(GRAPHIC)
Invests primarily in Australian and Asian debt securities.
(Icon) Aberdeen Asia-Pacific Income Fund, Inc.
Semi-Annual Report
April 30, 2002
Letter to Shareholders
June 21, 2002
Dear Shareholder,
We present this Semi-Annual Report which covers
the activities of Aberdeen Asia-Pacific Income
Fund, Inc. (the "Fund") for the six months
ended April 30, 2002. Included in this report
is a review of the Australian and selected
Asian economies and investment markets,
together with an overview of the Fund's
investments prepared by the Investment Manager,
Aberdeen Asset Managers (C.I.) Limited.
Net Asset Value Performance
The Fund's net asset value ("NAV") return was
8.4% for the six months ended April 30, 2002,
and 7.8% per annum since inception, assuming
reinvestment of distributions.
Share Price Performance
The fund's share price rose 10.7% over the six
months, from $4.02 on October 31, 2001 to $4.45
on April 30, 2002. The Fund's share price on
April 30, 2002 represented a discount to NAV of
6.7%. This represents a narrowing of the
discount to NAV of 13.5% on October 31, 2001.
Asia: 40.2% of Total Assets invested in Asian
Debt Securities
As of April 30, 2002, the Fund held 40.2% of
its total assets in Asian debt securities. Of
the Fund's total assets, 25.9% were held in
Asian Yankee bonds, bringing the Fund's total
US dollar exposure to 27.0%.
Credit Quality: 73.2% of Total Assets Rated or
Deemed Equivalent to A or Better
The Fund's total investments have maintained a
high credit quality. As of April 30, 2002,
73.2% of the portfolio was invested in
securities where either the issue or the issuer
was rated A or better, or judged by the
Investment Manager to be of equivalent quality.
Distributions
Distributions to common shareholders for the 12
months ended April 30, 2002 totaled 50 cents
per share. Based on the share price of $4.45 on
April 30, 2002, the cash distribution rate over
the 12 months then ended was 11.2%. Since all
2 Aberdeen Asia-Pacific Income Fund, Inc.
Letter to Shareholders (continued)
distributions are paid after deducting
applicable withholding taxes, the effective
distribution rate may be higher for those US
investors who are able to claim a tax credit.
On June 19, 2002, the Board of Directors
declared a monthly distribution of 3.5 cents
per share payable on July 12, 2002 to all
shareholders of record as of June 28, 2002.
The Board's policy is to provide investors with
a stable monthly distribution out of current
income, supplemented by realized capital gains
and, to the extent necessary, paid-in capital.
It is the Board's intention that the monthly
distribution of 3.5 cents per share be
maintained for 12 months, having begun with the
February 2002 distribution payment. This policy
is subject to regular review at the Board's
quarterly meetings, unless market conditions
require an earlier evaluation. The next review
is scheduled to take place in September 2002.
Buy-Back program
On March 19, 2001, the Fund announced the
approval of a share buy-back program. Purchases
of shares under this program commenced on June
6, 2001, and as of the date of this report,
2,678,600 shares have been repurchased and
cancelled.
Shareholders Elect Class II Directors and
Directors to Represent Holders of Preferred
Stock
At the Annual Meeting of Shareholders, Mr.
Howard A. Knight, Mr. P. Gerald Malone, Mr.
Peter D. Sacks and Mr. Brian M. Sherman were
elected by the holders of the Fund's common
stock as Class II Directors to serve for a
three-year term expiring at the 2005 Annual
Meeting of Shareholders. Dr. Anton E. Schrafl
and Mr. John T. Sheehy were elected by the
holders of the Fund's preferred stock for a
one-year term expiring at the 2003 Annual
Meeting of Shareholders.
Fund Investment Policy
The Securities and Exchange Commission has
adopted a rule under the Investment Company Act
of 1940 regarding fund names. This rule
requires funds with names suggesting an
investment focus to adopt a policy to invest at
least 80% of the fund's
Aberdeen Asia-Pacific Income Fund, Inc. 3
Letter to Shareholders (continued)
assets in investments suggested by its name. In
order to comply with this rule, the Directors
of the Fund adopted the following investment
policy, at the June 19, 2002 meeting:
For as long as the name of the Fund remains
Aberdeen Asia-Pacific Income Fund, Inc., it
shall be the policy of the Fund normally to
invest at least 80% of its net assets plus the
amount of any borrowings for investment
purposes, in 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 Board of Directors upon 60 days
prior written notice to shareholders.
This policy is consistent with the investment
policies of the Fund set forth in the Fund's
prospectus, as further amended by shareholders
at the Annual Meetings of Shareholders in 1998
and 2001.
For information about the Fund, including
weekly updates of share price, NAV, and details
of distributions, please contact Aberdeen Asset
Management, Investor Relations, by:
- calling toll free on 1-800-522-5465 in the United States,
- emailing InvestorRelations@aberdeen-asset.com, or
- visiting the website at www.aberdeen-asset.us.
For information about the Aberdeen Group, visit
the Aberdeen Website at www.aberdeen-asset.com.
Sincerely,
Martin Gilbert
Chairman
All amounts are U.S. dollars unless otherwise stated.
4 Aberdeen Asia-Pacific Income Fund, Inc.
Your Board's policy is to provide investors
with a stable monthly distribution out of
current income, supplemented by realized
capital gains and, to the extent necessary,
paid-in capital.
The Fund is subject to U.S. corporate, tax and
securities laws. Under U.S. tax accounting
rules, the amount of distributable income for
each fiscal period depends on the actual
exchange rates during the entire year between
the U.S. dollar and the currencies in which
Fund assets are denominated and on the
aggregate gains and losses realized by the Fund
during the entire year.
Therefore the exact amount of distributable
income for each fiscal year can only be
determined as of the end of the Fund's fiscal
year, October 31. However, under the U.S.
Investment Company Act of 1940, the Fund is
required to indicate the source of each
distribution to shareholders.
The Fund estimates that distributions for the
fiscal year commencing November 1, 2001,
including the distribution paid on June 7, 2002
are comprised of 21% net investment income and
79% return of paid-in capital.
This estimated distribution composition may
vary from month to month because it may be
materially impacted by future realized gains
and losses on securities and on fluctuations in
the value of the currencies in which Fund
assets are denominated.
In January 2003, 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.
Aberdeen Asia-Pacific Income Fund, Inc. 5
Dividend Reinvestment and Cash Purchase Plan
We invite you to participate in the Fund's
Dividend Reinvestment and Cash Purchase Plan
("the Plan") which allows you to automatically
re-invest your distributions in shares of the
Fund's common stock at favorable commission
rates. Distributions made under the Plan are
taxed to the same extent as are cash
distributions. The Plan also enables you to
make additional cash investments in shares of
at least $100 per month. Under this
arrangement, the Plan Agent will purchase
shares for you on the stock exchange or
otherwise on the open market on or about the
15th of each month, unless shares of the Fund
are trading at a premium, in which case, the
Fund will issue additional shares.
As a Participant in the Plan, you will have the
convenience of:
Automatic reinvestment - the Plan Agent will
automatically reinvest your distributions,
allowing you to gradually grow your holdings in
the Fund;
Lower costs - shares purchased on your behalf
under the Plan will be at reduced brokerage
rates. Brokerage on share purchases is
currently 2 cents per share;
Convenience - the Plan Agent will hold your
shares in non-certificated form and will
provide a detailed record of your holdings at
the end of each distribution period.
To request a brochure containing information on
the Plan, together with an authorization form,
please contact the Plan Agent, State Street
Bank & Trust Company, P.O. Box 8200, Boston, MA
02266-8200 or toll free on 1-800-451-6788.
6 Aberdeen Asia-Pacific Income Fund, Inc.
Report of the Investment Manager
Share Price Performance
On April 30, 2002, the Fund's share price was
$4.45, which represented a discount of 6.7% to
the NAV of $4.77. At the date of this report,
the share price was $4.84 representing a
discount of 5.8% to the NAV of $5.14.
Distributions
The Board reduced the Fund's monthly
distribution from 4.5 cents per share to 3.5
cents per share beginning with the distribution
payable on February 8, 2002. The Investment
Manager continues its efforts to reallocate the
portfolio toward higher yielding Asian fixed
income securities. Further, with the
expectation of an improving global economy in
mid to late 2002, the Investment Manager
anticipates improvement in the value of non-
U.S. dollar currencies. Together, these factors
may enhance the Fund's net investment income
and ability to realize capital gains. However,
there can be no assurance that the Investment
Manager's expectations will be met.
Auction Market Preferred Stock (AMPS)
The Fund's $600 million of AMPS continued to be
well bid at the weekly auctions. The average
dividend rate paid was 2.09% over the six
months ended April 30, 2002, compared with an
interest rate of 1.83% for 30-day US commercial
paper over the same period. These rates have
decreased over the period, due to the lowering
of interest rates by the U.S. Federal Reserve
in the fourth quarter of 2001. The rates paid
to preferred shareholders have decreased
further since April 30, 2002 to a level of
2.05% as of the date of this report.
Overall, the Fund's shareholders have enjoyed
long-term benefits from leverage to date in the
form of an enhanced total return. In the past
six months, the impact of AMPS has been
positive, largely as a result of the recovery
in the Australian dollar and an end to the
unilateral strength of the U.S. dollar. In
addition, U.S. interest rates and short term
rates have remained at historically low levels
during the period, opening up a positive yield
differential between AMPS funding rates and
investment yields. Offsetting these impacts to
some extent have been capital losses as bond
yields have risen in line with signs of global
recovery. Overall, the outlook over the medium-
term for investment markets and the portfolio
in respect of these factors is
Aberdeen Asia-Pacific Income Fund, Inc. 7
Report of the Investment Manager (continued)
considered by the Investment Manager to be
favorable, and therefore AMPS are seen as
having the potential to continue to enhance
total shareholder returns in the medium term.
On September 3, 2001 the Board of Directors
resolved to amend the Fund's policies with
respect to derivatives to enable the Investment
Manager to use interest rate swaps to hedge up
to one third of the Fund's AMPS liabilities.
This gives the investment Manager the
flexibility to lock in historically low U.S.
dollar interest rates with respect to up to one
third of the Fund's AMPS. A significant type of
risk associated with interest rate swaps is the
risk that the counterparty may default or file
for bankruptcy, in which case the Fund would
bear the risk of loss of the amount expected to
be received under the swap agreement. There can
be no assurance that the Fund will have an
interest rate swap in place at any given time
nor can there be any assurance that, if an
interest rate swap is in place, it will be
successful in hedging the Fund's interest rate
risk with respect to the AMPS.
The implementation of this strategy will be at
the discretion of the Investment Manager.
PORTFOLIO COMPOSITION
Quality of Investments
As of April 30, 2002, 73.2% of the Fund's total
assets were invested in securities where either
the issue or the issuer was rated A or better
by Standard & Poor's Corporation or Moody's
Investors Service, Inc. or, if unrated, was
judged to be of equivalent quality by the
Investment Manager. The following table shows
the ratings of securities held by the Fund as
of April 30, 2002, compared with the previous
six and twelve months:
AAA/Aaa AA/Aa A BBB/Baa BB/Ba* B*
Date % % % % % %
----------------------------------------------------------------
April 30, 2002 49.3 13.6 10.3 17.6 6.8 2.4
October 31, 2001 51.0 21.2 2.6 19.3 3.5 2.4
April 30, 2001 47.9 24.1 4.0 17.7 4.2 2.1
----------------------------------------------------------------
* Below investment grade
8 Aberdeen Asia-Pacific Income Fund, Inc.
Report of the Investment Manager (continued)
Geographic Composition
The table below shows the geographical
composition (i.e. with Yankees reallocated into
country of issuance) of the Fund's total
investments as of April 30, 2002 compared with
the previous six and twelve months:
----------------------------------------------------------------
Asia
Australia (including NZ) United States
Date % % %
April 30, 2002 58.7 40.2 1.1
October 31, 2001 63.5 31.1 5.4
April 30, 2001 66.1 32.1 1.8
----------------------------------------------------------------
Currency Composition
The table below shows the currency composition
of the Fund's total investments as of April 30,
2002, compared with the previous six and twelve
months:
----------------------------------------------------------------------
Australian Asian Currencies
Dollar (including NZ dollar) US Dollar* Euro
Date % % % %
April 30, 2002 58.7 14.1 27.0 0.2
October 31, 2001 63.5 12.8 23.7 0.0
April 30, 2001 66.4 15.1 18.5 0.0
----------------------------------------------------------------------
* Includes Asian Yankee Bonds: 25.9% on April 30, 2002, 18.3% on
October 31, 2001, 16.7% on April 30, 2001.
Interest Rate Exposure
The table below shows the country composition
of the Fund's total investments as of April 30,
2002, according to interest rate risk compared
with the previous six and twelve months:
----------------------------------------------------------------
Asia
Australia (including NZ) United States Euro
Date % % % %
April 30, 2002 58.7 14.1 27.0 0.2
October 31, 2001 63.5 12.8 23.7 0.0
April 30, 2001 66.4 15.1 18.5 0.0
----------------------------------------------------------------
Aberdeen Asia-Pacific Income Fund, Inc. 9
Report of the Investment Manager (continued)
Maturity Composition
On April 30, 2002, the duration of the
portfolio was 4.2 years, compared with 3.6
years on October 31, 2001. The average maturity
of the portfolio was 7.3 years, compared with
5.7 years on October 31, 2001. The following
table shows the maturity composition of the
Fund's portfolio as of April 30, 2002, compared
with the previous six and twelve months:
-------------------------------------------------------------------------------
Under 3 Years 3 to 5 Years 5 to 10 Years 10 Years & Over
Date % % % %
April 30, 2002 27.4 18.3 43.2 11.1
October 31, 2001 36.6 17.6 39.0 6.8
April 30, 2001 41.5 13.1 35.1 10.3
-------------------------------------------------------------------------------
Sectoral Composition
The following shows the sectoral composition of
the portfolio as of April 30, 2002:
Domestic Currency Bonds US Dollar Bonds
Asia United States
(Including (Cash/
Australia New Zealand) Yankees Bonds) Euros
% % % % %
Government* 19.1 6.1 7.0 0.0 0.0
Semi Government** 20.3 0.6 2.9 0.0 0.0
Government Bank 1.7 0.0 2.6 0.0 0.0
Utility 2.2 0.3 1.6 0.0 0.0
Supranational 5.2 0.0 0.0 0.0 0.0
Bank/Finance Company*** 7.3 6.2 4.2 1.1 0.2
Corporate 2.9 0.9 7.6 0.0 0.0
-----------------------------------------------------------------------------------
* Includes government guaranteed debt.
** Includes state government guaranteed banks.
*** Includes cash held by the Fund's custodian and repurchase agreements.
10 Aberdeen Asia-Pacific Income Fund, Inc.
Market Review and Outlook
AUSTRALIA
Economy
To date, confidence in Australia's ability to
ride out the global recession has been boosted
by a number of indicators showing that the
economy's consumer spending and housing
investment is still strong and the jobs market
has enjoyed a tentative recovery. Data released
during the period revealed a 1.3% increase in
GDP in the fourth quarter of 2001, well above
the market consensus expectation of a 0.8%
rise. Importantly, a further run down in
inventories throughout the period is expected
to lead to further solid growth.
The Consumer Price Index rose 0.9% in the first
quarter of 2002, in line with market
expectations, with the annual pace of inflation
easing back to 2.9% from 3.1% in the fourth
quarter of 2001. Importantly, there is now a
clear moderation in core price pressures,
consistent with trends in the fundamental
determinants of inflation such as wages growth.
This, together with moderating upstream price
pressures, suggests that once the current
proliferation of one-off factors boosting
prices abates, headline inflation will also
decline.
The low level of interest rates means that
housing finance for construction and building
approvals could remain at relatively high
levels for some time. The composition of growth
is likely to shift again in 2002 as export
growth slows further, impacted by a weaker
global economy, while domestic consumption is
likely to remain supported by low interest
rates and positive real wages growth. Despite
the Australian stock market outperforming major
global markets in 2001, the domestic outlook is
clouded by the timing of a U.S. led economic
recovery.
Fixed Income
The benchmark 10-year bond yield rose to 6.08%
from 5.23% over the six months ended April 30,
2002. Bank bill yields also rose over the six
months, closing at 4.63%.
Currency
Increased certainty on successful global
reflation and signs of a global upturn lent
support to the Australian dollar during the
six-month period. The Investment Manager
retains the view that a target of 56 cents
against the U.S. dollar is
Aberdeen Asia-Pacific Income Fund, Inc. 11
Market Review and Outlook (continued)
achievable, The widening of the differential
between Australian and U.S. interest rates
continued, reaching levels not seen since the
mid 1990s. This is expected to be a key source
of support to the currency in the near term, as
will the relative strength of domestic
fundamentals. However, there can be no
assurance that the Investment Manager's
expectations will be met.
The Australian dollar rose over the period,
closing at U.S. $0.54 on April 30, 2002.
ASIA
Economies
Increasing signs of a bottoming in the global
economic cycle emerged during the six months
ended April 30, 2002. Measures of consumer and
business confidence in major economies which
collapsed post September stabilized and, in
some cases, bounced back strongly.
A major factor behind the sharp recovery in
sentiment has been much lower interest rates,
along with easier fiscal policy by central
banks and governments globally. Asian policy
makers, in line with the US Federal Reserve,
loosened monetary policy in a bid to boost
growth in their respective economies.
The financial position of the Asian region has
enabled the various markets to weather the
economic storm much better than was the case in
the 1997/98 Asian financial crisis. This is
reflected in the selective credit upgrades
which have been taking place.
The best performing economies in the region
(i.e. South Korea, India and China) are less
exposed to the global downturn, or have managed
to generate stronger internal demand through
aggressive policy relaxation. An upswing in
global production through the first half of
2002 is expected to prove particularly positive
for economies that have suffered most from the
downturn, such as Singapore and Taiwan.
12 Aberdeen Asia-Pacific Income Fund, Inc.
Market Review and Outlook (continued)
At the date of this report, the Investment
Manager has upgraded expected growth forecasts,
forecasting an Asia (ex-Japan) GDP growth of
5.1% in 2002, compared with 3.5% in 2001. This
reflects an expected earlier turn in the global
production and inventory cycle than was
forecast in December, 2001.
Domestic Bond and Currency Markets
Philippine bonds posted strong gains on the
back of an accommodative monetary policy. South
Korean bonds sold off on worries the Bank of
Korea may begin to hike interest rates as
inflationary pressures emerge. The yield curve
in Thailand steepened as the market began to
factor in large amounts of new issuance of
longer-dated bonds. South Korea remained the
Fund's favored domestic market for investment.
Asian Yankee (US$) Bond Market
Asian Yankees rallied over the six-month
period, with high-yield outperforming high-
grade by a large margin, as investors continued
to favor lower-rated credits in their quest for
yield. Moody's upgraded South Korea's debt
ratings by two notches, to A3. The Fund
increased its holdings of Yankees from 18.3% on
October 31, 2001, to 25.9% on April 30, 2002.
Aberdeen Asia-Pacific Income Fund, Inc. 13
Summary of Key Market Rates
The following table summarizes the movements of
key interest rates and currencies over the last
six and twelve month periods:
----------------------------------------------------------------
April 30 October 31 April 30
2002 2001 2001
----------------------------------------------------------------
Australia
90 day bank bills 4.63% 4.29% 4.89%
10 year bonds 6.08% 5.23% 5.78%
Australian Dollar $ 0.54 $ 0.50 $ 0.51
New Zealand
90 day bank bills 5.73% 4.96% 5.84%
10 year bonds 6.72% 6.18% 6.59%
NZ Dollar $ 0.45 $ 0.41 $ 0.41
South Korea
90 day T-bills 4.53% 4.37% 5.85%
10 year bonds 7.23% 6.85% 7.85%
South Korean Won* W 1294 W 1290 W 1315
Thailand
90 day deposits 2.00% 2.50% 2.50%
10 year bonds 5.62% 5.55% 5.05%
Thai Baht* B 43.3 B 44.7 B 45.6
Philippines
90 day T-bills 4.72% 11.07% 10.78%
10 year bonds 13.38% 17.80% 15.81%
Philippine Peso* P 50.6 P 52.0 P 51.4
Malaysia
90 day T-bills 2.73% 2.73% 3.45%
10 year bonds 4.70% 3.30% 4.50%
Malaysia Ringgit* R 3.8 R 3.8 R 3.8
Singapore
90 day T-bills 0.78% 0.60% 4.44%
10 year bonds 3.91% 2.97% 4.14%
Singapore Dollar* S$ 1.81 S$ 1.82 S$ 1.82
US$ Yankee Bonds**
South Korea 5.52% 5.54% 7.08%
Malaysia 6.18% 6.57% 7.47%
Philippines 7.79% 10.19% 10.58%
Hong Kong 5.93% 5.34% 6.66%
----------------------------------------------------------------
* 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 Asset Managers (C.I.) Limited
June 2002
14 Aberdeen Asia-Pacific Income Fund, Inc.
Portfolio of Investments (unaudited)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
LONG-TERM INVESTMENTS--124.1%
AUSTRALIA--75.0%
Government and Semi-Government--52.1%
Commonwealth of Australia--30.6%
A$
Australia Postal Corporation
22,000 6.00%, 3/25/09 $ 11,540,031
Commonwealth Bank of Australia
5,000 6.00%, 8/1/03 2,709,758
2,800 7.625%, 8/5/03 1,541,488
12,000 5.25%, 12/1/04 6,384,865
8,000 6.00%, 9/1/05 4,323,328
10,000 6.75%, 12/1/07 5,552,489
4,000 6.25%, 2/10/09 2,142,431
10,000 6.25%, 9/1/09 5,371,917
Commonwealth of Australia
45,000 9.50%, 8/15/03 25,491,069
40,000 9.00%, 9/15/04 23,169,612
45,450 7.50%, 7/15/05 25,775,142
10,000 10.00%, 2/15/06 6,163,351
50,000 6.75%, 11/15/06 27,974,401
71,000 10.00%, 10/15/07 45,492,309
77,000 8.75%, 8/15/08 47,389,710
108,000 7.50%, 9/15/09 62,980,347
95,000 5.75%, 6/15/11 49,717,233
60,000 6.50%, 5/15/13 32,953,597
---------------
386,673,078
---------------
New South Wales--4.4%
New South Wales Treasury Corporation
20,000 12.60%, 5/1/06 13,277,145
20,000 8.00%, 3/1/08 11,766,763
55,000 7.00%, 12/1/10 30,774,794
---------------
55,818,702
---------------
Queensland--4.3%
Queensland Treasury Corporation
20,000 6.50%, 6/14/05 10,977,456
15,200 6.00%, 7/14/09 8,062,113
40,000 6.00%, 6/14/11 20,939,457
10,000 6.00%, 10/14/15 5,106,858
17,000 6.00%, 6/14/21 8,560,623
---------------
53,646,507
---------------
South Australia--2.5%
South Australian Financing Authority
55,000 7.50%, 10/15/07 31,449,589
---------------
Tasmania--0.5%
A$
Tasmanian Public Finance Corporation
10,000 9.00%, 11/15/04 $ 5,780,714
---------------
Victoria--5.9%
Treasury Corporation of Victoria
36,000 12.50%, 10/15/03 21,266,752
10,000 6.00%, 11/15/06 5,385,690
20,500 10.25%, 11/15/06 12,878,096
25,000 7.50%, 8/15/08 14,357,016
40,000 5.50%, 9/15/10 20,320,905
---------------
74,208,459
---------------
Western Australia--3.9%
Western Australia Treasury Corporation
26,000 8.00%, 10/15/07 15,219,578
50,000 7.50%, 10/15/09 28,787,323
10,000 7.00%, 4/15/11 5,588,974
---------------
49,595,875
---------------
Total Australian government
and semi-government
(cost $740,529,683) 657,172,924
---------------
Eurobonds--19.3%
Banking and Finance--10.0%
ANZ Banking Corporation
10,000 6.75%, 3/22/12 5,266,973
Bank Austria AG
11,278 10.875%, 11/17/04 6,755,183
BHP Finance Limited
5,000 6.25%, 8/15/08 2,621,378
Commonwealth Bank of Australia
10,000 9.00%, 8/15/05 5,854,676
Dexia Municipal Agency
15,000 6.00%, 10/15/07 7,982,812
Federal National Mortgage Association Global
52,065 6.375%, 8/15/07 28,263,120
GE Capital Australia Limited
45,000 6.25%, 8/15/03 24,374,705
10,000 6.25%, 4/15/05 5,393,448
10,000 6.75%, 9/15/07 5,437,182
Jem Bonds Limited
10,000 9.00%, 7/15/06 5,938,681
KFW International Finance
5,513 9.125%, 7/26/05 3,234,802
Northern Territory Authority
8,000 6.50%, 7/15/05 4,240,468
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 15
Portfolio of Investments (unaudited) (continued)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
A$
5,000 10.03%, 8/9/05 $ 3,008,473
10,000 5.75%, 9/14/07 5,283,564
Principal Finance Global Fund
16,650 7.00%, 7/15/05 9,135,804
Progress Trust
2,000 6.00%, 10/15/30 1,078,609
Puma
5,000 7.47%, 2/21/33 2,732,471
----------------
126,602,349
----------------
Semi-Government and Local
Government--6.3%
New South Wales Treasury Corporation
7,000 10.50%, 12/7/04 4,173,461
34,000 12.60%, 5/1/06 22,603,295
7,000 9.25%, 6/20/06 4,111,617
40,000 8.00%, 3/1/08 23,455,950
Queensland Treasury Corporation
20,000 12.00%, 6/15/05 12,666,444
20,000 8.00%, 9/14/07 11,711,555
----------------
78,722,322
----------------
Supranational Global--3.0%
EFIC
2,000 11.00%, 12/29/04 1,207,581
Eurofima
8,170 9.875%, 1/17/07 5,062,766
30,000 6.50%, 8/22/11 16,190,692
European Investment Bank
19,000 6.00%, 7/15/05 10,269,790
Kingdom of Sweden
8,287 7.875%, 4/23/07 4,776,290
Quebec Province
1,500 5.75%, 2/15/06 795,378
----------------
38,302,497
----------------
Total Australian
eurobonds
(cost $277,509,590) 243,627,168
----------------
Corporate Bonds--3.6%
Banking and Finance--0.6%
DSL Bank
15,000 6.25%, 11/15/06 8,103,435
----------------
Floating Rate Notes*--0.0%
Crusade Trust
911 4.6133%, 7/10/29 488,514
----------------
Services--3.0%
A$
GPT Management Limited
10,000 6.50%, 10/15/07 $ 5,324,237
ING Office Finance
4,500 6.25%, 8/19/08 2,395,259
Melbourne Airport
2,000 6.75%, 6/15/08 1,083,463
Telstra Corporation
2,000 7.80%, 7/17/03 1,104,242
7,000 8.00%, 9/15/04 3,934,363
30,000 12.00%, 5/15/06 19,390,126
2,000 8.75%, 1/15/20 1,265,807
Westpac Banking Corporation
5,000 7.00%, 8/2/10 2,696,389
----------------
37,193,886
----------------
Total Australian
corporate bonds
(cost $53,578,406) 45,785,835
----------------
Total Australian
long-term investments
(cost $1,071,617,679) 946,585,927
----------------
EUROPEAN COMMUNITY--0.3%
Corporate Bonds--0.3%
EUR
Oversea - Chinese Banking Corporation
4,000 7.25%, 9/6/11
(cost $3,548,626) 3,766,472
----------------
HONG KONG--0.2%
Corporate Bonds--0.2%
HKD
GH Water Supply Holdings Limited
16,794 8.00%, 12/22/10
(cost $1,832,847) 1,959,498
----------------
JAPAN--0.9%
Government Bonds--0.9%
JPY
Inchon Metropolitan City
500,000 3.70%, 4/26/06 4,147,194
PTT Exploration & Production
900,000 3.35%, 9/19/07 7,447,427
----------------
Total Japan long-term
investments
(cost $11,925,954) 11,594,621
----------------
16 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Portfolio of Investments (unaudited) (continued)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
KOREA--5.5%
Government Bonds--5.5%
KRW
Korea Deposit Insurance Fund Bond
10,000,000 9.99%, 10/23/03 $ 8,170,472
19,000,000 8.72%, 3/12/04 15,520,961
2,000,000 15.00%, 7/3/04 1,835,169
Korea Treasury Bonds
10,000,000 5.88%, 7/6/03 7,759,360
10,000,000 7.70%, 8/16/03 7,930,914
19,170,000 7.15%, 4/11/06 15,096,903
16,674,000 6.91%, 7/18/11 12,646,753
----------------
Total Korea long-term
investments
(cost $70,585,301) 68,960,532
----------------
MALAYSIA--1.2%
Government Bonds--0.7%
MYR
Malaysia Government Bonds
17,300 5.00%, 4/15/05 4,784,991
11,390 6.844%, 10/1/09 3,450,983
----------------
Total Malaysia
government bonds
(cost $7,649,399) 8,235,974
----------------
Corporate Bonds--0.5%
British American Tobacco Corporation
9,000 7.10%, 11/2/04 2,546,973
YTL Corporation Berhad
13,000 8.50%, 6/29/04 3,729,249
----------------
Total Malaysia
corporate bonds
(cost $6,169,119) 6,276,222
----------------
Total Malaysia
long-term investments
(cost $13,818,518) 14,512,196
----------------
PHILIPPINES--0.7%
Government Bonds--0.7%
PHP
Philippine Government Bond
372,800 18.00%, 11/26/08
(cost $9,090,832) 9,314,651
----------------
SINGAPORE--1.2%
Government Bonds--1.2%
SGD
Singapore Government Bonds
6,000 4.00%, 2/1/05 3,489,307
20,872 4.625%, 7/1/10 12,194,583
----------------
Total Singapore
long-term investments
(cost $15,217,268) $ 15,683,890
----------------
THAILAND--2.0%
Government Bonds--2.0%
THB
Eastern Water Resources
115,000 9.00%, 7/22/04 2,953,984
Export-Import Bank of Thailand
80,000 7.25%, 5/6/04 2,002,190
Thailand Government Bonds
34,400 8.25%, 10/14/03 862,215
185,000 6.25%, 6/15/04 4,597,060
363,100 8.50%, 10/14/05 9,877,774
44,000 8.00%, 12/8/06 1,205,932
68,000 5.60%, 7/7/07 1,696,641
85,000 8.50%, 12/8/08 2,419,308
----------------
Total Thailand
long-term investments
(cost $25,882,506) 25,615,104
----------------
UNITED STATES--37.1%
Yankee Bonds--37.1%
USD
AES China Generating Co. Limited
5,200 10.125%, 12/15/06 4,888,000
Bangkok Bank Public Company
12,500 8.75%, 3/15/07 13,468,750
5,250 9.025%, 3/15/29 5,070,000
Bangkok Sentral Ng
4,000 8.60%, 6/15/27 3,397,575
Cable & Wireless Optus Finance
5,800 8.00%, 6/22/10 6,453,722
China Development Bank
4,000 8.25%, 5/15/09 4,505,240
China Telecom Limited
4,000 7.875%, 11/2/04 4,309,773
Cho Hung Bank
7,500 6.95%, 1/7/05 8,137,500
7,000 11.875%, 4/1/10 8,116,875
CKWB (Cayman Islands) Limited
14,200 7.625%, 7/5/11 14,400,554
CLP Power HK Finance
2,500 6.25%, 5/8/12 2,504,161
CNOOC Finance Limited
4,875 6.375%, 3/8/12 4,906,200
Dao Heng Bank Limited
4,500 7.75%, 1/24/07 4,793,856
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 17
Portfolio of Investments (unaudited) (continued)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
USD
DBS Capital Funding Corporation
7,000 7.657%, 3/15/11 $ 7,247,800
DBS Group Holdings
5,000 7.125%, 5/15/11 5,065,000
Embarc Ireland Limited(a)
5,500 7.70%, 8/18/03 4,385,150
Export-Import Bank Korea
2,000 6.50%, 11/15/06 2,048,600
6,000 7.10%, 3/15/07 6,337,680
Flextronics International Limited
2,500 9.875%, 7/1/10 2,700,000
GH Water Supply Holdings Limited
1,900 7.00%, 6/22/08 1,847,372
Globe Telecom Incorporated
9,000 13.00%, 8/1/09 10,597,500
3,250 9.75%, 4/15/12 3,367,975
Hanvit Bank
4,000 11.75%, 3/1/10 4,609,904
3,500 12.75%, 3/1/10 4,126,252
Hutchison Whampoa International Limited
6,000 7.00%, 2/16/11 6,161,217
Hysan Limited
6,500 7.00%, 2/1/12 6,512,188
Hyundai Motor Co. Limited
2,000 7.33%, 12/12/05 2,079,338
Industrial Finance Corporation
1,000 7.375%, 1/14/07 1,021,761
Jardine Strategic Finance Limited
3,500 6.375%, 11/8/11 3,403,468
Kia Motors Corporation
4,000 9.375%, 7/11/06 4,275,336
Kingdom of Thailand
2,700 7.07%, 9/30/13 2,533,256
Korea Development Bank
8,000 7.125%, 4/22/04 8,452,265
3,000 5.25%, 11/16/06 2,992,500
Korea Electric Power Corporation
9,000 7.75%, 4/1/13 9,588,240
12,500 7.00%, 2/1/27 12,838,625
Kowloon Canton Ry Corporation
18,000 8.00%, 3/15/10 20,111,040
Kumgang Korea Chemical Co. Limited
2,000 7.625%, 6/20/08 2,062,358
LG Caltex Oil Corporation
5,000 7.50%, 7/15/07 4,973,816
3,000 7.75%, 7/25/11 3,024,900
Malaysia
5,000 8.75%, 6/1/09 5,729,500
22,000 7.50%, 7/15/11 23,324,620
USD
MEI Euro Finance Limited
4,000 10.00%, 3/19/07 $ 3,946,000
National Power Corporation
7,000 8.40%, 12/15/16 5,976,901
Oversea - Chinese Banking Corporation
13,000 7.75%, 9/6/11 13,275,320
PCCW-HKTC Capital Limited
8,000 7.75%, 11/15/11 7,924,096
People's Republic of China
1,000 6.80%, 5/23/11 1,056,871
10,000 9.00%, 1/15/96 10,318,690
Petroliam Nasional Berhad
5,000 8.875%, 8/1/04 5,489,263
15,000 7.75%, 8/15/15 15,920,250
Philippine Long Distance Telcom
2,000 10.625%, 5/15/07 2,038,400
1,000 11.375%, 5/12/12 1,017,500
1,000 8.35%, 3/6/17 775,608
Pohang Iron & Steel Corporation
4,000 7.125%, 11/1/06 4,238,732
PTT Exploration & Production
6,500 7.625%, 10/1/06 6,927,750
Quezon Power (Philippines) Limited
4,137 8.86%, 6/15/17 3,109,473
Reliance Industries Limited
7,250 10.25%, 1/15/97 6,389,657
Republic of Philippines
6,000 8.375%, 3/12/09 6,075,000
2,500 9.875%, 3/16/10 2,709,375
14,100 9.375%, 1/18/17 14,720,400
2,000 6.50%*, 12/1/17 1,830,000
19,350 9.875%, 1/15/19 20,195,053
3,500 9.50%, 10/21/24 3,787,452
9,936 10.625%, 3/16/25 10,780,560
Republic of South Korea
14,500 8.875%, 4/15/08 16,878,000
Singapore Telecom
2,600 6.375%, 12/1/11 2,582,277
SK Corporation
3,900 7.50%, 5/31/06 4,117,829
Telekom Malaysia
3,000 7.875%, 8/1/25 2,960,700
Telekomunikasi Selular Finance Limited
4,000 9.75%, 4/30/07 4,010,000
Tenaga Nasional Berhad
7,750 7.625%, 4/1/11 7,533,000
5,000 7.50%, 11/1/25 4,590,000
14,000 7.50%, 1/15/96 11,949,000
18 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Portfolio of Investments (unaudited) (continued)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
USD
Thai Farmers Bank PLC
2,400 8.25%, 8/21/16 $ 2,314,080
Total Access Communication Public
7,000 8.375%, 11/4/06 6,872,600
----------------
Total United States
long-term investments
(cost $426,690,137) 468,679,704
----------------
Total long-term
investments
(cost $1,650,209,668) 1,566,672,595
----------------
SHORT-TERM INVESTMENTS--19.8%
AUSTRALIA--10.6%
Government and Semi-Government--0.9%
South Australia--0.9%
A$
South Australian Financing Authority
20,000 10.00%, 1/15/03
(cost $17,401,576) 11,111,690
----------------
Eurobonds--4.9%
Banking and Finance--3.4%
Banque National de Paris
14,000 9.00%, 8/13/02 7,599,542
Federal National Mortgage Association
Global
35,000 6.50%, 7/10/02 18,855,495
GE Capital Australia Limited
15,000 7.00%, 10/15/02 8,127,558
National Australia Bank Limited
10,000 6.25%, 10/15/02 5,402,599
State Bank of New South Wales
6,400 9.00%, 9/17/02 3,487,262
----------------
43,472,456
----------------
Supranational Global--1.5%
European Bank of Reconstruction &
Development
34,000 9.00%, 10/15/02 18,590,480
----------------
Total Australian
eurobonds
(cost $76,543,408) 62,062,936
----------------
Corporate Bonds--0.4%
Asset Backed--0.0%
FANMAC 25
216 10.33%, 6/15/02 116,541
----------------
Services--0.4%
A$
Telstra Corporation
8,000 11.50%, 10/15/02 $ 4,419,930
----------------
Total Australian
corporate bonds
(cost $6,249,058) 4,536,471
----------------
Demand Deposits--4.4%
Banque National de Paris Demand Deposit
103,138 4.00%, 5/1/02
(cost $54,353,228) 55,378,350
----------------
Total Australian
short-term investments
(cost $154,547,270) 133,089,447
----------------
KOREA--0.9%
Government Bonds--0.9%
KRW
Korea Monetary Stabilization Bond
4,409,000 7.75%, 7/19/02 3,431,664
Korea Treasury Bonds
10,000,000 7.10%, 11/10/02 7,818,863
----------------
Total Korea short-term
investments
(cost $11,587,575) 11,250,527
----------------
MALAYSIA--0.0%
Government Bonds--0.0%
MYR
Malaysia Government Bonds
2,000 4.427%, 3/31/03
(cost $524,537) 533,494
----------------
NEW ZEALAND--0.3%
Demand Deposits--0.3%
NZD
New Zealand Call Deposit
7,441 4.00%, 5/1/02
(cost $3,345,220) 3,329,904
----------------
SINGAPORE--0.1%
Government Bonds--0.1%
SGD
Singapore Government Bonds
1,200 3.00%, 11/1/02
(cost $692,132) 669,612
----------------
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 19
Portfolio of Investments (unaudited) (continued)
April 30, 2002
Principal
Amount
Local
Currency** Value
(000) Description (US$)
-------------------------------------------------------
Corporate Bonds--0.0%
SGD
General Motors Acceptance Corporation
1,000 3.95%, 4/25/03
(cost $580,136) $ 559,393
---------------
Total Singapore short-term
investments
(cost $1,272,268) 1,229,005
---------------
THAILAND--0.2%
Corporate Bonds--0.2%
THB
Advance Information Services PLC
96,000 6.25%, 3/31/03
(cost $2,533,260) 2,284,909
---------------
UNITED STATES--7.7%
Yankee Bonds--1.2%
USD
Embarc Ireland
6,900 7.01%, 6/28/02(b) 5,454,472
Industrial Bank of Korea
4,000 8.375%, 9/30/02 4,082,373
Republic of South Korea
5,500 8.75%, 4/15/03 5,809,375
---------------
Total United States yankee
bonds
(cost $15,726,622) 15,346,220
---------------
Repurchase Agreement--6.5%
USD
82,116 State Street Bank & Trust
Company 1.77% due 5/1/02 in
the amount of $82,119,982
(cost $82,116,000;
collateralized by United
States Treasury Bond 5.625%
due 5/15/08; value
including accrued interest
-$83,766,800) $ 82,116,000
---------------
Total United States
short-term investments
(cost $97,842,622) 97,462,220
---------------
Total short-term
investments
(cost $271,652,752) 249,179,506
---------------
--------------------------------------------------------------------------------
Total Investments--143.9% (cost $1,921,862,420) 1,815,852,101
Other assets in excess of liabilities--3.6% 46,457,159
Liquidation value of preferred stock--(47.5%) (600,000,000)
------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders--100% $ 1,262,309,260
------------------------------------------------------------------------------------------
Net asset value per common share ($1,262,309,260 / 264,698,700 shares of
common stock issued and outstanding) $4.77
------------------------------------------------------------------------------------------
------------------------------
* The interest rate reflected for floating rate notes is the rate in effect at
April 30, 2002.
** Portfolio securities are listed in currency in which they are traded.
A$--Australian dollar
EUR--Euro
HKD--Hong Kong Dollar
JPY--Japanese Yen
KRW--South Korean Won
MYR--Malaysian Ringgit
NZD--New Zealand dollar
PHP--Philippine peso
SGD--Singapore dollar
THB--Thailand Baht
USD--United States dollar
(a) Value of security is linked to the value of Government of Korea 7.70%,
8/16/03 and the movement of the South Korean won.
(b) Value of security is linked to the value of Korea Development Bank 7.01%,
6/2/02 and the movement of the South Korean won.
20 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Statement of Assets and Liabilities (unaudited)
April 30, 2002
Assets
Investments, at value (cost $1,921,862,420)............... $1,815,852,101
Foreign currency, at value (cost $25,272,180)............. 26,408,726
Cash...................................................... 9,144,984
Interest receivable....................................... 30,476,112
Unrealized appreciation on interest rate and currency
swaps................................................... 2,810,247
Unrealized appreciation on forward currency contracts..... 546,760
Other assets.............................................. 255,374
--------------
Total assets.......................................... 1,885,494,304
--------------
Liabilities
Payable for investments purchased......................... 9,634,369
Dividends payable-common stock............................ 9,264,454
Withholding taxes payable................................. 1,439,070
Accrued expenses and other liabilities.................... 1,190,369
Investment management fee payable......................... 790,029
Dividends payable-preferred stock......................... 712,013
Administration fee payable................................ 154,740
--------------
Total liabilities..................................... 23,185,044
--------------
Preferred stock ($.01 par value per share and $25,000
liquidation value per share applicable to 24,000 shares;
Note 5)................................................. 600,000,000
--------------
Net Assets Applicable to Common Shareholders.............. $1,262,309,260
--------------
--------------
Total net assets were composed of:
Common stock:
Par value ($.01 per share, applicable to 264,698,700
shares)............................................. $ 2,646,987
Paid-in capital in excess of par...................... 1,889,417,415
--------------
1,892,064,402
Distributions in excess of net investment income........ (80,598,479)
Accumulated net realized loss on investments............ (887,366)
Net unrealized appreciation on investments.............. 14,886,857
Accumulated net realized and unrealized foreign exchange
losses................................................ (563,156,154)
--------------
Net Assets Applicable to Common Shareholders.............. $1,262,309,260
--------------
--------------
Net asset value per common share: ($1,262,309,260 /
264,698,700 shares of common stock issued and
outstanding)............................................ $4.77
--------------
--------------
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 21
Statement of Operations (unaudited)
Six Months Ended April 30, 2002
Net Investment Income
Income
Interest (net of foreign withholding taxes of
$2,909,147)...................................... $ 63,828,932
------------------
Expenses
Investment management fee.......................... 4,935,300
Administration fee................................. 1,122,976
Custodian's fees and expenses...................... 1,050,000
Auction agent's fees and broker commissions........ 800,000
Reports to shareholders............................ 375,000
Directors' fees and expenses....................... 308,000
Transfer agent's fees and expenses................. 225,000
Legal fees and expenses............................ 225,000
Insurance expense.................................. 147,000
Independent accountant's fees and expenses......... 90,000
Investor relations fees and expenses............... 88,000
Miscellaneous...................................... 45,493
------------------
Total operating expenses........................... 9,411,769
------------------
Net investment income................................ 54,417,163
------------------
Realized and Unrealized Gains (Losses) on Investments
and Foreign Currencies
Net realized gain on:
Investment transactions............................ 369,343
------------------
Net change in unrealized appreciation (depreciation)
on:
Investments........................................ (57,675,488)
Interest rate and currency swaps................... 1,832,109
------------------
(55,843,379)
------------------
Net loss on investments.............................. (55,474,036)
------------------
Net decrease in total net assets from operations
before net foreign exchange gains.................. (1,056,873)
Net realized and unrealized foreign exchange gains... 97,106,203
Dividends on Preferred Stock......................... (6,207,876)
------------------
Net Increase In Net Assets Applicable to Common
Shareholders Resulting From Operations............... $ 89,841,454
------------------
------------------
22 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Statement of Cash Flows (unaudited)
Six Months Ended April 30, 2002
Increase (Decrease) in Cash (Including Foreign Currency)
Cash flows used for operating activities
Interest received (excluding premium amortization
of $4,401,239)................................... $ 69,778,265
Expenses paid...................................... (9,610,957)
Proceeds from sales of short-term portfolio
investments, net................................. 109,923,115
Purchases of long-term portfolio investments....... (282,629,667)
Proceeds from sales of long-term portfolio
investments...................................... 280,478,100
Dividends and distributions paid to preferred
shareholders..................................... (6,354,180)
Other.............................................. 166,517
------------------
Net cash provided from operating activities...... 161,751,193
------------------
Cash flows used for financing activities
Dividends and distributions paid to common
shareholders..................................... (63,811,310)
Cost of Fund shares reacquired in repurchase
program.......................................... (8,302,899)
------------------
Net cash used for financing activities........... (72,114,209)
------------------
Effect of changes in exchange rate................... (64,289,512)
------------------
Net increase in cash................................. 25,347,472
Cash at beginning of period........................ 10,206,238
------------------
Cash at end of period.............................. $ 35,553,710
------------------
------------------
Reconciliation of Net Increase in Total Net Assets
from Operations to Net Cash (Including Foreign
Currency) Provided From Operating Activities
Net increase in total net assets resulting from
operations......................................... $ 89,841,454
------------------
Decrease in investments............................ 110,850,755
Net realized gain on investment transactions....... (369,343)
Increase in unrealized appreciation on forward
currency contracts................................. (323,996)
Net change in unrealized appreciation on
investments...................................... 55,843,379
Net realized and unrealized foreign exchange
gains............................................ (97,106,203)
Decrease in interest receivable.................... 1,611,806
Net decrease in other assets....................... 166,517
Increase in payable for investments purchased...... 7,853,904
Decrease in accrued expenses and other
liabilities...................................... (262,900)
Dividends and distributions paid to preferred
shareholders..................................... (6,354,180)
------------------
Total adjustments................................ 71,909,739
------------------
Net cash provided from operating activities.......... $ 161,751,193
------------------
------------------
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 23
Statement of Changes in Net Assets (unaudited)
Six Months Year
Ended Ended
April 30, 2002 October 31, 2001
------------------ ------------------
Increase (Decrease) in Net Assets
Operations
Net investment income.......... $ 54,417,163 $ 139,812,296
Net realized gains on
investment transactions...... 369,343 3,740,038
Net change in unrealized
appreciation (depreciation)
on investments............... (55,843,379) 68,418,255
------------------ ------------------
Net increase/decrease in total
net assets resulting from
operations before net foreign
exchange gains (losses)...... (1,056,873) 211,970,589
Net realized and unrealized
foreign exchange gains
(losses)..................... 97,106,203 (73,152,895)
Dividends on Preferred Stock... (6,207,876) (29,663,738)
------------------ ------------------
Net increase in total net assets
resulting from operations...... 89,841,454 109,153,956
------------------ ------------------
Dividends from net investment
income
Common shares.................. (61,070,592) (58,797,328)
------------------ ------------------
Tax return of capital
distribution................... -- (85,450,731)
------------------ ------------------
Cost of Fund shares reacquired in
repurchase program (2,082,900
and 595,700 shares,
respectively).................. (8,302,899) (2,412,750)
------------------ ------------------
Total increase (decrease) in net
assets applicable to common
shareholders................... 20,467,963 (37,506,853)
Total Net Assets Applicable to
Common Shareholders
Beginning of period(a)........... 1,241,841,297 1,279,348,150
------------------ ------------------
End of period.................... $1,262,309,260 $1,241,841,297
------------------ ------------------
------------------ ------------------
(a) Amounts have been restated to conform to new requirements under
generally accepted accounting principles.
24 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Notes to Financial Statements (unaudited)
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 investment objective is to seek current income.
The Fund may also achieve incidental capital appreciation. The Fund will seek to
achieve its investment objective through investment in Asian debt securities and
Australian debt securities. There can be no assurance that the Fund will achieve
its 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.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Basis of Presentation:
The financial statements of the Fund are prepared in accordance with accounting
principles generally accepted in the United States of America, using the United
States dollar as both the functional and reporting currency.
Security Valuation:
Investments are stated at value. Investments for which market quotations are
readily available are valued based on prices provided by a pricing service or
the lower of the quotations from two leading brokers in the relevant debt
securities market, in the event that a price cannot be obtained by the pricing
service. Securities for which market quotations are not readily available are
valued at fair value using methods determined in good faith by or under the
direction of the Fund's Board of Directors.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
Repurchase Agreements:
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Fund's policy that its custodian takes possession of the
underlying collateral securities, the value of which exceeds the principal
amount of the repurchase transaction, including accrued interest. To the extent
that any repurchase transaction exceeds one business day, the collateral is
valued on a daily basis to determine its adequacy. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of the collateral by the
Fund may be delayed or limited.
Aberdeen Asia-Pacific Income Fund, Inc. 25
Notes to Financial Statements (unaudited) (continued)
Foreign Currency Translation:
Australian dollar ('A$'), New Zealand dollar ('NZD') and Asian currency amounts
are translated into United States dollars on the following basis:
(i) market value of investment securities, other assets and liabilities--at the
exchange rates at the end of the reporting periods;
(ii) purchases and sales of investment securities, income and expenses--at the
rates of exchange prevailing on the respective dates of such transactions.
The Fund isolates that portion of the results of operations arising as a result
of changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of the securities held at April 30, 2002.
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 periods.
Net realized and unrealized foreign exchange gains include realized foreign
exchange gains and losses from sales and maturities of portfolio securities,
sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions, the difference between the
amounts of interest, discount and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid
and changes in unrealized foreign exchange gains and losses in the value of
portfolio securities and other assets and liabilities arising as a result of
changes in the exchange rate. Accumulated net realized and unrealized foreign
exchange gains shown in the composition of net assets at April 30, 2002
represent foreign exchange gains for book purposes that have not yet been
recognized for tax purposes.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin, including
unanticipated movements in the value of the foreign currency relative to the
U.S. dollar.
The exchange rate at April 30, 2002 was US$.54 to A$1.00 for the Australian
dollar.
Securities Transactions and Investment Income:
Securities transactions are recorded on the trade date. Realized and unrealized
gains and losses from security and currency transactions are calculated on the
identified cost basis. Interest income is recorded on an accrual basis.
Discounts on short-term
26 Aberdeen Asia-Pacific Income Fund, Inc.
Notes to Financial Statements (unaudited) (continued)
securities are accreted over the life of the security. Original issue discount
is accreted over the life of the security based upon the effective yield. Market
discounts on long-term securities are recognized upon disposition. Expenses are
recorded on the accrual basis which may require the use of certain estimates by
management. Actual results could differ from those estimates.
Changes in Accounting Principles:
As required, effective November 1, 2001, the Fund adopted the provisions of the
AICPA Audit and Accounting Guide for Investment Companies and began amortizing
premiums on debt securities for financial statement reporting purposes. This
change had no impact on the net asset value of the Fund. Prior to November 1,
2001, the Fund did not amortize premiums on debt securities. Upon initial
adoption, the Fund was required to adjust the cost of its fixed-income
securities by the cumulative amounts of amortization that would have been
recognized had the amortization been in effect from the purchase date of each
holding. Adopting the accounting principle does not affect the Fund's net asset
value, but changes the classification of certain amounts between interest income
and realized and unrealized gain (loss) in the Statement of Operations. The
cumulative adjustment upon adoption resulted in an increase to distributions in
excess of net investment income and an increase to unrealized appreciation on
investments of $53,370,903. Because the Fund determines its required
distributions under Federal income tax laws, adoption of this principle does not
affect the amount or composition of distributions paid to shareholders.
In July 2001, a Securities and Exchange Commission staff announcement, Emerging
Issues Task Force Discussion ('EITF D-98'), Classification and Measurement of
Redeemable Securities, was issued providing new guidance related to the
presentation of preferred shares in financial statements. EITF D-98 is required
to be applied beginning with fiscal quarters ending after December 15, 2001 on a
retroactive basis, by restating the prior year's financial statements. In
accordance with the announcement, the Fund has presented its preferred shares
outside of net assets and has presented dividends to preferred shareholders (on
such preferred shares) in the net change in net assets attributable to common
shareholders resulting from operations for all periods presented. Therefore,
beginning net assets attributable to common shareholders have been restated and
dividend activity related to preferred shares has been reclassified from the
capital activity in the statements of changes in net assets and the financial
highlights to operating activity. The application of EITF
Aberdeen Asia-Pacific Income Fund, Inc. 27
Notes to Financial Statements (unaudited) (continued)
D-98 related entirely to presentation and had no impact on net asset value or
the allocation of net income or capital gains or losses to common shareholders.
Forward Currency Contracts:
A forward currency contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated forward rate. The Fund enters into
forward currency contracts in order to hedge its exposure to changes in foreign
currency exchange rates on its foreign portfolio holdings or on specific
receivables and payables denominated in a foreign currency. The contracts are
valued daily at current exchange rates and any unrealized gain or loss is
included in net unrealized appreciation or depreciation on investments. Gain or
loss is realized on the settlement date of the contract equal to the difference
between the settlement value of the original and renegotiated forward contracts.
This gain or loss, if any, is included in net realized gain (loss) on foreign
currency transactions. Risks may arise upon entering into these contracts from
the potential inability of the counterparties to meet the terms of their
contracts.
Financial Futures Contracts:
A financial futures contract is an agreement to purchase (long) or sell (short)
an agreed amount of securities or commodities at a set price for delivery on a
future date. Upon entering into a financial 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 amount is known as the
'initial margin.' Subsequent payments, known as 'variation margin,' are made or
received by the Fund when the contract expires or is closed, depending on the
daily fluctuations in the value of the underlying security or commodity. Such
variation margin is recorded for financial statement purposes on a daily basis
as unrealized gain or loss. When the contract expires or is closed, the gain or
loss is realized and is presented in the statement of operations as net realized
gain (loss) on financial futures contracts.
The Fund invests in financial futures contracts in order to hedge existing
portfolio securities, or securities the Fund intends to purchase, against
fluctuations in value. Under a variety of circumstances, the Fund may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts and the underlying
assets.
28 Aberdeen Asia-Pacific Income Fund, Inc.
Notes to Financial Statements (unaudited) (continued)
Securities Lending:
The Fund's investment policies permit the Fund to lend to banks and
broker-dealers, portfolio securities with an aggregate market value of up to 15%
of the Fund's total assets when it deems advisable. Pursuant to a securities
lending agreement ('Agreement') between the Fund and State Street Bank and Trust
Company ('State Street'), any loans made under the Agreement must be secured by
collateral (consisting of any combination of cash, U.S. Government securities,
irrevocable letters of credit or other hiqh-quality debt securities) in an
amount at least equal (on a daily marked-to-market basis) to the current market
value of the securities loaned. A proposed amendment to the Agreement provides
that the cash collateral may be invested in State Street Navigator Securities
Lending Trust, an affiliate of State Street, and proceeds from this investment
would be divided 70% as to the Fund and 30% as to State Street.
The Agreement also provides that the Fund may terminate the loans at any time
and obtain the return of the securities, and that the Fund will continue to
receive any interest or dividends obtained on any of the loaned securities and
will continue to have voting rights with respect to the securities.
In the event the Fund lends its portfolio securities, the Fund may be exposed to
counterparty risk, which may result in the delay in recovery of the loaned
securities or possible loss of right in the collateral should the borrower
become insolvent. However, under the proposed amendment to the Agreement, State
Street will indemnify the Fund in the case of borrower default.
Interest Rate and Currency Swap:
An interest rate and currency swap is an agreement between two parties which
involves exchanging principal and fixed rate interest payments in one currency
for principal and fixed rate interest payments in another currency for a
specified period of time. Interest rate and currency swaps involve the accrual
and exchange of interest payments between the parties.
During the term of the swap, changes in the value of the swap are recognized as
unrealized gains or losses by 'marking-to-market' to reflect the market value of
the swap. When the swap is terminated, the Fund will record a realized gain or
loss equal to the difference, if any, between the proceeds from (or cost of) the
closing transaction and the Fund's basis in the contract.
Aberdeen Asia-Pacific Income Fund, Inc. 29
Notes to Financial Statements (unaudited) (continued)
The Fund is exposed to credit loss in the event of non-performance by the other
party to the currency rate swap. However, the Fund does not anticipate
non-performance by any counterparty.
Dividends and Distributions:
It is the Fund's current policy to pay dividends 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 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 common shareholders are recorded
on the ex-dividend date. Dividends and distributions to preferred shareholders
are accrued on a weekly basis and are determined as described in Note 4.
Income distributions and capital and currency gains distributions are determined
in accordance with income tax regulations which may differ from accounting
principles generally accepted in the United States of America. These differences
are primarily due to differing treatments for foreign currencies, loss deferrals
and recognition of market discount.
Taxes:
For federal income and excise tax purposes, the Fund's transactions are
accounted for using the Australian dollar as the functional currency.
Accordingly, only realized currency gains and losses resulting from the
repatriation of Australian dollars into United States dollars or transactions in
New Zealand dollars or Asian country currencies are recognized for tax purposes.
No provision has been made for United States income taxes because it is the
Fund's policy to continue to meet the requirements of the United States Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its taxable income to shareholders. The chart below summarizes the
withholding tax rates in effect on interest income at the period end.
Withholding
Country Tax Rate
-------------------------------------
Australia 10%
Japan 10
Korea 12
Malaysia 30
New Zealand 10
30 Aberdeen Asia-Pacific Income Fund, Inc.
Notes to Financial Statements (unaudited) (continued)
Withholding
Country Tax Rate
-------------------------------------
Philippines 15%
Singapore 30
Thailand 10
Cash Flow Information:
The Fund invests in securities and makes distributions to common shareholders
from net investment income and net realized gains from investment and currency
transactions, and to the extent necessary, from return of paid-in capital. These
distributions are paid in cash or are reinvested at the discretion of
shareholders. These activities are reported in the Statement 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.
Note 2. Agreements
Aberdeen Asset Managers (C.I.) Limited (the 'Investment Manager') serves as
investment manager to the Fund and Aberdeen Asset Management Limited (the
'Investment Adviser') serves as investment adviser to the Fund pursuant to a
management agreement and an advisory agreement, respectively, each dated
December 22, 2000. The Investment Manager and the Investment 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 management agreement provides the Investment Manager with a fee, computed
weekly and payable monthly, at the following annual rates: 0.65% of the Fund's
average weekly total net assets of common and preferred shareholders up to $200
million, 0.60% of such assets between $200 million and $500 million, 0.55% of
such assets between $500 million and $900 million, 0.50% of such assets between
$900 million and $1,750 million and 0.45% of such assets in excess of $1,750
million.
The Investment Manager pays fees to the Investment Adviser for its services
rendered. The Investment Manager informed the Fund that it paid $2,137,975 to
the Investment Adviser during the period ended April 30, 2002.
Aberdeen Asia-Pacific Income Fund, Inc. 31
Notes to Financial Statements (unaudited) (continued)
Prudential Investments LLC (formerly known as Prudential Investments Fund
Management LLC) (the 'Administrator') serves as administrator to the Fund
pursuant to an agreement dated December 9, 1988. The administration agreement
provides the Administrator with a fee at the annual rate of 0.15% of the Fund's
average weekly total net assets of common and preferred shareholders up to $900
million, 0.10% of such assets between $900 million and $1,750 million and 0.07%
of such assets in excess of $1,750 million. During the six months, the
Administrator remitted $120,000 to the Investment Manager for certain compliance
related administrative services provided.
Under terms of an Investor Relations Services Agreement, Aberdeen Asset
Management ('Aberdeen'), a wholly owned subsidiary of the Investment Manager,
serves as the Fund's investor relations services provider. This agreement
provides Aberdeen with a monthly retainer fee of $10,000 plus out-of-pocket
expenses. During the six months ended April 30, 2002, the Fund incurred fees of
approximately $60,000 for the services of Aberdeen. As of April 30, 2002,
$10,000 of this amount was due to Aberdeen. Investor relations fees and expenses
in the Statement of Operations include certain out-of-pocket expenses.
Note 3. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2002 aggregated $348,280,447 and
$280,478,100, respectively.
The Fund entered into two interest rate and foreign currency swaps on February
16, 1999. Under the terms of the first swap, the Fund receives interest at a
rate of 11.50% based on a notional amount of KRW5,124,367,250 and pays interest
at a rate of 3.70% based on a notional amount of JPY500,000,000. Under the terms
of the second swap, the Fund receives interest at a rate of 13.05% based on a
notional amount of THB290,920,192 and pays interest at a rate of 3.35% based on
a notional amount of JPY900,000,000. Net receipts or payments of such amounts
are exchanged semi-annually. At April 30, 2002 the unrealized appreciation on
currency swaps was $2,892,540. The swaps are scheduled to terminate on April 26,
2006.
The Fund entered into an interest rate swap agreement on September 1, 2000.
Under the terms of the agreement, the Fund receives a floating rate of interest
based on a notional value of SGD 4,000,000 and pays interest at a fixed rate of
4.835%
32 Aberdeen Asia-Pacific Income Fund, Inc.
Notes to Financial Statements (unaudited) (continued)
based on a notional value of SGD 4,000,000. Net receipts of payments of such
amounts are exchanged semi-annually. At April 30, 2002 the unrealized
depreciation on this interest rate swap was $150,121. The swap is scheduled to
terminate on September 6, 2010.
Net interest income of $426,341 on interest rate and currency swaps during the
period is included in interest income in the Statement of Operations.
At April 30, 2002 the Fund had outstanding forward currency contracts to buy and
sell foreign currency as follows:
Value at
Foreign Currency Settlement Current
Sale Contract Date Receivable Value Appreciation
--------------------------- --------------- ----------- --------------
Thailand Baht
settlement date 6/18/02 $ 7,100,000 $ 7,099,935 $ 65
--------------- ----------- --------------
--------------- ----------- --------------
Value at
Foreign Currency Settlement Current
Purchase Contract Date Payable Value Appreciation
--------------------------- --------------- ----------- --------------
Indian Rupee
settlement date 5/6/02 $ 6,867,000 $ 6,928,729 $ 61,729
Philippine Peso
settlement date 5/23/02 3,660,000 3,698,291 38,291
settlement date 6/26/02 6,306,264 6,381,893 75,629
settlement date 7/29/02 10,400,000 10,429,525 29,525
South Korean Won
settlement date 6/28/02 16,700,000 16,780,326 80,326
settlement date 7/9/02 6,500,000 6,745,578 245,578
Taiwan Dollar
settlement date 7/25/02 7,500,000 7,501,081 1,081
Thailand Baht
settlement date 6/18/02 7,100,000 7,109,779 9,779
Yuan Renminbi
settlement date 7/24/02 3,680,000 3,684,757 4,757
--------------- ----------- --------------
$68,713,264 $69,259,959 $546,695
--------------- ----------- --------------
--------------- ----------- --------------
Aberdeen Asia-Pacific Income Fund, Inc. 33
Notes to Financial Statements (unaudited) (continued)
Note 4. Tax Information
The United States federal income tax basis of the Fund's investments and the net
unrealized appreciation as of April 30, 2002 were as follows:
Net
Tax Basis Unrealized
of Investments Appreciation Depreciation Depreciation
-------------- ------------ ------------ ------------
$1,818,513,877 $41,121,460 $(43,783,236) $(2,661,776)
The difference between book basis and tax basis was primarily attributable to
deferred losses on wash sales and methodologies governing currency conversion.
Note 5. Capital
There are 400 million shares of common stock authorized. At April 30, 2002,
there were 264,698,700 common shares issued and outstanding.
The Preferred Stock shareholders have rights as determined by the Board of
Directors. The 24,000 shares of Auction Market Preferred Stock ('Preferred
Stock') outstanding consist of nine series as follows: Series A--3,000 shares,
Series B--3,000 shares, Series C--2,000 shares, Series D--4,000 shares, Series
E--2,000 shares, Series F--2,000 shares, Series G--3,000 shares, Series H--2,500
shares and Series I--2,500 shares.
Dividends on each series of Preferred Stock are cumulative at a rate established
at the initial public offering and are typically reset every 28 days for Series
A through D and every seven days for Series E through I based on the results of
an auction. Dividend rates ranged from 2.7% to 1.7% during the six months ended
April 30, 2002. Under the Investment Company Act of 1940, the Fund may not
declare dividends or make other distributions on shares of common stock or
purchase any such shares if, at the time of the declaration, distribution or
purchase, asset coverage with respect to the outstanding Preferred Stock would
be less than 200%.
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at liquidation value plus any accumulated but
unpaid dividends. The Preferred Stock is also subject to mandatory redemption at
liquidation value plus any accumulated but unpaid dividends if certain
requirements relating to the composition of the assets and liabilities of the
Fund as set forth in the Articles of Incorporation are not satisfied.
34 Aberdeen Asia-Pacific Income Fund, Inc.
Notes to Financial Statements (unaudited) (continued)
The holders of Preferred Stock have voting rights equal to the holders of common
stock (one vote per share) and will vote together with holders of shares of
common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Fund's directors.
On March 1, 2001, the Board of Directors approved a stock repurchase program.
The stock repurchase program allows the Fund to repurchase up to 10% of its
outstanding common stock in the open market during any 12 month period if and
when the discount to net asset value is at least 10%. Through April 30, 2002,
there had been 2,678,600 shares repurchased and cancelled under this program.
Note 6. Dividends and Distributions
On May 13, 2002 and June 19, 2002, the Board of Directors declared a monthly
distribution of 3.5 cents per share payable on June 7, 2002 and July 12, 2002 to
all shareholders of record as of May 31, 2002 and June 28, 2002 (ex-dividend
dates May 29, 2002 and June 26, 2002, respectively).
Subsequent to April 30, 2002, dividends and distributions declared and paid on
Preferred Stock totaled approximately $1,053,210 for the nine outstanding
preferred share series in the aggregate through June 21, 2002.
Aberdeen Asia-Pacific Income Fund, Inc. 35
Financial Highlights (unaudited)
Six Months
Ended
April 30, 2002
------------------
PER SHARE OPERATING PERFORMANCE*:
Net asset value per common share, beginning of period...... $ 4.65
----------
Net investment income...................................... .20
Net realized and unrealized gain (loss) on investments and
foreign currencies....................................... .16
----------
Total from investment operations.......................... .36
----------
Dividends from net investment income to preferred
shareholders............................................. (.02)
Dividends from net investment income to common
shareholders............................................. (.22)
Tax return of capital distribution......................... --
Distributions from net capital and currency gains to
preferred shareholders................................... --
Distributions from net capital and currency gains to common
shareholders............................................. --
----------
Total dividends and distributions......................... (.24)
----------
Capital reduction with respect to issuance of shares....... --
Increase resulting from Fund share repurchase.............. --PoundPound
----------
Net asset value per common share, end of period............ $ 4.77
----------
----------
Market price per common share, end of period............... $ 4.45
----------
----------
TOTAL INVESTMENT RETURN BASED OND:
Market value............................................... 17.02%
Net asset value............................................ 8.44%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS/SUPPLEMENTAL DATAPound:
ExpensesDD................................................. 1.53%
Net investment income available to common shareholders..... 7.85%
Portfolio turnover rate.................................... 18%
Net assets of common shareholders, end of period (000
omitted)................................................. $ 1,262,309
Average net assets of common shareholders (000 omitted).... $ 1,237,975
Senior securities (preferred stock) outstanding (000
omitted)................................................. $ 600,000
Asset coverage of preferred stock at period-end............ 312%
------------------------------
* Calculated based upon average shares outstanding during the period.
D Total investment return is calculated assuming a purchase of common stock on the first day
and a sale on the last day of each period reported. Dividends and distributions are
assumed, for purposes of this calculation, to be reinvested at prices obtained under the
Fund's dividend reinvestment plan. Total investment return does not reflect brokerage
commissions.
DD Includes expenses of both preferred and common stock.
Pound 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. Expense ratios relative to the average net assets of common and
preferred shareholders are 1.03%, 1.03%, .98%, .95%, .95% and .94%, respectively. Ratios
to average net assets of net investment income before preferred stock dividends are 8.86%,
10.76%, 10.52%, 9.79%, 10.72% and 9.17%, respectively. Ratios to average net assets of
preferred stock dividends are 1.01%, 2.28%, 2.30%, 1.45%, 2.21% and 1.78%, respectively.
PoundPound Less than $0.005 per share.
36 Aberdeen Asia-Pacific Income Fund, Inc. See Notes to Financial Statements.
Financial Highlights (unaudited) (continued)
Year Ended October 31,
---------------------------------------------------------------------------
2001 2000 1999 1998 1997
----------- ----------- ----------- ----------- -----------
$ 4.78 $ 6.20 $ 7.33 $ 8.85 $ 9.93
----------- ----------- ----------- ----------- -----------
.53 .60 .67 .82 .87
(.01) (1.28) (.35) (1.45) (.96)
----------- ----------- ----------- ----------- -----------
.52 (.68) .32 (.63) (.09)
----------- ----------- ----------- ----------- -----------
(.11) (.13) (.10) (.17) (.17)
(.22) (.39) (.63) (.51) (.82)
(.32) (.21) -- -- --
-- (.01) (.02) -- --
-- -- (.09) (.21) --
----------- ----------- ----------- ----------- -----------
(.65) (.74) (.84) (.89) (.99)
----------- ----------- ----------- ----------- -----------
-- -- (.61) -- --
-- dPound -- -- -- --
----------- ----------- ----------- ----------- -----------
$ 4.65 $ 4.78 $ 6.20 $ 7.33 $ 8.85
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
$ 4.02 $ 3.86 $ 6.00 $ 5.625 $ 8.125
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
18.74% (26.73)% 20.96% (23.19)% (0.42)%
10.91% (12.19)% (5.15)% (8.10)% (2.37)%
1.51% 1.36% 1.26% 1.47% 1.25%
8.48% 8.22% 8.34% 8.51% 7.39%
47% 64% 89% 61% 85%
$ 1,241,841 $ 1,279,346 $ 1,657,365 $ 1,428,142 $ 1,723,025
$ 1,299,044 $ 1,530,638 $ 1,775,894 $ 1,485,690 $ 1,848,378
$ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000
308% 316% 376% 338% 387%
NOTE: Contained above is operating performance for a share of common stock outstanding, total
investment return, ratios to average net assets of common shareholders and other
supplemental data for each of the years indicated. This information has been determined
based upon financial information provided in the financial statements and market value
data for the Fund's common shares.
See Notes to Financial Statements. Aberdeen Asia-Pacific Income Fund, Inc. 37
Supplemental Proxy Information (unaudited)
The Annual Meeting of Shareholders of Aberdeen Asia-Pacific Income Fund, Inc.
was held on March 21, 2002 at the offices of Prudential Securities Incorporated,
One Seaport Plaza, New York, New York. The meeting was held for the following
purposes:
(1) To elect four Directors to serve as Class II Directors for a three-year
term expiring in 2005:
- Howard A. Knight
- P. Gerald Malone
- Peter D. Sacks
- Brian M. Sherman
To elect two directors to represent the interests of the holders of pre-
(2)
ferred stock for the ensuing year:
- Dr. Anton E. Schrafl
- John T. Sheehy
Directors whose term of office continued beyond this meeting are as
follows: Anthony E. Aaronson, David L. Elsum, Martin J. Gilbert, Beverly
Hendry, Neville J. Miles, Peter J. O'Connell and William J. Potter.
The results of the proxy solicitation on the above matters were as follows:
(1) Election of Class I Directors:
Director Votes for Votes Withheld
-------------------- ------------- --------------
Howard A. Knight 226,663,495 9,825,243
P. Gerald Malone 226,672,755 9,815,983
Peter D. Sacks 226,791,926 9,696,812
Brian M. Sherman 226,687,875 9,800,864
(2) Election of Preferred Directors:
Director Votes for Votes Withheld
-------------------- ------------- --------------
Dr. Anton E. Schrafl 19,334 67
John T. Sheehy 19,334 67
38 Aberdeen Asia Pacific Income Fund, Inc.
Other Information (unaudited)
Dividend Reinvestment and Cash Purchase Plan.--Shareholders may elect to have
all distributions of dividends and capital gains automatically reinvested in
Fund shares pursuant to the Fund's Dividend Reinvestment and Cash Purchase Plan
(the 'Plan'). Generally, shareholders who do not participate in the Plan will
receive all distributions in cash paid by check in United States dollars mailed
directly to the shareholders of record (or if the shares are held in street or
other nominee name, then to the nominee) by the custodian, as dividend
disbursing agent. Shareholders who wish to participate in the Plan should
contact the Fund at (800) 451-6788.
State Street Bank & Trust Co. (the 'Plan Agent') serves as agent for the
shareholders in administering the Plan. Dividends and capital gains
distributions payable to Plan participants will be promptly invested. If the
Fund declares an income dividend or capital gains distribution payable in stock
to shareholders who are not Plan participants, then Plan participants will
receive that dividend or distribution in newly issued shares on identical terms
and conditions.
In every other case Plan participants will receive shares on the following
basis: If the market price of the Fund's common stock plus any brokerage
commission is equal to or exceeds net asset value, Plan participants will
receive newly issued shares valued at the greater of net asset value or 95% of
current market price. If, on the other hand, the net asset value plus any
brokerage commission exceeds the market price, the Plan Agent will buy shares in
the open market. If the market price plus any applicable brokerage commission
exceeds net asset value before the Plan Agent has completed its purchases, the
Fund will issue new shares to complete the program. All reinvestments are in
full and fractional shares carried to three decimal places.
There is no charge to participants for reinvesting dividends or capital gain
distributions, except for certain brokerage commissions, as described below. The
Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Fund. There will be no brokerage commissions
charged with respect to shares issued directly by the Fund. However, each
participant will pay a pro rata share of brokerage commissions incurred with
respect to the Plan Agent's open market purchases in connection with the
reinvestment of dividends and distributions. The automatic reinvestment of
dividends and distributions will not relieve participants of any federal income
tax that may be payable on such dividends and distributions.
Aberdeen Asia Pacific Income Fund, Inc. 39
Other Information (unaudited) (continued)
The Plan also allows participants to make optional cash investments of at least
$100 in Fund shares as frequently as monthly through the Plan Agent on the open
market. Participants must pay a service fee of $0.75 for each investment and a
pro rata share of the brokerage commissions.
The Fund reserves the right to amend or terminate the Plan either in full or
partially upon 90 days' written or telephone notice to shareholders of the Fund.
Participants in the Plan may withdraw some or all of their shares from the Plan
upon written notice to the Plan Agent and will receive certificates for whole
Shares and cash for fractional Shares. In the alternative, by giving proper
notice to the Plan Agent, participants may receive cash in lieu of shares in an
amount which is reduced by brokerage commissions in connection with the sale of
shares and a $2.50 service fee.
All correspondence concerning the Plan should be directed to the Plan Agent,
State Street Bank & Trust Company, P.O. Box 8200, Boston, MA 02266-8200.
40 Aberdeen Asia Pacific Income Fund, Inc.
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Directors Officers
Martin J. Gilbert, Chairman Hugh Young, President
Anthony E. Aaronson Michael Karagianis, Vice President
David L. Elsum Christian Pittard, Treasurer and
Beverley Hendry Assistant Secretary
Howard A. Knight Roy M. Randall, Secretary
P. Gerald Malone James Blair, Assistant Vice President
Neville J. Miles Beverley Hendry, Assistant Treasurer
Peter J. O'Connell Timothy Sullivan, Assistant Treasurer
William J. Potter Simon Bignell, Assistant Treasurer
Peter D. Sacks Jack R. Benintende, Assistant Treasurer
Anton E. Schrafl Allan S. Mostoff, Assistant Secretary
John T. Sheehy Margaret A. Bancroft, Assistant Secretary
Brian M. Sherman Sander M. Bieber, Assistant Secretary
The accompanying Financial Statements as of
April 30, 2002 were not audited
and accordingly, no opinion is expressed
thereon.
This report, including the Financial Statements
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.
Notice is hereby given in accordance with
Section 23(c) of the Investment Company Act of
1940 that the Fund may purchase, from time to
time, shares of its common stock in the open
market.
Aberdeen Asia Pacific Income Fund, Inc.
Corporate Information
Investment Manager Aberdeen Asset Managers (C.I.) Limited
P.O. Box 578, 17 Bond Street
St. Helier, Jersey JE45XB Channel Islands
Investment Advisor Aberdeen Asset Management Limited
Level 6, 201 Kent Street
Sydney, NSW 2000, Australia
Administrator Prudential Investments LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ 07102-4077
Custodian & Transfer Agent State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Auction Agent Deutsche Bank
Four Albany Street
New York, NY 10006
Independent Accountants PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel Dechert
1775 Eye Street, N.W.
Washington, DC 20006
Stikeman Elliott
Level 40, Chifley Tower
Two Chifley Square
Sydney, NSW 2000, Australia
Investor Relations Aberdeen Asset Management
45 Broadway, 31st Floor
New York, NY 10006
(800) 522-5465 or (212) 968-8800
or e-mail us at:
InvestorRelations@aberdeen-asset.com
(LOGO)
Aberdeen
ASSET MANAGERS
Aberdeen Asset Managers (C.I.) Limited
The common shares of Aberdeen Asia-Pacific Income Fund, Inc. are
traded on the American Stock Exchange and on the Pacific Stock Exchange
under the symbol "FAX". Information about the Fund's net aset value
and market price is published weekly in Barron's and in the Monday edition
of The Wall Street Journal.
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