Salient MLP & Energy Infrastructure Fund Announces Its Net Asset Value as of September 30, 2011 and Provides Fund Update

HOUSTON--([ BUSINESS WIRE ])--Salient MLP & Energy Infrastructure Fund (the aFunda) (NYSE: SMF) announced today its net asset value as of September 30, 2011 and provided an update on the funda�s current portfolio and its overall hedging strategy which protected net asset value during the last several months.

As of September 30, 2011 the Funda�s net assets were $136.8 million and the net asset value per share was $22.32 compared to May 31, 2011 when the net assets were $133.5 million and the net asset value per share was $23.82. Over this time period, the net asset value declined by 6.3% compared to the MLP closed-end fund peer group which declined 9.5% on a net asset value basis over this same time period.¹The share price on May 31, 2011 was $25.34 and it closed at $21.17 on September 30, 2011 resulting in a 16.5% price decline which exceeded its 6.3% net asset value decline. As a result, the share price closed on September 30, 2011 at a 5.1% discount to net asset value.

The funda�s actively managed hedging strategy helped protect SMFa�s net asset value from greater decline during the recent market correction between June to September. Below (Figure 1) is an unaudited summary of the realized and unrealized gains from our hedging activity over this time period:


Consolidated Hedging Activity as of 9/30/2011

Unrealized Gains (losses)
Futures Contracts a" RIC	$	355,305
Futures Contracts - C Corp	$	394,967
Swap Contracts	$	1,195,360
Total Consolidated Unrealized Hedging Gains	$	1,945,632

Realized Gains (losses)
Futures Contracts a" RIC	$	4,178,222
Futures Contracts - C Corp	$	(336,874	)
Swap Contracts	$	632,657
Total Consolidated Realized Hedging Gains	$	4,474,006

As a reminder, the fund actively engages in various hedging strategies designed to protect the funda�s net asset value during period of declining equity markets. This hedging strategy makes SMF distinctive among its peer group of MLP closed-end funds.

The Fund was invested as shown in the pie chart in Figure 2 as of September 30, 2011.

The Funda�s ten largest holdings at September 30, 2011 are listed below (Figure 3):


Company	Sector	Shares	Amount (in millions)		Percent of Consolidated Gross Assets
Kinder Morgan Management, LLC	MLP Affiliate	284,206	$	16.7	9.0	%
Enbridge Energy Management, LLC	MLP Affiliate	482,216	$	13.3	7.1	%
Enterprise Products Partners*	MLP	243,330	$	9.8	5.3	%
El Paso Pipeline Partners, L.P.*	MLP	242,600	$	8.6	4.6	%
Energy Transfer Equity, L.P.*	MLP	241,360	$	8.4	4.5	%
Teekay Offshore Partners, L.P.	Marine Midstream	313,110	$	7.7	4.1	%
VOC Energy Trust	Energy Company	361,602	$	7.5	4.1	%
Navios Maritime Partners, L.P.	Marine Midstream	524,740	$	7.0	3.8	%
Kinder Morgan, Inc.	MLP Affiliate	263,750	$	6.8	3.7	%
MV Oil Trust	Energy Company	182,860	$	6.8	3.7	%

*Held indirectly through the wholly owned C-Corporation, Salient MLP & Energy Infrastructure, Inc.

The Funda�s consolidated unaudited balance sheet as of September 30, 2011 is shown below (Figure 4):


Salient MLP & Energy Infrastructure Fund
Consolidated Balance Sheet
September 30, 2011
(Unaudited)

Assets	(in millions)
Investments¹	$	178.6
Cash and Cash Equivalents		3.8
Hedging and Other Assets		3.4
Total Assets		185.8
Liabilities
Line of Credit Payable²		47.3
Payable for Investments Purchased		1.0
Other Liabilities		0.7
Total Liabilities		49.0
Net Assets	$	136.8

The Fund had 6.1 million common shares outstanding as of September 30, 2011

¹ Investments include the gross investment in the Salient MLP & Energy Infrastructure Fund, Inc.'s (C-Corporation) of $45.9 million. Net contributions to the C-Corporation are $35 million.

²The line of credit payable includes the C-Corporation's $12.75 million outstanding line as of September 30, 2011

Past performance is no guarantee of future results.

Salient MLP & Energy Infrastructure Fund is a Delaware statutory trust registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Funda�s investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to shareholders. The Fund seeks to achieve that objective by investing at least 80% of its total assets in securities of MLPs and energy infrastructure companies. There can be no assurance that the Fund will achieve its investment objective.

This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Funda�s present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Funda�s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Funda�s investment objective will be attained.

¹ Peer group defined as other MLP Closed-End Funds. Source: CEFConnect.com, October 3, 2011.

Photos/MultimediaGallery Available: [ http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50022383&lang=en ]

Contributing Sources

Market Wire

N@N

Salient MLP & Energy Infrastructure Fund Announces Its Net Asset Value as of September 30, 2011 and Provides Fund Update