Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc.
Announces Results of Special Meeting of Shareholders and Approval of Change to
Name and Investment Policies
PHILADELPHIA, March 14, 2013
PHILADELPHIA, March 14, 2013 /PRNewswire/ --Aberdeen Emerging Markets
Telecommunications and Infrastructure Fund, Inc. (NYSE MKT: ETF) (the "Fund")
today announced that its shareholders have voted in the affirmative along with
the Board of Directors to change certain investment policies of the Fund.
(Logo: http://photos.prnewswire.com/prnh/20121106/NE07292LOGO )
As a result of these policy changes, effective March 15, 2013, the Fund will
no longer concentrate its investments in the telecommunications industry and
is not required to focus its investment in any industry.The shareholders
approved a proposal to (a) replace 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 market with a new
fundamental policy to invest, under normal market conditions, at least 80% of
the Fund's net assets, plus any borrowing for investment purposes, in equity
securities of emerging market smaller company issuers; and (b) replace the
Fund's fundamental investment restriction to concentrate its investments in
the telecommunications industry with a new fundamental investment restriction
to not concentrate the Fund's investments in any industry. A summary of the
Fund's new investment policies, which will become effective on March 15, 2013,
are set forth below. The approved changes will not alter the Fund's investment
objective of seeking long-term capital appreciation.
The Fund's new investment policies are as follows:
Effective March 15, 2013
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. An
emerging market country is any country determined by Aberdeen Asset Managers
Limited, the Fund's investment adviser (the "Adviser"), to have an emerging
market economy, considering factors such as the country's credit rating, its
political and economic stability and the development of its financial and
capital markets. Emerging market countries for purposes of this 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 Adviser, focus its investments in
securities of companies from each of the infrastructure, telecommunications
and technology sectors of emerging market countries. The portion of the Fund's
portfolio invested in securities of companies from each of such 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 limit in those markets
deemed by the Adviser to be "Frontier" markets, which are investible markets
with lower total market capitalizations and liquidity than more developed
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 common stock.
As a fundamental investment restriction, the Fund may not invest more than 25%
of its total assets in the securities of issuers in any single industry,
except that this limitation will not be applicable to the purchase of
obligations issued or guaranteed by the U.S. Government or its agencies or
To reflect the new investment policies, the Fund's name will change to
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. The Fund
will continue to trade on the NYSE MKT under its current ticker symbol (ETF).
The Adviser 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.
The Fund is part of Aberdeen's suite of closed-end funds for U.S. investors.
In addition to being one of the largest independent asset management houses
investing in the Asia-Pacific region, the Aberdeen Group (made up of
Aberdeen-affiliated investment advisers) is the largest manager of emerging
market closed-end funds offered around the world by both value and number.^^1
For additional information on Aberdeen's family of closed-end funds, please
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; these risks are generally heightened for
emerging market investments. Equity stocks of small-cap companies carry
greater risk, and more volatility than equity stocks of larger, more
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.
In the United States, Aberdeen Asset Management (AAM) is the marketing name
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., each of which 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
^1 Fund Consultants LLC, February 2013. Based on analysis of emerging market
closed-end funds offered in multiple jurisdictions as of December 31, 2012;
data provided by Morningstar Inc. Closed-end funds are defined as investment
companies that are 1) listed on a recognized exchange; 2) possess fixed share
capital; 3) were formed via subscriptions from the public via an open offer or
placement; 4) invest in listed or unlisted shares of companies and; 5) are
included in the universe of funds listed in Morningstar Traded Fund Center.
Criteria for inclusion in the emerging markets category is based on the World
Bank's definition of emerging countries as measured by lower and middle income
per capita. Criteria for fund inclusion are 1) at least 75% of gross assets
invested in emerging markets; and 2) funds with under 25% exposure to Asian
SOURCE Aberdeen Emerging Markets Telecommunications and Infrastructure Fund,
Contact: Aberdeen Asset Management Inc., Investor Relations, 1-866-839-5205,
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