NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman High Yield Strategies Fund Inc. (NHS) declares a distribution of $0.0905 per share of common stock payable on April 30, 2024. The Fund aims to maintain regular monthly distributions, subject to market conditions and various factors affecting income stability.

Insights

Financial Analyst

The announcement by Neuberger Berman High Yield Strategies Fund Inc. of a distribution of $0.0905 per share is a reflection of the fund's current financial health and its ability to generate income for its shareholders. The key factors influencing the sustainability of such distributions include the income from investments and the cost of leverage. Investors should consider the implications of the fund's use of leverage, as it can amplify both gains and losses. The distribution's composition is also significant; if it includes a return of capital, it implies that part of the money shareholders receive is not from income but from their original investment, which can be less favorable in the long run.

Furthermore, the consistency in distribution amounts suggests a focus on providing shareholders with predictable returns, which might be appealing to income-focused investors. However, the reliance on capital gains and return of capital to maintain these distributions could indicate that the fund's income is not sufficient to cover the distributions on its own. This could potentially lead to a depletion of assets over time if not managed prudently.

Tax Advisor

From a tax perspective, the composition of the fund's distributions is important for shareholders. Distributions that are classified as return of capital are generally not taxed until the shareholder's cost basis in the stock is recovered. This differs from distributions classified as net investment income or capital gains, which are subject to different tax treatments. The fund's compliance with Section 19 of the Investment Company Act of 1940 ensures transparency in the characterization of distributions, allowing shareholders to plan for potential tax liabilities.

Shareholders should be aware of the tax implications of these distributions and the final determination of their sources at the year's end, as this will affect their individual tax situations. It is essential for investors to understand the tax characteristics of all distributions to accurately report income and adjust their investment strategy accordingly.

NEW YORK, March 28, 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 April 30, 2024, has a record date of April 15, 2024, and has an ex-date of April 12, 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)?

Neuberger Berman High Yield Strategies Fund Inc. (NHS) has declared a distribution of $0.0905 per share of common stock.

When is the distribution payable?

The distribution announced by Neuberger Berman High Yield Strategies Fund Inc. (NHS) is payable on April 30, 2024.

What is the record date for the distribution?

The record date for the distribution declared by Neuberger Berman High Yield Strategies Fund Inc. (NHS) is April 15, 2024.

What is the ex-date for the distribution?

The ex-date for the distribution announced by Neuberger Berman High Yield Strategies Fund Inc. (NHS) is April 12, 2024.

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

The Fund's ability to maintain its current distribution rate will depend on factors such as income received from investments, leverage costs, and Fund fees and expenses.

What will the distributions consist of?

The distributions may consist of net investment income, net realized capital gains, and return of capital to maintain a stable distribution amount.

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

In compliance with Section 19, a notice will be provided for any distribution that does not consist solely of net investment income, disclosing estimated portions of income sources.

When will the final determination of the source and tax characteristics of all distributions paid in 2024 be made?

The final determination of the source and tax characteristics of all distributions paid in 2024 will be made after the end of the year.