UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-06342
Exact name of registrant as specified in charter: Aberdeen Global Income Fund,
Inc.
Address of principal executive offices: 800 Scudders Mill Road,
Plainsboro,
New Jersey 08536
Name and address of agent for service: Mr Beverly Hendry,
300 S.E. 2nd Street,
Suite #820,
Fort Lauderdale,
Florida 33301
Registrant's telephone number, including area code: 212-968-8800
Date of fiscal year end: 10/31/04
Date of reporting period: 10/31/04
Item 1 - Reports to Stockholders -
[LOGO]
-----------------
Aberdeen
Global Income
Fund, Inc.
[GRAPHIC]
Invests primarily in global fixed-income securities
Annual Report
October 31, 2004
Letter to Shareholders
December 20, 2004
Dear Shareholder,
We present this Annual Report which covers the activities of Aberdeen Global
Income Fund, Inc. (the "Fund") for the year ended October 31, 2004. The Fund's
principal investment objective is to provide high current income by investing
primarily in fixed-income securities denominated in Commonwealth Currencies,
that is, the currencies of Australia, Canada, New Zealand and the United
Kingdom. As a secondary investment objective, the Fund seeks capital
appreciation, but only when consistent with its principal investment objective.
Transfer of Listing of the Fund to the Amex from the NYSE
Effective November 4, 2004, the Fund transferred the listing of its shares of
common stock to the American Stock Exchange from the New York Stock Exchange.
The Fund's shares of common stock now trade on the American Stock Exchange under
the symbol "FCO."
New Fund Administrator
Effective November 1, 2004, Aberdeen Asset Management Inc. became the Fund's
administrator.
Credit Quality: 82.9% of Securities Rated or Deemed Equivalent to A or Better
The credit quality of the Fund's investments has been maintained. As of October
31, 2004, 82.9% of the portfolio was invested in securities where either the
issue or the issuer was rated A or better, or judged by Aberdeen Asset
Management Asia Limited (the "Investment Manager") to be of equivalent quality.
Distributions
Distributions to common shareholders for the 12 months ended October 31, 2004
totaled 72 cents per share. Based on the share price of $14.02 on October 31,
2004, the distribution rate over the 12 months then ended was 5.1%. Since all
distributions are paid after deducting applicable withholding taxes, the
effective distribution rate may be higher for those U.S. investors who are able
to claim a tax credit.
On December 20, 2004 the Board of Directors declared a monthly distribution of 6
cents per share, payable on January 14, 2005 to all shareholders of record as of
December 31, 2004.
The Board's policy is to provide investors with a stable monthly distribution
out of current income, supplemented by realized capital gains and, to the extent
necessary, paid-in-capital. It is the Board's intention that the monthly
distribution of 6 cents per share be maintained for 12 months, beginning with
the July 2004 distribution payment. This policy is subject to
Aberdeen Global Income Fund, Inc. 1
Letter to Shareholders (continued)
regular review at the Board's quarterly meetings, unless market conditions
require an earlier evaluation. The next review is scheduled to take place in
March 2005.
Net Asset Value Performance
The Fund's total return based on Net Asset Value ("NAV") was 16.6% over the
twelve months ended October 31, 2004 and 8.6% per annum since inception,
assuming the reinvestment of distributions.
Share Price Performance
The Fund's share price rose by 2.9% over the year, from $13.62 on October 31,
2003 to $14.02 on October 31, 2004. The Fund's share price on October 31, 2004
represented a premium of 2.2% to the NAV per share of $13.72 on that date,
compared with a premium of 9.6% to the NAV per share of $12.43 on October 31,
2003. At the date of this letter, the share price was $14.99, representing a
premium of 3.2% to the NAV per share of $14.53.
Global Debt Securities: 14.8% of Total Assets Invested in Global Debt Securities
The Fund may invest up to 35% of its total assets in Global Debt Securities. The
term "Global Debt Securities" includes securities of issuers located in, or
securities denominated in the currency of, countries other than Australia,
Canada, New Zealand or the United Kingdom. As of October 31, 2004, 14.8% of the
Fund's total assets were held in Global Debt Securities, consisting of 1.1% in
Asian debt securities, 1.3% in Eastern Europe, 6.6% in Latin America, 0.8% in
South Africa and 5.0% in Western Europe.
Limitations on Investments in Investment Company Securities
In March 2004, the Board of directors approved the modification of the Fund's
investment policies to provide that the Fund may invest in securities issued by
investment companies registered as such under the Investment Company Act of 1940
("1940 Act") and unregistered, private funds (each, an "acquired company"),
subject to the following limitations (which are to be applied immediately after
the acquisition of such securities).
The Fund may not acquire securities issued by an acquired company:
(i) if the value of such securities exceeds 3% of the total outstanding voting
stock of the acquired company;
(ii) if the aggregate value of such securities would exceed 5% of the value of
the total assets of the Fund; or
2 Aberdeen Global Income Fund, Inc.
Letter to Shareholders (concluded)
(iii) if the aggregate value of such securities, together with all other
acquired company sec-urities in the Fund's portfolio, would exceed 10% of the
value of the total assets of the Fund.
Portfolio Holdings Disclosure
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at http://www.sec.gov and may be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information about
the operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330. The Fund's schedule of portfolio holdings are part of the Fund's
quarterly reports to shareholders, which are available on the Fund's website or
upon request and without charge by calling Investor Relations toll-free at
1-866-839-5233.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities, and information regarding how
the Fund voted proxies relating to portfolio securities during the twelve months
ended June 30, 2004, is available: (i) upon request and without charge by
calling Investor Relations toll-free at 1-866-839-5233; and (ii) on the SEC's
website at http://www.sec.gov.
For information about the Fund, including a market review and outlook, weekly
updates of share price, NAV, and details of recent distributions, contact
Aberdeen Asset Management Inc. by:
o calling toll free on 1-866-839-5233 or 1-954-767-9900 in the United States,
o emailing to InvestorRelations@aberdeen-asset.com, or
o visiting the website at www.aberdeen-asset.us.
For information about the Aberdeen group, visit the Aberdeen website at
www.aberdeen-asset.com.
Yours sincerely,
/s/ Martin J. Gilbert
Martin J. Gilbert
Chairman and President
All amounts are U.S. dollars unless otherwise stated.
Aberdeen Global Income Fund, Inc. 3
--------------------------------------------------------------------------------
Your Board's policy is to provide investors with a stable monthly distribution
out of current income, supplemented by realized capital gains and, to the extent
necessary, paid-in-capital.
The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax
accounting rules, the amount of distributable income for each fiscal period
depends on the actual exchange rates during the entire year between the U.S.
dollar and the currencies in which Fund assets are denominated and on the
aggregate gains and losses realized by the Fund during the entire year.
Therefore, the exact amount of distributable income for each fiscal year can
only be determined as of the end of the Fund's fiscal year, October 31. However,
under the U.S. Investment Company Act of 1940, the Fund is required to indicate
the source of each distribution to shareholders. This estimated distribution
composition may vary from month to month because it may be materially impacted
by future realized gains and losses on securities and fluctuations in the value
of the currencies in which Fund assets are denominated.
The distributions for the fiscal year ended October 31, 2004 were comprised
entirely of net investment income.
In January 2005, a Form 1099 DIV will be sent to shareholders, which will state
the amount and composition of distributions and provide information with respect
to their appropriate tax treatment for the 2004 calendar year.
--------------------------------------------------------------------------------
4 Aberdeen Global Income Fund, Inc.
Automatic Dividend Reinvestment and Cash Purchase Plan
Common shareholders are automatically enrolled in the Fund's Automatic Dividend
Reinvestment and Cash Purchase Plan (the "Plan"), which allows you to
automatically reinvest your distributions in shares of the Fund's common stock
at favorable commission rates, unless an election is made to receive
distributions in cash. Distributions made under the Plan are taxable to the same
extent as are cash distributions. The Plan also enables you to make additional
cash investments in shares of at least $100, with a maximum of $10,000 per
month, with an aggregate annual limit of $120,000. Under this arrangement, the
Plan Agent will purchase shares for you on the American Stock Exchange or
otherwise on the open market on or before the 15th day of each month. The Bank
of New York became the Plan Agent, replacing EquiServe Trust Company, N.A. as
the Plan Agent. As a result of this transfer of services, certain fees
associated with the Plan may have changed. Fees payable by Plan participants are
more fully described under the heading "Automatic Dividend Reinvestment and Cash
Purchase Plan (unaudited)" following the notes to the financial statements
included in this report.
As a participant in the Plan you will have the convenience of:
Automatic reinvestment -- the Plan Agent will automatically reinvest your
distributions, allowing you to gradually grow your holdings in the Fund;
Lower costs -- shares purchased on your behalf under the Plan will be at reduced
brokerage rates. Brokerage on share purchases is currently 2 cents per share.
Convenience -- the Plan Agent will hold your shares in non-certificated form and
will provide a detailed plan account statement of your holdings at the end of
each distribution period.
To request a brochure containing information on the Plan, please contact the
Plan Agent, The Bank of New York, Shareholder Relations Department, P.O. Box
11258, Church Street Station, New York, NY 10286 or call toll free on
1-800-432-8224.
Aberdeen Global Income Fund, Inc. 5
Report of the Investment Manager
Share Price Performance
On October 31, 2004, the Fund's share price was $14.02, which represented a
premium of 2.2% to the NAV per share of $13.72. As of December 20, 2004, the
share price was $14.99, representing a premium of 3.2% to the NAV per share of
$14.53.
Auction Market Preferred Stock (AMPS)
The Fund's $30 million of AMPS continued to be well bid at the weekly auctions.
The average interest rate paid was 1.923% over the quarter ended October 31,
2004, compared with 1.658% for 30-day U.S. commercial paper over the same
period. These rates were slightly higher than for the preceding quarter. The key
driver of the increase in the AMPS interest rates since the quarter ended July
31, 2004 was a general rise in market interest rates in response to the U.S.
Federal Reserve's three tightenings of monetary policy on August 10, 2004,
September 21, 2004 and November 10, 2004, by a cumulative 0.75%. The rates paid
to preferred shareholders have increased further since October 31, 2004 to a
level of 2.30% as of December 20, 2004.
Over the past year, the impact of the AMPS on the net asset value attributable
to common shareholders has been positive, as the key currencies of the Fund --
the Australian dollar, British pound, New Zealand dollar and Canadian dollar --
while no longer at the highs reached earlier in 2004, still strengthened overall
against the U.S. dollar.
Despite the fact that U.S. short-term interest rates rose by 0.75% since the
quarter ended July 31, 2004, the Fund's ability to lock in fixed rates for 80%
of the outstanding AMPS pursuant to the interest swap agreement referred to on
the following page, has meant that the differential between the AMPS funding
rates and the yields at which the Fund invests remains positive.
6 Aberdeen Global Income Fund, Inc.
Report of the Investment Manager (continued)
As previously reported to shareholders, the Fund entered into an interest rate
swap agreement, based on an aggregate notional amount of $24,000,000, which
represents 80% of the total AMPS outstanding. Under the terms of the agreement,
the Fund receives a floating rate of interest (one month USD-LIBOR BBA rate) and
pays fixed rates of interest for the terms and based upon the notional amounts
set forth below:
================================================
Remaining Amount Fixed Rate
Term (in $ million) Payable (%)
------------------------------------------------
4 years 7.2 3.54
3 years 7.2 3.16
2 years 4.8 2.69
1 year 4.8 2.1025
------------------------------------------------
A significant risk associated with interest rate swaps is the risk that the
counterparty may default or file for bankruptcy, in which case the Fund would
bear the risk of loss of the amount expected to be received under the swap
agreement. There can be no assurance that the Fund will have an interest rate
swap in place at any given time nor can there be any assurance that, if an
interest rate swap is in place, it will be successful in hedging the Fund's
interest rate risk with respect to the AMPS. The implementation of this strategy
is at the discretion of the AMPS Pricing Committee of the Board of Directors.
Aberdeen Global Income Fund, Inc. 7
Portfolio Composition
Geographic Composition
The table below shows the geographic composition of the Fund's total investments
as of October 31, 2004, compared with the previous quarter and twelve months:
TABLE 1: ABERDEEN GLOBAL INCOME FUND, INC. --
GEOGRAPHIC ASSET ALLOCATION
================================================================================
October 31, 2004 July 31, 2004 October 31, 2003
% % %
--------------------------------------------------------------------------------
Australia 23.9 23.2 24.5
Canada 18.9 18.0 17.1
New Zealand 13.5 13.9 12.1
United Kingdom 24.8 27.8 27.9
United States* 4.1 3.1 4.5
Asia 1.1 1.1 3.3
Eastern Europe 1.3 2.3 1.7
Latin America 6.6 5.7 4.3
South Africa 0.8 -- --
Western Europe 5.0 4.9 4.6
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* It is the policy of the Investment Manager to maintain a portion of the
Fund's investments in U.S. short-term securities to cover distributions
and expenses.
Geographic Composition
A bar graph depicts the geographic composition of the Fund's total investments
as of October 31, 2004, compared with the previous quarter and twelve months:
31-Oct-04 31-Jul-04 31-Oct-03
Australia 23.9 23.2 24.5
Canada 18.9 18 17.1
New Zealand 13.5 13.9 12.1
United Kingdom 24.8 27.8 27.9
United States 4.1 3.1 4.5
Asia 1.1 1.1 3.3
Eastern Europe 1.3 2.3 1.7
Latin America 6.6 5.7 4.3
South Africa 0.8 -- --
Western Europe 5 4.9 4.6
8 Aberdeen Global Income Fund, Inc.
Portfolio Composition (continued)
Currency Composition
The table below shows the currency composition of the Fund's total investments
as of October 31, 2004, compared with the previous quarter and twelve months:
TABLE 2: ABERDEEN GLOBAL INCOME FUND, INC. --
CURRENCY ALLOCATION
================================================================================
October 31, 2004 July 31, 2004 October 31, 2003
% % %
--------------------------------------------------------------------------------
Australian Dollar 23.7 23.0 24.4
Canadian Dollar 18.1 16.8 16.8
New Zealand Dollar 16.1 16.9 15.0
British Pound 23.9 27.8 26.8
United States Dollar* 13.2 13.1 12.9
Asian Currencies -- -- 1.7
Latin American Currencies 0.9 -- --
South African Rand 0.8 -- --
Western European Currencies 3.3 2.4 2.4
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* Includes Yankee bond investments.
Maturity Composition
As of October 31, 2004, the average maturity of the Fund's assets was 8.7 years,
compared with 7.2 years on October 31, 2003. The table below shows the maturity
composition of the Fund's investments as of October 31, 2004:
TABLE 3: ABERDEEN GLOBAL INCOME FUND, INC. --
MATURITY ANALYSIS
=====================================================================================
Less than 1 year 1 to 5 years 5 to 10 years Over 10 years
% % % %
-------------------------------------------------------------------------------------
Australia 2.3 47.4 43.3 7.0
Canada 10.7 27.6 35.2 26.5
New Zealand 24.7 43.9 21.0 10.4
United Kingdom -- 39.9 16.1 44.0
United States 45.0 18.1 36.9 --
Asia -- -- 96.9 3.1
Eastern Europe -- 51.3 48.7 --
Latin America -- -- 27.1 72.9
South Africa -- -- -- 100.0
Western Europe -- 26.8 73.2 --
-------------------------------------------------------------------------------------
Total Portfolio 7.9 35.2 31.4 25.5
=====================================================================================
Aberdeen Global Income Fund, Inc. 9
Portfolio Composition (continued)
Sectoral Composition
The table below shows the sectoral composition of the Fund's total investments
as of October 31, 2004:
TABLE 4: ABERDEEN GLOBAL INCOME FUND, INC. --
SECTORAL COMPOSITION
======================================================================================================
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
% % % % %
------------------------------------------------------------------------------------------------------
Australia 3.9 12.6 1.8 3.1 2.4
Canada 7.7 9.1 0.6 -- 1.5
New Zealand 3.3 -- 2.9 6.9 0.5
United Kingdom 17.5 -- 1.9 2.8 2.7
United States 1.4 -- -- 1.7 1.1
Asia -- -- -- 1.0 --
Eastern Europe 1.3 -- -- -- --
Latin America 6.6 -- -- -- --
South Africa 0.8 -- -- -- --
Western Europe -- -- -- 4.9 --
------------------------------------------------------------------------------------------------------
Total Portfolio 42.5 21.7 7.2 20.4 8.2
======================================================================================================
Sectoral Composition
A bar graph depicts the sectoral composition of the Fund's total investments as
of October 31, 2004:
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
Australia 3.9 12.6 1.8 3.1 2.4
Canada 7.7 9.1 0.6 -- 1.5
New Zealand 3.3 -- 2.9 6.9 0.5
United Kingdom 17.5 -- 1.9 2.8 2.7
United States 1.4 -- -- 1.7 1.1
Asia -- -- -- 1 --
Eastern Europe 1.3 -- -- -- --
Latin America 6.6 -- -- -- --
South Africa 0.8 -- -- -- --
Western Europe -- -- -- 4.9 --
10 Aberdeen Global Income Fund, Inc.
Portfolio Composition (continued)
Quality of Investments
As of October 31, 2004, 82.9% of the Fund's assets were invested in securities
where either the issue or the issuer was rated at least "A" by Standard & Poor's
Corporation and Moody's Investors Service, Inc. or, if unrated, were judged to
be of equivalent quality by the Investment Manager. The table below shows the
asset quality of the Fund's portfolio as of October 31, 2004:
TABLE 5: ABERDEEN GLOBAL INCOME FUND, INC. --
ASSET QUALITY
==========================================================================================
AAA/Aaa AA/Aa A BBB/Baa BB/Ba* B*
% % % % % %
------------------------------------------------------------------------------------------
Australia 91.1 4.7 4.2 -- -- --
Canada 51.6 34.4 14.0 -- -- --
New Zealand 63.4 6.1 19.8 10.7 -- --
United Kingdom 77.8 2.6 13.1 -- 1.6 4.9
United States 59.3 -- -- 13.4 23.1 4.2
Asia 0.2 -- -- -- 99.8 --
Eastern Europe -- -- -- -- 48.7 51.3
Latin America -- -- -- 14.3 72.1 13.6
South Africa -- -- 100.0 -- -- --
Western Europe 11.8 -- -- -- 53.2 35.0
------------------------------------------------------------------------------------------
Total Portfolio 63.1 9.2 10.6 3.1 9.7 4.3
==========================================================================================
* Below investment grade.
Aberdeen Global Income Fund, Inc. 11
Summary of Key Rates
The following table summarizes the movements of key interest rates and
currencies over the last three and twelve month periods.
================================================================================
October 31, 2004 July 31, 2004 October 31, 2003
--------------------------------------------------------------------------------
Australia
90 day bank bills 5.44% 5.47% 5.03%
10 year bonds 5.39% 5.90% 5.76%
Australian Dollar $ 0.75 $ 0.70 $ 0.71
Canada
90 day bank bills 2.91% 2.09% 2.67%
10 year bonds 4.48% 4.76% 4.85%
Canadian Dollar $ 0.82 $ 0.75 $ 0.76
New Zealand
90 day bank bills 6.79% 6.33% 5.23%
10 year bonds 6.03% 6.34% 6.17%
New Zealand Dollar $ 0.68 $ 0.63 $ 0.61
United Kingdom
90 day bank bills 4.79% 4.85% 3.84%
10 year bonds 4.74% 5.10% 5.01%
British Pound $ 1.83 $ 1.82 $ 1.70
South Korea
90 day T-bills 3.38% 3.83% 3.96%
10 year bonds 3.95% 4.69% 5.10%
South Korean Won (W)1119.50 (W)1169.50 (W)1183.50
Thailand
90 day deposits 1.00% 1.00% 1.00%
10 year bonds 4.77% 5.07% 4.22%
Thai Baht* (B)41.07 (B)41.32 (B)41.98
Philippines
90 day T-bills 7.95% 7.31% 6.00%
10 year bonds 13.20% 12.34% 10.99%
Philippines Peso* (P)56.33 (P)55.98 (P)55.32
Malaysia
90 day T-bills 2.18% 2.31% 2.73%
10 year bonds 4.93% 5.07% 4.43%
Malaysian Ringgit* (R)3.80 (R)3.80 (R)3.80
Singapore
90 day T-bills 1.29% 0.91% 0.76%
10 year bonds 3.09% 3.53% 3.95%
Singapore Dollar* S$ 1.67 S$ 1.72 S$ 1.74
US$ Yankee Bonds**
South Korea 3.33% 4.10% 3.86%
Malaysia 3.87% 4.47% 4.15%
Philippines 6.03% 5.92% 6.49%
================================================================================
* These currencies are quoted Asian currency per U.S. dollar. The
Australian, Canadian and New Zealand dollars and the British pound are
quoted U.S. dollars per currency.
** Sovereign issues.
Aberdeen Asset Management Asia Limited
December 2004
12 Aberdeen Global Income Fund, Inc.
Portfolio of Investments
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 109.8%
AUSTRALIA -- 26.1%
Government Bonds -- 4.5%
A$
Commonwealth of Australia,
1,750 10.00%, 10/15/07 .......................................... Aaa AAA $ 1,478,517
2,250 7.50%, 9/15/09 ............................................ Aaa AAA 1,839,306
750 5.75%, 6/15/11 ............................................ Aaa AAA 573,296
100 6.50%, 5/15/13 ............................................ Aaa AAA 80,487
300 6.00%, 2/15/17 ............................................ Aaa AAA 235,093
Federal National Mortgage Association, Series EMTN,
2,000 6.375%, 8/15/07 (USA) ..................................... Aaa AAA 1,525,139
------------
Total government bonds
(cost US$4,714,927) ....................................... 5,731,838
------------
Semi-Government Bonds -- 15.4%
New South Wales -- 3.3%
New South Wales Treasury Corporation,
4,700 7.00%, 12/01/10 ........................................... NR AAA 3,792,219
550 6.00%, 5/01/12 ............................................ Aaa AAA 422,656
------------
4,214,875
------------
Northern Territory -- 1.4%
Northern Territory Treasury,
2,250 6.75%, 7/14/09 ............................................ NR AA- 1,759,644
------------
Queensland -- 5.1%
Queensland Treasury Corporation,
1,000 8.00%, 9/14/07 (Global) ................................... Aaa AAA 801,084
2,000 6.00%, 6/14/11 ............................................ Aaa AAA 1,532,030
2,700 6.00%, 8/14/13 ............................................ Aaa AAA 2,093,095
1,500 6.00%, 10/14/15 ........................................... Aaa AAA 1,161,535
1,250 6.00%, 6/14/21 ............................................ Aaa AAA 967,515
------------
6,555,259
------------
Victoria -- 1.6%
Treasury Corporation of Victoria,
1,000 9.00%, 6/27/05 ............................................ Aaa AAA 763,228
1,500 10.25%, 11/15/06 .......................................... Aaa AAA 1,228,247
------------
1,991,475
------------
Western Australia -- 4.0%
Western Australia Treasury Corporation,
3,500 8.00%, 10/15/07 ........................................... Aaa AAA 2,803,628
2,650 8.00%, 6/15/13 ............................................ Aaa AAA 2,309,449
------------
5,113,077
------------
Total Australian semi-government bonds
(cost US$16,653,272) ...................................... 19,634,330
------------
Aberdeen Global Income Fund, Inc. 13
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
AUSTRALIA (concluded)
Supranational -- 2.2%
A$
Eurofima,
3,500 9.875%, 1/17/07 ........................................... Aaa AAA $ 2,847,012
------------
Total Australian dollar supranational bonds
(cost US$1,945,461) ....................................... 2,847,012
------------
Banking and Finance -- 0.4%
Bank of America Corporation,
500 6.50%, 12/05/08 (USA) ..................................... Aa2 A+ 382,266
Merrill Lynch & Co., Inc.,
200 6.75%, 3/12/14 (USA) ...................................... Aa3 A+ 153,515
------------
Total Australian banking and finance bonds
(cost US$491,349) ......................................... 535,781
------------
Corporate Non-Banks -- 3.6%
Brisbane Airport Corporation, Ltd.,
4,000 7.30%, 6/30/10 ............................................ Aaa AAA 3,169,048
GE Capital Australia,
600 6.75%, 9/15/07 (USA) ...................................... Aaa AAA 460,835
GPT Management Ltd.,
200 6.50%, 8/22/13 ............................................ NR A+ 150,004
Wesfarmers Ltd.,
1,000 6.25%, 8/27/07 ............................................ NR A- 753,342
------------
Total Australian corporate non-bank bonds
(cost US$3,297,778) ....................................... 4,533,229
------------
Total Australian long-term investments
(cost US$27,102,787) ...................................... 33,282,190
------------
CANADA -- 19.5%
Government Bonds -- 8.8%
C$
Canadian Government,
2,500 7.25%, 6/01/07 ............................................ NR AAA 2,243,431
3,000 10.25%, 3/15/14 ........................................... Aaa AAA 3,555,704
2,000 8.00%, 6/01/23 ............................................ Aaa AAA 2,260,430
2,000 9.00%, 6/01/25 ............................................ NR AAA 2,491,871
Canada (Cayman),
750 7.25%, 6/01/08 ............................................ Aaa AAA 673,356
------------
Total Canadian government bonds
(cost US$8,744,638) ....................................... 11,224,792
------------
14 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
CANADA (concluded)
Semi-Government Bonds -- 10.0%
British Columbia -- 1.7%
C$
Province of British Columbia,
2,000 9.50%, 1/09/12 ............................................ Aa2 AA- $ 2,146,833
------------
Manitoba -- 2.4%
Province of Manitoba Series EMTN,
3,500 7.00%, 5/21/07 ............................................ Aa2 AA- 3,101,521
------------
New Brunswick -- 1.5%
Province of New Brunswick,
2,000 7.75%, 1/13/14 ............................................ Aa3 AA- 1,974,500
------------
Newfoundland -- 0.7%
Province of Newfoundland,
1,000 5.125%, 12/29/10 .......................................... A3 A- 843,714
------------
Ontario -- 1.1%
Ontario Hydro,
500 8.50%, 5/26/25 ............................................ Aa2 AA 571,839
Province of Ontario,
1,000 5.25%, 11/30/11 ........................................... Aa2 AA 849,837
------------
1,421,676
------------
Quebec -- 2.6%
Quebec Hydro,
1,000 2.187%, 1/28/05 (b) ....................................... A1 A+ 819,988
2,000 9.625%, 7/15/22 ........................................... A1 A+ 2,438,778
------------
3,258,766
------------
Total Canadian semi-government bonds
(cost US$10,660,264) ...................................... 12,747,010
------------
Supranational -- 0.7%
Council of Europe,
1,000 5.25%, 2/27/12 ............................................ Aaa AAA 855,397
------------
Total Canadian dollar supranational bonds
(cost US$838,114) ......................................... 855,397
------------
Total Canadian long-term investments
(cost US$20,243,016) ...................................... 24,827,199
------------
Aberdeen Global Income Fund, Inc. 15
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
EURO -- 4.0%
Germany -- 0.6%
Corporate Non-Banks -- 0.6%
EUR
Cognis GmbH,
225 9.50%, 5/15/14 ............................................ B3 B $ 305,530
Kronos International Inc.,
310 8.875%, 6/30/09 ........................................... B2 BB- 423,910
------------
729,440
------------
France -- 0.2%
Corporate Non-Bank -- 0.2%
Remy Cointreau SA,
150 6.50%, 7/01/10 ............................................ Ba2 BB 201,302
------------
Ireland -- 0.3%
Corporate Non-Bank -- 0.3%
Valentia Telecommunications LTD,
300 7.25%, 8/15/13 ............................................ Ba3 BB- 415,960
------------
Jamaica -- 1.1%
Government Bonds -- 1.1%
Government of Jamaica,
1,000 11.00%, 7/27/12 ........................................... B1 B 1,335,652
------------
Luxembourg -- 0.3%
Corporate Non-Bank -- 0.3%
Rhiag SA,
310 10.75%, 6/05/07 (c) ....................................... B2 B- 396,307
------------
Netherlands -- 0.3%
Corporate Non-Bank -- 0.3%
Carmeuse Lime BV,
300 10.75%, 7/15/12 (c) ....................................... Ba3 B+ 440,765
------------
United States -- 1.2%
Corporate Non-Banks -- 1.2%
AGCO Corporation,
225 6.875%, 4/15/14 ........................................... B1 BB- 287,642
Dana Corporation,
300 9.00%, 8/15/11 ............................................ Ba3 BB 450,306
Lear Corporation,
310 8.125%, 4/01/08 ........................................... Baa3 BBB- 445,007
TRW Automotive Inc.,
268 10.125%, 2/15/13 .......................................... B1 BB- 392,046
------------
1,575,001
------------
Total Euro long-term investments
(cost US$4,522,821) ....................................... 5,094,427
------------
16 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
MEXICO -- 1.1%
Government Bonds -- 1.1%
MXN
Mexican Government,
19,000 8.00%, 12/19/13 ........................................... Baa1 BBB+ $ 1,445,501
------------
Total Mexican long-term investments
(cost US$1,520,120) ....................................... 1,445,501
------------
NEW ZEALAND -- 19.5%
Government Bonds -- 4.7%
NZ$
Canadian Government,
1,000 6.625%, 10/03/07 (Canada) ................................. Aaa AAA 692,759
New Zealand Government,
5,000 6.50%, 4/15/13 ............................................ Aaa AAA 3,522,293
2,500 6.00%, 4/15/15 ............................................ Aaa AAA 1,704,291
------------
Total New Zealand government bonds
(cost US$4,593,063) ....................................... 5,919,343
------------
Semi-Government Bonds -- 1.1%
Province of Ontario,
2,000 5.75%, 3/03/08 (Canada) ................................... Aa2 AA 1,338,954
------------
Total New Zealand semi-government bonds
(cost US$1,110,655) ....................................... 1,338,954
------------
Banking and Finance -- 8.4%
Bank Nederlandse Gemeenten NV,
1,000 5.25%, 6/17/09 (Netherlands) .............................. Aaa AAA 648,949
Bayerische Hypo- und Vereinsbank AG,
2,000 7.00%, 9/14/05 (Germany) .................................. A3 A- 1,367,127
Commerzbank AG,
3,500 8.00%, 2/07/05 (Germany) .................................. A2 A- 2,396,097
Dexia Municipal Agency,
3,000 7.00%, 11/26/07 (France) .................................. Aaa AAA 2,073,744
GMAC INTL Finance BV,
3,500 8.00%, 3/14/07 (Netherlands) .............................. A3 BBB- 2,410,439
Landesbank Baden-Wuerttemberg,
2,200 5.25%, 1/06/05 (Germany) .................................. Aaa AAA 1,500,545
Transpower Finance Ltd.,
500 8.00%, 6/15/05 ............................................ Aa2 AA 344,442
------------
Total New Zealand banking and finance bonds
(cost US$7,486,100) ....................................... 10,741,343
------------
Aberdeen Global Income Fund, Inc. 17
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
NEW ZEALAND (concluded)
Corporate Non-Banks -- 1.9%
NZ$
Auckland Healthcare Services Ltd,
1,000 7.75%, 9/15/15 ............................................ Aaa AAA $ 735,057
Housing New Zealand,
1,500 8.00%, 11/15/06 ........................................... Aaa AA 1,056,881
Powerco Ltd.,
1,000 6.39%, 3/29/13 ............................................ NR AAA 660,381
------------
Total New Zealand corporate non-bank bonds
(cost US$2,013,286) ....................................... 2,452,319
------------
Supranational -- 3.4%
European Investment Bank,
2,300 7.00%, 12/17/07 ........................................... Aaa AAA 1,595,030
International Finance Corp,
4,000 6.75%, 7/15/09 ............................................ Aaa AAA 2,791,691
------------
Total New Zealand dollar supranational bonds
(cost US$3,528,282) ....................................... 4,386,721
------------
Total New Zealand long-term investments
(cost US$18,731,386) ...................................... 24,838,680
------------
SOUTH AFRICA -- 1.0%
Government Bonds -- 1.0%
ZAR
Republic of South Africa,
6,000 13.50%, 9/15/15 ........................................... A2 A 1,274,276
------------
Total South Africa long-term investments
(cost US$1,176,810) ....................................... 1,274,276
------------
UNITED KINGDOM -- 26.6%
Government Bonds -- 20.2%
(pound)
United Kingdom Treasury,
1,250 8.50%, 12/07/05 ........................................... Aaa AAA 2,387,888
1,100 7.50%, 12/07/06 ........................................... Aaa AAA 2,133,036
500 5.75%, 12/07/09 ........................................... Aaa AAA 960,858
1,500 8.00%, 9/27/13 ............................................ Aaa AAA 3,393,114
600 8.00%, 12/07/15 ........................................... Aaa AAA 1,408,300
3,000 8.00%, 6/07/21 ............................................ Aaa AAA 7,565,386
2,350 6.00%, 12/07/28 ........................................... NR AAA 5,169,314
Republic of Finland,
1,250 10.125%, 6/22/08 (Finland) ................................ Aaa AAA 2,680,539
------------
Total United Kingdom government bonds
(cost US$21,408,620) ...................................... 25,698,435
------------
18 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (concluded)
Utilities -- 2.2%
(pound)
British Gas PLC,
1,400 8.875%, 7/08/08 ........................................... A2 A $ 2,875,423
------------
Total United Kingdom utility bonds
(cost US$2,162,281) ....................................... 2,875,423
------------
Banking and Finance -- 2.9%
Barclays Bank PLC,
1,000 9.875%, 5/29/49 ........................................... Aa2 A+ 2,094,334
Prudential Finance B.V.,
500 9.375%, 6/04/07 ........................................... NR AA- 1,007,319
RMH Finance Ltd.,
300 8.80%, 8/28/17 (Cayman Islands) ........................... Ba1 BB+ 601,361
------------
Total United Kingdom banking and finance bonds
(cost US$2,954,991) ....................................... 3,703,014
------------
Corporate Non-Banks -- 1.3%
American Standard Inc.,
221 8.25%, 6/01/09 (USA) ...................................... Ba2 BBB- 437,334
Big Food Group PLC,
150 9.75%, 6/30/12 ............................................ B1 B+ 289,962
Constellation Brands Inc.,
200 8.50%, 11/15/09 (USA) ..................................... Ba2 BB 390,280
Debenhams Finance Holdings PLC,
125 10.50%, 8/28/12 (c) ....................................... B2 B 243,639
Warner Music Group,
150 8.125%, 4/15/14 (USA) ..................................... B3 B- 278,968
------------
Total United Kingdom corporate non-bank bonds
(cost US$1,460,411) ....................................... 1,640,183
------------
Total United Kingdom long-term investments
(cost US$27,986,303) ...................................... 33,917,055
------------
UNITED STATES -- 12.0%
Yankee Bonds -- 12.0%
Australia -- 0.1%
Corporate Non-Banks -- 0.1%
US$
Cable & Wireless Optus Finance,
100 8.00%, 6/22/10 ............................................ A2 A+ 117,304
------------
Brazil -- 3.2%
Government -- 3.2%
Federal Republic of Brazil,
1,200 10.00%, 8/07/11 ........................................... B1 BB- 1,314,000
2,500 11.00%, 8/17/40 ........................................... B1 BB- 2,820,000
------------
4,134,000
------------
Aberdeen Global Income Fund, Inc. 19
Portfolio of Investments (continued)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
UNITED STATES (continued)
Colombia -- 1.4%
Government -- 1.4%
US$
Republic of Colombia,
1,600 10.375%, 1/28/33 .......................................... Ba2 BB $ 1,740,000
------------
Germany -- 1.3%
Corporate Non-Banks -- 1.3%
Gazprom OAO,
800 9.625%, 3/01/13 ........................................... NR BB- 920,000
JSC Severstal,
800 9.25%, 4/19/14 ............................................ B2 B+ 782,992
------------
1,702,992
------------
Netherlands -- 0.8%
Banking and Finance -- 0.8%
Kazkommerts International BV,
1,000 7.875%, 4/07/14 ........................................... Baa2 BB- 996,400
------------
Philippines -- 1.3%
Government -- 0.1%
Republic of Philippines,
50 9.375%, 1/18/17 ........................................... Ba2 BB 51,658
Utilities -- 1.2%
Philippine Long Distance Telephone Company,
1,400 11.375%, 5/15/12 .......................................... Ba2 BB 1,568,000
------------
1,619,658
------------
Peru -- 1.2%
Government -- 1.2%
Republic of Peru,
1,300 9.875%, 2/06/15 ........................................... Ba3 BB 1,504,750
------------
Turkey -- 0.8%
Government -- 0.8%
Republic of Turkey,
800 11.00%, 1/14/13 ........................................... B1 BB- 987,000
------------
Ukraine -- 0.8%
Government -- 0.8%
City of Kiev,
1,000 8.75%, 8/08/08 ............................................ B2 B 1,046,800
------------
Uruguay -- 1.1%
Government -- 1.1%
Republic of Uruguay,
1,600 7.50%, 3/15/15 ............................................ B3 B 1,408,000
------------
Total United States long-term investments
(cost US$13,018,592) ................................................. 15,256,904
------------
Total long-term investments
(cost US$114,301,835) ................................................ 139,936,232
------------
20 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (concluded)
As of October 31, 2004
Principal
Amount
Local Moody's S&P
Currency (a) Rating Rating Value
(000) Description (unaudited) (unaudited) (US$)
--------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS --7.6%
Canada -- 1.9%
C$
State Street Bank and Trust Company Time Deposit,
2,900 2.00%, 11/03/04 (USA)
(cost US$2,367,154) ....................................... NR NR $ 2,377,536
------------
New Zealand -- 0.6%
NZ$
State Street Bank and Trust Company Fixed Deposit,
1,108 5.00%, 11/03/04 (USA)
(cost US$773,107) ......................................... NR NR 757,983
------------
United Kingdom -- 3.3%
(pound)
State Street Bank and Trust Company Fixed Deposit,
2,320 4.687%, 11/03/04 (USA)
(cost US$4,261,611) ....................................... NR NR 4,250,937
------------
United States -- 1.8%
US$
Repurchase Agreement, State Street Bank and Trust Company,
2,233 1.70% dated 10/29/04, due 11/01/04 in the amount of
$2,233,316 (collateralized by $1,550,000 U.S. Treasury
Bonds, 8.875% due 2/15/19; value $2,278,500)
(cost US$2,233,000) ....................................... NR NR 2,233,000
------------
Total short-term investments
(cost US$9,634,872) .................................................. 9,619,456
------------
--------------------------------------------------------------------------------------------------------------------
Total Investments--117.4% (cost US$123,936,707) 149,555,688
Other assets in excess of liabilities--6.1% 7,848,292
Liquidation value of preferred stock--(23.5%) (30,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders--100.0% $127,403,980
====================================================================================================================
NR--Not rated by Moody's and/or Standard & Poors.
(a) Portfolio securities are categorized according to their currency exposure.
Where the country of issuer differs from the currency exposure, the
country of issuer is denoted parenthetically.
A$--Australian dollar
C$--Canadian dollar
EUR--Euro
(pound)--British pound
MXN--Mexican peso
NZ$--New Zealand dollar
US$--United States dollar
ZAR--South African Rand
(b) Coupon changes periodically upon a predetermined schedule. Stated interest
rate in effect at October 31, 2004.
(c) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2004, the aggregate market value of these securities amounted to
$1,080,711 or 0.8% of net assets applicable to common shareholders.
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 21
Statement of Assets and Liabilities
October 31, 2004
Assets
Investments, at value (cost $123,936,707) ................................ $ 149,555,688
Foreign currency, at value (cost $5,467,966) ............................. 5,636,181
Interest receivable ...................................................... 3,302,298
Variation margin receivable for futures contracts ........................ 73,115
Prepaid expenses ......................................................... 75,283
-------------
Total assets ........................................................... 158,642,565
-------------
Liabilities
Dividends payable to common shareholders ................................. 557,079
Payable for investments purchased ........................................ 200,020
Investment management fee payable ........................................ 102,859
Administration fee payable ............................................... 31,649
Due to custodian ......................................................... 43,844
Net unrealized depreciation on interest rate swaps ....................... 4,178
Net unrealized depreciation on forward foreign currency exchange contracts 363
Accrued expenses and other liabilities ................................... 298,593
-------------
Total liabilities ...................................................... 1,238,585
-------------
Preferred stock
$.001 par value per share and $25,000 liquidation value per share ........ 30,000,000
-------------
Net Assets Applicable to Common Shareholders ............................. $ 127,403,980
=============
Composition of Net Assets Applicable to Common Shareholders
Common Stock (par value $.001 per share) ................................. $ 9,285
Paid-in capital in excess of par ......................................... 114,074,501
Distributions in excess of net investment income ......................... (3,469,924)
Accumulated net realized losses on investment transactions ............... (2,862,872)
Net unrealized appreciation on investments ............................... 5,228,095
Accumulated net realized foreign exchange losses ......................... (6,237,620)
Net unrealized foreign exchange gains .................................... 20,662,515
-------------
Net Assets Applicable to Common Shareholders ............................. $ 127,403,980
=============
Net asset value per common share based on (9,284,656 shares
issued and outstanding) ................................................ $ 13.72
=============
See notes to financial statements.
22 Aberdeen Global Income Fund, Inc.
Statement of Operations
For the Year Ended October 31, 2004
Net Investment Income
Income
Interest and discount earned (net of foreign withholding taxes of $103,779) $ 8,721,219
------------
Expenses
Investment management fee ................................................. 989,430
Administration fee ........................................................ 304,440
Legal fees and expenses ................................................... 230,483
Directors' fees and expenses .............................................. 171,234
Reports to shareholders and proxy solicitation ............................ 168,203
Independent auditors' fees and expenses ................................... 114,555
Insurance expense ......................................................... 108,636
Auction agent's fees and expenses ......................................... 78,816
Investor relations fees and expenses ...................................... 71,460
Custodian's fees and expenses ............................................. 56,716
Registration fees ......................................................... 25,021
Transfer agent's fees and expenses ........................................ 19,108
Miscellaneous ............................................................. 42,402
------------
Total operating expenses ............................................... 2,380,504
------------
Net investment income ....................................................... 6,340,715
------------
Realized and Unrealized Gains (Losses) on Investments, Futures,
Swaps and Foreign Currencies
Net realized gain (loss) on:
Investment transactions ................................................... 394,059
Interest rate swaps ....................................................... (410,011)
Futures contracts ......................................................... 35,016
Foreign currency transactions ............................................. 3,475,586
------------
3,494,650
------------
Net change in unrealized appreciation/depreciation of:
Investment transactions ................................................... 2,497,949
Interest rate swaps ....................................................... (73,242)
Futures contracts ......................................................... 3,129
Foreign currency translations ............................................. 6,861,912
------------
9,289,748
------------
Net gain on investments, foreign currencies, futures and swaps .............. 12,784,398
------------
Net increase in Net Assets from Operations .................................. 19,125,113
Dividends to Preferred Shareholders from
Net Investment Income ..................................................... (439,812)
------------
Net Increase in NetAssets Applicable to Common Shareholders
Resulting from Operations ................................................. $ 18,685,301
============
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 23
Statements of Changes in Net Assets
Applicable to Common Shareholders
For the Year
Ended October 31,
-------------------------------
2004 2003
---------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Applicable to
Common Shareholders
Operations
Net investment income ........................................ $ 6,340,715 $ 5,262,837
Net realized gains on investments, futures and interest
rate swaps ................................................ 19,064 719,622
Net realized gains on foreign exchange transactions .......... 3,475,586 4,394,188
Net change in unrealized appreciation/depreciation of
investments, futures and interest rate swaps .............. 2,427,836 (453,680)
Net change in unrealized appreciation/depreciation on
foreign currency translations ............................. 6,861,912 15,386,693
------------- -------------
Net Increase in Net Assets from Operations ................... 19,125,113 25,309,660
------------- -------------
Dividends to preferred shareholders from net
investment income ............................................ (439,812) (435,504)
------------- -------------
Net Increase in Net Assets Applicable to
Common Shareholders Resulting from Operations ................ 18,685,301 24,874,156
------------- -------------
Dividends and distributions to common shareholders from
Net investment income ........................................ (6,679,935) (4,034,277)
Tax return of capital ........................................ -- (2,637,483)
------------- -------------
Net decrease in net assets applicable to common shareholders
resulting from dividends and distributions ................... (6,679,935) (6,671,760)
------------- -------------
Common Stock Transactions
Reinvestment of dividends resulting in the issuance of
15,988 and 2,459 shares of common stock, respectively ........ 215,760 29,950
------------- -------------
Total increase in net assets applicable to common shareholders . 12,221,126 18,232,346
Net Assets Applicable to Common Shareholders
Beginning of year .............................................. 115,182,854 96,950,508
------------- -------------
End of year (including distributions in excess of net investment
income of ($3,469,924) and ($2,839,755), respectively) ....... $ 127,403,980 $ 115,182,854
============= =============
See notes to financial statements.
24 Aberdeen Global Income Fund, Inc.
Financial Highlights
For the Year Ended October 31,
------------------------------------------------------------------------------
2004 2003 2002 2001 2000
----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance:
Net asset value per common share,
beginning of year ............................ $ 12.43 $ 10.46 $ 9.99 $ 10.20 $ 12.14
------------ ------------ ------------ ------------ ------------
Net investment income(1) ....................... 0.68 0.57 0.52 0.71 0.81
Net realized and unrealized gains (losses) on
investments, foreign currencies, futures
and swaps ...................................... 1.38 2.17 0.76 0.07 (1.68)
Dividends to preferred shareholders:
From net investment income ................... (0.05) (0.05) (0.07) (0.15) (0.16)
From net realized gains on
investment transactions .................... -- -- -- -- (0.04)
------------ ------------ ------------ ------------ ------------
Total from investment operations applicable to
common shareholders ........................ 2.01 2.69 1.21 0.63 (1.07)
------------ ------------ ------------ ------------ ------------
Dividends and distributions to
common shareholders:
From net investment income ................... (0.72) (0.44) (0.04) (0.34) (0.71)
Tax return of capital ........................ -- (0.28) (0.70) (0.50) --
From net realized gains on
investment transactions .................... -- -- -- -- (0.16)
------------ ------------ ------------ ------------ ------------
Total dividends and distributions .............. (0.72) (0.72) (0.74) (0.84) (0.87)
------------ ------------ ------------ ------------ ------------
Net asset value per common share,
end of year .................................. $ 13.72 $ 12.43 $ 10.46 $ 9.99 $ 10.20
============ ============ ============ ============ ============
Market value, end of year ...................... $ 14.02 $ 13.62 $ 9.35 $ 9.00 $ 8.875
============ ============ ============ ============ ============
Number of shares of common stock outstanding
(000 omitted) ................................ 9,285 9,268 9,266 9,266 9,266
Total investment return based on:(2)
Market value ................................. 8.77% 55.30% 12.45% 11.20% (6.11)%
Net asset value .............................. 16.64% 26.70% 13.30% 7.40% (7.78)%
Ratio to Average Net Assets Applicable to
Common Shareholders(3)/Supplementary Data:
Net assets applicable to common shareholders,
end of period (000 omitted) .................. $ 127,404 $ 115,183 $ 96,951 $ 92,539 $ 94,494
Average net assets applicable to common
shareholders (000 omitted) ................... 121,359 107,415 92,148 93,987 105,657
Operating expenses ............................. 1.96% 2.30% 2.17% 2.11% 2.02%
Net investment income(3) ....................... 4.86% 4.49% 4.57% 5.46% 5.39%
Portfolio turnover ............................. 22% 31% 39% 17% 29%
Senior securities (preferred stock) outstanding
(000 omitted) ................................ $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
Asset coverage on preferred stock at year end .. 525% 484% 423% 408% 415%
----------------------------------------------------------------------------------------------------------------------------------
(1) Based on average shares outstanding.
(2) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day
of each period reported. Dividends and distributions, if any, are assumed
for the purposes of this calculation to be reinvested at prices obtained
under the Fund's dividend reinvestment plan. Total investment return does
not reflect brokerage commissions.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders. Ratio of net investment income before preferred stock
dividends to average net assets of common shareholders is 5.22%, 4.90%,
5.22%, 6.98% and 7.12%, respectively.
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 25
Notes to Financial Statements
Note 1. Investment Objectives
Aberdeen Global Income Fund, Inc. (the "Fund") was incorporated in Maryland on
June 28, 1991, as a closed-end, non-diversified investment company.
The Fund's principal investment objective is to provide high current income by
investing primarily in fixed-income securities denominated in the Commonwealth
Currencies. As a secondary investment objective, the Fund seeks capital
appreciation, but only when consistent with its principal investment objective.
The Fund will seek to achieve its investment objective through investment in
fixed-income securities denominated in the Commonwealth Currencies and in Global
Debt Securities. In order to comply with a rule adopted by the Securities and
Exchange Commission under the Investment Company Act of 1940 regarding fund
names, the Board of Directors has adopted an investment policy that, for as long
as the name of the Fund remains Aberdeen Global Income Fund, Inc., it shall be
the policy of the Fund normally to invest at least 80% of its net assets plus
the amount of any borrowings for investment purposes, in debt securities. This
80% investment policy is a non-fundamental policy of the Fund and may be changed
by the Board of Directors upon 60 days prior written notice to shareholders. The
ability of issuers of debt securities held by the Fund to meet their obligations
may be affected by economic developments in a specific industry, country or
region.
Note 2. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Basis of Presentation: The financial statements of the Fund are prepared in
accordance with accounting principles generally accepted in the United States of
America using the United States dollar as both the functional and reporting
currency. However, the Commonwealth Currencies (excluding New Zealand) are the
functional currencies for Federal tax purposes (see Taxes below).
Foreign Currency Translation: Foreign currency amounts are translated into
United States dollars on the following basis:
(i) market value of investment securities, other assets and liabilities -- at
the closing rates of exchange as reported by a major bank;
(ii) purchases and sales of investment securities, income and expenses -- at
the rates of exchange prevailing on the respective dates of such
transactions.
The Fund isolates that portion of the results of operations arising as a result
of
26 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
changes in the foreign exchange rates from the fluctuations arising from changes
in the market prices of the securities held at fiscal year end. Similarly, the
Fund isolates the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio securities
sold during the fiscal year.
Net realized foreign exchange losses includes realized foreign exchange gains
and losses from sales and maturities of portfolio securities, sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the amounts of
interest, discount and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net unrealized
foreign exchange gains include changes in the value of portfolio securities and
other assets and liabilities arising as a result of changes in the exchange
rate. Accumulated realized and unrealized foreign exchange gains (losses) shown
in the composition of net assets represent foreign exchange gains (losses) for
book purposes that may not have been recognized for tax purposes.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin, including
unanticipated movements in the value of the foreign currency relative to the
U.S. dollar.
The exchange rates of the Commonwealth Currencies utilized by the Fund at
October 31, 2004 were US$0.75 to A$1.00, US$0.82 to C$1.00, US$0.68 to NZ$1.00,
US$1.83 to (pound)1.00.
Security Valuation: The Fund's Board of Directors has adopted Pricing and
Valuation Procedures (the "Procedures") to be used in determining the value of
the assets held by the Fund. In accordance with the Procedures, investments are
stated at value. Investments for which market quotations are readily available
are valued at the last trade price on the date of determination as obtained from
a pricing source. If no such trade price is available, such investments are
valued at the quoted bid price or the mean between the quoted bid and asked
price on the date of determination as obtained from a pricing source.
Securities purchased with a maturity of less than 60 days are valued at
amortized cost. Securities purchased with a maturity of greater than 60 days are
valued at current market quotations until the 60th day prior to maturity. At
that time, the value of the security on the 61st day prior to maturity is
amortized on a straight-
Aberdeen Global Income Fund, Inc. 27
Notes to Financial Statements (continued)
line basis to value the security for the remaining 60 days.
Securities for which market quotations are not readily available (including
investments which are subject to limitations as to their sale) are to be valued
at fair value. As a general rule, whether or not the Fund is required to "fair
value price" an asset is dependent on the ready availability of current market
quotes or, even if readily available, the reliability of such quotes. Any assets
for which market quotations are not readily available or for which available
prices are not reliable, shall be determined in a manner that most fairly
reflects the asset's (or group of assets) "fair value" (i.e., the amount that
the Fund might reasonably expect to receive for the asset upon its current sale)
on the valuation date, based on a consideration of all available information.
The Procedures provide that in certain instances, including without limitation,
if there is a "stale price" for a portfolio security, in an emergency situation,
or if a significant event occurs after the close of trading of a portfolio
security, but before the calculation of the Fund's net asset value, the security
may be valued at its fair value.
Repurchase Agreements: In connection with transactions in repurchase agreements
with U.S. financial institutions, it is the Fund's policy that its
custodian/counterparty segregates the underlying collateral securities, the
value of which exceeds the principal amount of the repurchase transaction,
including accrued interest. To the extent that any repurchase transaction
exceeds one business day, the collateral is valued on a daily basis to determine
its adequacy. If the seller defaults and the value of the collateral declines or
if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses from
security and currency transactions are calculated on the identified cost basis.
Interest income is recorded on an accrual basis. Discounts and premiums on
securities purchased are accreted or amortized on an effective yield basis over
the estimated lives of the respective securities. Expenses are accrued on a
daily basis.
Derivative Financial Instruments: The Fund is authorized to use derivatives to
manage both currency and interest rate risk for global debt securities. With
respect to investments denominated in Commonwealth currencies, derivatives can
only be
28 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
used to manage interest rate risk. Losses may arise due to changes in the value
of the contract if the counterparty does not perform under the contract. The use
of derivative instruments involves, to varying degrees, elements of market risk
in excess of the amount recognized in the Statement of Assets and Liabilities.
Interest Rate Swap: The Fund may engage in certain interest rate swap
transactions to hedge the Fund's AMPS. An interest rate swap is an agreement
between two parties, which involves exchanging floating rate and fixed rate
interest payments for a specified period of time. Interest rate swaps involve
the accrual and exchange of interest payments between the parties. These
payments are recorded as realized gain/(loss).
During the term of the swap, changes in the value of the swap are recognized as
unrealized gains and losses by "marking-to-market" to reflect the market value
of the swap. When the swap is terminated, the Fund will record a realized gain
or loss equal to the difference, if any, between the proceeds from (or cost of)
the closing transaction and the Fund's basis in the contract. The Fund is
exposed to credit risk in the event of non-performance by the other party to the
interest rate swap. However, the Fund does not anticipate non-performance by any
counterparty.
Forward Currency Contracts: A forward currency contract involves an obligation
to purchase and sell a specific currency at a future date, which may be any
fixed number of days from the date of the contract agreed upon by the parties,
at a price set at the time of the contract. The foreign currency contract is
marked-to-market daily and the change in market value is recorded by the Fund as
an unrealized gain or loss. When the forward currency contract is closed, the
Fund records a realized gain or loss equal to the difference between the value
at the time it was opened and the value at the time it was closed.
Financial futures contracts: A futures contract is an agreement between two
parties to buy and sell a security for a set price on a future date. Upon
entering into a contract, the Fund deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as variation margin and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
Aberdeen Global Income Fund, Inc. 29
Notes to Financial Statements (continued)
contract at the time it was opened and the value at the time it was closed.
Options: When the Fund writes an option, an amount equal to the premium received
by the Fund is reflected as an asset and an equivalent liability. The amount of
the liability is subsequently marked to market to reflect the current market
value of the option written. When a security is purchased or sold through an
exercise of an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Fund enters
into a closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received). As of
October 31, 2004, there were no open option contracts.
Dividends and distributions: Dividends and distributions to common shareholders
are recorded on the ex-dividend date. These are based upon net investment income
and capital and currency gains determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These differences are primarily due to
amortization of premium and discount and differing treatments for foreign
currencies and loss deferrals. Dividends and distributions to preferred
shareholders are accrued on record date and are determined as described in Note
7.
Reclassification of Capital Accounts: For the year ended October 31, 2004, the
Fund decreased distributions in excess of net investment income by $148,863,
decreased net realized losses on investments by $56,046 and increased
accumulated net realized foreign exchange losses by $250,951 resulting in an
increase to paid-in-capital in excess of par by $46,042. These reclassifications
are a result of permanent differences primarily attributable to foreign currency
transactions, amortization methods on fixed income securities and accounting for
swap agreements. Net investment income, net realized losses on investments and
net assets were not affected by this change.
Taxes: For Federal income and excise tax purposes, substantially all of the
Fund's transactions are accounted for using the functional currencies.
Accordingly, only realized currency gains and losses resulting from the
repatriation of any of the Commonwealth Currencies into U.S. dollars or another
Commonwealth Currency and realized currency gains and losses on non-Commonwealth
currencies are recognized for U.S. tax purposes.
30 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
No provision has been made for United States of America Federal income taxes
because it is the Fund's policy to meet the requirements of the United States of
America Internal Revenue Code applicable to regulated investment companies and
to distribute substantially all of its taxable income to shareholders. Under the
applicable foreign tax law, a withholding tax may be imposed on interest and
discounts earned at various rates.
Use of Estimates: The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
Note 3. Agreements
In December 2003, the Fund's Board of Directors approved the transfer by
Aberdeen Asset Managers (C.I.) Limited ("AAMCIL") to Aberdeen Asset Management
Asia Limited ("AAMAL") of the rights and obligations of AAMCIL under the
management agreement and the advisory agreement with the Fund. Effective March
8, 2004, AAMAL became the investment manager of the Fund (the "Investment
Manager"). Aberdeen Asset Management Limited (the "Investment Adviser") serves
as the investment adviser to the Fund pursuant to an advisory agreement. The
Fund also has an agreement with Aberdeen Asset Management Inc. ("AAMI"), which
serves as administrator and investor relations services provider to the Fund.
The Investment Manager, the Investment Adviser and AAMI are direct or indirect
wholly-owned subsidiaries of Aberdeen Asset Management Plc. The Investment
Manager has entered into an agreement with CIBC World Markets, Inc. (the
"Consultant").
The Investment Manager makes investment decisions on behalf of the Fund on the
basis of recommendations and information furnished to it by the Investment
Adviser and the Consultant, including the selection of and the placement of
orders with brokers and dealers to execute portfolio transactions on behalf of
the Fund.
The management agreement provides the Investment Manager with a fee, computed
weekly and payable monthly, at the following annual rates: 0.65% of the Fund's
average weekly total net assets of both common and preferred shareholders up to
$200 million, 0.60% of such assets between $200 million and $500 million and
0.55% of such assets in excess of $500 million. The Investment Manager pays fees
to the Investment Adviser and the Consultant for their services rendered.
AAMCIL, the Fund's investment manager through
Aberdeen Global Income Fund, Inc. 31
Notes to Financial Statements (continued)
March 7, 2004 and AAMAL, the Fund's current investment manager, informed the
Fund that they paid an aggregate of $378,398 to the Investment Adviser and an
aggregate of approximately $4,500 to the Consultant during the year ended
October 31, 2004.
During the year ended October 31, 2004, Princeton Administrators, L.P.
("Princeton") served as administrator to the Fund pursuant to an agreement which
provided Princeton with a fee computed and payable monthly at the annual rate of
0.20% of the Fund's average weekly net assets of both common and preferred
shareholders, subject to a minimum annual payment of $150,000 ($12,500 per
month). Effective November 1, 2004, AAMI was appointed administrator pursuant to
an agreement under which AAMI receives a fee computed and payable at the annual
rate of 0.15% of the Fund's average weekly net assets of both common and
preferred shareholders.
Under terms of an Investor Relations Services Agreement, AAMI serves as the
Fund's investor relations services provider. This agreement provides AAMI with a
monthly retainer of $4,000 plus out-of-pocket expenses. During the year ended
October 31, 2004, the Fund incurred fees of $66,075 for the services of AAMI.
Investor relations fees and expenses in the Statement of Operations include
certain out-of-pocket expenses.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the year ended October 31, 2004 aggregated $30,996,492 and $28,317,843,
respectively.
As previously reported to shareholders, the Fund entered into an interest rate
swap agreement, based on an aggregate notional amount of $24,000,000, which
represents 80% of the total AMPS outstanding. Under the terms of the agreement,
the Fund receives a floating rate of interest (one month USD-LIBOR BBA rate) and
pays fixed rates of interest for the terms and based upon the notional amounts
set forth below:
Unrealized
Termination Notional Fixed Appreciation
Counterparty Date Amount (000) Rate (Depreciation)
--------------------------------------------------------------------------------
UBS AG October 31, 2005 $4,800 2.1025% $ 17,702
UBS AG October 31, 2006 4,800 2.6900% 14,530
UBS AG October 31, 2007 7,200 3.1600% (1,382)
UBS AG October 31, 2008 7,200 3.5400% (35,028)
--------
$ (4,178)
========
32 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
At October 31, 2004, the Fund had an outstanding forward currency contract to
sell foreign currency against United States dollars as follows:
A$ US$ US$
Foreign Currency Amount Amount Unrealized
Sale Contract Settlement Date Sold Purchased Depreciation
-----------------------------------------------------------------------------------------
Australian dollar November 2, 2004 $250,000 $186,375 $ (363)
-----------------------------------------------------------------------------------------
During the year ended October 31, 2004, the Fund entered into financial futures
contracts. Cash has been segregated with the broker to cover requirements for
the following open futures contracts. Details of open contracts at October 31,
2004 are as follows:
Purchases
Notional Unrealized
Amount Description Expiration Date Appreciation
----------------------------------------------------------------------------------------------
1,000 Australian Treasury Bond 6% -- 3 year December 2004 $2,966
10,000 Australian Treasury Bond 6% -- 10 year December 2004 163
------
$3,129
======
Note 5. Tax Information
The United States federal income tax basis of the Fund's investments and the net
unrealized appreciation as of October 31, 2004 were as follows:
Tax Basis of Net Unrealized
Investments Appreciation Depreciation Appreciation
--------------------------------------------------------------------------------
$147,527,315 $4,425,258 $2,396,885 $2,028,373
--------------------------------------------------------------------------------
Aberdeen Global Income Fund, Inc. 33
Notes to Financial Statements (continued)
The tax character of distributions paid during the fiscal years ended October
31, 2004 and October 31, 2003 was as follows:
October 31, October 31,
2004 2003
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary Income $7,119,747 $4,469,781
Net Long-Term
Capital Gains -- --
Tax Return of Capital -- 2,637,483
-----------------------------
Total Taxable Distribution $7,119,747 $7,107,264
=============================
As of October 31, 2004, the components of accumulated earnings on a tax basis
were as follows:
Undistributed ordinary income -- net $ 0
Undistributed long-term capital
gains -- net 0
------------
Total undistributed earnings $ 0
Capital loss carryforward (2,789,729)*
Unrealized gain/(losses) -- net 16,109,923**
------------
Total accumulated earnings/
(losses) -- net $ 13,320,194
============
* On October 31, 2004, the Fund had a net capital loss carryforward of
$2,789,729, of which $321,915 expires in 2009, $2,351,534 expires in 2010
and $116,280 expires in 2011. This amount will be available to offset like
amounts of any future taxable gains.
** The difference between book-basis and tax-basis unrealized gains/(losses)
is attributable to: the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, differing
treatments for foreign currencies and the tax deferral of losses on wash
sales.
Note 6. Common Stock
There were 300 million shares of $.001 par value common stock authorized and
9,284,656 shares outstanding at October 31, 2004.
On March 1, 2001, the Board of Directors approved a stock repurchase program.
The stock repurchase program allows the Fund to repurchase up to 10% of its
common stock in the open market during any 12-month period, if and when the
discount to net asset value is at least 10%. Through October 31, 2004, there
have been no share repurchases through this program.
Note 7. Preferred Stock
There are 100 million shares of $.001 par value of Auction Market Preferred
Stock ("Preferred Stock") authorized. The preferred shares have rights as
determined by the Board of Directors. The 1,200 shares of Preferred Stock
outstanding consist of one series, W-7. The Preferred Stock has a liquidation
value of $25,000 per share plus any accumulated but unpaid dividends whether or
not declared.
34 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (concluded)
Dividends on the Preferred Stock are cumulative at a rate typically reset every
twenty-eight days based on the results of an auction. Dividend rates ranged from
1.15% to 2.04% during the year ended October 31, 2004. Under the Investment
Company Act of 1940, the Fund may not declare dividends or make other
distributions on shares of common stock or purchase any such shares if, at the
time of the declaration, distribution or purchase, asset coverage with respect
to the outstanding Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated but
unpaid dividends. The Preferred Stock is also subject to mandatory redemption at
$25,000 per share plus any accumulated but unpaid dividends, whether or not
declared, if certain requirements relating to the composition of the assets and
liabilities of the Fund as set forth in the Charter are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of common
stock (one vote per share) and will vote together with holders of shares of
common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Fund's directors.
Note 8. Subsequent Dividends and Distributions
Subsequent to October 31, 2004, the Board of Directors of the Fund declared
distributions of $ 0.06 per common share payable on December 17, 2004 and
January 14, 2005 to common shareholders of record on November 30, 2004 and
December 31, 2004, respectively.
Subsequent to October 31, 2004, dividends and distributions declared and paid on
preferred shares totaled approximately $48,864 for the outstanding preferred
share series through November 26, 2004.
Aberdeen Global Income Fund, Inc. 35
Report of Independent Registered Public
Accounting Firm
To the Shareholders and the Board of Directors of
Aberdeen Global Income Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Aberdeen Global Income Fund, Inc.
(the "Fund") at October 31, 2004, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2004 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
December 21, 2004
36 Aberdeen Global Income Fund, Inc.
Federal Tax Information: Dividends and
Distributions (unaudited)
Common and Preferred Shareholders:
Of the cash distributions paid by the Fund during the taxable year ended October
31, 2004, 96.53% represents income from foreign sources. The Fund has elected to
pass through its foreign taxes to shareholders for the year ended October 31,
2004. Additionally, 1.52% of the cash distributions is attributable to foreign
withholding taxes.
The foreign taxes paid or withheld represent taxes incurred by the Fund on
interest received from foreign sources. Foreign taxes paid or withheld should be
included as foreign source taxable income with an offsetting deduction from
gross income or as a credit for taxes paid to foreign governments. You should
consult your tax advisor regarding the appropriate treatment of foreign taxes
paid.
ABERDEEN GLOBAL INCOME FUND, INC.
Aberdeen Global Income Fund, Inc. 37
Automatic Dividend Reinvestment and
Cash Purchase Plan (unaudited)
Common shareholders are automatically enrolled in the Fund's Automatic Dividend
Reinvestment and Cash Purchase Plan (the "Plan"). Under the Plan, all
distributions, net of any applicable withholding tax, will automatically be
reinvested by the Plan Agent in additional shares of common stock of the Fund
unless an election is made to receive distributions in cash. Generally,
shareholders who do not participate in the Plan will receive all distributions
in cash paid by check in United States dollars mailed directly to the
shareholders of record (or if the shares are held in street or other nominee
name, then to the nominee) by the Plan Agent. A shareholder whose shares are
held by a broker or nominee that is unable to participate in the Plan may be
required to have his shares re-registered in his own name to participate in the
Plan.
Effective July 26, 2004, The Bank of New York became the Plan Agent, replacing
EquiServe Trust Company, N.A. as Plan Agent. The Plan Agent serves as agent for
the shareholders in administering the Plan. Distributions payable to Plan
participants will be promptly invested. If the Fund declares a distribution
payable in stock to shareholders who are not Plan participants, then Plan
participants will receive that distribution in newly-issued shares of common
stock on identical terms and conditions.
In every other case, Plan participants will receive shares on the following
basis: if, on payable date, the market price of the Fund's common stock plus any
brokerage commission is equal to or exceeds net asset value per share, Plan
participants will receive newly-issued shares of the Fund's common stock valued
at the greater of net asset value per share or 95% of the then-current market
price. If, on the other hand, the net asset value per share, plus any applicable
brokerage commission, exceeds the market price at such time, the Plan Agent will
buy shares of common stock in the open market. If the market price plus any
applicable brokerage commission exceeds the net asset value per share as last
determined before the Plan Agent has completed its purchases, the Plan Agent
will suspend making open market purchases and shall invest the balance available
in newly issued shares valued at the greater of net asset value per share or 95%
of the then-current market value. All reinvestments are in full and fractional
shares carried to four decimal places.
As a result of the transfer of services from EquiServe Trust Company, N.A. to
The Bank of New York, certain fees associated with the Plan may have changed.
Fees payable by Plan participants are described below.
There is no direct charge to participants for reinvesting distributions, except
for brokerage commissions. The Plan Agent's fees for the handling of the
reinvestment of distributions are paid by the Fund. There will be no brokerage
commissions charged with respect to shares
38 Aberdeen Global Income Fund, Inc.
Automatic Dividend Reinvestment and
Cash Purchase Plan (unaudited) (concluded)
issued directly by the Fund. However, each participant pays a pro-rata share of
brokerage commissions incurred with respect to the Plan Agent's open market
purchases. Purchases and sales may be made through a broker affiliated with the
Plan Agent. The automatic reinvestment of distributions does not relieve
participants of any federal income tax that may be payable on such
distributions.
The Plan also allows participants to make voluntary cash investments by sending
additional funds by a check drawn on a US bank, in US currency, payable to the
Plan Agent in any amount of at least $100, with a maximum of $10,000 per month,
with an aggregate annual limit of $120,000 for the purchase of shares of the
Fund's common stock on the open market. Voluntary cash investments will be
invested on or before the 15th day of the month, and in no event more than 45
days after such date except where temporary curtailment or suspension of
purchases is necessary to comply with applicable provisions of the federal
securities law. Cash investments may be commingled with the funds held by the
Plan Agent for other shareholders of the Fund, and the average price (including
brokerage commissions) of all shares purchased by the Plan Agent will be the
price per share allocable to each participant. In the event a participant's
voluntary cash investment check is returned unpaid for any reason, the
participant will be charged a $20.00 return fee.
Participants in the Plan may withdraw some or all of their shares from the Plan
upon written notice or pursuant to telephonic procedures established by the Plan
Agent and will receive stock certificates for all full shares. The Plan Agent
will convert any fractional shares to cash at the then-current market price,
less a sales fee, and send a check to the participant for the proceeds. The
sales fee payable will be the lesser of $10 or the net proceeds from the sale of
the fractional share. If the transaction fee and commissions exceed the proceeds
from the sale of the fractional share, participants will receive a transaction
advice instead of a check. If, by giving proper notice to the Plan Agent,
participants request cash in lieu of shares upon any withdrawal from the Plan,
the Plan Agent will sell the shares and send the participant the proceeds, less
a sales fee of $10 plus brokerage commissions of $0.10 per share.
The Fund or the Plan Agent reserves the right to amend or terminate the Plan
either in full or partially upon 90 days written notice to each Plan
participant.
All questions concerning the Plan should be directed to the Plan Agent, The Bank
of New York, Shareholder Relations Department, P.O. Box 11258, Church Street
Station, New York, NY 10286 or by calling 1-800-432-8224.
Aberdeen Global Income Fund, Inc. 39
MANAGEMENT OF THE FUND (unaudited)
The names of the Directors and Officers of the Fund, their addresses, ages and
principal occupations during the past five years are provided in the tables
below. Directors that are deemed "interested persons" (as that term is defined
in Section 2(a)(19) of the Investment Company Act of 1940, as amended) of the
Fund, the Investment Manager or the Investment Adviser are included in the table
below under the heading "Interested Directors." Directors who are not interested
persons as described above are referred to in the table below under the heading
"Independent Directors."
BOARD OF DIRECTORS INFORMATION
====================================================================================================================================
INTERESTED DIRECTORS
====================================================================================================================================
Number of
Funds in Fund
Complex*
Term of Overseen by
Position(s) Office and Director Other Directorships
Held with Length of Principal Occupation(s) or Nominee Held by Director or
Name, Address & Age the Fund Time Served During Past Five Years for Director Nominee for Director
------------------------------------------------------------------------------------------------------------------------------------
Martin J. Gilbert** Chairman Term as Mr. Gilbert is one of the founding 2 Aberdeen
c/o Aberdeen Asset of Board; Director directors and the Chief Executive and Asia-Pacific Income
Management Asia Limited President expires 2007; an Executive Director of Aberdeen Fund, Inc.
21 Church Street Class III Director since Asset Management PLC, the parent
#01-01 Capital Square Two Director 2001 company of the Fund's Investment
Singapore 049480 Manager and Investment Adviser. He
Age: 49 has been President of the Fund, of
Aberdeen Asia-Pacific Income Fund,
Inc., and Aberdeen Australia Equity
Fund, Inc. since February 2004. He
has been Chairman of the Board of the
Fund and of Aberdeen Asia-Pacific
Income Fund, Inc. since 2001. He has
been a Director of Aberdeen Asset
Management Asia Limited, the Fund's
Investment Manager (effective March
8, 2004) since 1991. Mr. Gilbert has
also been a Director of Aberdeen
Asset Management Limited (the Fund's
Investment Adviser) and Aberdeen
Asset Managers (C.I.) Limited (the
Fund's Investment Manager to March 8,
2004) since 2000.
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS
====================================================================================================================================
David L. Elsum, A.M. Class I Term expires Mr. Elsum has been a member of the 3 Aberdeen Australia
c/o Aberdeen Asset Director 2005; Director State of Victoria Regulator-General Equity Fund, Inc.;
Management Asia Limited since 1992 Appeal Panel since 2001 and is Aberdeen
21 Church Street Chairman of Stodart Investment Pty. Asia-Pacific Income
#01-01 Capital Square Two Ltd. Fund, Inc.
Singapore 049480
Age: 67
------------------------------------------------------------------------------------------------------------------------------------
* Aberdeen Asia-Pacific Income Fund, Inc. and Aberdeen Australia Equity
Fund, Inc. have a common Investment Manager and Investment Adviser with
the Fund, and may thus be deemed to be part of the same "Fund Complex" as
the Fund.
** Mr. Gilbert is deemed to be an interested person because of his
affiliation with the Fund's Investment Manager and Investment Adviser.
Aberdeen Global Income Fund, Inc. 40 & 41
MANAGEMENT OF THE FUND (unaudited) (continued)
BOARD OF DIRECTORS INFORMATION (continued)
====================================================================================================================================
INDEPENDENT DIRECTORS (continued)
====================================================================================================================================
Number of
Funds in Fund
Complex*
Term of Overseen by
Position(s) Office and Director Other Directorships
Held with Length of Principal Occupation(s) or Nominee Held by Director or
Name, Address & Age the Fund Time Served During Past Five Years for Director Nominee for Director
------------------------------------------------------------------------------------------------------------------------------------
Neville J. Miles Class III Term expires Mr. Miles has been Chief Executive 3 Aberdeen Australia
2 Paddington Street Director 2007; Director Officer of Pulse International Pty. Equity Fund, Inc.;
Paddington, NSW 2021 since 1999 Ltd. (financial transactions Aberdeen
Australia processing) since 2004. Mr. Miles has Asia-Pacific Income
Age: 58 also served, for over five years, as Fund, Inc.
a Director of a number of Australian
companies.
------------------------------------------------------------------------------------------------------------------------------------
William J. Potter Class II Term expires Mr. Potter has been President of 3 Aberdeen Australia
c/o Aberdeen Asset Director 2006; Director Ridgewood Group International Ltd., Equity Fund, Inc.;
Management Asia Limited since 1992 an international consulting and Aberdeen
21 Church Street merchant banking company, since 1989. Asia-Pacific Income
#01-01 Capital Square Two He has also been Chairman of Meredith Fund, Inc.
Singapore 049480 Portfolio Management Inc. (investment
Age: 56 management) since 2004 and President
of Kingsdale Capital (USA) Inc.
(private placement broker) since
2004.
------------------------------------------------------------------------------------------------------------------------------------
Peter D. Sacks Class II Term expires Mr. Sacks has been Managing Partner 3 Aberdeen Australia
445 King Street West, Director 2006; Director of Toron Capital Markets, Inc. Equity Fund, Inc.;
4th Floor since 1992 (investment management) since 1988. Aberdeen
Toronto, Ontario Asia-Pacific Income
M5V 1K4 Fund, Inc.
Canada
Age: 59
------------------------------------------------------------------------------------------------------------------------------------
Dr. Anton E. Schrafl Preferred Term expires Dr. Schrafl has been Chairman of the 2 Aberdeen
Wiesenstrasse 7 Stock 2005; Director Board of Dynavest Ltd., (investment Asia-Pacific Income
8008 Zurich Director since 1993 management company) since 2002. He Fund, Inc.
Switzerland was Deputy Chairman of Holcim Limited
Age: 72 (global manufacturer and distributor
of cement and allied products) from
1999 until 2002.
------------------------------------------------------------------------------------------------------------------------------------
Aberdeen Global Income Fund, Inc. 42 & 43
MANAGEMENT OF THE FUND (unaudited) (continued)
BOARD OF DIRECTORS INFORMATION (concluded)
====================================================================================================================================
INDEPENDENT DIRECTORS (concluded)
====================================================================================================================================
Number of
Funds in Fund
Complex*
Term of Overseen by
Position(s) Office and Director Other Directorships
Held with Length of Principal Occupation(s) or Nominee Held by Director or
Name, Address & Age the Fund Time Served During Past Five Years for Director Nominee for Director
------------------------------------------------------------------------------------------------------------------------------------
E. Duff Scott Class I Term expires Mr. Scott has been Chairman of QLT 1
c/o Aberdeen Asset Director 2005; Director Inc. (biopharmaceutical company)
Management Asia Limited since 1992 since 1999.
21 Church Street
#01-01 Capital Square Two
Singapore 049480
Age: 68
------------------------------------------------------------------------------------------------------------------------------------
John T. Sheehy Preferred Term expires Mr. Sheehy has been Senior Managing 3 Aberdeen Australia
560 Sylvan Avenue Stock 2005; Director Director of B.V. Murray and Company Equity Fund, Inc.;
Englewood Cliffs, NJ Director since 1992 (investment banking) since 2001, and Aberdeen
07632 Managing Member of The Value Group Asia-Pacific Income
Age: 62 LLC (venture capital) since 1997. Fund, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Warren C. Smith Class III Term expires Mr. Smith has been Managing Editor 1
1002 Sherbrooke St. W. Director 2007; Director of BCA Publications (financial
Suite 1600 since 1992 publications) since 1982.
Montreal, Quebec
H3A 3L6
Canada
Age: 49
------------------------------------------------------------------------------------------------------------------------------------
* Aberdeen Asia-Pacific Income Fund, Inc. and Aberdeen Australia Equity
Fund, Inc. have a common Investment Manager and Investment Adviser with
the Fund, and may thus be deemed to be part of the same "Fund Complex" as
the Fund.
Aberdeen Global Income Fund, Inc. 44 & 45
MANAGEMENT OF THE FUND (unaudited) (concluded)
INFORMATION REGARDING OFFICERS WHO ARE NOT DIRECTORS
====================================================================================================================================
Term of
Position(s) Office* and
Held with Length of
Name, Address & Age the Fund Time Served Principal Occupation(s) During Past Five Years
------------------------------------------------------------------------------------------------------------------------------------
Alison Briggs Vice Since 2004 Director of Economics and Fixed Interest of the Fund's Investment
Level 6, President** Adviser, Aberdeen Asset Management Limited (for more than 5 years).
201 Kent Street
Sydney, NSW 2000
Australia
Age: 32
------------------------------------------------------------------------------------------------------------------------------------
Andrew Smith Vice Since 2004 Vice President of Murray Johnstone Group (from 1988 to 2000); Vice
45 Broadway, 21st Floor President -- President of Aberdeen Asset Management Inc. (since 2000).
New York, New York 10006 Compliance***
Age: 36
------------------------------------------------------------------------------------------------------------------------------------
Christian Pittard Treasurer Since 2001 Managing Director of Aberdeen Asset Managers (C.I.) Limited (the Fund's
No. 1 Seaton Place and Assistant former Investment Manager) (since 2000); Managing Director of Aberdeen
St. Helier, Jersey JE4 8YJ Secretary*** Private Wealth Management (affiliate of the Fund's Investment Manager
Channel Islands and Investment Adviser).
Age: 31
------------------------------------------------------------------------------------------------------------------------------------
Roy M. Randall Secretary*** Since 1986 Consultant to The Seidler Law Firm, Australian counsel to the Fund
Level 12, Chifley Tower (since 2003); Partner of Stikeman, Elliott, former Australian counsel to
2 Chifley Square the Fund (from 1997 through 2002).
Sydney, NSW 2000
Australia
Age: 68
------------------------------------------------------------------------------------------------------------------------------------
* Officers hold their positions with the Fund until a successor has been
duly elected and qualifies. Officers are generally elected annually at the
meeting of the Board of Directors next following the annual meeting of
stockholders. The officers were last elected on June 9, 2004, except Mr.
Smith who was elected on September 13, 2004.
** Ms. Briggs holds the same position with Aberdeen Asia-Pacific Income Fund,
Inc., which may be deemed to be part of the same "Fund Complex" as the
Fund.
*** Messrs. Smith, Pittard and Randall hold the same position(s) with Aberdeen
Australia Equity Fund, Inc. and Aberdeen Asia-Pacific Income Fund, Inc.,
both of which may be deemed to be a part of the same "Fund Complex" as the
Fund.
Aberdeen Global Income Fund, Inc. 46 & 47
[THIS PAGE INTENTIONALLY LEFT BLANK]
48 Aberdeen Global Income Fund, Inc.
Directors
Martin J. Gilbert, Chairman
David L. Elsum
Neville J. Miles
William J. Potter
Peter D. Sacks
Anton E. Schrafl
E. Duff Scott
John T. Sheehy
Warren C. Smith
Officers
Martin J. Gilbert, President
Alison Briggs, Vice President
Andrew Smith, Vice President --
Compliance
Christian Pittard, Treasurer and
Assistant Secretary
Roy M. Randall, Secretary
Beverley Hendry, Assistant Treasurer
Timothy Sullivan, Assistant Treasurer
Andy Williams, Assistant Treasurer
Sander M. Bieber, Assistant Secretary
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase, from time to time, shares of its
common stock in the open market.
[RECYCLED LOGO] Printed on post-consumer recycled paper
Aberdeen Global Income Fund, Inc. 49
Corporate Information
Investment Manager Aberdeen Asset Management Asia Limited
21 Church Street, #01-01 Capital Square Two
Singapore 049480
Investment Adviser Aberdeen Asset Management Limited
Level 6, 201 Kent Street
Sydney, NSW 2000, Australia
Consultant CIBC World Markets, Inc.
BCE Place, Canada Trust Tower, P.O. Box 500
Toronto, Ontario, M5J 2S8 Canada
Administrator Through October 31, 2004:
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
Effective November 1, 2004:
Aberdeen Asset Management Inc.
45 Broadway, 21st Floor
New York, NY 10006
Custodian State Street Bank and Trust Company
1 Heritage Drive
North Quincy, MA 02171
Transfer Agent The Bank of New York
Shareholder Relations Department, P.O. Box 11258
Church Street Station
New York, NY 10286
1-800-432-8224
Auction Agent Deutsche Bank Trust Company Americas
280 Park Avenue, 9th Floor
New York, NY 10018
Independent Registered PricewaterhouseCoopers LLP
Public Accounting Firm 300 Madison Avenue
New York, NY 10017
Legal Counsel Dechert LLP
1775 I Street, N.W.
Washington, DC 20006
Investor Relations Aberdeen Asset Management Inc.
45 Broadway, 21st Floor
New York, NY 10006
1-866-839-5233
InvestorRelations@aberdeen-asset.com
[LOGO]
Aberdeen
Aberdeen Asset Management Asia Limited
The common shares of Aberdeen Global Income Fund, Inc. are traded on the
American Stock Exchange under the symbol "FCO." Information about the Fund's net
asset value and market price is published weekly in Barron's and in the Monday
edition of The Wall Street Journal.
This report, including the financial information herein, is transmitted to the
shareholders of Aberdeen Global Income Fund, Inc. for their general information
only. It does not have regard to the specific investment objectives, financial
situation and the particular needs of any specific person. Past performance is
no guarantee of future returns.
Item 2 - Code of Ethics
(a) As of October 31, 2004, the Registrant had adopted a Code of Ethics
that applies to its principal executive officer, principal financial
officer and principal accounting officer which is designed to deter
wrongdoing and promote:
(i) Honest and ethical conduct, including the ethical handling of
actual or apparent conflicts of interest between personal and
professional relationships;
(ii) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits
to, the Commission and in other public communications made by
the registrant;
(iii) Compliance with applicable governmental laws, rules, and
regulations;
(iv) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(v) Accountability for adherence to the code.
Copies of the Code of Ethics may be requested free of charge by
calling toll free on 1-866-839-5233.
(c) During the period covered by this report, the Code of Ethics
referred to in 2(a) above was amended to reflect the appointment of
a Chief Compliance Officer pursuant to Rule 38a-1 of the Investment
Company Act of 1940. Appendix A of the Code of Ethics was also
amended to reflect the new President of the Fund, the new Chief
Compliance Officer and new executive officers.
(d) During the period covered by this report, there were no waivers to
the provisions of the code of ethics referred to in 2(a) above.
(e) Not applicable
(f) A copy of the Code of Ethics has been filed with this Form N-CSR as
Item 12(a)(1)
Item 3 - Audit Committee Financial Expert
The Board of Directors of the Registrant has designated William Potter and
Peter Sacks as Audit Committee Financial Experts. Mr Potter and Mr Sacks
are both considered by the Board to be independent directors as
interpreted under this Item 3.
Item 4 - Principal Accountant Fees and Services
(a) - (d) Below is a table reflecting the fee information requested in
Items 4(a) through (d):-
Fiscal (a) (b)(1) (c)(2) (d)
Year ended Audit Fees Audit-Related Fees Tax Fees All Other Fees
October 31, 2004 $93,000 $ 8,500 $ 5,500 Nil
October 31, 2003 $96,500 $24,500 $ 4,900 Nil
(1) The Audit-Related Fees are for reviewing the Basic Maintenance Tests
carried out in respect of the Registrant's Auction Market Preferred
Stock.
(2) The Tax Fees are for the completion of the Registrant's federal and
state tax returns.
(e) Below are the Registrant's Pre-Approval Policies and Procedures:-
(1) Audit Committee Pre-Approval Policies and Procedures
PRE-APPROVAL POLICIES AND PROCEDURES
as adopted by the
AUDIT COMMITTEES
of
ABERDEEN AUSTRALIA EQUITY FUND, INC.
ABERDEEN ASIA-PACIFIC INCOME FUND, INC.
ABERDEEN GLOBAL INCOME FUND, INC.
("FUNDS")
The Sarbanes-Oxley Act of 2002 ("Act") and rules adopted by the Securities
and Exchange Commission ("SEC") require that the Audit Committee of each
Fund pre-approve all audit services and non-audit services provided to the
Fund by its independent accountant ("Auditor").(1) The Act and such SEC
rules also require that the Audit Committee of each Fund pre-approve all
non-audit services provided by the Auditor to (i) the Fund's investment
manager, (ii) the Fund's investment adviser, and (iii) any entity
controlling, controlled by, or under common control with the investment
manager or investment adviser that provides ongoing services to the Fund
(entities in (i), (ii) and (iii), hereinafter "Service Affiliates")(2) if
the engagement for such Service Affiliates relates directly to the
operations and financial reporting of the Fund ("Covered Non-Audit
Services").(3)
The following policies and procedures govern the ways in which the Audit
Committee of each Fund will consider the pre-approval of audit and
non-audit services that the Auditor provides to the Fund, and Covered
Non-Audit services that the Auditor proposes to provide to Service
Affiliates.(4) These policies and procedures do not apply in the case of
audit services that the Auditor provides to Service Affiliates, nor do
they apply to any services that an audit firm other than the Auditor
provides to such entities.
These policies and procedures comply with applicable legal requirements
for pre-approval, and also provide a mechanism by which management of the
Funds and Service Affiliates may request and secure pre-approval of audit
and non-audit services in an orderly manner with minimal disruption to
normal business operations.
The following policies and procedures are adopted by the Audit Committee
of each Fund.
A. General
1. The Audit Committee must pre-approve all audit services and
non-audit services that the Auditor provides to the Fund.
2. The Audit Committee must pre-approve any engagement of the Auditor
to provide Covered Non-Audit Services to any Service Affiliate
during the period of the Auditor's engagement to provide audit
services to the Fund.
B. Pre-Approval of Audit Services to the Fund
1. The Audit Committee shall approve the engagement of the Fund's
Auditor for each fiscal year (the "Engagement"). The approval of the
Engagement shall not be delegated to a Designated Member. (See
Section D below.) In approving the Engagement, the Audit Committee
shall obtain, review and consider information concerning the
proposed Auditor sufficient to enable the Audit Committee to make a
reasonable evaluation of the Auditor's qualifications and
independence. The Audit Committee also shall consider the Auditor's
proposed fees for the Engagement, in light of the scope and nature
of the audit services that the Fund will receive.
----------
(1) The term "Auditor," as used in these procedures, means the firm engaged to
provide the Fund with services listed in Appendix A.
(2) Service Affiliates are listed in Appendix D.
(3) Examples of types of non-audit services that may be provided to the Fund
or a Service Affiliate are listed in Appendix B. Note that applicable law
also prohibits the provision of certain services by the Auditor to
entities in the "fund complex." The "fund complex" includes Service
Affiliates and other entities. These prohibited services are listed in
Appendix C. Fund Complex Entities are also listed in Appendix C.
(4) Unless otherwise indicated by the context, the term "non-audit services"
herein includes non-audit services for the Fund as well as Covered
Non-Audit Services for a Service Affiliate.
2. The Audit Committee shall report to the Fund's board of directors
("Board") regarding its approval of the Engagement and of the
proposed fees for the Engagement, and the basis for such approval.
3. Unless otherwise in accordance with applicable law, the Engagement,
in any event, shall require that the Auditor be selected by the
vote, cast in person, of a majority of the members of the Board who
are not "interested persons" of the Fund (as defined in Section
2(a)(19) of the Investment Company Act of 1940) ("Independent
Directors").
C. Pre-Approval of Non-Audit Services to the Fund and to Service
Affiliates - by Types or Categories of Services
1. The Audit Committee may pre-approve the provision of types or
categories of non-audit services for the Fund and Covered Non-Audit
Services for its Service Affiliates pursuant to this Section C.
2. Annually, at such time as the Audit Committee considers the
Engagement of the Auditor, management of the Fund and of the Service
Affiliates, in consultation with the Auditor, shall provide to the
Audit Committee, for its consideration and action, the following:
(a) a list of those types of non-audit services, if any, that the
Fund expects to request from the Auditor during the fiscal year; and
(b) a list of those types of Covered Non-Audit Services that Service
Affiliates expect to request from the Auditor during the fiscal
year.
3. The lists submitted to the Audit Committee shall describe the types
of non-audit services in reasonable detail and shall include an
estimated budget (or budgeted range) of fees where possible and such
other information as the Audit Committee may request.
4. Standard for Pre-Approval The Audit Committee, after appropriate
consideration of such information as it deems relevant, may
pre-approve a non-audit service that is not a prohibited service
(see Appendix C) if it specifically finds that the provision of such
service is consistent with, and will not impair, the ongoing
independence of the Auditor. In connection with any such
pre-approval, the Audit Committee may set such limits on fees and
other conditions as it believes to be appropriate.
5. The Audit Committee's pre-approval of the types of non-audit
services submitted pursuant to this Section C shall constitute
authorization for management of the Fund to utilize the Auditor for
the types of non-audit services so pre-approved, if needed or
desired during the fiscal year, subject to such conditions as may
have been set by the Audit Committee.
6. Fund management will distribute a list of the types of non-audit
services pre-approved by the Audit Committee pursuant to this
Section C to management of the Service Affiliates and the
appropriate partners of the Auditor. Periodically, the Auditor will
discuss with the Audit Committee those non-audit services that have
been or are being provided pursuant to this Section C.
D. Pre-Approval of Non-Audit Services to the Fund and to Service
Affiliates - Project-by-Project Basis
1. Non-audit services may be pre-approved on a project-by-project basis
pursuant to this Section D, subject to the Standard for Pre-Approval
in Section C.
2. The Audit Committee, from time to time, may, by resolution,
designate one or more of its members who are Independent Directors
(each a "Designated Member") to consider, on the Audit Committee's
behalf, (i) any non-audit services proposed to be provided to the
Fund that have not been pre-approved in accordance with these
Procedures, (ii) any Covered Non-Audit Services proposed to be
provided to any Service Affiliate, that have not been pre-approved
in accordance with these Procedures and (iii) any proposed material
change in the nature or cost of any non-audit service, including any
Covered Non-Audit Service, previously approved. The authority
delegated to the Designated Member shall be subject to such
conditions as the Audit Committee may specify by resolution from
time to time.
3. Management of the Fund or of the relevant Service Affiliate, in
consultation with the Auditor, may submit either to the Audit
Committee or to a Designated Member for its consideration and
action, a pre-approval request identifying one or more non-audit
service projects for the Fund or Covered Non-Audit Service projects
for a Service Affiliate, as well as any material changes proposed in
a service that has been pre-approved. Any request so submitted shall
describe the project or projects in reasonable detail and shall
include an estimated budget (or budgeted range) of fees and such
other information as the Audit Committee or Designated Member shall
request. For any material change in the nature or cost of a
pre-approved service, the request shall also describe reasons why
the change is requested. The Audit Committee or Designated Member,
as applicable, shall review the request subject to the Standard for
Review in Section C.
4. The Audit Committee or Designated Member, as applicable, will review
the requested non-audit service or proposed material change in such
service in light of the Standard for Pre-Approval in Section C. If
the review is by a Designated Member, such Designated Member will
either:
(a) pre-approve, pre-approve subject to conditions, or disapprove
any such requested service, or any proposed material change in
such service, whether to the Fund or to a Service Affiliate;
or
(b) refer such matter to the full Audit Committee for its
consideration and action.
In considering any requested non-audit service or proposed material
change in such service, the Designated Member shall take into
account any restrictions placed by the Audit Committee on his
pre-approval authority.
5. The Designated Member's pre-approval (or pre-approval subject to
conditions) of a requested non-audit service or proposed material
change in service pursuant to this Section D shall constitute
authorization for the management of the Fund or the Service
Affiliate, as the case may be, to utilize the Auditor for the
non-audit service so pre-approved. Any action by the Designated
Member in approving a requested non-audit service shall be presented
for ratification by the Audit Committee not later than at its next
regularly scheduled meeting.
E. Covered Non-Audit Services Provided to Covered Entities Pursuant to
Waiver
Note: It is generally expected that non-prohibited non-audit
services, even when they do not involve significant fees, will be
pre-approved in accordance with Section C or D.
1. The Act provides a limited exception to the requirement that
non-audit services (that are not prohibited services) must be
pre-approved. This exception is designed to prevent the
disqualification of the Auditor due to a minor oversight and is to
be used only rarely and only if each of the following conditions is
satisfied:
(a) The aggregate fees and costs of all non-audit services
(including Covered Non-Audit Services) that, but for the
limited exception provided by this Section E, would require
pre-approval by the Audit Committee constitutes no more than
five percent of the total fees and costs paid by the Fund and
Service Affiliates to the Auditor during the fiscal year
during which such non-audit services are provided;
(b) At the time of the engagement for such services, the Fund did
not recognize that the services were "non-audit services" that
required pre-approval; and
(c) Each such service is (i) brought promptly to the attention of
the Audit Committee, (ii) is approved prior to the completion
of the audit by the Audit Committee or a Designated Member, in
accordance with the Standard for Pre-Approval set forth in
Section C and (iii) is approved based upon a determination
that the service is eligible for the waiver provided by this
Section E.
F. Amendment; Annual Review
1. The Audit Committee may amend these procedures from time to time.
2. These procedures shall be reviewed periodically, as needed, by the
Audit Committee.
G. Recordkeeping
1. The Fund shall maintain a written record of all decisions made by
the Audit Committee or by a Designated Member pursuant to these
procedures, together with appropriate supporting material.
2. In connection with the approval of any non-audit service pursuant to
the de minimis exception provided in Section E of these procedures,
a record shall be made indicating that each of the conditions for
this exception has been satisfied.
3. A copy of these Procedures and of any amendments to these Procedures
shall be maintained and preserved permanently in an easily
accessible place. The written records referred t o in paragraph 1
and 2 of this Section G shall be maintained and preserved for six
years from the end of the fiscal year in which the actions recorded
were taken, for at least the first two years in an easily accessible
location.
APPENDIX A
AUDIT SERVICES
For purposes of these Procedures, "audit services" include the following
activities:
1. Annual audit of the Fund's financial statements and quarterly
reviews.
2. Other procedures, including review of tax provisions, that need to
be performed by the Auditor in order to provide an opinion on the
Fund's financial statements, including tests performed to evaluate
the Fund's internal control systems, review of information systems
and procedures.
3. Preparation of the Auditor's report on the Fund's internal controls
for financial reporting, and related procedures.
4. Services that generally only the Auditor can provide, such as
consents, comfort letters, assistance with and review of documents
filed with the SEC, and statutory audits.
APPENDIX B
NON-AUDIT SERVICES
For purposes of these Procedures, the following services are "non-audit
services." If the services would be provided to a Covered Entity and the
engagement would relate directly to the operations and financial reporting
of the Fund, these services would be Covered Non-Audit Services and, if
not prohibited, are subject to the pre-approval requirements of these
Procedures.
Audit-Related Services (traditionally performed by the firm engaged as
Auditor)
1. Audit of an employee benefit plan.
2. Due diligence procedures related to mergers and acquisitions.
3. Review of internal controls.
4. Consultations concerning financial accounting and reporting
standards.
5. Testing services related to a fund's Auction Market Preferred Stock,
as applicable.
Tax Services
1. Tax compliance services, including preparation of tax returns.
2. Tax planning and advice.
Other Non-Audit Services
1. Advisory and consultation services.
2. Other non-audit services not listed above.
APPENDIX C
PROHIBITED SERVICES
In considering whether to pre-approve a service, the Audit Committee
should be aware that the Auditor is prohibited from providing certain
services to any Fund Complex Entity, subject to limited exceptions noted
below. Fund Complex Entities include:
1. The Fund, its investment manager and investment adviser;
2. Any entity controlled by or controlling the Fund's investment
manager or investment adviser, or any entity under common
control with the Fund's investment manager or investment
adviser if such entity (a) is an investment manager or
investment adviser, or (b) is in the business of providing
administrative, custodian, underwriting, or transfer agent
services to any investment company or investment adviser; and
3. Any investment company (including entities that would be
investment companies but for the exclusions provided by
Section 3(c) of the Investment Company Act of 1940) advised by
the Fund's investment manager or investment adviser or by an
entity in paragraph 2, above.
Note: The term "investment adviser" for this purpose does not include a
sub-adviser whose role is primarily portfolio management and that is
subcontracted with or overseen by another investment adviser.
The following entities are "Fund Complex Entities:"
Investment Managers/Advisers:
Aberdeen Asset Management Limited
Aberdeen Asset Managers (CI) Limited
Aberdeen Asset Managers Ltd.
Aberdeen Asset Management Asia Ltd.
Aberdeen Asset Management PLC
Funds:
Aberdeen Australia Equity Fund, Inc.
Aberdeen Asia-Pacific Income Fund, Inc.
Aberdeen Global Income Fund, Inc.
Aberdeen Asia-Pacific Income Investment Company Limited
The following services may not be provided by the Fund's Auditor to a Fund
Complex Entity, subject to the exceptions noted:
1. Bookkeeping or other services related to the accounting records or
financial statements of a Fund Complex Entity, including;
o Maintaining or preparing the accounting records for a Fund
Complex Entity;
o Preparing a Fund Complex Entity's financial statements that
are filed with the Securities Exchange Commission ("SEC"), or
that form the basis that form the basis for such financial
statements; or
o Preparing or originating source data underlying a Fund Complex
Entity's financial statements.
2. Financial information systems design and implementation, including:
o Directly or indirectly operating, or supervising the operation
of, a Fund Complex Entity's information system or managing a
Fund Complex Entity's local area network.
o Designing or implementing a hardware or software system that
aggregates source data underlying the financial statements or
generates information that is significant to a Fund Complex
Entity's financial statements or other financial information
systems taken as a whole.
3. Appraisal or valuation services, fairness opinions, or
contribution-in-kind reports.
4. Actuarial services. This category includes any actuarially-oriented
advisory service involving the determination of amounts recorded in
a Fund Complex Entity's financial statements and related accounts.
This prohibition does not apply to providing assistance to a Fund
Complex Entity in understanding the methods, models, assumptions,
and inputs used in computing an amount.
5. Internal audit outsourcing services. This category includes any
internal audit service for a Fund Complex Entity that has been
outsourced by the Fund Complex Entity that relates to the Fund
Complex Entity's internal accounting controls, financial systems, or
financial statements.
Exception: The foregoing services 1-5 may be provided if the Audit
Committee reasonably concludes that the results of these services will not
be subject to audit procedures during an audit of a Fund Complex Entity's
financial statements.
6. Management functions. This category includes acting, temporarily or
permanently, as a director, officer, or employee of a Fund Complex
Entity, or performing any decision-making, supervisory, or ongoing
monitoring function for a Fund Complex Entity.
7. Human resources. Services in this category are:
o searching for or seeking out prospective candidates for
managerial, executive, or director positions;
o engaging in psychological testing, or other formal testing or
evaluation programs;
o undertaking reference checks of prospective candidates for an
executive or director position;
o acting as a negotiator on behalf of a Fund Complex Entity,
such as determining position, status or title, compensation,
fringe benefits, or other conditions of employment; or
o recommending, or advising a Fund Complex Entity to hire, a
specific candidate for a specific job (except that the Fund's
independent accountant may, upon request by a Fund Complex
Entity, interview candidates and advise the Fund Complex
Entity on the candidate's competence for financial accounting,
administrative, or control positions).
8. Broker-dealer, investment adviser, or investment banking services.
Services in this category are:
o acting as a broker-dealer (registered or unregistered),
promoter, or underwriter, on behalf of a Fund Complex Entity;
o making investment decisions on behalf of a Fund Complex
Entity, or otherwise having discretionary authority over an
audit client's investments;
o executing a transaction to buy or sell an audit client's
investment; or
o having custody of assets of a Fund Complex Entity, such as
taking temporary possession of securities purchased by a Fund
Complex Entity.
9. Legal services. A prohibited legal service is any service to a Fund
Complex Entity that, under circumstances in which the service is
provided, could be provided only by someone licensed, admitted, or
otherwise qualified to practice law in the jurisdiction in which the
service is provided.
10. Expert services unrelated to the audit. This category includes
providing an expert opinion or other expert service for a Fund
Complex Entity, or a Fund Complex Entity's legal representative, for
the purpose of advocating a Fund Complex Entity's interests in
litigation or in a regulatory or administrative proceeding or
investigation. This prohibition is not applicable to cases in which
the Fund's independent accountant provides a factual account,
including testimony, of work performed, or explains the positions
taken or conclusions reached during the performance of any services
provided by the accountant to a Fund Complex Entity.
APPENDIX D
SERVICE AFFILIATES
Any non-prohibited Covered Non-Audit Service provided to the following
entities must be pre-approved as provided in these Procedures:
Aberdeen Asset Management Limited
Aberdeen Asset Managers (CI) Limited
Aberdeen Asset Managers Ltd.
Aberdeen Asset Management Asia Ltd.
Item 4 continued
(2) None of the services described in each of paragraphs (b)
through (d) of this Item involved a waiver of the pre-approval
requirement by the Audit Committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) Non-Audit Fees
Fiscal Year Ended Fiscal Year Ended
October 31, 2004 October 31, 2003
Registrant $14,000 $29,400
Registrant's Investment Manager:-
Prior to March 8, 2004 -
Aberdeen Asset Managers (C.I.) Limited Nil $29,000
Effective March 8, 2004 -
Aberdeen Asset Management Asia Limited Nil Nil
(h) The Registrant's Audit and Valuation Committee of the Board of
Directors has considered whether the provision of non-audit services
that were rendered to the Registrant's investment adviser (not
including any subadviser whose role is primarily portfolio
management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or
under common control with the investment adviser that provides
ongoing services to the Registrant that were not pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's independence
and has concluded that it is.
Item 5 - Audit Committee of Listed Registrants
(a) The Registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Securities
Exchange Act of 1934, as amended.
The audit committee members are:
William J. Potter
Peter D. Sacks
E. Duff Scott
(b) Not applicable
Item 6 - Schedule of Investments
Included as part of the report to shareholders filed under Item 1 of this
Form N-CSR
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Pursuant to the Registrant's Proxy Voting Policy and Procedures, the
Registrant has delegated responsibility for its proxy voting to its
Investment Manager and Investment Adviser, provided that the Registrant's
Board has the opportunity to periodically review the Investment Manager's
and Investment Adviser's proxy voting policies and material amendments
thereto. The Registrant's Board of Directors most recently ratified the
proxy voting policies of the Investment Manager and Investment Adviser in
September 2003. The Registrant's Proxy Voting Policy and Procedures, and
the policies of the Registrant's Investment Manager and Investment
Adviser, are currently under review for possible revision.
The proxy voting policies of the Registrant and its Investment Manager and
Investment Adviser appear below:-
Proxy Voting Policies and Procedures of the Registrant
I. Statement of Policy
The following are general proxy voting policies and procedures ("Policies
and Procedures") adopted by the Aberdeen investment companies that are
registered with the U.S. Securities and Exchange Commission ("SEC") under
the Investment Company Act of 1940, as amended ("1940 Act"), ("Funds" and
each a "Fund")(5) and by the Boards of Directors ("Boards") which oversee
the Funds with respect to voting securities held by the Funds. These
Policies and Procedures are adopted to ensure compliance with Rule 30b1-4
of the 1940 Act and other applicable obligations of the Funds under the
rules and regulations of the SEC and interpretations of its staff
("Staff"). It is the policy of the Funds to seek to assure that proxies
received by each Fund are voted in the best interest of each Fund's
stockholders.
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(5) Currently, the only Funds are closed-end funds consisting of Aberdeen
Australia Equity Fund, Inc. ("IAF"), Aberdeen Asia-Pacific Income Fund,
Inc. ("FAX"), and Aberdeen Global Income Fund, Inc. ("FCO"). These
Policies and Procedures will only be implemented by the Funds to the
extent that they invest in voting securities. At this time, FAX and FCO
invest only in fixed income, or non-voting, securities. Each Fund will
file a disclosure report to the extent required by law.
II. Definitions
A. "Best interest of Fund stockholders" - means stockholders' best
economic interest over the long term, i.e., the common interest that all
stockholders have in seeing the value of a common investment increase over
time. Stockholders may have differing political or social interests, but
their best economic interest is generally uniform.
B. "Conflict of interest" - means circumstances when a proxy vote
presents a conflict between the interests of Fund stockholders, on the one
hand, and those of the Fund's investment manager,(6) investment
adviser,(7) principal underwriter, or an affiliated person of the Fund,
its Manager, Adviser, or principal underwriter, on the other, in how
proxies are voted. In practical terms, these circumstances generally would
arise when a Fund's Manager or Adviser knowingly does business with a
particular proxy issuer or closely affiliated entity, and may appear to
have a material conflict between its own interests and the interests of
stockholders in how proxies of that issuer are voted. A conflict might
exist in circumstances when the Fund's Manager or Adviser has actual
knowledge of a material business arrangement between a particular proxy
issuer (or closely affiliated entity) and the parent company or a
corporate affiliate of the Fund's Manager or Adviser. The Funds believe
that a conflict of interest generally would not arise merely because a
proxy issuer has a material business arrangement with a Fund's principal
underwriter, or with an affiliated person of the principal underwriter or
the Funds (other than a Fund's Manager or Adviser or their respective
parent company), because (1) each Fund's Manager or Adviser will generally
make proxy voting decisions for the Fund under the delegation arrangements
described below; (2) each Fund's principal underwriter is not affiliated
with its Manager or Adviser and will not have any input into the Manager's
or Adviser's proxy voting decisions for the Fund; (3) other affiliated
persons of the principal underwriter or the Fund (other than the Fund's
Manager or Adviser) likewise will not have any input into proxy voting
decisions for the Fund; and (4) each Fund's Manager or Adviser is unlikely
to be aware of, or have any interest in, any business arrangement between
the proxy issuer and the Fund's principal underwriter, or between the
proxy issuer and an affiliated person of the principal underwriter or the
Fund.
III. Delegation of Responsibility for Proxy Voting
A. Each Fund's Board annually evaluates its Fund's contract with its
Manager and Adviser, and decides whether to renew the contract. This
process gives each Fund an annual opportunity to ensure that its Manager's
and Adviser's investment philosophy is generally consistent with its
investment objectives and the best economic interests of its stockholders.
B. Because the investment philosophy of each Fund's Manager and
Adviser is generally consistent with the investment objectives of the Fund
and the best economic interests of Fund stockholders, investment decisions
for each Fund should generally be consistent with its Manager's and
Adviser's philosophy. In proxy voting decisions, as in other investment
decisions, each Fund's Manager or Adviser is in the best position to
determine whether a particular proxy proposal is consistent with its
philosophy, and therefore generally consistent with the investment
objectives of the Fund and the best economic interests of Fund
stockholders.
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(6) Aberdeen Asset Management Asia Limited serves as investment manager
("Manager") to each Fund.
(7) Aberdeen Asset Management Limited serves as investment adviser ("Adviser")
to each Fund.
C. Accordingly, each Fund has chosen to delegate all responsibility
for proxy voting to its Manager and Adviser, provided that each Fund's
Board has the opportunity to periodically review and approve their proxy
voting policies and any material amendments (and that the policies
contains provisions to address any conflicts of interest as described
below). The Trade Processing Department of the Manager will serve as the
Proxy Administrator and will take responsibility for ensuring, among other
things, that the vote for each proxy is cast in accordance with the proxy
voting policies and procedures of the Manager and the Adviser. A Proxy
Committee of the Adviser will take responsibility for determining whether
and how to vote each proxy, whether a conflict of interest exists, and how
such conflicts are to be resolved in accordance with the proxy voting
policies and procedures of the Manager and the Adviser. Under this
delegation, the Manager and Adviser may vote, abstain from voting, or take
no action on proxies for a Fund in any manner consistent with the
Manager's and Adviser's proxy voting policies (subject to provisions for
addressing conflicts of interest). Each Fund may revoke all or part of
such delegation at any time by a vote of its Board. In the event that a
Fund revokes the delegation of proxy voting responsibility to its Manager
and Adviser, the Fund will assume full responsibility for ensuring that
proxies are voted in the best interest of its stockholders, and will
promptly notify stockholders of the revocation. Thereafter, such Fund will
vote proxies of portfolio securities consistently with the policies of its
Manager and Adviser, or develop its own basis for voting on particular
matters.
D. This delegation generally applies to all proxy voting matters on
which each Fund may vote, such as corporate governance matters (including
changes in the state of incorporation, mergers and other corporate
restructurings, and anti-takeover provisions such as staggered boards,
poison pills, and supermajority provisions); changes to capital structure,
including increases and decreases of capital and preferred stock issuance;
stock option plans and other management compensation issues; and social
and corporate responsibility issues. This delegation permits the Manager
and Adviser to vote (or abstain from voting or take no action on) proxies
relating to matters that may affect substantially the rights or privileges
of the holders of securities to be voted, and to vote based on the
Adviser's decisions or on provisions of the Manager's and Adviser's proxy
policies that may support or give weight to the views of management of a
portfolio company.
IV. Conflicts of Interest
A. Each Fund recognizes that in unusual circumstances, a conflict of
interest in how proxies are voted may appear to exist, such as when its
Manager or Adviser knowingly does business with a particular proxy issuer
or closely affiliated entity or has actual knowledge of a material
business arrangement between a particular proxy issuer or closely
affiliated entity, and the adviser's parent or an affiliated subsidiary.
B. In those circumstances, to avoid any appearance concerns, each
Fund believes it is appropriate for its Manager or Adviser to follow an
alternative voting procedure rather than to vote proxies in the Manager's
or Adviser's sole discretion. Some examples of acceptable alternative
voting procedures for resolving conflicts of interest include the
following:
(1) Causing the proxies to be "echo voted" or "mirror voted" in the
same proportion as the votes of other proxy holders that are not
Fund stockholders;
(2) Causing the proxies to be voted in accordance with the
recommendations of an independent service provider that the Manager
or Adviser may use to assist it in voting proxies;
(3) Notifying a Fund's Board, a designated Board committee or a
representative of either, of the conflict of interest and seeking a
waiver of the conflict to permit the Manager or Adviser to vote the
proxies as it chooses under its usual policy; or
(4) Forwarding the proxies to a Fund's Board, a designated Board
committee or a representative of either, so that the Board, the
committee or the representative may vote the proxies itself.
C. Each Fund generally delegates all responsibility for resolving
conflicts of interest to the Fund's Adviser, provided that the Adviser's
proxy voting policy (as approved by the Fund's Board) includes acceptable
alternative voting procedures for resolving material conflicts of
interest, such as the procedures described above. Under this delegation,
the Adviser may resolve conflicts of interest in any reasonable manner
consistent with the alternative voting procedures described in its proxy
voting policy. Each Fund may revoke all or part of this delegation at any
time by a vote of its Board. In the event that a Fund revokes the
delegation of responsibility for resolving conflicts of interest to the
Adviser, the Fund will seek to resolve any conflicts of interest in the
best interest of stockholders. In doing so, the Fund may follow any of the
procedures described in Paragraph III.B., above.
V. Disclosure of Policy or Description/Proxy Voting Record
A. Each Fund, unless it invests exclusively in non-voting
securities, will disclose its proxy voting policy or a description of it
(and its Manager's and Adviser's proxy voting policy, or a description of
them), in the Fund's annual report on Form N-CSR (beginning with the first
annual report filed on or after July 1, 2003). The Fund will disclose that
this proxy voting policy or a description of it (and the Manager's and
Adviser's proxy voting policy or a description) is available without
charge, upon request, (1) by calling, toll-free, 1-800-522-5465; and (2)
on the SEC's website at http://www.sec.gov. Upon any request for a proxy
voting policy or description of it, the policy or the description (or a
copy of the most recent annual report containing the policy or
description) will be sent by first-class mail or other equally prompt
delivery method within three business days of receipt of the request.
B. Each Fund will also disclose in its annual report (beginning with
the first annual report filed on or after August 31, 2004) that
information is available about how the Fund voted proxies during the most
recent twelve-month period ended June 30, (1) by calling, toll-free,
1-800-522-5465; and (ii) on the SEC's website at http://www.sec.gov. Upon
any request for the Fund's proxy voting record, a copy of the information
disclosed in its most recent Form N-PX will be sent by first-class mail or
other equally prompt delivery method within three business days of receipt
of the request.
C. Each Fund will file Form N-PX, completed and signed in the manner
required, containing its proxy voting record for the most recent
twelve-month period ended June 30 with the SEC.
D. Each Fund will disclose the following information on Form N-PX
for each matter relating to a portfolio security considered at any
stockholder meeting held during the period covered by the report and with
respect to which the Fund was entitled to vote:
o The name of the issuer of the portfolio security;
o The exchange ticker symbol of the portfolio security except to
the extent not available through reasonably practicable means;
o The Council on Uniform Securities Identification Procedures
("CUSIP") number for the portfolio security except to the
extent not available through reasonably practicable means;
o The stockholder meeting date;
o A brief identification of the matter voted on;
o Whether the matter was proposed by the issuer or by a security
holder;
o Whether the Fund cast its vote on the matter;
o How the Fund cast its vote (e.g., for or against proposal, or
abstain; for or withhold regarding election of directors); and
o Whether the Fund cast its vote for or against management.
Adopted effective December 9, 2004.
Proxy Voting Policies and Procedures of the Registrant's Investment
Manager and Investment Adviser
Aberdeen U.S. Registered Advisers
Proxy Voting Policies and Procedures
The following are proxy voting policies and procedures ("Policies and
Procedures") adopted by affiliated investment advisers registered with the
U.S. Securities and Exchange Commission ("SEC") under the Investment
Advisers Act of 1940, as amended ("Advisers Act"), that are subsidiaries
of Aberdeen Asset Management PLC ("AAM"); including, specifically,
Aberdeen Asset Managers (C.I.) Limited, a Channel Islands corporation
("Aberdeen Jersey"); Aberdeen Asset Management Limited, an Australian
corporation ("Aberdeen AU"); Aberdeen Fund Managers Inc. (d/b/a Aberdeen
Asset Management Inc.), a Delaware corporation ("Aberdeen FL"), and
Aberdeen Asset Management Asia Limited, a Singapore corporation ("Aberdeen
Singapore") (collectively referred to herein as "Aberdeen Advisers" and
each an "Aberdeen Adviser") (collectively with AAM, "Aberdeen").(8)
Pursuant to a Memorandum of Understanding ("MOU"), Aberdeen Singapore and
Aberdeen Asset Managers Ltd ("Aberdeen UK"), a non-U.S. registered
adviser, provide portfolio management resources to certain U.S. funds or
clients of Aberdeen FL which include substantive advice on voting proxies
for certain equity securities. In addition, Aberdeen Singapore and
Aberdeen UK have entered into a similar MOU with Aberdeen Jersey and
Aberdeen AU under which either entity may also provide substantive advice
on proxy voting to certain U.S. funds or clients of Aberdeen Jersey and
Aberdeen AU. To the extent that Aberdeen UK provides advisory services to
any clients of Aberdeen FL or to U.S. clients of Aberdeen Jersey or
Aberdeen AU, Aberdeen UK will follow these Policies and Procedures as part
of providing such advisory services. These Policies and Procedures are
adopted to ensure compliance by the Aberdeen Advisers with Rule 206(4)-6
under the Advisers Act and other applicable fiduciary obligations under
rules and regulations of the SEC and interpretations of its staff with
respect to proxies for voting securities held by client portfolios.
Clients may consist of investment companies registered under the
Investment Company Act of 1940, as amended ("1940 Act") ("Funds" and each
a "Fund"), and other U.S. residents as well as non-U.S. registered funds
or clients. Any Aberdeen Adviser located in the United States follows
these Policies and Procedures for each of its respective clients as
required under the Advisers Act and other applicable law, unless expressly
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(8) These Policies and Procedures address proxy voting considerations under
U.S. law and regulation and do not address the laws or requirements of
other jurisdictions.
directed by a client in writing to refrain from voting that client's
proxies or to vote in accordance with the client's proxy voting policies
and procedures. Aberdeen Advisers located outside the U.S. may provide
proxy voting services to their non-U.S. based clients in accordance with
the jurisdiction in which the client is located. Aberdeen Advisers who
advise or subadvise the Funds follow both these Policies and Procedures
and the proxy voting policies and procedures adopted by the Funds and
their Boards of Directors.
I. Definitions
A. "Best interest of clients". Clients' best economic interests over
the long term -- that is, the common interest that all clients share in
seeing the value of a common investment increase over time. Clients may
have differing political or social interests, but their best economic
interest is generally uniform.
B. "Material conflict of interest". Circumstances when an Aberdeen
Adviser or any member of senior management, portfolio manager or portfolio
analyst knowingly does business with a particular proxy issuer or closely
affiliated entity, which may appear to create a material conflict between
the interests of the Aberdeen Adviser and the interests of its clients in
how proxies of that issuer are voted. A material conflict of interest
might also exist in unusual circumstances when Aberdeen has actual
knowledge of a material business arrangement between a particular proxy
issuer or closely affiliated entity and an affiliate of an Aberdeen
Adviser.
II. General Voting Policies
A. Client's Best Interest. These Policies and Procedures are
designed and implemented in a way that is reasonably expected to ensure
that proxies are voted in the best interests of clients. Proxies are voted
with the aim of furthering the best economic interests of clients,
promoting high levels of corporate governance and adequate disclosure of
company policies, activities and returns, including fair and equal
treatment of stockholders.
B. Shareholder Activism. Aberdeen Advisers seek to develop
relationships with the management of portfolio companies to encourage
transparency and improvements in the treatment of employees, owners and
stakeholders. Thus, Aberdeen Advisers may engage in dialogue with the
management of portfolio companies with respect to pending proxy voting
issues.
C. Case-by-Case Basis. These Policies and Procedures are guidelines.
Each vote is ultimately cast on a case-by-case basis, taking into
consideration the contractual obligations under the advisory agreement or
comparable document, and all other relevant facts and circumstances at the
time of the vote. Aberdeen Advisers may cast proxy votes in favor of
management proposals or seek to change the views of management,
considering specific issues as they arise on their merits. Aberdeen
Advisers may also join with other investment managers in seeking to submit
a shareholder proposal to a company or to oppose a proposal submitted by
the company. Such action may be based on fundamental, social,
environmental or human rights grounds.
D. Individualized. These Policies and Procedures are tailored to
suit Aberdeen's advisory business and the types of securities portfolios
Aberdeen Advisers manage. To the extent that clients (e.g., investment
companies, corporations, pension plans) have adopted their own procedures,
Aberdeen Advisers may vote the same securities differently depending upon
clients' directions.
E. Material Conflicts of Interest. Material conflicts are resolved
in the best interest of clients. When a material conflict of interest
between an Aberdeen Adviser and its respective client(s) is identified,
the Aberdeen Adviser will choose among the procedures set forth in Section
IV.B.2. below, to resolve such conflict.
F. Limitations. The circumstances under which Aberdeen may take a
limited role in voting proxies, include the following:
1. No Responsibility. Aberdeen Advisers will not vote proxies
for client accounts in which the client contract specifies that Aberdeen
will not vote. Under such circumstances, the clients' custodians are
instructed to mail proxy material directly to such clients.
2. Limited Value. Aberdeen Advisers may abstain from voting a
client proxy if the effect on shareholders' economic interests or the
value of the portfolio holding is indeterminable or insignificant.
Aberdeen Advisers may also abstain from voting the proxies of portfolio
companies held in their passively managed funds. Proxies with respect to
securities that have been sold before the date of the shareholders meeting
and are no longer held by a client generally will not be voted.
3. Unjustifiable Costs. Aberdeen may abstain from voting a
client proxy for cost reasons (e.g., non-U.S. securities).
4. Securities Lending Arrangements. If voting securities are
part of a securities lending program, Aberdeen may be unable to vote while
the securities are on loan.
5. Share Blocking. Certain jurisdictions may impose share
blocking restrictions at various times which may prevent Aberdeen from
exercising its voting authority.
6. Special Considerations. Aberdeen's responsibilities for
voting proxies are determined generally by its obligations under each
advisory contract or similar document. If a client requests in writing
that an Aberdeen Adviser vote its proxy in a manner inconsistent with
these Policies and Procedures, Aberdeen may follow the client's direction
or may request that the client vote the proxy directly.
G. Sources of Information. Aberdeen may conduct research internally
and/or use the resources of an independent research consultant. Aberdeen
may consider legislative materials, studies of corporate governance and
other proxy voting issues, and/or analyses of shareholder and management
proposals by a certain sector of companies, e.g., Fortune 500 companies.
H. Subadvisers. To the extent that an Aberdeen Adviser may rely on
subadvisers, whether affiliated or unaffiliated, to manage any client
portfolio on a discretionary basis, the Aberdeen Adviser will delegate
responsibility for voting proxies to the subadviser. However, such
subadvisers will be required either to follow these Policies and
Procedures or to demonstrate that their proxy voting policies and
procedures are consistent with these Policies and Procedures or otherwise
implemented in the best interests of Aberdeen clients.
I. Availability of Policies and Procedures. Aberdeen Advisers will
provide clients with a copy of these Policies and Procedures, as revised
from time to time, upon request.
J. Disclosure of Vote. As disclosed in Part II of each Aberdeen
Adviser's Form ADV, a client may obtain information on how its proxies
were voted by requesting such information from its Aberdeen Adviser.
Aberdeen Advisers do not generally disclose client proxy votes to third
parties, other than as required for Funds, unless specifically requested,
in writing, by the client.
III. Specific Voting Policies
A. General Philosophy.
o Support existing management on votes on the financial
statements of a company and the election of the Board of
Directors;
o Vote for the acceptance of the accounts unless there are
grounds to suspect that either the accounts as presented
or audit procedures used, do not present an accurate
picture of company results; and
o Support routine issues such as the appointment of
independent auditors, allocation of income and the
declaration of stock (scrip) dividend proposals provided
there is a cash alternative.
B. Anti-takeover Measures. Aberdeen Advisers vote on anti-takeover
measures on a case-by-case basis taking into consideration such factors as
the long-term financial performance of the target company relative to its
industry competition. Key measures of performance will include the growth
rates for sales, operating income, net income and total shareholder
returns. Other factors which will be considered include margin analysis,
cash flow and debt levels.
C. Proxy Contests for Control. Aberdeen Advisers vote on proxy
contests for control on a case-by-case basis taking into consideration
such factors as long-term financial performance of the target company
relative to its industry, management's track record, background to the
proxy contest, qualifications of director nominees, evaluation of what
each side is offering shareholders as well as the likelihood that the
proposed objectives and goals can be met, and stock ownership positions.
D. Contested Elections. Aberdeen Advisers vote on contested
elections on a case-by-case basis taking into consideration such factors
as the qualifications of all director nominees. Aberdeen Advisers also
consider the independence of board and key committee members and the
corporate governance practices of the company.
E. Executive compensation proposals. Aberdeen Advisers consider such
proposals on a case-by-case basis taking into consideration such factors
as executive pay and spending perquisites, particularly in conjunction
with sub-par performance and employee layoffs.
F. Shareholder Proposals. Aberdeen Advisers consider such proposals
on a case-by-case basis. Aberdeen Advisers support those proposals which
will improve the company's corporate governance or business profile at a
reasonable cost, but may oppose proposals which result in significant cost
being incurred with little or no benefit to the company or its
shareholders.
IV. Proxy Voting Procedures
This section applies to each Aberdeen Adviser except to the extent that
certain procedures are identified as applicable only to a specific
Aberdeen Adviser.
A. Obtain Proxy. Registered owners of record, e.g., trustees or
custodian banks, that receive proxy materials from the issuer or its
information agent, are instructed to sign physical proxy cards in blank
and forward directly to the relevant Aberdeen Adviser's proxy
administrator ("PA"). Proxies may also be delivered electronically by
custodians using proxy services such as ProxyEdge. Each proxy received is
matched to the securities to be voted.
B. Material Conflicts of Interest.
1. Identify the existence of any material conflicts of
interest relating to the securities to be voted or the issue at hand.
Portfolio managers and research analysts (Analysts") and senior management
of each Aberdeen Adviser have an affirmative duty to disclose to the
relevant proxy committees any personal conflicts such as officer or
director positions held by them, their spouses or close relatives in the
portfolio company or attempts by the portfolio company to exert influence
over such person with respect to their vote. Conflicts based on business
relationships or dealings of affiliates of any Aberdeen Adviser will only
be considered to the extent that the Aberdeen Adviser has actual knowledge
of such business relationships.
2. When a material conflict of interest between an Aberdeen
Adviser's interests and its clients' interests appears to exist, the
Aberdeen Adviser may choose among the following options to eliminate such
conflict: (1) vote in accordance with these Policies and Procedures if it
involves little or no discretion; (2) vote as recommended by a third party
service if the Aberdeen Adviser utilizes such a service; (3) "echo vote"
or "mirror vote" the proxies in the same proportion as the votes of other
proxy holders that are not Aberdeen clients; (4) if possible, erect
information barriers around the person or persons making voting decisions
sufficient to insulate the decision from the conflict; (5) if practical,
notify affected clients of the conflict of interest and seek a waiver of
the conflict; or (6) if agreed upon in writing with the client, forward
the proxies to affected clients allowing them to vote their own proxies.
C. Analysts. The PA for each Aberdeen Adviser will ensure that each
proxy statement is directed to the appropriate Analyst. If a third party
recommendation service has been retained, the relevant PA will forward the
proxy statement to the Analyst with the recommendation highlighted. The
Analyst will determine whether to vote as recommended by the service
provider or to recommend an alternative and shall advise the PA. The
Analyst may consult with the PA as necessary. If the Analyst recommends
voting against the third party recommendation, he or she is responsible
for documenting the reasons for such recommendation and that no conflict
of interest influenced such recommendation. If no third party
recommendation service is utilized or if no recommendation is provided,
the Analyst is responsible for documenting the rationale for his or her
vote recommendation.
D. Vote. The following describes the breakdown of responsibilities
between the PA and the Proxy Committee ("PC") of each Aberdeen Adviser in
voting portfolio securities and the extent to which the Aberdeen Advisers
rely on third party service providers.
1. Aberdeen FL
The PA for Aberdeen FL ("PA-FL"), who resides in Ft. Lauderdale, and the
PA for Aberdeen UK ("PA-UK"), which is part of the Trade Processing
Department resident in Aberdeen, Scotland, are responsible for ensuring
that votes for Aberdeen FL clients are cast and cast in accordance with
these Policies and Procedures. The PA-FL and the PA-UK are identified more
specifically on Appendix A1. The PA-FL is primarily responsible for
administering proxy votes for the Phoenix funds which are sub-advised by
Aberdeen FL.
Responsibility for considering the substantive issues relating to any vote
and for deciding how shares will be voted resides with the relevant
Analyst whether located in Aberdeen FL, Aberdeen UK or Aberdeen Singapore.
Under Aberdeen-FL's MOU with Aberdeen Singapore, the relevant Analyst for
Far East equity securities will generally reside in Aberdeen Singapore.
In the event that a material conflict of interest is identified by any
Analyst, whether in Aberdeen FL, Aberdeen UK or Aberdeen Singapore,
decisions on how to vote will be referred to the Aberdeen FL proxy
committee ("PC-FL/UK"). Under Aberdeen FL's MOU with Aberdeen UK, the
PC-FL/UK is headquartered in Glasgow, Scotland, and includes the Chief
Investment Officer or Deputy Chief Investment Officer, the head of the
Socially Responsible Investing ("SRI") Team and a member of the Compliance
team, who are more specifically identified on Appendix A1. The PC-FL/UK
meets as needed to consider material conflicts of interest or any other
items raising unique issues. If the PC-FL/UK determines that there is no
material conflict of interest, the vote recommendation will be forwarded
to the appropriate proxy administrator, either the PA-FL or PA-UK. If a
material conflict of interest is identified, the PC-FL/UK will follow the
conflict of interest procedures set forth in Section IV.B.2., above.
Aberdeen FL has engaged ProxyEdge, a third party service provider, to cast
votes electronically for certain clients and to maintain records of such
votes electronically.(9) Votes for some of the wrap accounts are handled
manually and hard copies of any manual votes cast are maintained in the
Florida office of Aberdeen FL. Pursuant to the MOU, Aberdeen UK votes
proxies for certain U.S. clients of Aberdeen FL. Aberdeen UK has engaged
Institutional Shareholder Services ("ISS"), a third party service
provider, to provide (1) notification of impending votes; (2) research
into non-routine votes, including shareholder resolutions; (3) voting
recommendations which may be viewed on-line; and (4) web-based voting. In
the absence of any material conflict of interest, Aberdeen FL may either
vote in accordance with the ISS recommendation or decline to follow the
ISS recommendation based on its own view of the agenda item provided that
decisions to vote contrary to the ISS recommendation are documented as set
forth in Section IV.C., above. For clients on the ISS system, votes are
automatically entered in accordance with ISS recommendations unless the
PA-UK expressly changes the vote prior to the voting deadline with
appropriate analyst documentation. In the event of a material conflict of
interest, Aberdeen FL will follow the procedures outlined in Section
IV.B.2, above.
2. Aberdeen Jersey, Aberdeen AU and Aberdeen Singapore
Aberdeen Jersey and Aberdeen AU are responsible for voting proxies for the
Funds. The PA for Aberdeen Jersey and Aberdeen AU ("PA-Jersey") is the
Trade Processing Department in Jersey, Channel Islands, members of which
are more specifically identified on Appendix A2. The PA-Jersey is
responsible for ensuring that votes are cast and cast in accordance with
these Policies and Procedures. The PA-Jersey uses ProxyEdge to
electronically cast votes for the Funds and to maintain electronic records
of the votes cast.
Responsibility for considering the substantive issues relating to any Fund
vote and for deciding how the shares will be voted resides with relevant
equity and/or fixed income Analyst. Pursuant to the MOU among Aberdeen
Jersey, Aberdeen AU and Aberdeen UK, the relevant Analyst may be a member
of the Fund portfolio management team in London, England. In the event
that a material conflict of interest is identified, decisions on how to
vote will be referred to the proxy committee ("PC-AU") located in Aberdeen
AU. The PC-AU includes the Heads of Equity and Fixed Income Portfolio
----------
(9) The Phoenix Funds, sub-advised by Aberdeen FL, require electronic voting
through ProxyEdge. Custodians for certain other clients also provide the
PA-FL with access to ProxyEdge.
Management and the Compliance Officer, who are more specifically
identified on Appendix A2. The PC-AU meets as needed to consider a
material conflict of interest or any other items raising unique issues. If
the PC-AU determines there is no material conflict of interest, the vote
recommendation will be forwarded to the PA-Jersey to be cast. If a
material conflict of interest is identified, the PC-AU will follow the
conflict of interest procedures set forth in Section IV.B.2., above, and
in the Aberdeen Funds Proxy Voting Policy and Procedures.
Aberdeen Singapore currently provides advice to Aberdeen Jersey and
Aberdeen AU only with respect to fixed income securities. In the event
that Aberdeen Singapore later provides advice to either Aberdeen Jersey
and Aberdeen AU with respect to equity securities, Aberdeen Singapore may
designate its own PA and PC. At present, a member of the PC-AU already
serves as an Aberdeen Singapore Analyst and this member will serve on the
Aberdeen Singapore PC with respect to proxy voting advice rendered to
Aberdeen Jersey and Aberdeen AU to the extent such a committee may be
necessary.
E. Review. Each PA is responsible for ensuring that proxy materials
are received in a timely manner and reconciled against holdings on the
record date of client accounts over which the Aberdeen Adviser has voting
authority to ensure that all shares held on the record date, and for which
a voting obligation exists, are voted.
V. Documentation, Recordkeeping and Reporting Requirements
A. Documentation. The Aberdeen PAs are responsible for:
1. Implementing and updating these Policies and Procedures;
2. Overseeing the proxy voting process;
3. Consulting with portfolio managers/analysts for the
relevant portfolio security; and
4. Maintaining manual proxy voting records, if any, and
overseeing and reviewing voting execution and recordkeeping by third party
providers such as ISS and ProxyEdge.
B. RecordKeeping.
1. Each Aberdeen Adviser maintains or procures the maintenance
of records of all proxies it has voted. As permitted by Rule 204-2(c),
electronic proxy statements and the record of each vote cast by each
client account of Aberdeen FL will be maintained by either ISS and Proxy
Edge, depending on the client account. Similarly, electronic proxy
statements and the record of each vote cast by each U.S. client account of
Aberdeen Jersey will be maintained by Proxy Edge.(10) Aberdeen FL shall
obtain and maintain undertakings from both ISS and Proxy Edge to provide
it with copies of proxy voting records and other documents relating to its
clients' votes promptly upon request. Aberdeen Jersey shall obtain and
maintain an undertaking from Proxy Edge to provide it with copies of proxy
voting records and other documents relating to votes for its U.S. clients
promptly upon request. Aberdeen Advisers, ISS and Proxy Edge may rely on
the SEC's EDGAR system to keep records of certain proxy statements if the
proxy statements are maintained by issuers on that system (e.g., large
U.S.-based issuers).
----------
(10) A Fund's proxy voting record must be filed with the SEC on Form N-PX. Form
N-PX must be completed and signed in the manner required, containing a
fund's proxy voting record for the most recent twelve-month period ended
June 30th (beginning August 31, 2004). If an Aberdeen Adviser delegates
this reporting responsibility to a third party service provider such as
ISS or Proxy Edge, it will ensure that the third party service provider
files Form N-PX accordingly.
2. As required by Rule 204-2(c), such records will also
include: (a) a copy of the Policies and Procedures; (b) a copy of any
document created by the Aberdeen Adviser that was material to making a
decision on how to vote proxies on behalf of a client or that memorializes
the basis for that decision; and (c) each written client request for proxy
voting records and the Aberdeen Adviser's written response to any (written
or oral) client request for such records.
3. Duration. Proxy voting books and records will be maintained
in an easily accessible place for a period of five years, the first two in
an appropriate office of the Aberdeen Adviser.
C. Reporting. Aberdeen FL will initially inform clients of these
Policies and Procedures and how a client may learn of the voting record
for client's securities through disclosure of its full policies and
procedures in Part II of its Form ADV. Aberdeen Jersey, Aberdeen AU and
Aberdeen Singapore will initially inform clients of these Policies and
Procedures by summary disclosure in Part II of their respective Forms ADV.
Upon receipt of a client's request for more information, Aberdeen FL,
Aberdeen Jersey, Aberdeen AU and Aberdeen Singapore will provide to the
client a copy of these Policies and Procedures and/or, in accordance with
the client's stated requirements, how the client's proxies were voted
during the period requested subsequent to the adoption of these Policies
and Procedures. Such periodic reports, other than those required for the
Funds, will not be made available to third parties absent the express
written request of the client. However, to the extent that any Aberdeen
Adviser may serve as a subadviser to another adviser to a Client, such
Aberdeen Adviser will be deemed to be authorized to provide proxy voting
records on such Client accounts to such other adviser.
D. Review of Policies and Procedures. These Policies and Procedures
will be subject to review on a periodic basis as deemed appropriate by the
Aberdeen Advisers.
Effective Date: July 1, 2003
ANNEXURE A1
PA-FL
Susan Connerney
PA-UK
Members of Trade Processing Department in Aberdeen, Scotland
--------------------------------------------------------------------------------
Names: Titles:
--------------------------------------------------------------------------------
Barry McAllister Investment Administration Supervisor
--------------------------------------------------------------------------------
David Walker Investment Administrator
--------------------------------------------------------------------------------
PC-FL/UK
Chief Investment Officer/Deputy CIO/Head of SRI/Compliance Officer***
--------------------------------------------------------------------------------
Names: Titles:
--------------------------------------------------------------------------------
Katherine Garrett-Cox Chief Investment Officer
--------------------------------------------------------------------------------
Andrew Preston Head of Socially Responsible Investing (SRI)
--------------------------------------------------------------------------------
Janet Murdoch Compliance Officer
--------------------------------------------------------------------------------
***From time to time one or more members of the committee may be
represented by an authorized representative of their respective
Department.
ANNEXURE A2
PA-Jersey
Members of Trade Processing Department in Channel Islands, Jersey
--------------------------------------------------------------------------------
Names: Titles:
--------------------------------------------------------------------------------
Linda Baker
--------------------------------------------------------------------------------
Heather Richard
--------------------------------------------------------------------------------
Theresa Allo
--------------------------------------------------------------------------------
PC-AU
Portfolio Managers/Research Analysts in Sydney, Australia
--------------------------------------------------------------------------------
Names: Titles:
--------------------------------------------------------------------------------
Steve Robinson Equities Fund Manager
--------------------------------------------------------------------------------
Munib Madni Equities Fund Manager
--------------------------------------------------------------------------------
James Blair Fixed Income Fund Manager
--------------------------------------------------------------------------------
Alison Briggs Fixed Income Fund Manager
--------------------------------------------------------------------------------
Chris Beard Compliance Officer
--------------------------------------------------------------------------------
Item 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
REGISTRANT PURCHASES OF EQUITY SECURITIES
---------------------------------------------------------------------------------------------------------------
Period (a) (b) (c) (d)
Total Number Average Price Total Number of Shares Maximum Number of Shares
of Shares Paid per Share Purchased as Part of That May Yet Be Purchased
Purchased Publicly Announced Plans Under the Plans or
or Programs (1) Programs (1)
---------------------------------------------------------------------------------------------------------------
November 1, through, 0 0 0 926,866
November 30, 2003
---------------------------------------------------------------------------------------------------------------
December 1 through 0 0 0 927,098
December 31, 2003
---------------------------------------------------------------------------------------------------------------
January 1
through 0 0 0 927,303
January 31, 2004
---------------------------------------------------------------------------------------------------------------
February 1
through 0 0 0 927,508
February 29, 2004
---------------------------------------------------------------------------------------------------------------
March 1
through 0 0 0 927,303
March 31, 2004
---------------------------------------------------------------------------------------------------------------
April 1
through 0 0 0 927,716
April 30, 2004
---------------------------------------------------------------------------------------------------------------
May 1 0 0 0 927,944
through
May 31, 2004
---------------------------------------------------------------------------------------------------------------
June 1
through 0 0 0 927,944
June 30, 2004
---------------------------------------------------------------------------------------------------------------
July 1
through 0 0 0 927,944
July 31, 2004
---------------------------------------------------------------------------------------------------------------
August 1
through 0 0 0 927,944
August 31, 2004
---------------------------------------------------------------------------------------------------------------
September 1
through 0 0 0 927,944
September 30, 2004
---------------------------------------------------------------------------------------------------------------
October 1
through 0 0 0 927,944
October 31, 2004
---------------------------------------------------------------------------------------------------------------
Total 0 0 0 --
---------------------------------------------------------------------------------------------------------------
(1) The Fund's stock repurchase program was announced on March 19, 2001
and allows the Fund to repurchase up to 10% of its outstanding common
stock in the open market during any 12 month period if and when the
discount to net asset value is at least 10%.
Item 10 - Submission of Matters to a Vote of Security Holders
On September 13, 2004, the Fund's Board of Directors adopted policies by
which shareholders may recommend nominees to the Fund's Board. These
policies are set forth in their entirety below:
Aberdeen Global Income Fund, Inc.
Policies for Consideration of Board Member Candidates submitted by Fund
Stockholders
(Adopted as of September 13, 2004)
Pursuant to the Charter of the Nominating and Corporate Governance
Committee (the "Committee") of Aberdeen Global Income Fund, Inc. (the
"Fund"), the Committee is charged with evaluating the qualifications of
candidates to serve on the Fund's Board of Directors ("Board") and with
making nominations for members of the Board. These Policies shall apply to
the Committee's consideration of Board member candidates submitted by Fund
stockholders.
Nominations from Stockholders
While the Committee is solely responsible for evaluating and nominating
candidates to serve on the Board, the Committee may consider nominations
from stockholders of the Fund. Holders of the Fund's common stock may
submit for the Committee's consideration recommendations regarding
potential candidates for service as directors to represent the holders of
such common stock, and holders of the Fund's preferred stock may submit
for the Committee's consideration recommendations regarding potential
candidates for service as preferred directors. Each eligible stockholder
or stockholder group may submit no more than one candidate each calendar
year.
In order for the Committee to consider stockholder submissions, the
following requirements must be satisfied regarding the candidate:
(a) The candidate must satisfy all qualifications provided herein, in
the Fund's organizational documents and in the Fund's Nominating and
Corporate Governance Committee Charter.
(b) If the nominating stockholder or any member of the nominating
stockholder group is a natural person, the candidate may not be the
nominating stockholder, a member of the nominating stockholder
group, or a member of the immediate family of the nominating
stockholder or any member of the nominating stockholder group.(11)
(c) If the nominating stockholder or any member of the nominating
stockholder group is an entity, neither the candidate nor any member
of the candidate's immediate family may have been employed during
the calendar year of the submission nor the immediately preceding
calendar year, by the nominating stockholder or any member of a
nominating stockholder group.
(d) Neither the candidate nor any immediate family member of the
candidate is permitted to have accepted directly or indirectly,
during the calendar year of the submission or during the immediately
preceding calendar year, any consulting, advisory, or other
compensatory fee from the nominating stockholder or any member of a
nominating stockholder group or any affiliate of any such
stockholder or any such member.
----------
(11) The terms "immediate family member" and "control" shall be interpreted in
accordance with the federal securities laws.
(e) The candidate may not be an executive officer or director (or person
performing similar functions) of the nominating stockholder or any
member of the nominating stockholder group, or of an affiliate of
such stockholder or any such member.
(f) The candidate may not control the nominating stockholder or any
member of the nominating stockholder group (or, in the case of a
stockholder or member that is a fund, an interested person of such
stockholder or member as defined by Section 2(a)(19) of the
Investment Company Act of 1940, as amended).
(g) A stockholder or stockholder group may not submit for consideration
a candidate who has previously been considered by the Committee.
In order for the Committee to consider stockholder submissions, the
following requirements must be satisfied regarding the stockholder or
stockholder group submitting the candidate:
(a) The Committee only will consider stockholder submissions that are
received during the period from August 1 through September 30 of the
year prior to the meeting of stockholders at which the director is
to be elected ("Stockholders' Meeting").
(b) Any stockholder or stockholder group submitting a proposed candidate
must beneficially own, either individually or in the aggregate, more
than 5% of the Fund's shares of common stock or preferred stock, as
the case may be. The shares used for purposes of calculating this
ownership must have been held continuously for at least two years as
of the date of the submission of the candidate. In addition, such
securities must continue to be held through the date of the
Stockholders' Meeting. The nominating stockholder or stockholder
group must also bear the economic risk of the investment.
(c) The nominating stockholder or each member of the nominating
stockholder group must meet the requirements set out in Rule
13d-1(b) or (c) of the Securities Exchange Act of 1934 to file on
Schedule 13G. The nominating stockholder or the nominating
stockholder group must have reported its beneficial ownership on
Schedule 13G or Schedule 13D, before or on the date of the
stockholder submission.
A stockholder or stockholder group submitting a proposed candidate to the
Committee must substantiate compliance with the above requirements at the
time of such submission. Any submission must be directed to the attention
of the Fund's Secretary, who will forward such submission to the
Committee. This submission must include:
(a) Contact information for the nominating stockholder or stockholder
group;
(b) A copy of the Schedule 13G or Schedule 13D filed with the Securities
and Exchange Commission by the nominating stockholder or the
nominating stockholder group;
(c) A certification from the nominating stockholder or stockholder group
providing that the shares have been held continuously for at least
two years as of the date of the submission of the candidate, and
will continue to be held through the date of the Stockholders'
Meeting;
(d) The candidate's contact information and the number of applicable
Fund shares owned by the candidate;
(e) All information regarding the candidate that would be required to be
disclosed in solicitations of proxies for elections of directors
required by Regulation 14A under the Securities Exchange Act of
1934, as amended;
(f) A notarized letter executed by the candidate, stating his or her
intention to serve as a candidate and consent to be named in the
Fund's proxy statement and form of proxy, if so designated by the
Fund's Board, and to serve as a director if so elected;
(g) A representation that, to the knowledge of the nominating
stockholder or stockholder group, the nominee's candidacy or, if
elected, board membership, would not violate controlling state law
or federal law or rules of a national securities exchange or
national securities association applicable to the Fund; and
(h) A statement as to whether or not, during the past ten years, the
nominating stockholder or any member of the nominating stockholder
group, has been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) and, if so, the dates,
the nature of the conviction, the name or other disposition of the
case; and whether the individual has been involved in any other
legal proceedings during the last five years, as specified in Item
401(f) of Regulation S-K. When the nominating stockholder or any
member of the nominating stockholder group is a general or limited
partnership, syndicate or other group, the foregoing information
must be provided with respect to (i) each partner of the general
partnership; (ii) each partner who is, or functions as, a general
partner of the limited partnership; (iii) each member of the
syndicate or group; and (iv) each person controlling the partner or
member. If the nominating stockholder or any member of the
nominating stockholder group is a corporation or if a person
referred to in (i)-(iv) of the preceding sentence is a corporation,
the foregoing information must be provided with respect to (a) each
executive officer and director of the corporation; (b) each person
controlling the corporation; and (c) each executive officer and
director of any corporation or other person ultimately in control of
the corporation.
It shall be in the Committee's sole discretion whether to seek corrections
of a deficient submission or to exclude a candidate from consideration.
Item 11 - Controls and Procedures
(a) It is the conclusion of the Registrant's principal executive officer
and principal financial officer that the effectiveness of the
Registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within 90
days of the date of this filing) provide reasonable assurance that
the information required to be disclosed by the Registrant has been
recorded, processed, summarized and reported within the time period
specified in the Commission's rules and forms and that the
information required to be disclosed by the Registrant has been
accumulated and communicated to the Registrant's principal executive
officer and principal financial officer in order to allow timely
decisions regarding required disclosure.
(b) There have been no changes in the Registrant's internal control over
financial reporting that occurred during the second fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the Registrant's
internal control over financial reporting.
Item 12 - Exhibits
(a)(1) Code of Ethics pursuant to Item 2(f) of this Form N-CSR
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940, as amended, are filed as Exhibit 99.CERT
(b) Certifications pursuant to Rule 30a-2(b) under the Investment
Company Act of 1940, as amended, are filed as Exhibit 99.906CERT
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 Global Income Fund, Inc.
By: /s/ Martin Gilbert
---------------------------------
Martin Gilbert,
President of
Aberdeen Global Income Fund, Inc.
Date: December 24, 2004
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/ Martin Gilbert
---------------------------------
Martin Gilbert,
President of
Aberdeen Global Income Fund, Inc.
Date: December 24, 2004
By: /s/ Christian Pittard
---------------------------------
Christian Pittard,
Treasurer of
Aberdeen Global Income Fund, Inc.
Date: December 24, 2004