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Understanding the Latest Distribution Notice from Cohen & Steers Closed-End Opportunity Fund, Inc.

Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF), a well-regarded investment fund listed on the NYSE, has released an important update pertaining to its distribution payout scheduled for November 29, 2024. This notification serves to inform shareholders about the different sources from which these distributions will be drawn, as well as to summarize the cumulative distributions disbursed thus far in the 2024 fiscal year. With this update, shareholders can gain deeper insight into how their investments are yielding returns over time.

Managed Distribution Policy Overview

In December 2021, Cohen & Steers implemented a managed distribution policy that was developed in compliance with guidelines from the Securities and Exchange Commission (SEC). The objective of this policy is to ensure that the Fund can achieve its long-term return potential through consistent monthly payments to its shareholders. Under this initiative, distributions are determined at a fixed rate per share, offering predictable income streams.

This managed distribution policy endows the Fund with a level of flexibility, enabling it to capture long-term capital gains throughout the year and deliver those returns to investors on a regular basis. It is noteworthy that the Board of Directors retains the authority to modify, halt, or suspend this policy at their discretion, which may subsequently impact the market price of the shares.

Breakdown of Distribution Sources

The Fund’s forthcoming distribution encompasses various components, including long-term capital gains, short-term capital gains, net investment income, along with a return of capital. For taxation purposes, it is essential to note that a return of capital refers to payments that exceed the Fund's net investment income and realized capital gains. Essentially, this reduces a shareholder's tax basis in their holdings, though it is not treated as taxable income at the moment of distribution.

As detailed in the notification, the November distribution is projected to be $0.0870 per share. Here is a summary of the sources contributing to this payout:

• - Net Investment Income: $0.0375 (43.10% of current distribution)
• - Return of Capital (or other Capital Source): $0.0495 (56.90% of current distribution)

To clarify, although a portion of this distribution might stem from a return of capital, this does not necessarily correlate with the Fund's overall investment performance.

Performance Metrics for 2024

The Fund's Year-to-date (YTD) cumulative total return for the fiscal year has been impressive, standing at 20.01% since January 1, 2024, through October 31, 2024. Coupled with this, it bears mentioning that the cumulative distribution rate has been reported as 7.94%, reflecting the relationship between investors’ returns and the distributions paid. Over the five-year period concluding on October 31, 2024, the average annual total return was 7.26%, with the current annualized distribution rate being 8.66%.

While such figures exhibit a robust performance, investors should understand that they reflect net asset values calculated by the Fund and can fluctuate due to changes in market conditions and other investment dynamics.

Conclusion and Forward-Looking Statements

As shareholders reflect on this distribution update, they should remain cognizant not only of the financial metrics but also the nuances around capital returns and their potential impact on individual tax circumstances. This quarterly notification underscores the ongoing dialogue that Cohen & Steers fosters with its investors, aiming to maintain transparency and provide comprehensive updates regarding the Fund's performance.

For further details on your investment or to explore recent periodic reports, shareholders are encouraged to visit the Fund's website at Cohen & Steers.

Investors are also reminded that the financial landscape is often susceptible to changes, and thus maintaining an awareness of potential shifts in the market is crucial to fortifying one’s investment decisions moving forward.