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Insights into Cohen & Steers Closed-End Opportunity Fund's Distribution Sources

Cohen & Steers Closed-End Opportunity Fund, Inc. (NYSE: FOF) provides crucial information for its shareholders regarding the distribution sources effective as of May 30, 2025. This notification, which represents a part of the firm's managed distribution policy initiated in December 2021, aims to ensure shareholders are informed about the potential sources of income they might receive and the implications associated with those distributions.

Managed Distribution Policy

The fund undertakes a managed distribution approach, which allows it to deliver consistent monthly distributions to shareholders. This policy was developed under an exemptive relief granted by the Securities and Exchange Commission (SEC). By declaring distributions at a fixed rate per common share, the fund can maintain flexibility in achieving long-term capital gains and distributing those gains monthly.

The Board of Directors at Cohen & Steers retains the authority to amend, suspend, or terminate this managed distribution policy at any given time. Such amendments could potentially impact the market price of the Fund's shares, making it essential for investors to stay updated on policy changes.

Breakdown of Distribution Sources

The distributions from the Fund consist of various components, which are outlined as follows for the month of May 2025:

• - Net Investment Income: $0.0492 (56.55%)
• - Net Realized Short-Term Capital Gains: $0.0000 (0.00%)
• - Net Realized Long-Term Capital Gains: $0.0378 (43.45%)
• - Return of Capital: $0.0000 (0.00%)

These amounts highlight that a significant portion of the current distribution stems from net investment income and long-term capital gains, while there have been no contributions from short-term capital gains or capital returns this month. This distribution pattern reflects the ongoing management strategies and market conditions that influence the Fund's performance and shareholder obligations.

Cumulative distributions for the fiscal year up to May 31, 2025, show a total distribution amount of $0.4350 per share, indicating a consistent approach to returns despite shifting market dynamics. The breakdown is essential as it defines what shareholders may consider as income versus potential capital returns.

Tax Implications

Shareholders should be aware that a return of capital distribution does not trigger a tax liability, which stands out as a critical component in understanding how these distributions affect individual tax obligations. Investors are reminded that a return of capital reduces the tax basis in their shares and should not be misconstrued as yield or income derived from the Fund’s operations.

At the end of each calendar year, the finalized tax information for these distributions will be provided in the Form 1099-DIV. This formal documentation grants shareholders accurate records demonstrating how to report these distributions for federal income tax purposes.

Historical Performance Indicators

As shareholders evaluate the investments in Cohen & Steers, they should observe performance metrics that encapsulate the Fund’s activity over time:

• - Year-to-date Cumulative Total Return (January 1, 2025 - April 30, 2025): 0.18%
• - Cumulative Distribution Rate (Since January 1, 2025): 3.73%
• - Average Annual Total Return (over five years): 11.45%
• - Current Annualized Distribution Rate: 8.96%

Despite market fluctuations, these performance indicators reflect the health of the Fund and utilize benchmark calculations such as the net asset value (NAV) to inform shareholders. Note that while NAV showcases the Fund's comparative performance, it is distinct from the actual market value of individual investments.

Final Thoughts

In conclusion, Cohen & Steers Closed-End Opportunity Fund, Inc. presents its shareholders with significant insights into distribution sources while encouraging a well-informed approach to investment decisions. Shareholders are advised to keep an eye on the ongoing performance, distribution changes, and any factors that may affect their investments in the future. As investing in funds entails various risks and rewards, an understanding of these elements can help navigate investors toward informed financial strategies moving forward.

For comprehensive details, shareholders are urged to visit the Fund's official site at cohenandsteers.com or consult their financial advisors regarding implications on personal financial planning. Staying informed facilitates a more secure investment journey within evolving markets.