Sprott Focus Trust, Inc. (Nasdaq-FUND) Declares Second Quarter Common Stock Distribution of $0.1299 Per Share
Sprott Focus Trust (Nasdaq: FUND) has announced a quarterly distribution of $0.1299 per share, payable on July 1, 2024. This distribution is part of the Fund's policy of paying quarterly distributions at an annual rate of 6% based on the rolling average NAV of the previous four quarters. For this distribution, stockholders can choose to receive additional shares or cash. The distribution's sources are estimated to be 14.86% from net investment income, 3.85% from short-term gains, and 81.29% from long-term gains. The average annual total return for the Fund over the past five years is 13.67%, with a current annualized distribution rate of 1.43% as of May 31, 2024.
- Quarterly distribution of $0.1299 per share declared.
- Annual distribution rate set at 6% of the rolling average NAV.
- High percentage of distribution sourced from long-term gains (81.29%).
- Average annual total return of 13.67% over the past five years.
- Current annualized distribution rate is relatively low at 1.43%.
- Only 14.86% of the distribution comes from net investment income.
- Sizable portion (81.29%) of the distribution relies on realized long-term gains, which may not be sustainable.
Insights
The announcement of Sprott Focus Trust, Inc.'s quarterly distribution is notable for investors primarily due to its implications for income generation and investment strategy. The declared distribution of
From a financial perspective, the distribution breakdown reveals critical insights. With
Additionally, the distribution policy, which aims for an annual rate of
In summary, while the distribution offers a positive yield, reliance on long-term gains could introduce risk if market conditions change. Investors must consider both the immediate income and long-term sustainability of these distributions.
TORONTO, June 04, 2024 (GLOBE NEWSWIRE) -- Sprott Focus Trust, Inc. (Nasdaq-FUND) (the 鈥淔und鈥� or 鈥淔UND鈥�) has declared a quarterly distribution of
The Fund currently has adopted a Distribution Policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of
The Fund鈥檚 estimated sources of the distribution to be paid on July 1, 2024 and for 2024 year-to-date are as follows:
Estimated Allocations as of May 31, 2024
| 听 | Distribution Per Share | Net Investment Income | Net AG真人官方ized Short-Term Gains | Net AG真人官方ized Long-Term Gains | Return of Capital | |
| FUND | ||||||
Estimated Allocations for 2024 through May 31, 2024
| 听 | Distribution Per Share | Net Investment Income | Net AG真人官方ized Short-Term Gains | Net AG真人官方ized Long-Term Gains | Return of Capital | |
| FUND | ||||||
You should not draw any conclusions about the Fund鈥檚 investment performance from the amount of the current distribution or from the terms of the Fund鈥檚 Distribution Policy. The amounts and sources of distributions reported herein 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鈥檚 investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The 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.
Fund Performance and Distribution Rate Information
| 听 | Average Annual Total Return (in relation to NAV for the 5-year period ending on 05/31/2024)1 | Annualized Current Distribution Rate (expressed as a percentage of NAV as of 05/31/2024)2 | Cumulative total return (in relation to NAV for the fiscal year through 05/31/2024)3 | Cumulative fiscal year Distribution Rate (as a percentage of NAV as of 05/31/2024)4 | ||||
| FUND | ||||||||
1听听Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five year period ended May 31, 2024. Annual NAV Total Return is the percentage change in the Fund鈥檚 NAV over a year, assuming reinvestment of distributions paid.
2听听The Annualized Current Distribution Rate is the current fiscal period鈥檚 distribution rate annualized as a percentage of the Fund鈥檚 NAV as of May 31, 2024.
3听听Cumulative Total Return is the percentage change in the Fund鈥檚 NAV from December 31, 2023 to May 31, 2024, assuming reinvestment of distributions paid.
4听听The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2024 to May 31, 2024), as a percentage of the Fund鈥檚 NAV as of May 31, 2024.
About Sprott Focus Trust, Inc.
Sprott Focus Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the Nasdaq Global Select Market. The Fund鈥檚 investment goal is long-term capital growth, which it seeks by normally investing at least
For further information on the Fund, please visit our web site at: . An investor should consider investment objectives, risks, charges and expenses carefully before investing. The Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. The Fund trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker.
Suite 230 | 320 Post Road | Darien, Connecticut | USA 06820 | (203) 636-0977 |
Contact:
Glen Williams
(416) 943-4394
FAQ
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