2002 Target Term Trust Inc.-- Distribution Declaration, Announcement of Share Repurchase Program and Portfolio Statistics.Business Editors NEW YORK--(BUSINESS WIRE)--June 5, 2000 2002 Target Term Trust Inc. (NYSE NYSE See: New York Stock Exchange : TTR TTR Transthyretin TTR Ticket To Ride (World Snowboard Tour) TTR Transformer Turns Ratio (electric power transmission and distribution) TTR Time To Repair TTR Time to Read ), a diversified, closed-end management investment company investing in high quality fixed-income and adjustable-rate securities, today announced that the Trust's Board of Directors has declared a monthly dividend of $0.065 per share. The dividend is payable on June 30, 2000 to shareholders of record as of June 20, 2000. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. is June 16, 2000. This monthly dividend, which is reduced from the previous $0.0718 per share level, represents an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. yield of approximately 5.52% on the Trust's May 31, 2000 net asset value of $14.12 per share and approximately 5.83% on the Trust's May 31, 2000 NYSE closing market value of $13.38. As the Trust nears its termination date termination date, n See expiration date. it must reduce its duration and average maturity. These reductions require that the Trust also reduce its exposure to longer-term assets; the reduction of exposure to these longer-term assets has resulted in a lower portfolio yield, and thus the lower monthly dividend. The Board also authorized the Trust's investment adviser, Mitchell Hutchins Asset Management Inc., to re-commence the Trust's previous program to repurchase its shares in the open market. When the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program was in effect from July 10, 1995 to November 30, 1997, the Trust repurchased a total of 2,873,600 of its shares. Of course, there can be no certainty as to the number of shares that the Trust will be able to repurchase in the future. The share repurchase program is aimed at reducing the market discount on the Trust's shares and at increasing the Trust's return to shareholders. The Trust will seek to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the its assets and distribute the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to shareholders on or about November 30, 2002. While the portfolio is being managed in an effort to return the initial offering price of $15.00 per share, this is not guaranteed. Portfolio Statistics (% of total portfolio assets) as of May 31, 2000: Portfolio Composition ------------------------------------------ Collateralized Mortgage Obligations 51.5% Agency CMOs 8.1% Non-Agency CMOs 43.4% Adjustable Rate Mortgages 9.2% Agency ARMs 7.1% Non-Agency ARMs 2.1% Collateral Pass Throughs 31.6% Mortgage-Backed Derivatives 2.9% Agency MBD 1.5% Non-Agency MBD 1.4% Asset-Backed Securities 4.8% -------------------------------------------- Total 100.0% Yields -------------------------------------------- Market Yield 5.83 % NAV Yield 5.52 % IPO Yield 5.20 % -------------------------------------------- Characteristics -------------------------------------------- Net Leverage 1.78% Average Credit Quality AAA Convexity -0.60 Weighted Avg Maturity 5.84 yrs Weighted Avg Duration 2.01 yrs Weighted Avg Coupon 6.99% Net Asset Value $14.12 Market Price $13.38 ----------------------------------------- Market yield is calculated by multiplying the current month's distribution by 12 and dividing by the month-end market price. NAV See navigation system and navigation bar. yield is calculated by multiplying the current month's distribution by 12 and dividing by the month-end net asset value. IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. yield is calculated by multiplying the current month's distribution by 12 and dividing by the initial public offering price. Prices and yields will vary. |
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