Business & Finance
Mon, January 30, 2012 
NEW YORK--([ BUSINESS WIRE ])--On January 26, 2012, the Stone Harbor Emerging Markets Income Fund (NYSE: EDF) (the aFunda), paid a monthly distribution on its common stock of $0.18 per share to shareholders of record at the close of business on January 13, 2012.
As a general matter, the amount of distributable income for each fiscal period depends on the aggregate gains and losses realized by the Fund during the entire year. Distributions may consist of net investment income, capital gains and return of capital, but the character of these distributions cannot be determined until after the end of the Fundas fiscal year.
However, under the Investment Company Act of 1940, the Fund is required to indicate the source of each distribution to shareholders. The following table sets forth an estimate of the source of the January 26, 2012 distribution and of the distributions paid in the current fiscal year:
| January distribution estimate: | |||||
Per Share ($) | % | ||||
| Net Investment Income | 0.1467 | 81.50 | % | ||
| Net Realized Short-Term Capital Gain | 0.0333 | 18.50 | % | ||
| Net Realized Long-Term Capital Gain | 0.0000 | 0.00 | % | ||
| Return of Capital or other Capital Source | 0.0000 | 0.00 | % | ||
| Total (per common share) | 0.1800 | 100.00 | % | ||
| Fiscal year-to-date cumulative | |||||
| distributions estimates: | |||||
Per Share ($) | % | ||||
| Net Investment Income | 0.3267 | 90.75 | % | ||
| Net Realized Short-Term Capital Gain | 0.0333 | 9.25 | % | ||
| Net Realized Long-Term Capital Gain | 0.0000 | 0.00 | % | ||
| Return of Capital or other Capital Source | 0.0000 | 0.00 | % | ||
| Total (per common share) | 0.3600 | 100.00 | % | ||
Information regarding the Fundas performance & distribution rates is set forth below:
| Fiscal Year is December 1, 2011 to November 30, 2012 | ||
| Current Annualized Distribution Rate (as a Percentage of NAV)^ | 9.96% | |
| Cumulative Distribution Rate (as a percentage of NAV)^ | 1.66% | |
| Cumulative Total Return (in relation to NAV)* | -0.68% | |
| Average Annual Total Return (in relation to change in NAV per Common Share)** | -0.11% | |
^ Based on the Fundas NAV as of December 31, 2011. Cumulative Distribution Rate is the total amount of distributions during the current fiscal year, including the current distribution, divided by NAV.
*Cumulative fiscal year-to-date return is based on the change in NAV (effect of dividends reinvested not included) for the period December 1, 2011 through December 31, 2011.
**Annualized Change in the NAV per common share (effect of dividends reinvested not included) from inception (December 22, 2010 to December 31, 2011).
You should not draw any conclusions about the Fundas investment performance from the amount of this distribution or from the terms of the Fundas Managed Distribution Plan.
The amounts and sources of Distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes.The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fundas investment experience during the remainder of its fiscal year and may be subject to changes 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.
