Strategic Global Income Fund, Inc. (the “Fund”) (NYSE:SGL) today announced its performance for the first fiscal quarter ended February 29, 2016.

For the first fiscal quarter ended February 29, 2016, the Fund's earnings from net investment income (excluding short-term capital gains) were $1,722,490, equal to $0.09 per share.1 During this period, the Fund paid monthly distributions (which may be comprised of net investment income, net realized capital gains and/or return of capital) of $3,746,712, equal to $0.21 per share. Total net realized and unrealized losses from investment activities were $(5,800,040), equal to $(0.32) per share, for the same period.

On February 29, 2016, total net assets of the Fund were $160,485,881. The net asset value per share was $8.79, based on 18,258,828 shares outstanding.

The Managed Distribution Policy.

The Fund adopted a managed distribution policy ("Policy") in May 1998. Under the Policy, the Fund makes regular monthly distributions at an annualized rate equal to a stated percentage 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 the month. The annualized distribution rate is reassessed by the Fund’s Board, on a periodic basis and no less frequently than annually. In connection with its reassessment of the distribution rate, the Board receives recommendations from UBS Asset Management (Americas) Inc. (“UBS AM”), the Fund’s investment advisor. The Board has changed the distribution rate several times over the years.

Increased Rate of Distribution.

As previously disclosed in a press release dated May 20, 2015, the Fund’s Board increased the annualized rate of the Fund’s monthly distribution from 5% to 9%, effective with the June 2015 monthly distribution. The Fund’s last monthly distribution is to be paid at the end of April 2016. The Fund is in the process of being liquidated and expects to make a final liquidating distribution to shareholders no later than May 25, 2016. The actual date of the final distribution will be announced in a subsequent press release.

1

The current 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.

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 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.

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 its entire 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 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.

Investors should not draw any conclusions about the Fund’s investment performance from the amount of the monthly distribution or from the terms of the Fund’s Policy.

Important Note: As discussed in a press release dated April 1, 2016, the Fund Is in the process of being liquidated and expects to make a final liquidating distribution to shareholders in May 2016.

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).

©UBS 2016. All rights reserved.

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UBS Asset ManagementClosed-End Funds Desk: 888-793 8637ubs.com

Strategic Global Income Fund, Inc. (NYSE:SGL)
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