Global High Income Fund Inc. — Distribution Characteristics for March 2016
Global High Income Fund Inc. (the "Fund") (NYSE: GHI) today announced its distribution characteristics for the month of March 2016.
The following notice was sent to shareholders today:
Global High Income Fund Inc.
c/o UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, NY 10019
The purpose of this document is to provide you with information that is required to be sent to you as well as additional information that may be of interest to at least some investors.
On March 14, 2016, the Fund's Board of Directors declared a regular monthly distribution of $0.0658 per share. This distribution is payable on March 31, 2016 to shareholders of record as of March 24, 2016.
The ex-distribution date was March 22, 2016.
The Fund adopted a managed distribution policy ("Policy") in December 1999. Pursuant to the Policy as in effect from June 2014 through May 2015, the Fund made 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 was open for trading during the first week of a 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%. Consistent with the Policy, the monthly distribution in any given month may have been comprised of a combination of net investment income, capital gains, and/or a return of capital.
As announced in a press release issued on May 20, 2015, the annualized rate of the Fund's monthly distribution was increased from 6% to 9%, effective with the June 2015 monthly distribution. The Fund's Board maintained the 9% annualized distribution rate for the month of March 2016. As discussed in a press release dated February 24, 2016, the Fund is in the process of being liquidated and expects to make a final liquidating distribution to shareholders in April 2016.
To the extent that the aggregate amount distributed by the Fund under the Policy exceeds its current and accumulated earnings and profits, which is an expected result of the increase discussed above, 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 them. A return of capital distribution does not reflect the Fund's investment performance and should not be confused with "yield" or "income." Of course, if the Fund's earnings and profits in any fiscal year should exceed the aggregate amount distributed under the Policy, no return of capital to the Fund's shareholders would occur, and the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year.
During the current fiscal year which is expected to end in April 2016 upon the liquidation of the Fund, the Fund has made five (5) regular monthly distributions from November 1, 2015 to March 31, 2016, in the aggregate equal $0.3340 per share. The sources of the regular distribution paid during the month and current fiscal year are estimated as follows:
|Estimated source of regular monthly distributions|
Net realized short-
Net realized long-
Return of capital
|Current month||$0.0658||$0.0000 (0%)||$0 (0%)||$0 (0%)||$0.0658 (100%)|
|YTD*||$0.3340||$0.1572 (47%)||$0 (0%)||$0 (0%)||$0.1768 (53%)|
* Fiscal year-to-date.
The Fund periodically issues notices to shareholders and press releases estimating the source characteristics of its monthly distributions. The amounts and sources reported in these materials 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 Fund sends shareholders a Form 1099-DIV (or a financial intermediary should provide a shareholder with similar information) that will tell shareholders how to report these distributions for federal income tax purposes.
If you chose to receive your distributions in cash, a check should have been sent to you or a credit should have been made on your financial intermediary or Fund account statement. If you chose to reinvest your distributions, that statement (or a subsequent one) should indicate the additional shares purchased for your account in full and fractional shares of the Fund's common stock.
You should not draw any conclusions about the investment performance of the Fund's portfolio from the amount of the monthly distribution or from the terms of the Fund's Policy.
Please find below additional information regarding the Fund's performance. Please note that this information is primarily based on the Fund's net asset value based performance, not its market price based performance. Market price based performance for various periods is included in the Fund's most recent report to shareholders and is different.
|Fund performance and distribution rate information|
|Fiscal year-to-date 11/1/2015 to 02/29/2016|
|Year-to-date Cumulative Net Asset Value Return1||-2.07%|
|Cumulative Distribution Rate2||3.05%|
|Preceding five-year period 3/1/2011 to 02/29/2016|
|5 Years Average Annual Total Net Asset Value Return1||-0.83%|
|Average Annual Distribution Rate3||7.35%|
|Current Annualized Distribution Rate4||8.99%|
|1||The Fund's net asset value ("NAV") returns assume, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the payable dates.|
|2||Cumulative Distribution Rate for the Fund's fiscal period (November 1, 2015 through February 29, 2016) measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund's NAV as of February 29, 2016.|
|3||Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period.|
|4||The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Fund's NAV as of February 29, 2016|
Please refer to the chart below for information about the Fund's historical NAVs, change in NAVs, total returns and distributions paid. Performance data assumes reinvestment of distributions. Please note that the table below reflects the characterization of distributions on an accounting basis for a Fund's fiscal year-end period, which may or may not match the amounts reported to a shareholder on a tax basis in a tax Form 1099 to shareholders given (1) the differences between the periods measured and (2) accounting/tax reporting differences.
(More information regarding accounting/tax reporting differences may be found in the notes to the financial statements included in the Fund's shareholder reports.)
|Since inception (October 8, 1993) annualized total return: 8.11%|
|1||Figures are fiscal year to date, November 1, 2015 through February 29, 2016, and this period's final distribution characterization will not be completed until after the liquidation of the Fund (expected in April 2016).|
|2||Distribution rate calculated by taking the total distributions paid within the period divided by average daily NAV for the period.|
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).
Important Note: As discussed in a press release dated February 24, 2016, the Fund is in the process of being liquidated and expects to make a final liquidating distribution to shareholders in April 2016.
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