Understanding Cohen & Steers Infrastructure Fund (UTF) Distributions
Cohen & Steers Infrastructure Fund Overview
Cohen & Steers Infrastructure Fund, Inc. (UTF) has become a focal point for investors seeking opportunities in real assets and alternative income. This detailed overview provides valuable insights about the Fund's distribution strategies, estimated amounts, and performance metrics.
Fund Distribution Policy
In March 2015, the Fund adopted a managed distribution policy aimed at providing predictable returns through fixed monthly distributions to shareholders. This policy is designed to balance long-term capital gains throughout the year while offering a steady cash flow to investors. The managed distribution policy is flexible and can be amended or suspended by the Fund's Board of Directors, which has implications for the market price of the Fund's shares.
Types of Distributions
Understanding how the Fund distributes its earnings is critical for shareholders. The sources of the monthly distributions can include long-term capital gains, short-term capital gains, net investment income, and return of capital. A return of capital occurs when distributions exceed the Fund's net investment income and realized capital gains, effectively reducing a shareholder's tax basis.
Distribution Estimates
Shareholders are notified of the monthly distributions, including their components and estimates, via notices sent to their addresses. It's crucial to understand that these estimates can change throughout the year due to various factors affecting the Fund's performance and market conditions. For the fiscal year-to-date, the expected distribution amounts have been outlined to keep investors informed.
Fund Performance Analysis
The Fund's performance metrics, including the Year-to-date Cumulative Total Return, help investors gauge its effectiveness in achieving financial goals. For example, during the first month of the year, the Cumulative Total Return stood at 1.11%, reflecting the performance of investments made. Understanding this performance is essential as it relates to the Fund's Cumulative Distribution Rate, subject to evaluations based on net asset value (NAV).
Current Annualized Distribution Rate
As of the most recent calculations, the Fund's Current Annualized Distribution Rate is 7.76%. This percentage reflects the current fiscal period's distribution relative to the NAV calculated on January 31, 2025. This analysis gives investors important insight into the expected income generated from the Fund's operations relative to investment value.
Investment Considerations
Before investing in the Cohen & Steers Infrastructure Fund, potential investors should consider several factors, including the investment objectives, risks, charges, and expenses associated with the Fund. This information is pivotal as it allows investors to make well-informed decisions based on personal financial goals and risk tolerance.
Contact and Further Information
For additional insights, the Fund's most recent periodic reports are available through their website. It is advisable to review these documents to grasp the underlying strategies employed and the regulatory filings that dictate the Fund's operations.
Frequently Asked Questions
What is the purpose of the managed distribution policy?
The managed distribution policy aims to provide regular, predictable income to shareholders while allowing the Fund to balance gains throughout the fiscal year.
How are distributions classified for tax purposes?
Distributions can include net investment income, capital gains, and return of capital. The return of capital is not taxable and reduces a shareholder's tax basis in the Fund's shares.
What is the significance of the Current Annualized Distribution Rate?
The Current Annualized Distribution Rate provides insights into how much income investors can expect relative to the Fund's NAV, thus helping in financial planning.
How do external factors affect Fund distributions?
Fund distributions are influenced by market conditions, portfolio performance, and changes in investment strategies, leading to potential adjustments in monthly payouts.
Where can I find more information about the Fund?
Investors can visit the Fund's official website for periodic reports and updates or consult with their financial advisors for tailored insights.
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