abrdn Emerging Markets Ex-China Fund, Inc. (AEF) Announces Distribution Payment Details

Rhea-AI Summary

abrdn Emerging Markets ex-China Fund (AEF) has announced details of its first distribution payment under the recently increased distribution rate. The Fund will distribute $0.15 per share on March 31, 2025, to shareholders of record as of March 25, 2025.

The distribution reflects the Fund's strategic change announced in December 2024, where the Board approved an increase in the annualized distribution rate from 6.5% to 10%. The quarterly distributions are calculated based on the average daily NAV for the previous three months. The Fund plans to maintain this increased rate for at least 12 months, barring significant market changes.

This policy aims to provide steady quarterly cash distributions to shareholders and potentially help reduce any discount to NAV at which the Fund's shares trade. However, the Fund notes there is no guarantee these objectives will be achieved, and the distribution policy remains subject to Board modification.

Positive

• Significant increase in distribution rate from 6.5% to 10%
• Commitment to maintain higher distribution rate for at least 12 months
• Policy designed to reduce NAV discount in share trading

Negative

• No guarantee of achieving distribution objectives
• Distribution policy subject to modification by Board

Insights

Investment Fund Analyst

The abrdn Emerging Markets ex-China Fund's announcement represents a significant enhancement to shareholder value through its substantial distribution rate increase from 6.5% to 10%. This translates to a $0.15 per share quarterly payout, with the first payment scheduled for March 31, 2025.

This 53.8% increase in the distribution rate is particularly notable for a closed-end fund. With the fund committing to maintain this elevated rate for at least 12 months barring significant market disruptions, shareholders gain both enhanced income predictability and potentially improved total returns.

The distribution policy serves dual strategic purposes. First, it provides shareholders with a steady, predictable income stream in an otherwise volatile emerging markets sector. Second, it addresses the common closed-end fund challenge of NAV discount by potentially attracting income-seeking investors to narrow any existing price-to-NAV gap.

For context, closed-end funds often trade below their net asset values, and higher distribution rates frequently help reduce these discounts by increasing investor demand. The fund's board has clearly prioritized shareholder returns through this policy change, which should support both income-focused investors and those concerned about market price stabilization relative to underlying asset value.

PHILADELPHIA, PA / ACCESS Newswire / March 11, 2025 / abrdn Emerging Markets ex-China Fund, Inc. (NYSE American:AEF), (the "Fund"), a closed-end fund, announced today details of the first distribution under the increased 10% rate. The Fund will pay the $0.15 distribution indicated on a per share basis on March 31, 2025, to all shareholders of record as of March 25, 2025 (ex-dividend date March 25, 2025).

As announced in December 2024, as part of the strategic changes, the Board approved an increase to its annualized distribution rate from 6.5% to 10%. The quarterly distributions will continue to be based on the average daily net asset value ("NAV") for the previous three months as of the month-end prior to declaration. The Fund intends to maintain the increased distribution rate for at least the next 12 months, unless there is a significant and unforeseen change in market conditions. This policy will be subject to regular review by the Board. The policy is expected to provide a steady and sustainable quarterly cash distribution to Fund shareholders that may help reduce any discount to NAV at which the Fund's shares trade. There is no assurance that the Fund will achieve these results.

At the end of each calendar year, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of the Fund's distributions and provide information with respect to their appropriate tax treatment for the prior calendar year. The Fund's distribution policy is subject to modification by the respective Board of Directors at any time, and there can be no guarantee that the policy will continue. You should not draw any conclusions about any of these Funds' investment performance from the amount of the distributions.

Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S. Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia 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

www.abrdnaef.com

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For More Information Contact:

abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com

SOURCE: abrdn Emerging Markets ex-China Fund, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the new distribution amount for AEF and when will it be paid?

AEF will pay $0.15 per share on March 31, 2025, to shareholders of record as of March 25, 2025.

How much did AEF increase its distribution rate in December 2024?

AEF increased its annualized distribution rate from 6.5% to 10% in December 2024.

How long will AEF maintain the new 10% distribution rate?

AEF intends to maintain the 10% distribution rate for at least 12 months, unless there are significant market changes.

How are AEF's quarterly distribution amounts calculated?

AEF's quarterly distributions are based on the average daily NAV for the previous three months as of the month-end prior to declaration.