DALLAS, Feb. 1, 2023
/PRNewswire/ -- NXG NextGen Infrastructure Fund (NYSE:
NXG) (the "Fund") declared monthly distributions of
$0.27 per common share for each of
February, March, April, and May 2023. The Fund's monthly
distribution for January 2023 was
$0.2132 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
|
February 15,
2023
|
February 14,
2023
|
February 28,
2023
|
$0.27
|
March 15,
2023
|
March 14,
2023
|
March 31,
2023
|
$0.27
|
April 18,
2023
|
April 17,
2023
|
April 28,
2023
|
$0.27
|
May 15, 2023
|
May 12, 2023
|
May 31, 2023
|
$0.27
|
Additional information regarding these distributions is set
forth below:
January 2023
Distribution
Amount
|
Declared
Distribution
Amount
|
Percentage
Change
|
Annualized
Distribution Rate (as a percentage of)
|
NAV*
|
Market
Price*
|
$0.2132
|
$0.27
|
26.64 %
|
6.07 %
|
7.87 %
|
* Declared distribution for February,
March, April, and May 2023,
annualized, as a percentage of net asset value ("NAV") per share or
market price, as applicable, in each case as of January 31, 2023.
The Fund highlights that this is an increased distribution rate
compared to what it has distributed previously. The Fund's
February, March, April, and May 2023
distributions, annualized, reflect a distribution rate of
approximately 6.07% of the Fund's NAV as of January 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 the Fund presents an attractive investment
opportunity with a blend of secular growth from its renewable
energy infrastructure allocation and favorable cash generation from
its traditional energy infrastructure allocation. We expect
renewable infrastructure companies will benefit from growing
adoption and cost advantages, as well as tax incentives like the
Inflation Reduction Act and REPowerEU plan. The long-term cost
deflation in renewable power will continue to increase the sector's
leading economics, helping it grow relative to fossil-fuel power
generation. Traditional energy companies are also expected to
increasingly play a critical role during the transition in global
energy. Energy infrastructure offers a compelling investment
opportunity given the convergence of a robust macro energy
environment and a reformed focus on positive free cash flows and
shareholder returns.
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 88% of the Fund's
distributions will be treated as a return of capital. Accordingly,
the Fund's distributions should not be used as a measure of
performance or confused with yield or income. 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.
TRUSTEE RESIGNATION AND TRUSTEE APPOINTMENT
The Fund also announced today that Jerry V. Swank, Chair of the Board of Trustees
of the Fund (the "Board"), has resigned his role as a trustee of
the Fund, effective immediately. The Board has appointed
John H. Alban to serve as an
interested trustee of the Fund to fill the vacancy created upon the
resignation of Mr. Swank. Mr. Alban will serve the remainder of Mr.
Swank's term as a Class II trustee of the Fund. The term of the
Class II trustees of NXG NextGen Infrastructure Income Fund
continues until the annual meeting of shareholders to be held in
2024.
Mr. Alban previously served as Chief Executive Officer and Chief
Operating Officer of Cushing Asset Management, LP, the Fund's
investment adviser, and as Chief Executive Officer and President of
the Fund and other funds in the Cushing Fund Complex, until his
retirement in November 2022.
Brian R. Bruce, Chair of the
Board of Trustees of the Fund, said, "On behalf of the Board of
Trustees, we sincerely thank Jerry
Swank for his leadership and service to the Fund in many
capacities since its inception, including as a Trustee, and
previously as chief executive officer and portfolio manager.
In addition, we welcome John Alban
back to the Fund and look forward to the service he can provide in
the capacity of a Trustee."
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 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
Cushing® Asset Management, LP
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.
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SOURCE Cushing® Asset Management, LP