Voya Global Advantage and Premium Opportunity Fund & Voya Infrastructure, Industrials and Materials Fund Declare Quarterly Distributions
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Insights
The recent announcement by Voya Investment Management regarding their closed-end funds' distributions is a pertinent event for current and potential investors. The disclosed figures, particularly the source breakdown of the distributions, provide a snapshot of the funds' performance and strategy. The allocation between net investment income and realized capital gains versus return of capital is critical, as it signals the sustainability of the distributions. A higher percentage derived from investment income or capital gains is generally seen as a positive indicator, whereas a significant return of capital might suggest that the fund is not generating enough from its investments to sustain distributions.
Investors should note the variability of quarterly distributions and understand that these are not guaranteed. The funds' ability to maintain or adjust these distributions will depend on their underlying portfolio performance and market conditions. A detailed analysis of the funds' holdings, the management's strategy and market trends would be beneficial for stakeholders to assess the potential for future performance and the reliability of income from these funds.
From a taxation perspective, the composition of the Voya closed-end funds' distributions is noteworthy. The breakdown between net investment income, short-term and long-term capital gains and return of capital has distinct tax implications. For instance, long-term capital gains are typically taxed at a lower rate than short-term gains or ordinary income. A return of capital, on the other hand, is not taxed immediately; instead, it reduces the investor's cost basis in the fund, potentially increasing the capital gains tax liability when the shares are eventually sold.
Investors should consult with a tax professional to understand the impact of these distributions on their personal tax situation. Additionally, they should consider the timing of these distributions, particularly if they are planning to purchase or sell shares around the ex-dividend date, as this can affect the taxability of the distributions received.
When advising clients on the inclusion of such closed-end funds in their investment portfolios, it's important to consider the funds' distribution policies in the context of the client's income needs and investment goals. The Voya funds' regular quarterly distributions could be attractive for income-seeking investors. However, the fact that these distributions can vary and may include a significant portion of return of capital should be carefully weighed against the need for reliable income streams.
Moreover, the funds' past performance and the sources of their distributions can offer insights into their management's effectiveness and the potential risks involved. An investment advisor should perform due diligence on the funds' historical performance, the volatility of their distributions and the overall health of the sectors they are invested in. This comprehensive approach will help in making informed recommendations that align with the clients' long-term financial objectives.
With respect to the Funds, the distribution will be paid on January 16, 2024, to shareholders of record on December 29, 2023. The ex-dividend date is December 28, 2023. The distribution per share for each Fund is as follows:
Fund |
Distribution Per Share |
Voya Global Advantage and Premium Opportunity Fund |
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Voya Infrastructure, Industrials and Materials Fund |
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The Funds intend to make regular quarterly distributions based on the past and projected performance of each Fund. The amount of quarterly distributions may vary, depending on a number of factors. As portfolio and market conditions change, the rate of distributions on the common shares may change. There can be no assurance that the Funds will be able to declare a distribution in each period. Past performance is no guarantee of future results.
The following information is required under each Fund’s managed distribution policy and sets forth an estimate of the sources of each Fund’s distribution paid October 16, 2023 and distributions paid fiscal year-to-date. Amounts are expressed on a per common share basis and as a percentage of the distribution amount.
Voya Global Advantage and Premium Opportunity Fund |
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Source |
Oct Distribution |
% of Oct Distribution |
Cumulative Distributions paid Fiscal Year-to-Date
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% of the Cumulative Distributions for the Fiscal Year-to-Date1
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Net Investment Income |
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Net Realized Short-Term Capital Gains |
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Net Realized Long-Term Capital Gains |
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Return of Capital or Other Capital Source(s) |
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Total per common share |
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Voya Infrastructure, Industrials and Materials Fund |
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Source |
Oct Distribution |
% of Oct Distribution |
Cumulative Distributions paid Fiscal Year-to-Date |
% of the Cumulative Distributions paid Fiscal Year-to-Date1 |
Net Investment Income |
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Net Realized Short-Term Capital Gains |
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Net Realized Long-Term Capital Gains |
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Return of Capital or Other Capital Source(s) |
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Total per Common Share |
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- The Fund’s fiscal year is March 1, 2023 to February 28, 2024.
IMPORTANT DISCLOSURE: You should not draw any conclusions about each Fund’s investment performance from the amount of each distribution or from the terms of the Funds’ Plan. Each Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Funds is paid back to you. A return of capital distribution does not necessarily reflect each Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ The amounts and sources of distributions reported in this Section 19(a) Notice 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 each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each 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.
Set forth in the tables below is information relating to each Fund’s performance based on its net asset value (NAV) for certain periods.
Voya Global Advantage and Premium Opportunity Fund
Average annual total return at NAV for the five year period ended on September 30, 20231 |
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Annualized current distribution rate expressed as a percentage of NAV as of September 30, 20232 |
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Cumulative total return at NAV for the fiscal year through September 30, 20233 |
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Cumulative fiscal year to date distribution rate as a percentage of NAV as of September 30, 20234 |
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Voya Infrastructure, Industrials and Materials Fund
Average annual total return at NAV for the five year period ended on September 30, 20231 |
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Annualized current distribution rate expressed as a percentage of NAV as of September 30, 20232 |
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Cumulative total return at NAV for the fiscal year through September 30, 20233 |
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Cumulative fiscal year to date distribution rate as a percentage of NAV as of September 30, 20234 |
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- Average annual total return at NAV represents the compound average of the annual NAV total returns of the Fund for the five year period ended on September 30, 2023.
- The annualized current distribution rate is the cumulative distribution rate annualized as a percentage of the Fund’s NAV as of September 30, 2023.
- Cumulative total return at NAV is the percentage change in the Fund’s NAV for the period from the beginning of its fiscal year to September 30, 2023 including distributions paid and assuming reinvestment of those distributions.
- Cumulative fiscal year distribution rate for the period from the year-to-date period as a percentage of the Fund’s NAV as of September 30, 2023.
Past performance is no guarantee of future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors’ expectations for future distribution changes, the clarity of the Fund’s investment strategy and future return expectations, and investors’ confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund’s investment objective, risks, charges and expenses.
Certain statements made on behalf of the Fund in this release are forward-looking statements. The Fund’s actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in equity markets in general or the Fund’s investments specifically. Neither the Fund nor Voya Investment Management undertake any responsibility to update publicly or revise any forward-looking statement.
This information should not be used as a basis for legal and/or tax advice. In any specific case, the parties involved should seek the guidance and advice of their own legal and tax counsel.
About Voya® Investment Management
Voya Investment Management manages approximately
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SHAREHOLDER INQUIRIES: Shareholder Services at (800) 992-0180; voyainvestments.com
CONTACT: Kris Kagel, (800) 992-0180
Source: Voya Financial, Inc.
FAQ
When will the quarterly distribution be paid for Voya Global Advantage and Premium Opportunity Fund (IGA) and Voya Infrastructure, Industrials and Materials Fund (IDE)?
What is the distribution per share for Voya Global Advantage and Premium Opportunity Fund (IGA) and Voya Infrastructure, Industrials and Materials Fund (IDE)?
When is the ex-dividend date for the distribution?
What is the fiscal year for the Funds?
