Cohen & Steers Infrastructure Fund Distribution Insights

Overview of Cohen & Steers Infrastructure Fund

This article presents crucial insights into the Cohen & Steers Infrastructure Fund, Inc. (UTF), focusing on the sources of its distributions and overall performance metrics. Shareholders will find this information particularly valuable as they assess their investment's health and growth prospects.

Managed Distribution Policy Explained

The Fund has adopted a managed distribution policy since 2015 that aligns with regulations set forth by the Securities and Exchange Commission. This strategy aims to enhance long-term return through regular monthly distributions at a predetermined rate. The flexibility of this approach allows the Fund to capitalize on potential long-term capital gains while providing consistent income for shareholders.

Impact on Shareholder Returns

With this managed distribution policy, shareholders can expect regular monthly income, which may fluctuate based on capital gains and other types of income. However, it’s important to note that while the distribution amounts are intended to provide steady returns, they are subject to adjustments based on various market conditions and portfolio changes.

Understanding Distribution Sources

Distributions from the Fund may derive from multiple sources, including net investment income, short-term capital gains, and long-term capital gains, as well as possible returns of capital. The breakdown of these sources is critical for shareholders as it impacts tax implications and the overall investment strategy.

Tax Considerations

It's essential for shareholders to be aware that return of capital isn't taxable; instead, it reduces their tax basis in the Fund's shares, which can have long-term tax implications. Each month, detailed information regarding the distributions will be communicated to shareholders, helping them accurately report for tax purposes.

Recent Distribution Estimates

The current estimated distribution from Cohen & Steers Infrastructure Fund for December is set at $0.1550 per share. This reflects a cumulative distribution total of approximately $1.8600 so far this fiscal year. Understanding these estimates can assist shareholders in gauging the Fund's performance and making informed investment decisions.

Year-to-Date Performance Metrics

As of November 30, the Fund's year-to-date cumulative total return stands at 21.46%, while the cumulative distribution rate is reported at 7.19%. These figures are significant as they correlate directly with the Fund’s distribution strategy and objectives, offering insights into both performance and income generation.

Future Projections and Considerations

Investors should also consider the potential risks associated with these projections. While the managed distribution policy represents an effort to balance income and capital growth, external factors such as market volatility can influence actual outcomes. The Fund's performance will continue to be monitored closely as market dynamics evolve.

Investor Awareness and Resources

Shareholders are encouraged to review the most recent periodic reports from the Fund to stay informed about performance, risks, and investment strategies. These documents are critical for making informed decisions about future investments.

Frequently Asked Questions

What is the managed distribution policy of the Fund?

The managed distribution policy aims to provide regular monthly distributions while allowing flexibility in realizing long-term capital gains throughout the year.

How are distributions sourced for tax purposes?

Distributions may come from net investment income, capital gains, and potential return of capital, which has specific tax treatment implications for shareholders.

What is the significance of year-to-date performance metrics?

Year-to-date performance metrics help investors understand the Fund's performance in relation to its distributions, which is crucial for evaluating investment success.

How does return of capital affect my shares?

Return of capital reduces your tax basis in the Fund’s shares, which can influence future tax obligations.

Where can I find more information about the Fund?

Investors can find more information on the Fund’s official website, where periodic reports and regulatory filings are made available.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.