PHILADELPHIA CREAM – (BUSINESS WIRE) – Today, Delaware Investments Dividend and Income Fund (the “Fund”), a closed-end fund listed on the New York Stock Exchange trading under the symbol “DDF”, announced that the Board of Directors of the Fund has unanimously approved the Fund’s choice to be subject to the Maryland Control Share Acquisition Act (MCSAA), effective May 28, 2021.
The purpose of the MCSAA is to protect the interests of all shareholders of a Maryland corporation. It does this by limiting the voting power of a large investor or group acting in concert on newly acquired shares above various thresholds starting at 10%. These shares can only be voted if two thirds of the shares held by the other shareholders agree to grant the voting rights to these “control shares”.
The MCSAA will only apply to “control shares” acquired after May 28, 2021, the date on which the Funds elected to be subject to the MCSAA. The above description of the MCSAA is only a high level summary and investors should refer to the current provisions of the MCSAA for further information.
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 7.5% of the average net asset value (“NAV”) 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 7.5% 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.
You should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Fund’s managed distribution policy. The amounts and sources of the Fund’s distributions to report will be estimates and will not be provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its financial year and may be subject to change depending on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.
The Fund is a diversified closed-end fund. The main investment objective is to seek a high current income; capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least 65% of its total assets in income-generating equity securities, including dividend-paying common stocks, convertible securities, preferred stocks and ” other equity-linked securities, which may include up to 25% in real estate investment trusts (REITs) and operating companies in the real estate industry. Up to 35% of the Fund’s total assets may be invested in non-convertible debt securities consisting primarily of high yield, high risk corporate bonds. In addition, the Fund uses leverage techniques in an attempt to obtain a higher return for the Fund. There can be no assurance that the Fund will achieve its investment objectives.
About Macquarie Investment Management
Macquarie Investment Management, a member of the Macquarie Group, includes the former Delaware Investments and 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 800-523-1918.
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.
© 2021 Macquarie Management Holdings, Inc.