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 debt securities of emerging market debt issuers, today announced its performance for the fiscal fourth quarter and fiscal year ended October 31, 2015.

For the fourth quarter ended October 31, 2015, the Fund's earnings from net investment income (excluding short-term capital gains) were $2,399,074, equal to $0.11 per share. During this period, the Fund paid monthly distributions (which may be comprised of net investment income and return of capital) of $4,495,420, equal to $0.21 per share. Total net realized and unrealized losses from investment activities were $(7,019,361), equal to $(0.33) per share, for the same period.

For the twelve months ended October 31, 2015, the Fund’s earnings from net investment income were $11,785,453, equal to $0.55 per share.1 During this period, the Fund paid distributions (which may be comprised of net investment income and return of capital) of $15,576,350, equal to $0.72 per share. Total net realized and unrealized losses from investment activities were $(37,337,575), equal to $(1.73) per share for the same period.

On October 31, 2015, total net assets of the Fund were $199,550,300. The net asset value per share was $9.24, based on 21,591,836 shares outstanding.

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 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 may help to reduce the Fund's trading discount.

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 that began in June 2015, 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 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 will send 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.

Monthly distributions based on a fixed percentage of the Fund’s net asset value 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.

Important Note: As previously announced in a press release issued on October 13, 2015, based upon the recommendation of UBS Asset Management (Americas) Inc., the Fund's investment advisor, the Fund's Board of Directors determined that liquidation and dissolution of the Fund is in the best interests of the Fund's shareholders. A proposed plan of liquidation will be submitted for the approval of the Fund’s shareholders at the Fund’s February 2016 annual meeting of shareholders. If the shareholders approve of the proposed plan, the liquidation and dissolution of the Fund will take place as soon as reasonably practicable, but in no event later than December 31, 2016 (absent unforeseen circumstances).

Any Fund 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 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.

1 The current quarter's net investment income is derived directly from the accounting records which may be different than net investment income for financial statement reporting purposes included in the Fund's shareholder report. This represents a methodology change from prior earnings releases that utilized adjusted net investment income for financial statement reporting purposes. Therefore, prior reported numbers may not be directly comparable to those noted above and going forward.

©UBS 2015. All rights reserved.

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