TORONTO, Oct. 9, 2019 /CNW/ -- Aberdeen Asia-Pacific
Income Investment Company Limited (TSX: FAP) (the
"Company"), a closed-end investment company trading on the Toronto
Stock Exchange, is providing information on the estimated
composition of distributions for the period from November 1, 2018 through September 30, 2019.
On May 9, 2019, the Company
announced a reduction in the monthly distribution rate (from
CAD 3.25 cents to CAD 2.25 cents per share per month). The current
monthly distribution of CAD 2.25
cents per share represents an equivalent distribution yield
of approximately 7.9% based on the closing price of the Company's
shares on the Toronto Stock Exchange and 5.9% based on the NAV per
share, in each case, as of the close of business on October 7, 2019. On June
28, 2019, the Company announced certain changes to the
investment policies of the Company that Aberdeen Standard
Investments (Asia) Limited, the
Company's investment manager (the "Investment Manager"), believes
should enable the Company to deliver higher earnings and stronger
risk-adjusted returns through the re-orientation of the Company's
portfolio to higher yielding markets, while also providing greater
portfolio diversification by country and company exposures.
These changes were designed to bring the Company's distributions
more consistent with the sustainable earnings of the Company. While
the Investment Manager continues to reposition the Company's
investment portfolio on an ongoing basis, for the most recent
quarter ended September 30, 2019, the
Company's run rate earnings have increased by approximately 12% and
represent in excess of 90% of the current distribution rate (before
any capital or currency gains).
In an effort to provide more transparency to shareholders
regarding the composition of the distributions of the Company, the
Company is providing a summary of the estimated sources of the
Fund's distributions for the fiscal year to date. The impact of the
policy changes for the full fiscal year will not be entirely
reflected in the amounts shown below.
The following table sets forth the estimated amounts and the
sources of the distributions paid during the Company's fiscal year
to date. The figures in the table below have been computed based on
international financial reporting standards. The table includes
estimated amounts and percentages for the cumulative distributions
paid during the fiscal year to date, from the following sources:
net investment income; net realized short-term capital gains; net
realized long-term capital gains; return of capital; and return of
par. The final composition of the distributions is subject to
change and may be impacted by future income, expenses and realized
gains and losses on securities and currencies. Although a portion
of any distribution may be recorded as a return of capital for
financial statement purposes, the full amount of the distribution
(other than a return of par) will be foreign income for Canadian
income tax purposes.
|
For the Period
November 1, 2018 through September 20, 2019
|
|
Source of Earnings
(estimated)
|
Estimated Amounts
of
Fiscal Year to Date
Cumulative Distributions
per share ($)
|
Estimated Amounts
of
Fiscal Year to Date
Cumulative Distributions
per share (%)
|
|
Net Investment
Income
|
$0.2183
|
71%
|
|
Net Realized Capital
Gains
|
$0.0800
|
26%
|
|
Return of
Par
|
$0.0092
|
3%
|
|
Total (per common
share)
|
$0.3075
|
100%
|
The amounts and sources of distributions set out above are
estimates only and are not being provided for tax reporting
purposes. The final determination of the source of all
distributions for the Company's fiscal year ended October 31, 2019 will be made after the end of
the calendar year 2019. The actual amounts and sources of the
amounts of distributions for tax reporting purposes will depend
upon the Company's results during the remainder of the fiscal year
and are subject to any changes to applicable tax regulations.
Information for tax reporting purposes will be provided to the
Company's shareholders on a Form T5 in February of 2020.
Information in this press release that is not current or
historical factual information may constitute forward-looking
information within the meaning of securities laws. Such
forward-looking information reflects the Investment Manager's
beliefs, estimates and opinion regarding the Company's future
financial performance, projects and opportunities and market
conditions as at today's date. 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.
Aberdeen Standard Investments ("ASI") is the marketing name in
Canada for the following
affiliated entities: Aberdeen Standard Investments Inc. and
Aberdeen Standard Investments (Canada) Limited. Aberdeen Standard Investments
Inc. is registered as a Portfolio Manager in the Canadian provinces
of Ontario, New Brunswick, and Nova Scotia and as an Investment Fund Manager
in the provinces of Ontario,
Quebec, and Newfoundland and Labrador. Aberdeen Standard Investments
(Canada) Limited, is registered as
a Portfolio Manager and Exempt Market Dealer in all provinces and
territories of Canada as well as
an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador. Both entities are indirect wholly
owned subsidiaries of Standard Life Aberdeen PLC.
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. 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
Investor.Relations@aberdeenstandard.com
aberdeenfap.com
SOURCE Aberdeen Asia-Pacific Income Investment Company
Limited