- Le Pen says days of new French govt numbered
- Global stocks mostly rise after US tech rally
- Villa boss Emery set for 'very difficult' clash with Newcastle
- Investors swoop in to save German flying taxi startup
- How Finnish youth learn to spot disinformation
- South Korean opposition postpones decision to impeach acting president
- 12 killed in blast at Turkey explosives plant
- Panama leaders past and present reject Trump's threat of Canal takeover
- Hong Kong police issue fresh bounties for activists overseas
- Saving the mysterious African manatee at Cameroon hotspot
- India consider second spinner for Boxing Day Test
- London wall illuminates Covid's enduring pain at Christmas
- Poyet appointed manager at South Korea's Jeonbuk
- South Korea's opposition vows to impeach acting president
- The tsunami detection buoys safeguarding lives in Thailand
- Teen Konstas to open for Australia in Boxing Day India Test
- Asian stocks mostly up after US tech rally
- US panel could not reach consensus on US-Japan steel deal: Nippon
- The real-life violence that inspired South Korea's 'Squid Game'
- Blogs to Bluesky: social media shifts responses after 2004 tsunami
- Tennis power couple de Minaur and Boulter get engaged
- Supermaxi yachts eye record in gruelling Sydney-Hobart race
- Hawaii's Kilauea volcano erupts, spewing columns of lava
- EVSX Completes Installation of Multi Chemistry Line
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - December 24
- El Salvador Congress votes to end ban on metal mining
- Five things to know about Panama Canal, in Trump's sights
- NBA fines Minnesota guard Edwards $75,000 for outburst
- Haitians massacred for practicing voodoo were abducted, hacked to death: UN
- Inter beat Como to keep in touch with leaders Atalanta
- Mixed day for global stocks as market hopes for 'Santa Claus rally'
- Man Utd boss Amorim questions 'choices' of Rashford's entourage
- Trump's TikTok love raises stakes in battle over app's fate
- Is he serious? Trump stirs unease with Panama, Greenland ploys
- England captain Stokes to miss three months with torn hamstring
- Support grows for Blake Lively over smear campaign claim
- Canada records 50,000 opioid overdose deaths since 2016
- Jordanian, Qatari envoys hold talks with Syria's new leader
- France's second woman premier makes surprise frontline return
- France's Macron announces fourth government of the year
- Netanyahu tells Israel parliament 'some progress' on Gaza hostage deal
- Guatemalan authorities recover minors taken by sect members
- Germany's far-right AfD holds march after Christmas market attack
- European, US markets wobble awaiting Santa rally
- Serie A basement club Monza fire coach Nesta
- Mozambique top court confirms ruling party disputed win
- Biden commutes almost all federal death sentences
- Syrian medics say were coerced into false chemical attack testimony
- NASA solar probe to make its closest ever pass of Sun
- France's new government to be announced Monday evening: Elysee
abrdn Income Credit Strategies Fund (ACP) Announces Change to Monthly Distribution Expected to be Maintained for at Least the Next 12 Months
abrdn Income Credit Strategies Fund (NYSE:ACP) (the "Fund"), a closed-end fund, announced today that it has reduced its monthly distribution from US 10 cents per share to US 7.75 cents per share, commencing with the distribution payable on January 10, 2025 to shareholders of record as of December 30, 2024 (ex-dividend date December 30, 2024).
This represents a change in the annualized distribution rate from 18% to 14% based on NAV as of December 9, 2024. The Fund intends to maintain this distribution level for at least the next 12 months unless there is significant and unforeseen changes in market conditions.
The Fund's distribution 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, which is a non-taxable return of capital. The Fund's monthly distribution has remained unchanged since September 2020.
The Investment Adviser has advised the Fund's Board of Trustees (the "Board") that it believes that the reduced monthly distribution is more consistent with sustainable earnings of the Fund. The current reduction in distribution takes into account many factors, including, but not limited to, current and expected earnings and abrdn Investments Limited, the Investment Adviser, economic and market outlook.
In approving the decrease to the distribution rate, the Board considered, among other things, the strong long-term past performance of the investment advisor as well as their outlook on the market going forward. The investment advisor is optimistic on both the near term and long-term prospects for returns within the High Yield market, with the combination of an attractive level of income and the advisor's historic ability to generate capital appreciation in a range of market outcomes as the drivers of their outlook. However, as credit spreads have tightened over recent years, the Board believes it to be prudent to lower the distribution rate to reflect a decreased total return potential in excess of income over the near term.
Both the Board and the Investment Advisor remain committed to offering a product with a premium level of income, and that will not change. The pro forma level of distribution is expected to continue to stand out from the competitive set within the peer group while allowing the advisor the flexibility to invest in assets that put the best interests of the investor base as the top priority.
Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S. Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code of 1986, as amended, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the NAV of the Fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.
###
For More Information Contact:
abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
[email protected]
SOURCE: abrdn Income Credit Strategies Fund
L.Durand--AMWN