Stone Harbor Emerging Markets Income Fund
On August 27, 2020, the Stone Harbor Emerging Markets Income Fund (NYSE: EDF) announced a monthly distribution of $0.08 per share for shareholders of record as of August 17, 2020. The Fund operates under a managed distribution policy permitting the use of capital gains for cash distributions. This approach enhances distribution flexibility but may involve a return of capital, which does not reflect the Fund's investment performance and could impact the net asset value per share. Current estimates indicate that 100% of this distribution is a return of capital.
- Monthly distribution of $0.08 per share.
- Managed distribution policy allows for capital gains to bolster cash distributions.
- 100% of the distribution is a return of capital, which may reflect poor investment performance.
- Cumulative total return is negative at (9.67%), indicating losses.
DENVER, Aug. 27, 2020 /PRNewswire/ -- On August 27, 2020, the Stone Harbor Emerging Markets Income Fund (NYSE: EDF) (the "Fund"), a closed-end fund, will pay a monthly distribution on its common stock of
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year-to-date from the sources indicated in the table. In addition, the table shows the percentages of the total distribution amount per share attributable to (i) net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: | ||
Per Share ($) | % | |
Net Investment Income | 0.0000 | |
Net Realized Short-Term Capital Gains | 0.0000 | |
Net Realized Long-Term Capital Gains | 0.0000 | |
Return of Capital or other Capital Source | 0.0800 | |
Total (per common share) | 0.0800 | |
Fiscal Year-to-Date Cumulative | ||
Distributions from1: | ||
Per Share ($) | % | |
Net Investment Income | 0.3879 | |
Net Realized Short-Term Capital Gains | 0.0000 | |
Net Realized Long-Term Capital Gains | 0.0000 | |
Return of Capital or other Capital Source | 0.8021 | |
Total (per common share) | 1.1900 |
Shareholders 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 Fund estimates that it has distributed more than its net income and net realized capital gains, therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'. When distributions exceed total return performance, the difference will reduce the Fund's net asset value per share.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates, may change over time 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 the remainder of its fiscal year and may be subject to changes based on tax regulations. 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.
Presented below are return figures, based on the change in the Fund's Net Asset Value per share ("NAV"), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last day of the month prior to distribution declaration date.
Fund Performance & Distribution Information
Annualized Distribution Rate as a Percentage of NAV^ | |
Cumulative Distribution Rate as a Percentage of NAV* | |
Cumulative Total Return as a Percentage of NAV** | ( |
Average Annual Total Return*** |
^ Based on the Fund's NAV as of July 31, 2020 and the August 27, 2020 distribution.
*Based on the Fund's NAV as of July 31, 2020 and includes distributions through August 27, 2020.
** Cumulative Total Return is the percentage change in the Fund's NAV including distributions paid and assuming reinvestment of these distributions at NAV for the period December 1, 2019 through July 31, 2020.
***Average Annual Total Return represents the compound average of the Annual NAV Total Returns of the Fund for the five year period ending July 31, 2020. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of these distributions at NAV.
While the NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's 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.
The Fund's Board of Trustees reviews the amount of any distributions made pursuant to the Fund's distribution policy and considers the income earned and capital gain realized by the Fund, as well as the Fund's available capital. The Board of Trustees will continue to monitor the Fund's distribution level, taking into consideration, among other things, the Fund's net asset value and market conditions. The Fund's distribution policy is subject to modification, suspension or termination by the Board of Trustees at any time, which could have an adverse effect on the market price of the Fund's shares. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
1 The Fund's fiscal year is December 1 to November 30. Information shown is for the period beginning December 1, 2019.
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SOURCE Stone Harbor
FAQ
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