Neuberger Berman Fund Announces Latest Monthly Distribution of $0.0584 Per Share

Neuberger Berman Energy Infrastructure and Income Fund's Monthly Distribution Announcement



On April 30, 2025, Neuberger Berman Energy Infrastructure and Income Fund Inc. (common stock trading on NYSE American under the symbol NML) disclosed its latest distribution of $0.0584 per share of common stock. This announcement reiterates the Fund's dedication to delivering value to its shareholders through consistent monthly cash distributions.

The outlined distribution is scheduled for payment on May 30, 2025, with a record date and ex-date both falling on May 15, 2025. As part of its ongoing strategy, the Fund plans to maintain regular monthly distributions anchored in the anticipated net rate of return from its diverse investments. The distribution is designed not just to reward stockholders, but also to be adjusted periodically based on various financial factors that affect the Fund's operational health.

Neuberger Berman clarifies that its anticipated distributions will typically be funded through its distributable cash flow. This cash flow is generated from a mix of returns, including contributions from master limited partnerships (MLPs), common stock dividends, interest from debt instruments, and other relevant investment income. However, it is also important to note that the operational expenses of the Fund, such as leverage costs and taxes on taxable income, will be deducted from this cash flow, potentially impacting the amount available for distribution.

A significant aspect of this announcement is that a portion of the distributions may be classified as a non-taxable return of capital. This is crucial for shareholders, as it signifies a return of their original investment rather than a profit-sharing dividend. Stockholders should be cautious, as receiving a return of capital will affect their cost basis in the shares, impacting future capital gains or losses when they sell.

Under Section 19 of the Investment Company Act of 1940, Neuberger Berman will notify shareholders if any distribution comprises more than just net investment income. This notification will act solely as informational, detailing portions of the distribution such as net investment income, capital gains, and return of capital, without tax implications.

Despite the Fund's goal of ensuring consistent distributions, Neuberger Berman cautions that there is no guarantee of maintaining a set distribution rate. Factors like fluctuations in the securities market, economic downturns, and competition with other investment companies may influence the Fund's capacity to continue these payments.

Neuberger Berman, the entity behind the Fund, is a prominent player in the investment management space, founded in 1939. The company is employee-owned and independent, with a workforce exceeding 2,800 across 26 countries and managing around $515 billion across various asset classes. Its reputation as a favorable workplace has been recognized repeatedly, ranking it among the top firms in money management.

For more detailed insights into Neuberger Berman's funds and investment strategies, interested parties can visit their official website at www.nb.com. This transparency reinforces the company’s commitment to their stakeholders and investors, ensuring they remain informed about their complexities and potentials.

In summary, this recent distribution announcement from Neuberger Berman not only highlights the fund's ongoing commitment to share value with its investors, but it also reflects the complexities involved in investment management and the careful navigation required to balance shareholder returns with operational expenses and market conditions.

Topics Financial Services & Investing)

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