PHILADELPHIA, PA / ACCESSWIRE / December 20, 2021 / Aberdeen Japan Equity Fund, Inc. (NYSE:JEQ) (the "Fund"), a closed-end equity fund, announced today that it will pay a distribution of US$0.98049 per share on January 11, 2022 to all stockholders of record as of December 30, 2021 (ex-dividend date December 29, 2021). This distribution is comprised of $0.10751 per share of net investment income and $0.87298 net realized long-term capital gains.
In January 2022, a Form 1099-DIV will be sent to stockholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2021 calendar year.
Managed Distribution Policy
In addition, the Fund announced today that it has implemented a Managed Distribution Policy ("MDP") commencing in 2022. The Board has determined that the Fund will pay quarterly distributions at an annual rate, set once a year, that is a percentage of the rolling average daily net asset value ("NAV") for the previous three months as of the month-end prior to declaration. The Board has determined that the annualized rate for the 2022 calendar year will be 6.5%. The Fund's distribution policy (the "Distribution Policy") is to provide investors with a stable quarterly distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital. The Distribution Policy will be subject to regular review by the Board. Previously, the Fund's policy was to pay a single annual distribution.
In approving the managed distribution policy the Board considered, among other factors, the ability of the Fund to sustain the policy and that making periodic distributions could increase liquidity for common shareholders and may assist in narrowing the discount to NAV at which the Fund's shares have tended to trade. There can be no guarantee that these benefits will occur or that any improvement would continue.
The distributions will be made from net investment income, net realized capital gains and, to any extent necessary, return of capital. As net assets of the Fund may vary from quarter to quarter, the quarterly distribution may represent more or less than one quarter of 6.5% of the Fund's net assets at the time of distribution. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of the distributions or the terms of the Fund's policy.
The Fund is covered under exemptive relief received by the Fund's investment manager 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 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, December 31. 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.
The Fund is managed and advised by abrdn Asia Limited. The Fund's shares trade on the NYSE under the symbol "JEQ". You should not draw any conclusions about the Fund's investment performance from the amount of this distribution.
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd., abrdn Australia Limited, abrdn Asia Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Aberdeen Standard Alternative Funds Limited.
Closed-end funds are traded on the secondary market through one of the stock exchanges. A 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. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.
If you If you wish to receive this information electronically, please contact [email protected]
For More Information Contact:
Aberdeen Standard Investments Inc.
Investor Relations
1-800-522-5465
[email protected]
SOURCE: Aberdeen Japan Equity Fund, Inc.