From Seekingalpha · Rubicon Research · · 40s
NML CEF Benefits From Energy Boom
Energy fund NML gains from U.S. energy boom with high yield and risk.
In brief
Energy fund NML gains from U.S. energy boom with high yield and risk. Neuberger Energy Infrastructure Fund (NML) offers 8.3% yield but faces sustainability risks due to low income coverage and high leverage. Originally reported by Seekingalpha.
Fund Overview
Neuberger Energy Infrastructure and Income Fund (NML) is a closed-end fund focused on midstream energy companies.
Current Performance
NML trades at an 11.8% discount to net asset value with an 8.3% yield.
Risks and Concerns
High leverage (23% of NAV) and a 2.42% expense ratio amplify return potential and risk, especially in energy downturns.
The headline
Neuberger Energy Infrastructure Fund (NML) offers 8.3% yield but faces sustainability risks due to low income coverage and high leverage.
