Understanding Cohen & Steers Infrastructure Fund's Distribution Sources
Introduction to Cohen & Steers Infrastructure Fund
Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) is a well-respected entity in the investment world, particularly known for its focus on real assets. This article aims to provide detailed insights into the Fund's distribution sources, its investment strategies, and recent performance metrics.
Fund's Distribution Policy Explained
In March 2015, the Fund instituted a managed distribution policy, which is designed to enhance long-term total return potential through regular monthly distributions. This policy is approved under the exemption provided by the Securities and Exchange Commission, enabling the Fund to distribute a predetermined return to its shareholders. These distributions are fixed per common share, allowing the Fund to exhibit greater flexibility when realizing long-term capital gains.
The Importance of Distribution Sources
The distributions from Cohen & Steers Infrastructure Fund can come from various sources, including long-term capital gains, short-term capital gains, net investment income, and return of capital. It is essential for shareholders to understand that a return of capital is not classified as taxable income. Instead, it reduces the tax basis of their shares. Therefore, investors will generally keep more of what they earn.
Monthly Distribution Estimates
The estimates provided for the current month's distribution offer transparency regarding the allocation of funds and help investors anticipate their returns. Here are the key figures:
- Net Investment Income: $0.0000 (0.00% of current distribution)
- Net Realized Short-Term Capital Gains: $0.0427 (27.54% of current distribution)
- Net Realized Long-Term Capital Gains: $0.1123 (72.46% of current distribution)
- Return of Capital: $0.0000 (0.00% of current distribution)
This structured format ensures that shareholders are well-informed and prepared for upcoming financial necessities such as tax reporting.
How Distribution Changes Each Year
It is worth noting that distribution amounts can vary based on market conditions and the performance of the underlying assets held by the Fund. These fluctuations necessitate ongoing evaluation by the Fund's Board of Directors, who possess the authority to adjust the managed distribution policy as needed.
Performance Metrics of the Fund
One should peer into the Fund’s year-to-date cumulative total return, which provides a snapshot of performance that can assist investors as they assess their investments. The year-to-date performance reflects growth while considering distributions paid out:
- Year-to-date Cumulative Total Return: 1.11%
- Cumulative Distribution Rate: 1.29%
Historical performance data from longer periods offers a more comprehensive view and can be critical for evaluating the Fund's overall potential. Over a five-year frame, the average annual total return stands at:
- Average Annual Total Return: 4.59%
- Current Annualized Distribution Rate: 7.76%
These yearly averages demonstrate the Fund's consistency and ability to deliver attractive returns to its investors.
Investment Carefully Considered
Before delving into an investment with Cohen & Steers Infrastructure Fund, individuals are encouraged to evaluate the investment objectives and inherent risks associated with the Fund. Knowledge of fees, charges, and other expenses is paramount to making an informed decision.
How to Obtain More Information
For those looking to get updated performance reports, reaching out digitally to the Fund's official website is the easiest way. Reports and filings can provide valuable insights into the strategies and operational efficiency of the Fund. Remember, an astute investor takes the time to review this information before making financial decisions.
Frequently Asked Questions
1. What is Cohen & Steers Infrastructure Fund?
Cohen & Steers Infrastructure Fund (NYSE: UTF) focuses on investments in infrastructure and provides consistent distributions to shareholders.
2. How are distributions sourced?
Distributions can come from net investment income, short-term and long-term capital gains, and sometimes return of capital.
3. What was the total current distribution for this year?
The total current distribution is $0.1550 per share for the current fiscal year.
4. Can I expect variability in distributions?
Yes, distributions can vary based on market conditions and investment performance.
5. Where can I get more information about the Fund?
Visit Cohen & Steers' official website or consult your financial advisor for the latest reports and updates.
About The Author
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