NEW YORK, June 28, 2024 /PRNewswire/ — Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF), hereinafter referred to as the ‘Fund,’ has issued a press release to inform shareholders about the sources of the distribution being paid on June 28, 2024. The notification pertains to the requirements under Section 19(a) of the Investment Company Act of 1940. This update is crucial for shareholders to understand the nature of the distributions they are receiving, as it impacts their financial planning and tax considerations.
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The distribution details provided in the release will shed light on whether the amounts distributed are derived from net investment income, capital gains, or a return of capital. By disclosing this information, the Fund ensures transparency and regulatory compliance, thereby upholding the highest standards of fiduciary responsibility to its investors. It’s important for shareholders to note that Section 19(a) of the Investment Company Act mandates funds to disclose the sources of distributions when they are composed of various components beyond net investment income.
Cohen & Steers Infrastructure Fund, Inc. is a well-known closed-end investment management company that primarily focuses on investing in infrastructure assets. These assets span across multiple sectors such as utilities, transportation, energy, and communications. The Fund seeks to deliver a stable income stream while also providing potential for capital appreciation to its shareholders. By focusing on infrastructure, the Fund participates in industries known for their essential role in the economy and stable cash flows.
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Shareholders receiving the June 28, 2024 distribution should pay close attention to the breakdown provided by the Fund. The sources of the distribution, as specified in the Section 19(a) notice, may include net investment income, which refers to earnings from dividends and interest on investments after expenses. It can also comprise long-term or short-term capital gains realized from the sale of securities, or a return of capital, which essentially is a portion of the investor’s original investment being returned. Understanding these components is essential for accurate tax reporting and for assessing the Fund’s performance.
For investors, it is valuable to comprehend the implications of a return of capital. While it may provide immediate cash payouts, it also lowers the average cost basis of the Fund shares. As a result, this could lead to higher taxable gains in the future when the shares are sold. Therefore, a detailed review of the Section 19(a) notice enables investors to make informed decisions regarding the sustainability and quality of their income from the Fund.
The press release emphasizes that the distribution sources are estimated and may differ from the final amounts reported at the year-end. Therefore, shareholders are advised to consult with their tax advisors or financial professionals to interpret the implications accurately. The final tax character of the Fund’s distributions will be reported on Form 1099-DIV, which is issued after the conclusion of the calendar year.
Cohen & Steers, Inc., the investment manager of the Fund, reiterates its commitment to investor education and transparency. They aim to provide continuous updates and detailed reports to help investors navigate the complexities of their investment portfolios. By doing so, they reinforce trust and confidence, ensuring that shareholders receive comprehensive information to make well-informed financial decisions.
In summary, the Cohen & Steers Infrastructure Fund, Inc.’s notification under Section 19(a) serves as an important communication tool. It clarifies the sources of the June 28, 2024, distribution, helping shareholders understand the nature of their income. As the financial landscape continues to evolve, such transparency initiatives play a critical role in maintaining investor trust and ensuring regulatory compliance.
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