NEW YORK, Jan. 3, 2017 /PRNewswire/ -- Cohen & Steers
MLP & Energy Opportunity Fund, Inc. (symbol MLOAX) is celebrating its three-year anniversary. The Fund offers investors
access to an important real asset class: midstream energy. Since inception, it is ranked in the top quartile versus 85 funds
across all share classes of its Energy Limited Partnership Morningstar Category peer group.
"We believe a fundamental upcycle is emerging in midstream energy," said Tyler Rosenlicht, Vice
President and Portfolio Manager. "We expect the oil market re-balancing to continue, which will lead to a resurgence in North
American shale production and improve the midstream industry's fundamental drivers. In the meantime, rapidly evolving industry
dynamics are creating opportunities for high-conviction active managers to generate alpha in the midstream sector."
Cohen & Steers MLP & Energy Opportunity Fund affords a tax advantage over many of its peers, in our opinion. The Fund
is structured as a registered investment company (RIC) and therefore qualifies for tax treatment that eliminates the burden of
double taxation. Many MLP funds are organized under a C-corporation structure, which accrue deferred tax liabilities on any
return of capital and unrealized capital gains. At the current corporate tax rate, the deferred tax liability from a C-corp fund
entity can erode as much as 35% from an investor's total return in a rising market environment and potentially result in
substantially higher fees to the investor.
In addition, unlike many of its peers, the Fund's investable universe goes beyond securities structured as MLPs—investing also
in general partner C-corps, midstream corporations, Canadian midstream businesses and other energy infrastructure businesses with
predictable cash flows and growth opportunities.
"We believe the RIC fund structure combined with the broad investment universe is an attractive way to invest in midstream
energy space, with the potential to enhance the overall risk-adjusted return profile of an investor's portfolio." said
Joseph Harvey, President and Chief Investment Officer.
The Fund's investment objective is to provide attractive total return, comprised of current income and price appreciation,
through investments in midstream energy-related master limited partnerships (MLPs) and securities of companies that derive at
least 50% of their revenues or operating income from the gathering, processing, transportation, storage or distribution of
natural gas, crude oil and other energy resources.
COHEN & STEERS MLP & ENERGY OPPORTUNITY FUND AVERAGE ANNUAL TOTAL
RETURNS NET OF FEES, AS OF 12/31/16.
|
|
Fund
|
Alerian MLP Index (a)
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Alerian Energy
Infrastructure Index (b)
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1 Year
|
39.73%
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22.86%
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47.03%
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3 Year
|
–2.02%
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–5.67%
|
1.10%
|
Since inception (12/20/13)
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–1.13%
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–4.48%
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1.97%
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Performance data quoted represents past performance, which is no
guarantee of future results. Returns are net of fees. Current performance may be lower or higher than the
performance quoted. The investment return and the principal value of an investment will fluctuate and shares, when
redeemed, may be worth more or less than their original cost. An investor cannot invest directly in an index and index
performance does not reflect the deduction of any fees, expenses or taxes. Since inception for the Alerian MLP Index and
Alerian Energy Infrastructure Index is calculated from nearest month-end. Periods greater than 12 months are annualized.
Returns are historical and include change in share price and reinvestment of all distributions. Month-end performance
information can be obtained by visiting our website at cohenandsteers.com.
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Gross Expense Ratio (Class A): 1.91%; Net Expense Ratio (Class A): 1.46% as
disclosed in the April 1, 2016 prospectus as amended May 4, 2016. Through June 30, 2018, Cohen & Steers has
contractually agreed to waive its fee and/or reimburse the Fund so that total annual Fund operating expenses (excluding
acquired fund fees and expenses, taxes and extraordinary expenses) does not exceed 1.46%. Absent such arrangements
returns would have been lower.
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(a) The Alerian MLP Index is a composite of the 50 most prominent energy
Master Limited Partnerships (MLPs) that provides investors with an unbiased, comprehensive benchmark for this emerging
asset class. The index is calculated using a float adjusted, capitalization-weighted methodology.
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(b) Alerian Energy Infrastructure Index. The Alerian Energy Infrastructure
Index is a composite of 30 core North American energy infrastructure companies that engage in the transportation,
storage, and processing of energy commodities. Index constituents are equally weighted within five categories.
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The comparison of the RIC v. C-corp structure pertains primarily to
open-end funds. Closed-end funds with RIC or C-corp tax status face a similar tax impact on returns, however a number of
closed-end funds that invest in midstream energy and MLPs employ leverage in order to meet their income targets, which
amplifies the market returns and tax impact. This information is provided for illustrative purposes only and should not
be construed as legal or tax advice. You should consult your financial or tax advisor regarding your individual
circumstances.
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The Overall Morningstar Rating is derived from a weighted average of the
risk-adjusted performance figures associates with a fund's 3-, 5-, and 10-year (if applicable) Morningstar Rating
metrics. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause
slight variations in the distribution percentages.
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Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. A summary
prospectus and prospectus containing this and other information may be obtained from your financial advisor, by calling
800-330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus or prospectus carefully before
investing.
Risks of investing in MLP Securities
An investment in MLPs involves risks that differ from a similar investment in equity securities, such as common stock,
of a corporation. Holders of equity securities issued by MLPs have the rights typically afforded to limited partners in a limited
partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and
limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in equity
MLP units. Additionally, conflicts of interest may exist among common unit holders, subordinated unit holders and the general
partner or managing member of an MLP; for example a conflict may arise as a result of incentive distribution payments.
This material represents an assessment of the market environment at a specific point in time, should not be relied upon as
investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or
an offer for a particular security. We consider the information in this announcement to be accurate, but we do not represent that
it is complete or should be relied upon as the sole source of suitability for investment.
Cohen & Steers Capital Management, Inc. (Cohen & Steers) is a registered investment advisory firm that provides
investment management services to corporate retirement, public and union retirement plans, endowments, foundations and mutual
funds. Cohen & Steers MLP & Energy Opportunity Fund is distributed by Cohen & Steers Securities, LLC. Cohen
& Steers U.S.-registered open-end funds are only available to U.S. residents.
Symbol: (NYSE: CNS)
About Cohen & Steers. Cohen & Steers is a global investment manager specializing in liquid real assets,
including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred
securities and other income solutions. Founded in 1986, the firm is headquartered in New York
City, with offices in London, Hong Kong, Tokyo and Seattle.
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SOURCE Cohen & Steers MLP & Energy Opportunity Fund, Inc.