News Column

Global High Income Fund Inc. — Distribution Characteristics for July 2014

July 31, 2014

NEW YORK--(BUSINESS WIRE)-- Global High Income Fund Inc. (the ďFundĒ) (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 July 2014.

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

DISTRIBUTION NOTICE

July 2014

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 July 14, 2014, the Fund's Board of Directors declared a regular monthly distribution of $0.0585 per share. This distribution is payable on July 31, 2014 to shareholders of record as of July 24, 2014. The ex-distribution date was July 22, 2014.

The Fund adopted a managed distribution policy ("Policy") in December 1999. Pursuant to the Policy as currently in effect, the Fund makes regular monthly distributions at an annualized rate equal to 6% of the Fundís 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%, which, consistent with the policy, in any given month may have been comprised of a combination of net investment income, short- and/or long-term capital gains, and/or a return of capital.) The Fundís Board receives recommendations from UBS Global Asset Management (Americas) Inc., the Fundís investment advisor, periodically, and no less frequently than annually will reassess the annualized percentage of net assets at which the Fundís monthly distributions will be made. The Fundís Board may change or terminate the managed distribution policy at any time without prior notice to Fund shareholders; any such change or termination may have an adverse effect on the market price for the Fundís shares.

To the extent that the Fundís taxable income in any fiscal year exceeds the aggregate amount distributed based on a fixed percentage of its net asset value, the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year. To the extent that the aggregate amount distributed by the Fund based on a fixed percentage of its net asset value exceeds its current and accumulated earnings and profits, 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 shareholders. A return of capital distribution does not necessarily reflect the Fundís investment performance and should not be confused with ďyieldĒ or ďincome.Ē

During the current fiscal year which ends on October 31, 2014, the Fund has made nine (9) regular monthly distributions from November 1, 2013 to July 31, 2014, which in the aggregate equal $0.5827 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
Distributions

Net investment

income

Net realized short-

term capital gains

Net realized long-

term capital gains

Return of

capital

Current month $0.0585$0.0471 (81%) $0.0046 (8%) $0.0068 (11%) $0 (0%)
YTD* $0.5827$0.4149 (71%) $0 (0%) $0 (0%) $0.1678 (29%)


* 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 Fundís 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 Fundís investment performance from the amount of the monthly distribution or from the terms of the Fundís managed distribution 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 Global Asset Management Closed-End Funds Desk, 888-793 8637.

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

Fund performance and distribution rate information
Fiscal year-to-date 11/1/2013 to 6/30/2014
Year-to-date Cumulative Net Asset Value Return1 2.77%
Cumulative Distribution Rate2 4.48%
Preceding five-year period 7/1/2009 to 6/30/2014
5 Years Average Annual Total Net Asset Value Return1 8.07%
Average Annual Distribution Rate3 8.10%
Current Annualized Distribution Rate4 5.99%

1

The Fundís net asset value (ďNAVĒ) 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 Fundís fiscal period (November 1, 2013 through June 30, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Fundís NAV as of June 30, 2014.

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 Fundís NAV as of June 30, 2014.



Please refer to the chart below for information about the Fundís historical NAVs, change in NAVs, total returns and distributions paid. Performance data assumes reinvestment of distributions.

Fiscal year

ending

Oct 31

Average

daily NAV

for period

End of

period

NAV per

share

Change

in NAV

Total

returns

Distribution

rate 2

Net investment

income

distributions

paid

Short-term

distributions

paid

Long-term

distributions

paid

Return

of

capital

Total

distributions

paid

Oct-09 $11.31$12.89 31.26% 43.02% 8.64% 0.7167 - - 0.2600 0.9767
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
Jun-141$11.41$11.71 -1.84% 2.77% 4.59% - - - - 0.5242
Since inception (October 8, 1993) annualized total return: 9.66%



1 Figures are fiscal year to date, November 1, 2013 through June 30, 2014, and this period's final distribution characterization will not be completed until January 2015.
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 Fundís 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 shareholderís 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.

©UBS 2014. All rights reserved.

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




UBS Global Asset Management

Closed-End Funds Desk: 888-793-8637

ubs.com

Source: Global High Income Fund Inc.


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