Salient

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Salient MLP & Energy Infrastructure Fund (the "Fund") is a non-diversified, closed-end management investment company whose investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions ("Distributions") to shareholders. There can be no assurance that the Fund will achieve its investment objective. The Fund seeks to provide shareholders with a tax-efficient vehicle to invest in a portfolio of energy infrastructure companies that own midstream and other energy assets. The Fund's common stock is traded on the New York Stock Exchange under the symbol "SMF".
INVESTMENT OBJECTIVE
  • The Fund’s investment objective is to provide a high level of total return with an emphasis on making quarterly distributions to shareholders.
INVESTMENT STRATEGY
  • The Fund seeks to achieve its investment objective by investing at least 80% of its total assets in securities of MLPs and other energy companies.
INVESTMENT POLICIES
  • At least 80% of total assets in securities of MLPs and other Energy Infrastructure Companies
  • At least 50% of total assets in Midstream MLPs and Midstream Energy Infrastructure Companies
  • Up to 50% of total assets in restricted or unregistered securities
  • Up to 10% of total assets in privately held company investments
  • No more than 25% of total assets in debt securities of Energy Infrastructure Companies
  • No more than 10% of total assets in any single issuer other than subsidiaries of the Fund
HEDGING & RISK MANAGEMENT
  • We may use various hedging and other risk management strategies to seek to manage various risks including market, credit and tail risks.
LEVERAGE
  • Leverage targeted at 25% of total assets.
QUARTERLY DISTRIBUTIONS
  • The Fund intends to pay its common shareholders quarterly cash distributions. The Fund expects that it will declare a distribution approximately 45-60 days and pay a distribution no later than 90 days from the completion of the offering (May 25, 2011). The Fund anticipates fully investing the proceeds from the offering in approximately 3 to 6 months.
DISTRIBUTION REINVESTMENT
  • Unless investors or their advisors request otherwise, all quarterly distributions will be used to buy additional shares of the Fund. Systematic investing does not ensure profit, nor does it protect against loss in a declining market.
MANAGEMENT FEE
  • Base management fee of 1.00% of managed assets after 0.20% fee reduction in first two years. Payable monthly.
INVESTOR TAX REPORTING
  • A 1099. Reporting appropriate for retirement accounts.

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.

NAV1
Share Price2
Premium/Discount3
 4/11/14 $31.25 $30.86 -1.25%
 4/4/14 $31.52 $29.97 -4.92%
 3/31/14 $30.67 $29.74 -3.03%
 3/28/14 $30.50 $29.37 -3.70%
 3/21/14 $30.45 $28.81 -5.39%
 3/14/14 $30.30 $28.88 -4.69%
 3/7/14 $30.31 $29.90 -1.35%
 2/28/14 $30.23 $29.80 -1.42%
 2/21/14 $30.36 $29.48 -2.90%
 2/14/14 $30.80 $28.91 -6.14%
 2/7/14 $30.64 $28.85 -5.84%
 1/31/14 $30.39 $28.48 -6.28%
 1/24/14 $29.90 $28.43 -4.92%
 1/17/14 $29.71 $27.91 -6.06%
 1/10/14 $29.43 $27.22 -7.51%
 1/3/14 $29.34 $27.41 -6.58%
Expand Performance Archive

1 NAV is the net asset value of the Fund on the date as referenced above and equals the value of all the Fund's assets (less liabilities) divided by the number of shares outstanding.

2 Share Price is the price that the Fund closed at on the New York Stock Exchange on the date as referenced above.

3 Premium/Discount is the percentage difference between the net asset value of the Fund and the share price.  The premium/discount is based on last computed net asset value as referenced above.  Shares of closed-end Funds frequently trade at a discount to their net asset value in the secondary market and the net asset value of the closed-end Fund shares may decrease.  


Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.

Ex-Date
Record Date
Payable Date
$0.467 02/12/2014 02/17/2014 02/28/2014
$0.466 11/15/2013 11/19/2013 11/29/2013
$0.465 08/15/2013 08/19/2013 08/29/2013
$0.46 05/17/2013 05/21/2013 05/29/2013
$0.455 02/15/2013 02/19/2013 02/28/2013
$0.447 11/15/2012 11/19/2012 12/03/2012
$0.44 08/15/2012 08/17/2012 08/22/2012
$0.43 05/15/2012 05/17/2012 05/22/2012
$0.42 02/15/2012 02/17/2012 02/22/2012
$0.41 11/15/2011 11/17/2011 11/22/2011
$0.40 08/17/2011 08/19/2011 08/25/2011

The Fund distributions are comprised of distributable cash flow generated from its portfolio investments plus any realized capital gains.   The estimated tax character of the distributions is summarized below. 




  • Q4 2013 distribution: 44% return of capital | 56% ordinary income
  • Q3 2013 distribution: 35% return of capital | 65% ordinary income
  • Q2 2013 distribution: 100% return of capital
  • Q1 2013 distribution: 100% return of capital
  • 2012 distributions: 100% return of capital
  • 2011 distributions: 78% return of capital | 22% net investment income

Investors in the Fund receive an annual 1099-DIV tax form, which provides the character of the distributions paid each year. These statements are provided annually in early February to the investors through their respective brokerage firms. Effective January 1, 2011, issuers of corporate securities are required to complete Internal Revenue Service Form 8937 to report organizational actions, including nontaxable distributions, that affect the basis of the securities involved in the organizational action. The information contained below is intended to satisfy the requirements of public reporting under section 1.6045B-1(a)(3) and (b)(4) of the Treasury Regulations. Note that the signed version of the completed forms have been submitted to the Internal Revenue Service.

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.

Gregory A. Reid
Gregory A. ReidManaging Director
Ted Gardner
Ted Gardner, CFA
Portfolio Manager
John A Blaisdell
John A. Blaisdell
Chief Executive Officer & Managing Director
Lee Partridge, CFA
Lee Partridge, CFA
Chief Investment Officer & Managing Director
Jeremy L. Radcliffe
Jeremy L. Radcliffe
Chief Operating Officer & Managing Director
John E. Price
John E. Price
Chief Financial Officer & Managing Director
Paul Bachtold
Paul Bachtold
Chief Compliance Officer

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.

Investors should carefully read the Fund’s preliminary prospectus, which includes a discussion of investment objectives, risk factors, fees and expenses, before investing.

Closed-end funds frequently trade at a discount from their net asset value. The risk of loss due to this discount may be greater for initial investors expecting to sell their shares in a relatively short period after completion of the offering. An investment in the Fund is not appropriate for all investors and is not designed to be a complete investment program. The Fund is designed to be a long-term investment and not as a trading vehicle.

As the resources of the underlying MLPs deplete, production and cash flows steadily decline, which may decrease distribution rates to the fund.

As applicable, MLP Funds with international holdings are subject to currency fluctuation risk, differences in accounting principles, and country specific risks.

Given the energy sector focus of many MLPs, a sustained decline in the demand for energy products could adversely affect MLP revenues and cash flows.

The Fund is a newly organized, non-diversified, closed-end management investment company and has no operating or public trading history. Being a newly organized company, the Fund is subject to all of the business risks and uncertainties associated with any new business, including the risk that the Fund will not achieve its investment objective and that the value of an investment could decline substantially.

An investment in the Fund’s common shares is subject to investment risk, including the possible loss of the entire amount that you invest. An investment in our common shares is not intended to constitute a complete investment program and should not be viewed as such. The value of the securities in which we invest, like other market investments, may move up or down, sometimes rapidly and unpredictably. Your investment in our common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of our Distributions.

Shares of closed-end management investment companies frequently trade at prices lower than their net asset value.

Any increase in the number of our outstanding common shares in a future offering will cause dilution for existing shareholders, may put downward pressure on the market price of our common shares, will cause the voting power of shareholders to be diluted and may cause our per share distribution to decrease.

Risk is increased to the extent we invest in securities of a small number of issuers. Credit, market and other risks may be more pronounced for us than for a fund that is more diversified.

Certain risks inherent in investing in Energy Companies include changes in the supply and demand for natural resources, depletion of reserves, changes in governmental regulations, changes in commodity prices, inability to consummate acquisitions or realize the benefits therefrom, dependency on affiliates, the occurrence of significant natural or man-made catastrophes, terrorist activities, government instability and the occurrence of extreme weather conditions.

Although we intend to invest the proceeds of this offering in accordance with our investment objective within three to six months after the closing of this offering, such investments may be delayed if suitable investments are unavailable at the time, if we are unable to secure firm commitments for direct investments, if market conditions and trading volumes of the securities of Midstream/Energy Companies in which we intend to invest are not favorable at the time, or for other reasons.

A substantial portion of the cash flow received by us is derived from our investment in equity securities of Energy Companies. The amount of cash that any such company has available to pay its equity holders in the form of distributions/dividends depends on the amount of cash flowgenerated from such company’s operations.

The yields for equity securities of MLPs and certain Midstream Companies are susceptible in the short-term to fluctuations in interest rates, and the prices of such equity securities may decline when interest rates rise. Rising interest rates could adversely impact the financial performance of energy companies by increasing their cost of capital.

Global financial markets and economic conditions have been, and continue to be, volatile due to a variety of factors. As a result, the cost of raising capital in the debt and equity capital markets has increased while the ability to raise capital from those markets has diminished. If funding is not available when needed, or is available only on unfavorable terms, Energy Companies may not be able to meet their obligations as they come due. Moreover, without adequate funding, Energy Companies may be unable to execute their growth strategies, complete future acquisitions, take advantage of other business opportunities or respond to competitive pressures, any of which could have a material adverse effect on their revenues and results of operations.

Our ability to meet our investment objective will depend, in part, on the level of taxable income and distributions we receive from the equity securities in which we invest, a factor over which we have no control. If a MLP were treated as a corporation for federal income tax purposes, such MLP would be obligated to pay federal income tax on its income at the corporate tax rate and the amount of cash available for distribution by the MLP would be reduced and distributions received by us would be taxed under federal income tax laws applicable to corporate dividends (as dividend income, return of capital, or capital gain).

Equity securities for Energy Companies may be subject to general movements in the stock market, and a significant drop in the stock market may depress the price of securities to which we have exposure

Debt securities in which we invest are subject to many of the risks described elsewhere in this section. In addition, they are subject to credit risk, and, depending on their quality, other special risks.

Securities purchased in IPOs are often subject to the general risks associated with investments in companies with small market capitalizations, and typically to a heightened degree. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in an IPO may be highly volatile.

Privately held companies are not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls over financial reporting. As a result, our Adviser may not have timely or accurate information about the business, financial condition and results of operations of the privately held companies in which the Fund invests. In addition, the securities of privately held companies are generally illiquid, and entail the risks described under—”Liquidity Risk” below.

Securities with limited trading volumes may display volatile or erratic price movements. Therefore, it may be more difficult for us to buy and sell significant amounts of such securities without an unfavorable impact on prevailing market prices.

Interest rate transactions that we may use for hedging purposes will expose us to certain risks that differ from the risks associated with our portfolio holdings. Our success in using hedging instruments is subject to our Adviser’s ability to predict correctly changes in the relationships of such hedging instruments to our interest rate risk, and there can be no assurance that our Adviser’s judgment in this respect will be accurate.

The focus of our portfolio on a specific industry or industries within the Midstream/Energy Sector may present more risks than if our portfolio were broadly diversified over numerous sectors of the economy.

Inflation risk is the risk that the value of assets or income from investment will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the common shares and distributions can decline.

Our annual portfolio turnover rate may vary greatly from year to year. A higher portfolio turnover rate results in correspondingly greater brokerage commissions and other transactional expenses that are borne by us.

The use of derivatives has risks, including the imperfect correlation between the value of such instruments and the underlying assets, the possible default of the other party to the transaction or illiquidity of the derivative investments. Furthermore, the ability to successfully use these techniques depends on our ability to predict pertinent market movements, which cannot be assured. Thus, the use of derivatives may result in losses greater than if they had not been used, may require us to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation we can realize on an investment or may cause us to hold a security that we might otherwise sell. In addition, amounts paid by us as premiums and cash or other assets held in margin accounts with respect to derivative transactions are not otherwise available to us for investment purposes.

A short sale creates the risk of an unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost of buying those securities to cover the short position. There can be no assurance that the securities necessary to cover a short position will be available for purchase.

Under normal market conditions, our policy is to utilize leverage instruments in an amount that represents approximately 25% of our total assets, including proceeds from such leverage instruments. However, based on market conditions at the time, we may use leverage instruments in amounts that represent greater than 25% leverage to the extent permitted by the Investment Company Act of 1940, as amended. Leverage instruments have seniority in liquidation and distribution rights over our common shares. The issuance of leverage instruments represents the leveraging of our common shares.

Leverage is a technique that could adversely affect our common shareholders. Unless the income and capital appreciation, if any, on securities acquired with the proceeds from leverage instruments exceed the costs of such leverage instruments, the use of leverage could cause our net asset value to decline. When leverage is used, the net asset value and market value of our common shares will be more volatile. There is no assurance that our use of leverage will be successful.

Our portfolio is subject to management risk because it is actively managed. Our Adviser applies investment techniques and risk analyses in making investment decisions for us, but there can be no guarantee that they will produce the desired results. We depend upon Salient’s key personnel for our future success and upon their access to certain individuals and investments in the Midstream/Energy Sector. The departure of any of our portfolio managers or the senior management of Salient could have a material adverse effect on our ability to achieve our investment objective. In addition, we can offer no assurance that SCA will remain our investment adviser or that we will continue to have access to Salient’s industry contacts and deal flow.

Conflicts of interest may arise because Salient and its affiliates generally carry on substantial investment activities for other clients in which we will have no interest. Salient or its affiliates may have financial incentives to favor certain of such accounts over us. Any of their proprietary accounts and other customer accounts may compete with us for specific trades.

From time to time, we may “control” or may be an “affiliate” of one or more of our portfolio companies which, depending on SEC interpretations, may result in restrictions being imposed on the size of positions that may be taken for us or on the type of investments that we could make.

There are a limited number of other companies, including other publicly traded investment companies and private funds, which may serve as alternatives to us for investment in a portfolio of companies in the Midstream/Energy Sector.

Market prices may not be readily available for any restricted or unregistered investments in public companies or investments in private companies made by the Fund. Due to the difficulty in valuing these securities and the absence of an active trading market for these investments, we may not be able to realize these securities’ true value or may have to delay their sale in order to do so.

Provisions of our Declaration of Trust and Bylaws could have the effect of discouraging, delaying, deferring or preventing a transaction or a change in control that might otherwise be in the best interests of our shareholders. As a result, these provisions may deprive our common shareholders of opportunities to sell their common shares at a premium over the then current market price of our common shares.

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.

 

 

Investment Advisory Services for the Salient MLP & Energy Infrastructure Fund are offered through Salient Capital Advisors, LLC, a subsidiary of Salient Partners, L.P. The information contained herein does not constitute an offering of any security, product, service or fund.