- Approved by the Fund's Board of Directors, the commitment means that Adams Natural Resources Fund's shareholders can count on receiving annual distributions that will result in an annual distribution rate of at least 6% regardless of whether the market is up or down.
- You will receive from the Fund each year an amount equal to at least 6% of the average trailing twelve-month market price of our stock, which will be calculated using the NYSE month-end market price for the twelve months ended October 31.
- Distributions will be made in four installments using the same payout schedule that we have used for many years – three interim quarterly distributions of earned investment income (March 1, June1 and September 1) and a year-end distribution of net investment income and realized capital gains. If necessary to meet the 6% minimum commitment, a return of capital will also be made. Shareholders will continue to have the option to receive the year-end distribution in either cash or additional shares of stock.
- Portions of the distributions may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum applicable federal income tax rate, which is currently 15% in taxable accounts for individuals.
- Our annual distribution rate will be greater than 6% in any year in which the combined amount of net investment income and realized capital gains generated by the Fund produces a distribution rate that is greater than 6%.
- In any year in which the combined amount of net investment income and realized capital gains generated by the Fund produces a distribution rate that is less than 6%, distributions may include a return of capital.
- Our commitment provides a more predictable level of annual distribution rate and may be particularly attractive to investors seeking retirement income.
For more details on the annual minimum 6% distribution rate, please click here to read the press release that we issued on September 13, 2012.