U.S. Bancorp Asset Management, Inc. Announces Distributions for Closed-End Funds
August 26 2014 - 4:45PM
Business Wire
U.S. Bancorp Asset Management, Inc. (NYSE:USB) today announced
distributions for two closed-end funds which are expected to
reorganize effective September 8, 2014.
As previously announced, shareholders of each of American
Strategic Income Portfolio Inc. (NYSE:ASP), American Strategic
Income Portfolio Inc.–II (NYSE:BSP), American Strategic Income
Portfolio Inc.–III (NYSE:CSP) and American Select Portfolio Inc.
(NYSE:SLA) (each a "Fund" and, collectively, the "Funds") approved
proposals to merge the Funds into a newly organized closed-end
fund, Diversified Real Asset Income Fund (the “Acquiring Fund”),
which will be managed by Nuveen Fund Advisors, LLC and sub-advised
by Nuveen Asset Management, LLC, both current sub-advisors of the
Funds. The reorganization is expected to become effective on
September 8, 2014.
Regulations require that acquired funds in any reorganization
fully distribute any accumulated undistributed net investment
income (UNII) and realized capital gains prior to effecting the
reorganization.
Accordingly, CSP and SLA are declaring distributions which will
comply with these regulations, payable October 1, 2014 to fund
shareholders of record on September 5, 2014. Following the merger,
Diversified Real Asset Income Fund is expected to declare an
additional distribution, payable October 1, 2014. The total dollar
amount of the pre- and post-merger ordinary income distributions
received on October 1, 2014 will be equal to or greater than each
Fund’s prior monthly dividend.
The following dates apply to distribution declarations for the
following Closed-End Funds:
Record Date
September 5, 2014 Ex-Dividend Date September 3, 2014 Payable
Date October 1, 2014 Reinvest Date October 1, 2014 Per Share
Distribution Amount Short- Long- Term Term
Capital Capital Ordinary
Ticker
Fund Name
Gains Gains Income CSP American Strategic Income
Portfolio Inc. III 0.0000 0.0000 0.0407 SLA American Select
Portfolio Inc. 0.0023 0.0337 0.0476
These distributions are payable in cash or, pursuant to the
Acquiring Fund’s dividend reinvestment plan, reinvested in
additional shares of the Acquiring Fund’s common stock. Under the
Acquiring Fund’s plan, the number of common shares you will receive
will be determined as follows: (1) If the common shares are trading
at or above net asset value at the time of valuation, the Acquiring
Fund will issue new common shares at a price equal to the greater
of (i) net asset value per common share on that date or (ii) 95% of
the market price on that date. (2) If common shares are trading
below net asset value at the time of valuation, the plan agent will
receive the dividend or distribution in cash and will purchase
common shares in the open market, on the New York Stock Exchange or
elsewhere, for the participants’ accounts. It is possible that the
market price for the common shares may increase before the plan
agent has completed its purchases. Therefore, the average purchase
price per share paid by the plan agent may exceed the market price
at the time of valuation, resulting in the purchase of fewer common
shares than if the dividend or distribution had been paid in common
shares issued by the Acquiring Fund. The plan agent will use all
dividends and distributions received in cash to purchase common
shares in the open market within 30 days of the valuation date.
Interest will not be paid on any uninvested cash payments. The plan
provides that if common shares start trading at or above net asset
value before the plan agent has completed its purchases, the plan
agent may cease purchasing common shares in the open market, and
may invest the uninvested portion in new common shares at a price
equal to the greater of (i) net asset value per common share
determined on the last business day immediately prior to the
purchase date or (ii) 95% of the market price on that date.
Minneapolis-based U.S. Bancorp Asset Management, Inc. serves as
investment advisor to the First American Closed-End Funds. A
subsidiary of U.S. Bank National Association, U.S. Bancorp Asset
Management focuses on providing investment management services to
institutional clients, including corporations, public entities and
nonprofits. It has combined assets under management of more than
$51 billion as of July 31, 2014. First American Closed-End Funds
are subadvised by Nuveen Fund Advisors, Inc. and Nuveen Asset
Management, LLC.
U.S. Bank National Association is a separate entity and wholly
owned subsidiary of U.S. Bancorp, the fifth-largest commercial bank
in the United States, and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at www.usbank.com.
Investment products, including shares of closed-end funds, are
not obligations of, or guaranteed by, any bank, including U.S. Bank
or any U.S. Bancorp affiliate, nor are they insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency. An investment in such products involves investment
risk, including possible loss of principal.
U.S. Bancorp Asset Management, Inc.Investor Services,
800-677-3863
US Bancorp (NYSE:USB)
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