Stone Harbor Emerging Markets Total Income Fund Notification Of Sources Of Distribution

Rhea-AI Summary

On June 25, 2020, Stone Harbor Emerging Markets Total Income Fund (EDI) announced a monthly distribution of $0.08 per share for shareholders of record by June 15, 2020. The fund operates under a managed distribution policy, allowing it to utilize capital gains for distributions. Notably, all of this month's distribution is a return of capital, indicating that the fund has distributed more than its net income and capital gains. The fund's annualized distribution rate stands at 13.75%, while cumulative total return is at (23.22%).

Positive

• Monthly distribution of $0.08 per share.
• Annualized distribution rate at 13.75%.
• Managed distribution policy provides flexibility for capital gains.

Negative

• Total return of (23.22%) indicates significant declines.
• Distribution entirely from return of capital, not net income.

DENVER, June 25, 2020 /PRNewswire/ -- On June 25, 2020, the Stone Harbor Emerging Markets Total Income Fund (NYSE: EDI) (the "Fund"), a closed-end fund, will pay a monthly distribution on its common stock of $0.08 per share to shareholders of record at the close of business on June 15, 2020.  The Fund, acting in accordance with an exemptive order received from the Securities and Exchange Commission and with approval of its Board of Trustees, adopted a managed distribution policy under which the Fund may utilize capital gains, where applicable, as part of regular monthly cash distributions to its shareholders. This policy gives the Fund greater flexibility to realize capital gains and to distribute those gains to shareholders.

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 ($)	%
Net Investment Income	0.0000	0.00%
Net Realized Short-Term Capital Gains	0.0000	0.00%
Net Realized Long-Term Capital Gains	0.0000	0.00%
Return of Capital or other Capital Source	0.0800	100.00%
Total (per common share)	0.0800	100.00%
Fiscal Year-to-Date Cumulative
Distributions from1:
	Per Share ($)	%
Net Investment Income	0.4331	47.31%
Net Realized Short-Term Capital Gains	0.0000	0.00%
Net Realized Long-Term Capital Gains	0.0000	0.00%
Return of Capital or other Capital Source	0.4824	52.69%
Total (per common share)	0.9155	100.00%

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^	13.75%
Cumulative Distribution Rate as a Percentage of NAV*	13.12%
Cumulative Total Return as a Percentage of NAV**	(23.22%)
Average Annual Total Return***	(3.20)%

^ Based on the Fund's NAV as of May 31, 2020 and the June 25, 2020 distribution.

*Based on the Fund's NAV as of May 31, 2020 and includes distributions through June 25, 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 May 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 May 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 Emerging Markets Total Income Fund

FAQ

What is the distribution amount for EDI in June 2020?

The distribution amount for EDI in June 2020 is $0.08 per share.

What percentage of the June 2020 distribution is return of capital for EDI?

100% of the June 2020 distribution for EDI is a return of capital.

What is the annualized distribution rate for EDI?

The annualized distribution rate for EDI is 13.75%.

How does the cumulative total return for EDI compare?

The cumulative total return for EDI is (23.22%) as of the reporting period.

What is the significance of the managed distribution policy for EDI?

The managed distribution policy allows EDI to utilize capital gains as part of its cash distributions, providing greater flexibility.