UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-22132 |
Exact name of registrant as specified in charter: | abrdn Funds |
Address of principal executive offices: | 1900 Market Street, Suite 200 |
Philadelphia, PA 19103 | |
Name and address of agent for service: | Ms. Andrea Melia |
abrdn Inc. | |
1900 Market Street, Suite 200 | |
Philadelphia, PA 19103 | |
Registrant’s telephone number, including area code: | 866-667-9231 |
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2022 |
Item 1. Reports to Shareholders.
Equity Series
Class A - GOPAX ■ | Class C - GOPCX■ | Class R - GOPRX■ | Institutional Class - GOPIX■ | Institutional Service Class - GOPSX |
Class A - ADAVX ■ | Institutional Class - ADVDX |
Class A - GLLAX ■ | Class C - GLLCX■ | Class R - GWLRX■ | Institutional Class - GWLIX■ | Institutional Service Class - GLLSX |
Class A - GEGAX ■ | Class C - GEGCX■ | Class R - GEMRX■ | Institutional Class - ABEMX■ | Institutional Service Class - AEMSX |
Class A - GIGAX ■ | Class C - GIGCX■ | Class R - GIRRX■ | Institutional Class - GIGIX■ | Institutional Service Class - GIGSX |
Class A - JETAX ■ | Institutional Class - JETIX |
Class A - AIAFX ■ | Institutional Class - AIFRX |
Class A - WVCCX ■ | Class C - CPVCX■ | Class R - WPVAX■ | Institutional Class - ABNIX |
Class A - BJBIX ■ | Institutional Class - JIEIX |
Class A - AIAGX ■ | Institutional Class - AIGYX |
Class A - GSXAX ■ | Class C - GSXCX■ | Class R - GNSRX■ | Institutional Class - GSCIX■ | Institutional Service Class - GSXIX |
Class A - GXXAX ■ | Class C - GXXCX■ | Institutional Class - GGLIX■ | Institutional Service Class - GXXIX |
Class A - MLSAX ■ | Class R - GLSRX■ | Institutional Class - GGUIX■ | Institutional Service Class - AELSX |
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2022 Annual Report | 1 |
1 | The MSCI AC World Index captures large- and mid-cap representation across 23 developed markets countries and 23 emerging markets countries. The index covers approximately 85% of the global investable equity opportunity set. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The MSCI Emerging Markets Index captures large- and mid-cap representation across 24 Emerging Markets (EM) countries. With 832 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | Growth stock – A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
5 | The JP Morgan Global Government Bond Index measures the performance of leading Government bond markets based on total return in U.S. currency. It is calculated by JP Morgan, and reflects reinvestment of all applicable dividends, capital gains and interest. |
6 | Kollmeyer, Barbara. “250 years of history is telling investors to bet on Treasury bonds in 2023, Bank of America says.” Market Watch, October 29, 2022. https://www.marketwatch.com/story/250-years-of-history-is-telling-investors- to-bet-on-treasury-bonds-in-2023-bank-of-america-says-11666958942?mod= livecoverage_web. |
7 | The Barclays U.S. Corporate Investment Grade Index is an unmanaged index considered representative of publicly issued, fixed‐rate, nonconvertible, investment‐grade debt securities. |
8 | The ICE BofA Global High Yield Constrained Index tracks the performance of U.S. dollar-, Canadian dollar-, British pound- and euro-denominated below-investment-grade corporate debt publicly issued in the major domestic or eurobond markets. |
9 | The FTSE EPRA/Nareit Global Real Estate Index is a free-float adjusted, market capitalization-weighted index designed to track the performance of listed real estate companies in both developed and emerging countries worldwide. |
10 | The MSCI U.S. REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market. |
2 | 2022 Annual Report |
1 | A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
2 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
3 | Sector/companies associated with goods and services that rely upon consumers and are sensitive to changes in the economy. Examples include retailers and media companies. |
4 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2022 Annual Report | 3 |
4 | 2022 Annual Report |
2022 Annual Report | 5 |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (38.20%) | 2.13% | 2.87% |
w/SC2 | (41.75%) | 0.93% | 2.26% | |
Class C | w/o SC | (38.62%) | 1.45% | 2.16% |
w/SC3 | (39.21%) | 1.45% | 2.16% | |
Class R4 | w/o SC | (38.37%) | 1.81% | 2.52% |
Institutional Service Class4 | w/o SC | (38.07%) | 2.36% | 3.11% |
Institutional Class4 | w/o SC | (37.99%) | 2.47% | 3.18% |
1 | The Fund changed its investment strategies effective June 13, 2019. Performance information for periods prior to June 13, 2019 does not reflect the current investment strategy. In connection with the change in investment strategy, the Fund changed its name from Aberdeen China Opportunities Fund to Aberdeen China A Share Equity Fund. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
6 | 2022 Annual Report |
Asset Allocation | |
Common Stocks | 98.8% |
Short-Term Investment | 1.3% |
Exchange-Traded Funds | 0.5% |
Liabilities in Excess of Other Assets | (0.6%) |
100.0% |
Sectors | |
Information Technology | 20.6% |
Industrials | 18.0% |
Consumer Staples | 17.2% |
Financials | 14.9% |
Health Care | 10.5% |
Consumer Discretionary | 10.0% |
Materials | 5.8% |
Real Estate | 1.8% |
Exchange-Traded Funds | 0.5% |
Energy | -% |
Short-Term Investment | 1.3% |
Liabilities in Excess of Other Assets | (0.6%) |
100.0% |
Amounts listed as “–” are 0% or round to 0%. |
Top Ten Holdings | |
Kweichow Moutai Co. Ltd. | 6.6% |
China Merchants Bank Co. Ltd. | 4.6% |
Centre Testing International Group Co. Ltd. | 4.0% |
Contemporary Amperex Technology Co. Ltd. | 4.0% |
Glodon Co. Ltd. | 3.8% |
LONGi Green Energy Technology Co. Ltd. | 3.8% |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. | 3.7% |
China Tourism Group Duty Free Corp. Ltd. | 3.6% |
Hundsun Technologies, Inc. | 3.5% |
Ping An Insurance Group Co. of China Ltd. | 3.4% |
Countries | |
China | 98.8% |
Other, less than 2% each | 0.5% |
Short-Term Investment | 1.3% |
Liabilities in Excess of Other Assets | (0.6%) |
100.0% |
2022 Annual Report | 7 |
Shares | Value | ||
COMMON STOCKS—98.8% | |||
CHINA—98.8% | |||
Consumer Discretionary—10.0% | |||
China Tourism Group Duty Free Corp. Ltd., A Shares(a)(b)(c) | 12,300 | $ 243,347 | |
China Tourism Group Duty Free Corp. Ltd., A Shares (Stock Connect)(b) | 50,595 | 1,105,916 | |
Fuyao Glass Industry Group Co. Ltd., A Shares(b) | 152,941 | 697,161 | |
Midea Group Co. Ltd., A Shares (Stock Connect)(b) | 186,942 | 1,024,441 | |
3,070,865 | |||
Consumer Staples—17.2% | |||
By-health Co. Ltd., A Shares(b) | 156,488 | 374,364 | |
Chacha Food Co. Ltd., A Shares(b) | 83,100 | 501,877 | |
Foshan Haitian Flavouring & Food Co. Ltd., A Shares(b) | 77,993 | 635,875 | |
Inner Mongolia Yili Industrial Group Co. Ltd., A Shares(b) | 180,600 | 622,496 | |
Kweichow Moutai Co. Ltd., A Shares (Stock Connect)(b) | 10,963 | 2,021,386 | |
Proya Cosmetics Co. Ltd., A Shares(b) | 31,040 | 707,467 | |
Wuliangye Yibin Co. Ltd., A Shares(b) | 24,237 | 441,905 | |
5,305,370 | |||
Energy—0.0% | |||
G3 Exploration Ltd.(c)(d) | 53,000 | – | |
Financials—14.9% | |||
Bank of Ningbo Co. Ltd., A Shares(b) | 247,816 | 804,588 | |
China International Capital Corp. Ltd., A Shares(b) | 40,800 | 193,146 | |
China International Capital Corp. Ltd., H Shares(a) | 322,000 | 447,489 | |
China Merchants Bank Co. Ltd., A Shares(b) | 384,432 | 1,410,901 | |
Ping An Bank Co. Ltd., A Shares(b) | 478,400 | 675,551 | |
Ping An Insurance Group Co. of China Ltd., A Shares(b) | 214,837 | 1,061,090 | |
4,592,765 | |||
Health Care—10.5% | |||
Aier Eye Hospital Group Co. Ltd., A Shares(b) | 234,011 | 789,970 | |
Hangzhou Tigermed Consulting Co. Ltd., A Shares(b) | 58,367 | 663,498 | |
Hangzhou Tigermed Consulting Co. Ltd., H Shares(a) | 14,800 | 100,513 | |
Jiangsu Hengrui Medicine Co. Ltd., A Shares(b) | 100,895 | 553,984 | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A Shares (Stock Connect)(b) | 25,310 | 1,125,491 | |
3,233,456 | |||
Industrials—18.0% | |||
Centre Testing International Group Co. Ltd., A Shares(b) | 483,188 | 1,234,711 | |
Contemporary Amperex Technology Co. Ltd., A Shares(b) | 23,979 | 1,224,146 | |
Guangzhou Baiyun International Airport Co. Ltd., A Shares(b)(c) | 200,400 | 380,001 | |
NARI Technology Co. Ltd., A Shares (Stock Connect)(b) | 180,052 | 601,548 | |
Shanghai International Airport Co. Ltd., A Shares(b)(c) | 32,910 | 239,552 | |
Shanghai M&G Stationery, Inc., A Shares(b) | 139,080 | 765,517 | |
Shenzhen Inovance Technology Co. Ltd., A Shares(b) | 53,489 | 487,491 | |
Sungrow Power Supply Co. Ltd., A Shares (Stock Connect)(b) | 33,778 | 603,693 | |
5,536,659 |
Shares | Value | ||
Information Technology—20.6% | |||
Glodon Co. Ltd., A Shares(b) | 175,989 | $ 1,186,365 | |
Hundsun Technologies, Inc., A Shares(b) | 187,595 | 1,068,694 | |
LONGi Green Energy Technology Co. Ltd., A Shares(b) | 177,788 | 1,167,989 | |
Luxshare Precision Industry Co. Ltd., A Shares(b) | 123,870 | 479,426 | |
Maxscend Microelectronics Co. Ltd., A Shares(b) | 29,480 | 371,154 | |
NAURA Technology Group Co. Ltd., A Shares(b) | 7,500 | 270,874 | |
SG Micro Corp., A Shares(b) | 20,410 | 417,293 | |
Venustech Group, Inc., A Shares(b) | 198,300 | 687,589 | |
Yonyou Network Technology Co. Ltd., A Shares(b) | 201,999 | 675,096 | |
6,324,480 | |||
Materials—5.8% | |||
Anhui Conch Cement Co. Ltd., A Shares(b) | 132,656 | 439,906 | |
Wanhua Chemical Group Co. Ltd., A Shares(b) | 47,817 | 524,964 | |
Yunnan Energy New Material Co. Ltd., A Shares (Stock Connect)(b) | 40,020 | 807,371 | |
1,772,241 | |||
Real Estate—1.8% | |||
China Vanke Co. Ltd., A Shares(b) | 305,073 | 562,505 | |
Total China | 30,398,341 | ||
Total Common Stocks | 30,398,341 | ||
EXCHANGE-TRADED FUNDS—0.5% | |||
KraneShares Bosera MSCI China A 50 Connect Index ETF | 5,675 | 151,636 | |
Total Exchange-Traded Funds | 151,636 | ||
SHORT-TERM INVESTMENT—1.3% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(e) | 380,882 | 380,882 | |
Total Short-Term Investment | 380,882 | ||
Total Investments (Cost $48,734,831)(f)—100.6% | 30,930,859 | ||
Liabilities in Excess of Other Assets—(0.6%) | (169,665) | ||
Net Assets—100.0% | $30,761,194 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program. |
(c) | Non-income producing security. |
(d) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(e) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(f) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ETF | Exchange-Traded Fund |
8 | 2022 Annual Report |
1 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
2 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
3 | Industries associated with goods and services that rely upon consumers and are sensitive to changes in the economy. Examples include retailers and media companies. |
4 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
5 | Also abbreviated as 'xd', this is a share sold without the right to receive the declared dividend payment which is marked as due to those shareholders who are on the share register. The stock market authorities usually specify the date on which a share will begin trading 'xd'. The share price invariably drops when the share goes 'xd' taking the known income of the dividend out of the share price. |
2022 Annual Report | 9 |
10 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022)2 | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (16.34%) | 4.24% | 6.99% |
w/SC3 | (21.16%) | 2.99% | 6.37% | |
Institutional Class4 | w/o SC | (16.12%) | 4.50% | 7.26% |
1 | Returns prior to May 7, 2018 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Performance shown for periods after February 28, 2022 reflects the effects of an accrued liability relating to withholding tax refunds that the Fund previously received and recorded which are being contested by the local tax authority. The accrued liability resulted in a decrease in net assets of approximately 0.87% as of October 31, 2022. |
3 | A 5.75% front-end sales charge was deducted. |
4 | Not subject to any sales charges. |
2022 Annual Report | 11 |
Asset Allocation | |
Common Stocks | 95.6% |
Short-Term Investment | 2.9% |
Preferred Stocks | 1.2% |
Other Assets in Excess of Liabilities | 0.3% |
100.0% |
Sectors | |
Information Technology | 16.9% |
Financials | 15.1% |
Health Care | 14.4% |
Consumer Discretionary | 10.3% |
Industrials | 8.4% |
Consumer Staples | 7.9% |
Utilities | 6.0% |
Materials | 5.8% |
Energy | 4.6% |
Real Estate | 3.9% |
Communication Services | 3.5% |
Short-Term Investment | 2.9% |
Assets in Excess of Other Liabilities | 0.3% |
100.0% |
Top Ten Holdings | |
Apple, Inc. | 3.6% |
Microsoft Corp. | 2.5% |
Alphabet, Inc. | 1.7% |
AbbVie, Inc. | 1.6% |
Genuine Parts Co. | 1.6% |
TotalEnergies SE, ADR | 1.6% |
TJX Cos., Inc. (The) | 1.6% |
Coca-Cola Co. (The) | 1.6% |
Mondelez International, Inc. | 1.6% |
Eli Lilly & Co. | 1.6% |
Countries | |
United States | 54.2% |
France | 7.1% |
United Kingdom | 4.2% |
Germany | 3.9% |
Switzerland | 3.8% |
Netherlands | 3.2% |
Canada | 2.5% |
South Korea | 2.3% |
Brazil | 2.2% |
Finland | 2.0% |
Other, less than 2% each | 11.4% |
Short-Term Investment | 2.9% |
Assets in Excess of Other Liabilities | 0.3% |
100.0% |
12 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—95.6% | |||
AUSTRALIA—0.9% | |||
Materials—0.9% | |||
BHP Group Ltd., ADR | 18,700 | $ 894,234 | |
BRAZIL—2.2% | |||
Industrials—1.4% | |||
CCR SA | 555,600 | 1,393,975 | |
Materials—0.8% | |||
Vale SA, ADR | 66,300 | 857,922 | |
Total Brazil | 2,251,897 | ||
CANADA—2.5% | |||
Energy—1.5% | |||
Enbridge, Inc. | 39,000 | 1,519,050 | |
Materials—1.0% | |||
Barrick Gold Corp. | 64,800 | 973,944 | |
Total Canada | 2,492,994 | ||
CHINA—1.4% | |||
Financials—0.7% | |||
Ping An Insurance Group Co. of China Ltd., H Shares | 184,000 | 736,624 | |
Real Estate—0.7% | |||
China Vanke Co. Ltd., H Shares | 498,900 | 640,252 | |
Total China | 1,376,876 | ||
DENMARK—1.1% | |||
Financials—1.1% | |||
Tryg A/S | 49,300 | 1,066,321 | |
FINLAND—2.0% | |||
Financials—1.2% | |||
Nordea Bank Abp | 121,400 | 1,159,676 | |
Information Technology—0.8% | |||
Nokia OYJ | 181,800 | 807,903 | |
Total Finland | 1,967,579 | ||
FRANCE—7.1% | |||
Consumer Discretionary—1.1% | |||
LVMH Moet Hennessy Louis Vuitton SE | 1,800 | 1,135,790 | |
Consumer Staples—1.3% | |||
Danone SA | 25,800 | 1,282,247 | |
Energy—1.6% | |||
TotalEnergies SE, ADR | 29,500 | 1,615,715 | |
Health Care—1.1% | |||
Sanofi | 12,767 | 1,098,700 | |
Industrials—2.0% | |||
Alstom SA | 38,322 | 788,714 | |
Schneider Electric SE | 9,400 | 1,188,689 | |
1,977,403 | |||
Total France | 7,109,855 | ||
GERMANY—3.9% | |||
Financials—1.3% | |||
Deutsche Boerse AG | 8,000 | 1,300,957 | |
Materials—1.2% | |||
Linde PLC | 3,900 | 1,164,458 |
Shares | Value | ||
Utilities—1.4% | |||
RWE AG | 37,900 | $ 1,458,966 | |
Total Germany | 3,924,381 | ||
HONG KONG—0.5% | |||
Financials—0.5% | |||
Hong Kong Exchanges & Clearing Ltd. | 18,700 | 496,365 | |
ITALY—1.5% | |||
Utilities—1.5% | |||
Enel SpA | 340,000 | 1,518,898 | |
JAPAN—1.8% | |||
Financials—1.0% | |||
Mitsubishi UFJ Financial Group, Inc. | 199,500 | 942,408 | |
Real Estate—0.8% | |||
GLP J-REIT | 800 | 829,666 | |
Total Japan | 1,772,074 | ||
NETHERLANDS—3.2% | |||
Consumer Staples—1.2% | |||
Heineken NV | 14,600 | 1,219,599 | |
Information Technology—2.0% | |||
ASML Holding NV | 1,900 | 891,265 | |
BE Semiconductor Industries NV | 21,400 | 1,090,646 | |
1,981,911 | |||
Total Netherlands | 3,201,510 | ||
NORWAY—0.8% | |||
Communication Services—0.8% | |||
Telenor ASA | 92,700 | 842,445 | |
SINGAPORE—1.3% | |||
Financials—1.3% | |||
Oversea-Chinese Banking Corp. Ltd. | 157,000 | 1,347,701 | |
SOUTH KOREA—1.1% | |||
Materials—1.1% | |||
LG Chem Ltd. | 2,540 | 1,114,650 | |
SPAIN—1.3% | |||
Industrials—1.3% | |||
Ferrovial SA | 54,242 | 1,325,585 | |
SWITZERLAND—3.8% | |||
Consumer Staples—1.2% | |||
Nestle SA | 11,000 | 1,197,447 | |
Financials—1.3% | |||
Zurich Insurance Group AG | 3,150 | 1,342,448 | |
Health Care—1.3% | |||
Roche Holding AG | 4,000 | 1,327,192 | |
Total Switzerland | 3,867,087 | ||
TAIWAN—0.8% | |||
Information Technology—0.8% | |||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 13,700 | 843,235 | |
UNITED KINGDOM—4.2% | |||
Communication Services—1.0% | |||
Vodafone Group PLC, ADR | 89,700 | 1,059,357 | |
Consumer Discretionary—0.5% | |||
Taylor Wimpey PLC | 480,100 | 516,169 |
2022 Annual Report | 13 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
UNITED KINGDOM (continued) | |||
Health Care—1.8% | |||
AstraZeneca PLC, ADR | 21,400 | $ 1,258,534 | |
Dechra Pharmaceuticals PLC | 17,500 | 526,089 | |
1,784,623 | |||
Industrials—0.9% | |||
Melrose Industries PLC | 640,726 | 859,459 | |
Total United Kingdom | 4,219,608 | ||
UNITED STATES—54.2% | |||
Communication Services—1.7% | |||
Alphabet, Inc., Class C(a) | 17,600 | 1,666,016 | |
Consumer Discretionary—8.7% | |||
Aptiv PLC(a) | 10,100 | 919,807 | |
Genuine Parts Co. | 9,100 | 1,618,526 | |
Hanesbrands Inc. | 60,600 | 413,292 | |
Las Vegas Sands Corp.(a) | 32,000 | 1,216,320 | |
Lowe's Cos., Inc. | 7,500 | 1,462,125 | |
Target Corp. | 9,400 | 1,543,950 | |
TJX Cos., Inc. (The) | 22,400 | 1,615,040 | |
8,789,060 | |||
Consumer Staples—4.2% | |||
Coca-Cola Co. (The) | 26,600 | 1,592,010 | |
Kraft Heinz Co. (The) | 27,300 | 1,050,231 | |
Mondelez International, Inc., Class A | 25,600 | 1,573,888 | |
4,216,129 | |||
Energy—1.5% | |||
Williams Cos., Inc. (The) | 46,600 | 1,525,218 | |
Financials—6.7% | |||
Bank of America Corp. | 33,900 | 1,221,756 | |
Blackstone, Inc., Class A | 9,500 | 865,830 | |
Goldman Sachs Group, Inc. (The) | 3,800 | 1,309,138 | |
Huntington Bancshares, Inc. | 76,400 | 1,159,752 | |
Intercontinental Exchange, Inc. | 11,600 | 1,108,612 | |
JPMorgan Chase & Co. | 8,500 | 1,069,980 | |
6,735,068 | |||
Health Care—10.2% | |||
AbbVie, Inc. | 11,100 | 1,625,040 | |
Baxter International, Inc. | 17,400 | 945,690 | |
Bristol-Myers Squibb Co. | 18,000 | 1,394,460 | |
CVS Health Corp. | 12,000 | 1,136,400 | |
Eli Lilly & Co. | 4,300 | 1,556,987 | |
Medtronic PLC | 13,600 | 1,187,824 | |
Merck & Co., Inc. | 10,200 | 1,032,240 | |
UnitedHealth Group, Inc. | 2,400 | 1,332,360 | |
10,211,001 | |||
Industrials—2.8% | |||
FedEx Corp. | 6,300 | 1,009,764 | |
Norfolk Southern Corp. | 4,400 | 1,003,508 | |
Stanley Black & Decker, Inc. | 9,600 | 753,504 | |
2,766,776 |
Shares | Value | ||
Information Technology—12.1% | |||
Amdocs Ltd. | 12,900 | $ 1,113,399 | |
Analog Devices, Inc. | 7,600 | 1,083,912 | |
Apple, Inc. | 23,800 | 3,649,492 | |
Broadcom, Inc. | 2,700 | 1,269,324 | |
Cisco Systems, Inc. | 26,800 | 1,217,524 | |
Fidelity National Information Services, Inc. | 15,200 | 1,261,448 | |
Microsoft Corp. | 11,000 | 2,553,430 | |
12,148,529 | |||
Materials—0.8% | |||
Air Products & Chemicals, Inc. | 3,400 | 851,360 | |
Real Estate—2.4% | |||
American Tower Corp., REIT | 6,100 | 1,263,859 | |
Gaming and Leisure Properties, Inc., REIT | 22,800 | 1,142,736 | |
2,406,595 | |||
Utilities—3.1% | |||
CMS Energy Corp. | 17,900 | 1,021,195 | |
FirstEnergy Corp. | 25,700 | 969,147 | |
NextEra Energy, Inc. | 14,700 | 1,139,250 | |
3,129,592 | |||
Total United States | 54,445,344 | ||
Total Common Stocks | 96,078,639 | ||
PREFERRED STOCKS—1.2% | |||
SOUTH KOREA—1.2% | |||
Information Technology—1.2% | |||
Samsung Electronics Co. Ltd. | 32,000 | 1,195,900 | |
Total Preferred Stocks | 1,195,900 | ||
SHORT-TERM INVESTMENT—2.9% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(b) | 2,895,263 | 2,895,263 | |
Total Short-Term Investment | 2,895,263 | ||
Total Investments (Cost $91,182,871)(c)—99.7% | 100,169,802 | ||
Other Assets in Excess of Liabilities—0.3% | 286,626 | ||
Net Assets—100.0% | $100,456,428 |
(a) | Non-income producing security. |
(b) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
EUR | Euro Currency |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
USD | U.S. Dollar |
14 | 2022 Annual Report |
At October 31, 2022, the Fund held the following forward foreign currency contracts: |
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Euro | ||||||||
01/19/2023 | Morgan Stanley & Co. | USD | 2,548,940 | EUR | 2,600,000 | $2,586,418 | $(37,478) |
2022 Annual Report | 15 |
1 | A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
2 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
3 | A rise in the value of an investment. |
16 | 2022 Annual Report |
established markets.
2022 Annual Report | 17 |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (23.84%) | 3.09% | 4.31% |
w/SC2 | (28.22%) | 1.88% | 3.69% | |
Class C | w/o SC | (24.32%) | 2.43% | 3.64% |
w/SC3 | (24.99%) | 2.43% | 3.64% | |
Class R4 | w/o SC | (24.12%) | 2.70% | 3.96% |
Institutional Service Class4 | w/o SC | (23.62%) | 3.36% | 4.63% |
Institutional Class4 | w/o SC | (23.57%) | 3.45% | 4.66% |
1 | The Fund changed its investment strategies effective February 28, 2022. Performance information for periods prior to February 28, 2022 does not reflect the current investment strategy. In connection with the change in investment strategy, the Fund changed its name from Aberdeen Global Equity Fund to abrdn Emerging Markets ex-China Fund. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
Dividends), MSCI All Country World Index (ACWI) (Net Dividends) and the Consumer Price Index (CPI) over a 10-year period ended October 31, 2022. Effective February 28, 2022, the MSCI Emerging
Markets ex-China Index (Net Dividends) replaced the MSCI ACWI (Net Dividends) as the Fund’s primary benchmark in connection with the change in the Fund’s investment strategy. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses or sales charges. Investors cannot invest directly in market indexes.
18 | 2022 Annual Report |
2022 Annual Report | 19 |
Asset Allocation | |
Common Stocks | 95.7% |
Short-Term Investment | 2.5% |
Preferred Stocks | 1.7% |
Other Assets in Excess of Liabilities | 0.1% |
100.0% |
Sectors | |
Information Technology | 25.6% |
Semiconductors & Semiconductor Equipment | 9.3% |
Technology Hardware, Storage & Peripherals | 6.8% |
Electronic Equipment, Instruments & Components | 6.3% |
IT Services | 3.2% |
Financials | 24.4% |
Consumer Staples | 11.4% |
Materials | 9.8% |
Industrials | 7.5% |
Energy | 6.9% |
Consumer Discretionary | 4.5% |
Health Care | 2.7% |
Utilities | 2.5% |
Communication Services | 1.7% |
Real Estate | 0.4% |
Short-Term Investment | 2.5% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
Top Ten Holdings | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 7.1% |
Samsung Electronics Co. Ltd., GDR | 6.8% |
Housing Development Finance Corp. Ltd. | 3.0% |
Grupo Financiero Banorte SAB de CV | 2.8% |
PTT Exploration & Production PCL | 2.5% |
Raia Drogasil SA | 2.4% |
Hindustan Unilever Ltd. | 2.2% |
Kotak Mahindra Bank Ltd. | 2.2% |
Hon Hai Precision Industry Co. Ltd. | 2.2% |
Delta Electronics, Inc. | 2.0% |
Countries | |
India | 22.7% |
Taiwan | 14.7% |
South Korea | 13.6% |
Brazil | 10.6% |
Mexico | 6.3% |
Thailand | 4.8% |
Indonesia | 4.4% |
Saudi Arabia | 4.1% |
South Africa | 2.5% |
Poland | 2.2% |
Other, less than 2% each | 11.5% |
Short-Term Investment | 2.5% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
20 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—95.7% | |||
AUSTRALIA—1.3% | |||
Materials—1.3% | |||
BHP Group Ltd. | 13,100 | $ 313,192 | |
AUSTRIA—1.4% | |||
Materials—1.4% | |||
Mondi PLC | 20,717 | 353,919 | |
BRAZIL—8.9% | |||
Consumer Discretionary—1.0% | |||
MercadoLibre, Inc.(a) | 273 | 246,142 | |
Consumer Staples—2.4% | |||
Raia Drogasil SA | 115,545 | 588,518 | |
Energy—1.5% | |||
3R Petroleum Oleo E Gas SA(a) | 41,275 | 371,559 | |
Financials—1.2% | |||
B3 SA - Brasil Bolsa Balcao | 100,862 | 293,672 | |
Industrials—2.8% | |||
Localiza Rent a Car SA(a) | 24,999 | 341,386 | |
WEG SA | 43,708 | 340,830 | |
682,216 | |||
Total Brazil | 2,182,107 | ||
CHILE—0.8% | |||
Financials—0.8% | |||
Banco Santander Chile, ADR | 14,368 | 207,330 | |
INDIA—22.7% | |||
Consumer Discretionary—1.0% | |||
Maruti Suzuki India Ltd. | 2,249 | 259,489 | |
Consumer Staples—3.8% | |||
Hindustan Unilever Ltd. | 17,810 | 551,119 | |
ITC Ltd. | 90,480 | 381,767 | |
932,886 | |||
Energy—1.0% | |||
Reliance Industries Ltd. | 7,728 | 238,106 | |
Financials—7.3% | |||
Housing Development Finance Corp. Ltd. | 24,330 | 727,495 | |
Kotak Mahindra Bank Ltd. | 23,596 | 543,186 | |
Piramal Enterprises Ltd. | 9,800 | 100,784 | |
SBI Life Insurance Co. Ltd.(b) | 27,979 | 428,758 | |
1,800,223 | |||
Health Care—1.6% | |||
Piramal Pharma Ltd.(a) | 39,200 | 78,776 | |
Syngene International Ltd.(b) | 41,064 | 313,072 | |
391,848 | |||
Industrials—1.1% | |||
Larsen & Toubro Ltd. | 11,200 | 275,343 | |
Information Technology—2.5% | |||
Infosys Ltd. | 13,054 | 243,554 | |
Tata Consultancy Services Ltd. | 9,624 | 369,910 | |
613,464 | |||
Materials—2.1% | |||
Asian Paints Ltd. | 6,400 | 241,171 | |
UltraTech Cement Ltd. | 3,488 | 283,108 | |
524,279 |
Shares | Value | ||
Real Estate—0.4% | |||
Godrej Properties Ltd.(a) | 6,800 | $ 104,090 | |
Utilities—1.9% | |||
Power Grid Corp. of India Ltd. | 168,102 | 462,586 | |
Total India | 5,602,314 | ||
INDONESIA—4.4% | |||
Communication Services—1.0% | |||
Telkom Indonesia Persero Tbk PT | 869,000 | 244,059 | |
Financials—2.8% | |||
Bank Central Asia Tbk PT | 699,400 | 395,355 | |
Bank Rakyat Indonesia Persero Tbk PT | 951,600 | 283,894 | |
679,249 | |||
Utilities—0.6% | |||
ReNew Energy Global PLC, Class A(a) | 27,438 | 159,415 | |
Total Indonesia | 1,082,723 | ||
ISRAEL—0.6% | |||
Information Technology—0.6% | |||
Nova Ltd.(a) | 1,867 | 137,616 | |
ITALY—1.6% | |||
Consumer Staples—1.6% | |||
Coca-Cola HBC AG | 17,715 | 386,954 | |
MEXICO—6.3% | |||
Consumer Staples—1.2% | |||
Fomento Economico Mexicano SAB de CV, ADR | 4,346 | 311,261 | |
Financials—2.8% | |||
Grupo Financiero Banorte SAB de CV, Class O | 85,691 | 697,577 | |
Industrials—1.0% | |||
Grupo Aeroportuario del Centro Norte SAB de CV, ADR | 3,800 | 242,326 | |
Materials—1.3% | |||
Grupo Mexico SAB de CV | 87,185 | 314,056 | |
Total Mexico | 1,565,220 | ||
NETHERLANDS—1.6% | |||
Information Technology—1.6% | |||
ASM International NV | 680 | 150,429 | |
ASML Holding NV | 536 | 251,431 | |
401,860 | |||
PERU—1.2% | |||
Financials—1.2% | |||
Credicorp Ltd. | 2,011 | 294,330 | |
PHILIPPINES—1.0% | |||
Financials—1.0% | |||
Bank of the Philippine Islands | 141,110 | 234,675 | |
POLAND—2.2% | |||
Consumer Staples—1.1% | |||
Dino Polska SA(a)(b) | 3,939 | 257,108 | |
Industrials—1.1% | |||
InPost SA(a) | 43,576 | 277,780 | |
Total Poland | 534,888 | ||
SAUDI ARABIA—4.1% | |||
Energy—1.9% | |||
Saudi Arabian Oil Co.(b) | 52,079 | 483,320 |
2022 Annual Report | 21 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
SAUDI ARABIA (continued) | |||
Financials—2.2% | |||
Al Rajhi Bank(a) | 11,035 | $ 250,228 | |
Saudi Tadawul Group Holding Co. | 4,904 | 283,076 | |
533,304 | |||
Total Saudi Arabia | 1,016,624 | ||
SOUTH AFRICA—2.5% | |||
Communication Services—0.7% | |||
Vodacom Group, Ltd. | 24,690 | 168,176 | |
Financials—0.8% | |||
Sanlam Ltd. | 67,015 | 195,345 | |
Materials—1.0% | |||
Anglo American Platinum Ltd. | 3,100 | 246,841 | |
Total South Africa | 610,362 | ||
SOUTH KOREA—13.6% | |||
Financials—1.3% | |||
KB Financial Group, Inc., ADR | 9,516 | 319,167 | |
Health Care—1.1% | |||
Samsung Biologics Co. Ltd.(a)(b) | 442 | 271,625 | |
Industrials—1.5% | |||
Samsung Engineering Co. Ltd.(a) | 23,032 | 384,756 | |
Information Technology—8.0% | |||
Samsung Electronics Co. Ltd., GDR | 1,793 | 1,676,212 | |
Samsung SDI Co. Ltd., GDR(b)(c) | 2,237 | 288,289 | |
1,964,501 | |||
Materials—1.7% | |||
LG Chem Ltd. | 955 | 419,091 | |
Total South Korea | 3,359,140 | ||
TAIWAN—14.7% | |||
Consumer Discretionary—2.5% | |||
Makalot Industrial Co. Ltd. | 35,000 | 216,731 | |
momo.com, Inc. | 10,600 | 158,148 | |
Poya International Co. Ltd. | 19,190 | 243,906 | |
618,785 | |||
Information Technology—12.2% | |||
Chroma ATE, Inc. | 41,000 | 223,845 | |
Delta Electronics, Inc. | 62,000 | 493,322 | |
Hon Hai Precision Industry Co. Ltd. | 170,000 | 539,933 | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 119,400 | 1,752,429 | |
3,009,529 | |||
Total Taiwan | 3,628,314 | ||
THAILAND—4.8% | |||
Energy—2.5% | |||
PTT Exploration & Production PCL, Foreign Shares | 129,400 | 618,695 | |
Financials—1.3% | |||
Kasikornbank PCL, Foreign Shares | 86,800 | 333,982 | |
Materials—1.0% | |||
SCG Packaging PCL, Foreign Shares | 177,500 | 242,757 | |
Total Thailand | 1,195,434 | ||
TURKEY—1.3% | |||
Consumer Staples—1.3% | |||
Coca-Cola Icecek AS | 33,694 | 311,206 |
Shares | Value | ||
UNITED STATES—0.7% | |||
Information Technology—0.7% | |||
Globant SA(a) | 870 | $ 164,152 | |
Total Common Stocks | 23,582,360 | ||
PREFERRED STOCKS—1.7% | |||
BRAZIL—1.7% | |||
Financials—1.7% | |||
Banco Bradesco SA, Preferred Shares, ADR, 1.94% | 113,019 | 428,342 | |
Total Preferred Stocks | 428,342 | ||
SHORT-TERM INVESTMENT—2.5% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(d) | 610,605 | 610,605 | |
Total Short-Term Investment | 610,605 | ||
Total Investments (Cost $27,397,865)(e)—99.9% | 24,621,307 | ||
Other Assets in Excess of Liabilities—0.1% | 25,219 | ||
Net Assets—100.0% | $24,646,526 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Illiquid security. |
(d) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(e) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
PLC | Public Limited Company |
22 | 2022 Annual Report |
1 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2 | A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
3 | The MSCI Emerging Markets Index is an unmanaged index considered representative of growth stocks of developing countries. The index is computed using the net return, which withholds applicable taxes for non‐resident investors. |
4 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2022 Annual Report | 23 |
5 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
24 | 2022 Annual Report |
2022 Annual Report | 25 |
Average Annual Total Return (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (37.61%) | (3.59%) | (0.42%) |
w/SC1 | (41.20%) | (4.72%) | (1.01%) | |
Class C | w/o SC | (37.87%) | (4.07%) | (0.98%) |
w/SC2 | (38.43%) | (4.07%) | (0.98%) | |
Class R3 | w/o SC | (37.71%) | (3.73%) | (0.65%) |
Institutional Service Class3 | w/o SC | (37.37%) | (3.23%) | (0.16%) |
Institutional Class3 | w/o SC | (37.26%) | (3.10%) | 0.01% |
1 | A 5.75% front-end sales charge was deducted. |
2 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
3 | Not subject to any sales charges. |
26 | 2022 Annual Report |
Asset Allocation | |
Common Stocks | 88.6% |
Preferred Stocks | 7.8% |
Short-Term Investment | 3.1% |
Other Assets in Excess of Liabilities | 0.5% |
100.0% |
Sectors | |
Financials | 28.5% |
Banks | 16.7% |
Insurance | 5.6% |
Diversified Financial Services | 3.9% |
Capital Markets | 2.3% |
Information Technology | 21.6% |
Consumer Discretionary | 10.3% |
Materials | 9.2% |
Consumer Staples | 8.0% |
Industrials | 6.9% |
Communication Services | 5.0% |
Energy | 2.3% |
Health Care | 2.1% |
Utilities | 1.6% |
Real Estate | 0.9% |
Short-Term Investment | 3.1% |
Assets in Excess of Other Liabilities | 0.5% |
100.0% |
Top Ten Holdings | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 6.8% |
Samsung Electronics Co. Ltd. | 6.0% |
Tencent Holdings Ltd. | 3.9% |
Housing Development Finance Corp. Ltd. | 3.9% |
Alibaba Group Holding Ltd. | 3.5% |
Grupo Financiero Banorte SAB de CV | 3.1% |
SBI Life Insurance Co. Ltd. | 2.7% |
Bank Central Asia Tbk PT | 2.5% |
Kotak Mahindra Bank Ltd. | 2.3% |
PTT Exploration & Production PCL | 2.3% |
Countries | |
China | 24.1% |
India | 16.8% |
South Korea | 9.7% |
Taiwan | 9.5% |
Mexico | 7.8% |
Brazil | 7.5% |
Indonesia | 5.2% |
Thailand | 3.3% |
South Africa | 2.9% |
Hong Kong | 2.6% |
Other, less than 2% each | 7.0% |
Short-Term Investment | 3.1% |
Assets in Excess of Other Liabilities | 0.5% |
100.0% |
2022 Annual Report | 27 |
Shares | Value | ||
COMMON STOCKS—88.6% | |||
AUSTRIA—1.5% | |||
Materials—1.5% | |||
Mondi PLC | 1,937,779 | $ 33,104,051 | |
BRAZIL—5.7% | |||
Consumer Discretionary—1.0% | |||
MercadoLibre, Inc.(a) | 25,842 | 23,299,664 | |
Consumer Staples—1.1% | |||
Raia Drogasil SA | 4,780,456 | 24,348,814 | |
Financials—1.5% | |||
B3 SA - Brasil Bolsa Balcao | 11,774,398 | 34,282,634 | |
Industrials—2.1% | |||
Rumo SA | 6,019,289 | 25,799,450 | |
WEG SA | 2,623,162 | 20,455,128 | |
46,254,578 | |||
Total Brazil | 128,185,690 | ||
CHILE—0.9% | |||
Financials—0.9% | |||
Banco Santander Chile, ADR | 1,419,852 | 20,488,464 | |
CHINA—24.1% | |||
Communication Services—3.9% | |||
Tencent Holdings Ltd. | 3,370,100 | 88,555,353 | |
Consumer Discretionary—8.2% | |||
Alibaba Group Holding Ltd.(a) | 10,186,300 | 79,197,532 | |
China Tourism Group Duty Free Corp. Ltd., A Shares(a)(b) | 651,500 | 12,889,485 | |
China Tourism Group Duty Free Corp. Ltd., A Shares (Stock Connect)(c) | 783,103 | 17,207,403 | |
JD.com, Inc., A Shares(c) | 2,061,219 | 37,535,851 | |
Midea Group Co. Ltd., A Shares (Stock Connect)(c) | 3,684,716 | 20,298,602 | |
Zhongsheng Group Holdings Ltd. | 4,590,000 | 17,420,460 | |
184,549,333 | |||
Consumer Staples—3.2% | |||
Budweiser Brewing Co. APAC Ltd.(b) | 14,281,300 | 30,058,179 | |
Foshan Haitian Flavouring & Food Co. Ltd., A Shares(c) | 2,091,524 | 17,141,968 | |
Kweichow Moutai Co. Ltd., A Shares (Stock Connect)(c) | 142,806 | 26,469,653 | |
73,669,800 | |||
Financials—1.2% | |||
China Merchants Bank Co. Ltd., H Shares | 8,197,500 | 26,837,793 | |
Health Care—2.1% | |||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A Shares (Stock Connect)(c) | 606,297 | 27,102,990 | |
Wuxi Biologics Cayman, Inc.(a)(b) | 4,532,000 | 20,392,379 | |
47,495,369 | |||
Industrials—2.2% | |||
NARI Technology Co. Ltd., A Shares (Stock Connect)(c) | 7,644,311 | 25,673,944 | |
Sungrow Power Supply Co. Ltd., A Shares (Stock Connect)(c) | 1,295,384 | 23,273,556 | |
48,947,500 |
Shares | Value | ||
Information Technology—1.8% | |||
LONGi Green Energy Technology Co. Ltd., A Shares(c) | 4,312,717 | $ 28,481,911 | |
Yonyou Network Technology Co. Ltd., A Shares(c) | 3,757,310 | 12,623,377 | |
41,105,288 | |||
Materials—0.6% | |||
Yunnan Energy New Material Co. Ltd., A Shares (Stock Connect)(c) | 732,674 | 14,858,967 | |
Real Estate—0.9% | |||
China Resources Land Ltd. | 6,344,000 | 19,849,000 | |
Total China | 545,868,403 | ||
HONG KONG—2.6% | |||
Financials—2.6% | |||
AIA Group Ltd. | 5,341,000 | 40,456,955 | |
Hong Kong Exchanges & Clearing Ltd. | 721,065 | 19,139,659 | |
59,596,614 | |||
INDIA—16.8% | |||
Consumer Discretionary—1.1% | |||
Maruti Suzuki India Ltd. | 208,493 | 24,055,894 | |
Consumer Staples—2.0% | |||
Hindustan Unilever Ltd. | 1,502,472 | 46,493,002 | |
Financials—8.9% | |||
Housing Development Finance Corp. Ltd. | 2,931,489 | 87,654,983 | |
Kotak Mahindra Bank Ltd. | 2,271,830 | 52,298,087 | |
SBI Life Insurance Co. Ltd.(b) | 4,050,948 | 62,077,879 | |
202,030,949 | |||
Information Technology—1.9% | |||
Tata Consultancy Services Ltd. | 1,095,742 | 42,116,116 | |
Materials—1.3% | |||
UltraTech Cement Ltd. | 372,920 | 30,268,528 | |
Utilities—1.6% | |||
Power Grid Corp. of India Ltd. | 12,835,978 | 35,322,288 | |
Total India | 380,286,777 | ||
INDONESIA—5.2% | |||
Communication Services—1.1% | |||
Telkom Indonesia Persero Tbk PT | 92,079,900 | 25,860,713 | |
Financials—4.1% | |||
Bank Central Asia Tbk PT | 99,442,800 | 56,212,763 | |
Bank Rakyat Indonesia Persero Tbk PT | 119,373,344 | 35,613,019 | |
91,825,782 | |||
Total Indonesia | 117,686,495 | ||
MEXICO—7.8% | |||
Consumer Staples—1.7% | |||
Fomento Economico Mexicano SAB de CV, ADR | 548,412 | 39,277,267 | |
Financials—3.2% | |||
Grupo Financiero Banorte SAB de CV, Class O | 8,737,247 | 71,126,562 | |
Industrials—1.1% | |||
Grupo Aeroportuario del Sureste SAB de CV, B Shares | 1,044,593 | 24,514,430 |
28 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS (continued) | |||
MEXICO (continued) | |||
Materials—1.8% | |||
Grupo Mexico SAB de CV | 11,264,317 | $ 40,576,102 | |
Total Mexico | 175,494,361 | ||
NETHERLANDS—1.5% | |||
Information Technology—1.5% | |||
ASM International NV | 70,370 | 15,567,230 | |
ASML Holding NV | 40,482 | 18,989,564 | |
34,556,794 | |||
PERU—0.6% | |||
Financials—0.6% | |||
Credicorp Ltd. | 88,980 | 13,023,113 | |
PHILIPPINES—0.6% | |||
Financials—0.6% | |||
Bank of the Philippine Islands | 7,436,934 | 12,368,089 | |
RUSSIA—0.0% | |||
Energy—0.0% | |||
LUKOIL PJSC, ADR(d)(e) | 986,507 | – | |
Novatek PJSC(d)(e) | 3,278,243 | – | |
– | |||
Financials—0.0% | |||
Sberbank of Russia PJSC(a)(d)(e) | 6,211,074 | – | |
Total Russia | – | ||
SAUDI ARABIA—1.0% | |||
Financials—1.0% | |||
Al Rajhi Bank(a) | 999,757 | 22,670,358 | |
SOUTH AFRICA—2.9% | |||
Financials—1.1% | |||
Sanlam Ltd. | 8,312,114 | 24,229,327 | |
Materials—1.8% | |||
Anglo American Platinum Ltd. | 527,273 | 41,984,660 | |
Total South Africa | 66,213,987 | ||
SOUTH KOREA—3.7% | |||
Industrials—1.5% | |||
Samsung Engineering Co. Ltd.(a) | 2,020,173 | 33,747,590 | |
Materials—2.2% | |||
LG Chem Ltd. | 114,237 | 50,131,599 | |
Total South Korea | 83,879,189 | ||
TAIWAN—9.5% | |||
Information Technology—9.5% | |||
Delta Electronics, Inc. | 3,282,000 | 26,114,257 | |
Hon Hai Precision Industry Co. Ltd. | 11,365,000 | 36,096,109 | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 12,710,017 | 152,802,407 | |
215,012,773 | |||
THAILAND—3.3% | |||
Energy—2.3% | |||
PTT Exploration & Production PCL, Foreign Shares | 10,710,200 | 51,208,265 | |
Financials—1.0% | |||
Kasikornbank PCL, Foreign Shares | 5,960,700 | 22,935,090 | |
Total Thailand | 74,143,355 |
Shares | Value | ||
UNITED STATES—0.9% | |||
Information Technology—0.9% | |||
Globant SA(a) | 106,981 | $ 20,185,175 | |
Total Common Stocks | 2,002,763,688 | ||
PREFERRED STOCKS—7.8% | |||
BRAZIL—1.8% | |||
Financials—1.8% | |||
Banco Bradesco SA, Preferred Shares, ADR, 1.94% | 10,736,866 | 40,692,722 | |
SOUTH KOREA—6.0% | |||
Information Technology—6.0% | |||
Samsung Electronics Co. Ltd. | 3,625,053 | 135,475,080 | |
Total Preferred Stocks | 176,167,802 | ||
SHORT-TERM INVESTMENT—3.1% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(f) | 71,047,744 | 71,047,744 | |
Total Short-Term Investment | 71,047,744 | ||
Total Investments (Cost $2,591,401,681)(g)—99.5% | 2,249,979,234 | ||
Other Assets in Excess of Liabilities—0.5% | 11,534,667 | ||
Net Assets—100.0% | $2,261,513,901 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program. |
(d) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(e) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(f) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(g) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
2022 Annual Report | 29 |
1 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2 | A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
3 | Monetary policy decisions are those made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | The MSCI Emerging Markets Index (Net Dividends) is an unmanaged index considered representative of growth stocks of developing countries. The index is computed using the net return, which withholds applicable taxes for non‐resident investors. |
5 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. (See also overweight.) |
6 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
30 | 2022 Annual Report |
2022 Annual Report | 31 |
32 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (37.00%) | (3.84%) | (0.04%) |
w/SC2 | (40.63%) | (4.98%) | (0.63%) | |
Class C | w/o SC | (37.41%) | (4.46%) | (0.71%) |
w/SC3 | (37.89%) | (4.46%) | (0.71%) | |
Class R4 | w/o SC | (37.15%) | (4.09%) | (0.32%) |
Institutional Service Class4 | w/o SC | (36.80%) | (3.52%) | 0.23% |
Institutional Class4 | w/o SC | (36.78%) | (3.49%) | 0.31% |
1 | The Fund changed its investment strategies effective December 1, 2020. Performance information for periods prior to December 1, 2020 does not reflect the current investment strategy. In connection with the change in investment strategy, the Fund changed its name from Aberdeen International Equity Fund to Aberdeen Emerging Markets Sustainable Leaders Fund. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2022 Annual Report | 33 |
Asset Allocation | |
Common Stocks | 90.3% |
Preferred Stocks | 8.4% |
Short-Term Investment | 1.2% |
Other Assets in Excess of Liabilities | 0.1% |
100.0% |
Sectors | |
Financials | 24.4% |
Information Technology | 24.1% |
Consumer Discretionary | 10.1% |
Industrials | 9.7% |
Consumer Staples | 9.5% |
Materials | 5.3% |
Communication Services | 4.7% |
Real Estate | 4.3% |
Health Care | 3.9% |
Utilities | 2.7% |
Short-Term Investment | 1.2% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
Top Ten Holdings | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 6.6% |
Samsung Electronics Co. Ltd. | 6.6% |
Grupo Financiero Banorte SAB de CV | 4.1% |
Housing Development Finance Corp. Ltd. | 4.0% |
Tencent Holdings Ltd. | 3.6% |
Alibaba Group Holding Ltd. | 3.3% |
Arca Continental SAB de CV | 2.7% |
LG Chem Ltd. | 2.5% |
WEG SA | 2.3% |
Bank Central Asia Tbk PT | 2.3% |
Countries | |
China | 26.8% |
India | 16.9% |
Brazil | 9.9% |
Taiwan | 9.5% |
South Korea | 9.1% |
Mexico | 6.8% |
Hong Kong | 4.3% |
Indonesia | 4.1% |
Netherlands | 2.8% |
Other, less than 2% each | 8.5% |
Short-Term Investment | 1.2% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
34 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—90.3% | |||
AUSTRIA—1.6% | |||
Materials—1.6% | |||
Mondi PLC | 108,883 | $ 1,860,103 | |
BRAZIL—8.1% | |||
Consumer Discretionary—0.9% | |||
MercadoLibre, Inc.(a) | 1,169 | 1,053,994 | |
Consumer Staples—3.2% | |||
Adecoagro SA | 151,123 | 1,308,725 | |
Raia Drogasil SA | 440,016 | 2,241,181 | |
3,549,906 | |||
Industrials—2.3% | |||
WEG SA | 338,310 | 2,638,104 | |
Real Estate—1.7% | |||
Multiplan Empreendimentos Imobiliarios SA | 382,815 | 1,953,539 | |
Total Brazil | 9,195,543 | ||
CHILE—1.7% | |||
Financials—1.7% | |||
Banco Santander Chile, ADR | 134,218 | 1,936,766 | |
CHINA—26.8% | |||
Communication Services—3.6% | |||
Tencent Holdings Ltd. | 153,100 | 4,022,974 | |
Consumer Discretionary—7.8% | |||
Alibaba Group Holding Ltd.(a) | 485,300 | 3,773,162 | |
China Tourism Group Duty Free Corp. Ltd., A Shares(a)(b) | 62,500 | 1,236,520 | |
JD.com, Inc., A Shares | 75,650 | 1,377,625 | |
Midea Group Co. Ltd., A Shares (Stock Connect)(b) | 247,229 | 1,361,951 | |
Zhongsheng Group Holdings Ltd. | 298,000 | 1,131,002 | |
8,880,260 | |||
Financials—1.2% | |||
China Merchants Bank Co. Ltd., H Shares | 396,500 | 1,298,101 | |
Health Care—2.5% | |||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A Shares (Stock Connect)(b) | 33,231 | 1,485,509 | |
Wuxi Biologics Cayman, Inc.(a)(c) | 299,500 | 1,347,643 | |
2,833,152 | |||
Industrials—6.9% | |||
Centre Testing International Group Co. Ltd., A Shares(b) | 401,680 | 1,031,837 | |
China Conch Venture Holdings Ltd. | 327,500 | 483,028 | |
Contemporary Amperex Technology Co. Ltd., A Shares(b) | 28,200 | 1,447,216 | |
Estun Automation Co. Ltd., A Shares(b) | 679,094 | 1,826,340 | |
NARI Technology Co. Ltd., A Shares (Stock Connect)(b) | 300,916 | 1,010,647 | |
Sungrow Power Supply Co. Ltd., A Shares (Stock Connect)(b) | 71,942 | 1,292,548 | |
Xinjiang Goldwind Science & Technology Co. Ltd., H Shares | 866,800 | 751,089 | |
7,842,705 | |||
Information Technology—4.2% | |||
GDS Holdings Ltd., A Shares(a) | 315,400 | 352,034 | |
Glodon Co. Ltd., A Shares(b) | 174,040 | 1,179,408 |
Shares | Value | ||
Hundsun Technologies, Inc., A Shares(b) | 331,626 | $ 1,899,165 | |
LONGi Green Energy Technology Co. Ltd., A Shares(b) | 208,887 | 1,379,525 | |
4,810,132 | |||
Real Estate—0.6% | |||
China Vanke Co. Ltd., H Shares | 563,500 | 723,155 | |
Total China | 30,410,479 | ||
HONG KONG—4.3% | |||
Consumer Staples—1.6% | |||
Vitasoy International Holdings Ltd.(a) | 1,024,000 | 1,748,610 | |
Financials—2.7% | |||
AIA Group Ltd. | 264,100 | 2,000,502 | |
Hong Kong Exchanges & Clearing Ltd. | 40,600 | 1,077,670 | |
3,078,172 | |||
Total Hong Kong | 4,826,782 | ||
INDIA—16.9% | |||
Consumer Discretionary—1.4% | |||
Crompton Greaves Consumer Electricals Ltd. | 370,858 | 1,623,170 | |
Consumer Staples—2.0% | |||
Hindustan Unilever Ltd. | 72,584 | 2,246,064 | |
Financials—7.0% | |||
Housing Development Finance Corp. Ltd. | 151,046 | 4,516,454 | |
Kotak Mahindra Bank Ltd. | 72,610 | 1,671,500 | |
SBI Life Insurance Co. Ltd.(c) | 117,286 | 1,797,324 | |
7,985,278 | |||
Health Care—1.4% | |||
Syngene International Ltd.(c) | 208,519 | 1,589,748 | |
Information Technology—1.9% | |||
Tata Consultancy Services Ltd. | 57,260 | 2,200,855 | |
Materials—1.2% | |||
Asian Paints Ltd. | 35,468 | 1,336,541 | |
Utilities—2.0% | |||
Power Grid Corp. of India Ltd. | 803,235 | 2,210,357 | |
Total India | 19,192,013 | ||
INDONESIA—4.1% | |||
Communication Services—1.1% | |||
Telkom Indonesia Persero Tbk PT(d) | 4,594,100 | 1,290,257 | |
Financials—2.3% | |||
Bank Central Asia Tbk PT(d) | 4,500,000 | 2,543,748 | |
Utilities—0.7% | |||
ReNew Energy Global PLC, Class A(a) | 136,209 | 791,374 | |
Total Indonesia | 4,625,379 | ||
KAZAKHSTAN—1.2% | |||
Financials—1.2% | |||
Kaspi.KZ JSC, GDR(c)(d) | 20,934 | 1,370,031 | |
MEXICO—6.8% | |||
Consumer Staples—2.7% | |||
Arca Continental SAB de CV | 373,038 | 3,047,491 | |
Financials—4.1% | |||
Grupo Financiero Banorte SAB de CV, Class O | 574,586 | 4,677,483 | |
Total Mexico | 7,724,974 |
2022 Annual Report | 35 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
NETHERLANDS—2.8% | |||
Information Technology—1.9% | |||
ASM International NV | 4,559 | $ 1,008,541 | |
ASML Holding NV | 2,279 | 1,069,048 | |
2,077,589 | |||
Real Estate—0.9% | |||
CTP NV(c) | 99,768 | 1,034,798 | |
Total Netherlands | 3,112,387 | ||
PHILIPPINES—1.1% | |||
Real Estate—1.1% | |||
Ayala Land, Inc. | 2,773,500 | 1,230,850 | |
POLAND—0.5% | |||
Industrials—0.5% | |||
InPost SA(a) | 81,689 | 520,736 | |
SAUDI ARABIA—1.0% | |||
Financials—1.0% | |||
Al Rajhi Bank(a) | 50,561 | 1,146,514 | |
SOUTH AFRICA—1.4% | |||
Financials—1.4% | |||
Sanlam Ltd. | 542,661 | 1,581,825 | |
SOUTH KOREA—2.5% | |||
Materials—2.5% | |||
LG Chem Ltd. | 6,507 | 2,855,522 | |
TAIWAN—9.5% | |||
Information Technology—9.5% | |||
Chroma ATE, Inc. | 246,000 | 1,343,070 | |
Hon Hai Precision Industry Co. Ltd. | 605,000 | 1,921,526 | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 626,000 | 7,525,898 | |
10,790,494 | |||
Total Common Stocks | 102,380,398 | ||
PREFERRED STOCKS—8.4% | |||
BRAZIL—1.8% | |||
Financials—1.8% | |||
Banco Bradesco SA, Preferred Shares, ADR, 1.94% | 550,302 | 2,085,645 | |
SOUTH KOREA—6.6% | |||
Information Technology—6.6% | |||
Samsung Electronics Co. Ltd. | 198,874 | 7,432,297 | |
Total Preferred Stocks | 9,517,942 | ||
SHORT-TERM INVESTMENT—1.2% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(e) | 1,312,096 | 1,312,096 | |
Total Short-Term Investment | 1,312,096 | ||
Total Investments (Cost $160,153,023)(f)—99.9% | 113,210,436 | ||
Other Assets in Excess of Liabilities—0.1% | 122,019 | ||
Net Assets—100.0% | $113,332,455 |
(a) | Non-income producing security. |
(b) | China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program. |
(c) | Denotes a security issued under Regulation S or Rule 144A. |
(d) | Illiquid security. |
(e) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(f) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
PLC | Public Limited Company |
36 | 2022 Annual Report |
1 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
2 | A competitive advantage that a company has over its peers in the same industry. |
3 | An economy in which products and materials are continuously reused in order to minimize waste. |
2022 Annual Report | 37 |
38 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022)2 | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (29.14%) | 3.46% | 4.38% |
w/SC3 | (32.72%) | 2.24% | 3.76% | |
Institutional Class4 | w/o SC | (28.99%) | 3.71% | 4.64% |
1 | Returns prior to December 3, 2021 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Performance shown for periods after February 1, 2017 reflect the Fund’s receipt of payment from some European jurisdictions related to prior years in accordance with European Union law under Article 63 of the Treaty on the Functioning of the European Union (the “Article 63 EU Tax Reclaims”). The receipt of these extraordinary payments and accrual of anticipated payments increased the Fund’s performance for all periods that include February 2017, October 2017, August 2018, February 2019, September 2019, June 2022, and October 2022 in a manner that may not recur in the future, and the Fund’s performance was significantly higher than it would have been absent receipt of the Article 63 EU Tax Reclaims. At the time of receipt or accrual of the income and related taxes, including any adjustment in taxes previously estimated for similar payments, those payments and accruals resulted in an increase in net assets of approximately 3.1%, 0.3%, 0.9%, and 2.6%, in 2017, 2018, 2019, and 2022, respectively. Past returns would have been higher had the Fund not originally paid the withholding taxes that relate to the EU reclaims that are now being returned. There can be no assurance that the Fund will receive additional Article 63 EU Tax Reclaim payments or maintain this level of performance in the future. |
3 | A 5.75% front-end sales charge was deducted. |
4 | Not subject to any sales charges. |
2022 Annual Report | 39 |
Asset Allocation | |
Common Stocks | 98.2% |
Short-Term Investment | 0.3% |
Other Assets in Excess of Liabilities | 1.5% |
100.0% |
Sectors | |
Health Care | 21.9% |
Industrials | 20.1% |
Financials | 19.6% |
Real Estate | 11.6% |
Information Technology | 9.8% |
Utilities | 5.7% |
Materials | 3.5% |
Consumer Staples | 2.8% |
Communication Services | 1.8% |
Consumer Discretionary | 1.4% |
Short-Term Investment | 0.3% |
Assets in Excess of Other Liabilities | 1.5% |
100.0% |
Top Ten Holdings | |
Samsung SDI Co. Ltd. | 5.3% |
UnitedHealth Group, Inc. | 5.0% |
Tetra Tech, Inc. | 4.9% |
Novo Nordisk AS | 4.3% |
AstraZeneca PLC | 4.2% |
Housing Development Finance Corp. Ltd. | 4.2% |
Prologis, Inc., REIT | 4.1% |
Schneider Electric SE | 4.1% |
AIA Group Ltd. | 3.3% |
Merck & Co., Inc. | 3.2% |
Countries | |
United States | 43.9% |
United Kingdom | 7.9% |
France | 6.7% |
Denmark | 6.0% |
South Korea | 5.3% |
India | 4.2% |
Indonesia | 3.9% |
Hong Kong | 3.3% |
Netherlands | 3.2% |
Australia | 2.2% |
Other, less than 2% each | 11.6% |
Short-Term Investment | 0.3% |
Assets in Excess of Other Liabilities | 1.5% |
100.0% |
40 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—98.2% | |||
AUSTRALIA—2.2% | |||
Real Estate—2.2% | |||
Goodman Group, REIT | 95,132 | $ 1,035,103 | |
BRAZIL—1.6% | |||
Financials—1.6% | |||
Banco Bradesco SA | 235,155 | 757,522 | |
CHINA—1.4% | |||
Health Care—1.4% | |||
Wuxi Biologics Cayman, Inc.(a)(b) | 145,500 | 654,698 | |
DENMARK—6.0% | |||
Health Care—4.3% | |||
Novo Nordisk AS, Class B | 18,268 | 1,986,302 | |
Industrials—0.9% | |||
Vestas Wind Systems AS | 20,715 | 408,369 | |
Utilities—0.8% | |||
Orsted AS(a) | 4,814 | 397,183 | |
Total Denmark | 2,791,854 | ||
FRANCE—6.7% | |||
Financials—2.6% | |||
AXA SA | 47,936 | 1,183,774 | |
Industrials—4.1% | |||
Schneider Electric SE | 15,017 | 1,898,994 | |
Total France | 3,082,768 | ||
HONG KONG—3.3% | |||
Financials—3.3% | |||
AIA Group Ltd. | 204,300 | 1,547,530 | |
INDIA—4.2% | |||
Financials—4.2% | |||
Housing Development Finance Corp. Ltd. | 64,910 | 1,940,886 | |
INDONESIA—3.9% | |||
Financials—2.5% | |||
Bank Rakyat Indonesia Persero Tbk PT | 3,928,695 | 1,172,060 | |
Utilities—1.4% | |||
ReNew Energy Global PLC, Class A(b) | 112,100 | 651,301 | |
Total Indonesia | 1,823,361 | ||
ISRAEL—1.1% | |||
Industrials—1.1% | |||
Kornit Digital Ltd.(b) | 19,273 | 514,974 | |
KENYA—1.8% | |||
Communication Services—1.8% | |||
Safaricom PLC | 4,104,241 | 843,847 | |
MEXICO—1.9% | |||
Financials—1.9% | |||
Gentera SAB de CV | 849,057 | 870,784 | |
NETHERLANDS—3.2% | |||
Information Technology—2.1% | |||
ASML Holding NV | 2,088 | 979,453 | |
Materials—1.1% | |||
Koninklijke DSM NV | 4,130 | 485,813 | |
Total Netherlands | 1,465,266 |
Shares | Value | ||
REPUBLIC OF IRELAND—1.5% | |||
Industrials—1.5% | |||
Kingspan Group PLC | 13,726 | $ 692,019 | |
SOUTH AFRICA—1.1% | |||
Consumer Staples—1.1% | |||
Clicks Group Ltd. | 29,700 | 503,253 | |
SOUTH KOREA—5.3% | |||
Information Technology—5.3% | |||
Samsung SDI Co. Ltd. | 4,708 | 2,428,928 | |
TAIWAN—1.2% | |||
Industrials—1.2% | |||
Voltronic Power Technology Corp. | 13,610 | 551,805 | |
UNITED KINGDOM—7.9% | |||
Health Care—4.2% | |||
AstraZeneca PLC | 16,673 | 1,956,278 | |
Industrials—2.7% | |||
RELX PLC | 46,603 | 1,251,779 | |
Utilities—1.0% | |||
SSE PLC | 24,801 | 443,216 | |
Total United Kingdom | 3,651,273 | ||
UNITED STATES—43.9% | |||
Consumer Discretionary—1.4% | |||
Coursera, Inc.(b) | 51,235 | 660,419 | |
Consumer Staples—1.7% | |||
Darling Ingredients, Inc.(b) | 9,831 | 771,537 | |
Financials—3.5% | |||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 34,901 | 948,609 | |
Live Oak Bancshares, Inc. | 20,164 | 654,725 | |
1,603,334 | |||
Health Care—12.0% | |||
GSK PLC | 49,149 | 805,114 | |
Insulet Corp.(b) | 3,753 | 971,314 | |
Merck & Co., Inc. | 14,607 | 1,478,228 | |
UnitedHealth Group, Inc. | 4,176 | 2,318,306 | |
5,572,962 | |||
Industrials—8.6% | |||
Johnson Controls International PLC | 18,589 | 1,075,188 | |
Shoals Technologies Group, Inc., Class A(b) | 29,211 | 675,066 | |
Tetra Tech, Inc. | 16,025 | 2,264,012 | |
4,014,266 | |||
Information Technology—2.4% | |||
Analog Devices, Inc. | 7,832 | 1,117,000 | |
Materials—2.4% | |||
Crown Holdings, Inc. | 16,088 | 1,103,476 | |
Real Estate—9.4% | |||
American Tower Corp., REIT | 5,326 | 1,103,494 | |
Equinix, Inc., REIT | 2,389 | 1,353,225 | |
Prologis, Inc., REIT | 17,342 | 1,920,627 | |
4,377,346 | |||
Utilities—2.5% | |||
NextEra Energy, Inc. | 14,766 | 1,144,365 | |
Total United States | 20,364,705 | ||
Total Common Stocks | 45,520,576 |
2022 Annual Report | 41 |
Shares | Value | ||
SHORT-TERM INVESTMENT—0.3% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 161,466 | $ 161,466 | |
Total Short-Term Investment | 161,466 | ||
Total Investments (Cost $45,600,870)(d)—98.5% | 45,682,042 | ||
Other Assets in Excess of Liabilities—1.5% | 688,254 | ||
Net Assets—100.0% | $46,370,296 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Non-income producing security. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
42 | 2022 Annual Report |
1 | The Dow Jones Industrial Average is an unmanaged index that tracks 30 blue-chip US Stocks. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | Data was released by the Bureau of Economic Analysis (https://www.bea.gov/news/2022/gross-domestic-product-third-quarter-2022-advance-estimate). |
3 | If the price of a fund or asset moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
4 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2022 Annual Report | 43 |
5 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
44 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (11.04%) | 3.76% | 6.79% |
w/SC2 | (16.17%) | 2.53% | 6.16% | |
Institutional Class3 | w/o SC | (10.78%) | 4.03% | 7.06% |
1 | Returns prior to May 7, 2018 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | Not subject to any sales charges. |
2022 Annual Report | 45 |
Asset Allocation | |
Common Stocks | 98.4% |
Short-Term Investment | 0.7% |
Rights | –% |
Other Assets in Excess of Liabilities | 0.9% |
100.0% |
Sectors | |
Industrials | 38.3% |
Transportation Infrastructure | 16.3% |
Road & Rail | 10.6% |
Construction & Engineering | 9.1% |
Commercial Services & Supplies | 2.3% |
Utilities | 30.0% |
Independent Power Producers & Energy Traders | 10.9% |
Multi-Utilities | 9.8% |
Electric Utilities | 9.3% |
Communication Services | 13.8% |
Energy | 9.9% |
Real Estate | 4.1% |
Materials | 2.1% |
Information Technology | 0.2% |
Rights | -% |
Short-Term Investment | 0.7% |
Assets in Excess of Other Liabilities | 0.9% |
100.0% |
Top Ten Holdings | |
Kinder Morgan, Inc. | 3.5% |
Williams Cos., Inc. (The) | 3.3% |
Canadian Pacific Railway Ltd. | 3.1% |
Enbridge, Inc. | 3.1% |
RWE AG | 3.0% |
Ferrovial SA | 3.0% |
CCR SA | 2.7% |
Vinci SA | 2.6% |
Engie SA | 2.6% |
NextEra Energy, Inc. | 2.5% |
Countries | |
United States | 34.3% |
France | 10.4% |
Spain | 9.6% |
Brazil | 6.2% |
Canada | 6.2% |
Italy | 5.5% |
United Kingdom | 5.4% |
Germany | 5.2% |
Mexico | 2.7% |
Argentina | 2.5% |
Philippines | 2.0% |
Other, less than 2% each | 8.4% |
Short-Term Investment | 0.7% |
Assets in Excess of Other Liabilities | 0.9% |
100.0% |
Amounts listed as “–” are 0% or round to 0%. |
46 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—98.4% | |||
ARGENTINA—2.5% | |||
Industrials—1.5% | |||
Corp. America Airports SA(a) | 90,300 | $ 709,758 | |
Materials—1.0% | |||
Loma Negra Cia Industrial Argentina SA, ADR | 66,800 | 450,232 | |
Total Argentina | 1,159,990 | ||
BRAZIL—6.2% | |||
Industrials—4.9% | |||
CCR SA | 511,400 | 1,283,079 | |
Rumo SA | 237,100 | 1,016,241 | |
2,299,320 | |||
Utilities—1.3% | |||
Omega Energia SA(a) | 294,907 | 613,736 | |
Total Brazil | 2,913,056 | ||
CANADA—6.2% | |||
Energy—3.1% | |||
Enbridge, Inc. | 37,000 | 1,441,597 | |
Industrials—3.1% | |||
Canadian Pacific Railway Ltd. | 19,700 | 1,467,453 | |
Total Canada | 2,909,050 | ||
CHINA—1.0% | |||
Industrials—0.8% | |||
COSCO SHIPPING Ports Ltd. | 733,775 | 361,855 | |
Information Technology—0.2% | |||
GDS Holdings Ltd., ADR(a) | 10,400 | 89,752 | |
Total China | 451,607 | ||
COLOMBIA—0.7% | |||
Communication Services—0.7% | |||
Millicom International Cellular SA(a) | 29,410 | 319,199 | |
FRANCE—10.4% | |||
Industrials—5.9% | |||
Eiffage SA | 11,000 | 994,639 | |
Getlink SE | 37,600 | 595,001 | |
Vinci SA | 13,200 | 1,214,888 | |
2,804,528 | |||
Utilities—4.5% | |||
Engie SA | 93,100 | 1,209,681 | |
Veolia Environnement SA | 40,000 | 892,640 | |
2,102,321 | |||
Total France | 4,906,849 | ||
GERMANY—5.2% | |||
Communication Services—1.3% | |||
Vantage Towers AG | 21,845 | 614,380 | |
Industrials—0.9% | |||
Fraport AG Frankfurt Airport Services Worldwide(a) | 10,900 | 419,935 | |
Utilities—3.0% | |||
RWE AG | 37,000 | 1,424,320 | |
Total Germany | 2,458,635 | ||
INDONESIA—0.9% | |||
Communication Services—0.9% | |||
Sarana Menara Nusantara Tbk PT | 5,845,200 | 432,688 |
Shares | Value | ||
ITALY—5.5% | |||
Communication Services—1.7% | |||
Infrastrutture Wireless Italiane SpA(b) | 92,200 | $ 813,772 | |
Industrials—0.9% | |||
Atlantia SpA | 18,000 | 401,535 | |
Materials—1.1% | |||
Buzzi Unicem SpA | 31,200 | 517,820 | |
Utilities—1.8% | |||
Enel SpA | 191,200 | 854,157 | |
Total Italy | 2,587,284 | ||
JAPAN—0.7% | |||
Industrials—0.7% | |||
East Japan Railway Co. | 6,100 | 325,041 | |
LUXEMBOURG—1.1% | |||
Communication Services—1.1% | |||
SES SA | 74,100 | 525,587 | |
MALAYSIA—1.5% | |||
Industrials—1.5% | |||
Malaysia Airports Holdings Bhd(a) | 550,100 | 695,528 | |
MEXICO—2.7% | |||
Industrials—2.7% | |||
Grupo Aeroportuario del Centro Norte SAB de CV | 70,900 | 565,396 | |
Promotora y Operadora de Infraestructura SAB de CV | 96,400 | 725,153 | |
1,290,549 | |||
NORWAY—0.9% | |||
Communication Services—0.9% | |||
Telenor ASA | 46,300 | 420,768 | |
PHILIPPINES—2.0% | |||
Industrials—2.0% | |||
International Container Terminal Services, Inc. | 318,200 | 953,858 | |
SPAIN—9.6% | |||
Communication Services—2.4% | |||
Cellnex Telecom SA(b) | 35,200 | 1,152,104 | |
Industrials—5.1% | |||
Aena SME SA(a)(b) | 8,400 | 987,264 | |
Ferrovial SA | 56,791 | 1,387,879 | |
2,375,143 | |||
Utilities—2.1% | |||
EDP Renovaveis SA | 47,300 | 995,309 | |
Total Spain | 4,522,556 | ||
TANZANIA—1.6% | |||
Communication Services—1.6% | |||
Helios Towers PLC(a) | 525,000 | 754,316 | |
UNITED KINGDOM—5.4% | |||
Communication Services—1.8% | |||
IHS Holding Ltd.(a) | 41,500 | 247,755 | |
Vodafone Group PLC | 502,900 | 587,086 | |
834,841 | |||
Industrials—1.2% | |||
National Express Group PLC(a) | 295,500 | 572,830 |
2022 Annual Report | 47 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
UNITED KINGDOM (continued) | |||
Utilities—2.4% | |||
National Grid PLC, ADR | 11,200 | $ 611,744 | |
SSE PLC | 28,900 | 516,468 | |
1,128,212 | |||
Total United Kingdom | 2,535,883 | ||
UNITED STATES—34.3% | |||
Communication Services—1.4% | |||
DISH Network Corp., Class A(a) | 15,200 | 226,632 | |
Verizon Communications, Inc. | 11,000 | 411,070 | |
637,702 | |||
Energy—6.8% | |||
Kinder Morgan, Inc. | 91,700 | 1,661,605 | |
Williams Cos., Inc. (The) | 47,000 | 1,538,310 | |
3,199,915 | |||
Industrials—7.1% | |||
CoreCivic, Inc., REIT(a) | 31,000 | 324,570 | |
Dycom Industries, Inc.(a) | 5,400 | 638,172 | |
Norfolk Southern Corp. | 3,400 | 775,438 | |
Union Pacific Corp. | 4,400 | 867,416 | |
Waste Connections, Inc. | 5,700 | 751,887 | |
3,357,483 | |||
Real Estate—4.1% | |||
American Tower Corp., REIT | 5,100 | 1,056,669 | |
Crown Castle, Inc., REIT, REIT | 6,400 | 852,864 | |
1,909,533 | |||
Utilities—14.9% | |||
American Electric Power Co., Inc. | 9,500 | 835,240 | |
CenterPoint Energy, Inc. | 34,400 | 984,184 | |
Clearway Energy, Inc., Class C | 20,600 | 715,644 | |
CMS Energy Corp. | 15,900 | 907,095 | |
FirstEnergy Corp. | 26,400 | 995,544 | |
NextEra Energy Partners LP | 8,800 | 651,816 | |
NextEra Energy, Inc. | 15,100 | 1,170,250 | |
Vistra Corp. | 32,000 | 735,040 | |
6,994,813 | |||
Total United States | 16,099,446 | ||
Total Common Stocks | 46,261,890 | ||
RIGHTS—0.0% | |||
Omega Energia SA(a) | 45,781 | 177 | |
Total Rights | 177 | ||
SHORT-TERM INVESTMENT—0.7% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 314,397 | 314,397 | |
Total Short-Term Investment | 314,397 | ||
Total Investments (Cost $43,229,281)(d)—99.1% | 46,576,464 | ||
Other Assets in Excess of Liabilities—0.9% | 418,432 | ||
Net Assets—100.0% | $46,994,896 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
48 | 2022 Annual Report |
1 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
2 | A ratio that reflects the valuation of a target company in relation to a specific financial metric to facilitate the comparison of two different companies. |
3 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2022 Annual Report | 49 |
50 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (40.19%) | 1.00% | 4.61% |
w/SC2 | (43.63%) | (0.19%) | 3.99% | |
Class C | w/o SC | (40.57%) | 0.34% | 3.91% |
w/SC3 | (41.12%) | 0.34% | 3.91% | |
Class R4 | w/o SC | (40.36%) | 0.69% | 4.30% |
Institutional Class4 | w/o SC | (39.97%) | 1.36% | 4.96% |
1 | The Fund changed its investment strategy effective February 29, 2016. Performance information for periods prior to February 29, 2016 does not reflect the current investment strategy. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2022 Annual Report | 51 |
Asset Allocation | |
Common Stocks | 97.6% |
Preferred Stocks | 1.1% |
Short-Term Investment | 1.1% |
Other Assets in Excess of Liabilities | 0.2% |
100.0% |
Sectors | |
Industrials | 27.9% |
Commercial Services & Supplies | 5.6% |
Transportation Infrastructure | 5.0% |
Life Sciences Tools & Services | 3.8% |
Professional Services | 3.7% |
Construction & Engineering | 3.0% |
Electrical Equipment | 2.7% |
Trading Companies & Distributors | 2.6% |
Life Sciences Tools & Services | 1.5% |
Information Technology | 17.4% |
Health Care | 13.7% |
Consumer Staples | 10.9% |
Communication Services | 8.2% |
Consumer Discretionary | 7.5% |
Financials | 5.4% |
Materials | 5.1% |
Energy | 2.6% |
Short-Term Investment | 1.1% |
Assets in Excess of Other Liabilities | 0.2% |
100.0% |
Top Ten Holdings | |
Grupo Aeroportuario del Sureste SAB de CV | 5.0% |
CyberArk Software Ltd. | 4.1% |
Jamieson Wellness, Inc. | 3.4% |
Interparfums SA | 3.3% |
Chroma ATE, Inc. | 3.3% |
CTS Eventim AG & Co. KGaA | 3.2% |
WNS Holdings Ltd., ADR | 3.2% |
Affle India Ltd. | 3.1% |
Daiseki Co Ltd | 3.1% |
SHO-BOND Holdings Co. Ltd. | 3.0% |
Countries | |
India | 11.5% |
Japan | 11.4% |
United Kingdom | 10.4% |
Australia | 6.3% |
Taiwan | 6.0% |
Canada | 6.0% |
France | 5.9% |
Germany | 5.3% |
United States | 5.2% |
South Korea | 5.1% |
Mexico | 5.0% |
Israel | 3.5% |
Sweden | 2.7% |
Poland | 2.6% |
Belgium | 2.6% |
Switzerland | 2.3% |
Other, less than 2% each | 6.9% |
Short-Term Investment | 1.1% |
Assets in Excess of Other Liabilities | 0.2% |
100.0% |
52 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—97.6% | |||
AUSTRALIA—6.3% | |||
Consumer Discretionary—2.6% | |||
IDP Education Ltd. | 239,400 | $ 4,516,709 | |
Financials—2.7% | |||
Steadfast Group Ltd. | 1,489,195 | 4,824,613 | |
Industrials—1.0% | |||
IPH Ltd. | 287,300 | 1,827,172 | |
Total Australia | 11,168,494 | ||
BELGIUM—2.6% | |||
Industrials—2.6% | |||
Azelis Group NV | 200,218 | 4,582,374 | |
CANADA—6.0% | |||
Consumer Staples—3.4% | |||
Jamieson Wellness, Inc.(a) | 247,521 | 6,055,621 | |
Industrials—2.6% | |||
Ritchie Bros Auctioneers, Inc. | 71,845 | 4,693,511 | |
Total Canada | 10,749,132 | ||
FRANCE—5.9% | |||
Consumer Staples—3.3% | |||
Interparfums SA | 124,201 | 5,987,634 | |
Energy—2.6% | |||
Gaztransport Et Technigaz SA | 39,358 | 4,578,851 | |
Total France | 10,566,485 | ||
GERMANY—4.2% | |||
Communication Services—3.2% | |||
CTS Eventim AG & Co. KGaA(b) | 119,925 | 5,724,800 | |
Financials—1.0% | |||
Hypoport SE(b) | 19,000 | 1,855,834 | |
Total Germany | 7,580,634 | ||
HONG KONG—1.5% | |||
Industrials—1.5% | |||
Pacific Basin Shipping Ltd. | 10,745,800 | 2,601,589 | |
INDIA—11.5% | |||
Communication Services—3.1% | |||
Affle India Ltd.(b) | 400,370 | 5,581,662 | |
Health Care—5.2% | |||
Sanofi India Ltd. | 61,774 | 4,205,177 | |
Syngene International Ltd.(a) | 654,970 | 4,993,488 | |
9,198,665 | |||
Information Technology—3.2% | |||
WNS Holdings Ltd., ADR(b) | 65,853 | 5,668,626 | |
Total India | 20,448,953 | ||
INDONESIA—1.1% | |||
Consumer Discretionary—1.1% | |||
Ace Hardware Indonesia Tbk PT | 55,980,500 | 2,026,354 | |
ISRAEL—3.5% | |||
Consumer Discretionary—1.3% | |||
Maytronics Ltd. | 222,025 | 2,393,991 | |
Information Technology—2.2% | |||
Nova Ltd.(b) | 53,156 | 3,918,129 | |
Total Israel | 6,312,120 |
Shares | Value | ||
JAPAN—11.4% | |||
Industrials—11.4% | |||
Daiseki Co Ltd | 177,400 | $ 5,481,564 | |
Nabtesco Corp. | 225,500 | 4,789,709 | |
SHO-BOND Holdings Co. Ltd. | 123,400 | 5,338,292 | |
TechnoPro Holdings, Inc. | 200,400 | 4,807,666 | |
20,417,231 | |||
MEXICO—5.0% | |||
Industrials—5.0% | |||
Grupo Aeroportuario del Sureste SAB de CV, B Shares | 379,803 | 8,913,188 | |
NETHERLANDS—1.2% | |||
Information Technology—1.2% | |||
BE Semiconductor Industries NV | 42,536 | 2,167,837 | |
POLAND—2.6% | |||
Consumer Staples—2.6% | |||
Dino Polska SA(a)(b) | 71,711 | 4,680,742 | |
SOUTH AFRICA—1.6% | |||
Consumer Staples—1.6% | |||
Clicks Group Ltd. | 164,844 | 2,793,206 | |
SOUTH KOREA—5.1% | |||
Materials—5.1% | |||
Chunbo Co. Ltd. | 27,937 | 4,273,038 | |
Hansol Chemical Co. Ltd. | 36,542 | 4,746,140 | |
9,019,178 | |||
SWEDEN—2.7% | |||
Communication Services—1.0% | |||
Hemnet Group AB | 143,785 | 1,786,311 | |
Financials—1.7% | |||
Nordnet AB publ | 251,835 | 3,119,687 | |
Total Sweden | 4,905,998 | ||
SWITZERLAND—2.3% | |||
Health Care—2.3% | |||
SKAN Group AG | 67,000 | 4,064,062 | |
TAIWAN—6.0% | |||
Industrials—2.7% | |||
Voltronic Power Technology Corp. | 120,500 | 4,885,566 | |
Information Technology—3.3% | |||
Chroma ATE, Inc. | 1,074,000 | 5,863,646 | |
Total Taiwan | 10,749,212 | ||
UNITED KINGDOM—10.4% | |||
Communication Services—0.9% | |||
Future PLC | 116,139 | 1,627,642 | |
Consumer Discretionary—2.5% | |||
Games Workshop Group PLC | 59,801 | 4,389,618 | |
Health Care—5.1% | |||
Dechra Pharmaceuticals PLC | 162,629 | 4,888,994 | |
Genus PLC | 146,057 | 4,268,592 | |
9,157,586 | |||
Information Technology—1.9% | |||
Endava PLC, ADR(b) | 44,359 | 3,381,930 | |
Total United Kingdom | 18,556,776 |
2022 Annual Report | 53 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
UNITED STATES—5.2% | |||
Health Care—1.1% | |||
Inmode Ltd.(b) | 56,878 | $ 1,952,053 | |
Information Technology—4.1% | |||
CyberArk Software Ltd.(b) | 46,986 | 7,372,573 | |
Total United States | 9,324,626 | ||
VIETNAM—1.5% | |||
Information Technology—1.5% | |||
FPT Corp. | 856,140 | 2,605,100 | |
Total Common Stocks | 174,233,291 | ||
PREFERRED STOCKS—1.1% | |||
GERMANY—1.1% | |||
Industrials—1.1% | |||
Jungheinrich AG | 81,488 | 2,025,063 | |
Total Preferred Stocks | 2,025,063 | ||
SHORT-TERM INVESTMENT—1.1% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 1,947,367 | 1,947,367 | |
Total Short-Term Investment | 1,947,367 | ||
Total Investments (Cost $222,202,021)(d)—99.8% | 178,205,721 | ||
Other Assets in Excess of Liabilities—0.2% | 277,447 | ||
Net Assets—100.0% | $178,483,168 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Non-income producing security. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
54 | 2022 Annual Report |
1 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
2 | Index considered representative of developed and emerging market stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non‐resident investors. |
2022 Annual Report | 55 |
3 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
56 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022)2 | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (36.53%) | (2.50%) | 1.54% |
w/SC3 | (39.88%) | (3.64%) | 0.95% | |
Institutional Class4 | w/o SC | (36.37%) | (2.44%) | 1.14% |
1 | Returns prior to December 3, 2021 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Performance shown for periods after December 16, 2016 reflect the Fund’s receipt of payment from some European jurisdictions related to prior years in accordance with European Union law under Article 63 of the Treaty on the Functioning of the European Union (the “Article 63 EU Tax Reclaims”). The receipt of these extraordinary payments and accrual of anticipated payments increased the Fund’s performance for all periods that include December 2016, February 2017, July 2017, October 2017, February 2019, March 2019, September 2019, June 2022, and October 2022 in a manner that may not recur in the future, and the Fund’s performance was significantly higher than it would have been absent receipt of the Article 63 EU Tax Reclaims. At the time of receipt or accrual of the income and related taxes, including any adjustments to taxes previously estimated for similar payments, those payments and accruals resulted in an increase in net assets of approximately 5.4%, 2.1%, and 1.4%, in 2017, 2019, and 2022, respectively. Past returns would have been higher had the Fund not originally paid the withholding taxes that relate to the EU reclaims that are now being returned. There can be no assurance that the Fund will receive additional Article 63 EU Tax Reclaim payments or maintain this level of performance in the future. |
3 | A 5.75% front-end sales charge was deducted. |
4 | Not subject to any sales charges. |
2022 Annual Report | 57 |
Asset Allocation | |
Common Stocks | 96.8% |
Short-Term Investment | 2.7% |
Other Assets in Excess of Liabilities | 0.5% |
100.0% |
Sectors | |
Health Care | 20.4% |
Information Technology | 19.2% |
Financials | 18.0% |
Consumer Staples | 11.0% |
Industrials | 10.1% |
Materials | 10.1% |
Consumer Discretionary | 3.4% |
Real Estate | 2.8% |
Utilities | 1.8% |
Short-Term Investment | 2.7% |
Assets in Excess of Other Liabilities | 0.5% |
100.0% |
Top Ten Holdings | |
Genmab AS | 4.2% |
Cochlear Ltd. | 4.0% |
Nestle SA | 4.0% |
Housing Development Finance Corp. Ltd. | 3.9% |
L'Oreal SA | 3.6% |
AIA Group Ltd. | 3.6% |
Novo Nordisk AS | 3.4% |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 3.3% |
Koninklijke DSM NV | 3.0% |
DBS Group Holdings Ltd. | 3.0% |
Countries | |
Denmark | 12.1% |
United Kingdom | 9.8% |
Australia | 8.9% |
Japan | 8.5% |
France | 8.3% |
Netherlands | 7.5% |
India | 5.5% |
Switzerland | 4.0% |
Hong Kong | 3.6% |
Taiwan | 3.3% |
Singapore | 3.0% |
Germany | 2.8% |
Sweden | 2.7% |
South Korea | 2.7% |
United States | 2.3% |
South Africa | 2.0% |
Other, less than 2% each | 9.8% |
Short-Term Investment | 2.7% |
Assets in Excess of Other Liabilities | 0.5% |
100.0% |
58 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—96.8% | |||
AUSTRALIA—8.9% | |||
Financials—2.1% | |||
Steadfast Group Ltd. | 520,999 | $ 1,687,904 | |
Health Care—4.0% | |||
Cochlear Ltd. | 25,829 | 3,299,490 | |
Real Estate—2.8% | |||
Goodman Group, REIT | 208,932 | 2,273,327 | |
Total Australia | 7,260,721 | ||
BELGIUM—1.0% | |||
Industrials—1.0% | |||
Azelis Group NV | 35,310 | 808,137 | |
BRAZIL—1.5% | |||
Consumer Discretionary—1.5% | |||
MercadoLibre, Inc.(a) | 1,400 | 1,262,268 | |
CANADA—1.2% | |||
Financials—1.2% | |||
CI Financial Corp. | 99,316 | 994,363 | |
CHINA—1.8% | |||
Health Care—1.8% | |||
Wuxi Biologics Cayman, Inc.(a)(b) | 323,500 | 1,455,636 | |
DENMARK—12.1% | |||
Financials—2.7% | |||
Tryg A/S | 103,128 | 2,230,580 | |
Health Care—7.6% | |||
Genmab AS(a) | 8,924 | 3,437,592 | |
Novo Nordisk AS, Class B | 25,209 | 2,741,006 | |
6,178,598 | |||
Utilities—1.8% | |||
Orsted AS(b) | 17,924 | 1,478,833 | |
Total Denmark | 9,888,011 | ||
FRANCE—8.3% | |||
Consumer Staples—3.6% | |||
L'Oreal SA | 9,381 | 2,945,673 | |
Industrials—2.7% | |||
Schneider Electric SE | 17,702 | 2,238,529 | |
Information Technology—2.0% | |||
Dassault Systemes SE | 47,300 | 1,585,438 | |
Total France | 6,769,640 | ||
GERMANY—2.8% | |||
Materials—2.8% | |||
Linde PLC | 7,748 | 2,313,390 | |
HONG KONG—3.6% | |||
Financials—3.6% | |||
AIA Group Ltd. | 386,800 | 2,929,929 | |
INDIA—5.5% | |||
Financials—3.9% | |||
Housing Development Finance Corp. Ltd. | 107,323 | 3,209,085 | |
Materials—1.6% | |||
Asian Paints Ltd. | 34,100 | 1,284,991 | |
Total India | 4,494,076 |
Shares | Value | ||
INDONESIA—1.5% | |||
Financials—1.5% | |||
Bank Rakyat Indonesia Persero Tbk PT | 4,085,800 | $ 1,218,929 | |
JAPAN—8.5% | |||
Consumer Discretionary—1.9% | |||
Sony Group Corp. | 23,200 | 1,564,483 | |
Health Care—2.5% | |||
Chugai Pharmaceutical Co. Ltd. | 89,600 | 2,076,198 | |
Industrials—1.5% | |||
SHO-BOND Holdings Co. Ltd. | 27,900 | 1,206,956 | |
Information Technology—2.6% | |||
Keyence Corp. | 5,700 | 2,149,271 | |
Total Japan | 6,996,908 | ||
LATVIA—0.0% | |||
Financials—0.0% | |||
AS Parex Banka(a)(c)(d) | 1,424,182 | – | |
NETHERLANDS—7.5% | |||
Information Technology—4.5% | |||
Adyen NV(a)(b) | 1,134 | 1,618,897 | |
ASML Holding NV | 4,519 | 2,119,802 | |
3,738,699 | |||
Materials—3.0% | |||
Koninklijke DSM NV | 20,854 | 2,453,063 | |
Total Netherlands | 6,191,762 | ||
NEW ZEALAND—1.4% | |||
Information Technology—1.4% | |||
Xero Ltd.(a) | 23,080 | 1,146,122 | |
POLAND—1.4% | |||
Consumer Staples—1.4% | |||
Dino Polska SA(a)(b) | 18,000 | 1,174,902 | |
SINGAPORE—3.0% | |||
Financials—3.0% | |||
DBS Group Holdings Ltd. | 101,000 | 2,441,807 | |
SOUTH AFRICA—2.0% | |||
Consumer Staples—2.0% | |||
Clicks Group Ltd. | 98,534 | 1,669,613 | |
SOUTH KOREA—2.7% | |||
Information Technology—2.7% | |||
Samsung SDI Co. Ltd. | 4,349 | 2,243,714 | |
SWEDEN—2.7% | |||
Industrials—2.7% | |||
Atlas Copco AB, A Shares | 210,968 | 2,251,714 | |
SWITZERLAND—4.0% | |||
Consumer Staples—4.0% | |||
Nestle SA | 30,051 | 3,271,316 | |
TAIWAN—3.3% | |||
Information Technology—3.3% | |||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 43,544 | 2,680,133 | |
UNITED KINGDOM—9.8% | |||
Health Care—2.2% | |||
Dechra Pharmaceuticals PLC | 59,675 | 1,793,965 |
2022 Annual Report | 59 |
Shares | Value | ||
COMMON STOCKS (continued) | |||
UNITED KINGDOM (continued) | |||
Industrials—2.2% | |||
Spirax-Sarco Engineering PLC | 14,541 | $ 1,791,938 | |
Information Technology—2.7% | |||
AVEVA Group PLC | 62,507 | 2,237,013 | |
Materials—2.7% | |||
Croda International PLC | 28,594 | 2,215,164 | |
Total United Kingdom | 8,038,080 | ||
UNITED STATES—2.3% | |||
Health Care—2.3% | |||
ResMed, Inc. | 8,429 | 1,885,483 | |
Total Common Stocks | 79,386,654 | ||
SHORT-TERM INVESTMENT—2.7% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(e) | 2,185,046 | 2,185,046 | |
Total Short-Term Investment | 2,185,046 | ||
Total Investments (Cost $107,613,276)(f)—99.5% | 81,571,700 | ||
Other Assets in Excess of Liabilities—0.5% | 441,785 | ||
Net Assets—100.0% | $82,013,485 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(d) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(e) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(f) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
60 | 2022 Annual Report |
1 | If the price of a fund or market moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
2 | Consumer Price Index (CPI) – a measure of inflation. An index of the cost of all goods and services to a typical consumer. |
3 | The FTSE EPRA/NAREIT Global Index is an unmanaged index considered representative of real estate companies and REITs. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
4 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
5 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
2022 Annual Report | 61 |
62 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (19.45%) | 3.33% | 6.67% |
w/SC2 | (24.09%) | 2.11% | 6.04% | |
Institutional Class3 | w/o SC | (19.24%) | 3.59% | 6.94% |
1 | Returns prior to May 7, 2018 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | Not subject to any sales charges. |
2022 Annual Report | 63 |
Asset Allocation | |
Common Stocks | 96.4% |
Short-Term Investment | 4.0% |
Liabilities in Excess of Other Assets | (0.4%) |
100.0% |
Sub-Industries | |
Specialized REITs | 27.8% |
Retail REITs | 17.4% |
Residential REITs | 15.6% |
Industrial REITs | 15.0% |
Health Care REITs | 9.2% |
Office REITs | 7.0% |
Hotel & Resort REITs | 4.4% |
Short-Term Investment | 4.0% |
Liabilities in Excess of Other Assets | (0.4%) |
100.0% |
Top Ten Holdings | |
Prologis, Inc., REIT | 11.9% |
Public Storage | 6.3% |
Realty Income Corp. | 5.3% |
Equinix, Inc., REIT | 4.9% |
VICI Properties, Inc. | 4.2% |
Welltower, Inc. | 3.7% |
Extra Space Storage, Inc. | 3.3% |
AvalonBay Communities, Inc. | 3.3% |
Equity Residential | 3.1% |
Invitation Homes, Inc. | 3.1% |
Countries | |
United States | 96.4% |
Short-Term Investment | 4.0% |
Liabilities in Excess of Other Assets | (0.4%) |
100.0% |
64 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—96.4% | |||
UNITED STATES—96.4% | |||
Health Care REITs—9.2% | |||
Omega Healthcare Investors, Inc. | 26,900 | $ 854,882 | |
Sabra Health Care REIT, Inc. | 47,313 | 646,296 | |
Ventas, Inc. | 21,353 | 835,543 | |
Welltower, Inc. | 25,158 | 1,535,644 | |
3,872,365 | |||
Hotel & Resort REITs—4.4% | |||
DiamondRock Hospitality Co. | 66,633 | 622,352 | |
Host Hotels & Resorts, Inc. | 64,040 | 1,209,075 | |
1,831,427 | |||
Industrial REITs—15.0% | |||
Americold Realty Trust, Inc. | 24,136 | 585,298 | |
Prologis, Inc. | 45,216 | 5,007,672 | |
STAG Industrial, Inc. | 22,233 | 702,340 | |
6,295,310 | |||
Office REITs—7.0% | |||
Alexandria Real Estate Equities, Inc. | 7,458 | 1,083,647 | |
Boston Properties, Inc. | 11,677 | 848,918 | |
Cousins Properties, Inc. | 12,217 | 290,276 | |
Equity Commonwealth | 27,800 | 727,248 | |
2,950,089 | |||
Residential REITs—15.6% | |||
American Homes 4 Rent, Class A | 21,324 | 681,089 | |
AvalonBay Communities, Inc. | 7,803 | 1,366,461 | |
Equity LifeStyle Properties, Inc. | 11,390 | 728,504 | |
Equity Residential | 20,972 | 1,321,656 | |
Invitation Homes, Inc. | 40,912 | 1,296,501 | |
Mid-America Apartment Communities, Inc. | 7,393 | 1,164,028 | |
6,558,239 | |||
Retail REITs—17.4% | |||
Brixmor Property Group, Inc. | 35,109 | 748,173 | |
Kimco Realty Corp. | 47,525 | 1,016,085 | |
National Retail Properties, Inc. | 25,108 | 1,055,289 | |
Realty Income Corp. | 35,893 | 2,235,057 | |
Simon Property Group, Inc. | 9,531 | 1,038,688 | |
SITE Centers Corp. | 35,180 | 435,529 | |
Spirit Realty Capital, Inc. | 19,476 | 756,253 | |
7,285,074 | |||
Specialized REITs—27.8% | |||
American Tower Corp. | 2,764 | 572,673 | |
Digital Realty Trust, Inc. | 10,066 | 1,009,117 | |
Equinix, Inc. | 3,638 | 2,060,709 | |
Extra Space Storage, Inc. | 7,740 | 1,373,386 | |
Gaming and Leisure Properties, Inc. | 24,185 | 1,212,152 | |
Life Storage, Inc. | 6,197 | 685,450 | |
Public Storage | 8,526 | 2,640,928 | |
SBA Communications Corp. | 1,212 | 327,119 | |
VICI Properties, Inc. | 55,793 | 1,786,492 | |
11,668,026 | |||
Total United States | 40,460,530 | ||
Total Common Stocks | 40,460,530 |
Shares | Value | ||
SHORT-TERM INVESTMENT—4.0% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(a) | 1,696,494 | $ 1,696,494 | |
Total Short-Term Investment | 1,696,494 | ||
Total Investments (Cost $35,675,219)(b)—100.4% | 42,157,024 | ||
Liabilities in Excess of Other Assets—(0.4%) | (167,697) | ||
Net Assets—100.0% | $41,989,327 |
(a) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
REIT | Real Estate Investment Trust |
2022 Annual Report | 65 |
1 | The Dow Jones Industrial Average is an unmanaged index that tracks 30 blue-chip U.S. Stocks. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | Data was released by the Bureau of Economic Analysis (https://www.bea.gov/news/2022/gross-domestic-product-third-quarter-2022-advance-estimate). |
3 | The S&P 500 Index is an unmanaged index considered representative of the broader U.S. stock market. |
4 | The Russell 2000 Value Index is an unmanaged index considered representative of small-cap value stocks. |
5 | The Russell 2000 Growth Index is an unmanaged index considered representative of small-cap growth stocks. |
66 | 2022 Annual Report |
2022 Annual Report | 67 |
Average Annual Total Return (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (23.82%) | 6.76% | 12.04% |
w/SC1 | (28.19%) | 5.51% | 11.38% | |
Class C | w/o SC | (24.30%) | 6.06% | 11.28% |
w/SC2 | (24.86%) | 6.06% | 11.28% | |
Class R3 | w/o SC | (24.04%) | 6.41% | 11.72% |
Institutional Service Class3 | w/o SC | (23.64%) | 7.05% | 12.34% |
Institutional Class3 | w/o SC | (23.54%) | 7.13% | 12.40% |
1 | A 5.75% front-end sales charge was deducted. |
2 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
3 | Not subject to any sales charges. |
68 | 2022 Annual Report |
Asset Allocation | |
Common Stocks | 99.0% |
Short-Term Investment | 0.9% |
Other Assets in Excess of Liabilities | 0.1% |
100.0% |
Sectors | |
Industrials | 22.1% |
Financials | 20.7% |
Information Technology | 15.8% |
Consumer Discretionary | 12.5% |
Health Care | 9.3% |
Consumer Staples | 7.0% |
Materials | 5.7% |
Communication Services | 2.2% |
Energy | 2.2% |
Utilities | 1.5% |
Short-Term Investment | 0.9% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
Top Ten Holdings | |
Atkore, Inc. | 2.9% |
First Interstate BancSystem, Inc. | 2.7% |
Materion Corp. | 2.6% |
Graphic Packaging Holding Co. | 2.6% |
WNS Holdings Ltd., ADR | 2.6% |
CyberArk Software Ltd. | 2.5% |
Cohu, Inc. | 2.4% |
Aritzia, Inc. | 2.4% |
EnPro Industries, Inc. | 2.4% |
Perficient, Inc. | 2.2% |
Countries | |
United States | 87.1% |
Canada | 9.3% |
India | 2.6% |
Short-Term Investment | 0.9% |
Assets in Excess of Other Liabilities | 0.1% |
100.0% |
2022 Annual Report | 69 |
Shares | Value | ||
COMMON STOCKS—99.0% | |||
CANADA—9.3% | |||
Consumer Discretionary—2.3% | |||
Aritzia, Inc.(a) | 446,222 | $ 17,307,131 | |
Consumer Staples—1.6% | |||
Jamieson Wellness, Inc.(b) | 476,956 | 11,668,766 | |
Financials—3.3% | |||
CI Financial Corp. | 1,322,688 | 13,242,900 | |
TMX Group Ltd. | 110,865 | 10,658,860 | |
23,901,760 | |||
Industrials—2.1% | |||
ATS Automation Tooling Systems, Inc.(a) | 481,109 | 15,220,610 | |
Total Canada | 68,098,267 | ||
INDIA—2.6% | |||
Information Technology—2.6% | |||
WNS Holdings Ltd., ADR(a) | 216,889 | 18,669,805 | |
UNITED STATES—87.1% | |||
Communication Services—2.2% | |||
Cogent Communications Holdings, Inc. | 118,707 | 6,233,305 | |
TechTarget, Inc.(a) | 155,875 | 10,061,731 | |
16,295,036 | |||
Consumer Discretionary—10.2% | |||
Dorman Products, Inc.(a) | 189,174 | 15,440,382 | |
LCI Industries | 97,444 | 10,339,783 | |
LGI Homes, Inc.(a) | 73,962 | 6,808,202 | |
Monro, Inc. | 243,288 | 11,617,002 | |
National Vision Holdings, Inc.(a) | 412,006 | 15,260,702 | |
Stride, Inc.(a) | 433,590 | 14,529,601 | |
73,995,672 | |||
Consumer Staples—5.4% | |||
elf Beauty, Inc.(a) | 376,201 | 16,274,455 | |
Hostess Brands, Inc.(a) | 590,976 | 15,649,045 | |
SunOpta, Inc.(a) | 658,715 | 7,397,369 | |
39,320,869 | |||
Energy—2.2% | |||
ChampionX Corp. | 562,045 | 16,085,728 | |
Financials—17.4% | |||
American Equity Investment Life Holding Co. | 294,069 | 12,668,492 | |
Banner Corp. | 114,785 | 8,580,179 | |
Donnelley Financial Solutions, Inc.(a) | 391,467 | 15,827,011 | |
First Interstate BancSystem, Inc., Class A | 425,459 | 19,405,185 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 276,818 | 7,523,913 | |
Live Oak Bancshares, Inc. | 223,621 | 7,260,974 | |
PJT Partners, Inc., Class A | 210,760 | 15,680,544 | |
PRA Group, Inc.(a) | 423,533 | 14,188,355 | |
Seacoast Banking Corp. of Florida | 376,554 | 11,635,519 | |
Wintrust Financial Corp. | 145,248 | 13,598,118 | |
126,368,290 | |||
Health Care—9.3% | |||
CONMED Corp. | 132,716 | 10,581,447 | |
CryoPort, Inc.(a) | 362,646 | 10,067,053 | |
Harmony Biosciences Holdings, Inc.(a) | 205,095 | 10,664,940 | |
Heska Corp.(a) | 140,031 | 10,048,625 |
Shares | Value | ||
Integer Holdings Corp.(a) | 211,110 | $ 13,158,486 | |
Ligand Pharmaceuticals, Inc.(a) | 153,507 | 13,454,888 | |
67,975,439 | |||
Industrials—20.0% | |||
Ameresco, Inc., Class A(a) | 210,358 | 12,722,452 | |
ArcBest Corp. | 176,070 | 13,985,240 | |
Atkore, Inc.(a) | 223,198 | 21,270,769 | |
AZEK Co., Inc. (The)(a) | 603,925 | 10,574,727 | |
Brady Corp., Class A | 157,925 | 7,225,069 | |
Casella Waste Systems, Inc., Class A(a) | 198,198 | 16,214,578 | |
EnPro Industries, Inc. | 161,256 | 17,173,764 | |
Helios Technologies, Inc. | 9,875 | 559,814 | |
Parsons Corp.(a) | 266,234 | 12,481,050 | |
RBC Bearings, Inc.(a) | 32,091 | 8,136,031 | |
Shyft Group, Inc. | 462,222 | 10,621,861 | |
Werner Enterprises, Inc. | 370,468 | 14,522,346 | |
145,487,701 | |||
Information Technology—13.2% | |||
Cohu, Inc.(a) | 536,789 | 17,671,094 | |
CyberArk Software Ltd.(a) | 117,106 | 18,375,102 | |
Onto Innovation, Inc.(a) | 213,911 | 14,297,811 | |
Perficient, Inc.(a) | 245,496 | 16,440,867 | |
Verint Systems, Inc.(a) | 427,136 | 15,133,429 | |
Workiva, Inc.(a) | 181,834 | 14,148,504 | |
96,066,807 | |||
Materials—5.7% | |||
Graphic Packaging Holding Co. | 817,503 | 18,769,869 | |
Materion Corp. | 222,111 | 19,037,134 | |
Ranpak Holdings Corp.(a) | 975,444 | 3,706,687 | |
41,513,690 | |||
Utilities—1.5% | |||
ONE Gas, Inc. | 136,736 | 10,594,305 | |
Total United States | 633,703,537 | ||
Total Common Stocks | 720,471,609 | ||
SHORT-TERM INVESTMENT—0.9% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 6,336,367 | 6,336,367 | |
Total Short-Term Investment | 6,336,367 | ||
Total Investments (Cost $802,628,660)(d)—99.9% | 726,807,976 | ||
Other Assets in Excess of Liabilities—0.1% | 1,035,956 | ||
Net Assets—100.0% | $727,843,932 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
70 | 2022 Annual Report |
1 | The Russell 3000® Index measures the performance of the largest 3,000 US companies representing approximately 96% of the investable US equity market, as of the most recent reconstitution |
2 | The Dow Jones Industrial Average is an unmanaged index that tracks 30 blue-chip U.S. Stocks. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
3 | Data was released by the Bureau of Economic Analysis (https://www.bea.gov/news/2022/gross-domestic-product-third-quarter-2022-advance-estimate). |
2022 Annual Report | 71 |
72 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (27.49%) | 8.59% | 10.00% |
w/SC2 | (31.67%) | 7.31% | 9.34% | |
Class C | w/o SC | (27.96%) | 7.82% | 9.20% |
w/SC3 | (28.45%) | 7.82% | 9.20% | |
Institutional Service Class4 | w/o SC | (27.32%) | 8.84% | 10.23% |
Institutional Class4 | w/o SC | (27.29%) | 8.92% | 10.33% |
1 | The Fund changed its investment strategies effective December 1, 2020. Performance information for periods prior to December 1, 2020 does not reflect the current investment strategy. In connection with the change in investment strategy, the Fund changed its name from Aberdeen U.S. Multi-Cap Equity Fund to abrdn U.S. Sustainable Leaders Fund. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2022 Annual Report | 73 |
Asset Allocation | |
Common Stocks | 96.3% |
Short-Term Investment | 3.7% |
Liabilities in Excess of Other Assets | (0.0%) |
100.0% |
Sectors | |
Information Technology | 27.1% |
Software | 12.8% |
IT Services | 10.3% |
Semiconductors & Semiconductor Equipment | 4.0% |
Industrials | 19.7% |
Health Care | 13.2% |
Financials | 10.5% |
Consumer Staples | 9.0% |
Consumer Discretionary | 5.4% |
Utilities | 4.7% |
Energy | 2.9% |
Materials | 2.3% |
Communication Services | 1.5% |
Short-Term Investment | 3.7% |
Liabilities in Excess of Other Assets | (0.0%) |
100.0% |
Top Ten Holdings | |
Microsoft Corp. | 9.3% |
Mastercard, Inc. | 4.7% |
Merck & Co., Inc. | 4.3% |
Tetra Tech, Inc. | 3.9% |
NICE Ltd., ADR | 3.6% |
LPL Financial Holdings, Inc. | 3.5% |
Colgate-Palmolive Co. | 3.5% |
Canadian National Railway Co. | 3.4% |
Amdocs Ltd. | 3.4% |
Jamieson Wellness, Inc. | 3.2% |
Countries | |
United States | 79.6% |
Canada | 10.6% |
Israel | 3.5% |
Ireland | 2.6% |
Short-Term Investment | 3.7% |
Liabilities in Excess of Other Assets | (0.0%) |
100.0% |
74 | 2022 Annual Report |
Shares | Value | ||
COMMON STOCKS—96.3% | |||
CANADA—10.6% | |||
Consumer Staples—3.2% | |||
Jamieson Wellness, Inc.(a) | 446,372 | $ 10,920,526 | |
Financials—1.9% | |||
CI Financial Corp. | 619,365 | 6,201,151 | |
Industrials—5.5% | |||
ATS Automation Tooling Systems, Inc.(b) | 223,629 | 7,074,841 | |
Canadian National Railway Co. | 97,492 | 11,546,953 | |
18,621,794 | |||
Total Canada | 35,743,471 | ||
IRELAND—2.6% | |||
Health Care—2.6% | |||
ICON PLC(b) | 43,820 | 8,669,349 | |
ISRAEL—3.5% | |||
Information Technology—3.5% | |||
NICE Ltd., ADR(b) | 62,974 | 11,958,133 | |
UNITED STATES—79.6% | |||
Communication Services—1.5% | |||
Cable One, Inc. | 5,903 | 5,073,215 | |
Consumer Discretionary—5.4% | |||
Burlington Stores, Inc.(b) | 56,701 | 8,105,975 | |
Home Depot, Inc. | 33,814 | 10,013,340 | |
18,119,315 | |||
Consumer Staples—5.8% | |||
Colgate-Palmolive Co. | 159,464 | 11,774,822 | |
Darling Ingredients, Inc.(b) | 100,656 | 7,899,483 | |
19,674,305 | |||
Energy—2.9% | |||
New Fortress Energy, Inc. | 174,750 | 9,623,483 | |
Financials—8.6% | |||
American Express Co. | 59,275 | 8,799,374 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 131,722 | 3,580,204 | |
LPL Financial Holdings, Inc. | 46,531 | 11,895,650 | |
SVB Financial Group(b) | 20,984 | 4,846,464 | |
29,121,692 | |||
Health Care—10.6% | |||
CONMED Corp. | 72,886 | 5,811,201 | |
Horizon Therapeutics PLC(b) | 103,867 | 6,472,991 | |
Integer Holdings Corp.(b) | 148,132 | 9,233,068 | |
Merck & Co., Inc. | 141,297 | 14,299,256 | |
35,816,516 | |||
Industrials—14.2% | |||
Advanced Drainage Systems, Inc. | 56,770 | 6,578,508 | |
Atkore, Inc.(b) | 73,564 | 7,010,649 | |
Chart Industries, Inc.(b) | 35,538 | 7,920,710 | |
Tetra Tech, Inc. | 93,351 | 13,188,629 | |
Trex Co., Inc.(b) | 96,789 | 4,654,583 | |
Vertiv Holdings Co. | 580,856 | 8,312,049 | |
47,665,128 | |||
Information Technology—23.6% | |||
Accenture PLC, Class A | 25,917 | 7,357,836 | |
Amdocs Ltd. | 131,744 | 11,370,825 | |
Marvell Technology, Inc. | 182,423 | 7,238,545 |
Shares | Value | ||
Mastercard, Inc., Class A | 48,068 | $ 15,774,956 | |
Microsoft Corp. | 135,549 | 31,464,989 | |
SolarEdge Technologies, Inc.(b) | 27,696 | 6,370,911 | |
79,578,062 | |||
Materials—2.3% | |||
Crown Holdings, Inc. | 114,143 | 7,829,068 | |
Utilities—4.7% | |||
American Water Works Co., Inc. | 56,947 | 8,276,677 | |
CenterPoint Energy, Inc. | 265,126 | 7,585,255 | |
15,861,932 | |||
Total United States | 268,362,716 | ||
Total Common Stocks | 324,733,669 | ||
SHORT-TERM INVESTMENT—3.7% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 12,528,695 | 12,528,695 | |
Total Short-Term Investment | 12,528,695 | ||
Total Investments (Cost $355,688,215)(d)—100.0% | 337,262,364 | ||
Liabilities in Excess of Other Assets—(0.0%) | (131,211) | ||
Net Assets—100.0% | $337,131,153 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Non-income producing security. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
2022 Annual Report | 75 |
1 | The Russell 3000® Index measures the performance of the largest 3,000 US companies representing approximately 96% of the investable US equity market, as of the most recent reconstitution |
2 | The Dow Jones Industrial Average is an unmanaged index that tracks 30 blue-chip U.S. Stocks. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
3 | Data was released by the Bureau of Economic Analysis (https://www.bea.gov/news/2022/gross-domestic-product-third-quarter-2022-advance-estimate). |
4 | Sector associated with goods and services that rely upon consumers and are sensitive to changes in the economy. Examples include retailers and media companies. |
5 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
6 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
76 | 2022 Annual Report |
7 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2022 Annual Report | 77 |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (25.40%) | 10.46% | 7.20% |
w/SC2 | (29.71%) | 9.16% | 6.57% | |
Class R3 | w/o SC | (25.57%) | 10.14% | 6.84% |
Institutional Service Class3 | w/o SC | (25.16%) | 10.69% | 7.37% |
Institutional Class3 | w/o SC | (25.17%) | 10.83% | 7.56% |
1 | The Fund changed its investment strategies effective December 1, 2020. Performance information for periods prior to December 1, 2020 does not reflect the current investment strategy. In connection with the change in investment strategy, the Fund changed its name from Aberdeen Focused U.S. Equity Fund to abrdn U.S. Sustainable Leaders Smaller Companies Fund. The Fund changed its investment strategies effective November 15, 2017. Performance information for periods prior to November 15, 2017 does not reflect the current investment strategy. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | Not subject to any sales charges. |
Consumer Price Index (CPI) over a 10-year period ended October 31, 2022. Unlike the Fund, the returns for these unmanaged indexes do
78 | 2022 Annual Report |
Asset Allocation | |
Common Stocks | 98.5% |
Short-Term Investment | 1.1% |
Other Assets in Excess of Liabilities | 0.4% |
100.0% |
Sectors | |
Industrials | 24.4% |
Information Technology | 19.6% |
Financials | 17.4% |
Health Care | 12.5% |
Consumer Staples | 7.4% |
Materials | 5.1% |
Consumer Discretionary | 4.9% |
Utilities | 3.2% |
Energy | 2.6% |
Communication Services | 1.4% |
Short-Term Investment | 1.1% |
Assets in Excess of Other Liabilities | 0.4% |
100.0% |
Top Ten Holdings | |
CyberArk Software Ltd. | 3.5% |
Atkore, Inc. | 3.3% |
Essential Utilities, Inc. | 3.2% |
Amdocs Ltd. | 3.2% |
Darling Ingredients, Inc. | 2.9% |
Graphic Packaging Holding Co. | 2.9% |
Vertiv Holdings Co. | 2.8% |
Tetra Tech, Inc. | 2.8% |
Burlington Stores, Inc. | 2.7% |
Perficient, Inc. | 2.7% |
Countries | |
United States | 82.6% |
Canada | 11.2% |
Israel | 2.6% |
Ireland | 2.1% |
Short-Term Investment | 1.1% |
Assets in Excess of Other Liabilities | 0.4% |
100.0% |
2022 Annual Report | 79 |
Shares | Value | ||
COMMON STOCKS—98.5% | |||
CANADA—11.2% | |||
Consumer Discretionary—2.2% | |||
Aritzia, Inc.(a) | 9,223 | $ 357,723 | |
Consumer Staples—2.7% | |||
Jamieson Wellness, Inc.(b) | 17,310 | 423,491 | |
Financials—4.2% | |||
CI Financial Corp. | 36,886 | 369,307 | |
TMX Group Ltd. | 3,157 | 303,522 | |
672,829 | |||
Industrials—2.1% | |||
ATS Automation Tooling Systems, Inc.(a) | 10,492 | 331,930 | |
Total Canada | 1,785,973 | ||
IRELAND—2.1% | |||
Health Care—2.1% | |||
ICON PLC(a) | 1,681 | 332,569 | |
ISRAEL—2.6% | |||
Information Technology—2.6% | |||
NICE Ltd., ADR(a) | 2,177 | 413,390 | |
UNITED STATES—82.6% | |||
Communication Services—1.4% | |||
Cogent Communications Holdings, Inc. | 4,199 | 220,490 | |
Consumer Discretionary—2.7% | |||
Burlington Stores, Inc.(a) | 3,040 | 434,598 | |
Consumer Staples—4.7% | |||
Darling Ingredients, Inc.(a) | 5,932 | 465,543 | |
SunOpta, Inc.(a) | 25,700 | 288,611 | |
754,154 | |||
Energy—2.6% | |||
New Fortress Energy, Inc. | 7,453 | 410,437 | |
Financials—13.2% | |||
First Interstate BancSystem, Inc., Class A | 8,927 | 407,161 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 8,661 | 235,406 | |
Live Oak Bancshares, Inc. | 5,147 | 167,123 | |
LPL Financial Holdings, Inc. | 1,611 | 411,852 | |
PJT Partners, Inc., Class A | 5,760 | 428,544 | |
Seacoast Banking Corp. of Florida | 8,199 | 253,349 | |
SVB Financial Group(a) | 865 | 199,780 | |
2,103,215 | |||
Health Care—10.4% | |||
CONMED Corp. | 4,777 | 380,870 | |
CryoPort, Inc.(a) | 9,351 | 259,584 | |
Horizon Therapeutics PLC(a) | 3,785 | 235,881 | |
Inmode Ltd.(a) | 10,861 | 372,750 | |
Integer Holdings Corp.(a) | 6,550 | 408,261 | |
1,657,346 | |||
Industrials—22.3% | |||
Advanced Drainage Systems, Inc. | 2,360 | 273,477 | |
Ameresco, Inc., Class A(a) | 4,731 | 286,131 | |
Atkore, Inc.(a) | 5,540 | 527,962 | |
Casella Waste Systems, Inc., Class A(a) | 3,623 | 296,398 | |
Chart Industries, Inc.(a) | 1,824 | 406,533 | |
Helios Technologies, Inc. | 200 | 11,338 | |
JB Hunt Transport Services, Inc. | 1,864 | 318,875 |
Shares | Value | ||
Shyft Group, Inc. | 14,078 | $ 323,512 | |
Tetra Tech, Inc. | 3,107 | 438,957 | |
Trex Co., Inc.(a) | 4,701 | 226,071 | |
Vertiv Holdings Co. | 31,166 | 445,985 | |
3,555,239 | |||
Information Technology—17.0% | |||
Amdocs Ltd. | 5,901 | 509,315 | |
CyberArk Software Ltd.(a) | 3,589 | 563,150 | |
Onto Innovation, Inc.(a) | 5,005 | 334,534 | |
Paylocity Holding Corp.(a) | 1,429 | 331,228 | |
Perficient, Inc.(a) | 6,471 | 433,363 | |
SolarEdge Technologies, Inc.(a) | 1,140 | 262,234 | |
Wolfspeed Inc.(a) | 3,686 | 290,273 | |
2,724,097 | |||
Materials—5.1% | |||
Crown Holdings, Inc. | 5,236 | 359,137 | |
Graphic Packaging Holding Co. | 20,137 | 462,346 | |
821,483 | |||
Utilities—3.2% | |||
Essential Utilities, Inc. | 11,642 | 514,809 | |
Total United States | 13,195,868 | ||
Total Common Stocks | 15,727,800 | ||
SHORT-TERM INVESTMENT—1.1% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 174,697 | 174,697 | |
Total Short-Term Investment | 174,697 | ||
Total Investments (Cost $18,017,811)(d)—99.6% | 15,902,497 | ||
Other Assets in Excess of Liabilities—0.4% | 61,508 | ||
Net Assets—100.0% | $15,964,005 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ADR | American Depositary Receipt |
PLC | Public Limited Company |
80 | 2022 Annual Report |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | |||||
Assets: | |||||||||
Investments, at value | $30,549,977 | $97,274,539 | $24,010,702 | $2,178,931,490 | $111,898,340 | ||||
Short-term investments, at value | 380,882 | 2,895,263 | 610,605 | 71,047,744 | 1,312,096 | ||||
Foreign Currency, at value | 127 | – | 12,598 | 127,137 | 20,797 | ||||
Cash | – | 377,970 | – | – | – | ||||
Receivable for investments sold | – | – | 85,707 | 12,151,023 | 456,599 | ||||
Interest and dividends receivable | 1,247 | 688,757 | 10,637 | 1,702,568 | 96,971 | ||||
Receivable for capital shares issued | 3,642 | 415,981 | 25,820 | 32,227,728 | 101,070 | ||||
Receivable from Adviser | – | 2,009 | 21,678 | 53,196 | 22,020 | ||||
Tax reclaim receivable | – | 254,782 | 11,421 | – | 235,285 | ||||
Prepaid expenses | 30,063 | 17,210 | 30,086 | 135,501 | 29,101 | ||||
Total Assets | 30,965,938 | 101,926,511 | 24,819,254 | 2,296,376,387 | 114,172,279 | ||||
Liabilities: | |||||||||
Due to Custodian | – | 38,816 | – | – | – | ||||
Payable for investments purchased | – | 377,960 | 55,145 | 4,409,768 | – | ||||
Unrealized depreciation on forward foreign currency exchange contracts | – | 37,478 | – | – | – | ||||
Payable for capital shares redeemed | 98,018 | – | 178 | 16,490,846 | 347,683 | ||||
Payable for foreign withholding taxes (See Note 2(i)) | – | 870,819 | – | – | – | ||||
Accrued foreign capital gains tax | – | – | 51,756 | 9,740,505 | 260,356 | ||||
Accrued expenses and other payables: | |||||||||
Administration fees | 2,411 | 5,861 | 1,627 | 157,264 | 7,828 | ||||
Audit fees | 5,110 | 5,110 | 5,110 | 5,110 | 5,111 | ||||
Custodian fees | 25,479 | 16,748 | 10,985 | 1,455,771 | 87,761 | ||||
Distribution fees | 4,795 | 646 | 4,466 | 57,829 | 3,704 | ||||
Fund accounting fees | 1,319 | 2,923 | 654 | 80,407 | 3,562 | ||||
Investment advisory fees | 45,644 | 82,355 | 18,308 | 1,769,219 | 78,283 | ||||
Legal fees | 195 | 615 | 181 | 13,071 | 756 | ||||
Printing fees | 2,915 | – | 2,708 | 129,006 | 8,552 | ||||
Sub-transfer agent and administrative services fees | 4,793 | 6,492 | 1,853 | 501,063 | 9,130 | ||||
Transfer agent fees | 2,265 | 3,160 | 3,241 | 25,631 | 7,622 | ||||
Other accrued expenses | 11,800 | 21,100 | 16,516 | 26,996 | 19,476 | ||||
Total liabilities | 204,744 | 1,470,083 | 172,728 | 34,862,486 | 839,824 | ||||
Net assets | $30,761,194 | $100,456,428 | $24,646,526 | $2,261,513,901 | $113,332,455 | ||||
Cost: | |||||||||
Investments | 48,353,949 | 88,287,608 | 26,787,260 | 2,520,353,937 | 158,840,927 | ||||
Short-Term Investments | 380,882 | 2,895,263 | 610,605 | 71,047,744 | 1,312,096 | ||||
Foreign currency | 127 | – | 12,771 | 127,226 | 20,985 | ||||
Represented by: | |||||||||
Paid in capital in excess of par value | $58,899,048 | $93,379,925 | $25,420,438 | $2,682,891,702 | $170,632,004 | ||||
Distributable earnings (accumulated loss) | (28,137,854) | 7,076,503 | (773,912) | (421,377,801) | (57,299,549) | ||||
Net Assets | $30,761,194 | $100,456,428 | $24,646,526 | $2,261,513,901 | $113,332,455 | ||||
Net Assets: | |||||||||
Class A | $9,608,633 | $4,094,138 | $19,947,475 | $63,231,928 | $11,344,589 | ||||
Class C | 1,533,150 | – | 134,919 | 4,161,805 | 205,681 | ||||
Class R | 2,355,846 | – | 588,198 | 92,427,863 | 2,365,397 | ||||
Institutional Service Class | 348,577 | – | 235,970 | 494,873,142 | 52,901,212 | ||||
Institutional Class | 16,914,988 | 96,362,290 | 3,739,964 | 1,606,819,163 | 46,515,576 | ||||
Total | $30,761,194 | $100,456,428 | $24,646,526 | $2,261,513,901 | $113,332,455 Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
2022 Annual Report | 81 |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||||||
Class A Shares | 422,583 | 1,092,756 | 1,610,860 | 5,603,104 | 1,228,006 | ||||
Class C Shares (a) | 72,147 | – | 12,007 | 375,406 | 24,483 | ||||
Class R Shares | 106,953 | – | 50,752 | 8,316,922 | 274,384 | ||||
Institutional Service Class Shares | 15,182 | – | 18,644 | 43,637,979 | 5,551,458 | ||||
Institutional Class Shares | 732,237 | 25,708,499 | 299,116 | 140,984,187 | 4,848,134 | ||||
Total Shares Outstanding per Class | 1,349,102 | 26,801,255 | 1,991,379 | 198,917,598 | 11,926,465 | ||||
Net Asset Value and Redemption Price Per Share (Net assets by class divided by shares outstanding by class, respectively): | |||||||||
Class A Shares | $22.74 | $3.75 | $12.38 | $11.29(b) | $9.24 | ||||
Class C Shares (a) | 21.25 | – | 11.24 | 11.09 | 8.40 | ||||
Class R Shares | 22.03 | – | 11.59 | 11.11 | 8.62 | ||||
Institutional Service Class Shares | 22.96 | – | 12.66 | 11.34 | 9.53 | ||||
Institutional Class Shares | 23.10 | 3.75 | 12.50 | 11.40 | 9.59 | ||||
Maximum Offering Price Per Share (100%/(100% - maximum sales charge) of net asset value adjusted to the nearest cent): | |||||||||
Class A Shares | $24.13 | $3.98 | $13.14 | $11.98 | $9.80 | ||||
Maximum Sales Charge: | |||||||||
Class A Shares | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year due to contingent deferred sales charge. |
(b) | The NAV shown above differs from the traded NAV on October 31, 2022 due to financial statement rounding and/or financial statement adjustments. |
82 | 2022 Annual Report |
abrdn Global Equity Impact Fund | abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | abrdn Realty Income & Growth Fund | |||||
Assets: | |||||||||
Investments, at value | $45,520,576 | $46,262,067 | $176,258,354 | $79,386,654 | $40,460,530 | ||||
Short-term investments, at value | 161,466 | 314,397 | 1,947,367 | 2,185,046 | 1,696,494 | ||||
Foreign Currency, at value | 806,800 | 591 | 940,547 | – | – | ||||
Cash | – | 2,330 | – | – | – | ||||
Receivable for investments sold | – | 779,188 | – | – | – | ||||
Interest and dividends receivable | 1,236 | 51,588 | 117,864 | 58,474 | 47,736 | ||||
Receivable for capital shares issued | 2,338 | – | 28,004 | 235 | 69 | ||||
Receivable from Adviser | – | 9,342 | 67,572 | – | 16,106 | ||||
Tax reclaim receivable | 83,954 | 22,188 | 50,692 | 157,149 | – | ||||
Receivable for Article 63 EU Tax Reclaims (See Note 2(i)) | 2,260,064 | – | – | 3,929,369 | – | ||||
Prepaid expenses | 513 | 13,000 | 34,446 | 928 | 12,590 | ||||
Total Assets | 48,836,947 | 47,454,691 | 179,444,846 | 85,717,855 | 42,233,525 | ||||
Liabilities: | |||||||||
Due to Custodian | – | – | – | 14,118 | – | ||||
Payable for investments purchased | – | 280,558 | 495,735 | – | – | ||||
Payable for capital shares redeemed | 15,217 | 94,377 | 118,878 | 172,554 | 164,316 | ||||
Payable to IRS on behalf of shareholders related to Article 63 EU Tax Reclaims (see Note 2(i)) | 2,297,097 | – | – | 3,229,131 | – | ||||
Accrued foreign capital gains tax | – | – | 50,363 | 49,458 | – | ||||
Accrued expenses and other payables: | |||||||||
Administration fees | 2,944 | 2,729 | 11,897 | 5,328 | 2,044 | ||||
Audit fees | 5,110 | 5,110 | 5,110 | 5,111 | 6,610 | ||||
Custodian fees | 47,447 | 14,911 | 74,381 | 73,307 | 5,603 | ||||
Distribution fees | 5,342 | 1,302 | 13,201 | 13,826 | 1,079 | ||||
Fund accounting fees | 1,327 | 1,402 | 6,207 | 2,420 | 1,286 | ||||
Interest expense on line of credit | – | – | – | – | 11,067 | ||||
Investment advisory fees | 62,268 | 32,822 | 120,023 | 87,828 | 34,306 | ||||
Legal fees | 263 | 290 | 850 | 467 | 251 | ||||
Printing fees | – | – | 17,122 | – | – | ||||
Sub-transfer agent and administrative services fees | 8,337 | 4,092 | 21,389 | 22,889 | 3,051 | ||||
Transfer agent fees | 2,667 | 1,910 | 7,654 | 3,326 | 1,765 | ||||
Other accrued expenses | 18,632 | 20,292 | 18,868 | 24,607 | 12,820 | ||||
Total liabilities | 2,466,651 | 459,795 | 961,678 | 3,704,370 | 244,198 | ||||
Net assets | $46,370,296 | $46,994,896 | $178,483,168 | $82,013,485 | $41,989,327 | ||||
Cost: | |||||||||
Investments | 45,439,404 | 42,914,884 | 220,254,654 | 105,428,230 | 33,978,725 | ||||
Short-Term Investments | 161,466 | 314,397 | 1,947,367 | 2,185,046 | 1,696,494 | ||||
Foreign currency | 830,700 | 640 | 978,908 | – | – | ||||
Represented by: | |||||||||
Par value | $3,542 | $– | $– | $3,679 | $– | ||||
Paid in capital in excess of par value | 56,775,129 | 42,850,926 | 243,924,586 | 504,760,324 | 33,154,497 | ||||
Distributable earnings (accumulated loss) | (10,408,375) | 4,143,970 | (65,441,418) | (422,750,518) | 8,834,830 | ||||
Net Assets | $46,370,296 | $46,994,896 | $178,483,168 | $82,013,485 | $41,989,327 | ||||
Net Assets: | |||||||||
Class A | $26,986,064 | $11,349,827 | $58,261,852 | $68,067,211 | $397,465 | ||||
Class C | – | – | 348,530 | – | – | ||||
Class R | – | – | 1,912,641 | – | – | ||||
Institutional Class | 19,384,232 | 35,645,069 | 117,960,145 | 13,946,274 | 41,591,862 | ||||
Total | $46,370,296 | $46,994,896 | $178,483,168 | $82,013,485 | $41,989,327 Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
2022 Annual Report | 83 |
abrdn Global Equity Impact Fund | abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | abrdn Realty Income & Growth Fund | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||||||
Class A Shares | 2,064,634 | 550,410 | 2,450,075 | 3,069,782 | 36,667 | ||||
Class C Shares | – | – | 16,647 | – | – | ||||
Class R Shares | – | – | 86,703 | – | – | ||||
Institutional Class Shares | 1,477,118 | 1,725,026 | 4,891,474 | 609,474 | 3,820,160 | ||||
Total Shares Outstanding per Class | 3,541,752 | 2,275,436 | 7,444,899 | 3,679,256 | 3,856,827 | ||||
Net Asset Value and Redemption Price Per Share (Net assets by class divided by shares outstanding by class, respectively): | |||||||||
Class A Shares | $13.07(a) | $20.62 | $23.78 | $22.17(a) | $10.84 | ||||
Class C Shares | – | – | 20.94 | – | – | ||||
Class R Shares | – | – | 22.06 | – | – | ||||
Institutional Class Shares | 13.12(a) | 20.66(a) | 24.12 | 22.88(a) | 10.89 | ||||
Maximum Offering Price Per Share (100%/(100% - maximum sales charge) of net asset value adjusted to the nearest cent): | |||||||||
Class A Shares | $13.87 | $21.88 | $25.23 | $23.52 | $11.50 | ||||
Maximum Sales Charge: | |||||||||
Class A Shares | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% |
(a) | The NAV shown above differs from the traded NAV on October 31, 2022 due to financial statement rounding and/or financial statement adjustments. |
84 | 2022 Annual Report |
abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | abrdn U.S. Sustainable Leaders Smaller Companies Fund | |||
Assets: | |||||
Investments, at value | $720,471,609 | $324,733,669 | $15,727,800 | ||
Short-term investments, at value | 6,336,367 | 12,528,695 | 174,697 | ||
Foreign Currency, at value | – | – | 4,143 | ||
Receivable for investments sold | 2,815,773 | – | 62,918 | ||
Interest and dividends receivable | 69,137 | 184,801 | 835 | ||
Receivable for capital shares issued | 313,195 | 5,245 | 142 | ||
Receivable from Adviser | 61,804 | 12,132 | 31,018 | ||
Prepaid expenses | 34,697 | 40,074 | 23,056 | ||
Total Assets | 730,102,582 | 337,504,616 | 16,024,609 | ||
Liabilities: | |||||
Payable for investments purchased | 479,330 | – | – | ||
Payable for capital shares redeemed | 970,627 | 16,583 | 18,779 | ||
Accrued expenses and other payables: | |||||
Administration fees | 48,072 | 22,189 | 1,071 | ||
Audit fees | 5,611 | 5,111 | 5,111 | ||
Custodian fees | 24,173 | 11,724 | 7,351 | ||
Distribution fees | 43,886 | 45,897 | 2,633 | ||
Fund accounting fees | 21,798 | 10,082 | 472 | ||
Investment advisory fees | 493,459 | 208,021 | 10,042 | ||
Legal fees | 4,183 | 1,964 | 262 | ||
Printing fees | 48,448 | 8,487 | 2,209 | ||
Sub-transfer agent and administrative services fees | 86,181 | 16,937 | 1,845 | ||
Transfer agent fees | 15,434 | 13,519 | 1,844 | ||
Other accrued expenses | 17,448 | 12,949 | 8,985 | ||
Total liabilities | 2,258,650 | 373,463 | 60,604 | ||
Net assets | $727,843,932 | $337,131,153 | $15,964,005 | ||
Cost: | |||||
Investments | 796,292,293 | 343,159,520 | 17,843,114 | ||
Short-Term Investments | 6,336,367 | 12,528,695 | 174,697 | ||
Foreign currency | – | – | 4,105 | ||
Represented by: | |||||
Paid in capital in excess of par value | $778,588,919 | $354,238,002 | $18,502,365 | ||
Distributable earnings (accumulated loss) | (50,744,987) | (17,106,849) | (2,538,360) | ||
Net Assets | $727,843,932 | $337,131,153 | $15,964,005 | ||
Net Assets: | |||||
Class A | $108,078,414 | $222,190,103 | $8,219,800 | ||
Class C | 25,067,980 | 228,712 | – | ||
Class R | 3,286,316 | – | 2,285,720 | ||
Institutional Service Class | 31,893,278 | 106,067,886 | 276,324 | ||
Institutional Class | 559,517,944 | 8,644,452 | 5,182,161 | ||
Total | $727,843,932 | $337,131,153 | $15,964,005 | ||
Shares Outstanding (unlimited number of shares authorized): | |||||
Class A Shares | 3,580,201 | 23,680,169 | 1,306,490 | ||
Class C Shares (a) | 1,109,884 | 33,858 | – | ||
Class R Shares | 126,808 | – | 424,938 | ||
Institutional Service Class Shares | 955,430 | 10,041,622 | 41,634 | ||
Institutional Class Shares | 16,703,559 | 811,627 | 743,101 | ||
Total Shares Outstanding per Class | 22,475,882 | 34,567,276 | 2,516,163 Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
2022 Annual Report | 85 |
abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | abrdn U.S. Sustainable Leaders Smaller Companies Fund | |
Net Asset Value and Redemption Price Per Share (Net assets by class divided by shares outstanding by class, respectively): | |||
Class A Shares | $30.19 | $9.38 | $6.29 |
Class C Shares (a) | 22.59 | 6.76 | – |
Class R Shares | 25.92 | – | 5.38 |
Institutional Service Class Shares | 33.38 | 10.56 | 6.64 |
Institutional Class Shares | 33.50 | 10.65 | 6.97 |
Maximum Offering Price Per Share (100%/(100% - maximum sales charge) of net asset value adjusted to the nearest cent): | |||
Class A Shares | $32.03 | $9.95 | $6.67 |
Maximum Sales Charge: | |||
Class A Shares | 5.75% | 5.75% | 5.75% |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year due to contingent deferred sales charge. |
86 | 2022 Annual Report |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | |||||
Investment Income: | |||||||||
Dividend income | $807,316 | $8,728,829 | $586,288 | $77,895,503 | $3,111,587 | ||||
Interest income | 11,022 | 22,076 | 4,651 | 385,834 | 43,172 | ||||
Securities lending income, net | — | — | — | 96,683 | 1,750 | ||||
Foreign tax withholding | (67,026) | (1,746,464)(a) | (63,408) | (8,484,534) | (397,849) | ||||
Total Income | 751,312 | 7,004,441 | 527,531 | 69,893,486 | 2,758,660 | ||||
Expenses | |||||||||
Investment advisory fees | 514,523 | 1,155,648 | 236,354 | 31,331,992 | 1,214,612 | ||||
Trustee fees | 5,202 | 10,875 | 2,442 | 304,444 | 13,761 | ||||
Administration fees | 48,426 | 92,452 | 21,009 | 2,785,066 | 121,461 | ||||
Legal fees | 7,430 | 59,701 | 3,248 | 435,025 | 19,090 | ||||
Audit fees | 36,720 | 36,411 | 36,720 | 39,001 | 36,720 | ||||
Printing fees | 2,014 | 7,869 | 18,488 | — | 13,515 | ||||
Custodian fees | 114,523 | 5,022 | 15,504 | 3,177,698 | 237,629 | ||||
Transfer agent fees | 28,867 | 40,312 | 45,040 | 454,999 | 111,591 | ||||
Distribution fees Class A | 36,110 | 11,614 | 58,507 | 213,480 | 41,011 | ||||
Distribution fees Class C | 26,457 | — | 1,617 | 72,363 | 5,823 | ||||
Distribution fees Class R | 17,397 | — | 3,697 | 562,708 | 18,599 | ||||
Sub-transfer agent and administrative service fees Institutional Class | 23,667 | 73,092 | 875 | 2,517,328 | 33,400 | ||||
Sub-transfer agent and administrative service fees Class A | 12,961 | 3,798 | 21,234 | 211,678 | 21,798 | ||||
Sub-transfer agent and administrative service fees Class C | 1,703 | — | 355 | 5,605 | 616 | ||||
Sub-transfer agent and administrative service fees Class R | 4,110 | — | 1,777 | 169,987 | 5,932 | ||||
Sub-transfer agent and administrative service fees Institutional Service Class | 743 | — | 270 | 753,761 | 44,716 | ||||
Fund accounting fees | 2,421 | 4,623 | 1,051 | 139,253 | 6,073 | ||||
Registration and filing fees | 77,510 | 33,388 | 65,433 | 224,891 | 68,877 | ||||
Other | 36,341 | 25,863 | 35,136 | 489,724 | 55,523 | ||||
Total expenses before reimbursed/waived expenses | 997,125 | 1,560,668 | 568,757 | 43,889,003 | 2,070,747 | ||||
Interest expense (Note 9) | 365 | — | 9 | 33,285 | 1,496 | ||||
Total operating expenses before reimbursed/waived expenses | 997,490 | 1,560,668 | 568,766 | 43,922,288 | 2,072,243 | ||||
Expenses reimbursed | (299,918) | (104,327) | (183,875) | (3,610,371) | (262,777) | ||||
Net expenses | 697,572 | 1,456,341 | 384,891 | 40,311,917 | 1,809,466 | ||||
Net Investment Income | 53,740 | 5,548,100 | 142,640 | 29,581,569 | 949,194 | ||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||
Realized gain/(loss) on investment transactions | (10,354,842) | (1,360,660) | 6,067,486 | (72,827,999) | (10,693,231) | ||||
Realized gain/(loss) on forward foreign currency exchange contracts | — | 562,959 | — | — | — | ||||
Realized gain/(loss) on foreign currency transactions | (36,645) | (93,527) | (38,696) | (2,744,511) | (75,539) | ||||
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | (10,391,487) | (891,228) | 6,028,790 | (75,572,510) | (10,768,770) | ||||
Net change in unrealized appreciation/(depreciation) on investment transactions (including $0, $0, $(41,714), $14,895,753 and $216,856 change in deferred capital gains tax, respectively) | (17,964,810) | (24,639,921) | (13,293,803) | (1,564,996,917) | (60,588,491) | ||||
Net change in unrealized appreciation/(depreciation) on forward foreign currency exchange contracts | — | (35,464) | — | — | — Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
2022 Annual Report | 87 |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | |||||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | $(1,077) | $84,752 | $(2,098) | $(55,064) | $(32,041) | ||||
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (17,965,887) | (24,590,633) | (13,295,901) | (1,565,051,981) | (60,620,532) | ||||
Net realized/unrealized gain/(loss) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (28,357,374) | (25,481,861) | (7,267,111) | (1,640,624,491) | (71,389,302) | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $(28,303,634) | $(19,933,761) | $(7,124,471) | $(1,611,042,922) | $(70,440,108) |
(a) | Foreign tax withholding includes $987,002 related to withholding tax refunds that the Fund has previously received and recorded which the Fund may be required to return. See Note 2i of the Notes to Financial Statements. |
88 | 2022 Annual Report |
abrdn Global Equity Impact Fund | abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | abrdn Realty Income & Growth Fund | |||||
Investment Income: | |||||||||
Dividend income | $933,421 | $1,812,370 | $6,554,660 | $1,618,956 | $1,285,071 | ||||
Interest income | 7,590 | 9,300 | 33,209 | 17,887 | 9,061 | ||||
Foreign tax withholding | 1,147,745(a) | (172,834) | (440,958) | 929,704(b) | — | ||||
Total Income | 2,088,756 | 1,648,836 | 6,146,911 | 2,566,547 | 1,294,132 | ||||
Expenses | |||||||||
Investment advisory fees | 425,395 | 461,041 | 2,036,968 | 795,934 | 512,380 | ||||
Trustee fees | 16,123 | 5,095 | 23,549 | 30,462 | 4,780 | ||||
Administration fees | 39,695 | 43,392 | 206,610 | 73,790 | 40,990 | ||||
Legal fees | 2,507 | 6,678 | 31,148 | 3,109 | 6,338 | ||||
Audit fees | 37,491 | 40,341 | 39,000 | 37,491 | 38,991 | ||||
Printing fees | 34,528 | 6,898 | 20,500 | 59,722 | 5,644 | ||||
Custodian fees | 62,176 | 26,727 | 151,123 | 99,772 | 5,234 | ||||
Transfer agent fees | 36,181 | 25,459 | 93,122 | 49,065 | 23,715 | ||||
Distribution fees Class A | 81,136 | 32,258 | 204,511 | 218,730 | 1,833 | ||||
Distribution fees Class C | — | — | 4,419 | — | — | ||||
Distribution fees Class R | — | — | 10,403 | — | — | ||||
Sub-transfer agent and administrative service fees Institutional Class | 24,158 | 33,101 | 192,105 | 11,703 | 34,940 | ||||
Sub-transfer agent and administrative service fees Class A | 42,258 | 9,892 | 86,585 | 124,917 | 571 | ||||
Sub-transfer agent and administrative service fees Class C | — | — | 709 | — | — | ||||
Sub-transfer agent and administrative service fees Class R | — | — | 3,125 | — | — | ||||
Fund accounting fees | 1,981 | 2,170 | 10,330 | 3,683 | 2,049 | ||||
Registration and filing fees | 30,492 | 31,614 | 78,610 | 30,290 | 30,573 | ||||
Other | 67,596 | 26,071 | 63,002 | 82,408 | 20,878 | ||||
Total expenses before reimbursed/waived expenses | 901,717 | 750,737 | 3,255,819 | 1,621,076 | 728,916 | ||||
Interest expense (Note 9) | 30 | 51 | 3,467 | 33 | 942 | ||||
Total operating expenses before reimbursed/waived expenses | 901,747 | 750,788 | 3,259,286 | 1,621,109 | 729,858 | ||||
Expenses reimbursed | (300,067) | (181,503) | (386,527) | (426,614) | (214,703) | ||||
Expenses waived by investment adviser | (333) | — | — | (651) | — | ||||
Net expenses | 601,347 | 569,285 | 2,872,759 | 1,193,844 | 515,155 | ||||
Net Investment Income | 1,487,409 | 1,079,551 | 3,274,152 | 1,372,703 | 778,977 | ||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||
Realized gain/(loss) on investment transactions | 4,491,280 | 1,625,115 | (24,387,829) | (8,455,732) | 2,985,249 | ||||
Realized gain/(loss) on forward foreign currency exchange contracts | — | 16,588 | — | — | — | ||||
Realized gain/(loss) on foreign currency transactions | (60,894) | (7,855) | (94,477) | (102,404) | — | ||||
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | 4,430,386 | 1,633,848 | (24,482,306) | (8,558,136) | 2,985,249 | ||||
Net change in unrealized appreciation/(depreciation) on investment transactions (including $21,579, $0, $74,582, $244,270 and $0 change in deferred capital gains tax, respectively) | (26,759,317) | (8,689,427) | (117,975,388) | (43,471,403) | (14,020,801) | ||||
Net change in unrealized appreciation/(depreciation) on forward foreign currency exchange contracts | — | 1,279 | — | — | — Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
2022 Annual Report | 89 |
abrdn Global Equity Impact Fund | abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | abrdn Realty Income & Growth Fund | |||||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | $(36,126) | $(1,519) | $(45,057) | $(25,377) | $— | ||||
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (26,795,443) | (8,689,667) | (118,020,445) | (43,496,780) | (14,020,801) | ||||
Net realized/unrealized gain/(loss) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (22,365,057) | (7,055,819) | (142,502,751) | (52,054,916) | (11,035,552) | ||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $(20,877,648) | $(5,976,268) | $(139,228,599) | $(50,682,213) | $(10,256,575) |
(a) | Foreign tax withholding includes $4,331,067 of refunds and interest received or recognized during the period, net of $3,112,773 related to the amounts due to IRS on behalf of shareholders related to Article 63 EU Tax Reclaims. See Note 2i of the Notes to Financial Statements. |
(b) | Foreign tax withholding includes $6,254,755 of refunds and interest received or recognized during the period, net of $5,146,588 related to the amounts due to IRS on behalf of shareholders related to Article 63 EU Tax Reclaims. See Note 2i of the Notes to Financial Statements. |
90 | 2022 Annual Report |
abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | abrdn U.S. Sustainable Leaders Smaller Companies Fund | |||
Investment Income: | |||||
Dividend income | $5,673,080 | $3,198,952 | $120,886 | ||
Interest income | 106,005 | 87,206 | 4,152 | ||
Foreign tax withholding | (181,293) | (116,829) | (5,338) | ||
Total Income | 5,597,792 | 3,169,329 | 119,700 | ||
Expenses | |||||
Investment advisory fees | 7,495,875 | 3,101,261 | 139,684 | ||
Trustee fees | 81,776 | 37,305 | 1,735 | ||
Administration fees | 734,587 | 330,975 | 14,900 | ||
Legal fees | 112,338 | 50,803 | 45,891 | ||
Audit fees | 37,221 | 35,581 | 40,131 | ||
Printing fees | — | 22,156 | 9,475 | ||
Custodian fees | 36,162 | 20,046 | 8,790 | ||
Transfer agent fees | 180,182 | 183,339 | 24,191 | ||
Distribution fees Class A | 329,357 | 684,458 | 23,949 | ||
Distribution fees Class C | 326,054 | 2,725 | 4,489 | ||
Distribution fees Class R | 21,294 | — | 13,138 | ||
Sub-transfer agent and administrative service fees Institutional Class | 679,339 | 6,832 | 7,745 | ||
Sub-transfer agent and administrative service fees Class A | 162,749 | 112,262 | 8,151 | ||
Sub-transfer agent and administrative service fees Class C | 30,101 | 356 | 353 | ||
Sub-transfer agent and administrative service fees Class R | 7,378 | — | 4,159 | ||
Sub-transfer agent and administrative service fees Institutional Service Class | 46,271 | 83,732 | 525 | ||
Fund accounting fees | 36,729 | 16,549 | 745 | ||
Registration and filing fees | 99,609 | 58,612 | 64,876 | ||
Other | 112,027 | 69,237 | 22,141 | ||
Total expenses before reimbursed/waived expenses | 10,529,049 | 4,816,229 | 435,068 | ||
Interest expense (Note 9) | 3,196 | 408 | — | ||
Total operating expenses before reimbursed/waived expenses | 10,532,245 | 4,816,637 | 435,068 | ||
Expenses reimbursed | (573,835) | (209,581) | (213,043) | ||
Net expenses | 9,958,410 | 4,607,056 | 222,025 | ||
Net Investment Income | (4,360,618) | (1,437,727) | (102,325) | ||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||
Realized gain/(loss) on investment transactions | 37,443,580 | 2,804,615 | (320,316) | ||
Realized gain/(loss) on foreign currency transactions | 53,083 | 13,132 | 1,766 | ||
Net realized gain/(loss) from investments and foreign currency transactions | 37,496,663 | 2,817,747 | (318,550) | ||
Net change in unrealized appreciation/(depreciation) on investment transactions | (303,779,602) | (135,458,814) | (5,446,171) | ||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | — | — | 38 | ||
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | (303,779,602) | (135,458,814) | (5,446,133) | ||
Net realized/unrealized gain/(loss) from investments and translation of assets and liabilities denominated in foreign currencies | (266,282,939) | (132,641,067) | (5,764,683) | ||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $(270,643,557) | $(134,078,794) | $(5,867,008) |
2022 Annual Report | 91 |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income | $53,740 | $54,912 | $5,548,100 | $6,597,742 | $142,640 | $(103,384) | |||||
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | (10,391,487) | 2,204,301 | (891,228) | 5,325,250 | 6,028,790 | 4,488,279 | |||||
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (17,965,887) | (3,858,510) | (24,590,633) | 24,012,917 | (13,295,901) | 4,728,633 | |||||
Changes in net assets resulting from operations | (28,303,634) | (1,599,297) | (19,933,761) | 35,935,909 | (7,124,471) | 9,113,528 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (454,659) | (187,758) | (250,310) | (246,233) | (2,940,025) | — | |||||
Class C | (99,787) | (30,331) | — | — | (22,504) | — | |||||
Class R | (119,125) | (60,627) | — | — | (100,452) | — | |||||
Institutional Service Class | (23,223) | (10,077) | — | — | (35,904) | — | |||||
Institutional Class | (1,556,884) | (227,834) | (6,261,044) | (6,307,092) | (161,867) | — | |||||
Tax return of capital | |||||||||||
Class A | — | — | (6,551) | — | — | — | |||||
Institutional Class | — | — | (156,417) | — | — | — | |||||
Change in net assets from shareholder distributions | (2,253,678) | (516,627) | (6,674,322) | (6,553,325) | (3,260,752) | — | |||||
Change in net assets from capital transactions | (26,754,952) | 69,942,065 | (1,087,516) | (5,465,206) | 4,193,751 | (3,492,261) | |||||
Change in net assets | (57,312,264) | 67,826,141 | (27,695,599) | 23,917,378 | (6,191,472) | 5,621,267 | |||||
Net Assets: | |||||||||||
Beginning of year | 88,073,458 | 20,247,317 | 128,152,027 | 104,234,649 | 30,837,998 | 25,216,731 | |||||
End of year | $30,761,194 | $88,073,458 | $100,456,428 | $128,152,027 | $24,646,526 | $30,837,998 |
92 | 2022 Annual Report |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $3,046,824 | $13,943,316 | $522,813 | $533,059 | $3,170,285 | $420,868 | |||||
Dividends reinvested | 376,768 | 148,240 | 184,142 | 173,000 | 2,746,115 | — | |||||
Cost of shares redeemed | (5,176,897) | (7,236,721) | (514,849) | (731,898) | (4,455,540) | (3,223,417) | |||||
Total Class A | (1,753,305) | 6,854,835 | 192,106 | (25,839) | 1,460,860 | (2,802,549) | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | 317,081 | 4,436,043 | — | — | 1,500 | 200 | |||||
Dividends reinvested | 99,579 | 29,772 | — | — | 22,485 | — | |||||
Cost of shares redeemed | (1,236,375) | (1,132,154) | — | — | (15,904) | (76,825) | |||||
Total Class C | (819,715) | 3,333,661 | — | — | 8,081 | (76,625) | |||||
Class R Shares | |||||||||||
Proceeds from shares issued | 921,124 | 4,143,882 | — | — | 138,335 | 178,224 | |||||
Dividends reinvested | 119,125 | 60,456 | — | — | 98,734 | — | |||||
Cost of shares redeemed | (1,541,018) | (3,125,168) | — | — | (237,380) | (466,581) | |||||
Total Class R | (500,769) | 1,079,170 | — | — | (311) | (288,357) | |||||
Institutional Service Class Shares | |||||||||||
Proceeds from shares issued | 28,398 | 343,114 | — | — | 2 | 30 | |||||
Dividends reinvested | 23,119 | 10,017 | — | — | 35,904 | — | |||||
Cost of shares redeemed | (338,939) | (93,518) | — | — | (34,006) | (1,527) | |||||
Total Institutional Service Class | (287,422) | 259,613 | — | — | 1,900 | (1,497) | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 22,647,772 | 91,638,132 | 6,238,774 | 5,950,144 | 3,049,569 | 382,098 | |||||
Dividends reinvested | 1,523,305 | 226,673 | 5,461,393 | 5,323,147 | 154,472 | — | |||||
Cost of shares redeemed | (47,564,818) | (33,450,019) | (12,979,789) | (16,712,658) | (480,820) | (705,331) | |||||
Total Institutional Class | (23,393,741) | 58,414,786 | (1,279,622) | (5,439,367) | 2,723,221 | (323,233) | |||||
Change in net assets from capital transactions: | $(26,754,952) | $69,942,065 | $(1,087,516) | $(5,465,206) | $4,193,751 | $(3,492,261) |
2022 Annual Report | 93 |
abrdn China A Share Equity Fund | abrdn Dynamic Dividend Fund | abrdn Emerging Markets ex-China Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 96,678 | 355,589 | 120,270 | 119,625 | 242,682 | 25,756 | |||||
Reinvested | 10,460 | 3,997 | 43,405 | 37,880 | 167,039 | – | |||||
Redeemed | (173,865) | (191,423) | (123,273) | (159,465) | (329,568) | (194,582) | |||||
Total Class A Shares | (66,727) | 168,163 | 40,402 | (1,960) | 80,153 | (168,826) | |||||
Class C Shares | |||||||||||
Issued | 10,299 | 119,782 | – | – | 107 | 13 | |||||
Reinvested | 2,941 | 847 | – | – | 1,499 | – | |||||
Redeemed | (47,373) | (32,587) | – | – | (1,224) | (5,132) | |||||
Total Class C Shares | (34,133) | 88,042 | – | – | 382 | (5,119) | |||||
Class R Shares | |||||||||||
Issued | 31,381 | 111,825 | – | – | 10,404 | 11,483 | |||||
Reinvested | 3,406 | 1,672 | – | – | 6,395 | – | |||||
Redeemed | (51,990) | (86,546) | – | – | (18,578) | (30,516) | |||||
Total Class R Shares | (17,203) | 26,951 | – | – | (1,779) | (19,033) | |||||
Institutional Service Class Shares | |||||||||||
Issued | 801 | 8,659 | – | – | 1 | 1 | |||||
Reinvested | 637 | 268 | – | – | 2,141 | – | |||||
Redeemed | (11,455) | (2,452) | – | – | (2,028) | (94) | |||||
Total Institutional Service Class Shares | (10,017) | 6,475 | – | – | 114 | (93) | |||||
Institutional Class Shares | |||||||||||
Issued | 692,817 | 2,343,579 | 1,464,716 | 1,290,323 | 237,754 | 23,033 | |||||
Reinvested | 41,746 | 6,051 | 1,284,612 | 1,164,900 | 9,334 | – | |||||
Redeemed | (1,579,023) | (916,518) | (3,022,528) | (3,696,031) | (34,618) | (42,843) | |||||
Total Institutional Class Shares | (844,460) | 1,433,112 | (273,200) | (1,240,808) | 212,470 | (19,810) | |||||
Total change in shares: | (972,540) | 1,722,743 | (232,798) | (1,242,768) | 291,340 | (212,881) |
94 | 2022 Annual Report |
abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | abrdn Global Equity Impact Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income | $29,581,569 | $33,838,906 | $949,194 | $844,212 | $1,487,409 | $68,336 | |||||
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | (75,572,510) | 544,170,322 | (10,768,770) | 72,178,595 | 4,430,386 | 6,480,101 | |||||
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | (1,565,051,981) | 252,663,788 | (60,620,532) | (33,797,673) | (26,795,443) | 17,354,940 | |||||
Changes in net assets resulting from operations | (1,611,042,922) | 830,673,016 | (70,440,108) | 39,225,134 | (20,877,648) | 23,903,377 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (10,450,111) | (840,787) | (4,773,694) | (3,298) | (10,881) | (139,504) | |||||
Class C | (982,396) | (95,512) | (230,068) | — | — | — | |||||
Class R | (13,100,936) | (929,422) | (1,308,584) | — | — | — | |||||
Institutional Service Class | (43,720,503) | (3,669,233) | (18,601,335) | (243,818) | — | — | |||||
Institutional Class | (397,648,559) | (36,648,250) | (15,010,365) | (207,630) | (22,288) | (214,903) | |||||
Change in net assets from shareholder distributions | (465,902,505) | (42,183,204) | (39,924,046) | (454,746) | (33,169) | (354,407) | |||||
Change in net assets from capital transactions | (582,993,591) | 123,609,123 | 7,296,976 | (39,743,964) | (8,089,439) | (8,197,775) | |||||
Change in net assets | (2,659,939,018) | 912,098,935 | (103,067,178) | (973,576) | (29,000,256) | 15,351,195 | |||||
Net Assets: | |||||||||||
Beginning of year | 4,921,452,919 | 4,009,353,984 | 216,399,633 | 217,373,209 | 75,370,552 | 60,019,357 | |||||
End of year | $2,261,513,901 | $4,921,452,919 | $113,332,455 | $216,399,633 | $46,370,296 | $75,370,552 |
2022 Annual Report | 95 |
abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | abrdn Global Equity Impact Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $23,429,077 | $44,072,988 | $1,513,131 | $3,287,050 | $1,325,451 | $3,242,022 | |||||
Dividends reinvested | 7,804,763 | 582,889 | 4,278,213 | 2,916 | 10,348 | 136,271 | |||||
Cost of shares redeemed | (33,776,964) | (57,713,958) | (5,940,123) | (5,020,426) | (5,339,224) | (5,364,495) | |||||
Total Class A | (2,543,124) | (13,058,081) | (148,779) | (1,730,460) | (4,003,425) | (1,986,202) | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | 603,272 | 1,441,890 | — | 79,312 | — | — | |||||
Dividends reinvested | 783,716 | 77,269 | 230,068 | — | — | — | |||||
Cost of shares redeemed | (3,495,596) | (4,997,733) | (671,768) | (1,871,902) | — | — | |||||
Total Class C | (2,108,608) | (3,478,574) | (441,700) | (1,792,590) | — | — | |||||
Class R Shares | |||||||||||
Proceeds from shares issued | 16,410,398 | 11,577,172 | 537,416 | 3,183,934 | — | — | |||||
Dividends reinvested | 13,078,200 | 926,091 | 1,306,259 | — | — | — | |||||
Cost of shares redeemed | (4,699,741) | (15,143,748) | (2,480,297) | (854,393) | — | — | |||||
Total Class R | 24,788,857 | (2,640,485) | (636,622) | 2,329,541 | — | — | |||||
Institutional Service Class Shares | |||||||||||
Proceeds from shares issued | 1,105,274,192 | 70,197,666 | 967,067 | 4,136,896 | — | — | |||||
Dividends reinvested | 43,708,321 | 3,668,031 | 17,726,195 | 230,323 | — | — | |||||
Cost of shares redeemed | (863,152,616) | (32,891,462) | (8,913,971) | (9,685,115) | — | — | |||||
Total Institutional Service Class | 285,829,897 | 40,974,235 | 9,779,291 | (5,317,896) | — | — | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 556,206,945 | 1,310,442,243 | 8,684,644 | 56,283,383 | 389,719 | 604,566 | |||||
Dividends reinvested | 292,773,343 | 27,712,844 | 14,948,995 | 206,400 | 19,988 | 195,614 | |||||
Cost of shares redeemed | (1,737,940,901) | (1,236,343,059) | (24,888,853) | (89,722,342) | (4,495,721) | (7,011,753) | |||||
Total Institutional Class | (888,960,613) | 101,812,028 | (1,255,214) | (33,232,559) | (4,086,014) | (6,211,573) | |||||
Change in net assets from capital transactions: | $(582,993,591) | $123,609,123 | $7,296,976 | $(39,743,964) | $(8,089,439) | $(8,197,775) |
96 | 2022 Annual Report |
abrdn Emerging Markets Fund | abrdn Emerging Markets Sustainable Leaders Fund | abrdn Global Equity Impact Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 1,594,035 | 2,135,263 | 114,027 | 171,270 | 85,715 | 206,363 | |||||
Reinvested | 460,186 | 29,999 | 314,575 | 161 | 593 | 8,912 | |||||
Redeemed | (2,221,142) | (2,802,093) | (470,024) | (262,985) | (355,896) | (329,366) | |||||
Total Class A Shares | (166,921) | (636,831) | (41,422) | (91,554) | (269,588) | (114,091) | |||||
Class C Shares | |||||||||||
Issued | 43,499 | 69,251 | – | 4,498 | – | – | |||||
Reinvested | 46,845 | 4,008 | 18,509 | – | – | – | |||||
Redeemed | (250,625) | (244,367) | (59,979) | (103,046) | – | – | |||||
Total Class C Shares | (160,281) | (171,108) | (41,470) | (98,548) | – | – | |||||
Class R Shares | |||||||||||
Issued | 1,141,921 | 570,983 | 45,438 | 173,550 | – | – | |||||
Reinvested | 782,189 | 48,234 | 102,693 | – | – | – | |||||
Redeemed | (330,159) | (746,651) | (216,494) | (47,386) | – | – | |||||
Total Class R Shares | 1,593,951 | (127,434) | (68,363) | 126,164 | – | – | |||||
Institutional Service Class Shares | |||||||||||
Issued | 83,268,183 | 3,428,774 | 79,729 | 207,050 | – | – | |||||
Reinvested | 2,572,591 | 188,297 | 1,267,062 | 12,443 | – | – | |||||
Redeemed | (65,700,482) | (1,616,390) | (686,027) | (498,200) | – | – | |||||
Total Institutional Service Class Shares | 20,140,292 | 2,000,681 | 660,764 | (278,707) | – | – | |||||
Institutional Class Shares | |||||||||||
Issued | 36,388,629 | 62,992,325 | 679,385 | 2,828,408 | 26,137 | 36,993 | |||||
Reinvested | 17,171,457 | 1,418,989 | 1,062,473 | 11,097 | 1,142 | 12,794 | |||||
Redeemed | (118,342,884) | (60,646,610) | (1,603,456) | (4,765,341) | (298,060) | (414,603) | |||||
Total Institutional Class Shares | (64,782,798) | 3,764,704 | 138,402 | (1,925,836) | (270,781) | (364,816) | |||||
Total change in shares: | (43,375,757) | 4,830,012 | 647,911 | (2,268,481) | (540,369) | (478,907) |
2022 Annual Report | 97 |
abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income | $1,079,551 | $1,149,222 | $3,274,152 | $(737,373) | $1,372,703 | $(448,882) | |||||
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | 1,633,848 | 2,315,989 | (24,482,306) | 24,053,691 | (8,558,136) | 33,560,115 | |||||
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (8,689,667) | 9,547,124 | (118,020,445) | 45,444,052 | (43,496,780) | 6,867,462 | |||||
Changes in net assets resulting from operations | (5,976,268) | 13,012,335 | (139,228,599) | 68,760,370 | (50,682,213) | 39,978,695 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (550,004) | (357,482) | (7,629,460) | — | — | (712,615) | |||||
Class C | — | — | (43,299) | — | — | — | |||||
Class R | — | — | (178,327) | — | — | — | |||||
Institutional Class | (1,854,305) | (1,335,765) | (14,015,543) | — | — | (218,647) | |||||
Change in net assets from shareholder distributions | (2,404,309) | (1,693,247) | (21,866,629) | — | — | (931,262) | |||||
Change in net assets from capital transactions | (2,928,005) | 5,138,930 | 32,831,251 | 98,893,077 | (12,636,785) | (14,542,170) | |||||
Change in net assets | (11,308,582) | 16,458,018 | (128,263,977) | 167,653,447 | (63,318,998) | 24,505,263 | |||||
Net Assets: | |||||||||||
Beginning of year | 58,303,478 | 41,845,460 | 306,747,145 | 139,093,698 | 145,332,483 | 120,827,220 | |||||
End of year | $46,994,896 | $58,303,478 | $178,483,168 | $306,747,145 | $82,013,485 | $145,332,483 |
98 | 2022 Annual Report |
abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $1,542,589 | $3,399,084 | $9,431,681 | $35,856,728 | $712,259 | $1,159,778 | |||||
Dividends reinvested | 459,304 | 291,973 | 7,350,418 | — | — | 697,660 | |||||
Cost of shares redeemed | (1,873,045) | (2,176,253) | (19,537,173) | (49,254,721) | (10,551,412) | (15,087,013) | |||||
Total Class A | 128,848 | 1,514,804 | (2,755,074) | (13,397,993) | (9,839,153) | (13,229,575) | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | — | — | 43,286 | 161,335 | — | — | |||||
Dividends reinvested | — | — | 43,299 | — | — | — | |||||
Cost of shares redeemed | — | — | (19,256) | (356,629) | — | — | |||||
Total Class C | — | — | 67,329 | (195,294) | — | — | |||||
Class R Shares | |||||||||||
Proceeds from shares issued | — | — | 938,145 | 726,609 | — | — | |||||
Dividends reinvested | — | — | 178,046 | — | — | — | |||||
Cost of shares redeemed | — | — | (478,149) | (548,023) | — | — | |||||
Total Class R | — | — | 638,042 | 178,586 | — | — | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 1,658,833 | 9,837,291 | 127,740,123 | 132,013,360 | 475,331 | 1,133,183 | |||||
Dividends reinvested | 1,823,311 | 1,312,012 | 13,937,907 | — | — | 207,612 | |||||
Cost of shares redeemed | (6,538,997) | (7,525,177) | (106,797,076) | (19,705,582) | (3,272,963) | (2,653,390) | |||||
Total Institutional Class | (3,056,853) | 3,624,126 | 34,880,954 | 112,307,778 | (2,797,632) | (1,312,595) | |||||
Change in net assets from capital transactions: | $(2,928,005) | $5,138,930 | $32,831,251 | $98,893,077 | $(12,636,785) | $(14,542,170) |
2022 Annual Report | 99 |
abrdn Global Infrastructure Fund | abrdn International Small Cap Fund | abrdn International Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 64,757 | 143,830 | 263,970 | 973,407 | 26,547 | 35,557 | |||||
Reinvested | 20,134 | 12,790 | 192,470 | – | – | 23,040 | |||||
Redeemed | (81,561) | (93,312) | (636,737) | (1,343,639) | (394,467) | (469,556) | |||||
Total Class A Shares | 3,330 | 63,308 | (180,297) | (370,232) | (367,920) | (410,959) | |||||
Class C Shares | |||||||||||
Issued | – | – | 1,398 | 4,708 | – | – | |||||
Reinvested | – | – | 1,281 | – | – | – | |||||
Redeemed | – | – | (705) | (10,448) | – | – | |||||
Total Class C Shares | – | – | 1,974 | (5,740) | – | – | |||||
Class R Shares | |||||||||||
Issued | – | – | 34,522 | 20,419 | – | – | |||||
Reinvested | – | – | 5,013 | – | – | – | |||||
Redeemed | – | – | (16,245) | (15,252) | – | – | |||||
Total Class R Shares | – | – | 23,290 | 5,167 | – | – | |||||
Institutional Class Shares | |||||||||||
Issued | 70,795 | 417,957 | 3,828,420 | 3,426,460 | 17,036 | 33,788 | |||||
Reinvested | 79,817 | 57,376 | 360,992 | – | – | 6,676 | |||||
Redeemed | (286,787) | (327,354) | (3,729,923) | (520,211) | (109,891) | (81,282) | |||||
Total Institutional Class Shares | (136,175) | 147,979 | 459,489 | 2,906,249 | (92,855) | (40,818) | |||||
Total change in shares: | (132,845) | 211,287 | 304,456 | 2,535,444 | (460,775) | (451,777) |
100 | 2022 Annual Report |
abrdn Realty Income & Growth Fund | abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income | $778,977 | $535,640 | $(4,360,618) | $(3,170,915) | $(1,437,727) | $(1,201,535) | |||||
Net realized gain/(loss) from investments and foreign currency transactions | 2,985,249 | 7,737,328 | 37,496,663 | 254,359,887 | 2,817,747 | 131,925,314 | |||||
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | (14,020,801) | 10,847,684 | (303,779,602) | 172,320,085 | (135,458,814) | 27,391,542 | |||||
Changes in net assets resulting from operations | (10,256,575) | 19,120,652 | (270,643,557) | 423,509,057 | (134,078,794) | 158,115,321 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (146,200) | (132,211) | (33,412,568) | (8,820,880) | (86,439,173) | (32,838,262) | |||||
Class C | — | — | (10,627,887) | (3,106,149) | (101,349) | (162,943) | |||||
Class R | — | — | (1,193,211) | (263,620) | — | — | |||||
Institutional Service Class | — | — | (7,641,334) | (2,057,615) | (36,416,872) | (13,939,695) | |||||
Institutional Class | (8,236,405) | (6,158,978) | (170,135,539) | (35,151,160) | (3,524,570) | (1,285,641) | |||||
Change in net assets from shareholder distributions | (8,382,605) | (6,291,189) | (223,010,539) | (49,399,424) | (126,481,964) | (48,226,541) | |||||
Change in net assets from capital transactions | 2,945,089 | (3,351,392) | 25,650,936 | 88,369,619 | 78,191,306 | 10,897,865 | |||||
Change in net assets | (15,694,091) | 9,478,071 | (468,003,160) | 462,479,252 | (182,369,452) | 120,786,645 | |||||
Net Assets: | |||||||||||
Beginning of year | 57,683,418 | 48,205,347 | 1,195,847,092 | 733,367,840 | 519,500,605 | 398,713,960 | |||||
End of year | $41,989,327 | $57,683,418 | $727,843,932 | $1,195,847,092 | $337,131,153 | $519,500,605 |
2022 Annual Report | 101 |
abrdn Realty Income & Growth Fund | abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $185,980 | $242,415 | $20,277,259 | $23,006,316 | $2,565,716 | $3,192,815 | |||||
Dividends reinvested | 128,002 | 118,055 | 26,361,790 | 7,112,684 | 79,023,829 | 29,872,297 | |||||
Cost of shares redeemed | (738,916) | (1,560,020) | (39,579,226) | (40,856,034) | (29,656,026) | (24,314,645) | |||||
Total Class A | (424,934) | (1,199,550) | 7,059,823 | (10,737,034) | 51,933,519 | 8,750,467 | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | — | — | 2,628,175 | 3,386,802 | 75,853 | 19,828 | |||||
Dividends reinvested | — | — | 9,893,910 | 2,630,798 | 101,349 | 157,978 | |||||
Cost of shares redeemed | — | — | (11,067,124) | (13,933,885) | (82,812) | (1,113,057) | |||||
Total Class C | — | — | 1,454,961 | (7,916,285) | 94,390 | (935,251) | |||||
Class R Shares | |||||||||||
Proceeds from shares issued | — | — | 401,183 | 1,023,812 | — | — | |||||
Dividends reinvested | — | — | 1,152,789 | 246,182 | — | — | |||||
Cost of shares redeemed | — | — | (1,200,513) | (1,069,593) | — | — | |||||
Total Class R | — | — | 353,459 | 200,401 | — | — | |||||
Institutional Service Class Shares | |||||||||||
Proceeds from shares issued | — | — | 7,079,316 | 6,191,761 | 2,039,723 | 1,380,446 | |||||
Dividends reinvested | — | — | 7,333,017 | 1,986,418 | 35,857,287 | 13,645,836 | |||||
Cost of shares redeemed | — | — | (6,806,129) | (12,716,020) | (12,622,962) | (12,669,731) | |||||
Total Institutional Service Class | — | — | 7,606,204 | (4,537,841) | 25,274,048 | 2,356,551 | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 1,135,617 | 1,558,600 | 212,922,069 | 291,313,162 | 2,378,356 | 2,316,376 | |||||
Dividends reinvested | 8,034,241 | 5,990,413 | 142,349,678 | 29,290,180 | 3,445,850 | 1,257,892 | |||||
Cost of shares redeemed | (5,799,835) | (9,700,855) | (346,095,258) | (209,242,964) | (4,934,857) | (2,848,170) | |||||
Total Institutional Class | 3,370,023 | (2,151,842) | 9,176,489 | 111,360,378 | 889,349 | 726,098 | |||||
Change in net assets from capital transactions: | $2,945,089 | $(3,351,392) | $25,650,936 | $88,369,619 | $78,191,306 | $10,897,865 |
102 | 2022 Annual Report |
abrdn Realty Income & Growth Fund | abrdn U.S. Small Cap Equity Fund | abrdn U.S. Sustainable Leaders Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 13,704 | 17,991 | 567,743 | 538,007 | 208,059 | 213,509 | |||||
Reinvested | 9,053 | 9,766 | 674,560 | 185,082 | 6,125,878 | 2,159,963 | |||||
Redeemed | (55,619) | (117,101) | (1,151,284) | (950,207) | (2,606,941) | (1,629,190) | |||||
Total Class A Shares | (32,862) | (89,344) | 91,019 | (227,118) | 3,726,996 | 744,282 | |||||
Class C Shares | |||||||||||
Issued | – | – | 99,538 | 100,138 | 9,258 | 1,518 | |||||
Reinvested | – | – | 336,528 | 84,809 | 10,839 | 14,271 | |||||
Redeemed | – | – | (439,311) | (404,364) | (10,119) | (92,517) | |||||
Total Class C Shares | – | – | (3,245) | (219,417) | 9,978 | (76,728) | |||||
Class R Shares | |||||||||||
Issued | – | – | 13,153 | 26,643 | – | – | |||||
Reinvested | – | – | 34,268 | 7,188 | – | – | |||||
Redeemed | – | – | (43,323) | (29,099) | – | – | |||||
Total Class R Shares | – | – | 4,098 | 4,732 | – | – | |||||
Institutional Service Class Shares | |||||||||||
Issued | – | – | 193,426 | 131,919 | 163,154 | 87,358 | |||||
Reinvested | – | – | 170,021 | 47,854 | 2,472,916 | 905,497 | |||||
Redeemed | – | – | (182,787) | (279,784) | (978,676) | (775,538) | |||||
Total Institutional Service Class Shares | – | – | 180,660 | (100,011) | 1,657,394 | 217,317 | |||||
Institutional Class Shares | |||||||||||
Issued | 82,122 | 112,658 | 5,454,490 | 6,279,695 | 181,226 | 139,481 | |||||
Reinvested | 573,732 | 492,542 | 3,292,845 | 704,938 | 235,856 | 83,029 | |||||
Redeemed | (431,610) | (726,895) | (9,375,510) | (4,532,758) | (391,382) | (170,668) | |||||
Total Institutional Class Shares | 224,244 | (121,695) | (628,175) | 2,451,875 | 25,700 | 51,842 | |||||
Total change in shares: | 191,382 | (211,039) | (355,643) | 1,910,061 | 5,420,068 | 936,713 |
2022 Annual Report | 103 |
abrdn U.S. Sustainable Leaders Smaller Companies Fund(a) | |||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||
From Investment Activities: | |||
Operations: | |||
Net investment income | $(102,325) | $(70,825) | |
Net realized gain/(loss) from investments and foreign currency transactions | (318,550) | 6,101,911 | |
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | (5,446,133) | 813,341 | |
Changes in net assets resulting from operations | (5,867,008) | 6,844,427 | |
Distributions to Shareholders From: | |||
Distributable earnings | |||
Class A | (2,703,472) | �� | (901,851) |
Class C | (181,578) | (230,092) | |
Class R | (775,300) | (271,918) | |
Institutional Service Class | (115,420) | (32,120) | |
Institutional Class | (1,464,436) | (382,181) | |
Change in net assets from shareholder distributions | (5,240,206) | (1,818,162) | |
Change in net assets from capital transactions | 7,645,361 | 509,577 | |
Change in net assets | (3,461,853) | 5,535,842 | |
Net Assets: | |||
Beginning of year | 19,425,858 | 13,890,016 | |
End of year | $15,964,005 | $19,425,858 |
(a) | Effective August 18, 2022, the Class C had zero assets. On August 18, 2022, the abrdn U.S. Sustainable Leaders Smaller Companies Fund ceased offering Class C Shares. |
104 | 2022 Annual Report |
abrdn U.S. Sustainable Leaders Smaller Companies Fund | |||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||
Capital Transactions: | |||
Class A Shares | |||
Proceeds from shares issued | $5,226,490 | $810,347 | |
Dividends reinvested | 2,304,020 | 763,859 | |
Cost of shares redeemed | (3,598,106) | (1,960,220) | |
Total Class A | 3,932,404 | (386,014) | |
Class C Shares | |||
Proceeds from shares issued | 627,907 | 92,440 | |
Dividends reinvested | 168,111 | 227,027 | |
Cost of shares redeemed | (1,058,100) | (210,112) | |
Total Class C | (262,082) | 109,355 | |
Class R Shares | |||
Proceeds from shares issued | 694,194 | 563,910 | |
Dividends reinvested | 775,300 | 271,918 | |
Cost of shares redeemed | (655,043) | (465,547) | |
Total Class R | 814,451 | 370,281 | |
Institutional Service Class Shares | |||
Proceeds from shares issued | 805,282 | 85,854 | |
Dividends reinvested | 115,420 | 32,120 | |
Cost of shares redeemed | (532,248) | (367,340) | |
Total Institutional Service Class | 388,454 | (249,366) | |
Institutional Class Shares | |||
Proceeds from shares issued | 3,712,861 | 1,040,176 | |
Dividends reinvested | 1,429,154 | 369,548 | |
Cost of shares redeemed | (2,369,881) | (744,403) | |
Total Institutional Class | 2,772,134 | 665,321 | |
Change in net assets from capital transactions: | $7,645,361 | $509,577 |
2022 Annual Report | 105 |
abrdn U.S. Sustainable Leaders Smaller Companies Fund | |||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||
Share Transactions: | |||
Class A Shares | |||
Issued | 642,781 | 81,901 | |
Reinvested | 272,343 | 88,205 | |
Redeemed | (513,295) | (208,896) | |
Total Class A Shares | 401,829 | (38,790) | |
Class C Shares | |||
Issued | 519,347 | 66,551 | |
Reinvested | 142,467 | 190,779 | |
Redeemed | (1,080,502) | (126,431) | |
Total Class C Shares | (418,688) | 130,899 | |
Class R Shares | |||
Issued | 101,153 | 66,118 | |
Reinvested | 106,938 | 36,401 | |
Redeemed | (104,938) | (56,150) | |
Total Class R Shares | 103,153 | 46,369 | |
Institutional Service Class Shares | |||
Issued | 89,076 | 8,071 | |
Reinvested | 12,954 | 3,526 | |
Redeemed | (74,014) | (38,207) | |
Total Institutional Service Class Shares | 28,016 | (26,610) | |
Institutional Class Shares | |||
Issued | 434,370 | 93,140 | |
Reinvested | 152,851 | 38,859 | |
Redeemed | (297,169) | (72,045) | |
Total Institutional Class Shares | 290,052 | 59,954 | |
Total change in shares: | 404,362 | 171,822 |
106 | 2022 Annual Report |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $37.76 | $0.01 | $(14.09) | $ (14.08) | $ – | $ (0.94) | $ (0.94) | $ 22.74 |
Year Ended October 31, 2021 | 33.90 | (0.11) | 4.50 | 4.39 | – | (0.53) | (0.53) | 37.76 |
Year Ended October 31, 2020 | 25.61 | 0.08 | 9.29 | 9.37 | –(g) | (1.08) | (1.08) | 33.90 |
Year Ended October 31, 2019 | 19.86 | 0.07 | 5.72 | 5.79 | (0.04) | – | (0.04) | 25.61 |
Year Ended October 31, 2018 | 22.48 | 0.06 | (2.45) | (2.39) | (0.23) | – | (0.23) | 19.86 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 35.58 | (0.22) | (13.17) | (13.39) | – | (0.94) | (0.94) | 21.25 |
Year Ended October 31, 2021 | 32.18 | (0.31) | 4.24 | 3.93 | – | (0.53) | (0.53) | 35.58 |
Year Ended October 31, 2020 | 24.52 | (0.09) | 8.83 | 8.74 | – | (1.08) | (1.08) | 32.18 |
Year Ended October 31, 2019 | 19.12 | (0.21) | 5.61 | 5.40 | – | – | – | 24.52 |
Year Ended October 31, 2018 | 21.59 | (0.09) | (2.35) | (2.44) | (0.03) | – | (0.03) | 19.12 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 36.71 | (0.06) | (13.68) | (13.74) | – | (0.94) | (0.94) | 22.03 |
Year Ended October 31, 2021 | 33.07 | (0.23) | 4.40 | 4.17 | – | (0.53) | (0.53) | 36.71 |
Year Ended October 31, 2020 | 25.08 | (0.06) | 9.13 | 9.07 | – | (1.08) | (1.08) | 33.07 |
Year Ended October 31, 2019 | 19.48 | 0.02 | 5.58 | 5.60 | – | – | – | 25.08 |
Year Ended October 31, 2018 | 22.07 | 0.04 | (2.46) | (2.42) | (0.17) | – | (0.17) | 19.48 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 38.05 | 0.05 | (14.18) | (14.13) | (0.02) | (0.94) | (0.96) | 22.96 |
Year Ended October 31, 2021 | 34.11 | (0.04) | 4.53 | 4.49 | (0.02) | (0.53) | (0.55) | 38.05 |
Year Ended October 31, 2020 | 25.75 | 0.15 | 9.34 | 9.49 | (0.05) | (1.08) | (1.13) | 34.11 |
Year Ended October 31, 2019 | 19.98 | 0.11 | 5.76 | 5.87 | (0.10) | – | (0.10) | 25.75 |
Year Ended October 31, 2018 | 22.62 | 0.11 | (2.46) | (2.35) | (0.29) | – | (0.29) | 19.98 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 38.24 | 0.06 | (14.23) | (14.17) | (0.03) | (0.94) | (0.97) | 23.10 |
Year Ended October 31, 2021 | 34.26 | 0.12 | 4.43 | 4.55 | (0.04) | (0.53) | (0.57) | 38.24 |
Year Ended October 31, 2020 | 25.85 | 0.05 | 9.51 | 9.56 | (0.07) | (1.08) | (1.15) | 34.26 |
Year Ended October 31, 2019 | 20.03 | 0.26 | 5.64 | 5.90 | (0.08) | – | (0.08) | 25.85 |
Year Ended October 31, 2018 | 22.65 | 0.05 | (2.38) | (2.33) | (0.29) | – | (0.29) | 20.03 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(g) | Less than $0.005 per share. |
108 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(38.20%) | $ 9,609 | 1.33%(e) | 1.78%(e) | 0.04% | 23.60% |
12.98%(f) | 18,476 | 1.32%(e) | 1.58%(e) | (0.28%) | 45.21% |
38.06%(f) | 10,888 | 1.32%(e) | 2.55%(e) | 0.28% | 56.48% |
29.21% | 8,685 | 1.60%(e) | 3.19%(e) | 0.30% | 115.09% |
(10.76%) | 5,978 | 1.95%(e) | 3.01%(e) | 0.27% | 26.13% |
(38.62%) | 1,533 | 1.99%(e) | 2.51%(e) | (0.76%) | 23.60% |
12.23% | 3,782 | 1.99%(e) | 2.33%(e) | (0.86%) | 45.21% |
37.13% | 587 | 1.99%(e) | 3.37%(e) | (0.37%) | 56.48% |
28.24% | 839 | 2.38%(e) | 3.99%(e) | (0.96%) | 115.09% |
(11.32%) | 1,568 | 2.62%(e) | 3.81%(e) | (0.42%) | 26.13% |
(38.37%) | 2,356 | 1.61%(e) | 2.06%(e) | (0.22%) | 23.60% |
12.63%(f) | 4,557 | 1.64%(e) | 1.90%(e) | (0.62%) | 45.21% |
37.63%(f) | 3,215 | 1.62%(e) | 2.85%(e) | (0.23%) | 56.48% |
28.75% | 2,682 | 1.92%(e) | 3.52%(e) | 0.07% | 115.09% |
(11.07%) | 1,664 | 2.27%(e) | 3.33%(e) | 0.18% | 26.13% |
(38.07%) | 349 | 1.10%(e) | 1.55%(e) | 0.15% | 23.60% |
13.21% | 959 | 1.08%(e) | 1.34%(e) | (0.10%) | 45.21% |
38.37% | 639 | 1.09%(e) | 2.32%(e) | 0.55% | 56.48% |
29.52% | 543 | 1.40%(e) | 2.96%(e) | 0.45% | 115.09% |
(10.57%) | 532 | 1.72%(e) | 2.78%(e) | 0.49% | 26.13% |
(37.99%) | 16,915 | 0.99%(e) | 1.51%(e) | 0.19% | 23.60% |
13.33% | 60,300 | 0.99%(e) | 1.33%(e) | 0.32% | 45.21% |
38.55% | 4,919 | 0.99%(e) | 2.34%(e) | 0.20% | 56.48% |
29.59% | 1,336 | 1.16%(e) | 2.97%(e) | 1.09% | 115.09% |
(10.46%) | 299 | 1.62%(e) | 2.78%(e) | 0.21% | 26.13% |
2022 Annual Report | 109 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Tax Return of Capital | Total Distributions | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $4.74 | $0.20(e) | $(0.95) | $ (0.75) | $ (0.22) | $ (0.01) | $ (0.01) | $ (0.24) |
Year Ended October 31, 2021 | 3.68 | 0.23 | 1.06 | 1.29 | (0.23) | – | – | (0.23) |
Year Ended October 31, 2020 | 3.99 | 0.20 | (0.28) | (0.08) | (0.23) | – | – | (0.23) |
Year Ended October 31, 2019 | 3.85 | 0.23 | 0.14 | 0.37 | (0.23) | – | – | (0.23) |
Year Ended October 31, 2018 | 4.04 | 0.17 | (0.13) | 0.04 | (0.23) | –(g) | –(g) | (0.23) |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 4.74 | 0.21(e) | (0.95) | (0.74) | (0.23) | (0.01) | (0.01) | (0.25) |
Year Ended October 31, 2021 | 3.69 | 0.24 | 1.05 | 1.29 | (0.24) | – | – | (0.24) |
Year Ended October 31, 2020 | 4.00 | 0.21 | (0.28) | (0.07) | (0.24) | – | – | (0.24) |
Year Ended October 31, 2019 | 3.85 | 0.24 | 0.15 | 0.39 | (0.24) | – | – | (0.24) |
Year Ended October 31, 2018 | 4.04 | 0.18 | (0.13) | 0.05 | (0.24) | –(g) | –(g) | (0.24) |
(a) | Net investment income is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Included within Net Investment Income per share, Total Return, and Ratio of Net Investment Income to Average Net Assets reflects the effects of a liability accrued on February 28, 2022 relating to withholding tax refunds that the Fund previously received and recorded which are being contested by the local tax authority. The accrued liability resulted in a decrease in net assets of approximately 0.87% as of October 31, 2022. (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Net Investment Income per share, Total Return, and Ratio of Net Investment Loss to Average Net Assets for Class A Shares would have been $0.24, (15.67%), and 5.49%, respectively. For Institutional Class Shares, these amounts would have been $0.24, (15.45%), and 5.67%, respectively. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(g) | Less than $0.005 per share. |
(h) | Includes interest expense that amounts to 0.03% for Class A and Institutional Class for the years ended October 31, 2018. |
110 | 2022 Annual Report |
Ratios/Supplemental Data | |||||||
Redemption Fees | Net Asset Value, End of Period | Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
$ – | $ 3.75 | (16.34%)(e) | $ 4,094 | 1.50% | 1.61% | 4.62%(e) | 78.51% |
– | 4.74 | 35.40% | 4,986 | 1.50% | 1.66% | 5.03% | 59.28% |
– | 3.68 | (2.04%)(f) | 3,885 | 1.50% | 1.60% | 5.20% | 85.01% |
– | 3.99 | 10.02%(f) | 4,399 | 1.50% | 1.61% | 6.00% | 105.70% |
–(g) | 3.85 | 0.79% | 4,505 | 1.52%(h) | 1.60%(h) | 4.17% | 66.16% |
– | 3.75 | (16.12%)(e) | 96,362 | 1.25% | 1.34% | 4.81%(e) | 78.51% |
– | 4.74 | 35.36% | 123,166 | 1.25% | 1.39% | 5.26% | 59.28% |
– | 3.69 | (1.77%) | 100,350 | 1.25% | 1.35% | 5.37% | 85.01% |
– | 4.00 | 10.60% | 122,197 | 1.25% | 1.33% | 6.21% | 105.70% |
–(g) | 3.85 | 1.02% | 135,262 | 1.28%(h) | 1.35%(h) | 4.44% | 66.16% |
2022 Annual Report | 111 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $18.17 | $0.08 | $(3.93) | $ (3.85) | $ – | $ (1.94) | $ (1.94) | $ 12.38 |
Year Ended October 31, 2021 | 13.21 | (0.06) | 5.02 | 4.96 | – | – | – | 18.17 |
Year Ended October 31, 2020 | 12.87 | (0.01) | 0.77 | 0.76 | (0.08) | (0.34) | (0.42) | 13.21 |
Year Ended October 31, 2019 | 12.75 | 0.08 | 1.08 | 1.16 | (0.09) | (0.95) | (1.04) | 12.87 |
Year Ended October 31, 2018 | 14.66 | 0.09 | (0.72) | (0.63) | (0.10) | (1.18) | (1.28) | 12.75 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 16.77 | (0.02) | (3.57) | (3.59) | – | (1.94) | (1.94) | 11.24 |
Year Ended October 31, 2021 | 12.27 | (0.15) | 4.65 | 4.50 | – | – | – | 16.77 |
Year Ended October 31, 2020 | 11.98 | (0.08) | 0.71 | 0.63 | – | (0.34) | (0.34) | 12.27 |
Year Ended October 31, 2019 | 11.93 | 0.01 | 0.99 | 1.00 | – | (0.95) | (0.95) | 11.98 |
Year Ended October 31, 2018 | 13.78 | –(g) | (0.67) | (0.67) | – | (1.18) | (1.18) | 11.93 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 17.19 | 0.02 | (3.68) | (3.66) | – | (1.94) | (1.94) | 11.59 |
Year Ended October 31, 2021 | 12.54 | (0.11) | 4.76 | 4.65 | – | – | – | 17.19 |
Year Ended October 31, 2020 | 12.21 | (0.05) | 0.73 | 0.68 | (0.01) | (0.34) | (0.35) | 12.54 |
Year Ended October 31, 2019 | 12.15 | 0.03 | 1.01 | 1.04 | (0.03) | (0.95) | (0.98) | 12.21 |
Year Ended October 31, 2018 | 14.04 | 0.03 | (0.68) | (0.65) | (0.06) | (1.18) | (1.24) | 12.15 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 18.49 | 0.11 | (4.00) | (3.89) | – | (1.94) | (1.94) | 12.66 |
Year Ended October 31, 2021 | 13.41 | (0.02) | 5.10 | 5.08 | – | – | – | 18.49 |
Year Ended October 31, 2020 | 13.05 | 0.02 | 0.80 | 0.82 | (0.12) | (0.34) | (0.46) | 13.41 |
Year Ended October 31, 2019 | 12.94 | 0.11 | 1.08 | 1.19 | (0.13) | (0.95) | (1.08) | 13.05 |
Year Ended October 31, 2018 | 14.87 | 0.13 | (0.73) | (0.60) | (0.15) | (1.18) | (1.33) | 12.94 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 18.27 | 0.08 | (3.91) | (3.83) | – | (1.94) | (1.94) | 12.50 |
Year Ended October 31, 2021 | 13.24 | –(g) | 5.03 | 5.03 | – | – | – | 18.27 |
Year Ended October 31, 2020 | 12.88 | 0.03 | 0.79 | 0.82 | (0.12) | (0.34) | (0.46) | 13.24 |
Year Ended October 31, 2019 | 12.77 | 0.13 | 1.06 | 1.19 | (0.13) | (0.95) | (1.08) | 12.88 |
Year Ended October 31, 2018 | 14.69 | 0.14 | (0.73) | (0.59) | (0.15) | (1.18) | (1.33) | 12.77 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(g) | Less than $0.005 per share. |
112 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(23.84%) | $ 19,947 | 1.48%(e) | 2.17%(e) | 0.55% | 129.38% |
37.55% | 27,814 | 1.53% | 2.17% | (0.35%) | 21.98% |
5.93%(f) | 22,455 | 1.53%(e) | 2.17%(e) | (0.06%) | 29.04% |
10.40%(f) | 26,719 | 1.53%(e) | 2.07%(e) | 0.66% | 32.68% |
(4.97%) | 27,530 | 1.53% | 1.92% | 0.67% | 22.06% |
(24.32%) | 135 | 2.14%(e) | 3.05%(e) | (0.12%) | 129.38% |
36.67% | 195 | 2.19% | 3.03% | (1.01%) | 21.98% |
5.24% | 205 | 2.19%(e) | 3.04%(e) | (0.68%) | 29.04% |
9.62% | 638 | 2.19%(e) | 2.95%(e) | 0.05% | 32.68% |
(5.53%) | 1,713 | 2.19% | 2.77% | 0.02% | 22.06% |
(24.12%) | 588 | 1.88%(e) | 2.57%(e) | 0.13% | 129.38% |
37.08% | 903 | 1.87% | 2.51% | (0.69%) | 21.98% |
5.58% | 898 | 1.91%(e) | 2.55%(e) | (0.42%) | 29.04% |
9.83% | 1,554 | 1.94%(e) | 2.48%(e) | 0.26% | 32.68% |
(5.27%) | 2,120 | 1.94% | 2.33% | 0.26% | 22.06% |
(23.62%) | 236 | 1.23%(e) | 1.92%(e) | 0.78% | 129.38% |
37.88% | 343 | 1.29% | 1.93% | (0.12%) | 21.98% |
6.25% | 250 | 1.29%(e) | 1.93%(e) | 0.18% | 29.04% |
10.56% | 265 | 1.29%(e) | 1.83%(e) | 0.88% | 32.68% |
(4.65%) | 460 | 1.26% | 1.65% | 0.94% | 22.06% |
(23.57%) | 3,740 | 1.13%(e) | 1.88%(e) | 0.61% | 129.38% |
37.99% | 1,583 | 1.19% | 1.88% | (0.02%) | 21.98% |
6.39% | 1,409 | 1.19%(e) | 1.88%(e) | 0.27% | 29.04% |
10.71% | 1,390 | 1.19%(e) | 1.77%(e) | 1.01% | 32.68% |
(4.63%) | 2,104 | 1.19% | 1.62% | 1.01% | 22.06% |
2022 Annual Report | 113 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $20.15 | $0.06 | $(6.98) | $ (6.92) | $ (0.02) | $ (1.92) | $ (1.94) | $ 11.29 |
Year Ended October 31, 2021 | 16.79 | 0.04 | 3.46 | 3.50 | �� | (0.14) | (0.14) | 20.15 |
Year Ended October 31, 2020 | 15.30 | 0.01 | 1.71 | 1.72 | (0.22) | (0.01) | (0.23) | 16.79 |
Year Ended October 31, 2019 | 13.12 | 0.07 | 2.26 | 2.33 | (0.13) | (0.02) | (0.15) | 15.30 |
Year Ended October 31, 2018 | 15.74 | 0.07 | (2.53) | (2.46) | (0.16) | – | (0.16) | 13.12 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 19.90 | (0.01) | (6.88) | (6.89) | – | (1.92) | (1.92) | 11.09 |
Year Ended October 31, 2021 | 16.68 | (0.08) | 3.44 | 3.36 | – | (0.14) | (0.14) | 19.90 |
Year Ended October 31, 2020 | 15.18 | (0.06) | 1.69 | 1.63 | (0.12) | (0.01) | (0.13) | 16.68 |
Year Ended October 31, 2019 | 12.97 | –(g) | 2.24 | 2.24 | (0.01) | (0.02) | (0.03) | 15.18 |
Year Ended October 31, 2018 | 15.55 | –(g) | (2.51) | (2.51) | (0.07) | – | (0.07) | 12.97 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 19.89 | 0.04 | (6.90) | (6.86) | –(g) | (1.92) | (1.92) | 11.11 |
Year Ended October 31, 2021 | 16.60 | 0.01 | 3.42 | 3.43 | – | (0.14) | (0.14) | 19.89 |
Year Ended October 31, 2020 | 15.14 | –(g) | 1.68 | 1.68 | (0.21) | (0.01) | (0.22) | 16.60 |
Year Ended October 31, 2019 | 13.00 | 0.07 | 2.21 | 2.28 | (0.12) | (0.02) | (0.14) | 15.14 |
Year Ended October 31, 2018 | 15.61 | 0.06 | (2.52) | (2.46) | (0.15) | – | (0.15) | 13.00 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 20.26 | 0.11 | (7.01) | (6.90) | (0.10) | (1.92) | (2.02) | 11.34 |
Year Ended October 31, 2021 | 16.85 | 0.12 | 3.46 | 3.58 | (0.03) | (0.14) | (0.17) | 20.26 |
Year Ended October 31, 2020 | 15.37 | 0.07 | 1.70 | 1.77 | (0.28) | (0.01) | (0.29) | 16.85 |
Year Ended October 31, 2019 | 13.19 | 0.23 | 2.16 | 2.39 | (0.19) | (0.02) | (0.21) | 15.37 |
Year Ended October 31, 2018 | 15.78 | 0.14 | (2.55) | (2.41) | (0.18) | – | (0.18) | 13.19 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 20.34 | 0.14 | (7.05) | (6.91) | (0.11) | (1.92) | (2.03) | 11.40 |
Year Ended October 31, 2021 | 16.90 | 0.14 | 3.48 | 3.62 | (0.04) | (0.14) | (0.18) | 20.34 |
Year Ended October 31, 2020 | 15.39 | 0.09 | 1.72 | 1.81 | (0.29) | (0.01) | (0.30) | 16.90 |
Year Ended October 31, 2019 | 13.20 | 0.13 | 2.27 | 2.40 | (0.19) | (0.02) | (0.21) | 15.39 |
Year Ended October 31, 2018 | 15.81 | 0.15 | (2.55) | (2.40) | (0.21) | – | (0.21) | 13.20 |
(a) | Net investment income is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(f) | Includes interest expense that amounts to less than 0.01%. |
(g) | Less than $0.005 per share. |
(h) | Amount is less than 0.005%. |
114 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(37.56%)(e) | $ 63,232 | 1.60%(f) | 1.63%(f) | 0.39% | 36.82% |
20.87% | 116,268 | 1.56%(f) | 1.56%(f) | 0.20% | 37.26% |
11.31% | 107,572 | 1.59%(f) | 1.59%(f) | 0.09% | 26.13% |
17.89% | 134,382 | 1.59%(f) | 1.59%(f) | 0.46% | 14.86% |
(15.80%) | 143,297 | 1.59%(f) | 1.59%(f) | 0.49% | 20.39% |
(37.87%) | 4,162 | 2.10%(f) | 2.21%(f) | (0.09%) | 36.82% |
20.16% | 10,662 | 2.10%(f) | 2.13%(f) | (0.38%) | 37.26% |
10.74% | 11,786 | 2.10%(f) | 2.19%(f) | (0.40%) | 26.13% |
17.26% | 15,611 | 2.10%(f) | 2.20%(f) | (0.03%) | 14.86% |
(16.20%) | 15,886 | 2.10%(f) | 2.21%(f) | –(h) | 20.39% |
(37.71%) | 92,428 | 1.75%(f) | 1.78%(f) | 0.26% | 36.82% |
20.68% | 133,696 | 1.72%(f) | 1.72%(f) | 0.04% | 37.26% |
11.13% | 113,707 | 1.73%(f) | 1.73%(f) | 0.01% | 26.13% |
17.72% | 108,487 | 1.75%(f) | 1.75%(f) | 0.48% | 14.86% |
(15.93%) | 89,874 | 1.75%(f) | 1.75%(f) | 0.40% | 20.39% |
(37.37%) | 494,873 | 1.25%(f) | 1.28%(f) | 0.79% | 36.82% |
21.29% | 476,046 | 1.21%(f) | 1.21%(f) | 0.56% | 37.26% |
11.64%(e) | 362,229 | 1.24%(f) | 1.24%(f) | 0.50% | 26.13% |
18.38%(e) | 297,466 | 1.24%(f) | 1.24%(f) | 1.55% | 14.86% |
(15.48%) | 118,917 | 1.16%(f) | 1.16%(f) | 0.89% | 20.39% |
(37.26%) | 1,606,819 | 1.10%(f) | 1.22%(f) | 0.90% | 36.82% |
21.45% | 4,184,781 | 1.10%(f) | 1.14%(f) | 0.69% | 37.26% |
11.86% | 3,414,059 | 1.10%(f) | 1.18%(f) | 0.59% | 26.13% |
18.45% | 4,420,838 | 1.10%(f) | 1.16%(f) | 0.91% | 14.86% |
(15.38%) | 5,511,182 | 1.10%(f) | 1.14%(f) | 1.00% | 20.39% |
2022 Annual Report | 115 |
Investment Activities | Distributions | ||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | |
Class A Shares | |||||||
Year Ended October 31, 2022 | $18.83 | $0.04 | $(5.77) | $ (5.73) | $ (0.01) | $ (3.85) | $ (3.86) |
Year Ended October 31, 2021 | 15.74 | 0.02 | 3.07 | 3.09 | –(f) | – | –(f) |
Year Ended October 31, 2020 | 14.68 | –(f) | 1.21 | 1.21 | (0.15) | – | (0.15) |
Year Ended October 31, 2019 | 13.28 | 0.12 | 1.57 | 1.69 | (0.29) | – | (0.29) |
Year Ended October 31, 2018 | 15.04 | 0.15 | (1.78) | (1.63) | (0.13) | – | (0.13) |
Class C Shares | |||||||
Year Ended October 31, 2022 | 17.58 | (0.04) | (5.29) | (5.33) | – | (3.85) | (3.85) |
Year Ended October 31, 2021 | 14.79 | (0.11) | 2.90 | 2.79 | – | – | – |
Year Ended October 31, 2020 | 13.76 | (0.08) | 1.12 | 1.04 | (0.01) | – | (0.01) |
Year Ended October 31, 2019 | 12.44 | 0.03 | 1.48 | 1.51 | (0.19) | – | (0.19) |
Year Ended October 31, 2018 | 14.09 | 0.04 | (1.66) | (1.62) | (0.03) | – | (0.03) |
Class R Shares | |||||||
Year Ended October 31, 2022 | 17.87 | – | (5.40) | (5.40) | – | (3.85) | (3.85) |
Year Ended October 31, 2021 | 14.98 | (0.02) | 2.91 | 2.89 | – | – | – |
Year Ended October 31, 2020 | 13.97 | (0.03) | 1.14 | 1.11 | (0.10) | – | (0.10) |
Year Ended October 31, 2019 | 12.65 | 0.08 | 1.50 | 1.58 | (0.26) | – | (0.26) |
Year Ended October 31, 2018 | 14.33 | 0.10 | (1.68) | (1.58) | (0.10) | – | (0.10) |
Institutional Service Class Shares | |||||||
Year Ended October 31, 2022 | 19.25 | 0.08 | (5.93) | (5.85) | (0.02) | (3.85) | (3.87) |
Year Ended October 31, 2021 | 16.08 | 0.08 | 3.14 | 3.22 | (0.05) | – | (0.05) |
Year Ended October 31, 2020 | 15.00 | 0.06 | 1.22 | 1.28 | (0.20) | – | (0.20) |
Year Ended October 31, 2019 | 13.58 | 0.17 | 1.60 | 1.77 | (0.35) | – | (0.35) |
Year Ended October 31, 2018 | 15.37 | 0.20 | (1.80) | (1.60) | (0.19) | – | (0.19) |
Institutional Class Shares | |||||||
Year Ended October 31, 2022 | 19.34 | 0.09 | (5.97) | (5.88) | (0.02) | (3.85) | (3.87) |
Year Ended October 31, 2021 | 16.15 | 0.09 | 3.15 | 3.24 | (0.05) | – | (0.05) |
Year Ended October 31, 2020 | 15.06 | 0.06 | 1.23 | 1.29 | (0.20) | – | (0.20) |
Year Ended October 31, 2019 | 13.63 | 0.17 | 1.61 | 1.78 | (0.35) | – | (0.35) |
Year Ended October 31, 2018 | 15.43 | 0.21 | (1.82) | (1.61) | (0.19) | – | (0.19) |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | Less than $0.005 per share. |
(g) | Includes interest expense that amounts to 0.02% for Class C and Institutional class. Includes interest expense that amounts to 0.01% for Class A, Class R and Institutional Service Class. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
116 | 2022 Annual Report |
Ratios/Supplemental Data | ||||||
Net Asset Value, End of Period | Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
$ 9.24 | (37.00%) | $ 11,345 | 1.48%(e) | 1.63%(e) | 0.33% | 29.36% |
18.83 | 19.65% | 23,898 | 1.46%(e) | 1.46%(e) | 0.11% | 120.50% |
15.74 | 8.24% | 21,418 | 1.49%(e) | 1.49%(e) | 0.02% | 37.50% |
14.68 | 13.13% | 24,719 | 1.52%(g) | 1.52%(g) | 0.89% | 28.30% |
13.28 | (10.93%) | 24,957 | 1.38% | 1.38% | 0.99% | 20.75% |
8.40 | (37.41%) | 206 | 2.10%(e) | 2.36%(e) | (0.35%) | 29.36% |
17.58 | 18.86% | 1,159 | 2.11%(e) | 2.21%(e) | (0.59%) | 120.50% |
14.79 | 7.56%(h) | 2,432 | 2.10%(e) | 2.20%(e) | (0.55%) | 37.50% |
13.76 | 12.43%(h) | 4,330 | 2.12%(g) | 2.24%(g) | 0.21% | 28.30% |
12.44 | (11.54%) | 8,074 | 2.10% | 2.10% | 0.27% | 20.75% |
8.62 | (37.15%) | 2,365 | 1.76%(e) | 1.91%(e) | 0.02% | 29.36% |
17.87 | 19.29% | 6,126 | 1.74%(e) | 1.74%(e) | (0.10%) | 120.50% |
14.98 | 7.97% | 3,244 | 1.74%(e) | 1.74%(e) | (0.22%) | 37.50% |
13.97 | 12.80% | 3,992 | 1.79%(g) | 1.79%(g) | 0.58% | 28.30% |
12.65 | (11.14%) | 5,041 | 1.64% | 1.64% | 0.74% | 20.75% |
9.53 | (36.80%) | 52,901 | 1.16%(e) | 1.31%(e) | 0.67% | 29.36% |
19.25 | 20.02% | 94,132 | 1.16%(e) | 1.16%(e) | 0.41% | 120.50% |
16.08 | 8.58%(h) | 83,121 | 1.15%(e) | 1.15%(e) | 0.36% | 37.50% |
15.00 | 13.49%(h) | 85,934 | 1.16%(g) | 1.16%(g) | 1.23% | 28.30% |
13.58 | (10.58%) | 84,902 | 1.06% | 1.06% | 1.31% | 20.75% |
9.59 | (36.78%) | 46,516 | 1.10%(e) | 1.31%(e) | 0.70% | 29.36% |
19.34 | 20.06% | 91,084 | 1.11%(e) | 1.15%(e) | 0.45% | 120.50% |
16.15 | 8.63%(h) | 107,158 | 1.10%(e) | 1.13%(e) | 0.41% | 37.50% |
15.06 | 13.55%(h) | 99,475 | 1.12%(g) | 1.13%(g) | 1.21% | 28.30% |
13.63 | (10.56%) | 272,152 | 1.02% | 1.02% | 1.37% | 20.75% |
2022 Annual Report | 117 |
Investment Activities | Distributions | ||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | |||||||
Year Ended October 31, 2022 | $18.45 | $0.39(f) | $(5.77) | $ (5.38) | $ –(g) | $ –(g) | $ 13.07 |
Year Ended October 31, 2021 | 13.14 | – | 5.37 | 5.37 | (0.06) | (0.06) | 18.45 |
Year Ended October 31, 2020 | 11.59 | 0.05 | 1.77 | 1.82 | (0.27) | (0.27) | 13.14 |
Year Ended October 31, 2019 | 10.29 | 0.18(j) | 1.30 | 1.48 | (0.18) | (0.18) | 11.59 |
Year Ended October 31, 2018 | 11.95 | 0.08 | (1.41) | (1.33) | (0.33) | (0.33) | 10.29 |
Institutional Class Shares | |||||||
Year Ended October 31, 2022 | 18.49 | 0.41(f) | (5.77) | (5.36) | (0.01) | (0.01) | 13.12 |
Year Ended October 31, 2021 | 13.18 | 0.04 | 5.37 | 5.41 | (0.10) | (0.10) | 18.49 |
Year Ended October 31, 2020 | 11.62 | 0.08 | 1.79 | 1.87 | (0.31) | (0.31) | 13.18 |
Year Ended October 31, 2019 | 10.30 | 0.21(j) | 1.30 | 1.51 | (0.19) | (0.19) | 11.62 |
Year Ended October 31, 2018 | 11.96 | 0.10 | (1.40) | (1.30) | (0.36) | (0.36) | 10.30 |
(a) | Net investment income is based on average shares outstanding during the period. |
(b) | Beginning with the year ended October 31, 2022, income taxes on recovered refunds were included in foreign tax withholding on the Statement of Operations and, as such, are not included within the ratios of expenses to average net assets. Income taxes on recovered refunds for years prior to October 31, 2022 were reflected as expenses on the Statement of Operations and included within the ratios of expenses to average net assets. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Includes interest expense that amounts to less than 0.01%. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(f) | Included within Net Investment Income per share, Total Return, and Ratio of Net Investment Income to Average Net Assets are the effects of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Net Investment Income per share, Total Return, and Ratio of Net Investment Loss to Average Net Assets for Class A Shares would have been $0.07, (30.98%) and 0.47%, respectively. For Institutional Class Shares, these amounts would have been $0.07, (30.83%) and 0.49%, respectively. |
(g) | Less than $0.005 per share. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(i) | Included within Total Return is the effect of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Total Return for Class A Shares would have been 15.82%. For Institutional Class Shares, this amount would have been 16.12%. |
(j) | Included within Net Investment Income per share, Total Return, and Ratio of Net Investment Income to Average Net Assets are the effects of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Net Investment Income per share, Total Return, and Ratio of Net Investment Loss to Average Net Assets for Class A Shares would have been $0.08, 13.56%, and 0.77%, respectively. For Institutional Class Shares, these amounts would have been $0.11, 13.81%, and 1.03%, respectively. |
118 | 2022 Annual Report |
Ratios/Supplemental Data | ||||||
Total Return | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers Excluding Accruals for Estimated Tax Due on Foreign Tax Refund Recoveries) to Average Net Assets (b) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets (b)(c)(d) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(b)(c)(d) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (e) |
(29.14%)(f)(h) | $ 26,986 | 1.17% | 1.17% | 1.72% | 2.59%(f) | 36.90% |
40.95% | 43,059 | 1.38% | 1.38% | 1.73% | 0.02% | 17.40% |
15.93%(i) | 32,180 | 1.41% | 1.41% | 1.92% | 0.40% | 32.11% |
14.76%(j) | 34,933 | 1.53% | 2.21% | 2.47% | 1.69%(j) | 125.21% |
(11.48%) | 35,964 | 1.77% | 2.44% | 2.44% | 0.72% | 19.00% |
(28.99%)(f)(h) | 19,384 | 0.92% | 0.92% | 1.44% | 2.71%(f) | 36.90% |
41.23% | 32,312 | 1.13% | 1.13% | 1.45% | 0.24% | 17.40% |
16.30%(i) | 27,839 | 1.16% | 1.16% | 1.61% | 0.65% | 32.11% |
14.99%(j) | 27,937 | 1.28% | 1.97% | 2.20% | 1.95%(j) | 125.21% |
(11.23%) | 28,477 | 1.52% | 2.22% | 2.23% | 0.89% | 19.00% |
2022 Annual Report | 119 |
Investment Activities | Distributions | ||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Tax Return of Capital | Total Distributions | Redemption Fees | |
Class A Shares | |||||||||
Year Ended October 31, 2022 | $24.18 | $0.41 | $(3.00) | $ (2.59) | $ (0.71) | $ (0.26) | $ – | $ (0.97) | $ – |
Year Ended October 31, 2021 | 19.03 | 0.45 | 5.41 | 5.86 | (0.71) | – | – | (0.71) | – |
Year Ended October 31, 2020 | 21.93 | 0.53 | (2.59) | (2.06) | (0.56) | (0.14) | (0.14) | (0.84) | – |
Year Ended October 31, 2019 | 18.82 | 0.30 | 3.48 | 3.78 | (0.64) | (0.03) | – | (0.67) | – |
Year Ended October 31, 2018 | 20.65 | 0.46 | (1.54) | (1.08) | (0.71) | (0.04) | – | (0.75) | –(e) |
Institutional Class Shares | |||||||||
Year Ended October 31, 2022 | 24.22 | 0.47 | (3.01) | (2.54) | (0.76) | (0.26) | – | (1.02) | – |
Year Ended October 31, 2021 | 19.05 | 0.52 | 5.41 | 5.93 | (0.76) | – | – | (0.76) | – |
Year Ended October 31, 2020 | 21.97 | 0.58 | (2.60) | (2.02) | (0.62) | (0.14) | (0.14) | (0.90) | – |
Year Ended October 31, 2019 | 18.85 | 0.34 | 3.50 | 3.84 | (0.69) | (0.03) | – | (0.72) | – |
Year Ended October 31, 2018 | 20.68 | 0.54 | (1.57) | (1.03) | (0.76) | (0.04) | – | (0.80) | –(e) |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Less than $0.005 per share. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
120 | 2022 Annual Report |
Ratios/Supplemental Data | ||||||
Net Asset Value, End of Period | Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
$ 20.62 | (11.04%) | $ 11,350 | 1.24% | 1.58% | 1.81% | 23.33% |
24.18 | 31.09% | 13,227 | 1.24% | 1.63% | 1.95% | 30.75% |
19.03 | (9.49%) | 9,206 | 1.33% | 1.55% | 2.61% | 23.76% |
21.93 | 20.41% | 12,776 | 1.45% | 1.59% | 1.46% | 31.62% |
18.82 | (5.39%) | 12,310 | 1.45% | 1.58% | 2.29% | 48.54% |
20.66 | (10.82%)(f) | 35,645 | 0.99% | 1.33% | 2.05% | 23.33% |
24.22 | 31.43% | 45,076 | 0.99% | 1.38% | 2.25% | 30.75% |
19.05 | (9.30%) | 32,640 | 1.08% | 1.27% | 2.90% | 23.76% |
21.97 | 20.73% | 87,441 | 1.20% | 1.31% | 1.68% | 31.62% |
18.85 | (5.13%) | 95,025 | 1.20% | 1.32% | 2.70% | 48.54% |
2022 Annual Report | 121 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $42.73 | $0.28 | $(16.37) | $ (16.09) | $ – | $ (2.86) | $ (2.86) | $ 23.78 |
Year Ended October 31, 2021 | 30.18 | (0.20) | 12.75 | 12.55 | – | – | – | 42.73 |
Year Ended October 31, 2020 | 28.11 | (0.09) | 3.63 | 3.54 | (0.34) | (1.13) | (1.47) | 30.18 |
Year Ended October 31, 2019 | 29.23 | 0.23 | 3.03 | 3.26 | (0.65) | (3.73) | (4.38) | 28.11 |
Year Ended October 31, 2018 | 31.35 | 0.47 | (1.56) | (1.09) | (0.17) | (0.86) | (1.03) | 29.23 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 38.21 | 0.09 | (14.50) | (14.41) | – | (2.86) | (2.86) | 20.94 |
Year Ended October 31, 2021 | 27.16 | (0.39) | 11.44 | 11.05 | – | – | – | 38.21 |
Year Ended October 31, 2020 | 25.43 | (0.25) | 3.27 | 3.02 | (0.16) | (1.13) | (1.29) | 27.16 |
Year Ended October 31, 2019 | 26.73 | (0.04) | 2.84 | 2.80 | (0.37) | (3.73) | (4.10) | 25.43 |
Year Ended October 31, 2018 | 28.78 | 0.20 | (1.39) | (1.19) | – | (0.86) | (0.86) | 26.73 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 39.97 | 0.21 | (15.26) | (15.05) | – | (2.86) | (2.86) | 22.06 |
Year Ended October 31, 2021 | 28.31 | (0.28) | 11.94 | 11.66 | – | – | – | 39.97 |
Year Ended October 31, 2020 | 26.46 | (0.15) | 3.40 | 3.25 | (0.27) | (1.13) | (1.40) | 28.31 |
Year Ended October 31, 2019 | 27.74 | 0.12 | 2.88 | 3.00 | (0.55) | (3.73) | (4.28) | 26.46 |
Year Ended October 31, 2018 | 29.82 | 0.30 | (1.43) | (1.13) | (0.09) | (0.86) | (0.95) | 27.74 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 43.15 | 0.44 | (16.61) | (16.17) | – | (2.86) | (2.86) | 24.12 |
Year Ended October 31, 2021 | 30.37 | (0.06) | 12.84 | 12.78 | – | – | – | 43.15 |
Year Ended October 31, 2020 | 28.25 | 0.01 | 3.65 | 3.66 | (0.41) | (1.13) | (1.54) | 30.37 |
Year Ended October 31, 2019 | 29.33 | 0.27 | 3.11 | 3.38 | (0.73) | (3.73) | (4.46) | 28.25 |
Year Ended October 31, 2018 | 31.43 | 0.58 | (1.57) | (0.99) | (0.25) | (0.86) | (1.11) | 29.33 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(f) | Includes interest expense that amounts to less than 0.01%. |
122 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(40.18%)(e) | $ 58,262 | 1.35%(f) | 1.43%(f) | 0.91% | 46.90% |
41.58%(e) | 112,408 | 1.34%(f) | 1.42%(f) | (0.54%) | 42.63% |
13.02% | 90,560 | 1.40% | 1.61% | (0.33%) | 29.65% |
13.93% | 75,754 | 1.49%(f) | 1.82%(f) | 0.86% | 35.37% |
(3.68%) | 49,391 | 1.53%(f) | 1.88%(f) | 1.48% | 18.07% |
(40.56%)(e) | 349 | 1.99%(f) | 2.23%(f) | 0.35% | 46.90% |
40.68%(e) | 561 | 1.99%(f) | 2.18%(f) | (1.15%) | 42.63% |
12.27% | 554 | 2.05% | 2.38% | (1.02%) | 29.65% |
13.21% | 829 | 2.15%(f) | 2.59%(f) | (0.17%) | 35.37% |
(4.31%) | 565 | 2.22%(f) | 2.65%(f) | 0.69% | 18.07% |
(40.36%) | 1,913 | 1.64%(f) | 1.72%(f) | 0.76% | 46.90% |
41.19% | 2,535 | 1.62%(f) | 1.70%(f) | (0.80%) | 42.63% |
12.68% | 1,649 | 1.69% | 1.90% | (0.61%) | 29.65% |
13.62% | 1,945 | 1.80%(f) | 2.13%(f) | 0.47% | 35.37% |
(3.98%) | 2,309 | 1.84%(f) | 2.19%(f) | 1.02% | 18.07% |
(39.96%)(e) | 117,960 | 0.99%(f) | 1.18%(f) | 1.44% | 46.90% |
42.08%(e) | 191,244 | 0.99%(f) | 1.15%(f) | (0.15%) | 42.63% |
13.41% | 46,330 | 1.04% | 1.35% | 0.03% | 29.65% |
14.39% | 35,248 | 1.15%(f) | 1.57%(f) | 1.01% | 35.37% |
(3.34%) | 12,418 | 1.20%(f) | 1.61%(f) | 1.84% | 18.07% |
2022 Annual Report | 123 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Tax Return of Capital | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $34.93 | $0.34(f) | $(13.10) | $ (12.76) | $ – | $ – | $ – | $ 22.17 |
Year Ended October 31, 2021 | 26.19 | (0.12) | 9.05 | 8.93 | (0.19) | – | (0.19) | 34.93 |
Year Ended October 31, 2020 | 26.95 | 0.17 | 0.29 | 0.46 | (1.22) | – | (1.22) | 26.19 |
Year Ended October 31, 2019 | 23.64 | 0.81(i) | 2.70 | 3.51 | (0.20) | – | (0.20) | 26.95 |
Year Ended October 31, 2018 | 28.01 | 0.01 | (3.20) | (3.19) | (1.15) | (0.03) | (1.18) | 23.64 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 35.96 | 0.42(f) | (13.50) | (13.08) | – | – | – | 22.88 |
Year Ended October 31, 2021 | 26.98 | (0.04) | 9.32 | 9.28 | (0.30) | – | (0.30) | 35.96 |
Year Ended October 31, 2020 | 27.74 | 0.24 | 0.30 | 0.54 | (1.30) | – | (1.30) | 26.98 |
Year Ended October 31, 2019 | 24.27 | 0.91(i) | 2.77 | 3.68 | (0.21) | – | (0.21) | 27.74 |
Year Ended October 31, 2018 | 28.73 | 0.09 | (3.30) | (3.21) | (1.22) | (0.03) | (1.25) | 24.27 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Beginning with the year ended October 31, 2022, income taxes on recovered refunds were included in foreign tax withholding on the Statement of Operations and, as such, are not included within the ratios of expenses to average net assets. Income taxes on recovered refunds for years prior to October 31, 2022 were reflected as expenses on the Statement of Operations and included within the ratios of expenses to average net assets. |
(c) | Includes interest expense that amounts to less than 0.01%. |
(d) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(f) | Included within Net Investment Income per share, Total Return, and Ratio of Net Investment Income to Average Net Assets are the effects of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Net Investment Income per share, Total Return and Ratio of Net Investment Loss to Average Net Assets for Class A Shares would have been $0.07, (37.36%) and 0.24%, respectively. For Institutional Class Shares, these amounts would have been $0.08, (37.18%) and 0.29%, respectively. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | Included within Total Return is the effect of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Total Return for Class A Shares would have been (0.38%). For Institutional Class Shares, this amount would have been (0.11%). |
(i) | Included within Net Investment Income per share, Total Return, and Ratio of Net Investment Income to Average Net Assets are the effects of withholding tax refunds and income taxes on recovered refunds (See Note 2i of the Notes to Financial Statements). If such amounts were excluded, the Net Investment Income per share, Total Return, and Ratio of Net Investment Loss to Average Net Assets for Class A Shares would have been $0.28, 12.13%, and 1.13%, respectively. For Institutional Class Shares, these amounts would have been $0.37, 12.41%, and 1.42%, respectively. |
124 | 2022 Annual Report |
Ratios/Supplemental Data | ||||||
Total Return | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers Excluding Accruals for Estimated Tax Due on Foreign Tax Refund Recoveries) to Average Net Assets (b) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets (b)(c) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(b)(c)(d) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (e) |
(36.53%)(f)(g) | $ 68,067 | 1.18% | 1.18% | 1.60% | 1.26%(f) | 38.19% |
34.20% | 120,080 | 1.38% | 1.38% | 1.62% | (0.36%) | 113.67% |
1.63%(h) | 100,780 | 1.38% | 1.38% | 1.71% | 0.67% | 34.20% |
15.02%(i) | 120,472 | 1.44% | 2.99% | 3.06% | 3.24%(i) | 131.52% |
(11.93%) | 126,383 | 1.54% | 2.50% | 2.50% | 0.05% | 19.46% |
(36.37%)(f)(g) | 13,946 | 0.93% | 0.93% | 1.27% | 1.50%(f) | 38.19% |
34.56% | 25,253 | 1.13% | 1.13% | 1.31% | (0.11%) | 113.67% |
1.86%(h) | 20,047 | 1.13% | 1.13% | 1.33% | 0.90% | 34.20% |
15.34%(i) | 27,390 | 1.18% | 2.77% | 2.82% | 3.53%(i) | 131.52% |
(11.71%) | 26,633 | 1.30% | 2.22% | 2.23% | 0.33% | 19.46% |
2022 Annual Report | 125 |
Investment Activities | Distributions | ||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |
Class A Shares | |||||||||
Year Ended October 31, 2022 | $15.68 | $0.15 | $(2.72) | $ (2.57) | $ (0.31) | $ (1.96) | $ (2.27) | $ – | $ 10.84 |
Year Ended October 31, 2021 | 12.40 | 0.11 | 4.84 | 4.95 | (0.13) | (1.54) | (1.67) | – | 15.68 |
Year Ended October 31, 2020 | 17.98 | 0.25 | (3.17) | (2.92) | (0.60) | (2.06) | (2.66) | – | 12.40 |
Year Ended October 31, 2019 | 21.38 | 0.32 | 3.28 | 3.60 | (0.52) | (6.48) | (7.00) | – | 17.98 |
Year Ended October 31, 2018 | 22.93 | 0.47 | (0.74) | (0.27) | (0.69) | (0.59) | (1.28) | –(f) | 21.38 |
Institutional Class Shares | |||||||||
Year Ended October 31, 2022 | 15.74 | 0.20 | (2.75) | (2.55) | (0.34) | (1.96) | (2.30) | – | 10.89 |
Year Ended October 31, 2021 | 12.44 | 0.14 | 4.86 | 5.00 | (0.16) | (1.54) | (1.70) | – | 15.74 |
Year Ended October 31, 2020 | 18.02 | 0.28 | (3.16) | (2.88) | (0.64) | (2.06) | (2.70) | – | 12.44 |
Year Ended October 31, 2019 | 21.41 | 0.36 | 3.29 | 3.65 | (0.56) | (6.48) | (7.04) | – | 18.02 |
Year Ended October 31, 2018 | 22.97 | 0.54 | (0.76) | (0.22) | (0.75) | (0.59) | (1.34) | –(f) | 21.41 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%, 0.01%, 0.05%, 0.03%, and 0.10% for Class A and Institutional Class for the years ended October 31, 2022, October 31, 2021, October 31, 2020, October 31, 2019, and October 31, 2018, respectively. |
(f) | Less than $0.005 per share. |
126 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(19.45%) | $ 397 | 1.25%(e) | 1.67%(e) | 1.13% | 23.36% |
44.07% | 1,090 | 1.26%(e) | 1.72%(e) | 0.80% | 32.52% |
(18.12%) | 1,971 | 1.30%(e) | 1.71%(e) | 1.84% | 22.61% |
25.65% | 2,341 | 1.28%(e) | 1.71%(e) | 1.83% | 20.70% |
(1.35%) | 1,751 | 1.34%(e) | 1.71%(e) | 2.16% | 42.71% |
(19.24%) | 41,592 | 1.00%(e) | 1.42%(e) | 1.53% | 23.36% |
44.41% | 56,593 | 1.01%(e) | 1.47%(e) | 1.01% | 32.52% |
(17.85%) | 46,235 | 1.05%(e) | 1.48%(e) | 2.05% | 22.61% |
25.97% | 75,232 | 1.03%(e) | 1.39%(e) | 2.10% | 20.70% |
(1.15%) | 83,573 | 1.10%(e) | 1.45%(e) | 2.46% | 42.71% |
2022 Annual Report | 127 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $49.57 | $(0.25) | $(9.33) | $ (9.58) | $ – | $ (9.80) | $ (9.80) | $ 30.19 |
Year Ended October 31, 2021 | 33.55 | (0.24) | 18.64 | 18.40 | – | (2.38) | (2.38) | 49.57 |
Year Ended October 31, 2020 | 33.19 | (0.20) | 3.08 | 2.88 | – | (2.52) | (2.52) | 33.55 |
Year Ended October 31, 2019 | 35.39 | (0.10) | 1.78 | 1.68 | –(f) | (3.88) | (3.88) | 33.19 |
Year Ended October 31, 2018 | 35.61 | (0.08) | (0.14) | (0.22) | – | – | – | 35.39 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 39.79 | (0.36) | (7.04) | (7.40) | – | (9.80) | (9.80) | 22.59 |
Year Ended October 31, 2021 | 27.48 | (0.42) | 15.11 | 14.69 | – | (2.38) | (2.38) | 39.79 |
Year Ended October 31, 2020 | 27.79 | (0.33) | 2.54 | 2.21 | – | (2.52) | (2.52) | 27.48 |
Year Ended October 31, 2019 | 30.53 | (0.27) | 1.41 | 1.14 | – | (3.88) | (3.88) | 27.79 |
Year Ended October 31, 2018 | 30.94 | (0.30) | (0.11) | (0.41) | – | – | – | 30.53 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 44.07 | (0.31) | (8.04) | (8.35) | – | (9.80) | (9.80) | 25.92 |
Year Ended October 31, 2021 | 30.12 | (0.32) | 16.65 | 16.33 | – | (2.38) | (2.38) | 44.07 |
Year Ended October 31, 2020 | 30.14 | (0.27) | 2.77 | 2.50 | – | (2.52) | (2.52) | 30.12 |
Year Ended October 31, 2019 | 32.64 | (0.19) | 1.57 | 1.38 | – | (3.88) | (3.88) | 30.14 |
Year Ended October 31, 2018 | 32.97 | (0.18) | (0.15) | (0.33) | – | – | – | 32.64 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 53.65 | (0.19) | (10.28) | (10.47) | – | (9.80) | (9.80) | 33.38 |
Year Ended October 31, 2021 | 36.06 | (0.15) | 20.12 | 19.97 | – | (2.38) | (2.38) | 53.65 |
Year Ended October 31, 2020 | 35.41 | (0.12) | 3.29 | 3.17 | – | (2.52) | (2.52) | 36.06 |
Year Ended October 31, 2019 | 37.39 | (0.01) | 1.93 | 1.92 | (0.02) | (3.88) | (3.90) | 35.41 |
Year Ended October 31, 2018 | 37.51 | 0.01 | (0.13) | (0.12) | – | – | – | 37.39 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 53.75 | (0.15) | (10.30) | (10.45) | – | (9.80) | (9.80) | 33.50 |
Year Ended October 31, 2021 | 36.09 | (0.10) | 20.14 | 20.04 | – | (2.38) | (2.38) | 53.75 |
Year Ended October 31, 2020 | 35.40 | (0.09) | 3.30 | 3.21 | – | (2.52) | (2.52) | 36.09 |
Year Ended October 31, 2019 | 37.37 | 0.01 | 1.92 | 1.93 | (0.02) | (3.88) | (3.90) | 35.40 |
Year Ended October 31, 2018 | 37.49 | 0.02 | (0.14) | (0.12) | – | – | – | 37.37 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | Less than $0.005 per share. |
128 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(23.82%) | $ 108,078 | 1.35%(e) | 1.35%(e) | (0.74%) | 59.08% |
56.92% | 172,963 | 1.35% | 1.35% | (0.56%) | 78.38% |
8.97% | 124,673 | 1.40%(e) | 1.40%(e) | (0.62%) | 60.67% |
7.15% | 159,391 | 1.41%(e) | 1.41%(e) | (0.33%) | 55.00% |
(0.62%) | 224,804 | 1.35%(e) | 1.35%(e) | (0.23%) | 38.28% |
(24.30%) | 25,068 | 1.99%(e) | 2.06%(e) | (1.38%) | 59.08% |
55.93% | 44,295 | 1.99% | 2.06% | (1.20%) | 78.38% |
8.25% | 36,621 | 2.05%(e) | 2.10%(e) | (1.26%) | 60.67% |
6.41% | 48,382 | 2.10%(e) | 2.10%(e) | (0.99%) | 55.00% |
(1.33%) | 75,913 | 2.06%(e) | 2.06%(e) | (0.95%) | 38.28% |
(24.04%) | 3,286 | 1.65%(e) | 1.65%(e) | (1.03%) | 59.08% |
56.50% | 5,408 | 1.63% | 1.63% | (0.84%) | 78.38% |
8.59% | 3,554 | 1.75%(e) | 1.75%(e) | (0.96%) | 60.67% |
6.78% | 5,272 | 1.75%(e) | 1.75%(e) | (0.65%) | 55.00% |
(1.00%) | 8,430 | 1.72%(e) | 1.72%(e) | (0.55%) | 38.28% |
(23.64%) | 31,893 | 1.11%(e) | 1.11%(e) | (0.50%) | 59.08% |
57.33% | 41,568 | 1.11% | 1.11% | (0.31%) | 78.38% |
9.24% | 31,548 | 1.13%(e) | 1.13%(e) | (0.35%) | 60.67% |
7.44% | 40,476 | 1.12%(e) | 1.12%(e) | (0.04%) | 55.00% |
(0.32%) | 50,163 | 1.08%(e) | 1.08%(e) | 0.03% | 38.28% |
(23.54%) | 559,518 | 0.99%(e) | 1.07%(e) | (0.38%) | 59.08% |
57.48% | 931,614 | 0.99% | 1.06% | (0.21%) | 78.38% |
9.37% | 536,973 | 1.04%(e) | 1.10%(e) | (0.27%) | 60.67% |
7.48% | 607,103 | 1.11%(e) | 1.11%(e) | 0.03% | 55.00% |
(0.32%) | 1,263,907 | 1.07%(e) | 1.07%(e) | 0.04% | 38.28% |
2022 Annual Report | 129 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $17.32 | $(0.05) | $(3.52) | $ (3.57) | $ – | $ (4.37) | $ (4.37) | $ 9.38 |
Year Ended October 31, 2021 | 13.79 | (0.05) | 5.31 | 5.26 | – | (1.73) | (1.73) | 17.32 |
Year Ended October 31, 2020 | 12.95 | (0.03) | 2.17 | 2.14 | (0.01) | (1.29) | (1.30) | 13.79 |
Year Ended October 31, 2019 | 12.53 | 0.01 | 1.79 | 1.80 | (0.02) | (1.36) | (1.38) | 12.95 |
Year Ended October 31, 2018 | 13.05 | 0.02 | 0.83 | 0.85 | (0.04) | (1.33) | (1.37) | 12.53 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 13.77 | (0.09) | (2.55) | (2.64) | – | (4.37) | (4.37) | 6.76 |
Year Ended October 31, 2021 | 11.36 | (0.12) | 4.26 | 4.14 | – | (1.73) | (1.73) | 13.77 |
Year Ended October 31, 2020 | 10.94 | (0.10) | 1.81 | 1.71 | – | (1.29) | (1.29) | 11.36 |
Year Ended October 31, 2019 | 10.87 | (0.06) | 1.49 | 1.43 | – | (1.36) | (1.36) | 10.94 |
Year Ended October 31, 2018 | 11.53 | (0.06) | 0.73 | 0.67 | – | (1.33) | (1.33) | 10.87 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 18.91 | (0.03) | (3.95) | (3.98) | – | (4.37) | (4.37) | 10.56 |
Year Ended October 31, 2021 | 14.89 | (0.02) | 5.77 | 5.75 | – | (1.73) | (1.73) | 18.91 |
Year Ended October 31, 2020 | 13.88 | (–)(f) | 2.34 | 2.34 | (0.04) | (1.29) | (1.33) | 14.89 |
Year Ended October 31, 2019 | 13.33 | 0.04 | 1.92 | 1.96 | (0.05) | (1.36) | (1.41) | 13.88 |
Year Ended October 31, 2018 | 13.79 | 0.05 | 0.88 | 0.93 | (0.06) | (1.33) | (1.39) | 13.33 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 19.03 | (0.02) | (3.99) | (4.01) | – | (4.37) | (4.37) | 10.65 |
Year Ended October 31, 2021 | 14.96 | (0.01) | 5.81 | 5.80 | – | (1.73) | (1.73) | 19.03 |
Year Ended October 31, 2020 | 13.93 | 0.01 | 2.35 | 2.36 | (0.04) | (1.29) | (1.33) | 14.96 |
Year Ended October 31, 2019 | 13.37 | 0.04 | 1.93 | 1.97 | (0.05) | (1.36) | (1.41) | 13.93 |
Year Ended October 31, 2018 | 13.82 | 0.06 | 0.89 | 0.95 | (0.07) | (1.33) | (1.40) | 13.37 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | Less than $0.005 per share. |
130 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(27.49%) | $ 222,190 | 1.19%(e) | 1.24%(e) | (0.43%) | 44.12% |
41.35% | 345,638 | 1.19% | 1.23% | (0.33%) | 111.07% |
17.50% | 264,977 | 1.19% | 1.26% | (0.24%) | 49.68% |
17.60% | 247,926 | 1.19% | 1.27% | 0.06% | 47.13% |
6.63% | 233,717 | 1.19%(e) | 1.25%(e) | 0.14% | 38.68% |
(27.96%) | 229 | 1.90%(e) | 2.08%(e) | (1.14%) | 44.12% |
40.20% | 329 | 1.90% | 2.07% | (1.01%) | 111.07% |
16.71% | 1,143 | 1.90% | 2.08% | (0.94%) | 49.68% |
16.75% | 1,428 | 1.90% | 2.11% | (0.58%) | 47.13% |
5.88% | 2,963 | 1.90%(e) | 2.07%(e) | (0.56%) | 38.68% |
(27.32%) | 106,068 | 0.97%(e) | 1.02%(e) | (0.20%) | 44.12% |
41.61% | 158,581 | 0.97% | 1.01% | (0.11%) | 111.07% |
17.79% | 121,611 | 0.97% | 1.04% | (0.01%) | 49.68% |
17.84% | 113,600 | 0.97% | 1.05% | 0.29% | 47.13% |
6.90% | 106,337 | 0.97%(e) | 1.03%(e) | 0.36% | 38.68% |
(27.29%) | 8,644 | 0.90%(e) | 1.01%(e) | (0.14%) | 44.12% |
41.77% | 14,953 | 0.90% | 1.00% | (0.05%) | 111.07% |
17.89% | 10,982 | 0.90% | 1.01% | 0.05% | 49.68% |
17.90% | 8,839 | 0.90% | 1.03% | 0.34% | 47.13% |
6.99% | 6,801 | 0.90%(e) | 1.01%(e) | 0.43% | 38.68% |
2022 Annual Report | 131 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $11.09 | $(0.04) | $(2.09) | $ (2.13) | $ – | $ (2.67) | $ (2.67) | $ 6.29 |
Year Ended October 31, 2021 | 8.08 | (0.04) | 4.06 | 4.02 | – | (1.01) | (1.01) | 11.09 |
Year Ended October 31, 2020 | 7.59 | (0.01) | 0.96 | 0.95 | –(h) | (0.46) | (0.46) | 8.08 |
Year Ended October 31, 2019 | 6.85 | 0.01 | 1.09 | 1.10 | – | (0.36) | (0.36) | 7.59 |
Year Ended October 31, 2018 | 8.52 | 0.02 | 0.62 | 0.64 | – | (2.31) | (2.31) | 6.85 |
Class R Shares | ||||||||
Year Ended October 31, 2022 | 9.54 | (0.06) | (1.78) | (1.84) | – | (2.32) | (2.32) | 5.38 |
Year Ended October 31, 2021 | 7.09 | (0.06) | 3.52 | 3.46 | – | (1.01) | (1.01) | 9.54 |
Year Ended October 31, 2020 | 6.73 | (0.03) | 0.85 | 0.82 | – | (0.46) | (0.46) | 7.09 |
Year Ended October 31, 2019 | 6.13 | (0.01) | 0.97 | 0.96 | – | (0.36) | (0.36) | 6.73 |
Year Ended October 31, 2018 | 7.88 | –(h) | 0.56 | 0.56 | – | (2.31) | (2.31) | 6.13 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 11.68 | (0.04) | (2.18) | (2.22) | – | (2.82) | (2.82) | 6.64 |
Year Ended October 31, 2021 | 8.45 | (0.03) | 4.27 | 4.24 | – | (1.01) | (1.01) | 11.68 |
Year Ended October 31, 2020 | 7.92 | –(h) | 1.00 | 1.00 | (0.01) | (0.46) | (0.47) | 8.45 |
Year Ended October 31, 2019 | 7.11 | 0.03 | 1.14 | 1.17 | – | (0.36) | (0.36) | 7.92 |
Year Ended October 31, 2018 | 8.75 | 0.04 | 0.63 | 0.67 | – | (2.31) | (2.31) | 7.11 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 12.21 | (0.02) | (2.31) | (2.33) | – | (2.91) | (2.91) | 6.97 |
Year Ended October 31, 2021 | 8.78 | (0.01) | 4.45 | 4.44 | – | (1.01) | (1.01) | 12.21 |
Year Ended October 31, 2020 | 8.20 | 0.01 | 1.04 | 1.05 | (0.01) | (0.46) | (0.47) | 8.78 |
Year Ended October 31, 2019 | 7.34 | 0.04 | 1.18 | 1.22 | – | (0.36) | (0.36) | 8.20 |
Year Ended October 31, 2018 | 8.95 | 0.05 | 0.65 | 0.70 | – | (2.31) | (2.31) | 7.34 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Dividend expense ratio includes broker related expenses for securities sold short. |
(e) | Indicates the dividend expense charged for the period to average net assets. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01% for Class A, Class C, Class R, Institutional Service Class and Institutional Class for the years ended October 31, 2021, October 31, 2020 and October 31, 2018. |
(h) | Less than $0.005 per share. |
132 | 2022 Annual Report |
Ratios/Supplemental Data | ||||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Dividend Expense (d)(e) | Portfolio Turnover (f) |
(25.40%) | $ 8,220 | 1.24% | 2.34% | (0.59%) | – | 55.89% |
53.27% | 10,032 | 1.22%(g) | 2.42%(g) | (0.45%) | – | 157.35% |
12.88% | 7,618 | 1.24%(g) | 2.13%(g) | (0.17%) | – | 45.98% |
17.62% | 8,481 | 1.25% | 2.09% | 0.20% | – | 54.04% |
8.32% | 7,466 | 1.32%(g) | 2.03%(g) | 0.34% | 0.04% | 112.97% |
(25.57%) | 2,286 | 1.56% | 2.67% | (0.91%) | – | 55.89% |
52.76% | 3,071 | 1.55%(g) | 2.75%(g) | (0.78%) | – | 157.35% |
12.54% | 1,952 | 1.43%(g) | 2.32%(g) | (0.37%) | – | 45.98% |
17.39% | 1,924 | 1.55% | 2.39% | (0.09%) | – | 54.04% |
7.89% | 1,895 | 1.69%(g) | 2.40%(g) | (0.04%) | 0.04% | 112.97% |
(25.16%) | 276 | 1.05% | 2.16% | (0.47%) | – | 55.89% |
53.56% | 159 | 1.05%(g) | 2.25%(g) | (0.33%) | – | 157.35% |
12.96% | 340 | 1.04%(g) | 1.93%(g) | 0.02% | – | 45.98% |
17.96% | 480 | 1.05% | 1.89% | 0.45% | – | 54.04% |
8.50% | 679 | 1.07%(g) | 1.79%(g) | 0.55% | 0.04% | 112.97% |
(25.17%) | 5,182 | 0.90% | 2.15% | (0.25%) | – | 55.89% |
53.85% | 5,531 | 0.90%(g) | 2.24%(g) | (0.12%) | – | 157.35% |
13.14% | 3,451 | 0.90%(g) | 1.94%(g) | 0.17% | – | 45.98% |
18.10% | 4,580 | 0.90% | 1.89% | 0.58% | – | 54.04% |
8.69% | 5,583 | 0.98%(g) | 1.83%(g) | 0.63% | 0.06% | 112.97% |
2022 Annual Report | 133 |
October 31, 2022
• | abrdn China A Share Equity Fund (formerly, Aberdeen China A Share Equity Fund) ("China A Share Equity Fund") |
• | abrdn Dynamic Dividend Fund (formerly, Aberdeen Dynamic Dividend Fund) (“Dynamic Dividend Fund”) |
• | abrdn Emerging Markets ex-China Fund (formerly, Aberdeen Global Equity Fund) (“Emerging Markets ex-China Fund”) |
• | abrdn Emerging Markets Fund (formerly, Aberdeen Emerging Markets Fund) (“Emerging Markets Fund”) |
• | abrdn Emerging Markets Sustainable Leaders Fund (formerly, Aberdeen Emerging Markets Sustainable Leaders Fund) (“Emerging Markets Sustainable Leaders Fund”) |
• | abrdn Global Equity Impact Fund (formerly, Aberdeen Global Equity Impact Fund) (“Global Equity Impact Fund”) |
• | abrdn Global Infrastructure Fund (formerly, Aberdeen Global Infrastructure Fund) (“Global Infrastructure Fund”) |
• | abrdn International Small Cap Fund (formerly, Aberdeen International Small Cap Fund) (“International Small Cap Fund”) |
• | abrdn International Sustainable Leaders Fund (formerly, Aberdeen International Sustainable Leaders Fund) (“International Sustainable Leaders Fund”) |
• | abrdn Realty Income & Growth Fund (formerly, Aberdeen Realty Income & Growth Fund) (“Realty Income & Growth Fund”) |
• | abrdn U.S. Small Cap Equity Fund (formerly, Aberdeen U.S. Small Cap Equity Fund) (“U.S. Small Cap Equity Fund”) |
• | abrdn U.S. Sustainable Leaders Fund (formerly, Aberdeen U.S. Sustainable Leaders Fund) (“U.S. Sustainable Leaders Fund”) |
• | abrdn U.S. Sustainable Leaders Smaller Companies Fund (formerly, Aberdeen U.S. Sustainable Leaders Smaller Companies Fund) (“U.S. Sustainable Leaders Smaller Companies Fund”) |
a. | Security Valuation: |
The Funds value their securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Funds' 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. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board of Trustees (the "Board") designated abrdn Inc. ("abrdn" or the "Adviser") as the valuation designee ("Valuation Designee") for the Funds to perform the fair value determinations relating to Fund investments for which market quotations are not readily available. | |
Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). 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. | |
In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to |
134 | 2022 Annual Report |
October 31, 2022
measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. Open-end mutual funds are valued at the respective net asset value (“NAV”) as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined to be a Level 1 investment. | |
Foreign equity securities that are traded on foreign exchanges that close prior to the 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. These valuation factors are used when pricing a Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time a 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. | |
Long-term debt and other fixed income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size, and the strategies employed by the Adviser as Valuation Designee generally trade in round lot sizes. In certain circumstances, fixed income securities may be held or transactions may be conducted in smaller, “odd lot” sizes. Odd lots may trade at lower or occasionally higher prices than institutional round lot trades. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost if it represents the best approximation for fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments. | |
Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. Each Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 NAV. Generally, these investment types are categorized as Level 1 investments. | |
Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Interest rate swaps agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). | |
In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Investment Adviser as Valuation Designee taking into account the relevant factors and surrounding circumstances using Valuation and Liquidity Procedures approved by the Board. A security that has been fair valued by the Investment Adviser may be classified as Level 2 or Level 3 depending on the nature of the inputs. | |
The three-level hierarchy of inputs is summarized below: |
• | Level 1 - quoted prices in active markets for identical investments; |
• | Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or |
• | Level 3 - significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments). |
2022 Annual Report | 135 |
October 31, 2022
Security Type | Standard Inputs |
Foreign equities utilizing a fair value factor | Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
China A Share Equity Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $243,347 | $30,154,994 | $– | $30,398,341 |
Exchange-Traded Funds | 151,636 | – | – | 151,636 |
Short-Term Investment | 380,882 | – | – | 380,882 |
Total Investments | $775,865 | $30,154,994 | $– | $30,930,859 |
Total Assets | $775,865 | $30,154,994 | $– | $30,930,859 |
Dynamic Dividend Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $64,861,310 | $31,217,329 | $– | $96,078,639 |
Preferred Stocks | – | 1,195,900 | – | 1,195,900 |
Short-Term Investment | 2,895,263 | – | – | 2,895,263 |
Total Investments | $67,756,573 | $32,413,229 | $– | $100,169,802 |
Total Assets | $67,756,573 | $32,413,229 | $– | $100,169,802 |
Liabilities | ||||
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $(37,478) | $– | $(37,478) |
Total Liabilities | $– | $(37,478) | $– | $(37,478) |
Emerging Markets ex-China Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $5,108,113 | $18,474,247 | $– | $23,582,360 |
Preferred Stocks | 428,342 | – | – | 428,342 |
Short-Term Investment | 610,605 | – | – | 610,605 |
Total Investments | $6,147,060 | $18,474,247 | $– | $24,621,307 |
Total Assets | $6,147,060 | $18,474,247 | $– | $24,621,307 |
136 | 2022 Annual Report |
October 31, 2022
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Emerging Markets Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $370,266,288 | $1,632,497,400 | $– | $2,002,763,688 |
Preferred Stocks | 40,692,722 | 135,475,080 | – | 176,167,802 |
Short-Term Investment | 71,047,744 | – | – | 71,047,744 |
Total Investments | $482,006,754 | $1,767,972,480 | $– | $2,249,979,234 |
Total Assets | $482,006,754 | $1,767,972,480 | $– | $2,249,979,234 |
Emerging Markets Sustainable Leaders Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $20,885,177 | $81,495,221 | $– | $102,380,398 |
Preferred Stocks | 2,085,645 | 7,432,297 | – | 9,517,942 |
Short-Term Investment | 1,312,096 | – | – | 1,312,096 |
Total Investments | $24,282,918 | $88,927,518 | $– | $113,210,436 |
Total Assets | $24,282,918 | $88,927,518 | $– | $113,210,436 |
Global Equity Impact Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $23,701,272 | $21,819,304 | $– | $45,520,576 |
Short-Term Investment | 161,466 | – | – | 161,466 |
Total Investments | $23,862,738 | $21,819,304 | $– | $45,682,042 |
Total Assets | $23,862,738 | $21,819,304 | $– | $45,682,042 |
Global Infrastructure Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $25,321,342 | $20,940,548 | $– | $46,261,890 |
Rights | 177 | – | – | 177 |
Short-Term Investment | 314,397 | – | – | 314,397 |
Total Investments | $25,635,916 | $20,940,548 | $– | $46,576,464 |
Total Assets | $25,635,916 | $20,940,548 | $– | $46,576,464 |
International Small Cap Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $44,748,837 | $129,484,454 | $– | $174,233,291 |
Preferred Stocks | – | 2,025,063 | – | 2,025,063 |
Short-Term Investment | 1,947,367 | – | – | 1,947,367 |
Total Investments | $46,696,204 | $131,509,517 | $– | $178,205,721 |
Total Assets | $46,696,204 | $131,509,517 | $– | $178,205,721 |
2022 Annual Report | 137 |
October 31, 2022
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
International Sustainable Leaders Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $8,491,860 | $70,894,794 | $– | $79,386,654 |
Short-Term Investment | 2,185,046 | – | – | 2,185,046 |
Total Investments | $10,676,906 | $70,894,794 | $– | $81,571,700 |
Total Assets | $10,676,906 | $70,894,794 | $– | $81,571,700 |
Realty Income & Growth Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $40,460,530 | $– | $– | $40,460,530 |
Short-Term Investment | 1,696,494 | – | – | 1,696,494 |
Total Investments | $42,157,024 | $– | $– | $42,157,024 |
Total Assets | $42,157,024 | $– | $– | $42,157,024 |
U.S. Small Cap Equity Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $720,471,609 | $– | $– | $720,471,609 |
Short-Term Investment | 6,336,367 | – | – | 6,336,367 |
Total Investments | $726,807,976 | $– | $– | $726,807,976 |
Total Assets | $726,807,976 | $– | $– | $726,807,976 |
U.S. Sustainable Leaders Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $324,733,669 | $– | $– | $324,733,669 |
Short-Term Investment | 12,528,695 | – | – | 12,528,695 |
Total Investments | $337,262,364 | $– | $– | $337,262,364 |
Total Assets | $337,262,364 | $– | $– | $337,262,364 |
U.S. Sustainable Leaders Smaller Companies Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $15,727,800 | $– | $– | $15,727,800 |
Short-Term Investment | 174,697 | – | – | 174,697 |
Total Investments | $15,902,497 | $– | $– | $15,902,497 |
Total Assets | $15,902,497 | $– | $– | $15,902,497 |
138 | 2022 Annual Report |
October 31, 2022
b. | Restricted Securities: |
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds 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 (the "1933 Act"). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Funds, 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. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies within the Statements of Operations. |
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. | Derivative Financial Instruments: |
Certain Funds are authorized to use derivatives to manage currency risk, credit risk, and interest rate risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under the contract. The use of derivative instruments involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of Assets and Liabilities. | |
Forward Foreign Currency Exchange Contracts | |
A forward foreign currency exchange contract (“forward contract”) involves an obligation to purchase and sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Forward contracts are used to manage a Funds' currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to the benchmark. The use of forward contracts allows the separation of decision-making between markets and their currencies. | |
The forward contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent pricing provider. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. These realized and unrealized gains and losses are reported on the Statement of Operations. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or from unanticipated movements in exchange rates. These realized and unrealized gains and losses are reported on the Statements of Operations. During the year October 31, 2022, the Funds used forward contracts for the purposes of efficient portfolio management and managing active currency risk relative to the benchmark, the latter of which involves both hedging currency risk and adding currency risk in excess of underlying bond positions. | |
While a Fund may enter into forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while a Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for a Fund than if it had not engaged in any such transactions. Moreover, there may be an imperfect correlation between a Fund’s portfolio holdings or securities quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent a Fund from achieving a complete hedge, which will expose the Fund to the risk of foreign exchange loss. |
2022 Annual Report | 139 |
October 31, 2022
Summary of Derivative Instruments | |
Certain Funds may use derivatives for various purposes as noted above. The following is a summary of the fair value of derivative instruments, not accounted for as hedging instruments, as of October 31, 2022: | |
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Dynamic Dividend Fund | ||||||
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $37,478 | $– | $– | $– | $37,478 |
Total | $– | $37,478 | $– | $– | $– | $37,478 |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | Gross Amounts Not Offset in the Statement of Assets and Liabilities | |||||||
Gross Amounts of Assets Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received(1) | Net Amount(2) | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged(1) | Net Amount(2) | |
Description | Assets | Liabilities | ||||||
Dynamic Dividend Fund | ||||||||
Foreign Currency Exchange Contracts(3) | ||||||||
Morgan Stanley & Co. | $– | $– | $– | $– | $37,478 | $– | $– | $37,478 |
(1) | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
(2) | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master netting agreement with the same legal entity. |
(3) | Includes financial instrument which are not subject to a master netting arrangement across funds, or another similar arrangement. |
140 | 2022 Annual Report |
October 31, 2022
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Dynamic Dividend Fund | ||||||
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Forward Currency Contracts | $– | $562,959 | $– | $– | $– | $562,959 |
Total | $– | $562,959 | $– | $– | $– | $562,959 |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Forward Currency Contracts | $– | $(35,464) | $– | $– | $– | $(35,464) |
Total | $– | $(35,464) | $– | $– | $– | $(35,464) |
Global Infrastructure Fund | ||||||
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Forward Currency Contracts | $– | $16,588 | $– | $– | $– | $16,588 |
Total | $– | $16,588 | $– | $– | $– | $16,588 |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Forward Currency Contracts | $– | $1,279 | $– | $– | $– | $1,279 |
Total | $– | $1,279 | $– | $– | $– | $1,279 |
Derivative | Average Notional Value |
Dynamic Dividend Fund | |
Foreign Currency Contracts Sold | $2,832,471 |
Global Infrastructure Fund | |
Foreign Currency Contracts Purchased | $403,621 |
Foreign Currency Contracts Sold | $1,531,174 |
f. | 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 and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as a Fund acquires information regarding such dividends or corporate actions. |
2022 Annual Report | 141 |
October 31, 2022
Interest income and expenses are recorded on an accrual basis. Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the relevant Funds based on net assets of each Fund as of month-end. For each of the Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses to a class is based on the average net asset value of that class’ shares in proportion to the average net assets of the relevant Fund when incurred. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class. |
g. | Distributions: |
Distributions from net investment income, if any, are declared and paid annually for all Funds except the Dynamic Dividend Fund, which declares and pays monthly, and the Global Infrastructure Fund and Realty Income & Growth Fund, which declare and pay quarterly. The Funds will also declare and pay distributions at least annually from net realized gains on investment transactions and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are recorded on the ex-dividend date. The Funds will also declare and pay distributions at least annually from net realized gains on investment transactions and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for foreign currencies and loss deferrals. |
h. | Federal Income Taxes: |
Each Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is required. Management of the Funds 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 Funds' U.S. federal and state tax returns for each of the most recent four fiscal years up to the most recent fiscal year ended October 31, 2022 are subject to such review. |
i. | Foreign Withholding Tax: |
Dividend and interest income from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes and are recorded on the Statement of Operations. The Funds file for tax reclaims for the refund of such withholdings taxes according to tax treaties. Tax reclaims that are deemed collectible are booked as tax reclaim receivable on the Statement of Assets and Liabilities. Foreign tax authorities can examine previously filed withholding tax reclaims for various periods of time, depending on the statute of limitations in each foreign jurisdiction. In some cases, amounts that have been refunded by foreign tax authorities and received by the Funds are still subject to such review. | |
In addition, the Funds may be subject to capital gains tax in certain countries in which they invest. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Funds accrue such taxes when the related income is earned. | |
In addition, when the Funds sell securities within certain countries in which they invest, the capital gains realized may be subject to tax. Based on these market requirements and as required under GAAP, the Funds accrue 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. | |
The Dynamic Dividend Fund has received requests from the German Federal Tax Office ("GTO") for additional documents and information relating to withholding tax refunds from 2009-2011 that the Fund has previously received and recorded. The tax refunds previously received amount to approximately 1.26% of the Dynamic Dividend Fund's net assets as of October 31, 2022. Of the 1.26%, 0.87% are contested by the GTO. The Dynamic Dividend Fund may be required to return all or certain amounts or pay a settlement in connection with the GTO request. Based on information available as of the date of this Annual report, an estimated repayment amount, at the full amount of the previously received refunds being contested, has been accrued as a liability and is reflected within the Dynamic Dividend Fund's net asset value, which impacts its performance. This amount is reflected in the accompanying statement of assets and liabilities as payable for foreign withholding taxes. Furthermore, upon final determination of the GTO, if the actual amount payable differs significantly from the amount currently accrued, and subject to the level of assets under management at the time of any subsequent adjustments, the Dynamic Dividend Fund's net asset value and performance may be materially impacted. The precise amount of the repayment remains uncertain as the matter remains unsettled with the GTO. | |
abrdn Global Equity Impact Fund (“GEI”) and abrdn International Sustainable Leaders Fund (“ISL”). The total return in the financial highlights reflects the receipt of the payment of Article 63 EU Tax Reclaims net of estimated taxes payable to the IRS on behalf of shareholders to the IRS. At the time of receipt, those payments, net of applicable tax, resulted in an increase in net assets approximately 3.1%, 0.3%, 0.9%, and |
142 | 2022 Annual Report |
October 31, 2022
2.1% in 2017, 2018, 2019 and 2022, respectively for GEI and an increase in net assets of approximately 5.4% 2.1%, 1.4% in 2017, 2019 and 2022, respectively for ISL, based upon the net asset value as of the date of receipt. Without these payments, GEI’s and ISL’s performance would have been lower during each respective period in which the refunds and/or interest was received or recognized under U.S. GAAP. Additionally, past returns would have been higher had each Predecessor Fund not originally paid the withholding taxes that relate to the Article 63 EU reclaims that have been returned. There can be no assurance that the Fund will receive additional Article 63 EU Tax Reclaim payments or maintain this level of performance in the future. | |
Consistent with U.S. GAAP accrual requirements, for uncertain tax positions, each fund recognizes Article 63 EU Tax Reclaims when uncertainty relating to these claims, including but not limited to resolution of administrative and judicial proceedings and likelihood of receipt, have been resolved. | |
In 2022, Article 63 EU Tax reclaims and interest, as applicable, were paid to each Fund related to French and Swedish dividend withholding tax. The net assets of GEI and ISL increased by 2.1% and 1.4%, respectively, based upon the net asset value as of the date of receipt. As of October 31, 2022, GEI and ISL have remaining Article 63 EU Tax Reclaims, primarily related to France, Germany, and Spain. During the year ended October 31, 2022, based upon evaluation of facts and circumstances related to the outstanding claims, the outstanding reclaims related to France and Spain were accrued as a receivable, and are reflected as Article 63 EU Tax Reclaims Receivable on the accompanying statements of assets and liabilities. Additionally, a payable to the IRS on behalf of shareholders related to Article 63 tax reclaims was accrued and is reflected on the accompanying statement of assets and liabilities. The net assets of GEI and ISL increased by 2.3% and 2.3%, respectively, based upon the net asset value as of the date of recognition. | |
Certain of the outstanding Article 63 EU Tax Reclaims related to Germany and Spain are not deemed to meet the recognition criteria under U.S. GAAP as of October 31, 2022, and have not been recorded in each fund’s respective net asset value. As of October 31, 2022, the total amount of outstanding reclaims (before the impact of interest or any tax or additional costs incurred in the pursuit of such reclaims) filed with Germany and Spain represents 3.4% and 3.0%, respectively, of net assets of GEI and ISL. These amounts net of estimated taxes represent 1.9% and 1.7%, respectively, of net assets of GEI and ISL. Recognition by the Fund of these amounts would have a positive impact on the Fund's performance. | |
The payments received on tax reclaims (including interest payments) within the year ended October 31, 2022 and from prior periods were as follows: | |
Amount | Percent of Net Assets as of Fiscal Period End | Received Date Range | |
Global Equity Impact Fund | |||
Withholding Tax Refunds Received from Country: | |||
Finland | $500,000 | 0.25%* | 5/21/2015 |
Poland | 4,400,193 | 4.68%** | 2/1/2017-2/24/2017 |
Poland | 380,000 | 0.59%*** | 8/22/2018 |
Poland | 1,011,000 | 1.62%**** | 2/12/2019-9/4/2019 |
Sweden | 150,447 | 0.32%***** | 6/1/2022 |
France | 1,920,555 | 4.14%***** | 6/15/2022 |
International Sustainable Leaders Fund | |||
Withholding Tax Refunds Received from Country: | |||
Finland | 1,355,000 | 0.35%* | 5/21/2015 |
Poland | 16,452,314 | 7.74%** | 12/16/2016-2/24/2017 |
Poland | 5,504,000 | 3.68%**** | 12/12/2018-9/4/2019 |
Sweden | 210,317 | 0.26%***** | 6/1/2022 |
France | 2,115,068 | 2.58%***** | 6/15/2022 |
* | As of October 31, 2015 |
** | As of October 31, 2017 |
*** | As of October 31, 2018 |
**** | As of October 31, 2019 |
***** | As of October 31, 2022 |
2022 Annual Report | 143 |
October 31, 2022
j. | Securities Lending |
Through an agreement with Securities Finance Trust Company as the Lending Agent and State Street Bank and Trust Company (the Funds’ custodian), the Funds may lend their portfolio securities to brokers, dealers and other financial institutions that pay a negotiated fee in order to generate additional income. The Funds receive non-cash collateral in the form of U.S. Government Securities, with respect to each loan of U.S. securities, typically equal to at least 102% of the value of the portfolio securities loaned, and, with respect to each loan of non-U.S. securities, typically equal to at least 105% of the value of the portfolio securities loaned, and at all times thereafter require the borrower to mark to market such collateral on a daily basis so that the market value of such collateral does not fall below 100% of the market value of the portfolio securities so loaned. | |
Income generated from securities lending includes the difference between (i) the sum of income received from the investment of collateral received from the borrowers that are counterparties to loans, loan fees received from loans, and fees paid by borrower on loans collateralized with collateral other than cash collateral; and ii) any rebate paid to a borrower, and any other allocable fees and expenses in connection with loans of securities. All income is accrued daily and is apportioned 90% to the Funds and 10% to the Lending Agent. | |
The Funds continue to own the loaned securities and continue to recognize unrealized gains and losses on the securities on loan. However, securities lending involves certain risks including the event of default or insolvency of the borrower and possible delays or restrictions upon a Fund’s ability to recover the loaned securities or dispose of the collateral for the loan. Securities on loan are noted within the Statement of Investments. Non-cash securities lending collateral held by the Lending Agent on behalf of the Funds cannot be sold or repledged by the Funds and, therefore, this amount is not presented on the Funds’ Statements of Investments. | |
At October 31, 2022, the Funds did not have any securities on loan. |
a. | Investment Adviser |
Under the Investment Advisory Agreement with the Trust, abrdn manages the Funds in accordance with the policies and procedures established by the Board. |
144 | 2022 Annual Report |
October 31, 2022
For services provided under the terms of the current Investment Advisory Agreement, each Fund pays the Adviser an annual management fee (as a percentage of its average daily net assets) paid monthly according to the following schedule: | |
Fund | Fee Schedule | |
China A Share Equity Fund | Up to $500 million | 0.850% |
$500 million up to $2 billion | 0.800% | |
On $2 billion and more | 0.750% | |
Dynamic Dividend Fund | Up to $250 million | 1.000% |
On $250 million and more | 0.950% | |
Emerging Markets ex-China Fund | Up to $500 million | 0.900% |
$500 million up to $2 billion | 0.850% | |
On $2 billion and more | 0.800% | |
Emerging Markets Fund | On all assets | 0.900% |
Emerging Markets Sustainable Leaders Fund | On all assets | 0.800% |
Global Equity Impact Fund | $0 up to $500 million | 0.750% |
$500 million up to $2 billion | 0.730% | |
$2 billion and more | 0.700% | |
Global Infrastructure Fund | Up to $250 million | 0.850% |
$250 million up to $750 million | 0.800% | |
$750 million to $1 billion | 0.750% | |
On $1 billion and more | 0.650% | |
International Small Cap Fund | Up to $100 million | 0.850% |
On $100 million and more | 0.750% | |
International Sustainable Leaders Fund | $0 up to $500 million | 0.750% |
$500 million up to $2 billion | 0.730% | |
$2 billion and more | 0.700% | |
Realty Income & Growth Fund | Up to $250 million | 1.000% |
$250 million up to $750 million | 0.950% | |
$750 million up to $1 billion | 0.900% | |
On $1 billion and more | 0.800% | |
U.S. Small Cap Equity Fund | Up to $100 million | 0.950% |
On $100 million and more | 0.800% | |
U.S. Sustainable Leaders Fund | Up to $500 million | 0.750% |
$500 million up to $2 billion | 0.700% | |
On $2 billion and more | 0.650% | |
U.S. Sustainable Leaders Smaller Companies Fund | Up to $500 million | 0.750% |
$500 million up to $2 billion | 0.700% | |
On $2 billion and more | 0.650% |
2022 Annual Report | 145 |
October 31, 2022
Fund | Limit |
China A Share Equity Fund | 0.99% |
Emerging Markets ex-China Fund | 1.10% |
Emerging Markets Fund | 1.10% |
Emerging Markets Sustainable Leaders Fund | 1.10% |
Global Equity Impact Fund | 0.90% |
International Small Cap Fund | 0.99% |
International Sustainable Leaders Fund | 0.90% |
U.S. Small Cap Equity Fund | 0.99% |
U.S. Sustainable Leaders Fund | 0.90% |
U.S. Sustainable Leaders Smaller Companies Fund | 0.90% |
Fund | Class A Limit | Institutional Class Limit |
Dynamic Dividend Fund | 1.50% | 1.25% |
Global Infrastructure Fund | 1.24% | 0.99% |
Realty Income & Growth Fund | 1.25% | 1.00% |
Fund | Amount Fiscal Year 2020 (Expires 10/31/23) | Amount Fiscal Year 2021 (Expires 10/31/24) | Amount Fiscal Year 2022 (Expires 10/31/25) | Total* |
China A Share Equity Fund | $194,764 | $244,894 | $299,918 | $739,576 |
Dynamic Dividend Fund | 114,147 | 180,278 | 104,327 | 398,752 |
Emerging Markets ex-China Fund | 173,186 | 191,740 | 183,875 | 548,801 |
Emerging Markets Fund | 2,887,668 | 1,800,053 | 3,610,371 | 8,298,092 |
Emerging Markets Sustainable Leaders Fund | 32,170 | 38,869 | 262,777 | 333,816 |
Global Equity Impact Fund | 288,816 | 240,122 | 300,400 | 829,338 |
Global Infrastructure Fund | 162,223 | 207,420 | 181,503 | 551,146 |
International Small Cap Fund | 291,518 | 261,986 | 386,527 | 940,031 |
International Sustainable Leaders Fund | 391,729 | 324,735 | 427,265 | 1,143,729 |
Realty Income & Growth Fund | 254,885 | 245,459 | 214,703 | 715,047 |
U.S. Small Cap Equity Fund | 327,286 | 604,829 | 573,835 | 1,505,950 |
U.S. Sustainable Leaders Fund | 257,392 | 216,967 | 209,581 | 683,940 |
U.S. Sustainable Leaders Smaller Companies Fund | 164,571 | 202,597 | 213,043 | 580,211 |
146 | 2022 Annual Report |
October 31, 2022
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
b. | Fund Administration |
Under the terms of the Fund Administration Agreement, abrdn provides various administrative and accounting services, including daily valuation of the Funds' shares, preparation of financial statements, tax returns, regulatory reports, and presentation of quarterly reports to the Board. For services provided pursuant to the Fund Administration Agreement, the Trust pays abrdn an annual fee of 0.08% based on the Trust’s average daily net assets. The fee is then allocated proportionately among all funds within the Trust (including the Funds) in relation to the average daily net assets of each fund. This asset-based fee is subject to an annual minimum fee based on the number of funds served. Pursuant to a sub-administration agreement with abrdn, State Street Bank and Trust Company ("State Street") provides sub-administration services with respect to the Funds. abrdn pays State Street for providing such services. |
c. | Distributor and Shareholder Servicing |
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares. | |
The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate the Distributor, for expenses associated with the distribution-related and/or shareholder services provided by such entities. These fees are paid to the Distributor and are either kept or paid to shareholders’ financial advisors or other intermediaries for distribution and shareholder services. Although actual distribution expenses may be more or less, under the Plan, the Funds pay the Distributor an annual fee of the following amounts, based on the total net assets of each, respective class: | |
Fund | Class A Shares | Class C Shares(a) | Class R Shares(a) |
China A Share Equity Fund | 0.25% | 1.00% | 0.50% |
Dynamic Dividend Fund | 0.25% | – | – |
Emerging Markets ex-China Fund | 0.25% | 1.00% | 0.50% |
Emerging Markets Fund | 0.25% | 1.00% | 0.50% |
Emerging Markets Sustainable Leaders Fund | 0.25% | 1.00% | 0.50% |
Global Equity Impact Fund | 0.25% | – | – |
Global Infrastructure Fund | 0.25% | – | – |
International Small Cap Fund | 0.25% | 1.00% | 0.50% |
International Sustainable Leaders Fund | 0.25% | – | – |
Realty Income & Growth Fund | 0.25% | – | – |
U.S. Small Cap Equity Fund | 0.25% | 1.00% | 0.50% |
U.S. Sustainable Leaders Fund | 0.25% | 1.00% | – |
U.S. Sustainable Leaders Smaller Companies Fund | 0.25% | – | 0.50% |
(a) | 0.25% of which is service fees. |
2022 Annual Report | 147 |
October 31, 2022
Fund | Commissions Retained from Front-End Sales Charges of Class A and Class A1 Shares | Commissions Retained from CDSC Fees of Class C (Certain Class A and Class A1) Shares |
China A Share Equity Fund | $34,192 | $876 |
Dynamic Dividend Fund | 3,864 | – |
Emerging Markets ex-China Fund | 3,195 | – |
Emerging Markets Fund | 1,847 | 422 |
Emerging Markets Sustainable Leaders Fund | 252 | 26 |
Global Equity Impact Fund | 16,285 | – |
Global Infrastructure Fund | 10,515 | – |
International Small Cap Fund | 2,273 | – |
International Sustainable Leaders Fund | 5,396 | – |
Realty Income & Growth Fund | – | – |
U.S. Small Cap Equity Fund | 60,624 | 2,986 |
U.S. Sustainable Leaders Fund | 5,157 | – |
U.S. Sustainable Leaders Smaller Companies Fund | 14,695 | 3,190 |
Total Retained | $158,295 | $ 7,500 |
d. | Administrative Services Fees/Transfer Agent Out-of-Pocket Expenses |
The Funds may pay and/or reimburse administrative services fees/sub-transfer agent expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds (sometimes referred to as “sub-transfer agency fees”), subject to certain limitations approved by the Board. These fees may be in addition to Rule 12b-1 fees. Sub-transfer agency fees generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services. | |
Class A, Class R and Institutional Service Class shares of the Funds pay for such services pursuant to an Administrative Services Plan adopted by the Board. Under the Administrative Services Plan, a Fund may pay a broker-dealer or other intermediary a maximum annual administrative services fee of 0.25% for Class A, Class R and Institutional Service Class shares. Under an amendment to the Administrative Services Plan that is in effect until at least February 28, 2023, the administrative service fee for a Fund is limited to a maximum of 0.15% for contracts with fees that are calculated as a percentage of Fund assets and a maximum of $16 per account for contracts with fees that are calculated on a dollar per account basis; however, many intermediaries do not charge the maximum permitted fee or even a portion thereof. Class C and Institutional Class shares may also pay for the services described above directly, as these classes are not subject to an Administrative Services Plan. | |
The aggregate amount of sub-transfer agent and administrative service fees paid during the fiscal year ended October 31, 2022 was as follows: | |
Fund | Class A | Class C | Class R | Institutional Service | Institutional |
China A Share Equity Fund | $12,961 | $1,703 | $4,110 | $743 | $23,667 |
Dynamic Dividend Fund | 3,798 | – | – | – | 73,092 |
Emerging Markets ex-China Fund | 21,234 | 355 | 1,777 | 270 | 875 |
Emerging Markets Fund | 211,678 | 5,605 | 169,987 | 753,671 | 2,517,328 |
Emerging Markets Sustainable Leaders Fund | 21,798 | 616 | 5,932 | 44,716 | 33,400 |
Global Equity Impact Fund | 42,258 | – | – | – | 24,158 |
Global Infrastructure Fund | 9,892 | – | – | – | 33,101 |
International Small Cap Fund | 86,585 | 709 | 3,125 | – | 192,105 |
International Sustainable Leaders Fund | 124,917 | – | – | – | 11,703 |
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Fund | Class A | Class C | Class R | Institutional Service | Institutional |
Realty Income & Growth Fund | $571 | $– | $– | $– | $34,940 |
U.S. Small Cap Equity Fund | 162,749 | 30,101 | 7,378 | 46,271 | 679,339 |
U.S. Sustainable Leaders Fund | 112,262 | 356 | – | 83,732 | 6,832 |
U.S. Sustainable Leaders Smaller Companies Fund | 8,151 | 353 | 4,159 | 525 | 7,745 |
e. | Purchase/Sale Transactions Between Affiliates |
The Funds are permitted to buy or sell securities with funds that have a common investment adviser (or investment advisers which are affiliates) under specific procedures which have been approved by the Board. The procedures are designed to satisfy the requirements of Rule 17a-7 of the Investment Company Act of 1940 (“Rule 17a-7”). During the fiscal year ended October 31, 2022, the Funds did not engage in any of these trades. |
Fund | Purchase | Sales |
China A Share Equity Fund | $13,843,941 | $41,193,067 |
Dynamic Dividend Fund | 88,737,657 | 89,030,360 |
Emerging Markets ex-China Fund | 34,746,534 | 33,594,864 |
Emerging Markets Fund | 1,267,607,288 | 2,395,284,766 |
Emerging Markets Sustainable Leaders Fund | 44,490,933 | 75,905,188 |
Global Equity Impact Fund | 21,445,303 | 30,825,223 |
Global Infrastructure Fund | 12,382,232 | 15,545,427 |
International Small Cap Fund | 141,310,632 | 118,261,527 |
International Sustainable Leaders Fund | 42,958,765 | 62,916,783 |
Realty Income & Growth Fund | 11,803,938 | 17,249,025 |
U.S. Small Cap Equity Fund | 534,022,728 | 690,747,905 |
U.S. Sustainable Leaders Fund | 178,613,313 | 227,375,026 |
U.S. Sustainable Leaders Smaller Companies Fund | 12,658,285 | 10,102,719 |
a. | Concentration Risk |
The Global Infrastructure Fund and Realty Income & Growth Fund are subject to concentration risk. Each Fund's strategy of concentrating in companies in a specific industry means that its performance will be closely tied to the performance of a particular market segment. Each Fund’s concentration in these companies may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. A downturn in these companies would have a larger impact on each Fund than on a mutual fund that does not concentrate in such companies. At times, the performance of these companies will lag the performance of other industries or the broader market as a whole. |
b. | 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 each Fund, the Adviser and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or lose operational functionality. |
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October 31, 2022
c. | Dividend Strategy Risk |
The Dynamic Dividend Fund and Realty Income & Growth Fund are subject to dividend strategy risk. There is no guarantee that the issuers of the stocks 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 stocks 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 stocks may not participate in a broad market advance to the same degree as other stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. The Fund may hold securities for short periods of time related to the dividend payment periods and may experience loss during these periods. |
d. | Emerging Markets Risk |
The risks of investing in emerging markets countries are a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below). |
e. | Equity Linked Notes |
The China A Share Equity Fund may invest in equity-linked notes, which are generally subject to the same risks as the foreign equity securities or the basket of foreign securities they are linked to. If the linked security(ies) declines in value, the note may return a lower amount at maturity. The trading price of an equity-linked note also depends on the value of the linked security(ies). |
f. | Equity Securities Risk |
The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions), to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry), or to the market as a whole (such as periods of market volatility or instability, or general and prolonged periods of economic decline). |
g. | Exchange-Traded Fund Risk |
To the extent that the China A Share Equity Fund invests in ETFs, the Fund may be subject to, among other risks, tracking error risk and passive and, in some cases, active management investment risk. An active secondary market in ETF shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance that an ETF’s shares will continue to be listed on an active exchange. In addition, Fund shareholders bear both their proportionate share of the Fund’s expenses and similar expenses incurred through the Fund’s ownership of the ETF. |
h. | Foreign Currency Exposure Risk |
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 a Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful. |
i. | Foreign Securities Risk |
Foreign countries in which a Fund may invest may have markets that are less liquid, less regulated and more volatile than U.S. markets. The value of a Fund’s investments may decline because of factors such as unfavorable or unsuccessful government actions, reduction of government or central bank support and political or financial instability. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund. | |
Asian Risk. Parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Asian region may lead to a lack of liquidity while some countries have restricted the flow of money in and out of the country. Some countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. To the extent a Fund invests heavily in Asian issuers, the Fund may be more volatile than a fund which is broadly diversified geographically. |
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China Risk. Concentrating investments in China and Hong Kong subjects the China A Shares Equity Fund to additional risks, and may make it significantly more volatile than geographically diverse mutual funds. Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, imposition of tariffs, limitations on repatriation and differing legal standards. 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 Chinese economy, which in turn could adversely affect the Fund’s investments. | |
China A Shares Risk. Trading in China A Shares through Stock Connect and the QFII Programs involves additional risks. Stock Connect is subject to a daily quota (the “Daily Quota”), which limits the maximum net purchases under Stock Connect each day and, as such, buy orders for China A Shares would be rejected once the Daily Quota is exceeded (although the Fund will be permitted to sell China A Shares regardless of the Daily Quota balance). Further, Stock Connect, which relies on the connectivity of the Shanghai or Shenzhen markets with Hong Kong, is subject to operational risk, regulations that are relatively untested and are subject to change, and extended market closures for holidays or otherwise. During an extended market closure, the Fund’s ability to trade in China A Shares will be impacted which may affect the Fund’s performance. The QFII Programs are subject to the risk that the Adviser may have its QFII Programs license revoked or restricted with respect to the Fund or the Fund may be impacted by the rules, restrictions and quota limitations connected to reliance on a QFII Programs license. | |
India Risk. The value of a Fund’s assets may be adversely affected by political, economic, social and religious factors, changes in Indian law or regulations and the status of India’s relations with other countries. In addition, the economy of India may differ favorably or unfavorably from the U.S. economy in such respects as the rate of growth of gross domestic product, the rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. The Indian government has exercised and continues to exercise significant influence over many aspects of the economy, and the number of public sector enterprises in India is substantial. Accordingly, Indian government actions in the future could have a significant effect on the Indian economy, which could affect private sector companies and a Fund, market conditions, and prices and yields of securities in a Fund’s portfolio. Economic growth in India is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, regulatory and foreign investment controls, the “reservation” of key products for small-scale industries and high fiscal deficits. Changes in economic policies, or lack of movement toward economic liberalization, could negatively affect the general business and economic conditions in India, which could in turn affect a Fund’s investments. The securities market in India is substantially smaller, less liquid and significantly more volatile than the securities market in the United States. The relatively small market capitalizations of, and trading values on, Indian stock exchanges may cause a Fund’s investments in securities listed on these exchanges to be comparatively less liquid and subject to greater price volatility than comparable U.S. investments. | |
Russia/Ukraine Risk. In February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat of wider spread hostilities could have a severe adverse effect on the region and global economies, including significant negative impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related events could have a significant impact on Fund performance and the value of the Funds’ investments. |
j. | Illiquid Securities Risk |
Illiquid securities are assets that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the asset. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. | |
The Adviser employs procedures and tests using third-party and internal data inputs that seek to assess and manage the liquidity of a Fund’s portfolio holdings. These procedures and tests take into account a Fund’s investment strategy and liquidity of portfolio investments during both normal and foreseeable stressed conditions, cash-flow projections during both normal and reasonably foreseeable stressed conditions, relevant market, trading and other factors, and monitor whether liquidity should be adjusted based on changed market conditions. These procedures and tests are designed to assist a Fund in determining its ability to meet redemption requests in various market conditions. In light of the dynamic nature of markets, there can be no assurance that these procedures and tests will enable a Fund to ensure that it has sufficient liquidity to meet redemption requests. |
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k. | Impact of Large Redemptions and Purchases of Fund Shares |
Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause a Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of a Fund and result in credit line borrowing fees and/or overdraft charges to a Fund until the sales of portfolio securities necessary to cover the redemption request settle. |
l. | Impact Investing Risk |
In implementing the Global Equity Impact Fund’s ESG (Environmental, Social and Governance) investment strategy, the Adviser may select or exclude securities of issuers in certain industries, sectors, regions or countries for reasons other than the issuer’s investment performance. For this reason, the Fund’s ESG strategy could cause it to perform differently compared to funds that do not have such strategy. ESG investing is qualitative and subjective by nature. In addition, the Fund may be required to sell a security when it might otherwise be disadvantageous for it to do so. In evaluating an issuer, the Adviser utilizes, in part, information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable, which could cause the Adviser to incorrectly assess an issuer’s business practices with respect to the environment, social responsibility and corporate governance. Securities of companies with ESG practices may shift into and out of favor depending on market and economic conditions. The definition of “impact investing” will vary according to an investor’s beliefs and values. There is no guarantee that the Adviser’s definition of impact investing, security selection criteria or investment judgment will reflect the beliefs or values of any particular investor. |
m. | Infrastructure-Related Investment Risk |
Because the Global Infrastructure Fund concentrates its investments in infrastructure-related entities, the Fund has greater exposure to the potential adverse economic, regulatory, political and other changes affecting such entities. Infrastructure related entities are subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, costs associated with environmental and other regulations, the effects of economic slowdown and 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. Additionally, infrastructure-related entities may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, service interruption due to environmental, operational or other mishaps and the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. |
n. | Issuer Risk |
The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. |
o. | LIBOR Risk |
The Funds are subject to the risk that potential changes related to the use of the London Interbank Offered Rate (“LIBOR”) could adversely affect financial instruments that reference LIBOR as a benchmark interest rate. While some instruments may contemplate a scenario when LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments provide for an alternative rate, and the effectiveness of replacement rates is uncertain. The potential abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR, especially those that do not have fallback provisions. |
p. | Management Risk |
Each Fund is subject to the risk that the Adviser or Subadviser (as applicable) may make poor security selections. The Adviser, Subadviser and their portfolio managers apply their own investment techniques and risk analyses in making investment decisions for a Fund and there can be no guarantee that these decisions will achieve the desired results for a Fund. In addition, the Adviser or Subadviser may select securities that underperform the relevant market or other funds with similar investment objectives and strategies. |
q. | Market Risk |
Deteriorating market conditions might cause a general weakness in the market that reduces the prices, or yield, of securities in that market. Developments in a particular class of bonds or the stock market could also adversely affect a Fund by reducing the relative attractiveness of bonds or stocks as an investment. Also, to the extent that a Fund emphasizes bonds or stocks from any given industry, it could be hurt if that industry does not do well. Additionally, a Fund could lose value if the individual stocks in which it maintains long positions and/or the overall stock markets on which the stocks trade decline in price. In addition, a Fund that engages in short sales could lose value if the individual |
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stocks which they sell short increase in price. Stocks and stock markets may experience short-term volatility (price fluctuation) as well as extended periods of price decline or increase. Individual stocks are affected by many factors, including: |
• | corporate earnings; |
• | production; |
• | management; |
• | sales; and |
• | market trends, including investor demand for a particular type of stock, such as growth or value stocks, small or large stocks, or stocks within a particular industry. |
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r. | Mid-Cap Securities Risk |
Securities of medium-sized companies tend to be more volatile and less liquid than securities of larger companies. |
s. | Non-Diversified Fund Risk |
The Realty Income & Growth Fund's performance may be more volatile than a diversified fund because it may invest a greater percentage of its total assets in the securities of a single issuer. |
t. | Non-U.S. Taxation Risk |
Income, proceeds and gains received by a Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries, which will reduce the return on those investments. Tax treaties between certain countries and the United States may reduce or eliminate such taxes. | |
If, at the close of its taxable year, more than 50% of the value of a Fund’s total assets consists of securities of foreign corporations, including for this purpose foreign governments, the Fund will be permitted to make an election under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case, shareholders will include in gross income from foreign sources their pro rata shares of such taxes. A shareholder’s ability to claim an offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain limitations imposed by the Code, which may result in the shareholder’s not receiving a full credit or deduction (if any) for the amount of such taxes. Shareholders who do not itemize on their U.S. federal income tax returns may claim a credit (but not a deduction) for such foreign taxes. If a Fund does not qualify for or chooses not to make such an election, shareholders will not be entitled separately to claim a credit or deduction for U.S. federal income tax purposes with respect to foreign taxes paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund’s taxable income. Even if a Fund elects to pass through to its shareholders foreign tax credits or deductions, tax-exempt shareholders and those who invest in the Fund through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction. |
u. | Portfolio Turnover Risk |
The Dynamic Dividend Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. High portfolio turnover may result in greater transaction costs which may reduce Fund performance. The sale of Fund portfolio securities may also result in greater realization and/or distribution to shareholders of gains or losses as compared to a Fund with less active trading, which may include short-term gains taxable at ordinary income tax rates. |
v. | Qualified Dividend Income Tax Risk |
With respect to the Dynamic Dividend Fund, no assurance can be given as to what percentage of the distributions paid on shares, if any, will consist of tax-advantaged qualified dividend income or long-term capital gains or what the tax rates on various types of income will be in future years. The favorable U.S. federal tax treatment may be adversely affected, changed or repealed by future changes in tax laws at any time. In addition, it may be difficult to obtain information regarding whether distributions by non-U.S. entities in which a Fund invests should be regarded as qualified dividend income. Furthermore, to receive qualified dividend income treatment, a Fund must meet holding period and other requirements with respect to the dividend paying securities in its portfolio, and the shareholder must meet holding period and other requirements with respect to the common shares of a Fund. |
w. | REIT and Real Estate Risk |
Investment in real estate investment trusts ("REITs") and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include: declines in the value of real estate; risks related to local economic conditions, overbuilding and increased competition; increases in property taxes and operating expenses; changes in zoning laws; casualty or condemnation losses; variations in rental income, neighborhood values or the appeal of properties to tenants; changes in interest rates and changes in general economic and market conditions. REITs’ share prices may decline because of adverse developments affecting the real estate industry including changes in interest rates. The returns from REITs may trail returns from the overall market. Additionally, there is always a risk that a given REIT will fail to qualify for favorable tax treatment. REITs may be leveraged, which increases risk. Certain REITs charge management fees, which may result in layering the management fee paid by the fund. |
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x. | Sector Risk |
To the extent that a 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. | |
Financials Sector Risk. To the extent that the financials sector represents a significant portion of the Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, decreased liquidity in credit markets as well as cyber-attacks. | |
Healthcare Sector Risk. To the extent that the healthcare sector represents a significant portion of the Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Healthcare-related companies may be smaller and less seasoned than companies in other sectors, and performance of companies in the healthcare sector may be adversely impacted by many factors, including, among others, government regulation. restrictions on government reimbursement for medical expenses, changes to the costs of medical products and services, pricing pressure, increased emphasis on outpatient services, a limited number of products, industry innovation, changes in technologies, and other market developments. Many healthcare-related companies are dependent on patent protection, and, therefore, the expiration of patents may adversely affect the profitability of healthcare-related companies. | |
Industrials Sector Risk. To the extent that the industrial sector represents a significant portion of a Fund’s holdings, the Fund will be sensitive to changes in, and its performance may be adversely impacted by issues impacting this sector. 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. | |
Information Technology Sector Risk. To the extent that the information technology sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on their profit margins. Like other technology companies, information technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face obsolescence due to rapid technological developments, frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Companies in the information technology sector are heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies. |
y. | Small-Cap Securities Risk |
Securities of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk. |
z. | Sustainable Investing Risk |
A Fund’s “Sustainable Leaders” strategy could cause it to perform differently compared to funds that do not have such strategy. ESG considerations may be linked to long-term rather than short-term returns. The criteria related to a Fund’s Sustainable Leaders strategy ,including the exclusion of securities of companies that engage in certain business activities, may result in the Fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for ESG reasons when it might be otherwise disadvantageous for it to do so. In addition, there is a risk that the companies identified as sustainable leaders by the Adviser do not operate as expected when addressing ESG issues. There are significant differences in interpretations of what it means for a company to have positive ESG characteristics. While the Adviser believes its definitions are reasonable, the portfolio decisions it makes may differ with other investors’ or advisers’ views. |
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October 31, 2022
aa. | Valuation Risk |
The price that a 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 received upon the sale of an investment may be less than the value ascribed by a Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A 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. | |
Please read the Funds' prospectus for more detailed information regarding these and other risks. |
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |
China A Share Equity Fund | $50,509,722 | $146,974 | $(19,725,837) | $(19,578,863) |
Dynamic Dividend Fund | 93,145,274 | 21,344,022 | (14,319,494) | 7,024,528 |
Emerging Markets ex-China Fund | 27,453,005 | 1,101,855 | (3,985,309) | (2,883,454) |
Emerging Markets Fund | 2,665,272,117 | 201,992,293 | (617,285,176) | (415,292,883) |
Emerging Markets Sustainable Leaders Fund | 162,157,910 | 5,372,256 | (54,319,730) | (48,947,474) |
Global Equity Impact Fund | 45,728,335 | 6,684,237 | (6,730,530) | (46,293) |
Global Infrastructure Fund | 43,296,788 | 7,338,377 | (4,058,701) | 3,279,676 |
International Small Cap Fund | 222,205,517 | 7,821,962 | (51,821,758) | (43,999,796) |
International Sustainable Leaders Fund | 107,914,582 | 2,210,541 | (28,553,423) | (26,342,882) |
Realty Income & Growth Fund | 35,866,951 | 8,365,439 | (2,075,366) | 6,290,073 |
U.S. Small Cap Equity Fund | 809,627,617 | 62,360,993 | (145,180,634) | (82,819,641) |
U.S. Sustainable Leaders Fund | 355,776,258 | 38,050,007 | (56,563,901) | (18,513,894) |
U.S. Sustainable Leaders Smaller Companies Fund | 18,058,640 | 1,114,026 | (3,270,169) | (2,156,143) |
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Distributions paid from | ||||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Return of Capital | Total Distributions Paid |
China A Share Equity Fund | $42,904 | $2,210,774 | $2,253,678 | $– | $– | $2,253,678 |
Dynamic Dividend Fund | 5,854,531 | 656,823 | 6,511,354 | – | 162,968 | 6,674,322 |
Emerging Markets ex-China Fund | – | 3,260,752 | 3,260,752 | – | – | 3,260,752 |
Emerging Markets Fund | 75,550,719 | 390,351,786 | 465,902,505 | – | – | 465,902,505 |
Emerging Markets Sustainable Leaders Fund | 8,918,774 | 31,005,272 | 39,924,046 | – | – | 39,924,046 |
Global Equity Impact Fund | 33,169 | – | 33,169 | – | – | 33,169 |
Global Infrastructure Fund | 1,233,841 | 1,170,468 | 2,404,309 | – | – | 2,404,309 |
International Small Cap Fund | 3,632,385 | 18,234,244 | 21,866,629 | – | – | 21,866,629 |
International Sustainable Leaders Fund | – | – | – | – | – | – |
Realty Income & Growth Fund | 1,665,695 | 6,716,910 | 8,382,605 | – | – | 8,382,605 |
U.S. Small Cap Equity Fund | 92,274,229 | 130,736,310 | 223,010,539 | – | – | 223,010,539 |
U.S. Sustainable Leaders Fund | 46,765,062 | 79,716,902 | 126,481,964 | – | – | 126,481,964 |
U.S. Sustainable Leaders Smaller Companies Fund | 2,795,644 | 2,444,562 | 5,240,206 | – | – | 5,240,206 |
Distributions paid from | |||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid |
China A Share Equity Fund | $53,382 | $463,245 | $516,627 | $– | $516,627 |
Dynamic Dividend Fund | 6,553,325 | – | 6,553,325 | – | 6,553,325 |
Emerging Markets ex-China Fund | – | – | – | – | – |
Emerging Markets Fund | 8,787,598 | 33,395,606 | 42,183,204 | – | 42,183,204 |
Emerging Markets Sustainable Leaders Fund | 454,746 | – | 454,746 | – | 454,746 |
Global Equity Impact Fund | 354,407 | – | 354,407 | – | 354,407 |
Global Infrastructure Fund | 1,653,806 | 39,441 | 1,693,247 | – | 1,693,247 |
International Small Cap Fund | – | – | – | – | – |
International Sustainable Leaders Fund | 931,262 | – | 931,262 | – | 931,262 |
Realty Income & Growth Fund | 614,019 | 5,677,170 | 6,291,189 | – | 6,291,189 |
U.S. Small Cap Equity Fund | 7,615,912 | 41,783,512 | 49,399,424 | – | 49,399,424 |
U.S. Sustainable Leaders Fund | 11,862,382 | 36,364,159 | 48,226,541 | – | 48,226,541 |
U.S. Sustainable Leaders Smaller Companies Fund | 169,299 | 1,648,863 | 1,818,162 | – | 1,818,162 |
2022 Annual Report | 157 |
October 31, 2022
Fund | Undistributed Tax Exempt Income | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Distributions Payable | Late Year Ordinary and Post-October Capital Loss Deferrals | Other Temporary Differences | Unrealized Appreciation/ (Depreciation)* | Accumulated Capital and Other Losses** | Total Accumulated Earnings/ (Deficit) |
China A Share Equity Fund | $– | $– | $– | $– | $– | $– | $– | $(19,578,864) | $(8,558,990) | $(28,137,854) |
Dynamic Dividend Fund | $– | $– | $– | $– | $– | $– | $– | $7,076,503 | $– | 7,076,503 |
Emerging Markets ex-China Fund | – | 145,461 | 5,716,302 | – | – | – | – | (2,885,060) | (3,750,615) | (773,912) |
Emerging Markets Fund | – | 37,064,337 | – | – | – | – | – | (425,070,895) | (33,371,243) | (421,377,801) |
Emerging Markets Sustainable Leaders Fund | – | 1,214,037 | – | – | – | – | – | (49,235,175) | (9,278,411) | (57,299,549) |
Global Equity Impact Fund | – | 2,319,140 | – | – | – | – | 501,484 | 15,103 | (13,244,102) | (10,408,375) |
Global Infrastructure Fund | – | – | 865,590 | – | – | – | – | 3,278,380 | – | 4,143,970 |
International Small Cap Fund | – | 3,165,365 | – | – | – | – | – | (44,095,948) | (24,510,835) | (65,441,418) |
International Sustainable Leaders Fund | – | 5,102,324 | – | – | – | – | 139,366 | (26,237,572) | (401,754,636) | (422,750,518) |
Realty Income & Growth Fund | – | 68,156 | 2,476,600 | – | – | – | – | 6,290,074 | – | 8,834,830 |
U.S. Small Cap Equity Fund | – | – | 34,980,497 | – | – | (2,905,843) | – | (82,819,641) | – | (50,744,987) |
U.S. Sustainable Leaders Fund | – | 1,407,046 | – | – | – | – | – | (18,513,895) | – | (17,106,849) |
U.S. Sustainable Leaders Smaller Companies Fund | – | – | – | – | – | (72,917) | – | (2,156,104) | (309,339) | (2,538,360) |
* | The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable to tax deferral of losses on wash sales. |
** | As of October 31, 2022, for Federal income tax purposes, these Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the Treasury regulations, with no expiration. |
Fund | Amounts | Expires |
China A Share Equity Fund | $1,712,837 | Unlimited (Short-Term) |
China A Share Equity Fund | 6,846,153 | Unlimited (Long-Term) |
Emerging Markets ex-China Fund | 3,750,615 | Unlimited (Long-Term) |
Emerging Markets Fund | 33,371,243 | Unlimited (Short-Term) |
Emerging Markets Sustainable Leaders Fund | 5,587,778 | Unlimited (Short-Term) |
Emerging Markets Sustainable Leaders Fund | 3,690,633 | Unlimited (Long-Term) |
Global Equity Impact Fund | 834,340 | Unlimited (Short-Term) |
Global Equity Impact Fund | 12,409,762 | Unlimited (Long-Term) |
International Small Cap Fund | 24,510,835 | Unlimited (Short-Term) |
International Sustainable Leaders Fund | 8,796,709 | Unlimited (Short-Term) |
158 | 2022 Annual Report |
October 31, 2022
Fund | Amounts | Expires |
International Sustainable Leaders Fund | $392,957,927 | Unlimited (Long-Term) |
U.S. Sustainable Leaders Smaller Companies Fund | 132,648 | Unlimited (Short-Term) |
U.S. Sustainable Leaders Smaller Companies Fund | 176,691 | Unlimited (Long-Term) |
Fund | Paid-in Capital | Distributable Earnings/ (Accumulated Loss) |
China A Share Equity Fund | $(108,688) | $108,688 |
Emerging Markets ex-China Fund | 149,952 | (149,952) |
Global Equity Impact Fund | (1,427,277) | 1,427,277 |
Global Infrastructure Fund | 20,663 | (20,663) |
International Sustainable Leaders Fund | (4,038,782) | 4,038,782 |
Realty Income & Growth Fund | 149,305 | (149,305) |
U.S. Small Cap Equity Fund | 3,665,657 | (3,665,657) |
U.S. Sustainable Leaders Fund | 60,887 | (60,887) |
U.S. Sustainable Leaders Smaller Companies Fund | (22,038) | 22,038 |
Fund | Record Ownership % | Number of Account Owners |
China A Share Equity Fund | 54.5% | 4 |
Dynamic Dividend Fund | 51.5 | 5 |
Emerging Markets ex-China Fund | 33.3 | 2 |
Emerging Markets Fund | 67.9 | 5 |
Emerging Markets Sustainable Leaders Fund | 46.2 | 3 |
Global Equity Impact Fund | 26.1 | 3 |
Global Infrastructure Fund | 54.1 | 4 |
International Small Cap Fund | 63.0 | 3 |
International Sustainable Leaders Fund | 51.4 | 2 |
Realty Income & Growth Fund | 53.4 | 3 |
U.S. Small Cap Equity Fund | 42.3 | 5 |
U.S. Sustainable Leaders Fund | 11.9 | 1 |
U.S. Sustainable Leaders Smaller Companies Fund | 37.5 | 4 |
2022 Annual Report | 159 |
October 31, 2022
Fund | Average Outstanding Daily Balance | Average Weighted Interest Rate | Days Utilized |
China A Share Equity Fund | 547,143 | 2.33% | 16 |
Dynamic Dividend Fund | 375,000 | 1.68% | 3 |
Emerging Markets ex-China Fund | 2,850,000 | 1.43% | 1 |
Emerging Markets Fund | 49,927,261 | 1.62% | 16 |
Emerging Markets Sustainable Leaders Fund | 2,992,690 | 1.43% | 12 |
Global Equity Impact Fund | 442,116 | 1.43% | 8 |
Global Infrastructure Fund | 200,000 | 1.68% | 3 |
International Small Cap Fund | 4,894,614 | 3.00% | 17 |
International Sustainable Leaders Fund | 575,000 | 2.55% | 2 |
Realty Income & Growth Fund | 187,399 | 2.88% | 28 |
U.S. Small Cap Equity Fund | 9,587,500 | 1.96% | 8 |
U.S. Sustainable Leaders Fund | 2,450,000 | 1.43% | 4 |
160 | 2022 Annual Report |
abrdn Funds:
December 29, 2022
2022 Annual Report | 161 |
162 | 2022 Annual Report |
Fund | Qualified Dividend Income |
Dynamic Dividend Fund | 66.61% |
Emerging Markets ex-China Fund | 30.41% |
Emerging Markets Fund | 100.00% |
Emerging Markets Sustainable Leaders Fund | 10.89% |
Global Equity Impact Fund | 100.00% |
Global Infrastructure Fund | 66.53% |
International Small Cap Fund | 18.11% |
U.S. Small Cap Equity Fund | 1.19% |
U.S. Sustainable Leaders Fund | 1.33% |
U.S. Sustainable Leaders Smaller Companies Fund | 0.98% |
Fund | Dividends Received Deduction |
Dynamic Dividend Fund | 19.88% |
Emerging Markets ex-China Fund | 18.79% |
Global Equity Impact Fund | 100.00% |
Global Infrastructure Fund | 32.15% |
U.S. Sustainable Leaders Fund | 32.45% |
Fund | Foreign Tax |
Emerging Markets ex-China Fund | $0.0331 |
Emerging Markets Sustainable Leaders Fund | $0.0392 |
Global Equity Impact Fund | $0.0199 |
International Small Cap Fund | $0.0629 |
Fund | Amount |
China A Share Equity Fund | $2,210,774 |
Dynamic Dividend Fund | $656,823 |
Emerging Markets ex-China Fund | $3,405,360 |
Emerging Markets Fund | $390,351,786 |
Emerging Markets Sustainable Leaders Fund | $31,005,272 |
Global Infrastructure Fund | $1,181,706 |
International Small Cap Fund | $18,234,244 |
Realty Income & Growth Fund | $6,886,293 |
U.S. Small Cap Equity Fund | $135,246,704 |
U.S. Sustainable Leaders Fund | $79,716,902 |
U.S. Sustainable Leaders Smaller Companies Fund | $2,444,562 |
2022 Annual Report | 163 |
Beginning Account Value, May 1, 2022 | Actual Ending Account Value, October 31, 2022 | Hypothetical Ending Account Value | Actual Expenses Paid During Period1 | Hypothetical Expenses Paid During Period12 | Annualized Expense Ratio** | ||
China A Share Equity Fund | Class A | $ 1,000.00 | $ 837.90 | $ 1,018.45 | $ 6.21 | $ 6.82 | 1.34% |
Class C | $ 1,000.00 | $ 835.00 | $ 1,015.12 | $ 9.25 | $ 10.16 | 2.00% | |
Class R | $ 1,000.00 | $ 836.70 | $ 1,017.19 | $ 7.36 | $ 8.08 | 1.59% | |
Institutional Service Class | $ 1,000.00 | $ 838.60 | $ 1,019.56 | $ 5.19 | $ 5.70 | 1.12% | |
Institutional Class | $ 1,000.00 | $ 839.10 | $ 1,020.22 | $ 4.59 | $ 5.04 | 0.99% | |
Dynamic Dividend Fund3 | Class A | $ 1,000.00 | $ 913.00 | $ 1,026.82 | $ (1.54) | $ (1.63) | (0.32)% |
Institutional Class | $ 1,000.00 | $ 914.20 | $ 1,028.18 | $ (2.85) | $ (3.02) | (0.59)% | |
Emerging Markets ex-China Fund | Class A | $ 1,000.00 | $ 910.30 | $ 1,017.90 | $ 6.98 | $ 7.38 | 1.45% |
Class C | $ 1,000.00 | $ 907.20 | $ 1,014.62 | $ 10.10 | $ 10.66 | 2.10% | |
Class R | $ 1,000.00 | $ 908.30 | $ 1,015.88 | $ 8.90 | $ 9.40 | 1.85% | |
Institutional Service Class | $ 1,000.00 | $ 911.40 | $ 1,019.21 | $ 5.73 | $ 6.06 | 1.19% | |
Institutional Class | $ 1,000.00 | $ 911.70 | $ 1,019.71 | $ 5.25 | $ 5.55 | 1.09% | |
Emerging Markets Fund | Class A | $ 1,000.00 | $ 835.60 | $ 1,017.04 | $ 7.50 | $ 8.24 | 1.62% |
Class C | $ 1,000.00 | $ 834.50 | $ 1,014.57 | $ 9.76 | $ 10.71 | 2.11% | |
Class R | $ 1,000.00 | $ 835.30 | $ 1,016.33 | $ 8.14 | $ 8.94 | 1.76% | |
Institutional Service Class | $ 1,000.00 | $ 837.50 | $ 1,018.85 | $ 5.84 | $ 6.41 | 1.26% | |
Institutional Class | $ 1,000.00 | $ 838.20 | $ 1,019.66 | $ 5.10 | $ 5.60 | 1.10% | |
Emerging Markets Sustainable Leaders Fund | Class A | $ 1,000.00 | $ 846.20 | $ 1,017.75 | $ 6.89 | $ 7.53 | 1.48% |
Class C | $ 1,000.00 | $ 843.40 | $ 1,014.57 | $ 9.80 | $ 10.71 | 2.11% | |
Class R | $ 1,000.00 | $ 845.10 | $ 1,016.48 | $ 8.05 | $ 8.79 | 1.73% | |
Institutional Service Class | $ 1,000.00 | $ 847.10 | $ 1,019.36 | $ 5.40 | $ 5.90 | 1.16% | |
Institutional Class | $ 1,000.00 | $ 847.20 | $ 1,019.66 | $ 5.12 | $ 5.60 | 1.10% | |
Global Equity Impact Fund3 | Class A | $ 1,000.00 | $ 917.10 | $ 1,077.58 | $ (50.21) | $ (54.41) | (10.39)% |
Institutional Class | $ 1,000.00 | $ 918.10 | $ 1,078.84 | $ (51.44) | $ (55.75) | (10.64)% | |
Global Infrastructure Fund | Class A | $ 1,000.00 | $ 903.10 | $ 1,018.96 | $ 5.95 | $ 6.31 | 1.24% |
Institutional Class | $ 1,000.00 | $ 904.40 | $ 1,020.22 | $ 4.75 | $ 5.04 | 0.99% |
164 | 2022 Annual Report |
Beginning Account Value, May 1, 2022 | Actual Ending Account Value, October 31, 2022 | Hypothetical Ending Account Value | Actual Expenses Paid During Period1 | Hypothetical Expenses Paid During Period12 | Annualized Expense Ratio** | ||
International Small Cap Fund | Class A | $ 1,000.00 | $ 834.40 | $ 1,018.40 | $ 6.24 | $ 6.87 | 1.35% |
Class C | $ 1,000.00 | $ 831.60 | $ 1,015.12 | $ 9.23 | $ 10.16 | 2.00% | |
Class R | $ 1,000.00 | $ 833.10 | $ 1,016.89 | $ 7.62 | $ 8.39 | 1.65% | |
Institutional Class | $ 1,000.00 | $ 835.80 | $ 1,020.16 | $ 4.63 | $ 5.09 | 1.00% | |
International Sustainable Leaders Fund3 | Class A | $ 1,000.00 | $ 881.70 | $ 1,074.56 | $ (46.43) | $ (51.19) | (9.79)% |
Institutional Class | $ 1,000.00 | $ 882.90 | $ 1,075.52 | $ (47.36) | $ (52.21) | (9.98)% | |
Realty Income & Growth Fund | Class A | $ 1,000.00 | $ 819.50 | $ 1,018.85 | $ 5.78 | $ 6.41 | 1.26% |
Institutional Class | $ 1,000.00 | $ 821.00 | $ 1,020.16 | $ 4.59 | $ 5.09 | 1.00% | |
U.S. Small Cap Equity Fund | Class A | $ 1,000.00 | $ 976.40 | $ 1,018.35 | $ 6.77 | $ 6.92 | 1.36% |
Class C | $ 1,000.00 | $ 973.70 | $ 1,015.17 | $ 9.90 | $ 10.11 | 1.99% | |
Class R | $ 1,000.00 | $ 975.20 | $ 1,016.79 | $ 8.31 | $ 8.49 | 1.67% | |
Institutional Service Class | $ 1,000.00 | $ 977.70 | $ 1,019.61 | $ 5.53 | $ 5.65 | 1.11% | |
Institutional Class | $ 1,000.00 | $ 978.40 | $ 1,020.22 | $ 4.94 | $ 5.04 | 0.99% | |
U.S. Sustainable Leaders Fund | Class A | $ 1,000.00 | $ 888.30 | $ 1,019.21 | $ 5.66 | $ 6.06 | 1.19% |
Class C | $ 1,000.00 | $ 886.00 | $ 1,015.63 | $ 9.03 | $ 9.65 | 1.90% | |
Institutional Service Class | $ 1,000.00 | $ 889.60 | $ 1,020.37 | $ 4.57 | $ 4.89 | 0.96% | |
Institutional Class | $ 1,000.00 | $ 890.50 | $ 1,020.67 | $ 4.29 | $ 4.58 | 0.90% | |
U.S. Sustainable Leaders Smaller Companies Fund | Class A | $ 1,000.00 | $ 963.20 | $ 1,018.90 | $ 6.19 | $ 6.36 | 1.25% |
Class R | $ 1,000.00 | $ 962.40 | $ 1,017.29 | $ 7.77 | $ 7.98 | 1.57% | |
Institutional Service Class | $ 1,000.00 | $ 965.10 | $ 1,019.66 | $ 5.45 | $ 5.60 | 1.10% | |
Institutional Class | $ 1,000.00 | $ 965.40 | $ 1,020.67 | $ 4.46 | $ 4.58 | 0.90% |
** | The expense ratio presented represents a six-month, annualized ratio. |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). |
2 | Represents the hypothetical 5% return before expenses. |
3 | Uncertain taxes and costs associated with Article 63 EU Tax Reclaims are not included in the expense table above for Dynamic Dividend Fund, Global Equity Impact Fund and International Sustainable Leaders Fund. In addition to the operating expenses shown in the table above and based on the information available as of the date of this Report, the Fund has accrued an estimated tax expense for the potential taxes and costs of the Article 63 EU Tax Reclaims, which is not included in the table above. If these taxes and costs were included in the table above, the annualized expense ratio and actual expenses paid would materially increase. |
2022 Annual Report | 165 |
166 | 2022 Annual Report |
2022 Annual Report | 167 |
• | whether the Funds have operated in accordance with their investment objectives as well as the Funds’ record of compliance with their investment restrictions, and the compliance programs of the Trust and AI. The Trustees also considered the compliance-related resources AI and its affiliates were providing to the Funds. |
• | the nature, quality, cost and extent of administrative services performed by AI under the Advisory Agreement and under a separate agreement covering administrative services. |
• | the effect of any market and economic volatility on the performance, asset levels and expense ratios of the Funds. |
• | so-called “fallout benefits” to AI, such as the benefits of research made available to AI by reason of brokerage commissions generated by the Funds’ securities transactions or reputational and other indirect benefits. The Trustees considered any possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest. |
168 | 2022 Annual Report |
Name, Address, and Year of Birth | Position(s) Held, Length of Time Served and Term of Office* | Principal Occupation During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee** | Other Directorships Held by Trustee During Past 5 Years*** |
Interested Trustees | ||||
Stephen Bird† c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1967 | Trustee since 2021 | Mr. Bird joined the Board of abrdn 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. | 28 | None. |
Independent Trustees | ||||
Radhika Ajmera c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1964 | Trustee since 2020 | Ms. Ajmera was appointed Chair of abrdn Japan Equity Fund Inc in 2017, having served as a director since 2014. She has been an independent nonexecutive director of abrdn Asia-Pacific Income Fund VCC since 2015. She is also an independent non-executive director of abrdn Funds since 2020 and abrdn Global Income Fund Inc, abrdn Asia-Pacific Income Fund Inc and abrdn Australia Equity Fund Inc since 2021. She has over 20 years’ experience in fund management, predominantly in emerging markets. She has also held a number of UK closed end fund non-executive directorships. Ms. Ajmera is a graduate of the London School of Economics. | 23 | None. |
P. Gerald Malone c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1950 | Trustee since 2007 Chairman of the Board | 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) since 2018. He is also Chairman of many of the open and closed end funds in the Fund Complex. He previously served as a non-executive director of U.S. healthcare company Bionik Laboratories Corp. (2018 - July 2022), as Independent Chairman of UK companies Crescent OTC Ltd (pharmaceutical services) until February 2018; and fluidOil Ltd. (oil services) until June 2018; U.S. company Rejuvenan llc (wellbeing services) until September 2017 and as chairman of UK company Ultrasis plc (healthcare software services company) until October 2014. 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. | 28 | None. |
Rahn K. Porter c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1954 | Trustee since 2016 | Mr. Porter is the Principal at RPSS Enterprises (consulting) since 2019. He was the Chief Financial and Administrative Officer of The Colorado Health Foundation from 2013 to 2019. | 19 | Director of CenturyLink Investment Management Company since 2006, Director of BlackRidge Financial Inc. from 2004 to 2019. |
2022 Annual Report | 169 |
Name, Address, and Year of Birth | Position(s) Held, Length of Time Served and Term of Office* | Principal Occupation During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee** | Other Directorships Held by Trustee During Past 5 Years*** |
Steven N. Rappaport c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1948 | Trustee since 2016 | Mr. Rappaport has been a Partner of Lehigh Court, LLC (private investment firm) and RZ Capital LLC (private investment firm) since 2004. | 20 | Director of iCAD, Inc. (a surgical and Medical instruments and apparatus company) from 2006 to 2018; Director of Credit Suisse Funds (9) since 1999; Director of Credit Suisse Asset Management Income Fund, Inc. since 2005; and Director of Credit Suisse NEXT Fund since 2013; and Director of Credit Suisse Park View Fund until 2016. |
Warren C. Smith c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1955 | Trustee since 2007 | Mr. Smith has been a founding partner of MRB Partners Inc. (independent investment research and consultancy firm) since 2010. He has been a Director of Aberdeen Asia-Pacific Income Investment Company Limited (Canadian investment fund) since 1993 | 19 | None. |
* | Each Trustee holds office for an indefinite term until his successor is elected and qualified. |
** | As of October 31, 2022, the Fund Complex consists of: abrdn Income Credit Strategies Fund, abrdn Asia-Pacific Income Fund, Inc., abrdn Global Income Fund, Inc., abrdn Australia Equity Fund, Inc., abrdn Emerging Markets Equity Income Fund, Inc., abrdn Japan Equity Fund, Inc., The India Fund, Inc., abrdn Global Dynamic Dividend Fund, abrdn Total Dynamic Dividend Fund, abrdn Global Premier Properties Fund, abrdn Standard Global Infrastructure Income Fund, abrdn Funds (which consists of 19 portfolios) and abdrn ETFs (which consists of 3 portfolios). For the purposes of listing the number of funds in the Fund Complex overseen by each Board member, each portfolio of abrdn Funds and abrdn ETFs is counted individually. |
*** | 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 “Exchange Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
† | Mr. Bird is considered to be an “interested person” of the Fund as defined in the 1940 Act because of his affiliation with the Investment Manager. |
170 | 2022 Annual Report |
Name, Address and Year of Birth | Position(s) Held* with the Fund | Term of Office and Length of Time Served | Principal Occupation During Past 5 Years |
Joseph Andolina** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Vice President and Chief Compliance Officer | Since 2017 | Currently, Chief Risk Officer – Americas for abrdn Inc. and serves as the Chief Compliance Officer for abrdn Inc. Prior to joining the Risk and Compliance Department, he was a member of abrdn Inc.'s Legal Department, where he served as US Counsel since 2012. |
Chris Demetriou** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Since 2020 | Currently, Chief Executive Officer – UK, EMEA and Americas. Mr. Demetriou joined abrdn Inc. in 2013, as a result of the acquisition of SVG, a FTSE 250 private equity investor based in London. |
Sharon Ferrari** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1977 | Vice President | Since 2022 | Currently, Senior Product Manager for abrdn Inc. Prior to that she was a Senior Fund Administration Manager for abrdn Inc. Ms. Ferrari joined the company in June 2008. |
Alan Goodson** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | President and Chief Executive Officer | Since 2022 | Currently, Executive Director, Product & Client Solutions – Americas for abrdn Inc., 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 abrdn Inc. and joined abrdn Inc. in 2000. |
Heather Hasson** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1982 | Vice President | Since 2022 | Currently, Senior Product Solutions and Implementation Manager for abrdn Inc. Ms. Hasson joined the company in November 2006. |
Robert Hepp** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1986 | Vice President | Since 2022 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Hepp joined abrdn Inc. as a Senior Paralegal in 2016. |
Megan Kennedy** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Secretary and Vice President | Since 2009 | Currently, Director, Senior Product Governance for abrdn Inc. Ms. Kennedy joined abrdn Inc. in 2005. |
Andrew Kim** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Since 2017 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Kim joined abrdn Inc. as a Product Manager in 2013. |
Brian Kordeck** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Vice President | Since 2022 | Currently, Senior Product Manager – US for abrdn Inc. Mr. Kordeck joined abrdn Inc. as a Senior Fund Administrator in 2013. |
2022 Annual Report | 171 |
Name, Address and Year of Birth | Position(s) Held* with the Fund | Term of Office and Length of Time Served | Principal Occupation During Past 5 Years |
Michael Marsico** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1980 | Vice President | Since 2022 | Currently, Senior Product Manager – US for abrdn Inc. Mr. Marsico joined abrdn Inc. as a Fund Administrator in 2014. |
Andrea Melia** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1969 | Treasurer, Chief Financial Officer, and Principal Accounting Office | Since 2009 | Currently, Vice President and Senior Director, Product Management for abrdn Inc. Ms. Melia joined abrdn Inc. in September 2009. |
Ben Moser** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1979 | Vice President | Since 2018 | Currently, Head of Commercial Operations, Americas for abrdn Inc. Mr. Moser joined abrdn Inc. in July 2008. |
Lucia Sitar** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1971 | Vice President | Since 2008 | Currently, Vice President and Head of Product Management and Governance for abrdn Inc. since 2020. Previously, Ms. Sitar was Managing U.S. Counsel for abrdn Inc. She joined abrdn Inc. as U.S. Counsel in July 2007. |
* | Each officer holds office for an indefinite term at the pleasure of the Board of Trustees and until his or her successor is elected and qualified. |
** | Each officer may hold officer position(s) in one or more other funds which are part of the Fund Complex. |
172 | 2022 Annual Report |
1900 Market Street, Suite 200
Philadelphia, PA 19103
1900 Market Street, Suite 200
Philadelphia, PA 19103
430 W. 7th Street, Ste. 219534
Kansas City, MO 64105-1407
1900 Market Street, Suite 200
Philadelphia, PA 19103
1 Lincoln Street
Boston, MA 02111
1601 Market Street
Philadelphia, PA 19103
1900 K Street N.W.
Washington, DC 20006
Fixed Income and Multi-Asset Series
Class A - AKFAX ■ | Class C - AKFCX■ | Class R - AKFRX■ | Institutional Class - AKFIX■ | Institutional Service Class - AKFSX■ |
Class A - CUGAX ■ | Class C - CGBCX■ | Institutional Class - AGCIX■ | Institutional Service Class - CGFIX■ |
Class A - BJBHX ■ | Institutional Class - JHYIX■ |
Class A - NTFAX ■ | Class C - GTICX■ | Institutional Class - ABEIX■ | Institutional Service Class - ABESX■ |
Class A - AAHMX ■ | Class C - ACHMX■ | Institutional Class - AHYMX■ |
Class A - ATOAX ■ | Class A1 - ATOBX■ | Institutional Class - ATOIX■ |
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2022 Annual Report | 1 |
1 | The MSCI AC World Index captures large- and mid-cap representation across 23 developed markets countries and 23 emerging markets countries. The index covers approximately 85% of the global investable equity opportunity set. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The MSCI Emerging Markets Index captures large- and mid-cap representation across 24 Emerging Markets (EM) countries. With 832 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | Growth stock – A stock of a company that generates substantial and sustainable positive cash flow, and whose revenues and earnings are expected to increase at a faster rate than the average company in the same industry. |
5 | The JP Morgan Global Government Bond Index measures the performance of leading Government bond markets based on total return in U.S. currency. It is calculated by JP Morgan, and reflects reinvestment of all applicable dividends, capital gains and interest. |
6 | Kollmeyer, Barbara. “250 years of history is telling investors to bet on Treasury bonds in 2023, Bank of America says.” Market Watch, October 29, 2022. https://www.marketwatch.com/story/250-years-of-history-is-telling-investors- to-bet-on-treasury-bonds-in-2023-bank-of-america-says-11666958942?mod= livecoverage_web. |
7 | The Barclays U.S. Corporate Investment Grade Index is an unmanaged index considered representative of publicly issued, fixed‐rate, nonconvertible, investment‐grade debt securities. |
8 | The ICE BofA Global High Yield Constrained Index tracks the performance of U.S. dollar-, Canadian dollar-, British pound- and euro-denominated below-investment-grade corporate debt publicly issued in the major domestic or eurobond markets. |
9 | The FTSE EPRA/Nareit Global Real Estate Index is a free-float adjusted, market capitalization-weighted index designed to track the performance of listed real estate companies in both developed and emerging countries worldwide. |
10 | The MSCI U.S. REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market. |
2 | 2022 Annual Report |
1 | Underweight – A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2 | Overweight – A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2022 Annual Report | 3 |
4 | Volatility – If the price of a fund or asset moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
5 | Investment-grade bonds – Companies whose bonds are rated as 'investment grade' have a lower chance of defaulting on their debt than those rated as 'non-investment grade'. Generally, these bonds are issued by long-established companies with strong balance sheets. Bonds rated BBB or above are known as Investment Grade Bonds. |
4 | 2022 Annual Report |
Average Annual Total Return (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (25.31%) | (4.50%) | (0.52%) |
w/SC1 | (27.58%) | (5.08%) | (0.83%) | |
Class C | w/o SC | (25.64%) | (5.03%) | (1.14%) |
w/SC2 | (26.33%) | (5.03%) | (1.14%) | |
Class R3 | w/o SC | (25.44%) | (4.74%) | (0.76%) |
Institutional Service Class3 | w/o SC | (24.93%) | (4.15%) | (0.19%) |
Institutional Class3 | w/o SC | (24.81%) | (4.09%) | (0.18%) |
1 | A 3.00% front-end sales charge was deducted. Prior to February 28, 2019 the front-end sales charge was 4.25% |
2 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
3 | Not subject to any sales charges. |
2022 Annual Report | 5 |
Asset Allocation | |
Government Bonds | 68.5% |
Corporate Bonds | 26.5% |
Warrants | –% |
Other Assets in Excess of Liabilities | 5.0% |
100.0% |
Top Ten Holdings | |
Brazil Notas do Tesouro Nacional, Series F 01/01/2025 | 3.0% |
Brazil Notas do Tesouro Nacional, Series F 01/01/2031 | 2.6% |
Dominican Republic International Bond 01/27/2045 | 2.2% |
Saudi Government International Bond 04/17/2049 | 2.0% |
Georgian Railway JSC 06/17/2028 | 1.6% |
Tunisian Republic 02/17/2024 | 1.6% |
Qatar Government International Bond 03/14/2049 | 1.6% |
Qatar Government International Bond 04/23/2048 | 1.5% |
Bahrain Government International Bond 01/26/2026 | 1.5% |
Argentine Republic Government International Bond 01/09/2038 | 1.4% |
Countries | |
Brazil | 6.7% |
Mexico | 5.7% |
South Africa | 5.2% |
Saudi Arabia | 5.1% |
Qatar | 4.3% |
Dominican Republic | 3.8% |
Nigeria | 3.1% |
Egypt | 3.0% |
Indonesia | 3.0% |
Ecuador | 2.9% |
Hungary | 2.7% |
United Arab Emirates | 2.5% |
Angola | 2.1% |
Iraq | 2.1% |
Bahrain | 2.1% |
Uzbekistan | 2.0% |
Other, less than 2% each | 38.7% |
Assets in Excess of Other Liabilities | 5.0% |
100.0% |
6 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—26.5% | |||
CHINA—0.0% | |||
Real Estate—0.0% | |||
Zhenro Properties Group Ltd., 7.10%, 09/10/2024(a)(b)(c) | $ | 200,000 | $ 4,008 |
COLOMBIA—0.7% | |||
Commercial Banks—0.7% | |||
Bancolombia SA, (fixed rate to 10/18/2022, variable rate thereafter), 7.14%, 10/18/2027 | 200,000 | 173,170 | |
GEORGIA—1.6% | |||
Transportation—1.6% | |||
Georgian Railway JSC, 4.00%, 06/17/2028(a) | 520,000 | 391,342 | |
INDIA—1.6% | |||
Commercial Banks—1.0% | |||
HDFC Bank Ltd., 8.10%, 03/22/2025(a) | INR | 20,000,000 | 237,458 |
Transportation—0.6% | |||
Indian Railway Finance Corp. Ltd., 2.80%, 02/10/2031(a) | $ | 200,000 | 149,399 |
Total India | 386,857 | ||
INDONESIA—3.0% | |||
Electric Utilities—1.3% | |||
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 6.25%, 01/25/2049(a) | 387,000 | 308,149 | |
Oil, Gas & Consumable Fuels—1.7% | |||
Pertamina Persero PT | |||
3.65%, 07/30/2029(a) | 305,000 | 260,343 | |
5.63%, 05/20/2043(a) | 200,000 | 165,000 | |
425,343 | |||
Total Indonesia | 733,492 | ||
KAZAKHSTAN—1.2% | |||
Oil, Gas & Consumable Fuels—1.2% | |||
KazMunayGas National Co. JSC, 5.38%, 04/24/2030(a) | 200,000 | 164,066 | |
Tengizchevroil Finance Co. International Ltd., 3.25%, 08/15/2030(a) | 214,000 | 145,841 | |
309,907 | |||
KUWAIT—1.0% | |||
Chemicals—1.0% | |||
MEGlobal Canada ULC, 5.00%, 05/18/2025(a) | 250,000 | 241,562 | |
MEXICO—5.7% | |||
Chemicals—0.6% | |||
Braskem Idesa SAPI, 7.45%, 11/15/2029(a) | 200,000 | 152,990 | |
Commercial Banks—0.8% | |||
BBVA Bancomer SA, (fixed rate to 09/13/2029, variable rate thereafter), 5.88%, 09/13/2034(a) | 230,000 | 192,172 | |
Oil, Gas & Consumable Fuels—3.7% | |||
Petroleos Mexicanos | |||
6.50%, 06/02/2041 | 330,000 | 207,900 |
Shares or Principal Amount | Value | ||
6.75%, 09/21/2047 | $ | 462,000 | $ 278,254 |
6.35%, 02/12/2048 | 340,000 | 195,099 | |
6.95%, 01/28/2060 | 420,000 | 252,053 | |
933,306 | |||
Real Estate Investment Trust (REIT) Funds—0.6% | |||
Trust Fibra Uno, 6.39%, 01/15/2050(a) | 220,000 | 145,750 | |
Total Mexico | 1,424,218 | ||
MOROCCO—0.6% | |||
Chemicals—0.6% | |||
OCP SA, 6.88%, 04/25/2044(a) | 200,000 | 157,475 | |
NIGERIA—1.2% | |||
Commercial Banks—0.6% | |||
BOI Finance BV, 7.50%, 02/16/2027(a) | EUR | 194,000 | 145,708 |
Engineering & Construction—0.6% | |||
IHS Netherlands Holdco BV, 8.00%, 09/18/2027(a) | $ | 200,000 | 154,376 |
Total Nigeria | 300,084 | ||
PANAMA—0.7% | |||
Commercial Banks—0.7% | |||
Global Bank Corp., (fixed rate to 04/16/2028, variable rate thereafter), 5.25%, 04/16/2029(a) | 198,000 | 175,404 | |
PERU—1.3% | |||
Metals & Mining—0.8% | |||
Nexa Resources SA, 5.38%, 05/04/2027(a) | 200,000 | 182,560 | |
Oil, Gas & Consumable Fuels—0.5% | |||
Petroleos del Peru SA, 5.63%, 06/19/2047(a) | 200,000 | 128,286 | |
Total Peru | 310,846 | ||
SAUDI ARABIA—2.3% | |||
Oil, Gas & Consumable Fuels—2.3% | |||
Saudi Arabian Oil Co. | |||
2.25%, 11/24/2030(a) | 400,000 | 315,454 | |
4.38%, 04/16/2049(a) | 330,000 | 256,575 | |
572,029 | |||
SOUTH AFRICA—2.2% | |||
Diversified Telecommunication Services—1.0% | |||
MTN Mauritius Investments Ltd., 6.50%, 10/13/2026(a) | 250,000 | 238,225 | |
Electric Utilities—1.2% | |||
Eskom Holdings SOC Ltd., 7.13%, 02/11/2025(a) | 330,000 | 308,154 | |
Total South Africa | 546,379 | ||
TRINIDAD—0.8% | |||
Oil, Gas & Consumable Fuels—0.8% | |||
Heritage Petroleum Co Ltd, 9.00%, 08/12/2029(a) | 200,000 | 210,400 | |
UKRAINE—0.5% | |||
Agriculture—0.4% | |||
MHP Lux SA, 6.95%, 04/03/2026(a)(b)(c) | 200,000 | 89,400 |
2022 Annual Report | 7 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UKRAINE (continued) | |||
Electric Utilities—0.1% | |||
NPC Ukrenergo, 6.88%, 11/09/2028(a)(b)(c) | $ | 200,000 | $ 28,808 |
Total Ukraine | 118,208 | ||
UNITED ARAB EMIRATES—2.0% | |||
Diversified Financial Services—1.2% | |||
ICD Sukuk Co. Ltd., 5.00%, 02/01/2027(a) | 300,000 | 288,750 | |
Energy Equipment & Services—0.8% | |||
Galaxy Pipeline Assets Bidco Ltd., 2.63%, 03/31/2036(a)(d) | 264,000 | 200,502 | |
Total United Arab Emirates | 489,252 | ||
VENEZUELA—0.1% | |||
Oil, Gas & Consumable Fuels—0.1% | |||
Petroleos de Venezuela SA | |||
6.00%, 05/16/2024(a)(b)(c)(d) | 1,140,000 | 25,650 | |
6.00%, 11/15/2026(a)(b)(c)(d) | 525,236 | 9,979 | |
35,629 | |||
Total Corporate Bonds | 6,580,262 | ||
GOVERNMENT BONDS—68.5% | |||
ANGOLA—2.1% | |||
Angolan Government International Bond | |||
8.00%, 11/26/2029(a) | 200,000 | 162,340 | |
9.38%, 05/08/2048(a) | 475,000 | 360,430 | |
Total Angola | 522,770 | ||
ARGENTINA—1.4% | |||
Argentine Republic Government International Bond | |||
0.00%, 12/15/2035(b)(e) | 533,627 | 2,668 | |
3.88%, 01/09/2038(d)(f) | 1,377,900 | 356,515 | |
Total Argentina | 359,183 | ||
ARMENIA—1.3% | |||
Republic of Armenia International Bond | |||
3.95%, 09/26/2029(a) | 260,000 | 187,762 | |
3.60%, 02/02/2031(a) | 200,000 | 136,436 | |
Total Armenia | 324,198 | ||
BAHAMAS—1.3% | |||
Bahamas Government International Bond, 6.00%, 11/21/2028(a)(d) | 521,000 | 328,940 | |
BAHRAIN—2.1% | |||
Bahrain Government International Bond | |||
7.00%, 01/26/2026(a) | 357,000 | 356,129 | |
5.63%, 05/18/2034(a) | 200,000 | 156,516 | |
Total Bahrain | 512,645 | ||
BELARUS—0.5% | |||
Republic of Belarus Ministry of Finance, 5.88%, 02/24/2026(a)(b)(c) | 650,000 | 133,250 | |
BENIN—0.9% | |||
Benin Government International Bond, 4.88%, 01/19/2032(a)(d) | EUR | 347,000 | 234,261 |
Shares or Principal Amount | Value | ||
BRAZIL—6.7% | |||
Brazil Notas do Tesouro Nacional | |||
Series F, 10.00%, 01/01/2025 | BRL | 4,000,000 | $ 748,799 |
10.00%, 01/01/2027 | 700,000 | 128,687 | |
10.00%, 01/01/2029 | 899,000 | 161,462 | |
Series F, 10.00%, 01/01/2031 | 3,599,000 | 634,180 | |
Total Brazil | 1,673,128 | ||
BULGARIA—0.5% | |||
Bulgaria Government International Bond, 4.13%, 09/23/2029(a) | EUR | 139,000 | 128,113 |
CAMEROON—0.9% | |||
Republic of Cameroon International Bond, 5.95%, 07/07/2032(a)(d) | 349,000 | 226,723 | |
CHILE—1.0% | |||
Chile Government International Bond, 3.50%, 01/31/2034 | $ | 305,000 | 246,000 |
COLOMBIA—0.8% | |||
Colombia Government International Bond, 4.13%, 05/15/2051 | 370,000 | 196,212 | |
CROATIA—0.6% | |||
Croatia Government International Bond, 1.50%, 06/17/2031(a) | EUR | 179,000 | 143,021 |
DOMINICAN REPUBLIC—3.8% | |||
Dominican Republic International Bond | |||
5.50%, 02/22/2029(a) | $ | 200,000 | 174,627 |
6.85%, 01/27/2045(a) | 700,000 | 539,675 | |
5.88%, 01/30/2060 | 360,000 | 236,433 | |
Total Dominican Republic | 950,735 | ||
ECUADOR—2.9% | |||
Ecuador Government International Bond | |||
5.50%, 07/31/2030(a)(d)(f) | 1,114,240 | 591,614 | |
2.50%, 07/31/2035(a)(d)(f) | 126,400 | 46,198 | |
1.50%, 07/31/2040(a)(d)(f) | 281,900 | 93,076 | |
Total Ecuador | 730,888 | ||
EGYPT—3.0% | |||
Egypt Government International Bond | |||
5.63%, 04/16/2030(a) | 100,000 | 59,621 | |
7.90%, 02/21/2048(a) | 425,000 | 239,822 | |
8.70%, 03/01/2049(a) | 400,000 | 238,000 | |
8.88%, 05/29/2050(a) | 340,000 | 201,476 | |
Total Egypt | 738,919 | ||
GABON—0.7% | |||
Gabon Government International Bond, 6.95%, 06/16/2025(a) | 200,000 | 180,172 | |
GHANA—0.6% | |||
Ghana Government International Bond | |||
7.75%, 04/07/2029(a)(d) | 336,000 | 96,751 | |
7.88%, 02/11/2035(a)(d) | 200,000 | 56,016 | |
Total Ghana | 152,767 | ||
GUATEMALA—0.9% | |||
Guatemala Government Bond, 6.13%, 06/01/2050(a)(d) | 270,000 | 231,682 |
8 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
GOVERNMENT BONDS (continued) | |||
HUNGARY—2.7% | |||
Hungary Government International Bond | |||
5.25%, 06/16/2029(a) | $ | 200,000 | $ 183,880 |
5.50%, 06/16/2034(a) | 414,000 | 355,957 | |
7.63%, 03/29/2041 | 122,000 | 121,859 | |
Total Hungary | 661,696 | ||
IRAQ—2.1% | |||
Iraq International Bond | |||
6.75%, 03/09/2023(a) | 360,000 | 353,700 | |
5.80%, 01/15/2028(a)(d) | 190,437 | 161,783 | |
Total Iraq | 515,483 | ||
IVORY COAST—1.3% | |||
Ivory Coast Government International Bond | |||
5.88%, 10/17/2031(a)(d) | EUR | 160,000 | 119,697 |
6.88%, 10/17/2040(a)(d) | 100,000 | 65,966 | |
6.63%, 03/22/2048(a)(d) | 203,000 | 126,387 | |
Total Ivory Coast | 312,050 | ||
JORDAN—1.6% | |||
Jordan Government International Bond | |||
4.95%, 07/07/2025(a) | $ | 210,000 | 195,966 |
7.38%, 10/10/2047(a) | 270,000 | 201,825 | |
Total Jordan | 397,791 | ||
KENYA—0.7% | |||
Republic of Kenya Government International Bond, 7.00%, 05/22/2027(a)(d) | 210,000 | 166,467 | |
MOROCCO—0.6% | |||
Morocco Government International Bond, 3.00%, 12/15/2032(a) | 213,000 | 153,626 | |
NIGERIA—1.9% | |||
Nigeria Government International Bond | |||
6.13%, 09/28/2028(a) | 200,000 | 131,612 | |
8.38%, 03/24/2029(a) | 454,000 | 328,015 | |
Total Nigeria | 459,627 | ||
PAKISTAN—1.3% | |||
Pakistan Government International Bond | |||
6.88%, 12/05/2027(a) | 461,000 | 143,187 | |
7.38%, 04/08/2031(a) | 587,000 | 181,970 | |
Total Pakistan | 325,157 | ||
PHILIPPINES—1.6% | |||
Philippines Government International Bonds | |||
5.61%, 04/13/2033 | 200,000 | 200,032 | |
5.95%, 10/13/2047 | 200,000 | 195,947 | |
Total Philippines | 395,979 | ||
QATAR—4.3% | |||
Qatar Government International Bond | |||
5.10%, 04/23/2048(a) | 400,000 | 372,000 | |
4.82%, 03/14/2049(a) | 436,000 | 388,061 | |
4.40%, 04/16/2050(a) | 356,000 | 299,040 | |
Total Qatar | 1,059,101 |
Shares or Principal Amount | Value | ||
ROMANIA—1.8% | |||
Romanian Government International Bond | |||
5.00%, 09/27/2026(a) | EUR | 127,000 | $ 121,429 |
2.00%, 01/28/2032(a) | 160,000 | 101,345 | |
2.63%, 12/02/2040(a) | 178,000 | 91,683 | |
2.75%, 04/14/2041(a) | 160,000 | 82,946 | |
3.38%, 01/28/2050(a) | 76,000 | 39,785 | |
Total Romania | 437,188 | ||
RWANDA—1.3% | |||
Rwanda International Government Bond, 5.50%, 08/09/2031(a) | $ | 440,000 | 324,192 |
SAUDI ARABIA—2.8% | |||
Saudi Government International Bond | |||
5.00%, 04/17/2049(a) | 570,000 | 484,500 | |
3.75%, 01/21/2055(a) | 302,000 | 210,267 | |
Total Saudi Arabia | 694,767 | ||
SENEGAL—0.8% | |||
Senegal Government International Bond, 6.25%, 05/23/2033(a)(d) | 260,000 | 194,632 | |
SERBIA—1.0% | |||
Serbia International Bond | |||
3.13%, 05/15/2027(a) | EUR | 210,000 | 176,403 |
1.50%, 06/26/2029(a) | 100,000 | 69,043 | |
Total Serbia | 245,446 | ||
SOUTH AFRICA—3.0% | |||
Republic of South Africa Government Bond | |||
2040, 9.00%, 01/31/2040 | ZAR | 6,151,100 | 263,574 |
6.50%, 02/28/2041 | 10,179,000 | 335,592 | |
Republic of South Africa Government International Bond, 6.25%, 03/08/2041 | $ | 200,000 | 152,000 |
Total South Africa | 751,166 | ||
TUNISIA—1.9% | |||
Tunisian Republic | |||
6.75%, 10/31/2023(a) | EUR | 100,000 | 80,404 |
5.63%, 02/17/2024(a) | 538,000 | 390,730 | |
Total Tunisia | 471,134 | ||
UKRAINE—0.2% | |||
Ukraine Government International Bond, 6.75%, 06/20/2028(a)(b)(c) | 340,000 | 48,371 | |
UNITED ARAB EMIRATES—0.5% | |||
Finance Department Government of Sharjah, 4.00%, 07/28/2050(a) | $ | 233,000 | 134,371 |
URUGUAY—1.9% | |||
Uruguay Government International Bond | |||
8.50%, 03/15/2028(a) | UYU | 8,402,000 | 182,507 |
4.38%, 12/15/2028(d)(g) | 11,344,679 | 293,730 | |
Total Uruguay | 476,237 | ||
UZBEKISTAN—2.0% | |||
Republic of Uzbekistan International Bond | |||
3.70%, 11/25/2030(a) | $ | 478,000 | 344,163 |
3.90%, 10/19/2031(a) | 220,000 | 156,396 | |
Total Uzbekistan | 500,559 |
2022 Annual Report | 9 |
Shares or Principal Amount | Value | ||
GOVERNMENT BONDS (continued) | |||
VENEZUELA—0.1% | |||
Venezuela Government International Bond, 9.25%, 05/07/2028(a)(b)(c) | $ | 165,000 | $ 11,138 |
ZAMBIA—1.1% | |||
Zambia Government International Bond | |||
8.50%, 04/14/2024(a)(b) | 200,000 | 79,500 | |
8.97%, 07/30/2027(a)(d) | 515,000 | 202,755 | |
Total Zambia | 282,255 | ||
Total Government Bonds | 17,032,040 | ||
WARRANTS—0.0% | |||
BRAZIL—0.0% | |||
OAS S.A.(h)(i)(j) | 29,232 | – | |
UNITED STATES—0.0% | |||
CANADACO, Series A(h)(i)(j) | 92,840 | – | |
Total Warrants | – | ||
Total Investments (Cost $33,559,969)(k)—95.0% | 23,612,302 | ||
Other Assets in Excess of Liabilities—5.0% | 1,252,512 | ||
Net Assets—100.0% | $24,864,814 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Security is in default. |
(c) | Illiquid security. |
(d) | Sinkable security. |
(e) | Variable or Floating Rate security. Rate disclosed is as of October 31, 2022. |
(f) | Step bond. Rate disclosed is as of October 31, 2022. |
(g) | Inflation linked security. |
(h) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(i) | Non-income producing security. |
(j) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(k) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
BRL | Brazilian Real |
CLP | Chile Peso |
COP | Colombian Peso |
EUR | Euro Currency |
INR | Indian Rupee |
REIT | Real Estate Investment Trust |
USD | U.S. Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
At October 31, 2022, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Brazilian Real/United States Dollar | ||||||||
11/22/2022 | UBS AG | BRL | 3,799,000 | USD | 699,529 | $732,434 | $32,905 | |
Chilean Peso/United States Dollar | ||||||||
11/22/2022 | Morgan Stanley & Co. | CLP | 112,369,000 | USD | 121,591 | 118,746 | (2,845) | |
11/22/2022 | UBS AG | CLP | 262,007,000 | USD | 280,813 | 276,876 | (3,937) | |
Colombian Peso/United States Dollar | ||||||||
11/22/2022 | Royal Bank of Canada | COP | 1,245,498,000 | USD | 281,644 | 251,331 | (30,313) | |
Euro/United States Dollar | ||||||||
01/19/2023 | Morgan Stanley & Co. | EUR | 19,000 | USD | 18,728 | 18,900 | 172 | |
Indian Rupee/United States Dollar | ||||||||
11/22/2022 | UBS AG | INR | 3,510,000 | USD | 43,932 | 42,319 | (1,613) | |
$1,440,606 | $(5,631) |
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Brazilian Real | ||||||||
11/22/2022 | UBS AG | USD | 2,200,336 | BRL | 11,412,000 | $2,200,194 | $142 | |
United States Dollar/Chilean Peso | ||||||||
11/22/2022 | UBS AG | USD | 413,905 | CLP | 374,376,000 | 395,622 | 18,283 | |
United States Dollar/Euro | ||||||||
01/19/2023 | UBS AG | USD | 2,450,057 | EUR | 2,499,354 | 2,486,184 | (36,127) |
10 | 2022 Annual Report |
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/South African Rand | ||||||||
01/19/2023 | Deutsche Bank AG | USD | 260,137 | ZAR | 4,832,000 | $261,533 | $(1,396) | |
01/19/2023 | Morgan Stanley & Co. | USD | 353,541 | ZAR | 6,446,371 | 348,911 | 4,630 | |
$5,692,444 | $(14,468) | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $56,132 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(76,231) |
2022 Annual Report | 11 |
1 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
2 | Duration – A measure of the maturity of a bond or portfolio of bonds that takes into account the periodic coupon payments. It attempts to measure market risk, or volatility, in a bond by considering maturity and the time pattern of interest payments prior to repayment. Two bonds with the same term to maturity but different coupon rates will respond differently to changes in interest rates. So will bonds with the same coupon rate but different terms to maturity. The higher the duration, the greater a bond’s price-sensitivity to changes in yield. |
3 | Yield-curve steepener – A yield-curve steepener is a strategy that seeks to take advantage of an anticipated widening yield spread between short and long maturities. |
4 | Investment-grade bonds – Companies whose bonds are rated as 'investment grade' have a lower chance of defaulting on their debt than those rated as 'non-investment grade'. Generally, these bonds are issued by long-established companies with strong balance sheets. Bonds rated BBB or above are known as Investment Grade Bonds. |
5 | Volatility – If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
12 | 2022 Annual Report |
6 | Currency swaps – the exchange of interest (and sometimes principal) in one currency for the same in another currency. |
7 | Currency hedging – The use of derivative transactions to protect the value of an investment against fluctuations in exchange rates. |
8 | Credit default swaps – a contract that transfers the credit exposure of fixed-income products between two or more parties. |
9 | Interest-rate swap – an agreement between two parties in which one stream of future interest payments is exchanged for another based on a specified principal amount. |
10 | Interest-rate swaption – refers to an option to enter into an interest rate swap or some other type of swap. In exchange for an options premium, the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date. |
11 | Inflation swap – a contract used to transfer inflation risk from one party to another through an exchange of fixed cash flows. In an inflation swap, one party pays a fixed-rate cash flow on a principal amount while the other party pays a floating rate linked to an inflation index. |
12 | Total return swap – comprises an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains. |
2022 Annual Report | 13 |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (11.11%) | (0.38%) | (0.07%) |
w/SC2 | (13.79%) | (0.99%) | (0.38%) | |
Class C | w/o SC | (11.59%) | (1.05%) | (0.77%) |
w/SC3 | (12.44%) | (1.05%) | (0.77%) | |
Institutional Service Class4 | w/o SC | (10.82%) | (0.17%) | 0.09% |
Institutional Class4 | w/o SC | (10.71%) | (0.09%) | 0.21% |
1 | The Fund changed its investment objective and principal investment strategies, including its 80% investment policy, effective November 15, 2019. The Fund also previously changed its investment objective and strategies effective August 15, 2016. Performance information for periods prior to November 15, 2019 does not reflect the current investment strategy. Please consult the Fund’s prospectus for more detail. |
2 | A 3.00% front-end sales charge was deducted. Prior to February 28, 2019 the front-end sales charge was 4.25%. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
14 | 2022 Annual Report |
Asset Allocation | |
Government Bonds | 35.9% |
Certificates of Deposit | 24.5% |
Common Stocks | 18.2% |
U.S. Treasuries | 10.7% |
Money Market Funds | 3.3% |
Other Assets in Excess of Liabilities | 7.4% |
100.0% |
Top Ten Holdings | |
Bundesrepublik Deutschland Bundesanleihe 02/15/2023 | 14.1% |
French Republic Government Bond OAT 05/25/2023 | 4.5% |
Netherlands Government Bond 01/15/2023 | 4.4% |
Republic of Austria Government Bond 11/22/2022 | 4.4% |
Japan Government Five Year Bond, Series 135 03/20/2023 | 4.3% |
Brazil Notas do Tesouro Nacional 01/01/2027 | 4.2% |
Bristol-Myers Squibb Co. | 0.5% |
Adobe, Inc. | 0.5% |
AT&T, Inc. | 0.4% |
Visa, Inc. | 0.4% |
Countries | |
Germany | 14.1% |
United States | 13.5% |
Japan | 5.0% |
France | 4.8% |
Netherlands | 4.7% |
Brazil | 4.5% |
Austria | 4.4% |
Other, less than 2% each | 3.1% |
Short-Term Investments | 38.5% |
Assets in Excess of Other Liabilities | 7.4% |
100.0% |
2022 Annual Report | 15 |
Shares or Principal Amount | Value | ||
COMMON STOCKS—18.2% | |||
BRAZIL—0.3% | |||
Materials—0.3% | |||
Yara International ASA | 2,829 | $ 126,262 | |
CANADA—0.9% | |||
Consumer Staples—0.3% | |||
Saputo, Inc. | 4,629 | 112,671 | |
Industrials—0.4% | |||
Canadian National Railway Co. | 1,455 | 172,377 | |
Materials—0.2% | |||
Nutrien Ltd. | 1,292 | 109,166 | |
Total Canada | 394,214 | ||
DENMARK—0.3% | |||
Materials—0.3% | |||
Chr Hansen Holding AS | 2,043 | 113,470 | |
FRANCE—0.3% | |||
Consumer Staples—0.3% | |||
Danone SA | 2,278 | 113,215 | |
HONG KONG—0.4% | |||
Consumer Staples—0.4% | |||
China Mengniu Dairy Co. Ltd. | 27,000 | 86,431 | |
WH Group, Ltd.(a) | 177,500 | 89,639 | |
176,070 | |||
IRELAND—0.2% | |||
Consumer Staples—0.2% | |||
Kerry Group PLC, Class A | 1,187 | 103,097 | |
JAPAN—0.7% | |||
Communication Services—0.4% | |||
KDDI Corp. | 5,700 | 168,475 | |
Consumer Staples—0.3% | |||
MEIJI Holdings Co. Ltd. | 2,500 | 102,873 | |
Total Japan | 271,348 | ||
NETHERLANDS—0.3% | |||
Consumer Staples—0.3% | |||
Koninklijke Ahold Delhaize NV | 4,326 | 120,645 | |
NORWAY—0.2% | |||
Consumer Staples—0.2% | |||
Mowi ASA | 5,832 | 87,047 | |
SWITZERLAND—0.8% | |||
Consumer Staples—0.4% | |||
Nestle SA | 1,541 | 167,751 | |
Health Care—0.4% | |||
Novartis AG | 2,151 | 173,996 | |
Total Switzerland | 341,747 | ||
THAILAND—0.3% | |||
Consumer Staples—0.3% | |||
Charoen Pokphand Foods PCL | 168,300 | 111,897 |
Shares or Principal Amount | Value | ||
UNITED STATES—13.5% | |||
Communication Services—0.8% | |||
AT&T, Inc. | 10,264 | $ 187,113 | |
Verizon Communications, Inc. | 4,188 | 156,505 | |
343,618 | |||
Consumer Discretionary—0.4% | |||
Dollar General Corp. | 692 | 176,495 | |
Consumer Staples—4.2% | |||
Campbell Soup Co. | 2,390 | 126,455 | |
Coca-Cola Co. (The) | 2,838 | 169,854 | |
Darling Ingredients, Inc.(b) | 1,567 | 122,978 | |
Hormel Foods Corp. | 2,511 | 116,636 | |
Ingredion, Inc. | 1,364 | 121,560 | |
Kroger Co. | 2,427 | 114,773 | |
Lamb Weston Holdings, Inc. | 1,476 | 127,261 | |
Mondelez International, Inc., Class A | 2,845 | 174,911 | |
PepsiCo, Inc. | 1,006 | 182,669 | |
Procter & Gamble Co. (The) | 1,236 | 166,452 | |
Sysco Corp. | 1,441 | 124,733 | |
Tyson Foods, Inc., Class A | 1,577 | 107,788 | |
US Foods Holding Corp.(b) | 3,900 | 116,064 | |
1,772,134 | |||
Financials—1.3% | |||
BlackRock, Inc. | 273 | 176,333 | |
Intercontinental Exchange, Inc. | 1,792 | 171,261 | |
Marsh & McLennan Cos., Inc. | 1,093 | 176,509 | |
524,103 | |||
Health Care—3.3% | |||
Abbott Laboratories | 1,661 | 164,339 | |
Bristol-Myers Squibb Co. | 2,438 | 188,872 | |
CVS Health Corp. | 1,677 | 158,812 | |
Danaher Corp. | 620 | 156,035 | |
Johnson & Johnson | 1,030 | 179,189 | |
Medtronic PLC | 1,921 | 167,780 | |
Thermo Fisher Scientific, Inc. | 319 | 163,957 | |
UnitedHealth Group, Inc. | 325 | 180,424 | |
1,359,408 | |||
Industrials—0.6% | |||
AGCO Corp. | 1,052 | 130,627 | |
John Bean Technologies Corp. | 1,176 | 107,251 | |
237,878 | |||
Information Technology—2.5% | |||
Accenture PLC, Class A | 629 | 178,573 | |
Adobe, Inc.(b) | 584 | 186,004 | |
Cisco Systems, Inc. | 3,992 | 181,356 | |
Microsoft Corp. | 701 | 162,723 | |
PayPal Holdings, Inc.(b) | 1,855 | 155,041 | |
Visa, Inc., A Shares | 885 | 183,337 | |
1,047,034 | |||
Utilities—0.4% | |||
NextEra Energy, Inc. | 1,984 | 153,760 | |
Total United States | 5,614,430 | ||
Total Common Stocks | 7,573,442 |
16 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
GOVERNMENT BONDS—35.9% | |||
AUSTRIA—4.4% | |||
Republic of Austria Government Bond, 3.40%, 11/22/2022(a) | EUR | 1,840,000 | $ 1,819,907 |
BRAZIL—4.2% | |||
Brazil Notas do Tesouro Nacional, 10.00%, 01/01/2027 | BRL | 9,614,000 | 1,767,426 |
FRANCE—4.5% | |||
French Republic Government Bond OAT, 1.75%, 05/25/2023(a) | EUR | 1,880,000 | 1,858,392 |
GERMANY—14.1% | |||
Bundesrepublik Deutschland Bundesanleihe, 1.50%, 02/15/2023(a) | 5,920,000 | 5,855,657 | |
JAPAN—4.3% | |||
Japan Government Five Year Bond, Series 135, 0.10%, 03/20/2023 | JPY | 267,000,000 | 1,797,382 |
NETHERLANDS—4.4% | |||
Netherlands Government Bond, 3.75%, 01/15/2023(a) | EUR | 1,840,000 | 1,828,599 |
Total Government Bonds | 14,927,363 | ||
SHORT-TERM INVESTMENTS—38.5% | |||
CERTIFICATES OF DEPOSIT—24.5% | |||
NETHERLANDS—8.4% | |||
ING Bank NV, 2.95%, 11/01/2022 | $ | 1,751,912 | 1,751,912 |
Rabobank Nederland, 3.00%, 11/01/2022 | 1,751,956 | 1,751,956 | |
Total Netherlands | 3,503,868 | ||
UNITED KINGDOM—12.2% | |||
Bank of Montreal, 2.95%, 11/01/2022 | 1,563,201 | 1,563,201 | |
BNP Paribas SA, 2.97%, 11/01/2022 | 1,758,550 | 1,758,550 | |
Credit Agricole CIB, 3.03%, 11/01/2022 | 1,751,863 | 1,751,863 | |
Total United Kingdom | 5,073,614 | ||
UNITED STATES—3.9% | |||
Societe Generale SA, 2.85%, 11/01/2022 | 1,636,043 | 1,636,043 | |
Total Certificates of Deposit | 10,213,525 | ||
MONEY MARKET FUNDS—3.3% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(c) | 1,352,597 | 1,352,597 | |
Total Money Market Funds | 1,352,597 | ||
U.S. TREASURIES—10.7% | |||
U.S. Treasury Bill | |||
1.29%, 11/03/2022(d) | 1,000,000 | 999,881 | |
1.40%, 12/01/2022(d) | 1,000,000 | 997,131 | |
3.29%, 01/05/2023(d) | 1,000,000 | 993,157 | |
3.49%, 02/02/2023(d)(e) | 1,000,000 | 989,563 | |
4.02%, 03/02/2023(d) | 500,000 | 493,144 | |
Total U.S. Treasuries | 4,472,876 | ||
Total Short-Term Investments | 16,038,998 | ||
Total Investments (Cost $39,124,193)(f)—92.6% | 38,539,803 | ||
Other Assets in Excess of Liabilities—7.4% | 3,065,649 | ||
Net Assets—100.0% | $41,605,452 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Non-income producing security. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(d) | The rate shown is the discount yield at the time of purchase. |
(e) | All or a portion of the security has been designated as collateral for forward foreign currency exchange contracts and swap contracts. |
(f) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CHF | Swiss Franc |
CNY | Chinese Yuan Renminbi |
DKK | Denmark Krone |
EUR | Euro Currency |
GBP | British Pound Sterling |
HKD | Hong Kong Dollar |
INR | Indian Rupee |
JPY | Japanese Yen |
KRW | South Korean Won |
NOK | Norwegian Krone |
PLC | Public Limited Company |
SEK | Swedish Krona |
SGD | Singapore Dollar |
THB | Thai Baht |
TWD | New Taiwan Dollar |
USD | U.S. Dollar |
ZAR | South African Rand |
2022 Annual Report | 17 |
At October 31, 2022, the Fund held the following futures contracts: |
Futures Contracts | Number of Contracts Long/(Short) | Expiration Date | Notional Amount | Market Value | Unrealized Appreciation/ (Depreciation) |
Long Contract Positions | |||||
United States Treasury Note 6%–10 year Ultra | 38 | 12/20/2022 | $4,767,317 | $4,407,406 | $(359,911) |
Short Contract Positions | |||||
Euro STOXX 50 | (41) | 12/16/2022 | $(1,461,992) | $(1,465,950) | $(3,958) |
S&P 500 E-Mini | (40) | 12/16/2022 | (8,228,412) | (7,766,000) | 462,412 |
$458,454 | |||||
$98,543 |
At October 31, 2022, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Australian Dollar/United States Dollar | ||||||||
11/10/2022 | Citibank N.A. | AUD | 220,000 | USD | 144,921 | $140,753 | $(4,168) | |
Brazilian Real/United States Dollar | ||||||||
11/10/2022 | Morgan Stanley & Co. | BRL | 1,100,000 | USD | 203,394 | 212,601 | 9,207 | |
British Pound/United States Dollar | ||||||||
11/09/2022 | Morgan Stanley & Co. | GBP | 2,714,000 | USD | 2,940,795 | 3,112,954 | 172,159 | |
11/10/2022 | Citibank N.A. | GBP | 120,000 | USD | 128,642 | 137,643 | 9,001 | |
11/10/2022 | Citibank N.A. | GBP | 140,000 | USD | 161,682 | 160,584 | (1,098) | |
11/10/2022 | Goldman Sachs & Co. | GBP | 160,000 | USD | 185,135 | 183,525 | (1,610) | |
11/10/2022 | HSBC Bank plc | GBP | 270,000 | USD | 302,502 | 309,698 | 7,196 | |
11/10/2022 | JPMorgan Chase Bank N.A. | GBP | 190,000 | USD | 219,291 | 217,935 | (1,356) | |
11/10/2022 | Morgan Stanley & Co. | GBP | 87,711 | USD | 100,774 | 100,607 | (167) | |
Canadian Dollar/United States Dollar | ||||||||
11/10/2022 | Citibank N.A. | CAD | 181,551 | USD | 140,777 | 133,269 | (7,508) | |
11/10/2022 | JPMorgan Chase Bank N.A. | CAD | 150,000 | USD | 110,626 | 110,108 | (518) | |
11/10/2022 | Morgan Stanley & Co. | CAD | 43,770 | USD | 33,258 | 32,129 | (1,129) | |
Chinese Renminbi/United States Dollar | ||||||||
11/09/2022 | Morgan Stanley & Co. | CNY | 4,800,000 | USD | 683,278 | 664,038 | (19,240) | |
11/18/2022 | HSBC Bank plc | CNY | 14,701,000 | USD | 2,071,848 | 2,030,458 | (41,390) | |
11/21/2022 | HSBC Bank plc | CNY | 8,780,000 | USD | 1,238,119 | 1,212,012 | (26,107) | |
11/22/2022 | HSBC Bank plc | CNY | 3,498,000 | USD | 493,003 | 482,785 | (10,218) | |
11/29/2022 | HSBC Bank plc | CNY | 14,701,000 | USD | 2,072,694 | 2,026,442 | (46,252) | |
Danish Krone/United States Dollar | ||||||||
11/10/2022 | HSBC Bank plc | DKK | 1,300,000 | USD | 172,147 | 172,649 | 502 | |
11/10/2022 | Morgan Stanley & Co. | DKK | 442,121 | USD | 59,207 | 58,717 | (490) | |
Euro/United States Dollar | ||||||||
11/10/2022 | Barclays Bank plc | EUR | 170,000 | USD | 176,135 | 168,092 | (8,043) | |
11/10/2022 | HSBC Bank plc | EUR | 350,000 | USD | 344,909 | 346,073 | 1,164 | |
11/10/2022 | HSBC Bank plc | EUR | 330,000 | USD | 335,871 | 326,297 | (9,574) | |
11/10/2022 | JPMorgan Chase Bank N.A. | EUR | 1,073,725 | USD | 1,081,479 | 1,061,677 | (19,802) | |
11/10/2022 | Morgan Stanley & Co. | EUR | 1,546 | USD | 1,539 | 1,529 | (10) | |
11/10/2022 | UBS AG | EUR | 4,441,190 | USD | 4,462,290 | 4,391,355 | (70,935) | |
11/25/2022 | HSBC Bank plc | EUR | 1,710,000 | USD | 1,750,194 | 1,692,612 | (57,582) | |
12/19/2022 | JPMorgan Chase Bank N.A. | EUR | 3,880,000 | USD | 3,878,245 | 3,849,153 | (29,092) | |
Hong Kong Dollar/United States Dollar | ||||||||
11/10/2022 | JPMorgan Chase Bank N.A. | HKD | 8,200,000 | USD | 1,046,624 | 1,044,822 | (1,802) |
18 | 2022 Annual Report |
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Indian Rupee/United States Dollar | ||||||||
11/09/2022 | Goldman Sachs & Co. | INR | 46,000,000 | USD | 579,761 | $555,596 | $(24,165) | |
Japanese Yen/United States Dollar | ||||||||
11/10/2022 | Citibank N.A. | JPY | 24,000,000 | USD | 181,579 | 161,546 | (20,033) | |
11/10/2022 | HSBC Bank plc | JPY | 23,000,000 | USD | 162,559 | 154,815 | (7,744) | |
11/10/2022 | JPMorgan Chase Bank N.A. | JPY | 15,000,000 | USD | 104,716 | 100,966 | (3,750) | |
01/11/2023 | HSBC Bank plc | JPY | 99,800,000 | USD | 697,863 | 677,454 | (20,409) | |
01/11/2023 | JPMorgan Chase Bank N.A. | JPY | 343,800,000 | USD | 2,412,151 | 2,333,755 | (78,396) | |
01/11/2023 | Morgan Stanley & Co. | JPY | 189,000,000 | USD | 1,317,234 | 1,282,955 | (34,279) | |
New Taiwan Dollar/United States Dollar | ||||||||
11/10/2022 | Barclays Bank plc | TWD | 20,200,000 | USD | 676,558 | 626,673 | (49,885) | |
Singapore Dollar/United States Dollar | ||||||||
11/21/2022 | HSBC Bank plc | SGD | 1,310,000 | USD | 913,918 | 925,522 | 11,604 | |
11/21/2022 | JPMorgan Chase Bank N.A. | SGD | 5,490,000 | USD | 3,901,332 | 3,878,713 | (22,619) | |
South African Rand/United States Dollar | ||||||||
11/10/2022 | Morgan Stanley & Co. | ZAR | 2,200,000 | USD | 130,626 | 119,698 | (10,928) | |
South Korean Won/United States Dollar | ||||||||
11/09/2022 | JPMorgan Chase Bank N.A. | KRW | 690,000,000 | USD | 528,432 | 483,701 | (44,731) | |
Swiss Franc/United States Dollar | ||||||||
11/10/2022 | Goldman Sachs & Co. | CHF | 100,287 | USD | 102,547 | 100,239 | (2,308) | |
11/10/2022 | HSBC Bank plc | CHF | 270,000 | USD | 276,058 | 269,871 | (6,187) | |
11/10/2022 | JPMorgan Chase Bank N.A. | CHF | 240,000 | USD | 245,142 | 239,885 | (5,257) | |
12/23/2022 | UBS AG | CHF | 6,039,000 | USD | 6,268,888 | 6,069,813 | (199,075) | |
Thai Baht/United States Dollar | ||||||||
11/21/2022 | JPMorgan Chase Bank N.A. | THB | 70,200,000 | USD | 1,909,158 | 1,847,263 | (61,895) | |
11/21/2022 | UBS AG | THB | 18,600,000 | USD | 493,088 | 489,446 | (3,642) | |
$44,698,428 | $(742,561) |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Australian Dollar | ||||||||
12/09/2022 | Goldman Sachs & Co. | USD | 2,378,073 | AUD | 3,660,000 | $2,343,715 | $34,358 | |
12/09/2022 | Morgan Stanley & Co. | USD | 2,574,275 | AUD | 3,820,000 | 2,446,172 | 128,103 | |
12/09/2022 | Morgan Stanley & Co. | USD | 1,322,803 | AUD | 2,070,000 | 1,325,544 | (2,741) | |
United States Dollar/Brazilian Real | ||||||||
11/10/2022 | Goldman Sachs & Co. | USD | 211,555 | BRL | 1,100,000 | 212,601 | (1,046) | |
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 1,070,935 | BRL | 5,545,389 | 1,071,780 | (845) | |
11/10/2022 | UBS AG | USD | 714,945 | BRL | 3,682,279 | 711,689 | 3,256 | |
United States Dollar/British Pound | ||||||||
11/09/2022 | HSBC Bank plc | USD | 747,911 | GBP | 631,000 | 723,756 | 24,155 | |
11/09/2022 | Morgan Stanley & Co. | USD | 993,791 | GBP | 813,000 | 932,510 | 61,281 | |
11/09/2022 | UBS AG | USD | 1,389,329 | GBP | 1,270,000 | 1,456,688 | (67,359) | |
11/10/2022 | Barclays Bank plc | USD | 126,276 | GBP | 103,254 | 118,436 | 7,840 | |
11/10/2022 | Citibank N.A. | USD | 31,794 | GBP | 26,000 | 29,823 | 1,971 | |
11/10/2022 | HSBC Bank plc | USD | 370,172 | GBP | 314,457 | 360,692 | 9,480 | |
11/10/2022 | HSBC Bank plc | USD | 113,072 | GBP | 99,000 | 113,556 | (484) | |
12/08/2022 | Barclays Bank plc | USD | 1,867,966 | GBP | 1,600,000 | 1,836,803 | 31,163 | |
12/08/2022 | UBS AG | USD | 1,314,277 | GBP | 1,190,000 | 1,366,122 | (51,845) |
2022 Annual Report | 19 |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Canadian Dollar | ||||||||
11/10/2022 | Goldman Sachs & Co. | USD | 165,321 | CAD | 223,408 | $163,994 | $1,327 | |
11/10/2022 | HSBC Bank plc | USD | 21,937 | CAD | 28,611 | 21,002 | 935 | |
11/10/2022 | Morgan Stanley & Co. | USD | 245,820 | CAD | 316,617 | 232,414 | 13,406 | |
11/10/2022 | UBS AG | USD | 29,373 | CAD | 38,162 | 28,013 | 1,360 | |
United States Dollar/Chinese Renminbi | ||||||||
11/09/2022 | HSBC Bank plc | USD | 710,690 | CNY | 4,800,000 | 664,038 | 46,652 | |
11/18/2022 | HSBC Bank plc | USD | 2,166,340 | CNY | 14,701,000 | 2,030,458 | 135,882 | |
11/21/2022 | Citibank N.A. | USD | 3,790,732 | CNY | 26,500,000 | 3,658,123 | 132,609 | |
11/21/2022 | HSBC Bank plc | USD | 1,052,573 | CNY | 7,470,000 | 1,031,177 | 21,396 | |
11/22/2022 | Barclays Bank plc | USD | 517,555 | CNY | 3,498,000 | 482,785 | 34,770 | |
11/29/2022 | HSBC Bank plc | USD | 2,164,745 | CNY | 14,701,000 | 2,026,442 | 138,303 | |
United States Dollar/Danish Krone | ||||||||
11/10/2022 | Morgan Stanley & Co. | USD | 341,626 | DKK | 2,470,519 | 328,102 | 13,524 | |
United States Dollar/Euro | ||||||||
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 487,440 | EUR | 490,000 | 484,502 | 2,938 | |
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 251,212 | EUR | 260,000 | 257,082 | (5,870) | |
11/10/2022 | Morgan Stanley & Co. | USD | 17,231,904 | EUR | 16,708,825 | 16,521,332 | 710,572 | |
11/10/2022 | UBS AG | USD | 407,846 | EUR | 420,000 | 415,287 | (7,441) | |
11/25/2022 | Barclays Bank plc | USD | 1,718,413 | EUR | 1,710,000 | 1,692,612 | 25,801 | |
12/19/2022 | Morgan Stanley & Co. | USD | 3,069,549 | EUR | 3,150,000 | 3,124,957 | (55,408) | |
12/19/2022 | UBS AG | USD | 723,338 | EUR | 730,000 | 724,196 | (858) | |
United States Dollar/Hong Kong Dollar | ||||||||
11/10/2022 | Barclays Bank plc | USD | 1,045,742 | HKD | 8,200,000 | 1,044,822 | 920 | |
11/10/2022 | Goldman Sachs & Co. | USD | 109,821 | HKD | 860,269 | 109,613 | 208 | |
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 88,099 | HKD | 690,665 | 88,003 | 96 | |
11/10/2022 | UBS AG | USD | 48,191 | HKD | 377,762 | 48,133 | 58 | |
United States Dollar/Indian Rupee | ||||||||
11/09/2022 | HSBC Bank plc | USD | 573,197 | INR | 46,000,000 | 555,596 | 17,601 | |
United States Dollar/Japanese Yen | ||||||||
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 172,363 | JPY | 24,398,439 | 164,228 | 8,135 | |
11/10/2022 | Morgan Stanley & Co. | USD | 59,660 | JPY | 8,458,841 | 56,937 | 2,723 | |
11/10/2022 | UBS AG | USD | 2,113,164 | JPY | 275,370,344 | 1,853,539 | 259,625 | |
United States Dollar/New Taiwan Dollar | ||||||||
11/10/2022 | Goldman Sachs & Co. | USD | 642,882 | TWD | 20,200,000 | 626,673 | 16,209 | |
11/21/2022 | Citibank N.A. | USD | 1,878,372 | TWD | 58,800,000 | 1,823,745 | 54,627 | |
11/21/2022 | HSBC Bank plc | USD | 1,194,488 | TWD | 38,000,000 | 1,178,611 | 15,877 | |
11/21/2022 | UBS AG | USD | 500,354 | TWD | 15,900,000 | 493,156 | 7,198 | |
11/29/2022 | Barclays Bank plc | USD | 1,591,530 | TWD | 49,948,550 | 1,548,941 | 42,589 | |
12/23/2022 | HSBC Bank plc | USD | 2,015,368 | TWD | 64,091,450 | 1,990,147 | 25,221 | |
12/23/2022 | UBS AG | USD | 1,371,071 | TWD | 43,500,000 | 1,350,748 | 20,323 | |
United States Dollar/Norwegian krone | ||||||||
11/10/2022 | Barclays Bank plc | USD | 264,474 | NOK | 2,583,022 | 248,524 | 15,950 | |
United States Dollar/South African Rand | ||||||||
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 123,644 | ZAR | 2,200,000 | 119,698 | 3,946 | |
United States Dollar/South Korean Won | ||||||||
11/09/2022 | Goldman Sachs & Co. | USD | 495,100 | KRW | 690,000,000 | 483,701 | 11,399 |
20 | 2022 Annual Report |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Swedish Krona | ||||||||
12/23/2022 | Citibank N.A. | USD | 1,056,476 | SEK | 11,600,000 | $1,055,288 | $1,188 | |
12/23/2022 | Citibank N.A. | USD | 1,400,572 | SEK | 15,700,000 | 1,428,277 | (27,705) | |
12/23/2022 | Goldman Sachs & Co. | USD | 1,700,907 | SEK | 18,090,000 | 1,645,703 | 55,204 | |
12/23/2022 | Morgan Stanley & Co. | USD | 760,889 | SEK | 8,370,000 | 761,445 | (556) | |
United States Dollar/Swiss Franc | ||||||||
11/10/2022 | Barclays Bank plc | USD | 2,036 | CHF | 1,975 | 1,974 | 62 | |
11/10/2022 | Goldman Sachs & Co. | USD | 335,175 | CHF | 326,938 | 326,782 | 8,393 | |
11/10/2022 | JPMorgan Chase Bank N.A. | USD | 104,092 | CHF | 98,312 | 98,265 | 5,827 | |
11/10/2022 | Morgan Stanley & Co. | USD | 147,385 | CHF | 140,000 | 139,933 | 7,452 | |
United States Dollar/Thai Baht | ||||||||
11/10/2022 | Goldman Sachs & Co. | USD | 120,146 | THB | 4,344,732 | 114,224 | 5,922 | |
$68,293,109 | $1,945,677 |
At October 31, 2022, Fund's open forward foreign cross currency contracts were as follows: |
Purchase/Sale Settlement Date | Counterparty | Amount Purchased | Amount Sold | Contract Value | Fair Value | Unrealized Appreciation/ (Depreciation) | ||
Swiss Franc / British Pound | ||||||||
01/11/2023 | Morgan Stanley & Co. | CHF | 1,703,312 | GBP | 1,610,000 | $1,716,615 | $1,581,917 | $(134,698) |
01/11/2023 | UBS AG | CHF | 1,265,208 | GBP | 1,180,000 | 1,282,262 | 1,200,484 | (81,778) |
$2,782,401 | $(216,476) | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $2,378,668 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(1,392,028) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
At October 31, 2022, the Fund held the following centrally cleared credit default swaps: | ||||||||
Expiration Date | Notional Amount | Credit Index | Fixed Rate | Implied Credit Spread* | Frequency of Payments Made | Premiums Paid (Received) | Value | Unrealized Appreciation/ (Depreciation) |
Buy Protection: | ||||||||
12/20/2027 | 1,890,000 | CDX.NA.HY | Equal to (1.00%) | N/A | Quarterly | $(5,442) | $(16,342) | $(10,900) |
12/20/2027 | 10,800,000 | CDX.NA.HY | Equal to (1.00%) | N/A | Quarterly | (51,681) | (113,961) | (62,280) |
12/20/2027 | 6,720,000 | iTraxx Europe Crossover | Equal to (5.00%) | N/A | Quarterly | 266,989 | 372,382 | 105,393 |
$209,866 | $242,079 | $32,213 | ||||||
Sell Protection: | ||||||||
12/20/2027 | 23,260,000 | CDX.NA.HY | Equal to 1.00% | 0.90% | Quarterly | $24,845 | $158,995 | $134,150 |
12/20/2027 | 2,450,000 | iTraxx Europe Crossover | Equal to 5.00% | 5.56% | Quarterly | (85,839) | (124,158) | (38,319) |
12/20/2027 | 2,030,000 | iTraxx Europe Crossover | Equal to 5.00% | N/A | Quarterly | (38,232) | (69,989) | (31,757) |
$(99,226) | $(35,152) | $64,074 |
* | Implied credit spreads, represented in absolute terms, are utilized in determining the market value of credit default swaps agreements on corporate issues or sovereign issues and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made prior to entering into the agreement. For credit default swap with asset-backed securities or credit indices as the underlying assets, the quoted market prices and resulting market values serve as an indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
2022 Annual Report | 21 |
At October 31, 2022, the Fund held the following centrally cleared interest rate swaps: |
Currency | Notional Amount | Expiration Date | Counterparty | Receive (Pay) Floating Rate | Floating Rate Index | Fixed Rate | Frequency of Paid Payments Made | Premiums Paid (Received) | Value | Unrealized Appreciation/ (Depreciation) |
USD | 4,530,000 | 08/26/2052 | Morgan Stanley & Co. | Receive | 12-month SOFR | 2.73% | Annually | $- | $599,260 | $599,260 |
USD | 4,820,000 | 08/01/2027 | Morgan Stanley & Co. | Receive | 12-month SOFR | 2.44% | Annually | 263,997 | 582,953 | 318,956 |
$263,997 | $1,182,213 | $918,216 | ||||||||
USD | 10,100,000 | 08/01/2027 | Morgan Stanley & Co. | Pay | 12-month SOFR | 2.44% | Annually | - | (702,472) | (702,472) |
USD | 3,350,000 | 08/26/2052 | Morgan Stanley & Co. | Pay | 12-month SOFR | 2.73% | Annually | (139,014) | (576,168) | (437,154) |
$(139,014) | $(1,278,640) | $(1,139,626) | ||||||||
$124,983 | $(96,427) | $(221,410) |
At October 31, 2022, the Fund held the following over-the-counter total return swaps: | ||||||||
Currency | Notional Amount | Expiration Date | Receive (Pay) Total Return of Equity Index | Equity Index | Floating Rate Index | Frequency of Payments Made | Value | Unrealized Appreciation/ (Depreciation) |
USD | 3,652,025 | 04/05/2023 | Pay | S&P 500 Low Volatility Net Total Return Index | 1-month SOFR | Monthly | $220,202 | $220,202 |
USD | 2,528,400 | 03/06/2023 | Receive | MSCI World Consumer Staples Index | 1-month SOFR | Monthly | (117,906) | (117,906) |
USD | 4,881,454 | 03/31/2023 | Receive | MSCI World Quality Index | 1-month SOFR | Monthly | 11,471 | 11,471 |
$113,767 |
22 | 2022 Annual Report |
1 | Consumer Price Index – a measure of inflation. An index of the cost of all goods and services to a typical consumer. |
2 | Currency hedging – The use of derivative transactions to protect the value of an investment against fluctuations in exchange rates. (See also derivative.) |
3 | Overweight – A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
4 | Duration – A measure of the maturity of a bond or portfolio of bonds that takes into account the periodic coupon payments. It attempts to measure market risk, or volatility, in a bond by considering maturity and the time pattern of interest payments prior to repayment. Two bonds with the same term to maturity but different coupon rates will respond differently to changes in interest rates. So will bonds with the same coupon rate but different terms to maturity. The higher the duration, the greater a bond’s price-sensitivity to changes in yield. |
2022 Annual Report | 23 |
24 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (14.49%) | 0.33% | 2.18% |
w/SC2 | (17.02%) | (0.29%) | 1.87% | |
Institutional Class3 | w/o SC | (14.20%) | 0.60% | 2.46% |
1 | Returns prior to December 3, 2021 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 3.00% front-end sales charge was deducted. |
3 | Not subject to any sales charges. |
2022 Annual Report | 25 |
Asset Allocation | |
Corporate Bonds | 89.5% |
Short-Term Investment | 14.7% |
Exchange-Traded Funds | 5.0% |
Liabilities in Excess of Other Assets | (9.2%) |
100.0% |
Industries | |
Diversified Telecommunication Services | 7.1% |
Oil, Gas & Consumable Fuels | 6.5% |
Pharmaceutical | 5.2% |
Packaging & Containers | 5.1% |
Exchange-Traded Fund | 5.0% |
Energy Equipment & Services | 4.9% |
Media | 4.4% |
Healthcare Providers & Services | 4.4% |
Entertainment | 4.3% |
Commercial Services & Supplies | 3.5% |
Real Estate Investment Trust (REIT) Funds | 3.2% |
Auto Parts & Equipment | 3.1% |
Chemicals | 3.1% |
Aerospace & Defense | 2.6% |
Diversified Financial Services | 2.6% |
Leisure Time | 2.4% |
Metals & Mining | 2.1% |
Electric Utilities | 2.1% |
Retail | 2.0% |
Other, less than 2% each | 20.9% |
Short-Term Investment | 14.7% |
Liabilities in Excess of Other Assets | (9.2%) |
100.0% |
Top Ten Holdings | |
iShares iBoxx High Yield Corporate Bond ETF | 5.0% |
Teva Pharmaceutical Finance Netherlands III BV 10/01/2026 | 1.9% |
Iron Mountain, Inc. 07/15/2028 | 1.4% |
Petroleos Mexicanos 02/12/2028 | 1.3% |
Petrobras Global Finance BV 01/03/2031 | 1.1% |
Ball Corp. 08/15/2030 | 1.0% |
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 03/01/2029 | 1.0% |
Graphic Packaging International LLC 03/01/2029 | 1.0% |
Affinity Gaming 12/15/2027 | 1.0% |
Howmet Aerospace, Inc. 02/01/2037 | 0.9% |
Countries | |
United States | 60.7% |
United Kingdom | 5.1% |
Luxembourg | 3.2% |
Israel | 2.8% |
Mexico | 2.7% |
Germany | 2.7% |
Canada | 2.6% |
Brazil | 2.3% |
Netherlands | 2.3% |
Other, less than 2% each | 10.1% |
Short-Term Investment | 14.7% |
Liabilities in Excess of Other Assets | (9.2%) |
100.0% |
26 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—89.5% | |||
BRAZIL—2.3% | |||
Chemicals—0.7% | |||
Braskem Netherlands Finance BV, 4.50%, 01/10/2028(a) | $ | 810,000 | $ 703,291 |
Healthcare Providers & Services—0.5% | |||
Rede D'or Finance Sarl | |||
4.95%, 01/17/2028(a) | 380,000 | 336,775 | |
4.50%, 01/22/2030(a) | 204,000 | 168,300 | |
505,075 | |||
Oil, Gas & Consumable Fuels—1.1% | |||
Petrobras Global Finance BV, 5.60%, 01/03/2031 | 1,236,000 | 1,122,597 | |
Total Brazil | 2,330,963 | ||
CANADA—2.6% | |||
Chemicals—0.5% | |||
NOVA Chemicals Corp., 4.25%, 05/15/2029(a) | 638,000 | 520,311 | |
Diversified Telecommunication Services—0.5% | |||
Rogers Communications, Inc., (fixed rate to 03/15/2027, variable rate thereafter), 5.25%, 03/15/2082(a) | 589,000 | 515,680 | |
Environmental Control—0.8% | |||
GFL Environmental, Inc. | |||
5.13%, 12/15/2026(a) | 562,000 | 534,956 | |
4.75%, 06/15/2029(a) | 367,000 | 319,869 | |
854,825 | |||
Machinery-Diversified—0.6% | |||
Titan Acquisition Ltd. / Titan Co-Borrower LLC, 7.75%, 04/15/2026(a) | 720,000 | 588,600 | |
Oil & Gas Services—0.2% | |||
Enerflex Ltd., 9.00%, 10/15/2027(a) | 194,000 | 188,723 | |
Total Canada | 2,668,139 | ||
CHINA—0.1% | |||
Real Estate—0.1% | |||
China Evergrande Group, 9.50%, 04/11/2022(a)(b)(c) | 465,000 | 16,268 | |
Kaisa Group Holdings Ltd. | |||
9.75%, 09/28/2023(a)(b)(c) | 230,000 | 14,334 | |
9.38%, 06/30/2024(a)(b) | 495,000 | 33,412 | |
Zhenro Properties Group Ltd. | |||
7.88%, 04/14/2024(a)(b)(c) | 200,000 | 3,862 | |
7.10%, 09/10/2024(a)(b)(c) | 429,000 | 8,598 | |
76,474 | |||
FRANCE—1.5% | |||
Diversified Telecommunication Services—0.5% | |||
Iliad Holding SASU, 6.50%, 10/15/2026(a) | 532,000 | 492,696 | |
Electric Utilities—0.4% | |||
Electricite de France SA |
Shares or Principal Amount | Value | ||
(fixed rate to 01/29/2025, variable rate thereafter), 5.38%, 01/29/2025(a)(d) | EUR | 200,000 | $ 181,280 |
(fixed rate to 01/22/2026, variable rate thereafter), 5.00%, 01/22/2026(a)(d) | 300,000 | 252,004 | |
433,284 | |||
Healthcare Providers & Services—0.6% | |||
Chrome Bidco SASU, 3.50%, 05/31/2028(a) | 800,000 | 638,495 | |
Total France | 1,564,475 | ||
GERMANY—2.7% | |||
Apparel—0.4% | |||
CT Investment GmbH, 5.50%, 04/15/2026(a) | 490,000 | 397,534 | |
Auto Parts & Equipment—0.9% | |||
Schaeffler AG | |||
2.88%, 03/26/2027(a) | 350,000 | 303,832 | |
3.38%, 10/12/2028(a) | 200,000 | 166,998 | |
ZF Europe Finance BV | |||
2.00%, 02/23/2026(a) | 200,000 | 171,660 | |
2.50%, 10/23/2027(a) | 300,000 | 238,565 | |
881,055 | |||
Building Materials—0.3% | |||
HT Troplast GmbH, 9.25%, 07/15/2025(a) | 400,000 | 343,871 | |
Commercial Banks—0.3% | |||
Deutsche Bank AG, (fixed rate to 04/30/2026, variable rate thereafter), 7.13%, 04/30/2026(a)(d) | GBP | 300,000 | 287,273 |
Commercial Services & Supplies—0.4% | |||
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/2026(a) | EUR | 395,639 | 365,154 |
Machinery-Diversified—0.1% | |||
TK Elevator Midco GmbH, 4.38%, 07/15/2027(a) | 176,000 | 147,042 | |
Pharmaceutical—0.3% | |||
Gruenenthal GmbH | |||
3.63%, 11/15/2026(a) | 199,000 | 174,386 | |
4.13%, 05/15/2028(a) | 230,000 | 187,630 | |
362,016 | |||
Total Germany | 2,783,945 | ||
ISRAEL—2.8% | |||
Pharmaceutical—2.8% | |||
Teva Pharmaceutical Finance Netherlands III BV | |||
7.13%, 01/31/2025 | $ | 573,000 | 567,769 |
3.15%, 10/01/2026 | 2,280,000 | 1,926,600 | |
4.75%, 05/09/2027 | 407,000 | 359,177 | |
2,853,546 | |||
ITALY—1.5% | |||
Commercial Banks—0.3% | |||
UniCredit SpA, (fixed rate to 06/03/2023, variable rate thereafter), 6.63%, 06/03/2023(a)(d) | EUR | 330,000 | 320,415 |
Commercial Services & Supplies—0.6% | |||
Autostrade per l'Italia SpA, 2.00%, 12/04/2028(a) | 750,000 | 612,628 |
2022 Annual Report | 27 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
ITALY (continued) | |||
Entertainment—0.4% | |||
Lottomatica SpA/Roma, 6.25%, 07/15/2025(a) | EUR | 400,000 | $ 373,962 |
Hand/Machine Tools—0.2% | |||
IMA Industria Macchine Automatiche SpA, 3.75%, 01/15/2028(a) | 231,000 | 186,982 | |
Total Italy | 1,493,987 | ||
JERSEY—0.4% | |||
Commercial Banks—0.4% | |||
HSBC Bank Capital Funding Sterling 1 LP, FRN, 5.84%, 11/05/2031(a)(d) | GBP | 320,000 | 380,914 |
LUXEMBOURG—3.2% | |||
Biotechnology—0.4% | |||
Cidron Aida Finco Sarl | |||
5.00%, 04/01/2028(a) | EUR | 291,000 | 225,163 |
6.25%, 04/01/2028(a) | GBP | 253,000 | 220,652 |
445,815 | |||
Commercial Services & Supplies—0.6% | |||
Albion Financing 1 SARL/Aggreko Holdings, Inc., 5.25%, 10/15/2026(a) | EUR | 246,000 | 207,544 |
Albion Financing 2Sarl, 8.75%, 04/15/2027(a) | $ | 519,000 | 435,960 |
643,504 | |||
Diversified Financial Services—0.4% | |||
Garfunkelux Holdco 3 SA | |||
6.75%, 11/01/2025(a) | EUR | 231,000 | 162,676 |
7.75%, 11/01/2025(a) | GBP | 240,000 | 195,861 |
358,537 | |||
Diversified Telecommunication Services—1.0% | |||
Altice France Holding SA, 8.00%, 05/15/2027(a) | EUR | 533,000 | 383,201 |
Matterhorn Telecom SA, 3.13%, 09/15/2026(a) | 712,000 | 616,665 | |
999,866 | |||
Energy-Alternate Sources—0.4% | |||
Cullinan Holdco Scsp, 4.63%, 10/15/2026(a) | 462,000 | 378,224 | |
Entertainment—0.0% | |||
LHMC Finco 2 Sarl, PIK, 7.25%, 10/02/2025(a)(e) | 11,698 | 9,867 | |
Machinery-Diversified—0.0% | |||
Galapagos SA, 5.38%, 06/15/2021(a)(b)(f)(g) | 60,500 | – | |
Media—0.3% | |||
Altice Financing SA, 5.75%, 08/15/2029(a) | $ | 449,000 | 352,357 |
Packaging & Containers—0.1% | |||
Kleopatra Finco Sarl, 4.25%, 03/01/2026(a) | EUR | 113,000 | 91,705 |
Total Luxembourg | 3,279,875 | ||
MEXICO—2.7% | |||
Chemicals—0.1% | |||
Braskem Idesa SAPI, 6.99%, 02/20/2032(a) | $ | 200,000 | 133,776 |
Shares or Principal Amount | Value | ||
Diversified Telecommunication Services—0.6% | |||
Sixsigma Networks Mexico SA de CV, 7.50%, 05/02/2025(a) | $ | 750,000 | $ 621,099 |
Oil, Gas & Consumable Fuels—2.0% | |||
Petroleos Mexicanos | |||
6.49%, 01/23/2027 | 300,000 | 261,300 | |
5.35%, 02/12/2028 | 1,648,000 | 1,313,426 | |
6.70%, 02/16/2032(h) | 610,000 | 461,313 | |
2,036,039 | |||
Total Mexico | 2,790,914 | ||
NETHERLANDS—2.3% | |||
Chemicals—0.5% | |||
OCI NV, 3.63%, 10/15/2025(a) | EUR | 517,500 | 499,887 |
Commercial Banks—0.3% | |||
Stichting AK Rabobank Certificaten, 6.50%, 12/29/2049(a)(d)(i) | 355,750 | 331,720 | |
Home Furnishings—0.2% | |||
Nobel Bidco BV, 3.13%, 06/15/2028(a) | 340,000 | 198,243 | |
Internet—0.1% | |||
United Group BV, 5.25%, 02/01/2030(a) | 123,000 | 86,304 | |
Media—0.6% | |||
Summer BidCo BV, PIK, 9.00%, 11/15/2025(a)(e) | 367,062 | 267,985 | |
VZ Vendor Financing II BV, 2.88%, 01/15/2029(a) | 382,000 | 278,415 | |
546,400 | |||
Packaging & Containers—0.6% | |||
Trivium Packaging Finance BV, 5.50%, 08/15/2026(a) | $ | 690,000 | 634,593 |
Total Netherlands | 2,297,147 | ||
NIGERIA—0.6% | |||
Engineering & Construction—0.6% | |||
IHS Netherlands Holdco BV, 8.00%, 09/18/2027(a) | 760,000 | 586,629 | |
PANAMA—0.4% | |||
Diversified Telecommunication Services—0.4% | |||
C&W Senior Financing DAC, 6.88%, 09/15/2027(a) | 436,000 | 378,091 | |
REPUBLIC OF IRELAND—0.1% | |||
Media—0.1% | |||
Virgin Media Vendor Financing Notes III DAC, 4.88%, 07/15/2028(a) | GBP | 100,000 | 91,601 |
SOUTH AFRICA—0.4% | |||
Diversified Telecommunication Services—0.4% | |||
Liquid Telecommunications Financing PLC, 5.50%, 09/04/2026(a) | $ | 584,000 | 402,960 |
28 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
SPAIN—1.4% | |||
Commercial Banks—0.2% | |||
Banco Bilbao Vizcaya Argentaria SA, (fixed rate to 03/05/2025, variable rate thereafter), Series 9, 6.50%, 03/05/2025(d) | $ | 200,000 | $ 178,652 |
Diversified Telecommunication Services—0.9% | |||
Lorca Telecom Bondco SA, 4.00%, 09/18/2027(a) | EUR | 500,000 | 433,456 |
Telefonica Europe BV, (fixed rate to 06/22/2026, variable rate thereafter), Series ., 3.88%, 06/22/2026(a)(d) | 500,000 | 442,588 | |
876,044 | |||
Entertainment—0.2% | |||
Cirsa Finance International Sarl, 6.25%, 12/20/2023(a) | 254,751 | 251,096 | |
Pharmaceutical—0.1% | |||
Grifols SA, 2.25%, 11/15/2027(a) | 200,000 | 162,817 | |
Total Spain | 1,468,609 | ||
SWEDEN—1.1% | |||
Commercial Services & Supplies—0.5% | |||
Verisure Holding AB, 3.25%, 02/15/2027(a) | 333,000 | 279,510 | |
Verisure Midholding AB, 5.25%, 02/15/2029(a) | 275,000 | 208,254 | |
487,764 | |||
Diversified Financial Services—0.6% | |||
Intrum AB, 4.88%, 08/15/2025(a) | 700,000 | 623,477 | |
Total Sweden | 1,111,241 | ||
SWITZERLAND—0.8% | |||
Chemicals—0.6% | |||
Consolidated Energy Finance SA, 5.63%, 10/15/2028(a) | $ | 652,000 | 547,478 |
Retail—0.2% | |||
Dufry One BV, 2.50%, 10/15/2024(a) | EUR | 250,000 | 235,945 |
Total Switzerland | 783,423 | ||
TURKEY—0.4% | |||
Diversified Telecommunication Services—0.4% | |||
Turk Telekomunikasyon AS, 4.88%, 06/19/2024(a) | $ | 410,000 | 360,800 |
UNITED KINGDOM—5.1% | |||
Aerospace & Defense—0.6% | |||
Rolls-Royce PLC, 4.63%, 02/16/2026(a) | EUR | 680,000 | 640,943 |
Diversified Financial Services—0.4% | |||
Jerrold Finco PLC | |||
4.88%, 01/15/2026(a) | GBP | 134,000 | 126,394 |
5.25%, 01/15/2027(a) | 306,000 | 274,771 | |
401,165 |
Shares or Principal Amount | Value | ||
Diversified Telecommunication Services—0.4% | |||
TalkTalk Telecom Group Ltd., 3.88%, 02/20/2025(a) | GBP | 500,000 | $ 452,986 |
Entertainment—0.5% | |||
Pinewood Finance Co. Ltd., 3.25%, 09/30/2025(a) | 500,000 | 498,858 | |
Food & Staples—0.8% | |||
eG Global Finance PLC, 4.38%, 02/07/2025(a) | EUR | 600,000 | 508,370 |
Very Group Funding PLC, 6.50%, 08/01/2026(a) | GBP | 439,000 | 341,084 |
849,454 | |||
Food Products—0.4% | |||
Bellis Acquisition Co. PLC | |||
3.25%, 02/16/2026(a) | 278,000 | 259,006 | |
4.50%, 02/16/2026(a) | 106,000 | 102,268 | |
361,274 | |||
Media—0.5% | |||
Virgin Media Vendor Financing Notes III DAC, 4.88%, 07/15/2028(a) | 544,000 | 498,307 | |
Oil, Gas & Consumable Fuels—0.6% | |||
Ithaca Energy North Sea PLC, 9.00%, 07/15/2026(a) | $ | 581,000 | 573,552 |
Pharmaceutical—0.6% | |||
180 Medical, Inc., 3.88%, 10/15/2029(a) | 769,000 | 649,805 | |
Water Utility—0.3% | |||
Thames Water Kemble Finance PLC, 4.63%, 05/19/2026(a) | GBP | 300,000 | 282,493 |
Total United Kingdom | 5,208,837 | ||
UNITED STATES—55.7% | |||
Advertising—0.6% | |||
Summer BC Bidco B LLC, 5.50%, 10/31/2026(a) | $ | 721,000 | 573,780 |
Aerospace & Defense—2.1% | |||
Boeing Co., 5.15%, 05/01/2030 | 817,000 | 754,895 | |
Howmet Aerospace, Inc. | |||
6.88%, 05/01/2025 | 43,000 | 43,955 | |
3.00%, 01/15/2029 | 455,000 | 378,733 | |
5.95%, 02/01/2037 | 1,052,000 | 963,694 | |
2,141,277 | |||
Agriculture—1.0% | |||
Darling Ingredients, Inc., 6.00%, 06/15/2030(a) | 642,000 | 617,925 | |
Turning Point Brands, Inc., 5.63%, 02/15/2026(a) | 503,000 | 439,710 | |
1,057,635 | |||
Apparel—0.6% | |||
Wolverine World Wide, Inc., 4.00%, 08/15/2029(a) | 818,000 | 646,220 | |
Auto Manufacturers—1.7% | |||
Ford Motor Co. | |||
9.63%, 04/22/2030 | 422,000 | 471,078 | |
6.10%, 08/19/2032 | 558,000 | 510,740 |
2022 Annual Report | 29 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UNITED STATES (continued) | |||
Ford Motor Credit Co. LLC | |||
4.54%, 03/06/2025 | GBP | 162,000 | $ 171,233 |
4.95%, 05/28/2027 | $ | 364,000 | 333,227 |
General Motors Financial Co., Inc., 5.00%, 04/09/2027 | 319,000 | 301,481 | |
1,787,759 | |||
Auto Parts & Equipment—2.1% | |||
Adient Global Holdings Ltd. | |||
3.50%, 08/15/2024(a) | EUR | 503,000 | 469,750 |
4.88%, 08/15/2026(a) | $ | 398,000 | 356,210 |
Goodyear Europe BV, 2.75%, 08/15/2028(a) | EUR | 352,000 | 278,538 |
Goodyear Tire & Rubber Co. (The) | |||
9.50%, 05/31/2025 | $ | 604,000 | 627,697 |
5.00%, 07/15/2029 | 115,000 | 99,722 | |
5.25%, 07/15/2031 | 358,000 | 303,298 | |
2,135,215 | |||
Building Materials—1.1% | |||
Builders FirstSource, Inc., 4.25%, 02/01/2032(a) | 273,000 | 218,454 | |
MIWD Holdco II LLC / MIWD Finance Corp., 5.50%, 02/01/2030(a) | 396,000 | 305,447 | |
New Enterprise Stone & Lime Co., Inc., 5.25%, 07/15/2028(a) | 672,000 | 584,640 | |
1,108,541 | |||
Chemicals—0.7% | |||
ASP Unifrax Holdings, Inc., 5.25%, 09/30/2028(a) | 272,000 | 216,172 | |
Celanese US Holdings LLC | |||
6.17%, 07/15/2027 | 386,000 | 364,187 | |
6.38%, 07/15/2032 | 162,000 | 147,401 | |
727,760 | |||
Coal—0.9% | |||
SunCoke Energy, Inc., 4.88%, 06/30/2029(a) | 1,153,000 | 945,460 | |
Commercial Services & Supplies—1.4% | |||
Avis Budget Car Rental LLC / Avis Budget Finance, Inc., 5.38%, 03/01/2029(a)(j) | 1,125,000 | 974,559 | |
Cimpress PLC, 7.00%, 06/15/2026(a) | 779,000 | 465,452 | |
1,440,011 | |||
Computers & Peripherals—1.0% | |||
Banff Merger Sub, Inc., 8.38%, 09/01/2026(a) | EUR | 325,000 | 295,138 |
Condor Merger Sub, Inc., 7.38%, 02/15/2030(a) | $ | 465,000 | 384,589 |
Virtusa Corp., 7.13%, 12/15/2028(a) | 517,000 | 370,856 | |
1,050,583 | |||
Diversified Financial Services—1.2% | |||
Coinbase Global, Inc. | |||
3.38%, 10/01/2028(a) | 519,000 | 339,225 |
Shares or Principal Amount | Value | ||
3.63%, 10/01/2031(a) | $ | 459,000 | $ 271,792 |
Encore Capital Group, Inc., 4.88%, 10/15/2025(a) | EUR | 700,000 | 633,631 |
1,244,648 | |||
Diversified Telecommunication Services—2.1% | |||
Frontier Communications Holdings LLC | |||
6.00%, 01/15/2030(a) | $ | 745,000 | 582,590 |
8.75%, 05/15/2030(a) | 256,000 | 261,440 | |
GoTo Group, Inc., 5.50%, 09/01/2027(a) | 638,000 | 369,874 | |
Lumen Technologies, Inc., 4.50%, 01/15/2029(a) | 500,000 | 352,476 | |
T-Mobile USA, Inc., 3.50%, 04/15/2031 | 633,000 | 532,231 | |
2,098,611 | |||
Electric Utilities—1.7% | |||
NRG Energy, Inc. | |||
3.38%, 02/15/2029(a) | 1,035,000 | 862,125 | |
3.63%, 02/15/2031(a) | 241,000 | 191,780 | |
Vistra Operations Co. LLC | |||
5.63%, 02/15/2027(a) | 504,000 | 480,453 | |
4.38%, 05/01/2029(a) | 221,000 | 189,016 | |
1,723,374 | |||
Energy Equipment & Services—5.1% | |||
Cheniere Energy Partners LP | |||
4.50%, 10/01/2029 | 831,000 | 733,731 | |
4.00%, 03/01/2031 | 177,000 | 149,226 | |
EnLink Midstream LLC, 6.50%, 09/01/2030(a) | 597,000 | 586,553 | |
Hess Midstream Operations LP | |||
5.63%, 02/15/2026(a) | 398,000 | 390,346 | |
4.25%, 02/15/2030(a) | 547,000 | 467,767 | |
5.50%, 10/15/2030(a) | 102,000 | 92,024 | |
ITT Holdings LLC, 6.50%, 08/01/2029(a) | 688,000 | 552,811 | |
Rattler Midstream LP, 5.63%, 07/15/2025(a) | 716,000 | 736,141 | |
Venture Global Calcasieu Pass LLC | |||
3.88%, 08/15/2029(a) | 255,000 | 218,663 | |
4.13%, 08/15/2031(a) | 643,000 | 548,177 | |
3.88%, 11/01/2033(a) | 410,000 | 329,025 | |
Western Midstream Operating LP | |||
3.95%, 06/01/2025 | 263,000 | 249,398 | |
4.65%, 07/01/2026 | 156,000 | 147,810 | |
5,201,672 | |||
Engineering & Construction—0.5% | |||
VM Consolidated, Inc., 5.50%, 04/15/2029(a) | 551,000 | 480,998 | |
Entertainment—3.0% | |||
Affinity Gaming, 6.88%, 12/15/2027(a) | 1,155,000 | 964,139 | |
CCM Merger, Inc., 6.38%, 05/01/2026(a) | 511,000 | 466,104 | |
Cedar Fair LP / Canada's Wonderland Co. / Magnum Management Corp. / Millennium Op, 6.50%, 10/01/2028 | 499,000 | 467,566 |
30 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UNITED STATES (continued) | |||
International Game Technology PLC, 3.50%, 06/15/2026(a) | EUR | 847,000 | $ 789,796 |
Six Flags Theme Parks, Inc., 7.00%, 07/01/2025(a) | $ | 372,000 | 375,638 |
3,063,243 | |||
Environmental Control—0.5% | |||
Clean Harbors, Inc., 4.88%, 07/15/2027(a) | 560,000 | 526,982 | |
Food & Staples—0.3% | |||
Michaels Cos., Inc., 5.25%, 05/01/2028(a) | 491,000 | 348,679 | |
Food Products—0.6% | |||
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc. | |||
5.13%, 02/01/2028(a) | 245,000 | 227,771 | |
5.75%, 04/01/2033(a) | 391,000 | 352,346 | |
580,117 | |||
Healthcare Providers & Services—3.3% | |||
Centene Corp., 4.25%, 12/15/2027 | 646,000 | 595,935 | |
Encompass Health Corp., 4.63%, 04/01/2031 | 581,000 | 479,325 | |
HCA, Inc., 5.63%, 09/01/2028 | 932,000 | 895,347 | |
IQVIA, Inc., 1.75%, 03/15/2026(a) | EUR | 615,000 | 556,105 |
Tenet Healthcare Corp. | |||
4.63%, 07/15/2024 | $ | 520,000 | 507,000 |
6.13%, 06/15/2030(a) | 328,000 | 302,790 | |
3,336,502 | |||
Home Builders—0.3% | |||
Adams Homes, Inc., 7.50%, 02/15/2025(a) | 443,000 | 358,407 | |
Home Furnishings—0.6% | |||
Tempur Sealy International, Inc., 3.88%, 10/15/2031(a) | 785,000 | 589,425 | |
Housewares—0.4% | |||
Newell Brands, Inc., 4.45%, 04/01/2026 | 452,000 | 420,609 | |
Internet—1.2% | |||
Netflix, Inc., 4.88%, 04/15/2028 | 941,000 | 893,018 | |
Photo Holdings Merger Sub, Inc., 8.50%, 10/01/2026(a) | 221,000 | 145,434 | |
Shutterfly, Inc., 2021 Term Loan, 8.80%, 09/25/2026(k) | 247,500 | 150,203 | |
1,188,655 | |||
Leisure Time—2.4% | |||
Carnival Corp. | |||
10.50%, 02/01/2026(a) | 288,000 | 282,228 | |
6.00%, 05/01/2029(a) | 525,000 | 348,215 | |
MajorDrive Holdings IV LLC, 6.38%, 06/01/2029(a) | 557,000 | 392,518 | |
NCL Corp. Ltd. | |||
5.88%, 02/15/2027(a) | 310,000 | 276,675 | |
7.75%, 02/15/2029(a) | 117,000 | 93,206 | |
NCL Finance Ltd., 6.13%, 03/15/2028(a) | 131,000 | 101,853 | |
Royal Caribbean Cruises Ltd. | |||
11.50%, 06/01/2025(a) | 209,000 | 225,087 |
Shares or Principal Amount | Value | ||
5.50%, 04/01/2028(a) | $ | 271,000 | $ 208,670 |
Viking Cruises Ltd., 13.00%, 05/15/2025(a) | 465,000 | 499,875 | |
2,428,327 | |||
Lodging—0.5% | |||
Travel & Leisure Co., 4.63%, 03/01/2030(a) | 590,000 | 476,257 | |
Media—3.0% | |||
CCO Holdings LLC / CCO Holdings Capital Corp. | |||
4.25%, 02/01/2031(a) | 1,206,000 | 952,740 | |
4.25%, 01/15/2034(a) | 1,126,000 | 827,610 | |
CSC Holdings LLC, 5.75%, 01/15/2030(a) | 1,113,000 | 851,445 | |
Univision Communications, Inc., 7.38%, 06/30/2030(a) | 424,000 | 410,220 | |
3,042,015 | |||
Metal Fabricate/Hardware—0.3% | |||
Advanced Drainage Systems, Inc., 6.38%, 06/15/2030(a) | 297,000 | 287,018 | |
Metals & Mining—0.7% | |||
Novelis Corp., 3.25%, 11/15/2026(a) | 769,000 | 673,057 | |
Oil & Gas Services—0.6% | |||
Weatherford International Ltd., 8.63%, 04/30/2030(a) | 656,000 | 618,280 | |
Oil, Gas & Consumable Fuels—2.7% | |||
Chesapeake Energy Corp., 6.75%, 04/15/2029(a) | 490,000 | 479,942 | |
CNX Resources Corp., 7.38%, 01/15/2031(a) | 416,000 | 412,951 | |
Hilcorp Energy I LP / Hilcorp Finance Co. | |||
5.75%, 02/01/2029(a) | 539,000 | 493,185 | |
6.00%, 02/01/2031(a) | 194,000 | 176,041 | |
Occidental Petroleum Corp., 6.63%, 09/01/2030 | 298,000 | 309,936 | |
Southwestern Energy Co., 4.75%, 02/01/2032 | 788,000 | 680,202 | |
Viper Energy Partners LP, 5.38%, 11/01/2027(a) | 179,000 | 168,363 | |
2,720,620 | |||
Packaging & Containers—4.4% | |||
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal Packaging Finance PLC, 6.00%, 06/15/2027(a) | 620,000 | 594,933 | |
Ball Corp. | |||
2.88%, 08/15/2030 | 1,336,000 | 1,037,538 | |
3.13%, 09/15/2031 | 316,000 | 241,961 | |
Clydesdale Acquisition Holdings, Inc. | |||
6.63%, 04/15/2029(a) | 85,000 | 80,699 | |
8.75%, 04/15/2030(a) | 111,000 | 97,541 | |
Graphic Packaging International LLC | |||
3.50%, 03/01/2029(a) | 1,148,000 | 969,608 | |
3.75%, 02/01/2030(a) | 1,113,000 | 956,913 | |
Sealed Air Corp., 5.00%, 04/15/2029(a) | 533,000 | 486,176 | |
4,465,369 |
2022 Annual Report | 31 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UNITED STATES (continued) | |||
Pharmaceutical—1.3% | |||
Perrigo Finance Unlimited Co., 4.40%, 06/15/2030 | $ | 545,000 | $ 455,424 |
Viatris, Inc., 2.70%, 06/22/2030 | 1,132,000 | 846,683 | |
1,302,107 | |||
Real Estate Investment Trust (REIT) Funds—3.2% | |||
GLP Capital, LP/GLP Financing II, Inc. REIT, 5.75%, 06/01/2028 | 951,000 | 882,198 | |
Iron Mountain, Inc., 5.00%, 07/15/2028(a) | 1,537,000 | 1,375,000 | |
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer | |||
7.50%, 06/01/2025(a) | 137,000 | 137,343 | |
4.88%, 05/15/2029(a) | 491,000 | 418,673 | |
Starwood Property Trust, Inc., 3.63%, 07/15/2026(a) | 471,000 | 409,770 | |
3,222,984 | |||
Retail—1.9% | |||
Academy Ltd., 6.00%, 11/15/2027(a) | 899,000 | 843,936 | |
Macy's Retail Holdings LLC | |||
5.88%, 04/01/2029(a) | 472,000 | 407,640 | |
5.88%, 03/15/2030(a) | 16,000 | 13,433 | |
6.13%, 03/15/2032(a) | 49,000 | 40,713 | |
Staples, Inc., 7.50%, 04/15/2026(a) | 737,000 | 640,143 | |
1,945,865 | |||
Software—0.7% | |||
Consensus Cloud Solutions, Inc. | |||
6.00%, 10/15/2026(a) | 215,000 | 193,661 | |
6.50%, 10/15/2028(a) | 607,000 | 535,788 | |
729,449 | |||
Total United States | 56,687,511 | ||
ZAMBIA—1.4% | |||
Metals & Mining—1.4% | |||
First Quantum Minerals Ltd. | |||
6.50%, 03/01/2024(a) | 539,000 | 528,585 | |
6.88%, 03/01/2026(a) | 977,000 | 916,817 | |
1,445,402 | |||
Total Corporate Bonds | 91,045,483 | ||
EXCHANGE-TRADED FUNDS—5.0% | |||
iShares iBoxx High Yield Corporate Bond ETF(j) | 68,890 | 5,058,593 | |
Total Exchange-Traded Funds | 5,058,593 |
Shares or Principal Amount | Value | ||
SHORT-TERM INVESTMENT—14.7% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(l) | 14,966,734 | $ 14,966,734 | |
Total Short-Term Investment | 14,966,734 | ||
Total Investments (Cost $128,084,916)(m)—109.2% | 111,070,810 | ||
Liabilities in Excess of Other Assets—(9.2%) | (9,362,730) | ||
Net Assets—100.0% | $101,708,080 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Security is in default. |
(c) | Illiquid security. |
(d) | Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely. The maturity date presented for these instruments represents the next call/put date. |
(e) | Payment-in-kind security for which part of the income earned may be paid as additional principal. |
(f) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(g) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(h) | Sinkable security. |
(i) | Step bond. Rate disclosed is as of October 31, 2022. |
(j) | All or a portion of the securities are on loan. The total value of all securities on loan is $2,282,069. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales. See Note 2(i) of the accompanying Notes to Financial Statements. |
(k) | Variable or Floating Rate security. Rate disclosed is as of October 31, 2022. |
(l) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(m) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
ETF | Exchange-Traded Fund |
EUR | Euro Currency |
FRN | Floating Rate Note |
GBP | British Pound Sterling |
PIK | Payment-In-Kind |
PLC | Public Limited Company |
REIT | Real Estate Investment Trust |
USD | U.S. Dollar |
32 | 2022 Annual Report |
At October 31, 2022, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Euro/United States Dollar | ||||||||
01/19/2023 | JPMorgan Chase Bank N.A. | EUR | 60,000 | USD | 59,504 | $59,687 | $183 | |
01/19/2023 | UBS AG | EUR | 129,624 | USD | 131,198 | 128,947 | (2,251) | |
$188,634 | $(2,068) |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/British Pound | ||||||||
01/19/2023 | Morgan Stanley & Co. | USD | 3,919,628 | GBP | 3,526,000 | $4,054,703 | $(135,075) | |
01/19/2023 | Royal Bank of Canada | USD | 171,586 | GBP | 151,000 | 173,642 | (2,056) | |
United States Dollar/Euro | ||||||||
01/19/2023 | Morgan Stanley & Co. | USD | 882,436 | EUR | 880,934 | 876,332 | 6,104 | |
01/19/2023 | Morgan Stanley & Co. | USD | 187,614 | EUR | 189,185 | 188,197 | (583) | |
01/19/2023 | UBS AG | USD | 13,246,945 | EUR | 13,513,000 | 13,442,408 | (195,463) | |
$18,735,282 | $(327,073) | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $6,287 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(335,428) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
2022 Annual Report | 33 |
1 | The Bloomberg Municipal Bond Index tracks the performance of investment-grade, tax-exempt bonds with a maturity of at least one year. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | S&P Global Ratings’ credit ratings express the agency’s opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Typically, ratings are expressed as letter grades that range, for example, from AAA to D to communicate the agency’s opinion of relative level of credit risk. Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. |
5 | Coupon – The interest rate stated on a bond when it’s issued. Typically coupons are paid semi-annually |
6 | Volatility – If the price of a fund or asset moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
7 | Net asset value (NAV) – A key measure of the value of a company, fund or trust – the total value of assets less liabilities, divided by the number of shares. |
8 | Duration – A measure of the maturity of a bond or portfolio of bonds that takes into account the periodic coupon payments. It attempts to measure market risk, or volatility, in a bond by considering maturity and the time pattern of interest payments prior to repayment. Two bonds with the same term to maturity but different coupon rates will respond differently to changes in interest rates. So will bonds with the same coupon rate but different terms to maturity. The higher the duration, the greater a bond’s price-sensitivity to changes in yield. |
34 | 2022 Annual Report |
9 | Underweight – A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2022 Annual Report | 35 |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | (11.24%) | (0.27%) | 0.71% |
w/SC2 | (13.44%) | (0.77%) | 0.45% | |
Class C | w/o SC | (11.82%) | (0.99%) | (0.03%) |
w/SC3 | (12.68%) | (0.99%) | (0.03%) | |
Institutional Service Class4 | w/o SC | (10.98%) | 0.01% | 0.96% |
Institutional Class4,5 | w/o SC | (10.99%) | (0.01%) | 0.97% |
1 | The Fund changed its investment strategy effective February 28, 2019. Performance information for periods prior to February 28, 2019 does not reflect such investment policy. |
2 | A 2.50% front-end sales charge was deducted. Prior to February 28, 2019 the front-end sales charge was 4.25%. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charge. Returns before the first offering of the Institutional Class and Institutional Service Class shares (February 25, 2013) are based on the previous performance of Class D shares. Returns of each class have not been adjusted to reflect the expenses applicable to the respective classes. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what the Institutional Service Class, and Institutional Class shares would have produced because all classes invest in the same portfolio of securities. Returns for the Institutional Service Class, and Institutional Class shares would only differ to the extent of the differences in expenses of the classes. |
5 | Effective February 25, 2013, all Class D shares of the Fund were converted into Institutional Class shares of the Fund. |
36 | 2022 Annual Report |
Asset Allocation | |
Municipal Bonds | 98.3% |
Short-Term Investment | 0.3% |
Other Assets in Excess of Liabilities | 1.4% |
100.0% |
Top Ten Holdings | |
Harris County Health Facilities Development Corp. Revenue Bonds (SCH Health Care System), Prerefunded/Escrowed to Maturity, Series B 07/01/2027 | 10.1% |
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.) 03/01/2030 | 6.4% |
New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A 12/15/2034 | 4.3% |
New York State Dormitory Authority Revenue Bonds (State University Educational Facilities 3rd Generation), Series A 05/15/2023 | 2.5% |
Metropolitan Transportation Authority Revenue Bonds, Series C-1 11/15/2027 | 2.5% |
Connecticut State Health & Educational Facilities Authority Revenue Bonds (Masonicare Corp Obligated Group), Series F 07/01/2027 | 2.4% |
Ohio Higher Educational Facility Commission Revenue Bonds 07/01/2030 | 2.3% |
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds, Series D 12/15/2026 | 2.2% |
Nassau County Local Economic Assistance Corp. Revenue Bonds (Catholic Health Services) 07/01/2030 | 2.2% |
Hudson Yards Infrastructure Corp. Revenue Bonds, Series A 02/15/2042 | 2.1% |
States | |
Texas | 19.8% |
New York | 15.9% |
Florida | 8.2% |
Maryland | 6.4% |
New Jersey | 5.5% |
Wisconsin | 4.6% |
Pennsylvania | 4.5% |
California | 3.9% |
Michigan | 3.6% |
Tennessee | 2.9% |
Ohio | 2.7% |
Connecticut | 2.4% |
South Carolina | 2.2% |
Louisiana | 2.1% |
Other, less than 2% each | 13.6% |
Short-Term Investment | 0.3% |
Assets in Excess of Other Liabilities | 1.4% |
100.0% |
2022 Annual Report | 37 |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS —98.3% | |||
CALIFORNIA—3.9% | |||
Bay Area Toll Authority Revenue Bonds, Series A, 2.95%, 04/01/2047(a) | $ | 345,000 | $ 332,474 |
Los Angeles Community College District General Obligation Unlimited Bonds, Series I, 4.00%, 08/01/2029 | 400,000 | 409,634 | |
M-S-R Energy Authority Gas Revenue Bonds | |||
Series A, 6.50%, 11/01/2039 | 500,000 | 569,432 | |
Series B, 6.13%, 11/01/2029 | 470,000 | 506,623 | |
Total California | 1,818,163 | ||
COLORADO—0.3% | |||
Colorado Educational & Cultural Facilities Authority Revenue Bonds (Aspen View Academy), 4.00%, 05/01/2041 | 170,000 | 134,537 | |
CONNECTICUT—2.4% | |||
Connecticut State Health & Educational Facilities Authority Revenue Bonds (Masonicare Corp Obligated Group), Series F, 5.00%, 07/01/2027 | 1,135,000 | 1,135,675 | |
DISTRICT OF COLUMBIA—1.1% | |||
Washington Convention & Sports Authority Revenue Bonds, Series A, 5.00%, 10/01/2030 | 500,000 | 529,283 | |
FLORIDA—8.2% | |||
City of Lakeland Revenue Bonds, Series B, AMT, 5.00%, 10/01/2028 | 565,000 | 605,072 | |
Florida Development Finance Corp. Revenue Bonds (Glenridge On Palmer Ranch), 5.00%, 06/01/2035 | 225,000 | 195,759 | |
Florida Development Finance Corp. Revenue Bonds (Global Outreach Charter AC), Series A, 4.00%, 06/30/2041(b) | 765,000 | 567,967 | |
Florida Development Finance Corp. Revenue Bonds (Imagine School at Broward), Series A, 5.00%, 12/15/2039(b) | 500,000 | 483,524 | |
Palm Beach County Educational Facilities Authority Revenue Bonds (Palm Beach Atlantic University, Inc.) | |||
4.00%, 10/01/2027 | 260,000 | 253,585 | |
4.00%, 10/01/2028 | 270,000 | 261,619 | |
Palm Beach County Revenue Bonds (Provident Group - LU Properties LLC - LYNN University Housing Project), Series A, 5.00%, 06/01/2057(b) | 600,000 | 499,369 | |
Polk County Industrial Development Authority Revenue Bonds (Carpenter's Home Estates, Inc. Project), Series A, 5.00%, 01/01/2039 | 160,000 | 143,882 | |
Saint Johns County Industrial Development Authority Revenue Bonds (Life Care Ponte Vedra Obligated Group), Series A, 4.00%, 12/15/2041 | 750,000 | 558,427 | |
Volusia County Educational Facility Authority Revenue Bonds, Series B, 5.00%, 10/15/2023 | 250,000 | 253,556 | |
Total Florida | 3,822,760 |
Shares or Principal Amount | Value | ||
GEORGIA—1.1% | |||
Main Street Natural Gas, Inc. Revenue Bonds | |||
Series A, 5.00%, 05/15/2035 | $ | 250,000 | $ 246,357 |
Series B, 5.00%, 06/01/2026 | 250,000 | 250,536 | |
Total Georgia | 496,893 | ||
HAWAII—1.2% | |||
City & County Honolulu HI Wastewater System Revenue Bonds, Series A, 5.00%, 07/01/2047 | 560,000 | 575,415 | |
ILLINOIS—0.4% | |||
Illinois Finance Authority Revenue Bonds (Plymouth Place Obligated Group), 5.00%, 05/15/2041 | 200,000 | 170,240 | |
INDIANA—1.6% | |||
Indiana Finance Authority Revenue Bonds (Earlham College, Inc.), 5.00%, 10/01/2032 | 750,000 | 751,560 | |
KENTUCKY—1.0% | |||
Kentucky Public Energy Authority Revenue Bonds, Series A, 4.00%, 04/01/2048(a) | 500,000 | 493,918 | |
LOUISIANA—2.1% | |||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds (Glen Retirement System), Series A, 5.00%, 01/01/2023 | 170,000 | 169,506 | |
Louisiana Public Facilities Authority Revenue Bonds, (Pre-refunded @ $100.000000, 05/15/2026), 3.00%, 05/15/2031 | 10,000 | 9,796 | |
New Orleans Aviation Board Revenue Bonds (Louis Armstrong International Airport), 5.00%, 01/01/2028 | 500,000 | 523,801 | |
New Orleans Aviation Board Revenue Bonds (Parking Facilities Corp.), Series B, 5.00%, 10/01/2027 | 250,000 | 266,027 | |
Total Louisiana | 969,130 | ||
MARYLAND—6.4% | |||
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.), 3.91%, 03/01/2030(a) | 3,000,000 | 3,000,000 | |
MASSACHUSETTS—1.6% | |||
Massachusetts Development Finance Agency Revenue Bonds (Massachusetts Seven Hills Foundation & Affiliates Issue), 5.00%, 09/01/2031 | 270,000 | 266,571 | |
Massachusetts Development Finance Agency Revenue Bonds (Wellforce Obligated Group), Series A, 5.00%, 07/01/2036 | 500,000 | 483,593 | |
Total Massachusetts | 750,164 |
38 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
MICHIGAN—3.6% | |||
Flint Hospital Building Authority Revenue Bonds | |||
4.00%, 07/01/2035 | $ | 1,000,000 | $ 857,842 |
4.00%, 07/01/2038 | 750,000 | 618,777 | |
Michigan Finance Authority Revenue Bonds (Cesar Chavez Academy), 3.25%, 02/01/2024 | 195,000 | 190,638 | |
Total Michigan | 1,667,257 | ||
MISSOURI—0.3% | |||
State Health & Educational Facilities Authority Revenue Bond (Bethesda Health Group, Inc.), 4.00%, 08/01/2036 | 165,000 | 139,626 | |
NEW HAMPSHIRE—1.1% | |||
New Hampshire Health & Education Facilities Authority Revenue Bonds (Dartmouth College) | |||
5.00%, 08/01/2035 | 250,000 | 251,410 | |
5.00%, 08/01/2036 | 245,000 | 245,509 | |
Total New Hampshire | 496,919 | ||
NEW JERSEY—5.5% | |||
New Jersey Educational Facilities Authority Revenue Bonds (The College of New Jersey) | |||
(Pre-refunded @ $100, 07/01/2026), Series F, 4.00%, 07/01/2033 | 70,000 | 71,423 | |
Series F, 4.00%, 07/01/2033 | 30,000 | 28,353 | |
New Jersey Transportation Trust Fund Authority Revenue Bonds, Series A, 5.00%, 12/15/2034 | 2,000,000 | 2,014,887 | |
Newark Housing Authority Revenue Bonds (Newark Redevelopment Project), 4.00%, 01/01/2037 | 500,000 | 466,993 | |
Total New Jersey | 2,581,656 | ||
NEW YORK—15.9% | |||
City of Elmira General Obligation Limited Bonds | |||
5.00%, 07/01/2025(b) | 85,000 | 87,563 | |
5.00%, 07/01/2033(b) | 625,000 | 648,800 | |
City of Poughkeepsie General Obligation Limited Bonds, 5.00%, 06/01/2031 | 145,000 | 147,602 | |
Hudson Yards Infrastructure Corp. Revenue Bonds, Series A, 5.00%, 02/15/2042 | 1,000,000 | 1,010,882 | |
Metropolitan Transportation Authority Revenue Bonds | |||
Series A-1, 5.00%, 11/15/2027 | 695,000 | 703,513 | |
Series A-2, VRN, 5.00%, 11/15/2045(a) | 400,000 | 409,575 | |
Series C-1, 5.00%, 11/15/2027 | 1,150,000 | 1,164,695 | |
Nassau County Local Economic Assistance Corp. Revenue Bonds (Catholic Health Services), 5.00%, 07/01/2030 | 1,000,000 | 1,014,371 | |
New York City Water & Sewer System Revenue Bonds, Series EE, 5.00%, 06/15/2037 | 295,000 | 305,099 | |
New York State Dormitory Authority Revenue Bonds (State University Educational Facilities 3rd Generation), Series A, 5.50%, 05/15/2023 | 1,160,000 | 1,174,206 |
Shares or Principal Amount | Value | ||
New York Transportation Development Corp. Revenue Bonds, AMT, 4.00%, 10/31/2034 | $ | 250,000 | $ 222,786 |
Port Authority of New York & New Jersey Revenue Bonds, 5.00%, 10/15/2042 | 560,000 | 569,933 | |
Total New York | 7,459,025 | ||
OHIO—2.7% | |||
Buckeye Tobacco Settlement Financing Authority Tobacco Settlement Assets-Backed Revenue Bonds, 5.00%, 06/01/2055 | 110,000 | 92,580 | |
Ohio Air Quality Development Authority Revenue Bonds (Ohio Valley Electric Corp. Project), Series A, 3.25%, 09/01/2029 | 135,000 | 120,081 | |
Ohio Higher Educational Facility Commission Revenue Bonds, 4.00%, 07/01/2030 | 1,095,000 | 1,058,115 | |
Total Ohio | 1,270,776 | ||
PENNSYLVANIA—4.5% | |||
Montgomery County Industrial Development Authority Revenue Bonds (Imagine School at Broward), 4.00%, 12/01/2037 | 300,000 | 280,063 | |
Pennsylvania Turnpike Commission Revenue Bonds, Series A, 5.25%, 07/15/2029 | 850,000 | 939,783 | |
School Dist. of the City of Erie, General Obligation Limited Bonds, Series A (AGM ST AID WITHHLDG), 5.00%, 04/01/2034 | 825,000 | 872,136 | |
Total Pennsylvania | 2,091,982 | ||
PUERTO RICO—0.8% | |||
Electric Power Authority Revenue Bonds, Series V, 5.25%, 07/01/2026 | 100,000 | 99,568 | |
Highway & Transportation Authority Revenue Bonds, (AGC), 5.50%, 07/01/2031 | 300,000 | 300,251 | |
Total Puerto Rico | 399,819 | ||
RHODE ISLAND—1.3% | |||
Tobacco Settlement Financing Corp. Revenue Bonds, Series B, 4.50%, 06/01/2045 | 650,000 | 600,491 | |
SOUTH CAROLINA—2.2% | |||
City of Rock Hill SC Combined Utility System Revenue Bonds | |||
5.00%, 01/01/2025 | 500,000 | 514,749 | |
5.00%, 01/01/2026 | 500,000 | 520,953 | |
Total South Carolina | 1,035,702 | ||
TENNESSEE—2.9% | |||
Knox County Health Educational & Housing Facilities Board Revenue Bonds (University Health System, Inc.), 5.00%, 09/01/2036 | 500,000 | 500,221 | |
Metropolitan Government Nashville & Davidson Health & Educational Facilities Revenue Bonds (Trevecca Nazarene University Project), 5.00%, 10/01/2034 | 360,000 | 347,004 | |
Tennessee Energy Acquisition Corp. Revenue Bonds, Series A, 5.25%, 09/01/2023 | 500,000 | 502,170 | |
Total Tennessee | 1,349,395 | ||
TEXAS—19.8% | |||
Arlington Higher Education Finance Corp. Revenue Bonds (Wayside Schools), 4.00%, 08/15/2036 | 100,000 | 81,824 |
2022 Annual Report | 39 |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
TEXAS (continued) | |||
Harris County Health Facilities Development Corp. Revenue Bonds (SCH Health Care System), Prerefunded/Escrowed to Maturity, Series B, 5.75%, 07/01/2027 | $ | 4,490,000 | $ 4,740,558 |
Matagorda County Navigation District No. 1 Revenue Bonds, Series B-1, 4.00%, 06/01/2030 | 1,000,000 | 952,043 | |
Port of Beaumont Navigation District of Jefferson County Dock & Wharf Facilities Revenue Bonds (Jefferson Railport Terminal II LLC), 4.00%, 01/01/2050(b) | 1,000,000 | 682,029 | |
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds (Baylor Scott & White Obligated Group), Series A, 5.00%, 11/15/2029 | 800,000 | 829,689 | |
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds (Texas Health Resources Obligated Group), Series A, 4.00%, 02/15/2036 | 1,000,000 | 935,067 | |
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds, Series D, 6.25%, 12/15/2026 | 990,000 | 1,025,454 | |
Total Texas | 9,246,664 | ||
UTAH—1.4% | |||
Salt Lake City Corp. Airport Revenue Bonds, Series B, 5.00%, 07/01/2042 | 100,000 | 98,947 | |
Utah Charter School Finance Authority Revenue Bonds (Scholar Academy), Series A, 4.50%, 04/15/2048(a)(b) | 570,000 | 560,074 | |
Total Utah | 659,021 | ||
WASHINGTON—0.4% | |||
State Housing Finance Commission Revenue Bonds (Transforming Age Project), Series A, 5.00%, 01/01/2024(b) | 180,000 | 177,931 | |
WISCONSIN—4.6% | |||
Public Finance Authority Revenue Bonds | |||
5.00%, 06/15/2029 | 530,000 | 533,298 | |
5.00%, 06/15/2034 | 425,000 | 417,869 | |
Series A, 5.00%, 07/01/2038 | 1,000,000 | 932,055 | |
Wisconsin Health & Educational Facilities Authority Revenue Bonds (Froedtert Health, Inc. Obligated Group), Series 2017 A, 5.00%, 04/01/2035 | 250,000 | 257,917 | |
Total Wisconsin | 2,141,139 | ||
Total Municipal Bonds | 45,965,141 | ||
SHORT-TERM INVESTMENT—0.3% | |||
BlackRock Liquidity Funds MuniCash, Institutional Shares | 128,392 | 128,379 | |
Total Short-Term Investment | 128,379 | ||
Total Investments (Cost $49,385,967)(c)—98.6% | 46,093,520 | ||
Other Assets in Excess of Liabilities—1.4% | 647,120 | ||
Net Assets—100.0% | $46,740,640 |
(a) | Variable Rate Instrument. The rate shown is based on the latest available information as of October 31, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
AMT | Alternative Minimum Tax |
VRN | Variable Rate Note |
40 | 2022 Annual Report |
1 | The Bloomberg Municipal Bond Index tracks the performance of investment-grade, tax-exempt bonds with a maturity of at least one year. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | S&P Global Ratings’ credit ratings express the agency’s opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Typically, ratings are expressed as letter grades that range, for example, from AAA to D to communicate the agency’s opinion of relative level of credit risk. Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. |
5 | Coupon – The interest rate stated on a bond when it’s issued. Typically coupons are paid semi-annually. |
6 | Volatility – If the price of a fund or asset moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
7 | Net asset value (NAV) – A key measure of the value of a company, fund or trust – the total value of assets less liabilities, divided by the number of shares. |
8 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
2022 Annual Report | 41 |
9 | Underweight – A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
42 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | Inception2 | |
Class A | w/o SC | (9.71%) | 0.19% | 1.76% |
w/SC3 | (11.94%) | (0.32%) | 1.49% | |
Class C4 | w/o SC | (10.37%) | (0.08%) | (4.44%) |
w/SC5 | (11.25%) | (0.08%) | (4.44%) | |
Institutional Class6 | w/o SC | (9.48%) | 0.44% | 2.01% |
1 | The Fund changed its investment strategy effective February 28, 2019. Performance information for periods prior to February 28, 2019 does not reflect the Fund’s current investment strategy. Returns prior to May 7, 2018 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund had substantially similar investment objectives and strategies prior to the Fund’s adoption of its current investment strategies on February 28, 2019. Please consult the Fund’s prospectus for more detail. |
2 | Predecessor Fund commenced operations on May 31, 2013. |
3 | A 2.50% front-end sales charge was deducted. Prior to February 28, 2019 the front-end sales charge was 4.25%. |
4 | Class C returns prior to the commencement of operations of Class C (inception date: 12/18/2020) are based on the previous performance of the Fund’s Class A shares (inception date: 5/31/2013). Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses between the two classes. |
5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year return because it is charged when Class C shares are sold within the first year after purchase. |
6 | Not subject to any sales charges. |
2022 Annual Report | 43 |
44 | 2022 Annual Report |
Asset Allocation | |
Municipal Bonds | 98.7% |
Other Assets in Excess of Liabilities | 1.3% |
100.0% |
Top Ten Holdings | |
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.) 03/01/2030 | 5.9% |
Colorado Health Facilities Authority Revenue Bonds (Aberdeen Ridge), Series B-1 05/15/2030 | 3.1% |
Madison Country Capital Resource Corp. Revenue Bonds (Cazenovia College Project), Series A 09/01/2022 | 3.0% |
Iowa Finance Authority Revenue Bonds, FRN, Series B 05/15/2056 | 2.6% |
Mississippi Business Finance Corp. Revenue Bonds (PSL-North America), Series A 11/01/2032 | 2.6% |
Shakopee Minnesota Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project) 11/01/2058 | 2.2% |
Utah Charter School Finance Authority Revenue Bonds (Wasatch Waldorf Charter School, Inc.), Series A 05/15/2048 | 2.2% |
Public Finance Authority Revenue Bonds, Series A-1 01/01/2027 | 2.0% |
Washington State Housing Finance Commission Revenue Bonds(Eliseo Project), Series B-1 07/01/2028 | 1.9% |
Public Finance Authority Revenue Bonds (Masonic & Eastern Star Home of NC, Inc.), Series B-1 03/01/2027 | 1.9% |
States | |
New York | 12.7% |
Wisconsin | 8.3% |
Maryland | 7.8% |
Florida | 7.2% |
Illinois | 6.1% |
Texas | 5.9% |
Utah | 4.7% |
Colorado | 4.2% |
Mississippi | 4.2% |
Washington | 3.9% |
Arizona | 3.2% |
Connecticut | 2.9% |
California | 2.8% |
Iowa | 2.6% |
Louisiana | 2.3% |
Minnesota | 2.2% |
Massachusetts | 2.1% |
Oregon | 2.1% |
Other, less than 2% each | 13.5% |
Assets in Excess of Other Liabilities | 1.3% |
100.0% |
2022 Annual Report | 45 |
Principal Amount | Value | ||
MUNICIPAL BONDS —98.7% | |||
ALABAMA—0.1% | |||
Jemison Water & Sewer Revenue Bonds, Series A, 3.50%, 03/01/2026 | $ | 235,000 | $ 222,582 |
ARIZONA—3.2% | |||
Arizona Industrial Development Authority Revenue Bonds (Great Lakes Senior Living Communities LLC Project Third Tier) | |||
Series C, 5.13%, 01/01/2034(a) | 775,000 | 522,594 | |
Series C, 5.13%, 01/01/2035(a) | 815,000 | 537,095 | |
Arizona Industrial Development Authority Revenue Bonds (Kaizen Education Foundation), 5.00%, 07/01/2023(a) | 405,000 | 406,812 | |
Arizona Industrial Development Authority Revenue Bonds (Somerset Academy of Las Vegas), Series A, 3.00%, 12/15/2031(a) | 655,000 | 531,366 | |
Arizona Industrial Development Authority Revenue Refunding Bonds (Doral Academy of Northern Nevada Project) | |||
Series A, 4.00%, 07/15/2026(a) | 125,000 | 119,674 | |
Series A, 4.00%, 07/15/2027(a) | 125,000 | 117,958 | |
Series A, 4.00%, 07/15/2028(a) | 185,000 | 171,904 | |
Series A, 4.00%, 07/15/2029(a) | 200,000 | 183,041 | |
Series A, 4.00%, 07/15/2030(a) | 215,000 | 193,700 | |
Series A, 4.00%, 07/15/2031(a) | 215,000 | 190,181 | |
Series A, 4.00%, 07/15/2032(a) | 225,000 | 195,253 | |
Series A, 4.00%, 07/15/2033(a) | 185,000 | 157,517 | |
Series A, 4.00%, 07/15/2034(a) | 185,000 | 154,884 | |
Series A, 4.00%, 07/15/2035(a) | 255,000 | 210,095 | |
Series A, 4.00%, 07/15/2036(a) | 250,000 | 203,108 | |
Series A, 4.00%, 07/15/2037(a) | 275,000 | 220,130 | |
La Paz County Industrial Development Authority Revenue Bonds (Charter School Solutions), Series A, 5.00%, 02/15/2026(a) | 410,000 | 410,993 | |
Maricopa County Industrial Development Authority Revenue Bonds (Ottawa University) | |||
5.00%, 10/01/2026(a) | 245,000 | 243,787 | |
5.13%, 10/01/2030(a) | 425,000 | 416,997 | |
Maricopa County Industrial Development Authority Revenue Bonds (Paragon Management, Inc.), 4.00%, 07/01/2026(a) | 1,010,000 | 972,912 | |
Total Arizona | 6,160,001 | ||
ARKANSAS—0.8% | |||
County of Baxter Hospital Revenue Bonds (Baxter Regional Medical Center), Series A, 5.00%, 09/01/2026 | 1,490,000 | 1,522,322 | |
CALIFORNIA—2.8% | |||
California Municipal Finance Authority Revenue Bonds (Simpson University) | |||
Series A, 5.00%, 10/01/2026(a) | 40,000 | 39,440 | |
Series A, 5.13%, 10/01/2030(a) | 1,020,000 | 984,263 |
Principal Amount | Value | ||
California Public Finance Authority Revenue Bonds (Kendal at Sonoma Obligated Group), Series B-1, 3.13%, 05/15/2029(a) | $ | 3,075,000 | $ 2,622,180 |
California Statewide Communities Development Authority Revenue Bonds (Provident Group-Ponoma Properties LLC), Series A, 5.60%, 01/15/2036(a) | 1,800,000 | 1,799,957 | |
Total California | 5,445,840 | ||
COLORADO—4.2% | |||
Colorado Educational & Cultural Facilities Authority Revenue Bonds (Aspen View Academy, Inc.) | |||
4.00%, 05/01/2024 | 150,000 | 147,981 | |
4.00%, 05/01/2027 | 65,000 | 62,037 | |
4.00%, 05/01/2029 | 145,000 | 135,239 | |
4.00%, 05/01/2030 | 120,000 | 110,473 | |
4.00%, 05/01/2036 | 175,000 | 147,748 | |
Colorado Health Facilities Authority Revenue Bonds, Series B, 5.00%, 05/15/2028 | 100,000 | 100,852 | |
Colorado Health Facilities Authority Revenue Bonds (Aberdeen Ridge) | |||
Series B-1, 3.50%, 05/15/2030 | 6,950,000 | 6,023,681 | |
Series B-2, 2.63%, 05/15/2029 | 1,705,000 | 1,499,913 | |
Total Colorado | 8,227,924 | ||
CONNECTICUT—2.9% | |||
City of West Haven General Obligation Unlimited Bonds | |||
Series A, 5.00%, 11/01/2025 | 325,000 | 337,981 | |
Series A, 5.00%, 11/01/2026 | 325,000 | 340,936 | |
Series A, 5.00%, 11/01/2027 | 635,000 | 670,957 | |
Series B, 5.00%, 11/01/2025 | 240,000 | 249,586 | |
Series B, 5.00%, 11/01/2026 | 200,000 | 209,807 | |
Series B, 5.00%, 11/01/2027 | 200,000 | 211,325 | |
State Health & Educational Facilities Authority Revenue Bond (McLean Affiliates Obligated Group) | |||
Series A, 5.00%, 01/01/2030(a) | 500,000 | 492,873 | |
Series B-1, 3.25%, 01/01/2027(a) | 750,000 | 722,179 | |
Series B-2, 2.75%, 01/01/2026(a) | 650,000 | 631,137 | |
State Health & Educational Facilities Authority Revenue Bond (University of Hartford) | |||
Series N, 5.00%, 07/01/2025 | 400,000 | 399,508 | |
Series N, 5.00%, 07/01/2026 | 575,000 | 573,361 | |
Series N, 5.00%, 07/01/2027 | 430,000 | 427,656 | |
Series N, 5.00%, 07/01/2029 | 300,000 | 296,493 | |
Total Connecticut | 5,563,799 | ||
FLORIDA—7.2% | |||
Alachua County Health Facilities Authority Revenue Bonds (Oak Hammock at The University Of Florida, Inc.) | |||
4.00%, 10/01/2027 | 145,000 | 138,139 | |
4.00%, 10/01/2028 | 155,000 | 145,629 | |
4.00%, 10/01/2029 | 265,000 | 245,554 | |
4.00%, 10/01/2030 | 100,000 | 91,378 | |
4.00%, 10/01/2031 | 140,000 | 126,271 |
46 | 2022 Annual Report |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
FLORIDA (continued) | |||
Capital Trust Agency, Inc., 6.50%, 01/01/2024(b)(c)(d) | $ | 248,055 | $ – |
Capital Trust Agency, Inc. Revenue Bonds (Wonderful Foundations Charter School Holdings LLC), Series A-1, 4.50%, 01/01/2035(a) | 300,000 | 234,648 | |
Celebration Pointe Community Development District No.1 Special Assessment Revenue Bonds, 4.75%, 05/01/2024 | 25,000 | 25,075 | |
Florida Development Finance Corp. Educational Facilities Revenue Bonds (Imagine School At Broward Project) | |||
Series A, 4.00%, 12/15/2029(a) | 530,000 | 502,203 | |
Series A, 5.00%, 12/15/2034(a) | 530,000 | 523,954 | |
Florida Development Finance Corp. Educational Facilities Revenue Bonds (Miami Arts Charter School Project), Series A, 5.00%, 06/15/2024(a) | 100,000 | 97,142 | |
Florida Development Finance Corp. Revenue Bonds (Glenridge on Palmer Ranch Obligated Group) | |||
3.00%, 06/01/2023 | 115,000 | 113,299 | |
4.00%, 06/01/2024 | 105,000 | 102,226 | |
Florida Development Finance Corp. Revenue Bonds (Global Outreach Charter Academy Obligated Group) | |||
Series A, 4.00%, 06/30/2027(a) | 150,000 | 140,264 | |
Series A, 4.00%, 06/30/2028(a) | 195,000 | 179,228 | |
Series A, 4.00%, 06/30/2029(a) | 205,000 | 185,154 | |
Series A, 4.00%, 06/30/2030(a) | 215,000 | 190,952 | |
Series A, 4.00%, 06/30/2031(a) | 225,000 | 196,596 | |
Series A, 4.00%, 06/30/2036(a) | 625,000 | 496,036 | |
Florida Development Finance Corp. Revenue Bonds (Mayflower Retirement Center, Inc. Obligated Group) | |||
Series B-1, 2.38%, 06/01/2027(a) | 835,000 | 731,510 | |
Series B-2, 1.75%, 06/01/2026(a) | 3,065,000 | 2,707,866 | |
Lee County Industrial Development Authority Refunding Revenue Bonds (Shell Point Obligated Group), 4.00%, 11/15/2030 | 5,000 | 4,666 | |
Palm Beach County Educational Facilities Authority Revenue Bonds (Palm Beach Atlantic University, Inc.) | |||
4.00%, 10/01/2023 | 220,000 | 219,575 | |
4.00%, 10/01/2024 | 230,000 | 228,436 | |
4.00%, 10/01/2025 | 240,000 | 237,128 | |
4.00%, 10/01/2026 | 245,000 | 240,568 | |
Palm Beach County Revenue Bonds (Provident Group - LU Properties LLC - LYNN University Housing Project) | |||
Series A, 4.25%, 06/01/2031(a) | 1,200,000 | 1,065,889 | |
Series A, 5.00%, 06/01/2057(a) | 400,000 | 332,913 |
Principal Amount | Value | ||
Palm Beach County Revenue Bonds (Provident Group - PBAU Properties LLC - Palm Beach Atlantic University Housing Project), Series A, 5.00%, 04/01/2029(a) | $ | 1,440,000 | $ 1,375,243 |
Polk County Industrial Development Authority Revenue Bonds (Carpenter's Home Estates, Inc. Project) | |||
Series A, 5.00%, 01/01/2029 | 360,000 | 349,025 | |
Series A, 5.00%, 01/01/2039 | 240,000 | 215,823 | |
Saint Johns County Industrial Development Authority Revenue Bonds (Life Care Ponte Vedra Obligated Group) | |||
Series A, 4.00%, 12/15/2022 | 110,000 | 109,854 | |
Series A, 4.00%, 12/15/2027 | 215,000 | 199,046 | |
Series A, 4.00%, 12/15/2028 | 205,000 | 186,306 | |
Series A, 4.00%, 12/15/2029 | 225,000 | 200,789 | |
Series A, 4.00%, 12/15/2030 | 200,000 | 175,280 | |
Series A, 4.00%, 12/15/2031 | 210,000 | 180,950 | |
Seminole County Industrial Development Authority Revenue Bonds (Galileo School Foundation, Inc.) | |||
Series A, 4.00%, 06/15/2024(a) | 130,000 | 127,739 | |
Series A, 4.00%, 06/15/2025(a) | 105,000 | 101,822 | |
Series A, 4.00%, 06/15/2026(a) | 155,000 | 147,993 | |
Series A, 4.00%, 06/15/2027(a) | 235,000 | 221,145 | |
Series A, 4.00%, 06/15/2028(a) | 250,000 | 231,841 | |
Series A, 4.00%, 06/15/2029(a) | 255,000 | 232,942 | |
Series A, 4.00%, 06/15/2031(a) | 275,000 | 243,840 | |
Series A, 4.00%, 06/15/2036(a) | 315,000 | 257,945 | |
Total Florida | 14,059,882 | ||
GEORGIA—0.1% | |||
Main Street Natural Gas, Inc. Revenue Bonds, Series A, 5.00%, 05/15/2030 | 200,000 | 203,242 | |
IDAHO—0.4% | |||
Idaho Housing & Finance Association Revenue Bonds (Idaho Arts Charter School, Inc.), Series A, 4.00%, 12/01/2026(a) | 700,000 | 678,406 | |
Idaho Housing & Finance Association Revenue Bonds (Victory Charter School), Series A, 4.00%, 07/01/2026(a) | 80,000 | 77,937 | |
Total Idaho | 756,343 | ||
ILLINOIS—6.1% | |||
Cook County School District No. 144 Prairie Hills General Obligation Unlimited Bonds, Series A, 4.00%, 12/01/2033 | 600,000 | 600,277 | |
Governors State University Certificates of Participation (Capital Improvement Project), 5.00%, 07/01/2026 | 400,000 | 419,826 | |
Illinois Finance Authority Educational Facility Revenue Bonds (Rogers Park Montessori School), 5.00%, 02/01/2024 | 110,000 | 109,755 |
2022 Annual Report | 47 |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
ILLINOIS (continued) | |||
Illinois Finance Authority Revenue Bonds (Acero Charter Schools, Inc. Obligated Group) | |||
4.00%, 10/01/2027(a) | $ | 405,000 | $ 381,966 |
4.00%, 10/01/2028(a) | 580,000 | 540,169 | |
4.00%, 10/01/2029(a) | 910,000 | 835,287 | |
4.00%, 10/01/2030(a) | 630,000 | 569,619 | |
4.00%, 10/01/2032(a) | 685,000 | 596,755 | |
4.00%, 10/01/2033(a) | 1,060,000 | 905,707 | |
4.00%, 10/01/2034(a) | 445,000 | 373,696 | |
Illinois Finance Authority Revenue Bonds (Benedictine University) | |||
5.00%, 10/01/2025 | 1,035,000 | 1,033,534 | |
5.00%, 10/01/2028 | 120,000 | 118,756 | |
5.00%, 10/01/2029 | 200,000 | 197,429 | |
5.00%, 10/01/2030 | 100,000 | 97,917 | |
Illinois Finance Authority Revenue Bonds (CHF-Chicago LLC) | |||
Series A, 5.00%, 02/15/2027 | 420,000 | 410,947 | |
Series A, 5.00%, 02/15/2028 | 400,000 | 388,581 | |
Series A, 5.00%, 02/15/2029 | 520,000 | 500,683 | |
Series A, 5.00%, 02/15/2030 | 335,000 | 320,186 | |
Series A, 5.00%, 02/15/2031 | 370,000 | 351,411 | |
Series A, 5.00%, 02/15/2032 | 225,000 | 210,966 | |
Illinois Finance Authority Revenue Bonds (Chicago Charter School Foundation) | |||
5.00%, 12/01/2028 | 250,000 | 253,818 | |
5.00%, 12/01/2029 | 315,000 | 319,664 | |
Illinois Finance Authority Revenue Bonds (Plymouth Place Obligated Group) | |||
5.00%, 05/15/2032 | 275,000 | 257,519 | |
5.00%, 05/15/2033 | 290,000 | 266,310 | |
5.00%, 05/15/2034 | 300,000 | 271,786 | |
5.00%, 05/15/2035 | 315,000 | 282,129 | |
5.00%, 05/15/2036 | 330,000 | 292,959 | |
Metropolitan Pier & Exposition Authority Revenue Bonds | |||
Series B, 5.00%, 12/15/2025 | 295,000 | 297,230 | |
Series B, 5.00%, 12/15/2027 | 100,000 | 100,191 | |
Village of Matteson Revenue Bonds | |||
5.00%, 12/01/2026 | 150,000 | 158,475 | |
5.00%, 12/01/2027 | 150,000 | 159,534 | |
5.00%, 12/01/2028 | 350,000 | 373,868 | |
Total Illinois | 11,996,950 | ||
INDIANA—1.2% | |||
City of Valparaiso Exempt Facilities Revenue Bonds (Pratt Paper LLC), 5.88%, 01/01/2024 | 100,000 | 101,090 | |
Hammond Local Public Improvement Bond Bank Revenue Bonds, Series B, 4.63%, 07/15/2023(a) | 445,000 | 441,848 | |
Indiana Finance Authority Revenue Bonds (Ohio Valley Electric Corp.), Series A, 4.25%, 11/01/2030 | 2,000,000 | 1,856,013 | |
Total Indiana | 2,398,951 |
Principal Amount | Value | ||
IOWA—2.6% | |||
Iowa Finance Authority Revenue Bonds, FRN, Series B, 3.21%, 05/15/2056(e) | $ | 5,500,000 | $ 5,129,710 |
KANSAS—0.4% | |||
City of Manhattan Revenue Bonds (Meadowlark Hills Retirement Community Obligated Group) | |||
Series B-1, 2.88%, 06/01/2028 | 375,000 | 324,954 | |
Series B-2, 2.38%, 06/01/2027 | 430,000 | 379,911 | |
Total Kansas | 704,865 | ||
KENTUCKY—0.6% | |||
Kentucky Economic Development Finance Authority Revenue Bonds (Christian Care Communities Obligated Group), 4.25%, 07/01/2031 | 1,315,000 | 1,130,668 | |
LOUISIANA—2.3% | |||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds (Provident Group - ULM Properties LLC - University Of Louisiana At Manroe Project), Series A, 5.00%, 07/01/2029(a) | 1,000,000 | 914,253 | |
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds (St. James Place of Baton Rouge), Series A, 5.50%, 11/15/2025 | 250,000 | 246,978 | |
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds (The Glen System Retirement Project) | |||
Series A, 5.00%, 01/01/2024 | 180,000 | 176,455 | |
Series A, 5.00%, 01/01/2025 | 370,000 | 356,199 | |
Series A, 5.00%, 01/01/2026 | 390,000 | 368,481 | |
Series A, 5.00%, 01/01/2027 | 410,000 | 379,109 | |
Series A, 5.00%, 01/01/2028 | 430,000 | 389,410 | |
Series A, 5.00%, 01/01/2029 | 450,000 | 399,309 | |
Louisiana Local Government Environmental Facilities & Community Development Authority Student Housing Revenue Bonds (Provident Group - ULM Properties LLC - University Of Louisiana At Manroe Project), Series A, 5.00%, 07/01/2039(a) | 1,000,000 | 794,121 | |
Louisiana Public Facilities Authority Revenue Bonds (Young Audiences Charter School Project), Series A, 5.00%, 04/01/2030(a) | 400,000 | 375,865 | |
Total Louisiana | 4,400,180 | ||
MARYLAND—7.8% | |||
Anne Arundel County Consolidated Special Taxing District Bonds (Villages at Two Rivers Project), 4.20%, 07/01/2024 | 50,000 | 49,460 | |
Frederick County Educational Facilities Revenue Bonds (Mount St. Marys University) | |||
Series A, 5.00%, 09/01/2027(a) | 1,495,000 | 1,482,264 | |
Series A, 5.00%, 09/01/2032(a) | 740,000 | 709,965 |
48 | 2022 Annual Report |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
MARYLAND (continued) | |||
Maryland Economic Development Corp. Revenue Bonds (CONSOL Marine Terminal, Inc.), 5.75%, 09/01/2025 | $ | 1,445,000 | $ 1,443,378 |
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.), 3.91%, 03/01/2030(e) | 11,510,000 | 11,510,000 | |
Total Maryland | 15,195,067 | ||
MASSACHUSETTS—2.1% | |||
Massachusetts Development Finance Agency Revenue Bonds (Linden Ponds, Inc.), 4.00%, 11/15/2023(a) | 430,000 | 427,486 | |
Massachusetts Development Finance Agency Revenue Bonds (NewBridge on The Charles, Inc.) | |||
4.00%, 10/01/2025(a) | 500,000 | 500,531 | |
4.00%, 10/01/2026(a) | 500,000 | 499,807 | |
4.00%, 10/01/2027(a) | 450,000 | 447,805 | |
Massachusetts Development Finance Agency Revenue Bonds (Provident Commonwealth Education Resource, Inc.), 5.00%, 10/01/2024 | 1,500,000 | 1,499,934 | |
Massachusetts Development Finance Agency Revenue Bonds (Wellforce Issue) | |||
Series A, 5.00%, 07/01/2033 | 500,000 | 498,190 | |
Series A, 5.00%, 07/01/2034 | 300,000 | 295,607 | |
Total Massachusetts | 4,169,360 | ||
MICHIGAN—1.4% | |||
Calhoun County Hospital Finance Authority Revenue Bonds (Ella E.M. Brown Charitable Circle), 5.00%, 02/15/2024 | 500,000 | 504,588 | |
Charyl Stockwell Academy Revenue Bonds, 4.88%, 10/01/2023 | 20,000 | 19,772 | |
Kalamazoo Economic Development Corp. Revenue Bonds (Heritage Community of Kalamazoo Obligated Group), Series B-2, 2.63%, 05/15/2025 | 1,130,000 | 1,060,658 | |
Michigan Finance Authority Public School Academy Limited Revenue Bond (Cesar Chavez Academy Project), 4.00%, 02/01/2029 | 700,000 | 644,371 | |
Michigan Strategic Fund, 4.00%, 10/01/2061(e) | 500,000 | 476,258 | |
Total Michigan | 2,705,647 | ||
MINNESOTA—2.2% | |||
Shakopee Minnesota Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), 5.85%, 11/01/2058(a)(e) | 4,500,000 | 4,384,628 | |
MISSISSIPPI—4.2% | |||
Mississippi Business Finance Corp. Revenue Bonds (PSL-North America), Series A, 3.67%, 11/01/2032(e) | 5,000,000 | 5,000,000 |
Principal Amount | Value | ||
Mississippi Development Bank Obligation Bonds (Mangolia Regional Health Centre) | |||
5.00%, 10/01/2023(a) | $ | 415,000 | $ 416,952 |
5.00%, 10/01/2024(a) | 440,000 | 443,713 | |
5.00%, 10/01/2025(a) | 660,000 | 666,000 | |
Mississippi Development Bank Revenue Bonds (Hancock County Gomesa Project), 4.55%, 11/01/2039(a) | 2,000,000 | 1,693,614 | |
Total Mississippi | 8,220,279 | ||
MISSOURI—1.1% | |||
Platte County Industrial Development Authority Transportation Revenue Bonds, 5.00%, 12/01/2025(b)(f) | 675,000 | 303,750 | |
Plaza at Noah's Ark Community Improvement District Revenue Bonds | |||
3.00%, 05/01/2023 | 100,000 | 99,049 | |
3.00%, 05/01/2024 | 100,000 | 97,009 | |
3.00%, 05/01/2025 | 100,000 | 94,961 | |
3.00%, 05/01/2026 | 100,000 | 92,987 | |
Saint Louis County Missouri Industrial Development Authority Revenue Bonds (Ranken-Jordan Pediatric Specialty Hospital), 5.00%, 11/15/2022 | 625,000 | 625,029 | |
State Health & Educational Facilities Authority Revenue Bond (Bethesda Health Group, Inc.) | |||
4.00%, 08/01/2029 | 385,000 | 356,685 | |
4.00%, 08/01/2031 | 310,000 | 279,434 | |
4.00%, 08/01/2036 | 275,000 | 232,711 | |
Total Missouri | 2,181,615 | ||
NEVADA—0.6% | |||
City of Carson Hospital Revenue Bonds (Carson Tahoe Regional Healthcare) | |||
Series A, 5.00%, 09/01/2027 | 605,000 | 624,218 | |
Series A, 5.00%, 09/01/2029 | 620,000 | 636,492 | |
Total Nevada | 1,260,710 | ||
NEW JERSEY—0.4% | |||
New Jersey Economic Development Authority Revenue Bonds (Greater Brunswick Charter School Project), Series A, 4.75%, 08/01/2024(a) | 50,000 | 49,527 | |
South Jersey Port Corp. Revenue Bonds | |||
Series B, 5.00%, 01/01/2026 | 300,000 | 304,223 | |
Series B, 5.00%, 01/01/2027 | 250,000 | 253,614 | |
Series B, 5.00%, 01/01/2028 | 255,000 | 259,154 | |
Total New Jersey | 866,518 | ||
NEW YORK—12.7% | |||
Albany Capital Resource Corp. (College of St Rose/The), 4.00%, 07/01/2028 | 1,150,000 | 1,020,002 | |
Amherst Development Corp. Revenue Bonds (Daemen College) | |||
5.00%, 10/01/2025 | 600,000 | 602,373 | |
5.00%, 10/01/2026 | 630,000 | 631,560 | |
4.00%, 10/01/2037 | 500,000 | 409,369 | |
Brookhaven Local Development Corp. Revenue Bonds (Active Retirement Community, Inc.), 5.00%, 11/01/2022 | 250,000 | 250,000 |
2022 Annual Report | 49 |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
NEW YORK (continued) | |||
Build NYC Resource Corp. Revenue Bonds (Metropolitan Lighthouse Charter School Project) | |||
Series A, 5.00%, 06/01/2023(a) | $ | 370,000 | $ 370,971 |
Series A, 5.00%, 06/01/2024(a) | 390,000 | 391,158 | |
Series A, 5.00%, 06/01/2025(a) | 410,000 | 410,572 | |
Series A, 5.00%, 06/01/2026(a) | 430,000 | 428,730 | |
Series A, 5.00%, 06/01/2027(a) | 450,000 | 447,257 | |
Series A, 5.00%, 06/01/2032(a) | 500,000 | 481,912 | |
Build NYC Resource Corp. Revenue Bonds (Richmond Preparatory Charter School Project), Series A, 4.00%, 06/01/2031(a) | 650,000 | 580,290 | |
City of Elmira General Obligation Limited Bonds | |||
5.00%, 07/01/2025(a) | 845,000 | 870,479 | |
5.00%, 07/01/2033(a) | 2,635,000 | 2,735,341 | |
City of Poughkeepsie General Obligation Limited Bonds, 5.00%, 06/01/2031 | 455,000 | 463,163 | |
Madison Country Capital Resource Corp. Revenue Bonds (Cazenovia College Project), Series A, 5.50%, 09/01/2022(f)(g) | 6,500,000 | 5,850,000 | |
New York State Dormitory Authority Revenue Bonds (Touro College And University System Obligated Group), Series A, 4.00%, 01/01/2023 | 445,000 | 445,554 | |
New York State Environmental Facilities Corp. Revenue Bonds (Casella Waste Systems, Inc.), Series R-1, 2.75%, 09/01/2050(e) | 1,000,000 | 929,703 | |
Suffolk County Economic Development Corp. Revenue Bonds (St Johnland Assisted Living, Inc.), 4.63%, 11/01/2031(a) | 1,020,000 | 854,837 | |
Westchester County Local Development Corp. | |||
Series B, 3.60%, 07/01/2029(a) | 2,000,000 | 1,721,860 | |
Series C, 3.20%, 07/01/2028(a) | 1,675,000 | 1,553,859 | |
Series D, 2.88%, 07/01/2026(a) | 1,000,000 | 950,612 | |
Western Regional Off-Track Betting Corp. Revenue Bonds | |||
3.00%, 12/01/2026(a) | 1,175,000 | 1,049,825 | |
4.13%, 12/01/2041(a) | 1,900,000 | 1,361,149 | |
Total New York | 24,810,576 | ||
NORTH CAROLINA—0.4% | |||
North Carolina Capital Facilities Finance Agency Revenue Bonds (Johnson & Wales University), Series A, 5.00%, 04/01/2028 | 795,000 | 800,733 | |
OHIO—0.8% | |||
Cleveland-Cuyahoga County Port Authority Revenue Bonds, 5.00%, 12/01/2028 | 205,000 | 206,587 |
Principal Amount | Value | ||
Ohio Air Quality Development Authority Revenue Bonds (Ohio Valley Electric Corp. Project) | |||
Series A, 2.88%, 02/01/2026 | $ | 1,000,000 | $ 927,717 |
Series A, 3.25%, 09/01/2029 | 140,000 | 124,528 | |
State Of Ohio Hospital (University Hospitals Health System, Inc.) Revenue Bonds, VRDN, 2.65%, 01/15/2045(e) | 200,000 | 200,000 | |
Total Ohio | 1,458,832 | ||
OREGON—2.1% | |||
Hospital Facilities Authority of Multnomah County Oregon Revenue Bonds | |||
0.95%, 06/01/2027 | 1,000,000 | 856,016 | |
Series B, 1.20%, 06/01/2028 | 1,800,000 | 1,497,021 | |
Yamhill County Hospital Authority Revenue Bonds (Friendsview Manor Obligated Group) | |||
Series B-1, 2.50%, 11/15/2028 | 500,000 | 431,761 | |
Series B-2, 2.13%, 11/15/2027 | 1,500,000 | 1,308,238 | |
Total Oregon | 4,093,036 | ||
PENNSYLVANIA—1.9% | |||
City of Scranton PA General Obligation Bonds, 5.00%, 09/01/2023(a) | 1,000,000 | 1,001,765 | |
Delaware County Industrial Development Authority Revenue Bonds (CCSA Foundation), Series A, 4.38%, 06/01/2026(a) | 2,135,000 | 2,073,212 | |
Indiana County Hospital Authority Revenue Bonds (Indiana Regional Medical Center), Series A, 5.00%, 06/01/2023 | 100,000 | 100,916 | |
Lehigh County Industrial Development Authority Revenue Bonds (Seven Generations Charter School), Series A, 4.00%, 05/01/2031 | 680,000 | 602,148 | |
Total Pennsylvania | 3,778,041 | ||
PUERTO RICO—1.0% | |||
Puerto Rico Highway & Transportation Authority Revenue Bonds | |||
(AGM-CR), 5.50%, 07/01/2030 | 1,000,000 | 1,006,750 | |
Series D, 5.00%, 07/01/2027 | 145,000 | 146,008 | |
Series E, 5.50%, 07/01/2023 | 200,000 | 202,022 | |
Series L, 5.25%, 07/01/2023 | 520,000 | 520,431 | |
Total Puerto Rico | 1,875,211 | ||
RHODE ISLAND—0.3% | |||
Rhode Island Health & Educational Building Corp. Revenue Bonds (Care New England Health System Obligated Group), Series B, 5.00%, 09/01/2023 | 500,000 | 502,989 |
50 | 2022 Annual Report |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
SOUTH CAROLINA—0.7% | |||
South Carolina Jobs-Economic Development Authority Revenue Bonds (Lowcountry Leadership Charter School), Series A, 4.00%, 12/01/2029(a) | $ | 1,030,000 | $ 944,423 |
South Carolina Jobs-Economic Development Authority Revenue Bonds (RePower South Berkeley LLC), Series A, 5.25%, 02/01/2027(a)(b)(f)(g) | 1,060,000 | 424,000 | |
Total South Carolina | 1,368,423 | ||
TEXAS—5.9% | |||
Arlington Higher Education Finance Corp. Revenue Bonds (Wayside Schools) | |||
4.00%, 08/15/2036 | 230,000 | 188,195 | |
Series A, 5.00%, 08/15/2023 | 155,000 | 155,462 | |
Series A, 5.00%, 08/15/2024 | 195,000 | 195,679 | |
Series A, 5.00%, 08/15/2025 | 205,000 | 205,196 | |
Series A, 5.00%, 08/15/2026 | 190,000 | 189,403 | |
Series A, 5.00%, 08/15/2027 | 200,000 | 198,475 | |
Series A, 5.00%, 08/15/2028 | 80,000 | 78,811 | |
Series A, 4.00%, 08/15/2029 | 75,000 | 68,495 | |
Series A, 4.00%, 08/15/2030 | 80,000 | 72,053 | |
Series A, 4.00%, 08/15/2031 | 90,000 | 79,820 | |
Bexar County Health Facilities Development Corp. Revenue Bonds (Army Retirement Residence Obligation Group), 5.00%, 07/15/2023 | 300,000 | 299,834 | |
Calhoun County Navigation Industrial Development Authority Revenue Bonds (Max Midstream Texas LLC), AMT, Series A, 3.63%, 07/01/2026(a) | 4,000,000 | 3,540,384 | |
Change Desertexpress Enterprises LLC to Brightline West Passenger Rail Project, VRN, 2.00%, 11/15/2061(e) | 701,368 | 309,597 | |
Decatur Hospital Authority Revenue Bonds (Wise Regional Health System), Series A, 5.00%, 09/01/2023 | 275,000 | 277,698 | |
Harris County Cultural Education Facilities Finance Corp. Revenue Bonds (Brazos Presbyterian Homes, Inc.), 5.00%, 01/01/2027 | 895,000 | 870,385 | |
New Hope Cultural Education Facilities Finance Corp. Revenue Bonds (Cardinal Bay, Inc.) | |||
Series C, 5.00%, 07/01/2023 | 300,000 | 150,000 | |
Series D, 6.00%, 07/01/2026 | 95,000 | 42,750 | |
New Hope Cultural Education Facilities Finance Corp.(Outlook at Windhaven Forefront Living Obligated Group), Series B-3, 4.25%, 10/01/2026 | 2,000,000 | 1,940,292 |
Principal Amount | Value | ||
New Hope Cultural Education Facilities Finance Corporation Education Revenue And Refunding Bonds (Jubilee Academic Center) | |||
4.00%, 08/15/2023(a) | $ | 360,000 | $ 357,482 |
4.00%, 08/15/2024(a) | 370,000 | 362,866 | |
4.00%, 08/15/2029(a) | 445,000 | 406,642 | |
4.00%, 08/15/2030(a) | 465,000 | 419,353 | |
4.00%, 08/15/2031(a) | 485,000 | 431,692 | |
SA Energy Acquisition Public Facility Corp. Revenue Bonds, 5.50%, 08/01/2023 | 50,000 | 50,381 | |
Texas Municipal Gas Acquisition & Supply Corp. III Revenue Bonds | |||
5.00%, 12/15/2029 | 250,000 | 253,120 | |
5.00%, 12/15/2030 | 375,000 | 378,767 | |
Total Texas | 11,522,832 | ||
U. S. VIRGIN ISLANDS—1.0% | |||
Matching Fund Special Purpose Securitization Corp. Revenue Bonds | |||
Series A, 5.00%, 10/01/2025 | 1,000,000 | 1,020,425 | |
Series A, 5.00%, 10/01/2026 | 1,000,000 | 1,019,734 | |
Total U. S. Virgin Islands | 2,040,159 | ||
UTAH—4.7% | |||
Utah Charter School Finance Authority Revenue Bonds (Esperanza Elementary School) | |||
Series A, 4.50%, 10/15/2028(a) | 500,000 | 471,018 | |
Series A, 4.63%, 10/15/2048(a)(e) | 1,000,000 | 975,848 | |
Utah Charter School Finance Authority Revenue Bonds (Freedom Academy Foundation), Series A, 3.25%, 06/15/2031(a) | 535,000 | 444,744 | |
Utah Charter School Finance Authority Revenue Bonds (Scholar Academy), Series A, 4.50%, 04/15/2048(a)(e) | 3,000,000 | 2,947,755 | |
Utah Charter School Finance Authority Revenue Bonds (Wasatch Waldorf Charter School, Inc.), Series A, 4.75%, 05/15/2048(a)(e) | 4,310,000 | 4,270,106 | |
Total Utah | 9,109,471 | ||
WASHINGTON—3.9% | |||
Washington State Housing Finance Commission Revenue Bonds (Spokane International Academy) | |||
Series A, 4.00%, 07/01/2025(a) | 355,000 | 344,423 | |
Series A, 4.00%, 07/01/2026(a) | 285,000 | 272,883 | |
Series A, 4.00%, 07/01/2027(a) | 295,000 | 278,735 | |
Series A, 4.00%, 07/01/2028(a) | 305,000 | 283,818 | |
Series A, 4.00%, 07/01/2029(a) | 320,000 | 293,501 | |
Washington State Housing Finance Commission Revenue Bonds(Eliseo Project) | |||
Series B-1, 2.50%, 07/01/2028(a) | 4,375,000 | 3,771,665 | |
Series B-2, 2.13%, 07/01/2027(a) | 2,750,000 | 2,424,767 | |
Total Washington | 7,669,792 |
2022 Annual Report | 51 |
Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
WEST VIRGINIA—0.3% | |||
Glenville State College Board of Governors Revenue Bonds, 4.00%, 06/01/2027 | $ | 250,000 | $ 226,398 |
Ohio County Development Authority Revenue Bonds (Ohio County Sport Complex Project), 4.00%, 09/01/2023 | 425,000 | 415,580 | |
Total West Virginia | 641,978 | ||
WISCONSIN—8.3% | |||
Public Finance Authority Educational Facilities Revenue Refunding Bonds (The Methodist University) | |||
4.00%, 03/01/2027(a) | 795,000 | 750,271 | |
4.00%, 03/01/2028(a) | 840,000 | 779,474 | |
4.00%, 03/01/2029(a) | 890,000 | 810,919 | |
4.00%, 03/01/2030(a) | 950,000 | 852,154 | |
Public Finance Authority Revenue Bonds | |||
Series A, 5.00%, 10/01/2029(a) | 500,000 | 481,926 | |
Series A-1, 6.00%, 01/01/2027 | 4,100,000 | 3,802,564 | |
Public Finance Authority Revenue Bonds (Masonic & Eastern Star Home of NC, Inc.) | |||
Series B-1, 3.50%, 03/01/2027(a) | 4,000,000 | 3,683,592 | |
Series B-2, 3.00%, 03/01/2026(a) | 790,000 | 732,188 | |
Public Finance Authority Revenue Bonds (Washoe Barton Medical Clinic) | |||
Series A, 3.00%, 12/01/2026 | 250,000 | 229,379 | |
Series A, 4.00%, 12/01/2031 | 700,000 | 630,972 | |
Public Finance Authority Revenue Bonds (Wonderful Foundations Charter School Holdings LLC), Series A-1, 4.50%, 01/01/2035(a) | 1,000,000 | 782,161 | |
Wisconsin Health & Educational Facilities Authority Revenue Bond | |||
Series A, 5.00%, 11/01/2022 | 120,000 | 120,000 | |
Series A, 5.00%, 11/01/2023 | 360,000 | 358,035 | |
Wisconsin Public Finance Authority Educational Facilities Revenue Bonds (Guilford College) | |||
5.00%, 01/01/2026 | 685,000 | 674,046 | |
5.00%, 01/01/2027 | 830,000 | 812,788 | |
Wisconsin Public Finance Authority Educational Facilities Revenue Bonds (Piedmont Community Charter School) | |||
5.00%, 06/15/2024 | 210,000 | 211,093 | |
5.00%, 06/15/2026 | 230,000 | 231,474 | |
5.00%, 06/15/2027 | 160,000 | 161,102 | |
Total Wisconsin | 16,104,138 | ||
Total Municipal Bonds | 192,683,294 | ||
Total Investments (Cost $213,679,226)(h)—98.7% | 192,683,294 | ||
Other Assets in Excess of Liabilities—1.3% | 2,547,300 | ||
Net Assets—100.0% | $195,230,594 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Security is in default. |
(c) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(d) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.00% of net assets as of October 31, 2022. |
(e) | Variable Rate Instrument. The rate shown is based on the latest available information as of October 31, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(f) | Illiquid security. |
(g) | Security is in forbearance as of October 31, 2022 |
(h) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
AMT | Alternative Minimum Tax |
FRN | Floating Rate Note |
VRDN | Variable Rate Demand Note |
VRN | Variable Rate Note |
52 | 2022 Annual Report |
1 | The Bloomberg Municipal Bond Index tracks the performance of investment-grade, tax-exempt bonds with a maturity of at least one year. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. |
3 | Monetary policy – Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
4 | Duration – A measure of the maturity of a bond or portfolio of bonds that takes into account the periodic coupon payments. It attempts to measure market risk, or volatility, in a bond by considering maturity and the time pattern of interest payments prior to repayment. Two bonds with the same term to maturity but different coupon rates will respond differently to changes in interest rates. So will bonds with the same coupon rate but different terms to maturity. The higher the duration, the greater a bond’s price-sensitivity to changes in yield. |
5 | Net asset value (NAV) – A key measure of the value of a company, fund or trust – the total value of assets less liabilities, divided by the number of shares. |
6 | Floating rate securities – Bond with a variable interest rate. Also known as a “floater” or “FRN," Floating Rate Notes are mainly issued by financial institutions and governments, and they typically have a two- to five-year term to maturity. |
7 | Volatility – If the price of a fund or asset moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
8 | Underweight – A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
2022 Annual Report | 53 |
54 | 2022 Annual Report |
Average Annual Total Return1 (For the periods ended October 31, 2022) | 1 Yr. | 5 Yr. | 10 Yr. | |
Class A | w/o SC | 0.30% | 0.69% | 0.52% |
Class A12 | w/o SC | 0.20% | 0.69% | 0.52% |
w/SC3 | (0.29%) | 0.59% | 0.47% | |
Institutional Class4 | w/o SC | 0.37% | 0.87% | 0.74% |
1 | Returns prior to May 7, 2018 reflect the performance of a predecessor fund (the “Predecessor Fund”). Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Returns before the first offering of Class A1 (February 28, 2019) are based on the previous performance of Class A. Returns of the class have not been adjusted to reflect the expenses applicable to the respective classes. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what Class A would have produced because all classes invest in the same portfolio of securities. Returns for Class A shares would only differ to the extent of the difference in expenses of the classes. |
3 | A 0.50% front-end sales charge was deducted. |
4 | Not subject to any sales charges. |
2022 Annual Report | 55 |
Asset Allocation | |
Municipal Bonds | 102.1% |
Certificates of Deposit | 2.9% |
Money Market Funds | –% |
Liabilities in Excess of Other Assets | (5.0%) |
100.0% |
Top Ten Holdings | |
Mississippi Business Finance Corp. Revenue Bonds (PSL-North America), Series A 11/01/2032 | 9.0% |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds (PPL Energy Supply, LLC Project), VRDN 12/01/2037 | 7.3% |
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.) 03/01/2030 | 6.2% |
Pennsylvania Economic Development Financing Authority Solid Waste Disposal Revenue Bonds (Waste Management PA Obligated Group) 08/01/2045 | 3.7% |
City of New York General Obligation Limited Bonds, VRDN 04/01/2042 | 3.2% |
Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series C 02/15/2053 | 2.9% |
Rib Floater Trust Various States Revenue Bonds, VRDN 11/01/2041 | 2.9% |
Black Belt Energy Gas District Revenue Bonds, FRN, Series B-1 12/01/2048 | 2.9% |
Port of Corpus Christi Authority of Nueces County Solid Waste Disposal Revenue Bonds (Flint Hills Resources LP), AMT, VRDN 01/01/2032 | 2.8% |
South Carolina Jobs-Economic Development Authority Revenue Bonds (Prisma Health Obligated Group), VRDN, Series C 05/01/2048 | 2.7% |
States | |
Pennsylvania | 13.7% |
New York | 11.0% |
Mississippi | 10.6% |
Texas | 10.6% |
California | 8.7% |
Alabama | 6.5% |
Maryland | 6.3% |
Kentucky | 4.3% |
Wisconsin | 4.2% |
Louisiana | 4.1% |
Arizona | 3.2% |
Indiana | 3.1% |
South Carolina | 3.0% |
Ohio | 2.7% |
Arkansas | 2.3% |
Other, less than 2% each | 7.8% |
Short-Term Investments | 2.9% |
Liabilities in Excess of Other Assets | (5.0%) |
100.0% |
56 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS —102.1% | |||
ALABAMA—6.5% | |||
Black Belt Energy Gas District Revenue Bonds, FRN, Series B-1, 3.42%, 12/01/2048(a) | $ | 20,000,000 | $ 19,775,876 |
Health Care Authority for Baptist Health Revenue Bonds | |||
Series B, 3.50%, 11/15/2037(a) | 8,925,000 | 8,925,000 | |
Series B, 3.05%, 11/01/2042(a) | 15,925,000 | 15,925,000 | |
Total Alabama | 44,625,876 | ||
ARIZONA—3.2% | |||
Cochise County Pollution Control Corp. Revenue Bonds (Arizona Electric Power Cooperative, Inc.), 3.30%, 09/01/2024(a) | 4,200,000 | 4,187,709 | |
Industrial Development Authority of the City of Phoenix (The) Revenue Bonds (Republic Services, Inc.), AMT, FRN, Series D, 2.25%, 12/01/2035(a) | 15,000,000 | 15,000,000 | |
Tender Option Bond Trust Receipts/Certificates Revenue Bonds, VRDN, 2.78%, 06/15/2050(a)(b) | 3,055,000 | 3,055,000 | |
Total Arizona | 22,242,709 | ||
ARKANSAS—2.3% | |||
Arkansas Development Finance Authority Revenue Bonds (Baptist Memorial Health Care Obligated Group), VRDN, Series B-4, 3.05%, 09/01/2044(a) | 15,762,000 | 15,762,000 | |
CALIFORNIA—8.7% | |||
California Infrastructure & Economic Development Bank Revenue Bonds (Brightline West Passenger Rail Project), AMT, FRN, 0.85%, 01/01/2050(a)(b) | 15,000,000 | 14,864,460 | |
California Pollution Control Financing Authority Revenue Bonds (Republic Services, Inc.), Series A, 2.25%, 08/01/2023(a)(b) | 15,000,000 | 14,999,378 | |
California Statewide Communities Development Authority Revenue Bonds (CommonSpirit Health Obligated Group), Series E, 2.94%, 07/01/2040(a) | 3,000,000 | 3,000,000 | |
Change Commonspirit Health to Dignity Health | |||
AGM, 2.80%, 07/01/2040(a) | 2,000,000 | 2,000,000 | |
AGM, 2.80%, 07/01/2041(a) | 3,000,000 | 3,000,000 | |
Palomar Pomerado Health Care Certificates of Participation | |||
Series A, 3.15%, 11/01/2036(a) | 5,425,000 | 5,425,000 | |
Series B, 2.95%, 11/01/2036(a) | 2,175,000 | 2,175,000 | |
Series C, 3.15%, 11/01/2036(a) | 14,000,000 | 14,000,000 | |
Total California | 59,463,838 | ||
COLORADO—0.2% | |||
E-470 Public Highway Authority Revenue Bonds, FRN, Series B, 2.90%, 09/01/2039(a) | 1,500,000 | 1,477,219 |
Shares or Principal Amount | Value | ||
CONNECTICUT—0.8% | |||
City of West Haven General Obligation Unlimited Bonds, 5.00%, 03/28/2023 | $ | 5,680,000 | $ 5,699,884 |
FLORIDA—1.2% | |||
Miami-Dade County Industrial Development Authority Revenue Bonds (Waste Management, Inc.) | |||
AMT, FRN, Series A, 2.76%, 11/01/2033(a) | 3,000,000 | 2,873,408 | |
AMT, FRN, Series B, 2.76%, 11/01/2048(a) | 2,000,000 | 1,915,605 | |
Miami-Dade County Industrial Development Authority Solid Waste Disposal Revenue Bonds, (Waste Management Inc. Of Florida Project), 4.40%, 11/01/2041(a) | 3,075,000 | 3,074,974 | |
Total Florida | 7,863,987 | ||
ILLINOIS—1.4% | |||
State of Illinois General Obligation Unlimited Bonds, Series A, 5.00%, 10/01/2023 | 1,030,000 | 1,037,790 | |
Tender Option Bond Trust Receipts/Certificates Revenue Bonds, VRDN, 2.78%, 11/01/2048(a)(b) | 8,380,000 | 8,380,000 | |
Total Illinois | 9,417,790 | ||
INDIANA—3.1% | |||
City of Whiting Environmental Facilities Revenue Bonds (BP Products North America, Inc. Project), AMT, VRN, 5.00%, 11/01/2045(a) | 10,000,000 | 10,000,000 | |
Indiana Finance Authority Economic Development Revenue Bonds (Republic Services, Inc.), Series A, 2.95%, 05/01/2034(a) | 1,000,000 | 999,549 | |
Indiana Finance Authority RevenueBonds (ArcelorMittal SA), 2.95%, 08/01/2030(a) | 10,000,000 | 10,000,000 | |
Total Indiana | 20,999,549 | ||
KENTUCKY—4.3% | |||
County of Meade, Kentucky (Nucor Steel Brandenburg Project) Series 2020A-1 Industrial Building Revenue Bonds, AMT, VRDN, 1.99%, 07/01/2060(a) | 3,460,000 | 3,460,000 | |
County of Meade, Kentucky (Nucor Steel Brandenburg Project) Series 2020B-1 Industrial Building Revenue Bonds, AMT, VRDN, Series A-2, 1.99%, 07/01/2060(a) | 7,900,000 | 7,900,000 | |
County of Meade, Kentucky (Nucor Steel Brandenburg Project) Series 2021A-1 Industrial Building Revenue Bonds, AMT, VRDN, 1.99%, 08/01/2061(a) | 6,895,000 | 6,895,000 | |
Kentucky Economic Development Finance Authority Solid Waste Revenue Bonds (Republic Services, Inc. Project), Series A, AMT, FRN, 2.95%, 04/01/2031(a) | 5,670,000 | 5,667,445 | |
Kentucky Public Energy Authority Revenue Bonds, Series A, 4.00%, 04/01/2048(a) | 5,000,000 | 4,939,179 | |
Pulaski County Solid Waste Disposal Revenue Bonds (East Kentucky Power Cooperative, Inc.), Series B, 2.88%, 08/15/2023(a) | 700,000 | 699,483 | |
Total Kentucky | 29,561,107 |
2022 Annual Report | 57 |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
LOUISIANA—4.1% | |||
Louisiana Local Government Environmental Facilities & Community Development Authority Revenue Bonds (American BioCarbon CT LLC), AMT, VRN, 2.13%, 12/01/2046(a) | $ | 18,000,000 | $ 17,972,534 |
Louisiana Public Facilities Authority Revenue Bonds (St Mary's Dominican High School Corp.), Series B, 2.90%, 07/01/2033(a) | 70,000 | 70,000 | |
Louisiana Stadium And Exposition District Bond Anticipation Notes, 5.00%, 07/03/2023 | 10,175,000 | 10,188,229 | |
Total Louisiana | 28,230,763 | ||
MARYLAND—6.3% | |||
Maryland Industrial Development Financing Authority Revenue Bonds (Occidental Petroleum Corp.), 3.91%, 03/01/2030(a) | 42,405,000 | 42,405,000 | |
Washington County Revenue Bonds (Conservit, Inc.), 2.73%, 02/01/2023(a) | 425,000 | 425,000 | |
Total Maryland | 42,830,000 | ||
MICHIGAN—0.1% | |||
Michigan Strategic Fund Tax-Exempt Adjustable Mode Exempt Facilities Revenue Bonds (Waste Management, Inc.), AMT, VRN, 0.58%, 08/01/2027(a) | 500,000 | 466,539 | |
MISSISSIPPI—10.6% | |||
Jackson County Water System General Obligation Bonds, VRN, 2.00%, 11/01/2024(a) | 1,000,000 | 1,000,000 | |
Mississippi Business Finance Corp. Gulf Opportunity Zone Revenue Bonds, Series C, 2.00%, 05/01/2037(a) | 10,000,000 | 10,000,000 | |
Mississippi Business Finance Corp. Revenue Bonds (PSL-North America), Series A, 3.67%, 11/01/2032(a) | 62,000,000 | 62,000,000 | |
Total Mississippi | 73,000,000 | ||
NEVADA—1.1% | |||
Director Of The State Of Nevada Department Of Business And Industry Revenue Bonds Brightline West Passenger Rail Project, AMT, VRN, Series A, 0.85%, 01/01/2050(a)(b) | 7,500,000 | 7,432,230 | |
NEW JERSEY—0.5% | |||
Township of Mendham NJ Notes, 4.00%, 05/04/2023 | 3,273,000 | 3,271,441 | |
NEW YORK—11.0% | |||
City of Elmira General Obligation Limited Bonds | |||
2.00%, 05/01/2023 | 455,000 | 449,997 | |
4.00%, 05/01/2024 | 675,000 | 678,670 | |
City of New York General Obligation Limited Bonds, VRDN, 2.51%, 04/01/2042(a) | 22,200,000 | 22,200,000 | |
City of Newburgh General Obligation Limited Bonds, Series B, 4.00%, 12/29/2022 | 9,500,000 | 9,496,815 |
Shares or Principal Amount | Value | ||
Metropolitan Transportation Authority Revenue Bonds | |||
FRN, Series D-1, 2.88%, 11/01/2035(a) | $ | 4,750,000 | $ 4,610,311 |
Series F, 5.00%, 11/15/2022 | 1,125,000 | 1,125,672 | |
Series F, 5.00%, 11/15/2022 | 1,530,000 | 1,530,894 | |
Metropolitan Transportation Authority Transportation Revenue Refunding Green Bonds, Series B, 5.00%, 11/15/2022 | 600,000 | 600,350 | |
New York City General Obligation Unlimited Bonds | |||
Series C-4, 2.84%, 10/01/2027(a) | 2,525,000 | 2,525,000 | |
Series J-2, 2.80%, 06/01/2036(a) | 2,575,000 | 2,575,000 | |
Series J-3, 2.94%, 06/01/2036(a) | 4,375,000 | 4,375,000 | |
New York Transportation Development Corp. Revenue Bonds (Delta Air Lines, Inc.), AMT, Series A, 5.00%, 01/01/2024 | 1,500,000 | 1,499,381 | |
Rib Floater Trust Various States Revenue Bonds, VRDN, 2.78%, 11/01/2041(a)(b) | 20,000,000 | 20,000,000 | |
Triborough Bridge & Tunnel Authority Revenue Bonds, Series B, 2.93%, 01/01/2032(a) | 3,955,000 | 3,884,966 | |
Total New York | 75,552,056 | ||
NORTH CAROLINA—0.2% | |||
Fayetteville State University Revenue Bonds | |||
(AGM), 5.00%, 04/01/2023 | 405,000 | 407,803 | |
(AGM), 5.00%, 04/01/2024 | 425,000 | 433,296 | |
(AGM), 5.00%, 04/01/2026 | 470,000 | 487,734 | |
Total North Carolina | 1,328,833 | ||
OHIO—2.7% | |||
State Of Ohio Hospital (University Hospitals Health System, Inc.) Revenue Bonds, VRDN, 2.65%, 01/15/2045(a) | 18,000,000 | 18,000,000 | |
State of Ohio Hospital Revenue Bonds (University Hospitals Health System, Inc.), VRDN, 2.70%, 01/15/2051(a) | 735,000 | 735,000 | |
Total Ohio | 18,735,000 | ||
OKLAHOMA—1.8% | |||
Oklahoma Development Finance Authority Revenue Bonds (Gilcrease Developers LLC), AMT, Series A, 1.63%, 07/06/2023 | 2,000,000 | 1,951,737 | |
Oklahoma Development Finance Authority Revenue Bonds (INTEGRIS Health Obligated Group ), VRDN, Series B, 2.93%, 08/15/2031(a) | 10,680,000 | 10,680,000 | |
Total Oklahoma | 12,631,737 | ||
OREGON—0.0% | |||
Gilliam County, Solid Waste Disposal Revenue Bonds, (Waste Management Project), VRN, 3.00%, 08/01/2025(a) | 100,000 | 99,497 | |
PENNSYLVANIA—13.7% | |||
Central Bradford Progress Authority Revenue Bonds (The Guthrie Clinic Issue), VRDN, Series D, 2.95%, 12/01/2041(a) | 16,500,000 | 16,500,000 |
58 | 2022 Annual Report |
Shares or Principal Amount | Value | ||
MUNICIPAL BONDS (continued) | |||
PENNSYLVANIA (continued) | |||
Montgomery County Higher Education & Health Authority, VRDN, Series D, 2.89%, 09/01/2050(a) | $ | 2,100,000 | $ 2,100,000 |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds (PPL Energy Supply, LLC Project), VRDN, 3.40%, 12/01/2037(a) | 50,000,000 | 50,000,000 | |
Pennsylvania Economic Development Financing Authority Solid Waste Disposal Revenue Bonds (Waste Management PA Obligated Group), 2.25%, 08/01/2045(a) | 25,000,000 | 25,000,188 | |
Total Pennsylvania | 93,600,188 | ||
SOUTH CAROLINA—3.0% | |||
Richland country Revenue Bond (International Paper Co.), AMT, Series A, 3.88%, 04/01/2023 | 1,715,000 | 1,710,466 | |
South Carolina Jobs-Economic Development Authority Revenue Bonds (Prisma Health Obligated Group), VRDN, Series C, 2.92%, 05/01/2048(a) | 18,825,000 | 18,825,000 | |
Total South Carolina | 20,535,466 | ||
TENNESSEE—0.2% | |||
Metropolitan Government Nashville & Davidson County Industrial Development Board, 0.58%, 08/01/2031(a) | 350,000 | 326,577 | |
Wilson County Industrial Development Board Revenue Bonds (Kenwal Steel Tennessee LLC), 2.73%, 06/01/2037(a) | 890,000 | 890,000 | |
Total Tennessee | 1,216,577 | ||
TEXAS—10.6% | |||
City of Houston TX Hotel Occupancy Tax & Revenue Bonds | |||
4.00%, 09/01/2023 | 180,000 | 180,793 | |
4.00%, 09/01/2025 | 425,000 | 427,652 | |
Mission Economic Development Corp. Revenue Bonds (Waste Management, Inc.), Series A, 2.95%, 05/01/2046(a) | 18,400,000 | 18,384,660 | |
Mission Economic Development Corp. Solid Waste Disposal Revenue Bonds (Republic Services, Inc.), AMT, FRN, Series A, 2.25%, 05/01/2050(a) | 5,000,000 | 4,999,793 | |
Port of Corpus Christi Authority of Nueces County Revenue Bonds (Flint Hills Resources LP), AMT, VRDN, Series A, 2.45%, 07/01/2029(a)(b) | 9,800,000 | 9,800,000 | |
Port of Corpus Christi Authority of Nueces County Solid Waste Disposal Revenue Bonds (Flint Hills Resources LP) | |||
AMT, VRDN, 2.75%, 01/01/2030(a) | 700,000 | 700,000 | |
AMT, VRDN, 2.75%, 01/01/2032(a) | 19,200,000 | 19,200,000 | |
Port of Port Arthur Navigation District Revenue Bonds, 2.15%, 04/01/2040(a) | 1,700,000 | 1,700,000 | |
Port of Port Arthur Navigation District Revenue Bonds (Motiva Enterprises Class C), VRDN, 2.17%, 04/01/2040(a) | 1,600,000 | 1,600,000 |
Shares or Principal Amount | Value | ||
Port of Port Arthur Navigation District Revenue Bonds (Motiva Enterprises LLC) | |||
VRDN, 3.16%, 12/01/2027(a) | $ | 6,000,000 | $ 6,000,000 |
VRDN, 2.15%, 04/01/2040(a) | 4,100,000 | 4,100,000 | |
Texas Municipal Gas Acquisition & Supply Corp III Revenue Bonds | |||
5.00%, 12/15/2022 | 1,150,000 | 1,151,017 | |
5.00%, 12/15/2024 | 3,100,000 | 3,135,954 | |
5.00%, 12/15/2025 | 1,500,000 | 1,521,320 | |
Total Texas | 72,901,189 | ||
WEST VIRGINIA—0.3% | |||
West Virginia Hospital Finance Authority Revenue Bonds (West Virginia United Health System Obligated Group), Series E, 2.90%, 06/01/2033(a) | 2,150,000 | 2,150,000 | |
WISCONSIN—4.2% | |||
Wisconsin Health & Educational Facilities Authority Revenue Bonds, Series C, 2.95%, 02/15/2053(a) | 20,000,000 | 20,000,000 | |
Wisconsin Health & Educational Facilities Authority Revenue Bonds (Marshfield Clinic Health System), VRDN, 2.95%, 02/15/2053(a) | 8,800,000 | 8,800,000 | |
Total Wisconsin | 28,800,000 | ||
Total Municipal Bonds | 699,895,475 | ||
SHORT-TERM INVESTMENTS—2.9% | |||
CERTIFICATES OF DEPOSIT—2.9% | |||
UNITED STATES—2.9% | |||
Mercer County Pollution Control Revenue, 3.00%, 11/16/2022 | 20,000,000 | 20,000,000 | |
Total Certificates of Deposit | 20,000,000 | ||
MONEY MARKET FUNDS—0.0% | |||
BlackRock Liquidity Funds MuniCash, Institutional Shares | 95,532 | 95,523 | |
Total Money Market Funds | 95,523 | ||
Total Short-Term Investments | 20,095,523 | ||
Total Investments (Cost $721,501,439)(c)—105.0% | 719,990,998 | ||
Liabilities in Excess of Other Assets—(5.0%) | (34,030,333) | ||
Net Assets—100.0% | $685,960,665 |
(a) | Variable Rate Instrument. The rate shown is based on the latest available information as of October 31, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
AMT | Alternative Minimum Tax |
FRN | Floating Rate Note |
VRDN | Variable Rate Demand Note |
VRN | Variable Rate Note |
2022 Annual Report | 59 |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | ||||||
Assets: | |||||||||||
Investments, at value | $23,612,302 | $22,500,805 | $96,104,076 | $45,965,141 | $192,683,294 | $699,895,475 | |||||
Short-term investments, at value | – | 16,038,998 | 14,966,734 | 128,379 | – | 20,095,523 | |||||
Foreign Currency, at value | 657,230 | 522,686 | – | – | – | – | |||||
Cash | 101,065 | 347,598 | 16,645 | – | 61,776 | 64,389 | |||||
Cash collateral pledged for futures | – | 664,650 | – | – | – | – | |||||
Cash at broker | 50,000 | – | – | – | – | – | |||||
Receivable for investments sold | 11,446 | 834,211 | – | – | 1,056,000 | – | |||||
Interest and dividends receivable | 534,431 | 266,255 | 1,519,794 | 678,282 | 2,285,153 | 2,790,640 | |||||
Receivable for capital shares issued | – | 995 | 1,971 | – | 382,374 | 1,272,696 | |||||
Unrealized appreciation on forward foreign currency exchange contracts | 56,132 | 2,378,668 | 6,287 | – | – | – | |||||
Receivable from Adviser | 16,785 | 34,134 | – | 7,807 | 49,411 | 159,921 | |||||
Unrealized appreciation on total return swap contracts | – | 231,673 | – | – | – | – | |||||
Variation margin receivable for future contracts | – | 104,743 | – | – | – | – | |||||
Prepaid expenses | 35,324 | 27,752 | 1,127 | 18,104 | 34,314 | – | |||||
Total Assets | 25,074,715 | 43,953,168 | 112,616,634 | 46,797,713 | 196,552,322 | 724,278,644 | |||||
Liabilities: | |||||||||||
Due to Custodian | – | – | 12 | – | – | – | |||||
Payable for investments purchased | 14,848 | – | 8,647,364 | – | – | 35,000,000 | |||||
Unrealized depreciation on forward foreign currency exchange contracts | 76,231 | 1,392,028 | 335,428 | – | – | – | |||||
Unrealized depreciation on total return swap contracts | – | 117,906 | – | – | – | – | |||||
Distributions payable | – | – | 117 | 4,063 | 15,458 | 42,876 | |||||
Payable for capital shares redeemed | 79 | 22,423 | 1,672,210 | – | 1,086,338 | 2,932,920 | |||||
Cash collateral due to broker | – | 250,000 | – | – | – | – | |||||
Cash due to broker for forward foreign currency contracts | 60,000 | – | – | – | – | – | |||||
Payable for interest rate swaps closed | – | 236,256 | – | – | – | – | |||||
Variation margin payable for centrally cleared swap contracts | – | 70,362 | – | – | – | – | |||||
Accrued expenses and other payables: | |||||||||||
Administration fees | 1,671 | 2,891 | 6,348 | 3,209 | 17,580 | 43,081 | |||||
Audit fees | 5,111 | 16,069 | 8,110 | 5,111 | 4,991 | 5,110 | |||||
Custodian fees | 18,252 | 170,816 | 52,350 | 5,418 | 18,716 | 14,274 | |||||
Distribution fees | 981 | 3,020 | 13,018 | 1,243 | 5,522 | – | |||||
Fund accounting fees | 764 | 1,308 | 2,799 | 1,357 | 7,866 | 20,618 | |||||
Interest expense on line of credit | – | – | – | – | 10,832 | 4,442 | |||||
Investment advisory fees | 12,534 | 21,680 | 121,484 | 17,046 | 109,940 | 157,570 | |||||
Legal fees | 200 | 307 | 617 | 346 | 831 | 4,204 | |||||
Printing fees | 1,728 | 7,646 | – | 2,528 | – | – | |||||
Sub-transfer agent and administrative services fees | 419 | 5,072 | 16,593 | 415 | 11,572 | 49,520 | |||||
Transfer agent fees | 807 | 2,451 | 5,870 | 3,145 | 3,145 | 4,851 | |||||
Other accrued expenses | 16,276 | 27,481 | 26,234 | 13,192 | 28,937 | 38,513 | |||||
Total liabilities | 209,901 | 2,347,716 | 10,908,554 | 57,073 | 1,321,728 | 38,317,979 | |||||
Net assets | $24,864,814 | $41,605,452 | $101,708,080 | $46,740,640 | $195,230,594 | $685,960,665 | |||||
Cost: | |||||||||||
Investments | 33,559,969 | 23,081,030 | 113,118,182 | 49,257,588 | 213,679,226 | 701,405,916 | |||||
Short-Term Investments | – | 16,043,163 | 14,966,734 | 128,379 | – | 20,095,523 | |||||
Foreign currency | 629,495 | 552,573 | 184 | – | – | – | |||||
Cash at broker for future contracts, at cost | – | 664,650 | – | – | – | – Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
60 | 2022 Annual Report |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | ||||||
Represented by: | |||||||||||
Paid in capital in excess of par value | $42,577,203 | $47,873,716 | $357,962,559 | $50,615,795 | $239,149,298 | $689,223,533 | |||||
Distributable earnings (accumulated loss) | (17,712,389) | (6,268,264) | (256,254,479) | (3,875,155) | (43,918,704) | (3,262,868) | |||||
Net Assets | $24,864,814 | $41,605,452 | $101,708,080 | $46,740,640 | $195,230,594 | $685,960,665 | |||||
Net Assets: | |||||||||||
Class A | $102,180 | $13,568,884 | $61,409,652 | $4,919,024 | $14,399,225 | $123,919,832 | |||||
Class A1 | – | – | – | – | – | 260,893 | |||||
Class C | 9,979 | 40,965 | – | 216,753 | 26,798 | – | |||||
Class R | 2,239,433 | – | – | – | – | – | |||||
Institutional Service Class | 62,010 | 5,152,767 | – | 18,023 | – | – | |||||
Institutional Class | 22,451,212 | 22,842,836 | 40,298,428 | 41,586,840 | 180,804,571 | 561,779,940 | |||||
Total | $24,864,814 | $41,605,452 | $101,708,080 | $46,740,640 | $195,230,594 | $685,960,665 | |||||
Shares Outstanding (unlimited number of shares authorized): | |||||||||||
Class A Shares | 15,964 | 1,537,496 | 8,548,960 | 578,690 | 1,591,474 | 12,319,701 | |||||
Class A1 Shares | – | – | – | – | – | 25,921 | |||||
Class C Shares | 1,551 | 4,781 | – | 25,543 | 2,960 | – | |||||
Class R Shares | 351,805 | – | – | – | – | – | |||||
Institutional Service Class Shares | 9,673 | 577,634 | – | 2,118 | – | – | |||||
Institutional Class Shares | 3,498,433 | 2,539,192 | 6,136,355 | 4,888,277 | 19,981,121 | 56,166,834 | |||||
Total Shares Outstanding per Class | 3,877,426 | 4,659,103 | 14,685,315 | 5,494,628 | 21,575,555 | 68,512,456 | |||||
Net Asset Value and Redemption Price Per Share (Net assets by class divided by shares outstanding by class, respectively): | |||||||||||
Class A Shares | $6.40 | $8.83(a) | $7.18 | $8.50 | $9.05 | $10.06 | |||||
Class A1 Shares | – | – | – | – | – | 10.06 | |||||
Class C Shares (b) | 6.43 | 8.57(a) | – | 8.49 | 9.05(a) | – | |||||
Class R Shares | 6.37(a) | – | – | – | – | – | |||||
Institutional Service Class Shares | 6.41 | 8.92(a) | – | 8.51 | – | – | |||||
Institutional Class Shares | 6.42 | 9.00(a) | 6.57 | 8.51 | 9.05 | 10.00 | |||||
Maximum Offering Price Per Share (100%/(100% - maximum sales charge) of net asset value adjusted to the nearest cent): | |||||||||||
Class A Shares | $6.60 | $9.10 | $7.40 | $8.72 | $9.28 | $10.06 | |||||
Class A1 Shares | – | – | – | – | – | 10.11 | |||||
Maximum Sales Charge: | |||||||||||
Class A Shares | 3.00(c)% | 3.00(c)% | 3.00(c)% | 2.50(d)% | 2.50(d)% | –% | |||||
Class A1 Shares | –% | –% | –% | –% | –% | 0.50(e)% |
(a) | The NAV shown above differs from the traded NAV on October 31, 2022 due to financial statement rounding and/or financial statement adjustments. |
(b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year due to contingent deferred sales charge. |
(c) | Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 1.00% will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid. |
(d) | Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 0.75% will be charged on Class A shares redeemed within 12 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid. |
(e) | Unless you are otherwise eligible to purchase Class A1 shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 0.25% will be charged on Class A1 shares redeemed within 12 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid. |
2022 Annual Report | 61 |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | ||||||
Investment Income: | |||||||||||
Dividend income | $— | $142,957 | $108,995 | $495 | $490 | $13,951 | |||||
Interest income | 2,424,194 | 400,952 | 6,350,687 | 1,801,635 | 10,890,339 | 9,284,525 | |||||
Securities lending income, net | — | — | 13,885 | — | — | — | |||||
Foreign tax withholding | (2,308) | (1,924) | — | — | — | — | |||||
Total Income | 2,421,886 | 541,985 | 6,473,567 | 1,802,130 | 10,890,829 | 9,298,476 | |||||
Expenses | |||||||||||
Investment advisory fees | 188,648 | 343,462 | 736,148 | 229,083 | 2,183,044 | 4,045,200 | |||||
Trustee fees | 2,791 | 6,334 | 30,001 | 5,166 | 30,942 | 77,447 | |||||
Administration fees | 25,153 | 45,795 | 80,984 | 43,122 | 274,940 | 647,232 | |||||
Legal fees | 3,934 | 6,891 | 4,322 | 6,691 | 49,266 | 101,711 | |||||
Audit fees | 44,691 | 73,130 | 54,060 | 40,820 | 42,981 | 50,950 | |||||
Printing fees | 7,786 | 19,915 | 54,318 | 10,459 | 9,850 | 8,130 | |||||
Custodian fees | 23,954 | 218,624 | 68,691 | 4,591 | 26,311 | 28,086 | |||||
Transfer agent fees | 9,603 | 33,559 | 78,375 | 45,223 | 44,553 | 50,633 | |||||
Distribution fees Class A | 407 | 40,757 | 177,077 | 13,545 | 45,612 | 337,271 | |||||
Distribution fees Class A1 | — | — | — | — | — | 1,194 | |||||
Distribution fees Class C | 211 | 4,281 | — | 2,547 | 263 | — | |||||
Distribution fees Class R | 14,302 | — | — | — | — | — | |||||
Sub-transfer agent and administrative service fees Institutional Class | 2,325 | 39,677 | 31,128 | 4,424 | 168,886 | 487,352 | |||||
Sub-transfer agent and administrative service fees Class A | 173 | 23,372 | 88,611 | 737 | 11,225 | 89,176 | |||||
Sub-transfer agent and administrative service fees Class A1 | — | — | — | — | — | 22 | |||||
Sub-transfer agent and administrative service fees Class C | 51 | 529 | — | 92 | 5 | — | |||||
Sub-transfer agent and administrative service fees Class R | 4,440 | — | — | — | — | — | |||||
Sub-transfer agent and administrative service fees Institutional Service Class | 80 | 7,531 | — | — | — | — | |||||
Fund accounting fees | 1,258 | 2,290 | 4,042 | 2,156 | 13,747 | 32,362 | |||||
Registration and filing fees | 64,742 | 54,397 | 14,397 | 53,112 | 75,433 | 68,740 | |||||
Other | 31,500 | 34,906 | 45,933 | 30,891 | 63,119 | 108,740 | |||||
Total expenses before reimbursed/waived expenses | 426,049 | 955,450 | 1,468,087 | 492,659 | 3,040,177 | 6,134,246 | |||||
Interest expense (Note 9) | 772 | — | — | 271 | 89,169 | 6,763 | |||||
Total operating expenses before reimbursed/waived expenses | 426,821 | 955,450 | 1,468,087 | 492,930 | 3,129,346 | 6,141,009 | |||||
Expenses reimbursed | (201,245) | (507,424) | (439,426) | (206,321) | (760,410) | (2,289,342) | |||||
Net expenses | 225,576 | 448,026 | 1,028,661 | 286,609 | 2,368,936 | 3,851,667 | |||||
Net Investment Income | 2,196,310 | 93,959 | 5,444,906 | 1,515,521 | 8,521,893 | 5,446,809 | |||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||||
Realized gain/(loss) on investment transactions | (4,548,223) | (3,418,697) | (7,779,414) | (277,553) | (14,412,641) | (1,209,824) | |||||
Realized gain/(loss) on futures contracts | — | 454,639 | — | — | — | — | |||||
Realized gain/(loss) on written options | — | 527,748 | — | — | — | — | |||||
Realized gain/(loss) on swap contracts | — | (5,935,528) | — | — | — | — | |||||
Realized gain/(loss) on forward foreign currency exchange contracts | 481,202 | 1,623,731 | 3,840,593 | — | — | — | |||||
Realized gain/(loss) on foreign currency transactions | (31,189) | (144,615) | (31,657) | — | — | — | |||||
Net realized gain/(loss) from investments, futures contracts, written options, swap contracts, forward foreign currency exchange contracts and foreign currency transactions | (4,098,210) | (6,892,722) | (3,970,478) | (277,553) | (14,412,641) | (1,209,824) Amounts listed as “–” are $0 or round to $0. See Notes to Financial Statements. |
62 | 2022 Annual Report |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | ||||||
Net change in unrealized appreciation/(depreciation) on investment transactions | $(7,091,113) | $(305,108) | $(19,036,762) | $(7,458,428) | $(27,251,780) | $(1,666,737) | |||||
Net change in unrealized appreciation/(depreciation) on swap contracts | — | 1,063,273 | — | — | — | — | |||||
Net change in unrealized appreciation/(depreciation) on futures contracts | — | (504,866) | — | — | — | — | |||||
Net change in unrealized appreciation/(depreciation) on written options | — | (40,287) | — | — | — | — | |||||
Net change in unrealized appreciation/(depreciation) on forward foreign currency exchange contracts | (131,810) | 851,249 | (248,330) | — | — | — | |||||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | 33,484 | (19,721) | 1,135 | — | — | — | |||||
Net change in unrealized appreciation/(depreciation) from investments, swap contracts, futures contracts, written options, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (7,189,439) | 1,044,540 | (19,283,957) | (7,458,428) | (27,251,780) | (1,666,737) | |||||
Net realized/unrealized gain/(loss) from investments, written options, swaps, futures contracts, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (11,287,649) | (5,848,182) | (23,254,435) | (7,735,981) | (41,664,421) | (2,876,561) | |||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $(9,091,339) | $(5,754,223) | $(17,809,529) | $(6,220,460) | $(33,142,528) | $2,570,248 |
2022 Annual Report | 63 |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $2,196,310 | $2,603,837 | $93,959 | $(36,994) | $5,444,906 | $6,840,306 | |||||
Net realized gain/(loss) from investments, written options, swap contracts, futures contracts, forward foreign currency exchange contracts and foreign currency transactions | (4,098,210) | 529,611 | (6,892,722) | 2,155,545 | (3,970,478) | 4,386,995 | |||||
Net change in unrealized appreciation/(depreciation) from investments, written options, swap contracts, futures contracts, forward foreign currency exchange contracts and translation of assets and liabilities denominated in foreign currencies | (7,189,439) | (710,792) | 1,044,540 | (2,313,338) | (19,283,957) | 2,796,725 | |||||
Changes in net assets resulting from operations | (9,091,339) | 2,422,656 | (5,754,223) | (194,787) | (17,809,529) | 14,024,026 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (9,069) | (11,387) | (754,555) | (2,060) | (3,663,466) | (3,908,060) | |||||
Class C | (1,603) | (3,466) | (17,763) | (401) | — | — | |||||
Class R | (226,156) | (139,135) | — | — | — | — | |||||
Institutional Service Class | (5,979) | (3,507) | (253,944) | (17,552) | — | — | |||||
Institutional Class | (2,465,471) | (1,744,572) | (1,692,167) | (47,938) | (2,564,748) | (3,324,472) | |||||
Change in net assets from shareholder distributions | (2,708,278) | (1,902,067) | (2,718,429) | (67,951) | (6,228,214) | (7,232,532) | |||||
Change in net assets from capital transactions | (4,019,156) | (12,242,793) | (41,858,918) | 70,424,619 | (11,569,430) | (15,070,803) | |||||
Change in net assets | (15,818,773) | (11,722,204) | (50,331,570) | 70,161,881 | (35,607,173) | (8,279,309) | |||||
Net Assets: | |||||||||||
Beginning of year | 40,683,587 | 52,405,791 | 91,937,022 | 21,775,141 | 137,315,253 | 145,594,562 | |||||
End of year | $24,864,814 | $40,683,587 | $41,605,452 | $91,937,022 | $101,708,080 | $137,315,253 |
64 | 2022 Annual Report |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $5,956,556 | $102,231 | $526,551 | $1,202,597 | $12,776,028 | $7,208,240 | |||||
Dividends reinvested | 8,688 | 8,606 | 663,592 | 1,986 | 3,297,835 | 3,748,272 | |||||
Cost of shares redeemed | (5,982,547) | (188,170) | (7,625,011) | (1,936,020) | (22,032,899) | (20,448,290) | |||||
Total Class A | (17,303) | (77,333) | (6,434,868) | 21,541,229 | (5,959,036) | (9,491,778) | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | — | 10,000 | — | 150,000 | — | — | |||||
Dividends reinvested | 1,603 | 3,466 | 17,763 | 401 | — | — | |||||
Cost of shares redeemed | (10,462) | (128,689) | (386,089) | (338,551) | — | — | |||||
Total Class C | (8,859) | (115,223) | (368,326) | (188,150) | — | — | |||||
Class R Shares | |||||||||||
Proceeds from shares issued | 246,597 | 925,269 | — | — | — | — | |||||
Dividends reinvested | 226,156 | 139,135 | — | — | — | — | |||||
Cost of shares redeemed | (830,139) | (963,082) | — | — | — | — | |||||
Total Class R | (357,386) | 101,322 | — | — | — | — | |||||
Institutional Service Class Shares | |||||||||||
Proceeds from shares issued | — | 417 | 434,256 | 437,987 | — | — | |||||
Dividends reinvested | 5,979 | 3,507 | 250,598 | 17,235 | — | — | |||||
Cost of shares redeemed | (126) | (179) | (1,550,394) | (1,699,571) | — | — | |||||
Total Institutional Service Class | 5,853 | 3,745 | (865,540) | (1,244,349) | — | — | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 1,225,528 | 5,782,692 | 977,914 | 1,954,089 | 63,863,945 | 44,607,948 | |||||
Dividends reinvested | 2,441,748 | 1,728,471 | 1,658,375 | 47,855 | 2,507,170 | 3,165,788 | |||||
Cost of shares redeemed | (7,308,737) | (19,666,467) | (36,826,473) | (8,224,961) | (71,981,509) | (53,352,761) | |||||
Total Institutional Class | (3,641,461) | (12,155,304) | (34,190,184) | 50,315,889 | (5,610,394) | (5,579,025) | |||||
Change in net assets from capital transactions: | $(4,019,156) | $(12,242,793) | $(41,858,918) | $70,424,619 | $(11,569,430) | $(15,070,803) |
2022 Annual Report | 65 |
abrdn Emerging Markets Debt Fund | abrdn Global Absolute Return Strategies Fund | abrdn Global High Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 838,964 | 10,842 | 55,689 | 114,890 | 1,561,497 | 811,602 | |||||
Reinvested | 1,078 | 895 | 66,293 | 188 | 412,682 | 420,325 | |||||
Redeemed | (848,607) | (19,884) | (773,840) | (186,840) | (2,698,533) | (2,293,954) | |||||
Total Class A Shares | (8,565) | (8,147) | (651,858) | 2,084,624 | (724,354) | (1,062,027) | |||||
Class C Shares | |||||||||||
Issued | – | 1,072 | – | 14,515 | – | – | |||||
Reinvested | 194 | 361 | 1,818 | 39 | – | – | |||||
Redeemed | (1,549) | (13,912) | (44,685) | (32,701) | – | – | |||||
Total Class C Shares | (1,355) | (12,479) | (42,867) | (18,147) | – | – | |||||
Class R Shares | |||||||||||
Issued | 32,090 | 98,091 | – | – | – | – | |||||
Reinvested | 28,051 | 14,545 | – | – | – | – | |||||
Redeemed | (106,996) | (102,497) | – | – | – | – | |||||
Total Class R Shares | (46,855) | 10,139 | – | – | – | – | |||||
Institutional Service Class Shares | |||||||||||
Issued | – | 44 | 45,858 | 40,843 | – | – | |||||
Reinvested | 744 | 364 | 24,836 | 1,623 | – | – | |||||
Redeemed | (17) | (19) | (162,173) | (160,987) | – | – | |||||
Total Institutional Service Class Shares | 727 | 389 | (91,479) | (118,521) | – | – | |||||
Institutional Class Shares | |||||||||||
Issued | 137,718 | 599,695 | 100,971 | 183,879 | 8,717,393 | 5,454,864 | |||||
Reinvested | 303,404 | 179,454 | 163,065 | 4,472 | 342,010 | 385,270 | |||||
Redeemed | (903,586) | (2,035,218) | (3,663,228) | (783,300) | (9,729,545) | (6,488,189) | |||||
Total Institutional Class Shares | (462,464) | (1,256,069) | (3,399,192) | 4,798,955 | (670,142) | (648,055) | |||||
Total change in shares: | (518,512) | (1,266,167) | (4,185,396) | 6,746,911 | (1,394,496) | (1,710,082) |
66 | 2022 Annual Report |
abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
From Investment Activities: | |||||||||||
Operations: | |||||||||||
Net investment income | $1,515,521 | $1,667,110 | $8,521,893 | $8,317,891 | $5,446,809 | $986,158 | |||||
Net realized gain/(loss) from investments | (277,553) | (298,789) | (14,412,641) | (1,101,812) | (1,209,824) | (195,697) | |||||
Net change in unrealized appreciation/(depreciation) from investments | (7,458,428) | 1,114,396 | (27,251,780) | 8,143,949 | (1,666,737) | 700,888 | |||||
Changes in net assets resulting from operations | (6,220,460) | 2,482,717 | (33,142,528) | 15,360,028 | 2,570,248 | 1,491,349 | |||||
Distributions to Shareholders From: | |||||||||||
Distributable earnings | |||||||||||
Class A | (140,410) | (165,909) | (416,033) | (464,084) | (691,462) | (47,583) | |||||
Class A1 | — | — | — | — | (2,430) | (123) | |||||
Class C | (4,679) | (4,873) | (414) | (118) | — | — | |||||
Institutional Service Class | (551) | (564) | — | — | — | — | |||||
Institutional Class | (1,372,129) | (1,602,524) | (8,124,949) | (7,826,608) | (4,742,311) | (945,195) | |||||
Change in net assets from shareholder distributions | (1,517,769) | (1,773,870) | (8,541,396) | (8,290,810) | (5,436,203) | (992,901) | |||||
Change in net assets from capital transactions | (6,590,631) | (4,613,579) | (209,708,294) | 146,984,308 | (266,309,347) | (237,411,963) | |||||
Change in net assets | (14,328,860) | (3,904,732) | (251,392,218) | 154,053,526 | (269,175,302) | (236,913,515) | |||||
Net Assets: | |||||||||||
Beginning of year | 61,069,500 | 64,974,232 | 446,622,812 | 292,569,286 | 955,135,967 | 1,192,049,482 | |||||
End of year | $46,740,640 | $61,069,500 | $195,230,594 | $446,622,812 | $685,960,665 | $955,135,967 |
2022 Annual Report | 67 |
abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Capital Transactions: | |||||||||||
Class A Shares | |||||||||||
Proceeds from shares issued | $18,422 | $110,423 | $1,322,146 | $7,657,773 | $37,177,427 | $50,785,379 | |||||
Dividends reinvested | 99,019 | 118,556 | 405,175 | 447,869 | 671,735 | 47,225 | |||||
Cost of shares redeemed | (450,934) | (946,959) | (7,030,507) | (9,184,933) | (74,784,580) | (152,699,342) | |||||
Total Class A | (333,493) | (717,980) | (5,303,186) | (1,079,291) | (36,935,418) | (101,866,738) | |||||
Class A1 Shares | |||||||||||
Proceeds from shares issued | — | — | — | — | — | — | |||||
Dividends reinvested | — | — | — | — | 2,416 | 124 | |||||
Cost of shares redeemed | — | — | — | — | (250,283) | (47,641) | |||||
Total Class A1 | — | — | — | — | (247,867) | (47,517) | |||||
Class C Shares | |||||||||||
Proceeds from shares issued | 2,528 | 67,854 | 2,492 | 26,994 | — | — | |||||
Dividends reinvested | 4,679 | 4,858 | 414 | 109 | — | — | |||||
Cost of shares redeemed | (68,323) | (31,260) | — | — | — | — | |||||
Total Class C | (61,116) | 41,452 | 2,906 | 27,103 | — | — | |||||
Institutional Service Class Shares | |||||||||||
Proceeds from shares issued | — | — | — | — | — | — | |||||
Dividends reinvested | 551 | 563 | — | — | — | — | |||||
Cost of shares redeemed | (12) | (15) | — | — | — | — | |||||
Total Institutional Service Class | 539 | 548 | — | — | — | — | |||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 446,936 | 884,579 | 107,043,551 | 268,144,226 | 442,073,742 | 657,065,229 | |||||
Dividends reinvested | 1,141,100 | 1,288,406 | 5,360,263 | 5,859,757 | 3,773,158 | 811,146 | |||||
Cost of shares redeemed | (7,784,597) | (6,110,584) | (316,811,828) | (125,967,487) | (674,972,962) | (793,374,083) | |||||
Total Institutional Class | (6,196,561) | (3,937,599) | (204,408,014) | 148,036,496 | (229,126,062) | (135,497,708) | |||||
Change in net assets from capital transactions: | $(6,590,631) | $(4,613,579) | $(209,708,294) | $146,984,308 | $(266,309,347) | $(237,411,963) |
68 | 2022 Annual Report |
abrdn Intermediate Municipal Income Fund | abrdn Short Duration High Yield Municipal Fund | abrdn Ultra Short Municipal Income Fund | |||||||||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | Year Ended October 31, 2022 | Year Ended October 31, 2021 | ||||||
Share Transactions: | |||||||||||
Class A Shares | |||||||||||
Issued | 2,023 | 11,090 | 132,314 | 747,277 | 3,693,629 | 5,029,554 | |||||
Reinvested | 10,853 | 11,975 | 41,925 | 43,706 | 66,770 | 4,677 | |||||
Redeemed | (47,334) | (95,424) | (718,079) | (898,694) | (7,427,627) | (15,121,758) | |||||
Total Class A Shares | (34,458) | (72,359) | (543,840) | (107,711) | (3,667,228) | (10,087,527) | |||||
Class A1 Shares | |||||||||||
Issued | – | – | – | – | – | – | |||||
Reinvested | – | – | – | – | 240 | 12 | |||||
Redeemed | – | – | – | – | (24,854) | (4,717) | |||||
Total Class A1 Shares | – | – | – | – | (24,614) | (4,705) | |||||
Class C Shares | |||||||||||
Issued | 257 | 6,862 | 268 | 2,638 | – | – | |||||
Reinvested | 514 | 492 | 43 | 11 | – | – | |||||
Redeemed | (7,189) | (3,155) | – | – | – | – | |||||
Total Class C Shares | (6,418) | 4,199 | 311 | 2,649 | – | – | |||||
Institutional Service Class Shares | |||||||||||
Issued | – | – | – | – | – | – | |||||
Reinvested | 61 | 57 | – | – | – | – | |||||
Redeemed | (2) | (2) | – | – | – | – | |||||
Total Institutional Service Class Shares | 59 | 55 | – | – | – | – | |||||
Institutional Class Shares | |||||||||||
Issued | 49,533 | 89,355 | 10,858,475 | 26,088,301 | 44,161,941 | 65,442,952 | |||||
Reinvested | 124,513 | 130,040 | 550,123 | 571,244 | 377,171 | 80,792 | |||||
Redeemed | (845,859) | (616,659) | (32,819,086) | (12,297,198) | (67,415,367) | (79,028,435) | |||||
Total Institutional Class Shares | (671,813) | (397,264) | (21,410,488) | 14,362,347 | (22,876,255) | (13,504,691) | |||||
Total change in shares: | (712,630) | (465,369) | (21,954,017) | 14,257,285 | (26,568,097) | (23,596,923) |
2022 Annual Report | 69 |
Investment Activities | Distributions | ||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | |||||||
Year Ended October 31, 2022 | $9.24 | $0.58 | $(2.80) | $ (2.22) | $ (0.62) | $ (0.62) | $ 6.40 |
Year Ended October 31, 2021 | 9.24 | 0.51 | (0.13) | 0.38 | (0.38) | (0.38) | 9.24 |
Year Ended October 31, 2020 | 9.72 | 0.43 | (0.58) | (0.15) | (0.33) | (0.33) | 9.24 |
Year Ended October 31, 2019 | 8.97 | 0.50 | 0.62 | 1.12 | (0.37) | (0.37) | 9.72 |
Year Ended October 31, 2018 | 10.27 | 0.47 | (1.26) | (0.79) | (0.51) | (0.51) | 8.97 |
Class C Shares | |||||||
Year Ended October 31, 2022 | 9.25 | 0.46 | (2.71) | (2.25) | (0.57) | (0.57) | 6.43 |
Year Ended October 31, 2021 | 9.19 | 0.42 | (0.08) | 0.34 | (0.28) | (0.28) | 9.25 |
Year Ended October 31, 2020 | 9.69 | 0.36 | (0.58) | (0.22) | (0.28) | (0.28) | 9.19 |
Year Ended October 31, 2019 | 8.90 | 0.44 | 0.64 | 1.08 | (0.29) | (0.29) | 9.69 |
Year Ended October 31, 2018 | 10.22 | 0.43 | (1.28) | (0.85) | (0.47) | (0.47) | 8.90 |
Class R Shares | |||||||
Year Ended October 31, 2022 | 9.19 | 0.48 | (2.69) | (2.21) | (0.61) | (0.61) | 6.37 |
Year Ended October 31, 2021 | 9.19 | 0.49 | (0.13) | 0.36 | (0.36) | (0.36) | 9.19 |
Year Ended October 31, 2020 | 9.69 | 0.39 | (0.57) | (0.18) | (0.32) | (0.32) | 9.19 |
Year Ended October 31, 2019 | 8.93 | 0.47 | 0.64 | 1.11 | (0.35) | (0.35) | 9.69 |
Year Ended October 31, 2018 | 10.25 | 0.46 | (1.28) | (0.82) | (0.50) | (0.50) | 8.93 |
Institutional Service Class Shares | |||||||
Year Ended October 31, 2022 | 9.25 | 0.53 | (2.71) | (2.18) | (0.66) | (0.66) | 6.41 |
Year Ended October 31, 2021 | 9.25 | 0.55 | (0.14) | 0.41 | (0.41) | (0.41) | 9.25 |
Year Ended October 31, 2020 | 9.76 | 0.46 | (0.59) | (0.13) | (0.38) | (0.38) | 9.25 |
Year Ended October 31, 2019 | 8.99 | 0.53 | 0.65 | 1.18 | (0.41) | (0.41) | 9.76 |
Year Ended October 31, 2018 | 10.30 | 0.52 | (1.28) | (0.76) | (0.55) | (0.55) | 8.99 |
Institutional Class Shares | |||||||
Year Ended October 31, 2022 | 9.26 | 0.54 | (2.71) | (2.17) | (0.67) | (0.67) | 6.42 |
Year Ended October 31, 2021 | 9.26 | 0.55 | (0.14) | 0.41 | (0.41) | (0.41) | 9.26 |
Year Ended October 31, 2020 | 9.76 | 0.46 | (0.58) | (0.12) | (0.38) | (0.38) | 9.26 |
Year Ended October 31, 2019 | 8.99 | 0.51 | 0.67 | 1.18 | (0.41) | (0.41) | 9.76 |
Year Ended October 31, 2018 | 10.29 | 0.52 | (1.28) | (0.76) | (0.54) | (0.54) | 8.99 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
70 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(25.31%) | $ 102 | 1.01%(e) | 1.64%(e) | 7.80% | 63.97% |
3.96% | 227 | 1.02%(e) | 1.51%(e) | 5.34% | 71.56% |
(1.53%) | 302 | 1.02%(e) | 1.44%(e) | 4.57% | 63.45% |
12.81% | 852 | 1.07% | 1.61% | 5.37% | 71.06% |
(7.91%) | 1,050 | 1.31% | 1.93% | 4.78% | 56.02% |
(25.64%) | 10 | 1.66%(e) | 2.53%(e) | 5.98% | 63.97% |
3.54% | 27 | 1.65%(e) | 2.25%(e) | 4.39% | 71.56% |
(2.34%) | 141 | 1.65%(e) | 2.16%(e) | 3.90% | 63.45% |
12.36% | 110 | 1.70% | 2.31% | 4.75% | 71.06% |
(8.58%) | 304 | 1.90% | 2.58% | 4.52% | 56.02% |
(25.33%)(f) | 2,239 | 1.32%(e) | 1.95%(e) | 6.35% | 63.97% |
3.74% | 3,662 | 1.30%(e) | 1.79%(e) | 5.22% | 71.56% |
(1.94%) | 3,572 | 1.30%(e) | 1.72%(e) | 4.28% | 63.45% |
12.69% | 4,318 | 1.31% | 1.85% | 5.05% | 71.06% |
(8.25%) | 3,826 | 1.55% | 2.17% | 4.79% | 56.02% |
(24.93%) | 62 | 0.77%(e) | 1.40%(e) | 6.92% | 63.97% |
4.25% | 83 | 0.77%(e) | 1.26%(e) | 5.75% | 71.56% |
(1.36%) | 79 | 0.65% | 1.07% | 4.96% | 63.45% |
13.43% | 24 | 0.68% | 1.22% | 5.66% | 71.06% |
(7.63%) | 20 | 0.89% | 1.52% | 5.38% | 56.02% |
(24.81%) | 22,451 | 0.66%(e) | 1.30%(e) | 7.05% | 63.97% |
4.32% | 36,685 | 0.65%(e) | 1.17%(e) | 5.77% | 71.56% |
(1.29%) | 48,312 | 0.65%(e) | 1.10%(e) | 4.95% | 63.45% |
13.40% | 46,573 | 0.67% | 1.25% | 5.43% | 71.06% |
(7.58%) | 18,720 | 0.90% | 1.58% | 5.41% | 56.02% |
2022 Annual Report | 71 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $10.29 | $(–)(e) | $(1.07) | $ (1.07) | $ (0.02) | $ (0.37) | $ (0.39) | $ 8.83 |
Year Ended October 31, 2021 | 10.29 | (0.03) | 0.05 | 0.02 | (0.02) | – | (0.02) | 10.29 |
Year Ended October 31, 2020 | 10.13 | 0.04 | 0.29 | 0.33 | (0.17) | – | (0.17) | 10.29 |
Year Ended October 31, 2019 | 10.41 | 0.17 | 0.25 | 0.42 | (0.60) | (0.10) | (0.70) | 10.13 |
Year Ended October 31, 2018 | 10.22 | 0.17 | 0.05 | 0.22 | – | (0.03) | (0.03) | 10.41 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 10.04 | (0.06) | (1.04) | (1.10) | – | (0.37) | (0.37) | 8.57 |
Year Ended October 31, 2021 | 10.10 | (0.11) | 0.06 | (0.05) | (0.01) | – | (0.01) | 10.04 |
Year Ended October 31, 2020 | 9.87 | (0.07) | 0.32 | 0.25 | (0.02) | – | (0.02) | 10.10 |
Year Ended October 31, 2019 | 10.09 | 0.10 | 0.24 | 0.34 | (0.46) | (0.10) | (0.56) | 9.87 |
Year Ended October 31, 2018 | 9.97 | 0.09 | 0.06 | 0.15 | – | (0.03) | (0.03) | 10.09 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 10.36 | 0.02 | (1.08) | (1.06) | (0.01) | (0.37) | (0.38) | 8.92 |
Year Ended October 31, 2021 | 10.35 | (0.02) | 0.06 | 0.04 | (0.03) | – | (0.03) | 10.36 |
Year Ended October 31, 2020 | 10.20 | 0.06 | 0.29 | 0.35 | (0.20) | – | (0.20) | 10.35 |
Year Ended October 31, 2019 | 10.47 | 0.19 | 0.27 | 0.46 | (0.63) | (0.10) | (0.73) | 10.20 |
Year Ended October 31, 2018 | 10.26 | 0.18 | 0.06 | 0.24 | – | (0.03) | (0.03) | 10.47 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 10.44 | 0.03 | (1.07) | (1.04) | (0.03) | (0.37) | (0.40) | 9.00 |
Year Ended October 31, 2021 | 10.43 | (–) | 0.05 | 0.05 | (0.04) | – | (0.04) | 10.44 |
Year Ended October 31, 2020 | 10.30 | 0.08 | 0.26 | 0.34 | (0.21) | – | (0.21) | 10.43 |
Year Ended October 31, 2019 | 10.55 | 0.20 | 0.27 | 0.47 | (0.62) | (0.10) | (0.72) | 10.30 |
Year Ended October 31, 2018 | 10.33 | 0.20 | 0.05 | 0.25 | – | (0.03) | (0.03) | 10.55 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Less than $0.005 per share. |
(f) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(g) | Interest expense is less than 0.001%. |
72 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(10.81%)(f) | $ 13,569 | 1.04% | 1.86% | (0.05%) | 180.82% |
0.18% | 22,522 | 0.96% | 2.93% | (0.31%) | 424.59% |
3.26% | 1,078 | 0.97%(g) | 2.52%(g) | 0.35% | 238.35% |
4.41% | 802 | 1.18%(g) | 3.04%(g) | 1.69% | 53.05% |
2.10% | 1,119 | 1.12%(g) | 2.79%(g) | 1.60% | 62.39% |
(11.38%)(f) | 41 | 1.65% | 2.58% | (0.66%) | 180.82% |
(0.54%) | 478 | 1.65% | 3.73% | (1.07%) | 424.59% |
2.54% | 664 | 1.66%(g) | 3.30%(g) | (0.69%) | 238.35% |
3.68% | 141 | 1.86%(g) | 3.83%(g) | 1.02% | 53.05% |
1.45% | 277 | 1.85%(g) | 3.65%(g) | 0.86% | 62.39% |
(10.62%)(f) | 5,153 | 0.78% | 1.60% | 0.23% | 180.82% |
0.33%(f) | 6,929 | 0.78% | 2.75% | (0.20%) | 424.59% |
3.45%(f) | 8,148 | 0.80%(g) | 2.35%(g) | 0.62% | 238.35% |
4.72% | 8,934 | 1.00%(g) | 2.86%(g) | 1.86% | 53.05% |
2.29% | 9,768 | 0.96%(g) | 2.63%(g) | 1.75% | 62.39% |
(10.42%)(f) | 22,843 | 0.65% | 1.58% | 0.26% | 180.82% |
0.46% | 62,007 | 0.65% | 2.65% | (0.04%) | 424.59% |
3.34%(f) | 11,885 | 0.66%(g) | 2.24%(g) | 0.74% | 238.35% |
4.82%(f) | 2,876 | 0.86%(g) | 2.84%(g) | 1.98% | 53.05% |
2.47% | 5,521 | 0.85%(g) | 2.70%(g) | 1.94% | 62.39% |
2022 Annual Report | 73 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Tax Return of Capital | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $8.84 | $0.38 | $(1.63) | $ (1.25) | $ (0.41) | $ – | $ (0.41) | $ 7.18 |
Year Ended October 31, 2021 | 8.45 | 0.39 | 0.40 | 0.79 | (0.40) | – | (0.40) | 8.84 |
Year Ended October 31, 2020 | 8.71 | 0.40 | (0.28) | 0.12 | (0.38) | – | (0.38) | 8.45 |
Year Ended October 31, 2019 | 8.74 | 0.44 | 0.19 | 0.63 | (0.58) | (0.08) | (0.66) | 8.71 |
Year Ended October 31, 2018 | 9.23 | 0.50 | (0.56) | (0.06) | (0.43) | – | (0.43) | 8.74 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 8.13 | 0.36 | (1.48) | (1.12) | (0.44) | – | (0.44) | 6.57 |
Year Ended October 31, 2021 | 7.81 | 0.38 | 0.37 | 0.75 | (0.43) | – | (0.43) | 8.13 |
Year Ended October 31, 2020 | 8.08 | 0.39 | (0.25) | 0.14 | (0.41) | – | (0.41) | 7.81 |
Year Ended October 31, 2019 | 8.16 | 0.43 | 0.17 | 0.60 | (0.61) | (0.07) | (0.68) | 8.08 |
Year Ended October 31, 2018 | 8.65 | 0.49 | (0.53) | (0.04) | (0.45) | – | (0.45) | 8.16 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(d) | Includes interest expense that amounts to less than 0.01%. |
74 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets (b) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(b) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (c) |
(14.49%) | $ 61,410 | 1.00% | 1.41% | 4.73% | 96.73% |
9.46% | 81,980 | 1.00% | 1.40% | 4.41% | 98.16% |
1.55% | 87,358 | 1.00%(d) | 1.45%(d) | 4.76% | 99.46% |
7.65% | 116,126 | 1.00%(d) | 1.33%(d) | 5.14% | 98.17% |
(0.66%) | 131,219 | 1.00%(d) | 1.22%(d) | 5.56% | 36.77% |
(14.20%) | 40,298 | 0.75% | 1.11% | 4.94% | 96.73% |
9.73% | 55,335 | 0.75% | 1.09% | 4.65% | 98.16% |
1.86% | 58,237 | 0.75%(d) | 1.10%(d) | 5.01% | 99.46% |
7.91% | 101,888 | 0.75%(d) | 1.05%(d) | 5.39% | 98.17% |
(0.43%) | 89,839 | 0.75%(d) | 0.95%(d) | 5.80% | 36.77% |
2022 Annual Report | 75 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $9.83 | $0.24 | $(1.33) | $ (1.09) | $ (0.24) | $ – | $ (0.24) | $ 8.50 |
Year Ended October 31, 2021 | 9.73 | 0.24 | 0.12 | 0.36 | (0.24) | (0.02) | (0.26) | 9.83 |
Year Ended October 31, 2020 | 9.92 | 0.26 | (0.18) | 0.08 | (0.26) | (0.01) | (0.27) | 9.73 |
Year Ended October 31, 2019 | 9.54 | 0.28 | 0.38 | 0.66 | (0.28) | –(f) | (0.28) | 9.92 |
Year Ended October 31, 2018 | 9.89 | 0.29 | (0.35) | (0.06) | (0.29) | – | (0.29) | 9.54 |
Class C Shares | ||||||||
Year Ended October 31, 2022 | 9.81 | 0.17 | (1.32) | (1.15) | (0.17) | – | (0.17) | 8.49 |
Year Ended October 31, 2021 | 9.71 | 0.16 | 0.12 | 0.28 | (0.16) | (0.02) | (0.18) | 9.81 |
Year Ended October 31, 2020 | 9.91 | 0.18 | (0.19) | (0.01) | (0.18) | (0.01) | (0.19) | 9.71 |
Year Ended October 31, 2019 | 9.52 | 0.21 | 0.39 | 0.60 | (0.21) | –(f) | (0.21) | 9.91 |
Year Ended October 31, 2018 | 9.87 | 0.21 | (0.35) | (0.14) | (0.21) | – | (0.21) | 9.52 |
Institutional Service Class Shares | ||||||||
Year Ended October 31, 2022 | 9.84 | 0.27 | (1.34) | (1.07) | (0.26) | – | (0.26) | 8.51 |
Year Ended October 31, 2021 | 9.74 | 0.26 | 0.12 | 0.38 | (0.26) | (0.02) | (0.28) | 9.84 |
Year Ended October 31, 2020 | 9.93 | 0.28 | (0.18) | 0.10 | (0.28) | (0.01) | (0.29) | 9.74 |
Year Ended October 31, 2019 | 9.54 | 0.30 | 0.40 | 0.70 | (0.31) | –(f) | (0.31) | 9.93 |
Year Ended October 31, 2018 | 9.89 | 0.31 | (0.35) | (0.04) | (0.31) | – | (0.31) | 9.54 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 9.84 | 0.26 | (1.33) | (1.07) | (0.26) | – | (0.26) | 8.51 |
Year Ended October 31, 2021 | 9.74 | 0.26 | 0.12 | 0.38 | (0.26) | (0.02) | (0.28) | 9.84 |
Year Ended October 31, 2020 | 9.93 | 0.28 | (0.18) | 0.10 | (0.28) | (0.01) | (0.29) | 9.74 |
Year Ended October 31, 2019 | 9.55 | 0.30 | 0.39 | 0.69 | (0.31) | –(f) | (0.31) | 9.93 |
Year Ended October 31, 2018 | 9.90 | 0.31 | (0.35) | (0.04) | (0.31) | – | (0.31) | 9.55 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Interest expense is less than 0.001%. |
(f) | Less than $0.005 per share. |
76 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(11.24%) | $ 4,919 | 0.76%(e) | 1.13%(e) | 2.59% | 20.98% |
3.62% | 6,028 | 0.76% | 1.12% | 2.38% | 53.74% |
0.83% | 6,670 | 0.76%(e) | 1.09%(e) | 2.63% | 55.63% |
7.05% | 7,526 | 0.76%(e) | 1.16%(e) | 2.84% | 58.33% |
(0.65%) | 7,141 | 0.80% | 1.08% | 2.95% | 14.38% |
(11.82%) | 217 | 1.50%(e) | 1.91%(e) | 1.83% | 20.98% |
2.87% | 314 | 1.50% | 1.88% | 1.64% | 53.74% |
(0.01%) | 270 | 1.50%(e) | 1.87%(e) | 1.89% | 55.63% |
6.39% | 252 | 1.50%(e) | 1.93%(e) | 2.12% | 58.33% |
(1.39%) | 279 | 1.55% | 1.87% | 2.20% | 14.38% |
(10.98%) | 18 | 0.50%(e) | 0.87%(e) | 2.87% | 20.98% |
3.90% | 20 | 0.50% | 0.86% | 2.64% | 53.74% |
1.09% | 20 | 0.50%(e) | 0.83%(e) | 2.87% | 55.63% |
7.43% | 19 | 0.50%(e) | 0.90%(e) | 3.10% | 58.33% |
(0.40%) | 18 | 0.54% | 0.82% | 3.21% | 14.38% |
(10.99%) | 41,587 | 0.50%(e) | 0.88%(e) | 2.84% | 20.98% |
3.90% | 54,707 | 0.50% | 0.87% | 2.64% | 53.74% |
1.10% | 58,015 | 0.50%(e) | 0.84%(e) | 2.89% | 55.63% |
7.32% | 63,256 | 0.50%(e) | 0.90%(e) | 3.11% | 58.33% |
(0.39%) | 65,428 | 0.54% | 0.83% | 3.21% | 14.38% |
2022 Annual Report | 77 |
Investment Activities | Distributions | ||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Tax Return of Capital | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |
Class A Shares | |||||||||
Year Ended October 31, 2022 | $10.26 | $0.22 | $(1.20) | $ (0.98) | $ (0.23) | $ – | $ (0.23) | $ – | $ 9.05 |
Year Ended October 31, 2021 | 9.99 | 0.22 | 0.27 | 0.49 | (0.22) | – | (0.22) | – | 10.26 |
Year Ended October 31, 2020 | 10.25 | 0.29 | (0.27) | 0.02 | (0.28) | – | (0.28) | – | 9.99 |
Year Ended October 31, 2019 | 10.07 | 0.30 | 0.18 | 0.48 | (0.30) | – | (0.30) | – | 10.25 |
Year Ended October 31, 2018 | 10.24 | 0.31 | (0.17) | 0.14 | (0.31) | –(f) | (0.31) | –(f) | 10.07 |
Class C Shares | |||||||||
Year Ended October 31, 2022 | 10.27 | 0.15 | (1.22) | (1.07) | (0.15) | – | (0.15) | – | 9.05 |
Year Ended October 31, 2021(h) | 10.13 | 0.12 | 0.14 | 0.26 | (0.12) | – | (0.12) | – | 10.27 |
Institutional Class Shares | |||||||||
Year Ended October 31, 2022 | 10.26 | 0.24 | (1.20) | (0.96) | (0.25) | – | (0.25) | – | 9.05 |
Year Ended October 31, 2021 | 9.99 | 0.24 | 0.27 | 0.51 | (0.24) | – | (0.24) | – | 10.26 |
Year Ended October 31, 2020 | 10.25 | 0.31 | (0.26) | 0.05 | (0.31) | – | (0.31) | – | 9.99 |
Year Ended October 31, 2019 | 10.07 | 0.32 | 0.18 | 0.50 | (0.32) | – | (0.32) | – | 10.25 |
Year Ended October 31, 2018 | 10.24 | 0.33 | (0.16) | 0.17 | (0.34) | –(f) | (0.34) | –(f) | 10.07 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(e) | Includes interest expense that amounts to 0.03% for the year ended October 31, 2022. Includes interest expense that amounts to less than 0.01% for the year ended October 31, 2020. Includes interest expense that amounts to 0.01% for the year ended October 31, 2018. |
(f) | Less than $0.005 per share. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | For the period from December 21, 2020 (commencement of operations) through October 31, 2021. |
78 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (b) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(c) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (d) |
(9.71%) | $ 14,399 | 0.93%(e) | 1.17%(e) | 2.27% | 57.98% |
4.92% | 21,907 | 0.90% | 1.14% | 2.14% | 95.56% |
0.25% | 22,417 | 0.90%(e) | 1.12%(e) | 2.84% | 149.01% |
4.78% | 27,577 | 0.90% | 1.13% | 2.96% | 104.52% |
1.42% | 29,433 | 0.91%(e) | 1.11%(e) | 3.03% | 86.19% |
(10.47%)(g) | 27 | 1.68%(e) | 1.87%(e) | 1.57% | 57.98% |
2.52% | 27 | 1.65% | 1.86% | 1.33% | 95.56% |
(9.48%) | 180,805 | 0.68%(e) | 0.90%(e) | 2.49% | 57.98% |
5.18% | 424,689 | 0.65% | 0.88% | 2.37% | 95.56% |
0.51% | 270,153 | 0.65%(e) | 0.87%(e) | 3.07% | 149.01% |
5.05% | 229,716 | 0.65% | 0.90% | 3.19% | 104.52% |
1.67% | 177,810 | 0.66%(e) | 0.87%(e) | 3.27% | 86.19% |
2022 Annual Report | 79 |
Investment Activities | Distributions | |||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |
Class A Shares | ||||||||
Year Ended October 31, 2022 | $10.09 | $0.05(d) | $(0.02) | $ 0.03 | $ (0.06) | $ (0.06) | $ – | $ 10.06 |
Year Ended October 31, 2021 | 10.09 | –(d)(f) | (–)(f) | (–)(f) | –(f) | –(f) | – | 10.09 |
Year Ended October 31, 2020 | 10.10 | 0.07(d) | –(f) | 0.07 | (0.08) | (0.08) | – | 10.09 |
Year Ended October 31, 2019 | 10.09 | 0.13(d) | 0.01 | 0.14 | (0.13) | (0.13) | – | 10.10 |
Year Ended October 31, 2018 | 10.09 | 0.11(d) | – | 0.11 | (0.11) | (0.11) | –(f) | 10.09 |
Class A1 Shares | ||||||||
Year Ended October 31, 2022 | 10.10 | 0.05(d) | (0.03) | 0.02 | (0.06) | (0.06) | – | 10.06 |
Year Ended October 31, 2021 | 10.10 | –(d)(f) | (–)(f) | (–)(f) | –(f) | –(f) | – | 10.10 |
Year Ended October 31, 2020 | 10.10 | 0.03(d) | 0.05 | 0.08 | (0.08) | (0.08) | – | 10.10 |
Year Ended October 31, 2019(g) | 10.10 | 0.08 | –(f) | 0.08 | (0.08) | (0.08) | – | 10.10 |
Institutional Class Shares | ||||||||
Year Ended October 31, 2022 | 10.04 | 0.07(d) | (0.03) | 0.04 | (0.08) | (0.08) | – | 10.00 |
Year Ended October 31, 2021 | 10.03 | 0.01(d) | 0.01 | 0.02 | (0.01) | (0.01) | – | 10.04 |
Year Ended October 31, 2020 | 10.04 | 0.10(d) | (0.01) | 0.09 | (0.10) | (0.10) | – | 10.03 |
Year Ended October 31, 2019 | 10.04 | 0.15(d) | – | 0.15 | (0.15) | (0.15) | – | 10.04 |
Year Ended October 31, 2018 | 10.04 | 0.130(d) | – | 0.13 | (0.13) | (0.13) | –(f) | 10.04 |
(a) | Excludes sales charge. |
(b) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(c) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(d) | Net investment income/(loss) is based on average shares outstanding during the period. |
(e) | Includes interest expense that amounts to less than 0.01%. |
(f) | Less than $0.005 per share. |
(g) | For the period from February 28, 2019 (commencement of operations) through October 31, 2019. |
80 | 2022 Annual Report |
Ratios/Supplemental Data | |||||
Total Return (a) | Net Assets at End of Period (000's) | Ratio of Expenses (Net of Reimbursements/ Waivers) to Average Net Assets | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets(b) | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover (c) |
0.30% | $ 123,920 | 0.60%(e) | 0.95%(e) | 0.52% | 320.87% |
0.02% | 161,362 | 0.54%(e) | 0.96%(e) | 0.02% | 261.23% |
0.69% | 263,068 | 0.70%(e) | 0.94%(e) | 0.72% | 299.40% |
1.36% | 204,501 | 0.70% | 0.95% | 1.25% | 231.49% |
1.09% | 223,255 | 0.70% | 0.92% | 1.08% | 177.63% |
0.20% | 261 | 0.60%(e) | 0.89%(e) | 0.52% | 320.87% |
0.02% | 510 | 0.54%(e) | 0.89%(e) | 0.02% | 261.23% |
0.79% | 558 | 0.70%(e) | 0.90%(e) | 0.34% | 299.40% |
0.81% | 35 | 0.70% | 0.94% | 1.13% | 231.49% |
0.37% | 561,780 | 0.44%(e) | 0.71%(e) | 0.71% | 320.87% |
0.21% | 793,264 | 0.45%(e) | 0.71%(e) | 0.11% | 261.23% |
0.94% | 928,424 | 0.45%(e) | 0.71%(e) | 0.98% | 299.40% |
1.51% | 680,881 | 0.45% | 0.72% | 1.50% | 231.49% |
1.34% | 802,312 | 0.45% | 0.67% | 1.32% | 177.63% |
2022 Annual Report | 81 |
October 31, 2022
• | abrdn Emerging Markets Debt Fund (formerly, Aberdeen Emerging Markets Debt Fund) (“Emerging Markets Debt Fund”) |
• | abrdn Global Absolute Return Strategies Fund (formerly, Aberdeen Global Absolute Return Strategies Fund) (“Global Absolute Return Strategies Fund”) |
• | abrdn Global High Income Fund (formerly, Aberdeen Global High Income Fund) ("Global High Income Fund") |
• | abrdn Intermediate Municipal Income Fund (formerly, Aberdeen Intermediate Municipal Income Fund) ("Intermediate Municipal Income Fund") |
• | abrdn Short Duration High Yield Municipal Fund (formerly, Aberdeen Short Duration High Yield Municipal Fund) ("Short Duration High Yield Municipal Fund") |
• | abrdn Ultra Short Municipal Income Fund (formerly, Aberdeen Ultra Short Municipal Income Fund) ("Ultra Short Municipal Income Fund") |
a. | Security Valuation: |
The Funds value their securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Funds' 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. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board of Trustees (the "Board") designated abrdn Inc. ("abrdn" or the "Adviser") as the valuation designee ("Valuation Designee") for the Funds to perform the fair value determinations relating to Fund investments for which market quotations are not readily available. | |
Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). 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. | |
In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. |
82 | 2022 Annual Report |
October 31, 2022
Foreign equity securities that are traded on foreign exchanges that close prior to the 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. These valuation factors are used when pricing a Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time a 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. | |
Long-term debt and other fixed income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size, and the strategies employed by the Adviser as Valuation Designee generally trade in round lot sizes. In certain circumstances, fixed income securities may be held or transactions may be conducted in smaller, “odd lot” sizes. Odd lots may trade at lower or occasionally higher prices than institutional round lot trades. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost if it represents the best approximation for fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments. | |
Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Funds sweep available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act and has an objective, which is not guaranteed, to maintain a $1.00 per share net asset value (“NAV”). Registered investment companies are valued at their NAV as reported by such company. Generally, these investment types are categorized as Level 1 investments. | |
Derivative instruments are generally valued according to the following procedures. Exchange traded derivatives are generally Level 1 investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward currency exchange contracts are generally valued based on the current spot exchange rates and the forward exchange rate points (ex. 1-month, 3-month) that are obtained from an approved pricing agent. Based on the actual settlement dates of the forward contracts held, an interpolated value of the forward points is combined with the spot exchange rate to derive the valuation. Futures contracts are generally valued at the most recent settlement price as of NAV determination. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). Exchange-traded options are valued at the last quoted sales price. In the absence of a sales price, options are valued at the mean of the bid/ask price quoted at the close on the exchange on which the options trade. When market quotations or exchange rates are not readily available, or if the Adviser concludes that such market quotations do not accurately reflect fair value, the fair value of a Fund’s assets are determined in good faith in accordance with the Valuation Procedures. | |
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 closed before the Valuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. Under normal circumstances the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). A security that has been fair valued by the Adviser may be classified as Level 2 or Level 3 depending on the nature of the inputs. | |
The three-level hierarchy of inputs is summarized below: |
• | Level 1 - quoted prices in active markets for identical investments; |
• | Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or |
• | Level 3 - significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments). |
2022 Annual Report | 83 |
October 31, 2022
Security Type | Standard Inputs |
Debt and other fixed-income securities | Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, credit quality, yield, and maturity. |
Foreign equities utilizing a fair value factor | Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. |
Forward foreign currency contracts | Forward exchange rate quotations. |
Swap agreements | Market information pertaining to the underlying reference assets, i.e., credit spreads, credit event probabilities, fair values, forward rates, and volatility measures. |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Emerging Markets Debt Fund | ||||
Assets | ||||
Investments in Securities | ||||
Corporate Bonds | $– | $6,580,262 | $– | $6,580,262 |
Government Bonds | – | 17,032,040 | – | 17,032,040 |
Warrants | – | – | – | – |
Total Investments | $– | $23,612,302 | $– | $23,612,302 |
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $56,132 | $– | $56,132 |
Total Assets | $– | $23,668,434 | $– | $23,668,434 |
Liabilities | ||||
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $(76,231) | $– | $(76,231) |
Total Liabilities | $– | $(76,231) | $– | $(76,231) |
84 | 2022 Annual Report |
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Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Global Absolute Return Strategies Fund | ||||
Assets | ||||
Investments in Securities | ||||
Common Stocks | $6,008,644 | $1,564,798 | $– | $7,573,442 |
Government Bonds | – | 14,927,363 | – | 14,927,363 |
Short-Term Investments | 1,352,597 | 14,686,401 | – | 16,038,998 |
Total Investments | $7,361,241 | $31,178,562 | $– | $38,539,803 |
Other Financial Instruments | ||||
Centrally Cleared Credit Default Swap Contracts | $– | $64,074 | $– | $64,074 |
Centrally Cleared Interest Rate Swap Agreements | – | 918,216 | – | 918,216 |
Foreign Currency Exchange Contracts | – | 2,378,668 | – | 2,378,668 |
Futures Contracts | 462,412 | – | – | 462,412 |
Over the Counter Total Return Swaps | – | 231,673 | – | 231,673 |
Total Other Financial Instruments | $462,412 | $3,592,631 | $– | $4,055,043 |
Total Assets | $7,823,653 | $34,771,193 | $– | $42,594,846 |
Liabilities | ||||
Other Financial Instruments | ||||
Centrally Cleared Credit Default Swap Contracts | $– | $32,213 | $– | $32,213 |
Centrally Cleared Interest Rate Swap Agreements | – | (1,139,626) | – | (1,139,626) |
Foreign Currency Exchange Contracts | – | (1,392,028) | – | (1,392,028) |
Futures Contracts | (363,869) | – | – | (363,869) |
Over the Counter Total Return Swaps | – | (117,906) | – | (117,906) |
Total Liabilities | $(363,869) | $(2,617,347) | $– | $(2,981,216) |
Global High Income Fund | ||||
Assets | ||||
Investments in Securities | ||||
Corporate Bonds | $– | $91,045,483 | $– | $91,045,483 |
Exchange-Traded Funds | 5,058,593 | – | – | 5,058,593 |
Short-Term Investment | 14,966,734 | – | – | 14,966,734 |
Total Investments | $20,025,327 | $91,045,483 | $– | $111,070,810 |
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $6,287 | $– | $6,287 |
Total Assets | $20,025,327 | $91,051,770 | $– | $111,077,097 |
Liabilities | ||||
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $(335,428) | $– | $(335,428) |
Total Liabilities | $– | $(335,428) | $– | $(335,428) |
2022 Annual Report | 85 |
October 31, 2022
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Intermediate Municipal Income Fund | ||||
Assets | ||||
Investments in Securities | ||||
Municipal Bonds | $– | $45,965,141 | $– | $45,965,141 |
Short-Term Investment | 128,379 | – | – | 128,379 |
Total Investments | $128,379 | $45,965,141 | $– | $46,093,520 |
Total Assets | $128,379 | $45,965,141 | $– | $46,093,520 |
Short Duration High Yield Municipal Fund | ||||
Assets | ||||
Investments in Securities | ||||
Municipal Bonds | $– | $192,683,294 | $– | $192,683,294 |
Total Investments | $– | $192,683,294 | $– | $192,683,294 |
Total Assets | $– | $192,683,294 | $– | $192,683,294 |
Ultra Short Municipal Income Fund | ||||
Assets | ||||
Investments in Securities | ||||
Municipal Bonds | $– | $699,895,475 | $– | $699,895,475 |
Short-Term Investments | 95,523 | 20,000,000 | – | 20,095,523 |
Total Investments | $95,523 | $719,895,475 | $– | $719,990,998 |
Total Assets | $95,523 | $719,895,475 | $– | $719,990,998 |
b. | Restricted Securities: |
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds 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 Funds, 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. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments within the Statements of Operations. |
d. | Derivative Financial Instruments: |
Certain Funds are authorized to use derivatives to manage currency risk, credit risk, and interest rate risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under |
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the contract. The use of derivative instruments involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of Assets and Liabilities. | |
Forward Foreign Currency Exchange Contracts | |
A forward foreign currency exchange contract (“forward contract”) involves an obligation to purchase and sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Forward contracts are used to manage a Funds' currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to the benchmark. The use of forward contracts allows the separation of decision-making between markets and their currencies. | |
The forward contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent pricing provider. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. These realized and unrealized gains and losses are reported on the Statement of Operations. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or from unanticipated movements in exchange rates. These realized and unrealized gains and losses are reported on the Statements of Operations. During the year ended October 31, 2022, the Funds used forward contracts for the purposes of efficient portfolio management and managing active currency risk relative to the benchmark, the latter of which involves both hedging currency risk and adding currency risk in excess of underlying bond positions. They are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to the benchmark. The use of forward contracts allows the separation of decision-making between markets and their currencies. | |
While a Fund may enter into forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while a Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for a Fund than if it had not engaged in any such transactions. Moreover, there may be an imperfect correlation between a Fund’s portfolio holdings or securities quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent a Fund from achieving a complete hedge, which will expose the Fund to the risk of foreign exchange loss. | |
Forward contracts are subject to the risk that the counterparties to such contracts may default on their obligations. Since a forward foreign currency exchange contract is not guaranteed by an exchange or clearing house, a default on the contract would deprive a Fund of unrealized profits, transaction costs or the benefits of a currency hedge or force a Fund to cover its purchase or sale commitments, if any, at the market price at the time of the default. | |
Futures Contracts | |
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities, or securities that a Fund intends to purchase, against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of a Fund’s NAV after taking into account unrealized profits and unrealized losses on any such contract into which it has entered. | |
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This payment is known as "initial margin". Subsequent payments, known as “variation margin,” are calculated each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. An unrealized gain/(loss) equal to the variation margin is recognized on a daily basis. When the contract expires or is closed, the gain/(loss) is realized and is presented in the Statements of Operations as a net realized gain/(loss) on futures contracts. Futures contracts are valued daily at their last quoted sale price on the exchange on which they are traded. | |
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. | |
There are significant risks associated with a Fund’s use of futures contracts, including the following: (1) the success of a hedging strategy may depend on the ability of a Fund's investment adviser and/or sub-adviser to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the movement in the price |
2022 Annual Report | 87 |
October 31, 2022
of futures contracts, interest rates and the value/market value of the securities held by a Fund; (3) there may not be a liquid secondary market for a futures contract; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts. In addition, should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. | |
For the fiscal year ended October 31, 2022, the Global Absolute Return Strategies Fund invested in futures for both investment and hedging purposes. | |
Options | |
Options are instruments that provide a right to buy (call) or sell (put) a particular security or an index of securities at a fixed price within a certain time period. Options differ from forward and futures contracts in that the buyer of the option has no obligation to perform under the contract. An option is out-of-the money if the exercise price of the option is above, in the case of a call option, or below, in the case of a put option, the current price (or interest rate or yield for certain options) of the referenced security or instrument. Use of put and call options may result in losses to a Fund, force the sale or purchase of portfolio securities at inopportune times or for prices higher than (in the case of put options) or lower than (in the case of call options) current market values, limit the amount of appreciation a Fund can realize on its investments or cause a Fund to hold a security it might otherwise sell. | |
For the fiscal year ended October 31, 2022, the Global Absolute Return Strategies Fund invested in options for both investment and hedging purposes. | |
Swaps | |
A swap is an agreement that obligates two parties to exchange a series of cash flows and/or meet certain obligations at specified intervals based upon or calculated by reference to changes in specified prices or rates (interest rates in the case of interest rate swaps, currency exchange rates in the case of currency swaps) or the occurrence of a credit event with respect to an underlying reference obligation (in the case of a credit default swap) for a specified amount of an underlying asset or notional principal amount. A Fund will enter into swaps only on a net basis, which means that the two payment streams are netted out, with a Fund receiving or paying, as the case may be, only the amount of the difference between the two payments. Except for currency swaps and credit default swaps, the notional principal amount is used solely to calculate the payment streams but is not exchanged. With respect to currency swaps, actual principal amounts of currencies may be exchanged by the counterparties at the initiation, and again upon the termination of the transaction. | |
Traditionally, swaps were customized, privately negotiated agreements executed between two parties (“OTC Swaps”) but since 2013, certain swaps are required to be cleared pursuant to rules and regulations related to the Dodd – Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) and/or Regulation (EU) No 648/2012 on OTC Derivatives, Central Counterparties and Trade Repositories (“EMIR”) (“Cleared Swaps”). Like OTC Swaps, Cleared Swaps are negotiated bilaterally. Unlike OTC Swaps, the act of clearing results in two swaps executed between each of the parties and a central counterparty (“CCP”), and thus the counterparty credit exposure of the parties is to the CCP rather than to one another. Upon entering into a Cleared Swap, a Fund is required to pledge an amount of cash and/or other assets equal to a certain percentage of the contract amount. This payment is known as “initial margin”. Subsequent payments, known as “variation margin,” are calculated each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. An unrealized gain/(loss) equal to the variation margin is recognized on a daily basis. When the contract matures or is terminated, the gain or loss is realized and is presented in the Statements of Operations as a net realized gain or loss on swap contracts. As of March 2017, a Fund may be required to provide variation and/or initial margin for OTC Swaps pursuant to further rules and regulations related to Dodd Frank and EMIR. The margin requirements associated with OTC Swaps and Cleared Swaps may not be the same. | |
Entering into swap agreements involves, to varying degrees, elements of credit, market and interest rate risk in excess of the amounts reported on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform and that there may be unfavorable changes in the value of the index or securities underlying the agreement. The Funds’ maximum risk of loss from counterparty risk related to swaps is the fair value of the contract. This risk is mitigated by the posting of collateral by the counterparties to the Funds to cover the Funds’ exposure to the counterparty. | |
Interest Rate Swaps | |
A Fund uses interest rate swap contracts to manage its exposure to interest rates. Interest rate swap contracts typically represent the exchange between a Fund and a counterparty of respective commitments to make variable rate and fixed rate payments with respect to a notional amount of principal. Interest rate swap contracts may have a term that is greater than one year, but typically require periodic interim settlement in cash, at which time the specified value of the variable interest rate is reset for the next settlement period. Net payments of |
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interest are recorded as realized gains or losses. During the period that the swap contract is open, the contract is marked-to-market as the net amount due to or from a Fund and changes in the value of swap contracts are recorded as unrealized gains or losses. | |
During the fiscal year ended October 31, 2022, the Global Absolute Return Strategies Fund held interest rate swaps to implement investment views and hedge interest rate risk. | |
Credit Default Swaps | |
A credit default swap is an agreement whereby one party, the buyer, is obligated to pay the other party, the seller, a periodic stream of payments over the term of the contract in return for a contingent payment upon the occurrence of a credit event with respect to an underlying reference obligation. A Fund might use credit default swap contracts to limit or to reduce risk exposure of the Fund to defaults of corporate and sovereign issues (i.e., to reduce risk when the Fund owns or has exposure to such issuers). A Fund also might use credit default swap contracts to create direct or synthetic short or long exposure to domestic or foreign corporate debt securities or certain sovereign debt securities to which the Fund is not otherwise exposed. | |
During the fiscal year ended October 31, 2022, the Global Absolute Return Strategies Fund held credit default swaps to implement investment views and hedge the Fund’s exposure to the credit market. |
Summary of Derivative Instruments | |
Certain Funds may use derivatives for various purposes as noted above. The following is a summary of the fair value of derivative instruments, not accounted for as hedging instruments, as of October 31, 2022: | |
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Emerging Markets Debt Fund | ||||||
Assets: | ||||||
Unrealized appreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $56,132 | $– | $– | $– | $56,132 |
Total | $– | $56,132 | $– | $– | $– | $56,132 |
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $76,231 | $– | $– | $– | $76,231 |
Total | $– | $76,231 | $– | $– | $– | $76,231 |
Global Absolute Return Strategies Fund | ||||||
Assets: | ||||||
Unrealized appreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $2,378,668 | $– | $– | $– | $2,378,668 |
Futures Contracts | – | – | – | 462,412* | – | 462,412 |
Swap Contracts | 654,219* | – | 163,300* | 231,673 | – | 1,049,192 |
Total | $654,219 | $2,378,668 | $163,300 | $694,085 | $– | $3,890,272 |
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $1,392,028 | $– | $– | $– | $1,392,028 |
Futures Contracts | 359,911* | – | – | 3,958* | – | 363,869 |
Swap Contracts | 1,000,612* | – | 177,653* | 117,906 | – | 1,296,171 |
Total | $1,360,523 | $1,392,028 | $177,653 | $121,864 | $– | $3,052,068 |
2022 Annual Report | 89 |
October 31, 2022
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Global High Income Fund | ||||||
Assets: | ||||||
Unrealized appreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $6,287 | $– | $– | $– | $6,287 |
Total | $– | $6,287 | $– | $– | $– | $6,287 |
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $335,428 | $– | $– | $– | $335,428 |
Total | $– | $335,428 | $– | $– | $– | $335,428 |
* | The values shown reflect unrealized appreciation/(depreciation) and the values shown on the Statement of Assets and Liabilities reflect variation margin. |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | Gross Amounts Not Offset in the Statement of Assets and Liabilities | |||||||
Gross Amounts of Assets Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received(1) | Net Amount(2) | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged(1) | Net Amount(2) | |
Description | Assets | Liabilities | ||||||
Emerging Markets Debt Fund | ||||||||
Foreign Currency Exchange Contracts(3) | ||||||||
Deutsche Bank AG | $– | $– | $– | $– | $1,396 | $– | $– | $1,396 |
Morgan Stanley & Co. | 4,802 | (2,845) | – | 1,957 | 2,845 | (2,845) | – | – |
Royal Bank of Canada | – | – | – | – | 30,313 | – | – | 30,313 |
UBS AG | 51,330 | (41,677) | (9,653) | – | 41,677 | (41,677) | – | – |
90 | 2022 Annual Report |
October 31, 2022
Gross Amounts Not Offset in the Statement of Assets and Liabilities | Gross Amounts Not Offset in the Statement of Assets and Liabilities | |||||||
Gross Amounts of Assets Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received(1) | Net Amount(2) | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged(1) | Net Amount(2) | |
Description | Assets | Liabilities | ||||||
Global Absolute Return Strategies Fund | ||||||||
Foreign Currency Exchange Contracts(3) | ||||||||
Barclays Bank plc | $159,095 | $(57,928) | $– | $101,167 | $57,928 | $(57,928) | $– | $– |
Citibank N.A. | 199,396 | (60,512) | – | 138,884 | 60,512 | (60,512) | – | – |
Goldman Sachs & Co. | 133,020 | (29,129) | – | 103,891 | 29,129 | (29,129) | – | – |
HSBC Bank plc | 455,968 | (225,947) | – | 230,021 | 225,947 | (225,947) | – | – |
JPMorgan Chase Bank N.A. | 20,942 | (20,942) | – | – | 275,933 | (20,942) | – | 254,991 |
Morgan Stanley & Co. | 1,118,427 | (259,646) | – | 858,781 | 259,646 | (259,646) | – | – |
UBS AG | 291,820 | (291,820) | – | – | 482,933 | (291,820) | – | 191,113 |
Over the Counter Total Return Swaps(3) | ||||||||
Citibank N.A. | 11,471 | – | – | 11,471 | – | – | – | – |
Goldman Sachs & Co. | 220,202 | (117,906) | – | 102,296 | 117,906 | (117,906) | – | – |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | Gross Amounts Not Offset in the Statement of Assets and Liabilities | |||||||
Gross Amounts of Assets Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received(1) | Net Amount(2) | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged(1) | Net Amount(2) | |
Description | Assets | Liabilities | ||||||
Global High Income Fund | ||||||||
Foreign Currency Exchange Contracts(3) | ||||||||
JPMorgan Chase Bank N.A. | $183 | $– | $– | $183 | $– | $– | $– | $– |
Morgan Stanley & Co. | 6,104 | (6,104) | – | – | 135,658 | (6,104) | – | 129,554 |
Royal Bank of Canada | – | – | – | – | 2,056 | – | – | 2,056 |
UBS AG | – | – | – | – | 197,714 | – | – | 197,714 |
(1) | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
(2) | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master netting agreement with the same legal entity. |
(3) | Includes financial instrument which are not subject to a master netting arrangement across funds, or another similar arrangement. |
2022 Annual Report | 91 |
October 31, 2022
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Emerging Markets Debt Fund | ||||||
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Forward Currency Contracts | $– | $481,202 | $– | $– | $– | $481,202 |
Total | $– | $481,202 | $– | $– | $– | $481,202 |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Forward Currency Contracts | $– | $(131,810) | $– | $– | $– | $(131,810) |
Total | $– | $(131,810) | $– | $– | $– | $(131,810) |
Global Absolute Return Strategies Fund | ||||||
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Purchased Options | $– | $– | $– | $(1,226,808) | $– | $(1,226,808) |
Futures Contracts | (990,400) | – | – | 1,445,039 | – | 454,639 |
Forward Currency Contracts | – | 1,623,731 | – | – | – | 1,623,731 |
Swap Contracts | (3,294,912) | – | (498,724) | (2,141,892) | – | (5,935,528) |
Written Options | – | – | – | 1,214,188 | – | 1,214,188 |
Written Swaption Contracts | (686,440) | – | – | – | – | (686,440) |
Total | $(4,971,752) | $1,623,731 | $(498,724) | $(709,473) | $– | $(4,556,218) |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Futures Contracts | $(359,911) | $– | $– | $(144,955) | $– | $(504,866) |
Forward Currency Contracts | – | 851,249 | – | – | – | 851,249 |
Swap Contracts | 1,068,059 | – | (150,215) | 145,429 | – | 1,063,273 |
Written Options | – | – | – | (40,287) | – | (40,287) |
Total | $708,148 | $851,249 | $(150,215) | $(39,813) | $– | $1,369,369 |
Global High Income Fund | ||||||
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Forward Currency Contracts | $– | $3,840,593 | $– | $– | $– | $3,840,593 |
Total | $– | $3,840,593 | $– | $– | $– | $3,840,593 |
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�� | Risk Exposure Category | |||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Forward Currency Contracts | $– | $(248,330) | $– | $– | $– | $(248,330) |
Total | $– | $(248,330) | $– | $– | $– | $(248,330) |
Derivative | Average Notional Value |
Emerging Markets Debt Fund | |
Foreign Currency Contracts Purchased | $1,765,876 |
Foreign Currency Contracts Sold | $7,408,539 |
Global Absolute Return Strategies Fund | |
Purchased Options Contracts | $327,791 |
Long Futures Contracts | $16,378,682 |
Short Futures Contracts | $17,475,005 |
Written Options Contracts | $588,319 |
Swap Contracts at Notional Amount | $213,872,869 |
Foreign Cross Currency Contracts | $9,926,193 |
Foreign Currency Contracts Purchased | $43,128,228 |
Foreign Currency Contracts Sold | $66,638,998 |
Global High Income Fund | |
Foreign Currency Contracts Purchased | $2,326,111 |
Foreign Currency Contracts Sold | $22,912,343 |
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 and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as a Fund acquires information regarding such dividends or corporate actions. | |
Interest income and expenses are recorded on an accrual basis. Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the relevant Funds based on net assets of each Fund as of the month end. For each of the Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses to a class is based on the total net asset value of that class’s shares in proportion to the total net assets of the relevant Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class. |
f. | Distributions: |
Distributions from net investment income, if any, are declared and paid quarterly for the Emerging Markets Debt Fund. Distributions from net investment income, if any, are declared daily and paid monthly for the Short Duration High Yield Municipal Fund, the Intermediate Municipal Income Fund and the Ultra Short Municipal Income Fund. Distributions from net investment income, if any, are declared and paid monthly for the Global High Income Fund and annually for the Global Absolute Return Strategies Fund. The Funds will also declare and pay distributions at |
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least annually from net realized gains on investment transactions and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are recorded on the ex-dividend date. | |
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign currencies and loss deferrals. |
g. | Federal Income Taxes: |
Each Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is required. Management of the Funds 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 Funds' U.S. federal and state tax returns for each of the most recent four fiscal years up to the most recent fiscal year ended October 31, 2022 are subject to such review. Management of the Funds 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 Funds' U.S. federal and state tax returns for each of the most recent four fiscal years up to the most recent fiscal year ended October 31, 2022 are subject to such review. |
h. | Foreign Withholding Tax: |
Interest income from non-U.S. sources received by the Funds are generally subject to non-U.S. withholding taxes and are recorded on the Statement of Operations. The Funds file for tax reclaims for the refund of such withholdings taxes according to tax treaties. Tax reclaims that are deemed collectible are booked as tax reclaim receivable on the Statement of Assets and Liabilities. Foreign tax authorities can examine previously filed withholding tax reclaims for various periods of time, depending on the statute of limitations in each foreign jurisdiction. In some cases, amounts that have been refunded by foreign tax authorities and received by the Funds are still subject to such review. | |
In addition, the Funds 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 Funds accrue such taxes when the related income is earned. | |
In addition, when the Funds sell 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 Funds accrue 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. |
i. | Securities Lending |
Through an agreement with Securities Finance Trust Company as the Lending Agent and State Street Bank and Trust Company (the Funds’ custodian), the Funds may lend their portfolio securities to brokers, dealers and other financial institutions that pay a negotiated fee in order to generate additional income. The Funds receive non-cash collateral in the form of U.S. Government Securities, with respect to each loan of U.S. securities, typically equal to at least 102% of the value of the portfolio securities loaned, and, with respect to each loan of non-U.S. securities, typically equal to at least 105% of the value of the portfolio securities loaned, and at all times thereafter require the borrower to mark to market such collateral on a daily basis so that the market value of such collateral does not fall below 100% of the market value of the portfolio securities so loaned. | |
Income generated from securities lending includes the difference between (i) the sum of income received from the investment of collateral received from the borrowers that are counterparties to loans, loan fees received from loans, and fees paid by borrower on loans collateralized with collateral other than cash collateral; and ii) any rebate paid to a borrower, and any other allocable fees and expenses in connection with loans of securities. All income is accrued daily and is apportioned 90% to the Funds and 10% to the Lending Agent. | |
The Funds continue to own the loaned securities and continue to recognize unrealized gains and losses on the securities on loan. However, securities lending involves certain risks, including the event of default or insolvency of the borrower, which could delay or restrict a Fund’s ability to recover the loaned securities or dispose of the collateral for the loan. Securities on loan are noted within the Statement of Investments. Non-cash securities lending collateral held by the Lending Agent on behalf of the Funds cannot be sold or repledged by the Funds and therefore, this amount is not presented on the Funds’ Statements of Investments. |
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At October 31, 2022, the market value of loaned securities and collateral received were as follows: |
Value of Securities Loaned | Value of Cash Collateral | Value of Non-cash Collateral | |
Global High Income Fund | $2,282,069 | $ 2,349,816 | $– |
a. | Investment Adviser |
Under the Investment Advisory Agreement with the Trust, the Adviser manages the Funds in accordance with the policies and procedures established by the Board. | |
For services provided under the terms of the current Investment Advisory Agreement, each Fund pays the Adviser an annual management fee (as a percentage of its average daily net assets) paid monthly according to the following schedule: | |
Fund | Fee Schedule | |
Emerging Markets Debt Fund | Up to $500 million | 0.600% |
On $500 million and more | 0.550% | |
Global Absolute Return Strategies Fund | Up to $500 million | 0.600% |
$500 million up to $1 billion | 0.550% | |
On $1 billion and more | 0.500% | |
Global High Income Fund | Up to $5 billion | 0.650% |
$5 billion up to $7.5 billion | 0.630% | |
$7.5 billion up to $10 billion | 0.600% | |
$10 billion and more | 0.590% | |
Intermediate Municipal Income Fund | Up to $250 million | 0.425% |
$250 million up to $1 billion | 0.375% | |
On $1 billion and more | 0.355% | |
Short Duration High Yield Municipal Fund | Up to $250 million | 0.650% |
On $250 million and more | 0.600% | |
Ultra Short Municipal Income Fund | Up to $2.5 billion | 0.500% |
On $2.5 billion and more | 0.450% |
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October 31, 2022
Fund | Limit |
Emerging Markets Debt Fund | 0.65% |
Global Absolute Return Strategies Fund | 0.65% |
Global High Income Fund | 0.75% |
Intermediate Municipal Income Fund | 0.50% |
Fund | Class A Limit | Class A1 Limit | Class C Limit | Institutional Class Limit |
Short Duration High Yield Municipal Fund | 0.90% | – | 1.65% | 0.65% |
Ultra Short Municipal Income Fund | 0.70% | 0.70% | – | 0.45% |
Fund | Amount Fiscal Year 2020 (Expires 10/31/23) | Amount Fiscal Year 2021 (Expires 10/31/24) | Amount Fiscal Year 2022 (Expires 10/31/25) | Total* |
Emerging Markets Debt Fund | $229,300 | $233,540 | $201,245 | $664,085 |
Global Absolute Return Strategies Fund | 347,710 | 540,814 | 507,424 | 1,395,948 |
Global High Income Fund | 698,958 | 562,810 | 439,426 | 1,701,194 |
Intermediate Municipal Income Fund | 233,940 | 233,143 | 206,321 | 673,404 |
Short Duration High Yield Municipal Fund | 582,868 | 812,551 | 760,410 | 2,155,829 |
Ultra Short Municipal Income Fund | 2,517,221 | 2,920,672 | 2,289,342 | 7,727,235 |
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
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b. | Fund Administration |
Under the terms of the Fund Administration Agreement, abrdn provides various administrative and accounting services, including daily valuation of the Funds' shares, preparation of financial statements, tax returns, regulatory reports, and presentation of quarterly reports to the Board. For services provided pursuant to the Fund Administration Agreement, the Trust pays abrdn an annual fee of 0.08% based on the Trust’s average daily net assets. The fee is then allocated proportionately among all funds within the Trust (including the Funds) in relation to the average daily net assets of each fund. This asset-based fee is subject to an annual minimum fee based on the number of funds served. Pursuant to a sub-administration agreement with abrdn, State Street Bank and Trust Company ("State Street") provides sub-administration services with respect to the Funds. abrdn pays State Street for providing such services. |
c. | Distributor and Shareholder Servicing |
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares. | |
The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate the Distributor, for expenses associated with the distribution-related and/or shareholder services provided by such entities. These fees are paid to the Distributor and are either kept or paid to shareholders’ financial advisors or other intermediaries for distribution and shareholder services. Although actual distribution expenses may be more or less, under the Plan, the Funds pay the Distributor an annual fee of the following amounts, based on the total net assets of each, respective class: | |
Fund | Class A Shares | Class A1 Shares | Class C Shares(a) | Class R Shares(a) |
Emerging Markets Debt Fund | 0.25% | – | 1.00% | 0.50% |
Global Absolute Return Strategies Fund | 0.25% | – | 1.00% | – |
Global High Income Fund | 0.25% | – | – | – |
Intermediate Municipal Income Fund | 0.25% | – | 1.00% | – |
Short Duration High Yield Municipal Fund | 0.25% | – | 1.00% | – |
Ultra Short Municipal Income Fund | 0.25% | 0.25% | – | – |
(a) | 0.25% of which is service fees. |
Fund | Commissions Retained from Front-End Sales Charges of Class A and Class A1 Shares | Commissions Retained from CDSC Fees of Class C (Certain Class A and Class A1) Shares |
Emerging Markets Debt Fund | $– | $– |
Global Absolute Return Strategies Fund | 131 | – |
Global High Income Fund | 21,970 | – |
Intermediate Municipal Income Fund | 36 | 261 |
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October 31, 2022
Fund | Commissions Retained from Front-End Sales Charges of Class A and Class A1 Shares | Commissions Retained from CDSC Fees of Class C (Certain Class A and Class A1) Shares |
Short Duration High Yield Municipal Fund | $– | $8,280 |
Ultra Short Municipal Income Fund | – | – |
Total Retained | $22,137 | $ 8,541 |
d. | Administrative Services Fees/Transfer Agent Out-of-Pocket Expenses |
The Funds may pay and/or reimburse administrative services fees/sub-transfer agent expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds (sometimes referred to as “sub-transfer agency fees”), subject to certain limitations approved by the Board. These fees may be in addition to Rule 12b-1 fees. Sub-transfer agency fees generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services. | |
Class A, Class A1, Class R and Institutional Service Class shares of the Funds pay for such services pursuant to an Administrative Services Plan adopted by the Board. Under the Administrative Services Plan, a Fund may pay a broker-dealer or other intermediary a maximum annual sub-transfer agent and administrative services fee of 0.25% for Class A, Class A1, Class R and Institutional Service Class shares. Under an amendment to the Administrative Services Plan that is in effect until at least February 28, 2023, the administrative service fee is limited to a maximum of 0.15% for contracts with fees that are calculated as a percentage of Fund assets and a maximum of $16 per account for contracts with fees that are calculated on a dollar per account basis; however, many intermediaries do not charge the maximum permitted fee or even a portion thereof. Class C and Institutional Class shares may also pay for the services described above directly and not pursuant to an Administrative Services Plan. | |
The aggregate amount of sub-transfer agent and administrative service fees paid during the fiscal year ended October 31, 2022 was as follows: | |
Fund | Class A | Class A1 | Class C | Class R | Institutional Service | Institutional |
Emerging Markets Debt Fund | $173 | $– | $51 | $4,440 | $80 | $2,325 |
Global Absolute Return Strategies Fund | 23,372 | – | 529 | – | 7,531 | 39,677 |
Global High Income Fund | 88,611 | – | – | – | – | 31,128 |
Intermediate Municipal Income Fund | 737 | – | 92 | – | – | 4,424 |
Short Duration High Yield Municipal Fund | 11,225 | – | 5 | – | – | 168,886 |
Ultra Short Municipal Income Fund | 89,176 | 22 | – | – | – | 487,352 |
e. | Purchase/Sale Transactions Between Affiliates |
The Funds are permitted to buy or sell securities with funds that have a common investment adviser (or investment advisers which are affiliates) under specific procedures which have been approved by the Board. The procedures are designed to satisfy the requirements of Rule 17a-7 of the Investment Company Act of 1940 (“Rule 17a-7”). During the year ended October 31, 2022, the Intermediate Municipal Income Fund engaged in purchases of securities pursuant to Rule 17a-7 for the amount of $1,000,978. During the year ended October 31, 2022, the Short Duration High Yield Municipal Fund engaged in sales of securities pursuant to Rule 17a-7 for the amount of $1,000,978. No other Funds engaged in these trades. |
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Fund | Purchase | Sales |
Emerging Markets Debt Fund | $18,867,645 | $22,721,188 |
Global Absolute Return Strategies Fund | 16,818,303 | 10,752,847 |
Global High Income Fund | 105,432,198 | 114,178,155 |
Intermediate Municipal Income Fund | 11,183,996 | 16,141,677 |
Short Duration High Yield Municipal Fund | 197,037,665 | 406,936,743 |
Ultra Short Municipal Income Fund | 2,387,435,799 | 2,564,973,944 |
a. | Absolute Return Strategy Risk |
The Global Absolute Return Strategies Fund is subject to risks related to its absolute return strategy. Absolute return funds employ certain techniques that are intended to reduce risk and volatility in the portfolio and provide protection against a decline in the fund’s assets. They are not designed to outperform stocks and bonds in strong markets and there is no guarantee of positive returns or that the Fund’s objective will be achieved. |
b. | Asset-Backed Securities Risk |
The Global High Income Fund may buy or sell asset-backed securities. Like traditional fixed income securities, the value of asset-backed securities typically increases when interest rates fall and decreases when interest rates rise. Certain asset-backed securities may also be subject to the risk of prepayment. |
c. | Bank Loan Risk |
The Global High Income Fund may buy or sell bank loans. There are a number of risks associated with an investment in bank loans including credit risk, interest rate risk, illiquid securities risk, and prepayment risk. There is also the possibility that the collateral securing a loan, if any, may be difficult to liquidate or be insufficient to cover the amount owed under the loan. Bank loans have significantly longer settlement periods (e.g., longer than seven days) than more traditional investments resulting in the proceeds from the sale of such loans not being readily available to make additional investments or to meet a Fund’s redemption obligations. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities. These risks could cause a Fund to lose income or principal on a particular investment, which in turn could affect a Fund’s returns. |
d. | Credit Default Swap Risk |
The Global Absolute Return Strategies Fund and Global High Income Fund may buy or sell credit default swaps. Credit default swap contracts, a type of derivative instrument, particularly selling credit default swaps, involve special risks and may result in losses to the Funds. |
e. | 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 each Fund, the Adviser and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or lose operational functionality. |
f. | Derivatives Risk (including Options, Futures and Swaps) |
Certain Funds are subject to Derivatives Risk. Derivatives are speculative and may hurt the Fund’s performance. The potential benefits to be derived from the Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. | |
Speculative Exposure Risk. To the extent that a derivative or practice is not used as a hedge, the Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from writing uncovered call options and from speculative short sales are unlimited. |
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October 31, 2022
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 a hedging instrument will not match those of the investment being hedged. | |
Counterparty Risk. Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations. | |
Other Derivatives Risks. Fixed income derivatives are subject to interest rate risk. In addition, certain derivatives may be subject to illiquid securities risk, mispricing or valuation complexity, market risk and management risk. The Fund may need to sell portfolio securities at inopportune times to satisfy margin or payment obligations under derivatives investments. Changes in regulation relating to the Fund’s use of derivatives and related instruments could potentially limit or impact the Fund’s ability to invest in derivatives, limit the Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Fund’s performance. |
g. | Emerging Markets Risk |
The risks of investing in emerging markets countries are a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below). |
h. | Equity Securities Risk |
The Global Absolute Return Strategies Fund and Global High Income Fund may invest in equity securities. The stock or other security of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions), to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry), or to the market as a whole (such as periods of market volatility or instability, or general and prolonged periods of economic decline). |
i. | Fixed Income Securities Risk |
Fixed income securities are subject to, among other risks, credit risk, extension risk, issuer risk, interest rate risk, market risk and prepayment risk. |
j. | Foreign Currency Exposure Risk |
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 a Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful. |
k. | Foreign Securities Risk |
Foreign countries in which a Fund may invest may have markets that are less liquid, less regulated and more volatile than U.S. markets. The value of a Fund’s investments may decline because of factors such as unfavorable or unsuccessful government actions, reduction of government or central bank support and political or financial instability. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund. | |
Russia/Ukraine Risk. In February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat of wider spread hostilities could have a severe adverse effect on the region and global economies, including significant negative impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related events could have a significant impact on Fund performance and the value of Fund investments. |
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l. | High-Yield Bonds and Other Lower-Rated Securities Risk |
A Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities. |
m. | Illiquid Securities Risk |
Illiquid securities are assets that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the asset. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. | |
The Adviser employs procedures and tests using third-party and internal data inputs that seek to assess and manage the liquidity of a Fund’s portfolio holdings. These procedures and tests take into account a Fund’s investment strategy and liquidity of portfolio investments during both normal and foreseeable stressed conditions, cash-flow projections during both normal and reasonably foreseeable stressed conditions, relevant market, trading and other factors, and monitor whether liquidity should be adjusted based on changed market conditions. These procedures and tests are designed to assist a Fund in determining its ability to meet redemption requests in various market conditions. In light of the dynamic nature of markets, there can be no assurance that these procedures and tests will enable a Fund to ensure that it has sufficient liquidity to meet redemption requests. |
n. | Impact of Large Redemptions and Purchases of Fund Shares |
Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause a Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of a Fund and result in credit line borrowing fees and/or overdraft charges to a Fund until the sales of portfolio securities necessary to cover the redemption request settle. |
o. | Interest Rate Risk |
Each Fund’s fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in each Fund’s net assets. Each Fund may be subject to a greater risk of rising interest rates due to the recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income-securities with a greater time to maturity and/or lower coupon. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates. |
p. | Issuer Risk |
The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. |
q. | LIBOR Risk |
The Funds are subject to the risk that potential changes related to the use of the London Interbank Offered Rate (“LIBOR”) could adversely affect financial instruments that reference LIBOR as a benchmark interest rate. While some instruments may contemplate a scenario when LIBOR is no longer available by providing for an alternative rate setting methodology, not all instruments provide for an alternative rate, and the effectiveness of replacement rates is uncertain. The potential abandonment of LIBOR could affect the value and liquidity of instruments that reference LIBOR, especially those that do not have fallback provisions. |
r. | Management Risk |
Each Fund is subject to the risk that the Adviser or Subadviser (as applicable) may make poor security selections. The Adviser, Subadviser and their portfolio managers apply their own investment techniques and risk analyses in making investment decisions for a Fund and there can be no guarantee that these decisions will achieve the desired results for a Fund. In addition, the Adviser or Subadviser may select securities that underperform the relevant market or other funds with similar investment objectives and strategies. |
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October 31, 2022
s. | Market Risk |
Deteriorating market conditions might cause a general weakness in the market that reduces the prices, or yield, of securities in that market. Developments in a particular class of bonds or the stock market could also adversely affect a Fund by reducing the relative attractiveness of bonds or stocks as an investment. Also, to the extent that a Fund emphasizes bonds or stocks from any given industry, it could be hurt if that industry does not do well. Additionally, a Fund could lose value if the individual stocks in which it maintains long positions and/or the overall stock markets on which the stocks trade decline in price. In addition, a Fund that engages in short sales could lose value if the individual stocks which they sell short increase in price. Stocks and stock markets may experience short-term volatility (price fluctuation) as well as extended periods of price decline or increase. Individual stocks are affected by many factors, including: |
• | corporate earnings; |
• | production; |
• | management; |
• | sales; and |
• | market trends, including investor demand for a particular type of stock, such as growth or value stocks, small or large stocks, or stocks within a particular industry. |
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t. | Municipal Securities Risk |
The Intermediate Municipal Income Fund, Short Duration High Yield Municipal Fund and Ultra Short Municipal Income Fund (the “Municipal Funds”) are subject to municipal securities risk. Municipal bonds can be significantly affected by political and economic changes, including inflation, as well as uncertainties in the municipal market related to taxation, legislative changes, or the rights of municipal security holders. Municipal bonds have varying levels of sensitivity to changes in interest rates. Interest rate risk is generally lower for shorter-term municipal bonds and higher for long term municipal bonds. | |
Municipal Bond Tax Risk. A municipal bond that is issued as tax-exempt may later be declared to be taxable. In addition, if the federal income tax rate is reduced, the value of the tax exemption may be less valuable, causing the value of a municipal bond to decline. | |
Municipal Market Volatility and Illiquidity Risk. The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be reduced unpredictably in response to overall economic conditions or credit tightening. During times of reduced market liquidity, a Fund may not be able to readily sell bonds without the sale significantly changing the market value of the bond. If the Fund needed to sell large blocks of bonds to meet shareholder redemption requests or to raise cash, those sales could further reduce the bonds’ prices. | |
Municipal Sector Risk. From time to time a Fund may invest a substantial amount of its assets in municipal securities whose interest is paid solely from revenues of similar projects. If the Fund concentrates its investments in this manner, it assumes the economic risks relating to such projects and this may have a significant impact on the Fund’s investment performance. | |
New York State-Specific Risk. To the extent the Short Duration High Yield Municipal Fund invests a substantial amount of its assets in New York municipal securities, the Fund may be affected by economic, regulatory or political developments affecting the ability of New York issuers to pay interest or repay principal. |
u. | Non-Diversified Fund Risk |
The Emerging Market Debt Fund’s performance may be more volatile than a diversified fund because it may invest a greater percentage of its total assets in the securities of a single issuer. |
v. | Non-Hedging Foreign Currency Trading Risk |
Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from the Adviser’s expectations may produce significant losses to certain Funds. |
w. | Portfolio Turnover Risk |
Certain Funds may engage in active and frequent trading of portfolio securities to achieve its investment objective. High portfolio turnover may result in greater transaction costs which may reduce Fund performance. The sale of Fund portfolio securities may also result in greater realization and/or distribution to shareholders of gains or losses as compared to a fund with less active trading, which may include short-term gains taxable at ordinary income tax rates. |
x. | Private Placements and Other Restricted Securities Risk |
The Emerging Markets Debt Fund, Global High Income Fund and Short Duration High Yield Municipal Fund are subject to Private Placements Risk. Investments in private placements and other restricted securities, including Regulation S Securities and Rule 144A Securities, could have the effect of increasing the Fund’s level of illiquidity. Private placements and restricted securities may be less liquid than other investments because such securities may not always be readily sold in broad public markets and the Fund might be unable to dispose of such securities promptly or at prices reflecting their true value. |
2022 Annual Report | 103 |
October 31, 2022
y. | Puerto Rico and U.S. Territories Risk |
The Short Duration High Yield Municipal Fund is subject to Puerto Rico and U.S. territories risk to the extent that it invests in municipal obligations of such territories. Certain municipal issuers in Puerto Rico have experienced financial difficulties over recent years, leading certain issuers, including the Commonwealth, to default on debt obligations. These financial difficulties have been exacerbated by the impact of geological and severe weather events, as well as public health emergencies. Puerto Rico’s ongoing financial difficulties could potentially lead to worsening liquidity for its bonds and wider spreads, and consequently may affect the Fund’s performance to the extent it invests in Puerto Rican municipal securities. As with Puerto Rican municipal securities, events in any of the other territories where the Fund is invested may affect the Fund’s investments and its performance. |
z. | Sector Risk |
To the extent that a 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. | |
Financials Sector Risk. To the extent that the financials sector represents a significant portion of a Fund’s portfolio, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets as well as cyber-attacks. |
aa. | Sovereign Debt Risk |
The Emerging Markets Debt Fund, Global Absolute Return Strategies Fund and Global High Income Fund are subject to Sovereign Debt Risk. Periods of economic and political uncertainty may result in the illiquidity and increased price volatility of a foreign government’s debt securities held by the Fund and impact an issuer’s ability and willingness to pay interest or repay principal when due. The Fund may have limited recourse to compel payment in the event of a default. A foreign government’s default on its debt securities may cause the value of securities held by the Fund to decline significantly. |
bb. | Tender Option Bonds Risk |
The Municipal Funds are subject to Tender Option Bonds Risk. Tender option bonds are synthetic floating-rate or variable-rate securities issued when long-term bonds are purchased in the primary or secondary market and then deposited into a trust. Tender option bonds may be considered derivatives, and may expose the Fund to the same risks as investments in derivatives, as well as risks associated with leverage, especially the risk of increased volatility. |
cc. | Tobacco Related Bonds Risk |
The Short Duration High Yield Municipal Fund is subject to Tobacco Related Bonds Risk. In 1998, the largest U.S. tobacco manufacturers reached an out of court agreement, the MSA, to settle claims against them by 46 states and six other U.S. jurisdictions. The tobacco manufacturers agreed to make annual payments to the government entities in exchange for the release of all litigation claims. A number of the states have sold bonds that are backed by those future payments. The Funds may invest in two types of those bonds: (i) bonds that make payments only from a state’s interest in the MSA and (ii) bonds that make payments from both the MSA revenue and from an “appropriation pledge” by the state. An “appropriation pledge” requires the state to pass a specific periodic appropriation to make the payments and is generally not an unconditional guarantee of payment by a state. The settlement payments are based on factors, including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. Payments could be reduced if consumption decreases, if market share is lost to non-MSA manufacturers, or if there is a negative outcome in litigation regarding the MSA. |
dd. | U.S. Government Securities Risk |
Securities issued by U.S. Government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. The U.S. Government does not guarantee the net asset value of a Fund’s shares. |
ee. | Valuation Risk |
The price that a 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 received upon the sale of an investment may be less than the value ascribed |
104 | 2022 Annual Report |
October 31, 2022
by a Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A 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. |
ff. | Variable and Floating Rate Securities Risk |
Certain Funds are subject to Variable and Floating Rate Securities Risk. For floating and variable rate obligations, there may be a lag between an actual change in the underlying interest rate benchmark and the reset time for an interest payment of such an obligation, which could harm or benefit the Fund, depending on the interest rate environment or other circumstances. Variable rate demand obligations (“VRDOs”) are floating rate securities that combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money. |
gg. | Yield Risk |
The Ultra Short Municipal Income Fund is subject to Yield Risk. The amount of income received by the Fund will go up or down depending on day-to-day variations in short-term interest rates, and when interest rates are very low the Fund’s expenses could absorb all or a significant portion of the Fund’s income. If interest rates increase, the Fund’s yield may not increase proportionately. For example, the Adviser may discontinue any temporary voluntary fee limitation or recoup amounts previously waived and/or reimbursed. | |
Please read the Funds' prospectus for more detailed information regarding these and other risks. |
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |
Emerging Markets Debt Fund | $34,079,412 | $35,457 | $(10,502,567) | $(10,467,110) |
Global Absolute Return Strategies Fund | 39,616,832 | 2,980,348 | (4,642,600) | (1,662,252) |
Global High Income Fund | 127,879,938 | 231,016 | (17,040,144) | (16,809,128) |
Intermediate Municipal Income Fund | 49,385,994 | 381,150 | (3,673,624) | (3,292,474) |
Short Duration High Yield Municipal Fund | 213,625,484 | 36,028 | (20,978,218) | (20,942,190) |
Ultra Short Municipal Income Fund | 721,516,243 | 70,187 | (1,595,432) | (1,525,245) |
2022 Annual Report | 105 |
October 31, 2022
Distributions paid from | |||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid |
Emerging Markets Debt Fund | $2,708,278 | $– | $2,708,278 | $– | $2,708,278 |
Global Absolute Return Strategies Fund | 2,028,333 | 690,096 | 2,718,429 | – | 2,718,429 |
Global High Income Fund | 6,228,214 | – | 6,228,214 | – | 6,228,214 |
Intermediate Municipal Income Fund | 6,021 | – | 6,021 | 1,511,748 | 1,517,769 |
Short Duration High Yield Municipal Fund | 39,887 | – | 39,887 | 8,501,509 | 8,541,396 |
Ultra Short Municipal Income Fund | 2,830 | – | 2,830 | 5,433,373 | 5,436,203 |
Distributions paid from | |||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid |
Emerging Markets Debt Fund | $1,902,067 | $– | $1,902,067 | $– | $1,902,067 |
Global Absolute Return Strategies Fund | 67,951 | – | 67,951 | – | 67,951 |
Global High Income Fund | 7,232,532 | – | 7,232,532 | – | 7,232,532 |
Intermediate Municipal Income Fund | 5,646 | 111,156 | 116,802 | 1,657,068 | 1,773,870 |
Short Duration High Yield Municipal Fund | 45,798 | – | 45,798 | 8,245,012 | 8,290,810 |
Ultra Short Municipal Income Fund | 3,774 | – | 3,774 | 989,127 | 992,901 |
Fund | Undistributed Tax Exempt Income | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Distributions Payable | Late Year Ordinary and Post-October Capital Loss Deferrals | Other Temporary Differences | Unrealized Appreciation/ (Depreciation)* | Accumulated Capital and Other Losses** | Total Accumulated Earnings/ (Deficit) |
Emerging Markets Debt Fund | $– | $1,501,064 | $– | $– | $– | $– | $(579,427) | $(10,443,892) | $(8,190,134) | $(17,712,389) |
Global Absolute Return Strategies Fund | $– | $– | $– | $– | $– | $– | $– | $(1,125,254) | $(5,143,117) | (6,268,371) |
Global High Income Fund | – | 2,816,485 | – | – | – | – | (89,177) | (17,188,771) | (241,793,016) | (256,254,479) |
Intermediate Municipal Income Fund | – | – | – | – | – | – | (4,063) | (3,292,472) | (578,620) | (3,875,155) |
Short Duration High Yield Municipal Fund | 248,290 | – | – | – | – | – | (140,671) | (20,942,190) | (23,084,133) | (43,918,704) |
Ultra Short Municipal Income Fund | 57,234 | – | – | – | – | – | (42,876) | (1,525,243) | (1,751,983) | (3,262,868) |
106 | 2022 Annual Report |
October 31, 2022
* | The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable to tax deferral of losses on wash sales. |
** | As of October 31, 2022, for Federal income tax purposes, these Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the Treasury regulations, with no expiration. |
Fund | Amounts | Expires |
Emerging Markets Debt Fund | $3,066,215 | Unlimited (Short-Term) |
Emerging Markets Debt Fund | 5,123,919 | Unlimited (Long-Term) |
Global Absolute Return Strategies Fund | 5,143,117 | Unlimited (Short-Term) |
Global High Income Fund | 56,034,813 | Unlimited (Short-Term) |
Global High Income Fund | 185,758,203 | Unlimited (Long-Term) |
Intermediate Municipal Income Fund | 272,610 | Unlimited (Short-Term) |
Intermediate Municipal Income Fund | 306,010 | Unlimited (Long-Term) |
Short Duration High Yield Municipal Fund | 12,689,468 | Unlimited (Short-Term) |
Short Duration High Yield Municipal Fund | 10,394,665 | Unlimited (Long-Term) |
Ultra Short Municipal Income Fund | 1,751,983 | Unlimited (Short-Term) |
Fund | Paid-in Capital | Distributable Earnings/ (Accumulated Loss) |
Global Absolute Return Strategies Fund | $(1,203,747) | $1,203,747 |
Intermediate Municipal Income Fund | (1,055) | 1,055 |
Fund | Record Ownership % | Number of Account Owners |
Emerging Markets Debt Fund | 93.1% | 2 |
Global Absolute Return Strategies Fund | 45.0 | 5 |
Global High Income Fund | 46.0 | 5 |
Intermediate Municipal Income Fund | 54.4 | 1 |
Short Duration High Yield Municipal Fund | 43.6 | 4 |
Ultra Short Municipal Income Fund | 75.8 | 5 |
2022 Annual Report | 107 |
October 31, 2022
Fund | Average Outstanding Daily Balance | Average Weighted Interest Rate | Days Utilized |
Emerging Markets Debt Fund | 712,174 | 3.19% | 26 |
Global High Income Fund | 1,931,272 | 2.00% | 9 |
Intermediate Municipal Income Fund | 552,789 | 2.09% | 10 |
Short Duration High Yield Municipal Fund | 7,600,897 | 3.04% | 139 |
Ultra Short Municipal Income Fund | 1,828,272 | 4.38% | 30 |
108 | 2022 Annual Report |
abrdn Funds:
December 29, 2022
2022 Annual Report | 109 |
Fund | Qualified Dividend Income |
Global Absolute Return Strategies Fund | 2.62% |
Fund | Amount |
Global Absolute Return Strategies Fund | $690,096 |
110 | 2022 Annual Report |
Beginning Account Value, May 1, 2022 | Actual Ending Account Value, October 31, 2022 | Hypothetical Ending Account Value | Actual Expenses Paid During Period1 | Hypothetical Expenses Paid During Period12 | Annualized Expense Ratio** | ||
Emerging Markets Debt Fund | Class A | $ 1,000.00 | $ 874.10 | $ 1,020.22 | $ 4.68 | $ 5.04 | 0.99% |
Class C | $ 1,000.00 | $ 872.00 | $ 1,016.84 | $ 7.83 | $ 8.44 | 1.66% | |
Class R | $ 1,000.00 | $ 874.00 | $ 1,018.65 | $ 6.14 | $ 6.61 | 1.30% | |
Institutional Service Class | $ 1,000.00 | $ 876.40 | $ 1,021.27 | $ 3.69 | $ 3.97 | 0.78% | |
Institutional Class | $ 1,000.00 | $ 877.30 | $ 1,021.88 | $ 3.12 | $ 3.36 | 0.66% | |
Global Absolute Return Strategies Fund | Class A | $ 1,000.00 | $ 944.20 | $ 1,020.06 | $ 5.00 | $ 5.19 | 1.02% |
Class C | $ 1,000.00 | $ 941.60 | $ 1,016.84 | $ 8.12 | $ 8.44 | 1.66% | |
Institutional Service Class | $ 1,000.00 | $ 945.80 | $ 1,021.32 | $ 3.78 | $ 3.92 | 0.77% | |
Institutional Class | $ 1,000.00 | $ 945.20 | $ 1,021.93 | $ 3.19 | $ 3.31 | 0.65% | |
Global High Income Fund | Class A | $ 1,000.00 | $ 930.50 | $ 1,020.16 | $ 4.87 | $ 5.09 | 1.00% |
Institutional Class | $ 1,000.00 | $ 932.80 | $ 1,021.37 | $ 3.70 | $ 3.87 | 0.76% | |
Intermediate Municipal Income Fund | Class A | $ 1,000.00 | $ 955.70 | $ 1,021.32 | $ 3.80 | $ 3.92 | 0.77% |
Class C | $ 1,000.00 | $ 953.20 | $ 1,017.64 | $ 7.38 | $ 7.63 | 1.50% | |
Institutional Service Class | $ 1,000.00 | $ 957.10 | $ 1,022.84 | $ 2.32 | $ 2.40 | 0.47% | |
Institutional Class | $ 1,000.00 | $ 958.10 | $ 1,022.69 | $ 2.47 | $ 2.55 | 0.50% | |
Short Duration High Yield Municipal Fund | Class A | $ 1,000.00 | $ 960.20 | $ 1,020.27 | $ 4.84 | $ 4.99 | 0.98% |
Class C | $ 1,000.00 | $ 957.60 | $ 1,016.48 | $ 8.54 | $ 8.79 | 1.73% | |
Institutional Class | $ 1,000.00 | $ 961.40 | $ 1,021.58 | $ 3.56 | $ 3.67 | 0.72% |
2022 Annual Report | 111 |
Beginning Account Value, May 1, 2022 | Actual Ending Account Value, October 31, 2022 | Hypothetical Ending Account Value | Actual Expenses Paid During Period1 | Hypothetical Expenses Paid During Period12 | Annualized Expense Ratio** | ||
Ultra Short Municipal Income Fund | Class A | $ 1,000.00 | $ 1,005.80 | $ 1,021.78 | $ 3.44 | $ 3.47 | 0.68% |
Class A1 | $ 1,000.00 | $ 1,004.80 | $ 1,021.78 | $ 3.44 | $ 3.47 | 0.68% | |
Institutional Class | $ 1,000.00 | $ 1,007.00 | $ 1,023.04 | $ 2.18 | $ 2.19 | 0.43% |
** | The expense ratio presented represents a six-month, annualized ratio. |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). |
2 | Represents the hypothetical 5% return before expenses. |
112 | 2022 Annual Report |
2022 Annual Report | 113 |
• | whether the Funds have operated in accordance with their investment objectives as well as the Funds’ record of compliance with their |
114 | 2022 Annual Report |
investment restrictions, and the compliance programs of the Trust and AI. The Trustees also considered the compliance-related resources AI and its affiliates were providing to the Funds. | |
• | the nature, quality, cost and extent of administrative services performed by AI under the Advisory Agreement and under a separate agreement covering administrative services. |
• | the effect of any market and economic volatility on the performance, asset levels and expense ratios of the Funds. |
• | so-called “fallout benefits” to AI, such as the benefits of research made available to AI by reason of brokerage commissions generated by the Funds’ securities transactions or reputational and other indirect benefits. The Trustees considered any possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest. |
2022 Annual Report | 115 |
Name, Address, and Year of Birth | Position(s) Held, Length of Time Served and Term of Office* | Principal Occupation During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee** | Other Directorships Held by Trustee During Past 5 Years*** |
Interested Trustees | ||||
Stephen Bird† c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1967 | Trustee since 2021 | Mr. Bird joined the Board of abrdn 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. | 28 | None. |
Independent Trustees | ||||
Radhika Ajmera**** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1964 | Trustee since 2020 | Ms. Ajmera was appointed Chair of abrdn Japan Equity Fund Inc in 2017, having served as a director since 2014. She has been an independent nonexecutive director of abrdn Asia-Pacific Income Fund VCC since 2015. She is also an independent non-executive director of abrdn Funds since 2020 and abrdn Global Income Fund Inc, abrdn Asia-Pacific Income Fund Inc and abrdn Australia Equity Fund Inc since 2021. She has over 20 years’ experience in fund management, predominantly in emerging markets. She has also held a number of UK closed end fund non-executive directorships. Ms. Ajmera is a graduate of the London School of Economics. | 23 | None. |
P. Gerald Malone c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1950 | Trustee since 2007 Chairman of the Board | 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) since 2018. He is also Chairman of many of the open and closed end funds in the Fund Complex. He previously served as a non-executive director of U.S. healthcare company Bionik Laboratories Corp. (2018 - July 2022), as Independent Chairman of UK companies Crescent OTC Ltd (pharmaceutical services) until February 2018; and fluidOil Ltd. (oil services) until June 2018; U.S. company Rejuvenan llc (wellbeing services) until September 2017 and as chairman of UK company Ultrasis plc (healthcare software services company) until October 2014. 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. | 28 | None. |
Rahn K. Porter c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1954 | Trustee since 2016 | Mr. Porter is the Principal at RPSS Enterprises (consulting) since 2019. He was the Chief Financial and Administrative Officer of The Colorado Health Foundation from 2013 to 2019. | 19 | Director of CenturyLink Investment Management Company since 2006, Director of BlackRidge Financial Inc. from 2004 to 2019. |
116 | 2022 Annual Report |
Name, Address, and Year of Birth | Position(s) Held, Length of Time Served and Term of Office* | Principal Occupation During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee** | Other Directorships Held by Trustee During Past 5 Years*** |
Steven N. Rappaport c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1948 | Trustee since 2016 | Mr. Rappaport has been a Partner of Lehigh Court, LLC (private investment firm) and RZ Capital LLC (private investment firm) since 2004. | 20 | Director of iCAD, Inc. (a surgical and Medical instruments and apparatus company) from 2006 to 2018; Director of Credit Suisse Funds (9) since 1999; Director of Credit Suisse Asset Management Income Fund, Inc. since 2005; and Director of Credit Suisse NEXT Fund since 2013; and Director of Credit Suisse Park View Fund until 2016. |
Warren C. Smith c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1955 | Trustee since 2007 | Mr. Smith has been a founding partner of MRB Partners Inc. (independent investment research and consultancy firm) since 2010. He has been a Director of Aberdeen Asia-Pacific Income Investment Company Limited (Canadian investment fund) since 1993 | 19 | None. |
* | Each Trustee holds office for an indefinite term until his successor is elected and qualified. |
** | As of October 31, 2022, the Fund Complex consists of: abrdn Income Credit Strategies Fund, abrdn Asia-Pacific Income Fund, Inc., abrdn Global Income Fund, Inc., abrdn Australia Equity Fund, Inc., abrdn Emerging Markets Equity Income Fund, Inc., abrdn Japan Equity Fund, Inc., The India Fund, Inc., abrdn Global Dynamic Dividend Fund, abrdn Total Dynamic Dividend Fund, abrdn Global Premier Properties Fund, abrdn Global Infrastructure Income Fund, abrdn Funds (which consists of 19 portfolios) and abrdn ETFs (which consists of 3 portfolios). For the purposes of listing the number of funds in the Fund Complex overseen by each Board member, each portfolio of abrdn Funds and abrdn ETFs is counted individually. |
*** | 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 “Exchange Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
**** | Each Trustee may be contacted by writing to the Trustee c/o abrdn Inc., 1900 Market Street, Suite 200, Philadelphia, Pennsylvania 19103, Attn: Alan Goodson. |
† | Mr. Bird is considered to be an “interested person” of the Fund as defined in the 1940 Act because of his affiliation with the Investment Manager. |
2022 Annual Report | 117 |
Name, Address and Year of Birth | Position(s) Held* with the Fund | Term of Office and Length of Time Served | Principal Occupation During Past 5 Years |
Joseph Andolina** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Vice President and Chief Compliance Officer | Since 2017 | Currently, Chief Risk Officer – Americas for abrdn Inc. and serves as the Chief Compliance Officer for abrdn Inc. Prior to joining the Risk and Compliance Department, he was a member of abrdn Inc.'s Legal Department, where he served as US Counsel since 2012. |
Chris Demetriou** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Since 2020 | Currently, Chief Executive Officer – UK, EMEA and Americas. Mr. Demetriou joined abrdn Inc. in 2013, as a result of the acquisition of SVG, a FTSE 250 private equity investor based in London. |
Alan Goodson** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | President and Chief Executive Officer | Since 2022 | Currently, Executive Director, Product & Client Solutions – Americas for abrdn Inc., 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 abrdn Inc. and joined abrdn Inc. in 2000. |
Heather Hasson** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1982 | Vice President | Since 2022 | Currently, Senior Product Solutions and Implementation Manager for abrdn Inc. Ms. Hasson joined the company in November 2006. |
Robert Hepp** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1986 | Vice President | Since 2022 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Hepp joined abrdn Inc. as a Senior Paralegal in 2016. |
Megan Kennedy** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Secretary and Vice President | Since 2009 | Currently, Director, Senior Product Governance for abrdn Inc. Ms. Kennedy joined abrdn Inc. in 2005. |
Andrew Kim** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Since 2017 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Kim joined abrdn Inc. as a Product Manager in 2013. |
Brian Kordeck** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Vice President | Since 2022 | Currently, Senior Product Manager – US for abrdn Inc. Mr. Kordeck joined abrdn Inc. as a Senior Fund Administrator in 2013. |
Michael Marsico** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1980 | Vice President | Since 2022 | Currently, Senior Product Manager – US for abrdn Inc. Mr. Marsico joined abrdn Inc. as a Fund Administrator in 2014. |
118 | 2022 Annual Report |
Name, Address and Year of Birth | Position(s) Held* with the Fund | Term of Office and Length of Time Served | Principal Occupation During Past 5 Years |
Andrea Melia** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1969 | Treasurer, Chief Financial Officer, and Principal Accounting Office | Since 2009 | Currently, Vice President and Senior Director, Product Management for abrdn Inc. Ms. Melia joined abrdn Inc. in September 2009. |
Ben Moser** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1979 | Vice President | Since 2018 | Currently, Head of Commercial Operations, Americas for abrdn Inc. Mr. Moser joined abrdn Inc. in July 2008. |
Lucia Sitar** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1971 | Vice President | Since 2008 | Currently, Vice President and Head of Product Management and Governance for abrdn Inc. since 2020. Previously, Ms. Sitar was Managing U.S. Counsel for abrdn Inc. She joined abrdn Inc. as U.S. Counsel in July 2007. |
* | Each officer holds office for an indefinite term at the pleasure of the Board of Trustees and until his or her successor is elected and qualified. |
** | Each officer may hold officer position(s) in one or more other funds which are part of the Fund Complex. |
2022 Annual Report | 119 |
1900 Market Street, Suite 200
Philadelphia, PA 19103
1900 Market Street, Suite 200
Philadelphia, PA 19103
430 W. 7th Street, Ste. 219534
Kansas City, MO 64105-1407
1900 Market Street, Suite 200
Philadelphia, PA 19103
1 Lincoln Street
Boston, MA 02111
1601 Market Street
Philadelphia, PA 19103
1900 K Street N.W.
Washington, DC 20006
Item 2. Code of Ethics.
(a) As of October 31, 2022, the Registrant had adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party (the “Code of Ethics”).
(c) There have been no amendments during the period covered by this report to a provision of the Code of Ethics.
(d) During the period covered by the report, the Registrant did not grant any waivers to the provisions of the Code of Ethics.
(f) The Code of Ethics is included with this Form N-CSR as Exhibit 13(a)(1).
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has determined that there is at least one member who qualifies as an “audit committee financial expert” serving on its Audit Committee. Mr. Rahn K. Porter is the “audit committee financial expert” and is considered to be an “Independent Trustee” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Fiscal Year Ended | (a) Audit Fees | (b) Audit-Related Fees | (c)1 Tax Fees | (d) All Other Fees | ||||||||||||
October 31, 2022 | $ | 690,310 | $ | 0 | $ | 0 | $ | 7,929 | ||||||||
October 31, 2021 | $ | 580,015 | $ | 0 | $ | 101,130 | $ | 13,745 |
1 The Tax Fees are for the completion of the Registrant’s federal and state tax returns. |
(e)(1) Pre-Approval Policies and Procedures. Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Registrant’s (hereinafter, the “Trust”) Audit Committee Charter authorizes the Audit Committee (“Committee”) to annually select, retain or terminate the Trust’s independent auditor and, in connection therewith, to evaluate the terms of the engagement and the qualifications and independence of the independent auditor, including whether the independent auditor provides any consulting, auditing or tax services to the investment adviser (hereinafter, the “Adviser”) or a sub-adviser, and to receive the independent auditor’s specific representations as to their independence, delineating all relationships between the independent auditor and the Trust, consistent with PCAOB 3526 or any other applicable auditing standard. PCAOB Rule 3526 requires that, at least annually, the auditor: (1) disclose to the Committee in writing all relationships between the auditor and its related entities and the Trust and its related entities that in the auditor’s professional judgment may reasonably be thought to bear on independence; (2) confirm in its letter that, in its professional judgment, it is independent of the Trust within the meaning of the Securities Acts administered by the SEC; and (3) discuss the auditor’s independence with the Committee. The Committee is responsible for actively engaging in a dialogue with the independent auditor with respect to any disclosed relationships or services that may impact the objectivity and independence of the independent auditor and for taking, or recommending that the full Board take, appropriate action to oversee the independence of the independent auditor. The Committee is also authorized to review in advance, and consider approval of, any and all proposals by management or the Adviser that the Trust, Adviser or their affiliated persons, employ the independent auditor to render “permissible non-audit services” to the Trust and to consider whether such services are consistent with the independent auditor’s independence. The Committee may delegate to one or more of its members (“Delegates”) authority to pre-approve permissible non-audit services to be provided to the Trust. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. The Committee shall communicate any pre-approval made by it or a Delegate to the Adviser, who will ensure that the appropriate disclosure is made in the Trust’s periodic reports required by Section 30 of the Investment Company Act of 1940, as amended, and other documents as required under the federal securities laws.
(e)(2) None of the services described in each of paragraphs (b) through (d) of this Item involved a waiver of the pre-approval requirement by the Audit Committee pursuant to Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the Registrant’s accountant for services to the Registrant and to the Registrant’s investment adviser and all entities controlling, controlled by, or under common control with the Adviser that provide services to the Registrant for the Registrant’s fiscal years ended October 31, 2022 and October 31, 2021 and were $1,108,929 and $1,547,556, respectively.
(h) The Registrant’s Audit Committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) or Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence and has concluded that it is.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Included as part of the Reports to Shareholders filed under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended October 31, 2022, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d15(b)).
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. However, subsequent to the Registrant’s last fiscal year, a control enhancement has been implemented so that, for abrdn Global Equity Impact Fund and abrdn International Sustainable Leaders Fund, the liability to the Internal Revenue Service on behalf of shareholders related to Article 63 EU Tax Reclaims is measured consistent with the terms of the agreement governing such liability.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(3) Not applicable.
(a)(4) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
abrdn Funds
By: | /s/ Alan Goodson | |
Alan Goodson | ||
Principal Executive Officer | ||
abrdn Funds |
Date: January 9, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Alan Goodson | |
Alan Goodson | ||
Principal Executive Officer | ||
abrdn Funds |
Date: January 9, 2023 | ||
By: | /s/ Andrea Melia | |
Andrea Melia | ||
Principal Financial Officer | ||
abrdn Funds |
Date: January 9, 2023