Clough Global Opportunities Fund Section 19(a) Notice
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The distribution announcement by the Clough Global Opportunities Fund is a significant marker for investors, as it directly affects their income from the investment. The portion of the distribution classified as a return of capital (88.45% for the current distribution) is particularly noteworthy. This high percentage suggests that the majority of the distribution is not sourced from net investment income or realized capital gains, which could be a red flag for investors seeking sustainable income. A return of capital reduces the Fund's assets, potentially impacting future distributions and the Fund's ability to maintain its distribution rate.
Furthermore, the Fund's performance metrics, such as the annualized distribution rate as a percentage of Net Asset Value (NAV), provide insight into the Fund's yield relative to its NAV. The negative five-year average annual total return on NAV (-0.04%) could raise concerns about the Fund's long-term performance and sustainability of distributions. Investors should consider these figures in the context of their investment strategy and risk tolerance.
From a tax perspective, the distinction between investment income, capital gains and return of capital is critical. The Fund's notice indicates that the actual amounts and sources for tax purposes will depend on the Fund's year-end investment experience and tax regulations. For shareholders, this means that the character of distributions could change, affecting their tax liability. A return of capital is not taxed immediately as income but reduces the cost basis of the investment, deferring the tax liability until the shares are sold.
Investors should be aware of the implications for their individual tax situations and prepare for the possibility of receiving revised tax forms if the Fund adjusts the classification of these distributions at the fiscal year-end. It's important to consult with a tax professional to understand the impact on one's tax return and plan accordingly.
The data provided by the Clough Global Opportunities Fund can serve as a basis for strategic decision-making for both current and potential investors. A high return of capital percentage indicates that the Fund may be returning principal to investors rather than profits, which could imply that the Fund's current income and gains are not sufficient to cover the distributions. This situation may not be sustainable in the long term and could lead to a reduction in future distributions or a need for the Fund to adjust its investment strategy.
Investors should also consider the Fund's historical NAV performance and distribution rates in relation to the overall market and comparable funds. While past performance is not indicative of future results, it is a critical component of due diligence. A comprehensive strategy would also consider the Fund's investment objectives, portfolio holdings and management team when assessing the desirability of this investment within a diversified portfolio.
DENVER, CO / ACCESSWIRE / December 29, 2023 / On December 29, 2023, the Clough Global Opportunities Fund (NYSE American:GLO) (the "Fund"), a closed-end fund, paid a monthly distribution on its common stock of
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
| Current Distribution from: | ||
Per Share ($) | % | |
| Net Investment Income | 0.00558 | |
| Net Realized Short-Term Capital Gain | 0.00000 | |
| Net Realized Long-Term Capital Gain | 0.00000 | |
| Return of Capital or other Capital Source | 0.04272 | |
| Total (per common share) | 0.04830 | |
| Fiscal Year-to-Date Cumulative Distributions from: | ||
Per Share ($) | % | |
| Net Investment Income | 0.00715 | |
| Net Realized Short-Term Capital Gain | 0.00000 | |
| Net Realized Long-Term Capital Gain | 0.00000 | |
| Return of Capital or other Capital Source | 0.08945 | |
| Total (per common share) | 0.09660 |
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not 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. The 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 Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with ‘yield' or ‘income.'
Presented below are return figures, based on the change in the Fund's Net Asset Value per share ("NAV"), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance & Distribution Information
| Fiscal Year to Date (11/01/2023 through 11/30/2023) | ||||
| Annualized Distribution Rate as a Percentage of NAV^ | ||||
| Cumulative Distribution Rate on NAV^+ | ||||
| Cumulative Total Return on NAV* | ||||
| Average Annual Total Return on NAV for the 5 Year Period Ending 11/30/2023** | - | |||
Past performance is not indicative of future results.
^ Based on the Fund's NAV as of November 30, 2023.
+Cumulative distribution rate is based on distributions paid to date for the period November 1, 2023 through December 31, 2023.
*Cumulative fiscal year-to-date return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions and that all rights in the Fund's rights offering were exercised, for the period November 1, 2023 through November 30, 2023.
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and that all rights in the Fund's rights offering were exercised, as of the last business day of the month prior to the month of the current distribution record date.
While the NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.
Shareholders should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Plan.
Furthermore, the Board of Trustees reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Trustees will continue to monitor the Fund's distribution level, taking into consideration the Fund's net asset value and the financial market environment. The Fund's distribution policy is subject to modification by the Board of Trustees at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
Contact Info:
Website: https://www.cloughcefs.com/
Email: cloughclientinquiries@paralel.com
SOURCE: Clough Global Opportunities Fund | GLO
View the original press release on accesswire.com
FAQ
What is the monthly distribution paid by Clough Global Opportunities Fund (NYSE American:GLO) on December 22, 2023?
What are the estimated sources of distribution for the Clough Global Opportunities Fund (NYSE American:GLO)?
What are the fiscal year-to-date cumulative distributions for Clough Global Opportunities Fund (NYSE American:GLO)?
What is the significance of the Fund estimating that it has distributed more than its income and net realized capital gains?
How does the NAV performance of Clough Global Opportunities Fund (NYSE American:GLO) relate to the value of a shareholder's investment?
