Cohen & Steers Fund Distribution Insights for Investors

Cohen & Steers Opportunity Fund Distribution Overview

Cohen & Steers Closed-End Opportunity Fund, Inc. (NYSE: FOF) provides its shareholders with essential updates regarding distributions. Understanding the sources of these distributions can be instrumental for investors seeking to optimize their financial strategies.

Managed Distribution Policy Explained

In its commitment to shareholder value, the Fund implemented a managed distribution policy. This strategic approach aims to yield consistent monthly distributions at a fixed rate per common share, enhancing the potential for long-term returns. The policy empowers the Fund to leverage its capital gains throughout the fiscal year, allowing it to distribute these gains systematically. However, the Board of Directors holds the authority to modify, suspend, or terminate this policy, which could influence the market value of the Fund's shares.

Impact on Shareholder Distributions

The monthly distributions from the Fund might consist of various components, including net investment income, short-term capital gains, long-term capital gains, and returns of capital. Return of capital refers to the payments exceeding the Fund's net investment income and capital gains. Importantly, these distributions do not incur immediate tax liabilities; instead, they adjust a shareholder's tax basis in their shares.

Current Distribution Estimates

As of February 2025, the estimated amounts of the current distribution and cumulative distributions illustrate the wealth-sharing philosophy of the Fund, distributed per common share. The breakdown provides clarity on contributions sourced from various investment streams.

Distribution Table Breakdown

The following summarizes the estimated current distribution and cumulative distributions paid year-to-date:

• Net Investment Income: $0.0321 (36.90% of current distribution)
• Net Realized Short-Term Capital Gains: $0.0000 (0.00% of current distribution)
• Net Realized Long-Term Capital Gains: $0.0549 (63.10% of current distribution)
• Return of Capital: $0.0000 (0.00% of current distribution)
• Total Current Distribution: $0.0870 (100% of current distribution)

Fund Performance and Returns

It's vital for shareholders to comprehend the relationship between the Fund's performance and its distribution rates. The Year-to-date Cumulative Total Return serves as a benchmark, illustrating a 3.57% increase from January 1 to January 31, 2025. This achievement is complemented by a Cumulative Distribution Rate of 1.41% for the same period.

Sustained Long-term Returns

Over the past five years, the Fund has showcased a robust Average Annual Total Return of 7.17%. This performance emphasizes the Fund's resilience in adapting to market changes. When understanding investment yields, it's essential to note the Current Annualized Distribution Rate, presently at 8.48% for the ongoing fiscal year.

Important Considerations for Investors

Investors are encouraged to thoroughly assess the investment objectives, risks, charges, and expenses of the Fund before making investment decisions. Distributing detailed periodic reports and regulatory filings helps keep investors informed. Shareholders should proactively connect with their financial advisors for personalized guidance.

Tax Implications and Reporting

It’s crucial for shareholders not to utilize this distribution information for tax return preparation. They will receive Form 1099-DIV at the end of the calendar year, detailing how to report the distributions on their federal income tax returns. This process ensures that shareholders remain compliant and informed.

Contact and Company Information

For further insights or inquiries, shareholders can reach out to Robert Klemens, Vice President of Communications. The firm, Cohen & Steers, specializes in real assets and alternative income, founded in 1986, demonstrating a proven track record in investment management. The firm's headquarters is in New York City, with several global offices enhancing its reach.

Frequently Asked Questions

What is Cohen & Steers Closed-End Opportunity Fund, Inc.?

The Fund is an investment vehicle that allows shareholders to receive monthly distributions derived from income and capital gains.

What does the managed distribution policy mean?

This policy aims to provide a consistent and predictable distribution, leveraging long-term gains for shareholder benefit.

How are distributions taxed?

Distributions may include returns of capital, which are generally not taxable but adjust a shareholder's basis in the investment.

Who can I contact for more information about the Fund?

Investors can reach out to Robert Klemens for inquiries related to the Fund.

What has been the Fund's performance recently?

As of early 2025, the Fund reported a 3.57% Year-to-date Cumulative Total Return, indicating positive performance trends.

About The Author

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