PHILADELPHIA CREAM – (BUSINESS WIRE) – Delaware Enhanced Global Dividend and Income Fund (NYSE: DEX) (the “Fund”) today announced that its Board of Trustees has authorized a takeover bid from the issuer to purchase for cash up to 594 367 of its common shares, or five percent of its issued and outstanding common shares, without par value. The tender offer will begin on Wednesday, June 2, 2021 and will expire, unless extended, at 11:59 p.m. New York time on Tuesday, June 29, 2021. Subject to various terms and conditions described in offering documents to be distributed to shareholders: (1) purchases will be made at a price per share equal to 98% of the net asset value per share of the Fund at the close of trading on the first business day following the expiration of the ‘offer; and (2) if more shares are tendered than the amount the board has authorized to purchase, the Fund will purchase a number of shares equal to the amount of the pro rata offer.
The common shares of the Fund have recently traded at a discount to their net asset value per share. During the term of the tender offer, the current net asset value per share will be available by telephone at 888 605-8334 or on the Fund’s website at delawarefunds.com/closed-end.
The primary investment objective of the Fund is to seek current income, with a secondary objective of capital appreciation. The Fund invests globally in securities that pay dividends or income in a number of asset classes, including, but not limited to: equity securities of large, established companies; securities issued by real estate companies (including real estate investment trusts and operating companies in the real estate industry); debt securities (such as government bonds, investment grade and high risk corporate bonds, high yield and convertible bonds); and emerging market securities. The Fund also uses enhanced income strategies by engaging in dividend capture transactions; overwriting options; and the realization of gains on the sale of securities, dividend growth and forward currency contracts. There can be no assurance that the Fund will achieve its investment objectives.
Under normal market conditions, the Fund will invest: (1) not more than 60% of its net assets in securities of US issuers; and (2) at least 40% of its net assets in securities of non-US issuers, unless market conditions are not considered favorable by the Manager, in which case the Fund would invest at least 30% of its net assets in securities of non-US issuers; and (3) the Fund may invest up to 25% of its net assets in securities issued by real estate companies (including real estate investment trusts and operating companies in the real estate industry). In addition, the Fund uses leverage techniques in an attempt to obtain a higher return for the Fund.
The Fund has implemented a managed distribution policy. Under the policy, the Fund is managed with the aim of generating as much distribution as possible from net investment income and short-term capital gains. The balance of the distribution will then come from long-term capital gains to the extent permitted and, if necessary, from a return of capital. A return of capital may occur, for example, when all or part of the money you have invested in the Fund is returned to you. A return of capital distribution does not necessarily reflect the investment performance of the Fund and should not be confused with “return” or “income”. Although the Fund may realize capital gains for the current year, these gains may be offset, in whole or in part, by capital loss carryforwards of the Fund from previous years.
Under the Fund’s managed distribution policy, the Fund makes monthly distributions to common shareholders at a target annual distribution rate of 6.5% of the average net asset value per share of the Fund. The Fund will calculate the average net asset value per share for the three full months immediately preceding the distribution based on the number of business days in those three months on which the net asset value is calculated. The distribution will be calculated at 6.5% of the average net asset value of the previous three months per share, divided by 12. The Fund will generally distribute the amounts necessary to satisfy the managed distribution policy of the Fund and the requirements prescribed by the rules of excise tax and subchapter M of the Revenue Code. This distribution methodology aims to provide shareholders with a consistent, but not guaranteed, income stream and a targeted annual distribution rate and aims to reduce any discount between the market price and the net asset value of the common shares of the Fund, but nothing guarantees that the policy will succeed in doing so. The method of determining monthly distributions under the Fund’s Managed Distribution Policy will be reviewed at least annually by the Board of Trustees of the Fund, and the Fund will continue to assess its distribution in light of current market conditions. market.
Shareholders are encouraged to read the offer to purchase when available, as it contains important information.
The Offer to Purchase and other documents filed by the Fund with the United States Securities and Exchange Commission (SEC), including the Fund’s Annual Report for the year ended November 30, 2020, are or will be available. free of charge on the Commission’s website (sec.gov) or by calling the Fund’s information agent.
About Macquarie Investment Management
Macquarie Investment Management, a member of the Macquarie Group, is a global asset manager with offices in the United States, Europe, Asia and Australia. As active managers, we prioritize autonomy and accountability at the team level in finding opportunities that matter to clients. Macquarie Investment Management draws on the resources of Macquarie Group (ASX: MQG; ADR: MQBKY), a global provider of asset management, investment, banking, financial and advisory services.
Advisory services are provided by Macquarie Investment Management Business Trust, a registered investment advisor. Macquarie Group means Macquarie Group Limited and its subsidiaries and affiliates worldwide. For more information on Delaware funds® by Macquarie, visit delawarefunds.com or call 800523-1918.
With the exception of Macquarie Bank Limited (MBL), none of the entities mentioned in this document is an authorized deposit institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of MBL, a subsidiary of Macquarie Group Limited and an affiliate of Macquarie Investment Management. Unless otherwise indicated, MBL does not guarantee or provide any assurance as to the obligations of these entities.
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