ClearBridge MLP and Midstream Total Return Fund Inc. Announces Unaudited Balance Sheet Information as of January 31, 2024
ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) announced their unaudited statement of assets and liabilities, net asset value, and asset coverage ratio as of January 31, 2024. The Fund's net assets were $275.8 million, with a net asset value per share of $40.05. The asset coverage ratio under the Investment Company Act of 1940 was 424% for senior indebtedness and 349% for total leverage. Top ten equity holdings included Energy Transfer LP, ONEOK Inc., and MPLX LP.
The disclosed net asset value (NAV) per share of the ClearBridge MLP and Midstream Total Return Fund Inc. (CTR) provides an immediate snapshot of the fund's financial health. An NAV of $40.05 indicates the value of a single share based on the fund's underlying assets minus its liabilities. This figure is crucial for investors, as it reflects the intrinsic value of their investment. The asset coverage ratios, particularly the 424% with respect to senior indebtedness and 349% for total leverage, are significantly above the 300% minimum required by the 1940 Act, suggesting a strong financial buffer against potential market downturns.
Furthermore, the top ten equity holdings, comprising nearly 70% of total investments, predominantly in the energy sector, offer insights into the fund's concentration risk. The performance of these holdings can substantially influence the fund's overall returns. Given the volatility in energy markets, driven by fluctuating commodity prices and regulatory changes, the fund's focus on this sector could either spell higher returns or increased risk exposure for investors.
An examination of ClearBridge MLP and Midstream Total Return Fund Inc.'s portfolio composition reveals a strategic emphasis on midstream energy infrastructure companies, such as Energy Transfer LP and ONEOK Inc. These companies are integral to the energy supply chain, dealing with the transportation, storage and processing of energy commodities. As the energy landscape evolves with the push towards renewables and sustainability, these companies may face both challenges and opportunities. The fund's performance will be closely tied to how well these midstream players adapt to changing energy demands and regulatory pressures.
Investors should monitor the fund's quarterly filings on Form N-PORT for changes in portfolio holdings and strategies, as these will provide deeper insights into the fund's risk management and adaptability to market conditions. The fund's management by Franklin Templeton Fund Adviser, LLC, a subsidiary of Franklin Resources, adds a layer of reputation and expertise, which could be a deciding factor for investment considerations.
CTR's compliance with the Investment Company Act of 1940, particularly the high asset coverage ratios reported, indicates a robust regulatory posture, minimizing the risk of statutory penalties or investor litigation. These ratios, which measure the fund's ability to cover debt with its assets, are a testament to the fund's conservative leverage strategy and prudent financial management. Investors and analysts should, however, remain vigilant about the unaudited nature of this financial data. While unaudited reports can provide timely information, they lack the assurance that comes from a formal audit. Any discrepancies found later could impact investor trust and the fund's market performance.
02/07/2024 - 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 January 31, 2024.
As of January 31, 2024, the Fund’s net assets were $275.8 million $40.05 424% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 349% .
As of January 31, 2024
Amount (millions) Per Share
Investments
$
381.5
$
55.40
Cash and Cash Equivalents
5.5
0.80
Other Assets
15.6
2.26
Total Assets
$
402.6
$
58.46
Senior Notes*
$
15.6
$
2.27
Loans Outstanding*
75.5
10.96
Mandatory Redeemable Preferred Shares*
19.5
2.83
Total Leverage
$
110.6
$
16.06
Other Liabilities
$
16.2
$
2.35
Total Liabilities
$
16.2
$
2.35
Net Assets
$
275.8
$
40.05
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 349% .
Top Ten Equity Holdings (as of January 31, 2024)**
Market Value
Name
(millions)
% of Investments
***
Energy Transfer LP
$
45.8
12.0
%
ONEOK Inc.
$
31.8
8.3
%
MPLX LP
$
29.8
7.8
%
Targa Resources Corp.
$
27.7
7.2
%
Enterprise Products Partners LP
$
25.8
6.8
%
Western Midstream Partners LP
$
25.5
6.7
%
Williams Cos. Inc.
$
21.6
5.7
%
Enbridge Inc.
$
21.2
5.5
%
Plains All American Pipeline LP
$
19.2
5.0
%
Plains GP Holdings LP
$
18.1
4.7
%
$
266.5
69.7
%
** 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/20240207788631/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
What is the net asset value per share for ClearBridge MLP and Midstream Total Return Fund Inc. as of January 31, 2024?
The net asset value per share was $40.05.
What was the total net assets for the Fund as of January 31, 2024?
The total net assets were $275.8 million.
What was the asset coverage ratio under the Investment Company Act of 1940 for senior indebtedness?
The asset coverage ratio for senior indebtedness was 424%.
What are the top ten equity holdings for ClearBridge MLP and Midstream Total Return Fund Inc. as of January 31, 2024?
The top ten equity holdings included Energy Transfer LP, ONEOK Inc., and MPLX LP.
Who advises ClearBridge MLP and Midstream Total Return Fund Inc.?
The Fund is advised by Franklin Templeton Fund Adviser, LLC and subadvised by ClearBridge Investments, LLC.
