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Strategic Global Income Fund, Inc. – Increase in monthly distribution rate

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Strategic Global Income Fund, Inc. (the “Fund”) (NYSE:SGL) is a non-diversified, closed-end management investment company seeking a high level of current income as a primary objective and capital appreciation as a secondary objective through investments in US and foreign debt securities. The Fund today announced an increase in the annualized rate of the Fund’s monthly distribution paid pursuant to its managed distribution policy (the “Policy”).

The Fund’s Board of Directors (the “Board”) has determined that, effective with the June 2015 monthly distribution, the annualized rate of the Fund’s monthly distribution will be increased from 5% to 9% of the Fund’s net asset value (“NAV”), as determined on the last day on which the New York Stock Exchange is open for trading during the first week of the month. The Board anticipates that the increased rate will remain in effect for at least twelve months absent unforeseen circumstances. The amount of the Fund’s May distribution, previously announced in a press release issued on May 11, 2015, will remain unchanged.

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 this increase causes the aggregate amount distributed by the Fund to exceed current and accumulated earnings and profits, the amount of the excess would constitute a return of capital to shareholders.

The Board of Directors of the Fund adopted the Policy in May 1998. Pursuant to the Policy with respect to distributions paid from May 1998 through January 2000, the annualized rate had been 8%; from January 2000 through May 2005, the annualized rate had been 10%; from June 2005 through July 2009, the annualized rate had been 8%; from August 2009 through May 2011, the annualized rate had been 7%; from June 2011 through May 2014, the annualized rate had been 6%; and from June 2014 through May 2015, the annualized rate has been 5%.

The Board believes that the increased rate is appropriate based upon the recommendation of UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment adviser, and in light of ongoing consideration of efforts to reduce the discount to NAV at which the Fund’s shares recently have traded. Historically, UBS Global AM and the Board have sought to maintain distribution rates that are 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 current discount at which the Fund’s shares trade. UBS Global AM believes that increasing the annualized distribution rate may help to reduce the Fund’s trading discount.

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, 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.

The Fund estimates the source characteristics of its monthly distributions. The amounts and sources reported 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 the remainder of its fiscal year and may be subject to retroactive changes based on tax regulations. The actual sources of the Fund’s regular monthly distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing. The Fund sends shareholders a Form 1099-DIV (or a financial intermediary should provide an investor with similar information) for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.

Monthly distributions based on a fixed percentage of the Fund’s NAV may require the Fund to make multiple distributions of long-term capital gains during a single fiscal year. The Fund has received exemptive relief from the Securities and Exchange Commission that enables it to do so.

The Fund’s Board receives recommendations from UBS Global AM 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. The Fund’s Board intends to maintain the 9% annualized distribution rate for at least the next twelve months absent unforeseen circumstances; 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 currently unforeseen, changed circumstances. 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.

Investors 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.

Investing in the Fund entails specific risks, such as interest rate, credit and the risks associated with investing in the securities of non-US issuers, including those located 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. 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 http://www.ubs.com/closedendfundsinfo. You may also request copies of the fund overview by calling the Closed-End Funds Desk at 888-793 8637.

(c)UBS 2015. All rights reserved.

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

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