BofA update shows where active managers are putting money
NEW YORK - KKR Income Opportunities Fund (NYSE: KIO) disclosed its upcoming monthly distributions of $0.1215 per common share, representing an 11.99% annualized distribution rate based on the current share price of $12.16. The distributions are scheduled for the end of April, May, and June 2025. According to InvestingPro data, the fund has maintained dividend payments for 13 consecutive years and currently trades near its 52-week low of $12.12, potentially presenting an opportunity for income-focused investors.
The Fund, a diversified, closed-end management investment company, aims to provide a high level of current income with a secondary objective of capital appreciation. Managed by KKR Credit Advisors (US) LLC, the Fund primarily invests in a mix of secured and unsecured loans as well as high yield corporate debt instruments, employing dynamic investment and hedging strategies. With a market capitalization of $497.72 million and a P/E ratio of 5.24, the fund has demonstrated strong returns over the past five years while maintaining relatively low price volatility. For detailed financial metrics and additional insights, consider exploring InvestingPro, which offers comprehensive analysis tools and exclusive ProTips.
Investors are advised to consider the Fund’s investment objectives, risks, charges, and expenses before investing. It is noted that the Fund’s distribution rate may be influenced by various factors, including market conditions, performance, and other aspects that could affect future distribution rates. The Fund’s shares’ investment return, price, yields, market value, and net asset value (NAV) will fluctuate with market conditions, and there is no guarantee that the Fund will achieve its investment objective. Recent performance metrics from InvestingPro show a YTD return of -6.5% and a one-year total return of 2.7%, highlighting the importance of thorough due diligence before making investment decisions.
The press release also includes forward-looking statements based on current beliefs and expectations, which are subject to change. The Fund and KKR do not commit to updating any forward-looking statements post-publication.
The Fund will provide a notice to shareholders for any distribution that is not solely from net investment income, as required by Section 19 of the Investment Company Act of 1940. Shareholders will receive a Form 1099-DIV at the year’s end for federal income tax reporting purposes.
This announcement is based on a press release statement and is intended to provide information on the Fund’s distribution schedule and factors that may influence its distribution rate. Investors should be aware that investing in the Fund involves risks, including the possibility of losing money. Past performance is not indicative of future results.
In other recent news, KKR Income Opportunities Fund has completed its acquisition of the assets of Insight Select Income Fund. As part of the transaction, Insight Select Income Fund shareholders received 1.34709 shares of KKR Income Opportunities Fund for each share they held, based on the closing net asset values on February 6, 2025. The deal ensures that only whole shares of KKR Income Opportunities Fund are issued, with any fractional shares being liquidated at market value and proceeds distributed in cash. Notably, 55.6% of Insight Select Income Fund shareholders opted to receive a portion of their consideration in cash, which will equate to approximately 8.8% of the value of their shares, with the remainder in KKR Income Opportunities Fund shares. The distribution of cash election proceeds and whole shares is set for February 12, 2025, while cash from the sale of fractional shares will be distributed early the following week. UBS Securities LLC served as the financial advisor to Insight North America LLC, with legal counsel provided by Dechert LLP, Clifford Chance LLP, and Troutman Pepper Hamilton Sanders LLP. These developments mark a significant step for KKR Income Opportunities Fund in its strategy to enhance income and capital appreciation through diversified investments.
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