Cohen & Steers Fund Announces Key Distribution Details for Shareholders Ahead of July 2024 Payout

Cohen & Steers Closed-End Opportunity Fund, Inc. (FOF) has released detailed information regarding its upcoming distributions to shareholders, specifically for the payment scheduled on July 31, 2024. This notification is crucial for investors as it outlines the sources of the distributions and includes cumulative figures for the fiscal year. The Fund has adopted a managed distribution policy that allows for regular monthly payments to shareholders while aiming to enhance long-term returns by managing capital gains more effectively throughout the year.

The latest distribution breaks down the expected payments, revealing that a significant portion will be classified as a return of capital, which means it is paid from the Fund’s assets rather than its net investment income or realized capital gains. Specifically, of the total current distribution of $0.0870 per share, approximately 62.64% or $0.0545 is return of capital. This means that the distributions shareholders are receiving may reflect a portion of their original investment rather than purely investment returns. It is important for shareholders to understand how this impacts their tax obligations as a return of capital generally reduces their tax basis in the shares.

This communication is indicative of the Fund’s intent to maintain a steady distribution strategy even if the underlying performance of its investments may lead to fluctuations in the amount distributed over time. Investors should be vigilant as management reserves the right to amend or suspend the distribution policy, which might affect market prices and expected gains. Shareholders are encouraged to review ongoing updates on the Fund’s performance metrics and consult their financial advisors to understand the implications fully, especially as year-end tax reporting will be encapsulated in the forthcoming Form 1099-DIV sent to them.