NEW YORK, NY--(Marketwired - Nov 14, 2014) - Cornerstone Progressive Return Fund (
The amounts set forth below reflect the effect of a one-for-four reverse stock split expected to occur in December 2014. Should the reverse stock split not become effective, the per share amount would be proportionally adjusted and a future announcement regarding the adjusted per share amount will be provided.
| Record Date | Payable Date | Per Share | ||
January 15, 2015 |
January 30, 2015 |
$0.2858 |
||
| February 16, 2015 | February 27, 2015 | $0.2858 | ||
| March 16, 2015 | March 31, 2015 | $0.2858 | ||
Related to the timing of the expected reverse stock split, the December 2014 monthly distributions payable date has been changed to December 19, 2014. The record date of December 15, 2014 is unchanged. The per share amounts previously reported are unaffected by such reverse stock split.
The Board of Trustees (the "Board") believes that the Fund's shareholders are well served by regular distributions which increase liquidity and provide flexibility to individual shareholders in managing their investment. Accordingly, it is the intention of the Board that the Fund will make continuous monthly distributions. The monthly distributions will be reviewed by the Board and declared periodically throughout the year. From time to time, the Board may consider resetting the distribution amount.
It should be noted that these distributions are not tied to the Fund's investment income or capital gains and do not represent yield or investment return on the Fund's portfolio. The distribution policy will be reviewed and approved at least annually by the Board and can be modified at the Board's discretion for the benefit of the Fund and its shareholders. The Board remains convinced that a managed distribution policy of this kind enhances flexibility for shareholders in managing their investment in the Fund. Shareholders have the option of reinvesting all or a portion of the distributions in additional shares of the Fund through the Fund's reinvestment plan or receiving cash. Shareholders should carefully read the description of the reinvestment plan contained in the Fund's report to shareholders, which may provide an additional benefit to shareholders who participate in the plan.
Under the distribution policy, the Fund's distributions will consist either of (1) earnings, (2) capital gains, or (3) return-of-capital, also known as paid-in-capital, or some combination of one or more of the above. A return-of-capital is the return of a portion of the investor's original investment. Given the current economic environment and the composition of the Fund's portfolio, a substantial portion of the Fund's distributions for the current calendar year is expected to consist of a return of the investor's capital. Accordingly, these distributions should not be confused with yield or investment return on the Fund's portfolio. The final composition of the distributions for 2014 cannot be determined until after the end of the year and is subject to change depending on market conditions, the magnitude of income and realized gains for the year.
In any given year, there can be no guarantee that the Fund's investment returns will exceed the amount of the net distributions. To the extent that the amount of distributions taken in cash exceeds the total net investment returns of the Fund, the assets of the Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of the Fund will increase. Distributions designated as return-of-capital are not taxed as ordinary income dividends and are referred to as tax-free dividends or nontaxable distributions. A return-of-capital distribution reduces the cost basis of an investor's shares in the Fund. Shareholders can expect to receive tax-reporting information for 2014 distributions by the middle of February 2015 indicating the exact composition per share of the distributions received during the calendar year. Shareholders should consult their tax advisor for proper tax treatment of the Fund's distributions.
Volatility in the world economy helps to create what Cornerstone Advisors, Inc. (the "Adviser") views as significant opportunities through investments in closed-end funds. In addition to holding closed-end funds that invest substantially all of their assets in equity securities, the Adviser may also choose to take advantage of situations in funds that invest in fixed income or other investment categories. Closed-end funds, with their broadly diversified holdings, will enhance diversification within the Fund's portfolio.
Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level is reduced by the operating expenses and fees of such other investment companies, including advisory fees. To the extent the Fund invests its assets in investment company securities, those assets will be subject to the risks of the purchased investment company's portfolio securities, and a shareholder in the Fund will bear not only their proportionate share of the expenses of the Fund, but also, indirectly the expenses of the purchased investment company. There can be no assurance that the investment objective of any investment company in which the Fund invests will be achieved.
The Fund makes monthly distributions to shareholders at a rate that may include periodic distributions of its net income and net capital gains, ("Net Earnings"), or return-of-capital. If, for any fiscal year where total cash distributions exceed Net Earnings (the "Excess"), the Excess would decrease the Fund's total assets and, as a result, would increase the Fund's expense ratio. There is a risk that the total Net Earnings from the Fund's portfolio will not be great enough to offset the amount of cash distributions paid to the Fund's shareholders. If this were to occur, the Fund's assets would be depleted, and there is no guarantee that the Fund would be able to replace the assets. In addition, in order to make such distributions, the Fund may have to sell a portion of its investment portfolio at a time when independent investment judgment might not dictate such action. Furthermore, such assets used to make distributions will not be available for investment pursuant to the Fund's investment objective.
The Board had previously approved a share repurchase program. The share repurchase program authorizes management to make open market purchases, from time to time. Such purchases may be made opportunistically at certain discounts to net asset value per share when management reasonably believes that such repurchases may enhance shareholder value. There is no assurance that the Fund will purchase any shares or that the share repurchase program will have an impact on the liquidity or value of the Fund or the Fund's shares. To the extent that the Fund engages in share repurchase activity, such activity will be disclosed in the Fund's shareholder report for the relevant fiscal periods.
Cornerstone Progressive Return Fund is traded on the NYSE MKT LLC under the trading symbol "CFP". The Fund's Adviser serves as the investment adviser to two other closed-end funds, Cornerstone Strategic Value Fund, Inc. (
Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price that is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund's investment objective, risks, charges and expenses. Please read the Fund's disclosure documents before investing.
In addition to historical information, this release contains forward-looking statements which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund's investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund's disclosure documents, filed with the SEC, and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.