DoubleLine Opportunistic Credit Fund Declares January 2024 Distribution
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Insights
The announcement by the DoubleLine Opportunistic Credit Fund (DBL) regarding its monthly distribution of $0.11 per share is a significant piece of information for current and potential investors. This distribution rate is reflective of the fund's performance and its ability to generate income for its shareholders. Investors typically look at distribution yields as a key indicator of a fund's performance, especially in the fixed-income category where this fund operates.
From a financial analysis perspective, the sustainability of these distributions is paramount. Factors such as the fund's underlying asset performance, interest rate environment and the credit quality of its holdings contribute to this sustainability. If the fund's assets are performing well and generating sufficient income, this bodes well for future distributions. However, if the fund's income is supplemented by return of capital, it may signal that the fund is not generating enough income from its investments, which could be a concern for long-term viability.
For shareholders, the tax implications of these distributions are an important consideration. The fund's notice indicates that the distributions could be composed of ordinary income, long-term capital gains, or return of capital, each with different tax treatments. Ordinary income is taxed at the shareholder's income tax rate, while long-term capital gains have a lower tax rate. A return of capital is not taxed immediately but reduces the shareholder's cost basis in the fund, potentially increasing the capital gains tax when shares are sold.
It's crucial for shareholders to understand the tax characteristics of these distributions, as they impact after-tax returns. The fund's commitment to providing a Form 1099-DIV in early 2025 will aid shareholders in accurately reporting their taxes and planning their investment strategy accordingly. Tax efficiency is an often-overlooked aspect of investment returns, but it can significantly affect an investor's real rate of return.
For the broader market and competitors, the declared distribution by DBL provides insight into the competitive landscape of income-generating funds. It allows for comparison against peer funds in terms of yield and distribution consistency. A fund that consistently provides competitive distributions can attract more investors, which can lead to an increase in the fund's net asset value (NAV) through additional capital inflows.
Moreover, the timing of the distribution and the declaration of the ex-dividend date are critical for investors who are planning to buy or sell shares. It influences investment decisions and market liquidity around those dates. The market research perspective underscores the importance of these announcements in investor decision-making and market dynamics.
January 2024 | |
Declaration | Tuesday, Jan. 2, 2024 |
Ex-Dividend | Wednesday, Jan. 17, 2024 |
Record | Thursday, Jan. 18, 2024 |
Payment | Wednesday, Jan. 31, 2024 |
This news release is not for tax reporting purposes. The release has been issued to announce the amount and timing of the distributions declared by the Board of Trustees. There is a possibility that distributions may include ordinary income, long-term capital gains or return of capital. The amount of distributable income and the tax characteristics of the distributions are determined at the end of the taxable year. In early 2025, the Fund will send shareholders a Form 1099-DIV specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder's tax return.
About DoubleLine Opportunistic Credit Fund
The DoubleLine Opportunistic Credit Fund (the "Fund") is a diversified, closed-end management investment company. The Fund's investment objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation. There is no guarantee that the Fund will achieve its investment objective. Investing in the Fund involves the risk of principal loss.
About DoubleLine Capital LP
DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by email at info@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
To read about the DoubleLine Opportunistic Credit Fund, please access the Annual Report at www.doubleline.com or call 877-DLINE11 (877-354-6311) to receive a copy. Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. An investment in the Fund should not constitute a complete investment program.
This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.
Fund investing involves risk. Principal loss is possible.
Shares of closed-end investment companies frequently trade at a discount to their net asset value, which may increase investors' risk of loss. This risk may be greater for investors expecting to sell their shares in a relatively short period after the completion of the public offering. There are risks associated with investment in the fund.
Investments in debt securities typically decline in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Past performance is no guarantee of future results. The fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities. Investment strategies may not achieve the desired results due to implementation lag, other timing factors, portfolio management decisions-making, economic or market conditions or other unanticipated factors. In addition, the Fund may invest in other asset classes and investments such as, among others, REITs, credit default swaps, short sales, derivatives and smaller companies which include additional risks. The DoubleLine Opportunistic Credit Fund (the "Fund") is a diversified, closed-end management investment company.
This material may include statements that constitute "forward-looking statements" under the
Distributions include all distribution payments regardless of source and may include net income, capital gains, and/or return of capital (ROC). ROC should not be confused with yield or income. A Fund's Section 19a-1 Notice, if applicable, contains additional distribution composition information and may be obtained by visiting www.doubleline.com. Final determination of a distribution's tax character will be made on Form 1099 DIV and sent to shareholders. On a tax basis, as of Dec. 29, 2023, the estimated component of the cumulative distribution for the fiscal year to date would include an estimated return of capital of
Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.
Foreside Funds Services, LLC provides marketing review services for DoubleLine Capital LP.
©2024 DoubleLine Capital LP.
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