Cohen & Steers Opportunity Fund Distributions Notification for Shareholders

The Cohen & Steers Closed-End Opportunity Fund, Inc. (NYSE: FOF), which focuses on delivering potential long-term total returns, has issued a press release concerning its upcoming distributions, shining light on the sources for these distributions slated for December 31, 2024. This notice serves as an essential guide to current and prospective shareholders, detailing the financial mechanisms supporting the fund's distribution policy.

Overview of Distribution Policy


In December 2021, the Fund implemented a managed distribution policy, benefitting from an exemptive relief granted by the Securities and Exchange Commission. This strategy allows the Fund to distribute returns to shareholders regularly while offering flexibility to pursue long-term capital gains throughout the fiscal year. The board retains the authority to amend or suspend this policy as required, which could impact the pricing of the Fund's shares.

Breakdown of Current and Historical Distributions


For the current period, the Fund has outlined the anticipated sources of its monthly distributions. Each distribution is composed of several elements, including:
  • - Net Investment Income: For December 2024, the Fund expects to distribute approximately $0.0365 per share, making up around 41.95% of the current distribution.
  • - Return of Capital: The largest portion of the distribution, calculated at $0.0505 or 58.05%, reflects funds exceeding net investment income. It is crucial to understand that a return of capital is not taxable; instead, it adjusts the shareholder's tax basis in their respective shares. Current estimates suggest a total distribution for December 2024 of $0.0870 per share.

Annual Performance Considerations


As we reflect on the Fund's performance for the fiscal year-to-date, it has recorded a cumulative total return of 24.96% through November 30, 2024. Investors should contextualize this performance alongside the cumulative distribution rate recorded at 8.38% for the same period, highlighting a constructive relationship between returns and distributions—a situation beneficial for long-term investors.

In order to keep shareholders informed, information regarding the monthly distributions will be made available through the Fund's website as well as through mailed notices. It is essential for shareholders to remain diligent, as the estimated amounts and sources may experience fluctuations based on market conditions and portfolio modifications.

Understanding Tax Implications


Shareholders should be prudent in terms of tax considerations. While a portion of their distributions may represent a return of capital, it is advisable that investors not rely solely on preliminary distribution information for tax filing purposes. A final Form 1099-DIV will be sent at year-end, clarifying how to report these distributions for federal income tax purposes.

Conclusion


The substantial insights provided in Cohen & Steers’ notification underscore the Fund’s commitment to transparency and shareholder value. Investors are encouraged to familiarize themselves more with how distributions are structured and the financial health of their investments through continued engagement with the Fund's resources. For those interested in thorough investment analysis or seeking the most recent periodic reports, they can access these documents via the Fund's official channels. Stay informed to make empowered investment decisions.

In summary, the Cohen & Steers Closed-End Opportunity Fund continues to navigate its financial landscape proactively while aiming to maximize returns for its shareholders as it approaches the end of the fiscal year.

Topics Financial Services & Investing)

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