Why Invest In Aberdeen Chile Fund? Why Not Mexico Fund
- Aberdeen Chile Fund operates under a managed distribution policy that pays “quarterly distributions" and requires a portion of Return of Capital (ROC).
- Chile Fund estimates that it has distributed more than its income and capital gains, therefore requiring that a portion of the distributions may be a “return-of-capital”.
- Aberdeen Chile Fund’s attractive annual dividend yield of 10.6% has helped the stock soar to a current premium of +21.5%.
- In 2012 and 2013, long-term capital gain makes up 6.5% and 5.5% respectively and return-of-capital makes up 2.4% and 5.0% respectively.
- A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”.