Aberdeen Income Credit Strategies Fund Announces Performance Data And Portfolio Composition
PHILADELPHIA, Feb. 2, 2018 /PRNewswire/ -- Aberdeen Income Credit Strategies Fund (the "Fund") (NYSE American: ACP), a closed-end bond fund, announced today its performance data and portfolio composition as of December 31, 2017.
The Fund's total returns for various periods through December 31, 2017 are provided below. (All figures are based on distributions reinvested at the dividend reinvestment price, and are stated net-of-fees):
Period | NAV Total Return % | Market Price Total Return % | ||
Cumulative | Annualized | Cumulative | Annualized | |
Since Inception (January 2011) | 55.3 | 6.6 | 38.8 | 4.9 |
10-years | N/A | N/A | N/A | N/A |
5-years | 36.0 | 6.3 | 30.6 | 5.5 |
3-years | 26.3 | 8.1 | 28.3 | 8.7 |
1-year | 9.5 | 15.3 | ||
The Fund's returns, which are denominated in U.S. dollars, are affected by the performance of the U.S. dollar against the various currencies listed below.
As of December 31, 2017, the portfolio was invested as follows:
Currency Exposure % | Geographic Exposure % | |
United Kingdom | - | 2.5 |
United States | 100.0 | 84.3 |
Europe | - | 11.4 |
Caribbean | - | 1.8 |
As of December 31, 2017, the portfolio was invested as follows:
Portfolio Composition | Percent of |
Energy | 21.9 |
Consumer Discretionary | 19.9 |
Health Care | 18.2 |
Telecommunication Services | 10.2 |
Materials | 10.0 |
Utilities | 7.9 |
Financials | 5.2 |
Information Technology | 4.3 |
Capital Goods | 0.8 |
Quasi Sovereign | 0.1 |
Cash | 1.6 |
As of December 31, 2017, the Fund's net assets, including US$83.0 million in bank borrowing, amounted to US$279.0 million with a net asset value per share of common stock of US$14.99.
As of December 31, 2017, 1.7% of the portfolio was invested in securities where either the issue or the issuer was rated "A" or better by multiple rating agencies. The credit quality and maturity breakdown of the portfolio was as follows:
Credit Quality (%) | |||||||||
AAA | BB | B | CCC | CC | D | NR | |||
1.7 | 8.6 | 37.0 | 39.4 | 5.6 | 4.2 | 3.5 | |||
Maturity (%) | |||
<3 Years | 3-5 Years | 5-10 Years | >>10 Years |
15.1 | 34.0 | 48.3 | 2.6 |
The Fund has in place leverage in the form of a loan facility. The outstanding balance on the loan as of December 31, 2017 is US$83,000,000, which represents no change from the previous month.
The leverage is used with the intent of enhancing returns by borrowing at interest rates that are lower than the relatively higher yields of the fixed income securities in which the Fund invests. Details regarding the revolving credit loan facility and the interest rate swap agreements are contained in the Fund's annual and semi-annual reports to shareholders.
Important Information
Aberdeen Asset Management Inc. (the "Administrator") has prepared this report based on information sources believed to be accurate and reliable. However, the figures are unaudited and neither the Fund, the Administrator, Aberdeen Asset Managers Limited (the "Investment Manager"), Aberdeen Asset Management Limited (the "Investment Adviser"), Aberdeen Asset Managers Limited (the "Sub-Adviser"), nor any other person guarantees their accuracy. Investors should seek their own professional advice and should consider the investment objectives, risks, charges and expenses before acting on this information. The Investment Manager, Investment Adviser, Sub-Adviser and Administrator are each a subsidiary of Aberdeen Asset Management PLC ("Aberdeen PLC").
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective.
Total return figures with distributions reinvested at the dividend reinvestment price are stated net-of-fees and represents past performance. Past performance is not indicative of future results, current performance may be higher or lower. Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown. Inception date January 27, 2011.
If you wish to receive this information electronically, please contact InvestorRelations@aberdeenstandard.com
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SOURCE Aberdeen Income Credit Strategies Fund
