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Neuberger Berman Energy Infrastructure Fund Announces Cash Distribution

On September 30, 2025, the Neuberger Berman Energy Infrastructure and Income Fund Inc. (NYSE American: NML) made an important announcement regarding its cash distributions for shareholders. The fund declared a distribution amount of $0.0584 per share of common stock, set to be paid on October 31, 2025. This distribution will be made to all shareholders on record as of October 15, 2025, with the ex-dividend date also set for October 15, 2025.

The fund has expressed its commitment to making consistent monthly cash distributions to common stockholders. This regular payment structure is primarily determined based on the fund's projected net rate of return from its diverse investments, subject to periodic review and adjustments. Importantly, the fund plans to pay these distributions from its distributable cash flow, which comprises various income sources including cash and paid-in-kind distributions from master limited partnerships (MLPs) and dividends from common stocks. However, this cash flow will be reduced by current operating expenses and taxes.

Understanding the Distribution as Return of Capital

An interesting aspect of this distribution is that a portion of it is expected to be categorized as a non-taxable return of capital. A return of capital indicates that the distribution isn't derived solely from earnings but instead represents a return of the shareholders' initial investment, which will adjust the basis in their shares and affect the capital gains or losses when sold. It is essential for investors to distinguish between returns of capital and traditional dividends as they have different tax implications.

Neuberger Berman intends to comply with the Investment Company Act of 1940, providing necessary notifications regarding any distributions that do not consist exclusively of net investment income. These notifications aim to keep shareholders informed about the nature of their distributions, including an estimation of how much is attributed to net investment income, capital gains, and returns of capital.

Tax Considerations and the Role of Neuberger Berman

Unlike most investment entities, the fund is subject to federal income tax on taxable income. Therefore, any taxes levied would decrease the available funds for distributions to shareholders. Consequently, the distributions investors receive from the fund are likely to be lower than they might receive if they invested directly into MLPs. This unique position emphasizes the importance for investors to weigh their options carefully before proceeding.

About Neuberger Berman: Founded in 1939, Neuberger Berman is an independent, employee-owned investment manager with a staggering $538 billion in managed assets. Their diverse portfolio encompasses equities, fixed income, private equity, real estate, and hedge funds, catering to various global entities and individuals. Neuberger Berman is widely recognized for its dedication to active management, rigorous research, and a commitment to engaged ownership.

The firm has consistently garnered accolades from 'Pensions & Investments', recognized as one of the top places to work in the money management sector for over a decade.

As they move forward, the fund highlights that market conditions, regulatory changes, and internal management capabilities may affect returns and future distributions. Investors should stay abreast of developments affecting the fund’s performance and distribution outlook.

For further details on Neuberger Berman and its investment strategies, you can visit their official website at www.nb.com.