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 $0.0716 per share. The distribution is payable on June
29, 2012 to shareholders of record as of June 21, 2012. The
ex-distribution date is June 19, 2012.
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 7% 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
August 2009 through May 2012, the annualized rate had been 8%.) 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 and/or capital gain distributions. 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
earnings and profit, 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 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
an investor 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.
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, 2012*
|
Net Asset Value per share
|
|
|
$12.34
|
|
Market Price per share
|
|
|
$11.78
|
|
NAV Distribution Rate (DR)
|
|
|
6.96%
|
|
Market Distribution Rate (DR)
|
|
|
7.29%
|
* 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.
