City of London's Approach to CEF Corporate Governance

NEW YORK, NY--(Marketwire - Sep 7, 2011) - City of London Investment Management Company Limited ("City of London"), a significant long-term investor in closed-end funds, would like to extend an invitation for you to participate in a live Webinar covering their 2011 Statement on Corporate Governance and Voting Policy for Closed-End Funds on Thursday, September 8th at 11:00 a.m. (EDT).

First published in 1999, this report identifies what City of London considers the current 'best practices' in corporate governance of Closed-End Funds. It is addressed to Boards, Managers, Shareholders, Regulators, Attorneys and the professional investment community.

The presentation will be given by Barry Olliff, Chief Investment Officer of City of London. Barry will elaborate on City of London's 'core values' for Corporate Governance for Closed-End Funds ("CEF"). He will describe the firm's role as an engaged shareholder to ensure that Boards are aware of their views and consider the wider implications of their actions and to review the performance of Boards to adhere to their 'Continuing Obligations.'

Refocusing Responsibilities
This document attempts to apportion responsibility to CEF Directors and all parties that are involved with these Funds in working out their separate roles. It could be said that in certain jurisdictions the responsibilities of these participants have become blurred. The 2011 version of the Corporate Governance Document refocuses these responsibilities and ensures that each of the participants is provided with City of London's view as to how they should work together on behalf of the shareholders who are paying fees to CEF Directors to safeguard their interest.

The following topics of discussion include:

• The need for Board independence combined with outreach and knowledge.
• Limiting the number of Funds a Director can oversee and their tenure. Full support of genuinely qualified Independent CEF Directors at a higher remuneration.
• Inability for Shareholders to vote "no" against Directors and the misuse of Broker Non-Vote laws.
• Why Unitary Boards are not in the best interest of CEF Shareholders.
• Demonstration of management control over critical aspects of the Fund.
• "Long-term" investors are not everlasting: Boards need to understand and support investors to achieve their objectives.
• Shareholders are the owner of the business. Boards need to be aware of, and sensitive to, the views of Shareholders and allow them involvement in changes to the Fund.
• The Board, not the Manager, is responsible for managing the discount.
• The importance of the selection and evaluation of benchmark indices.
• Drop the Fair Value Pricing ('FVP') of CEFs: The FVP is undermining the US CEF industry.
• Expect to see the 'highest standards' from all parties paid by Shareholders to run the Fund.

Please find the link to the advance copy of the document for your review:

http://www.citlon.co.uk/reg_reports/CorporateGovernance9_11.pdf

We hope you can join us for this live event and look forward to your participation as there will be a Q&A period following the presentation. If you are unable to attend, you can listen to the presentation afterwards at http://www.citlon.co.uk/corp_gov_statements.php

TO REGISTER FOR THE EVENT: http://mediazone.brighttalk.com/event/aristineadvisers/2d1ef8f39d-5463-intro