Aberdeen Standard Global Infrastructure Income Fund Announcement Of Stable Distribution Plan Information And Portfolio Update
08/31/2020 - 04:45 PM
PHILADELPHIA , Aug. 31, 2020 /PRNewswire/ -- Shares of Aberdeen Standard Global Infrastructure Income Fund (the "Fund") (NYSE: ASGI), a closed-end management investment company, commenced trading on July 29 , 2020. Today, the Fund is announcing its initial monthly distribution, payable on October 9, 2020 , and the terms of its Stable Distribution Plan. Under its Stable Distribution Plan, the Fund will pay a fixed monthly distribution at an annualized rate of 6.5% on the initial public offering price of $20.00 for the 12 months ending September 30, 2021 .
In connection with the above plan, the first monthly distribution in the amount of US $0.1083 per share will be paid on October 9, 2020 to shareholders of record at the close of business on October 2, 2020 (ex-dividend date of October 1, 2020 ).
The Fund intends to distribute monthly all or a portion of its net investment income, including current gains, to common shareholders. The Fund relies on exemptive relief from the U.S. Securities and Exchange Commission that allows the Fund to distribute long-term capital gains as frequently as monthly in any one taxable year. The distributions will be made from net investment income, net realized capital gains and, to any extent necessary, return of capital.
Portfolio Update 87% invested in infrastructure equity investments. Under normal circumstances, the Fund will invest at least 10% , and currently intends to generally invest closer to 25% , of its total assets, in infrastructure assets through private transactions. As a result of the relatively limited availability of private infrastructure opportunities, the Fund may have a lower percentage of its total assets invested in private infrastructure opportunities, and a higher percentage of its assets invested in publicly listed infrastructure issuers, during the initial 24 months following inception.
On August 28, 2020 , the Fund's net assets were $180.0 million $20.33 .
Examples of infrastructure assets include, but are not limited to, transportation assets (e.g., toll roads, bridges, tunnels, parking facilities, railroads, rapid transit links, airports, refueling facilities and seaports), utility assets (e.g., electric transmission and distribution lines, power generation facilities, gas and water distribution facilities and sewage treatment plants), communications assets (e.g., wireless telecommunication services, cable and satellite networks, broadcast and wireless towers), energy infrastructure assets (e.g., pipelines) and social assets (e.g., courthouses, hospitals, schools, correctional facilities, stadiums and subsidized housing). As of August 27, 2020 the Fund's portfolio is invested as follows:
Sector
% Market Value
Industrials
30.82
Utilities
24.28
Communication Services
15.26
Cash Equivalent
13.46
Energy
7.34
Real Estate*
5.48
Materials
2.08
Consumer Discretionary
1.27
*The Real Estate sector includes infrastructure related REITs, including wireless towers.
Issue Region
% Market Value
North America*
53.37
Europe
30.36
Asia Pacific
10.73
Latin America
5.54
*Includes cash equivalent of 13.46% .
Infrastructure investments have historically offered attractive characteristics such as long operational life, cash flows linked to inflation, lower correlation and volatility compared to broader asset classes, and potentially resilient sources of income due to their essential function supporting society. In our view, the global pandemic caused by the novel coronavirus COVID-19 has shown the crucial importance of communications infrastructure to enable workers to work effectively from home. Over the next several decades, we expect global spending on infrastructure to increase. Spending in developed market countries will be driven by the need to repair and upgrade infrastructure in order to preserve their international competiveness. In emerging market countries, spending will be driven by the need to build infrastructure in order to facilitate growth of their aspirational economies.
IRS and SEC Distribution Disclosure
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 has been computed based on generally accepted accounting principles. The table includes estimated amounts and percentages relating to the fiscal year beginning 10/01/2020 – 10/09/2020 for this distribution 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 month to month because the estimated composition may be impacted by the frequency and timing of dividend income received, expenses and realized gains and losses on securities and currencies.
Estimated Amounts of Current Monthly Distribution per share ($)
Estimated Amounts of Current Monthly Distribution per share (%)
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
-
-
-
-
Net Realized Short-Term Capital Gains*
-
-
-
-
Net Realized Long-Term Capital Gains
-
-
-
-
Return of Capital
$0.1083
100%
$0.1083
100%
Total (per common share)
$0.1083
100%
$0.1083
100%
*
Includes currency gains.
**
For the Fiscal year beginning October 1, 2020.
The Fund estimates that it has distributed more than its income and 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."
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 "Distribution Policy").
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. The final determination of the source of all distributions in 2020 and 2021 will be made after the relevant 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 the Fund's total return performance based on net asset value (NAV) over various time periods compared to the Fund's annualized and cumulative distribution rates.
Average Annual Total Return on NAV for the 5 Year Period Ending 07/31/20201,2
(0.35% )
Current Fiscal Period's Annualized Distribution Rate on NAV3
n/a4
Fiscal Year to Date (7/29/2020 to 07/31/2020)
Cumulative Total Return on NAV1
(0.35% )
Cumulative Distribution Rate on NAV2
n/a4
1
Return data is net of all fund expenses and fees and assumes the reinvestment of all distributions reinvested at prices obtained under the Fund's dividend reinvestment plan.
2
The Fund launched within the past 5 years; the performance and distribution rate information presented reflects data from inception (July 29, 2020) through July 31, 2020.
3
Based on the Fund's NAV as of July 31, 2020.
4
The Fund's fiscal period to date is July 29, 2020 through July 31, 2020 and there were no distributions during this period.
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.
Pursuant to an exemptive order granted by the Securities and Exchange Commission on March 30, 2010 , the Fund may distribute any long-term capital gains more frequently than the limits provided in Section 19(b) under the 1940 Act and Rule 19b -1 thereunder. Therefore, distributions paid by the Fund during the year may include net income, short-term capital gains, long-term capital gains and/or a return of capital. Net income dividends and short-term capital gain dividends, while generally taxable at ordinary income rates, may be eligible, to the extent of qualified dividend income earned by the Fund, to be taxed at a lower rate not to exceed the maximum rate applicable to your long-term capital gains. Distributions made in any calendar year in excess of investment company taxable income and net capital gain are treated as taxable ordinary dividends to the extent of undistributed earnings and profits, and then as a return of capital that reduces the adjusted basis in the shares held. To the extent return of capital distributions exceed the adjusted basis in the shares held, capital gain is recognized with a holding period based on the period the shares have been held at the date such amount is received. Shareholders should not draw any conclusions about the Fund's investment performance from the terms of the distribution policy. The final determination of the source of all distributions 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 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 distributions for federal income tax purposes.
The payment of distributions in accordance with the Stable Distribution Plan 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 expense ratio 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 Stable Distribution Plan 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, for the purpose of paying the distribution. The Fund's Board of Trustees has the right to amend, suspend or terminate the Stable Distribution Plan at any time. The amendment, suspension or termination of the Stable Distribution Plan 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.
The amounts and sources of distributions for tax reporting purposes will depend on the Fund's investment experience during its fiscal year and may be subject to change based on tax regulations. The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax accounting rules, the amount of distributable income for each fiscal year depends on the dividend and interest income received, the actual exchange rates during the entire year between the U.S. dollar and the currencies in which the Fund assets are denominated, and on the aggregate gains and losses realized by the Fund during the entire year. Therefore, the exact amount of distributable income for each fiscal year can only be determined as of the end of the Fund's fiscal year, September 30 . However, under the U.S. Investment Company Act of 1940, the Fund is required to estimate and disclose the source of each distribution to shareholders. This estimated distribution composition may vary from quarter to quarter because it may be materially impacted by future realized gains and losses on securities and fluctuations in the value of the currencies in which Fund assets are denominated. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report distributions for federal income tax purposes.
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.
Important Information This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and can be identified by the use of words such as "may," "will," "expect," "anticipate," "estimate," "believe," "continue" or other similar words. Such forward-looking statements are based on the Fund's current plans and expectations, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results. There is no assurance that the Fund will achieve its investment objective.
International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally heightened for emerging market investments. Equity stocks of small and mid-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies. Dividends are not guaranteed and a company's future ability to pay dividends may be limited.
Infrastructure-related issuers may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors.
The Fund's investments in private companies may be subject to higher risk than investments in securities of public companies.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund'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 fund's portfolio.
Please read and carefully consider the full description of risks set forth in the Fund's prospectus.
Aberdeen Standard Investments is a brand of the investment businesses of Standard Life Aberdeen plc, its affiliates and subsidiaries. In the United States , Aberdeen Standard Investments is the marketing name for the following affiliated, registered investment advisers: Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd., Aberdeen Standard Investments Australia Ltd., Aberdeen Standard Investments (Asia ) Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Standard Life Investments (Corporate Funds) Ltd.
If you wish to receive this information electronically, please contact Investor.Relations@aberdeenstandard.com
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SOURCE Aberdeen Standard Global Infrastructure Income Fund
