Strategic Global Income Fund, Inc. - Reports Earnings
NEW YORK--(BUSINESS WIRE)--
Strategic Global Income Fund, Inc. (the "Fund") (NYSE:SGL), a
non-diversified, closed-end management investment company seeking high
current income and secondarily, capital appreciation through investments
in US and foreign debt securities, today announced its performance for
the second quarter and fiscal year-to-date ended May 31, 2014.
For the second quarter ended May 31, 2014, the Fund's earnings from net
investment income (excluding short-term capital gains) were $1,672,052,
equal to $0.09 per share. During this period, the Fund paid monthly
distributions (which may be comprised of net investment income, net
realized capital gains, and/or return of capital) of $2,884,895, equal
to $0.16 per share. Total net realized and unrealized gains from
investment activities were $3,462,644, equal to $0.19 per share, for the
second quarter ended May 31, 2014. This compares to earnings from net
investment income (excluding short-term capital gains) of $2,057,857,
equal to $0.11 per share; monthly distributions paid (which were
comprised of net investment income and return of capital) of $3,142,344,
equal to $0.17 per share; and total net realized and unrealized losses
from investment activities of $(4,205,187), equal to $(0.23) per share,
for the second quarter ended May 31, 2013.
For the six months ended May 31, 2014, the Fund's earnings from net
investment income (excluding short-term capital gains) were $3,625,233,
equal to $0.20 per share. During this period, the Fund paid monthly
distributions (which may be comprised of net investment income, net
realized capital gains and/or return of capital) of $5,747,879, equal to
$0.31 per share. Total net realized and unrealized gains from investment
activities were $5,867,509, equal to $0.31 per share, for the six months
ended May 31, 2014. This compares to earnings from net investment income
(excluding short-term capital gains) of $4,702,262 equal to $0.26 per
share; monthly distributions paid (which were comprised of net
investment income and return of capital) of $6,333,987, equal to $0.35
per share; and total net realized and unrealized losses from investment
activities of $(6,788,819), equal to $(0.38) per share, for the six
months ended May 31, 2013. Additionally, in December 2012, the Fund paid
year-end distributions of long-term capital gains of $2,083,332, equal
to $0.11 per share.
On May 31, 2014, total net assets of the Fund were $193,929,788. The net
asset value per share was $10.62, based on 18,258,828 shares
outstanding, which represents a decrease of 4.50% from the net asset
value per share of $11.12, ($203,105,467 attributable to 18,258,828
shares outstanding) on May 31, 2013.
The Fund adopted a managed distribution policy ("Policy") in May 1998.
Pursuant to the policy as currently in effect, the Fund makes regular
monthly distributions at an annualized rate equal to 5% 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
2011 through the monthly distribution for May 2014, the annualized rate
had been 6%, 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.) An investor
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.
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
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 periodically issues notices to shareholders and press releases
estimating 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 the remainder of its 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 tax purposes.
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. 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.
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,
credit and the risks associated with investing in the securities of
non-US issuers, including those located 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. 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: Strategic Global Income Fund, Inc.