Global High Income Fund Inc. - Distribution Declaration and Updated Price & Distribution Rate Information
NEW YORK--(BUSINESS WIRE)--
Global High Income Fund Inc. (the "Fund") (NYSE:GHI), a non-diversified,
closed-end management investment company seeking high current income and
secondarily, capital appreciation through investments primarily in
securities of emerging market debt issuers, today announced that the
Fund's Board of Directors declared a regular monthly distribution of
$0.0589 per share. The distribution is payable on June 30, 2014 to
shareholders of record as of June 19, 2014. The ex-distribution date is
June 17, 2014.
The Fund adopted a managed distribution policy ("Policy") in December
1999. Pursuant to the Policy as currently in effect, the Fund makes
regular monthly distributions at an annualized rate equal to 6% of the
Fund's net asset value, determined as of the last day on which the New
York Stock Exchange is open for trading during the first week of that
month. (Pursuant to the Policy with respect to distributions paid from
June 2012 through the monthly distribution for May 2014, the annualized
rate had been 7%, which, consistent with the policy, in any given month
may have been comprised of a combination of net investment income,
short- and/or long-term capital gains, and/or a return of capital.)
Based on information available at this time, the Fund estimates that
portions of the current regular monthly distribution may be comprised of
net investment income, short- and/or long-term capital gains, and/or a
return of capital. Further information regarding the estimated sources
of the current regular monthly distribution will be provided around
month-end; however, information provided will be an estimate and subject
to change based on the Fund's investment experience during the remainder
of its fiscal year.
The Fund's Board receives recommendations from UBS Global Asset
Management (Americas) Inc., the Fund's investment advisor, periodically
and no less frequently than annually will reassess the annualized
percentage of net assets at which the Fund's monthly distributions will
be made. The Fund's Board may change or terminate the managed
distribution policy at any time without prior notice to Fund
shareholders; any such change or termination may have an adverse effect
on the market price for the Fund's shares.
To the extent that the Fund's taxable income in any fiscal year exceeds
the aggregate amount distributed based on a fixed percentage of its net
asset value, the Fund would make an additional distribution in the
amount of that excess near the end of the fiscal year. To the extent
that the aggregate amount distributed by the Fund based on a fixed
percentage of its net asset value exceeds its current and accumulated
undistributed earnings and profits, the amount of that excess would
constitute a return of capital or net realized capital gains for tax
purposes. A return of capital may occur, for example, when some or all
of the money that shareholders invested in the Fund is deemed to be paid
back to shareholders. A return of capital distribution does not
necessarily reflect the Fund's investment performance and should not be
confused with "yield" or "income."
The Fund estimates the source characteristics of its monthly
distributions. The amounts and sources reported are only estimates and
are not being provided for tax reporting purposes. The actual amounts
and sources of the amounts for accounting and tax reporting purposes
will depend upon the Fund's investment experience during its entire
fiscal year and may be subject to retroactive changes based on tax
regulations. The actual sources of the Fund's regular monthly
distributions may be net investment income, net realized capital gains,
return of capital or a combination of the foregoing. The Fund sends
shareholders a Form 1099-DIV (or a financial intermediary should provide
a shareholder with similar information) for the calendar year that will
tell shareholders how to report these distributions for federal income
Monthly distributions based on a fixed percentage of the Fund's net
asset value may require the Fund to make multiple distributions of
long-term capital gains during a single fiscal year. The Fund has
received exemptive relief from the Securities and Exchange Commission
that enables it to do so.
Investors should not draw any conclusions about the Fund's investment
performance from the amount of the monthly distribution or from the
terms of the Fund's managed distribution policy.
Characteristics as of May 31, 2014*
Net Asset Value per share
Market Price per share
NAV Distribution Rate (DR)
Market Distribution Rate (DR)
Net asset value (NAV), market price and distribution rates will
fluctuate. NAV distribution rate (DR) is calculated by multiplying
the current month's regular monthly distribution by 12 and dividing
by the month-end net asset value. Market distribution rate (DR) is
calculated by multiplying the current month's regular monthly
distribution by 12 and dividing by the month-end market price.
Any performance information reflects the deduction of the Fund's fees
and expenses, as indicated in its shareholder reports, such as
investment advisory and administration fees, custody fees, exchange
listing fees, etc. It does not reflect any transaction charges that a
shareholder may incur when (s)he buys or sells shares (e.g., a
shareholder's brokerage commissions).
Investing in the Fund entails specific risks, such as interest rate
risk and the risks associated with investing in the securities of
issuers in emerging market countries.The value of the Fund's
investments in foreign securities may fall due to adverse political,
social and economic developments abroad and due to decreases in foreign
currency values relative to the US dollar.Investments in
emerging market issuers may decline in value because of unfavorable
government actions, greater risks of political instability or the
absence of accurate information about emerging market
issuers. Further detailed information regarding the Fund, including a
discussion of principal objectives, principal investment strategies and
principal risks, may be found in the fund overview located at http://www.ubs.com/closedendfundsinfo.
You may also request copies of the fund overview by calling the
Closed-End Funds Desk at 888-793 8637.
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Source: Global High Income Fund Inc.