CHICAGO, June 18, 2015 /PRNewswire/ -- Duff & Phelps Global Utility Income Fund Inc. (NYSE: DPG), a non-diversified closed-end fund, today announced that its Board of Directors has affirmed the continuation of the $0.35 per share quarterly dividend on its common stock.
Also today, the Board instituted a Managed Distribution Plan (the "Plan"). The Fund is undertaking this action in recognition of its accumulated realized and unrealized capital gains position. The valuation of many Fund holdings has increased along with the general stock market. As a result, ongoing portfolio management incurs distributable capital gains. In addition, recent merger activity has caused the Fund to realize distributable capital gains.
The Investment Company Act of 1940 limits long-term capital gain distributions to once yearly, subject to limited exceptions, which can result in uneven and unexpected distributions to shareholders. By adopting the Plan, the Fund will have the benefit of an exemptive order allowing it to distribute capital gains quarterly throughout the year. Further, the Plan will increase the Fund's ability to sustain the current shareholder distribution in varying economic and investment climates.
Under the Plan, the Fund will distribute all available investment income to shareholders consistent with the Fund's investment objective. If and when sufficient investment income is not available on a quarterly basis, the Fund will distribute capital gains and/or return of capital to its shareholders in order to maintain the level distribution rate that has been approved by the Board. Further information about the managed distribution plan is available in the semi-annual report to shareholders to be published later this month.
The Board today authorized the payment of the next quarterly dividend on its common stock as follows:
Cents Per Share | Record Date | Payable Date |
$0.35 | September 15, 2015 | September 30, 2015 |
The following table sets forth the estimated amounts of the Fund's March quarterly distribution, payable March 31, 2015, together with the cumulative distributions paid this fiscal year to date from the following sources. All amounts are expressed per share of common stock based on U.S. generally accepted accounting principles which may differ from federal income tax regulations.
Distribution Estimates | March 2015 (QTD) | Year-to-date (YTD) | ||
(Sources) | Per Share Amount | % of Current Distribution | Per Share Amount | % of Cumulative Distributions |
Net Investment Income | $ 0.097 | 27.6% | $ 0.283 | 40.5% |
Net Realized Short-Term Capital Gains | - | - | - | - |
Net Realized Long-Term Capital Gains | 0.253 | 72.4% | 0.417 | 59.5% |
Return of Capital (or other Capital Source) | - | - | - | - |
Total | $ 0.350 | 100.0% | $ 0.700 | 100.0% |
March 31, 2015 | |||
Average annual total return on NAV since inception (1) | 11.51% | ||
Annualized current distribution rate as a percentage of NAV | 6.32% | ||
Cumulative total return on NAV for the fiscal year | -6.32% | ||
Cumulative fiscal year distributions as a percentage of NAV | 3.16% | ||
(1) Average annual total return on NAV is the annual compound return from the commencement of the Fund's operations on July 29, 2011. It reflects the change in the Fund's NAV and reinvestment of all distributions. | |||
The Fund will issue a separate 19(a) notice at the time of each quarterly distribution using the most current financial information available. You should not draw any conclusions about the Fund's investment performance from the amount of these distributions or from the terms of the Fund's managed distribution plan.
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax reporting purposes. 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 changes 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.
About the Fund
The Fund's investment objective is to seek total return, resulting primarily from (i) a high level of current income, with an emphasis on providing tax-advantaged dividend income and (ii) growth in current income, and secondarily from capital appreciation. The Fund seeks to achieve these objectives by investing in equities of domestic and foreign utility companies in the electric, gas, water, telecommunications, and midstream energy sectors. For more information, please contact shareholder services at (866) 270-7598, by email at duff@virtus.com, or visit the DPG website, www.dpgfund.com.
About the Investment Adviser
Duff & Phelps Investment Management Co. is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a multi-boutique asset manager with $54.8 billion under management as of March 31, 2015. Duff & Phelps has more than 35 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure and real estate investment trusts (REITs). For more information, visit www.dpimc.com.
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SOURCE Duff & Phelps Investment Management Co.
