Aberdeen Asset Management
New York, June 19, 2006 – Aberdeen Australia Equity Fund, Inc. (AMEX:IAF / PSE:IAF), a closed end equity fund, announced today that it will pay a quarterly distribution of US 31 cents per share on July 14, 2006 to all shareholders of record as of June 30, 2006 (ex-dividend date June 28, 2006).
The Fund has a managed distribution policy of paying quarterly distributions at an annual rate, set once a year, that is a percentage of the rolling average of the Fund’s prior four quarter-end net asset values. In March 2006, the Board of Directors determined that the rolling distribution rate would be 10% for the 12 months commencing with the distribution payable in April 2006. This policy will be subject to regular review by the Fund’s Board of Directors. The distributions will be made from current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.
For the 12 months to May 31, 2006, the Fund has paid total distributions amounting to US $1.29 per share.
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 period depends on the actual exchange rates during the entire year between the U.S. dollar and the currencies in which 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, October 31. However, under the U.S. Investment Company Act of 1940, the Fund is required to indicate the source of each distribution to shareholders.
The 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.
In January 2007, a Form 1099 DIV will be sent to shareholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment.
Qualifying U.S. taxpayers are generally entitled to a foreign withholding tax credit on distributions received. Shareholders will be informed as to the exact amount of the tax credit shortly after the end of the tax year.
The Fund is managed by Aberdeen Asset Management Asia Limited and advised by Aberdeen Asset Management Limited. The Fund’s shares trade on the American Stock Exchange and the Pacific Stock Exchange under the symbol “IAF”.
View more information on Aberdeen Asset Management or other Closed-End Funds
|
©1999-2008 Closed-End Fund Association, Inc. All Rights Reserved
 | | Powered by a SySys® data & content management system. Click here to learn more. |
|
|