Source Capital : FPA Announces Details Regarding Source Capital Stock Repurchase Program and Managed Distribution Policy
January 08, 2016 at 04:14 pm
Share
First Pacific Advisors, LLC (“FPA”) announced today that the Source
Capital, Inc. (SOR) (the “Fund”) stock repurchase program will be
effective as of January 18th through December 31st
for calendar year 2016. Details regarding the stock repurchase plan can
be found in the November 17, 2015 press release available at http://www.sourcecapitalinc.com.
As discussed in the November press release, under the program, the Fund
is authorized to make open-market repurchases of its common stock of up
to 10% of the Fund’s outstanding shares at such times as the Fund’s
shares trade at a greater than 10% discount to the Fund’s net asset
value, when in FPA’s judgment such repurchases would benefit
shareholders, subject to various factors, including the limitations
imposed by the federal securities laws governing the repurchase of an
issuer’s stock by the issuer and FPA’s ability to raise cash to
repurchase shares of the Fund’s common stock in a tax-efficient manner.
There is no assurance that the Fund will purchase shares at any specific
discount levels or in any specific amounts.
FPA expects to maintain the Fund’s managed distribution policy during
2016. As noted in the November 17, 2015 press release, the Fund expects
that the record date for this distribution will be February 19, 2016.
The Fund is a diversified, closed-end management investment company
seeking maximum total return for shareholders from both capital
appreciation and investment income to the extent consistent with
protection of invested capital. Its shares are listed on the New York
Stock Exchange under the symbol “SOR”. The Fund is managed by FPA, a Los
Angeles-based firm with approximately $31 billion under management
across multiple strategies.
You should consider the Fund’s investment objectives, risks, and
charges and expenses carefully before you invest. You can obtain
additional information by visiting the website at www.sourcecapitalinc.com,
by email at crm@fpafunds.com,
toll free by calling 1-800-279-1241 (option 1), or by contacting the
Fund in writing.
Investments in mutual funds carry risks and investors may lose
principal value. Stock markets are volatile and can decline
significantly in response to adverse issuer, political, regulatory,
market, or economic developments. It is important to remember that there
are risks inherent in any investment and there is no assurance that any
investment or asset class will provide positive performance over time.
Value style investing presents the risk that the holdings or
securities may never reach our estimate of intrinsic value because the
market fails to recognize what the portfolio management team considers
the true business value or because the portfolio management team has
misjudged those values. In addition, value style investing may
fall out of favor and underperform growth or other style investing
during given periods. Non-U.S. investing presents additional
risks, such as the potential for adverse political, currency, economic,
social or regulatory developments in a country, including lack of
liquidity, excessive taxation, and differing legal and accounting
standards. Non-U.S. securities, including American Depository
Receipts (ADRs) and other depository receipts, are also subject to
interest rate and currency exchange rate risks.
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Source Capital, Inc. (the Fund) is a diversified, closed-end management investment company. The investment objective of the Fund is to seek maximum total return for common shareholders from both capital appreciation and investment income to the extent consistent with protection of invested capital. The Fund's investments include semiconductor devices; industrial distribution and rental; cement and aggregates; Internet media; cable and satellite; application software; electrical components; chemicals; insurance brokers; diversified banks; base metals; banks; investment companies; food services; integrated utilities; railroad rolling stock, apparel, footwear and accessory design; e-commerce discretionary, hotels; restaurants and leisure; commercial and residential building equipment and systems; automotive retailers; real estate owners and developers; entertainment content; energy; health care services and others. The Fund's investment adviser is First Pacific Advisors, LP.