Edgar Filing: ABERDEEN ASIA-PACIFIC INCOME FUND INC

Aberdeen Asia-Pacific Income Fund, Inc.

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:		811-04611

Exact name of registrant as specified in charter:		Aberdeen Asia-Pacific Income Fund, Inc.

Address of principal executive offices:		1735 Market Street, 32^nd Floor
		Philadelphia, PA 19103

Name and address of agent for service:		Ms. Andrea Melia
		Aberdeen Asset Management Inc.
		1735 Market Street 32^nd Floor
		Philadelphia, PA 19103

Registrant’s telephone number, including area code:		800-522-5465

Date of fiscal year end:		October 31

Date of reporting period:		October 31, 2015

Item 1 – Reports to Stockholders – The Report to Shareholders is attached herewith.

LOGO

Managed Distribution Policy (unaudited)

The Board of Directors of the Fund has authorized a managed distribution policy (“MDP”) of paying monthly distributions at an annual rate set once a year. It is the Board’s intention that a monthly distribution of $0.035 per share be maintained for 12 months beginning with the June 30, 2015 distribution payment. With each distribution, the Fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and estimated composition of the distribution and other information required by the Fund’s MDP exemptive order. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

Distribution Disclosure Classification (unaudited)

The Fund’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 rules, the amount applicable to the Fund and character 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. Under Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund is required to indicate the sources of certain distributions to shareholders. The estimated distribution composition may vary from month to month because it may be materially impacted by future income, expenses and realized gains and losses on securities and fluctuations in the value of the currencies in which the Fund’s assets are denominated.

The distributions for the fiscal year ended October 31, 2015 consisted of 95% net investment income and 5% return of capital.

In January 2016, 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 2015 calendar year.

Dividend Reinvestment and Direct Stock Purchase Plan (unaudited)

Computershare Trust Company, N.A., (“Computershare”) the Fund’s transfer agent, sponsors and administers a Dividend Reinvestment and Direct Stock Purchase Plan (the “Plan”), which is available to shareholders.

The Plan allows registered stockholders and first time investors to buy and sell shares and automatically reinvest dividends and capital gains through the transfer agent. This is a cost-effective way to invest in the Fund.

Please note that for both purchases and reinvestment purposes, shares will be purchased in the open market at the current share price and cannot be issued directly by the Fund.

For more information about the Plan and a brochure that includes the terms and conditions of the Plan, please call Computershare at 1-800-647-0584 or visit www.computershare.com/buyaberdeen.

Letter to Shareholders (unaudited)

Dear Shareholder,

We present this Annual Report which covers the activities of Aberdeen Asia-Pacific Income Fund, Inc. (the “Fund”) for the fiscal year ended October 31, 2015. The Fund’s principal investment objective is to seek current income. The Fund may also achieve incidental capital appreciation.

Total Return Performance

The Fund’s total return, based on net asset value (“NAV”), net of fees, was -8.2% for the fiscal year ended October 31, 2015 and 8.1% per annum since inception, assuming the reinvestment of dividends and distributions. The Fund’s total return for the fiscal year ended October 31, 2015 and per annum since inception is based on the reported NAV on each financial reporting period end.

Share Price and NAV

For the fiscal year ended October 31, 2015, based on market price, the Fund’s total return was -12.4%, assuming reinvestment of dividends and distributions. The Fund’s share price decreased by 19.2% over the fiscal year, from $5.88 on October 31, 2014 to $4.75 on October 31, 2015. The Fund’s share price on October 31, 2015 represented a discount of 14.7% to the NAV per share of $5.57 on that date, compared with a discount of 10.6% to the NAV per share of $6.58 on October 31, 2014.

Portfolio Allocation

As of October 31, 2015, the Fund held 34.6% of its total investments in Australian debt securities, 57.7% in Asian debt securities, 3.8% in European debt securities, 3.8% in U.S. debt securities and 0.1% in Canadian debt securities.

Of the Fund’s total investments, 42.2% were held in U.S. Dollar-denominated bonds issued by foreign issuers. The rest of the Fund’s currency exposure was 37.4% in the Australian Dollar and 20.4% in various Asian currencies.

Credit Quality

As of October 31, 2015, 58.5% of the Fund’s total investments were invested in securities where either the issue or the issuer was rated A or better by Standard & Poor’s¹ or Moody’s Investors Services, Inc.²

Portfolio Management

The Fund is managed by Aberdeen’s Asia-Pacific fixed income team. The Asia-Pacific fixed income team works in a truly collaborative fashion; all team members have both portfolio management and research responsibilities. The team is jointly and primarily responsible for the day-to-day management of the Fund.

Managed Distribution Policy

Distributions to common shareholders for the twelve months ended October 31, 2015 totaled $0.42 per share. Based on the share price of $4.75 on October 31, 2015, the distribution rate over the twelve-month period ended October 31, 2015 was 8.8%. 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 November 10, 2015 and December 9, 2015 the Fund announced that it will pay on November 30, 2015 and January 12, 2016 a distribution of US $0.035 per share to all shareholders of record as of November 23, 2015 and December 31, 2015, respectively.

The Fund’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, which is a non-taxable return of capital. It is the Board’s intention that a monthly distribution of $0.035 per share be maintained for twelve months, beginning with the June 30, 2015 distribution payment. This policy is subject to an annual review as well as regular review at the Board’s quarterly meetings, unless market conditions require an earlier evaluation. The next annual review is scheduled to take place in June 2016.

Standard & Poor’s credit ratings are expressed as letter grades that range from ‘AAA’ to ‘D’ to communicate the agency’s opinion of relative level of credit risk. Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The investment grade category is a rating from ‘AAA’ to ‘BBB-’.

Moody’s is an independent, unaffiliated research company that rates fixed income securities. Moody’s assigns ratings on the basis of risk and the borrower’s ability to make interest payments. Typically securities are assigned a rating from ‘Aaa’ to ‘C’, with ‘Aaa’ being the highest quality and ‘C’ the lowest quality.

Aberdeen Asia-Pacific Income Fund, Inc.

Letter to Shareholders (unaudited) (continued)

Fund’s Leverage

The table below summarizes certain key terms of the Fund’s current leverage:


	Amount ($ in millions)		Maturity
Revolving Credit Facility	$	125		April 9, 2017
7-year Series A Senior Secured Notes	$	100		June 12, 2020
10-year Series B Senior Secured Notes	$	100		June 12, 2023
5-year Term Loan A	$	100		June 12, 2018
3-year Term Loan B	$	100		June 12, 2016	*
10-year Series A Mandatory Redeemable Preferred Shares	$	50		June 27, 2023

Subsequent to the end of the reporting period, the maturity of Term Loan B was extended to December 14, 2019.

On August 13, 2015, the Fund paid down $25 million of the Revolving Credit Facility.

The Series A Mandatory Redeemable Preferred Shares, with a liquidation value of $50 million, are rated AA by Fitch Ratings³ and the combined $200 million 7 and 10 year Series A and B Senior Secured Notes are rated AAA by Fitch Ratings.

We believe the Fund has been able to lock in an attractive rate cost of borrowing and extend the maturity of the leverage facility while diversifying its borrowing structure during what we believe to be a favorable current interest rate environment. A more detailed description of the Fund’s leverage can be found in the Notes to Financial Statements.

Open Market Repurchase Program

The Fund’s policy is generally to buy back Fund shares on the open market when the Fund trades at certain discounts to NAV and management believes such repurchases may enhance shareholder value. During the fiscal year ended October 31, 2015 and fiscal year ended October 31, 2014, the Fund repurchased 4,991,465 and 6,107,325 shares, respectively.

Portfolio Holdings Disclosure

The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the Fund’s semi-annual and annual reports to shareholders. 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 Form N-Q filings 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, D.C.

Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund makes the information on Form N-Q available to shareholders on the Fund’s website or upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

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 most recent twelve months ended June 30 is available by August 30 of the relevant year: (i) upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465; and (ii) on the SEC’s website at http://www.sec.gov.

Unclaimed Share Accounts

Please be advised that abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed property, and Fund shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund’s transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial adviser or the Fund’s transfer agent will follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Fund’s transfer agent.

Investor Relations Information

As part of Aberdeen’s commitment to shareholders, I invite you to visit the Fund on the web at www.aberdeenfax.com. From this page, you can view monthly fact sheets, portfolio manager commentary, distribution and performance information, updated daily fact sheets courtesy of Morningstar^®, portfolio charting and other timely data.

Enroll in our email services and be among the first to receive the latest closed-end fund news, announcements of upcoming fund manager web casts, films and other information. In addition, you can receive electronic versions of important Fund documents including annual reports, semi-annual reports, prospectuses, and proxy statements. Sign-up today at www.aberdeen-assets.us/aam.nsf/usclosed/email.

Fitch Ratings is an international credit rating agency. Fitch ratings range from AAA (reliable and stable) to D (high risk).

Aberdeen Asia-Pacific Income Fund, Inc.

Letter to Shareholders (unaudited) (concluded)

Please take a look at Aberdeen’s award-winning Closed-End Fund Talk Channel, where a series of fund manager web casts and short films are posted. Visit Aberdeen’s Closed-End Fund Talk Channel at www.aberdeen-asset.us/aam.nsf/usclosed/aberdeentv.

Included within this report is a reply card with postage paid envelope. Please complete and mail the card if you would like to be added to our enhanced email service and receive future communications from Aberdeen.

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Visit us: http://www.aberdeen-asset.us/cef or www.aberdeenfax.com

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Watch us: www.aberdeen-asset.us/aam.nsf/usclosed/aberdeentv

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Email us: InvestorRelations@aberdeen-asset.com

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Call us: 1-800-522-5465 (toll free in the U.S.)

Yours sincerely,

/s/ Christian Pittard

Christian Pittard

President

All amounts are U.S. Dollars unless otherwise stated.

Aberdeen Asia-Pacific Income Fund, Inc.

Report of the Investment Manager (unaudited) (continued)

Market/economic review

Asian bond markets declined in U.S. dollar terms over the 12-month period ended October 31, 2015. Key laggards during the period included Singapore and Hong Kong government bonds, where expectations of a U.S. Federal Reserve (Fed) interest-rate hike weighed on short-term bonds. Asia regional currencies weakened as the U.S. dollar strengthened in anticipation of monetary policy normalization.

In the Asian credit markets, high-yield corporates led gains, outperforming their investment-grade peers over the reporting period. There was solid buying interest in China amid signs of a property market revival. This occurred despite concerns about borrowers’ foreign debt following the yuan devaluation, as well as news of liquidity problems at several state-owned enterprises (SOEs). In almost all cases, the Chinese government stepped in to help the SOEs avoid default. Conversely, Indonesia and Malaysian credits underperformed.

In the government bond markets, Australia’s yield curve shifted sharply lower over the reporting period. The central bank cut rates twice early in the period and subsequently acknowledged the need for monetary policy to remain accommodative. Second-quarter 2015 gross domestic product (GDP) growth was weaker than expected, although unemployment was largely stable, while business and consumer confidence improved towards the end of the reporting period. Malcolm Turnbull ousted Tony Abbott as leader of Australia’s Liberal Party and was sworn in as prime minister – the fifth leadership change in as many years. In New Zealand, the central bank loosened monetary policy as weak agricultural prices hurt economic growth.

Elsewhere, government bonds in India and China outperformed versus their peers as their central banks were among the most aggressive in cutting interest rates, while net oil-importer India also benefited from crude oil price weakness. The Indian rupee and Chinese yuan were among the strongest-performing regional currencies. Meanwhile, the Chinese government took a step towards internationalizing the yuan by allowing market forces to determine its value. In Thailand and Korea, monetary policy easing amid benign inflation also buoyed markets. Economic growth outlooks for the two countries were clouded by bombings in Bangkok and the Middle East Respiratory Syndrome (MERS) virus outbreak, respectively.

The Indonesian and Malaysian markets performed relatively well during the reporting period despite massive foreign investments in

government securities that made these markets susceptible to selling pressure in the face of U.S. dollar strength. Problematic domestic issues persisted as well: Indonesia faced external account¹ vulnerabilities, while Malaysia reeled from the impact of lower oil prices on government revenues and the scandal at state investment firm, 1Malaysia Development Berhad (1MDB). Philippine bonds also performed well over the period.

Fund performance review

The Fund posted a negative return (on both a net asset value and market price basis) but outperformed its blended benchmark² over the 12-month reporting period ended October 31, 2015. Fund performance was bolstered by the underweight position in Australia and New Zealand bonds, as well as an overweight allocation to U.S. dollar-denominated Asian credit; however, negative security selection in both these sectors tempered gains. Meanwhile, security selection in Asian local-currency bonds was positive.

Within the Australia and New Zealand segment of the Fund, interest-rate strategies detracted from performance, while the currency strategy had a marginally positive impact. Regarding Asian local-currency bonds, the overweight to India and significant underweight to the Malaysian ringgit were the most significant contributors to the Fund’s relative performance. Conversely, overweight positions in the Indian rupee and Sri Lankan rupee were the biggest detractors, while the underweight to Hong Kong also weighed on performance.

In U.S. dollar-denominated Asian credit, security selection in high-yield industrials and investment-grade financials added to relative return, as did the lack of exposure to investment-grade quasi-sovereigns. The significant exposure to high-yield financials also had a positive impact. However, the exposure to the oil and gas sector, which is not represented in the Fund’s blended benchmark, detracted from performance.

Regarding derivatives, the Fund’s use of U.S. Treasury futures to hedge the U.S. interest-rate risk and the use of swaps to hedge the leverage had a modestly negative impact on performance, primarily those positions gaining exposure to the Asian currencies. The use of currency forwards to hedge the Asian currency exposure enhanced Fund performance.

Outlook

In our view, the sooner the U.S. normalizes interest rates, the better, as global markets may find relief from a major source of uncertainty*. While

The portion of a country’s debt that was borrowed from foreign lenders, including commercial banks, governments or international financial institutions.

The Fund’s blended benchmark comprises 45% of the UBS Composite Index (or the “Bloomberg AusBond Composite Bond Index”), 35.75% of the J.P. Morgan Asia Credit Index, and 19.25% of the IBOXX Asia ex-Japan Government Bond Index.

The Fed subsequently raised the federal funds rate by 0.25% on December 16, noting that it sees the risks to the outlook for both economic activity and the labor market as balanced.

Aberdeen Asia-Pacific Income Fund, Inc.

Report of the Investment Manager (unaudited) (continued)

investors have already reduced a great deal of risk, we believe that they may remain cautious and that further risk reduction is possible. But a hike in U.S. interest rates may not necessarily be harmful to bonds, since a Fed tightening cycle likely will be gradual, in our opinion, and regional central banks can remain accommodative. Asian sovereign balance sheets are improving, which we believe puts them in a good position to cope with higher U.S. rates. We feel that it also is worth noting that valuations have improved substantially and in some cases, such as in Indonesia, have led to a recovery in fund flows. As for regional currencies, investors are largely prepared for short-term weakness in the face of U.S.-dollar strength. A number of central banks – such as those in Thailand and Korea – actually prefer weaker domestic currencies as this may help to revive moribund growth, in our view.

Nevertheless, we think that challenges persist in delivering concrete reforms, particularly in China, India and Indonesia. In the mainland, green shoots may be visible, notably in the property sector. Aided by government intervention, the yuan has also stabilized and a decision was recently made by the International Monetary Fund to include the currency in its reserve basket. However, given the ongoing economic restructuring and weak global backdrop, Chinese economic growth is still expected to be slow. In a small number of countries, political risks may potentially weigh on investor sentiment. As of the end of the reporting period, India’s governing Bharatiya Janata Party lost the Bihar state election, which we think may potentially curb investors’ risk appetite. In the Philippines, we believe that volatility could spike ahead of the presidential elections in May 2016 amid questions over economic growth momentum, given our opinion that none of the candidates thus far appear to possess current President Benigno Aquino’s focus on reform.

In Australia, we anticipate a prolonged period of stable but subpar growth amid excess capacity in the labor market. In our view, the structural slowdown in China is still a major headwind, exposing commodity prices to downward pressure, even as the mining giants ramp up record supply in a bid to shake out weaker players. This, in turn, has a negative impact on the terms of trade and diminishes the contribution to growth from net exports. Additionally, financial markets remain skittish, given uncertainty surrounding monetary policy in China and the U.S. In this environment, we believe that consumer prices and wage inflation may remain at the low end of the central bank’s target range, which would support its monetary policy easing bias in the medium term. We also see further rate cuts in New Zealand, given low inflation and the sharp deceleration in GDP growth. Although the outlook for dairy prices has improved, prices remain low in absolute terms and production is being reduced; therefore, agriculture may be a drag on economic growth.

In credit markets, we feel that spreads could tighten further amid firm demand supported by the loose monetary policy environment. We believe that companies may see declining earnings growth as they continue to experience slowing consumption, exacerbated by rising household debt. However, finances are generally more robust in Asia than elsewhere in the emerging markets. In China, we think that potential defaults are cause for concern. But we believe that the Chinese government remains supportive of state-owned enterprises deemed strategically important, despite the obvious moral hazards.

Loan Facilities and the Use of Leverage

The amounts borrowed under the Revolving Credit Facility, the Term Loan Facility, the Notes and the Series A MRPS (each as defined below) may be invested to seek to return higher rates than the rates pursuant to which interests or dividends are paid under such forms of leverage. However, the cost of leverage could exceed the income earned by the Fund on the proceeds of such leverage. To the extent that the Fund is unable to invest the proceeds from the use of leverage in assets which pay interest at a rate which exceeds the rate paid on the leverage, the yield on the Fund’s common stock will decrease. In addition, in the event of a general market decline in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage.

The Fund employed leverage obtained via bank borrowing and other forms of leverage during the reporting period. On April 9, 2014, the Fund renewed its $150 million revolving credit facility for a 3-year period with a syndicate of banks (the “Revolving Credit Facility”). On June 12, 2013, the Fund entered into a note purchase agreement (the “Note Purchase Agreement”) with institutional investors relating to the private placement of $200 million of senior secured notes rated `AAA’ by Fitch Ratings, $100 million due June 12, 2020 and $100 million due June 12, 2023 (the “Notes”). On the same day, the Fund also entered into a term loan agreement providing for $200 million in secured term loans from Bank of America, N.A., $100 million due June 12, 2016 and $100 million due June 12, 2018 (the “Term Loan Facility”). On June 27, 2013, the Fund issued a private offering of 2 million shares of Series A Mandatory Redeemable Preferred Shares due June 25, 2023 (the “Series A MRPS”). The Series A MRPS have a liquidation value of $50 million and are rated ‘AA’ by Fitch Ratings. On August 13, 2015, the Fund paid down $25 million of the Revolving Credit Facility. The Fund’s outstanding balance as of October 31, 2015 was $125 million on the Revolving Credit Facility.

Aberdeen Asia-Pacific Income Fund, Inc.

Report of the Investment Manager (unaudited) (concluded)

substantial lien and burden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. The Fund is limited in its ability to declare dividends or other distributions under the terms of the various forms of leverage. In the event of an event of default under either the Revolving Credit Facility or Term Loan Facility, the lenders have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lenders may be able to control the liquidation as well. In the event of an event of default under the Note Purchase Agreement, the holders of the Notes have the right to cause a liquidation of the collateral (i.e., cause the sale of portfolio securities and other assets of the Fund).

Each of the Revolving Credit Facility Agreement, the Term Loan Agreement, the Note Purchase Agreement, and the Securities Purchase Agreement relating to the Series A MRPS, includes usual and customary covenants for the applicable type of transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede the Fund’s investment manager, investment adviser, or sub-adviser from fully managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of any and/or all of the forms of leverage. As of October 31, 2015, the Fund was in compliance with all covenants under the agreements relating to the various forms of leverage.

Interest Rate Swaps

The Fund may enter into interest rate swaps to efficiently gain interest rate exposure and hedge interest rate risk. On August 6, 2015, the Fund exited $25 million in notional value of a swap maturing on October 31, 2016. As of October 31, 2015, the Fund held interest rate swap agreements with an aggregate notional amount of $125 million, which represented 100% of the Fund’s Revolving Credit Facility. Under the terms of the agreements currently in effect, the Fund receives a floating rate of interest (three month USD-LIBOR BBA rate) and pays fixed rates of interest for the terms and based upon the notional amounts set forth below:


Remaining Terms as of October 31, 2015	Amount (in millions)		Fixed Rate Payable (%)
12 months	$	59.0		1.42
24 months		66.0		0.84

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 agreements. 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 loan facility. The implementation of this strategy is at the discretion of the Leverage Committee of the Board.

Aberdeen Asset Management Asia Limited

Aberdeen Asia-Pacific Income Fund, Inc.

Total Investment Return (unaudited)

The following table summarizes the average annual Fund performance for the 1-year, 3-year, 5-year and 10-year periods as of October 31, 2015. The Fund’s principal investment objective is to seek current income. The Fund may also achieve incidental capital appreciation.


	1 Year		3 Years		5 Years		10 Years
Net Asset Value (NAV)		-8.2%		-4.0%		1.2%		5.8%
Market Value		-12.4%		-9.5%		-1.0%		5.1%

Aberdeen Asset Management Inc. (“AAMI”) has entered into an agreement with the Fund to limit investor relation services fees, without which performance would be lower. For the fiscal year ended October 31, 2015, AAMI did not waive any investor relation service fees because the Fund did not reach the capped amount. See Note 3 in the Notes to Financial Statements. Returns represent past performance. Total investment return at net asset value (NAV) is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses”. The Fund’s total return is based on the reported NAV on each financial reporting period end. Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE MKT during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is available at www.aberdeenfax.com or by calling 800-522-5465.

The net operating expense ratio based on the fiscal year ended October 31, 2015 was 2.15%. The net operating expense ratio, excluding interest expense, and distributions to Series A Mandatory Redeemable Preferred Shares, based on the fiscal year ended October 31, 2015 was 1.14%. These ratios include a one-time expense associated with the August 2012 shelf offering costs attributed to the registered but unsold shares that expired in August 2015. See Note 5 in the Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio Composition (unaudited)

Quality of Investments⁽¹⁾

As of October 31, 2015, 58.5% of the Fund’s total investments were invested in securities where either the issue or the issuer was rated “A” or better by Standard & Poor’s or Moody’s Investors Service, Inc. The table below shows the asset quality of the Fund’s portfolio as of October 31, 2015 compared with the previous six and twelve months:


Date	AAA/Aaa %		AA/Aa %		A %		BBB/Baa %		BB/Ba* %		B* %		NR** %
October 31, 2015		36.9		12.4		9.2		22.9		7.5		5.4		5.7
April 30, 2015***		36.3		11.2		10.7		25.6		8.9		4.6		2.7
October 31, 2014		36.4		14.2		13.1		18.6		11.4		3.5		2.8

Below investment grade

Not Rated

***

Unaudited

(1)

For financial reporting purposes, credit quality ratings shown above reflect the lowest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investor Service if ratings differ. These rating agencies were selected because they are independent, nationally recognized statistical rating organization and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. The Investment Manager evaluated the credit quality of unrated investments based upon, but not limited to, credit ratings for similar investments.

Geographic Composition

The table below shows the geographical composition (with U.S. Dollar-denominated bonds issued by foreign issuers allocated into country of issuance) of the Fund’s total investments as of October 31, 2015, compared with the previous six and twelve months:


Date	Australia %		Asia (including NZ) %		Europe %		United States %		Canada %
October 31, 2015		34.6		57.7		3.8		3.8		0.1
April 30, 2015*		31.9		61.5		3.8		2.7		0.1
October 31, 2014		40.0		54.8		3.1		1.7		0.4

Unaudited

Currency Composition

The table below shows the currency composition of the Fund’s total investments as of October 31, 2015, compared with the previous six and twelve months:


Date	Australian Dollar %		Asian Currencies (including NZ Dollar) %		US Dollar* %
October 31, 2015		37.4		20.4		42.2
April 30, 2015**		38.7		20.7		40.6
October 31, 2014		42.2		13.8		44.0

Includes U.S. Dollar-denominated bonds issued by foreign issuers: 42.2% of the Fund’s total investments on October 31, 2015, 40.6% of the Fund’s total investments on April 30, 2015, 39.8% of the Fund’s total investments on October 31, 2014.

Unaudited

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio Composition (unaudited) (concluded)

Maturity Composition

As of October 31, 2015, the average maturity of the Fund’s total investments was 7.9 years, compared with 7.9 years at April 30, 2015, and 6.6 years at October 31, 2014. The following table shows the maturity composition of the Fund’s investments as of October 31, 2015, compared with the previous six and twelve months:


Date	Under 3 Years %		3 to 5 Years %		5 to 10 Years %		10 Years & Over %
October 31, 2015		22.9		15.6		42.5		19.0
April 30, 2015*		26.3		16.4		38.2		19.1
October 31, 2014		25.1		25.4		36.6		12.9

Unaudited

Aberdeen Asia-Pacific Income Fund, Inc.

Summary of Key Rates (unaudited)

The following table summarizes the movements of key interest rates and currencies from October 31, 2015 and the previous six and twelve month periods.


	October 31, 2015		April 30, 2015		October 31, 2014
Australia
90 day Bank Bills		2.11%		2.25%		2.74%
10 yr bond		2.40%		2.49%		3.19%
Australian Dollar		$0.71		$0.79		$0.88
New Zealand
90 day Bank Bills		2.98%		3.64%		3.71%
10 yr bond		3.30%		3.45%		3.99%
New Zealand Dollar		$0.68		$0.76		$0.78
South Korea
90 day commercial paper		1.57%		1.80%		2.14%
10 yr bond		2.11%		2.41%		2.65%
South Korean Won*		W1140.05		W1072.00		W1068.73
Thailand
3 months deposit rate		1.00%		1.00%		1.13%
10 yr bond		2.65%		2.48%		3.33%
Thai Baht*		B35.57		B32.97		B32.57
Philippines
90 day T-Bills		2.30%		2.35%		1.44%
10 yr bond		3.72%		4.31%		4.11%
Philippine Peso*		P46.82		P44.53		P44.88
Malaysia
3-month T-Bills		2.96%		2.93%		3.30%
10 yr bond		4.37%		3.85%		3.84%
Malaysian Ringgit*		R4.30		R3.56		R3.29
Singapore
3-month T-Bills		1.16%		0.95%		0.34%
10 yr bond		2.46%		2.25%		2.29%
Singapore Dollar*		S1.40		S1.32		S1.29
US$ Bonds**
Indonesia		4.44%		3.89%		N/A
Philippines		1.57%		1.78%		2.26%

These currencies are quoted Asian currency per U.S. Dollar. The Australian and New Zealand Dollars are quoted U.S. Dollars per currency.

Sovereign issues.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
CORPORATE BONDS—65.1%
AUSTRALIA—6.9%
AUD		3,000	AAI Ltd., 6.75%, 10/06/2016 (a)(b)	$	2,193,766
AUD		2,500	APT Pipelines Ltd., 7.75%, 07/22/2020		2,081,360
AUD		10,900	BHP Billiton Finance Ltd., 3.75%, 10/18/2017		7,862,767
AUD		8,200	Coca-Cola Amatil Ltd., 4.25%, 11/13/2019		6,087,690
AUD		5,300	DnB NOR Boligkreditt, 6.25%, 06/08/2016		3,862,350
AUD		5,000	KfW, 6.00%, 08/20/2020 (c)		4,099,262
AUD		10,600	KfW, 6.25%, 02/23/2018 (c)		8,233,034
AUD		10,500	KfW, 6.25%, 12/04/2019 (c)		8,566,131
AUD		15,000	KfW, 6.25%, 05/19/2021 (c)		12,609,247
AUD		9,788	Kommunalbanken AS, 6.50%, 04/12/2021		8,282,257
AUD		10,000	Landwirtschaftliche Rentenbank, 4.75%, 04/08/2024 (c)		7,951,542
AUD		2,900	National Capital Trust III, 3.13%, 09/30/2016 (a)(b)(d)		2,045,862
AUD		2,500	National Wealth Management Holdings Ltd., 6.75%, 06/16/2016 (a)(b)		1,811,737
AUD		4,800	New Zealand Milk Australia Pty Ltd., 6.25%, 07/11/2016		3,506,022
AUD		4,300	Novion Property Group, 7.25%, 05/02/2016		3,135,200
AUD		7,300	Qantas Airways Ltd., 7.50%, 06/11/2021		5,738,655
AUD		4,800	RWH Finance Pty Ltd., 6.20%, 03/26/2017 (a)(b)(e)		3,402,651
AUD		2,000	Telstra Corp. Ltd., 8.75%, 01/15/2020		1,736,565
AUD		4,000	Westpac Banking Corp., 7.25%, 11/18/2016		2,997,016
AUD		3,600	Woolworths Ltd., 6.75%, 03/22/2016		2,606,976
					98,810,090
CHINA—15.3%
USD		3,950	Agile Property Holdings Ltd., 9.00%, 05/21/2018 (b)(f)		4,178,045
CNH		11,250	China Development Bank Corp., 3.60%, 11/13/2018		1,763,650
USD		8,450	China Overseas Finance Cayman Island II Ltd., 5.50%, 11/10/2020 (f)		9,195,603
USD		4,955	China Resources Gas Group Ltd., 4.50%, 04/05/2022 (f)		5,150,425
USD		9,550	CIFI Holdings Group Co. Ltd., 12.25%, 04/15/2016 (b)(f)		10,448,092
USD		7,500	CNOOC Curtis Funding No 1 Pty Ltd., 4.50%, 10/03/2023 (f)		7,844,542
USD		12,160	CNOOC Nexen Finance 2014 ULC, 4.25%, 04/30/2024		12,487,821
USD		12,670	Country Garden Holdings Co. Ltd., 7.25%, 10/04/2017 (b)(f)		13,214,823
USD		4,348	CRCC Yuxiang Ltd., 3.50%, 05/16/2023 (f)		4,255,118
USD		15,143	ENN Energy Holdings Ltd., 6.00%, 05/13/2021 (f)		16,599,242
USD		10,700	Franshion Investment Ltd., 4.70%, 10/26/2017 (f)		11,033,893
USD		5,876	Future Land Development Holdings Ltd., 10.25%, 07/21/2017 (b)(f)		6,373,421
USD		8,800	Green Dragon Gas Ltd., 10.00%, 11/30/2015 (b)(e)(f)		8,580,000
USD		5,745	Greenland Global Investment Ltd., 5.88%, 07/03/2024 (f)		5,699,603
USD		8,629	Greenland Hong Kong Holdings Ltd., 4.75%, 10/18/2016 (f)		8,680,343
USD		3,674	Kunlun Energy Co. Ltd., 3.75%, 05/13/2025 (f)		3,574,177
USD		3,950	KWG Property Holding Ltd., 8.98%, 01/14/2017 (b)(f)		4,188,189
USD		3,800	Logan Property Holdings Co. Ltd., 11.25%, 06/04/2017 (b)(f)		4,161,091
USD		14,434	Semiconductor Manufacturing International Corp., 4.13%, 10/07/2019 (f)		14,403,515
USD		1,385	Shanghai Electric Group Investment Ltd., 3.00%, 08/14/2019		1,389,584
USD		10,200	Sinopec Capital 2013 Ltd., 144A, 3.13%, 04/24/2023 (f)		9,815,797
USD		4,109	Sinopec Capital 2013 Ltd., REG S, 3.13%, 04/24/2023 (f)		3,954,226
USD		1,600	Sinopec Group Overseas Development 2012 Ltd., 3.90%, 05/17/2022 (f)		1,646,122
USD		4,400	Sinopec Group Overseas Development 2013 Ltd., 4.38%, 10/17/2023 (f)		4,604,939
USD		8,584	Trillion Chance Ltd., 8.50%, 01/10/2017 (b)(f)		8,777,183
USD		20,800	Wanda Properties International Co. Ltd., 7.25%, 01/29/2024 (f)		22,818,245
USD		4,852	Yingde Gases Investment Ltd., 144A, 8.13%, 04/22/2016 (b)(f)		4,536,620
USD		5,313	Yingde Gases Investment Ltd., REG S, 8.13%, 04/22/2016 (b)(f)		4,967,655
USD		4,300	Yuzhou Properties Co. Ltd., 9.00%, 12/08/2017 (b)(f)		4,536,027
					218,877,991

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
CORPORATE BONDS (continued)
HONG KONG—8.6%
USD		4,103	Champion Ltd., 3.75%, 01/17/2023 (f)	$	3,994,131
USD		5,400	CNPC General Capital Ltd., 2.75%, 05/14/2019 (f)		5,417,199
USD		8,350	CNPC General Capital Ltd., 3.40%, 04/16/2023 (f)		8,160,380
USD		17,000	HLP Finance Ltd., 4.75%, 06/25/2022 (f)		17,701,488
USD		1,600	Hong Kong Land Finance Cayman Islands Co. Ltd., 4.50%, 06/01/2022		1,711,723
USD		5,608	HPHT Finance 15 Ltd., 2.88%, 03/17/2020 (f)		5,608,314
USD		9,500	Hutchison Whampoa Finance CI Ltd., 7.50%, 08/01/2027 (f)		12,552,360
USD		4,417	Hutchison Whampoa International Ltd., 1.63%, 10/31/2017 (f)		4,405,048
USD		2,880	Hutchison Whampoa International Ltd., 7.45%, 11/24/2033 (f)		3,957,160
USD		3,973	Hutchison Whampoa International Ltd., 7.63%, 04/09/2019 (f)		4,658,513
USD		8,382	LS Finance 2022 Ltd., 4.25%, 10/16/2022 (f)		8,291,198
USD		1,250	Shimao Property Holdings Ltd., 6.63%, 01/14/2017 (b)(f)		1,303,460
USD		7,758	Shimao Property Holdings Ltd., 8.13%, 01/22/2018 (b)(f)		8,331,021
USD		14,355	Standard Chartered PLC, 3.95%, 01/11/2023 (f)		14,071,532
USD		5,545	Standard Chartered PLC, 144A, 3.95%, 01/11/2023 (f)		5,435,503
USD		1,800	Swire Pacific Financing Ltd., 6.25%, 04/18/2018		1,975,824
USD		2,440	Swire Properties Financing Ltd., 2.75%, 03/07/2020 (f)		2,462,597
USD		11,300	Swire Properties Financing Ltd., 4.38%, 06/18/2022 (f)		12,099,373
					122,136,824
INDIA—9.5%
USD		8,666	ABJA Investment Co. Pte Ltd., 5.95%, 07/31/2024 (f)		8,067,353
USD		2,799	Axis Bank Ltd, 5.13%, 09/05/2017 (f)		2,945,864
INR		300,000	Axis Bank Ltd., 8.85%, 12/05/2024		4,774,070
USD		2,900	Bank of Baroda, 4.88%, 07/23/2019 (f)		3,094,045
USD		3,050	Bank of Baroda, 5.00%, 08/24/2016 (f)		3,124,670
USD		6,727	Bharti Airtel International Netherlands BV, 5.13%, 03/11/2023 (f)		7,136,055
USD		3,652	Bharti Airtel International Netherlands BV, 5.35%, 05/20/2024 (f)		3,923,347
USD		4,573	Bharti Airtel Ltd., 4.38%, 06/10/2025 (f)		4,600,964
INR		100,000	Export-Import Bank of India, 8.87%, 10/30/2029		1,636,341
USD		6,487	GCX Ltd., 7.00%, 08/01/2016 (b)(f)		6,322,607
USD		7,000	HDFC Bank Ltd., 3.00%, 03/06/2018 (f)		7,090,888
USD		7,909	ICICI Bank Ltd., 3.50%, 03/18/2020 (f)		8,043,184
USD		3,515	ICICI Bank Ltd., 4.80%, 05/22/2019 (f)		3,743,405
INR		250,000	ICICI Bank Ltd., 9.15%, 08/06/2024		4,095,187
INR		250,000	Indian Railway Finance Corp. Ltd., 8.83%, 03/25/2023		3,975,614
USD		4,400	NTPC Ltd., 4.75%, 10/03/2022 (f)		4,648,767
INR		200,000	NTPC Ltd., 8.49%, 03/25/2025		3,241,334
INR		100,000	NTPC Ltd., 8.73%, 03/07/2023		1,589,393
INR		100,000	NTPC Ltd., 9.17%, 09/22/2024		1,636,945
USD		11,954	ONGC Videsh Ltd., 4.63%, 07/15/2024 (f)		12,330,240
INR		250,000	Power Finance Corp. Ltd., 8.39%, 04/19/2025		3,816,929
INR		400,000	Power Finance Corp. Ltd., 8.65%, 12/28/2024		6,217,951
INR		200,000	Power Grid Corp. of India Ltd., 8.20%, 01/23/2025		3,074,078
INR		200,000	Power Grid Corp. of India Ltd., 8.93%, 10/20/2022		3,197,227
INR		300,000	Power Grid Corp. of India Ltd., 9.30%, 09/04/2024		4,923,292
INR		200,000	Rural Electrification Corp. Ltd., 8.44%, 12/04/2021		3,088,209
INR		150,000	Rural Electrification Corp. Ltd., 9.34%, 08/25/2024		2,421,580
INR		270,000	Rural Electrification Corp. Ltd., 9.35%, 06/15/2022		4,350,250
USD		4,800	State Bank of India, 3.62%, 04/17/2019 (f)		4,927,262
INR		150,000	Steel Authority of India Ltd., 9.00%, 10/14/2024		2,407,401
INR		100,000	Tata Motors Ltd., 9.73%, 10/01/2020		1,588,900
					136,033,352

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
CORPORATE BONDS (continued)
INDONESIA—3.9%
IDR		24,000,000	Bank OCBC Nisp Tbk PT, 9.40%, 02/10/2017	$	1,734,226
USD		3,886	Indo Energy Finance BV, 7.00%, 11/30/2015 (b)(f)		2,143,137
USD		1,200	Jababeka International BV, 7.50%, 09/24/2017 (b)(f)		1,144,338
IDR		30,000,000	Lembaga Pembiayaan Ekspor Indonesia, 9.50%, 03/13/2020		2,168,110
USD		3,150	Majapahit Holding BV, 7.88%, 06/29/2037 (f)		3,531,938
USD		8,900	Majapahit Holding BV, 8.00%, 08/07/2019 (f)		10,034,750
USD		8,888	Pertamina Persero PT, 5.63%, 05/20/2043 (f)		7,390,372
USD		11,900	Pertamina Persero PT, 6.00%, 05/03/2042 (f)		10,323,250
USD		7,600	Pertamina Persero PT, 6.45%, 05/30/2044 (f)		7,039,530
USD		4,600	Perusahaan Listrik Negara PT, 5.25%, 10/24/2042 (f)		3,783,500
USD		6,009	Perusahaan Listrik Negara PT, 5.25%, 10/24/2042 (f)		4,942,402
USD		2,000	Pratama Agung Pte Ltd., 6.25%, 02/24/2018 (b)(f)		1,959,358
					56,194,911
MALAYSIA—3.1%
USD		11,700	AMBB Capital (L) Ltd., 6.77%, 01/27/2016 (a)(b)(d)(g)		11,595,653
USD		900	Petroliam Nasional Bhd, 7.63%, 10/15/2026 (f)		1,176,257
USD		8,180	Petronas Capital Ltd., 3.13%, 03/18/2022 (f)		8,012,326
USD		50	Petronas Capital Ltd., 5.25%, 08/12/2019 (f)		54,541
USD		6,791	Petronas Capital Ltd., 7.88%, 05/22/2022 (f)		8,433,614
USD		2,650	Public Bank Bhd, 6.84%, 08/22/2016 (a)(b)		2,706,220
USD		11,550	SBB Capital Corp., 6.62%, 11/02/2015 (a)(b)(d)(f)(g)		11,550,000
					43,528,611
PHILIPPINES—2.0%
USD		3,700	Energy Development Corp., 6.50%, 01/20/2021 (f)		4,060,750
USD		3,072	Philippine Long Distance Telephone Co., 8.35%, 03/06/2017		3,310,618
USD		16,534	Power Sector Assets & Liabilities Management Corp., 7.39%, 12/02/2024 (c)(f)		21,576,870
					28,948,238
REPUBLIC OF SOUTH KOREA—4.2%
USD		7,218	Doosan Heavy Industries & Construction Co. Ltd., 2.13%, 04/27/2020 (f)		7,124,859
USD		6,000	Hyundai Capital Services, Inc., 2.63%, 09/29/2020 (f)		5,934,414
USD		4,552	Hyundai Capital Services, Inc., 2.63%, 09/29/2020 (f)		4,502,242
USD		4,211	KEB Hana Bank, 2.50%, 06/12/2019 (f)		4,223,204
USD		2,050	Korea Expressway Corp., 1.88%, 10/22/2017 (f)		2,053,327
USD		1,400	Korea Gas Corp., 2.88%, 07/29/2018 (f)		1,430,576
USD		4,000	Korea Hydro & Nuclear Power Co. Ltd., 2.88%, 10/02/2018 (f)		4,082,432
USD		10,858	Korea Hydro & Nuclear Power Co. Ltd., 3.00%, 09/19/2022 (f)		10,902,702
USD		6,305	Korea Hydro & Nuclear Power Co. Ltd., 3.25%, 06/15/2025 (f)		6,338,612
USD		3,000	Korea South-East Power Co. Ltd., 3.63%, 01/29/2017 (f)		3,066,489
USD		6,390	Minera y Metalergica del Boleo SA de CV, 2.88%, 05/07/2019 (f)		6,494,515
USD		4,200	Shinhan Bank, 1.88%, 07/30/2018 (f)		4,173,767
					60,327,139
SINGAPORE—2.0%
SGD		2,750	CapitaMalls Asia Treasury Ltd., 3.95%, 08/24/2017		2,017,447
USD		1,000	MPM Global Pte Ltd., 6.75%, 09/19/2017 (b)(f)		949,854
USD		8,900	Oversea-Chinese Banking Corp. Ltd., 3.15%, 03/11/2018 (a)(b)(f)(g)		8,991,981
USD		7,450	Oversea-Chinese Banking Corp. Ltd., 3.75%, 11/15/2017 (a)(b)(f)(g)		7,642,210
USD		4,000	United Overseas Bank Ltd., 2.88%, 10/17/2017 (a)(b)(f)(g)		4,039,128
USD		4,400	United Overseas Bank Ltd., 3.75%, 09/19/2019 (a)(b)(f)		4,480,476
					28,121,096

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
CORPORATE BONDS (continued)
SRI LANKA—0.2%
USD		3,300	Bank of Ceylon, 5.33%, 04/16/2018 (f)	$	3,279,375
SUPRANATIONAL—5.3%
AUD		14,000	Asian Development Bank, 5.00%, 03/09/2022		11,229,327
AUD		13,800	Asian Development Bank, 5.50%, 02/15/2016		9,933,391
AUD		16,800	Asian Development Bank, 6.25%, 03/05/2020		13,812,791
AUD		10,000	Inter-American Development Bank, 6.00%, 05/25/2016		7,283,959
AUD		11,200	Inter-American Development Bank, 6.50%, 08/20/2019		9,164,249
AUD		10,000	International Bank for Reconstruction & Development, 4.25%, 06/24/2025		7,812,965
AUD		8,900	International Bank for Reconstruction & Development, 5.75%, 10/21/2019		7,148,418
AUD		10,300	International Bank for Reconstruction & Development, 6.00%, 11/09/2016		7,631,602
AUD		2,600	International Finance Corp., 5.75%, 07/28/2020		2,117,003
					76,133,705
THAILAND—3.5%
USD		2,400	Bangkok Bank PCL, 4.80%, 10/18/2020 (f)		2,609,657
USD		4,200	Bangkok Bank PCL, 5.00%, 10/03/2023 (f)		4,606,736
USD		4,800	Bangkok Bank PCL, 9.03%, 03/15/2029 (f)		6,608,208
USD		17,170	Krung Thai Bank PCL, 5.20%, 12/26/2019 (a)(b)(f)		17,449,373
USD		9,440	PTT Global Chemical PCL, 4.25%, 09/19/2022 (f)		9,704,254
USD		4,500	Siam Commercial Bank Ltd., 3.38%, 09/19/2017 (f)		4,602,501
USD		4,002	Siam Commercial Bank PCL, 3.50%, 04/07/2019 (f)		4,098,104
					49,678,833
UNITED KINGDOM—0.6%
USD		7,924	HSBC Holdings PLC, 6.38%, 03/30/2025 (a)(b)(d)(g)		7,824,950
			Total Corporate Bonds—65.1% (cost $970,371,547)		929,895,115
GOVERNMENT BONDS—66.3%
AUSTRALIA—38.4%
AUD		34,700	Australia Government Bond, 3.25%, 04/21/2025 (f)		26,045,885
AUD		30,300	Australia Government Bond, 3.25%, 04/21/2029 (f)		22,370,085
AUD		105,300	Australia Government Bond, 3.75%, 04/21/2037 (f)		80,743,656
AUD		76,500	Australia Government Bond, 4.50%, 04/21/2033 (f)		64,735,394
AUD		41,200	Australia Government Bond, 4.75%, 06/15/2016 (f)		29,917,249
AUD		7,000	Australia Government Bond, 5.50%, 04/21/2023 (f)		6,042,003
AUD		35,300	Australia Government Bond, 5.75%, 07/15/2022 (f)		30,530,631
AUD		15,000	New South Wales Treasury Corp., 6.00%, 03/01/2022		12,878,638
AUD		27,100	Queensland Treasury Corp., 6.00%, 04/21/2016 (f)		19,684,453
AUD		22,850	Queensland Treasury Corp., 6.00%, 02/21/2018 (f)		17,742,378
AUD		31,190	Queensland Treasury Corp., 6.00%, 06/14/2021 (c)(f)		26,411,217
AUD		47,100	Queensland Treasury Corp., 6.25%, 06/14/2019 (c)		38,461,489
AUD		24,330	Queensland Treasury Corp., 6.25%, 02/21/2020 (f)		20,107,633
AUD		131,500	Treasury Corp. of Victoria, 5.75%, 11/15/2016		97,419,459
AUD		14,250	Treasury Corp. of Victoria, 6.00%, 06/15/2020		11,838,858
AUD		35,350	Treasury Corp. of Victoria, 6.00%, 10/17/2022		30,668,657
AUD		15,000	Western Australian Treasury Corp., 7.00%, 07/15/2021		13,164,288
					548,761,973
BANGLADESH—0.3%
BDT		200,000	Bangladesh Treasury Bond, 11.23%, 01/15/2019		2,890,075
BDT		100,000	Bangladesh Treasury Bond, 11.78%, 08/14/2018		1,448,067
					4,338,142

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
GOVERNMENT BONDS (continued)
CHINA—4.9%
CNH		13,000	China Development Bank, 3.35%, 03/20/2017	$	2,040,701
CNY		15,000	China Development Bank, 5.80%, 01/03/2016		2,393,471
CNY		50,000	China Government Bond, 3.28%, 08/05/2020 (h)		8,031,160
CNY		10,000	China Government Bond, 3.36%, 05/24/2022 (h)		1,610,248
CNY		40,000	China Government Bond, 3.41%, 06/24/2020 (h)		6,462,050
CNY		20,000	China Government Bond, 3.46%, 07/11/2020 (h)		3,237,211
CNY		2,000	China Government Bond, 3.57%, 11/17/2021 (h)		325,949
CNY		88,000	China Government Bond, 3.64%, 04/09/2025 (h)		14,534,076
CNY		4,000	China Government Bond, 3.77%, 08/15/2016 (h)		639,811
CNY		60,000	China Government Bond, 4.08%, 08/22/2023 (h)		10,140,470
CNY		30,000	China Government Bond, 4.10%, 09/27/2032 (h)		5,128,250
CNY		8,000	China Government Bond, 4.13%, 11/07/2018 (h)		1,314,750
CNY		20,000	China Government Bond, 4.13%, 09/18/2024 (h)		3,416,310
CNY		20,000	China Government Bond, 4.15%, 04/28/2031 (h)		3,457,257
CNH		13,000	Export-Import Bank of China (The), 3.25%, 01/17/2021		2,040,709
USD		5,531	Export-Import Bank of China (The), 3.63%, 07/31/2024 (f)		5,678,705
					70,451,128
INDIA—3.1%
INR		1,885,000	India Government Bond, 8.12%, 12/10/2020		29,341,960
INR		125,000	India Government Bond, 8.30%, 07/02/2040		1,991,845
INR		16,000	India Government Bond, 8.33%, 06/07/2036		255,592
INR		83,000	India Government Bond, 8.40%, 07/28/2024		1,318,364
INR		502,500	India Government Bond, 8.60%, 06/02/2028		8,140,561
INR		150,000	India Government Bond, 8.83%, 12/12/2041		2,510,517
INR		8,870	India Government Bond, 9.20%, 09/30/2030		150,579
					43,709,418
INDONESIA—3.7%
USD		7,989	Indonesia Government International Bond, 3.38%, 04/15/2023 (f)		7,612,063
USD		3,500	Indonesia Government International Bond, 5.25%, 01/17/2042 (f)		3,323,250
USD		6,900	Indonesia Government International Bond, 6.63%, 02/17/2037 (f)		7,583,100
IDR		47,000,000	Indonesia Treasury Bond, 8.25%, 06/15/2032		3,138,749
IDR		40,000,000	Indonesia Treasury Bond, 8.25%, 05/15/2036		2,665,816
IDR		214,000,000	Indonesia Treasury Bond, 8.38%, 03/15/2024		15,229,452
IDR		40,400,000	Indonesia Treasury Bond, 8.38%, 03/15/2034		2,751,155
IDR		30,000,000	Indonesia Treasury Bond, 9.00%, 03/15/2029		2,175,299
IDR		21,000,000	Indonesia Treasury Bond, 9.50%, 07/15/2031		1,561,812
USD		2,050	Perusahaan Penerbit SBSN, 4.00%, 11/21/2018 (f)		2,147,375
USD		3,981	Perusahaan Penerbit SBSN, 4.35%, 09/10/2024 (f)		3,866,745
					52,054,816
MALAYSIA—0.5%
MYR		30,000	Malaysia Government Investment Issue, 0.01%, 10/31/2035		7,015,384
NEW ZEALAND—0.1%
NZD		1,500	Province of Quebec, 6.75%, 11/09/2015		1,016,226
PHILIPPINES—3.2%
PHP		347,040	Philippine Government Bond, 5.75%, 11/24/2021		8,316,204
PHP		544	Philippine Government Bond, 6.38%, 01/19/2022		13,496
PHP		331,030	Philippine Government Bond, 9.13%, 09/04/2016		7,462,817

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
GOVERNMENT BONDS (continued)
PHILIPPINES (continued)
PHP		851,000	Philippine Government International Bond, 3.63%, 03/21/2033	$	16,426,463
USD		7,050	Philippine Government International Bond, 7.75%, 01/14/2031		10,180,369
USD		2,970	Philippine Government International Bond, 9.88%, 01/15/2019		3,728,437
					46,127,786
REPUBLIC OF SOUTH KOREA—6.3%
USD		12,500	Export-Import Bank of Korea, 2.63%, 12/30/2020		12,646,712
USD		5,600	Korea Land & Housing Corp., 1.88%, 08/02/2017 (f)		5,617,478
KRW		1,000,000	Korea Treasury Bond, 2.75%, 09/10/2017		894,917
KRW		46,000,000	Korea Treasury Bond, 3.00%, 09/10/2024		43,302,420
KRW		5,500,000	Korea Treasury Bond, 3.25%, 09/10/2018		5,035,150
KRW		10,300,000	Korea Treasury Bond, 3.38%, 09/10/2023		9,917,580
KRW		7,000,000	Korea Treasury Bond, 3.50%, 03/10/2024		6,817,112
KRW		3,300,000	Korea Treasury Bond, 3.75%, 06/10/2022		3,218,968
KRW		1,500,000	Korea Treasury Bond, 3.75%, 12/10/2033		1,614,555
KRW		1,000,000	Korea Treasury Bond, 4.25%, 06/10/2021		987,845
					90,052,737
SINGAPORE—2.8%
SGD		3,000	Housing & Development Board, 1.01%, 09/19/2016		2,133,814
SGD		3,000	Housing & Development Board, 1.83%, 11/21/2018 (f)		2,133,658
SGD		750	Housing & Development Board, 2.02%, 02/22/2016		536,520
SGD		2,000	Housing & Development Board, 3.14%, 03/18/2021		1,482,874
SGD		10,000	Singapore Government Bond, 0.50%, 04/01/2018		6,995,503
SGD		20,000	Singapore Government Bond, 3.00%, 09/01/2024		14,968,948
SGD		15,490	Singapore Government Bond, 3.50%, 03/01/2027		12,035,738
					40,287,055
SRI LANKA—2.3%
USD		9,754	Sri Lanka Government Bonds, 6.13%, 06/03/2025 (f)		9,207,600
LKR		90,000	Sri Lanka Government Bonds, 8.00%, 09/01/2016		640,688
LKR		151,000	Sri Lanka Government Bonds, 8.00%, 11/15/2018		1,048,697
LKR		724,600	Sri Lanka Government Bonds, 8.50%, 11/01/2015		5,135,183
LKR		230,000	Sri Lanka Government Bonds, 8.50%, 04/01/2018		1,623,987
LKR		388,000	Sri Lanka Government Bonds, 8.50%, 07/15/2018		2,732,782
LKR		293,000	Sri Lanka Government Bonds, 8.75%, 05/15/2017		2,104,265
LKR		550,000	Sri Lanka Government Bonds, 11.20%, 07/01/2022		4,188,131
LKR		820,000	Sri Lanka Government Bonds, 11.40%, 01/01/2024		6,320,459
					33,001,792
THAILAND—0.7%
THB		300,000	Thailand Government Bond, 4.26%, 12/12/2037 (f)		9,254,896
			Total Government Bonds—66.3% (cost $1,092,434,743)		946,071,353

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (continued)

As of October 31, 2015


	Principal Amount (000)		Description	Value (US$)
SHORT-TERM INVESTMENT—5.4%
UNITED STATES—5.4%
USD		76,319	Repurchase Agreement, Fixed Income Clearing Corp., 0.00% dated 10/30/2015, due 11/02/2015 in the amount of $76,319,000 (collateralized by $78,115,000 U.S. Treasury Obligations, maturing 07/31/2016—11/15/2024; value of $77,852,538)	$	76,319,000
			Total Short-Term Investment—5.4% (cost $76,319,000)		76,319,000
			Total Investments—136.8% (cost $2,139,125,290)		1,952,285,468

			Long Term Debt Securities		(525,000,000	)
			Mandatory Redeemable Preferred Stock at Liquidation Value		(50,000,000	)
			Other Assets in Excess of Liabilities—3.5%		50,363,100
			Net Assets—100.0%	$	1,427,648,568


AUD—Australian Dollar	INR—Indian Rupee	PHP—Philippine Peso
BDT—Bangladesh Taka	KRW—South Korean Won	SGD—Singapore Dollar
CNH—Chinese Yuan Renminbi Offshore	LKR—Sri Lanka Rupee	THB—Thai Baht
CNY—Chinese Yuan Renminbi	MYR—Malaysian Ringgit	USD—U.S. Dollar
IDR—Indonesian Rupiah	NZD—New Zealand Dollar

(a)

Indicates a variable rate security. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at October 31, 2015.

(b)

The maturity date presented for these instruments represents the next call/put date.

(c)

This security is government guaranteed.

(d)

Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely.

(e)

Illiquid security.

(f)

Denotes a restricted security, see Note 2(c).

(g)

Variable or Floating Rate Security. Rate disclosed is as of October 31, 2015.

(h)

China A-Shares. These shares are issued in local currency, traded in the local stock markets and are held through a qualified foreign institutional investor license.

At October 31, 2015, the Fund held the following futures contracts:


Futures Contracts	Counterparty		Number of Contracts Long (Short)			Expiration Date		Unrealized Appreciation/ (Depreciation)
United States Treasury Note 6%—2 year		UBS		499			12/31/2015	$	(97,210	)
United States Treasury Note 6%—5 year		UBS		(34	)		12/31/2015		27,013
United States Treasury Note 6%—10 year		UBS		(693	)		12/21/2015		(118,892	)
United States Treasury Note 6%—30 year		UBS		136			12/21/2015		(33,132	)
								$	(222,221	)

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Portfolio of Investments (concluded)

As of October 31, 2015

At October 31, 2015, the Fund’s open forward foreign currency exchange contracts were as follows:

Purchase Contracts
Settlement Date*

Counterparty

Amount
Purchased

Amount Sold

Fair Value

Unrealized
Appreciation/
(Depreciation)

Indian Rupee/United States Dollar

11/03/2015

Standard Chartered Bank

INR 6,909,964,950

USD 106,500,000

105,745,886

(754,114

)

02/02/2016

Citigroup

INR 2,734,188,030

USD 41,300,000

41,175,464

(124,536

)

Philippine Peso/United States Dollar

12/03/2015

BNP Paribas

PHP 412,808,000

USD 8,800,000

8,802,473

2,473

Singapore Dollar/United States Dollar

01/14/2016

Royal Bank of Canada

SGD 81,445,035

USD 57,900,000

58,015,345

115,345

01/14/2016

State Street

SGD 43,818,930

USD 31,200,000

31,213,325

13,325

South Korean Won/United States Dollar

12/03/2015

State Street

KRW 11,317,440,000

USD 9,600,000

9,924,097

324,097

Thai Baht/United States Dollar

12/08/2015

Credit Suisse

THB 716,489,000

USD 19,700,000

20,118,978

418,978

274,995,568

(4,432

)

Sale Contracts
Settlement Date*

Counterparty

Amount
Purchased

Amount Sold

Fair Value

Unrealized
Appreciation/
(Depreciation)

United States Dollar/Australian Dollar

01/14/2016

Credit Suisse

USD 172,000,000

AUD 236,686,391

168,176,631

3,823,369

United States Dollar/Chinese Renminbi

11/09/2015

Standard Chartered Bank

USD 23,700,000

CNY 155,353,500

24,582,873

(882,873

)

United States Dollar/Chinese Yuan Renminbi Offshore

11/09/2015

State Street

USD 7,900,000

CNH 49,690,450

7,855,515

44,485

United States Dollar/Indian Rupee

11/03/2015

Standard Chartered Bank

USD 65,100,000

INR 4,227,594,000

64,696,518

403,482

United States Dollar/Philippine Peso

12/03/2015

Goldman Sachs

USD 24,200,000

PHP 1,133,286,000

24,165,520

34,480

12/03/2015

Standard Chartered Bank

USD 9,700,000

PHP 459,683,000

9,802,008

(102,008

)

United States Dollar/Singapore Dollar

01/14/2016

Standard Chartered Bank

USD 22,200,000

SGD 31,053,360

22,120,088

79,912

01/14/2016

State Street

USD 59,200,000

SGD 83,563,177

59,524,151

(324,151

)

United States Dollar/South Korean Won

12/03/2015

Goldman Sachs

USD 10,800,000

KRW 12,463,470,000

10,929,034

(129,034

)

12/03/2015

State Street

USD 32,100,001

KRW 38,535,792,000

33,791,470

(1,691,469

)

United States Dollar/Thai Baht

12/08/2015

Credit Suisse

USD 21,000,000

THB 763,770,000

21,446,627

(446,627

)

12/08/2015

Goldman Sachs

USD 10,000,000

THB 363,600,000

10,209,871

(209,871

)

457,300,306

599,695

Certain contracts with different trade dates and like characteristics have been shown net.

At October 31, 2015, the Fund’s over-the-counter interest rate swaps were as follows:

Currency

Notional
Amount

Expiration
Date

Counterparty

Receive (Pay)
Floating Rate

Floating Rate Index

Fixed
Rate

Unrealized
Depreciation

USD

59,000,000

10/31/2016

Barclays Bank

Receive

3-month LIBOR Index

1.42

(512,903

)

USD

66,000,000

11/01/2017

Barclays Bank

Receive

3-month LIBOR Index

0.84

(209,600

)

(722,503

)

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Statement of Assets and Liabilities

As of October 31, 2015


Assets
Investments, at value (cost $2,062,806,290)	$	1,875,966,468
Repurchase agreement, at value (cost $76,319,000)		76,319,000
Foreign currency, at value (cost $36,541,028)		36,141,940
Cash at broker for over-the-counter interest rate swaps		1,050,000
Cash at broker for futures contracts		888,480
Cash at broker for China A shares		72,625
Interest receivable		24,541,666
Receivable for investments sold		5,828,794
Unrealized appreciation on forward foreign currency exchange contracts		5,259,946
Prepaid expenses in connection with revolving credit facility, senior secured notes, term loans and Series A Mandatory Redeemable Preferred Shares		3,146,090
Variation margin receivable for futures contracts		27,013
Prepaid expenses		199,936
Total assets		2,029,441,958

Liabilities
Senior secured notes payable (Note 8)		200,000,000
Revolving credit facility payable (Note 9)		125,000,000
5-year term loan payable (Note 9)		100,000,000
3-year term loan payable (Note 9)		100,000,000
Series A Mandatory Redeemable Preferred Shares ($25.00 liquidation value per share; 2,000,000 shares outstanding) (Note 7)		50,000,000
Payable for investments purchased		14,402,242
Unrealized depreciation on forward foreign currency exchange contracts		4,664,683
Interest payable on revolving credit facility, senior secured notes and term loans		3,371,168
Investment management fees payable (Note 3)		1,053,696
Deferred foreign capital gains tax		785,155
Dividend payable on Series A Mandatory Redeemable Preferred Shares		756,253
Unrealized depreciation on over-the-counter interest rate swaps		722,503
Variation margin payable for futures contracts		249,234
Administration fee payable (Note 3)		221,820
Investor relations fees payable (Note 3)		44,036
Due to custodian		114,067
Director fees payable		90
Accrued Expenses		408,443
Total liabilities		601,793,390

Net Assets Applicable to Common Shareholders	$	1,427,648,568

Composition of Net Assets:
Common stock (par value $0.01 per share) (Note 5)	$	2,563,091
Paid-in capital in excess of par		1,535,685,633
Distributions in excess of net investment income		(474,699	)
Accumulated net realized loss from investments, interest rate swaps and futures contracts		(97,138,950	)
Net unrealized appreciation on investments, futures contracts and interest rate swaps		54,193,328
Accumulated net realized foreign exchange gains		175,532,090
Net unrealized foreign exchange and forward foreign currency contract loss		(242,711,925	)
Net Assets Applicable to Common Shareholders	$	1,427,648,568
Net asset value per share based on 256,309,138 shares issued and outstanding	$	5.57

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Statement of Operations

For the Fiscal Year Ended October 31, 2015


Net Investment Income

Income
Interest and amortization of discount and premium (net of foreign withholding taxes of $1,279,746)	$	105,478,039
Other income		23,471
		105,501,510

Expenses
Investment management fee (Note 3)		11,322,847
Administration fee (Note 3)		2,357,523
Revolving credit facility, senior secured notes, term loans and Series A Mandatory Redeemable Preferred Shares fees and expenses		780,019
Custodian’s fees and expenses		749,392
Investor relations fees and expenses (Note 3)		530,296
Insurance expense		393,422
Reports to shareholders and proxy solicitation		304,474
Directors’ fees and expenses		242,387
Offering costs expense (Note 5)		219,739
Transfer agent’s fees and expenses		149,079
Legal fees and expenses		148,874
Independent auditors’ fees and expenses		87,700
Miscellaneous		341,402
Total operating expenses, excluding interest expense		17,627,154
Interest expense (Notes 8 & 9)		13,625,257
Distributions to Series A Mandatory Redeemable Preferred Shares (Note 7)		2,091,147
Net operating expenses		33,343,558

Net investment income applicable to common shareholders		72,157,952

Net Realized and Unrealized Gains/(Losses) on Investments and Foreign Currency Related Transactions

Net realized gain/(loss) from:
Investment transactions (including $288,786 capital gains tax)		9,407,200
Interest rate swaps		(1,518,307	)
Futures contracts		(10,806,500	)
Forward and spot foreign currency exchange contracts		10,244,441
Foreign currency transactions		(79,009,620	)
		(71,682,786	)

Net change in unrealized appreciation/(depreciation) on:
Investments (including $(376,831) change in deferred capital gains tax)		(14,869,680	)
Interest rate swaps		150,784
Futures contracts		(1,731,055	)
Forward foreign currency exchange rate contracts		(3,558,057	)
Foreign currency translation		(136,919,997	)
		(156,928,005	)
Net loss from investments, interest rate swaps, futures contracts and foreign currencies		(228,610,791	)
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations	$	(156,452,839	)

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Statements of Changes in Net Assets


	For the Fiscal Year Ended October 31, 2015			For the Fiscal Year Ended October 31, 2014

Increase/(Decrease) in Net Assets Applicable to Common Shareholders

Operations:
Net investment income	$	72,157,952		$	73,417,962
Net realized loss from investments, interest rate swaps and futures contracts		(2,917,607	)		(5,581,394	)
Net realized loss from foreign currency transactions		(68,765,179	)		(56,112,064	)
Net change in unrealized appreciation/(depreciation) on investments, interest rate swaps and futures contracts		(16,449,951	)		40,484,227
Net change in unrealized appreciation/(depreciation) on foreign currency contracts and translation		(140,478,054	)		(27,649,383	)
Net increase/(decrease) in net assets applicable to common shareholders resulting from operations		(156,452,839	)		24,559,348

Distributions to Common Shareholders from:
Net investment income		(102,766,980	)		(111,091,699	)
Tax return of capital		(5,766,249	)		—
Net decrease in net assets applicable to common shareholders from distributions		(108,533,229	)		(111,091,699	)

Common Stock Transactions:
Repurchase of common stock resulting in the reduction of 4,991,465 and 6,107,325 shares of common stock, respectively (Note 6)		(26,309,672	)		(36,993,347	)
Change in net assets from common stock transactions		(26,309,672	)		(36,993,347	)
Change in net assets applicable to common shareholders resulting from operations		(291,295,740	)		(123,525,698	)

Net Assets Applicable to Common Shareholders:
Beginning of year		1,718,944,308			1,842,470,006
End of year (including distributions in excess of net investment income/ accumulated net investment income) of $(474,699) and $1,614,609, respectively)	$	1,427,648,568		$	1,718,944,308

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Statement of Cash Flows

For the Fiscal Year Ended October 31, 2015


Increase/(Decrease) in Cash (Including Foreign Currency)
Cash flows provided from (used for) operating activities:
Interest received (excluding discount and premium amortization of $6,659,764)	$	115,110,493
Operating expenses paid		(31,191,023	)
Dividends paid to Series A Mandatory Redeemable Preferred Shares		(1,546,875	)
Purchases and sales of short-term portfolio investments, net		(37,745,000	)
Purchases of long-term portfolio investments		(964,668,768	)
Proceeds from sales of long-term portfolio investments		1,092,446,104
Realized gains on forward foreign currency exchange contracts closed		11,064,939
Realized losses on interest rate swap transactions		(1,518,307	)
Payments paid to broker for futures contracts		(6,397,751	)
Increase in cash collateral held at broker for China A shares		(249	)
Payments due from broker		1,822,700
Decrease in prepaid expenses and other assets		20,074
Net cash provided from operating activities		177,396,337
Cash flows provided from (used for) financing activities
Decrease in revolving credit facility		(25,000,000	)
Repurchase of common stock		(26,090,207	)
Dividends paid to common shareholders		(108,533,229	)
Due to custodian		114,067
Net cash used for financing activities		(159,509,369	)
Effect of exchange rate on cash		(80,207,775	)
Net decrease in cash		(62,320,807	)
Cash at beginning of year		98,462,747
Cash at end of year	$	36,141,940

Reconciliation of Net Increase in Net Assets from Operations to Net Cash (Including Foreign Currency) Provided from (Used for) Operating Activities
Net decrease in total net assets resulting from operations	$	(156,452,839	)
Decrease in investments		95,689,370
Net realized gain on investment transactions		(9,407,200	)
Net realized foreign exchange losses		79,830,118
Net change in unrealized appreciation/depreciation on investments		14,869,680
Net change in unrealized foreign exchange gains/losses		140,478,054
Decrease in interest receivable		2,949,219
Decrease in receivable for investments sold		1,277,287
Increase in interest payable on revolving credit facility, senior secured notes and term loans		57,171
Increase in dividend payable to preferred shares		544,272
Net change in variation margin on future contracts		1,731,055
Net decrease in other assets		20,074
Decrease in payable for investments purchased		(274,557	)
Payments made to broker for interest rate swaps		(150,784	)
Decrease in payments due from broker		1,822,700
Payments received from broker for futures contracts		4,408,749
Increase in cash collateral at broker for China A shares		(249	)
Decrease in prepaid expenses in connection with revolving credit facility, senior secured notes, term loans and Series A Preferred Shares		174,164
Decrease in accrued expenses and other liabilities		(169,947	)
Total adjustments		333,849,176
Net cash provided from operating activities	$	177,396,337

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

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Financial Highlights


	For the Fiscal Years Ended October 31,
	2015			2014			2013			2012			2011
Per Share Operating Performance^(a):
Net asset value per common share, beginning of year		$6.58			$6.89			$7.78			$7.48			$7.27
Net investment income		0.28			0.28			0.30			0.36			0.39
Net realized and unrealized gains/(losses) on investments, interest rate swaps, futures contracts and foreign currency transactions		(0.88	)		(0.18	)		(0.77	)		0.36			0.24
Total from investment operations applicable to common shareholders		(0.60	)		0.10			(0.47	)		0.72			0.63
Distributions to common shareholders from:
Net investment income		(0.40	)		(0.42	)		(0.42	)		(0.42	)		(0.42	)
Tax return of capital		(0.02	)		–			–			–			–
Total distributions to shareholders		(0.42	)		(0.42	)		(0.42	)		(0.42	)		(0.42	)

Capital Share Transactions:
Offering cost on common stock		–			–			–			–			–
Impact of shelf offering		–			–			–			–			–
Impact due to open market repurchase policy (Note 7)		0.01			0.01			–			–			–
Total capital share transactions		0.01			0.01			–			–			–
Net asset value per common share, end of year		$5.57			$6.58			$6.89			$7.78			$7.48
Market value, end of year		$4.75			$5.88			$6.44			$7.90			$6.93

Total Investment Return Based on^(b):
Market value		(12.38%	)		(2.17%	)		(13.37%	)		20.47%			6.59%
Net asset value		(8.19%	)		2.33%			(5.89%	)^(c)		9.92%	^(c)		9.20%

Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data^(d):
Net assets applicable to common shareholders, end of year (000 omitted)		$1,427,649			$1,718,944			$1,842,470			$2,042,337			$1,951,739
Average net assets applicable to common shareholders (000 omitted)		$1,549,308			$1,771,852			$1,953,410			$1,965,038			$1,937,986
Net operating expenses		2.15%	^(e)		1.97%			1.50%			1.38%			1.49%
Net operating expenses, excluding interest expense and distributions to Series A Mandatory Redeemable Preferred Shares		1.14%	^(e)		1.09%			1.03%			1.01%			1.05%
Net investment income		4.65%			4.14%			4.07%			4.85%			5.30%
Portfolio turnover		45%			49%			42%			38%			72%
Leverage (senior securities) outstanding (000 omitted)		$525,000			$550,000			$550,000			$600,000			$600,000
Leverage (preferred stock) outstanding (000 omitted)		$50,000			$50,000			$50,000			$–			$–
Asset coverage ratio on long-term debt obligations at year end^(f)		381%			422%			444%			440%			425%
Asset coverage per $1,000 on long-term debt obligations at year end		$3,815			$4,216			$4,441			$4,404			$4,253
Asset coverage ratio on total leverage at year end^(g)		348%			386%			407%			–			–
Asset coverage per share on total leverage at year end		$3,483			$3,862			$4,071			$–			$–

Aberdeen Asia-Pacific Income Fund, Inc.

Financial Highlights (concluded)

(a)

Based on average shares outstanding.

(b)

Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains, and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value.

(c)

The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(d)

Ratios calculated on the basis of income, expenses and preferred share dividends applicable to both the common and preferred shares relative to the average net assets of common shareholders. For the fiscal years ended October 31, 2015, 2014, 2013, 2012 and 2011 the ratios of net investment income before preferred stock dividends to average net assets of common shareholders were 4.79%, 4.26%, 4.10%, 4.85% and 5.30%, respectively.

(e)

The expense ratio includes a one-time expense associated with the August 2011 shelf offering costs attributable to the registered but unsold shares expiring August 2015. Please see Note 5 of Notes to Financial Statements for further information.

(f)

Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings, including Series A Mandatory Redeemable Preferred Shares, for investment purposes by the amount of any long-term debt obligations, which includes the senior secured notes, revolving credit facility and term loans.

(g)

Amounts listed as “–” are $0 or round to $0.

See Notes to Financial Statements.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements

October 31, 2015

1. Organization

Aberdeen Asia-Pacific Income Fund, Inc. (the “Fund”) was incorporated in Maryland on March 14, 1986 as a closed-end, non-diversified management investment company. The Fund’s principal investment objective is to seek current income. The Fund may also achieve incidental capital appreciation. To achieve its investment objectives, the Fund normally invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in Asian debt securities, Australian debt securities and New Zealand debt securities. This 80% investment policy is a non-fundamental policy of the Fund and may be changed by the Fund’s Board of Directors (the “Board”) upon 60 days’ prior written notice to shareholders. There can be no assurance that the Fund will achieve its investment objectives. 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.

The Fund may invest up to 80% of its total assets, plus the amount of any borrowings for investment purposes, in “Asian debt securities,” which include: (1) debt securities of Asian Country (as defined below) issuers, including securities issued by Asian Country governmental entities, as well as by banks, companies and other entities which are located in Asian Countries, whether or not denominated in an Asian Country currency; (2) debt securities of other issuers denominated in, or linked to, the currency of an Asian Country, including securities issued by supranational issuers, such as The World Bank and derivative debt securities that replicate, or substitute for, the currency of an Asian Country; (3) debt securities issued by entities which, although not located in an Asian Country, derive at least 50% of their revenues from Asian Countries or have at least 50% of their assets located in Asian Countries; and (4) debt securities issued by a wholly-owned subsidiary of an entity located in an Asian Country, provided that the debt securities are guaranteed by the parent entity located in the Asian Country. With reference to items (3) and (4) above, Asian debt securities may be denominated in an Asian Country currency or in Australian, New Zealand or U.S. dollars. The maximum country exposure to any one Asian Country (other than Korea) is limited to 20% of the Fund’s total assets and the maximum currency exposure to any one Asian Country currency (other than Korea) is limited to 10% of the Fund’s total assets. The maximum country exposure for Korea is limited to 40% of the Fund’s total assets, and the maximum currency exposure for Korea is limited to 25% of the Fund’s total assets.

“Asian Countries” (each, an “Asian Country”) include Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, the Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, Sri Lanka, Kazakhstan and Mongolia, and such other countries on the

Asian continent approved for investment by the Board of Directors upon the recommendation of Aberdeen Asset Management Asia Limited, the Fund’s investment manager (“AAMAL” or the “Investment Manager”).

2. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars and the U.S. Dollar is used as both the functional and reporting currency. However, the Australian Dollar is the functional currency for U.S. federal tax purposes.

a. Security Valuation:

The Fund values its securities at current market value or fair value, consistent with regulatory requirements. “Fair Value” is defined in the Fund’s valuation and liquidity procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.

Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider approved by the Board. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size, but some trades occur in smaller “odd lot” size that transacted at lower prices than institutional round lot trades. If there are no current day bids, the security is valued at the previously applied bid. Short-term debt securities (such as commercial paper and U.S. treasury bills) having

a remaining maturity of 60 days or less are valued at amortized cost, if it represents the best approximation of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.

Derivatives are valued at fair value. Exchange traded derivatives are generally Level 1 investments and over-the-counter derivatives are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based on the actual

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Interest rate swaps are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows).

In the event that a security’s market quotations are not readily available or are deemed unreliable, the security is valued at fair value as determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Pricing Committee may be classified as Level 2 or 3 depending on the nature of the inputs.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1 measurements to valuations based upon unadjusted quoted prices in active markets for similar assets, Level 2 measurements to valuations based upon significant observable inputs, including adjusted quoted prices in active markets

for identical assets, and Level 3 measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The three-level hierarchy of inputs is summarized below:

Level 1 – quoted prices in active markets for similar investments;

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

A summary of standard inputs is listed below:


Security Type		Standard Inputs

Debt and other fixed-income securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, credit quality, yield, and maturity.

Forward foreign currency contracts		Forward exchange rate quotations.

Swap agreements		Market information pertaining to the underlying reference assets, i.e., credit spreads, credit event probabilities, fair values, forward rates, and volatility measures.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

The following is a summary of the inputs used as of October 31, 2015 in valuing the Fund’s investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:


Assets	Level 1			Level 2			Level 3		Total
Fixed Income Investments
Corporate Bonds	$	–		$	921,315,115		$	8,580,000	$	929,895,115
Government Bonds		–			946,071,353			–		946,071,353
Total Fixed Income Investments		–			1,867,386,468			8,580,000		1,875,966,468
Short-Term Investment		–			76,319,000			–		76,319,000
Total Investments	$	–		$	1,943,705,468		$	8,580,000	$	1,952,285,468
Other Financial Instruments
Futures Contracts	$	27,013		$	–		$	–	$	27,013
Forward Foreign Currency Exchange Contracts		–			5,259,946			–		5,259,946
Total Other Financial Instruments	$	27,013		$	5,259,946		$	–		5,286,959
Total Assets	$	27,013		$	1,948,965,414		$	8,580,000		1,957,572,427
Liabilities
Other Financial Instruments
Futures Contracts	$	(249,234	)	$	–		$	–	$	(249,234	)
Forward Foreign Currency Exchange Contracts		–			(4,664,683	)		–		(4,664,683	)
Interest Rate Swap Agreements		–			(722,503	)		–		(722,503	)
Total Liabilities	$	(249,234	)	$	(5,387,186	)	$	–	$	(5,636,420	)

Amounts listed as “–” are $0 or round to $0.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:


Investments in Securities	Balance as of October 31, 2014		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases		Net Sales		Net Transfers in to Level 3		Net Transfers out of Level 3		Balance as of October 31, 2015
CORPORATE BONDS
China	$	–	$	–	$	–	$	–	$	8,580,000	$	–	$	–	$	–	$	8,580,000
TOTAL	$	–	$	–	$	–	$	–	$	8,580,000	$	–	$	–	$	–	$	8,580,000

Change in unrealized appreciation/(depreciation) relating to investments still held at October 31, 2015 is $0.

For movements between the Levels within the fair value hierarchy, the Fund has adopted a policy of recognizing transfers at the end of each period. During the fiscal year ended October 31, 2015, there were no transfers between Levels 1, 2 or 3. For the fiscal year ended October 31, 2015, there were no significant changes to the fair valuation methodologies.

b. Repurchase Agreements:

The Fund may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is the Fund’s policy that its custodian/counterparty segregate the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates. To the extent that any repurchase transaction exceeds one business day, the collateral is valued on a daily basis to determine its adequacy. Under the Master Repurchase Agreement, if the counterparty defaults and the value of

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

the collateral declines, or if bankruptcy proceedings are commenced with respect to the counterparty of the repurchase agreement, realization of the collateral by the Fund may be delayed or limited. The Fund held a repurchase agreement of $76,319,000 as of October 31, 2015. The value of the related collateral exceeded the value of the repurchase agreement at October 31, 2015. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on the Fund’s repurchase agreement, see the Portfolio of Investments.

c. Restricted Securities:

Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the “1933 Act”). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.

d. Foreign Currency Translation:

Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the “Valuation Time,” as provided by an independent pricing service approved by the Board. The Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time).

Foreign currency amounts are translated into U.S. Dollars on the following basis:

(i)

market value of investment securities, other assets and liabilities – at the current daily rates of exchange at the Valuation Time; and

(ii)

purchases and sales of investment securities, income and expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Fund isolates that portion of the results of operations arising from changes in the foreign exchange rates due to the fluctuations in the market prices of the securities held at the end of the reporting period. 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 reporting period.

Net exchange gain/(loss) is realized from sales and maturities of portfolio securities, sales of foreign currencies, settlement of securities transactions, dividends, interest and foreign withholding taxes recorded on the Fund’s books. Net unrealized foreign exchange appreciation/(depreciation) includes changes in the value of portfolio securities and other assets and liabilities arising as a result of changes in the exchange rate. The net realized and unrealized foreign exchange gain/(loss) shown in the composition of net assets represents foreign exchange gain/(loss) 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. Generally, when the U.S. Dollar rises in value against foreign currency, the Fund’s investments denominated in that currency will lose value because its currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S. Dollar falls in relative value.

e. Derivative Financial Instruments:

The Fund is authorized to use derivatives to manage currency, interest rate and credit risk and as a substitute for physical securities. Losses may arise due to changes in the value of the contract or 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.

Forward Foreign Currency Exchange Contracts:

A forward foreign currency exchange contract (“forward 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. Forward contracts are used to manage the Fund’s currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to the benchmark. The use of forward contracts allows the separation of decision-making between markets and their currencies.

The forward contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. Forward contracts’ prices are received daily from an independent pricing provider. When the forward 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

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

time it was closed. These realized and unrealized gains and losses are reported on the Statement of Operations. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or from unanticipated movements in exchange rates. During the fiscal year ended October 31, 2015, the Fund used forward contracts to hedge and efficiently manage Australian and certain Asian currency exposure.

While the Fund may enter into forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while the Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for the Fund than if it had not engaged in any such transactions. Moreover, there may be imperfect correlation between the Fund’s portfolio holdings or securities quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent the Fund from achieving a complete hedge, which will expose the Fund to the risk of foreign exchange loss.

Forward contracts are subject to the risk that the counterparties to such contracts may default on their obligations. Since a forward foreign currency exchange contract is not guaranteed by an exchange or clearing house, a default on the contract would deprive the Fund of unrealized profits, transaction costs or the benefits of a currency hedge or force the Fund to cover its purchase or sale commitments, if any, at the market price at the time of the default.

Futures Contracts:

The Fund may invest in financial futures contracts (“futures contracts”) for the purpose of hedging its existing portfolio securities, or securities that the Fund intends to purchase, against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes.

Upon entering into a futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This payment is known as initial margin. Subsequent payments, known as “variation margin,” are calculated each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. An unrealized gain/(loss) equal to the variation margin is recognized on a daily basis. When the contract expires or is closed, the gain/(loss) is realized and is presented in the Statement of Operations as a net realized gain/(loss) on futures contracts. Futures contracts are valued daily at their last quoted sale price on the exchange on which they are traded.

A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. During the fiscal year ended October 31, 2015, the Fund used U.S. Treasury futures to efficiently manage U.S. interest rate exposure and hedge the U.S. interest rate risk.

There are significant risks associated with the Fund’s use of futures contracts, including the following: (1) the success of a hedging strategy may depend on the ability of the Fund’s investment adviser and/or sub-adviser to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the movement in the price of futures contracts, interest rates and the value/market value of the securities held by the Fund; (3) there may not be a liquid secondary market for a futures contract; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts. In addition, should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss.

Swaps:

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset or notional principal amount. The Fund will enter into swaps only on a net basis, which means that the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the difference between the two payments. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of a counterparty is generally limited to the net interest payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap contract in evaluating potential credit risk. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying reference asset or index. The Fund records unrealized gains/(losses) on a daily basis representing the value and the current net receivable or payable relating to open swap contracts. Net amounts received or paid on the swap contract are recorded as realized gains/(losses). Fluctuations in the value of swap contracts are recorded for financial statement purposes as unrealized appreciation or depreciation of swap contracts. Realized gains/(losses) from terminated swaps are

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

included in net realized gains/(losses) on swap contracts transactions. During the fiscal year ended October 31, 2015, the Fund used interest rate swaps to hedge the interest rate risk on the Fund’s Revolving Credit Facility (as defined below).

The Fund is a party to International Swap Dealers Association, Inc. Master Agreements (“ISDA Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain over-the-counter derivative and foreign exchange contracts, entered into by the Fund and the counterparty. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination.

The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable ISDA Master Agreement.

Certain swaps, including some interest rate swaps, when entered into, must be cleared pursuant to U.S. Commodity Futures Trading Commission (“CFTC”) regulations. As a result, these swaps can no longer be traded over-the-counter and are subject to various regulations and rules of the CFTC.

Summary of Derivative Instruments:

The Fund may use derivatives for various purposes as noted above. The following is a summary of the fair value of Derivative Instruments, not accounted for as hedging instruments, as of October 31, 2015:

Asset Derivatives

Liability Derivatives

Year Ended October 31, 2015

Derivatives not accounted for
as hedging instruments
and risk exposure

Statement of Assets
and Liabilities Location

Fair Value

Statement of Assets
and Liabilities Location

Fair Value

Interest rate swaps
(interest rate risk)

Unrealized appreciation on interest rate swaps

–

Unrealized depreciation on interest rate swaps

722,503

Forward foreign exchange contracts (foreign exchange risk)

Unrealized appreciation on forward currency exchange contracts

5,259,946

Unrealized depreciation on forward currency exchange contracts

4,664,683

Futures contracts (interest rate risk)*

Unrealized appreciation on futures contracts

27,013

Unrealized depreciation on futures contracts

249,234

Total

5,286,959

5,636,420

Includes cumulative appreciation/(depreciation) on futures contracts as reported in the Portfolio of Investments.

Amounts listed as “–” are $0 or round to $0.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

The Fund has transactions that may be subject to enforceable master netting agreements. A reconciliation of the gross amounts on the Statement of Assets and Liabilities as of October 31, 2015 to the net amounts by broker and derivative type, including any collateral received or pledged, is included in the following tables:


			Gross Amounts Not Offset in Statement of Assets & Liabilities
	Gross Amounts of Assets									Gross Amounts of Liabilities
Description	Financial Position		Financial Instruments			Collateral Received (1)		Net Amount (3)		Financial Position		Financial Instruments			Collateral Pledged (1)			Net Amount (3)
Forward foreign currency (2)
BNP Paribas	$	2,473	$	–		$	–	$	2,473	$	–	$	–		$	–		$	–
Citigroup		–		–			–		–		124,536		–			–			124,536
Credit Suisse		4,242,347		(446,627	)		–		3,795,720		446,627		(446,627	)		–			–
Goldman Sachs		34,480		(34,480	)		–		–		338,905		(34,480	)		–			304,425
Royal Bank of Canada		115,345		–			–		115,345		–		–			–			–
Standard Chartered Bank		483,394		(483,394	)		–		–		1,738,995		(483,394	)		–			1,255,601
State Street		381,907		(381,907	)		–		–		2,015,620		(381,907	)		–			1,633,713
Interest rate swaps (2)
Barclays Bank	$	–	$	–		$	–	$	–	$	722,503	$	–		$	(722,503	)	$	–

In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

Includes financial instruments (swaps and forwards) which are not subject to a master netting arrangement across funds, or other another similar arrangement.

Net amounts represent the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master netting agreement with the same legal entity.

The Effect of Derivative Instruments on the Statement of Operations

for the fiscal year ended October 31, 2015:


Derivatives not accounted for as hedging instruments under Statement 133(a)	Location of Gain or (Loss) on Derivatives	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation/ Depreciation on Derivatives
	Realized/Unrealized Gain/(Loss) from Investments, Interest Rate Swaps, Futures Contracts and Foreign Currencies

Interest rate swaps (interest rate risk)		$	(1,518,307	)	$	150,784

Forward foreign exchange contracts (foreign exchange risk)			11,034,988			(3,558,057	)

Futures contracts (interest rate risk)			(10,806,500	)		(1,731,055	)
Total		$	(1,289,819	)	$	(5,138,328	)

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

Information about derivatives reflected as of the date of this report is generally indicative of the type of activity for the fiscal year ended October 31, 2015. The table below summarizes the weighted average values of derivatives holdings for the Fund during the fiscal year ended October 31, 2015.


Forward foreign exchange contracts (Average Notional Value)	Futures contracts (Average Notional Value)			Swap contracts (Average Notional Value)
$639,847,570	$	(79,075,000	)	$	143,750,000

f. Security Transactions, Investment Income and Expenses:

Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Interest income and expenses are 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.

g. Distributions:

The Fund has a managed distribution policy to pay distributions from net investment income supplemented by net realized foreign exchange gains, net realized short-term capital gains and return of capital distributions, if necessary, on a monthly basis. The managed distribution policy is subject to regular review by the Board. The Fund will also declare and pay distributions at least annually from net realized gains on investment transactions and net realized foreign exchange gains, if any. Dividends and distributions to shareholders are recorded on the ex-dividend date.

Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign currencies, loss deferrals and recognition of market discount and premium.

Distributions to Series A Mandatory Redeemable Preferred Shares (the “Series A MRPS”) shareholders are accrued daily and paid quarterly based on an annual rate of 4.125%. The Fund may not pay distributions to its preferred shareholders unless (i) the pro forma asset coverage ratios for the Series A MRPS, as calculated in accordance with the Fitch Ratings total and net overcollateralization tests per the ‘AA’ rating guidelines outlined in Fitch Rating’s closed-end fund criteria, is in excess of 100%, and (ii) the Fund’s asset coverage ratios for the Series A MRPS, as calculated in accordance with the Investment Company Act of 1940, as amended (“1940 Act”), is in excess of 225%. The character of distributions to Series A MRPS

shareholders made during the fiscal year may differ from their ultimate characterization for federal income tax purposes. For tax purposes, the Fund’s distributions to Series A MRPS shareholders for the fiscal year ended October 31, 2015 were 100% net investment income.

h. Federal Income Taxes:

For U.S. federal income purposes the Fund is comprised of a separately identifiable unit called Qualified Business Unit (“QBU”) (see the Internal Revenue Code of 1986, as amended (“IRC”) section 987). The Fund has operated with a QBU for U.S. federal income purposes since 1990. The home office of the Fund is designated as the United States and of the QBU is Australia with a functional currency of Australian dollar. The securities held within the Fund reside within either the QBU or the home office depending on certain factors including geographic region. As an example, New Zealand and Indonesian securities reside within the Australian QBU. When sold, Australian dollar denominated securities within the Australian QBU generate capital gain/loss (which are translated for U.S. federal income tax purposes into U.S. dollars based on the weighted average exchange rate for the period) but not currency gain/loss. When a New Zealand security is sold within the Australian QBU, the sale generates capital gain/loss as well as currency gain/loss based on the currency exchange between the New Zealand dollar and the Australian dollar.

Currency gain/loss related to currency exchange between the U.S. dollar and the QBU functional currency is generated when money is transferred from a QBU to the home office. The currency gain/loss would result from the difference between the current exchange rate and the fiscal year to date average exchange rate until which profits are utilized and the pooled U.S. dollar basis in the QBU (which is generally computed based on the currency exchange rates from when money was transferred into such QBU and from gain/losses generated within such QBU based on the weighted average exchange rates for the periods such gain/loss was recognized.) Based on the QBU structure, there may be sizable differences in the currency gain/loss recognized for U.S. federal income tax purposes and what is reported within the financial statements under GAAP. As of the Fund’s fiscal year-end, the calculation of the composition of distributions to shareholders is finalized and reported in the Fund’s annual report to shareholders.

The Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the IRC, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all federal income taxes. Therefore, no federal income tax provision is required. Since tax authorities can examine previously filed tax returns, the Fund’s U.S.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31 are subject to such review.

i. Foreign Withholding Tax:

Dividend and interest income from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes. In addition, the Fund may be subject to capital gains tax in certain countries in which it invests. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Fund accrues such taxes when the related income is earned.

In addition, when the Fund sells securities within certain countries in which it invests, the capital gains realized may be subject to tax. Based on these market requirements and as required under GAAP, the Fund accrues deferred capital gains tax on securities currently held that have unrealized appreciation within these countries. The amount of deferred capital gains tax accrued is reported on the Statement of Operations as part of the Net Change in Unrealized Appreciation/Depreciation on Investments.

j. Cash Flow Information:

The Fund invests in securities and distributes dividends from net investment income and net realized gains on investment and currency transactions which are paid in cash or are reinvested at the discretion of shareholders. These activities are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments is presented in the Statement of Cash Flows. Cash includes domestic and foreign currency but does not include cash at brokers in segregated accounts for financial futures contracts because it is designated as collateral.

3. Agreements and Transactions with Affiliates

a. Investment Manager, Investment Adviser, and Investment Sub-Adviser:

AAMAL serves as investment manager to the Fund, pursuant to a management agreement. Aberdeen Asset Management Limited (the “Investment Adviser”) serves as the investment adviser and Aberdeen Asset Managers Limited (“AAML” or the “Sub-Adviser”) serves as the sub-adviser, pursuant to an advisory agreement and a sub-advisory agreement, respectively. The Investment Manager, the Investment Adviser and the Sub-Adviser are wholly-owned subsidiaries of Aberdeen Asset Management PLC.

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, including the selection of and the placement of orders with brokers and dealers to execute portfolio transactions on behalf of the Fund. The Sub-Adviser manages the portion of the Fund’s assets that the Investment Manager allocates to it.

The management agreement provides the Investment Manager with a fee, payable monthly by the Fund, at the following annual rates: 0.65% of the Fund’s average weekly Managed Assets up to $200 million, 0.60% of Managed Assets between $200 million and $500 million, 0.55% of Managed Assets between $500 million and $900 million, 0.50% of Managed Assets between $900 million and $1.75 billion and 0.45% of Managed Assets in excess of $1.75 billion. Managed Assets is defined in the management agreement to mean total assets of the Fund, including any form of investment leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred stock or other similar preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the Fund’s investment objectives and policies, and/or (iv) any other means.

The Investment Manager pays fees to the Investment Adviser for its services rendered. The Investment Manager paid $1,894,578 to the Investment Adviser, with respect to the Fund, during the fiscal year ended October 31, 2015. As compensation for its services under the sub-advisory agreement, the Sub-Adviser receives an annual fee paid by the Investment Manager in the amount of $108,333, to be paid in monthly increments.

b. Fund Administration:

Aberdeen Asset Management Inc. (“AAMI”), an affiliate of the Investment Manager, Investment Adviser and Sub-Adviser, is the Fund’s Administrator, pursuant to an agreement under which AAMI receives a fee, payable monthly by the Fund, at an annual fee rate of 0.125% of the Fund’s average weekly Managed Assets up to $1 billion, 0.10% of the Fund’s average weekly Managed Assets between $1 billion and $2 billion, and 0.075% of the Fund’s average weekly Managed Assets in excess of $2 billion. For the fiscal year ended October 31, 2015, AAMI earned $2,357,523 from the Fund for administration fees.

c. Investor Relations:

Under the terms of an Investor Relations Services Agreement, AAMI serves as the Fund’s investor relations services provider.

Pursuant to the terms of the Investor Relations Services Agreement, AAMI provides, among other things, objective and timely information to shareholders based on publicly-available information; provides information efficiently through the use of technology while offering shareholders immediate access to knowledgeable investor relations representatives; develops and maintains effective communications

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

with investment professionals from a wide variety of firms; creates and maintains investor relations communication materials such as fund manager interviews, films and webcasts, publishes white papers, magazine articles and other relevant materials discussing the Fund’s investment results, portfolio positioning and outlook; develops and maintains effective communications with large institutional shareholders; responds to specific shareholder questions; and reports activities and results to the Board and management detailing insight into general shareholder sentiment.

Effective January 1, 2015, a portion of these fees are capped at an annual rate of 0.05% of the Fund’s average net assets. For the fiscal year ended October 31, 2015, the Fund paid fees of approximately $530,296 for investor relations services. For the fiscal year ended October 31, 2015 AAMI did not waive any investor relations fees because the Fund did not reach the capped amount. Investor relations fees and expenses in the Statement of Operations include certain out-of-pocket expenses.

4. Investment Transactions

Purchases and sales of investment securities (excluding short-term securities) for the fiscal year ended October 31, 2015, were $902,382,116 and $932,407,125, respectively.

5. Capital

The authorized capital of the Fund is 400 million shares of $0.01 par value common stock. During the fiscal year ended October 31, 2015, the Fund repurchased 4,991,465 shares pursuant to its Open Market Repurchase Program, see Note 6 for further information. As of October 31, 2015, there were 256,309,138 shares of common stock issued and outstanding.

In August 2012, the Fund filed a “shelf” registration statement with the SEC, which permitted the Fund to issue up to $375 million in shares of common stock through one or more public offerings, including at-the-market offerings (“ATM offerings”), provided that the registration statement was updated and certain performance conditions were met over a three year period. Shares would be offered through ATM offerings only when market conditions were considered favorable. Such shares would only be issued when the premium to net asset value was greater than the costs associated with the transaction. Any proceeds raised were used for investment purposes. For the fiscal year ended October 31, 2015, there were no shares sold through ATM or other offerings. Offering costs were previously capitalized as a prepaid expense. For the fiscal years ended October 31, 2015 and October 31, 2014, no offering costs were charged to paid-in capital. Upon expiration of this shelf registration statement in August 2015, prepaid Offering Costs with this

registration statement were expensed to the Fund. These costs are noted on the Statements of Operations.

6. Open Market Repurchase Program

On March 1, 2001, the Board approved a stock repurchase program. The Board amended the program on December 12, 2007. The stock repurchase program allows the Fund to repurchase up to 10% of its outstanding common stock in the open market during any 12-month period. The Fund reports repurchase activity on the Fund’s website on a monthly basis.

For the fiscal year ended October 31, 2015 and fiscal year ended October 31, 2014, the Fund repurchased 4,991,465 and 6,107,325 shares, respectively, through this program.

7. Preferred Shares

At October 31, 2015, the Fund had 2,000,000 shares of Series A MRPS outstanding with an aggregate liquidation preference of $50,000,000 ($25.00 per share). The following table shows the mandatory redemption date, annual fixed rate, aggregate liquidation preference and estimated fair value of the Series A MRPS at October 31, 2015.


Mandatory Redemption Date		Annual Fixed Rate			Aggregate Liquidation Preference		Estimated Fair Value
	June 27, 2023		4.125	%	$	50,000,000	$	49,404,423

Holders of the Series A MRPS are entitled to receive quarterly cumulative cash dividend payments on the first business day following each calendar quarter at an annual fixed rate of 4.125% until maturity. The Series A MRPS were issued in private placement offerings to institutional investors and are not listed on any exchange or automated quotation system. Distributions are accrued daily and paid quarterly and are presented in the Statement of Assets and Liabilities as a dividend payable to preferred shareholders. For the fiscal year ended October 31, 2015, the Fund paid $2,091,147 in distributions to preferred shareholders.

The Series A MRPS rank senior to all of the Fund’s outstanding shares of common stock and on a parity with shares of any other series of preferred stock as to the payment of dividends to which the shares are entitled and the distribution of assets upon dissolution, liquidation or winding up of the affairs of the Fund.

The estimated fair value of Series A MRPS was calculated, for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, plus the spread between the U.S. insurance and financial debt rate and the U.S. Treasury rate plus a market spread for the issuance of preferred shares.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

The Series A MRPS are redeemable in certain circumstances at the option of the Fund. The Series A MRPS are also subject to mandatory redemption, unless otherwise prohibited by the 1940 Act, if the Fund fails to maintain (1) asset coverage, as determined in accordance with Section 18(h) of the 1940 Act, of at least 225%, with respect to all outstanding preferred stock, as of the last day of any month or (2) eligible assets with an aggregate agency discounted value at least equal to the basic maintenance amount as provided in the Fund’s rating agency guidelines. As of October 31, 2015, the Fund was in compliance with the asset coverage and basic maintenance requirements of the Series A MRPS.

Except for matters which do not require the vote of the holders of the Series A MRPS under the 1940 Act and except as otherwise provided in the Fund’s Charter or Bylaws, or as otherwise required by applicable law, holders of the Series A MRPS have one vote per share and generally vote together with holders of common stock as a single class on all matters submitted to the Fund’s stockholders. The holders of the Series A MRPS, voting separately as a single class, have the right to elect at least two directors of the Fund.

8. Senior Secured Notes

At October 31, 2015, the Fund had $200,000,000 in aggregate principal amount of senior secured notes rated ‘AAA’ by Fitch Ratings outstanding ($100,000,000 in 3.05% Series A Senior Secured Notes due June 12, 2020 and $100,000,000 in 3.69% Series B Senior Secured Notes due June 12, 2023) (collectively, the “Notes”). The Notes are secured obligations of the Fund and, upon liquidation, dissolution or winding up of the Fund, will rank senior to all unsecured and unsubordinated indebtedness and senior to any common or preferred stock pari passu in priority and security with all other secured indebtedness. Holders of the Notes are entitled to receive cash interest payments semi-annually until maturity. The Series A Notes and the Series B Notes accrue interest at annual fixed rates of 3.05% and 3.69%, respectively.

The Notes were issued in private placement offerings to institutional investors and are not listed on any exchange or automated quotation system.

The Notes may be prepaid in certain limited circumstances at the option of the Fund. The Notes are also subject to optional prepayment to the extent needed to satisfy certain requirements if the Fund fails to meet an asset coverage ratio required by the terms of the Notes and is not able to cure the coverage deficiency by the applicable deadline.

The estimated fair value of each series of fixed-rate Notes was calculated, for disclosure purposes, by discounting future cash flows

by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, plus either 1) the spread between the interest rate on recently issued debt and the U.S. Treasury rate with a similar maturity date or 2) if there has not been a recent debt issuance, the spread between the AAA corporate finance debt rate and the U.S. Treasury rate with an equivalent maturity date. The following table shows the maturity date, interest rate, notional/carrying amount and estimated fair value for each series of Notes outstanding at October 31, 2015.


Series	Maturity Date		Interest Rate		Notional/ Carrying Amount		Estimated Fair Value
Series A		June 12, 2020		3.05%	$	100,000,000	$	100,720,262
Series B		June 12, 2023		3.69%	$	100,000,000	$	101,244,716

9. Credit Facility

On April 9, 2014, the Fund renewed its credit agreement providing for a $150,000,000 senior secured revolving credit loan facility (the “Revolving Credit Facility”) with a syndicate of banks with Bank of America Merrill Lynch, N.A., acting as administrative agent. On June 12, 2013 the Fund entered into a term loan agreement (the “Term Loan Agreement”) providing for $200,000,000 of senior secured term loans (the “Term Loan Facility”) from Bank of America, N.A. On August 13, 2015, the Fund paid down $25,000,000 of the Revolving Credit Facility. At October 31, 2015 the Fund had $125,000,000 outstanding under the Revolving Credit Facility and $200,000,000 outstanding under the Term Loan Facility. Under the terms of the Revolving Credit Facility and the Term Loan Agreement and applicable regulations, the Fund is required to maintain certain asset coverage ratios for the amount of its outstanding borrowings.

For the fiscal year ended October 31, 2015, the average interest rate on the Revolving Credit Facility was 1.20% and the average balance of the Revolving Credit Facility was $144,589,041. Pursuant to the Term Loan Agreement, the Term Loan Facility consists of two separate facilities: $100,000,000 term loan facility which accrues interest at 2.80% per annum (the “Term A Facility”) and a $100,000,000 term loan facility which accrues interest at 2.16% per annum (the “Term B Facility”). For the fiscal year ended October 31, 2015, the average interest rate on the Term Loan Facility was 2.48% and the average balance of the Term Loan Facility was $200,000,000. The interest expense is accrued on a daily basis and is payable on a monthly basis or on the last date of the respective LIBOR period, as applicable, for the Revolving Credit Facility, and payable on the last business day of each March, June, September and December and the maturity date for the Term Loan Facility.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

The estimated fair value of each Term Loan Facility was calculated, for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, the spread between the U.S. insurance and financial debt rate and the U.S. Treasury rate. The following table shows the maturity date, interest rate, notional/carrying amount and estimated fair value for each Term Loan Facility outstanding as of October 31, 2015.


Series	Maturity Date			Interest Rate		Notional/ Carrying Amount		Estimated Fair Value
Term A Facility		June 12, 2018			2.80%	$	100,000,000	$	100,486,353
Term B Facility		June 12, 2016	*		2.16%	$	100,000,000	$	100,171,958

Subsequent to the end of the reporting period, the maturity of Term Loan B was extended to December 14, 2019.

The Revolving Credit Facility has a term of 3-years and is not a perpetual form of leverage; there can be no assurance that the Revolving Credit Facility will be available for renewal on acceptable terms, if at all. The Term A Facility and the Term B Facility have 5- and 3-year terms, respectively. Bank loan fees and expenses included in the Statement of Operations include fees for the renewal of the Revolving Credit Facility as well as commitment fees for any portion of the loan facility not drawn upon at any time during the period.

The estimated fair value of the Revolving Credit Facility was calculated, for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, the spread between the U.S. insurance and financial debt rate and the U.S. Treasury rate. The following table shows the maturity date, interest rate, notional/carrying amount and estimated fair value outstanding as of October 31, 2015.


Maturity Date	Interest Rate		Notional/ Carrying Amount		Estimated Fair Value
April 9, 2017		1.22%	$	125,000,000	$	123,068,143

10. Risks of Leveraged Capital Structure

The amounts borrowed under the Revolving Credit Facility, the Term Loan Facility and the Notes and other funds obtained through various forms of leverage, including the Series A MRPS, may be invested to return higher rates than the rates pursuant to which interests or dividends are paid under such forms of leverage. However, the cost of leverage could exceed the income earned by the Fund on the proceeds of such leverage. To the extent that the Fund is unable to invest the proceeds from the use of leverage in assets which pay interest at a rate which exceeds the rate paid on the leverage, the yield on the Fund’s common stock will decrease. In

addition, in the event of a general market decline in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage.

The Fund’s leveraged capital structure creates special risks not associated with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the Revolving Credit Facility, the Term Loan Facility and the Notes may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. The Fund is limited in its ability to declare dividends or other distributions under the terms of the various forms of leverage. In the event of an event of default under either the Revolving Credit Facility or Term Loan Facility, the lenders have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lenders may be able to control the liquidation as well. In the event of an event of default under the Note Purchase Agreement, the holders of the Notes have the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund).

Each of the Revolving Credit Facility Agreement, the Term Loan Agreement, the Note Purchase Agreement or the Securities Purchase Agreement relating to the Series A MRPS includes usual and customary covenants for the applicable type of transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede the Investment Manager, Investment Adviser, or Sub-Adviser from fully managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of any and/or all of the forms of leverage. As of October 31, 2015, the Fund was in compliance with all covenants under the agreements relating to the various forms of leverage.

During the fiscal year ended October 31, 2015, the Fund incurred fees of approximately $681,982 for the Revolving Credit Facility, Term Loan Facility and Notes.

11. Portfolio Investment Risks

a. Credit and Market Risk:

A debt instrument’s price depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory,

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

geopolitical, or other conditions. Funds that invest in high yield and emerging market instruments are subject to certain additional credit and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading.

b. Interest Rate Risk:

The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, the Fund’s fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk.

The Fund may be subject to a greater risk of rising interest rates due to current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

c. Risks Associated with Foreign Securities and Currencies:

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, and political or social instability or diplomatic developments, which could adversely affect investments in those countries.

Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive

to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.

d. Focus Risk:

The Fund may have elements of risk not typically associated with investments in the United States due to focused investments in a limited number of countries or regions subject to foreign securities or currencies risks. Such focused investments may subject the Fund to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.

e. Risks Associated with Mortgage-backed Securities:

The value of mortgage-backed securities can fall if the owners of the underlying mortgages default or pay off their mortgages sooner than expected, which could happen when interest rates fall.

12. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund, and therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

13. Tax Information

The U.S. federal income tax basis of the Fund’s investments and the net unrealized appreciation as of October 31, 2015 were as follows:

Tax Basis of
Investments

Appreciation

Depreciation

Net

Unrealized

Appreciation

$1,914,399,324

61,633,606

(23,747,462

)

37,886,144

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (continued)

October 31, 2015

The tax character of distributions paid during the fiscal years ended October 31, 2015 and October 31, 2014 was as follows:


	October 31, 2015		October 31, 2014
Distributions paid from:
Ordinary Income	$	102,766,980	$	111,091,699
Net long-term capital gains		–		–
Tax return of capital		5,766,249		–
Total tax character of distributions	$	108,533,229	$	111,091,699

As of October 31, 2015, the components of accumulated earnings on a tax basis were as follows:


Undistributed ordinary income – net	$	–
Undistributed long-term capital gains – net		–
Total undistributed earnings	$	–
Capital loss carryforward		(75,826,843	)*
Other currency gains		175,532,091
Other temporary differences		(5,475,201	)
Unrealized appreciation/(depreciation) – securities		37,886,144	**
Unrealized appreciation/(depreciation) – currency		(242,716,347	)**
Total accumulated earnings/(losses) – net	$	(110,600,156	)

On October 31, 2015, the Fund has a net capital loss carryforward of $75,826,843 which will be available to offset like amounts of any future taxable gains. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short term as under previous law. Capital loss carryforwards expire as follows:


Amounts		Expires
$13,960,591		2016 (Short-Term)
$17,991,164		2017 (Short-Term)
$21,193,794		2019 (Short-Term)
$22,681,294		Unlimited (Short-Term)

The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable to the difference between book and tax amortization methods for premiums and discounts on fixed income securities, differing treatments for foreign currencies, the tax deferral of wash sales and straddles, the realization of unrealized gains on certain futures and forward contracts, and other timing differences.

Aberdeen Asia-Pacific Income Fund, Inc.

Notes to Financial Statements (concluded)

October 31, 2015

GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, the table below details the necessary reclassifications, which are a result of permanent differences primarily attributable to foreign currency losses, reclassification of capital gains, reclassification of swaps and reclassification of amortization. These reclassifications have no effect on net assets or net asset values per share.

Paid-in capital

Accumulated
net investment
income

Accumulated
net realized
loss

Accumulated
net realized
loss on

currency

)

28,519,720

(4,375,476

)

(24,144,243

)

14. Subsequent Events

Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures or adjustments were required to the financial statements as of October 31, 2015, other than those listed below.

On November 10, 2015 and December 9, 2015, the Fund announced that it will pay on November 30, 2015 and January 12, 2016 a distribution of $0.035 per share to all shareholders of record as of November 23, 2015 and December 31, 2015, respectively.

On September 8, 2015, the Board of Directors approved an Amended and Restated Sub-Advisory Agreement between the Fund’s Investment Manager and the Fund’s Sub-Adviser, revising the schedule of fees that are paid from the Investment Manager to the Sub-Adviser (the “Fee Revision”). The Fee Revision provides that for any month in which the Sub-Adviser is managing Fund assets, it receives a monthly fee of 1/12 of $100,000. Previously, the Sub-Adviser was paid an annual total fee of $100,000, paid in monthly increments, irrespective of whether it managed Fund assets during the month. The Fee Revision only impacts the fees received by the Sub-Adviser from the Investment Manager, and does not impact the fee received by the Investment Manager from the Fund or the overall management fees paid by the Fund. The Amended and Restated Sub-Advisory Agreement became effective November 1, 2015.

On December 14, 2015, the Fund amended the Term Loan Agreement pertaining to the Term B Facility to extend the facility’s maturity date. The Term B Facility had a three-year term expiring June 12, 2016, which was amended to be a four-year term expiring December 14, 2019. The interest rate changed from 2.16% per annum to 2.38% per annum.

Aberdeen Asia-Pacific Income Fund, Inc.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of

Aberdeen Asia-Pacific Income Fund, Inc.:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Aberdeen Asia-Pacific Income Fund, Inc. (the “Fund”), as of October 31, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, the statements of cash flows for the year ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits 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 and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2015, by

correspondence with custodians and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of October 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, its cash flows for the year then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

LOGO

Philadelphia, Pennsylvania

December 29, 2015

Aberdeen Asia-Pacific Income Fund, Inc.

Federal Tax Information: Dividends and Distributions (unaudited)

The following information is provided with respect to the distributions paid by the Aberdeen Asia-Pacific Income Fund, Inc. during the fiscal year ended October 31, 2015:

Common Shareholders


Payable Date	Foreign Taxes Paid†*		Foreign Source Income**
11/28/14-1/12/15		0.857%		66.91%
1/30/15-10/28/15		1.991%		61.71%

†

Expressed as a percentage of the distributions paid.

The foreign taxes paid represent taxes incurred by the Fund on interest received from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid.

Expressed as a percentage of ordinary distributions paid grossed-up for foreign taxes paid.

Supplemental Information (unaudited)

Board of Directors’ Consideration of Advisory and Sub-Advisory Agreements

At an in-person meeting of the Board of Directors (the “Board”) of Aberdeen Asia-Pacific Fund, Inc. (“FAX” or the “Fund”) held on September 8, 2015, the Board, including a majority of the Directors who are not considered to be “interested persons” of the Fund (the “Independent Directors”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an annual period the continuation of the Fund’s management agreement with Aberdeen Asset Management Asia Limited (the “Investment Manager”), the investment advisory agreement among the Fund, the Investment Manager and Aberdeen Asset Management Limited (the “Investment Adviser”), and the investment sub-advisory agreement among the Fund, the Investment Manager and Aberdeen Asset Managers Limited (the “Sub-Adviser”). Collectively, the Investment Manager, the Investment Adviser and the Sub-Adviser are referred to herein as the “Advisers” and the aforementioned agreements with the Advisers are referred to as the “Advisory Agreements.” The Investment Adviser and the Sub-Adviser are affiliates of the Investment Manager.

In considering whether to approve the Fund’s Advisory Agreements, the Board reviews a variety of information provided by the Advisers relating to FAX, the Advisory Agreements and the Advisers, including comparative performance, fee and expense information and other information regarding the nature, extent and quality of services provided by the Advisers under their respective Advisory Agreements. The materials provided to the Board generally include, among other items: (i) information on the investment performance of the Fund and the performance of peer groups of funds and the Fund’s

performance benchmarks; (ii) information on the Fund’s advisory fees and other expenses, including information comparing the Fund’s expenses to those of a peer group of funds and information about any applicable expense limitations and fee “breakpoints”; (iii) information about the profitability of the Advisory Agreements to the Advisers; (iv) a report prepared by the Advisers in response to a request submitted by the Independent Directors’ independent legal counsel on behalf of such Directors; and (v) a memorandum from the Independent Directors’ independent legal counsel on the responsibilities of the Board in considering for approval the investment advisory and investment sub-advisory arrangements under the 1940 Act and Maryland law. The Board, including the Fund’s Independent Directors, also considered other matters such as: (i) the Advisers’ financial results and financial condition; (ii) the Fund’s investment objective and strategies; (iii) the Advisers’ investment personnel and operations; (iv) the procedures employed to determine the value of the Fund’s assets; (v) the allocation of the Fund’s brokerage, if any, including, if applicable, allocations to brokers affiliated with the Advisers and the use, if any, of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services; (vi) the resources devoted to, and the record of compliance with, the Fund’s investment policies and restrictions, policies on personal securities transactions and other compliance policies; and (vii) possible conflicts of interest. Throughout the process, the Board was afforded the opportunity to ask questions of and request additional materials from the Advisers.

In addition to the materials requested by the Directors in connection with their annual consideration of the continuation of the Advisory Agreements, the Directors received materials in advance of each

Aberdeen Asia-Pacific Income Fund, Inc.

Supplemental Information (unaudited) (continued)

regular quarterly meeting of the Board that provided information relating to the services provided by the Advisers.

The Independent Directors were advised by separate independent legal counsel throughout the process. The Independent Directors also consulted in executive sessions with counsel to the Independent Directors regarding consideration of the renewal of the Advisory Agreements. The Directors also considered the recommendation of the Board’s Contract Review Committee, consisting solely of the Board’s Independent Directors, that the Advisory Agreements be renewed. In considering whether to approve the continuation of the Advisory Agreements, the Board, including the Independent Directors, did not identify any single factor as determinative. Individual Directors may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Board, including the Independent Directors, in connection with its approval of the continuation of the Advisory Agreements included the factors listed below.

The nature, extent and quality of the services provided to the Fund under the Advisory Agreements. The Directors considered the nature, extent and quality of the services provided by the Advisers to the Fund and the resources dedicated to the applicable Fund by the Advisers. The Board considered, among other things, the Advisers’ investment experience. The Board received information regarding the Advisers’ compliance with applicable laws and SEC and other regulatory inquiries or audits of the Fund and the Advisers. The Board also considered the background and experience of the Advisers’ senior management personnel and the qualifications, background and responsibilities of the portfolio managers primarily responsible for the day-to-day portfolio management services for the Fund. The Board also considered the allocation of responsibilities among the Advisers. The Board also considered that they receive information on a regular basis from the Fund’s Chief Compliance Officer regarding the Advisers’ compliance policies and procedures. The Board also considered the Advisers’ risk management processes. The Board considered the Advisers’ brokerage policies and practices. Management reported to the Board on, among other things, its business plans and organizational changes. The Board also took into account their knowledge of management and the quality of the performance of management’s duties through Board meetings, discussion and reports during the preceding year.

After reviewing these and related factors, the Board concluded that they were satisfied with the nature, extent and quality of the services provided and supported the renewal of the applicable Advisory Agreements.

Investment performance of the Fund and the Advisers. The Board received and reviewed with management, among other performance data, information compiled by Strategic Insight Mutual Fund Research and Consulting, LLC (“SI”), an independent third-party provider of investment company data as to the Fund’s total return, as compared to the funds in the Fund’s Morningstar category (the “Morningstar Group”). The Board also received performance information from management that compared the Fund’s return to comparable non-U.S. investment companies in its Lipper category.

The Board received and considered information for each of the last five fiscal years regarding the Fund’s total return on a gross and net basis and relative to the Fund’s benchmark, the Fund’s share performance and premium/discount information and the impact of foreign currency movements on the Fund’s performance. The Board also received and reviewed information as to the Fund’s total return for each of the last five fiscal years as compared with the total returns of its respective Morningstar Group average, and other comparable Aberdeen-managed funds and segregated accounts. The Board considered management’s discussion of the factors contributing to differences in performance, including differences in the investment strategies of each of these other funds and accounts. The Board also reviewed information as to the Fund’s discount/premium ranking relative to its Morningstar Group. The Board took into account management’s discussion of the Fund’s performance.

Fees and expenses. The Board reviewed with management the effective annual management fee rate paid by the Fund to the Investment Manager for investment management services. Additionally, the Boards received and considered information compiled at the request of the Fund by SI, comparing the Fund’s effective annual management fee rate with the fees paid by a peer group consisting of other comparable closed-end funds (each such group, a “Peer Group”). The Board also took into account the management fee structure, including that management fees for the Fund were based on the Fund’s total managed assets, whether attributable to common stock or borrowings, if any. The Board also considered that the compensation paid to the Investment Adviser and Sub-Adviser is paid by the Investment Manager, and, accordingly that the retention of the Investment Adviser and Sub-Adviser does not increase the fees or expenses otherwise incurred by the Fund’s shareholders. The Board also considered information about the Investment Adviser’s and Investment Sub-Adviser’s fees, including the amount of the management fees retained by the Investment Manager after payment of the advisory and sub-advisory fees. The Board also received information from management regarding the fees charged by the Advisers to other U.S. and non-U.S. clients investing primarily in an asset class similar to that of the Fund. The

Aberdeen Asia-Pacific Income Fund, Inc.

Supplemental Information (unaudited) (concluded)

Board considered the fee comparisons in light of the differences in resources and costs required to manage the different types of accounts.

The Board also took into account management’s discussion of the Fund’s expenses, including the factors that impacted the Fund’s expenses.

Economies of Scale. The Board took into account management’s discussion of the Fund’s management fee structure. The Board determined that the management fee structure was reasonable and reflects economies of scale being shared between the Fund and the Advisers. This determination was based on various factors, including that the Fund’s management fee schedule provides breakpoints at higher asset levels and how the Fund’s management fee compares relative to its Peer Group at higher asset levels.

The Directors also considered other factors, which included but were not limited to the following:

•

the effect of any market and economic volatility on the performance, asset levels and expense ratios of the Fund.

•

whether the Fund has operated in accordance with their investment objectives and the Fund’s record of compliance

with their investment restrictions, and the compliance programs of the Advisers. The Directors also considered the compliance-related resources the Advisers and their affiliates were providing to the Fund.

•

so-called “fallout benefits” to the Advisers and their affiliates, such as reputational and other indirect benefits. The Directors considered any possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

* * *

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Directors, including the Independent Directors, concluded that renewal of the Advisory Agreements would be in the best interest of each of the Fund and its shareholders. Accordingly, the Board, including the Board’s Independent Directors voting separately, approved the Fund’s Advisory Agreements for an additional one-year period.

Aberdeen Asia-Pacific Income Fund, Inc.

Management of the Fund (unaudited)

The names of the Directors and Officers of the Fund, their addresses, years of birth, 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 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.”

As of October 31, 2015`


Name, Address and Year of Birth	Position(s) Held With the Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past Five Years	Number of Funds in Fund Complex* Overseen by Director	Other Directorships Held by Director

Interested Director

Martin J. Gilbert** Aberdeen Asset Management PLC 10 Queen’s Terrace Aberdeen, Scotland AB10 1YG Year of Birth: 1955	Class III Director; Vice President	Term as Director expires 2018; Director since 2001	Mr. Gilbert is a founding director and shareholder, and Chief Executive of Aberdeen Asset Management PLC, the holding company of the management group that was established in 1983. He was President of the Fund, of Aberdeen Global Income Fund, Inc. and Aberdeen Australia Equity Fund, Inc. from February 2004 to March 2008. He was Chairman of the Board of the Fund and of Aberdeen Global Income Fund, Inc. from 2001 to September 2005. He was a Director of Aberdeen Asset Management Asia Limited, the Fund’s Investment Manager, from 1991 to 2014 and a Director of Aberdeen Asset Management Limited, the Fund’s Investment Adviser, from 2000 to 2014. He was a Director from 1995 to 2014, and was President from September 2006 to 2014 of Aberdeen Asset Management Inc., the Fund’s Administrator	28	None

Independent Directors

P. Gerald Malone 48 Barmouth Road London SW18 2DP United Kingdom Year of Birth: 1950	Chairman of the Board; Class II Director	Term expires 2017; Director since 2001	Mr. Malone is, by profession, a solicitor of some 39 years standing. He has served as a Minister of State in the United Kingdom Government. Mr. Malone currently serves as Independent Chairman of a London based oil services company and in addition, is Chairman of a privately owned pharmaceutical company. He is Chairman of the Board of Trustees of Aberdeen Funds and Chairman of the Board of Directors of Aberdeen Global Income Fund, Inc.	27	None

Neville J. Miles 142 Martins Lane Knockrow NSW 2479 Australia Year of Birth: 1946	Class I Director	Term expires 2016; Director since 1996	Mr. Miles is, and has been for over ten years, Chairman of Ballyshaw Pty. Ltd. (share trading, real estate development and investment). He is Chairman of the Board of Aberdeen Australia Equity Fund, Inc. He also is a non-executive director of a number of Australian companies.	27	None

William J. Potter c/o Aberdeen Asset Management Inc., 1735 Market Street, 32^nd Floor Philadelphia, Pa 19103 Year of Birth: 1948	Preferred Share Director	Term expires 2018; Director since 1986	Mr. Potter has been Chairman of Meredith Financial Group (investment management) since 2004, a Director of Alexandria Bancorp (international banking and trustee services) since 1989, and a Director of National Foreign Trade Council (international trade) since 1983.	3	None

Aberdeen Asia-Pacific Income Fund, Inc.

Management of the Fund (unaudited) (continued)


Name, Address and Year of Birth	Position(s) Held With the Fund	Term of Office and Length of Time Served	Principal Occupation(s) During Past Five Years	Number of Funds in Fund Complex* Overseen by Director	Other Directorships Held by Director

Peter D. Sacks c/o Aberdeen Asset Management Inc., 1735 Market Street, 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1945	Preferred Share Director	Term expires 2017; Director since 1993	Mr. Sacks has been Founding Partner of Toron AMI International Asset Management (investment management) since 1988. He is also a Director and Investment Advisory Committee member of several private and public sector funds in Canada.	27	None

John T. Sheehy B.V. Murray and Company 666 Goodwin Avenue Suite 300 Midland Park, NJ 07432 Year of Birth: 1942	Class I Director	Term expires 2016; Director since 1986	Mr. Sheehy has been a Senior Managing Director of B.V. Murray and Company (investment banking) since 2001 and Director of Macquarie AIR-serv Holding, Inc. (automotive services) from 2006 to 2013. He was a Managing Member of Pristina Capital Partners, LLC (water purification technology development) from 2007 to 2011, a Director of Smarte Carte, Inc. (airport services) from 2007 until 2010, and Managing Member of The Value Group LLC (venture capital) from 1997 to 2009.	27	None

Aberdeen Australia Equity Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Chile Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., the Aberdeen Funds, Aberdeen Investment Funds, Aberdeen Singapore Fund, Inc., Aberdeen Japan Equity Fund, Inc., The Asia-Tigers Fund, Inc., The India Fund, Inc., and Aberdeen Greater China Fund, Inc. have the same Investment Manager and Investment Adviser as the Fund, or an investment adviser that is affiliated with the Investment Manager and Investment Adviser 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. Mr. Gilbert serves as a Director of several Funds in the Fund Complex.

Aberdeen Asia-Pacific Income Fund, Inc.

Management of the Fund (unaudited) (continued)

Information Regarding Officers who are not Directors


Name, Address and Year of Birth	Position(s) Held With the Fund	Term of Office* and Length of Time Served	Principal Occupation(s) During Past Five Years

Kenneth Akintewe** Aberdeen Asset Management Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1980	Vice President	Since 2014	Currently, Senior Investment Manager for Aberdeen Asset Management Asia Limited. Mr. Akintewe joined Aberdeen in 2002.

Nicholas Bishop** Aberdeen Asset Management Limited Level 6, 201 Kent St. Sydney, NSW 2000 Australia Year of Birth: 1975	Vice President	Since 2014	Currently, Head of Fixed Income in Australia for Aberdeen Asset Management Limited. Mr. Bishop joined Aberdeen in 2007 following Aberdeen’s acquisition of Deutsche Asset Management (Australia) Limited.

Jeffrey Cotton** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1977	Chief Compliance Officer; Vice President, Compliance	Since 2011	Currently, Director and Vice President and Head of Compliance – US for Aberdeen Asset Management Inc. Mr. Cotton joined Aberdeen in 2010. Prior to joining Aberdeen, Mr. Cotton was a Senior Compliance Officer at Old Mutual Asset Management (2009-2010) supporting its affiliated investment advisers and mutual fund platform. Mr. Cotton was also a VP, Senior Compliance Manager at Bank of America/Columbia Management (2006-2009).

Sharon Ferrari** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1977	Assistant Treasurer	Since 2009	Currently, Senior Fund Administration Manager – US for Aberdeen Asset Management Inc. Ms. Ferrari joined Aberdeen Asset Management Inc. as a Senior Fund Administrator in 2008.

Alan Goodson** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Vice President	Since 2009	Currently, Director, Vice President and Head of Product – US, overseeing Product Management, Product Development and Investor Services for Aberdeen’s registered and unregistered investment companies in the US and Canada. Mr Goodson is Vice President of Aberdeen Asset Management Inc. and joined Aberdeen in 2000.

Matthew Keener** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1976	Assistant Secretary	Since 2008	Currently, Senior Product Manager for Aberdeen Asset Management Inc. Mr. Keener joined Aberdeen Asset Management Inc. in 2006 as a Fund Administrator.

Megan Kennedy** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Vice President and Secretary	Since 2008	Currently, Head of Product Management for Aberdeen Asset Management Inc. Ms. Kennedy joined Aberdeen Asset Management Inc. in 2005 as a Senior Fund Administrator. Ms. Kennedy was promoted to Assistant Treasurer Collective Funds/North American Mutual Funds in February 2008 and promoted to Treasurer Collective Funds/North American Mutual Funds in July 2008.

Adam McCabe** Aberdeen Asset Management Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1979	Vice President	Since 2011	Currently, Head of Asian Fixed Income on the Fixed Income – Asia Pacific desk, responsible for currency and interest rate strategies in Aberdeen’s Asian fixed income portfolios. Mr. McCabe joined Aberdeen in 2009 following the acquisition of certain asset management businesses from Credit Suisse. Mr. McCabe worked for Credit Suisse since 2001, where he was an investment manager responsible for the development and implementation of its Asian currency and interest rate strategies.

Aberdeen Asia-Pacific Income Fund, Inc.

Management of the Fund (unaudited) (concluded)


Name, Address and Year of Birth	Position(s) Held With the Fund	Term of Office* and Length of Time Served	Principal Occupation(s) During Past Five Years

Bev Hendry** Aberdeen Asset Management Inc. 1735 Market St. 32^nd Floor Philadelphia, PA 19103 Year of Birth: 1953	Vice President	Since 2015	Currently, Bev Hendry is Co-Head of Americas and Chief Financial Officer. Mr. Hendry first joined Aberdeen in 1987 and helped establish Aberdeen’s business in the Americas in Fort Lauderdale. Bev left Aberdeen in 2008 when the company moved to consolidate its headquarters in Philadelphia. Bev re-joined Aberdeen from Hansberger Global Investors in Fort Lauderdale where he worked for six years as Chief Operating Officer.

Andrea Melia** Aberdeen Asset Management Inc. 1735 Market St. 32nd Floor Philadelphia, PA 19103 Year of Birth: 1969	Treasurer and Principal Accounting Officer	Since 2009	Currently, Vice President and Head of Fund Administration- US and Vice President for Aberdeen Asset Management Inc. Ms. Melia joined Aberdeen Asset Management Inc. in September 2009. Prior to joining Aberdeen, Ms. Melia was Director of fund administration and accounting oversight for Princeton Administrators LLC, a division of BlackRock Inc. and had worked with Princeton Administrators since 1992.

Jennifer Nichols** Aberdeen Asset Management Inc. 1735 Market St. 32nd Floor Philadelphia, PA 19103 Year of Birth: 1978	Vice President	Since 2008	Currently, Global Head of Legal for Aberdeen Asset Management PLC. Director and Vice President for Aberdeen Asset Management Inc. (since October 2006).

Christian Pittard** Aberdeen Asset Managers Limited Bow Bells House, 1 Bread Street London United Kingdom Year of Birth: 1973	President	Since 2009	Currently, Global Head of Product Opportunities, for Aberdeen Asset Management PLC. Previously, Director and Vice President (2006-2008), Chief Executive Officer (from October 2005 to September 2006) and employee (since June 2005) of Aberdeen Asset Management Inc.

Victor Rodriguez** Aberdeen Asset Management Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1971	Vice President	Since 2009	Currently, Head of Asia-Pacific Fixed Income for Aberdeen Asset Management Asia Limited. Mr. Rodriguez joined Aberdeen Asset Management Limited in 2009 following the acquisition of Credit Suisse Asset Management (Australia) Limited.

Sofia Rosala* Aberdeen Asset Management Inc. 1735 Market St. 32nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Vice President and Deputy Chief Compliance Officer	Since 2014	Currently, Vice President and Deputy Head of Compliance and Adviser Chief Compliance Officer for Aberdeen Asset Management Inc. (since July 2012). Prior to joining Aberdeen, Ms. Rosala was Counsel for Vertex, Inc. from April 2011 to June 2012. She was also an Associate attorney with Morgan, Lewis and Bockius from May 2008-April 2011.

Lucia Sitar** Aberdeen Asset Management Inc. 1735 Market St. 32nd Floor Philadelphia, PA 19103 Year of Birth: 1971	Vice President	Since 2008	Currently, Vice President and Managing U.S. Counsel for Aberdeen Asset Management Inc. Ms. Sitar joined Aberdeen Asset Management Inc. in July 2007.

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 shareholders. The officers were last elected on March 11, 2015.

Messrs. Akintewe, Bishop, Cotton, Goodson, Hendry, Keener, Pittard, McCabe, and Rodriguez and Mses. Ferrari, Kennedy, Melia, Nicholas, Rosala and Sitar hold one or more officer positions with one or more of the following funds: Aberdeen Australia Equity Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Funds, Aberdeen Investment Funds, Aberdeen Indonesia Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Chile Fund, Inc., and Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., Aberdeen Singapore Fund, Inc., Aberdeen Japan Equity Fund, Inc., The Asia-Tigers Fund, Inc., The India Fund, Inc., and Aberdeen Greater China Fund Inc., each of which may be deemed to be part of the same “Fund Complex” as the Fund.

Aberdeen Asia-Pacific Income Fund, Inc.

Corporate Information

Directors

P. Gerald Malone, Chairman

Martin J. Gilbert

Neville J. Miles

William J. Potter

Peter D. Sacks

John T. Sheehy

Officers

Christian Pittard, President

Jeffrey Cotton, Chief Compliance Officer and Vice President, Compliance

Sofia Rosala, Deputy Chief Compliance Officer and Vice President

Megan Kennedy, Vice President and Secretary

Andrea Melia, Treasurer and Principal Accounting Officer

Kenneth Akintewe, Vice President

Nicholas Bishop, Vice President

Martin J. Gilbert, Vice President

Alan Goodson, Vice President

Bev Hendry, Vice President

Adam McCabe, Vice President

Jennifer Nichols, Vice President

Victor Rodriguez, Vice President

Lucia Sitar, Vice President

Sharon Ferrari, Assistant Treasurer

Matthew Keener, Assistant Secretary

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

Investment Sub-Adviser

Aberdeen Asset Managers Limited

Bow Bells House, 1 Bread Street

London United Kingdom

EC4M 9HH

Administrator

Aberdeen Asset Management Inc.

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

Custodian

State Street Bank and Trust Company

1 Iron Street, 5th Floor

Boston, MA 02210

Transfer Agent

Computershare Trust Company, N.A.

PO Box 30170

College Station, TX 77842-3170

Independent Registered Public Accounting Firm

KPMG LLP

1601 Market Street

Philadelphia, PA 19103

Legal Counsel

Willkie Farr & Gallagher LLP

787 Seventh Ave

New York, NY 10019

Investor Relations

Aberdeen Asset Management Inc.

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

1-800-522-5465

InvestorRelations@aberdeen-asset.com

LOGO

Aberdeen Asset Management Asia Limited

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may purchase, from time to time, shares of its common stock in the open market.

The common shares of Aberdeen Asia-Pacific Income Fund, Inc. are traded on the NYSE MKT Equities Exchange under the symbol “FAX”. Information about the Fund’s net asset value and market price is available at www.aberdeenfax.com

This report, including the financial information herein, is transmitted to the shareholders of Aberdeen Asia-Pacific 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.

LOGO

Item 2 – Code of Ethics.

(a)

As of October 31, 2015, the Registrant had adopted a Code of Ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party (the “Code of Ethics”).

(c)

During the period covered by this report, the Codes of Ethics was revised in order to amend the definition of “employee” to extend Sarbanes-Oxley whistleblower protection to employees of private contractors that provide service to the Fund in accordance with the Supreme Court decision in Lawson v. FMR LLC, 134 S. Ct. 1158 (2014).

(d)

During the period covered by this report, there were no waivers to the provisions of the Code of Ethics.

(f)

A copy of the Code of Ethics has been filed as an exhibit to this Form N-CSR.

Item 3 – Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that John T. Sheehy, a member of the Board of Directors’ Audit and Valuation Committee, possesses the attributes, and has acquired such attributes through means, identified in instruction 2 of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Sheehy as the Audit and Valuation Committee’s financial expert. Mr. Sheehy in an “independent” director pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

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 Year Ended	(a) Audit Fees		(b) Audit-Related Fees		(c)¹ Tax Fees		(d) All Other Fees
October 31, 2015	$	80,500	$	0	$	7,200	$	0
October 31, 2014	$	104,300	$	0	$	7,140	$	0

¹	The Tax Fees are for the completion of the Registrant’s federal and state tax returns.

(e)(1)

The Registrant’s Audit and Valuation Committee (the “Committee”) has adopted a Charter that provides that the Committee shall annually select, retain or terminate the Fund’s independent auditor and, in connection therewith, to evaluate the terms of the engagement (including compensation of the independent auditor) and the

qualifications and independence of the independent auditor, including whether the independent auditor provides any consulting, auditing or tax services to the Registrant’s investment adviser or any sub-adviser, and to receive the independent auditor’s specific representations as to their independence, delineating all relationships between the independent auditor and the Registrant, consistent with the PCAOB Rule 3526 or any other applicable auditing standard. PCAOB Rule 3526 requires that, at least annually, the auditor: (1) disclose to the Committee in writing all relationships between the auditor and its related entities and the Fund and its related entities that in the auditor’s professional judgment may reasonably be thought to bear on independence; (2) confirm in the letter that, in its professional judgment, it is independent of the Fund within the meaning of the Securities Acts administered by the SEC; and (3) discuss the auditor’s independence with the audit committee. The Committee is responsible for actively engaging in a dialogue with the independent auditor with respect to any disclosed relationships or services that may impact the objectivity and independence of the independent auditor and for taking, or recommending that the full Board take, appropriate action to oversee the independence of the independent auditor. The Committee Charter also provides that the Committee shall review in advance, and consider approval of, any and all proposals by Management or the Registrant’s investment adviser that the Registrant, the investment adviser or their affiliated persons, employ the independent auditor to render “permissible non-audit services” to the Registrant and to consider whether such services are consistent with the independent auditor’s independence. The Committee may delegate to one or more of its members (“Delegates”) authority to pre-approve permissible non-audit services to be provided to the Fund. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. The Committee shall communicate any pre-approval made by it or a Delegate to the Adviser, who will ensure that the appropriate disclosure is made in the Fund’s periodic reports required by Section 30 of the Investment Company Act of 1940, as amended, and other documents as required under the federal securities laws.

(e)(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 and Valuation Committee pursuant to Rule 2-01 (c)(7)(i)(C) of Regulation S-X.

(f)

Not applicable.

(g)

Non-Audit Fees

For the fiscal year ended October 31, 2015 and October 31, 2014, respectively, KPMG billed $193,253 and $812,544 for aggregate non-audit fees for services to the Registrant and to the Registrant’s Investment Manager and Investment Adviser.

(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 sub-adviser 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 and Valuation Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).

For the fiscal year ended October 31, 2015, the Audit and Valuation Committee members were:

Neville J. Miles

Peter D. Sacks

John T. Sheehy

(b)

Not applicable.

Item 6 – Investments.

(a)

Included as part of the Report to Stockholders filed under Item 1 of this Form N-CSR.

(b)

Not applicable.

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 of Directors has the opportunity to periodically review the Investment Manager’s and Investment Adviser’s proxy voting policies and material amendments thereto.

The proxy voting policies of the Registrant are included herewith as Exhibit (d) and policies of the Investment Manager and Investment Adviser are included as Exhibit (e).

Item 8 – Portfolio Managers of Closed-End Management Investment Companies.

(a)(1)

The information in the table below is as of January 7, 2016

Individual & Position

Services Rendered

Past Business Experience

Victor Rodriguez

Head of Asia-Pacific Fixed Income

Oversees management of fixed income division in Asia-Pacific

Currently, Head of Asia-Pacific Fixed Income for Aberdeen Asset Management Asia Limited. Mr. Rodriguez joined Aberdeen Asset Management Limited in 2009 following the acquisition of Credit Suisse Asset Management (Australia) Limited (“CSAM”).



Nick Bishop Head of Fixed Income Australia	Oversees management of the Australian Fixed Income team	Currently, Head of Fixed Income in Australia for Aberdeen Asset Management Limited. Mr. Bishop joined Aberdeen in 2007 following Aberdeen’s acquisition of Deutsche Asset Management (Australia) Limited.

Adam McCabe Head of Asian Fixed Income	Responsible for Asian fixed income	Currently Head of Asian Fixed Income, responsible for currency and interest rate strategies in Aberdeen’s Asian fixed income portfolios. He joined Aberdeen in 2009 following the acquisition of the CSAM business. He worked for CSAM since 2001, where he was an investment manager responsible for the development and implementation of its Asian currency and interest rate strategies.

Kenneth Akintewe Senior Investment Manager	Responsible for Asian fixed income (interest rates and currencies) research and portfolio management	Currently, Senior Investment Manager for Aberdeen Asset Management Asia Limited. Mr. Akintewe joined Aberdeen in 2002.

John Manning Head of Asia-Pacific Credit Research	Responsible for credit analyst functions	Currently Head of Asia-Pacific Credit Research within the Australian fixed income team. He joined Aberdeen in November 2011. Previously spent 25 years on the sell side with ANZ, Soc Gen and RBS.

(a)(2)

The information in the table below is as of October 31, 2015


Name of Portfolio Manager	Type of Accounts	Total Number of Accounts Managed		Total Assets ($M)		Number of Accounts Managed for Which Advisory Fee is Based on Performance		Total Assets for Which Advisory Fee is Based on Performance ($M)
Victor Rodriguez	Registered Investment Companies		4	$	2,226.96		0	$	0
	Pooled Investment Vehicles		47	$	3,013.64		0	$	0
	Other Accounts		63	$	10,116.79		1	$	37.77
Nick Bishop	Registered Investment Companies		4	$	2,226.96		0	$	0
	Pooled Investment Vehicles		47	$	3,013.64		0	$	0
	Other Accounts		63	$	10,116.79		1	$	37.77
Adam McCabe	Registered Investment Companies		2	$	1,356.72		0	$	0
	Pooled Investment Vehicles		29	$	1,262.47		0	$	0
	Other Accounts		35	$	4,406.19		0	$	0
Kenneth Akintewe	Registered Investment Companies		2	$	1,356.72		0	$	0
	Pooled Investment Vehicles		29	$	1,262.47		0	$	0
	Other Accounts		35	$	4,406.19		0	$	0
John Manning	Registered Investment Companies		2	$	1,356.72		0	$	0
	Pooled Investment Vehicles		29	$	1,262.47		0	$	0
	Other Accounts		35	$	4,406.19		0	$	0

Total assets are as of October 31, 2015 and have been translated to U.S. dollars at a rate of £1.00 = $1.54.

In accordance with legal requirements in the various jurisdictions in which they operate, and their own Conflicts of Interest policies, all subsidiaries of Aberdeen Asset Management PLC, (together Aberdeen), have in place arrangements to identify and manage Conflicts of Interest that may arise between them and their clients or between their different clients. Where Aberdeen does not consider that these arrangements are sufficient to manage a particular conflict, it will inform the relevant client(s) of the nature of the conflict so that the client(s) may decide how to proceed.

The portfolio managers’ management of “other accounts”, including (1) mutual funds; (2) other pooled investment vehicles; and (3) other accounts that may pay advisory fees that are based on account performance (“performance-based fees”), may give rise to potential conflicts of interest in connection with their management of a Fund’s investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same investment objective as a fund. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio manager could favor one account over another. However, Aberdeen believes that these risks are mitigated by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential conflicts. In addition, Aberdeen has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.

In some cases, another account managed by the same portfolio manager may compensate Aberdeen based on the performance of the portfolio held by that account. The existence of such performance-based fees may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities.

Another potential conflict could include instances in which securities considered as investments for a Fund also may be appropriate for other investment accounts managed by Aberdeen or its affiliates. Whenever decisions are made to buy or sell securities by the Fund and one or more of the other accounts simultaneously, Aberdeen may aggregate the purchases and sales of the securities and will allocate the securities transactions in a manner that it believes to be equitable under the circumstances. As a result of the allocations, there may be instances where the Fund will not participate in a transaction that is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect on the price or amount of the securities available to a fund from time to time, it is the opinion of Aberdeen that the benefits from the Aberdeen organization outweigh any disadvantage that may arise from exposure to simultaneous transactions. Aberdeen has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies will detect each and every situation in which a conflict arises.

(a)(3)

Aberdeen Asset Management PLC’s (“Aberdeen”) remuneration policies are designed to support its business strategy as a leading international asset manager. The objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for Aberdeen’s clients and shareholders. Aberdeen operates in a highly competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.

Aberdeen’s policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The aggregate value of awards in any year is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards, which are payable to all members of staff are determined by a rigorous assessment of achievement against defined objectives.

A long-term incentive plan for key staff and senior employees comprises of a mixture of cash and deferred shares in Aberdeen PLC or select Aberdeen funds (where applicable). Overall compensation packages are designed to be competitive relative to the investment management industry.

Base Salary

Aberdeen’s policy is to pay a fair salary commensurate with the individual’s role, responsibilities and experience, and having regard to the market rates being offered for similar roles in the asset management sector and other comparable companies. Any increase is generally to reflect inflation and is applied in a manner consistent with other Aberdeen employees; any other increases must be justified by reference to promotion or changes in responsibilities.

Annual Bonus

Aberdeen’s policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The Remuneration Committee of Aberdeen determines the key performance indicators that will be applied in considering the overall size of the bonus pool. In line with practice amongst other asset management companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by the Remuneration Committee.

Aberdeen has a deferral policy which is intended to assist in the retention of talent and to create additional alignment of executives’ interests with Aberdeen’s sustained performance and, in respect of the deferral into funds, managed by Aberdeen, to align the interest of asset managers with our clients.

Staff performance is reviewed formally at least once a year. The review process evaluates the various aspects that the individual has contributed to Aberdeen, and specifically, in the case of portfolio managers, to the relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to presenting the team externally are also evaluated.

In the calculation of a portfolio management team’s bonus, Aberdeen takes into consideration investment matters (which include the performance of funds, adherence to the company investment process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations. To the extent performance is factored in, such performance is not judged against any specific benchmark and is evaluated over the period of a year - January to December. The pre- or after-tax performance of an individual account is not considered in the determination of a portfolio manager’s discretionary bonus; rather the review process evaluates the overall performance of the team for all of the accounts the team manages.

Portfolio manager performance on investment matters is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination of the team’s and individual’s performance is considered and evaluated.

Although performance is not a substantial portion of a portfolio manager’s compensation, Aberdeen also recognizes that fund performance can often be driven by factors outside one’s control, such as (irrational) markets, and as such pays attention to the effort by portfolio managers to ensure integrity of our core process by sticking to disciplines and processes set, regardless of momentum and ‘hot’ themes. Short-terming is thus discouraged and trading-oriented managers will thus find it difficult to thrive in the Aberdeen environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would be identified via Aberdeen’s dynamic compliance monitoring system.

(a)(4)


Individual	Dollar Range of Equity Securities in the Registrant Beneficially Owned by the Portfolio Manager as of October 31, 2015
Victor Rodriguez	$	0
Nick Bishop	$	0
Adam McCabe	$	10,001-50,000
Kenneth Akintewe	$	10,001-50,000
John Manning	$	0

(b) Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES


Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ¹		(d) Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs ¹
November 1, 2014 through November 30, 2014		547,537	$	5.81		547,537		25,582,523
December 1, 2014 through December 31, 2014		900,000	$	5.53		900,000		24,682,523
January 1, 2015 through January 31, 2015		312,607	$	5.57		312,607		24,369,916
February 1, 2015 through February 28, 2015		250,000	$	5.49		250,000		24,119,916
March 1, 2015 through March 31, 2015		291,015	$	5.42		291,015		23,828,901
April 1, 2015 through April 30, 2015		492,485	$	5.46		492,485		23,336,416
May 1, 2015 through May 31, 2015		50,000	$	5.48		50,000		23,286,416
June 1, 2015 through June 30, 2015		714,821	$	5.09		714,821		22,571,595
July 1, 2015 through July 31, 2015		583,000	$	4.82		583,000		21,988,595
August 1, 2015 through August 31, 2015		400,000	$	4.74		400,000		21,588,595
September 1, 2015 through September 30, 2015		350,000	$	4.50		350,000		21,238,595
October 1, 2015 through October 31, 2015		100,000	$	4.71		100,000		21,138,595

Total		4,991,465	$	5.25		4,991,465		—

The Registrant’s stock repurchase program was announced on March 19, 2001 and further amended by the Registrant’s Board of Directors on December 12, 2007. Under the terms of the current program, the Registrant is permitted to repurchase up to 10% of its outstanding shares of common stock, par value $.01 per share, on the open market during any 12 month period.

Item 10 – Submission of Matters to a Vote of Security Holders.

During the period ended October 31, 2015, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.

Item 11 – Controls and Procedures.

(a)

The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c)) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d15(b)).

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal half-year 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 of the Registrant for the period covered by this report as required pursuant to Item 2 of this Form N-CSR.

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended.

(a)(3)

Not applicable.

(b)

Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended.

(c)

A copy of the Registrant’s notices to stockholders, which accompanied distributions paid, pursuant to the Registrant’s Managed Distribution Policy since the Registrant’s last filed N-CSR, are filed herewith as Exhibits (c)(1), (c)(2), (c)(3), (c)(4), and (c)(5) as required by the terms of the Registrant’s SEC exemptive order.

(d)

Proxy Voting Policy of Registrant.

(e)

Investment Manager’s and Investment Adviser’s Proxy Voting Policies

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 Asia-Pacific Income Fund, Inc.

		By:		/s/ Christian Pittard
				Christian Pittard, Principal Executive Officer of Aberdeen Asia-Pacific Income Fund, Inc.

		Date: January 7, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


		By:		/s/ Christian Pittard
				Christian Pittard, Principal Executive Officer of Aberdeen Asia-Pacific Income Fund, Inc.

		Date: January 7, 2016


		By:		/s/ Andrea Melia
				Andrea Melia, Principal Financial Officer of Aberdeen Asia-Pacific Income Fund, Inc.

		Date: January 7, 2016

EXHIBIT LIST

12(a)(1) – Code of Ethics of the Registrant for the period covered by this report as required pursuant to Item 2 of this Form N-CSR.

12(a)(2) – Rule 30a-2(a) Certifications

12(b) – Rule 30a-2(b) Certifications

12(c)(1), 12(c)(2), 12(c)(3), 12(c)(4), and 12(c)(5) - Distribution notice to stockholders

12(d) – Proxy Voting Policy of Registrant.

12(e) – Investment Manager’s and Investment Adviser’s Proxy Voting Policies