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The quarterly dividend distribution reflects a managed distribution policy of the
Fund. The policy is intended to provide shareholders with a relatively stable cash flow and
reduce or eliminate the Fund's market
price discount to its net asset value per share. Under the current policy,
distributions of approximately 5% of the Fund’s net asset value per share
on an annual basis are paid primarily from ordinary income and any net capital gains, with
the balance representing return of capital. The amount of the distribution may vary depending on the net asset value per share at the time of
declaration and the policy may be changed or discontinued without notice.
The Board's current policy is to provide investors with a stable quarterly
distribution out of current income, supplemented by realized capital gains, and to the
extent necessary, paid-in capital. The Fund is subject to U.S. corporate,
tax, and securities laws. Under U.S. tax accounting rules, the amount of
distributable net income is determined on an annual basis and is dependent
during the fiscal period on the aggregate gains and losses realized by the Fund
and, to a lesser extent, the actual exchange rate between the U.S. dollar and
the currencies in which Fund assets are denominated. Therefore, the exact amount
of distributable income can only be determined as of the end of the Fund's
fiscal period. Under the U.S. Investment Company Act of 1940, however, the
Fund is required to indicate the source of each distribution to
shareholders. The Fund estimates the extent to which distributions for the fiscal
period commencing January 1 each year, including the distributions paid
quarterly, are comprised approximately of net investment income and
approximately from paid-in capital. This estimated distribution composition may
vary from quarter to quarter because it may be materially impacted by future
realized gains and losses on securities and fluctuations in the value of currencies in
which Fund assets are denominated. In January after each fiscal period, a
Form 1099 DIV will be sent to shareholders, which will state the amount and
composition of distributions and provide information with respect to their
appropriate tax treatment.
The Fund's Dividend Reinvestment Plan is a
very effective way to add to your holding because quarterly dividend
distributions are reinvested without charge, which can contribute importantly to
growing your investment over time. Please click
here for the Terms and Conditions of the 2008 Restated Dividend Reinvestment
Plan of Global Income Fund, Inc.
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