Updated Price and Distribution Rate Information,
Additional Information Regarding Investment Policy Changes
UBS Global Asset Management
New York, September 11, 2006 -- Global High Income Dollar Fund Inc. (the "Fund") (GHI), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily in securities of emerging market debt issuers, today announced that the Fund's Board of Directors declared a regular monthly distribution of $0.1103 per share. The distribution is payable on September 29, 2006 to shareholders of record as of September 21, 2006. The ex-dividend date is September 19, 2006.
The Fund adopted a managed distribution policy in December 1999, which was revised in May 2005. Pursuant to the policy as currently in effect, the Fund makes regular monthly distributions at an annualized rate equal to 9% of the Fund's net asset value, as determined as of the last day on which the New York Stock Exchange is open for trading during the first week of that month. Based on information available at this time, the Fund estimates that portions of the current regular monthly distribution may be comprised of net investment income and capital gain distributions. Further information regarding the estimated sources of the current regular monthly distribution will be provided around month-end; however, information provided will be an estimate and subject to change based on the Fund's investment experience during the remainder of its fiscal year.
To the extent that the Fund's taxable income in any fiscal year exceeds the aggregate amount distributed based on a fixed percentage of its net asset value, the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year. To the extent that the aggregate amount distributed by the Fund based on a fixed percentage of its net asset value exceeds its current and accumulated earnings and profit, the amount of that excess would constitute a return of capital or net realized capital gains for tax purposes. From time to time, the Fund may project that a portion of a distribution may consist of a return of capital based on information available at that time. Such an estimate is subject to change based on the Fund's investment experience during the remainder of its fiscal year. The actual sources of the Fund's regular monthly distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Fund's fiscal year based on tax regulations. The actual amounts attributable to each of the sources will be reported to each shareholder in January of each year on Form 1099-DIV.
Monthly distributions based on a fixed percentage of the Fund's net asset value may require the Fund to make multiple distributions of long-term capital gains during a single fiscal year. The Fund has received exemptive relief from the Securities and Exchange Commission that enables it to do so. The Fund's Board receives recommendations from UBS Global Asset Management (Americas) Inc., the Fund's investment advisor, periodically and no less frequently than annually will reassess the annualized percentage of net assets at which the Fund's monthly distributions will be made. The Fund's Board may change or terminate the managed distribution policy at any time; any such change or termination may have an adverse effect on the market price for the Fund's shares.
Characteristics as of August 31, 2006:*
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Net Asset Value $14.70
Market Price $15.48
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NAV Distribution Rate (DR) 9.00%
Market Distribution Rate (DR) 8.55%
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* Net asset value (NAV), market price and distribution rates expressed
as a percentage of each will fluctuate. NAV distribution rate (DR) is
calculated by multiplying the current month's distribution by 12 and
dividing by the month-end net asset value. Market Distribution Rate
(DR) is calculated by multiplying the current month's distribution by
12 and dividing by the month-end market price.
Additional Information Regarding Changes in Investment Policies
As previously announced, beginning in November 2006, the Fund will be able to take greater advantage of investment opportunities in non-US markets.
Currently, the Fund has a policy to invest at least 80% of its net assets in US dollar-denominated debt securities under normal circumstances. The Fund may also invest up to 20% of its net assets in non-US dollar-denominated debt securities under normal circumstances. Effective in November 2006, this policy will change.
-- The requirement that the Fund focus on "US dollar- denominated" investment opportunities will be dropped. The current 80% policy will be changed to read as follows: "Under normal circumstances, the Fund invests at least 80% of its net assets in debt securities." The related 20% policy will cease as it will no longer be needed. The Fund will be able to invest more heavily in non-US dollar denominated securities.
-- A related, secondary policy will also be revised to remove references to US dollars/US issuers and become less restrictive. It will read as follows: "Under normal market conditions, the Fund may commit up to 20% of its net assets to cash as well as invest up to a total of 35% of its total assets in a combination of cash and money market instruments, including repurchase agreements, for liquidity purchases (such as clearance of portfolio transactions, the payment of dividends and expenses and share repurchases) or as part of its ordinary investment activities. The Fund's investments in money market instruments are considered to be investments in debt securities for purposes of the 80% minimum noted above."
While increased investing in non-US dollar denominated securities increases potential investment opportunities, it may also increase risk. Changes in foreign currency exchange rates may affect, to a greater extent, the Fund's net asset value, the value of interest and dividends earned, and gains and losses realized on the sale of securities denominated in foreign currencies.
Reflective of the Fund's strategy enhancements, the Fund's name will change from "Global High Income Dollar Fund Inc." to "Global High Income Fund Inc." in November 2006.
-- In connection with the change in the name of the Fund, the benchmark used by the Fund's advisor to monitor performance will change from the JP Morgan Emerging Markets Bond Index-Global Index ("EMBI-Global") to a blended benchmark composed of 70% of EMBI-Global and 30% JPMorgan Government Bond Index--Emerging Markets Diversified (in USD) ("JP Morgan GBI-EM Diversified"), a local emerging markets debt benchmark that tracks local currency government bonds issued in emerging markets.
-- The Fund's New York Stock Exchange trading symbol is expected to remain "GHI."
The Fund commenced operations in 1993. Since that time, there have been many changes in the global bond markets. These policy changes should help the Fund gain greater exposure to attractive investment opportunities around the world. The Fund has mailed a notice to its shareholders apprising them of these changes.
View more information on UBS Global Asset Management or other Closed-End Funds.
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