Global High Income Fund Inc. — Distribution Characteristics for October 2015

NEW YORK–(BUSINESS WIRE)–Global High Income Fund Inc. (the “Fund”) (NYSE:GHI), a non-diversified,
closed-end management investment company seeking high current income and
secondarily, capital appreciation through investments primarily in
securities of emerging market debt issuers, today announced its
distribution characteristics for the month of October 2015.

The following notice was sent to shareholders today:

Global High Income Fund Inc.
c/o UBS Global Asset Management
(Americas) Inc.
1285 Avenue of the Americas
New York, NY 10019

October 2015

The purpose of this document is to provide you with information that is
required to be sent to you as well as additional information that may be
of interest to at least some investors.

On October 12, 2015, the Fund’s Board of Directors declared a regular
monthly distribution of $0.0679 per share. This distribution is payable
on October 30, 2015 to shareholders of record as of October 22, 2015.
The ex-distribution date was October 20, 2015.

The Fund adopted a managed distribution policy (“Policy”) in December
1999. Pursuant to the Policy as in effect from June 2014 through May
2015, the Fund made regular monthly distributions at an annualized rate
equal to 6% of the Fund’s net asset value, determined as of the last day
on which the New York Stock Exchange is open for trading during the
first week of that month. Pursuant to the Policy with respect to
distributions paid from June 2012 through the monthly distribution for
May 2014, the annualized rate had been 7%. Consistent with the Policy,
the monthly distribution in any given month may have been comprised of a
combination of net investment income, capital gains, and/or a return of
capital. The Fund’s Board receives recommendations from UBS Global Asset
Management (Americas) Inc. (“UBS AM”), the Fund’s investment advisor,
periodically, and no less frequently than annually will reassess the
annualized percentage of net assets at which the Fund’s monthly
distributions will be made.

As announced in a press release issued on May 20, 2015, the annualized
rate of the Fund’s monthly distribution was increased from 6% to 9%,
effective with the June 2015 monthly distribution. The Fund’s Board
intends to maintain the 9% annualized distribution rate until June 2016
or the earlier liquidation of the Fund if approved by shareholders as
discussed in a Fund press release dated October 13, 2015. However, the
Fund’s Board reserves its right to change that distribution rate or to
change or terminate the Policy at any time without prior notice to Fund
shareholders should the Board determine that to do so would be in the
best interests of the Fund in light of unforeseen, changed circumstances
from those that prevailed when the 9% annualized distribution rate was
adopted in May 2015. Any such change or termination may have an adverse
effect on the market price for the Fund’s shares and would be announced
in a press release.

The Board believed that the increased rate was appropriate based upon
the recommendation of UBS AM, and in light of its ongoing consideration
of efforts to reduce the discount to NAV at which the Fund’s shares
recently had traded as of May 2015. Historically, UBS AM and the Board
had sought to maintain distribution rates that were more closely aligned
with the Fund’s expected earnings. In recent years, however, a general
decline in prevailing bond yields and narrowing of spreads have reduced
the Fund’s earnings levels, which resulted in reductions of the monthly
distribution rate, which may have contributed to the discount at which
the Fund’s shares have traded. UBS AM believed that increasing the
annualized distribution rate might help to reduce the Fund’s trading

In approving the increased distribution rate, the Fund’s Board has
effectively de-linked the Fund’s managed distribution payments from the
level of anticipated Fund earnings. To the extent that the aggregate
amount distributed by the Fund under the Policy exceeds its current and
accumulated earnings and profits, which is an expected result of the
increase discussed above, the amount of that excess would constitute a
return of capital or net realized capital gains for tax purposes. A
return of capital may occur, for example, when some or all of the money
that shareholders invested in the Fund is deemed to be paid back to
them. A return of capital distribution does not reflect the Fund’s
investment performance and should not be confused with “yield” or
“income.” Of course, if the Fund’s earnings and profits in any fiscal
year should exceed the aggregate amount distributed under the Policy, no
return of capital to the Fund’s shareholders would occur, and the Fund
would make an additional distribution in the amount of that excess near
the end of the fiscal year.

During the current fiscal year which ends on October 31, 2015, the Fund
has made twelve (12) regular monthly distributions from November 1, 2014
to October 31, 2015, which in the aggregate equal $0.7214 per share. The
sources of the regular distributions paid during the month and current
fiscal year are estimated as follows:

Estimated source of regular monthly distributions            
    Estimated allocations

Net investment


Net realized short-
term capital gains


Net realized long-
term capital gains


Return of

Current month   $0.0679   $0.0376 (55%)   $0 (0%)   $0 (0%)   $0.0303 (45%)
YTD*   $0.7214   $0.5465 (76%)   $0 (0%)   $0 (0%)   $0.1749 (24%)

* Fiscal year-to-date.

The Fund periodically issues notices to shareholders and press releases
estimating the source characteristics of its monthly distributions. The
amounts and sources reported in these materials are only estimates and
are not being provided for tax reporting purposes. The actual amounts
and sources of the amounts for accounting and tax reporting purposes
will depend upon the Fund’s investment experience during its entire
fiscal year and may be subject to retroactive changes based on tax
regulations. The Fund sends shareholders a Form 1099-DIV (or a financial
intermediary should provide a shareholder with similar information) for
the calendar year that will tell shareholders how to report these
distributions for federal income tax purposes.

If you chose to receive your distributions in cash, a check should have
been sent to you or a credit should have been made on your financial
intermediary or Fund account statement. If you chose to reinvest your
distributions, that statement (or a subsequent one) should indicate the
additional shares purchased for your account in full and fractional
shares of the Fund’s common stock.

You should not draw any conclusions about the investment performance of
the Fund’s portfolio from the amount of the monthly distribution or from
the terms of the Fund’s Policy.

If you would like to change your distribution option, please write or
call your broker or, if you hold shares directly with the Fund, the
Fund’s distribution disbursing agent, BNY Mellon Investment Servicing,
at 1-800-331-1710. For more information about the Fund, please contact:
UBS Asset Management Closed-End Funds Desk, 888-793 8637.

Please find below additional information regarding the Fund’s
performance. Please note that this information is primarily based on the
Fund’s net asset value based performance, not its market price based
performance. Market price based performance for various periods is
included in the Fund’s most recent report to shareholders and is

Fund performance and distribution rate information

Fiscal year-to-date 11/1/2014 to 9/30/2015

Year-to-date Cumulative Net Asset Value Return1   -13.92%
Cumulative Distribution Rate2 7.28%
Preceding five-year period 10/1/2010 to 9/30/2015    
5 Years Average Annual Total Net Asset Value Return1 -1.11%
Average Annual Distribution Rate3 7.84%
Current Annualized Distribution Rate4   9.07%
1 The Fund’s net asset value (“NAV”) returns assume, for
illustration only, that dividends and other distributions, if any,
were reinvested at the NAV on the payable dates.
2 Cumulative Distribution Rate for the Fund’s fiscal
period (November 1, 2014 through September 30, 2015) measured on the
dollar value of distributions in the year-to-date period as a
percentage of the Fund’s NAV as of September 30, 2015.
3 Average Annual Distribution Rate is the simple
arithmetic average of the Annual Distribution Rates for the
preceding five-year period. The Annual Distribution Rates are
calculated by taking the total distributions paid during the period
divided by average daily NAV for the period.
4 The Current Annualized Distribution Rate is the current
monthly distribution rate annualized as a percentage of the Fund’s
NAV as of

September 30, 2015.

Please refer to the chart below for information about the Fund’s
historical NAVs, change in NAVs, total returns and distributions
paid. Performance data assumes reinvestment of distributions. Please
note that the table below reflects the characterization of
distributions on an accounting basis for a Fund’s fiscal year-end
period, which may or may not match the amounts reported to a
shareholder on a tax basis for a calendar year in a tax Form 1099 to
shareholders given (1) the differences between the periods measured
and (2) accounting/tax reporting differences.


(More information regarding accounting/tax reporting
differences may be found in the notes to the financial statements
included in the Fund’s shareholder reports.)


Fiscal year
Oct 31


daily NAV for


End of
NAV per


in NAV




rate 2


Net investment






Return of



Oct-10   $13.29   $14.16   9.85%   18.91%   7.96%   1.0579         1.0579
Oct-11   $13.47   $13.01   -8.12%   1.95%   10.42%   1.3723       0.0310   1.4033
Oct-12   $13.01   $13.45   3.38%   11.53%   7.60%   0.7104     0.2785     0.9889
Oct-13   $12.86   $11.93   -11.30%   -4.81%   7.02%   0.2618       0.6416   0.9034
Oct-14   $11.42   $11.14   -6.62%   -0.24%   6.60%   0.3246       0.4292   0.7538
Sep-151   $10.08   $8.98   -19.39%   -13.92%   6.48%           0.6535
Since inception (October 8, 1993) annualized total return: 8.19%


1 Figures are fiscal year to date, November 1, 2014
through September 30, 2015, and this period’s final distribution
characterization will not be completed until January 2016.

2 Distribution rate calculated by taking the total
distributions paid within the period divided by average daily NAV
for the period.

Any performance information reflects the deduction of the Fund’s fees
and expenses, as indicated in its shareholder reports, such as
investment advisory and administration fees, custody fees, exchange
listing fees, etc. It does not reflect any transaction charges that a
shareholder may incur when (s)he buys or sells shares (e.g., a
shareholder’s brokerage commissions).

Investing in the Fund entails specific risks, such as interest rate
risk and the risks associated with investing in the securities of
issuers in emerging market countries.
The value of the Fund’s
investments in foreign securities may fall due to adverse political,
social and economic developments abroad and due to decreases in foreign
currency values relative to the US dollar.
Investments in
emerging market issuers may decline in value because of unfavorable
government actions, greater risks of political instability or the
absence of accurate information about emerging market
issuers. Further detailed information regarding the Fund, including a
discussion of principal objectives, principal investment strategies and
principal risks, may be found in the fund overview located at
You may also request copies of the fund overview by calling the
Closed-End Funds Desk at 888-793 8637.

©UBS 2015. All rights reserved.
The key symbol and UBS are among
the registered and unregistered trademarks of UBS.


UBS Asset Management Closed-End Funds Desk: 888-793-8637