Understanding Cohen & Steers' Distribution Sources for Shareholders
Cohen & Steers Total Return Realty Fund Overview
Cohen & Steers Total Return Realty Fund, Inc. (RFI) is dedicated to enhancing shareholder value through a managed distribution policy established to provide regular and predictable income. Understanding the composition of distributions is crucial for shareholders looking to make informed investment decisions.
Distribution Sources and Their Implications
The recent notification outlines the anticipated sources of distribution for shareholders. This includes various components such as long-term capital gains, short-term capital gains, net investment income, and potential returns of capital. Shareholders should be aware that the distribution amounts can fluctuate based on several factors, including market conditions and changes within the Fund's portfolio.
Managed Distribution Approach
Initiated in December 2011, the Fund’s managed distribution policy aims to optimize its total return potential by allowing the Fund to declare consistent monthly distributions based on a fixed rate. This approach grants the Fund the flexibility to realize long-term gains and effectively distribute those to its investors.
What Is Return of Capital?
A portion of the distributions may include a return of capital, which represents funds distributed beyond the net investment income and realized capital gains. While a return of capital is not taxable as income, it does have implications for the adjusted basis of the shares held by investors.
Recent Distribution Estimates
Shareholders can expect detailed distribution estimates for the current fiscal year, indicating specific amounts paid from each source. The communicated figures include projections such as:
- Net Investment Income: $0.0137 (17.13% of distribution)
- Net Realized Long-Term Capital Gains: $0.0663 (82.87%)
- Total Current Distribution: $0.0800 (100%)
Understanding these estimates can equip shareholders to assess the health of their investments better and strategize their financial planning.
Performance Insights for Stakeholders
The year-to-date performance metrics convey valuable insights into how the Fund has been performing thus far, with a cumulative total return illustrated below:
- Year-to-date Cumulative Total Return: 13.52%
- Cumulative Distribution Rate: 6.26%
- Average Annual Total Return over five years: 5.96%
- Current Annualized Distribution Rate: 7.52%
These metrics reveal how effectively the Fund manages investments to not only repay distributions but also provide potential growth for shareholders.
Investor Considerations
When evaluating investments, it is essential for shareholders to consider specific objectives, risks, and expenses associated with Cohen & Steers Total Return Realty Fund. The information provided through formal reports is crucial for understanding how these elements align with personal investment strategies.
Frequently Asked Questions
What does Cohen & Steers focus on as an investment manager?
Cohen & Steers specializes in real assets and alternative income, including real estate, preferred securities, and infrastructure assets.
How is the managed distribution policy beneficial for investors?
This policy allows for regular income through fixed-rate monthly distributions, facilitating financial predictability for investors.
Are returns of capital taxable?
No, but they can reduce the tax basis of shares held, which may impact future capital gains taxes.
What can affect the Fund’s distributions?
Factors like market conditions, management decisions, and overall portfolio performance can influence distribution amounts.
Where can I find more information on the Fund?
Investors can visit Cohen & Steers’ website or access regulatory filings through the Securities and Exchange Commission’s EDGAR Database.
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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
