Cohen & Steers Infrastructure Fund Announces Key Distribution Sources for Shareholders in 2025
Understanding the Recent Announcement from Cohen & Steers Infrastructure Fund (UTF)
On April 28, 2025, Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) released critical information for its shareholders concerning the anticipated sources of distribution for payments due on April 30, 2025. This notice comes as part of the Fund's ongoing commitment to transparently communicate distribution details and other performance metrics to its investors.
Managed Distribution Policy Overview
Cohen & Steers has been following a managed distribution policy since March 2015, which has been developed in line with the exemptive relief granted by the Securities and Exchange Commission (SEC). This policy facilitates the Fund's aim of providing consistent monthly distributions, effectively allowing shareholders to benefit from the Fund’s long-term total return potential. The fixed-rate monthly distributions are designed to offer a reliable source of income for investors, reflecting the dynamic nature of the Fund's portfolio and overall market conditions.
The board of directors retains the authority to amend, suspend, or terminate this policy. Such changes could influence the market price of the Fund's shares, making it crucial for shareholders to remain vigilant and informed about any updates.
Breakdown of Distribution Sources
According to the latest distribution estimates, the Fund's monthly payouts can incorporate various sources of income, including long-term capital gains, short-term capital gains, and net investment income, as well as a return of capital. Here’s the estimated distribution breakdown:
1. Net Investment Income: $0.1152 per share (74.32% of current distribution)
2. Net Realized Short-Term Capital Gains: $0.0000 per share (0.00% of current distribution)
3. Net Realized Long-Term Capital Gains: $0.0398 per share (25.68% of current distribution)
4. Return of Capital: $0.0000 per share (0.00% of current distribution)
The total current distribution is estimated at $0.1550 per share, reflecting the multiple income sources that contribute to the Fund’s finances. For the fiscal year date up to April 30, 2025, the cumulative distribution totals to $0.6200 per share.
It is crucial for shareholders to note that a return of capital is classified as a distribution exceeding the Fund's net investment income and net realized capital gains. This particular component does not incur taxation but rather diminishes the shareholder’s tax basis in the shares held.
Tax Reporting Considerations
The Fund emphasizes that while interim distribution figures are being provided to inform shareholders, this data may be subject to revision by the close of the fiscal year. For accurate tax reporting, shareholders will receive a Form 1099-DIV detailing the actual amounts and sources associated with their distributions, as taxation treatment can vary significantly.
Fund Performance Summary
As part of its distribution announcement, the Fund also shared its Year-to-date Cumulative Total Return for fiscal year 2025, recorded at 5.13%, with a Cumulative Distribution Rate of 2.52%. Over the five-year period concluding March 31, 2025, the Average Annual Total Return stood at 12.25%, indicating successful management of the Fund's assets over time, with a Current Annualized Distribution Rate pegged at 7.56%.
These performance metrics emphasize the investment potential and stability that Cohen & Steers Infrastructure Fund has aimed to maintain amidst changing market conditions.
Conclusion
Investors considering their financial strategies and looking toward 2025 must take into account not only the anticipated distributions but also the broader performance indicators provided by Cohen & Steers. The ongoing transparency and the adjustments to the managed distribution policy serve as essential factors in evaluating the future of their investments.
Shareholders are encouraged to stay updated through Cohen & Steers' official communications and their dedicated website, ensuring they remain informed about potential changes affecting their holdings. By understanding these factors, investors can make more informed decisions regarding their investments in the Fund’s shares.