DALLAS, Sept. 1,
2023 /PRNewswire/ -- The NXG NextGen
Infrastructure Income Fund (NYSE: NXG) (the "Fund") declared
monthly distributions of $0.54 per
common share for each of September, October and November,
2023. The Fund's monthly distribution for August 2022 was $0.27 per share. These monthly
distributions will be payable to common shareholders pursuant to
the table below:
Record
Date
|
Ex-Dividend
Date
|
Payment
Date
|
Distribution
Amount
|
September 18,
2023
|
September 15,
2023
|
September 29,
2023
|
$0.54
|
October 16,
2023
|
October 13,
2023
|
October 31,
2023
|
$0.54
|
November 15,
2023
|
November 14,
2023
|
November 30,
2023
|
$0.54
|
Additional information regarding these distributions is set
forth below:
August 2022
Distribution
Amount
|
Declared
Distribution
Amount
|
Percentage
Change
|
Annualized
Distribution Rate (as a percentage of)
|
NAV*
|
Market
Price*
|
$0.27
|
$0.54
|
100 %
|
14.20 %
|
18.00 %
|
|
|
*
|
Declared distribution
for September, October and November 2023, annualized, as a
percentage of net asset value ("NAV") per share or market price, as
applicable, in each case as of August 31,
2023.
|
The Fund highlights that this is an increased distribution rate
compared to what it has distributed previously. The Fund's
September, October and November 2023
distributions, annualized, reflect a distribution rate of
approximately 14.20% of the Fund's NAV as of August 31, 2023. The Fund's management and
Board of Trustees have been monitoring its trading dynamics and
further, believe investors prefer higher and consistent
distributions.
Saket Kumar, the Fund's portfolio
manager, in supporting the distribution increase said:
We believe that we are at a unique inflection
point in global energy transition. Traditional energy
infrastructure companies have pivoted to a sustained free cash flow
generation that should help us generate growing stream of cash
flows for the strategy. At the same time, we believe that favorable
economics and global policy support in the clean energy
infrastructure sector should drive adoption of renewable energy
globally which should be a source of secular growth for the
strategy. We believe that the Fund's balanced approach towards both
secular growth and sustainable income should provide investors with
an attractive total return potential.
The Fund's Board of Trustees considered various alternatives and
believes that the Fund's increased distribution rate benefits
shareholders by providing them with liquidity and flexibility in
managing their investment in the Fund. Shareholders have the option
of reinvesting distributions in additional shares of the Fund or
receiving them in cash. Shareholders may consider reinvesting their
distributions through the Fund's dividend reinvestment plan which
may at times provide additional benefit to shareholders.
The Fund's net investment income can vary significantly over
time; however, the Fund seeks to maintain a more stable monthly
distribution per share. The distributions paid by the Fund
for any particular month may be more or less than the amount of net
investment income for that monthly period. The Fund may
distribute more than the entire amount of the net investment income
earned in a particular period, in which case all or a portion of a
distribution may be a return of capital. Return of capital is
the return of a portion of the shareholder's original investment.
In any given year, there can be no guarantee the Fund's investment
returns will exceed the amount of distributions. To the extent the
amount of distributions paid to shareholders in cash exceeds the
total net investment returns of the Fund, the assets of the Fund
will decline, which may have the effect of increasing the Fund's
expense ratio. In addition, in order to make such distributions,
the Fund may have to sell a portion of its investment portfolio at
a time when independent investment judgment might not dictate such
action. Shareholders should not assume that the source of a
distribution from the Fund is net income or profit. Alternatively,
the Fund may also distribute less than its net investment income in
a particular period. The undistributed net investment income
may be available to supplement future common share distributions.
Undistributed net investment income is included in the Common
Shares' net asset value, and, correspondingly, distributions from
net investment income will reduce the Common Shares' net asset
value.
With each distribution that does not consist solely of net
investment income, the Fund will issue a notice to shareholders
that will provide estimated information regarding the amount and
composition of the distribution. The final determination of such
amounts will be made and reported to shareholders in early 2024,
after the end of the calendar year when the Fund determines its
earnings and profits for the year. It is currently
anticipated, but not certain, that approximately 100% of the Fund's
distributions will be treated as a return of capital. A return of
capital distribution does not necessarily reflect the Fund's
investment performance and should not be confused with "yield" or
"income." Therefore, investors should not draw any
conclusions about the Fund's investment performance from the amount
of any distribution. The amounts and sources of distributions
reported in each notice will be estimated, are likely to change
over time and are not provided for tax reporting purposes. The
actual amounts and sources of the amounts for accounting and tax
reporting purposes will depend upon the Fund's investment
experience during its full fiscal year and may be subject to
changes based on tax regulations. The Fund will send each
shareholder a Form 1099-DIV for the calendar year that will tell
shareholders how to report distributions for federal income tax
purposes.
The distribution shall be paid on the payment date unless the
payment of such distribution is deferred by the Fund's Board of
Trustees upon a determination that such deferral is required in
order to comply with applicable law or to ensure that the Fund
remains solvent and able to pay its debts as they become due and
continue as a going concern.
ADDITIONAL INFORMATION ABOUT THE FUND
The Fund is a closed-end management investment company with an
investment objective of seeking a high total return with an
emphasis on current income. The Fund seeks to achieve its
investment objective by investing, under normal market conditions,
at least 80% of its net assets, plus any borrowings for investment
purposes, in a portfolio of equity and debt securities of
infrastructure companies, including: (i) energy infrastructure
companies, (ii) industrial infrastructure companies, (iii)
sustainable infrastructure companies, and (iv) technology and
communication infrastructure companies. The Fund will invest no
more than 25% of its Managed Assets in securities of energy master
limited partnerships ("MLPs") that qualify as publicly traded
partnerships under the Internal Revenue Code. The Fund's shares are
traded on the New York Stock Exchange under the symbol "NXG." There
can be no assurance that the Fund will achieve its investment
objectives. Investments in the Fund involve operating expenses and
fees. The net asset value of the Fund will fluctuate with the value
of the underlying securities. It is important to note that
closed-end funds trade on their market value, not net asset value,
and closed-end funds often trade at a discount to their net asset
value. Future distributions will be made by the Fund if and
when declared by the Fund's Board of Trustees, based on a
consideration of number of factors, including the Fund's continued
compliance with terms and financial covenants of its leverage
financing facility, the Fund's net investment income, financial
performance, and available cash. There can be no assurance that the
amount or timing of distributions in the future will be equal or
similar to that described herein or that the Board of Trustees will
not decide to suspend or discontinue the payment of distributions
in the future.
ABOUT NXG Investment Management
Cushing® Asset Management, LP ("Cushing") is an SEC-registered investment
adviser headquartered in Dallas,
Texas. Cushing serves as
investment adviser to affiliated funds and managed accounts.
Cushing is doing business as NXG
Investment Management providing Next Generation investment
strategies to investors seeking long-term growth in companies
focused on a clean and sustainable future as well as traditional
and transformational infrastructure companies.
Contact:
Blake
Nelson
NXG Investment Management
214-692-6334
www.nxgim.com
www.cushingcef.com
IMPORTANT INFORMATION
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although the Fund and Cushing
believe that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the company's reports that
are filed with the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required by law, the Fund and Cushing do not assume a duty to update this
forward-looking statement.
View original
content:https://www.prnewswire.com/news-releases/nxg-nexgen-infrastructure-income-fund-nyse-nxg-increases-monthly-distribution-100-301915570.html
SOURCE NXG Investment Management