Ann: NBI announces increase in distribution rate, page-2

It would be useful to know what percentage of the distribution is going to be return of capital. This fund is in a difficult position, because the vast majority of its holdings are fixed rate with about 4 years duration, so as cash rates have increased over the last 6 to 8 months, I believe this fund has experienced little in the way of income growth, unlike competitors such as PGG and MOT (nearly all floating rate loans). About 70% of KKC's portfolio is floating, so they could increase their distribution substantially, but it looks like they opted to fund the buy back with the extra income (and keep the extra income as cash). I wonder what shareholders would prefer.

You'd have to imagine that the NBI fund manager wouldn't be too happy returning capital, as AUM will decrease. I suspect it would have been the custodian that made the decision to increase the distribution, but I'm only speculating.