ClearBridge MLP and Midstream Total Return Fund Inc. Announces Unaudited Balance Sheet Information as of March 31, 2024
ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) reported its financial data as of March 31, 2024. The Fund's net assets were $311.8 million, with a net asset value per share of $45.28. The asset coverage ratio for senior indebtedness was 424%, and for total leverage was 382%. The top ten equity holdings accounted for 71.7% of total investments.
The disclosed net asset value (NAV) per share is a critical metric for investors as it represents the value of their shares in the fund. The NAV of $45.28 suggests that the fund's investments and cash position are being managed to provide a positive return, given the market value of investments is reported at $421.2 million. The high asset coverage ratios, 424% for senior indebtedness and 382% for total leverage, indicate a robust capital structure and a conservative leverage approach, which is often seen as a sign of financial stability and prudence in fund management.
Furthermore, the top ten equity holdings, comprising 71.7% of the total equity investments, are concentrated in the energy sector. This concentration could imply sector-specific risks such as volatility in energy prices, regulatory changes and shifts in consumer demand. However, it also suggests a potential for high returns, given the energy sector's performance can be cyclical and correlated with economic growth. Investors should be aware of the inherent sector concentration risk in this fund.
An analysis of the Fund's equity holdings reveals a significant investment in midstream energy companies, which are involved in the transportation, storage and wholesale marketing of crude oil, natural gas and refined products. The performance of these companies and thus the fund's returns, are closely tied to the infrastructure demand and energy commodity markets. Current trends in the energy sector, like the transition towards renewable energy sources and the potential for increased infrastructure spending, could impact these companies' future performance.
Investors should consider the broader industry dynamics, including geopolitical tensions, environmental policies and technological advancements in energy production and distribution. These factors can affect the midstream sector's profitability and, by extension, the performance of the Fund. The market values of the top holdings provide a snapshot of the Fund's investment strategy and market capitalization within the midstream sector, which can be integral in assessing the Fund's potential growth and risk profile.
The Fund's asset coverage ratios significantly exceed the 300% requirement under the 1940 Act, which is a positive indicator of its ability to meet financial obligations. This high coverage ratio may protect investors in scenarios of market downturns, as it suggests the Fund has a substantial buffer to absorb losses before impacting investor capital. However, the concentration in energy-related equities should be evaluated in the context of the current economic climate, including interest rate trends, inflation and the economic cycle, as these factors can influence energy consumption and investment in infrastructure.
Given the cyclical nature of the energy sector, the Fund's performance may be sensitive to economic downturns or upswings. The Fund's strategy could benefit from periods of economic expansion and increased energy demand, but it could also face challenges during economic contractions. Investors should consider the economic outlook when evaluating the potential performance of this Fund.
04/05/2024 - 08:00 AM
NEW YORK --(BUSINESS WIRE)--
ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) announced today the unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of March 31, 2024.
As of March 31, 2024, the Fund’s net assets were $311.8 million $45.28 424% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 382% .
As of March 31, 2024
Amount (millions) Per Share
Investments
$
421.2
$
61.17
Cash and Cash Equivalents
3.4
0.49
Other Assets
13.1
1.90
Total Assets
$
437.7
$
63.56
Senior Notes*
$
15.6
$
2.26
Loans Outstanding*
84.0
12.20
Mandatory Redeemable Preferred Shares*
11.0
1.60
Total Leverage
$
110.6
$
16.06
Income Tax Payable †
$
0.3
$
0.04
Deferred Tax Liability
1.3
0.19
Other Liabilities
13.7
1.99
Total Liabilities
$
15.3
$
2.22
Net Assets
$
311.8
$
45.28
Outstanding Shares
6,886,833
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 424% .
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 382% .
† Income tax payable, previously netted in Other Liabilities, resulted from portfolio turnover.
Top Ten Equity Holdings (as of March 31, 2024)**
Market Value
Name
(millions)
% of Investments
***
Energy Transfer LP
$
47.5
11.3
%
ONEOK Inc.
$
37.4
8.9
%
Targa Resources Corp.
$
36.5
8.7
%
MPLX LP
$
32.1
7.6
%
Western Midstream Partners LP
$
31.6
7.5
%
Enterprise Products Partners LP
$
28.1
6.7
%
Williams Cos. Inc.
$
24.3
5.8
%
Plains All American Pipeline LP
$
21.9
5.2
%
Enbridge Inc.
$
21.6
5.1
%
Plains GP Holdings LP
$
20.4
4.9
%
$
301.4
71.7
%
** Subject to change at any time
*** Percent of Total Equity Investments
ClearBridge MLP and Midstream Total Return Fund Inc. is a non-diversified, closed-end management investment company, which is advised by Franklin Templeton Fund Adviser, LLC (“FTFA”) (formerly known as Legg Mason Partners Fund Advisor, LLC) and subadvised by ClearBridge Investments, LLC (“ClearBridge”). FTFA and ClearBridge are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
This financial data is unaudited.
The Fund files its semi-annual and annual reports with the Securities and Exchange Commission (“SEC”), as well as its complete schedule of portfolio holdings for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website at www.sec.gov . To obtain information on Form N-PORT or a semi-annual or annual report from the Fund, shareholders can call 1-888-777-0102 .
For more information about the Fund, please call 1-888-777-0102 or consult the Fund’s website at www.franklintempleton.com/investments/options/closed-end-funds . Hard copies of the Fund’s complete audited financial statements are available free of charge upon request.
Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Fund.
Category: Financials
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20240405807405/en/
Investor: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
What is ClearBridge MLP and Midstream Total Return Fund Inc.'s ticker symbol?
The ticker symbol for ClearBridge MLP and Midstream Total Return Fund Inc. is CTR.
What was the net asset value per share of ClearBridge MLP and Midstream Total Return Fund Inc. as of March 31, 2024?
The net asset value per share of ClearBridge MLP and Midstream Total Return Fund Inc. was $45.28 as of March 31, 2024.
What was the asset coverage ratio for senior indebtedness of ClearBridge MLP and Midstream Total Return Fund Inc. as of March 31, 2024?
The asset coverage ratio for senior indebtedness of ClearBridge MLP and Midstream Total Return Fund Inc. was 424% as of March 31, 2024.
What was the total leverage asset coverage ratio of ClearBridge MLP and Midstream Total Return Fund Inc. as of March 31, 2024?
The total leverage asset coverage ratio of ClearBridge MLP and Midstream Total Return Fund Inc. was 382% as of March 31, 2024.
What percentage of total investments did the top ten equity holdings account for in ClearBridge MLP and Midstream Total Return Fund Inc. as of March 31, 2024?
The top ten equity holdings accounted for 71.7% of total investments in ClearBridge MLP and Midstream Total Return Fund Inc. as of March 31, 2024.
