PHILADELPHIA, March 23, 2018 /PRNewswire/ -- Aberdeen
Income Credit Strategies Fund1 (the
"Fund") (NYSE: ACP), a closed-end bond fund,
announced today its performance data and portfolio composition as
of February 28, 2018.
The Fund's total returns for various periods through
February 28, 2018 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)
|
58.9
|
6.8
|
39.1
|
4.8
|
10-years
|
N/A
|
N/A
|
N/A
|
N/A
|
5-years
|
34.4
|
6.1
|
25.3
|
4.6
|
3-years
|
26.4
|
8.1
|
24.2
|
7.5
|
1-year
|
6.6
|
7.3
|
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 February 28, 2018, the
portfolio was invested as follows:
|
Currency Exposure
%
|
Geographic
Exposure %
|
United
Kingdom
|
-
|
11.8
|
|
|
|
United
States
|
100.0*
|
63.5
|
|
|
|
Europe
|
-
|
21.3
|
Africa
|
-
|
0.8
|
Caribbean
|
-
|
1.9
|
Middle
East
|
-
|
0.7
|
As of February 28, 2018, the
portfolio was invested as follows:
Portfolio
Composition
|
Percent of
Net Assets
|
Energy
|
23.5
|
Consumer
Discretionary
|
19.0
|
Health
Care
|
18.0
|
Materials
|
9.1
|
Telecommunication
Services
|
7.6
|
Financials
|
5.9
|
Utilities
|
3.2
|
Information
Technology
|
2.0
|
Capital
Goods
|
2.0
|
Other
|
1.2
|
Cash
|
8.5
|
As of February 28, 2018, the top
ten holdings of the portfolio based on total assets were as
follows:
Holding
|
(%)
|
Community Health
Systems
|
4.7
|
Altice
|
4.5
|
EP Energy LLC/Everest
Acquisition Finance Inc.
|
4.0
|
California Resources
Corporation
|
3.4
|
Sable Permian
Resources LLC
|
3.1
|
Hexion
Inc.
|
3.0
|
Valeant
Pharmaceuticals International Inc.
|
2.6
|
Voyage Care BondCo
PLC
|
2.5
|
Talen Energy Supply
LLC
|
2.2
|
VRX Escrow
Corp.
|
2.2
|
TOTAL
|
32.2
|
As of February 28, 2018, the
Fund's net assets, including US$83.0
million in bank borrowing, amounted to US$281.4 million with a net asset value per share
of common stock of US$15.18.
As of February 28, 2018, 8.3% 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
|
BBB
|
BB
|
B
|
CCC
|
CC
|
NR
|
8.3
|
0.5
|
1.4
|
34.7
|
45.8
|
5.6
|
3.7
|
Maturity
(%)
|
<3
Years
|
3-5 Years
|
5-10 Years
|
>>10
Years
|
24.3
|
36.1
|
38.0
|
1.7
|
As of February 28, 2018, the
average maturity of the portfolio was 3.7 years.
The Fund has in place leverage in the form of a loan
facility. The outstanding balance on the loan as of
February 28, 2018 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
1As of December 1,
2017, the Fund name changed from the Avenue Income Credit
Strategies Fund.
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SOURCE Aberdeen Income Credit Strategies Fund