PHILADELPHIA, Nov. 26, 2012 /PRNewswire/ -- Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc. (NYSE MKT: ETF) (the "Fund") today announced that its Board of Directors (the "Board") has approved changes to certain investment policies of the Fund.
(Logo: http://photos.prnewswire.com/prnh/20121106/NE07292LOGO )
As a result of these policy changes, the Fund will no longer concentrate its investments in the telecommunications industry and is not required to focus its investment in any industry. The Board approved the removal of the Fund's fundamental policy to invest, under normal market conditions, at least 65% of its total assets in equity securities of telecommunications companies in emerging markets. Because this policy is fundamental, the proposed change requires approval by the Fund's shareholders. The Board approved certain other changes to the Fund's investment policies as set forth below, which will not be effective unless and until shareholder approval of the removal of the Fund's concentration policy is obtained.
The current and amended versions of the Fund's investment policies that are being revised and/or added are as follows:
|
Current |
Amended |
|
Under normal market conditions, at least 80% of the Fund's net assets, plus any borrowings for investment purposes, will be invested in equity and debt securities of emerging markets telecommunications companies and infrastructure companies in the aggregate. As a fundamental policy, under normal market conditions, at least 65% of the Fund's total assets must be invested in equity securities of telecommunications companies in emerging markets. |
As a fundamental policy, under normal market conditions, at least 80% of the Fund's net assets, plus any borrowings for investment purposes, will be invested in equity securities of emerging market smaller company issuers.
An emerging market country is any country determined by the Aberdeen Asset Managers Limited, the Fund's Adviser, to have an emerging market economy, considering factors such as the country's credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries for purposes of this policy can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. Smaller companies for the purposes of this policy can be companies that, at the time of purchase, have a market capitalization of less than $5 billion. |
|
Under normal market conditions, at least 20% (but not more than 24.9%) of the Fund's net assets will be invested in equity and debt securities of companies in the infrastructure industry. |
The Fund may, at the full discretion of the advisor, continue to focus its investments in securities of companies from each of the infrastructure, telecommunications and technology sectors of emerging market countries. The portion of the Fund's portfolio invested in securities of companies from each of such sectors will vary from time to time, based on the Adviser's view of current market conditions. The Fund will not concentrate its investments in any industry or group of industries. |
|
Emerging market securities include securities that are issued by: (a) governments or government-related bodies of emerging market countries; and/or (b) companies or other issuers that (i) are organized under the laws of, or have their principal office in, an emerging market country, (ii) have their principal securities trading market in an emerging market country, (iii) alone or on a consolidated basis derive a significant portion of their annual revenue or assets from goods produced, sales made or services performed in emerging markets countries; and/or (iv) are denominated in the currency of an emerging market. The Fund may also invest without limits in those markets deemed by the Investment Adviser to be "Frontier" markets. | |
|
Based on current market conditions, the Fund will consider "smaller companies" to be companies that, at the time of purchase, have a market capitalization of less than $5 billion. Some companies may outgrow the definition of a smaller company after the Fund has purchased the securities. These companies continue to be considered "smaller" for purposes of the Fund's minimum 80% allocation to smaller company securities. | |
|
The Fund invests in common stock, but may also invest in other types of equity securities, including preferred stock, convertible securities, depositary receipts and rights and warrants to buy common stock. |
Aberdeen Asset Managers Limited ("AAML"), the Fund's investment adviser, and the Board each believe that the proposed changes to the Fund's investment policies are in the best interests of the Fund's shareholders and will permit the Fund to continue to achieve its investment objective. The approved changes will not alter the Fund's investment objective of seeking long-term capital appreciation.
Additional information regarding the change to the Fund's name and investment policies will be included in the proxy statement to seek approval of the removal of the concentration policy described above. A special meeting of shareholders is intended to be held in the first quarter of 2013 to consider the change. No action is required at this time by shareholders of the Fund in connection with these changes.
If the removal of the concentration policy is approved, the Fund will change its name to reflect the new investment policies. The new name of the Fund would be Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., which would be effective upon shareholder approval of the concentration policy change. The Fund would continue to trade on the NYSE MKT under its current ticker symbol (ETF).
If shareholder approval is obtained, AAML will restructure the Fund's portfolio to reflect its new investment policies. The tax impact of the restructuring will depend on the difference between the price at which portfolio securities are sold and the Fund's basis in such securities, offset by capital loss carry forwards. Any net capital gains realized will be distributed prior to the end of 2013, and such distribution will be taxable to tax-paying shareholders. The amount of net capital gains realized and distributed can fluctuate widely and will depend on, among other things, market conditions at the time of the sales. If the portfolio restructuring had occurred on October 31, 2012 and the distribution made on that date, the Fund would have distributed approximately $5.70 per share, all of which consists of capital gains. The amount noted in the preceding sentence is an estimate based on current market conditions and there can be no guarantee that the dividends actually paid will not be materially higher or lower than the estimate.
Important Information
This press release does not constitute the solicitation of a proxy for approval of the change in concentration policy of the Fund or any other matter, which can only be made by means of a proxy statement filed with the Securities and Exchange Commission. When a proxy statement becomes available, shareholders are advised to read it because it contains important information. The proxy statement, when available, will be available for free at the Commission's website www.sec.gov.
Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc. is a closed-end management investment company that seeks long-term capital appreciation by investing primarily in equity securities of telecommunications and infrastructure companies in emerging markets. The Fund's shares are traded on the NYSE MKT under the trading symbol "ETF".
International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and difference in accounting methods.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.
Aberdeen Asset Management is the marketing name in the U.S. for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Limited, Aberdeen Asset Management Ltd. and Aberdeen Asset Management Asia Ltd. (collectively, the 'Aberdeen Advisers'). Each of the Aberdeen Advisers is wholly owned by Aberdeen Asset Management PLC. "Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC.
If you wish to receive information from or about the Fund electronically, please contact InvestorRelations@aberdeen-asset.com
SOURCE Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
