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 debt securities of emerging market debt issuers, today announced its performance for the second quarter and fiscal year-to-date ended April 30, 2014.
For the second quarter ended April 30, 2014, the Fund's earnings from net investment income (excluding short-term capital gains) were $3,039,640, equal to $0.14 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 $4,242,795, equal to $0.20 per share. Total net realized and unrealized gains from investment activities were $12,639,186, equal to $0.59 per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $3,767,451, equal to $0.17 per share; monthly distributions paid (which were comprised of net investment income and/or return of capital) of $5,121,584, equal to $0.24 per share; and total net realized and unrealized gains from investment activities of $590,526, equal to $0.03 per share, for the second quarter ended April 30, 2013.
For the six months ended April 30, 2014, the Fund’s earnings from net investment income (excluding short-term capital gains) were $6,146,495, equal to $0.28 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 $8,600,028, equal to $0.40 per share. Total net realized and unrealized losses from investment activities were $(8,172,188), equal to $(0.38) per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $8,531,896, equal to $0.40 per share; monthly distributions paid (which were comprised of net investment income and/or return of capital) of $10,273,396, equal to $0.48 per share; and total net realized and unrealized gains from investment activities of $5,419,592, equal to $0.25 per share, for the six months ended April 30, 2013.
On April 30, 2014, total net assets of the Fund were $247,010,982. The net asset value per share was $11.44, based on 21,591,836 shares outstanding, which represents a decrease of 16.01% from the net asset value per share of $13.62 ($294,045,164 attributable to 21,591,836 shares outstanding) on April 30, 2013.
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 May 2014, the annualized rate had been 7%.) 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 gain 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 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 the remainder of its entire fiscal year and may be subject to changes based on tax regulations. The Fund will send 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 Fund 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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