NEW YORK--(BUSINESS WIRE)--Global High Income Fund Inc. (the "Fund") (NYSE:GHI) is 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.
The Fund today announced that its Board of Directors has approved a reduction in the contractual investment advisory and administration fee paid to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor and administrator.
Pursuant to its advisory contract with UBS Global AM (the "Advisory Contract"), the Fund had agreed to pay UBS Global AM an investment advisory and administration fee, accrued weekly and paid monthly, at the annual rate of 1.25% of the Fund's average weekly net assets. UBS Global AM had, since August 2005, contractually waived a portion of the fee it received under the Advisory Contract through a fee reduction “breakpoint,” which reduced the fee so that it was assessed at an annual rate of (1) 1.25% of the Fund’s average weekly net assets on assets up to $200 million, and (2) 1.00% of the Fund’s average weekly net assets on assets above $200 million.
Since August 2010, UBS Global AM had also voluntarily waived from year-to-year compensation otherwise payable to it under the Advisory Contract, most recently waiving compensation so that it was paid at the annual rate of 1.10% of the Fund’s weekly net assets up to $200 million and at the annual rate of 1.00% of the Fund’s average weekly net assets above $200 million.
Effective August 1, 2014, the contractual fee rate under the Advisory Contract is being changed from 1.25% to a flat rate of 1.00% of the Fund's average weekly net assets. Given the new, lower contractual fee rate, the "breakpoint" structure is being removed, and the voluntary year-to-year waiver arrangements are now replaced by the ongoing contractual fee at the 1.00% rate.
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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