Global High Income Fund Inc. — Distribution Characteristics for February 2016

NEW YORK–(BUSINESS WIRE)–Global High Income Fund Inc. (the “Fund”) (NYSE:GHI) today announced its
distribution characteristics for the month of February 2016.

The following notice was sent to shareholders today:

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

DISTRIBUTION NOTICE
February 2016

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 February 8, 2016, the Fund’s Board of Directors declared a regular
monthly distribution of $0.0657 per share. This distribution is payable
on February 29, 2016 to shareholders of record as of February 18, 2016.

The ex-distribution date was February 16, 2016.

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 was open for trading during the
first week of a 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.

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 for the month of
March 2016. As discussed in a press release dated February 24, 2016, the
Fund is in the process of being liquidated and expects to make a final
liquidating distribution to shareholders in April 2016. (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.)

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 is expected to end in April 2016
upon the liquidation of the Fund, the Fund has made four (4) regular
monthly distributions from November 1, 2015 to February 29, 2016, in the
aggregate equal $0.2682 per share. The sources of the regular
distribution paid during the month and current fiscal year are estimated
as follows:

     
Estimated source of regular monthly distributions
    Estimated allocations
    Distributions  

Net investment
income

 

Net realized short-
term capital gains

 

Net realized long-
term capital gains

 

Return of
capital

Current month   $0.0657   $0.0328 (50%)   $0 (0%)   $0 (0%)   $0.0329 (50%)

YTD*

  $0.2682   $0.1603 (60%)   $0 (0%)   $0 (0%)   $0.1079 (40%)
 

* 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) 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
different.

 
Fund performance and distribution rate information    
Fiscal year-to-date 11/1/2015 to 01/31/2016    
Year-to-date Cumulative Net Asset Value Return1 -3.46%
Cumulative Distribution Rate2 2.32%
Preceding five-year period 2/1/2011 to 01/31/2016    
5 Years Average Annual Total Net Asset Value Return1 -0.82%
Average Annual Distribution Rate3 7.34%
Current Annualized Distribution Rate4   9.04%

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, 2015 through January 31, 2016) measured on the
dollar value

of distributions in the year-to-date period as a percentage of the
Fund’s NAV as of January 31, 2016.

 

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

January 31, 2016

 
 

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 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
ending
Oct 31

 

Average
daily NAV
for period

 

End of
period
NAV per
share

 

Change
in NAV

 

Total
returns

 

Distribution
rate 3

 

Net investment
income
distributions
paid

 

Short-term
distributions
paid

 

Long-term
distributions
paid

 

Return
of
capital

 

Total
distributions
paid

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
Oct-15   $10.01   $9.24   -17.06%   -10.77%   7.21%   0.1084       0.6130   0.7214

Jan-161

  $8.91   $8.72   -5.63%   -3.46%   2.27%           0.2025
Since inception (October 8, 1993) annualized total return: 8.07%
 

1 Figures are fiscal year to date, November 1, 2015
through January 31, 2016, and this period’s final distribution
characterization will not be

completed until after the liquidation of the Fund (expected in
April 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).

 

Important Note: As discussed in a press release dated February
24, 2016, the Fund is in the process of being

liquidated and expects to make a final liquidating distribution
to shareholders in April 2016.

 

©UBS 2016. All rights reserved.

The key symbol and UBS are among the registered and unregistered
trademarks of UBS.

Contacts

UBS Asset Management
Closed-End Funds Desk, 888-793-8637
ubs.com