Insights into Cohen & Steers Infrastructure Fund
Cohen & Steers Infrastructure Fund, Inc., traded on the NYSE as UTF, has recently communicated important information to its shareholders regarding the sources of their upcoming distributions. The announcement was made on February 27, 2025, outlining the distribution scheduled for payment on February 28, 2025, along with cumulative distributions for the current fiscal year.
Managed Distribution Policy
In March 2015, the Fund implemented a managed distribution policy sanctioned by the Securities and Exchange Commission (SEC). This strategic approach aims to provide shareholders with a dependable source of income while offering the flexibility to pursue long-term capital gains. The policy facilitates monthly distributions at a fixed rate per common share, enabling the Fund to achieve its long-term total return potential. However, it's important to note that the Board of Directors reserves the right to amend or suspend this policy at any time, which could influence the market value of the Fund's shares significantly.
Breakdown of Distributions
The distribution scheduled for February 2025 has been detailed in terms of its composition:
- - Net Investment Income: 0% (Estimated per share amount: $0.0000)
- - Net Realized Short-Term Capital Gains: 27.54% (Estimated per share amount: $0.0427)
- - Net Realized Long-Term Capital Gains: 72.46% (Estimated per share amount: $0.1123)
- - Return of Capital: 0% (Estimated per share amount: $0.0000)
The total current distribution per share is estimated at $0.1550, which represents 100% of earnings for that period. Cumulatively, the total distributions paid in the fiscal year so far amount to $0.3100 per share, sustaining investor confidence despite market fluctuations.
Understanding Return of Capital
One crucial aspect to understand is the concept of a 'return of capital' which includes any distributions that exceed the Fund's net investment income and net capital gains. Such returns are not considered taxable income for shareholders but instead reduce their investment basis. This structure offers a significant tax advantage and can help optimize returns for investors in the long run.
Impact of Market Conditions
The amount of monthly distributions may fluctuate based on multiple factors, including changes in market conditions and the Fund's portfolio compositions. Consequently, shareholders are advised to keep informed with updates posted on the official Cohen & Steers website, especially as final tax characteristics can only be determined at year-end, following the close of the calendar year.
Performance Metrics
Evaluating the Fund's performance, shareholders should be aware of its Year-to-date Cumulative Total Return, which stands at 1.11% for the period from January 1 to January 31, 2025. This figure is relevant when compared against the Cumulative Distribution Rate of 1.29% during the same timeframe. Additionally, for a broader perspective, the Average Annual Total Return over the five-year period (ending January 31, 2025) is noted at 4.59%, with a Current Annualized Distribution Rate of 7.76%.
Conclusion
For potential investors and existing shareholders, the information provided serves as a valuable insight into the working mechanisms of the Cohen & Steers Infrastructure Fund. Potential investors are encouraged to evaluate their financial objectives, risks, and the cost structure associated with the Fund before considering an investment. Periodic reports and regulatory filings are accessible through the Fund's website or via a financial advisor, ensuring transparency and accessibility for informed decision-making. Given the dynamic nature of investment performance and the potential for changes in strategy, keeping abreast of developments is essential for strategic financial engagement.
For further inquiries and updates, shareholders can refer to
Cohen & Steers official site, where detailed reports and announcements are routinely made accessible to enhance investor relations.