NEW YORK, April 11, 2019 /PRNewswire/ -- Neuberger
Berman High Yield Strategies Fund Inc. (NYSE American: NHS) (the
"Fund") has announced an increase in its monthly distribution rate
to $0.0905 per share of common stock
from the prior monthly distribution rate of $0.0658 per share, representing an increase of
approximately 38%. The Fund has also declared its next monthly
distribution at the new rate, which is payable on May 31, 2019, has a record date of May 15, 2019 and has an ex-date of May 14, 2019.
The Fund's new annualized distribution per share of common stock
is $1.086 versus the prior annualized
amount of $0.7896. The new
$0.0905 per share monthly
distribution represents an annualized distribution rate of
approximately 9.32% per share of common stock based on the Fund's
market price of $11.65 on
April 10, 2019.
Neuberger Berman Investment Advisers LLC ("Neuberger Berman"),
the Fund's investment manager, and the Fund's Board of Directors
(the "Board") continue to be focused on delivering value to
shareholders of the Fund. The distribution rate increase announced
today is an effort to enhance the Fund's competitiveness in the
secondary market and increase demand for the Fund's common stock in
the secondary market, in order to narrow the discount between the
market price of the Fund's common stock and its net asset value per
share. The Fund's Board has determined that -- like many other
closed-end funds -- it is in the best interests of the Fund and its
current stockholders to pay a higher distribution rate, even if
that distribution represents a combination of net investment
income, capital gains and return of capital. Neuberger Berman and
the Board will continue to consider other strategies or
transactions that may mitigate the discount that the Fund's common
stock trades relative to its net asset value.
Like much of the closed-end fund market, the Fund's common stock
discount widened substantially during the fourth quarter of 2018,
amid a broader market sell-off. While the Fund has experienced an
improvement in valuation since that time, the Fund's Board approved
the increased distribution rate in an effort to ensure that the
Fund remained competitive with other closed-end funds, while
remaining committed to its investment strategy dedicated to
rigorous and comprehensive credit analysis focused on the higher
quality end of the high yield market. The Board also considered,
among other things, the Fund's current level of income generated
relative to its current distribution amount, the levels of yields
available in the high yield bond market and the Fund's current and
expected future costs of leverage.
Due to an effort to maintain a stable distribution amount, the
distribution announced today, as well as future distributions, may
consist of net investment income, realized capital gains and return
of capital. In compliance with Section 19 of the Investment Company
Act of 1940, as amended, a notice would be provided for any
distribution that does not consist solely of net investment income.
The notice would be for informational purposes and not for tax
reporting purposes, and would disclose, among other things,
estimated portions of the distribution, if any, consisting of net
investment income, capital gains and return of capital. The final
determination of the source and tax characteristics of all
distributions paid in 2019 will be made after the end of the
year.
About Neuberger Berman
Neuberger Berman, founded in
1939, is a private, independent, employee-owned investment manager.
The firm manages a range of strategies—including equity, fixed
income, quantitative and multi-asset class, private equity and
hedge funds—on behalf of institutions, advisors and individual
investors globally. With offices in 22 countries, Neuberger
Berman's team is more than 2,000 professionals. For five
consecutive years, the company has been named first or second in
Pensions & Investments Best Places to Work in Money Management
survey (among those with 1,000 employees or more). Tenured, stable
and long-term in focus, the firm fosters an investment culture of
fundamental research and independent thinking. It manages
$304 billion in client assets as of
December 31, 2018. For more
information, please visit our website at www.nb.com.
Statements made in this release that look forward in time
involve risks and uncertainties. Such risks and uncertainties
include, without limitation, the adverse effect from a decline in
the securities markets or a decline in the Fund's performance, a
general downturn in the economy, competition from other closed end
investment companies, changes in government policy or regulation,
inability of the Fund's investment adviser to attract or retain key
employees, inability of the Fund to implement its investment
strategy, inability of the Fund to manage rapid expansion and
unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory
organizations.
Neuberger Berman Investment Advisers LLC
1290 Avenue
of the Americas
New York, NY 10104
Tel. 212.476.9000
Contact:
Neuberger Berman Investment Advisers
LLC Investor Information
(877) 461-1899
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