UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number |
811-22780 | |||||||
| ||||||||
Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
| ||||||||
280 Park Avenue New York, NY |
|
10017 | ||||||
(Address of principal executive offices) |
|
(Zip code) | ||||||
| ||||||||
Tina M. Payne 280 Park Avenue New York, NY 10017 | ||||||||
(Name and address of agent for service) | ||||||||
| ||||||||
Registrants telephone number, including area code: |
(212) 832-3232 |
| ||||||
| ||||||||
Date of fiscal year end: |
November 30 |
| ||||||
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Date of reporting period: |
August 31, 2014 |
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Item 1. Schedule of Investments
COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
August 31, 2014 (Unaudited)
|
|
Number of |
|
Value |
| |
MASTER LIMITED PARTNERSHIPS AND RELATED COMPANIES 123.2% |
|
|
|
|
| |
COAL 0.7% |
|
|
|
|
| |
Natural Resource Partners LP(a),(b) |
|
280,000 |
|
$ |
4,446,400 |
|
|
|
|
|
|
| |
COMPRESSION 2.2% |
|
|
|
|
| |
Compressco Partners, LP |
|
100,000 |
|
2,699,000 |
| |
Exterran Partners, LP(b) |
|
158,460 |
|
4,595,340 |
| |
USA Compression Partners, LP(a),(b) |
|
278,640 |
|
7,289,222 |
| |
|
|
|
|
14,583,562 |
| |
CRUDE/REFINED PRODUCTS 23.0% |
|
|
|
|
| |
Buckeye Partners, LP(a),(b) |
|
566,520 |
|
44,755,080 |
| |
Calumet Specialty Products Partners, LP(b) |
|
96,470 |
|
2,929,794 |
| |
Enbridge Energy Management, LLC(b),(c) |
|
1,051,105 |
|
37,650,579 |
| |
Enbridge Inc. (Canada)(b) |
|
151,588 |
|
7,560,579 |
| |
Gibson Energy Inc (Canada) |
|
74,547 |
|
2,499,069 |
| |
Inter Pipeline Ltd. (Canada) |
|
105,000 |
|
3,503,541 |
| |
Lehigh Gas Partners LP |
|
74,911 |
|
2,711,029 |
| |
Magellan Midstream Partners, LP(b) |
|
95,882 |
|
8,047,376 |
| |
NuStar Energy LP(a),(b) |
|
235,008 |
|
15,531,679 |
| |
NuStar GP Holdings, LLC(b) |
|
170,708 |
|
7,348,979 |
| |
Plains GP Holdings, LP(b) |
|
353,627 |
|
10,912,929 |
| |
Rose Rock Midstream, LP(b) |
|
50,477 |
|
3,078,592 |
| |
SemGroup Corporation(b) |
|
70,958 |
|
6,225,145 |
| |
|
|
|
|
152,754,371 |
| |
DIVERSIFIED MIDSTREAM 44.7% |
|
|
|
|
| |
Altagas Ltd. (Canada) |
|
263,640 |
|
12,751,612 |
| |
CorEnergy Infrastructure Trust, Inc.(b) |
|
319,090 |
|
2,552,720 |
| |
Energy Transfer Equity, LP(b) |
|
493,082 |
|
29,905,423 |
| |
Energy Transfer Partners, LP(b) |
|
485,760 |
|
27,906,912 |
| |
Enterprise Products Partners LP(a),(b) |
|
1,399,934 |
|
56,879,318 |
| |
Kinder Morgan Inc.(b) |
|
174,270 |
|
7,016,110 |
| |
Kinder Morgan Management, LLC(b),(c) |
|
805,061 |
|
78,670,544 |
| |
Martin Midstream Partners, LP |
|
85,000 |
|
3,338,800 |
| |
NGL Energy Partners LP(b) |
|
254,072 |
|
10,818,386 |
| |
Spectra Energy Corp(b) |
|
276,457 |
|
11,517,199 |
| |
Summit Midstream Partners LP |
|
86,173 |
|
4,763,643 |
| |
Williams Companies, Inc.(b) |
|
303,213 |
|
18,022,981 |
| |
Williams Partners LP(a),(b) |
|
618,390 |
|
32,780,854 |
| |
|
|
|
|
296,924,502 |
| |
DIVERSIFIED UTILITIES 1.0% |
|
|
|
|
| |
Dominion Resources, Inc. |
|
45,800 |
|
3,216,076 |
| |
Sempra Energy |
|
29,235 |
|
3,098,033 |
| |
|
|
|
|
6,314,109 |
| |
EXPLORATION & PRODUCTION 0.3% |
|
|
|
|
| |
EV Energy Partners LP |
|
50,000 |
|
2,090,000 |
| |
|
|
|
|
|
| |
GATHERING & PROCESSING 18.7% |
|
|
|
|
| |
Access Midstream Partners LP(b) |
|
113,845 |
|
7,325,926 |
| |
Crestwood Equity Partners LP(b) |
|
367,300 |
|
4,683,075 |
| |
Crestwood Midstream Partners LP(b) |
|
301,689 |
|
7,047,455 |
| |
DCP Midstream Partners, LP(a) |
|
209,960 |
|
11,879,537 |
| |
Enlink Midstream Partners, LP(b) |
|
337,100 |
|
10,446,729 |
| |
EQT Corporation |
|
15,677 |
|
1,552,964 |
| |
EQT Midstream Partners, LP(b) |
|
52,650 |
|
5,132,849 |
| |
MarkWest Energy Partners, LP(a),(b) |
|
488,735 |
|
38,966,842 |
| |
Midcoast Energy Partners LP |
|
175,000 |
|
3,937,500 |
| |
Regency Energy Partners LP(a),(b) |
|
289,620 |
|
9,551,668 |
| |
Southcross Energy Partners, LP(b) |
|
366,739 |
|
8,108,599 |
| |
Tallgrass Energy Partners, LP |
|
72,397 |
|
3,098,592 |
| |
Targa Resources Partners LP(b) |
|
162,140 |
|
12,063,216 |
| |
|
|
|
|
123,794,952 |
| |
MARINE SHIPPING/OFFSHORE 12.0% |
|
|
|
|
| |
Dynagas LNG Partners LP |
|
149,200 |
|
3,609,148 |
| |
Golar LNG Partners LP (Marshall Islands)(b) |
|
552,301 |
|
21,031,622 |
| |
Hoegh LNG Partners LP (Marshall Islands)(d) |
|
288,676 |
|
7,473,822 |
| |
KNOT Offshore Partners LP (Marshall Islands)(b) |
|
170,380 |
|
4,779,159 |
| |
Seadrill Partners LLC |
|
265,152 |
|
9,155,699 |
| |
Teekay Offshore Partners LP (Marshall Islands)(b) |
|
763,530 |
|
26,906,797 |
| |
Teekay Shipping Corp (Marshall Islands) |
|
85,000 |
|
5,212,200 |
| |
Transocean Partners LLC (United Kingdom)(d) |
|
60,676 |
|
1,729,873 |
| |
|
|
|
|
79,898,320 |
| |
NATURAL GAS PIPELINES 11.6% |
|
|
|
|
| |||
El Paso Pipeline Partners, LP(a),(b) |
|
743,071 |
|
$ |
30,882,031 |
| ||
Spectra Energy Partners, LP(a),(b) |
|
139,957 |
|
7,976,149 |
| |||
TC Pipelines, LP(a) |
|
109,207 |
|
6,401,714 |
| |||
TransCanada Corporation (Canada)(b) |
|
113,070 |
|
6,076,226 |
| |||
Veresen Inc. (Canada)(b) |
|
1,503,996 |
|
25,755,914 |
| |||
|
|
|
|
77,092,034 |
| |||
OIL & GAS STORAGE 0.5% |
|
|
|
|
| |||
VTTI Energy Partners LP (United Kingdom)(d) |
|
132,080 |
|
3,613,709 |
| |||
|
|
|
|
|
| |||
PROPANE 2.3% |
|
|
|
|
| |||
AmeriGas Partners, L.P.(a) |
|
170,339 |
|
7,881,586 |
| |||
Suburban Propane Partners, LP(a),(b) |
|
162,288 |
|
7,216,947 |
| |||
|
|
|
|
15,098,533 |
| |||
RENEWABLE ENERGY 1.0% |
|
|
|
|
| |||
NextEra Energy Partners LP(d) |
|
47,063 |
|
1,652,382 |
| |||
Pattern Energy Group Inc. |
|
64,620 |
|
2,083,026 |
| |||
TerraForm Power, Inc.(d) |
|
30,250 |
|
945,010 |
| |||
TransAlta Renewables Inc. |
|
168,500 |
|
1,811,611 |
| |||
|
|
|
|
6,492,029 |
| |||
OTHER 5.2% |
|
|
|
|
| |||
Cheniere Energy Partners, LP(a),(b) |
|
638,125 |
|
21,121,937 |
| |||
Sprague Resources LP |
|
375,000 |
|
9,768,750 |
| |||
Westlake Chemical Partners LP(d) |
|
44,843 |
|
1,361,433 |
| |||
Westshore Terminals Investment Corp (Canada) |
|
67,744 |
|
2,253,564 |
| |||
|
|
|
|
34,505,684 |
| |||
TOTAL MASTER LIMITED PARTNERSHIPS AND RELATED COMPANIES |
|
|
|
817,608,205 |
| |||
|
|
|
|
|
| |||
PREFERRED SECURITIES 12.7% |
|
|
|
|
| |||
BANKS 2.3% |
|
|
|
|
| |||
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A(b),(e) |
|
5,000,000 |
|
5,962,500 |
| |||
Farm Credit Bank, 6.75%, due 12/31/49, 144A(e) |
|
23,500 |
|
2,482,188 |
| |||
Fifth Third Bancorp, 6.625%, due 12/31/23 |
|
90,675 |
|
2,491,749 |
| |||
Lloyds Banking Group PLC, 7.500%, due 06/27/24 |
|
2,600,000 |
|
2,733,250 |
| |||
Societe Generale, 7.878%, due 12/18/23 144A(e) |
|
1,800,000 |
|
1,877,310 |
| |||
|
|
|
|
15,546,997 |
| |||
BANKS - FOREIGN 2.8% |
|
|
|
|
| |||
Banco Bilbao Vizcaya Argentaria, SA, 9.00%, due 5/29/49 (Spain)(b) |
|
2,400,000 |
|
2,670,000 |
| |||
Banco Bilbao Vizcaya Argentaria, SA, 7.00%, due 2/19/19 (Spain) |
|
1,200,000 |
|
1,657,162 |
| |||
Banco do Brasil, 9.00%, due 6/18/24 144A (Cayman)(e) |
|
2,000,000 |
|
2,020,000 |
| |||
Barclays PLC, 8.25%, due 12/29/49 (United Kingdom) |
|
1,000,000 |
|
1,061,179 |
| |||
Barclays PLC, 8.125%, due 12/15/14 (United Kingdom) |
|
135,000 |
|
3,499,200 |
| |||
Barclays PLC, 8.00%, due 12/15/20 (United Kingdom) |
|
950,000 |
|
1,354,503 |
| |||
Credit Agricole SA, 7.875%, due 1/23/24, 144A (France)(e) |
|
1,550,000 |
|
1,676,906 |
| |||
Lloyds TSB Bank PLC, 6.657%, due 1/29/49 (United Kingdom) |
|
1,500,000 |
|
1,646,250 |
| |||
Nationwide Building Society, 6.875%, due 6/20/19 (United Kingdom) |
|
1,700,000 |
|
2,851,160 |
| |||
|
|
|
|
18,436,360 |
| |||
CHEMICALS 0.4% |
|
|
|
|
| |||
CHS Inc., 7.10%, due 3/31/24 |
|
100,000 |
|
2,780,000 |
| |||
|
|
|
|
|
| |||
FINANCE 1.2% |
|
|
|
|
| |||
Ally Financial Inc., 8.50%, due 12/31/49 |
|
125,000 |
|
3,408,750 |
| |||
Colony Financial Inc., 8.50%, due 12/31/49 |
|
90,308 |
|
2,406,708 |
| |||
Credit Suisse Group AG, 7.50%, due 12/11/23 |
|
1,769,000 |
|
1,923,788 |
| |||
|
|
|
|
7,739,246 |
| |||
GATHERING & PROCESSING 0.1% |
|
|
|
|
| |||
DCP Midstream LLC, 5.85%, due 5/21/43 144A(e) |
|
1,075,000 |
|
1,048,125 |
| |||
|
|
|
|
|
| |||
INSURANCE 0.6% |
|
|
|
|
| |||
La Mondiale, 7.625%, due 4/23/49 (France)(b) |
|
3,646,000 |
|
4,042,503 |
| |||
|
|
|
|
|
| |||
INTEGRATED TELECOMMUNICATION SERVICES 2.4% |
|
|
|
|
| |||
Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(e) |
|
2,500 |
|
3,143,750 |
| |||
Embarq Corporation, 7.995%, due 6/1/36 |
|
4,000,000 |
|
4,509,560 |
| |||
Frontier Communications Corporation, 9.00%, due 8/15/31 |
|
5,000,000 |
|
5,425,000 |
| |||
T-Mobile, 6.542%, due 4/28/20 |
|
2,575,000 |
|
2,713,406 |
| |||
|
|
|
|
15,791,716 |
| |||
MARINE SHIPPING 0.9% |
|
|
|
|
| |||
Teekay Offshore Partners LP, 7.25%, due 4/30/18 (Marshall Islands)(b) |
|
231,021 |
|
5,870,244 |
| |||
|
|
|
|
|
| |||
REAL ESTATE 0.3% |
|
|
|
|
| |||
American Realty Cap Properties Inc., 6.70%, due 1/3/19 |
|
90,000 |
|
2,127,600 |
| |||
|
|
|
|
|
| |||
UTILITIES 1.7% |
|
|
|
|
| |||
Enel S.P.A., 8.75%, due 9/24/73, 144A, (Italy)(e) |
|
4,200,000 |
|
4,956,000 |
| |||
Integrys Energy Group, 6.00%, due 8/1/73 |
|
144,119 |
|
3,778,800 |
| |||
Nextera Energy Capital, 5.625%, due 6/15/72 |
|
95,000 |
|
2,303,750 |
| |||
|
|
|
|
11,038,550 |
| |||
TOTAL PREFERRED SECURITIES |
|
|
|
|
|
84,421,341 |
| |
TOTAL INVESTMENTS (Identified cost - $733,815,491) |
|
135.9 |
% |
|
|
902,029,546 |
| |
|
|
|
|
|
|
|
| |
LIABILITIES IN EXCESS OF OTHER ASSETS |
|
(35.9 |
) |
|
|
(238,076,819 |
) | |
NET ASSETS (Equivalent to $24.72 per share based on 26,855,452 shares of common stock oustanding) |
|
100.0 |
% |
|
|
$ |
663,952,727 |
|
Note: Percentages indicated are based on the net assets of the Fund.
(a) All or a portion of this security is held by the Cohen & Steers MLP Investment Fund, a wholly-owned subsidiary.
(b) All or a portion of this security has been pledged as collateral in connection with the Funds line of credit agreement. As of August 31, 2014, the total value of securities pledged as collateral for the line of credit agreement was $520,972,681.
(c) Distributions are paid-in-kind.
(d) Non-income producing security.
(e) Resale is restricted to qualified institutional investors. Aggregate holdings equal 3.5% of the net assets of the Fund, of which 0.0% are illiquid.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on December 13, 2012 and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a non-diversified, closed-end management investment company. The Fund applies investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946. The Funds investment objective is to provide attractive total return, comprised of high current income and price appreciation. The Fund had no operations until February 8, 2013 when it sold 5,250 common shares to Cohen & Steers Capital Management Inc. (the investment advisor). Investment operations commenced on March 26, 2013.
Cohen & Steers MLP Investment Fund (the Subsidiary), a wholly-owned subsidiary of the Fund organized under the laws of the state of Maryland, was formed on January 30, 2013 and commenced operations on March 26, 2013. The Subsidiary acts as an investment vehicle for the Fund in order to effect certain investments on behalf of the Fund, consistent with the Funds investment objectives and policies as described in the Funds prospectus. The Fund expects that it will achieve a significant portion of its exposure to Master Limited Partnerships (MLPs) through investment in the Subsidiary. Unlike the Fund, the Subsidiary may invest without limitation in MLPs. As of August 31, 2014, the Fund held an investment of $164,166,935 in the Subsidiary, representing 20.9% of the Funds total assets (based on U.S. Federal income tax regulations). The Consolidated Schedule of Investments includes the accounts of the Fund and the Subsidiary. Where the context requires, the Fund includes both the Fund and Subsidiary. All significant inter-company balances and transactions have been eliminated in consolidation.
Note 2. Portfolio Valuation
Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price.
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by the investment advisor to be over-the-counter, are valued at the last sale price on the valuation date as reported by sources deemed appropriate by the Board of Directors to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair market value of such securities.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing net asset value.
The policies and procedures approved by the Funds Board of Directors delegate authority to make fair value determinations to the investment advisor, subject to the oversight of the Board of Directors. The investment advisor has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved
annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities for which market prices are unavailable, or securities for which the investment advisor determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Funds Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign markets.
The Funds use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Funds investments is summarized below.
· Level 1quoted prices in active markets for identical investments
· Level 2other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)
· Level 3significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 securities as of August 31, 2014.
The following is a summary of the inputs used as of August 31, 2014 in valuing the Funds investments carried at value:
|
|
Total |
|
Quoted Prices |
|
Other |
|
Significant |
| ||||
Investments In Securities |
|
|
|
|
|
|
|
|
| ||||
Master Limited Partnerships and Related Companies |
|
$ |
817,608,205 |
|
$ |
817,608,205 |
|
$ |
|
|
$ |
|
|
Preferred Securities: |
|
|
|
|
|
|
|
|
| ||||
Banks |
|
15,546,997 |
|
2,491,749 |
|
10,573,060 |
|
2,482,188 |
(b) | ||||
Banks - Foreign |
|
18,436,360 |
|
3,499,200 |
|
14,937,160 |
|
|
| ||||
Finance |
|
7,739,246 |
|
5,815,458 |
|
1,923,788 |
|
|
| ||||
Gathering Processing |
|
1,048,125 |
|
|
|
1,048,125 |
|
|
| ||||
Insurance |
|
4,042,503 |
|
|
|
4,042,503 |
|
|
| ||||
Integrated Telecommunication Services |
|
15,791,716 |
|
|
|
15,791,716 |
|
|
| ||||
Utilities |
|
11,038,550 |
|
6,082,550 |
|
4,956,000 |
|
|
| ||||
Other |
|
10,777,844 |
|
10,777,844 |
|
|
|
|
| ||||
Total Investments In Securities(c) |
|
$ |
902,029,546 |
|
$ |
846,275,006 |
|
$ |
53,272,352 |
|
$ |
2,482,188 |
|
(a) Certain of the Funds investments are categorized as Level 3 and were valued utilizing third party pricing information without adjustment. Such valuations are based on significant unobservable inputs. A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.
(b) Valued by a pricing service which utilized independent broker quotes.
(c) Portfolio holdings are disclosed individually on the Consolidated Schedule of Investments.
Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
|
|
Total |
|
Master Limited |
|
Preferred |
| |||
Balance as of November 30, 2013 |
|
$ |
2,520,800 |
|
$ |
2,520,800 |
|
$ |
|
|
Change in unrealized appreciation (depreciation) |
|
679,200 |
|
679,200 |
|
|
| |||
Transfers into Level 3(a) |
|
2,482,188 |
|
|
|
2,482,188 |
| |||
Transfers out of Level 3(b) |
|
(3,200,000 |
) |
(3,200,000 |
) |
|
| |||
Balance as of August 31, 2014 |
|
$ |
2,482,188 |
|
$ |
|
|
$ |
2,482,188 |
|
The change in unrealized appreciation (depreciation) attributable to securities owned on August 31, 2014, which were valued using significant unobservable inputs (Level 3) amounted to $172,577.
(a) As of November 30, 2013, the Fund used significant observable inputs in determining the value of certain investments. As of August 31, 2014, the Fund used significant unobservable inputs in determining the value of the same investments.
(b) As of November 30, 2013, the Fund used significant unobservable inputs in determining the value of this investment. As of August 31, 2014, the Fund used a quoted price in determining the value of the same investment, which resulted from the expiration of a lockup on these shares on March 3, 2014.
Note 3. Income Tax Information
As of August 31, 2014, the federal tax cost and unrealized appreciation and depreciation in value of securities held were as follows:
Cost for federal income tax purposes |
|
$ |
733,815,491 |
|
Gross unrealized appreciation |
|
$ |
173,855,115 |
|
Gross unrealized depreciation |
|
(5,641,060 |
) | |
Net unrealized appreciation (depreciation) |
|
$ |
168,214,055 |
|
Note 4. Proposed Tax Regulation
On August 2, 2013, the Internal Revenue Service (IRS) issued proposed regulations which, if adopted in their current form, would require the Fund to limit its overall investment in MLPs to no more than 25% of the Funds total assets. The proposed regulations would not limit the Funds investments in affiliates of MLPs or other Energy Investments structured as corporations rather than as MLPs. The proposal has no immediate impact on the current operations of the Fund. It has not been determined whether, when or in what form these proposed regulations will be adopted, or, if adopted, the impact such regulations may have on the Fund. If ultimately adopted as proposed, the regulations will apply to taxable quarters beginning at least 90 days after publication of the new rules.
The IRS had requested comments on the proposed regulations by October 31, 2013, and received a number of comments. The IRS adoption of the proposed regulations remains uncertain at this time.
The Funds investment advisor believes that, in the event the proposed regulations are adopted in their proposed form, the Fund will be able to otherwise continue to pursue its investment objective and strategies by either (i) maintaining its status as a regulated investment company by reducing its investments in MLPs and eliminating the Subsidiary or (ii) converting to a C-Corporation for tax purposes which would allow the Fund to invest up to 100% of its assets in MLPs, but which may have a negative impact on the Funds net asset value on the date of conversion as a result of recognition of deferred tax expense on Fund assets not held in the Subsidiary. Any change from the Funds current structure may negatively affect the price at which the Funds shares trade, and the Funds investment returns and distribution yield.
Item 2. Controls and Procedures
(a) The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act as of a date within 90 days of the filing of this report.
(b) During the last fiscal quarter, there were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COHEN & STEERS MLP INCOME AND ENERGY OPPORTUNITY FUND, INC.
By: |
/s/ Adam M. Derechin |
|
|
|
Name: Adam M. Derechin |
|
|
|
Title: President |
|
|
|
|
|
|
|
Date: October 28, 2014 |
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: |
/s/ Adam M. Derechin |
|
By: |
/s/ James Giallanza |
|
Name: Adam M. Derechin |
|
|
Name: James Giallanza |
|
Title: President and Principal Executive Officer |
|
|
Title: Treasurer and Principal Financial Officer |
|
|
|
|
|
|
Date: October 28, 2014 |
|
|
October 28, 2014 |