SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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THE FIRST AUSTRALIA FUND, INC.
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FIRST AUSTRALIA
NEWS RELEASE FUND
FOR IMMEDIATE RELEASE
Contacts:
Laurence Freedman/Brian Sherman Richard Strickler, EquitiLink USA
The First Australia Fund, Inc. 800-522-5465
011-612-9950-2888
http://www.equitilink.com
Rhonda Barnat/Mike Pascale, Abernathy MacGregor Frank
212-371-5999
INSTITUTIONAL SHAREHOLDER SERVICES RECOMMENDS FIRST
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AUSTRALIA FUND SHAREHOLDERS RE-ELECT INCUMBENT DIRECTORS
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ISS Recommends Vote Against All of Deep Discount Advisors' Proposals
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New York, NY, April 15, 1999 - The First Australia Fund, Inc. (AMEX: IAF, PCX:
IAF), a closed-end equity fund, announced today that Institutional Shareholder
Services (ISS) has recommended that its clients vote to re-elect the Fund's
incumbent Directors and vote against all of the proposals of Deep Discount
Advisors and Ron Olin Investment Management Company (DDA).
ISS is the nation's premier independent proxy advisory firm whose clients
include some of the largest institutional investors in the world.
In its report, ISS stated, "The current Board is a group of individuals highly
qualified to oversee a fund that invests in Australian equities."
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Page Two
First Australia Fund Chairman Laurence Freedman said, "We are extremely pleased
with ISS's recommendation. It has recognized both the Fund's outstanding
performance and the Board's commitment to delivering value for all
shareholders." President, Brian Sherman said, " The First Australia Fund is the
only vehicle for most investors to participate in Australia's growing and
vibrant economy through the Fund's investment in Australian Stock Exchange
listed companies. We strongly urge shareholders to follow the ISS recommendation
and to vote for the election of Directors and against all of DDA's proposals."
ISS also said, "The fund's performance has improved greatly, and the discount
has decreased significantly in the past seven months, partly as a result of the
booming Australian market."
ISS went on to note that, although DDA suggested in its proxy materials methods
by which shareholders could sell their shares at net asset value, "On speaking
with DDA and on doing additional research, ISS learned of two closed-end funds
in which such methods were used, both of which ended in the dissolution of the
fund or its merging into another fund."
The First Australia Fund, Inc. is a closed-end fund organized to provide
investors a vehicle for long-term appreciation and current income through
investment primarily in equity securities of Australian companies listed on the
Australian Stock Exchange. The Fund is managed by EquitiLink International
Management Limited and advised by EquitiLink Australia Limited. On January 31,
1999, 86.4% of the Fund's portfolio was held in industrial equities, which
includes the financial sector, 12.6% was held in resource equities and 1.0% was
held in cash. As of January 31, 1999, the Fund's total net assets amounted to
$154.4 million and the Fund's NAV was $8.98 per share. In December 1997, the
Board instituted a managed distribution policy. In 1998, the Board determined to
continue this distribution policy, which provides all shareholders with a high
cash distribution of approximately 12% per annum based on recent share prices.
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