Sprott Focus Trust, Inc. (Nasdaq-FUND) Declares Second Quarter Common Stock Distribution of $0.1160 Per Share

Rhea-AI Summary

Sprott Focus Trust (Nasdaq: FUND) announced a quarterly distribution of $0.1160 per share, payable on June 25, 2021, to shareholders of record as of June 14, 2021. This distribution can be received in cash or through additional shares at the election of shareholders. The fund maintains a policy of quarterly distributions set at an annual rate of 6% based on the rolling average of the previous four quarters' net asset values (NAV). The distribution is estimated to consist of net investment income, short-term and long-term gains, and return of capital.

Positive

• Quarterly distribution of $0.1160 per share confirms ongoing commitment to returning value to shareholders.
• Estimated annual distribution rate of 6% enhances appeal to income-focused investors.
• The Fund has demonstrated a 13.84% average annual total return over the past five years.

Negative

• Current distribution is solely based on estimates and may vary from actual performance.
• The policy of distributions is subject to change at the discretion of the Fund's Board of Directors.

TORONTO, June 02, 2021 (GLOBE NEWSWIRE) -- Sprott Focus Trust, Inc. (Nasdaq-FUND) (the “Fund” or “FUND”) has declared a quarterly distribution of $0.1160 per share on its Common Stock. The distribution, optionally payable in additional shares of Common Stock or in cash by specific stockholder election, is to be paid on June 25, 2021 to stockholders of record at the close of business on June 14, 2021 (ex-dividend on June 11, 2021). The price of shares issued for reinvestment will be determined on June 18, 2021.

The Fund currently has adopted a Distribution Policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of 6% of the rolling average of the prior four calendar quarter-end net asset values (“NAVs”), with the fourth quarter distribution being the greater of 1.50% of the rolling average or the minimum distribution required by IRS regulations. The policy, including the annual rate, is subject to change at the discretion of the Fund’s Board of Directors.

The Fund’s estimated sources of the distribution to be paid on June 25, 2021 and for 2021 year-to-date are as follows:

Estimated Allocations as of May 31, 2021

	Distribution Per Share	Net Investment Income	Net Realized Short-Term Gains	Net Realized Long-Term Gains	Return of Capital
FUND	$0.1160	$ 0.0320 (28%)	$ 0.0117 (10%)	$ 0.0723 (62%)	$ 0.0000 (0%)

Estimated Allocations for 2021 through May 31, 2021

	Distribution Per Share	Net Investment Income	Net Realized Short-Term Gains	Net Realized Long-Term Gains	Return of Capital
FUND	$0.2204	$ 0.0607 (28%)	$ 0.0223 (10%)	$ 0.1374 (62%)	$ 0.0000 (0%)

You should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution or from the terms of the Fund’s Distribution Policy. The amounts and sources of distributions reported herein 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 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.

Fund Performance and Distribution Rate Information

	Average Annual Total Return (in relation to NAV for the 5-year period ending on 5/31/2021)1	Annualized Current Distribution Rate (expressed as a percentage of NAV as of 5/31/2021)2	Cumulative total return (in relation to NAV for the fiscal year through 5/31/2021)3	Cumulative fiscal year Distribution Rate (as a percentage of NAV as of 5/31/2021)4
FUND	13.84%	4.86%	19.73%	2.31%

^{1 Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five year period ended May 31, 2021. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2 The annualized Current Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV as of May 31, 2021.
3 Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2020 to May 31, 2021, assuming reinvestment of distributions paid.
4 The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2021 to May 31, 2021), as a percentage of the Fund’s NAV as of May 31, 2021.}

About Sprott Focus Trust, Inc.

Sprott Focus Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the Nasdaq Global Select Market. The Fund’s investment goal is long-term capital growth, which it seeks by normally investing at least 65% of its assets in equity securities.

For further information on the Fund, please visit our web site at: www.sprottfocustrust.com. An investor should consider investment objectives, risks, charges and expenses carefully before investing. The Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. The Fund trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker.

Contact:
Glen Williams
(416) 943-4394

FAQ

When will the new distribution for Sprott Focus Trust (FUND) be paid?

The new distribution of $0.1160 per share will be paid on June 25, 2021, to shareholders of record as of June 14, 2021.

What is the annual distribution rate for Sprott Focus Trust (NASDAQ: FUND)?

Sprott Focus Trust currently has an annual distribution rate of 6% based on the rolling average of the prior four calendar quarter-end net asset values.

How is the distribution for Sprott Focus Trust allocated?

The distribution allocation includes net investment income, net realized short-term gains, net realized long-term gains, and return of capital.

What is the average annual total return for Sprott Focus Trust (FUND)?

The average annual total return for Sprott Focus Trust is 13.84% for the five-year period ending May 31, 2021.

Can shareholders choose how to receive the distribution from Sprott Focus Trust (FUND)?

Yes, shareholders can elect to receive their distribution in cash or as additional shares of common stock.