First Trust New Opportunities MLP & Energy FundNYSE: FPL

MIAMI , May 30, 2024 /PRNewswire/ -- Since 2011, Atlantic Sapphire ASA ("Atlantic Sapphire"; OSE:ASA / OTCQX: AASZF) has been revolutionizing the seafood industry with a proprietary aquaculture system to sustainably deliver ocean-safe seafood across North America. This month, the company is pushing the boundaries even further, announcing it will be joining the Florida Power & Light Company (FPL) SolarTogether® Program in an effort to decrease its electric carbon footprint by offsetting 45% of its total energy consumption with solar.

MLP CEFs are making moves to narrow discount differentials, including share buybacks and merging into ETFs. One example is FPL, which will merge into the FT Energy Income Partners Enhanced Income ETF (EIPI) in May 2024. Currently, purchasing FPL provides a 2% discount to NAV that will vanish post-merger, giving investors access to the MLP asset class in a less risky and unleveraged format.

The First Trust New Opportunities MLP & Energy Fund provides a way for retirees and savers to invest in master limited partnerships and midstream infrastructure companies. FPL has a yield of 6.47%, higher than some energy infrastructure corporations and the S&P 500 Index. It is, unfortunately, lower than what peer funds possess. The fund's performance has been strong, outperforming the Alerian MLP Index and delivering better returns even after distributions are included.

First Trust New Opps MLP & Energy Fund is a closed-end fund that primarily invests in midstream master limited partnerships and electric utilities. The fund has historically underperformed the Alerian MLP Index and has a lower yield. Despite its underperformance, the FPL fund is trading at a significant discount to its net asset value, which could present an opportunity for investors.