Duff & Phelps Select MLP and Midstream Energy Fund Inc. Provides Update on Liquidation Proposal

Rhea-AI Summary

On July 24, 2020, Duff & Phelps Select MLP and Midstream Energy Fund (NYSE: DSE) announced it failed to secure enough votes to approve a proposal for liquidation despite a plurality of shareholder votes. The fund’s management cited volatility in the MLP sector and non-compliance with NYSE listing standards due to share prices falling below $1.00 over 30 days. Management plans to keep the fund operational, waiving 50% of management fees effective August 1, after previously waiving all fees since March 2020. Investors are warned of risks including potential loss of principal.

Positive

• Management will continue to operate the fund and explore options to benefit shareholders.
• 50% reduction in management and administration fees effective August 1, 2020.

Negative

• Failed to achieve required majority for liquidation suggests shareholder dissatisfaction.
• Non-compliance with NYSE standards may risk future listing.
• Share prices have remained below $1.00 for over 30 days, indicating poor market performance.

HARTFORD, Conn., July 24, 2020 /PRNewswire/ -- The Duff & Phelps Select MLP and Midstream Energy Fund Inc. (NYSE: DSE), a closed-end fund, today announced it did not achieve the requisite majority vote to approve a proposal to liquidate and dissolve the fund at a meeting of shareholders despite achieving a plurality of votes cast.

The proposal to liquidate and dissolve the fund was recommended to shareholders based on an assessment of a variety of factors, including the volatility in the MLP and midstream energy sector, in which the fund invests, and the fund's level of assets. In addition, the fund had been notified that it is not in compliance with the New York Stock Exchange's continued listing standards because the average closing price of its shares had fallen below $1.00 per share over a consecutive 30-day trading period.

Management will continue to manage the fund according to its mandate and will review options for the fund that are in the best interest of shareholders, including actions necessary to maintain the fund's listing on the NYSE. Management will also voluntarily waive 50% of the management and administration fees that the fund will resume paying, effective August 1. These fees had previously been fully waived since March 1, 2020. It is expected that due to its asset level, the fund will have a higher expense ratio and lesser or no ability to use leverage to increase its asset base.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the fund's investment objective and risks, please see the fund's annual report. A copy of the fund's most recent annual report may be obtained free of charge by contacting Shareholder Services at (866) 270-7788, by email at duff@virtus.com, or by visiting the DSE website.

Forward-Looking Information

This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "estimate," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," or similar statements or variations of such terms. Forward-looking statements are based on a series of expectations, assumptions, and projections; are not guarantees of future results or performance; and may involve risks and uncertainty. All forward-looking statements are as of the date of this release only; the fund undertakes no obligation to update or review any forward-looking statements. The fund can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.

 

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SOURCE Duff & Phelps Select MLP and Midstream Energy Fund Inc.

FAQ

What was the outcome of the Duff & Phelps Select MLP fund’s liquidation proposal on July 24, 2020?

The proposal to liquidate the Duff & Phelps Select MLP and Midstream Energy Fund did not achieve the required majority vote, despite a plurality of votes in favor.

Why is the Duff & Phelps Select MLP fund non-compliant with NYSE listing standards?

The fund is non-compliant because its share price has averaged below $1.00 over a consecutive 30-day period.

What actions will management take for the Duff & Phelps Select MLP fund following the failed liquidation vote?

Management will continue to operate the fund and review options in the best interest of shareholders, including maintaining NYSE listing.

What changes to management fees will occur for the Duff & Phelps Select MLP fund?

Effective August 1, 2020, management will waive 50% of the management and administration fees after waiving all fees since March 2020.