The Herzfeld Caribbean Basin Fund, Inc. Announces Cash Distribution
The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a cash distribution of $0.2325 per share, to be paid on January 13, 2025, to stockholders of record as of December 31, 2024. This distribution reflects 9.69% of the Fund's market price and 7.22% of its net asset value as of December 19, 2024.
The distribution is part of the Fund's managed distribution policy, which aims to maintain an annual rate of 15% of the Fund's net asset value. The Board recently modified the policy to allow for quarterly, semi-annual, or annual distribution periods. The current distribution is expected to consist entirely of return of capital, which may affect the Fund's total assets and expense ratio.
Il Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) ha annunciato una distribuzione in contante di 0,2325 dollari per azione, che verrà pagata il 13 gennaio 2025, agli azionisti registrati al 31 dicembre 2024. Questa distribuzione riflette il 9,69% del prezzo di mercato del Fondo e il 7,22% del suo valore patrimoniale netto al 19 dicembre 2024.
La distribuzione fa parte della politica di distribuzione gestita del Fondo, che mira a mantenere un tasso annuo del 15% del valore patrimoniale netto del Fondo. Il Consiglio ha recentemente modificato la politica per consentire periodi di distribuzione trimestrali, semestrali o annuali. L'attuale distribuzione è prevista per essere interamente composta da restituzione di capitale, il che può influenzare il totale degli attivi del Fondo e il rapporto spese.
El Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) ha anunciado una distribución en efectivo de $0.2325 por acción, que se pagará el 13 de enero de 2025, a los accionistas registrados al 31 de diciembre de 2024. Esta distribución refleja el 9.69% del precio de mercado del Fondo y el 7.22% de su valor neto de activos al 19 de diciembre de 2024.
La distribución es parte de la política de distribución gestionada del Fondo, que tiene como objetivo mantener una tasa anual del 15% del valor neto de activos del Fondo. El Consejo ha modificado recientemente la política para permitir períodos de distribución trimestrales, semestrales o anuales. Se espera que la distribución actual consista enteramente en un retorno de capital, lo que puede afectar los activos totales del Fondo y el índice de gastos.
헤르츠펠드 카리브해 분지 펀드(NASDAQ: CUBA)는 주당 $0.2325의 현금 배당금을 발표하였으며, 이는 2025년 1월 13일에 2024년 12월 31일 기준 주주에게 지급될 예정입니다. 이번 배당금은 펀드의 시장 가격의 9.69%와 2024년 12월 19일 기준 순자산 가치의 7.22%에 해당합니다.
이번 배당금은 펀드의 관리 배당 정책의 일환으로, 펀드의 순자산 가치를 기준으로 연 15%의 비율을 유지하는 것을 목표로 하고 있습니다. 이사회는 최근 분기별, 반기별 또는 연간 배당 기간을 허용하도록 정책을 수정했습니다. 현재 배당금은 전액 자본 환급으로 구성될 것으로 예상되며, 이는 펀드의 총 자산과 비용 비율에 영향을 미칠 수 있습니다.
Le Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) a annoncé une distributions en espèces de 0,2325 USD par action, qui sera versée le 13 janvier 2025, aux actionnaires inscrits au 31 décembre 2024. Cette distribution représente 9,69% du prix du marché du Fonds et 7,22% de sa valeur nette d'actif au 19 décembre 2024.
La distribution fait partie de la politique de distribution gérée du Fonds, qui vise à maintenir un taux annuel de 15% de la valeur nette d'actif du Fonds. Le Conseil a récemment modifié la politique pour permettre des périodes de distribution trimestrielles, semestrielles ou annuelles. La distribution actuelle devrait être entièrement composée de retour de capital, ce qui peut affecter les actifs totaux du Fonds et le ratio de dépenses.
Der Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) hat eine Barausschüttung von 0,2325 USD pro Aktie angekündigt, die am 13. Januar 2025 an die Aktionäre ausgezahlt wird, die am 31. Dezember 2024 im Register stehen. Diese Ausschüttung entspricht 9,69% des Marktpreises des Fonds und 7,22% des Nettovermögens zum 19. Dezember 2024.
Die Ausschüttung ist Teil der verwalteten Ausschüttungspolitik des Fonds, die darauf abzielt, eine jährliche Rate von 15% des Nettovermögens des Fonds aufrechtzuerhalten. Der Vorstand hat die Politik kürzlich geändert, um vierteljährliche, halbjährliche oder jährliche Ausschüttungszeiträume zu ermöglichen. Die aktuelle Ausschüttung wird voraussichtlich vollständig aus Kapitalrückzahlungen bestehen, was sich auf die Gesamtaktiva des Fonds und die Kostenquote auswirken kann.
- Distribution yield of 9.69% based on market price
- Maintained 15% annual distribution rate policy
- 100% of distribution consists of return of capital, not from earnings or capital gains
- Distribution may increase Fund's expense ratio due to decreasing total assets
Insights
The Herzfeld Caribbean Basin Fund has declared a significant
The fund's modified distribution policy, maintaining a
The market implications are mixed - while high distribution rates typically attract yield-seeking investors, the quality of these distributions (return of capital vs. earned income) may impact long-term sustainability and fund performance. Investors should carefully consider that these distributions are not indicative of the fund's actual earnings power or investment success.
MIAMI BEACH, Fla., Dec. 20, 2024 (GLOBE NEWSWIRE) -- The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) today announced that the Fund will pay a cash distribution pursuant to the Fund’s managed distribution policy (the “Policy”).
Distribution in Cash:
The Fund has announced a distribution to be paid as follows:
| Declaration Date | Ex-Date | Record Date | Payment Date | Per Share | |
| 12/20/24 | 12/31/2024 | 12/31/2024 | 01/13/2025 | $ | 0.2325 |
The distribution for stockholders will be paid in all cash.
The
Details regarding the Managed Distribution Policy:
Under the Policy, the Fund will distribute all available investment income to its stockholders, consistent with its investment objective and as required by the Internal Revenue Code of 1986, as amended (the “Code”). The amount distributed per share is subject to change at the discretion of the Board. If sufficient investment income is not available, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain its managed distribution level. The Fund is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act. Please note that for stockholders enrolled in the Fund’s Dividend Reinvestment Plan (“DRIP”), the distribution will be reinvested in additional shares of the Fund as described in the DRIP.
The Fund expects that distributions under the Policy will exceed investment income and available capital gains and thus expects that distributions under the Policy will likely include returns of capital for the foreseeable future. A return of capital may occur, for example, when some or all of a stockholder’s investment is paid back to the stockholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Furthermore, a return of capital distribution is not a guarantee of future distributions or yield. Any such returns of capital will decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to maintain the level of distributions called for under its Policy, the Fund may have to sell portfolio securities at a less than opportune time.
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized capital gains and return of capital. All amounts are expressed per common share.
| Current Distribution | % Breakdown of the Current Distribution | Total Cumulative Distributions for the Fiscal Year to Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date | |||
| Net Investment Income | ||||||
| Net Realized Short- Term Capital Gains | ||||||
| Net Realized Long- Term Capital Gains | ||||||
| Return of Capital | ||||||
| Total (per common share) | ||||||
The primary purpose of the Policy is to provide stockholders with a constant, but not guaranteed, fixed minimum rate of distribution (currently set at the annual rate of
The amount distributed per share is subject to change at the discretion of the Board. The Policy is subject to ongoing review by the Board to determine whether it should be continued, modified or terminated. The Board may amend the terms of the Policy, suspend the Policy, or terminate the Policy at any time without prior notice to the Fund’s stockholders if it deems such actions to be in the best interest of the Fund or its stockholders. The amendment or termination of the Policy could have an adverse effect on the market price of the Fund's shares. On May 9, 2024, the Board approved certain modifications to the Policy and extended the Policy through June 30, 2025.
With each distribution that does not consist solely of net investment income, the Fund will issue a notice to stockholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to stockholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send stockholders a Form 1099-DIV for the respective calendar year that will tell them how to report these distributions for federal income tax purposes. Stockholders should consult their tax advisor for proper tax treatment of the Fund’s distributions.
Under the Policy, the Fund will distribute all available investment income to its stockholders, consistent with its investment objective and as required by the Internal Revenue Code of 1986, as amended (the “Code”). The amount distributed per share is subject to change at the discretion of the Fund’s Board of Directors (“Board”). If sufficient investment income is not available, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain its managed distribution level. The Fund is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act.
Future distributions by the Fund may be made in cash or using a combination of shares of common stock and cash, as shall be determined from time to time by the Board.
About Thomas J. Herzfeld Advisors, Inc.
Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds. The Firm also specializes in investment in the Caribbean Basin. The HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves as the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. a publicly traded closed-end fund (NASDAQ: CUBA).
More information about the advisor can be found at www.herzfeld.com.
Past performance is no guarantee of future performance. An investment in the 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. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.
Forward-Looking Statements
This press release, and other statements that TJHA or the Fund may make regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s beliefs that the cash and stock distribution will allow the Fund to strengthen its balance sheet and to be in a position to capitalize on potential future investment opportunities, when there can be no assurance either will occur; the tax consequences of the distributions to stockholders; and other factors may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions; and (12) the effects of an epidemic, pandemic or public health emergency, including without limitation, COVID-19. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.
Contact:
Tom Morgan
Chief Compliance Officer
Thomas J. Herzfeld Advisors, Inc.
1-305-777-1660
FAQ
What is the amount of CUBA's latest cash distribution per share?
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