Abrdn Income Credit Strategies Fund (NYSE:ACP) is a closed-end management investment company that seeks to provide high current income and capital appreciation. The fund pursues its objectives by investing primarily in a diversified portfolio of corporate debt securities across the credit spectrum, including investment-grade and below-investment-grade (high-yield) bonds. It utilizes leverage through preferred shares, borrowings or other instruments to enhance income potential, subject to regulatory limits and prudent risk management.
The fund’s investment process is driven by fundamental credit research conducted by Abrdn’s global fixed-income team. Portfolio managers employ a bottom-up security selection approach, complemented by macroeconomic and sector-level analysis. They focus on issuers with resilient balance sheets, attractive yield spreads relative to benchmarks, and favorable risk-reward profiles. In addition to traditional bonds, the fund may allocate to structured credit products, leveraged loans and other income-oriented securities to diversify sources of return.
Geographically, the fund maintains a predominantly U.S. corporate credit emphasis while retaining the flexibility to invest in developed and emerging markets when attractive opportunities arise. Currency exposures are generally hedged back to the U.S. dollar, thereby concentrating performance drivers on credit fundamentals and interest-rate movements. The fund’s diversified holdings span multiple sectors, including financials, industrials, energy and communications, enabling the portfolio to adapt to shifting market conditions and yield environments.
Founded in 2017 under the AllianceBernstein umbrella, the fund transitioned to the Abrdn platform following the rebranding of Standard Life Aberdeen to abrdn plc in 2021. It benefits from the resources and risk-management framework of abrdn’s global asset management organization. The fund’s day-to-day management is overseen by a team of senior credit specialists, supported by a broader investment research infrastructure. Through active management, the Abrdn Income Credit Strategies Fund aims to deliver a compelling income stream while managing credit risk for investors seeking enhanced yield in a diversified fixed-income portfolio.
AI Generated. May Contain Errors.
Free ACP Stock Alerts