The First Australia Prime Income Fund Announces Monthly Distribution

Strategic Insights -

The First Australia Prime Income Fund, a closed-end bond fund, has announced its intention to pay a monthly distribution of $0.075 per share to all shareholders of record as of March 31, 1995. This distribution follows the fund's policy of facilitating the maintenance of a stable monthly dividend, with the possibility of paying distributions in excess of its net investment income from realized capital gains. The fund has a cumulative total return of 179.5% based on NAV and 173.7% based on market price since its inception in April 1986.

Key Takeaways:

  • The First Australia Prime Income Fund will pay a monthly distribution of $0.075 per share to shareholders of record as of March 31, 1995.
  • The distribution will be made on April 14, 1995, with an ex-dividend date of March 27, 1995.
  • The fund's policy is to invest at least 65% of its portfolio in Australian issuers or debt securities rated AA or better, with no securities rated lower than A.
  • As of February 28, 1995, the fund's portfolio credit quality breakdown was 64% AAA, 34% AA, and 2% A.
  • The average maturity of the fund's portfolio was 6.1 years as of February 28, 1995.
  • The fund has a cumulative total return of 179.5% based on NAV and 173.7% based on market price since its inception in April 1986.
  • Qualified U.S. taxpayers are entitled to foreign withholding tax credit on this distribution, and will be informed of the amount at a later date.

Statistics:

  • Monthly distribution: $0.075 per share
  • Distribution date: April 14, 1995
  • Ex-dividend date: March 27, 1995
  • Cumulative total return (NAV and market price): 179.5% and 173.7%
  • Annualized total return (NAV and market price): 12.3% and 12.1%
  • Five year cumulative total return (NAV): 84.7% with an annualized total return of 13.1%
  • 12-month total return (NAV and market price): (3.6)% and (11.3)%
  • Portfolio average maturity: 6.1 years

Sources:

  • The First Australia Prime Income Fund, Inc. (PRNewswire, March 13, 1995)
  • EquitiLink International Management Limited and EquitiLink Australia Limited (same source)
  • Dewe Rogerson, Inc. (same source)