Cohen & Steers Infrastructure Fund, Inc. (UTF) Notification of Sources of Distribution Under Section 19(a)

Rhea-AI Summary

Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) has announced its July 2024 distribution details and sources. The Fund follows a managed distribution policy to deliver long-term total return potential through regular monthly distributions. Key points:

- July 2024 distribution: $0.1550 per share
- Sources: 11.94% from net investment income, 88.06% from net realized long-term capital gains
- Year-to-date cumulative total return (as of June 30, 2024): 3.09%
- Current annualized distribution rate: 8.22%
- Five-year average annual total return (ending June 30, 2024): 4.55%

The Fund's distributions may include long-term capital gains, short-term capital gains, net investment income, and/or return of capital. Shareholders are advised not to use this information for tax reporting purposes and will receive a Form 1099-DIV for the calendar year.

Positive

• Managed distribution policy aims to deliver long-term total return potential
• Current annualized distribution rate of 8.22%
• Year-to-date cumulative total return of 3.09% (as of June 30, 2024)
• 88.06% of current distribution comes from net realized long-term capital gains

Negative

• Five-year average annual total return of 4.55% is lower than the current annualized distribution rate

Insights

Financial Analyst

This distribution announcement from Cohen & Steers Infrastructure Fund, Inc. (UTF) provides valuable insights into the fund's financial performance and distribution strategy. The fund's managed distribution policy, implemented in 2015, aims to deliver long-term total returns through regular monthly distributions at a fixed rate per share.

Key points to consider:

• The current distribution of $0.1550 per share comprises 11.94% from net investment income and 88.06% from net realized long-term capital gains.
• Year-to-date distributions totaling $1.0850 per share are sourced 42.58% from net investment income and 57.42% from net realized long-term capital gains.
• The fund's year-to-date cumulative total return stands at 3.09%, while its five-year average annual total return is 4.55%.
• The current annualized distribution rate is 8.22% of NAV, which is notably higher than the fund's average annual total return.

This distribution strategy suggests that the fund is prioritizing income generation for shareholders, potentially at the expense of long-term capital appreciation. The high distribution rate relative to total return may indicate that the fund is returning capital to investors, which could impact its long-term growth potential. Investors should carefully consider whether this aligns with their investment goals and risk tolerance.

Tax Expert

The tax implications of UTF's distribution strategy are important for investors to understand. Here are some key considerations:

• The fund's distributions may include various tax components: long-term capital gains, short-term capital gains, net investment income and return of capital.
• For the current distribution, 88.06% is classified as long-term capital gains, which are typically taxed at a lower rate than ordinary income for most investors.
• Year-to-date, 57.42% of distributions have been long-term capital gains, with the remainder classified as net investment income.
• Importantly, there has been no return of capital in the distributions so far this year, which is generally favorable from a tax perspective.

Investors should note that the tax characteristics of distributions can change by year-end and the final tax information will be provided on Form 1099-DIV. The fund's ability to distribute long-term capital gains regularly may be attractive for investors seeking tax-efficient income, but it's essential to consult with a tax professional to understand the specific implications for your situation.

The absence of return of capital in the distributions is a positive sign, as return of capital can reduce an investor's cost basis and potentially lead to higher capital gains taxes upon selling the investment. However, investors should monitor this aspect closely, as it could change in future distributions.

NEW YORK, July 24, 2024 /PRNewswire/ -- This press release provides shareholders of Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) (the "Fund") with information regarding the sources of the distribution to be paid on July 31, 2024 and cumulative distributions paid fiscal year-to-date.

In March 2015, the Fund implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission. The managed distribution policy seeks to deliver the Fund's long-term total return potential through regular monthly distributions declared at a fixed rate per common share. This policy gives the Fund greater flexibility to realize long-term capital gains throughout the year and to distribute those gains on a regular monthly basis to shareholders. The Board of Directors of the Fund may amend, terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund's shares.

The Fund's monthly distributions may include long-term capital gains, short-term capital gains, net investment income and/or return of capital for federal income tax purposes. Return of capital includes distributions paid by the Fund in excess of its net investment income and net realized capital gains and such excess is distributed from the Fund's assets. A return of capital is not taxable; rather, it reduces a shareholder's tax basis in his or her shares of the Fund. In addition, distributions from the Fund's investments in MLPs are attributed to various sources, including net investment income and return of capital. The amount of monthly distributions may vary depending on a number of factors, including changes in portfolio and market conditions.

At the time of each monthly distribution, information will be posted to cohenandsteers.com and mailed to shareholders in a concurrent notice. However, this information may change at the end of the year because the final tax characteristics of the Fund's distributions cannot be determined with certainty until after the end of the calendar year. Final tax characteristics of all of the Fund's distributions will be provided on Form 1099-DIV, which is mailed after the close of the calendar year.

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year-to-date from the sources indicated. All amounts are expressed per common share.

DISTRIBUTION ESTIMATES	July 2024		YEAR-TO-DATE (YTD) July 31, 2024*
Source	Per Share Amount	% of Current Distribution	Per Share Amount	% of 2024 Distributions
Net Investment Income	$0.0185	11.94 %	$0.4620	42.58 %
Net Realized Short-Term Capital Gains	$0.0000	0.00 %	$0.0000	0.00 %
Net Realized Long-Term Capital Gains	$0.1365	88.06 %	$0.6230	57.42 %
Return of Capital (or other Capital Source)	$0.0000	0.00 %	$0.0000	0.00 %
Total Current Distribution	$0.1550	100.00 %	$1.0850	100.00 %

 

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution policy. The amounts and sources of distributions reported in this Notice are only estimates, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The amounts and sources of distributions year-to-date may be subject to additional adjustments.

*THE FUND WILL SEND YOU A FORM 1099-DIV FOR THE CALENDAR YEAR THAT WILL TELL YOU HOW TO REPORT THESE DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.

The Fund's Year-to-date Cumulative Total Return for fiscal year 2024 (January 1, 2024 through June 30, 2024) is set forth below. Shareholders should take note of the relationship between the Year-to-date Cumulative Total Return with the Fund's Cumulative Distribution Rate for 2024. In addition, the Fund's Average Annual Total Return for the five-year period ending June 30, 2024 is set forth below. Shareholders should note the relationship between the Average Annual Total Return with the Fund's Current Annualized Distribution Rate for 2024. The performance and distribution rate information disclosed in the table is based on the Fund's net asset value per share (NAV). The Fund's NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total liabilities, divided by the total number of shares outstanding. While NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's individual investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.

Fund Performance and Distribution Rate Information: 

Year-to-date January 1, 2024 to June 30, 2024
Year-to-date Cumulative Total Return1	3.09 %
Cumulative Distribution Rate2	4.79 %
Five-year period ending June 30, 2024
Average Annual Total Return3	4.55 %
Current Annualized Distribution Rate4	8.22 %

1.	Year-to-date Cumulative Total Return is the percentage change in the Fund's NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions.
2.	Cumulative Distribution Rate for the Fund's current fiscal period (January 1, 2024 through July 31, 2024) measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund's NAV as of June 30, 2024.
3.	Average Annual Total Return represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ending June 30, 2024. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of those distributions.
4.	The Current Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of June 30, 2024.

Investors should consider the investment objectives, risks, charges and expense of the Fund carefully before investing. You can obtain the Fund's most recent periodic reports, when available, and other regulatory filings by contacting your financial advisor or visiting cohenandsteers.com. These reports and other filings can be found on the Securities and Exchange Commission's EDGAR Database. You should read these reports and other filings carefully before investing.

Shareholders should not use the information provided here in preparing their tax returns. Shareholders will receive a Form 1099-DIV for the calendar year indicating how to report Fund distributions for federal income tax purposes.

Website: https://www.cohenandsteers.com
Symbol: (NYSE: CNS)

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

Forward-Looking Statements
This press release and other statements that Cohen & Steers may make may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect the company's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties.

Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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SOURCE Cohen & Steers, Inc.

FAQ

What is the July 2024 distribution amount for Cohen & Steers Infrastructure Fund (UTF)?

The July 2024 distribution for Cohen & Steers Infrastructure Fund (UTF) is $0.1550 per share.

What are the sources of the July 2024 distribution for UTF?

The July 2024 distribution for UTF comes from 11.94% net investment income and 88.06% net realized long-term capital gains.

What is the year-to-date cumulative total return for UTF as of June 30, 2024?

The year-to-date cumulative total return for UTF as of June 30, 2024, is 3.09%.

What is the current annualized distribution rate for UTF?

The current annualized distribution rate for UTF is 8.22%.

What is UTF's five-year average annual total return as of June 30, 2024?

UTF's five-year average annual total return as of June 30, 2024, is 4.55%.