The Chile Fund, Inc. Announces Payment of Quarterly Distribution
January 15 2010 - 2:10PM
PR Newswire (US)
PHILADELPHIA, Jan. 15 /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 36
cents per share of common stock declared on December 15, 2009,
payable on January 15, 2010, to shareholders of record at the close
of business on December 22, 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 Year Amounts of Year Current
Current to Date to Date Quarterly Quarterly Cumulative Cumulative
Distribution Distribution Distributions Distributions per share ($)
per share (%) per share ($) per share (%) -------------
------------- --------------- --------------- Net Investment Income
$0.01 3% $0.25 23% Net Realized Short-Term Capital Gains $0.00 0%
$0.11 10% Net Realized Long-Term Capital Gains $0.34 94% $0.69 65%
Return of Capital $0.01 3% $0.02 2% Total (per common share) $0.36
100% $1.07 100% 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 12/31/09 16.19%
Current Fiscal Period's Annualized Distribution Rate on NAV(1)
7.65% Year-to Date (1/1/2009 to 12/31/2009) Cumulative Total Return
on NAV 81.25% Cumulative Distribution Rate on NAV(1) 5.69% (1)
Based on the Fund's NAV as of December 31, 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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