Washington, D.C. 20549
The Registrant is filing this amendment to its Form N-CSR for the period ended September 30, 2021, originally filed with
the Securities and Exchange Commission on December 6, 2021 (Accession Number 0001104659-21-146692). The purpose of this amendment is to
file as an additional exhibit the copies of the Registrant's notices to stockholders, which accompanied distributions paid, pursuant to
the Registrant's Managed Distribution Policy since the Registrant's last filed N-CSR as required by the terms of the Registrant's SEC
exemptive order. Except as set forth above (and the dates included on the signature page and the certifications required by Rule 30a-2(a)
and Rule 30a-2(b)), this amendment does not amend, update or change any other items or disclosures found in the original Form N-CSR filing.
Item 1. Reports to Stockholders.
Stable Distribution Plan (unaudited)
The Board of Trustees of the Aberdeen Standard Global Infrastructure
Income Fund (the "Fund") has authorized a Stable Distribution Plan of paying monthly distributions at an annualized rate of
6.5% on the initial public offering price of $20.00 for the 12 months ending September 30, 2021. The Fund's current monthly distribution
is set at a rate of $0.1083 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 exemptive order. The Fund's Board of Trustees may amend or terminate the Stable Distribution Plan 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 Stable
Distribution Plan. 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 Stable Distribution Plan.
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, September 30. 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.
The distributions for the fiscal year ended September 30, 2021 consisted
of 93% ordinary income and 7% net long-term realized gain.
In January 2022, 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 2021 calendar year.
Aberdeen Standard
Global Infrastructure Income Fund
Letter to Shareholders (unaudited)
Dear Shareholder,
We present this
Annual Report which covers the activities of Aberdeen Standard Global Infrastructure Income Fund (the "Fund") for the fiscal
year ended September 30, 2021. The Fund's principal investment objective is to seek to provide a high level of total return with an emphasis
on current income. The Fund seeks to achieve its investment objective by investing in a portfolio of income-producing public and private
infrastructure equity investments from around the world.
Total Investment Return1
For the fiscal year ended September 30, 2021, the total return to shareholders
of the Fund based on the net asset value and market price, respectively, compared to the Fund's primary benchmark are as follows:
NAV2,3
|
22.4%
|
|
Market
Price2
|
21.5%
|
|
S&P
Global Infrastructure
|
22.1%
|
|
Index4
|
|
|
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.
For more information about Fund performance, please see the Report of the Investment Adviser (page 3) and Total Investment Returns (page
5).
NAV, Market Price and Premium(+)/Discount(-)
|
NAV
|
|
Closing
Market
Price
|
|
Premium(+)/
Discount (-)
|
|
9/30/2021
|
$22.27
|
|
$19.93
|
|
-10.5%
|
|
9/30/2020
|
$19.43
|
|
$17.51
|
|
-9.9%
|
|
Throughout the period ended September 30, 2021, the Fund's NAV was within
a range of $19.03 to $23.87 and the Fund's market price traded within a range of $16.23 to $22.35 for the same time period. Throughout
the period ended September 30, 2021, the Fund's shares traded within a range of a premium(+)/discount(-) of -5.8% to -18.8%.
Stable Distribution Policy
The Fund has a stable distribution policy of paying a monthly distribution
at an annualized rate of 6.5% on the initial public offering
price of $20.00
for the 12 months ending September 30, 2021. The distributions will be made from current income, supplemented by realized capital gains
and, to the extent necessary, paid-in capital, which is a nontaxable return of capital.
Distributions to
common shareholders for the fiscal year ended September 30, 2021 totaled $1.30 per share. Based on the market price of $19.93 on September
30, 2021, the annualized distribution rate was 6.5%. Based on the NAV of $22.27 on September 30, 2021, the annualized distribution rate
was 5.9%.
Effective for the
2022 fiscal year, the Board approved a Stable Distribution Plan that the Fund would pay a fixed monthly distribution of US$0.1083, commencing
with the distribution paid on October 29, 2021. On October 11, 2021 and November 9, 2021, the Fund announced that it will pay on October
29, 2021 and November 30, 2021, respectively, a distribution of U.S. $0.1083 per share to all shareholders of record as of October 22,
2021 and November 19, 2021, respectively.
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.
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.
|
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 net asset value
("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.
|
|
4
|
The S&P Global Infrastructure Index is an unmanaged index
considered representative of stock markets of developed and emerging markets. Indexes are unmanaged and have been provided for comparison
purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
1
|
Letter to Shareholders (unaudited)
(concluded)
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 semi-annual 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 http://www.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 will be available by August 31 of the relevant year: (1) without charge, upon request,
by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC's website at http://www.sec.gov.
COVID-19
Beginning in the first quarter of 2020, the illness caused by a novel
coronavirus, COVID-19, has resulted in a global pandemic and major disruption to economies and markets around the world, including the
United States. Financial markets have experienced extreme volatility and severe losses. Some sectors of the economy and individual issuers
have experienced particularly large losses. 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, 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.
Risk Considerations
Past performance is not an indication of future results.
International investing entails special risk considerations, including
currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally
heightened for emerging market investments. Equity stocks of small and
mid-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies. Dividends are not
guaranteed and a company's future ability to pay dividends may be limited. The use of leverage will also increase market exposure and
magnify risk.
Infrastructure-related issuers may be subject to a variety of factors
that may adversely affect their business or operations, including high interest costs in connection with capital construction programs,
high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased
competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy
conservation policies and other factors.
The Fund's investments in private companies may be subject to higher
risk than investments in securities of public companies.
Investor Relations Information
As part of abrdn's Standard's commitment to shareholders, we invite you
to visit the Fund on the web at www.aberdeenasgi.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance
information, and other Fund literature.
Enroll in abrdn's Standard's email services and be among the first to
receive the latest closed-end fund news, announcements, videos and other information. In addition, electronic versions of important Fund
documents including annual reports, semi-annual reports, prospectuses, and proxy statements are available at https://www.abrdn.com/en-us/cefinvestorcenter/fund-centre/closed-end-funds.
Contact Us:
|
•
|
Visit: https://www.abrdn.com/en-us/cefinvestorcenter/contact-us/preferences;
|
|
•
|
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.
2
|
Aberdeen Standard Global Infrastructure Income Fund
|
|
Report of the Investment Adviser (unaudited)
Market/economic review
Stock markets globally rose significantly over the 12-month reporting
period ended September 30, 2021. COVID-19 was still the dominant factor at the beginning of the reporting period, although stock markets
had already begun their recovery from the lows of March 2020.
Supportive monetary and fiscal policy was prevalent over the period.
The U.S. Federal Reserve (Fed) maintained the federal funds rate at near 0% throughout the reporting period, while providing support through
its bond-buying program. Elsewhere, the European Central Bank (ECB) ramped up its original €1.35 trillion (US$1.57 trillion) stimulus
plan to €1.85 trillion (US$2.15 trillion) in December 2020. The U.S. Congress passed two additional stimulus packages during the
reporting period, with a cumulative total of roughly US$2.8 trillion. In August 2021, the U.S. Senate passed the US$1 trillion infrastructure
deal.
Global markets fell at the beginning of the reporting period, reversing
some recent gains. In November 2020, however, news of three major COVID-19 vaccines buoyed investor sentiment. This persisted through
to the end of 2020 due to the launch of vaccination programs, the approval of stimulus packages, and the UK and the European Union reaching
a Brexit trade deal.
Momentum stalled again in January and February 2021, as global bond markets
experienced a significant selloff, spurring worries that this could impact the fragile global recovery. The downturn in bond markets also
had a negative impact on equities. However, stock markets resumed their upward momentum, driven by economic optimism, vaccine rollouts,
central banks' continued accommodative monetary, and a strong corporate earnings reporting season. The MSCI World Index reached a record
high in August 2021, but sold off in September amid investors' growing concerns over inflation and possible interest-rate hikes from central
banks. Uneasiness about the global economy led to a selloff across most equity markets across the globe.
Fund performance review
Aberdeen Standard Global Infrastructure Income Fund returned 22.4% on
a net asset value basis for the 12-month reporting period ended September 30, 2021, marginally outperforming the 22.1% return of its benchmark,
the S&P Global Infrastructure Index. Fund performance was bolstered by overall positioning in the utilities sector and the exposure
to the communication services sector, which is not
represented in the benchmark index. The largest individual stock contributors
to the Fund's performance for the reporting period were Tower Bersama Infrastructure Tbk, an Indonesian telecommunication-tower provider,
and Travel Centers of America, an operator of full-service travel centers and truck stops in the U.S., along with the lack of exposure
to Iberdrola SA, a Spain-based global electric utility company.
Tower Bersama Infrastructure is one of the largest telecommunication
tower providers in Indonesia. The company is benefiting from favorable trends in the industry, including tower densification and tower
acquisitions. Telecommunication companies continue to invest in their networks, which benefits tower providers. Tower Bersama also completed
its IBST tower deal, resulting in the addition of 4,400 tenants. Travel Centers of America is the largest publicly traded full-service
truck stop and travel center company in the U.S. Its shares rallied sharply over the reporting period as the company's new chief executive
officer appears to be making progress toward its reorganization plan to improve profitability by growing revenues and margins. The company's
second quarter results significantly beat consensus estimates. The absence of a holding in Iberdrola SA, a constituent of the benchmark
S&P Global Infrastructure Index, benefited the Fund's relative performance for the reporting period as Iberdrola SA's shares sold
off after the Spanish government said it may implement a gas windfall tax.
An underweight allocation to the energy sector and stock selection in
the industrials sector weighed on Fund performance for the reporting period. The primary individual stock detractors from Fund performance
included the lack of exposure to Targa Resources Corp., Cheniere Energy Inc., and Oneok Inc. Targa Resources is a midstream1
company that has assets in the Permian basin. The company recently completed a large expansion project and has started to reduce debt.
Cheniere Energy Inc., exports liquid natural gas. The stock price rallied throughout the year as more liquefied natural gas (LNG) terminals2
came online. We believe that this should lead to a decrease in capital spending and higher free cash flow. Cheniere Energy also benefited
from wide international gas price spreads. Oneok, Inc. is a U.S.-based midstream oil service provider. The company benefited from rising
oil prices and its shares rallied along with the overall midstream energy market over the reporting period. Furthermore, Oneok's management
is focusing on deleveraging the company's balance sheet.
1
|
Midstream refers to one of the three major stages of oil and
gas industry operations. Midstream activities include the processing, storing, transporting and marketing of oil, natural gas, and natural
gas liquids.
|
|
|
2
|
A LNG terminal is a facility for managing the import and/or
export of liquefied natural gas.
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
3
|
Report of the Investment Adviser (unaudited)
(concluded)
We are pleased with the Fund's progress thus far in the private-investment
area. The Fund has formally closed four private investments, that in our view, offer strong near-term pipelines of distinctive opportunities.
The Fund's completed private investments comprise several underlying subsectors across renewable power, environmental infrastructure,
and water infrastructure and midstream energy. We believe that these deals are a strong complement to the Fund's portfolio of publicly
traded companies and will have a notable allocation in the Fund moving forward.
The monthly distribution reflects the Fund's current policy to provide
shareholders with a relatively stable cash flow per share. This policy did not have a material effect on the Fund's investment strategy
over the reporting period During the12-month period ended September 30, 2021, the distributions comprised dividends and short- and long-term
capital gains, and did not include a return of capital.
Outlook
Global stocks may be headed for a period of volatility as investors mull
conflicting signals. Developed western economies seem to be recovering at a steady clip as they emerge from the effects of the previous
Covid-19 wave. The resumption of business though, has met with supply side constraints, which have pushed raw material and product prices
higher, prompting key central banks to closely monitor inflationary pressures and consider appropriate tightening measures. Elsewhere,
while the coronavirus appears to be endemic, the accelerating pace of vaccine production and inoculations should help many countries achieve
herd immunity in the near future and assist in keeping their economies open.
Amid the sentiment-driven market conditions, we remain committed to our
fundamental analysis-based stock-picking strategies. This is supported by our proprietary research platform, currently staffed by an experienced
team that has successfully navigated many past crises. Consequently, we continue to seek attractively valued companies that, in our view,
have resilient, well-run businesses that are adapting well to the changing landscape, and are poised for the growth recovery, while actively
engaging with management to ensure robust corporate governance and environmental sustainability standards.
Looking ahead, we expect infrastructure spending
in the U.S. to increase under the administration of President Joe Biden. We believe that the Biden Administration's policies will be
supportive of
exchange-listed infrastructure companies, as there are both direct
and indirect beneficiaries in the Fund's investment universe. Additionally, we think that investor sentiment for renewables could remain
supported by government stimulus programs globally. For example, the European Union (EU) announced a new initiative, "Fit for 55%,"
that calls for the reduction of greenhouse gas emissions by 55% (versus 1990 levels) by 2030. This was an increase from the previous
reduction target of 40%.While "Fit for 55%" is just in the proposal stage and likely will be modified before the EU Parliament
and member states approve it, we feel that it could have a meaningful impact on infrastructure spending. Furthermore, following the 26th
Conference of the Parties (COP 26) global climate summit in Glasgow, Scotland, in November of 2021, focus is turning to the implementation
of the 2015 Paris Agreement. The long-term ambition of that agreement is to limit global warming to well within two degrees Celsius when
compared to pre-industrial levels in an effort to address climate change.
Aberdeen Standard Investments Inc.
Risk Considerations
Past performance is not an indication of future results. International
investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences
in accounting methods; these risks are generally heightened for emerging market investments. Equity stocks of small and mid-cap companies
carry greater risk, and more volatility than equity stocks of larger, more established companies. Dividends are not guaranteed and a company's
future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.
Infrastructure-related issuers may be subject to a variety of factors
that may adversely affect their business or operations, including high interest costs in connection with capital construction programs,
high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased
competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy
conservation policies and other factors.
The Fund's investments in private companies may be subject to higher
risk than investments in securities of public companies.
4
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Total Investment Returns (unaudited)
The following table summarizes the average annual Fund performance compared
to the Fund's benchmark for the 1-year and since inception periods ended September 30, 2021.
|
1
Year
|
Since
Inception 7/29/20
|
Net
Asset Value (NAV)
|
22.4%
|
15.9%
|
Market
Price
|
21.5%
|
5.4%
|
S&P
Global Infrastructure Index
|
22.1%
|
15.7%
|
Performance of a $10,000 Investment (as of September 30, 2021)
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.
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 sponsored by the Fund's transfer agent. 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 during the period and assumes reinvestment of dividends and
distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund's transfer agent. The Fund's
total investment return is based on the reported NAV on the financial reporting period ended September 30, 2021. 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.aberdeenasgi.com or by calling 800-522-5465.
The annualized net operating expense ratio based on the fiscal year
ended September 30, 2021, was 1.78%.
|
Aberdeen Standard Global Infrastructure Income Fund
|
5
|
Portfolio Summary (unaudited)
The following table summarizes the sector composition of the Fund's portfolio,
in S&P Global Inc.'s Global Industry Classification Standard ("GICS") Sectors, expressed as a percentage of net assets as
of September 30, 2021.
Sectors
|
|
As
a Percentage of Net Assets
|
|
Industrials
|
|
32.7%
|
(1)
|
Utilities
|
|
28.3%
|
(1)
|
Communication
Services
|
|
16.5%
|
|
Energy
|
|
7.7%
|
|
Private
Equity
|
|
6.1%
|
|
Real
Estate
|
|
4.8%
|
|
Materials
|
|
1.8%
|
|
Consumer
Discretionary
|
|
1.1%
|
|
Information
Technology
|
|
0.7%
|
|
Short-Term
Investment
|
|
0.3%
|
|
|
|
100.0%
|
|
|
(1)
|
The sectors, as classified by GICS, are comprised of several
industries. As of September 30, 2021, the Fund did not have more than 25% of its assets invested in any industry. As of September 30,
2021, the Fund's holdings in the Industrials sector were allocated to four industries: Transportation Infrastructure (15.5%), Road &
Rail (8.8%), Construction & Engineering (8.0%), Commercial Services & Supplies (0.4%). As of September 30, 2021, the Fund's holdings
in the Utilities sector were allocated to five industries: Multi-Utilities (10.6%), Electric Utilities (8.9%), Independent Power &
Renewable Electricity Producers (7.9%), Water Utilities (0.9%).
|
The following chart summarizes the composition of the Fund's portfolio
by geographic classification expressed as a percentage of net assets as of September 30, 2021:
Countries
|
As
a Percentage of Net Assets
|
|
United
States
|
|
39.4%
|
|
Spain
|
|
10.5%
|
|
France
|
|
8.4%
|
|
Brazil
|
|
6.2%
|
|
Italy
|
|
5.8%
|
|
United
Kingdom
|
|
4.1%
|
|
China
|
|
3.9%
|
|
Canada
|
|
3.9%
|
|
Germany
|
|
3.8%
|
|
Indonesia
|
|
2.4%
|
|
Philippines
|
|
2.0%
|
|
Argentina
|
|
2.0%
|
|
Mexico
|
|
1.6%
|
|
Luxembourg
|
|
1.5%
|
|
Malaysia
|
|
1.3%
|
|
Norway
|
|
1.3%
|
|
Netherlands
|
|
1.0%
|
|
Japan
|
|
0.9%
|
|
|
|
100.0%
|
|
6
|
Aberdeen Standard Global Infrastructure Income
Fund
|
Top Ten Equity Holdings (unaudited)
The following were the Fund's top ten holdings as of September 30, 2021:
Name
of Security
|
As
a Percentage of Net Assets
|
|
Ferrovial
SA
|
|
3.1%
|
|
Cellnex
Telecom SA
|
|
3.1%
|
|
CCR
SA
|
|
2.8%
|
|
Enbridge,
Inc.
|
|
2.6%
|
|
Cresta
Highline Co-Invest Fund I (through Aberdeen Standard Global Infrastructure Fund BL, LLC)
|
|
2.6%
|
|
Williams
Cos., Inc. (The)
|
|
2.5%
|
|
Kinder
Morgan, Inc.
|
|
2.5%
|
|
Crown
Castle International Corp., REIT
|
|
2.5%
|
|
RWE
AG
|
|
2.4%
|
|
EDP
Renovaveis SA
|
|
2.4%
|
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
7
|
Consolidated Portfolio of Investments
September 30, 2021
|
|
Shares
or
Principal
Amount
|
|
Value
|
|
LONG-TERM
INVESTMENTS—99.7%
|
|
|
|
|
|
|
COMMON
STOCKS—93.6%
|
|
|
|
|
|
|
ARGENTINA—2.0%
|
|
|
|
|
|
|
Industrials—1.1%
|
|
|
|
|
|
|
|
Corp.
America Airports SA(a)
|
|
|
364,800
|
|
$
|
2,053,824
|
|
Materials—0.9%
|
|
|
|
|
|
|
|
Loma
Negra Cia Industrial Argentina SA, ADR
|
|
|
251,200
|
|
|
1,791,056
|
|
BRAZIL—6.2%
|
|
|
|
|
|
|
|
Communication
Services—1.0%
|
|
|
|
|
|
|
|
Telefonica
Brasil SA, ADR
|
|
|
261,900
|
|
|
2,032,344
|
|
Industrials—4.3%
|
|
|
|
|
|
|
|
CCR
SA
|
|
|
2,534,100
|
|
|
5,444,424
|
|
Rumo
SA(a)
|
|
|
969,000
|
|
|
2,987,561
|
|
|
|
|
|
|
|
8,431,985
|
|
Utilities—0.9%
|
|
|
|
|
|
|
|
Omega
Geracao SA(a)
|
|
|
290,000
|
|
|
1,708,341
|
|
CANADA—3.9%
|
|
|
|
|
|
|
|
Energy—2.6%
|
|
|
|
|
|
|
|
Enbridge,
Inc.
|
|
|
129,400
|
|
|
5,155,159
|
|
Industrials—1.3%
|
|
|
|
|
|
|
|
Canadian
Pacific Railway Ltd.
|
|
|
39,200
|
|
|
2,550,744
|
|
CHINA—3.9%
|
|
|
|
|
|
|
|
Industrials—2.3%
|
|
|
|
|
|
|
|
COSCO
SHIPPING Ports Ltd.
|
|
|
2,778,100
|
|
|
2,399,375
|
|
Zhejiang
Expressway Co. Ltd., Class H
|
|
|
2,532,000
|
|
|
2,088,140
|
|
|
|
|
|
|
|
4,487,515
|
|
Information
Technology—0.7%
|
|
|
|
|
|
|
|
GDS
Holdings Ltd., ADR(a)
|
|
|
24,600
|
|
|
1,392,606
|
|
Utilities—0.9%
|
|
|
|
|
|
|
|
Beijing
Enterprises Water Group Ltd.
|
|
|
4,724,000
|
|
|
1,849,165
|
|
FRANCE—8.4%
|
|
|
|
|
|
|
|
Industrials—5.1%
|
|
|
|
|
|
|
|
Eiffage
SA
|
|
|
31,900
|
|
|
3,224,033
|
|
Getlink
SE
|
|
|
133,500
|
|
|
2,085,488
|
|
Vinci
SA
|
|
|
45,300
|
|
|
4,711,599
|
|
|
|
|
|
|
|
10,021,120
|
|
Utilities—3.3%
|
|
|
|
|
|
|
|
Engie
SA
|
|
|
200,600
|
|
|
2,624,488
|
|
Veolia
Environnement SA
|
|
|
130,700
|
|
|
3,993,641
|
|
|
|
|
|
|
|
6,618,129
|
|
8
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Consolidated Portfolio of Investments
(continued)
September 30, 2021
|
|
Shares
or
Principal
Amount
|
|
Value
|
|
LONG-TERM
INVESTMENTS (continued)
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
|
|
|
|
|
GERMANY—3.8%
|
|
|
|
|
|
|
Communication
Services—1.4%
|
|
|
|
|
|
|
Vantage
Towers AG
|
|
|
80,265
|
|
|
$ 2,726,026
|
|
Utilities—2.4%
|
|
|
|
|
|
|
RWE
AG
|
|
|
135,700
|
|
|
4,785,917
|
|
INDONESIA—2.4%
|
|
|
|
|
|
|
|
Communication
Services—2.4%
|
|
Sarana
Menara Nusantara Tbk PT
|
|
|
30,491,500
|
|
|
2,810,255
|
|
Tower
Bersama Infrastructure Tbk PT
|
|
|
9,749,300
|
|
|
2,008,909
|
|
|
|
|
4,819,164
|
|
ITALY—5.8%
|
|
|
|
|
|
|
|
Communication
Services—1.3%
|
|
Infrastrutture
Wireless Italiane SpA (b)
|
|
|
222,500
|
|
|
2,478,211
|
|
Industrials—1.6%
|
|
|
|
|
|
|
|
Atlantia
SpA(a)
|
|
|
162,600
|
|
|
3,068,535
|
|
Materials—0.9%
|
|
|
|
|
|
|
|
Buzzi
Unicem SpA
|
|
|
82,400
|
|
|
1,871,661
|
|
Utilities—2.0%
|
|
|
|
|
|
|
Enel
SpA
|
|
|
521,400
|
|
|
4,001,858
|
|
JAPAN—0.9%
|
|
|
|
|
|
|
|
Industrials—0.9%
|
|
East
Japan Railway Co.
|
|
|
24,400
|
|
|
1,724,424
|
|
LUXEMBOURG—1.5%
|
|
|
|
|
|
|
|
Communication
Services—1.5%
|
|
SES
SA, ADR
|
|
|
332,800
|
|
|
2,967,307
|
|
MALAYSIA—1.3%
|
|
|
|
|
|
|
|
Industrials—1.3%
|
|
Malaysia
Airports Holdings Bhd(a)
|
|
|
1,597,500
|
|
|
2,627,190
|
|
MEXICO—1.6%
|
|
|
|
|
|
|
|
Industrials—1.6%
|
|
Promotora
y Operadora de Infraestructura SAB de CV
|
|
|
460,500
|
|
|
3,182,663
|
|
NETHERLANDS—1.0%
|
|
|
|
|
|
|
|
Communication
Services—1.0%
|
|
Koninklijke
KPN NV
|
|
|
636,900
|
|
|
2,004,171
|
|
NORWAY—1.3%
|
|
|
|
|
|
|
|
Communication
Services—1.3%
|
|
Telenor
ASA
|
|
|
146,700
|
|
|
2,469,253
|
|
PHILIPPINES—2.0%
|
|
|
|
|
|
|
|
Industrials—2.0%
|
|
International
Container Terminal Services, Inc.
|
|
|
1,035,900
|
|
|
3,960,018
|
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
9
|
Consolidated Portfolio
of Investments (continued)
September 30, 2021
|
|
|
Shares or
Principal
Amount
|
|
|
Value
|
|
LONG-TERM
INVESTMENTS (continued)
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
|
|
|
|
|
|
SPAIN—10.5%
|
|
|
|
|
|
|
|
Communication
Services—3.1%
|
|
|
|
|
|
|
|
Cellnex
Telecom SA (b)
|
|
|
98,700
|
|
|
$ 6,093,743
|
|
Industrials—5.0%
|
|
|
|
|
|
|
Aena
SME SA(a)(b)
|
|
|
21,200
|
|
|
3,666,362
|
|
Ferrovial
SA
|
|
|
210,245
|
|
|
6,136,771
|
|
|
|
9,803,133
|
|
Utilities—2.4%
|
|
|
|
|
|
|
|
EDP
Renovaveis SA
|
|
|
191,200
|
|
|
4,744,027
|
|
UNITED
KINGDOM—4.1%
|
|
|
|
|
|
|
|
Communication
Services—1.4%
|
|
Vodafone
Group PLC, ADR
|
|
|
173,100
|
|
|
2,674,395
|
|
Utilities—2.7%
|
|
|
|
|
|
|
|
National
Grid PLC, ADR
|
|
|
55,200
|
|
|
3,291,576
|
|
SSE
PLC
|
|
|
100,500
|
|
|
2,116,040
|
|
|
|
5,407,616
|
|
UNITED
STATES—33.0%
|
|
Communication
Services—2.1%
|
|
DISH
Network Corp., Class A(a)
|
|
|
55,000
|
|
|
2,390,300
|
|
T-Mobile
US, Inc.(a)
|
|
|
14,500
|
|
|
1,852,520
|
|
|
|
4,242,820
|
|
Consumer
Discretionary—1.1%
|
|
TravelCenters
of America, Inc.(a)
|
|
|
43,900
|
|
|
2,185,781
|
|
Energy—5.1%
|
|
Kinder
Morgan, Inc.
|
|
|
296,300
|
|
|
4,957,099
|
|
Williams
Cos., Inc. (The)
|
|
|
193,000
|
|
|
5,006,420
|
|
|
|
9,963,519
|
|
Industrials—6.4%
|
|
CoreCivic,
Inc., REIT(a)
|
|
|
97,000
|
|
|
863,300
|
|
Dycom
Industries, Inc.(a)
|
|
|
23,700
|
|
|
1,688,388
|
|
Kansas
City Southern
|
|
|
14,400
|
|
|
3,897,216
|
|
Norfolk
Southern Corp.
|
|
|
14,500
|
|
|
3,469,125
|
|
Union
Pacific Corp.
|
|
|
14,100
|
|
|
2,763,741
|
|
|
|
12,681,770
|
|
Real
Estate—4.8%
|
|
American
Tower Corp., REIT
|
|
|
15,600
|
|
|
4,140,396
|
|
Crown
Castle International Corp., REIT
|
|
|
28,000
|
|
|
4,852,960
|
|
GEO
Group, Inc. (The), REIT
|
|
|
58,400
|
|
|
436,248
|
|
|
|
9,429,604
|
|
10
|
Aberdeen Standard Global Infrastructure
Income Fund
|
Consolidated Portfolio of Investments
(concluded)
September 30, 2021
|
|
|
Shares
or
Principal
Amount
|
|
|
Value
|
LONG-TERM
INVESTMENTS (continued)
|
|
|
|
|
|
|
|
COMMON
STOCKS (continued)
|
|
|
|
|
|
|
|
UNITED
STATES (continued)
|
|
|
|
|
|
|
|
Utilities—13.5%
|
|
|
|
|
|
|
|
American
Electric Power Co., Inc.
|
|
|
28,000
|
|
|
$ 2,273,040
|
|
Atlantica
Sustainable Infrastructure PLC
|
|
|
100,800
|
|
|
3,478,608
|
|
CenterPoint
Energy, Inc.
|
|
|
83,000
|
|
|
2,041,800
|
|
Clearway
Energy, Inc., Class C
|
|
|
89,700
|
|
|
2,715,219
|
|
CMS
Energy Corp.
|
|
|
69,300
|
|
|
4,139,289
|
|
Evergy,
Inc.
|
|
|
31,600
|
|
|
1,965,520
|
|
FirstEnergy
Corp.
|
|
|
93,000
|
|
|
3,312,660
|
|
NextEra
Energy, Inc.
|
|
|
48,300
|
|
|
3,792,516
|
|
Vistra
Corp.
|
|
|
169,500
|
|
|
2,898,450
|
|
|
|
|
26,617,102
|
|
Total
Common Stocks
|
|
|
184,621,896
|
|
PRIVATE
EQUITY—6.1%(a)(c)(d)(e)
|
|
BT
Co-Invest Fund, L.P (through Aberdeen Standard Global Infrastructure Fund BL, LLC)(c)(g)
|
|
|
–
|
|
|
3,000,000
|
|
CAI
Co-Invest LP (through Aberdeen Standard Global Infrastructure Fund BL, LLC)(c)(g)
|
|
|
–
|
|
|
827,709
|
|
Cresta
BBR Co-Invest BL LLC(c)(f)
|
|
|
–
|
|
|
3,183,242
|
|
Cresta
Highline Co-Invest Fund I (through Aberdeen Standard Global Infrastructure Fund BL, LLC)(c)(g)
|
|
|
–
|
|
|
5,056,452
|
|
Total
Private Equity
|
|
|
12,067,403
|
|
SHORT-TERM
INVESTMENT—0.3%
|
|
UNITED
STATES—0.3%
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier Class, 0.03%(h)
|
|
|
496,510
|
|
|
496,510
|
|
Total
Short-Term Investment
|
|
|
496,510
|
|
Total
Investments (Cost $177,243,304)(i)—100.0%
|
|
|
197,185,809
|
|
Liabilities
in Excess of Other Assets—0.0%
|
|
|
(419
|
)
|
Net
Assets—100.0%
|
|
|
$
197,185,390
|
|
(a)
|
Non-income producing
security.
|
(b)
|
Denotes a security
issued under Regulation S or Rule 144A.
|
(c)
|
Restricted security,
not readily marketable. See Note 2(b) of the accompanying Notes to Consolidated Financial
Statements.
|
(d)
|
Illiquid security.
|
(e)
|
Private Equity Investments.
See Note 6 of the accompanying Notes to Consolidated Financial Statements.
|
(f)
|
Cresta Blocker invests
100% of its capital in Cresta Fund LP, in which the Fund's percent of ownership is approximately
18%.
|
(g)
|
Aberdeen Standard
Global Infrastructure Income Fund BL, LLC invests 100% of its capital in BT Co-Invest Fund,
L.P., Climate Adaptive Infrastructure (CAI) Co-Invest Fund LP and Cresta Highline Co-Invest
Fund in which the Fund's percent of ownership is approximately 9%, 8% and 32%, respectively.
|
(h)
|
Registered investment
company advised by State Street Global Advisors. The rate shown is the 7 day yield as of
September 30, 2021.
|
(i)
|
See accompanying Notes
to Consolidated Financial Statements for tax unrealized appreciation/(depreciation) of securities.
|
ADR
|
American Depositary
Receipt
|
PLC
|
Public Limited Company
|
REIT
|
Real Estate Investment
Trust
|
See accompanying Notes to Financial Statements.
|
Aberdeen Standard Global Infrastructure Income Fund
|
11
|
Consolidated Statement of Assets and Liabilities
As of September 30, 2021
Assets
|
Investments,
at value (cost $176,746,794)
|
|
$196,689,299
|
Short-term
investments, at value (cost $496,510)
|
|
496,510
|
Foreign
currency, at value (cost $93,528)
|
|
92,593
|
Interest
and dividends receivable
|
|
223,911
|
Tax
reclaim receivable
|
|
126,544
|
Prepaid
expenses
|
|
8,531
|
Total
assets
|
|
197,637,388
|
Liabilities
|
|
|
Investment
management fees payable (Note 3)
|
|
227,187
|
Director
fees payable
|
|
42,847
|
Investor
relations fees payable (Note 3)
|
|
16,403
|
Administration
fees payable (Note 3)
|
|
13,463
|
Other
accrued expenses
|
|
152,098
|
Total
liabilities
|
|
451,998
|
|
|
|
Net
Assets
|
|
$197,185,390
|
Composition
of Net Assets:
|
|
|
Common
stock (par value $.001 per share) (Note 5)
|
|
$ 8,855
|
Paid-in
capital in excess of par
|
|
176,949,440
|
Distributable
earnings
|
|
20,227,095
|
Net
Assets
|
|
$197,185,390
|
Net
asset value per common share based on 8,855,000 shares issued and outstanding
|
|
$ 22.27
|
See Notes to Consolidated Financial Statements.
12
|
Aberdeen Standard Global Infrastructure
Income Fund
|
Consolidated Statement of Operations
For the Year Ended September 30, 2021
Net
Investment Income
|
|
Income
|
|
|
|
Dividends
and other income (net of foreign withholding taxes of $378,016)
|
|
$ 5,291,676
|
|
Interest
income
|
|
135
|
|
Total
Investment Income
|
|
5,291,811
|
|
Expenses
|
|
|
|
Investment
management fee (Note 3)
|
|
2,646,202
|
|
Directors'
fees and expenses
|
|
165,264
|
|
Administration
fee (Note 3)
|
|
156,812
|
|
Legal
fees and expenses
|
|
111,860
|
|
Independent
auditors' fees and expenses
|
|
86,650
|
|
Insurance
expense
|
|
79,200
|
|
Investor
relations fees and expenses (Note 3)
|
|
66,014
|
|
Custodian's
fees and expenses
|
|
54,000
|
|
Reports
to shareholders and proxy solicitation
|
|
46,752
|
|
Transfer
agent's fees and expenses
|
|
16,434
|
|
Miscellaneous
|
|
53,584
|
|
Net
expenses
|
|
3,482,772
|
|
|
|
|
|
Net
Investment Income
|
|
1,809,039
|
|
Net
Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions:
|
|
|
|
Net
realized gain/(loss) from:
|
|
|
|
Investment
transactions
|
|
9,741,628
|
|
Foreign
currency transactions
|
|
(73,486
|
)
|
|
|
9,668,142
|
|
Net
change in unrealized appreciation/(depreciation) on:
|
|
|
|
Investment
transactions
|
|
25,208,826
|
|
Foreign
currency translation
|
|
(8,146
|
)
|
|
|
25,200,680
|
|
Net
realized and unrealized gain from investments and foreign currency translations
|
|
34,868,822
|
|
Net
Increase in Net Assets Resulting from Operations
|
|
$36,677,861
|
|
See Notes to Consolidated Financial Statements.
|
Aberdeen Standard Global Infrastructure Income Fund
|
13
|
Consolidated
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
For
the
Year Ended
September 30, 2021
|
|
|
For
the
Period Ended
September 30, 2020(a
|
)
|
|
|
|
|
|
|
|
Increase/(Decrease)
in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
Net
investment income
|
|
$ 1,809,039
|
|
|
$
159,117
|
|
Net
realized gain from investment and foreign currency related transactions
|
|
9,668,142
|
|
|
20,580
|
|
Net
change in unrealized appreciation/(depreciation) on investments and foreign currency translations
|
|
25,200,680
|
|
|
(5,264,210
|
)
|
Net
increase/(decrease) in net assets resulting from operations
|
|
36,677,861
|
|
|
(5,084,513
|
)
|
|
|
|
|
|
|
|
Distributions
to Shareholders from:
|
|
|
|
|
|
|
Distributable
earnings
|
|
(11,507,958
|
)
|
|
–
|
|
Net
decrease in net assets from distributions
|
|
(11,507,958
|
)
|
|
–
|
|
Issuance
of 0 and 8,855,000 common shares, respectively (Note 5)
|
|
–
|
|
|
177,000,000
|
|
Change
in net assets from capital transactions
|
|
–
|
|
|
177,000,000
|
|
Net
increase/(decrease) in net assets
|
|
25,169,903
|
|
|
171,915,487
|
|
|
|
|
|
|
|
|
Net
Assets:
|
|
|
|
|
|
|
Beginning
of year
|
|
172,015,487
|
|
|
100,000
|
|
End
of year
|
|
$197,185,390
|
|
|
$172,015,487
|
|
(a) For
the period from July 29, 2020 (commencement of operations) through September 30, 2020.
Amounts
listed as "–" are $0 or round to $0.
See
Notes to Consolidated Financial Statements.
14
|
Aberdeen Standard Global Infrastructure
Income Fund
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
For
the
Fiscal Year
Ended
September 30,
2021
|
|
|
For
the
Period
Ended
September 30,
2020(a)
|
|
PER
SHARE OPERATING PERFORMANCE(b):
|
|
|
|
|
|
|
Net
asset value per common share, beginning of year
|
|
$19.43
|
|
|
$20.00
|
|
Net
investment income
|
|
0.20
|
|
|
0.02
|
|
Net
realized and unrealized gains/(losses) on investments and foreign currency transactions
|
|
3.94
|
|
|
(0.59
|
)
|
Total
from investment operations applicable to common shareholders
|
|
4.14
|
|
|
(0.57
|
)
|
Distributions to common shareholders from:
|
|
|
|
|
|
|
Net
investment income
|
|
(1.20
|
)
|
|
–
|
|
Net
realized gains
|
|
(0.10
|
)
|
|
–
|
|
Total
distributions
|
|
(1.30
|
)
|
|
–
|
|
Net
asset value per common share, end of year
|
|
$22.27
|
|
|
$19.43
|
|
Market
value, end of year
|
|
$19.93
|
|
|
$17.51
|
|
Total Investment Return
Based on(c):
|
|
|
|
|
|
|
Market
value
|
|
21.54%
|
|
|
(12.45%
|
)
|
Net
asset value
|
|
22.39%
|
|
|
(2.85%
|
)
|
|
|
|
|
|
|
|
Ratio to Average Net
Assets Applicable to Common Shareholders/Supplementary Data:
|
|
|
|
|
|
|
Net
assets applicable to common shareholders, end of year (000 omitted)
|
|
$197,185
|
|
|
$172,015
|
|
Average
net assets applicable to common shareholders (000 omitted)
|
|
$196,015
|
|
|
$177,052
|
|
Net
operating expenses
|
|
1.78%
|
|
|
2.00%
|
(d)(e)
|
Net
investment income
|
|
0.92%
|
|
|
0.55%
|
(d)
|
Portfolio
turnover
|
|
28%
|
|
|
–
|
(f)
|
(a)
|
For
the period from July 29, 2020 (commencement of operations) through September 30, 2020.
|
(b)
|
Based
on average shares outstanding.
|
(c)
|
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.
|
(e)
|
The
expense ratio is higher than the Fund anticipates for a typical fiscal year due to the short
fiscal period covered by the report.
|
Amounts
listed as "–" are $0 or round to $0.
See
Notes to Consolidated Financial Statements.
|
Aberdeen
Standard Global Infrastructure Income Fund
|
15
|
Notes
to Financial Statements
September
30, 2021
1.
Organization
Aberdeen
Standard Global Infrastructure Income Fund (the "Fund") is a non-diversified (as defined by the Investment Company Act of 1940,
as amended (the "1940 Act")), closed-end management investment company. The Fund was organized as a Maryland statutory trust
on November 13, 2019 and seeded with an initial capital amount of $100,000 on June 19, 2020. It commenced operations on July 29, 2020.
The Fund's investment objective is to seek to provide a high level of total return with an emphasis on current income. The investment
objective is not fundamental and may be changed by the Board of Trustees without shareholder approval. There is no assurance that the
Fund will achieve its investment objective.
Basis
for Consolidation for the Fund
Aberdeen
Standard Global Infrastructure Income Fund BL, LLC (the "Subsidiary"), a Delaware corporation, was incorporated on September
28, 2020 and is a wholly-owned subsidiary of the Fund. The Subsidiary acts as an investment vehicle for the Fund in order to effect certain
investments on behalf of the Fund consistent with the Fund's investment objective and policies as described in the Fund's prospectus.
The Consolidated Schedule of Portfolio Investments ("CSOI") includes positions of the Fund and the Subsidiary. The consolidated
financial statements include the accounts of the Fund and the Subsidiary. Subsequent references to the Fund within the Notes to the Consolidated
Financial Statements collectively refer to the Fund and the Subsidiary. All significant intercompany balances and transactions have been
eliminated in consolidation.
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.
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.
Equity
securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is
traded at the "Valuation Time" subject to application. The Valuation Time is as of the close of regular trading on the New
York Stock Exchange ("NYSE") (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the
mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ
are valued at the NASDAQ official closing price.
Foreign
equity securities that are traded on foreign exchanges that close prior to Valuation Time are valued by applying valuation factors to
the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider approved
by the Board. These valuation factors are used when pricing the Fund's portfolio holdings to estimate market movements between the time
foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary
receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When
prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted
or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level
2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service
provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the
security is determined to be a Level 1 investment.
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 Investment Company Act of 1940, as amended, and has an objective, which is not
guaranteed, to maintain a $1.00 per share NAV. Generally, these investment types are categorized as Level 1 investments.
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 it trades closes before the Valuation Time), 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. 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.
16
|
Aberdeen Standard Global Infrastructure
Income Fund
|
Notes
to Financial Statements (continued)
September
30, 2021
In
accordance with the authoritative guidance on fair value measurements and disclosures under GAAP in the United States of America, 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. 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.
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).
The
Fund invests in infrastructure investments through private investment funds, which represented 6.1% of the net assets of the Fund as
of September 30, 2021. The Fund follows the guidance issued in ASU 2015-07 Topic 820, Disclosures for Investments in Certain Entities
That Calculate Net Asset Value per Share (or Its Equivalent), and values private investment companies using the NAVs provided by the
underlying private investment companies as a practical expedient. The Fund determined that the use of the practical expedient was appropriate
as the investments in private investment companies did not have readily determinable fair values. The Fund applies the practical expedient
to private investment companies on an investment-by-investment basis, and consistently with the Fund's entire position in a particular
investment, unless it is probable that the fund will sell a portion of an investment at an amount different from the NAV of the investment.
In such cases the Fund may make adjustments to the NAV reported by the private investment company based on market or economic changes,
which can include market fluctuations or other economic conditions for which it may be necessary to adjusted a reported NAV. In addition,
the impact of changes in the market environment and other events on the fair values of the Fund's investments that have no readily available
market values may differ from the impact of such changes on the readily available market values for the Fund's other investments. The
Fund's net asset value could be adversely affected if the Fund's determinations regarding the fair value of the Fund's investments were
materially higher or lower than the values that the Fund ultimately realizes upon the disposal of such investments.
The
following is a summary of the inputs used as of September 30, 2021 in valuing the Fund's investments and other financial instruments
at fair value. The inputs or methodology 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
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stocks
|
|
$122,663,605
|
|
|
$61,958,291
|
|
|
$–
|
|
|
$184,621,896
|
|
Short-Term
Investment
|
|
496,510
|
|
|
–
|
|
|
–
|
|
|
496,510
|
|
Total
|
|
$123,160,115
|
|
|
$61,958,291
|
|
|
$–
|
|
|
$185,118,406
|
|
Private
Equity(a)
|
|
|
|
|
|
|
|
|
|
|
12,067,403
|
|
Total
Investments
|
|
|
|
|
|
|
|
|
|
|
$197,185,809
|
|
(a)
|
Private
Equity investments are measured at the net asset valuations provided by the underlying funds as a practical expedient and have not been
classified in the fair value levels. The fair value amounts presented are intended to permit reconciliation to the total investment amount
presented in the Portfolio of Investments.
|
Amounts
listed as "–" are $0 or round to $0.
|
Aberdeen
Standard Global Infrastructure Income Fund
|
17
|
Notes
to Financial Statements (continued)
September
30, 2021
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; and
|
|
(ii)
|
purchases
and sales of investment securities, income and expenses – at the rate of exchange prevailing on the respective dates of such transactions.
|
The
Fund does not isolate that portion of gains and losses on investments in equity securities due to changes in the foreign exchange rates
from the portion due to changes in market prices of equity securities. Accordingly, realized and unrealized foreign currency gains and
losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions
balances.
The
Fund reports certain foreign currency related transactions and foreign taxes withheld on security transactions as components of realized
gains for financial reporting purposes, whereas such foreign currency related transactions are treated as ordinary income for U.S. federal
income tax purposes.
Net
unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are
reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation of other assets and liabilities
denominated in foreign currencies.
Net
realized foreign exchange gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward
foreign currency contracts, exchange gains or losses realized between the trade date and settlement date on security transactions,
and
the difference between the amounts of interest and dividends recorded on the Fund's books and the U.S. Dollar equivalent of the amounts
actually received.
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.
Rights Issues and Warrants:
Rights
issues give the right, normally to existing shareholders, to buy a proportional number of additional securities at a given price (generally
at a discount) within a fixed period (generally a short-term period) and are offered at the company's discretion. Warrants are securities
that give the holder the right to buy common stock at a specified price for a specified period of time. Rights issues and warrants are
speculative and have no value if they are not exercised before the expiration date. Rights issues and warrants are valued at the last
sale price on the exchange on which they are traded.
e.
Security Transactions, Investment Income and Expenses:
Security
transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated
on the identified cost basis. Dividend income is recorded on the ex-dividend date except for certain dividends on foreign securities,
which are recorded as soon as the Fund is informed after the ex-dividend date. Interest income and expenses are recorded on an accrual
basis.
f.
Distributions:
The
Fund records dividends and distributions payable to its shareholders on the ex-dividend date. The amount of dividends and distributions
from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may
differ from GAAP. These book basis/tax basis differences are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment;
temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized
capital gains for tax purposes are reported as return of capital.
18
|
Aberdeen Standard Global Infrastructure
Income Fund
|
Notes to Financial Statements (continued)
September 30, 2021
g. Federal Income Taxes:
The Fund intends to continue to qualify as a "regulated investment
company" (RIC) by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal
Revenue Code of 1986 ("the Code"), as amended, 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.
For federal income tax purposes, taxable income of the Fund and the Subsidiary
are separately calculated. The Subsidiary is classified as a corporation for tax purposes and will be required to pay corporate income
tax on its earnings. Net losses of the Subsidiary are not deductible by the Fund.
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. 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 will be subject to such review when available.
h. 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 is reported on the Statement of Operations as part of the Net Change in Unrealized Appreciation/Depreciation
on investments.
3. Agreements and Transactions with Affiliates
a. Investment Adviser:
Aberdeen Standard Investments Inc. ("ASII") (to be known as
abrdn Inc. effective January 1, 2022) and Aberdeen Asset Managers Limited ("AAML") serve as the Fund's Investment Adviser and
Sub-Adviser, respectively, pursuant to an investment advisory agreement (the "Advisory Agreement") and sub-advisory agreement
(the "Sub-Advisory Agreement") with the Fund. ASII and AAML (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.
As compensation for its services to the Fund, ASII receives an annual
investment advisory fee of 1.35% based on the Fund's average daily Managed Assets, computed daily and payable monthly. "Managed Assets"
is defined as total assets of the Fund, including assets attributable to any form of leverage, minus liabilities (other than debt representing
leverage and the aggregate liquidation preference of any preferred stock that may be outstanding). Under the Sub-Advisory Agreement, ASII
is responsible for the payment of fees to AAML. For the fiscal year ended September 30, 2021, ASII earned $2,646,202 for advisory services.
b. Fund Administration:
ASII is the Fund's Administrator, pursuant to an agreement under which
ASII receives a fee paid by the Fund, at an annual fee rate of 0.08% of the Fund's average daily net assets. For the fiscal year ended
September 30, 2021, ASII earned $156,812 from the Fund for administration services.
c. Investor Relations:
Under the terms of the Investor Relations Services Agreement, ASII will
provide and/or engage third parties to provide investor relations services to the Fund and certain other funds advised by the Adviser
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 ASII 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 ASII.
During the fiscal year ended September 30, 2021, the Fund incurred investor
relations fees of approximately $66,014. For the year ended
Aberdeen Standard Global Infrastructure Income
Fund
|
19
|
Notes to Financial Statements (continued)
September 30, 2021
September 30, 2021, ASII did not contribute 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 fiscal year ended September 30, 2021, were $54,949,495 and $52,142,084, respectively.
5. Capital
The Fund is authorized to issue 100,000,000 common shares with par value
$0.001. As of September 30, 2021, there were 8,855,000 common shares issued and outstanding.
6. Private Equity Investments
Certain of the Fund's investments, listed in the chart below, are
restricted as to resale and are valued at net asset value as determined in good faith by, or under the direction of, the Board under
procedures established by the Board in the absence of readily ascertainable market values.
Security
|
|
Acquisition
Date(s)
|
|
Commitment
|
|
Funded
|
|
Unfunded
|
|
Cost
|
|
Fair
Value at
9/30/21
|
|
Percent
of Net
Assets
|
|
Cumulative
Distributions
Received
|
|
BT
Co-Invest Fund, L.P. (through
Aberdeen Standard
Global Infrastructure
Fund BL, LLC)
|
|
7/1/21
|
|
$3,000,000
|
|
$3,000,000
|
|
$0
|
|
$3,000,000
|
|
$3,000,000
|
|
1.52
|
|
$–
|
|
CAI
Co-Invest LP (through
Aberdeen Standard
Global Infrastructure
Fund BL, LLC)
|
|
10/27/20
|
|
3,000,000
|
|
813,326
|
|
2,186,674
|
|
863,028
|
|
827,709
|
|
0.42
|
|
–
|
|
Cresta
BBR Co-Invest BL LLC
|
|
9/28/20
|
|
3,000,000
|
|
3,000,000
|
|
0
|
|
3,000,000
|
|
3,183,242
|
|
1.61
|
|
–
|
|
Cresta
Highline Co-Invest
Fund I (through Aberdeen
Standard Global
Infrastructure Fund BL, LLC)
|
|
7/22/21
|
|
5,000,000
|
|
5,000,000
|
|
0
|
|
5,056,452
|
|
5,056,452
|
|
2.57
|
|
–
|
|
Total
|
|
|
|
$14,000,000
|
|
$11,813,326
|
|
$2,186,674
|
|
$11,919,480
|
|
$12,067,403
|
|
6.12
|
|
$–
|
|
The Fund may incur certain costs in connection with the disposition of
the above securities. The Fund invests in other closed end investment vehicles with lock up provisions for the life of those vehicles,
which can be up to 10 years or more.
7. Portfolio Investment Risks
The following describes certain risks of investing in the Fund. This
is not a complete list of risk factors. Please see the back of this shareholder report for more information about these and other risks.
a. Infrastructure-Related Investments
Risk:
Infrastructure-related issuers may be subject to a variety of factors
that may adversely affect their business or operations, including high interest costs in connection with capital construction programs,
high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased
competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy
conservation policies and other factors. For more information about
the specific risks by which infrastructure-related issuers may be particularly affected, please see the back of this shareholder
report.
b. 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.
|
20
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Notes to Financial Statements (continued)
September 30, 2021
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. Foreign securities may also be harder to price than U.S. securities.
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 Adviser are unsuccessful.
c. Risks Associated with Emerging Markets
The emerging countries' securities markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United States. A high proportion of the securities of many companies
in emerging countries may be held by a limited number of persons, which may limit the number of securities available for investment by
the Fund. The limited liquidity of emerging country securities markets may also affect the Fund's ability to acquire or dispose of securities
at the price and time it wishes to do so.
d. Private Investment Company Securities Risk:
The Fund's investments in private companies may be subject to higher
risk than investments in securities of public companies. Little public information may exist about many of the issuers of these securities,
and the Fund will be required to rely on the ability of the Adviser and Subadviser to obtain adequate information to evaluate the potential
risks and returns involved in investing in these issuers. If the Adviser or Subadviser are unable to obtain all material information about
the issuers of these securities, it may be difficult to make a fully informed investment decision, and the Fund may lose some or all of
its investment in these securities. These factors could subject the Fund to greater risk than investments in securities of public companies
and negatively affect the Fund's investment returns, which could negatively impact the dividends paid to you and the value of your investment.
In addition, the Fund will likely be able to sell its investments in private companies only in private transactions with another investor
or group of investors, and there can be no assurance that the Fund will be able to successfully arrange such transactions if and when
it desires to sell any of its investments in private companies or, if successfully arranged, that the Fund will be able to obtain favorable
values upon the sale of its investments in private companies in such transactions.
See additional information about the risks posed by private investments
in the back of this shareholder report.
e. Sector Risk:
To the extent that the Fund has a significant portion of its assets invested
in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more
vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Industrials Sector Risk. The value of securities issued by companies
in the industrials sector may be adversely affected by supply and demand related to their specific products or services and industrials
sector products in general. The products of manufacturing companies may face obsolescence due to rapid technological developments and
frequent new product introduction. Government regulations, world events, economic conditions and exchange rates may adversely affect the
performance of companies in the industrials sector. Companies in the industrials sector may be adversely affected by liability for environmental
damage and product liability claims. The industrials sector may also be adversely affected by changes or trends in commodity prices, which
may be influenced by unpredictable factors. Companies in the industrials sector, particularly aerospace and defense companies, may also
be adversely affected by government spending policies because companies involved in this sector rely to a significant extent on government
demand for their products and services.
Utility Sector Risk. When interest rates go up, the value of securities
issued by utilities companies historically has gone down. In most countries and localities, the utilities sector is regulated by governmental
entities, which can increase costs and delays for new projects and make it difficult to pass increased costs on to consumers. In certain
areas, deregulation of utilities has resulted in increased competition and reduced profitability for certain companies, and increased
the risk that a particular company will become bankrupt or fail completely. Reduced profitability, as well as new uses for or additional
need of funds (such as for expansion, operations or stock buybacks), could result in reduced dividend payout rates for utilities companies.
In addition, utilities companies face the risk of increases in the cost and reduced availability of fuel (such as oil, coal, natural gas
or nuclear energy) and potentially high interest costs for borrowing to finance new projects.
f. Valuation Risk:
The price that the Fund could receive upon the sale of any particular
portfolio investment may differ from the Fund's valuation of the investment, particularly for securities that trade in thin or volatile
markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the
price
Aberdeen Standard Global Infrastructure Income
Fund
|
21
|
Notes to Financial Statements (continued)
September 30, 2021
received upon the
sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lower
than expected gain upon the sale of the investment. The Fund's ability to value its investments may also be impacted by technological
issues and/or errors by pricing services or other third-party service providers.
g. Market Events Risk:
Markets are affected
by numerous factors, including interest rates, the outlook for corporate profits, the health of the national and world economies, the
fluctuation of other stock markets around the world, and financial, economic and other global market developments and disruptions, such
as those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic
developments, public health emergencies and natural/environmental disasters. Such events can negatively impact the securities markets
and cause the Fund to lose value.
One such event is
the COVID-19 pandemic, which has caused major disruptions to economies and markets around the world, including the markets in which the
Fund invests, and which has and may continue to negatively impact the value of certain of the Fund's investments. Although vaccines for
COVID-19 and variants thereof are becoming more widely available, the COVID-19 pandemic and impacts thereof may continue for an extended
period of time and may vary from market to market. To the extent the impacts of COVID-19 continue, the Fund may experience negative impacts
to its business that could exacerbate other risks to which the Fund is subject.
Policy and legislative
changes in countries around the world are affecting many aspects of financial regulation, and governmental and quasi-governmental authorities
and regulators throughout the world have previously responded to serious economic disruptions with a variety of significant fiscal and
monetary policy changes.
The impact of these
changes on the markets, and the practical implications for market participants, may not be fully known for some time. In addition, economies
and financial markets throughout the world are becoming increasingly interconnected. As a result, whether or not a Fund invests in securities
of issuers located in or with significant exposure to countries experiencing economic and financial difficulties, the value and liquidity
of the Fund's investments may be negatively affected by such events.
For example, whether
or not the Fund invests in securities of issuers located in Europe (whether the EU, Eurozone or UK) or with significant exposure to European,
EU, Eurozone or UK issuers or countries, the unavoidable uncertainties and events related to the UK's departure from the EU ("Brexit")
could negatively affect the value and liquidity of a Fund's investments, increase taxes and costs of business and cause volatility in
currency exchange rates and interest rates. Brexit could adversely affect the performance of contracts in existence at the date of Brexit
and European, UK or worldwide political, regulatory, economic or market conditions and could contribute to instability in political institutions,
regulatory agencies and financial markets. Brexit could also lead to legal uncertainty and politically divergent national laws and regulations
as a new relationship between the UK and EU is defined and as the UK determines which EU laws to replace or replicate. Any of these effects
of Brexit, and others that cannot be anticipated, could adversely affect the Fund's business, results of operations and financial condition.
Please read the
prospectus for more detailed information regarding these and other risks.
8. Recent Regulatory Pronouncements
In October 2020, the 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. While the new rule became effective February 19, 2021, funds will not be required to fully comply with the new rule until August
19, 2022. It is not currently clear what impact, if any, the new rule will have on the availability, liquidity or performance of derivatives.
Management is assessing the impact of Rule 18f-4 on the Funds.
9. 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.
|
22
|
Aberdeen Standard Global Infrastructure Income
Fund
|
Notes to Financial Statements (continued)
September 30, 2021
10. Tax Information
The U.S. federal income tax basis of the Fund's investments (including
derivatives, if applicable) and the net unrealized appreciation as of September 30, 2021, were as follows:
Tax
Basis of Investments
|
|
Appreciation
|
|
Depreciation
|
|
Net
Unrealized
Appreciation/
(Depreciation)
|
|
$178,182,845
|
|
$24,235,031
|
|
$(5,232,067)
|
|
$19,002,964
|
|
The tax character of distributions paid during the fiscal years ended
September 30, 2021 and September 30, 2020 was as follows:
|
September
30, 2021
|
September
30, 2020
|
|
Distributions
paid from:
|
|
|
Ordinary
Income
|
$10,628,449
|
$–
|
|
Net
long-term capital gains
|
879,509
|
–
|
|
Total
tax character of distributions
|
$11,507,958
|
$–
|
|
As of September 30, 2021, the components of accumulated earnings on a
tax basis were as follows:
Undistributed
ordinary income – net
|
$–
|
|
Undistributed
long-term capital gains – net
|
1,230,166
|
|
Total
undistributed earnings
|
$–
|
|
Capital
loss carryforward
|
–
|
*
|
Other
currency gains
|
–
|
|
Other
temporary differences
|
–
|
|
Unrealized
appreciation/(depreciation)
|
18,996,929
|
**
|
Total
accumulated earnings/(losses) – net
|
$20,227,095
|
|
|
*
|
On
September 30, 2021, the Fund did not have a a capital loss carryforward.
|
|
**
|
The difference between book-basis
and tax-basis unrealized appreciation/(depreciation) is attributable to: the realization
for tax purposes of unrealized gains on investments in passive foreign investment companies
|
The Company may hold certain portfolio company investments through its
consolidated taxable subsidiary. Such subsidiary may be subject to U.S. federal and state corporate-level income taxes. The consolidated
subsidiary recognizes deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between
the tax basis of certain assets and liabilities and the reported amounts included in the accompanying consolidated balance sheet using
the applicable statutory tax rates in effect for the year in which any such temporary differences are expected to reverse.
At September 30, 2021, the Fund recorded a deferred tax asset (DTA) of
$53,585 primarily associated with net operating loss carryforwards and a corresponding valuation allowance of $53,585 against such asset
in recognition of the Fund's conclusion that it may not be able to utilize these losses in future years. The Fund utilized an effective
tax rate of 29% to record its DTA.
GAAP requires that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting. Accordingly, the table below details the necessary reclassifications, which
are a result of permanent differences primarily attributable to foreign currency gains and losses, passive foreign investment company
gains and losses, distribution re-designations, REIT Investments and U.S. blocker expenses allocation. These reclassifications have no
effect on net assets or NAVs per share.
Paid-in
Capital
|
|
Distributable
Earnings/
(Accumulated Loss)
|
|
$(141,705)
|
|
$141,705
|
|
Aberdeen Standard Global Infrastructure Income
Fund
|
23
|
Notes to Financial Statements (concluded)
September 30, 2021
11. 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 or adjustments were required to the financial statements as of September 30, 2021, other than as noted.
Effective for the
2022 fiscal year, the Board approved a Stable Distribution Plan that the Fund would pay a fixed monthly distribution of US$0.1083, commencing
with the distribution paid on October 29, 2021. On October 11, 2021 and November 9, 2021, the Fund announced that it will pay on October
29, 2021 and November 30, 2021, a distribution of US $0.1083 per share to all shareholders of record as of October 22, 2021 and November
19, 2021, respectively.
|
24
|
Aberdeen Standard Global Infrastructure Income
Fund
|
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees
of
Aberdeen Standard Global Infrastructure Income Fund:
Opinion on the Financial Statements
We have audited
the accompanying consolidated statement of assets and liabilities of Aberdeen Standard Global Infrastructure Income Fund (the Fund),
including the consolidated portfolio of investments, as of September 30, 2021, the related consolidated statement of operations for the
year then ended, the consolidated statements of changes in net assets for the year then ended and for the period from July 29, 2020 through
September 30, 2020, and the related notes (collectively, the consolidated financial statements) and the consolidated financial highlights
for the year then ended and for the period from July 29, 2020 through September 30, 2020. In our opinion, the consolidated financial
statements and consolidated financial highlights present fairly, in all material respects, the financial position of the Fund as of September
30, 2021, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year
or period in the two year period then ended in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These consolidated
financial statements and consolidated financial highlights are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent
with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.
We conducted our
audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the consolidated financial statements and consolidated financial highlights are free of material misstatement,
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated
financial statements and consolidated financial highlights, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated
financial statements and consolidated financial highlights. Such procedures also included confirmation of securities owned as of September
30, 2021, by correspondence with the custodian or by other appropriate auditing procedures. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements and consolidated financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served
as the auditor of one or more Aberdeen investment companies since 2009.
Philadelphia, Pennsylvania
November 24, 2021
|
Aberdeen Standard Global Infrastructure Income Fund
|
25
|
Federal Tax Information: Dividends and
Distributions (unaudited)
The following information is provided
with respect to the distributions paid by the Fund during the fiscal year ended September 30, 2021:
Payable
Date
|
|
Total
Cash
Distribution
|
|
Long-Term
Capital
Gain
|
|
Return
of
Capital
|
|
Net
Ordinary
Dividend
|
|
Foreign
Taxes
Paid(1)
|
|
Gross
Ordinary
Dividend
|
|
Qualified
Dividends(2)
|
|
Foreign
Source
Income
|
|
10/9/20
|
|
0.108300
|
|
0.000000
|
|
0.000000
|
|
0.108300
|
|
0.003887
|
|
0.112187
|
|
0.062598
|
|
0.011567
|
|
11/10/20
|
|
0.108300
|
|
0.000000
|
|
0.000000
|
|
0.108300
|
|
0.000000
|
|
0.108300
|
|
0.062598
|
|
0.011166
|
|
12/9/20
|
|
0.108300
|
|
0.000000
|
|
0.000000
|
|
0.108300
|
|
0.000000
|
|
0.108300
|
|
0.062598
|
|
0.011166
|
|
1/29/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
2/26/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
3/31/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
4/30/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
5/28/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
6/30/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
7/30/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
8/31/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
9/30/21
|
|
0.108300
|
|
0.012284
|
|
0.000000
|
|
0.096016
|
|
0.004311
|
|
0.100328
|
|
0.048606
|
|
0.057357
|
|
Total
|
|
1.299600
|
|
0.110556
|
|
0.000000
|
|
1.189044
|
|
0.042686
|
|
1.231739
|
|
0.625248
|
|
0.550112
|
|
|
(1)
|
The
foreign taxes paid represent taxes incurred by the Fund on interest received from foreign
sources. Foreign taxes paid may be included in taxable income with an offsetting deduction
from gross income or may be taken as a credit for taxes paid to foreign governments. You
should consult your tax advisor regarding the appropriate treatment of foreign taxes paid.
|
|
(2)
|
The
Fund hereby designates the amount indicated above or the maximum amount allowable by law.
|
Supplemental Information (unaudited)
Results of Annual Meeting of Shareholders
The Annual Meeting
of Shareholders was held virtually on May 27, 2021. The description of the proposal and number of shares voted at the meeting are as
follows:
To
elect one Class I Trustee to the Board of Trustees to serve for a three-year term:
|
|
Votes
For
|
|
Votes
Withheld
|
|
John
Sievwright
|
|
7,049,907
|
|
32,710
|
|
26
|
Aberdeen Standard Global Infrastructure Income
Fund
|
Additional Information Regarding the
Fund (unaudited)
Recent Changes
The following
information is a summary of certain changes during the fiscal year ended September 30, 2021. This information may not reflect all of
the changes that have occurred since you purchased the Fund.
During the applicable
period, there have been: (i) no material changes to the Fund's investment objectives and policies that constitute its principal portfolio
emphasis that have not been approved by shareholders, (ii) no material changes to the Fund's principal risks, and (iii) no changes to
the Fund's charter or by-laws that would delay or prevent a change of control that have not been approved by shareholders.
Changes to Persons Primarily Responsible
for Day-to-Day Management of the Fund
The Fund is managed
by the Adviser's and Subadviser's Global Equity Team, which is responsible for the Fund's public infrastructure investments, and the
Real Assets Team, which is responsible for the Fund's private/direct infrastructure investments. The portfolio managers of the Adviser
and the Subadviser are responsible for the day-to-day management of their respective sleeves of the Fund's overall investment portfolio.
Effective July 31, 2021, Jim Gasperoni departed the Adviser and Donal Reynolds was added as a portfolio manager of the Fund joining the
current team of Dominic Byrne, Martin Connaghan, Joshua Duitz, and Ryan Sullivan. Donal is an Investment Director in the Global Equity
Team and is lead Portfolio Manager for the Global Equity SICAV and the Global Focused Funds (OIEC & SICAV), as well as being co-lead
of the Global Innovation Fund. Donal joined abrdn in 2006 as an Investment Process Analyst. In 2010, he transferred to the US Equity
Team in Boston as Vice President. In 2014, he was promoted to Senior Vice President, Global Equities. Prior to this Donal worked for
a number of firms, including BIL-Dexia, ING, JP Morgan and Aegon. Donal graduated with an MA in Chinese Studies and a BSC in Management.
Additionally he holds the Investment Management Certificate and is a CFA Charterholder.
Investment Objectives and Policies
The Fund's investment
objective is to seek to provide a high level of total return with an emphasis on current income. There is no assurance that the Fund
will achieve its investment objective. The investment objective is not fundamental and may be changed by the Board of Trustees without
shareholder approval.
The Fund seeks
to achieve its investment objective by investing in a portfolio of income-producing public and private infrastructure equity investments
around the world.
Under normal circumstances,
at least 80% of the Fund's net assets (plus the amount of any borrowings for investment purposes) will be invested in U.S. and non-U.S.
infrastructure-related issuers. The Fund
considers an issuer
to be infrastructure-related if (i) at least 50% of the issuer's assets consist of infrastructure assets or (ii) at least 50% of the
issuer's gross income or net profits are attributable to or derived, directly or indirectly, from the ownership, management, construction,
development, operation, utilization or financing of infrastructure assets. Infrastructure assets are the physical structures and networks
that provide necessary services to society. Examples of infrastructure assets include, but are not limited to, transportation assets
(e.g., toll roads, bridges, tunnels, parking facilities, railroads, rapid transit links, airports, refueling facilities and seaports),
utility assets (e.g., electric transmission and distribution lines, power generation facilities, gas and water distribution facilities
and sewage treatment plants), communications assets (e.g., wireless telecommunication services, cable and satellite networks, broadcast
and wireless towers), energy infrastructure assets (e.g., pipelines) and social assets (e.g., courthouses, hospitals, schools, correctional
facilities, stadiums and subsidized housing).
The Fund may invest
in issuers located anywhere in the world, including issuers located in emerging markets. Under normal circumstances, the Fund will invest
in issuers from at least three different countries and will invest significantly (at least 40% of its total assets – unless market
conditions are not deemed favorable by the Adviser, in which case the Fund would invest at least 30% of its total assets) in non-U.S.
issuers. A company is considered a non-U.S. issuer if Fund management determines that the company meets one or more of the following
criteria:
|
•
|
the
company is organized under the laws of or has its principal place of business in a country
outside the U.S.;
|
|
•
|
the
company has its principal securities trading market in a country outside the U.S.; and/or
|
|
•
|
the
company derives the majority of its annual revenue or earnings or assets from goods produced,
sales made or services performed in a country outside the U.S.
|
It is currently anticipated that, under
normal circumstances, the Fund's investments in emerging market issuers will not exceed 30% of the Fund's total assets. At times, the
Fund may have a significant amount of its assets invested in a country or geographic region. The Fund may invest in securities denominated
in U.S. Dollars and currencies of foreign countries.
The Fund's investment portfolio generally
will be comprised of the following:
• Public
Infrastructure Investments. The Fund will, under normal circumstances, invest at least 60%, and generally expects to invest approximately
75%, of its total assets in listed equity securities of infrastructure-related issuers. Equity securities in which the Fund
|
Aberdeen Standard Global Infrastructure Income Fund
|
27
|
Additional Information Regarding the
Fund (unaudited) (continued)
intends to invest
include primarily common stocks, preferred stocks and depositary receipts. The Fund may invest in securities of any market capitalization.
During the period of initial investment in Private Infrastructure Opportunities (defined below), and as the Fund approaches the end of
its 15-year term, the Fund may invest up to 100% of its total assets in public infrastructure investments.
• Private/Direct
Infrastructure Investments. Under normal circumstances, the Fund will invest at least 10%, and currently intends to generally invest
closer to 25%, of its total assets, measured at the time of investment, in infrastructure assets through private transactions ("Private
Infrastructure Opportunities"). A "private transaction" means an investment in infrastructure assets through the purchase
of securities in a transaction that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act").
Private Infrastructure Opportunities include investments in: (i) sponsor vehicles created for the purpose of investing in private infrastructure
companies or assets, as described below; (ii) private infrastructure operating companies; and (iii) to a lesser extent, private equity
funds that invest in infrastructure assets. Private Infrastructure Opportunities may include investments alongside other funds or accounts
advised by the Adviser or its affiliates in certain infrastructure assets ("Co-Investment Opportunities") or on a stand-alone
basis alongside other investors ("Stand-Alone Opportunities"). Unless and until the Fund receives an exemptive order from the
U.S. Securities and Exchange Commission ("SEC") to co-invest in negotiated Co-Investment Opportunities (which cannot be assured),
the Fund will only invest in Co-Investment Opportunities where the transaction is permitted under existing regulatory guidance, such
as transactions in which price is the only negotiated term. Certain Co-Investment Opportunities and Standalone Opportunities may be issued
by sponsor vehicles structured, for administrative and/or tax purposes, as funds that would be investment companies but for the provisions
of Section 3(c)(1) or 3(c)(7) of the 1940 Act ("sponsor vehicles"). Such sponsor vehicles do not generally have the same characteristics
as funds relying on Section 3(c)(1) or 3(c)(7) that are commonly known as "private equity funds". The Fund will not invest
in funds commonly known as "private equity funds". The Fund will invest no more than 15% of its net assets, measured at the
time of investment, in all sponsor vehicles and no more than 3% of its net assets, measured at the time of investment, in a single sponsor
vehicle. In addition, at all times, the Fund will own only a minority ownership interest (i.e., less than 50%) in any sponsor vehicle
in which it invests.
As a result of
the relatively limited availability of Private Infrastructure Opportunities, the Fund may have a lower percentage of its total assets
invested in Private Infrastructure Opportunities, and a higher percentage of its assets invested in publicly listed infrastructure issuers,
during the initial 24 months following inception. In addition, as the
Fund disposes
of individual Private Infrastructure Opportunities, the Fund will look to redeploy its capital into new Private Infrastructure Opportunities,
which may be scarce. As the Fund approaches the end of its 15-year term, the Fund may refrain from making new investments in Private
Infrastructure Opportunities, if necessary, for liquidity purposes, and increase its allocation to listed infrastructure investments.
During such periods, the Fund may have a lower percentage of its total assets invested in Private Infrastructure Opportunities.
In addition, the
Fund may use derivative instruments from time to time, primarily to hedge currency exposure, although it is not required to do so. To
the extent the Fund invests in derivative instruments that provide economic exposure to infrastructure-related issuers, such investments
will be counted for purposes of the Fund's 80% investment policy. The Fund will value derivatives based on market value or fair value
for purposes of its 80% investment policy.
In selecting public
infrastructure investments, the Adviser's and Sub-Adviser's Global Equity Team employs a fundamental, bottom-up investment process, based
on first-hand research and disciplined company evaluation. As active equity investors, ASI uses deep fundamental research, responsible
stewardship around environmental, social and governance factors and a disciplined investment process to pursue the Fund's investment
objective.
With respect to
the Fund's private/direct infrastructure investments, ASI's real assets investment team's (the "Real Assets Team") process
combines the team's expertise in sourcing, diligencing and monitoring Private Infrastructure Opportunities developed over the past decade.
ASI maintains a database of hundreds of industry contacts and tracks a vast number of investment opportunities on an ongoing basis. ASI
uses this informational advantage, combined with first hand research, a disciplined due diligence process and its experience and understanding
of the infrastructure sector and the related risks, in order to select Private Infrastructure Opportunities that the team believes will
help it achieve the Fund's investment objective. The Real Assets Team pursues Private Infrastructure Opportunities as a means of dynamically
allocating capital and taking advantage of specific market opportunities. The Adviser believes that these opportunities can generate
incremental returns depending on the timing and quality of available opportunities.
The Fund may invest
up to 20% of its net assets in securities issued by companies that are not infrastructure companies. The Fund may also invest in debt
securities, which the Fund currently expects will consist primarily of short-term debt obligations, cash or cash equivalents at times
when deemed favorable by the Adviser.
The Fund intends
to achieve the income component of its investment objective by investing in dividend-paying listed equity securities and
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Private Infrastructure
Opportunities. Until the Fund is invested in Private Infrastructure Opportunities in accordance with its investment policies, up to 5%
of the Fund's total assets may be invested in accordance with a dividend capture strategy whereby the Fund may buy a security prior to
the record date of its dividend and sell such security after the record date of its dividend. See "Operational Risks – Portfolio
Turnover Risk," below.
Unless otherwise
stated herein or in the statement of additional information, the Fund's investment policies are non-fundamental policies and may be changed
by the Board without prior shareholder approval. The Fund's policy to invest at least 80% of its net assets (plus any borrowings for
investment purposes) in U.S. and non-U.S. infrastructure-related issuers may be changed by the Board without shareholder approval; however,
if this policy changes, the Fund will provide shareholders at least 60 days' written notice before implementation of the change in compliance
with SEC rules. Unless otherwise stated, these investment restrictions apply at the time of purchase; the Fund will not be required to
reduce a position due solely to market price fluctuations.
During the period
in which the Fund is investing the net proceeds of its offering, the Fund may deviate from its investment policies by investing the net
proceeds in money market mutual funds; cash; cash equivalents; securities issued or guaranteed by the U.S. government or its instrumentalities
or agencies; high quality, short-term money market instruments; short-term debt securities; certificates of deposit; bankers' acceptances
and other bank obligations; commercial paper or other liquid debt securities. Under adverse market or economic conditions, the Fund may
invest up to 100% of its total assets in these securities. In addition, immediately leading up to the date of the Fund's dissolution,
as described in its Declaration of Trust (the "Termination Date"), in connection with an Eligible Tender Offer (as defined
in the Fund's prospectus), the Fund may invest a significant portion of its assets in these securities on a temporary basis. To the extent
the Fund invests in these securities, the Fund may not achieve its investment objective.
INVESTMENT SECURITIES
The types of securities
in which the Fund may invest include, but are not limited to, the following:
Equity securities
Equity investments
generally represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities
provide different voting and dividend rights and priority in the event of an issuer's bankruptcy. Prices of equity securities fluctuate
for several reasons, including because of changes, or perceived changes, in the business, financial condition or prospects of the issuer
or because of changes
in financial or political conditions that may affect particular industries or the economy in general.
Common Stock.
Holders of common stock generally have voting rights with respect to the issuer, however, the Fund does not expect to have voting
control with respect to any of the issuers of listed equity securities in which it invests, and it will not have voting control with
respect to some or all of the Fund's private investments. Upon the liquidation or winding up of the issuer, holders of common stock are
entitled to the assets of the issuer that remain after satisfying all obligations owed to the issuer's creditors, including holders of
debt securities, and holders of the issuer's preferred stock. Holders of common stock also may receive dividends, however, unlike the
dividends payable with respect to preferred stock (which is described below), dividends payable with respect to common stock are not
fixed but are declared at the discretion of the issuer's board of directors.
Preferred Equity.
Upon the liquidation or winding up of the issuer, holders of preferred equity have a preference over holders of the issuer's common
equity, however, their claims to the assets of the issuer are subordinated to the claims of the issuer's creditors, including holders
of debt securities. Holders of preferred equity also receive distributions or dividends at a specified annual rate, although this rate
may be changed or omitted by the issuer under certain circumstances. Market prices of preferred equities generally fluctuate with changes
in market interest rates. Under normal conditions, holders of preferred equity usually do not have voting rights with respect to the
issuer.
Depositary Receipts.
Depositary receipts typically issued by a bank or trust company, represent the ownership of underlying securities that are issued
by a foreign company and held by the bank or trust company. American Depositary Receipts ("ADRs") are usually issued by a U.S.
bank trust or trust company and traded on a U.S. exchange. Global Depositary Receipts ("GDRs") may be issued by institutions
located anywhere in the world and traded in any securities market. European Depositary Receipts ("EDRs") are issued in Europe
and used in bearer form in European markets.
Depositary receipts
may or may not be jointly sponsored by the underlying issuer. The issuers of unsponsored depositary receipts are not obligated to disclose
information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers
and there may not be a correlation between such information and the market value of the depositary receipts. Certain depositary receipts
are not listed on an exchange and therefore may lack liquidity.
Restricted securities, including securities
of private companies
Restricted securities,
including Rule 144A securities and securities of private companies, are subject to statutory and/or contractual restrictions on resale.
However, such securities may be sold in private
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Additional Information Regarding the
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transactions with
a limited number of purchasers or in public offerings registered under the Securities Act. Restricted securities include (1) registered
securities of public companies subject to a lock-up period, (2) unregistered securities of public companies with registration rights,
(3) unregistered securities of public companies that become freely tradable with the passage of time and (4) unregistered securities
of private companies. A registered security subject to such a lock-up period will no longer be considered a restricted security upon
expiration of the lock-up period, an unregistered security of a public company with registration rights will no longer be considered
a restricted security when such securities become registered, and an unregistered security of a public company that becomes freely tradable
with the passage of time will no longer be considered a restricted security upon the elapse of the requisite time period.
Non-U.S. securities
The Fund may invest
without limit in securities issued by non-U.S. issuers. These securities may be issued by companies organized and/or having securities
traded on an exchange outside the U.S. or may be securities of U.S. companies that are denominated in the currency of a different country.
It is currently anticipated that, under normal circumstances, the Fund may invest up to 30% of its total assets in securities of emerging
market issuers.
Temporary investments
Pending investment
of the proceeds of the offering (which the Fund expects may take up to approximately one month following the closing of the offering),
the Fund may invest offering proceeds in money market mutual funds; cash; cash equivalents; securities issued or guaranteed by the U.S.
government or its instrumentalities or agencies; high quality, short-term money market instruments; short-term debt securities; certificates
of deposit; bankers' acceptances and other bank obligations; commercial paper or other liquid debt securities. The Fund also may invest
in these instruments on a temporary basis to meet working capital needs, including, but not limited to, for collateral in connection
with certain investment techniques, to hold a reserve pending payment of distributions and to facilitate the payment of expenses and
settlement of trades.
Under adverse market
or economic conditions, the Fund may invest up to 100% of its total assets in these securities on a temporary basis. In addition, immediately
leading up to the Termination Date, in connection with the Eligible Tender Offer, the Fund may invest a significant portion of its assets
in these securities on a temporary basis. To the extent the Fund invests in these securities, it may not achieve its investment objective.
The yield on these securities may be lower than the returns on equity securities or yields on lower rated debt securities.
Portfolio turnover
The Fund's annual
portfolio turnover rate may vary greatly from year to year. The Fund may engage in frequent and active trading of portfolio securities,
but does not intend to do so under normal circumstances. The Fund's portfolio turnover is expected to be higher during the initial 12-24
months following the closing of the offering as it transitions a portion of its publicly traded securities portfolio to Private Infrastructure
Opportunities.
Although the Fund's
portfolio turnover rate cannot be accurately predicted, following the completion of the Private Infrastructure Opportunities approximately
24 months following the closing of the offering, the Fund expects to maintain relatively low turnover of its core investment portfolio.
During its initial investment period, however, the Fund's annual turnover rate may exceed 100%. A high turnover rate involves greater
transaction costs for the Fund and may result in greater realization of taxable capital gains.
Allocation of investment opportunities
The portfolio managers'
management of other accounts may give rise to potential conflicts of interest in connection with their management of the Fund's investments,
on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same or similar investment
objective as the Fund. Therefore, a potential conflict of interest may arise as a result of the identical or similar investment objectives,
whereby a portfolio manager could favor one account over another. However, the Adviser believes that these risks are mitigated by the
fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar
fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences
in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential conflicts.
In addition, the Adviser and Sub-Adviser have adopted trade allocation procedures that require equitable allocation of trade orders for
a particular security among participating accounts.
In some cases, another
account managed by the same portfolio manager may compensate ASI based on the performance of the portfolio held by that account. The
existence of such a performance-based fee may create additional conflicts of interest for the portfolio manager in the allocation of
management time, resources and investment opportunities.
Another potential
conflict could include instances in which securities considered as investments for the Fund also may be appropriate for other investment
accounts managed by the Adviser or its affiliates. Whenever decisions are made to buy or sell securities by the Fund and one or more
of the other accounts simultaneously, the Adviser may aggregate the purchases and sales of the securities and will allocate
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Additional Information Regarding the
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the securities transactions in a manner that it believes to be equitable
under the circumstances. As a result of the allocations, there may be instances where the Fund will not participate in a transaction that
is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect on the price or amount
of the securities available to the Fund from time to time, it is the opinion of the Adviser that the benefits from the policies outweigh
any disadvantage that may arise from exposure to simultaneous transactions. The Fund has adopted policies that are designed to eliminate
or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies will detect each and every
situation in which a conflict arises.
The Adviser also has adopted written allocation procedures for transactions
involving private placement securities, which are designed to result in a fair and equitable participation in offerings or sales for participating
clients over time.
From time to time, the Adviser or the Sub-Adviser may seed proprietary
accounts for the purpose of evaluating a new investment strategy that eventually may be available to clients through one or more product
structures. Such accounts also may serve the purpose of establishing a performance record for the strategy. The management by the Adviser
and the Sub-Adviser of accounts with proprietary interests and nonproprietary client accounts may create an incentive to favor the proprietary
accounts in the allocation of investment opportunities, and the timing and aggregation of investments. The Adviser's and Sub-Adviser's
proprietary seed accounts may include long-short strategies, and certain client strategies may permit short sales. A conflict of interest
arises if a security is sold short at the same time as a long position, and continuous short selling in a security may adversely affect
the stock price of the same security held long in client accounts. The Adviser and Sub-Adviser have adopted various policies to mitigate
these conflicts.
Situations may occur when the Fund could be disadvantaged because of
the investment activities conducted by the Adviser, the Sub-Adviser and their affiliates for other accounts. Such situations may be based
on, among other things, the following: (1) legal or internal restrictions on the combined size of positions that may be taken for the
Fund or the other accounts, thereby limiting the size of the Fund's position; (2) the difficulty of liquidating an investment for the
Fund or the other accounts where the market cannot absorb the sale of the combined position; or (3) regulatory restrictions on transaction
with affiliates.
The 1940 Act and a rule thereunder impose limits on the Fund's ability
to participate in Co-Investment Opportunities, and the Fund generally will not be permitted to co-invest alongside other funds registered
under the 1940 Act and other accounts managed by the Adviser in privately negotiated transactions unless the Fund obtains an exemptive
order from the SEC or the transaction is otherwise permitted under
existing regulatory guidance, such as certain transactions in publicly
traded securities and transactions in which price is the only negotiated term. To the extent an investment opportunity in a transaction
involving the negotiation of any term of the investment other than price or quantity (a "negotiated transaction") arises, and
the Adviser determines that it would be appropriate for both the Fund and other accounts managed by the Adviser, the opportunity will
be allocated to the other accounts and the Fund will not participate in the negotiated transaction.
To the extent that the Adviser sources and structures private investments
in publicly traded issuers, certain employees of the Adviser may become aware of actions planned by such issuers, such as acquisitions,
which may not be announced to the public. It is possible that the Fund could be precluded from investing in or selling securities of an
issuer about which the Adviser has material, non-public information, however, it is the Adviser's intention to ensure that any material,
non-public information available to certain employees of the Adviser is not shared with the employees responsible for the purchase and
sale of publicly traded securities or to confirm prior to receipt of any material non-public information that the information will shortly
be made public. The Fund's investment opportunities also may be limited by affiliations of the Adviser, the Sub-Adviser or their affiliates
with infrastructure companies.
The Adviser, the Sub-Adviser and their respective principals, officers,
employees and affiliates may buy and sell securities or other investments for their own accounts and may have actual or potential conflicts
of interest with respect to investments made on the Fund's behalf. As a result of differing trading and investment strategies or constraints,
positions may be taken by principals, officers, employees and affiliates of the Adviser and the Sub-Adviser that are the same as, different
from or made at a different time from positions taken for the Fund. Further, the Adviser and the Sub-Adviser may at some time in the future,
manage additional investment funds with the same investment objective as the Fund. See "Operational Risks – Potential Conflicts
of Interest," below.
Hedging and risk management
The Fund may utilize derivative instruments for hedging and risk management
purposes. In particular, the Fund may use foreign currency contracts to hedge currency exposure from time to time, but it is not required
to hedge its currency exposure.
Risk Factors
The Fund is designed as a long-term investment vehicle and not as a trading
tool. An investment in the Fund's common shares should not constitute a complete investment program for any investor and involves a high
degree of risk. Due to the uncertainty in all investments, there can be no assurance that the Fund will achieve its investment
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Additional Information Regarding the
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objective. The value of an investment in the Fund's common shares could
decline substantially and cause you to lose some or all of your investment. Before investing in the Fund's common shares you should consider
carefully the following principal risks of investing in the Funds.
General
Management Risk. The Fund's ability to achieve its investment
objective is directly related to the Adviser's and the Sub-Adviser's investment strategies for the Fund. The value of your investment
in the Fund's common shares may vary with the effectiveness of the research and analysis conducted by the Adviser and the Sub-Adviser
and their ability to identify and take advantage of attractive investment opportunities. If the investment strategies of the Adviser and
the Sub-Adviser do not produce the expected results, the value of your investment could be diminished or even lost entirely, and the Fund
could underperform the market or other funds with similar investment objectives. Additionally, there can be no assurance that all of the
personnel of the Adviser and the Sub-Adviser will continue to be associated with the Adviser or Sub-Adviser for any length of time. The
loss of the services of one or more key employees of the Adviser or Sub-Adviser could have an adverse impact on the Fund's ability to
realize its investment objective.
Asset Allocation Risk. The Fund's investment performance depends,
at least in part, on how the Adviser allocates and reallocates the Fund's assets among the various asset classes and security types in
which the Fund may invest. Such allocation decisions could cause the Fund's investments to be allocated to asset classes and security
types that perform poorly or underperform other asset classes and security types or available investments.
Non-Diversified Risk. The Fund is classified as a "non-diversified"
investment company under the 1940 Act. Therefore, the Fund may invest a relatively high percentage of its assets in a smaller number of
issuers or may invest a larger proportion of its assets in a single issuer than a diversified fund. As a result, the Fund may be more
susceptible than a diversified fund to any single corporate, political, geographic or regulatory occurrence.
Limited Term and Tender Offer Risk. The Fund is scheduled to dissolve
as of the Termination Date. The Fund's investment policies are not designed to return to common shareholders their original net asset
value or purchase price. The final distribution to common shareholders on the Termination Date and the amount paid to participating common
shareholders upon completion of an Eligible Tender Offer will be based upon the Fund's net asset value at such time. Depending on a variety
of factors, including the performance of the Fund's investment portfolio over the period of its operations, the amount distributed to
common shareholders in connection with its termination or paid to participating common shareholders upon completion of an Eligible Tender
Offer may be less, and potentially significantly less, than your original
investment. Additionally, although tendering shareholders will receive
an amount equal to net asset value for their shares in an Eligible Tender Offer, given the nature of certain of the Fund's investments,
the Fund's net asset value may be impacted by the sale of such investments and, as a result, the amount actually distributed upon the
Fund's termination may be less than the Fund's net asset value per share on the Termination Date, and the amount actually paid upon completion
of an Eligible Tender Offer may be less than the Fund's net asset value per share on the expiration date of the Eligible Tender Offer.
Because the Fund's assets will be liquidated in connection with its termination
or to pay for common shares tendered in an Eligible Tender Offer, the Fund may be required to sell portfolio securities when it otherwise
would not, including at times when market conditions are not favorable, which may cause the Fund to lose money. Given the nature of certain
of the Fund's investments, particularly the Private Infrastructure Opportunities, the Fund may be unable to liquidate certain of its investments
until well after the Termination Date. In this case, the Fund may make one or more additional distributions after the Termination Date
of any cash received from the ultimate liquidation of those investments. This would delay distribution payments, perhaps for an extended
period of time, and there can be no assurance that the total value of the cash distribution made on the Termination Date and such subsequent
distributions, if any, will equal the Fund's net asset value on the Termination Date, depending on the ultimate results of such post-Termination
Date asset liquidations. If, as a result of lack of market liquidity or other adverse market conditions, the Board of Trustees determines
it is in the best interest of the Fund, the Fund may transfer any illiquid portfolio investments that remain unsold on the Termination
Date to a liquidating trust and distribute interests in such liquidating trust to common shareholders as part of its final distribution.
The liquidating trust, if used, would be a separate entity from the Fund and, in reliance on Section 7 of the 1940 Act, would not be a
registered investment company under the 1940 Act. Interests in the liquidating trust are expected to be nontransferable, except by operation
of law. The sole purpose of the liquidating trust would be to hold illiquid investments of the Fund that were unable to be sold and to
dispose of such investments. As such investments are sold over time by the liquidating trust, the liquidating trust would distribute cash
to its shareholders. There can be no assurance as to the timing of or the value obtained from the liquidation of any investments transferred
to a liquidating trust.
The obligation to terminate on the Termination Date also may impact adversely
the implementation of the Fund's investment strategies. There can be no assurance that the Adviser and the Sub-Adviser will be successful
in their efforts to minimize any detrimental effects on the Fund's investment performance caused by the Fund's obligation to liquidate
its investment portfolio and distribute all of its liquidated net
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assets to common
shareholders of record on the Termination Date. In particular, the Adviser and the Sub-Adviser may face difficulties exiting the Private
Infrastructure Opportunities on or prior to the Termination Date at favorable prices, if at all. In addition, as the Fund approaches
the Termination Date, the Fund may invest the proceeds of sold, matured or called securities in money market mutual funds; cash; cash
equivalents; securities issued or guaranteed by the U.S. government or its instrumentalities or agencies; high quality, short-term money
market instruments; short-term debt securities; certificates of deposit; bankers' acceptances and other bank obligations; commercial
paper or other liquid debt securities, which may adversely affect the Fund's investment performance. In the course of the liquidation,
the Fund must continue to satisfy the asset diversification requirements to qualify as a RIC for federal income tax purposes, which may
also have a negative effect on the Fund's investment performance. If the Fund fails to comply with these requirements, it may be liable
for federal income tax in the year of the liquidation. Moreover, rather than reinvesting the proceeds of sold, matured or called securities,
the Fund may distribute the proceeds in one or more liquidating distributions prior to the final liquidation, which may cause fixed expenses
to increase when expressed as a percentage of its total assets.
If the Fund conducts
an Eligible Tender Offer, it anticipates that funds to pay the aggregate purchase price of common shares accepted for purchase pursuant
to the tender offer will be first derived from any cash on hand and then from the proceeds from the sale of portfolio investments. In
addition, the Fund may be required to dispose of portfolio investments in connection with any reduction in any outstanding leverage necessary
in order to maintain its desired leverage ratios following an Eligible Tender Offer. The risks related to the disposition of portfolio
investments in connection with the Fund's termination also would be present in connection with the disposition of portfolio investments
in connection with an Eligible Tender Offer. It is likely that during the pendency of an Eligible Tender Offer, and possibly for a time
thereafter, the Fund will hold a greater than normal percentage of its total assets in money market mutual funds; cash; cash equivalents;
securities issued or guaranteed by the U.S. government or its instrumentalities or agencies; high quality, short-term money market instruments;
short-term debt securities; certificates of deposit; bankers' acceptances and other bank obligations; commercial paper or other liquid
debt securities, which may adversely affect its investment performance. If the Fund's tax basis for the portfolio investments sold is
less than the sale proceeds, the Fund will recognize capital gains, which it will be required to distribute to common shareholders. In
addition, the Fund's purchase of tendered common shares pursuant to an Eligible Tender Offer will have tax consequences for tendering
common shareholders and may have tax consequences for non-tendering common shareholders. The purchase of common shares pursuant to an
Eligible Tender Offer will have the
effect of increasing
the proportionate interest in the Fund of non-tendering common shareholders. All shareholders remaining after an Eligible Tender Offer
will be subject to proportionately higher expenses due to the reduction in the Fund's total assets resulting from payment for the tendered
common shares. Such reduction in the Fund's total assets also may result in less investment flexibility, reduced diversification and
greater volatility for the Fund, and may have an adverse effect on the Fund's investment performance.
The Fund is not
required to conduct an Eligible Tender Offer. If the Fund conducts an Eligible Tender Offer, there can be no assurance that the number
of tendered common shares would not result in the Fund's net assets totaling less than the Termination Threshold, in which case the Eligible
Tender Offer will be terminated, no common shares will be repurchased pursuant to the Eligible Tender Offer and the Fund will terminate
on the Termination Date subject to permitted extensions. Following the completion of an Eligible Tender Offer in which the number of
tendered common shares would result in the Fund's net assets totaling greater than the Termination Threshold, the Board of Trustees may
eliminate the Termination Date upon the affirmative vote of a majority of the Board of Trustees and without a vote of the shareholders.
Thereafter, the Fund will have a perpetual existence. The Adviser may have a conflict of interest in recommending to the Board of Trustees
that the Termination Date be eliminated and the Fund have a perpetual existence. The Fund is not required to conduct additional tender
offers following an Eligible Tender Offer and conversion to perpetual existence. Therefore, remaining common shareholders may not have
another opportunity to participate in a tender offer. Shares of closed-end management investment companies frequently trade at a discount
from their net asset value, and as a result remaining common shareholders may only be able to sell their common shares at a discount
to net asset value. See "– Operational Risks – Market Discount Risk."
Infrastructure-related investments
risk
Infrastructure-related
issuers may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs
in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects
of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability
of fuel at reasonable prices, the effects of energy conservation policies and other factors. The following is a summary of specific risks
that infrastructure-related issuers may be particularly affected by or subject to:
Regulatory Risk.
Infrastructure-related issuers may be subject to regulation by various governmental authorities and may also be affected by governmental
regulation of rates charged to services, the
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imposition of special
tariffs and changes in tax laws, environmental laws and regulations, regulatory policies, accounting standards and general changes in
market sentiment towards infrastructure assets. Infrastructure-related issuers' inability to predict, influence or respond appropriately
to changes in law or regulatory schemes could adversely impact their results of operations.
Technology Risk.
This risk arises where a change could occur in the way a service or product is delivered rendering the existing technology obsolete.
If such a change were to occur, these assets may have very few alternative uses should they become obsolete.
Developing Industries
Risk. Some infrastructure-related issuers are focused on developing new technologies and are strongly influenced by technological
changes. Product development efforts by such issuers may not result in viable commercial products. These issuers may bear high research
and development costs, which can limit their ability to maintain operations during periods of organizational growth or instability. Some
infrastructure-related issuers in which the Fund invests may be in the early stages of operations and may have limited operating histories
and smaller market capitalizations on average than issuers in other sectors. As a result of these and other factors, the value of investments
in such issuers may be considerably more volatile than that in more established segments of the economy.
Regional or Geographic
Risk. This risk arises where an infrastructure-related issuer's assets are not movable. Should an event that somehow impairs the
performance of an infrastructure-related issuer's assets occur in the geographic location where the issuer operates those assets, the
performance of the issuer may be adversely affected.
Natural Disasters
Risk. Natural risks, such as earthquakes, flood, lightning, hurricanes and wind, are risks facing certain infrastructure-related
issuers. Extreme weather patterns, or the threat thereof, could result in substantial damage to the facilities of certain issuers located
in the affected areas, and significant volatility in the products or services of infrastructure-related issuers could adversely impact
the prices of the securities of such issuer.
Volume Risk.
The revenue of many infrastructure – related issuers may be impacted by the number of users who use the products or services
produced by the infrastructure-related issuer. A significant decrease in the number of users may negatively impact the profitability
of an infrastructure-related issuer.
Environmental
Risk. Infrastructure-related issuers can have substantial environmental impacts. Ordinary operations or operational accidents may
cause major environmental damage, which could cause infrastructure-related issuers significant financial distress, substantial liabilities
for environmental cleanup and restoration costs, claims made by neighboring landowners and other third parties for personal injury
and property damage,
and fines or penalties for related violations of environmental laws or regulations. Infrastructure-related issuers may not be able to
recover these costs from insurance. Failure to comply with environmental laws and regulations may trigger a variety of administrative,
civil and criminal enforcement measures, including the assessment of monetary penalties, the imposition of remedial requirements, and
the issuance of orders enjoining future operations. Voluntary initiatives and mandatory controls have been adopted or are being discussed
both in the United States and worldwide to reduce emissions of "greenhouse gases" such as carbon dioxide, a by-product of burning
fossil fuels, and methane, the major constituent of natural gas, which many scientists and policymakers believe contribute to global
climate change. These measures and future measures could result in increased costs to certain companies in which the Fund may invest.
Project Risk.
To the extent the Fund invests in infrastructure-related issuers which are dependent to a significant extent on new infrastructure
projects, the Fund may be exposed to the risk that the project will not be completed within budget, within the agreed time frame or to
agreed specifications.
Strategic Asset
Risk. Infrastructure-related issuers may control significant strategic assets. Strategic assets are assets that have a national or
regional profile, and may have monopolistic characteristics. Given the national or regional profile and/or their irreplaceable nature,
strategic assets may constitute a higher risk target for terrorist acts or political actions. There is also a higher probability that
the services provided by such issuers will be in constant demand. Should an infrastructure-related issuer fail to make such services
available, users of such services may incur significant damage and may be unable to mitigate any such damage, thereby heightening any
potential loss.
Operation Risk.
The long-term profitability of an infrastructure-related issuer may be partly dependent on the efficient operation and maintenance
of its infrastructure assets. Should an infrastructure-related issuer fail to efficiently maintain and operate the assets, the infrastructure-related
issuer's ability to maintain payments of dividends or interest to investors may be impaired. The destruction or loss of an infrastructure
asset may have a major impact on the infrastructure-related issuer. Failure by the infrastructure-related issuer to carry adequate insurance
or to operate the asset appropriately could lead to significant losses and damages.
Customer Risk.
Infrastructure-related issuers can have a narrow customer base. Should these customers or counterparties fail to pay their contractual
obligations, significant revenues could cease and not be replaceable. This would affect the profitability of the infrastructure-related
issuer and the value of any securities or other instruments it has issued.
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Additional Information Regarding the
Fund (unaudited) (continued)
Interest Rate
Risk. Infrastructure assets can be highly leveraged. As such, movements in the level of interest rates may affect the returns from
these assets more significantly than other assets. Due to the nature of infrastructure assets, the impact of interest rate fluctuations
may be greater for infrastructure-related issuers than for the economy as a whole.
Inflation Risk.
Many infrastructure-related issuers may have fixed income streams and, therefore, be unable to pay higher dividends. The market value
of infrastructure-related issuers may decline in value in times of higher inflation rates. The prices that an infrastructure-related
issuer is able to charge users of its assets may not always be linked to inflation. In this case, changes in the rate of inflation may
affect the forecast profitability of the infrastructure-related issuer.
Financing Risk.
From time to time, infrastructure-related issuers may encounter difficulties in obtaining financing for construction programs during
inflationary periods. Issuers experiencing difficulties in financing construction programs may also experience lower profitability, which
can result in reduced income to the Fund.
Other factors that
may affect the operations of infrastructure-related issuers include difficulty in raising capital in adequate amounts on reasonable terms
in periods of high inflation and unsettled capital markets, inexperience with and potential losses resulting from a developing deregulatory
environment, increased susceptibility to terrorist acts or political actions, and general changes in market sentiment towards infrastructure
assets.
In addition, as
discussed more fully below under "– Industry Specific Risks," infrastructure-related issuers are subject to risks that
are specific to the industry in which they operate. Certain of these industries have been impacted, or may be impacted in the future,
by COVID-19. In particular, the transportation industry and certain portions of the energy industry have been negatively impacted by
restrictions on travel and related declines in the price of oil. Other infrastructure industries have shown resilience in light of COVID-19,
for example, communications and necessary assets, such as utilities; however, there is no guarantee as to how these industries, or the
Fund's investments generally, will perform in the future. The Adviser intends to monitor developments and seek to manage the Fund's portfolio
in a manner consistent with achieving the Fund's investment objective, but there can be no assurance that it will be successful in doing
so. For more information about risks related to COVID-19, see "– Recent Events Risk."
Industry specific risks
The following is
a summary of industry specific risks that infrastructure-related issuers may be particularly affected by or subject to:
Utility Sector
Risk. When interest rates go up, the value of securities issued by utilities companies historically has gone down. In most countries
and localities, the utilities sector is regulated by governmental entities, which can increase costs and delays for new projects and
make it difficult to pass increased costs on to consumers. In certain areas, deregulation of utilities has resulted in increased competition
and reduced profitability for certain companies, and increased the risk that a particular company will become bankrupt or fail completely.
Reduced profitability, as well as new uses for or additional need of funds (such as for expansion, operations or stock buybacks), could
result in reduced dividend payout rates for utilities companies. In addition, utilities companies face the risk of increases in the cost
and reduced availability of fuel (such as oil, coal, natural gas or nuclear energy) and potentially high interest costs for borrowing
to finance new projects.
Communications
Sector Risk. The communications sector is subject to extensive government regulation. The costs of complying with governmental regulations,
delays or failure to receive required regulatory approvals, or the enactment of new regulatory requirements may negatively affect the
business of communications companies. Government actions around the world can be arbitrary and unpredictable. Companies in the communications
sector may encounter distressed cash flows due to the need to commit substantial capital to meet increasing competition, particularly
in developing new products and services using new technology. Technological innovations may make the products and services of certain
communications companies obsolete. Communications providers are generally required to obtain franchises or licenses in order to provide
services in a given location. Licensing and franchise rights in the communications sector are limited, which may provide an advantage
to certain participants. Limited availability of such rights, high barriers to market entry and regulatory oversight, among other factors,
have led to consolidation of companies within the sector, which could lead to further regulation or other negative effects in the future.
Transportation
Infrastructure Sector Risk. Issuers in the transportation infrastructure sector can be significantly affected by economic changes,
fuel prices, labor relations, technology developments, exchange rates, industry competition, insurance costs and deteriorating public
infrastructure, such as bridges, roads, rails, ports and airports. Transportation companies in certain countries may also be subject
to significant government regulation and oversight, which may adversely affect their businesses. Other risk factors that may affect the
transportation infrastructure sector include the risk of increases in fuel and other operating costs and the effects of regulatory changes
or other government decisions. Companies in the transportation infrastructure sector may be adversely affected by adverse weather, pandemics,
acts of terrorism or catastrophic events, such as air
Aberdeen Standard Global Infrastructure Income
Fund
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Additional Information Regarding the
Fund (unaudited) (continued)
accidents, train
crashes or tunnel fires. Most recently, the transportation infrastructure sector was negatively impacted by COVID-19 and the resulting
restrictions on travel. Companies in the transportation infrastructure sector may also be subject to the risk of widespread disruption
of technology systems and increasing equipment and operational costs.
Energy Infrastructure
Sector Risk. The Fund is subject to adverse economic, environmental, business, regulatory or other occurrences affecting the energy
infrastructure sector. The energy infrastructure sector has historically experienced substantial price volatility. Most recently, the
energy infrastructure sector was negatively impacted by reduced demand for oil and other energy commodities and resulting declines in
commodity prices as a result of the slowdown in economic activity resulting from the pandemic spread of COVID-19 and by price competition
among key oil-producing countries. Companies operating in the energy infrastructure sector are subject to specific risks that could cause
the value of the Fund to decline, including, among others: fluctuations in commodity prices; fluctuations in consumer demand for commodities
such as oil, natural gas or petroleum products; fluctuations in the supply of oil, natural gas or other commodities for transporting,
processing, storing or delivering; slowdowns in new construction; extreme weather or other natural disasters; pandemics; and threats
of terrorist attacks. Additionally, changes in economic conditions of key energy producing and consuming countries, domestic and foreign
government regulations, international politics, policies of the Organization of Petroleum Exporting Countries (OPEC), taxation and tariffs
may adversely impact the profitability of energy infrastructure companies. Moreover, energy infrastructure companies may incur environmental
costs and liabilities due to the nature of their businesses and substances handled. Over time, depletion of natural gas reserves and
other energy reserves may also affect the profitability of energy infrastructure companies.
Social Assets
Sector Risk. Social infrastructure assets are those that accommodate social services, including, for example, courthouses, hospitals,
schools, correctional facilities, stadiums and subsidized housing. Social assets are subject to additional risks to those of other investments
in the infrastructure sector, such as political, regulatory and social risks. Most social infrastructure assets generate fixed cash flows
based on the regulatory framework set by the governments that operate the projects. Social infrastructure projects may operate as public-private
partnerships. Ambiguous risk-sharing arrangements between private capital providers and government entities can increase the risks related
to future liabilities of social infrastructure projects.
Market events risk
The market values
of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall
economic trends or events, governmental
actions or intervention,
actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political
developments, investor sentiment and other factors that may or may not be related to the issuer of the security or other asset. Economies
and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff
arrangements, terrorism, natural disasters and other circumstances in one country or region could have profound impacts on global economies
or markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries
directly affected, the value and liquidity of the Fund's investments may be negatively affected. In addition, any spread of an infectious
illness, public health threat or similar issue could reduce consumer demand or economic output, result in market closures, travel restrictions
or quarantines, and generally have a significant impact on the world economy, which in turn could adversely affect the Fund's investments.
Recent events risk.
COVID-19.
Beginning in the first quarter of 2020, the illness caused by a novel coronavirus, COVID 19, has resulted in a global pandemic and major
disruption to economies and markets around the world, including the United States. Financial markets have experienced extreme volatility
and severe losses. Some sectors of the economy and individual issuers have experienced particularly large losses. 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.
To the extent the impacts of COVID-19 continue, the Fund may experience negative impacts to its business that could exacerbate other
risks described in this prospectus, including:
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•
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significant mark-downs in the
fair value of the Fund's investments and decreases in NAV per share;
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•
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the Fund's investments may require
a workout, restructuring, recapitalization or reorganizations that involve additional investment from the Fund and/or that result in
greater risks and losses to the Fund;
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•
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operational impacts on and availability
of key personnel of the Adviser, Sub-Adviser, custodian, and/or any of the Fund's other third-party service providers, vendors and counterparties
as they face changed circumstances and/or illness related to the pandemic;
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•
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difficulty in valuing the Fund's
assets in light of significant changes in the financial markets, including difficulty in forecasting discount rates and making market
comparisons, and circumstances affecting the Adviser, Sub-Adviser, and the Fund's service providers' personnel during the pandemic;
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Aberdeen
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Additional Information Regarding the
Fund (unaudited) (continued)
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significant changes to the valuations of pending or prospective
investments; and
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•
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limitations on the Fund's ability to make distributions or dividends,
as applicable, to the Fund's common shareholders.
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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, 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.
Europe Related
Risk. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers,
and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties
obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support,
have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere
have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within
and outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures
and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences.
Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial
markets and asset valuations around the world.
In addition, the
United Kingdom left the European Union on January 31, 2020 ("Brexit"). The ongoing negotiations surrounding the future relationship
between the UK and the EU following UK's exit from the EU have yet to provide clarity on what the outcome will be for the UK, Europe,
and the worldwide economy. During a prescribed period (the "Transition Period"), which ended on December 31, 2020, certain
transitional arrangements were in effect, such that the United Kingdom continued to be treated, in most respects, as if it were still
a member of the European Union, and generally remained subject to European Union law. On December 24, 2020, the European Union and the
United Kingdom reached an agreement in principle on the terms of certain agreements and declarations governing the ongoing relationship
between the European Union and the United Kingdom, including the
European Union-United
Kingdom Trade and Cooperation Agreement (the "TCA"). The TCA is limited in its scope primarily to the trade of goods, transport,
energy links and fishing; in particular the TCA does not make any meaningful provision for the financial services sector. Uncertainties
remain relating to certain aspects of the United Kingdom's future economic, trading and legal relationships with the European Union and
with other countries. However, the EU has not yet provided much material cushion from the effects of Brexit for financial services as
a matter of EU law. The TCA has been provisionally applied since January 1, 2021 but cannot formally enter into force until ratified
by the European Parliament. In the event that the European Parliament does not ratify the TCA before February 28, 2021, the relationship
between the United Kingdom and the EU would be based on the World Trade Organization rules. Even under the TCA, many aspects of the United
Kingdom-EU trade relationship remain subject to further negotiation. Due to political uncertainty, it is not possible to anticipate the
form or nature of the future trading relationship between the United Kingdom and the EU. The Fund may face risks associated with the
potential uncertainty and consequences that may follow Brexit, including with respect to potential volatility in exchange rates and interest
rates. Whether or not the Fund invests in securities of issuers located in Europe (whether the EU, Eurozone or UK) or with significant
exposure to European, EU, Eurozone or UK issuers or countries, the unavoidable uncertainties and events related to Brexit could negatively
affect the value and liquidity of the Fund's investments, increase taxes and costs of business and cause volatility in currency exchange
rates and interest rates. Brexit could adversely affect the performance of contracts and European, UK or worldwide political, regulatory,
economic or market conditions and could contribute to instability in political institutions, regulatory agencies and financial markets.
Brexit could also lead to legal uncertainty and politically divergent national laws and regulations as a new relationship between the
UK and EU is defined and the UK determines which EU laws to replace or replicate. Any of these effects of Brexit, and others that cannot
be anticipated, could adversely affect the Fund's business, results of operations and financial condition. In addition, the risk that
Standard Life Aberdeen plc, the parent of the companies that provide investment advisory, sub-advisory and administration services to
the Fund and which is headquartered in the UK, fails to adequately respond to Brexit could have significant customer, reputation and
capital impacts for Standard Life Aberdeen plc and its subsidiaries, including those providing services to the Fund; however, Standard
Life Aberdeen plc has detailed contingency planning in place to seek to manage the consequences of Brexit on the Fund and to manage any
disruption to the Fund and to the services its subsidiaries provide. Given the fluidity and complexity of the situation, however, it
cannot assured that the Fund will not be adversely impacted despite preparations.
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Aberdeen Standard Global Infrastructure Income Fund
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Additional Information Regarding the
Fund (unaudited) (continued)
Equity securities risk
Equity Securities
Risk, Including Common Stock Risk. Market prices of common stocks and other equity securities may be affected by macroeconomic and
other factors affecting the stock market in general, including changes in financial or political conditions that may affect particular
industries or the economy in general and changes in investor sentiment. Prices of equity securities of individual issuers also can be
affected by fundamentals unique to the issuer, including changes, or perceived changes, in the issuer's business, financial condition
or prospects, and may fall to zero in the event of the issuer's bankruptcy. Equity security prices have historically experienced periods
of significant volatility, particularly during recessions or other periods of financial stress, and can be expected to experience significant
volatility in the future. The equity securities the Fund holds may undergo sudden, unpredictable drops in price or long periods of price
decline. There can be no assurance that the level of dividends paid with respect to the dividend paying equity securities in which the
Fund invests will be maintained.
Small- and Mid-Capitalization
Company Risk. Investing in equity securities of small-capitalization and mid-capitalization companies may involve greater risks than
investing in equity securities of larger, more established companies. Small-capitalization and mid-capitalization companies generally
have limited product lines, markets and financial resources. Their equity securities may trade less frequently and in more limited volumes
than the equity securities of larger, more established companies. Also, small-capitalization and mid-capitalization companies are typically
subject to greater changes in earnings and business prospects than larger companies. As a result, the market prices of their equity securities
may experience greater volatility and may decline more than those of large-capitalization companies in market downturns.
Preferred Equity
Risk. The right of a holder of an issuer's preferred equity to distributions, dividends and liquidation proceeds is junior to the
rights of the issuer's creditors, including holders of debt securities. Market prices of preferred equities may be subject to factors
that affect debt and equity securities, including changes in market interest rates and changes, or perceived changes, in the issuer's
creditworthiness. Holders of preferred equity may suffer a loss of value if distribution or dividend rates are reduced or distributions
or dividends are not paid. Under normal conditions, holders of preferred equity usually do not have voting rights with respect to the
issuer. The ability of holders of preferred equity to participate in the issuer's growth may be limited.
Other investment risks
Dividend Strategy
Risk. There is no guarantee that the issuers of the securities held by the Fund will declare dividends in the future or that, if
dividends are declared, they will remain at their current levels or increase over time. The Fund's emphasis on dividend paying securities
could cause the
Fund to underperform similar funds that invest without consideration of a company's track record of paying dividends or ability to pay
dividends in the future. Dividend paying securities may not participate in a broad market advance to the same degree as other securities,
and a sharp rise in interest rates or an economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. With
respect to the Adviser's dividend recapture strategy, the Fund may hold securities for short periods of time related to the dividend
payment periods and may experience loss during these periods.
Liquidity Risk.
The Fund's investments in Private Infrastructure Opportunities will be highly illiquid, and the Fund will likely be able to sell
such securities only in private transactions with another investor or group of investors, and there can be no assurance that the Fund
will be able to successfully arrange such transactions if and when it desires to sell any of its Private Infrastructure Opportunities
or, if successfully arranged, that it will be able to obtain favorable values upon the sale of the Private Infrastructure Opportunities
in such transactions.
With respect to
the Fund's investments in listed equity securities, the Fund may invest in securities of any market capitalization, including small-
and mid-capitalization companies, and may be exposed to liquidity risk when trading volume, lack of a market maker, or legal restrictions
impair its ability to sell particular securities or close call option positions at an advantageous price or a timely manner. Small- and
mid-capitalization companies may be more volatile and more likely than large-capitalization companies to have narrower product lines,
fewer financial resources, less management depth and experience and less competitive strength. In the event certain securities experience
limited trading volumes, the prices of such securities may display abrupt or erratic movements at times. These securities may be difficult
to sell at a favorable price at the times when the Fund believes it is desirable to do so.
Private Company
Securities Risk. The Fund's investments in private companies may be subject to higher risk than investments in securities of public
companies. Private companies, unlike public companies, are generally not subject to SEC reporting requirements, are not required to maintain
their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal
controls over financial reporting. As a result, the Fund will be required to rely on the ability of the Adviser and Sub-Adviser to obtain
adequate information to evaluate the potential risks and returns involved in investing in these issuers. The Adviser and Sub-Adviser,
however, may not have timely or accurate information about the business, financial condition and results of operations of the private
companies in which the Fund invests and there is risk that the Fund may invest on the basis of incomplete or inaccurate information,
which may adversely affect the Fund's investment performance. Private
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Aberdeen
Standard Global Infrastructure Income Fund
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Additional Information Regarding the
Fund (unaudited) (continued)
companies in which
the Fund may invest may have limited financial resources, shorter operating histories, more asset concentration risk, narrower product
lines and smaller market shares than larger businesses, which tend to render such private companies more vulnerable to competitors' actions
and market conditions, as well as general economic downturns. These companies generally have less predictable operating results, may
from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk
of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive
position. These companies may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability
to grow or to repay their outstanding indebtedness upon maturity. In addition, the Fund's investment also may be structured as pay-in-kind
securities with minimal or no cash interest or dividends until the company meets certain growth and liquidity objectives. These factors
could subject the Fund to greater risk than investments in securities of public companies and negatively affect the Fund's investment
returns, which could negatively impact the dividends paid to you and the value of your investment. Typically, investments in private
companies are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that the
Fund may not be able to resell some of its holdings for extended periods, which may be several years. The Fund will likely be able to
sell its investments in private companies only in private transactions with another investor or group of investors, and there can be
no assurance that the Fund will be able to successfully arrange such transactions if and when it desires to sell any of its investments
in private companies or, if successfully arranged, that the Fund will be able to obtain favorable values upon the sale of its investments
in private companies in such transactions.
Private Company
Management Risk. Private companies are more likely to depend on the management talents and efforts of a small group of persons; therefore,
the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on the company.
The Fund generally does not intend to hold controlling positions in the private companies in which it invests. As a result, the Fund
is subject to the risk that a company may make business decisions with which the Fund disagrees, and that the management and/or stockholders
of a portfolio company may take risks or otherwise act in ways that are adverse to the Fund's interests. Due to the lack of liquidity
of such private investments, the Fund may not be able to dispose of its investments in the event it disagrees with the actions of a private
portfolio company and may therefore suffer a decrease in the value of the investment.
Private Company
Illiquidity Risk. Securities issued by private companies are typically illiquid. If there is no readily available trading market
for
privately issued
securities, the Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could
sell them if they were more widely traded.
Private Company
Valuation Risk. There is typically not a readily available market value for the Fund's private investments. The Fund values private
company investments in accordance with valuation guidelines adopted by the Board, that the Board, in good faith, believes are designed
to accurately reflect the fair value of securities valued in accordance with such guidelines. The Fund is not required to but may utilize
the services of one or more independent valuation firms to aid in determining the fair value of these investments. Valuation of private
company investments may involve application of one or more of the following factors: (i) analysis of valuations of publicly traded companies
in a similar line of business, (ii) analysis of valuations for comparable merger or acquisition transactions, (iii) yield analysis and
(iv) discounted cash flow analysis. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that
do not have a readily available market value, the fair value of the Fund's private investments may differ significantly from the values
that would have been used had a readily available market value existed for such investments and may differ materially from the amounts
the Fund may realize on any dispositions of such investments. In addition, the impact of changes in the market environment and other
events on the fair values of the Fund's investments that have no readily available market values may differ from the impact of such changes
on the readily available market values for the Fund's other investments. The Fund's NAV could be adversely affected if the Fund's determinations
regarding the fair value of the Fund's investments were materially higher than the values that the Fund ultimately realizes upon the
disposal of such investments.
Reliance on the
Adviser Risk. The Fund may enter into private investments identified by the Adviser, in which case the Fund will be more reliant
upon the ability of the Adviser to identify, research, analyze, negotiate and monitor such investments than is the case with investments
in publicly traded securities. As little public information exists about many private companies, the Fund will be required to rely on
the Adviser's diligence efforts to obtain adequate information to evaluate the potential risks and returns involved in investing in these
companies. The costs of diligencing, negotiating and monitoring private investments will be borne by the Fund, which may reduce the Fund's
returns.
Co-Investment
Risk. The Fund may also co-invest in private investments sourced by third party investors unaffiliated with either the Fund or the
Adviser, such as private equity firms. The Fund's ability to realize a profit on such investments will be particularly reliant on the
expertise of the lead investor in the transaction. To the extent that the lead investor in such a co-investment opportunity assumes control
of the management of the private company, the Fund will be reliant
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Aberdeen Standard Global Infrastructure Income Fund
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Additional Information Regarding the
Fund (unaudited) (continued)
not only upon the
lead investor's ability to research, analyze, negotiate and monitor such investments, but also on the lead investor's ability to successfully
oversee the operation of the company's business. The Fund's ability to dispose of such investments is typically severely limited, both
by the fact that the securities are unregistered and illiquid and by contractual restrictions that may preclude the Fund from selling
such investments. Often the Fund may exit such investment only in a transaction, such as an initial public offering or sale of the company,
on terms arranged by the lead investor. Such investments may be subject to additional valuation risk, as the Fund's ability to accurately
determine the fair value of the investments may depend upon the receipt of information from the lead investor. The valuation assigned
to such an investment through application of the Fund's valuation procedures may differ from the valuation assigned to that investment
by other co-investors.
Private Company
Competition Risk. Many entities may potentially compete with the Fund in making private investments. Some of these competitors are
substantially larger and have considerably greater financial, technical and marketing resources than the Fund. Some competitors may have
a lower cost of funds and access to funding sources that are not available to the Fund. In addition, some competitors may have higher
risk tolerances or different risk assessments, which could allow them to consider a wider variety of, or different structures for, private
investments than the Fund. Furthermore, some competitors are not subject to the regulatory restrictions that the 1940 Act imposes on
the Fund. As a result of this competition, the Fund may not be able to pursue attractive private investment opportunities from time to
time.
Affiliation Risk. There is a risk that the Fund may be precluded from investing in certain private companies due to regulatory implications under the
1940 Act or other laws, rules or regulations or may be limited in the amount it can invest in the voting securities of a private company,
in the size of the economic interest it can have in a private company or in the scope of influence it is permitted to have in respect
of the management of a private company. Should the Fund be required to treat a private company in which it has invested as an "affiliated
person" under the 1940 Act, the 1940 Act would impose a variety of restrictions on the Fund's dealings with the private company.
Moreover, these restrictions may arise as a result of investments by other clients of the Adviser or its affiliates in a private company.
These restrictions may be detrimental to the performance of the Fund compared to what it would be if these restrictions did not exist,
and could impact the universe of investable private companies for the Fund. The fact that many private companies may have a limited number
of investors and a limited amount of outstanding equity heightens these risks.
Private Placements
and Other Restricted Securities Risk. Private placement and other restricted securities include securities that have
been privately placed
and are not registered under the Securities Act, such as unregistered securities eligible for resale without registration pursuant to
Rule 144A ("Rule 144A Securities") and privately placed securities of U.S. and non-U.S. issuers offered outside of the United
States without registration with the SEC pursuant to Regulation S ("Regulation S Securities").
Private placements
may offer attractive opportunities for investment not otherwise available on the open market.
Private placements
securities typically may be sold only to qualified institutional buyers (or, in the case of the initial sale of certain securities, such
as those issued in collateralized debt obligations or collateralized loan obligations, to accredited investors (as defined in Rule 501(a)
under the Securities Act)), or in a privately negotiated transaction or to a limited number of purchasers, or in limited quantities after
they have been held for a specified period of time and other conditions are met pursuant to an exemption from registration. Rule 144A
Securities and Regulation S Securities may be freely traded among certain qualified institutional investors, such as the Fund, but their
resale in the U.S. is permitted only in limited circumstances.
Issuers of restricted
securities may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities
were publicly traded. Where a registration statement is required for the resale of restricted securities, the Fund may be required to
bear all or part of the registration expenses. The Fund may be deemed to be an "underwriter" for purposes of the Securities
Act when selling restricted securities to the public and, in such event, the Fund may be liable to purchasers of such securities if the
registration statement prepared by the issuer is materially inaccurate or misleading. Private placements typically are subject to restrictions
on resale as a matter of contract or under federal securities laws. Because there may be relatively few potential purchasers for such
securities, especially under adverse market or economic conditions or in the event of adverse changes in the financial condition of the
issuer, the Fund could find it more difficult to sell such securities when it may be advisable to do so or it may be able to sell such
securities only at prices lower than if such securities were more widely held. At times, it also may be more difficult to determine the
fair value of such securities for purposes of computing the Fund's net asset value due to the absence of a trading market.
Private placements
and restricted securities may be considered illiquid securities, which could have the effect of increasing the level of the Fund's illiquidity.
Additionally, a restricted security that was liquid at the time of purchase may subsequently become illiquid.
Disposing of illiquid
investments may involve time-consuming negotiation and legal expenses, and it may be difficult or impossible for the Fund to sell them
promptly at an acceptable price. The Fund may have to bear the extra expense of registering the securities for
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Additional Information Regarding the
Fund (unaudited) (continued)
resale and the risk
of substantial delay in effecting the registration. In addition, market quotations typically are less readily available for these securities.
Foreign Securities
Risk. The Fund uses various criteria to determine which country is deemed to have issued the securities in which the Fund invests.
Because issuers often have activities and operations in several different countries, an issuer could be considered a non-U.S. issuer
even though changes in the value of its securities held by a Fund are significantly impacted by its U.S. activities. Similarly, an issuer
could be classified as a U.S. issuer even when the changes in the value of the issuer's securities held by a Fund are significantly impacted
by non-U.S. activities. Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments
involve some of the following risks as well:
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political
and economic instability;
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the
impact of currency exchange rate fluctuations;
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reduced
information about issuers;
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higher
transaction costs;
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less
stringent regulatory and accounting standards; and
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Additional risks
include the possibility that a foreign jurisdiction might impose or increase withholding taxes on income payable with respect to foreign
securities; the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which the Fund could lose its
entire investment in a certain market); and the possible adoption of foreign governmental restrictions such as exchange controls.
The risks of investing
in foreign securities are increased in connection with investments in emerging markets. See "Emerging Market Securities Risk".
Emerging Market
Securities Risk. The risks of investing in foreign securities are increased in connection with investments in emerging markets. Although
there is no universally accepted definition, an emerging or developing country is generally considered to be a country which is in the
initial stages of industrialization. Investing in emerging markets can involve unique risks in addition to and greater than those generally
associated with investing in developed markets. Shareholders should be aware that investing in the markets of developing countries involves
exposure to unstable governments, economies based on only a few industries, and securities markets which trade a small number of securities.
Securities markets of developing countries tend to be more volatile than the markets of developed countries; however, such markets have
in the past provided the opportunity for higher rates of return to investors.
The value and liquidity
of investments in developing countries may be affected favorably or unfavorably by political, economic, fiscal, regulatory or other developments
in the particular countries or neighboring regions. The extent of economic development, political stability and market depth of different
countries varies widely. Such investments typically involve greater potential for gain or loss than investments in securities of issuers
in developed countries.
The securities markets
in developing countries are substantially smaller, less liquid and more volatile than the major securities markets in the United States.
A high proportion of the shares of issuers in developing countries may be held by a limited number of persons and financial institutions,
which may limit the number of shares available for investment by the Fund. The small size, limited trading volume and relative inexperience
of the securities markets in these countries may make investments in securities traded in emerging markets less liquid and more volatile
than investments in securities traded in more developed countries. For example, limited market size may cause prices to be unduly influenced
by traders who control large positions. A limited number of issuers in developing countries' securities markets may represent a disproportionately
large percentage of market capitalization and trading volume. The limited liquidity of securities markets in developing countries may
also affect the Fund's ability to acquire or dispose of securities at the price and time it wishes to do so. The Fund's inability to
dispose fully and promptly of positions in declining markets could cause the Fund's NAV to decline as the value of the unsold positions
is marked to lower prices. In addition, the Fund may be required to establish special custodial or other arrangements before making investments
in securities traded in emerging markets. There may be little financial or accounting information available with respect to issuers of
emerging market securities, and it may be difficult as a result to assess the value of prospects of an investment in such securities.
The currencies of
certain emerging market countries have experienced devaluations relative to the U.S. Dollar, and future devaluations may adversely affect
the value of assets denominated in such currencies. In addition, currency hedging techniques may be unavailable in certain emerging market
countries. Many emerging market countries have experienced substantial, and in some periods extremely high, rates of inflation or deflation
for many years, and future inflation may adversely affect the economies and securities markets of such countries.
Political and economic
structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social,
political and economic stability characteristics of the United States. In addition, unanticipated political or social developments may
affect the value of investments in emerging markets and the availability of additional investments in these markets. Any change in the
leadership or politics of emerging market countries, or the countries that exercise a significant influence
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over those countries,
may halt the expansion of or reverse the liberalization of foreign investment policies now occurring and adversely affect existing investment
opportunities. Certain countries have in the past failed to recognize private property rights and have at times nationalized or expropriated
the assets of private companies. As a result, the risks described above, including the risks of nationalization or expropriation of assets,
may be heightened.
Economies of developing
countries may differ favorably or unfavorably from the United States' economy in such respects as rate of growth of gross national product,
rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. Certain developing countries do
not have comprehensive systems of laws, although substantial changes have occurred in many such countries in this regard in recent years.
Laws regarding fiduciary duties of officers and directors and the protection of shareholders may not be well developed. Even where adequate
law exists in such developing countries, it may be impossible to obtain swift and equitable enforcement of such law, or to obtain enforcement
of the judgment by a court of another jurisdiction.
The risk also exists
that an emergency situation may arise in one or more emerging markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for the Fund's securities in such markets may not be readily available. The Fund may suspend redemption
of its shares for any period during which an emergency exists, as determined by the SEC. Accordingly, if the Fund believes that appropriate
circumstances exist, it will promptly apply to the SEC for a determination that an emergency is present. During the period commencing
from the Fund's identification of such condition until the date of the SEC action, the Fund's securities in the affected markets will
be valued at fair value determined in good faith by or under the direction of the Fund's Board.
Certain of the foregoing
risks may also apply to some extent to securities of U.S. issuers that are denominated in foreign currencies or that are traded in foreign
markets, or securities of U.S. issuers having significant foreign operations.
Trading in futures contracts on foreign
commodity exchanges may be subject to the same or similar risks as trading in foreign securities.
Foreign Currency
Exposure Risk. The Fund may invest in securities that trade in, or receive revenues in, foreign currencies are subject to the risk
that those currencies may fluctuate in value relative to the U.S. Dollar. Currency rates in foreign countries may fluctuate significantly
over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by
U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of
currency controls or other political developments in the U.S. or abroad. These risks may impact the Fund more greatly to the extent the
Fund does
not hedge its currency
risk. To manage currency risk, the Fund may enter into foreign currency exchange contracts to hedge against a decline in the U.S. Dollar
value of a security it already owns or against an increase in the value of an asset it expects to purchase. The Fund is not required
to hedge currency risk. The Adviser's use of hedging techniques does not eliminate exchange rate risk. In certain circumstances, the
Adviser may hedge using a foreign currency other than the currency which the portfolio securities being hedged are denominated. This
type of hedging entails greater risk because it is dependent on a stable relationship between the two currencies paired in the hedge
and the relationship can be very unstable at times. If the Adviser is unsuccessful in its attempts to hedge against exchange rate risk,
the Fund could be in a less advantageous position than if the Adviser did not establish any currency hedge. Losses on foreign currency
transactions used for hedging purposes may be offset by gains on the assets that are the subject of the Fund's hedge.
The Fund's gains
from its positions in foreign currencies may accelerate and/or recharacterize the Fund's income or gains at the Fund level and its distributions
to shareholders. A Fund's losses from such positions may also recharacterize the Fund's income and its distributions to shareholders
and may cause a return of capital to Fund shareholders.
To the extent a
foreign government limits or causes delays in the convertibility or repatriation of its currency, this will adversely affect the U.S.
dollar value and/or liquidity of investments denominated in that currency. Such actions could severely affect security prices, impair
a Fund's ability to purchase or sell foreign securities or transfer the Fund's assets back into the U.S., or otherwise adversely affect
the Fund's operations.
Terrorism and
Cybersecurity Risk. Infrastructure-related issuers are subject to disruption as a result of terrorist activities and other geopolitical
events, including upheaval in the Middle East or other energy-producing regions. Cyber hacking could also cause significant disruption
and harm to infrastructure-related issuers. The U.S. government has issued warnings that certain infrastructure assets, specifically
those related to energy infrastructure, including exploration and production facilities, pipelines and transmission and distribution
facilities, might be specific targets of terrorist activity. Additionally, digital and network technologies (collectively, "cyber
networks") might be at risk of cyberattacks that could potentially seek unauthorized access to digital systems for purposes such
as misappropriating sensitive information, corrupting data or causing operational disruption. Cyberattacks might potentially be carried
out by persons using techniques that could range from efforts to electronically circumvent network security or overwhelm websites to
intelligence gathering and social engineering functions aimed at obtaining information necessary to gain access.
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In
addition, the Fund is subject to direct cybersecurity risk. Cybersecurity incidents may allow an unauthorized party to gain access to
Fund assets, customer data (including private shareholder information), or proprietary information, or cause the Fund, the Adviser and/or
the Fund's service providers (including, but not limited to, Fund accountants, custodians, sub-custodians and transfer agents) to suffer
data breaches, data corruption or lose operational functionality.
Derivatives
Risk. The Fund may invest in financial derivative instruments for hedging, including primarily forward foreign exchange contracts
to manage foreign currency risks, although the Advisers are not required to hedge the Fund's currency exposure.
Forward
contracts are obligations to purchase or sell an asset or, most commonly, 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 foreign
currency contracts are the primary means of hedging currency exposure.
Derivatives
are speculative and may hurt the Fund's performance. Derivatives present the risk of disproportionately increased losses and/or reduced
opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential
benefits to be derived from the Fund's derivatives use are dependent upon the portfolio managers' ability to discern pricing inefficiencies
and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than
predicting changes in the price of individual securities, and there can be no assurance that the use of this strategy will be successful.
Some additional risks of investing in derivatives for purposes of hedging include:
• Hedged
Exposure Risk – Losses generated by a derivative or practice used by the Fund for hedging purposes should be substantially
offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.
• Correlation
Risk – The Fund is exposed to the risk that changes in the value of derivatives may not match or fully offset changes in the
value of the hedged portfolio securities, thereby failing to achieve the original purpose for using the derivatives.
• Counterparty
Risk – Derivative transactions depend on the creditworthiness of the counterparty and the counterparty's ability to fulfill
its contractual obligations.
See
also "Foreign Currency Exposure Risk" above.
OPERATIONAL
RISKS
Stable
Distribution Plan Risk. The Fund has adopted a Stable Distribution Plan, which may be changed at any time by the Board, to support
a
stable
distribution of income, capital gains, and/or return of capital. In the event the Fund does not generate a total return from dividends
and interest received and net realized capital gains in an amount equal to or in excess of its stated distribution in a given year, the
Fund may return capital as part of such distribution. Any return of capital should not be considered by investors as yield or total return
on their investment in the Fund.
The
composition of each distribution to be made by the Fund is estimated based on the earnings of the Fund as of the record date for each
distribution. The actual composition of each of the current year's distributions will be based on the Fund's investment activity through
the end of the calendar year. Under the Fund's Stable Distribution Plan, the Fund declares and pays monthly distributions from net investment
income, capital gains and paid-in capital. The actual source of the distribution is determined after the end of the year. Pursuant to
the Stable Distribution Plan, distributions during the year may be made in excess of required distributions. To the extent such distributions
are made from current or accumulated earnings and profits, they are considered ordinary income or long term capital gains. Shareholders
should not draw any conclusions about the Fund's investment performance from the amount of its distributions or from the terms of the
Stable Distribution Plan.
Operating
Results Risk. The Fund could experience fluctuations in its operating results due to a number of factors, including the return on
its investments, the level of its expenses, and the degree to which the Fund encounters competition in its markets and general economic
conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future
periods.
Market
Discount Risk. Shares of closed-end investment companies frequently trade at a discount from net asset value. Continued development
of alternative vehicles for investing in essential asset companies may contribute to reducing or eliminating any premium or may result
in the Fund's common shares trading at a discount. The risk that the Fund's common shares may trade at a discount is separate from the
risk of a decline in the Fund's net asset value as a result of investment activities.
Whether
shareholders will realize a gain or loss for federal income tax purposes upon the sale of their common shares depends upon whether the
market value of the common shares at the time of sale is above or below the shareholder's basis in such common shares, taking into account
transaction costs, and it is not directly dependent upon the Fund's net asset value. Because the market price of the Fund's common shares
will be determined by factors such as the relative demand for and supply of the shares in the market, general market conditions and other
factors beyond the Fund's control, the Fund cannot predict whether its common shares will trade at, below or above net asset
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value,
or at, below or above the public offering price for the Fund's common shares.
Delay
in Use of Proceeds Risk. Although the Fund expects to fully invest the net proceeds of this offering in an initial portfolio of primarily
publicly listed investments within one month after the closing of this offering, such investments may be delayed if suitable investments
are unavailable at the time, if market conditions and volumes of securities are not favorable at the time or for other reasons. As a
result, the proceeds may be invested in money market mutual funds; cash; cash equivalents; securities issued or guaranteed by the U.S.
government or its instrumentalities or agencies; high quality, short-term money market instruments; short- term debt securities; certificates
of deposit; bankers' acceptances and other bank obligations; commercial paper or other liquid debt securities. The one-month timeframe
associated with the anticipated use of proceeds could lower returns and lower the Fund's yield in the first year after the issuance of
the Fund's common shares.
In
addition, under current market conditions, the Fund expects that it may take approximately 24 months from the closing of this offering
to identify and complete its investments in Private Infrastructure Opportunities. Further, the Fund's investment in Private Infrastructure
Opportunities will be dictated by the availability of Private Infrastructure Opportunities and there is no guarantee that attractive
opportunities will be available to permit the Fund to invest as desired.
Portfolio
Turnover Risk. At times, particularly during the initial twelve months of operation, the Fund's portfolio turnover may be higher.
High portfolio turnover involves greater transaction costs for the Fund and may result in greater realization of capital gains, including
short-term capital gains.
Valuation
Risk. The Private Infrastructure Opportunities will typically consist of securities for which a liquid trading market does not exist.
The fair value of these securities may not be readily determinable. The Fund will value these securities in accordance with valuation
procedures adopted by the Board of Trustees. The types of factors that may be considered in fair value pricing of the Fund's investments
include, as applicable, the nature and realizable value of any collateral, the issuer's ability to make payments, the markets in which
the issuer does business, comparison to publicly traded companies, discounted cash flow and other relevant factors. Because such valuations,
and particularly valuations of non-traded securities and private companies, are inherently uncertain, they may fluctuate over short periods
of time and may be based on estimates. The determination of fair value by the Board of Trustees may differ materially from the values
that would have been used if a liquid trading market for these securities existed. The Fund's net asset value could be adversely affected
if the determinations regarding the fair value of its investments were
materially
higher than the values that the Fund ultimately realizes upon the disposition of such securities.
Tax
Risk. The Fund intends to elect to be treated, and to qualify each year, as a RIC under the Code. To maintain its qualification for
federal income tax purposes as a RIC under the Code, the Fund must meet certain source-of-income, asset diversification and annual distribution
requirements. If for any taxable year the Fund fails to qualify for the special federal income tax treatment afforded RICs, all of its
taxable income will be subject to federal income tax at regular corporate rates (without any deduction for distributions to the Fund's
shareholders) and its income available for distribution will be reduced.
Leverage
Risk. The Fund currently does not intend to use leverage, but may do so in the future. The use of leverage creates an opportunity
for increased common share net investment income dividends, but also creates risks for the holders of common shares. The Fund cannot
assure you that the use of leverage, if employed, will result in a higher yield on the common shares. Any leveraging strategy the Fund
employs may not be successful.
Leverage
involves risks and special considerations for common shareholders, including:
• the
likelihood of greater volatility of NAV, market price and dividend rate of the common shares than a comparable portfolio without leverage;
• the
risk that fluctuations in interest rates or dividend rates on any leverage that the Fund must pay will reduce the return to the common
shareholders;
• the
effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the common shares than if the Fund
were not leveraged, which may result in a greater decline in the market price of the common shares;
• when
the Fund uses financial leverage, the management fee payable to the Adviser will be higher than if the Fund did not use leverage; and
• leverage
may increase operating costs, which may reduce total return.
Any
decline in the NAV of the Fund's investments will be borne entirely by the holders of common shares. Therefore, if the market value of
the Fund's portfolio declines, leverage will result in a greater decrease in NAV to the holders of common shares than if the Fund were
not leveraged. This greater NAV decrease will also tend to cause a greater decline in the market price for the common shares. While the
Fund may from time to time consider reducing any outstanding leverage in response to actual or anticipated changes in interest rates
in an effort to mitigate the increased volatility of current income and NAV
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associated
with leverage, there can be no assurance that the Fund will actually reduce any outstanding leverage in the future or that any reduction,
if undertaken, will benefit the holders of common shares. Changes in the future direction of interest rates are very difficult to predict
accurately. If the Fund were to reduce any outstanding leverage based on a prediction about future changes to interest rates, and that
prediction turned out to be incorrect, the reduction in any outstanding leverage would likely operate to reduce the income and/or total
returns to holders of common shares relative to the circumstance where the Fund had not reduced any of its outstanding leverage. The
Fund may decide that this risk outweighs the likelihood of achieving the desired reduction to volatility in income and share price if
the prediction were to turn out to be correct, and determine not to reduce any of its outstanding leverage as described above.
The
Fund currently does not intend to borrow money or issue debt securities or preferred shares, but may in the future borrow funds from
banks or other financial institutions, or issue debt securities or preferred shares, as described in this prospectus. Certain types of
leverage the Fund may use may result in the Fund being subject to covenants relating to asset coverage and portfolio composition requirements.
If the Fund fails to meet such covenants, the Fund may be required to repay immediately, in part or in full, any outstanding leverage,
necessitating the sale of portfolio securities, including illiquid securities, at inopportune times. The Fund may be subject to certain
restrictions on investments imposed by guidelines of one or more rating agencies, which may issue ratings for any debt securities or
preferred shares issued by the Fund. The terms of any borrowings or these rating agency guidelines may impose asset coverage or portfolio
composition requirements that are more stringent than those imposed by the Investment Company Act. The Adviser does not believe that
these covenants or guidelines will impede it from managing the Fund's portfolio in accordance with the Fund's investment objectives and
policies.
In
addition to the foregoing, the use of leverage treated as indebtedness of the Fund for U.S. federal income tax purposes may reduce the
amount of Fund dividends that are otherwise eligible for the dividends received deduction in the hands of corporate shareholders.
Capital
Markets Risk. In the event of an economic downturn or period of increased financial stress, like the one caused by the recent COVID-19
outbreak, the cost of raising capital in the debt and equity capital markets may increase, and the ability to raise capital may be limited.
In particular, concerns about the general stability of financial markets and specifically the solvency of lending counterparties may
impact the cost of raising capital from the credit markets through increased interest rates, tighter lending standards, difficulties
in refinancing debt on existing terms or at all and reduced, or in some cases ceasing to provide, funding to borrowers. In addition,
lending
counterparties
under existing revolving credit facilities and other debt instruments may be unwilling or unable to meet their funding obligations. As
a result of any of the foregoing, the Fund or the companies in which the Fund invests may be unable to obtain new debt or equity financing
on acceptable terms. If funding is not available when needed, or is available only on unfavorable terms, the Fund or the companies in
which the Fund invests may not be able to meet obligations as they come due. Moreover, without adequate funding, essential asset companies
may be unable to execute their growth strategies, complete future acquisitions, take advantage of other business opportunities or respond
to competitive pressures, any of which could have a material adverse effect on their revenues and results of operations and, consequently,
the performance of the Fund.
Legal,
Regulatory and Policy Risks. Legal and regulatory changes could occur that may adversely affect the Fund, its investments and its
ability to pursue its investment strategies and/or increase the costs of implementing such strategies. New or revised laws or regulations
may be imposed by the SEC, the U.S. Commodity Futures Trading Commission (the "CFTC"), the Internal Revenue Service, the U.S.
Federal Reserve or other governmental regulatory authorities or self-regulatory organizations that could adversely affect us. The Fund
may also may be adversely affected by changes in the enforcement or interpretation of existing statutes and rules by governmental regulatory
authorities or self-regulatory organizations.
Due
to recent instability in financial markets, including that caused by the recent COVID-19 outbreak, U.S. federal and state governments
and foreign governments, their regulatory agencies or self-regulatory organizations have taken and may take additional actions that affect
the regulation of the securities in which the Fund invests, or the issuers of such securities, in ways that are unforeseeable and on
an "emergency" basis with little or no notice, with the consequence that some market participants' ability to continue to implement
certain strategies or manage the risk of their outstanding positions may be suddenly and/or substantially eliminated or otherwise negatively
impacted. Given the complexities of the global financial markets and the limited timeframe within which governments may be required to
take action, these interventions may result in confusion and uncertainty, which in itself may be materially detrimental to the efficient
functioning of such markets as well as previously successful investment strategies.
Limitations
on Transactions with Affiliates Risk. The 1940 Act limits the Fund's ability to enter into certain transactions with certain of its
affiliates. As a result of these restrictions, the Fund may be prohibited from buying or selling any security directly from or to any
portfolio company that is considered its affiliate under the 1940 Act. However, the Fund may under certain circumstances purchase any
such portfolio company's securities in the secondary market, which could create a
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conflict
for the Adviser or Sub-Adviser between the Fund's interests and the interests of the portfolio company, in that the ability of the Adviser
or Sub-Adviser, as applicable, to recommend actions in the Fund's best interests might be impaired.
The
1940 Act also prohibits certain "joint" transactions by the Fund with certain of its affiliates, including other accounts adviser
by the Adviser and Sub-Adviser, which imposes limits on investments in the same issuer (whether at the same or different times). The
Adviser may in the future seek exemptive relief from the SEC that would permit the Fund, among other things, greater flexibility to co-invest
with certain other persons, including certain other accounts, subject to certain terms and conditions. Such relief may not cover all
circumstances and the Fund may be precluded from participating in certain transactions due to regulatory restrictions on transactions
with affiliates.
Potential
Conflicts of Interest. The portfolio managers' management of "other accounts" may give rise to potential conflicts of interest
in connection with their management of the Fund's investments, on the one hand, and the investments of the other accounts, on the other.
The other accounts may have the same investment objective as the Fund. Therefore, a potential conflict of interest may arise as a result
of the identical investment objectives, whereby the portfolio manager could favor one account over another. However, the Adviser believes
that these risks are mitigated by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager
are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable
only to certain accounts, differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading
is monitored to avoid potential conflicts. In addition, the Adviser has adopted trade allocation procedures that require equitable allocation
of trade orders for a particular security among participating accounts.
In
some cases, another account managed by the same portfolio manager may compensate the Adviser based on the performance of the portfolio
held by that account. The existence of such a performance-based fee may create additional conflicts of interest for the portfolio manager
in the allocation of management time, resources and investment opportunities.
Another
potential conflict could include instances in which securities considered as investments for the Fund also may be appropriate for other
investment accounts managed by the Adviser or its affiliates. Whenever decisions are made to buy or sell securities by the Fund and one
or more of the other accounts simultaneously, the Adviser may aggregate the purchases and sales of the securities and will allocate the
securities transactions in a manner that it believes to be equitable under the circumstances. As a result of the allocations, there may
be instances where the Fund will not participate in a transaction that is allocated among other accounts. While these aggregation and
allocation
policies could have a detrimental effect on the price or amount of the securities available to the Fund from time to time, it is the
opinion of the Adviser that the benefits from the policies outweigh any disadvantage that may arise from exposure to simultaneous transactions.
The Adviser has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that
procedures adopted under such policies will detect each and every situation in which a conflict arises.
The
Adviser also has adopted written allocation procedures for transactions involving private placement securities, which are designed to
result in a fair and equitable participation in offerings or sales for participating clients over time.
From
time to time, the Adviser or the Sub-Adviser may seed proprietary accounts for the purpose of evaluating a new investment strategy that
eventually may be available to clients through one or more product structures. Such accounts also may serve the purpose of establishing
a performance record for the strategy. The management by the Adviser and the Sub-Adviser of accounts with proprietary interests and nonproprietary
client accounts may create an incentive to favor the proprietary accounts in the allocation of investment opportunities, and the timing
and aggregation of investments. The Adviser's and Sub-Adviser's proprietary seed accounts may include long-short strategies, and certain
client strategies may permit short sales. A conflict of interest arises if a security is sold short at the same time as a long position,
and continuous short selling in a security may adversely affect the stock price of the same security held long in client accounts. The
Adviser and Sub-Adviser have adopted various policies to mitigate these conflicts.
Situations
may occur when the Fund could be disadvantaged because of the investment activities conducted by the Adviser, the Sub-Adviser and their
affiliates for other accounts. Such situations may be based on, among other things, the following: (1) legal or internal restrictions
on the combined size of positions that may be taken for the Fund or the other accounts, thereby limiting the size of the Fund's position;
(2) the difficulty of liquidating an investment for the Fund or the other accounts where the market cannot absorb the sale of the combined
position; or (3) regulatory restrictions on transaction with affiliates.
The
Adviser has the ability to allocate investment opportunities of certain negotiated transactions between the Fund, other funds registered
under the 1940 Act and other accounts managed by the Adviser pro rata based on available capital, up to the amount proposed to be invested
by each ("Co-Investment Opportunities"). The 1940 Act and a rule thereunder impose limits on the Fund's ability to participate
in Co-Investment Opportunities, and the Fund generally will not be permitted to co-invest alongside other funds registered under the
1940 Act and other accounts managed by the Adviser in privately negotiated transactions unless the Fund obtains an exemptive order from
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the
SEC or the transaction is otherwise permitted under existing regulatory guidance, such as certain transactions in publicly traded securities
and transactions in which price is the only negotiated term. To the extent an investment opportunity in a transaction involving the negotiation
of any term of the investment other than price or quantity (a "negotiated transaction") arises, and the Adviser determines
that it would be appropriate for both the Fund and other accounts managed by the Adviser, the opportunity will be allocated to the other
accounts and the Fund will not participate in the negotiated transaction. To the extent that the Adviser sources and structures private
investments in publicly traded issuers, certain employees of the Adviser may become aware of actions planned by such issuers, such as
acquisitions, which may not be announced to the public. It is possible that the Fund could be precluded from investing in or selling
securities of an issuer about which the Adviser has material, nonpublic information, however, it is the Adviser's intention to ensure
that any material, non-public information available to certain employees of the Adviser is not shared with the employees responsible
for the purchase and sale of publicly traded securities or to confirm prior to receipt of any material non-public information that the
information will shortly be made public. The Fund's investment opportunities also may be limited by affiliations of the Adviser, the
Sub-Adviser or their affiliates with infrastructure companies.
The
Adviser, the Sub-Adviser and their respective principals, officers, employees and affiliates may buy and sell securities or other investments
for their own accounts and may have actual or potential conflicts of interest with respect to investments made on the Fund's behalf.
As a result of differing trading and investment strategies or constraints, positions may be taken by principals, officers, employees
and affiliates of the Adviser and the Sub-Adviser that are the same as, different from or made at a different time from positions taken
for the Fund. Further, the Adviser and the Sub-Adviser may at some time in the future manage additional investment funds with the same
investment objective as the Fund.
Anti-Takeover
Provisions Risk. The Fund's Declaration of Trust and Bylaws include provisions that could delay, defer or prevent other entities
or persons from acquiring control of the Fund, causing the Fund to engage in certain transactions or modify its structure. These provisions
may be regarded as "anti-takeover" provisions. Such provisions could limit the ability of common shareholders to sell their
shares at a premium over the then-current market prices by discouraging a third party from seeking to obtain control of us.
Fundamental
Investment Restrictions
The
following are the fundamental investment limitations of the Fund set forth in their entirety. Investment limitations identified as fundamental
may be changed only with the approval of the holders of a majority of the Fund's outstanding voting securities (which for this
purpose
and under the 1940 Act, means the lesser of (1) 67% of the voting shares present in person or by proxy at a meeting at which more than
50% of the outstanding voting shares are present in person or by proxy, or (2) more than 50% of the outstanding voting shares).
The
Fund may not:
(1) issue
senior securities, except as permitted by the 1940 Act and the rules and interpretive positions of the SEC thereunder;
(2) borrow
money, except as permitted by the 1940 Act and the rules and interpretive positions of the SEC thereunder;
(3) make
loans, except by the purchase of debt obligations, by entering into repurchase agreements or through the lending of portfolio securities
and as otherwise permitted by the 1940 Act and the rules and interpretive positions of the SEC thereunder;
(4) purchase
the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities)
if, as a result, more than 25% of the Fund's total assets would be invested in the securities of companies whose principal business activities
are in the same industry;
(5) underwrite
securities issued by others, except to the extent that we may be considered an underwriter within the meaning of the Securities Act of
1933, as amended (the "Securities Act"), in the disposition of restricted securities held in our portfolio;
(6) purchase
or sell real estate unless acquired as a result of ownership of securities or other instruments, except that the Fund may invest in securities
or other instruments backed by real estate or securities of companies that invest in real estate or interests therein (including real
estate investment trusts ("REITs")); and
(7) purchase
or sell physical commodities unless acquired as a result of the ownership of securities or other instruments, except that we may purchase
or sell options and futures contracts or invest in securities or other instruments backed by physical commodities.
All
other investment policies are considered non-fundamental and may be changed by the Board without prior approval of a majority of the
Fund's outstanding voting securities.
Aberdeen Standard Global Infrastructure Income
Fund
|
47
|
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 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
|
48
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Dividend
Reinvestment and Optional Cash Purchase Plan (unaudited)
(concluded)
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 Standard Global Infrastructure Income
Fund
|
49
|
Management of the Fund (unaudited)
The names of the Trustees and Officers of the Fund, their addresses,
years of birth, and principal occupations during the past five years are provided in the tables below. Trustees that are deemed "interested
persons" (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) of the Fund or the Fund's
investment adviser are included in the table below under the heading "Interested Trustees." Trustees who are not interested
persons, as described above, are referred to in the table below under the heading "Independent Trustees."
Board of Trustees Information
Name, Address,
Year of Birth
|
|
Positions Held
within the Fund
|
|
Term of Office &
Length of
Time Served
|
|
Principal Occupation
|
|
Number of
Funds in
Fund Complex1
Overseen by
Trustee
|
|
Other
Directorships
Held by
Trustee2
|
|
Interested
Trustees
|
|
Stephen
Bird
Year of Birth: 1967
|
|
Class III Trustee
|
|
Term expires
2023; Trustee
since 2021
|
|
Mr. Bird joined the Board of abrdn plc (formerly, SLA plc) in July 2020 as Chief Executive-Designate, and was formally appointed Chief Executive Officer in September 2020. Previously, Mr. Bird served as chief executive officer of global consumer banking at Citigroup from 2015, retiring from the role in November 2019. His responsibilities encompassed all consumer and commercial banking businesses in 19 countries, including retail banking and wealth management, credit cards, mortgages, and operations and technology supporting these businesses. Prior to this, Mr. Bird was chief executive for all of Citigroup's Asia Pacific business lines across 17 markets in the region, including India and China. Mr. Bird joined Citigroup in 1998, and during his 21 years with the company he held a number of leadership roles in banking, operations and technology across its Asian and Latin American businesses. Before this, he held management positions in the UK at GE Capital – where he was director of UK operations from 1996 to 1998 – and at British Steel.
|
|
26
|
|
None.
|
|
Independent
Directors
|
|
Nancy Yao Maasbach
c/o Aberdeen Standard
Investments Inc.,
1900 Market Street,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1972
|
|
Class III Trustee
|
|
Term expires
2023; Trustee
since
|
|
Ms. Maasbach is the President of the Museum of Chinese in America. Ms. Maasbach is on the board of the National Committee on U.S.-China Relations and is a member of the Council on Foreign Relations.
|
|
7
|
|
None.
|
|
P. Gerald Malone
c/o Aberdeen Standard
Investments Inc.,
1900 Market Street,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1950
|
|
Chairman of the
Fund; Class II
Trustee
|
|
Term expires
2022; Trustee
since 2020
|
|
Mr. Malone is, by profession, a lawyer of over 40 years. Currently, he is a non-executive director of a number of U.S. companies, including Medality Medical (medical technology company) and Bionik Laboratories Corp. (US healthcare company) since 2018. He is also Chairman of other open and closed end funds in the Fund Complex. He previously served as Independent Chairman of UK companies Crescent OTC Ltd (pharmaceutical services) until February 2018 and fluidOil Ltd. (oil services) until June 2018. Mr. Malone was previously a Member of Parliament in the U.K. from 1983 to 1997 and served as Minister of State for Health in the U.K. government from 1994 to 1997.
|
|
27
|
|
None.
|
|
50
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Management of the Fund (unaudited)
(continued)
Name, Address,
Year of Birth
|
|
Positions Held
within the Fund
|
|
Term of Office &
Length of
Time Served
|
|
Principal Occupation
|
|
Number of
Funds in
Fund Complex1
Overseen by
Trustee
|
|
Other
Directorships
Held by
Trustee2
|
|
Todd
Reit
c/o Aberdeen Standard
Investments Inc.,
1900 Market Street,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1968
|
|
Class II Trustee
|
|
Term expires
2022; Trustee
since 2020
|
|
Mr. Reit is a a Managing Member of Cross Brook Partners LLC, a real estate investment and management company since 2017. Mr. Reit is also Director and Financial Officer of Shelter Our Soldiers, a charity to support military veterans, since 2016. Mr. Reit was formerly a Managing Director and Global Head of Asset Management Investment Banking for UBS AG, where he was responsible for overseeing all the bank's asset management client relationships globally, including all corporate security transactions, mergers and acquisitions. Mr. Reit retired from UBS in 2017 after an over 25-year career at the company and its predecessor company, PaineWebber Incorporated (merged with UBS AG in 2000).
|
|
1
|
|
None.
|
|
John Sievwright
c/o Aberdeen Standard
Investments Inc.,
1900 Market Street,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1955
|
|
Class I Trustee
|
|
Term expires
2024; Trustee
since 2020
|
|
Mr. Sievwright is a Non-Executive Director of Revolut (since August 2021) and Burford Capital Ltd (since May 2020). Previously he was a Non-Executive Director for the following UK companies: NEX Group plc (2017-2018) (financial); and ICAP plc (2009-2016) (financial).
|
|
6
|
|
None.
|
|
|
1
|
As
of September 30, 2021, Aberdeen Income Credit Strategies Fund, Aberdeen Asia-Pacific Income
Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen
Emerging Markets Equity Income Fund, Inc., Aberdeen Japan Equity Fund, Inc., The India Fund,
Inc., Aberdeen Global Dynamic Dividend Fund, Aberdeen Total Dynamic Dividend Fund, Aberdeen
Global Premier Properties Fund, Aberdeen Standard Global Infrastructure Income Fund, Aberdeen
Investment Funds (which consists of 4 portfolios), Aberdeen Funds (which consists of 19 portfolios)
and abdrn ETFs (which consists of 3 portfolios) have a common investment adviser, or an investment
adviser that is affiliated with the Investment Adviser and Sub-Adviser, and may thus be deemed
to be part of the same "Fund Complex."
|
|
2
|
Current
directorships (excluding Fund Complex) held in (1) any other investment companies registered
under the 1940 Act, (2) any company with a class of securities registered pursuant to Section
12 of the Securities Exchange Act of 1934, as amended (the "1934 Act") or (3) any
company subject to the requirements of Section 15(d) of the Exchange Act.
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
51
|
Management of the Fund (unaudited)
(continued)
Information Regarding Officers* who are not Trustees
Name, Address and
Year of Birth
|
|
Position(s) Held
with the Fund
|
|
Term of Office*
and Length of
Time Served
|
|
Principal Occupation(s) During Past Five Years
|
Joseph
Andolina**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1978
|
|
Chief
Compliance
Officer; Vice
President,
Compliance
|
|
Since 2020
|
|
Currently, Chief Risk Officer – Americas and serves as the Chief Compliance Officer for ASII. Prior to joining the Risk and Compliance Department, he was a member of ASII's Legal Department, where he served as U.S. Counsel since 2012.
|
Chris
Demetriou**
Aberdeen Standard
Investments Inc.
1900 Market St.,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1983
|
|
Vice President
|
|
Since 2020
|
|
Currently, Chief Executive Officer – UK, EMEA and Americas, Mr. Demetriou joined ASII in 2013, as a result of the acquisition of SVG, a FTSE 250 private equity investor based in London.
|
Josh
Duitz**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1970
|
|
Vice President
|
|
Since 2020
|
|
Currently, Deputy Head of the Global Equities Team, Mr. Duitz is responsible for managing Aberdeen Standard Global Infrastructure Fund, Aberdeen Total Dynamic Dividend Fund, Aberdeen Global Dynamic Dividend Fund and the Aberdeen Dynamic Dividend Fund (AIFRX, AOD,AGD and ADVDX). He joined ASII in 2018 from Alpine Woods Capital Investors LLC where he was a Portfolio Manager. Previously, Mr. Duitz worked for Bear Stearns where he was a Managing Director, Principal and traded international equities. Prior to that, he worked for Arthur Andersen where he was a senior auditor.
|
Sharon
Ferrari**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1977
|
|
Assistant
Treasurer
|
|
Since 2020
|
|
Currently, Senior Product Manager – US for ASII. Ms. Ferrari joined ASII as a Senior Fund Administrator in 2008.
|
Keenan
Fishwick
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1993
|
|
Vice President
|
|
Since 2020
|
|
Currently, Corporate Strategy Manager within Group Product Opportunities for ASII. Mr Fishwick joined ASII in 2016 as a Business Analyst.
|
Alan
Goodson**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1974
|
|
Vice President
|
|
Since 2020
|
|
Currently, Director, Vice President and Head of Product &Client Solutions – Americas for Aberdeen Standard Investments Inc. ("ASII"), overseeing Product Management & Governance , Product Development and Client Solutions for registered and unregistered investment companies in the U.S., Brazil and Canada. Mr. Goodson is Director and Vice President of ASII and joined ASI in 2000.
|
Heather
Hasson**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1982
|
|
Assistant
Secretary
|
|
Since 2020
|
|
Currently, Senior Product Manager for ASII since 2009. She joined ASII as a Fund Administrator in 2006.
|
52
|
Aberdeen
Standard Global Infrastructure Income Fund
|
Management of the Fund (unaudited)
(continued)
Name, Address and
Year of Birth
|
|
Position(s) Held
with the Fund
|
|
Term of Office*
and Length of
Time Served
|
|
Principal Occupation(s) During Past Five Years
|
Bev
Hendry**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1953
|
|
Vice President
|
|
Since 2020
|
|
Currently Chairman (2018-present), Mr. Hendry was Chief Executive Officer – Americas for Aberdeen Asset Management PLC (2014-2018).
|
Megan
Kennedy**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1974
|
|
Vice President
and Secretary
|
|
Since 2020
|
|
Currently, Director, Product Governance for ASII. Ms. Kennedy joined ASII in 2005.
|
Andrea
Melia**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1969
|
|
Treasurer and
Chief Financial
Officer
|
|
Since 2020
|
|
Currently, Vice President and Director, Product Management for ASII. Ms. Melia joined ASII in September 2009.
|
Jim
O'Connor**
Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1976
|
|
Vice President
|
|
Since 2020
|
|
Currently, Chief Operating Officer – Americas for ASII. Mr. O'Connor joined ASII as US Counsel in 2010 as U.S. Counsel.
|
Christian
Pittard**
Aberdeen Asset
Managers Limited
Bow Bells House,
1 Bread Street
London
United Kingdom
Year of Birth: 1973
|
|
Chief
Executive
Officer and
President
|
|
Since 2020
|
|
Currently, Group Head of Product Opportunities and Director of Aberdeen Asset Management PLC since 2010. Mr. Pittard joined ASI from KPMG in 1999.
|
Lucia
Sitar**
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite 200
Philadelphia, PA 19103
Year of Birth: 1971
|
|
Vice President
|
|
Since 2020
|
|
Currently, Vice President and Head of Product Management and Governance for ASII since 2020. Previously, Ms. Sitar was Managing U.S. Counsel for ASII. She joined ASII as U.S. Counsel in July 2007.
|
|
Aberdeen Standard Global Infrastructure Income Fund
|
53
|
Management
of the Fund (unaudited) (concluded)
|
|
|
|
|
|
|
Name,
Address and
Year of Birth
|
|
Position(s)
Held
with the Fund
|
|
Term
of Office*
and Length of
Time Served
|
|
Principal
Occupation(s) During Past Five Years
|
Ryan
Sullivan
c/o Aberdeen Standard
Investments Inc.,
1900 Market St,
Suite
200
Philadelphia, PA 19103
Year
of Birth: 1985
|
|
Vice
President
|
|
Since
2020
|
|
Currently,
Co-Head of Real Assets at ASII responsible for co-managing the investment program across the private real assets continuum. Mr. Sullivan
was a Vice President at FLAG prior to joining ASII via the firm's acquisition in 2015. Prior to joining FLAG in 2011, Mr. Sullivan
worked for TransCanada Power as an analyst focused on investments in the power generation sector. While at TransCanada, he was part
of a team which managed over 3,500 MW of conventional and renewable power generation assets and was responsible for acquisitions,
development, deal structuring and portfolio management. Mr. Sullivan holds an MBA from Boston College and a BS from Merrimack College.
He is also a CFA charterholder.
|
|
*
|
Officers
hold their positions with the Fund until a successor has been duly elected and qualifies.
Officers are elected annually at a meeting of the Board of Trustees.
|
|
**
|
Messrs.
Andolina, Demetriou, Duitz, Goodson, Hendry, O'Connor and Pittard and Mses. Ferrari, Hasson,
Kennedy, Melia and Sitar hold one or more officer positions with one or more of the following
funds: Aberdeen Australia Equity Fund, Inc., Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen
Funds, Aberdeen Investment Funds, Aberdeen Emerging Markets Equity Income Fund, Inc., Aberdeen
Japan Equity Fund, Inc., The India Fund, Inc., Aberdeen Global Dynamic Dividend Fund, Aberdeen
Total Dynamic Dividend Fund, Aberdeen Global Premier Properties Fund, Aberdeen Standard Global
Infrastructure Income Fund, abdrn ETFs, and Aberdeen Income Credit Strategies Fund each of
which may be deemed to be part of the same "Fund Complex" as the Fund.
|
The
independent Trustees of the Fund have engaged Mr. Martin Gilbert as an advisory consultant to provide ongoing insight into the asset
management industry given his long standing experience in both this sector and the closed end funds arena. The position is not remunerated,
although travel and expenses are reimbursed across all the funds related to the consultancy.
Further
information about the Fund's Trustees and Officers is available in the Fund's Statement of Additional Information, which can be obtained
without charge by calling (800) 522-5465.
54
Aberdeen Standard Global Infrastructure Income Fund
Corporate Information
Trustees
Stephen Bird
Nancy Yao Maasbach
P. Gerald Malone, Chairman
Todd Reit
John Sievwright
Investment Adviser
Aberdeen Standard Investments Inc.
1900 Market Street, Suite 200
Philadelphia, PA19103
Custodian
State Street Bank and Trust Co.
1 Heritage Drive, 3rd Floor
North Quincy, MA 02171
Administrator
Aberdeen Standard Investments Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 505000
Loiusville, 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 D.C. 20006
Investor Relations
Aberdeen Standard Investments Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abdrn.com
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.
Shares of Aberdeen Standard Global Infrastructure Income Fund are traded
on the NYSE under the symbol "ASGI". Information about the Fund's net asset value and market price is available at www.aberdeenasgi.com.
This report, including the financial information herein, is transmitted
to the shareholders of Aberdeen Standard Global Infrastructure Income Fund 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.
ASGI-ANNUAL
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Pursuant to the Registrant's Proxy Voting Policy
and Procedures, the Registrant has delegated responsibility for its proxy voting to its Adviser, provided that the Registrant's Board
of Trustees has the opportunity to periodically review the Adviser's proxy voting policies and material amendments thereto.
The proxy voting policies of the Registrant are
included herewith as Exhibit (c) and policies of the Adviser are included as Exhibit (d).
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) PORTFOLIO MANAGER BIOGRAPHIES
The Fund is managed by abrdn’s Global Equity Team, which
is responsible for the Fund’s public infrastructure investments, and abrdn’s Real Assets Team, which is responsible for the
Fund’s private/direct infrastructure investments. The portfolio managers are responsible for the day-to-day management of their
respective sleeves of the Fund’s overall investment portfolio. As of the date of filing this report, the following individuals have
primary responsibility for the day-to-day management of the Fund’s portfolio:
Individual & Position
|
Services Rendered
|
Past Business Experience
|
Dominic Byrne, CFA®,
Head of Global Equities
|
Responsible for managing global equities
|
Dominic Byrne is Head of Global Equities and is portfolio manager on abrdn’s global and responsible range of equity funds. He joined the firm in 2000 as part of the UK Equity Team at Standard Life (which merged in August 2017 with the Adviser’s parent company to form what is now abrdn plc). In December 2008, he joined the Global Equity Team and has managed a range of global equity strategies. In 2018, he was appointed Deputy Head of Global Equities and in 2020, he became Head of Global Equity. He graduated with a MEng in Engineering Science and is a CFA® charterholder.
|
Martin Connaghan,
Investment Director, Global Equities
|
Responsible for global equity portfolio management
|
Currently, an Investment Director on the Global Equity Team at abrdn. Mr. Connaghan joined Murray Johnstone in 1998, which was subsequently acquired by abrdn in 2001. He has held a number of roles, including Trader and ESG Analyst on the Global Equity Team; he also spent two years as a Portfolio Analyst on the Fixed Income Team in London. He primarily focuses on global and global income mandates.
|
Joshua Duitz,
Deputy Head of the Global Equities Team
|
Responsible for global equity portfolio management
|
Currently, Deputy Head of the Global Equities Team, Mr. Duitz is responsible for managing Aberdeen Standard Global Infrastructure Fund, Aberdeen Total Dynamic Dividend Fund, Aberdeen Global Dynamic Dividend Fund and the Aberdeen Dynamic Dividend Fund (AIFRX, AOD,AGD and ADVDX). He joined ASII in 2018 from Alpine Woods Capital Investors LLC where he was a Portfolio Manager. Previously, Mr. Duitz worked for Bear Stearns where he was a Managing Director, Principal and traded international equities. Prior to that, he worked for Arthur Andersen where he was a senior auditor.
|
Donal Reynolds, CFA®, Investment Director, Global Equities
|
Responsible for global equity portfolio management
|
Donal Reynolds is an Investment Director in the Global Equity Team and is lead Portfolio Manager for the Global Equity SICAV and the Global Focused Funds (OIEC & SICAV), as well as being co-lead of the Global Innovation Fund. He joined abrdn in 2006 as an Investment Process Analyst. In 2010, he transferred to the US Equity Team in Boston as Vice President. In 2014, he was promoted to Senior Vice President, Global Equities. Prior to this, he worked for a number of firms, including BIL-Dexia, ING, JP Morgan and Aegon. He graduated with an MA in Chinese Studies and a BSC in Management. Additionally, he holds the Investment Management Certificate and is a CFA Charterholder.
|
Ryan Sullivan, CFA®,
Head of Indirect Real Assets
|
Responsible for co-managing the investment program across the private real assets spectrum
|
Currently, Head of Indirect Real Assets at abrdn, and responsible for co-managing the investment program across the private real assets spectrum. Mr. Sullivan was a Vice President at FLAG Capital Management prior to joining abrdn via the firm's acquisition in 2015. Prior to joining FLAG in 2011, he worked for TransCanada as an analyst focused on energy infrastructure investments. While at TransCanada, he was part of a team which managed over 3,500 MW of conventional and renewable power generation assets and was responsible for acquisitions, development, deal structuring and portfolio management. He holds an MBA from Boston College and a BS from Merrimack College. He is also a CFA® charterholder.
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(a)(2) OTHER ACCOUNTS MANAGED
BY PORTFOLIO MANAGERS.
The following chart summarizes information regarding
other accounts for which each portfolio manager has day-to-day management responsibilities. Accounts are grouped into the following three
categories: (1) registered investment companies; (2) other pooled investment vehicles; and (3) other accounts. To the extent that any
of these accounts pay advisory fees that are based on account performance (“performance-based fees”), information on those
accounts is provided separately. The figures in the chart below for the category of “registered investment companies” do not
include the Fund. The “Other Accounts Managed” represents the accounts managed by the teams of which the portfolio manager
is a member. The information in the table below is as of September 30, 2021.
Name of
Portfolio Manager
|
|
Type of Accounts
|
|
Other Accounts
Managed
|
|
Total Assets ($M)
|
|
Number of
Accounts
Managed for
Which
Advisory
Fee is Based
on
Performance
|
|
Total Assets for
Which
Advisory Fee is
Based on
Performance ($M)
|
|
Domenic Byrne
|
|
Registered Investment Companies
|
|
7
|
|
$
|
2,214.48
|
|
0
|
|
$
|
0
|
|
|
|
Pooled Investment Vehicles
|
|
42
|
|
$
|
6,038.45
|
|
0
|
|
$
|
0
|
|
|
|
Other Accounts
|
|
15
|
|
$
|
2,333.92
|
|
0
|
|
$
|
0
|
|
Martin Connaghan
|
|
Registered Investment Companies
|
|
7
|
|
$
|
2,214.48
|
|
0
|
|
$
|
0
|
|
|
|
Pooled Investment Vehicles
|
|
42
|
|
$
|
6,038.45
|
|
0
|
|
$
|
0
|
|
|
|
Other Accounts
|
|
15
|
|
$
|
2,333.92
|
|
0
|
|
$
|
0
|
|
Josh Duitz
|
|
Registered Investment Companies
|
|
7
|
|
$
|
2,214.48
|
|
0
|
|
$
|
0
|
|
|
|
Pooled Investment Vehicles
|
|
42
|
|
$
|
6,038.45
|
|
0
|
|
$
|
0
|
|
|
|
Other Accounts
|
|
15
|
|
$
|
2,333.92
|
|
0
|
|
$
|
0
|
|
Donal Reynolds
|
|
Registered Investment Companies
|
|
7
|
|
$
|
2,214.48
|
|
0
|
|
$
|
0
|
|
|
|
Pooled Investment Vehicles
|
|
42
|
|
$
|
6,038.45
|
|
0
|
|
$
|
0
|
|
|
|
Other Accounts
|
|
15
|
|
$
|
2,333.92
|
|
0
|
|
$
|
0
|
|
Ryan Sullivan
|
|
Registered Investment Companies
|
|
0
|
|
$
|
0
|
|
0
|
|
$
|
0
|
|
|
|
Pooled Investment Vehicles
|
|
7
|
|
$
|
424.15
|
|
7
|
|
$
|
424.15
|
|
|
|
Other Accounts
|
|
0
|
|
$
|
0
|
|
0
|
|
$
|
0
|
|
POTENTIAL CONFLICTS OF INTEREST
The Adviser and its affiliates (collectively
referred to herein as “abrdn”) serve as investment advisers for multiple clients, including the Registrant and other
investment companies registered under the 1940 Act and private funds (such clients are also referred to below as
“accounts”). The portfolio managers’ management of “other accounts” may give rise to potential
conflicts of interest in connection with their management of the Registrant’s investments, on the one hand, and the
investments of the other accounts, on the other. The other accounts may have the same investment objective as the Registrant.
Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio
manager could favor one account over another. However, the Adviser believes that these risks are mitigated by the fact that: (i)
accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion,
subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences
in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential
conflicts. In addition, the Adviser has adopted trade allocation procedures that require equitable allocation of trade orders for a
particular security among participating accounts.
In some cases, another account managed by the
same portfolio manager may compensate Aberdeen based on the performance-based fees with qualified clients. The existence of such a performance-based
fee may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment
opportunities.
Another potential conflict could include instances
in which securities considered as investments for the Registrant also may be appropriate for other investment accounts managed by the
Adviser or its affiliates. Whenever decisions are made to buy or sell securities for the Registrant and one or more of the other accounts
simultaneously, the Adviser may aggregate the purchases and sales of the securities and will allocate the securities transactions in a
manner that it believes to be equitable under the circumstances. As a result of the allocations, there may be instances where the Registrant
will not participate in a transaction that is allocated among other accounts. While these aggregation and allocation policies could have
a detrimental effect on the price or amount of the securities available to the Registrant from time to time, it is the opinion of the
Adviser that the benefits from the policies outweigh any disadvantage that may arise from exposure to simultaneous transactions. The Registrant
has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures
adopted under such policies will detect each and every situation in which a conflict arises.
With respect to non-discretionary
model delivery accounts, abrdn will deliver model changes subsequent to commencing trading on behalf of discretionary accounts. Model
changes are typically delivered on a security by security basis. The timing of such delivery is determined by abrdn and will depend on
the anticipated market impact of trading. Market impact includes, but is not limited to, factors such as liquidity and price impact. When
minimal market impact is anticipated, abrdn typically delivers security level model changes after such time when approximately two-thirds
of the full discretionary order has been executed. Although abrdn anticipates delivering model changes of such securities after approximately
two-thirds of the discretionary order has been executed, abrdn may deliver model changes prior to or substantially after two-thirds have
been executed depending on prevailing market conditions and trader discretion. With respect to securities for which abrdn anticipates
a more significant market impact, abrdn intends to withhold model deliver changes until such time when the entire discretionary order
has been fully executed. Anticipated market impact on any given security is determined at the sole discretion of abrdn based on prior
market experience and current market conditions. Actual market impact may vary significantly from anticipated market impact. Notwithstanding
the aforementioned, abrdn may provide order instructions simultaneously or prior to completion of trading for other accounts if the trade
represents a relatively small proportion of the average daily trading volume of the particular security or other instrument.
abrdn does not trade for non-discretionary
model delivery clients. Because model changes may be delivered to non-discretionary model clients prior to the completion of abrdn’s
discretionary account trading, abrdn may compete against these clients in the market when attempting to execute its orders for its discretionary
accounts. As a result, discretionary clients may experience negative price and liquidity impact due to multiple market participants attempting
to trade in a similar direction on the same security.
Timing delays or other operational factors associated
with the implementation of trades may result in non-discretionary and model delivery clients receiving materially different prices relative
to other client accounts. This may create performance dispersions within accounts with the same or similar investment mandate.
(a)(3)
DESCRIPTION OF COMPENSATION STRUCTURE
abrdn’s remuneration policies are designed
to support its business strategy as a leading international asset manager. The objective is to attract, retain and reward talented
individuals for the delivery of sustained, superior returns for abrdn’s clients and shareholders. abrdn operates in a highly
competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.
abrdn’s policy is to recognize corporate and
individual achievements each year through an appropriate annual bonus scheme. The bonus is a single, fully discretionary variable pay
award. The aggregate value of awards in any year is dependent on the group’s overall performance and profitability. Consideration
is also given to the levels of bonuses paid in the market. Individual awards, which are payable to all members of staff, are determined
by a rigorous assessment of achievement against defined objectives.
The variable pay award is composed of a mixture
of cash and a deferred award, the portion of which varies based on the size of the award. Deferred awards are by default abrdn plc
shares, with an option to put up to 50% of the deferred award into funds managed by abrdn. Overall compensation packages are designed
to be competitive relative to the investment management industry.
Base Salary
abrdn’s policy is to pay a fair salary commensurate
with the individual’s role, responsibilities and experience, and having regard to the market rates being offered for similar roles
in the asset management sector and other comparable companies. Any increase is generally to reflect inflation and is applied in a manner
consistent with other abrdn employees; any other increases must be justified by reference to promotion or changes in responsibilities.
Annual Bonus
The Remuneration Committee determines the key performance
indicators that will be applied in considering the overall size of the bonus pool. In line with practices amongst other asset management
companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on
the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market.
Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by
the Remuneration Committee.
abrdn has a deferral policy which is intended to
assist in the retention of talent and to create additional alignment of executives’ interests with abrdn’s sustained performance
and, in respect of the deferral into funds managed by abrdn, to align the interest of portfolio managers with our clients.
Staff performance is reviewed formally at least
once a year. The review process evaluates the various aspects that the individual has contributed to abrdn, and specifically, in the case
of portfolio managers, to the relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance
of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to
presenting the team externally are also evaluated.
In the calculation of a portfolio management team’s
bonus, abrdn takes into consideration investment matters (which include the performance of funds, adherence to the company investment
process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations
through key performance indicator scorecards. To the extent performance is factored in, such performance is not judged against any
specific benchmark and is evaluated over the period of a year - January to December. The pre- or after-tax performance of an individual
account is not considered in the determination of a portfolio manager’s discretionary bonus; rather the review process evaluates
the overall performance of the team for all of the accounts the team manages.
Portfolio manager performance on investment matters
is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination
of the team’s and individual’s performance is considered and evaluated.
Although performance is not a substantial
portion of a portfolio manager’s compensation, abrdn also recognizes that fund performance can often be driven by factors
outside one’s control, such as (irrational) markets, and as such pays attention to the effort by portfolio managers to ensure
integrity of our core process by sticking to disciplines and processes set, regardless of momentum and ‘hot’
themes. Short-terming is thus discouraged and trading-oriented managers will thus find it difficult to thrive in the abrdn
environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would
be identified via abrdn’s dynamic compliance monitoring system.
In rendering investment management
services, the Adviser may use the resources of additional investment adviser subsidiaries of abrdn plc. These affiliates have entered
into a memorandum of understanding (“MOU”) pursuant to which investment professionals from each affiliate may render portfolio
management, research or trading services to abrdn clients. Each investment professional who renders portfolio management, research or
trading services under a MOU or personnel sharing arrangement (“Participating Affiliate”) must comply with the provisions
of the Advisers Act, the 1940 Act, the Securities Act of 1933, the Exchange Act, and the Employee Retirement Income Security Act of 1974,
and the laws of states or countries in which the Adviser does business or has clients. No remuneration is paid by the Fund with respect
to the MOU/personnel sharing arrangements.
(a)(4)
Dollar Range of Equity Securities in the
Registrant Beneficially Owned by the Portfolio
Manager as of September 30, 2021
|
|
Dominic Byrne
|
|
None
|
Martin Connaghan
|
|
None
|
Joshua Duitz
|
|
$50,001-$100,000
|
Donal Reynolds
|
|
None
|
Ryan Sullivan
|
|
$10,001-$50,000
|
(b) Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
No such purchases were made by or on behalf of the Registrant during
the period covered by the report.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended September 30, 2021, there were no material
changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.