NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG) declares a distribution of $0.10 per share of common stock, payable on March 28, 2024. The Fund aims to maintain monthly distributions under its level distribution policy, subject to market conditions. The distribution may include net investment income, capital gains, and return of capital. The Fund's ability to sustain the distribution rate depends on various factors.

Insights

Financial Analyst

The distribution declaration of $0.10 per share by Neuberger Berman Next Generation Connectivity Fund Inc. signifies a commitment to providing shareholders with a predictable income stream. This level distribution policy, while aiming to deliver consistency, hinges significantly on the Fund's investment performance and market volatility. Investors should consider the implications of the Fund's reliance on income from investments, capital gains and the possible inclusion of return of capital in distributions.

Return of capital, while beneficial for providing liquidity to shareholders, may not be indicative of the Fund's investment performance, as it effectively reduces the invested capital base. Long-term, this could impact the Fund's ability to generate income. Furthermore, the Fund's expense ratio, which includes management fees and operational costs, directly affects the net income and, consequently, the sustainability of these distributions.

Tax Advisor

From a taxation perspective, the composition of the Fund's distributions is crucial for investors. Distributions that include return of capital are generally not taxable until the shareholder's cost basis in the stock is recovered. However, this reduces the cost basis, potentially leading to higher capital gains taxes upon sale of the shares. In contrast, distributions derived from net investment income and capital gains are subject to different tax treatments.

Investors should also note the importance of the final determination of the source and tax characteristics of distributions, as this will influence the tax implications. The notice provided under Section 19 serves to inform shareholders of the estimated portions of the distribution but is not intended for tax reporting, which underscores the need for careful tax planning and consultation with a tax professional.

Market Research Analyst

The announcement by Neuberger Berman Next Generation Connectivity Fund Inc. reflects broader industry trends where funds strive to offer stable distributions amidst uncertain market conditions. This approach can be attractive to income-focused investors, particularly in a low-interest-rate environment. However, the sustainability of such distributions is a key factor for investor confidence.

An analysis of the Fund's portfolio composition, sector allocation and historical performance can provide insights into the likelihood of maintaining its distribution levels. Comparing this Fund's distribution policy and performance with peer funds can also offer a benchmark for evaluating its competitiveness and market positioning.

NEW YORK, Feb. 29, 2024 /PRNewswire/ -- Neuberger Berman Next Generation Connectivity Fund Inc. (NYSE: NBXG) (the "Fund") has announced a distribution declaration of $0.10 per share of common stock. The distribution announced today is payable on March 28, 2024, has a record date of March 15, 2024, and has an ex-date of March 14, 2024.

Under its level distribution policy, the Fund anticipates that it will make regular monthly distributions, subject to market conditions, of $0.10 per share of common stock, unless further action is taken to determine another amount. The Fund's ability to maintain its current distribution rate will depend on a number of factors, including the amount and stability of income received from its investments, availability of capital gains, and the level of other Fund fees and expenses. There is no assurance that the Fund will always be able to pay a distribution of any particular amount or that a distribution will consist of only net investment income.

Due to an effort to maintain a stable distribution amount, the distribution announced today, as well as future distributions, may consist of net investment income, net realized capital gains and return of capital. In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. The notice would be for informational purposes and not for tax reporting purposes, and would disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital. The final determination of the source and tax characteristics of all distributions paid in 2024 will be made after the end of the year.

About Neuberger Berman

Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with 2,800 employees in 26 countries. The firm manages $463 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman's investment philosophy is founded on active management, fundamental research and engaged ownership. UNPRI named the firm a Leader, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last ten years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of December 31, 2023.

Statements made in this release that look forward in time involve risks and uncertainties. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

Contact:
Neuberger Berman Investment Advisers LLC
Investor Information
(877) 461-1899

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SOURCE Neuberger Berman

FAQ

What is the distribution amount declared by Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG)?

Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG) has declared a distribution of $0.10 per share of common stock.

When is the distribution payable?

The distribution announced by Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG) is payable on March 28, 2024.

What factors determine the Fund's ability to maintain its current distribution rate?

The Fund's ability to maintain its current distribution rate depends on factors such as the amount and stability of income received from its investments, availability of capital gains, and the level of other Fund fees and expenses.

What does the distribution consist of?

The distribution announced by Neuberger Berman Next Generation Connectivity Fund Inc. (NBXG) may consist of net investment income, net realized capital gains, and return of capital.

What information will be provided in compliance with Section 19 of the Investment Company Act of 1940?

In compliance with Section 19 of the Investment Company Act of 1940, a notice would be provided for any distribution that does not consist solely of net investment income. The notice would disclose estimated portions of the distribution, if any, consisting of net investment income, capital gains, and return of capital.