Neuberger Berman Energy Infrastructure and Income Fund Stock Price, News & Analysis

Neuberger Energy Infrastructure and Income Fund Inc. (NYSE American: NML), also referred to in press releases as Neuberger Berman Energy Infrastructure and Income Fund Inc., is a closed-end investment management company in the finance and insurance sector. According to available information, the Fund invests in capital markets and energy-related areas such as chemicals, oil, gas and consumable fuels, electric utilities, independent power and renewable electricity producers, and multi-utilities, with a significant emphasis on oil, gas and consumable fuels.

The Fund is managed by Neuberger Berman Investment Advisers LLC. Press releases describe Neuberger Berman as an employee-owned, private, independent investment manager founded in 1939. The firm manages portfolios across asset classes including equities, fixed income, private equity, real estate and hedge funds for institutions, advisors and individuals. Its investment philosophy is described as based on active management, fundamental research and engaged ownership.

Investment focus and income strategy

The Fund states that it intends to make regular monthly cash distributions to holders of its common stock at a fixed rate per share, determined with reference to the projected net rate of return of its investments and other factors, subject to ongoing review and adjustment. The Fund indicates that it intends to pay its regular monthly distributions out of its distributable cash flow. As described in its public announcements, distributable cash flow generally consists of:

• Cash and paid-in-kind distributions from master limited partnerships ("MLPs") or their affiliates
• Dividends from common stocks
• Interest from debt instruments
• Income from other investments held by the Fund
• Less current or accrued operating expenses, including leverage costs, if any, and taxes on its taxable income

The Fund notes that it is subject to federal income tax on its taxable income, unlike many investment companies. Any taxes paid by the Fund reduce the amount available to pay distributions to stockholders, and its disclosures state that investors in the Fund will likely receive lower distributions than if they invested directly in MLPs.

Return of capital and tax characteristics

In multiple distribution announcements, the Fund explains that it expects a portion of its distributions to stockholders to constitute a non-taxable return of capital. A return of capital is described as a distribution that represents a return of a common stockholder's original investment and is distinguished from a dividend. When the Fund pays a return of capital, a common stockholder's basis in Fund shares is reduced, which can increase a capital gain or reduce a capital loss upon the sale of those shares.

The Fund emphasizes that there is no assurance it will always be able to pay a distribution of any particular amount, or that a given distribution will consist solely of current and accumulated earnings and profits. In compliance with Section 19 of the Investment Company Act of 1940, as amended, the Fund states that it would provide a notice for any distribution that does not consist solely of net investment income. This notice is described as informational rather than for tax reporting purposes and would disclose estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital. The final determination of the source and tax characteristics of all distributions for a given year is made after the end of that year.

Regulatory framework and risk disclosures

As a closed-end investment company, the Fund operates within the framework of the Investment Company Act of 1940. Its public communications reference Section 19 requirements for distribution notices. The Fund also includes forward-looking statements language in its press releases, noting that statements looking forward in time involve risks and uncertainties.

Among the risks and uncertainties cited are the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, the inability of the Fund's investment adviser to attract or retain key employees, the inability of the Fund to implement its investment strategy, the inability of the Fund to manage rapid expansion, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

Relationship with Neuberger Berman

The Fund’s disclosures highlight its connection to Neuberger Berman, which is described as an employee-owned, private, independent investment manager founded in 1939 with thousands of employees in multiple countries. Neuberger Berman manages hundreds of billions of dollars across equities, fixed income, private equity, real estate and hedge fund portfolios. The firm’s philosophy is said to focus on active management, fundamental research and engaged ownership, and its workplace recognition by Pensions & Investments is noted in the Fund’s press releases.

These characteristics provide context for the Fund’s positioning as an energy infrastructure and income-focused closed-end fund within the broader capital markets and energy-related investment universe.

FAQs about Neuberger Energy Infrastructure and Income Fund Inc. (NML)

• What type of company is Neuberger Energy Infrastructure and Income Fund Inc.?
  According to available information, it is a closed-end investment management company that invests in capital markets and energy-related sectors such as chemicals, oil, gas and consumable fuels, electric utilities, independent power and renewable electricity producers, and multi-utilities.
• On which exchange does NML trade?
  Press releases state that Neuberger Berman Energy Infrastructure and Income Fund Inc. trades on the NYSE American under the ticker symbol NML.
• How does the Fund describe its distribution policy?
  The Fund states that it intends to make regular monthly cash distributions to holders of its common stock at a fixed rate per share, determined based on the projected net rate of return of its investments and other factors, subject to ongoing review and adjustment.
• What does the Fund consider distributable cash flow?
  Distributable cash flow is described as generally consisting of cash and paid-in-kind distributions from MLPs or their affiliates, dividends from common stocks, interest from debt instruments and income from other investments, less current or accrued operating expenses, including leverage costs, if any, and taxes on its taxable income.
• What is a return of capital in the context of NML’s distributions?
  The Fund explains that a return of capital is a distribution representing a return of a common stockholder's original investment, not a dividend. When a return of capital is paid, a stockholder's basis in Fund shares is reduced, which can increase a capital gain or reduce a capital loss when those shares are sold.
• Are NML’s distributions guaranteed?
  The Fund explicitly notes that there is no assurance it will always be able to pay a distribution of any particular amount, or that a distribution will consist solely of its current and accumulated earnings and profits.
• How are the tax characteristics of NML’s distributions determined?
  The Fund states that, in line with Section 19 of the Investment Company Act of 1940, it would provide notices for distributions that do not consist solely of net investment income. The final determination of the source and tax characteristics of all distributions for a year is made after the end of that year.
• Why does the Fund mention federal income tax at the Fund level?
  Public disclosures indicate that the Fund is subject to federal income tax on its taxable income, unlike many investment companies. Any taxes paid by the Fund reduce the amount available to pay distributions, and the Fund notes that investors will likely receive lower distributions than if they invested directly in MLPs.
• Who manages the Fund’s investments?
  Press releases identify Neuberger Berman Investment Advisers LLC as the investment adviser to the Fund. Neuberger Berman is described as an employee-owned, private, independent investment manager founded in 1939.
• What risks does the Fund highlight in its public statements?
  The Fund lists risks including declines in securities markets or Fund performance, economic downturns, competition from other closed-end investment companies, changes in government policy or regulation, challenges in attracting or retaining key employees at the adviser, difficulties in implementing its investment strategy, managing rapid expansion, and unforeseen costs or effects related to legal proceedings or regulatory investigations.