ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) Announces Increased Distributions and Changes to Monthly Payments
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) has announced significant changes to its distribution policy. Starting September 2024, EMO will switch from quarterly to monthly distributions. The fund declared a monthly distribution of $0.33 per share for September, October, and November, equivalent to $0.99 per quarter. This represents a 48% increase from the previous quarterly distribution.
The investment manager and Board believe these changes will enhance shareholder total returns and potentially reduce the Fund's discount to its net asset value (NAV). The new distribution schedule includes specific record, ex-dividend, and payable dates for each month. EMO's investment manager, Franklin Templeton Fund Adviser, , is a subsidiary of Franklin Resources, Inc.
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) ha annunciato importanti cambiamenti nella sua politica di distribuzione. A partire da settembre 2024, EMO passerà da distribuzioni trimestrali a mensili. Il fondo ha dichiarato una distribuzione mensile di $0,33 per azione per settembre, ottobre e novembre, equivalente a $0,99 per trimestre. Questo rappresenta un aumento del 48% rispetto alla precedente distribuzione trimestrale.
Il gestore degli investimenti e il Consiglio ritengono che questi cambiamenti miglioreranno i rendimenti totali per gli azionisti e potrebbero ridurre il disconoscimento del fondo rispetto al suo valore netto degli attivi (NAV). Il nuovo programma di distribuzione include date specifiche di registrazione, ex-dividendo e pagamento per ciascun mese. Il gestore degli investimenti di EMO, Franklin Templeton Fund Adviser, è una controllata di Franklin Resources, Inc.
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) ha anunciado cambios significativos en su política de distribución. A partir de septiembre de 2024, EMO cambiará de distribuciones trimestrales a mensuales. El fondo declaró una distribución mensual de $0.33 por acción para septiembre, octubre y noviembre, equivalente a $0.99 por trimestre. Esto representa un aumento del 48% respecto a la distribución trimestral anterior.
El gerente de inversiones y la Junta creen que estos cambios mejorarán los rendimientos totales para los accionistas y potencialmente reducirán el descuento del fondo respecto a su valor neto de activos (NAV). El nuevo calendario de distribución incluye fechas específicas de registro, ex-dividendo y pago para cada mes. El gerente de inversiones de EMO, Franklin Templeton Fund Adviser, es una subsidiaria de Franklin Resources, Inc.
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO)는 배당 정책에 중요한 변화를 발표했습니다. 2024년 9월부터 EMO는 분기 배당에서 월간 배당으로 전환합니다. 이 펀드는 9월, 10월 및 11월에 대해 주당 $0.33의 월 배당금을 발표했습니다, 이는 분기당 $0.99에 해당합니다. 이는 이전 분기 배당금보다 48% 증가한 수치입니다.
투자 관리자와 이사회는 이러한 변화가 주주 총수익을 향상시키고 펀드의 순자산가치(NAV) 할인률을 줄이는 데 기여할 것이라고 믿습니다. 새로운 배당 일정은 각 월에 대한 특정 기록일, 제외 배당일 및 지급일을 포함합니다. EMO의 투자 관리자 Franklin Templeton Fund Adviser는 Franklin Resources, Inc.의 자회사입니다.
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) a annoncé d'importants changements dans sa politique de distribution. À partir de septembre 2024, EMO passera de distributions trimestrielles à mensuelles. Le fonds a déclaré une distribution mensuelle de 0,33 USD par action pour septembre, octobre et novembre, ce qui équivaut à 0,99 USD par trimestre. Cela représente une augmentation de 48% par rapport à la précédente distribution trimestrielle.
Le gestionnaire d'investissement et le conseil d'administration estiment que ces changements amélioreront le rendement total des actionnaires et pourraient potentiellement réduire la décote du fonds par rapport à sa valeur nette d'inventaire (NAV). Le nouveau calendrier de distribution inclut des dates spécifiques d'enregistrement, de détachement de dividende et de paiement pour chaque mois. Le gestionnaire d'investissement d'EMO, Franklin Templeton Fund Adviser, est une filiale de Franklin Resources, Inc.
ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) hat bedeutende Änderungen seiner Verteilungspolitik bekannt gegeben. Ab September 2024 wird EMO von vierteljährlichen auf monatliche Ausschüttungen umsteigen. Der Fonds hat eine monatliche Ausschüttung von 0,33 USD pro Aktie für September, Oktober und November erklärt, was 0,99 USD pro Quartal entspricht. Dies stellt einen 48%igen Anstieg im Vergleich zur vorherigen vierteljährlichen Ausschüttung dar.
Der Investmentmanager und der Vorstand sind der Meinung, dass diese Änderungen die Gesamtrendite der Aktionäre verbessern und möglicherweise den Rabatt des Fonds auf seinen Nettoinventarwert (NAV) verringern werden. Der neue Ausschüttungszeitplan enthält spezifische Record-, Ex-Dividende- und Zahlungstermine für jeden Monat. EMOs Investmentmanager, Franklin Templeton Fund Adviser, ist eine Tochtergesellschaft von Franklin Resources, Inc.
- 48% increase in quarterly distribution equivalent (from $0.67 to $0.99)
- Change to monthly distribution payments, potentially enhancing shareholder returns
- Potential reduction in the Fund's discount to NAV
- None.
Insights
This announcement marks a significant shift in EMO's distribution strategy, with a 48% increase in quarterly equivalent payouts and a move to monthly distributions. The
The decision to increase distributions and shift to monthly payments may be aimed at narrowing the fund's discount to NAV, which is a common challenge for closed-end funds. By providing more frequent and higher payouts, EMO might attract more investors, potentially driving up the share price closer to its NAV. However, investors should be cautious and ensure the new distribution rate is sustainable and not eroding the fund's long-term asset base.
The energy midstream sector has been performing well recently, benefiting from stable cash flows and high commodity prices. EMO's significant distribution increase suggests confidence in the sector's continued strength. This move could position the fund more competitively among income-oriented investments, potentially attracting capital from both equity and fixed-income investors seeking yield.
The transition to monthly distributions aligns with a broader trend in the fund industry to offer more frequent payouts, which can be attractive for investors relying on regular income. However, it's important to monitor the fund's NAV and distribution coverage ratio in the coming months to ensure the new payout level is sustainable. The 48% increase is substantial and warrants careful analysis of the fund's underlying holdings and cash flow generation capabilities.
Additionally, EMO declared a monthly distribution of
The following dates apply to the distribution schedule below:
Month |
Record Date |
Ex-Dividend Date |
Payable Date |
||
September |
9/23/2024 |
9/23/2024 |
10/1/2024 |
||
October |
10/24/2024 |
10/24/2024 |
11/1/2024 |
||
November |
11/21/2024 |
11/21/2024 |
12/2/2024 |
Ticker |
Fund Name |
Month |
Amount |
Change from Previous Distribution |
EMO |
ClearBridge Energy Midstream Opportunity Fund Inc. |
September |
|
|
|
October |
|
||
|
November |
|
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(a) EMO to convert to a monthly paying distribution starting with the September 2024 distribution. The August 2024 quarterly distribution was |
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The distributions may be treated as dividend income, return of capital or a combination thereof for tax purposes. This press release is not for tax reporting purposes. In early 2025, after definitive information is available, the Fund will send stockholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a stockholder’s tax return (e.g., dividend income or return of capital).
The mergers of ClearBridge MLP and Midstream Fund Inc. (NYSE: CEM) and ClearBridge MLP and Midstream Total Return Fund Inc. (NYSE: CTR) with and into ClearBridge Energy Midstream Opportunity Fund Inc. (NYSE: EMO) became effective before markets opened on September 9, 2024.
Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC), EMO’s investment manager, is an indirect, wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”).
For more information about the Funds, 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.
The Fund’s common shares are traded on the New York Stock Exchange. Similar to stocks, Fund share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value, and can increase an investor’s risk of loss. All investments are subject to risk, including the risk of loss.
INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Category: Distribution Related
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20240912231299/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
When will EMO start paying monthly distributions?
What is the new monthly distribution amount for EMO?
How much has EMO's distribution increased compared to the previous quarter?
What are the record dates for EMO's new monthly distributions in 2024?
