FEI: Energy Infrastructure Fund Facing Major Risks

Robert Boslego
5.76K Followers

Summary

  • FEI is a closed-end energy infrastructure fund founded in 2012.
  • Its 10-year total return is a loss.
  • Its holdings are primarily petroleum-centric, as opposed to natural gas or NGL-oriented.
  • Its principal risks are economic recession, high interest rates, and a strong dollar.
  • Given the economic outlook, its short- and long-term prospects are dim.

Oil Or Gas Transportation With Blue Gas Or Pipe Line Valves On Soil And Sunrise Background

onurdongel

The First Trust MLP and Energy Income Fund (FEI), the "Fund", is a non-diversified, closed-end management investment company.

According to the Investment Advisor, First Trust Advisors L.P.:

The Fund's investment objective is to seek a high level of total

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This article was written by

5.76K Followers
Managing Director, Boslego Risk ServicesHarvard College, Economics (Honors), BA Undergraduate thesis: "OPEC Pricing Strategy." Harvard Business School Case Study: "Industrialized World and Oil."Stanford University Graduate School of Business, MBA I founded Boslego Risk Services and became a recognized expert in the area of energy price risk management (hedging) and trading, providing oil and natural gas hedging strategies to major oil companies such as Exxon, Shell, Mobil, Chevron, Texaco and Phillips; to the national oil companies of Norway, Venezuela, Mexico, Canada, France and Italy; to major users of energy products, such as Delta Airlines, United Airlines, Burlington-Northern Railroad, and Canadian Pacific Railway.I also provided frequent market assessments and recommended trading positions to major trading firms, such as Enron, Phibro, Sempra and Vitol, and to large hedge funds.As the recognized expert in energy hedging, I was selected by the former president, John Treat, of the New York Mercantile Exchange (NYMEX) to write the chapter on hedging in his book, Energy Futures (1990, 2000).

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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