The press release outlines the investment objective, strategies, and policies of a fund seeking to provide current income and long-term capital appreciation. The fund's principal investment strategy involves investing at least 80% of its net assets in emerging markets (excluding China) equity securities. It may also invest in frontier markets with lower total market capitalizations and liquidity.
Notably, the fund currently anticipates investing a significant amount of its assets in India and Taiwan. It may use leverage through senior securities representing indebtedness, up to 33 1/3% of its total assets, although the current intention is to utilize leverage generally in the amount of 5% – 15% of the Fund’s total assets.
The press release also mentions the fund's investment in private placements of equity securities, with the possibility of investing up to 30% of its total assets in such placements. Furthermore, the fund may invest in debt securities denominated in the currency of an emerging country or issued or guaranteed by an emerging country company or government. It may also invest in short-term and medium-term debt securities for cash management purposes.
The fund's income distributions are supplemented by realized capital gains and, if necessary, paid-in capital, which is a nontaxable return of capital. The investment adviser evaluates companies against quality criteria, including environmental, social, and governance (ESG) factors, and seeks to identify companies whose quality is not yet fully recognized by the market.
Additionally, the fund may leverage its capital structure through borrowing money or issuing short-term debt securities or shares of preferred stock to enhance the yield of its common stock. The investment adviser may sell a security when it perceives changes in a company’s business direction or growth potential, or when valuations no longer offer attractive relative value.
The press release also mentions the fund's ability to invest in temporary defensive positions, reducing its holdings in equity and other securities and investing in short-term and medium-term debt securities or holding cash during certain periods.
Finally, the fund may invest in depositary receipts, including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and other types of Depositary Receipts, to indirectly invest in securities of emerging markets country issuers.
Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $5.45. If you want to know more, read the company's complete 8-K report here.
