Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc.
Announces Change to Name and Investment Policies
PHILADELPHIA, Nov. 26, 2012
PHILADELPHIA, Nov. 26, 2012 /PRNewswire/ --Aberdeen Emerging Markets
Telecommunications and Infrastructure Fund, Inc. (NYSE MKT: ETF) (the "Fund")
today announced that its Board of Directors (the "Board") has approved changes
to certain investment policies of the Fund.
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As a result of these policy changes, the Fund will no longer concentrate its
investments in the telecommunications industry and is not required to focus
its investment in any industry. The Board approved the removal of the Fund's
fundamental policy to invest, under normal market conditions, at least 65% of
its total assets in equity securities of telecommunications companies in
emerging markets. Because this policy is fundamental, the proposed change
requires approval by the Fund's shareholders. The Board approved certain
other changes to the Fund's investment policies as set forth below, which will
not be effective unless and until shareholder approval of the removal of the
Fund's concentration policy is obtained.
The current and amended versions of the Fund's investment policies that are
being revised and/or added are as follows:
As a fundamental policy, under normal
market conditions, at least 80% of the
Fund's net assets, plus any borrowings
for investment purposes, will be invested
in equity securities of emerging market
smaller company issuers.
Under normal market conditions, at
least 80% of the Fund's net assets,
plus any borrowings for investment
purposes, will be invested in equity An emerging market country is any country
and debt securities of emerging determined by the Aberdeen Asset Managers
markets telecommunications companies Limited, the Fund's Adviser, to have an
and infrastructure companies in the emerging market economy, considering
aggregate. As a fundamental policy, factors such as the country's credit
under normal market conditions, at rating, its political and economic
least 65% of the Fund's total assets stability and the development of its
must be invested in equity financial and capital markets. Emerging
securities of telecommunications market countries for purposes of this
companies in emerging markets. policy can include every nation in the
world except the United States, Canada,
Japan, Australia, New Zealand and most
countries located in Western Europe.
Smaller companies for the purposes of
this policy can be companies that, at the
time of purchase, have a market
capitalization of less than $5 billion.
The Fund may, at the full discretion of
the advisor, continue to focus its
investments in securities of companies
Under normal market conditions, at from each of the infrastructure,
least 20% (but not more than 24.9%) telecommunications and technology sectors
of the Fund's net assets will be of emerging market countries. The portion
invested in equity and debt of the Fund's portfolio invested in
securities of companies in the securities of companies from each of such
infrastructure industry. sectors will vary from time to time,
based on the Adviser's view of current
market conditions. The Fund will not
concentrate its investments in any
industry or group of industries.
Emerging market securities include
securities that are issued by: (a)
governments or government-related bodies
of emerging market countries; and/or (b)
companies or other issuers that (i) are
organized under the laws of, or have
their principal office in, an emerging
market country, (ii) have their principal
securities trading market in an emerging
market country, (iii) alone or on a
consolidated basis derive a significant
portion of their annual revenue or assets
from goods produced, sales made or
services performed in emerging markets
countries; and/or (iv) are denominated in
the currency of an emerging market. The
Fund may also invest without limits in
those markets deemed by the Investment
Adviser to be "Frontier" markets.
Based on current market conditions, the
Fund will consider "smaller companies" to
be companies that, at the time of
purchase, have a market capitalization of
less than $5 billion. Some companies may
outgrow the definition of a smaller
company after the Fund has purchased the
securities. These companies continue to
be considered "smaller" for purposes of
the Fund's minimum 80% allocation to
smaller company securities.
The Fund invests in common stock, but may
also invest in other types of equity
securities, including preferred stock,
convertible securities, depositary
receipts and rights and warrants to buy
Aberdeen Asset Managers Limited ("AAML"), the Fund's investment adviser, and
the Board each believe that the proposed changes to the Fund's investment
policies are in the best interests of the Fund's shareholders and will permit
the Fund to continue to achieve its investment objective. The approved changes
will not alter the Fund's investment objective of seeking long-term capital
Additional information regarding the change to the Fund's name and investment
policies will be included in the proxy statement to seek approval of the
removal of the concentration policy described above. A special meeting of
shareholders is intended to be held in the first quarter of 2013 to consider
the change. No action is required at this time by shareholders of the Fund in
connection with these changes.
If the removal of the concentration policy is approved, the Fund will change
its name to reflect the new investment policies. The new name of the Fund
would be Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc.,
which would be effective upon shareholder approval of the concentration policy
change. The Fund would continue to trade on the NYSE MKT under its current
ticker symbol (ETF).
If shareholder approval is obtained, AAML will restructure the Fund's
portfolio to reflect its new investment policies. The tax impact of the
restructuring will depend on the difference between the price at which
portfolio securities are sold and the Fund's basis in such securities, offset
by capital loss carry forwards. Any net capital gains realized will be
distributed prior to the end of 2013, and such distribution will be taxable to
tax-paying shareholders. The amount of net capital gains realized and
distributed can fluctuate widely and will depend on, among other things,
market conditions at the time of the sales. If the portfolio restructuring
had occurred on October 31, 2012 and the distribution made on that date, the
Fund would have distributed approximately $5.70 per share, all of which
consists of capital gains. The amount noted in the preceding sentence is an
estimate based on current market conditions and there can be no guarantee that
the dividends actually paid will not be materially higher or lower than the
This press release does not constitute the solicitation of a proxy for
approval of the change in concentration policy of the Fund or any other
matter, which can only be made by means of a proxy statement filed with the
Securities and Exchange Commission. When a proxy statement becomes available,
shareholders are advised to read it because it contains important
information. The proxy statement, when available, will be available for free
at the Commission's website www.sec.gov.
Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc. is
a closed-end management investment company that seeks long-term capital
appreciation by investing primarily in equity securities of telecommunications
and infrastructure companies in emerging markets. The Fund's shares are traded
on the NYSE MKT under the trading symbol "ETF".
International investing entails special risk considerations, including
currency fluctuations, lower liquidity, economic and political risks, and
difference in accounting methods.
Closed-end funds are traded on the secondary market through one of the stock
exchanges. The 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
the Fund will achieve its investment objective. Past performance does not
guarantee future results.
Aberdeen Asset Management is the marketing name in the U.S. for the following
affiliated, registered investment advisers: Aberdeen Asset Management Inc.,
Aberdeen Asset Managers Limited, Aberdeen Asset Management Ltd. and Aberdeen
Asset Management Asia Ltd. (collectively, the 'Aberdeen Advisers'). Each of
the Aberdeen Advisers is wholly owned by Aberdeen Asset Management PLC.
"Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC.
If you wish to receive information from or about the Fund electronically,
please contact InvestorRelations@aberdeen-asset.com
SOURCE Aberdeen Emerging Markets Telecommunications and Infrastructure Fund,
Contact: Aberdeen Asset Management Inc. Investor Relations, +1-866-839-5205,
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