Business & Finance
Business and Finance
Business and Finance
Mon, August 2, 2010
Sun, August 1, 2010
Fri, July 30, 2010 
NEW YORK--([ BUSINESS WIRE ])--Strategic Global Income Fund,Inc. (the aFunda) (NYSE: SGL), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments in US and foreign debt securities, today announced its performance for the fiscal second quarter ended May 31, 2010.
For the fiscal second quarter ended May 31, 2010, the Fund's earnings from net investment income (excluding short-term capital gains) were $1,736,521, equal to $0.10 per share. During this period, the Fund paid monthly distributions (which may be comprised of net investment income, net realized capital gains, and/or return of capital) of $3,805,140, equal to $0.21 per share. Total net realized and unrealized losses from investment activities were $(3,896,520), equal to $(0.21) per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $1,933,468, equal to $0.11 per share; monthly distributions paid (which may be comprised of net investment income, net realized capital gains, and/or return of capital) of $3,454,570, equal to $0.19 per share; and total net realized and unrealized gains from investment activities of $16,399,323, equal to $0.90 per share, for thefiscal second quarter ended May 31, 2009.
For the six months ended May 31, 2010, the Funda™s earnings from net investment income (excluding short-term capital gains) were $4,260,209, equal to $0.23 per share. During this period, the Fund paid monthly distributions (which may be comprised of net investment income, net realized capital gains, and/or return of capital) of $7,597,498, equal to $0.42 per share. Additionally, in December 2009, the Fund paid year-end distributions of short-term capital gains of $734,005, equal to $0.04 per share. Total net realized and unrealized losses from investment activities were $(4,655,838), equal to $(0.25) per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $4,873,827, equal to $0.27 per share; distributions paid (which were comprised of net investment income, net realized capital gains, and/or return of capital) of $6,865,319, equal to $0.38 per share; and total net realized and unrealized gains from investment activities of $15,357,286, equal to $0.84 per share, for the six months ended May 31, 2009.
On May 31, 2010, total net assets of the Fund were $209,281,650. The net asset value per share was $11.46, based on 18,258,828 shares outstanding, which represents an increase of 13.80% from the net asset value per share of $10.07, ($183,834,035 attributable to 18,258,828 shares outstanding) on May 31, 2009.
The Fund adopted a managed distribution policy (aPolicya) in May 1998. Pursuant to the policy as currently in effect, the Fund makes regular monthly distributions at an annualized rate equal to 7% of the Funda™s net asset value, determined as of the last day on which the New York Stock Exchange is open for trading during the first week of that month. (Pursuant to the Policy for distributions paid from June 2005 through July 2009, the annualized rate had been 8%.)
To the extent that the Funda™s taxable income in any fiscal year exceeds the aggregate amount distributed based on a fixed percentage of its net asset value, the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year. To the extent that the aggregate amount distributed by the Fund (based on a percentage of its net assets) exceeds its current and accumulated earnings and profits, the amount of that excess would constitute a return of capital or net realized capital gains for tax purposes. A return of capital may occur, for example, when some or all of the money that shareholders invested in the Fund is deemed to be paid back to shareholders. A return of capital distribution does not necessarily reflect the Funda™s investment performance and should not be confused with ayielda or aincome.a
The Fund estimates the source characteristics of its monthly distributions. The amounts and sources reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funda™s investment experience during the remainder of its fiscal year and may be subject to retroactive changes based on tax regulations. The actual sources of the Funda™s regular monthly distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing. The Fund sends shareholders a Form 1099-DIV (or a financial intermediary should provide an investor with similar information) for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.
Monthly distributions based on a fixed percentage of the Funda™s net asset value may require the Fund to make multiple distributions of long-term capital gains during a single fiscal year. The Fund has received exemptive relief from the Securities and Exchange Commission that enables it to do so. The Funda™s Board receives recommendations from UBS Global Asset Management (Americas) Inc., the Funda™s investment advisor, periodically and no less frequently than annually will reassess the annualized percentage of net assets at which the Funda™s monthly distributions will be made. The Funda™s Board may change or terminate the managed distribution policy at any time without prior notice to Fund shareholders; any such change or termination may have an adverse effect on the market price for the Funda™s shares.
Investors should not draw any conclusions about the Funda™s investment performance from the amount of the monthly distribution or from the terms of the Funda™s managed distribution policy.
