Welcome to our dedicated page for abrdn Income Credit Strategies Fund news (Ticker: ACP), a resource for investors and traders seeking the latest updates and insights on abrdn Income Credit Strategies Fund stock.
abrdn Income Credit Strategies Fund (ACP) is a diversified, closed-end management investment company listed on the New York Stock Exchange under the symbol ACP. The primary investment objective of ACP is to seek a high level of current income, with a secondary objective of capital appreciation. The Fund predominantly invests in debt and loan instruments across various industries and geographic regions, providing a diversified portfolio that aims to maximize returns while managing risks.
Recently, ACP has been involved in significant corporate actions aimed at enhancing shareholder value. On October 23, 2023, the Board of Trustees announced the proposed reorganization of several closed-end investment companies advised by First Trust Advisors, L.P. into ACP. This strategic move, subject to shareholder approval, is designed to increase the Fund's scale, liquidity, and marketability, potentially leading to a tighter discount or a premium to NAV over time. The reorganization is expected to be completed by the first quarter of 2024.
Financially, ACP is committed to maintaining a stable distribution policy. For example, on December 11, 2023, ACP declared a cash distribution of $0.328125 per share for its 5.250% Series A Perpetual Preferred Shares (NYSE:ACP PRA), payable on January 2, 2024. This highlights ACP's consistent approach to delivering value to its shareholders.
abrdn, the marketing name for several affiliated, registered investment advisers, manages ACP. These advisers include abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, abrdn Private Equity (Europe) Limited, and abrdn ETFs Advisors LLC. The Fund's performance and returns are subject to fluctuations in market conditions, and past performance does not guarantee future results.
In summary, ACP offers investors an opportunity to gain exposure to a diversified portfolio of debt and loan instruments with a focus on high current income and capital appreciation. The Fund's proactive management and strategic initiatives aim to enhance shareholder value and ensure long-term viability.
abrdn U.S. Closed-End Funds (NYSE:ASGI, THQ) announced their latest distribution payments on January 31, 2025. ASGI (abrdn Global Infrastructure Income Fund) distributed $0.2000 per share, while THQ (abrdn Healthcare Opportunities Fund) distributed $0.1800 per share to shareholders of record as of January 24, 2025.
The funds' performance metrics show that ASGI achieved a 7.36% average annual total return on NAV for the 5-year period ending December 31, 2024, with a current fiscal period's annualized distribution rate of 12.60%. THQ reported a 6.73% average annual total return with a 10.84% annualized distribution rate.
For ASGI's current distribution, approximately 4% came from net investment income, 1% from short-term gains, 41% from long-term gains, and 54% from return of capital. THQ's distribution was entirely (100%) from long-term gains. Both funds maintain distribution policies aimed at providing stable income through current earnings, realized capital gains, and paid-in capital when necessary.
abrdn Asia-Pacific Income Fund VCC (TSX:FAP) has announced its 2025 voluntary cash redemption details and a special shareholder meeting proposal. The redemption date is set for March 31, 2025, allowing shareholders to redeem shares at 100% of the Average NAV of the three trading days preceding the redemption date, minus direct costs (expected below 1%).
The company will hold a Special Meeting on March 7, 2025, where shareholders will vote on amendments to eliminate the current 10% cap on annual redemptions, potentially allowing up to 100% redemption starting 2026. Additionally, the amendments would give the board discretion to terminate the company if deemed economically impractical to continue.
Key dates include: February 3-March 10, 2025 for share tendering, March 26-28, 2025 for redemption price determination, March 31, 2025 as redemption date, and April 17, 2025 for redemption proceeds payment.
Abrdn Income Credit Strategies Fund has announced a quarterly cash distribution of $0.328125 per share for its 5.250% Series A Perpetual Preferred Shares (NYSE:ACP PRA). The distribution will be paid on December 31, 2024, to shareholders of record as of December 20, 2024. The Series A Preferred Shares, rated A2 by Moody's, were initially issued on May 10, 2021, at $25.00 per share and provide an annual dividend rate of $1.3125 per share.
Distributions may come from various sources including ordinary income, capital gains, and return of capital. Shareholders will receive Form 1099-DIV in January 2025 detailing the tax treatment of these distributions for the 2024 calendar year.
abrdn Income Credit Strategies Fund (ACP) has announced a reduction in its monthly distribution from US 10 cents to US 7.75 cents per share, effective January 10, 2025. This adjustment changes the annualized distribution rate from 18% to 14% based on NAV as of December 9, 2024. The Fund intends to maintain this new distribution level for at least the next 12 months, barring significant market changes.
The Investment Adviser believes this reduced distribution better reflects the Fund's sustainable earnings. The decision considers current earnings, economic outlook, and tightened credit spreads. Despite the reduction, the Board and Investment Adviser remain committed to maintaining a premium income level within their peer group.
abrdn U.S. Closed-End Funds announced distributions for ASGI and THQ funds, paid on November 29, 2024. abrdn Global Infrastructure Income Fund (ASGI) distributed $0.2100 per share, while abrdn Healthcare Opportunities Fund (THQ) distributed $0.1800 per share. The distributions were paid to shareholders of record as of November 21, 2024.
For ASGI, the distribution comprised 6% net investment income, 8% net realized long-term gains, and 86% return of capital. THQ's distribution included 15% net realized short-term gains and 85% return of capital. ASGI reported a 5-year average annual total return of 8.46%, while THQ showed 9.55% for the same period.
abrdn Asia-Pacific Income Fund VCC (TSX:FAP) announced a monthly distribution of CAD 1.75 cents per share, payable on November 29, 2024, to shareholders of record as of November 21, 2024. The company has paid total distributions of CAD 21.0 cents per ordinary share for the 12 months to October 31, 2024. As a Singapore-domiciled company, all distributions will be treated as foreign income for Canadian tax purposes. The current fiscal year distribution comes entirely from earnings, with no excess distribution over available net investment income.
abrdn National Municipal Income Fund (NYSE American:VFL) held its Annual Meeting of Shareholders on September 30, 2024. Shareholders voted to re-elect the Board of Trustees. As of the record date, August 6, 2024, the Fund had 12,278,003 outstanding common shares and 990 outstanding preferred shares. 82.83% of common shares and 100% of preferred shares were voted, representing a quorum.
The election results were as follows:
- Christian Pittard: 9,823,801 votes for, 346,551 votes against/withheld
- Todd Reit: 9,843,574 votes for, 326,778 votes against/withheld
- Nancy Yao (preferred only): 990 votes for
- C. William Maher (preferred only): 990 votes for
The Board of Trustees of abrdn Income Credit Strategies Fund has declared a quarterly cash distribution of $0.328125 per share for its 5.250% Series A Perpetual Preferred Shares (NYSE:ACP PRA). The distribution is payable on September 30, 2024, to shareholders of record on September 20, 2024. The Series A Preferred Shares, rated 'A2' by Moody's, have an annual dividend rate of $1.3125 per share and were initially issued at $25.00 per share on May 10, 2021. The Fund notes that distributions may come from various sources, including short-term and long-term capital gains or return of capital. Shareholders will receive a Form 1099-DIV in January 2025 detailing the tax treatment of these distributions.
The abrdn Global Infrastructure Income Fund (NYSE:ASGI) announced a distribution of $0.2100 per share, payable on September 30, 2024, to shareholders of record as of September 20, 2024. The fund follows a managed distribution policy to provide stable income. The distribution sources are estimated as:
- 14% from net investment income
- 56% from net realized long-term gains
- 30% from return of capital
ASGI's 5-year average annual total return on NAV is 9.26%, with a current fiscal period's annualized distribution rate on NAV of 9.56%. Shareholders are advised not to draw conclusions about the fund's performance from the distribution amount or policy.
The abrdn Total Dynamic Dividend Fund (NYSE:AOD) announced that the proposed acquisition of assets from First Trust Specialty Finance and Financial Opportunities Fund (NYSE:FGB) did not proceed as planned. At the adjourned special meeting of FGB shareholders on August 29, 2024, the required 1940 Act quorum was not attained, resulting in insufficient votes to pass the reorganization proposal. This outcome means that the proposed asset transfer between the two funds will not take place as initially intended.
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