SRH Total Return Fund, Inc. Declares Quarterly Distribution

Rhea-AI Summary

SRH Total Return Fund, Inc. (NYSE:STEW) has declared a quarterly distribution of $0.1375 per share to occur in April 2024, as part of its managed distribution program. This amounts to approximately 3.89% of the Fund's market price and 3.07% of its net asset value. The distribution will be payable in cash to stockholders of record on April 30, 2024, with a record date of April 23, 2024, and an ex-dividend date of April 22, 2024. The Board of Directors instituted the managed distribution program in November 2015 to provide regular quarterly distributions to its common stockholders independent of the Fund's income or capital gains.

Insights

Financial Analyst

The announcement by SRH Total Return Fund, Inc. regarding its quarterly distribution is a critical piece of information for investors and analysts. The distribution yield, calculated from the annualized distribution rate and the Fund's market price or net asset value (NAV), is a key metric for assessing the attractiveness of an investment in income-focused funds. A distribution yield of 3.89% based on market price and 3.07% on NAV indicates a moderate income stream relative to other fixed-income investments.

It is noteworthy that the Fund's shares are trading at a discount to its NAV. This situation, where the market price is lower than the NAV, can be appealing to investors as it implies a potential for capital appreciation in addition to the income generated from distributions. However, this also suggests that the market might be pricing in some risks or uncertainties associated with the Fund's underlying assets or management strategy.

The managed distribution program, which aims to provide a consistent payout irrespective of the Fund's income or capital gains, may offer stability for income-seeking investors. However, it is important to monitor whether the Fund's earnings can sustain these distributions over time to avoid eroding the asset base. Continuous distributions at a rate exceeding earnings could lead to a return of capital, effectively decreasing the Fund's NAV over time.

Market Research Analyst

The managed distribution policy adopted by SRH Total Return Fund, Inc. can have implications for the market perception of the Fund. Regular and predictable distributions are often seen favorably by the market, as they provide a clear income stream for investors. However, the policy's sustainability is contingent upon the Fund's ability to generate sufficient income and capital gains. If the Fund's performance lags, the policy could lead to a depletion of assets, which could negatively impact the Fund's long-term market price and stability.

Furthermore, the discount of the Fund's shares to its NAV needs further scrutiny. A persistent discount may indicate underlying issues such as investor skepticism about the asset management's strategy or performance. On the other hand, it could also represent an opportunity for investors to purchase shares at a price lower than the intrinsic value of the assets, potentially leading to capital gains if the discount narrows.

Investors and analysts should also consider the broader market conditions, including interest rate trends and economic outlook, which can affect the performance of income funds. Changes in these macroeconomic factors could influence the Fund's asset value and its ability to maintain its distribution levels.

DENVER, CO / ACCESSWIRE / February 8, 2024 / SRH Total Return Fund, Inc. (NYSE:STEW) (the "Fund") announced the declaration of a quarterly distribution of $0.1375 per share to occur in April 2024. This distribution is being paid as part of the Fund's managed distribution program under which the Fund intends to make per share distributions of $0.1375 per quarter or $0.55 per year. As of market close on February 5, 2024, the distribution (on an annualized basis) amounts to approximately 3.89% of the Fund's market price and 3.07% of its net asset value ("NAV").

Due to the current discount of the Fund's market price to its per share NAV and the fact that distributions are made in cash (i.e., at NAV), if Fund shares continue to trade at a discount at the time of this distribution, then it will be accretive to the Fund's market-price-based return. The April 2024 quarterly distribution will be payable in cash to stockholders of record per the following critical dates:

Pay Date	Record Date	Ex-Dividend Date	Amount Per Share
April 30, 2024	April 23, 2024	April 22, 2024	$0.1375

As previously announced, the Board of Directors instituted a managed distribution program in accordance with its Section 19(b) exemptive order in November 2015. In adopting the program, the Fund seeks to provide a regular quarterly distribution to its common stockholders which is not dependent on the amount of income earned or capital gains realized by the Fund.

Investors should not make any conclusions about the Fund's investment performance from the amount of the Fund's distributions or the Fund's distribution policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders 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 its full fiscal year and may be subject to changes based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes.

The Fund

SRH Total Return Fund, Inc. is a non-diversified closed-end investment company traded on the New York Stock Exchange under the trading symbol "STEW". As of February 5, 2024, the Fund's NAV was $17.92 per share and the closing market price was $14.14 (a -21.09% discount to NAV). For more information on the Fund, please visit the Fund's webpage at www.srhtotalreturnfund.com.

The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value.

Paralel Advisors LLC

Paralel Advisors LLC serves as the investment advisor to the SRH Total Return Fund. Together with our parent company, Paralel Technologies LLC, we develop technology-based solutions to better serve investors.

Rocky Mountain Advisers, LLC

RMA is an investment adviser registered with the SEC based out of Kansas. More information about RMA is available at www.srhtotalreturnfund.com as well as www.investrma.com.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

Contact info:

Website: https://srhtotalreturnfund.com/

Email: stewclientinquiries@paralel.com

SOURCE: SRH Total Return Fund, Inc.

View the original press release on accesswire.com

FAQ

What is the quarterly distribution amount declared by SRH Total Return Fund, Inc. (NYSE:STEW)?

The quarterly distribution declared is $0.1375 per share to occur in April 2024.

What percentage of the Fund's market price does the distribution amount to?

The distribution amounts to approximately 3.89% of the Fund's market price.

When will the distribution be payable to stockholders of record?

The April 2024 quarterly distribution will be payable in cash to stockholders of record on April 30, 2024.

Why did the Board of Directors institute the managed distribution program?

The Board of Directors instituted the managed distribution program in November 2015 to provide regular quarterly distributions to its common stockholders independent of the Fund's income or capital gains.