KKR Credit Income Fund - Monthly Distribution Announcement - 24 July 2024
KKC (KKC) Share Update July 2024 Tuesday 23rd
KKR Credit Income Fund Announces Monthly Distribution
KKR Credit Income Fund (ASX: KKC) has announced a new monthly distribution for its fully paid ordinary units, providing investors with a steady income stream.
Instant Summary:
- Monthly distribution of AUD 0.0167 per unit.
- Ex Date: 30 July 2024.
- Record Date: 31 July 2024.
- Payment Date: 15 August 2024.
- Distribution includes foreign income component.
Distribution Details
KKR Credit Income Fund has declared a monthly distribution of AUD 0.0167 per fully paid ordinary unit. This distribution is for the period ending 31 July 2024 and will be paid on 15 August 2024.
The ex-date for the distribution is 30 July 2024, meaning that investors must own the units before this date to be eligible for the payment. The record date, which determines the list of eligible shareholders, is 31 July 2024.
Distribution Components
The distribution amount is estimated to be a combination of foreign income and return of capital. Specifically, the entire amount of AUD 0.0167 per unit is attributed to foreign income, with no return of capital component.
It is important to note that the distribution is unfranked, meaning that it does not include any franking credits. This could have tax implications for investors, depending on their individual circumstances.
Tax Information
For tax purposes, the monthly distribution includes a 'fund payment' of 0 CPU as per section 12-395 of Schedule 1 of the Taxation Administration Act 1953. Investors should consult their tax advisors to understand the implications of this distribution on their tax filings.
The announcement of a consistent monthly distribution is likely to be viewed positively by investors seeking regular income. The inclusion of foreign income in the distribution may also be attractive to those looking for diversification in their income sources. However, the lack of franking credits could be a drawback for some investors, particularly those in higher tax brackets.
Investor Reaction:
Initial reactions from investors and analysts suggest a positive outlook on the regular income stream provided by the fund. Some investors have expressed satisfaction with the steady distribution, while others have noted the importance of understanding the tax implications of the unfranked distribution.
Conclusion:
Investors in KKR Credit Income Fund should take note of the key dates related to the distribution and consider the tax implications of the unfranked foreign income component. The regular monthly distribution provides a reliable income stream, which could be beneficial for income-focused portfolios.