Legg Mason Partners Fund Advisor, LLC Announces Distributions for the Month of May 2020
May 13 2020 - 5:11PM
Business Wire
Legg Mason Partners Fund Advisor, LLC announced today that
certain closed end funds have declared their distributions for the
month of May 2020.
The following dates apply to the distribution schedule
below:
Month
Record
Date
Ex-Dividend
Date
Payable
Date
May
5/21/2020
5/20/2020
5/29/2020
The distribution information for all three Funds are as
followed:
Fund
Name
Ticker
Previous
Distribution
Current
Distribution
%
Change
ClearBridge MLP and
Midstream Fund Inc.
CEM
$0.295
$0.095
(68)%
ClearBridge MLP and
Midstream Total Return
Fund Inc.
CTR
$0.220
$0.080
(64)%
ClearBridge Energy
Midstream Opportunity
Fund Inc.
EMO
$0.230
$0.065
(72)%
The distribution rates have been reduced to a level that aligns
with each Fund’s cash flows after portfolio repositioning following
the significant market volatility experienced by Midstream energy
companies during the first quarter of 2020.
During the first quarter of 2020, the Alerian MLP Index
generated a negative total return of -57.2%. This unprecedented
decline in Midstream stock prices forced each Fund to reduce
borrowings to remain in compliance with applicable leverage limits.
Reduced borrowings coupled with some portfolio holdings reducing
their distributions to investors negatively impacted each Fund’s
cash flow.
ClearBridge portfolio manager, Chris Eades, gave his views on
the current market: “The magnitude and swiftness of the downdraft
in Midstream stocks during March 2020 is without comparison. The
energy market became both supply and demand challenged. Global oil
demand has been reduced by roughly 25% due to Covid-19. At the same
time, global oil supply surged as Saudi Arabia started a price war.
The Funds management team believes each Fund’s new distribution
rate is set at an appropriate level to navigate the new global
environment.”
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 2021, after
definitive information is available, the Funds will send
stockholders a Form 1099-DIV, if applicable, specifying how the
distributions paid by the Funds 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).
For more information about the Funds, please call 1-888-777-0102
or consult the Funds’ website at www.lmcef.com. Hard copies of the
Funds’ complete audited financial statements are available free of
charge upon request.
Data and commentary provided in this press release are for
informational purposes only. Legg Mason and its affiliates do not
engage in selling shares of the Funds.
Category: Distribution Related
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Investor Contact: Fund Investor Services
1-888-777-0102
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