Sprott Focus Trust, Inc. (Nasdaq-FUND) Declares Third Quarter Common Stock Distribution of $0.1334 Per Share

Rhea-AI Summary

Sprott Focus Trust, Inc. (Nasdaq-FUND) has declared a quarterly distribution of $0.1334 per share, payable on September 23, 2022, to stockholders of record by September 12, 2022. The Fund follows a Distribution Policy of paying quarterly distributions at an annual rate of 6% based on the rolling average of the prior four calendar quarter-end net asset values (NAVs). The estimated allocation for the distribution includes 76% return of capital. For 2022, the total distribution has reached $0.4082 per share, with a 6.48% annualized current distribution rate.

Positive

• Quarterly distribution of $0.1334 per share, reflecting a 6% annual distribution policy.
• Estimated total distribution for 2022 reaches $0.4082 per share.
• Annualized current distribution rate of 6.48% based on NAV.

Negative

• 76% of the current distribution is characterized as a return of capital, which may concern investors about the sustainability of future distributions.

TORONTO, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Sprott Focus Trust, Inc. (Nasdaq-FUND) (the “Fund” or “FUND”) has declared a quarterly distribution of $0.1334 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 September 23, 2022 to stockholders of record at the close of business on September 12, 2022 (ex-dividend on September 9, 2022). The price of shares issued for reinvestment will be determined on September 16, 2022.

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 September 23, 2022 and for 2022 year-to-date are as follows:

Estimated Allocations as of August 31, 2022

	Distribution Per Share		Net Investment Income	Net Realized Short-Term Gains	Net Realized Long-Term Gains	Return of Capital
FUND	$0.1334		$ 0.0195 (15%)	$ 0.0019 (1%)	$ 0.0107 (8%)	$ 0.1013 (76%)

Estimated Allocations for 2022 through August 31, 2022

	Distribution Per Share		Net Investment Income	Net Realized Short-Term Gains	Net Realized Long-Term Gains	Return of Capital
FUND	$0.4082		$ 0.0767 (19%)	$ 0.0707 (17%)	$ 0.1595 (39%)	$ 0.1013 (25%)

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 8/31/2022)1	Annualized Current Distribution Rate (expressed as a percentage of NAV as of 8/31/2022)2	Cumulative total return (in relation to NAV for the fiscal year through 8/31/2022)3		Cumulative fiscal year Distribution Rate (as a percentage of NAV as of 8/31/2022)4
FUND	8.07%	6.48%	-6.16%		4.96%

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 August 31, 2022. 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 August 31, 2022.

³  Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2021 to August 31, 2022, 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, 2022 to August 31, 2022), as a percentage of the Fund’s NAV as of August 31, 2022.

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.

Royal Bank Plaza | 200 Bay Street | Toronto, Ontario | Canada M5J 2J1 | (203) 636-0977 | www.sprott.com

Contact:	Glen Williams
	(416) 943-4394

FAQ

What is the quarterly distribution amount for Sprott Focus Trust (FUND)?

Sprott Focus Trust has declared a quarterly distribution of $0.1334 per share.

When will the distribution be paid to stockholders of Sprott Focus Trust (FUND)?

The distribution will be paid on September 23, 2022, to stockholders of record as of September 12, 2022.

What percentage of the distribution for Sprott Focus Trust (FUND) is classified as a return of capital?

The current distribution includes approximately 76% return of capital.

What is the annualized current distribution rate for Sprott Focus Trust (FUND)?

The annualized current distribution rate for Sprott Focus Trust is 6.48% based on NAV as of August 31, 2022.

How does Sprott Focus Trust (FUND) determine its distribution policy?

The Fund's distribution policy is based on an annual rate of 6% of the rolling average of the prior four quarter-end NAVs.