Clipper Fund is paying a midyear long-term capital gain distribution of $3.53 to shareholders of record on June 27, 2022 with an ex-dividend date of June 28, 2022 and a payable date of June 29, 2022.

As large shareholders ourselves, we are conscious of tax costs and make every effort to be tax efficient.

Capital gains result from the appreciation of companies in the portfolio. The funds’ long-term investment approach means that this appreciation may have occurred over an extended period of time. All of the gains are long term and generally subject to lower tax rates than short-term gains or dividend income. Thus, for longtime shareholders in search of yield, capital gains distributions tend to be more tax efficient than interest or dividend income.