UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
|
Investment Company Act file number: |
811-22485 |
|
|
|
|
Exact name of registrant as specified in charter: |
Aberdeen Income Credit Strategies Fund |
|
|
|
|
Address of principal executive offices: |
1735 Market Street, 32nd Floor |
|
|
Philadelphia, PA 19103 |
|
|
|
|
Name and address of agent for service: |
Ms. Andrea Melia |
|
|
Aberdeen Standard Investments Inc. |
|
|
1735 Market Street 32nd Floor |
|
|
Philadelphia, PA 19103 |
|
|
|
|
Registrant’s telephone number, including area code: |
800-522-5465 |
|
|
|
|
Date of fiscal year end: |
October 31 |
|
|
|
|
Date of reporting period: |
January 31, 2019 |
Item 1 - Schedule of Investments - The Schedule of Investments for the three-month period ended January 31, 2019 is filed herewith.
Portfolio of Investments (unaudited)
As of January 31, 2019
|
Principal |
|
Description |
|
Value |
| ||
|
COMMON STOCK —0.0% |
|
|
| ||||
|
CANADA—0.0% |
|
|
| ||||
|
CAD |
133 |
|
Connacher Oil & Gas Ltd., Zero Coupon, (a)(b)(c) |
|
$ |
— |
|
|
|
|
— |
| ||||
|
|
|
Total Common Stocks — —% (cost $4,002,997) |
|
— |
| ||
|
BANK LOANS—12.7% |
|
|
| ||||
|
CANADA—0.0% |
|
|
| ||||
|
USD |
1,519 |
|
Southern Pacific Resource Corp., Zero Coupon, 03/31/2019 (a)(b)(c)(d) |
|
— |
| |
|
|
|
|
|
|
|
| |
|
FRANCE—0.3% |
|
|
| ||||
|
EUR |
500 |
|
Financiere CEP, 8.50%, 12/15/2025 (e) |
|
550,839 |
| |
|
|
|
|
|
|
|
| |
|
UNITED KINGDOM—5.6% |
|
|
| ||||
|
EUR |
4,000 |
|
EG Finco Limited, 8.75%, 04/20/2026 (e) |
|
4,446,769 |
| |
|
USD |
6,127 |
|
Seadrill Partners Finco LLC, 8.80%, 02/21/2021 (e) |
|
4,925,580 |
| |
|
|
|
|
|
9,372,349 |
| ||
|
UNITED STATES—6.8% |
|
|
| ||||
|
USD |
8,330 |
|
California Resources Corporation, 12.87%, 12/31/2021 (e) |
|
8,694,437 |
| |
|
USD |
4,000 |
|
La Paloma Generating Co., LLC, Zero Coupon, 02/20/2020 (a)(b)(c)(d) |
|
200,000 |
| |
|
USD |
2,400 |
|
Verifone Systems, Inc., 10.64%, 08/20/2026 |
|
2,348,400 |
| |
|
|
|
|
|
11,242,837 |
| ||
|
|
|
Total Bank Loans — 12.7% (cost $26,322,837) |
|
21,166,025 |
| ||
|
|
|
|
|
|
| ||
|
CORPORATE BONDS—123.4% |
|
|
| ||||
|
CANADA—1.2% |
|
|
| ||||
|
USD |
2,753 |
|
Calfrac Holdings LP, 8.50%, 06/15/2021 (f) |
|
2,064,750 |
| |
|
|
|
|
|
|
|
| |
|
DENMARK—1.5% |
|
|
| ||||
|
USD |
2,700 |
|
Danske Bank AS, 7.00%, 06/26/2025 (e)(f)(g) |
|
2,457,000 |
| |
|
|
|
|
| ||||
|
FRANCE—9.4% |
|
|
| ||||
|
EUR |
500 |
|
Casino Guichard Perrachon SA, 1.87%, 03/13/2022 (f) |
|
532,239 |
| |
|
EUR |
1,000 |
|
Casino Guichard Perrachon SA, 4.56%, 01/25/2023 (f) |
|
1,119,030 |
| |
|
EUR |
3,000 |
|
Constantin Investissement 3 SASU, 5.38%, 04/15/2020 (f) |
|
3,298,068 |
| |
|
EUR |
2,200 |
|
Getlink SE, 3.63%, 10/01/2020 (f) |
|
2,562,158 |
| |
|
EUR |
423 |
|
La Financiere Atalian SASU, 4.00%, 05/15/2020 (f) |
|
374,526 |
| |
|
EUR |
3,717 |
|
La Financiere Atalian SASU, 5.13%, 05/15/2021 (f) |
|
3,286,583 |
| |
|
EUR |
1,656 |
|
Newco GB SAS, 8.00%, 12/15/2019 (f)(h) |
|
1,921,614 |
| |
|
USD |
2,500 |
|
Societe Generale SA, 7.88%, 12/18/2023 (f)(g) |
|
2,560,875 |
| |
|
|
|
|
|
15,655,093 |
| ||
|
GERMANY—1.8% |
|
|
| ||||
|
EUR |
5,000 |
|
Senvion Holding GmbH, 3.88%, 05/01/2019 (f) |
|
2,975,638 |
| |
|
|
|
|
|
|
|
| |
|
GREECE—2.1% |
|
|
| ||||
|
EUR |
1,500 |
|
Intralot Capital Luxembourg SA, 5.25%, 09/15/2020 (e)(f) |
|
1,180,753 |
| |
|
EUR |
2,500 |
|
Intralot Capital Luxembourg SA, 6.75%, 03/04/2019 (f) |
|
2,312,091 |
| |
|
|
|
|
|
3,492,844 |
| ||
|
ITALY—1.6% |
|
|
| ||||
|
EUR |
2,000 |
|
Telecom Italia Finance SA, 7.75%, 01/24/2033 |
|
2,753,522 |
| |
See Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (continued)
As of January 31, 2019
|
Principal |
|
Description |
|
Value |
| ||
|
CORPORATE BONDS (continued) |
|
|
| ||||
|
JAMAICA—3.2% |
|
|
| ||||
|
USD |
3,988 |
|
Digicel Group One Ltd., 8.25%, 12/30/2022 |
|
$ |
3,290,100 |
|
|
USD |
3,762 |
|
Digicel Group Two Ltd., 8.25%, 09/30/2020 (f) |
|
2,012,670 |
| |
|
|
|
|
|
|
5,302,770 |
| |
|
JERSEY—3.8% |
|
|
| ||||
|
GBP |
5,300 |
|
Newday Bondco PLC, 7.38%, 02/01/2020 (f) |
|
6,394,816 |
| |
|
|
|
|
|
|
|
| |
|
LUXEMBOURG—20.3% |
|
|
| ||||
|
USD |
11,354 |
|
Altice Luxembourg SA, 7.75%, 03/04/2019 (f) |
|
11,013,380 |
| |
|
EUR |
3,976 |
|
ARD Finance SA, 6.63%, 09/15/2019 (h) |
|
4,357,028 |
| |
|
EUR |
2,500 |
|
DEA Finance SA, 7.50%, 04/15/2019 (f) |
|
3,004,574 |
| |
|
GBP |
4,200 |
|
Garfunkelux Holdco 3 SA, 8.50%, 02/11/2019 (f) |
|
4,623,191 |
| |
|
EUR |
701 |
|
Hercule Debtco Sarl, 6.75%, 02/15/2020 (f)(h) |
|
714,082 |
| |
|
EUR |
1,400 |
|
Kleopatra Holdings 1 SCA, 8.50%, 07/15/2019 (f)(h) |
|
796,432 |
| |
|
EUR |
1,600 |
|
Matterhorn Telecom SA, 3.88%, 02/11/2019 (f) |
|
1,817,624 |
| |
|
EUR |
2,776 |
|
Monitchem HoldCo 2 SA, 6.88%, 02/11/2019 (f) |
|
2,730,410 |
| |
|
EUR |
4,200 |
|
Prague CE Sarl, 10.00%, 06/15/2019 (f)(h) |
|
4,854,910 |
| |
|
|
|
|
|
33,911,631 |
| ||
|
NETHERLANDS —1.7% |
|
|
| ||||
|
EUR |
2,575 |
|
Maxeda DIY Holding BV, 6.13%, 07/15/2019 (f) |
|
2,777,795 |
| |
|
|
|
|
|
|
|
| |
|
NIGERIA—1.9% |
|
|
| ||||
|
USD |
3,000 |
|
IHS Netherlands Holdco BV, 9.50%, 03/04/2019 (f) |
|
3,088,986 |
| |
|
|
|
|
|
|
|
| |
|
SPAIN—4.3% |
|
|
| ||||
|
EUR |
3,500 |
|
Aldesa Financial Services SA, 7.25%, 03/04/2019 (f) |
|
2,303,507 |
| |
|
USD |
1,000 |
|
Cirsa Finance International Sarl, 7.88%, 06/20/2020 (f) |
|
1,014,750 |
| |
|
USD |
4,350 |
|
Codere Finance 2 Luxembourg SA, 7.63%, 03/04/2019 (f) |
|
3,858,015 |
| |
|
|
|
|
|
7,176,272 |
| ||
|
SWEDEN—5.0% |
|
|
| ||||
|
EUR |
5,300 |
|
Unilabs Subholding AB, 5.75%, 05/15/2020 (f) |
|
5,824,632 |
| |
|
EUR |
2,200 |
|
Verisure Midholding AB, 5.75%, 12/01/2019 (f) |
|
2,511,824 |
| |
|
|
|
|
|
8,336,456 |
| ||
|
UKRAINE—1.7% |
|
|
| ||||
|
USD |
3,000 |
|
Metinvest BV, 8.50%, 01/23/2026 (f) |
|
2,835,000 |
| |
|
|
|
|
|
|
|
| |
|
UNITED KINGDOM—31.9% |
|
|
| ||||
|
GBP |
2,000 |
|
Amigo Luxembourg SA, 7.63%, 01/15/2020 (f) |
|
2,694,376 |
| |
|
GBP |
3,000 |
|
Arrow Global Finance PLC, 5.13%, 09/15/2019 (f) |
|
3,649,525 |
| |
|
EUR |
4,000 |
|
Corral Petroleum Holdings AB, 11.75%, 05/15/2019 (f)(h) |
|
4,888,804 |
| |
|
GBP |
7,000 |
|
CYBG PLC, (fixed rate to 12/08/2022, variable thereafter), 8.00%, 12/08/2022 (f)(g) |
|
8,481,129 |
| |
|
USD |
2,487 |
|
KCA Deutag UK Finance PLC, 9.63%, 04/01/2020 (f) |
|
1,877,685 |
| |
|
GBP |
2,200 |
|
Matalan Finance PLC, 6.75%, 01/31/2020 (f) |
|
2,649,627 |
| |
|
GBP |
4,513 |
|
Mizzen Bondco Ltd., 7.00%, 03/01/2019 (f) |
|
5,733,302 |
| |
|
GBP |
2,475 |
|
Pinnacle Bidco PLC, 6.38%, 02/15/2021 (f) |
|
3,261,855 |
| |
|
GBP |
3,000 |
|
Pizzaexpress Financing 2 PLC, 6.63%, 02/11/2019 (f) |
|
3,305,191 |
| |
|
GBP |
3,200 |
|
RAC Bond Co. PLC, 5.00%, 07/14/2019 (f) |
|
3,737,965 |
| |
|
GBP |
2,500 |
|
Shop Direct Funding PLC, 7.75%, 11/15/2019 (f) |
|
2,830,638 |
| |
|
EUR |
1,750 |
|
Thomas Cook Group PLC, 6.25%, 06/15/2019 (f) |
|
1,582,209 |
| |
|
GBP |
4,900 |
|
Voyage Care BondCo PLC, 10.00%, 11/01/2019 (f) |
|
5,914,997 |
| |
See Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (continued)
As of January 31, 2019
|
Principal |
|
Description |
|
Value |
| ||
|
CORPORATE BONDS (continued) |
|
|
| ||||
|
GBP |
2,000 |
|
Vue International Bidco PLC, 7.88%, 03/04/2019 (f) |
|
$ |
2,622,737 |
|
|
|
|
|
|
53,230,040 |
| ||
|
UNITED STATES—28.3% |
|
|
| ||||
|
EUR |
3,980 |
|
Adient Global Holdings Ltd., 3.50%, 05/15/2024 (f) |
|
3,437,221 |
| |
|
GBP |
2,000 |
|
AMC Entertainment Holdings, Inc., 6.38%, 11/15/2019 |
|
2,474,694 |
| |
|
USD |
1,700 |
|
Avantor, Inc., 9.00%, 10/01/2020 (f) |
|
1,751,000 |
| |
|
EUR |
3,000 |
|
Banff Merger Sub, Inc., 8.38%, 09/01/2021 (f) |
|
3,235,737 |
| |
|
EUR |
3,000 |
|
Bausch Health Cos. Inc., 4.50%, 03/01/2019 (f) |
|
3,395,594 |
| |
|
USD |
3,009 |
|
California Resources Corp., 8.00%, 03/04/2019 (f) |
|
2,427,902 |
| |
|
USD |
819 |
|
CFX Escrow Corp., 7.00%, 01/31/2026 |
|
819,000 |
| |
|
USD |
3,800 |
|
Cincinnati Bell, Inc., 7.00%, 09/15/2019 (f) |
|
3,268,000 |
| |
|
EUR |
1,820 |
|
Diamond BC BV, 5.63%, 08/15/2020 (f) |
|
1,849,856 |
| |
|
USD |
2,610 |
|
Exela Intermediate LLC / Exela Finance, Inc., 10.00%, 07/15/2020 (f) |
|
2,610,000 |
| |
|
USD |
6,336 |
|
Hexion, Inc., 10.00%, 03/04/2019 |
|
5,195,520 |
| |
|
USD |
2,112 |
|
Hexion, Inc., 10.38%, 03/04/2019 (f) |
|
1,689,600 |
| |
|
USD |
1,375 |
|
Moss Creek Resources Holdings, Inc., 7.50%, 01/15/2021 (f) |
|
1,230,625 |
| |
|
USD |
1,730 |
|
Radiate Holdco LLC / Radiate Finance, Inc., 6.63%, 02/15/2020 (f) |
|
1,604,575 |
| |
|
USD |
6,092 |
|
Rite Aid Corp., 7.70%, 02/15/2027 |
|
4,173,020 |
| |
|
USD |
3,700 |
|
Sanchez Energy Corp., 6.13%, 03/04/2019 |
|
647,500 |
| |
|
USD |
4,200 |
|
Staples, Inc., 8.50%, 09/15/2020 (f) |
|
4,032,000 |
| |
|
EUR |
3,600 |
|
Superior Industries International, Inc., 6.00%, 06/15/2020 (f) |
|
3,360,480 |
| |
|
|
|
|
|
47,202,324 |
| ||
|
ZAMBIA—3.7% |
|
|
| ||||
|
USD |
5,500 |
|
First Quantum Minerals Ltd., 6.88%, 03/01/2021 (f) |
|
4,984,375 |
| |
|
USD |
1,130 |
|
First Quantum Minerals Ltd., 7.00%, 03/04/2019 (f) |
|
1,127,175 |
| |
|
|
|
|
|
6,111,550 |
| ||
|
|
|
Total Corporate Bonds — 123.4% (cost $231,140,666) |
|
205,766,487 |
| ||
|
|
|
|
Shares or |
|
Value |
| |
|
SHORT-TERM INVESTMENT—7.0% |
|
|
|
| |||
|
UNITED STATES—7.0% |
|
|
|
| |||
|
State Street Institutional U.S. Government Money Market Fund, Premier Class, 2.32%(i) |
11,561,805 |
|
11,561,805 |
| |||
|
|
|
Total Short-Term Investment — 7.0% (cost $11,561,805) |
|
|
11,561,805 |
| |
|
|
|
Total Investments — 143.1% (cost $273,028,305) |
|
|
238,494,317 |
| |
|
|
|
Liabilities in Excess of Other Assets — (43.1)% |
|
|
(71,782,028 |
) | |
|
|
|
Net Assets—100.0% |
|
|
$ |
166,712,289 |
|
|
(a) |
Illiquid security. |
|
(b) |
Non-Income Producing Security. |
|
(c) |
Level 3 security. This security was fair valued by the Fund’s pricing committee as approved by the Fund’s Board of Trustees. See Note (a) of the accompanying Notes to Portfolio of Investments. |
|
(d) |
Security is in default. |
|
(e) |
Variable Rate Instrument. The rate shown is based on the latest available information as of January 31, 2019. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
|
(f) |
Denotes a security issued under Regulation S or Rule 144A. |
See Notes to Portfolio of Investments.
Portfolio of Investments (unaudited) (concluded)
As of January 31, 2019
|
(g) |
Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely. The maturity date presented for these instruments represents the next call/put date. |
|
(h) |
Payment-in-kind. This is a type of bond that pays interest in additional bonds rather than in cash. |
|
(i) |
Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of January 31, 2019. |
|
|
|
|
CAD—Canadian Dollar | |
|
EUR—Euro Currency | |
|
GBP—British Pound Sterling | |
|
USD—U.S. Dollar | |
At January 31, 2019, the Fund’s open forward foreign currency exchange contracts were as follows:
|
Purchase Contracts |
|
Counterparty |
|
Amount |
|
Amount |
|
Fair Value |
|
Unrealized |
| ||||
|
Euro/United States Dollar |
|
|
|
|
|
|
|
|
|
|
| ||||
|
02/14/2019 |
|
Citibank N.A. |
|
EUR |
150,000 |
|
USD |
170,555 |
|
$ |
171,834 |
|
$ |
1,279 |
|
|
02/14/2019 |
|
Royal Bank of Canada (UK) |
|
EUR |
20,000 |
|
USD |
22,855 |
|
22,911 |
|
56 |
| ||
|
02/14/2019 |
|
UBS AG |
|
EUR |
830,000 |
|
USD |
944,674 |
|
950,814 |
|
6,140 |
| ||
|
|
|
|
|
|
|
|
|
|
|
$ |
1,145,559 |
|
$ |
7,475 |
|
|
Sale Contracts |
|
Counterparty |
|
Amount |
|
Amount |
|
Fair Value |
|
Unrealized |
| ||||
|
United States Dollar/British Pound |
|
|
|
|
|
|
|
|
|
|
| ||||
|
02/14/2019 |
|
Royal Bank of Canada (UK) |
|
USD |
901,048 |
|
GBP |
700,000 |
|
$ |
918,589 |
|
$ |
(17,541 |
) |
|
02/14/2019 |
|
UBS AG |
|
USD |
55,958,547 |
|
GBP |
44,243,000 |
|
58,058,784 |
|
(2,100,237 |
) | ||
|
United States Dollar/Euro |
|
|
|
|
|
|
|
|
|
|
| ||||
|
02/14/2019 |
|
Citibank N.A. |
|
USD |
76,437,406 |
|
EUR |
66,831,000 |
|
76,558,861 |
|
(121,455 |
) | ||
|
02/14/2019 |
|
UBS AG |
|
USD |
1,489,461 |
|
EUR |
1,300,000 |
|
1,489,227 |
|
234 |
| ||
|
|
|
|
|
|
|
|
|
|
|
$ |
137,025,461 |
|
$ |
(2,238,999 |
) |
* Certain contracts with different trade dates and like characteristics have been shown net.
See Notes to Portfolio of Investments.
Notes to Portfolio of Investments (unaudited)
January 31, 2019
Summary of Significant Accounting Policies
a. Security Valuation:
The Fund values its securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Fund’s Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date.
In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3 the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid quoted price on the valuation date provided by an independent pricing service provider approved by the Board of Trustees (the “Board”). Evaluated quotes provided by the pricing services may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institutional-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.
Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share net asset value. Generally, these investment types are categorized as Level 1 investments.
Senior Loans are valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institutional-size trading in similar groups of securities and other market data.
Derivative instruments are valued at fair value. Exchange traded derivatives are generally Level 1 investments and over-the-counter derivatives are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12- month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). When market quotations or exchange rates are not readily available, or if the Adviser concludes that such market quotations do not accurately reflect fair value, the fair value of a Fund’s assets are determined in good faith in accordance with the Valuation Procedures.
In the event that a security’s market quotations are not readily available or are deemed unreliable, the security is valued at fair value as determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Fund’s Pricing Committee may be classified as Level 2 or Level 3 depending on the nature of the inputs. The three-level hierarchy of inputs is summarized below:
Notes to Portfolio of Investments (unaudited) (continued)
January 31, 2019
Level 1 — quoted prices in active markets for identical investments;
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
A summary of standard inputs is listed below:
|
Security Type |
|
Standard Inputs |
|
Debt and other fixed-income securities |
|
Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, credit quality, yield, and maturity. |
|
Forward foreign currency contracts |
|
Forward exchange rate quotations. |
The following is a summary of the inputs used as of January 31, 2019 in valuing the Fund’s investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:
|
Investments, at Value |
|
Level 1-Quoted |
|
Level 2-Other |
|
Level 3-Significant |
|
Total ($) |
| ||||
|
Investments in Securities |
|
|
|
|
|
|
|
|
| ||||
|
Fixed Income Investments |
|
|
|
|
|
|
|
|
| ||||
|
Bank Loans |
|
$ |
— |
|
$ |
20,966,025 |
|
$ |
200,000 |
|
$ |
21,166,025 |
|
|
Corporate Bonds |
|
— |
|
205,766,487 |
|
— |
|
205,766,487 |
| ||||
|
Total Fixed Income Investments |
|
— |
|
226,732,512 |
|
200,000 |
|
226,932,512 |
| ||||
|
Short-Term Investment |
|
11,561,805 |
|
— |
|
— |
|
11,561,805 |
| ||||
|
Total Investments |
|
$ |
11,561,805 |
|
$ |
226,732,512 |
|
$ |
200,000 |
|
$ |
238,494,317 |
|
|
Other Financial Instruments |
|
|
|
|
|
|
|
|
| ||||
|
Common Stocks |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
Forward Foreign Currency Exchange Contracts |
|
$ |
— |
|
$ |
37,402 |
|
$ |
— |
|
$ |
37,402 |
|
|
Total Assets |
|
$ |
11,561,805 |
|
$ |
226,769,914 |
|
$ |
200,000 |
|
$ |
238,531,719 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
| ||||
|
Other Financial Instruments |
|
|
|
|
|
|
|
|
| ||||
|
Forward Foreign Currency Exchange Contracts |
|
$ |
— |
|
$ |
(2,268,926 |
) |
$ |
— |
|
$ |
(2,268,926 |
) |
|
Other Financial Instruments |
|
|
|
|
|
|
|
|
| ||||
Amounts listed as “-” are $0 or round to $0.
For the period ended January 31, 2019, there were no significant changes to the fair valuation methodologies. Level 3 investments held, at the beginning, during and at the end of the period in relation to net assets were not significant (less than 0.12% of total net assets) and accordingly, a reconciliation of Level 3 assets for the period ended January 31, 2019 is not presented. The valuation technique used at January 31, 2019 was a fair valuation as determined by the Fund’s Pricing Committee. The inputs utilized by the broker to value the investment were not available.
b. Restricted Securities:
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended.
Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.
Item 2 — Controls and Procedures
(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.302CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Aberdeen Income Credit Strategies Fund
|
By: |
/s/ Christian Pittard |
|
|
|
Christian Pittard, |
|
|
|
Principal Executive Officer of |
|
|
|
Aberdeen Income Credit Strategies Fund |
|
|
| ||
|
Date: |
March 29, 2019 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
|
By: |
/s/ Christian Pittard |
|
|
|
Christian Pittard, |
|
|
|
Principal Executive Officer of |
|
|
|
Aberdeen Income Credit Strategies Fund |
|
|
| ||
|
Date: |
March 29, 2019 | |
|
By: |
/s/ Andrea Melia |
|
|
|
Andrea Melia, |
|
|
|
Principal Financial Officer of |
|
|
|
Aberdeen Income Credit Strategies Fund |
|
|
|
| |
|
Date: |
March 29, 2019 | |