Marathon Petroleum and Phillips 66 outperformed within the Refining & Marketing group, which benefited from strong refined product demand and low inventory levels. In combination, these dynamics sustained refining margins above the market’s expectations, resulting in sector-leading performance. Phillips 66 has started to exhibit better operational execution after previous missteps, which allowed the stock to gain some ground relative to its peers.
In the Integrated Oil & Gas group, our position in Cenovus Energy, which we added to the portfolio during the quarter, was a notable contributor. Cenovus is a Canada-based integrated company that reactivated two key refining assets late in the second quarter. This is expected to drive above average earnings and cash flow growth over the next year, which should allow the stock to close its current valuation gap versus its peers.
Turning to Materials, positive relative contribution was generated by both our industry group weightings and individual stock selection. Chemicals, our largest industry group overweight, was one of the best performing groups in Materials. Our holdings in Lyondell, Celanese, and Dupont de Nemours all performed well relative to the sector. Lyondell benefited from its U.S. manufacturing base, giving it an input cost advantage over its international peers. Both Celanese and Dupont are benefiting from significant restructuring efforts, which should enhance earnings power moving forward. In the Metals & Mining industry group, our holding in Teck Resources was the best performer, as news of the potential sale of a large coal asset helped prop the stock up in an otherwise weak group.
For the nine months ended September 30, 2023, the total return on the Fund’s NAV per share (with dividends and capital gains reinvested) was 6.3%. This compares to a total return of 5.5% for the Fund’s benchmark. The total return on the market price of the Fund’s shares for the period was 7.5%.
For the twelve months ended September 30, 2023, the Fund’s total return on NAV was 29.3%. Comparable return for the Fund’s benchmark was 28.2%. The Fund’s total return on market price for the period was 28.0%.
During the first nine months of this year, the Fund paid distributions to shareholders in the amount of $7.5 million, or $.30 per share, consisting of $.03 net investment income, $.02 short-term capital gain, and $.03 long-term capital gain, realized in 2022, and $.22 of net investment income realized in 2023, all taxable in 2023. These constitute the first three payments toward our annual 6% minimum distribution rate commitment.