Similar to other emerging markets in Aberdeen Asset Management's portfolio, Asia-Pacific is an unfamiliar region shrouded in myth. The area holds more than its fair share of potential investment opportunities. It’s only a matter of distinguishing fact from fiction.
The Aberdeen Asia-Pacific Income Fund, Inc. (FAX) seeks to offer investors good yield through corporate and government bonds, backed by solid fundamentals, leverage and sustainable growth.
Breaking down the myths in Asia-Pacific
One common misconception is that China is the only economy that matters in Asia. Not only have we already seen growth in China slow down, but India’s economy is now growing even faster than China. With a population of more than 1.2 billion, India is now on the verge of becoming the world’s third-largest economy by 2030.1 Another overlooked Asia-Pacific region is Indonesia, which is rich in resources and the world’s fourth most populous country. Both of these regions play a significant role in the Aberdeen Asia-Pacific Income Fund, Inc.
High political risk is another myth in the Asia-Pacific region. Countries in the region are at various stages of political and economic development, making high political risk a generalization that simply doesn’t hold true in our view. Singapore, for example, has maintained a sovereign rating of AAA2 for years because its government hasn’t added to its budget deficit since the 1980s. Its currency is also tied closely to the Aberdeen Asia-Pacific Income Fund. In other countries tied to the fund, such as Indonesia, South Korea and the Philippines, sovereign ratings are currently on the rise.
Download the Aberdeen Asia-Pacific Income Fund factsheet to learn more about the fund’s objective, policies, performance and more.