Net Asset Value and Third Quarter Dividend
HOUSTON, Aug. 6, 2013 /PRNewswire/ -- Salient Midstream & MLP Fund (the "Fund") (NYSE: SMM) announced today its net asset value (NAV) as of July 31, 2013. The Fund also announced that it had increased its dividend for the fourth consecutive quarter by 1.5% sequentially for the third quarter ended August 31, 2013.
At the close of business on July 31, 2013, the Fund's net assets were $225.9 million and the NAV per share was $23.78, compared with April 30, 2013, when the net assets were $226.5 million and the NAV per share was $23.87.
On July 31, 2013, the closing share price of the Fund was $23.81, which was trading at a 0.1% premium to the NAV.
The Fund increased its quarterly dividend to $0.345 per share for the quarter ending August 31, 2013, which represents a 6.2% year-over-year increase over the $0.325 paid in August 2012. The increased dividend will be payable on August 29, 2013 to common stockholders of record on August 19, 2013. It is anticipated that the majority portion of this dividend will be treated as a return of capital for tax purposes. The final tax status of the dividend may differ substantially from this preliminary information, and the final determination of such amount will be made in early 2014 when the Fund can determine its earnings and profits for the 2013 fiscal year.
The Fund's quarterly distributions per share for the past year as of July 31, 2013 are listed below:
QUARTERLY GROWTH RATE (%)
August 29, 2013
August 15, 2013
August 19, 2013
May 29, 2013
May 17, 2013
May 21, 2013
February 28, 2013
February 15, 2013
February 19, 2013
December 3, 2012
November 15, 2012
November 19, 2012
August 22, 2012
August 15, 2012
August 17, 2012
Past performance is no guarantee of future results.
The tax characteristics of the distributions are as follows: 63% estimate return of capital for Q2 2013, 100% estimate return of capital for Q1 2013 and 100% return of capital for 2012.
The Fund was invested in long-term investments as shown in the pie chart below as of July 31, 2013.
Also as of July 31, 2013, the Fund's 10 largest consolidated holdings were:
Consolidated Gross Assets
Enterprise Products Partners, LP*
Plains All American Pipeline, LP*
Enbridge Energy Management, LLC
Kinder Morgan Management, LLC
Williams Companies, Inc.
Kinder Morgan, Inc.
Linn Co, LLC
Energy Transfer Equity, LP*
Golar LNG Partners, LP
Targa Resources Partners, LP
*Held indirectly through the wholly owned C-Corporation, Salient Midstream & MLP Fund, Inc.
The Fund's consolidated unaudited balance sheet as of July 31, 2013, is shown below:
Salient Midstream & MLP Fund
Consolidated Balance Sheet
July 31, 2013
Cash and Cash Equivalents
Receivable for Investments Sold
Hedging and Other Assets
Line of Credit Payable2
Derivatives – Short positions
The Fund had 9.5 million common shares outstanding as of July 31, 2013.
1Investments include the gross underlying investments within the Salient Midstream & MLP Fund, Inc.'s (C-Corporation) of $91.9 million.
2The line of credit payable includes the C-Corporation's $31M outstanding line as of July 31, 2013.
Response to Recently Issued IRS Proposal
On August 2, 2013, the Internal Revenue Service ("IRS") issued proposed regulations which, if ultimately adopted in their current form, would require the Fund to aggregate investment holdings of its Subsidiary with its direct investment holdings for purposes of determining whether more than 25% of its total assets are invested in the securities of one or more "qualified publicly traded partnerships." Such "QPTPs" includes master limited partnerships ("MLPs"), in which the Fund and Subsidiary invest. The proposed regulations would not impact Fund investment in affiliates of MLPs or other Midstream Companies structured as corporations. If the proposed regulations are adopted and finalized in their current form, the Fund would reduce its overall investment in MLPs, whether held in the Fund directly or held by the Subsidiary, to no more than 25% of the Fund's total assets. The Fund would otherwise continue to pursue its investment objective and strategies.
The proposal has no immediate impact on the current operations of the Fund, and will not affect the ability of the Fund to qualify as a RIC for tax purposes in the current year. The IRS has requested comments on the proposal, with the comment period ending October 31, 2013. A public hearing is scheduled for December 9, 2013. If ultimately adopted, the proposed regulations would, unless altered, apply to quarters that begin at least 90 days after the date of publication of any final regulations.
The Adviser is evaluating possible investment alternatives in the event the proposed regulations are finalized. Elimination or reduction of the Subsidiary's investments in MLPs, and/or use of any alternatives, could negatively affect the Fund's investment returns.
Past performance is no guarantee of future results.
Salient Midstream & MLP Fund is a Delaware statutory trust registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund's investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its common shareholders. The Fund seeks to achieve that objective by investing at least 80% of its total assets in securities of MLPs and midstream companies. There can be no assurance that the Fund will achieve its investment objective.
This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund's present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund's filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objective will be attained.
Salient Capital Advisors, LLC
 The amount of distributions may vary depending on a number of factors. As portfolio and market conditions change, the rate of distributions on Fund common shares could change. A portion of the Fund's returns may be comprised of ordinary income, return of capital and net realized capital gains. The Fund will determine the tax characteristics of all fund distributions after the end of the calendar year and will provide shareholders such information at that time.
SOURCE Salient Midstream & MLP Fund
|Salient Midstream & MLP Fund Announces Net Asset Value as of October 31, 2013 and Fourth Quarter 2013 Dividend of $0.347 per Share (2013/11/7)|
|Salient MLP & Energy Infrastructure Fund Announces Net Asset Value as of July 31, 2013 and Third Quarter 2013 Dividend of $0.465 per Share and Responds to a Recently Issued IRS Proposal (2013/8/6)|
|Salient MLP & Energy Infrastructure Fund Announces Net Asset Value as of October 31, 2013 and Fourth Quarter 2013 Dividend of $0.466 per Share (2013/11/7)|
|Old Republic Declares Regular Third Quarter Cash Dividend Of 18 Cents Per Share ()|
|Global Diversified Investment Grade Income Trust II Net Asset Value as at August 31, 2013 ()|
|MFA Financial, Inc. Announces Third Quarter 2013 Preferred Dividend of $0.46875 Per Share ()|
|Net Asset Value as at August 31, 2013 ()|
|Global Diversified Investment Grade Income Trust II - Net Asset Value as at October 31, 2013 (2013/11/5)|
|Net Asset Value as at October 31, 2013 (2013/11/5)|
|Ares Commercial Real Estate Corporation Declares Third Quarter 2013 Dividend of $0.25 Per Common Share and Reports Second Quarter 2013 Financial Results (2013/8/7)|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.