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: | 811-22485 | |
Exact name of registrant as specified in charter: | abrdn Income Credit Strategies Fund | |
Address of principal executive offices: | 1900 Market Street, Suite 200 | |
Philadelphia, PA 19103 | ||
Name and address of agent for service: | Andrea Melia | |
abrdn Inc. | ||
1900 Market Street Suite 200 | ||
Philadelphia, PA 19103 | ||
Registrant’s telephone number, including area code: | 1-800-522-5465 | |
Date of fiscal year end: | October 31 | |
Date of reporting period: | October 31, 2022 |
Item 1. Reports to Stockholders.
NAV2,3 | -25.87% |
Market Price2 | -34.92% |
ICE BofAML Global High Yield Constrained (Hedged USD)4 | -13.84% |
NAV | Closing Market Price | Premium(+)/ Discount(-) | |
10/31/2022 | $ 6.72 | $ 6.37 | -5.21% |
10/31/2021 | $10.45 | $11.30 | 8.10% |
1 | Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Trustee and legal fees) and assumes the reinvestment of all distributions. |
2 | Assuming the reinvestment of dividends and distributions. |
3 | The Fund’s total return is based on the reported net asset value (“NAV”) for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments. |
4 | The ICE BofAML Global High Yield Constrained (Hedged USD) 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. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
abrdn Income Credit Strategies Fund | 1 |
• | Visit: https://www.abrdn.com/en-us/cefinvestorcenter |
• | Email: Investor.Relations@abrdn.com; or |
• | Call: 1-800-522-5465 (toll free in the U.S.). |
2 | abrdn Income Credit Strategies Fund |
Christian Pittard
President
abrdn Income Credit Strategies Fund | 3 |
1 | Consumer Price Index – a measure of inflation. An index of the cost of all goods and services to a typical consumer. |
2 | 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. |
3 | Leverage – usually refers to a fund being exposed by more than 100% of its net asset value to assets or markets; typically resulting from the use of debt or derivatives. |
4 | The Fund’s net operating expense ratio, excluding fee waivers based on the fiscal year ended October 31, 2022 was 3.95%. The net operating expense ratio, net of fee waivers based on the fiscal year ended October 31, 2022 was 3.70%. The net operating expenses, net of fee waivers and excluding interest expense based on the fiscal year ended October 31, 2022 was 2.48%. |
5 | Currency hedging – The use of derivative transactions to protect the value of an investment against fluctuations in exchange rates. |
6 | 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. |
7 | 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. |
8 | Coupon – The interest rate stated on a bond when it’s issued. Typically coupons are paid semi-annually. |
4 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 5 |
1 Year | 3 Years | 5 Years | 10 Years | |
Net Asset Value (NAV) | -25.87% | -7.09% | -3.93% | 1.30% |
Market Price | -34.92% | -5.74% | -4.11% | 0.90% |
ICE BofAML Global High Yield Constrained (Hedged USD) | -13.84% | -1.22% | 1.13% | 3.93% |
6 | abrdn Income Credit Strategies Fund |
Date | AAA/Aaa % | A % | BBB/Baa % | BB/Ba % | B % | CCC/CC/C % | NR % |
October 31, 2022 | 1.2 | 1.6 | 0.0 | 13.4 | 45.6 | 38.2 | 0.0 |
April 30, 2022 | 0.0 | 0.0 | 0.0 | 8.0 | 50.0 | 36.0 | 6.0 |
October 31, 2021 | 3.0 | 0.0 | 1.0 | 9.0 | 41.0 | 43.0 | 3.0 |
(1) | For financial reporting purposes, credit quality ratings shown above reflect the lowest rating assigned by either S&P, Moody’s or Fitch if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by these rating agencies. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. The Adviser evaluates the credit quality of unrated investments based upon, but not limited to, credit ratings for similar investments. |
Date | Europe % | United States % | United Kingdom % | Others % |
October 31, 2022 | 40.0 | 31.7 | 19.2 | 9.1 |
April 30, 2022 | 28.0 | 33.0 | 18.0 | 21.0 |
October 31, 2021 | 32.0 | 32.0 | 25.0 | 11.0 |
Date | 0 to 5 Years % | 5 to 10 Years % | 10 Years & Over % |
October 31, 2022 | 65.7 | 32.7 | 1.6 |
April 30, 2022 | 70.0 | 27.0 | 3.0 |
October 31, 2021 | 81.0 | 17.0 | 2.0 |
* | Modified duration is a measure of the sensitivity of the price of a bond to the fluctuations in interest rates. |
abrdn Income Credit Strategies Fund | 7 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS—164.1% | |||
ARGENTINA—1.6% | |||
Telecom Argentina SA, 8.00%, 07/18/2026(a)(b) | $ | 3,120,000 | $ 2,693,429 |
BRAZIL—1.1% | |||
InterCement Financial Operations BV, 5.75%, 07/17/2024(a)(b)(c) | 2,736,000 | 1,898,511 | |
CANADA—4.4% | |||
Enerflex Ltd., 9.00%, 10/15/2027 | 1,777,000 | 1,728,666 | |
Husky III Holding Ltd., 13.00%, 02/15/2025(a)(b)(d) | 4,495,000 | 4,107,441 | |
Titan Acquisition Ltd. / Titan Co-Borrower LLC, 7.75%, 04/15/2026(a)(b) | 1,875,000 | 1,532,812 | |
Total Canada | 7,368,919 | ||
CHINA—0.4% | |||
China Evergrande Group, 9.50%, 04/11/2022(a)(c)(e) | 3,304,000 | 115,590 | |
Kaisa Group Holdings Ltd., 9.38%, 06/30/2024(a)(b)(e) | 7,510,000 | 506,925 | |
Total China | 622,515 | ||
DENMARK—2.3% | |||
DKT Finance ApS, 9.38%, 06/17/2023(a)(b) | 4,000,000 | 3,840,000 | |
FRANCE—8.0% | |||
Banijay Group SAS REGS, 6.50%, 03/01/2026(a)(b) | EUR | 2,000,000 | 1,828,262 |
CAB SELAS, 3.38%, 02/01/2028(a)(b) | 3,305,000 | 2,547,609 | |
Electricite de France SA, (fixed rate to 01/22/2026, variable rate thereafter), 5.00%, 01/22/2026(a)(f) | 3,200,000 | 2,688,039 | |
Iliad Holding SASU, 7.00%, 10/15/2028(a)(b) | $ | 1,568,000 | 1,419,040 |
Loxam SAS, 5.75%, 07/15/2027(a)(b) | EUR | 3,500,000 | 2,759,995 |
Mobilux Finance SAS, 4.25%, 07/15/2028(a)(b) | 3,000,000 | 2,067,396 | |
Total France | 13,310,341 | ||
GEORGIA—0.3% | |||
Bank of Georgia JSC, (fixed rate to 06/28/2024, variable rate thereafter), 11.13%, 06/28/2024(a)(f) | $ | 526,000 | 518,767 |
GERMANY—8.8% | |||
Cheplapharm Arzneimittel GmbH, 4.38%, 01/15/2028(a)(b) | EUR | 3,300,000 | 2,747,907 |
CT Investment GmbH, 5.50%, 04/15/2026(a)(b) | 3,400,000 | 2,758,399 | |
Deutsche Bank AG, (fixed rate to 04/30/2026, variable rate thereafter), 7.13%, 04/30/2026(a)(f) | GBP | 1,600,000 | 1,532,124 |
HT Troplast GmbH, 9.25%, 07/15/2025(a)(b) | EUR | 4,865,000 | 4,182,336 |
PrestigeBidCo GmbH, 3 mo. Euribor + 6.000%, 7.38%, 07/15/2027(a)(b)(g) | 2,176,000 | 1,962,656 | |
Standard Profil Automotive GmbH, 6.25%, 04/30/2026(a)(b) | 2,500,000 | 1,425,550 | |
Total Germany | 14,608,972 | ||
ISRAEL—1.7% | |||
Teva Pharmaceutical Finance Netherlands II BV, 4.38%, 05/09/2030(b) | 3,500,000 | 2,780,070 |
Shares or Principal Amount | Value | ||
ITALY—3.2% | |||
Gamma Bidco SpA, 6.25%, 07/15/2025(a)(b) | EUR | 1,000,000 | $ 935,104 |
Gamma Bondco Sarl, 8.13%, 11/15/2026(a)(b)(d) | 5,500,000 | 4,473,258 | |
Total Italy | 5,408,362 | ||
LUXEMBOURG—25.3% | |||
Albion Financing 2Sarl, 8.75%, 04/15/2027(a)(b) | $ | 6,485,000 | 5,447,400 |
Altice Finco SA, 4.75%, 01/15/2028(a)(b) | EUR | 5,000,000 | 3,427,497 |
Altice France Holding SA | |||
10.50%, 05/15/2027(a)(b) | $ | 2,700,000 | 2,104,029 |
6.00%, 02/15/2028(a)(b) | 10,000,000 | 6,466,709 | |
Cidron Aida Finco Sarl | |||
5.00%, 04/01/2028(a)(b) | EUR | 2,000,000 | 1,547,516 |
6.25%, 04/01/2028(a)(b) | GBP | 2,993,000 | 2,610,318 |
Cirsa Finance International Sarl, 10.38%, 11/30/2027(b) | EUR | 1,590,000 | 1,573,281 |
Cullinan Holdco Scsp, 4.63%, 10/15/2026(a)(b) | 2,031,000 | 1,662,711 | |
Garfunkelux Holdco 3 SA | |||
7.75%, 11/01/2025(a)(b) | GBP | 4,214,000 | 3,438,984 |
7.75%, 11/01/2025(a)(b) | 3,000,000 | 2,448,256 | |
Herens Midco Sarl, 5.25%, 05/15/2029(a)(b) | EUR | 2,000,000 | 1,276,819 |
HSE Finance Sarl, 5.63%, 10/15/2026(a)(b) | 625,000 | 340,205 | |
LHMC Finco 2 Sarl PIK, 7.25%, 10/02/2025(a)(b)(d) | 246,424 | 207,861 | |
Monitchem HoldCo 2 SA, 9.50%, 09/15/2026(a)(b) | 5,150,000 | 4,643,902 | |
Summer BC Holdco A Sarl, 9.25%, 10/31/2027(a)(b) | 6,397,473 | 4,905,158 | |
Total Luxembourg | 42,100,646 | ||
MAURITIUS—0.7% | |||
Axian Telecom, 7.38%, 02/16/2027(a)(b) | $ | 1,447,000 | 1,237,185 |
MEXICO—4.2% | |||
Braskem Idesa SAPI, 6.99%, 02/20/2032(a)(b) | 1,079,000 | 721,721 | |
Petroleos Mexicanos | |||
6.49%, 01/23/2027(b) | 4,200,000 | 3,658,200 | |
4.75%, 02/26/2029(a) | EUR | 1,400,000 | 1,013,450 |
Sixsigma Networks Mexico SA de CV, 7.50%, 05/02/2025(a)(b) | $ | 1,500,000 | 1,242,198 |
Unifin Financiera SAB de CV | |||
(fixed rate to 01/29/2025, variable rate thereafter), 8.88%, 01/29/2025(a)(c)(e)(f) | 2,000,000 | 32,500 | |
8.38%, 01/27/2028(a)(b)(c)(e) | 3,000,000 | 270,000 | |
Total Mexico | 6,938,069 | ||
NETHERLANDS—7.8% | |||
Samvardhana Motherson Automotive Systems Group BV, 1.80%, 07/06/2024(a) | EUR | 963,000 | 847,342 |
Sigma Holdco BV, 7.88%, 05/15/2026(a)(b) | $ | 4,300,000 | 2,634,911 |
Stichting AK Rabobank Certificaten, 6.50%, 12/29/2049(a)(f) | EUR | 5,000,000 | 4,662,266 |
Summer BidCo BV, 9.00%, 11/15/2025(a)(b)(d) | 6,683,717 | 4,827,875 | |
Total Netherlands | 12,972,394 |
8 | abrdn Income Credit Strategies Fund |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
NIGERIA—1.3% | |||
IHS Netherlands Holdco BV, 8.00%, 09/18/2027(a)(b) | $ | 2,860,000 | $ 2,207,577 |
PORTUGAL—1.6% | |||
Novo Banco SA, (fixed rate to 07/06/2023, variable rate thereafter), 8.50%, 07/06/2028(a)(b) | EUR | 3,000,000 | 2,662,345 |
REPUBLIC OF IRELAND—2.7% | |||
Virgin Media Vendor Financing Notes III DAC, 4.88%, 07/15/2028(a)(b) | GBP | 5,000,000 | 4,580,031 |
SPAIN—4.9% | |||
Cirsa Finance International Sarl, 6.25%, 12/20/2023(a)(b) | EUR | 5,264,857 | 5,189,309 |
Telefonica Europe BV, 2.38%, 02/12/2029(a)(f) | 4,100,000 | 3,001,826 | |
Total Spain | 8,191,135 | ||
SWEDEN—4.7% | |||
DDM Debt AB, 9.00%, 04/19/2026(a)(b) | 6,400,000 | 4,300,863 | |
Intrum AB, 3.50%, 07/15/2026(a)(b) | 4,400,000 | 3,533,427 | |
Total Sweden | 7,834,290 | ||
TURKEY—0.5% | |||
Yapi ve Kredi Bankasi AS, (fixed rate to 01/22/2026, variable rate thereafter), 7.88%, 01/22/2031(a)(b) | $ | 983,000 | 867,380 |
UKRAINE—0.3% | |||
MHP Lux SA, 6.95%, 04/03/2026(a)(e) | 1,057,000 | 472,479 | |
UNITED ARAB EMIRATES—0.1% | |||
Emirates Reit Sukuk Ltd., 5.13%, 12/12/2022(a) | 200,000 | 155,150 | |
UNITED KINGDOM—30.5% | |||
BCP V Modular Services Finance PLC, 6.75%, 11/30/2029(a)(b) | EUR | 2,700,000 | 1,841,109 |
Bellis Acquisition Co. PLC, 4.50%, 02/16/2026(a)(b) | GBP | 3,600,000 | 3,473,247 |
eG Global Finance PLC, 6.25%, 10/30/2025(a)(b) | EUR | 3,000,000 | 2,557,096 |
EnQuest PLC | |||
7.00%, 10/15/2023(a)(d) | GBP | 639,725 | 729,968 |
11.63%, 11/01/2027(b) | $ | 2,650,000 | 2,590,905 |
Galaxy Finco Ltd., 9.25%, 07/31/2027(a)(b) | GBP | 6,300,000 | 5,687,103 |
Intu Properties PLC, 11.00%, 12/04/2024(c)(h) | 3,567,071 | 3,926,678 | |
Ithaca Energy North Sea PLC, 9.00%, 07/15/2026(a)(b) | $ | 5,236,000 | 5,168,874 |
Jaguar Land Rover Automotive PLC | |||
4.50%, 01/15/2026(a)(b) | EUR | 1,000,000 | 837,431 |
4.50%, 10/01/2027(a)(b) | $ | 1,700,000 | 1,205,002 |
Jerrold Finco PLC, 4.88%, 01/15/2026(a)(b) | GBP | 2,900,000 | 2,735,403 |
Motion Bondco DAC, 6.63%, 11/15/2027(a)(b) | $ | 4,000,000 | 3,346,320 |
Punch Finance PLC, 6.13%, 06/30/2026(a)(b) | GBP | 2,740,000 | 2,724,314 |
Sherwood Financing PLC, 6.00%, 11/15/2026(a)(b) | 4,710,000 | 3,916,034 | |
Stonegate Pub Co. Financing 2019 PLC, 8.00%, 07/13/2025(a)(b) | 2,000,000 | 2,064,239 | |
TalkTalk Telecom Group Ltd., 3.88%, 02/20/2025(a)(b) | 1,600,000 | 1,449,555 |
Shares or Principal Amount | Value | ||
Very Group Funding PLC, 6.50%, 08/01/2026(a)(b) | GBP | 4,095,000 | $ 3,181,638 |
Wheel Bidco Ltd., 6.75%, 07/15/2026(a)(b) | 3,783,000 | 3,405,599 | |
Total United Kingdom | 50,840,515 | ||
UNITED STATES—47.7% | |||
Adams Homes, Inc., 7.50%, 02/15/2025(a)(b) | $ | 2,023,000 | 1,636,697 |
Adient Global Holdings Ltd., 3.50%, 08/15/2024(a)(b) | EUR | 2,725,000 | 2,544,866 |
Affinity Gaming, 6.88%, 12/15/2027(a)(b) | $ | 2,139,000 | 1,785,535 |
Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc., 4.75%, 07/15/2027(a)(b) | GBP | ���955,000 | 709,390 |
ASP Unifrax Holdings, Inc., 7.50%, 09/30/2029(a)(b) | $ | 2,162,000 | 1,448,540 |
Banff Merger Sub, Inc. | |||
8.38%, 09/01/2026(a)(b) | EUR | 4,200,000 | 3,814,098 |
8.38%, 09/01/2026(a)(b) | 2,400,000 | 2,179,484 | |
Carnival Corp. | |||
10.13%, 02/01/2026(a)(b) | 236,000 | 227,979 | |
7.63%, 03/01/2026(a)(b) | $ | 324,000 | 243,632 |
Cimpress PLC, 7.00%, 06/15/2026(a)(b) | 3,432,000 | 2,050,620 | |
Clydesdale Acquisition Holdings, Inc. | |||
6.63%, 04/15/2029(a)(b) | 1,460,000 | 1,386,124 | |
8.75%, 04/15/2030(a)(b) | 1,567,000 | 1,377,001 | |
Condor Merger Sub, Inc., 7.38%, 02/15/2030(a)(b) | 6,715,000 | 5,553,797 | |
Consensus Cloud Solutions, Inc. | |||
6.00%, 10/15/2026(a)(b) | 913,000 | 822,385 | |
6.50%, 10/15/2028(a)(b) | 2,576,000 | 2,273,787 | |
Cornerstone Building Brands, Inc., 6.13%, 01/15/2029(a)(b) | 3,022,000 | 1,888,750 | |
CSC Holdings LLC, 7.50%, 04/01/2028(a)(b) | 4,000,000 | 3,465,480 | |
Encore Capital Group, Inc., 5.38%, 02/15/2026(a)(b) | GBP | 1,500,000 | 1,497,003 |
Ford Motor Credit Co. LLC, 4.54%, 03/06/2025 | 2,700,000 | 2,853,889 | |
Frontier Communications Holdings LLC | |||
6.00%, 01/15/2030(a)(b) | $ | 3,088,000 | 2,414,816 |
8.75%, 05/15/2030(a)(b) | 1,306,000 | 1,333,752 | |
Goodyear Europe BV | |||
2.75%, 08/15/2028(a)(b) | EUR | 2,000,000 | 1,582,603 |
2.75%, 08/15/2028(a)(b) | 1,019,000 | 806,336 | |
ITT Holdings LLC, 6.50%, 08/01/2029(a)(b) | $ | 3,825,000 | 3,073,407 |
MajorDrive Holdings IV LLC, 6.38%, 06/01/2029(a)(b) | 3,506,000 | 2,470,678 | |
Mauser Packaging Solutions Holding Co., 7.25%, 04/15/2025(a)(b) | 4,324,000 | 3,892,022 | |
Michaels Cos., Inc., 5.25%, 05/01/2028(a)(b) | 934,000 | 663,271 | |
Moss Creek Resources Holdings, Inc. | |||
7.50%, 01/15/2026(a)(b) | 2,567,000 | 2,361,640 | |
10.50%, 05/15/2027(a)(b) | 548,000 | 526,080 | |
NCL Corp. Ltd. | |||
5.88%, 03/15/2026(a)(b) | 721,000 | 590,319 | |
7.75%, 02/15/2029(a)(b) | 785,000 | 625,355 | |
NCL Finance Ltd., 6.13%, 03/15/2028(a)(b) | 3,303,000 | 2,568,082 | |
New Enterprise Stone & Lime Co., Inc., 9.75%, 07/15/2028(a)(b) | 4,814,000 | 4,131,916 | |
Photo Holdings Merger Sub, Inc., 8.50%, 10/01/2026(a)(b) | 2,224,000 | 1,463,548 | |
Staples, Inc., 10.75%, 04/15/2027(a)(b) | 8,205,000 | 5,975,340 |
abrdn Income Credit Strategies Fund | 9 |
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UNITED STATES (continued) | |||
Viking Cruises Ltd., 5.88%, 09/15/2027(a)(b) | $ | 2,870,000 | $ 2,268,009 |
Virtusa Corp., 7.13%, 12/15/2028(a)(b) | 1,904,000 | 1,365,782 | |
Weatherford International Ltd. | |||
11.00%, 12/01/2024(a)(b) | 62,000 | 63,724 | |
8.63%, 04/30/2030(a)(b) | 3,687,000 | 3,474,997 | |
Total United States | 79,410,734 | ||
Total Corporate Bonds | 273,519,816 | ||
BANK LOANS—3.2% | |||
UNITED KINGDOM—3.2% | |||
Impala Bidco 0 Ltd. GBP Term Loan, 7.44%, 06/08/2028 | GBP | 1,000,000 | 1,045,021 |
Constellation Automotive Ltd. GBP 2nd Lien Term Loan B, 5.70%, 07/27/2029(c) | 2,000,000 | 1,286,044 | |
EG Finco Ltd. 2021 EUR 2nd Lien Term Loan, 8.70%, 04/30/2027 | EUR | 3,500,000 | 2,997,692 |
Total United Kingdom | 5,328,757 | ||
Total Bank Loans | 5,328,757 | ||
COMMON STOCKS—0.3% | |||
UNITED STATES—0.3% | |||
California Resources Corp. | 9,723 | 438,604 | |
Total Common Stocks | 438,604 | ||
WARRANTS—0.2% | |||
UNITED STATES—0.2% | |||
California Resources Corp.(i) | 22,363 | 317,555 | |
Total Warrants | 317,555 | ||
SHORT-TERM INVESTMENT—7.9% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(j) | 13,216,294 | 13,216,294 | |
Total Short-Term Investment | 13,216,294 | ||
Total Investments (Cost $379,621,428)(k)—175.7% | 292,821,026 | ||
Liabilities in Excess of Other Assets—(75.7%) | (126,170,740) | ||
Net Assets—100.0% | $166,650,286 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | The maturity date presented for these instruments represents the next call/put date. |
(c) | Illiquid security. |
(d) | Payment-in-kind security for which part of the income earned may be paid as additional principal. |
(e) | Security is in default. |
(f) | 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. |
(g) | Variable or Floating Rate security. Rate disclosed is as of October 31, 2022. |
(h) | Level 3 security. See Note 2(a) of the accompanying Notes to Financial Statements. |
(i) | Non-income producing security. |
(j) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(k) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
EUR | Euro Currency |
GBP | British Pound Sterling |
PIK | Payment-In-Kind |
PLC | Public Limited Company |
USD | U.S. Dollar |
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 | ||||||||
11/29/2022 | Morgan Stanley & Co. | EUR | 1,559,869 | USD | 1,552,798 | $1,544,490 | $(8,308) |
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/British Pound | ||||||||
11/29/2022 | Morgan Stanley & Co. | USD | 51,703,589 | GBP | 45,827,000 | $52,593,087 | $(889,498) | |
11/29/2022 | UBS AG | USD | 3,808,123 | GBP | 3,284,969 | 3,769,975 | 38,148 |
10 | abrdn Income Credit Strategies Fund |
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Euro | ||||||||
11/29/2022 | Morgan Stanley & Co. | USD | 2,893,954 | EUR | 2,898,920 | $ 2,870,339 | $ 23,615 | |
11/29/2022 | Morgan Stanley & Co. | USD | 89,906,187 | EUR | 91,234,611 | 90,335,087 | (428,900) | |
11/29/2022 | Royal Bank of Canada (UK) | USD | 3,061,231 | EUR | 3,053,739 | 3,023,630 | 37,601 | |
11/29/2022 | Royal Bank of Canada (UK) | USD | 579,501 | EUR | 591,000 | 585,173 | (5,672) | |
11/29/2022 | UBS AG | USD | 7,098,056 | EUR | 7,045,406 | 6,975,942 | 122,114 | |
$160,153,233 | $(1,102,592) | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $ 221,478 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(1,332,378) |
abrdn Income Credit Strategies Fund | 11 |
Assets | |
Investments, at value (cost $366,405,134) | $ 279,604,732 |
Short-term investments, at value (cost $13,216,294) | 13,216,294 |
Foreign currency, at value (cost $1,050,216) | 1,053,230 |
Cash | 107,190 |
Receivable for investments sold | 64,907 |
Interest and dividends receivable | 6,294,468 |
Unrealized appreciation on forward foreign currency exchange contracts | 221,478 |
Prepaid expenses in connection with stock offering (Note 5) | 38,662 |
Prepaid expenses in connection with the shelf registration (Note 5) | 59,956 |
Prepaid expenses | 14,032 |
Total assets | 300,674,949 |
Liabilities | |
Revolving credit facility payable (Note 8) | 88,000,000 |
Payable for investments purchased | 3,921,733 |
Unrealized depreciation on forward foreign currency exchange contracts | 1,332,378 |
Investment advisory fees payable (Note 3) | 308,461 |
Dividend payable on preferred shares | 175,003 |
Administration fees payable (Note 3) | 31,234 |
Investor relations fees payable (Note 3) | 7,642 |
Other accrued expenses | 248,212 |
Total liabilities | 94,024,663 |
Cumulative Preferred Shares, $0.001 par value | |
Series A Mandatory Redeemable Preferred Shares (5.25%, $25.00 liquidation value per share, 1,600,000 shares outstanding) (Note 7) | 40,000,000 |
Net Assets Applicable to Common Shareholders | $166,650,286 |
Composition of Net Assets Attributable to Common Shareholders | |
Common stock (par value $0.001 per share) (Note 5) | $ 24,817 |
Paid-in capital in excess of par | 322,693,053 |
Distributable accumulated loss | (156,067,584) |
Net Assets | $166,650,286 |
Net asset value per share based on 24,817,382 common shares issued and outstanding | $ 6.72(a) |
(a) | The NAV shown above differs from the traded NAV on October 31, 2022 due to financial statement rounding and/or financial statement adjustments. |
12 | abrdn Income Credit Strategies Fund |
Net Investment Income | |
Investment Income: | |
Dividends and other income | $ 52,328 |
Interest income (net of foreign withholding taxes of $25,173) | 28,462,718 |
Total investment income | 28,515,046 |
Expenses: | |
Investment advisory fee (Note 3) | 4,403,179 |
Administration fee (Note 3) | 440,318 |
Trustees' fees and expenses | 273,706 |
Independent auditors’ fees and expenses | 92,001 |
Investor relations fees and expenses (Note 3) | 89,784 |
Reports to shareholders and proxy solicitation | 77,993 |
Legal fees and expenses | 56,092 |
Transfer agent’s fees and expenses | 29,375 |
Custodian’s fees and expenses | 22,941 |
Insurance expense | 21,028 |
Miscellaneous | 139,981 |
Total operating expenses, excluding interest expense | 5,646,398 |
Interest expense and commitment fee on credit facility (Note 8) | 2,512,850 |
Total operating expenses before reimbursed/waived expenses | 8,159,248 |
Investment advisor waiver | (519,698) |
Net expenses | 7,639,550 |
Net Investment Income | 20,875,496 |
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: | |
Net realized gain/(loss) from: | |
Investment transactions | (24,301,519) |
Forward foreign currency exchange contracts | 28,709,888 |
Foreign currency transactions | (506,341) |
3,902,028 | |
Net change in unrealized appreciation/(depreciation) on: | |
Investments | (81,883,032) |
Forward foreign currency exchange contracts | (2,542,771) |
Foreign currency translation | (76,677) |
(84,502,480) | |
Net realized and unrealized loss from investments, forward foreign currency exchange contracts and foreign currencies | (80,600,452) |
Net Decrease in Net Assets Resulting from Operations | $(59,724,956) |
Total distributions to preferred shareholders | (2,070,833) |
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations | $(61,795,789) |
abrdn Income Credit Strategies Fund | 13 |
For the Year Ended October 31, 2022 | For the Year Ended October 31, 2021 | |
Increase/(Decrease) in Net Assets: | ||
Operations: | ||
Net investment income | $ 20,875,496 | $ 19,156,686 |
Net realized gain/(loss) from investments, forward foreign currency exchange contracts and foreign currency transactions | 3,902,028 | 5,376,780 |
Net change in unrealized appreciation/(depreciation) on investments, forward foreign currency exchange contracts and foreign currency translation | (84,502,480) | 10,453,855 |
Net increase/(decrease) in net assets applicable to common shareholders resulting from operations | (59,724,956) | 34,987,321 |
Distributions to Preferred Shareholders from: | ||
Distributable earnings | (2,070,833) | (1,020,833) |
Net decrease in net assets from distributions to preferred shareholders | (2,070,833) | (1,020,833) |
Net decrease in net assets attributable to common shareholders resulting from operations | (61,795,789) | 33,966,488 |
Distributions to Common Shareholders from: | ||
Distributable earnings | (28,744,450) | (21,935,079) |
Tax return of capital | – | (1,313,879) |
Net decrease in net assets applicable to common shareholders from distributions | (28,744,450) | (23,248,958) |
Proceeds from the rights offerings resulting in the issuance of 0 and 5,812,247 shares, respectively (net of offering costs of $0 and $529,848, respectively) | – | 57,139,536 |
Proceeds from at the market stock offering resulting in the issuance of 1,523,512 and 0 shares of common stock, respectively (Note 5) | 13,839,680 | – |
Expenses in connection with the at-the-market stock offering (Note 5) | (6,284) | – |
Expenses in connection with the shelf offering (Note 5) | (5,301) | – |
Reinvestment of dividends resulting in the issuance of 32,025 and 17,502 shares of common stock, respectively | 285,045 | 194,379 |
Expenses in connection with the issuance of preferred shares | – | (1,845,297) |
Change in net assets from capital transactions | 14,113,140 | 55,488,618 |
Change in net assets applicable to common shareholders | (76,427,099) | 66,206,148 |
Net Assets: | ||
Beginning of year | 243,077,385 | 176,871,237 |
End of year | $166,650,286 | $243,077,385 |
14 | abrdn Income Credit Strategies Fund |
Cash flows from operating activities: | |
Net increase (decrease) in net assets resulting from operations | $ (59,724,956) |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | |
Investments purchased | (225,449,622) |
Investments sold and principal repayments | 222,487,633 |
Decrease in short-term investments, excluding foreign government | 2,543,923 |
Net amortization/accretion of premium (discount) | (1,489,319) |
Decrease in receivable for common shares sold | 28,845 |
Decrease in interest and dividends receivable | 1,298,211 |
Net change unrealized (appreciation) depreciation on forward foreign currency exchange contracts | 2,542,771 |
Increase in prepaid expenses | (33,897) |
Decrease in accrued investment management fees payable | (82,578) |
Increase in other accrued expenses | 14,711 |
Net change in unrealized depreciation of investments | 81,883,032 |
Net change unrealized depreciation on forward foreign currency translations | 76,677 |
Net realized loss on investments transactions | 24,301,519 |
Net cash provided by operating activities | 48,396,950 |
Cash flows from financing activities: | |
Decrease in due to custodian | (532,882) |
Borrowings on line of credit | 4,000,000 |
Repayment of revolving credit facility | (34,000,000) |
Distributions paid to shareholders | (30,815,283) |
Proceeds from at-the-market stock offering | 13,839,680 |
Proceeds from reinvestment of dividends | 285,045 |
Expenses in connection with the at-the-market and shelf offering | (11,585) |
Net cash used in financing activities | (47,235,025) |
Effect of exchange rate on cash | (1,505) |
Net change in cash | 1,160,420 |
Unrestricted and restricted cash and foreign currency, beginning of year | – |
Unrestricted and restricted cash and foreign currency, end of year | $ 1,160,420 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest and fees on borrowing | $ 2,512,850 |
abrdn Income Credit Strategies Fund | 15 |
For the Fiscal Years Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
PER SHARE OPERATING PERFORMANCE(a): | |||||
Net asset value per common share, beginning of year | $10.45 | $10.15 | $12.46 | $14.08 | $15.25 |
Net investment income | 0.87 | 0.98 | 0.87 | 1.05 | 1.55 |
Net realized and unrealized gains/(losses) on investments, forward foreign currency exchange contracts and foreign currency transactions | (3.35) | 1.11 | (1.07) | (1.23) | (1.28) |
Total from investment operations applicable to common shareholders | (2.48) | 2.09 | (0.20) | (0.18) | 0.27 |
Distributions to preferred shareholders from: | |||||
Net investment income | (0.09) | (0.05) | – | – | – |
Net increase/(decrease) in net assets attributable to common shareholders resulting from operations | (2.57) | 2.04 | – | – | – |
Distributions to common shareholders from: | |||||
Net investment income | (1.20) | (1.13) | (0.77) | (1.41) | (1.44) |
Tax return of capital | – | (0.07) | (0.63) | (0.03) | – |
Total distributions | (1.20) | (1.20) | (1.40) | (1.44) | (1.44) |
Capital Share Transactions: | |||||
Offering costs for preferred shares charged to paid-in-capital | – | (0.11) | – | – | – |
Impact of shelf offering | 0.04 | – | – | – | – |
Dilutive effect of rights offer (Note 5) | – | (0.43) | (0.71) | – | – |
Total capital share transactions | 0.04 | (0.54) | – | – | – |
Net asset value per common share, end of year | $6.72 | $10.45 | $10.15 | $12.46 | $14.08 |
Market price, end of year | $6.37 | $11.30 | $9.18 | $11.33 | $13.09 |
Total Investment Return Based on(b): | |||||
Market price | (34.92%) | 37.13% | (6.16%) | (2.48%) | (0.75%) |
Net asset value | (25.76%)(c) | 14.69% | (5.65%) | (0.29%) | 2.34% |
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data: | |||||
Net assets including liquidation value of preferred shares, end of year(000 omitted) | $206,650 | $283,077 | $– | $– | $– |
Net assets applicable to common shareholders, end of year (000 omitted) | $166,650 | $243,077 | $176,871 | $162,939 | $184,028 |
Average net assets applicable to common shareholders (000 omitted) | $206,720 | $218,990 | $181,152 | $167,302 | $195,965 |
Net operating expenses, net of fee waivers/recoupments | 3.70% | 2.86% | 3.06% | 3.89% | 3.49% |
Net operating expenses, excluding fee waivers/recoupments | 3.95% | 3.01% | 3.24% | 4.05% | 3.55% |
Net operating expenses, net of fee waivers/recoupment, excluding interest expense, commitment fee and loan servicing fees | 2.48% | 2.24% | 2.15% | 2.27% | 2.24% |
Net Investment income | 10.10% | 8.75% | 8.26% | 8.19% | 10.34% |
Portfolio turnover | 66% | 63% | 97% | 93% | 103% |
Senior securities (loan facility) outstanding (000 omitted) | $88,000 | $118,000 | $81,200 | $72,000 | $83,000 |
Asset coverage ratio on senior securities year end(d) | 335% | 340% | 318% | 326% | 322% |
Asset coverage per $1000 on senior securities year end | $3,348 | $3,399 | $3,178 | $3,263 | $3,217 See Notes to Financial Statements. |
16 | abrdn Income Credit Strategies Fund |
For the Fiscal Years Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Asset coverage ratio on total leverage at year end(e) | 230% | 254% | 318% | 326% | 322% |
Asset coverage per $1,000 on total leverage at year end | $2,302 | $2,538 | $3,178 | $3,263 | $3,217 |
(a) | Based on average shares outstanding. |
(b) | Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value. |
(c) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(d) | Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings, including Series A Perpetual Preferred Shares, for investment purposes by the amount of any senior securities, which includes the revolving credit facility. |
(e) | Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings for investment purposes by the amount of any borrowings. |
abrdn Income Credit Strategies Fund | 17 |
October 31, 2022
18 | abrdn Income Credit Strategies Fund |
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. |
Forward foreign currency contracts | Forward exchange rate quotations. |
abrdn Income Credit Strategies Fund | 19 |
October 31, 2022
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Assets | ||||
Investments in Securities | ||||
Bank Loans | $ – | $ 5,328,757 | $ – | $ 5,328,757 |
Common Stocks | 438,604 | – | – | 438,604 |
Corporate Bonds | – | 269,593,138 | 3,926,678 | 273,519,816 |
Warrants | 317,555 | – | – | 317,555 |
Short-Term Investment | 13,216,294 | – | – | 13,216,294 |
Total Investments | $13,972,453 | $274,921,895 | $3,926,678 | $ 292,821,026 |
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $ – | $ 221,478 | $ – | $ 221,478 |
Total Assets | $13,972,453 | $275,143,373 | $3,926,678 | $293,042,504 |
Liabilities | ||||
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $ – | $ (1,332,378) | $ – | $ (1,332,378) |
Total Liabilities | $ – | $ 1,332,378) | $ – | $ (1,332,378) |
Rollforward of Level 3 Fair Value Measurement For the Year Ended October 31, 2022 | ||||||||||
Investments in Securities | Balance as of October 31, 2021 | Accrued Discounts (Premiums) | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Net Purchases | Net Sales | Net Transfers in to Level 3 | Net Transfers out of Level 3 | Balance as of October 31, 2022 | Change in Unrealized Appreciation (Depreciation) from Investments Held at October 31, 2022 |
Corporate Bonds | ||||||||||
United Kingdom | $4,512,120 | $18,937 | $- | $(1,079,849) | $475,470 | $- | $- | $- | $3,926,678 | $(1,079,849) |
Total | $4,512,120 | $18,937 | $- | $(1,079,849) | $475,470 | $- | $- | $- | $3,926,678 | $(1,079,849) |
Description | Fair Value at 10/31/22 | Valuation Technique (s) | Unobservable Inputs | Range | Weighted Average |
Corporate Bonds | $3,926,678 | Income Method | Credit Spread | 16.89% | 16.89% |
20 | abrdn Income Credit Strategies Fund |
October 31, 2022
abrdn Income Credit Strategies Fund | 21 |
October 31, 2022
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Assets: | ||||||
Unrealized appreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $ 221,478 | $– | $– | $– | $ 221,478 |
Total | $– | $ 221,478 | $– | $– | $– | $ 221,478 |
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $ 1,332,378 | $– | $– | $– | $ 1,332,378 |
Total | $– | $1,332,378 | $– | $– | $– | $1,332,378 |
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 | Net Amount | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amount | |
Description | Assets | Liabilities | ||||||
Foreign Currency Exchange Contracts | ||||||||
Morgan Stanley & Co. | $23,615 | $(23,615) | $– | $– | $1,326,706 | $(23,615) | $– | $1,303,091 |
Royal Bank of Canada (UK) | 37,601 | (5,672) | – | 31,929 | 5,672 | (5,672) | – | – |
UBS AG | 160,262 | – | – | 160,262 | – | – | – | – |
22 | abrdn Income Credit Strategies Fund |
October 31, 2022
Risk Exposure Category | ||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | |
Realized Gain (Loss) on Derivatives Recognized as a Result of Operations: | ||||||
Net realized gain (loss) on: | ||||||
Forward Currency Contracts | $– | $ 28,709,888 | $– | $– | $– | $ 28,709,888 |
Total | $– | $28,709,888 | $– | $– | $– | $28,709,888 |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Forward Currency Contracts | $– | $ (2,542,771) | $– | $– | $– | $ (2,542,771) |
Total | $– | $ (2,542,771) | $– | $– | $– | $ (2,542,771) |
Derivative | Average Notional Value |
Foreign Currency Contracts Purchased | $ 4,703,563 |
Foreign Currency Contracts Sold | $158,009,043 |
abrdn Income Credit Strategies Fund | 23 |
October 31, 2022
24 | abrdn Income Credit Strategies Fund |
October 31, 2022
Amount Fiscal Year 2020 (Expires 10/31/23) | $ 335,688 | |
Amount Fiscal Year 2021 (Expires 10/31/24) | $ 332,380 | |
Amount Fiscal Year 2022 (Expires 10/31/25) | $ 519,698 | |
Total* | $1,187,766 |
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
abrdn Income Credit Strategies Fund | 25 |
October 31, 2022
26 | abrdn Income Credit Strategies Fund |
October 31, 2022
abrdn Income Credit Strategies Fund | 27 |
October 31, 2022
28 | abrdn Income Credit Strategies Fund |
October 31, 2022
abrdn Income Credit Strategies Fund | 29 |
October 31, 2022
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
$380,412,612 | $6,366,032 | $(93,957,618) | $(87,591,586) |
October 31, 2022 | October 31, 2021 | |||
Common | Preferred | Common | Preferred | |
Distributions paid from: | ||||
Ordinary Income | $ 28,744,450 | $ 2,070,833 | $ 21,935,079 | $ 1,020,833 |
Net long-term capital gains | — | — | — | — |
Tax return of capital | — | — | 1,313,879 | — |
Total tax character of distributions | $28,744,450 | $2,070,833 | $23,248,958 | $1,020,833 |
Undistributed Ordinary Income | $ 15,078,133 |
Undistributed Long-Term Capital Gains | - |
Total undistributed earnings | $ 15,078,133 |
Capital loss carryforward | $ (82,382,140)* |
Other currency gains | — |
Other Temporary Differences | (828,851) |
Unrealized Appreciation/(Depreciation) | (87,912,284)** |
Total accumulated earnings/(losses) – net | $(156,045,142) |
* | On October 31, 2022, the Fund had a net capital loss carryforward of $(82,382,140) which will be available to offset like amounts of any future taxable gains. The Fund is permitted to carry forward capital losses for an unlimited period and capital losses that are carried forward will retain their character as either short-term or long-term capital losses. The breakdown of capital loss carryforwards are as follows: |
Amounts | Expires |
$28,763,878 | Unlimited (Short-Term) |
53,618,262 | Unlimited (Long-Term) |
30 | abrdn Income Credit Strategies Fund |
October 31, 2022
Paid-in Capital | Distributable Earnings/ (Accumulated Loss) |
$(2,077,902) | $2,077,902 |
abrdn Income Credit Strategies Fund | 31 |
abrdn Income Credit Strategies Fund:
December 29, 2022
32 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 33 |
Votes For | Votes Against/ Withheld | Votes Abstained |
11,420,419 | 1,829,195 | 775,377 |
34 | abrdn Income Credit Strategies Fund |
• | the nature, quality, cost and extent of administrative services provided by AI, an affiliate of the Adviser, under a separate agreement covering administrative services. |
• | whether the Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Advisers. The Trustees also considered the compliance-related resources the Advisers and their affiliates were providing to the Fund. |
• | so-called “fallout benefits” to the Advisers and their affiliates, including 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. |
• | the effect of any market and economic volatility on the performance, asset levels and expense ratios of the Fund. |
abrdn Income Credit Strategies Fund | 35 |
36 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 37 |
38 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 39 |
40 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 41 |
42 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 43 |
44 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 45 |
46 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 47 |
48 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 49 |
50 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 51 |
52 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 53 |
54 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 55 |
56 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 57 |
58 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 59 |
60 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 61 |
62 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 63 |
64 | abrdn Income Credit Strategies Fund |
1. | Issue senior securities or borrow money, except the Fund may issue senior securities and/or borrow money (including through reverse repurchase agreements) to the extent permitted by the 1940 Act, as amended from time to time, and as modified or supplemented from time to time by (i) the rules and regulations promulgated by the SEC under the 1940 Act, as amended from time to time and (ii) an exemption or other relief applicable to |
the Fund from the provisions of the 1940 Act, as amended from time to time. The Fund does not have an investment policy limiting the amount of leverage that may be obtained through the use of covered reverse repurchase agreements. |
2. | Act as an underwriter of securities issued by others, except to the extent that, in connection with the disposition of loans or portfolio securities, it may be deemed to be an underwriter under applicable securities laws. |
3. | Invest in any security if as a result, 25% or more of the value of the Fund's total assets, taken at market value at the time of each investment, are in the securities of issuers in any particular industry except (a) securities issued or guaranteed by the U.S. government and its agencies and instrumentalities or securities of state and municipal governments or their political subdivisions (however, not including private purpose industrial development bonds issued on behalf of non-government issuers), or (b) as otherwise provided by the 1940 Act, as amended from time to time, and as modified or supplemented from time to time by (i) the rules and regulations promulgated by the SEC under the 1940 Act, as amended from time to time, and (ii) any exemption or other relief applicable to the Fund from the provisions of the 1940 Act, as amended from time to time. For purposes of this restriction, (i) an investment in a loan participation will be considered to be an investment in the securities or obligations of the issuer of the loan to which the participation relates and (ii) an investment in a repurchase agreement, reverse repurchase agreement, CLO, CBO, CDO or a swap or other derivative will be considered to be an investment in the industry (if any) of the underlying or reference security, instrument or asset. The Fund defines an industry by reference to Bloomberg BICS codes for industry classifications. |
4. | Purchase or sell real estate, except that the Fund may: (a) acquire or lease office space for its own use, (b) invest in securities and/or other instruments of issuers that invest in real estate or interests therein or that are engaged in or operate in the real estate industry, (c) invest in securities and/or other instruments that are secured by real estate or interests therein, (d) purchase and sell mortgage-related securities and/or other instruments, and (e) hold and sell real estate acquired by the Fund as a result of the ownership of securities and/or other instruments. |
5. | Purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments; provided that this restriction shall not prohibit the Fund from purchasing or selling options, futures contracts and related options thereon, forward contracts, swaps, caps, floors, collars and any other financial or derivative instruments or from investing in securities or other instruments backed by physical commodities. |
abrdn Income Credit Strategies Fund | 65 |
6. | Make loans of money or property to any person, except (a) to the extent that securities, instruments, credit obligations or interests (including Senior Loans) in which the Fund may invest, or which the Fund may originate, are considered to be loans, (b) through the loan of portfolio securities or (c) by engaging in repurchase agreements. |
7. | May not purchase securities of any one issuer, other than obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities, if, immediately after such purchase, more than 5% of the Fund's total assets would be invested in such issuer or the Fund would hold more than 10% of the outstanding voting securities of the issuer, except that 25% or less of the Fund's total assets may be invested without regard to such limitations. There is no limit to the percentage of assets that may be invested in U.S. Treasury bills, notes, or other obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. |
1. | Issue senior securities or borrow money, except as permitted by the 1940 Act and the rules and regulations thereunder. Currently, the 1940 Act and the rules and regulations thereunder generally limit the extent to which the Fund may utilize borrowings, together with any other senior securities representing indebtedness, to 33 and 1/3% of the Fund’s total assets at the time utilized (less the Fund’s liabilities and indebtedness not represented by senior securities). In addition, the 1940 Act limits the extent to which the Fund may issue preferred shares plus senior securities representing indebtedness to 50% of the Fund’s total assets (less the Fund’s liabilities and indebtedness not represented by senior securities). Indebtedness associated with reverse repurchase agreements and similar financing transactions may be aggregated with any other senior securities representing indebtedness for this purpose or be treated as derivatives transactions under the 1940 Act and the rules and regulations thereunder, depending on the Fund’s election under applicable SEC requirements. |
2. | Invest in any security if, as a result 25% or more of the value of the Fund's total assets, taken at market value at the time of each investment, are in the securities of issuers in any particular industry except securities issued or guaranteed by the U.S. government and its agencies and instrumentalities or securities of state and municipal governments or their political subdivisions (however, not including private purpose industrial development bonds issued on behalf of non-government issuers). |
66 | abrdn Income Credit Strategies Fund |
Assumed annual returns on the Fund's portfolio (net of expenses) | (10)% | (5)% | 0% | 5% | 10% |
Corresponding return of shareholder | (21.5%) | (12.6%) | (3.8%) | 5.1% | 13.9% |
abrdn Income Credit Strategies Fund | 67 |
68 | abrdn Income Credit Strategies Fund |
abrdn Income Credit Strategies Fund | 69 |
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | Number of Funds in Fund Complex* Overseen by Trustee | Other Directorships Held by Trustee** |
Interested Trustees | |||||
Stephen Bird† c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1967 | Class II Trustee | Term as Trustee expires 2025; Director 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 | |||||
Nancy Yao Maasbach c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1972 | Class II Trustee and Preferred Shares Trustee | Term expires 2025; Trustee since 2019 | Nancy Yao Maasbach has served as the President of the Museum of Chinese in America since 2015. Previously, she served as the executive director of the Yale-China Association and managing director of the corporate program at the Council on Foreign Relations. Prior to her work in non-profit, Ms. Maasbach launched the Asia coverage at the Center for Financial Research and Analysis (currently known as RiskMetrics), served as the inaugural director of policy research of Goldman Sachs' Global Markets Institute, and was an investment banker at Goldman Sachs (Asia) L.L.C. Ms. Maasbach is an independent director of the abrdn-managed India Fund and Asian Emerging Markets Fund. Ms. Maasbach is a board member of the National Committee on U.S.-China Relations, a member of the Council on Foreign Relations, and a lecturer on governance at Yale University. | 7 | None. |
70 | abrdn Income Credit Strategies Fund |
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past Five Years | Number of Funds in Fund Complex* Overseen by Trustee | Other Directorships Held by Trustee** |
P. Gerald Malone c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1950 | Chairman of the Board; Class III Trustee | Term expires 2023; Trustee since 2017 | 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. |
John Sievwright c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1955 | Class I Trustee | Term expires 2024; Trustee since 2017 | Mr. Sievwright is a Non-Executive Director of Burford Capital Ltd (since May 2020) (provider of legal, finance, complex strategies, post-settlement finance and asset management services and products) and Revolut Limited, a UK-based digital banking firm (since August 2021). Previously, he was a Non-Executive Director for the UK company : NEX Group plc (2017-2018) (financial). | 8 | Non-Executive Director of Burford Capital Ltd (provider of legal finance, complex strategies, post-settlement finance and asset management services and products) since May 2020. |
Randolph Takian c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Class III Trustee and Preferred Shares Trustee | Term as Trustee expires 2023; Director since 2010 | Managing Director and Head of Bank and Lending of Global Wealth and Investment Management at Bank of America (since 2019); Vice President of Boulevard Acquisition Corp. II, a blank check company and an affiliate of Avenue Capital Group (from 2015 to 2019); President, Chief Executive Officer and Trustee of Avenue Mutual Funds Trust (from 2012 to 2019); Senior Managing Director and Head of Traditional Asset Management of Avenue Capital Group (from 2010 to 2019). Board Member and member of Executive Committee of Lenox Hill Neighborhood House, a non-profit. | 1 | None. |
* | 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. |
** | Current directorships (excluding Fund Complex) as of October 31, 2022 held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “1934 Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
† | Mr. Bird is considered to be an “interested person” of the Fund as defined in the 1940 Act because of his affiliation with the Adviser. |
abrdn Income Credit Strategies Fund | 71 |
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office* and Length of Time Served | Principal Occupation(s) During Past Five Years |
Joseph Andolina** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Chief Compliance Officer and Vice President – Compliance | 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 2017 | 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 2017 | 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 | Vice President | Since 2017 | 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 2021 | 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 2021 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Hepp joined abrdn Inc. as a Senior Paralegal in 2016. |
Matt Kence** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: | Vice President | Since 2022 | Currently, Investment Director for abrdn Inc. |
Megan Kennedy** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Vice President and Secretary | Since 2017 | 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 2021 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Kim joined abrdn Inc. as a Product Manager in 2013. |
72 | abrdn Income Credit Strategies Fund |
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office* and Length of Time Served | Principal Occupation(s) During Past Five Years |
Brian Kordeck** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Vice President | Since 2021 | 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 2021 | 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 and Chief Financial Officer | Since 2017 | Currently, Vice President and Senior Director, Product Management for abrdn Inc. Ms. Melia joined abrdn Inc. in September 2009. |
Ben Pakenham** c\o Aberdeen Asset Managers Limited Bow Bells House 1 Bread Street London EC4M 9HH Year of Birth: 1973 | Vice President | Since 2017 | Currently, Head of European High Yield and Global Loans. Mr. Pakenham joined abrdn in 2011. |
Christian Pittard** c/o abrdn Investments Limited 280 Bishopsgate London, EC2M 4AG Year of Birth: 1973 | President | Since 2017 | Currently, Group Head of Product Opportunities at abrdn and a Director of Aberdeen Asset Management PLC since 2010. Mr. Pittard joined abrdn from KPMG in 1999. |
Lucia Sitar** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1971 | Vice President | Since 2017 | 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. |
* | Officers hold their positions with the Fund until a successor has been duly elected and qualifies. Officers are elected annually at a meeting of the Board of Trustees. |
** | Each officer may hold officer position(s) in one or more other funds which are part of the Fund Complex. |
abrdn Income Credit Strategies Fund | 73 |
Common Shareholder transaction expenses | |
Sales load (as a percentage of offering price)(1) | 1.00% |
Offering expenses (as a percentage of offering price)(2) | 0.12% |
Dividend reinvestment and optional cash purchase plan fees (per share for open-market purchases of common shares)(3) | |
Fee for Open Market Purchases of Common Shares | $0.02 (per share) |
Fee for Optional Shares Purchases | $5.00 (max) |
Sales of Shares Held in a Dividend Reinvestment Account | $0.12 (per share) and $25.00 (max) |
Annual expenses (as a percentage of net assets attributable to Common Shares) | |
Advisory fee(4) | 2.13% |
Interest expenses on bank borrowings(5) | 1.00% |
Dividends on Preferred Shares(6) | 1.00% |
Other expenses | 0.60% |
Total annual expenses | 4.73% |
Less: expense reimbursement(7) | 0.35% |
Total annual expenses after expense reimbursement | 4.38% |
74 | abrdn Income Credit Strategies Fund |
1 Year | 3 Years | 5 Years | 10 Years |
$44 | $137 | $233 | $476 |
1 Year | 3 Years | 5 Years | 10 Years |
$55 | $147 | $242 | $482 |
Fiscal Period Ended) | Title of Security | Total Principal Amount Outstanding | Aggregate Liquidation Preference | Liquidation Preference Per Share | Asset Coverage Per $1,000 of Principal Amount |
October 31, 2022 | Senior Secured Revolving Credit Facility | $ 88,000,000 | -- | -- | $ 3,348 (1) |
October 31, 2022 | 5.250% Series A Perpetual Preferred Shares | $ 40,000,000 | $ 40,000,000 | $25.00 | $ 2,302(1) |
abrdn Income Credit Strategies Fund | 75 |
Fiscal Period Ended) | Title of Security | Total Principal Amount Outstanding | Aggregate Liquidation Preference | Liquidation Preference Per Share | Asset Coverage Per $1,000 of Principal Amount |
October 31, 2021 | Senior Secured Revolving Credit Facility | $118,000,000 | -- | -- | $3,339(1) |
October 31, 2021 | 5.250% Series A Perpetual Preferred Shares | $ 40,000,000 | $40,000,000 | $25.00 | $2,538 (2) |
October 31, 2020 | Senior Secured Revolving Credit Facility | $81,200,000 | -- | -- | $ 3,178 |
October 31, 2019 | Senior Secured Revolving Credit Facility | $72,000,000 | -- | -- | $ 3,263 |
October 31, 2018 | Senior Secured Revolving Credit Facility | $83,000,000 | -- | -- | $ 3,217 |
October 31, 2017 | Senior Secured Revolving Credit Facility | $83,000,000 | -- | -- | $3,402 |
October 31, 2016 | Senior Secured Revolving Credit Facility | $83,000,000 | -- | -- | $3,305 |
October 31, 2015 | Senior Secured Revolving Credit Facility | $90,000,000 | -- | -- | $3,166 |
October 31, 2014 | Senior Secured Revolving Credit Facility | $100,000,000 | -- | -- | $3,358 |
October 31, 2013 | Senior Secured Revolving Credit Facility | $95,000,000 | -- | -- | $3,564 |
NYSE Market Price(1) | NAV at NYSE Market Price(1) | Market Premium/(Discount) to NAV on Date of NYSE Market Price(1) | ||||
Quarter Ended (2) | High | Low | High | Low | High | Low |
October 31, 2022 | $8.72 | $6.16 | $7.80 | $6.54 | 12.81% | -5.81% |
July 31, 2022 | $9.33 | $7.57 | $8.74 | $7.11 | 6.75% | 3.13% |
April 30, 2022 | $10.51 | $9.34 | $10.01 | $8.80 | 7.68% | 2.64% |
January 31, 2022 | $11.45 | $9.62 | $10.53 | $9.94 | 8.94% | -4.47% |
October 31, 2021 | $11.69 | $10.94 | $11.02 | $10.45 | 6.66% | 1.11% |
July 31, 2021 | $12.59 | $10.76 | $11.71 | $10.87 | 8.35% | -6.19% |
76 | abrdn Income Credit Strategies Fund |
NYSE Market Price(1) | NAV at NYSE Market Price(1) | Market Premium/(Discount) to NAV on Date of NYSE Market Price(1) | ||||
Quarter Ended (2) | High | Low | High | Low | High | Low |
April 30, 2021 | $12.56 | $10.91 | $11.70 | $11.32 | 7.63% | -3.62% |
January 31, 2021 | $11.25 | $9.29 | $11.45 | $10.16 | -1.32% | -8.56% |
abrdn Income Credit Strategies Fund | 77 |
Stephen Bird
Nancy Yao Maasbach
John Sievwright
Randolph Takian
10 Queen's Terrace
Aberdeen, AB10 1XL
Scotland, United Kingdom
1900 Market Street, Suite 200
Philadelphia, PA19103
1900 Market Street, Suite 200
Philadelphia, PA 19103
1 Heritage Drive, 3rd Floor
North Quincy, MA 02171
P.O. Box 43006
Providence, RI 02940-3078
1601 Market Street
Philadelphia, PA 19103
1900 K Street N.W.
Washington D.C. 20006
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abrdn.com
Item 2. Code of Ethics.
(a) | As of October 31, 2022, abrdn Income Credit Strategies Fund (the “Fund” or 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”). |
(b) | Definitional. |
(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 this report, there were no waivers to the provisions of the Code of Ethics. |
(e) | Not applicable |
(f) | A copy of the Code of Ethics has been filed as an exhibit to this Form N-CSR. |
Item 3. Audit Committee Financial Expert.
The Registrant's Board of Trustees has determined that John Sievwright, a member of the Board of Trustees’ Audit Committee, possesses the attributes, and has acquired such attributes through means, identified in instruction 2 of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Sievwright as the Audit Committee’s financial expert. Mr. Sievwright is considered to be an “independent” trustee, as such term is defined in paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) – (d) Below is a table reflecting the fee information requested in Items 4(a) through (d):
Fiscal Year Ended | (a) Audit Fees1 | (b) Audit-Related Fees2 | (c) Tax Fees3 | (d) All Other Fees4 | ||||||||||||
October 31, 2022 | $ | 94,740 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Percentage approved pursuant to pre-approval exception5 | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
October 31, 2021 | $ | 83,633 | $ | 112,000 | $ | 11,605 | $ | 0 | ||||||||
Percentage approved pursuant to pre-approval exception5 | 0 | % | 0 | % | 0 | % | 0 | % |
1 “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements.
2 “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares.
3 “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: federal and state income tax returns, review of excise tax distribution calculations and federal excise tax return.
4 “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”.
5 Pre-approval exception under Rule 2-01 of Regulation S-X. The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
(e)(1) | The Registrant’s Audit Committee (the “Committee”) has adopted a Charter that provides that the Committee shall annually select, retain or terminate, and recommend to the Independent Trustees for their ratification, the selection, retention or termination, the Registrant’s independent auditor and, in connection therewith, to evaluate the terms of the engagement (including compensation of the independent auditor) and the qualifications and independence of the independent auditor, including whether the independent auditor provides any consulting, auditing or tax services to the Registrant’s investment adviser (the “Adviser”) or any sub-adviser, and to receive the independent auditor’s specific representations as to their independence, delineating all relationships that may affect the independent auditor’s independence, including the disclosures required by PCAOB Rule 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 Registrant and its related entities that in the auditor’s professional judgment may reasonably be thought to bear on independence; (2) confirm in the letter that, in its professional judgment, it is independent of the Registrant within the meaning of the Securities Acts administered by the SEC; and (3) discuss the auditor’s independence with the audit 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 Charter also provides that the Committee shall review in advance, and consider approval of, any and all proposals by Management or the Adviser that the Registrant, the Adviser or their affiliated persons, employ the independent auditor to render “permissible non-audit services” to the Registrant and to consider whether such services are consistent with the independent auditor’s independence. “Permissible non-audit services” include any professional services, including tax services, provided to the Registrant by the independent auditor, other than those provided to the Registrant in connection with an audit or a review of the financial statements of the Registrant. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Registrant; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the PCAOB determines, by regulation, is impermissible. Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Registrant constitutes not more than 5% of the total amount of revenues paid by the Registrant to its auditor during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the Registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee or its Delegate(s) prior to the completion of the audit. 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 Registrant. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. Pursuant to this authority, the Registrant’s Committee delegates to the Committee Chair, subject to subsequent ratification by the full Committee, up to a maximum amount of $25,000, which includes any professional services, including tax services, provided to the Registrant by its independent registered public accounting firm other than those provided to the Registrant in connection with an audit or a review of the financial statements of the Registrant. 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 Registrant’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) | Non-Audit Fees |
The following table shows the amount of fees that KPMG LLP billed during the Fund’s last two fiscal years for non-audit services to the Registrant, and to the Adviser, and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”):
Fiscal Year Ended | Total Non-Audit Fees Billed to Fund | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
October 31, 2022 | $ | 0 | $ | 0 | $ | 1,108,929 | $ | 1,108,929 | ||||||||
October 31, 2021 | $ | 11,605 | $ | 0 | $ | 1,547,556 | $ | 1,559,161 |
“Non-Audit Fees billed to Fund” for both fiscal years represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
(h) | Not applicable. |
(i) | Not applicable. |
(j) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
(a) | The Registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). |
As of the fiscal year ended October 31, 2022, the Audit Committee members were:
Nancy Yao Maasbach
P. Gerald Malone
John Sievwright
Randolph Takian
(b) | Not applicable. |
Item 6. Schedule of Investments.
(a) Included as part of the Report 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.
Pursuant to the Registrant's Proxy Voting Policy and Procedures, the Registrant has delegated responsibility for its proxy voting to its Adviser, provided that the Registrant's Board of Trustees has the opportunity to periodically review the Adviser's proxy voting policies and material amendments thereto.
The proxy voting policies of the Registrant are included herewith as Exhibit (c) and policies of the Adviser are included as Exhibit (d).
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) PORTFOLIO MANAGER BIOGRAPHIES
The Fund is managed by abrdn’s Euro High Yield and Global Leverage Loans teams. The Euro High Yield and Global Leverage Loans teams work in a truly collaborative fashion; all team members have both portfolio management and research responsibilities. The teams are responsible for the day-to-day management of the Fund. As of the date of filing this report, the following individuals have primary responsibility for the day-to-day management of the Fund’s portfolio:
Individual & Position | Past Business Experience |
Ben Pakenham Head of European High Yield and Global Loans | Ben Pakenham is Head of European High Yield and Global Loans. He joined abrdn in 2011 from Henderson Global Investors (from 2008-2011), where he was the lead fund manager on the Extra Monthly Income Bond Fund and a named manager on various other credit portfolios including the High Yield Monthly Income Bond Fund. Prior to Henderson Global Investors, he was an Assistant Fund Manager on the High Yield Funds at New Star Asset Management (2005-2008). |
Matthew Kence Investment Director – US High Yield and Global High Yield | Matthew Kence is an Investment Director and is a Portfolio Manager on the abrdn Income Credit Strategies Fund and the Global High Yield strategies at abrdn. He is also responsible for covering US high yield energy companies. Matt joined the company in 2010 from Gannet Welsh & Kotler where he was a Vice President, Credit. Previously, Matt also worked for MFS Investment Management as a high yield analyst. Matt graduated with a BS Mechanical Engineering from Ohio University and received his MBA from the Haas School of Business at the University of California, Berkeley. |
Adam Tabor Investment Director – European High Yield and Leveraged Loans | Adam Tabor is an Investment Director on the Global High Yield team at abrdn. Adam joined the company in 2010 on the graduate rotation scheme having previously interned with the company in 2009. Adam graduated with an MA in Financial Economics from the University of St Andrews. He is a CFA Charterholder. |
George Westervelt Head of Global High Yield and Head of US High Yield Research | George Westervelt is Head of Global High Yield and Head of US High Yield Research. He is one of the Portfolio Managers on the team that manages the Global High Yield strategies and is also a member of the North American Fixed Income Leadership team. George joined abrdn in 2009 as a Credit Analyst and joined the portfolio management group in 2011. Prior to joining abrdn, George worked at MFS Investment Management in Boston and Citigroup in New York. He earned a BA in English from the University of Vermont and is a CFA Charterholder. |
(a)(2) OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS.
The following chart summarizes information regarding other accounts for which each portfolio manager has day-to-day management responsibilities. Accounts are grouped into the following three categories: (1) registered investment companies; (2) other pooled investment vehicles; and (3) other accounts. To the extent that any of these accounts pay advisory fees that are based on account performance (“performance-based fees”), information on those accounts is provided separately. The figures in the chart below for the category of “registered investment companies” include the Fund. The “Other Accounts Managed” represents the accounts managed by the teams of which the portfolio manager is a member. The information in the table below is as of October 31, 2022
Name of Portfolio Manager | Type of Accounts | Other Accounts Managed | Total Assets ($M) | Number of Accounts Managed for Which Advisory Fee is Based on Performance | Total Assets for Which Advisory Fee is Based on Performance ($M) | |||||||||||
Adam Tabor1 | Registered Investment Companies | 1 | $ | 289.95 | 0 | $ | 0 | |||||||||
Pooled Investment Vehicles | 4 | $ | 691.95 | 0 | $ | 0 | ||||||||||
Other Accounts | 2 | $ | 111.39 | 0 | $ | 0 | ||||||||||
Ben Pakenham2 | Registered Investment Companies | 1 | $ | 289.95 | 0 | $ | 0 | |||||||||
Pooled Investment Vehicles | 4 | $ | 691.95 | 0 | $ | 0 | ||||||||||
Other Accounts | 2 | $ | 111.39 | 0 | $ | 0 | ||||||||||
Matthew Kence1 | Registered Investment Companies | 2 | $ | 393.43 | 0 | $ | 0 | |||||||||
Pooled Investment Vehicles | 5 | $ | 1,433.54 | 0 | $ | 0 | ||||||||||
Other Accounts | 3 | $ | 378.01 | 0 | $ | 0 | ||||||||||
George Westervelt2 | Registered Investment Companies | 2 | $ | 393.43 | 0 | $ | 0 | |||||||||
Pooled Investment Vehicles | 5 | $ | 1,433.54 | 0 | $ | 0 | ||||||||||
Other Accounts | 3 | $ | 378.01 | 0 | $ | 0 |
1 Includes accounts managed by the Euro High Yield and Global Leverage Loans teams, of which the portfolio manager is a member.
2 Includes accounts managed by the US High Yield, Global High Yield, US Global Credit, Euro High Yield and Global Leverage Loans teams, of which the portfolio manager is a member.
POTENTIAL CONFLICTS OF INTEREST
The Adviser and its affiliates (collectively referred to herein as “abrdn”) serve as investment advisers for multiple clients, including the Registrant and other investment companies registered under the 1940 Act and private funds (such clients are also referred to below as “accounts”). The portfolio managers’ management of “other accounts” may give rise to potential conflicts of interest in connection with their management of the Registrant’s investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same investment objective as the Registrant. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio manager could favor one account over another. However, the Adviser believes that these risks are mitigated by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential conflicts. In addition, the Adviser has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.
In some cases, another account managed by the same portfolio manager may compensate Aberdeen based on the performance-based fees with qualified clients. The existence of such a performance-based fee may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities.
Another potential conflict could include instances in which securities considered as investments for the Registrant also may be appropriate for other investment accounts managed by the Adviser or its affiliates. Whenever decisions are made to buy or sell securities for the Registrant and one or more of the other accounts simultaneously, the Adviser may aggregate the purchases and sales of the securities and will allocate the securities transactions in a manner that it believes to be equitable under the circumstances. As a result of the allocations, there may be instances where the Registrant will not participate in a transaction that is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect on the price or amount of the securities available to the Registrant from time to time, it is the opinion of the Adviser that the benefits from the policies outweigh any disadvantage that may arise from exposure to simultaneous transactions. The Registrant has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies will detect each and every situation in which a conflict arises.
With respect to non-discretionary model delivery accounts (including UMA accounts) and discretionary SMA accounts, abrdn Inc. will utilize a third party service provider to deliver model portfolio recommendations and model changes to the Sponsors. abrdn Inc. seeks to treat clients fairly and equitably over time, by delivering model changes to our service provider and investment instructions for our other discretionary accounts to our trading desk, simultaneously or approximately at the same time. The service provider will then deliver the model changes to each Sponsor on a when-traded, randomized full rotation schedule. All Sponsors will be included in the rotation schedule, including SMA and UMA.
UMA Sponsors will be responsible for determining how and whether to implement the model portfolio or model changes and implementation of any client specific investment restrictions. The Sponsors are solely responsible for determining the suitability of the model portfolio for each model delivery client, executing trades and seeking best execution for such clients.
As it relates to SMA accounts, abrdn Inc. will be responsible for managing the account on the basis of each client’s financial situation and objectives, the day to day investment decisions, best execution, accepting or rejecting client specific investment restrictions and performance. The SMA Sponsors will collect suitability information and will provide a summary questionnaire for our review and approval or rejection. For dual contract SMAs, abrdn Inc. will collect a suitability assessment from the client, along with the Sponsor suitability assessment. Our third party service provider will monitor client specific investment restrictions on a day to day basis. For SMA accounts, model trades will be traded by the Sponsor or may be executed through a “step-out transaction,”- or traded away- from the client’s Sponsor if doing so is consistent with abrdn’s obligation to obtain best execution. When placing trades through Sponsor Firms (instead of stepping them out), we will generally aggregate orders where it is possible and in the client’s best interests. In the event we are not comfortable that a Sponsor can obtain best execution for a specific security and trading away is infeasible, we may exclude the security from the model.
Trading costs are not covered by the Wrap Program fee and may result in additional costs to the client. In some instances, step-out trades are executed without any additional commission, mark-up, or mark-down, but in many instances, the executing broker-dealer may impose a commission or a mark-up or mark-down on the trade. Typically, the executing broker will embed the added costs into the price of the trade execution, making it difficult to determine and disclose the exact added cost to clients. In this instance, these additional trading costs will be reflected in the price received for the security, not as a separate commission, on trade confirmations or on account statements. In determining best execution for SMA accounts, abrdn Inc. takes into consideration that the client will not pay additional trading costs or commission if executing with the Sponsor.
While UMA accounts are invested in the same strategies as and may perform similarly to SMA accounts, there are expected to be performance differences between them. There will be performance dispersions between UMAs and other types of accounts because abrdn does not have discretion over trading and there may be client specific restrictions for SMA accounts.
abrdn may have already commenced trading for its discretionary client accounts before the model delivery accounts have executed abrdn's recommendations. In this event, trades placed by the model delivery clients may be subject to price movements, particularly with large orders or where securities are thinly traded, that may result in model delivery clients receiving less favorable prices than our discretionary clients. abrdn has no discretion over transactions executed by model delivery clients and is unable to control the market impact of those transactions.
Timing delays or other operational factors associated with the implementation of trades may result in non-discretionary and model delivery clients receiving materially different prices relative to other client accounts. In addition, the constitution and weights of stocks within model portfolios may not always be exactly aligned with similar discretionary accounts. This may create performance dispersions within accounts with the same or similar investment mandate.
(a)(3)
DESCRIPTION OF COMPENSATION STRUCTURE
abrdn’s remuneration policies are designed to support its business strategy as a leading international asset manager. The objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for abrdn’s clients and shareholders. abrdn operates in a highly competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.
abrdn’s policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The bonus is a single, fully discretionary variable pay award. The aggregate value of awards in any year is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards, which are payable to all members of staff, are determined by a rigorous assessment of achievement against defined objectives.
The variable pay award is composed of a mixture of cash and a deferred award, the portion of which varies based on the size of the award. Deferred awards are by default abrdn plc shares, with an option to put up to 50% of the deferred award into funds managed by abrdn. Overall compensation packages are designed to be competitive relative to the investment management industry.
Base Salary
abrdn’s policy is to pay a fair salary commensurate with the individual’s role, responsibilities and experience, and having regard to the market rates being offered for similar roles in the asset management sector and other comparable companies. Any increase is generally to reflect inflation and is applied in a manner consistent with other abrdn employees; any other increases must be justified by reference to promotion or changes in responsibilities.
Annual Bonus
The Remuneration Committee determines the key performance indicators that will be applied in considering the overall size of the bonus pool. In line with practices amongst other asset management companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by the Remuneration Committee.
abrdn has a deferral policy which is intended to assist in the retention of talent and to create additional alignment of executives’ interests with abrdn’s sustained performance and, in respect of the deferral into funds managed by abrdn, to align the interest of portfolio managers with our clients.
Staff performance is reviewed formally at least once a year. The review process evaluates the various aspects that the individual has contributed to abrdn, and specifically, in the case of portfolio managers, to the relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to presenting the team externally are also evaluated.
In the calculation of a portfolio management team’s bonus, abrdn takes into consideration investment matters (which include the performance of funds, adherence to the company investment process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations through key performance indicator scorecards. To the extent performance is factored in, such performance is not judged against any specific benchmark and is evaluated over the period of a year - January to December. The pre- or after-tax performance of an individual account is not considered in the determination of a portfolio manager’s discretionary bonus; rather the review process evaluates the overall performance of the team for all of the accounts the team manages.
Portfolio manager performance on investment matters is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination of the team’s and individual’s performance is considered and evaluated.
Although performance is not a substantial portion of a portfolio manager’s compensation, abrdn also recognizes that fund performance can often be driven by factors outside one’s control, such as (irrational) markets, and as such pays attention to the effort by portfolio managers to ensure integrity of our core process by sticking to disciplines and processes set, regardless of momentum and ‘hot’ themes. Short-terming is thus discouraged and trading-oriented managers will thus find it difficult to thrive in the abrdn environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would be identified via abrdn’s dynamic compliance monitoring system.
In rendering investment management services, the Adviser may use the resources of additional investment adviser subsidiaries of abrdn plc. These affiliates have entered into a memorandum of understanding (“MOU”) pursuant to which investment professionals from each affiliate may render portfolio management, research or trading services to abrdn clients. Each investment professional who renders portfolio management, research or trading services under a MOU or personnel sharing arrangement (“Participating Affiliate”) must comply with the provisions of the Advisers Act, the 1940 Act, the Securities Act of 1933, the Exchange Act, and the Employee Retirement Income Security Act of 1974, and the laws of states or countries in which the Adviser does business or has clients. No remuneration is paid by the Fund with respect to the MOU/personnel sharing arrangements.
(a)(4)
Dollar Range of Equity Securities in the Registrant Beneficially Owned by the Portfolio Manager as of October 31, 2022 | ||||
Adam Tabor | None | |||
Ben Pakenham | None | |||
Matthew Kence | None | |||
George Westervelt | None |
(b) Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No such purchases were made by or on behalf of the Registrant during the period covered by the report.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended 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, as amended (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 has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable
Item 13. Exhibits.
(a)(1) | Code of Ethics of the Registrant for the period covered by this report as required pursuant to Item 2 of this Form N-CSR. |
(a)(2) | The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this Form N-CSR. |
(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
(a)(4) | Change in Registrant’s independent public accountant. Not applicable. |
(b) | The certifications of the registrant as required by Rule 30a-2(b) under the Act are exhibits to this Form N-CSR. |
(c) | Proxy Voting Policy of Registrant |
(d) | Proxy Voting Policies and Procedures of Adviser. |
(e) | Consent of Independent Registered Public Accounting Firm. |
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 Income Credit Strategies Fund
By: | /s/ Christian Pittard | |
Christian Pittard, | ||
Principal Executive Officer of | ||
abrdn Income Credit Strategies Fund | ||
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/ Christian Pittard | |
Christian Pittard, | ||
Principal Executive Officer of | ||
abrdn Income Credit Strategies Fund | ||
Date: January 9, 2023 |
By: | /s/ Andrea Melia | |
Andrea Melia, | ||
Principal Financial Officer of | ||
abrdn Income Credit Strategies Fund | ||
Date: January 9, 2023 |