Cornerstone Funds Announce Continuing Monthly Distributions and Reset Distribution Amounts for 2025
Cornerstone Strategic Value Fund (CLM) and Cornerstone Total Return Fund announced their monthly distributions for early 2025. CLM will distribute $0.1224 per share monthly, while CRF will distribute $0.1168 per share. The distribution rates remain at 21% of net asset value for both funds.
These distributions are not tied to investment income or capital gains and may include return of capital. Stockholders can reinvest distributions through dividend reinvestment plans. Given current market conditions, a portion of 2024 distributions is expected to consist of return of capital.
Cornerstone Strategic Value Fund (CLM) e Cornerstone Total Return Fund hanno annunciato le loro distribuzioni mensili per l'inizio del 2025. CLM distribuirà $0.1224 per azione mensilmente, mentre CRF distribuirà $0.1168 per azione. I tassi di distribuzione rimangono al 21% del valore netto degli attivi per entrambi i fondi.
Queste distribuzioni non sono collegate a redditi da investimento o guadagni di capitale e potrebbero includere il rimborso di capitale. Gli azionisti possono reinvestire le distribuzioni tramite piani di reinvestimento dei dividendi. Considerate le attuali condizioni di mercato, si prevede che una parte delle distribuzioni del 2024 consisterà in un rimborso di capitale.
Cornerstone Strategic Value Fund (CLM) y Cornerstone Total Return Fund anunciaron sus distribuciones mensuales para principios de 2025. CLM distribuirá $0.1224 por acción mensualmente, mientras que CRF distribuirá $0.1168 por acción. Las tasas de distribución se mantienen en el 21% del valor neto de los activos para ambos fondos.
Estas distribuciones no están vinculadas a ingresos por inversiones o ganancias de capital y pueden incluir devolución de capital. Los accionistas pueden reinvertir las distribuciones a través de planes de reinversión de dividendos. Dadas las condiciones actuales del mercado, se espera que una parte de las distribuciones de 2024 consista en devolución de capital.
Cornerstone Strategic Value Fund (CLM)와 Cornerstone Total Return Fund가 2025년 초 월별 배당금 발표했습니다. CLM은 주당 매월 $0.1224를 분배하며, CRF는 주당 $0.1168을 분배합니다. 두 펀드의 분배율은 순자산가치의 21%로 유지됩니다.
이 분배는 투자 수익이나 자본 이익에 연결되어 있지 않으며 자본 환급이 포함될 수 있습니다. 주주들은 배당금을 배당 재투자 계획을 통해 재투자할 수 있습니다. 현재 시장 상황을 고려할 때, 2024년 분배의 일부는 자본 환급으로 구성될 것으로 예상됩니다.
Cornerstone Strategic Value Fund (CLM) et Cornerstone Total Return Fund ont annoncé leurs distributions mensuelles pour début 2025. CLM distribuera $0.1224 par action chaque mois, tandis que CRF distribuera $0.1168 par action. Les taux de distribution restent à 21 % de la valeur nette des actifs pour les deux fonds.
Ces distributions ne sont pas liées aux revenus d'investissement ou aux gains en capital et peuvent inclure un retour de capital. Les actionnaires peuvent réinvestir les distributions via des plans de réinvestissement de dividendes. Compte tenu des conditions actuelles du marché, une partie des distributions de 2024 devrait consister en retour de capital.
Cornerstone Strategic Value Fund (CLM) und der Cornerstone Total Return Fund haben ihre monatlichen Ausschüttungen für Anfang 2025 bekannt gegeben. CLM wird monatlich $0.1224 pro Aktie ausschütten, während CRF $0.1168 pro Aktie ausschütten wird. Die Ausschüttungsquoten bleiben bei 21% des Nettowertes der Vermögenswerte für beide Fonds.
Diese Ausschüttungen sind nicht an Einkommen aus Investitionen oder Kapitalgewinne gebunden und können die Rückzahlung von Kapital umfassen. Die Aktionäre können die Ausschüttungen über Dividenden-Reinvestitionspläne reinvestieren. Angesichts der aktuellen Marktbedingungen wird erwartet, dass ein Teil der Ausschüttungen 2024 aus der Rückzahlung von Kapital bestehen wird.
- Maintained stable 21% distribution rate for 2025
- Offers dividend reinvestment plan option for stockholders
- Board authorized share repurchase program at discounts to NAV
- Distributions may include significant return of capital, reducing stockholder's cost basis
- High distribution rate may deplete Fund assets if investment returns don't exceed distributions
- Fund expenses are doubled due to investing in other closed-end funds (layered fees)
Insights
This monthly distribution announcement for CLM and CRF reveals important details about their 2025 distribution policy. The funds will maintain their
A critical point for investors is that these distributions aren't purely from investment returns - they likely include significant return of capital (ROC). This means investors are partially receiving their own investment back, not just earnings. While this provides regular cash flow, it can deplete the fund's assets over time if investment returns don't exceed distribution rates.
The high distribution rate of
NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) (CUSIP: 21924B302) and Cornerstone Total Return Fund, Inc. (NYSE American: CRF) (CUSIP: 21924U300), (individually the “Fund” or, collectively, the “Funds”), each a closed-end management investment company, announced that in keeping with each Fund’s previously adopted monthly distribution policy, each Fund is declaring the following distributions, which have been reset for the calendar year 2025.
| Record Date | Payable Date | Per Share | ||
| CLM | January 15, 2025 | January 31, 2025 | ||
| CLM | February 14, 2025 | February 28, 2025 | ||
| CLM | March 14, 2025 | March 31, 2025 | ||
| CRF | January 15, 2025 | January 31, 2025 | ||
| CRF | February 14, 2025 | February 28, 2025 | ||
| CRF | March 14, 2025 | March 31, 2025 | ||
Each Fund’s distribution policy provides for the resetting of the monthly distribution amount per share (“Distribution Amount”) annually, based on each Fund’s net asset value on the last business day of October and the annualized distribution percentage approved by the respective Board of Directors (individually the “Board”, or collectively, the “Boards”). Each Board previously announced the distribution percentage for the calendar year 2025 would remain unchanged from the current year at
Each Board believes each Fund’s distribution policy maintains a stable, high rate of distribution. These distributions are not tied to each Fund’s investment income or capital gains and do not represent yield or investment return on each Fund’s portfolio. The Distribution Amount from one calendar year to the next will increase or decrease based on the change in each Fund’s net asset value. The terms of each distribution policy are reviewed and approved at least annually by each Fund’s Board and may be modified at their discretion for the benefit of each Fund and its stockholders.
Each Fund’s Board remains convinced its stockholders are well served by a policy of regular distributions which increase liquidity and provide flexibility to individual stockholders in managing their investment in each Fund. Stockholders have the option of reinvesting these distributions in additional shares of their Fund or receiving them in cash. Stockholders may consider reinvesting their regular distributions through their Fund’s dividend reinvestment plan, which may at times provide additional benefit to stockholders who participate in their Fund’s plan. Stockholders should carefully read the description of the dividend reinvestment plan contained in each Fund's report to stockholders.
Under each Fund’s distribution policy, each Fund may distribute to stockholders each month a minimum fixed percentage per year of the net asset value or market price per share of its common stock or at least a minimum fixed dollar amount per year. In determining to adopt this policy, the Board of each Fund sought to make regular monthly distributions throughout the year. Under each policy, each Fund’s distributions will consist either of (1) earnings, (2) capital gains, or (3) return-of-capital, or some combination of one or more of these categories. A return-of-capital is the return of a portion of the stockholder’s original investment.
Given the current economic environment and the composition of each Fund’s portfolio, a portion of each Fund’s distributions made during the current calendar year is expected to consist of a return of the stockholder’s capital. Accordingly, these distributions should not be confused with yield or investment return on each Fund’s portfolio. The final composition of the distributions for 2024 cannot be determined until after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.
In any given year, there can be no guarantee each Fund’s investment returns will exceed the amount of the net distributions. To the extent the amount of distributions paid to stockholders in cash exceeds the total net investment returns of the Fund, the assets of a Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of a Fund will increase. Distributions designated as return-of-capital are not taxed as ordinary income dividends and are referred to as tax-free dividends or nontaxable distributions. A return-of-capital distribution reduces the cost basis of a stockholder’s shares in the Fund. Stockholders can expect to receive tax-reporting information for 2024 distributions by the middle of February 2025 indicating the exact composition per share of the distributions received during the calendar year. Stockholders should consult their tax advisor for proper tax treatment of each Fund’s distributions.
Volatility in the world economy helps to create what Cornerstone Advisors, LLC (the “Adviser”) views as significant opportunities through investments in closed-end funds. In addition to holding closed-end funds which invest substantially all of their assets in equity securities, the Adviser may also choose to take advantage of situations in funds which invest in fixed income or other investment categories. Closed-end funds, with their broadly diversified holdings, enhance diversification within each Fund’s portfolio.
Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level is reduced by the operating expenses and fees of such other investment companies, including advisory fees. To the extent each Fund invests its assets in investment company securities, those assets will be subject to the risks of the purchased investment company's portfolio securities, and a stockholder in the Fund will bear not only their proportionate share of the expenses of a Fund, but also, indirectly the expenses of the purchased investment company. There can be no assurance the investment objective of any investment company in which a Fund invests will be achieved.
Under the managed distribution policy, each Fund makes monthly distributions to stockholders at a rate which may include periodic distributions of its net income and net capital gains (“Net Earnings”), or from return-of-capital. If, for any fiscal year where total cash distributions exceeded Net Earnings (the "Excess"), the Excess would decrease each Fund's total assets and, as a result, would have the likely effect of increasing each Fund's expense ratio. There is a risk the total Net Earnings from each Fund’s portfolio would not be great enough to offset the amount of cash distributions paid to Fund stockholders. If this were to occur, a Fund’s assets would be depleted, and there is no guarantee a Fund would be able to replace the assets. In addition, in order to make such distributions, a Fund may have to sell a portion of its investment portfolio at a time when independent investment judgment might not dictate such action. Furthermore, such assets used to make distributions will not be available for investment pursuant to the Fund’s investment objective.
Each Fund’s Board has previously approved a share repurchase program. The share repurchase program authorizes management to make open market purchases, from time to time. Such purchases may be made opportunistically at certain discounts to net asset value per share when management reasonably believes such repurchases may enhance stockholder value. There is no assurance each Fund will purchase any shares or the share repurchase program will have an impact on the liquidity or value of the respective Fund or the Fund’s shares. To the extent each Fund engages in share repurchase activity, such activity will be disclosed in each Fund’s stockholder reports for the relevant fiscal period.
Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the NYSE American LLC under the trading symbols “CLM” and “CRF”, respectively. For more information regarding each Fund please visit www.cornerstonestrategicvaluefund.com and www.cornerstonetotalreturnfund.com.
Past performance is no guarantee of future performance. An investment in a Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. A stockholder should carefully consider a Fund’s investment objective, risks, charges and expenses. Please read a Fund’s disclosure documents before investing.
In addition to historical information, this release contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on a Fund’s investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in each Fund’s disclosure documents, filed with the U.S. Securities and Exchange Commission, and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. Each Fund has no obligation to update or revise forward-looking statements.
FAQ
What is CLM's monthly distribution amount for early 2025?
What is the distribution percentage rate for CLM in 2025?
When will CLM stockholders receive tax reporting information for 2024 distributions?
Are CLM's distributions guaranteed to come from investment income?
