Fund Reclassifies to Diversified Status, Reducing Concentration Risk

summarizeSummary

LMP Capital and Income Fund Inc. has reclassified as a diversified fund, enhancing investor protection by reducing concentration risk and removing associated risk disclosures.

check_boxKey Events

• Diversification Status Change

  The Fund has reclassified its status from a non-diversified to a diversified management investment company under the Investment Company Act of 1940.

• Reduced Concentration Risk

  The new classification limits the fund's investment in any single issuer to no more than 5% of its total assets for 75% of its portfolio, reducing concentration risk.

• Risk Factor Removal

  The 'Non-Diversification Risk' paragraph has been deleted from the Fund's Prospectus and Statement of Additional Information.

auto_awesomeAnalysis

LMP Capital and Income Fund Inc. has reclassified its status from a non-diversified to a diversified management investment company. This change, resulting from ongoing operations, means the fund will now adhere to stricter diversification rules, limiting its investment in any single issuer to 5% of its total assets for 75% of its portfolio. This reclassification is a positive development for investors as it reduces concentration risk and has led to the removal of the "Non-Diversification Risk" disclosure from its prospectus.