Understanding Cohen & Steers Closed-End Opportunity Fund’s Distributions
Overview of Cohen & Steers Closed-End Opportunity Fund
Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF) provides insightful information for shareholders regarding its distribution sources. Understanding these distributions is crucial for investors interested in how their funds are managed, particularly in a dynamic market environment.
Managed Distribution Policy
The Fund adopted a managed distribution policy in December 2021. This policy was established following exemptive relief from the Securities and Exchange Commission and aims to deliver the Fund's potential total return by providing regular monthly distributions. These distributions are declared at a fixed rate per common share, allowing for greater flexibility in realizing long-term gains throughout the year.
The Board of Directors retains the ability to amend, terminate, or suspend this policy at any time. Such changes can impact the market price of the Fund's shares, highlighting the need for investors to stay informed about the Fund's operational decisions.
Sources of Distributions
The monthly distributions from the Fund may comprise various components, including long-term capital gains, short-term capital gains, net investment income, and returns of capital. A return of capital refers to distributions exceeding the net investment income and realized capital gains. It is important to note that this type of distribution is not immediately taxable. Rather, it reduces the tax basis in an investor's shares of the Fund.
The exact amounts of monthly distributions might fluctuate in response to various factors, including portfolio adjustments and market conditions. Therefore, staying updated on the specific sources and amounts of these distributions is vital for shareholders.
Distribution Communication
Information regarding each monthly distribution will be made available on the official website of Cohen & Steers and will also be mailed directly to shareholders. However, one should be mindful that the information provided at year-end may vary as the final tax characteristics of the distributions will only be determined after the fiscal year concludes.
Performance and Return Insights
The Fund's Year-to-Date Cumulative Total Return reflects its performance, measured from January 1 to January 31 of the fiscal year. For instance, as of the end of January 2025, the cumulative total return was reported at around 3.57%. This figure offers shareholders a tangible indication of how well the Fund's managed assets are performing.
In conjunction with this metric, the Cumulative Distribution Rate for the fiscal year provides insight into the proportional relationship of distributions compared to the net asset value of the Fund. Shareholders can compare this to the Annualized Distribution Rate, which currently stands around 8.48%, giving a comprehensive understanding of potential earnings from their investment.
Investment Considerations
Before investing in Cohen & Steers Closed-End Opportunity Fund, interested individuals should take into account the investment goals, risks, fees, and the overall structure of the Fund. It is wise to consult the most recent periodic reports and regulatory filings to ensure informed decision-making and understanding of potential risks.
Contact Information
For further inquiries regarding the Fund or specifics about the distributions, individuals can contact Robert Klemens, Vice President of Communications. The communication can be made via phone or through their official website, offering a direct channel for shareholder engagement and clarity.
Frequently Asked Questions
What is the main objective of the managed distribution policy?
The primary aim is to enhance the Fund's total return by providing regular monthly distributions, thus offering investors reliable income.
How can I stay updated on monthly distribution details?
Monthly distribution details are posted on the official website of Cohen & Steers and mailed to shareholders, ensuring everyone has access to timely information.
Are returns of capital taxable?
Returns of capital are not immediately taxable; they reduce the tax basis of shares, affecting future tax implications when shares are sold.
What is the significance of the Year-to-Date Cumulative Total Return?
This metric indicates the percentage change in the Fund's net asset value over the specified period, including the distributions paid.
Who can I contact for more information regarding the Fund?
Shareholders can reach out to Robert Klemens, Vice President of Communications, for any questions related to the Fund's performance or distributions.
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