Key Takeaways
- • Source Capital (NYSE: SOR) raised its regular monthly distribution rate 10%, from $0.2083 ($2.50 annualized) to $0.23 ($2.76 annualized), for each of the next three months, according to a Business Wire release from Los Angeles.
- • The increase was approved by the Fund's Board of Trustees and applies to the next three monthly distributions only, with no guarantee of future adjustments.
- • The closed-end fund is managed by First Pacific Advisors, LP and seeks maximum total return from capital appreciation and investment income.
- • The Fund states that future distribution changes may be driven by interest rate levels, credit spreads, its allocation to public and private credit, equity exposure, and leverage.
Summary
The Board of Trustees of Source Capital (NYSE: SOR) approved a 10% increase in the Fund's regular monthly distribution rate, according to a Business Wire press release issued from Los Angeles. The monthly payment rises from $0.2083 per share, equal to $2.50 annualized, to $0.23 per share, equal to $2.76 annualized. The higher rate applies to each of the next three monthly distributions.
Source Capital is a closed-end investment company managed by First Pacific Advisors, LP. Its stated objective is to seek maximum total return for shareholders through both capital appreciation and investment income, consistent with protection of invested capital. The Fund may hold longer-duration assets such as dividend-paying equities and illiquid assets such as private loans, and the release describes the vehicle as suitable only for investors with a long-term horizon of roughly five years or more.
The release notes that the distribution rate may be adjusted in the future based on interest rate levels and credit spreads, the Fund's allocation to public and private credit of varying quality, its allocation to potentially higher-returning but lower-yielding equities, and the amount of leverage employed. The Fund's disclosures also state that distributions may include ordinary income, net capital gains, and/or return of capital, and that distributions should not be confused with yield or used as a measure of performance. Shares trade at market prices that may reflect a premium or discount to net asset value.
Source Capital is a closed-end investment company managed by First Pacific Advisors, LP. Its stated objective is to seek maximum total return for shareholders through both capital appreciation and investment income, consistent with protection of invested capital. The Fund may hold longer-duration assets such as dividend-paying equities and illiquid assets such as private loans, and the release describes the vehicle as suitable only for investors with a long-term horizon of roughly five years or more.
The release notes that the distribution rate may be adjusted in the future based on interest rate levels and credit spreads, the Fund's allocation to public and private credit of varying quality, its allocation to potentially higher-returning but lower-yielding equities, and the amount of leverage employed. The Fund's disclosures also state that distributions may include ordinary income, net capital gains, and/or return of capital, and that distributions should not be confused with yield or used as a measure of performance. Shares trade at market prices that may reflect a premium or discount to net asset value.
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