PHILADELPHIA, Sept. 10, 2020 /PRNewswire/ -- Aberdeen Income Credit Strategies Fund (NYSE: ACP) (the "Fund"), a closed-end fund, announced today that it has reduced its monthly distribution from US $0.12 per share to $0.10 per share, commencing with the distribution payable on September 30, 2020 to shareholders of record as of September 21, 2020 (ex-dividend date September 18, 2020). The Fund believes this remains an attractive distribution yield on the share price as of August 31, 2020 of 11.96% in comparison with other peer group high yield closed end funds and global high yield index yield of 5.40%.

The Fund intends to maintain this distribution level for at least the next 12 months unless there is significant and unforeseen changes in market conditions or an economic shock like the COVID-19 pandemic. This represents a change in the annualized distribution rate from 13.70% to 11.41% based on NAV as of September 8, 2020.

The Fund's distribution policy is to provide investors with a stable monthly distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital, which is a non-taxable return of capital.  The Fund's monthly distribution has remained unchanged since January 2012. The current reduction in distribution takes into account many factors, including, but not limited to, current and expected earnings and Aberdeen Asset Managers Limited, the Investment Adviser, economic and market outlook. The Investment Adviser has advised the Fund Board that it believes that the reduced monthly distribution is more consistent with sustainable earnings of the Fund.

An investor call with the portfolio management team will be held to provide an update and answer investor questions. To register for the call, please check the Fund's website at  

The Investment Adviser's Market Outlook

We continue to be constructive on the high yield asset class because we believe governments and central banks will continue to provide support where needed. Economic data globally, as well as corporate earnings , are generally coming in ahead of expectations which is also supporting asset prices. Until inflation expectations begin to materially increase, which is not something we expect anytime soon, there is little reason to believe accommodative behaviour from central banks will be withdrawn. This is the biggest long term threat we see to risk assets. In the shorter term, volatility could stem from the US election result, a resumption of trade antagonism, or a second wave of COVID-19. Nevertheless, the medium term direction of travel remains to the upside as these threats are eventually dwarfed by the powerful combination of extraordinary monetary and fiscal stimulus.  

In January 2021, 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 2020 calendar year.   

Investment Advisor

The Fund is managed and advised by Aberdeen Asset Managers Limited. The Fund's shares trade on the NYSE under the symbol "ACP". 

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution. 

In the United States, Aberdeen Standard Investments is the marketing name for the following affiliated, registered investment advisers:  Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd., Aberdeen Standard Investments Australia Ltd., Aberdeen Standard Investments (Asia) Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Standard Life Investments (Corporate Funds) Ltd.

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective.

If you wish to receive this information electronically, please contact

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