Monthly Dividend Proceeds Amid Fund Merger Uncertainty

Shareholders of the Aberdeen Global Income Fund are receiving their regular monthly distribution of $0.07 per share today. However, this routine payment occurs against a backdrop of significant corporate uncertainty, as the planned merger with the abrdn Asia-Pacific Income Fund faces regulatory delays.

The proposed consolidation with the Asia-Pacific Income Fund (FAX) has been suspended due to the ongoing US government shutdown that began on October 1. This political impasse has effectively frozen the operations of the Securities and Exchange Commission, preventing the regulatory body from reviewing merger documents originally submitted on September 17.

This regulatory paralysis has created a domino effect of delays. The special shareholder meeting scheduled for December 10 to vote on the merger cannot proceed without SEC clearance. Additionally, the fund cannot distribute necessary proxy materials to investors until regulators complete their review. The timeline for resolving these issues remains entirely uncertain, leaving both funds in administrative limbo.

Valuation Concerns Surface

While the merger remains in suspension, attention turns to the fund's current market valuation, which presents several areas of investor concern:

Should investors sell immediately? Or is it worth buying Aberdeen Global Income?

• The fund currently trades at a significant premium to its net asset value
• Distribution payments substantially exceed investment earnings
• This pattern contributes to a steady erosion of NAV over time

Financial reports through April 30, 2025, already indicated the market price was trading well above intrinsic value. This disparity raises critical questions for income-focused investors: Can the fund's attractive dividend yield be maintained over the long term, or is the current distribution policy unsustainable?

Fiscal Year Closes Amid Uncertainty

Today marks both the end of the month and the conclusion of the Aberdeen Global Income Fund's fiscal year. Investors now await the release of annual financial statements and strategic updates in the coming weeks. These documents will provide crucial insight into the fund's direction following today's dividend distribution and amid the merger postponement.

The fundamental question remains unanswered: Will the fund be able to justify its current distribution strategy over the long term, or could investors face disappointing developments ahead?