Sprott Focus Trust, Inc. (Nasdaq-FUND) Declares First Quarter Common Stock Distribution of $0.1305 Per Share
Rhea-AI Summary
Sprott Focus Trust (Nasdaq-FUND) has announced a quarterly distribution of $0.1305 per share on its Common Stock, payable on March 28, 2025, to stockholders of record as of March 14, 2025. The distribution can be received in either additional shares of Common Stock or cash, based on stockholder preference.
The Fund maintains a Distribution Policy of quarterly distributions at an annual rate of 6% of the rolling average of the prior four calendar quarter-end net asset values (NAVs). The fourth quarter distribution is set as the greater of 1.50% of the rolling average or the minimum distribution required by IRS regulations. This policy, including the annual rate, may be modified at the Board of Directors' discretion.
Positive
- Consistent quarterly dividend distribution maintained
- Flexible payment options offered to shareholders (cash or additional shares)
- 6% annual distribution rate based on rolling NAV average
Negative
- None.
Insights
Sprott Focus Trust's quarterly distribution of
The distribution mechanism deserves attention for its thoughtful design. By using a rolling average of quarterly NAVs rather than a fixed amount, the fund creates a more sustainable distribution approach that aligns payouts with underlying portfolio performance while providing smoother income flow. This methodology helps protect against NAV erosion that can plague fixed-distribution funds during market downturns.
For investors in FUND, this
The fourth quarter mechanism - paying the greater of
While routine in nature, this announcement confirms the fund's continued commitment to its established shareholder distribution framework, providing planning certainty for income-focused investors in the closed-end fund space.
TORONTO, March 04, 2025 (GLOBE NEWSWIRE) -- Sprott Focus Trust, Inc. (Nasdaq-FUND) (the “Fund” or “FUND”) 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’s estimated sources of the distribution to be paid on March 28, 2025 and for 2025 year-to-date are as follows:
Estimated Allocations as of February 28, 2025
| Distribution Per Share | Net Investment Income | Net Realized Short-Term Gains | Net Realized Long-Term Gains | Return of Capital | ||
| FUND | ||||||
Estimated Allocations for 2025 through February 28, 2025
| Distribution Per Share | Net Investment Income | Net Realized Short-Term Gains | Net Realized Long-Term Gains | Return of Capital | ||
| FUND | ||||||
You should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution or from the terms of the Fund’s 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’s 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
| Average Annual Total Return (in relation to NAV for the 5-year period ending on 02/28/2025)1 | Annualized Current Distribution Rate (expressed as a percentage of NAV as of 02/28/2025)2 | Cumulative total return (in relation to NAV for the fiscal year through 02/28/2025)3 | Cumulative fiscal year Distribution Rate (as a percentage of NAV as of 02/28/2025)4 | |
| FUND |
1 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 February 28, 2025. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2 The Annualized Current Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV as of February 28, 2025.
3 Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2024 to February 28, 2025, assuming reinvestment of distributions paid.
4 The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2025 to February 28, 2025), as a percentage of the Fund’s NAV as of February 28, 2025.
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’s 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: www.sprottfocustrust.com. 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 | www.sprott.com
Contact: Glen Williams
(416) 943-4394
FAQ
What is the Q1 2025 dividend amount for Sprott Focus Trust (FUND)?
When is the ex-dividend date for FUND's Q1 2025 distribution?
How does Sprott Focus Trust calculate its distribution rate?
What are the payment options for FUND's Q1 2025 distribution?
