At close Jul, 22 2014
NAV and prices are provided by Morningstar. This information is unaudited and neither Aberdeen Asset Management PLC, its wholly owned subsidiaries, the Funds, nor any other person guarantees their accuracy.
Aberdeen Asia-Pacific Income Investment Company Limited (TSX: FAP)
The investment objective of the Company is to obtain current income and achieve incidental capital appreciation from investment in long-term debt securities. The Company may invest up to 80% of total assets in securities issued by Asian entities.
Manager's Monthly Report
- Asian fixed income markets rose in May, buoyed by a U.S. Treasury rally that saw 10-year yields fall sharply.
Major central banks signaled that they would keep monetary policy accommodative in an effort to support
growth. In Asia, first-quarter gross domestic product (GDP) moderated in some economies, while other leading
indicators were mixed.
- In Thailand, a military coup helped stabilize the political turmoil and raised expectations of an economic
recovery, which may potentially increase capital imports and debt issuance. Consequently, both Thai bonds and
the nation’s currency, the baht, were the worst regional performers.
- Indonesia’s presidential race tightened, as front-runner Joko Widodo will now face a stronger rival after the
Golkar party threw its weight behind his main rival, Prabowo Subianto. The government revised the fiscal deficit
to 2.5% from 1.7% of GDP. The bond market closed flat but the rupiah fell against the U.S. dollar.
- In India, Narendra Modi’s landslide election victory stoked optimism over reform prospects and a revival of
investment. This lifted the bond market and the rupee, which outperformed other regional currencies.
- Australian government bonds rallied during the month, with 10-year yields falling more steeply than their threeyear
counterparts. Economic data were mixed. The central bank left the cash rate unchanged and retained a more
neutral stance, indicating a period of stability. Corporate credits delivered modest returns, led by non-financials.
Among new issues, ANZ and National Australia Bank launched benchmark five-year senior unsecured bonds in the
investment-grade segment, while Qantas raised A$300 million via the sale of high yield bonds.
In order to achieve its investment objective, the Company may invest up to 80% of its total assets in "Asian-Pacific debt securities", and may be denominated in an Asian-Pacific Country currency or in Australian, New Zealand or U.S. dollars. At least 20% of the Company's total assets will be invested in "Australian debt securities".
The information contained above provides only a brief summary description of the Company's investment objective and investment policies. Please contact Investor Relations should you wish to receive more detailed information regarding the Company.
Shareholders should consult with their tax advisors regarding the taxation of dividends received on shares of the Company and any disposition of shares of the Company. In general, dividends received by a Canadian resident holder of shares of the Company (including dividends reinvested in shares of the Company) must be included in computing the income of the holder for Canadian tax purposes. The gross-up and dividend tax credit rules applicable to dividends received from taxable Canadian corporations will not be applicable, as the Company is not a Canadian corporation.
The Fund pays dividends monthly out of net investment income and realized capital gains, and to the extent necessary, paid in capital.