Boulder Growth & Income Fund, Inc. Announces Managed Distribution Policy.BOULDER, Colo. -- The Boulder Growth & Income Fund, Inc. (NYSE NYSE See: New York Stock Exchange :BIF BIF In currencies, this is the abbreviation for the Burundi Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) announced today that its Board of Directors resolved to approve a managed distribution policy for the Fund. The policy, as approved by the Board, would provide for annual distributions to common stock shareholders initially equal to 10% of the Fund's net asset value, such amount to be distributed in equal monthly payments. It is the Fund's intention that once the monthly dollar rate is determined, that it remain the same for the next 12 months or until the Board determines otherwise. The Fund is currently in the process of seeking exemptive relief from the Securities and Exchange Commission to permit the Fund to include net long-term capital gains Long-term capital gain A profit on the sale of a security or mutual fund share that has been held for more than one year. in its periodic managed distributions. The Fund will not implement any managed distribution policy unless and until such exemptive relief is obtained. If the Fund receives SEC exemptive relief prior to September 30, 2004, it is anticipated that the first distribution will be made at, or around, the end of October 2004, based on the Fund's net asset value as of September 30, 2004. To maximize tax efficiency, the distribution will be made first from net long-term capital gains, if any, followed by ordinary income, if any, net short-term gains Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. , if any, and when necessary, a return of capital. If the Fund's total distributions required by the managed distribution policy for the year exceed the Fund's accumulated net investment income and capital gains, the excess will be treated as return of capital, thus reducing each shareholder's individual cost basis. It is expected that a large component of the managed distributions initially will represent return of capital in light of the large capital loss carryforwards Loss Carryforward An accounting technique with which a company applies net operating losses of the current year to future year's profits in order to reduce tax liability. Notes: the Fund currently has, as well as the minimal amount of distributable net investment income the Fund currently has. Shareholders should note that distributions may not represent either yield or investment return. In the event the Fund's net investment income and capital gains exceed the managed distributions made during the year, the Fund will pay an additional year-end distribution in order to comply with IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. regulations governing regulated investment companies Regulated investment company An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. . The Board believes that the proposed managed distribution policy may help the Fund attract new investors, which could have a positive effect on the market price of the Fund's common shares and aid in narrowing the Fund's discount. The managed distribution will also provide shareholders with a dependable monthly cash source, which may be more attractive following the reduction in federal income tax rates on qualified dividend income. The Board will review at least annually the managed distribution policy which, at the Board's discretion, may be changed or discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: at any time. Any reduction in the amount paid or termination of the policy may adversely affect the market price for the Fund's common shares. The Boulder Growth & Income Fund, Inc. trades on the NYSE under the symbol "BIF". As of last Friday, July 16, 2004, the Fund's net asset value was $7.30 and the closing market price was $6.03, which is a discount of 17.4% to the NAV See navigation system and navigation bar. . |
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