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Neuberger Berman Announces Monthly Distribution

On January 31, 2025, Neuberger Berman Energy Infrastructure and Income Fund Inc. (NYSE American: NML) declared its monthly distribution of $0.0584 per share. This announcement is significant for investors who are looking for stable returns in a fluctuating market. The declared distribution will be payable on February 28, 2025, and those who hold shares as of February 18, 2025, will be eligible for the payout.

The Neuberger Berman Energy Infrastructure and Income Fund aims to continually provide its shareholders with regular monthly distributions, which are determined based on the anticipated net rate of return from its investments and several other factors. Currently, the fund plans to distribute these payouts from its cash flow, which comprises cash and distributions from master limited partnerships (MLPs), dividends from common stocks, interest from debt instruments, and income from various held investments, after accounting for operating expenses and taxes.

It's essential to note that a portion of the distribution may be categorized as a non-taxable return of capital. A return of capital represents a portion of a shareholder's uninvested capital, rather than profit, and can impact the tax implications for investors. When the fund issues a return of capital, it reduces the shareholder's basis in their fund shares, which can lead to increased capital gains or decreased losses when those shares are sold. Investors should be aware that there is no guarantee regarding the continuity of any specific amount being distributed or that distributions will solely derive from the fund’s earnings.

In accordance with Section 19 of the Investment Company Act of 1940, the fund will inform shareholders of any distributions that do not entirely consist of net investment income. This notice serves informational purposes, focusing on the estimated portions of the distribution relating to net investment income, capital gains, and returns of capital. Investors will receive the final determination of the source and tax characteristics of all distributions by the end of 2025.

Unlike many investment entities, the fund is subject to federal income tax on its taxable income. As a result, any taxes paid will reduce the capital available for distribution to shareholders, likely leading to lower payouts compared to direct investments in MLPs. This tax structure should be considered by potential investors when evaluating the fund's overall value.

About Neuberger Berman

Founded in 1939, Neuberger Berman is a private, employee-owned investment management firm with over 2,800 employees across 26 countries. With assets under management totaling $508 billion, the firm delivers a comprehensive suite of equity, fixed-income, private equity, real estate, and hedge fund portfolios to institutions, financial advisors, and individuals worldwide. Their investment strategy hinges on active management and fundamental research, reinforcing their commitment to responsible, sustainability-focused investing, recognized as a leader in the space.

As noted by Pensions & Investments, Neuberger Berman has consistently been rated as one of the best companies to work for in asset management, holding either first or second place in the category for the last decade. Interested parties can learn more about their offerings by visiting www.nb.com.

Conclusion

Neuberger Berman’s announcement of its monthly distribution exemplifies their dedication to maintaining shareholder value amidst market volatility. Investors should stay attentive to future updates to optimize their investment strategies while considering the specific tax implications associated with their distributions.