PHILADELPHIA,
Nov. 11, 2019
/PRNewswire/ -- Aberdeen Asia-Pacific
Income Fund, Inc. (NYSE American: FAX) (the
"Fund"), a closed-end fund, today announced that it will pay on
November 29, 2019, a distribution of
US $0.0275 per share to all
shareholders of record as of November 21,
2019 (ex-dividend date November
20, 2019). The Fund has reduced its monthly
distribution from $0.035 per share to
$0.0275 per share, commencing with
the distribution payable on April 30,
2019.
Your Fund's distribution policy is to provide investors
with a stable monthly distribution out of current income,
supplemented by realized capital gains and, to the extent
necessary, paid-in capital.
Under U.S. tax rules applicable to the Fund, the amount
and character of distributable income for each fiscal year can be
finally determined only as of the end of the Fund's fiscal year.
However, under Section 19 of the Investment Company Act of 1940, as
amended (the "1940 Act") and related Rules, the Fund may be
required to indicate to shareholders the source of certain
distributions to shareholders.
The following table sets forth the estimated amounts of
the sources of the distribution for purposes of Section 19 of the
1940 Act and the Rules adopted thereunder. The table has been
computed based on generally accepted accounting principles.
The table includes estimated amounts and percentages for the
distribution to be paid on November 29,
2019 from the following sources: net investment income; net
realized short-term capital gains; net realized long-term capital
gains; and return of capital. The estimated composition of
the distributions may vary from month to month because the
estimated composition may be impacted by future income, expenses
and realized gains and losses on securities and
currencies.
|
Estimated
Amounts of
Current
Monthly
Distribution
per share ($)
|
Estimated
Amounts of
Current
Monthly
Distribution
per share (%)
|
Estimated
Amounts of
Fiscal Year
to Date
Cumulative
Distributions
per share ($)
|
Estimated
Amounts of
Fiscal Year
to Date
Cumulative
Distributions
per share (%)
|
Net Investment
Income
|
$0.0146
|
53%
|
$0.0146
|
53%
|
Net Realized
Short-Term Capital Gains*
|
-
|
-
|
-
|
-
|
Net Realized
Long-Term Capital Gains
|
-
|
-
|
-
|
-
|
Return of
Capital
|
$0.0129
|
47%
|
$0.0129
|
47%
|
Total (per common
share)
|
$0.0275
|
100%
|
$0.0275
|
100%
|
*includes currency gains
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 2019 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 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
10/31/20191
|
2.70%
|
Current Fiscal
Period's Annualized Distribution Rate on NAV2
|
7.53%
|
Fiscal Year to Date (11/01/2018 to
10/31/2019)
|
Cumulative Total
Return on NAV1
|
16.13%
|
Cumulative
Distribution Rate on NAV2
|
7.53%
|
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
October 31, 2019.
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.
In the United States,
Aberdeen Standard Investments is the marketing name for the
following affiliated, registered investment advisers:
Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd.,
Aberdeen Standard Investments Australia Ltd., Aberdeen Standard
Investments (Asia) Ltd., Aberdeen
Capital Management, LLC, Aberdeen Standard Investments ETFs
Advisors LLC and Standard Life Investments (Corporate Funds)
Ltd.
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.
If you wish to receive this information
electronically, please contact
Investor.Relations@aberdeenstandard.com
aberdeenfax.com
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SOURCE Aberdeen Asia-Pacific Income Fund, Inc.