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MarketScreener Homepage  >  Funds  >  Nyse MKT  >  Aberdeen Emerging Markets Eq.    AEF

ABERDEEN EMERGING MARKETS EQ.

(AEF)
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Aberdeen Chile Fund, Inc. : Announces Payment Of Quarterly Distribution

09/28/2016 | 04:02pm EST

PHILADELPHIA, Sept. 28, 2016 /PRNewswire/ -- Aberdeen Chile Fund, Inc. (NYSE MKT: CH) (the "Fund"), a closed-end equity fund, today announced that it paid on September 28, 2016, a quarterly distribution of $0.14 per share to all shareholders of record as of September 21, 2016.

http://photos.prnewswire.com/prnvar/20121106/NE07292LOGO

On September 9, 2016 the Fund announced that its Board of Directors (the "Board") concluded that it is in the best interest of shareholders to suspend the Fund's managed distribution policy (the "Policy") following today's distribution. The Fund will continue to make distributions of net investment income and net realized capital gains as required to maintain its "regulated investment company" qualification under the Internal Revenue Code of 1986, as amended, and to avoid imposition of the excise tax. The suspension of the Policy does not impact the Fund's objective of seeking total return, consisting of capital appreciation and income, through investments primarily in Chilean securities. During the regular review of the Policy by the Board, the Board considered, among other things, the Policy's potential to increase liquidity for common shareholders and the potential such distributions would have, if any, on narrowing the Fund's discount to net asset value ("NAV"). The Board will continue to monitor the discount at which Fund shares recently have tended to trade and to take action, as appropriate, including repurchasing shares in open-market transactions. In determining to suspend the Policy, the Board noted that the level of unrealized gains available in the Fund to support the Policy has declined and a greater portion of recent distributions consist of return of capital.

Your Fund's policy had been to provide investors with a stable distribution rate. Each quarterly distribution was paid out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.

Under U.S. tax rules applicable to the Fund, the amount and character of distributable income for each fiscal year can be finally determined only as of the end of the Fund's fiscal year. However, under Section 19 of the Investment Company Act of 1940, as amended (the "1940 Act") and related Rules, the Fund may be required to indicate to shareholders the source of certain distributions to shareholders.

The following table sets forth the estimated amounts of the sources of the distribution for purposes of Section 19 of the 1940 Act and the Rules adopted thereunder. The table has been computed based on generally accepted accounting principles. The table includes estimated amounts and percentages for this distribution and for the cumulative distributions paid relating to fiscal year to date (01/01/2016 - 08/31/2016), from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital. The estimated composition of the distributions may vary from quarter to quarter because the estimated composition may be impacted by future income, expenses and realized gains and losses on securities and currencies.

                             Estimated                     Estimated                       Estimated                         Estimated
                    Amounts of Current Quarterly  Amounts of Current Quarterly   Amounts of Fiscal Year to Date    Amounts of Fiscal Year to Date
                     Distribution per share ($)    Distribution per share (%)    Cumulative Distributions per      Cumulative Distributions per
                                                                                           share ($)**                      share (%) **
                   ----------------------------- -----------------------------  -------------------------------   -------------------------------

    Net Investment
     Income                              $0.0266                            19%                          $0.0798                                19%
    --------------                       -------                            ---                           -------                                ---

    Net Realized
     Short-Term
     Capital
     Gains*                                    -                             -                                -                                 -
    ------------                             ---                           ---                              ---                               ---

    Net Realized
     Long-Term
     Capital Gains                             -                             -                                -                                 -
    --------------                           ---                           ---                              ---                               ---

    Return of
     Capital                             $0.1134                            81%                          $0.3402                                81%
    ---------                            -------                            ---                           -------                                ---

    Total (per
     common share)                       $0.1400                           100%                          $0.4200                               100%
    --------------                       -------                            ---                           -------                                ---

* includes currency gains
**Due to differences between tax reporting and generally accepted accounting principles, the amount of distribution of $0.15 per share declared in December 2015 and paid in January 2016 will be treated as a 2016 distribution for tax purposes and will therefore be included in the 2016 Form 1099-DIV.

The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

Shareholders should not draw any conclusions about the Fund's investment performance from the amount of the Fund's current distributions or from the terms of the distribution policy (the "Distribution Policy").

The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The final determination of the source of all distributions in 2016 will be made after year-end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of the fiscal year and may be subject to change based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

The following table provides information regarding the Fund's total return performance based on net asset value (NAV) over various time periods compared to the Fund's annualized and cumulative distribution rates.

    Average Annual Total Return on
     NAV for the 5 Year Period
     Ending 08/31/2016(1)                              (6.97%)
    ------------------------------                      ------

    Current Fiscal Period's
     Annualized Distribution Rate
     on NAV(2)                                           7.72%
    -----------------------------                         ----

    Fiscal Year to Date (01/01/2016 to 08/31/2016)
    ----------------------------------------------

    Cumulative Total Return on
     NAV(1)                                             17.66%
    --------------------------                           -----

    Cumulative Distribution Rate on
     NAV(2)                                              3.86%
    -------------------------------                       ----

(1)Return data is net of all fund expenses and fees and assumes the reinvestment of all distributions reinvested at prices obtained under the Fund's dividend reinvestment plan.
(2 )Based on the Fund's NAV as of August 31, 2016.

While NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.

Pursuant to an exemptive order granted by the Securities and Exchange Commission on March 30, 2010, the Fund may distribute any long-term capital gains more frequently than the limits provided in Section 19(b) under the 1940 Act and Rule 19b-1 thereunder. Therefore, distributions paid by the Fund during the year may include net income, short-term capital gains, long-term capital gains and/or a return of capital. Net income dividends and short-term capital gain dividends, while generally taxable at ordinary income rates, may be eligible, to the extent of qualified dividend income earned by the Fund, to be taxed at a lower rate not to exceed the maximum rate applicable to your long-term capital gains. Distributions made in any calendar year in excess of investment company taxable income and net capital gain are treated as taxable ordinary dividends to the extent of undistributed earnings and profits, and then as a return of capital that reduces the adjusted basis in the shares held. To the extent return of capital distributions exceed the adjusted basis in the shares held, capital gain is recognized with a holding period based on the period the shares have been held at the date such amount is received. Shareholders should not draw any conclusions about the Fund's investment performance from the terms of the distribution policy. The final determination of the source of all distributions will be made after year-end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the fiscal year and may be subject to change based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report distributions for federal income tax purposes.

The payment of distributions in accordance with the Distribution Policy may result in a decrease in the Fund's net assets. A decrease in the Fund's net assets may cause an increase in the Fund's annual operating expense ratio and a decrease in the Fund's market price per share to the extent the market price correlates closely to the Fund's net asset value per share. The Distribution Policy may also negatively affect the Fund's investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the distribution. The Fund's Board of Directors has the right to amend, suspend or terminate the Distribution Policy at any time. The amendment, suspension or termination of the Distribution Policy may affect the Fund's market price per share. Investors should consult their tax advisor regarding federal, state and local tax considerations that may be applicable in their particular circumstances.

Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S. Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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 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.

If you wish to receive this information electronically, please contact InvestorRelations@aberdeen-asset.com

aberdeench.com

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/aberdeen-chile-fund-inc-announces-payment-of-quarterly-distribution-300335828.html

SOURCE Aberdeen Chile Fund, Inc.


© PRNewswire 2016
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