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: | Sharon Ferrari |
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: | April 30, 2024 |
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.
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 includes 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 5. |
abrdn Asia-Pacific Income Fund, Inc. | 1 |
* | 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. |
*** | Kroll is a nationally recognized statistical rating organization (NRSRO). |
2 | abrdn Asia-Pacific Income Fund, Inc. |
• | Visit: https://www.abrdn.com/en-us/cefinvestorcenter |
• | Email: [email protected]; or |
• | Call: 1-800-522-5465 (toll free in the U.S.). |
Christian Pittard
President
abrdn Asia-Pacific Income Fund, Inc. | 3 |
4 | abrdn Asia-Pacific Income Fund, Inc. |
6 Months | 1 Year | 3 Years | 5 Years | 10 Years | |
Net Asset Value (NAV) | 8.55% | 3.49% | -5.10% | -0.39% | 0.68% |
Market Price | 11.19% | 4.01% | -6.63% | -0.24% | 0.00% |
Blended Benchmark* | 5.19% | 1.04% | -2.40% | 1.06% | 1.59% |
Bloomberg Asian-Pacific Aggregate Index1 | 1.38% | -7.88% | -7.41% | -3.20% | -1.49% |
* | The blended benchmark is summarized in the table below: |
Blended Benchmark Constituents | 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% |
![](https://www.sec.gov/Archives/edgar/data/0000790500/000110465924078331/tm2416313d19reporti003.jpg)
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") that 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 the 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. | 5 |
6 | abrdn Asia-Pacific Income Fund, Inc. |
Date | AAA/Aaa % | AA/Aa % | A % | BBB/Baa % | BB/Ba* % | B* % | B or below* % | NR** % |
April 30, 2024 | 0.0 | 5.3 | 11.0 | 57.8 | 16.9 | 4.7 | 2.5 | 1.8 |
October 31, 2023 | 0.0 | 5.9 | 8.5 | 59.6 | 13.1 | 5.5 | 2.2 | 5.2 |
April 30, 2023 | 3.6 | 6.0 | 8.0 | 56.3 | 12.7 | 5.7 | 2.9 | 4.8 |
* | Below investment grade |
** | Not Rated |
Date | Asia (including NZ) % | Australia % | Latin America % | Other, < 5 % |
April 30, 2024 | 76.3 | 7.6 | 6.1 | 10.0 |
October 31, 2023 | 72.7 | 6.8 | 5.7 | 14.8 |
April 30, 2023 | 75.5 | 7.4 | 7.5 | 9.6 |
Date | U.S. Dollar % | Asian Currencies (including NZ Dollar) % | Australian Dollar % | Latin American Currencies % | Other, < 5 % |
April 30, 2024 | 50.7 | 37.1 | 4.3 | 2.5 | 5.4 |
October 31, 2023 | 51.7 | 36.7 | 3.5 | 2.8 | 5.3 |
April 30, 2023 | 45.6 | 41.2 | 5.2 | 7.5 | 0.5 |
Date | 0 to 5 Years % | 5 to 10 Years % | 10 Years & Over % |
April 30, 2024 | 48.9 | 32.2 | 18.9 |
October 31, 2023 | 26.0 | 50.0 | 24.0 |
April 30, 2023 | 47.6 | 35.6 | 16.8 |
abrdn Asia-Pacific Income Fund, Inc. | 7 |
* | Modified duration is a measure of the sensitivity of the price of a bond to the fluctuations in interest rates. |
(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. |
(2) | % reflected in below table do not reflect exposure to derivatives. |
8 | abrdn Asia-Pacific Income Fund, Inc. |
Apr–24 | Oct–23 | Apr-23 | ||
Australia | 90 day Bank Bills | 4.40% | 4.36% | 3.68% |
10 yr bond | 4.42% | 3.90% | 3.58% | |
currency local per 1USD | $1.54 | $1.58 | $1.51 | |
South Korea | 90 day commercial paper | 3.57% | 3.82% | 3.52% |
10 yr bond | 3.65% | 4.34% | 3.37% | |
currency local per 1USD | ₩157.37 | ₩1,350.55 | ₩1,338.40 | |
Thailand | 3-month deposit rate | 1.20% | 1.20% | 0.85% |
10 yr bond | 2.76% | 3.21% | 2.53% | |
currency local per 1USD | ฿37.06 | ฿35.94 | ฿34.15 | |
Philippines | 90 day T-Bills | 5.86% | 6.15% | 5.82% |
10 yr bond | 7.03% | 7.00% | 6.12% | |
currency local per 1USD | ₱57.77 | ₱56.74 | ₱55.39 | |
Malaysia | 3-Month T-Bills | 3.20% | 3.21% | 2.85% |
10 yr bond | 3.99% | 4.10% | 3.73% | |
currency local per 1USD | RM4.77 | RM4.76 | RM4.46 | |
Singapore | 3-month T-Bills | 3.94% | 4.12% | 3.94% |
10 yr bond | 3.45% | 3.38% | 2.76% | |
currency local per 1USD | S$1.36 | S$1.37 | S$1.33 | |
India | 3-month T-Bills | 6.98% | 6.89% | 6.78% |
10 yr bond | 7.19% | 7.35% | 7.11% | |
currency local per 1USD | ₹83.44 | ₹83.26 | ₹81.84 | |
Indonesia | 3-month deposit rate | 4.18% | 4.10% | 3.94% |
10 yr bond | 7.22% | 7.09% | 6.51% | |
currency local per 1USD | Rp16,260.00 | Rp15,885.00 | Rp14,670.00 | |
China Onshore | 3-month Bill Yield | 1.57% | 2.27% | 2.00% |
10 yr bond | 2.31% | 2.69% | 2.78% | |
currency local per 1USD | ¥7.24 | ¥7.32 | ¥6.93 | |
Sri Lanka | 3-month Generic Govt Yield | 9.88% | 16.08% | 25.06% |
10 yr bond | 12.92% | 13.01% | 23.37% | |
currency local per 1USD | Rs297.50 | Rs327.60 | Rs320.86 | |
USD Denominated Bonds | Indonesia | 5.53% | 5.85% | 4.44% |
Sri Lanka | 22.78% | 24.75% | 34.68% |
abrdn Asia-Pacific Income Fund, Inc. | 9 |
10 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 11 |
12 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 13 |
14 | abrdn Asia-Pacific Income Fund, Inc. |
At April 30, 2024, 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 | 605 | 6/18/2024 | $49,946,097 | $48,589,104 | $(1,356,993) |
Ultra United States Treasury Note 10 Year | 221 | 6/18/2024 | 27,647,205 | 26,423,313 | (1,223,892) |
United States Treasury Note 6%—5 Year | 300 | 6/28/2024 | 32,009,034 | 31,422,656 | (586,378) |
$(3,167,263) | |||||
Short Contract Positions | |||||
United States Treasury Notes 10 Year | (169) | 6/18/2024 | $(18,591,055) | $(18,156,938) | $434,117 |
$(2,733,146) |
abrdn Asia-Pacific Income Fund, Inc. | 15 |
At April 30, 2024, the Fund held the following forward foreign currency contracts: |
Purchase Contracts Settlement Date* | Counterparty | Currency Purchased | Amount Purchased | Currency Sold | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |
Australian Dollar/United States Dollar | ||||||||
05/20/2024 | UBS AG | AUD | 51,416,956 | USD | 33,580,362 | $33,325,602 | $(254,760) | |
Chinese Yuan Renminbi Offshore/United States Dollar | ||||||||
06/25/2024 | Standard Chartered Bank | CNH | 257,689,905 | USD | 35,980,562 | 35,613,966 | (366,596) | |
Singapore Dollar/United States Dollar | ||||||||
06/07/2024 | Citibank N.A. | SGD | 46,983,816 | USD | 35,382,832 | 34,476,105 | (906,727) | |
South Korean Won/United States Dollar | ||||||||
07/12/2024 | HSBC Bank USA | KRW | 6,379,984,746 | USD | 4,641,440 | 4,621,247 | (20,193) | |
Thai Baht/United States Dollar | ||||||||
07/05/2024 | Citibank N.A. | THB | 760,986,409 | USD | 20,712,694 | 20,637,514 | (75,180) | |
$128,674,434 | $(1,623,456) |
Sale Contracts Settlement Date* | Counterparty | Currency Purchased | Amount Purchased | Currency Sold | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |
United States Dollar/Indonesian Rupiah | ||||||||
05/21/2024 | UBS AG | USD | 15,782,927 | IDR | 246,490,181,000 | $15,173,553 | $609,374 | |
United States Dollar/Malaysian Ringgit | ||||||||
05/24/2024 | Standard Chartered Bank | USD | 14,644,138 | MYR | 69,378,410 | 14,557,320 | 86,818 | |
United States Dollar/Philippine Peso | ||||||||
06/05/2024 | HSBC Bank USA | USD | 9,862,192 | PHP | 558,362,776 | 9,664,826 | 197,366 | |
06/05/2024 | UBS AG | USD | 21,478,186 | PHP | 1,200,237,570 | 20,775,180 | 703,006 | |
$60,170,879 | $1,596,564 | |||||||
Unrealized appreciation on forward foreign currency exchange contracts | $1,596,564 | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | $(1,623,456) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
At April 30, 2024, the Fund held the following centrally cleared interest rate swaps: |
Currency | Notional Amount | Expiration Date | Counterparty | Receive (Pay) Floating Rate | Floating Rate Index | Fixed Rate | Frequency of Paid Payments Made | Premiums Paid (Received) | Value | Unrealized Appreciation/ (Depreciation) |
USD | 25,000,000 | 03/17/2033 | Citigroup | Receive | 12-month SOFR | 3.38% | Annually | $- | $1,793,236 | $1,793,236 |
USD | 20,000,000 | 03/17/2030 | Citigroup | Receive | 12-month SOFR | 3.46% | Annually | - | 1,039,345 | 1,039,345 |
USD | 20,000,000 | 03/17/2032 | Citigroup | Receive | 12-month SOFR | 3.40% | Annually | - | 1,305,812 | 1,305,812 |
USD | 35,000,000 | 07/13/2033 | Citigroup | Receive | 12-month SOFR | 3.71% | Annually | - | 2,067,619 | 2,067,619 |
$- | $6,206,012 | $6,206,012 | ||||||||
USD | 7,000,000 | 07/13/2033 | Citigroup | Pay | 12-month SOFR | 3.71% | Annually | (247,580) | (413,610) | (166,030) |
USD | 10,000,000 | 07/13/2033 | Citigroup | Pay | 12-month SOFR | 3.71% | Annually | (626,474) | (468,220) | 158,254 |
USD | 7,000,000 | 07/13/2033 | Citigroup | Pay | 12-month SOFR | 3.71% | Annually | (418,332) | (382,212) | 36,120 |
$(1,292,386) | $(1,264,042) | $28,344 | ||||||||
$(1,292,386) | $4,941,970 | $6,234,356 |
16 | abrdn Asia-Pacific Income Fund, Inc. |
Assets | |
Investments, at value (cost $1,173,008,517) | $ 1,015,298,079 |
Short-term investments, at value (cost $4,398,394) | 4,398,394 |
Foreign currency, at value (cost $5,631,634) | 5,554,648 |
Cash | 3,401,708 |
Cash at broker for interest rate swaps | 8,231,294 |
Cash at broker for futures contracts | 2,756,748 |
Interest receivable | 17,362,806 |
Unrealized appreciation on forward foreign currency exchange contracts | 1,596,564 |
Variation margin receivable for futures contracts | 3,171,864 |
Prepaid expenses in connection with revolving credit facility and senior secured notes (Note 8) | 1,357,471 |
Prepaid expenses and other assets | 1,947 |
Total assets | 1,063,131,523 |
Liabilities | |
Senior secured notes payable (Note 7) | 250,000,000 |
Revolving credit facility payable (Note 8) | 76,000,000 |
Variation margin payable on centrally cleared swap contracts | 7,713,979 |
Payable for investments purchased | 6,000,541 |
Interest payable on revolving credit facility and senior secured notes | 3,693,212 |
Unrealized depreciation on forward foreign currency exchange contracts | 1,623,456 |
Investment management fees payable (Note 3) | 534,087 |
Administration fees payable (Note 3) | 114,686 |
Deferred foreign capital gains tax (Note 2i) | 100,720 |
Investor relations fees payable (Note 3) | 78,126 |
Other accrued expenses | 503,897 |
Total liabilities | 346,362,704 |
Net Assets Applicable to Common Shareholders | $716,768,819 |
Composition of Net Assets | |
Common stock (par value $0.010 per share) (Note 5) | $ 2,476,958 |
Paid-in capital in excess of par | 1,042,078,659 |
Accumulated loss | (327,786,798) |
Net Assets Applicable to Common Shareholders | $716,768,819 |
Net asset value per share based on 247,695,769 shares issued and outstanding | $2.89 |
abrdn Asia-Pacific Income Fund, Inc. | 17 |
Net Investment Income | |
Investment Income: | |
Interest and amortization/accretion of discount and premium and other income (net of foreign withholding taxes of $1,701,618) | $ 35,400,985 |
Total investment income | 35,400,985 |
Expenses: | |
Investment management fee (Note 3) | 3,064,917 |
Administration fee (Note 3) | 657,738 |
Bank loan fees and expenses | 220,930 |
Custodian’s fees and expenses | 177,009 |
Legal fees and expenses | 126,306 |
Investor relations fees and expenses (Note 3) | 117,365 |
Directors' fees and expenses | 109,983 |
Reports to shareholders and proxy solicitation | 103,596 |
Transfer agent’s fees and expenses | 53,635 |
Independent auditors’ fees and tax expenses | 49,409 |
Insurance expense | 25,404 |
Miscellaneous | 66,759 |
Total operating expenses, excluding interest expense | 4,773,051 |
Interest expense (Notes 7 & 8) | 7,290,259 |
Net operating expenses | 12,063,310 |
Net investment income applicable to common shareholders | 23,337,675 |
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: | |
Net realized gain/(loss) from: | |
Investments (Note 2i) | (788,344) |
Futures contracts | 1,571,275 |
Interest rate swaps | 1,339,535 |
Forward foreign currency exchange contracts | (3,209,037) |
Foreign currency transactions | 189,661 |
(896,910) | |
Net change in unrealized appreciation/(depreciation) on: | |
Investments (including change in deferred foreign capital gains tax of $17,144) (Note 2i) | 35,906,946 |
Interest rate swaps | (1,651,482) |
Futures contracts | 1,363,874 |
Forward foreign currency exchange contracts | 1,310,569 |
Foreign currency translation | (2,567,112) |
34,362,795 | |
Net realized and unrealized gain from investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currencies | 33,465,885 |
Change in Net Assets Applicable to Common Shareholders Resulting from Operations | $56,803,560 |
18 | abrdn Asia-Pacific Income Fund, Inc. |
For the Six-Month Period Ended April 30, 2024 (unaudited) | For the Year Ended October 31, 2023 | |
Increase/(Decrease) in Net Assets Applicable to Common Shareholders: | ||
Operations: | ||
Net investment income | $23,337,675 | $45,017,664 |
Net realized loss from investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currency transactions | (896,910) | (66,289,663) |
Net change in unrealized appreciation on investments, interest rate swaps, futures contracts, forward foreign currency exchange contracts and foreign currency translation | 34,362,795 | 97,914,268 |
Net increase in net assets applicable to common shareholders resulting from operations | 56,803,560 | 76,642,269 |
Distributions to Common Shareholders From: | ||
Distributable earnings | (40,869,812) | (37,925,162) |
Return of capital | – | (43,814,463) |
Net decrease in net assets applicable to common shareholders from distributions | (40,869,812) | (81,739,625) |
Change in net assets applicable to common shareholders | 15,933,748 | (5,097,356) |
Net Assets Applicable to Common Shareholders: | ||
Beginning of period | 700,835,071 | 705,932,427 |
End of period | $716,768,819 | $700,835,071 |
abrdn Asia-Pacific Income Fund, Inc. | 19 |
Cash flows from operating activities: | |
Net increase/(decrease) in net assets resulting from operations | $ 56,803,560 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
Investments purchased | (158,992,634) |
Investments sold and principal repayments | 154,914,703 |
Decrease in short-term investments, excluding foreign government | 19,636,046 |
Net amortization/accretion of premium/(discount) | (3,273,665) |
Increase in interest, dividends and other receivables | (135,783) |
Net change unrealized appreciation on forward foreign currency exchange contracts | (1,310,569) |
Decrease in prepaid expenses | 168,732 |
Decrease in interest payable on revolving credit facility | (35,871) |
Increase in accrued investment advisory fees payable | 5,248 |
Decrease in other accrued expenses | (5,497) |
Increase (decrease) in variation margin payable for futures contracts | (1,867,241) |
Net change in unrealized appreciation of investments | (35,906,946) |
Net change in unrealized depreciation on foreign currency translations | 2,567,112 |
Net realized loss on investments transactions | 788,344 |
Net cash provided by operating activities | 33,355,539 |
Cash flows from financing activities: | |
Distributions paid to common shareholders | (40,869,812) |
Cash paid for swap contracts | (277,768) |
Net cash used in financing activities | (41,147,580) |
Effect of exchange rate on cash | (35,866) |
Net change in cash | (7,827,907) |
Unrestricted and restricted cash and foreign currency, beginning of period | 27,772,305 |
Unrestricted and restricted cash and foreign currency, end of period | $19,944,398 |
Supplemental disclosure of cash flow information: | |
Cash paid for interest and fees on borrowing | $7,326,130 |
20 | abrdn Asia-Pacific Income Fund, Inc. |
Reconciliation of unrestricted and restricted cash to the statements of assets and liabilities | |
Year Ended April 30, 2024 (unaudited) | |
Cash | $ 3,401,708 |
Foreign currency, at value | 5,554,648 |
Cash at broker for interest rate swaps | 8,231,294 |
Cash at broker for futures contracts | 2,756,748 |
$19,944,398 |
abrdn Asia-Pacific Income Fund, Inc. | 21 |
For the Six-Month Period Ended April 30, | For the Fiscal Years Ended October 31, | |||||
2024 (unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |
PER SHARE OPERATING PERFORMANCE(a): | ||||||
Net asset value per common share, beginning of period | $2.83 | $2.85 | $4.38 | $4.65 | $4.88 | $4.59 |
Net investment income | 0.09 | 0.18 | 0.17 | 0.18 | 0.15 | 0.18 |
Net realized and unrealized gains/(losses) on investments, interest rate swaps, futures contracts and foreign currency transactions | 0.14 | 0.13 | (1.37) | (0.12) | (0.05) | 0.48 |
Total from investment operations applicable to common shareholders | 0.23 | 0.31 | (1.20) | 0.06 | 0.10 | 0.66 |
Distributions to common shareholders from: | ||||||
Net investment income | (0.17) | (0.15) | (0.09) | (0.18) | (0.07) | (0.12) |
Net realized gains | – | – | – | – | (0.01) | – |
Return of capital | – | (0.18) | (0.24) | (0.15) | (0.25) | (0.25) |
Total distributions | (0.17) | (0.33) | (0.33) | (0.33) | (0.33) | (0.37) |
Net asset value per common share, end of period | $2.89 | $2.83 | $2.85 | $4.38 | $4.65 | $4.88 |
Market price, end of period | $2.50 | $2.39 | $2.37 | $4.22 | $3.80 | $4.25 |
Total Investment Return Based on(b): | ||||||
Market price | 11.19% | 13.96% | (37.59%) | 19.87% | (2.82%) | 18.12% |
Net asset value | 8.55% | 12.21% | (27.70%) | 1.67% | 3.56% | 16.13% |
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data(c): | ||||||
Net assets applicable to common shareholders, end of period (000 omitted) | $716,769 | $700,835 | $705,932 | $1,085,384 | $1,151,847 | $1,208,154 |
Average net assets applicable to common shareholders (000 omitted) | $746,703 | $767,851 | $919,052 | $1,165,019 | $1,145,806 | $1,194,235 |
Net operating expenses | 3.25%(d) | 3.33% | 3.15% | 2.57% | 2.87% | 2.84% |
Net operating expenses, excluding interest expense and distributions to Series A Mandatory Redeemable Preferred Shares | 1.29%(d) | 1.29% | 1.36% | 1.16% | 1.32% | 1.22% |
Net Investment income | 6.29%(d) | 5.86% | 4.71% | 3.75% | 3.29% | 3.68% |
Portfolio turnover | 13%(e) | 21% | 26% | 44% | 88% | 46% |
Leverage (senior securities) outstanding (000 omitted) | $326,000 | $326,000 | $315,000 | $450,000 | $415,000 | $531,000 |
Leverage (preferred stock) outstanding (000 omitted) | $– | $– | $50,000 | $50,000 | $50,000 | $50,000 |
Asset coverage ratio on long-term debt obligations at period end(f) | 320% | 315% | 340% | 352% | 390% | 337% |
Asset coverage per $1,000 on long-term debt obligations at period end | $3,199 | $3,150 | $3,400 | $3,523 | $3,896 | $3,369 See Accompanying Notes to Financial Statements.
|
22 | abrdn Asia-Pacific Income Fund, Inc. |
For the Six-Month Period Ended April 30, | For the Fiscal Years Ended October 31, | |||||
2024 (unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |
Asset coverage ratio on total leverage at period end(g) | 320% | 315% | 293% | 317% | 348% | 308% |
Asset coverage per $1,000 on total leverage at period end | $3,199 | $3,150 | $2,934 | $3,171 | $3,477 | $3,079 |
(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 period ended April 30, 2024, the Fund did not hold any preferred stock. For the fiscal years ended October 31, 2023, 2022, 2021, 2020, 2019, the ratios of net investment income before preferred stock dividends to average net assets of common shareholders were 5.95%, 4.91%, 3.93%, 3.47% and 3.85% respectively. |
(d) | Annualized. |
(e) | Not annualized. |
(f) | Asset coverage ratio is calculated by dividing net assets as of each fiscal period end plus the amount of any borrowings, including Series A Mandatory Redeemable Preferred Shares, for investment purposes outstanding as of each fiscal period end by the amount of any long-term debt obligations, which includes the senior secured notes and revolving credit facility outstanding as of each fiscal period end. |
(g) | Asset coverage ratio is calculated by dividing net assets as of each fiscal period end plus the amount of any borrowings for investment purposes outstanding as of each fiscal period end by the amount of any borrowings as of each fiscal period end, and then multiplying by $1,000. |
abrdn Asia-Pacific Income Fund, Inc. | 23 |
April 30, 2024
24 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
abrdn Asia-Pacific Income Fund, Inc. | 25 |
April 30, 2024
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. |
Swap agreements | Market information pertaining to the underlying reference assets, i.e., credit spreads, credit event probabilities, fair values, forward rates, and volatility measures. |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Assets | ||||
Investments in Securities | ||||
Corporate Bonds | $– | $533,563,597 | $– | $533,563,597 |
Government Bonds | – | 481,734,482 | – | 481,734,482 |
Short-Term Investment | 4,398,394 | – | – | 4,398,394 |
Total Investments | $4,398,394 | $1,015,298,079 | $– | $1,019,696,473 |
Other Financial Instruments | ||||
Centrally Cleared Interest Rate Swap Agreements | $– | $6,400,386 | $– | $6,400,386 |
Foreign Currency Exchange Contracts | – | 1,596,564 | – | 1,596,564 |
Futures Contracts | 434,117 | – | – | 434,117 |
Total Other Financial Instruments | 434,117 | 7,996,950 | – | 8,431,067 |
Total Investment Assets | $4,832,511 | $1,023,295,029 | $– | $1,028,127,540 |
Liabilities | ||||
Other Financial Instruments | ||||
Centrally Cleared Interest Rate Swap Agreements | $– | $(166,030) | $– | $(166,030) |
Foreign Currency Exchange Contracts | – | (1,623,456) | – | (1,623,456) |
Futures Contracts | (3,167,263) | – | – | (3,167,263) |
Total Investment Liabilities | $(3,167,263) | $(1,789,486) | $– | $(4,956,749) |
26 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
abrdn Asia-Pacific Income Fund, Inc. | 27 |
April 30, 2024
28 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
Risk Exposure Category | |||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Other | Total | |
Assets: | |||||||
Unrealized appreciation on: | |||||||
Forward Foreign Currency Exchange Contracts | $– | $1,596,564 | $– | $– | $– | $– | $1,596,564 |
Futures Contracts | 434,117 | – | – | – | – | – | 434,117 |
Swap Contracts | 6,400,386 | – | – | – | – | – | 6,400,386 |
Total | $6,834,503 | $1,596,564 | $– | $– | $– | $– | $8,431,067 |
Liabilities: | |||||||
Unrealized depreciation on: | |||||||
Forward Foreign Currency Exchange Contracts | $– | $1,623,456 | $– | $– | $– | $– | $1,623,456 |
Futures Contracts | 3,167,263 | – | – | – | – | – | 3,167,263 |
Swap Contracts | 166,030 | – | – | – | – | – | 166,030 |
Total | $3,333,293 | $1,623,456 | $– | $– | $– | $– | $4,956,749 |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | Gross Amounts Not Offset in the Statement of Assets and Liabilities | |||||||
Gross Amounts of Assets Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received(1) | Net Amount(2) | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged(1) | Net Amount(2) | |
Description | Assets | Liabilities | ||||||
Foreign Currency Exchange Contracts(3) | ||||||||
Citibank N.A. | $– | $– | $– | $– | $981,907 | $– | $– | $981,907 |
HSBC Bank USA | 197,366 | (20,193) | – | 177,173 | 20,193 | (20,193) | – | – |
Standard Chartered Bank | 86,818 | (86,818) | – | – | 366,596 | (86,818) | – | 279,778 |
UBS AG | 1,312,380 | (254,760) | – | 1,057,620 | 254,760 | (254,760) | – | – |
abrdn Asia-Pacific Income Fund, Inc. | 29 |
April 30, 2024
(1) | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
(2) | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master netting agreement with the same legal entity. |
(3) | Includes financial instrument which are not subject to a master netting arrangement across funds, or another similar arrangement. |
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 | $1,571,275 | $– | $– | $– | $– | $1,571,275 |
Forward Currency Contracts | – | (3,209,037) | – | – | – | (3,209,037) |
Swap Contracts | 1,339,535 | – | – | – | – | 1,339,535 |
Total | $2,910,810 | $(3,209,037) | $– | $– | $– | $(298,227) |
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized as a Result of Operations: | ||||||
Net change in unrealized appreciation/(depreciation) of: | ||||||
Futures Contracts | $1,363,874 | $– | $– | $– | $– | $1,363,874 |
Forward Currency Contracts | – | 1,310,569 | – | – | – | 1,310,569 |
Swap Contracts | (1,651,482) | – | – | – | – | (1,651,482) |
Total | $(287,608) | $1,310,569 | $– | $– | $– | $1,022,961 |
30 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
abrdn Asia-Pacific Income Fund, Inc. | 31 |
April 30, 2024
32 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
Series | Maturity Date | Interest Rate | Notional/ Carrying Amount | Estimated Fair Value |
Series C | February 8, 2032 | 3.87% | $50,000,000 | $44,440,803 |
Series D | August 10, 2032 | 3.70% | $100,000,000 | $87,163,866 |
Series E | June 19, 2034 | 3.73% | $100,000,000 | $85,320,973 |
abrdn Asia-Pacific Income Fund, Inc. | 33 |
April 30, 2024
34 | abrdn Asia-Pacific Income Fund, Inc. |
April 30, 2024
abrdn Asia-Pacific Income Fund, Inc. | 35 |
April 30, 2024
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
$1,200,614,627 | $15,603,980 | $(193,047,815) | $(177,443,835) |
36 | abrdn Asia-Pacific Income Fund, Inc. |
abrdn Asia-Pacific Income Fund, Inc. | 37 |
38 | abrdn Asia-Pacific Income Fund, Inc. |
![](https://www.sec.gov/Archives/edgar/data/0000790500/000110465924078331/tm2416313d19reporti004.jpg)
(b) Not applicable.
Item 2. Code of Ethics.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 3. Audit Committee Financial Expert.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 4. Principal Accountant Fees and Services.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 6. Investments.
(a) Schedule of Investments in securities of unaffiliated issuers as of close of the reporting period is 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.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable to semi-annual report on Form N-CSR. |
(b) | There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Period | (a) Total No. of Shares Purchased | (b) Average Price Paid per Share | (c) Total No. of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | (d) Maximum No. of Shares that May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||
Month #1 (Nov. 1, 2023 — Nov. 30, 2023) | — | — | — | 23,613,218 | ||||||||||||
Month #2 (Dec. 1, 2023 — Dec. 31, 2023) | — | — | — | 23,613,218 | ||||||||||||
Month #3 (Jan. 1, 2024 — Jan. 31, 2024) | — | — | — | 23,613,218 | ||||||||||||
Month #4 (Feb. 1, 2024 — Feb. 29, 2024) | — | — | — | 23,613,218 | ||||||||||||
Month #5 (Mar. 1, 2024 — Mar. 31, 2024) | — | — | — | 23,613,218 | ||||||||||||
Month #6 (Apr. 1, 2024 — Apr. 30, 2024) | — | — | — | 23,613,218 | ||||||||||||
Total | — | — | — |
(1) | On March 1, 2001, the Board of Trustees approved an open market share repurchase program (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund’s investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. On a quarterly basis, the Fund’s Board will receive information on any transactions made pursuant to this policy during the prior quarter and management will post the number of shares repurchased on the Fund's website on a monthly basis. Under the terms of the Program, the Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market during any 12 month period as of October 31 of the prior year. For the period ended April 30, 2024, the Fund did not repurchase any shares through this program. |
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended April 30, 2024, 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 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. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 14. Exhibits.
(a)(1) | Not applicable. |
(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) | 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 (c)(1), (c)(2), (c)(3), (c)(4), (c)(5), (c)(6), (c)(7), (c)(8), (c)(9), (c)(10), (c)(11) and (c)(12) 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/ Alan Goodson | |
Alan Goodson, | ||
Principal Executive Officer of | ||
abrdn Asia-Pacific Income Fund, Inc. |
Date: July 8, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Alan Goodson | |
Alan Goodson, | ||
Principal Executive Officer of | ||
abrdn Asia-Pacific Income Fund, Inc. |
Date: July 8, 2024
By: | /s/ Sharon Ferrari | |
Sharon Ferrari, | ||
Principal Financial Officer of | ||
abrdn Asia-Pacific Income Fund, Inc. |
Date: July 8, 2024