An anonymous director reports
ABERDEEN ASIA-PACIFIC INCOME INVESTMENT COMPANY LIMITED ANNOUNCES PERFORMANCE DATA AND PORTFOLIO COMPOSITION
Aberdeen Asia-Pacific Income Investment Company Ltd. has released performance data and portfolio composition details as of March 31, 2019.
The company's total returns for various periods through March 31, 2019, are provided in the attached table (all figures are based on distributions reinvested at the dividend reinvestment price and are stated net of fees).
Period NAV total return (%) Market price total return (%)
Cumulative Annualized Cumulative Annualized
Since inception (June, 1986) 858.0 7.1 664.6 6.4
10 years 82.1 6.2 97.8 7.1
Five years 26.1 4.8 10.9 2.1
Three years 13.8 4.4 7.1 2.3
One year -0.3 -4.2
The company's returns, which are denominated in Canadian dollars, are affected by the performance of the Canadian dollar against the various currencies listed herein.
As of March 31, 2019, the portfolio was invested as shown in the attached table.
Currency exposure (%) Geographic exposure (%)
Australia 21.2 18.3
Supranational - 2.7
United States 37.7 2.8
Canada 0.2 0.2
United Kingdom - 1.0
Germany - 0.8
Netherlands - 0.2
Spain - 0.1
Norway - 0.2
Turkey - 0.1
Brazil 1.4 6.1
Mexico 2.7 2.7
United Arab Emirates - 0.9
Macao - 0.3
South Korea - 1.7
Singapore - 1.0
Thailand - 2.4
Papua New Guinea - 0.1
Philippines 13.8 14.9
Pakistan - 0.1
Mongolia - 0.3
Malaysia - 1.2
India 9.9 10.9
China - 9.9
Hong Kong - 1.3
Indonesia 11.6 18.1
Qatar - 0.2
Sri Lanka 1.5 1.5
As of March 31, 2019, the top 10 holdings of the portfolio based on total assets were as shown in the attached table.
Holding Coupon Maturity (%)
Philippine government bond 6.25% March 22, 2028 5.9
Brazil Notas do Tesouro Nacional (Series F) 10.00% Jan. 1, 2025 5.5
Indonesia government bond, Standard Chartered credit-linked note 10.50% Aug. 19, 2030 4.0
Indonesia government bond, JP Morgan Chase credit-linked note 10.50% Aug. 19, 2030 4.0
Philippine government bond 6.88% Jan. 10, 2029 3.3
Australian government bond 3.75% April 21, 2037 3.2
Philippine government bond 6.25% March 12, 2024 2.5
Indonesia government bond 10.50% Aug. 15, 2030 2.5
Philippine government bond 5.75% April 12, 2025 2.4
Australian government bond 3.25% June 21, 2039 2.1
Total 35.4
As of March 31, 2019, the holdings of the portfolio represented approximately: 57.3 per cent in sovereign and state government securities; 39.9 per cent in corporates; and 2.8 per cent supranationals.
As of March 31, 2019, the company's net assets, including $94.7-million in bank borrowing, amounted to $327.7-million. The net asset value per ordinary share was $4.57.
As of March 31, 2019, 25.5 per cent of the portfolio was invested in securities where either the issue or the issuer was rated "A" or better by multiple rating agencies.
The credit quality and maturity breakdown of the portfolio were as shown in the attached credit quality and maturity tables.
AAA/Aaa AA/Aa A BBB/Baa BB/Ba B CCC Not rated
18.7 2.7 4.1 48.8 10.4 4.8 0.1 10.4
Maturity
Fewer than three years Three to five years Five to 10 years More than 10 years
26.8 13.8 33.9 25.5
As of March 31, 2019, the average maturity of the portfolio was 8.8 years.
The company has in place leverage in the form of a loan facility. The outstanding balance on the loan as of March 31, 2019, is $70.9-million (U.S.), which represents no change from the previous month.
The leverage is used with the intent of enhancing returns by borrowing at interest rates that are lower than the relatively higher yields of the Asia-Pacific fixed-income securities in which the company invests. The company has entered into interest rate swap agreements in order to fix the interest payable on a portion of the credit facility. Details regarding the revolving credit loan facility and the interest rate swap agreements are contained in the company's annual and semi-annual reports to shareholders.
We seek Safe Harbor.
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