PHILADELPHIA, March 31, 2014 /PRNewswire/ -- Aberdeen
Chile Fund, Inc. (NYSE MKT: CH) (the "Fund"), a
closed-end equity fund, today announced that it paid on
March 31, 2014, a quarterly
distribution of $0.31 per share to
all shareholders of record as of March 24,
2014.
Your Fund's policy is to provide investors with a stable
distribution rate. Each quarterly distribution will be paid
out of current income, supplemented by realized capital gains and,
to the extent necessary, paid-in capital.
Under U.S. tax rules applicable to the Fund, the amount and
character of distributable income for each fiscal year can be
finally determined only as of the end of the Fund's fiscal year.
However, under Section 19 of the Investment Company Act of 1940, as
amended (the "1940 Act") and related Rules, the Fund may be
required to indicate to shareholders the source of certain
distributions to shareholders.
The following table sets forth the estimated amounts of the
sources of the distribution for purposes of Section 19 of the 1940
Act and the Rules adopted thereunder. The table has been computed
based on generally accepted accounting principles. The table
includes estimated amounts and percentages for this distribution
and for the cumulative distributions paid relating to fiscal year
to date (01/01/2014 – 02/28/2014),
from the following sources: net investment income; net realized
short-term capital gains; net realized long-term capital gains; and
return of capital. The estimated composition of the distributions
may vary from quarter to quarter because the estimated composition
may be impacted by future income, expenses and realized gains and
losses on securities.
|
Estimated Amounts of
Current Quarterly Distribution per share ($)
|
Estimated Amounts of
Current Quarterly 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
|
$0.0124
|
4%
|
$0.0124
|
4%
|
Net Realized
Short-Term Capital Gains *
|
-
|
-
|
-
|
-
|
Net Realized
Long-Term Capital Gains
|
-
|
-
|
-
|
-
|
Return of
Capital
|
$0.2976
|
96%
|
$0.2976
|
96%
|
Total (per common
share)
|
$0.3100
|
100%
|
$0.3100
|
100%
|
* includes currency gains
**Due to differences between tax reporting and generally accepted
accounting principles, the amount of distribution of $0.34 cents per share declared in December 2013 and paid in January 2014 will be treated as a 2014
distribution for tax purposes and will therefore be included in the
2014 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 2014 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
02/28/2014[1]
|
7.88%
|
Current Fiscal
Period's Annualized Distribution Rate on
NAV[2]
|
N/A*
|
Fiscal Year to
Date (01/01/2014 to 02/28/2014)
|
Cumulative Total
Return on NAV[1]
|
-5.29%
|
Cumulative
Distribution Rate on NAV[2]
|
N/A*
|
[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 February 28, 2014.
*The Funds fiscal period is 01/01/2014 to
02/28/2014 and there were no distributions in this
period.
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 long-term capital gains rate. If the total distributions
made in any calendar year exceed investment company taxable income
and net capital gain, such excess distributed amount would be
treated as ordinary income to the extent of the Fund's current and
accumulated earnings and profits. Distributions in excess of the
earnings and profits would first be a tax-free return of capital to
the extent of the adjusted tax basis in the shares. After such
adjusted tax basis is reduced to zero, the distribution would
constitute capital gain (assuming the shares are held as capital
assets).
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 or hold securities that it would liquidate, for the
purpose of paying the distribution. The Distribution Policy
may, under certain circumstances, cause the amounts of taxable
distributions to exceed the levels required to be distributed under
the Internal Revenue Code (i.e., to the extent the Fund has capital
losses in any taxable year, such losses may be carried forward to
reduce the amount of capital gains required to be distributed in
future years; if distributions in a year exceed the amount
minimally required to be distributed under the tax rules, such
excess will be taxable as ordinary income to the extent loss
carry-forwards reduce the required amount of capital gains
distributions in that year). 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.
Investors should consider a fund's investment objectives,
risks, charges and expenses carefully before investing. A copy of
the prospectus for Aberdeen Chile Fund, Inc. that contains this and
other information about the fund may be obtained by calling
866-839-5205. Please read the prospectus carefully before
investing. Investing in funds involves risk, including possible
loss of principal.
If you wish to receive this information electronically, please
contact InvestorRelations@aberdeen-asset.com
www.aberdeench.com
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SOURCE Aberdeen Chile Fund, Inc.