Source Capital, Inc. Announces Special Distribution for Shareholders

Source Capital, Inc. Announces Special Distribution for Shareholders

In a notable move, the Board of Directors of Source Capital, Inc. (NYSE: SOR) has approved an exciting special distribution slated for December. This decision marks a significant benefit for shareholders, reflecting the Fund's positive performance over the year.

Details of the Special Distribution

The special distribution is expected to be as follows:

Special Distribution Information:

Distribution Details

The details surrounding the special distribution are clear and structured to inform shareholders:

Reason Behind the Distribution

The Internal Revenue Code mandates that regulated investment companies like Source Capital, Inc. must distribute most of their net investment income and capital gains to avoid federal excise tax liabilities. This year-end special distribution is initiated as the company has reported substantial capital gains throughout the year.

About Source Capital, Inc.

Source Capital, Inc., a closed-end investment company, operates under the skilled management of First Pacific Advisors, LP. The company’s shares trade on the New York Stock Exchange, identified by the ticker symbol “SOR.” The primary goal of the Fund is to maximize total returns for shareholders, focusing on both capital appreciation and income while safeguarding invested capital.

Investment Strategy

To achieve its objectives, the Fund may invest significantly in long-term assets and dividend-paying stocks. It also considers illiquid assets, such as private loans, making it suitable for investors with a long-term investment horizon, typically five years or more.

Further Information

For those interested in further details about the Fund and its offerings, the company provides various contact methods. Potential investors can explore more by reaching the Fund directly via email or phone:

Visit the official website for more insights. Investors also have access to comprehensive performance data and updated fund statistics to better inform their investment decisions.

Investing Risks and Considerations

Investing in Source Capital, Inc. entails certain risks that all potential investors should carefully evaluate. Distributions from the Fund may include ordinary income, capital gains, or returns of capital. In some instances, a return of capital may indicate that the distributed amount comprises part of the initial investment instead of income produced by the Fund.

The Market Environment and Its Impact

The distribution rate is subject to fluctuations based on numerous variables. These factors include realized and forecasted market returns, ongoing Fund performance, and other economic indicators. Market trading conditions can also influence the Fund's share price, often trading at values below or above net asset value.

Shareholder Notifications

Shareholders will receive notifications about the estimated composition of distributions through separate written notices, ensuring clarity around tax implications. The final characteristics of distributions will be provided annually via Form 1099-DIV.

Understanding Capital Market Risks

Investments in capital markets can experience volatility that significantly impacts investment value. It is essential for investors to be conscious of these potential market dynamics, including interest rates, regulatory changes, and economic developments that could influence investment performance.

Frequently Asked Questions

What is the purpose of the special distribution announced by Source Capital, Inc.?

The special distribution aims to distribute substantial capital gains and investment income to shareholders, ensuring compliance with tax regulations.

When will shareholders receive the special distribution payment?

The special distribution is payable on January 9, 2025, following the record date of December 30, 2024.

How does Source Capital, Inc. ensure maximum returns for its shareholders?

The Fund focuses on capital appreciation and income, investing in both long-term and illiquid assets while protecting invested capital.

Can investors find details about Fund performance online?

Yes, investors can access performance metrics, portfolio statistics, and other essential information on the Fund's official website.

What risks should investors consider before investing in Source Capital, Inc.?

Investors should consider risks related to market volatility, distribution rates, and the composition of distributed amounts, which may include capital returns.

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