Portfolio of Investments (unaudited)
As of January 31, 2023
As of January 31, 2023
abrdn Income Credit Strategies Fund
Shares or Principal Amount | Value | ||
CORPORATE BONDS—137.1% | |||
ARGENTINA—1.6% | |||
Telecom Argentina SA, 8.00%, 07/18/2026(a)(b) | $ | 3,120,000 | $ 2,956,091 |
CANADA—3.0% | |||
Enerflex Ltd., 9.00%, 10/15/2027(a)(b) | 2,215,000 | 2,256,022 | |
Husky III Holding Ltd., 13.00%, 02/15/2025(a)(b)(c) | 1,495,000 | 1,385,566 | |
Titan Acquisition Ltd. / Titan Co-Borrower LLC, 7.75%, 04/15/2026(a)(b) | 1,875,000 | 1,773,562 | |
Total Canada | 5,415,150 | ||
CHINA—1.0% | |||
China Evergrande Group, 9.50%, 04/11/2022(a)(d)(e) | 3,304,000 | 339,334 | |
Kaisa Group Holdings Ltd., 9.38%, 06/30/2024(a)(b)(d) | 7,510,000 | 1,426,900 | |
Total China | 1,766,234 | ||
DENMARK—2.2% | |||
DKT Finance ApS, 9.38%, 06/17/2023(a)(b) | 4,000,000 | 4,001,120 | |
FRANCE—11.5% | |||
Banijay Group SAS REGS, 6.50%, 03/01/2026(a)(b) | EUR | 2,000,000 | 2,098,853 |
CAB SELAS, 3.38%, 02/01/2028(a)(b) | 3,400,000 | 3,081,563 | |
Electricite de France SA, (fixed rate to 01/22/2026, variable rate thereafter), 5.00%, 01/22/2026(a)(f) | 3,200,000 | 3,277,697 | |
Iliad Holding SASU, 7.00%, 10/15/2028(a)(b) | $ | 1,568,000 | 1,472,634 |
Loxam SAS, 5.75%, 07/15/2027(a)(b) | EUR | 3,500,000 | 3,415,125 |
Mobilux Finance SAS, 4.25%, 07/15/2028(a)(b) | 3,000,000 | 2,552,085 | |
Societe Generale SA, 9.38%, 11/22/2027(a)(f) | $ | 4,420,000 | 4,745,975 |
Total France | 20,643,932 | ||
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 | 516,795 | |
GERMANY—8.0% | |||
Cheplapharm Arzneimittel GmbH | |||
4.38%, 01/15/2028(a)(b) | EUR | 2,771,000 | 2,751,328 |
5.50%, 01/15/2028(a)(b) | $ | 529,000 | 472,164 |
CT Investment GmbH, 5.50%, 04/15/2026(a)(b) | EUR | 1,645,000 | 1,587,690 |
HT Troplast GmbH, 9.25%, 07/15/2025(a)(b) | 3,865,000 | 4,054,772 | |
IHO Verwaltungs GmbH, 3.88%, 05/15/2027(a)(b)(c) | 1,700,000 | 1,621,757 | |
PrestigeBidCo GmbH, 3 mo. Euribor + 6.000%, 8.29%, 07/15/2027(a)(b)(g) | 2,176,000 | 2,226,081 | |
Standard Profil Automotive GmbH, 6.25%, 04/30/2026(a)(b) | 2,500,000 | 1,669,319 | |
Total Germany | 14,383,111 | ||
GIBRALTAR—1.6% | |||
888 Acquisitions Ltd., 7.56%, 07/15/2027(a)(b) | 3,100,000 | 2,915,099 |
Shares or Principal Amount | Value | ||
IRELAND—1.3% | |||
Cimpress PLC, 7.00%, 06/15/2026(a)(b) | $ | 3,432,000 | $ 2,382,818 |
ITALY—2.9% | |||
Gamma Bondco Sarl, 8.13%, 11/15/2026(a)(b)(c) | EUR | 4,000,000 | 4,137,329 |
Lottomatica SpA, 6.25%, 07/15/2025(a)(b) | 1,000,000 | 1,076,279 | |
Total Italy | 5,213,608 | ||
LUXEMBOURG—24.7% | |||
Albion Financing 2Sarl, 8.75%, 04/15/2027(a)(b) | $ | 6,485,000 | 5,496,037 |
Altice Finco SA, 4.75%, 01/15/2028(a)(b) | EUR | 5,000,000 | 4,171,668 |
Altice France Holding SA | |||
10.50%, 05/15/2027(a)(b) | $ | 2,700,000 | 2,318,625 |
6.00%, 02/15/2028(a)(b) | 10,000,000 | 6,747,114 | |
Cidron Aida Finco Sarl | |||
5.00%, 04/01/2028(a)(b) | EUR | 2,000,000 | 1,954,370 |
6.25%, 04/01/2028(a)(b) | GBP | 2,993,000 | 3,113,369 |
Cirsa Finance International Sarl, 10.38%, 11/30/2027(a)(b) | EUR | 1,590,000 | 1,811,696 |
Cullinan Holdco Scsp, 4.63%, 10/15/2026(a)(b) | 2,031,000 | 1,972,779 | |
Garfunkelux Holdco 3 SA | |||
7.75%, 11/01/2025(a)(b) | GBP | 2,885,000 | 2,694,254 |
7.75%, 11/01/2025(a)(b) | 2,032,000 | 1,897,651 | |
Herens Midco Sarl, 5.25%, 05/15/2029(a)(b) | EUR | 2,000,000 | 1,475,807 |
HSE Finance Sarl, 5.63%, 10/15/2026(a)(b) | 625,000 | 358,395 | |
LHMC Finco 2 Sarl PIK, 7.25%, 10/02/2025(a)(b)(c) | 256,281 | 255,966 | |
Monitchem HoldCo 2 SA | |||
9.50%, 09/15/2026(a)(b) | 2,000,000 | 2,060,150 | |
9.50%, 09/15/2026(a)(b) | 2,250,000 | 2,317,669 | |
Summer BC Holdco A Sarl, 9.25%, 10/31/2027(a)(b) | 6,397,474 | 5,641,561 | |
Total Luxembourg | 44,287,111 | ||
MAURITIUS—0.7% | |||
Axian Telecom, 7.38%, 02/16/2027(a)(b) | $ | 1,447,000 | 1,333,049 |
MEXICO—1.3% | |||
Braskem Idesa SAPI, 6.99%, 02/20/2032(a)(b) | 1,079,000 | 799,107 | |
Sixsigma Networks Mexico SA de CV, 7.50%, 05/02/2025(a)(b) | 1,500,000 | 1,398,750 | |
Unifin Financiera SAB de CV | |||
(fixed rate to 01/29/2025, variable rate thereafter), 8.88%, 01/29/2025(a)(d)(e)(f) | 2,000,000 | 18,440 | |
8.38%, 01/27/2028(a)(b)(d)(e) | 3,000,000 | 118,200 | |
Total Mexico | 2,334,497 | ||
NETHERLANDS—8.0% | |||
Nobel Bidco BV, 3.13%, 06/15/2028(a)(b) | EUR | 3,300,000 | 2,535,856 |
Samvardhana Motherson Automotive Systems Group BV, 1.80%, 07/06/2024(a) | 963,000 | 994,580 | |
Stichting AK Rabobank Certificaten, 6.50%, 12/29/2049(a)(f) | 5,000,000 | 5,428,957 |
See accompanying Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (continued)
As of January 31, 2023
As of January 31, 2023
abrdn Income Credit Strategies Fund
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
NETHERLANDS (continued) | |||
Summer BidCo BV | |||
9.00%, 11/15/2025(a)(b)(c) | EUR | 2,914,673 | $ 2,372,992 |
9.00%, 11/15/2025(a)(b)(c) | 3,769,044 | 3,057,198 | |
Total Netherlands | 14,389,583 | ||
NIGERIA—1.4% | |||
IHS Netherlands Holdco BV, 8.00%, 09/18/2027(a)(b) | $ | 2,860,000 | 2,577,718 |
PORTUGAL—1.8% | |||
Novo Banco SA, (fixed rate to 07/06/2023, variable rate thereafter), 8.50%, 07/06/2028(a)(b) | EUR | 3,000,000 | 3,162,303 |
REPUBLIC OF IRELAND—2.9% | |||
Virgin Media Vendor Financing Notes III DAC, 4.88%, 07/15/2028(a)(b) | GBP | 5,000,000 | 5,154,852 |
SPAIN—2.9% | |||
Cirsa Finance International Sarl, 6.25%, 12/20/2023(a)(b) | EUR | 1,496,227 | 1,618,491 |
Telefonica Europe BV, 2.38%, 02/12/2029(a)(f) | 4,100,000 | 3,543,566 | |
Total Spain | 5,162,057 | ||
SWEDEN—4.0% | |||
DDM Debt AB, 9.00%, 04/19/2026(a)(b) | 6,400,000 | 4,035,502 | |
Intrum AB, 3.50%, 07/15/2026(a)(b) | 3,200,000 | 3,052,718 | |
Total Sweden | 7,088,220 | ||
SWITZERLAND—1.3% | |||
Credit Suisse AG, 7.50%, 02/15/2028 | $ | 2,223,000 | 2,332,539 |
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 | 924,020 | |
UNITED ARAB EMIRATES—0.1% | |||
Emirates Reit Sukuk II Ltd., 9.50%, 12/12/2024(a) | 190,000 | 177,175 | |
UNITED KINGDOM—21.3% | |||
BCP V Modular Services Finance PLC, 6.75%, 11/30/2029(a)(b) | EUR | 2,700,000 | 2,326,230 |
Bellis Acquisition Co. PLC, 4.50%, 02/16/2026(a)(b) | GBP | 2,800,000 | 2,916,729 |
eG Global Finance PLC, 6.25%, 10/30/2025(a)(b) | EUR | 2,000,000 | 1,938,998 |
EnQuest PLC | |||
7.00%, 10/15/2023(a)(c) | GBP | 639,725 | 784,016 |
11.63%, 11/01/2027(a)(b) | $ | 1,950,000 | 1,916,265 |
Galaxy Finco Ltd., 9.25%, 07/31/2027(a)(b) | GBP | 6,300,000 | 6,485,405 |
Intu Properties PLC, 11.00%, 12/04/2024(e)(h) | 3,795,706 | 4,298,153 | |
Ithaca Energy North Sea PLC, 9.00%, 07/15/2026(a)(b) | $ | 2,636,000 | 2,589,376 |
Jaguar Land Rover Automotive PLC | |||
4.50%, 01/15/2026(a)(b) | EUR | 1,000,000 | 1,001,004 |
4.50%, 10/01/2027(a)(b) | $ | 1,700,000 | 1,413,431 |
Jerrold Finco PLC, 4.88%, 01/15/2026(a)(b) | GBP | 2,900,000 | 3,125,474 |
Punch Finance PLC, 6.13%, 06/30/2026(a)(b) | 2,740,000 | 2,946,298 |
Shares or Principal Amount | Value | ||
Sherwood Financing PLC, 6.00%, 11/15/2026(a)(b) | GBP | 3,500,000 | $ 3,451,979 |
Stonegate Pub Co. Financing 2019 PLC, 8.00%, 07/13/2025(a)(b) | 2,000,000 | 2,262,279 | |
TalkTalk Telecom Group Ltd., 3.88%, 02/20/2025(a)(b) | 766,000 | 779,099 | |
Total United Kingdom | 38,234,736 | ||
UNITED STATES—31.1% | |||
Adams Homes, Inc., 7.50%, 02/15/2025(a)(b) | $ | 2,023,000 | 1,739,905 |
Affinity Gaming, 6.88%, 12/15/2027(a)(b) | 2,139,000 | 1,914,940 | |
Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc., 4.75%, 07/15/2027(a)(b) | GBP | 955,000 | 918,425 |
ASP Unifrax Holdings, Inc., 7.50%, 09/30/2029(a)(b) | $ | 2,162,000 | 1,556,858 |
Banff Merger Sub, Inc. | |||
8.38%, 09/01/2026(a)(b) | EUR | 2,100,000 | 2,066,102 |
8.38%, 09/01/2026(a)(b) | 2,400,000 | 2,361,259 | |
Carnival Corp. | |||
10.13%, 02/01/2026(a)(b) | 236,000 | 266,748 | |
7.63%, 03/01/2026(a)(b) | $ | 324,000 | 294,840 |
Chart Industries, Inc., 9.50%, 01/01/2031(a)(b) | 603,000 | 629,224 | |
Consensus Cloud Solutions, Inc. | |||
6.00%, 10/15/2026(a)(b) | 913,000 | 872,502 | |
6.50%, 10/15/2028(a)(b) | 2,576,000 | 2,411,677 | |
Cornerstone Building Brands, Inc., 6.13%, 01/15/2029(a)(b) | 4,220,000 | 3,161,286 | |
CSC Holdings LLC, 7.50%, 04/01/2028(a)(b) | 4,000,000 | 2,925,040 | |
Encore Capital Group, Inc., 5.38%, 02/15/2026(a)(b) | GBP | 1,500,000 | 1,673,593 |
Ford Motor Credit Co. LLC, 4.54%, 03/06/2025 | 2,700,000 | 3,212,189 | |
Frontier Communications Holdings LLC | |||
6.00%, 01/15/2030(a)(b) | $ | 731,000 | 600,465 |
8.75%, 05/15/2030(a)(b) | 1,306,000 | 1,353,343 | |
Goodyear Europe BV | |||
2.75%, 08/15/2028(a)(b) | EUR | 2,000,000 | 1,747,920 |
2.75%, 08/15/2028(a)(b) | 1,019,000 | 890,565 | |
ITT Holdings LLC, 6.50%, 08/01/2029(a)(b) | $ | 3,825,000 | 3,322,969 |
MajorDrive Holdings IV LLC, 6.38%, 06/01/2029(a)(b) | 3,506,000 | 2,770,266 | |
McAfee Corp., 7.38%, 02/15/2030(a)(b) | 2,715,000 | 2,255,072 | |
Moss Creek Resources Holdings, Inc. | |||
7.50%, 01/15/2026(a)(b) | 2,567,000 | 2,370,368 | |
10.50%, 05/15/2027(a)(b) | 548,000 | 529,132 | |
NCL Corp. Ltd. | |||
5.88%, 03/15/2026(a)(b) | 721,000 | 623,651 | |
7.75%, 02/15/2029(a)(b) | 785,000 | 675,045 | |
NCL Finance Ltd., 6.13%, 03/15/2028(a)(b) | 1,803,000 | 1,464,938 | |
Photo Holdings Merger Sub, Inc., 8.50%, 10/01/2026(a)(b) | 2,224,000 | 1,112,000 | |
Sabre GLBL, Inc., 11.25%, 12/15/2027(a)(b) | 599,000 | 634,940 | |
Staples, Inc., 10.75%, 04/15/2027(a)(b) | 4,205,000 | 3,185,287 | |
Viking Cruises Ltd., 5.88%, 09/15/2027(a)(b) | 2,870,000 | 2,444,609 |
See accompanying Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (continued)
As of January 31, 2023
As of January 31, 2023
abrdn Income Credit Strategies Fund
Shares or Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
UNITED STATES (continued) | |||
Weatherford International Ltd. | |||
11.00%, 12/01/2024(a)(b) | $ | 52,000 | $ 53,430 |
8.63%, 04/30/2030(a)(b) | 3,687,000 | 3,721,695 | |
Total United States | 55,760,283 | ||
ZAMBIA—1.7% | |||
First Quantum Minerals Ltd. | |||
6.50%, 03/01/2024(a)(b) | 1,794,000 | 1,791,578 | |
6.88%, 10/15/2027(a)(b) | 1,256,000 | 1,217,535 | |
Total Zambia | 3,009,113 | ||
Total Corporate Bonds | 246,121,214 | ||
BANK LOANS—3.0% | |||
UNITED KINGDOM—3.0% | |||
Impala Bidco 0 Ltd. GBP Term Loan, 7.44%, 06/08/2028 | GBP | 1,000,000 | 1,142,441 |
Constellation Automotive Ltd. GBP 2nd Lien Term Loan B, 5.70%, 07/27/2029(e) | 2,000,000 | 1,003,885 | |
EG Finco Ltd. 2021 EUR 2nd Lien Term Loan, 8.70%, 04/30/2027 | EUR | 3,500,000 | 3,291,347 |
Total United Kingdom | 5,437,673 | ||
Total Bank Loans | 5,437,673 | ||
COMMON STOCKS—0.2% | |||
UNITED STATES—0.2% | |||
California Resources Corp. | 9,723 | 415,464 | |
Total Common Stocks | 415,464 | ||
WARRANTS—0.1% | |||
UNITED STATES—0.1% | |||
California Resources Corp.(i) | 22,363 | 244,875 | |
Total Warrants | 244,875 | ||
SHORT-TERM INVESTMENT—13.5% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.18%(j) | 24,153,043 | 24,153,043 | |
Total Short-Term Investment | 24,153,043 | ||
Total Investments (Cost $323,323,103)—153.9% | 276,372,269 | ||
Liabilities in Excess of Other Assets—(53.9%) | (96,769,829) | ||
Net Assets—100.0% | $179,602,440 |
(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) | Payment-in-kind security for which part of the income earned may be paid as additional principal. |
(d) | Security is in default. |
(e) | Illiquid security. |
(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 January 31, 2023. |
(h) | Level 3 security. See Note 1(a) of the accompanying Notes to Portfolio of Investments. |
(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 January 31, 2023. |
EUR | Euro Currency |
GBP | British Pound Sterling |
PIK | Payment-In-Kind |
PLC | Public Limited Company |
USD | U.S. Dollar |
At January 31, 2023, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
British Pound/United States Dollar | ||||||||
02/21/2023 | Morgan Stanley & Co. | GBP | 1,687,665 | USD | 2,071,941 | $2,081,501 | $9,560 | |
Euro/United States Dollar | ||||||||
02/21/2023 | Morgan Stanley & Co. | EUR | 585,443 | USD | 635,169 | 637,262 | 2,093 | |
02/21/2023 | Morgan Stanley & Co. | EUR | 1,980,861 | USD | 2,166,272 | 2,156,194 | (10,078) | |
02/21/2023 | UBS AG | EUR | 11,539,744 | USD | 12,492,042 | 12,561,166 | 69,124 | |
$17,436,123 | $70,699 |
See accompanying Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (concluded)
As of January 31, 2023
As of January 31, 2023
abrdn Income Credit Strategies Fund
Sale Contracts Settlement Date | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/British Pound | ||||||||
02/21/2023 | Goldman Sachs & Co. | USD | 267,160 | GBP | 215,056 | $265,242 | $1,918 | |
02/21/2023 | Morgan Stanley & Co. | USD | 255,909 | GBP | 210,029 | 259,041 | (3,132) | |
02/21/2023 | Royal Bank of Canada | USD | 49,504,281 | GBP | 40,819,790 | 50,345,526 | (841,245) | |
United States Dollar/Euro | ||||||||
02/21/2023 | Citibank N.A. | USD | 907,082 | EUR | 836,722 | 910,783 | (3,701) | |
02/21/2023 | Royal Bank of Canada | USD | 119,975,392 | EUR | 111,405,168 | 121,266,021 | (1,290,629) | |
$173,046,613 | $(2,136,789) | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $82,695 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(2,148,785) |
See accompanying Notes to Portfolio of Investments.
Notes to Portfolio of Investments
January 31, 2023 (unaudited)
January 31, 2023 (unaudited)
1. Summary of Significant Accounting Policies
a. Security Valuation:
The Fund value their securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Funds' Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board of Trustees (the "Board") designated abrdn Investments Limited (formerly, Aberdeen Asset Managers Limited) (the "Adviser") as the valuation designee ("Valuation Designee") for the Funds to perform the fair value determinations relating to Fund investments for which market quotations are not readily available.
Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size and the strategies employed by the Valuation Designee generally trade in round lot sizes. In certain circumstances, some trades may occur in smaller “odd lot” sizes which may be effected at lower, or higher, prices than institutional round lot trades. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.
Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share net asset value (“NAV”). Registered investment companies are valued at their net asset value as reported by such company. Generally, these investment types are categorized as Level 1 investments.
Senior loans are valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institutional-size trading in similar groups of securities and other market data.
Derivative instruments are valued at fair value. Exchange-traded futures are generally Level 1 investments and centrally cleared swaps and forwards are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12- month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). When market quotations or exchange rates are not readily available, or if the Adviser concludes that such market quotations do not accurately reflect fair value, the fair value of the Fund’s assets are determined in good faith in accordance with the Valuation Procedures.
In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. Under normal circumstances the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). A security that has been fair valued by the Adviser may be classified as Level 2 or Level 3 depending on the nature of the inputs.
5 |