a company called cohen & steers has a special fund. this fund makes payments to people who own shares in it. they just told everyone that they are going to make some payments soon. they also said that they might change their plan later if they want to. they have a special way of giving money back to the people who own shares. people might think that's a good thing, but it could also make the price of the shares go up and down a lot. so, this company just wants everyone to know what's happening with their special fund. Read from source...
After reading the press release provided by PRNewswire titled "Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF) Notification of Sources of Distribution Under Section 19(a)", I noticed a few areas where there may be inconsistencies, biases, irrational arguments, and emotional behavior.
Firstly, the managed distribution policy implemented by the Fund seems to be overly complex, and it is not clearly defined how it seeks to deliver the Fund's long-term total return potential through regular monthly distributions. The Board of Directors of the Fund may amend, terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund's shares. This creates uncertainty and potential risks for investors.
Secondly, the Fund's monthly distributions may include long-term capital gains, short-term capital gains, net investment income, and/or return of capital for federal income tax purposes. The amount of monthly distributions may vary depending on a number of factors, including changes in portfolio and market conditions. The information provided in the press release may change at the end of the year because the final tax characteristics of the Fund's distributions cannot be determined with certainty until after the end of the calendar year. This creates confusion and uncertainty for investors when it comes to tax reporting purposes.
Thirdly, the press release states that "you should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution policy." This statement seems to undermine the confidence of investors in the Fund's investment performance.
Lastly, the press release includes various financial terms and abbreviations, such as NAV, Annual NAV Total Return, and Current Annualized Distribution Rate, without providing clear definitions or explanations. This may create confusion and misunderstanding for investors who are not familiar with these terms.
Overall, the press release would benefit from clearer explanations and definitions of the Fund's managed distribution policy, tax characteristics of distributions, investment performance, and financial terms. Providing more transparent and accessible information to investors is crucial for building trust and confidence in the Fund.
Based on the article provided, Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF) has implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission. The managed distribution policy seeks to deliver the fund's long-term total return potential through regular monthly distributions declared at a fixed rate per common share. The policy gives the fund greater flexibility to realize long-term capital gains throughout the year and to distribute those gains on a regular monthly basis to shareholders. The Board of Directors of the Fund may amend, terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund's shares. The Fund's monthly distributions may include long-term capital gains, short-term capital gains, net investment income, and/or return of capital for federal income tax purposes. Return of capital includes distributions paid by the Fund in excess of its net investment income and net realized capital gains and such excess is distributed from the Fund's assets. A return of capital is not taxable; rather, it reduces a shareholder's tax basis in his or her shares of the Fund. The amount of monthly distributions may vary depending on a number of factors, including changes in portfolio and market conditions. The performance and distribution rate information disclosed in the table is based on the Fund's net asset value per share (NAV). The Fund's NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total liabilities, divided by the total number of shares outstanding. While NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's individual investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.