Aberdeen Income Credit Strategies Fund(1) Announces Performance Data And Portfolio Composition

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.

Aberdeen Asset Management Inc. At Aberdeen, asset management is our business. We only manage assets for clients, allowing us to focus solely on their needs and deliver independent, objective investment advice. We know global markets from the local level upwards, drawing on more than 1,900 staff, across 32 offices in 23 countries. Investment teams are based in the markets or regions where they invest, delivering local perspective in a global investment environment. (PRNewsFoto/Aberdeen Asset Management Inc.)

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

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