ClearBridge MLP and Midstream Total Return Fund Inc. Announces Unaudited Balance Sheet Information as of December 31, 2023

Rhea-AI Summary

ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) announced unaudited financial data as of December 31, 2023. The net assets were $269.5 million, with a net asset value per share of $39.13. The Fund's asset coverage ratio under the 1940 Act was 417% for senior indebtedness and 344% for total leverage.

Insights

Financial Analyst

The disclosure of the net asset value (NAV), asset coverage ratio and top equity holdings for ClearBridge MLP and Midstream Total Return Fund Inc. (CTR) provides critical information for current and prospective investors. The reported NAV of $39.13 per share reflects the intrinsic value of the shares based on the underlying assets minus liabilities. The asset coverage ratios, at 417% for senior indebtedness and 344% for total leverage, significantly exceed the 300% minimum requirement stipulated by the 1940 Act, indicating a robust cushion against market volatility and credit risk.

CTR's investment focus, as evidenced by its top holdings, is heavily weighted towards energy infrastructure companies such as Energy Transfer LP and ONEOK Inc. This concentration in the midstream sector suggests a strategy targeting stable cash flows generated from pipeline and storage operations. However, investors should be aware that the sector's performance is tied to energy commodity prices and regulatory changes, which can introduce volatility.

The fund's leverage usage, as indicated by the total leverage asset coverage ratio, is a key metric for assessing risk. While leverage can amplify returns, it can also increase the potential for losses, making the fund's performance more sensitive to changes in the value of its underlying investments. The current leverage levels appear manageable, but investors should monitor these ratios over time for any significant changes.

Market Research Analyst

An analysis of CTR's top ten equity holdings, representing 70.5% of total investments, shows a strategic concentration in key players within the midstream energy sector. This sector is essential for the transportation, storage and processing of energy commodities and its performance is often linked to the broader energy market dynamics. The fund's concentration in this sector suggests a bullish stance on the midstream market, potentially banking on increasing energy demand and infrastructure development.

It is also important to note that the fund's portfolio is managed by Franklin Templeton Fund Adviser and subadvised by ClearBridge, both subsidiaries of Franklin Resources. The backing by reputable management firms can be a reassuring factor for investors, as it often correlates with rigorous investment processes and risk management practices.

However, the non-diversified status of the fund means it may be more susceptible to concentration risk, where adverse developments in a single holding or sector could disproportionately impact the fund's performance. Investors should balance the fund's sector focus with diversification across other asset classes or sectors to mitigate this risk.

Legal Expert

From a regulatory standpoint, CTR's compliance with the Investment Company Act of 1940 is critical for investor protection. The asset coverage ratio, which measures the fund's ability to cover its debt obligations, is a key indicator of financial health and legal compliance. CTR's reported ratios well above the minimum requirement provide a layer of security for investors against potential default risks.

Moreover, the fund's adherence to SEC reporting requirements, including the filing of semi-annual and annual reports and schedule of portfolio holdings, ensures transparency and allows investors to make informed decisions. The availability of these documents on the SEC's website enhances investor access to fund operations and holdings, facilitating due diligence processes.

Investors should also recognize that the fund's financial data is unaudited, which means it has not been formally reviewed by an independent auditor. While this is not uncommon for interim financial statements, it does suggest that investors should exercise caution and look forward to audited reports for official financial validation.

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 December 31, 2023.

As of December 31, 2023, the Fund’s net assets were $269.5 million, and its net asset value per share was $39.13. The Fund’s asset coverage ratio under the Investment Company Act of 1940 (the “1940 Act”) with respect to senior indebtedness was 417% and the Fund’s asset coverage ratio under the 1940 Act with respect to total leverage was 344%.

	As of December 31, 2023
	Amount (millions)			Per Share
Investments	$	367.1		$	53.30
Cash and Cash Equivalents		15.2			2.21
Other Assets		0.5			0.07
Total Assets	$	382.8		$	55.58
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	$	2.7		$	0.39
Total Liabilities	$	2.7		$	0.39
Net Assets	$	269.5		$	39.13
Outstanding Shares		6,886,833
* The Fund's asset coverage ratio under the 1940 Act with respect to senior indebtedness was 417%.
* The Fund's asset coverage ratio under the 1940 Act with respect to total leverage was 344%.
Top Ten Equity Holdings (as of December 31, 2023)**
	Market Value
Name	(millions)			% of Investments			***
Energy Transfer LP	$	44.2			12.0	%
ONEOK Inc.	$	31.9			8.7	%
MPLX LP	$	28.4			7.7	%
Targa Resources Corp.	$	28.3			7.7	%
Western Midstream Partners LP	$	26.0			7.1	%
Enterprise Products Partners LP	$	23.9			6.5	%
Enbridge Inc.	$	20.1			5.5	%
Williams Cos. Inc.	$	19.6			5.3	%
Plains All American Pipeline LP	$	18.9			5.1	%
Plains GP Holdings LP	$	17.9			4.9	%
	$	259.2			70.5	%
** 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 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/20240108492165/en/

Investor: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What is the net asset value of ClearBridge MLP and Midstream Total Return Fund Inc. as of December 31, 2023?

The net asset value was $269.5 million with a net asset value per share of $39.13.

What is the asset coverage ratio of the Fund under the 1940 Act?

The asset coverage ratio was 417% for senior indebtedness and 344% for total leverage as of December 31, 2023.

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.

Where can shareholders obtain information on Form N-PORT or a semi-annual or annual report from the Fund?

Shareholders can call 1-888-777-0102 or visit the SEC's website at www.sec.gov for reports and information.