- Provides a portfolio of energy midstream entities including entities structured as both partnerships and corporations
- Seeks a high level of total return with an emphasis on cash distributions
- Targets MLPs with long-lived assets, predictable cash flows and relatively low direct commodity exposure
This Fund completed a1-for-5 reverse stock split on July 28, 2020 for common stockholders of record as of the close of business on July 27, 2020. As a result of the reverse stock split, every five outstanding shares of common stock were automatically converted into one share of common stock.
Meet Your Managers
With a legacy dating back over 50 years, ClearBridge Investments is a leading global equity manager committed to delivering differentiated long-term results through authentic active management.
Meet Your Managers
Michael Clarfeld, CFA (industry since 2000), Chris Eades (industry since 1992) and Peter Vanderlee, CFA (industry since 1999) co-manage your Fund.
ClearBridge offers institutional and individual investors a variety of traditional and alternative equity strategies. With an investment heritage dating back over 50 years, ClearBridge offers distinctive manager insights and proprietary fundamental research.
Michael Clarfeld, CFA
Managing Director, Portfolio Manager
Managing Director, Portfolio Manager
Peter Vanderlee, CFA
Managing Director, Portfolio Manager
Prior to November 16, 2018, this fund was known as ClearBridge Energy MLP Opportunity Fund Inc. At that time, the investment strategy also changed.
What I Should Know
All investments are subject to risks, including the possible loss of principal. The Fund’s concentration of investments in energy related MLPs subject it to the risks of MLPs and the energy sector, including the risks of declines in energy and commodity prices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may invest in small capitalization or illiquid securities which can increase the risk and volatility of the Fund.
MLP cash distributions are generally tax deferred. Non-cash expenses, such as depreciation or depletion, usually offset income derived from an MLP’s operations. To the extent that these expenses exceed income, cash distributions are considered return of capital under tax law. As such, they are not taxed when received. Instead, the distribution, in the form of return of capital, reduces a unit holder’s cost basis. This adjusted cost basis, in turn, results in a higher capital gain or lower capital loss when the units are sold. Of course, there can be no assurances that distributions from an MLP will be tax deferred. The Fund will be treated as a regular corporation for U.S. federal income tax purposes and, as a result, unlike most investment companies, is subject to corporate income tax to the extent the Fund recognizes taxable income. Any taxes paid by the Fund will reduce the amount available to pay distributions to investors, and therefore investors in the Fund will likely receive lower distributions than if they invested directly in MLPs.
Distributions are not guaranteed and are subject to change.
IMPORTANT PERFORMANCE INFORMATION: Performance shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate so shares, when sold, may be worth more or less than the original cost. Returns based on Market Price or NAV, and assume the reinvestment of all distributions at the Dividend Reinvestment Plan Price or NAV, respectively. All returns include the deduction of management fees, operating expenses and all other fund expenses, and do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Returns for periods of less than one year are not annualized.
Net Asset Value (NAV) is total assets less total liabilities divided by the number of shares outstanding.
Market Price, determined by supply and demand, is the price an investor purchases or sells the fund. The Market Price may differ from a fund’s NAV.
*Distribution rate is calculated by annualizing the most recent distribution amount paid, excluding special distributions, divided by the closing market price or NAV. As of 05/31/2021, the fund estimates that the distributions will be paid from: 0.00% investment income;0.00% realized capital gains; and, 100.00% return of capital. The Distribution Rate is subject to change and is not a quotation of Fund performance. The Board of Directors may terminate or suspend the managed distribution policy at any time. Any such termination or suspension could have an adverse effect on the market price of the Fund's shares. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder's investment. For more information about a distribution's composition refer to the Fund's distribution press release or, if applicable, the Section 19 notice located in the Press Releases section below.
A NOTE ABOUT FEES & EXPENSES: Based on the Fund’s net assets of the common shares, as of the most recent Annual Report.
Management fees: Under the investment management agreement, the Fund pays an annual fee, paid monthly, as a portion of the Fund's average daily Managed Assets. “Managed Assets” are defined as net assets plus the amount of any borrowing, including loans from certain financial institutions and/or the issuance of debt securities (collectively, “Borrowings”), and assets attributable to any preferred stock (“Preferred Stock”) that may be outstanding. Please see the fund’s Annual Report for more information on expenses.
Income Tax Expense: Includes deferred income taxes which reflect (i) taxes on unrealized gains (losses), which are attributable to temporary difference between fair market value and tax basis, (ii) the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and (iii) the net tax benefit of accumulated net operating capital losses. To the extent the Fund has a deferred tax asset, consideration is given as to whether a valuation allowance is required. See the fund’s Annual Report for information on taxes.
IMPORTANT CHARACTERISTICS INFORMATION: Portfolio characteristics and holdings are subject to change at any time. Percentages are based on total portfolio as of quarter-end and are subject to change at any time. For informational purposes only and not to be considered a recommendation to purchase or sell any security. Negative allocations and allocations in excess of 100% are primarily due to the Fund's unsettled trade activity.
The difference between total assets and net assets, if any, is due primarily to the Fund’s use of borrowings and other liabilities; net assets do not include borrowings. The Fund may employ leverage in the form of loans, preferred stock, reverse repurchase agreements and/or other instruments. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded.
Percentages are based on total portfolio as of quarter-end and are subject to change at any time. For informational purposes only and not to be considered a recommendation to purchase or sell any security. Negative allocations and allocations in excess of 100% are primarily due to the Fund's unsettled trade activity.
IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio, and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. Any negative allocations or allocations in excess of 100% are primarily due to unsettled trade activities.
Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance.
IMPORTANT DISTRIBUTION INFORMATION: Distributions paid by the Fund may be comprised of income, capital gains, and/or return of capital. At year-end the Fund will issue a Form 1099 with the final composition of the distribution for tax purposes. A current estimate of the distribution's composition can be found in the performance section on this page or in the most recent distribution press release and/or Section 19 notice located in the press release section below. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of Fund performance. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder's investment.
Franklin Resources, Inc., its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.
The Closed-End Funds are not sold or distributed by Legg Mason Investor Services, LLC ("LMIS") or any specialized investment manager of Franklin Resources, Inc. Unlike open-end funds, shares are not continually offered. Like other public companies, closed-end funds have a one-time initial public offering, and once their shares are first issued, are generally bought and sold through non-affiliated broker/dealers and trade on nationally recognized stock exchanges. Share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than your original investment. Shares of exchange-traded closed-end funds may trade at a discount or premium to their original offering price, and often trade at a discount to their net asset value. Net Asset Value (NAV) is total assets less total liabilities divided by the number of shares outstanding. Market Price, determined by supply and demand, is the price an investor purchases or sells the fund. Investment return, market price and net asset value will fluctuate with changes in market conditions. The Funds are subject to investment risks, including the possible loss of principal invested.