Market Overview

First Trust New Opportunities MLP & Energy Fund Decreases its Monthly Common Share Distribution to $0.075 Per Share for September

Share:

First Trust New Opportunities MLP & Energy Fund (the "Fund") (NYSE:FPL)
has decreased its regularly scheduled monthly common share distribution
to $0.075 per share from $0.105 per share. The distribution will be
payable on September 17, 2018, to shareholders of record as of September
5, 2018. The ex-dividend date is expected to be September 4, 2018. The
monthly distribution information for the Fund appears below.

First Trust New Opportunities MLP & Energy
Fund (FPL):

Distribution per share:     $0.075
Distribution Rate based on the August 17, 2018 NAV of $10.75: 8.37%
Distribution Rate based on the August 17, 2018 closing market price
of $10.91:
8.25%
Decrease from previous distribution of $0.105: -28.57%
 

It is anticipated that, due to the tax treatment of cash distributions
made by master limited partnerships ("MLPs") in which the Fund invests,
a portion of the distributions the Fund makes to Common Shareholders may
consist of a tax-deferred return of capital. The final determination of
the source and tax status of all 2018 distributions will be made after
the end of 2018 and will be provided on Form 1099-DIV.

The Fund's monthly common share distribution is being reduced by 28.57%
from $0.105 per share to $0.075 per share. This reduction reflects three
factors that have lowered the Fund's distributable cash flow: 1)
Portfolio companies lowering dividend payout ratios, 2) reduced Fund
borrowings, and 3) lower market volatility limiting the Fund's ability
to augment income via its covered call strategy.

The Alerian MLP Index is down 46% from its high in the third quarter of
2014. Lower unit prices and attendant higher equity financing costs are
driving most MLP-structured companies toward self-financing of growth by
retaining cash through lower or slower-growing cash distributions to
investors. Structural simplifications, including acquisitions of
lower-valued MLP subsidiaries by C-corp parents, have also contributed
to lower dividend yields. For FPL this has resulted in lower dividend
receipts from portfolio companies despite generally higher per-share
distributable cash flow.

Since the third quarter of 2014, lower unit prices also necessitated a
42% reduction in the Fund's borrowing level. These borrowings have
historically enhanced the Fund's cash flows through the purchase of
higher yielding securities such as MLP's, pipeline corporations and
utilities. As such, reduced borrowings have also negatively affected the
Fund's cash flows.

The Fund is a non-diversified, closed-end management investment company
that seeks a high level of total return with an emphasis on current
distributions paid to common shareholders. The Fund will seek to provide
its common shareholders with a vehicle to invest in a portfolio of
cash-generating securities, with a focus on investing in publicly traded
MLPs and MLP-related entities in the energy sector and energy utilities
industries that are weighted towards non-cyclical, fee-for-service
revenues. Under normal market conditions, the Fund will invest at least
85% of its Managed Assets in equity and debt securities of MLPs,
MLP-related entities and other energy sector and energy utilities
companies that the Fund's Sub-Advisor believes offer opportunities for
growth and income. To generate additional income, the Fund currently
expects to write (or sell) covered call options on up to 35% of its
managed assets. The Fund is treated as a regular corporation, or a "C"
corporation, for United States federal income tax purposes and, as a
result, is subject to corporate income tax to the extent the Fund
recognizes taxable income.

First Trust Advisors L.P. ("FTA") is a federally registered investment
advisor and serves as the Fund's investment advisor. FTA and its
affiliate First Trust Portfolios L.P. ("FTP"), a FINRA registered
broker-dealer, are privately-held companies that provide a variety of
investment services. FTA has collective assets under management or
supervision of approximately $130 billion as of July 31, 2018 through
unit investment trusts, exchange-traded funds, closed-end funds, mutual
funds and separate managed accounts. FTA is the supervisor of the First
Trust unit investment trusts, while FTP is the sponsor. FTP is also a
distributor of mutual fund shares and exchange-traded fund creation
units. FTA and FTP are based in Wheaton, Illinois.

Energy Income Partners, LLC ("EIP") serves as the Fund's investment
sub-advisor and provides advisory services to a number of investment
companies and partnerships for the purpose of investing in MLPs and
other energy infrastructure securities. EIP is one of the early
investment advisors specializing in this area. As of July 31, 2018, EIP
managed or supervised approximately $6.3 billion in client assets.

Past performance is no assurance of future results. Investment return
and market value of an investment in the Fund will fluctuate. Shares,
when sold, may be worth more or less than their original cost.

Principal Risk Factors: The Fund is subject to risks, including the fact
that it is a non-diversified closed-end management investment company.

Because the Fund is concentrated in securities issued by MLPs,
MLP-related entities, and other energy and utilities companies, it will
be more susceptible to adverse economic or regulatory occurrences
affecting those industries, including high interest costs, high leverage
costs, the effects of economic slowdown, surplus capacity, increased
competition, uncertainties concerning the availability of fuel at
reasonable prices, the effects of energy conservation policies and other
factors.

The Fund's use of derivatives may result in losses greater than if they
had not been used, may require the Fund to sell or purchase portfolio
securities at inopportune times, may limit the amount of appreciation
the Fund can realize on an investment, or may cause the Fund to hold a
security that it might otherwise sell.

The Fund invests in securities of non-U.S. issuers which are subject to
higher volatility than securities of U.S. issuers. Because the Fund
invests in non-U.S. securities, you may lose money if the local currency
of a non-U.S. market depreciates against the U.S. dollar.

Use of leverage can result in additional risk and cost, and can magnify
the effect of any losses.

The risks of investing in the Fund are spelled out in the prospectus,
shareholder reports and other regulatory filings.

The information presented is not intended to constitute an investment
recommendation for, or advice to, any specific person. By providing this
information, First Trust is not undertaking to give advice in any
fiduciary capacity within the meaning of ERISA and the Internal Revenue
Code. First Trust has no knowledge of and has not been provided any
information regarding any investor. Financial advisors must determine
whether particular investments are appropriate for their clients. First
Trust believes the financial advisor is a fiduciary, is capable of
evaluating investment risks independently and is responsible for
exercising independent judgment with respect to its retirement plan
clients.

The Fund's daily closing New York Stock Exchange price and net asset
value per share as well as other information can be found at www.ftportfolios.com
or by calling 1-800-988-5891.

View Comments and Join the Discussion!