PHILADELPHIA–(BUSINESS WIRE) – The Delaware Enhanced Global Dividend and Income Fund (the “Fund”), a New York Stock Exchange listed closed-end fund trading under the symbol “DEX”, announced today that the Fund’s board of directors has approved the start of the annual fund has measurement period for offer. If the Fund trades at an average discount of more than 10% during the 12 week evaluation period, the Board of Directors will consider making a takeover offer in order to provide regular liquidity to Shareholders. Additional information about the takeover offer would be communicated to the shareholders at a later date.
In addition, the Fund announced the results of its most recent use of the share buyback program. For the year ended November 30, 2020, the Fund repurchased 108,837 common shares valued at $ 1,010,719 at an average discount per share of 8.60%.
The Fund has implemented a managed distribution policy. As part of the guideline, the fund is managed with the aim of generating as large a portion of the distribution as possible from investment income and short-term capital gains. The remaining amount of the distribution is then derived from long-term capital gains, insofar as this is permissible, and, if applicable, from a return on capital. For example, a return on investment can occur when some or all of the money you have invested in the fund is returned to you. A return on investment does not necessarily reflect the investment performance of the Fund and should not be confused with “return” or “income”. Although the Fund may generate capital gains in the current year, these gains may be partially or fully offset by the Fund’s capital loss carryforwards from previous years.
As part of the Fund’s managed distribution policy, the Fund will make monthly distributions to common shareholders with a target annual distribution rate of 6.5% of the Fund’s average Net Asset Value per Share. The Fund calculates the average net asset value per share for the last three full months immediately prior to distribution based on the number of business days in the three months on which the net asset value is calculated. The distribution is calculated at 6.5% of the average net asset value per share for the last three months divided by 12. The Fund will generally distribute the amounts necessary to comply with the Fund’s managed distribution policy and the requirements of the Excise Rules and Sub-Chapter M of the Internal Revenue Code. This distribution method is intended to provide shareholders with a consistent, but not guaranteed, stream of income and a target annual distribution rate and to limit the haircut between the market price and the net asset value of the common shares of the Fund, but there is no guarantee that the policy will succeed. The method of determining monthly distributions under the Fund’s managed distribution policy will be reviewed at least annually by the Fund’s Board of Trustees and the Fund will continue to evaluate its distribution in light of current market conditions.
You should not draw any conclusions about the investment performance of the Fund from the amount of such distribution or from the terms of the Fund’s managed distribution policy. The amounts and sources of the Fund distributions reported are estimates and are not disclosed for tax reporting purposes. The actual amounts and sources of amounts for tax reporting purposes will depend on the investment experience of the Fund for the remainder of the year and are subject to change due to tax regulations. The fund will send you a 1099-DIV form for the calendar year, stating how these distributions are to be reported for federal income tax purposes.
The Fund’s primary investment objective is to generate ongoing income with a secondary objective of capital appreciation. The Fund invests globally in dividend-paying or income generating securities in a variety of asset classes including, but not limited to: equity securities of large, well-established companies; securities issued by real estate companies (including real estate mutual funds and real estate companies); Debt securities (such as government bonds, investment grade and high risk corporate bonds with high yields, and convertibles); and emerging market securities. The fund also employs enhanced income strategies by engaging in dividend recording businesses. Option override; and realizing profits from the sale of stocks, dividend growth and currency forwards. There can be no guarantee that the Fund will achieve its investment objectives.
Under normal market conditions, the Fund will: (1) invest a maximum of 60% of its net assets in securities of US issuers; and (2) at least 40% of its net assets in securities of non-US issuers, unless market conditions are considered favorable by the Manager. If so, the Fund would invest at least 30% of its net assets in securities of non-US issuers; and (3) the Fund may invest up to 25% of its net assets in securities of real estate companies (including real estate mutual funds and real estate companies). In addition, the fund uses leverage techniques to generate a higher return for the fund.
About Macquarie Investment Management
Macquarie Investment Management, a member of the Macquarie Group, comprises the former Delaware Investments and is a global asset manager with offices in the US, Europe, Asia and Australia. As active managers, we value autonomy and accountability at the team level in order to seize opportunities that are important to customers. Macquarie Investment Management is backed by the resources of the Macquarie Group (ASX: MQG; ADR: MQBKY), a global provider of wealth management, investment, banking, financial and advisory services.
Advisory services are provided by Macquarie Investment Management Business Trust, a registered investment advisor. The Macquarie Group refers to the Macquarie Group Limited and its subsidiaries and affiliates worldwide. For more information on Macquarie’s Delaware Funds®, visit delawarefunds.com or call 800 523-1918.
With the exception of Macquarie Bank Limited (MBL), none of the companies mentioned in this document is an authorized depository institution within the meaning of the Banking Act 1959 (Commonwealth of Australia). The obligations of these companies do not constitute contributions or any other liability of MBL, a subsidiary of Macquarie Group Limited and a subsidiary of Macquarie Investment Management. MBL makes no guarantee or warranties with respect to the obligations of these companies, unless otherwise stated.
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