Thornburg Income Builder Opportunities Trust Announces Distribution
- None.
- None.
The announcement by Thornburg Income Builder Opportunities Trust regarding its monthly distribution of $0.10417 per share is a routine disclosure that typically garners attention from current and prospective investors seeking income-generating investments. The distribution's composition, including net investment income and net realized short-term capital gains, provides insight into the Trust's income sources and investment strategy effectiveness. The absence of a return of capital in this distribution is notable, as it suggests that the payouts are not eroding the principal value of the investments, which can be a concern for income-focused shareholders.
From a financial analysis standpoint, the distribution rate relative to the net asset value or market price is a key metric for assessing the Trust's yield. A stable distribution, as indicated by 'No Change' from the previous declaration, can be perceived as a sign of stability or a well-managed distribution policy. However, investors should consider the total return, which includes both the income received and the capital appreciation of the shares, to evaluate the overall performance of the Trust.
The specific tax characteristics of the Trust's distributions, as will be reported on Form 1099 after the year-end, are crucial for shareholders' tax planning. The inclusion of short-term capital gains, which are taxed at ordinary income rates, as opposed to long-term capital gains, which typically benefit from lower tax rates, affects the after-tax return for investors. This distinction is particularly relevant for those in higher tax brackets. Furthermore, the potential for future distributions to include a return of capital underscores the importance of understanding the tax implications, as these are not taxable events in the year they occur but do adjust the shareholder's cost basis, potentially impacting capital gains upon sale of the shares.
The Trust's investment strategy, which includes a broad range of income-producing securities from both U.S. and global markets, reflects a diversified approach aimed at generating current income and additional total return. The allocation to emerging market companies, capped at 20% of managed assets, introduces an element of geographical diversification that can potentially enhance returns but also brings additional risk factors such as currency fluctuation and geopolitical concerns. The Trust's adherence to its objective of investing at least 80% of its managed assets in income-producing securities is a key factor for investors seeking consistent income distributions.
Investors also need to be aware of the excise tax implications for the Trust, as it may influence the timing and amount of distributions. The requirement to distribute at least 98% of its ordinary income and 98.2% of its capital gains to avoid the tax can lead to year-end distributions that investors need to anticipate in their investment planning.
The Trust's monthly distribution is shown below:
Amount | Payable Date | Ex-Dividend Date | Record Date | Change from |
March 20, 2024 | March 8, 2024 | March 11, 2024 | No Change |
Distribution rates are not performance and are calculated by summing the Trust's monthly distribution per share over four quarters and dividing by the net asset value or market price per share, as applicable, as of the distribution announcement date. Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The Trust's distribution payable on March 20, 2024, does not include a long-term capital gain or a return of capital, but does include a short-term capital gain of
The Trust's fiscal year (10/01/2023 through 09/30/2024) cumulative distributions are shown below:
Current Distribution | Cumulative | |
Net Investment | ||
Net Realized | ||
Net Realized | ||
Return of | ||
Total per share |
Shareholders should not assume that the source of a distribution from the Trust is net income or profit. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Trust's investment performance and should not be confused with "yield" or "income." Future distributions may consist of a return of capital. For further information regarding the Trust's distributions, please visit www.thornburg.com/tbld-distributions.
The Trust's investment objective is to provide current income and additional total return. The Trust seeks to achieve its objective by investing, directly or indirectly, at least
As a registered investment company, the Trust is subject to a
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
About Thornburg
Thornburg Investment Management (Thornburg) is a global investment firm delivering on strategy for institutions, financial professionals and investors worldwide. The privately held firm, founded in 1982, is an active, high-conviction manager of equities, fixed income and multi-asset solutions. With
As an independent firm, Thornburg can take on a wide range of opportunities, explore ideas thoroughly and work across strategies to deliver consistent risk-adjusted outperformance over the long term. The firm attracts free-thinking professionals who are eager to pursue investment outcomes beyond the confines of popular wisdom. From nimble operational capabilities to principles and actions fitting of a global citizen, Thornburg's world-class investment platform and team are aligned on strategy to serve investors.
Thornburg's
* * *
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. A registration statement relating to these securities has been filed with and declared effective by the
Certain statements in this press release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Trust, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the Trust nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Risk is inherent in all investing. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.
Thornburg Securities LLC, member FINRA, is a wholly owned subsidiary of Thornburg Investment Management, Inc.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Media Inquiries
Michael Corrao
Director of Global Communications
Thornburg Investment Management
Tel: +1 505 467 5345
Email: mcorrao@thornburg.com
###
____________________ |
1 Includes |
View original content to download multimedia:https://www.prnewswire.com/news-releases/thornburg-income-builder-opportunities-trust-announces-distribution-302077579.html
SOURCE Thornburg Investment Management
FAQ
What is the monthly distribution announced by Thornburg Income Builder Opportunities Trust (TBLD)?
When is the distribution payable to common shareholders?
What is the specific tax characteristic included in the distribution payable on March 20, 2024?
What is the Trust's investment objective?
What percentage of the Trust's managed assets are invested in income-producing securities?
