TORONTO, June 18, 2014 /CNW/
- Aberdeen Asia-Pacific Income Investment Company Limited (TSX:
FAP) (the "Company"), a closed-end investment company trading
on The Toronto Stock Exchange, announced today that it has reduced
its monthly distribution from CAD 5.0 cents per ordinary share to
CAD 4.0
cents per ordinary share, commencing with the
distribution payable on July 29, 2014, to all ordinary
shareholders of record as of July 21, 2014. It is the Board's intention
that the monthly distribution rate of CAD 4.0 cents per
ordinary share be maintained for at least 12 months, beginning with
the July 29,
2014 distribution payment. The policy is subject to
regular review at the Board's quarterly meetings. The next review
is scheduled to take place in September 2014.
The investment objective of the Company is to obtain current
income and achieve incidental capital appreciation. The recent cut
in deposit rate to below zero by the European Central Bank ("ECB")
is yet another move by a major central bank to take extraordinary
monetary policy action. This move reinforces the view of Aberdeen
Asset Management Asia Limited, the Investment Manager, that
extraordinarily low interest rates will continue for a considerable
period and impact bond markets globally including the Asia-pacific
region. In this environment of persistently low bond yields, for
government and non-government bonds alike, it is believed that the
reduced distribution of C$0.04 per share per month is more
consistent with the sustainable earnings of the Company.
For the 12 months to May 31, 2014, the Company has paid total
distributions amounting to CAD 60.0 cents per ordinary share.
The policy of the Company's Board of Directors is to maintain a
stable monthly distribution out of net investment income and
realized capital gains supplemented with paid-in capital as
required. This policy is subject to regular review at the Board's
quarterly meetings. The next review is scheduled to take place in
September
2014.
Shareholders with registered addresses in Canada will
receive distributions in Canadian dollars unless they have elected
otherwise. Although a portion of any distribution may be recorded
as a return of capital for financial statement purposes, the full
amount of the distribution will be foreign income for Canadian
income tax purposes. The Company's portfolio is managed by Aberdeen
Asset Management Asia Limited, and it is further advised by
Aberdeen Asset Management Limited and sub-advised by Aberdeen Asset
Managers Limited. The Company's Administrator is Aberdeen Asset
Management Inc.
Information in this press release that is not current or
historical factual information may constitute forward-looking
information within the meaning of securities laws. Implicit in this
information, particularly in respect of future financial
performance and condition of the Company, are factors and
assumptions which, although considered reasonable by the Company at
the time of preparation, may prove to be incorrect. Shareholders
are cautioned that actual results are subject to a number of risks
and uncertainties, including general economic and market factors,
including credit, currency, political and interest-rate risks and
could differ materially from what is currently expected. The
Company has no specific intention of updating any forward-looking
information whether as a result of new information, future events
or otherwise, except as required by law.
Closed-end funds are traded on the secondary market through one
of the stock exchanges. The Company'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 net
asset value (NAV) of the Company's portfolio. There is no assurance
that the Company will achieve its investment objective. Past
performance does not guarantee future results.
If you wish to receive this information
electronically, please contact
InvestorRelations@aberdeen-asset.com.
www.aberdeenfap.com
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SOURCE Aberdeen Asia-Pacific Income Investment Company
Limited