BRIEF-GSV Capital Corp – Qtrly net investment income $0.17per share

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Repealing Affordable Care Act Taxes on Upper-Income Workers and Savers

The House Republican proposal to repeal and replace the Affordable Care Act would eliminate several taxes imposed under the Act. Among these is the Net Investment Income Tax that imposes a 3.8 percent surtax on income from investments. It applies to investment income of married couples with more than $250,000 of adjusted gross income, and single filers with more than $200,000 of adjusted gross income. This tax, in effect, extended the Medicare portion of the payroll tax to investment earnings for the first time. Critics complain that the repeal would benefit the rich, and cost the Treasury substantial revenue. They are looking only at the static “distribution tables” and ignoring the widespread economic benefits of repeal.

The Net Investment Income Tax is a bad tax, and its repeal will benefit everyone. The high tax rate on individual saving retards capital formation, which depresses productivity and wages. We estimate a “static” revenue loss from repeal at $628 billion over ten years, assuming no gain in GDP from the lower tax rate. On a static basis, that gain would fall only on individuals in the top 20% of the income distribution. But factoring in the “dynamic” growth effects of the repeal tells a different story. Repeal would raise employment by 133,000. The economy would be 0.7 percent larger, and wages about 0.6 percent larger. The income gains would be spread over all income levels. After-tax incomes in the bottom 80% of the income distribution would be about 0.65% higher than with the tax in place. They would share in the gains. The revenue cost would drop to about $444 billion, about 30% less than in the static estimate.

The repeal plan would also eliminate the 0.9 percent Medicare Hospital Insurance surtax on incomes above $250,000, which boosts the 2.9 percent HI tax to 3.8 percent. That tax also falls mainly on the rich. However, it discourages hours worked by high-income people, reduces the output of their businesses, and acts in part as a drag on earnings of their coworkers and employees. Its repeal, too, would benefit a wider group of income earners than is shown in the static distribution tables.

How to Report Social Security Income to the IRS the Right Way

First, start by taking your Social Security benefits and then dividing that amount by two. Add in taxable income from other sources, including work income, investment income, taxable pension and retirement payments. If that total is less than $25,000 for single filers or $32,000 for joint filers, then you wont have to include any of your Social Security benefits as income.

Republicans Give Rich Investors a Tax Break in Obamacare Revamp

HouseRepublicans have a plan to remake the US health-care system–with a perk for wealthy investors.

Included intheir proposal to repeal and replace the Affordable Care Act is a tax breakfor the wealthy. The Obamacare replacement bill, unveiled on Monday night and endorsed by President Donald Trump with a tweet on Tuesday morning, eliminates the net investment income tax, a 3.8 percent surcharge on almost all earnings from investments. The net investment income tax is paidonly by single people with incomes above $200,000 and married couples earning more than $250,000.

The average hit from the NIIT doesnt get beyond three figures unless yourein the top 1 percent of earners.The tax casts a wide net, though. Investorsmust pay that additional 3.8 percent on proceeds that include capital gains, dividends, interest, royalties, rental income, and passive business income.

Lazard World Dividend & Income Fund Declares Monthly Distribution

NEW YORK–(BUSINESS WIRE)–

The Board of Directors of Lazard World Dividend amp; Income Fund, Inc. (the Fund) (LOR) has authorized the Fund to declare today, pursuant to a level distribution policy, a monthly distribution of $0.06045 per share on the Fund’s outstanding common stock. The distribution is payable on April 24, 2017 to shareholders of record on April 12, 2017. The ex-dividend date is April 10, 2017.

Portfolio data as of February 28, 2017, including performance, asset allocation, top 10 holdings, sector weightings, regional exposure, and other Fund characteristics have been posted on Lazard Asset Management’s (LAM) website, www.LazardNet.com. Additionally, any notices required by Section 19(a) of the Investment Company Act of 1940, as amended, which provide information regarding the respective estimated amounts of each monthly distribution derived from net investment income, net realized capital gains (short- and long-term) and return of capital, will also be available on www.LazardNet.com.

The Fund’s objective is total return through a combination of dividends, income, and capital appreciation. The Fund’s net assets are invested in a portfolio of approximately 60 to 90 world equity securities, consisting primarily of stocks selected from the current holdings of other accounts managed by LAM. The equity portfolio is broadly diversified in both developed and emerging market countries and across the capitalization spectrum. The Fund seeks enhanced income by investing in short duration (typically less than one year) emerging market forward currency contracts and other emerging market debt instruments.

An indirect subsidiary of Lazard Ltd (LAZ), LAM, the Fund’s investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of December 31, 2016, LAM and affiliated asset management companies in the Lazard Group managed $198 billion worth of client assets. For more information about LAM, please go to www.LazardNet.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170317005467/en/

American Capital Senior Floating Reports Net Investment Income for the Fourth Quarter and Year Ended December 31 …

NEW YORK–(BUSINESS WIRE)–

American Capital Senior Floating, Ltd. (“ACSF” or the “Company”) (ACSF) today reported net investment income of $2.8 million, or $0.28 per share, and net earnings of $7.7 million, or $0.77 per share, for the quarter ended December31, 2016. ACSF reported net investment income of $11.8 million, or $1.18 per share, and net earnings of $30.5 million, or $3.05 per share, for the year ended December31, 2016 and net asset value (“NAV”) of $136.8 million, or $13.68 per share, as of December31, 2016.

FOURTH QUARTER 2016 FINANCIAL HIGHLIGHTS

  • Investing activities
    • Invested $34.9 million into 20 new obligors
    • Sold $10.1 million of investments and received $17.4 million of repayments, including distributions received from our collateralized loan obligations (“CLOs”)
  • Invested $34.9 million into 20 new obligors
  • Sold $10.1 million of investments and received $17.4 million of repayments, including distributions received from our collateralized loan obligations (“CLOs”)
  • Net investment income of $0.28 per share, or $2.8 million
    • Decreased $0.03 per share from Q3 2016 net investment income of $0.31 per share
  • Decreased $0.03 per share from Q3 2016 net investment income of $0.31 per share
  • Net earnings of $0.77 per share, or $7.7 million
    • Decreased $0.26 per share from Q3 2016 net earnings of $1.03 per share due to lower net unrealized appreciation in Q4 2016 as compared to Q3 2016
  • Decreased $0.26 per share from Q3 2016 net earnings of $1.03 per share due to lower net unrealized appreciation in Q4 2016 as compared to Q3 2016
  • NAV of $13.68 per share, or $136.8 million as of December31, 2016
    • $0.48 per share increase from September30, 2016 NAV per share of $13.20
  • $0.48 per share increase from September30, 2016 NAV per share of $13.20
  • Monthly cash distributions to stockholders of $0.097 per share ($0.291 for the quarter)
    • 8.5% annualized yield on the December31, 2016 NAV per share
    • 9.8% annualized yield on the December31, 2016 closing market price of $11.90 per share
  • 8.5% annualized yield on the December31, 2016 NAV per share
  • 9.8% annualized yield on the December31, 2016 closing market price of $11.90 per share
  • $244.9 million investment portfolio at fair value as of December31, 2016
    • $188.1 million, or 77%, in first lien floating rate loans
    • $15.5 million, or 6%, in second lien floating rate loans
    • $41.3 million, or 17%, of equity in CLOs
  • $188.1 million, or 77%, in first lien floating rate loans
  • $15.5 million, or 6%, in second lien floating rate loans
  • $41.3 million, or 17%, of equity in CLOs
  • 6.50% investment portfolio yield at cost as of December31, 2016
  • 2.76% cost of funds as of December31, 2016
  • 0.77x debt to equity ratio as of December31, 2016

YEAR ENDED 2016 FINANCIAL HIGHLIGHTS

  • Investing activities
    • Invested $94.3 million into 64 new loan obligors and 3 new CLO equity positions
    • Sold $44.8 million of investments and received $59.4 million of repayments, including distributions received from our CLOs
  • Invested $94.3 million into 64 new loan obligors and 3 new CLO equity positions
  • Sold $44.8 million of investments and received $59.4 million of repayments, including distributions received from our CLOs
  • Net investment income of $1.18 per share, or $11.8 million
    • Decreased $0.09 per share from 2015 net investment income of $1.27 per share
  • Decreased $0.09 per share from 2015 net investment income of $1.27 per share
  • Net earnings of $3.05 per share, or $30.5 million
    • $4.52 per share improvement from the 2015 net loss from operations of ($1.47) per share
  • $4.52 per share improvement from the 2015 net loss from operations of ($1.47) per share
  • Cash distributions to stockholders of $1.164 per share declared in 2016

Strong technical conditions in the leveraged loan and CLO markets contributed to ACSF’s strong portfolio performance and earnings during the fourth quarter and full year 2016,” said Kevin Braddish, President and Chief Executive Officer. “Going forward, we believe we are well positioned to use the benefits of the Ivy Hill platform and its access to the Ares Management platform to manage ACSF’s investment portfolio and navigate changing market conditions.”

PORTFOLIO AND INVESTMENT ACTIVITY

As of December31, 2016, the fair value of ACSF’s portfolio totaled $244.9 million and was comprised of $188.1 million, or 77%, of first lien floating rate loans, $15.5 million, or 6%, of second lien floating rate loans (collectively, the “Loan Portfolio”) and $41.3 million (or 17%) of CLO equity (the “CLO Portfolio” and, together with the Loan Portfolio, the “Investment Portfolio”).

As of December31, 2016, ACSF’s Loan Portfolio was diversified across 149 issuers and 45 industries and its CLO Portfolio was invested in 21 issuers across 15 different collateral managers. The following table depicts the Investment Portfolio activity by investment type for the quarter ended December31, 2016:

Allied World’s Q1 Investment Income Rises 20%; Combined Ratio Worsens to 96%

First, the good news about Allied Worlds 2016 first quarter: investment income grew by nearly 20 percent.

Many other things for Allied World Assurance Company Holdings AG, however, were on a downward trajectory compared to the same period in 2015, including net income, gross written premiums and reinsurance.

Also, Allied Worlds combined ratio worsened to 96 for the quarter, compared to 88.1 in the 2015 first quarter.

Allied World President and CEO Scott Carmilani noted both the investment gains and challenging marketing conditions, but said that the insurer continues to persevere through prudent business practices.

Although market conditions remain challenging, we continue to find attractive opportunities while maintaining our strong focus on risk selection and capital management, Carmilani said in prepared remarks.

Net income for the Swiss property/casualty insurer and reinsurer came in at $74.1 million, or $0.81 per diluted share during Q1, versus $124 million, or $1.27 per diluted share, over the same period last year. Net investment income landed at $53.3 million, a 19.5 percent jump compared to $44.6 million generated in the 2015 first quarter.

Gross written premiums were booked at $863.5 million, 1.9 percent lower than the $880.6 million in gross written premiums produced during Q1 in 2015.

Broken down, Allied Worlds Global Markets insurance segment grew 90.6 percent during the 2016 first quarter versus a year ago, thanks to acquired Asian operations. Allied Worlds North American insurance segment stayed flat, though its reinsurance segment dropped 16 percent year-over-year, thanks to the reduction in property catastrophe risk as well as non-renewal of some property/casualty treaties.

Allied World noted it repurchased more than 1.9 million common shares through April 18 from the beginning of 2016, at a cost of $66.7 million, or $34.42 per share.

Source: Allied World

This article first appeared in Insurance Journals sister publication, Carrier Management.

How to Get a Jump-Start on Your 2016 Taxes

You might have a strong desire to push the e-file button and forget your income taxes until next year. But that could be a big mistake, since your income tax return presents an opportunity to evaluate your financial life. Since the data is freshest right after you complete your tax return, now is the time to take a look at the numbers and see if there are any opportunities for planning your financial life in the coming year. Heres how to start your 2016 tax planning:

[See: How to Reduce Your Tax Bill by Saving for Retirement.]

Look for tax savings opportunities. Saving for retirement can qualify you for tax breaks. If youre young and in a lower tax bracket (less than 25 percent), you could focus on building tax-free investment growth with a Roth account, such as a Roth IRA, Roth 401(k) or Roth 403(b). As your income increases and you jump into a higher tax bracket, your focus may shift to minimizing taxes. You can lower your current income through contributions to your employer retirement plan, such as a traditional 401(k), 403(b) or 457(b).

You can also structure your investments in a tax-efficient manner. If you have a lot of investment income showing up on your return each year, it might make sense to shift some of those ordinary income holdings (like bonds) into IRAs or other retirement accounts that provide tax-deferred growth.

If youre quickly approaching an income threshold that will phase out your child tax credit, student loan interest deduction or real estate losses deduction, you can use the review time to see if you can lower your income to qualify for more tax perks.

[Read: Tax Breaks for People Over 50.]

Examine whether your withholding was done in the most efficient manner. If you ended up with a large tax refund, you may want to request a W-4 from human resources to adjust your tax withholding so that you can actually use those funds throughout the year rather than providing Uncle Sam with an interest-free loan. If you had a large tax bill due, you may also want to adjust your W-4 so that you do not have to scramble to find extra funds when April rolls around.

If you have reportable income from a side job, look into whether you could benefit from opening a solo retirement plan like a SEP IRA or solo 401(k). You may want to consult a tax professional to make sure you open the right retirement account for the 1099-MISC income you earn.

Make sure you take all possible deductions. Finding every adjustment or deduction that you are entitled to could lower your taxes in the future. A little advance planning can sometimes help you qualify for more deductions. Here are some ways you might be able to qualify for additional tax savings:

  • Maximize your contributions to charity.
  • See if there were any personal property taxes paid (like those on vehicles).
  • Consider loading up your health savings account.
  • Look for miscellaneous itemized deductions, such as unreimbursed employee expenses, investment advisory fees, tax preparation fees and safe deposit boxes.

Maximize workplace benefits. Your employer may offer opportunities for tax savings you can benefit from such as flexible spending accounts. FSAs can help cover medical and dependent care costs and save you money on taxes.

Another idea is to pay for your disability insurance premiums with after-tax money. This may sound counterintuitive, since typically you try to maximize tax savings as much as possible. But if you ever do become disabled and have to use the disability policy, the government will allow you to receive the insurance benefits tax-free if you made the premium payments without a tax deduction. The benefit outweighs the negligible current tax benefit.

[Read: 10 Financial Perks of Growing Older.]

Make your income tax return tie into your financial plan. Take a look at the big picture your tax return fits into. Think about the change from last year and what the coming year will look like.

If your financial life is very complicated and provides only a limited benefit for the headache or time invested, take steps to simplify your financial life. If you have many bank accounts, several rental properties or investment transactions that take days to enter on your return (thus increasing your tax preparation fees) with no tangible monetary benefit, its time to make some changes and streamline your situation.

While most people dont look forward to tax season, it can be a useful time of year to evaluate your financial progress. Take some time to review your return to use it as a tool moving forward. With a little advance planning you might be able to trim your tax bill and structure a more tax-efficient financial situation.

Brian Preston and Bo Hanson are fee-only financial planners who host the podcast, The Money-Guy Show.

Legislature votes to repeal Hall tax on investment income

The House and Senate voted Friday to repeal the states Hall tax on investment income, now at 6 percent, over a period the next six years at the rate of 1 percent per year.

From Richard Lockers report:

Gov. Bill Haslam said later he would have preferred a bill with just a one-time tax cut, from the current 6 percent to 5 percent, leaving any additional cuts to future legislatures depending on the states fiscal condition at the time. But he stopped short of saying whether he will sign it into law or veto it.

I would have been much more comfortable with having something that just did it this year, where we know what the states fiscal situation is every time we make that decision. But the General Assembly felt like it was good to put in a point certain (to totally repeal the tax) by 2022, the governor said during a post-session news conference with legislative leaders.

Like everything else, we will take it and study it and over the course of time will come back with a response, he said.

If Haslam approves the Hall tax bill, the tax rate drops from 6 to 5 percent effective with tax year 2016 on tax returns due by April 15, 2017. It also declares that the legislative intent is for the tax be reduced by 1 percentage point annually starting next year. The tax would be eliminated starting with tax year 2022.

The state Department of Revenue says 204,944 taxpayers filed Hall income tax returns for tax year 2014. (Returns for 2015 were due Monday and have not been fully compiled.) The average liability per 2014 return was $1,446. However, its worth noting that the median liability per return was $266, which means that half of the returns filed had a liability of $266 or less, said Revenue Department spokeswoman Kelly Nolan Cortesi.

Taxpayers 65 and older are exempt from the Hall tax if their total income from all sources is $68,000 or less for joint filers and $37,000 or less for single filers. In addition, the first $1,250 in taxable dividend and interest earnings for all single filers and the first $2,500 for all joint filers is tax-exempt.

The tax isnt levied on interest earnned on savings accounts, certificates of deposit, government bonds, credit unions, bank money-market accounts and dividends from bank stock, insurance companies, credit unions and other sources.

The Hall tax, enacted in 1929, generated total revenue of $303.4 million in fiscal year 2014-15 — $197.9 million to the state and $105.5 to cities and counties. Under the law, 62.5 percent of its revenue is retained by the state and 37.5 percent is sent to the municipality where the taxpayer resides — or to the county if the taxpayer lives in an unincorporated area.

Cities and counties that receive the most money opposed the absence of a provision for replacing the lost tax revenue.

Memphis received $14.8 million in Hall tax revenue in fiscal year 2015, Nashville $14.6 million, Knoxville $10 million, Knox County $3.3 million, Germantown $3.1 million, Belle Meade $2.1 million, Shelby County $1.5 million, Collierville $1.2 million and Williamson County $1.2 million, according to the Revenue Department.