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.
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SOURCE: Aberdeen Asia-Pacific Income Investment Company Limited
For further information:
Aberdeen Asset Management Inc., Investor Relations, 800-992-6341, InvestorRelations@aberdeen-asset.com