HARTFORD, Conn., Feb. 4, 2021 /PRNewswire/ -- The Duff &
Phelps Select MLP and Midstream Energy Fund Inc. (NYSE: DSE),
a closed-end fund subadvised by Duff & Phelps Investment
Management Co., announced today that its Board of Directors has
approved fund management's recommendation to seek shareholder
approval to merge DSE into the Virtus Duff & Phelps Select MLP
and Energy Fund (I Shares: VLPIX), an open-end mutual fund
also subadvised by Duff & Phelps with a similar investment
objective and strategy. The merger would provide common
shareholders of DSE with shares of VLPIX that may be redeemed on a
daily basis at net asset value ("NAV").
Management has closely analyzed options for DSE and recommended
the merger of DSE into VLPIX based on a review of a variety of
factors, including:
- The two funds have a similar investment approach and identical
portfolio management team.
- DSE shareholders will receive shares of VLPIX with an NAV equal
to the value of their DSE shares, meaning that neither set of
shareholders will experience any dilution.
- The transaction is expected to be a tax-free
reorganization.
- The proposed merger would give DSE shareholders the ability to
determine, for tax planning purposes, when to realize potential
gains or losses in the merged fund, which addresses feedback
received from some DSE shareholders regarding the previous proposal
to liquidate the fund.
- There would be meaningful savings for shareholders as a result
of the change in DSE's tax structure from a C-Corporation to a
Regulated Investment Company.
- Shareholders of both funds would benefit from the increased
scale of a larger merged fund.
- DSE shareholders would realize the opportunity to again receive
distributions.
Based on the information presented, the Board agreed with
management that it would be in the best interests of shareholders
of both funds to merge DSE into VLPIX.
The proposal to merge the fund is subject to approval by DSE
shareholders. The approval of VLPIX shareholders is not
required.
Fund Risks
An investment in a fund is subject to risk, including the risk of
possible loss of principal. A fund's shares may be worth less upon
their sale than what an investor paid for them. Shares of
closed-end funds may trade at a premium or discount to their net
asset value. For more information about the fund's investment
objective and risks, please see the fund's annual report. A copy of
the fund's most recent annual report may be obtained free of charge
by contacting Shareholder Services at (866) 270-7788, by email at
duff@virtus.com, or by visiting the DSE website.
Forward-Looking Information
This press release contains statements that are, or may be
considered to be, forward-looking statements. All statements that
are not historical facts, including statements about beliefs or
expectations, are "forward-looking statements" within the meaning
of The Private Securities Litigation Reform Act of 1995. These
statements may be identified by such forward-looking terminology as
"expect," "estimate," "plan," "intend," "believe," "anticipate,"
"may," "will," "should," "could," "continue," "project," or similar
statements or variations of such terms. Forward-looking statements
are based on a series of expectations, assumptions, and
projections; are not guarantees of future results or performance;
and may involve risks and uncertainty. All forward-looking
statements are as of the date of this release only; the fund
undertakes no obligation to update or review any forward-looking
statements. The fund can give no assurance that such expectations
or forward-looking statements will prove to be correct. Actual
results may differ materially. You are urged to carefully consider
all such factors.
Shareholder Services:
DSE Fund Services
(866) 270-7788
duff@virtus.com
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SOURCE Duff & Phelps Select MLP and Midstream Energy Fund
Inc.