
power production through the use of
financial hedges; but may not be able to deliver power to collect such fixed price, rendering those hedges ineffective or creating economic losses for renewable energy companies. In addition, there is uncertainty
surrounding the trend in electricity demand growth, which is influenced by macroeconomic conditions; absolute and relative energy prices; and energy conservation and demand management. This volatility and uncertainty
in power markets could have a material adverse effect on the assets, liabilities, financial condition, results of operations and cash flow of the companies in which the Fund may invest.
Potential Conflicts of
Interest Risk. First Trust, EIP and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and EIP currently manage and may in the future
manage and/or advise other investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund is using leverage, the amount of the fees
paid to First Trust (and by First Trust to EIP) for investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based on Managed Assets. Therefore,
First Trust and EIP have a financial incentive to leverage the Fund.
Recent Market and Economic
Developments. In recent years, prices of oil and other energy commodities have experienced significant volatility. During such periods, such volatility has adversely impacted many of the MLPs,
MLP-related entities and other companies in the energy sector and energy utility industries in which the Fund has invested or may invest. For example, many MLPs, MLP-related entities and other companies in the energy
sector and energy utility industries have in recent years experienced eroding growth prospects, reduced distribution levels or, in some cases, bankruptcy. These conditions have impacted, and may in the future impact,
the NAV of the Fund and its ability to pay distributions to shareholders at current or historic levels.
Tax Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely affect the Fund or the MLPs, MLP-related entities and other energy sector and energy
utility companies in which the Fund invests. A change in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in an MLP being treated as a
corporation for United States federal income tax purposes, which would result in such MLP being required to pay United States federal income tax on its taxable income. In the past, certain events have caused some MLPs
to be reclassified or restructured as corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing the amount of cash available for distribution
by the MLP and causing any such distributions received by the Fund to be taxed as dividend income to the extent of the MLP’s current or accumulated earnings and profits.
A reduction in the
percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as
a return of capital and increase that portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand, to the extent a distribution received by the
Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the
amount of loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
Utilities Risk. Utility companies include companies producing or providing gas, electricity or water. These companies are subject to the risk of the imposition of rate caps, increased competition due to
deregulation, the difficulty in obtaining an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental
considerations and the capital market’s ability to absorb utility debt. In addition, in many regions, including the United States, the utility industry is experiencing increasing competitive pressures, primarily
in wholesale markets, as a result of consumer demand, technological advances, greater availability of natural gas with respect to electric utility companies and other factors. Taxes, government regulation,
international politics, price and supply fluctuations, volatile interest rates and energy conservation also may negatively affect utility companies.
Valuation Risk. Market prices generally will not be available for subordinated units, direct ownership of general partner interests, restricted securities or unregistered securities of certain MLPs
or MLP-related entities, and the value of such investments will ordinarily be determined based on fair valuations determined pursuant to procedures adopted by the Board of Trustees. The value of these securities
typically requires more reliance on the judgment of the Sub-Advisor than that required for securities for which there is an active trading market. In addition, the Fund relies on information provided by certain MLPs,
which may not be received by the Fund in a timely manner, to calculate taxable income allocable to the MLP units held in the Fund’s portfolio and to determine the tax character of distributions to common
shareholders. From time to time the Fund will modify its estimates and/or assumptions as new information becomes available. To the extent the Fund modifies its estimates and/or assumptions, the net asset value of the
Fund would likely fluctuate.
|
| Share Price | $ 6.01 |
| NAV Per Share | $ 7.12 |
| Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |
| Outstanding Security, Title [Text Block] | Common Shares |
| Outstanding Security, Held [Shares] | shares | 23,447,660 |
| Covered Call Options Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Covered Call Options
Risk. As the writer (seller) of a call option, the Fund forgoes, during the life of the option, the opportunity to profit from increases in the market value of the portfolio security
covering the option above the sum of the premium and the strike price of the call option but retains the risk of loss should the price of the underlying security decline. The value of call options written by the Fund,
which are priced daily, are determined by trading activity in the broad options market and will be affected by, among other factors, changes in the value of the underlying security in relation to the strike price,
changes in dividend rates of the underlying security, changes in interest rates, changes in actual or perceived volatility of the stock market and the underlying security, and the time remaining until the expiration
date. The value of call options written by the Fund may be adversely affected if the market for the option is reduced or becomes illiquid. There can be no assurance that a liquid market will exist when the Fund seeks
to close out an option position.
|
| Cyber Security Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the
Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated
with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but
may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party
service providers, such as its administrator, transfer agent, custodian, or sub-advisor, as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct
cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because
the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the
future.
|
| Energy Infrastructure Companies Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Energy Infrastructure
Companies Risk. Energy infrastructure companies, such as those structured as MLPs or utility companies, may be directly affected by energy commodity prices, especially those companies which own the
underlying energy commodity. A decrease in the production or availability of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the volume of such commodities available for
transportation, processing, storage or distribution may adversely impact the financial performance of energy infrastructure companies. Energy infrastructure companies are subject to significant federal, state and
local government regulation in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for
products and services. Various governmental authorities have the power to enforce compliance with these regulations and the permits issued under them and violators are subject to administrative, civil and criminal
penalties, including civil fines, injunctions or both. Stricter laws, regulations or enforcement policies could be enacted in the future which would likely increase compliance costs and may adversely affect the
financial performance of energy infrastructure companies. Natural disasters, such as hurricanes in the Gulf of Mexico, also may impact energy infrastructure companies.
Certain energy
infrastructure companies are subject to the imposition of rate caps, increased competition due to deregulation, counterparties to contracts defaulting or going bankrupt, the difficulty in obtaining an adequate return
on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental considerations, and the capital market’s ability to
absorb utility debt. In addition, taxes, government regulation, international politics, price and supply fluctuations, volatile interest rates and energy conservation may cause difficulties for these companies.
|
| Equity Securities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Equity Securities Risk.
The value of the Fund’s shares will fluctuate with changes in the value of the equity securities in which the Fund invests. Prices of equity securities fluctuate for several reasons,
including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events
affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline
significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the
market.
|
| Interest Rate Swaps Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Interest Rate Swaps
Risk. If short-term interest rates are lower than the Fund’s fixed rate of payment on an interest rate swap, the swap will reduce common share net earnings. In addition, a default by
the counterparty to a swap transaction could also negatively impact the performance of the common shares.
|
| Leverage Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Leverage Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and investments purchased with leverage proceeds do not cover the cost of
leverage, the return to the common shares will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood of greater volatility
of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders
or will result in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net asset value of the common shares than if the
Fund were not leveraged, which may result in a greater decline in the market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor and by
the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
|
| Liquidity Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Liquidity Risk. Certain securities in which the Fund may invest may trade less frequently, particularly those of issuers with smaller capitalizations. Securities with limited trading volumes may
display volatile or erratic price movements. The Fund may have difficulty selling these investments in a timely manner, be forced to sell them for less than it otherwise would have been able to realize, or
both.
|
| Management Risk And Reliance On Key Personnel [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Management Risk and
Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique
talents and experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
|
| Market Discount From Net Asset Value [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Market Discount from Net
Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at,
below or above net asset value.
|
| Market Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Market Risk. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or
market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result of the risk of loss associated with
these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious diseases or other public health issues, recessions, or other events could have a
significant negative impact on the Fund and its investments. For example, the coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting
international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, had negative impacts, and in many cases severe impacts, on markets worldwide. While the development of vaccines
has slowed the spread of the virus and allowed for the resumption of reasonably normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread.
Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. Also, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant
market disruptions and volatility across markets globally, including the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain Fund investments as
well as Fund performance. As the global pandemic and conflict in Ukraine have illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others.
Recent and potential future bank failures could result in disruption to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which may also
heighten market volatility and reduce liquidity. These events also may adversely affect the prices and liquidity of the Fund’s portfolio securities or other instruments and could result in disruptions in the
trading markets. Any of such circumstances could have a materially negative
impact on the value of the Fund’s
shares and result in increased market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value and the bid/ask spread on the Fund’s shares
may widen.
|
| M L P And Investment Concentration Risks [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | MLP and Investment
Concentration Risks. The Fund’s investments are concentrated in the group of industries that are part of the energy sector, with a particular focus on MLPs, MLP-related entities and other companies
in the energy sector and energy utility industries. The Fund’s concentration in the group of industries that are part of the energy sector may present more risk than if the Fund were broadly diversified over
multiple sectors of the economy. A downturn in one or more industries within the energy sector, material declines in energy-related commodity prices, adverse political, legislative or regulatory developments or other
events could have a larger impact on the Fund than on an investment company that does not concentrate in the group of industries that are part of the energy sector. Certain risks inherent in investing in the business
of the types of securities that the Fund may invest include: commodity pricing risk, commodity supply and demand risk, lack of diversification of and reliance on MLP customers and suppliers risk, commodity depletion
and exploration risk, energy sector and energy utility industry regulatory risk including risks associated with the prices and methodology of determining prices that energy companies may charge for their products and
services, interest rate risk, risk of lack of acquisition or reinvestment opportunities for MLPs, risk of lacking of funding for MLPs, dependency on MLP affiliate risk, weather risk, catastrophe risk, terrorism and
MLP market disruption risk, and technology risk.
Companies that own
interstate pipelines are subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to the tariff rates that they may charge customers and may change policies to no longer permit such
companies to include certain costs in their costs of services. This may lower the tariff rates charged to customers which will in turn negatively affect performance.
Other factors which may
reduce the amount of cash an MLP, MLP-related entity and other energy sector and energy utility company has available to pay its debt and equity holders include increased operating costs, maintenance capital
expenditures, acquisition costs, expansion or construction costs and borrowing costs (including increased borrowing costs as a result of additional collateral requirements as a result of ratings downgrades by credit
agencies).
|
| Non Diversification [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Non-Diversification. The Fund is a non-diversified investment company under the 1940 Act and will not be treated as a regulated investment company under the Internal Revenue Code of 1986.
Accordingly, the diversification-specific regulatory requirements under the 1940 Act and the Internal Revenue Code of 1986 regarding the minimum number or size of portfolio securities do not apply to the Fund,
and the Fund’s investments may be more heavily concentrated in, and thus more sensitive to changes in the prices of, securities of particular issuers.
|
| Non U S Securities And Currency Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Non-U.S. Securities and
Currency Risk. Investing in non-U.S. securities involves certain risks not involved in domestic investments, including, but not limited to: fluctuations in currency exchange rates; future foreign
economic, financial, political and social developments; different legal systems; the possible imposition of exchange controls or other foreign governmental laws or restrictions; lower trading volume; withholding taxes;
greater price volatility and illiquidity; different trading and settlement practices; less governmental supervision; high and volatile rates of inflation; fluctuating interest rates; less publicly available
information; and different accounting, auditing and financial recordkeeping standards and requirements. Because the Fund may invest in securities denominated or quoted in non-U.S. currencies, changes in the non-U.S.
currency/United States dollar exchange rate may affect the value of the Fund’s securities and the unrealized appreciation or depreciation of investments.
|
| Operational Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service
providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody. Any delay or failure
relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and Advisor seek to reduce these operational risks through controls
and procedures, there is no way to completely protect against such risks.
|
| Renewable Energy Company Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Renewable Energy Company
Risk. Renewable energy companies are a subset of Energy Infrastructure Companies and, as such, are subject to many of the same risks as Energy Infrastructure Companies. In addition, the
future growth of renewable energy companies may be dependent upon government policies that support renewable power generation and enhance the economic viability of owning renewable electric generation assets. Such
policies can include renewable portfolio standard programs, which mandate that a specified percentage of electricity sales come from eligible sources of renewable energy, accelerated cost-recovery systems of
depreciation and tax credits.
A portion of revenues
from investments in renewable energy companies will be tied, either directly or indirectly, to the wholesale market price for electricity in the markets served. Wholesale market electricity prices are impacted by a
number of factors including: the price of fuel (for example, natural gas) that is used to generate electric power; the cost of and management of generation and the amount of excess generating capacity relative to load
in a particular market; and conditions (such as extremely hot or cold weather) that impact electrical system demand. Owners of renewable energy companies may attempt to secure fixed prices for their
power production through the use of
financial hedges; but may not be able to deliver power to collect such fixed price, rendering those hedges ineffective or creating economic losses for renewable energy companies. In addition, there is uncertainty
surrounding the trend in electricity demand growth, which is influenced by macroeconomic conditions; absolute and relative energy prices; and energy conservation and demand management. This volatility and uncertainty
in power markets could have a material adverse effect on the assets, liabilities, financial condition, results of operations and cash flow of the companies in which the Fund may invest.
|
| Potential Conflicts Of Interest Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Potential Conflicts of
Interest Risk. First Trust, EIP and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and EIP currently manage and may in the future
manage and/or advise other investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund is using leverage, the amount of the fees
paid to First Trust (and by First Trust to EIP) for investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based on Managed Assets. Therefore,
First Trust and EIP have a financial incentive to leverage the Fund.
|
| Recent Market And Economic Developments [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Recent Market and Economic
Developments. In recent years, prices of oil and other energy commodities have experienced significant volatility. During such periods, such volatility has adversely impacted many of the MLPs,
MLP-related entities and other companies in the energy sector and energy utility industries in which the Fund has invested or may invest. For example, many MLPs, MLP-related entities and other companies in the energy
sector and energy utility industries have in recent years experienced eroding growth prospects, reduced distribution levels or, in some cases, bankruptcy. These conditions have impacted, and may in the future impact,
the NAV of the Fund and its ability to pay distributions to shareholders at current or historic levels.
|
| Tax Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Tax Risk. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely affect the Fund or the MLPs, MLP-related entities and other energy sector and energy
utility companies in which the Fund invests. A change in current tax law, a change in the business of a given MLP, or a change in the types of income earned by a given MLP could result in an MLP being treated as a
corporation for United States federal income tax purposes, which would result in such MLP being required to pay United States federal income tax on its taxable income. In the past, certain events have caused some MLPs
to be reclassified or restructured as corporations. The classification of an MLP as a corporation for United States federal income tax purposes has the effect of reducing the amount of cash available for distribution
by the MLP and causing any such distributions received by the Fund to be taxed as dividend income to the extent of the MLP’s current or accumulated earnings and profits.
A reduction in the
percentage of the income offset by tax deductions or an increase in sales of the Fund’s MLP holdings that result in capital gains will reduce that portion of the Fund’s distribution from an MLP treated as
a return of capital and increase that portion treated as income, and may result in lower after-tax distributions to the Fund’s common shareholders. On the other hand, to the extent a distribution received by the
Fund from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in the interests of the MLP may be reduced, which will result in an increase in the amount of income or gain or decrease in the
amount of loss that will be recognized by the Fund for tax purposes upon the sale of any such interests.
|
| Utilities Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Utilities Risk. Utility companies include companies producing or providing gas, electricity or water. These companies are subject to the risk of the imposition of rate caps, increased competition due to
deregulation, the difficulty in obtaining an adequate return on invested capital or in financing large construction projects, the limitations on operations and increased costs and delays attributable to environmental
considerations and the capital market’s ability to absorb utility debt. In addition, in many regions, including the United States, the utility industry is experiencing increasing competitive pressures, primarily
in wholesale markets, as a result of consumer demand, technological advances, greater availability of natural gas with respect to electric utility companies and other factors. Taxes, government regulation,
international politics, price and supply fluctuations, volatile interest rates and energy conservation also may negatively affect utility companies.
|
| Valuation Risk [Member] | |
| General Description of Registrant [Abstract] | |
| Risk [Text Block] | Valuation Risk. Market prices generally will not be available for subordinated units, direct ownership of general partner interests, restricted securities or unregistered securities of certain MLPs
or MLP-related entities, and the value of such investments will ordinarily be determined based on fair valuations determined pursuant to procedures adopted by the Board of Trustees. The value of these securities
typically requires more reliance on the judgment of the Sub-Advisor than that required for securities for which there is an active trading market. In addition, the Fund relies on information provided by certain MLPs,
which may not be received by the Fund in a timely manner, to calculate taxable income allocable to the MLP units held in the Fund’s portfolio and to determine the tax character of distributions to common
shareholders. From time to time the Fund will modify its estimates and/or assumptions as new information becomes available. To the extent the Fund modifies its estimates and/or assumptions, the net asset value of the
Fund would likely fluctuate.
|
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