The Chile Fund, Inc. Announces Payment of Quarterly Distribution
October 09 2009 - 10:14AM
PR Newswire (US)
PHILADELPHIA, Oct. 9 /PRNewswire-FirstCall/ -- The Board of
Directors of The Chile Fund, Inc. (NYSE AMEX: CH) (the "Fund")
announced in July its adoption of a managed distribution policy in
which the Fund will pay quarterly distributions (the "Distribution
Policy"). In connection with the policy, the Fund's Board of
Directors is pleased to report the Fund's distribution of US 35
cents per share of common stock declared on September 4, 2009,
payable on October 9, 2009, to shareholders of record at the close
of business on September 15, 2009. Under U.S. tax rules applicable
to the Fund, the amount and character of distributable income for
each fiscal year can be finally determined only as of the end of
the Fund's fiscal year. However, under Section 19 of the Investment
Company Act of 1940, as amended (the "1940 Act") and related Rules,
the Fund may be required to indicate to shareholders the source of
certain distributions to shareholders. The following table sets
forth the estimated amounts of the sources of the distribution for
purposes of Section 19 of the 1940 Act and the Rules adopted
thereunder. The table includes estimated amounts and percentages
for this distribution and for the cumulative distributions paid
year to date, from the following sources: net investment income;
net realized short-term capital gains; net realized long-term
capital gains; and return of capital. The estimated composition of
the distributions may vary from quarter to quarter because they may
be impacted by future income, expenses and realized gains and
losses on securities. Estimated Estimated Estimated Estimated
Amounts of Amounts of Amounts of Amounts of Current Current Year to
Date Year to Date Quarterly Quarterly Cumulative Cumulative
Distribution Distribution Distributions Distributions per share ($)
per share (%) per share ($) per share (%) ------------ ------------
------------ ------------ Net Investment Income $0.00 0% $0.17 24%
Net Realized Short-Term Capital Gains $0.07 20% $0.11 15% Net
Realized Long-Term Capital Gains $0.00 0% $0.00 0% Return of
Capital $0.28 80% $0.43 61% Total (per common share) $0.35 100%
$0.71 100% 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," "income" or "profit." The
amounts and sources of distributions reported are only estimates
and are not being provided for tax reporting purposes. The final
determination of the source of all distributions in 2009 will be
made after year-end. The actual amounts and sources of the amounts
for tax reporting purposes will depend upon the Fund's investment
experience during the remainder of the fiscal year and may be
subject to change 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. The
following table provides information regarding the Fund's total
return performance based on net asset value (NAV) over various time
periods as well as the Fund's annualized and cumulative
distribution rates. Average Annual Total Return on NAV for the 5
Year Period Ending 9/30/09 16.21% Current Fiscal Period's
Annualized Distribution Rate on NAV(1) 8.31% Year-to Date (1/1/2009
to 9/30/2009) Cumulative Total Return on NAV 55.91% Cumulative
Distribution Rate on NAV(1) 4.21% (1) Based on the Fund's NAV as of
September 30, 2009. While NAV performance may be indicative of the
Fund's investment performance, it does not measure the value of a
shareholder's investment in the Fund. The value of a shareholder's
investment in the Fund is determined by the Fund's market price,
which is based on the supply and demand for the Fund's shares in
the open market. Shareholders should not draw any conclusions about
the Fund's investment performance from the amount of the Fund's
current distributions or from the terms of the Distribution Policy.
The payment of distributions in accordance with the Distribution
Policy may result in a decrease in the Fund's net assets. A
decrease in the Fund's net assets may cause an increase in the
Fund's annual operating expenses and a decrease in the Fund's
market price per share to the extent the market price correlates
closely to the Fund's net asset value per share. The Distribution
Policy may also negatively affect the Fund's investment activities
to the extent that the Fund is required to hold larger cash
positions than it typically would hold or to the extent that the
Fund must liquidate securities that it would not have sold or hold
securities that it would liquidate, for the purpose of paying the
distribution. The Distribution Policy may, under certain
circumstances, cause the amounts of taxable distributions to exceed
the levels required to be distributed under the Code (i.e., to the
extent the Fund has capital losses in any taxable year, such losses
may be carried forward to reduce the amount of capital gains
required to be distributed in future years; if distributions in a
year exceed the amount minimally required to be distributed under
the tax rules, such excess will be taxable as ordinary income to
the extent loss carryforwards reduce the required amount of capital
gains distributions in that year). The Fund's Board of Directors
has the right to amend, suspend or terminate the Distribution
Policy at any time. The amendment, suspension or termination of the
Distribution Policy may affect the Fund's market price per share.
Investors should consult their tax advisor regarding federal, state
and local tax considerations that may be applicable in their
particular circumstances. Circular 230 disclosure: To ensure
compliance with requirements imposed by the U.S. Treasury, we
inform you that any U.S. tax advice contained in this communication
(including any attachments) is not intended or written to be used,
and cannot be used, for the purpose of (i) avoiding penalties under
the Internal Revenue Code or (ii) promoting, marketing or
recommending to another party any transaction or matter addressed
herein. DATASOURCE: The Chile Fund, Inc. CONTACT: Aberdeen Asset
Management Inc. Investor Relations, +1-866-839-5205,
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