NEW
YORK, April 8, 2022 /PRNewswire/ -- Stone Harbor
Emerging Markets Total Income Fund (NYSE: EDI), a closed-end
fund, today announced that it will remove its managed distribution
plan, effective with the May distribution. The Fund intends to
maintain its level payout at the current distribution rate of
$0.07 per share. The managed
distribution plan was determined not to be necessary at the current
time, given that the Fund's principal investment strategy is not
focused on generating capital gains, and that elimination of the
plan and its associated requirements may reduce certain Fund
expenses.
The Fund also announced the declaration of a monthly
distribution of $0.07 per common
share, payable on the date noted below. Based on the Fund's current
share price of $7.24 and net asset
value per share of $6.61 (as of close
on April 7, 2022), the distributions
represent an annualized distribution rate of 11.60% and 12.71%,
respectively.
The following dates apply to the distributions declared:
Amount of
Distribution
|
Ex-Date
|
Record
Date
|
Payable
Date
|
$0.07
|
May 9, 2022
|
May 10, 2022
|
May 20, 2022
|
Effective April 11, 2022, the Fund
will begin trading as the Virtus Stone Harbor Emerging Markets
Total Income Fund. The Fund's CUSIP (86164W100) and ticker (EDI)
will not change.
As of the date of this release, the Fund's shares are trading at
a premium to net asset value ("NAV"). When the Fund is trading at a
premium, shareholders that participate in the Fund's Dividend
Reinvestment Plan (the "Plan") will generally have their
distributions invested in newly issued common shares at a discount
to the Fund's market price, as set forth in more detail in the
Plan. Additional information about the Plan is included in the
Fund's annual and semi-annual reports to shareholders. Shareholders
who hold their shares through brokers or other financial
intermediaries should discuss with their financial intermediaries
whether it would be beneficial to participate in the Fund's
Plan.
The Fund estimates that it has distributed more than its income
and net realized capital gains; therefore, a portion of your
distribution may be a return of capital. A return of capital may
occur, for example, when some or all of the money that you invested
in the Fund is paid back to you. A return of capital distribution
does not necessarily reflect the Fund's investment performance and
should not be confused with "yield" or "income." You should not
draw any conclusions about the Fund's investment performance from
the amount of this distribution or from the terms of the Fund's
managed distribution plan.
This press release is not for tax reporting purposes but is
being provided to announce the amount of the Fund's distributions
that have been declared by the Board of Directors. In 2023, after
definitive information is available, the Fund will send
shareholders a Form 1099-DIV, if applicable, specifying how the
distributions paid by the Fund during the prior calendar year
should be characterized for purposes of reporting the distributions
on a shareholder's tax return (e.g., ordinary income, capital gain
or return of capital). The actual amounts and sources of the
amounts for tax reporting purposes will depend upon the Fund's
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.
About the Fund
Stone Harbor Emerging Markets Total Income Fund is a
non-diversified, closed-end management investment company that is
managed by Stone Harbor Investment Partners, LLC ("Stone Harbor"). The Fund's primary investment
objective is to maximize total return, which consists of income and
capital appreciation on its investments in emerging markets
securities. There is no assurance that the Fund will achieve its
investment objective.
The Fund seeks to achieve its investment objective by investing
at least 80% of its net assets (plus borrowings for investment
purposes) in emerging markets debt, which includes fixed income
securities and other instruments, including derivatives, that are
economically tied to emerging market countries, that are
denominated in the predominant currency of the local market of an
emerging market country or whose performance is linked to those
countries' markets, currencies, economies or ability to repay
loans. The Fund normally expects to invest up to 20% of its total
assets in emerging markets equity, which includes securities issued
by either single country or regional exchange-traded funds, common
stocks, preferred stocks, other equity securities and other
instruments (including derivatives) that are economically tied to
the equity markets of emerging market countries, that are
denominated in the predominant currency of the local market of an
emerging market country or whose performance is linked or otherwise
related to those countries' markets, currencies, or economies. A
security or instrument is economically tied to an emerging market
country if it is principally traded on the country's securities
markets or if the issuer is organized or principally operates in
the country, derives a majority of its income from its operations
within the country or has a majority of its assets within the
country.
About Stone Harbor
Stone Harbor Investment Partners, LLC, an affiliated manager of
Virtus Investment Partners, is a global institutional fixed-income
investment manager specializing in credit and asset allocation
strategies. The firm manages institutional clients' assets in a
range of investment strategies including emerging markets debt,
global high yield, bank loans, as well as multi-sector credit
products including unconstrained and total return approaches. The
firm's investment strategies are based on fundamental insights,
derived from a combination of proprietary research and the in-depth
knowledge and specialized experience of the firm's team. Founded in
2006, it is based in New York City
with additional offices in London
and Singapore.
About Virtus Investment Partners,
Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors.
The company provides investment management products and services
through its affiliated managers and select subadvisers, each with a
distinct investment style, autonomous investment process, and
individual brand. For more information, visit virtus.com.
For more complete information, please call 1-212-548-1043 or
visit the Fund's website, www.shiplpcef.com.
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SOURCE Stone Harbor Emerging Markets Total Income Fund