Cohen & Steers Fund Announces Distribution Sources and Updates
Understanding the Latest Distribution Sources for Cohen & Steers Total Return Realty Fund
Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) is providing crucial information to its shareholders regarding distribution sources. This announcement seeks to clarify the upcoming distributions that are set to be paid out soon and provide a comprehensive overview of cumulative distributions for the fiscal year.
What is the Managed Distribution Policy?
In 2011, the Fund introduced a managed distribution policy. This initiative, authorized by the Securities and Exchange Commission, aims to ensure that shareholders receive regular monthly distributions. By maintaining a fixed rate per common share, the managed distribution policy allows the Fund to potentially achieve higher long-term returns through regular capital distributions. This flexibility helps the Fund distribute long-term capital gains effectively throughout the year, although it comes with the risk that the Board of Directors may amend or suspend this policy at any time.
Understanding Distribution Types
The distributions shareholders receive from Cohen & Steers may comprise various components: long-term capital gains, short-term capital gains, net investment income, and return of capital. A return of capital signifies that a portion of the distribution exceeds the Fund's net investment income and net realized capital gains. Although a return of capital is not subject to taxation, it does reduce a shareholder's tax basis in their shares.
Distributions stemming from investments in Real Estate Investment Trusts (REITs) might also face adjustments that could categorize them as capital gains or a return of capital. This means that shareholders may need to consider the nature of these distributions when preparing for tax reporting.
Monthly Distribution Updates
Cohen & Steers is committed to keeping shareholders informed. As each monthly distribution approaches, detailed information will be made available via official communication channels, including the company's website. However, it is important to note that final tax characteristics of the distributions will only be determined once the calendar year concludes, often leading to subsequent adjustments.
Distribution Estimates Overview
As of the latest announcements, the following estimates for distributions have been detailed, expressed on a per share basis. The cumulative distributions reflect the percentages and amounts paid throughout the fiscal year, allowing shareholders to understand what has been distributed thus far.
Current and Year-to-Date Distributions
The table provided outlines key metrics such as net investment income, realized capital gains, and total distributions. For instance, for recent figures, the total current distribution stands at $0.0800 per share for the latest period, contributing to a 100% distribution rate.
Performance and Distribution Insights
The Fund's year-to-date cumulative total return stands impressive, showcasing shareholders' interests. The cumulative total return reflects how the net asset value (NAV) has changed throughout the period, incorporating distributions paid in an assumed reinvestment scenario. The data indicates a cumulative total return of approximately 3.45% alongside a cumulative distribution rate of around 5.58%.
This reflects a significant alignment between returns and distributions, showcasing the effectiveness of the Fund's established policies. Additionally, the five-year average annual total return of 6.55% signifies the reliability and growth potential for investors.
Future Considerations for Investors
Investors must remain vigilant in understanding the investment objectives, risks, and associated charges of the Fund. It is advised to review the latest periodic reports and regulatory filings thoroughly before making any investment decisions. These documents help in gauging the current performance and provide insights into future expectations.
Frequently Asked Questions
What is the rationale behind the managed distribution policy?
The managed distribution policy aims to maintain shareholder confidence by providing regular monthly distributions and enhancing long-term total return potential.
Can distributions be characterized differently for tax purposes?
Yes, distributions may be classified as long-term capital gains, short-term capital gains, or a return of capital based on the Fund's investment performance.
How often will the Fund update shareholders on distributions?
Shareholders will receive updates and detailed information regarding distributions each month prior to payments being made.
What should shareholders expect on their Form 1099-DIV?
Form 1099-DIV will detail how to report Fund distributions for federal income tax purposes once the calendar year has concluded.
How can investors access more detailed information about the Fund?
Dive deeper into Fund reports and other filings by consulting the official website or contacting your financial advisor directly.
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