SunAmerica Focused Alpha Large-Cap Fund Announces Declaration of Dividend Distribution
June 15 2011 - 6:09PM
Business Wire
SunAmerica Focused Alpha Large-Cap Fund, Inc. (NYSE: FGI), a
closed-end fund (the “Fund”), today announced that its Board of
Directors approved the declaration of a quarterly dividend
distribution in accordance with the Fund’s level dividend
distribution policy (the “Distribution Policy”) and approved the
dividend distribution of $0.05 per share of common stock. The
declaration date is June 15, 2011, the ex-dividend date is June 23,
2011, the record date is June 27, 2011, and the payable date is
July 6, 2011.
Under the Distribution Policy, the Fund intends to pay level
quarterly dividend distributions and increase, if necessary, the
amount payable for the fourth quarter to an amount expected to
satisfy the minimum distribution requirements of the Internal
Revenue Code of 1986, as amended. Each quarter, the Board of
Directors will review the amount of any potential dividend
distribution and the income, capital gains and capital available.
The Distribution Policy and dividend distribution rate set forth
above may be terminated or modified at any time.
Shareholders will receive a notice (the “Notice”) with each
dividend distribution, if required by Section 19(a) under the
Investment Company Act of 1940, as amended (the “1940 Act”),
estimating the sources of such dividend distribution and providing
other information required by an exemptive order (the “Order”)
granted to the Fund by the Securities and Exchange Commission
(“SEC”) on February 3, 2009, pursuant to which the Fund may
distribute any long-term capital gains more frequently than the
limits provided in Section 19(b) under the 1940 Act and Rule 19b-1
thereunder. The Notice will also be made available on the Fund’s
website: www.sunamericafunds.com. In addition, the Fund will issue
a press release at the time the Notice is mailed to shareholders
containing the same information that is included in the Notice. The
amounts and sources of dividend distributions reported in the
Notice are only estimates and are not provided for tax reporting
purposes. The final determination of the source of all dividend
distributions in 2011 will be made after year-end. The actual
amounts and sources of the amounts for tax reporting purposes will
depend upon the Fund’s investment experience during the remainder
of the fiscal year and may be subject to change based on tax
regulations. The Fund will send shareholders a Form 1099-DIV for
the calendar year that will tell the shareholder how to report
these dividend distributions for federal income tax purposes. You
should not draw any conclusions about the Fund’s investment
performance from the amount of this dividend distribution or from
the terms of the Distribution Policy.
Pursuant to the Order, dividend distributions paid by the Fund
during the year may include net income, long-term capital gains,
short-term capital gains and/or return of capital. Net income
dividends and short-term capital gain dividends, while generally
taxable at ordinary income rates, may be eligible, to the
extent of qualified dividend income earned by the Fund, to be
taxed at lower long-term capital gain rates. If the total
distributions made in any calendar year exceed investment company
taxable income and net capital gain, such excess distributed amount
would be treated as ordinary dividend income to the extent of the
Fund’s current and accumulated earnings and profits. Distributions
in excess of the earnings and profits would first be a tax-free
return of capital to the extent of the adjusted tax basis in the
shares. After such adjusted tax basis is reduced to zero, the
distribution would constitute capital gain (assuming the shares are
held as capital assets). A return of capital may occur, for
example, when some or all of the money invested in the Fund by a
shareholder is paid back to the shareholder. A return of capital
distribution does not necessarily reflect the Fund’s investment
performance and should not be confused with “yield,” “income” or
“profit.”
The Fund is a non-diversified, closed-end management investment
company. The Fund’s investment objective is to provide growth of
capital. The Fund seeks to pursue this objective by employing a
concentrated stock picking strategy in which the Fund, through
subadvisers selected by SunAmerica Asset Management Corp., actively
invests primarily in a small number of equity securities (i.e.,
common stocks) and to a lesser extent equity-related securities
(i.e., preferred stocks, convertible securities, warrants and
rights) of large capitalization companies primarily in the U.S.
markets. Marsico Capital Management, LLC is the large-cap growth
stock subadviser and BlackRock Investment Management, LLC is the
large-cap value stock subadviser.
For more information about the SunAmerica Focused Alpha
Large-Cap Fund, please visit www.sunamericafunds.com
As of May 31, 2011, SunAmerica Asset Management Corp. managed
and/or administered approximately $46.0 billion of assets.
Marsico Capital Management, LLC and BlackRock Investment
Management, LLC are not affiliated with SunAmerica Asset Management
Corp.
Investors should carefully consider the SunAmerica Focused Alpha
Large-Cap Fund’s investment objective, strategies, risks, charges,
expenses and Distribution Policy before investing.
THE SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND SHOULD BE CONSIDERED
AS ONLY ONE ELEMENT OF A COMPLETE INVESTMENT PROGRAM. THE FUND’S
EQUITY EXPOSURE AND DERIVATIVE INVESTMENTS INVOLVE SPECIAL RISKS.
AN INVESTMENT IN THIS FUND SHOULD BE CONSIDERED SPECULATIVE.
There is no assurance that the SunAmerica Focused Alpha
Large-Cap Fund will achieve its investment objective. The Fund is
actively managed and its portfolio composition will vary. Investing
in the Fund is subject to several risks, including: Non-Diversified
Status Risk, Growth and Value Stock Risk, Key Adviser Personnel
Risk, Investment and Market Risk, Issuer Risk, Foreign Securities
Risk, Emerging Markets Risk, Income Risk, Small and Medium
Capitalization Company Risk, Liquidity Risk, Market Price of Shares
Risk, Management Risk, Anti-Takeover Provisions Risk and Portfolio
Turnover Risk. The price of shares of the Fund traded on the New
York Stock Exchange will fluctuate with market conditions and may
be worth more or less than their original offering price. Shares of
closed-end funds often trade at a discount to their net asset
value, but may also trade at a premium.
The payment of dividend distributions in accordance with the
Distribution Policy may result in a decrease in the Fund’s net
assets. A decrease in the Fund’s net assets may cause an increase
in the Fund’s annual operating expenses and a decrease in the
Fund’s market price per share to the extent the market price
correlates closely to the Fund’s net asset value per share. The
Distribution Policy may also negatively affect the Fund’s
investment activities to the extent that the Fund is required to
hold larger cash positions than it typically would hold or to the
extent that the Fund must liquidate securities that it would not
have sold, for the purpose of paying the dividend distribution. The
Distribution Policy, may under certain circumstances, result in the
amounts of taxable distributions to exceed the levels required to
be distributed under the Internal Revenue Code of 1986, as amended
(i.e., to the extent the Fund has capital losses in any taxable
year, such losses may be carried forward to reduce the amount of
capital gains required to be distributed in future years; if
distributions in a year exceed the amount minimally required to be
distributed under the tax rules, such excess will be taxable as
ordinary income to the extent loss carryforwards reduce the
required amount of capital gains in that year). The Fund’s Board of
Directors has the right to amend, suspend or terminate the
Distribution Policy at any time without notice to shareholders. The
amendment, suspension or termination of the Distribution Policy
could have a negative effect on the Fund’s market price per share
which, in turn, could create or widen a trading discount.
Shareholders of shares of the Fund held in taxable accounts who
receive a dividend distribution (including shareholders who
reinvest in shares of the Fund pursuant to the Fund’s dividend
reinvestment policy) must adjust the cost basis to the extent that
a dividend distribution contains a nontaxable return of capital.
Investors should consult their tax adviser regarding federal, state
and local tax considerations that may be applicable in their
particular circumstances.
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