Washington, D.C. 20549
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to shareholders
pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.
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Managed
Distribution Policy (unaudited)
The Board of Directors
of the Aberdeen Asia-Pacific Income Fund, Inc. (the "Fund") has authorized a managed distribution policy ("MDP")
of paying monthly distributions at an annual rate set once a year. The Fund's current monthly distribution is set at a rate of $0.0275
per share. With each distribution, the Fund will issue a notice to shareholders and an accompanying press release which will provide
detailed information regarding the amount and estimated composition of the distribution and other information required by the
Fund's MDP exemptive
order. The Fund's Board of Directors may amend or terminate the MDP at any time without prior notice to shareholders; however, at this
time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions
about the Fund's investment performance from the amount of distributions or from the terms of the Fund's MDP.
Distribution
Disclosure Classification (unaudited)
The
Fund's policy is to provide investors with a stable monthly distribution out of current income,
supplemented by realized capital gains and, to the extent necessary, paid-in capital.
The Fund is subject
to U.S. corporate, tax and securities laws. Under U.S. tax rules, the amount applicable to the Fund and character of distributable income
for each fiscal period depends on the actual exchange rates during the entire year between the U.S. Dollar and the currencies in which
Fund assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year.
Therefore, the exact
amount of distributable income for each fiscal year can only be determined as of the end of the Fund's fiscal year, October 31. Under
Section 19 of the Investment Company Act of 1940, as amended (the "1940 Act"), the Fund is required to indicate the sources
of certain distributions to shareholders. The estimated
distribution
composition may vary from month to month because it may be materially impacted by future income,
expenses and realized gains and losses on securities and fluctuations in the value of the currencies
in which the Fund's assets are denominated.
Based on generally
accepted accounting principles, the Fund estimates the distributions for the fiscal year commenced November 1, 2021, through the distributions
declared on June 9, 2022, consisted of 56% net investment income and 44% tax return of capital. The amounts and sources of distributions
reported in this report are only estimates and are not being provided for tax reporting purposes.
In January 2023,
a Form 1099-DIV will be sent to shareholders, which will state the final amount and composition of distributions and provide information
with respect to their appropriate tax treatment for the 2022 calendar year.
Aberdeen Asia-Pacific
Income Fund, Inc.
Letter
to Shareholders (unaudited)
Dear Shareholder,
We present this Semi-Annual Report, which covers the activities of Aberdeen
Asia-Pacific Income Fund, Inc. (the "Fund") for the six-month period ended April 30, 2022. The Fund's principal investment objective
is to seek current income. The Fund may also achieve incidental capital appreciation.
Total Investment Return1
For the six-month period ended April 30, 2022, the total return to shareholders
of the Fund based on the net asset value ("NAV") and market price of the Fund, respectively, are as follows:
NAV2,3 |
-12.5% |
Market
Price2 |
-20.6% |
For more information about Fund performance, please visit the Fund on
the web at www.aberdeenfax.com. Here, you can view quarterly commentary on the Fund's performance, monthly fact sheets, distribution and
performance information, and other Fund literature.
NAV, Market Price and Premium/Discount
The below table represents comparison from current six-month period end
to prior fiscal year end of market price to NAV and associated premium(+)/discount(-).
|
NAV |
Closing
Market
Price |
Premium(+)/
Discount(-) |
4/30/2022 |
$3.66 |
$3.20 |
-12.6% |
10/31/2021 |
$4.38 |
$4.22 |
-3.7% |
During the six-month period ended April 30, 2022, the Fund's NAV was
within a range of $3.65 to $4.39 and the Fund's market price traded within a range of $3.20 to $4.21. During the six-month period ended
April 30, 2022, the Fund's shares traded within a range of a premium(+)/discount(-) of -3.2% to -15.1%.
Portfolio Allocation
As of April 30, 2022, the Fund held 74.8% of its total investments in
Asian debt securities, 11.0% in Australian debt securities, 5.2% in Latin
America debt securities, 4.5% in European debt securities, 2.5% in U.S.
debt securities and 2.0% in African debt securities.
Of the Fund's total investments, excluding hedges, 50.7% were held in
U.S. Dollar denominated bonds issued by foreign issuers as of April 30, 2022. The rest of the Fund's currency exposure as of April 30,
2022 was 9.6% in the Australian Dollar, 34.2% in various Asian currencies, 5.2% in various Latin American currencies and 0.3% in various
European currencies.
Of the Fund's total investments, including hedges, 37.8% were held in
U.S. Dollar denominated bonds issued by foreign issuers as of April 30, 2022. The rest of the Fund's currency exposure as of April 30,
2022 was 9.0% in the Australian Dollar, 47.7% in various Asian currencies, 5.2% in various Latin American currencies and 0.3% in various
European currencies.
Credit Quality
As of April 30, 2022, 14.8% of the Fund's total investments were invested
in securities where either the issue or the issuer was rated A or better by S&P Global Ratings ("S&P")*, Moody's Investors
Services, Inc. ("Moody's")** or Fitch Ratings, Inc. ("Fitch")***
Managed Distribution Policy
Distributions to common shareholders for the six-month period ended April
30, 2022 totaled $0.165 per share. Based on the market price of $3.20 on April 30, 2022, the annualized distribution rate over the six-month
period ended April 30, 2022 was 10.3%. Based on the NAV of $3.66 on April 30, 2022, the annualized distribution rate was 9.0%. Since all
distributions are paid after deducting applicable withholding taxes, the effective distribution rate may be higher for those U.S. investors
who are able to claim a tax credit.
On May 10, 2022 and June 9, 2022, the Fund announced that it will pay
on May 31, 2022 and June 30, 2022, respectively, a distribution of U.S. $0.0275 per share to all shareholders of record as of May 20,
2022 and June 22, 2022, respectively.
The Fund's policy is to provide investors with
a stable monthly distribution out of current income, supplemented by realized capital
1 | Past performance is no guarantee of future results. Investment
returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may
be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and
administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. |
2 | Assuming the reinvestment of dividends and distributions. |
3 | The Fund's total return is based on the reported NAV for each
financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or
adjustments. |
* | S&P's ratings are expressed as letter grades that range
from 'AAA' to 'D' to communicate the agency's opinion of relative level of credit risk. Ratings from 'AA' to 'CCC' may be modified by
the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The investment grade category
is a rating from 'AAA' to 'BBB-'. |
** | Moody's is an independent, unaffiliated research company that
rates fixed income securities. Moody's assigns ratings on the basis of risk and the borrower's ability to make interest payments. Typically,
securities are assigned a rating from 'Aaa' to 'C', with 'Aaa' being the highest quality and 'C' the lowest quality. |
*** | Fitch is an international credit rating agency. Fitch ratings
range from AAA (reliable and stable) to D (high risk). |
Aberdeen Asia-Pacific Income Fund, Inc. |
1 |
Letter to Shareholders (unaudited)
(continued)
gains and, to the extent necessary, paid-in capital, which is a non-taxable
return of capital. This policy is subject to an annual review as well as regular review at the Board's quarterly meetings, unless market
conditions require an earlier evaluation.
The Fund is covered under exemptive relief received by the Fund's investment
manager from the U.S. Securities and Exchange Commission ("SEC") that allows the Fund to distribute long-term capital gains
as frequently as monthly in any one taxable year.
Fund's Leverage
The table below summarizes certain key terms of the Fund's current leverage:
|
Amount
($ in millions) |
Maturity |
Revolving
Credit Facility |
$70 |
August 3,
2022 |
10-Year
Series B
Senior Secured Notes |
$100 |
June 12, 2023 |
10-Year
Series A
Mandatory Redeemable
Preferred shares |
$50 |
June 27, 2023 |
15-Year
Series C
Senior Secured Notes |
$50 |
February 8, 2032 |
15-Year
Series D
Senior Secured Notes |
$100 |
August 10, 2032 |
15-Year
Series E
Senior Secured Notes |
$100 |
June 19, 2034 |
As at April 30, 2022, the Series A Mandatory Redeemable Preferred Shares
("MRPS"), with a liquidation value of $50 million, are rated A by Fitch and the combined $350 million 10-year and 15-Year Series
B, C, D and E Senior Secured Notes are rated A by Fitch Ratings.
We believe the Fund has been able to lock in an attractive rate cost
of borrowing and extend the maturity of the leverage facility while diversifying its borrowing structure during what we believe to be
a favorable current interest rate environment. A more detailed description of the Fund's leverage can be found in the Report of the Investment
Manager and the Notes to Financial Statements.
Open Market Repurchase Program
The Fund's policy is generally to buy back Fund shares on the open market
when the Fund trades at certain discounts to NAV and management believes such repurchases may enhance shareholder value. During the six-month
period ended April 30, 2022, the Fund did not repurchase any shares.
Portfolio Holdings Disclosure
The Fund's complete schedule of portfolio holdings for the second and
fourth quarters of each fiscal year are included in the Fund's semiannual and annual reports to shareholders. The Fund files its
complete schedule of portfolio holdings with the Securities and Exchange
Commission (the "SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These
reports are available on the SEC's website at sec.gov. The Fund makes the information available to shareholders upon request and without
charge by calling Investor Relations toll-free at 1-800-522-5465.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine
how to vote proxies relating to portfolio securities, and information regarding how the Fund voted proxies relating to portfolio securities
during the most recent 12 month period ended June 30 is available by August 31 of the relevant year: (i) upon request and without charge
by calling Investor Relations toll-free at 1-800-522-5465; and (ii) on the SEC's website at sec.gov.
Unclaimed Share Accounts
Please be advised that abandoned or unclaimed property laws for certain
states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its
own definition of unclaimed property, and Fund shares could be considered "unclaimed property" due to account inactivity (e.g.,
no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund's transfer
agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Fund's
transfer agent will follow the applicable state's statutory requirements to contact you, but if unsuccessful, laws may require that the
shares be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may
involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial
adviser or the Fund's transfer agent.
COVID-19
The COVID-19 pandemic has caused major disruption to economies and markets
around the world, including the United States. Financial markets have experienced losses, and some sectors of the economy and individual
issuers have experienced particularly large losses. Although many financial markets have generally recovered from such losses, market
volatility has continued. These circumstances may continue for an extended period of time, and as a result may affect adversely the value
and liquidity of the Fund's investments. The rapid development and fluidity of this situation precludes any prediction as to the ultimate
adverse impact of COVID-19 on economic and market conditions, and, as a result, present uncertainty and risk with respect to the Fund
and the performance of its investments and ability to pay distributions. The full extent of the impact and effects of COVID-19 will depend
on future developments, including, among other factors,
2 |
Aberdeen Asia-Pacific Income Fund, Inc. |
Letter
to Shareholders (unaudited) (concluded)
the duration and spread of the outbreak, along with related travel advisories,
quarantines and restrictions, the recovery time of the disrupted supply chains and industries, the impact of labor market interruptions,
the impact of government interventions, and uncertainty with respect to the duration of the global economic slowdown.
LIBOR
Under the revolving credit facility, the Fund is charged interest on
amounts borrowed at a variable rate, which may be based on the London Interbank Offered Rate ("LIBOR") plus a spread. The Fund
may invest in certain debt securities, derivatives or other financial instruments that utilize LIBOR as a "benchmark" or "reference
rate" for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority ("FCA"), which
regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. However, subsequent announcements by the FCA, the
LIBOR administrator and other regulators indicate that it is possible that the most widely used LIBOR rates may continue until mid-2023.
It is anticipated that LIBOR ultimately will be discontinued or the regulator will announce that it is no longer sufficiently robust to
be representative of its underlying market around that time. Although financial regulators and industry working groups have suggested
alternative reference rates, such as European Interbank Offered Rate ("EURIBOR"), Sterling Overnight Interbank Average Rate
("SONIA") and Secured Overnight Financing Rate ("SOFR"), global consensus on alternative rates is lacking and the
process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes
to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse
impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund's
performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include
revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates
may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments
or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging
strategies, adversely affecting the Fund's performance. Furthermore, the risks associated with the expected
discontinuation of LIBOR and transition may be exacerbated if the work
necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner.
abrdn Rebrand
abrdn plc, formerly known as Standard Life Aberdeen plc, was renamed
on September 27, 2021. In connection with this re-branding, the entities within abrdn plc group, including investment advisory entities,
have been or will be renamed in the near future. The Fund's Board has approved a change in the name of the Fund from "Aberdeen Asia-Pacific
Income Fund, Inc." to "abrdn Asia-Pacific Income Fund, Inc." effective on or about June 30, 2022. The internet address
for the Fund's website will also change from www.aberdeenfax.com to www.abrdnfax.com, effective as of June 30, 2022. The old address will
continue to redirect to the new address for at least a year.
Investor Relations Information
As part of abrdn's commitment to shareholders, we invite you to visit
the Fund on the web at www.aberdeenfax.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance
information, and other Fund literature.
Enroll in abrdn's email services and be among the first to receive the
latest closed-end fund news, announcements, videos and other information. In addition, you can receive electronic versions of important
Fund documents, including annual reports, semi-annual reports, prospectuses, and proxy statements. Sign up today at https://www.abrdn.com/en-us/cefinvestorcenter/contact-us/preferences.
Contact Us:
| · | Visit: https://www.abrdn.com/en-us/cefinvestorcenter |
| · | Email: Investor.Relations@abrdn.com; or |
| · | Call: 1-800-522-5465 (toll free in the U.S.). |
Yours sincerely,
/s/ Christian Pittard
Christian Pittard
President
All amounts are U.S. Dollars unless otherwise
stated.
Aberdeen Asia-Pacific Income Fund, Inc. |
3 |
Loan Facilities and the Use of Leverage
(unaudited)
Loan Facilities and the Use of Leverage
The amounts borrowed under the Revolving Credit Facility, the Notes and
the Series A MRPS (each as defined below) may be invested to seek to return higher rates than the rates pursuant to which interests or
dividends are paid under such forms of leverage. However, the cost of leverage could exceed the income earned by the Fund on the proceeds
of such leverage. To the extent that the Fund is unable to invest the proceeds from the use of leverage in assets which pay interest at
a rate which exceeds the rate paid on the leverage, the yield on the Fund's common stock will decrease. In addition, in the event of a
general market decline in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because
of the additional assets purchased with the proceeds of the leverage.
The Fund employed leverage obtained via bank borrowing and other forms
of leverage during the six-month period ended April 30, 2022. On August 4, 2021, the Fund executed an amendment and assignment of the
$100,000,000 senior secured revolving credit loan facility (the "Revolving Credit Facility") with a syndicate of banks with
The Bank of Nova Scotia, acting as administrative agent. On November 16, 2021, the Fund executed an amendment of the Credit Agreement
that increased the Revolving Credit Facility to $150,000,000. As of October 31, 2021, the Fund had $100,000,000 on the revoling credit
facility. Between November 22, 2021 and March 15, 2022, the Fund either drew down or paid down a net amount of $30,000,000. As of April
30, 2022, the Fund's outstanding balance on the revolving credit facility was $70,000,000.
At April 30, 2022, the Fund had $350,000,000 in aggregate principal amount
of senior secured notes rated `A' by Fitch Ratings outstanding ($100,000,000 in 3.69% Series B Senior Secured Notes due June 12, 2023,
$50,000,000 in 3.87% Series C Senior Secured Notes due February 8, 2032, $100,000,000 in 3.70% Series D Senior Secured Notes due August
10, 2032 and $100,000,000 in 3.73% Series D Senior Secured Notes due June 19, 2034) (collectively, the "Notes").
At April 30, 2022, the Fund had 2,000,000 shares of Series A MRPS, rated
`A' by Fitch ratings, outstanding with an aggregate liquidation preference of $50,000,000 ($25 per share).
The Fund's leveraged capital structure creates special risks not associated
with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the Revolving Credit Facility
and the Notes may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund
and against the net assets of the Fund in liquidation. The Fund is
limited in its ability to declare dividends or other distributions under the terms of the various forms of leverage. In the event of
an event of default under the Revolving Credit Facility, the lenders have the right to cause a liquidation of the collateral (i.e.,
sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lenders may be able to control
the liquidation as well. In the event of an event of default under the Note Purchase Agreement, the holders of the Notes have the
right to cause a liquidation of the collateral (i.e., cause the sale of portfolio securities and other assets of the Fund). A
liquidation of the Fund's collateral assets in an event of default, or a voluntary paydown of the Revolving Credit Facility, Series
A MRPS or the Notes in order to avoid an event of default, would typically involve administrative expenses and sometimes penalties.
Additionally, such liquidations often involve selling off of portions of the Fund's assets at inopportune times which can result in
losses when markets are unfavorable.
Each of the Revolving Credit Facility Agreement, the Note Purchase Agreement,
and the Securities Purchase Agreement relating to the Series A MRPS includes usual and customary covenants for the applicable type of
transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments,
such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could
impede the Fund's investment manager, investment adviser, or sub-adviser from fully managing the Fund's portfolio in accordance with the
Fund's investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead
to the cancellation of any and/or all of the forms of leverage. As of April 30, 2022, the Fund was in compliance with all covenants under
the agreements relating to the various forms of leverage. In July 2017, the FCA announced that it will no longer persuade or compel banks
to submit rates for the calculation of LIBOR after 2021. Such announcement indicates that the continuation of LIBOR on the current basis
cannot and will not be guaranteed after 2021. However, for U.S. dollar LIBOR, it now appears that the relevant date may be deferred to
June 30, 2023 for the most common tenors (overnight and one, three, six and 12 months).
On May 14, 2020, Fitch Ratings downgraded to 'AA' from 'AAA' the ratings
of the outstanding Series B-E senior secured notes issued by the Fund and has placed the outstanding Series B-E senior secured note ratings
on Rating Watch Negative (RWN). On the same date, Fitch Ratings also placed the 'AA' rated Series A MRPS on RWN.
4 | Aberdeen Asia-Pacific
Income Fund, Inc. |
Loan
Facilities and the Use of Leverage (unaudited) (concluded)
On February 12, 2021, Fitch Ratings ("Fitch"), after a review
of the Fund under a revised rating criteria, downgraded the ratings assigned to the Senior Notes from 'AA' to "A' and the ratings
assigned to the MRPS from 'AA' to 'A'. The ratings were also removed from Ratings Watch Negative and removed from Under Criteria Observation.
Interest Rate Swaps
The Fund may enter into interest rate swaps to gain interest rate exposure
and hedge interest rate risk. As of April 30, 2022 the Fund held $70 million in Interest Rate Swaps.
As of April 30, 2022, the Fund held interest rate swap agreements with
an aggregate notional amount of $70 million, which represented 100% of the Fund's Revolving Credit Facility balance outstanding based
upon the notional amounts set forth below.
Remaining
Term as of
April 30, 2022 |
|
Receive/(Pay)
Floating
Rate |
|
Amount
(in $ millions) |
|
Fixed
Rate
Payable (%) |
|
55
months |
|
Receive |
|
$10.0 |
|
1.33% |
|
57
months |
|
Receive |
|
$
6.0 |
|
0.75% |
|
77
months |
|
Receive |
|
$
9.0 |
|
1.17% |
|
96
months |
|
Receive |
|
$15.0 |
|
0.62% |
|
96
months |
|
Receive |
|
$5.0 |
|
0.67% |
|
109
months |
|
Receive |
|
$25.0 |
|
0.72% |
|
A significant risk associated with interest rate swaps is the risk that
the counterparty may default or file for bankruptcy, in which case the Fund would bear the risk of loss of the amount expected to be received
under the swap agreements. There can be no assurance that the Fund will have an interest rate swap in place at any given time nor can
there be any assurance that, if an interest rate swap is in place, it will be successful in hedging the Fund's interest rate risk with
respect to the loan facility. The implementation of this strategy is at the discretion of the Leverage Committee of the Board.
Acknowledging historically low level of short-rates, the Fund used interest
rate swap agreements to hedge up to 100% of the interest rate risk on the revolving credit facility thereby locking in the cost of leverage
used by the Fund.
In recent months, the market's view of policy rates has drastically changed,
as the economic recovery endures, and inflationary pressures have become more elevated and less transient in nature. Additionally, the
Federal Reserve proceeded with a tightening of monetary policy at a more aggressive pace than initially expected. On May 10, 2022, the
Fund sold its interest rate swap agreements with an aggregate notional amount of $70 million.
Aberdeen Asia-Pacific Income
Fund, Inc. |
5 |
Total
Investment Return (unaudited)
The following table summarizes the average annual Fund performance for
the 6-month, 1-year, 3-year, 5-year and 10-year periods ended as of April 30, 2022.
|
|
6
Months |
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
|
Net Asset
Value (NAV)1 |
|
-12.5% |
|
-15.1% |
|
-0.88% |
|
0.54% |
|
0.71% |
|
Market Price |
|
-20.6% |
|
-18.3% |
|
-0.27% |
|
-0.38% |
|
-0.64% |
|
Blended Benchmark* |
|
-8.1% |
|
-9.6% |
|
1.1% |
|
1.8% |
|
1.7% |
|
Bloomberg Asian-Pacific
Aggregate Index1 |
|
-8.8% |
|
-10.6% |
|
-1.4% |
|
-0.3% |
|
-2.0% |
|
| * | The blended benchmark is summarized in the table below: |
Index |
|
Weight |
|
Bloomberg
AusBond Composite Index2 |
|
10% |
|
Markit
iBoxx Asian Local Bond Index3 |
|
40% |
|
JP
Morgan Asia Credit Index – Diversified4 |
|
35% |
|
JP
Morgan GBI Emerging Market Global Diversified5 |
|
15% |
|
Performance of a $10,000 Investment (as of April 30, 2022)
This graph shows the change in value of a hypothetical investment of
$10,000 in the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
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The Fund changed its investment strategies effective June 24, 2020, following
shareholder approval of the changes. Performance information for periods prior to June 24, 2020 does not reflect the current investment
strategy. Please see Note 1 in the Notes to Financial Statements for details.
| 1 | The Bloomberg Asian-Pacific Aggregate Index contains fixed-rate,
investment-grade securities denominated in Australian dollar, Chinese yuan, Hong Kong dollar, Indonesian rupiah, Japanese yen, Malaysian
ringgit, New Zealand dollar, Singapore dollar, South Korean won and Thai baht. The index is composed primarily of local currency sovereign
debt, but also includes government-related, corporate and securitized bonds. |
| 2 | The Bloomberg AusBond Composite Bond Index includes investment
grade fixed interest bonds of all maturities issued in the Australian debt market under Australian law. |
| 3 | The Market iBoxx Asia Local Bond Indices ("iBoxx ALBI")
is designed to reflect the performance of local currency bonds from 11 Asian local currency bond markets. |
| 4 | The JP Morgan Asian Credit Diversified Index is a variant of
the JP Morgan Asia Credit Index (JACI) focuses on reducing concentration risk of the JACI index to anyparticular market. The JACI is
a broad-based securities market index which consists of liquid US dollar-denominated debt securities issued out of Asia ex-Japan region. |
| 5 | The JP Morgan GBI Emerging Market Global Diversified tracks
performance of global EM sovereign local currency bond markets. Weighting methodology is designed to deliver a diversified universe of
issuers. |
6 | Aberdeen Asia-Pacific
Income Fund, Inc. |
Total Investment Return (unaudited)
(concluded)
abrdn Inc. has entered into an agreement with the Fund to limit investor
relations services fees. This agreement aligns with the term of the advisory agreement and may not be terminated prior to the end of the
current term of the advisory agreement. Returns represent past performance. Total investment return at NAV is based on changes in the
NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment
program. All return data at NAV includes fees charged to the Fund, which are listed in the Fund's Statement of Operations under "Expenses."
Total investment return at market value is based on changes in the market price at which the Fund's shares traded on the NYSE American
during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment
program. The Fund's total investment return is based on the reported NAV on the financial reporting period ended April 30, 2022. Because
the Fund's shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore,
returns are calculated based on both market price and NAV. Past performance is no guarantee of future results. The performance
information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund. The
current performance of the Fund may be lower or higher than the figures shown. The Fund's yield, return, market price and NAV will fluctuate.
Performance information current to the most recent month-end is available at www.aberdeenfax.com or by calling 800-522-5465.
The annualized total operating expense ratio based on the six-month
period ended April 30, 2022 was 2.90%. The annualized total operating expense ratio, excluding interest expense and distributions to Series
A Mandatory Redeemable Preferred Shares, based on the six-month period ended April 30, 2022 was 1.26%.
Aberdeen Asia-Pacific Income Fund, Inc. |
7 |
Portfolio
Composition (unaudited)
Quality of Investments(1)
As of April 30, 2022, 14.8% of the Fund's total investments were invested
in securities where either the issue or the issuer was rated "A" or better by S&P, Moody's or Fitch or, if unrated, was
judged to be of equivalent quality by the Investment Manager. The table below shows the asset quality of the Fund's portfolio as of April
30, 2022, compared to October 31, 2021 and April 30, 2021:
Date |
|
AAA/Aaa
% |
|
AA/Aa
% |
|
A
% |
|
BBB/Baa
% |
|
BB/Ba*
% |
|
B*
% |
|
CCC*
% |
|
NR**
% |
|
April 30, 2022 |
|
4.4 |
|
4.6 |
|
5.8 |
|
28.0 |
|
11.6 |
|
8.1 |
|
1.2 |
|
36.3 |
|
October 31, 2021 |
|
7.7 |
|
2.8 |
|
5.7 |
|
26.7 |
|
11.3 |
|
9.6 |
|
0.8 |
|
35.4 |
|
April 30, 2021 |
|
7.3 |
|
5.7 |
|
3.9 |
|
29.0 |
|
9.4 |
|
9.6 |
|
0.3 |
|
34.8 |
|
| (1) | For financial reporting purposes, credit quality ratings shown
above reflect the lowest rating assigned by either S&P, Moody's or Fitch if ratings differ. These rating agencies are independent,
nationally recognized statistical rating organization and are widely used. Investment grade ratings are credit ratings of BBB/Baa or
higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating
agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. abrdn Asia
Limited (formerly, Aberdeen Standard Investments (Asia) Limited) evaluated the credit quality of unrated investments based upon, but
not limited to, credit ratings for similar investments. |
Geographic Composition
The table below shows the geographical composition (with U.S. Dollar-denominated
bonds issued by foreign issuers allocated into country of issuance) of the Fund's total investments as of April 30, 2022, compared to
October 31, 2021 and April 30, 2021:
Date |
|
Asia
(including NZ)
% |
|
Australia
% |
|
Latin
America
% |
|
Europe
% |
|
United
States
% |
|
Africa
% |
|
April 30, 2022 |
|
74.8 |
|
11.0 |
|
5.2 |
|
4.5 |
|
2.5 |
|
2.0 |
|
October 31, 2021 |
|
75.0 |
|
11.6 |
|
4.5 |
|
5.0 |
|
2.2 |
|
1.7 |
|
April 30, 2021 |
|
72.0 |
|
13.2 |
|
4.8 |
|
4.4 |
|
3.1 |
|
2.5 |
|
Currency Composition
The table below shows the currency composition, including hedges, of
the Fund's total investments as of April 30, 2022, compared to October 31, 2021 and April 30, 2021:
Date |
|
Asian
Currencies
(including NZ Dollar)
% |
|
US
Dollar*
% |
|
Australian
Dollar
% |
|
Latin
American
Currencies
% |
|
European
Currencies
% |
|
April
30, 2022 |
|
47.7 |
|
37.8 |
|
9.0 |
|
5.2 |
|
0.3 |
|
October
31, 2021 |
|
46.1 |
|
38.8 |
|
10.1 |
|
4.4 |
|
0.6 |
|
April
30, 2021 |
|
44.8 |
|
44.2 |
|
7.3 |
|
3.7 |
|
0.0 |
|
| * | Includes U.S. Dollar-denominated bonds issued by foreign issuers:
50.7% of the Fund's total investments on April 30, 2022, 51.1% of the Fund's total investments on October 31, 2021, and 51.4% of the
Fund's total investments on April 30, 2021. |
8 | Aberdeen Asia-Pacific
Income Fund, Inc. |
Portfolio
Composition (unaudited)
(concluded)
Maturity Composition
As of April 30, 2022, the average maturity of the Fund's total investments
was 11.9 years, compared with 11.5 years at October 31, 2021 and compared with 9.6 years at April 31, 2021. The following table shows
the maturity composition of the Fund's investments as of April 30, 2022, compared to October 31, 2021 and April 30, 2021:
Date |
|
Under 3 Years
% |
|
3 to 5 Years
% |
|
5 to 10 Years
% |
|
10 Years & Over
% |
|
April 30, 2022 |
|
|
28.0 |
|
|
15.9 |
|
|
36.3 |
|
|
19.8 |
|
October 31, 2021 |
|
|
27.6 |
|
|
18.7 |
|
|
34.3 |
|
|
19.4 |
|
April 30, 2021 |
|
|
27.1 |
|
|
22.4 |
|
|
33.2 |
|
|
17.3 |
|
Modified Duration*
As of April 30, 2022, the modified duration of the Fund was 4.4 years.
This calculation excludes the interest rate swaps that are used to manage the leverage of the Fund. Excluding swaps will increase portfolio
duration.
| * | Modified duration is a measure of the sensitivity of the price
of a bond to the fluctuations in interest rates. |
Aberdeen Asia-Pacific Income Fund, Inc. | 9 |
Summary
of Key Rates (unaudited)
The following table summarizes the movements of key interest rates and
currencies from April 30, 2022 compared to October 31, 2021 and April 30, 2021.
|
|
|
Apr-22 |
|
Oct-21 |
|
Apr-21 |
|
Australia |
90
day Bank Bills |
|
0.70 |
% |
|
0.08 |
% |
|
0.04 |
% |
|
|
10
yr bond |
|
1.83 |
% |
|
0.58 |
% |
|
0.08 |
% |
|
|
currency local per 1USD |
|
$1.41 |
|
|
$1.33 |
|
|
$1.29 |
|
|
South Korea |
90 day commercial paper |
|
1.72 |
% |
|
1.12 |
% |
|
0.73 |
% |
|
|
10
yr bond |
|
3.24 |
% |
|
2.56 |
% |
|
2.13 |
% |
|
|
currency local per 1USD |
|
₩1256.00 |
|
|
₩1168.55 |
|
|
₩1112.35 |
|
|
Thailand |
3 months deposit rate |
|
0.38 |
% |
|
0.38 |
% |
|
0.38 |
% |
|
|
10
yr bond |
|
2.71 |
% |
|
1.97 |
% |
|
1.77 |
% |
|
|
currency local per 1USD |
|
฿34.25 |
|
|
฿33.18 |
|
|
฿31.14 |
|
|
Philippines |
90
day T-Bills |
|
1.25 |
% |
|
1.21 |
% |
|
4.64 |
% |
|
|
10
yr bond |
|
6.00 |
% |
|
4.90 |
% |
|
7.67 |
% |
|
|
currency local per 1USD |
|
₱52.21 |
|
|
₱50.41 |
|
|
₱48.15 |
|
|
Malaysia |
3-month
T-Bills |
|
1.80 |
% |
|
1.78 |
% |
|
1.77 |
% |
|
|
10
yr bond |
|
4.38 |
% |
|
3.58 |
% |
|
3.11 |
% |
|
|
currency local per 1USD |
|
RM4.35 |
|
|
RM4.14 |
|
|
RM4.10 |
|
|
Singapore |
3-month
T-Bills |
|
1.29 |
% |
|
0.40 |
% |
|
0.35 |
% |
|
|
10
yr bond |
|
2.53 |
% |
|
1.84 |
% |
|
1.59 |
% |
|
|
currency local per 1USD |
|
S$
1.38 |
|
|
S$
1.35 |
|
|
S$
1.33 |
|
|
India |
3-month
T-Bills |
|
4.04 |
% |
|
3.52 |
% |
|
6.11 |
% |
|
|
10
yr bond |
|
7.14 |
% |
|
6.39 |
% |
|
6.03 |
% |
|
|
currency local per 1USD |
|
₹76.44 |
|
|
₹74.88 |
|
|
₹74.07 |
|
|
Indonesia |
3 months deposit rate |
|
3.26 |
% |
|
3.50 |
% |
|
4.09 |
% |
|
|
10
yr bond |
|
6.97 |
% |
|
6.03 |
% |
|
6.44 |
% |
|
|
currency local per 1USD |
|
Rp14497.00 |
|
|
Rp14167.50 |
|
|
Rp14445.00 |
|
|
China Onshore |
3-month
Bill Yield |
|
1.84 |
% |
|
2.24 |
% |
|
2.63 |
% |
|
|
10
yr bond |
|
2.84 |
% |
|
2.97 |
% |
|
3.15 |
% |
|
|
currency local per 1USD |
|
¥
6.59 |
|
|
¥6.40 |
|
|
¥6.47 |
|
|
Sri Lanka |
3-month Generic Govt Yield |
|
20.33 |
% |
|
7.82 |
% |
|
5.11 |
% |
|
|
10
yr bond |
|
17.26 |
% |
|
11.29 |
% |
|
8.05 |
% |
|
|
currency local per 1USD |
|
Rs351.32 |
|
|
Rs202.00 |
|
|
Rs197.50 |
|
|
USD Denominated Bonds |
Indonesia |
|
4.01 |
% |
|
2.20 |
% |
|
2.29 |
% |
|
|
Sri Lanka |
|
24.45 |
% |
|
16.15 |
% |
|
14.78 |
% |
|
10 | Aberdeen Asia-Pacific Income Fund, Inc. |
Statement
of Investments (unaudited)
April 30, 2022
Principal
Amount
(000) or Shares |
|
Description |
|
Value
(US$) |
|
CORPORATE
BONDS—81.5% |
|
AUSTRALIA—6.8% |
|
USD |
6,000 |
|
|
Australia
& New Zealand Banking Group Ltd., (fixed rate to 06/15/2026, variable rate thereafter), 6.75%, 06/15/2026(a)(b) |
|
$ |
6,285,000 |
|
AUD |
1,000 |
|
|
Emeco
Pty. Ltd., 6.25%, 07/10/2023(c) |
|
|
694,709 |
|
USD |
6,845 |
|
|
Macquarie
Bank Ltd., 3.62%, 06/03/2030(a) |
|
|
6,142,576 |
|
USD |
6,850 |
|
|
Mineral
Resources Ltd., 8.00%, 11/01/2027 |
|
|
6,824,313 |
|
AUD |
17,000 |
|
|
New
South Wales Treasury Corp., 2.00%, 03/20/2031 |
|
|
10,658,435 |
|
AUD |
2,270 |
|
|
Qantas
Airways Ltd., 5.25%, 06/09/2030(a)(c) |
|
|
1,519,074 |
|
USD |
4,000 |
|
|
QBE
Insurance Group Ltd., (fixed rate to 05/12/2025, variable rate thereafter), 5.88%, 05/12/2025(a)(b) |
|
|
4,020,000 |
|
USD |
9,100 |
|
|
Santos
Finance Ltd., 4.13%, 06/14/2027(a)(c) |
|
|
8,788,219 |
|
AUD |
410 |
|
|
Transurban
Queensland Finance Pty Ltd., 3.25%, 05/07/2031(c) |
|
|
242,720 |
|
AUD |
5,000 |
|
|
Treasury
Corp. of Victoria, 2.25%, 11/20/2040 |
|
|
2,738,907 |
|
AUD |
23,600 |
|
|
Wesfarmers
Ltd., 2.55%, 03/23/2031(a)(c) |
|
|
13,741,269 |
|
SGD |
250 |
|
|
Westpac
Banking Corp., 4.11%, 04/15/2025 |
|
|
185,654 |
|
|
|
|
61,840,876 |
|
BAHRAIN—0.3% |
|
|
|
USD |
2,500 |
|
|
Oil
& Gas Holding Co. BSCC, 7.50%, 10/25/2027(a) |
|
|
2,628,605 |
|
|
|
|
2,628,605 |
|
CHINA—16.9% |
|
|
|
USD |
3,000 |
|
|
Bank
of China Ltd., 5.00%, 11/13/2024(a) |
|
|
3,096,863 |
|
USD |
200 |
|
|
Central
China Real Estate Ltd., 7.25%, 05/30/2022(a)(c) |
|
|
91,500 |
|
USD |
4,610 |
|
|
Central
China Real Estate Ltd., 7.65%, 08/27/2022(a)(c) |
|
|
1,892,405 |
|
USD |
800 |
|
|
Central
China Real Estate Ltd., 7.90%, 05/30/2022(a)(c) |
|
|
304,000 |
|
CNY |
30,000 |
|
|
Central
Huijin Investment Ltd., 3.02%, 03/13/2025 |
|
|
4,566,079 |
|
CNY |
10,000 |
|
|
Central
Huijin Investment Ltd., 3.67%, 01/16/2024 |
|
|
1,539,551 |
|
CNY |
50,000 |
|
|
China
Construction Bank Corp., 3.45%, 08/10/2026(c) |
|
|
7,601,715 |
|
USD |
3,800 |
|
|
China
Construction Bank Corp., (fixed rate to 02/27/2024, variable rate thereafter), 4.25%, 02/27/2024(a)(c) |
|
|
3,833,492 |
|
USD |
4,000 |
|
|
China
Construction Bank Corp., (fixed rate to 06/24/2025, variable rate thereafter), 2.45%, 06/24/2025(a)(c) |
|
|
3,816,940 |
|
CNY |
120,000 |
|
|
China
Development Bank, 3.34%, 07/14/2025 |
|
|
18,568,969 |
|
|
12,500 |
|
|
China
Evergrande Group, 8.75%, 05/30/2022(a)(c) |
|
|
1,375,000 |
|
USD |
1,000 |
|
|
China
Oil & Gas Group Ltd., 5.50%, 05/30/2022(a)(c) |
|
|
993,800 |
|
CNY |
40,000 |
|
|
China
Petroleum & Chemical Corp., 2.70%, 04/01/2023 |
|
|
6,079,715 |
|
USD |
3,405 |
|
|
CMHI
Finance BVI Co. Ltd. (fixed rate to 10/09/2025 variable rate thereafter), 3.88%, 10/09/2025(a)(b) |
|
|
3,406,022 |
|
USD |
3,600 |
|
|
CNAC
HK Finbridge Co. Ltd., 3.88%, 06/19/2029(a) |
|
|
3,392,990 |
|
USD |
3,320 |
|
|
CNAC
HK Finbridge Co. Ltd., 5.13%, 03/14/2028(a) |
|
|
3,372,799 |
|
USD |
2,522 |
|
|
Country
Garden Holdings Co. Ltd., 3.30%, 10/12/2030(a)(c) |
|
|
1,513,200 |
|
USD |
4,161 |
|
|
Country
Garden Holdings Co. Ltd., 7.25%, 04/08/2023(a)(c) |
|
|
3,058,335 |
|
MYR |
10,000 |
|
|
Country
Garden Real Estate Sdn Bhd, 6.40%, 05/06/2022 |
|
|
2,297,692 |
|
USD |
4,526 |
|
|
ENN
Clean Energy International Investment Ltd., 3.38%, 05/12/2024(a)(c) |
|
|
4,153,042 |
|
USD |
3,600 |
|
|
Gansu
Provincial Highway Aviation Tourism Investment Group Co. Ltd., 3.25%, 11/03/2023(a) |
|
|
3,529,907 |
|
USD |
3,000 |
|
|
Geely
Automobile Holdings Ltd., 3.63%, 01/25/2023(a) |
|
|
2,991,600 |
|
USD |
3,962 |
|
|
GLP
China Holdings Ltd., 2.95%, 03/29/2026(a) |
|
|
3,617,200 |
|
USD |
5,400 |
|
|
HBIS
Group Hong Kong Co. Ltd., 3.75%, 12/18/2022(a) |
|
|
5,416,200 |
|
USD |
2,400 |
|
|
Huarong
Finance II Co. Ltd., 5.00%, 11/19/2025(a) |
|
|
2,334,000 |
|
USD |
6,700 |
|
|
Huarong
Finance II Co. Ltd., 5.50%, 01/16/2025(a) |
|
|
6,566,000 |
|
CNY |
30,000 |
|
|
Industrial
& Commercial Bank of China Ltd., 3.28%, 01/20/2027(c) |
|
|
4,512,501 |
|
Aberdeen Asia-Pacific Income Fund, Inc. | 11 |
Statement
of Investments (unaudited) (continued)
April 30, 2022
Principal
Amount
(000) or Shares |
|
Description |
|
Value
(US$) |
|
CORPORATE BONDS (continued) |
|
CHINA (continued) |
|
|
CNY |
50,000 |
|
|
Industrial
& Commercial Bank of China Ltd. Series A, 4.15%, 11/16/2025(c) |
|
$ |
7,815,164 |
|
USD |
700 |
|
|
Kaisa
Group Holdings Ltd., 9.75%, 09/28/2022(a)(c) |
|
|
140,875 |
|
USD |
4,603 |
|
|
Kaisa
Group Holdings Ltd., 10.88%, 05/30/2022(a)(c) |
|
|
944,766 |
|
USD |
3,941 |
|
|
Kaisa
Group Holdings Ltd., 11.95%, 05/30/2022(a)(c)(d) |
|
|
818,743 |
|
USD |
3,670 |
|
|
King
Talent Management Ltd., (Fixed rate to 12/04/2022, variable rate thereafter), 5.60%, 12/04/2022(a)(b) |
|
|
3,449,800 |
|
USD |
7,800 |
|
|
Logan
Group Co. Ltd., 5.25%, 10/19/2023(a)(c) |
|
|
2,203,500 |
|
|
7,800 |
|
|
Logan
Group Co. Ltd., 6.50%, 05/30/2022(a)(c) |
|
|
2,301,000 |
|
USD |
2,083 |
|
|
Longfor
Group Holdings Ltd., 3.95%, 09/16/2029(a) |
|
|
1,834,384 |
|
USD |
4,083 |
|
|
MCC
Holding Hong Kong Corp. Ltd., (fixed rate to 04/20/2024, variable rate thereafter), 2.95%, 04/20/2024(a)(b) |
|
|
4,003,381 |
|
USD |
1,800 |
|
|
New
Metro Global Ltd., 4.80%, 12/15/2022(a)(c) |
|
|
1,183,950 |
|
USD |
2,040 |
|
|
Shandong
Iron And Steel Xinheng International Co. Ltd., 4.80%, 07/28/2024(a) |
|
|
2,019,600 |
|
USD |
3,754 |
|
|
Shandong
Iron And Steel Xinheng International Co., Ltd., 6.50%, 11/05/2023(a) |
|
|
3,829,080 |
|
USD |
2,800 |
|
|
Shimao
Group Holdings Ltd., 5.60%, 07/15/2023(a)(c) |
|
|
672,000 |
|
USD |
4,400 |
|
|
Shimao
Group Holdings Ltd., 6.13%, 05/17/2022(a)(c) |
|
|
1,146,200 |
|
USD |
2,807 |
|
|
SPIC
Luxembourg Latin America Renewable Energy Investment Co. Sarl, 4.65%, 10/30/2023(a) |
|
|
2,853,372 |
|
USD |
690 |
|
|
Sunac
China Holdings Ltd., 5.95%, 01/26/2023(a)(c) |
|
|
159,735 |
|
USD |
5,714 |
|
|
Sunac
China Holdings Ltd., 6.80%, 10/20/2023(a)(c) |
|
|
1,311,363 |
|
USD |
1,786 |
|
|
Sunac
China Holdings Ltd., 7.00%, 07/09/2023(a)(c) |
|
|
392,920 |
|
USD |
7,100 |
|
|
Times
China Holdings Ltd., 6.20%, 09/22/2023(a)(c) |
|
|
3,017,500 |
|
USD |
3,180 |
|
|
Xiaomi
Best Time International Ltd., 2.88%, 04/14/2031(a)(c) |
|
|
2,606,728 |
|
USD |
7,000 |
|
|
Yuzhou
Group Holdings Co. Ltd., 8.30%, 11/27/2022(a)(c) |
|
|
876,750 |
|
USD |
10,457 |
|
|
Zhenro
Properties Group Ltd., 6.63%, 01/07/2024(a)(c) |
|
|
888,845 |
|
USD |
1,000 |
|
|
Zhenro
Properties Group Ltd., 7.10%, 09/10/2023(a)(c)(d) |
|
|
90,000 |
|
USD |
4,000 |
|
|
Zhenro
Properties Group Ltd., 7.88%, 01/14/2023(a)(c)(d) |
|
|
360,000 |
|
USD |
4,156 |
|
|
Zhongsheng
Group Holdings Ltd., 3.00%, 12/13/2025(a)(c) |
|
|
3,911,414 |
|
|
|
|
152,752,587 |
|
GERMANY—0.8% |
|
|
AUD |
10,000 |
|
|
Landwirtschaftliche
Rentenbank, 4.75%, 04/08/2024(e) |
|
|
7,304,751 |
|
HONG KONG—0.9% |
|
|
USD |
7,000 |
|
|
CAS
Capital No 1 Ltd. (fixed rate to 07/12/2026, variable rate thereafter), 4.00%, 07/12/2026(a)(b) |
|
|
6,545,000 |
|
USD |
980 |
|
|
Hutchison
Whampoa International 03/33 Ltd., 7.45%, 11/24/2033(a) |
|
|
1,270,854 |
|
|
|
|
7,815,854 |
|
INDIA—19.4% |
|
|
USD |
7,302 |
|
|
Adani
Electricity Mumbai Ltd., 3.95%, 02/12/2030(a) |
|
|
6,263,162 |
|
USD |
6,910
|
|
|
Adani
Green Energy UP Ltd. / Prayatna Developers Pvt Ltd. / Parampujya Solar Energy Pvt Ltd., 6.25%, 12/10/2024(a) |
|
|
6,981,864 |
|
USD |
3,050 |
|
|
Adani
Transmission Ltd., 4.00%, 08/03/2026(a) |
|
|
2,920,411 |
|
USD |
3,629 |
|
|
Adani
Transmission Ltd., 4.25%, 05/21/2036(a)(f) |
|
|
3,209,289 |
|
INR |
200,000 |
|
|
Axis
Bank Ltd., 7.60%, 10/20/2023 |
|
|
2,675,773 |
|
INR |
500,000 |
|
|
Axis
Bank Ltd., 8.85%, 12/05/2024 |
|
|
6,890,159 |
|
USD |
10,900 |
|
|
Axis
Bank Ltd. (fixed rate to 09/8/2026, variable rate thereafter), 4.10%, 09/08/2026(a)(b) |
|
|
9,987,489 |
|
USD |
7,030 |
|
|
Azure
Power Solar Energy Pvt Ltd., 5.65%, 09/24/2022(a)(c) |
|
|
7,031,828 |
|
USD |
3,300 |
|
|
Bharti
Airtel International Netherlands BV, 5.35%, 05/20/2024(a) |
|
|
3,377,550 |
|
USD |
800 |
|
|
CA
Magnum Holdings, 5.38%, 10/31/2023(a)(c) |
|
|
764,000 |
|
USD |
1,200 |
|
|
GMR
Hyderabad International Airport Ltd., 4.75%, 02/02/2026(a) |
|
|
1,149,600 |
|
USD |
5,173 |
|
|
GMR
Hyderabad International Airport Ltd., 5.38%, 04/10/2024(a) |
|
|
5,196,279 |
|
12 | Aberdeen Asia-Pacific Income Fund, Inc. |
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount (000) or Shares | |
Description | |
Value
(US$) | |
CORPORATE
BONDS (continued) |
INDIA
(continued) |
| | |
USD |
8,206 | | |
Greenko
Wind Projects Mauritius Ltd., 5.50%, 04/06/2024(a)(c) | |
$ | 8,004,953 | |
INR |
750,000 | | |
HDFC
Bank Ltd., 7.95%, 09/21/2026 | |
| 10,162,688 | |
USD |
7,304 | | |
HDFC
Bank Ltd., (Fixed rate to 08/25/2026, variable rate thereafter), 3.70%, 08/25/2026(a)(b) | |
| 6,664,900 | |
INR |
100,000 | | |
Housing
Development Finance Corp. Ltd., 7.90%, 08/24/2026 | |
| 1,351,608 | |
INR |
100,000 | | |
ICICI
Bank Ltd., 7.60%, 10/07/2023 | |
| 1,338,046 | |
INR |
250,000 | | |
ICICI
Bank Ltd., 9.15%, 08/06/2024 | |
| 3,483,991 | |
USD |
5,732 | | |
IIFL
Finance Ltd., 5.88%, 04/20/2023(a) | |
| 5,636,849 | |
USD |
7,072 | | |
India
Green Power Holdings, 4.00%, 02/22/2024(a) | |
| 6,122,938 | |
USD |
4,000 | | |
Indiabulls
Housing Finance Ltd., 6.38%, 05/28/2022(a) | |
| 3,980,000 | |
INR |
100,000 | | |
Indiabulls
Housing Finance Ltd., 9.00%, 04/29/2026 | |
| 1,235,617 | |
INR |
50,000 | | |
Indian
Railway Finance Corp. Ltd., 8.45%, 12/04/2028 | |
| 693,035 | |
USD |
3,420 | | |
JSW
Infrastructure Ltd., 4.95%, 10/21/2028(a)(c) | |
| 3,072,432 | |
INR |
150,000 | | |
National
Highways Authority of India, 7.70%, 09/13/2029 | |
| 1,988,850 | |
INR |
50,000 | | |
NTPC
Ltd., 8.05%, 05/05/2026 | |
| 688,196 | |
INR |
250,000 | | |
NTPC
Ltd., 8.10%, 05/27/2026 | |
| 3,448,576 | |
USD |
3,280 | | |
Periama
Holdings LLC, 5.95%, 04/19/2026(a) | |
| 3,217,024 | |
USD |
7,112 | | |
Power
Finance Corp. Ltd., 6.15%, 12/06/2028(a) | |
| 7,515,550 | |
INR |
250,000 | | |
Power
Finance Corp. Ltd., 8.39%, 04/19/2025 | |
| 3,426,284 | |
INR |
400,000 | | |
Power
Finance Corp. Ltd., 8.65%, 12/28/2024 | |
| 5,529,228 | |
INR |
150,000 | | |
Power
Grid Corp. of India Ltd., 8.13%, 04/25/2027 | |
| 2,105,226 | |
INR |
500,000 | | |
Power
Grid Corp. of India Ltd., 8.13%, 04/25/2028 | |
| 7,077,169 | |
USD |
3,689 | | |
REC
Ltd., 4.75%, 05/19/2023(a) | |
| 3,717,211 | |
INR |
150,000 | | |
REC
Ltd., 8.10%, 06/25/2024 | |
| 2,032,704 | |
INR |
150,000 | | |
REC
Ltd., 9.34%, 08/25/2024 | |
| 2,087,779 | |
INR |
70,000 | | |
REC
Ltd., 9.35%, 06/15/2022 | |
| 921,385 | |
USD |
6,200 | | |
Reliance
Industries Ltd., 4.13%, 01/28/2025(a) | |
| 6,221,700 | |
USD |
8,000 | | |
Shriram
Transport Finance Co. Ltd., 4.40%, 03/13/2024(a) | |
| 7,624,000 | |
INR |
300,000 | | |
State
of Maharashtra India, 7.20%, 08/09/2027 | |
| 3,936,096 | |
USD |
3,327 | | |
UPL
Corp. Ltd., 4.63%, 06/16/2030(a) | |
| 3,034,086 | |
USD |
3,500 | | |
Vedanta
Resources Ltd., 6.38%, 07/30/2022(a) | |
| 3,493,035 | |
|
| | |
| |
| 176,258,560 | |
INDONESIA—4.9% | | |
IDR |
20,000,000 | | |
Adira
Dinamika Multi Finance Tbk PT, 7.80%, 10/04/2022 | |
| 1,404,842 | |
USD |
2,198 | | |
Bank
Mandiri Persero Tbk PT, 4.75%, 05/13/2025(a) | |
| 2,263,844 | |
IDR |
10,000,000 | | |
Bank
Rakyat Indonesia Persero Tbk PT, 8.25%, 08/24/2024 | |
| 719,459 | |
USD |
7,300 | | |
Bank
Tabungan Negara Persero Tbk PT, 4.20%, 01/23/2025(a) | |
| 7,091,950 | |
USD |
5,326 | | |
FPC
Treasury Ltd., 4.50%, 04/16/2023(a) | |
| 5,355,293 | |
USD |
3,766 | | |
Hutama
Karya Persero PT, 3.75%, 02/11/2030(a)(c)(e) | |
| 3,577,264 | |
IDR |
20,000,000 | | |
Lembaga
Pembiayaan Ekspor Indonesia, 8.45%, 07/09/2022 | |
| 1,393,116 | |
USD |
5,339 | | |
LLPL
Capital Pte Ltd., 6.88%, 02/04/2039(a)(f) | |
| 5,189,613 | |
USD |
4,565 | | |
Medco
Oak Tree Pte Ltd., 7.38%, 05/14/2023(a)(c) | |
| 4,521,632 | |
USD |
1,959 | | |
Perusahaan
Penerbit SBSN Indonesia III, 4.33%, 05/28/2025(a) | |
| 2,003,078 | |
USD |
3,129 | | |
Perusahaan
Perseroan Persero PT Perusahaan Listrik Negara, 6.15%, 05/21/2048(a) | |
| 3,143,925 | |
IDR |
12,000,000 | | |
Perusahaan
Perseroan Persero PT Perusahaan Listrik Negara, 8.25%, 07/05/2023 | |
| 858,971 | |
USD |
7,181 | | |
Tower
Bersama Infrastructure Tbk PT, 2.75%, 12/20/2025(a)(c) | |
| 6,801,272 | |
|
| | |
| |
| 44,324,259 | |
JAPAN—0.5% | | |
USD |
4,850 | | |
Nissan
Motor Co. Ltd., 4.81%, 06/17/2030(a)(c) | |
| 4,544,732 | |
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
13 |
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount (000) or Shares | |
Description | |
Value
(US$) | |
CORPORATE
BONDS (continued) |
KAZAKHSTAN—0.6% |
| | |
KZT |
3,265,000 | | |
Development
Bank of Kazakhstan JSC, 10.95%, 05/06/2026(a) | |
$ | 5,155,818 | |
|
| | |
| |
| 5,155,818 | |
KUWAIT—0.8% |
| | |
USD |
6,759 | | |
MEGlobal
Canada ULC, 5.00%, 05/18/2025(a) | |
| 6,881,554 | |
MACAO—0.3% |
| | |
USD |
3,500 | | |
MGM
China Holdings Ltd., 5.88%, 05/15/2022(a)(c) | |
| 3,088,750 | |
MALAYSIA—2.0% |
| | |
MYR |
5,000 | | |
CIMB
Group Holdings Bhd, 4.95%, 03/29/2023(c) | |
| 1,177,152 | |
MYR |
5,000 | | |
DRB-Hicom
Bhd, 5.10%, 12/12/2029 | |
| 1,078,990 | |
MYR |
5,000 | | |
Malayan
Banking Bhd, (fixed rate to 09/25/2024, variable rate thereafter), 4.08%, 09/25/2024(b) | |
| 1,156,495 | |
MYR |
5,000 | | |
Pengerang
LNG Two Sdn Bhd, 2.86%, 10/20/2028 | |
| 1,042,116 | |
MYR |
5,000 | | |
Pengerang
LNG Two Sdn Bhd, 2.92%, 10/19/2029 | |
| 1,023,969 | |
MYR |
10,000 | | |
Petroleum
Sarawak Exploration & Production Sdn Bhd, 4.10%, 03/19/2031 | |
| 2,188,629 | |
USD |
2,600 | | |
Petronas
Capital Ltd., 3.50%, 01/21/2030(a)(c) | |
| 2,501,507 | |
MYR |
5,000 | | |
Press
Metal Aluminium Holdings Bhd, 4.00%, 08/15/2025 | |
| 1,138,211 | |
USD |
7,000 | | |
TNB
Global Ventures Capital Bhd, 3.24%, 10/19/2026(a) | |
| 6,788,740 | |
|
| | |
| |
| 18,095,809 | |
MEXICO—0.7% |
| | |
MXN |
145,000 | | |
Petroleos
Mexicanos, 7.19%, 09/12/2024(a) | |
| 6,601,083 | |
NORWAY—0.6% |
| | |
AUD |
7,000 | | |
Kommunalbanken
AS, 4.50%, 04/17/2023(a) | |
| 5,051,578 | |
|
| | |
| |
| 5,051,578 | |
OMAN—0.7% |
| | |
USD |
6,950 | | |
OQ
SAOC, 5.13%, 05/06/2028(a) | |
| 6,750,187 | |
PAKISTAN—0.7% |
| | |
USD |
6,245 | | |
Pakistan
Global Sukuk Programme Co.Ltd. (The), 7.95%, 01/31/2029(a) | |
| 5,932,750 | |
|
| | |
| |
| 5,932,750 | |
PHILIPPINES—5.3% |
| | |
USD |
6,800 | | |
AC
Energy Finance International Ltd., 5.10%, 11/25/2025(a)(b) | |
| 6,621,500 | |
USD |
4,097 | | |
Globe
Telecom, Inc., (Fixed rate to 08/02/2026, variable rate thereafter), 4.20%, 08/02/2026(a)(b) | |
| 3,935,279 | |
USD |
7,000 | | |
ICTSI
Treasury BV, 5.88%, 09/17/2025(a) | |
| 7,433,491 | |
USD |
11,000 | | |
Manila
Water Co., Inc., 4.38%, 07/30/2025(a)(c) | |
| 10,318,000 | |
USD |
13,086 | | |
Megaworld
Corp., 4.25%, 04/17/2023(a) | |
| 13,092,543 | |
USD |
7,000 | | |
Royal
Capital BV, (fixed rate to 05/05/2024, variable rate thereafter), 4.88%, 05/05/2024(a)(b) | |
| 6,965,000 | |
|
| | |
| |
| 48,365,813 | |
SAUDI
ARABIA—1.1% |
| | |
USD |
7,000 | | |
Dar
Al-Arkan Sukuk Co. Ltd., 6.88%, 03/21/2023(a) | |
| 7,122,500 | |
USD |
2,976 | | |
Saudi
Electricity Global Sukuk Co. 3, 5.50%, 04/08/2044(a) | |
| 3,118,277 | |
|
| | |
| |
| 10,240,777 | |
SINGAPORE—2.9% |
| | |
USD |
4,300 | | |
DBS
Group Holdings Ltd., (fixed rate to 02/27/2025, variable rate thereafter), 3.30%, 02/27/2025(a)(b) | |
| 4,147,436 | |
USD |
2,400 | | |
DBS
Group Holdings Ltd., (fixed rate to 12/11/2023, variable rate thereafter), 4.52%, 12/11/2023(a)(c) | |
| 2,432,953 | |
14 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount (000) or Shares | |
Description | |
Value
(US$) | |
CORPORATE
BONDS (continued) |
SINGAPORE
(continued) |
| | |
USD |
4,538 | | |
GLP
Pte Ltd. (fixed rate to 05/17/2026, variable rate thereafter), 4.50%, 05/17/2026(b) | |
$ | 4,038,820 | |
USD |
3,800 | | |
Parkway
Pantai Ltd., (fixed rate to 07/27/2022, variable rate thereafter), 4.25%, 07/27/2022(a)(b) | |
| 3,739,200 | |
USD |
3,682 | | |
Singapore
Airlines Ltd., 3.00%, 06/20/2026(a)(c) | |
| 3,502,057 | |
USD |
1,687 | | |
Singapore
Airlines Ltd., 3.38%, 11/19/2028(a)(c) | |
| 1,556,527 | |
USD |
7,000 | | |
Vena
Energy Capital Pte Ltd., 3.13%, 02/26/2025(a) | |
| 6,736,822 | |
|
| | |
| |
| 26,153,815 | |
SOUTH
KOREA—3.0% |
| | |
USD |
11,400 | | |
Busan
Bank Co. Ltd., 3.63%, 07/25/2026(a) | |
| 11,065,826 | |
USD |
3,300 | | |
Hanwha
Total Petrochemical Co. Ltd., 3.88%, 01/23/2024(a) | |
| 3,314,554 | |
USD |
2,000 | | |
Kookmin
Bank, 2.50%, 11/04/2030(a) | |
| 1,712,162 | |
USD |
5,900 | | |
Shinhan
Bank Co. Ltd., 4.50%, 03/26/2028(a) | |
| 5,928,677 | |
USD |
2,071 | | |
SK
Hynix, Inc., 2.38%, 01/19/2031(a) | |
| 1,720,898 | |
USD |
3,650 | | |
Tongyang
Life Insurance Co. Ltd. (fixed rate to 09/22/2025 variable rate thereafter), 5.25%, 09/22/2025(a)(b) | |
| 3,631,750 | |
|
| | |
| |
| 27,373,867 | |
TAIWAN—0.2% |
| | |
USD |
2,191 | | |
TSMC
Arizona Corp., 2.50%, 07/25/2031(c) | |
| 1,903,343 | |
|
| | |
| |
| 1,903,343 | |
THAILAND—3.4% |
| | |
USD |
1,200 | | |
Bangkok
Bank PCL, 9.03%, 03/15/2029(a) | |
| 1,467,139 | |
USD |
6,900 | | |
Bangkok
Bank PCL, (fixed rate to 09/25/2029, variable rate thereafter), 3.73%, 09/25/2029(a)(c) | |
| 6,285,900 | |
USD |
4,209 | | |
GC
Treasury Center Co. Ltd., 4.40%, 09/30/2031(a)(c) | |
| 4,005,544 | |
USD |
7,000 | | |
Krung
Thai Bank PCL, (fixed rate to 03/25/2026, variable rate thereafter), 4.40%, 03/25/2026(a)(b) | |
| 6,475,000 | |
USD |
5,800 | | |
Minor
International PCL, (fixed rate to 06/29/2023, variable rate thereafter), 3.10%, 06/29/2023(a)(b) | |
| 5,735,374 | |
USD |
3,342 | | |
PTTEP
Treasury Center Co. Ltd., 3.90%, 12/06/2059(a) | |
| 2,837,086 | |
USD |
3,800 | | |
TMB
Bank PCL, (fixed rate to 12/02/2024, variable rate thereafter), 4.90%, 12/02/2024(a)(b) | |
| 3,674,648 | |
|
| | |
| |
| 30,480,691 | |
UNITED
ARAB EMIRATES—3.2% |
| | |
USD |
2,700 | | |
DP
World PLC, 6.85%, 07/02/2037(a) | |
| 3,064,500 | |
USD |
7,100 | | |
Esic
Sukuk Ltd., 3.94%, 07/30/2024(a) | |
| 6,985,406 | |
USD |
7,237 | | |
Galaxy
Pipeline Assets Bidco Ltd., 2.63%, 03/31/2036(a)(f) | |
| 6,050,473 | |
USD |
6,500 | | |
MAF
Global Securities Ltd., (fixed rate to 03/20/2026, variable rate thereafter), 6.38%, 03/20/2026(a)(b) | |
| 6,565,000 | |
USD |
6,400 | | |
Tabreed
Sukuk Spc Ltd., 5.50%, 10/31/2025(a) | |
| 6,721,485 | |
|
| | |
| |
| 29,386,864 | |
UNITED
KINGDOM—4.4% |
| | |
USD |
6,760 | | |
HSBC
Holdings PLC, (fixed rate to 03/23/2023, variable rate thereafter), 6.25%, 03/23/2023(b) | |
| 6,736,340 | |
USD |
15,500 | | |
Hutchison
Whampoa Finance CI Ltd., 7.50%, 08/01/2027(a) | |
| 18,315,962 | |
USD |
6,999 | | |
Standard
Chartered PLC, 3.95%, 01/11/2023(a) | |
| 7,029,688 | |
USD |
5,000 | | |
Standard
Chartered PLC, 4.05%, 04/12/2026(a) | |
| 4,934,700 | |
USD |
2,759 | | |
Standard
Chartered PLC, (fixed rate to 04/02/2023, variable rate thereafter), 7.75%, 04/02/2023(a)(b) | |
| 2,828,720 | |
|
| | |
| |
| 39,845,410 | |
UNITED
STATES—0.7% |
| | |
USD |
5,600 | | |
Hyundai
Capital America, 6.38%, 01/08/2030(a)(c) | |
| 6,136,245 | |
|
| | |
| |
| 6,136,245 | |
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
15 |
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount
(000) or Shares |
|
Description |
|
Value
(US$) |
CORPORATE BONDS (continued) |
VIETNAM—0.4% |
|
|
USD |
4,310 |
|
|
Mong Duong Finance Holdings BV, 5.13%, 05/07/2023(a) |
|
$ |
3,846,675 |
|
|
|
|
3,846,675 |
|
|
|
|
|
Total Corporate Bonds—81.5% (cost $824,392,153) |
|
|
738,761,253 |
|
GOVERNMENT BONDS—63.5% |
ANGOLA—1.3% |
|
|
USD |
11,000 |
|
|
Angolan Government International Bond, 9.50%, 11/12/2025(a) |
|
|
11,685,080 |
|
AUSTRALIA—8.8% |
|
|
AUD |
2,300 |
|
|
Australia Government Bond, 2.75%, 11/21/2029(a) |
|
|
1,592,502 |
|
AUD |
54,000 |
|
|
Australia Government Bond, 3.25%, 06/21/2039(a) |
|
|
37,604,429 |
|
AUD |
13,500 |
|
|
New South Wales Treasury Corp., 3.00%, 02/20/2030(a) |
|
|
9,276,000 |
|
AUD |
7,500 |
|
|
New South Wales Treasury Corp., 4.00%, 05/20/2026(a) |
|
|
5,479,121 |
|
AUD |
300 |
|
|
Queensland Treasury Corp., 3.50%, 08/21/2030(a) |
|
|
212,971 |
|
AUD |
22,000 |
|
|
Queensland Treasury Corp., 4.25%, 07/21/2023(a) |
|
|
15,925,520 |
|
AUD |
13,000 |
|
|
Treasury Corp. of Victoria, 6.00%, 10/17/2022 |
|
|
9,396,868 |
|
|
|
|
79,487,411 |
|
BRAZIL—2.7% |
|
|
BRL |
103,000 |
|
|
Brazil Notas do Tesouro Nacional, 10.00%, 01/01/2029 |
|
|
18,873,118 |
|
BRL |
31,000 |
|
|
Brazil Notas do Tesouro Nacional Series F, 10.00%, 01/01/2027 |
|
|
5,827,993 |
|
|
|
|
24,701,111 |
|
CHINA—8.6% |
|
|
CNY |
40,000 |
|
|
China Government Bond, 2.36%, 07/02/2023(g) |
|
|
6,084,048 |
|
CNY |
130,000 |
|
|
China Government Bond, 2.68%, 05/21/2030(g) |
|
|
19,422,635 |
|
CNY |
30,000 |
|
|
China Government Bond, 3.02%, 10/22/2025(g) |
|
|
4,629,176 |
|
CNY |
60,000 |
|
|
China Government Bond, 3.02%, 05/27/2031(g) |
|
|
9,195,294 |
|
CNY |
250,000 |
|
|
China Government Bond, 3.27%, 11/19/2030(g) |
|
|
39,148,116 |
|
|
|
|
78,479,269 |
|
INDIA—6.2% |
|
|
INR |
500,000 |
|
|
India Government Bond, 6.19%, 09/16/2034 |
|
|
5,942,447 |
|
INR |
735,000 |
|
|
India Government Bond, 6.79%, 05/15/2027 |
|
|
9,589,110 |
|
INR |
550,000 |
|
|
India Government Bond, 7.17%, 01/08/2028 |
|
|
7,239,199 |
|
INR |
1,340,000 |
|
|
India Government Bond, 7.26%, 01/14/2029 |
|
|
17,650,469 |
|
INR |
880,000 |
|
|
India Government Bond, 7.72%, 05/25/2025 |
|
|
11,956,281 |
|
INR |
300,000 |
|
|
India Government Bond, 8.15%, 11/24/2026 |
|
|
4,126,631 |
|
INR |
9,590 |
|
|
India Government Bond, 9.20%, 09/30/2030 |
|
|
140,736 |
|
|
|
|
56,644,873 |
|
INDONESIA—14.6% |
|
|
USD |
5,314 |
|
|
Indonesia Government International Bond, 5.35%, 02/11/2049 |
|
|
5,542,646 |
|
USD |
6,000 |
|
|
Indonesia Government International Bond, 7.75%, 01/17/2038(a) |
|
|
7,609,514 |
|
USD |
9,880 |
|
|
Indonesia Government International Bond, 8.50%, 10/12/2035(a) |
|
|
13,247,331 |
|
IDR |
271,570,000 |
|
|
Indonesia Treasury Bond, 6.13%, 05/15/2028 |
|
|
18,189,522 |
|
IDR |
21,000,000 |
|
|
Indonesia Treasury Bond, 6.50%, 02/15/2031 |
|
|
1,396,427 |
|
IDR |
44,000,000 |
|
|
Indonesia Treasury Bond, 7.50%, 04/15/2040 |
|
|
3,095,813 |
|
IDR |
629,200,000 |
|
|
Indonesia Treasury Bond, 8.13%, 05/15/2024 |
|
|
45,553,868 |
|
IDR |
98,500,000 |
|
|
Indonesia Treasury Bond, 8.38%, 04/15/2039 |
|
|
7,473,363 |
|
IDR |
300,000,000 |
|
|
Indonesia Treasury Bond, 8.75%, 05/15/2031 |
|
|
22,884,234 |
|
| 16 | Aberdeen
Asia-Pacific Income Fund, Inc. |
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount
(000) or Shares |
|
|
Description |
|
Value
(US$) |
GOVERNMENT BONDS (continued) |
INDONESIA (continued) |
IDR |
30,000,000 |
|
|
Indonesia Treasury Bond, 9.00%, 03/15/2029 |
|
$ |
2,306,760 |
|
IDR |
16,000,000 |
|
|
Indonesia Treasury Bond, 9.50%, 07/15/2031 |
|
|
1,279,484 |
|
USD |
3,770 |
|
|
Perusahaan Penerbit SBSN Indonesia III, 4.15%, 03/29/2027(a) |
|
|
3,819,048 |
|
|
|
|
132,398,010 |
|
IRAQ—0.9% |
USD |
3,750 |
|
|
Iraq International Bond, 5.80%, 06/13/2022(a) |
|
|
3,619,725 |
|
USD |
4,500 |
|
|
Iraq International Bond, 6.75%, 03/09/2023(a) |
|
|
4,496,400 |
|
|
|
|
8,116,125 |
|
MALAYSIA—7.4% |
MYR |
46,000 |
|
|
Malaysia Government Bond, 2.63%, 04/15/2031 |
|
|
9,096,673 |
|
MYR |
109,600 |
|
|
Malaysia Government Bond, 3.48%, 06/14/2024 |
|
|
25,173,457 |
|
MYR |
17,500 |
|
|
Malaysia Government Bond, 3.73%, 06/15/2028 |
|
|
3,885,293 |
|
MYR |
9,793 |
|
|
Malaysia Government Bond, 3.76%, 05/22/2040 |
|
|
1,924,991 |
|
MYR |
48,300 |
|
|
Malaysia Government Bond, 3.90%, 11/16/2027 |
|
|
10,896,460 |
|
MYR |
20,500 |
|
|
Malaysia Government Bond, 4.18%, 07/15/2024 |
|
|
4,777,855 |
|
MYR |
4,034 |
|
|
Malaysia Government Bond, 4.25%, 05/31/2035 |
|
|
864,865 |
|
MYR |
30,500 |
|
|
Malaysia Government Bond, 4.92%, 07/06/2048 |
|
|
6,844,536 |
|
MYR |
18,000 |
|
|
Malaysia Government Investment Issue, 3.45%, 07/15/2036 |
|
|
3,523,049 |
|
|
|
|
66,987,179 |
|
MALDIVES—0.2% |
USD |
2,200 |
|
|
Maldives Sukuk Issuance Ltd., 9.88%, 04/08/2026(a) |
|
|
2,146,309 |
|
|
|
|
2,146,309 |
|
MEXICO—2.5% |
MXN |
469,000 |
|
|
Mexican Bonos, 8.50%, 05/31/2029 |
|
|
22,289,480 |
|
|
|
|
22,289,480 |
|
NIGERIA—1.4% |
USD |
14,100 |
|
|
Nigeria Government International Bond, 8.75%, 01/21/2031(a) |
|
|
12,737,376 |
|
OMAN—0.7% |
USD |
6,120 |
|
|
Oman Government International Bond, 7.38%, 10/28/2032(a) |
|
|
6,734,999 |
|
|
|
|
6,734,999 |
|
PAKISTAN—3.1% |
USD |
18,129 |
|
|
Pakistan Government International Bond, 6.88%, 12/05/2027(a) |
|
|
14,795,294 |
|
USD |
2,355 |
|
|
Pakistan Government International Bond, 7.38%, 04/08/2031(a) |
|
|
1,805,202 |
|
USD |
7,495 |
|
|
Pakistan Government International Bond, 8.25%, 04/15/2024(a) |
|
|
6,708,025 |
|
USD |
5,209 |
|
|
Pakistan Government International Bond, 8.25%, 09/30/2025(a) |
|
|
4,414,836 |
|
|
|
|
27,723,357 |
|
PHILIPPINES—0.3% |
USD |
2,570 |
|
|
Philippine Government International Bond, 4.20%, 03/29/2047 |
|
|
2,389,420 |
|
SOUTH KOREA—1.6% |
KRW |
23,700,000 |
|
|
Korea Treasury Bond, 1.88%, 03/10/2051 |
|
|
14,267,365 |
|
SUPRANATIONAL—0.8% |
AUD |
10,000 |
|
|
International Bank for Reconstruction & Development, 4.25%, 06/24/2025 |
|
7,269,065 |
|
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
17 |
Statement of Investments (unaudited)
(continued)
April 30, 2022
Principal
Amount
(000) or Shares |
|
Description |
|
Value
(US$) |
GOVERNMENT BONDS (continued) |
UKRAINE—0.8% |
|
|
UAH |
210,000 |
|
|
Ukraine Government Bond, 15.84%, 02/26/2025(i) |
|
$ |
3,593,042 |
|
USD |
10,600 |
|
|
Ukraine Government International Bond, 7.38%, 09/25/2032(a)(f)(i) |
|
|
3,339,000 |
|
|
|
|
6,932,042 |
|
URUGUAY—1.6% |
|
|
UYU |
674,025 |
|
|
Uruguay Government International Bond, 8.25%, 05/21/2031 |
|
|
14,725,198 |
|
|
|
|
14,725,198 |
|
|
|
|
|
Total Government Bonds—63.5% (cost $651,075,599) |
|
|
575,713,669 |
|
SHORT-TERM INVESTMENT—3.1% |
UNITED STATES—3.1% |
USD |
28,385,213 |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class, 0.29%(h) |
|
28,385,213 |
|
|
|
|
28,385,213 |
|
|
|
|
|
Total Short-Term Investment—3.1% (cost $28,385,213) |
|
|
28,385,213 |
|
|
|
|
|
Total Investments—148.1% (cost $1,503,852,965)(j) |
|
|
1,342,860,135 |
|
|
|
|
|
Long Term Debt Securities |
|
|
(420,000,000 |
) |
|
|
|
|
Mandatory Redeemable Preferred Stock at Liquidation Value |
|
|
(50,000,000 |
) |
|
|
|
|
Other Assets in Excess of Liabilities—3.7% |
|
|
33,694,238 |
|
|
|
|
|
Net Assets—100.0% |
|
$ |
906,554,373 |
|
AUD—Australian Dollar
BRL—Brazilian Real
CNH—Chinese Yuan Renminbi Offshore
CNY—Chinese Yuan Renminbi
IDR—Indonesian Rupiah
INR—Indian Rupee
KRW—South Korean Won
KZT—Kazakhstan tenge
MXN—Mexican Peso
MYR—Malaysian Ringgit
PHP—Philippine Peso
SGD—Singapore Dollar
THB—Thai Baht
UAH—Ukraine hryvna
USD—U.S. Dollar
UYU—Uruguayan Peso
(a) | Denotes a restricted security. |
(b) | Perpetual bond. This is a bond that has no maturity date, is
redeemable and pays a steady stream of interest indefinitely. The maturity date presented for these instruments represents the next call/put
date. |
(c) | The maturity date presented for these instruments represents
the next call/put date. |
(d) | Security is in default. |
(e) | This security is government guaranteed. |
(f) | Sinkable security. |
(g) | China A securities. These securities are issued in local
currency, traded in the local markets and are held through a qualified foreign institutional investor license. |
(h) | Registered investment company advised by State Street Global
Advisors. The rate shown is the 7 day yield as of April 30, 2022. |
(i) | Illiquid security. |
(j) | See accompanying Notes to Financial Statements for tax unrealized
appreciation/(depreciation) of securities. |
18 | Aberdeen
Asia-Pacific Income Fund, Inc. |
Statement of Investments (unaudited)
(continued)
April 30, 2022
At April 30, 2022, the Company held the following futures contracts:
Futures
Contracts |
|
Number
of
Contracts
Long/(Short) |
|
Expiration
Date |
|
Notional
Amount |
|
Market
Value |
|
Unrealized
Appreciation/
(Depreciation) |
|
Long
Contract Positions |
|
United
States Treasury Note 6%–10 year |
|
44 |
|
06/21/2022 |
|
$ |
5,579,131 |
|
$ |
5,242,875 |
|
$ |
(336,257 |
) |
United
States Treasury Note 6%–Ultra Bond |
|
270 |
|
06/21/2022 |
|
|
49,914,873 |
|
|
43,318,125 |
|
|
(6,596,748 |
) |
United
States Treasury Note 6%–5 year |
|
114 |
|
06/30/2022 |
|
|
13,455,730 |
|
|
12,844,594 |
|
|
(611,136 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(7,544,141 |
) |
Short
Contract Positions |
|
United
States Treasury Note 6%–10 year |
|
(998 |
) |
06/21/2022 |
|
$ |
(126,892,531 |
) |
$ |
(118,917,938 |
) |
$ |
7,974,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,974,594 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
430,453 |
|
At April 30, 2022, the Fund's open forward foreign currency exchange
contracts were as follows:
Purchase
Contracts
Settlement Date* |
|
Counterparty |
|
Amount
Purchased |
|
Amount
Sold |
|
Fair
Value |
|
Unrealized
Depreciation |
|
Chinese
Yuan Renminbi Offshore/United States Dollar |
|
06/10/2022 |
|
Citibank
N.A. |
|
CNH |
450,000,000 |
|
USD |
70,734,987 |
|
$ |
67,573,724 |
|
$ |
(3,161,263 |
) |
Indian
Rupee/United States Dollar |
|
06/30/2022 |
|
Citibank
N.A. |
|
INR |
611,126,584 |
|
USD |
8,022,855 |
|
|
7,939,553 |
|
|
(83,302 |
) |
Indonesian
Rupiah/United States Dollar |
|
05/12/2022 |
|
Citibank
N.A. |
|
IDR |
53,436,817,036 |
|
USD |
3,693,271 |
|
|
3,685,015 |
|
|
(8,256 |
) |
05/12/2022 |
|
UBS
AG |
|
IDR |
140,551,284,430 |
|
USD |
9,778,256 |
|
|
9,692,447 |
|
|
(85,809 |
) |
Philippine
Peso/United States Dollar |
|
05/16/2022 |
|
Citibank
N.A. |
|
PHP |
1,102,492,653 |
|
USD |
21,362,825 |
|
|
21,018,030 |
|
|
(344,795 |
) |
Singapore
Dollar/United States Dollar |
|
06/15/2022 |
|
Citibank
N.A. |
|
SGD |
10,367,877 |
|
USD |
7,641,081 |
|
|
7,496,730 |
|
|
(144,351 |
) |
06/15/2022 |
|
Royal
Bank of Canada |
|
SGD |
104,839,846 |
|
USD |
76,769,360 |
|
|
75,806,847 |
|
|
(962,513 |
) |
South
Korean Won/United States Dollar |
|
05/23/2022 |
|
Citibank
N.A. |
|
KRW |
82,932,404,842 |
|
USD |
69,531,582 |
|
|
65,674,988 |
|
|
(3,856,594 |
) |
Thai
Baht/United States Dollar |
|
06/10/2022 |
|
Citibank
N.A. |
|
THB |
2,829,595,699 |
|
USD |
85,299,055 |
|
|
82,660,457 |
|
|
(2,638,598 |
) |
|
|
|
|
|
|
|
|
$ |
341,547,791 |
|
$ |
(11,285,481 |
) |
Sale
Contracts
Settlement Date* |
|
Counterparty |
|
Amount
Purchased |
|
Amount
Sold |
|
Fair
Value |
|
Unrealized
Appreciation/ (Depreciation) |
|
United
States Dollar/Australian Dollar |
|
06/24/2022 |
|
UBS
AG |
|
USD |
8,694,434 |
|
AUD |
11,700,000 |
|
$ |
8,274,182 |
|
$ |
420,252 |
|
United
States Dollar/Chinese Yuan Renminbi Offshore |
|
06/10/2022 |
|
BNP
Paribas S.A. |
|
USD |
1,735,662 |
|
CNH |
11,626,546 |
|
|
1,745,887 |
|
|
(10,225 |
) |
06/10/2022 |
|
Citibank
N.A. |
|
USD |
48,217,293 |
|
CNH |
306,747,522 |
|
|
46,062,383 |
|
|
2,154,910 |
|
06/10/2022 |
|
Standard
Chartered Bank |
|
USD |
2,706,013 |
|
CNH |
17,352,686 |
|
|
2,605,746 |
|
|
100,267 |
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
19 |
Statement of Investments (unaudited)
(concluded)
April 30, 2022
Sale
Contracts
Settlement Date* |
|
Counterparty |
|
Amount
Purchased |
|
Amount
Sold |
|
Fair
Value |
|
Unrealized
Appreciation/ (Depreciation) |
|
United
States Dollar/Indonesian Rupiah |
|
05/12/2022 |
|
Citibank
N.A. |
|
USD |
5,274,053 |
|
IDR |
75,829,803,710 |
|
$ |
5,229,240 |
|
$ |
44,813 |
|
05/12/2022 |
|
HSBC
Bank PLC |
|
USD |
2,077,617 |
|
IDR |
29,803,072,978 |
|
|
2,055,226 |
|
|
22,391 |
|
05/12/2022 |
|
UBS
AG |
|
USD |
36,336,586 |
|
IDR |
522,297,000,000 |
|
|
36,017,715 |
|
|
318,871 |
|
United
States Dollar/Malaysian Ringgit |
|
05/10/2022 |
|
BNP
Paribas S.A. |
|
USD |
41,148,153 |
|
MYR |
172,842,815 |
|
|
39,699,952 |
|
|
1,448,201 |
|
United
States Dollar/Philippine Peso |
|
05/16/2022 |
|
Citibank
N.A. |
|
USD |
11,722,262 |
|
PHP |
604,962,500 |
|
|
11,533,065 |
|
|
189,197 |
|
05/16/2022 |
|
UBS
AG |
|
USD |
4,073,932 |
|
PHP |
210,102,012 |
|
|
4,005,406 |
|
|
68,526 |
|
United
States Dollar/Singapore Dollar |
|
06/15/2022 |
|
Standard
Chartered Bank |
|
USD |
1,790,379 |
|
SGD |
2,442,913 |
|
|
1,766,404 |
|
|
23,975 |
|
United
States Dollar/South Korean Won |
|
05/23/2022 |
|
Citibank
N.A. |
|
USD |
2,349,946 |
|
KRW |
2,920,655,025 |
|
|
2,312,895 |
|
|
37,051 |
|
United
States Dollar/Thai Baht |
|
06/10/2022 |
|
HSBC
Bank PLC |
|
USD |
1,734,253 |
|
THB |
59,003,611 |
|
|
1,723,662 |
|
|
10,591 |
|
|
|
|
|
|
|
|
|
$ |
163,031,763 |
|
$ |
4,828,820 |
|
Total
unrealized appreciation on open forward foreign currency exchange contracts |
|
|
|
|
|
$ |
4,839,045 |
|
Total
unrealized depreciation on open forward foreign currency exchange contracts |
|
|
|
|
|
$ |
(11,295,706 |
) |
| * | Certain contracts with different trade dates and like characteristics
have been shown net. |
At April 30, 2022, the Fund held the following centrally cleared interest
rate swaps:
Currency |
|
Notional
Amount |
|
Expiration
Date |
|
Counterparty |
|
Receive
(Pay)
Floating
Rate |
|
Floating
Rate
Index |
|
Fixed
Rate |
|
Premiums
Paid
(Received) |
|
Unrealized
Appreciation/
(Depreciation) |
|
Value |
USD |
|
10,000,000 |
|
12/03/2026 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
1.33% |
|
$ |
– |
|
$ |
667,258 |
|
$ |
667,258 |
USD |
|
6,000,000 |
|
02/12/2027 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
0.75% |
|
|
– |
|
|
601,821 |
|
|
601,821 |
USD |
|
9,000,000 |
|
09/21/2028 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
1.17% |
|
|
– |
|
|
951,430 |
|
|
951,430 |
USD |
|
15,000,000 |
|
05/06/2030 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
0.62% |
|
|
(7,116 |
) |
|
2,510,072 |
|
|
2,502,956 |
USD |
|
5,000,000 |
|
05/11/2030 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
0.67% |
|
|
– |
|
|
818,058 |
|
|
818,058 |
USD |
|
25,000,000 |
|
06/02/2031 |
|
Citibank |
|
Receive |
|
3-month
LIBOR |
|
0.72% |
|
|
– |
|
|
4,460,815 |
|
|
4,460,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(7,116 |
) |
$ |
10,009,454 |
|
$ |
10,002,338 |
See accompanying
Notes to Financial Statements.
20 | Aberdeen
Asia-Pacific Income Fund, Inc. |
Statement of Assets and Liabilities (unaudited)
As of April 30, 2022
Assets |
Investments,
at value (cost $1,503,852,965) |
$ |
1,342,860,135 |
|
Foreign
currency, at value (cost $15,739,127) |
|
15,534,316 |
|
Cash
at broker for futures contracts |
|
5,019,178 |
|
Cash
at broker for interest rate swaps |
|
2,302,198 |
|
Cash |
|
301,882 |
|
Cash
at broker for forward foreign currency contracts |
|
5,090,000 |
|
Interest
receivable |
|
22,963,378 |
|
Variation
margin receivable for futures contracts |
|
7,974,594 |
|
Unrealized
appreciation on forward foreign currency exchange contracts |
|
4,839,045 |
|
Variation
margin receivable for centrally cleared swaps |
|
234,344 |
|
Prepaid
expenses in connection with revolving credit facility, senior secured notes, term loans and Series A Mandatory Redeemable Preferred
Shares |
|
1,894,644 |
|
Prepaid
expenses and other assets |
|
4,613 |
|
Total
assets |
|
1,409,018,327 |
|
Liabilities |
|
|
|
Senior
secured notes payable (Note 8) |
|
350,000,000 |
|
Revolving
credit facility payable (Note 9) |
|
70,000,000 |
|
Series
A Mandatory Redeemable Preferred Shares ($25.00 liquidation value per share; 2,000,000 shares outstanding) (Note 7) |
|
50,000,000 |
|
Unrealized
depreciation on forward foreign currency exchange contracts |
|
11,295,706 |
|
Variation
margin payable for futures contracts |
|
7,544,141 |
|
Payable
for investments purchased |
|
6,850,000 |
|
Interest
payable on revolving credit facility, senior secured notes and term loans |
|
4,592,067 |
|
Investment
management fees payable (Note 3) |
|
776,042 |
|
Dividend
payable on Series A Mandatory Redeemable Preferred Shares |
|
223,438 |
|
Deferred
foreign capital gains tax |
|
171,891 |
|
Administration
fees payable (Note 3) |
|
164,085 |
|
Investor
relations fees payable (Note 3) |
|
82,842 |
|
Director
fees payable |
|
62,953 |
|
Other
accrued expenses |
|
700,789 |
|
Total
liabilities |
|
502,463,954 |
|
|
|
|
|
Net
Assets Applicable to Common Shareholders |
$ |
906,554,373 |
|
Composition
of Net Assets |
|
|
|
Common
stock (par value $0.01 per share) (Note 5) |
$ |
2,476,958 |
|
Paid-in
capital in excess of par |
|
1,148,365,409 |
|
Distributable
accumulated loss |
|
(244,287,994 |
) |
Net
Assets Applicable to Common Shareholders |
$ |
906,554,373 |
|
Net
asset value per share based on 247,695,769 shares issued and outstanding |
$ |
3.66 |
|
See Notes to Financial Statements.
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
21 |
Statement
of Operations (unaudited)
For the Six-Month Period Ended April 30, 2022
Net
Investment Income: |
Income |
Interest
and amortization of discount and premium and other income (net of foreign withholding taxes of $752,122) |
$ |
38,257,231 |
|
Total
Investment Income |
|
38,257,231 |
|
Expenses: |
|
Investment
management fee (Note 3) |
|
4,161,083 |
|
Administration
fee (Note 3) |
|
876,847 |
|
Custodian's
fees and expenses |
|
396,832 |
|
Revolving
credit facility, senior secured notes, term loans and Series A Mandatory Redeemable Preferred Shares fees and expenses |
|
312,963 |
|
Investor
relations fees and expenses (Note 3) |
|
128,796 |
|
Directors'
fees and expenses |
|
122,627 |
|
Reports
to shareholders and proxy solicitation |
|
107,637 |
|
Legal
fees and expenses |
|
70,435 |
|
Insurance
expense |
|
59,799 |
|
Transfer
agent's fees and expenses |
|
58,917 |
|
Independent
auditors' fees and expenses |
|
46,399 |
|
Miscellaneous |
|
48,004 |
|
Total
operating expenses, excluding interest expense |
|
6,390,339 |
|
Interest
expense (Notes 8 & 9) |
|
7,241,541 |
|
Distributions
to Series A Mandatory Redeemable Preferred Shares (Note 7) |
|
1,036,980 |
|
Net
operating expenses |
|
14,668,860 |
|
|
|
|
|
Net
investment income applicable to common shareholders |
|
23,588,371 |
|
Net
Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: |
|
Net realized gain/(loss) from: |
|
Investment
transactions (including $0 capital gains tax) |
|
(21,752,970 |
) |
Futures
contracts |
|
2,175,914 |
|
Interest
rate swaps |
|
2,166,501 |
|
Forward
foreign currency exchange contracts |
|
(1,274,046 |
) |
Foreign
currency transactions |
|
(11,830,286 |
) |
|
|
(30,514,887 |
) |
Net
change in unrealized appreciation/(depreciation) on: |
|
Investments
(including $(425,145) change in deferred capital gains tax) |
|
(118,301,849 |
) |
Interest
rate swaps |
|
5,735,109 |
|
Futures
contracts |
|
(1,988,789 |
) |
Forward
foreign currency exchange rate contracts |
|
(6,082,715 |
) |
Foreign
currency translation |
|
(10,395,024 |
) |
|
|
(131,033,268 |
) |
Net
(loss) from investments, interest rate swaps, futures contracts and foreign currencies |
|
(161,548,155 |
) |
Net
Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations |
$ |
(137,959,784 |
) |
See Notes to Financial Statements.
22 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Statements of Changes in Net Assets
|
|
For the
Six-Month
Period Ended
April 30, 2022
(unaudited) |
|
For
the
Year Ended
October 31, 2021 |
Increase/(Decrease)
in Net Assets Applicable to Common Shareholders: |
|
|
|
|
Operations: |
|
|
|
|
Net
investment income |
$ |
23,588,371 |
|
$ |
43,706,112 |
|
Net
realized loss from investments, interest rate swaps and futures contracts |
|
(17,410,555 |
) |
|
(4,989,789 |
) |
Net
realized loss from foreign currency transactions |
|
(13,104,332 |
) |
|
(12,609,438 |
) |
Net
change in unrealized appreciation/(depreciation) on investments, interest rate swaps and futures contracts |
|
(114,555,529 |
) |
|
(36,216,275 |
) |
Net
change in unrealized appreciation/(depreciation) on foreign currency translation |
|
(16,477,739 |
) |
|
25,385,949 |
|
Net
increase/(decrease) in net assets applicable to common shareholders resulting from operations |
|
(137,959,784 |
) |
|
15,276,559 |
|
Distributions
to Common Shareholders From: |
|
|
|
|
Distributable
earnings |
|
(40,869,813 |
) |
|
(43,575,028 |
) |
Tax
return of capital |
|
– |
|
|
(38,164,598 |
) |
Net
decrease in net assets applicable to common shareholders from distributions |
|
(40,869,813 |
) |
|
(81,739,626 |
) |
Change
in net assets applicable to common shareholders resulting from operations |
|
(178,829,597 |
) |
|
(66,463,067 |
) |
Net
Assets Applicable to Common Shareholders: |
|
|
|
|
Beginning
of period |
|
1,085,383,970 |
|
|
1,151,847,037 |
|
End
of period |
$ |
906,554,373 |
|
$ |
1,085,383,970 |
|
Amounts listed as "–" are $0 or round to $0.
See Notes to Financial Statements.
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
23 |
Statement of Cash Flows (unaudited)
For the Six-Month Period Ended April 30, 2022
Cash
Flows from Operating Activities |
Net
decrease in net assets resulting from operations |
$ |
(137,959,784 |
) |
Adjustments
to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: |
|
|
Investments
purchased |
|
(145,974,159 |
) |
Investments
sold and principal repayments |
|
204,416,368 |
|
Increase
in short-term investments, excluding foreign government securities |
|
(5,362,160 |
) |
Net
amortization/accretion of premium (discount) |
|
716,154 |
|
Decrease
in cash due to broker for forward foreign currency exchange contracts |
|
(230,000 |
) |
Decrease
in interest and dividends receivable |
|
1,365,761 |
|
Net
change unrealized (appreciation) depreciation on forward foreign currency exchange contracts |
|
6,082,715 |
|
Decrease
in prepaid expenses |
|
263,796 |
|
Increase
in interest payable on bank loan |
|
78 |
|
Decrease
in accrued investment management fees payable |
|
(115,823 |
) |
Increase
in other accrued expenses |
|
107,964 |
|
Increase
in variation margin payable for futures contracts |
|
1,988,789 |
|
Net
change in unrealized depreciation from investments |
|
118,301,849 |
|
Net
change in unrealized depreciation from foreign currency translations |
|
10,395,024 |
|
Net
realized loss on investment transactions |
|
21,752,970 |
|
Net
cash provided by operating activities |
|
75,749,542 |
|
Cash
Flows from Financing Activities |
|
Decrease
in bank loan payable |
|
(30,000,000 |
) |
Distributions
paid to shareholders |
|
(40,869,813 |
) |
Net
cash paid (received) for swap contracts |
|
(333,262 |
) |
Net
cash used in financing activities |
$ |
(71,203,075 |
) |
Effect
of exchange rate on cash |
|
(41,935 |
) |
Net
change in cash |
|
4,504,532 |
|
Unrestricted
and restricted cash and foreign currency, beginning of period |
|
23,743,042 |
|
Unrestricted
and restricted cash and foreign currency, end of period |
$ |
28,247,574 |
|
Supplemental
disclosure of cash flow information: |
|
Cash
paid for interest and fees on borrowings: |
$ |
7,241,463 |
|
24 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Statement of Cash Flows (unaudited)
(concluded)
For the Six-Month Period Ended April 30, 2022
Reconciliation of unrestricted and restricted cash to the statements
of assets and liabilities
|
Six-Month
Period Ended
April 30, 2022 |
Year
Ended
October 31, 2021 |
Cash |
$ 301,882 |
$ 5,570,685 |
Foreign
currency, at value |
15,534,316 |
11,255,759 |
Cash
at broker for interest rate swaps |
2,302,198 |
4,104,161 |
Cash
at broker for futures contracts |
5,019,178 |
2,342,437 |
Cash
at broker for forward foreign currency contracts |
5,090,000 |
470,000 |
|
$ 28,247,574 |
$ 23,743,042 |
Amounts listed as "–" are $0 or round to $0.
See Notes to Financial Statements.
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
25 |
Financial Highlights
|
|
For
the
Six-Month
Period Ended
April 30, 2022 |
|
|
For
the Fiscal Years Ended October 31, |
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
PER
SHARE OPERATING PERFORMANCE(a): |
|
Net
asset value per common share, beginning of period |
|
$4.38 |
|
|
$4.65 |
|
|
$4.88 |
|
|
$4.59 |
|
|
$5.43 |
|
|
$5.69 |
|
|
Net
investment income |
|
0.10 |
|
|
0.18 |
|
|
0.15 |
|
|
0.18 |
|
|
0.21 |
|
|
0.23 |
|
|
Net
realized and unrealized gains/(losses) on investments, interest rate swaps, futures contracts and foreign currency transactions |
|
(0.65 |
) |
|
(0.12 |
) |
|
(0.05 |
) |
|
0.48 |
|
|
(0.64 |
) |
|
(0.07 |
) |
|
Total
from investment operations applicable to common shareholders |
|
(0.55 |
) |
|
0.06 |
|
|
0.10 |
|
|
0.66 |
|
|
(0.43 |
) |
|
0.16 |
|
|
Distributions
to common shareholders from: |
|
Net
investment income |
|
(0.17 |
) |
|
(0.18 |
) |
|
(0.07 |
) |
|
(0.12 |
) |
|
(0.25 |
) |
|
(0.26 |
) |
|
Net
realized gains |
|
– |
|
|
– |
|
|
(0.01 |
) |
|
– |
|
|
– |
|
|
– |
|
|
Tax
return of capital |
|
– |
|
|
(0.15 |
) |
|
(0.25 |
) |
|
(0.25 |
) |
|
(0.17 |
) |
|
(0.16 |
) |
|
Total
distributions to shareholders |
|
(0.17 |
) |
|
(0.33 |
) |
|
(0.33 |
) |
|
(0.37 |
) |
|
(0.42 |
) |
|
(0.42 |
) |
|
Capital
Share Transactions: |
|
Impact
due to open market repurchase policy (Note 7) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
0.01 |
|
|
– |
|
|
Total
capital share transactions |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
0.01 |
|
|
– |
|
|
Net
asset value per common share, end of period |
|
$3.66 |
|
|
$4.38 |
|
|
$4.65 |
|
|
$4.88 |
|
|
$4.59 |
|
|
$5.43 |
|
|
Market
value, end of period |
|
$3.20 |
|
|
$4.22 |
|
|
$3.80 |
|
|
$4.25 |
|
|
$3.93 |
|
|
$5.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Return Based on(b): |
|
Market
value |
|
(20.63% |
) |
|
19.87% |
|
|
(2.82% |
) |
|
18.12% |
|
|
(14.29% |
) |
|
11.19% |
|
|
Net
asset value |
|
(12.54% |
) |
|
1.67% |
|
|
3.56% |
|
|
16.13% |
|
|
(7.27% |
) |
|
3.79% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio
to Average Net Assets Applicable to Common Shareholders/Supplementary Data(c): |
|
Net
assets applicable to common shareholders, end of period (000 omitted) |
|
$906,554 |
|
|
$1,085,384 |
|
|
$1,151,847 |
|
|
$1,208,154 |
|
|
$1,142,604 |
|
|
$1,369,104 |
|
|
Average
net assets applicable to common shareholders (000 omitted) |
|
$1,018,780 |
|
|
$1,165,019 |
|
|
$1,145,806 |
|
|
$1,194,235 |
|
|
$1,290,606 |
|
|
$1,382,050 |
|
|
Net
operating expenses |
|
2.90% |
(d) |
|
2.57% |
|
|
2.87% |
|
|
2.84% |
|
|
2.67% |
|
|
2.42% |
|
|
Net
operating expenses without reimbursement |
|
2.90% |
(d) |
|
2.57% |
|
|
2.87% |
|
|
2.84% |
|
|
2.67% |
|
|
2.42% |
|
|
Net
operating expenses, excluding interest expense and distributions to Series A Mandatory Redeemable Preferred Shares |
|
1.26% |
(d) |
|
1.16% |
|
|
1.32% |
|
|
1.22% |
|
|
1.17% |
|
|
1.15% |
|
|
Net
investment income |
|
4.67% |
(d) |
|
3.75% |
|
|
3.29% |
|
|
3.68% |
|
|
4.14% |
|
|
4.17% |
|
|
Portfolio
turnover |
|
10% |
(e) |
|
44% |
|
|
88% |
|
|
46% |
|
|
44% |
|
|
57% |
|
|
Leverage
(senior securities) outstanding (000 omitted) |
|
$420,000 |
|
|
$450,000 |
|
|
$415,000 |
|
|
$531,000 |
|
|
$505,000 |
|
|
$550,000 |
|
|
Leverage
(preferred stock) outstanding (000 omitted) |
|
$50,000 |
|
|
$50,000 |
|
|
$50,000 |
|
|
$50,000 |
|
|
$50,000 |
|
|
$50,000 |
|
|
Asset
coverage ratio on long-term debt obligations at period end(f) |
|
328% |
|
|
352% |
|
|
390% |
|
|
337% |
|
|
336% |
|
|
358% |
|
|
Asset
coverage per $1,000 on long-term debt obligations at period end |
|
$3,278 |
|
|
$3,523 |
|
|
$3,896 |
|
|
$3,369 |
|
|
$3,362 |
|
|
$3,580 |
|
|
Asset
coverage ratio on total leverage at period end(g) |
|
293% |
|
|
317% |
|
|
348% |
|
|
308% |
|
|
306% |
|
|
328% |
|
|
Asset
coverage per share on total leverage at period end |
|
$2,929 |
|
|
$3,171 |
|
|
$3,477 |
|
|
$3,079 |
|
|
$3,059 |
|
|
$3,282 |
|
|
26 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Financial Highlights (concluded)
| (a) | Based on average shares outstanding. |
| (b) | Total investment return based on market value is calculated
assuming that shares of the Fund's common stock were purchased at the closing market price as of the beginning of the period, dividends,
capital gains and other distributions were reinvested as provided for in the Fund's dividend reinvestment plan and then sold at the closing
market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing
or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund's
net asset value is substituted for the closing market value. |
| (c) | Ratios calculated on the basis of income, expenses and preferred
share dividends applicable to both the common and preferred shares relative to the average net assets of common shareholders. For the
six months ended April 30, 2022 and the fiscal years ended October 31, 2021, 2020, 2019, 2018 and 2017, the ratios of net investment
income before preferred stock dividends to average net assets of common shareholders were 4.91%, 3.93%, 3.47%, 3.85%, 4.30% and 4.32%
respectively. |
| (d) | Annualized. |
| (e) | Not annualized. |
| (f) | Asset coverage ratio is calculated by dividing net assets plus
the amount of any borrowings, including Series A Mandatory Redeemable Preferred Shares, for investment purposes by the amount of any
long-term debt obligations, which includes the senior secured notes and revolving credit facility. |
| (g) | Asset coverage ratio is calculated by dividing net assets plus
the amount of any borrowings for investment purposes by the amount of any borrowings. |
Amounts listed as "–" are $0 or round to $0.
See Notes to Financial Statements.
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
27 |
Notes to Financial Statements (unaudited)
April 30, 2022
1. Organization
Aberdeen Asia-Pacific Income Fund, Inc. (the "Fund") was incorporated
in Maryland on March 14, 1986 as a closed-end, non-diversified management investment company. The Fund's principal investment objective
is to seek current income. The Fund may also achieve incidental capital appreciation. To achieve its investment objectives, the Fund normally
invests at least 80% of its total assets, plus the amount of any borrowings for investment purposes, in "Asia-Pacific debt securities,"
which include: (1) debt securities of Asia-Pacific Country issuers, including securities issued by Asia-Pacific Country governmental entities,
as well as by banks, companies and other entities which are located in Asia-Pacific Countries, whether or not denominated in an Asia-Pacific
Country currency; (2) debt securities of other issuers, denominated in, or linked to, the currency of an Asia-Pacific Country, including
securities issued by supranational issuers, such as The World Bank and derivative debt securities that replicate, or substitute for, the
currency of an Asia-Pacific Country; (3) debt securities issued by entities which, although not located in an Asia-Pacific Country, derive
at least 50% of their revenues from Asia-Pacific Countries or have at least 50% of their assets located in Asia-Pacific Countries; and
(4) debt securities issued by a wholly-owned subsidiary of an entity located in an Asia-Pacific Country, provided that the debt securities
are guaranteed by the parent entity located in the Asia-Pacific Country (the "80% Policy"). With reference to items (3) and
(4) above, Asia-Pacific debt securities may be denominated in an Asia-Pacific Country currency or U.S. dollars. "Asia-Pacific Countries"
(each, an "Asia-Pacific Country") means countries included in "Asia" and "Oceania" in the United Nations
("UN") geographic regions used by the UN Statistics Division. The 80% Policy, which went into effect on June 24, 2020, is fundamental
and may not be changed without a vote of shareholders. There can be no assurance that the Fund will achieve its investment objectives.
The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic developments in a specific
industry, country or region.
Prior to June 24, 2020, the Fund normally invested up to 80% of its total
assets, plus the amount of any borrowings for investment purposes, in Asian debt securities, Australian debt securities and New Zealand
debt securities (the "prior 80% policy"). Under the prior 80% policy "Asian debt securities" included: (1) debt securities
of Asian Country (as defined below) issuers, including securities issued by Asian Country governmental entities, as well as by banks,
companies and other entities which are located in Asian Countries, whether or not denominated in an Asian Country currency; (2) debt securities
of other issuers denominated in, or linked to, the currency of an Asian Country, including securities issued by supranational issuers,
such as The World Bank and derivative debt securities that replicate, or substitute for, the
currency of an Asian Country; (3) debt securities issued by entities
which, although not located in an Asian Country, derive at least 50% of their revenues from Asian Countries or have at least 50% of their
assets located in Asian Countries; and (4) debt securities issued by a wholly-owned subsidiary of an entity located in an Asian Country,
provided that the debt securities are guaranteed by the parent entity located in the Asian Country. With reference to items (3) and (4)
above, Asian debt securities may be denominated in an Asian Country currency or in Australian, New Zealand or U.S. Dollars.
Additionally, prior to June 24, 2020, the maximum country exposure to
any one Asian Country (other than Korea) was limited to 20% of the Fund's total assets and the maximum currency exposure to any one Asian
Country currency (other than Korea) was limited to 10% of the Fund's total assets. Also, prior to June 24, 2020, the maximum country exposure
for Korea was limited to 40% of the Fund's total assets, and the maximum currency exposure for Korea was limited to 25% of the Fund's
total assets. Although the Fund eliminated these fundamental country limits, it replaced them with non-fundamental country limits. Effective
June 24, 2020, the maximum exposure to any one "Investment Grade Country" (other than the U.S.) is limited to 25% of the Fund's
total assets and the maximum exposure to any one "Non-Investment Grade Country" is limited to 15% of the Fund's total assets.
Investment Grade Countries are those countries whose sovereign debt is rated not less than Baa3 by Moody's Investors Service, Inc. ("Moody's"),
BBB- by S&P Global Ratings ("S&P") or BBB- by Fitch or comparably rated by another appropriate nationally or internationally
recognized ratings agency. Non-Investment Grade Countries are those that are not Investment Grade Countries.
2. Summary of Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment
company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification
Topic 946 Financial Services-Investment Companies.
The
following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies
conform to generally accepted accounting principles ("GAAP") in the United States of America. The preparation of financial
statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars and the U.S.
Dollar is used as both the
28 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
functional and reporting currency. However, the Australian Dollar is
the functional currency for U.S. federal tax purposes.
a. Security Valuation:
The Fund values its securities at current market value or fair value,
consistent with regulatory requirements. "Fair value" is defined in the Fund's Valuation and Liquidity Procedures as the price
that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants
without a compulsion to transact at the measurement date.
In accordance with the authoritative guidance on fair value measurements
and disclosures under GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs
to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based
upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant
observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements
to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market
participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular
valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique.
Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing
the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs
are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset
or liability developed based on the best information available in the circumstances. A financial instrument's level within the fair value
hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
Long-term debt and other fixed-income securities are valued at the last
quoted or evaluated bid price on the valuation date provided by an independent pricing service provider approved by the Board. If there
are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming
orderly transactions of an institutional "round lot" size and the strategies employed by the Fund's investment manager generally
trade in round lot sizes. In certain circumstances, some trades may occur in smaller "odd lot" sizes which may be effected at
lower or higher prices than institutional round lot trades. Short-term debt securities (such as
commercial paper and U.S. treasury bills) having a remaining maturity
of 60 days or less are valued at amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities
are generally determined to be Level 2 investments.
Short-term investments are comprised of cash and cash equivalents invested
in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street Institutional U.S. Government
Money Market Fund; which has elected to qualify as a "government money market fund" pursuant to Rule 2a-7 under the 1940 Act,
and has an objective, which is not guaranteed, to maintain a $1.00 per share net asset value ("NAV"). Generally, these investment
types are categorized as Level 1 investments.
Derivatives are valued at fair value. Exchange traded derivatives are
generally Level 1 investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward foreign
currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations
are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based
on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid
price if no settlement price is available. Interest rate swaps agreements are generally valued by an approved pricing agent based on the
terms of the swap agreement (including future cash flows).
In the event that a security's market quotations are not readily available
or are deemed unreliable (for reasons other than because the foreign exchange on which they trade closed before the "Valuation Time"
(as defined below)), the security is valued at fair value as determined by the Fund's Pricing Committee, taking into account the relevant
factors and surrounding circumstances using valuation policies and procedures approved by the Board. Under normal circumstances the Valuation
Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). A security that has been fair
valued by the Fund's Pricing Committee may be classified as Level 2 or Level 3 depending on the nature of the inputs. The three-level
hierarchy of inputs is summarized below:
Level 1 – quoted prices in active markets for identical investments;
Level 2 – other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds, and credit risk); or
Level 3 – significant unobservable inputs (including the Fund's
own assumptions in determining the fair value of investments).
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
29 |
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
A summary of standard inputs is listed below:
Security Type |
|
Standard Inputs |
Debt and other fixed-income
securities |
|
Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable
securities, credit quality, yield, and maturity. |
Forward foreign currency contracts |
|
Forward exchange rate quotations. |
Swap agreements |
|
Market information pertaining to the underlying reference assets, i.e., credit spreads, credit event
probabilities, fair values, forward rates, and volatility measures. |
The following is a summary of the inputs used as of April 30, 2022 in
valuing the Fund's investments and other financial instruments at fair value. The inputs or methodologies used for valuing securities
are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments
for a detailed breakout of the security types:
Investments, at Value |
|
Level 1 – Quoted
Prices ($) |
|
Level 2 – Other Significant
Observable Inputs ($) |
|
Level 3 – Significant
Unobservable Inputs ($) |
|
Total ($) |
|
Investments in Securities |
|
Fixed Income Investments |
|
Corporate Bonds |
|
|
$– |
|
|
$738,761,253 |
|
|
$– |
|
|
$738,761,253 |
|
Government Bonds |
|
|
– |
|
|
575,713,669 |
|
|
– |
|
|
575,713,669 |
|
Total Fixed Income Investments |
|
|
– |
|
|
1,314,474,922 |
|
|
– |
|
|
1,314,474,922 |
|
Short-Term Investment |
|
|
28,385,213 |
|
|
– |
|
|
– |
|
|
28,385,213 |
|
Total Investments |
|
|
$28,385,213 |
|
|
$1,314,474,922 |
|
|
$– |
|
|
$1,342,860,135 |
|
Other Financial Instruments |
|
Centrally Cleared Interest Rate Swap Agreements |
|
|
$– |
|
|
$10,009,454 |
|
|
$– |
|
|
$10,009,454 |
|
Forward Foreign Currency Exchange Contracts |
|
|
– |
|
|
4,839,045 |
|
|
– |
|
|
4,839,045 |
|
Futures Contracts |
|
|
7,974,594 |
|
|
– |
|
|
– |
|
|
7,974,594 |
|
Total Other Financial Instruments |
|
|
$7,974,594 |
|
|
$14,848,499 |
|
|
$– |
|
|
$22,823,093 |
|
Total Assets |
|
|
$36,359,807 |
|
|
$1,329,323,421 |
|
|
$– |
|
|
$1,365,683,228 |
|
Liabilities |
|
Other Financial Instruments |
|
Forward Foreign Currency Exchange Contracts |
|
|
$– |
|
|
$(11,295,706) |
|
|
$– |
|
|
$(11,295,706) |
|
Futures Contracts |
|
|
(7,544,141) |
|
|
– |
|
|
– |
|
|
(7,544,141) |
|
Total Liabilities – Other Financial Instruments |
|
|
$(7,544,141) |
|
|
$(11,295,706) |
|
|
$– |
|
|
$(18,839,847) |
|
Other Financial Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as "–" are $0 or round to $0.
For the six-months ended April 30, 2022, there were no significant changes
to the fair valuation methodologies.
30 | Aberdeen
Asia-Pacific Income Fund, Inc. |
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
b. Restricted Securities:
Restricted securities are privately-placed securities whose resale is
restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale
without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without
registration pursuant to Regulation S under the Securities Act of 1933, as amended. Rule 144A securities may be freely traded among certain
qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.
c. Foreign Currency Translation:
Foreign securities, currencies, and other assets and liabilities denominated
in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation
Time, as provided by an independent pricing service approved by the Board.
Foreign currency amounts are translated into U.S. Dollars on the following
basis:
(i) | market value of investment securities, other assets and liabilities
– at the current daily rates of exchange at the Valuation Time; and |
(ii) | purchases and sales of investment securities, income and
expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The Fund isolates that portion of the results of operations arising from
changes in the foreign exchange rates due to the fluctuations in the market prices of the securities held at the end of the reporting
period. Similarly, the Fund isolates the effect of changes in foreign exchange rates from the fluctuations arising from changes in the
market prices of portfolio securities sold during the reporting period.
Net exchange gain/(loss) is realized from sales and maturities of portfolio
securities, sales of foreign currencies, settlement of securities transactions, dividends, interest and foreign withholding taxes recorded
on the Fund's books. Net unrealized foreign exchange appreciation/(depreciation) includes changes in the value of portfolio securities
and other assets and liabilities arising as a result of changes in the exchange rate. The net realized and unrealized foreign exchange
gain/(loss) shown in the composition of net assets represents foreign exchange gain/(loss) for book purposes that may not have been recognized
for tax purposes.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency
relative to the U.S. Dollar. Generally, when the U.S. Dollar
rises in value against foreign currency, the Fund's investments denominated
in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S.
Dollar falls in relative value.
d. Derivative Financial Instruments:
The Fund is authorized to use derivatives to manage currency risk, interest
rate risk and credit risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the value
of the contract or if the counterparty does not perform under the contract. The use of derivative instruments involves, to varying degrees,
elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities.
Forward Foreign Currency Exchange Contracts:
A forward foreign currency exchange contract ("forward contract")
involves an obligation to purchase and sell a specific currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the contract. Forward contracts are used to manage the Fund's
currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities in a market,
or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in
absolute terms or relative to a particular benchmark or index. The use of forward contracts allows for the separation of investment decision-making
between foreign exchange holdings and their currencies.
The forward contract is marked-to-market daily and the change in market
value is recorded by the Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent
pricing provider. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the value
at the time it was opened and the value at the time it was closed. These realized and unrealized gains and losses are reported on the
Statement of Operations. During the six-month period ended April 30, 2022, the Fund used forward contracts to hedge and manage Australian
and certain Asian currency exposure.
While the Fund may enter into forward contracts to seek to reduce currency
exchange rate risks, transactions in such contracts involve certain risks. The Fund could be exposed to risks if the counterparties to
the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while the Fund
may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for the Fund than
if it had not engaged in any such transactions. Moreover, there may be
Aberdeen
Asia-Pacific Income Fund, Inc. |
31 |
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
imperfect
correlation between the Fund's portfolio holdings or securities quoted or denominated in a particular currency and forward contracts entered
into by the Fund. Such imperfect correlation may prevent the Fund from achieving a complete hedge, which will expose the Fund to the risk
of foreign exchange loss.
Forward contracts are subject to the risk that a counterparty to such
contracts may default on their obligations. Since a forward contract is not guaranteed by an exchange or clearing house, a default on
the contract would deprive the Fund of unrealized profits, transaction costs or the benefits of a currency hedge or force the Fund to
cover its purchase or sale commitments, if any, at the market price at the time of the default.
Futures Contracts:
The Fund may invest in financial futures contracts ("futures contracts")
for the purpose of hedging its existing portfolio securities, or securities that the Fund intends to purchase, against fluctuations in
value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes,
however, in those instances, (a) either the aggregate initial margin and premiums required to establish the Fund's position may not exceed
5% of the Fund's NAV after taking into account unrealized profits and unrealized losses on any such contract into which it has entered
into, or (b) the aggregate net notional value of the Fund's position may not exceed 100% of the Fund's NAV after taking into account unrealized
profits and unrealized losses on any such contract which it has entered into.
Upon entering into a futures contract, the Fund is required to pledge
to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This payment is known as initial
margin. Subsequent payments, known as "variation margin," are calculated each day, depending on the daily fluctuations in the
fair value/market value of the underlying assets. An unrealized gain/(loss) equal to the variation margin is recognized on a daily basis.
When the contract expires or is closed, the gain/(loss) is realized and is presented in the Statement of Operations as a net realized
gain/(loss) on futures contracts. Futures contracts are valued daily at their last quoted sale price on the exchange on which they are
traded.
A "sale" of a futures contract means a contractual obligation
to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A "purchase"
of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time
in the future. During the six-month period ended April 30, 2022, the Fund used U.S. Treasury
futures to manage U.S. interest rate exposure and hedge the U.S. interest
rate risk.
There are significant risks associated with the Fund's use of futures
contracts, including the following: (1) the success of a hedging strategy may depend on the ability of the Fund's investment manager and/or
sub-adviser to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2)
there may be an imperfect or no correlation between the movement in the price of futures contracts, interest rates and the value/market
value of the securities held by the Fund; (3) there may not be a liquid secondary market for a futures contract; (4) trading restrictions
or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts. In addition, should
market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss.
Swaps:
A swap is an agreement that obligates two parties to exchange a series
of cash flows and/or meet certain obligations at specified intervals based upon or calculated by reference to changes in specified prices
or rates (interest rates in the case of interest rate swaps, currency exchange rates in the case of currency swaps) or the occurrence
of a credit event with respect to an underlying reference obligation (in the case of a credit default swap) for a specified amount of
an underlying asset or notional principal amount. The Fund will enter into swaps only on a net basis, which means that the two payment
streams are netted out, with the Fund receiving or paying, as the case may be, only the amount of the difference between the two payments.
Except for currency swaps and credit default swaps, the notional principal amount is used solely to calculate the payment streams but
is not exchanged. With respect to currency swaps, actual principal amounts of currencies may be exchanged by the counterparties at the
initiation, and again upon the termination of the transaction.
Traditionally, swaps were customized, privately negotiated agreements
executed between two parties ("OTC Swaps") but since 2013, certain swaps are required to be cleared pursuant to rules and regulations
related to the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") and/or Regulation (EU) No 648/2012
on OTC Derivatives, Central Counterparties and Trade Repositories ("EMIR") ("Cleared Swaps"). Like OTC Swaps, Cleared
Swaps are negotiated bilaterally. Unlike OTC Swaps, the act of clearing results in two swaps executed between each of the parties and
a central counterparty ("CCP"), and thus the counterparty credit exposure of the parties is to the CCP rather than to one another.
Upon entering into a Cleared Swap,
32 | Aberdeen
Asia-Pacific Income Fund, Inc. |
| |
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
the Fund is required to pledge an amount of
cash and/or other assets equal to a certain percentage of the contract amount. This payment is known as "initial margin".
Subsequent payments, known as "variation margin," are calculated each day, depending on the daily fluctuations in the fair
value/market value of the underlying assets. An unrealized gain or loss equal to the variation margin is recognized on a daily
basis. When the contract matures or is terminated, the gain or loss is realized and is presented in the Statements of Operations as
a net realized gain or loss on swap contracts. As of March 2017, the Fund may be required to provide variation and/or initial margin
for OTC Swaps pursuant to further rules and regulations related to Dodd Frank and EMIR. The margin requirements associated with OTC
Swaps and Cleared Swaps may not be the same.
The rights and obligations of the parties to a swap are memorialized
in either an International Swap Dealers Association, Inc. Master Agreement ("ISDA") for OTC Swaps or a futures agreement with
an OTC addendum for Cleared Swaps ("Clearing Agreement"). These agreements are with certain counterparties whose creditworthiness
is monitored on an ongoing basis by risk professionals. Both the ISDA and Clearing Agreement maintain provisions for general obligations,
representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of default or termination
by one party may give the other party the right to terminate and settle all of its contracts.
Entering into swap agreements involves, to varying degrees, elements
of credit, market and interest risk in excess of the amounts reported
on the Statement of Assets and Liabilities. Such risks involve the possibility
that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform
and that there may be unfavorable changes in the value of the index or securities underlying the agreement. The Fund's maximum risk of
loss from counterparty risk related to swaps is the fair value of the contract. This risk is mitigated by the posting of collateral by
the counterparties to the Fund to cover the Fund's exposure to the counterparty.
Interest Rate Swaps
The Fund uses interest rate swap contracts to manage its exposure to
interest rates. Interest rate swap contracts typically represent the exchange between the Fund and a counterparty of respective commitments
to make variable rate and fixed rate payments with respect to a notional amount of principal. Interest rate swap contracts may have a
term that is greater than one year, but typically require periodic interim settlement in cash, at which time the specified value of the
variable interest rate is reset for the next settlement period. Net payments of interest are recorded as realized gains or losses. During
the period that the swap contract is open, the contract is marked-to-market as the net amount due to or from the Fund and changes in the
value of swap contracts are recorded as unrealized gains or losses. During the six-month period ended April 30, 2022, the Fund used interest
rate swaps to hedge the interest rate risk on the Fund's Revolving Credit Facility (as defined in Note 9 below).
Summary of Derivative Instruments:
The Fund may use derivatives for various purposes as noted above. The
following is a summary of the fair value of derivative instruments, not accounted for as hedging instruments, as of April 30, 2022:
|
|
Asset Derivatives |
|
Liability Derivatives |
|
Derivatives Not Accounted For as
Hedging Instruments
and Risk Exposure |
|
Statement of Assets and
Liabilities Location |
|
Fair Value |
|
|
Statement of Assets and
Liabilities Location |
|
|
Fair Value |
|
|
Interest rate swaps
(interest rate risk) |
|
Unrealized appreciation on
receivable for centrally
cleared interest rate swaps |
|
$10,009,454 |
|
|
Unrealized depreciation
payable for centrally
cleared interest rate swaps |
|
|
$– |
|
|
Forward foreign currency exchange
contracts (foreign exchange risk) |
|
Unrealized appreciation
on forward foreign currency
exchange contracts |
|
$4,839,045 |
|
|
Unrealized depreciation
on forward foreign currency
exchange contracts |
|
|
$11,295,706 |
|
|
Futures contracts
(interest rate risk) |
|
Variation margin receivable
for futures contracts |
|
$7,974,594 |
|
|
Variation margin payable
for futures contracts |
|
|
$7,544,141 |
|
|
Total |
|
|
|
$22,823,093 |
|
|
|
|
|
$18,839,847 |
|
|
| * | The values shown reflect unrealized appreciation/(depreciation)
and the values shown in the Statement of Assets and Liabilities reflects variation margin. |
Amounts listed as "–" are $0 or round to $0.
Aberdeen
Asia-Pacific Income Fund, Inc. |
33 |
Notes to Financial Statements (unaudited)
(continued)
April 30, 2022
The Fund has transactions that may be subject to enforceable master netting
agreements. A reconciliation of the gross amounts on the Statement of Assets and Liabilities as of April 30, 2022 to the net amounts by
broker and derivative type, including any collateral received or pledged, is included in the following tables:
|
|
|
|
Gross Amounts Not Offset
in Statement of
Assets & Liabilities |
|
|
|
Gross Amounts Not Offset
in Statement of
Assets and Liabilities |
|
Description |
|
Gross Amounts
of Assets
Presented in
Statement of
Assets and
Liabilities |
|
Financial
Instruments |
|
Collateral
Received(1) |
|
Net
Amount(3) |
|
Gross Amounts
of Liabilities
Presented in
Statement of
Assets and
Liabilities |
|
Financial
Instruments |
|
Collateral
Pledged(1) |
|
Net
Amount(3) |
|
|
|
Assets |
|
Liabilities |
|
Forward foreign
currency(2) |
|
BNP Paribas S.A. |
|
|
$1,448,201 |
|
|
|
$(10,225 |
) |
|
|
$– |
|
|
|
$1,437,976 |
|
|
|
$10,225 |
|
|
|
$(10,225 |
) |
|
|
$– |
|
|
|
$– |
|
|
Citibank N.A. |
|
|
2,425,971 |
|
|
|
(2,425,971 |
) |
|
|
– |
|
|
|
– |
|
|
|
10,237,159 |
|
|
|
(2,425,971 |
) |
|
|
(4,690,000 |
) |
|
|
3,121,188 |
|
|
HSBC Bank PLC |
|
|
32,982 |
|
|
|
– |
|
|
|
– |
|
|
|
32,982 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
Royal Bank of Canada |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
962,513 |
|
|
|
– |
|
|
|
– |
|
|
|
962,513 |
|
|
Standard Chartered Bank |
|
|
124,242 |
|
|
|
– |
|
|
|
– |
|
|
|
124,242 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
UBS AG |
|
|
807,649 |
|
|
|
(85,809 |
) |
|
|
– |
|
|
|
721,840 |
|
|
|
85,809 |
|
|
|
(85,809 |
) |
|
|
– |
|
|
|
– |
|
|
(1) | In some instances, the actual collateral received and/or
pledged may be more than the amount shown here due to overcollateralization. |
(2) | Includes financial instruments (swaps and forwards) which
are not subject to a master netting arrangement across funds, or another similar arrangement. |
(3) | Net amounts represent the net receivable/(payable) that would
be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions
governed under the same master netting arrangements with the same legal entity. |
The effect of derivative instruments on the Statement of Operations for
the six-month period ended April 30, 2022:
Derivatives Not Accounted For as
Hedging Instruments |
|
Location of Gain or (Loss) on
Derivatives |
|
Realized Gain
or (Loss) on
Derivatives |
|
Change in
Unrealized
Appreciation/
(Depreciation) on
Derivatives |
|
Interest rate swaps
(interest rate risk) |
|
Realized/Unrealized Gain/(Loss) from
Investments, Interest Rate Swaps,
Futures Contracts and Foreign Currencies |
|
$2,166,501 |
|
$5,735,109 |
|
|
|
|
|
|
|
|
|
Forward
foreign currency exchange contracts (foreign exchange risk) |
|
|
|
$(1,274,046 |
) |
$(6,082,715) |
|
Futures
contracts
(interest rate risk) |
|
|
|
$2,175,914 |
|
$(1,988,789) |
|
Total |
|
|
|
$3,068,369 |
|
$(2,336,395) |
|
34 | Aberdeen
Asia-Pacific Income Fund, Inc. |
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
Information about derivatives reflected as of the date of this report
is generally indicative of the type of activity during the six-month period ended April 30, 2022. The table below summarizes the weighted
average values of derivatives holdings for the Fund during the six-month period ended April 30, 2022.
Derivative |
Average
Notional Value |
Purchase Forward Foreign Currency Contracts |
$377,859,685 |
Sale Forward Foreign Currency Contracts |
185,585,527 |
Long Futures Contracts |
66,878,681 |
Short Futures Contracts |
132,905,692 |
Interest Rate Swaps |
107,996,073 |
e. Bank Loans:
The Fund may invest in bank loans. Bank loans include floating and fixed-rate
debt obligations. Floating rate loans are debt obligations issued by companies or other entities with floating interest rates that reset
periodically. Bank loans may include, but are not limited to, term loans, delayed funding loans, bridge loans and revolving credit facilities.
Loan interest will primarily take the form of assignments purchased in the primary or secondary market but may include participations.
Floating rate loans are secured by specific collateral of the borrower and are senior to most other securities of the borrower (e.g.,
common stock or debt instruments) in the event of bankruptcy. Floating rate loans are often issued in connection with recapitalizations,
acquisitions, leveraged buyouts, and refinancings. Floating rate loans are typically structured and administered by a financial institution
that acts as the agent of the lenders participating in the floating rate loan. Floating rate loans may be acquired directly through the
agent, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another
lender's portion of the floating rate loan.
The Fund may also enter into, or acquire participation in, delayed funding
loans and revolving credit facilities. Delayed funding loans and revolving credit facilities are borrowings in which the Fund agrees to
make loans up to a maximum amount upon demand by the borrowing issuer for a specified term. A revolving credit facility differs from a
delayed funding loan in that as the borrowing issuer repays the loan, an amount equal to the repayment is again made available to the
borrowing issuer under the facility. The borrowing issuer may at any time borrow and repay amounts so long as, in the aggregate, at any
given time the amount borrowed does not exceed the maximum amount established by the loan agreement. Delayed funding loans and revolving
credit facilities usually provide for floating or variable rates of interest.
See "Bank Loan Risk" under "Portfolio Investment Risks"
for information regarding the risks associated with an investment in bank loans.
f. Security Transactions, Investment Income and Expenses:
Security transactions are recorded on the trade date. Realized and unrealized
gains/(losses) from security and foreign currency transactions are calculated on the identified cost basis. Interest income and expenses
are recorded on an accrual basis. Discounts and premiums on securities purchased are accreted or amortized on an effective yield basis
over the estimated lives of the respective securities.
g. Distributions:
The Fund has a managed distribution policy to pay distributions from
net investment income supplemented by net realized foreign exchange gains, net realized short-term capital gains, net realized long-term
capital gains and return of capital distributions, if necessary, on a monthly basis. The managed distribution policy is subject to regular
review by the Board. The Fund will also declare and pay distributions at least annually from net realized gains on investment transactions
and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance
with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign
currencies and loss deferrals.
Distributions to Series A Mandatory Redeemable
Preferred Shares (the "Series A MRPS") shareholders are accrued daily and paid quarterly based on an annual rate of
4.125%. The Fund may not pay distributions to its preferred shareholders unless (i) the pro forma asset coverage ratios for the
Series A MRPS, as calculated in accordance with the Fitch Ratings total and net overcollateralization tests per the 'A' rating
guidelines outlined in Fitch Rating's closed-end fund criteria, is in excess of 100%, and (ii) the Fund's asset coverage ratios for
the Series A MRPS, as calculated in accordance with the 1940 Act, is in excess of 225%. The character of distributions to Series A
MRPS shareholders made during the fiscal year may differ from their ultimate characterization for federal income tax purposes. For
tax purposes, the Fund's distributions to Series A MRPS shareholders for the six-month period ended April 30, 2022 were 100% net
investment income.
h. Federal Income Taxes:
For U.S. federal income purposes, the Fund includes a separately identifiable
unit called a Qualified Business Unit ("QBU") (see Internal Revenue Code of 1986, as amended ("IRC") section 987).
The Fund has operated with a QBU for U.S. federal income purposes since 1990. The
Aberdeen Asia-Pacific Income Fund, Inc. |
35 |
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
home office of the Fund is designated as the United States and of the
QBU is Australia with a functional currency of Australian dollar. The securities held within the Fund reside within either the QBU or
the home office. Australian dollar denominated securities within the Australian QBU generate capital gain/loss (which are translated for
U.S. federal income tax purposes into U.S. Dollars based on the weighted average exchange rate for the period) but not currency gain/loss.
If a non AUD denominated security were to sit in the AUD QBU and was sold, the sale would generate capital gain/loss as well as currency
gain/loss based on the currency exchange between the currency the security is denominated in and the Australian dollar.
Currency gain/loss related to currency exchange between the U.S. Dollar
and the QBU functional currency is generated when money is transferred from a QBU to the home office. The currency gain/loss would result
from the difference between the current exchange rate and the fiscal year to date average exchange rate until which profits are repatriated
to U.S. Dollar basis in the QBU (which is generally computed based on the currency exchange rates from when money was transferred into
such QBU and from gain/losses generated within such QBU based on the weighted average exchange rates for the periods such gain/loss was
recognized). Based on the QBU structure, there may be sizable differences in the currency gain/loss recognized for U.S. federal income
tax purposes and what is reported within the financial statements under GAAP. As of the Fund's fiscal year-end, the calculation of the
composition of distributions to shareholders is finalized and reported in the Fund's annual report to shareholders.
The Fund intends to continue to qualify as a "regulated investment
company" by complying with the provisions available to certain investment companies, as defined in Subchapter M of the IRC, and to
make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all federal income taxes.
Therefore, no federal income tax provision is required. The Fund recognizes the tax benefits of uncertain tax positions only where the
position is "more likely than not" to be sustained assuming examination by tax authorities. Management of the Fund has concluded
that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities
can examine previously filed tax returns, the Fund's U.S. federal and state tax returns for each of the most recent four fiscal years
up to the most recent fiscal year ended October 31, 2021 are subject to such review.
i. Foreign Withholding Tax:
Dividend and interest income from non-U.S. sources received by the Fund
are generally subject to non-U.S. withholding taxes. In addition, the Fund may be subject to capital gains tax in certain countries in
which it invests. The above taxes may be reduced or eliminated under
the terms of applicable U.S. income tax treaties with some of these countries. The Fund accrues such taxes when the related income is
earned.
In addition, when the Fund sells securities within certain countries
in which it invests, the capital gains realized may be subject to tax. Based on these market requirements and as required under GAAP,
the Fund accrues deferred capital gains tax on securities currently held that have unrealized appreciation within these countries. The
amount of deferred capital gains tax accrued, if any, is reported on the Statement of Assets and Liabilities.
j. Cash Flow Information:
The Fund invests in securities and distributes dividends from net investment
income and net realized gains on investment and currency transactions which are paid in cash or are reinvested at the discretion of shareholders.
These activities are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments
is presented in the Statement of Cash Flows. Cash includes domestic and foreign currency as well as cash in segregated accounts for financial
futures, swaps, and forward contracts which has been designated as collateral.
3. Agreements and Transactions with Affiliates
a. Investment Manager, Investment Sub-Adviser, and Fund Administration:
abrdn Asia Limited ("abrdn Asia" or the "Investment Manager"),
formerly known as Aberdeen Standard Investments (Asia) Limited, serves as investment manager to the Fund, pursuant to a management agreement.
Aberdeen Asset Managers Limited ("AAML" or the "Sub-Adviser") serves as the sub-adviser pursuant to a sub-advisory
agreement with the Investment Manager. The Investment Manager and the Sub-Adviser (collectively, the "Advisers") are wholly-owned
indirect subsidiaries of abrdn plc, formerly known as Standard Life Aberdeen plc. In rendering advisory services, the Advisers may use
the resources of investment advisor subsidiaries of abrdn plc. These affiliates have entered into procedures pursuant to which investment
professionals from affiliates may render portfolio management and research services as associated persons of the Advisers.
The Investment Manager manages the Fund's investments and makes investment
decisions on behalf of the Fund including the selection of and the placement of orders with brokers and dealers to execute portfolio transactions
on behalf of the Fund. The Sub-Adviser manages the portion of the Fund's assets that the Investment Manager allocates to it. The Sub-Adviser
is paid by the Investment Manager, not the Fund.
36 |
Aberdeen Asia-Pacific Income Fund, Inc. |
|
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
The management agreement provides the Investment Manager with a fee,
payable monthly by the Fund, at the following annual rates: 0.65% of the Fund's average weekly Managed Assets up to $200 million, 0.60%
of Managed Assets between $200 million and $500 million, 0.55% of Managed Assets between $500 million and $900 million, 0.50% of Managed
Assets between $900 million and $1.75 billion and 0.45% of Managed Assets in excess of $1.75 billion. Managed Assets is defined in the
management agreement to mean total assets of the Fund, including any form of investment leverage, minus all accrued expenses incurred
in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through
(i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities),
(ii) the issuance of preferred stock or other similar preference securities, (iii) the reinvestment of collateral received for securities
loaned in accordance with the Fund's investment objectives and policies, and/or (iv) any other means.
For the six-month period ended April 30, 2022, abrdn Asia earned $4,161,083
from the Fund for investment management fees.
abrdn, Inc. (formerly, known as Aberdeen Standard Investments, Inc.),
an affiliate of the Investment Manager and Sub-Adviser, is the Fund's Administrator pursuant to an agreement under which ASII receives
a fee, payable monthly by the Fund, at an annual fee rate of 0.125% of the Fund's average weekly Managed Assets up to $1 billion, 0.10%
of the Fund's average weekly Managed Assets between $1 billion and $2 billion, and 0.075% of the Fund's average weekly Managed Assets
in excess of $2 billion. For the six-months ended April 30, 2022, ASII earned $876,847 from the Fund for administration fees.
b. Investor Relations:
Under the terms of the Investor Relations Services Agreement, abrdn Inc.
provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by abrdn Asia
or its affiliates as part of an Investor Relations Program. Under the Investor Relations Services Agreement, the Fund owes a portion of
the fees related to the Investor Relations Program (the "Fund's Portion"). However, investor relations services fees are limited
by abrdn Inc. so that the Fund will only pay up to an annual rate of 0.05% of the Fund's average weekly net assets. Any difference between
the capped rate of 0.05% of the Fund's average weekly net assets and the Fund's Portion is paid for by abrdn Inc.
Pursuant to the terms of the Investor Relations Services Agreement, abrdn
Inc. (or third parties hired by abrdn Inc.), among other things, provides objective and timely information to stockholders based on publicly
available information; provides information efficiently through the use of technology while offering stockholders immediate access to
knowledgeable investor relations representatives; develops and maintains effective communications with investment professionals from a
wide variety of firms; creates and maintains investor relations communication materials such as fund manager interviews, films and webcasts,
publishes white papers, magazine articles and other relevant materials discussing the Fund's investment results, portfolio positioning
and outlook; develops and maintains effective communications with large institutional shareholders; responds to specific shareholder questions;
and reports activities and results to the Board and management detailing insight into general shareholder sentiment.
During the six-months ended April 30, 2022, the Fund incurred investor
relations fees of approximately $128,796. For the six-months ended April 30, 2022, abrdn Inc. did not bear any portion of to the investor
relations fees for the Fund because the Fund's contribution was below 0.05% of the Fund's average weekly net assets on an annual basis.
4. Investment Transactions
Purchases and sales of investment securities (excluding short-term securities)
for the six-month period ended April 30, 2022, were $142,887,999 and $187,264,607, respectively.
5. Capital
The authorized capital of the Fund is 400 million shares of $0.01 par
value per share of common stock. During the six-month period ended April 30, 2022, the Fund repurchased no shares pursuant to its Open
Market Repurchase Program, see Note 6 for further information. As of April 30, 2022, there were 247,695,769 shares of common stock issued
and outstanding.
6. Open Market Repurchase Program
On March 1, 2001, the Board approved a stock repurchase
program. The Board amended the program on December 12, 2007. The stock repurchase program allows the Fund to repurchase up to 10% of
its outstanding common stock in the open market during any 12-month period. The Fund reports repurchase activity on the Fund's website
on a monthly basis.
Aberdeen Asia-Pacific Income
Fund, Inc. |
37 |
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
7. Preferred Shares
At April 30, 2022, the Fund had 2,000,000 shares of Series A MRPS, rated
'A' by Fitch ratings, outstanding with an aggregate liquidation preference of $50,000,000 ($25 per share). The following table shows the
mandatory redemption date, annual fixed rate, aggregate liquidation preference and estimated fair value of the Series A MRPS at April
30, 2022.
Mandatory
Redemption
Date |
Annual
Fixed Rate |
Aggregate
Liquidation
Preference |
Estimated
Fair Value |
June
27, 2023 |
4.125% |
$50,000,000 |
$50,009,592 |
Holders of the Series A MRPS are entitled to receive quarterly cumulative
cash dividend payments on the first business day following each calendar quarter at an annual fixed rate of 4.125% until maturity. The
Series A MRPS were issued in private placement offerings to institutional investors and are not listed on any exchange or automated quotation
system. Distributions are accrued daily and paid quarterly and are presented in the Statement of Assets and Liabilities as a dividend
payable to preferred shareholders. For the six-month period ended April 30, 2022, the Fund paid $1,036,980 in distributions to preferred
shareholders.
The Series A MRPS rank senior to all of the Fund's outstanding shares
of common stock and on a parity with shares of any other series of preferred stock as to the payment of dividends to which the shares
are entitled and the distribution of assets upon dissolution, liquidation or winding up of the affairs of the Fund.
The estimated fair value of Series A MRPS was calculated, for disclosure
purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, plus the
spread between the U.S. insurance and financial debt rate and the U.S. Treasury rate plus a market spread for the issuance of preferred
shares.
The Series A MRPS are redeemable in certain circumstances at the option
of the Fund. The Series A MRPS are also subject to mandatory redemption, unless otherwise prohibited by the 1940 Act, if the Fund fails
to maintain (1) asset coverage, as determined in accordance with Section 18(h) of the 1940 Act, of at least 225%, with respect to all
outstanding preferred stock, as of the last day of any month or (2) eligible assets with an aggregate agency discounted value at least
equal to the basic maintenance amount as provided in the Fund's rating agency guidelines. As of April 30, 2022, the Fund was in compliance
with the asset coverage and basic maintenance requirements of the Series A MRPS.
Except for matters which do not require the vote of the holders of the
Series A MRPS under the 1940 Act and except as otherwise provided
in the Fund's Charter or Bylaws, or as otherwise required by applicable
law, holders of the Series A MRPS have one vote per share and generally vote together with holders of common stock as a single class on
all matters submitted to the Fund's stockholders. The holders of the Series A MRPS, voting separately as a single class, have the right
to elect at least two directors of the Fund.
8. Senior Secured Notes
At April 30, 2022, the Fund had $350,000,000 in aggregate principal amount
of senior secured notes rated 'A' by Fitch Ratings outstanding ($100,000,000 in 3.69% Series B Senior Secured Notes due June 12, 2023,
$50,000,000 in 3.87% Series C Senior Secured Notes due February 8, 2032, $100,000,000 in 3.70% Series D Senior Secured Notes due August
10, 2032 and $100,000,000 in 3.73% Series D Senior Secured Notes due June 19, 2034) (collectively, the "Notes"). The Notes are
secured obligations of the Fund and, upon liquidation, dissolution or winding up of the Fund, will rank senior to all unsecured and unsubordinated
indebtedness and senior to any common or preferred stock pari passu in priority and security with all other secured indebtedness. Holders
of the Notes are entitled to receive cash interest payments semi-annually until maturity. The Series B Notes, the Series C Notes, the
Series D Notes and the Series E Notes accrue interest at annual fixed rates of 3.69%, 3.87%, 3.70% and 3.73%, respectively.
The Notes were issued in private placement offerings to institutional
investors and are not listed on any exchange or automated quotation system.
The estimated fair value of each series of fixed-rate Notes was calculated,
for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity
date, plus either 1) the spread between the interest rate on recently issued debt and the U.S. Treasury rate with a similar maturity date
or 2) if there has not been a recent debt issuance, the spread between the AAA corporate finance debt rate and the U.S. Treasury rate
with an equivalent maturity date. The following table shows the maturity date, interest rate, notional/carrying amount and estimated fair
value for each series of Notes outstanding at April 30, 2022.
Series |
Maturity
Date |
Interest
Rate |
Notional/
Carrying
Amount |
Estimated
Fair Value |
Series B |
June 12,
2023 |
3.69% |
$100,000,000 |
$100,068,034 |
Series C |
February 8, 2032 |
3.87% |
$50,000,000 |
$48,062,206 |
Series D |
August 10, 2032 |
3.70% |
$100,000,000 |
$94,608,185 |
Series E |
June 19, 2034 |
3.73% |
$100,000,000 |
$94,142,423 |
38 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
9. Revolving Credit Facility
On August 4, 2021, the Fund executed an amendment and assignment of the
$100,000,000 senior secured revolving credit loan facility (the "Revolving Credit Facility") with a syndicate of banks with
The Bank of Nova Scotia, acting as administrative agent. On November 16, 2021, the Fund executed an amendment of the Credit Agreement
that increased the Revolving Credit Facility to $150,000,000. On November 22, 2021, the Fund drew down an additional $10 million and on
March 9 and 15, 2022 the Fund paid down $15,000,000 and $25,000,000, respectively. On April 30, 2022, the Fund had $70,000,000 outstanding
under the Revolving Credit Facility. Under the terms of the Revolving Credit Facility and the Agreement and applicable regulations, the
Fund is required to maintain certain asset coverage ratios for the amount of its outstanding borrowings.
For the six-month period ended April 30, 2022, the average interest rate
on the Revolving Credit Facility was 1.43% and the average balance of the Revolving Credit Facility was $98,784,530.
The Revolving Credit Facility has a term of one year and is not a perpetual
form of leverage; there can be no assurance that the Revolving Credit Facility will be available for renewal on acceptable terms, if at
all. Bank loan fees and expenses included in the Statement of Operations include fees for the renewal of the Revolving Credit Facility
as well as commitment fees for any portion of the loan facility not drawn upon at any time during the period.
10. Risks of Leveraged Capital Structure
The Fund may use leverage to the maximum extent permitted by the 1940
Act, which permits leverage to exceed 33 1/3% of the Fund's total assets (including the amount obtained through leverage) in certain market
conditions.
The amounts borrowed under the Revolving Credit Facility and the Notes
and other funds obtained through various forms of leverage, including the Series A MRPS, may be invested to return higher rates than the
rates pursuant to which interests or dividends are paid under such forms of leverage. However, the cost of leverage could exceed the income
earned by the Fund on the proceeds of such leverage. To the extent that the Fund is unable to invest the proceeds from the use of leverage
in assets which pay interest at a rate which exceeds the rate paid on the leverage, the yield on the Fund's common stock will decrease.
In addition, in the event of a general market decline in the value of assets in which the Fund invests, the effect of that decline will
be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage.
The Fund's leveraged capital structure creates special risks not associated
with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the Revolving Credit Facility
and the Notes may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund and against the
net assets of the Fund in liquidation. The Fund is limited in its ability to declare dividends or other distributions under the terms
of the various forms of leverage. In the event of an event of default under the Revolving Credit Facility, the lenders have the right
to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not
cured, the lenders may be able to control the liquidation as well. In the event of an event of default under the Note Purchase Agreement,
the holders of the Notes have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of
the Fund). If there exists an event of default under the Securities Purchase Agreement that has not been cured, the holders of the Series
A MRPS have the right to cause the Fund's outstanding borrowings to be immediately due and payable and proceed to protect and enforce
their rights by an action at law, suit in equity or other appropriate proceeding. A liquidation of the Fund's collateral assets in an
event of default, or a voluntary paydown of the Revolving Credit Facility, Series A MRPS or the Notes in order to avoid an event of default,
would typically involve administrative expenses and sometimes penalties. Additionally, such liquidations often involve selling off of
portions of the Fund's assets at inopportune times which can result in losses when markets are unfavorable.
Each of the Revolving Credit Facility Agreement, the Note Purchase Agreement
or the Securities Purchase Agreement relating to the Series A MRPS includes usual and customary covenants for the applicable type of transaction.
These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such
as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede
the Investment Manager or Sub-Adviser from fully managing the Fund's portfolio in accordance with the Fund's investment objective and
policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of any and/or
all of the forms of leverage. As of April 30, 2022, the Fund was in compliance with all covenants under the agreements relating to the
various forms of leverage.
During the six-months ended April 30, 2022, the Fund incurred fees of
approximately $312,963 for the Revolving Credit Facility and Notes.
Aberdeen Asia-Pacific Income
Fund, Inc. |
39 |
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
11. Portfolio Investment Risks
a. Credit and Market Risk:
A debt instrument's price depends, in part, on the credit quality of
the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the
issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory,
geopolitical, or other conditions. Funds that invest in high yield and emerging market instruments are subject to certain additional credit
and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit risk. The
Fund's investments in securities rated below investment grade typically involve risks not associated with higher rated securities including,
among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility,
and less liquid secondary market trading.
b. Interest Rate Risk:
The prices of fixed income securities respond to economic developments,
particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments.
Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated
securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average
maturity or duration of these securities affects risk.
The Fund may be subject to a greater risk of rising interest rates due
to the current interest rate environment and the effect of potential government fiscal policy initiatives and resulting market reaction
to those initiatives.
c. Risks Associated with Foreign Securities and Currencies:
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments,
and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain
countries, there is the possibility of expropriation of assets, confiscatory taxation, and political or social instability or diplomatic
developments, which could adversely affect investments in those countries. Foreign securities may also be harder to price than U.S. securities.
Certain countries also may impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant
national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility
with respect to securities of issuers from developing countries.
The value of foreign currencies relative to the U.S. Dollar fluctuates
in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency
versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the
Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Investment Manager are unsuccessful.
Russia/Ukraine Risk. In February 2022, Russia commenced a military
attack on Ukraine. The outbreak of hostilities between the two countries and the threat of wider spread hostilities could have a severe
adverse effect on the region and global economies, including significant negative impacts on the markets for certain securities and commodities,
such as oil and natural gas. In addition, sanctions imposed on Russia by the United States and other countries, and any sanctions imposed
in the future, could have a significant adverse impact on the Russian economy and related markets. The price and liquidity of investments
may fluctuate widely as a result of the conflict and related events. How long the armed conflict and related events will last cannot be
predicted. These tensions and any related events could have a significant impact on Fund performance and the value of the Funds' investments.
d. Focus Risk:
The Fund may have elements of risk not typically associated with investments
in the United States due to focused investments in a limited number of countries or regions subject to foreign securities or currency
risks. Such focused investments may subject the Fund to additional risks resulting from political or economic conditions in such countries
or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their
markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
e. Risks Associated with Mortgage-backed Securities:
The value of mortgage-backed securities can fall if the owners of the
underlying mortgages default or pay off their mortgages sooner than expected, which could happen when interest rates fall.
f. High-Yield Bonds and Other Lower-Rated Securities Risk:
The Fund's investments in high-yield bonds (commonly referred to as "junk
bonds") and other lower-rated securities will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative
and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than
issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than
40 |
Aberdeen Asia-Pacific Income Fund, Inc. |
|
Notes
to Financial Statements (unaudited) (continued)
April 30, 2022
investment-grade debt securities and may be difficult to price or sell,
particularly in times of negative sentiment toward high-yield securities.
g. Bank Loan Risk:
There are a number of risks associated with an investment in bank loans
including credit risk, interest rate risk, illiquid securities risk, and prepayment risk. There is also the possibility that the collateral
securing a loan, if any, may be difficult to liquidate or be insufficient to cover the amount owed under the loan. These risks could cause
the Fund to lose income or principal on a particular investment, which in turn could affect the Fund's returns. In addition, bank loans
may settle on a delayed basis, resulting in the proceeds from the sale of such loans not being readily available to make additional investments
or distributions. To the extent the extended settlement process gives rise to short-term liquidity needs, the Fund may hold additional
cash, sell investments or temporarily borrow from banks or other lenders.
h. LIBOR Risk:
Under the revolving credit facility, the Fund is charged interest on
amounts borrowed at a variable rate, which may be based on the London Interbank Offered Rate ("LIBOR") plus a spread. The Fund
may invest in certain debt securities, derivatives or other financial instruments that utilize LIBOR as a "benchmark" or "reference
rate" for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority ("FCA"), which
regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. However, subsequent announcements by the FCA, the
LIBOR administrator and other regulators indicate that it is possible that the most widely used LIBOR rates may continue until mid-2023.
It is anticipated that LIBOR ultimately will be discontinued or the regulator will announce that it is no longer sufficiently robust to
be representative of its underlying market around that time. Although
financial regulators and industry working groups have suggested alternative
reference rates, such as European Interbank Offered Rate ("EURIBOR"), Sterling Overnight Interbank Average Rate ("SONIA")
and Secured Overnight Financing Rate ("SOFR"), global consensus on alternative rates is lacking and the process for amending
existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference
rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market
for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund's performance and/or
net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions
in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased
volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers
that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting
the Fund's performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated
if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner.
12. Contingencies
In the normal course of business, the Fund may provide general indemnifications
pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future
claims that may be made against the Fund, and therefore, cannot be estimated; however, the Fund expects the risk of loss from such claims
to be remote.
13. Tax Information
The U.S. federal income tax basis of the Fund's investments (including
derivatives, if applicable) and the net unrealized depreciation as of April 30, 2022, were as follows:
Tax
Basis of Investments |
Appreciation |
Depreciation |
Net
Unrealized
Depreciation |
$1,486,286,625 |
$ 26,442,319 |
$ (169,868,809) |
$ (143,426,490) |
14. Recent Rulemaking
In October 2020, the Securities and Exchange Commission
("SEC") adopted new regulations governing the use of derivatives by registered investment companies. Rule 18f-4 will
impose limits on the amount of derivatives a fund could enter into, eliminate the asset segregation framework currently used by
funds to comply with Section 18 of the
1940 Act, and require funds whose use of derivatives is more than a limited specified
exposure to establish and maintain a derivatives risk management program and appoint a derivatives risk manager. Management is
currently finalizing the implementation of Rule 18f-4 to meet the August 19, 2022 compliance date.
Aberdeen Asia-Pacific Income Fund, Inc. |
41 |
Notes
to Financial Statements (unaudited) (concluded)
April 30, 2022
In
December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which establishes requirements for determining fair value in good faith
for purposes of the 1940 Act, including related oversight and reporting requirements. The rule also defines when market quotations are
"readily available" for purposes of the 1940 Act, the threshold for determining whether a fund must fair value a security.
The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations.
Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value
and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date
of September 8, 2022. Management is currently evaluating this guidance.
15.
Subsequent Events
Management
has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements
were issued. Based on this evaluation, no disclosures and/or adjustments were required to the financial statements as of April 30, 2022.
other than as described below.
On
May 10, 2022 and June 9, 2022, the Fund announced that it will pay on May 31, 2022 and June 30, 2022, respectively, a distribution of
U.S. $0.0275 per share to all shareholders of record as of May 20, 2022 and June 22, 2022, respectively.
On
May 10, 2022, the Fund sold its interest rate swap agreements with an aggregate notional amount of $70 million.
42 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Supplemental Information (unaudited)
Results of Annual Meeting of Shareholders
The
Annual Meeting of Shareholders was held on April 28, 2022. The description of the proposals and number of shares voted at the meeting
are as follows:
To
elect one Class I Director of the Fund, for a three-year term until the 2025 Annual Meeting of Stockholders and until such Director's
successor is duly elected and qualify:
|
Votes
For |
|
Votes
Against/Withheld |
|
Votes
Abstained |
|
Stephen
Bird |
160,599,800 |
|
4,814,607 |
|
2,266,926 |
|
To
consider the continuation of the terms of two Directors under the Fund's Corporate Governance Policies:
|
Votes
For |
|
Votes
Against/Withheld |
|
Votes
Abstained |
|
P.
Gerald Malone (Class II – 3 year term ending 2023) |
151,680,181 |
|
13,633,654 |
|
2,367,498 |
|
William
Potter (Preferred – 3 year term ending 2024) |
151,370,248 |
|
13,878,494 |
|
2,432,591 |
|
For
Preferred Shares Only: To elect one preferred share Director of the Fund, for a three-year term until the 2025 Annual Meeting of Stockholders
and until such Director's successor is duly elected and qualify:
|
Votes
For |
|
Votes
Against/Withheld |
|
Votes
Abstained |
|
Moritz
Sell |
2,000,000 |
|
0 |
|
0 |
|
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
43 |
Dividend Reinvestment and Optional Cash
Purchase Plan (unaudited)
The
Fund intends to distribute to stockholders substantially all of its net investment income and to distribute any net realized capital
gains at least annually. Net investment income for this purpose is income other than net realized long-term and short-term capital gains
net of expenses. Pursuant to the Dividend Reinvestment and Optional Cash Purchase Plan (the "Plan"), stockholders whose shares
of common stock are registered in their own names will be deemed to have elected to have all distributions automatically reinvested by
Computershare Trust Company N.A. (the "Plan Agent") in the Fund shares pursuant to the Plan, unless such stockholders elect
to receive distributions in cash. Stockholders who elect to receive distributions in cash will receive such distributions paid by check
in U.S. Dollars mailed directly to the stockholder by the Plan Agent, as dividend paying agent. In the case of stockholders such as banks,
brokers or nominees that hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the
number of shares certified from time to time by the stockholders as representing the total amount registered in such stockholders' names
and held for the account of beneficial owners that have not elected to receive distributions in cash. Investors that own shares registered
in the name of a bank, broker or other nominee should consult with such nominee as to participation in the Plan through such nominee
and may be required to have their shares registered in their own names in order to participate in the Plan. Please note that the Fund
does not issue certificates so all shares will be registered in book entry form. The Plan Agent serves as agent for the stockholders
in administering the Plan. If the Directors of the Fund declare an income dividend or a capital gains distribution payable either in
the Fund's common stock or in cash, nonparticipants in the Plan will receive cash and participants in the Plan will receive common stock,
to be issued by the Fund or purchased by the Plan Agent in the open market, as provided below. If the market price per share (plus expected
per share fees) on the valuation date equals or exceeds NAV per share on that date, the Fund will issue new shares to participants at
NAV; provided, however, that if the NAV is less than 95% of the market price on the valuation date, then such shares will be issued at
95% of the market price. The valuation date will be the payable date for such distribution or dividend or, if that date is not a trading
day on the New York Stock Exchange, the immediately preceding trading date. If NAV exceeds the market price of Fund shares at such time,
or if the Fund should declare an income dividend or capital gains distribution payable only in cash, the Plan Agent will, as agent for
the participants, buy Fund shares in the open market, on the New York Stock Exchange or elsewhere, for the participants' accounts on,
or shortly after, the payment date. If, before the Plan Agent has completed its purchases, the market price exceeds the NAV of a Fund
share, the average per share purchase price paid by the Plan Agent may exceed the NAV of the Fund's shares,
resulting
in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund on the dividend payment date.
Because of the foregoing difficulty with respect to open-market purchases, the Plan provides that if the Plan Agent is unable to invest
the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premium during
the purchase period, the Plan Agent will cease making open-market purchases and will receive the uninvested portion of the dividend amount
in newly issued shares at the close of business on the last purchase date.
Participants
have the option of making additional cash payments of a minimum of $50 per investment (by check, one-time online bank debit or recurring
automatic monthly ACH debit) to the Plan Agent for investment in the Fund's common stock, with an annual maximum contribution of $250,000.
The Plan Agent will wait up to three business days after receipt of a check or electronic funds transfer to ensure it receives good funds.
Following confirmation of receipt of good funds, the Plan Agent will use all such funds received from participants to purchase Fund shares
in the open market on the 25th day of each month or the next trading day if the 25th is not a trading day.
If
the participant sets up recurring automatic monthly ACH debits, funds will be withdrawn from his or her U.S. bank account on the 20th
of each month or the next business day if the 20th is not a banking business day and invested on the next investment
date. The Plan Agent maintains all stockholder accounts in the Plan and furnishes written confirmations of all transactions in an account,
including information needed by stockholders for personal and tax records. Shares in the account of each Plan participant will be held
by the Plan Agent in the name of the participant, and each stockholder's proxy will include those shares purchased pursuant to the Plan.
There will be no brokerage charges with respect to common shares issued directly by the Fund. However, each participant will pay a per
share fee of $0.02 incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends,
capital gains distributions and voluntary cash payments made by the participant. Per share fees include any applicable brokerage commissions
the Plan Agent is required to pay.
Participants
also have the option of selling their shares through the Plan. The Plan supports two types of sales orders. Batch order sales are submitted
on each market day and will be grouped with other sale requests to be sold. The price will be the average sale price obtained by Computershare's
broker, net of fees, for each batch order and will be sold generally within 2 business days of the request during regular open market
hours. Please note that all written sales requests are always processed by Batch Order. ($10 and $0.12 per share). Market
44 |
Aberdeen
Asia-Pacific Income Fund, Inc. |
|
Dividend
Reinvestment and Optional Cash Purchase Plan (unaudited)
(concluded)
Order sales will sell at the next available trade. The shares are sold
real time when they hit the market, however an available trade must be presented to complete this transaction. Market Order sales may
only be requested by phone at 1-800-647-0584 or using Investor Center through www.computershare.com/buyaberdeen. ($25 and $0.12 per share).
The receipt of dividends and distributions under the Plan will not relieve
participants of any income tax that may be payable on such dividends or distributions. The Fund or the Plan Agent may terminate the Plan
as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to notice of the termination sent to
members of the Plan at least 30 days prior to the record date for such
dividend or distribution. The Plan also may be amended by the Fund or the Plan Agent, but (except when necessary or appropriate to comply
with applicable law or the rules or policies of the Securities and Exchange Commission or any other regulatory authority) only by mailing
a written notice at least 30 days' prior to the effective date to the participants in the Plan. All correspondence concerning the Plan
should be directed to the Plan Agent by phone at 1-800-647-0584, using Investor Center through www.computershare.com/buyaberdeen or in
writing to Computershare Trust Company N.A., P.O. Box 505000, Louisville, KY 40233-5000.
|
Aberdeen
Asia-Pacific Income Fund, Inc. |
45 |
Corporate Information
Directors
Radhika
Ajmera
Stephen Bird
P. Gerald Malone, Chairman
William J. Potter
Moritz Sell
Investment
Manager
abrdn
Asia Limited
21 Church Street
#01-01 Capital Square Two
Singapore 049480
Investment
Sub-Adviser
Aberdeen
Asset Managers Limited
Bow Bells House, 1 Bread Street
London United Kingdom
EC4M 9HH
Administrator
abrdn
Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
Custodian
State
Street Bank and Trust Company
1 Lincoln Street
Boston, MA 02111
Transfer
Agent
Computershare
Trust Company N.A.
P.O. Box 505000
Louisville, KY 40233
Independent
Registered Public Accounting Firm
KPMG
LLP
1601 Market Street
Philadelphia, PA 19103
Legal
Counsel
Dechert
LLP
1900 K Street, N.W.
Washington, DC 20006
Investor
Relations
abrdn
Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abrdn.com
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The
accompanying Financial Statements, as of April 30, 2022, were not audited and accordingly, no opinion is expressed thereon.
Notice
is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may purchase, from
time to time, shares of its common stock in the open market.
The
common shares of Aberdeen Asia-Pacific Income Fund, Inc. are traded on the NYSE American equities exchange under the symbol "FAX".
Information about the Fund's net asset value and market price is available at www.aberdeenfax.com.
This
report, including the financial information herein, is transmitted to the shareholders of Aberdeen Asia-Pacific Income Fund, Inc. for
their general information only. It does not have regard to the specific investment objectives, financial situation and the particular
needs of any specific person. Past performance is no guarantee of future returns.
FAX SEMI-ANNUAL
(b) Not applicable.