The Fund's total returns for various periods through July 31, 2009 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 630.3 8.9 600.4 8.7
(April 1986) ----- --- ----- ---
-----------
10-years 126.8 8.5 114.7 7.9
-------- ----- --- ----- ---
5-years 47.0 8.0 43.6 7.5
------- ---- --- ---- ---
3-years 20.5 6.4 22.4 7.0
------- ---- --- ---- ---
1-year -0.5 7.2
------ ---- ---
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 July 31, 2009, the portfolio was invested as follows:
Currency Exposure % Geographic Exposure %
------------------ --------------------
Australia 43.5 49.5
--------- ---- ----
New Zealand 0.7 0.7
----------- --- ---
United States* 37.0 0.6
------------- ---- ---
South Korea 4.0 13.5
----------- --- ----
Philippines 1.6 7.7
----------- --- ---
Malaysia 2.2 3.7
-------- --- ---
Singapore 2.9 3.6
--------- --- ---
Thailand 1.6 3.0
-------- --- ---
Hong Kong 1.9 6.2
--------- --- ---
Indonesia 1.6 7.4
--------- --- ---
China 2.1 0.9
----- --- ---
India 0.9 3.2
----- --- ---
* Of which 33.2% is invested in US$ denominated bonds issued by foreign
issuers.
As of July 31, 2009, the top ten holdings of the portfolio were as follows:
Holding Coupon / Maturity (%)
------- ------------------- ---
Western Australia Treasury Corporation 8.00%, 06/15/2013 6.6
-------------------------------------- ------------------- ---
Western Australia Treasury Corporation 8.00%, 07/15/2017 4.2
-------------------------------------- ------------------- ---
Queensland Treasury Corporation 6.00%, 10/14/2015 2.7
------------------------------- ------------------- ---
Kreditanstalt fuer Wiederaufbau 7.50%, 08/26/2011 1.7
------------------------------- ------------------- ---
International Finance Corporation 7.50%, 02/28/2013 1.6
--------------------------------- ------------------- ---
Commonwealth Bank of Australia 8.50%, 06/24/2011 1.6
------------------------------ ------------------- ---
Queensland Treasury Corporation 6.50%, 04/16/2012 1.5
------------------------------- ------------------- ---
Commonwealth Bank of Australia 8.50%, 06/24/2011 1.5
------------------------------ ------------------- ---
Korea Treasury Bond 6.91%, 07/18/2011 1.4
------------------- ------------------- ---
Treasury Corporation of Victoria 6.25%, 10/15/2012 1.4
-------------------------------- ------------------- ---
TOTAL 24.2
----- ----
As of July 31, 2009 the holdings of the portfolio represented approximately 42.1% sovereign and state government securities, 0.7% supranationals, 54.7% corporates, 0.7% cash and 1.8% asset backed securities.
As of July 31, 2009, the Fund's net assets, including $550 million in bank borrowing, amounted to US$2,153 million with a net asset value per share of US$6.09.
As of July 31, 2009, 70.6% of the portfolio was invested in securities where either the issue or the issuer was rated "A" or better, or judged by the Investment Manager to be of equivalent quality. The credit quality and maturity breakdown of the portfolio was as follows:
Credit Quality (%)
-----------------
AAA/Aaa AA/Aa A BBB/Baa BB/Ba B
------- ----- ---- ------- ----- ---
25.2 14.9 30.5 10.4 17.7 1.3
---- ---- ---- ---- ---- ---
As of July 31, 2009, the average credit quality of the portfolio was A+.
Maturity (%)
-----------
<3 Years 3-5 Years 5-10 Years >10 Years
-------- --------- ---------- ---------
29.4 24.9 34.9 10.8
---- ---- ---- ----
As of July 31, 2009, the average maturity of the portfolio was 7.2 years.
A revolving credit loan facility, in the amount of $600,000,000, was entered into on April 18, 2008 with the Bank of Nova Scotia, in order to fund the redemption of the Fund's Auction Market Preferred Stock ("AMPS") that took place in April 2008. The outstanding balance on the loan as of July 31, 2009 is $550,000,000 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 emerging market fixed income securities in which the Fund invests. The Fund has entered into interest rate swap agreements in order to fix the interest payable on an aggregate notional amount of $412.5 million, which represents 75% of the bank loan facility. 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 Fund's 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 Management Asia Limited (the Investment Manager), Aberdeen Asset Management Limited (the Investment 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. Aberdeen is a U.S. registered service mark of Aberdeen Asset Management PLC.
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. Inception date April 25, 1986.
If you wish to receive this information electronically, please contact: InvestorRelations@aberdeen-asset.com'>InvestorRelations@aberdeen-asset.com