NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman High Yield Strategies Fund Inc. (NHS) has declared a distribution of $0.0905 per share of common stock, payable on February 29, 2024, with a record date of February 15, 2024, and an ex-date of February 14, 2024. The Fund anticipates maintaining a monthly distribution of $0.0905 per share, subject to market conditions. The ability to sustain this distribution rate depends on factors such as income from investments, leverage costs, and Fund fees. The distribution may consist of net investment income, capital gains, and return of capital. Compliance with the Investment Company Act of 1940 will be ensured, and the tax characteristics of distributions paid in 2024 will be determined at the end of the year.

Insights

Financial Analyst

The announcement by Neuberger Berman High Yield Strategies Fund Inc. of a distribution of $0.0905 per share is a pivotal event for shareholders and potential investors. This distribution is indicative of the Fund's current financial health and its ability to generate income for its investors. The stability and consistency of such distributions are often seen as a sign of a well-managed fund, which can attract new investors and positively affect the stock price.

However, the ability of the Fund to maintain this distribution rate hinges on several factors such as the income from investments, the cost of leverage and overall fees and expenses. A critical aspect for investors to monitor would be the Fund's investment income stability, as fluctuations could impact future distributions. Moreover, the mention of potential returns of capital in distributions could imply that not all payouts are from income, which might affect investor perception of the Fund's earning power.

Tax Advisor

From a tax perspective, the composition of the Fund's distributions is of utmost importance. The notice that distributions may include net investment income, net realized capital gains and return of capital is significant. Each component has different tax implications. Net investment income and capital gains are typically subject to taxation, whereas a return of capital is not immediately taxed but reduces the investor's cost basis in the investment.

Investors should be aware that the final tax characteristics of the distributions will only be determined at the end of the year, which necessitates careful tax planning and consideration. The Fund's compliance with Section 19 of the Investment Company Act of 1940 ensures transparency in distributions, which is crucial for accurate tax reporting and forecasting of after-tax returns.

Market Research Analyst

Understanding the broader market implications of Neuberger Berman High Yield Strategies Fund Inc.'s distribution declaration requires analyzing industry benchmarks and comparable funds' distribution policies. If the Fund's distribution yield is competitive, it may be well-positioned to capture market share from income-focused investors, especially in a low-interest-rate environment. Conversely, if the yield is below industry standards or if there are concerns about the sustainability of the distributions, it could lead to a negative market reaction.

Additionally, the Fund's level distribution policy, which aims for consistent monthly distributions, can be an attractive feature for investors seeking regular income. However, the market will also consider the Fund's performance and the economic outlook, which can influence investor sentiment and the Fund's ability to sustain its distribution policy.

NEW YORK, Jan. 31, 2024 /PRNewswire/ -- Neuberger Berman High Yield Strategies Fund Inc. (NYSE American: NHS) (the "Fund") has announced a distribution declaration of $0.0905 per share of common stock. The distribution announced today is payable on February 29, 2024, has a record date of February 15, 2024 and has an ex-date of February 14, 2024.

Under its level distribution policy, the Fund anticipates that it will make regular monthly distributions, subject to market conditions, of $0.0905 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, the cost of leverage 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 only of 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 High Yield Strategies Fund Inc. (NHS)?

The distribution declared is $0.0905 per share of common stock.

When is the distribution payable?

The distribution is payable on February 29, 2024.

What is the record date for the distribution?

The record date for the distribution is February 15, 2024.

What is the ex-date for the distribution?

The ex-date for the distribution is February 14, 2024.

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

The ability to maintain the distribution rate depends on factors such as income from investments, leverage costs, and Fund fees.

What will the distribution consist of?

The distribution may consist of net investment income, net realized capital gains, and return of capital.

How will compliance with the Investment Company Act of 1940 be ensured?

Compliance will be ensured by providing a notice for any distribution that does not consist solely of net investment income.

When will the tax characteristics of distributions paid in 2024 be determined?

The tax characteristics will be determined after the end of the year.