Cohen & Steers Fund Distribution Insights You Should Know
Cohen & Steers Total Return Realty Fund Distribution Overview
Investors often seek insight into the performance and distributions of their funds, and Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) is no exception. The fund is designed to provide updates on its distribution sources, especially as it continues to adjust its managed distribution policy. Such policies enable the fund to distribute ongoing earnings while intending to maximize long-term returns for shareholders.
Managed Distribution Policy Explained
In an effort to enhance shareholder value, Cohen & Steers implemented a managed distribution policy. This innovative approach allows the fund to declare regular monthly distributions at a fixed rate per common share. The flexibility inherent in this policy can facilitate timely capital gains realizations throughout the year, providing shareholders with more immediate returns.
Potential Implications of Changes in Policy
It’s essential to know that the Board of Directors retains the authority to amend, suspend, or terminate the managed distribution policy. Should such changes occur, they may significantly impact the market price of the fund's shares, highlighting the intricate balance between policy and performance.
Understanding Monthly Distributions
The monthly distributions may derive from various sources including long-term capital gains, net investment income, and returns of capital. A return of capital signifies that the amount distributed exceeds the fund’s net investment income, reducing the shareholder's taxable basis and potentially offsetting future capital gains.
Tax Considerations for Shareholders
As the year progresses, distribution characteristics will be finalized to reflect the fund’s tax obligations. Investors can expect to receive Form 1099-DIV by postal mail after the calendar year concludes detailing how to report these distributions for federal income tax purposes. It’s vital for shareholders to retain this for accurate tax filing.
Distribution Estimates and Performance Metrics
For the current fiscal year, the estimated monthly distribution amounts can vary based on numerous factors, including market conditions and changes in the fund's portfolio composition. Below is a summary of the most recent distribution estimates:
Estimated Distribution Summary:
- Net Investment Income: $0.0513 per share, contributing 64.13% to the current distribution.
- Net Realized Short-Term Capital Gains: $0.0000 per share, making no contribution.
- Net Realized Long-Term Capital Gains: $0.0287 per share, representing 35.87% of the current distribution.
- Total Current Distribution: $0.0800 per share, comprising 100% of this month’s distributions.
Performance Overview
The year-to-date cumulative total return for the fiscal period has been an informative measure for investors. Recently, the fund reported a cumulative total return of 3.46% covering the period from January 1 to May 31. It’s crucial for investors to align their expectations around this cumulative total return with the fund's cumulative distribution rate.
Five-Year Historical Performance
The fund also showcases an average annual total return of 7.89% over the past five years, with a current annualized distribution rate of 8.25%. These metrics highlight the fund's consistent commitment to delivering shareholder value across varying market conditions, which is a hallmark of a robust investment strategy.
Investment Risks and Considerations
As with any investment, understanding associated risks, charges, and expenses is paramount for any potential investor considering the Cohen & Steers Fund. Prospective investors should diligently review the fund's periodic reports and regulatory filings to grasp all the pertinent details before making investment decisions.
On another note, it’s beneficial for shareholders to recognize that they will receive comprehensive documentation regarding their tax implications. Form 1099-DIV will elaborate on how to accurately reflect these distributions in tax returns.
Frequently Asked Questions
What is Cohen & Steers Total Return Realty Fund?
Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) is an investment fund focused on providing regular distributions to shareholders through a managed distribution policy.
How does the managed distribution policy work?
The managed distribution policy allows the fund to distribute gains regularly while maximizing long-term capital returns, offering flexibility in managing assets and distributions.
What are the potential sources of distributions?
Distributions may include net investment income, realized capital gains, and returns of capital depending on performance and market conditions.
How are distributions reported for tax purposes?
Shareholders will receive a Form 1099-DIV after the end of the calendar year, indicating how to report distributions for federal income tax purposes.
What are the average returns of the fund?
The fund has reported an average annual total return of 7.89% over five years, with a current annualized distribution rate of 8.25%.
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