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: | 811-04611 | |
Exact name of registrant as specified in charter: | abrdn Asia-Pacific Income Fund, Inc. | |
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 | -27.70% |
Market Price2 | -37.59% |
Blended Benchmark4 | -16.68% |
NAV | Closing Market Price | Premium(+)/ Discount(-) | |
10/31/2022 | $2.85 | $2.37 | -16.84% |
10/31/2021 | $4.38 | $4.22 | -3.70% |
1 | Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. |
2 | Assuming the reinvestment of dividends and distributions. |
3 | The Fund’s total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments. |
4 | Blended Benchmark as defined in Total Investment Return section on Page 6. |
abrdn Asia-Pacific Income Fund, Inc. | 1 |
Amount ($ in millions) | Maturity | |
Revolving Credit Facility | $65 | August 2, 2023 |
10-Year Series A Mandatory Redeemable Preferred Shares | $50 | June 27, 2023 |
15-Year Series C Senior Secured Notes | $50 | February 8, 2032 |
15-Year Series D Senior Secured Notes | $100 | August 10, 2032 |
15-Year Series E Senior Secured Notes | $100 | June 19, 2034 |
* | S&P’s ratings are expressed as letter grades that range from ‘AAA’ to ‘D’ to communicate the agency’s opinion of relative level of credit risk. Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The investment grade category is a rating from ‘AAA’ to ‘BBB-’. |
** | Moody’s is an independent, unaffiliated research company that rates fixed income securities. Moody’s assigns ratings on the basis of risk and the borrower’s ability to make interest payments. Typically, securities are assigned a rating from ‘Aaa’ to ‘C’, with ‘Aaa’ being the highest quality and ‘C’ the lowest quality. |
*** | Fitch is an international credit rating agency. Fitch ratings range from AAA (reliable and stable) to D (high risk). |
2 | abrdn Asia-Pacific Income Fund, Inc. |
• | 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.). |
Christian Pittard
President
abrdn Asia-Pacific Income Fund, Inc. | 3 |
1 | The degree to which an asset or investment can be easily converted to cash, by sale at a fair price. Liquidity also describes the amount of cash held in a portfolio. |
4 | abrdn Asia-Pacific Income Fund, Inc. |
2 | If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable it is said to have 'low volatility'. Volatility can be used as a measure of risk. |
3 | Companies whose bonds are rated as 'investment grade' have a lower chance of defaulting on their debt than those rated as 'non-investment grade'. Generally, these bonds are issued by long-established companies with strong balance sheets. Bonds rated BBB or above are known as Investment Grade Bonds. |
4 | 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. |
5 | The Fund’s blended benchmark is composed of 40% Markit iBoxx Asian Local Bond Index; 35% J.P. Morgan Asian Credit Index Diversified; 15% J.P. Morgan GBI Emerging Market Global Diversified Index; and 10% Bloomberg AusBond Composite Index |
6 | 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. |
7 | A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio. |
abrdn Asia-Pacific Income Fund, Inc. | 5 |
8 | A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio. |
9 | Decisions made by a government, usually through its central bank, regarding the amount of money in circulation in the economy. This includes setting official interest rates. |
6 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 7 |
8 | abrdn Asia-Pacific Income Fund, Inc. |
1 Year | 3 Years | 5 Years | 10 Years | |
Net Asset Value (NAV) | -27.70% | -8.72% | -3.91% | -1.75% |
Market Price | -37.59% | -10.11% | -5.96% | -3.71% |
Blended Benchmark* | -16.68% | -4.26% | -0.86% | 0.15% |
Bloomberg Asian-Pacific Aggregate Index1 | -19.42% | -6.69% | -2.48% | -3.34% |
* | The blended benchmark is summarized in the table below: |
Weight | |
Bloomberg AusBond Composite Index2 | 10.0% |
Markit iBoxx Asian Local Bond Index3 | 40.0% |
J.P. Morgan Asian Credit Diversified Index4 | 35.0% |
J.P. Morgan EMBI Global Diversified Index5 | 15.0% |
1 | The Bloomberg Asian-Pacific Aggregate Index contains fixed-rate, investment-grade securities denominated in Australian dollar, Chinese yuan, Hong Kong dollar, Indonesian rupiah, Japanese yen, Malaysian ringgit, New Zealand dollar, Singapore dollar, South Korean won and Thai baht. The index is composed primarily of local currency sovereign debt, but also includes government-related, corporate and securitized bonds. |
2 | The Bloomberg AusBond Composite Bond Index includes investment grade fixed interest bonds of all maturities issued in the Australian debt market under Australian law. |
3 | The Markit iBoxx Asia Local Bond Index (“iBoxx ALBI”) is designed to reflect the performance of local currency bonds from 11 Asian local currency bond markets. |
4 | The J.P. Morgan Asian Credit Diversified Index is a variant of the JP Morgan Asia Credit Index (JACI) focuses on reducing concentration risk of the JACI index to any particular market. The JACI is a broad-based securities market index which consists of liquid US dollar-denominated debt securities issued out of Asia ex-Japan region. |
5 | The J.P. Morgan EMBI Global Diversified Index is a comprehensive global local emerging markets index comprising liquid, fixed rate, domestic currency government bonds. |
abrdn Asia-Pacific Income Fund, Inc. | 9 |
10 | abrdn Asia-Pacific Income Fund, Inc. |
Date | AAA/Aaa % | AA/Aa % | A % | BBB/Baa % | BB/Ba* % | B* % | CCC/CC/C* % | NR** % |
October 31, 2022 | 2.4 | 3.9 | 7.3 | 32.1 | 12.3 | 6.2 | 1.5 | 34.3 |
April 30, 2022 | 4.4 | 4.6 | 5.8 | 28.0 | 11.6 | 8.1 | 1.2 | 36.3 |
October 31, 2021 | 7.7 | 2.8 | 5.7 | 26.7 | 11.3 | 9.6 | 0.8 | 35.4 |
* | Below investment grade |
** | Not Rated |
(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 Investment Manager evaluates the credit quality of unrated investments based upon, but not limited to, credit ratings for similar investments. |
Date | Asia (including NZ) % | Australia % | Latin America % | Europe % | Other, < 5 % |
October 31, 2022 | 76.2 | 7.3 | 6.4 | 5.2 | 4.9 |
April 30, 2022 | 74.8 | 11.0 | 5.2 | 4.5 | 4.5 |
October 31, 2021 | 75.0 | 11.6 | 4.5 | 5.0 | 3.9 |
Date | U.S. Dollar* % | Asian Currencies (including NZ Dollar) % | Latin American Currencies % | Australian Dollar % | Other, < 5 % |
October 31, 2022 | 57.2 | 35.2 | 6.4 | 0.9 | 0.3 |
April 30, 2022 | 37.8 | 47.7 | 5.2 | 9.0 | 0.3 |
October 31, 2021 | 38.8 | 46.1 | 4.4 | 10.1 | 0.6 |
* | Includes U.S. Dollar-denominated bonds issued by foreign issuers: 51.8% of the Fund’s total investments on October 31, 2022, 50.7% of the Fund’s total investments on April 30, 2022, and 51.1% of the Fund’s total investments on October 31, 2021. |
abrdn Asia-Pacific Income Fund, Inc. | 11 |
Date | Under 3 Years % | Under 3 Years % | 5 to 10 Years % | 10 Years & Over % |
October 31, 2022 | 24.4 | 16.0 | 39.9 | 19.7 |
April 30, 2022 | 28.0 | 15.9 | 36.3 | 19.8 |
October 31, 2021 | 27.6 | 18.7 | 34.3 | 19.4 |
* | Modified duration is a measure of the sensitivity of the price of a bond to the fluctuations in interest rates. |
12 | abrdn Asia-Pacific Income Fund, Inc. |
Oct–22 | Apr–22 | Oct-21 | ||
Australia | 90 day Bank Bills | 3.09% | 0.70% | 0.08% |
10 yr bond | 3.14% | 1.83% | 0.58% | |
currency local per 1USD | $1.56 | $1.41 | $1.33 | |
South Korea | 90 day commercial paper | 3.96% | 1.72% | 1.12% |
10 yr bond | 4.23% | 3.24% | 2.56% | |
currency local per 1USD | ₩1,424.45 | ₩1,256.00 | ₩1,168.55 | |
Thailand | 3 months deposit rate | 0.55% | 0.38% | 0.38% |
10 yr bond | 3.19% | 2.71% | 1.97% | |
currency local per 1USD | ฿38.06 | ฿34.25 | ฿33.18 | |
Philippines | 90 day T-Bills | 3.75% | 1.25% | 1.21% |
10 yr bond | 7.46% | 6.00% | 4.90% | |
currency local per 1USD | ₱57.95 | ₱52.21 | ₱50.41 | |
Malaysia | 3-month T-Bills | 2.71% | 1.80% | 1.78% |
10 yr bond | 4.37% | 4.38% | 3.58% | |
currency local per 1USD | RM4.73 | RM4.35 | RM4.14 | |
Singapore | 3-month T-Bills | 4.05% | 1.29% | 0.40% |
10 yr bond | 3.43% | 2.53% | 1.84% | |
currency local per 1USD | S$1.42 | S$1.38 | S$1.35 | |
India | 3-month T-Bills | 6.42% | 4.04% | 3.52% |
10 yr bond | 7.45% | 7.14% | 6.39% | |
currency local per 1USD | ₹82.78 | ₹76.44 | ₹74.88 | |
Indonesia | 3 months deposit rate | 3.55% | 3.26% | 3.50% |
10 yr bond | 7.51% | 6.97% | 6.03% | |
currency local per 1USD | Rp15,597.50 | Rp14,497.00 | Rp14,167.50 | |
China Onshore | 3-month Bill Yield | 1.60% | 1.84% | 2.24% |
10 yr bond | 2.64% | 2.84% | 2.97% | |
currency local per 1USD | ¥7.30 | ¥6.59 | ¥6.40 | |
Sri Lanka | 3-month Generic Govt Yield | 31.84% | 20.33% | 7.82% |
10 yr bond | 27.68% | 17.26% | 11.29% | |
currency local per 1USD | Rs365.50 | Rs351.32 | Rs202.00 | |
USD Denominated Bonds | Indonesia (3 months) | 5.88% | 4.01% | 2.20% |
Sri Lanka (3 months) | 43.37% | 24.45% | 16.15% |
abrdn Asia-Pacific Income Fund, Inc. | 13 |
Principal Amount | Value | ||
CORPORATE BONDS—78.8% | |||
AUSTRALIA—6.5% | |||
Australia & New Zealand Banking Group Ltd. | |||
(fixed rate to 06/15/2026, variable rate thereafter), 6.75%, 06/15/2026(a)(b) | $ | 6,000,000 | $ 5,746,245 |
5.91%, 08/12/2032(c) | AUD | 900,000 | 559,083 |
Emeco Pty. Ltd., 6.25%, 07/10/2026(c) | 1,000,000 | 596,793 | |
Macquarie Bank Ltd., 3.62%, 06/03/2030(a)(c) | $ | 6,845,000 | 5,406,685 |
Mineral Resources Ltd., 8.00%, 11/01/2027(a)(c) | 6,850,000 | 6,738,414 | |
National Australia Bank Ltd., 3.50%, 06/09/2025(c) | 2,000,000 | 1,921,760 | |
Qantas Airways Ltd., 5.25%, 09/09/2030(a)(c) | AUD | 2,270,000 | 1,289,774 |
QBE Insurance Group Ltd., (fixed rate to 05/12/2025, variable rate thereafter), 5.88%, 05/12/2025(a)(b) | $ | 4,000,000 | 3,641,412 |
Santos Finance Ltd., 4.13%, 09/14/2027(a)(c) | 9,100,000 | 8,039,771 | |
Transurban Queensland Finance Pty Ltd., 3.25%, 08/05/2031(c) | AUD | 410,000 | 205,228 |
Wesfarmers Ltd., 2.55%, 06/23/2031(a)(c) | 23,600,000 | 11,577,196 | |
Westpac Banking Corp., 4.11%, 04/15/2025(c) | SGD | 250,000 | 176,207 |
Total Australia | 45,898,568 | ||
BAHRAIN—0.4% | |||
Oil & Gas Holding Co. BSCC, 7.50%, 10/25/2027(a)(c) | $ | 2,500,000 | 2,413,775 |
CHINA—11.0% | |||
Central China Real Estate Ltd. | |||
7.25%, 04/24/2023(a)(c) | 200,000 | 59,326 | |
7.65%, 08/27/2023(a)(c) | 1,110,000 | 168,298 | |
7.90%, 11/07/2023(a)(c) | 800,000 | 100,196 | |
7.75%, 05/24/2024(a)(c) | 3,500,000 | 479,127 | |
Central Huijin Investment Ltd., 3.02%, 03/13/2025(c) | CNY | 30,000,000 | 4,167,388 |
China Construction Bank Corp., 3.45%, 08/10/2031(c) | 50,000,000 | 7,009,838 | |
China Evergrande Group, 8.75%, 06/28/2025(a)(c)(d)(e) | $ | 12,500,000 | 453,125 |
China Oil & Gas Group Ltd., 5.50%, 01/25/2023(a)(c) | 1,000,000 | 976,300 | |
CIFI Holdings Group Co. Ltd., 5.95%, 10/20/2025(a)(c)(d) | 1,300,000 | 86,976 | |
CMHI Finance BVI Co. Ltd., (fixed rate to 10/09/2025, variable rate thereafter), 3.88%, 10/09/2025(a)(b)(c) | 3,405,000 | 3,185,378 | |
CNAC HK Finbridge Co. Ltd. | |||
5.13%, 03/14/2028(a)(c) | 3,320,000 | 2,942,725 | |
3.88%, 06/19/2029(a)(c) | 3,600,000 | 2,894,621 | |
Country Garden Holdings Co. Ltd. | |||
7.25%, 04/08/2026(a)(c)(e) | 4,161,000 | 377,755 | |
3.30%, 01/12/2031(a)(c)(e) | 2,522,000 | 179,385 |
Principal Amount | Value | ||
ENN Clean Energy International Investment Ltd., 3.38%, 05/12/2026(a)(c) | $ | 4,526,000 | $ 3,683,053 |
Gansu Provincial Highway Aviation Tourism Investment Group Co. Ltd., 3.25%, 11/03/2023(a)(c) | 3,600,000 | 3,349,800 | |
Geely Automobile Holdings Ltd., (fixed rate to 12/09/2024, variable rate thereafter), 4.00%, 12/09/2024(a)(b)(c) | 3,000,000 | 2,551,515 | |
GLP China Holdings Ltd., 2.95%, 03/29/2026(a)(c) | 3,962,000 | 2,216,840 | |
Huarong Finance II Co. Ltd. | |||
5.50%, 01/16/2025(a)(c) | 6,700,000 | 5,661,500 | |
5.00%, 11/19/2025(a)(c) | 2,400,000 | 1,907,641 | |
Industrial & Commercial Bank of China Ltd. | |||
Series A, 4.15%, 11/16/2030(c) | CNY | 50,000,000 | 7,161,236 |
Series A, 3.28%, 01/20/2032(c) | 30,000,000 | 4,172,855 | |
Kaisa Group Holdings Ltd. | |||
10.88%, 07/23/2023(a)(c)(d)(e) | $ | 4,603,000 | 287,688 |
9.75%, 09/28/2023(a)(c)(d)(e) | 700,000 | 43,627 | |
11.95%, 11/12/2023(a)(c)(d)(e) | 3,941,000 | 246,313 | |
Lenovo Group Ltd., 6.54%, 07/27/2032(a)(c) | 5,600,000 | 4,663,128 | |
Logan Group Co. Ltd. | |||
6.50%, 07/16/2023(a)(c)(d)(e) | 7,800,000 | 569,859 | |
5.25%, 10/19/2025(a)(c)(d)(e) | 7,800,000 | 597,140 | |
New Metro Global Ltd., 4.80%, 12/15/2024(a)(c) | 2,300,000 | 559,590 | |
Shandong Iron And Steel Xinheng International Co. Ltd., 4.80%, 07/28/2024(a)(c) | 2,040,000 | 1,892,100 | |
Shandong Iron And Steel Xinheng International Co., Ltd., 6.50%, 11/05/2023(a)(c) | 3,754,000 | 3,678,920 | |
Shimao Group Holdings Ltd. | |||
6.13%, 02/21/2024(a)(c)(d)(e) | 4,400,000 | 264,000 | |
5.60%, 07/15/2026(a)(c)(d)(e) | 2,800,000 | 126,716 | |
SPIC Luxembourg Latin America Renewable Energy Investment Co. Sarl, 4.65%, 10/30/2023(a)(c) | 2,807,000 | 2,784,853 | |
Sunac China Holdings Ltd. | |||
5.95%, 04/26/2024(a)(c)(d)(e) | 690,000 | 39,769 | |
6.80%, 10/20/2024(a)(c)(d)(e) | 5,714,000 | 329,337 | |
7.00%, 07/09/2025(a)(c)(d)(e) | 1,786,000 | 98,274 | |
Times China Holdings Ltd., 6.20%, 03/22/2026(a)(c)(d)(e) | 7,100,000 | 398,328 | |
Wanda Properties International Co. Ltd., 7.25%, 01/29/2024(a)(c) | 2,000,000 | 830,000 | |
Xiaomi Best Time International Ltd., 2.88%, 07/14/2031(a)(c) | 3,180,000 | 1,998,207 | |
Yuzhou Group Holdings Co. Ltd., 8.30%, 05/27/2025(a)(c)(e) | 7,000,000 | 201,269 |
14 | abrdn Asia-Pacific Income Fund, Inc. |
Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
CHINA (continued) | |||
Zhenro Properties Group Ltd. | |||
7.88%, 04/14/2024(a)(c)(d)(e) | $ | 4,000,000 | $ 77,237 |
7.10%, 09/10/2024(a)(c)(d)(e) | 1,000,000 | 20,041 | |
6.63%, 01/07/2026(a)(c)(d)(e) | 10,457,000 | 313,710 | |
Zhongsheng Group Holdings Ltd., 3.00%, 01/13/2026(a)(c) | 4,156,000 | 3,633,493 | |
Total China | 77,438,477 | ||
GERMANY—0.9% | |||
Landwirtschaftliche Rentenbank, 4.75%, 04/08/2024(f) | AUD | 10,000,000 | 6,464,435 |
HONG KONG—4.3% | |||
AIA Group Ltd., 5.63%, 10/25/2027(c) | $ | 5,000,000 | 4,926,106 |
CAS Capital No. 1 Ltd., (fixed rate to 07/12/2026, variable rate thereafter), 4.00%, 07/12/2026(a)(b)(c) | 7,000,000 | 4,412,800 | |
Far East Horizon Ltd., 4.25%, 10/26/2026(a)(c) | 3,670,000 | 2,723,263 | |
Hutchison Whampoa Finance CI Ltd., 7.50%, 08/01/2027(c) | 15,500,000 | 16,877,950 | |
Hutchison Whampoa International Ltd., 7.45%, 11/24/2033(a)(c) | 980,000 | 1,123,418 | |
Total Hong Kong | 30,063,537 | ||
INDIA—19.6% | |||
Adani Electricity Mumbai Ltd., 3.95%, 02/12/2030(a)(c) | 7,302,000 | 4,835,086 | |
Adani Green Energy UP Ltd. / Prayatna Developers Pvt Ltd. / Parampujya Solar Energy Pvt Ltd., 6.25%, 12/10/2024(a)(c) | 5,230,000 | 4,727,920 | |
Adani Transmission Step-One Ltd. | |||
4.00%, 08/03/2026(a)(c) | 3,050,000 | 2,607,110 | |
4.25%, 05/21/2036(a)(c)(g) | 3,508,750 | 2,560,216 | |
Axis Bank Ltd. | |||
Series 3, 7.60%, 10/20/2023(c) | INR | 200,000,000 | 2,407,504 |
Series 1, 8.85%, 12/05/2024(c) | 500,000,000 | 6,147,087 | |
Axis Bank Ltd./Gift City, (fixed rate to 09/08/2026, variable rate thereafter), 4.10%, 09/08/2026(a)(b) | $ | 10,900,000 | 8,615,270 |
Bharti Airtel International Netherlands BV, 5.35%, 05/20/2024(a)(c) | 378,000 | 374,352 | |
CA Magnum Holdings, 5.38%, 10/31/2026(a)(c) | 800,000 | 670,062 | |
GMR Hyderabad International Airport Ltd. | |||
5.38%, 04/10/2024(a)(c) | 4,173,000 | 3,990,640 | |
4.75%, 02/02/2026(a)(c) | 1,200,000 | 1,047,600 | |
Greenko Wind Projects Mauritius Ltd., 5.50%, 04/06/2025(a)(c) | 8,206,000 | 6,986,150 | |
HDFC Bank Ltd. | |||
(fixed rate to 08/25/2026, variable rate thereafter), 3.70%, 08/25/2026(a)(b) | 7,304,000 | 5,828,592 | |
Series 1, 7.95%, 09/21/2026(c) | INR | 750,000,000 | 9,106,433 |
Principal Amount | Value | ||
Housing Development Finance Corp. Ltd. Series Q003, 7.90%, 08/24/2026(c) | INR | 100,000,000 | $ 1,204,871 |
ICICI Bank Ltd. | |||
7.60%, 10/07/2023(c) | 100,000,000 | 1,204,459 | |
9.15%, 08/06/2024(c) | 250,000,000 | 3,094,138 | |
IIFL Finance Ltd. EMTN, 5.88%, 04/20/2023(a)(c) | $ | 5,732,000 | 5,581,822 |
India Green Power Holdings, 4.00%, 02/22/2027(a)(c)(g) | 7,072,000 | 5,304,332 | |
Indiabulls Housing Finance Ltd., 9.00%, 04/29/2026(c) | INR | 100,000,000 | 1,056,231 |
Indian Railway Finance Corp. Ltd. Series 129, 8.45%, 12/04/2028(c) | 50,000,000 | 635,704 | |
JSW Infrastructure Ltd., 4.95%, 01/21/2029(a)(c) | $ | 3,420,000 | 2,543,842 |
National Highways Authority of India, 7.70%, 09/13/2029(c) | INR | 150,000,000 | 1,827,335 |
NTPC Ltd. | |||
Series 60, 8.05%, 05/05/2026(c) | 50,000,000 | 611,271 | |
Series 61-B, 8.10%, 05/27/2026(c) | 250,000,000 | 3,061,647 | |
Periama Holdings LLC, 5.95%, 04/19/2026(a)(c) | $ | 3,280,000 | 2,661,064 |
Power Finance Corp. Ltd. | |||
Series 125, 8.65%, 12/28/2024(c) | INR | 400,000,000 | 4,921,864 |
Series 130C, 8.39%, 04/19/2025(c) | 250,000,000 | 3,061,717 | |
6.15%, 12/06/2028(a)(c) | $ | 7,112,000 | 6,834,513 |
Power Grid Corp. of India Ltd. | |||
8.13%, 04/25/2027(c) | INR | 150,000,000 | 1,816,437 |
Series LIII, 8.13%, 04/25/2028(c) | 500,000,000 | 6,178,189 | |
REC Ltd. | |||
4.75%, 05/19/2023(a)(c) | $ | 3,689,000 | 3,664,837 |
Series 180A, 8.10%, 06/25/2024(c) | INR | 150,000,000 | 1,825,496 |
Series 123, 9.34%, 08/25/2024(c) | 150,000,000 | 1,860,303 | |
Reliance Industries Ltd., 4.13%, 01/28/2025(a)(c) | $ | 6,200,000 | 5,961,315 |
Shriram Transport Finance Co. Ltd., 4.40%, 03/13/2024(a)(c) | 8,000,000 | 7,447,760 | |
State of Maharashtra India, 7.20%, 08/09/2027(c) | INR | 300,000,000 | 3,591,977 |
UPL Corp. Ltd., 4.63%, 06/16/2030(a)(c) | $ | 3,327,000 | 2,542,150 |
Total India | 138,397,296 | ||
INDONESIA—5.0% | |||
Bank Mandiri Persero Tbk PT, 4.75%, 05/13/2025(a)(c) | 2,198,000 | 2,125,443 | |
Bank Rakyat Indonesia Persero Tbk PT Series OB, 8.25%, 08/24/2024(c) | IDR | 10,000,000,000 | 654,528 |
Bank Tabungan Negara Persero Tbk PT, 4.20%, 01/23/2025(a)(c) | $ | 7,300,000 | 6,245,150 |
FPC Treasury Ltd., 4.50%, 04/16/2023(a)(c) | 5,326,000 | 5,247,708 | |
Hutama Karya Persero PT, 3.75%, 05/11/2030(a)(c)(f) | 3,766,000 | 3,247,734 |
abrdn Asia-Pacific Income Fund, Inc. | 15 |
Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
INDONESIA (continued) | |||
LLPL Capital Pte Ltd., 6.88%, 02/04/2039(a)(c)(g) | $ | 5,225,850 | $ 4,018,830 |
Medco Oak Tree Pte Ltd., 7.38%, 05/14/2026(a)(c) | 4,565,000 | 4,054,123 | |
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara | |||
Series OB, 8.25%, 07/05/2023(c) | IDR | 12,000,000,000 | 783,042 |
6.15%, 05/21/2048(a)(c) | $ | 3,129,000 | 2,464,088 |
Tower Bersama Infrastructure Tbk PT, 2.75%, 01/20/2026(a)(c) | 7,181,000 | 6,049,992 | |
Total Indonesia | 34,890,638 | ||
KAZAKHSTAN—0.8% | |||
Development Bank of Kazakhstan JSC, 10.95%, 05/06/2026(a)(c) | KZT | 3,265,000,000 | 5,446,620 |
KUWAIT—0.9% | |||
MEGlobal Canada ULC, 5.00%, 05/18/2025(a)(c) | $ | 6,759,000 | 6,530,884 |
MACAO—1.5% | |||
MGM China Holdings Ltd., 5.88%, 05/15/2026(a)(c) | 3,500,000 | 2,684,920 | |
Sands China Ltd., 5.63%, 08/08/2025(c) | 4,900,000 | 4,326,504 | |
Wynn Macau Ltd., 5.50%, 10/01/2027(a)(c) | 6,000,000 | 3,868,620 | |
Total Macao | 10,880,044 | ||
MALAYSIA—2.4% | |||
CIMB Group Holdings Bhd, 4.95%, 03/29/2028(c) | MYR | 5,000,000 | 1,065,582 |
DRB-Hicom Bhd IMTN, 5.10%, 12/12/2029(c) | 5,000,000 | 1,028,736 | |
Malayan Banking Bhd, (fixed rate to 09/25/2024, variable rate thereafter) IMTN, 4.08%, 09/25/2024(b)(c)(e) | 5,000,000 | 1,055,351 | |
Pengerang LNG Two Sdn Bhd | |||
IMTN, 2.86%, 10/20/2028(c) | 5,000,000 | 960,078 | |
IMTN, 2.92%, 10/19/2029(c) | 5,000,000 | 943,401 | |
Petroleum Sarawak Exploration & Production Sdn Bhd IMTN, 4.10%, 03/19/2031(c) | 10,000,000 | 2,029,586 | |
Petronas Capital Ltd., 3.50%, 04/21/2030(a)(c) | $ | 2,600,000 | 2,309,698 |
Press Metal Aluminium Holdings Bhd IMTN, 4.00%, 08/15/2025(c) | MYR | 5,000,000 | 1,043,708 |
TNB Global Ventures Capital Bhd, 3.24%, 10/19/2026(a)(c) | $ | 7,000,000 | 6,391,980 |
Total Malaysia | 16,828,120 | ||
MEXICO—0.9% | |||
Petroleos Mexicanos, 7.19%, 09/12/2024(a)(c) | MXN | 145,000,000 | 6,628,792 |
NORWAY—0.6% | |||
Kommunalbanken AS, 4.50%, 04/17/2023(a)(c) | AUD | 7,000,000 | 4,496,183 |
Principal Amount | Value | ||
PHILIPPINES—6.3% | |||
AC Energy Finance International Ltd., 5.10%, 11/25/2025(a)(b)(c) | $ | 6,800,000 | $ 5,257,080 |
Globe Telecom, Inc., (fixed rate to 08/02/2026, variable rate thereafter), 4.20%, 08/02/2026(a)(b)(c) | 4,097,000 | 3,464,103 | |
ICTSI Treasury BV, 5.88%, 09/17/2025(a)(c) | 7,000,000 | 6,870,080 | |
Manila Water Co., Inc., 4.38%, 07/30/2030(a)(c) | 11,000,000 | 9,300,500 | |
Megaworld Corp., 4.25%, 04/17/2023(a)(c) | 13,086,000 | 12,885,784 | |
Royal Capital BV, (fixed rate to 05/05/2024, variable rate thereafter), 4.88%, 05/05/2024(a)(b)(c) | 7,000,000 | 6,562,500 | |
Total Philippines | 44,340,047 | ||
REPUBLIC OF KOREA—3.8% | |||
Busan Bank Co. Ltd., 3.63%, 07/25/2026(a)(c) | 11,400,000 | 10,320,064 | |
Hanwha Total Petrochemical Co. Ltd., 3.88%, 01/23/2024(a)(c) | 3,300,000 | 3,228,423 | |
Kookmin Bank, 2.50%, 11/04/2030(a)(c) | 2,000,000 | 1,512,600 | |
Kyobo Life Insurance Co. Ltd., (fixed rate to 06/15/2027, variable rate thereafter), 5.90%, 06/15/2052(a)(c) | 2,155,000 | 1,961,050 | |
Shinhan Bank Co. Ltd., 4.50%, 03/26/2028(a)(c) | 5,900,000 | 5,358,369 | |
SK Hynix, Inc., 2.38%, 01/19/2031(a)(c) | 2,071,000 | 1,492,342 | |
Tongyang Life Insurance Co. Ltd., (fixed rate to 09/22/2025, variable rate thereafter), 5.25%, 09/22/2025(a)(b)(c) | 3,650,000 | 2,947,375 | |
Total Republic of Korea | 26,820,223 | ||
SAUDI ARABIA—0.4% | |||
Saudi Electricity Global Sukuk Co. 3, 5.50%, 04/08/2044(a)(c) | 2,976,000 | 2,752,800 | |
SINGAPORE—2.1% | |||
DBS Group Holdings Ltd. | |||
(fixed rate to 02/27/2025, variable rate thereafter), 3.30%, 02/27/2025(a)(b)(c) | 4,300,000 | 3,771,100 | |
(fixed rate to 12/11/2023, variable rate thereafter), 4.52%, 12/11/2028(a)(c) | 2,400,000 | 2,364,289 | |
GLP Pte Ltd., (fixed rate to 05/17/2026, variable rate thereafter), 4.50%, 05/17/2026(a)(b)(c) | 4,538,000 | 2,042,100 | |
Vena Energy Capital Pte Ltd., 3.13%, 02/26/2025(a)(c) | 7,000,000 | 6,404,998 | |
Total Singapore | 14,582,487 | ||
SOUTH KOREA—0.7% | |||
SK Hynix, Inc. REGS, 2.38%, 01/19/2031(a)(c) | 7,000,000 | 5,044,132 |
16 | abrdn Asia-Pacific Income Fund, Inc. |
Principal Amount | Value | ||
CORPORATE BONDS (continued) | |||
TAIWAN—0.2% | |||
TSMC Arizona Corp., 2.50%, 10/25/2031(c) | $ | 2,191,000 | $ 1,701,733 |
THAILAND—3.7% | |||
Bangkok Bank PCL | |||
9.03%, 03/15/2029(a)(c) | 1,200,000 | 1,311,757 | |
(fixed rate to 09/25/2029, variable rate thereafter), 3.73%, 09/25/2034(a)(c) | 6,900,000 | 5,122,433 | |
GC Treasury Center Co. Ltd., 4.40%, 03/30/2032(a)(c) | 4,209,000 | 3,380,248 | |
Krung Thai Bank PCL, (fixed rate to 03/25/2026, variable rate thereafter), 4.40%, 03/25/2026(a)(b)(c) | 7,000,000 | 5,559,400 | |
Minor International PCL, (fixed rate to 06/29/2023, variable rate thereafter), 3.10%, 06/29/2023(a)(b)(c) | 5,800,000 | 5,626,000 | |
PTTEP Treasury Center Co. Ltd., 3.90%, 12/06/2059(a)(c) | 3,342,000 | 2,028,691 | |
TMBThanachart Bank PCL, (fixed rate to 12/02/2024, variable rate thereafter), 4.90%, 12/02/2024(a)(b)(c) | 3,800,000 | 3,314,279 | |
Total Thailand | 26,342,808 | ||
UNITED ARAB EMIRATES—2.7% | |||
DP World Ltd., 6.85%, 07/02/2037(a)(c) | 2,700,000 | 2,588,749 | |
Esic Sukuk Ltd. EMTN, 3.94%, 07/30/2024(a)(c) | 5,332,000 | 5,022,744 | |
Galaxy Pipeline Assets Bidco Ltd., 2.63%, 03/31/2036(a)(c)(g) | 7,237,000 | 5,496,333 | |
MAF Global Securities Ltd., (fixed rate to 03/20/2026, variable rate thereafter), 6.38%, 03/20/2026(a)(b)(c) | 6,500,000 | 5,959,200 | |
Total United Arab Emirates | 19,067,026 | ||
UNITED KINGDOM—2.9% | |||
HSBC Holdings PLC, (fixed rate to 03/23/2023, variable rate thereafter), 6.25%, 03/23/2023(b) | 6,760,000 | 6,363,188 | |
Standard Chartered PLC | |||
3.95%, 01/11/2023(a)(c) | 6,999,000 | 6,946,150 | |
(fixed rate to 04/02/2023, variable rate thereafter), 7.75%, 04/02/2023(a)(b) | 2,759,000 | 2,726,369 | |
4.05%, 04/12/2026(a)(c) | 5,000,000 | 4,655,000 | |
Total United Kingdom | 20,690,707 | ||
UNITED STATES—0.8% | |||
Hyundai Capital America, 6.38%, 04/08/2030(a)(c) | 5,600,000 | 5,457,046 | |
VIETNAM—0.4% | |||
Mong Duong Finance Holdings BV, 5.13%, 05/07/2029(a)(c)(g) | 4,310,000 | 2,986,183 | |
Total Corporate Bonds | 556,162,561 |
Principal Amount | Value | ||
GOVERNMENT BONDS—66.1% | |||
ANGOLA—1.5% | |||
Angolan Government International Bond, 9.50%, 11/12/2025(a)(c) | $ | 11,000,000 | $ 10,715,980 |
AUSTRALIA—4.3% | |||
Australia Government Bond Series 154, 2.75%, 11/21/2029(a)(c) | AUD | 2,300,000 | 1,392,330 |
New South Wales Treasury Corp. | |||
4.00%, 05/20/2026(a)(c) | 7,500,000 | 4,819,371 | |
3.00%, 02/20/2030(a)(c) | 13,500,000 | 7,949,302 | |
Queensland Treasury Corp. | |||
4.25%, 07/21/2023(a)(c) | 22,000,000 | 14,154,593 | |
3.50%, 08/21/2030(a)(c) | 300,000 | 182,019 | |
Treasury Corp. of Victoria, 2.25%, 11/20/2040(c) | 5,000,000 | 2,147,722 | |
Total Australia | 30,645,337 | ||
BRAZIL—2.6% | |||
Brazil Notas do Tesouro Nacional, 10.00%, 01/01/2029(c) | BRL | 103,000,000 | 18,498,988 |
CHINA—5.9% | |||
China Government Bond | |||
2.68%, 05/21/2030(h) | CNY | 130,000,000 | 17,812,935 |
3.27%, 11/19/2030(h) | 110,000,000 | 15,686,838 | |
3.02%, 05/27/2031(h) | 60,000,000 | 8,428,658 | |
Total China | 41,928,431 | ||
COLOMBIA—0.8% | |||
Colombian TES Series B, 10.00%, 07/24/2024(c) | COP | 28,000,000,000 | 5,448,315 |
HONG KONG—1.7% | |||
Jordan Government International Bond, 7.75%, 01/15/2028(a)(c) | $ | 12,102,000 | 11,686,901 |
INDIA—7.3% | |||
India Government Bond | |||
7.72%, 05/25/2025(c) | INR | 880,000,000 | 10,751,930 |
8.15%, 11/24/2026(c) | 300,000,000 | 3,711,878 | |
6.79%, 05/15/2027(c) | 735,000,000 | 8,662,571 | |
7.17%, 01/08/2028(c) | 550,000,000 | 6,561,430 | |
7.26%, 01/14/2029(c) | 1,340,000,000 | 16,001,812 | |
9.20%, 09/30/2030(c) | 9,590,000 | 126,680 | |
6.19%, 09/16/2034(c) | 500,000,000 | 5,401,839 | |
Total India | 51,218,140 | ||
INDONESIA—16.6% | |||
Indonesia Government International Bond | |||
8.50%, 10/12/2035(a)(c) | $ | 9,880,000 | 11,561,421 |
7.75%, 01/17/2038(a)(c) | 6,000,000 | 6,630,000 | |
5.35%, 02/11/2049(c) | 2,670,000 | 2,346,813 |
abrdn Asia-Pacific Income Fund, Inc. | 17 |
Principal Amount | Value | ||
GOVERNMENT BONDS (continued) | |||
INDONESIA (continued) | |||
Indonesia Treasury Bond | |||
Series FR64, 6.13%, 05/15/2028(c) | IDR | 271,570,000,000 | $ 16,400,756 |
Series FR71, 9.00%, 03/15/2029(c) | 200,000,000,000 | 13,816,573 | |
Series FR78, 8.25%, 05/15/2029(c) | 240,000,000,000 | 16,007,642 | |
Series FR82, 7.00%, 09/15/2030(c) | 65,000,000,000 | 4,035,688 | |
Series FR87, 6.50%, 02/15/2031(c) | 21,000,000,000 | 1,257,146 | |
Series FR73, 8.75%, 05/15/2031(c) | 300,000,000,000 | 20,666,774 | |
Series FR54, 9.50%, 07/15/2031(c) | 16,000,000,000 | 1,153,057 | |
Series FR72, 8.25%, 05/15/2036(c) | 150,000,000,000 | 10,001,218 | |
Series FR79, 8.38%, 04/15/2039(c) | 98,500,000,000 | 6,670,024 | |
Series FR83, 7.50%, 04/15/2040(c) | 44,000,000,000 | 2,776,676 | |
Perusahaan Penerbit SBSN Indonesia III, 4.15%, 03/29/2027(a)(c) | $ | 3,770,000 | 3,581,085 |
Total Indonesia | 116,904,873 | ||
IRAQ—0.4% | |||
Iraq International Bond, 5.80%, 01/15/2028(a)(c)(g) | 3,437,500 | 2,920,266 | |
MALAYSIA—6.5% | |||
Malaysia Government Bond | |||
3.48%, 06/14/2024(c) | MYR | 17,450,000 | 3,692,866 |
Series 0114, 4.18%, 07/15/2024(c) | 20,500,000 | 4,400,526 | |
3.90%, 11/16/2027(c) | 48,300,000 | 10,072,614 | |
Series 0513, 3.73%, 06/15/2028(c) | 17,500,000 | 3,584,894 | |
2.63%, 04/15/2031(c) | 46,000,000 | 8,419,592 | |
3.76%, 05/22/2040(c) | 9,793,000 | 1,788,012 | |
4.70%, 10/15/2042(c) | 16,500,000 | 3,434,708 | |
4.92%, 07/06/2048(c) | 30,500,000 | 6,392,944 | |
4.07%, 06/15/2050(c) | 14,800,000 | 2,707,041 | |
Malaysia Government Investment Issue, 3.45%, 07/15/2036(c) | 8,200,000 | 1,503,803 | |
Total Malaysia | 45,997,000 | ||
MALDIVES—0.2% | |||
Maldives Sukuk Issuance Ltd., 9.88%, 04/08/2026(c) | $ | 2,200,000 | 1,711,222 |
MEXICO—3.1% | |||
Mexican Bonos Series M20, 8.50%, 05/31/2029(c) | MXN | 469,000,000 | 22,153,797 |
MONGOLIA—0.8% | |||
Development Bank of Mongolia LLC, 7.25%, 10/23/2023(c) | $ | 6,200,000 | 5,449,800 |
NIGERIA—1.4% | |||
Nigeria Government International Bond, 8.75%, 01/21/2031(a)(c) | 14,100,000 | 9,926,823 |
Principal Amount | Value | ||
PAKISTAN—2.1% | |||
Pakistan Global Sukuk Programme Co. Ltd., 7.95%, 01/31/2029(a)(c) | $ | 6,245,000 | $ 3,200,563 |
Pakistan Government International Bond | |||
8.25%, 04/15/2024(a)(c) | 7,495,000 | 3,204,112 | |
8.25%, 09/30/2025(a)(c) | 5,209,000 | 1,849,195 | |
6.88%, 12/05/2027(a)(c) | 18,129,000 | 5,630,867 | |
7.38%, 04/08/2031(a)(c) | 2,355,000 | 730,050 | |
Total Pakistan | 14,614,787 | ||
PHILIPPINES—2.1% | |||
Philippine Government Bond, 6.75%, 09/15/2032(c) | PHP | 481,500,000 | 7,939,662 |
Philippine Government International Bond, 4.20%, 03/29/2047(c) | $ | 2,570,000 | 1,996,190 |
Philippines Government Bonds, 8.00%, 09/30/2035(c) | PHP | 260,310,000 | 4,648,917 |
Total Philippines | 14,584,769 | ||
REPUBLIC OF KOREA—2.3% | |||
Korea Treasury Bond, 2.50%, 03/10/2052(c) | KRW | 31,500,000,000 | 16,132,312 |
SINGAPORE—1.8% | |||
Singapore Government Bond, 1.63%, 07/01/2031(c) | SGD | 21,000,000 | 12,839,432 |
SOUTH KOREA—1.7% | |||
Industrial Bank of Korea, 5.13%, 10/25/2024(c) | $ | 2,500,000 | 2,486,676 |
Korea Treasury Bond, 3.13%, 09/10/2027(c) | KRW | 14,500,000,000 | 9,661,390 |
Total South Korea | 12,148,066 | ||
UKRAINE—0.6% | |||
Ukraine Government Bond, 15.84%, 02/26/2025(c)(e) | UAH | 210,000,000 | 2,503,876 |
Ukraine Government International Bond, 7.38%, 09/25/2034(a)(c)(d)(e)(g) | $ | 10,600,000 | 1,643,000 |
Total Ukraine | 4,146,876 | ||
URUGUAY—1.9% | |||
Uruguay Government International Bond, 8.25%, 05/21/2031(c) | UYU | 674,024,434 | 13,735,762 |
UZBEKISTAN—0.5% | |||
Republic of Uzbekistan International Bond MTN, 5.38%, 02/20/2029(a)(c) | $ | 4,250,000 | 3,565,580 |
Total Government Bonds | 466,973,457 |
18 | abrdn Asia-Pacific Income Fund, Inc. |
Principal Amount | Value | ||
SHORT-TERM INVESTMENT—3.3% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.01%(i) | 22,927,480 | $ 22,927,480 | |
Total Short-Term Investment | 22,927,480 | ||
Total Investments (Cost $1,328,212,057)(j)—148.2% | 1,046,063,498 | ||
Long Term Debt Securities | (315,000,000) | ||
Mandatory Redeemable Preferred Stock at Liquidation Value | (50,000,000) | ||
Other Assets in Excess of Liabilities—3.5% | 24,868,929 | ||
Net Assets—100.0% | $705,932,427 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely. The maturity date presented for these instruments represents the next call/put date. |
(c) | The maturity date presented for these instruments represents the next call/put date. |
(d) | Security is in default. |
(e) | Illiquid security. |
(f) | This security is government guaranteed. |
(g) | Sinkable security. |
(h) | China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program. |
(i) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2022. |
(j) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
AUD | Australian Dollar |
BRL | Brazilian Real |
CNH | Chinese Yuan Renminbi Offshore |
CNY | Chinese Yuan Renminbi |
COP | Colombian Peso |
EMTN | Euro Medium Term Note |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
KRW | South Korean Won |
KZT | Kazakhstan Tenge |
MTN | Medium Term Note |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PHP | Philippine Peso |
PLC | Public Limited Company |
SGD | Singapore Dollar |
THB | Thai Baht |
UAH | Ukraine Hryvna |
USD | U.S. Dollar |
UYU | Uruguayan Peso |
At October 31, 2022, the Fund held the following futures contracts: |
Futures Contracts | Number of Contracts Long/(Short) | Expiration Date | Notional Amount | Market Value | Unrealized Appreciation/ (Depreciation) |
Long Contract Positions | |||||
Korea Treasury Bond - 10 year | 404 | 12/20/2022 | $31,362,505 | $30,117,421 | $(1,245,084) |
United States Treasury Note 6%—10 year | 75 | 12/20/2022 | 8,312,227 | 8,294,531 | (17,696) |
United States Treasury Note 6%—5 year | 99 | 12/30/2022 | 11,045,980 | 10,552,781 | (493,199) |
United States Treasury Note 6%-Ultra Bond | 271 | 12/20/2022 | 40,557,941 | 34,594,844 | (5,963,097) |
$(7,719,076) | |||||
Short Contract Positions | |||||
United States Treasury Note 6%—10 year | (792) | 12/20/2022 | $(93,238,193) | $(87,590,250) | $5,647,943 |
United States Treasury Note 6%—5 year | (114) | 12/30/2022 | (12,716,176) | (12,151,687) | 564,489 |
$6,212,432 | |||||
$(1,506,644) |
At October 31, 2022, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Australian Dollar/United States Dollar | ||||||||
12/14/2022 | Citibank N.A. | AUD | 15,925,552 | USD | 10,000,000 | $10,200,034 | $200,034 | |
Indonesian Rupiah/United States Dollar | ||||||||
01/19/2023 | UBS AG | IDR | 39,418,166,458 | USD | 2,508,869 | 2,515,368 | 6,499 |
abrdn Asia-Pacific Income Fund, Inc. | 19 |
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
Malaysian Ringgit/United States Dollar | ||||||||
01/11/2023 | Standard Chartered Bank | MYR | 11,225,912 | USD | 2,384,433 | $2,387,070 | $2,637 | |
01/11/2023 | Standard Chartered Bank | MYR | 25,304,335 | USD | 5,388,487 | 5,380,696 | (7,791) | |
Philippine Peso/United States Dollar | ||||||||
11/18/2022 | Citibank N.A. | PHP | 806,619,903 | USD | 13,765,080 | 13,868,523 | 103,443 | |
Singapore Dollar/United States Dollar | ||||||||
12/01/2022 | Standard Chartered Bank | SGD | 43,269,007 | USD | 30,926,669 | 30,571,757 | (354,912) | |
South Korean Won/United States Dollar | ||||||||
11/02/2022 | Citibank N.A. | KRW | 2,540,398,520 | USD | 1,781,810 | 1,783,424 | 1,614 | |
11/02/2022 | Citibank N.A. | KRW | 85,745,557,535 | USD | 61,859,097 | 60,195,555 | (1,663,542) | |
11/02/2022 | UBS AG | KRW | 3,882,788,895 | USD | 2,837,204 | 2,725,816 | (111,388) | |
01/12/2023 | Citibank N.A. | KRW | 15,724,566,282 | USD | 11,086,129 | 11,044,386 | (41,743) | |
Thai Baht/United States Dollar | ||||||||
11/08/2022 | State Street Bank & Trust Co. | THB | 1,252,814,782 | USD | 35,039,065 | 32,931,669 | (2,107,396) | |
$173,604,298 | $(3,972,545) |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||
United States Dollar/Australian Dollar | ||||||||
12/14/2022 | UBS AG | USD | 58,007,018 | AUD | 89,504,295 | $57,325,913 | $681,105 | |
United States Dollar/Chinese Yuan Renminbi Offshore | ||||||||
01/19/2023 | Standard Chartered Bank | USD | 2,044,265 | CNH | 14,950,813 | 2,047,960 | (3,695) | |
United States Dollar/Indian Rupee | ||||||||
12/16/2022 | Citibank N.A. | USD | 2,126,773 | INR | 174,541,461 | 2,098,014 | 28,759 | |
12/16/2022 | HSBC Bank USA | USD | 3,930,283 | INR | 315,259,809 | 3,789,469 | 140,814 | |
United States Dollar/Indonesian Rupiah | ||||||||
01/19/2023 | UBS AG | USD | 33,242,912 | IDR | 522,297,000,000 | 33,329,030 | (86,118) | |
United States Dollar/Malaysian Ringgit | ||||||||
01/11/2023 | BNP Paribas S.A. | USD | 38,646,232 | MYR | 180,327,182 | 38,344,642 | 301,590 | |
United States Dollar/Philippine Peso | ||||||||
11/18/2022 | Citibank N.A. | USD | 18,229,348 | PHP | 1,069,270,631 | 18,384,377 | (155,029) | |
United States Dollar/Singapore Dollar | ||||||||
12/01/2022 | Citibank N.A. | USD | 6,327,087 | SGD | 8,889,051 | 6,280,567 | 46,520 | |
12/01/2022 | Royal Bank of Canada (UK) | USD | 1,270,565 | SGD | 1,816,410 | 1,283,386 | (12,821) | |
United States Dollar/South Korean Won | ||||||||
11/02/2022 | Citibank N.A. | USD | 52,949,597 | KRW | 74,936,630,455 | 52,607,414 | 342,183 | |
11/02/2022 | Citibank N.A. | USD | 9,331,212 | KRW | 13,349,325,600 | 9,371,565 | (40,353) | |
11/02/2022 | UBS AG | USD | 2,730,128 | KRW | 3,882,788,895 | 2,725,816 | 4,312 | |
United States Dollar/Thai Baht | ||||||||
11/08/2022 | UBS AG | USD | 3,813,524 | THB | 141,324,348 | 3,714,872 | 98,652 | |
$231,303,025 | $1,345,919 | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $1,958,162 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(4,584,788) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
20 | abrdn Asia-Pacific Income Fund, Inc. |
Assets | |
Investments, at value (cost $1,305,284,577) | $1,023,136,018 |
Short-term investments, at value (cost $22,927,480) | 22,927,480 |
Foreign currency, at value (cost $2,486,769) | 2,381,409 |
Cash at broker for futures contracts | 5,149,531 |
Cash at broker for forward foreign currency contracts | 1,660,000 |
Due from broker | 81,191 |
Interest receivable | 19,006,262 |
Unrealized appreciation on forward foreign currency exchange contracts | 1,958,162 |
Variation margin receivable for futures contracts | 2,551,690 |
Prepaid expenses in connection with revolving credit facility, senior secured notes, term loans and Series A Mandatory Redeemable Preferred Shares (Note 9) | 1,631,814 |
Prepaid expenses and other assets | 63,348 |
Total assets | 1,080,546,905 |
Liabilities | |
Senior secured notes payable (Note 8) | 250,000,000 |
Revolving credit facility payable (Note 9) | 65,000,000 |
Unrealized depreciation on forward foreign currency exchange contracts | 4,584,788 |
Interest payable on revolving credit facility and senior secured notes | 3,231,930 |
Series A Mandatory Redeemable Preferred Shares ($25.00 liquidation value per share, 2,000,000 shares outstanding) (Note 7) | 50,000,000 |
Investment management fees payable (Note 3) | 545,183 |
Due to custodian | 327,329 |
Dividend payable on Series A Mandatory Redeemable Preferred Shares | 246,355 |
Administration fees payable (Note 3) | 116,680 |
Deferred foreign capital gains tax | 26,022 |
Investor relations fees payable (Note 3) | 20,880 |
Other accrued expenses | 515,311 |
Total liabilities | 374,614,478 |
Net Assets Applicable to Common Shareholders | $705,932,427 |
Composition of Net Assets | |
Common stock (par value $0.01 per share) (Note 5) | $2,476,958 |
Paid-in capital in excess of par | 1,088,987,942 |
Distributable accumulated loss | (385,532,473) |
Net Assets Applicable to Common Shareholders | $705,932,427 |
Net asset value per share based on 247,695,769 shares issued and outstanding | $2.85 |
abrdn Asia-Pacific Income Fund, Inc. | 21 |
Net Investment Income | |
Investment Income: | |
Interest and amortization of discount and premium and other income (net of foreign withholding taxes of $1,451,964) | $72,296,280 |
Total investment income | 72,296,280 |
Expenses: | |
Investment management fee (Note 3) | 7,743,384 |
Administration fee (Note 3) | 1,638,677 |
Bank loan fees and expenses | 967,697 |
Custodian’s fees and expenses | 768,246 |
Investor relations fees and expenses (Note 3) | 255,785 |
Legal fees and expenses | 238,561 |
Directors' fees and expenses | 225,272 |
Reports to shareholders and proxy solicitation | 191,705 |
Insurance expense | 119,964 |
Transfer agent’s fees and expenses | 110,910 |
Independent auditors’ fees and expenses | 101,171 |
Miscellaneous | 111,515 |
Total operating expenses, excluding interest expense | 12,472,887 |
Interest expense (Notes 8 & 9) | 14,408,636 |
Distributions to Series A Mandatory Redeemable Preferred Shares (Note 7) | 2,091,146 |
Net operating expenses | 28,972,669 |
Net investment income applicable to common shareholders | 43,323,611 |
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: | |
Net realized gain/(loss) from: | |
Investment transactions (including $84,726 capital gains tax) | (45,792,263) |
Futures contracts | 2,390,340 |
Interest rate swaps | 12,366,408 |
Forward foreign currency exchange contracts | (13,475,534) |
Foreign currency transactions | (35,780,761) |
(80,291,810) | |
Net change in unrealized appreciation/(depreciation) on: | |
Investments (including change in deferred capital gains tax of $571,014) | (211,187,368) |
Interest rate swaps | (4,274,345) |
Futures contracts | (3,925,886) |
Forward foreign currency exchange contracts | (2,252,680) |
Foreign currency translation | (39,103,440) |
(260,743,719) | |
Net realized and unrealized loss from investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currencies | (341,035,529) |
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations | $(297,711,918) |
22 | abrdn Asia-Pacific Income Fund, Inc. |
For the Year Ended October 31, 2022 | For the Year Ended October 31, 2021 | |
Increase/(Decrease) in Net Assets Applicable to Common Shareholders: | ||
Operations: | ||
Net investment income | $43,323,611 | $43,706,112 |
Net realized loss from investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currency transactions | (80,291,810) | (17,599,227) |
Net change in unrealized depreciation on investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currency translation | (260,743,719) | (10,830,326) |
Net increase/(decrease) in net assets applicable to common shareholders resulting from operations | (297,711,918) | 15,276,559 |
Distributions to Common Shareholders From: | ||
Distributable earnings | (22,362,158) | (43,575,028) |
Tax return of capital | (59,377,467) | (38,164,598) |
Net decrease in net assets applicable to common shareholders from distributions | (81,739,625) | (81,739,626) |
Change in net assets applicable to common shareholders | (379,451,543) | (66,463,067) |
Net Assets Applicable to Common Shareholders: | ||
Beginning of year | 1,085,383,970 | 1,151,847,037 |
End of year | $705,932,427 | $1,085,383,970 |
abrdn Asia-Pacific Income Fund, Inc. | 23 |
Cash flows from operating activities: | |
Net increase (decrease) in net assets resulting from operations | $(297,711,918) |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | |
Investments purchased | (347,717,769) |
Investments sold and principal repayments | 546,212,614 |
Decrease in short-term investments, excluding foreign government | 95,573 |
Net amortization/accretion of premium (discount) | (111,393) |
Decrease in cash due to broker for forward foreign currency exchange contracts | (230,000) |
Decrease in interest and dividends receivable | 4,912,953 |
Net change unrealized (appreciation) depreciation on forward foreign currency exchange contracts | 2,252,680 |
Decrease in prepaid expenses | 467,891 |
Decrease in interest payable on bank loan | (1,360,058) |
Decrease in accrued investment management fees payable | (346,682) |
Decrease in other accrued expenses | (226,916) |
Decrease in variation margin payable for futures contracts | (132,448) |
Net change in unrealized depreciation of investments | 211,187,368 |
Net change unrealized depreciation on forward foreign currency translations | 39,103,440 |
Net realized loss on investments transactions | 45,792,263 |
Net cash provided by operating activities | 202,187,598 |
Cash flows from financing activities: | |
Increase in due to custodian | 327,329 |
Borrowings on line of credit | 75,000,000 |
Repayment of Series B Senior Note | (100,000,000) |
Repayment of revolving credit facility | (110,000,000) |
Distributions paid to shareholders | (81,739,625) |
Net cash paid (received) for swap contracts | (98,918) |
Net cash used in financing activities | (216,511,214) |
Effect of exchange rate on cash | (147,295) |
Net change in cash | (14,470,911) |
Unrestricted and restricted cash and foreign currency, beginning of year | 23,743,042 |
Unrestricted and restricted cash and foreign currency, end of year | $9,272,131 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest and fees on borrowing | $15,768,694 |
24 | abrdn Asia-Pacific Income Fund, Inc. |
Reconciliation of unrestricted and restricted cash to the statements of assets and liabilities | ||
Year Ended October 31, 2022 | Year Ended October 31, 2021 | |
Cash | $– | $5,570,685 |
Foreign currency, at value | 2,381,409 | 11,255,759 |
Cash at broker for interest rate swaps | – | 4,104,161 |
Cash at broker for futures contracts | 5,149,531 | 2,342,437 |
Cash at broker for forward foreign currency contracts | 1,660,000 | 470,000 |
Due from broker | 81,191 | – |
$9,272,131 | $23,743,042 |
abrdn Asia-Pacific Income Fund, Inc. | 25 |
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 | $4.38 | $4.65 | $4.88 | $4.59 | $5.43 |
Net investment income | 0.17 | 0.18 | 0.15 | 0.18 | 0.21 |
Net realized and unrealized gains/(losses) on investments, interest rate swaps, futures contracts and foreign currency transactions | (1.37) | (0.12) | (0.05) | 0.48 | (0.64) |
Total from investment operations applicable to common shareholders | (1.20) | 0.06 | 0.10 | 0.66 | (0.43) |
Distributions to common shareholders from: | |||||
Net investment income | (0.09) | (0.18) | (0.07) | (0.12) | (0.25) |
Net realized gains | – | – | (0.01) | – | – |
Tax return of capital | (0.24) | (0.15) | (0.25) | (0.25) | (0.17) |
Total distributions | (0.33) | (0.33) | (0.33) | (0.37) | (0.42) |
Capital Share Transactions: | |||||
Impact due to open market repurchase policy (Note 7) | – | – | – | – | 0.01 |
Net asset value per common share, end of year | $2.85 | $4.38 | $4.65 | $4.88 | $4.59 |
Market price, end of year | $2.37 | $4.22 | $3.80 | $4.25 | $3.93 |
Total Investment Return Based on(b): | |||||
Market price | (37.59%) | 19.87% | (2.82%) | 18.12% | (14.29%) |
Net asset value | (27.70%) | 1.67% | 3.56% | 16.13% | (7.27%) |
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data(c): | |||||
Net assets applicable to common shareholders, end of year (000 omitted) | $705,932 | $1,085,384 | $1,151,847 | $1,208,154 | $1,142,604 |
Average net assets applicable to common shareholders (000 omitted) | $919,052 | $1,165,019 | $1,145,806 | $1,194,235 | $1,290,606 |
Net operating expenses | 3.15% | 2.57% | 2.87% | 2.84% | 2.67% |
Net operating expenses, excluding interest expense and distributions to Series A Mandatory Redeemable Preferred Shares | 1.36% | 1.16% | 1.32% | 1.22% | 1.17% |
Net Investment income | 4.71% | 3.75% | 3.29% | 3.68% | 4.14% |
Portfolio turnover | 26% | 44% | 88% | 46% | 44% |
Leverage (senior securities) outstanding (000 omitted) | $315,000 | $450,000 | $415,000 | $531,000 | $505,000 |
Leverage (preferred stock) outstanding (000 omitted) | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 |
Asset coverage ratio on long-term debt obligations at year end(d) | 340% | 352% | 390% | 337% | 336% |
Asset coverage per $1,000 on long-term debt obligations at year end | $3,400 | $3,523 | $3,896 | $3,369 | $3,362 See Notes to Financial Statements. |
26 | abrdn Asia-Pacific Income Fund, Inc. |
For the Fiscal Years Ended October 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Asset coverage ratio on total leverage at year end(e) | 293% | 317% | 348% | 308% | 306% |
Asset coverage per $1,000 on total leverage at year end | $2,934 | $3,171 | $3,477 | $3,079 | $3,059 |
(a) | Based on average shares outstanding. |
(b) | Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value. |
(c) | Ratios calculated on the basis of income, expenses and preferred share dividends applicable to both the common and preferred shares relative to the average net assets of common shareholders. For the fiscal years ended October 31, 2022, 2021, 2020, 2019, 2018, the ratios of net investment income before preferred stock dividends to average net assets of common shareholders were 4.91, 3.93%, 3.47%, 3.85% and 4.30% respectively. |
(d) | Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings, including Series A Mandatory Redeemable Preferred Shares, for investment purposes by the amount of any long-term debt obligations, which includes the senior secured notes and revolving credit facility. |
(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 Asia-Pacific Income Fund, Inc. | 27 |
October 31, 2022
28 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
abrdn Asia-Pacific Income Fund, Inc. | 29 |
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. |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Assets | ||||
Investments in Securities | ||||
Corporate Bonds | $– | $556,162,561 | $– | $556,162,561 |
Government Bonds | – | 466,973,457 | – | 466,973,457 |
Short-Term Investment | 22,927,480 | – | – | 22,927,480 |
Total Investments | $22,927,480 | $1,023,136,018 | $– | $1,046,063,498 |
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $1,958,162 | $– | $1,958,162 |
Futures Contracts | 6,212,432 | – | – | 6,212,432 |
Total Other Financial Instruments | $6,212,432 | $1,958,162 | $– | $8,170,594 |
Total Assets | $29,139,912 | $1,025,094,180 | $– | $1,054,234,092 |
Liabilities | ||||
Other Financial Instruments | ||||
Foreign Currency Exchange Contracts | $– | $(4,584,788) | $– | $(4,584,788) |
Futures Contracts | (7,719,076) | – | – | (7,719,076) |
Total Liabilities | $(7,719,076) | $(4,584,788) | $– | $(12,303,864) |
i) | market value of investment securities, other assets and liabilities – at the current daily rates of exchange at the Valuation Time; and |
ii) | purchases and sales of investment securities, income and expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions. |
30 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
abrdn Asia-Pacific Income Fund, Inc. | 31 |
October 31, 2022
32 | abrdn Asia-Pacific Income Fund, Inc. |
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 | $– | $1,958,162 | $– | $– | $– | $1,958,162 |
Futures Contracts | 6,212,432 | – | – | – | – | 6,212,432 |
Total | $6,212,432 | $1,958,162 | $– | $– | $– | $8,170,594 |
Liabilities: | ||||||
Unrealized depreciation on: | ||||||
Forward Foreign Currency Exchange Contracts | $– | $4,584,788 | $– | $– | $– | $4,584,788 |
Futures Contracts | 7,719,076 | – | – | – | – | 7,719,076 |
Total | $7,719,076 | $4,584,788 | $– | $– | $– | $12,303,864 |
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 | ||||||||
BNP Paribas S.A. | $301,590 | $– | $– | $301,590 | $– | $– | $– | $– |
Citibank N.A. | 722,553 | (722,553) | – | – | 1,900,667 | (722,553) | (1,178,114) | – |
HSBC Bank USA | 140,814 | – | – | 140,814 | – | – | – | – |
Royal Bank of Canada (UK) | – | – | – | – | 12,821 | – | – | 12,821 |
Standard Chartered Bank | 2,637 | (2,637) | – | – | 366,398 | (2,637) | – | 363,761 |
State Street Bank & Trust Co. | – | – | – | – | 2,107,396 | – | – | 2,107,396 |
UBS AG | 790,568 | (197,506) | – | 593,062 | 197,506 | (197,506) | – | – |
abrdn Asia-Pacific Income Fund, Inc. | 33 |
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: | ||||||
Futures Contracts | $2,390,340 | $– | $– | $– | $– | $2,390,340 |
Forward Currency Contracts | – | (13,475,534) | – | – | – | (13,475,534) |
Swap Contracts | 12,366,408 | – | – | – | – | 12,366,408 |
Total | $14,756,748 | $(13,475,534) | $– | $– | $– | $1,281,214 |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation (depreciation) of: | ||||||
Futures Contracts | $(3,925,886) | $– | $– | $– | $– | $(3,925,886) |
Forward Currency Contracts | – | (2,252,680) | – | – | – | (2,252,680) |
Swap Contracts | (4,274,345) | – | – | – | – | (4,274,345) |
Total | $(8,200,231) | $(2,252,680) | $– | $– | $– | $(10,452,911) |
Derivative | Average Notional Value |
Long Futures Contracts | $75,477,074 |
Short Futures Contracts | $120,452,739 |
Swap Contracts at Notional Amount | $108,333,333 |
Foreign Currency Contracts Purchased | $330,101,794 |
Foreign Currency Contracts Sold | $199,730,749 |
34 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
abrdn Asia-Pacific Income Fund, Inc. | 35 |
October 31, 2022
36 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
Mandatory Redemption Date | Annual Fixed Rate | Aggregate Liquidation Preference | Estimated Fair Value |
June 27, 2023 | 4 | $50,000,000 | $49,092,762 |
abrdn Asia-Pacific Income Fund, Inc. | 37 |
October 31, 2022
Series | Maturity Date | Interest Rate | Notional/ Carrying Amount | Estimated Fair Value |
Series C | February 8, 2032 | 3.87% | $50,000,000 | $42,951,111 |
Series D | August 10, 2032 | 3.70% | $100,000,000 | $84,038,377 |
Series E | June 19, 2034 | 3.73% | $100,000,000 | $82,207,923 |
38 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
abrdn Asia-Pacific Income Fund, Inc. | 39 |
October 31, 2022
40 | abrdn Asia-Pacific Income Fund, Inc. |
October 31, 2022
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
$1,370,204,703 | $15,718,886 | $(341,105,176) | $(325,386,290) |
October 31, 2022 | October 31, 2021 | |
Distributions paid from: | ||
Ordinary Income | $22,362,158 | $43,575,028 |
Return of Capital | 59,377,467 | 38,164,598 |
Total tax character of distributions | $81,739,625 | $81,739,626 |
Undistributed Ordinary Income | $- |
Undistributed Long-Term Capital Gains | - |
Total undistributed earnings | $- |
Capital loss carryforward | $(74,801,582)* |
Other currency gains | — |
Other Temporary Differences | (9,151,201) |
Unrealized Appreciation/(Depreciation) | (301,579,690)** |
Total accumulated earnings/(losses) – net | $(385,532,473) |
* | On October 31, 2022, the Fund had a net capital loss carryforward of $(74,801,582) 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 |
$9,760,222 | Unlimited (Short-Term) |
65,041,360 | Unlimited (Long-Term) |
abrdn Asia-Pacific Income Fund, Inc. | 41 |
abrdn Asia-Pacific Income Fund, Inc.:
December 29, 2022
42 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 43 |
44 | abrdn Asia-Pacific Income Fund, Inc. |
• | the nature, quality, cost and extent of administrative services provided by abrdn Inc., an affiliate of the Investment Manager, under a separate agreement covering administrative services. |
abrdn Asia-Pacific Income Fund, Inc. | 45 |
46 | abrdn Asia-Pacific Income Fund, Inc. |
1. | The Fund will only use counterparty institutions rated A- or better by recognized international rating agencies for all over the counter (“OTC”) derivatives transactions. |
2. | A maximum of 20% of the Fund’s total assets may have exposure to currency-linked notes. |
3. | A maximum of 10% of the Fund’s total assets may be at risk to any single counterparty (aggregate interest rate, currency and credit derivatives). |
4. | Exchange-traded derivatives may only be traded on regulated derivative exchanges and a maximum of 35% of the Fund’s total assets may have exposure to exchange-traded derivatives. |
5. | A maximum of 20% of the Fund’s total assets may have exposure to derivatives traded on the Chicago Board of Trade. |
• | if the value of such securities exceeds 3% of the total outstanding voting stock of the acquired company; |
• | if the aggregate value of such securities would exceed 5% of the value of the total assets of the Fund; or |
• | if the aggregate value of such securities, together with all other acquired company securities in the Fund’s portfolio, would exceed 10% of the value of the total assets of the Fund. |
abrdn Asia-Pacific Income Fund, Inc. | 47 |
1. | issue senior securities, except (a) insofar as the Fund may be deemed to have issued a senior security in connection with any repurchase or securities lending agreement or any borrowing agreement permitted by these investment restrictions and (b) that the Fund may issue one or more series of its preferred stock, if permitted by its Articles of Incorporation, including Articles of Amendment and Articles Supplementary thereto; |
2. | borrow money, except as permitted under, or to the extent not prohibited by, the Investment Company Act of 1940, as amended, and as interpreted or modified by regulatory authority having jurisdiction, from time to time; |
3. | engage in the business of underwriting securities issued by others, except to the extent that the Fund may be deemed to be an underwriter in connection with the disposition of portfolio securities; |
4. | purchase or sell real estate, which term does not include securities of companies that deal in real estate or mortgages or investments secured by real estate or interests therein, except that the Fund reserves freedom of action to hold and to sell real estate acquired as a result of the Fund’s ownership of securities; |
5. | purchase physical commodities or contracts relating to physical commodities; |
6. | make loans to other persons, except as permitted under, or to the extent not prohibited by, the Investment Company Act of 1940, as amended, and as interpreted or modified by regulatory authority having jurisdiction, from time to time; |
7. | concentrate its investments in a particular industry or group of industries, as those terms are used in the Investment Company Act of 1940, as amended or modified by regulatory authority having jurisdiction from time to time, except that at any time the Fund has invested more than 25% of its total assets in securities of issuers of a particular country, the Fund may invest more than 25% of its assets, and up to the amount of its total assets invested in securities of issuers of that country, in securities issued or guaranteed, as to payment of principal and interest, by the government (including governmental subdivisions) or governmental entities or instrumentalities of that country. |
48 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 49 |
• | The Fund will only use counterparty institutions rated A- or better by recognized international rating agencies, except with respect to Korean futures. In Korea, brokerage houses with Korean futures exchanges require deposits into margin accounts, and in many cases, these accounts are with unrated entities. |
• | A maximum of 20% of the Fund’s total assets may have exposure to currency-linked notes. |
• | A maximum of 10% of the Fund’s total assets may be at risk to any single counterparty (aggregate interest rate, currency and credit derivatives). |
• | Exchange-traded derivatives may only be traded on regulated derivative exchanges and a maximum of 35% of the Fund’s total assets may have exposure to exchange-traded derivatives. |
• | The Fund’s maximum gross exposure (long plus short positions) to derivatives traded on the Sydney Futures Exchange is 20% of its total assets and the maximum net exposure (long positions minus short positions) to derivatives traded on the Sydney Futures Exchange is 15% of the Fund’s total assets. |
• | A maximum of 20% of the Fund’s total assets may have exposure to derivatives traded on the Chicago Board of Trade. |
50 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 51 |
52 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 53 |
54 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 55 |
56 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 57 |
58 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 59 |
60 | abrdn Asia-Pacific Income Fund, Inc. |
• | an imperfect correlation between the price of derivatives and the movement of the securities prices, interest rates or currency exchange rates being hedged or replicated; |
• | the possible absence of a liquid secondary market for any particular derivatives contract at any time and the need to continue making margin and settlement payments thereunder; |
• | the potential loss if the counterparty to the transaction does not perform as promised; |
• | the possible need to defer closing out certain positions to avoid adverse tax consequences, as well as the possibility that derivative transactions may result in acceleration of gain, deferral of losses or a change in the character of gain realized; |
• | the risk that the financial intermediary "manufacturing" the over-the-counter derivative, being the most active market maker and offering the best price for repurchase, will not continue to create a credible market in the derivative; |
• | because certain derivatives are "manufactured" by financial institutions, the risk that the Fund may develop a substantial exposure to financial institution counterparties; and |
abrdn Asia-Pacific Income Fund, Inc. | 61 |
• | the risk that a full and complete appreciation of the complexity of derivatives and how future value is affected by various factors including changing interest rates, exchange rates and credit quality is not attained. |
62 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 63 |
64 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 65 |
66 | abrdn Asia-Pacific Income Fund, Inc. |
Assumed annual returns on the Fund's portfolio (net of expenses) | (10)% | (5)% | 0% | 5% | 10% |
Corresponding return of shareholder | (17.2%) | (9.7%) | (2.1%) | 5.5% | 13.1% |
and other factors.
abrdn Asia-Pacific Income Fund, Inc. | 67 |
68 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 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 Director | Other Directorships Held by Director** |
Interested Directors | |||||
Stephen Bird† c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1967 | Class I Director; Vice President | Term 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 Directors | |||||
Radhika Ajmera c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1964 | Class III Director | Term expires 2024; Director since 2021 | Ms. Ajmera was appointed Chair of abrdn Japan Equity Fund Inc in 2017, having served as a director since 2014. She has been an independent nonexecutive director of abrdn Asia-Pacific Income Fund VCC since 2015. She is also an independent non-executive director of abrdn Funds since 2020 and abrdn Global Income Fund Inc, abrdn Asia-Pacific Income Fund Inc and abrdn Australia Equity Fund Inc since 2021. She has over 20 years’ experience in fund management, predominantly in emerging markets. She has also held a number of UK closed end fund non-executive directorships. Ms. Ajmera is a graduate of the London School of Economics. | 23 | None. |
70 | abrdn Asia-Pacific Income Fund, Inc. |
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 Director | Other Directorships Held by Director** |
P. Gerald Malone c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1950 | Chairman of the Board; Class II Director | Term expires 2023; Director since 2001 | 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. |
William J. Potter c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1948 | Preferred Share Director | Term expires 2024; Director since 1992 | Mr. Potter has been the Chairman of Arsenal Square Holdings (consulting and advisory) since 2018, a Director of Alexandria Bancorp (international banking and trustee services) since 1989, a Director of the National Foreign Trade Council (international trade) 1983-2017, director of Howell Biopharma Ltd (healthcare) since 2018, director and chairman of Arrow Robotics Ltd (technology) since 2018, and advisory board member of Nuvve Holding Corporation (technology) since 2020. He also serves on the boards or advisory boards of a number of private companies and charities including the Queen Elizabeth September 11th Garden and the National Foundation for Cancer Research. | 3 | None. |
Moritz Sell c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1967 | Class I Director | Term expires 2025; Director since 2018 | Mr. Sell currently serves as a Principal at Edison Holdings GmbH (commercial real estate and venture capital) (since October 2015). In addition, Mr. Sell served as Senior Advisor to Markston International LLC, an Independent Investment manager (from 2014 through 2019). | 3 | Swiss Helvetia Fund (since June 2017) and High Income Securities Fund (since June 2018). |
* | 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 Investment Manager. |
abrdn Asia-Pacific Income Fund, Inc. | 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 |
Kenneth Akintewe** c\o abrdn Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1980 | Vice President | Since 2014 | Currently, Head of Asian Sovereign Debt on the Asian Fixed Income Team at abrdn. Mr. Akintewe joined abrdn in 2002. |
Joseph Andolina** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Chief Compliance Officer; 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. |
Mark Baker** c\o abrdn Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1981 | Vice President | Since 2019 | Currently, Head of Fixed Income – Hong Kong on the Asian Fixed Income Team at abrdn. Mr. Baker joined abrdn in 2012. |
Chris Demetriou** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Since 2020 | Currently, Chief Executive Officer – UK, EMEA and Americas. Mr. Demetriou joined abrdn Inc. in 2013, as a result of the acquisition of SVG, a FTSE 250 private equity investor based in London. |
Sharon Ferrari** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1977 | Vice President | Since 2009 | 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 2009 | 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. |
Megan Kennedy** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Vice President and Secretary | Since 2008 | Currently, Director, Senior Product Governance for abrdn Inc. Ms. Kennedy joined abrdn Inc. in 2005. |
72 | abrdn Asia-Pacific Income Fund, Inc. |
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 |
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. |
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. |
Adam McCabe** c\o abrdn Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1979 | Vice President | Since 2011 | Currently, Head of Fixed Income – Asia Pacific at abrdn. Mr. McCabe joined abrdn in 2009 following the acquisition of certain asset management businesses from Credit Suisse. |
Andrea Melia** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1969 | Treasurer and Principal Accounting Officer | Since 2009 | Currently, Vice President and Senior Director, Product Management for abrdn Inc. Ms. Melia joined abrdn Inc. in September 2009. |
Christian Pittard** c/o abrdn Investments Limited 280 Bishopsgate London, EC2M 4AG Year of Birth: 1973 | President | Since 2009 | 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 2008 | Currently, Vice President and Head of Product Management and Governance for abrdn Inc. since 2020. Previously, Ms. Sitar was Managing U.S. Counsel for abrdn Inc. She joined abrdn Inc. as U.S. Counsel in July 2007. |
* | 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 Directors. |
** | Each officer may hold officer position(s) in one or more other funds which are part of the Fund Complex. |
abrdn Asia-Pacific Income Fund, Inc. | 73 |
Radhika Ajmera
Stephen Bird
William J. Potter
Moritz Sell
21 Church Street
#01-01 Capital Square Two
Singapore 049480
10 Queen's Terrace
Aberdeen, AB10 1XL
Scotland, United Kingdom
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 Asia-Pacific Income Fund, Inc. (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 Directors has determined that Moritz Sell, a member of the Board of Directors’ 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. Sell as the Audit Committee’s financial expert. Mr. Sell is considered to be an “independent” director, 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 | $ | 90,660 | $ | 0 | $ | 7,720 | $ | 0 | ||||||||
Percentage approved pursuant to pre-approval exception5 | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
October 31, 2021 | $ | 85,587 | $ | 0 | $ | 7,980 | $ | 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 | $ | 7,980 | $ | 0 | $ | 1,547,556 | $ | 1,555,536 |
“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:
Radhika Ajmera
P. Gerald Malone
William J. Potter
Moritz Sell
(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 Directors 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 Asia-Pacific fixed income team which also draws on the expertise of abrdn’s fixed income team globally. The Asia-Pacific fixed income team works in a collaborative fashion; all team members have both portfolio management and research responsibilities. The team is 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 |
Kenneth Akintewe Head of Asian Sovereign Debt | Kenneth Akintewe is the Head of Asian Sovereign Debt on the Asia-Pacific fixed income team. Kenneth is responsible for coordinating Asian interest rate and foreign exchange strategy. He is also a Vice President and Officer for the abrdn Asia-Pacific Income Fund, abrdn Global Income Fund and abrdn Asia-Pacific Income Investment Company Limited. Following a graduate traineeship in 2002 with the Global Equities team in Glasgow, Kenneth joined the Global Fixed Income team in London in 2003. In his role as assistant fund manager he transferred to abrdn's Singapore office in 2004, in order to facilitate the incorporation of Asian fixed income into global bond portfolios, before joining the Asia-Pacific fixed income team in 2005 to focus on Asian local currency interest rate and foreign exchange strategy. Kenneth graduated with an MA in Economics and an MSc in International Banking and Financial Studies from Heriot-Watt University, Edinburgh, UK. |
Mark Baker Head of Fixed Income – Hong Kong | Mark Baker is the Head of Fixed Income - Hong Kong, within the Emerging Market Debt team and is responsible for covering Sovereign Debt. Mark began his investment career in 2001 at Henderson Global Investors before moving to Citigroup Asset Management. Prior to joining Standard Life (which merged with abrdn in August 2017) in 2012, Mark spent seven years at Threadneedle Investments as an Investment Specialist for Emerging Market Fixed Income. He graduated with a BA (Hons) in Business Studies from London Southbank University. Mark also holds the IMC and is a CFA® Charterholder. |
Tai Li-Yan Investment Manager | Tai Li Yian is an Investment Manager on the Asia Pacific fixed income team. Li Yian is responsible for undertaking fundamental research and making investment recommendations on Asian corporate credits. Li Yian joined the firm in 2014 as a Graduate Trainee. Li Yian graduated with a Bachelor of Commerce from the University of Melbourne and an MSc in Financial Economics from the University of Oxford. Li-Yian is a CFA® Charterholder. |
Adam McCabe Head of Fixed Income Asia Pacific | Adam McCabe is the Head of Fixed Income - Asia Pacific at abrdn. Adam joined abrdn via the acquisition of certain asset management businesses from Credit Suisse in 2009. Adam worked for Credit Suisse since 2001, where he was a director/investment manager responsible for the development and implementation of its Asian currency and interest rate strategies. Before that, he was a member of Credit Suisse's Australian fixed income team, where he was responsible for interest rate and currency strategies. Adam was also Head of Fixed Income for Woori Credit Suisse Asset Management, Korea, where he was responsible for the fixed income and money market portfolio management, investment strategy and processes. Adam graduated with a BComm (First Class Honours and University Medal) from the University of Sydney, Australia and a Diploma in Global Finance from the Chinese University of Hong Kong. |
(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) | ||||||||
Kenneth Akintewe | Registered Investment Companies | 6 | $ | 1,431.72 | 0 | $ | 0 | ||||||
Pooled Investment Vehicles | 41 | $ | 4,733.25 | 0 | $ | 0 | |||||||
Other Accounts | 34 | $ | 9,631.29 | 0 | $ | 0 | |||||||
Mark Baker | Registered Investment Companies | 6 | $ | 1,431.72 | 0 | $ | 0 | ||||||
Pooled Investment Vehicles | 41 | $ | 4,733.25 | 0 | $ | 0 | |||||||
Other Accounts | 34 | $ | 9,631.29 | 0 | $ | 0 | |||||||
Tai Li-Yan | Registered Investment Companies | 6 | $ | 1,431.72 | 0 | $ | 0 | ||||||
Pooled Investment Vehicles | 41 | $ | 4,733.25 | 0 | $ | 0 | |||||||
Other Accounts | 34 | $ | 9,631.29 | 0 | $ | 0 | |||||||
Adam McCabe | Registered Investment Companies | 6 | $ | 1,431.72 | 0 | $ | 0 | ||||||
Pooled Investment Vehicles | 41 | $ | 4,733.25 | 0 | $ | 0 | |||||||
Other Accounts | 34 | $ | 9,631.29 | 0 | $ | 0 |
1 Includes accounts managed by the Global Emerging Markets Debt, Asian Fixed Income and Australian Fixed Income 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, 2021 | ||||
Kenneth Akintewe | $1-$10,000 | |||
Mark Baker | None | |||
Tai Li-Yan | None | |||
Adam McCabe | $10,001-$50,000 |
(b) Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No such purchases were made by or on behalf of the Registrant during the period covered by the report.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended October 31, 2022, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
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) | A copy of the Registrant’s notices to stockholders, which accompanied distributions paid, pursuant to the Registrant’s Managed Distribution Policy since the Registrant’s last filed N-CSR, are filed herewith as Exhibits (e)(1), (e)(2), (e)(3), (e)(4) and (e)(5) as required by the terms of the Registrant’s SEC exemptive order. |
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 Asia-Pacific Income Fund, Inc.
By: | /s/ Christian Pittard | |
Christian Pittard, | ||
Principal Executive Officer of abrdn Asia-Pacific Income Fund, Inc. | ||
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 Asia-Pacific Income Fund, Inc. | ||
Date: January 9, 2023 |
By: | /s/ Andrea Melia | |
Andrea Melia, | ||
Principal Financial Officer of abrdn Asia-Pacific Income Fund, Inc. | ||
Date: January 9, 2023 |