The Herzfeld Caribbean Basin Fund, Inc. Announces Quarterly Distribution - Seite 2

The Fund expects that distributions under the MDP will exceed investment income and available capital gains and thus expects that distributions under the MDP will likely include returns of capital for the foreseeable future. A return of capital may occur, for example, when some or all of a stockholder’s investment is paid back to the stockholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Any such returns of capital will decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to maintain the level of distributions called for under its MDP, the Fund may have to sell portfolio securities at a less than opportune time.

The following table sets forth the estimated amounts of the current quarterly distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized capital gains and return of capital. All amounts are expressed per common share.

	Current Distribution		% Breakdown of the Current Distribution		Total Cumulative Distributions for the Fiscal Year to Date		% Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date
Net Investment Income	$0.00		0%		$0.00		0%
Net Realized Short- Term Capital Gains	$0.00		0%		$0.00		0%
Net Realized Long- Term Capital Gains	$0.00		0%		$0.107599		10.66%
Return of Capital	$0.15525		100%		$0.901526		89.34%
Total (per common share)	$0.15525		100%		$1.009125		100%

Average annual total return (in relation to NAV) for the 5-year period ending on May 31, 2020	-3.52	%
Annualized current distribution rate expressed as a percentage of NAV as of May 31, 2020	12.99	%
Annualized current distribution rate expressed as a percentage of PRICE as of May 31, 2020	15.64	%
Cumulative total return (in relation to NAV) for the fiscal year through May 31, 2020	-26.81	%
Cumulative fiscal year distributions as a percentage of NAV as of May 31, 2020	17.86	%

No conclusions should be drawn about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the MDP.