#USA #New York #Neuberger Berman #NML #Energy Fund

Neuberger Berman Energy Infrastructure Fund Announces Monthly Distribution

Neuberger Berman Energy Infrastructure and Income Fund Inc. (NYSE American: NML) recently made a noteworthy announcement regarding its distribution policy. The fund declared it will distribute $0.0584 per share of its common stock. The declaration, made on March 3, 2025, reveals the commitment of the fund to maintain regular cash distributions to its shareholders.

Key Details of the Distribution

The upcoming distribution is scheduled to be paid out on March 31, 2025, with the record date being March 17, 2025. Importantly, the same date will also serve as the ex-date, which means that any shareholders who purchase shares on or after this date will not be eligible for this distribution.

Neuberger Berman has outlined its strategy to ensure monthly cash distributions at a fixed rate, which will be influenced by projected net returns from the fund's investments and other business variables. This approach demonstrates a careful consideration of the fund’s performance and market conditions, and it underscores the fund's commitment to its investors.

Understanding the Composition of Distributions

The cash distributions will primarily stem from the fund's distributable cash flow. This includes various revenue sources like dividends from common stocks, cash distributions from master limited partnerships (MLPs), interest from debt holdings, and other investments, all offset by the fund's operational expenses, which may include leverage costs and taxes on taxable income.

It's important for investors to note that a part of distribution payments may constitute a non-taxable return of capital. This means that such payments represent a return of the shareholders' original investments, not just profits or dividends. Therefore, if the fund pays such amounts, the basis in the fund shares would be reduced, potentially leading to an increased capital gain or reduced capital loss when the shares are sold.

While the declaration reflects the fund’s current operational strategy, Neuberger Berman also urges shareholders to recognize that there are no guarantees regarding the ability to make distributions of a specified amount on a regular basis. Factors like market volatility and investment performance can influence the distribution amount.

Compliance and Transparency

In alignment with regulatory requirements, specifically Section 19 of the Investment Company Act of 1940, Neuberger Berman will issue a notice for any distributions that do not solely comprise of net investment income. This notice, while for informational purposes and not for tax reporting, will outline important details regarding the distribution's components, including estimations of net investment income and capital gains.

The fund’s tax obligations also differs from those of conventional investment companies. Unlike most funds, this fund is subject to federal income tax on taxable income, which can impact the amount available for distribution to shareholders.

About Neuberger Berman

Founded in 1939, Neuberger Berman is an employee-owned investment management firm that has grown significantly, now employing over 2,800 staff in 26 countries. The firm manages an impressive portfolio worth $508 billion across various asset classes including equities, fixed income, and private equity, catering to a global clientele consisting of institutions, advisors, and individuals. Neuberger Berman’s recognized investment philosophy emphasizes active management and fundamental research, reinforced by a solid reputation for sustainable investing practices.

For more information about Neuberger Berman and its investment strategies and offerings, interested parties can visit their official website at www.nb.com. The date of data referenced is as of December 31, 2024.

Final Remarks

With the latest announcement from Neuberger Berman, investors should remain attentive to how these distributions align with their investment strategies and overall portfolio management. Understanding the intricacies and components of such distributions is essential for making informed financial decisions moving forward.