UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22132
Exact name of registrant as specified in charter:
Aberdeen Funds
Address of principal executive offices:
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Name and address of agent for service:
Ms. Andrea Melia
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Registrant’s telephone number, including area code: 866-667-9231
Date of fiscal year end: October 31
Date of reporting period: April 30, 2016
Item 1. Reports to Shareholders.
Aberdeen Funds
Equity Series
Semi-Annual Report
April 30, 2016
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
Aberdeen Asia-Pacific Smaller Companies Fund
Aberdeen China Opportunities Fund
Aberdeen Emerging Markets Fund
Aberdeen Equity Long-Short Fund
Aberdeen European Equity Fund
Aberdeen Global Equity Fund
Aberdeen Global Natural Resources Fund
Aberdeen International Equity Fund
Aberdeen International Small Cap Fund (formerly, Aberdeen Global Small Cap Fund)
Abderdeen Japanese Equities Fund
Aberdeen Latin American Equity Fund
Aberdeen U.S. Mid Cap Equity Fund
Aberdeen U.S. Multi Cap Equity Fund (formerly, Aberdeen U.S. Equity Fund)
Aberdeen U.S. Small Cap Equity Fund (formerly, Aberdeen Small Cap Fund)
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Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 866-667-9231 to request a prospectus, or download a prospectus at www.aberdeen-asset.us. Please read it carefully before investing any money.
Investing in mutual funds involves risk, including possible loss of principal.
Aberdeen Funds is distributed by Aberdeen Fund Distributors LLC, Member FINRA, 1735 Market Street, 32nd Floor, Philadelphia, PA 19103.
Aberdeen Asset Management Inc. (AAMI) has been registered as an investment adviser under the Investment Advisers Act of 1940 since August 23, 1995.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The complete schedule of portfolio holdings for each fund of Aberdeen Funds (each a “Fund” and collectively, the “Funds”) is included in the Funds’ semi-annual and annual reports to shareholders. Aberdeen Funds also files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q filings are available on the Commission’s website at http://www.sec.gov. The Funds’ Form N-Q filings may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on www.aberdeen-asset.us or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-667-9231. The information is also included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.aberdeen-asset.us and on the Commission’s website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available by August 30 of the relevant year: (i) upon request and without charge by calling 1-866-667-9231; and (ii) on the Commission’s website at www.sec.gov.
The performance of the global financial markets varied during the six-month period ended April 30, 2016. There were disparate returns among some of the various regional market indices – even within asset classes. There were several periods of volatility, attributable partly to investors’ concerns regarding the direction of U.S. Federal Reserve (Fed) monetary policy, economic growth in China and the ongoing slump in global oil and commodity prices. However, global equities rallied towards the end of the reporting period amid an upturn in the oil and commodity markets, more clarity on U.S. monetary policy, as well as the European Central Bank’s (ECB’s) introduction of fresh economic stimulus measures.
The Morgan Stanley Capital International (MSCI) World Index, a global equity market benchmark, returned -0.7% for the reporting period. Large-cap U.S. stocks finished in positive territory and outperformed their developed-market peers in Europe and Asia. The U.S. broader-market S&P 500 Index rose 0.4%, versus the -3.9% and -1.3% returns of the FTSE Europe Index and the MSCI All Country (AC) Asia-Pacific Index, respectively, for the period. Emerging markets stocks, as represented by the MSCI Emerging Markets Index, posted a virtually flat return for the period. The strong rebound in commodity prices propelled the S&P Global Natural Resources Index to a gain of 11.3%, with particular strength in the previously beaten-down metals and mining sector.
The U.S. equity market provided mixed performance over the reporting period, with shares of mid- and large-cap companies finishing modestly higher. Small-cap stocks produced negative returns, as their strong performance in March and April 2016 could not offset steep losses earlier in the reporting period. U.S. employment and personal income data were generally upbeat during the period; however, there was a notable slowdown in economic growth despite an increase in consumer spending. On the corporate earnings front, we believe that the persistently low interest rate environment and revised market expectations that the Fed may proceed more cautiously with future rate increases may lead banks to moderate their expectations for earnings later in 2016. In contrast, energy and industrial companies reported first-quarter 2016 results that may signal that their businesses are stabilizing – perhaps even improving in some cases.
Shares of European companies were the weakest global equity performers over the reporting period. In addition to investors’ concerns about global growth and declining oil prices, these stocks were exposed to several negative catalysts unique to the market – most notably the UK’s referendum on European Union (EU) membership and lingering geopolitical worries resulting from the terror attacks in Paris and Brussels. However, equity prices gained ground late in the period, as the ECB’s aggressive monetary easing, including a reduction in its deposit rate to -0.4%, buoyed investor sentiment. The uncertainty surrounding the EU membership referendum and relatively sluggish economic data hindered the performance of UK stocks, which ended the reporting period with a virtually flat return, as measured by the FTSE All Share Index.
Similar to many of their global market peers, Asian equities partially counterbalanced losses earlier in the reporting period with a turnaround in March and April 2016 on investors’ optimism regarding rising oil and commodity prices and global central bank monetary policy. The Bank of Japan’s surprise move to impose negative interest rates also had a positive impact. Market sentiment in India initially waned after the government failed to implement two key reforms – one on land acquisition and the other, a nationwide goods-and-services tax. However, losses subsequently were trimmed after the release of the latest budget, as the government appeared to stay on course with fiscal consolidation and increased its efforts to boost the rural economy. The upturn in commodity prices in the second half of the reporting period also improved the outlook for oil-exporting nations such as Malaysia and helped their market benchmark indices to stage a recovery. The Singapore stock market’s rebound was attributable in part to better-than-expected operating results in the banking sector. Although domestic lenders reported higher loan loss provisions, they made significant efforts to disclose details of their exposure to both China and the commodities market.
Although the MSCI Emerging Markets Index was basically unchanged during the reporting period, this was not indicative of the substantial dichotomy in performance among individual emerging market countries. Weakness in China and India offset notable strength in Brazil and Turkey. A sharp sell-off in Chinese stocks in response to slowing growth and the government’s devaluation of the yuan against the U.S. dollar, along with the continued decline in oil prices, initially triggered bouts of investor risk aversion. However, markets reversed direction and moved higher in the latter half of the reporting period. People’s Bank of China Governor Zhou Xiaochuan subsequently downplayed the continued depreciation of the yuan and refuted speculation of tighter capital controls. Other contributors to the rally included a rebound in commodity prices, as well as the Brazilian Senate’s much-anticipated vote to impeach troubled President Dilma Rousseff amid accusations of fiscal mismanagement and her alleged ties to the ongoing scandal at state-owned oil company Petrobras.
Global fixed-income securities significantly outperformed their equity counterparts in an environment of generally low investor risk appetite over the reporting period. Investment-grade bonds, as measured by the Barclays Global Aggregate Bond Index, gained 6.1%. Although investors questioned the effectiveness of negative interest rates imposed by the central banks in Europe and Japan, they appeared to be encouraged that monetary policy generally remained loose, as Asian central banks continued to reduce interest rates and the Fed adopted a more dovish monetary policy stance. The performance of global high-yield securities lagged that of investment-grade credits over the period, as the asset class has greater exposure to the volatility of commodity prices. The Bank of America Merrill Lynch Global High Yield Constrained Index returned 2.9%, led by emerging markets debt.
Outlook
During the six-month reporting period, we saw significant volatility and strong rallies in certain regions and sectors which do not necessarily reflect a corresponding positive change in fundamentals.
2016 Semi-Annual Report
1
Market Review (concluded)
We remain mindful of slowing global growth and uncertainty over monetary policymakers’ next steps, particularly in the U.S., where dollar strength weighs on corporate profitability. The risk of acceleration in China’s slowdown, or of a poor policy response to prevent it, also seems critical, in our view. In such an unstable environment, we advocate caution in setting expectations for corporate earnings, but we believe that we are also poised to take advantage of opportunities that market uncertainty creates.
We anticipate that global equities may remain volatile in the near term. Specifically, we believe that investors may return to a more cautious mood, given the highly anticipated Fed meeting in June, followed by the referendum on EU membership in the UK. Many unknowns remain, in our view: investors are wary of the effectiveness of central bank action; governments need to implement more proactive reforms; and there does not appear to be a sustained demand for commodities. We believe that all of these factors raise the specter of a protracted slump in the global financial markets. Notwithstanding the unpredictable climate, we maintain confidence in our equity investment process of bottom-up, fundamental research, choosing stocks of companies that we believe are well-managed market-leaders with efficient operations.
Hugh Young
Managing Director
Aberdeen Asset Management
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Semi-Annual Report 2016
2
Aberdeen Asia-Pacific (ex-Japan) Equity Fund (Unaudited)
The Aberdeen Asia-Pacific (ex-Japan) Equity Fund (Institutional Class shares net of fees) returned -2.07% for the six-month period ended April 30, 2016, versus the -0.34% return of its benchmark, the MSCI All Country (AC) Asia Pacific ex Japan Index, during the same period. For broader comparison, the average return of the Fund’s category of Pacific ex-Japan Funds (comprising 49 funds), as measured by Lipper, Inc., was -0.55% for the period.
Asian equities declined modestly in U.S. dollar terms over the six-month period ended April 30, 2016, with headlines centered on China, commodity prices and the U.S. Federal Reserve’s (Fed’s) monetary policy. China was among the key market laggards, as stock prices moved lower following the liquidity-fueled rally in early 2015. Confidence also waned on a stuttering economy. Regulations, such as the short-lived index circuit-breakers, were implemented in a bid to stem capital outflows, while the central bank devalued the yuan in an effort to help exports. Such actions, however, had the unintended effect of spooking investors, resulting in a bottoming of markets in mid-February 2016. Investor sentiment subsequently improved due to a stabilizing yuan and mainland economy, as well as further monetary policy easing.
The Fed raised its benchmark interest rate in December 2015 – the first increase in nearly a decade. However, other developed economies continued to loosen monetary policy, with the European Central Bank extending stimulus and Japan wading into negative interest-rate territory. Towards the end of the period, the Fed appeared to turn more dovish, triggering U.S. dollar weakness and consequent strength in Southeast Asian currencies. Monetary policymakers across Asia maintained their focus on supporting economic growth. China and India were the most aggressive, while Southeast Asian countries also announced various stimulus packages. Consequently, Southeast Asian markets were among the strongest performers for the reporting period.
The Fund underperformed the benchmark MSCI AC Asia Pacific ex Japan Index over the reporting period. The Fund’s overall positioning in Australia and Hong Kong detracted from performance, while positions in China and Taiwan were the primary contributors. At the stock level, Aitken Spence was the most notable detractor from Fund performance for the period. Shares of the Sri Lankan conglomerate, along with those of other local stocks, sold off following a surprise one-off retrospective tax on 2015 earnings as the government looked to reduce the budget deficit. The Fund’s positions in Standard Chartered Bank and HSBC also had a negative impact on performance. The lenders continued to be weighed down by higher loan loss provisions, a slowing Chinese economy and global economic growth concerns. Despite these uncertainties, they have continued to strengthen their capital positions by reducing riskier assets and streamlining their balance sheets, supported by focused, competent and professional management, in our opinion. Shares of Indian mortgage lender Housing Development Finance Corp. (HDFC) fell along with those of other local financial stocks on investors’ concerns over the lending practices at some public-sector banks. The Fund holds only private-sector banks, which we feel are in far better financial shape than their state-owned counterparts.
Conversely, the Fund’s holding in Singapore property developer City Developments enhanced performance for the reporting period. The company benefited from generally positive quarterly results over the period, as sales and net profits were bolstered by rising rental revenues. It has also been proactive in lifting recurring income and diversifying overseas. Moreover, the national budget was perceived as benign for local developers. Although the Singapore government deemed it premature to remove property market cooling measures, it reiterated its intention of balancing sustainable growth and affordability. The Fund’s position in Siam Cement also performed well over the reporting period. The Thai industrial conglomerate reported largely upbeat operating results as healthy margins in its chemicals division helped offset a decline in cement revenue. The Fund’s performance relative to its benchmark also benefited from the lack of a position in mainland financial stocks, including China Life Insurance, Industrial & Commercial Bank of China, and China Construction Bank Corp., given that the sector was among the worst hit in the mainland market sell-off.
Regarding Fund activity, we initiated holdings in four companies over the reporting period. In Korea, we established new positions in AmorePacific Corp. and Naver Corp. AmorePacific is a leading cosmetics maker with a burgeoning Chinese business and diversified brand portfolio. We purchased the preferred shares, as we believed that they were trading at an attractive discount relative to the ordinary shares. Naver is an Internet company with a dominant market share in the domestic search portal business, while its mobile messaging subsidiary, LINE, is a major regional player in its core markets of Japan, Thailand, Taiwan and Indonesia. Naver maintains a net cash balance sheet and generates good free cash flow, in our view, which enables the company to continue its efforts to enhance its other related businesses. We also initiated positions in Hong Kong Exchanges and Clearing (HKEx), as well as Bank Central Asia (BCA), one of Indonesia’s largest private banks, on valuation grounds. In our view, HKEx has sound growth prospects, and BCA has an impressive track record, conservative management and a well-capitalized balance sheet.
We also subscribed to the Standard Chartered rights issue, given the attractive discount to the then-current share price. We believe that management is taking the right steps to address the bank’s problems and this rights issue may bolster the bank’s capital position, a step that we have been encouraging the bank to undertake.
We exited the Fund’s position in retailer Woolworths, as we believed it had reached its full valuation and faced rising uncertainty in an increasingly tough operating environment. We also took profits from Samsung Electronics by trimming the position after its stock price surged from August lows following news of its multi-billion-dollar share buyback and cancellation plan. While we believe there are potential benefits from capital restructuring, we reduced the Fund’s position in fast-food restaurant operator Yum! Brands in view of the continued uncertainty over the recovery of its China business.
Market momentum in the Asia-Pacific region has waned, mainly because the recent rally was not attributable to any fundamental improvements in the global economy. Much of China’s first-quarter
2016 Semi-Annual Report
3
Aberdeen Asia-Pacific (ex-Japan) Equity Fund (Unaudited) (concluded)
2016 gross domestic product (GDP) growth – while hitting the official 6.5-7% target – resulted largely from government stimulus that was accompanied by credit expansion and a pickup in investment activity. Fresh investor concerns over the sustainability of the debt-fueled expansion are resurfacing. Across the region, export volumes – particularly for trade-dependent economies such as Korea, Taiwan and Singapore – remain soft. For example, Thailand has downgraded this year’s GDP forecast in response to lackluster exports. We think that its prospects are further clouded by the divergence in monetary policy. While the Fed looks to tighten policy at a cautious pace, Europe and Japan are generally expected to keep interest rates low or negative for some time, even as the jury is still out on the efficacy of such unconventional policies, in our view. We think that further volatility seems inevitable in the absence of solid fundamental catalysts.
Portfolio Management:
Aberdeen Asia-Pacific Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Concentrating investments in the Asia-Pacific region subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Parts of the Asia-Pacific region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
4
Aberdeen Asia-Pacific (ex-Japan) Equity Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | Inception1 | ||||||||||||||
Class A2 | w/o SC | (2.01% | ) | (17.40% | ) | (1.47% | ) | 2.67% | ||||||||||
w/SC3 | (7.62% | ) | (22.16% | ) | (2.62% | ) | 1.73% | |||||||||||
Class C2 | w/o SC | (2.47% | ) | (18.05% | ) | (2.05% | ) | 2.20% | ||||||||||
w/SC4 | (3.42% | ) | (18.83% | ) | (2.05% | ) | 2.20% | |||||||||||
Class R2,5 | w/o SC | (2.15% | ) | (17.64% | ) | (1.69% | ) | 3.25% | ||||||||||
Institutional Service Class5 | w/o SC | (1.97% | ) | (17.24% | ) | (1.32% | ) | 2.79% | ||||||||||
Institutional Class5 | w/o SC | (2.07% | ) | (17.36% | ) | (1.30% | ) | 2.81% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on November 16, 2009. |
2 | Returns before the first offering of Class A, Class C and Class R (February 28, 2012) are based on the previous performance of the Institutional Class. This performance is substantially similar to what Class A, Class C and Class R would have produced because all classes invest in the same portfolio of securities. Returns for Class A, Class C and Class R shares would only differ to the extent of the differences in expenses of the classes. |
3 | A 5.75% front-end sales charge was deducted. |
4 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
5 | Not subject to any sales charges. |
2016 Semi-Annual Report
5
Aberdeen Asia-Pacific (ex-Japan) Equity Fund (Unaudited)
Performance of a $1,000,000 Investment* (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Asia-Pacific (ex-Japan) Equity Fund, the Morgan Stanley Capital International All Country (MSCI AC) Asia Pacific ex-Japan Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI AC Asia Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed Markets countries (excluding Japan) and 8 Emerging Markets countries in the Asia Pacific region. With 702 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Developed Markets countries in the index include: Australia, Hong Kong, New Zealand and Singapore. Emerging Markets countries include: China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 98.9% | |||
Preferred Stocks | 6.0% | |||
Repurchase Agreement | 2.7% | |||
Liabilities in excess of other assets | (7.6%) | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 46.7% | |||
Information Technology | 12.0% | |||
Materials | 11.3% | |||
Industrials | 9.6% | |||
Telecommunication Services | 9.2% | |||
Consumer Staples | 6.5% | |||
Consumer Discretionary | 4.9% | |||
Health Care | 2.5% | |||
Energy | 2.2% | |||
Other | (4.9%) | |||
100.0% |
Top Holdings* | ||||
Samsung Electronics Co. Ltd., Preferred Shares | 5.4% | |||
Jardine Strategic Holdings Ltd. | 4.8% | |||
Oversea-Chinese Banking Corp. Ltd. | 4.3% | |||
AIA Group Ltd. | 3.9% | |||
Housing Development Finance Corp. Ltd. | 3.8% | |||
Singapore Telecommunications Ltd. | 3.7% | |||
HSBC Holdings PLC | 3.5% | |||
China Mobile Ltd. | 3.4% | |||
City Developments Ltd. | 3.4% | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.4% | |||
Other | 60.4% | |||
100.0% |
Top Countries | ||||
Hong Kong | 21.0% | |||
Singapore | 20.2% | |||
India | 13.5% | |||
Australia | 11.4% | |||
Republic of South Korea | 8.2% | |||
China | 7.2% | |||
Taiwan | 5.5% | |||
Indonesia | 4.8% | |||
Philippines | 4.3% | |||
Malaysia | 3.5% | |||
Other | 0.4% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Semi-Annual Report 2016
6
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (98.9%) | ||||||||
AUSTRALIA (11.4%) | ||||||||
Financials (3.3%) | ||||||||
QBE Insurance Group Ltd. (a) | 68,012 | $ | 572,432 | |||||
Health Care (2.5%) | ||||||||
CSL Ltd. (a) | 5,392 | 429,679 | ||||||
Materials (5.6%) | ||||||||
BHP Billiton PLC — London Listing (a) | 28,434 | 388,536 | ||||||
Rio Tinto PLC — London Listing (a) | 17,301 | 580,385 | ||||||
968,921 | ||||||||
1,971,032 | ||||||||
CHINA (7.2%) | ||||||||
Consumer Discretionary (1.0%) | ||||||||
Yum! Brands, Inc. | 2,229 | 177,339 | ||||||
Energy (2.2%) | ||||||||
PetroChina Co. Ltd., H Shares (a) | 522,000 | 381,911 | ||||||
Materials (0.6%) | ||||||||
Anhui Conch Cement Co. Ltd., H Shares (a) | 34,500 | 90,910 | ||||||
Telecommunication Services (3.4%) | ||||||||
China Mobile Ltd. (a) | 51,500 | 591,259 | ||||||
1,241,419 | ||||||||
HONG KONG (21.0%) | ||||||||
Financials (15.4%) | ||||||||
AIA Group Ltd. (a) | 114,000 | 680,783 | ||||||
Hang Lung Group Ltd. (a) | 137,000 | 421,096 | ||||||
Hong Kong Exchanges and Clearing Ltd. (a) | 7,800 | 196,717 | ||||||
HSBC Holdings PLC (a) | 89,866 | 598,196 | ||||||
Swire Pacific Ltd., Class B (a) | 292,500 | 569,544 | ||||||
Swire Properties Ltd. (a) | 76,900 | 200,169 | ||||||
2,666,505 | ||||||||
Industrials (5.6%) | ||||||||
Jardine Strategic Holdings Ltd. (a) | 28,700 | 829,573 | ||||||
MTR Corp. Ltd. (a) | 29,319 | 145,140 | ||||||
974,713 | ||||||||
3,641,218 | ||||||||
INDIA (13.5%) | ||||||||
Consumer Discretionary (1.4%) | ||||||||
Hero MotoCorp Ltd. (a) | 5,680 | 247,958 | ||||||
Consumer Staples (2.0%) | ||||||||
ITC Ltd. (a) | 71,000 | 348,289 | ||||||
Financials (5.1%) | ||||||||
Housing Development Finance Corp. Ltd. (a) | 40,199 | 659,687 | ||||||
ICICI Bank Ltd. (a) | 64,500 | 228,677 | ||||||
888,364 | ||||||||
Information Technology (2.7%) | ||||||||
Infosys Ltd. (a) | 10,504 | 190,786 | ||||||
Tata Consultancy Services Ltd. (a) | 6,983 | 267,118 | ||||||
457,904 | ||||||||
Materials (2.3%) | ||||||||
Grasim Industries Ltd. (a) | 6,377 | 392,321 | ||||||
2,334,836 | ||||||||
INDONESIA (4.8%) | ||||||||
Consumer Discretionary (2.5%) | ||||||||
Astra International Tbk PT (a) | 876,900 | 444,987 | ||||||
Consumer Staples (1.1%) | ||||||||
Unilever Indonesia Tbk PT (a) | 58,200 | 187,449 | ||||||
Financials (1.2%) | ||||||||
Bank Central Asia Tbk PT (a) | 206,900 | 204,189 | ||||||
836,625 | ||||||||
MALAYSIA (3.5%) | ||||||||
Consumer Staples (1.1%) | ||||||||
British American Tobacco Bhd | 16,400 | 192,610 | ||||||
Financials (2.4%) | ||||||||
CIMB Group Holdings Bhd (a) | 163,592 | 195,208 | ||||||
Public Bank Bhd (a) | 44,500 | 212,863 | ||||||
408,071 | ||||||||
600,681 | ||||||||
PHILIPPINES (4.3%) | ||||||||
Financials (4.3%) | ||||||||
Ayala Corp. (a) | 26,760 | 439,501 | ||||||
Bank of the Philippine Islands (a) | 158,915 | 306,587 | ||||||
746,088 | ||||||||
REPUBLIC OF SOUTH KOREA (2.2%) | ||||||||
Consumer Staples (1.7%) | ||||||||
E-Mart Inc. (a) | 1,883 | 302,453 | ||||||
Information Technology (0.5%) | ||||||||
NAVER Corp. (a) | 150 | 88,897 | ||||||
391,350 | ||||||||
SINGAPORE (20.2%) | ||||||||
Financials (12.5%) | ||||||||
City Developments Ltd. (a) | 95,200 | 588,847 | ||||||
DBS Group Holdings Ltd. (a) | 41,575 | 470,258 | ||||||
Oversea-Chinese Banking Corp. Ltd. (a) | 114,062 | 740,957 | ||||||
United Overseas Bank Ltd. (a) | 26,435 | 364,291 | ||||||
2,164,353 | ||||||||
Industrials (4.0%) | ||||||||
Keppel Corp. Ltd., REIT (a) | 77,600 | 310,107 | ||||||
Singapore Technologies Engineering Ltd. (a) | 157,100 | 374,999 | ||||||
685,106 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
7
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
Shares or Principal Amount | Value | |||||||
Telecommunication Services (3.7%) | ||||||||
Singapore Telecommunications Ltd. (a) | 225,700 | $ | 645,590 | |||||
3,495,049 | ||||||||
TAIWAN (5.5%) | ||||||||
Information Technology (3.4%) | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 127,000 | 583,485 | ||||||
Telecommunication Services (2.1%) | ||||||||
Taiwan Mobile Co. Ltd. (a) | 110,100 | 362,928 | ||||||
946,413 | ||||||||
THAILAND (2.8%) | ||||||||
Materials (2.8%) | ||||||||
Siam Cement PCL, Foreign Shares (a) | 35,300 | 494,463 | ||||||
UNITED KINGDOM (2.5%) | ||||||||
Financials (2.5%) | ||||||||
Standard Chartered PLC (a) | 52,786 | 426,649 | ||||||
Total Common Stocks | 17,125,823 | |||||||
PREFERRED STOCKS (6.0%) | ||||||||
REPUBLIC OF SOUTH KOREA (6.0%) | ||||||||
Consumer Staples (0.6%) | ||||||||
Amorepacific Corp., Preferred Shares (a) | 490 | 97,396 | ||||||
Information Technology (5.4%) | ||||||||
Samsung Electronics Co. Ltd., Preferred Shares (a) | 1,034 | 944,341 | ||||||
1,041,737 | ||||||||
Total Preferred Stocks | 1,041,737 | |||||||
REPURCHASE AGREEMENT (2.7%) | ||||||||
UNITED STATES (2.7%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $467,001 collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $480,575 | $ | 467,000 | 467,000 | |||||
Total Repurchase Agreement | 467,000 | |||||||
Total Investments | 18,634,560 | |||||||
Liabilities in excess of other assets—(7.6)% | (1,309,894 | ) | ||||||
Net Assets—100.0% | $ | 17,324,666 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
8
Aberdeen Asia-Pacific Smaller Companies Fund (Unaudited)
The Aberdeen Asia-Pacific Smaller Companies Fund (Institutional Class shares net of fees) returned 0.74% for the six-month period ended April 30, 2016, versus the 0.88% return of its benchmark, the MSCI All Country (AC) Asia Pacific ex Japan Small Cap Index, during the same period. For broader comparison, the average return of the Fund’s peer category of Pacific Region Funds (comprising 27 funds), as measured by Lipper, Inc., was -0.56% for the period.
Asian small-cap equities experienced periods of volatility over the six-month period ended April 30, 2016, with headlines centered on China, commodity prices and the U.S. Federal Reserve’s (Fed’s) monetary policy. China was among the key market laggards, as stock prices moved lower following the liquidity-fueled rally in early 2015. Confidence also waned on a stuttering economy. Regulations, such as the short-lived index circuit-breakers, were implemented in a bid to stem capital outflows, while the central bank devalued the yuan in an effort to help exports. Such actions, however, had the unintended effect of spooking investors, resulting in a bottoming of markets in mid-February 2016. Investor sentiment subsequently improved due to a stabilizing yuan and mainland economy, as well as further monetary policy easing.
Slowing economic growth in China also hurt what had previously seemed an insatiable global appetite for natural resources. Oil prices fell steeply to below US$30 a barrel in early February 2016, while oil supply continued to grow. Commodity price weakness, along with global growth worries, resulted in a volatile start to 2016 for the Asian equity markets, but they subsequently recovered following signs of stability across emerging economies. Malaysia, which was one of the worst-performing markets in the 2015 calendar year, saw a significant rebound, as the country is a net exporter of resources.
The Fed raised its benchmark interest rate in December 2015 – the first increase in nearly a decade. However, other developed economies continued to loosen monetary policy, with the European Central Bank extending stimulus and the Bank of Japan wading into negative interest-rate territory. Towards the end of the period, the Fed appeared to turn more dovish, triggering U.S. dollar weakness and consequent strength in Southeast Asian currencies. Monetary policymakers across Asia maintained their focus on supporting economic growth. China and India were the most aggressive, while Association of Southeast Asian Nations (ASEAN) policymakers also announced various stimulus packages. Consequently, ASEAN markets were among the strongest performers for the reporting period.
The Fund’s position in Multi Bintang Indonesia contributed significantly to performance over the reporting period, as its share price rose in reaction to management’s efforts to expand the beverage business and add new products to its portfolio. The company’s most recent operating results indicated improved profitability, while cash-generation further strengthened its balance sheet. Fund performance also benefited from the holding in Hong Kong-based Dah Sing Financial, which again was the focus of merger-and-acquisition speculation relating to its life insurance business. Another solid performer among Fund holdings was Thailand’s Tisco Financial Group, which reported steady quarterly results over the period attributable to healthy net interest margins and fee income, along with improvements in asset quality.
Conversely, Korea’s BNK Financial Group was the biggest detractor from Fund performance for the reporting period, as the company posted generally lower-than-expected earnings due to higher loan loss provisions and lower non-interest income, with its full-year 2015 results missing our forecasts. Furthermore, BNK Financial had undertaken a discounted rights issue in an effort to improve its capital base. The position in Pacific Basin Shipping, a dry-bulk carrier company, also weighed on Fund performance. The company reported relatively weak operating results over the reporting period amid a challenging environment with lower-than-expected freight rates and an oversupplied market. However, it has experience in managing business cycles and has been strengthening its balance sheet with non-core asset disposals. Finally, the holding in Bank Permata detracted from Fund performance as the Indonesian mid-sized lender was hampered by rising asset impairments. The bank’s share price came under further pressure after it announced a rights issue in a bid to bolster capital. However, this was mitigated by a rise in the share price following takeover rumors towards the end of the reporting period.
During the reporting period, we initiated a position in Tong Ren Tang Technologies, which produces traditional Chinese medicine for the Tong Ren Tang Group. We believe that the company has a strong and growing portfolio, and we have confidence in management’s ability to diversify the revenue mix. Conversely, we exited the position in postal and logistics services provider Singapore Post on corporate governance grounds, but we will revisit the stock once there is more clarity on its board changes. We exited several other positions as we believed that these companies had either expensive valuations or deteriorating business prospects, including Hong Kong exchange-listed Green Dragon Gas; Greka Engineering & Technology; Hong Kong Aircraft Engineering; Singapore-based Hong Leong Finance; postal and logistics services provider Pos Malaysia; and Indian IT services provider Tata Consultancy Services.
Looking ahead, market momentum in the Asia-Pacific region has waned, mainly because the recent rally was not attributable to any fundamental improvements in the global economy. Much of China’s first-quarter 2016 gross domestic product (GDP) growth – while hitting the official 6.5-7% target – resulted largely from government stimulus that was accompanied by credit expansion and a pickup in investment activity. Fresh investor concerns over the sustainability of the debt-fueled expansion are resurfacing. Across the region, export volumes – particularly for trade-dependent economies such as Korea, Taiwan and Singapore – remain soft. For example, Thailand has downgraded this year’s GDP forecast in response to lackluster exports. Prospects are further clouded by the divergence in monetary policy. While the Fed looks to tighten policy at a cautious pace, Europe and Japan are generally expected to keep interest rates low or negative for some time, even as the jury is still out on the efficacy of such unconventional policies, in our view. We think that further volatility seems inevitable in the absence of solid fundamental catalysts.
2016 Semi-Annual Report
9
Aberdeen Asia-Pacific Smaller Companies Fund (Unaudited) (concluded)
Portfolio Management:
Aberdeen Asia-Pacific Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Concentrating investments in the Asia-Pacific region subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Parts of the Asia-Pacific region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
10
Aberdeen Asia-Pacific Smaller Companies Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | Inception1 | |||||||||
Class A | w/o SC | 0.49% | (13.20% | ) | 0.96% | |||||||
w/SC2 | (5.26%) | (18.21% | ) | (0.27% | ) | |||||||
Class C | w/o SC | 0.17% | (13.75% | ) | 0.26% | |||||||
w/SC3 | (0.82%) | (14.59% | ) | 0.26% | ||||||||
Class R4 | w/o SC | 0.47% | (13.19% | ) | 0.66% | |||||||
Institutional Service Class4 | w/o SC | 0.73% | (12.91% | ) | 1.49% | |||||||
Institutional Class4 | w/o SC | 0.74% | (12.77% | ) | 1.29% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on June 28, 2011. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2016 Semi-Annual Report
11
Aberdeen Asia-Pacific Smaller Companies Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Asia-Pacific Smaller Companies Fund, Morgan Stanley Capital International All Country (MSCI AC) Asia Pacific ex-Japan Small Cap Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI AC Asia Pacific ex Japan Small Cap Index captures small cap representation across 4 of 5 Developed Markets countries (excluding Japan) and 8 Emerging Markets countries in the Asia Pacific region. With 1,897 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. Developed Markets countries in the index include: Australia, Hong Kong, New Zealand and Singapore. Emerging Markets countries include: China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 96.3% | |||
Warrants | —% | |||
Other assets in excess of liabilities | 3.7% | |||
100.0% |
Amounts listed as “—” are 0% or round to 0%
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 27.7% | |||
Consumer Discretionary | 21.2% | |||
Industrials | 13.0% | |||
Consumer Staples | 9.8% | |||
Materials | 9.6% | |||
Health Care | 6.5% | |||
Information Technology | 4.9% | |||
Utilities | 2.3% | |||
Telecommunication Services | 1.3% | |||
Other | 3.7% | |||
100.0% | ||||
Top Holdings | ||||
Millennium & Copthorne Hotels PLC | 3.3% | |||
Dah Sing Financial Holdings Ltd. | 3.2% | |||
Oriental Holdings Bhd | 2.7% | |||
Bukit Sembawang Estates Ltd. | 2.7% | |||
Aeon Co. (M) Bhd | 2.7% | |||
Multi Bintang Indonesia Tbk PT | 2.3% | |||
United Plantations Bhd | 2.2% | |||
Siam City Cement PCL, Foreign Shares | 2.1% | |||
Kerry Logistics Network Ltd. | 2.0% | |||
Wheelock Properties (Singapore) Ltd. | 2.0% | |||
Other | 74.8% | |||
100.0% |
Top Countries | ||||
Malaysia | 15.2% | |||
Indonesia | 14.5% | |||
Singapore | 13.8% | |||
Hong Kong | 12.0% | |||
India | 9.2% | |||
Thailand | 8.8% | |||
Republic of South Korea | 5.6% | |||
Philippines | 4.2% | |||
China | 4.1% | |||
United Kingdom | 3.3% | |||
Other | 9.3% | |||
100.0% |
Semi-Annual Report 2016
12
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Asia-Pacific Smaller Companies Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (96.3%) | ||||||||
AUSTRALIA (2.2%) | ||||||||
Consumer Discretionary (0.5%) | ||||||||
ARB Corp. Ltd. (a) | 1,111 | $ | 13,558 | |||||
Financials (0.6%) | ||||||||
Shopping Centres Australasia Property Group, REIT (a) | 10,750 | 19,054 | ||||||
Industrials (1.1%) | ||||||||
Cabcharge Australia Ltd. (a) | 14,316 | 34,865 | ||||||
67,477 | ||||||||
CHINA (4.1%) | ||||||||
Financials (1.7%) | ||||||||
Yanlord Land Group Ltd. (a) | 60,000 | 53,913 | ||||||
Health Care (0.9%) | ||||||||
Tong Ren Tang Technologies Co. Ltd., H Shares (a) | 19,000 | 29,814 | ||||||
Materials (0.8%) | ||||||||
Yingde Gases Group Co. Ltd. (a) | 63,500 | 23,721 | ||||||
Utilities (0.7%) | ||||||||
Towngas China Co. Ltd. (a)(b) | 40,000 | 20,696 | ||||||
128,144 | ||||||||
HONG KONG (12.0%) | ||||||||
Consumer Discretionary (3.3%) | ||||||||
Giordano International Ltd. (a) | 116,000 | 52,405 | ||||||
Hongkong & Shanghai Hotels Ltd. (The) (a) | 26,140 | 31,151 | ||||||
Texwinca Holdings Ltd. (a) | 18,000 | 17,504 | ||||||
101,060 | ||||||||
Consumer Staples (1.2%) | ||||||||
Convenience Retail Asia Ltd. (a) | 84,000 | 36,878 | ||||||
Financials (4.6%) | ||||||||
Aeon Credit Service (Asia) Co. Ltd. (a) | 24,000 | 16,081 | ||||||
Dah Sing Financial Holdings Ltd. (a) | 14,538 | 99,349 | ||||||
Public Financial Holdings Ltd. (a) | 56,000 | 25,597 | ||||||
141,027 | ||||||||
Industrials (2.5%) | ||||||||
Kerry Logistics Network Ltd. (a) | 44,500 | 62,760 | ||||||
Pacific Basin Shipping Ltd. (a)(b) | 92,000 | 15,502 | ||||||
78,262 | ||||||||
Telecommunication Services (0.4%) | ||||||||
Asia Satellite Telecommunications Holdings Ltd. | 10,000 | 14,129 | ||||||
371,356 | ||||||||
INDIA (9.2%) | ||||||||
Health Care (2.8%) | ||||||||
Piramal Enterprises Ltd. | 2,105 | 38,241 | ||||||
Sanofi India Ltd. | 723 | 48,085 | ||||||
86,326 | ||||||||
Industrials (1.9%) | ||||||||
Container Corp. of India (a) | 2,850 | 58,077 | ||||||
Information Technology (0.9%) | ||||||||
MphasiS Ltd. (a) | 3,761 | 27,429 | ||||||
Materials (3.0%) | ||||||||
Castrol (India) Ltd. (a) | 5,085 | 30,248 | ||||||
Kansai Nerolac Paints Ltd. (a) | 5,641 | 24,286 | ||||||
Ramco Cements Ltd. (The) (a) | 5,831 | 39,582 | ||||||
94,116 | ||||||||
Utilities (0.6%) | ||||||||
Gujarat Gas Ltd. (a) | 2,520 | 20,235 | ||||||
286,183 | ||||||||
INDONESIA (14.5%) | ||||||||
Consumer Discretionary (2.8%) | ||||||||
Ace Hardware Indonesia Tbk PT (a) | 571,400 | 39,980 | ||||||
Astra Otoparts Tbk PT (a) | 305,100 | 45,912 | ||||||
85,892 | ||||||||
Consumer Staples (5.8%) | ||||||||
Delfi Ltd. | 31,000 | 57,051 | ||||||
M.P. Evans Group PLC | 8,090 | 51,538 | ||||||
Multi Bintang Indonesia Tbk PT (a) | 89,000 | 72,450 | ||||||
181,039 | ||||||||
Financials (2.3%) | ||||||||
Bank OCBC NISP Tbk PT (b) | 367,895 | 36,265 | ||||||
Bank Permata Tbk PT (a) | 499,061 | 34,006 | ||||||
70,271 | ||||||||
Industrials (1.7%) | ||||||||
AKR Corporindo Tbk PT (a) | 109,200 | 53,642 | ||||||
Materials (1.0%) | ||||||||
Holcim Indonesia Tbk PT (a) | 382,700 | 29,979 | ||||||
Telecommunication Services (0.9%) | ||||||||
XL Axiata Tbk PT (a)(b) | 102,000 | 27,181 | ||||||
448,004 | ||||||||
MALAYSIA (15.2%) | ||||||||
Consumer Discretionary (7.0%) | ||||||||
Aeon Co. (M) Bhd (a) | 114,500 | 82,583 | ||||||
Oriental Holdings Bhd | 47,500 | 84,506 | ||||||
Panasonic Manufacturing Malaysia Bhd (a) | 3,900 | 28,534 | ||||||
Shangri-La Hotels Malaysia Bhd | 15,400 | 22,431 | ||||||
218,054 | ||||||||
Consumer Staples (2.8%) | ||||||||
United Malacca Bhd | 12,000 | 18,308 | ||||||
United Plantations Bhd | 9,900 | 67,918 | ||||||
86,226 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
13
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Asia-Pacific Smaller Companies Fund
Shares or Principal Amount | Value | |||||||
Financials (3.1%) | ||||||||
Alliance Financial Group Bhd (a) | 45,400 | $ | 46,485 | |||||
SP Setia Bhd | 43,234 | 35,636 | ||||||
YNH Property Bhd (a)(b) | 26,947 | 13,573 | ||||||
95,694 | ||||||||
Materials (2.3%) | ||||||||
Batu Kawan Bhd (a) | 4,300 | 19,798 | ||||||
Tasek Corp. Bhd (a) | 12,900 | 51,496 | ||||||
71,294 | ||||||||
471,268 | ||||||||
NETHERLANDS (1.0%) | ||||||||
Information Technology (1.0%) | ||||||||
ASM International NV (a) | 720 | 29,410 | ||||||
PHILIPPINES (4.2%) | ||||||||
Consumer Discretionary (0.7%) | ||||||||
Jollibee Foods Corp. (a) | 4,820 | 23,579 | ||||||
Financials (1.0%) | ||||||||
Cebu Holdings, Inc. (a) | 290,500 | 31,569 | ||||||
Industrials (1.5%) | ||||||||
Asian Terminals, Inc. | 184,200 | 45,493 | ||||||
Utilities (1.0%) | ||||||||
Manila Water Co., Inc. (a) | 51,400 | 30,457 | ||||||
131,098 | ||||||||
REPUBLIC OF SOUTH KOREA (5.6%) | ||||||||
Consumer Discretionary (1.8%) | ||||||||
Shinsegae Co. Ltd. (a) | 299 | 55,287 | ||||||
Financials (3.8%) | ||||||||
BNK Financial Group, Inc. (a) | 7,039 | 57,249 | ||||||
DGB Financial Group, Inc. (a) | 7,397 | 59,389 | ||||||
116,638 | ||||||||
171,925 | ||||||||
SINGAPORE (13.8%) | ||||||||
Financials (7.6%) | ||||||||
Bukit Sembawang Estates Ltd. (a) | 25,300 | 83,593 | ||||||
CDL Hospitality Trusts, REIT (a) | 26,000 | 26,945 | ||||||
Far East Hospitality Trust, REIT (a) | 65,500 | 32,377 | ||||||
Wheelock Properties (Singapore) Ltd. (a) | 54,300 | 62,668 | ||||||
Yoma Strategic Holdings Ltd. (a)(b) | 71,333 | 28,521 | ||||||
234,104 | ||||||||
Health Care (2.0%) | ||||||||
Raffles Medical Group Ltd. (a) | 17,429 | 60,835 | ||||||
Industrials (2.1%) | ||||||||
ComfortDelGro Corp. Ltd. (a) | 15,600 | 33,435 | ||||||
SATS Ltd. (a) | 10,500 | 31,975 | ||||||
65,410 | ||||||||
Information Technology (1.7%) | ||||||||
Venture Corp. Ltd. (a) | 8,300 | 51,614 | ||||||
Materials (0.4%) | ||||||||
Straits Trading Co. Ltd. | 9,500 | 14,411 | ||||||
426,374 | ||||||||
SRI LANKA (2.4%) | ||||||||
Financials (0.2%) | ||||||||
Commercial Bank of Ceylon PLC (a) | 7,854 | 7,015 | ||||||
Industrials (2.2%) | ||||||||
Aitken Spence & Co. PLC | 22,381 | 12,396 | ||||||
John Keells Holdings PLC | 50,916 | 54,136 | ||||||
66,532 | ||||||||
73,547 | ||||||||
THAILAND (8.8%) | ||||||||
Consumer Discretionary (1.8%) | ||||||||
BEC World PCL, Foreign Shares (a) | 39,400 | 29,274 | ||||||
Minor International PCL, Foreign Shares (a) | 25,200 | 26,280 | ||||||
55,554 | ||||||||
Financials (2.8%) | ||||||||
AEON Thana Sinsap Thailand PCL, NVDR (a) | 16,700 | 45,419 | ||||||
Tisco Financial Group PCL, Foreign Shares (a) | 34,300 | 42,663 | ||||||
88,082 | ||||||||
Health Care (0.8%) | ||||||||
Bumrungrad Hospital PCL, Foreign Shares (a) | 4,100 | 23,793 | ||||||
Information Technology (1.3%) | ||||||||
Hana Microelectronics PCL, Foreign Shares (a) | 43,200 | 41,044 | ||||||
Materials (2.1%) | ||||||||
Siam City Cement PCL, Foreign Shares (a) | 6,900 | 63,931 | ||||||
272,404 | ||||||||
UNITED KINGDOM (3.3%) | ||||||||
Consumer Discretionary (3.3%) | ||||||||
Millennium & Copthorne Hotels PLC | 15,090 | 101,557 | ||||||
Total Common Stocks | 2,978,747 | |||||||
WARRANTS (0.0%) | ||||||||
SRI LANKA (0.0%) | ||||||||
Industrials (0.0%) | ||||||||
John Keells Holdings PLC, expires 11/11/16 (b) | 8,644 | 827 | ||||||
Total Warrants | 827 | |||||||
Total Investments | 2,979,574 | |||||||
Other assets in excess of liabilities—3.7% | 114,542 | |||||||
Net Assets—100.0% | $ | 3,094,116 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
14
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Asia-Pacific Smaller Companies Fund
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
NVDR | Non-Voting Depositary Receipt |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
15
Aberdeen China Opportunities Fund (Unaudited)
The Aberdeen China Opportunities Fund (Institutional Class shares net of fees) returned -3.72% for the six-month period ended April 30, 2016, versus the -7.25% return of its benchmark, the MSCI Zhong Hua Index, during the same period. For broader comparison, the average return of the Fund’s peer category of China Region Funds (comprising 48 funds), as measured by Lipper, Inc., was -7.69% for the period.
China’s A-shares led the market decline in Hong Kong and the mainland over the six-month period ended April 30, 2016. The period started with fresh central bank monetary policies, positive economic growth data and interest-rate cuts amid Beijing’s 13th five-year plan* to rebalance and reinvigorate a decelerating economy. The U.S. Federal Reserve’s (Fed’s) well-telegraphed interest-rate hike in December 2015 also removed some uncertainty from the market. Mainland markets subsequently experienced a rocky start to 2016, attributable to a volatile yuan, weakening gross domestic product (GDP) growth, a slew of monetary policy gaffes and a steep drop in oil prices. This had a spillover impact on Hong Kong’s stocks and currency, while interbank rates spiked. Stock markets bottomed in mid-February 2016, as investors fretted over the impact of negative interest rates on banks. Towards the end of the reporting period, investor sentiment improved on the back of a stabilizing yuan and mainland economy, a cut to lenders’ reserve requirement ratios, as well as a bounce in commodity prices. Investor risk appetite was further whetted by the Fed’s seemingly dovish policy comments, while Premier Li Keqiang struck a confident tone on economic targets at the National People’s Congress. Latest mainland data also indicated that Beijing’s policy stimulus was gaining traction but also causing greater indebtedness, as bank lending and aggregate financing spiked. After a slow start to the year, the economy appeared to stabilize, with first-quarter 2016 GDP growth of 6.7% still within Beijing’s target of 6.5-7%.
The largest contributor to Fund performance at the stock level for the reporting period was China Vanke, as its share price rose sharply on the back of a potential hostile takeover by privately held Baoneng Group. The property developer suspended trading of its shares on the Hong Kong and Shenzhen exchanges on December 18, 2015, because of a material asset restructuring. This was viewed as a defense against Baoneng’s attempt to raise its stake in China Vanke. The company’s Hong Kong exchange-listed shares have resumed trading, while the Shenzhen-listed shares, which the Fund holds, remain suspended. We are monitoring developments, given limited clarity on the restructuring. During the reporting period, China Vanke posted generally positive results, aided by stable profit margins. Separately, the company signed a preliminary deal to acquire Shenzhen Metro Group’s property projects, mostly above metro stations. China Vanke plans to fund these purchases through new share issues.
The Fund’s holding in hospitality management company Shangri-La Asia also contributed significantly to performance, as its stock price moved higher after it had become undervalued. Investor sentiment in the interest rate-sensitive sector was further lifted by Chinese insurers’ growing appetite for alternative assets, primarily in the hotel and property sector, diminishing expectations of U.S. interest-rate hikes and signs of a stabilizing Chinese economy. The position in railway operator MTR Corp. also bolstered Fund performance, as its recurring profits were underpinned by improving transportation revenues and higher rental income from duty-free shops at its stations. The company also received the Hong Kong government’s approval for an additional HK$19.6 billion (approximately US$2.5 billion) to fund an express rail link to Guangzhou, removing significant financing uncertainty and resulting in a special dividend to be paid in two tranches over the next two years.
Conversely, the lack of exposure to China’s Internet sector, including Tencent, weighed on Fund performance for the reporting period. We are uncomfortable with Tencent’s corporate structure. As Chinese law restricts foreign ownership of companies in certain industries, offshore-listed companies, such as Tencent, use variable interest entities (VIEs) to operate and control businesses in these industries. Operating licenses, and in some cases, operating assets, are held by a VIE that is indirectly owned by foreign shareholders. Nonetheless, although the Fund does not hold Tencent, we have followed the group, conducted extensive diligence on its corporate structure, and engaged with management on these issues. While we are uncomfortable with the VIE structure, we understand why it exists, we believe that management has executed well on its strategy, and we are encouraged by management’s track record in fair treatment of minority shareholders. This partially mitigates our concerns around the group and its corporate structure.
Another key detractor from Fund performance for the reporting period was the holding in Global Brands Group, as the apparel and lifestyle products company was hurt by investors’ concerns over the U.S. consumer recovery. Nonetheless, we feel that the company’s exposure to the retail market tends to be more defensive, given its sizeable business in the children’s apparel segment. The Fund’s position in Pacific Basin Shipping, a dry-bulk carrier, also hindered performance for the period, as the company reported relatively weak operating results amid a challenging environment with lower-than-expected freight rates and an oversupplied market. However, the company has experience in managing business cycles and has been strengthening its balance sheet with non-core asset disposals.
During the reporting period, we initiated a position in CSPC Pharmaceutical Group. We like its drug portfolio and robust product pipeline, and we believe that the company is well-positioned to benefit from a diversified revenue base. We also established a new holding in Shanghai International Airport, which provides a broad range of services at the Shanghai Pudong International Airport, the busiest airport in mainland China. We exited the position in China Merchants Bank’s A-shares and bought the lender’s H-shares, as the latter are trading at a significant discount to the A-shares. We also subscribed to Standard Chartered’s rights issue, as we believed that it offered an attractive discount to the then-current share price.
Generally improving data, which had added a veneer of economic stability in the Chinese market, proved short-lived. Since then,
* | The five-year plan is a series of social and economic development initiatives of the government of China. The current plan encompasses the period of 2016 to 2020. |
Semi-Annual Report 2016
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Aberdeen China Opportunities Fund (Unaudited) (concluded)
manufacturing and services activity has weakened. Exports are languishing, with few signs of relief in sight, given the subdued external demand. Imports of commodities and manufactured products are down sharply, underscoring the fragile domestic recovery. The property sector could slow, in our opinion, as recent efforts to reduce systemic risk start to weigh more heavily on investor sentiment and sales. Given this backdrop, we think that growth support will have to emanate from more accommodative monetary policy and further fiscal expansion. The Chinese government has already indicated that it would invest an additional 700 billion yuan (roughly US$107 billion) in transportation infrastructure over three years. However, stimulus efforts can only do so much, in our view. It is difficult for us to discuss a more sustained recovery when the global economy is still struggling to gain traction. More importantly, we think that structural reforms, particularly of inefficient state-owned enterprises, will be the key to advancing the challenging transition to a consumption-driven economy. In our opinion, short-term pains may be a price worth paying, especially if the benefits are stronger companies, healthier stock markets and more sustainable economic growth over the longer term.
Portfolio Management:
Aberdeen Asia-Pacific Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Concentrating investments in China and Hong Kong subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage) and differing legal standards.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
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Aberdeen China Opportunities Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | (3.85% | ) | (19.94% | ) | (3.24% | ) | 5.49% | ||||||||||
w/SC2 | (9.35% | ) | (24.55% | ) | (4.39% | ) | 4.87% | |||||||||||
Class C | w/o SC | (4.17% | ) | (20.57% | ) | (3.96% | ) | 4.72% | ||||||||||
w/SC3 | (5.13% | ) | (21.36% | ) | (3.96% | ) | 4.72% | |||||||||||
Class R4 | w/o SC | (4.07% | ) | (3.62% | ) | (16.84% | ) | 5.15% | ||||||||||
Institutional Service Class4 | w/o SC | (3.72% | ) | (3.00% | ) | (14.15% | ) | 5.76% | ||||||||||
Institutional Class4 | w/o SC | (3.72% | ) | (3.01% | ) | (14.19% | ) | 5.74% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns incorporate the performance of a predecessor fund (the “Predecessor Fund”) from inception to June 23, 2008. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
Semi-Annual Report 2016
18
Aberdeen China Opportunities Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen China Opportunities Fund, Morgan Stanley Capital International (MSCI) Zhong Hua Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI Zhong Hua Index is a composite index that comprises the MSCI China and MSCI Hong Kong Index. The index captures large and mid cap representation across all China securities (B shares, H shares, Red Chips, P Chips and foreign listed shares) as well as Hong Kong securities.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment returns and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 95.1% | |||
Repurchase Agreement | 2.7% | |||
Other assets in excess of liabilities | 2.2% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 33.9% | |||
Industrials | 19.2% | |||
Consumer Discretionary | 16.4% | |||
Energy | 6.1% | |||
Telecommunication Services | 5.2% | |||
Health Care | 3.5% | |||
Consumer Staples | 3.5% | |||
Information Technology | 2.9% | |||
Materials | 2.8% | |||
Utilities | 1.6% | |||
Other | 4.9% | |||
100.0% |
Top Holdings* | ||||
AIA Group Ltd. | 6.2% | |||
Jardine Strategic Holdings Ltd. | 5.3% | |||
MTR Corp. Ltd. | 5.1% | |||
HSBC Holdings PLC | 4.4% | |||
Swire Pacific Ltd., Class B | 4.4% | |||
China Mobile Ltd. | 4.0% | |||
China Vanke Co. Ltd., A Shares | 3.9% | |||
Shangri-La Asia Ltd. | 3.0% | |||
Hang Lung Group Ltd. | 2.8% | |||
Kerry Logistics Network Ltd. | 2.7% | |||
Other | 58.2% | |||
100.0% |
Top Countries | ||||
Hong Kong | 63.2% | |||
China | 31.9% | |||
United States | 2.7% | |||
Other | 2.2% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
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Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen China Opportunities Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (95.1%) | ||||||||
CHINA (31.9%) | ||||||||
Consumer Discretionary (3.5%) | ||||||||
Fuyao Glass Industry Group Co. Ltd., H Shares (a)(b)(c) | 154,800 | $ | 348,920 | |||||
Yum! Brands, Inc. | 2,074 | 165,007 | ||||||
513,927 | ||||||||
Energy (6.1%) | ||||||||
CNOOC Ltd. (b) | 235,000 | 290,300 | ||||||
Green Dragon Gas Ltd. (a) | 53,811 | 208,359 | ||||||
Greka Drilling Ltd. (a) | 225,000 | 15,616 | ||||||
Greka Engineering & Technology Ltd. (a) | 174,000 | 2,288 | ||||||
PetroChina Co. Ltd., H Shares (b) | 536,000 | 392,154 | ||||||
908,717 | ||||||||
Financials (7.4%) | ||||||||
China Merchants Bank Co. Ltd., H Shares (b)(d) | 145,000 | 318,013 | ||||||
China Vanke Co. Ltd., A Shares (d) | 183,000 | 585,307 | ||||||
Yanlord Land Group Ltd. (b) | 220,600 | 198,221 | ||||||
1,101,541 | ||||||||
Health Care (3.5%) | ||||||||
CSPC Pharmaceutical Group Ltd. (b) | 226,000 | 199,991 | ||||||
Tong Ren Tang Technologies Co. Ltd., H Shares (b) | 208,000 | 326,380 | ||||||
526,371 | ||||||||
Industrials (3.7%) | ||||||||
China Conch Venture Holdings Ltd. (b) | 182,000 | 369,183 | ||||||
Shanghai International Airport Co. Ltd., A Shares (b) | 42,000 | 175,876 | ||||||
545,059 | ||||||||
Information Technology (1.8%) | ||||||||
Hangzhou Hikvision Digital Technology Co. Ltd., A Shares (b)(d) | 57,500 | 268,929 | ||||||
Materials (1.9%) | ||||||||
Huaxin Cement Co. Ltd., B Shares (b) | 107,240 | 73,855 | ||||||
Yingde Gases Group Co. Ltd. (b) | 573,000 | 214,053 | ||||||
287,908 | ||||||||
Telecommunication Services (4.0%) | ||||||||
China Mobile Ltd. (b) | 52,000 | 597,000 | ||||||
4,749,452 | ||||||||
HONG KONG (63.2%) | ||||||||
Consumer Discretionary (12.9%) | ||||||||
AEON Stores (Hong Kong) Co. Ltd. (b) | 286,500 | 250,913 | ||||||
Giordano International Ltd. (b) | 672,000 | 303,588 | ||||||
Global Brands Group Holding Ltd. (a)(b) | 1,584,380 | 187,323 | ||||||
Hongkong & Shanghai Hotels Ltd. (The) (b) | 246,624 | 293,895 | ||||||
Samsonite International SA (b) | 86,900 | 278,917 | ||||||
Shangri-La Asia Ltd. (b) | 370,000 | 452,485 | ||||||
Texwinca Holdings Ltd. (b) | 160,000 | 155,594 | ||||||
1,922,715 | ||||||||
Consumer Staples (3.5%) | ||||||||
Convenience Retail Asia Ltd. (b) | 388,000 | 170,339 | ||||||
Dairy Farm International Holdings Ltd. (b) | 49,700 | 342,705 | ||||||
513,044 | ||||||||
Financials (26.5%) | ||||||||
AIA Group Ltd. (b) | 155,800 | 930,404 | ||||||
Dah Sing Banking Group Ltd. (b) | 170,240 | 303,746 | ||||||
Hang Lung Group Ltd. (b) | 135,000 | 414,949 | ||||||
Hang Lung Properties Ltd. (b) | 20,000 | 39,824 | ||||||
Hong Kong Exchanges and Clearing Ltd. (b) | 9,827 | 247,838 | ||||||
HSBC Holdings PLC (b) | 99,719 | 663,782 | ||||||
Standard Chartered PLC (HK Listing) (b) | 39,548 | 322,786 | ||||||
Swire Pacific Ltd., Class A (b) | 2,000 | 21,684 | ||||||
Swire Pacific Ltd., Class B (b) | 335,000 | 652,298 | ||||||
Swire Properties Ltd. (b) | 135,800 | 353,485 | ||||||
3,950,796 | ||||||||
Industrials (15.5%) | ||||||||
Hong Kong Aircraft Engineering Co. Ltd. (b) | 27,200 | 176,903 | ||||||
Jardine Strategic Holdings Ltd. (b) | 27,400 | 791,996 | ||||||
Kerry Logistics Network Ltd. (b) | 283,000 | 399,124 | ||||||
MTR Corp. Ltd. (b) | 151,844 | 751,682 | ||||||
Pacific Basin Shipping Ltd. (a)(b) | 1,086,000 | 182,992 | ||||||
2,302,697 | ||||||||
Information Technology (1.1%) | ||||||||
ASM Pacific Technology Ltd. (b) | 23,600 | 169,609 | ||||||
Materials (0.9%) | ||||||||
Hung Hing Printing Group Ltd. (b) | 1,088,000 | 135,258 | ||||||
Telecommunication Services (1.2%) | ||||||||
Asia Satellite Telecommunications Holdings Ltd. | 127,500 | 180,149 | ||||||
Utilities (1.6%) | ||||||||
Hong Kong & China Gas Co. Ltd. (b) | 124,890 | 232,481 | ||||||
9,406,749 | ||||||||
Total Common Stocks | 14,156,201 | |||||||
REPURCHASE AGREEMENT (2.7%) | ||||||||
UNITED STATES (2.7%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $395,001 collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $403,888 | $ | 395,000 | 395,000 | |||||
Total Repurchase Agreement | 395,000 | |||||||
Total Investments | 14,551,201 | |||||||
Other assets in excess of liabilities—2.2% | 334,379 | |||||||
Net Assets—100.0% |
| $ | 14,885,580 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
20
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen China Opportunities Fund
(a) | Non-income producing security. |
(b) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(c) | Denotes a security issued under Regulation S or Rule 144A. |
(d) | China A Shares. These shares are issued in local currency, traded in the local stock markets and are held through a qualified foreign institutional investor license. |
(e) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
21
Aberdeen Emerging Markets Fund (Unaudited)
The Aberdeen Emerging Markets Fund (Institutional Class shares net of fees) returned 3.72% for the six-month period ended April 30, 2016, versus the -0.01% return of its benchmark, the MSCI Emerging Markets (EM) Index, during the same period. For broader comparison, the average return of the Fund’s peer category of Emerging Markets Funds (comprising 360 funds), as measured by Lipper, Inc., was -0.20% for the period.
EM equities posted a virtually flat return over the six-month period ended April 30, 2016. Investor sentiment initially was buoyed by prospects for continued monetary stimulus, particularly in Europe and China, but gains were soon reversed by the rout in crude oil prices. When the U.S. Federal Reserve (Fed) finally raised its benchmark interest rate in December 2015, the global equity markets’ reaction was muted; the impact had already largely been priced in. At the beginning of 2016, a sharp sell-off in Chinese shares and the continued slump in oil prices triggered a renewed bout of investor risk aversion. However, the Bank of Japan’s surprise move to impose negative interest rates and a rebound in commodity prices prompted a comeback. The Fed’s seemingly dovish comments raised hopes for a more gradual pace of rate hikes for the remainder of the 2016 calendar year, while the European Central Bank’s bolder-than-expected monetary policy easing further supported positive investor sentiment.
The primary contributors to Fund performance at the stock level for the reporting period included Brazilian holdings Banco Bradesco and mall operator Multiplan. Shares of the companies rose amid a rally in the Brazilian market, buoyed by the growing likelihood of President Dilma Rousseff’s impeachment and hopes of possible reforms. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. The position in Indonesia’s Astra International also enhanced Fund performance, as its shares gained ground on the promising pace of reforms and further monetary easing in the country.
Conversely, the Fund’s holding in Hong Kong-based property developer Hang Lung Group detracted from performance for the reporting period on growing investor concerns over its exposure to China. The position in Standard Chartered hindered Fund performance as the lender continued to be weighed down by higher loan loss provisions, a slowing Chinese economy and global economic growth concerns. This was compounded by the uncertainty created by the Bank of Japan’s imposition of negative interest rates in its latest attempt to boost spending. Despite these uncertainties, Standard Chartered has continued to strengthen its capital position by reducing exposure to riskier assets and streamlining its balance sheet, supported by focused and competent management, in our opinion. Finally, the Fund’s holding in Housing Development Finance Corporation (HDFC) was a detractor from performance, as the Indian lender was hampered by soft economic data and contagion fears from the reputed poor lending practices of state banks.
Over the reporting period, we initiated a holding in Hong Kong Exchanges and Clearing, as we believe that it has good growth prospects. We also switched from Banco Bradesco’s ordinary shares to preferred shares in an effort to capitalize on the widening discount between the stock prices. Additionally, we added to several positions that we believed had attractive valuations: Poland-based Bank Pekao, Brasil Foods, HDFC, Russian retailer Magnit, and two cement-makers, Indonesia’s Indocement and Thailand’s Siam Cement.
In contrast, we exited the position in South32, which the Fund had previously received from its spin-off from global miner BHP Billiton, as the stock rallied on better-than-expected operating results. We also trimmed the holdings in Brazil’s Banco Bradesco, Hungary-based pharmaceutical firm Gedeon Richter, India-based Hero MotoCorp, Russian oil company Lukoil, brewer SABMiller, Brazilian fuel distribution and chemical company Ultrapar, and Brazilian miner Vale following periods of relatively strong share price performance.
In our view, despite the recent recovery in emerging stock markets, there is little evidence to suggest that their economies are out of the woods yet. Amid subdued global growth, we think that persistent headwinds such as China’s slowdown may continue to sap investors’ optimism. In the absence of major fundamental catalysts and much-needed fiscal spending, accommodative monetary policies can only go so far in sustaining sentiment, in our opinion. However, we are more encouraged by developments at the corporate level. Despite the challenging operating environment, the Fund’s holdings generally are focusing on improving efficiency and strengthening their balance sheets. We believe that this may enable them to navigate tough times ahead and deliver long-term growth.
Portfolio Management:
Aberdeen Global Emerging Markets Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Semi-Annual Report 2016
22
Aberdeen Emerging Markets Fund (Unaudited) (concluded)
Equity stocks of small and mid-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
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Aberdeen Emerging Markets Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | Inception1,2 | ||||||||||||||
Class A3 | w/o SC | 3.51% | (10.94% | ) | (1.57% | ) | 4.76% | |||||||||||
w/SC4 | (2.47% | ) | (16.04% | ) | (2.73% | ) | 4.07% | |||||||||||
Class C3 | w/o SC | 3.18% | (11.49% | ) | (2.08% | ) | 4.45% | |||||||||||
w/SC5 | 2.18% | (12.36% | ) | (2.08% | ) | 4.45% | ||||||||||||
Class R3,6 | w/o SC | 3.25% | (11.30% | ) | (1.84% | ) | 4.60% | |||||||||||
Institutional Service Class6,7 | w/o SC | 3.63% | (10.77% | ) | (1.57% | ) | 4.77% | |||||||||||
Institutional Class6 | w/o SC | 3.72% | (10.63% | ) | (1.32% | ) | 4.91% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns prior to November 23, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Fund commenced operations on May 11, 2007. |
3 | Returns before the first offering of Class A, Class C and Class R (May 21, 2012) are based on the previous performance of the Institutional Class. This performance is substantially similar to what Class A, Class C and Class R would have produced because all classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the classes. |
4 | A 5.75% front-end sales charge was deducted. |
5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
6 | Not subject to any sales charges. |
7 | Returns before the first offering of the Institutional Service Class (November 23, 2009) are based on the previous performance of the Institutional Class. This performance is substantially similar to what Institutional Service Class would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the two classes. |
Semi-Annual Report 2016
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Aberdeen Emerging Markets Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Emerging Markets Fund, Morgan Stanley Capital International (MSCI) Emerging Markets Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets (EM) countries. With 836 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 91.1 | % | ||
Preferred Stocks | 7.2 | % | ||
Repurchase Agreement | 1.9 | % | ||
Liabilities in excess of other assets | (0.2 | %) | ||
100.0 | % |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 36.2% | |||
Consumer Staples | 17.8% | |||
Information Technology | 10.6% | |||
Consumer Discretionary | 9.4% | |||
Materials | 8.9% | |||
Energy | 7.9% | |||
Telecommunication Services | 4.9% | |||
Industrials | 1.5% | |||
Health Care | 1.1% | |||
Other | 1.7% | |||
100.0% |
Top Holdings* | ||||
Samsung Electronics Co. Ltd., Preferred Shares | 4.2% | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.3% | |||
AIA Group Ltd. | 3.1% | |||
Astra International Tbk PT | 3.1% | |||
Housing Development Finance Corp. Ltd. | 3.0% | |||
China Mobile Ltd. | 3.0% | |||
Fomento Economico Mexicano SAB de CV, ADR | 2.9% | |||
Grupo Financiero Banorte SAB de CV | 2.9% | |||
Ultrapar Participacoes SA | 2.6% | |||
Infosys Ltd. | 2.6% | |||
Other | 69.3% | |||
100.0% |
Top Countries | ||||
India | 15.3% | |||
Brazil | 10.8% | |||
Hong Kong | 8.5% | |||
Mexico | 7.8% | |||
South Africa | 6.8% | |||
China | 6.0% | |||
Republic of South Korea | 5.7% | |||
Turkey | 5.4% | |||
Thailand | 4.8% | |||
Indonesia | 4.4% | |||
Other | 24.5% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
25
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (91.1%) | ||||||||
BRAZIL (7.8%) | ||||||||
Consumer Discretionary (1.5%) | ||||||||
Lojas Renner SA | 17,803,550 | $ | 107,517,550 | |||||
Consumer Staples (1.2%) | ||||||||
BRF SA | 6,381,705 | 91,293,127 | ||||||
Energy (2.6%) | ||||||||
Ultrapar Participacoes SA | 9,108,000 | 191,786,395 | ||||||
Financials (1.5%) | ||||||||
Multiplan Empreendimentos Imobiliarios SA | 6,354,029 | 108,910,376 | ||||||
Materials (1.0%) | ||||||||
Vale SA, ADR | 12,405,571 | 70,339,587 | ||||||
569,847,035 | ||||||||
CHILE (1.2%) | ||||||||
Financials (1.2%) | ||||||||
Banco Santander Chile, ADR | 4,360,846 | 84,600,412 | ||||||
CHINA (6.0%) | ||||||||
Consumer Discretionary (1.5%) | ||||||||
Yum! Brands, Inc. | 1,441,000 | 114,645,960 | ||||||
Energy (1.5%) | ||||||||
PetroChina Co. Ltd., H Shares (a) | 149,132,200 | 109,109,577 | ||||||
Telecommunication Services (3.0%) | ||||||||
China Mobile Ltd. (a) | 18,998,600 | 218,118,442 | ||||||
441,873,979 | ||||||||
HONG KONG (8.5%) | ||||||||
Financials (8.5%) | ||||||||
AIA Group Ltd. (a) | 37,700,000 | 225,136,314 | ||||||
Hang Lung Group Ltd. (a) | 25,049,000 | 76,993,013 | ||||||
Hang Lung Properties Ltd. (a) | 38,882,000 | 77,420,839 | ||||||
Hong Kong Exchanges and Clearing Ltd. (a) | 2,750,300 | 69,362,814 | ||||||
Swire Pacific Ltd., Class A (a) | 10,000,000 | 108,421,826 | ||||||
Swire Pacific Ltd., Class B (a) | 15,945,000 | 31,047,426 | ||||||
Swire Properties Ltd. (a) | 13,957,100 | 36,330,118 | ||||||
624,712,350 | ||||||||
HUNGARY (1.1%) | ||||||||
Health Care (1.1%) | ||||||||
Richter Gedeon Nyrt (a) | 4,169,840 | 82,836,289 | ||||||
INDIA (15.3%) | ||||||||
Consumer Discretionary (1.4%) | ||||||||
Hero MotoCorp Ltd. (a) | 2,286,877 | 99,832,493 | ||||||
Consumer Staples (4.0%) | ||||||||
Hindustan Unilever Ltd. (a) | 8,215,443 | 107,571,136 | ||||||
ITC Ltd. (a) | 37,329,000 | 183,116,878 | ||||||
290,688,014 | ||||||||
Financials (4.3%) | ||||||||
Housing Development Finance Corp. Ltd. (a) | 13,489,633 | 221,372,150 | ||||||
ICICI Bank Ltd. (a) | 25,734,500 | 91,238,313 | ||||||
ICICI Bank Ltd., ADR | 160,500 | 1,131,525 | ||||||
313,741,988 | ||||||||
Information Technology (2.6%) | ||||||||
Infosys Ltd. (a) | 10,508,060 | 190,859,927 | ||||||
Materials (3.0%) | ||||||||
Grasim Industries Ltd. (a) | 1,691,416 | 104,058,019 | ||||||
UltraTech Cement Ltd. (a) | 2,472,250 | 117,517,667 | ||||||
221,575,686 | ||||||||
1,116,698,108 | ||||||||
INDONESIA (4.4%) | ||||||||
Consumer Discretionary (3.1%) | ||||||||
Astra International Tbk PT (a) | 442,684,500 | 224,642,236 | ||||||
Materials (1.3%) | ||||||||
Indocement Tunggal Prakarsa Tbk PT (a) | 66,714,800 | 99,382,920 | ||||||
324,025,156 | ||||||||
ITALY (1.6%) | ||||||||
Energy (1.6%) | ||||||||
Tenaris SA, ADR | 4,281,000 | 115,886,670 | ||||||
MALAYSIA (2.1%) | ||||||||
Financials (2.1%) | ||||||||
CIMB Group Holdings Bhd (a) | 47,985,442 | 57,259,131 | ||||||
Public Bank Bhd (a) | 19,459,200 | 93,081,864 | ||||||
150,340,995 | ||||||||
MEXICO (7.8%) | ||||||||
Consumer Staples (3.4%) | ||||||||
Fomento Economico Mexicano SAB de CV, ADR | 2,322,501 | 216,480,318 | ||||||
Organizacion Soriana SAB de CV, Class B (b) | 15,206,779 | 36,601,310 | ||||||
253,081,628 | ||||||||
Financials (2.9%) | ||||||||
Grupo Financiero Banorte SAB de CV | 36,798,148 | 209,222,207 | ||||||
Industrials (1.5%) | ||||||||
Grupo Aeroportuario del Sureste SAB de CV, ADR, B Shares | 722,315 | 111,120,939 | ||||||
573,424,774 | ||||||||
PHILIPPINES (4.1%) | ||||||||
Financials (4.1%) | ||||||||
Ayala Corp. (a) | 3,958,000 | 65,005,402 | ||||||
Ayala Land, Inc. (a) | 156,930,400 | 115,786,933 | ||||||
Bank of the Philippine Islands (a) | 60,725,894 | 117,155,700 | ||||||
297,948,035 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
26
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Fund
Shares or Principal Amount | Value | |||||||
POLAND (3.3%) | ||||||||
Consumer Staples (1.5%) | ||||||||
Jeronimo Martins SGPS SA (a) | 6,446,556 | $ | 105,545,218 | |||||
Financials (1.8%) | ||||||||
Bank Pekao SA (a) | 3,257,741 | 132,483,226 | ||||||
238,028,444 | ||||||||
REPUBLIC OF SOUTH KOREA (1.5%) | ||||||||
Consumer Staples (1.0%) | ||||||||
E-Mart Inc. (a) | 460,705 | 73,999,844 | ||||||
Information Technology (0.5%) | ||||||||
NAVER Corp. (a) | 64,600 | 38,285,005 | ||||||
112,284,849 | ||||||||
RUSSIA (3.9%) | ||||||||
Consumer Staples (1.7%) | ||||||||
Magnit PJSC (a) | 906,168 | 126,357,781 | ||||||
Energy (2.2%) | ||||||||
Lukoil PJSC, ADR | 3,718,043 | 158,016,828 | ||||||
284,374,609 | ||||||||
SOUTH AFRICA (6.8%) | ||||||||
Consumer Discretionary (1.9%) | ||||||||
Truworths International Ltd. (a) | 18,816,078 | 140,503,553 | ||||||
Consumer Staples (3.2%) | ||||||||
Massmart Holdings Ltd. (a) | 10,229,282 | 87,791,807 | ||||||
SABMiller PLC (a) | 2,372,100 | 144,994,990 | ||||||
232,786,797 | ||||||||
Materials (0.7%) | ||||||||
BHP Billiton PLC (a) | 3,894,549 | 53,454,307 | ||||||
Telecommunication Services (1.0%) | ||||||||
MTN Group Ltd. (a) | 6,958,000 | 72,839,811 | ||||||
499,584,468 | ||||||||
TAIWAN (4.2%) | ||||||||
Information Technology (3.3%) | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 51,969,117 | 238,765,246 | ||||||
Telecommunication Services (0.9%) | ||||||||
Taiwan Mobile Co. Ltd. (a) | 21,089,255 | 69,517,611 | ||||||
308,282,857 | ||||||||
THAILAND (4.8%) | ||||||||
Financials (2.3%) | ||||||||
Siam Commercial Bank PCL, Foreign Shares (a) | 44,170,100 | 168,332,522 | ||||||
Materials (2.5%) | ||||||||
Siam Cement PCL, Foreign Shares (a) | 11,821,000 | 165,581,871 | ||||||
Siam Cement PCL, NVDR (a) | 1,365,300 | 19,040,856 | ||||||
184,622,727 | ||||||||
352,955,249 | ||||||||
TURKEY (5.4%) | ||||||||
Consumer Staples (1.8%) | ||||||||
BIM Birlesik Magazalar A.S. (a) | 5,872,673 | 129,237,371 | ||||||
Financials (3.6%) | ||||||||
Akbank T.A.S. (a) | 44,195,608 | 135,796,660 | ||||||
Turkiye Garanti Bankasi A.S. (a) | 42,048,837 | 129,435,352 | ||||||
265,232,012 | ||||||||
394,469,383 | ||||||||
UNITED KINGDOM (1.3%) | ||||||||
Financials (1.3%) | ||||||||
Standard Chartered PLC (a) | 11,610,632 | 93,844,183 | ||||||
Total Common Stocks | 6,666,017,845 | |||||||
PREFERRED STOCKS (7.2%) | ||||||||
BRAZIL (3.0%) | ||||||||
Financials (2.6%) | ||||||||
Banco Bradesco SA, ADR, Preferred Shares | 25,418,143 | 189,873,530 | ||||||
Materials (0.4%) | ||||||||
Vale SA, ADR, Preferred Shares | 5,729,416 | 26,011,549 | ||||||
215,885,079 | ||||||||
REPUBLIC OF SOUTH KOREA (4.2%) | ||||||||
Information Technology (4.2%) | ||||||||
Samsung Electronics Co. Ltd., Preferred Shares (a) | 336,959 | 307,740,834 | ||||||
Total Preferred Stocks | 523,625,913 | |||||||
REPURCHASE AGREEMENT (1.9%) | ||||||||
UNITED STATES (1.9%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $138,713,347 collateralized by U.S. Treasury Note, maturing 08/31/2022; total market value of $141,489,081 | $ | 138,713,000 | 138,713,000 | |||||
Total Repurchase Agreement | 138,713,000 | |||||||
Total Investments (Cost $7,878,673,920) (c)—100.2% | 7,328,356,758 | |||||||
Liabilities in excess of other assets—(0.2)% |
| (13,010,560 | ) | |||||
Net Assets—100.0% |
| $ | 7,315,346,198 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADR | American Depositary Receipt |
NVDR | Non-Voting Depositary Receipt |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
27
Aberdeen Equity Long-Short Fund (Unaudited)
The Aberdeen Equity Long-Short Fund (Institutional Class shares net of fees) returned -1.08% for the six-month period ended April 30, 2016, versus 0.09% for its benchmark, the Citigroup 3-Month Treasury Bill Index, and 0.43% for the U.S. broader-market Standard & Poor’s (S&P) 500 Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Alternative Long/Short Equity Funds (consisting of 155 funds), as measured by Lipper, Inc., was -5.47% for the period.
Major North American equity market indices saw mixed performance amid periods of volatility over the six-month period ended April 30, 2016, with pronounced market weakness in January followed by a rebound in the latter half of the period as global economic concerns waned. Shares of U.S. small-cap companies, as represented by the Russell 2000 Index, returned -1.90% and underperformed their large-cap counterparts, as measured by the broader-market S&P 500 Index, which posted a modest gain of 0.43% for the period. The utilities and materials sectors were the strongest-performing sectors within the Russell 2000 Index for the reporting period, while the energy and healthcare sectors recorded negative returns and were the primary market laggards.
As widely expected, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (0.25%) in mid-December 2015, and subsequently left the benchmark interest rate unchanged following its meetings in January and March 2016. Towards the end of the reporting period in April 2016, the Fed announced its intention to maintain the federal funds rate at a range of 0.25%-0.50% for the foreseeable future. The central bank noted that, while household spending growth has moderated, real income has increased and consumer sentiment remains high. Perhaps more importantly, in our view, the Fed removed risk language referencing concerns about global economic and financial developments from its statement, which we believe may leave a June 2016 interest rate hike on the table.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) expanded by 1.4% in the fourth quarter of 2015, but subsequently decelerated to a 0.5% rate in the first quarter of 2016. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are subtracted from GDP), which offset the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the six-month reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate1 rose steadily for most of the reporting period before dipping slightly in April 2016, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
Despite the generally mixed outcome for stock prices over the reporting period, the Fund’s long positions enhanced performance and collectively outperformed both the S&P 500 and Russell 2000 indices.
Long holdings in the industrials, energy and materials sectors bolstered Fund performance for the reporting period. The most notable contributors to performance among individual stocks were long holdings in energy services provider Core Laboratories and specialty apparel retailer PVH Corp., along with the short exposure to fast-food restaurant chain operator Chipotle Mexican Grill.
Shares of Core Laboratories rose sharply along with those of its peers given the surge in oil prices over the second half of the reporting period. Furthermore, management also issued a cautiously optimistic business outlook for the remainder of the 2016 fiscal year. PVH Corp. bucked the recent trend of lagging performance in the consumer discretionary sector. The company’s results for the fourth quarter of its 2016 fiscal year were bolstered by notable strength in its Calvin Klein-branded product line, which offset relative weakness in its Heritage brands. Chipotle Mexican Grill reported its first quarterly loss in the first quarter of its 2016 fiscal year, as the company continued to see declining traffic in its stores in recent months following outbreaks of E. coli at its restaurants in several states. The slowdown in business compressed the company’s valuation and lowered expectations for its earnings power.
The aggregate return of the Fund’s short exposures exceeded that of the overall market, thereby hindering Fund performance over the period. Short positions in the industrials sectors, as well as long holdings in financials, had a negative impact on Fund performance. The primary individual stock detractors included short exposures to energy services provider Patterson-UTI Energy, Fastenal Co., a manufacturer of industrial and construction supplies, and truck manufacturer PACCAR Inc.
Shares of Patterson-UTI Energy moved higher in tandem with those of its peers in the energy sector due to the rally in oil and commodity prices in the second half of the reporting period. However, the company saw double-digit revenue declines in both its contract drilling and pressure pumping segments in the first quarter of its 2016 fiscal year. Fastenal reported better-than-expected daily sales growth for the first two months of 2016, most notably in its manufacturing unit, despite relative weakness in its core fasteners business. However, the company reported a slowdown in overall sales in March, which weighed on its first-quarter 2016 results. PACCAR posted generally better-than-expected results during the reporting period, bolstered by strength in its European business. This offset relative weakness in the U.S. and Canada.
Within the long segment of the Fund during the reporting period, we established new holdings in credit-rating agency Moody’s Corp.; diversified financial services company M&T Bank Corp.; industrial automation power company Rockwell Automation; Verisk, a risk assessment and data analytics company; industrial bearings manufacturer RBC Bearings; medical device maker Globus Medical; energy services provider Core Laboratories; medical technology products maker Teleflex; and flavors and fragrances maker Sensient Technologies. Conversely, we exited the Fund’s long positions in biopharmaceutical firm Baxalta; pharmaceutical firm Pfizer; IT
1 | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
Semi-Annual Report 2016
28
Aberdeen Equity Long-Short Fund (Unaudited) (concluded)
services provider EMC Corp.; fertilizer maker Potash Corp. of Saskatchewan; discount retailer Target; energy equipment manufacturer TransCanada; diversified industrial company Emerson Electric; diversified financial services companies Wells Fargo & Co. and American Express; asset management company BlackRock; digital wireless telecommunications equipment company Qualcomm; and hotel chain operator LaQuinta Holdings.
We initiated short positions in specialty retailer Tractor Supply Co.; The Gap, a specialty apparel retailer; diversified financial services company State Street Corp.; and Priceline Group, a provider of travel and restaurant reservation and related services. We exited the Fund’s short exposures to United Natural Foods; department store operator Kohl’s Corp.; diversified financial services company Northern Trust; and asset management firm Legg Mason.
At the end of the reporting period on April 30, 2016, the Fund had a net long position2 of roughly 41.5% and gross exposure3 of 132.5%, versus the respective 44% and 124% positions at the beginning of the period on November 1, 2015. The lower net exposure reflects the more volatile market environment and more volatile individual stock price movements.
We expect the equity markets to maintain the level of volatility that we have seen thus far in 2016. We believe that investors will continue to focus on Fed action (or inaction), the outcome of what has been a contentious U.S. presidential election, in addition to any impact from the macroeconomic environment beyond our borders. In short, we think that investor sentiment around these issues may dictate the performance of the markets more in the short term than actual underlying corporate fundamentals.
Stepping back and looking at our businesses, however, we feel that the underlying environment remains supportive, though it is not flourishing. Management teams of the companies that the Fund holds have reacted to the broader macroeconomic uncertainty, which has presented itself in fits and starts for the better part of a year. While capital investment has continued, albeit at a tepid pace, we have also seen companies more apt to borrow ahead of interest-rate increases, using the debt largely to fund mergers and acquisitions, and in rarer cases, share repurchase activity. We are constantly discussing the use of leverage with the management teams of the Fund’s company holdings in an effort to ensure that their borrowing does not lend risk to the companies’ balance sheets and that earnings per share (EPS) “accretion” (i.e., increasing the EPS) is not the driving motivation, but that every decision has a sound strategic rationale and improves the prospects for the business. Furthermore, we think there also remains uncertainty in actual supply/demand dynamics for commodity-related industries going forward, while more recently in the retail sector, companies are trying to move their business models to thrive – if not simply survive – in the new multi-channel retail landscape.
For the overall U.S. equity market, valuations are neither cheap nor expensive, but appear to be fair in the context of underlying earnings growth, in our opinion. Volatility presents challenges, but also opportunities. Amid this landscape, we feel that selectivity – and, therefore, active management – is crucial while we also feel that the Fund’s opportunity set for short positions has expanded with the somewhat indiscriminate market rebound late in the period.
We feel that the Fund’s opportunity set for short positions has expanded with the somewhat indiscriminate market rebound late in the period. We believe that market volatility such as this may continue to provide opportunities for fund positioning.
2 | The Fund’s net long position is the difference between the percentage of assets invested in long positions and the percentage of assets invested in short positions. |
3 | The Fund’s gross exposure is the sum of the percentage of assets invested in long positions plus the percentage of assets invested in short positions. |
Portfolio Management:
Aberdeen North American Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
There are special risks associated with selling securities short. A short position will lose value as the security’s price increases. Theoretically, the loss on a short sale can be unlimited. The use of leverage will also increase market exposure and magnify risk.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
29
Aberdeen Equity Long-Short Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | (1.23% | ) | 0.13% | 1.68% | 2.30% | ||||||||||||
w/SC2 | (6.92% | ) | (5.63% | ) | 0.49% | 1.70% | ||||||||||||
Class C | w/o SC | (1.55% | ) | (0.46% | ) | 1.00% | 5.51% | |||||||||||
w/SC3 | (2.33% | ) | (1.25% | ) | 1.00% | 5.51% | ||||||||||||
Class R4 | w/o SC | (1.30% | ) | (0.18% | ) | 1.31% | 1.94% | |||||||||||
Institutional Service Class4,5 | w/o SC | (1.10% | ) | 0.24% | 1.77% | 2.47% | ||||||||||||
Institutional Class4 | w/o SC | (1.08% | ) | 0.43% | 2.00% | 2.60% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns prior to June 23, 2008 incorporate the performance of a predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please see footnotes for the relevant classes and consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (November 1, 2009) are based on the previous performance of the Institutional Class. This performance is substantially similar to what the Institutional Service Class would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of differences in expenses of the two classes. |
Semi-Annual Report 2016
30
Aberdeen Equity Long-Short Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class C shares of the Aberdeen Equity Long-Short Fund, the S&P 500® Index, the Citigroup 3-Month Treasury Bill Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The S&P 500® Index represents large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available U.S. market capitalization. The Citigroup 3-Month Treasury Bill Index measures return equivalents of yield averages. The 3-Month Treasury Bill Index consists of the last three three-month Treasury bill month-end rates. The index is not marked to market.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Long Positions | ||||
Asset Allocation | ||||
Common Stocks | 87.1% | |||
Repurchase Agreement | 11.9% | |||
Other assets in excess of liabilities | 1.0% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors of Long Positions | ||||
Industrials | 14.3% | |||
Information Technology | 13.5% | |||
Financials | 12.6% | |||
Health Care | 11.9% | |||
Consumer Staples | 10.0% | |||
Consumer Discretionary | 9.4% | |||
Energy | 7.0% | |||
Materials | 6.4% | |||
Telecommunication Services | 2.0% | |||
Other | 12.9% | |||
100.0% |
Semi-Annual Report 2016
31
Aberdeen Equity Long-Short Fund (Unaudited) (concluded)
Top Holdings of Long Positions* | ||||
Visa, Inc., Class A | 3.7% | |||
PVH Corp. | 2.9% | |||
Cognizant Technology Solutions Corp., Class A | 2.8% | |||
Casey’s General Stores, Inc. | 2.8% | |||
Intercontinental Exchange, Inc. | 2.6% | |||
Equifax, Inc. | 2.6% | |||
EOG Resources, Inc. | 2.6% | |||
Texas Instruments, Inc. | 2.6% | |||
Charles Schwab Corp. (The) | 2.6% | |||
Lockheed Martin Corp. | 2.5% | |||
Other | 72.3% | |||
100.0% |
Short Positions | ||||
Asset Allocation | ||||
Common Stocks | 41.1% | |||
Exchange Traded Funds | 4.4% | |||
Other assets in excess of liabilities | 54.5% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Top Sectors of Short Positions | ||||
Consumer Discretionary | 9.1% | |||
Consumer Staples | 8.3% | |||
Financials | 7.4% | |||
Information Technology | 6.8% | |||
Industrials | 4.4% | |||
Health Care | 2.8% | |||
Energy | 2.3% | |||
Other | 58.9% | |||
100.0% |
Top Holdings of Short Positions | ||||
International Business Machines Corp. | 3.7% | |||
Clorox Co. | 3.1% | |||
B&G Foods, Inc. | 2.9% | |||
Allstate Corp. (The) | 2.7% | |||
State Street Corp. | 2.4% | |||
Powershares QQQ Trust, Series 1 | 2.3% | |||
FactSet Research Systems, Inc. | 2.3% | |||
Whole Foods Market, Inc. | 2.3% | |||
Patterson-UTI Energy, Inc. | 2.3% | |||
Fastenal Co. | 2.2% | |||
Other | 73.8% | |||
100.0% |
Semi-Annual Report 2016
32
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Equity Long-Short Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS—LONG POSITIONS (87.1%) |
| |||||||
Consumer Discretionary (9.4%) | ||||||||
BorgWarner, Inc. | 68,829 | $ | 2,472,338 | |||||
Comcast Corp., Class A | 32,349 | 1,965,525 | ||||||
PVH Corp. | 29,794 | 2,848,306 | ||||||
TJX Cos., Inc. | 24,997 | 1,895,273 | ||||||
9,181,442 | ||||||||
Consumer Staples (10.0%) | ||||||||
Casey’s General Stores, Inc. | 24,023 | 2,690,576 | ||||||
Costco Wholesale Corp. | 16,528 | 2,448,293 | ||||||
CVS Health Corp. | 24,443 | 2,456,521 | ||||||
Philip Morris International, Inc. | 22,420 | 2,199,850 | ||||||
9,795,240 | ||||||||
Energy (7.0%) | ||||||||
Core Laboratories NV | 16,004 | 2,139,095 | ||||||
EOG Resources, Inc. | 30,872 | 2,550,644 | ||||||
Schlumberger Ltd. | 26,700 | 2,145,078 | ||||||
6,834,817 | ||||||||
Financials (12.6%) | ||||||||
American International Group, Inc. | 32,497 | 1,813,983 | ||||||
Charles Schwab Corp. (The) | 88,921 | 2,526,246 | ||||||
Intercontinental Exchange, Inc. | 10,650 | 2,556,319 | ||||||
Jones Lang LaSalle, Inc. | 15,619 | 1,798,840 | ||||||
M&T Bank Corp. | 17,601 | 2,082,550 | ||||||
Moody’s Corp. | 16,714 | 1,599,864 | ||||||
12,377,802 | ||||||||
Health Care (11.9%) | ||||||||
Aetna, Inc. | 16,300 | 1,830,001 | ||||||
Baxter International, Inc. | 47,668 | 2,107,879 | ||||||
Gilead Sciences, Inc. | 24,058 | 2,122,156 | ||||||
Globus Medical, Inc., Class A (a) | 88,837 | 2,224,479 | ||||||
PAREXEL International Corp. (a) | 37,388 | 2,284,407 | ||||||
Teleflex, Inc. | 7,063 | 1,100,274 | ||||||
11,669,196 | ||||||||
Industrials (14.3%) | ||||||||
Canadian National Railway Co. | 35,284 | 2,172,083 | ||||||
Deere & Co. | 24,548 | 2,064,732 | ||||||
Equifax, Inc. | 21,214 | 2,550,984 | ||||||
Lockheed Martin Corp. | 10,700 | 2,486,466 | ||||||
RBC Bearings, Inc. (a) | 20,541 | 1,505,655 | ||||||
Rockwell Automation, Inc. | 14,346 | 1,627,841 | ||||||
Verisk Analytics, Inc. (a) | 20,943 | 1,624,758 | ||||||
14,032,519 | ||||||||
Information Technology (13.5%) | ||||||||
Alliance Data Systems Corp. (a) | 4,900 | 996,219 | ||||||
Cognizant Technology Solutions Corp., Class A (a) | 46,399 | 2,708,310 | ||||||
FEI Co. | 16,838 | 1,498,919 | ||||||
Oracle Corp. | 46,313 | 1,846,036 | ||||||
Texas Instruments, Inc. | 44,700 | 2,549,688 | ||||||
Visa, Inc., Class A | 46,877 | 3,620,779 | ||||||
13,219,951 | ||||||||
Materials (6.4%) | ||||||||
Ecolab, Inc. | �� | 19,816 | 2,278,444 | |||||
International Flavors & Fragrances, Inc. | 8,852 | 1,057,548 | ||||||
Praxair, Inc. | 16,300 | 1,914,598 | ||||||
Sensient Technologies Corp. | 15,303 | 1,029,127 | ||||||
6,279,717 | ||||||||
Telecommunication Services (2.0%) | ||||||||
Verizon Communications, Inc. | 38,498 | 1,961,088 | ||||||
Total Common Stocks—Long Positions | 85,351,772 | |||||||
REPURCHASE AGREEMENT (11.9%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $11,699,029 collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $11,937,688 | $ | 11,699,000 | 11,699,000 | |||||
Total Repurchase Agreement | 11,699,000 | |||||||
Total Investments | 97,050,772 | �� | ||||||
Other assets in excess of liabilities—1.0% | 937,058 | |||||||
Net Assets—100.0% |
| $ | 97,987,830 | |||||
COMMON STOCKS—SHORT POSITIONS (41.1%) |
| |||||||
Consumer Discretionary (9.1%) | ||||||||
Chipotle Mexican Grill, Inc. (a) | 3,610 | 1,519,702 | ||||||
Gap, Inc. | 74,700 | 1,731,546 | ||||||
Garmin Ltd. | 43,115 | 1,837,992 | ||||||
Leggett & Platt, Inc. | 26,300 | 1,296,327 | ||||||
Priceline Group, Inc. (a) | 750 | 1,007,745 | ||||||
Tractor Supply Co. | 16,300 | 1,542,958 | ||||||
8,936,270 | ||||||||
Consumer Staples (8.3%) | ||||||||
B&G Foods, Inc. | 68,827 | 2,836,361 | ||||||
Clorox Co. | 24,500 | 3,068,135 | ||||||
Whole Foods Market, Inc. | 76,833 | 2,234,303 | ||||||
8,138,799 | ||||||||
Energy (2.3%) | ||||||||
Patterson-UTI Energy, Inc. | 113,100 | 2,233,725 | ||||||
Financials (7.4%) | ||||||||
Allstate Corp. (The) | 39,842 | 2,591,722 | ||||||
FactSet Research Systems, Inc. | 15,000 | 2,261,250 | ||||||
State Street Corp. | 38,041 | 2,369,955 | ||||||
7,222,927 | ||||||||
Health Care (2.8%) | ||||||||
Agilent Technologies, Inc. | 41,400 | 1,694,088 | ||||||
Cardinal Health, Inc. | 13,072 | 1,025,629 | ||||||
2,719,717 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
33
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Equity Long-Short Fund
Shares or Principal Amount | Value | |||||||
Industrials (4.4%) | ||||||||
Fastenal Co. | 47,003 | $ | 2,199,270 | |||||
PACCAR, Inc. | 36,827 | 2,169,479 | ||||||
4,368,749 | ||||||||
Information Technology (6.8%) | ||||||||
CA, Inc. | 60,400 | 1,791,464 | ||||||
International Business Machines Corp. | 24,600 | 3,590,124 | ||||||
NetApp, Inc. | 56,197 | 1,328,497 | ||||||
6,710,085 | ||||||||
Total Common Stocks—Short Positions | 40,330,272 | |||||||
EXCHANGE TRADED FUNDS—SHORT POSITIONS (4.4%) | ||||||||
Equity Funds (4.4%) | ||||||||
Powershares QQQ Trust, Series 1 | 21,523 | 2,275,412 | ||||||
Utilities Select Sector SPDR Fund | 41,584 | 2,013,497 | ||||||
4,288,909 | ||||||||
Total Exchange Traded Funds—Short Positions | 4,288,909 | |||||||
Total Securities Sold Short (Proceeds $42,774,656)—45.5% | $ | 44,619,181 |
(a) | Non-income producing security. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
34
Aberdeen European Equity Fund (Unaudited)
The Aberdeen European Equity Fund (Institutional Class shares net of fees) returned -1.84% for the six-month period ended April 30, 2016, versus the -3.85% return of its benchmark, the FTSE World Europe Index, during the same period. For broader comparison, the average return of the Fund’s peer category of European Region Funds (comprising 99 funds), as measured by Lipper, Inc., was -3.54% for the period.
European equities lost ground over the six-month period ended April 30, 2016 amid the sell-off in Chinese equities and the continued decline in the oil price. Investor sentiment was dampened further by concerns over the health of the global economy, the UK’s referendum on European Union membership and lingering geopolitical worries resulting from the terror attacks in Paris and Brussels. Mitigating the declines were the U.S. Federal Reserve’s well-telegraphed interest-rate hike and its subsequent measured approach to future interest-rate increases, as well as the European Central Bank’s bolder-than-expected package of fresh stimulus that included cutting interest rates further into negative territory, extending its bond-buying and providing cheap short-term loans to banks.
In economic news, first-quarter 2016 gross domestic product (GDP) in the Eurozone* grew by a faster-than-expected rate of 0.6%, as the jobless rate improved, sliding to its lowest level in more than four years. However, private-sector activity was sluggish in April, with manufacturing failing to gain traction and services expanding more slowly than expected. Consumer prices were largely unchanged in March attributable mainly to weak oil prices.
In the UK, economic growth lost momentum in the first quarter of 2016, expanding by 0.4% from the previous quarter. Both the manufacturing and services sectors suffered from weaker demand. Although the jobless rate was steady, wage growth slowed unexpectedly and may have affected March retail sales. Inflation climbed by a faster-than-expected 0.5% on the back of higher airfares and clothing prices, but the Bank of England held interest rates steady as it fretted over the upcoming referendum on European Union (EU) membership.
Fund performance for the reporting period benefited from the position in Schindler Holding, a manufacturer of elevators and escalators. The company’s shares performed well on the back of encouraging results over the period as it continued to make good progress operationally, in our view. The Fund’s holding in Schoeller-Bleckmann also enhanced performance, as its shares rose on improvement in investor sentiment among stocks in the oil sector. Finally, the position in Temenos Group contributed to Fund performance, as its shares moved higher over the period despite the declining market. The banking software systems company’s first-quarter 2016 results exceeded expectations and the outlook for 2016 was upbeat, backed by new client acquisitions.
Conversely, Standard Chartered was the primary detractor from Fund performance for the reporting period, as the lender saw faltering growth in its key Asian markets, causing its portfolio credit quality to weaken. The Fund’s holding in Cobham hindered performance after the aerospace and defense company reported generally weaker-than-expected results for its 2015 fiscal year and expected the challenging trading backdrop to continue into 2016. Finally, the position in Prudential had a negative impact on Fund performance for the reporting period as the insurer’s shares declined on investors’ concerns that China may place restrictions on the purchase of insurance overseas.
Regarding key portfolio activity over the reporting period, we exited the Fund’s position in French retailer Casino Guichard to reinvest into what we viewed as more attractive opportunities. We subsequently initiated holdings in Bayer, a German speciality chemicals business which we believe may potentially provide improving returns as it restructures and simplifies its business; France-based Edenred, a leading provider of prepaid employee benefits, as we feel that it has a stable, cash-generative business, long-term growth potential and an attractive valuation; and Dutch eyewear retailer Grandvision, which benefits from favorable market dynamics and long-term growth prospects, in our opinion.
We believe that European stock markets are likely to remain challenging, with low growth and volatile commodity markets presenting difficult conditions for companies. In the UK, the upcoming EU referendum adds an additional layer of uncertainty. We also remain watchful over a slowdown in economic growth in emerging markets, particularly China. However, we are more optimistic about the longer-term prospects for these regions, as we feel that they are underpinned by powerful drivers such as population growth, urbanization and increasing middle-class wealth. While there are many reasons to be cautious on the macroeconomic outlook, we remain confident that the best way to generate attractive long-term returns is to invest in what we believe are globally competitive businesses with robust balance sheets and experienced management who are capable of navigating their way through this challenging environment.
Portfolio Management:
Aberdeen UK and European Equities Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
* | The Eurozone comprises 18 European Union member states that have adopted the euro as their common currency. |
Semi-Annual Report 2016
35
Aberdeen European Equity Fund (Unaudited) (concluded)
Risk Considerations
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Concentrating investments in Europe subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
A number of countries in Europe have experienced severe economic and financial difficulties. These difficulties may continue, worsen or spread within and outside Europe.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Because the Fund is non-diversified, the Fund may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return than it would of a diversified fund.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
36
Aberdeen European Equity Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | Inception1 | |||||||||||
Class A | w/o SC | (1.98% | ) | (10.69% | ) | (0.14% | ) | |||||||
w/SC2 | (7.59% | ) | (15.83% | ) | (2.03% | ) | ||||||||
Class C | w/o SC | (2.34% | ) | (11.33% | ) | (0.84% | ) | |||||||
w/SC3 | (3.31% | ) | (12.20% | ) | (0.84% | ) | ||||||||
Class R4 | w/o SC | (2.15% | ) | (10.93% | ) | (0.37% | ) | |||||||
Institutional Service Class4 | w/o SC | (1.94% | ) | (10.52% | ) | 0.13% | ||||||||
Institutional Class4 | w/o SC | (1.84% | ) | (10.61% | ) | 0.09% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on March 25, 2013. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2016 Semi-Annual Report
37
Aberdeen European Equity Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen European Equity Fund, FTSE World Europe Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The FTSE World Europe Index comprises large- and mid-cap stocks providing coverage of the Developed and Advanced Emerging markets in Europe excluding UK. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waiver and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 92.8% | |||
Other assets in excess of liabilities | 7.2% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Industrials | 20.8% | |||
Consumer Staples | 16.7% | |||
Financials | 13.4% | |||
Materials | 11.2% | |||
Health Care | 10.6% | |||
Consumer Discretionary | 7.5% | |||
Energy | 5.8% | |||
Information Technology | 4.1% | |||
Utilities | 2.7% | |||
Other | 7.2% | |||
100.0% |
Top Holdings | ||||
British American Tobacco PLC | 4.1% | |||
Roche Holding AG | 4.0% | |||
Prudential PLC | 3.6% | |||
Unilever PLC | 3.4% | |||
Nestle SA | 3.3% | |||
Royal Dutch Shell PLC, B Shares | 3.2% | |||
UBS Group AG | 3.1% | |||
Linde AG | 3.1% | |||
Novo Nordisk AS, Class B | 3.1% | |||
Atlas Copco AB, B Shares | 2.9% | |||
Other | 66.2% | |||
100.0% |
Top Countries | ||||
United Kingdom | 39.6% | |||
Switzerland | 20.5% | |||
Sweden | 9.7% | |||
Germany | 6.4% | |||
France | 6.1% | |||
Denmark | 4.3% | |||
Austria | 2.6% | |||
Norway | 2.2% | |||
Netherlands | 1.4% | |||
Other | 7.2% | |||
100.0% |
2016 Semi-Annual Report
38
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen European Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (92.8%) | ||||||||
AUSTRIA (2.6%) | ||||||||
Energy (2.6%) | ||||||||
Schoeller-Bleckmann Oilfield Equipment AG (a) | 555 | $ | 37,448 | |||||
DENMARK (4.3%) | ||||||||
Health Care (3.1%) | ||||||||
Novo Nordisk AS, Class B (a) | 790 | 44,109 | ||||||
Materials (1.2%) | ||||||||
Novozymes AS, B Shares (a) | 375 | 17,986 | ||||||
62,095 | ||||||||
FRANCE (6.1%) | ||||||||
Consumer Staples (1.6%) | ||||||||
L’Oreal SA (a) | 128 | 23,251 | ||||||
Industrials (3.1%) | ||||||||
Edenred (a) | 760 | 14,992 | ||||||
Schneider Electric SE (a) | 460 | 30,078 | ||||||
45,070 | ||||||||
Utilities (1.4%) | ||||||||
Engie (a) | 1,235 | 20,369 | ||||||
88,690 | ||||||||
GERMANY (6.4%) | ||||||||
Consumer Staples (1.8%) | ||||||||
Henkel AG & Co. KGaA (a) | 260 | 26,448 | ||||||
Health Care (1.5%) | ||||||||
Bayer AG (a) | 185 | 21,380 | ||||||
Materials (3.1%) | ||||||||
Linde AG (a) | 290 | 44,371 | ||||||
92,199 | ||||||||
NETHERLANDS (1.4%) | ||||||||
Consumer Discretionary (1.4%) | ||||||||
GrandVision N.V. (a) | 750 | 20,598 | ||||||
NORWAY (2.2%) | ||||||||
Industrials (2.2%) | ||||||||
Kongsberg Gruppen AS (a) | 1,885 | 31,602 | ||||||
SWEDEN (9.7%) | ||||||||
Financials (2.5%) | ||||||||
Nordea Bank AB (a) | 3,750 | 36,451 | ||||||
Industrials (5.4%) | ||||||||
Assa Abloy AB, Class B (a) | 1,685 | 35,406 | ||||||
Atlas Copco AB, B Shares (a) | 1,760 | 42,285 | ||||||
77,691 | ||||||||
Information Technology (1.8%) | ||||||||
Telefonaktiebolaget LM Ericsson, B Shares (a) | 3,225 | 26,130 | ||||||
140,272 | ||||||||
SWITZERLAND (20.5%) | ||||||||
Consumer Discretionary (2.0%) | ||||||||
Swatch Group AG (a) | 430 | 28,770 | ||||||
Consumer Staples (3.3%) | ||||||||
Nestle SA (a) | 640 | 47,769 | ||||||
Financials (3.1%) | ||||||||
UBS Group AG (a) | 2,570 | 44,552 | ||||||
Health Care (4.0%) | ||||||||
Roche Holding AG (a) | 228 | 57,686 | ||||||
Industrials (2.9%) | ||||||||
Schindler Holding AG (a) | 225 | 41,035 | ||||||
Information Technology (2.3%) | ||||||||
Temenos Group AG (a)(b) | 650 | 33,731 | ||||||
Materials (2.9%) | ||||||||
LafargeHolcim Ltd. (a)(b) | 480 | 24,372 | ||||||
Syngenta AG (a) | 44 | 17,651 | ||||||
42,023 | ||||||||
295,566 | ||||||||
UNITED KINGDOM (39.6%) | ||||||||
Consumer Discretionary (4.1%) | ||||||||
Compass Group PLC (a) | 1,665 | 29,651 | ||||||
Pearson PLC (a) | 2,500 | 29,459 | ||||||
59,110 | ||||||||
Consumer Staples (10.0%) | ||||||||
Associated British Foods PLC (a) | 365 | 16,374 | ||||||
British American Tobacco PLC (a) | 980 | 59,753 | ||||||
Tesco PLC (a)(b) | 8,055 | 20,251 | ||||||
Unilever PLC (a) | 1,080 | 48,256 | ||||||
144,634 | ||||||||
Energy (3.2%) | ||||||||
Royal Dutch Shell PLC, B Shares (a) | 1,744 | 45,788 | ||||||
Financials (7.8%) | ||||||||
Prudential PLC (a) | 2,650 | 52,310 | ||||||
Schroders PLC, Non-Voting Shares (a) | 865 | 24,722 | ||||||
Standard Chartered PLC (a) | 4,349 | 35,151 | ||||||
112,183 | ||||||||
Health Care (2.0%) | ||||||||
GlaxoSmithKline PLC (a) | 1,325 | 28,319 | ||||||
Industrials (7.2%) | ||||||||
Experian PLC (a) | 1,995 | 36,558 | ||||||
Rolls-Royce Holdings PLC, C Shares (b) | 294,650 | 431 | ||||||
Rolls-Royce Holdings PLC (a)(b) | 4,150 | 40,712 | ||||||
Weir Group PLC (The) (a) | 1,530 | 26,875 | ||||||
104,576 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
39
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen European Equity Fund
Shares or Principal Amount | Value | |||||||
Materials (4.0%) | ||||||||
BHP Billiton PLC (a) | 1,775 | $ | 24,254 | |||||
Croda International PLC (a) | 780 | 34,361 | ||||||
58,615 | ||||||||
Utilities (1.3%) | ||||||||
Centrica PLC (a) | 5,430 | 18,963 | ||||||
572,188 | ||||||||
Total Common Stocks | 1,340,658 | |||||||
Total Investments | 1,340,658 | |||||||
Other assets in excess of liabilities—7.2% | 104,053 | |||||||
Net Assets(c)—100.0% | $ | 1,444,711 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
40
Aberdeen Global Equity Fund (Unaudited)
The Aberdeen Global Equity Fund (Institutional Class shares net of fees) returned -1.27% for the six-month period ended April 30, 2016, versus the -0.74% return of its benchmark, the MSCI World Index, and the -0.65% return of its secondary benchmark, the MSCI All Country (AC) World Index, during the same period. For broader comparison, the average return of the Fund’s peer category of Global Large-Cap Core Funds (comprising 24 funds), as measured by Lipper, Inc., was -1.37% for the period.
Global equities posted modest losses during the six-month period ended April 30, 2016. Markets initially faced intense volatility, brought on partly by uncertainty over the timing of monetary policy normalization in the U.S. The Federal Reserve (Fed) finally raised its benchmark interest rate by 25 basis points (0.25%) in December 2015, amid a more upbeat U.S. employment outlook. Markets were also spooked by China’s monetary policy gaffes, yuan volatility and a stuttering economy, which triggered a sell-off in A-shares. This coincided with a low point in the ongoing rout in commodity prices that saw oil tumble to under US$30 a barrel in early February 2016. Investor sentiment picked up dramatically soon thereafter. Central banks in Japan and parts of Europe unexpectedly imposed negative interest rates in a bid to combat low inflation and boost consumer spending, while the European Central Bank introduced a bolder-than-expected package of fresh stimulus. The Fed lowered expectations for the number of rate hikes for the remainder of the 2016 calendar year amid growing caution over the fragile global recovery and deflationary pressures. The change in tone resulted in U.S. dollar weakness, which provided relief to commodities and commodity-related emerging markets such as Brazil.
The Fund’s position in Perrigo was a key detractor from performance. In keeping with weakness in the wider healthcare sector since the start of 2016, the drug-maker trimmed its first-quarter 2016 earnings estimates and full-year outlook, citing competitive pressures that have lowered price expectations. Lender Standard Chartered continued to be weighed down by higher loan loss provisions, a slowing Chinese economy and global economic growth concerns. This was compounded by the uncertainty created by the Bank of Japan’s imposition of negative interest rates. Despite these uncertainties, the lender has continued to strengthen its capital position by reducing exposure to riskier assets and streamlining its balance sheet, supported by focused, competent and professional management, in our view. Additionally, shares of Samsung Electronics moved lower over the reporting period despite releasing relatively positive first-quarter results on better-than-expected operating profits.
The Fund’s holding in Banco Bradesco was a key contributor to the Fund’s performance versus the benchmark MSCI AC World Index for the reporting period. Its shares rose on the back of increasing optimism about Brazilian President Dilma Rousseff’s impeachment and a regime change, which may potentially spur reforms to improve the ailing economy. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. Furthermore, Banco Bradesco’s operating results over the period were boosted by higher interest income and improved efficiency. While we believe that the company maintains good asset quality, bad-debt provisions have increased on the back of worsening loan delinquencies. The position in Japan Tobacco enhanced Fund performance, as its stock price rose on news that the company was seeking government approval to raise cigarette prices, which may boost operating profits. This was the first time since its 1985 initial public offering (IPO) that the company hiked prices when there had been no change in tax laws. The lack of exposure to Apple also benefited Fund performance, as the technology giant posted weaker-than-expected first-quarter 2016 results, with iPhone sales declining for the first time since its introduction in June 2007.
During the reporting period, we initiated positions in Indian bank Housing Development Finance Corporation, which we feel has efficient operations and a well-capitalized balance sheet; MTR Corporation, which in our view has robust city-rail operations in Hong Kong and China, with a strong business model that also allows it to develop property; American software provider Amdocs, which benefits from increased outsourcing in its core segments; Michigan-based Perrigo, which has an effective distribution network; Kasikornbank, a leading Thai commercial lender; and Japan’s Keyence, a market leader that taps into growing demand for factory automation. In contrast, we exited positions in diversified healthcare company Baxter International, French energy management company Schneider Electric and Zurich Insurance, to fund what we believed were better opportunities elsewhere. We also sold the Fund’s shares in Nordea, as we feel that its growth potential seems limited, and Brazilian miner Vale due to our concerns about market imbalances between supply and demand. Finally, we exited the position in HSBC, given our worries about the continuing drag on the financial services company’s performance from regulatory and compliance requirements.
We expect global equities to remain very volatile in the near term. Despite recent relief rallies, there has been no extended market turnaround, as economic fundamentals have not changed substantially. Many unknowns remain – investors are wary of the effectiveness of central bank action, governments need to implement more proactive reforms, and there does not appear to be a sustained demand for commodities. We think that all of these factors raise the specter of a protracted global slump. Many of the companies that the Fund holds are taking the opportunity to strengthen their balance sheets. Notwithstanding the unpredictable climate, we maintain our confidence in our investment process, picking stocks that we believe are well-managed market leaders with efficient operations. We take advantage of market turbulence to add to these high-quality holdings, which we feel can bolster the Fund’s performance.
Portfolio Management:
Aberdeen Global Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal
2016 Semi-Annual Report
41
Aberdeen Global Equity Fund (Unaudited) (concluded)
value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
42
Aberdeen Global Equity Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||
Class A | w/o SC | (1.46%) | (11.46%) | 1.11% | 2.05% | |||||||||
w/SC2 | (7.11%) | (16.52%) | (0.08% | ) | 1.44% | |||||||||
Class C | w/o SC | (1.80%) | (12.08%) | 0.44% | 1.35% | |||||||||
w/SC3 | (2.78%) | (12.95%) | 0.44% | 1.35% | ||||||||||
Class R4 | w/o SC | (1.61%) | (11.75%) | 0.85% | 1.77% | |||||||||
Institutional Service Class4,5 | w/o SC | (1.25%) | (11.09%) | 1.44% | 2.21% | |||||||||
Institutional Class4 | w/o SC | (1.27%) | (11.19%) | 1.46% | 2.28% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns prior to June 23, 2008 incorporate the performance of a predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please see footnotes for the relevant classes and consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (December 19, 2011) are based on the previous performance of the Fund’s Class A shares. This performance is substantially similar to what the Institutional Service Class would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the classes. |
2016 Semi-Annual Report
43
Aberdeen Global Equity Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Global Equity Fund, Morgan Stanley Capital International (MSCI) World Index, MSCI All Country World Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses or sales charges. Investors cannot invest directly in market indexes.
The MSCI World Index captures large and mid cap representation across 23 Developed Markets (DM) countries. With 1,644 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US.
MSCI ACWI captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 90.7% | |||
Preferred Stocks | 6.3% | |||
Repurchase Agreement | 3.5% | |||
Liabilities in excess of other assets | (0.5% | ) | ||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Consumer Staples | 21.3% | |||
Information Technology | 16.9% | |||
Financials | 14.1% | |||
Health Care | 12.3% | |||
Industrials | 9.7% | |||
Energy | 9.2% | |||
Materials | 6.1% | |||
Telecommunication Services | 3.7% | |||
Consumer Discretionary | 3.7% | |||
Other | 3.0% | |||
100.0% |
Top Holdings* | ||||
EOG Resources, Inc. | 4.0% | |||
Novartis AG | 3.6% | |||
Roche Holding AG | 3.6% | |||
CVS Health Corp. | 3.3% | |||
British American Tobacco PLC | 3.1% | |||
Samsung Electronics Co. Ltd., GDR, Preferred Shares | 3.0% | |||
Japan Tobacco, Inc. | 2.9% | |||
Oracle Corp. | 2.9% | |||
PepsiCo, Inc. | 2.9% | |||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 2.7% | |||
Other | 68.0% | |||
100.0% |
Top Countries | ||||
United States | 38.8% | |||
United Kingdom | 12.5% | |||
Switzerland | 9.3% | |||
Japan | 9.2% | |||
Hong Kong | 5.3% | |||
Republic of South Korea | 3.0% | |||
Canada | 3.0% | |||
Germany | 2.9% | |||
Taiwan | 2.7% | |||
India | 2.4% | |||
Other | 10.9% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
44
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Global Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (90.7%) | ||||||||
CANADA (3.0%) | ||||||||
Industrials (1.6%) | ||||||||
Canadian National Railway Co. | 23,700 | $ | 1,459,362 | |||||
Materials (1.4%) | ||||||||
Potash Corp. of Saskatchewan, Inc. | 73,600 | 1,302,240 | ||||||
2,761,602 | ||||||||
GERMANY (1.3%) | ||||||||
Health Care (1.3%) | ||||||||
Fresenius Medical Care AG & Co. KGaA (a) | 14,400 | 1,253,334 | ||||||
HONG KONG (5.3%) | ||||||||
Financials (2.8%) | ||||||||
AIA Group Ltd. (a) | 297,300 | 1,775,412 | ||||||
Swire Pacific Ltd., Class A (a) | 75,800 | 821,837 | ||||||
2,597,249 | ||||||||
Industrials (2.5%) | ||||||||
Jardine Matheson Holdings Ltd. (a) | 25,900 | 1,428,440 | ||||||
MTR Corp. Ltd. (a) | 194,500 | 962,844 | ||||||
2,391,284 | ||||||||
4,988,533 | ||||||||
INDIA (2.4%) | ||||||||
Consumer Staples (0.9%) | ||||||||
ITC Ltd. (a) | 171,300 | 840,310 | ||||||
Financials (1.5%) | ||||||||
Housing Development Finance Corp. Ltd. (a) | 84,400 | 1,385,049 | ||||||
2,225,359 | ||||||||
ISRAEL (1.8%) | ||||||||
Information Technology (1.8%) | ||||||||
Check Point Software Technologies Ltd. (b) | 20,700 | 1,715,409 | ||||||
ITALY (1.5%) | ||||||||
Energy (1.5%) | ||||||||
Tenaris SA, ADR | 51,900 | 1,404,933 | ||||||
JAPAN (9.2%) | ||||||||
Consumer Staples (2.9%) | ||||||||
Japan Tobacco, Inc. (a) | 66,300 | 2,708,880 | ||||||
Financials (1.5%) | ||||||||
Daito Trust Construction Co. Ltd. (a) | 9,800 | 1,386,036 | ||||||
Industrials (1.4%) | ||||||||
FANUC Corp. (a) | 8,710 | 1,286,658 | ||||||
Information Technology (1.0%) | ||||||||
Keyence Corp. (a) | 1,600 | 959,028 | ||||||
Materials (2.4%) | ||||||||
Shin-Etsu Chemical Co. Ltd. (a) | 40,000 | 2,240,351 | ||||||
8,580,953 | ||||||||
MEXICO (2.0%) | ||||||||
Consumer Staples (2.0%) | ||||||||
Fomento Economico Mexicano SAB de CV, ADR | 19,900 | 1,854,879 | ||||||
SINGAPORE (0.9%) | ||||||||
Financials (0.9%) | ||||||||
City Developments Ltd. (a) | 133,400 | 825,128 | ||||||
SOUTH AFRICA (1.2%) | ||||||||
Telecommunication Services (1.2%) | ||||||||
MTN Group Ltd. (a) | 108,300 | 1,133,738 | ||||||
SWEDEN (1.4%) | ||||||||
Industrials (1.4%) | ||||||||
Atlas Copco AB, A Shares (a) | 52,300 | 1,354,949 | ||||||
SWITZERLAND (9.3%) | ||||||||
Consumer Staples (2.1%) | ||||||||
Nestle SA (a) | 26,100 | 1,948,095 | ||||||
Health Care (7.2%) | ||||||||
Novartis AG (a) | 44,300 | 3,371,328 | ||||||
Roche Holding AG (a) | 13,300 | 3,365,022 | ||||||
6,736,350 | ||||||||
8,684,445 | ||||||||
TAIWAN (2.7%) | ||||||||
Information Technology (2.7%) | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 109,100 | 2,573,669 | ||||||
THAILAND (0.9%) | ||||||||
Financials (0.9%) | ||||||||
Kasikornbank PCL (a) | 179,000 | 854,048 | ||||||
UNITED KINGDOM (12.5%) | ||||||||
Consumer Staples (3.1%) | ||||||||
British American Tobacco PLC (a) | 48,300 | 2,944,952 | ||||||
Energy (1.9%) | ||||||||
Royal Dutch Shell PLC, B Shares (a) | 68,600 | 1,801,084 | ||||||
Financials (1.4%) | ||||||||
Standard Chartered PLC (a) | 160,130 | 1,294,268 | ||||||
Industrials (2.8%) | ||||||||
Experian PLC (a) | 77,600 | 1,422,002 | ||||||
Rolls-Royce Holdings PLC, C Shares (b) | 8,381,270 | 12,247 | ||||||
Rolls-Royce Holdings PLC (a)(b) | 118,046 | 1,158,060 | ||||||
2,592,309 | ||||||||
Materials (0.8%) | ||||||||
BHP Billiton PLC (a) | 55,600 | 759,746 | ||||||
Telecommunication Services (2.5%) | ||||||||
Vodafone Group PLC (a) | 715,300 | 2,304,581 | ||||||
11,696,940 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
45
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Global Equity Fund
Shares or Principal Amount | Value | |||||||
UNITED STATES (35.3%) | ||||||||
Consumer Discretionary (3.7%) | ||||||||
Comcast Corp., Class A | 30,100 | $ | 1,828,876 | |||||
TJX Cos., Inc. | 20,900 | 1,584,638 | ||||||
3,413,514 | ||||||||
Consumer Staples (8.7%) | ||||||||
CVS Health Corp. | 30,500 | 3,065,250 | ||||||
PepsiCo, Inc. | 26,200 | 2,697,552 | ||||||
Philip Morris International, Inc. | 24,300 | 2,384,316 | ||||||
8,147,118 | ||||||||
Energy (5.8%) | ||||||||
EOG Resources, Inc. | 45,000 | 3,717,900 | ||||||
Schlumberger Ltd. | 21,800 | 1,751,412 | ||||||
5,469,312 | ||||||||
Financials (3.4%) | ||||||||
Intercontinental Exchange, Inc. | 4,900 | 1,176,147 | ||||||
M&T Bank Corp. | 16,700 | 1,975,944 | ||||||
3,152,091 | ||||||||
Health Care (3.8%) | ||||||||
Johnson & Johnson | 19,000 | 2,129,520 | ||||||
Perrigo Co. PLC | 14,700 | 1,421,049 | ||||||
3,550,569 | ||||||||
Information Technology (8.4%) | ||||||||
Amdocs Ltd. | 23,900 | 1,351,306 | ||||||
Cognizant Technology Solutions Corp., Class A (b) | 31,800 | 1,856,166 | ||||||
Oracle Corp. | 67,700 | 2,698,522 | ||||||
Visa, Inc., Class A | 25,700 | 1,985,068 | ||||||
7,891,062 | ||||||||
Materials (1.5%) | ||||||||
Praxair, Inc. | 11,950 | 1,403,647 | ||||||
33,027,313 | ||||||||
Total Common Stocks | 84,935,232 | |||||||
PREFERRED STOCKS (6.3%) | ||||||||
BRAZIL (1.7%) | ||||||||
Financials (1.7%) | ||||||||
Banco Bradesco SA, ADR, Preferred Shares | 215,710 | 1,611,354 | ||||||
GERMANY (1.6%) | ||||||||
Consumer Staples (1.6%) | ||||||||
Henkel AG & Co. KGaA, Preferred Shares (a) | 13,400 | 1,530,533 | ||||||
REPUBLIC OF SOUTH KOREA (3.0%) | ||||||||
Information Technology (3.0%) | ||||||||
Samsung Electronics Co. Ltd., GDR, Preferred Shares (c) | 6,100 | 2,763,300 | ||||||
Total Preferred Stocks | 5,905,187 | |||||||
REPURCHASE AGREEMENT (3.5%) | ||||||||
UNITED STATES (3.5%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $3,268,008, collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $3,336,725 | $ | 3,268,000 | 3,268,000 | |||||
Total Repurchase Agreement | 3,268,000 | |||||||
Total Investments | 94,108,419 | |||||||
Liabilities in excess of other assets—(0.5)% | (499,148 | ) | ||||||
Net Assets—100.0% | $ | 93,609,271 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | Denotes a security issued under Regulation S or Rule 144A. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
46
Aberdeen Global Natural Resources Fund (Unaudited)
The Aberdeen Global Natural Resources Fund (Institutional Class shares net of fees) returned 3.85% for the six-month period ended April 30, 2016, versus the -0.65% return of its benchmark, the MSCI All Country (AC) World Index, and the 11.25% return of the S&P Global Natural Resources Index for the same period. For broader comparison, the average return of the Fund’s peer category of Global Natural Resources Funds (comprising 54 funds), as measured by Lipper, Inc., was 2.11% for the period.
Global natural resources stocks rose over the six-month period ended April 30, 2016, outperforming the broader global equity market, as represented by the MSCI AC World Index. For most of the first half of the period, oil prices fell on concerns over a supply glut and sluggish demand. However, prices rebounded sharply beginning in mid-February 2016 on speculation of a production freeze between major exporters, including Saudi Arabia and Russia. After a much-anticipated benchmark interest-rate hike in December, the U.S. Federal Reserve’s (Fed’s) dovish comments indicating a gentler pace of rate hikes sent the U.S. dollar lower. This further stabilized oil prices, although it was not enough to erase earlier losses. Other commodities, such as iron ore and copper, also rallied towards the end of the reporting period, mirroring the recovery in oil prices. The gold price posted sharp gains over the reporting period, buoyed initially by rising global uncertainty and, subsequently, the Fed’s cautious stance.
The primary contributor to Fund performance at the individual stock level was Goldcorp, as its share price rose amid the upturn in the gold price. Brazilian miner Vale benefited from healthy first-quarter 2016 results and a sharp rally in the Brazilian market. Investor sentiment was lifted by the increased likelihood of President Dilma Rousseff’s impeachment and a regime change, which may potentially spur reforms to improve the economy. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. Additionally, the absence of a position in BP enhanced Fund performance as the integrated oil and gas company reported its worst-ever annual loss for its 2015 fiscal year amid the low oil-price environment.
Conversely, the Fund’s lack of exposure to Barrick Gold hindered Fund performance for the reporting period, as the gold producer’s shares rose along with the higher gold price. The company’s full-year 2015 earnings did not meet our expectations; on a more positive note, the company managed to reduce debt and improved cash flows. Another detractor from Fund performance was the holding in Linde, which reported muted trading activity as the sluggish global economy crimped demand for industrial gases and its engineering business received fewer orders. Management reaffirmed its outlook for slower growth in 2016, but nonetheless felt confident enough to increase its dividend by 10%. Finally, EOG Resources’ results over the reporting period generally did not meet the market’s expectations due to asset write-downs given the low oil-price environment. However, the company’s expenses remain well controlled, in our opinion.
During the reporting period, we initiated holdings in Deere & Co., which is dominant in the agriculture machinery space with a strong dealer network and a solid balance sheet, in our view; Givaudan, a Swiss flavor and fragrance maker that we feel provides healthy returns and cash-generation; Bayer, a German pharmaceutical company that we believe has an attractive spread of businesses and chemical and agricultural exposures; Frutarom, a well-managed flavor and fragrance company, in our view; Brenntag, a leading German chemical distributor; and Randgold Resources, a gold company that we feel has a robust balance sheet and good asset quality. Conversely, we exited the Fund’s position in energy equipment manufacturer National Oilwell Varco given ongoing structural headwinds for the business.
We remain mindful of the challenging outlook for the resources sector. Despite a rebound in oil prices, we are still concerned about the supply glut as fundamentals have not changed substantially. Furthermore, we think that investors are wary of the effectiveness of central bank action and prospects of a faster-than-expected U.S. interest-rate hike that could weaken gold’s appeal. Notwithstanding the unpredictable climate, we maintain confidence in our investment process, picking stocks that we feel are well-managed market leaders with efficient operations. We take advantage of market turbulence to add to these high-quality holdings, which may potentially bolster the Fund’s performance.
Portfolio Management:
Aberdeen Global Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Investing 25% or more of the Fund’s net assets in natural resources industries subjects the Fund to greater risk of loss and is considerably more volatile compared to investments that are diversified across a greater number of industries.
The natural resources industry can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and tax and other government regulations. The securities of companies in the natural resources sector may experience more price volatility than securities of companies in other industries.
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47
Aberdeen Global Natural Resources Fund (Unaudited) (concluded)
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Please read the prospectus for more detailed information regarding these and other risks.
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48
Aberdeen Global Natural Resources Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 3.72% | (14.53% | ) | (8.07% | ) | (1.52% | ) | ||||||||||
w/SC2 | (2.22% | ) | (19.45% | ) | (9.15% | ) | (2.10% | ) | ||||||||||
Class C | w/o SC | 3.42% | (15.12% | ) | (8.70% | ) | (2.19% | ) | ||||||||||
w/SC3 | 2.42% | (15.95% | ) | (8.70% | ) | (2.19% | ) | |||||||||||
Class R4 | w/o SC | 3.62% | (14.73% | ) | (8.27% | ) | (1.73% | ) | ||||||||||
Institutional Service Class4 | w/o SC | 3.85% | (14.26% | ) | (7.77% | ) | (1.20% | ) | ||||||||||
Institutional Class4 | w/o SC | 3.85% | (14.25% | ) | (7.79% | ) | (1.21% | ) |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns incorporate the performance of a predecessor fund (the “Predecessor Fund”) from inception to June 23, 2008. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
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49
Aberdeen Global Natural Resources Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Global Natural Resources Fund, the Morgan Stanley Capital International (MSCI) All Country World Index, the S&P Global Natural Resources Index™, and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
MSCI ACWI captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The S&P Global Natural Resources Index™ includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, with exposure across 3 primary commodity-related sectors: Agribusiness, Energy, and Metals & Mining.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 93.7% | |||
Repurchase Agreement | 3.3% | |||
Preferred Stocks | 2.6% | |||
Other assets in excess of liabilities | 0.4% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Materials | 50.9% | |||
Energy | 34.0% | |||
Industrials | 8.1% | |||
Health Care | 1.8% | |||
Consumer Staples | 1.5% | |||
Other | 3.7% | |||
100.0% |
Top Holdings* | ||||
EOG Resources, Inc. | 7.2% | |||
Goldcorp, Inc. | 5.6% | |||
Rio Tinto PLC | 5.1% | |||
Royal Dutch Shell PLC, B Shares | 5.1% | |||
Tenaris SA, ADR | 4.8% | |||
BHP Billiton PLC | 4.7% | |||
Schlumberger Ltd. | 4.6% | |||
Praxair, Inc. | 4.5% | |||
Shin-Etsu Chemical Co. Ltd. | 4.5% | |||
Potash Corp. of Saskatchewan, Inc. | 4.4% | |||
Other | 49.5% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
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50
Aberdeen Global Natural Resources Fund (Unaudited) (concluded)
Top Countries | ||||
United States | 29.1% | |||
United Kingdom | 19.1% | |||
Canada | 11.7% | |||
Germany | 10.2% | |||
Italy | 7.8% | |||
Brazil | 6.2% | |||
Japan | 4.5% | |||
France | 3.0% | |||
Chile | 2.6% | |||
Denmark | 1.9% | |||
Other | 3.9% | |||
100.0% |
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51
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Global Natural Resources Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (93.7%) | ||||||||
BRAZIL (6.2%) | ||||||||
Industrials (3.2%) | ||||||||
Wilson Sons Ltd., BDR | 77,800 | $ | 696,733 | |||||
Materials (3.0%) | ||||||||
Vale SA, ADR | 113,600 | 644,112 | ||||||
1,340,845 | ||||||||
CANADA (11.7%) | ||||||||
Industrials (1.7%) | ||||||||
Canadian National Railway Co. | 5,900 | 363,204 | ||||||
Materials (10.0%) | ||||||||
Goldcorp, Inc. | 59,900 | 1,206,880 | ||||||
Potash Corp. of Saskatchewan, Inc. | 54,000 | 956,880 | ||||||
2,163,760 | ||||||||
2,526,964 | ||||||||
DENMARK (1.9%) | ||||||||
Materials (1.9%) | ||||||||
Novozymes AS, B Shares (a) | 8,500 | 407,679 | ||||||
FRANCE (3.0%) | ||||||||
Energy (3.0%) | ||||||||
TOTAL SA (a) | 12,600 | 636,814 | ||||||
GERMANY (10.2%) | ||||||||
Consumer Staples (1.5%) | ||||||||
KWS Saat SE (a) | 950 | 329,665 | ||||||
Health Care (1.8%) | ||||||||
Bayer AG (a) | 3,400 | 392,927 | ||||||
Industrials (1.1%) | ||||||||
Brenntag AG (a) | 3,800 | 223,207 | ||||||
Materials (5.8%) | ||||||||
BASF SE (a) | 3,600 | 297,831 | ||||||
FUCHS PETROLUB SE (a) | 7,300 | 269,398 | ||||||
Linde AG (a) | 4,500 | 688,508 | ||||||
1,255,737 | ||||||||
2,201,536 | ||||||||
ISRAEL (1.4%) | ||||||||
Materials (1.4%) | ||||||||
Frutarom Industries Ltd. (a) | 5,700 | 296,394 | ||||||
ITALY (7.8%) | ||||||||
Energy (7.8%) | ||||||||
Eni SpA (a) | 39,600 | 646,943 | ||||||
Tenaris SA, ADR | 38,300 | 1,036,781 | ||||||
1,683,724 | ||||||||
JAPAN (4.5%) | ||||||||
Materials (4.5%) | ||||||||
Shin-Etsu Chemical Co. Ltd. (a) | 17,300 | 968,952 | ||||||
NETHERLANDS (1.2%) | ||||||||
Energy (1.2%) | ||||||||
Koninklijke Vopak NV (a) | 4,600 | 250,098 | ||||||
SWITZERLAND (0.9%) | ||||||||
Materials (0.9%) | ||||||||
Givaudan SA (a) | 100 | 197,386 | ||||||
UNITED KINGDOM (19.1%) | ||||||||
Energy (6.7%) | ||||||||
John Wood Group PLC (a) | 39,000 | 356,775 | ||||||
Royal Dutch Shell PLC, B Shares (a) | 41,800 | 1,097,453 | ||||||
1,454,228 | ||||||||
Industrials (1.1%) | ||||||||
Weir Group PLC (The) (a) | 12,900 | 226,597 | ||||||
Materials (11.3%) | ||||||||
BHP Billiton PLC (a) | 74,100 | 1,012,539 | ||||||
Randgold Resources Ltd. (a) | 3,200 | 319,642 | ||||||
Rio Tinto PLC (a) | 32,900 | 1,103,674 | ||||||
2,435,855 | ||||||||
4,116,680 | ||||||||
UNITED STATES (25.8%) | ||||||||
Energy (15.3%) | ||||||||
Chevron Corp. | 7,300 | 745,914 | ||||||
EOG Resources, Inc. | 18,900 | 1,561,518 | ||||||
Schlumberger Ltd. | 12,200 | 980,148 | ||||||
3,287,580 | ||||||||
Industrials (1.0%) | ||||||||
Deere & Co. | 2,500 | 210,275 | ||||||
Materials (9.5%) | ||||||||
Compass Minerals International, Inc. | 2,300 | 172,408 | ||||||
Monsanto Co. | 9,700 | 908,696 | ||||||
Praxair, Inc. | 8,300 | 974,918 | ||||||
2,056,022 | ||||||||
5,553,877 | ||||||||
Total Common Stocks | 20,180,949 | |||||||
PREFERRED STOCKS (2.6%) | ||||||||
CHILE (2.6%) | ||||||||
Materials (2.6%) | ||||||||
Sociedad Quimica y Minera de Chile SA, ADR, Preferred Shares | 27,000 | 562,410 | ||||||
Total Preferred Stocks | 562,410 |
See accompanying Notes to Financial Statements.
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52
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Global Natural Resources Fund
Shares or Principal Amount | Value | |||||||
REPURCHASE AGREEMENT (3.3%) | ||||||||
UNITED STATES (3.3%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $716,002 collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $730,556 | $ | 716,000 | $ | 716,000 | ||||
Total Repurchase Agreement | 716,000 | |||||||
Total Investments | 21,459,359 | |||||||
Other assets in excess of liabilities—0.4% | 94,307 | |||||||
Net Assets—100.0% |
| $ | 21,553,666 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADR | American Depositary Receipt |
BDR | Brazilian Depositary Receipt |
See accompanying Notes to Financial Statements.
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53
Aberdeen International Equity Fund (Unaudited)
The Aberdeen International Equity Fund (Institutional Class shares net of fees) returned -1.70% for the six-month period ended April 30, 2016, versus the -1.51% return of its benchmark, the MSCI All Country (AC) World ex USA Index, during the same period. For broader comparison, the average return of the Fund’s peer category of International Large-Cap Core Funds (comprising 54 funds), as measured by Lipper, Inc., was -3.70% for the period.
International equities fell during the six-month period ended April 30, 2016. Markets initially faced intense volatility, brought on partly by uncertainty over the timing of monetary policy normalization in the U.S. The Federal Reserve (Fed) finally raised its benchmark interest rate by 25 basis points (0.25%) in December 2015, amid a more upbeat U.S. employment outlook. Markets were also spooked by China’s monetary policy gaffes, yuan volatility and a stuttering economy, which triggered a sell-off in A-shares. This coincided with a low point in the ongoing rout in commodity prices that saw oil tumble to under US$30 a barrel in early February 2016. Investor sentiment picked up dramatically soon thereafter. Central banks in Japan and parts of Europe unexpectedly imposed negative interest rates in a bid to combat low inflation and boost consumer spending, while the European Central Bank introduced a bolder-than-expected package of fresh stimulus. The Fed lowered expectations for the number of rate hikes for the remainder of the 2016 calendar year amid growing caution over the fragile global recovery and deflationary pressures. The change in tone resulted in U.S. dollar weakness, which provided relief to commodities and commodity-related emerging markets such as Brazil.
The Fund’s holding in Japan Tobacco was a key contributor to Fund performance for the reporting period. The company’s shares rose on news that it was seeking government approval to raise cigarette prices, which could boost operating profits. This was the first time since its 1985 initial public offering (IPO) that the company hiked prices when the tax laws had not changed. Shares of Banco Bradesco moved higher on increasing optimism about Brazilian President Dilma Rousseff’s impeachment and a regime change, which may potentially spur reforms to improve the ailing economy. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. Furthermore, Banco Bradesco’s operating results over the period were boosted by higher interest income and improved efficiency. While we believe that the company maintains good asset quality, bad-debt provisions have increased on the back of worsening loan delinquencies. Taiwan Semiconductor Manufacturing Co.’s fourth-quarter 2015 results reached the higher end of management’s forecast, supported by robust demand in the communications and computing sectors. The company expects revenue growth of 5% to 10% for 2016 and higher profits, driven by growing demand and foreign-exchange gains.*
Conversely, the holding in Brazilian miner Vale was a notable detractor from Fund performance for the period, with the ongoing low iron-ore price environment compounding difficulties. Furthermore, its share price fell following an accident at Samarco, its joint-venture operation with BHP Billiton. The position in Casino Guichard also weighed on Fund performance. Investor sentiment remained weak towards the French retailer due to its significant exposure to Latin America, particularly Brazil, which is undergoing a sharp economic contraction. We have exited both of these holdings. Additionally, Fund holding Standard Chartered continued to be weighed down by higher loan loss provisions, a slowing Chinese economy and global economic growth concerns. This was compounded by the uncertainty created by the Bank of Japan’s imposition of negative interest rates. Despite these uncertainties, the lender has continued to strengthen its capital position by reducing exposure to riskier assets and streamlining its balance sheet, supported by focused, competent and professional management, in our opinion.
During the reporting period, we initiated a position in Australian biotechnology company CSL, which holds a solid market position in its core plasma business; Indian bank Housing Development Finance Corporation, which we feel has efficient operations and a well-capitalized balance sheet; UK satellite telecommunications company Inmarsat, which benefits from high barriers to entry and a pool of loyal customers; MTR Corporation, which in our view has robust city-rail operations in Hong Kong and China, with a strong business model that also allows it to develop property; consumer products maker L’Oreal, which generates relatively stable returns and free cash-flows; restaurant, coffee shop and budget hotel group Whitbread, as we are impressed by its competitive positions and brands in its key UK markets; German pharmaceutical Bayer, which has healthy returns on investment and holds steady margins; Hong Kong exchange-listed luggage-maker Samsonite, as we feel that it has strong brands, a solid balance sheet and a management team with a good track record of execution; Kasikornbank, a leading Thai commercial lender; diversified Philippines property business Ayala Land, which has residential developments and recurring income from office and mall rentals, as well as from hotels and resorts; and Japan’s Keyence, a market leader that taps into growing demand for factory automation.
Conversely, we exited positions in Swedish telecom Ericsson, French natural gas and electricity supplier Engie, French energy management company Schneider Electric, and Zurich Insurance, to fund what we believed were better opportunities elsewhere. We also sold the Fund’s shares in financial services company Nordea, as we feel that its growth potential seems limited; Brazilian miner Vale due to our concerns about market imbalances between supply and demand; French retailer Casino, after it divested its Thai business, which we regarded as one of the attractive growth drivers of the company; and HSBC, given our worries about the continuing drag on the company’s performance from regulatory and compliance requirements.
We expect global equities to remain volatile in the near term. Despite recent relief rallies, there has been no extended market turnaround, as economic fundamentals have not changed substantially. Many unknowns remain – investors are wary of the effectiveness of central bank action, governments need to implement more proactive reforms, and there does not appear to be a sustained demand for
2016 Semi-Annual Report
54
* | Forecasts and estimates are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially. |
Aberdeen International Equity Fund (Unaudited) (concluded)
commodities. We think that all of these factors raise the specter of a protracted global slump. Many of the companies that the Fund holds are taking the opportunity to strengthen their balance sheets. Notwithstanding the unpredictable climate, we maintain our confidence in our investment process, picking stocks that we believe are well-managed market leaders with efficient operations. We take advantage of market turbulence to add to these high-quality holdings, which we feel can bolster the Fund’s performance.
Portfolio Management:
Aberdeen Global Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
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55
Aberdeen International Equity Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||
Class A | w/o SC | (1.84%) | (15.63%) | (1.28% | ) | 1.82% | ||||||||
w/SC2 | (7.46%) | (20.47%) | (2.44% | ) | 1.23% | |||||||||
Class C | w/o SC | (2.17%) | (16.22%) | (1.96% | ) | 1.13% | ||||||||
w/SC3 | (3.15%) | (17.05%) | (1.96% | ) | 1.13% | |||||||||
Class R4 | w/o SC | (2.01%) | (15.89%) | (1.53% | ) | 1.57% | ||||||||
Institutional Service Class4 | w/o SC | (1.69%) | (15.47%) | (1.08% | ) | 2.06% | ||||||||
Institutional Class4 | w/o SC | (1.70%) | (15.37%) | (0.97% | ) | 2.14% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns prior to June 23, 2008 incorporate the performance of a predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
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56
Aberdeen International Equity Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen International Equity Fund, the Morgan Stanley Capital International All Country World (MSCI ACWI) ex-US Index and the
Consumer Price Index (CPI) over a 10-year period ending April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI ACWI ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 23 Emerging Markets (EM) countries. With 1,855 constituents, the index covers approximately 85% of the global equity opportunity set outside the US. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 89.2% | |||
Preferred Stocks | 7.4% | |||
Repurchase Agreement | 3.9% | |||
Liabilities in excess of other assets | (0.5% | ) | ||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Consumer Staples | 18.3% | |||
Financials | 17.9% | |||
Industrials | 12.3% | |||
Health Care | 12.2% | |||
Information Technology | 11.2% | |||
Telecommunication Services | 9.3% | |||
Materials | 6.3% | |||
Energy | 6.2% | |||
Consumer Discretionary | 2.9% | |||
Other | 3.4% | |||
100.0% |
Top Holdings* | ||||
Nestle SA | 4.0% | |||
Roche Holding AG | 4.0% | |||
Samsung Electronics Co. Ltd., GDR, Preferred Shares | 3.9% | |||
Japan Tobacco, Inc. | 3.9% | |||
Novartis AG | 3.9% | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.8% | |||
British American Tobacco PLC | 3.6% | |||
Royal Dutch Shell PLC, B Shares | 3.1% | |||
AIA Group Ltd. | 3.0% | |||
Fomento Economico Mexicano SAB de CV, ADR | 2.5% | |||
Other | 64.3% | |||
100.0% |
Top Countries | ||||
United Kingdom | 23.1% | |||
Switzerland | 11.9% | |||
Japan | 10.6% | |||
Hong Kong | 7.6% | |||
Germany | 6.7% | |||
Singapore | 5.7% | |||
Canada | 4.6% | |||
Republic of South Korea | 3.9% | |||
United States | 3.9% | |||
Taiwan | 3.8% | |||
Other | 18.2% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Semi-Annual Report 2016
57
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen International Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (89.2%) | ||||||||
AUSTRALIA (1.0%) | ||||||||
Health Care (1.0%) | ||||||||
CSL Ltd. (a) | 60,900 | $ | 4,853,015 | |||||
CANADA (4.6%) | ||||||||
Industrials (1.8%) | ||||||||
Canadian National Railway Co. | 149,000 | 9,174,894 | ||||||
Materials (1.4%) | ||||||||
Potash Corp. of Saskatchewan, Inc. | 391,000 | 6,918,148 | ||||||
Telecommunication Services (1.4%) | ||||||||
TELUS Corp. | 214,400 | 6,797,507 | ||||||
22,890,549 | ||||||||
FRANCE (1.5%) | ||||||||
Consumer Staples (1.5%) | ||||||||
L’Oreal SA (a) | 40,300 | 7,320,322 | ||||||
GERMANY (4.8%) | ||||||||
Health Care (3.3%) | ||||||||
Bayer AG (a) | 59,800 | 6,910,899 | ||||||
Fresenius Medical Care AG & Co. KGaA (a) | 104,200 | 9,069,263 | ||||||
15,980,162 | ||||||||
Materials (1.5%) | ||||||||
Linde AG (a) | 49,300 | 7,542,994 | ||||||
23,523,156 | ||||||||
HONG KONG (7.6%) | ||||||||
Consumer Discretionary (0.9%) | ||||||||
Samsonite International SA (a) | 1,362,600 | 4,373,446 | ||||||
Financials (4.0%) | ||||||||
AIA Group Ltd. (a) | 2,484,500 | 14,836,901 | ||||||
Swire Pacific Ltd., Class A (a) | 432,500 | 4,689,244 | ||||||
19,526,145 | ||||||||
Industrials (2.7%) | ||||||||
Jardine Matheson Holdings Ltd. (a) | 160,000 | 8,824,340 | ||||||
MTR Corp. Ltd. (a) | 938,000 | 4,643,432 | ||||||
13,467,772 | ||||||||
37,367,363 | ||||||||
INDIA (2.3%) | ||||||||
Consumer Staples (0.9%) | ||||||||
ITC Ltd. (a) | 928,600 | 4,555,234 | ||||||
Financials (1.4%) | ||||||||
Housing Development Finance Corp. Ltd. (a) | 424,500 | 6,966,274 | ||||||
11,521,508 | ||||||||
ISRAEL (2.5%) | ||||||||
Information Technology (2.5%) | ||||||||
Check Point Software Technologies Ltd. (b) | 146,700 | 12,157,029 | ||||||
ITALY (1.6%) | ||||||||
Energy (1.6%) | ||||||||
Tenaris SA, ADR | 291,400 | 7,888,198 | ||||||
JAPAN (10.6%) | ||||||||
Consumer Staples (3.9%) | ||||||||
Japan Tobacco, Inc. (a) | 473,500 | 19,346,224 | ||||||
Financials (2.0%) | ||||||||
Daito Trust Construction Co. Ltd. (a) | 68,600 | 9,702,250 | ||||||
Industrials (1.3%) | ||||||||
FANUC Corp. (a) | 42,600 | 6,292,954 | ||||||
Information Technology (1.0%) | ||||||||
Keyence Corp. (a) | 8,300 | 4,974,961 | ||||||
Materials (2.4%) | ||||||||
Shin-Etsu Chemical Co. Ltd. (a) | 214,400 | 12,008,282 | ||||||
52,324,671 | ||||||||
MEXICO (2.5%) | ||||||||
Consumer Staples (2.5%) | ||||||||
Fomento Economico Mexicano SAB de CV, ADR | 133,000 | 12,396,930 | ||||||
PHILIPPINES (1.0%) | ||||||||
Financials (1.0%) | ||||||||
Ayala Land, Inc. (a) | 6,676,500 | 4,926,078 | ||||||
SINGAPORE (5.7%) | ||||||||
Financials (3.3%) | ||||||||
City Developments Ltd. (a) | 1,118,600 | 6,918,952 | ||||||
Oversea-Chinese Banking Corp. Ltd. (a) | 1,417,900 | 9,210,809 | ||||||
16,129,761 | ||||||||
Telecommunication Services (2.4%) | ||||||||
Singapore Telecommunications Ltd. (a) | 4,137,000 | 11,833,429 | ||||||
27,963,190 | ||||||||
SOUTH AFRICA (1.7%) | ||||||||
Telecommunication Services (1.7%) | ||||||||
MTN Group Ltd. (a) | 803,100 | 8,407,251 | ||||||
SWEDEN (2.0%) | ||||||||
Industrials (2.0%) | ||||||||
Atlas Copco AB, A Shares (a) | 373,300 | 9,671,176 | ||||||
SWITZERLAND (11.9%) | ||||||||
Consumer Staples (4.0%) | ||||||||
Nestle SA (a) | 266,400 | 19,884,003 | ||||||
Health Care (7.9%) | ||||||||
Novartis AG (a) | 251,600 | 19,147,315 | ||||||
Roche Holding AG (a) | 77,500 | 19,608,211 | ||||||
38,755,526 | ||||||||
58,639,529 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
58
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen International Equity Fund
Shares or Principal Amount | Value | |||||||
TAIWAN (3.8%) | ||||||||
Information Technology (3.8%) | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 4,064,000 | $ | 18,671,511 | |||||
THAILAND (1.0%) | ||||||||
Financials (1.0%) | ||||||||
Kasikornbank PCL (a) | 1,008,300 | 4,810,819 | ||||||
UNITED KINGDOM (23.1%) | ||||||||
Consumer Discretionary (2.0%) | ||||||||
Whitbread PLC (a) | 177,200 | 10,044,033 | ||||||
Consumer Staples (3.6%) | ||||||||
British American Tobacco PLC (a) | 287,000 | 17,498,991 | ||||||
Energy (4.6%) | ||||||||
John Wood Group PLC (a) | 800,200 | 7,320,288 | ||||||
Royal Dutch Shell PLC, B Shares (a) | 584,900 | 15,356,474 | ||||||
22,676,762 | ||||||||
Financials (3.6%) | ||||||||
Prudential PLC (a) | 505,500 | 9,978,332 | ||||||
Standard Chartered PLC (a) | 945,957 | 7,645,799 | ||||||
17,624,131 | ||||||||
Industrials (4.5%) | ||||||||
Experian PLC (a) | 516,200 | 9,459,246 | ||||||
Rolls-Royce Holdings PLC, C Shares (b) | 52,703,300 | 77,007 | ||||||
Rolls-Royce Holdings PLC (a)(b) | 742,300 | 7,282,145 | ||||||
Weir Group PLC (The) (a) | 317,000 | 5,568,306 | ||||||
22,386,704 | ||||||||
Materials (1.0%) | ||||||||
BHP Billiton PLC (a) | 366,800 | 5,012,138 | ||||||
Telecommunication Services (3.8%) | ||||||||
Inmarsat PLC (a) | 489,400 | 6,658,806 | ||||||
Vodafone Group PLC (a) | 3,731,700 | 12,022,932 | ||||||
18,681,738 | ||||||||
113,924,497 | ||||||||
Total Common Stocks | 439,256,792 | |||||||
PREFERRED STOCKS (7.4%) | ||||||||
BRAZIL (1.6%) | ||||||||
Financials (1.6%) | ||||||||
Banco Bradesco SA, ADR, Preferred Shares | 1,037,740 | 7,751,918 | ||||||
GERMANY (1.9%) | ||||||||
Consumer Staples (1.9%) | ||||||||
Henkel AG & Co. KGaA, Preferred Shares (a) | 82,900 | 9,468,744 | ||||||
REPUBLIC OF SOUTH KOREA (3.9%) | ||||||||
Information Technology (3.9%) | ||||||||
Samsung Electronics Co. Ltd., GDR, Preferred Shares (c) | 42,900 | 19,433,700 | ||||||
Total Preferred Stocks | 36,654,362 | |||||||
REPURCHASE AGREEMENT (3.9%) | ||||||||
UNITED STATES (3.9%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $19,312,048, collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $19,699,113 | $ | 19,312,000 | 19,312,000 | |||||
Total Repurchase Agreement | 19,312,000 | |||||||
Total Investments | 495,223,154 | |||||||
Liabilities in excess of other assets—(0.5)% | (2,498,029 | ) | ||||||
Net Assets—100.0% |
| $ | 492,725,125 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | Denotes a security issued under Regulation S or Rule 144A. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
59
Aberdeen International Small Cap Fund (Unaudited)
As of February 29, 2016, the Fund’s investment strategy changed and its name changed from Aberdeen Global Small Cap Fund to Aberdeen International Small Cap Fund. The Fund also changed it benchmark at that time from the MSCI All Country (AC) World Small Cap Index to the MSCI AC World ex USA Small Cap Index. The Fund’s investment adviser believes that the MSCI AC World ex USA Small Cap Index is a more meaningful comparison index given the Fund’s investment strategy. Performance information for periods prior to February 29, 2016 does not reflect the current investment strategy.
The Aberdeen International Small Cap Fund (Institutional Class shares net of fees) returned 3.16% for the six-month period ended April 30, 2016, versus the 3.03% return of its benchmark, the MSCI All Country (AC) World ex USA Small Cap Index, during the same period. For broader comparison, the average return of the Fund’s peer category of International Small/Mid-Cap Growth Funds (comprising 61 funds), as measured by Lipper, Inc., was 0.20% for the period.
International small-cap equities rose during the six-month period ended April 30, 2016, outperforming their large-cap counterparts, as measured by the MSCI AC World ex USA Index.
Markets initially faced intense volatility, brought on partly by uncertainty over the timing of monetary policy normalization in the U.S. The Federal Reserve (Fed) finally raised its benchmark interest rate by 25 basis points (0.25%) in December 2015, amid a more upbeat U.S. employment outlook. Markets were also spooked by China’s monetary policy gaffes, yuan volatility and a stuttering economy, which triggered a sell-off in A-shares. This coincided with a low point in the ongoing rout in commodity prices that saw oil tumble to under US$30 a barrel in early February 2016. Investor sentiment picked up dramatically soon thereafter. Central banks in Japan and parts of Europe unexpectedly imposed negative interest rates in a bid to combat low inflation and boost consumer spending, while the European Central Bank introduced a bolder-than-expected package of fresh stimulus. The Fed lowered expectations for the number of rate hikes for the remainder of the 2016 calendar year amid growing caution over the fragile global recovery and deflationary pressures. The change in tone resulted in U.S. dollar weakness, which provided relief to commodities and commodity-related emerging markets such as Brazil.
The Fund’s Brazilian holdings were the most notable contributors to performance for the reporting period, as the market surged on renewed momentum to impeach President Dilma Rousseff, which spurred hopes of a change in government. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. Additionally, several of the Fund’s holdings in that market, including mall operator Iguatemi and retailer Arezzo, also benefited from healthy operating results over the period in the face of challenging economic conditions. Tesco Lotus Retail Growth was another key contributor to Fund performance, as the Thai property investment firm benefited from increased profits from healthy rental income.
Conversely, the position in U.S.-based property group Jones Lang LaSalle was a significant detractor from Fund performance for the reporting period amid investors’ concerns about a cyclical slowdown in the real estate industry. Thermoplastic manufacturer Victrex was weighed down by a decline in its revenue for the first half of its 2016 fiscal year. However, management expressed optimism for improvement in the second half of the year and has retained its current expectations for the full fiscal year. The Fund’s holding in Castrol India also hindered performance as the stock underperformed the overall market, given the still-challenging industrial environment.
During the reporting period, we initiated a position in Auckland International Airport, as the company recently has seen strong passenger growth and the diversification of its revenue base into aeronautical activities, retail concessions, car-parking services and property; Israeli flavors and fragrances company Frutarom, which has access to fast-growing under-penetrated segments of the market; luggage business Samsonite, which has brand strength, a robust balance sheet and well-executed management strategies, in our opinion; British software services business Aveva Group, as we believed that it had an attractive valuation following a period of significant share price weakness; Swiss financial software provider Temenos, which we feel is well-placed to benefit from structural growth drivers as technology penetrates the finance industry; UK funeral services provider Dignity, which operates in an industry with high barriers to entry, and enjoys steady growth and improving cash-flow generation; Fuller Smith & Turner, as we think that it is a well-managed brewer and pub business with a strong brand and solid asset backing; Jyothy Laboratories, a manufacturer of household products in India that in our view has attractive growth drivers; and Parque Arauco, which we believe is a well-managed owner of good quality retail property in South America.
In contrast, we exited the Fund’s positions in technology equipment manufacturer Oxford Instruments to fund what we believe are better opportunities elsewhere; consumer goods packaging products maker Silgan Holdings, as consolidation opportunities within the industry diminish and better opportunities emerge elsewhere, in our opinion; UK-based consumer products company PZ Cussons, as we think that its key market, Nigeria, poses a challenging business environment; and Israeli discount retailer Rami Levi Chain Stores on our concerns that its aggressive expansion plans have resulted in a loss of focus on earnings. We also exited animal health-focused pharmaceutical firm Societe Virbac due to our worries about falling cash flow levels and its deteriorating balance sheet.
We expect global equities to remain volatile in the near term. Despite recent relief rallies, there has been no extended market turnaround, as economic fundamentals have not changed substantially. Many unknowns remain, in our view; investors are wary of the effectiveness of central bank action, governments need to implement more proactive reforms, and there does not appear to be a sustained demand for commodities. We think that all of these factors raise the specter of a protracted global slump. Many of the companies that the Fund holds are taking the opportunity to strengthen their balance sheets. Notwithstanding the unpredictable climate, we maintain our
2016 Semi-Annual Report
60
Aberdeen International Small Cap Fund (Unaudited) (concluded)
confidence in our investment process, picking stocks that we believe are well-managed market leaders with efficient operations. We seek to take advantage of market turbulence to add to these high-quality holdings, which we feel can bolster the Fund’s performance.
Portfolio Management:
Aberdeen Global Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Smaller company stocks are usually less stable in price and less liquid than those of larger, more established companies, and therefore carry greater risk to investors.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
61
Aberdeen International Small Cap Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A2 | w/o SC | 3.01% | (2.65% | ) | 5.00% | 2.69% | ||||||||||||
w/SC3 | (2.92% | ) | (8.26% | ) | 3.77% | 2.08% | ||||||||||||
Class C | w/o SC | 2.60% | (3.37% | ) | 4.27% | 6.32% | ||||||||||||
w/SC4 | 1.68% | (4.22% | ) | 4.27% | 6.32% | |||||||||||||
Class R5,6 | w/o SC | 2.83% | (2.96% | ) | 4.71% | 2.43% | ||||||||||||
Institutional Service Class5,7 | w/o SC | 3.06% | (2.55% | ) | 5.12% | 2.79% | ||||||||||||
Institutional Class5,8 | w/o SC | 3.16% | (2.34% | ) | 5.33% | 2.87% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | The Fund changed its investment strategy effective February 29, 2016. Performance information for periods prior to February 29, 2016 does not reflect the current investment strategy. Returns prior to July 20, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). Prior to the change of investment strategy of the Fund effective February 29, 2016, the Fund and the Predecessor Fund had substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | Class A returns for periods prior to July 20, 2009, are based on the performance of Common Class shares of the Predecessor Fund, which were exchanged for Class A shares of the Fund in the reorganization. Class A and Class B shares of the Global Predecessor Fund were also exchanged for Class A shares of the Fund in the reorganization. |
3 | A 5.75% front-end sales charge was deducted. |
4 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
5 | Not subject to any sales charges. |
6 | Returns for Class R shares for periods prior to July 20, 2009 are based on the performance of Adviser Class shares of the Predecessor Fund, which were exchanged for Class R shares of the Fund in the reorganization. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what Class R shares would have produced because both classes invest in the same portfolio of securities. Returns have been adjusted to eliminate sales charges that do not apply to Class R shares, but have not been adjusted to reflect its lower expenses. |
7 | Returns before the first offering of Institutional Service Class shares (September 16, 2009) are based on the previous performance of the Fund’s Class A shares. This performance is substantially similar to what Institutional Service Class shares would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses between the two classes. |
8 | Returns before the first offering of Institutional Class shares (July 20, 2009) are based on the previous performance of Common Class shares of the Predecessor Fund. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what Institutional Class shares would have produced because both classes invest in the same portfolio of securities. Returns have been adjusted to eliminate sales charges that do not apply to Institutional Class shares, but have not been adjusted to reflect its lower expenses. |
Semi-Annual Report 2016
62
Aberdeen International Small Cap Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen International Small Cap Fund, MSCI All Country World ex-USA Small Cap Index, MSCI World Small Cap Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Effective February 29, 2016, the MSCI All Country World ex-USA Small Cap Index replaced the MSCI World Small Cap Index as the Fund’s benchmark index. The Adviser believes that the MSCI All Country World ex-USA Small Cap Index is a more meaningful comparison given the Fund’s investment strategy. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI ACWI ex USA Small Cap Index captures small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 23 Emerging Markets (EM) countries. With 4,228 constituents, the index covers approximately 14% of the global equity opportunity set outside the US. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates
The MSCI World Small Cap Index captures small cap representation across 23 Developed Markets (DM) countries. With 4,281 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary
Asset Allocation | ||||
Common Stocks | 97.8% | |||
Repurchase Agreement | 1.8% | |||
Other assets in excess of liabilities | 0.4% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Consumer Staples | 19.9% | |||
Industrials | 17.9% | |||
Consumer Discretionary | 15.9% | |||
Health Care | 13.9% | |||
Materials | 12.3% | |||
Financials | 10.6% | |||
Information Technology | 3.0% | |||
Energy | 1.8% | |||
Utilities | 1.5% | |||
Telecommunication Services | 1.0% | |||
Other | 2.2% | |||
100.0% |
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63
Aberdeen International Small Cap Fund (Unaudited) (concluded)
Top Holdings* | ||||
Embotelladora Andina SA, Class A | 4.0% | |||
Barry Callebaut AG | 3.1% | |||
Kaba Holding AG, Class B | 3.0% | |||
OdontoPrev SA | 2.9% | |||
Clicks Group Ltd. | 2.8% | |||
Raffles Medical Group Ltd. | 2.7% | |||
Castrol (India) Ltd. | 2.5% | |||
Weir Group PLC (The) | 2.4% | |||
Iguatemi Empresa de Shopping Centers SA | 2.3% | |||
Symrise AG | 2.3% | |||
Other | 72.0% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Top Countries | ||||
United Kingdom | 24.9% | |||
Japan | 9.2% | |||
Brazil | 8.6% | |||
Germany | 7.8% | |||
Switzerland | 7.6% | |||
Chile | 7.1% | |||
India | 5.4% | |||
Hong Kong | 4.9% | |||
Thailand | 3.7% | |||
South Africa | 2.8% | |||
Other | 18.0% | |||
100.0% |
Semi-Annual Report 2016
64
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen International Small Cap Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (97.8%) | ||||||||
AUSTRALIA (2.1%) | ||||||||
Consumer Discretionary (2.1%) | ||||||||
ARB Corp. Ltd. (a) | 135,700 | $ | 1,656,045 | |||||
BRAZIL (8.6%) | ||||||||
Consumer Discretionary (2.3%) | ||||||||
Arezzo Industria e Comercio SA | 250,100 | 1,763,444 | ||||||
Financials (2.3%) | ||||||||
Iguatemi Empresa de Shopping Centers SA | 235,900 | 1,831,367 | ||||||
Health Care (2.9%) | ||||||||
OdontoPrev SA | 740,000 | 2,250,607 | ||||||
Industrials (1.1%) | ||||||||
Wilson Sons Ltd., BDR | 92,400 | 827,483 | ||||||
6,672,901 | ||||||||
CANADA (2.0%) | ||||||||
Financials (2.0%) | ||||||||
Canadian Western Bank | 71,800 | 1,583,983 | ||||||
CHILE (7.1%) | ||||||||
Consumer Staples (5.9%) | ||||||||
Embotelladora Andina SA, Class A | 1,013,400 | 3,144,466 | ||||||
Vina Concha y Toro SA | 866,600 | 1,452,433 | ||||||
4,596,899 | ||||||||
Financials (1.2%) | ||||||||
Parque Arauco SA | 485,726 | 944,728 | ||||||
5,541,627 | ||||||||
GERMANY (7.8%) | ||||||||
Consumer Discretionary (1.5%) | ||||||||
Fielmann AG (a) | 15,600 | 1,152,711 | ||||||
Consumer Staples (1.7%) | ||||||||
KWS Saat SE (a) | 3,700 | 1,283,958 | ||||||
Materials (4.6%) | ||||||||
FUCHS PETROLUB SE (a) | 48,300 | 1,782,454 | ||||||
Symrise AG (a) | 27,500 | 1,825,206 | ||||||
3,607,660 | ||||||||
6,044,329 | ||||||||
HONG KONG (4.9%) | ||||||||
Consumer Discretionary (2.1%) | ||||||||
Samsonite International SA (a) | 503,100 | 1,614,766 | ||||||
Industrials (1.8%) | ||||||||
Kerry Logistics Network Ltd. (a) | 975,000 | 1,375,075 | ||||||
Telecommunication Services (1.0%) | ||||||||
Asia Satellite Telecommunications Holdings Ltd. | 551,500 | 779,234 | ||||||
3,769,075 | ||||||||
INDIA (5.4%) | ||||||||
Consumer Staples (1.0%) | ||||||||
Jyothy Laboratories Ltd. (a) | 164,500 | 750,531 | ||||||
Health Care (1.9%) | ||||||||
Sanofi India Ltd. | 22,200 | 1,476,486 | ||||||
Materials (2.5%) | ||||||||
Castrol (India) Ltd. (a) | 333,500 | 1,983,839 | ||||||
4,210,856 | ||||||||
INDONESIA (2.0%) | ||||||||
Consumer Discretionary (2.0%) | ||||||||
Ace Hardware Indonesia Tbk PT (a) | 21,987,800 | 1,538,468 | ||||||
ISRAEL (1.4%) | ||||||||
Materials (1.4%) | ||||||||
Frutarom Industries Ltd. (a) | 21,600 | 1,123,177 | ||||||
JAPAN (9.2%) | ||||||||
Consumer Discretionary (1.7%) | ||||||||
Resorttrust, Inc. (a) | 63,200 | 1,306,689 | ||||||
Consumer Staples (1.8%) | ||||||||
Calbee, Inc. (a) | 36,000 | 1,401,523 | ||||||
Health Care (4.0%) | ||||||||
Asahi Intecc Co. Ltd. (a) | 32,900 | 1,582,766 | ||||||
Sysmex Corp. (a) | 23,600 | 1,475,927 | ||||||
3,058,693 | ||||||||
Industrials (1.7%) | ||||||||
Nabtesco Corp. (a) | 59,000 | 1,330,993 | ||||||
7,097,898 | ||||||||
MALAYSIA (1.7%) | ||||||||
Consumer Staples (1.7%) | ||||||||
Carlsberg Brewery Malaysia Bhd | 371,700 | 1,284,513 | ||||||
MEXICO (1.0%) | ||||||||
Industrials (1.0%) | ||||||||
Grupo Aeroportuario del Sureste SAB de CV, Class B | 52,700 | 811,606 | ||||||
NEW ZEALAND (1.0%) | ||||||||
Industrials (1.0%) | ||||||||
Auckland International Airport Ltd. (a) | 187,000 | 802,177 | ||||||
SINGAPORE (2.7%) | ||||||||
Health Care (2.7%) | ||||||||
Raffles Medical Group Ltd. (a) | 591,984 | 2,066,277 | ||||||
SOUTH AFRICA (2.8%) | ||||||||
Consumer Staples (2.8%) | ||||||||
Clicks Group Ltd. | 297,900 | 2,175,772 | ||||||
SPAIN (1.9%) | ||||||||
Consumer Staples (1.9%) | ||||||||
Viscofan SA (a) | 26,100 | 1,466,248 | ||||||
SWITZERLAND (7.6%) | ||||||||
Consumer Staples (3.1%) | ||||||||
Barry Callebaut AG (a)(b) | 2,050 | 2,411,680 | ||||||
Industrials (3.0%) | ||||||||
Kaba Holding AG, Class B (a) | 3,600 | 2,337,761 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
65
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen International Small Cap Fund
Shares or Principal Amount | Value | |||||||
Information Technology (1.5%) | ||||||||
Temenos Group AG (a)(b) | 21,300 | $ | 1,105,344 | |||||
5,854,785 | ||||||||
THAILAND (3.7%) | ||||||||
Financials (2.2%) | ||||||||
Tesco Lotus Retail Growth Freehold & Leasehold Property Fund (c) | 3,514,600 | 1,700,450 | ||||||
Utilities (1.5%) | ||||||||
Electricity Generating PCL, Foreign Shares (a) | 225,700 | 1,144,069 | ||||||
2,844,519 | ||||||||
UNITED KINGDOM (24.9%) | ||||||||
Consumer Discretionary (4.2%) | ||||||||
Dignity PLC (a) | 20,800 | 743,110 | ||||||
Fuller Smith & Turner PLC, Class A (a) | 53,000 | 803,195 | ||||||
Millennium & Copthorne Hotels PLC | 248,100 | 1,669,728 | ||||||
3,216,033 | ||||||||
Energy (1.8%) | ||||||||
John Wood Group PLC (a) | 154,700 | 1,415,207 | ||||||
Financials (2.9%) | ||||||||
Close Brothers Group PLC (a) | 63,900 | 1,133,249 | ||||||
Rathbone Brothers PLC | 38,500 | 1,143,650 | ||||||
2,276,899 | ||||||||
Health Care (2.4%) | ||||||||
Dechra Pharmaceuticals PLC | 112,600 | 1,819,653 | ||||||
Industrials (8.3%) | ||||||||
Rotork PLC (a) | 572,200 | 1,565,386 | ||||||
Spirax-Sarco Engineering PLC (a) | 29,700 | 1,483,906 | ||||||
Ultra Electronics Holdings PLC (a) | 57,400 | 1,482,259 | ||||||
Weir Group PLC (The) (a) | 106,700 | 1,874,253 | ||||||
6,405,804 | ||||||||
Information Technology (1.5%) | ||||||||
AVEVA Group PLC (a) | 50,700 | 1,193,964 | ||||||
Materials (3.8%) | ||||||||
Croda International PLC (a) | 35,900 | 1,581,486 | ||||||
Victrex PLC (a) | 67,200 | 1,377,836 | ||||||
2,959,322 | ||||||||
19,286,882 | ||||||||
Total Common Stocks | 75,831,138 | |||||||
REPURCHASE AGREEMENT (1.8%) | ||||||||
UNITED STATES (1.8%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $1,375,003, collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $1,404,119 | $ | 1,375,000 | 1,375,000 | |||||
Total Repurchase Agreement | 1,375,000 | |||||||
Total Investments | 77,206,138 | |||||||
Other assets in excess of liabilities—0.4% | 290,143 | |||||||
Net Assets—100.0% |
| $ | 77,496,281 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | As of April 30, 2016, security is a closed-end fund incorporated in Thailand. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
BDR | Brazilian Depositary Receipt |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
66
Aberdeen Japanese Equities Fund (Unaudited)
The Aberdeen Japanese Equities Fund (Institutional Class shares net of fees) returned -0.21% from the date of its inception on November 30, 2015, to the end of the reporting period on April 30, 2016, versus the -1.09% return of its benchmark, the Tokyo Stock Price Index (TOPIX), during the same period. For broader comparison, the average return of the Fund’s peer category of Japanese Funds (comprising 35 funds), as measured by Lipper, Inc., was -4.40% for the period.
Japanese equities fell modestly during the reporting period of November 30, 2015 to April 30, 2016, hampered by the sell-off in Chinese equities and the continued decline in the Brent crude oil price, which fell below US$30 a barrel in January 2016. Investor sentiment was dampened further by worries over the health of the global economy and a spike in the yen after the U.S. Federal Reserve (Fed) switched gears and announced a more measured approach to interest-rate hikes after embarking on policy normalization in December. Mitigating the declines were the European Central Bank’s (ECB’s) bolder-than-expected package of fresh stimulus that included cutting interest rates further into negative territory, as well as the Bank of Japan’s move to impose negative interest rates while keeping asset purchases unchanged. Towards the end of the period, the global equity markets recovered somewhat on the back of firming energy prices, the ECB’s move to maintain ultra-loose stimulus, and improving economic data from China.
In Japan, March 2016 economic data were mostly positive: rising industrial production exceeded expectations; the unemployment rate improved marginally; and the drop in retail sales was generally smaller than anticipated. Conversely, consumer prices edged lower, while leading economic indicators deteriorated, with the April Purchasing Managers Index (PMI) of manufacturing activity signaling its steepest contraction in more than three years.
Fund performance for the reporting period was bolstered by the holding in Daito Trust Construction, as its shares rose in response to recent data that revealed greater-than-expected orders in February 2016 amid still-robust housing occupancy levels. The Fund’s position in Japan Tobacco also contributed to performance. Shares of the company moved higher after it unexpectedly sought regulatory approval to raise cigarette prices beginning in April 2016. Its application was subsequently approved in February. Finally, shares of Keyence, a market-leader that taps into growing demand for factory automation, moved higher after the company reported generally better-than-expected full-year 2015 results, with healthy sales across all geographical regions.
In contrast, the lack of a position in Nippon Telegraph and Telephone Corp. (NTT) detracted from the Fund’s relative performance, as its shares performed well due to positive earnings results over the reporting period. However, the Fund has exposure to the telecom sector through the holding in KDDI. The position in Concordia Financial Group also hindered Fund performance, as shares of the company fell amid investors’ concerns that its profitability may be dampened by the imposition of negative interest rates in the country. Finally, the holding in Fanuc detracted from Fund performance for the reporting period after the robotics manufacturer reported weak quarterly results that were in line with expectations; however, its 2016 fiscal-year forecast generally did not meet the market’s expectations.
We made no major changes to the Fund during the reporting period.
In our view, investor risk appetite has improved, aided by a more stable Chinese economy and a weaker U.S. dollar attributable to the Fed’s relatively dovish monetary policy stance. However, we think that the macroeconomic backdrop remains challenging. In the Japanese market, we believe that the yen’s appreciation and a more downbeat outlook among large Japanese manufacturers are likely to constrain domestic economic growth. At the global level, it appears that accommodative central bank monetary policy may have reached its limits. Additionally, we think that the lack of commitment to fiscal expansion, especially in the coordinated manner suggested by the International Monetary Fund, may prolong the malaise. Nonetheless, we believe that companies with good balance sheets, resilient businesses and experienced management, such as the Fund’s holdings, in our opinion, should continue to thrive in spite of these challenges.
Portfolio Management:
Aberdeen Asia-Pacific Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Concentrating investments in the Japan region subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Equity stocks of small- and mid-cap companies carry greater risk, and more volatility than equity stocks of larger, more established companies.
Semi-Annual Report 2016
67
Aberdeen Japanese Equities Fund (Unaudited) (concluded)
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
68
Aberdeen Japanese Equities Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Inception†1 | |||||
Class A | w/o SC | 0.33% | ||||
w/SC2 | (6.06% | ) | ||||
Class C | w/o SC | (0.70% | ) | |||
w/SC3 | (1.69% | ) | ||||
Class R4 | w/o SC | (0.45% | ) | |||
Institutional Service Class4 | w/o SC | (0.21% | ) | |||
Institutional Class4 | w/o SC | (0.21% | ) |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on November 30, 2015. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2016 Semi-Annual Report
69
Aberdeen Japanese Equities Fund (Unaudited)
Performance of a $1,000,000 Investment* (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Insitutional shares of the Aberdeen Japanese Equities Fund, the Tokyo Stock Price Index (TOPIX) and the Consumer Price Index (CPI) over inception period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Tokyo Stock Price Index (TOPIX) is a free-float adjusted market capitalization-weighted index that is calculated based on all the domestic common stocks listed on the Tokyo Stock Exchange First Section. TOPIX shows the measure of current market capitalization assuming that market capitalization as of the base date (January 4, 1968) is 100 points. Indexes are unmanaged and have been provided for comparison purposes only.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment returns and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 92.7% | |||
Other assets in excess of liabilities | 7.3% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Industrials | 20.0% | |||
Consumer Discretionary | 14.2% | |||
Financials | 13.0% | |||
Consumer Staples | 12.8% | |||
Information Technology | 10.2% | |||
Materials | 9.0% | |||
Health Care | 8.9% | |||
Telecommunication Services | 4.6% | |||
Other | 7.3% | |||
100.0% |
Top Holdings | ||||
Keyence Corp. | 6.0% | |||
Shin-Etsu Chemical Co. Ltd. | 5.6% | |||
KDDI Corp. | 4.6% | |||
Japan Tobacco, Inc. | 4.5% | |||
Seven & i Holdings Co. Ltd. | 4.1% | |||
Nabtesco Corp. | 4.1% | |||
Amada Holdings Co. Ltd. | 3.7% | |||
Toyota Motor Corp. | 3.6% | |||
East Japan Railway Co. | 3.5% | |||
Chugai Pharmaceutical Co. Ltd. | 3.4% | |||
Other | 56.9% | |||
100.0% |
Top Countries | ||||
Japan | 92.7% | |||
Other | 7.3% | |||
100.0% |
2016 Semi-Annual Report
70
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Japanese Equities Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (92.7%) (a) | ||||||||
JAPAN (92.7%) | ||||||||
Consumer Discretionary (14.2%) | ||||||||
Asics Corp. | 900 | $ | 17,825 | |||||
Denso Corp. | 400 | 15,204 | ||||||
Honda Motor Co. Ltd. | 800 | 21,589 | ||||||
Rinnai Corp. | 200 | 17,651 | ||||||
Sekisui House Ltd. | 600 | 10,418 | ||||||
Shimano, Inc. | 100 | 14,347 | ||||||
Toyota Motor Corp. | 700 | 35,483 | ||||||
USS Co. Ltd. | 600 | 9,491 | ||||||
142,008 | ||||||||
Consumer Staples (12.8%) | ||||||||
Japan Tobacco, Inc. | 1,100 | 44,944 | ||||||
Pigeon Corp. | 900 | 23,639 | ||||||
Seven & i Holdings Co. Ltd. | 1,000 | 40,802 | ||||||
Unicharm Corp. | 900 | 18,604 | ||||||
127,989 | ||||||||
Financials (13.0%) | ||||||||
AEON Financial Service Co. Ltd. | 1,000 | 22,319 | ||||||
Concordia Financial Group Ltd. (b)(c) | 4,000 | 19,263 | ||||||
Daito Trust Construction Co. Ltd. | 200 | 28,286 | ||||||
Japan Exchange Group, Inc. | 800 | 11,915 | ||||||
Mitsubishi Estate Co. Ltd. | 1,000 | 19,003 | ||||||
Suruga Bank Ltd. | 1,500 | 29,166 | ||||||
129,952 | ||||||||
Health Care (8.9%) | ||||||||
Astellas Pharma, Inc. | 2,200 | 29,661 | ||||||
Chugai Pharmaceutical Co. Ltd. | 1,000 | 33,701 | ||||||
Sysmex Corp. | 400 | 25,016 | ||||||
88,378 | ||||||||
Industrials (20.0%) | ||||||||
Amada Holdings Co. Ltd. | 3,700 | 37,172 | ||||||
Daikin Industries Ltd. | 400 | 31,752 | ||||||
East Japan Railway Co. | 400 | 35,190 | ||||||
FANUC Corp. | 200 | 29,544 | ||||||
Makita Corp. | 400 | 25,233 | ||||||
Nabtesco Corp. | 1,800 | 40,607 | ||||||
199,498 | ||||||||
Information Technology (10.2%) | ||||||||
Canon, Inc. | 700 | 19,574 | ||||||
Keyence Corp. | 100 | 59,939 | ||||||
Yahoo Japan Corp. | 4,900 | 21,920 | ||||||
101,433 | ||||||||
Materials (9.0%) | ||||||||
Kansai Paint Co. Ltd. | 1,900 | 33,230 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,000 | 56,009 | ||||||
89,239 | ||||||||
Telecommunication Services (4.6%) | ||||||||
KDDI Corp. | 1,600 | 46,089 | ||||||
924,586 | ||||||||
Total Common Stocks | 924,586 | |||||||
Total Investments | 924,586 | |||||||
Other assets in excess of liabilities—7.3% | 72,576 | |||||||
Net Assets—100.0% |
| $ | 997,162 |
(a) | All securities are fair valued. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Trustees. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | Security is not fair valued. See Note 2(a) of the accompanying Notes to Financial Statements. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
71
Aberdeen Latin American Equity Fund (Unaudited)
The Aberdeen Latin American Equity Fund (Institutional Class shares at net asset value net of fees) returned 18.21% for the six-month period ended April 30, 2016, versus the 15.99% return of its benchmark, the MSCI Emerging Markets Latin America 10/40 Index, during the same period. For broader comparison, the average return of the Fund’s peer category of Latin American Funds (comprising 29 funds), as measured by Lipper, Inc., was 13.94% for the period.
Latin American equities rose during the six-month period ended April 30, 2016, outperforming the broader emerging-markets asset class, as measured by the MSCI Emerging Markets Index, amid a solid rally beginning in early 2016. Renewed weakness in commodity and energy prices initially weighed on investor sentiment, and the U.S. Federal Reserve’s interest-rate hike in December 2015 triggered some outflows from the Latin American equity markets. Brazil sank deeper into a recession, as inflation rose to a 12-year high and unemployment reached 7.6%. Finance Minister Joaquim Levy resigned in December 2015 after disagreements with both the National Congress and the Brazilian government over his policies. However, in early 2016, the Brazilian stock market gained momentum to become the strongest performer within the Latin American markets for the reporting period. Investors were buoyed by increasing optimism that President Dilma Rousseff’s impeachment would result in a change of government, which in turn would spur reforms and arrest the economy’s slide. The Brazilian Senate subsequently voted to impeach Rousseff and suspended her from the presidency on May 12, 2016, amid accusations that she lied about the country’s fiscal condition. Chile and Mexico both posted healthy gross domestic product (GDP) growth over the reporting period. Mexico’s inflation rate eased to a record low, allowing the central bank to raise interest rates in a bid to support the currency. Colombia unexpectedly hiked its benchmark interest rate as inflation surged on the back of a severe drought. In Argentina, shares rose after pro-business Mauricio Macri was elected as president, and a deal with the country’s debtors led to a bond sale to repay outstanding creditors from a 2001 default; investors responded favorably to the offering.
The Fund’s Brazilian holdings were among the biggest contributors to performance for the reporting period. Banco Bradesco’s stock price rebounded sharply to narrow the discount to its banking-sector peers, and mall operator Multiplan’s share price rose significantly. Both the banking and real estate sectors benefited from political optimism, as well as the prospect of lower interest rates, as inflation began to slow. The absence of a holding in America Movil also benefited the Fund’s relative performance, as shares of the Mexican telecom fell sharply due to continued regulatory and competitive pressures.
Conversely, the Fund’s lack of exposure to Brazilian state-owned oil company Petrobras was a key detractor from the relative performance for the reporting period, as its stock price rallied ahead of the wider Brazilian market. The holding in Valid Solucoes also weighed on Fund performance, as the payment and mobile solutions company posted weaker-than-expected results for the fourth quarter of its 2015 fiscal year because of poor performance in its means-of-payment division. Additionally, the Fund’s holding in Mexican airport operator Grupo Aeroportuario del Sureste (Asur) detracted from performance as its shares lagged the rally in the broader Latin American markets.
During the reporting period, we initiated positions in Cementos Pacasmayo, a Peruvian cement producer that we felt was attractively priced, and Grupo Lala, a leading dairy business in Mexico. We also switched a portion of the Fund’s holding in Banco Bradesco’s ordinary shares to its preferred shares in an effort to capitalize on the widening discount between the two share classes. Additionally, we exercised our rights to participate in Chilean mall operator Parque Arauco’s capital-raising, as we believed that the stock had an attractive valuation and the company had implemented a well-mapped development pipeline.
We believe that renewed investor risk appetite and the potential stabilization of the oil price for a longer period may bode well for Latin American equities. The risk of acceleration in China’s economic slowdown, or of a poor monetary policy response from the People’s Bank of China to prevent it, also may have a notable impact on the markets. With Brazilian President Dilma Rousseff’s ouster now almost complete and pragmatist Michel Temer assuming the office, all eyes have turned to watch his efforts to stem the economic slide in that country, even as his approval ratings remain low amid corruption allegations. In Mexico, although the economic outlook remains muted, we feel that the federal government appears to be making the right moves to meet its fiscal targets, cutting spending and maintaining budget austerity. Argentine President Macri is prescribing similar economic medicine, removing utilities subsidies in a bid to improve the nation’s finances. Despite the headwinds, the Fund’s positioning continues to reflect the strategy of diversification* as we look for businesses that in our view have differentiating attributes. We believe that the Fund’s holdings can take advantage of long-term growth drivers in Latin America to reap rewards and boost returns.
Portfolio Management:
Aberdeen Global Emerging Markets Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
2016 Semi-Annual Report
72
* | Diversification does not ensure a profit or protect against a loss in a declining market. |
Aberdeen Latin American Equity Fund (Unaudited) (concluded)
Risk Considerations
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Concentrating investments in Latin America subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Latin American countries may be subject to a greater degree of political, sovereign and economic instability than is the case in the United States and Europe. Some Latin American countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Because the Fund is non-diversified, the Fund may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return than it would on that of a diversified fund.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
73
Aberdeen Latin American Equity Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | Inception1 | |||||||||||
Class A | w/o SC | 18.03% | (6.91% | ) | (12.49% | ) | ||||||||
w/SC2 | 11.26% | (12.23% | ) | (14.15% | ) | |||||||||
Class C | w/o SC | 17.76% | (7.64% | ) | (13.11% | ) | ||||||||
w/SC3 | 16.76% | (8.56% | ) | (13.11% | ) | |||||||||
Class R4 | w/o SC | 18.11% | (7.22% | ) | (12.67% | ) | ||||||||
Institutional Service Class4 | w/o SC | 18.21% | (6.71% | ) | (12.24% | ) | ||||||||
Institutional Class4 | w/o SC | 18.21% | (6.71% | ) | (12.24% | ) |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on March 25, 2013. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
Semi-Annual Report 2016
74
Aberdeen Latin American Equity Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Latin American Equity Fund, the Morgan Stanley Capital International (MSCI) Emerging Markets (EM) Latin America 10/40 Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI EM Latin America 10/40 Index is designed to measure the performance of the large and mid cap segments across 5 Emerging Market (EM) countries in Latin America. With 121 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI 10/40 equity indexes are designed and maintained on a daily basis to take into consideration the 10% and 40% concentration constraints on funds subject to the UCITS III Directive. EM Latin America countries include: Brazil, Chile, Colombia, Mexico and Peru.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 87.1% | |||
Preferred Stocks | 9.1% | |||
Other assets in excess of liabilities | 3.8% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 34.7% | |||
Consumer Staples | 24.9% | |||
Industrials | 11.8% | |||
Consumer Discretionary | 10.6% | |||
Energy | 6.6% | |||
Materials | 5.1% | |||
Health Care | 1.4% | |||
Information Technology | 1.1% | |||
Other | 3.8% | |||
100.0% |
Top Holdings | ||||
Banco Bradesco SA, Preferred Shares | 8.3% | |||
Itau Unibanco Holding SA | 7.2% | |||
Multiplan Empreendimentos Imobiliarios SA | 4.8% | |||
Lojas Renner SA | 4.4% | |||
Fomento Economico Mexicano SAB de CV, ADR | 4.4% | |||
Grupo Financiero Banorte SAB de CV | 4.2% | |||
Ultrapar Participacoes SA | 4.2% | |||
AMBEV SA | 4.1% | |||
BRF SA | 3.3% | |||
Wal-Mart de Mexico SAB de CV | 3.1% | |||
Other | 52.0% | |||
100.0% |
Top Countries | ||||
Brazil | 56.5% | |||
Mexico | 22.3% | |||
Chile | 10.0% | |||
Colombia | 2.5% | |||
Peru | 2.5% | |||
Argentina | 2.4% | |||
Other | 3.8% | |||
100.0% |
Semi-Annual Report 2016
75
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Latin American Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (87.1%) | ||||||||
ARGENTINA (2.4%) | ||||||||
Energy (2.4%) | ||||||||
Tenaris SA, ADR | 3,000 | $ | 81,210 | |||||
BRAZIL (47.4%) | ||||||||
Consumer Discretionary (7.7%) | ||||||||
Arezzo Industria e Comercio SA | 12,601 | 88,849 | ||||||
Cia Hering | 6,000 | 24,529 | ||||||
Lojas Renner SA | 25,150 | 151,883 | ||||||
265,261 | ||||||||
Consumer Staples (8.7%) | ||||||||
AMBEV SA | 25,328 | 142,796 | ||||||
BRF SA | 7,900 | 113,013 | ||||||
Natura Cosmeticos SA | 5,900 | 43,745 | ||||||
299,554 | ||||||||
Energy (4.2%) | ||||||||
Ultrapar Participacoes SA | 6,800 | 143,187 | ||||||
Financials (15.6%) | ||||||||
BM&F Bovespa SA | 16,000 | 79,924 | ||||||
Iguatemi Empresa de Shopping Centers SA | 5,500 | 42,698 | ||||||
Itau Unibanco Holding SA | 29,679 | 246,545 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 9,700 | 166,262 | ||||||
535,429 | ||||||||
Health Care (1.4%) | ||||||||
OdontoPrev SA | 16,400 | 49,878 | ||||||
Industrials (5.6%) | ||||||||
Localiza Rent a Car SA | 5,305 | 50,902 | ||||||
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA | 3,619 | 36,829 | ||||||
WEG SA | 12,780 | 56,408 | ||||||
Wilson Sons Ltd., BDR | 5,300 | 47,464 | ||||||
191,603 | ||||||||
Information Technology (1.1%) | ||||||||
Totvs SA | 4,500 | 36,898 | ||||||
Materials (3.1%) | ||||||||
Vale SA | 18,500 | 105,914 | ||||||
1,627,724 | ||||||||
CHILE (10.0%) | ||||||||
Consumer Discretionary (2.9%) | ||||||||
S.A.C.I. Falabella | 13,100 | 99,242 | ||||||
Consumer Staples (2.9%) | ||||||||
Embotelladora Andina SA, Class A (a) | 32,000 | 99,293 | ||||||
Financials (4.2%) | ||||||||
Banco Santander Chile, ADR | 4,400 | 85,360 | ||||||
Parque Arauco SA | 31,275 | 60,829 | ||||||
146,189 | ||||||||
344,724 | ||||||||
COLOMBIA (2.5%) | ||||||||
Consumer Staples (1.0%) | ||||||||
Almacenes Exito SA | 6,400 | 35,991 | ||||||
Financials (1.5%) | ||||||||
Bancolombia SA | 5,750 | 51,471 | ||||||
87,462 | ||||||||
MEXICO (22.3%) | ||||||||
Consumer Staples (12.3%) | ||||||||
Arca Continental SAB de CV | 9,100 | 62,773 | ||||||
Fomento Economico Mexicano SAB de CV, ADR | 1,600 | 149,136 | ||||||
Grupo Lala SAB de CV | 14,000 | 37,440 | ||||||
Kimberly-Clark de Mexico SAB de CV, Class A | 16,100 | 38,274 | ||||||
Organizacion Soriana SAB de CV, Class B (b) | 11,500 | 27,679 | ||||||
Wal-Mart de Mexico SAB de CV | 43,300 | 107,013 | ||||||
422,315 | ||||||||
Financials (5.1%) | ||||||||
Grupo Financiero Banorte SAB de CV | 25,216 | 143,370 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B | 17,900 | 32,835 | ||||||
176,205 | ||||||||
Industrials (4.9%) | ||||||||
Grupo Aeroportuario del Centro Norte SAB de CV, ADR | 1,800 | 83,574 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, ADR, B Shares | 550 | 84,612 | ||||||
168,186 | ||||||||
766,706 | ||||||||
PERU (2.5%) | ||||||||
Industrials (1.3%) | ||||||||
Grana y Montero SA, ADR | 6,522 | 44,937 | ||||||
Materials (1.2%) | ||||||||
Cementos Pacasmayo SAA | 21,677 | 39,258 | ||||||
84,195 | ||||||||
Total Common Stocks | 2,992,021 | |||||||
PREFERRED STOCKS (9.1%) | ||||||||
BRAZIL (9.1%) | ||||||||
Financials (8.3%) | ||||||||
Banco Bradesco SA, Preferred Shares | 37,730 | 284,134 | ||||||
Materials (0.8%) | ||||||||
Bradespar SA, Preferred Shares | 7,500 | 18,470 | ||||||
Vale SA, ADR, Preferred Shares | 2,300 | 10,442 | ||||||
28,912 | ||||||||
313,046 | ||||||||
Total Preferred Stocks | 313,046 | |||||||
Total Investments | 3,305,067 | |||||||
Other assets in excess of liabilities—3.8% | 129,636 | |||||||
Net Assets—100.0% |
| $ | 3,434,703 |
See accompanying Notes to Financial Statements.
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Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Latin American Equity Fund
(a) | This share class contains full voting rights and no preference on dividends. The two share classes of this company are formally labeled as preferred. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADR | American Depositary Receipt |
BDR | Brazilian Depositary Receipt |
See accompanying Notes to Financial Statements.
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Aberdeen U.S. Mid Cap Equity Fund (Unaudited)
The Aberdeen U.S. Mid Cap Equity Fund (Institutional Class shares net of fees) returned 7.90% from the date of its inception on February 29, 2016, to the end of the reporting period on April 30, 2016, versus 8.75% for its benchmark, the Russell Midcap Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Mid-Cap Core Funds (consisting of 158 funds), as measured by Lipper, Inc., was 9.88% for the period.
Major North American equity market indices saw mixed performance amid periods of volatility during the reporting period of February 29, 2016 to April 30, 2016. U.S. mid-cap stocks, as measured by the Russell Midcap Index, gained 8.75% versus the respective 7.20% and 9.33% returns of the broader-market S&P 500 Index and the Russell 2000 Index, the small-cap company benchmark. All 10 sectors within the Russell Midcap Index recorded positive returns over the reporting period. The energy, materials and financials sectors garnered double-digit gains and were the strongest performers within the Russell Midcap Index for the two-month period, while the consumer discretionary, consumer staples and information technology sectors were the most notable market laggards.
On the closely watched monetary policy front over the reporting period, the U.S. Federal Reserve (Fed) left the federal funds rate unchanged following its meeting in March 2016. In late April, the Fed announced its intention to maintain the federal funds rate at a range of 0.25%-0.50% for the foreseeable future. The central bank noted that, while household spending growth has moderated, real income has increased and consumer sentiment remains high. Perhaps more importantly, in our view, the Fed removed risk language referencing concerns about global economic and financial developments from its statement, which we believe may leave a June 2016 interest rate hike on the table.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) grew at a generally lower-than-expected rate of 0.5% in the first quarter of 2016, down from the 1.4% rate in the previous quarter. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are subtracted from GDP), which offset the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate* rose steadily for most of the reporting period before dipping slightly in April, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
Aberdeen’s investment approach is based on bottom-up company analysis. We believe that, given the inefficiency of markets, strong long-term returns are achieved by identifying good-quality stocks, buying them at reasonable prices and holding them for the long run. In our view, sound fundamentals drive stock prices over time. As a consequence of our rigorous selection criteria, we introduce new stocks infrequently, the result of which is reflected in our portfolios’ typically low annual turnover rates. Our research process relies primarily on gathering information from meetings with company management and public filings. We prepare written analysis after each management meeting in a standard Aberdeen format used by our regional teams worldwide. Investment in a new company is made only after our investment managers have met with management, written detailed research reports and thoroughly discussed the merits of the company in a team-based setting. We do not actively seek to overweight or underweight companies in a benchmark index. Instead, we focus on each investment on its own merit. We will not own a stock due solely to its sizeable position in an index.
After the Fund was launched on February 29, 2016, the Aberdeen North American Equity team began to position the Fund in accordance with Aberdeen’s investment process.
We expect the equity markets to maintain the level of volatility that we have seen thus far in 2016. We believe that investors will continue to focus on Fed action (or inaction), the outcome of a what has been a contentious U.S. presidential election, in addition to any impact from the macroeconomic environment beyond our borders. In short, we think that investor sentiment around these issues may dictate the performance of the markets more in the short term than actual underlying corporate fundamentals.
Stepping back and looking at our businesses, however, we feel that the underlying environment remains supportive, though it is not flourishing. Management teams of the companies that the Fund holds have reacted to the broader macroeconomic uncertainty, which has presented itself in fits and starts for the better part of a year. While capital investment has continued, albeit at a tepid pace, we have also seen companies more apt to borrow ahead of interest-rate increases, using the debt largely to fund mergers and acquisitions, and in rarer cases, share repurchase activity. We are constantly discussing the use of leverage with the management teams of the Fund’s company holdings in an effort to ensure that their borrowing does not lend risk to the companies’ balance sheets and that earnings per share (EPS) “accretion” (i.e., increasing the EPS) is not the driving motivation, but that every decision has a sound strategic rationale and improves the prospects for the business. Furthermore, we think there also remains uncertainty in actual supply/demand dynamics for commodity-related industries going forward, while more recently in the retail sector, companies are trying to move their business models to thrive – if not simply survive – in the new multi-channel retail landscape.
For the overall U.S. equity market, valuations are neither cheap nor expensive, but appear to be fair in the context of underlying earnings growth, in our opinion. Volatility presents challenges, but also opportunities for those that can look beyond a quarter or two towards the long-term prospects of businesses. Amid this landscape, we feel that selectivity – and, therefore, active management – are crucial.
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* | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
Aberdeen U.S. Mid Cap Equity Fund (Unaudited) (concluded)
Portfolio Management:
Aberdeen North American Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
The Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade decrease in value.
The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.
Equity stocks of mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
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Aberdeen U.S. Mid Cap Equity Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Inception†1 | |||||
Class A | w/o SC | 7.80% | ||||
w/SC2 | 1.60% | |||||
Class C | w/o SC | 7.70% | ||||
w/SC3 | 6.70% | |||||
Class R4 | w/o SC | 7.80% | ||||
Institutional Service Class4 | w/o SC | 7.90% | ||||
Institutional Class4 | w/o SC | 7.90% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Fund commenced operations on February 29, 2016. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
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Aberdeen U.S. Mid Cap Equity Fund (Unaudited)
Performance of a $1,000,000 Investment* (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional shares of the Aberdeen U.S. Mid Cap Equity Fund, Russell Midcap® Index and the Consumer Price Index (CPI) over inception period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 31% of the total market capitalization of the Russell 1000 companies. The Russell 1000® Index is constructed to provide a comprehensive and unbiased barometer for the mid-cap segment. The index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap opportunity set.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 97.8% | |||
Other assets in excess of liabilities | 2.2% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 18.6% | |||
Industrials | 16.2% | |||
Health Care | 14.9% | |||
Information Technology | 13.1% | |||
Consumer Discretionary | 12.2% | |||
Consumer Staples | 8.3% | |||
Materials | 7.1% | |||
Utilities | 4.5% | |||
Energy | 2.9% | |||
Other | 2.2% | |||
100.0% |
Top Holdings | ||||
M&T Bank Corp. | 3.7% | |||
Molson Coors Brewing Co. | 3.6% | |||
BorgWarner, Inc. | 3.3% | |||
Baxter International, Inc. | 3.3% | |||
PVH Corp. | 3.2% | |||
Casey’s General Stores, Inc. | 3.1% | |||
Bank of the Ozarks, Inc. | 3.1% | |||
International Flavors & Fragrances, Inc. | 3.0% | |||
Core Laboratories NV | 2.9% | |||
PAREXEL International Corp. | 2.7% | |||
Other | 68.1% | |||
100.0% |
Top Countries | ||||
United States | 91.9% | |||
Netherlands | 2.9% | |||
Israel | 2.0% | |||
Canada | 1.0% | |||
Other | 2.2% | |||
100.0% |
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Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen U.S. Mid Cap Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (97.8%) | ||||||||
CANADA (1.0%) | ||||||||
Industrials (1.0%) | ||||||||
Ritchie Bros Auctioneers, Inc. | 382 | $ | 10,960 | |||||
ISRAEL (2.0%) | ||||||||
Information Technology (2.0%) | ||||||||
Check Point Software Technologies Ltd. (a) | 256 | 21,215 | ||||||
NETHERLANDS (2.9%) | ||||||||
Energy (2.9%) | ||||||||
Core Laboratories NV | 234 | 31,276 | ||||||
UNITED STATES (91.9%) | ||||||||
Consumer Discretionary (12.2%) | ||||||||
BorgWarner, Inc. | 1,001 | 35,956 | ||||||
Pool Corp. | 200 | 17,482 | ||||||
PVH Corp. | 355 | 33,938 | ||||||
Ross Stores, Inc. | 400 | 22,712 | ||||||
Tiffany & Co. | 300 | 21,405 | ||||||
131,493 | ||||||||
Consumer Staples (8.3%) | ||||||||
Casey’s General Stores, Inc. | 300 | 33,600 | ||||||
Mead Johnson Nutrition Co. | 200 | 17,430 | ||||||
Molson Coors Brewing Co. | 400 | 38,252 | ||||||
89,282 | ||||||||
Financials (18.6%) | ||||||||
Bank of the Ozarks, Inc. | 800 | 33,040 | ||||||
CBOE Holdings, Inc. | 454 | 28,130 | ||||||
Digital Realty Trust, Inc., REIT | 249 | 21,907 | ||||||
Healthcare Realty Trust, Inc., REIT | 700 | 21,196 | ||||||
Jones Lang LaSalle, Inc. | 239 | 27,526 | ||||||
M&T Bank Corp. | 338 | 39,992 | ||||||
Moody’s Corp. | 300 | 28,716 | ||||||
200,507 | ||||||||
Health Care (14.9%) | ||||||||
Baxter International, Inc. | 800 | 35,376 | ||||||
Cerner Corp. (a) | 400 | 22,456 | ||||||
Globus Medical, Inc., Class A (a) | 1,000 | 25,040 | ||||||
Mettler-Toledo International, Inc. (a) | 60 | 21,477 | ||||||
PAREXEL International Corp. (a) | 484 | 29,573 | ||||||
Teleflex, Inc. | 171 | 26,638 | ||||||
160,560 | ||||||||
Industrials (15.2%) | ||||||||
CH Robinson Worldwide, Inc. | 200 | 14,194 | ||||||
Equifax, Inc. | 239 | 28,739 | ||||||
Kansas City Southern | 236 | 22,361 | ||||||
Republic Services, Inc. | 585 | 27,536 | ||||||
Rockwell Automation, Inc. | 238 | 27,006 | ||||||
Snap-on, Inc. | 135 | 21,503 | ||||||
Verisk Analytics, Inc. (a) | 300 | 23,274 | ||||||
164,613 | ||||||||
Information Technology (11.1%) | ||||||||
Alliance Data Systems Corp. (a) | 138 | 28,057 | ||||||
Analog Devices, Inc. | 400 | 22,528 | ||||||
FEI Co. | 300 | 26,706 | ||||||
Genpact Ltd. (a) | 800 | 22,312 | ||||||
Paychex, Inc. | 400 | 20,848 | ||||||
120,451 | ||||||||
Materials (7.1%) | ||||||||
International Flavors & Fragrances, Inc. | 273 | 32,615 | ||||||
Sherwin-Williams Co. | 72 | 20,686 | ||||||
Sonoco Products Co. | 500 | 23,445 | ||||||
76,746 | ||||||||
Utilities (4.5%) | ||||||||
American Water Works Co., Inc. | 300 | 21,828 | ||||||
CMS Energy Corp. | 651 | 26,483 | ||||||
48,311 | ||||||||
991,963 | ||||||||
Total Common Stocks | 1,055,414 | |||||||
Total Investments | 1,055,414 | |||||||
Other assets in excess of liabilities—2.2% | 23,726 | |||||||
Net Assets—100.0% | $ | 1,079,140 |
(a) | Non-income producing security. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
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Aberdeen U.S. Multi-Cap Equity Fund (Unaudited)
As of October 31, 2015, the Fund’s name changed from Aberdeen U.S. Equity Fund to Aberdeen U.S. Multi-Cap Equity Fund to better reflect the market capitalization of the Fund’ equity portfolio going forward. Effective October 31, 2015, the Fund’s portfolio management team began investing more heavily in U.S. equity securities of small- and mid-capitalization companies than it had in the past. The Fund also changed it benchmark at that time from the Standard & Poor’s (S&P) 500 Index to the Russell 3000 Index. The Fund’s investment adviser believes that the Russell 3000 Index is a more meaningful comparison index given the size of the companies in which the Fund intends to invest.
The Aberdeen U.S. Multi-Cap Equity Fund (Institutional Class shares net of fees) returned 1.10% for the six-month period ended April 30, 2016, versus the 0.06% return of its benchmark, the Russell 3000 Index, and 0.43% for the broader-market S&P 500 Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Multi-Cap Core Funds (consisting of 274 funds), as measured by Lipper, Inc., was -1.31% for the period.
Major North American equity market indices saw mixed performance amid periods of volatility over the six-month period ended April 30, 2016, weathering a downturn in late April amid a sell-off in the technology sector and concerns about slowing U.S. economic growth. Shares of large-cap companies, as measured by the broader-market S&P 500 Index, returned 0.43%, outpacing the -1.90% return of their small-cap counterparts, as represented by the Russell 2000 Index, but underperforming the 0.81% gain the Russell Midcap Index, the mid-cap equity market benchmark. The generally more defensive and higher-dividend-paying utilities and telecommunication services sectors were the strongest performers within the Russell 3000 Index for the reporting period, while the more cyclical information technology and healthcare sectors were the primary market laggards.
As widely expected, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (0.25%) in mid-December 2015, and subsequently left the benchmark interest rate unchanged following its meetings in January and March 2016. Towards the end of the reporting period in April, the Fed announced its intention to maintain the federal funds rate at a range of 0.25%-0.50% for the foreseeable future. The central bank noted that, while household spending growth has moderated, real income has increased and consumer sentiment remains high. Perhaps more importantly, in our view, the Fed removed risk language referencing concerns about global economic and financial developments from its statement, which we believe may leave a June 2016 interest rate hike on the table.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) expanded by 1.4% in the fourth quarter of 2015, but subsequently decelerated to a 0.5% rate in the first quarter of 2016. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are subtracted from GDP), which offset the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the six-month reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate* rose steadily for most of the reporting period before dipping slightly in April, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
Fund performance for the reporting period was bolstered mainly by an underweight allocation to the information technology sector relative to the benchmark, as well as overall positioning in the healthcare sector. The most notable contributors among individual holdings included medical technology products maker Teleflex and diversified healthcare company Baxter International.
Teleflex continues to experience pressures on its revenue due to foreign exchange, but the underlying business has proven fairly resilient, in our view, with a strong focus on margin improvements through restructuring and efficiency efforts. Baxter International’s quarterly results over the reporting period benefited from healthy revenue growth in its hospital products segment and international business. Additionally, similar to Teleflex, Baxter International also is focusing on margin improvement by rationalizing costs. The lack of exposure to Apple also had a positive impact on Fund performance as its share price fell sharply over the reporting period. While we acknowledge the company’s innovations, we historically have had issues with the lack of visibility into its business and its high dependence on a single product.
Overall positioning in the financials sector and stock selection in the materials sector weighed modestly on Fund performance for the period. The most significant individual stock detractors from performance were Arkansas-based Bank of the Ozarks, IT and business outsourcing services provider Cognizant Technology Solutions, and biopharmaceutical firm Gilead Sciences. Bank of the Ozarks reported relatively strong results during the reporting period attributable to an increase in net interest income and improved credit quality in its loan portfolio. However, the company’s shares declined along with those of its peers in the banking sector due to more dovish monetary policy signals from the Fed in addition to concerns about slowing commercial real estate activity. Cognizant Technology Solutions recorded generally positive results over the reporting period, with particular strength in its financial and healthcare segments. Nonetheless, the company’s shares declined along with those of its peers amid the sell-off in the information technology sector. The company also has faced questions about the pace of revenue growth, as well as a potential shift in competitive landscape going forward as it looks toward higher-value-added services. Finally, Gilead Sciences saw a slowdown in revenue growth over the reporting period. Relative weakness in the U.S. offset strength in Europe and an increase in sales of the company’s Sovaldi and Harvoni, its two hepatitis treatment medications, in Japan.
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* | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
Aberdeen U.S. Multi-Cap Equity Fund (Unaudited) (concluded)
Following the renaming of the Fund and the change in its investment objective on October 31, 2015, the Aberdeen North American Equity team began to position the Fund in accordance with Aberdeen’s investment process. We subsequently established a new holding in consumer credit reporting services provider Equifax and exited the position in analytics software company Fair Isaac Corp. (FICO).
We expect the equity markets to maintain the level of volatility that we have seen thus far in 2016. We believe that investors will continue to focus on Fed action (or inaction), the outcome of a what has been a contentious U.S. presidential election, in addition to any impact from the macroeconomic environment beyond our borders. In short, we think that investor sentiment around these issues may dictate the performance of the markets more in the short term than actual underlying corporate fundamentals.
Stepping back and looking at our businesses, however, we feel that the underlying environment remains supportive, though it is not flourishing. Management teams of the companies that the Fund holds have reacted to the broader macroeconomic uncertainty, which has presented itself in fits and starts for the better part of a year. While capital investment has continued, albeit at a tepid pace, we have also seen companies more apt to borrow ahead of interest-rate increases, using the debt largely to fund mergers and acquisitions, and in rarer cases, share repurchase activity. We are constantly discussing the use of leverage with the management teams of the Fund’s company holdings in an effort to ensure that their borrowing does not lend risk to the companies’ balance sheets and that earnings per share (EPS) “accretion” (i.e., increasing the EPS) is not the driving motivation, but that every decision has a sound strategic rationale and improves the prospects for the business. Furthermore, we think there also remains uncertainty in actual supply/demand dynamics for commodity-related industries going forward, while more recently in the retail sector, companies are trying to move their business models to thrive – if not simply survive – in the new multi-channel retail landscape.
For the overall U.S. equity market, valuations are neither cheap nor expensive, but appear to be fair in the context of underlying earnings growth. in our opinion. Volatility presents challenges, but also opportunities for those that can look beyond a quarter or two towards the long-term prospects of businesses. Amid this landscape, we feel that selectivity – and, therefore, active management – are crucial.
Portfolio Management:
Aberdeen North American Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
The Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade decrease in value.
The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Equity stocks of small- and mid-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
84
Aberdeen U.S. Multi-Cap Equity Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 0.90% | (1.82% | ) | 6.87% | 4.84% | ||||||||||||
w/SC2 | (4.87% | ) | (7.48% | ) | 5.62% | 4.22% | ||||||||||||
Class C | w/o SC | 0.53% | (2.54% | ) | 6.09% | 4.11% | ||||||||||||
w/SC3 | (0.42% | ) | (3.46% | ) | 6.09% | 4.11% | ||||||||||||
Class R4 | w/o SC | 0.80% | (2.06% | ) | 6.63% | 4.64% | ||||||||||||
Institutional Service Class4,5 | w/o SC | 1.07% | (1.59% | ) | 7.12% | 5.13% | ||||||||||||
Institutional Class4 | w/o SC | 1.10% | (1.52% | ) | 7.19% | 5.17% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | Returns from June 23, 2008 to October 9, 2011 reflect the performance of a predecessor fund (the “Predecessor Fund”). In addition, after February 28, 2009, the Predecessor Fund changed its investment style and became diversified. The returns prior to June 23, 2008 reflect the performance of another predecessor fund (the “Second Predecessor Fund”), which was acquired by the Predecessor Fund. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (October 10, 2011) are based on the previous performance of the Institutional Class of the Predecessor Fund and Second Predecessor Fund. This performance is substantially similar to what the Institutional Service Class would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the two classes. |
2016 Semi-Annual Report
85
Aberdeen U.S. Multi-Cap Equity Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen U.S. Multi-Cap Equity Fund, Russell 3000® Index, S&P 500 Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Effective October 31, 2015, the Russell 3000 Index replaced the S&P 500 Index as the Fund’s benchmark index. The Adviser believes that the Russell 3000 Index is a more meaningful comparison index given the size of the companies in which the Fund intends to invest. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected.
The S&P 500® Index represents largecap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available U.S. market capitalization.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 98.6% | |||
Repurchase Agreement | 1.5% | |||
Liabilities in excess of other assets | (0.1% | ) | ||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 16.3% | |||
Industrials | 16.2% | |||
Consumer Staples | 13.2% | |||
Information Technology | 12.1% | |||
Health Care | 12.1% | |||
Consumer Discretionary | 11.6% | |||
Materials | 10.2% | |||
Energy | 6.9% | |||
Other | 1.4% | |||
100.0% |
Top Holdings* | ||||
Visa, Inc., Class A | 4.0% | |||
M&T Bank Corp. | 3.6% | |||
CVS Health Corp. | 3.4% | |||
Charles Schwab Corp. (The) | 3.3% | |||
PVH Corp. | 3.2% | |||
Intercontinental Exchange, Inc. | 3.0% | |||
EOG Resources, Inc. | 3.0% | |||
Casey’s General Stores, Inc. | 3.0% | |||
PAREXEL International Corp. | 2.9% | |||
Oracle Corp. | 2.8% | |||
Other | 67.8% | |||
100.0% |
Top Countries | ||||
United States | 95.6% | |||
Canada | 2.7% | |||
Netherlands | 1.8% | |||
Other | (0.1% | ) | ||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
86
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen U.S. Multi-Cap Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (98.6%) | ||||||||
CANADA (2.7%) | ||||||||
Industrials (2.7%) | ||||||||
Canadian National Railway Co. | 155,562 | $ | 9,576,397 | |||||
NETHERLANDS (1.8%) | ||||||||
Energy (1.8%) | ||||||||
Core Laboratories NV | 47,600 | 6,362,216 | ||||||
UNITED STATES (94.1%) | ||||||||
Consumer Discretionary (11.6%) | ||||||||
BorgWarner, Inc. | 226,877 | 8,149,422 | ||||||
Comcast Corp., Class A | 117,900 | 7,163,604 | ||||||
Pool Corp. | 65,000 | 5,681,650 | ||||||
PVH Corp. | 117,056 | 11,190,553 | ||||||
TJX Cos., Inc. | 114,985 | 8,718,163 | ||||||
40,903,392 | ||||||||
Consumer Staples (13.2%) | ||||||||
Casey’s General Stores, Inc. | 93,100 | 10,427,200 | ||||||
Costco Wholesale Corp. | 53,602 | 7,940,065 | ||||||
CVS Health Corp. | 120,064 | 12,066,432 | ||||||
Estee Lauder Cos., Inc., Class A | 76,453 | 7,329,549 | ||||||
Philip Morris International, Inc. | 90,483 | 8,878,192 | ||||||
46,641,438 | ||||||||
Energy (5.1%) | ||||||||
EOG Resources, Inc. | 126,228 | 10,428,957 | ||||||
Schlumberger Ltd. | 94,466 | 7,589,399 | ||||||
18,018,356 | ||||||||
Financials (16.3%) | ||||||||
American International Group, Inc. | 132,325 | 7,386,381 | ||||||
Bank of the Ozarks, Inc. | 192,220 | 7,938,686 | ||||||
Charles Schwab Corp. (The) | 407,300 | 11,571,393 | ||||||
Intercontinental Exchange, Inc. | 43,927 | 10,543,798 | ||||||
M&T Bank Corp. | 107,800 | 12,754,896 | ||||||
Moody’s Corp. | 76,800 | 7,351,296 | ||||||
57,546,450 | ||||||||
Health Care (12.1%) | ||||||||
Baxter International, Inc. | 167,000 | 7,384,740 | ||||||
Gilead Sciences, Inc. | 85,399 | 7,533,046 | ||||||
Globus Medical, Inc., Class A (a) | 351,473 | 8,800,884 | ||||||
PAREXEL International Corp. (a) | 164,700 | 10,063,170 | ||||||
Teleflex, Inc. | 56,732 | 8,837,711 | ||||||
42,619,551 | ||||||||
Industrials (13.5%) | ||||||||
Deere & Co. | 98,129 | 8,253,630 | ||||||
Equifax, Inc. | 62,153 | 7,473,898 | ||||||
Lockheed Martin Corp. | 41,982 | 9,755,777 | ||||||
RBC Bearings, Inc. (a) | 97,701 | 7,161,483 | ||||||
Rockwell Automation, Inc. | 67,600 | 7,670,572 | ||||||
Verisk Analytics, Inc. (a) | 96,561 | 7,491,203 | ||||||
47,806,563 | ||||||||
Information Technology (12.1%) | ||||||||
Cognizant Technology Solutions Corp., Class A (a) | 162,600 | 9,490,962 | ||||||
Oracle Corp. | 247,529 | 9,866,506 | ||||||
Texas Instruments, Inc. | 162,700 | 9,280,408 | ||||||
Visa, Inc., Class A | 181,076 | 13,986,310 | ||||||
42,624,186 | ||||||||
Materials (10.2%) | ||||||||
Compass Minerals International, Inc. | 113,600 | 8,515,456 | ||||||
Ecolab, Inc. | 77,200 | 8,876,456 | ||||||
Praxair, Inc. | 78,905 | 9,268,181 | ||||||
Sensient Technologies Corp. | 141,400 | 9,509,150 | ||||||
36,169,243 | ||||||||
332,329,179 | ||||||||
Total Common Stocks | 348,267,792 | |||||||
REPURCHASE AGREEMENT (1.5%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price 5,413,014 collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $5,523,213 | $ | 5,413,000 | 5,413,000 | |||||
Total Repurchase Agreement | 5,413,000 | |||||||
Total Investments | 353,680,792 | |||||||
Liabilities in excess of other assets—(0.1)% | (402,181 | ) | ||||||
Net Assets—100.0% |
| $ | 353,278,611 |
(a) | Non-income producing security. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
87
Aberdeen U.S. Small Cap Equity Fund (Unaudited)
As of February 29, 2016, the Fund’s investment strategy changed and its name changed from Aberdeen Small Cap Fund to Aberdeen U.S. Small Cap Equity Fund. Performance information for periods prior to February 29, 2016 does not reflect the current investment strategy.
The Aberdeen U.S. Small Cap Equity Fund (Institutional Class shares net of fees) returned 5.78% for the six-month period ended April 30, 2016, versus -1.90% for its benchmark, the Russell 2000 Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Small-Cap Core Funds (consisting of 296 funds), as measured by Lipper, Inc., was -1.14% for the period.
Major North American equity market indices saw mixed performance amid periods of volatility over the six-month period ended April 30, 2016, with pronounced market weakness in January followed by a rebound in the latter half of the period as global economic concerns waned. Shares of U.S. small-cap companies, as represented by the Russell 2000 Index, returned -1.90% and underperformed their large-cap counterparts, as measured by the broader-market S&P 500 Index, which posted a modest gain of 0.43% for the period. The utilities and materials sectors were the strongest-performing sectors within the Russell 2000 Index for the reporting period, while the energy and healthcare sectors recorded negative returns and were the primary market laggards.
As widely expected, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (0.25%) in mid-December 2015, and subsequently left the benchmark interest rate unchanged following its meetings in January and March 2016. Towards the end of the reporting period in April, the Fed announced its intention to maintain the federal funds rate at a range of 0.25%-0.50% for the foreseeable future. The central bank noted that, while household spending growth has moderated, real income has increased and consumer sentiment remains high. Perhaps more importantly, in our view, the Fed removed risk language referencing concerns about global economic and financial developments from its statement, which we believe may leave a June 2016 interest rate hike on the table.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) expanded by 1.4% in the fourth quarter of 2015, but subsequently decelerated to a 0.5% rate in the first quarter of 2016. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are subtracted from GDP), which offset the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the six-month reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate* rose steadily for most of the reporting period before dipping slightly in April, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
Stock selection in the healthcare, information technology and industrials sectors bolstered the Fund’s relative performance for the reporting period. The most notable contributors among individual holdings were waste management services provider Progressive Waste Solutions, payment-processing services provider Heartland Payment Systems, and life sciences technology company FEI Company. Shares of Progressive Waste Solutions rose sharply in January 2016 following the announcement that Waste Connections would acquire the firm. We subsequently exited the position in February due to the run-up in the stock price and our belief that there were better opportunities elsewhere. In December 2015, Global Payments (which the Fund does not hold) announced an agreement to purchase Heartland Payment Systems for $3.8 billion in cash and stock. We exited the Fund’s position in the company in February 2016. FEI Company’s results for its 2015 fiscal year benefited from higher operating margins, strong order bookings, and an increased backlog of orders.
Conversely, the Fund’s relative performance for the period was hampered somewhat by the lack of exposure to the utilities sector and an underweight allocation to the financials sector relative to its benchmark, the Russell 2000 Index. The primary individual stock detractors included optoelectronic components manufacturer OSI Systems, Multi-Color Corp., a global maker of packaging labels, and Arkansas-based Bank of the Ozarks. OSI Systems’ results for the second and third quarters of its 2016 fiscal year generally did not meet investors’ expectations due to customer order delays in the security segment and relatively weak healthcare product rollouts. Multi-Color Corp. posted relatively mixed operating results over the reporting period. Strength in the company’s Wine & Spirit unit was offset by weakness in North America, along with incurred restructuring costs and higher expenses. Bank of the Ozarks reported relatively strong results during the reporting period attributable to an increase in net interest income and improved credit quality in its loan portfolio. However, the company’s shares declined along with those of its peers in the banking sector due to more dovish monetary policy signals from the Fed in addition to concerns about slowing commercial real estate activity.
During the reporting period, we initiated holdings in regional bank Glacier Bancorp; IT services provider ExlService Holdings; specialized electronic systems components manufacturer OSI Systems; integrated facility solutions provider ABM Industries; exchange-traded funds (ETF) – focused asset manager WisdomTree Investments; and Ritchie Brothers Auctioneers, a Canadian company that is a global leader in industrial auctions. In addition to Progressive Waste Solutions and Heartland Payment Systems, as noted previously, we exited the Fund’s position in private-label packaged foods maker TreeHouse Foods.
* | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
2016 Semi-Annual Report
88
Aberdeen U.S. Small Cap Equity Fund (Unaudited) (concluded)
We expect the equity markets to maintain the level of volatility that we have seen thus far in 2016. We believe that investors will continue to focus on Fed action (or inaction), the outcome of a what has been a contentious U.S. presidential election, in addition to any impact from the macroeconomic environment beyond our borders. In short, we think that investor sentiment around these issues may dictate the performance of the markets more in the short term than actual underlying corporate fundamentals.
Stepping back and looking at our businesses, however, we feel that the underlying environment remains supportive, though it is not flourishing. Management teams of the companies that the Fund holds have reacted to the broader macroeconomic uncertainty, which has presented itself in fits and starts for the better part of a year. While capital investment has continued, albeit at a tepid pace, we have also seen companies more apt to borrow ahead of interest-rate increases, using the debt largely to fund mergers and acquisitions, and in rarer cases, share repurchase activity. We are constantly discussing the use of leverage with the management teams of the Fund’s company holdings in an effort to ensure that their borrowing does not lend risk to the companies’ balance sheets and that earnings per share (EPS) “accretion” (i.e., increasing the EPS) is not the driving motivation, but that every decision has a sound strategic rationale and improves the prospects for the business. Furthermore, we think there also remains uncertainty in actual supply/demand dynamics for commodity-related industries going forward, while more recently in the retail sector, companies are trying to move their business models to thrive – if not simply survive – in the new multi-channel retail landscape.
For the overall U.S. equity market, valuations are neither cheap nor expensive, but appear to be fair in the context of underlying earnings growth, in our opinion. Volatility presents challenges, but also opportunities for those that can look beyond a quarter or two towards the long-term prospects of businesses. Amid this landscape, we feel that selectivity – and, therefore, active management – are crucial.
Portfolio Management:
Aberdeen North American Equity Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Equity stocks of small-cap companies carry greater risk and more volatility than equity stocks of larger, more established companies.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
89
Aberdeen U.S. Small Cap Equity Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 5.63% | 10.84% | 11.09% | 6.36% | |||||||||||||
w/SC2 | (0.42% | ) | 4.46% | 9.79% | 5.73% | |||||||||||||
Class C | w/o SC | 5.24% | 10.08% | 10.33% | 5.63% | |||||||||||||
w/SC3 | 4.24% | 9.08% | 10.33% | 5.63% | ||||||||||||||
Class R4 | w/o SC | 5.53% | 10.62% | 10.86% | 6.13% | |||||||||||||
Institutional Service Class4 | w/o SC | 5.73% | 11.15% | 11.42% | 6.68% | |||||||||||||
Institutional Class4 | w/o SC | 5.78% | 11.20% | 11.46% | 6.69% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | The Fund changed its investment strategy effective February 29, 2016. Performance information for periods prior to February 29, 2016 does not reflect the current investment strategy. Returns prior to June 23, 2008 incorporate the performance of the predecessor fund (the “Predecessor Fund”). Prior to the change of the investment strategy of the Fund effective February 29, 2016, the Fund and the Predecessor Fund had similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
Semi-Annual Report 2016
90
Aberdeen U.S. Small Cap Equity Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen U.S. Small Cap Equity Fund, the Russell 2000® Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Russell 2000® Index measures performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and it represents approximately 8% of the U.S. market. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased barometer for the small-cap segment and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Common Stocks | 97.0% | |||
Repurchase Agreement | 2.3% | |||
Other assets in excess of liabilities | 0.7% | |||
100.0% |
The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 sub-industries. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Sectors | ||||
Financials | 19.4% | |||
Industrials | 18.2% | |||
Consumer Discretionary | 13.0% | |||
Information Technology | 12.1% | |||
Health Care | 11.2% | |||
Materials | 10.7% | |||
Consumer Staples | 8.3% | |||
Telecommunication Services | 2.5% | |||
Energy | 1.6% | |||
Other | 3.0% | |||
100.0% |
Top Holdings* | ||||
Multi-Color Corp. | 3.2% | |||
Emergent BioSolutions, Inc. | 2.7% | |||
G-III Apparel Group Ltd. | 2.6% | |||
Quaker Chemical Corp. | 2.6% | |||
PAREXEL International Corp. | 2.6% | |||
Canadian Western Bank | 2.6% | |||
Littelfuse, Inc. | 2.6% | |||
Gibraltar Industries, Inc. | 2.5% | |||
Shenandoah Telecommunications Co. | 2.5% | |||
Globus Medical, Inc., Class A | 2.4% | |||
Other | 73.7% | |||
100.0% |
Top Countries | ||||
United States | 95.7% | |||
Canada | 3.6% | |||
Other | 0.7% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Semi-Annual Report 2016
91
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen U.S. Small Cap Equity Fund
Shares or Principal Amount | Value | |||||||
COMMON STOCKS (97.0%) | ||||||||
CANADA (3.6%) | ||||||||
Financials (2.6%) | ||||||||
Canadian Western Bank | 732,987 | $ | 16,170,463 | |||||
Industrials (1.0%) | ||||||||
Ritchie Bros Auctioneers, Inc. | 212,702 | 6,102,421 | ||||||
22,272,884 | ||||||||
UNITED STATES (93.4%) | ||||||||
Consumer Discretionary (13.0%) | ||||||||
Core-Mark Holding Co., Inc. | 165,202 | 13,490,396 | ||||||
Culp, Inc. | 408,038 | 10,706,917 | ||||||
Drew Industries, Inc. | 130,287 | 8,446,506 | ||||||
G-III Apparel Group Ltd. (a) | 364,373 | 16,487,878 | ||||||
Hibbett Sports, Inc. (a) | 241,910 | 8,732,951 | ||||||
La Quinta Holdings, Inc. (a) | 710,186 | 9,069,075 | ||||||
Pool Corp. | 153,719 | 13,436,578 | ||||||
80,370,301 | ||||||||
Consumer Staples (8.3%) | ||||||||
Cal-Maine Foods, Inc. | 265,125 | 13,457,745 | ||||||
Casey’s General Stores, Inc. | 131,701 | 14,750,512 | ||||||
J&J Snack Foods Corp. | 121,350 | 12,272,125 | ||||||
WD-40 Co. | 105,063 | 10,747,945 | ||||||
51,228,327 | ||||||||
Energy (1.6%) | ||||||||
Forum Energy Technologies, Inc. (a) | 601,747 | 10,073,245 | ||||||
Financials (16.8%) | ||||||||
AMERISAFE, Inc. | 227,126 | 12,237,549 | ||||||
Bank of the Ozarks, Inc. | 321,264 | 13,268,203 | ||||||
Boston Private Financial Holdings, Inc. | 1,092,865 | 13,354,810 | ||||||
Glacier Bancorp, Inc. | 281,440 | 7,286,482 | ||||||
Healthcare Realty Trust, Inc., REIT | 336,678 | 10,194,610 | ||||||
MarketAxess Holdings, Inc. | 79,333 | 9,738,919 | ||||||
Sabra Health Care REIT, Inc. | 429,473 | 9,057,586 | ||||||
Univest Corp. of Pennsylvania | 434,322 | 8,573,516 | ||||||
WisdomTree Investments, Inc. | 538,651 | 5,865,909 | ||||||
WSFS Financial Corp. | 418,479 | 14,286,873 | ||||||
103,864,457 | ||||||||
Health Care (11.2%) | ||||||||
Emergent BioSolutions, Inc. (a) | 430,898 | 16,598,191 | ||||||
Globus Medical, Inc., Class A (a) | 611,079 | 15,301,418 | ||||||
PAREXEL International Corp. (a) | 266,219 | 16,265,981 | ||||||
Prestige Brands Holdings, Inc. (a) | 183,215 | 10,402,948 | ||||||
US Physical Therapy, Inc. | 221,695 | 11,053,713 | ||||||
69,622,251 | ||||||||
Industrials (17.2%) | ||||||||
ABM Industries, Inc. | 223,624 | 7,193,984 | ||||||
Actuant Corp., Class A | 419,355 | 11,200,972 | ||||||
Beacon Roofing Supply, Inc. (a) | 230,037 | 9,829,481 | ||||||
Curtiss-Wright Corp. | 175,179 | 13,415,208 | ||||||
Gibraltar Industries, Inc. (a) | 591,223 | 15,637,849 | ||||||
Multi-Color Corp. | 327,916 | 19,619,214 | ||||||
RBC Bearings, Inc. (a) | 207,824 | 15,233,499 | ||||||
US Ecology, Inc. | 325,272 | 14,646,998 | ||||||
106,777,205 | ||||||||
Information Technology (12.1%) | ||||||||
ExlService Holdings, Inc. (a) | 180,355 | 8,727,379 | ||||||
Fair Isaac Corp. | 131,663 | 14,049,759 | ||||||
FEI Co. | 169,761 | 15,112,124 | ||||||
Littelfuse, Inc. | 136,228 | 15,867,837 | ||||||
OSI Systems, Inc. (a) | 150,663 | 7,667,240 | ||||||
Syntel, Inc. (a) | 178,561 | 7,594,199 | ||||||
Teradyne, Inc. | 300,083 | 5,674,570 | ||||||
74,693,108 | ||||||||
Materials (10.7%) | ||||||||
Compass Minerals International, Inc. | 158,087 | 11,850,201 | ||||||
Kaiser Aluminum Corp. | 149,454 | 14,172,723 | ||||||
Quaker Chemical Corp. | 183,533 | 16,345,449 | ||||||
Sensient Technologies Corp. | 225,748 | 15,181,553 | ||||||
Silgan Holdings, Inc. | 172,696 | 8,762,595 | ||||||
66,312,521 | ||||||||
Telecommunication Services (2.5%) | ||||||||
Shenandoah Telecommunications Co. | 536,493 | 15,391,984 | ||||||
578,333,399 | ||||||||
Total Common Stocks | 600,606,283 | |||||||
REPURCHASE AGREEMENT (2.3%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $14,223,036, collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $14,509,275 | $ | 14,223,000 | 14,223,000 | |||||
Total Repurchase Agreement | 14,223,000 | |||||||
Total Investments | 614,829,283 | |||||||
Other assets in excess of liabilities—0.7% | 4,107,163 | |||||||
Net Assets—100.0% | $ | 618,936,446 |
(a) | Non-income producing security. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
92
Statements of Assets and Liabilities (Unaudited)
April 30, 2016
Aberdeen Asia-Pacific (ex-Japan) Equity Fund | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value | $ | 18,167,560 | $ | 2,979,574 | $ | 14,156,201 | $ | 7,189,643,758 | $ | 85,351,772 | ||||||||||
Repurchase agreements, at value | 467,000 | – | 395,000 | 138,713,000 | 11,699,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments | 18,634,560 | 2,979,574 | 14,551,201 | 7,328,356,758 | 97,050,772 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash | 227 | 85,514 | 995 | – | 45,210,379 | * | ||||||||||||||
Foreign currency, at value | 98,345 | 2,039 | 294,882 | 6,240,766 | – | |||||||||||||||
Cash at broker for China A shares | – | – | 1,279 | – | – | |||||||||||||||
Interest and dividends receivable | 82,950 | 9,777 | 46,597 | 15,302,945 | 80,519 | |||||||||||||||
Receivable for capital shares issued | – | – | 2,658 | 6,161,480 | 274,040 | |||||||||||||||
Receivable for investments sold | 111,129 | – | – | 1,810,717 | 397,299 | |||||||||||||||
Receivable from Adviser | – | 13,768 | 8,851 | 188,536 | 11,580 | |||||||||||||||
Tax reclaim receivable | – | – | – | 578,608 | – | |||||||||||||||
Prepaid expenses | 61,088 | 54,027 | 37,211 | 655,889 | 53,311 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 18,988,299 | 3,144,699 | 14,943,674 | 7,359,295,699 | 143,077,900 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | – | – | – | 2,573,692 | – | |||||||||||||||
Payable for investments purchased | 174,970 | 11,494 | – | 4,847,649 | – | |||||||||||||||
Payable for capital shares redeemed | 738,577 | – | 1,000 | 6,700,665 | 188,754 | |||||||||||||||
Payable for dividends on securities sold short | – | – | – | – | 61,873 | |||||||||||||||
Accrued foreign capital gains tax | 29,158 | – | – | 21,395,043 | – | |||||||||||||||
Securities sold short, at value | – | – | – | – | 44,619,181 | |||||||||||||||
Payable for brokers related expenses for securities sold short | – | – | – | – | 10,802 | |||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||
Investment advisory fees | 113,682 | 3,252 | 15,127 | 5,331,654 | 93,286 | |||||||||||||||
Custodian fees | 155,025 | 3,016 | 3,486 | 686,187 | 3,083 | |||||||||||||||
Sub-transfer agent and administrative service fees | 2,070 | 258 | 2,798 | 634,815 | 20,392 | |||||||||||||||
Transfer agent fees | 249,897 | 5,892 | 3,794 | 323,946 | 29,100 | |||||||||||||||
Administration fees | 1,233 | 200 | 802 | 473,925 | 6,489 | |||||||||||||||
Fund accounting fees | 33,419 | 2,535 | 2,526 | 247,517 | 5,475 | |||||||||||||||
Printing fees | 126,020 | 1,919 | 2,263 | 72,063 | 18,133 | |||||||||||||||
Legal fees | 5,540 | 67 | 386 | 192,312 | 1,077 | |||||||||||||||
Audit fees | 21,582 | 21,582 | 20,520 | 21,582 | 22,114 | |||||||||||||||
Distribution fees | 318 | 169 | 5,070 | 70,368 | 7,782 | |||||||||||||||
Other | 12,142 | 199 | 322 | 378,083 | 2,529 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 1,663,633 | 50,583 | 58,094 | 43,949,501 | 45,090,070 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 17,324,666 | $ | 3,094,116 | $ | 14,885,580 | $ | 7,315,346,198 | $ | 97,987,830 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cost: | ||||||||||||||||||||
Investments | $ | 20,403,629 | $ | 3,274,906 | $ | 17,592,966 | $ | 7,739,960,920 | $ | 72,490,964 | ||||||||||
Repurchase agreements | 467,000 | – | 395,000 | 138,713,000 | 11,699,000 | |||||||||||||||
Foreign currency | 98,345 | 2,045 | 290,208 | 6,213,479 | – | |||||||||||||||
Proceeds: | ||||||||||||||||||||
Securities sold short | $ | – | $ | – | $ | – | $ | – | $ | 42,774,656 | ||||||||||
Represented by: | ||||||||||||||||||||
Capital | $ | 222,577,043 | $ | 8,817,719 | $ | 29,061,903 | $ | 8,044,495,477 | $ | 85,845,266 | ||||||||||
Accumulated net investment income/(loss) | (450,870 | ) | (14,444 | ) | (80,162 | ) | 9,061,066 | (2,389,702 | ) | |||||||||||
Accumulated net realized gain/(loss) from investments and foreign currency transactions | (202,536,411 | ) | (5,413,866 | ) | (10,664,066 | ) | (166,649,722 | ) | 3,515,983 | |||||||||||
Net unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | (2,265,096 | ) | (295,293 | ) | (3,432,095 | ) | (571,560,623 | ) | 11,016,283 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 17,324,666 | $ | 3,094,116 | $ | 14,885,580 | $ | 7,315,346,198 | $ | 97,987,830 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Class A Shares | $ | 739,008 | $ | 773,807 | $ | 7,363,836 | $ | 169,742,949 | $ | 14,432,624 | ||||||||||
Class C Shares | 187,123 | 8,031 | 3,710,109 | 24,795,888 | 4,152,669 | |||||||||||||||
Class R Shares | 9,637 | 16,873 | 1,394,968 | 39,378,412 | 3,035,325 | |||||||||||||||
Institutional Service Class Shares | 3,923,343 | 101,540 | 775,286 | 392,428,398 | 736,948 | |||||||||||||||
Institutional Class Shares | 12,465,555 | 2,193,865 | 1,641,381 | 6,689,000,551 | 75,630,264 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 17,324,666 | $ | 3,094,116 | $ | 14,885,580 | $ | 7,315,346,198 | $ | 97,987,830 | ||||||||||
|
|
|
|
|
|
|
|
|
|
* | The cash amount reported for the Aberdeen Equity Long-Short Fund is restricted from investing as it represents the amount due to the prime broker relating to the open short positions at April 30, 2016. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
93
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen Asia-Pacific (ex-Japan) Equity Fund | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | ||||||||||||||||
Shares Outstanding (unlimited number of shares authorized): | ||||||||||||||||||||
Class A Shares | 76,824 | 96,116 | 426,926 | 13,578,351 | 1,629,889 | |||||||||||||||
Class C Shares | 19,567 | 1,011 | 224,273 | 2,003,607 | 837,359 | |||||||||||||||
Class R Shares | 1,005 | 2,089 | 82,232 | 3,169,583 | 365,347 | |||||||||||||||
Institutional Service Class Shares | 406,840 | 12,395 | 44,731 | 31,376,070 | 81,491 | |||||||||||||||
Institutional Class Shares | 1,292,582 | 271,245 | 94,708 | 534,220,584 | 8,217,230 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 1,796,818 | 382,856 | 872,870 | 584,348,195 | 11,131,316 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||||||||||||||||||
Class A Shares | $ | 9.62 | $ | 8.05 | $ | 17.25 | $ | 12.50 | $ | 8.85 | ||||||||||
Class C Shares (a) | $ | 9.56 | $ | 7.94 | $ | 16.54 | $ | 12.38 | $ | 4.96 | ||||||||||
Class R Shares | $ | 9.59 | $ | 8.08 | $ | 16.96 | $ | 12.42 | $ | 8.31 | ||||||||||
Institutional Service Class Shares | $ | 9.64 | $ | 8.19 | $ | 17.33 | $ | 12.51 | $ | 9.04 | ||||||||||
Institutional Class Shares | $ | 9.64 | $ | 8.09 | $ | 17.33 | $ | 12.52 | $ | 9.20 | ||||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||||||
Class A Shares | $ | 10.21 | $ | 8.54 | $ | 18.30 | $ | 13.26 | $ | 9.39 | ||||||||||
Maximum Sales Charge: | ||||||||||||||||||||
Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
94
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen European Equity Fund | Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | Aberdeen International Small Cap Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value | $ | 1,340,658 | $ | 90,840,419 | $ | 20,743,359 | $ | 475,911,154 | $ | 75,831,138 | ||||||||||
Repurchase agreements, at value | – | 3,268,000 | 716,000 | 19,312,000 | 1,375,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments | 1,340,658 | 94,108,419 | 21,459,359 | 495,223,154 | 77,206,138 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Foreign currency, at value | 387 | – | – | 1,735,090 | 136,408 | |||||||||||||||
Cash | 59,449 | 44,928 | 439 | 345,314 | 999 | |||||||||||||||
Interest and dividends receivable | 7,930 | 241,557 | 87,697 | 2,343,152 | 363,083 | |||||||||||||||
Receivable for capital shares issued | – | 8,800 | 3,033 | 191,091 | 2,613 | |||||||||||||||
Receivable from Adviser | 8,932 | 3,748 | 6,754 | 657 | 29,796 | |||||||||||||||
Tax reclaim receivable | 9,910 | 313,979 | 3,606 | 2,769,269 | 37,976 | |||||||||||||||
Prepaid expenses | 47,945 | 44,113 | 42,679 | 42,040 | 37,274 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 1,475,211 | 94,765,544 | 21,603,567 | 502,649,767 | 77,814,287 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Payable for investments purchased | 430 | 369,413 | – | 8,785,934 | 117,532 | |||||||||||||||
Payable for capital shares redeemed | – | 641,477 | – | 433,482 | 36,288 | |||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||
Investment advisory fees | 1,048 | 69,479 | 11,592 | 317,769 | 78,679 | |||||||||||||||
Sub-transfer agent and administrative service fees | 65 | 17,237 | 5,375 | 118,717 | 10,378 | |||||||||||||||
Transfer agent fees | 1,121 | 5,735 | 1,432 | 77,050 | 20,644 | |||||||||||||||
Audit fees | 20,520 | 20,520 | 20,521 | 20,521 | 21,582 | |||||||||||||||
Distribution fees | 114 | 13,861 | 4,040 | 31,965 | �� | 11,417 | ||||||||||||||
Administration fees | 97 | 6,176 | 1,325 | 31,777 | 3,097 | |||||||||||||||
Fund accounting fees | 2,136 | 4,747 | 2,439 | 23,037 | 5,151 | |||||||||||||||
Custodian fees | 3,868 | 2,217 | 852 | 18,822 | 6,902 | |||||||||||||||
Printing fees | 1,034 | 1,394 | 1,495 | 23,296 | 2,588 | |||||||||||||||
Legal fees | 30 | 2,264 | 464 | 14,869 | 1,241 | |||||||||||||||
Other | 37 | 1,753 | 366 | 27,403 | 2,507 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 30,500 | 1,156,273 | 49,901 | 9,924,642 | 318,006 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,444,711 | $ | 93,609,271 | $ | 21,553,666 | $ | 492,725,125 | $ | 77,496,281 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cost: | ||||||||||||||||||||
Investments | $ | 1,452,467 | $ | 91,143,124 | $ | 22,596,513 | $ | 486,540,005 | $ | 72,664,238 | ||||||||||
Repurchase agreements | – | 3,268,000 | 716,000 | 19,312,000 | 1,375,000 | |||||||||||||||
Foreign currency | 380 | – | – | 1,735,037 | 136,066 | |||||||||||||||
Represented by: | ||||||||||||||||||||
Capital | $ | 1,814,672 | $ | 126,721,562 | $ | 55,859,951 | $ | 642,509,451 | $ | 75,273,863 | ||||||||||
Accumulated net investment income/(loss) | 9,130 | 296,488 | 33,573 | 2,836,512 | (588,759 | ) | ||||||||||||||
Accumulated net realized loss from investments and foreign currency transactions | (267,045 | ) | (33,100,994 | ) | (32,487,013 | ) | (141,944,795 | ) | (354,585 | ) | ||||||||||
Net unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | (112,046 | ) | (307,785 | ) | (1,852,845 | ) | (10,676,043 | ) | 3,165,762 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,444,711 | $ | 93,609,271 | $ | 21,553,666 | $ | 492,725,125 | $ | 77,496,281 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Class A Shares | $ | 110,385 | $ | 56,335,335 | $ | 10,148,830 | $ | 80,232,694 | $ | 50,678,022 | ||||||||||
Class C Shares | 108,745 | 1,704,022 | 1,577,821 | 17,445,249 | 1,065,409 | |||||||||||||||
Class R Shares | 9,884 | 1,818,005 | 2,145,939 | 9,281,060 | 596,794 | |||||||||||||||
Institutional Service Class Shares | 10,038 | 1,066 | 826,329 | 107,779,812 | 356,877 | |||||||||||||||
Institutional Class Shares | 1,205,659 | 33,750,843 | 6,854,747 | 277,986,310 | 24,799,179 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 1,444,711 | $ | 93,609,271 | $ | 21,553,666 | $ | 492,725,125 | $ | 77,496,281 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
95
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen European Equity Fund | Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | Aberdeen International Small Cap Fund | ||||||||||||||||
Shares Outstanding (unlimited number of shares authorized): | ||||||||||||||||||||
Class A Shares | 11,912 | 4,716,114 | 852,659 | 6,546,463 | 2,037,902 | |||||||||||||||
Class C Shares | 11,851 | 150,688 | 139,759 | 1,513,538 | 46,453 | |||||||||||||||
Class R Shares | 1,067 | 158,006 | 183,376 | 792,811 | 25,125 | |||||||||||||||
Institutional Service Class Shares | 1,081 | 88 | 68,473 | 8,612,877 | 14,338 | |||||||||||||||
Institutional Class Shares | 129,959 | 2,819,557 | 567,249 | 22,128,168 | 996,515 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 155,870 | 7,844,453 | 1,811,516 | 39,593,857 | 3,120,333 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||||||||||||||||||
Class A Shares | $ | 9.27 | $ | 11.95 | (a) | $ | 11.90 | $ | 12.26 | (a) | $ | 24.87 | ||||||||
Class C Shares (b) | $ | 9.18 | $ | 11.31 | (a) | $ | 11.29 | $ | 11.53 | (a) | $ | 22.94 | (a) | |||||||
Class R Shares | $ | 9.26 | $ | 11.51 | (a) | $ | 11.70 | $ | 11.71 | (a) | $ | 23.75 | ||||||||
Institutional Service Class Shares (a) | $ | 9.29 | $ | 12.11 | (a) | $ | 12.07 | $ | 12.51 | $ | 24.89 | |||||||||
Institutional Class Shares | $ | 9.28 | $ | 11.97 | (a) | $ | 12.08 | $ | 12.56 | (a) | $ | 24.89 | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||||||
Class A Shares | $ | 9.84 | $ | 12.68 | $ | 12.63 | $ | 13.01 | $ | 26.39 | ||||||||||
Maximum Sales Charge: | ||||||||||||||||||||
Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % |
(a) | The NAV shown above differs from the traded NAV on April 30, 2016 due to financial statement rounding and/or financial statement adjustments. |
(b) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
96
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen Japanese Equities Fund | Aberdeen Latin American Equity Fund | Aberdeen U.S. Mid Cap Equity Fund | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value | $ | 924,586 | $ | 3,305,067 | $ | 1,055,414 | $ | 348,267,792 | $ | 600,606,283 | ||||||||||
Repurchase agreements, at value | – | – | – | 5,413,000 | 14,223,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments | 924,586 | 3,305,067 | 1,055,414 | 353,680,792 | 614,829,283 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cash | 5,589 | 77,820 | 27,893 | 503 | 441 | |||||||||||||||
Foreign currency, at value | 287 | 5,339 | – | – | – | |||||||||||||||
Receivable for capital shares issued | – | – | – | 20,687 | 4,851,048 | |||||||||||||||
Interest and dividends receivable | 6,084 | 13,575 | 66 | 216,342 | 243,923 | |||||||||||||||
Receivable from Adviser | 11,221 | 9,088 | 13,592 | 27,137 | – | |||||||||||||||
Tax reclaim receivable | 538 | – | – | – | – | |||||||||||||||
Prepaid expenses | 72,930 | 48,993 | – | 40,265 | 70,728 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 1,021,235 | 3,459,882 | 1,096,965 | 353,985,726 | 619,995,423 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Distributions payable | 390 | – | – | – | – | |||||||||||||||
Payable for capital shares redeemed | – | – | – | 271,302 | 400,559 | |||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||
Investment advisory fees | 534 | 2,933 | 665 | 218,197 | 393,297 | |||||||||||||||
Sub-transfer and administrative services fees | 246 | – | 265 | 45,968 | 111,983 | |||||||||||||||
Distribution fees | 14 | 30 | 16 | 53,679 | 68,379 | |||||||||||||||
Audit fees | 15,834 | 20,520 | 7,469 | 19,990 | 19,990 | |||||||||||||||
Administration fees | 66 | 213 | 71 | 23,274 | 35,884 | |||||||||||||||
Transfer agent fees | 1,721 | 1,109 | 1,667 | 24,106 | 7,772 | |||||||||||||||
Printing fees | 4 | 56 | 4 | 17,483 | 7,716 | |||||||||||||||
Legal fees | 988 | 75 | 14 | 5,098 | 8,822 | |||||||||||||||
Fund accounting fees | 880 | 88 | 16 | 11,248 | – | |||||||||||||||
Custodian fees | 2,562 | 94 | 59 | 2,124 | 2,113 | |||||||||||||||
Other | 834 | 61 | 7,579 | 14,646 | 2,462 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 24,073 | 25,179 | 17,825 | 707,115 | 1,058,977 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 997,162 | $ | 3,434,703 | $ | 1,079,140 | $ | 353,278,611 | $ | 618,936,446 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cost: | ||||||||||||||||||||
Investments | $ | 933,519 | $ | 4,532,749 | $ | 979,151 | $ | 302,338,894 | $ | 549,878,259 | ||||||||||
Repurchase agreements | – | – | – | 5,413,000 | 14,223,000 | |||||||||||||||
Foreign currency | 274 | 5,294 | – | – | – | |||||||||||||||
Represented by: | ||||||||||||||||||||
Capital | $ | 1,000,457 | $ | 5,290,759 | $ | 1,000,000 | $ | 294,004,537 | $ | 944,293,244 | ||||||||||
Accumulated net investment income/(loss) | 3,495 | 16,725 | (49 | ) | 187,390 | (102,043 | ) | |||||||||||||
Accumulated net realized gain/(loss) from investments and foreign currency transactions | 1,715 | (645,510 | ) | 2,926 | 13,157,786 | (375,982,779 | ) | |||||||||||||
Net unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | (8,505 | ) | (1,227,271 | ) | 76,263 | 45,928,898 | 50,728,024 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 997,162 | $ | 3,434,703 | $ | 1,079,140 | $ | 353,278,611 | $ | 618,936,446 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Class A Shares | $ | 9,965 | $ | 22,512 | $ | 10,784 | $ | 234,392,528 | $ | 122,763,948 | ||||||||||
Class C Shares | 9,934 | 29,669 | 10,774 | 6,389,364 | 52,965,656 | |||||||||||||||
Class R Shares | 9,957 | 6,569 | 10,781 | 239,993 | 10,896,542 | |||||||||||||||
Institutional Service Class Shares | 9,975 | 6,673 | 10,789 | 105,062,960 | 23,687,474 | |||||||||||||||
Institutional Class Shares | 957,331 | 3,369,280 | 1,036,012 | 7,193,766 | 408,622,826 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 997,162 | $ | 3,434,703 | $ | 1,079,140 | $ | 353,278,611 | $ | 618,936,446 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
97
Statements of Assets and Liabilities (Unaudited) (concluded)
April 30, 2016
Aberdeen Japanese Equities Fund | Aberdeen Latin American Equity Fund | Aberdeen U.S. Mid Cap Equity Fund | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||
Shares Outstanding (unlimited number of shares authorized): | ||||||||||||||||||||
Class A Shares | 1,001 | 3,538 | 1,000 | 19,581,228 | 4,365,726 | |||||||||||||||
Class C Shares | 1,000 | 4,681 | 1,000 | 590,272 | 2,145,047 | |||||||||||||||
Class R Shares | 1,001 | 1,033 | 1,000 | 21,053 | 416,746 | |||||||||||||||
Institutional Service Class Shares | 1,001 | 1,047 | 1,000 | 8,367,301 | 802,839 | |||||||||||||||
Institutional Class Shares | 96,044 | 528,743 | 96,000 | 572,164 | 13,862,992 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100,047 | 539,042 | 100,000 | 29,132,018 | 21,593,350 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||||||||||||||||||
Class A Shares | $ | 9.96 | $ | 6.36 | $ | 10.78 | $ | 11.97 | $ | 28.12 | ||||||||||
Class C Shares (a) | $ | 9.93 | $ | 6.34 | $ | 10.77 | $ | 10.82 | $ | 24.69 | ||||||||||
Class R Shares | $ | 9.95 | $ | 6.36 | $ | 10.78 | $ | 11.40 | $ | 26.15 | ||||||||||
Institutional Service Class Shares | $ | 9.97 | (b) | $ | 6.37 | $ | 10.79 | $ | 12.56 | $ | 29.50 | |||||||||
Institutional Class Shares | $ | 9.97 | $ | 6.37 | $ | 10.79 | $ | 12.57 | $ | 29.48 | ||||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||||||
Class A Shares | $ | 10.57 | $ | 6.75 | $ | 11.44 | $ | 12.70 | $ | 29.84 | ||||||||||
Maximum Sales Charge: | ||||||||||||||||||||
Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
(b) | The NAV shown above differs from the traded NAV on April 30, 2016 due to financial statement rounding and/or financial statement adjustments. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
98
Statements of Operations (Unaudited)
For the Six Month Period Ended April 30, 2016
Aberdeen Asia-Pacific | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend income | $ | 786,526 | $ | 46,981 | $ | 77,495 | $ | 71,254,525 | $ | 765,899 | ||||||||||
Interest income | 148 | 20 | 910 | 11,852 | 1,012 | |||||||||||||||
Foreign tax withholding | (23,087 | ) | (2,773 | ) | (1,708 | ) | (8,298,318 | ) | (3,843 | ) | ||||||||||
Other income | – | – | – | – | 2,197 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
763,587 | 44,228 | 76,697 | 62,968,059 | 765,265 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fees | 452,994 | 32,512 | 93,923 | 30,696,960 | 595,206 | |||||||||||||||
Administration fees | 36,240 | 2,001 | 6,011 | 2,728,619 | 41,406 | |||||||||||||||
Distribution fees Class A | 946 | 920 | 9,376 | 204,225 | 18,897 | |||||||||||||||
Distribution fees Class C | 926 | 79 | 19,634 | 122,137 | 25,752 | |||||||||||||||
Distribution fees Class R | 23 | 39 | 3,030 | 84,456 | 7,491 | |||||||||||||||
Sub-transfer agent and administrative service fees Class A | 43 | 627 | 1,765 | 117,373 | 7,635 | |||||||||||||||
Sub-transfer agent and administrative service fees Class C | 12 | 1 | 669 | 5,967 | 1,081 | |||||||||||||||
Sub-transfer agent and administrative service fees Class R | – | 7 | 1,181 | 35,984 | 2,335 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Service Class | 708 | 36 | 145 | 401,830 | 746 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Class | 1,234 | 35 | 218 | 432,068 | 11,262 | |||||||||||||||
Fund accounting fees | 27,118 | 3,569 | 3,841 | 363,573 | 6,580 | |||||||||||||||
Transfer agent fees | 195,887 | 20,195 | 22,235 | 1,705,983 | 67,284 | |||||||||||||||
Trustee fees | 4,967 | 183 | 517 | 237,044 | 3,613 | |||||||||||||||
Legal fees | 5,879 | 185 | 532 | 245,529 | 4,376 | |||||||||||||||
Printing fees | 26,441 | 3,321 | 5,666 | 145,825 | 15,390 | |||||||||||||||
Custodian fees | 141,545 | 17,524 | 9,548 | 2,164,962 | 7,366 | |||||||||||||||
Registration and filing fees | 30,739 | 25,517 | 26,198 | 85,411 | 31,134 | |||||||||||||||
Audit fees | 17,653 | 17,653 | 16,658 | 17,653 | 18,151 | |||||||||||||||
Dividend expense for securities sold short | – | – | – | – | 647,872 | |||||||||||||||
Broker related expenses for securities sold short | – | – | – | – | 162,412 | |||||||||||||||
Other | 58,245 | 11,031 | 4,139 | 493,112 | 11,877 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before reimbursed/waived expenses | 1,001,600 | 135,435 | 225,286 | 40,288,711 | 1,687,866 | |||||||||||||||
Interest expense (Note 11) | 3,592 | 45 | 5 | 39,331 | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total operating expenses before reimbursed/waived expenses | 1,005,192 | 135,480 | 225,291 | 40,328,042 | 1,687,866 | |||||||||||||||
Expenses reimbursed | (433,202 | ) | (96,213 | ) | (68,432 | ) | (1,825,859 | ) | (90,587 | ) | ||||||||||
Broker related expenses for securities sold short reduced by Adviser | – | – | – | – | (77,636 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 571,990 | 39,267 | 156,859 | 38,502,183 | 1,519,643 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income/(Loss) | 191,597 | 4,961 | (80,162 | ) | 24,465,876 | (754,378 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||||||||||||||||||
Realized gain/(loss) on investment transactions and securities sold short (including $812,526, $0, $0, $0 and $0 capital gains tax, respectively) | (56,581,070 | ) | (2,710,300 | ) | (419,641 | ) | (158,050,150 | ) | 3,830,117 | |||||||||||
Realized gain/(loss) on foreign currency transactions | (101,615 | ) | (3,525 | ) | (34,674 | ) | (872,975 | ) | 96 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | (56,682,685 | ) | (2,713,825 | ) | (454,315 | ) | (158,923,125 | ) | 3,830,213 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) on investment transactions (including $973,793, $0, $0, $3,701,245 and $0 change in deferred capital gains tax, respectively) | 37,214,105 | 2,216,340 | (218,690 | ) | 380,252,315 | (5,189,015 | ) | |||||||||||||
Net change in unrealized appreciation on securities sold short | – | – | – | – | 370,990 | |||||||||||||||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 371 | 710 | 18,686 | 401,389 | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | 37,214,476 | 2,217,050 | (200,004 | ) | 380,653,704 | (4,818,025 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized/unrealized gain/(loss) from investments and foreign currency transactions | (19,468,209 | ) | (496,775 | ) | (654,319 | ) | 221,730,579 | (987,812 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (19,276,612 | ) | $ | (491,814 | ) | $ | (734,481 | ) | $ | 246,196,455 | $ | (1,742,190 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
99
Statements of Operations (Unaudited) (continued)
For the Six Month Period Ended April 30, 2016
Aberdeen European Equity Fund | Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | Aberdeen International Small Cap Fund | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend income | $ | 21,870 | $ | 1,224,188 | $ | 321,915 | $ | 8,267,271 | $ | 757,326 | ||||||||||
Interest income | – | 366 | 71 | 385 | 165 | |||||||||||||||
Foreign tax withholding | (1,975 | ) | (97,030 | ) | (36,057 | ) | (791,897 | ) | (36,227 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
19,895 | 1,127,524 | 285,929 | 7,475,759 | 721,264 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fees | 6,083 | 399,518 | 65,375 | 2,025,620 | 506,648 | |||||||||||||||
Administration fees | 541 | 35,513 | 7,472 | 202,562 | 32,471 | |||||||||||||||
Distribution fees Class A | 143 | 68,399 | 10,946 | 90,934 | 61,658 | |||||||||||||||
Distribution fees Class C | 369 | 8,140 | 7,154 | 92,265 | 5,781 | |||||||||||||||
Distribution fees Class R | 23 | 4,045 | 5,416 | 28,023 | 1,432 | |||||||||||||||
Sub-transfer agent and administrative service fees Class A | 9 | 32,267 | 4,836 | 40,968 | 16,707 | |||||||||||||||
Sub-transfer agent and administrative service fees Class C | – | 421 | 369 | 4,346 | 268 | |||||||||||||||
Sub-transfer agent and administrative service fees Class R | – | 1,539 | 1,044 | 8,243 | 395 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Service Class | – | – | 110 | 113,062 | 786 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Class | 59 | 1,099 | 608 | 18,125 | 3,225 | |||||||||||||||
Fund accounting fees | 3,156 | 7,327 | 3,838 | 32,785 | 7,769 | |||||||||||||||
Transfer agent fees | 4,708 | 35,064 | 21,603 | 193,706 | 60,642 | |||||||||||||||
Trustee fees | 46 | 3,005 | 640 | 18,375 | 2,910 | |||||||||||||||
Legal fees | 49 | 3,124 | 672 | 18,957 | 3,451 | |||||||||||||||
Printing fees | 3,175 | 9,007 | 6,848 | 36,035 | 14,084 | |||||||||||||||
Custodian fees | 5,800 | 12,785 | 4,449 | 70,245 | 33,951 | |||||||||||||||
Registration and filing fees | 28,641 | 26,991 | 29,839 | 29,286 | 27,564 | |||||||||||||||
Audit fees | 16,658 | 16,658 | 16,659 | 16,658 | 17,653 | |||||||||||||||
Other | 1,590 | 8,974 | 4,133 | 43,561 | 13,477 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before reimbursed/waived expenses | 71,050 | 673,876 | 192,011 | 3,083,756 | 810,872 | |||||||||||||||
Interest expense (Note 11) | – | – | 34 | 2,517 | 1,858 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total operating expenses before reimbursed/waived expenses | 71,050 | 673,876 | 192,045 | 3,086,273 | 812,730 | |||||||||||||||
Expenses reimbursed | (63,071 | ) | (31,234 | ) | (54,167 | ) | (1,402 | ) | (196,455 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 7,979 | 642,642 | 137,878 | 3,084,871 | 616,275 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income | 11,916 | 484,882 | 148,051 | 4,390,888 | 104,989 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||||||||||||||||||
Realized gain/(loss) on investment transactions and securities sold short (including $0, $0, $0, $0 and $0 capital gains tax, respectively) | (44,203 | ) | (3,456,333 | ) | (2,153,551 | ) | (52,673,149 | ) | 379,265 | |||||||||||
Realized gain/(loss) on foreign currency transactions | (601 | ) | (3,658 | ) | (20,905 | ) | 18,112 | (31,950 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | (44,804 | ) | (3,459,991 | ) | (2,174,456 | ) | (52,655,037 | ) | 347,315 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation on investment transactions (including $0, $0, $0, $0 and $0 change in deferred capital gains tax, respectively) | 8,045 | 1,898,196 | 2,929,421 | 31,393,138 | 1,386,286 | |||||||||||||||
Net change in unrealized appreciation on translation of assets and liabilities denominated in foreign currencies | 432 | 15,122 | 900 | 134,235 | 13,579 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation from investments and translation of assets and liabilities denominated in foreign currencies | 8,477 | 1,913,318 | 2,930,321 | 31,527,373 | 1,399,865 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized/unrealized gain/(loss) from investments and foreign currency transactions | (36,327 | ) | (1,546,673 | ) | 755,865 | (21,127,664 | ) | 1,747,180 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (24,411 | ) | $ | (1,061,791 | ) | $ | 903,916 | $ | (16,736,776 | ) | $ | 1,852,169 | |||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
100
Statements of Operations (Unaudited) (concluded)
For the Six Month Period Ended April 30, 2016
Aberdeen Japanese Equities Fund(a) | Aberdeen Latin American Equity Fund | Aberdeen U.S. Mid Cap Equity Fund(b) | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividend income | $ | 9,357 | $ | 52,889 | $ | 1,760 | $ | 2,515,044 | $ | 3,406,744 | ||||||||||
Interest income | – | – | – | 293 | 1,929 | |||||||||||||||
Foreign tax withholding | (936 | ) | (5,381 | ) | – | (14,665 | ) | (37,795 | ) | |||||||||||
Other income | – | – | – | – | 55,603 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Investment Income | 8,421 | 47,508 | 1,760 | 2,500,672 | 3,426,481 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fees | 2,601 | 15,398 | 1,328 | 1,299,899 | 1,861,341 | |||||||||||||||
Administration fees | 320 | 1,120 | 142 | 138,656 | 178,675 | |||||||||||||||
Distribution fees Class A | 10 | 23 | 4 | 288,225 | 106,783 | |||||||||||||||
Distribution fees Class C | 40 | 56 | 18 | 31,990 | 207,988 | |||||||||||||||
Distribution fees Class R | 20 | 14 | 9 | 816 | 19,523 | |||||||||||||||
Sub-transfer agent and administrative service fees Class A | 2 | 6 | 2 | 35,881 | 38,372 | |||||||||||||||
Sub-transfer agent and administrative service fees Class C | 2 | 5 | 2 | 1,381 | 10,335 | |||||||||||||||
Sub-transfer agent and administrative service fees Class R | 2 | – | 2 | 59 | 2,953 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Service Class | 2 | – | 2 | 54,353 | 4,214 | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Class | 237 | – | 255 | 473 | 72,534 | |||||||||||||||
Fund accounting fees | 888 | 135 | 17 | 17,396 | 17,186 | |||||||||||||||
Transfer agent fees | 15,610 | 4,516 | 1,667 | 136,861 | 199,689 | |||||||||||||||
Trustee fees | 513 | 93 | 11 | 11,682 | 13,609 | |||||||||||||||
Legal fees | 1,096 | 96 | 14 | 13,271 | 13,915 | |||||||||||||||
Printing fees | 6,821 | 3,086 | 1,245 | 26,848 | 42,831 | |||||||||||||||
Custodian fees | 3,988 | 5,755 | 59 | 8,917 | 9,210 | |||||||||||||||
Registration and filing fees | 21,443 | 28,456 | 17,180 | 30,416 | 41,774 | |||||||||||||||
Audit fees | 15,834 | 16,658 | 7,470 | 16,162 | 16,162 | |||||||||||||||
Other | 2,496 | 1,558 | 19 | 23,161 | 20,839 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before reimbursed/waived expenses | 71,925 | 76,975 | 29,446 | 2,136,447 | 2,877,933 | |||||||||||||||
Interest expense (Note 11) | – | – | – | 201 | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total operating expenses before reimbursed/waived expenses | 71,925 | 76,975 | 29,446 | 2,136,648 | 2,877,933 | |||||||||||||||
Expenses reimbursed | (67,846 | ) | (58,679 | ) | (27,637 | ) | (165,244 | ) | – | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 4,079 | 18,296 | 1,809 | 1,971,404 | 2,877,933 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income/(Loss) | 4,342 | 29,212 | (49 | ) | 529,268 | 548,548 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||||||||||||||||||
Realized gain/(loss) on investment transactions and securities sold short (including $0, $0, $0, $0 and $0 capital gains tax, respectively) | 4,595 | (406,487 | ) | 2,926 | 36,371,365 | 14,805,641 | ||||||||||||||
Realized gain/(loss) on foreign currency transactions | (2,880 | ) | (1,550 | ) | – | 13,780 | (16,780 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | 1,715 | (408,037 | ) | 2,926 | 36,385,145 | 14,788,861 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) on investment transactions (including $0, $0 and $0 change in deferred capital gains tax, respectively) | (8,933 | ) | 906,869 | 76,263 | (34,136,490 | ) | 16,531,429 | |||||||||||||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | 428 | 625 | – | (122 | ) | 67 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies | (8,505 | ) | 907,494 | 76,263 | (34,136,612 | ) | 16,531,496 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized/unrealized gain/(loss) from investments and foreign currency transactions | (6,790 | ) | 499,457 | 79,189 | 2,248,533 | 31,320,357 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (2,448 | ) | $ | 528,669 | $ | 79,140 | $ | 2,777,801 | $ | 31,868,905 | |||||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period from November 30, 2015 (commencement of operations) through April 30, 2016. |
(b) | For the period from February 29, 2016 (commencement of operations) through April 30, 2016. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
101
Statements of Changes in Net Assets
Aberdeen Asia-Pacific (ex-Japan) Equity Fund | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income/(loss) | $ | 191,597 | $ | 21,867,293 | $ | 4,961 | $ | 411,287 | $ | (80,162 | ) | $ | 271,056 | |||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | (56,682,685 | ) | (144,368,434 | ) | (2,713,825 | ) | (2,529,032 | ) | (454,315 | ) | 1,180,078 | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 37,214,476 | (80,508,238 | ) | 2,217,050 | (2,615,349 | ) | (200,004 | ) | (3,474,579 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | (19,276,612 | ) | (203,009,379 | ) | (491,814 | ) | (4,733,094 | ) | (734,481 | ) | (2,023,445 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (16,922 | ) | (25,625 | ) | (5,471 | ) | (16,674 | ) | – | (172,726 | ) | |||||||||||||
Class C | (3,733 | ) | (7,296 | ) | (183 | ) | (450 | ) | – | (69,035 | ) | |||||||||||||
Class R | (202 | ) | (271 | ) | (103 | ) | (254 | ) | – | (19,117 | ) | |||||||||||||
Institutional Service Class | (85,963 | ) | (128,144 | ) | (971 | ) | (2,498 | ) | – | (20,749 | ) | |||||||||||||
Institutional Class | (1,884,305 | ) | (22,698,545 | ) | (54,146 | ) | (374,854 | ) | – | (42,982 | ) | |||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | – | (16,504 | ) | – | (27,353 | ) | – | – | ||||||||||||||||
Class C | – | (4,740 | ) | – | (1,401 | ) | – | – | ||||||||||||||||
Class R | – | (186 | ) | – | (278 | ) | – | – | ||||||||||||||||
Institutional Service Class | – | (66,146 | ) | – | (1,216 | ) | – | – | ||||||||||||||||
Institutional Class | – | (17,386,145 | ) | – | (634,599 | ) | – | – | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (1,991,125 | ) | (40,333,602 | ) | (60,874 | ) | (1,059,577 | ) | – | (324,609 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | (229,705,647 | ) | (563,771,354 | ) | (4,429,333 | ) | (17,104,512 | ) | (1,233,936 | ) | (11,163,177 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (250,973,384 | ) | (807,114,335 | ) | (4,982,021 | ) | (22,897,183 | ) | (1,968,417 | ) | (13,511,231 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of six months | 268,298,050 | 1,075,412,385 | 8,076,137 | 30,973,320 | 16,853,997 | 30,365,228 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of six months | $ | 17,324,666 | $ | 268,298,050 | $ | 3,094,116 | $ | 8,076,137 | $ | 14,885,580 | $ | 16,853,997 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of six months | $ | (450,870 | ) | $ | 1,348,658 | $ | (14,444 | ) | $ | 41,469 | $ | (80,162 | ) | $ | – | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
102
Statements of Changes in Net Assets (continued)
Aberdeen Asia-Pacific (ex-Japan) Equity Fund | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 23,845 | $ | 767,550 | $ | 14,289 | $ | 69,375 | $ | 478,285 | $ | 1,032,710 | ||||||||||||
Dividends reinvested | 16,568 | 40,887 | 3,356 | 29,995 | – | 127,067 | ||||||||||||||||||
Cost of shares redeemed(a) | (85,990 | ) | (982,791 | ) | (17,950 | ) | (440,790 | ) | (969,757 | ) | (11,126,688 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (45,577 | ) | (174,354 | ) | (305 | ) | (341,420 | ) | (491,472 | ) | (9,966,911 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | – | 229,595 | – | – | 9,589 | 275,384 | ||||||||||||||||||
Dividends reinvested | 3,733 | 10,842 | 183 | 1,851 | – | 36,469 | ||||||||||||||||||
Cost of shares redeemed(a) | (87,006 | ) | (176,618 | ) | (18,919 | ) | (22,590 | ) | (780,815 | ) | (1,029,923 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | (83,273 | ) | 63,819 | (18,736 | ) | (20,739 | ) | (771,226 | ) | (718,070 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Proceeds from shares issued | – | – | 2,001 | 20,238 | 454,755 | 825,302 | ||||||||||||||||||
Dividends reinvested | 202 | 457 | 103 | 532 | – | 15,504 | ||||||||||||||||||
Cost of shares redeemed(a) | – | – | (3,363 | ) | (11,117 | ) | (309,162 | ) | (889,705 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | 202 | 457 | (1,259 | ) | 9,653 | 145,593 | (48,899 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 102,628 | 2,103,196 | 2,507 | 95,400 | 934 | 22,518 | ||||||||||||||||||
Dividends reinvested | 39,664 | 121,039 | 971 | 3,714 | – | 20,390 | ||||||||||||||||||
Cost of shares redeemed(a) | (69,089 | ) | (1,282,946 | ) | (20,634 | ) | (11,338 | ) | (19,101 | ) | (873,767 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | 73,203 | 941,289 | (17,156 | ) | 87,776 | (18,167 | ) | (830,859 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 4,041,960 | 845,931,013 | 1,079,377 | 2,427,157 | 149,921 | 1,750,645 | ||||||||||||||||||
Dividends reinvested | 1,258,158 | 13,214,750 | 10,594 | 80,213 | – | 41,438 | ||||||||||||||||||
Cost of shares redeemed(a) | (234,950,320 | ) | (1,423,748,328 | ) | (5,481,848 | ) | (19,347,152 | ) | (248,585 | ) | (1,390,521 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | (229,650,202 | ) | (564,602,565 | ) | (4,391,877 | ) | (16,839,782 | ) | (98,664 | ) | 401,562 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | (229,705,647 | ) | $ | (563,771,354 | ) | $ | (4,429,333 | ) | $ | (17,104,512 | ) | $ | (1,233,936 | ) | $ | (11,163,177 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
103
Statements of Changes in Net Assets (continued)
Aberdeen Asia-Pacific (ex-Japan) Equity Fund | Aberdeen Asia-Pacific Smaller Companies Fund | Aberdeen China Opportunities Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 2,580 | 64,113 | 1,802 | 7,727 | 27,552 | 52,192 | ||||||||||||||||||
Reinvested | 1,805 | 3,838 | 443 | 3,344 | – | 7,040 | ||||||||||||||||||
Redeemed | (8,721 | ) | (83,911 | ) | (2,331 | ) | (47,280 | ) | (58,937 | ) | (563,244 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (4,336 | ) | (15,960 | ) | (86 | ) | (36,209 | ) | (31,385 | ) | (504,012 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | – | 19,471 | – | – | 596 | 14,324 | ||||||||||||||||||
Reinvested | 407 | 1,030 | 24 | 207 | – | 2,149 | ||||||||||||||||||
Redeemed | (8,821 | ) | (16,462 | ) | (2,623 | ) | (2,735 | ) | (49,220 | ) | (54,485 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | (8,414 | ) | 4,039 | (2,599 | ) | (2,528 | ) | (48,624 | ) | (38,012 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Issued | – | – | 256 | 2,238 | 27,493 | 42,152 | ||||||||||||||||||
Reinvested | 22 | 44 | 14 | 60 | – | 891 | ||||||||||||||||||
Redeemed | – | – | (439 | ) | (1,370 | ) | (18,408 | ) | (44,953 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | 22 | 44 | (169 | ) | 928 | 9,085 | (1,910 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | 10,513 | 176,560 | 326 | 10,342 | 55 | 1,123 | ||||||||||||||||||
Reinvested | 4,311 | 11,299 | 126 | 420 | – | 1,111 | ||||||||||||||||||
Redeemed | (7,258 | ) | (115,076 | ) | (2,784 | ) | (1,382 | ) | (1,146 | ) | (44,092 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | 7,566 | 72,783 | (2,332 | ) | 9,380 | (1,091 | ) | (41,858 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 431,898 | 72,164,872 | 148,321 | 260,450 | 9,151 | 89,738 | ||||||||||||||||||
Reinvested | 136,608 | 1,205,448 | 1,392 | 8,907 | – | 2,264 | ||||||||||||||||||
Redeemed | (25,408,934 | ) | (135,560,388 | ) | (758,934 | ) | (2,289,722 | ) | (14,696 | ) | (70,831 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | (24,840,428 | ) | (62,190,068 | ) | (609,221 | ) | (2,020,365 | ) | (5,545 | ) | 21,171 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | (24,845,590 | ) | (62,129,162 | ) | (614,407 | ) | (2,048,794 | ) | (77,560 | ) | (564,621 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
104
Statements of Changes in Net Assets (continued)
Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | Aberdeen European Equity Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income/(loss) | $ | 24,465,876 | $ | 104,462,036 | $ | (754,378 | ) | $ | (2,282,850 | ) | $ | 11,916 | $ | 107,236 | ||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | (158,923,125 | ) | 71,504,332 | 3,830,213 | 28,680,799 | (44,804 | ) | (212,758 | ) | |||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 380,653,704 | (1,618,944,253 | ) | (4,818,025 | ) | (21,714,443 | ) | 8,477 | (105,520 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | 246,196,455 | (1,442,977,885 | ) | (1,742,190 | ) | 4,683,506 | (24,411 | ) | (211,042 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (41,210 | ) | (2,645,889 | ) | – | – | (1,219 | ) | (4,376 | ) | ||||||||||||||
Class C | – | (163,090 | ) | – | – | (639 | ) | (119 | ) | |||||||||||||||
Class R | – | (246,400 | ) | – | – | (85 | ) | (155 | ) | |||||||||||||||
Institutional Service Class | (223,421 | ) | (5,932,794 | ) | – | – | (106 | ) | (198 | ) | ||||||||||||||
Institutional Class | (9,182,602 | ) | (107,175,841 | ) | – | – | (12,720 | ) | (105,210 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | (1,899,998 | ) | (10,017,204 | ) | (2,108,773 | ) | (4,787,502 | ) | – | (4,198 | ) | |||||||||||||
Class C | (291,887 | ) | (1,314,333 | ) | (1,068,641 | ) | (2,468,282 | ) | – | (116 | ) | |||||||||||||
Class R | (376,083 | ) | (990,879 | ) | (422,735 | ) | (595,930 | ) | – | (117 | ) | |||||||||||||
Institutional Service Class | (4,386,207 | ) | (6,924,119 | ) | (78,807 | ) | (196,312 | ) | – | (117 | ) | |||||||||||||
Institutional Class | (72,844,239 | ) | (267,561,188 | ) | (11,086,196 | ) | (42,575,701 | ) | – | (63,242 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (89,245,647 | ) | (402,971,737 | ) | (14,765,152 | ) | (50,623,727 | ) | (14,769 | ) | (177,848 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | (470,975,870 | ) | (567,021,908 | ) | (6,732,364 | ) | (182,307,148 | ) | 81,674 | (4,357,667 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (314,025,062 | ) | (2,412,971,530 | ) | (23,239,706 | ) | (228,247,369 | ) | 42,494 | (4,746,557 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of six months | 7,629,371,260 | 10,042,342,790 | 121,227,536 | 349,474,905 | 1,402,217 | 6,148,774 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of six months | $ | 7,315,346,198 | $ | 7,629,371,260 | $ | 97,987,830 | $ | 121,227,536 | $ | 1,444,711 | $ | 1,402,217 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of six months | $ | 9,061,066 | $ | (5,957,577 | ) | $ | (2,389,702 | ) | $ | (1,635,324 | ) | $ | 9,130 | $ | 11,983 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
105
Statements of Changes in Net Assets (continued)
Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | Aberdeen European Equity Fund | ||||||||||||||||||||||
Six Months Ended (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 27,384,568 | $ | 74,844,365 | $ | 1,736,827 | $ | 5,152,033 | $ | 1,932 | $ | 75,431 | ||||||||||||
Dividends reinvested | 1,571,397 | 10,269,358 | 1,729,534 | 3,575,942 | 1,219 | 8,574 | ||||||||||||||||||
Cost of shares redeemed(a) | (54,290,191 | ) | (176,166,541 | ) | (3,566,085 | ) | (17,666,912 | ) | (24,993 | ) | (321,887 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (25,334,226 | ) | (91,052,818 | ) | (99,724 | ) | (8,938,937 | ) | (21,842 | ) | (237,882 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 2,694,430 | 9,165,355 | 541,402 | 3,450,983 | 96,233 | – | ||||||||||||||||||
Dividends reinvested | 187,431 | 979,311 | 555,252 | 1,160,512 | 639 | 235 | ||||||||||||||||||
Cost of shares redeemed(a) | (8,975,182 | ) | (16,095,683 | ) | (3,217,361 | ) | (4,848,113 | ) | (2,575 | ) | – | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | (6,093,321 | ) | (5,951,017 | ) | (2,120,707 | ) | (236,618 | ) | 94,297 | 235 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 7,198,749 | 15,328,585 | 300,737 | 749,645 | – | – | ||||||||||||||||||
Dividends reinvested | 332,795 | 1,042,782 | 422,735 | 595,930 | 85 | 272 | ||||||||||||||||||
Cost of shares redeemed(a) | (3,096,269 | ) | (7,757,428 | ) | (420,920 | ) | (1,004,594 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | 4,435,275 | 8,613,939 | 302,552 | 340,981 | 85 | 272 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 27,367,921 | 406,467,287 | 181,379 | 170,222 | – | – | ||||||||||||||||||
Dividends reinvested | 4,609,403 | 12,851,158 | 78,807 | 196,312 | 105 | 315 | ||||||||||||||||||
Cost of shares redeemed(a) | (58,413,591 | ) | (145,024,672 | ) | (225,372 | ) | (1,263,015 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | (26,436,267 | ) | 274,293,773 | 34,814 | (896,481 | ) | 105 | 315 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 1,367,570,867 | 2,387,051,334 | 18,544,438 | 80,651,606 | – | – | ||||||||||||||||||
Dividends reinvested | 64,842,955 | 286,469,136 | 10,198,090 | 39,384,673 | 12,719 | 168,452 | ||||||||||||||||||
Cost of shares redeemed(a) | (1,849,961,153 | ) | (3,426,446,255 | ) | (33,591,827 | ) | (292,612,372 | ) | (3,690 | ) | (4,289,059 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | (417,547,331 | ) | (752,925,785 | ) | (4,849,299 | ) | (172,576,093 | ) | 9,029 | (4,120,607 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | (470,975,870 | ) | $ | (567,021,908 | ) | $ | (6,732,364 | ) | $ | (182,307,148 | ) | $ | 81,674 | $ | (4,357,667 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
106
Statements of Changes in Net Assets (continued)
Aberdeen Emerging Markets Fund | Aberdeen Equity Long-Short Fund | Aberdeen European Equity Fund | ||||||||||||||||||||||
Six Months Ended (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 2,407,495 | 5,498,237 | 197,134 | 492,145 | 209 | 7,465 | ||||||||||||||||||
Reinvested | 138,817 | 773,178 | 198,569 | 349,213 | 138 | 849 | ||||||||||||||||||
Redeemed | (4,677,356 | ) | (13,504,085 | ) | (403,544 | ) | (1,680,205 | ) | (2,970 | ) | (31,620 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (2,131,044 | ) | (7,232,670 | ) | (7,841 | ) | (838,847 | ) | (2,623 | ) | (23,306 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | 230,191 | 675,466 | 107,928 | 537,603 | 11,005 | – | ||||||||||||||||||
Reinvested | 16,690 | 74,134 | 113,548 | 181,898 | 73 | 24 | ||||||||||||||||||
Redeemed | (785,043 | ) | (1,254,631 | ) | (557,202 | ) | (752,203 | ) | (277 | ) | – | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | (538,162 | ) | (505,031 | ) | (335,726 | ) | (32,702 | ) | 10,801 | 24 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Issued | 621,821 | 1,147,004 | 35,749 | 76,137 | – | – | ||||||||||||||||||
Reinvested | 29,556 | 79,187 | 51,679 | 61,184 | 9 | 27 | ||||||||||||||||||
Redeemed | (266,507 | ) | (580,271 | ) | (50,142 | ) | (101,236 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | 384,870 | 645,920 | 37,286 | 36,085 | 9 | 27 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | 2,565,845 | 29,133,387 | 20,095 | 15,778 | – | – | ||||||||||||||||||
Reinvested | 407,191 | 979,266 | 8,864 | 18,840 | 13 | 30 | ||||||||||||||||||
Redeemed | (5,089,685 | ) | (12,389,902 | ) | (22,696 | ) | (109,805 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | (2,116,649 | ) | 17,722,751 | 6,263 | (75,187 | ) | 13 | 30 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 119,985,543 | 178,994,441 | 1,985,452 | 7,543,322 | – | – | ||||||||||||||||||
Reinvested | 5,728,176 | 21,631,046 | 1,128,107 | 3,733,144 | 1,442 | 16,578 | ||||||||||||||||||
Redeemed | (160,593,103 | ) | (261,820,771 | ) | (3,628,495 | ) | (26,720,883 | ) | (418 | ) | (447,157 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | (34,879,384 | ) | (61,195,284 | ) | (514,936 | ) | (15,444,417 | ) | 1,024 | (430,579 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | (39,280,369 | ) | (50,564,314 | ) | (814,954 | ) | (16,355,068 | ) | 9,224 | (453,804 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
107
Statements of Changes in Net Assets (continued)
Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 484,882 | $ | 1,439,376 | $ | 148,051 | $ | 299,856 | $ | 4,390,888 | $ | 15,537,904 | ||||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | (3,459,991 | ) | 6,772,402 | (2,174,456 | ) | (1,237,359 | ) | (52,655,037 | ) | (2,601,242 | ) | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 1,913,318 | (19,946,667 | ) | 2,930,321 | (3,484,406 | ) | 31,527,373 | (138,532,873 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | (1,061,791 | ) | (11,734,889 | ) | 903,916 | (4,421,909 | ) | (16,736,776 | ) | (125,596,211 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (148,771 | ) | (947,673 | ) | (33,870 | ) | (277,478 | ) | (256,405 | ) | (2,318,371 | ) | ||||||||||||
Class C | (1,764 | ) | (19,782 | ) | (2,953 | ) | (39,537 | ) | (23,654 | ) | (436,483 | ) | ||||||||||||
Class R | (2,908 | ) | (23,246 | ) | (7,927 | ) | (60,806 | ) | (31,721 | ) | (272,867 | ) | ||||||||||||
Institutional Service Class | (4 | ) | (21,079 | ) | (1,266 | ) | (15,913 | ) | (508,720 | ) | (3,874,530 | ) | ||||||||||||
Institutional Class | (112,925 | ) | (624,752 | ) | (25,248 | ) | (32,853 | ) | (1,114,495 | ) | (10,748,446 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (266,372 | ) | (1,636,532 | ) | (71,264 | ) | (426,587 | ) | (1,934,995 | ) | (17,650,697 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | 2,342,593 | (51,797,861 | ) | 1,750,891 | 641,702 | (106,630,661 | ) | (120,887,487 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | 1,014,430 | (65,169,282 | ) | 2,583,543 | (4,206,794 | ) | (125,302,432 | ) | (264,134,395 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of six months | 92,594,841 | 157,764,123 | 18,970,123 | 23,176,917 | 618,027,557 | 882,161,952 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of six months | $ | 93,609,271 | $ | 92,594,841 | $ | 21,553,666 | $ | 18,970,123 | $ | 492,725,125 | $ | 618,027,557 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of six months | $ | 296,488 | $ | 77,978 | $ | 33,573 | $ | (43,214 | ) | $ | 2,836,512 | $ | 380,619 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
108
Statements of Changes in Net Assets (continued)
Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 3,377,294 | $ | 8,666,402 | $ | 2,379,617 | $ | 1,958,091 | $ | 23,120,266 | $ | 18,990,820 | ||||||||||||
Proceeds of shares issued in connection with fund merger | – | 4,987,280 | – | – | – | – | ||||||||||||||||||
Dividends reinvested | 142,616 | 906,975 | 25,237 | 228,343 | 197,190 | 1,711,458 | ||||||||||||||||||
Cost of shares redeemed(a) | (4,970,813 | ) | (20,706,517 | ) | (1,462,078 | ) | (5,101,063 | ) | (31,358,020 | ) | (56,569,720 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (1,450,903 | ) | (6,145,860 | ) | 942,776 | (2,914,629 | ) | (8,040,564 | ) | (35,867,442 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 210,326 | 287,504 | 224,115 | 291,092 | 551,304 | 4,394,274 | ||||||||||||||||||
Dividends reinvested | 903 | 10,488 | 1,765 | 24,198 | 15,675 | 275,266 | ||||||||||||||||||
Cost of shares redeemed(a) | (205,345 | ) | (2,416,066 | ) | (327,917 | ) | (852,044 | ) | (5,400,163 | ) | (12,204,447 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | 5,884 | (2,118,074 | ) | (102,037 | ) | (536,754 | ) | (4,833,184 | ) | (7,534,907 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 621,478 | 474,767 | 424,511 | 1,230,825 | 3,132,182 | 6,856,626 | ||||||||||||||||||
Dividends reinvested | 1,954 | 16,050 | 2,054 | 17,227 | 25,349 | 206,862 | ||||||||||||||||||
Cost of shares redeemed(a) | (253,848 | ) | (769,993 | ) | (777,682 | ) | (1,150,723 | ) | (7,347,295 | ) | (7,366,078 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | 369,584 | (279,176 | ) | (351,117 | ) | 97,329 | (4,189,764 | ) | (302,590 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | – | 5,084,974 | 842,070 | 71,956 | 6,580,866 | 43,974,126 | ||||||||||||||||||
Dividends reinvested | 4 | 21,079 | 1,157 | 15,104 | 494,160 | 3,785,630 | ||||||||||||||||||
Cost of shares redeemed(a) | – | (4,903,350 | ) | (410,925 | ) | (277,980 | ) | (50,387,793 | ) | (45,841,932 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | 4 | 202,703 | 432,302 | (190,920 | ) | (43,312,767 | ) | 1,917,824 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 5,476,658 | 11,253,800 | 1,394,780 | 5,298,335 | 30,386,479 | 93,817,549 | ||||||||||||||||||
Proceeds of shares issued in connection with fund merger | – | 1,191,494 | – | – | – | – | ||||||||||||||||||
Dividends reinvested | 110,581 | 610,081 | 23,320 | 13,437 | 1,096,585 | 10,464,649 | ||||||||||||||||||
Cost of shares redeemed(a) | (2,169,215 | ) | (56,512,829 | ) | (589,133 | ) | (1,125,096 | ) | (77,737,446 | ) | (183,382,570 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | 3,418,024 | (43,457,454 | ) | 828,967 | 4,186,676 | (46,254,382 | ) | (79,100,372 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | 2,342,593 | $ | (51,797,861 | ) | $ | 1,750,891 | $ | 641,702 | $ | (106,630,661 | ) | $ | (120,887,487 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
109
Statements of Changes in Net Assets (continued)
Aberdeen Global Equity Fund | Aberdeen Global Natural Resources Fund | Aberdeen International Equity Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 299,446 | 665,273 | 221,041 | 145,257 | 1,885,144 | 1,367,259 | ||||||||||||||||||
Issued in connection with fund merger | – | 364,123 | – | – | – | – | ||||||||||||||||||
Reinvested | 12,599 | 69,648 | 2,499 | 17,605 | 17,014 | 123,855 | ||||||||||||||||||
Redeemed | (430,403 | ) | (1,559,538 | ) | (138,025 | ) | (376,475 | ) | (2,697,661 | ) | (4,113,969 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (118,358 | ) | (460,494 | ) | 85,515 | (213,613 | ) | (795,503 | ) | (2,622,855 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | 19,349 | 23,121 | 23,254 | 22,873 | 49,126 | 327,993 | ||||||||||||||||||
Reinvested | 84 | 841 | 184 | 1,966 | 1,435 | 21,045 | ||||||||||||||||||
Redeemed | (18,828 | ) | (191,142 | ) | (33,469 | ) | (66,556 | ) | (487,928 | ) | (945,212 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | 605 | (167,180 | ) | (10,031 | ) | (41,717 | ) | (437,367 | ) | (596,174 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Issued | 56,471 | 37,233 | 41,841 | 96,199 | 292,945 | 530,191 | ||||||||||||||||||
Reinvested | 179 | 1,272 | 207 | 1,353 | 2,288 | 15,714 | ||||||||||||||||||
Redeemed | (23,026 | ) | (62,922 | ) | (76,900 | ) | (86,835 | ) | (680,314 | ) | (559,488 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | 33,624 | (24,417 | ) | (34,852 | ) | 10,717 | (385,081 | ) | (13,583 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | – | 370,670 | 78,780 | 5,166 | 556,406 | 3,050,696 | ||||||||||||||||||
Reinvested | – | 1,566 | 113 | 1,136 | 41,807 | 268,876 | ||||||||||||||||||
Redeemed | – | (372,305 | ) | (37,157 | ) | (22,756 | ) | (4,235,551 | ) | (3,285,914 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | – | (69 | ) | 41,736 | (16,454 | ) | (3,637,338 | ) | 33,658 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 476,049 | 872,856 | 131,167 | 475,428 | 2,548,354 | 6,554,392 | ||||||||||||||||||
Issued in connection with fund merger | – | 86,882 | – | – | – | – | ||||||||||||||||||
Reinvested | 9,760 | 46,737 | 2,277 | 1,005 | 92,461 | 740,959 | ||||||||||||||||||
Redeemed | (188,204 | ) | (4,146,443 | ) | (54,622 | ) | (85,949 | ) | (6,450,188 | ) | (13,988,851 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | 297,605 | (3,139,968 | ) | 78,822 | 390,484 | (3,809,373 | ) | (6,693,500 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | 213,476 | (3,792,128 | ) | 161,190 | 129,417 | (9,064,662 | ) | (9,892,454 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
110
Statements of Changes in Net Assets (continued)
Aberdeen International Small Cap Fund | Aberdeen Japanese Equities Fund | Aberdeen Latin American Equity Fund | ||||||||||||||||||
Six Months Ended (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||
Operations: | ||||||||||||||||||||
Net investment income | $ | 104,989 | $ | 2,340,000 | $ | 4,342 | $ | 29,212 | $ | 51,766 | ||||||||||
Net realized gain/(loss) from investments and foreign currency transactions | 347,315 | 11,965,259 | 1,715 | (408,037 | ) | (232,269 | ) | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 1,399,865 | (17,384,539 | ) | (8,505 | ) | 907,494 | (1,086,240 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Changes in net assets resulting from operations | 1,852,169 | (3,079,280 | ) | (2,448 | ) | 528,669 | (1,266,743 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Class A | (228,225 | ) | (1,066,895 | ) | (6 | ) | (101 | ) | (435 | ) | ||||||||||
Class C | (4,732 | ) | (21,328 | ) | – | (20 | ) | (82 | ) | |||||||||||
Class R | (2,339 | ) | (11,468 | ) | (5 | ) | (24 | ) | (77 | ) | ||||||||||
Institutional Service Class | (3,609 | ) | (36,391 | ) | (9 | ) | (40 | ) | (105 | ) | ||||||||||
Institutional Class | (172,512 | ) | (2,096,848 | ) | (827 | ) | (19,956 | ) | (52,479 | ) | ||||||||||
Net realized gains: | ||||||||||||||||||||
Class A | (4,916,418 | ) | (3,337,012 | ) | – | – | – | |||||||||||||
Class C | (133,270 | ) | (90,199 | ) | – | – | – | |||||||||||||
Class R | (57,580 | ) | (45,117 | ) | – | – | – | |||||||||||||
Institutional Service Class | (76,860 | ) | (121,392 | ) | – | – | – | |||||||||||||
Institutional Class | (3,082,076 | ) | (9,941,153 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets from shareholder distributions | (8,677,621 | ) | (16,767,803 | ) | (847 | ) | (20,141 | ) | (53,178 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Common Stock Transactions: | ||||||||||||||||||||
Change in net assets from capital transactions | (21,717,178 | ) | (132,879,015 | ) | 1,000,457 | 71,355 | 25,112 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets | (28,542,630 | ) | (152,726,098 | ) | 997,162 | 579,883 | (1,294,809 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of six months | 106,038,911 | 258,765,009 | – | 2,854,820 | 4,149,629 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
End of six months | $ | 77,496,281 | $ | 106,038,911 | $ | 997,162 | $ | 3,434,703 | $ | 2,854,820 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Accumulated net investment income/(loss) at end of six months | $ | (588,759 | ) | $ | (282,331 | ) | $ | 3,495 | $ | 16,725 | $ | 7,654 | ||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
111
Statements of Changes in Net Assets (continued)
Aberdeen International Small Cap Fund | Aberdeen Japanese Equities Fund | Aberdeen Latin American Equity Fund | ||||||||||||||||||
Six Months Ended (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||
Class A Shares | ||||||||||||||||||||
Proceeds from shares issued | $ | 207,802 | $ | 2,680,883 | $ | 10,000 | $ | 565 | $ | 9,506 | ||||||||||
Dividends reinvested | 4,951,616 | 4,222,975 | 6 | 102 | 435 | |||||||||||||||
Cost of shares redeemed(b) | (4,415,658 | ) | (11,520,088 | ) | – | – | (34,114 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class A | 743,760 | (4,616,230 | ) | 10,006 | 667 | (24,173 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class C Shares | ||||||||||||||||||||
Proceeds from shares issued | 29,256 | 319,987 | 10,000 | 19,648 | – | |||||||||||||||
Dividends reinvested | 130,352 | 92,698 | – | 20 | 82 | |||||||||||||||
Cost of shares redeemed(b) | (372,851 | ) | (489,511 | ) | – | – | (11,959 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class C | (213,243 | ) | (76,826 | ) | 10,000 | 19,668 | (11,877 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class R Shares | ||||||||||||||||||||
Proceeds from shares issued | 80,638 | 308,871 | 10,000 | – | – | |||||||||||||||
Dividends reinvested | 51,645 | 51,790 | 9 | 24 | 77 | |||||||||||||||
Cost of shares redeemed(b) | (114,218 | ) | (515,973 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class R | 18,065 | (155,312 | ) | 10,009 | 24 | 77 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Service Class Shares | ||||||||||||||||||||
Proceeds from shares issued | 86 | 702,784 | 10,000 | – | – | |||||||||||||||
Dividends reinvested | 80,468 | 157,784 | 9 | 40 | 105 | |||||||||||||||
Cost of shares redeemed(b) | (991,826 | ) | (1,530,319 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Service Class | (911,272 | ) | (669,751 | ) | 10,009 | 40 | 105 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Class Shares | ||||||||||||||||||||
Proceeds from shares issued | 1,275,005 | 4,894,321 | 960,000 | 31,000 | 8,500 | |||||||||||||||
Dividends reinvested | 3,107,449 | 11,579,955 | 433 | 19,956 | 52,480 | |||||||||||||||
Cost of shares redeemed(b) | (25,736,942 | ) | (143,835,172 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Class | (21,354,488 | ) | (127,360,896 | ) | 960,433 | 50,956 | 60,980 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets from capital transactions: | $ | (21,717,178 | ) | $ | (132,879,015 | ) | $ | 1,000,457 | $ | 71,355 | $ | 25,112 | ||||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period from November 30, 2015 (commencement of operations) through April 30, 2016. |
(b) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
112
Statements of Changes in Net Assets (continued)
Aberdeen International Small Cap Fund | Aberdeen Japanese Equities Fund | Aberdeen Latin American Equity Fund | ||||||||||||||||||
Six Months Ended (Unaudited) | Year Ended 2015 | Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||
Class A Shares | ||||||||||||||||||||
Issued | 8,638 | 94,982 | 1,000 | 109 | 1,369 | |||||||||||||||
Reinvested | 211,336 | 154,458 | 1 | 20 | 65 | |||||||||||||||
Redeemed | (181,932 | ) | (414,833 | ) | – | – | (5,270 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class A Shares | 38,042 | (165,393 | ) | 1,001 | 129 | (3,836 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class C Shares | ||||||||||||||||||||
Issued | 1,230 | 11,981 | 1,000 | 3,342 | – | |||||||||||||||
Reinvested | 6,015 | 3,637 | – | 4 | 12 | |||||||||||||||
Redeemed | (16,853 | ) | (18,731 | ) | – | – | (1,854 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class C Shares | (9,608 | ) | (3,113 | ) | 1,000 | 3,346 | (1,842 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class R Shares | ||||||||||||||||||||
Issued | 3,485 | 11,280 | 1,000 | – | – | |||||||||||||||
Reinvested | 2,305 | 1,970 | 1 | 5 | 11 | |||||||||||||||
Redeemed | (4,803 | ) | (19,417 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class R Shares | 987 | (6,167 | ) | 1,001 | 5 | 11 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Service Class Shares | ||||||||||||||||||||
Issued | 3 | 25,264 | 1,000 | – | – | |||||||||||||||
Reinvested | 3,433 | 5,768 | 1 | 8 | 15 | |||||||||||||||
Redeemed | (39,664 | ) | (54,734 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Service Class Shares | (36,228 | ) | (23,702 | ) | 1,001 | 8 | 15 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Class Shares | ||||||||||||||||||||
Issued | 55,395 | 177,655 | 96,000 | 5,480 | 1,402 | |||||||||||||||
Reinvested | 132,684 | 422,082 | 44 | 3,976 | 7,870 | |||||||||||||||
Redeemed | (1,012,385 | ) | (5,180,832 | ) | – | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Class Shares | (824,306 | ) | (4,581,095 | ) | 96,044 | 9,456 | 9,272 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total change in shares: | (831,113 | ) | (4,779,470 | ) | 100,047 | 12,944 | 3,620 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
113
Statements of Changes in Net Assets (continued)
Aberdeen U.S. Mid Cap Equity Fund | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||
Operations: | ||||||||||||||||||||
Net investment income/(loss) | $ | (49 | ) | $ | 529,268 | $ | 3,650,930 | $ | 548,548 | $ | (566,430 | ) | ||||||||
Net realized gain from investments and foreign currency transactions | 2,926 | 36,385,145 | 26,358,277 | 14,788,861 | 18,850,106 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 76,263 | (34,136,612 | ) | (27,364,444 | ) | 16,531,496 | 2,523,650 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Changes in net assets resulting from operations | 79,140 | 2,777,801 | 2,644,763 | 31,868,905 | 20,807,326 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||
Net investment income: | ||||||||||||||||||||
Class A | – | (377,830 | ) | (2,505,584 | ) | – | – | |||||||||||||
Class C | – | – | (24,330 | ) | – | – | ||||||||||||||
Class R | – | (543 | ) | (3,074 | ) | – | – | |||||||||||||
Institutional Service Class | – | (214,903 | ) | (1,278,061 | ) | – | – | |||||||||||||
Institutional Class | – | (15,558 | ) | (70,221 | ) | – | – | |||||||||||||
Net realized gains: | ||||||||||||||||||||
Class A | – | (11,902,823 | ) | (17,284,152 | ) | – | – | |||||||||||||
Class C | – | (366,439 | ) | (576,102 | ) | – | – | |||||||||||||
Class R | – | (24,769 | ) | (23,350 | ) | – | – | |||||||||||||
Institutional Service Class | – | (5,033,508 | ) | (7,660,936 | ) | – | – | |||||||||||||
Institutional Class | – | (325,415 | ) | (225,732 | ) | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets from shareholder distributions | – | (18,261,788 | ) | (29,651,542 | ) | – | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Common Stock Transactions: | ||||||||||||||||||||
Change in net assets from capital transactions | 1,000,000 | (2,725,849 | ) | (18,905,686 | ) | 227,294,245 | 204,647,443 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets | 1,079,140 | (18,209,836 | ) | (45,912,465 | ) | 259,163,150 | 225,454,769 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of six months | – | 371,488,447 | 417,400,912 | 359,773,296 | 134,318,527 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
End of six months | $ | 1,079,140 | $ | 353,278,611 | $ | 371,488,447 | $ | 618,936,446 | $ | 359,773,296 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Accumulated net investment income/(loss) at end of six months | $ | (49 | ) | $ | 187,390 | $ | 266,956 | $ | (102,043 | ) | $ | (650,591 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period from February 29, 2016 (commencement of operations) through April 30, 2016. |
(b) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
114
Statements of Changes in Net Assets (continued)
Aberdeen U.S. Mid Cap Equity Fund | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||
Class A Shares | ||||||||||||||||||||
Proceeds from shares issued | $ | 10,000 | $ | 1,559,881 | $ | 2,707,890 | $ | 56,388,856 | $ | 16,952,916 | ||||||||||
Dividends reinvested | – | 11,221,671 | 18,131,210 | – | – | |||||||||||||||
Cost of shares redeemed(b) | – | (15,402,248 | ) | (31,889,462 | ) | (14,324,770 | ) | (22,790,262 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class A | 10,000 | (2,620,696 | ) | (11,050,362 | ) | 42,064,086 | (5,837,346 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class C Shares | ||||||||||||||||||||
Proceeds from shares issued | 10,000 | 157,872 | 468,052 | 18,299,640 | 5,625,655 | |||||||||||||||
Dividends reinvested | – | 202,196 | 314,566 | – | – | |||||||||||||||
Cost of shares redeemed(b) | – | (755,889 | ) | (1,523,576 | ) | (3,494,005 | ) | (4,608,416 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class C | 10,000 | (395,821 | ) | (740,958 | ) | 14,805,635 | 1,017,239 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class R Shares | ||||||||||||||||||||
Proceeds from shares issued | 10,000 | 63,773 | 179,165 | 6,860,220 | 4,042,095 | |||||||||||||||
Dividends reinvested | – | 11 | 746 | – | – | |||||||||||||||
Cost of shares redeemed(b) | – | (248,792 | ) | (43,983 | ) | (1,172,272 | ) | (803,779 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class R | 10,000 | (185,008 | ) | 135,928 | 5,687,948 | 3,238,316 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Service Class Shares | ||||||||||||||||||||
Proceeds from shares issued | 10,000 | 482,273 | 1,215,725 | 23,813,365 | 7,503,260 | |||||||||||||||
Dividends reinvested | – | 5,105,142 | 8,700,314 | – | – | |||||||||||||||
Cost of shares redeemed(b) | – | (5,516,756 | ) | (21,023,674 | ) | (10,603,869 | ) | (355,909 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Service Class | 10,000 | 70,659 | (11,107,635 | ) | 13,209,496 | 7,147,351 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Class Shares | ||||||||||||||||||||
Proceeds from shares issued | 960,000 | 1,052,060 | 5,219,479 | 189,618,948 | 229,072,532 | |||||||||||||||
Dividends reinvested | – | 303,370 | 243,190 | – | – | |||||||||||||||
Cost of shares redeemed(b) | – | (950,413 | ) | (1,605,328 | ) | (38,091,868 | ) | (29,990,649 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Class | 960,000 | 405,017 | 3,857,341 | 151,527,080 | 199,081,883 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net assets from capital transactions: | $ | 1,000,000 | $ | (2,725,849 | ) | $ | (18,905,686 | ) | $ | 227,294,245 | $ | 204,647,443 | ||||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period from February 29, 2016 (commencement of operations) through April 30, 2016. |
(b) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
115
Statements of Changes in Net Assets (concluded)
Aberdeen U.S. Mid Cap Equity Fund | Aberdeen U.S. Multi-Cap Equity Fund | Aberdeen U.S. Small Cap Equity Fund | ||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited)(a) | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | Six Months Ended (Unaudited) | Year Ended October 31, 2015 | ||||||||||||||||
SHARE TRANSACTIONS: | �� | |||||||||||||||||||
Class A Shares | ||||||||||||||||||||
Issued | 1,000 | 138,256 | 211,670 | 2,088,791 | 668,104 | |||||||||||||||
Reinvested | – | 984,357 | 1,407,017 | – | – | |||||||||||||||
Redeemed | – | (1,321,081 | ) | (2,496,108 | ) | (540,302 | ) | (896,625 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class A Shares | 1,000 | (198,468 | ) | (877,421 | ) | 1,548,489 | (228,521 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class C Shares | ||||||||||||||||||||
Issued | 1,000 | 15,207 | 39,644 | 775,103 | 247,305 | |||||||||||||||
Reinvested | – | 19,574 | 26,739 | – | – | |||||||||||||||
Redeemed | – | (70,347 | ) | (129,686 | ) | (150,297 | ) | (205,378 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class C Shares | 1,000 | (35,566 | ) | (63,303 | ) | 624,806 | 41,927 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Class R Shares | ||||||||||||||||||||
Issued | 1,000 | 5,642 | 14,533 | 278,158 | 167,201 | |||||||||||||||
Reinvested | – | 1 | 60 | – | – | |||||||||||||||
Redeemed | – | (22,924 | ) | (3,561 | ) | (47,071 | ) | (33,203 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Class R Shares | 1,000 | (17,281 | ) | 11,032 | 231,087 | 133,998 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Service Class Shares | ||||||||||||||||||||
Issued | 1,000 | 38,941 | 89,704 | 855,354 | 274,390 | |||||||||||||||
Reinvested | – | 427,208 | 646,288 | – | – | |||||||||||||||
Redeemed | – | (446,517 | ) | (1,567,694 | ) | (378,765 | ) | (13,285 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Service Class Shares | 1,000 | 19,632 | (831,702 | ) | 476,589 | 261,105 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Institutional Class Shares | ||||||||||||||||||||
Issued | 96,000 | 87,471 | 397,483 | 6,783,576 | 8,460,001 | |||||||||||||||
Reinvested | – | 25,366 | 18,101 | – | – | |||||||||||||||
Redeemed | – | (79,294 | ) | (122,665 | ) | (1,367,914 | ) | (1,111,789 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Institutional Class Shares | 96,000 | 33,543 | 292,919 | 5,415,662 | 7,348,212 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total change in shares: | 100,000 | (198,140 | ) | (1,468,475 | ) | 8,296,633 | 7,556,721 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | For the period from February 29, 2016 (commencement of operations) through April 30, 2016. |
(b) | Includes redemption fees, if any. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
116
This page intentionally left blank.
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 10.04 | $ | 0.08 | $ | (0.29 | ) | $ | (0.21 | ) | $ | (0.21 | ) | $ | – | $ | (0.21 | ) | $ | – | $ | 9.62 | ||||||||||||||
Year Ended October 31, 2015 | 12.08 | 0.14 | (1.68 | ) | (1.54 | ) | (0.30 | ) | (0.20 | ) | (0.50 | ) | – | 10.04 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.01 | 0.14 | 0.15 | 0.29 | (0.15 | ) | (0.07 | ) | (0.22 | ) | – | 12.08 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.73 | 0.17 | 0.54 | 0.71 | (0.27 | ) | (0.16 | ) | (0.43 | ) | – | 12.01 | ||||||||||||||||||||||||
Period Ended October 31, 2012(h) | 11.26 | 0.01 | 0.46 | 0.47 | – | – | – | – | 11.73 | |||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.01 | 0.04 | (0.30 | ) | (0.26 | ) | (0.19 | ) | – | (0.19 | ) | – | 9.56 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 12.05 | 0.07 | (1.67 | ) | (1.60 | ) | (0.24 | ) | (0.20 | ) | (0.44 | ) | – | 10.01 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.00 | 0.05 | 0.15 | 0.20 | (0.08 | ) | (0.07 | ) | (0.15 | ) | – | 12.05 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.66 | 0.13 | 0.50 | 0.63 | (0.13 | ) | (0.16 | ) | (0.29 | ) | – | 12.00 | ||||||||||||||||||||||||
Period Ended October 31, 2012(h) | 11.26 | 0.12 | 0.28 | 0.40 | – | – | – | – | 11.66 | |||||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.02 | 0.07 | (0.29 | ) | (0.22 | ) | (0.21 | ) | – | (0.21 | ) | – | 9.59 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 12.07 | 0.15 | (1.72 | ) | (1.57 | ) | (0.28 | ) | (0.20 | ) | (0.48 | ) | – | 10.02 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.02 | 0.05 | 0.20 | 0.25 | (0.13 | ) | (0.07 | ) | (0.20 | ) | – | 12.07 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.70 | 0.18 | 0.51 | 0.69 | (0.21 | ) | (0.16 | ) | (0.37 | ) | – | 12.02 | ||||||||||||||||||||||||
Period Ended October 31, 2012(h) | 11.26 | 0.15 | 0.29 | 0.44 | – | – | – | – | 11.70 | |||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.06 | 0.09 | (0.30 | ) | (0.21 | ) | (0.21 | ) | – | (0.21 | ) | – | 9.64 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 12.10 | 0.17 | (1.69 | ) | (1.52 | ) | (0.32 | ) | (0.20 | ) | (0.52 | ) | – | 10.06 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.03 | 0.17 | 0.14 | 0.31 | (0.17 | ) | (0.07 | ) | (0.24 | ) | – | 12.10 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.73 | 0.16 | 0.58 | 0.74 | (0.28 | ) | (0.16 | ) | (0.44 | ) | – | 12.03 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 11.34 | 0.22 | 0.96 | 1.18 | (0.23 | ) | (0.56 | ) | (0.79 | ) | – | 11.73 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 11.81 | 0.23 | (0.60 | ) | (0.37 | ) | (0.09 | ) | (0.01 | ) | (0.10 | ) | – | 11.34 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.07 | 0.02 | (0.24 | ) | (0.22 | ) | (0.21 | ) | – | (0.21 | ) | – | 9.64 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 12.11 | 0.21 | (1.72 | ) | (1.51 | ) | (0.33 | ) | (0.20 | ) | (0.53 | ) | – | 10.07 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.04 | 0.16 | 0.16 | 0.32 | (0.18 | ) | (0.07 | ) | (0.25 | ) | – | 12.11 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.74 | 0.19 | 0.56 | 0.75 | (0.29 | ) | (0.16 | ) | (0.45 | ) | – | 12.04 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 11.34 | 0.22 | 0.97 | 1.19 | (0.23 | ) | (0.56 | ) | (0.79 | ) | – | 11.74 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 11.82 | 0.24 | (0.62 | ) | (0.38 | ) | (0.09 | ) | (0.01 | ) | (0.10 | ) | – | 11.34 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
118
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia-Pacific (ex-Japan) Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(2.01 | %) | $ | 739 | 1.52 | %(g) | 1.68 | % | 2.47 | %(g) | 23.80 | % | |||||||||||
(12.94 | %) | 815 | 1.51 | %(g) | 1.21 | % | 1.52 | %(g) | 58.06 | % | ||||||||||||
2.43 | % | 1,173 | 1.50 | % | 1.21 | % | 1.52 | % | 36.48 | % | ||||||||||||
6.12 | % | 1,328 | 1.50 | % | 1.43 | % | 1.51 | % | 3.33 | % | ||||||||||||
4.17 | % | 327 | 1.45 | % | 0.19 | % | 1.46 | % | 21.73 | % | ||||||||||||
(2.47 | %) | 187 | 2.26 | %(g) | 0.84 | % | 3.23 | %(g) | 23.80 | % | ||||||||||||
(13.42 | %) | 280 | 2.26 | %(g) | 0.66 | % | 2.27 | %(g) | 58.06 | % | ||||||||||||
1.67 | % | 288 | 2.25 | % | 0.46 | % | 2.27 | % | 36.48 | % | ||||||||||||
5.47 | % | 146 | 2.25 | % | 1.09 | % | 2.26 | % | 3.33 | % | ||||||||||||
3.55 | % | 10 | 2.18 | % | 1.56 | % | 2.19 | % | 21.73 | % | ||||||||||||
(2.15 | %) | 10 | 1.76 | %(g) | 1.47 | % | 2.71 | %(g) | 23.80 | % | ||||||||||||
(13.17 | %) | 10 | 1.76 | %(g) | 1.30 | % | 1.77 | %(g) | 58.06 | % | ||||||||||||
2.06 | % | 11 | 1.76 | % | 0.40 | % | 1.78 | % | 36.48 | % | ||||||||||||
5.97 | % | 36 | 1.75 | % | 1.50 | % | 1.76 | % | 3.33 | % | ||||||||||||
3.91 | % | 10 | 1.69 | % | 2.05 | % | 1.70 | % | 21.73 | % | ||||||||||||
(1.97 | %) | 3,923 | 1.30 | %(g) | 1.92 | % | 2.25 | %(g) | 23.80 | % | ||||||||||||
(12.73 | %) | 4,017 | 1.29 | %(g) | 1.54 | % | 1.30 | %(g) | 58.06 | % | ||||||||||||
2.59 | % | 3,950 | 1.30 | % | 1.45 | % | 1.32 | % | 36.48 | % | ||||||||||||
6.44 | % | 3,841 | 1.28 | % | 1.35 | % | 1.29 | % | 3.33 | % | ||||||||||||
11.83 | % | 3,717 | 1.24 | % | 2.00 | % | 1.25 | % | 21.73 | % | ||||||||||||
(3.20 | %) | 2,584 | 1.23 | % | 1.95 | % | 1.23 | % | 25.31 | % | ||||||||||||
(2.07 | %) | 12,466 | 1.26 | %(g) | 0.35 | % | 2.22 | %(g) | 23.80 | % | ||||||||||||
(12.68 | %) | 263,176 | 1.26 | %(g) | 1.83 | % | 1.27 | %(g) | 58.06 | % | ||||||||||||
2.64 | % | 1,069,989 | 1.25 | % | 1.32 | % | 1.27 | % | 36.48 | % | ||||||||||||
6.48 | % | 1,004,859 | 1.25 | % | 1.59 | % | 1.26 | % | 3.33 | % | ||||||||||||
11.92 | % | 617,471 | 1.22 | % | 2.01 | % | 1.23 | % | 21.73 | % | ||||||||||||
(3.28 | %) | 434,567 | 1.23 | % | 2.04 | % | 1.23 | % | 25.31 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to 0.01% |
(h) | For the period from February 28, 2012 (commencement of operations) through October 31, 2012. |
2016 Semi-Annual Report
119
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia-Pacific Smaller Companies Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 8.07 | $ | 0.01 | $ | 0.03 | $ | 0.04 | $ | (0.06 | ) | $ | – | $ | (0.06 | ) | $ | – | $ | 8.05 | ||||||||||||||||
Year Ended October 31, 2015 | 10.13 | 0.13 | (1.80 | ) | (1.67 | ) | (0.16 | ) | (0.23 | ) | (0.39 | ) | – | 8.07 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 11.88 | 0.11 | (0.04 | ) | 0.07 | (0.17 | ) | (1.65 | ) | (1.82 | ) | – | 10.13 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 11.01 | 0.24 | 1.00 | 1.24 | (0.28 | ) | (0.09 | ) | (0.37 | ) | – | 11.88 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 8.95 | 0.15 | 1.93 | 2.08 | – | (0.02 | ) | (0.02 | ) | – | 11.01 | |||||||||||||||||||||||||
Period Ended October 31, 2011(h) | 10.00 | 0.01 | (1.06 | ) | (1.05 | ) | – | – | – | – | 8.95 | |||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 7.98 | (0.03 | ) | 0.04 | 0.01 | (0.05 | ) | – | (0.05 | ) | – | 7.94 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.01 | 0.09 | (1.79 | ) | (1.70 | ) | (0.10 | ) | (0.23 | ) | (0.33 | ) | – | 7.98 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 11.76 | 0.05 | (0.05 | ) | – | (0.10 | ) | (1.65 | ) | (1.75 | ) | – | 10.01 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 10.90 | 0.11 | 1.03 | 1.14 | (0.19 | ) | (0.09 | ) | (0.28 | ) | – | 11.76 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 8.93 | 0.06 | 1.93 | 1.99 | – | (0.02 | ) | (0.02 | ) | – | 10.90 | |||||||||||||||||||||||||
Period Ended October 31, 2011(h) | 10.00 | 0.01 | (1.08 | ) | (1.07 | ) | – | – | – | – | 8.93 | |||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.10 | – | (j) | 0.03 | 0.03 | (0.05 | ) | – | (0.05 | ) | – | 8.08 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.14 | 0.19 | (1.85 | ) | (1.66 | ) | (0.15 | ) | (0.23 | ) | (0.38 | ) | – | 8.10 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 11.84 | 0.08 | (0.05 | ) | 0.03 | (0.08 | ) | (1.65 | ) | (1.73 | ) | – | 10.14 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 10.98 | 0.05 | 1.09 | 1.14 | (0.19 | ) | (0.09 | ) | (0.28 | ) | – | 11.84 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 8.94 | 0.05 | 2.01 | 2.06 | – | (0.02 | ) | (0.02 | ) | – | 10.98 | |||||||||||||||||||||||||
Period Ended October 31, 2011(h) | 10.00 | 0.02 | (1.08 | ) | (1.06 | ) | – | – | – | – | 8.94 | |||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.20 | 0.02 | 0.04 | 0.06 | (0.07 | ) | – | (0.07 | ) | – | 8.19 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.30 | 0.23 | (1.90 | ) | (1.67 | ) | (0.20 | ) | (0.23 | ) | (0.43 | ) | – | 8.20 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 12.04 | 0.14 | (0.04 | ) | 0.10 | (0.19 | ) | (1.65 | ) | (1.84 | ) | – | 10.30 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 11.05 | 0.24 | 1.16 | 1.40 | (0.32 | ) | (0.09 | ) | (0.41 | ) | – | 12.04 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 8.96 | 0.16 | 1.96 | 2.12 | (0.01 | ) | (0.02 | ) | (0.03 | ) | – | 11.05 | ||||||||||||||||||||||||
Period Ended October 31, 2011(h) | 10.00 | 0.04 | (1.08 | ) | (1.04 | ) | – | – | – | – | 8.96 | |||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.10 | 0.01 | 0.05 | 0.06 | (0.07 | ) | – | (0.07 | ) | – | 8.09 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.17 | 0.17 | (1.81 | ) | (1.64 | ) | (0.20 | ) | (0.23 | ) | (0.43 | ) | – | 8.10 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 11.91 | 0.13 | (0.03 | ) | 0.10 | (0.19 | ) | (1.65 | ) | (1.84 | ) | – | 10.17 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 11.05 | 0.23 | 1.04 | 1.27 | (0.32 | ) | (0.09 | ) | (0.41 | ) | – | 11.91 | ||||||||||||||||||||||||
Year Ended October 31, 2012 | 8.96 | 0.18 | 1.94 | 2.12 | (0.01 | ) | (0.02 | ) | (0.03 | ) | – | 11.05 | ||||||||||||||||||||||||
Period Ended October 31, 2011(h) | 10.00 | 0.04 | (1.08 | ) | (1.04 | ) | – | – | – | – | 8.96 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
120
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia-Pacific Smaller Companies Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
0.49 | % | $ | 774 | 1.92 | %(g) | 0.20 | % | 5.77 | %(g) | 25.41 | % | |||||||||||
(16.80 | %) | 776 | 1.89 | %(g) | 1.41 | % | 2.84 | %(g) | 4.10 | % | ||||||||||||
1.78 | % | 1,341 | 1.79 | % | 1.12 | % | 2.69 | % | 51.86 | % | ||||||||||||
11.43 | % | 1,389 | 1.77 | % | 2.08 | % | 2.41 | % | 58.61 | % | ||||||||||||
23.41 | % | 173 | 1.95 | % | 1.49 | % | 2.83 | % | 9.52 | % | ||||||||||||
(10.50 | %) | 123 | 1.95 | % | 0.43 | % | 19.61 | % | 1.68 | % | ||||||||||||
0.17 | % | 8 | 2.50 | %(g) | (0.83 | %) | 6.35 | %(g) | 25.41 | % | ||||||||||||
(17.33 | %) | 29 | 2.51 | %(g) | 0.96 | % | 3.46 | %(g) | 4.10 | % | ||||||||||||
1.16 | % | 61 | 2.50 | % | 0.50 | % | 3.39 | % | 51.86 | % | ||||||||||||
10.58 | % | 61 | 2.54 | % | 0.96 | % | 3.16 | % | 58.61 | % | ||||||||||||
22.38 | %(i) | 11 | 2.70 | % | 0.65 | % | 3.58 | % | 9.52 | % | ||||||||||||
(10.70 | %) | 9 | 2.70 | % | 0.19 | % | 20.48 | % | 1.68 | % | ||||||||||||
0.47 | % | 17 | 2.09 | %(g) | 0.05 | % | 5.94 | %(g) | 25.41 | % | ||||||||||||
(16.70 | %) | 18 | 2.01 | %(g) | 2.09 | % | 2.96 | %(g) | 4.10 | % | ||||||||||||
1.41 | % | 13 | 2.07 | % | 0.81 | % | 2.96 | % | 51.86 | % | ||||||||||||
10.48 | % | 36 | 2.28 | % | 0.45 | % | 2.86 | % | 58.61 | % | ||||||||||||
23.16 | % | 67 | 2.39 | % | 0.48 | % | 3.26 | % | 9.52 | % | ||||||||||||
(10.60 | %) | 9 | 2.20 | % | 0.69 | % | 19.98 | % | 1.68 | % | ||||||||||||
0.73 | % | 102 | 1.57 | %(g) | 0.49 | % | 5.42 | %(g) | 25.41 | % | ||||||||||||
(16.54 | %) | 121 | 1.51 | %(g) | 2.49 | % | 2.46 | %(g) | 4.10 | % | ||||||||||||
2.09 | % | 55 | 1.50 | % | 1.38 | % | 2.39 | % | 51.86 | % | ||||||||||||
12.85 | % | 33 | 1.54 | % | 2.00 | % | 2.16 | % | 58.61 | % | ||||||||||||
23.77 | %(i) | 13 | 1.70 | % | 1.65 | % | 2.58 | % | 9.52 | % | ||||||||||||
(10.40 | %) | 9 | 1.70 | % | 1.19 | % | 19.48 | % | 1.68 | % | ||||||||||||
0.74 | % | 2,194 | 1.50 | %(g) | 0.19 | % | 5.35 | %(g) | 25.41 | % | ||||||||||||
(16.46 | %) | 7,132 | 1.50 | %(g) | 1.88 | % | 2.45 | %(g) | 4.10 | % | ||||||||||||
2.12 | % | 29,502 | 1.50 | % | 1.23 | % | 2.39 | % | 51.86 | % | ||||||||||||
11.63 | % | 25,960 | 1.56 | % | 1.92 | % | 2.16 | % | 58.61 | % | ||||||||||||
23.77 | % | 29,292 | 1.70 | % | 1.78 | % | 2.58 | % | 9.52 | % | ||||||||||||
(10.40 | %) | 1,434 | 1.70 | % | 1.19 | % | 19.48 | % | 1.68 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | For the period from June 28, 2011 (commencement of operations) through October 31, 2011. |
(i) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(j) | Less than $0.005 per share. |
2016 Semi-Annual Report
121
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen China Opportunities Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 17.94 | $ | (0.07 | ) | $ | (0.62 | ) | $ | (0.69 | ) | $ | – | $ | – | $ | – | $ | 17.25 | |||||||||||||
Year Ended October 31, 2015 | 20.19 | 0.22 | (2.14 | ) | (1.92 | ) | (0.33 | ) | (0.33 | ) | – | 17.94 | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.54 | 0.16 | (0.33 | ) | (0.17 | ) | (0.18 | ) | (0.18 | ) | – | 20.19 | ||||||||||||||||||||
Year Ended October 31, 2013 | 19.64 | 0.15 | 0.82 | 0.97 | (0.08 | ) | (0.08 | ) | 0.01 | 20.54 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 18.81 | 0.35 | 0.88 | 1.23 | (0.41 | ) | (0.41 | ) | 0.01 | 19.64 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 20.66 | 0.21 | (1.91 | ) | (1.70 | ) | (0.16 | ) | (0.16 | ) | 0.01 | 18.81 | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 17.26 | (0.13 | ) | (0.59 | ) | (0.72 | ) | – | – | – | 16.54 | |||||||||||||||||||||
Year Ended October 31, 2015 | 19.50 | 0.18 | (2.17 | ) | (1.99 | ) | (0.25 | ) | (0.25 | ) | – | 17.26 | ||||||||||||||||||||
Year Ended October 31, 2014 | 19.87 | 0.01 | (0.32 | ) | (0.31 | ) | (0.06 | ) | (0.06 | ) | – | 19.50 | ||||||||||||||||||||
Year Ended October 31, 2013 | 19.09 | (0.01 | ) | 0.81 | 0.80 | (0.02 | ) | (0.02 | ) | – | 19.87 | |||||||||||||||||||||
Year Ended October 31, 2012 | 18.30 | 0.19 | 0.87 | 1.06 | (0.28 | ) | (0.28 | ) | 0.01 | 19.09 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 20.09 | 0.02 | (1.80 | ) | (1.78 | ) | (0.02 | ) | (0.02 | ) | 0.01 | 18.30 | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 17.68 | (0.10 | ) | (0.62 | ) | (0.72 | ) | – | – | – | 16.96 | |||||||||||||||||||||
Year Ended October 31, 2015 | 19.92 | 0.23 | (2.19 | ) | (1.96 | ) | (0.28 | ) | (0.28 | ) | – | 17.68 | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.29 | 0.10 | (0.35 | ) | (0.25 | ) | (0.12 | ) | (0.12 | ) | – | 19.92 | ||||||||||||||||||||
Year Ended October 31, 2013 | 19.43 | 0.10 | 0.79 | 0.89 | (0.03 | ) | (0.03 | ) | – | 20.29 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 18.62 | 0.26 | 0.89 | 1.15 | (0.35 | ) | (0.35 | ) | 0.01 | 19.43 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 20.46 | 0.14 | (1.88 | ) | (1.74 | ) | (0.11 | ) | (0.11 | ) | 0.01 | 18.62 | ||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 18.00 | (0.05 | ) | (0.62 | ) | (0.67 | ) | – | – | – | 17.33 | |||||||||||||||||||||
Year Ended October 31, 2015 | 20.28 | 0.30 | (2.18 | ) | (1.88 | ) | (0.40 | ) | (0.40 | ) | – | 18.00 | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.62 | 0.21 | (0.33 | ) | (0.12 | ) | (0.22 | ) | (0.22 | ) | – | 20.28 | ||||||||||||||||||||
Year Ended October 31, 2013 | 19.72 | 0.18 | 0.84 | 1.02 | (0.13 | ) | (0.13 | ) | 0.01 | 20.62 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 18.88 | 0.38 | 0.91 | 1.29 | (0.46 | ) | (0.46 | ) | 0.01 | 19.72 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 20.73 | 0.22 | (1.87 | ) | (1.65 | ) | (0.21 | ) | (0.21 | ) | 0.01 | 18.88 | ||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 18.00 | (0.05 | ) | (0.62 | ) | (0.67 | ) | – | – | – | 17.33 | |||||||||||||||||||||
Year Ended October 31, 2015 | 20.28 | 0.35 | (2.23 | ) | (1.88 | ) | (0.40 | ) | (0.40 | ) | – | 18.00 | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.64 | 0.25 | (0.38 | ) | (0.13 | ) | (0.23 | ) | (0.23 | ) | – | 20.28 | ||||||||||||||||||||
Year Ended October 31, 2013 | 19.74 | 0.19 | 0.83 | 1.02 | (0.13 | ) | (0.13 | ) | 0.01 | 20.64 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 18.90 | 0.39 | 0.90 | 1.29 | (0.46 | ) | (0.46 | ) | 0.01 | 19.74 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 20.74 | 0.25 | (1.89 | ) | (1.64 | ) | (0.21 | ) | (0.21 | ) | 0.01 | 18.90 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
122
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen China Opportunities Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income (Loss) to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(3.85 | %) | $ | 7,364 | 1.92 | %(g) | (0.89 | %) | 2.82 | %(g) | 8.56 | % | |||||||||||
(9.50 | %) | 8,221 | 1.89 | %(g) | 1.12 | % | 2.48 | %(g) | 10.48 | % | ||||||||||||
(0.82 | %) | 19,425 | 1.89 | % | 0.79 | % | 2.30 | % | 30.61 | % | ||||||||||||
4.98 | % | 21,682 | 1.89 | % | 0.71 | % | 2.18 | % | 14.51 | % | ||||||||||||
6.68 | % | 21,882 | 1.90 | % | 1.81 | % | 2.13 | % | 21.42 | % | ||||||||||||
(8.20 | %) | 25,086 | 1.89 | % | 1.02 | % | 2.12 | % | 20.44 | % | ||||||||||||
(4.17 | %) | 3,710 | 2.62 | %(g) | (1.64 | %) | 3.55 | %(g) | 8.56 | % | ||||||||||||
(10.18 | %) | 4,711 | 2.62 | %(g) | 0.95 | % | 3.21 | %(g) | 10.48 | % | ||||||||||||
(1.57 | %) | 6,064 | 2.62 | % | 0.04 | % | 3.03 | % | 30.61 | % | ||||||||||||
4.18 | % | 7,704 | 2.62 | % | (0.06 | %) | 2.91 | % | 14.51 | % | ||||||||||||
5.90 | % | 9,164 | 2.62 | % | 1.02 | % | 2.85 | % | 21.42 | % | ||||||||||||
(8.78 | %) | 9,161 | 2.62 | % | 0.11 | % | 2.84 | % | 20.44 | % | ||||||||||||
(4.07 | %) | 1,395 | 2.32 | %(g) | (1.24 | %) | 3.22 | %(g) | 8.56 | % | ||||||||||||
(9.83 | %) | 1,293 | 2.29 | %(g) | 1.20 | % | 2.88 | %(g) | 10.48 | % | ||||||||||||
(1.25 | %) | 1,495 | 2.27 | % | 0.50 | % | 2.68 | % | 30.61 | % | ||||||||||||
4.61 | % | 1,599 | 2.25 | % | 0.47 | % | 2.54 | % | 14.51 | % | ||||||||||||
6.32 | % | 1,225 | 2.24 | % | 1.36 | % | 2.47 | % | 21.42 | % | ||||||||||||
(8.44 | %) | 930 | 2.20 | % | 0.71 | % | 2.43 | % | 20.44 | % | ||||||||||||
(3.72 | %) | 775 | 1.66 | %(g) | (0.61 | %) | 2.56 | %(g) | 8.56 | % | ||||||||||||
(9.30 | %) | 825 | 1.63 | %(g) | 1.53 | % | 2.22 | %(g) | 10.48 | % | ||||||||||||
(0.56 | %) | 1,778 | 1.64 | % | 1.05 | % | 2.05 | % | 30.61 | % | ||||||||||||
5.22 | % | 2,383 | 1.62 | % | 0.88 | % | 1.91 | % | 14.51 | % | ||||||||||||
6.99 | % | 4,529 | 1.62 | % | 1.99 | % | 1.85 | % | 21.42 | % | ||||||||||||
(7.92 | %) | 3,498 | 1.62 | % | 1.08 | % | 1.84 | % | 20.44 | % | ||||||||||||
(3.72 | %) | 1,641 | 1.62 | %(g) | (0.57 | %) | 2.55 | %(g) | 8.56 | % | ||||||||||||
(9.27 | %) | 1,804 | 1.63 | %(g) | 1.80 | % | 2.22 | %(g) | 10.48 | % | ||||||||||||
(0.65 | %) | 1,604 | 1.62 | % | 1.23 | % | 2.03 | % | 30.61 | % | ||||||||||||
5.22 | % | 1,250 | 1.62 | % | 0.90 | % | 1.91 | % | 14.51 | % | ||||||||||||
6.99 | % | 1,683 | 1.62 | % | 2.01 | % | 1.85 | % | 21.42 | % | ||||||||||||
(7.91 | %) | 1,247 | 1.62 | % | 1.20 | % | 1.84 | % | 20.44 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
2016 Semi-Annual Report
123
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.22 | $ | 0.02 | $ | 0.39 | $ | 0.41 | $ | – | (g) | $ | (0.13 | ) | $ | (0.13 | ) | $ | – | $ | 12.50 | |||||||||||||||
Year Ended October 31, 2015 | 14.88 | 0.11 | (2.20 | ) | (2.09 | ) | (0.13 | ) | (0.44 | ) | (0.57 | ) | – | 12.22 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 15.30 | 0.16 | (0.37 | ) | (0.21 | ) | (0.21 | ) | – | (0.21 | ) | – | 14.88 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 15.00 | 0.17 | 0.36 | 0.53 | (0.23 | ) | – | (0.23 | ) | – | 15.30 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 13.07 | 0.09 | 1.84 | 1.93 | – | – | – | – | 15.00 | |||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.14 | (0.02 | ) | 0.39 | 0.37 | – | (0.13 | ) | (0.13 | ) | – | 12.38 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 14.79 | 0.02 | (2.17 | ) | (2.15 | ) | (0.06 | ) | (0.44 | ) | (0.50 | ) | – | 12.14 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 15.23 | 0.05 | (0.36 | ) | (0.31 | ) | (0.13 | ) | – | (0.13 | ) | – | 14.79 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 14.95 | 0.09 | 0.34 | 0.43 | (0.15 | ) | – | (0.15 | ) | – | 15.23 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 13.07 | 0.05 | 1.83 | 1.88 | – | – | – | – | 14.95 | |||||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.17 | – | (g) | 0.38 | 0.38 | – | (0.13 | ) | (0.13 | ) | – | 12.42 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 14.83 | 0.06 | (2.19 | ) | (2.13 | ) | (0.09 | ) | (0.44 | ) | (0.53 | ) | – | 12.17 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 15.27 | 0.11 | (0.38 | ) | (0.27 | ) | (0.17 | ) | – | (0.17 | ) | – | 14.83 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 14.98 | 0.14 | 0.35 | 0.49 | (0.20 | ) | – | (0.20 | ) | – | 15.27 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 13.07 | 0.08 | 1.83 | 1.91 | – | – | – | – | 14.98 | |||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.22 | 0.03 | 0.40 | 0.43 | (0.01 | ) | (0.13 | ) | (0.14 | ) | – | 12.51 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 14.89 | 0.18 | (2.25 | ) | (2.07 | ) | (0.16 | ) | (0.44 | ) | (0.60 | ) | – | 12.22 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 15.30 | 0.13 | (0.33 | ) | (0.20 | ) | (0.21 | ) | – | (0.21 | ) | – | 14.89 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 14.99 | 0.19 | 0.35 | 0.54 | (0.23 | ) | – | (0.23 | ) | – | 15.30 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 13.68 | 0.18 | 1.40 | 1.58 | (0.15 | ) | (0.12 | ) | (0.27 | ) | – | 14.99 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 14.29 | 0.22 | (0.70 | ) | (0.48 | ) | (0.13 | ) | – | (0.13 | ) | – | 13.68 | |||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.24 | 0.04 | 0.39 | 0.43 | (0.02 | ) | (0.13 | ) | (0.15 | ) | – | 12.52 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 14.90 | 0.16 | (2.20 | ) | (2.04 | ) | (0.18 | ) | (0.44 | ) | (0.62 | ) | – | 12.24 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 15.31 | 0.20 | (0.35 | ) | (0.15 | ) | (0.26 | ) | – | (0.26 | ) | – | 14.90 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 15.02 | 0.22 | 0.36 | 0.58 | (0.29 | ) | – | (0.29 | ) | – | 15.31 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 13.70 | 0.22 | 1.40 | 1.62 | (0.18 | ) | (0.12 | ) | (0.30 | ) | – | 15.02 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 14.28 | 0.26 | (0.71 | ) | (0.45 | ) | (0.13 | ) | – | (0.13 | ) | – | 13.70 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
124
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income (Loss) to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
3.51 | % | $ | 169,743 | 1.49 | %(h) | 0.33 | % | 1.54 | %(h) | 3.65 | % | |||||||||||
(14.28 | %) | 192,039 | 1.44 | %(h) | 0.81 | % | 1.47 | %(h) | 11.58 | % | ||||||||||||
(1.37 | %) | 341,483 | 1.41 | % | 1.05 | % | 1.43 | % | 5.00 | % | ||||||||||||
3.50 | % | 417,896 | 1.43 | % | 1.13 | % | 1.43 | % | 2.79 | % | ||||||||||||
14.77 | % | 274,047 | 1.40 | % | 1.46 | % | 1.40 | % | 1.14 | % | ||||||||||||
3.18 | % | 24,796 | 2.10 | %(h) | (0.30 | %) | 2.19 | %(h) | 3.65 | % | ||||||||||||
(14.80 | %) | 30,850 | 2.10 | %(h) | 0.17 | % | 2.13 | %(h) | 11.58 | % | ||||||||||||
(2.04 | %) | 45,077 | 2.10 | % | 0.36 | % | 2.12 | % | 5.00 | % | ||||||||||||
2.85 | % | 49,826 | 2.10 | % | 0.60 | % | 2.10 | % | 2.79 | % | ||||||||||||
14.38 | % | 19,328 | 2.09 | % | 0.77 | % | 2.09 | % | 1.14 | % | ||||||||||||
3.25 | % | 39,378 | 1.81 | %(h) | 0.08 | % | 1.86 | %(h) | 3.65 | % | ||||||||||||
(14.59 | %) | 33,881 | 1.83 | %(h) | 0.46 | % | 1.86 | %(h) | 11.58 | % | ||||||||||||
(1.76 | %) | 31,720 | 1.79 | % | 0.76 | % | 1.81 | % | 5.00 | % | ||||||||||||
3.26 | % | 22,968 | 1.74 | % | 0.90 | % | 1.74 | % | 2.79 | % | ||||||||||||
14.61 | % | 8,811 | 1.64 | % | 1.19 | % | 1.64 | % | 1.14 | % | ||||||||||||
3.63 | % | 392,428 | 1.30 | %(h) | 0.53 | % | 1.35 | %(h) | 3.65 | % | ||||||||||||
(14.20 | %) | 409,406 | 1.32 | %(h) | 1.35 | % | 1.35 | %(h) | 11.58 | % | ||||||||||||
(1.29 | %) | 234,846 | 1.34 | % | 0.90 | % | 1.36 | % | 5.00 | % | ||||||||||||
3.61 | % | 443,469 | 1.35 | % | 1.22 | % | 1.35 | % | 2.79 | % | ||||||||||||
11.94 | % | 298,472 | 1.29 | % | 1.31 | % | 1.29 | % | 1.14 | % | ||||||||||||
(3.41 | %) | 248,725 | 1.21 | % | 1.55 | % | 1.29 | % | 1.51 | % | ||||||||||||
3.63 | %(i) | 6,689,001 | 1.10 | %(h) | 0.75 | % | 1.15 | %(h) | 3.65 | % | ||||||||||||
(13.98 | %)(j) | 6,963,195 | 1.10 | %(h) | 1.15 | % | 1.13 | %(h) | 11.58 | % | ||||||||||||
(1.01 | %) | 9,389,216 | 1.10 | % | 1.35 | % | 1.12 | % | 5.00 | % | ||||||||||||
3.86 | % | 11,114,896 | 1.10 | % | 1.43 | % | 1.10 | % | 2.79 | % | ||||||||||||
12.25 | % | 7,651,960 | 1.05 | % | 1.59 | % | 1.05 | % | 1.14 | % | ||||||||||||
(3.14 | %) | 4,562,269 | 0.95 | % | 1.87 | % | 1.03 | % | 1.51 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Less than $0.005 per share. |
(h) | Includes interest expense that amounts to less than 0.01%. |
(i) | For the period from May 21, 2012 (commencement of operations) through October 31, 2012. |
(j) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
125
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Equity Long-Short Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 10.30 | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.15 | ) | $ | (1.30 | ) | $ | (1.30 | ) | $ | – | $ | 8.85 | |||||||||||
Year Ended October 31, 2015 | 12.26 | (0.13 | ) | 0.26 | 0.13 | (2.09 | ) | (2.09 | ) | – | 10.30 | |||||||||||||||||||||
Year Ended October 31, 2014 | 12.12 | (0.13 | ) | 0.48 | 0.35 | (0.21 | ) | (0.21 | ) | – | 12.26 | |||||||||||||||||||||
Year Ended October 31, 2013 | 11.29 | (0.14 | ) | 1.10 | 0.96 | (0.13 | ) | (0.13 | ) | – | 12.12 | |||||||||||||||||||||
Year Ended October 31, 2012 | 11.17 | (0.19 | ) | 0.42 | 0.23 | (0.11 | ) | (0.11 | ) | – | 11.29 | |||||||||||||||||||||
Year Ended October 31, 2011 | 11.35 | (0.20 | ) | 0.02 | (0.18 | ) | – | – | – | 11.17 | ||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 6.38 | (0.06 | ) | (0.06 | ) | (0.12 | ) | (1.30 | ) | (1.30 | ) | – | 4.96 | |||||||||||||||||||
Year Ended October 31, 2015 | 8.43 | (0.13 | ) | 0.17 | 0.04 | (2.09 | ) | (2.09 | ) | – | 6.38 | |||||||||||||||||||||
Year Ended October 31, 2014 | 8.45 | (0.15 | ) | 0.34 | 0.19 | (0.21 | ) | (0.21 | ) | – | 8.43 | |||||||||||||||||||||
Year Ended October 31, 2013 | 7.96 | (0.15 | ) | 0.77 | 0.62 | (0.13 | ) | (0.13 | ) | – | 8.45 | |||||||||||||||||||||
Year Ended October 31, 2012 | 7.97 | (0.19 | ) | 0.29 | 0.10 | (0.11 | ) | (0.11 | ) | – | 7.96 | |||||||||||||||||||||
Year Ended October 31, 2011 | 8.16 | (0.20 | ) | 0.01 | (0.19 | ) | – | – | – | 7.97 | ||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.76 | (0.08 | ) | (0.07 | ) | (0.15 | ) | (1.30 | ) | (1.30 | ) | – | 8.31 | |||||||||||||||||||
Year Ended October 31, 2015 | 11.77 | (0.16 | ) | 0.24 | 0.08 | (2.09 | ) | (2.09 | ) | – | 9.76 | |||||||||||||||||||||
Year Ended October 31, 2014 | 11.69 | (0.18 | ) | 0.47 | 0.29 | (0.21 | ) | (0.21 | ) | – | 11.77 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.94 | (0.18 | ) | 1.06 | 0.88 | (0.13 | ) | (0.13 | ) | – | 11.69 | |||||||||||||||||||||
Year Ended October 31, 2012 | 10.88 | (0.23 | ) | 0.40 | 0.17 | (0.11 | ) | (0.11 | ) | – | 10.94 | |||||||||||||||||||||
Year Ended October 31, 2011 | 11.08 | (0.23 | ) | 0.03 | (0.20 | ) | – | – | – | 10.88 | ||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.48 | (0.07 | ) | (0.07 | ) | (0.14 | ) | (1.30 | ) | (1.30 | ) | – | 9.04 | |||||||||||||||||||
Year Ended October 31, 2015 | 12.44 | (0.12 | ) | 0.25 | 0.13 | (2.09 | ) | (2.09 | ) | – | 10.48 | |||||||||||||||||||||
Year Ended October 31, 2014 | 12.28 | (0.12 | ) | 0.49 | 0.37 | (0.21 | ) | (0.21 | ) | – | 12.44 | |||||||||||||||||||||
Year Ended October 31, 2013 | 11.43 | (0.12 | ) | 1.10 | 0.98 | (0.13 | ) | (0.13 | ) | – | 12.28 | |||||||||||||||||||||
Year Ended October 31, 2012 | 11.30 | (0.18 | ) | 0.42 | 0.24 | (0.11 | ) | (0.11 | ) | – | 11.43 | |||||||||||||||||||||
Year Ended October 31, 2011 | 11.47 | (0.21 | ) | 0.04 | (0.17 | ) | – | – | – | 11.30 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.64 | (0.06 | ) | (0.08 | ) | (0.14 | ) | (1.30 | ) | (1.30 | ) | – | 9.20 | |||||||||||||||||||
Year Ended October 31, 2015 | 12.56 | (0.10 | ) | 0.27 | 0.17 | (2.09 | ) | (2.09 | ) | – | 10.64 | |||||||||||||||||||||
Year Ended October 31, 2014 | 12.37 | (0.10 | ) | 0.50 | 0.40 | (0.21 | ) | (0.21 | ) | – | 12.56 | |||||||||||||||||||||
Year Ended October 31, 2013 | 11.48 | (0.10 | ) | 1.12 | 1.02 | (0.13 | ) | (0.13 | ) | – | 12.37 | |||||||||||||||||||||
Year Ended October 31, 2012 | 11.33 | (0.16 | ) | 0.42 | 0.26 | (0.11 | ) | (0.11 | ) | – | 11.48 | |||||||||||||||||||||
Year Ended October 31, 2011 | 11.48 | (0.17 | ) | 0.02 | (0.15 | ) | – | – | – | 11.33 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
126
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Equity Long-Short Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income (Loss) to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Dividend Expense (d)(f) | Portfolio Turnover (c)(g) | ||||||||||||||||||||
(1.23 | %) | $ | 14,433 | 3.16 | % | (1.69 | %) | 3.47 | % | 1.57 | %(h) | 22.82 | % | |||||||||||||
1.18 | % | 16,869 | 2.93 | %(i) | (1.21 | %) | 3.12 | %(i) | 1.36 | %(h) | 14.04 | % | ||||||||||||||
2.90 | % | 30,368 | 2.64 | % | (1.09 | %) | 2.79 | % | 1.08 | %(h) | 31.13 | % | ||||||||||||||
8.54 | % | 62,819 | 2.62 | % | (1.15 | %) | �� | 2.72 | % | 1.04 | %(h) | 41.95 | % | |||||||||||||
2.10 | % | 70,070 | 2.79 | % | (1.70 | %) | 2.79 | % | 1.10 | %(h) | 47.63 | % | ||||||||||||||
(1.58 | %) | 93,352 | 2.32 | % | (1.75 | %) | 2.40 | % | 0.63 | % | 62.65 | % | ||||||||||||||
(1.55 | %) | 4,153 | 3.79 | % | (2.28 | %) | 4.13 | % | 1.54 | %(h) | 22.82 | % | ||||||||||||||
0.51 | % | 7,480 | 3.61 | %(i) | (1.90 | %) | 3.80 | %(i) | 1.35 | %(h) | 14.04 | % | ||||||||||||||
2.26 | % | 10,162 | 3.36 | % | (1.81 | %) | 3.51 | % | 1.11 | %(h) | 31.13 | % | ||||||||||||||
7.83 | % | 12,104 | 3.32 | % | (1.85 | %) | 3.42 | % | 1.05 | %(h) | 41.95 | % | ||||||||||||||
1.31 | % | 13,681 | 3.46 | % | (2.36 | %) | 3.46 | % | 1.10 | %(h) | 47.63 | % | ||||||||||||||
(2.33 | %) | 17,345 | 3.04 | % | (2.47 | %) | 3.13 | % | 0.62 | % | 62.65 | % | ||||||||||||||
(1.30 | %) | 3,035 | 3.46 | % | (1.99 | %) | 3.76 | % | 1.56 | %(h) | 22.82 | % | ||||||||||||||
0.74 | % | 3,202 | 3.35 | %(i) | (1.65 | %) | 3.54 | %(i) | 1.34 | %(h) | 14.04 | % | ||||||||||||||
2.49 | % | 3,437 | 3.12 | % | (1.56 | %) | 3.27 | % | 1.12 | %(h) | 31.13 | % | ||||||||||||||
8.07 | % | 2,759 | 3.01 | % | (1.55 | %) | 3.12 | % | 1.01 | %(h) | 41.95 | % | ||||||||||||||
1.60 | % | 2,118 | 3.22 | % | (2.12 | %) | 3.22 | % | 1.11 | %(h) | 47.63 | % | ||||||||||||||
(1.81 | %) | 2,245 | 2.61 | % | (2.07 | %) | 2.68 | % | 0.67 | % | 62.65 | % | ||||||||||||||
(1.10 | %) | 737 | 2.98 | % | (1.51 | %) | 3.29 | % | 1.53 | %(h) | 22.82 | % | ||||||||||||||
1.16 | % | 789 | 2.86 | %(i) | (1.13 | %) | 3.05 | %(i) | 1.35 | %(h) | 14.04 | % | ||||||||||||||
3.03 | % | 1,871 | 2.59 | % | (1.02 | %) | 2.75 | % | 1.09 | %(h) | 31.13 | % | ||||||||||||||
8.61 | % | 3,551 | 2.47 | % | (1.00 | %) | 2.59 | % | 0.99 | %(h) | 41.95 | % | ||||||||||||||
2.17 | % | 1,992 | 2.72 | % | (1.60 | %) | 2.72 | % | 1.11 | %(h) | 47.63 | % | ||||||||||||||
(1.48 | %) | 8,380 | 2.37 | % | (1.90 | %) | 2.40 | % | 0.77 | % | 62.65 | % | ||||||||||||||
(1.08 | %) | 75,630 | 2.82 | % | (1.34 | %) | 3.15 | % | 1.57 | %(h) | 22.82 | % | ||||||||||||||
1.52 | % | 92,887 | 2.61 | %(i) | (0.89 | %) | 2.80 | %(i) | 1.36 | %(h) | 14.04 | % | ||||||||||||||
3.26 | % | 303,638 | 2.33 | % | (0.78 | %) | 2.49 | % | 1.08 | %(h) | 31.13 | % | ||||||||||||||
8.92 | % | 581,327 | 2.29 | % | (0.82 | %) | 2.40 | % | 1.03 | %(h) | 41.95 | % | ||||||||||||||
2.34 | % | 480,181 | 2.48 | % | (1.37 | %) | 2.48 | % | 1.11 | %(h) | 47.63 | % | ||||||||||||||
(1.31 | %) | 382,920 | 2.06 | % | (1.50 | %) | 2.14 | % | 0.64 | % | 62.65 | % |
(f) | Indicates the dividend expense charged for the period to average net assets. |
(g) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(h) | Dividend expense ratio includes broker related expenses for securities sold short. |
(i) | Includes interest expense that amounts to less than 0.01%. |
2016 Semi-Annual Report
127
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen European Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 9.55 | $ | 0.06 | $ | (0.25 | ) | $ | (0.19 | ) | $ | (0.09 | ) | $ | – | $ | (0.09 | ) | $ | – | $ | 9.27 | ||||||||||||||
Year Ended October 31, 2015 | 10.22 | 0.20 | (0.60 | ) | (0.40 | ) | (0.16 | ) | (0.11 | ) | (0.27 | ) | – | 9.55 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 10.87 | 0.19 | (0.58 | ) | (0.39 | ) | (0.24 | ) | (0.02 | ) | (0.26 | ) | – | 10.22 | ||||||||||||||||||||||
Period Ended October 31, 2013(h) | 10.00 | 0.08 | 0.91 | 0.99 | (0.12 | ) | – | (0.12 | ) | – | 10.87 | |||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.50 | 0.08 | (0.31 | ) | (0.23 | ) | (0.09 | ) | – | (0.09 | ) | – | 9.18 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 10.19 | 0.09 | (0.56 | ) | (0.47 | ) | (0.11 | ) | (0.11 | ) | (0.22 | ) | – | 9.50 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 10.85 | 0.09 | (0.57 | ) | (0.48 | ) | (0.16 | ) | (0.02 | ) | (0.18 | ) | – | 10.19 | ||||||||||||||||||||||
Period Ended October 31, 2013(h) | 10.00 | 0.08 | 0.87 | 0.95 | (0.10 | ) | – | (0.10 | ) | – | 10.85 | |||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.55 | 0.06 | (0.27 | ) | (0.21 | ) | (0.08 | ) | – | (0.08 | ) | – | 9.26 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 10.23 | 0.14 | (0.56 | ) | (0.42 | ) | (0.15 | ) | (0.11 | ) | (0.26 | ) | – | 9.55 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 10.87 | 0.16 | (0.58 | ) | (0.42 | ) | (0.20 | ) | (0.02 | ) | (0.22 | ) | – | 10.23 | ||||||||||||||||||||||
Period Ended October 31, 2013(h) | 10.00 | 0.12 | 0.86 | 0.98 | (0.11 | ) | – | (0.11 | ) | – | 10.87 | |||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.58 | 0.08 | (0.27 | ) | (0.19 | ) | (0.10 | ) | – | (0.10 | ) | – | 9.29 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 10.24 | 0.19 | (0.55 | ) | (0.36 | ) | (0.19 | ) | (0.11 | ) | (0.30 | ) | – | 9.58 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 10.88 | 0.22 | (0.58 | ) | (0.36 | ) | (0.26 | ) | (0.02 | ) | (0.28 | ) | – | 10.24 | ||||||||||||||||||||||
Period Ended October 31, 2013(h) | 10.00 | 0.15 | 0.86 | 1.01 | (0.13 | ) | – | (0.13 | ) | – | 10.88 | |||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.56 | 0.08 | (0.26 | ) | (0.18 | ) | (0.10 | ) | – | (0.10 | ) | – | 9.28 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 10.24 | 0.21 | (0.59 | ) | (0.38 | ) | (0.19 | ) | (0.11 | ) | (0.30 | ) | – | 9.56 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 10.88 | 0.21 | (0.57 | ) | (0.36 | ) | (0.26 | ) | (0.02 | ) | (0.28 | ) | – | 10.24 | ||||||||||||||||||||||
Period Ended October 31, 2013(h) | 10.00 | 0.15 | 0.86 | 1.01 | (0.13 | ) | – | (0.13 | ) | – | 10.88 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts | listed as “–” are $0 or round to $0. |
See | accompanying Notes to Financial Statements. |
Semi-Annual Report 2016
128
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen European Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(1.98 | %) | $ | 110 | 1.37 | % | 1.32 | % | 10.69 | % | 13.77 | % | |||||||||||
(4.01 | %) | 139 | 1.35 | %(g) | 1.96 | % | 3.70 | %(g) | 14.17 | % | ||||||||||||
(3.80 | %) | 387 | 1.35 | % | 1.74 | % | 3.43 | % | 7.75 | % | ||||||||||||
10.00 | % | 63 | 1.35 | % | 1.28 | % | 4.69 | % | 3.35 | %(c) | ||||||||||||
(2.34 | %) | 109 | 2.10 | % | 1.77 | % | 11.42 | % | 13.77 | % | ||||||||||||
(4.65 | %) | 10 | 2.10 | %(g) | 0.86 | % | 4.45 | %(g) | 14.17 | % | ||||||||||||
(4.56 | %)(i) | 10 | 2.10 | % | 0.84 | % | 4.18 | % | 7.75 | % | ||||||||||||
9.61 | %(i) | 11 | 2.10 | % | 1.29 | % | 5.43 | % | 3.35 | %(c) | ||||||||||||
(2.15 | %) | 10 | 1.60 | % | 1.31 | % | 10.92 | % | 13.77 | % | ||||||||||||
(4.22 | %) | 10 | 1.60 | %(g) | 1.37 | % | 3.95 | %(g) | 14.17 | % | ||||||||||||
(4.06 | %)(i) | 11 | 1.60 | % | 1.44 | % | 3.68 | % | 7.75 | % | ||||||||||||
9.94 | %(i) | 11 | 1.60 | % | 1.92 | % | 4.94 | % | 3.35 | %(c) | ||||||||||||
(1.94 | %) | 10 | 1.10 | % | 1.81 | % | 10.42 | % | 13.77 | % | ||||||||||||
(3.65 | %) | 10 | 1.10 | %(g) | 1.87 | % | 3.45 | %(g) | 14.17 | % | ||||||||||||
(3.54 | %) | 11 | 1.10 | % | 1.94 | % | 3.18 | % | 7.75 | % | ||||||||||||
10.16 | % | 11 | 1.10 | % | 2.42 | % | 4.44 | % | 3.35 | %(c) | ||||||||||||
(1.84 | %) | 1,206 | 1.10 | % | 1.81 | % | 10.43 | % | 13.77 | % | ||||||||||||
(3.85 | %) | 1,233 | 1.10 | %(g) | 2.05 | % | 3.45 | %(g) | 14.17 | % | ||||||||||||
(3.53 | %) | 5,730 | 1.10 | % | 1.94 | % | 3.18 | % | 7.75 | % | ||||||||||||
10.16 | % | 5,926 | 1.10 | % | 2.38 | % | 4.44 | % | 3.35 | %(c) |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | For the period from March 25, 2013 (commencement of operations) through October 31, 2013. |
(i) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
129
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.15 | $ | 0.06 | $ | (0.23 | ) | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | – | $ | 11.95 | ||||||||||||
Year Ended October 31, 2015 | 13.83 | 0.17 | (1.66 | ) | (1.49 | ) | (0.19 | ) | (0.19 | ) | – | 12.15 | ||||||||||||||||||||
Year Ended October 31, 2014 | 13.83 | 0.45 | 0.01 | 0.46 | (0.46 | ) | (0.46 | ) | – | 13.83 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.01 | 0.18 | 1.80 | 1.98 | (0.16 | ) | (0.16 | ) | – | 13.83 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.14 | 0.20 | 0.88 | 1.08 | (0.21 | ) | (0.21 | ) | – | 12.01 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.00 | 0.22 | 0.13 | 0.35 | (0.21 | ) | (0.21 | ) | – | 11.14 | ||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.52 | 0.02 | (0.22 | ) | (0.20 | ) | (0.01 | ) | (0.01 | ) | – | 11.31 | ||||||||||||||||||||
Year Ended October 31, 2015 | 13.13 | 0.06 | (1.55 | ) | (1.49 | ) | (0.12 | ) | (0.12 | ) | – | 11.52 | ||||||||||||||||||||
Year Ended October 31, 2014 | 13.15 | 0.33 | 0.03 | 0.36 | (0.38 | ) | (0.38 | ) | – | 13.13 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.44 | 0.12 | 1.68 | 1.80 | (0.09 | ) | (0.09 | ) | – | 13.15 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.63 | 0.14 | 0.82 | 0.96 | (0.15 | ) | (0.15 | ) | – | 11.44 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.50 | 0.13 | 0.13 | 0.26 | (0.13 | ) | (0.13 | ) | – | 10.63 | ||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.71 | 0.04 | (0.22 | ) | (0.18 | ) | (0.02 | ) | (0.02 | ) | – | 11.51 | ||||||||||||||||||||
Year Ended October 31, 2015 | 13.34 | 0.12 | (1.59 | ) | (1.47 | ) | (0.16 | ) | (0.16 | ) | – | 11.71 | ||||||||||||||||||||
Year Ended October 31, 2014 | 13.36 | 0.40 | – | (i) | 0.40 | (0.42 | ) | (0.42 | ) | – | 13.34 | |||||||||||||||||||||
Year Ended October 31, 2013 | 11.61 | 0.16 | 1.73 | 1.89 | (0.14 | ) | (0.14 | ) | – | 13.36 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.78 | 0.19 | 0.83 | 1.02 | (0.19 | ) | (0.19 | ) | – | 11.61 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.65 | 0.18 | 0.13 | 0.31 | (0.18 | ) | (0.18 | ) | – | 10.78 | ||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.30 | 0.08 | (0.23 | ) | (0.15 | ) | (0.04 | ) | (0.04 | ) | – | 12.11 | ||||||||||||||||||||
Year Ended October 31, 2015 | 13.86 | 0.31 | (1.78 | ) | (1.47 | ) | (0.09 | ) | (0.09 | ) | – | 12.30 | ||||||||||||||||||||
Year Ended October 31, 2014 | 13.88 | 0.44 | 0.05 | 0.49 | (0.51 | ) | (0.51 | ) | – | 13.86 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.01 | 0.23 | 1.85 | 2.08 | (0.21 | ) | (0.21 | ) | – | 13.88 | ||||||||||||||||||||||
Period Ended October 31, 2012(j)(k) | 10.56 | 0.23 | 1.41 | 1.64 | (0.19 | ) | (0.19 | ) | – | 12.01 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.16 | 0.08 | (0.23 | ) | (0.15 | ) | (0.04 | ) | (0.04 | ) | – | 11.97 | ||||||||||||||||||||
Year Ended October 31, 2015 | 13.84 | 0.14 | (1.59 | ) | (1.45 | ) | (0.23 | ) | (0.23 | ) | – | 12.16 | ||||||||||||||||||||
Year Ended October 31, 2014 | 13.84 | 0.47 | 0.04 | 0.51 | (0.51 | ) | (0.51 | ) | – | 13.84 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.02 | 0.25 | 1.78 | 2.03 | (0.21 | ) | (0.21 | ) | – | 13.84 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.15 | 0.23 | 0.89 | 1.12 | (0.25 | ) | (0.25 | ) | – | 12.02 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.01 | 0.26 | 0.12 | 0.38 | (0.24 | ) | (0.24 | ) | – | 11.15 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
130
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(1.37 | %)(g) | $ | 56,335 | 1.56 | % | 0.97 | % | 1.63 | % | 12.92 | % | |||||||||||
(10.85 | %) | 58,730 | 1.55 | %(h) | 1.33 | % | 1.61 | %(h) | 31.45 | % | ||||||||||||
3.37 | % | 73,230 | 1.56 | % | 3.22 | % | 1.56 | % | 24.09 | % | ||||||||||||
16.59 | % | 83,800 | 1.57 | % | 1.42 | % | 1.57 | % | 12.87 | % | ||||||||||||
9.86 | % | 76,894 | 1.49 | % | 1.73 | % | 1.68 | % | 24.83 | % | ||||||||||||
3.12 | % | 25,480 | 1.61 | % | 1.89 | % | 1.83 | % | 25.44 | % | ||||||||||||
(1.71 | %)(g) | 1,704 | 2.19 | % | 0.34 | % | 2.31 | % | 12.92 | % | ||||||||||||
(11.43 | %) | 1,729 | 2.20 | %(h) | 0.45 | % | 2.26 | %(h) | 31.45 | % | ||||||||||||
2.78 | % | 4,165 | 2.19 | % | 2.50 | % | 2.19 | % | 24.09 | % | ||||||||||||
15.83 | % | 5,278 | 2.19 | % | 0.96 | % | 2.19 | % | 12.87 | % | ||||||||||||
9.11 | % | 3,348 | 2.20 | % | 1.28 | % | 2.39 | % | 24.83 | % | ||||||||||||
2.43 | % | 2,437 | 2.32 | % | 1.18 | % | 2.54 | % | 25.44 | % | ||||||||||||
(1.52 | %)(g) | 1,818 | 1.88 | % | 0.75 | % | 1.95 | % | 12.92 | % | ||||||||||||
(11.13 | %) | 1,457 | 1.88 | %(h) | 0.96 | % | 1.94 | %(h) | 31.45 | % | ||||||||||||
3.06 | % | 1,986 | 1.85 | % | 2.96 | % | 1.85 | % | 24.09 | % | ||||||||||||
16.35 | % | 2,312 | 1.76 | % | 1.26 | % | 1.76 | % | 12.87 | % | ||||||||||||
9.61 | % | 2,265 | 1.71 | % | 1.70 | % | 1.90 | % | 24.83 | % | ||||||||||||
2.85 | % | 595 | 1.82 | % | 1.59 | % | 2.04 | % | 25.44 | % | ||||||||||||
(1.17 | %)(g) | 1 | 1.19 | % | 1.34 | % | 1.26 | % | 12.92 | % | ||||||||||||
(10.60 | %) | 1 | 1.26 | %(h) | 2.29 | % | 1.33 | %(h) | 31.45 | % | ||||||||||||
3.62 | %(g) | 2 | 1.19 | % | 3.12 | % | 1.19 | % | 24.09 | % | ||||||||||||
17.44 | %(g) | 1 | 1.19 | % | 1.80 | % | 1.20 | % | 12.87 | % | ||||||||||||
15.65 | %(g) | 1 | 1.19 | % | 2.28 | % | 1.39 | % | 24.83 | % | ||||||||||||
(1.19 | %)(g) | 33,751 | 1.19 | % | 1.37 | % | 1.26 | % | 12.92 | % | ||||||||||||
(10.55 | %) | 30,678 | 1.19 | %(h) | 1.08 | % | 1.25 | %(h) | 31.45 | % | ||||||||||||
3.77 | %(g) | 78,381 | 1.19 | % | 3.36 | % | 1.19 | % | 24.09 | % | ||||||||||||
17.01 | %(g) | 67,843 | 1.19 | % | 1.89 | % | 1.19 | % | 12.87 | % | ||||||||||||
10.16 | % | 39,134 | 1.20 | % | 1.95 | % | 1.39 | % | 24.83 | % | ||||||||||||
3.40 | % | 10,491 | 1.32 | % | 2.29 | % | 1.54 | % | 25.44 | % |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | Includes interest expense that amounts to less than 0.01%. |
(i) | Less than $0.005 per share. |
(j) | For the period from December 19, 2011 (commencement of operations) through October 31, 2012. |
(k) | There were no shareholders in the class for the period from April 23, 2009 through December 18, 2011. The financial highlights information presented is for two separate periods of time when shareholders were invested in the class. See Note 6 for Financial Highlight information prior to year ended October 31, 2009. |
2016 Semi-Annual Report
131
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Natural Resources Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from | Net Investment Income | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 11.52 | $ | 0.08 | $ | 0.34 | $ | 0.42 | $ | (0.04 | ) | $ | (0.04 | ) | $ | – | $ | 11.90 | ||||||||||||||
Year Ended October 31, 2015 | 15.35 | 0.23 | (3.73 | ) | (3.50 | ) | (0.33 | ) | (0.33 | ) | – | 11.52 | ||||||||||||||||||||
Year Ended October 31, 2014 | 16.37 | 0.22 | (0.98 | ) | (0.76 | ) | (0.26 | ) | (0.26 | ) | – | 15.35 | ||||||||||||||||||||
Year Ended October 31, 2013 | 16.30 | 0.16 | 0.04 | 0.20 | (0.13 | ) | (0.13 | ) | – | 16.37 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 16.23 | 0.17 | 0.07 | 0.24 | (0.17 | ) | (0.17 | ) | – | 16.30 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 16.60 | 0.17 | (0.41 | ) | (0.24 | ) | (0.13 | ) | (0.13 | ) | – | 16.23 | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.94 | 0.04 | 0.33 | 0.37 | (0.02 | ) | (0.02 | ) | – | 11.29 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 14.59 | 0.13 | (3.54 | ) | (3.41 | ) | (0.24 | ) | (0.24 | ) | – | 10.94 | ||||||||||||||||||||
Year Ended October 31, 2014 | 15.56 | 0.10 | (0.93 | ) | (0.83 | ) | (0.14 | ) | (0.14 | ) | – | 14.59 | ||||||||||||||||||||
Year Ended October 31, 2013 | 15.52 | 0.05 | 0.04 | 0.09 | (0.05 | ) | (0.05 | ) | – | 15.56 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 15.50 | 0.05 | 0.08 | 0.13 | (0.11 | ) | (0.11 | ) | – | 15.52 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 15.86 | 0.04 | (0.38 | ) | (0.34 | ) | (0.02 | ) | (0.02 | ) | – | 15.50 | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.33 | 0.06 | 0.34 | 0.40 | (0.03 | ) | (0.03 | ) | – | 11.70 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 15.11 | 0.20 | (3.68 | ) | (3.48 | ) | (0.30 | ) | (0.30 | ) | – | 11.33 | ||||||||||||||||||||
Year Ended October 31, 2014 | 16.11 | 0.18 | (0.96 | ) | (0.78 | ) | (0.22 | ) | (0.22 | ) | – | 15.11 | ||||||||||||||||||||
Year Ended October 31, 2013 | 16.05 | 0.13 | 0.04 | 0.17 | (0.11 | ) | (0.11 | ) | – | 16.11 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 15.99 | 0.14 | 0.07 | 0.21 | (0.15 | ) | (0.15 | ) | – | 16.05 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 16.36 | 0.13 | (0.40 | ) | (0.27 | ) | (0.10 | ) | (0.10 | ) | – | 15.99 | ||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.68 | 0.10 | 0.34 | 0.44 | (0.05 | ) | (0.05 | ) | – | 12.07 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 15.55 | 0.29 | (3.78 | ) | (3.49 | ) | (0.38 | ) | (0.38 | ) | – | 11.68 | ||||||||||||||||||||
Year Ended October 31, 2014 | 16.60 | 0.28 | (1.01 | ) | (0.73 | ) | (0.32 | ) | (0.32 | ) | – | 15.55 | ||||||||||||||||||||
Year Ended October 31, 2013 | 16.51 | 0.21 | 0.06 | 0.27 | (0.18 | ) | (0.18 | ) | – | 16.60 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 16.43 | 0.22 | 0.08 | 0.30 | (0.22 | ) | (0.22 | ) | – | 16.51 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 16.81 | 0.19 | (0.38 | ) | (0.19 | ) | (0.19 | ) | (0.19 | ) | – | 16.43 | ||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.69 | 0.10 | 0.34 | 0.44 | (0.05 | ) | (0.05 | ) | – | 12.08 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 15.56 | 0.23 | (3.72 | ) | (3.49 | ) | (0.38 | ) | (0.38 | ) | – | 11.69 | ||||||||||||||||||||
Year Ended October 31, 2014 | 16.61 | 0.26 | (0.99 | ) | (0.73 | ) | (0.32 | ) | (0.32 | ) | – | 15.56 | ||||||||||||||||||||
Year Ended October 31, 2013 | 16.54 | 0.18 | 0.07 | 0.25 | (0.18 | ) | (0.18 | ) | – | 16.61 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 16.47 | 0.21 | 0.08 | 0.29 | (0.22 | ) | (0.22 | ) | – | 16.54 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 16.85 | 0.23 | (0.42 | ) | (0.19 | ) | (0.19 | ) | (0.19 | ) | – | 16.47 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
132
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Natural Resources Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
3.72 | % | $ | 10,149 | 1.52 | %(g) | 1.54 | % | 2.09 | %(g) | 12.19 | % | |||||||||||
(23.00 | %) | 8,838 | 1.35 | %(g)(h) | 1.72 | %(h) | 2.12 | %(g) | 31.83 | % | ||||||||||||
(4.75 | %) | 15,053 | 1.48 | % | 1.30 | % | 1.84 | % | 2.02 | % | ||||||||||||
1.28 | % | 21,396 | 1.49 | % | 1.00 | % | 1.64 | % | 12.50 | % | ||||||||||||
1.54 | % | 28,898 | 1.48 | % | 1.06 | % | 1.51 | % | 7.98 | % | ||||||||||||
(1.45 | %) | 34,936 | 1.45 | % | 0.96 | % | 1.49 | % | 6.30 | % | ||||||||||||
3.42 | % | 1,578 | 2.16 | %(g) | 0.90 | % | 2.78 | %(g) | 12.19 | % | ||||||||||||
(23.54 | %) | 1,639 | 2.03 | %(g)(h) | 1.05 | %(h) | 2.80 | %(g) | 31.83 | % | ||||||||||||
(5.39 | %) | 2,793 | 2.16 | % | 0.62 | % | 2.52 | % | 2.02 | % | ||||||||||||
0.58 | % | 4,345 | 2.16 | % | 0.32 | % | 2.31 | % | 12.50 | % | ||||||||||||
0.86 | % | 5,786 | 2.16 | % | 0.35 | % | 2.19 | % | 7.98 | % | ||||||||||||
(2.17 | %) | 8,353 | 2.13 | % | 0.24 | % | 2.16 | % | 6.30 | % | ||||||||||||
3.62 | % | 2,146 | 1.76 | %(g) | 1.23 | % | 2.33 | %(g) | 12.19 | % | ||||||||||||
(23.22 | %) | 2,473 | 1.60 | %(g)(h) | 1.52 | %(h) | 2.37 | %(g) | 31.83 | % | ||||||||||||
(4.94 | %) | 3,134 | 1.70 | % | 1.09 | % | 2.06 | % | 2.02 | % | ||||||||||||
1.06 | % | 3,942 | 1.70 | % | 0.80 | % | 1.85 | % | 12.50 | % | ||||||||||||
1.34 | % | 5,279 | 1.69 | % | 0.90 | % | 1.72 | % | 7.98 | % | ||||||||||||
(1.69 | %) | 5,677 | 1.67 | % | 0.73 | % | 1.71 | % | 6.30 | % | ||||||||||||
3.85 | % | 826 | 1.19 | %(g) | 1.90 | % | 1.76 | %(g) | 12.19 | % | ||||||||||||
(22.68 | %) | 312 | 1.03 | %(g)(h) | 2.11 | %(h) | 1.80 | %(g) | 31.83 | % | ||||||||||||
(4.52 | %) | 672 | 1.16 | % | 1.66 | % | 1.53 | % | 2.02 | % | ||||||||||||
1.67 | % | 816 | 1.16 | % | 1.31 | % | 1.31 | % | 12.50 | % | ||||||||||||
1.90 | % | 1,156 | 1.17 | % | 1.33 | % | 1.20 | % | 7.98 | % | ||||||||||||
(1.18 | %) | 1,564 | 1.12 | % | 1.09 | % | 1.16 | % | 6.30 | % | ||||||||||||
3.85 | % | 6,855 | 1.16 | %(g) | 1.94 | % | 1.75 | %(g) | 12.19 | % | ||||||||||||
(22.67 | %) | 5,708 | 1.03 | %(g)(h) | 1.79 | %(h) | 1.80 | %(g) | 31.83 | % | ||||||||||||
(4.52 | %) | 1,524 | 1.16 | % | 1.54 | % | 1.52 | % | 2.02 | % | ||||||||||||
1.55 | % | 2,206 | 1.16 | % | 1.10 | % | 1.31 | % | 12.50 | % | ||||||||||||
1.85 | % | 6,781 | 1.16 | % | 1.31 | % | 1.19 | % | 7.98 | % | ||||||||||||
(1.17 | %) | 9,968 | 1.12 | % | 1.32 | % | 1.16 | % | 6.30 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | Includes 0.13% reimbursement from Aberdeen relating to certain Transfer Agent expenses paid by the Fund that are not attributable to the Fund. |
2016 Semi-Annual Report
133
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen International Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Redemption Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.52 | $ | 0.09 | $ | (0.31 | ) | $ | (0.22 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | – | $ | 12.26 | ||||||||||||
Year Ended October 31, 2015 | 14.85 | 0.23 | (2.29 | ) | (2.06 | ) | (0.27 | ) | (0.27 | ) | – | 12.52 | ||||||||||||||||||||
Year Ended October 31, 2014 | 15.34 | 0.50 | (0.42 | ) | 0.08 | (0.57 | ) | (0.57 | ) | – | 14.85 | |||||||||||||||||||||
Year Ended October 31, 2013 | 13.57 | 0.26 | 1.73 | 1.99 | (0.22 | ) | (0.22 | ) | – | 15.34 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 13.00 | 0.31 | 0.56 | 0.87 | (0.30 | ) | (0.30 | ) | – | 13.57 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 13.02 | 0.30 | (0.04 | ) | 0.26 | (0.28 | ) | (0.28 | ) | – | 13.00 | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.79 | 0.05 | (0.30 | ) | (0.25 | ) | (0.01 | ) | (0.01 | ) | – | 11.53 | ||||||||||||||||||||
Year Ended October 31, 2015 | 14.01 | 0.13 | (2.16 | ) | (2.03 | ) | (0.19 | ) | (0.19 | ) | – | 11.79 | ||||||||||||||||||||
Year Ended October 31, 2014 | 14.51 | 0.39 | (0.42 | ) | (0.03 | ) | (0.47 | ) | (0.47 | ) | – | 14.01 | ||||||||||||||||||||
Year Ended October 31, 2013 | 12.86 | 0.15 | 1.64 | 1.79 | (0.14 | ) | (0.14 | ) | – | 14.51 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 12.35 | 0.20 | 0.54 | 0.74 | (0.23 | ) | (0.23 | ) | – | 12.86 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 12.38 | 0.19 | (0.03 | ) | 0.16 | (0.19 | ) | (0.19 | ) | – | 12.35 | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.97 | 0.06 | (0.29 | ) | (0.23 | ) | (0.03 | ) | (0.03 | ) | – | 11.71 | ||||||||||||||||||||
Year Ended October 31, 2015 | 14.22 | 0.18 | (2.20 | ) | (2.02 | ) | (0.23 | ) | (0.23 | ) | – | 11.97 | ||||||||||||||||||||
Year Ended October 31, 2014 | 14.71 | 0.46 | (0.42 | ) | 0.04 | (0.53 | ) | (0.53 | ) | – | 14.22 | |||||||||||||||||||||
Year Ended October 31, 2013 | 13.03 | 0.21 | 1.65 | 1.86 | (0.18 | ) | (0.18 | ) | – | 14.71 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 12.49 | 0.27 | 0.55 | 0.82 | (0.28 | ) | (0.28 | ) | – | 13.03 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 12.51 | 0.25 | (0.01 | ) | 0.24 | (0.26 | ) | (0.26 | ) | – | 12.49 | |||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.77 | 0.10 | (0.32 | ) | (0.22 | ) | (0.04 | ) | (0.04 | ) | – | 12.51 | ||||||||||||||||||||
Year Ended October 31, 2015 | 15.16 | 0.27 | (2.36 | ) | (2.09 | ) | (0.30 | ) | (0.30 | ) | – | 12.77 | ||||||||||||||||||||
Year Ended October 31, 2014 | 15.64 | 0.56 | (0.44 | ) | 0.12 | (0.60 | ) | (0.60 | ) | – | 15.16 | |||||||||||||||||||||
Year Ended October 31, 2013 | 13.84 | 0.28 | 1.77 | 2.05 | (0.25 | ) | (0.25 | ) | – | 15.64 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 13.25 | 0.35 | 0.56 | 0.91 | (0.32 | ) | (0.32 | ) | – | 13.84 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 13.26 | 0.33 | (0.04 | ) | 0.29 | (0.30 | ) | (0.30 | ) | – | 13.25 | |||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.82 | 0.11 | (0.32 | ) | (0.21 | ) | (0.05 | ) | (0.05 | ) | – | 12.56 | ||||||||||||||||||||
Year Ended October 31, 2015 | 15.21 | 0.29 | (2.36 | ) | (2.07 | ) | (0.32 | ) | (0.32 | ) | – | 12.82 | ||||||||||||||||||||
Year Ended October 31, 2014 | 15.70 | 0.58 | (0.45 | ) | 0.13 | (0.62 | ) | (0.62 | ) | – | 15.21 | |||||||||||||||||||||
Year Ended October 31, 2013 | 13.88 | 0.32 | 1.76 | 2.08 | (0.26 | ) | (0.26 | ) | – | 15.70 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 13.29 | 0.41 | 0.51 | 0.92 | (0.33 | ) | (0.33 | ) | – | 13.88 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 13.30 | 0.34 | (0.03 | ) | 0.31 | (0.32 | ) | (0.32 | ) | – | 13.29 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
134
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen International Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(1.76 | %)(g) | $ | 80,233 | 1.43 | %(h) | 1.51 | % | 1.43 | %(h) | 20.42 | % | |||||||||||
(14.02 | %) | 91,902 | 1.32 | %(h)(i) | 1.65 | %(i) | 1.35 | %(h) | 14.52 | % | ||||||||||||
0.49 | % | 148,018 | 1.33 | % | 3.30 | % | 1.33 | % | 10.08 | % | ||||||||||||
14.75 | % | 222,275 | 1.33 | % | 1.77 | % | 1.33 | % | 23.35 | % | ||||||||||||
6.84 | % | 200,574 | 1.37 | % | 2.37 | % | 1.37 | % | 15.29 | % | ||||||||||||
1.96 | % | 158,454 | 1.57 | % | 2.22 | % | 1.57 | % | 22.15 | % | ||||||||||||
(2.09 | %)(g) | 17,445 | 2.09 | %(h) | 0.83 | % | 2.11 | %(h) | 20.42 | % | ||||||||||||
(14.61 | %) | 22,999 | 2.01 | %(h)(i) | 0.97 | %(i) | 2.04 | %(h) | 14.52 | % | ||||||||||||
(0.24 | %) | 35,696 | 2.03 | % | 2.68 | % | 2.03 | % | 10.08 | % | ||||||||||||
14.02 | % | 42,861 | 2.01 | % | 1.08 | % | 2.01 | % | 23.35 | % | ||||||||||||
6.09 | % | 35,754 | 2.05 | % | 1.64 | % | 2.05 | % | 15.29 | % | ||||||||||||
1.29 | % | 28,322 | 2.24 | % | 1.48 | % | 2.24 | % | 22.15 | % | ||||||||||||
(1.93 | %)(g) | 9,281 | 1.71 | %(h) | 1.09 | % | 1.71 | %(h) | 20.42 | % | ||||||||||||
(14.32 | %) | 14,095 | 1.62 | %(h)(i) | 1.34 | %(i) | 1.65 | %(h) | 14.52 | % | ||||||||||||
0.26 | % | 16,938 | 1.62 | % | 3.13 | % | 1.62 | % | 10.08 | % | ||||||||||||
14.42 | % | 17,303 | 1.59 | % | 1.51 | % | 1.59 | % | 23.35 | % | ||||||||||||
6.67 | % | 11,531 | 1.58 | % | 2.10 | % | 1.58 | % | 15.29 | % | ||||||||||||
1.87 | % | 10,395 | 1.75 | % | 1.97 | % | 1.75 | % | 22.15 | % | ||||||||||||
(1.69 | %) | 107,780 | 1.23 | %(h) | 1.65 | % | 1.23 | %(h) | 20.42 | % | ||||||||||||
(13.97 | %) | 156,489 | 1.15 | %(h)(i) | 1.89 | %(i) | 1.18 | %(h) | 14.52 | % | ||||||||||||
0.75 | % | 185,166 | 1.16 | % | 3.57 | % | 1.16 | % | 10.08 | % | ||||||||||||
14.91 | % | 206,212 | 1.13 | % | 1.92 | % | 1.13 | % | 23.35 | % | ||||||||||||
7.07 | % | 191,580 | 1.17 | % | 2.61 | % | 1.17 | % | 15.29 | % | ||||||||||||
2.19 | % | 219,773 | 1.37 | % | 2.38 | % | 1.37 | % | 22.15 | % | ||||||||||||
(1.62 | %)(g) | 277,986 | 1.07 | %(h) | 1.92 | % | 1.07 | %(h) | 20.42 | % | ||||||||||||
(13.80 | %) | 332,542 | 1.01 | %(h)(i) | 2.04 | %(i) | 1.04 | %(h) | 14.52 | % | ||||||||||||
0.81 | % | 496,344 | 1.03 | % | 3.73 | % | 1.03 | % | 10.08 | % | ||||||||||||
15.14 | % | 558,986 | 1.01 | % | 2.13 | % | 1.01 | % | 23.35 | % | ||||||||||||
7.18 | % | 475,051 | 1.01 | % | 3.02 | % | 1.01 | % | 15.29 | % | ||||||||||||
2.32 | % | 14,491 | 1.24 | % | 2.50 | % | 1.24 | % | 22.15 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | Includes interest expense that amounts to less than 0.01%. |
(i) | Includes 0.03% reimbursement from Aberdeen relating to certain Transfer Agent expenses paid by the Fund that are not attributable to the Fund. |
2016 Semi-Annual Report
135
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen International Small Cap Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from | Net Investment Income | Net Realized Gains | Total Distributions | Redemption Fees | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 26.87 | $ | 0.03 | $ | 0.61 | $ | 0.64 | $ | (0.12 | ) | $ | (2.52 | ) | $ | (2.64 | ) | $ | – | $ | 24.87 | |||||||||||||||
Year Ended October 31, 2015 | 29.64 | 0.48 | (1.17 | ) | (0.69 | ) | (0.52 | ) | (1.56 | ) | (2.08 | ) | – | 26.87 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 28.71 | 0.19 | 1.32 | 1.51 | (0.27 | ) | (0.31 | ) | (0.58 | ) | – | 29.64 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 25.95 | 0.17 | 2.65 | 2.82 | (0.07 | ) | – | (0.07 | ) | 0.01 | 28.71 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 21.68 | 0.14 | 4.48 | 4.62 | (0.35 | ) | – | (0.35 | ) | – | 25.95 | |||||||||||||||||||||||||
Year Ended October 31, 2011 | 21.67 | 0.31 | (0.14 | ) | 0.17 | (0.16 | ) | – | (0.16 | ) | – | 21.68 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 25.04 | (0.06 | ) | 0.57 | 0.51 | (0.09 | ) | (2.52 | ) | (2.61 | ) | – | 22.94 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 27.81 | 0.27 | (1.11 | ) | (0.84 | ) | (0.37 | ) | (1.56 | ) | (1.93 | ) | – | 25.04 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 26.97 | (0.01 | ) | 1.24 | 1.23 | (0.08 | ) | (0.31 | ) | (0.39 | ) | – | 27.81 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 24.50 | 0.02 | 2.46 | 2.48 | (0.02 | ) | – | (0.02 | ) | 0.01 | 26.97 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 20.46 | (0.04 | ) | 4.27 | 4.23 | (0.19 | ) | – | (0.19 | ) | – | 24.50 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 20.47 | 0.17 | (0.16 | ) | 0.01 | (0.02 | ) | – | (0.02 | ) | – | 20.46 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 25.81 | (0.01 | ) | 0.57 | 0.56 | (0.10 | ) | (2.52 | ) | (2.62 | ) | – | 23.75 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 28.57 | 0.37 | (1.13 | ) | (0.76 | ) | (0.44 | ) | (1.56 | ) | (2.00 | ) | – | 25.81 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 27.68 | 0.09 | 1.30 | 1.39 | (0.19 | ) | (0.31 | ) | (0.50 | ) | – | 28.57 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 25.06 | 0.15 | 2.51 | 2.66 | (0.05 | ) | – | (0.05 | ) | 0.01 | 27.68 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 20.95 | 0.06 | 4.34 | 4.40 | (0.29 | ) | – | (0.29 | ) | – | 25.06 | |||||||||||||||||||||||||
Year Ended October 31, 2011 | 20.98 | 0.24 | (0.13 | ) | 0.11 | (0.14 | ) | – | (0.14 | ) | – | 20.95 | ||||||||||||||||||||||||
Institutional Service Class Shares |
| |||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 26.87 | (0.01 | ) | 0.67 | 0.66 | (0.12 | ) | (2.52 | ) | (2.64 | ) | – | 24.89 | |||||||||||||||||||||||
Year Ended October 31, 2015 | 29.64 | 0.48 | (1.17 | ) | (0.69 | ) | (0.52 | ) | (1.56 | ) | (2.08 | ) | – | 26.87 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 28.72 | 0.23 | 1.31 | 1.54 | (0.31 | ) | (0.31 | ) | (0.62 | ) | – | 29.64 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 25.95 | 0.31 | 2.56 | 2.87 | (0.11 | ) | – | (0.11 | ) | 0.01 | 28.72 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 21.74 | 0.16 | 4.47 | 4.63 | (0.42 | ) | – | (0.42 | ) | – | 25.95 | |||||||||||||||||||||||||
Year Ended October 31, 2011 | 21.60 | 0.24 | 0.11 | 0.35 | (0.21 | ) | – | (0.21 | ) | – | 21.74 | |||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 26.87 | 0.04 | 0.64 | 0.68 | (0.14 | ) | (2.52 | ) | (2.66 | ) | – | 24.89 | ||||||||||||||||||||||||
Year Ended October 31, 2015 | 29.66 | 0.36 | (0.99 | ) | (0.63 | ) | (0.60 | ) | (1.56 | ) | (2.16 | ) | – | 26.87 | ||||||||||||||||||||||
Year Ended October 31, 2014 | 28.74 | 0.29 | 1.32 | 1.61 | (0.38 | ) | (0.31 | ) | (0.69 | ) | – | 29.66 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 25.98 | 0.25 | 2.66 | 2.91 | (0.16 | ) | – | (0.16 | ) | 0.01 | 28.74 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 21.72 | 0.20 | 4.48 | 4.68 | (0.42 | ) | – | (0.42 | ) | – | 25.98 | |||||||||||||||||||||||||
Year Ended October 31, 2011 | 21.69 | 0.38 | (0.14 | ) | 0.24 | (0.21 | ) | – | (0.21 | ) | – | 21.72 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
136
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen International Small Cap Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
2.97 | %(g) | $ | 50,678 | 1.62 | %(h) | 0.24 | % | 2.10 | %(h) | 29.79 | % | |||||||||||
(2.39 | %) | 53,726 | 1.61 | % | 1.70 | % | 1.84 | % | 12.11 | % | ||||||||||||
5.32 | % | 64,189 | 1.60 | % | 0.65 | % | 1.73 | % | 12.93 | % | ||||||||||||
10.91 | % | 80,191 | 1.61 | % | 0.63 | % | 1.76 | % | 34.85 | % | ||||||||||||
21.77 | % | 60,672 | 1.59 | % | 0.62 | % | 2.04 | % | 22.21 | % | ||||||||||||
0.76 | % | 50,797 | 1.56 | % | 1.38 | % | 2.04 | % | 21.77 | % | ||||||||||||
2.65 | %(g) | 1,065 | 2.30 | %(h) | (0.54 | %) | 2.82 | %(h) | 29.79 | % | ||||||||||||
(3.10 | %) | 1,404 | 2.30 | % | 1.03 | % | 2.53 | % | 12.11 | % | ||||||||||||
4.60 | % | 1,646 | 2.30 | % | (0.03 | %) | 2.43 | % | 12.93 | % | ||||||||||||
10.17 | % | 2,208 | 2.30 | % | 0.08 | % | 2.45 | % | 34.85 | % | ||||||||||||
20.92 | % | 521 | 2.30 | % | (0.17 | %) | 2.75 | % | 22.21 | % | ||||||||||||
0.04 | % | 240 | 2.30 | % | 0.79 | % | 2.74 | % | 21.77 | % | ||||||||||||
2.79 | %(g) | 597 | 1.94 | %(h) | (0.07 | %) | 2.42 | %(h) | 29.79 | % | ||||||||||||
(2.74 | %) | 623 | 1.91 | % | 1.38 | % | 2.14 | % | 12.11 | % | ||||||||||||
5.07 | % | 866 | 1.86 | % | 0.32 | % | 1.99 | % | 12.93 | % | ||||||||||||
10.67 | % | 1,749 | 1.82 | % | 0.55 | % | 1.97 | % | 34.85 | % | ||||||||||||
21.44 | % | 499 | 1.86 | % | 0.25 | % | 2.31 | % | 22.21 | % | ||||||||||||
0.53 | % | 184 | 1.85 | % | 1.09 | % | 2.34 | % | 21.77 | % | ||||||||||||
3.06 | % | 357 | 1.53 | %(h) | (0.11 | %) | 2.01 | %(h) | 29.79 | % | ||||||||||||
(2.38 | %) | 1,359 | 1.55 | % | 1.71 | % | 1.78 | % | 12.11 | % | ||||||||||||
5.41 | % | 2,201 | 1.54 | % | 0.78 | % | 1.67 | % | 12.93 | % | ||||||||||||
11.11 | % | 1,803 | 1.47 | % | 1.10 | % | 1.62 | % | 34.85 | % | ||||||||||||
21.88 | % | 45 | 1.54 | % | 0.69 | % | 1.99 | % | 22.21 | % | ||||||||||||
0.98 | % | 34 | 1.30 | % | 1.11 | % | 1.80 | % | 21.77 | % | ||||||||||||
3.16 | % | 24,799 | 1.30 | %(h) | 0.34 | % | 1.80 | %(h) | 29.79 | % | ||||||||||||
(2.16 | %) | 48,927 | 1.30 | % | 1.27 | % | 1.53 | % | 12.11 | % | ||||||||||||
5.67 | % | 189,864 | 1.30 | % | 0.99 | % | 1.43 | % | 12.93 | % | ||||||||||||
11.29 | % | 212,642 | 1.30 | % | 0.91 | % | 1.45 | % | 34.85 | % | ||||||||||||
22.13 | % | 24,276 | 1.30 | % | 0.87 | % | 1.75 | % | 22.21 | % | ||||||||||||
1.03 | % | 3,210 | 1.30 | % | 1.70 | % | 1.74 | % | 21.77 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | Includes interest expense that amounts to less than 0.01%. |
2016 Semi-Annual Report
137
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Japanese Equities Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from | Net Investment Income | Total Distributions | Net Asset Value, End of Period | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016(g) | $ | 10.00 | $ | 0.03 | $ | (0.06 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 9.96 | ||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016(g) | 10.00 | (0.01 | )(h) | (0.06 | ) | (0.07 | ) | – | – | 9.93 | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016(g) | 10.00 | 0.02 | (0.07 | ) | (0.05 | ) | – | – | 9.95 | |||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016(g) | 10.00 | 0.04 | (0.06 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | 9.97 | |||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016(g) | 10.00 | 0.04 | (0.06 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | 9.97 |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
138
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Japanese Equities Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(0.33 | %) | $ | 10 | 1.31 | % | 0.79 | % | 18.23 | % | 5.33 | % | |||||||||||
(0.70 | %) | 10 | 2.00 | % | 0.10 | % | 18.97 | % | 5.33 | % | ||||||||||||
(0.45 | %) | 10 | 1.56 | % | 0.54 | % | 18.47 | % | 5.33 | % | ||||||||||||
(0.21 | %)(i) | 10 | 1.06 | % | 1.04 | % | 17.97 | % | 5.33 | % | ||||||||||||
(0.21 | %) | 957 | 1.00 | % | 1.11 | % | 17.97 | % | 5.33 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from November 30, 2015 (commencement of operations) through April 30, 2016. |
(h) | Less than $0.005 per share. |
(i) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
139
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Latin American Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from | Net Investment Income | Total Distributions | Net Asset Value, End of Period | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 5.42 | $ | 0.05 | $ | 0.92 | $ | 0.97 | $ | (0.03 | ) | $ | (0.03 | ) | $ | 6.36 | ||||||||||||
Year Ended October 31, 2015 | 7.93 | 0.06 | (2.49 | ) | (2.43 | ) | (0.08 | ) | (0.08 | ) | 5.42 | |||||||||||||||||
Year Ended October 31, 2014 | 9.18 | 0.12 | (1.24 | ) | (1.12 | ) | (0.13 | ) | (0.13 | ) | 7.93 | |||||||||||||||||
Period Ended October 31, 2013(g) | 10.00 | 0.05 | (0.83 | ) | (0.78 | ) | (0.04 | ) | (0.04 | ) | 9.18 | |||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 5.40 | 0.04 | 0.91 | 0.95 | (0.01 | ) | (0.01 | ) | 6.34 | |||||||||||||||||||
Year Ended October 31, 2015 | 7.91 | 0.03 | (2.50 | ) | (2.47 | ) | (0.04 | ) | (0.04 | ) | 5.40 | |||||||||||||||||
Year Ended October 31, 2014 | 9.16 | 0.06 | (1.23 | ) | (1.17 | ) | (0.08 | ) | (0.08 | ) | 7.91 | |||||||||||||||||
Period Ended October 31, 2013(g) | 10.00 | 0.04 | (0.86 | ) | (0.82 | ) | (0.02 | ) | (0.02 | ) | 9.16 | |||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 5.41 | 0.04 | 0.93 | 0.97 | (0.02 | ) | (0.02 | ) | 6.36 | |||||||||||||||||||
Year Ended October 31, 2015 | 7.93 | 0.07 | (2.51 | ) | (2.44 | ) | (0.08 | ) | (0.08 | ) | 5.41 | |||||||||||||||||
Year Ended October 31, 2014 | 9.18 | 0.11 | (1.25 | ) | (1.14 | ) | (0.11 | ) | (0.11 | ) | 7.93 | |||||||||||||||||
Period Ended October 31, 2013(g) | 10.00 | 0.06 | (0.85 | ) | (0.79 | ) | (0.03 | ) | (0.03 | ) | 9.18 | |||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 5.43 | 0.05 | 0.93 | 0.98 | (0.04 | ) | (0.04 | ) | 6.37 | |||||||||||||||||||
Year Ended October 31, 2015 | 7.94 | 0.10 | (2.51 | ) | (2.41 | ) | (0.10 | ) | (0.10 | ) | 5.43 | |||||||||||||||||
Year Ended October 31, 2014 | 9.19 | 0.15 | (1.24 | ) | (1.09 | ) | (0.16 | ) | (0.16 | ) | 7.94 | |||||||||||||||||
Period Ended October 31, 2013(g) | 10.00 | 0.09 | (0.86 | ) | (0.77 | ) | (0.04 | ) | (0.04 | ) | 9.19 | |||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 5.43 | 0.06 | 0.92 | 0.98 | (0.04 | ) | (0.04 | ) | 6.37 | |||||||||||||||||||
Year Ended October 31, 2015 | 7.94 | 0.10 | (2.51 | ) | (2.41 | ) | (0.10 | ) | (0.10 | ) | 5.43 | |||||||||||||||||
Year Ended October 31, 2014 | 9.19 | 0.15 | (1.24 | ) | (1.09 | ) | (0.16 | ) | (0.16 | ) | 7.94 | |||||||||||||||||
Period Ended October 31, 2013(g) | 10.00 | 0.09 | (0.86 | ) | (0.77 | ) | (0.04 | ) | (0.04 | ) | 9.19 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
140
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Latin American Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
18.03 | % | $ | 23 | 1.62 | % | 1.77 | % | 5.81 | % | 15.17 | % | |||||||||||
(30.78 | %) | 18 | 1.63 | % | 0.97 | % | 5.27 | % | 11.97 | % | ||||||||||||
(12.22 | %) | 57 | 1.55 | % | 1.47 | % | 4.63 | % | 3.79 | % | ||||||||||||
(7.82 | %) | 28 | 1.55 | % | 1.00 | % | 6.20 | % | 5.04 | % | ||||||||||||
17.76 | % | 30 | 2.30 | % | 1.65 | % | 6.58 | % | 15.17 | % | ||||||||||||
(31.35 | %) | 7 | 2.30 | % | 0.42 | % | 5.94 | % | 11.97 | % | ||||||||||||
(12.83 | %) | 25 | 2.31 | % | 0.65 | % | 5.38 | % | 3.79 | % | ||||||||||||
(8.21 | %) | 9 | 2.30 | % | 0.67 | % | 6.96 | % | 5.04 | % | ||||||||||||
18.11 | % | 7 | 1.80 | % | 1.59 | % | 5.99 | % | 15.17 | % | ||||||||||||
(31.01 | %) | 6 | 1.80 | % | 1.04 | % | 5.44 | % | 11.97 | % | ||||||||||||
(12.48 | %)(h) | 8 | 1.77 | % | 1.26 | % | 4.85 | % | 3.79 | % | ||||||||||||
(7.90 | %)(h) | 9 | 1.80 | % | 1.17 | % | 6.45 | % | 5.04 | % | ||||||||||||
18.21 | % | 7 | 1.30 | % | 2.09 | % | 5.49 | % | 15.17 | % | ||||||||||||
(30.56 | %) | 6 | 1.30 | % | 1.54 | % | 4.94 | % | 11.97 | % | ||||||||||||
(11.99 | %) | 8 | 1.29 | % | 1.75 | % | 4.36 | % | 3.79 | % | ||||||||||||
(7.68 | %) | 9 | 1.30 | % | 1.67 | % | 5.96 | % | 5.04 | % | ||||||||||||
18.21 | % | 3,369 | 1.30 | % | 2.09 | % | 5.49 | % | 15.17 | % | ||||||||||||
(30.56 | %) | 2,818 | 1.30 | % | 1.54 | % | 4.94 | % | 11.97 | % | ||||||||||||
(11.99 | %) | 4,051 | 1.30 | % | 1.73 | % | 4.36 | % | 3.79 | % | ||||||||||||
(7.68 | %) | 4,589 | 1.30 | % | 1.67 | % | 5.96 | % | 5.04 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from March 25, 2013 (commencement of operations) through October 31, 2013. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
141
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Mid Cap Equity Fund
Investment Activities | Distributions | |||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Net Asset Value, End of Period | ||||||||||||||||
Class A Shares | ||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | $ | 10.00 | $ | (0.01 | ) | $ | 0.79 | $ | 0.78 | $ | 10.78 | |||||||||
Class C Shares | ||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | 10.00 | (0.02 | ) | 0.79 | 0.77 | 10.77 | ||||||||||||||
Class R Shares | ||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | 10.00 | (0.01 | ) | 0.79 | 0.78 | 10.78 | ||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | 10.00 | – | (h) | 0.79 | 0.79 | 10.79 | ||||||||||||||
Institutional Class Shares | ||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | 10.00 | – | (h) | 0.79 | 0.79 | 10.79 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
142
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Mid Cap Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
7.80 | % | $ | 11 | 1.39 | % | (0.40 | %) | 16.84 | % | 9.92 | % | |||||||||||
7.70 | % | 11 | 2.00 | % | (1.01 | %) | 17.60 | % | 9.92 | % | ||||||||||||
7.80 | % | 11 | 1.64 | % | (0.64 | %) | 17.10 | % | 9.92 | % | ||||||||||||
7.90 | % | 11 | 1.14 | % | (0.15 | %) | 16.60 | % | 9.92 | % | ||||||||||||
7.90 | % | 1,036 | 1.00 | % | (0.01 | %) | 16.61 | % | 9.92 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from February 29, 2016 (commencement of operations) through April 30, 2016. |
(h) | Less than $0.005 per share. |
2016 Semi-Annual Report
143
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Multi-Cap Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net (a) | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.52 | $ | 0.02 | $ | 0.06 | $ | 0.08 | $ | (0.02 | ) | $ | (0.61 | ) | $ | (0.63 | ) | $ | 11.97 | |||||||||||||
Year Ended October 31, 2015 | 13.40 | 0.11 | (0.02 | ) | 0.09 | (0.12 | ) | (0.85 | ) | (0.97 | ) | 12.52 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.41 | 0.12 | 1.09 | 1.21 | (0.13 | ) | (0.09 | ) | (0.22 | ) | 13.40 | |||||||||||||||||||||
Year Ended October 31, 2013 | 9.97 | 0.11 | 2.43 | 2.54 | (0.10 | ) | – | (0.10 | ) | 12.41 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 9.04 | 0.08 | 0.91 | 0.99 | (0.06 | ) | – | (0.06 | ) | 9.97 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 8.64 | (0.01 | ) | 0.41 | 0.40 | – | – | – | 9.04 | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.40 | (0.02 | ) | 0.05 | 0.03 | – | (0.61 | ) | (0.61 | ) | 10.82 | |||||||||||||||||||||
Year Ended October 31, 2015 | 12.29 | 0.02 | (0.02 | ) | – | (h) | (0.04 | ) | (0.85 | ) | (0.89 | ) | 11.40 | |||||||||||||||||||
Year Ended October 31, 2014 | 11.40 | 0.02 | 1.00 | 1.02 | (0.04 | ) | (0.09 | ) | (0.13 | ) | 12.29 | |||||||||||||||||||||
Year Ended October 31, 2013 | 9.18 | 0.02 | 2.23 | 2.25 | (0.03 | ) | – | (0.03 | ) | 11.40 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 8.34 | 0.01 | 0.84 | 0.85 | (0.01 | ) | – | (0.01 | ) | 9.18 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 8.02 | (0.06 | ) | 0.38 | 0.32 | – | – | – | 8.34 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.96 | – | (h) | 0.06 | 0.06 | (0.01 | ) | (0.61 | ) | (0.62 | ) | 11.40 | ||||||||||||||||||||
Year Ended October 31, 2015 | 12.85 | 0.08 | �� | (0.02 | ) | 0.06 | (0.10 | ) | (0.85 | ) | (0.95 | ) | 11.96 | |||||||||||||||||||
Year Ended October 31, 2014 | 11.91 | 0.09 | 1.04 | 1.13 | (0.10 | ) | (0.09 | ) | (0.19 | ) | 12.85 | |||||||||||||||||||||
Year Ended October 31, 2013 | 9.58 | 0.08 | 2.32 | 2.40 | (0.07 | ) | – | (0.07 | ) | 11.91 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 8.67 | 0.05 | 0.89 | 0.94 | (0.03 | ) | – | (0.03 | ) | 9.58 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 8.31 | (0.01 | ) | 0.37 | 0.36 | – | – | – | 8.67 | |||||||||||||||||||||||
Institutional Service Class Shares |
| |||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 13.09 | 0.03 | 0.08 | 0.11 | (0.03 | ) | (0.61 | ) | (0.64 | ) | 12.56 | |||||||||||||||||||||
Year Ended October 31, 2015 | 13.98 | 0.14 | (0.03 | ) | 0.11 | (0.15 | ) | (0.85 | ) | (1.00 | ) | 13.09 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.93 | 0.15 | 1.14 | 1.29 | (0.15 | ) | (0.09 | ) | (0.24 | ) | 13.98 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.38 | 0.14 | 2.53 | 2.67 | (0.12 | ) | – | (0.12 | ) | 12.93 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 9.40 | 0.11 | 0.95 | 1.06 | (0.08 | ) | – | (0.08 | ) | 10.38 | ||||||||||||||||||||||
Period Ended October 31, 2011(i) | 8.61 | – | 0.79 | 0.79 | – | – | – | 9.40 | ||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 13.10 | 0.03 | 0.08 | 0.11 | (0.03 | ) | (0.61 | ) | (0.64 | ) | 12.57 | |||||||||||||||||||||
Year Ended October 31, 2015 | 13.99 | 0.15 | (0.03 | ) | 0.12 | (0.16 | ) | (0.85 | ) | (1.01 | ) | 13.10 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.94 | 0.16 | 1.15 | 1.31 | (0.17 | ) | (0.09 | ) | (0.26 | ) | 13.99 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.38 | 0.14 | 2.54 | 2.68 | (0.12 | ) | – | (0.12 | ) | 12.94 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 9.40 | 0.11 | 0.95 | 1.06 | (0.08 | ) | – | (0.08 | ) | 10.38 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 8.96 | 0.03 | 0.41 | 0.44 | – | – | – | 9.40 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
144
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Multi-Cap Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
0.90 | % | $ | 234,393 | 1.18 | %(g) | 0.26 | % | 1.28 | %(g) | 53.39 | % | |||||||||||
0.50 | % | 247,549 | 1.17 | %(g) | 0.87 | % | 1.25 | %(g) | 16.92 | % | ||||||||||||
9.87 | % | 276,861 | 1.17 | % | 0.92 | % | 1.25 | % | 20.60 | % | ||||||||||||
25.54 | % | 282,602 | 1.15 | % | 0.94 | % | 1.23 | % | 19.53 | % | ||||||||||||
11.03 | % | 187,216 | 1.15 | % | 0.85 | % | 1.28 | % | 27.95 | % | ||||||||||||
4.63 | % | 196,095 | 1.41 | % | (0.07 | %) | 1.70 | % | 48.65 | % | ||||||||||||
0.53 | % | 6,389 | 1.90 | %(g) | (0.46 | %) | 2.04 | %(g) | 53.39 | % | ||||||||||||
(0.27 | %) | 7,134 | 1.90 | %(g) | 0.15 | % | 1.98 | %(g) | 16.92 | % | ||||||||||||
9.07 | % | 8,469 | 1.90 | % | 0.19 | % | 1.98 | % | 20.60 | % | ||||||||||||
24.60 | % | 9,637 | 1.90 | % | 0.20 | % | 1.95 | % | 19.53 | % | ||||||||||||
10.23 | % | 7,899 | 1.90 | % | 0.10 | % | 2.00 | % | 27.95 | % | ||||||||||||
3.99 | % | 9,364 | 2.19 | % | (0.65 | %) | 2.44 | % | 48.65 | % | ||||||||||||
0.80 | % | 240 | 1.44 | %(g) | (0.01 | %) | 1.53 | %(g) | 53.39 | % | ||||||||||||
0.23 | % | 458 | 1.40 | %(g) | 0.62 | % | 1.48 | %(g) | 16.92 | % | ||||||||||||
9.62 | % | 351 | 1.40 | % | 0.69 | % | 1.48 | % | 20.60 | % | ||||||||||||
25.16 | % | 405 | 1.40 | % | 0.73 | % | 1.45 | % | 19.53 | % | ||||||||||||
10.91 | % | 416 | 1.40 | % | 0.56 | % | 1.50 | % | 27.95 | % | ||||||||||||
4.33 | % | 865 | 1.70 | % | (0.15 | %) | 1.95 | % | 48.65 | % | ||||||||||||
1.07 | % | 105,063 | 1.01 | %(g) | 0.44 | % | 1.10 | %(g) | 53.39 | % | ||||||||||||
0.59 | % | 109,288 | �� | 0.99 | %(g) | 1.06 | % | 1.07 | %(g) | 16.92 | % | |||||||||||
10.13 | % | 128,283 | 0.96 | % | 1.12 | % | 1.07 | % | 20.60 | % | ||||||||||||
25.84 | % | 128,368 | 0.90 | % | 1.21 | % | 1.05 | % | 19.53 | % | ||||||||||||
11.37 | % | 115,150 | 0.90 | % | 1.10 | % | 1.11 | % | 27.95 | % | ||||||||||||
9.18 | % | 123,074 | 0.90 | % | 0.00 | % | 1.13 | % | 48.65 | % | ||||||||||||
1.10 | % | 7,194 | 0.90 | %(g) | 0.54 | % | 1.01 | %(g) | 53.39 | % | ||||||||||||
0.68 | % | 7,059 | 0.90 | %(g) | 1.13 | % | 0.98 | %(g) | 16.92 | % | ||||||||||||
10.23 | % | 3,437 | 0.90 | % | 1.18 | % | 0.98 | % | 20.60 | % | ||||||||||||
26.00 | % | 3,867 | 0.90 | % | 1.21 | % | 0.95 | % | 19.53 | % | ||||||||||||
11.37 | % | 2,584 | 0.90 | % | 1.13 | % | 1.00 | % | 27.95 | % | ||||||||||||
4.91 | % | 3,330 | 1.19 | % | 0.35 | % | 1.44 | % | 48.65 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | Less than $0.005 per share. |
(i) | For the period from October 7, 2011 (commencement of operations) through October 31, 2011. |
2016 Semi-Annual Report
145
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Small Cap Equity Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) (a) | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Period | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 26.62 | $ | 0.02 | $ | 1.48 | $ | 1.50 | $ | – | $ | – | $ | 28.12 | ||||||||||||||
Year Ended October 31, 2015 | 23.90 | (0.08 | ) | 2.80 | 2.72 | – | – | 26.62 | ||||||||||||||||||||
Year Ended October 31, 2014 | 21.86 | 0.01 | 2.03 | 2.04 | – | – | 23.90 | |||||||||||||||||||||
Year Ended October 31, 2013 | 15.85 | 0.05 | 5.96 | 6.01 | – | – | 21.86 | |||||||||||||||||||||
Year Ended October 31, 2012 | 14.06 | (0.07 | ) | 1.86 | 1.79 | – | – | 15.85 | ||||||||||||||||||||
Year Ended October 31, 2011 | 13.65 | 0.04 | 0.47 | 0.51 | (0.10 | ) | (0.10 | ) | 14.06 | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 23.46 | (0.07 | ) | 1.30 | 1.23 | – | – | 24.69 | ||||||||||||||||||||
Year Ended October 31, 2015 | 21.20 | (0.23 | ) | 2.49 | 2.26 | – | – | 23.46 | ||||||||||||||||||||
Year Ended October 31, 2014 | 19.53 | (0.14 | ) | 1.81 | 1.67 | – | – | 21.20 | ||||||||||||||||||||
Year Ended October 31, 2013 | 14.26 | (0.07 | ) | 5.34 | 5.27 | – | – | 19.53 | ||||||||||||||||||||
Year Ended October 31, 2012 | 12.73 | (0.16 | ) | 1.69 | 1.53 | – | – | 14.26 | ||||||||||||||||||||
Year Ended October 31, 2011 | 12.42 | (0.05 | ) | 0.42 | 0.37 | (0.06 | ) | (0.06 | ) | 12.73 | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 24.78 | (0.02 | ) | 1.39 | 1.37 | – | – | 26.15 | ||||||||||||||||||||
Year Ended October 31, 2015 | 22.30 | (0.14 | ) | 2.62 | 2.48 | – | – | 24.78 | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.44 | (0.04 | ) | 1.90 | 1.86 | – | – | 22.30 | ||||||||||||||||||||
Year Ended October 31, 2013 | 14.85 | 0.01 | 5.58 | 5.59 | – | – | 20.44 | |||||||||||||||||||||
Year Ended October 31, 2012 | 13.21 | (0.10 | ) | 1.74 | 1.64 | – | – | 14.85 | ||||||||||||||||||||
Year Ended October 31, 2011 | 12.84 | 0.03 | 0.42 | 0.45 | (0.08 | ) | (0.08 | ) | 13.21 | |||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 27.90 | 0.05 | 1.55 | 1.60 | – | – | 29.50 | |||||||||||||||||||||
Year Ended October 31, 2015 | 24.96 | (1.71 | ) | 4.65 | 2.94 | – | – | 27.90 | ||||||||||||||||||||
Year Ended October 31, 2014 | 22.76 | 0.08 | 2.12 | 2.20 | – | – | 24.96 | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.47 | 0.09 | 6.20 | 6.29 | – | – | 22.76 | |||||||||||||||||||||
Year Ended October 31, 2012 | 14.56 | (0.02 | ) | 1.93 | 1.91 | – | – | 16.47 | ||||||||||||||||||||
Year Ended October 31, 2011 | 14.10 | 0.06 | 0.51 | 0.57 | (0.11 | ) | (0.11 | ) | 14.56 | |||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 27.87 | 0.06 | 1.55 | 1.61 | – | – | 29.48 | |||||||||||||||||||||
Year Ended October 31, 2015 | 24.93 | – | 2.94 | 2.94 | – | – | 27.87 | |||||||||||||||||||||
Year Ended October 31, 2014 | 22.73 | 0.07 | 2.13 | 2.20 | – | – | 24.93 | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.43 | 0.12 | 6.18 | 6.30 | – | – | 22.73 | |||||||||||||||||||||
Year Ended October 31, 2012 | 14.53 | (0.02 | ) | 1.92 | 1.90 | – | – | 16.43 | ||||||||||||||||||||
Year Ended October 31, 2011 | 14.07 | 0.10 | 0.47 | 0.57 | (0.11 | ) | (0.11 | ) | 14.53 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
146
Financial Highlights (concluded)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen U.S. Small Cap Equity Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
5.63 | % | $ | 122,764 | 1.42 | % | 0.12 | % | 1.42 | % | 15.16 | % | |||||||||||
11.38 | % | 75,005 | 1.46 | % | (0.33 | %) | 1.53 | % | 29.43 | % | ||||||||||||
9.33 | % | 72,790 | 1.47 | % | 0.03 | % | 1.59 | % | 29.32 | % | ||||||||||||
37.92 | % | 81,916 | 1.47 | % | 0.25 | % | 1.58 | % | 39.71 | % | ||||||||||||
12.73 | % | 70,189 | 1.47 | % | (0.46 | %) | 1.55 | % | 23.05 | % | ||||||||||||
3.65 | % | 92,187 | 1.44 | % | 0.28 | % | 1.59 | % | 41.48 | % | ||||||||||||
5.24 | % | 52,966 | 2.13 | % | (0.58 | %) | 2.13 | % | 15.16 | % | ||||||||||||
10.66 | % | 35,665 | 2.15 | % | (1.02 | %) | 2.22 | % | 29.43 | % | ||||||||||||
8.55 | % | 31,346 | 2.15 | % | (0.66 | %) | 2.27 | % | 29.32 | % | ||||||||||||
36.96 | % | 32,664 | 2.15 | % | (0.42 | %) | 2.26 | % | 39.71 | % | ||||||||||||
12.02 | % | 29,734 | 2.15 | % | (1.13 | %) | 2.23 | % | 23.05 | % | ||||||||||||
2.94 | % | 35,391 | 2.11 | % | (0.33 | %) | 2.26 | % | 41.48 | % | ||||||||||||
5.53 | % | 10,897 | 1.66 | % | (0.15 | %) | 1.66 | % | 15.16 | % | ||||||||||||
11.12 | % | 4,601 | 1.71 | % | (0.59 | %) | 1.78 | % | 29.43 | % | ||||||||||||
9.10 | % | 1,152 | 1.70 | % | (0.19 | %) | 1.82 | % | 29.32 | % | ||||||||||||
37.64 | % | 1,507 | 1.67 | % | 0.08 | % | 1.78 | % | 39.71 | % | ||||||||||||
12.41 | % | 2,195 | 1.73 | % | (0.68 | %) | 1.81 | % | 23.05 | % | ||||||||||||
3.45 | % | 3,336 | 1.65 | % | 0.18 | % | 1.80 | % | 41.48 | % | ||||||||||||
5.73 | % | 23,687 | 1.13 | % | 0.33 | % | 1.13 | % | 15.16 | % | ||||||||||||
11.78 | % | 9,101 | 1.18 | % | (6.38 | %) | 1.25 | % | 29.43 | % | ||||||||||||
9.67 | % | 1,626 | 1.15 | % | 0.33 | % | 1.27 | % | 29.32 | % | ||||||||||||
38.19 | % | 1,694 | 1.15 | % | 0.48 | % | 1.26 | % | 39.71 | % | ||||||||||||
13.12 | % | 11,909 | 1.15 | % | (0.13 | %) | 1.23 | % | 23.05 | % | ||||||||||||
4.00 | % | 15,100 | 1.12 | % | 0.40 | % | 1.26 | % | 41.48 | % | ||||||||||||
5.78 | % | 408,623 | 1.13 | % | 0.40 | % | 1.13 | % | 15.16 | % | ||||||||||||
11.79 | % | 235,400 | 1.15 | % | 0.02 | % | 1.22 | % | 29.43 | % | ||||||||||||
9.68 | % | 27,404 | 1.15 | % | 0.30 | % | 1.27 | % | 29.32 | % | ||||||||||||
38.34 | % | 19,619 | 1.15 | % | 0.61 | % | 1.26 | % | 39.71 | % | ||||||||||||
13.08 | % | 26,346 | 1.15 | % | (0.10 | %) | 1.23 | % | 23.05 | % | ||||||||||||
4.01 | % | 35,100 | 1.11 | % | 0.67 | % | 1.26 | % | 41.48 | % |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
2016 Semi-Annual Report
147
April 30, 2016 (unaudited)
1. Organization
Aberdeen Funds (the “Trust”) was organized as a statutory trust under the laws of the state of Delaware by a Certificate of Trust filed on September 27, 2007 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of April 30, 2016, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2016, the Trust operated twenty-five (25) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the fifteen (15) funds listed below (each a “Fund”; collectively, the “Funds”):
– | Aberdeen Asia-Pacific (ex-Japan) Equity Fund (“Asia-Pacific (ex-Japan) Equity Fund”) |
– | Aberdeen Asia-Pacific Smaller Companies Fund (“Asia-Pacific Smaller Companies Fund”) |
– | Aberdeen China Opportunities Fund (“China Opportunities Fund”) |
– | Aberdeen Emerging Markets Fund (“Emerging Markets Fund”) |
– | Aberdeen Equity Long-Short Fund (“Equity Long-Short Fund”) |
– | Aberdeen European Equity Fund (“European Equity Fund”) |
– | Aberdeen Global Equity Fund (“Global Equity Fund”)* |
– | Aberdeen Global Natural Resources Fund (“Global Natural Resources Fund”) |
– | Aberdeen International Equity Fund (“International Equity Fund”) |
– | Aberdeen International Small Cap Fund (“International Small Cap Fund”, formerly the “Aberdeen Global Small Cap Fund”) |
– | Aberdeen Japanese Equities Fund (“Japanese Equities Fund”)** |
– | Aberdeen Latin American Equity Fund (“Latin American Equity Fund”) |
– | Aberdeen U.S. Mid Cap Equity Fund (“U.S. Mid Cap Equity Fund”)*** |
– | Aberdeen U.S. Multi-Cap Equity Fund (“U.S. Multi-Cap Equity Fund”, formerly the “Aberdeen U.S. Equity Fund”) |
– | Aberdeen U.S. Small Cap Equity Fund (“U.S. Small Cap Equity Fund”, formerly the “Aberdeen Small Cap Fund”) |
* | On February 25, 2015, the Global Equity Fund acquired the assets and assumed the liabilities of the Aberdeen Global Select Opportunities Fund Inc. (the “Global Select Opportunities Fund”). The Global Equity Fund is considered the accounting survivor of the reorganization. |
In connection with the reorganization, the Global Select Opportunities Fund’s Class A and Institutional Class shares were exchanged for Class A and Institutional Class shares of the Global Equity Fund, respectively. |
The following is a summary of the net assets reorganized and net asset value per share issued as of February 25, 2015. |
Shares Issued of the Global Equity Fund | Fund Net Assets Reorganized from the Global Select Opportunities Fund | Net Asset Value Per Shares Issued of the Global Equity Fund | ||||||||||
Class A | 364,123 | $4,987,280 | $13.70 | |||||||||
Class C | – | – | – | |||||||||
Class R | – | – | – | |||||||||
Institutional Service Class | – | – | – | |||||||||
Institutional Class | 86,882 | 1,191,495 | 13.71 |
** | On November 30, 2015, Japanese Equities Fund commenced operations. |
*** | On February 29, 2016, U.S. Mid Cap Equity Fund commenced operations. |
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Funds are maintained in U.S. Dollars.
a. | Security Valuation |
The Funds value their securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Funds’ Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.
Semi-Annual Report 2016
148
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Open-end mutual funds are valued at the respective net asset value as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined to be a Level 1 investment.
Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider approved by the Board. These valuation factors are used when pricing a Fund’s portfolio holdings to estimate market movements between the time foreign markets close and the time a Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.
Forward foreign currency contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived based on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Interest rate swaps agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows).
In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Funds’ Pricing Committee (the “Pricing Committee”), taking into account the relevant factors and surrounding circumstances using Valuation and Liquidity Procedures approved by the Funds’ Board of Trustees (the “Board”). A security that has been fair valued by the Pricing Committee may be classified as Level 2 or 3 depending on the nature of the inputs.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1 measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3 measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
The three-level hierarchy of inputs is summarized below:
• | Level 1 - quoted prices in active markets for identical investments; |
• | Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or |
• | Level 3 - significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments). |
A summary of standard inputs is listed below:
Security Type | Standard Inputs | |
Foreign equities utilizing a fair value factor | Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. |
2016 Semi-Annual Report
149
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
The following is a summary of the inputs used as of April 30, 2016 in valuing the Funds’ investments at fair value. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Please refer to the Statements of Investments for a detailed breakout of the security types:
LEVEL 1–Quoted Prices ($) | LEVEL 2–Other Significant Observable Inputs ($) | LEVEL 3–Significant Unobservable Inputs ($) | Total ($) | |||||||||||||
Asia-Pacific (ex-Japan) Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 369,949 | 16,755,874 | – | 17,125,823 | ||||||||||||
Preferred Stocks | – | 1,041,737 | – | 1,041,737 | ||||||||||||
Repurchase Agreement | – | 467,000 | – | 467,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
369,949 | 18,264,611 | – | 18,634,560 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Asia-Pacific Smaller Companies Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 702,101 | 2,276,646 | – | 2,978,747 | ||||||||||||
Warrants | 827 | – | – | 827 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
702,928 | 2,276,646 | – | 2,979,574 | |||||||||||||
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|
|
| |||||||||
China Opportunities Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 571,419 | 12,999,475 | 585,307 | 14,156,201 | ||||||||||||
Repurchase Agreement | – | 395,000 | – | 395,000 | ||||||||||||
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|
|
|
|
| |||||||||
571,419 | 13,394,475 | 585,307 | 14,551,201 | |||||||||||||
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|
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| |||||||||
Emerging Markets Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 1,617,553,204 | 5,048,464,641 | – | 6,666,017,845 | ||||||||||||
Preferred Stocks | 215,885,079 | 307,740,834 | – | 523,625,913 | ||||||||||||
Repurchase Agreement | – | 138,713,000 | – | 138,713,000 | ||||||||||||
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|
|
|
|
|
| |||||||||
1,833,438,283 | 5,494,918,475 | – | 7,328,356,758 | |||||||||||||
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| |||||||||
Equity Long-Short Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks–Long Positions | 85,351,772 | – | – | 85,351,772 | ||||||||||||
Repurchase Agreement | – | 11,699,000 | – | 11,699,000 | ||||||||||||
Common Stocks–Short Positions | (40,330,272 | ) | – | – | (40,330,272 | ) | ||||||||||
Exchange Traded Funds–Short Positions | (4,288,909 | ) | – | – | (4,288,909 | ) | ||||||||||
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| |||||||||
40,732,591 | 11,699,000 | – | 52,431,591 | |||||||||||||
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| |||||||||
European Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 431 | 1,340,227 | – | 1,340,658 | ||||||||||||
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|
|
|
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| |||||||||
431 | 1,340,227 | – | 1,340,658 | |||||||||||||
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|
Semi-Annual Report 2016
150
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
LEVEL 1–Quoted Prices ($) | LEVEL 2–Other Significant Observable Inputs ($) | LEVEL 3–Significant Unobservable Inputs ($) | Total ($) | |||||||||||||
Global Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 43,350,052 | 41,585,180 | – | 84,935,232 | ||||||||||||
Preferred Stocks | 4,374,654 | 1,530,533 | – | 5,905,187 | ||||||||||||
Repurchase Agreement | – | 3,268,000 | – | 3,268,000 | ||||||||||||
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|
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| |||||||||
47,724,706 | 46,383,713 | – | 94,108,419 | |||||||||||||
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| |||||||||
Global Natural Resources Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 10,458,467 | 9,722,482 | – | 20,180,949 | ||||||||||||
Preferred Stocks | 562,410 | – | – | 562,410 | ||||||||||||
Repurchase Agreement | – | 716,000 | – | 716,000 | ||||||||||||
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|
|
|
|
| |||||||||
11,020,877 | 10,438,482 | – | 21,459,359 | |||||||||||||
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| |||||||||
International Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 55,409,713 | 383,847,079 | – | 439,256,792 | ||||||||||||
Preferred Stocks | 27,185,618 | 9,468,744 | – | 36,654,362 | ||||||||||||
Repurchase Agreement | – | 19,312,000 | – | 19,312,000 | ||||||||||||
|
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|
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|
|
|
| |||||||||
82,595,331 | 412,627,823 | – | 495,223,154 | |||||||||||||
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| |||||||||
International Small Cap Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 26,659,603 | 49,171,535 | – | 75,831,138 | ||||||||||||
Repurchase Agreement | – | 1,375,000 | – | 1,375,000 | ||||||||||||
|
|
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|
|
|
|
| |||||||||
26,659,603 | 50,546,535 | – | 77,206,138 | |||||||||||||
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| |||||||||
Japanese Equities Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 19,263 | 905,323 | – | 924,586 | ||||||||||||
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|
|
|
| |||||||||
19,263 | 905,323 | – | 924,586 | |||||||||||||
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| |||||||||
Latin American Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 2,992,021 | – | – | 2,992,021 | ||||||||||||
Preferred Stocks | 313,046 | – | – | 313,046 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
3,305,067 | – | – | 3,305,067 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
U.S. Mid Cap Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 1,055,414 | – | – | 1,055,414 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
1,055,414 | – | – | 1,055,414 | |||||||||||||
|
|
|
|
|
|
|
|
2016 Semi-Annual Report
151
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
LEVEL 1–Quoted Prices ($) | LEVEL 2–Other Significant Observable Inputs ($) | LEVEL 3–Significant Unobservable Inputs ($) | Total ($) | |||||||||||||
U.S. Multi-Cap Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 348,267,792 | – | – | 348,267,792 | ||||||||||||
Repurchase Agreement | – | 5,413,000 | – | 5,413,000 | ||||||||||||
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348,267,792 | 5,413,000 | – | 353,680,792 | |||||||||||||
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U.S. Small Cap Equity Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | 600,606,283 | – | – | 600,606,283 | ||||||||||||
Repurchase Agreement | – | 14,223,000 | – | 14,223,000 | ||||||||||||
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600,606,283 | 14,223,000 | – | 614,829,283 | |||||||||||||
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China Opportunities Fund Rollforward of Level 3 Fair Value Measurement For the Six-Month Period Ended April 30, 2016 | ||||||||||||||||||||||||||||||||||||
Investments, at value | Balance as of 10/31/15 | Accrued Discounts (Premiums) | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Capital Contributed | Distributions/ Sales | Net Transfers in to Level 3 | Net Transfers out of Level 3 | Balance as of 4/30/16 | |||||||||||||||||||||||||||
Common Stock | $ | – | $ | – | $ | – | $ | – | $ | – | $ | - | $ | 585,307 | $ | – | $ | 585,307 |
For movements between the Levels within the fair value hierarchy, the Funds have adopted a policy of recognizing transfers at the end of each period. As described above, certain foreign securities are valued utilizing valuation factors provided by an independent pricing service to reflect any significant market movements between the time foreign markets close and the time the Fund values such foreign securities. The utilization of valuation factors may result in transfers between Level 1 and Level 2. During the six months ended April 30, 2016, several Funds had transfers between Level 1 and Level 2 because there was a valuation factor applied at April 30, 2016 that had not been applied at a prior period end or a valuation factor applied at a prior period end that was not applied at April 30, 2016. Also, a security issued by China Vanke Co. Ltd. Class A Shares in the amount of $585,307 transferred from Level 2 to Level 3 as the security halted during the period ended March 31, 2016 and is being fair valued using an indexing methodology. For the six months ended April 30, 2016 there were no significant changes to the fair valuation methodologies. The following is a summary of Funds which had significant transfers:
Fund | Transfer from Level 1 | Transfer from Level 2 | ||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | – | $ | 192,610 | ||||
Asia-Pacific Smaller Companies Fund | $ | 261,189 | $ | 130,762 | ||||
China Opportunities Fund | $ | 994,064 | $ | 973,815 | ||||
Global Natural Resources Fund | $ | 599,063 | $ | – | ||||
International Small Cap Fund | $ | 3,066,412 | $ | – |
b. | Repurchase Agreements |
The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is each Fund’s policy that its custodian/counterparty segregate the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates. To the extent that any repurchase transaction exceeds one business day, the collateral is valued on a daily basis to determine its adequacy. Under the Master Repurchase Agreement, if the counterparty defaults and the value of the collateral declines, or if bankruptcy proceedings are commenced with respect to the counterparty of the security, realization of the collateral by the Funds may be delayed or limited. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on individual repurchase agreements, see the Statements of Investments.
Semi-Annual Report 2016
152
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
c. | Restricted Securities |
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the “1933 Act”). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Funds, but resale of such securities in the U.S. is permitted only in limited circumstances.
d. | Foreign Currency Translation |
Foreign currency amounts are translated into U.S. Dollars at the current rate of exchange as of the Valuation Time to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies within the Statements of Operations.
Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by an independent pricing service.
e. | Rights Issues and Warrants |
Rights issues give the right, normally to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally a short term period) and are offered at the company’s discretion. Warrants are securities that give the holder the right to buy common stock at a specified price for a specified period of time. Rights issues and warrants are speculative and have no value if they are not exercised before the expiration date. Rights issues and warrants are valued at the last sale price on the exchange on which they are traded.
f. | Short Sales |
During the period, the Equity Long-Short Fund engaged in short-selling of portfolio securities, which obligates the Fund to replace any security that it has borrowed by purchasing the security at current market value sometime in the future. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund generally will realize a gain if the price of the security declines between these dates. Until the Fund replaces the borrowed security, the Fund will segregate or earmark cash, other liquid assets and/or securities held long to sufficiently cover the Fund’s short position on a daily basis. Dividends declared on securities sold short are recorded as an expense on the ex-dividend date and paid to the counterparty on the dividend pay date. The collateral for securities sold short includes the deposits with brokers and securities held long as shown in the Statement of Investments for the Fund.
g. | Security Transactions, Investment Income and Expenses |
Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as a Fund acquires information regarding such dividends or corporate actions.
Interest income and expenses are recorded on an accrual basis. Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the relevant Funds based on net assets of each. For each of the Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses to a class is based on the total net asset value of that class’s shares in proportion to the total net assets of the relevant Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
h. | Distributions |
Distributions from net investment income, if any, are declared and paid quarterly for all Funds. The Funds 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 shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign currencies and loss deferrals.
2016 Semi-Annual Report
153
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
i. | Federal Income Taxes |
Each Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is required. Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31 are subject to such review.
j. | Foreign Withholding Tax |
Dividend and interest income from non-U.S. sources received by the Funds are generally subject to non-U.S. withholding taxes. In addition, the Funds may be subject to capital gains tax in certain countries in which they invest. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Funds accrue such taxes when the related income is earned.
3. Agreements and Transactions with Affiliates
a. | Investment Adviser |
Under the Investment Advisory Agreement with the Trust, Aberdeen Asset Management Inc. (“Aberdeen” or the “Adviser”) manages the Funds in accordance with the policies and procedures established by the Board.
For services provided under the terms of the current Investment Advisory Agreement, each Fund pays the Adviser an annual management fee (as a percentage of its average daily net assets) paid monthly according to the following schedule:
Fund | Fee Schedule | |||||||
Asia-Pacific (ex-Japan) Equity Fund | On all assets | 1.00% | ||||||
Asia-Pacific Smaller Companies Fund | Up to $500 million | 1.30% | ||||||
$500 million up to $2 billion | 1.25% | |||||||
On $2 billion and more | 1.15% | |||||||
China Opportunities Fund | Up to $500 million | 1.25% | ||||||
$500 million up to $2 billion | 1.20% | |||||||
On $2 billion and more | 1.15% | |||||||
Emerging Markets Fund | On all assets | 0.90% | ||||||
Equity Long-Short Fund | Up to $1 billion | 1.15% | ||||||
On $1 billion and more | 1.00% | |||||||
European Equity Fund | Up to $500 million | 0.90% | ||||||
$500 million up to $2 billion | 0.85% | |||||||
On $2 billion and more | 0.80% | |||||||
Global Equity Fund | Up to $500 million | 0.90% | ||||||
$500 million up to $2 billion | 0.85% | |||||||
On $2 billion and more | 0.80% | |||||||
Global Natural Resources Fund | Up to $500 million | 0.70% | ||||||
$500 million up to $2 billion | 0.65% | |||||||
On $2 billion and more | 0.60% | |||||||
International Equity Fund | On all assets | 0.80% | ||||||
International Small Cap Fund | Up to $100 million | 1.25% | ||||||
On $100 million and more | 1.00% | |||||||
Japanese Equities Fund | On all assets | 0.65% | ||||||
Latin American Equity Fund | Up to $500 million | 1.10% | ||||||
$500 million up to $2 billion | 1.05% | |||||||
On $2 billion and more | 1.00% | |||||||
U.S. Mid Cap Equity Fund | Up to $500 million | 0.75% | ||||||
$500 million up to $2 billion | 0.70% | |||||||
On $2 billion and more | 0.65% |
Semi-Annual Report 2016
154
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
Fund | Fee Schedule | |||||||
U.S. Multi-Cap Equity Fund | �� | Up to $500 million | 0.75% | |||||
$500 million up to $2 billion | 0.70% | |||||||
On $2 billion and more | 0.65% | |||||||
U.S. Small Cap Equity Fund | Up to $100 million | 0.95% | ||||||
On $100 million and more | 0.80% |
The Adviser has engaged the services of affiliates Aberdeen Asset Management Asia Limited (“AAMAL”) and Aberdeen Asset Managers Limited (“AAML”) as subadvisers (the “Subadvisers”) pursuant to subadvisory agreements. The Subadvisers manage a portion of certain Funds’ investments and have the responsibility for making all investment decisions for the portion of a Fund’s assets they manage. Pursuant to the subadvisory agreements, the Adviser pays fees to the Subadvisers, if any.
The Trust and Aberdeen have entered into a written contract (“Expense Limitation Agreement”) limiting operating expenses for all classes of the Funds from exceeding the amounts listed below. This contractual limitation may not be terminated before February 28, 2017 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees, transfer agent out-of-pocket expenses for Class A shares, Class R shares, and Institutional Service Class shares and extraordinary expenses.
Fund | Limit | |||
Asia-Pacific (ex-Japan) Equity Fund | 1.25% | |||
Asia-Pacific Smaller Companies Fund | 1.50% | |||
China Opportunities Fund | 1.62% | |||
Emerging Markets Fund | 1.10% | |||
Equity Long-Short Fund | 1.40% | |||
European Equity Fund | 1.10% | |||
Global Equity Fund | 1.19% | |||
Global Natural Resources Fund | 1.16% | |||
International Equity Fund | 1.10% | |||
International Small Cap Fund | 1.30% | |||
Japanese Equities Fund | 1.00% | |||
Latin American Equity Fund | 1.30% | |||
U.S. Mid Cap Equity Fund | 1.00% | |||
U.S. Multi-Cap Equity Fund | 0.90% | |||
U.S. Small Cap Equity Fund | 1.15% |
The Adviser has also entered into a written contract to reimburse the Equity Long-Short Fund for short-sale brokerage expenses at an annual rate of up to 0.15% of the Fund’s average daily net assets. Amounts reimbursed by the Adviser for short sale brokerage expenses are not subject to recoupment at a later date. This contract may not be terminated before February 28, 2017 or the effective date of the 2017 annual update to the registration statement, whichever occurs first.
Aberdeen may request and receive reimbursement from a Fund of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement at a later date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Funds was made. However, no reimbursement will be made unless:
(i) the total annual expense ratio of the class making such reimbursement is less than the limit set forth above; and
(ii) the payment of such reimbursement is approved by the Board on a quarterly basis (the “Reimbursement Requirements”).
If the Board approves any changes in the waiver terms or limitations, reimbursements are only permitted to the extent that the terms of the Expense Limitation Agreement in effect at the time of the waiver are met at the time that reimbursement is approved. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by Aberdeen is not permitted.
2016 Semi-Annual Report
155
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
During the year ended October 31, 2015, the following funds received reimbursement from Aberdeen for certain previously paid Transfer Agent expenses not attributable to the Funds as follows:
Equity Long-Short Fund | $ | 19,386 | ||
Global Equity Fund | $ | 17,201 | ||
Global Natural Resources Fund | $ | 24,439 | ||
International Equity Fund | $ | 264,886 |
In addition and related to the Transfer Agent expenses not attributable to the Funds, Aberdeen has reduced the amounts of prior advisory fees waived and other expenses reimbursed that are eligible for reimbursement in future periods by the following amounts for the following funds:
Global Natural Resources Fund | $ | 77,643 | ||
U.S. Small Cap Equity Fund | $ | 75,732 | ||
China Opportunities Fund | $ | 11,010 | ||
U.S. Multi-Cap Equity Fund | $ | 14,357 | ||
International Small Cap Fund | $ | 1,423 | ||
Emerging Markets Fund | $ | 36,985 |
As of April 30, 2016, to the extent the Reimbursement Requirements are met, the cumulative potential reimbursements for each Fund, based on expenses reimbursed by Aberdeen, including adjustments described above, would be:
Fund | Amount Fiscal Year 2013 (Expires 10/31/16) | Amount Fiscal Year 2014 (Expires 10/31/17) | Amount Fiscal Year 2015 (Expires 10/31/18) | Amount Six Months Ended April 30, 2016 (expires 4/30/18) | Total* | |||||||||||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 58,037 | $ | 170,934 | $ | 136,242 | $ | 433,202 | $ | 798,415 | ||||||||||
Asia-Pacific Smaller Companies Fund | 146,864 | 201,689 | 209,750 | 96,213 | 654,516 | |||||||||||||||
China Opportunities Fund | 57,573 | 134,971 | 137,165 | 68,433 | 398,142 | |||||||||||||||
Emerging Markets Fund | – | 1,662,213 | 3,028,391 | 1,825,859 | 6,516,463 | |||||||||||||||
Equity Long-Short Fund | – | 23,669 | 98,729 | 90,587 | 212,985 | |||||||||||||||
European Equity Fund | 93,240 | 133,233 | 123,659 | 63,071 | 413,203 | |||||||||||||||
Global Equity Fund | – | – | 39,833 | 31,234 | 71,067 | |||||||||||||||
Global Natural Resources Fund | – | 69,516 | 116,650 | 54,167 | 240,333 | |||||||||||||||
International Equity Fund | – | – | – | 1,402 | 1,402 | |||||||||||||||
International Small Cap Fund | 199,489 | 365,671 | 369,096 | 196,455 | 1,130,711 | |||||||||||||||
Japanese Equities Fund | – | – | – | 67,846 | 67,846 | |||||||||||||||
Latin American Equity Fund | 115,564 | 132,985 | 123,428 | 58,679 | 430,656 | |||||||||||||||
U.S. Mid Cap Equity Fund | – | – | – | 27,637 | 27,637 | |||||||||||||||
U.S. Multi-Cap Equity Fund | 77,460 | 319,455 | 330,663 | 165,244 | 892,822 | |||||||||||||||
U.S. Small Cap Equity Fund | 708 | 163,603 | 157,239 | – | 321,550 |
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
Amounts listed as “–” are $0 or round to $0.
b. | Fund Administration |
Under the terms of the Fund Administration Agreement, Aberdeen provides various administrative and accounting services, including daily valuation of the Funds’ shares, preparation of financial statements, tax returns, regulatory reports, and presentation of quarterly reports to the Board. For services provided pursuant to the Fund Administration Agreement, the Trust pays Aberdeen an annual fee of 0.08% based on the Trust’s average daily net assets. The fee is then allocated proportionately among all funds within the Trust (including the Funds) in relation to the average daily net assets of each fund. This asset-based fee is subject to an annual minimum fee based on the number of funds served. Pursuant to a sub-administration agreement with Aberdeen. State Street Bank and Trust Company provides sub-administration services with respect to the Funds.
Semi-Annual Report 2016
156
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
c. | Distributor and Shareholder Servicing |
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor” or “AFD”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares.
The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate AFD, as the Funds’ Distributor, for expenses associated with the distribution of certain classes of shares of the Funds of the Trust. Although actual distribution expenses may be more or less, under the Plan, the Funds of the Trust pay the Distributor an annual fee of the following amounts:
Fund | Class A Shares | Class C Shares(a) | Class R Shares | |||||||||
Asia-Pacific (ex-Japan) Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
Asia-Pacific Smaller Companies Fund | 0.25% | 1.00% | 0.50% | |||||||||
China Opportunities Fund | 0.25% | 1.00% | 0.50% | |||||||||
Emerging Markets Fund | 0.25% | 1.00% | 0.50% | |||||||||
Equity Long-Short Fund | 0.25% | 1.00% | 0.50% | |||||||||
European Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
Global Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
Global Natural Resources Fund | 0.25% | 1.00% | 0.50% | |||||||||
International Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
International Small Cap Fund | 0.25% | 1.00% | 0.50% | |||||||||
Japanese Equities Fund | 0.25% | 1.00% | 0.50% | |||||||||
Latin American Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
U.S. Mid Cap Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
U.S. Multi-Cap Equity Fund | 0.25% | 1.00% | 0.50% | |||||||||
U.S. Small Cap Equity Fund | 0.25% | 1.00% | 0.50% |
(a) | 0.25% of which is service fees. |
The Adviser or an affiliate of the Adviser may pay additional amounts from its own resources to dealers or other financial intermediaries, for aid in distribution or for aid in providing administrative services to shareholders.
Pursuant to the current Underwriting Agreement, the Distributor will also receive the proceeds of contingent deferred sales charges (“CDSCs”) of 1% imposed on certain redemptions of Class C (and up to 1% for certain Class A) shares.
In addition, the Distributor will re-allow to dealers 5.00% of sales charges on Class A shares of the Funds, which have a maximum front-end sales charge of 5.75% and the Distributor or the Adviser may compensate broker dealers or financial intermediaries from its own resources at the rate of 1.00% on sales of Class C shares of the Funds, which have a maximum CDSC of 1.00% (the CDSC assessed on sales within one year of purchase). For the six month period ended April 30, 2016, AFD retained commissions of $244,713 from front-end sales charges of Class A shares and $14,766 from CDSC fees from Class C (and certain Class A) shares of the Funds.
d. | Administrative Services |
Under the terms of the current Administrative Services Plan, a series of the Trust is permitted to enter into Servicing Agreements with servicing organizations, such as any bank, trust company, thrift institution, broker-dealer, insurance company, or other financial institution, which agree to provide certain administrative support services in connection with the Class A, Class R and Institutional Service Class shares of the series of the Trust (as applicable). These fees are based on an annual rate of up to 0.25% (or 0.15% under an amendment to the Administrative Services Plan that is in effect until at least February 28, 2017) of the average daily net assets of Class A, Class R and
2016 Semi-Annual Report
157
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
Institutional Service Class shares of each of the Funds (as applicable). The amount of expenses incurred under the terms of the Administrative Services Plan during the six month period ended April 30, 2016 was as follows:
Fund | Amount | |||
Asia-Pacific (ex-Japan) Equity Fund | $ | 261 | ||
Asia-Pacific Smaller Companies Fund | 482 | |||
China Opportunities Fund | 1,180 | |||
Emerging Markets Fund | 405,608 | |||
Equity Long-Short Fund | 6,623 | |||
European Equity Fund | 2 | |||
Global Equity Fund | 22,055 | |||
Global Natural Resources Fund | 3,019 | |||
International Equity Fund | 112,718 | |||
International Small Cap Fund | 11,003 | |||
Japanese Equities Fund | – | |||
Latin American Equity Fund | 1 | |||
U.S. Mid Cap Equity Fund | – | |||
U.S. Multi-Cap Equity Fund | 54,002 | |||
U.S. Small Cap Equity Fund | 17,693 |
The Funds may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. These fees may be in addition to the Rule 12b-1 fees and Administrative Services fees. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.
The Funds are permitted to buy or sell securities with funds that have a common investment adviser (or investment advisers which are affiliates) under specific procedures which have been approved by the Board of Trustees of the Trust. The procedures are designed to satisfy the requirements of Rule 17a-7 of the Investment Company Act of 1940 (“Rule 17a-7”). During the period ended April 30, 2016, the Funds engaged in purchases and sales of securities pursuant to Rule 17a-7 as follows:
Fund | Purchases | Sales | ||||||
Global Natural Resources Fund | $ | 14,048 | $ | – | ||||
U.S. Multi-Cap Equity Fund | – | 344,890 |
4. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the six month period ended April 30, 2016, were as follows:
Fund | Purchases | Sales | ||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 23,719,907 | $ | 250,520,465 | ||||
Asia-Pacific Smaller Companies Fund | 1,199,502 | 5,568,901 | ||||||
China Opportunities Fund | 1,251,287 | 2,383,568 | ||||||
Emerging Markets Fund | 251,094,024 | 911,125,348 | ||||||
Equity Long-Short Fund | 20,978,210 | 36,304,470 | ||||||
European Equity Fund | 205,903 | 179,461 | ||||||
Global Equity Fund | 13,712,322 | 11,224,989 | ||||||
Global Natural Resources Fund | 3,702,813 | 2,266,895 | ||||||
International Equity Fund | 104,067,077 | 200,783,138 | ||||||
International Small Cap Fund | 24,431,667 | 54,476,860 | ||||||
Japanese Equities Fund | 978,083 | 49,159 | ||||||
Latin American Equity Fund | 431,681 | 419,101 |
Semi-Annual Report 2016
158
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
Fund | Purchases | Sales | ||||||
U.S. Mid Cap Equity Fund | $ | 1,026,856 | $ | 50,632 | ||||
U.S. Multi-Cap Equity Fund | 186,192,736 | 206,968,669 | ||||||
U.S. Small Cap Equity Fund | 285,699,757 | 68,231,802 |
5. Financial Highlights
The Global Equity Fund Institutional Service Class Financial Highlights prior to the fiscal year ended October 31, 2009 were as follows:
Investment Activities | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Activities | Net Investment Income | Tax Return of Capital | Total Distributions | Redemption Fees | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets at End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2008 | $ | 15.55 | 0.06 | (6.91) | (6.85) | (0.06) | (0.01) | (0.07) | – | $ | 8.63 | (44.20%) | $ | 15 | 1.35% | 0.55% | 1.54% | 241.73% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2007 | $ | 11.74 | 0.03 | 3.81 | 3.84 | (0.04) | – | (0.04) | 0.01 | $ | 15.55 | 32.84% | $ | 39 | 1.42% | 0.17% | 1.42% | 257.25% |
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
6. Portfolio Investment Risks
a. | Concentration Risk |
Investing 25% or more of the Global Natural Resources Fund’s net assets in a select group of companies in natural resources industries could subject the Global Natural Resources Fund to greater risk of loss and could be considerably more volatile than a broad-based market index or other mutual funds that are diversified across a greater number of industries.
b. | Country/Regional Focus Risk |
Certain Funds may have significant exposure to a single country or geographical region, which involves increased currency, political, regulatory and other risks. Market swings in the targeted country or geographical region likely will have a greater effect on portfolio performance than they would in a more geographically diversified fund.
c. | Emerging Markets Risk |
Certain Funds are subject to Emerging Markets Risk. This is a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).
d. | Equity-Linked Notes |
Certain Funds may invest in equity-linked notes, which are generally subject to the same risks as the foreign equity securities or the basket of foreign securities they are linked to. If the linked security(ies) declines in value, the note may return a lower amount at maturity. The trading price of an equity-linked note also depends on the value of the linked security(ies).
e. | Foreign Currency Exposure Risk |
The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.
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April 30, 2016 (unaudited)
f. | Foreign Securities Risk |
Certain Funds are subject to Foreign Securities Risk. Foreign securities may be more volatile, harder to price and less liquid than U.S. securities.
Asia-Pacific (ex-Japan) Region. The Asia-Pacific (ex-Japan) region generally refers to the part of the world in or near the Western Pacific Ocean. The area includes much of East Asia, South Asia, Australasia and Oceania, but excludes Japan. Parts of the Asian-Pacific region may be subject to a greater degree of economic, political and social instability, as described below under “—Asian Risk.”
Asian Risk. Parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Asian region may lead to a lack of liquidity while some countries have restricted the flow of money in and out of the country. Some countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. A Fund investing heavily in Asia may be more volatile than a fund which is broadly diversified geographically.
China Risk. Certain Funds may concentrate investments in China and Hong Kong, which subjects those Funds to additional risks, and may make it significantly more volatile than geographically diverse mutual funds. Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, limitations on repatriation and differing legal standards.
Europe—Recent Events. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro, the common currency of the European Union, and/or withdraw from the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching. Whether or not a Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and liquidity of a Fund’s investments.
Japan Risk. The Japanese economy has only recently emerged from a prolonged economic downturn. Since the year 2000, Japan’s economic growth has remained relatively low. The economy is characterized by an aging demographic, declining population, large government debt and highly regulated labor market. Economic growth is dependent on domestic consumption, deregulation and consistent government policy. International trade, particularly with the U.S., also impacts growth and adverse economic conditions in the U.S. or other such trade partners may affect Japan. Japan also has a growing economic relationship with China and other Southeast Asian countries, and thus Japan’s economy may also be affected by economic, political or social instability in those countries (whether resulting from local or global events).
Latin American Risk. Latin American countries may be subject to a greater degree of political, sovereign and economic instability than is the case in the United States and Europe. Some Latin American countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Latin American region may lead to a lack of liquidity. A Fund investing heavily in Latin America may be more volatile than a fund which is broadly diversified geographically.
g. | Illiquid Securities Risk |
Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which a Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value.
Each Fund employs proprietary procedures and tests using third-party and internal data inputs that seek to assess and manage the liquidity of its portfolio holdings. A Fund’s procedures and tests take into account relevant market, trading and other factors, and monitor whether liquidity assessments should be adjusted based on changed market conditions. These procedures and tests are designed to assist a Fund in
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Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
determining its ability to meet redemption requests in various market conditions. In light of the dynamic nature of markets, there can be no assurance that these procedures and tests will enable a Fund to ensure that it has sufficient liquidity to meet redemption requests.
h. | Impact of Large Redemptions and Purchases of Fund Shares |
Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect a Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of a Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sale of portfolio securities to cover the redemption request settle. For additional information on redemptions, please see the Statement of Changes in Net Assets.
i. | Long-Short Strategy Risk |
The strategy used by Equity Long-Short Fund’s investment team may fail to produce the intended result. There is no guarantee that the use of long and short positions will succeed in limiting the Equity Long-Short Fund’s exposure to stock market movements, capitalization, sector swings or other risk factors.
j. | Market Risk |
Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in that market in which a Fund invests.
k. | Mid-Cap Securities Risk |
Certain Funds are subject to Mid-Cap Securities Risk. Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.
l. | Natural Resources Industry Risk |
The Global Natural Resources Fund concentrates its investments in the natural resources industry. The natural resources industry can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and tax and other government regulations. The securities of companies in the natural resources sector may experience more price volatility than securities of companies in other industries.
m. | Non-Diversified Fund Risk |
Because the European Equity Fund and Latin American Fund are non-diversified, the Funds may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on each Fund’s value and total return.
n. | Sector Risk |
To the extent that a Fund has a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Consumer Staples Sector Risk. To the extent the consumer staples sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. The consumer staples sector may be affected by the regulation of various product components and production methods, marketing campaigns and other factors affecting consumer demand. Tobacco companies, in particular, may be adversely affected by new laws, regulations and litigation. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may be influenced by unpredictable factors.
Financial Sector Risk. To the extent that the financials sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. The impact of more stringent capital requirements, recent or future regulation of any individual financial company, or recent or future regulation of the financials sector as a whole cannot be predicted. In recent years, cyber attacks and technology malfunctions and failures have become increasingly frequent in this sector and have caused significant losses.
Industrials Sector Risk. To the extent that the industrials sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. The industrials sector may be adversely affected by changes in the supply of and demand for products and services, product obsolescence, claims for environmental damage or product liability and general economic conditions, among other factors.
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Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
o. | Securities Selection Risk |
Each Fund’s investment team may take long positions in securities that underperform the stock market or other funds with similar investment objectives and strategies or take short positions in securities that have positive performance.
p. | Short Sale Risk |
Certain Funds are subject to Short Sale Risk. This is the risk that the price of a security sold short will increase in value between the time of the short sale and the time a Fund must purchase the security to return it to the lender. A Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Fund is unable, for whatever reason, to close out its short position. A loss on a short sale is increased by the amount of the premium or interest the Fund must pay to the lender of the security.
q. | Small-Cap Securities Risk |
Certain Funds are subject to Small-Cap Securities Risk. Stocks of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.
r. | Valuation Risk |
Certain Funds are subject to greater Valuation Risk than other funds. The lack of active trading markets may make it difficult to obtain an accurate price for a security held by a Fund.
Please read the prospectus for more detailed information regarding these and other risks.
7. Contingencies
In the normal course of business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds, and therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
8. Tax Information
As of April 30, 2016, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund were as follows:
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 20,870,629 | $ | 343,610 | $ | (2,579,679 | ) | $ | (2,236,069 | ) | ||||||
Asia-Pacific Smaller Companies Fund | 3,274,906 | 168,191 | (463,523 | ) | (295,332 | ) | ||||||||||
China Opportunities Fund | 17,987,966 | 1,014,931 | (4,451,696 | ) | (3,436,765 | ) | ||||||||||
Emerging Markets Fund | 7,878,673,920 | 858,680,423 | (1,408,997,585 | ) | (550,317,162 | ) | ||||||||||
Equity Long-Short Fund | 84,189,964 | 13,830,697 | (969,889 | ) | 12,860,808 | |||||||||||
European Equity Fund | 1,452,467 | 87,144 | (198,953 | ) | (111,809 | ) | ||||||||||
Global Equity Fund | 94,411,124 | 7,916,604 | (8,219,309 | ) | (302,705 | ) | ||||||||||
Global Natural Resources Fund | 23,312,513 | 1,874,735 | (3,727,889 | ) | (1,853,154 | ) | ||||||||||
International Equity Fund | 505,852,005 | 49,658,487 | (60,287,338 | ) | (10,628,851 | ) | ||||||||||
International Small Cap Fund | 74,039,238 | 9,389,936 | (6,223,036 | ) | 3,166,900 | |||||||||||
Japanese Equities Fund | 933,519 | 40,442 | (49,375 | ) | (8,933 | ) | ||||||||||
Latin American Equity Fund | 4,532,749 | 170,494 | (1,398,176 | ) | (1,227,682 | ) | ||||||||||
U.S. Mid Cap Equity Fund | 979,151 | 78,166 | (1,903 | ) | 76,263 | |||||||||||
U.S. Multi-Cap Equity Fund | 307,751,894 | 52,845,289 | (6,916,391 | ) | 45,928,898 | |||||||||||
U.S. Small Cap Equity Fund | 564,101,259 | 62,506,442 | (11,778,418 | ) | 50,728,024 |
Semi-Annual Report 2016
162
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
The tax character of distributions paid during the fiscal year ended October 31, 2015 was as follows (total distributions paid may differ from the Statements of Changes in Net Assets because for tax purposes dividends are recognized when actually paid):
Distributions paid from | ||||||||||||||||||||||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Return of Capital | Total Distributions Paid | ||||||||||||||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 22,860,018 | $ | 17,473,584 | $ | 40,333,602 | $ | – | $ | – | $ | 40,333,602 | ||||||||||||
Asia-Pacific Smaller Companies Fund | 393,488 | 666,089 | 1,059,577 | – | – | 1,059,577 | ||||||||||||||||||
China Opportunities Fund | 324,609 | – | 324,609 | – | – | 324,609 | ||||||||||||||||||
Emerging Markets Fund | 116,164,014 | 286,807,723 | 402,971,737 | – | – | 402,971,737 | ||||||||||||||||||
Equity Long-Short Fund | – | 50,623,727 | 50,623,727 | – | – | 50,623,727 | ||||||||||||||||||
European Equity Fund | 144,768 | 33,080 | 177,848 | – | – | 177,848 | ||||||||||||||||||
Global Equity Fund | 1,636,532 | – | 1,636,532 | – | – | 1,636,532 | ||||||||||||||||||
Global Natural Resources Fund | 426,587 | – | 426,587 | – | – | 426,587 | ||||||||||||||||||
International Equity Fund | 17,650,697 | – | 17,650,697 | – | – | 17,650,697 | ||||||||||||||||||
International Small Cap Fund | 3,232,930 | 13,534,873 | 16,767,803 | – | – | 16,767,803 | ||||||||||||||||||
Latin American Equity Fund | 53,178 | – | 53,178 | – | – | 53,178 | ||||||||||||||||||
U.S. Multi-Cap Equity Fund | 3,881,270 | 25,770,272 | 29,651,542 | – | – | 29,651,542 | ||||||||||||||||||
U.S. Small Cap Equity Fund | – | – | – | – | – | – |
Amounts listed as “–” are $0 or round to $0.
As of October 31, 2015, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Fund | Undistributed Tax Exempt Income | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Distributions Payable | Late Year Ordinary and Post-October Capital Loss Deferrals | Other Temporary Differences | Unrealized Appreciation/ Depreciation* | Accumulated Losses** | Total Accumulated Earnings (Deficit) | ||||||||||||||||||||||||||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | – | $ | 1,991,066 | $ | – | $ | – | $ | – | $ | – | $ | (3 | ) | $ | (40,650,091 | ) | $ | (145,325,612 | ) | $ | (183,984,640 | ) | ||||||||||||||||
Asia-Pacific Smaller Companies Fund | – | 56,179 | – | – | – | – | 2 | (2,538,358 | ) | (2,688,738 | ) | (5,170,915 | ) | |||||||||||||||||||||||||||
China Opportunities Fund | – | – | – | – | – | – | 3 | (3,440,766 | ) | (10,001,079 | ) | (13,441,842 | ) | |||||||||||||||||||||||||||
Emerging Markets Fund | – | 4,628,447 | 79,747,978 | – | – | – | – | (970,476,512 | ) | – | (886,100,087 | ) | ||||||||||||||||||||||||||||
Equity Long-Short Fund | – | – | 14,765,088 | – | – | (1,635,324 | ) | – | 15,520,142 | – | 28,649,906 | |||||||||||||||||||||||||||||
European Equity Fund | – | 14,767 | – | – | – | – | – | (126,802 | ) | (218,746 | ) | (330,781 | ) | |||||||||||||||||||||||||||
Global Equity Fund | – | 169,294 | – | – | – | – | – | (3,575,726 | ) | (28,377,696 | ) | (31,784,128 | ) | |||||||||||||||||||||||||||
Global Natural Resources Fund | – | 42,025 | – | – | – | – | (2 | ) | (5,499,082 | ) | (29,681,878 | ) | (35,138,937 | ) | ||||||||||||||||||||||||||
International Small Cap Fund | – | 981,491 | – | – | – | – | 1 | (44,297,378 | ) | (87,796,669 | ) | (131,112,555 | ) | |||||||||||||||||||||||||||
International Equity Fund | – | 430,275 | 8,210,179 | – | – | – | (2 | ) | 407,418 | – | 9,047,870 | |||||||||||||||||||||||||||||
Latin American Equity Fund | – | 7,654 | – | – | – | – | – | (2,134,769 | ) | (237,469 | ) | (2,364,584 | ) | |||||||||||||||||||||||||||
U.S. Mid Cap Equity Fund | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
U.S. Multi-Cap Equity Fund | – | 266,956 | 17,652,922 | – | – | – | (1 | ) | 79,833,523 | (22,995,339 | ) | 74,758,061 | ||||||||||||||||||||||||||||
U.S. Small Cap Equity Fund | – | – | – | – | – | (650,591 | ) | (1 | ) | 33,783,877 | (390,358,988 | ) | (357,225,703 | ) |
* | The difference between the book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to passive foreign investment companies and tax deferral of losses on wash sales. |
** | As of October 31, 2015, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the Treasury regulations, which expire in the years set forth below. |
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Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
As of October 31, 2015, for federal income tax purposes, capital loss carryforwards, as shown in the table below, were available to the extent provided by the regulations to offset future realized gains of each respective Fund through the years indicated.
Fund | Amount | Expires | ||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 82,083,341 | Unlimited (Short-Term) | |||||
Asia-Pacific (ex-Japan) Equity Fund | 63,242,271 | Unlimited (Long-Term) | ||||||
Asia-Pacific Smaller Companies Fund | 2,688,738 | Unlimited (Long-Term) | ||||||
China Opportunities Fund | 10,001,079 | 2017 (Short-Term) | ||||||
European Equity Fund | 218,746 | Unlimited (Long-Term) | ||||||
Global Equity Fund | 299,633 | 2016 (Short-Term) | ||||||
Global Equity Fund | 27,953,370 | 2017 (Short-Term) | ||||||
Global Equity Fund | 124,693 | Unlimited (Short-Term) | ||||||
Global Natural Resources Fund | 28,882,345 | 2017 (Short-Term) | ||||||
Global Natural Resources Fund | 23,468 | Unlimited (Short-Term) | ||||||
Global Natural Resources Fund | 776,065 | Unlimited (Long-Term) | ||||||
International Equity Fund | 84,636,377 | 2017 (Short-Term) | ||||||
International Equity Fund | 1,064,769 | Unlimited (Short-Term) | ||||||
International Equity Fund | 2,095,523 | Unlimited (Long-Term) | ||||||
Latin American Equity Fund | 7,131 | Unlimited (Short-Term) | ||||||
Latin American Equity Fund | 230,338 | Unlimited (Long-Term) | ||||||
U.S. Multi-Cap Equity Fund | 5,704,114 | 2016 (Short-Term) | ||||||
U.S. Multi-Cap Equity Fund | 17,291,225 | 2017 (Short-Term) | ||||||
U.S. Small Cap Equity Fund | 84,756,878 | 2016 (Short-Term) | ||||||
U.S. Small Cap Equity Fund | 305,602,110 | 2017 (Short-Term) |
Amounts listed as “–” are $0 or round to $0.
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
9. Significant Shareholders
As of April 30, 2016, the following Funds had shareholders with the percentage ownership indicated, which are considered significant shareholders (holdings greater than 5.0%) for financial reporting purposes:
Fund | Record Ownership % | Number of Account Owners | ||||
Asia-Pacific (ex-Japan) Equity Fund | 41.2 | % | 4 | |||
Asia-Pacific Smaller Companies Fund | 82.5 | 6 | ||||
China Opportunities Fund | 28.9 | 2 | ||||
Emerging Markets Fund | 56.1 | 4 | ||||
Equity Long-Short Fund | 64.6 | 5 | ||||
European Equity Fund | 90.3 | 3 | ||||
Global Equity Fund | 74.6 | 3 | ||||
Global Natural Resources Fund | 63.8 | 3 | ||||
International Equity Fund | 43.2 | 3 | ||||
International Small Cap Fund | 31.5 | 2 | ||||
Japanese Equities Fund | 96.0 | 1 | ||||
Latin American Equity Fund | 96.4 | 1 | ||||
U.S. Mid Cap Equity Fund | 96.0 | 1 | ||||
U.S. Multi-Cap Equity Fund | 12.2 | 1 | ||||
U.S. Small Cap Equity Fund | 49.0 | 3 |
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164
Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
10. Line of Credit
Effective August 15, 2015, the Trust, on behalf of each of the funds of the Trust (the “Borrowers”), entered into a 364-day credit agreement (the “Agreement”) with State Street Bank and Trust Company (the “Bank”). The Agreement provides for a revolving credit facility (the “Credit Facility”) for the amount of $250,000,000 to be utilized for temporary or emergency purposes to fund shareholder redemptions or other short-term liquidity purposes.
Principal on each outstanding loan made under the Agreement bears interest at a variable rate per annum equal to the higher of (a) the Federal Funds Rate as in effect of that day plus 1.25% or (b) the Overnight London Interbank Offered Rate as in effect on that day plus 1.25%. In addition, the Borrowers shall pay to the Bank a commitment fee at the rate of 0.18% per annum on the daily unused portion of the Credit Facility, as applicable, which is allocated among the Borrowers in such manner as is determined by the Board to be reasonable. For each Fund that borrowed under the Credit Facility during the fiscal year, the following table shows the average outstanding daily balance for the Fund under the Credit Facility and the average weighted interest rate paid by the Fund during the fiscal year.
Average Outstanding Daily Balance | Average Weighted Interest Rate | |||||||
Asia-Pacific (ex-Japan) Equity Fund | $ | 26,477,642 | 1.53 | % | ||||
Asia-Pacific Smaller Companies Fund | 289,350 | 1.41 | % | |||||
China Opportunities Fund | 792,486 | 1.39 | % | |||||
Emerging Markets Fund | 33,145,128 | 1.47 | % | |||||
Equity Long-Short Fund | 19,327,261 | 1.40 | % | |||||
European Equity Fund | 51,082 | 1.39 | % | |||||
Global Equity Fund | 3,630,732 | 1.38 | % | |||||
Global Natural Resources Fund | 80,900 | 1.40 | % | |||||
International Equity Fund | 4,594,764 | 1.45 | % | |||||
International Small Cap Fund | 2,612,264 | 1.43 | % | |||||
U.S. Multi-Cap Equity Fund | 362,984 | 1.42 | % |
11. Fund Reorganization
Effective February 25, 2015, the Global Equity Fund acquired all of the assets and assumed all of the liabilities of the Global Select Opportunities Fund. The acquisition was accomplished by a tax-free exchange as follows:
157,476 shares of the Global Select Opportunities Fund, fair valued at $6,178,775 for 451,005 shares of the Global Equity Fund.
The investment portfolio and cash of the Global Select Opportunities Fund with a fair value of $6,178,775 were the principal assets acquired by the Global Equity Fund. For financial reporting purposes, assets received and shares issued by the Global Equity Fund were recorded at value; however, the cost basis of the investments received from the Global Select Opportunities Fund was carried forward to align ongoing reporting of the Global Equity Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The Global Equity Fund acquired capital loss carryovers of $27,810,422 (subject to future annual limitations). Immediately prior to the reorganization, the net assets of the Global Select Opportunities Fund were $6,178,775.
Assuming that the Global Equity Fund reorganization had been completed on November 1, 2014, the pro forma results of operations for the year ended October 31, 2015 are as follows:
Net investment income | $ | 1,442,001 | ||
Net realized and unrealized loss from investments | 6,766,918 | |||
Net decrease in net assets resulting from operations | 8,208,919 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings of the Global Select Opportunities Fund that have been reflected in the statements of operations since February 25, 2015 for the Global Equity Fund.
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Notes to Financial Statements (continued)
April 30, 2016 (unaudited)
The chart below shows a summary of net assets, shares outstanding, net asset value per share, net unrealized appreciation/(depreciation), and accumulated net realized gains/(losses), before and after the reorganization.
Before Reorganization | After Reorganization | |||||||||||
Global Select Opportunities Fund | Global Equity Fund | Global Equity Fund | ||||||||||
Net Assets: | ||||||||||||
Class A/Class A | $ | 4,987,280 | $ | 67,762,995 | $ | 72,750,275 | ||||||
Class C/Class C | – | 4,029,590 | 4,029,590 | |||||||||
Class R/Class R | – | 1,906,287 | 1,906,287 | |||||||||
Institutional Service Class/Institutional Service Class | – | 4,899,984 | 4,899,984 | |||||||||
Institutional Class/ Institutional Class | 1,191,495 | 42,089,456 | 43,280,951 | |||||||||
Shares Outstanding: | ||||||||||||
Class A/Class A | 127,266 | 4,947,407 | 5,311,530 | |||||||||
Class C/Class C | – | 310,287 | 310,287 | |||||||||
Class R/Class R | – | 144,318 | 144,318 | |||||||||
Institutional Service Class/Institutional Service Class | – | 357,052 | 357,052 | |||||||||
Institutional Class/ Institutional Class | 30,210 | 3,069,115 | 3,155,997 | |||||||||
Net Asset Value per Share: | ||||||||||||
Class A/Class A | $ | 39.19 | $ | 13.70 | $ | 13.70 | ||||||
Class C/Class C | – | 12.99 | 12.99 | |||||||||
Class R/Class R | – | 13.21 | 13.21 | |||||||||
Institutional Service Class/Institutional Service Class | – | 13.72 | 13.72 | |||||||||
Institutional Class/ Institutional Class | 39.44 | 13.71 | 13.71 | |||||||||
Net unrealized appreciation/(depreciation) | 156,212 | 11,716,846 | 11,873,058 | |||||||||
Accumulated net realized gain/(loss) | (27,845,556 | ) | (3,895,237 | ) | (31,740,793 | ) |
12. Subsequent Events
Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or adjustments were required to the financial statements as of April 30, 2016, except as disclosed below.
At a meeting of the Board held on June 15, 2016 (the “Meeting”), the Board approved a Plan of Liquidation for each of the Aberdeen Asia-Pacific Smaller Companies Fund, Aberdeen Latin American Equity Fund and Aberdeen European Equity Fund, pursuant to which each Fund will be liquidated on or about August 15, 2016. Also at the Meeting, the Board approved an Agreement and Plan of Reorganization pursuant to which the Aberdeen Global Natural Resources Fund would be reorganized into the Aberdeen Global Equity Fund, subject to approval by the Aberdeen Global Natural Resources Fund’s shareholders (the “Reorganization”). The Board also approved a proposed Plan of Liquidation that provides for the complete liquidation of all of the assets of the Aberdeen Global Natural Resources Fund, which will only occur if the Reorganization is not approved by the Fund’s shareholders or is not consummated for any other reason. Proxy materials describing the proposed Reorganization and the Board’s considerations in approving the proposal will be mailed to shareholders of the Aberdeen Global Natural Resources Fund in anticipation of a special meeting of shareholders expected to be held in the fourth quarter of 2016. For more information please see each Fund’s prospectus dated February 29, 2016, as amended March 9, 2016 and supplemented to date.
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Shareholder Expense Examples (Unaudited)
As a shareholder of the Aberdeen Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and (2) ongoing costs, including investment advisory fees, administration fees, transfer agent out-of-pocket expenses, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Aberdeen Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, November 1, 2015 and continued to hold your shares at the end of the reporting period, April 30, 2016.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Actual Expenses Paid During Period” for the class of a Fund that you own to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of a Fund and other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads). Therefore, the information for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value, November 1, 2015 | Actual Ending Account Value, April 30, 2016 | Hypothetical Ending Account Value | Actual Expenses Paid During Period* | Hypothetical Expenses Paid During Period*1 | Annualized Expense Ratio** | |||||||||||||||||||||
Asia-Pacific | Class A | $ | 1,000.00 | $ | 979.90 | $ | 1,017.31 | $ | 7.48 | $ | 7.62 | 1.52% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 975.30 | $ | 1,013.63 | $ | 11.10 | $ | 11.31 | 2.26% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 978.50 | $ | 1,016.11 | $ | 8.66 | $ | 8.82 | 1.76% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 980.30 | $ | 1,018.40 | $ | 6.40 | $ | 6.52 | 1.30% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 979.30 | $ | 1,018.60 | $ | 6.20 | $ | 6.32 | 1.26% | |||||||||||||||
Asia-Pacific Smaller Companies Fund | Class A | $ | 1,000.00 | $ | 1,004.90 | $ | 1,015.32 | $ | 9.57 | $ | 9.62 | 1.92% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,001.70 | $ | 1,012.43 | $ | 12.44 | $ | 12.51 | 2.50% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,004.70 | $ | 1,014.47 | $ | 10.42 | $ | 10.47 | 2.09% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,007.30 | $ | 1,017.06 | $ | 7.84 | $ | 7.87 | 1.57% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,007.40 | $ | 1,017.40 | $ | 7.49 | $ | 7.52 | 1.50% | |||||||||||||||
China Opportunities Fund | Class A | $ | 1,000.00 | $ | 961.50 | $ | 1,015.32 | $ | 9.36 | $ | 9.62 | 1.92% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 958.30 | $ | 1,011.84 | $ | 12.76 | $ | 13.11 | 2.62% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 959.30 | $ | 1,013.33 | $ | 11.30 | $ | 11.61 | 2.32% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 962.80 | $ | 1,016.61 | $ | 8.10 | $ | 8.32 | 1.66% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 962.80 | $ | 1,016.81 | $ | 7.91 | $ | 8.12 | 1.62% | |||||||||||||||
Emerging Markets Fund | Class A | $ | 1,000.00 | $ | 1,035.10 | $ | 1,017.45 | $ | 7.54 | $ | 7.47 | 1.49% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,031.80 | $ | 1,014.42 | $ | 10.61 | $ | 10.52 | 2.10% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,032.50 | $ | 1,015.86 | $ | 9.15 | $ | 9.07 | 1.81% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,036.30 | $ | 1,018.40 | $ | 6.58 | $ | 6.52 | 1.30% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,036.30 | $ | 1,019.39 | $ | 5.57 | $ | 5.52 | 1.10% | |||||||||||||||
Equity Long-Short Fund | Class A | $ | 1,000.00 | $ | 987.70 | $ | 1,009.15 | $ | 15.62 | $ | 15.79 | 3.16% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 984.50 | $ | 1,006.02 | $ | 18.70 | $ | 18.90 | 3.79% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 987.00 | $ | 1,007.66 | $ | 17.09 | $ | 17.27 | 3.46% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 989.00 | $ | 1,010.05 | $ | 14.74 | $ | 14.89 | 2.98% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 989.20 | $ | 1,010.84 | $ | 13.95 | $ | 14.10 | 2.82% |
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Shareholder Expense Examples (Unaudited) (concluded)
Beginning Account Value, November 1, 2015 | Actual Ending Account Value, April 30, 2016 | Hypothetical Ending Account Value | Actual Expenses Paid During Period* | Hypothetical Expenses Paid During Period*1 | Annualized Expense Ratio** | |||||||||||||||||||||
European Equity Fund | Class A | $ | 1,000.00 | $ | 980.20 | $ | 1,018.05 | $ | 6.75 | $ | 6.87 | 1.37% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 976.60 | $ | 1,014.42 | $ | 10.32 | $ | 10.52 | 2.10% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 978.50 | $ | 1,016.91 | $ | 7.87 | $ | 8.02 | 1.60% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 980.60 | $ | 1,019.39 | $ | 5.42 | $ | 5.52 | 1.10% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 981.60 | $ | 1,019.39 | $ | 5.42 | $ | 5.52 | 1.10% | |||||||||||||||
Global Equity Fund | Class A | $ | 1,000.00 | $ | 986.30 | $ | 1,017.11 | $ | 7.70 | $ | 7.82 | 1.56% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 982.90 | $ | 1,013.97 | $ | 10.80 | $ | 10.97 | 2.19% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 984.80 | $ | 1,015.52 | $ | 9.28 | $ | 9.42 | 1.88% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 988.30 | $ | 1,018.95 | $ | 5.88 | $ | 5.97 | 1.19% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 988.10 | $ | 1,018.95 | $ | 5.88 | $ | 5.97 | 1.19% | |||||||||||||||
Global Natural Resources Fund | Class A | $ | 1,000.00 | $ | 1,037.20 | $ | 1,017.31 | $ | 7.70 | $ | 7.62 | 1.52% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,034.20 | $ | 1,014.12 | $ | 10.92 | $ | 10.82 | 2.16% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,036.20 | $ | 1,016.11 | $ | 8.91 | $ | 8.82 | 1.76% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,038.50 | $ | 1,018.95 | $ | 6.03 | $ | 5.97 | 1.19% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,038.50 | $ | 1,019.10 | $ | 5.88 | $ | 5.82 | 1.16% | |||||||||||||||
International Equity Fund | Class A | $ | 1,000.00 | $ | 982.40 | $ | 1,017.75 | $ | 7.05 | $ | 7.17 | 1.43% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 979.10 | $ | 1,014.47 | $ | 10.28 | $ | 10.47 | 2.09% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 980.70 | $ | 1,016.36 | $ | 8.42 | $ | 8.57 | 1.71% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 983.10 | $ | 1,018.75 | $ | 6.06 | $ | 6.17 | 1.23% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 983.80 | $ | 1,019.54 | $ | 5.28 | $ | 5.37 | 1.07% | |||||||||||||||
International Small Cap Fund | Class A | $ | 1,000.00 | $ | 1,029.70 | $ | 1,016.81 | $ | 8.18 | $ | 8.12 | 1.62% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,026.50 | $ | 1,013.43 | $ | 11.59 | $ | 11.51 | 2.30% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,027.90 | $ | 1,015.22 | $ | 9.78 | $ | 9.72 | 1.94% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,030.60 | $ | 1,017.26 | $ | 7.72 | $ | 7.67 | 1.53% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,031.60 | $ | 1,018.40 | $ | 6.57 | $ | 6.52 | 1.30% | |||||||||||||||
Japanese Equities Fund2 | Class A | $ | 1,000.00 | $ | 996.70 | $ | 1,018.35 | $ | 5.43 | $ | 6.57 | 1.31% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 993.00 | $ | 1,014.92 | $ | 8.28 | $ | 10.02 | 2.00% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 995.50 | $ | 1,017.11 | $ | 6.46 | $ | 7.82 | 1.56% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 997.90 | $ | 1,019.59 | $ | 4.40 | $ | 5.32 | 1.06% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 997.90 | $ | 1,019.89 | $ | 4.15 | $ | 5.02 | 1.00% | |||||||||||||||
Latin American Equity Fund | Class A | $ | 1,000.00 | $ | 1,180.30 | $ | 1,016.81 | $ | 8.78 | $ | 8.12 | 1.62% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,177.60 | $ | 1,013.43 | $ | 12.45 | $ | 11.51 | 2.30% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,181.10 | $ | 1,015.91 | $ | 9.76 | $ | 9.02 | 1.80% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,182.10 | $ | 1,018.40 | $ | 7.05 | $ | 6.52 | 1.30% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,182.10 | $ | 1,018.40 | $ | 7.05 | $ | 6.52 | 1.30% | |||||||||||||||
U.S. Mid Cap Equity Fund3 | Class A | $ | 1,000.00 | $ | 1,078.00 | $ | 1,006.02 | $ | 2.41 | $ | 2.32 | 1.39% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,077.00 | $ | 1,005.00 | $ | 3.46 | $ | 3.34 | 2.00% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,078.00 | $ | 1,005.60 | $ | 2.84 | $ | 2.74 | 1.64% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,079.00 | $ | 1,006.43 | $ | 1.98 | $ | 1.91 | 1.14% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,079.00 | $ | 1,006.67 | $ | 1.73 | $ | 1.67 | 1.00% | |||||||||||||||
U.S. Multi-Cap Equity Fund | Class A | $ | 1,000.00 | $ | 1,009.00 | $ | 1,019.00 | $ | 5.89 | $ | 5.92 | 1.18% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,005.30 | $ | 1,015.42 | $ | 9.47 | $ | 9.52 | 1.90% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,008.00 | $ | 1,017.70 | $ | 7.19 | $ | 7.22 | 1.44% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,010.70 | $ | 1,019.84 | $ | 5.05 | $ | 5.07 | 1.01% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,011.00 | $ | 1,020.39 | $ | 4.50 | $ | 4.52 | 0.90% | |||||||||||||||
U.S. Small Cap Equity Fund | Class A | $ | 1,000.00 | $ | 1,056.30 | $ | 1,017.80 | $ | 7.26 | $ | 7.12 | 1.42% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,052.40 | $ | 1,014.27 | $ | 10.87 | $ | 10.67 | 2.13% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,055.30 | $ | 1,016.61 | $ | 8.48 | $ | 8.32 | 1.66% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,057.30 | $ | 1,019.24 | $ | 5.78 | $ | 5.67 | 1.13% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,057.80 | $ | 1,019.24 | $ | 5.78 | $ | 5.67 | 1.13% |
* | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period). |
** | The expense ratio presented represents a six-month, annualized ratio. |
1 | Represents the hypothetical 5% return before expenses. |
2 | Information shown reflects values using the expense ratios and rates of return for the period November 30, 2015 (commencement of operations) to April 30, 2016. |
3 | Information shown reflects values using the expense ratios and rates of return for the period February 29, 2016 (commencement of operations) to April 30, 2016. |
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Supplemental Information (Unaudited)
ABERDEEN JAPANESE EQUITIES FUND
BOARD OF TRUSTEES’ CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS
Aberdeen Japanese Equities Fund (the “Fund”) is a new investment portfolio of the Aberdeen Funds (the “Trust” or the “Funds”). At an in-person meeting of the Board of Trustees (the “Board” or the “Trustees”) of the Trust held on October 13, 2015, the Board, including a majority of the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an initial period through June 30, 2017 the proposed investment advisory agreement with Aberdeen Asset Management, Inc. (the “Adviser”) with respect to the Fund and the proposed investment sub-advisory agreement among the Trust on behalf of the Fund, the Adviser and Aberdeen Asset Management Asia Limited (“AAMAL” or the Sub-Adviser”) (collectively, the “Agreements”). AAMAL is an affiliate of the Adviser. The Adviser and the Sub-Adviser are referred to collectively as the “Advisers.” In addition, Trustees, and the Independent Trustees separately with independent legal counsel (“Independent Trustee Counsel”), met in person on September 8, 2015 to review the materials provided and the relevant legal considerations (together with the in-person meeting held on October 13, 2015, the “Meetings”).
In considering the Agreements, the Board reviewed a variety of information provided by the Advisers relating to the Fund, the Agreements and the Advisers, including comparative performance, fee and expense information and other information regarding the nature, extent and quality of the services to be provided by the Advisers under their respective Agreements. The materials provided to the Board included, among other items: (i) information on the Fund’s advisory fees and other expenses, including information comparing the Fund’s proposed expenses to those of a peer group of funds and information about any applicable expense limitations and fee breakpoints; (ii) information about the expected profitability of the Agreements to the Advisers; and (iii) a memorandum from Independent Trustee Counsel on the responsibilities of the Board of Trustees in considering for approval the investment advisory agreement and investment sub-advisory arrangements under the 1940 Act and Delaware law. The Board of Trustees, including the Independent Trustees, also considered other matters such as (i) the Advisers’ financial condition; (ii) the performance of other similar funds or accounts managed by the Advisers as compared to a peer group of comparable funds; (iii) the Fund’s investment objective and strategies; (iv) the Advisers’ investment personnel and operations; (v) arrangements relating to the distribution of the Fund’s shares and related costs; (vi) the procedures employed to determine the value of the Fund’s assets; (vii) the proposed allocation of the Fund’s brokerage, if any, including, if applicable, allocations to brokers affiliated with the Advisers and the use, if any, of “soft dollars” to pay Fund expenses and to pay for research and other similar services; (viii) the resources devoted to, and the record of compliance by, other funds of the Trust with, the investment policies and restrictions, policies on personal securities transactions and other compliance policies; (ix) any “fall-out” benefits to the Advisers and their affiliates (together, “Aberdeen Group”) (i.e., ancillary benefits realized by the Advisers and their affiliates from the Advisers’ relationship with the Trust); and (x) possible conflicts of interest on the part of the Advisers or their affiliates. The Board also considered the nature, extent and quality of the services to be provided to the Fund by the Advisers’ affiliates. Throughout the process, the Trustees were afforded the opportunity to ask questions of and request additional materials from the Adviser and the Sub-Adviser.
In addition to the materials requested by the Trustees in connection with their consideration of the approval of the Agreements, the Trustees received materials in advance of each regular quarterly meeting of the Board that provided information relating to the services provided by the Advisers.
At the meeting held on October 13, 2015, the Agreements were approved for the Fund for an initial period to end on June 30, 2017. The Independent Trustees were advised by Independent Trustee Counsel throughout the process. The Independent Trustees also consulted in executive session with Independent Trustee Counsel regarding consideration of the approval of the Agreements. In considering whether to approve the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative in reaching their decision. Individual Trustees may have evaluated the information presented differently from one another, giving weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the factors listed below.
The nature, extent and quality of the services to be provided to the Fund under the Agreements. The Trustees considered the nature, extent and quality of the services to be provided by the Adviser and the Sub-Adviser to the Fund and the resources dedicated to the Fund by the Adviser and the Sub-Adviser and their affiliates. The Board considered, among other things, the Advisers’ investment experience, including the growth and development of Aberdeen Group’s global investment management activities. The Board also considered the background and experience of the Advisers’ senior management personnel and the qualifications, background and responsibilities of the portfolio managers that would be primarily responsible for the day-to-day portfolio management services for the Fund. The Board also considered the allocation of responsibilities among the Advisers. The Trustees considered not only the advisory and sub-advisory services to be provided by the Adviser and the Sub-Adviser, respectively, to the Fund, but also the administrative services to be provided by the Adviser to the Fund under a separate administration agreement. The Adviser’s role in coordinating the activities of the Trust’s other service providers was also considered. The Board also considered that it receives information on a regular basis from the Trust’s Chief Compliance Officer regarding the performance of the funds in the Trust and in addressing
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Supplemental Information (Unaudited) (continued)
performance matters. The Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and that provides a variety of fund and shareholder services. The Board also took into account its knowledge of and previous experience with the Advisers and the quality of the performance of the Advisers’ duties through Board meetings, discussions and reports during the preceding year in connection with the other funds in the Trust.
After reviewing these and related factors, the Board concluded that the nature, extent and quality of the services to be provided to the Fund supported the approval of the Agreements.
Comparable Performance of the Advisers. The Trustees received information about the Aberdeen Japanese Equity Composite (the “Composite”), which has a similar investment strategy as the Fund, over various time periods, including information that compared the performance of the Composite to the performance of comparable funds as determined by an independent third party. The Trustees also considered the Adviser’s and the Sub-Advisers’ performance and reputation generally, the performance of the Funds generally, and the historical responsiveness of the Adviser to Trustee questions about performance and the willingness of the Adviser and the Sub-Adviser to take steps intended to improve performance.
After reviewing these and related factors, the Trustees concluded that the performance of the Composite and the Advisers supported the approval of the Agreements.
The costs of the services to be provided and the profits expected to be realized by the Advisers and their affiliates from their relationships with the Fund. The Trustees considered the fees proposed to be charged to the Fund for advisory services as well as the expected total expense level of the Fund. This information included comparisons (provided both by the Advisers and also by an independent third party) of the Fund’s proposed advisory fee and expected total expense level and those of a peer group determined by an independent third party (the “Expense Group”) and information about the advisory fees charged by the Advisers to comparable Aberdeen funds (“comparable funds/accounts”). In comparing the fees payable by the Fund to the Advisers and their affiliates, the Board noted that the fees included both advisory and administrative fees. In considering the fees charged to the comparable funds/accounts, the Trustees considered, among other things, management’s discussion of the differences required to manage the different types of accounts. In evaluating the Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of the Fund.
The Trustees considered that the sub-advisory fees for the Fund would be paid by the Adviser, not the Fund, out of its advisory fees. The Board also considered that the Adviser had agreed to enter into an expense limitation agreement with the Fund, pursuant to which the Adviser would agree to waive a portion of its advisory fee and/or to reimburse certain expenses as a means of limiting the Fund’s total annual operating expenses for a period of time.
The Trustees also considered the compensation directly or indirectly expected to be received by the Adviser and its affiliates from their relationship with the Fund. The Trustees reviewed information provided by the Adviser and the Sub-Adviser as to their expected profitability. The Trustees also considered information about the allocation of expenses used to calculate profitability. When reviewing profitability, the Trustees also considered information about the expense levels of the Fund and that the Adviser agreed to implement an expense limitation with respect to the Fund for at least its first year of operation.
After reviewing these and related factors, the Board concluded that the proposed advisory and sub-advisory fees were fair and reasonable, and that the anticipated costs of these services generally and the related estimated profitability of the Adviser and its affiliates from their relationships with the Fund were reasonable and supported the approval of the Agreements.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and the Sub-Adviser and whether those economies would be shared with the Fund through breakpoints in their investment advisory fee, fee waivers or expense limitations. The Trustees noted that the Fund would be subject to an expense limitation for a minimum of twelve months whereby the Adviser agreed to limit the Fund’s total expenses. The Board took into account the Adviser’s and the Sub-Adviser’s discussion of potential economies of scale with respect to the Fund. The Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the estimated profitability of the Adviser and its affiliates as a result of their relationship with the Fund, as previously discussed. The Board also considered the potential effect of the Fund’s growth and size on fees, noting that if the Fund’s assets increase over time, the Fund may realize additional economies of scale to the extent its assets increase proportionally more than items of expense do.
After reviewing these and related factors, the Board concluded that the advisory and sub-advisory fee structure was reasonable and appropriately reflected potential economies of scale to be shared between the Fund and the Advisers, and supported the approval of the Agreements. The Trustees also considered other factors, which included but were not limited to: whether the Aberdeen Funds have operated in accordance with their investment objectives and the Aberdeen Funds’ record of compliance with their investment restrictions, and the compliance programs
of the Trust and the Adviser; the compliance-related resources the Adviser and its affiliates were expected to provide to the Fund; the nature,
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Supplemental Information (Unaudited) (continued)
quality, cost and extent of administrative services to be performed by the Adviser under the administration agreement; “fallout benefits” to the Adviser, including the benefits of research that may be made available to the Adviser by reason of brokerage commissions generated by the Fund’s securities transactions or reputational and other indirect benefits; and the possible conflicts of interest associated with fallout benefits and other potential benefits and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of Independent Trustee Counsel, the Trustees, including a majority of the Independent Trustees, concluded that approval of the Agreements would be in the best interests of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements for an initial period to run through June 30, 2017.
ABERDEEN U.S. MID CAP EQUITY FUND
BOARD OF TRUSTEES’ CONSIDERATION OF ADVISORY AGREEMENT
Aberdeen U.S. Mid Cap Equity Fund (the “Fund”) is a new investment portfolio of the Aberdeen Funds (the “Trust” or the “Funds”). At an in-person meeting of the Board of Trustees (the “Board” or the “Trustees”) of the Trust held on December 15, 2015, the Board, including a majority of the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an initial two-year period the proposed investment advisory agreement with Aberdeen Asset Management, Inc. (the “Adviser”) with respect to the Fund (the “Agreement”).
In considering the Agreement, the Board reviewed a variety of information provided by the Adviser relating to the Fund, the Agreement and the Adviser, including comparative performance, fee and expense information and other information regarding the nature, extent and quality of the services to be provided by the Adviser under the Agreement. The materials provided to the Board included, among other items: (i) information on the Fund’s advisory fees and other expenses, including information comparing the Fund’s proposed expenses to those of a peer group of funds and information about any applicable expense limitations and fee breakpoints; (ii) information about the expected profitability of the Agreement to the Adviser; and (iii) a memorandum from Independent Trustees’ independent legal counsel (“Independent Trustee Counsel”) on the responsibilities of the Board of Trustees in considering for approval the investment advisory agreement under the 1940 Act and Delaware law. The Board of Trustees, including the Independent Trustees, also considered other matters such as (i) the Adviser’s financial condition; (ii) the performance of other similar funds or accounts managed by the Adviser as compared to a peer group of comparable funds; (iii) the Fund’s investment objective and strategies; (iv) the Adviser’s investment personnel and operations; (v) arrangements relating to the distribution of the Fund’s shares and related costs; (vi) the procedures employed to determine the value of the Fund’s assets; (vii) the proposed allocation of the Fund’s brokerage, if any, including, if applicable, allocations to brokers affiliated with the Adviser and the use, if any, of “soft dollars” to pay Fund expenses and to pay for research and other similar services; (viii) the resources devoted to, and the record of compliance by, other funds of the Trust with, the investment policies and restrictions, policies on personal securities transactions and other compliance policies; (ix) any “fall-out” benefits to the Adviser and its affiliates (together, “Aberdeen Group”) (i.e., ancillary benefits realized by the Adviser and its affiliates from the Adviser’s relationship with the Trust); and (x) possible conflicts of interest on the part of the Adviser or its affiliates. The Board also considered the nature, extent and quality of the services to be provided to the Fund by the Adviser’s affiliates. Throughout the process, the Trustees were afforded the opportunity to ask questions of and request additional materials from the Adviser.
In addition to the materials requested by the Trustees in connection with their consideration of the approval of the Agreement, the Trustees received materials in advance of each regular quarterly meeting of the Board that provided information relating to the services provided by the Adviser.
At the meeting held on December 15, 2015, the Agreement was approved for the Fund for an initial two-year period. The Independent Trustees were advised by Independent Trustee Counsel throughout the process. The Independent Trustees also consulted in executive session with Independent Trustee Counsel regarding consideration of the approval of the Agreement. In considering whether to approve the Agreement, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative in reaching their decision. Individual Trustees may have evaluated the information presented differently from one another, giving weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreement included the factors listed below.
The nature, extent and quality of the services to be provided to the Fund under the Agreement. The Trustees considered the nature, extent and quality of the services to be provided by the Adviser to the Fund and the resources dedicated to the Fund by the Adviser and its affiliates. The Board considered, among other things, the Adviser’s investment experience, including the growth and development of Aberdeen Group’s global investment management activities. The Board also considered the background and experience of the Adviser’s senior management personnel and the qualifications, background and responsibilities of the portfolio managers that would be primarily responsible for the day-to-day portfolio management services for the Fund. The Board also considered the allocation of responsibilities to the Adviser. The Trustees considered not only
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Supplemental Information (Unaudited) (continued)
the advisory services to be provided by the Adviser to the Fund, but also the administrative services to be provided by the Adviser to the Fund under a separate administration agreement. The Adviser’s role in coordinating the activities of the Trust’s other service providers was also considered. The Board also considered that it receives information on a regular basis from the Trust’s Chief Compliance Officer regarding the performance of the funds in the Trust and in addressing performance matters. The Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and that provides a variety of fund and shareholder services. The Board also took into account its knowledge of and previous experience with the Adviser and the quality of the performance of the Adviser’s duties through Board meetings, discussions and reports during the preceding year in connection with the other funds in the Trust.
After reviewing these and related factors, the Board concluded that the nature, extent and quality of the services to be provided to the Fund supported the approval of the Agreement.
Comparable Performance of the Adviser. The Trustees received information about the Aberdeen Small Cap Equity Composite and the Aberdeen Large Cap Equity Composite (each, a “Composite,” and together, the “Composites”), which included information that compared the performance of each Composite to the performance of a benchmark. It was noted that since a U.S. Equity Mid Cap strategy does not yet exist as a separate composite, a new composite will be created to reflect the stand-alone strategy. The Trustees also considered the Adviser’s performance and reputation generally, the performance of the funds generally, the historical responsiveness of the Adviser to Trustee questions about performance and the willingness of the Adviser to take steps intended to improve performance.
After reviewing these and related factors, the Trustees concluded that the performance of the Composites and the Adviser supported the approval of the Agreement.
The costs of the services to be provided and the profits expected to be realized by the Adviser and its affiliates from its relationships with the Fund. The Trustees considered the fees proposed to be charged to the Fund for advisory services as well as the expected total expense level of the Fund. This information included comparisons (provided both by the Adviser and also by an independent third party) of the Fund’s proposed advisory fee and expected total expense level and those of a peer group determined by an independent third party (the “Expense Group”) and information about the advisory fees charged by the Adviser to comparable Aberdeen funds (“comparable funds/accounts”). In comparing the fees payable by the Fund to the Adviser and its affiliates, the Board noted that the fees included both advisory and administrative fees. In considering the fees charged to the comparable funds/accounts, the Trustees considered, among other things, management’s discussion of the differences required to manage the different types of accounts. In evaluating the Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of the Fund.
The Board also considered that the Adviser had agreed to enter into an expense limitation agreement with the Fund, pursuant to which the Adviser would agree to waive a portion of its advisory fee and/or to reimburse certain expenses as a means of limiting the Fund’s total annual operating expenses for a period of time.
The Trustees also considered the compensation directly or indirectly expected to be received by the Adviser and its affiliates from their relationship with the Fund. The Trustees reviewed information provided by the Adviser as to its expected profitability. The Trustees also considered information about the allocation of expenses used to calculate profitability. When reviewing profitability, the Trustees also considered information about the expense levels of the Fund and that the Adviser agreed to implement an expense limitation with respect to the Fund for at least its first year of operation.
After reviewing these and related factors, the Board concluded that the proposed advisory fee was fair and reasonable, and that the anticipated costs of these services generally and the related estimated profitability of the Adviser and its affiliates from their relationships with the Fund were reasonable and supported the approval of the Agreement.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies would be shared with the Fund through breakpoints in their investment advisory fee, fee waivers or expense limitations. The Trustees noted that the Fund would be subject to an expense limitation for a minimum of twelve months whereby the Adviser agreed to limit the Fund’s total expenses. The Board took into account the Adviser’s discussion of potential economies of scale with respect to the Fund. The Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the estimated profitability of the Adviser and its affiliates as a result of their relationship with the Fund, as previously discussed. The Board also considered the potential effect of the Fund’s growth and size on fees, noting that if the Fund’s assets increase over time, the Fund may realize additional economies of scale to the extent its assets increase proportionally more than items of expense do.
After reviewing these and related factors, the Board concluded that the advisory fee structure was reasonable and appropriately reflected potential economies of scale to be shared between the Fund and the Adviser, and supported the approval of the Agreement.
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Supplemental Information (Unaudited) (concluded)
The Trustees also considered other factors, which included but were not limited to: whether the Aberdeen Funds have operated in accordance with their investment objectives and the Aberdeen Funds’ record of compliance with their investment restrictions, and the compliance programs of the Trust and the Adviser; the compliance-related resources the Adviser and its affiliates were expected to provide to the Fund; the nature, quality, cost and extent of administrative services to be performed by the Adviser under the administration agreement; “fallout benefits” to the Adviser, including the benefits of research that may be made available to the Adviser by reason of brokerage commissions generated by the Fund’s securities transactions or reputational and other indirect benefits; and the possible conflicts of interest associated with fallout benefits and other potential benefits and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of Independent Trustee Counsel, the Trustees, including a majority of the Independent Trustees, concluded that approval of the Agreement would be in the best interests of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreement for an initial two-year period.
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FACTS | WHAT DO ABERDEEN FUNDS DO WITH YOUR PERSONAL INFORMATION? | |||||||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |||||||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
· Social Security number and account balances
· Transaction history and assets
· Checking account information and wire transfer instructions |
| ||||||
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Aberdeen Funds choose to share; and whether you can limit this sharing. | |||||||
Reasons we can share your personal information | Do Aberdeen Funds share? | | Can you limit this sharing? | | ||||
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||||||
For our marketing purposes— to offer our products and services to you | Yes | Yes | ||||||
For joint marketing with other financial companies | No | We don’t share | ||||||
For our affiliates’ everyday business purposes— information about your transactions and experiences | Yes | No | ||||||
For our affiliates’ everyday business purposes— information about your creditworthiness | No | We don’t share | ||||||
For our affiliates to market to you | No | We don’t share | ||||||
For nonaffiliates to market to you | No | We don’t share | ||||||
To limit our sharing | · Call 1-800-522-5465
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice.
However, you can contact us at any time to limit our sharing. |
| ||||||
Questions? | www.aberdeen-asset.us |
Page 2 |
Who we are | ||
Who is providing this notice? | Aberdeen’s North American Funds (collectively referred to as “Aberdeen Funds”) | |
What we do | ||
How do Aberdeen Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | |
How do Aberdeen Funds collect my personal information? | We collect your personal information, for example, when you:
· Open an account or give us your contact information
· Provide account information or make wire transfers
· Make deposits or withdrawals from your account | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
· Sharing for affiliates’ everyday business purposes—information about your creditworthiness
· Affiliates from using your information to market to you
· Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to everyone on your account. | |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
· Our affiliates include companies with an Aberdeen Asset Management name and wholly-owned subsidiaries of Aberdeen Asset Management PLC, a global financial services company. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
· Aberdeen Funds do not share personal information with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
· Aberdeen Funds don’t jointly market. | |
Other important information | ||
This Privacy Notice is being provided by Aberdeen Funds and Aberdeen Investment Funds, each a U.S.-registered open-end investment company, and North-American-registered closed-end investment companies managed by Aberdeen Asset Management Inc. or its affiliates (collectively, North American Funds). |
Corporate Information
Trustees
P. Gerald Malone, Chairman
Martin J. Gilbert
Richard H. McCoy
Neville J. Miles
Peter D. Sacks
John T. Sheehy
Warren C. Smith
John F. Solan, Jr.
Officers
Bev Hendry, President and Chief Executive Officer
Jeffrey Cotton, Chief Compliance Officer and Vice President
Andrea Melia, Treasurer and Chief Financial Officer
Megan Kennedy, Secretary and Vice President
Brad Crombie, Vice President
Lucia Sitar, Vice President
Alan Goodson, Vice President
Adam McCabe, Vice President
Jennifer Nichols, Vice President
Hugh Young, Vice President
Russell Barlow, Vice President
Eric Olsen, Assistant Treasurer
Brian O’Neill, Assistant Treasurer
Investment Manager
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Fund Administrator
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Transfer Agent
Boston Financial Data Services, Inc.
30 Dan Road
Canton, MA 02021
Distributor
Aberdeen Fund Distributors LLC
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Sub-Administrator, Custodian & Fund Accountant
State Street Bank and Trust Company
1 Iron Street 5th Floor
Boston, MA 02110
Independent Registered Public Accounting Firm
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Fund Counsel
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 aberdeen-asset.us |
AOE-0140-SAR
Aberdeen Funds
Asset Allocations Series
Semi-Annual Report
April 30, 2016
Aberdeen Diversified Alternatives Fund
Aberdeen Diversified Income Fund
Aberdeen Dynamic Allocation Fund
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Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 866-667-9231 to request a prospectus, or download a prospectus at www.aberdeen-asset.us. Please read it carefully before investing any money.
Investing in mutual funds involves risk, including possible loss of principal.
Aberdeen Funds is distributed by Aberdeen Fund Distributors LLC, Member FINRA, 1735 Market Street, 32nd Floor, Philadelphia, PA 19103.
Aberdeen Asset Management Inc. (AAMI) has been registered as an investment adviser under the Investment Advisers Act of 1940 since August 23, 1995.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The complete schedule of portfolio holdings for each fund of Aberdeen Funds (each, a “Fund” and collectively, the “Funds”) is included in the Funds’ semi-annual and annual reports to shareholders. Aberdeen Funds also files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q filings are available on the Commission’s website at http://www.sec.gov. The Funds’ Form N-Q filings may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on www.aberdeen-asset.us or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-667-9231. The information is also included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.aberdeen-asset.us and on the Commission’s website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available by August 30 of the relevant year: (i) upon request and without charge by calling 1-866-667-9231; and (ii) on the Commission’s website at www.sec.gov.
The performance of the global financial markets varied during the six-month period ended April 30, 2016. There were disparate returns among some of the various regional market indices—even within asset classes. There were several periods of volatility, attributable partly to investors’ concerns regarding the direction of U.S. Federal Reserve (Fed) monetary policy, economic growth in China and the ongoing slump in global oil and commodity prices. However, global equities rallied towards the end of the reporting period amid an upturn in the oil and commodity markets, more clarity on U.S. monetary policy, as well as the European Central Bank’s (ECB’s) introduction of fresh economic stimulus measures.
The Morgan Stanley Capital International (MSCI) World Index, a global equity market benchmark, returned -0.7% for the reporting period. Large-cap U.S. stocks finished in positive territory and outperformed their developed-market peers in Europe and Asia. The U.S. broader-market S&P 500 Index rose 0.4%, versus the -3.9% and -1.3% returns of the FTSE Europe Index and the MSCI All Country (AC) Asia-Pacific Index, respectively, for the period. Emerging markets stocks, as represented by the MSCI Emerging Markets Index, posted a virtually flat return for the period. The strong rebound in commodity prices propelled the S&P Global Natural Resources Index to a gain of 11.3%, with particular strength in the previously beaten-down metals and mining sector.
The U.S. equity market provided mixed performance over the reporting period, with shares of mid- and large-cap companies finishing modestly higher. Small-cap stocks produced negative returns, as their strong performance in March and April 2016 could not offset steep losses earlier in the reporting period. U.S. employment and personal income data were generally upbeat during the period; however, there was a notable slowdown in economic growth despite an increase in consumer spending. On the corporate earnings front, we believe that the persistently low interest rate environment and revised market expectations that the Fed may proceed more cautiously with future rate increases may lead banks to moderate their expectations for earnings later in 2016. In contrast, energy and industrial companies reported first-quarter 2016 results that may signal that their businesses are stabilizing—perhaps even improving in some cases.
Shares of European companies were the weakest global equity performers over the reporting period. In addition to investors’ concerns about global growth and declining oil prices, these stocks were exposed to several negative catalysts unique to the market—most notably the UK’s referendum on European Union (EU) membership and lingering geopolitical worries resulting from the terror attacks in Paris and Brussels. However, equity prices gained ground late in the period, as the ECB’s aggressive monetary easing, including a reduction in its deposit rate to -0.4%, buoyed investor sentiment. The uncertainty surrounding the EU membership referendum and relatively sluggish economic data hindered the performance of UK stocks, which ended the reporting period with a virtually flat return, as measured by the FTSE All Share Index.
Similar to many of their global market peers, Asian equities partially counterbalanced losses earlier in the reporting period with a turnaround in March and April 2016 on investors’ optimism regarding rising oil and commodity prices and global central bank monetary policy. The Bank of Japan’s surprise move to impose negative interest rates also had a positive impact. Market sentiment in India initially waned after the government failed to implement two key reforms—one on land acquisition and the other, a nationwide goods-and-services tax. However, losses subsequently were trimmed after the release of the latest budget, as the government appeared to stay on course with fiscal consolidation and increased its efforts to boost the rural economy. The upturn in commodity prices in the second half of the reporting period also improved the outlook for oil-exporting nations such as Malaysia and helped their market benchmark indices to stage a recovery. The Singapore stock market’s rebound was attributable in part to better-than-expected operating results in the banking sector. Although domestic lenders reported higher loan loss provisions, they made significant efforts to disclose details of their exposure to both China and the commodities market.
Although the MSCI Emerging Markets Index was basically unchanged during the reporting period, this was not indicative of the substantial dichotomy in performance among individual emerging market countries. Weakness in China and India offset notable strength in Brazil and Turkey. A sharp sell-off in Chinese stocks in response to slowing growth and the government’s devaluation of the yuan against the U.S. dollar, along with the continued decline in oil prices, initially triggered bouts of investor risk aversion. However, markets reversed direction and moved higher in the latter half of the reporting period. People’s Bank of China Governor Zhou Xiaochuan subsequently downplayed the continued depreciation of the yuan and refuted speculation of tighter capital controls. Other contributors to the rally included a rebound in commodity prices, as well as the Brazilian Senate’s much-anticipated vote to impeach troubled President Dilma Rousseff amid accusations of fiscal mismanagement and her alleged ties to the ongoing scandal at state-owned oil company Petrobras.
Global fixed-income securities significantly outperformed their equity counterparts in an environment of generally low investor risk appetite over the reporting period. Investment-grade bonds, as measured by the Barclays Global Aggregate Bond Index, gained 6.1%. Although investors questioned the effectiveness of negative interest rates imposed by the central banks in Europe and Japan, they appeared to be encouraged that monetary policy generally remained loose, as Asian central banks continued to reduce interest rates and the Fed adopted a more dovish monetary policy stance. The performance of global high-yield securities lagged that of investment-grade credits over the period, as the asset class has greater exposure to the volatility of commodity prices. The Bank of America Merrill Lynch Global High Yield Constrained Index returned 2.9%, led by emerging markets debt.
Outlook
During the six-month reporting period, we saw significant volatility and strong rallies in certain regions and sectors which do not necessarily reflect a corresponding positive change in fundamentals. We remain mindful of slowing global growth and uncertainty over monetary policymakers’ next steps, particularly in the U.S., where dollar strength weighs on corporate profitability. The risk of acceleration in China’s slowdown, or of a poor policy response to prevent it, also seems critical, in our view. In such an unstable environment, we advocate caution in setting expectations for corporate earnings, but we believe that we are also poised to take advantage of opportunities that market uncertainty creates.
We anticipate that global equities may remain volatile in the near term. Specifically, we believe that investors may return to a more cautious mood, given the highly anticipated Fed meeting in June, followed by the referendum on EU membership in the UK. Many unknowns remain, in our view: investors are wary of the effectiveness of central bank action; governments need to implement more proactive reforms; and there does not appear to be a sustained demand for commodities. We believe that all of these factors raise the specter of a protracted slump in the global financial markets. Notwithstanding the unpredictable climate, we maintain confidence in our equity investment process of bottom-up, fundamental research, choosing stocks of companies that we believe are well-managed market-leaders with efficient operations.
Hugh Young
Managing Director
Aberdeen Asset Management
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
2016 Semi-Annual Report
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Aberdeen Diversified Alternatives Fund (Unaudited)
The Aberdeen Diversified Alternatives Fund (Institutional Class shares net of fees) returned -1.49% for the six-month period ended April 30, 2016, versus the 0.09% return of its primary benchmark, the Citigroup 3-Month Treasury Bill Index, and the 0.43% return of its secondary benchmark, the S&P 500 Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Alternative Multi-Strategy Funds (consisting of 81 funds), as measured by Lipper, Inc., was -1.21%.
The focus for many global financial market investors at the outset of the reporting period was the timing of the Federal Reserve’s (Fed’s) next interest-rate hike, with most market observers predicting that the Fed would begin to raise rates following its meeting in mid-December 2015. Major news flow during the month of November diverted investors’ attention to geopolitical events—most notably the terrorist attacks in Paris and Turkey’s downing of a Russian fighter jet. While the true economic impact of these events was relatively minor, the political and social consequences were more significant. Regarding the financial markets, December was a volatile ride of up-and-down moves in the S&P 500 Index, including a sharp run-up prior to the Fed’s mid-month meeting, a steep decline immediately following it, and then a subsequent recovery—all of which occurred over approximately nine days of market activity. In this environment, U.S. small-cap stocks posted the largest declines in December, while international developed-market and emerging-market equities also lost ground as measured by the MSCI World ex USA and MSCI Emerging Markets indices, respectively. Most U.S. fixed-income segments were down modestly, though riskier assets such as leveraged loans and global high-yield bonds saw greater declines. Global fixed-income exposures were more mixed, as global developed-market government securities recorded positive returns on U.S. dollar weakness, while emerging-markets debt finished in negative territory in December.
Against this backdrop, global financial markets experienced an extraordinarily difficult start to 2016, but managed to regain most losses with a strong rebound in the second half of the first quarter of the year. Lackluster levels of economic growth helped push credit risk higher globally, thereby creating a negative feedback loop which weighed on investors’ risk appetite. Growth metrics in both the U.S. and elsewhere remained inconsistent and were overwhelmed at the beginning of the year by a steady array of negative headlines. Economic weakness in China and the continued disarray in the energy sector cast doubts on growth prospects across the world.
Risk assets reflected this weakness with heightened volatility and losses across a range of asset classes in January and early February. Central banks’ monetary policies remained front and center in the minds of investors across global markets, and speculation around the pace of further Fed monetary policy tightening (if any) projected for the end of 2016 was a key focus of market participants. This was partially offset by more dovish comments from other major central banks; however, market (and consumer) skepticism around the impact of such policies at least temporarily gained the upper hand, with diminishing returns becoming a factor. Although U.S. growth remained sluggish, the reporting period ended on a much stronger note as risk assets across the board firmed considerably through the month of March and into April. A significant rally across commodity markets, especially oil, was a key contributor to the upturn, along with improving U.S. economic data, more dovish–than-expected Fed comments, and more aggressive recent steps by the European Central Bank (ECB).
While markets have recovered rather quickly since January as market fundamentals have firmed, we think that latent volatility will remain a persistent brake on risk assets, as global growth momentum remains inconsistent and global monetary policy diverges more forcefully in the second half of 2016. We also see central bank policy remaining front and center in the minds of global market participants. We think that the pace of Fed tightening over the back end of 2016 will remain a key source of concern for investors, but the risk environment has been helped by Fed Chair Janet Yellen’s recently dovish stances alongside more aggressive recent actions by the ECB. Market skepticism about the impact of such policies may have receded somewhat, but concerns that policy action has reached the point of diminishing returns may remain. U.S. growth metrics have indeed firmed since earlier in 2016, and talk of recessionary-type numbers creeping in on the manufacturing and services sides seem to have faded for now, in our view. Nonetheless, there are still concerns about the durability of the recent firmness in the energy sector, given significant capacity worldwide and lackluster growth rates in general.
The six-month reporting period was challenging in terms of performance across several strategies. The Fund’s exposures to Gotham Neutral Fund and Arbitrage Event Driven Fund were positive contributors to performance. The Fund’s holdings in Eaton Vance Floating Rate Fund and iShares TIPS Bond ETF, an exchange-traded fund, performed well in the generally favorable interest-rate environment during the period and bolstered performance. Conversely, a significant detractor from Fund performance for the reporting period was the holding in Deutsche x-Trackers MSCI Japan Hedged Equity Fund, a currency-hedged equity strategy that generally benefits from yen weakening that faced significant headwinds from the yen strengthening vs. the U.S. dollar during the period. Fund performance also was hampered by the positions in Blackrock Global Long-Short Equity Fund, Boston Partners Long-Short Research Fund and First Trust Health Care AlphaDex Fund.
At the end of the reporting period on April 30, 2016, the Fund was invested in line with its alternatives orientation and lower-volatility objective, and we believe that it is consistent with our current views on the global macroeconomic outlook. In terms of asset-class exposures, we remain significantly focused on minimizing downside capture;1 therefore, we are maintaining the Fund’s positioning in less correlated2 and lower-beta3 assets as a hedge against near-term volatility.
Semi-Annual Report 2016
2
1 | The downside market capture ratio is used to evaluate an investment manager’s performance relative to an index during periods in which that index has declined. |
2 | Correlation is a statistical measure of how two securities move in relation to each other. |
3 | Beta is a measure of the volatility of a security or a portfolio in comparison to the market as a whole. |
Aberdeen Diversified Alternatives Fund (Unaudited) (concluded)
Portfolio Management
Aberdeen Investment Solutions Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
The Fund is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and underlying funds. The Fund will be affected by stock and bond market risks, among others.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities, and are subject to different accounting and regulatory standards, political and economic risks and, to the extent denominated in foreign currencies, currency exchange rate risk (unless otherwise hedged). These risks are enhanced in emerging market countries.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
The Fund invests a significant proportion of its assets in non-traditional asset classes, which may involve riskier types of securities or investments than those offered by other asset classes.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
3
Aberdeen Diversified Alternatives Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | (1.69% | ) | (5.14% | ) | 1.87% | 2.51% | |||||||||||
w/SC2 | (7.32% | ) | (10.59% | ) | 0.67% | 1.91% | ||||||||||||
Class C | w/o SC | (1.95% | ) | (5.70% | ) | 1.14% | 1.78% | |||||||||||
w/SC3 | (2.92% | ) | (6.63% | ) | 1.14% | 1.78% | ||||||||||||
Class R4 | w/o SC | (1.82% | ) | (5.37% | ) | 1.53% | 2.21% | |||||||||||
Institutional Service Class4,5 | w/o SC | (1.49% | ) | (4.80% | ) | 2.09% | 2.62% | |||||||||||
Institutional Class4 | w/o SC | (1.49% | ) | (4.80% | ) | 2.15% | 2.79% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. Returns also incorporate the performance of a predecessor fund (the “Predecessor Fund”) from inception to June 23, 2008. Prior to the change of investment objective and strategy of the Fund effective September 24, 2012, the Fund and the Predecessor Fund had substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (September 24, 2012) are based on the previous performance of the Fund’s Class A shares. This performance is substantially similar to what the Institutional Service Class shares would have produced because both classes invest in the same portfolio of securities. Returns for the Institutional Service Class shares would only differ to the extent of the differences in expenses of the two classes. |
Semi-Annual Report 2016
4
Aberdeen Diversified Alternatives Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Diversified Alternatives Fund, the Citigroup 3-Month Treasury Bill Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Citigroup 3-Month Treasury Bill Index consists of the last three-month Treasury bill issues and measures monthly returns equivalents of yield averages that are not marked to market.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Performance returns reflect fee waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Mutual Funds | 81.2% | |||
Exchange Traded Funds | 12.7% | |||
Repurchase Agreement | 6.1% | |||
Other assets in excess of liabilities | –% | |||
100.0% |
Top Industries | ||||
Alternative Investment | 62.0% | |||
Fixed Income Funds | 27.8% | |||
Equity Funds | 4.1% | |||
Other | 6.1% | |||
100.0% |
Amounts | listed as “–” are 0% or round to 0% |
Top Holdings* | ||||
Gotham Neutral Fund, Institutional Class | 14.1% | |||
Boston Partners Long/Short Research Fund, Institutional Class | 12.9% | |||
Eaton Vance Floating-Rate Fund, Class I | 10.1% | |||
AQR Managed Futures Strategy Fund, Class I | 10.0% | |||
BlackRock Global Long/Short Equity Fund, Institutional Class | 10.0% | |||
Aberdeen Equity Long-Short Fund, Institutional Class | 9.0% | |||
Arbitrage Event Driven Fund, Institutional Class | 6.0% | |||
Nuveen Preferred Securities Fund, Institutional Class | 5.1% | |||
iShares TIPS Bond ETF | 4.3% | |||
iShares 7-10 Year Treasury Bond ETF | 4.3% | |||
Other | 14.2% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
5
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Diversified Alternatives Fund
Shares or Principal Amount | Value | |||||||
MUTUAL FUNDS (81.2%) | ||||||||
Alternative Investment (62.0%) | ||||||||
Aberdeen Equity Long-Short Fund, Institutional Class (a)(b) | 807,265 | $ | 7,426,837 | |||||
AQR Managed Futures Strategy Fund, Class I | 815,065 | 8,256,608 | ||||||
Arbitrage Event Driven Fund, Institutional Class | 554,682 | 4,975,501 | ||||||
BlackRock Global Long/Short Equity Fund, Institutional Class | 757,511 | 8,249,300 | ||||||
Boston Partners Long/Short Research Fund, Institutional Class | 719,917 | 10,669,163 | ||||||
Gotham Neutral Fund, Institutional Class | 1,152,212 | 11,591,251 | ||||||
51,168,660 | ||||||||
Fixed Income Funds (19.2%) | ||||||||
Aberdeen Asia Bond Fund, Institutional Class (a) | 332,573 | 3,335,708 | ||||||
Eaton Vance Floating-Rate Fund, Class I | 960,018 | 8,304,155 | ||||||
Nuveen Preferred Securities Fund, Institutional Class | 250,903 | 4,197,608 | ||||||
15,837,471 | ||||||||
Total Mutual Funds | 67,006,131 | |||||||
EXCHANGE TRADED FUNDS (12.7%) | ||||||||
Equity Fund (4.1%) | ||||||||
iShares Global Infrastructure ETF | 84,241 | 3,367,113 | ||||||
Fixed Income Funds (8.6%) | ||||||||
iShares 7-10 Year Treasury Bond ETF | 32,077 | 3,528,470 | ||||||
iShares TIPS Bond ETF | 30,875 | 3,546,920 | ||||||
7,075,390 | ||||||||
Total Exchange Traded Funds | 10,442,503 | |||||||
REPURCHASE AGREEMENT (6.1%) | ||||||||
Repuchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $5,044,013, collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $5,148,288 | $ | 5,044,000 | 5,044,000 | |||||
Total Repurchase Agreement | 5,044,000 | |||||||
Total Investments | 82,492,634 | |||||||
Other assets in excess of liabilities—0.0% | 5,877 | |||||||
Net Assets—100.0% | $ | 82,498,511 |
(a) | Investment in affiliate. Aberdeen Asset Management, Inc. is the investment adviser to the Fund and the investment adviser to the Aberdeen Equity Long-Short Fund and Aberdeen Asia Bond Fund. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ETF | Exchange-Traded Fund |
TIPS | Treasury Inflation Protected Securities |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
6
Aberdeen Diversified Income Fund (Unaudited)
The Aberdeen Diversified Income Fund (Institutional Class shares net of fees) returned 0.66% for the six-month period ended April 30, 2016, versus the 2.82% return of its primary benchmark, the Barclays U.S. Aggregate Bond Index, and the 1.20% return of its secondary benchmark, 50% MSCI All Country (AC) World Index/50% Barclays U.S. Aggregate Bond Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Flexible Portfolio Funds (consisting of 237 funds), as measured by Lipper, Inc., was -0.26%.
The focus for many global financial market investors at the outset of the reporting period was the timing of the Federal Reserve’s (Fed’s) next interest-rate hike, with most market observers predicting that the Fed would begin to raise rates following its meeting in mid-December 2015. Major news flow during the month of November diverted investors’ attention to geopolitical events—most notably the terrorist attacks in Paris and Turkey’s downing of a Russian fighter jet. While the true economic impact of these events was relatively minor, the political and social consequences were more significant. Regarding the financial markets, December was a volatile ride of up-and-down moves in the S&P 500 Index, including a sharp run-up prior to the Fed’s mid-month meeting, a steep decline immediately following it, and then a subsequent recovery—all of which occurred over approximately nine days of market activity. In this environment, U.S. small-cap stocks posted the largest declines in December, while international developed-market and emerging-market equities also lost ground as measured by the MSCI World ex USA and MSCI Emerging Markets indices, respectively. Most U.S. fixed-income segments were down modestly, though riskier assets such as leveraged loans and global high-yield bonds saw greater declines. Global fixed-income exposures were more mixed, as global developed-market government securities recorded positive returns on U.S. dollar weakness, while emerging-markets debt finished in negative territory in December.
Against this backdrop, global financial markets experienced an extraordinarily difficult start to 2016, but managed to regain most losses with a strong rebound in the second half of the first quarter of the year. Lackluster levels of economic growth helped push credit risk higher globally, thereby creating a negative feedback loop which weighed on investors’ risk appetite. Growth metrics in both the U.S. and elsewhere remained inconsistent and were overwhelmed at the beginning of the year by a steady array of negative headlines. Economic weakness in China and the continued disarray in the energy sector cast doubts on growth prospects across the world.
Risk assets reflected this weakness with heightened volatility and losses across a range of asset classes in January and early February. Central banks’ monetary policies remained front and center in the minds of investors across global markets, and speculation around the pace of further Fed monetary policy tightening (if any) projected for the end of 2016 was a key focus of market participants. This was partially offset by more dovish comments from other major central banks; however, market (and consumer) skepticism around the impact of such policies at least temporarily gained the upper hand, with diminishing returns becoming a factor. Although U.S. growth remained sluggish, the reporting period ended on a much stronger note as risk assets across the board firmed considerably through the month of March and into April. A significant rally across commodity markets, especially oil, was a key contributor to the upturn, along with improving U.S. economic data, more dovish–than-expected Fed comments, and more aggressive recent steps by the European Central Bank (ECB).
While markets have recovered rather quickly since January as market fundamentals have firmed, we think that latent volatility will remain a persistent brake on risk assets, as global growth momentum remains inconsistent and global monetary policy diverges more forcefully in the second half of 2016. We also see central bank policy remaining front and center in the minds of global market participants. We think that the pace of Fed tightening over the back end of 2016 will remain a key source of concern for investors, but the risk environment has been helped by Fed Chair Janet Yellen’s recently dovish stances alongside more aggressive recent actions by the ECB. Market skepticism about the impact of such policies may have receded somewhat, but concerns that policy action has reached the point of diminishing returns may remain. U.S. growth metrics have indeed firmed since earlier in 2016, and talk of recessionary-type numbers creeping in on the manufacturing and services sides seem to have faded for now, in our view. Nonetheless, there are still concerns about the durability of the recent firmness in the energy sector, given significant capacity worldwide and lackluster growth rates in general.
Despite significant episodes of market volatility, there were positive returns across certain asset classes during the reporting period. The Fund’s exposures to Vanguard High Dividend Yield Index Fund and iShares MSCI EAFE ETF, an exchange-traded fund, contributed positively to performance, along with iShares Cohen & Steers REIT ETF. The Fund’s holdings in Oppenheimer International Bond Fund and Aberdeen Asia Bond Fund also performed well during the period and bolstered performance. Conversely, the holding in Aberdeen Global High Income Fund was a significant detractor from Fund performance, while Wisdom Tree Europe Hedged Equity Fund ETF and Aberdeen International Equity Fund also had a negative impact over the period.
At the end of the reporting period on April 30, 2016, the Fund was invested consistent with our current views on the global macroeconomic outlook. We are cautiously inclined toward risk assets in the medium term, given inconsistent economic results in the U.S. and key segments of the global economy such as China, the Eurozone1 and Japan. We are also mindful of the looming divergence in global central bank policies as the Fed contemplates more interest-rate increases. The Fund remains highly diversified2 and we believe that it has the flexibility to tilt specific allocations based on changes in relative valuations or specific macroeconomic events. We feel that this allows us to respond effectively to changing market conditions and position the Fund’s asset class exposures accordingly.
1 | The Eurozone comprises 18 European Union member states that have adopted the euro as their common currency. |
2 | Diversification does not ensure a profit or protect against a loss in a declining market. |
2016 Semi-Annual Report
7
Aberdeen Diversified Income Fund (Unaudited) (concluded)
Portfolio Management
Aberdeen Investment Solutions Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
The Fund is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and underlying funds. The Fund will be affected by stock and bond market risks, among others.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities, and are subject to different accounting and regulatory standards, political and economic risks and, to the extent denominated in foreign currencies, currency exchange rate risk (unless otherwise hedged). These risks are enhanced in emerging market countries.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). Additionally, non-investment grade debt securities (high yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher rated securities.
The Fund may allocate its assets, to a limited extent, to alternative investment strategies, which may involve riskier types of securities or investments than those offered by investment in traditional asset classes.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
8
Aberdeen Diversified Income Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 0.51% | (3.01% | ) | 2.81% | 4.21% | ||||||||||||
w/SC2 | (5.30% | ) | (8.56% | ) | 1.59% | 3.60% | ||||||||||||
Class C | w/o SC | 0.17% | (3.62% | ) | 2.06% | 3.45% | ||||||||||||
w/SC3 | (0.81% | ) | (4.55% | ) | 2.06% | 3.45% | ||||||||||||
Class R4 | w/o SC | 0.37% | (3.43% | ) | 2.34% | 3.82% | ||||||||||||
Institutional Service Class4,5 | w/o SC | 0.66% | (2.65% | ) | 3.02% | 4.32% | ||||||||||||
Institutional Class4 | w/o SC | 0.66% | (2.66% | ) | 3.07% | 4.47% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. Returns also incorporate the performance of a predecessor fund (the “Predecessor Fund”) from inception to June 23, 2008. Prior to the change of investment objective and strategy of the fund effective September 24, 2012, the Fund and the Predecessor Fund had substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (September 24, 2012) are based on the previous performance of the Fund’s Class A shares. This performance is substantially similar to what the Institutional Service Class shares would have produced because both classes invest in the same portfolio of securities. Returns for the Institutional Service Class shares would only differ to the extent of the differences in expenses of the two classes. |
2016 Semi-Annual Report
9
Aberdeen Diversified Income Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Diversified Income Fund, Barclays U.S. Aggregate Bond Index, a blended benchmark of 50% Morgan Stanley Capital International All Country (MSCI AC) World Index/50% Barclays U.S. Aggregate Bond Index, and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage passthroughs), asset-backed securities, and commercial mortgage-backed securities.
The MSCI All Country World Index is a free float-adjusted market capitalization-weighted index that captures the large- and mid-cap representation across 23 developed markets and 23 emerging markets. The developed markets countries are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the U.K. and the U.S. The emerging markets countries are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Performance returns reflect fee waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Mutual Funds | 56.1 | % | ||
Exchange Traded Funds | 43.0 | % | ||
Repurchase Agreement | 1.2 | % | ||
Liabilities in excess of other assets | (0.3 | %) | ||
100.0 | % |
Top Industries | ||||
Fixed Income Funds | 59.1 | % | ||
Equity Funds | 33.7 | % | ||
Real Estate Investment Trust (REIT) Funds | 6.3 | % | ||
Other | 0.9 | % | ||
100.0 | % | |||
Top Holdings* | ||||
Vanguard High Dividend Yield ETF | 16.6% | |||
Nuveen Preferred Securities Fund, Institutional Class | 13.5% | |||
Eaton Vance Floating-Rate Fund, Class I | 12.7% | |||
Oppenheimer International Bond Fund, Class Y | 9.5% | |||
Aberdeen Global High Income Fund, Class I | 9.5% | |||
iShares Cohen & Steers REIT ETF | 6.3% | |||
Aberdeen Total Return Bond Fund, Class I | 5.9% | |||
Aberdeen Asia Bond Fund, Institutional Class | 5.0% | |||
WisdomTree Europe Hedged Equity Fund | 4.9% | |||
iShares Core S&P 500 ETF | 4.1% | |||
Other | 12.0% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Semi-Annual Report 2016
10
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Diversified Income Fund
Shares or Principal Amount | Value | |||||||
MUTUAL FUNDS (56.1%) | ||||||||
Fixed Income Funds (56.1%) | ||||||||
Aberdeen Asia Bond Fund, Institutional Class (a) | 102,864 | $ | 1,031,723 | |||||
Aberdeen Global High Income Fund, Class I (a) | 241,775 | 1,946,292 | ||||||
Aberdeen Total Return Bond Fund, Class I (a) | 89,513 | 1,201,267 | ||||||
Eaton Vance Floating-Rate Fund, Class I | 299,707 | 2,592,460 | ||||||
Nuveen Preferred Securities Fund, Institutional Class | 164,469 | 2,751,568 | ||||||
Oppenheimer International Bond Fund, Class Y | 336,076 | 1,949,243 | ||||||
11,472,553 | ||||||||
Total Mutual Funds |
| 11,472,553 | ||||||
EXCHANGE TRADED FUNDS (43.0%) | ||||||||
Equity Funds (33.7%) | ||||||||
iShares Core S&P 500 ETF | 4,089 | 847,936 | ||||||
iShares Global Infrastructure ETF | 21,063 | 841,888 | ||||||
iShares MSCI EAFE ETF | 13,885 | 811,301 | ||||||
Vanguard High Dividend Yield ETF | 48,742 | 3,389,519 | ||||||
WisdomTree Europe Hedged Equity Fund | 19,120 | 1,000,932 | ||||||
6,891,576 | ||||||||
Fixed Income Fund (3.0%) | ||||||||
iShares 7-10 Year Treasury Bond ETF | 5,668 | 623,480 | ||||||
Real Estate Investment Trust (REIT) Funds (6.3%) | ||||||||
iShares Cohen & Steers REIT ETF | 12,903 | 1,291,203 | ||||||
Total Exchange Traded Funds | �� | 8,806,259 | ||||||
REPURCHASE AGREEMENT (1.2%) | ||||||||
Repuchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $247,001, collateralized by U.S. Treasury Note, maturing 02/15/2025; total market value of $255,625 | $ | 247,000 | 247,000 | |||||
Total Repurchase Agreement | 247,000 | |||||||
Total Investments | 20,525,812 | |||||||
Liabilities in excess of other assets—(0.3)% | (57,012 | ) | ||||||
Net Assets—100.0% | $ | 20,468,800 |
(a) | Investment in affiliate. Aberdeen Asset Management, Inc. is the investment adviser to the Fund and the investment adviser to the Aberdeen Asia Bond Fund, Aberdeen Global High Income Fund and Aberdeen Total Return Bond Fund. |
(b) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ETF | Exchange-Traded Fund |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
11
Aberdeen Dynamic Allocation Fund (Unaudited)
The Aberdeen Dynamic Allocation Fund (Institutional Class shares net of fees) returned -1.07% for the six-month period ended April 30, 2016, versus the -0.65% return of its primary benchmark, the MSCI All Country (AC) World Index, and the 0.85% return of its secondary benchmark, 60% MSCI AC World Index/40% Barclays U.S. Aggregate Bond Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Flexible Portfolio Funds (consisting of 237 funds), as measured by Lipper, Inc., was -0.26%.
The focus for many global financial market investors at the outset of the reporting period was the timing of the Federal Reserve’s (Fed’s) next interest-rate hike, with most market observers predicting that the Fed would begin to raise rates following its meeting in mid-December 2015. Major news flow during the month of November diverted investors’ attention to geopolitical events—most notably the terrorist attacks in Paris and Turkey’s downing of a Russian fighter jet. While the true economic impact of these events was relatively minor, the political and social consequences were more significant. From a financial markets perspective, December was a volatile ride of up-and-down moves in the S&P 500 Index, including a sharp run-up prior to the Fed’s mid-month meeting, a steep decline immediately following it, and then a subsequent recovery—all of which occurred over approximately nine days of market activity. In this environment, U.S. small-cap stocks posted the largest declines in December, while international developed-market and emerging-market equities also lost ground as measured by the MSCI World ex USA and MSCI Emerging Markets indices, respectively. Most U.S. fixed-income segments were down modestly, though riskier assets such as leveraged loans and global high-yield bonds saw greater declines. Global fixed-income exposures were more mixed, as global developed-market government securities recorded positive returns on U.S. dollar weakness, while emerging-markets debt finished in negative territory in December.
Against this backdrop, global financial markets experienced an extraordinarily difficult start to 2016, but managed to regain most losses with a strong rebound in the second half of the first quarter of the year. Lackluster levels of economic growth helped push credit risk higher globally, thereby creating a negative feedback loop which weighed on investors’ risk appetite. Growth metrics in both the U.S. and elsewhere remained inconsistent and were overwhelmed at the beginning of the year by a steady array of negative headlines. Economic weakness in China and the continued disarray in the energy sector cast doubts on growth prospects across the world.
Risk assets reflected this weakness with heightened volatility and losses across a range of asset classes in January and early February. Central banks’ monetary policies remained front and center in the minds of investors across global markets, and speculation around the pace of further Fed monetary policy tightening (if any) projected for the end of 2016 was a key focus of market participants. This was partially offset by more dovish comments from other major central banks; however, market (and consumer) skepticism around the impact of such policies at least temporarily gained the upper hand, with diminishing returns becoming a factor. Although U.S. growth remained sluggish, the reporting period ended on a much stronger note as risk assets across the board firmed considerably through the month of March and into April. A significant rally across commodity markets, especially oil, was a key contributor to the upturn, along with improving U.S. economic data, more dovish–than-expected Fed comments, and more aggressive recent steps by the European Central Bank (ECB).
While markets have recovered rather quickly since January as market fundamentals have firmed, we think that latent volatility will remain a persistent brake on risk assets, as global growth momentum remains inconsistent and global monetary policy diverges more forcefully in the second half of 2016. We also see central bank policy remaining front and center in the minds of global market participants. We think that the pace of Fed tightening over the back end of 2016 will remain a key source of concern for investors, but the risk environment has been helped by Fed Chair Janet Yellen’s recently dovish stances alongside more aggressive recent actions by the ECB. Market skepticism about the impact of such policies may have receded somewhat, but concerns that policy action has reached the point of diminishing returns may remain. U.S. growth metrics have indeed firmed since earlier in 2016, and talk of recessionary-type numbers creeping in on the manufacturing and services sides seem to have faded for now, in our view. Nonetheless, there are still concerns about the durability of the recent firmness in the energy sector, given significant capacity worldwide and lackluster growth rates in general.
Despite significant episodes of market volatility, there were positive returns across certain asset classes over the reporting period. The Fund’s exposures to Aberdeen Total Return Bond Fund and iShares TIPS Bond ETF, an exchange-traded fund, contributed positively to performance, along with iShares Cohen & Steers REIT ETF. The Fund’s holdings in Aberdeen U.S. Small Cap Equity Fund and iShares MSCI EAFE ETF also performed well during the period and bolstered performance. A significant detractor from Fund performance was the holding in Deutsche x-Trackers MSCI Japan Hedged Equity Fund, a currency-hedged equity strategy that benefits from yen-weakening that faced significant headwinds from the yen strengthening versus the U.S. dollar during the reporting period. The positions in Wisdom Tree Europe Hedged Equity Fund ETF and Aberdeen International Equity Fund also detracted from Fund performance.
At the end of the period on April 30, 2016, the Fund was invested consistent with our current views on the global macroeconomic outlook. We are cautiously inclined toward risk assets in the medium term, given inconsistent economic results in the U.S. and key segments of the global economy such as China, the Eurozone1 and Japan. We are also mindful of the looming divergence in central bank policies as the Fed contemplates more interest-rate increases. The Fund remains highly diversified2 and we feel that it has the flexibility to tilt specific allocations based on changes in relative valuations or
1 | The Eurozone comprises 18 European Union member states that have adopted the euro as their common currency. |
2 | Diversification does not ensure a profit or protect against a loss in a declining market. |
Semi-Annual Report 2016
12
Aberdeen Dynamic Allocation Fund (Unaudited) (concluded)
specific macroeconomic events. We believe that this allows us to respond effectively to changing market conditions and position the Fund’s asset class exposures accordingly.
Portfolio Management
Aberdeen Investment Solutions Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
The Fund is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and underlying funds. The Fund will be affected by stock and bond market risks, among others.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities, and are subject to different accounting and regulatory standards, political and economic risks and, to the extent denominated in foreign currencies, currency exchange rate risk (unless otherwise hedged). These risks are enhanced in emerging market countries.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), call (some bonds allow the issuer to call a bond for redemption before it matures), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
The Fund allocates its assets, to a limited extent, to alternative investment strategies, which may involve riskier types of securities or investments than those offered by investment in traditional asset classes.
Please read the prospectus for more detailed information regarding these and other risks.
2016 Semi-Annual Report
13
Aberdeen Dynamic Allocation Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | (1.20% | ) | (5.31% | ) | 3.05% | 3.87% | |||||||||||
w/SC2 | (6.85% | ) | (10.77% | ) | 1.84% | 3.26% | ||||||||||||
Class C | w/o SC | (1.53% | ) | (5.99% | ) | 2.31% | 3.13% | |||||||||||
w/SC3 | (2.51% | ) | (6.91% | ) | 2.31% | 3.13% | ||||||||||||
Class R4 | w/o SC | (1.48% | ) | (5.73% | ) | 2.67% | 3.52% | |||||||||||
Institutional Service Class4,5 | w/o SC | (1.06% | ) | (5.13% | ) | 3.25% | 3.98% | |||||||||||
Institutional Class4 | w/o SC | (1.07% | ) | (5.06% | ) | 3.34% | 4.01% | (6) |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized |
1 | The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. Returns also incorporate the performance of a predecessor fund (the “Predecessor Fund”) from inception to June 23, 2008. Prior to the change of investment objective and strategy of the fund effective September 24, 2012, the Fund and the Predecessor Fund had substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 5.75% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class (September 24, 2012) are based on the performance of the Fund’s Class A shares. This performance is substantially similar to what the Institutional Service Class shares would have produced because both classes invest in the same portfolio of securities. Returns for the Institutional Service Class shares would only differ to the extent of the differences in expenses of the two classes. |
Semi-Annual Report 2016
14
Aberdeen Dynamic Allocation Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Dynamic Allocation Fund, the Morgan Stanley Capital International All Country (MSCI AC) World Index, a blended benchmark of 60% MSCI AC World Index/40% Barclays U.S. Aggregate Bond Index, and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The MSCI All Country World Index is a free float-adjusted market capitalization-weighted index that captures the large- and mid-cap representation across 23 developed markets and 23 emerging markets. The developed markets countries are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the U.K. and the U.S. The emerging markets countries are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage passthroughs), asset-backed securities, and commercial mortgage-backed securities.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Performance returns reflect fee waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Exchange Traded Funds | 48.5% | |||
Mutual Funds | 47.5% | |||
Repurchase Agreement | 4.0% | |||
Liabilities in excess of other assets | –% | |||
100.0% |
Top Industries | ||||
Fixed Income Funds | 44.3% | |||
Equity Funds | 39.9% | |||
Real Estate Investment Trust (REIT) Funds | 6.0% | |||
Alternative Investment | 5.8% | |||
Other | 4.0% | |||
100.0% |
Amounts | listed as “–” are 0% or round to 0% |
Top Holdings* | ||||
Nuveen Preferred Securities Fund, Institutional Class | 8.3% | |||
Aberdeen U.S. Small Cap Equity Fund, Institutional Class | 7.3% | |||
Aberdeen Total Return Bond Fund, Class I | 7.3% | |||
iShares Russell Midcap ETF | 7.1% | |||
iShares 7-10 Year Treasury Bond ETF | 6.9% | |||
Eaton Vance Floating-Rate Fund, Class I | 6.3% | |||
iShares Core S&P 500 ETF | 6.2% | |||
WisdomTree Europe Hedged Equity Fund | 6.0% | |||
iShares Cohen & Steers REIT ETF | 6.0% | |||
AQR Managed Futures Strategy Fund, Class I | 5.8% | |||
Other | 32.8% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
15
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Dynamic Allocation Fund
Shares or Principal Amount | Value | |||||||
MUTUAL FUNDS (47.5%) | ||||||||
Alternative Investment (5.8%) | ||||||||
AQR Managed Futures Strategy Fund, Class I | 121,303 | $ | 1,228,794 | |||||
Equity Funds (9.4%) | ||||||||
Aberdeen Emerging Markets Fund, Institutional Class (a) | 34,906 | 437,022 | ||||||
Aberdeen U.S. Small Cap Equity Fund, Institutional Class (a)(b) | 52,556 | 1,549,359 | ||||||
1,986,381 | ||||||||
Fixed Income Funds (32.3%) | ||||||||
Aberdeen Asia Bond Fund, Institutional Class (a) | 64,509 | 647,025 | ||||||
Aberdeen Global High Income Fund, Class I (a) | 108,524 | 873,615 | ||||||
Aberdeen Total Return Bond Fund, Class I (a) | 115,092 | 1,544,540 | ||||||
Eaton Vance Floating-Rate Fund, Class I | 153,913 | 1,331,350 | ||||||
Nuveen Preferred Securities Fund, Institutional Class | 104,488 | 1,748,084 | ||||||
Oppenheimer International Bond Fund, Class Y | 115,160 | 667,926 | ||||||
6,812,540 | ||||||||
Total Mutual Funds | 10,027,715 | |||||||
EXCHANGE TRADED FUNDS (48.5%) | ||||||||
Equity Funds (30.5%) | ||||||||
Deutsche X-trackers MSCI Japan Hedged Equity ETF | 12,386 | 393,132 | ||||||
iShares Core S&P 500 ETF | 6,270 | 1,300,210 | ||||||
iShares Global Infrastructure ETF | 11,345 | 453,460 | ||||||
iShares MSCI EAFE ETF | 18,596 | 1,086,564 | ||||||
iShares Russell Midcap ETF | 9,058 | 1,490,765 | ||||||
Vanguard High Dividend Yield ETF | 6,215 | 432,191 | ||||||
WisdomTree Europe Hedged Equity Fund | 24,211 | 1,267,446 | ||||||
6,423,768 | ||||||||
Fixed Income Funds (12.0%) | ||||||||
iShares 7-10 Year Treasury Bond ETF | 13,243 | 1,456,730 | ||||||
iShares TIPS Bond ETF | 9,376 | 1,077,115 | ||||||
2,533,845 | ||||||||
Real Estate Investment Trust (REIT) Funds (6.0%) | ||||||||
iShares Cohen & Steers REIT ETF | 12,610 | 1,261,883 | ||||||
Total Exchange Traded Funds | 10,219,496 | |||||||
REPURCHASE AGREEMENT (4.0%) | ||||||||
Repuchase Agreement, Fixed Income Clearing | $ | 837,000 | 837,000 | |||||
Total Repurchase Agreement | 837,000 | |||||||
Total Investments | 21,084,211 | |||||||
Liabilities in excess of other assets—0.0% | (2,845 | ) | ||||||
Net Assets—100.0% | $ | 21,081,366 |
(a) | Investment in affiliate. Aberdeen Asset Management, Inc. is the investment adviser to the Fund and the investment adviser to the Aberdeen Emerging Markets Fund, Aberdeen U.S. Small Cap Equity Fund, Aberdeen Asia Bond Fund, Aberdeen Global High Income Fund and Aberdeen Total Return Bond Fund. |
(b) | Non-income producing security. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ETF | Exchange-Traded Fund |
REIT | Real Estate Investment Trust |
TIPS | Treasury Inflation Protected Securities |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
16
Statements of Assets and Liabilities (Unaudited)
April 30, 2016
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value | $ | 66,686,089 | $ | 16,099,530 | $ | 15,195,650 | ||||||
Investments in affiliates, at value | 10,762,545 | 4,179,282 | 5,051,561 | |||||||||
Repurchase agreements, at value | 5,044,000 | 247,000 | 837,000 | |||||||||
|
|
|
|
|
| |||||||
Total investments | 82,492,634 | 20,525,812 | 21,084,211 | |||||||||
|
|
|
|
|
| |||||||
Cash | 651 | 749 | 599 | |||||||||
Interest and dividends receivable | 57,719 | 35,234 | 18,787 | |||||||||
Receivable for capital shares issued | 56,681 | 85 | 164 | |||||||||
Receivable from Adviser | 22,243 | 10,561 | 11,672 | |||||||||
Prepaid expenses | 48,651 | 36,867 | 37,739 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 82,678,579 | 20,609,308 | 21,153,172 | |||||||||
|
|
|
|
|
| |||||||
Liabilities: | ||||||||||||
Payable for investments purchased | 53,218 | 37,284 | 19,851 | |||||||||
Payable for capital shares redeemed | 20,765 | 61,647 | 10,515 | |||||||||
Accrued expenses and other payables: | ||||||||||||
Audit fees | 15,742 | 15,742 | 15,742 | |||||||||
Distribution fees | 15,934 | 12,172 | 10,673 | |||||||||
Sub-transfer agent and administrative services fees | 20,933 | 3,804 | 4,216 | |||||||||
Printing fees | 16,156 | 2,634 | 3,296 | |||||||||
Investment advisory fees | 10,521 | 2,535 | 2,624 | |||||||||
Transfer agent fees | 9,036 | 1,181 | 1,535 | |||||||||
Administration fees | 5,611 | 1,352 | 1,399 | |||||||||
Fund accounting fees | 4,497 | 689 | 708 | |||||||||
Legal fees | 3,358 | 542 | 536 | |||||||||
Custodian fees | 1,163 | 517 | 319 | |||||||||
Other | 3,134 | 409 | 392 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 180,068 | 140,508 | 71,806 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 82,498,511 | $ | 20,468,800 | $ | 21,081,366 | ||||||
|
|
|
|
|
| |||||||
Cost: | ||||||||||||
Investments | $ | 68,172,520 | $ | 16,223,702 | $ | 15,156,637 | ||||||
Investments in affiliates | 11,607,899 | 4,483,786 | 5,036,082 | |||||||||
Repurchase agreements | 5,044,000 | 247,000 | 837,000 | |||||||||
Represented by: | ||||||||||||
Capital | $ | 108,904,775 | $ | 21,442,981 | $ | 22,248,945 | ||||||
Accumulated net investment income/(loss) | (183,252 | ) | 29,337 | (20,845 | ) | |||||||
Accumulated net realized loss from investments | (23,891,227 | ) | (574,842 | ) | (1,201,226 | ) | ||||||
Net unrealized appreciation/(depreciation) on investments | (2,331,785 | ) | (428,676 | ) | 54,492 | |||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 82,498,511 | $ | 20,468,800 | $ | 21,081,366 | ||||||
|
|
|
|
|
| |||||||
Net Assets: | ||||||||||||
Class A Shares | $ | 22,296,226 | $ | 5,804,298 | $ | 8,155,403 | ||||||
Class C Shares | 12,709,681 | 13,075,774 | 10,596,154 | |||||||||
Class R Shares | 1,752,346 | 429,189 | 477,496 | |||||||||
Institutional Service Class Shares | 18,828 | 31,801 | 9,959 | |||||||||
Institutional Class Shares | 45,721,430 | 1,127,738 | 1,842,354 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 82,498,511 | $ | 20,468,800 | $ | 21,081,366 | ||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
17
Statements of Assets and Liabilities (Unaudited) (concluded)
April 30, 2016
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||
Shares Outstanding (unlimited number of shares authorized): | ||||||||||||
Class A Shares | 1,785,112 | 504,314 | 649,947 | |||||||||
Class C Shares | 1,059,351 | 1,162,591 | 862,454 | |||||||||
Class R Shares | 141,528 | 37,696 | 38,293 | |||||||||
Institutional Service Class Shares | 1,492 | 2,766 | 797 | |||||||||
Institutional Class Shares | 3,625,153 | 98,073 | 147,394 | |||||||||
|
|
|
|
|
| |||||||
Total | 6,612,636 | 1,805,440 | 1,698,885 | |||||||||
|
|
|
|
|
| |||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||||||||||
Class A Shares | $ | 12.49 | $ | 11.51 | $ | 12.55 | ||||||
Class C Shares (a) | $ | 12.00 | $ | 11.25 | $ | 12.29 | ||||||
Class R Shares | $ | 12.38 | $ | 11.39 | $ | 12.47 | ||||||
Institutional Service Class Shares | $ | 12.62 | $ | 11.50 | $ | 12.50 | ||||||
Institutional Class Shares | $ | 12.61 | $ | 11.50 | $ | 12.50 | ||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||
Class A Shares | $ | 13.25 | $ | 12.21 | $ | 13.32 | ||||||
Maximum Sales Charge: | ||||||||||||
Class A Shares | 5.75 | % | 5.75 | % | 5.75 | % |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
18
Statements of Operations (Unaudited)
For the Six Month Period Ended April 30, 2016
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividend income | $ | 1,137,080 | $ | 305,639 | $ | 223,315 | ||||||
Dividend income from affiliates | 41,720 | 70,592 | 46,775 | |||||||||
Interest income | 648 | 49 | 130 | |||||||||
|
|
|
|
|
| |||||||
1,179,448 | 376,280 | 270,220 | ||||||||||
|
|
|
|
|
| |||||||
EXPENSES: | ||||||||||||
Investment advisory fees | 86,510 | 15,669 | 16,224 | |||||||||
Administration fees | 46,139 | 8,357 | 8,654 | |||||||||
Distribution fees Class A | 31,143 | 7,390 | 10,324 | |||||||||
Distribution fees Class C | 69,828 | 66,958 | 54,704 | |||||||||
Distribution fees Class R | 3,997 | 1,037 | 1,223 | |||||||||
Sub-transfer agent and administrative service fees Class A | 14,122 | 1,537 | 2,173 | |||||||||
Sub-transfer agent and administrative service fees Institutional Class | 8,423 | 129 | 477 | |||||||||
Sub-transfer agent and administrative service fees Class C | 2,607 | 1,987 | 1,787 | |||||||||
Sub-transfer agent and administrative service fees Class R | 999 | 278 | 470 | |||||||||
Sub-transfer agent and administrative service fees Institutional Service Class | 3 | – | – | |||||||||
Fund accounting fees | 6,936 | 1,055 | 1,086 | |||||||||
Transfer agent fees | 69,069 | 14,784 | 18,345 | |||||||||
Trustee fees | 4,249 | 719 | 737 | |||||||||
Legal fees | 4,342 | 742 | 758 | |||||||||
Printing fees | 17,554 | 6,509 | 7,151 | |||||||||
Custodian fees | 4,890 | 1,912 | 1,858 | |||||||||
Registration and filing fees | 29,688 | 26,596 | 26,495 | |||||||||
Audit fees | 12,183 | 12,183 | 12,183 | |||||||||
Other | 8,939 | 2,629 | 2,633 | |||||||||
|
|
|
|
|
| |||||||
Total expenses before reimbursed/waived expenses | 421,621 | 170,471 | 167,282 | |||||||||
Interest expense (Note 10) | 535 | – | – | |||||||||
|
|
|
|
|
| |||||||
Total operating expenses before reimbursed/waived expenses | 422,156 | 170,471 | 167,282 | |||||||||
Expenses reimbursed/waived by investment advisor | (157,345 | ) | (67,156 | ) | (71,345 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 264,811 | 103,315 | 95,937 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 914,637 | 272,965 | 174,283 | |||||||||
|
|
|
|
|
| |||||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||||||||||
Realized gain distributions from underlying affiliated funds | 1,989,648 | – | 10,216 | |||||||||
Realized gain distributions from underlying non-affiliated funds | 1,499,564 | 84,055 | 175,013 | |||||||||
Realized (loss) from investment transactions from affiliated funds | (2,296,727 | ) | (261,777 | ) | (490,824 | ) | ||||||
Realized (loss) from investment transactions from non-affiliated funds | (4,599,429 | ) | (390,498 | ) | (188,770 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized (loss) from investments | (3,406,944 | ) | (568,220 | ) | (494,365 | ) | ||||||
|
|
|
|
|
| |||||||
Net change in unrealized appreciation/(depreciation) on investment transactions | (502,661 | ) | 300,168 | (50,408 | ) | |||||||
|
|
|
|
|
| |||||||
Net realized/unrealized (loss) from investments | (3,909,605 | ) | (268,052 | ) | (544,773 | ) | ||||||
|
|
|
|
|
| |||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (2,994,968 | ) | $ | 4,913 | $ | (370,490 | ) | ||||
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
19
Statements of Changes in Net Assets
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 914,637 | $ | 2,113,150 | $ | 272,965 | $ | 642,973 | $ | 174,283 | $ | 516,748 | ||||||||||||
Net realized gain/(loss) from investments | (3,406,944 | ) | (926,020 | ) | (568,220 | ) | 211,411 | (494,365 | ) | 1,350,301 | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments | (502,661 | ) | (4,579,696 | ) | 300,168 | (1,513,578 | ) | (50,408 | ) | (2,131,227 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | (2,994,968 | ) | (3,392,566 | ) | 4,913 | (659,194 | ) | (370,490 | ) | (264,178 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (242,453 | ) | (551,092 | ) | (95,873 | ) | (207,023 | ) | (100,658 | ) | (233,946 | ) | ||||||||||||
Class C | (104,483 | ) | (345,029 | ) | (172,928 | ) | (372,688 | ) | (101,636 | ) | (252,553 | ) | ||||||||||||
Class R | (14,282 | ) | (9,146 | ) | (5,988 | ) | (11,199 | ) | (4,685 | ) | (10,233 | ) | ||||||||||||
Institutional Service Class | (189 | ) | (309 | ) | (538 | ) | (944 | ) | (132 | ) | (420 | ) | ||||||||||||
Institutional Class | (894,704 | ) | (1,946,934 | ) | (20,076 | ) | (59,239 | ) | (30,017 | ) | (48,674 | ) | ||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | – | – | (49,208 | ) | (351,054 | ) | (4,466 | ) | – | |||||||||||||||
Class C | – | – | (112,812 | ) | (711,126 | ) | (6,061 | ) | – | |||||||||||||||
Class R | – | – | (3,342 | ) | (19,693 | ) | (247 | ) | – | |||||||||||||||
Institutional Service Class | – | – | (249 | ) | (550 | ) | (6 | ) | – | |||||||||||||||
Institutional Class | – | – | (9,596 | ) | (102,209 | ) | (1,217 | ) | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (1,256,111 | ) | (2,852,510 | ) | (470,610 | ) | (1,835,725 | ) | (249,125 | ) | (545,826 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | (62,879,344 | ) | 52,268,213 | (1,519,483 | ) | (257,827 | ) | (848,711 | ) | (1,057,167 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (67,130,423 | ) | 46,023,137 | (1,985,180 | ) | (2,752,746 | ) | (1,468,326 | ) | (1,867,171 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 149,628,934 | 103,605,797 | 22,453,980 | 25,206,726 | 22,549,692 | 24,416,863 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of six months | $ | 82,498,511 | $ | 149,628,934 | $ | 20,468,800 | $ | 22,453,980 | $ | 21,081,366 | $ | 22,549,692 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of period | $ | (183,252 | ) | $ | 158,222 | $ | 29,337 | $ | 51,775 | $ | (20,845 | ) | $ | 42,000 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
20
Statements of Changes in Net Assets (continued)
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 7,872,957 | $ | 26,509,629 | $ | 242,414 | $ | 807,811 | $ | 450,406 | $ | 819,802 | ||||||||||||
Dividends reinvested | 218,531 | 477,065 | 107,553 | 405,007 | 79,390 | 170,961 | ||||||||||||||||||
Cost of shares redeemed | (12,315,976 | ) | (19,956,837 | ) | (705,904 | ) | (1,755,141 | ) | (818,394 | ) | (1,527,901 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (4,224,488 | ) | 7,029,857 | (355,937 | ) | (542,323 | ) | (288,598 | ) | (537,138 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 460,241 | 5,654,893 | 244,600 | 3,584,256 | 197,353 | 792,192 | ||||||||||||||||||
Dividends reinvested | 61,782 | 172,265 | 191,991 | 652,281 | 66,131 | 150,724 | ||||||||||||||||||
Cost of shares redeemed | (4,146,545 | ) | (3,846,485 | ) | (1,458,519 | ) | (3,204,459 | ) | (1,042,825 | ) | (1,763,800 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | (3,624,522 | ) | 1,980,673 | (1,021,928 | ) | 1,032,078 | (779,341 | ) | (820,884 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 584,032 | 1,453,268 | 40,105 | 305,861 | 75,014 | 84,055 | ||||||||||||||||||
Dividends reinvested | 10,505 | 3,837 | 23 | 15,600 | 4,147 | 8,513 | ||||||||||||||||||
Cost of shares redeemed | (141,712 | ) | (428,413 | ) | (23,882 | ) | (277,395 | ) | (93,480 | ) | (30,042 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | 452,825 | 1,028,692 | 16,246 | 44,066 | (14,319 | ) | 62,526 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | – | 19,369 | – | 32,059 | – | 10,493 | ||||||||||||||||||
Dividends reinvested | 189 | 309 | 787 | 1,494 | 137 | 420 | ||||||||||||||||||
Cost of shares redeemed | – | (11,501 | ) | – | (11,126 | ) | – | (11,644 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | 189 | 8,177 | 787 | 22,427 | 137 | (731 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 7,421,689 | 82,724,806 | 68,628 | 304,986 | 842,600 | 831,443 | ||||||||||||||||||
Dividends reinvested | 794,738 | 1,756,493 | 24,141 | 138,379 | 17,149 | 30,997 | ||||||||||||||||||
Cost of shares redeemed | (63,699,775 | ) | (42,260,485 | ) | (251,420 | ) | (1,257,440 | ) | (626,339 | ) | (623,380 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | (55,483,348 | ) | 42,220,814 | (158,651 | ) | (814,075 | ) | 233,410 | 239,060 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | (62,879,344 | ) | $ | 52,268,213 | $ | (1,519,483 | ) | $ | (257,827 | ) | $ | (848,711 | ) | $ | (1,057,167 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
21
Statements of Changes in Net Assets (concluded)
Aberdeen Diversified Alternatives Fund | Aberdeen Diversified Income Fund | Aberdeen Dynamic Allocation Fund | ||||||||||||||||||||||
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 628,603 | 2,001,090 | 21,347 | 66,395 | 36,079 | 61,066 | ||||||||||||||||||
Reinvested | 17,344 | 36,261 | 9,513 | 33,481 | 6,301 | 12,913 | ||||||||||||||||||
Redeemed | (986,141 | ) | (1,534,103 | ) | (62,656 | ) | (144,205 | ) | (66,884 | ) | (114,313 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (340,194 | ) | 503,248 | (31,796 | ) | (44,329 | ) | (24,504 | ) | (40,334 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | 38,079 | 442,785 | 22,215 | 298,388 | 16,187 | 59,807 | ||||||||||||||||||
Reinvested | 5,093 | 13,532 | 17,367 | 55,138 | 5,346 | 11,605 | ||||||||||||||||||
Redeemed | (341,565 | ) | (305,861 | ) | (131,922 | ) | (268,053 | ) | (86,287 | ) | (135,259 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | (298,393 | ) | 150,456 | (92,340 | ) | 85,473 | (64,754 | ) | (63,847 | ) | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Issued | 46,837 | 111,742 | 3,602 | 26,479 | 6,187 | 6,488 | ||||||||||||||||||
Reinvested | 840 | 295 | 2 | 1,292 | 331 | 647 | ||||||||||||||||||
Redeemed | (11,610 | ) | (32,884 | ) | (2,155 | ) | (23,164 | ) | (7,434 | ) | (2,223 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | 36,067 | 79,153 | 1,449 | 4,607 | (916 | ) | 4,912 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | – | 1,472 | – | 2,639 | – | 772 | ||||||||||||||||||
Reinvested | 15 | 23 | 69 | 125 | 11 | 32 | ||||||||||||||||||
Redeemed | – | (888 | ) | – | (958 | ) | – | (915 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | 15 | 607 | 69 | 1,806 | 11 | (111 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 588,766 | 6,240,242 | 5,987 | 24,311 | 66,556 | 62,755 | ||||||||||||||||||
Reinvested | 62,529 | 133,210 | 2,138 | 11,443 | 1,368 | 2,348 | ||||||||||||||||||
Redeemed | (5,092,179 | ) | (3,226,701 | ) | (22,185 | ) | (103,936 | ) | (51,230 | ) | (48,140 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | (4,440,884 | ) | 3,146,751 | (14,060 | ) | (68,182 | ) | 16,694 | 16,963 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | (5,043,389 | ) | 3,880,215 | (136,678 | ) | (20,625 | ) | (73,469 | ) | (82,417 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
22
This page intentionally left blank.
Financial Highlights
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Diversified Alternatives Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net (a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Total Distri- butions | Net Asset Value, End of Period | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.82 | $ | 0.08 | $ | (0.30 | ) | $ | (0.22 | ) | $ | (0.11 | ) | $ | (0.11 | ) | $ | 12.49 | ||||||||||
Year Ended October 31, 2015 | 13.32 | 0.17 | (0.39 | ) | (0.22 | ) | (0.28 | ) | (0.28 | ) | 12.82 | |||||||||||||||||
Year Ended October 31, 2014 | 12.63 | 0.05 | 0.79 | 0.84 | (0.15 | ) | (0.15 | ) | 13.32 | |||||||||||||||||||
Year Ended October 31, 2013 | 11.64 | 0.12 | 1.01 | 1.13 | (0.14 | ) | (0.14 | ) | 12.63 | |||||||||||||||||||
Year Ended October 31, 2012 | 10.93 | 0.18 | 0.70 | 0.88 | (0.17 | ) | (0.17 | ) | 11.64 | |||||||||||||||||||
Year Ended October 31, 2011 | 11.31 | 0.21 | (0.38 | ) | (0.17 | ) | (0.21 | ) | (0.21 | ) | 10.93 | |||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.33 | 0.04 | (0.28 | ) | (0.24 | ) | (0.09 | ) | (0.09 | ) | 12.00 | |||||||||||||||||
Year Ended October 31, 2015 | 12.89 | 0.10 | (0.39 | ) | (0.29 | ) | (0.27 | ) | (0.27 | ) | 12.33 | |||||||||||||||||
Year Ended October 31, 2014 | 12.22 | (0.05 | ) | 0.77 | 0.72 | (0.05 | ) | (0.05 | ) | 12.89 | ||||||||||||||||||
Year Ended October 31, 2013 | 11.33 | 0.03 | 0.97 | 1.00 | (0.11 | ) | (0.11 | ) | 12.22 | |||||||||||||||||||
Year Ended October 31, 2012 | 10.67 | 0.10 | 0.68 | 0.78 | (0.12 | ) | (0.12 | ) | 11.33 | |||||||||||||||||||
Year Ended October 31, 2011 | 11.03 | 0.14 | (0.37 | ) | (0.23 | ) | (0.13 | ) | (0.13 | ) | 10.67 | |||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.72 | 0.06 | (0.29 | ) | (0.23 | ) | (0.11 | ) | (0.11 | ) | 12.38 | |||||||||||||||||
Year Ended October 31, 2015 | 13.25 | 0.11 | (0.36 | ) | (0.25 | ) | (0.28 | ) | (0.28 | ) | 12.72 | |||||||||||||||||
Year Ended October 31, 2014 | 12.56 | 0.02 | 0.78 | 0.80 | (0.11 | ) | (0.11 | ) | 13.25 | |||||||||||||||||||
Year Ended October 31, 2013 | 11.61 | 0.06 | 1.01 | 1.07 | (0.12 | ) | (0.12 | ) | 12.56 | |||||||||||||||||||
Year Ended October 31, 2012 | 10.90 | 0.14 | 0.71 | 0.85 | (0.14 | ) | (0.14 | ) | 11.61 | |||||||||||||||||||
Year Ended October 31, 2011 | 11.26 | 0.21 | (0.42 | ) | (0.21 | ) | (0.15 | ) | (0.15 | ) | 10.90 | |||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.94 | 0.10 | (0.29 | ) | (0.19 | ) | (0.13 | ) | (0.13 | ) | 12.62 | |||||||||||||||||
Year Ended October 31, 2015 | 13.44 | 0.20 | (0.38 | ) | (0.18 | ) | (0.32 | ) | (0.32 | ) | 12.94 | |||||||||||||||||
Year Ended October 31, 2014 | 12.75 | 0.09 | 0.80 | 0.89 | (0.20 | ) | (0.20 | ) | 13.44 | |||||||||||||||||||
Year Ended October 31, 2013 | 11.73 | 0.15 | 1.02 | 1.17 | (0.15 | ) | (0.15 | ) | 12.75 | |||||||||||||||||||
Period from September 24, 2012 through October 31, 2012(i) | 11.81 | 0.01 | (0.09 | ) | (0.08 | ) | – | – | 11.73 | |||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.93 | 0.12 | (0.31 | ) | (0.19 | ) | (0.13 | ) | (0.13 | ) | 12.61 | |||||||||||||||||
Year Ended October 31, 2015 | 13.43 | 0.21 | (0.39 | ) | (0.18 | ) | (0.32 | ) | (0.32 | ) | 12.93 | |||||||||||||||||
Year Ended October 31, 2014 | 12.75 | 0.08 | 0.80 | 0.88 | (0.20 | ) | (0.20 | ) | 13.43 | |||||||||||||||||||
Year Ended October 31, 2013 | 11.73 | 0.15 | 1.02 | 1.17 | (0.15 | ) | (0.15 | ) | 12.75 | |||||||||||||||||||
Year Ended October 31, 2012 | 11.00 | 0.22 | 0.71 | 0.93 | (0.20 | ) | (0.20 | ) | 11.73 | |||||||||||||||||||
Year Ended October 31, 2011 | 11.38 | 0.25 | (0.39 | ) | (0.14 | ) | (0.24 | ) | (0.24 | ) | 11.00 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
24
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Diversified Alternatives Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(1.69 | %) | $ | 22,296 | 0.62 | %(g) | 1.33 | % | 0.87 | %(g) | 23.23 | % | |||||||||||
(1.68 | %) | 27,238 | 0.57 | % | 1.31 | % | 0.80 | % | 78.72 | % | ||||||||||||
6.70 | % | 21,608 | 0.52 | % | 0.36 | % | 0.88 | % | 54.26 | % | ||||||||||||
9.76 | % | 6,135 | 0.52 | % | 1.02 | % | 1.20 | % | 47.20 | % | ||||||||||||
8.14 | % | 6,418 | 0.52 | % | 1.65 | % | 1.14 | % | 51.62 | % | ||||||||||||
(1.52 | %) | 7,624 | 0.51 | % | 1.85 | % | 1.03 | % | 26.76 | % | ||||||||||||
(1.95 | %) | 12,710 | 1.25 | %(g) | 0.66 | % | 1.54 | %(g) | 23.23 | % | ||||||||||||
(2.35 | %) | 16,740 | 1.25 | % | 0.79 | % | 1.48 | % | 78.72 | % | ||||||||||||
5.91 | % | 15,565 | 1.25 | % | (0.36 | %) | 1.61 | % | 54.26 | % | ||||||||||||
8.91 | % | 12,467 | 1.25 | % | 0.26 | % | 1.93 | % | 47.20 | % | ||||||||||||
7.39 | % | 13,368 | 1.25 | % | 0.93 | % | 1.87 | % | 51.62 | % | ||||||||||||
(2.14 | %) | 16,828 | 1.25 | % | 1.27 | % | 1.77 | % | 26.76 | % | ||||||||||||
(1.82 | %) | 1,752 | 0.88 | %(g) | 0.94 | % | 1.13 | %(g) | 23.23 | % | ||||||||||||
(1.98 | %) | 1,341 | 0.87 | % | 0.81 | % | 1.10 | % | 78.72 | % | ||||||||||||
6.37 | %(h) | 348 | 0.83 | % | 0.14 | % | 1.19 | % | 54.26 | % | ||||||||||||
9.32 | %(h) | 371 | 0.88 | % | 0.51 | % | 1.56 | % | 47.20 | % | ||||||||||||
7.85 | %(h) | 277 | 0.91 | % | 1.22 | % | 1.53 | % | 51.62 | % | ||||||||||||
(1.77 | %) | 254 | 0.79 | % | 1.80 | % | 1.32 | % | 26.76 | % | ||||||||||||
(1.49 | %) | 19 | 0.29 | %(g) | 1.60 | % | 0.54 | %(g) | 23.23 | % | ||||||||||||
(1.38 | %) | 19 | 0.25 | % | 1.54 | % | 0.48 | % | 78.72 | % | ||||||||||||
7.02 | % | 12 | 0.25 | % | 0.65 | % | 0.61 | % | 54.26 | % | ||||||||||||
10.03 | % | 11 | 0.25 | % | 1.22 | % | 0.93 | % | 47.20 | % | ||||||||||||
(0.68 | %) | 10 | 0.25 | % | 0.56 | % | 0.87 | % | 51.62 | % | ||||||||||||
(1.49 | %) | 45,721 | 0.25 | %(g) | 1.86 | % | 0.53 | %(g) | 23.23 | % | ||||||||||||
(1.38 | %) | 104,291 | 0.25 | % | 1.59 | % | 0.48 | % | 78.72 | % | ||||||||||||
6.94 | % | 66,073 | 0.25 | % | 0.58 | % | 0.61 | % | 54.26 | % | ||||||||||||
10.03 | % | 3,261 | 0.25 | % | 1.19 | % | 0.93 | % | 47.20 | % | ||||||||||||
8.54 | %(h) | 2,970 | 0.25 | % | 1.95 | % | 0.87 | % | 51.62 | % | ||||||||||||
(1.17 | %) | 3,032 | 0.25 | % | 2.15 | % | 0.77 | % | 26.76 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(i) | For the period from September 24, 2012 (commencement of operations) through October 31, 2012. |
2016 Semi-Annual Report
25
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Diversified Income Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net (a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Net Realized Gains | Total Distri- butions | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 11.73 | $ | 0.17 | $ | (0.12 | ) | $ | 0.05 | $ | (0.18 | ) | $ | (0.09 | ) | $ | (0.27 | ) | $ | 11.51 | ||||||||||||
Year Ended October 31, 2015 | 12.99 | 0.38 | (0.65 | ) | (0.27 | ) | (0.37 | ) | (0.62 | ) | (0.99 | ) | 11.73 | |||||||||||||||||||
Year Ended October 31, 2014 | 12.58 | 0.39 | 0.48 | 0.87 | (0.46 | ) | – | (0.46 | ) | 12.99 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.03 | 0.35 | 0.56 | 0.91 | (0.36 | ) | – | (0.36 | ) | 12.58 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.39 | 0.25 | 0.62 | 0.87 | (0.23 | ) | – | (0.23 | ) | 12.03 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.42 | 0.23 | (0.03 | ) | 0.20 | (0.23 | ) | – | (0.23 | ) | 11.39 | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.47 | 0.13 | (0.12 | ) | 0.01 | (0.14 | ) | (0.09 | ) | (0.23 | ) | 11.25 | ||||||||||||||||||||
Year Ended October 31, 2015 | 12.75 | 0.28 | (0.64 | ) | (0.36 | ) | (0.30 | ) | (0.62 | ) | (0.92 | ) | 11.47 | |||||||||||||||||||
Year Ended October 31, 2014 | 12.35 | 0.29 | 0.48 | 0.77 | (0.37 | ) | – | (0.37 | ) | 12.75 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.81 | 0.25 | 0.56 | 0.81 | (0.27 | ) | – | (0.27 | ) | 12.35 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.18 | 0.17 | 0.61 | 0.78 | (0.15 | ) | – | (0.15 | ) | 11.81 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.22 | 0.15 | (0.05 | ) | 0.10 | (0.14 | ) | – | (0.14 | ) | 11.18 | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.61 | 0.15 | (0.12 | ) | 0.03 | (0.16 | ) | (0.09 | ) | (0.25 | ) | 11.39 | ||||||||||||||||||||
Year Ended October 31, 2015 | 12.90 | 0.32 | (0.66 | ) | (0.34 | ) | (0.33 | ) | (0.62 | ) | (0.95 | ) | 11.61 | |||||||||||||||||||
Year Ended October 31, 2014 | 12.49 | 0.33 | 0.49 | 0.82 | (0.41 | ) | – | (0.41 | ) | 12.90 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.94 | 0.29 | 0.57 | 0.86 | (0.31 | ) | – | (0.31 | ) | 12.49 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.31 | 0.19 | 0.62 | 0.81 | (0.18 | ) | – | (0.18 | ) | 11.94 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.34 | 0.20 | (0.06 | ) | 0.14 | (0.17 | ) | – | (0.17 | ) | 11.31 | |||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.72 | 0.19 | (0.12 | ) | 0.07 | (0.20 | ) | (0.09 | ) | (0.29 | ) | 11.50 | ||||||||||||||||||||
Year Ended October 31, 2015 | 12.97 | 0.38 | (0.61 | ) | (0.23 | ) | (0.40 | ) | (0.62 | ) | (1.02 | ) | 11.72 | |||||||||||||||||||
Year Ended October 31, 2014 | 12.57 | 0.42 | 0.48 | 0.90 | (0.50 | ) | – | (0.50 | ) | 12.97 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.01 | 0.39 | 0.57 | 0.96 | (0.40 | ) | – | (0.40 | ) | 12.57 | ||||||||||||||||||||||
Period from September 24, 2012 through October 31, 2012(i) | 12.06 | 0.03 | (0.08 | ) | (0.05 | ) | – | – | – | 12.01 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 11.72 | 0.19 | (0.12 | ) | 0.07 | (0.20 | ) | (0.09 | ) | (0.29 | ) | 11.50 | ||||||||||||||||||||
Year Ended October 31, 2015 | 12.97 | 0.40 | (0.63 | ) | (0.23 | ) | (0.40 | ) | (0.62 | ) | (1.02 | ) | 11.72 | |||||||||||||||||||
Year Ended October 31, 2014 | 12.56 | 0.42 | 0.49 | 0.91 | (0.50 | ) | – | (0.50 | ) | 12.97 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 12.01 | 0.38 | 0.57 | 0.95 | (0.40 | ) | – | (0.40 | ) | 12.56 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 11.38 | 0.28 | 0.61 | 0.89 | (0.26 | ) | – | (0.26 | ) | 12.01 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 11.41 | 0.26 | (0.03 | ) | 0.23 | (0.26 | ) | – | (0.26 | ) | 11.38 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
26
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Diversified Income Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
0.51 | % | $ | 5,804 | 0.55 | % | 3.05 | % | 1.17 | % | 15.72 | % | |||||||||||
(2.21 | %) | 6,291 | 0.53 | %(g) | 3.07 | % | 1.16 | %(g) | 50.74 | % | ||||||||||||
7.10 | % | 7,542 | 0.51 | % | 3.06 | % | 1.08 | % | 29.19 | % | ||||||||||||
7.69 | % | 8,357 | 0.53 | % | 2.82 | % | 1.00 | % | 37.01 | % | ||||||||||||
7.73 | %(h) | 10,538 | 0.53 | % | 2.15 | % | 1.00 | % | 65.34 | % | ||||||||||||
1.71 | % | 9,220 | 0.53 | % | 1.99 | % | 0.92 | % | 26.55 | % | ||||||||||||
0.17 | % | 13,076 | 1.25 | % | 2.35 | % | 1.90 | % | 15.72 | % | ||||||||||||
(2.96 | %) | 14,396 | 1.25 | %(g) | 2.33 | % | 1.88 | %(g) | 50.74 | % | ||||||||||||
6.34 | %(h) | 14,906 | 1.25 | % | 2.31 | % | 1.82 | % | 29.19 | % | ||||||||||||
6.96 | %(h) | 17,824 | 1.25 | % | 2.09 | % | 1.72 | % | 37.01 | % | ||||||||||||
7.01 | %(h) | 22,488 | 1.25 | % | 1.45 | % | 1.72 | % | 65.34 | % | ||||||||||||
1.01 | % | 20,388 | 1.25 | % | 1.27 | % | 1.65 | % | 26.55 | % | ||||||||||||
0.37 | % | 429 | 0.88 | % | 2.70 | % | 1.50 | % | 15.72 | % | ||||||||||||
(2.75 | %) | 421 | 0.98 | %(g) | 2.64 | % | 1.61 | %(g) | 50.74 | % | ||||||||||||
6.66 | % | 408 | 0.97 | % | 2.58 | % | 1.54 | % | 29.19 | % | ||||||||||||
7.29 | % | 387 | 0.96 | % | 2.39 | % | 1.43 | % | 37.01 | % | ||||||||||||
7.20 | % | 384 | 0.99 | % | 1.63 | % | 1.46 | % | 65.34 | % | ||||||||||||
1.26 | % | 410 | 0.87 | % | 1.77 | % | 1.27 | % | 26.55 | % | ||||||||||||
0.66 | % | 32 | 0.25 | % | 3.35 | % | 0.87 | % | 15.72 | % | ||||||||||||
(1.91 | %) | 32 | 0.25 | %(g) | 3.16 | % | 0.88 | %(g) | 50.74 | % | ||||||||||||
7.32 | %(h) | 12 | 0.25 | % | 3.31 | % | 0.82 | % | 29.19 | % | ||||||||||||
8.10 | %(h) | 11 | 0.25 | % | 3.10 | % | 0.72 | % | 37.01 | % | ||||||||||||
(0.41 | %)(h) | 10 | 0.25 | % | 2.52 | % | 0.72 | % | 65.34 | % | ||||||||||||
0.66 | % | 1,128 | 0.25 | % | 3.35 | % | 0.90 | % | 15.72 | % | ||||||||||||
(1.91 | %) | 1,314 | 0.25 | %(g) | 3.30 | % | 0.88 | %(g) | 50.74 | % | ||||||||||||
7.40 | % | 2,339 | 0.25 | % | 3.32 | % | 0.82 | % | 29.19 | % | ||||||||||||
8.01 | % | 1,953 | 0.25 | % | 3.10 | % | 0.72 | % | 37.01 | % | ||||||||||||
7.95 | % | 1,756 | 0.25 | % | 2.39 | % | 0.72 | % | 65.34 | % | ||||||||||||
2.00 | % | 1,027 | 0.25 | % | 2.25 | % | 0.64 | % | 26.55 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(i) | For the period from September 24, 2012 (commencement of operations) through October 31, 2012. |
2016 Semi-Annual Report
27
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Dynamic Allocation Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net (a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Net Realized Gains | Total Distri- butions | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 12.86 | $ | 0.12 | $ | (0.27 | ) | $ | (0.15 | ) | $ | (0.15 | ) | $ | (0.01 | ) | $ | (0.16 | ) | $ | 12.55 | |||||||||||
Year Ended October 31, 2015 | 13.30 | 0.33 | (0.43 | ) | (0.10 | ) | (0.34 | ) | – | (0.34 | ) | 12.86 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.51 | 0.20 | 0.80 | 1.00 | (0.21 | ) | – | (0.21 | ) | 13.30 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.52 | 0.17 | 1.01 | 1.18 | (0.19 | ) | – | (0.19 | ) | 12.51 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.87 | 0.21 | 0.64 | 0.85 | (0.20 | ) | – | (0.20 | ) | 11.52 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.88 | 0.20 | (0.03 | ) | 0.17 | (0.18 | ) | – | (0.18 | ) | 10.87 | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.60 | 0.08 | (0.27 | ) | (0.19 | ) | (0.11 | ) | (0.01 | ) | (0.12 | ) | 12.29 | |||||||||||||||||||
Year Ended October 31, 2015 | 13.06 | 0.23 | (0.43 | ) | (0.20 | ) | (0.26 | ) | – | (0.26 | ) | 12.60 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.28 | 0.11 | 0.78 | 0.89 | (0.11 | ) | – | (0.11 | ) | 13.06 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.32 | 0.08 | 1.00 | 1.08 | (0.12 | ) | – | (0.12 | ) | 12.28 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.69 | 0.13 | 0.62 | 0.75 | (0.12 | ) | – | (0.12 | ) | 11.32 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.72 | 0.12 | (0.03 | ) | 0.09 | (0.12 | ) | – | (0.12 | ) | 10.69 | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.79 | 0.09 | (0.28 | ) | (0.19 | ) | (0.12 | ) | (0.01 | ) | (0.13 | ) | 12.47 | |||||||||||||||||||
Year Ended October 31, 2015 | 13.23 | 0.27 | (0.42 | ) | (0.15 | ) | (0.29 | ) | – | (0.29 | ) | 12.79 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.45 | 0.15 | 0.78 | 0.93 | (0.15 | ) | – | (0.15 | ) | 13.23 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.47 | 0.12 | 1.02 | 1.14 | (0.16 | ) | – | (0.16 | ) | 12.45 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.83 | 0.15 | 0.66 | 0.81 | (0.17 | ) | – | (0.17 | ) | 11.47 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.83 | 0.14 | 0.01 | 0.15 | (0.15 | ) | – | (0.15 | ) | 10.83 | ||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.81 | 0.14 | (0.27 | ) | (0.13 | ) | (0.17 | ) | (0.01 | ) | (0.18 | ) | 12.50 | |||||||||||||||||||
Year Ended October 31, 2015 | 13.24 | 0.34 | (0.40 | ) | (0.06 | ) | (0.37 | ) | – | (0.37 | ) | 12.81 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.46 | 0.24 | 0.78 | 1.02 | (0.24 | ) | – | (0.24 | ) | 13.24 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.47 | 0.20 | 1.02 | 1.22 | (0.23 | ) | – | (0.23 | ) | 12.46 | ||||||||||||||||||||||
Period from September 24, 2012 through October 31, 2012(h) | 11.58 | 0.01 | (0.12 | ) | (0.11 | ) | – | – | – | 11.47 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 12.81 | 0.14 | (0.27 | ) | (0.13 | ) | (0.17 | ) | (0.01 | ) | (0.18 | ) | 12.50 | |||||||||||||||||||
Year Ended October 31, 2015 | 13.24 | 0.36 | (0.42 | ) | (0.06 | ) | (0.37 | ) | – | (0.37 | ) | 12.81 | ||||||||||||||||||||
Year Ended October 31, 2014 | 12.46 | 0.24 | 0.78 | 1.02 | (0.24 | ) | – | (0.24 | ) | 13.24 | ||||||||||||||||||||||
Year Ended October 31, 2013 | 11.47 | 0.19 | 1.03 | 1.22 | (0.23 | ) | – | (0.23 | ) | 12.46 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.83 | 0.19 | 0.68 | 0.87 | (0.23 | ) | – | (0.23 | ) | 11.47 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.92 | 0.20 | (0.08 | ) | 0.12 | (0.21 | ) | – | (0.21 | ) | 10.83 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
28
Financial Highlights (concluded)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Dynamic Allocation Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
(1.20 | %) | $ | 8,155 | 0.55 | % | 1.94 | % | 1.19 | % | 31.39 | % | |||||||||||
(0.82 | %) | 8,677 | 0.53 | % | 2.50 | % | 1.19 | % | 40.49 | % | ||||||||||||
8.03 | % | 9,506 | 0.52 | % | 1.58 | % | 1.16 | % | 52.34 | % | ||||||||||||
10.35 | % | 9,937 | 0.52 | % | 1.44 | % | 1.07 | % | 67.49 | % | ||||||||||||
7.93 | %(g) | 11,682 | 0.53 | % | 1.90 | % | 1.08 | % | 60.45 | % | ||||||||||||
1.67 | % | 10,755 | 0.54 | % | 1.83 | % | 1.00 | % | 20.14 | % | ||||||||||||
(1.53 | %) | 10,596 | 1.25 | % | 1.24 | % | 1.92 | % | 31.39 | % | ||||||||||||
(1.55 | %) | 11,687 | 1.25 | % | 1.78 | % | 1.91 | % | 40.49 | % | ||||||||||||
7.28 | % | 12,939 | 1.25 | % | 0.85 | % | 1.89 | % | 52.34 | % | ||||||||||||
9.58 | % | 15,123 | 1.25 | % | 0.71 | % | 1.80 | % | 67.49 | % | ||||||||||||
7.10 | % | 16,890 | 1.25 | % | 1.18 | % | 1.80 | % | 60.45 | % | ||||||||||||
0.95 | % | 15,009 | 1.25 | % | 1.12 | % | 1.72 | % | 20.14 | % | ||||||||||||
(1.48 | %) | 477 | 0.94 | % | 1.49 | % | 1.58 | % | 31.39 | % | ||||||||||||
(1.16 | %) | 501 | 0.96 | % | 2.04 | % | 1.62 | % | 40.49 | % | ||||||||||||
7.52 | % | 454 | 0.95 | % | 1.15 | % | 1.59 | % | 52.34 | % | ||||||||||||
9.99 | % | 406 | 0.92 | % | 1.02 | % | 1.47 | % | 67.49 | % | ||||||||||||
7.55 | % | 288 | 0.89 | % | 1.38 | % | 1.44 | % | 60.45 | % | ||||||||||||
1.42 | % | 28 | 0.79 | % | 1.23 | % | 1.26 | % | 20.14 | % | ||||||||||||
(1.06 | %) | 10 | 0.25 | % | 2.23 | % | 0.89 | % | 31.39 | % | ||||||||||||
(0.53 | %)(g) | 10 | 0.25 | % | 2.56 | % | 0.91 | % | 40.49 | % | ||||||||||||
8.36 | % | 12 | 0.25 | % | 1.85 | % | 0.89 | % | 52.34 | % | ||||||||||||
10.72 | % | 11 | 0.25 | % | 1.68 | % | 0.80 | % | 67.49 | % | ||||||||||||
(0.95 | %) | 10 | 0.25 | % | 1.13 | % | 0.80 | % | 60.45 | % | ||||||||||||
(1.07 | %) | 1,842 | 0.25 | % | 2.30 | % | 0.94 | % | 31.39 | % | ||||||||||||
(0.53 | %) | 1,675 | 0.25 | % | 2.73 | % | 0.91 | % | 40.49 | % | ||||||||||||
8.28 | % | 1,506 | 0.25 | % | 1.86 | % | 0.89 | % | 52.34 | % | ||||||||||||
10.72 | % | 1,223 | 0.25 | % | 1.62 | % | 0.80 | % | 67.49 | % | ||||||||||||
8.18 | % | 596 | 0.25 | % | 1.65 | % | 0.80 | % | 60.45 | % | ||||||||||||
1.40 | % | 8 | 0.25 | % | 1.83 | % | 0.72 | % | 20.14 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(h) | For the period from September 24, 2012 (commencement of operations) through October 31, 2012. |
2016 Semi-Annual Report
29
April 30, 2016 (Unaudited)
1. Organization
Aberdeen Funds (the “Trust”) was organized as a statutory trust under the laws of the state of Delaware by a Certificate of Trust filed on September 27, 2007 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of April 30, 2016, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2016, the Trust operated twenty-five (25) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the three (3) funds listed below (each a “Fund”; collectively, the “Funds”):
– | Aberdeen Diversified Alternatives Fund (“Diversified Alternatives Fund”) |
– | Aberdeen Diversified Income Fund (“Diversified Income Fund”) |
– | Aberdeen Dynamic Allocation Fund (“Dynamic Allocation Fund”) |
Each of the Funds is operated as a “fund of funds,” which means that each of these Funds pursues its investment objective primarily by allocating its investments among other affiliated and unaffiliated mutual funds and exchange traded funds (“Underlying Funds”).
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Funds are maintained in U.S. Dollars.
a. | Security Valuation |
The Funds value their securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Funds’ Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.
Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Open-end mutual funds are valued at the respective net asset value as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined to be a Level 1 investment.
In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Funds’ Pricing Committee (the “Pricing Committee”), taking into account the relevant factors and surrounding circumstances using Valuation and Liquidity Procedures approved by the Funds’ Board of Trustees (the “Board”). A security that has been fair valued by the Pricing Committee may be classified as Level 2 or 3 depending on the nature of the inputs.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1 measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3 measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
Semi-Annual Report 2016
30
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
The three-level hierarchy of inputs is summarized below:
• | Level 1- quoted prices in active markets for identical investments; |
• | Level 2- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or |
• | Level 3- significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments). |
The following is a summary of the inputs used as of April 30, 2016 in valuing the Funds’ investments at fair value. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Please refer to the Statements of Investments for a detailed breakout of the security types:
Investments, at Value | Level 1-Quoted Prices ($) | Level 2-Other Significant Observable Inputs ($) | Level 3-Significant Unobservable Inputs ($) | Total | ||||||||||||
Diversified Alternatives Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Mutual Funds | 67,006,131 | �� | – | – | 67,006,131 | |||||||||||
Exchange Traded Funds | 10,442,503 | – | – | 10,442,503 | ||||||||||||
Repurchase Agreement | – | 5,044,000 | – | 5,044,000 | ||||||||||||
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77,448,634 | 5,044,000 | – | 82,492,634 | |||||||||||||
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Diversified Income Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Mutual Funds | 11,472,553 | – | – | 11,472,553 | ||||||||||||
Exchange Traded Funds | 8,806,259 | – | – | 8,806,259 | ||||||||||||
Repurchase Agreement | – | 247,000 | – | 247,000 | ||||||||||||
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20,278,812 | 247,000 | – | 20,525,812 | |||||||||||||
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Dynamic Allocation Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Mutual Funds | 10,027,715 | – | – | 10,027,715 | ||||||||||||
Exchange Traded Funds | 10,219,496 | – | – | 10,219,496 | ||||||||||||
Repurchase Agreement | – | 837,000 | – | 837,000 | ||||||||||||
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20,247,211 | 837,000 | – | 21,084,211 | |||||||||||||
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Amounts listed as “–” are $0 or round to $0.
For movements between the Levels within the fair value hierarchy, the Funds have adopted a policy of recognizing transfers at the end of each period. During the six month period ended April 30, 2016, there were no transfers between Levels. For the six month period ended April 30, 2016, there were no significant changes to the fair valuation methodologies.
b. | Repurchase Agreements |
The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is each Fund’s policy that its custodian/counterparty segregate the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates. To the extent that any repurchase transaction exceeds one business day, the collateral is valued on a daily basis to determine its adequacy. Under the Master Repurchase Agreement, if the counterparty defaults and the value of the collateral declines, or if bankruptcy proceedings are commenced with respect to the counterparty of the security, realization of the collateral by the Funds may be delayed or limited. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on individual repurchase agreements, see the Statements of Investments.
c. | Restricted Securities |
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of
2016 Semi-Annual Report
31
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the “1933 Act”). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Funds, but resale of such securities in the U.S. is permitted only in limited circumstances.
d. | Security Transactions, Investment Income and Expenses |
Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate actions.
Interest income and expenses are recorded on an accrual basis. Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the relevant Funds based on net assets of each. For each of the Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses to a class is based on the total net asset value of that class’s shares in proportion to the total net assets of the relevant Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
e. | Distributions |
Distributions from net investment income, if any, are declared and paid quarterly for all Funds. The Funds 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 shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign currencies and loss deferrals.
f. | Federal Income Taxes |
Each Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is required.
Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31 are subject to such review.
3. Agreements and Transactions with Affiliates
a. | Investment Adviser |
Under the Investment Advisory Agreement with the Trust, Aberdeen Asset Management Inc. (“Aberdeen” or the “Adviser”) manages the Funds in accordance with the policies and procedures established by the Board. Under the terms of the Investment Advisory Agreement, each Fund pays Aberdeen an annual management fee of 0.15% based on the Funds’ average daily net assets, paid monthly.
The Trust and Aberdeen have entered into a written contract (the “Expense Limitation Agreement”) limiting operating expenses to 0.25% for all classes of the Funds. This contractual limitation may not be terminated before February 28, 2017 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees, transfer agent out-of-pocket expenses for Class A shares, Class R shares, and Institutional Service Class shares and extraordinary expenses.
Aberdeen may request and receive reimbursement from a Fund of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement at a later date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Funds was made. However, no reimbursement will be made for fees waived unless:
(i) the total annual expense ratio of the class making such reimbursement is less than the limit set forth above; and
(ii) the payment of such reimbursement is approved by the Board on a quarterly basis (the “Reimbursement Requirements”).
If the Board approves any changes in the waiver terms or limitations, reimbursements are only permitted to the extent that the terms of the Expense Limitation Agreement in effect at the time of the waiver are met at the time that reimbursement is approved. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by Aberdeen is not permitted.
Semi-Annual Report 2016
32
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
As of April 30, 2016, to the extent the Reimbursement Requirements are met, the cumulative potential reimbursements for each Fund, based on expenses reimbursed by Aberdeen would be:
Fund | Amount 2013 | Amount Fiscal Year 2014 | Amount Fiscal Year 2015 | Amount Six Months Ended April 30, 2016 (Expires 4/30/19) | Total* | |||||||||||||||
Diversified Alternatives Fund | $ | 73,687 | $ | 218,423 | $ | 341,817 | $ | 157,345 | $ | 791,272 | ||||||||||
Diversified Income Fund | 77,069 | 151,342 | 153,561 | 67,156 | 449,128 | |||||||||||||||
Dynamic Allocation Fund | 75,109 | 162,128 | 160,791 | 71,345 | 469,373 |
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
In accordance with the Funds’ Expense Limitation Agreement and criteria, as described above, the Adviser did not recapture any expenses for which it previously reimbursed the Funds. Accordingly, at April 30, 2016, the Funds did not have liabilities payable to the Adviser for recapture of previously reimbursed expenses.
b. | Fund Administration |
Under the terms of the Fund Administration Agreement, Aberdeen provides various administrative and accounting services, including daily valuation of the Funds’ shares, preparation of financial statements, tax returns, regulatory reports, and presentation of quarterly reports to the Board. For services provided pursuant to the Fund Administration Agreement, the Trust pays Aberdeen an annual fee of 0.08% based on the Trust’s average daily net assets. The fee is then allocated proportionately among all funds within the Trust (including the Funds) in relation to the average daily net assets of each fund. This asset-based fee is subject to an annual minimum fee based on the number of funds served. Pursuant to a sub-administration agreement with Aberdeen, State Street Bank and Trust Company provides sub-administration services with respect to the Funds.
c. | Distributor and Shareholder Servicing |
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor” or “AFD”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares. The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate AFD, as the Funds’ Distributor, for expenses associated with the distribution of certain classes of shares of the Funds of the Trust. Although actual distribution expenses may be more or less, under the Plan, the Funds of the Trust pay the Distributor an annual fee of the following amounts:
Fund | Class A Shares | Class C Shares (a) | Class R Shares | |||||||||
Diversified Alternatives Fund | 0.25% | 1.00% | 0.50% | |||||||||
Diversified Income Fund | 0.25% | 1.00% | 0.50% | |||||||||
Dynamic Allocation Fund | 0.25% | 1.00% | 0.50% |
(a) | 0.25% of which is service fees |
The Adviser or an affiliate of the Adviser may pay additional amounts from its own resources to dealers or other financial intermediaries, for aid in distribution or for aid in providing administrative services to shareholders.
Pursuant to the current Underwriting Agreement, the Distributor will also receive the proceeds of contingent deferred sales charges (“CDSCs”) of 1% imposed on certain redemptions of Class C (and up to 1% for certain Class A) shares.
In addition, the Distributor will re-allow to dealers 5.00% of sales charges on Class A shares of the Funds, which have a maximum front-end sales charge of 5.75% and the Distributor or the Adviser may compensate broker dealers or financial intermediaries from its own resources at the rate 1.00% on sales of Class C shares of the Funds, which have a maximum CDSC of 1.00%, (on the CDSC assessed on sales within one year of purchase). For the six month period ended April 30, 2016, AFD retained commissions of $6,779 from front-end sales charges of Class A shares and $6,391 from CDSC fees from Class C (and certain Class A) shares of the Funds.
d. | Administrative Services |
Under the terms of the current Administrative Services Plan, a series of the Trust is permitted to enter into Servicing Agreements with servicing organizations, such as any bank, trust company, thrift institution, broker-dealer, insurance company, or other financial institution, which agree to provide certain administrative support services in connection with the Class A, Class R and Institutional Service Class shares
2016 Semi-Annual Report
33
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
of the series of the Trust (as applicable). These fees are based on an annual rate of up to 0.25% (or 0.15% under an amendment to the Administrative Services Plan that is in effect until at least February 28, 2017) of the average daily net assets of Class A, Class R and Institutional Service Class shares of each of the Funds (as applicable). The amount of expenses incurred under the terms of the Administrative Services Plan during the six month period ended April 30, 2016 was as follows:
Fund | Amount | |||
Diversified Alternatives Fund | $ | 8,890 | ||
Diversified Income Fund | 833 | |||
Dynamic Allocation Fund | 1,292 |
The Funds may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. These fees may be in addition to the Rule 12b-1 fees and Administrative Services fees. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.
4. Investment Transactions
Purchases and sales of Underlying Funds for the six month period ended April 30, 2016, were as follows:
Fund | Purchases | Sales | ||||||
Diversified Alternatives Fund | $ | 25,839,598 | $ | 87,445,994 | ||||
Diversified Income Fund | 3,254,396 | 4,821,116 | ||||||
Dynamic Allocation Fund | 6,516,437 | 7,176,453 |
A summary of the Funds’ investments in securities of affiliated issuers for the six month period ended April 30, 2016 is set forth below:
Diversified Alternatives Fund
Fund | 10/31/2015 Share Balance | Purchase Cost | Sales Cost | Realized Gain/(Loss) | Distributions Received(1) | 04/30/2016 Share Balance | 04/30/2016 Market Value | |||||||||||||||||||||
Aberdeen Equity Long-Short Fund | 1,719,759 | $ | 1,989,648 | 12,461,026 | $ | (2,135,890 | ) | $ | 1,989,648 | $ | 807,265 | $ | 7,426,837 | |||||||||||||||
Aberdeen Asia Bond Fund | 524,752 | 1,051,055 | 3,086,750 | (160,837 | ) | 41,720 | 332,573 | 3,335,708 | ||||||||||||||||||||
Total | 3,040,703 | 15,547,776 | (2,296,727 | ) | 2,031,368 | 10,762,545 |
(1) | Distributions received includes both Income and Gains Distributions, if any. |
Diversified Income Fund
Fund | 10/31/2015 Share Balance | Purchase Cost | Sales Cost | Realized Gain/(Loss) | Distributions Received(1) | 04/30/2016 Share Balance | 04/30/2016 Market Value | |||||||||||||||||||||
Aberdeen International Equity Fund | 66,230 | $ | 50,238 | 1,026,346 | $ | (239,451 | ) | $ | 3,267 | $ | – | $ | – | |||||||||||||||
Aberdeen Asia Bond Fund | 114,621 | 11,122 | 133,132 | (8,578 | ) | 11,122 | 102,864 | 1,031,723 | ||||||||||||||||||||
Aberdeen Global High Income Fund | 240,442 | 45,256 | 40,657 | (5,814 | ) | 45,256 | 241,775 | 1,946,292 | ||||||||||||||||||||
Aberdeen Total Return Bond Fund | 104,678 | 57,894 | 264,290 | (7,934 | ) | 10,947 | 89,513 | 1,201,267 | ||||||||||||||||||||
Total | 164,510 | 1,464,425 | (261,777 | ) | 70,592 | 4,179,282 |
(1) | Distributions received includes both Income and Gains Distributions, if any. |
Semi-Annual Report 2016
34
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Dynamic Allocation Fund
Fund | 10/31/2015 Share Balance | Purchase Cost | Sales Cost | Realized Gain/(Loss) | Distributions Received(1) | 04/30/2016 Share Balance | 04/30/2016 Market Value | |||||||||||||||||||||
Aberdeen International Equity Fund | 90,794 | $ | 88,896 | 1,471,180 | $ | (374,643 | ) | $ | 4,479 | $ | – | $ | – | |||||||||||||||
Aberdeen Emerging Markets Fund | 58,043 | 306,547 | 738,053 | (157,061 | ) | 11,504 | 34,906 | 437,022 | ||||||||||||||||||||
Aberdeen U.S. Small Cap Equity Fund | 73,323 | – | 479,960 | 69,302 | – | 52,556 | 1,549,359 | |||||||||||||||||||||
Aberdeen Asia Bond Fund | 98,613 | 6,910 | 352,827 | (15,215 | ) | 6,910 | 64,509 | 647,025 | ||||||||||||||||||||
Aberdeen Global High Income Fund | 108,342 | 35,659 | 43,950 | (9,877 | ) | 20,691 | 108,524 | 873,615 | ||||||||||||||||||||
Aberdeen Total Return Bond Fund | 121,997 | 13,407 | 106,793 | (3,330 | ) | 13,407 | 115,092 | 1,544,540 | ||||||||||||||||||||
Total | 451,419 | 3,192,763 | (490,824 | ) | 56,991 | 5,051,561 |
(1) | Distributions received includes both Income and Gains Distributions, if any. |
5. Financial Highlights
The Financial Highlights of the Institutional Service Class, which was audited by other auditors whose report was unqualified, for each of the Diversified Alternatives Fund, Diversified Income Fund and Dynamic Allocation Fund prior to fiscal year end October 31, 2009 were as follows:
Diversified Alternatives Fund
Investment Activities | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Net Realized and Unrealized Gain/(Loss) on Investments | Total from Investment Activities | Net Investment Income | Net Realized | Tax Return of Capital | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets at End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income/ (Loss) to Average Net Assets (c) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2008 | $ | 15.43 | 0.62 | (5.80 | ) | (5.18 | ) | (0.86 | ) | (0.79 | ) | (0.10) | (1.75 | ) | $ | 8.50 | (37.39% | ) | $ | 3 | 0.24% | 0.70% | 0.68% | 46.75% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2007(f) | $ | 13.24 | 0.14 | 2.66 | 2.80 | (0.47 | ) | (0.14 | ) | – | (0.61 | ) | $ | 15.43 | 21.90% | $ | 2 | 0.24% | 1.01% | 0.46% | 24.54% |
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(f) | Net investment income/(loss) is based on average shares outstanding during the period. |
Amounts designated as “–” are $0 or round to $0.
Diversified Income Fund
Investment Activities | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Net Realized and Unrealized Gain/(Loss) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gain/ (Loss) | Tax Return of Capital | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets at End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income/ (Loss) to Average Net Assets (c) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2008 | $ | 13.02 | 0.34 | (3.16 | ) | (2.82 | ) | (0.68 | ) | (0.74 | ) | (0.01) | (1.43 | ) | $ | 8.77 | (24.08% | ) | $ | 1 | 0.26% | 2.56% | 0.56% | 53.11% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2007(f) | $ | 11.84 | 0.27 | 1.49 | 1.76 | (0.40 | ) | (0.18 | ) | – | (0.58 | ) | $ | 13.02 | 15.35% | $ | 1 | 0.25% | 2.22% | 0.60% | 70.87% |
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(f) | Net investment income/(loss) is based on average shares outstanding during the period. |
Amounts designated as “–” are $0 or round to $0.
2016 Semi-Annual Report
35
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Dynamic Allocation Fund
Investment Activities | Distributions | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/ (Loss) | Net Realized and Unrealized Gain/(Loss) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gain/ (Loss) | Tax Return of Capital | Total Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets at End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income/ (Loss) to Average Net Assets (c) | Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2008(f) | $ | 13.86 | 0.29 | (4.15 | ) | (3.86 | ) | (0.84 | ) | (0.95 | ) | (0.05) | (1.84 | ) | $ | 8.16 | (31.66% | ) | $ | 1 | 0.25% | 1.71% | 0.71% | 44.74% | ||||||||||||||||||||||||||||||||||||
Year Ended October 31, 2007(f) | $ | 12.23 | 0.19 | 2.06 | 2.25 | (0.39 | ) | (0.23 | ) | – | (0.62 | ) | $ | 13.86 | 19.08% | $ | 2 | 0.24% | 1.52% | 0.59% | 63.01% |
(a) | Excludes sales charge. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(f) | Net investment income/(loss) is based on average shares outstanding during the period. |
Amounts designated as “–” are $0 or round to $0.
6. Portfolio Investment Risks
Principal | Risks of the Funds |
a. | Affiliated Funds Risk |
The Funds’ Adviser serves as the adviser of certain Underlying Funds. It is possible that a conflict of interest among the Funds and the Underlying Funds could affect how the Funds’ Adviser fulfills its fiduciary duties to each Fund and the Underlying Funds.
b. | Asset Allocation Risk |
Each Fund is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and Underlying Funds. Each Fund will be exposed to risks of the Underlying Funds in which it invests. The Funds will be affected by stock and bond market risks, among others. To the extent a Fund invests in Underlying Funds that expose it to non-traditional or alternative asset classes (which include investments that focus on a specialized asset class (e.g. long-short strategies), as well as specific market sectors within a broader asset class, the Fund will be exposed to the increased risk associated with those asset classes. The potential impact of the risks related to an asset class depends on the size of a Fund’s investment allocation to it.
c. | Asset Class Variation Risk |
The Underlying Funds invest principally in the securities or investments constituting their asset class. However, under normal market conditions, an Underlying Fund may vary the percentage of its assets in these securities or investments (subject to any applicable regulatory requirements). Depending upon the percentage of securities or investments in a particular asset class held by the Underlying Funds at any given time and the percentage of the Fund’s assets invested in various Underlying Funds, the Fund’s actual exposure to the securities or investments in a particular asset class may vary substantially from its allocation model for that asset class.
d. | Derivatives Risk |
Derivatives are speculative and may hurt a Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from a Fund’s derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual securities, and there can be no assurance that the use of this strategy will be successful.
Hedged Exposure Risk – Losses generated by a derivative or practice used by a Fund for hedging purposes should be offset in part by gains on the hedged investment depending on the degree of correlation between the hedging instrument and the assets hedged. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.
Correlation Risk – The Funds are exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.
Semi-Annual Report 2016
36
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Counterparty Risk – Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.
e. | Exchange-Traded Notes Risk |
Certain Funds may invest in exchange-traded notes (ETNs). ETNs are a type of unsecured, unsubordinated debt security that have characteristics and risks similar to those of fixed income securities and trade on a major exchange similar to shares of exchange-traded funds. However, this type of debt security differs from other types of bonds and notes because ETN returns are based upon the performance of a financial asset or market index minus applicable fees, no periodic coupon payments are distributed, and no principal protections exist. The purpose of ETNs is to create a type of security that combines the aspects of both bonds and exchange-traded funds. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or securities markets, changes in the applicable interest rates, changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced asset or index.
f. | Fund of Funds Risk |
Your cost of investing in one of the Funds, as a fund of funds, may be higher than the cost of investing in a mutual fund that only invests directly in individual securities. An Underlying Fund may change its investment objective or policies without a Fund’s approval, which could force the Fund to withdraw its investment from such Underlying Fund at a time that is unfavorable to the Fund. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund would indirectly bear the costs of these trades without accomplishing any investment purpose.
g. | Impact of Large Redemptions and Purchases of Fund Shares |
Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause a Fund to have to sell securities or invest additional cash. These transactions may adversely affect a Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of a Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sale of portfolio securities to cover the redemption request settles. For additional information on redemptions, please see the Statement of Changes in Net Assets.
h. | Performance Risk |
Each Fund’s investment performance is directly tied to the performance of the Underlying Funds and other investments in which the Fund invests. If one or more of the Underlying Funds fails to meet its investment objective, a Fund’s performance could be negatively affected. There can be no assurance that each Fund or any Underlying Fund will achieve its investment objective.
Principal | Risks of Underlying Funds |
a. | Alternative Strategies Risk |
Certain Funds invest in Underlying Funds that involve Alternative Strategies Risk. The performance of Underlying Funds that pursue alternative strategies is linked to the performance of highly volatile alternative asset classes (e.g., commodities and currencies) and alternative strategies (e.g., managed futures). To the extent a Fund invests in such Underlying Funds, the Fund’s share price will be exposed to potentially significant fluctuations in value. In addition, Underlying Funds that employ alternative strategies have the risk that anticipated opportunities do not play out as planned, resulting in potentially substantial losses to the Underlying Fund. Furthermore, alternative strategies may employ leverage, involve extensive short positions and/or focus on narrow segments of the market, which may magnify the overall risks and volatility associated with such Underlying Funds’ investments. Depending on the particular alternative strategies used by an Underlying Fund, it may be subject to risks not associated with more traditional investments. These risks may include, but are not limited to, derivatives risk, liquidity risk, credit risk, commodity risk and counterparty risk.
b. | Commodity Risk |
The Funds may invest in Underlying Funds that involve Commodity Risk. The value of commodities may be more volatile than the value of equity securities or debt instruments and their value may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity. The price of a commodity may be affected by demand/supply imbalances in the market for the commodity.
c. | Counterparty and Third Party Risk |
Transactions involving a counterparty or third party (other than the issuer of the instrument) are subject to the counterparty’s or third party’s credit risk and ability to perform in accordance with the terms of the transaction.
2016 Semi-Annual Report
37
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
d. | Credit Risk |
A debt instrument’s price depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory, geopolitical, or other conditions. High yield bonds (“junk bonds”) may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility.
e. | Derivatives Risk |
Derivatives can be highly volatile and involve risks in addition to the risks of the underlying security. Gains or losses from derivatives can be substantially greater than the derivatives’ original cost and can involve leverage.
f. | Emerging Markets Risk |
Emerging market securities are subject to a magnification of the risks that apply to foreign investments; such risks are greater for securities of companies in emerging market countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).
g. | Floating Rate Loan Risk |
Floating rate loans generally are subject to restrictions on resale. Floating rate loans sometimes trade infrequently in the secondary market. As a result, valuing a floating rate loan can be more difficult and buying and selling a floating rate loan at an acceptable price can be more difficult or delayed. Difficulty in selling a floating rate loan can result in a loss. In addition, a floating rate loan may not be fully collateralized which may cause the floating rate loan to decline significantly in value.
h. | Foreign Currency Exposure Risk |
The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the Fund more greatly to the extent the Underlying Fund does not hedge its currency risk, or hedging techniques used by the Underlying Fund are unsuccessful.
i. | Foreign Securities Risk |
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities.
j. | High-Yield Bond and Other Lower-Rated Securities Risk |
An Underlying Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Underlying Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.
k. | Illiquid Securities Risk |
The Funds may invest in Underlying Funds that hold illiquid securities. Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the Underlying Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect the Underlying Fund’s value or prevent the Underlying Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. Over recent years, the capacity of dealers to make markets in fixed income securities have been outpaced by the growth in the size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.
l. | Impact of Large Redemptions and Purchases of Underlying Fund Shares |
Occasionally, shareholders of an Underlying Fund may make large redemptions or purchases of the Underlying Fund’s shares, which may cause the Underlying Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Underlying Fund’s performance and increase transaction costs to Underlying Fund shareholders, including the Fund. In addition, large redemption requests may exceed the cash balance of the Underlying Fund and result in credit line borrowing fees and/or overdraft charges to the Underlying Fund until the sale of portfolio securities to cover the redemption request settles. For additional information on redemptions, please see the Statement of Changes in Net Assets.
Semi-Annual Report 2016
38
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
m. | Interest Rate Risk |
Certain Funds invest in underlying Funds that involve interest rate risk. Fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in the Underlying Fund’s, and possibly a Fund’s, net assets. An Underlying Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income securities with a greater time to maturity and/or lower coupon. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates.
n. | Market Risk |
Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in that market in which an Underlying Fund invests.
o. | Mid-Cap Securities Risk |
A Fund may invest in Underlying Funds that hold mid-cap securities. Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.
p. | REIT and Real Estate Risk |
The Funds may invest in Underlying Funds that are subject to REIT and Real Estate Risk. Investment in REITs and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include risks related to general, regional and local economic conditions; fluctuations in interest rates; property tax rates, zoning laws, environmental regulations and other governmental action; cash flow dependency; increased operating expenses; lack of availability of mortgage funds; losses due to natural disasters; changes in property values and rental rates; and other factors.
q. | Sector Risk |
At times, a Fund may have a significant portion of its assets invested in Underlying Funds that invest primarily in securities of companies conducting business in a broadly related group of industries within an economic sector. Companies in the same economic sector may be similarly affected by economic or market events, making a Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
r. | Short Sale Risk |
The Funds may invest in Underlying Funds that sell securities short. Short Sale risk is the risk that the price of a security sold short will increase in value between the time of the short sale and the time the Underlying Fund must purchase the security to return it to the lender. The Underlying Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Underlying Fund is unable, for whatever reason, to close out its short position.
s. | Small-Cap Securities Risk |
The Funds may invest in Underlying Funds that hold small-cap securities. Stocks of smaller companies are usually less stable in price and less liquid than larger, more established companies. Therefore, they generally involve greater risk. If the value of the Funds’ investment decrease, you may lose money.
Please read the prospectus for more detailed information regarding these and other risks.
7. Contingencies
In the normal course of business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds, and therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
2016 Semi-Annual Report
39
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
8. Tax Information
As of April 30, 2016, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund were as follows:
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Diversified Alternatives Fund | $ | 84,824,419 | $ | 853,818 | $ | (3,185,603 | ) | $ | (2,331,785 | ) | ||||||
Diversified Income Fund | 20,954,488 | 362,683 | (791,359 | ) | (428,676 | ) | ||||||||||
Dynamic Allocation Fund | 21,029,719 | 770,958 | (716,466 | ) | 54,492 |
The tax character of distributions paid during the fiscal year ended October 31, 2015 was as follows (total distributions paid may differ from the Statements of Changes in Net Assets because for tax purposes dividends are recognized when actually paid):
Distributions paid from | ||||||||||||||||||||||||||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Taxable Over- distribution | Tax Exempt Distributions | Return of Capital | Total Distributions Paid | |||||||||||||||||||||
Diversified Alternatives Fund | $ | 2,852,510 | $ | – | $ | 2,852,510 | $ | – | $ | – | $ | – | $ | 2,852,510 | ||||||||||||||
Diversified Income Fund | 651,093 | 1,184,632 | 1,835,725 | – | – | – | 1,835,725 | |||||||||||||||||||||
Dynamic Allocation Fund | 545,826 | – | 545,826 | – | – | – | | 545,826 | |
Amounts | listed as “–” are $0 or round to $0. |
As of October 31, 2015, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Fund | Undistributed Tax Exempt Income | Undistributed Ordinary Income | Undistributed Gains | Accumulated Earnings | Distributions Payable | Late Year Ordinary and Post-October Capital Loss Deferrals | Other Temporary Differences | Unrealized Appreciation/ Depreciation* | Accumulated Capital and Other Losses** | Total Accumulated Earnings/ (Deficit) | ||||||||||||||||||||||||||||||
Diversified Alternatives Fund | $ | – | $ | 158,222 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | (1,972,777 | ) | $ | (20,340,630 | ) | $ | (22,155,185 | ) | |||||||||||||||||
Diversified Income Fund | – | 51,773 | 175,195 | – | – | – | 3 | (735,455 | ) | – | (508,484 | ) | ||||||||||||||||||||||||||||
Dynamic Allocation Fund | – | 42,000 | 11,995 | – | – | – | – | 11,130 | (613,089 | ) | (547,964 | ) |
* | The difference between the book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to tax deferral of losses on wash sales. |
** | As of October 31, 2015, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the Treasury regulations, which expire in the years set forth below. |
Amounts listed as “–” are $0 or round to $0.
Fund | Amount | Expires | ||||||
Diversified Alternatives Fund | $ | 10,674,825 | 2017 (Short-Term) | |||||
Diversified Alternatives Fund | 6,953,184 | 2018 (Short-Term) | ||||||
Diversified Alternatives Fund | 1,084,237 | 2019 (Short-Term) | ||||||
Diversified Alternatives Fund | 1,628,384 | Unlimited (Short-Term) | ||||||
Dynamic Allocation Fund | 234,490 | 2016 (Short-Term) | ||||||
Dynamic Allocation Fund | 9,322 | 2017 (Short-Term) | ||||||
Dynamic Allocation Fund | 369,277 | 2018 (Short-Term) |
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Semi-Annual Report 2016
40
Notes to Financial Statements (concluded)
April 30, 2016 (Unaudited)
9. Significant Shareholders
As of April 30, 2016, the following Funds had shareholders with the percentage ownership indicated, which are considered significant shareholders (holdings greater than 5.0%) for financial reporting purposes:
Fund | Record Ownership % | Number of Account Owners | ||
Diversified Alternatives Fund | 44.5% | 4 | ||
Diversified Income Fund | 55.9 | 3 | ||
Dynamic Allocation Fund | 36.8 | 2 |
10. Line of Credit
Effective August 15, 2015, the Trust, on behalf of each of the funds of the Trust (the “Borrowers”), entered into a 364-day credit agreement (the “Agreement”) with State Street Bank and Trust Company (the “Bank”). The Agreement provides for a revolving credit facility (the “Credit Facility”) to be utilized for temporary or emergency purposes to fund shareholder redemptions or other short-term liquidity purposes in the amount of $250,000,000.
Principal on each outstanding loan made under the Agreement bears interest at a variable rate per annum equal to the higher of (a) the Federal Funds Rate as in effect of that day plus 1.25% or (b) the Overnight London Interbank Offered Rate (“LIBOR”) as in effect on that day plus 1.25%. In addition, the Borrowers shall pay to the Bank a commitment fee at the rate of 0.18% per annum on the daily unused portion of the Credit Facility, as applicable, which is allocated among the Borrowers in such manner as is determined by the Board to be reasonable. For each Fund that borrowed under the Credit Facility during the period, the following table shows the average outstanding daily balance for the Fund under the Credit Facility and the average weighted interest rate paid by the Fund during the period.
Average Outstanding Daily Balance | Average Weighted Interest Rate | Days Utilized | ||||||||||
Diversified Alternatives Fund | $ | 11,750,000 | 1.65 | % | 1 | |||||||
Diversified Income Fund | $ | 17,636 | 1.39 | % | 3 |
11. Subsequent Events
Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or adjustments were required to the financial statements as of April 30, 2016.
2016 Semi-Annual Report
41
Shareholder Expense Examples (Unaudited)
As a shareholder of the Aberdeen Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and (2) ongoing costs, including investment advisory fees, administration fees, transfer agent out-of-pocket expenses, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Aberdeen Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, November 1, 2015 and continued to hold your shares at the end of the reporting period, April 30, 2016.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Actual Expenses Paid During Period” for the class of a Fund that you own to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of a Fund and other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads). Therefore, the information for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value, November 1, 2015 | Actual April 30, 2016 | Hypothetical Ending Account Value | Actual Expenses Paid During Period*+ | Hypothetical Expenses Paid During Period*+1 | Annualized Expense Ratio** | |||||||||||||||||||||
Diversified Alternatives Fund | Class A | $ | 1,000.00 | $ | 983.10 | $ | 1,021.78 | $ | 3.06 | $ | 3.12 | 0.62% | ||||||||||||||
Class C | 1,000.00 | 980.50 | 1,018.65 | 6.16 | 6.27 | 1.25% | ||||||||||||||||||||
Class R | 1,000.00 | 981.80 | 1,020.49 | 4.34 | 4.42 | 0.88% | ||||||||||||||||||||
Institutional Service Class | 1,000.00 | 985.10 | 1,023.42 | 1.43 | 1.46 | 0.29% | ||||||||||||||||||||
Institutional Class | 1,000.00 | 985.10 | 1,023.62 | 1.23 | 1.26 | 0.25% | ||||||||||||||||||||
Diversified Income Fund | Class A | 1,000.00 | 1,005.10 | 1,022.13 | 2.74 | 2.77 | 0.55% | |||||||||||||||||||
Class C | 1,000.00 | 1,001.70 | 1,018.65 | 6.22 | 6.27 | 1.25% | ||||||||||||||||||||
Class R | 1,000.00 | 1,003.70 | 1,020.49 | 4.38 | 4.42 | 0.88% | ||||||||||||||||||||
Institutional Service Class | 1,000.00 | 1,006.60 | 1,023.62 | 1.25 | 1.26 | 0.25% | ||||||||||||||||||||
Institutional Class | 1,000.00 | 1,006.60 | 1,023.62 | 1.25 | 1.26 | 0.25% | ||||||||||||||||||||
Dynamic Allocation Fund | Class A | 1,000.00 | 988.00 | 1,022.13 | 2.72 | 2.77 | 0.55% | |||||||||||||||||||
Class C | 1,000.00 | 984.70 | 1,018.65 | 6.17 | 6.27 | 1.25% | ||||||||||||||||||||
Class R | 1,000.00 | 985.20 | 1,020.19 | 4.64 | 4.72 | 0.94% | ||||||||||||||||||||
Institutional Service Class | 1,000.00 | 989.40 | 1,023.62 | 1.24 | 1.26 | 0.25% | ||||||||||||||||||||
Institutional Class | 1,000.00 | 989.30 | 1,023.62 | 1.24 | 1.26 | 0.25% |
* | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period). |
** | The expense ratio presented represents a six-month, annualized ratio. |
+ | Expenses are based on the direct expenses of the Fund and do not include the effect of the Underlying Funds’ expenses, which are disclosed in the Fee and expense table and described more fully in a footnote to that table in your Fund Prospectus. |
1 | Represents the hypothetical 5% return before expenses. |
Semi-Annual Report 2016
42
FACTS | WHAT DO ABERDEEN FUNDS DO WITH YOUR PERSONAL INFORMATION? | |||||||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |||||||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
· Social Security number and account balances
· Transaction history and assets
· Checking account information and wire transfer instructions |
| ||||||
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Aberdeen Funds choose to share; and whether you can limit this sharing. | |||||||
Reasons we can share your personal information | Do Aberdeen Funds share? | | Can you limit this sharing? | | ||||
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||||||
For our marketing purposes— to offer our products and services to you | Yes | Yes | ||||||
For joint marketing with other financial companies | No | We don’t share | ||||||
For our affiliates’ everyday business purposes— information about your transactions and experiences | Yes | No | ||||||
For our affiliates’ everyday business purposes— information about your creditworthiness | No | We don’t share | ||||||
For our affiliates to market to you | No | We don’t share | ||||||
For nonaffiliates to market to you | No | We don’t share | ||||||
To limit our sharing | · Call 1-800-522-5465
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice.
However, you can contact us at any time to limit our sharing. |
| ||||||
Questions? | www.aberdeen-asset.us |
Page 2 |
Who we are | ||
Who is providing this notice? | Aberdeen’s North American Funds (collectively referred to as “Aberdeen Funds”) | |
What we do | ||
How do Aberdeen Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | |
How do Aberdeen Funds collect my personal information? | We collect your personal information, for example, when you:
· Open an account or give us your contact information
· Provide account information or make wire transfers
· Make deposits or withdrawals from your account | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
· Sharing for affiliates’ everyday business purposes—information about your creditworthiness
· Affiliates from using your information to market to you
· Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to everyone on your account. | |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
· Our affiliates include companies with an Aberdeen Asset Management name and wholly-owned subsidiaries of Aberdeen Asset Management PLC, a global financial services company. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
· Aberdeen Funds do not share personal information with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
· Aberdeen Funds don’t jointly market. | |
Other important information | ||
This Privacy Notice is being provided by Aberdeen Funds and Aberdeen Investment Funds, each a U.S.-registered open-end investment company, and North-American-registered closed-end investment companies managed by Aberdeen Asset Management Inc. or its affiliates (collectively, North American Funds). |
Corporate Information
Trustees
P. Gerald Malone, Chairman
Martin J. Gilbert
Richard H. McCoy
Neville J. Miles
Peter D. Sacks
John T. Sheehy
Warren C. Smith
John F. Solan, Jr.
Officers
Bev Hendry, President and Chief Executive Officer
Jeffrey Cotton, Chief Compliance Officer and Vice President
Andrea Melia, Treasurer and Chief Financial Officer
Megan Kennedy, Secretary and Vice President
Brad Crombie, Vice President
Lucia Sitar, Vice President
Alan Goodson, Vice President
Adam McCabe, Vice President
Jennifer Nichols, Vice President
Hugh Young, Vice President
Russell Barlow, Vice President
Eric Olsen, Assistant Treasurer
Brian O’Neill, Assistant Treasurer
Investment Manager
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Fund Administrator
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Transfer Agent
Boston Financial Data Services, Inc.
30 Dan Road
Canton, MA 02021
Distributor
Aberdeen Fund Distributors LLC
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Sub-Administrator, Custodian & Fund Accountant
State Street Bank and Trust Company
1 Iron Street 5th Floor
Boston, MA 02110
Independent Registered Public Accounting Firm
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Fund Counsel
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 aberdeen-asset.us |
AOE-0142-SAR
Aberdeen Funds
Fixed Income Series
Semi-Annual Report
April 30, 2016
Aberdeen Asia Bond Fund
Aberdeen Emerging Markets Debt Fund
Aberdeen Emerging Markets Debt Local Currency Fund
Aberdeen Global Fixed Income Fund
Aberdeen Tax-Free Income Fund
Aberdeen Ultra-Short Duration Bond Fund
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Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 866-667-9231 to request a prospectus, or download a prospectus at www.aberdeen-asset.us. Please read it carefully before investing any money.
Investing in mutual funds involves risk, including possible loss of principal.
Aberdeen Funds is distributed by Aberdeen Fund Distributors, LLC, Member FINRA, 1735 Market Street, 32nd Floor, Philadelphia, PA 19103.
Aberdeen Asset Management Inc. (AAMI) has been registered as an investment adviser under the Investment Advisers Act of 1940 since August 23,1995.
Statement Regarding Availability of Quarterly Portfolio Schedule.
The complete schedule of portfolio holdings for each fund of Aberdeen Funds (each, a “Fund” and collectively, the “Funds”) is included in the Funds’ semi-annual and annual reports to shareholders. Aberdeen Funds also files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q filings are available on the Commission’s website at http://www.sec.gov. The Funds’ Form N-Q filings may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on www.aberdeen-asset.us or upon request without charge.
Statement Regarding Availability of Proxy Voting Record.
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-667-9231. The information is also included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.aberdeen-asset.us and on the Commission’s website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available by August 30 of the relevant year: (i) upon request and without charge by calling 1-866-667-9231; and (ii) on the Commission’s website at www.sec.gov.
The performance of the global financial markets varied during the six-month period ended April 30, 2016. There were disparate returns among some of the various regional market indices – even within asset classes. There were several periods of volatility, attributable partly to investors’ concerns regarding the direction of U.S. Federal Reserve (Fed) monetary policy, economic growth in China and the ongoing slump in global oil and commodity prices. However, global equities rallied towards the end of the reporting period amid an upturn in the oil and commodity markets, more clarity on U.S. monetary policy, as well as the European Central Bank’s (ECB’s) introduction of fresh economic stimulus measures.
The Morgan Stanley Capital International (MSCI) World Index, a global equity market benchmark, returned -0.7% for the reporting period. Large-cap U.S. stocks finished in positive territory and outperformed their developed-market peers in Europe and Asia. The U.S. broader-market S&P 500 Index rose 0.4%, versus the -3.9% and -1.3% returns of the FTSE Europe Index and the MSCI All Country (AC) Asia-Pacific Index, respectively, for the period. Emerging markets stocks, as represented by the MSCI Emerging Markets Index, posted a virtually flat return for the period. The strong rebound in commodity prices propelled the S&P Global Natural Resources Index to a gain of 11.3%, with particular strength in the previously beaten-down metals and mining sector.
The U.S. equity market provided mixed performance over the reporting period, with shares of mid- and large-cap companies finishing modestly higher. Small-cap stocks produced negative returns, as their strong performance in March and April 2016 could not offset steep losses earlier in the reporting period. U.S. employment and personal income data were generally upbeat during the period; however, there was a notable slowdown in economic growth despite an increase in consumer spending. On the corporate earnings front, we believe that the persistently low interest rate environment and revised market expectations that the Fed may proceed more cautiously with future rate increases may lead banks to moderate their expectations for earnings later in 2016. In contrast, energy and industrial companies reported first-quarter 2016 results that may signal that their businesses are stabilizing – perhaps even improving in some cases.
Shares of European companies were the weakest global equity performers over the reporting period. In addition to investors’ concerns about global growth and declining oil prices, these stocks were exposed to several negative catalysts unique to the market – most notably the UK’s referendum on European Union (EU) membership and lingering geopolitical worries resulting from the terror attacks in Paris and Brussels. However, equity prices gained ground late in the period, as the ECB’s aggressive monetary easing, including a reduction in its deposit rate to -0.4%, buoyed investor sentiment. The uncertainty surrounding the EU membership referendum and relatively sluggish economic data hindered the performance of UK stocks, which ended the reporting period with a virtually flat return, as measured by the FTSE All Share Index.
Similar to many of their global market peers, Asian equities partially counterbalanced losses earlier in the reporting period with a turnaround in March and April 2016 on investors’ optimism regarding rising oil and commodity prices and global central bank monetary policy. The Bank of Japan’s surprise move to impose negative interest rates also had a positive impact. Market sentiment in India initially waned after the government failed to implement two key reforms – one on land acquisition and the other, a nationwide goods-and-services tax. However, losses subsequently were trimmed after the release of the latest budget, as the government appeared to stay on course with fiscal consolidation and increased its efforts to boost the rural economy. The upturn in commodity prices in the second half of the reporting period also improved the outlook for oil-exporting nations such as Malaysia and helped their market benchmark indices to stage a recovery. The Singapore stock market’s rebound was attributable in part to better-than-expected operating results in the banking sector. Although domestic lenders reported higher loan loss provisions, they made significant efforts to disclose details of their exposure to both China and the commodities market.
Although the MSCI Emerging Markets Index was basically unchanged during the reporting period, this was not indicative of the substantial dichotomy in performance among individual emerging market countries. Weakness in China and India offset notable strength in Brazil and Turkey. A sharp sell-off in Chinese stocks in response to slowing growth and the government’s devaluation of the yuan against the U.S. dollar, along with the continued decline in oil prices, initially triggered bouts of investor risk aversion. However, markets reversed direction and moved higher in the latter half of the reporting period. People’s Bank of China Governor Zhou Xiaochuan subsequently downplayed the continued depreciation of the yuan and refuted speculation of tighter capital controls. Other contributors to the rally included a rebound in commodity prices, as well as the Brazilian Senate’s much-anticipated vote to impeach troubled President Dilma Rousseff amid accusations of fiscal mismanagement and her alleged ties to the ongoing scandal at state-owned oil company Petrobras.
Global fixed-income securities significantly outperformed their equity counterparts in an environment of generally low investor risk appetite over the reporting period. Investment-grade bonds, as measured by the Barclays Global Aggregate Bond Index, gained 6.1%. Although investors questioned the effectiveness of negative interest rates imposed by the central banks in Europe and Japan, they appeared to be encouraged that monetary policy generally remained loose, as Asian central banks continued to reduce interest rates and the Fed adopted a more dovish monetary policy stance. The performance of global high-yield securities lagged that of investment-grade credits over the period, as the asset class has greater exposure to the volatility of commodity prices. The Bank of America Merrill Lynch Global High Yield Constrained Index returned 2.9%, led by emerging markets debt.
Outlook
During the six-month reporting period, we saw significant volatility and strong rallies in certain regions and sectors which do not necessarily reflect a corresponding positive change in fundamentals. We remain mindful of slowing global growth and uncertainty over monetary policymakers’ next steps, particularly in the U.S., where dollar strength weighs on corporate profitability. The risk of acceleration in China’s slowdown, or of a poor policy response to prevent it, also seems critical, in our view. In such an unstable environment, we advocate caution in setting expectations for corporate earnings, but we believe that we are also poised to take advantage of opportunities that market uncertainty creates.
We anticipate that global equities may remain volatile in the near term. Specifically, we believe that investors may return to a more cautious mood, given the highly anticipated Fed meeting in June, followed by the referendum on EU membership in the UK. Many unknowns remain, in our view: investors are wary of the effectiveness of central bank action; governments need to implement more proactive reforms; and there does not appear to be a sustained demand for commodities. We believe that all of these factors raise the specter of a protracted slump in the global financial markets. Notwithstanding the unpredictable climate, we maintain confidence in our equity investment process of bottom-up, fundamental research, choosing stocks of companies that we believe are well-managed market-leaders with efficient operations.
Hugh Young
Managing Director
Aberdeen Asset Management
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
2016 Semi-Annual Report
1
Aberdeen Asia Bond Fund (Unaudited)
Effective April 1, 2016, the Fund’s benchmark changed from the HSBC Asian Local Bond Index to the Markit iBoxx Asia Government Index (unhedged in U.S. dollars).
The Aberdeen Asia Bond Fund (Institutional Class shares net of fees) returned 3.84% for the six-month period ended April 30, 2016, versus the 6.03% return of its benchmark, the Markit iBoxx Asia Government Index, during the same period. For broader comparison, the average return of the Fund’s peer category of International Income Funds (comprising 45 funds), as measured by Lipper, Inc., was 5.11% for the period.
Most Asian bond markets strengthened while currencies were mixed over the six-month period ended April 30, 2016. The first half of the reporting period was marked by heightened global volatility. A confluence of events, such as the U.S. Federal Reserve’s (Fed’s) first interest-rate hike in nearly a decade, sharp gyrations in Chinese equities and the tumble in commodity prices, quelled investor risk appetite for Asian bonds. Market sentiment gradually recovered in the latter months of the period. Although investors questioned the effectiveness of negative interest rates imposed by central banks in Europe and Japan, they appeared to be encouraged that monetary policy generally remained loose, as Asian central banks continued to lower rates and the Fed adopted a more dovish policy stance. Additionally, Chinese economic growth fears abated as Beijing’s policy communication improved and commodity prices rebounded beginning in mid-February 2016.
The weaker U.S. dollar benefited most Asian currencies over the reporting period: the Malaysian ringgit and Indonesian rupiah saw notable gains, rebounding from underperformance in the previous six months; the Korean won and Philippine peso also rallied, but ended the period largely unchanged; the Indian rupee and Chinese yuan declined partly on the back of equity outflows in their respective markets.
Indonesian and Indian government bonds outperformed their Asian peers during the reporting period due to their respective central bank interest-rate cuts. The Indonesian market was also bolstered by stimulus measures in an effort to reboot the economy, while India gained further on the central bank’s liquidity-boosting measures and the announcement of a fiscally prudent budget, which eased initial investor concerns over a higher public wage bill. Bond markets in Taiwan, Thailand and Korea performed well over the period, particularly at the long end of the yield curve. Taiwan’s central bank eased monetary policy, while hopes of additional rate cuts buttressed the markets in Thailand and Korea. Singapore bond yields also moved lower over the reporting period, but the rally lost momentum after the central bank unexpectedly removed the appreciation bias from its currency policy, reflecting its concerns over slowing economic growth. Malaysian yields retreated on keen buying interest as valuations grew compelling, but profit-taking later ensued.
Elsewhere, volatility in China’s currency and equity markets forced government authorities to curb speculation. However, investors’ appetite for risk assets returned after Beijing assured investors that it had more-than-sufficient ammunition for fiscal stimulus to meet its growth targets. Philippine bond yields were mixed over the period. The impending Fed rate hike pushed yields higher, particularly at the short end of the curve, but buying interest subsequently emerged.
In the Asian credit markets, investment-grade spreads narrowed, but high-yield spreads generally widened, particularly among sovereign bonds. The markets’ performance was influenced significantly by commodity prices, which tumbled at first, but later rebounded as fears over China’s economy subsided. Towards the end of the reporting period, however, rising defaults in the Chinese onshore market dampened investor sentiment again.
Overall, the Fund’s relatively defensive positioning and the subsequent rise in investor risk appetite resulted in underperformance relative to its benchmark, the Markit iBoxx Asia Government Index, for the reporting period, most notably from the long positioning in the U.S. dollar, particularly against the Malaysian ringgit. Regarding the Fund’s interest-rate strategies, the notable detractors from the Fund’s relative performance included the underweight positions in Thai, Singapore and Korean bonds. Conversely, the overweight allocations to Indian and Indonesian bonds had a positive impact on Fund performance.
In currency management, the Fund’s underweight exposure to the Malaysian ringgit and overweight to the Indian rupee relative to its benchmark significantly detracted from Fund performance for the reporting period. The Fund’s overweight position in the Indonesian rupiah and the underweight allocation to the Korean won contributed to the Fund performance relative to its benchmark.
Within the U.S. dollar-denominated credit segment, the Fund posted a positive absolute return, but lagged the benchmark on a relative performance basis, mainly because of negative security selection in the investment-grade real estate and financial sectors, as well as the lower-rated1 quasi-sovereign sector.
Regarding the use of derivatives over the reporting period, the employment of forwards to manage exposure to Asian currencies2 contributed positively to Fund performance. However, this only partially offset the overall negative impact of currency management on performance. The Fund’s use of U.S. Treasury futures to hedge the U.S. interest-rate risk was also a marginal detractor from Fund performance for the period.
During the reporting period, we reduced the Fund’s overall short-duration3 positioning by approximately 30 basis points to an underweight position of one year versus the Fund’s benchmark. We accomplished this primarily through a reduction in short-duration positioning in Korea and Indonesia, and a longer duration in non-local
1 | Agency credit ratings are expressed as letter grades that range from “AAA” to “D” to communicate the respective agency’s opinion of relative level of credit risk. |
2 | A currency forward is a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date. |
3 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
Semi-Annual Report 2016
2
Aberdeen Asia Bond Fund (Unaudited) (concluded)
currency exposure. Additionally, we reduced long-duration exposure in China by roughly 0.2 year and increased the short-duration exposure in Malaysia and Thailand.
With respect to currency positioning over the reporting period, we decreased the Fund’s long U.S.-dollar exposure from an overweight allocation of about 15% to flat relative to the benchmark. Specifically, the Fund transitioned from a 1% underweight exposure versus the benchmark to the Philippine peso to an overweight of slightly more than 2%. A 10% underweight to the Korean won moved to a benchmark-neutral position. We reduced the Fund’s underweight exposure to the Indonesian rupiah by 1.5% to slightly below 1%, and in the currency overlay,4 we exited the Fund’s 3% short positions in each of the Australian and New Zealand dollars. Furthermore, we decreased the Fund’s overweight positions in the Indian rupee by 10% to 5%, and the Bangladeshi taka by 1.4%. We exited the Fund’s 3% allocation to the Sri Lankan rupee. Finally, we increased the Fund’s underweight position in the Singapore dollar from slightly below 1% to nearly 3%.
We think that it may be an exaggeration to say that March was a turning point for commodity-related and emerging markets. We believe that the environment remains in a state of flux. Risks persist, but markets are no longer on a downward trajectory with no end in sight, in our opinion. The Fed has adopted a more dovish stance and global monetary policy generally remains accommodative. While the Chinese economy faces hurdles, we feel that investor sentiment towards the mainland has become more rational as the economic and political backdrop continues to stabilize. Furthermore, commodity markets have arguably tested their lows, even though we believe that the weak global economy is unlikely to be able to support a sustained rally in prices. These factors have encouraged investors to reduce their significant underweight exposure to emerging markets.
In the near term, however, we think that further market consolidation is likely, even if valuations look attractive in bonds, equities and currencies. Specifically, we believe that investors may return to a more cautious mood, given the highly anticipated Fed meeting in June, followed by the referendum on European Union membership in the UK. Additionally, China-related concerns may resurface, given worries about speculation in commodities in the mainland and the rising number of corporate defaults. Nevertheless, we believe that any spike in volatility and swings in valuations may present us with buying opportunities.
Portfolio Management:
Aberdeen Asian Fixed Income Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Concentrating investments in the Asian region subjects the Fund to more volatility and greater risk of loss than geographically diverse mutual funds.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Derivatives are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these risks.
4 | A currency overlay segregates the currency component from other investments within a portfolio, allowing its separate management overlaid over the top of other assets. |
2016 Semi-Annual Report
3
Aberdeen Asia Bond Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | Inception2 | ||||||||||||||
Class A3 | w/o SC | 3.80% | 0.01% | 0.74% | 3.61% | |||||||||||||
w/SC4 | (0.58% | ) | (4.25% | ) | (0.13% | ) | 3.12% | |||||||||||
Class C3 | w/o SC | 3.41% | (0.82% | ) | 0.11% | 3.25% | ||||||||||||
w/SC5 | 2.41% | (1.80% | ) | 0.11% | 3.25% | |||||||||||||
Class R3,6 | w/o SC | 3.67% | (0.23% | ) | 0.51% | 3.48% | ||||||||||||
Institutional Service Class6,7 | w/o SC | 3.81% | 0.01% | 0.72% | 3.59% | |||||||||||||
Institutional Class6,7 | w/o SC | 3.84% | 0.15% | 0.93% | 3.72% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | Returns presented for the Fund for periods prior to July 20, 2009 reflect the performance of the predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | The Fund commenced operations on May 1, 2007. |
3 | Returns before the first offering of Class A, Class C and Class R (February 27, 2012) are based on the previous performance of the Institutional Class shares. This performance is substantially similar to what the Institutional Class would have produced because all classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the classes. |
4 | A 4.25% front-end sales charge was deducted. |
5 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
6 | Returns before the first offering of Institutional Service Class (January 4, 2010) are based on the previous performance of the Institutional Class shares. This performance is substantially similar to what the Institutional Service Class would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the two classes. |
7 | Not subject to any sales charges. |
Semi-Annual Report 2016
4
Aberdeen Asia Bond Fund (Unaudited)
Performance of a $1,000,000* Investment (as April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Asia Bond Fund, the Markit iBoxx® Asia Government Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Markit iBoxx® Asia Government Index is part of the Markit iBoxx ex-Japan Index family. The Markit iBoxx Asia ex-Japan Index family covers local currency sovereign and quasi-sovereign debt from 10 Asian markets. The 10 Asian markets include China, Hong Kong, Indonesia, India, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand. The indices serve as benchmarks for asset managers and investors and may form the basis for traded products, such as ETFs. Multiple-source pricing ensures that they are an accurate reflection of the underlying markets.
Effective April 1, 2016, the Markit iBoxx® Asia Government Index replaced the HSBC Asian Local Bond IndexTM as the Fund’s benchmark index because the HSBC Asian Local Bond IndexTM was discontinued in April 2016.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Corporate Bonds | 52.4% | |||
Government Bonds | 30.5% | |||
Repurchase Agreement | 4.8% | |||
Government Agencies | 2.0% | |||
Other assets in excess of liabilities | 10.3% | |||
100.0% |
The following chart summarizes the composition of the Fund’s portfolio, expressed as a percentage of net assets. The industries listed below may include more than one industry group. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Industries | ||||
Commercial Banks | 15.2% | |||
Diversified Financial Services | 9.0% | |||
Oil, Gas & Consumable Fuels | 7.2% | |||
Diversified Telecommunication Services | 4.1% | |||
Electric Utilities | 3.1% | |||
Real Estate | 2.5% | |||
Engineering & Construction | 1.8% | |||
Diversified Holding Companies | 1.6% | |||
Gas Utilities | 1.6% | |||
Machinery-Diversified | 1.2% | |||
Other | 52.7% | |||
100.0% |
Top Holdings* | ||||
Power Finance Corp. Ltd., Series 118B 08/27/2024 | 5.2% | |||
China Government Bond, Series 1110 04/28/2031 | 5.0% | |||
Lembaga Pembiayaan Ekspor Indonesia, Series OB 03/13/2020 | 4.5% | |||
Bank OCBC Nisp Tbk PT, Series OB 02/10/2017 | 4.4% | |||
Korea Treasury Bond, Series 3509 09/10/2035 | 3.6% | |||
Korea Treasury Bond, Series 2512 12/10/2025 | 2.7% | |||
Indian Railway Finance Corp. Ltd., Series 69 03/10/2025 | 2.3% | |||
ICICI Bank Ltd. 08/06/2024 | 2.3% | |||
Korea Treasury Bond, Series 2403 03/10/2024 | 2.2% | |||
Bangladesh Treasury Bond, Series 5YR 08/14/2018 | 2.1% | |||
Other | 65.7% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Top Countries | ||||
China | 21.0% | |||
India | 19.4% | |||
Republic of South Korea | 15.1% | |||
Indonesia | 14.2% | |||
Hong Kong | 5.6% | |||
United States | 4.8% | |||
Thailand | 2.5% | |||
Bangladesh | 2.1% | |||
Singapore | 2.1% | |||
Philippines | 1.2% | |||
Other | 12.0% | |||
100.0% |
2016 Semi-Annual Report
5
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Asia Bond Fund
Shares or Principal Amount | Value (US$) | |||||||
CORPORATE BONDS (52.4%) |
| |||||||
CHINA (11.9%) |
| |||||||
Diversified Telecommunication Services (0.6%) |
| |||||||
Proven Honour Capital Ltd. (USD), 4.13%, 05/19/2025 (a) | $ | 200,000 | $ | 202,208 | ||||
Engineering & Construction (1.8%) | ||||||||
China Railway Resources Huitung Ltd. (USD), 3.85%, 02/05/2023 (a) | 301,000 | 311,317 | ||||||
Zhaohai Investment BVI Ltd. (USD), 3.10%, 07/23/2018 (a) | 300,000 | 299,430 | ||||||
610,747 | ||||||||
Food Products (0.6%) | ||||||||
FPC Treasury Ltd. (USD), 4.50%, 04/16/2023 (a) | 200,000 | 200,965 | ||||||
Gas Utilities (1.6%) | ||||||||
China Resources Gas Group Ltd. (USD), 4.50%, 04/05/2022 (a) | 200,000 | 215,060 | ||||||
ENN Energy Holdings Ltd. (USD), 6.00%, 05/13/2021 (a) | 283,000 | 319,488 | ||||||
534,548 | ||||||||
Machinery-Diversified (0.6%) | ||||||||
Shanghai Electric Group Investment Ltd. (USD), 3.00%, 08/14/2019 (a) | 200,000 | 203,154 | ||||||
Oil, Gas & Consumable Fuels (3.9%) | ||||||||
CNOOC Nexen Finance 2014 ULC (USD), 4.25%, 04/30/2024 | 256,000 | 265,852 | ||||||
CNPC General Capital Ltd. (USD), 2.75%, 05/14/2019 (a) | 200,000 | 203,141 | ||||||
Kunlun Energy Co. Ltd. (USD), 3.75%, 05/13/2025 (a) | 314,000 | 314,101 | ||||||
Sinopec Capital 2013 Ltd., 144A (USD), 3.13%, 04/24/2023 (a) | 350,000 | 345,038 | ||||||
Sinopec Group Overseas Development 2013 Ltd. (USD), 4.38%, 10/17/2023 (a) | 200,000 | 213,059 | ||||||
1,341,191 | ||||||||
Real Estate (1.2%) | ||||||||
China Overseas Finance Cayman III Ltd. (USD), 5.38%, 10/29/2023 (a) | 200,000 | 220,870 | ||||||
Wanda Properties International Co. Ltd. (USD), 7.25%, 01/29/2024 (a) | 200,000 | 206,150 | ||||||
427,020 | ||||||||
Semiconductors (1.0%) | ||||||||
Semiconductor Manufacturing International Corp. (USD), 4.13%, 10/07/2019 (a) | 330,000 | 339,602 | ||||||
Transportation (0.6%) | ||||||||
Eastern Creation II Investment Holdings Ltd., REGS (USD), 2.63%, 11/20/2017 (a) | 200,000 | 201,141 | ||||||
4,060,576 | ||||||||
HONG KONG (5.6%) | ||||||||
Commercial Banks (0.9%) | ||||||||
Standard Chartered PLC (USD), 4.05%, 04/12/2026 (a) | 300,000 | 299,552 | ||||||
Diversified Holding Companies (1.6%) |
| |||||||
Hutchison Whampoa International Ltd. | ||||||||
(USD), 7.63%, 04/09/2019 (a) | 100,000 | 115,934 | ||||||
(USD), 4.63%, 01/13/2022 (a) | 400,000 | 442,645 | ||||||
558,579 | ||||||||
Electric Utilities (1.6%) |
| |||||||
Zhejiang Energy Group Hong Kong Ltd. (USD), 2.30%, 09/30/2017 (a) | 540,000 | 540,175 | ||||||
Real Estate (0.7%) | ||||||||
Hong Kong Land Finance Cayman Islands Co. Ltd. (The) (USD), 4.50%, 06/01/2022 | 200,000 | 221,436 | ||||||
Real Estate Investment Trust (REIT) Funds (0.8%) |
| |||||||
Champion MTN Ltd. (USD), 3.75%, 01/17/2023 (a) | 278,000 | 278,865 | ||||||
1,898,607 | ||||||||
INDIA (18.1%) | ||||||||
Commercial Banks (5.7%) | ||||||||
Axis Bank Ltd., Series 21 (INR), 9.15%, 12/31/2022 | 40,000,000 | 628,432 | ||||||
HDFC Bank Ltd. (USD), 3.00%, 03/06/2018 (a) | 300,000 | 303,630 | ||||||
ICICI Bank Ltd. (INR), 9.15%, 08/06/2024 | 50,000,000 | 790,593 | ||||||
State Bank of India (USD), 3.62%, 04/17/2019 (a) | 200,000 | 207,000 | ||||||
1,929,655 | ||||||||
Diversified Financial Services (8.7%) |
| |||||||
Indian Railway Finance Corp. Ltd. | ||||||||
(USD), 3.92%, 02/26/2019 (a) | 394,000 | 409,420 | ||||||
Series 69 (INR), 8.95%, 03/10/2025 | 50,000,000 | 798,894 | ||||||
Power Finance Corp. Ltd., Series 118B (INR), 9.39%, 08/27/2024 | 110,000,000 | 1,769,746 | ||||||
2,978,060 | ||||||||
Diversified Telecommunication Services (2.3%) |
| |||||||
Bharti Airtel International Netherlands BV (USD), 5.13%, 03/11/2023 (a) | 519,000 | 558,664 | ||||||
GCX Ltd. (USD), 7.00%, 08/01/2019 (a) | 250,000 | 236,247 | ||||||
794,911 | ||||||||
Electric Utilities (0.6%) |
| |||||||
NTPC Ltd. (USD), 4.25%, 02/26/2026 (a) | 200,000 | 204,820 | ||||||
Oil, Gas & Consumable Fuels (0.8%) |
| |||||||
ONGC Videsh Ltd. (USD), 4.63%, 07/15/2024 (a) | 260,000 | 271,008 | ||||||
6,178,454 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
6
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Asia Bond Fund
Shares or Principal Amount | Value (US$) | |||||||
INDONESIA (7.1%) |
| |||||||
Commercial Banks (4.4%) | ||||||||
Bank OCBC Nisp Tbk PT, Series OB (IDR), 9.40%, 02/10/2017 | $ | 20,000,000,000 | $ | 1,524,619 | ||||
Electric Utilities (0.9%) |
| |||||||
Majapahit Holding BV (USD), 7.88%, 06/29/2037 (a) | 150,000 | 181,875 | ||||||
Perusahaan Listrik Negara PT (USD), 5.25%, 10/24/2042 (a) | 131,000 | 120,848 | ||||||
302,723 | ||||||||
Oil, Gas & Consumable Fuels (1.2%) |
| |||||||
Pertamina Persero PT (USD), 5.63%, 05/20/2043 (a) | 433,000 | 399,618 | ||||||
Transportation (0.6%) |
| |||||||
Pelabuhan Indonesia II PT (USD), 4.25%, 05/05/2025 (a) | 200,000 | 194,250 | ||||||
2,421,210 | ||||||||
MALAYSIA (0.6%) |
| |||||||
Oil, Gas & Consumable Fuels (0.6%) |
| |||||||
Petronas Global Sukuk Ltd. (USD), 2.71%, 03/18/2020 (a) | 200,000 | 201,338 | ||||||
PHILIPPINES (1.2%) | ||||||||
Diversified Telecommunication Services (1.2%) |
| |||||||
Philippine Long Distance Telephone Co. (USD), 8.35%, 03/06/2017 | 400,000 | 421,000 | ||||||
REPUBLIC OF SOUTH KOREA (2.8%) |
| |||||||
Commercial Banks (0.6%) |
| |||||||
Shinhan Bank (USD), 1.88%, 07/30/2018 (a) | 200,000 | 200,469 | ||||||
Diversified Financial Services (0.3%) |
| |||||||
Hyundai Capital Services, Inc. (USD), 2.63%, 09/29/2020 (a) | 100,000 | 100,479 | ||||||
Machinery-Diversified (0.6%) |
| |||||||
Doosan Heavy Industries & Construction Co. Ltd. (USD), 2.13%, 04/27/2020 (a) | 215,000 | 214,307 | ||||||
Metals & Mining (0.6%) |
| |||||||
Minera y Metalurgica del Boleo SA de CV (USD), 2.88%, 05/07/2019 (a) | 200,000 | 204,094 | ||||||
Oil, Gas & Consumable Fuels (0.7%) |
| |||||||
Korea National Oil Corp. (USD), 2.63%, 04/14/2026 (a) | 239,000 | 237,875 | ||||||
957,224 | ||||||||
SINGAPORE (2.1%) |
| |||||||
Commercial Banks (0.6%) | ||||||||
United Overseas Bank Ltd. (USD), 3.50%, 09/16/2026 (b) | 200,000 | 200,688 | ||||||
Commercial Services & Supplies (0.9%) |
| |||||||
HPHT Finance 15 Ltd. (USD), 2.88%, 03/17/2020 (a) | 318,000 | 321,053 | ||||||
Real Estate (0.6%) |
| |||||||
Global Logistic Properties Ltd. (USD), 3.88%, 06/04/2025 (a) | 200,000 | 199,797 | ||||||
721,538 | ||||||||
THAILAND (2.5%) |
| |||||||
Commercial Banks (2.5%) | ||||||||
Bangkok Bank PCL (USD), 9.03%, 03/15/2029 (a) | 50,000 | 70,880 | ||||||
Krung Thai Bank PCL (USD), 5.20%, 12/26/2024 (a)(b) | 379,000 | 390,508 | ||||||
Siam Commercial Bank PCL (USD), 3.50%, 04/07/2019 (a) | 389,000 | 401,428 | ||||||
862,816 | ||||||||
UNITED KINGDOM (0.5%) |
| |||||||
Commercial Banks (0.5%) |
| |||||||
HSBC Holdings PLC (USD), 6.38%, 03/30/2025 (b)(c) | 170,000 | 164,203 | ||||||
Total Corporate Bonds |
| 17,886,966 | ||||||
GOVERNMENT BONDS (30.5%) |
| |||||||
BANGLADESH (2.1%) |
| |||||||
Bangladesh Treasury Bond, Series 5YR (BDT), 11.78%, 08/14/2018 | 50,000,000 | 724,292 | ||||||
CHINA (9.1%) | ||||||||
China Government Bond | ||||||||
Series 1019 (CNY), 3.41%, 06/24/2020 (d) | 2,000,000 | 316,643 | ||||||
Series 1124 (CNY), 3.57%, 11/17/2021 (d) | 2,000,000 | 319,869 | ||||||
Series 1505 (CNY), 3.64%, 04/09/2025 (d) | 2,000,000 | 325,180 | ||||||
Series 1604 (CNY), 2.85%, 01/28/2026 (d) | 2,700,000 | 413,446 | ||||||
Series 1110 (CNY), 4.15%, 04/28/2031 (d) | 10,000,000 | 1,717,540 | ||||||
3,092,678 | ||||||||
INDIA (0.1%) | ||||||||
India Government Bond | ||||||||
(INR), 8.40%, 07/28/2024 | 40,000 | 628 | ||||||
(INR), 8.60%, 06/02/2028 | 1,000,000 | 16,003 | ||||||
16,631 | ||||||||
INDONESIA (7.1%) | ||||||||
Indonesia Government International Bond (USD), 5.25%, 01/17/2042 (a) | 300,000 | 307,271 | ||||||
Indonesia Treasury Bond, Series FR72 (IDR), 8.25%, 05/15/2036 | 3,300,000,000 | 259,020 | ||||||
Lembaga Pembiayaan Ekspor Indonesia, Series OB (IDR), 9.50%, 03/13/2020 | 20,000,000,000 | 1,548,226 | ||||||
Perusahaan Penerbit SBSN Indonesia III (USD), 4.35%, 09/10/2024 (a) | 312,000 | 318,614 | ||||||
2,433,131 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
7
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Asia Bond Fund
Shares or Principal Amount | Value (US$) | |||||||
MONGOLIA (0.6%) |
| |||||||
Mongolia Government International Bond (USD), 10.88%, 04/06/2021 (a) | $ | 200,000 | $ | 203,494 | ||||
REPUBLIC OF SOUTH KOREA (11.5%) |
| |||||||
Korea Treasury Bond | ||||||||
Series 2106 (KRW), 4.25%, 06/10/2021 | 500,000,000 | 495,803 | ||||||
Series 2403 (KRW), 3.50%, 03/10/2024 | 750,000,000 | 743,414 | ||||||
Series 2512 (KRW), 2.25%, 12/10/2025 | 1,000,000,000 | 912,855 | ||||||
Series 3312 (KRW), 3.75%, 12/10/2033 | 500,000,000 | 560,702 | ||||||
Series 3509 (KRW), 2.63%, 09/10/2035 | 1,250,000,000 | 1,227,625 | ||||||
3,940,399 | ||||||||
Total Government Bonds |
| 10,410,625 | ||||||
GOVERNMENT AGENCIES (2.0%) |
| |||||||
INDIA (1.2%) |
| |||||||
Export-Import Bank of India, REGS (USD), 2.75%, 04/01/2020 (a) | 300,000 | 299,803 | ||||||
Rural Electrification Corp. Ltd., Series 103A (INR), 9.35%, 10/19/2016 | 8,000,000 | 121,209 | ||||||
421,012 | ||||||||
REPUBLIC OF SOUTH KOREA (0.8%) |
| |||||||
Export-Import Bank of Korea (USD), 4.00%, 01/11/2017 | 250,000 | 254,528 | ||||||
Total Government Agencies |
| 675,540 | ||||||
REPURCHASE AGREEMENT (4.8%) |
| |||||||
UNITED STATES (4.8%) |
| |||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $1,643,004 collateralized by U.S. Treasury Note, 2.125%, maturing 05/15/2025; total market value of $1,678,725 | 1,643,000 | 1,643,000 | ||||||
Total Repurchase Agreement |
| 1,643,000 | ||||||
Total Investments |
| 30,616,131 | ||||||
Other assets in excess of liabilities—10.3% |
| 3,520,358 | ||||||
Net Assets—100.0% |
| $ | 34,136,489 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(c) | Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely. |
(d) | China A securities. These securities are issued in local currency, traded in the local markets and are held through a qualified foreign institutional investor license. |
(e) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
BDT | Bangladesh Taka |
CNH | Chinese Yuan Renminbi Offshore |
CNY | Chinese Yuan Renminbi |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
KRW | South Korean Won |
MYR | Malaysian Ringgit |
NZD | New Zealand Dollar |
PHP | Philippine Peso |
SGD | Singapore Dollar |
THB | Thai Baht |
USD | U.S. Dollar |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
8
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Asia Bond Fund
At April 30, 2016, the Fund held the following futures contracts:
Futures Contracts | Counterparty | Number of Contracts Long/(Short) | Expiration Date | Unrealized Appreciation/ (Depreciation) | ||||||||||||
United States Treasury Note 6%-10 year | UBS | (3 | ) | 06/21/2016 | $ | (2,351 | ) | |||||||||
United States Treasury Note 6%-5 year | UBS | (149 | ) | 06/30/2016 | 5,841 | |||||||||||
United States Treasury Note 6%-10 year | UBS | 65 | 06/21/2016 | 2,191 | ||||||||||||
United States Treasury Note 6%-30 year | UBS | 5 | 06/21/2016 | (12,956 | ) | |||||||||||
$ | (7,275 | ) |
At April 30, 2016, the Fund’s open forward foreign currency exchange contracts were as follows:
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
Chinese Yuan Renminbi Offshore/United States Dollar | ||||||||||||||||||||||||||
08/05/2016 | Goldman Sachs | CNH | 11,763,000 | USD | 1,800,000 | $ | 1,806,136 | $ | 6,136 | |||||||||||||||||
Indian Rupee/United States Dollar | ||||||||||||||||||||||||||
05/18/2016 | State Street | INR | 90,194,000 | USD | 1,300,000 | 1,356,046 | 56,046 | |||||||||||||||||||
Indonesian Rupiah/United States Dollar | ||||||||||||||||||||||||||
06/03/2016 | BNP Paribas | IDR | 25,494,500,000 | USD | 1,900,000 | 1,924,694 | 24,694 | |||||||||||||||||||
06/03/2016 | Goldman Sachs | IDR | 5,320,000,000 | USD | 400,000 | 401,631 | 1,631 | |||||||||||||||||||
Malaysian Ringgit/United States Dollar | ||||||||||||||||||||||||||
09/30/2016 | Deutsche Bank | MYR | 5,485,900 | USD | 1,400,000 | 1,390,634 | (9,366 | ) | ||||||||||||||||||
New Zealand Dollar/United States Dollar | ||||||||||||||||||||||||||
05/23/2016 | State Street | NZD | 2,931,307 | USD | 1,900,000 | 2,044,518 | 144,518 | |||||||||||||||||||
Philippine Peso/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Goldman Sachs | PHP | 135,517,000 | USD | 2,900,000 | 2,879,566 | (20,434 | ) | ||||||||||||||||||
Singapore Dollar/United States Dollar | ||||||||||||||||||||||||||
06/30/2016 | Royal Bank of Canada | SGD | 6,983,328 | USD | 5,100,000 | 5,187,076 | 87,076 | |||||||||||||||||||
South Korean Won/United States Dollar | ||||||||||||||||||||||||||
05/13/2016 | State Street | KRW | 8,464,992,000 | USD | 7,000,000 | 7,429,708 | 429,708 | |||||||||||||||||||
Thai Baht/United States Dollar | ||||||||||||||||||||||||||
05/16/2016 | Goldman Sachs | THB | 53,722,500 | USD | 1,500,000 | 1,537,695 | 37,695 | |||||||||||||||||||
$ | 25,957,704 | $ | 757,704 |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
9
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Asia Bond Fund
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Depreciation | |||||||||||||||||||||
United States Dollar/Chinese Yuan Renminbi Offshore | ||||||||||||||||||||||||||
08/05/2016 | Goldman Sachs | USD | 700,000 | CNH | 4,574,500 | $ | 702,386 | $ | (2,386 | ) | ||||||||||||||||
United States Dollar/Indian Rupee | ||||||||||||||||||||||||||
05/18/2016 | Credit Suisse | USD | 3,400,000 | INR | 235,892,000 | 3,546,581 | (146,581 | ) | ||||||||||||||||||
05/18/2016 | Standard Chartered Bank | USD | 200,000 | INR | 13,564,000 | 203,932 | (3,932 | ) | ||||||||||||||||||
United States Dollar/Indonesian Rupiah | ||||||||||||||||||||||||||
06/03/2016 | Goldman Sachs | USD | 1,600,000 | IDR | 21,280,000,000 | 1,606,523 | (6,523 | ) | ||||||||||||||||||
06/03/2016 | Standard Chartered Bank | USD | 1,000,000 | IDR | 13,495,000,000 | 1,018,798 | (18,798 | ) | ||||||||||||||||||
United States Dollar/New Zealand Dollar | ||||||||||||||||||||||||||
05/23/2016 | State Street | USD | 1,900,000 | NZD | 3,000,205 | 2,092,573 | (192,573 | ) | ||||||||||||||||||
United States Dollar/Singapore Dollar | ||||||||||||||||||||||||||
06/30/2016 | State Street | USD | 1,300,000 | SGD | 1,761,995 | 1,308,774 | (8,774 | ) | ||||||||||||||||||
United States Dollar/South Korean Won | ||||||||||||||||||||||||||
05/13/2016 | State Street | USD | 4,200,000 | KRW | 5,066,780,000 | 4,447,104 | (247,104 | ) | ||||||||||||||||||
United States Dollar/Thai Baht | ||||||||||||||||||||||||||
05/16/2016 | Deutsche Bank | USD | 100,000 | THB | 3,515,500 | 100,624 | (624 | ) | ||||||||||||||||||
$ | 15,027,295 | $ | (627,295 | ) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
10
Aberdeen Emerging Markets Debt Fund (Unaudited)
The Aberdeen Emerging Markets Debt Fund (Institutional Class shares net of fees) returned 5.71% for the six-month period ended April 30, 2016, versus the 5.35% return of its benchmark, the J.P. Morgan Emerging Markets Bond (EMBI) Global Diversified Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Emerging Markets Hard Currency Debt Funds (comprising 91 funds), as measured by Lipper, Inc., was 4.38% for the period.
Despite considerable volatility, emerging-market (EM) bonds performed well over the six-month period ended April 30, 2016. The performance of the asset class was particularly strong toward the end of the period, as markets rebounded from weakness at the start of 2016.
EM debt began the reporting period on a positive note, but later surrendered some of its gains as investors became increasingly certain that the U.S. Federal Reserve (Fed) would raise interest rates before the end of the 2015 calendar year. This was confirmed in December, as the Fed raised its benchmark rate by 25 basis points – its first increase since 2006. In the same month, the European Central Bank (ECB) generally disappointed investors with the limited expansion of its stimulus package, which neither increased the pace of its monthly bond purchases nor removed the yield floor (under which the ECB can buy only bonds with yields exceeding the deposit rate).
As the reporting period progressed, the weakness in markets was exacerbated by further declines in the oil price after the Organization of the Petroleum Exporting Countries (OPEC) declined to cut production. In early 2016, the prices of both West Texas Intermediate and Brent crude oil dipped below US$28 per barrel. The oil-price slump, combined with investors’ growing fears about the health of the Chinese economy, drove down the prices of assets perceived as “higher risk” – including EM bonds. Oil prices subsequently recovered somewhat, despite remaining volatile.
The macroeconomic fears over oil prices and China receded in February 2016, however, as commodity markets rose and investors reacted positively to global central banks’ monetary policy actions. The Fed refrained from raising interest rates further and indicated that it expected to increase them only twice in 2016, rather than the four times that the central bank had suggested in December. Markets appeared to take notice of statements acknowledging that the Fed was considering global conditions in making its monetary policy decisions. Investor sentiment improved considerably and was bolstered further in March 2016 by the ECB’s announcement of a more extensive expansion of its stimulus program, with substantially increased bond purchases and the inclusion of non-financial corporate bonds. This led to falling yields and, therefore, increased investor appetite for higher-yielding securities such as EM bonds.
Elsewhere, the People’s Bank of China continued its monetary easing by cutting the reserve-requirement ratio for banks by 0.50% in February 2016. The International Monetary Fund announced in November that the yuan would be included in its Special Drawing Rights1 basket of currencies beginning in October 2016. While the direct impact of inclusion will be minimal, we believe that it confirms China’s ongoing commitment to liberalizing its capital account and may result in some gradual managed depreciation over the medium term. Latin American bond markets performed very well towards the end of the reporting period, aided by the prospect of political change in Brazil and the steady recovery in commodity prices.
The latter part of the reporting period saw investors shrug off disappointment that OPEC members failed to reach a deal to stem oil production. Elsewhere, the Fed’s statement in April 2016 did not provide a great deal of new information but was regarded by the market as slightly dovish. Nevertheless, we think that an interest-rate increase in June remains in the cards, dependent on U.S. economic data.
The Fund modestly outperformed its benchmark, the J.P. Morgan EMBI Global Diversified Index, during the reporting period. The main contributors to Fund performance included overweight positions in Brazil, Kazakhstan, Indonesia and Argentina relative to the benchmark, as well as underweight allocations to Poland and Hungary, and security selection in Ukraine. Conversely, Fund performance was hindered by the currency exposure in Malaysia, Mexico and Colombia, along with overweight positions in Iraq and Ghana relative to the Fund’s benchmark.
The Fund may invest in derivatives for hedging purposes and to gain risk exposure to countries, currencies and securities in which the Fund is permitted to invest. The use of derivatives during the reporting period subtracted approximately 1.14% from the Fund’s total return.
During the reporting period, we participated in Argentina’s first new Eurobond issuance since the country defaulted in 2001 by purchasing the 10-year bond. We also bought Abu Dhabi’s new 10-year issue. We initiated a switch within Morocco, preferring the state-controlled fertilizer company Office Chérifien des Phosphates (OCP) to the sovereign bond, and we added to the Fund’s position in Ghana as we believe the country may see further improvement in its fiscal situation. We participated in new issues from Mexican state-owned oil company Petróleos Mexicanos (Pemex), Paraguay, Mongolia and a new quasi-sovereign issuer from Azerbaijan, Southern Gas Corridor, all of which we believed were attractively priced relative to their existing bond yield curves. We also reduced the Fund’s holdings in Russia, taking some profits after the bonds performed well in 2015. In the local currency space, we reduced the Fund’s positions in Russian and Peruvian local currency bonds and in the Mexican peso. Furthermore, we increased the Fund’s exposure to the Brazilian real and reduced the Russian ruble position following a period of strong relative performance.
We maintain a positive view of the short-term outlook for the EM debt asset class. With monetary policy comments from the Fed joining those of the other major global central banks in highlighting
1 | Special drawing rights comprise an international type of monetary reserve currency, created by the International Monetary Fund in 1969, which operates as a supplement to the existing reserves of member countries. |
2016 Semi-Annual Report
11
Aberdeen Emerging Markets Debt Fund (Unaudited) (concluded)
lower-for-longer interest rates, we think that the search for higher-yielding assets should provide positive momentum for asset prices. Global fund flows into EM debt in March 2016 were at a 21-month high,2 as retail investors piled back into both debt and equity funds. We believe that the risks to this outlook include a further decline in commodity prices, while China remains a key test of investor sentiment, although the recent headline economic data suggest that policymakers’ monetary easing measures are beginning to have a positive impact on the EM bond markets.
Portfolio Management:
Aberdeen Emerging Markets Debt Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). The Fund’s investments in high yield bonds and other lower-rated securities will subject the Fund to substantial risk of loss.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
The Fund is non-diversified and may hold larger positions in fewer securities than other funds and have greater risk than more diversified funds.
Derivatives are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these risks.
2 | Source: Bank of America Merrill Lynch, May 2016. |
Semi-Annual Report 2016
12
Aberdeen Emerging Markets Debt Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | Inception1 | |||||||||||
Class A | w/o SC | 5.51% | (0.13% | ) | 0.51% | |||||||||
w/SC2 | 1.02% | (4.42% | ) | (0.72% | ) | |||||||||
Class C | w/o SC | 5.17% | (0.76% | ) | (0.21% | ) | ||||||||
w/SC3 | 4.17% | (1.71% | ) | (0.21% | ) | |||||||||
Class R4 | w/o SC | 5.41% | (0.29% | ) | 0.28% | |||||||||
Institutional Service Class4 | w/o SC | 5.70% | 0.22% | 0.78% | ||||||||||
Institutional Class4 | w/o SC | 5.71% | 0.22% | 0.75% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | The Fund commenced operations on November 1, 2012. |
2 | A 4.25% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
2016 Semi-Annual Report
13
Aberdeen Emerging Markets Debt Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Emerging Markets Debt Fund, the J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The J.P. Morgan EMBI Global Diversified Index is an alternatively weighted index that assigns a larger weight to less liquid issues from countries with smaller debt stocks and limits the weights of those index countries with larger debt stocks by only including a specified portion of these countries’ eligible current face amounts of debt outstanding. The index consists of U.S. dollar-denominated Brady bonds, Eurobonds, and traded loans issued by sovereign and quasisovereign entities issued in emerging markets countries.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Government Bonds | 67.6% | |||
Government Agencies | 18.7% | |||
Corporate Bonds | 11.4% | |||
Repurchase Agreement | 2.3% | |||
Other assets in excess of liabilities | –% | |||
100.0% |
Amounts listed as “–” are 0% or round to 0%
The following chart summarizes the composition of the Fund’s portfolio, expressed as a percentage of net assets. The industries listed below may include more than one industry group. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Industries | ||||
Commercial Banks | 3.0% | |||
Oil, Gas & Consumable Fuels | 2.4% | |||
Diversified Telecommunication Services | 0.7% | |||
Chemicals | 0.7% | |||
Holding Companies-Diversified Operations | 0.7% | |||
Media | 0.7% | |||
Retail | 0.7% | |||
Oil & Gas Services | 0.7% | |||
Electric Utilities | 0.6% | |||
Food Products | 0.5% | |||
Other | 89.3% | |||
100.0% |
Top Holdings* | ||||
Argentine Republic Government International Bond 12/31/2033 | 2.6% | |||
Mexico Government International Bond 01/11/2040 | 2.5% | |||
Kazakhstan Temir Zholy Finance BV 07/10/2042 | 2.4% | |||
Ghana Government International Bond 01/18/2026 | 2.3% | |||
Brazil Notas do Tesouro Nacional, Series F 01/01/2025 | 2.2% | |||
Russian Federal Bond – OFZ, Series 6203 08/03/2016 | 2.2% | |||
Federal Democratic Republic of Ethiopia 12/11/2024 | 1.9% | |||
Serbia International Bond 09/28/2021 | 1.9% | |||
Turkey Government International Bond 09/26/2022 | 1.8% | |||
Uruguay Government International Bond 06/18/2050 | 1.8% | |||
Other | 78.4% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Top Countries | ||||
Mexico | 9.7% | |||
Brazil | 8.9% | |||
Indonesia | 6.4% | |||
Russia | 5.4% | |||
Argentina | 5.3% | |||
Turkey | 4.2% | |||
Kazakhstan | 3.8% | |||
Dominican Republic | 3.3% | |||
Uruguay | 3.2% | |||
Ukraine | 3.1% | |||
Other | 46.7% | |||
100.0% |
Semi-Annual Report 2016
14
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Fund
Shares or Principal Amount | Value (US$) | |||||||
CORPORATE BONDS (11.4%) | ||||||||
BRAZIL (2.9%) | ||||||||
Commercial Banks (0.4%) | ||||||||
Banco do Brasil SA (BRL), 9.75%, 07/18/2017 (a) | $ | 420,000 | $ | 114,206 | ||||
Engineering & Construction (0.0%) | ||||||||
OAS Investments GmbH (USD), 8.25%, 10/19/2019 (a)(b) | 200,000 | 10 | ||||||
Food Products (0.5%) | ||||||||
Marfrig Overseas Ltd. (USD), 9.50%, 05/04/2020 (a) | 150,000 | 153,750 | ||||||
Oil, Gas & Consumable Fuels (2.0%) | ||||||||
Petrobras Global Finance BV | ||||||||
(USD), 3.00%, 01/15/2019 | 130,000 | 116,961 | ||||||
(USD), 7.88%, 03/15/2019 | 194,000 | 193,273 | ||||||
(USD), 5.75%, 01/20/2020 | 297,000 | 272,497 | ||||||
582,731 | ||||||||
850,697 | ||||||||
CHILE (1.2%) | ||||||||
Airlines (0.5%) | ||||||||
Latam Airlines 2015-1 Pass Through Trust A (USD), 4.20%, 08/15/2029 (a) | 150,000 | 135,000 | ||||||
Retail (0.7%) | ||||||||
SACI Falabella (USD), 3.75%, 04/30/2023 (a) | 200,000 | 202,311 | ||||||
337,311 | ||||||||
INDIA (1.1%) | ||||||||
Commercial Banks (1.1%) | ||||||||
State Bank of India (USD), 3.25%, 04/18/2018 (a) | 310,000 | 316,074 | ||||||
MEXICO (1.3%) | ||||||||
Commercial Banks (0.6%) | ||||||||
BBVA Bancomer SA (USD), 6.75%, 09/30/2022 (a) | 150,000 | 164,625 | ||||||
Holding Companies-Diversified Operations (0.7%) |
| |||||||
Alfa SAB de CV (USD), 6.88%, 03/25/2044 (a) | 200,000 | 206,000 | ||||||
370,625 | ||||||||
MOROCCO (0.7%) | ||||||||
Chemicals (0.7%) | ||||||||
OCP SA (USD), 5.63%, 04/25/2024 (a) | 200,000 | 209,750 | ||||||
OMAN (0.6%) | ||||||||
Electric Utilities (0.6%) | ||||||||
Lamar Funding Ltd. (USD), 3.96%, 05/07/2025 (a) | 200,000 | 184,000 | ||||||
PERU (0.2%) | ||||||||
Metals & Mining (0.2%) | ||||||||
Southern Copper Corp. (USD), 5.88%, 04/23/2045 | 68,000 | 62,339 | ||||||
RUSSIA (1.4%) | ||||||||
Diversified Telecommunication Services (0.7%) |
| |||||||
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC (USD), 7.75%, 02/02/2021 (a) | 200,000 | 217,973 | ||||||
Oil & Gas Services (0.7%) | ||||||||
EDC Finance Ltd. (USD), 4.88%, 04/17/2020 (a) | 200,000 | 194,001 | ||||||
411,974 | ||||||||
SOUTH AFRICA (0.7%) | ||||||||
Media (0.7%) | ||||||||
Myriad International Holdings BV (USD), 5.50%, 07/21/2025 (a) | 200,000 | 204,408 | ||||||
TURKEY (0.9%) | ||||||||
Commercial Banks (0.9%) | ||||||||
Turkiye Garanti Bankasi AS (USD), 5.25%, 09/13/2022 (a) | 250,000 | 257,008 | ||||||
VENEZUELA (0.4%) | ||||||||
Oil, Gas & Consumable Fuels (0.4%) | ||||||||
Petroleos de Venezuela SA (USD), 9.00%, 11/17/2021 (a) | 320,000 | 125,920 | ||||||
Total Corporate Bonds | 3,330,106 | |||||||
GOVERNMENT BONDS (67.6%) | ||||||||
ANGOLA (0.7%) | ||||||||
Angolan Government International Bond (USD), 9.50%, 11/12/2025 (a) | 200,000 | 195,260 | ||||||
ARGENTINA (5.3%) | ||||||||
Argentine Republic Government International Bond | ||||||||
(USD), 7.50%, 04/22/2026 (a) | 381,000 | 386,715 | ||||||
(EUR), 7.82%, 12/31/2033 | 165,132 | 187,383 | ||||||
(USD), 8.28%, 12/31/2033 | 729,339 | 763,983 | ||||||
(USD), 2.50%, 12/31/2038 (c) | 320,000 | 204,000 | ||||||
1,542,081 | ||||||||
ARMENIA (1.0%) | ||||||||
Armenia International Bond (USD), 6.00%, 09/30/2020 (a) | 290,000 | 289,304 | ||||||
BRAZIL (5.2%) | ||||||||
Brazil Notas do Tesouro Nacional | ||||||||
Series B (BRL), 6.00%, 08/15/2020 (d) | 550,000 | 456,243 | ||||||
Series F (BRL), 10.00%, 01/01/2025 | 2,630,000 | 660,560 | ||||||
Series B (BRL), 6.00%, 08/15/2030 (d) | 280,000 | 232,328 | ||||||
Series B (BRL), 6.00%, 08/15/2050 (d) | 658,412 | 186,352 | ||||||
1,535,483 | ||||||||
COLOMBIA (0.7%) | ||||||||
Colombia Government International Bond (USD), 5.63%, 02/26/2044 | 200,000 | 204,000 | ||||||
DOMINICAN REPUBLIC (3.3%) | ||||||||
Dominican Republic International Bond | ||||||||
(USD), 7.50%, 05/06/2021 (a) | 160,000 | 175,200 | ||||||
(USD), 6.88%, 01/29/2026 (a) | 100,000 | 107,500 | ||||||
(USD), 7.45%, 04/30/2044 (a) | 360,000 | 381,600 | ||||||
(USD), 6.85%, 01/27/2045 (a) | 300,000 | 300,000 | ||||||
964,300 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
15
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Fund
Shares or Principal Amount | Value (US$) | |||||||
EGYPT (0.9%) | ||||||||
Egypt Government International Bond (USD), 5.88%, 06/11/2025 (a) | $ | 310,000 | $ | 277,512 | ||||
EL SALVADOR (1.4%) | ||||||||
El Salvador Government International Bond | ||||||||
(USD), 5.88%, 01/30/2025 (a) | 140,000 | 123,900 | ||||||
(USD), 6.38%, 01/18/2027 (a) | 280,000 | 246,400 | ||||||
(USD), 7.65%, 06/15/2035 (a) | 35,000 | 31,413 | ||||||
401,713 | ||||||||
ETHIOPIA (1.9%) | ||||||||
Federal Democratic Republic of Ethiopia (USD), 6.63%, 12/11/2024 (a) | 600,000 | 544,620 | ||||||
GABON (0.6%) | ||||||||
Gabon Government International Bond (USD), 6.38%, 12/12/2024 (a) | 200,000 | 174,724 | ||||||
GEORGIA (1.5%) | ||||||||
Georgia Government International Bond (USD), 6.88%, 04/12/2021 (a) | 400,000 | 440,500 | ||||||
GHANA (2.3%) | ||||||||
Ghana Government International Bond (USD), 8.13%, 01/18/2026 (a) | 850,000 | 671,670 | ||||||
GUATEMALA (0.7%) | ||||||||
Guatemala Government Bond (USD), 4.88%, 02/13/2028 (a) | 200,000 | 204,500 | ||||||
HONDURAS (1.0%) | ||||||||
Honduras Government International Bond (USD), 7.50%, 03/15/2024 (a) | 290,000 | 307,400 | ||||||
INDONESIA (4.0%) | ||||||||
Indonesia Government International Bond | ||||||||
(USD), 5.88%, 03/13/2020 (a) | 230,000 | 256,447 | ||||||
(USD), 4.88%, 05/05/2021 (a) | 200,000 | 216,728 | ||||||
(USD), 6.63%, 02/17/2037 (a) | 100,000 | 118,376 | ||||||
Indonesia Treasury Bond | ||||||||
Series FR71 (IDR), 9.00%, 03/15/2029 | 3,096,000,000 | 255,253 | ||||||
Series FR68 (IDR), 8.38%, 03/15/2034 | 3,983,000,000 | 316,154 | ||||||
1,162,958 | ||||||||
IVORY COAST (1.1%) | ||||||||
Ivory Coast Government International Bond (USD), 5.75%, 12/31/2032 (a)(c) | 340,000 | 309,434 | ||||||
JAMAICA (1.4%) | ||||||||
Jamaica Government International Bond (USD), 7.88%, 07/28/2045 | 400,000 | 416,000 | ||||||
KENYA (1.4%) | ||||||||
Kenya Government International Bond (USD), 6.88%, 06/24/2024 (a) | 430,000 | 404,243 | ||||||
MEXICO (4.7%) | ||||||||
Mexican Bonos, Series M (MXN), 5.75%, 03/05/2026 | 8,740,000 | 504,162 | ||||||
Mexican Udibonos, Series S (MXN), 4.50%, 11/22/2035 (d) | 2,212,505 | 147,994 | ||||||
Mexico Government International Bond (USD), 6.05%, 01/11/2040 | 610,000 | 722,850 | ||||||
1,375,006 | ||||||||
MONGOLIA (2.1%) | ||||||||
Development Bank of Mongolia LLC (USD), 5.75%, 03/21/2017 (a)(e) | 430,000 | 420,325 | ||||||
Mongolia Government International Bond (USD), 10.88%, 04/06/2021 (a) | 200,000 | 203,494 | ||||||
623,819 | ||||||||
MOROCCO (0.7%) | ||||||||
Morocco Government International Bond (USD), 5.50%, 12/11/2042 (a) | 200,000 | 211,056 | ||||||
MOZAMBIQUE (0.7%) | ||||||||
Mozambique International Bond (USD), 10.50%, 01/18/2023 (a) | 266,000 | 216,790 | ||||||
PAKISTAN (2.2%) | ||||||||
Pakistan Government International Bond | ||||||||
(USD), 8.25%, 04/15/2024(a) | 400,000 | 421,255 | ||||||
(USD), 8.25%, 09/30/2025(a) | 200,000 | 210,682 | ||||||
631,937 | ||||||||
PARAGUAY (1.7%) | ||||||||
Paraguay Government International Bond | ||||||||
(USD), 5.00%, 04/15/2026(a) | 200,000 | 204,000 | ||||||
(USD), 6.10%, 08/11/2044(a) | 300,000 | 306,000 | ||||||
510,000 | ||||||||
ROMANIA (1.3%) | ||||||||
Romanian Government International Bond (USD), 6.75%, 02/07/2022 (a) | 310,000 | 366,963 | ||||||
RUSSIA (3.2%) | ||||||||
Russian Federal Bond — OFZ | ||||||||
Series 6203 (RUB), 6.90%, 08/03/2016 | 42,000,000 | 643,858 | ||||||
Series 6207 (RUB), 8.15%, 02/03/2027 | 1,126,000 | 16,732 | ||||||
Series 6212 (RUB), 7.05%, 01/19/2028 | 21,038,000 | 285,823 | ||||||
946,413 | ||||||||
RWANDA (0.8%) | ||||||||
Rwanda International Government Bond (USD), 6.63%, 05/02/2023 (a) | 250,000 | 243,800 | ||||||
SERBIA (2.6%) | ||||||||
Serbia International Bond | ||||||||
(USD), 5.25%, 11/21/2017(a) | 200,000 | 206,750 | ||||||
(USD), 7.25%, 09/28/2021(a) | 480,000 | 543,743 | ||||||
750,493 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
16
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Fund
Shares or Principal Amount | Value (US$) | |||||||
SOUTH AFRICA (0.4%) | ||||||||
South Africa Government International Bond (USD), 5.88%, 05/30/2022 | $ | 100,000 | $ | 109,265 | ||||
TANZANIA (0.6%) | ||||||||
Tanzania Government International Bond (USD), 6.89%, 03/09/2020 (a)(f) | 177,778 | 180,445 | ||||||
TURKEY (3.3%) | ||||||||
Turkey Government International Bond | ||||||||
(USD), 6.25%, 09/26/2022 | 480,000 | 538,200 | ||||||
(USD), 5.75%, 03/22/2024 | 200,000 | 219,500 | ||||||
(USD), 6.75%, 05/30/2040 | 170,000 | 201,875 | ||||||
959,575 | ||||||||
UKRAINE (3.1%) | ||||||||
Ukraine Government International Bond | ||||||||
(USD), 7.75%, 09/01/2019 (a) | 303,921 | 293,344 | ||||||
(USD), 7.75%, 09/01/2020 (a) | 294,000 | 281,972 | ||||||
(USD), 7.75%, 09/01/2021(a) | 108,000 | 103,297 | ||||||
(USD), 7.75%, 09/01/2024 (a) | 108,000 | 102,352 | ||||||
(USD), 0.00%, 05/31/2040 (a)(f) | 426,000 | 133,036 | ||||||
914,001 | ||||||||
UNITED ARAB EMIRATES (1.7%) | ||||||||
Abu Dhabi Government International Bond (USD), 3.13%, 05/03/2026 (a) | 290,000 | 292,175 | ||||||
Emirate of Dubai Government International Bonds (USD), 5.25%, 01/30/2043 (a) | 210,000 | 194,292 | ||||||
486,467 | ||||||||
URUGUAY (3.2%) | ||||||||
Uruguay Government International Bond | ||||||||
(UYU), 5.00%, 09/14/2018 (d) | 7,494,784 | 235,200 | ||||||
(UYU), 4.25%, 04/05/2027 | 4,254,143 | 124,103 | ||||||
(UYU), 4.25%, 04/05/2027 (d) | 2,044,467 | 59,641 | ||||||
(USD), 5.10%, 06/18/2050 | 540,000 | 506,250 | ||||||
925,194 | ||||||||
VENEZUELA (0.9%) | ||||||||
Venezuela Government International Bond (USD), 7.75%, 10/13/2019 (a) | 683,500 | 274,254 | ||||||
Total Government Bonds | 19,771,180 | |||||||
GOVERNMENT AGENCIES (18.7%) | ||||||||
AZERBAIJAN (1.4%) | ||||||||
Southern Gas Corridor CJSC (USD), 6.88%, 03/24/2026 (a)(e) | 200,000 | 205,550 | ||||||
State Oil Co. of the Azerbaijan Republic (USD), 6.95%, 03/18/2030 (a) | 220,000 | 209,550 | ||||||
415,100 | ||||||||
BRAZIL (0.8%) | ||||||||
Banco Nacional de Desenvolvimento Economico e Social (USD), 6.50%, 06/10/2019 (a) | 220,000 | 228,734 | ||||||
CHILE (0.7%) | ||||||||
Empresa Nacional del Petroleo (USD), 4.38%, 10/30/2024 (a) | 200,000 | 205,062 | ||||||
ECUADOR (0.8%) | ||||||||
EP PetroEcuador via Noble Sovereign Funding I Ltd. (USD), 6.26%, 09/24/2019 (a)(e)(f) | 250,526 | 227,979 | ||||||
GEORGIA (0.7%) | ||||||||
Georgian Railway JSC (USD), 7.75%, 07/11/2022 (a) | 200,000 | �� | 215,540 | |||||
INDONESIA (2.4%) | ||||||||
Pertamina Persero PT | ||||||||
(USD), 4.88%, 05/03/2022 (a) | 220,000 | 226,762 | ||||||
(USD), 6.00%, 05/03/2042 (a) | 490,000 | 470,289 | ||||||
697,051 | ||||||||
KAZAKHSTAN (3.8%) | ||||||||
Kazakhstan Temir Zholy Finance BV (USD), 6.95%, 07/10/2042 (a) | 750,000 | 701,355 | ||||||
KazMunayGas National Co. JSC | ||||||||
(USD), 9.13%, 07/02/2018 (a) | 130,000 | 142,350 | ||||||
(USD), 7.00%, 05/05/2020 (a) | 240,000 | 255,648 | ||||||
1,099,353 | ||||||||
MEXICO (3.7%) | ||||||||
Petroleos Mexicanos | ||||||||
(USD), 6.88%, 08/04/2026 (a) | 132,000 | 145,662 | ||||||
(USD), 6.63%, 06/15/2038 | 170,000 | 170,425 | ||||||
(USD), 6.50%, 06/02/2041 | 340,000 | 339,320 | ||||||
(USD), 6.38%, 01/23/2045 | 161,000 | 156,975 | ||||||
(USD), 5.63%, 01/23/2046 | 300,000 | 267,093 | ||||||
1,079,475 | ||||||||
MONGOLIA (0.7%) | ||||||||
Trade & Development Bank of Mongolia LLC (USD), 9.38%, 05/19/2020 (a)(e) | 220,000 | 204,494 | ||||||
RUSSIA (0.8%) | ||||||||
Vnesheconombank Via VEB Finance PLC (USD), 6.90%, 07/09/2020 (a) | 220,000 | 231,000 | ||||||
SOUTH AFRICA (0.8%) | ||||||||
Eskom Holdings SOC Ltd. (USD), 7.13%, 02/11/2025 (a) | 240,000 | 226,102 | ||||||
TUNISIA (1.6%) | ||||||||
Banque Centrale de Tunisie International Bond | ||||||||
(USD), 5.75%, 01/30/2025 (a) | 300,000 | 269,886 | ||||||
(USD), 5.75%, 01/30/2025 (a) | 230,000 | 206,912 | ||||||
476,798 | ||||||||
VENEZUELA (0.5%) | ||||||||
Petroleos de Venezuela SA | ||||||||
(USD), 5.25%, 04/12/2017 (a) | 138,300 | 75,719 | ||||||
(USD), 8.50%, 11/02/2017 (a) | 120,000 | 70,200 | ||||||
145,919 | ||||||||
Total Government Agencies | 5,452,607 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
17
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Fund
Shares or Principal Amount | Value (US$) | |||||||
REPURCHASE AGREEMENT (2.3%) | ||||||||
UNITED STATES (2.3%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $675,002, collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $689,106 | $ | 675,000 | $ | 675,000 | ||||
Total Repurchase Agreement | 675,000 | |||||||
Total Investments | 29,228,893 | |||||||
Other assets in excess of liabilities—0.0% | 2,740 | |||||||
Net Assets—100.0% | $ | 29,231,633 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Security is in default. |
(c) | Indicates a stepped coupon bond. This bond was issued with a low coupon that gradually increases over the life of the bond. |
(d) | Inflation linked security. |
(e) | This security is government guaranteed. |
(f) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(g) | See accompanying Notes to Portfolio of Investments for tax unrealized appreciation/depreciation of securities. |
ARS | Argentine Peso |
BRL | Brazilian Real |
COP | Colombian Peso |
EUR | Euro Currency |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
RUB | New Russian Ruble |
USD | U.S. Dollar |
UYU | Uruguayan Peso |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
18
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Fund
At April 30, 2016, the Fund’s open forward foreign currency exchange contracts were as follows:
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation | |||||||||||||||||||||
Argentine Peso/United States Dollar | ||||||||||||||||||||||||||
11/21/2016 | Citibank | ARS | 2,749,000 | USD | 156,016 | $ | 170,964 | $ | 14,948 | |||||||||||||||||
12/20/2016 | Citibank | ARS | 1,477,000 | USD | 84,642 | 90,203 | 5,561 | |||||||||||||||||||
Brazilian Real/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | BRL | 898,000 | USD | 217,660 | 259,305 | 41,645 | |||||||||||||||||||
05/24/2016 | JPMorgan Chase | BRL | 1,230,000 | USD | 317,501 | 355,172 | 37,671 | |||||||||||||||||||
Colombian Peso/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Citibank | COP | 803,801,000 | USD | 232,649 | 281,316 | 48,667 | |||||||||||||||||||
05/24/2016 | Goldman Sachs | COP | 961,053,000 | USD | 313,046 | 336,351 | 23,305 | |||||||||||||||||||
Indian Rupee/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | JPMorgan Chase | INR | 37,871,000 | USD | 544,828 | 568,724 | 23,896 | |||||||||||||||||||
Indonesian Rupiah/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Citibank | IDR | 1,892,340,000 | USD | 139,760 | 143,071 | 3,311 | |||||||||||||||||||
05/24/2016 | JPMorgan Chase | IDR | 1,491,766,000 | USD | 109,931 | 112,785 | 2,854 | |||||||||||||||||||
Mexican Peso/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Goldman Sachs | MXN | 4,419,000 | USD | 252,421 | 255,114 | 2,693 | |||||||||||||||||||
$ | 2,573,005 | $ | 204,551 |
Sale Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Depreciation | |||||||||||||||||||||
United States Dollar/Brazilian Real | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | USD | 1,379,580 | BRL | 5,730,000 | $ | 1,654,583 | $ | (275,003 | ) | ||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 69,460 | BRL | 247,000 | 71,323 | (1,863 | ) | ||||||||||||||||||
United States Dollar/Colombian Peso | ||||||||||||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 509,271 | COP | 1,764,854,000 | 617,667 | (108,396 | ) | ||||||||||||||||||
United States Dollar/Euro | ||||||||||||||||||||||||||
07/14/2016 | Barclays Bank | USD | 175,879 | EUR | 154,000 | 176,725 | (846 | ) | ||||||||||||||||||
United States Dollar/Indian Rupee | ||||||||||||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 275,682 | INR | 19,193,000 | 288,229 | (12,547 | ) | ||||||||||||||||||
United States Dollar/Indonesian Rupiah | ||||||||||||||||||||||||||
05/24/2016 | Citibank | USD | 520,484 | IDR | 7,185,283,000 | 543,244 | (22,760 | ) | ||||||||||||||||||
United States Dollar/Malaysian Ringgit | ||||||||||||||||||||||||||
05/24/2016 | Citibank | USD | 523,770 | MYR | 2,220,000 | 567,410 | (43,640 | ) | ||||||||||||||||||
United States Dollar/Mexican Peso | ||||||||||||||||||||||||||
07/14/2016 | UBS | USD | 590,399 | MXN | 10,658,000 | 615,299 | (24,900 | ) | ||||||||||||||||||
United States Dollar/New Russian Ruble | ||||||||||||||||||||||||||
05/24/2016 | UBS | USD | 587,530 | RUB | 42,426,000 | 651,530 | (64,000 | ) | ||||||||||||||||||
$ | 5,186,010 | $ | (553,955 | ) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
19
Aberdeen Emerging Markets Debt Local Currency Fund (Unaudited)
The Aberdeen Emerging Markets Debt Local Currency Fund (Institutional Class shares net of fees) returned 8.00% for the six-month period ended April 30, 2016, versus the 8.93% return of its benchmark, the J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM), for the same period. For broader comparison, the average return of the Fund’s Lipper peer category of Emerging Markets Local Currency Debt Funds (comprising 30 funds) was 7.60% for the period.
Despite considerable volatility, emerging-market (EM) bonds performed well over the six-month period ended April 30, 2016. The performance of the asset class was particularly strong toward the end of the period, as markets rebounded from weakness at the start of 2016.
EM debt began the reporting period on a positive note, but later surrendered some of its gains as investors became increasingly certain that the U.S. Federal Reserve (Fed) would raise interest rates before the end of the 2015 calendar year. This was confirmed in December, as the Fed raised its benchmark rate by 25 basis points – its first increase since 2006. In the same month, the European Central Bank (ECB) generally disappointed investors with the limited expansion of its stimulus package, which neither increased the pace of its monthly bond purchases nor removed the yield floor (under which the ECB can buy only bonds with yields exceeding the deposit rate).
As the reporting period progressed, the weakness in markets was exacerbated by further declines in the oil price after the Organization of the Petroleum Exporting Countries (OPEC) declined to cut production. In early 2016, the prices of both West Texas Intermediate and Brent crude oil dipped below US$28 per barrel. The oil-price slump, combined with investors’ growing fears about the health of the Chinese economy, drove down the prices of assets perceived as “higher risk” – including EM bonds. Oil prices subsequently recovered somewhat, despite remaining volatile.
The macroeconomic fears over oil prices and China receded in February 2016, however, as commodity markets rose and investors reacted positively to global central banks’ monetary policy actions. The Fed refrained from raising interest rates further and indicated that it expected to increase them only twice in 2016, rather than the four times that the central bank had suggested in December. Markets appeared to take notice of statements acknowledging that the Fed was considering global conditions in making its monetary policy decisions. Investor sentiment improved considerably and was bolstered further in March 2016 by the ECB’s announcement of a more extensive expansion of its stimulus program, with substantially increased bond purchases and the inclusion of non-financial corporate bonds. This led to falling yields and, therefore, increased investor appetite for higher-yielding securities such as EM bonds.
Elsewhere, the People’s Bank of China continued its monetary easing by cutting the reserve-requirement ratio for banks by 0.50% in February 2016. The International Monetary Fund announced in November that the yuan would be included in its Special Drawing Rights1 basket of currencies beginning in October 2016. While the direct impact of inclusion will be minimal, we believe that it confirms China’s ongoing commitment to liberalizing its capital account and may result in some gradual managed depreciation over the medium term. Latin American bond markets performed very well towards the end of the reporting period, aided by the prospect of political change in Brazil and the steady recovery in commodity prices.
The latter part of the reporting period saw investors shrug off disappointment that OPEC members failed to reach a deal to stem oil production. Elsewhere, the Fed’s statement in April 2016 did not provide a great deal of new information but was regarded by the market as slightly dovish. Nevertheless, we think that an interest-rate increase in June remains in the cards, dependent on U.S. economic data.
The Fund underperformed relative to its benchmark, the J.P. Morgan GBI-EM Index, over the reporting period. The main contributors to Fund performance were overweight positions in Brazil and Indonesia relative to the index, as well as the exposure to the Argentine peso, which is not represented in the benchmark, and an underweight allocation to the South African rand. Conversely, the primary detractors from the Fund’s relative performance for the period included an overweight position in Mexico, currency exposure in India and Uruguay, which are not represented in the benchmark index, and an underweight allocation to Malaysia.
The Fund may invest in derivatives for hedging purposes and to gain risk exposure to countries, currencies and securities in which the Fund is permitted to invest. The use of derivatives during the reporting period subtracted approximately 0.01% from the Fund’s total return.
During the reporting period, we reduced the Fund’s exposure to Russian interest rates, as we believe that the risk-return profile is the most attractive in the short end of the bond yield curve. We decreased the Fund’s position in Indonesia, as the local bond market had outperformed versus its peers on investors’ expectations of an interest-rate cut by the central bank. We also initiated a relative value switch within the Fund’s position in Poland, preferring a slight duration2 extension, which, in our opinion., offered an opportunity for greater returns. We also trimmed the Fund’s holdings in Romania and reinvested a portion of the sales proceeds into a position in Hungary. In the currency space, we increased the positions in the Argentine peso and Brazilian real. We funded a position in the Chilean peso through a reduction in the Colombian peso. Finally, we decreased the Fund’s exposure to the Hungarian forint and Turkish lira while concurrently increasing the exposure to the Indonesian rupiah and Mexican peso.
1 | Special drawing rights comprise an international type of monetary reserve currency, created by the International Monetary Fund in 1969, which operates as a supplement to the existing reserves of member countries. |
2 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
Semi-Annual Report 2016
20
Aberdeen Emerging Markets Debt Local Currency Fund (Unaudited) (concluded)
We maintain a positive view of the short-term outlook for the EM debt asset class. With monetary policy comments from the Fed joining those of the other major global central banks in highlighting lower-for-longer interest rates, we think that the search for higher-yielding assets should provide positive momentum for asset prices. Global fund flows into EM debt in March 2016 were at a 21-month high,3 as retail investors piled back into both debt and equity funds. We believe that the risks to this outlook include a further decline in commodity prices, while China remains a key test of investor sentiment, although we think that the recent headline economic data suggest that policymakers’ monetary easing measures are beginning to have a positive impact on the EM bond markets.
Portfolio Management:
Aberdeen Emerging Markets Debt Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). The Fund’s investments in high-yield bonds and other lower-rated securities will subject the Fund to substantial risk of loss.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
The Fund is non-diversified and may hold larger positions in fewer securities than other funds and have greater risk than more diversified funds.
Non-investment-grade debt securities (high yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.
Derivatives are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
3 | Source: Bank of America Merrill Lynch, April 2016. |
2016 Semi-Annual Report
21
Aberdeen Emerging Markets Debt Local Currency Fund (Unaudited)
Average Annual Total Return (For periods ended April 30, 2016) | Six Month† | 1 Yr. | Inception1 | |||||||||||
Class A | w/o SC | 7.99% | (5.47% | ) | (4.02% | ) | ||||||||
w/SC2 | 3.42% | (9.54% | ) | (4.84% | ) | |||||||||
Class C | w/o SC | 7.39% | (6.19% | ) | (4.71% | ) | ||||||||
w/SC3 | 6.39% | (7.12% | ) | (4.71% | ) | |||||||||
Class R4 | w/o SC | 7.71% | (5.82% | ) | (4.33% | ) | ||||||||
Institutional Service Class4 | w/o SC | 8.16% | (5.13% | ) | (3.74% | ) | ||||||||
Institutional Class4 | w/o SC | 8.00% | (5.13% | ) | (3.74% | ) |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | The Fund commenced operations on May 2, 2011. |
2 | A 4.25% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
Semi-Annual Report 2016
22
Aberdeen Emerging Markets Debt Local Currency Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Emerging Markets Debt Local Currency Fund, J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM) Global Diversified and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The J.P. Morgan GBI-EM Global Diversified Index is an alternatively weighted index that assigns weightings among countries by limiting the weights of countries with larger debt stocks and redistributes those weights to countries with smaller weights. The index consists of local currency denominated, government debt issued in emerging markets countries including: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Romania, Russia, South Africa, Thailand, and Turkey.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Government Bonds | 75.7% | |||
Government Agencies | 13.0% | |||
Corporate Bonds | 6.5% | |||
Repurchase Agreement | 3.2% | |||
Other assets in excess of liabilities | 1.6% | |||
100.0% |
The following chart summarizes the composition of the Fund’s portfolio, expressed as a percentage of net assets. The industries listed below may include more than one industry group. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Industries | ||||
Oil, Gas & Consumable Fuels | 4.2% | |||
Commercial Banks | 2.3% | |||
Other | 93.5% | |||
100.0% |
Top Holdings* | ||||
Poland Government Bond, Series 0429 04/25/2029 | 4.9% | |||
Cagamas MBS Bhd, Series 4 05/29/2017 | 4.4% | |||
Petrobras Global Finance BV 05/20/2016 | 4.2% | |||
Russian Federal Bond – OFZ, Series 6212 01/19/2028 | 4.1% | |||
Brazil Notas do Tesouro Nacional, Series F 01/01/2025 | 4.0% | |||
India Government Bond 12/10/2020 | 3.5% | |||
Turkey Government Bond, Series 5YR 03/08/2017 | 3.4% | |||
Turkey Government Bond 03/20/2024 | 3.4% | |||
Colombian TES, Series B 08/26/2026 | 3.3% | |||
Peruvian Government International Bond 08/12/2031 | 3.2% | |||
Other | 61.6% | |||
100.0% |
Top Countries | ||||
Brazil | 15.6% | |||
Mexico | 11.2% | |||
Indonesia | 10.0% | |||
Turkey | 10.0% | |||
South Africa | 9.0% | |||
Malaysia | 8.3% | |||
Russia | 7.5% | |||
Poland | 4.9% | |||
Peru | 3.6% | |||
India | 3.5% | |||
Other | 16.4% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
23
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Local Currency Fund
Shares or Principal Amount | Value (US$) | |||||||
CORPORATE BONDS (6.5%) | ||||||||
BRAZIL (6.5%) | ||||||||
Commercial Banks (2.3%) | ||||||||
Banco do Brasil SA (BRL), 9.75%, 07/18/2017 (a) | $ | 965,000 | $ | 262,403 | ||||
Oil, Gas & Consumable Fuels (4.2%) | ||||||||
Petrobras Global Finance BV (USD), 2.24%, 05/20/2016 (b) | 464,000 | 463,652 | ||||||
726,055 | ||||||||
Total Corporate Bonds | 726,055 | |||||||
GOVERNMENT BONDS (75.7%) | ||||||||
BRAZIL (9.1%) | ||||||||
Brazil Notas do Tesouro Nacional | ||||||||
Series B (BRL), 6.00%, 08/15/2020 (c) | 40,000 | 33,182 | ||||||
Series B (BRL), 10.00%, 01/01/2023 | 880,000 | 226,493 | ||||||
Series F (BRL), 10.00%, 01/01/2025 | 1,780,000 | 447,071 | ||||||
Series F (BRL), 10.00%, 01/01/2027 | 450,000 | 112,675 | ||||||
Series B (BRL), 6.00%, 08/15/2040 (c) | 133,000 | 110,720 | ||||||
Series B (BRL), 6.00%, 05/15/2045 (c) | 110,000 | 90,548 | ||||||
1,020,689 | ||||||||
COLOMBIA (3.3%) | ||||||||
Colombian TES, Series B (COP), 7.50%, 08/26/2026 | 1,087,600,000 | 365,678 | ||||||
HUNGARY (2.1%) | ||||||||
Hungary Government Bond | ||||||||
Series 20/B (HUF), 3.50%, 06/24/2020 | 17,000,000 | 66,205 | ||||||
Series 25\B (HUF), 5.50%, 06/24/2025 | 37,610,000 | 163,075 | ||||||
229,280 | ||||||||
INDIA (3.5%) | ||||||||
India Government Bond (INR), 8.12%, 12/10/2020 | 25,600,000 | 395,714 | ||||||
INDONESIA (10.0%) | ||||||||
Indonesia Treasury Bond | ||||||||
Series FR69 (IDR), 7.88%, 04/15/2019 | 2,454,000,000 | 188,711 | ||||||
Series FR59 (IDR), 7.00%, 05/15/2027 | 2,401,000,000 | 171,445 | ||||||
Series FR71 (IDR), 9.00%, 03/15/2029 | 2,393,000,000 | 197,294 | ||||||
Series FR54 (IDR), 9.50%, 07/15/2031 | 2,556,000,000 | 221,191 | ||||||
Series FR68 (IDR), 8.38%, 03/15/2034 | 4,197,000,000 | 333,141 | ||||||
1,111,782 | ||||||||
MALAYSIA (3.9%) | ||||||||
Malaysia Government Bond | ||||||||
Series 0515 (MYR), 3.76%, 03/15/2019 | 140,000 | 36,283 | ||||||
Series 0112 (MYR), 3.42%, 08/15/2022 | 515,000 | 129,258 | ||||||
Series 0310 (MYR), 4.50%, 04/15/2030 | 1,020,000 | 268,378 | ||||||
433,919 | ||||||||
MEXICO (6.6%) | ||||||||
Mexican Bonos | ||||||||
Series M (MXN), 8.00%, 06/11/2020 | 3,080,000 | 198,270 | ||||||
Series M (MXN), 6.50%, 06/10/2021 | 1,320,000 | 80,910 | ||||||
Series M (MXN), 5.75%, 03/05/2026 | 4,340,000 | 250,350 | ||||||
Series M30 (MXN), 8.50%, 11/18/2038 | 675,000 | 48,614 | ||||||
Series M (MXN), 7.75%, 11/13/2042 | 500,000 | 33,648 | ||||||
Mexican Udibonos, Series S (MXN), 4.50%, 11/22/2035 (c) | 1,814,592 | 121,378 | ||||||
733,170 | ||||||||
PERU (3.6%) | ||||||||
Peruvian Government International Bond | ||||||||
(PEN), 5.20%, 09/12/2023 (a) | 165,000 | 48,785 | ||||||
(PEN), 6.95%, 08/12/2031 (a) | 1,125,000 | 354,470 | ||||||
403,255 | ||||||||
POLAND (4.9%) | ||||||||
Poland Government Bond, Series 0429 (PLN), 5.75%, 04/25/2029 | 1,676,000 | 550,009 | ||||||
ROMANIA (2.1%) | ||||||||
Romania Government Bond | ||||||||
Series 5Y (RON), 5.90%, 07/26/2017 | 450,000 | 121,922 | ||||||
Series 15YR (RON), 5.80%, 07/26/2027 | 390,000 | 115,347 | ||||||
237,269 | ||||||||
RUSSIA (5.6%) | ||||||||
Russian Federal Bond — OFZ | ||||||||
Series 6203 (RUB), 6.90%, 08/03/2016 | 10,800,000 | 165,563 | ||||||
Series 6212 (RUB), 7.05%, 01/19/2028 | 33,694,000 | 457,768 | ||||||
623,331 | ||||||||
SOUTH AFRICA (6.9%) | ||||||||
South Africa Government Bond | ||||||||
Series R207 (ZAR), 7.25%, 01/15/2020 | 3,320,000 | 224,781 | ||||||
Series R186 (ZAR), 10.50%, 12/21/2026 | 1,350,000 | 104,592 | ||||||
Series 2030 (ZAR), 8.00%, 01/31/2030 | 2,560,000 | 161,186 | ||||||
Series R213 (ZAR), 7.00%, 02/28/2031 | 1,370,000 | 77,778 | ||||||
Series R209 (ZAR), 6.25%, 03/31/2036 | 4,040,000 | 200,961 | ||||||
769,298 | ||||||||
THAILAND (2.3%) | ||||||||
Thailand Government Bond | ||||||||
Series ILB (THB), 1.20%, 07/14/2021 (a)(c) | 5,381,112 | 151,977 | ||||||
(THB), 3.63%, 06/16/2023 | 3,200,000 | 103,564 | ||||||
255,541 | ||||||||
TURKEY (10.0%) | ||||||||
Turkey Government Bond | ||||||||
Series 5YR (TRY), 9.00%, 03/08/2017 | 1,050,000 | 374,893 | ||||||
(TRY), 9.50%, 01/12/2022 | 805,000 | 293,459 | ||||||
(TRY), 8.80%, 09/27/2023 | 200,000 | 70,515 | ||||||
(TRY), 10.40%, 03/20/2024 | 970,000 | 372,330 | ||||||
1,111,197 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
24
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Local Currency Fund
Shares or Principal Amount | Value (US$) | |||||||
URUGUAY (1.8%) | ||||||||
Uruguay Government International Bond | ||||||||
(UYU), 5.00%, 09/14/2018 (c) | $ | 5,917,092 | $ | 185,689 | ||||
(UYU), 4.25%, 04/05/2027 | 516,279 | 15,061 | ||||||
200,750 | ||||||||
Total Government Bonds | 8,440,882 | |||||||
GOVERNMENT AGENCIES (13.0%) | ||||||||
ARGENTINA (0.0%) | ||||||||
Letras del Banco Central de la Republic Argentina (ARS), 0.00%, 08/31/2016 (d) | 150 | 9 | ||||||
MALAYSIA (4.4%) | ||||||||
Cagamas MBS Bhd, Series 4 (MYR), 3.90%, 05/29/2017 | 1,930,000 | 498,047 | ||||||
MEXICO (4.6%) | ||||||||
Petroleos Mexicanos | ||||||||
(MXN), 9.10%, 01/27/2020 | 3,340,000 | 204,525 | ||||||
(MXN), 7.19%, 09/12/2024 (a) | 1,080,000 | 55,278 | ||||||
Series 13-2 (MXN), 7.19%, 09/12/2024 | 2,800,000 | 143,313 | ||||||
Series 14-2 (MXN), 7.47%, 11/12/2026 | 2,140,000 | 107,659 | ||||||
510,775 | ||||||||
RUSSIA (1.9%) | ||||||||
Russian Railways via RZD Capital PLC (RUB), 8.30%, 04/02/2019 (a) | 14,500,000 | 212,862 | ||||||
SOUTH AFRICA (2.1%) | ||||||||
Eskom Holdings SOC Ltd. | ||||||||
(ZAR), 0.00%, 12/31/2018 (d) | 4,450,000 | 217,985 | ||||||
(ZAR), 0.00%, 08/18/2027 (d) | 930,000 | 14,869 | ||||||
232,854 | ||||||||
Total Government Agencies | 1,454,547 | |||||||
REPURCHASE AGREEMENT (3.2%) | ||||||||
UNITED STATES (3.2%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, | 352,000 | 352,000 | ||||||
Total Repurchase Agreement | 352,000 | |||||||
Total Investments | 10,973,484 | |||||||
Other assets in excess of liabilities—1.6% | 182,917 | |||||||
Net Assets—100.0% | $ | 11,156,401 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(c) | Inflation linked security. |
(d) | Issued with a zero coupon. |
(e) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ARS | Argentine Peso |
BRL | Brazilian Real |
CLP | Chilean Peso |
COP | Colombian Peso |
HUF | Hungarian Forint |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PEN | Peruvian Sol |
PHP | Philippine Peso |
PLN | Polish Zloty |
RON | Romanian Leu |
RUB | New Russian Ruble |
THB | Thai Baht |
TRY | Turkish Lira |
USD | U.S. Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
25
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Local Currency Fund
At April 30, 2016, the Fund’s open forward foreign currency exchange contracts were as follows:
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
Argentine Peso/United States Dollar | ||||||||||||||||||||||||||
11/21/2016 | Citibank | ARS | 1,011,000 | USD | 57,378 | $ | 62,875 | $ | 5,497 | |||||||||||||||||
12/20/2016 | Citibank | ARS | 1,780,000 | USD | 105,007 | 108,708 | 3,701 | |||||||||||||||||||
Brazilian Real/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | BRL | 472,000 | USD | 114,278 | 136,294 | 22,016 | |||||||||||||||||||
05/24/2016 | JPMorgan Chase | BRL | 341,000 | USD | 88,023 | 98,467 | 10,444 | |||||||||||||||||||
Chilean Peso/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | CLP | 80,205,000 | USD | 121,196 | 121,179 | (17 | ) | ||||||||||||||||||
Colombian Peso/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Citibank | COP | 332,611,000 | USD | 96,270 | 116,408 | 20,138 | |||||||||||||||||||
05/24/2016 | Goldman Sachs | COP | 474,841,000 | USD | 154,450 | 166,186 | 11,736 | |||||||||||||||||||
05/24/2016 | JPMorgan Chase | COP | 261,278,000 | USD | 75,395 | 91,443 | 16,048 | |||||||||||||||||||
Hungarian Forint/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Goldman Sachs | HUF | 85,948,000 | USD | 313,347 | 315,290 | 1,943 | |||||||||||||||||||
Indonesian Rupiah/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Citibank | IDR | 1,363,787,000 | USD | 99,004 | 103,109 | 4,105 | |||||||||||||||||||
05/24/2016 | Goldman Sachs | IDR | 1,521,937,000 | USD | 114,967 | 115,066 | 99 | |||||||||||||||||||
05/24/2016 | JPMorgan Chase | IDR | 721,846,000 | USD | 54,266 | 54,575 | 309 | |||||||||||||||||||
Mexican Peso/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | JPMorgan Chase | MXN | 1,951,000 | USD | 111,141 | 112,634 | 1,493 | |||||||||||||||||||
Peruvian Sol/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | PEN | 181,000 | USD | 53,338 | 54,983 | 1,645 | |||||||||||||||||||
Philippine Peso/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Barclays Bank | PHP | 4,611,000 | USD | 96,052 | 98,224 | 2,172 | |||||||||||||||||||
Polish Zloty/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Barclays Bank | PLN | 198,000 | USD | 51,145 | 51,813 | 668 | |||||||||||||||||||
07/14/2016 | JPMorgan Chase | PLN | 2,018,000 | USD | 534,637 | 528,071 | (6,566 | ) | ||||||||||||||||||
Romanian Leu/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | UBS | RON | 565,000 | USD | 142,511 | 144,536 | 2,025 | |||||||||||||||||||
South African Rand/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Citibank | ZAR | 1,465,000 | USD | 94,776 | 101,474 | 6,698 | |||||||||||||||||||
07/14/2016 | UBS | ZAR | 150,000 | USD | 10,027 | 10,390 | 363 | |||||||||||||||||||
Thai Baht/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Goldman Sachs | THB | 718,000 | USD | 20,305 | 20,524 | 219 | |||||||||||||||||||
$ | 2,612,249 | $ | 104,736 |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
26
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Emerging Markets Debt Local Currency Fund
Sale Contracts Settlement Date* | Counterparty | Amount | Amount Sold | Fair Value | Unrealized Depreciation | |||||||||||||||||||||
United States Dollar/Brazilian Real | ||||||||||||||||||||||||||
05/24/2016 | Barclays Bank | USD | 23,923 | BRL | 98,000 | $ | 28,298 | $ | (4,375 | ) | ||||||||||||||||
05/24/2016 | Goldman Sachs | USD | 98,267 | BRL | 363,000 | 104,819 | (6,552 | ) | ||||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 29,528 | BRL | 105,000 | 30,320 | (792 | ) | ||||||||||||||||||
United States Dollar/Colombian Peso | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | USD | 105,525 | COP | 310,191,000 | 108,561 | (3,036 | ) | ||||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 9,671 | COP | 33,517,000 | 11,730 | (2,059 | ) | ||||||||||||||||||
United States Dollar/Hungarian Forint | ||||||||||||||||||||||||||
07/14/2016 | Goldman Sachs | USD | 172,812 | HUF | 47,829,000 | 175,455 | (2,643 | ) | ||||||||||||||||||
07/14/2016 | UBS | USD | 103,817 | HUF | 28,631,000 | 105,029 | (1,212 | ) | ||||||||||||||||||
United States Dollar/Indian Rupee | ||||||||||||||||||||||||||
05/24/2016 | JPMorgan Chase | USD | 185,950 | INR | 12,935,000 | 194,250 | (8,300 | ) | ||||||||||||||||||
United States Dollar/Indonesian Rupiah | ||||||||||||||||||||||||||
05/24/2016 | Citibank | USD | 75,035 | IDR | 1,034,547,000 | 78,217 | (3,182 | ) | ||||||||||||||||||
United States Dollar/Malaysian Ringgit | ||||||||||||||||||||||||||
05/24/2016 | Citibank | USD | 97,204 | MYR | 412,000 | 105,303 | (8,099 | ) | ||||||||||||||||||
United States Dollar/Mexican Peso | ||||||||||||||||||||||||||
07/14/2016 | UBS | USD | 64,645 | MXN | 1,167,000 | 67,372 | (2,727 | ) | ||||||||||||||||||
United States Dollar/New Russian Ruble | ||||||||||||||||||||||||||
05/24/2016 | UBS | USD | 135,817 | RUB | 9,421,000 | 144,677 | (8,860 | ) | ||||||||||||||||||
United States Dollar/Peruvian Sol | ||||||||||||||||||||||||||
05/24/2016 | Barclays Bank | USD | 336,803 | PEN | 1,197,000 | 363,614 | (26,811 | ) | ||||||||||||||||||
United States Dollar/Romanian Leu | ||||||||||||||||||||||||||
07/14/2016 | Barclays Bank | USD | 59,187 | RON | 232,000 | 59,349 | (162 | ) | ||||||||||||||||||
United States Dollar/South African Rand | ||||||||||||||||||||||||||
07/14/2016 | Barclays Bank | USD | 76,353 | ZAR | 1,127,000 | 78,062 | (1,709 | ) | ||||||||||||||||||
United States Dollar/Turkish Lira | ||||||||||||||||||||||||||
07/14/2016 | Barclays Bank | USD | 109,769 | TRY | 317,000 | 111,151 | (1,382 | ) | ||||||||||||||||||
07/14/2016 | Citibank | USD | 57,322 | TRY | 168,000 | 58,907 | (1,585 | ) | ||||||||||||||||||
$ | 1,825,114 | $ | (83,486 | ) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
27
Aberdeen Global Fixed Income Fund (Unaudited)
The Aberdeen Global Fixed Income Fund (Institutional Class shares net of fees) returned 5.58% for the six-month period ended April 30, 2016, versus the 6.09% return for its benchmark, the Barclays Global Aggregate Bond Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Global Income Funds (comprising 66 funds), as measured by Lipper, Inc., was 3.36% for the period.
Global central bank policy continued to dominate markets over the six-month period ended April 30, 2016. The U.S. Federal Reserve (Fed) finally raised its benchmark interest rate by 0.25 percentage points in December 2015, while the European Central Bank (ECB) moved in the other direction, cutting its deposit rate deeper into negative territory to -0.40%. The Bank of Japan (BoJ) also unexpectedly reduced its benchmark interest rate to -0.1% in January 2016. The introduction of a negative interest-rate policy, coupled with turbulent commodity prices, hampered global fixed-income markets, with core government bonds benefiting from investors’ flight to quality. Instability in China’s domestic stock market was also a source of volatility at the beginning of 2016, although market fears of an aggressive slowdown have now (perhaps temporarily, in our opinion) subsided. Oil prices also stabilized somewhat in the second half of February 2016, helping risk assets recoup some of the losses from earlier in the reporting period. Commodity-based currencies such as the Australian dollar, Canadian dollar and Norwegian krona performed well late in the period after being pressured earlier. Meanwhile, the U.S. dollar, which was saw strong performance towards the end of 2015, finished the reporting period with a downturn as market volatility and a dovish shift in the Fed’s monetary policy comments led to market expectations that further interest-rate hikes would be pushed back to a later date. The Japanese yen was a standout global currency performer over the latter half of the reporting period, supported by “risk-off” investor sentiment. Concerns ahead of the European Union (EU) referendum, which will determine whether the UK remains in or withdraws from the EU, put downward pressure on the British sterling, although there was a measure of recovery in April 2016, as market fears of a “Brexit” receded slightly.
During the reporting period, the Fund was positioned with a bias towards credit risk, reflecting our view that investment-grade credit holds significant long-term value across most sectors. This positioning weighed on Fund performance as credit-market spreads generally widened over the period. The Fund’s exposure to the industrials sector was the largest detractor from performance during the period, as commodity price volatility dampened investor risk sentiment within the asset class. This was partially offset by the Fund’s overall allocation to the financial sector and U.S. agency mortgages, as risk-off investor sentiment helped to support U.S. government-backed debt.
The Fund’s interest-rate positioning contributed to performance over the reporting period. An overweight to European peripheral markets (particularly Ireland and Italy) as a spread versus Germany added value as ECB easing helped push spreads tighter. The Fund’s long U.S. position relative to Canada enhanced performance following the Bank of Canada’s decision not to cut its benchmark interest rate at its meeting in January 2016. However, the Fund’s ongoing U.S. short-duration1 position detracted from performance in the second half of the reporting period as the Fed’s dovish monetary policy comments and risk-asset volatility led to a decline in yields in the front end of the U.S. Treasury yield curve.
Our active currency management hindered Fund performance, with the long U.S. dollar position versus the euro and Japanese yen was a detractor as risk-off sentiment bolstered the latter currency. A short Australian dollar position also had a negative impact on Fund performance in March, as a rebound in commodity prices and the release of generally strong economic data led to currency strengthening.
Regarding the use of derivatives in the Fund, we employed bond futures in an effort to achieve more efficient portfolio management. Additionally, we used forward contracts as part of the Fund’s hedging strategy to manage currency exposure. The derivatives positions (forwards and futures) contributed 0.56% to Fund performance for the reporting period.
Despite the dovish tone of recent Fed communications, we still expect a tighter path for U.S. monetary policy than we believe is currently priced into markets. The U.S. labor market continues to improve, and core inflation is accelerating. In the UK, we think that Brexit risks are likely to hang over all UK risk assets until the referendum. While the ECB exceeded expectations of policy easing at its March 2016 meeting, we feel that further action remains probable. The BoJ appears to be set to continue easing to meet its inflation target having now crossed into negative territory, in our opinion. In this environment, we favor higher U.S. breakeven rates2 and the European peripheral markets. We remain cautious towards emerging markets, especially in the foreign exchange space.
Portfolio Management:
Aberdeen Global Fixed Income Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
1 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
2 | The breakeven rate is the difference in yield between an inflation-linked security and a fixed-rate issue of the same maturity. |
Semi-Annual Report 2016
28
Aberdeen Global Fixed Income Fund (Unaudited) (concluded)
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Risk Considerations
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to different accounting and regulatory standards and currency exchange rate, political and economic risks. Fluctuation in currency exchange rates may impact a Fund’s returns more greatly to the extent a Fund does not hedge currency exposure or hedging techniques are unsuccessful. The foregoing risks are enhanced in emerging market countries.
Derivatives are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these risks.
2016 Semi-Annual Report
29
Aberdeen Global Fixed Income Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 5.35% | 2.41% | 0.04% | 5.39% | |||||||||||||
w/SC2 | 0.85% | (1.94% | ) | (0.82% | ) | 5.21% | ||||||||||||
Class C | w/o SC | 5.07% | 1.68% | (0.68% | ) | 5.08% | ||||||||||||
w/SC3 | 4.07% | 0.68% | (0.68% | ) | 5.08% | |||||||||||||
Institutional Service Class4,5 | w/o SC | 5.46% | 2.52% | 0.15% | 3.46% | |||||||||||||
Institutional Class4,6 | w/o SC | 5.58% | 2.76% | 0.34% | 3.57% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | Returns presented for the Fund for periods prior to July 20, 2009 reflect the performance of the predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 4.25% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charges. |
5 | Returns before the first offering of the Institutional Service Class shares (July 20, 2009) are based on the previous performance of Common Class shares of the Predecessor Fund. This performance is substantially similar to what Institutional Service Class shares would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses between the two classes. |
6 | Returns before the first offering of the Institutional Class shares (July 20, 2009) are based on the previous performance of Common Class shares of the Predecessor Fund. This performance is substantially similar to what Institutional Class shares would have produced because both classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses between the two classes. |
Semi-Annual Report 2016
30
Aberdeen Global Fixed Income Fund (Unaudited)
Performance of a $1,000,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment. |
Comparative performance of $1,000,000 invested in Institutional Service Class shares of the Aberdeen Global Fixed Income Fund, the Barclays Global Aggregate Bond Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Barclays Global Aggregate Bond Index is a broad-based index that measures the global investment grade fixed-rate debt markets inclusive of three major components: U.S. Aggregate Bond Index, the Pan-European Aggregate Index, and the Asian-Pacific Aggregate Index.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Government Bonds | 38.5% | |||
U.S. Treasuries | 25.7% | |||
Corporate Bonds | 21.1% | |||
Residential Mortgage-Backed Securities | 5.9% | |||
Commercial Mortgage-Backed Securities | 4.3% | |||
Repurchase Agreement | 1.3% | |||
U.S. Agencies | 1.3% | |||
Municipal Bonds | 1.0% | |||
Asset-Backed Securities | 0.4% | |||
Other assets in excess of liabilities | 0.5% | |||
100.0% |
The following chart summarizes the composition of the Fund’s portfolio, expressed as a percentage of net assets. The industries listed below may include more than one industry group. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Industries | ||||
Commercial Banks | 3.2% | |||
Oil, Gas & Consumable Fuels | 2.6% | |||
Diversified Financial Services | 1.4% | |||
Diversified Telecommunication Services | 1.3% | |||
Energy Equipment & Services | 1.3% | |||
Insurance | 1.3% | |||
Transportation | 1.2% | |||
Media | 0.9% | |||
Miscellaneous Manufacturing | 0.8% | |||
Holding Companies-Diversified Operations | 0.8% | |||
Other | 85.2% | |||
100.0% |
Top Holdings* | ||||
U.S. Treasury Notes 06/30/2016 | 14.1% | |||
United Kingdom Gilt, REGS 09/07/2016 | 5.3% | |||
Italy Buoni Poliennali Del Tesoro 05/01/2020 | 5.2% | |||
U.S. Treasury Notes 03/31/2021 | 5.2% | |||
Japan Government Forty Year Bond 03/20/2055 | 4.9% | |||
Singapore Government Bond 09/01/2020 | 3.1% | |||
U.S. Treasury Inflation Indexed Bond 07/15/2025 | 2.9% | |||
Ireland Government Bond 03/18/2024 | 1.8% | |||
Spain Government Bond 04/30/2025 | 1.5% | |||
United Kingdom Gilt, REGS 07/22/2020 | 1.5% | |||
Other | 54.5% | |||
100.0% |
Top Countries | ||||
United States | 49.7% | |||
United Kingdom | 11.6% | |||
Italy | 6.1% | |||
Japan | 4.9% | |||
France | 3.8% | |||
Germany | 3.4% | |||
Canada | 3.3% | |||
Singapore | 3.1% | |||
Republic of Ireland | 3.0% | |||
Australia | 2.6% | |||
Other | 8.5% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
2016 Semi-Annual Report
31
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
Shares or Principal Amount | Value (US$) | |||||||
ASSET-BACKED SECURITIES (0.4%) | ||||||||
UNITED STATES (0.4%) | ||||||||
Dominos Pizza Master Issuer LLC, Series 2012-1A, Class A2 (USD), 5.22%, 01/25/2042 (a) | $ | 59,012 | $ | 60,800 | ||||
Total Asset-Backed Securities | 60,800 | |||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (4.3%) |
| |||||||
UNITED STATES (4.3%) | ||||||||
Americold LLC Trust, Series 2010-ARTA, Class A2FL (USD), 1.94%, 01/14/2029 (a)(b) | 86,207 | 86,964 | ||||||
Commercial Mortgage Pass Through Certificates, Series 2007-C9, Class AMFL (USD), 1.08%, 12/10/2049 (a)(b) | 10,000 | 9,762 | ||||||
Federal Home Loan Mortgage Corp. | ||||||||
Series 2510, Class ND (USD), 6.00%, 10/15/2032 | 27,410 | 31,017 | ||||||
Series 4462, Class VB (USD), 3.00%, 04/15/2035 | 35,000 | 36,407 | ||||||
Series 4405, Class CE (USD), 2.50%, 09/15/2039 | 32,717 | 33,257 | ||||||
Series 4384, Class LB (USD), 3.50%, 08/15/2043 | 40,000 | 42,866 | ||||||
Series 2015-37, Class PA (USD), 3.00%, 06/25/2044 | 32,900 | 34,220 | ||||||
Federal National Mortgage Association | ||||||||
Series 2015-16, Class JA (USD), 4.00%, 08/25/2040 | 32,214 | 34,467 | ||||||
Series 2015-72, Class GA (USD), 3.00%, 12/25/2042 | 34,032 | 35,473 | ||||||
FREMF Mortgage Trust, Series 2011-K10, Class B (USD), 4.79%, 11/25/2049 (a)(b) | 50,000 | 53,906 | ||||||
GS Mortgage Securities Trust, Series 2015-GC30, Class AS (USD), 3.78%, 05/10/2050 | 42,000 | 44,262 | ||||||
JP Morgan Mortgage Trust, Series 14-IVR3, Class 2A1 (USD), 3.00%, 09/25/2044 (a)(b) | 50,235 | 50,537 | ||||||
SFAVE Commercial Mortgage Securities Trust, Series 2015-5AVE, Class D (USD), 4.38%, 01/05/2043 (a)(b) | 138,000 | 106,163 | ||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2003-N, Class 1A1 (USD), 2.68%, 12/25/2033 (b) | 9,337 | 9,237 | ||||||
608,538 | ||||||||
Total Commercial Mortgage-Backed Securities | 608,538 | |||||||
RESIDENTIAL MORTGAGE-BACKED SECURITIES (5.9%) |
| |||||||
UNITED STATES (5.9%) | ||||||||
BCAP LLC Trust | ||||||||
Series 2009-RR6, Class 3A1 (USD), 2.93%, 12/26/2037 (a)(b) | 25,168 | 24,998 | ||||||
Series 2009-RR2, Class A1 (USD), 2.87%, 01/21/2038 (a)(b) | 8,456 | 8,454 | ||||||
Federal Home Loan Mortgage Corp. | ||||||||
Series 4364, Class VB, CMO (USD), 4.00%, 07/15/2032 | 30,000 | 33,152 | ||||||
Pool # C91819 (USD), 3.00%, 04/01/2035 | 27,470 | 28,546 | ||||||
Pool # C91860 (USD), 4.00%, 12/01/2035 | 29,324 | 31,562 | ||||||
Pool # G07683 (USD), 4.00%, 03/01/2044 | 42,007 | 45,049 | ||||||
Pool # 60251 (USD), 3.50%, 10/01/2045 | 34,460 | 36,356 | ||||||
Pool # G08676 (USD), 3.50%, 11/01/2045 | 34,189 | 35,843 | ||||||
Pool # G08677 (USD), 4.00%, 11/01/2045 | 29,060 | 31,066 | ||||||
Federal National Mortgage Association | ||||||||
Pool # AL8001 (USD), 3.50%, 02/01/2031 | 29,294 | 31,076 | ||||||
Series 2013-20, Class DL (USD), 4.00%, 03/25/2033 | 24,522 | 26,726 | ||||||
Series 2013-20, Class MC (USD), | 30,579 | 33,450 | ||||||
Series 2013-43, Class MB (USD), | 16,109 | 17,144 | ||||||
Pool # AL6270 (USD), 3.50%, 10/01/2034 | 29,597 | 31,430 | ||||||
Pool # MA2480 (USD), 4.00%, 12/01/2035 | 29,105 | 31,338 | ||||||
Pool # 889050 (USD), 6.00%, 05/01/2037 | 5,905 | 6,816 | ||||||
Pool # 929187 (USD), 5.50%, 03/01/2038 | 5,570 | 6,302 | ||||||
Pool # AL7293 (USD), 5.50%, 09/01/2038 | 25,086 | 28,370 | ||||||
Pool # 995228 (USD), 6.50%, 11/01/2038 | 10,888 | 12,883 | ||||||
Pool # AI0108 (USD), 5.00%, 04/01/2041 | 13,036 | 14,737 | ||||||
Pool # AJ1422 (USD), 5.00%, 09/01/2041 | 13,673 | 15,177 | ||||||
Series 2012-110, Class CA, CMO (USD), | 33,947 | 34,760 | ||||||
Pool # AB9944 (USD), 3.00%, 07/01/2043 | 32,648 | 33,711 | ||||||
Pool # AS3935 (USD), 3.50%, 12/01/2044 | 45,101 | 47,622 | ||||||
Pool # AS4073 (USD), 4.00%, 12/01/2044 | 42,994 | 46,540 | ||||||
Pool # AY8866 (USD), 3.50%, 01/01/2046 | 34,850 | 36,544 | ||||||
Government National Mortgage Association, Series 2015-132, Class V, CMO (USD), | 43,963 | 46,567 | ||||||
JP Morgan Re-Remic | ||||||||
Series 2009-8, Class A1 (USD), | 6,588 | 6,591 | ||||||
Series 2009-7, Class 2A1 (USD), | 23,231 | 23,548 | ||||||
Series 2009-7, Class 17A1 (USD), | 30,925 | 29,601 | ||||||
835,959 | ||||||||
Total Residential Mortgage-Backed Securities | 835,959 | |||||||
CORPORATE BONDS (21.1%) | ||||||||
AUSTRALIA (1.4%) | ||||||||
Commercial Banks (0.7%) | ||||||||
Suncorp-Metway Ltd. (USD), 2.10%, 05/03/2019 (a) | 20,000 | 20,118 | ||||||
Westpac Banking Corp. (USD), 1.55%, 05/25/2018 | 80,000 | 80,054 | ||||||
100,172 | ||||||||
Energy Equipment & Services (0.7%) | ||||||||
APT Pipelines Ltd. (USD), 4.20%, 03/23/2025 (a) | 98,000 | 97,499 | ||||||
197,671 | ||||||||
CANADA (2.5%) | ||||||||
Airlines (0.3%) | ||||||||
Air Canada (CAD), 7.63%, 10/01/2019 (a) | 50,000 | 42,042 | ||||||
Commercial Banks (1.2%) |
| |||||||
Bank of Nova Scotia (CAD), 2.87%, 06/04/2021 | 100,000 | 83,316 | ||||||
National Bank of Canada (CAD), 2.40%, 10/28/2019 | 100,000 | 81,802 | ||||||
165,118 | ||||||||
Diversified Telecommunication Services (0.2%) |
| |||||||
Rogers Communications, Inc. (CAD), 6.11%, 08/25/2040 | 25,000 | 24,490 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
32
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
Shares or Principal Amount | Value (US$) | |||||||
Electric Utilities (0.1%) | ||||||||
Hydro One, Inc. (CAD), 5.49%, 07/16/2040 | $ | 9,000 | $ | 9,382 | ||||
Media (0.1%) | ||||||||
Shaw Communications, Inc. (CAD), 6.75%, 11/09/2039 | 10,000 | 9,788 | ||||||
Oil, Gas & Consumable Fuels (0.5%) | ||||||||
Canadian Natural Resources Ltd. (USD), 1.75%, 01/15/2018 | 81,000 | 79,635 | ||||||
Transportation (0.1%) | ||||||||
Canadian Pacific Railway Co. (USD), 4.80%, 08/01/2045 | 21,000 | 22,883 | ||||||
353,338 | ||||||||
FRANCE (1.3%) |
| |||||||
Commercial Banks (0.5%) | ||||||||
Societe Generale SA (EUR), 9.38%, 09/04/2019 (a)(b)(c) | 50,000 | 68,918 | ||||||
Government Development Banks (0.8%) | ||||||||
Agence Francaise de Developpement (EUR), 4.62%, 07/20/2016 (a)(b)(c) | 100,000 | 115,220 | ||||||
184,138 | ||||||||
HONG KONG (0.8%) |
| |||||||
Holding Companies-Diversified Operations (0.8%) | ||||||||
Hutchison Whampoa Europe Finance 13 Ltd. (EUR), 3.75%, 05/10/2018 (a)(b)(c) | 100,000 | 117,368 | ||||||
LUXEMBOURG (0.8%) | ||||||||
Miscellaneous Manufacturing (0.8%) | ||||||||
Pentair Finance SA (EUR), 2.45%, 09/17/2019 | 100,000 | 118,016 | ||||||
MEXICO (0.5%) | ||||||||
Oil, Gas & Consumable Fuels (0.5%) | ||||||||
Petroleos Mexicanos (USD), 5.50%, 01/21/2021 | 60,000 | 63,000 | ||||||
NETHERLANDS (1.8%) | ||||||||
Diversified Telecommunication Services (0.9%) | ||||||||
Bharti Airtel International Netherlands BV (EUR), 3.38%, 05/20/2021 (a) | 100,000 | 123,150 | ||||||
Pharmaceutical (0.1%) | ||||||||
Mylan (USD), 3.00%, 12/15/2018 (a) | 13,000 | 13,224 | ||||||
Real Estate (0.8%) | ||||||||
Vonovia Finance BV (EUR), 4.00%, 12/17/2021 (a)(b)(c) | 100,000 | 115,622 | ||||||
251,996 | ||||||||
UNITED KINGDOM (2.2%) |
| |||||||
Diversified Telecommunication Services (0.1%) | ||||||||
British Telecommunications PLC (USD), 5.95%, 01/15/2018 | 20,000 | 21,542 | ||||||
Insurance (1.1%) | ||||||||
Scottish Widows Ltd. (GBP), 5.50%, 06/16/2023 (a) | 100,000 | 150,697 | ||||||
Oil, Gas & Consumable Fuels (1.0%) | ||||||||
KCA Deutag UK Finance PLC (USD), 7.25%, 05/15/2021 (a) | 200,000 | 136,000 | ||||||
308,239 | ||||||||
UNITED STATES (9.8%) | ||||||||
Aerospace & Defense (0.6%) | ||||||||
United Technologies Corp. (USD), 1.78%, 05/04/2018 (d) | 86,000 | 86,550 | ||||||
Auto Manufacturers (0.2%) | ||||||||
Toyota Motor Credit Corp. (USD), 1.90%, 04/08/2021 | 25,000 | 25,022 | ||||||
Beverages (0.4%) | ||||||||
Anheuser-Busch InBev Finance, Inc. | ||||||||
(USD), 3.65%, 02/01/2026 | 29,000 | 30,569 | ||||||
(USD), 4.90%, 02/01/2046 | 17,000 | 19,279 | ||||||
49,848 | ||||||||
COMMERCIAL BANKS (0.8%) | ||||||||
JPMorgan Chase & Co., Series V (USD), 5.00%, 07/01/2019 (b)(c) | 70,000 | 67,382 | ||||||
Wells Fargo & Co. (USD), 4.10%, 06/03/2026 | 40,000 | 42,079 | ||||||
109,461 | ||||||||
Computers & Peripherals (0.6%) | ||||||||
Apple, Inc. (USD), 2.25%, 02/23/2021 | 22,000 | 22,489 | ||||||
Hewlett Packard Enterprise Co. (USD), 3.60%, 10/15/2020 (a) | 35,000 | 36,305 | ||||||
Seagate HDD Cayman (USD), 4.88%, 06/01/2027 (a) | 45,000 | 31,636 | ||||||
90,430 | ||||||||
Diversified Financial Services (1.4%) | ||||||||
HSBC Finance Corp. (USD), 6.68%, 01/15/2021 | 100,000 | 114,891 | ||||||
Legg Mason, Inc. (USD), 5.63%, 01/15/2044 (e) | 20,000 | 19,919 | ||||||
National Rural Utilities Cooperative Finance Corp. (USD), 4.75%, 04/30/2043 (b) | 65,000 | 62,075 | ||||||
196,885 | ||||||||
Diversified Telecommunication Services (0.1%) | ||||||||
Verizon Communications, Inc. (USD), 5.01%, 08/21/2054 | 20,000 | 20,541 | ||||||
Electric Utilities (0.6%) | ||||||||
Exelon Generation Co. LLC (USD), 2.95%, 01/15/2020 | 46,000 | 46,694 | ||||||
Ipalco Enterprises, Inc. (USD), 5.00%, 05/01/2018 | 35,000 | 36,707 | ||||||
83,401 | ||||||||
Energy Equipment & Services (0.6%) | ||||||||
Columbia Pipeline Group, Inc. (USD), 2.45%, 06/01/2018 (a) | 18,000 | 17,978 | ||||||
Energy Transfer Partners LP (USD), 5.20%, 02/01/2022 | 50,000 | 50,514 | ||||||
Kinder Morgan Energy Partners LP (USD), 3.50%, 03/01/2021 | 22,000 | 21,556 | ||||||
90,048 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
33
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
Shares or Principal Amount | Value (US$) | |||||||
Food Products (0.2%) | ||||||||
Kraft Heinz Foods Co. (USD), 6.75%, 03/15/2032 | $ | 24,000 | $ | 29,712 | ||||
Healthcare Providers & Services (0.3%) | ||||||||
Quest Diagnostics, Inc. (USD), 4.70%, 03/30/2045 | 48,000 | 49,060 | ||||||
Insurance (0.2%) | ||||||||
American International Group, Inc. (USD), 4.38%, 01/15/2055 | 30,000 | 26,962 | ||||||
Leisure Time (0.5%) | ||||||||
Harley-Davidson, Inc. | ||||||||
(USD), 3.50%, 07/28/2025 | 37,000 | 38,785 | ||||||
(USD), 4.63%, 07/28/2045 | 29,000 | 30,630 | ||||||
69,415 | ||||||||
Media (0.8%) | ||||||||
21st Century Fox America, Inc. (USD), 6.40%, 12/15/2035 | 10,000 | 12,605 | ||||||
Cablevision Systems Corp. (USD), 8.00%, 04/15/2020 | 25,000 | 25,050 | ||||||
CCO Safari II LLC (USD), 4.46%, 07/23/2022 (a) | 20,000 | 21,265 | ||||||
Comcast Corp. (USD), 6.95%, 08/15/2037 | 35,000 | 49,879 | ||||||
108,799 | ||||||||
Oil, Gas & Consumable Fuels (0.6%) | ||||||||
Blue Racer Midstream LLC / Blue Racer Finance Corp. (USD), 6.13%, 11/15/2022 (a) | 15,000 | 13,275 | ||||||
Marathon Petroleum Corp. (USD), 4.75%, 09/15/2044 (e) | 80,000 | 66,866 | ||||||
80,141 | ||||||||
Paper & Forest Products (0.1%) | ||||||||
International Paper Co. (USD), 5.15%, 05/15/2046 | 12,000 | 12,868 | ||||||
Retail (0.5%) | ||||||||
CVS Health Corp. (USD), 3.50%, 07/20/2022 | 43,000 | 45,778 | ||||||
Wal-Mart Stores, Inc. (USD), 4.75%, 10/02/2043 | 21,000 | 24,914 | ||||||
70,692 | ||||||||
Software (0.2%) | ||||||||
Fidelity National Information Services, Inc. (USD), 3.63%, 10/15/2020 | 23,000 | 24,064 | ||||||
Transportation (1.1%) | ||||||||
Burlington Northern Santa Fe LLC (USD), 4.70%, 09/01/2045 | 21,000 | 23,952 | ||||||
FedEx Corp. (USD), 4.55%, 04/01/2046 | 19,000 | 20,235 | ||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. (USD), 3.38%, 02/01/2022 (a) | 116,000 | 116,677 | ||||||
160,864 | ||||||||
1,384,763 | ||||||||
Total Corporate Bonds | 2,978,529 | |||||||
MUNICIPAL BONDS (1.0%) | ||||||||
UNITED STATES (1.0%) | ||||||||
GEORGIA (0.5%) | ||||||||
Municipal Electric Authority of Georgia Revenue Bonds (Build America Bonds) (USD), 6.64%, 04/01/2057 | 55,000 | 70,532 | ||||||
ILLINOIS (0.5%) | ||||||||
Chicago Transit Authority Sales Tax Receipts Revenue Bonds (Build America Bonds), Series B (USD), 6.20%, 12/01/2040 | 55,000 | 63,717 | ||||||
134,249 | ||||||||
Total Municipal Bonds | 134,249 | |||||||
GOVERNMENT BONDS (38.5%) | ||||||||
AUSTRALIA (1.2%) | ||||||||
Australia Government Bond (AUD), 1.75%, 11/21/2020 (a) | 233,000 | 175,240 | ||||||
BELGIUM (0.9%) | ||||||||
Belgium Government Bond | ||||||||
Series 68 (EUR), 2.25%, 06/22/2023 (a) | 60,000 | 78,899 | ||||||
Series 71 (EUR), 3.75%, 06/22/2045 (a) | 30,000 | 50,769 | ||||||
129,668 | ||||||||
CANADA (0.8%) | ||||||||
Canadian Government Bond (CAD), 5.00%, 06/01/2037 | 96,000 | 114,758 | ||||||
FRANCE (2.5%) | ||||||||
France Government Bond OAT | ||||||||
(EUR), 0.00%, 05/25/2020 (a) | 39,000 | 45,036 | ||||||
(EUR), 0.50%, 05/25/2025 (a) | 70,000 | 80,201 | ||||||
REGS (EUR), 1.50%, 05/25/2031 (a) | 87,000 | 104,620 | ||||||
(EUR), 3.25%, 05/25/2045 (a) | 75,000 | 117,613 | ||||||
347,470 | ||||||||
GERMANY (3.4%) | ||||||||
Bundesobligation (EUR), 1.00%, 02/22/2019 (a) | 60,000 | 71,552 | ||||||
Bundesrepublik Deutschland | ||||||||
Series 2008 (EUR), 4.25%, 07/04/2018 (a) | 90,000 | 113,685 | ||||||
(EUR), 0.50%, 02/15/2025 (a) | 161,000 | 189,940 | ||||||
Series 00 (EUR), 5.50%, 01/04/2031 (a) | 24,000 | 46,347 | ||||||
(EUR), 2.50%, 08/15/2046 (a) | 42,000 | 66,441 | ||||||
487,965 | ||||||||
ITALY (6.1%) | ||||||||
Italy Buoni Poliennali Del Tesoro | ||||||||
(EUR), 0.70%, 05/01/2020 | 636,000 | 740,140 | ||||||
(EUR), 1.65%, 03/01/2032 (a) | 87,000 | 95,306 | ||||||
(EUR), 3.25%, 09/01/2046 (a) | 20,000 | 25,934 | ||||||
861,380 | ||||||||
JAPAN (4.9%) | ||||||||
Japan Government Forty Year Bond (JPY), 1.40%, 03/20/2055 | 54,350,000 | 693,141 | ||||||
MEXICO (0.3%) | ||||||||
Mexican Bonos (MXN), 10.00%, 12/05/2024 | 593,500 | 44,460 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
34
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
Shares or Principal Amount | Value (US$) | |||||||
NETHERLANDS (0.6%) | ||||||||
Netherlands Government Bond (EUR), 1.75%, 07/15/2023 (a) | $ | 67,000 | $ | 85,819 | ||||
REPUBLIC OF IRELAND (3.0%) | ||||||||
Ireland Government Bond | ||||||||
(EUR), 3.40%, 03/18/2024 (a) | 178,000 | 245,456 | ||||||
(EUR), 5.40%, 03/13/2025 | 109,000 | 172,656 | ||||||
418,112 | ||||||||
SINGAPORE (3.1%) | ||||||||
Singapore Government Bond (SGD), 3.25%, 09/01/2020 | 540,000 | 432,249 | ||||||
SPAIN (1.6%) | ||||||||
Spain Government Bond | ||||||||
(EUR), 1.60%, 04/30/2025 (a) | 184,000 | 213,333 | ||||||
(EUR), 5.15%, 10/31/2044 (a) | 11,000 | 18,530 | ||||||
231,863 | ||||||||
SUPRANATIONAL (0.7%) | ||||||||
European Investment Bank (USD), 3.25%, 01/29/2024 | 85,000 | 93,490 | ||||||
UNITED KINGDOM (9.4%) | ||||||||
United Kingdom Gilt | ||||||||
REGS (GBP), 4.00%, 09/07/2016 (a) | 507,000 | 749,880 | ||||||
REGS (GBP), 2.00%, 07/22/2020 (a) | 139,000 | 212,425 | ||||||
(GBP), 4.25%, 06/07/2032 (a) | 70,000 | 132,084 | ||||||
REGS (GBP), 4.75%, 12/07/2038 (a) | 34,000 | 70,682 | ||||||
United Kingdom Treasury Gilt (GBP), 4.25%, 12/07/2049 (a) | 75,000 | 158,752 | ||||||
1,323,823 | ||||||||
Total Government Bonds | 5,439,438 | |||||||
U.S. AGENCIES (1.3%) | ||||||||
UNITED STATES (1.3%) | ||||||||
Federal Home Loan Mortgage Corp. | ||||||||
(USD), 3.00%, 07/01/2030 | 32,162 | 33,782 | ||||||
(USD), 3.50%, 01/01/2046 | 29,633 | 31,164 | ||||||
(USD), 4.00%, 03/01/2046 | 29,872 | 31,933 | ||||||
Federal National Mortgage Association | ||||||||
(USD), 3.00%, 01/01/2031 | 19,715 | 20,658 | ||||||
(USD), 3.50%, 04/01/2046 | 25,000 | 26,207 | ||||||
Government National Mortgage Association (USD), 4.50%, 12/15/2045 | 29,465 | 32,305 | ||||||
176,049 | ||||||||
Total U.S. Agencies | 176,049 | |||||||
U.S. TREASURIES (25.7%) | ||||||||
UNITED STATES (25.7%) | ||||||||
U.S. Treasury Bonds | ||||||||
(USD), 4.50%, 02/15/2036 | 155,000 | 210,867 | ||||||
(USD), 2.50%, 02/15/2045 | 8,600 | 8,308 | ||||||
(USD), 2.88%, 08/15/2045 | 45,000 | 46,953 | ||||||
U.S. Treasury Inflation Indexed Bond (USD), 0.38%, 07/15/2025 (f) | 399,932 | 410,696 | ||||||
U.S. Treasury Notes | ||||||||
(USD), 0.50%, 06/30/2016 | 1,985,000 | 1,985,750 | ||||||
(USD), 0.88%, 10/15/2018 | 16,600 | 16,609 | ||||||
(USD), 1.38%, 08/31/2020 | 28,100 | 28,295 | ||||||
(USD), 1.25%, 03/31/2021 | 730,000 | 728,888 | ||||||
(USD), 1.75%, 09/30/2022 | 18,000 | 18,228 | ||||||
(USD), 2.13%, 05/15/2025 | 172,000 | 176,858 | ||||||
3,631,452 | ||||||||
Total U.S. Treasuries | 3,631,452 | |||||||
REPURCHASE AGREEMENT (1.3%) | ||||||||
UNITED STATES (1.3%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $184,000 collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $191,706 | 184,000 | 184,000 | ||||||
Total Repurchase Agreement | 184,000 | |||||||
Total Investments |
| 14,049,014 | ||||||
Other assets in excess of liabilities—0.5% | 73,278 | |||||||
Net Assets—100.0% | $ | 14,122,292 |
(a) | Denotes a security issued under Regulation S or Rule 144A. |
(b) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(c) | Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely. |
(d) | Indicates a stepped coupon bond. This bond was issued with a low coupon that gradually increases over the life of the bond. |
(e) | The Fund’s adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. Illiquid securities held by the Fund represent 0.61% of net assets as of April 30, 2016. |
(f) | Inflation linked security. |
(g) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
AUD | Australian Dollar |
CAD | Canadian Dollar |
CHF | Swiss Franc |
CZK | Czech Koruna |
DKK | Danish Krone |
EUR | Euro Currency |
GBP | British Pound Sterling |
HUF | Hungarian Forint |
JPY | Japanese Yen |
KRW | South Korean Won |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PLN | Polish Zloty |
SEK | Swedish Krona |
SGD | Singapore Dollar |
USD | U.S. Dollar |
ZAR | South African Rand |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
35
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
At April 30, 2016, the Fund held the following futures contracts:
Futures Contracts | Counterparty | Number of Contracts Long (Short) | Expiration Date | Unrealized Appreciation/ (Depreciation) | ||||||||||
Euro BTP Futures | UBS | 2 | 06/08/2016 | $ | (988 | ) | ||||||||
Euro Bund Futures | UBS | (5 | ) | 06/08/2016 | 9,153 | |||||||||
Euro OAT Futures | UBS | 2 | 06/08/2016 | (5,454 | ) | |||||||||
United States Treasury Note 6%-2 year | UBS | 4 | 06/30/2016 | (884 | ) | |||||||||
United States Treasury Note 6%-5 year | UBS | 2 | 06/30/2016 | (239 | ) | |||||||||
United States Treasury Note 6%-5 year | UBS | (11 | ) | 06/30/2016 | (1,846 | ) | ||||||||
United States Treasury Note 6%-10 year | UBS | (4 | ) | 06/21/2016 | 2,584 | |||||||||
United States Treasury Note 6%-Long Bond | UBS | (1 | ) | 06/21/2016 | 3,552 | |||||||||
United States Treasury Note 6%-30 year | UBS | 1 | 06/21/2016 | (3,565 | ) | |||||||||
United States Treasury Note 6%-Ultra Long | UBS | 3 | 06/21/2016 | (1,366 | ) | |||||||||
$ | 947 |
At April 30, 2016, the Fund’s open forward foreign currency exchange contracts were as follows:
Purchase Contracts Settlement Date* | Counterparty | Amount Purchased | Amount Sold | Fair Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
British Pound/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Royal Bank Of Canada | GBP | 15,000 | USD | 21,542 | $ | 21,922 | $ | 380 | |||||||||||||||||
Crech Koruna/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | UBS | CZK | 332,000 | USD | 14,016 | 14,083 | 67 | |||||||||||||||||||
Danish Krone/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | UBS | DKK | 277,000 | USD | 42,478 | 42,715 | 237 | |||||||||||||||||||
Euro/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Citibank | EUR | 151,000 | USD | 172,223 | 173,283 | 1,060 | |||||||||||||||||||
07/14/2016 | UBS | EUR | 19,000 | USD | 21,482 | 21,804 | 322 | |||||||||||||||||||
Japanese Yen/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Citibank | JPY | 199,245,000 | USD | 1,850,618 | 1,876,501 | 25,883 | |||||||||||||||||||
Malaysian Ringgit/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | Goldman Sachs | MYR | 140,000 | USD | 33,047 | 35,783 | 2,736 | |||||||||||||||||||
Mexican Peso/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Citibank | MXN | 6,084,000 | USD | 348,428 | 351,236 | 2,808 | |||||||||||||||||||
Norwegian Krone/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Royal Bank Of Canada | NOK | 206,000 | USD | 24,711 | 25,577 | 866 | |||||||||||||||||||
Polish Zloty/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Royal Bank Of Canada | PLN | 115,000 | USD | 30,361 | 30,093 | (268 | ) | ||||||||||||||||||
South African Rand/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Deutsche Bank | ZAR | 420,000 | USD | 27,047 | 29,091 | 2,044 | |||||||||||||||||||
South Korean Won/United States Dollar | ||||||||||||||||||||||||||
05/24/2016 | JPMorgan Chase | KRW | 204,370,000 | USD | 166,155 | 179,379 | 13,224 | |||||||||||||||||||
Swedish Krona/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | Deutsche Bank | SEK | 1,691,000 | USD | 208,022 | 211,130 | 3,108 | |||||||||||||||||||
Swiss Franc/United States Dollar | ||||||||||||||||||||||||||
07/14/2016 | JPMorgan Chase | CHF | 102,000 | USD | 107,257 | 106,668 | (589 | ) | ||||||||||||||||||
$ | 3,119,265 | $ | 51,878 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
36
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Global Fixed Income Fund
Sale Contracts Settlement Date* | Counterparty | Amount | Amount Sold | Fair Value | Unrealized Depreciation | |||||||||||||||||||||
United States Dollar/Australian Dollar 07/14/2016 | Barclays Bank | USD | 414,217 | AUD | 554,000 | $ | 419,980 | $ | (5,763 | ) | ||||||||||||||||
United States Dollar/British Pound 07/14/2016 | Deutsche Bank | USD | 417,318 | GBP | 296,000 | 432,587 | (15,269 | ) | ||||||||||||||||||
07/14/2016 | Royal Bank Of Canada | USD | 279,410 | GBP | 197,000 | 287,904 | (8,494 | ) | ||||||||||||||||||
United States Dollar/Canadian Dollar 07/14/2016 | Goldman Sachs | USD | 17,481 | CAD | 23,000 | 18,332 | (851 | ) | ||||||||||||||||||
United States Dollar/Euro 07/14/2016 | UBS | USD | 42,085 | EUR | 37,000 | 42,460 | (375 | ) | ||||||||||||||||||
United States Dollar/Hungarian Forint 07/14/2016 | UBS | USD | 137,557 | HUF | 37,782,000 | 138,599 | (1,042 | ) | ||||||||||||||||||
United States Dollar/Japanese Yen 07/14/2016 | Royal Bank Of Canada | USD | 32,776 | JPY | 3,541,000 | 33,349 | (573 | ) | ||||||||||||||||||
United States Dollar/Mexican Peso 07/14/2016 | Royal Bank Of Canada | USD | 200,260 | MXN | 3,613,000 | 208,583 | (8,323 | ) | ||||||||||||||||||
United States Dollar/New Zealand Dollar 07/14/2016 | UBS | USD | 111,949 | NZD | 166,000 | 115,475 | (3,526 | ) | ||||||||||||||||||
United States Dollar/Singapore Dollar 07/14/2016 | Deutsche Bank | USD | 398,657 | SGD | 540,000 | 401,033 | (2,376 | ) | ||||||||||||||||||
$ | 2,098,302 | $ | (46,592 | ) |
* | Certain contracts with different trade dates and like characteristics have been shown net. |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
37
Aberdeen Tax-Free Income Fund (Unaudited)
The Aberdeen Tax-Free Income Fund (Institutional Class shares net of fees) returned 2.08% for the six-month period ended April 30, 2016, versus the 3.55% return of its benchmark, the Barclays Municipal Bond Index. For broader comparison, the average return of the Fund’s Morningstar peer category of General & Insured Municipal Debt Funds (consisting of 261 funds) was 3.60% for the period.
The U.S. municipal bond market experienced strong positive performance over the six-month period ended April 30, 2016. The benchmark Barclays Municipal Bond Index posted a gain in each month of the period, continuing a string of 10 consecutive months of positive returns. Municipal bond funds saw positive inflows throughout the reporting period, while the total new supply of municipal bonds declined each month when compared to the same period a year earlier. This supply/demand imbalance contributed to the strong performance of the municipal bond market during the period. The decline in intermediate- and long-term U.S. Treasury yields over the period also had a positive impact on the sector’s performance.
The municipal market appeared to be immune to the volatility in commodities over the reporting period as oil prices declined steadily through mid-February 2016, and then rose sharply through the end of the period. The market also shrugged off several events that caused turmoil in other financial markets, including the first increases in the Federal Reserve’s federal funds and discount rates in nearly 10 years, and the relative weakness in U.S. economic activity in the first quarter of 2016. The continued deterioration of the fiscal situation in Puerto Rico, including several payment defaults, the state government budget stalemates in Illinois and Pennsylvania, and the weakness in municipal revenues in oil-producing states did not have a significant impact on the municipal market during the period.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) expanded by 1.4% in the fourth quarter of 2015, but subsequently decelerated to a 0.5% rate in the first quarter of 2016. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are a detractor from GDP), offsetting the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the six-month reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate1 rose steadily for most of the reporting period before dipping slightly in April, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
The Fund was positioned with a shorter duration2 relative to that of its benchmark, the Barclays Municipal Bond Index, during the reporting period. Interest rates declined over the period, thereby bolstering bond prices. Consequently, the Fund’s relatively short duration position hindered performance over the period.
The Fund’s overweight allocation to pre-refunded bonds versus the benchmark also detracted from performance for the reporting period. Issuers of pre-refunded bonds post U.S. Treasury securities as collateral for repayment. While this reduces the risk for these bonds, during stretches of increased investor risk appetite, similar to the market environment over the reporting period, these securities historically have underperformed the overall municipal bond market.
On the positive side, Fund performance benefited from the overweight exposure to the electric power utility sector and an underweight position in special tax revenue-supported bonds relative to the Fund’s benchmark.
The Fund did not employ any derivatives during the six-month reporting period.
We made few changes to the Fund during the period. Turnover was approximately 2.5% and comprised the use of proceeds from maturing issues and from new investment funds to purchase higher-yielding bonds with intermediate- and longer-term maturities.
We believe that the technical backdrop in the municipal market remains strong. New-issue supply remains muted and investors continue to allocate new money into the sector. Credit fundamentals have improved since the recession of 2007-2009, but revenue growth has slowed as sales tax receipts and state income tax collections are not growing at the same rate as earlier in the economic recovery. States that are reliant on taxes based on oil and gas production are beginning to experience financial stress as they try to balance budgets on the lower revenues. States that rely on income taxes on high-income citizens, such as California, are also seeing slower revenue growth, in our view. States and local governments that have not addressed their pension funding shortfalls may find it more difficult to resolve their problems if the economy moves into a slower growth phase.
The U.S. Congress appears poised to approve a legislative framework for allowing the Commonwealth of Puerto Rico and its creditors to begin a bankruptcy-like resolution to the Commonwealth’s excessive debt load and payment defaults. However, the resolution may take several years to implement and the economy of Puerto Rico most likely will continue to struggle, in our view.
Portfolio Management:
Aberdeen North American Fixed Income Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be
1 | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
2 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
Semi-Annual Report 2016
38
Aberdeen Tax-Free Income Fund (Unaudited) (concluded)
worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
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Risk Considerations
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). Municipal securities can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities.
Municipal securities can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities.
Derivatives are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these risks.
2016 Semi-Annual Report
39
Aberdeen Tax-Free Income Fund (Unaudited)
Average Annual Total Return1 (For periods ended April 30, 2016) | Six Month† | 1 Yr. | 5 Yr. | 10 Yr. | ||||||||||||||
Class A | w/o SC | 1.94% | 2.85% | 4.18% | 3.86% | |||||||||||||
w/SC2 | (2.37% | ) | (1.57% | ) | 3.29% | 3.41% | ||||||||||||
Class C | w/o SC | 1.58% | 2.11% | 3.42% | 3.11% | |||||||||||||
w/SC3 | 0.58% | 1.11% | 3.42% | 3.11% | ||||||||||||||
Class R4 | w/o SC | 1.83% | 2.63% | 4.12% | 3.98% | |||||||||||||
Institutional Service Class4 | w/o SC | 2.09% | 3.14% | 4.45% | 4.14% | |||||||||||||
Institutional Class4,5 | w/o SC | 2.08% | 3.12% | 4.45% | 4.14% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | Returns prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | A 4.25% front-end sales charge was deducted. |
3 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the six month and one year returns because it is charged when Class C shares are sold within the first year after purchase. |
4 | Not subject to any sales charge. Returns before the first offering of the Class R, Institutional Class and Institutional Service Class shares (February 25, 2013) are based on the previous performance of Class D shares. This performance is substantially similar to what Class R, Institutional Service Class, and Institutional Class shares would have produced because all classes invest in the same portfolio of securities. Returns for the Class R, Institutional Service Class, and Institutional Class shares would only differ to the extent of the differences in expenses of the classes. |
5 | Effective February 25, 2013, all Class D shares of the Fund were converted into Institutional Class shares of the Fund. |
Semi-Annual Report 2016
40
Aberdeen Tax-Free Income Fund (Unaudited)
Performance of a $10,000 Investment (as of April 30, 2016)
Comparative performance of $10,000 invested in Class A shares of the Aberdeen Tax-Free Income Fund, the Barclays Municipal Bond Index and the Consumer Price Index (CPI) over a 10-year period ended April 30, 2016. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.
The Barclays Municipal Bond Index is a broad market performance benchmark for the tax exempt bond market, the bonds included in this index must have a minimum credit rating of at least Baa. They must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $50 million. The index includes both zero coupon bonds and bonds subject to the Alternative Minimum Tax.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Municipal Bonds | 97.7% | |||
Repurchase Agreement | 1.1% | |||
Other assets in excess of liabilities | 1.2% | |||
100.0% |
Top Holdings* | ||||
Harris County Health Facilities Development Corp. Revenue Bonds (SCH Health Care System), Prerefunded/Escrowed to Maturity, Series B 07/01/2027 | 7.4% | |||
Pennsylvania Turnpike Commission Revenue Bonds, Series A 07/15/2029 | 5.7% | |||
New York State Dormitory Authority Revenue Bonds (State University Dormitory Facilities), Series A 07/01/2039 | 2.9% | |||
State of Texas General Obligation Unlimited Bonds (Transportation Commission), Unrefunded 04/01/2020 | 2.7% | |||
Fort Bend Independent School District General Obligation Unlimited Bonds, Prerefunded/Escrowed to Maturity 02/15/2018 | 2.6% | |||
University of California Revenue Bonds, Series Q 05/15/2029 | 2.6% | |||
New Jersey Economic Development Authority Revenue Bonds (School Facilities Conservation), Series BB 09/01/2024 | 2.5% | |||
Commonwealth of Massachusetts General Obligation Limited Bonds, Series D 10/01/2018 | 2.4% | |||
State of Washington General Obligation Unlimited Bonds, Series R-2010A 01/01/2022 | 2.4% | |||
County of King General Obligation Limited Bonds 01/01/2025 | 2.3% | |||
Other | 66.5% | |||
100.0% |
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Top States | ||||
Texas | 27.4% | |||
California | 10.6% | |||
Pennsylvania | 8.3% | |||
New York | 8.2% | |||
Washington | 6.0% | |||
Massachusetts | 5.8% | |||
Georgia | 4.9% | |||
New Jersey | 4.7% | |||
New Hampshire | 3.6% | |||
Louisiana | 3.2% | |||
Other | 17.3% | |||
100.0% |
2016 Semi-Annual Report
41
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Tax-Free Income Fund
Shares or Principal Amount | Value (US$) | |||||||
MUNICIPAL BONDS (97.7%) | ||||||||
Alabama (0.4%) | ||||||||
Industrial Development Board of the City of Mobile Alabama Revenue Bonds (Alabama Power Co.), 1.63%, 07/15/2034 (a) | $ | 400,000 | $ | 403,008 | ||||
Alaska (1.2%) | ||||||||
City of Valdez Revenue Bonds Pipelines Project, Series B, 5.00%, 01/01/2021 | 1,000,000 | 1,140,430 | ||||||
California (10.6%) | ||||||||
Brea Redevelopment Agency Tax Allocation Refunding Bonds, Series A, | 1,000,000 | 686,220 | ||||||
California Educational Facilities Authority Revenue Bonds (California Institute of Technology), 5.00%, 11/01/2039 | 1,000,000 | 1,119,350 | ||||||
Los Angeles Community College District General Obligation Unlimited Bonds, Series A, | 1,000,000 | 1,148,700 | ||||||
M-S-R Energy Authority Gas Revenue Bonds, Series B, 6.13%, 11/01/2029 | 500,000 | 656,645 | ||||||
M-S-R Energy Authority Revenue Bonds, Series A, | 500,000 | 720,470 | ||||||
San Francisco City & County Public Utilities Commission Revenue Bonds, Series F, | 300,000 | 350,565 | ||||||
Santa Clara Unified School District General Obligation Unlimited Bonds, 5.00%, 07/01/2026 | 465,000 | 522,214 | ||||||
State of California General Obligation Unlimited Bonds, Series A, 5.00%, 07/01/2022 | 1,100,000 | 1,108,008 | ||||||
Turlock Irrigation District Revenue Bonds, 5.00%, 01/01/2029 | 1,000,000 | 1,141,870 | ||||||
University of California Revenue Bonds, Series Q, | 2,320,000 | 2,453,214 | ||||||
9,907,256 | ||||||||
Florida (2.6%) | ||||||||
City of Tampa Revenue Bonds (Baycare Health Care System), Series A, 4.00%, 11/15/2033 | 1,000,000 | 1,066,150 | ||||||
CityPlace Community Development District, Special Assessment & Revenue Refunding Bonds, 5.00%, 05/01/2019 | 1,000,000 | 1,096,780 | ||||||
Volusia County Educational Facility Authority Revenue Bonds, Series B, 5.00%, 10/15/2023 | 250,000 | 301,267 | ||||||
2,464,197 | ||||||||
Georgia (4.9%) | ||||||||
Burke County Development Authority Pollution Control Revenue Bonds (Transmission Corp. Vogtle Project), 1.30%, 01/01/2052 (a) | 1,000,000 | 1,003,550 | ||||||
Burke County Development Authority Revenue Bonds (Georgia Power Company Plant Vogtle Project), 1.75%, 12/01/2049 (a) | 1,000,000 | 1,007,460 | ||||||
Cherokee County General Obligation Unlimited Bonds, 5.00%, 04/01/2021 | 500,000 | 559,325 | ||||||
Forsyth County General Obligation Unlimited Bonds, Series A, 5.00%, 03/01/2028 | 100,000 | 111,708 | ||||||
Monroe Country Development Authority Revenue Bonds, 2.35%, 10/01/2048 (a) | 1,000,000 | 1,027,310 | ||||||
Municipal Electric Authority of Georgia Revenue Bonds | ||||||||
Prerefunded/Escrowed to Maturity, Series V, 6.60%, 01/01/2018 | 240,000 | 254,661 | ||||||
Unrefunded, Series V, 6.60%, 01/01/2018 | 585,000 | 612,776 | ||||||
4,576,790 | ||||||||
Illinois (0.6%) | ||||||||
Illinois Finance Authority Revenue Bonds (Carle Foundation), Series A, 6.00%, 08/15/2041 | 500,000 | 593,420 | ||||||
Kentucky (1.2%) | ||||||||
County of Carroll Pollution Control Revenue Bonds (Utilities Company Project), Series C, | 1,200,000 | 1,084,996 | ||||||
Louisiana (3.2%) | ||||||||
East Baton Rouge Parish Sales Tax Revenue Bonds (Road & Street Improvement), 5.00%, 08/01/2024 | 540,000 | 610,756 | ||||||
Louisiana Public Facilities Authority Revenue Bonds (Entergy Louisiana LLC), Series B, | 1,000,000 | 1,026,680 | ||||||
Saint Charles Parish Revenue Bonds (Valero Energy Corp.), 4.00%, 12/01/2040 (a) | 1,250,000 | 1,360,200 | ||||||
2,997,636 | ||||||||
Massachusetts (5.8%) | ||||||||
Commonwealth of Massachusetts General Obligation Limited Bonds, Series D | ||||||||
5.50%, 10/01/2016 | 1,000,000 | 1,020,620 | ||||||
5.50%, 10/01/2018 | 2,000,000 | 2,225,800 | ||||||
5.50%, 08/01/2019 | 1,000,000 | 1,147,310 | ||||||
Massachusetts Development Finance Agency Revenue Bonds (Boston Medical Center) | ||||||||
Series C, 5.00%, 07/01/2017 | 500,000 | 524,040 | ||||||
Unrefunded, Series C, 5.00%, 07/01/2017 | 500,000 | 523,505 | ||||||
5,441,275 | ||||||||
Michigan (1.1%) | ||||||||
Grand Rapids Building Authority Revenue Bonds, 5.00%, 08/01/2020 | 900,000 | 1,013,922 | ||||||
Minnesota (0.6%) | ||||||||
University of Minnesota Revenue Bonds, Series A, | 500,000 | 559,990 | ||||||
Nebraska (0.9%) | ||||||||
Central Plains Energy Project, Gas Project Revenue Bonds (Project No.3), 5.00%, 09/01/2021 | 750,000 | 870,090 | ||||||
New Hampshire (3.6%) | ||||||||
New Hampshire Business Finance Authority Pollution Control Refunding Revenue Bonds (United Illuminating Company Project), Series A, 0.87%, 10/01/2033 (a) | 1,230,000 | 1,103,324 |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
42
Statement of Investments (continued)
April 30, 2016 (Unaudited)
Aberdeen Tax-Free Income Fund
Shares or Principal Amount | Value (US$) | |||||||
New Hampshire Health & Education Facilities Authority Revenue Bonds (Dartmouth College), 5.25%, 06/01/2039 | $ | 1,000,000 | $ | 1,119,320 | ||||
New Hampshire Health & Education Facilities Authority Revenue Bonds (University Systems), Series A, 5.00%, 07/01/2023 | 1,000,000 | 1,115,760 | ||||||
3,338,404 | ||||||||
New Jersey (4.7%) | ||||||||
New Jersey Economic Development Authority Revenue Bonds (School Facilities Conservation), Series BB, | 2,000,000 | 2,283,620 | ||||||
New Jersey Transportation Trust Fund Authority Revenue Bonds (Transportation System), Series A, 5.75%, 06/15/2017 | 1,000,000 | 1,051,900 | ||||||
New Jersey Turnpike Authority Revenue Bonds, Series A, 5.00%, 01/01/2031 | 850,000 | 1,036,201 | ||||||
4,371,721 | ||||||||
New York (8.2%) | ||||||||
Nassau County Local Economic Assistance Corp. Revenue Bonds (Catholic Health Services), 5.00%, 07/01/2030 | 1,000,000 | 1,165,780 | ||||||
New York State Dormitory Authority Revenue Bonds (State University Dormitory Facilities), Series A, 5.00%, 07/01/2039 | 2,500,000 | 2,758,275 | ||||||
New York State Dormitory Authority Revenue Bonds (State University Educational Facilities 3rd Generation), Series A, | 1,160,000 | 1,471,158 | ||||||
Oneida County Industrial Development Agency Revenue Bonds (Hamilton College Civic Facilities), 5.00%, 09/15/2027 | 1,000,000 | 1,094,930 | ||||||
Tompkins County Industrial Development Agency Revenue Bonds (Cornell University Civic Facilities), Series A, 5.25%, 07/01/2030 | 1,000,000 | 1,166,000 | ||||||
7,656,143 | ||||||||
North Dakota (1.1%) | ||||||||
City of Grand Forks, Health Care System Revenue Bonds (Altru Health System Obligated Group), 4.50%, 12/01/2032 | 1,000,000 | 1,060,630 | ||||||
Ohio (0.9%) | ||||||||
Ohio Air Quality Development Authority Revenue Bonds, Prerefunded, Series A, | 800,000 | 802,688 | ||||||
Pennsylvania (8.3%) | ||||||||
Lehigh County Industrial Development Authority Revenue Bonds (PPL Electric Utilities Corp), VRN, 0.90%, 09/01/2029 (a) | 250,000 | 249,670 | ||||||
Montgomery County Industrial Development Authority Health System Revenue Bonds, Series A, 5.00%, 01/15/2022 | 250,000 | 282,562 | ||||||
Pennsylvania Beaver County Industrial Development Authority Revenue Bonds, 3.50%, 04/01/2041 (a) | 1,000,000 | 1,035,750 | ||||||
Pennsylvania Higher Educational Facilities Authority Revenue Bonds (University of Pennsylvania), Series A, 5.00%, 09/01/2019 | 800,000 | 906,912 | ||||||
Pennsylvania Turnpike Commission Revenue Bonds, Series A, 5.25%, 07/15/2029 | 4,100,000 | 5,312,370 | ||||||
7,787,264 | ||||||||
Puerto Rico (1.4%) | ||||||||
Puerto Rico Sales Tax Financing Corp. Revenue Bonds, Series A, 0.00%, 08/01/2054 (b) | 15,875,000 | 1,330,166 | ||||||
Rhode Island (0.8%) | ||||||||
Tobacco Settlement Financing Corp. Revenue Bonds, Series B, 4.50%, 06/01/2045 | 750,000 | 771,375 | ||||||
South Carolina (0.4%) | ||||||||
University of South Carolina Revenue Bonds, Series A, 5.00%, 06/01/2030 | 350,000 | 378,301 | ||||||
Tennessee (0.6%) | ||||||||
Tennessee Energy Acquisition Corp. Revenue Bonds, Series A, 5.25%, 09/01/2023 | 500,000 | 603,760 | ||||||
Texas (27.4%) | ||||||||
City of Houston General Obligation Limited Bonds (Public Improvement), Series A, | 1,575,000 | 1,736,406 | ||||||
Dallas Area Rapid Transit Revenue Bonds | ||||||||
5.00%, 12/01/2036 | 730,000 | 748,579 | ||||||
Unrefunded, 5.00%, 12/01/2036 | 520,000 | 532,074 | ||||||
Dallas/Fort Worth International Airport Revenue Bonds, Joint Revenue Refunding Bonds, Series B, 5.00%, 11/01/2020 | 1,000,000 | 1,167,590 | ||||||
Fort Bend Independent School District General Obligation Unlimited Bonds, Prerefunded/Escrowed to Maturity, 5.00%, 02/15/2018 | 2,300,000 | 2,475,950 | ||||||
Harris County Health Facilities Development Corp. Revenue Bonds (SCH Health Care System), Prerefunded/Escrowed to Maturity, Series B, 5.75%, 07/01/2027 | 5,325,000 | 6,900,082 | ||||||
Lower Colorado River Authority Revenue Bonds, Prerefunded/Escrowed to Maturity, Series B, | 1,245,000 | 1,288,587 | ||||||
Matagorda County Navigation District No. 1 Revenue Bonds, Series B-1, | 1,000,000 | 1,073,910 | ||||||
SA Energy Acquisition Public Facility Corp. Revenue Bonds (Gas Supply), 5.25%, 08/01/2016 | 500,000 | 505,550 | ||||||
State of Texas General Obligation Unlimited Bonds (Transportation Commission) | ||||||||
Prerefunded, 5.00%, 04/01/2020 | 95,000 | 98,692 | ||||||
Unrefunded, 5.00%, 04/01/2020 | 2,405,000 | 2,500,695 | ||||||
State of Texas General Obligation Unlimited Bonds (Water Financial Assistance), Series C, 5.25%, 08/01/2018 | 1,050,000 | 1,154,822 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
43
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Tax-Free Income Fund
Shares or Principal Amount | Value (US$) | |||||||
State of Texas Transportation Commission Revenue Bonds, 5.00%, 04/01/2027 | $ | 1,500,000 | $ | 1,559,685 | ||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue Bonds (Baylor Scott & White Obligated Group), 5.00%, 11/15/2029 | 800,000 | 990,880 | ||||||
Texas A&M University Revenue Bonds (Financing System), Series A, | 1,065,000 | 1,193,886 | ||||||
Texas Municipal Gas Acquisition & Supply Corp. I Revenue Bonds, Series D, | 500,000 | 632,180 | ||||||
University of North Texas Revenue Bonds (Financing System), Series A, | 1,000,000 | 1,114,950 | ||||||
25,674,518 | ||||||||
Washington (6.0%) | ||||||||
City of Seattle Water System Revenue Bonds, 5.00%, 02/01/2026 | 1,000,000 | 1,073,930 | ||||||
County of King General Obligation Limited Bonds, 5.00%, 01/01/2025 | 2,000,000 | 2,137,400 | ||||||
State of Washington General Obligation Unlimited Bonds | ||||||||
Series R-2010A, 5.00%, 01/01/2022 | 2,000,000 | 2,212,100 | ||||||
Series C, 5.00%, 01/01/2026 | 200,000 | 213,946 | ||||||
5,637,376 | ||||||||
West Virginia (0.6%) | ||||||||
West Virginia Economic Development Authority Revenue Bonds, Unrefunded, Series A, 1.90%, 03/01/2040 (a) | 550,000 | 552,327 | ||||||
Wisconsin (0.6%) | ||||||||
Wisconsin Health & Educational Facilities Authority Revenue Bonds (Aurora Health Care), Series A, 5.00%, 07/15/2028 | 500,000 | 571,290 | ||||||
Total Municipal Bonds | 91,588,973 | |||||||
REPURCHASE AGREEMENT (1.1%) | ||||||||
United States (1.1%) | ||||||||
Repurchase Agreement, Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $1,019,003, collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $1,041,431 | 1,019,000 | 1,019,000 | ||||||
Total Repurchase Agreement | 1,019,000 | |||||||
Total Investments | 92,607,973 | |||||||
Other assets in excess of liabilities—1.2% | 1,116,535 | |||||||
Net Assets—100.0% | $ | 93,724,508 |
(a) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(b) | Issued with a zero coupon. |
(c) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
44
Aberdeen Ultra-Short Duration Bond Fund (Unaudited)
The Aberdeen Ultra-Short Duration Bond Fund (Institutional Class shares net of fees) returned 0.45% for the six-month period ended April 30, 2016, versus the 0.32% return of its benchmark, the Bank of America Merrill Lynch 1-Year Treasury Bill Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Ultra-Short Obligation Funds (comprising 56 funds), as measured by Lipper, Inc., was 0.26% for the period.
Despite navigating some rough patches, the U.S. investment-grade fixed income market ended the reporting period in positive territory, with the Barclays U.S. Aggregate Bond Index returning 2.82%. Corporate bonds, as measured by the Barclays U.S. Corporate Investment Grade Index, outperformed versus comparable-duration1 U.S. Treasury securities, as represented by the Barclays U.S. Treasury Index, over the period. Yields declined in all but the shortest segments of the U.S. Treasury yield curve. Yields on three- and six-month and one- and two-year Treasuries rose by corresponding margins of 14, 17, 22 and 2 basis points (bps), or 0.14%, 0.17%, 0.22% and 0.02%, ending the period at 0.22%, 0.40%, 0.56% and 0.77%, respectively. Conversely, yields in the “belly” (maturities of between three and seven years) and long-term portions of the curve saw double-digit declines during the reporting period.
As widely expected, the U.S. Federal Reserve (Fed) raised the federal funds rate by 25 basis points (0.25%) in mid-December 2015, and subsequently left the benchmark interest rate unchanged following its meetings in January and March 2016. Towards the end of the reporting period in April, the Fed announced its intention to maintain the federal funds rate at a range of 0.25%-0.50% for the foreseeable future. The central bank noted that, while household spending growth has moderated, real income has increased and consumer sentiment remains high. Perhaps more importantly, in our view, the Fed removed risk language referencing concerns about global economic and financial developments from its statement, which we believe may leave a June 2016 interest rate hike on the table.
U.S. economic data reports released over the reporting period were generally mixed, in our view. Gross domestic product (GDP) expanded by 1.4% in the fourth quarter of 2015, but subsequently decelerated to a 0.5% rate in the first quarter of 2016. The U.S. Department of Commerce attributed the slowdown to a decline in nonresidential fixed investment and a rise in imports (which are subtracted from GDP), which offset the positive impact of increases in consumer spending and residential fixed investment for the quarter. According to the U.S. Department of Labor, the U.S. economy added an average of nearly 190,000 jobs per month over the six-month reporting period, and the unemployment rate was unchanged at 5.0%. The labor force participation rate2 rose steadily for most of the reporting period before dipping slightly in April, ending 0.3% higher at 62.8%. Additionally, average hourly earnings rose 2.5% year-over-year for the period ended April 30, 2016, modestly outpacing the core inflation rate (which excludes food and energy costs) of 2.2%.
The Fund’s performance over the reporting period benefited from its conservative positioning in the energy and basic materials sectors, which experienced a dramatic sell-off for the majority of the period given the decline in oil and commodity prices. The Fund’s energy exposure was focused on large-cap oil producers which fared much better relative to their smaller counterparts, which experienced solvency issues. Additionally, the Fund’s underweight exposure to interest-rate risk contributed to performance as it helped ease the negative impact of an increase in U.S. Treasury yields following the Fed’s monetary policy tightening in December 2015.
There were no significant detractors from Fund performance for the reporting period.
Regarding the use of derivatives in the Fund during the reporting period, we employed interest rate futures as a hedge against interest rate risk. These positions did not have a significant impact on the Fund’s total return over the period.
We made no substantial changes to the Fund’s strategy during the reporting period.
We believe that the Fed will raise the federal funds rate once in the 2016 calendar year as the U.S. economy nears full employment (in which all jobseekers who want to work can find employment at prevailing wage rates) and the level of inflation begins to inch higher throughout the remainder of the year. In our view, the market does not appear to be pricing in any increase in the federal funds rate for 2016, leading to what we believe are overvalued Treasury prices. Consequently, we continue to focus on enhancing the Fund’s return through its corporate debt exposure. We remain comfortable with corporate fundamentals despite the recent slowdown in earnings. We believe that the U.S. economy is on solid footing and corporations should be able to withstand any global headwinds.
Portfolio Management:
Aberdeen North American Fixed Income Team
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The performance data quoted represents past performance and current returns may be lower or higher. Class A Shares have up to a 4.25% front-end sales charge and a 0.25% 12b-1 fee. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us.
Investing in mutual funds involves risk, including the possible loss of principal.
Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
Lipper is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
1 | Duration is an estimate of bond price sensitivity to changes in interest rates. The higher the duration, the greater the change (i.e., higher risk) in relation to interest-rate movements. |
2 | The labor force participation rate is expressed as a percentage of the U.S. population aged 16 years and older working or actively seeking work. |
2016 Semi-Annual Report
45
Aberdeen Ultra-Short Duration Bond Fund (Unaudited) (concluded)
Risk Considerations
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).
Futures are speculative and may hurt the Fund’s performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing a significant portion of the Fund’s assets in securities of companies conducting business in a broadly related group of industries within an economic sector may make the Fund more vulnerable to unfavorable developments in that sector.
Please read the prospectus for more detailed information regarding these and other risks.
Semi-Annual Report 2016
46
Aberdeen Ultra-Short Duration Bond Fund (Unaudited)
Average Annual Total Return (For periods ended October 31, 2015) | Six Month† | 1 Yr. | 5Yr. | Inception1 | ||||||||||||||
Class A2 | w/o SC | 0.32% | 0.33% | 0.46% | 0.49% | |||||||||||||
w/SC3 | (3.94% | ) | (3.93% | ) | (0.40% | ) | (0.31% | ) | ||||||||||
Class C | w/o SC | 0.18% | 0.31% | 0.57% | 0.59% | |||||||||||||
w/SC | (0.82% | ) | (0.69% | ) | 0.57% | 0.59% | ||||||||||||
Institutional Service Class2,4 | w/o SC | 0.44% | 0.48% | 0.63% | 0.64% | |||||||||||||
Institutional Class4 | w/o SC | 0.45% | 0.58% | 0.62% | 0.64% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
† | Not Annualized. |
1 | The Fund commenced operations on November 30, 2010. |
2 | Returns before the first offering of Class A (November 22, 2011), Institutional Service Class shares (January 20, 2012) and Class C shares (December 14, 2015) are based on the previous performance of the Institutional Class. This performance is substantially similar to what Class A, Institutional Service Class and Class C shares would have produced because all classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the classes. |
3 | A 4.25% front-end sales charge was deducted. |
4 | Not subject to any sales charges. |
Semi-Annual Report 2016
47
Aberdeen Ultra-Short Duration Bond Fund (Unaudited)
Performance of a $100,000* Investment (as of April 30, 2016)
* | Minimum Initial Investment |
Comparative Performance of $100,000 invested in Institutional Class shares of the Aberdeen Ultra-Short Duration Bond Fund, the Bank of America Merrill Lynch 1-Year Treasury Bill Index and the Consumer Price Index (CPI) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses or sales charges. Investors cannot invest directly in market indexes.
The Bank of America Merrill Lynch 1-Year Treasury Bill Index is a capitalization-weighted index comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, 1 year from the rebalancing date.
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions. Total returns reflect waivers and reimbursements in effect, without which returns would have been lower.
Portfolio Summary (as a percentage of net assets)
April 30, 2016 (Unaudited)
Asset Allocation | ||||
Corporate Bonds | 62.0% | |||
U.S. Treasuries | 18.3% | |||
U.S. Agencies | 15.0% | |||
Repurchase Agreement | 2.5% | |||
Commercial Paper | 2.2% | |||
Asset-Backed Securities | –% | |||
Other assets in excess of liabilities | –% | |||
100.0% |
Amounts listed as “–” are 0% or round to 0%
The following chart summarizes the composition of the Fund’s portfolio, expressed as a percentage of net assets. The industries listed below may include more than one industry group. As of April 30, 2016, the Fund did not have more than 25% of its assets invested in any industry group.
Top Industries | ||||
Commercial Banks | 10.3% | |||
Electric Utilities | 6.4% | |||
Oil, Gas & Consumable Fuels | 5.7% | |||
Pharmaceutical | 5.1% | |||
Auto Manufacturers | 5.0% | |||
Diversified Telecommunication Services | 3.6% | |||
Insurance | 3.0% | |||
Retail | 2.8% | |||
Healthcare Providers & Services | 2.7% | |||
Food Products | 2.2% | |||
Other | 53.2% | |||
100.0% | ||||
Top Holdings* | ||||
U.S. Treasury Notes 09/15/2017 | 7.7% | |||
Federal Home Loan Bank 07/01/2016 | 6.7% | |||
U.S. Treasury Floating Rate Note 10/31/2017 | 5.5% | |||
Federal Home Loan Bank 05/26/2016 | 4.2% | |||
U.S. Treasury Notes 02/28/2017 | 4.2% | |||
Federal Home Loan Bank 11/23/2016 | 2.2% | |||
Federal Home Loan Bank 06/01/2016 | 1.9% | |||
Daimler Finance North America LLC 08/01/2016 | 1.7% | |||
BMW US Capital LLC 04/11/2019 | 1.6% | |||
Berkshire Hathaway Finance Corp. 08/15/2016 | 1.6% | |||
Other | 62.7% | |||
100.0% |
Top Countries | ||||
United States | 86.4% | |||
Canada | 4.6% | |||
Germany | 1.7% | |||
Belgium | 1.7% | |||
Australia | 1.5% | |||
Luxembourg | 1.1% | |||
United Kingdom | 1.1% | |||
Netherlands | 1.1% | |||
Switzerland | 0.8% | |||
Other | –% | |||
100.0% |
Amounts listed as “-” are 0% or round to 0%
* | For the purpose of listing top holdings, repurchase agreements are included as part of Other. |
Semi-Annual Report 2016
48
Statement of Investments
April 30, 2016 (Unaudited)
Aberdeen Ultra-Short Duration Bond Fund
Shares or Principal Amount | Value (US$) | |||||||
ASSET-BACKED SECURITIES (0.0%) | ||||||||
AUSTRALIA (0.0%) | ||||||||
SMART Trust, Series 2012-4US, Class A3B (USD), 0.99%, 03/14/2017 (a) | $ | 63 | $ | 63 | ||||
Total Asset-Backed Securities | 63 | |||||||
CORPORATE BONDS (62.0%) | ||||||||
AUSTRALIA (1.5%) | ||||||||
Commercial Banks (1.5%) | ||||||||
Suncorp-Metway Ltd. (USD), 2.10%, 05/03/2019 (b) | 40,000 | 40,236 | ||||||
Westpac Banking Corp. (USD), | 100,000 | 100,146 | ||||||
140,382 | ||||||||
BELGIUM (1.7%) | ||||||||
Beverages (1.7%) | ||||||||
Anheuser-Busch InBev Finance, Inc. (USD), | 150,000 | 149,910 | ||||||
CANADA (4.6%) | ||||||||
Commercial Banks (4.4%) | ||||||||
Bank of Montreal (USD), 1.15%, 07/15/2016 (a) | 100,000 | 100,099 | ||||||
Bank of Nova Scotia (USD), 1.10%, 06/11/2018 (a) | 100,000 | 99,734 | ||||||
Royal Bank of Canada (USD), 0.97%, 01/23/2017 (a) | 100,000 | 100,097 | ||||||
Toronto-Dominion Bank (The) (USD), | 100,000 | 100,149 | ||||||
400,079 | ||||||||
Oil, Gas & Consumable Fuels (0.2%) | ||||||||
Canadian Natural Resources Ltd. (USD), | 20,000 | 19,663 | ||||||
419,742 | ||||||||
GERMANY (1.7%) | ||||||||
Auto Manufacturers (1.7%) | ||||||||
Daimler Finance North America LLC (USD), | 150,000 | 150,171 | ||||||
LUXEMBOURG (1.1%) | ||||||||
Pharmaceutical (1.1%) | ||||||||
Actavis Funding SCS (USD), 1.51%, 09/01/2016 (a) | 100,000 | 100,124 | ||||||
NETHERLANDS (1.1%) | ||||||||
Oil, Gas & Consumable Fuels (1.1%) | ||||||||
Shell International Finance BV (USD), | 100,000 | 99,700 | ||||||
SWITZERLAND (0.8%) | ||||||||
Metals & Mining (0.8%) | ||||||||
Glencore Funding LLC (USD), 1.70%, 05/27/2016 (b) | 75,000 | 75,000 | ||||||
UNITED KINGDOM (1.1%) | ||||||||
Oil, Gas & Consumable Fuels (1.1%) | ||||||||
BP Capital Markets PLC (USD), | 100,000 | 100,045 | ||||||
UNITED STATES (48.4%) | ||||||||
Auto Manufacturers (3.3%) | ||||||||
BMW US Capital LLC (USD), 1.50%, 04/11/2019 (b) | 150,000 | 150,316 | ||||||
PACCAR Financial Corp. (USD), 1.45%, 03/09/2018 | 100,000 | 100,258 | ||||||
Toyota Motor Credit Corp. (USD), | 50,000 | 49,936 | ||||||
300,510 | ||||||||
COMMERCIAL BANKS (4.4%) | ||||||||
Citigroup, Inc. (USD), 1.30%, 11/15/2016 | 100,000 | 100,078 | ||||||
HSBC USA, Inc. (USD), 1.08%, 03/03/2017 (a) | 100,000 | 99,905 | ||||||
Morgan Stanley (USD), 1.88%, 01/05/2018 | 100,000 | 100,439 | ||||||
Wells Fargo & Co. (USD), 0.93%, 06/02/2017 (a) | 100,000 | 99,841 | ||||||
400,263 | ||||||||
Computers & Peripherals (1.7%) | ||||||||
Apple, Inc. (USD), 1.44%, 02/22/2019 (a) | 100,000 | 101,194 | ||||||
Hewlett Packard Enterprise Co. (USD), | 50,000 | 50,559 | ||||||
151,753 | ||||||||
Diversified Financial Services (1.5%) | ||||||||
American Express Credit Corp. (USD), 1.30%, 07/29/2016 | 100,000 | 100,149 | ||||||
National Rural Utilities Cooperative Finance Corp. (USD), 0.95%, 04/24/2017 | 40,000 | 40,018 | ||||||
140,167 | ||||||||
Diversified Telecommunication Services (3.6%) | ||||||||
Cisco Systems, Inc. | ||||||||
(USD), 0.94%, 06/15/2018 (a) | 100,000 | 100,236 | ||||||
(USD), 1.60%, 02/28/2019 | 100,000 | 101,290 | ||||||
Verizon Communications, Inc. (USD), | 125,000 | 125,587 | ||||||
327,113 | ||||||||
Electric Utilities (6.4%) | ||||||||
Dayton Power & Light Co. (The) (USD), | 35,000 | 35,090 | ||||||
Dominion Resources, Inc. (USD), 1.25%, 03/15/2017 | 125,000 | 125,028 | ||||||
Duke Energy Corp. (USD), 1.01%, 04/03/2017 (a) | 100,000 | 99,591 | ||||||
Duke Energy Indiana, Inc. (USD), | 130,000 | 130,037 | ||||||
Exelon Corp. (USD), 1.55%, 06/09/2017 | 50,000 | 49,990 | ||||||
Georgia Power Co. (USD), 1.02%, 08/15/2016 (a) | 30,000 | 30,000 | ||||||
NextEra Energy Capital Holdings, Inc. (USD), | 100,000 | 100,185 | ||||||
Xcel Energy, Inc. (USD), 1.20%, 06/01/2017 | 20,000 | 19,980 | ||||||
589,901 | ||||||||
Electrical Equipment (1.4%) | ||||||||
General Electric Co. | ||||||||
(USD), 1.49%, 05/09/2016 (a) | 25,000 | 25,004 | ||||||
(USD), 1.28%, 07/12/2016 (a) | 100,000 | 100,124 | ||||||
125,128 |
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
49
Statement of Investments (concluded)
April 30, 2016 (Unaudited)
Aberdeen Ultra-Short Duration Bond Fund
Shares or Principal Amount | Value (US$) | |||||||
Energy Equipment & Services (1.1%) | ||||||||
Kinder Morgan, Inc. (USD), 2.00%, 12/01/2017 | $ | 100,000 | $ | 99,129 | ||||
Food Products (2.2%) | ||||||||
JM Smucker Co. (USD), 1.75%, 03/15/2018 | 100,000 | 100,637 | ||||||
WM Wrigley Jr Co. (USD), 1.40%, 10/21/2016 (b) | 100,000 | 100,215 | ||||||
200,852 | ||||||||
Gas Utilities (1.9%) | ||||||||
Dominion Gas Holdings LLC (USD), | 120,000 | 120,041 | ||||||
Sempra Energy (USD), 2.30%, 04/01/2017 | 55,000 | 55,431 | ||||||
175,472 | ||||||||
Health Care Equipment & Supplies (1.6%) | ||||||||
Thermo Fisher Scientific, Inc. (USD), | 145,000 | 144,989 | ||||||
Healthcare Providers & Services (2.7%) | ||||||||
UnitedHealth Group, Inc. (USD), | 100,000 | 100,150 | ||||||
Ventas Realty LP (USD), 1.25%, 04/17/2017 | 145,000 | 144,710 | ||||||
244,860 | ||||||||
Insurance (3.0%) | ||||||||
Berkshire Hathaway Finance Corp. (USD), | 150,000 | 150,098 | ||||||
MetLife, Inc. (USD), 1.90%, 12/15/2017 | 25,000 | 25,219 | ||||||
New York Life Global Funding (USD), | 100,000 | 100,121 | ||||||
275,438 | ||||||||
Machinery-Diversified (1.1%) | ||||||||
John Deere Capital Corp., Series FIX (USD), | 100,000 | 100,165 | ||||||
Office/Business Equipment (0.2%) | ||||||||
Xerox Corp. (USD), 6.35%, 05/15/2018 | 20,000 | 21,499 | ||||||
Oil & Gas Services (1.1%) | ||||||||
Schlumberger Holdings Corp. (USD), | 100,000 | 99,774 | ||||||
Oil, Gas & Consumable Fuels (3.3%) | ||||||||
Chevron Corp. (USD), 1.37%, 03/02/2018 | 100,000 | 100,420 | ||||||
Devon Energy Corp. (USD), 1.17%, 12/15/2016 (a) | 100,000 | 98,597 | ||||||
Exxon Mobil Corp. (USD), 1.31%, 03/06/2018 | 100,000 | 100,617 | ||||||
299,634 | ||||||||
Pharmaceutical (4.0%) | ||||||||
AbbVie, Inc. (USD), 1.80%, 05/14/2018 | 100,000 | 100,696 | ||||||
Baxalta, Inc. (USD), 1.40%, 06/22/2018 (a)(b) | 100,000 | 98,759 | ||||||
Cardinal Health, Inc. (USD), 1.95%, 06/15/2018 | 100,000 | 101,046 | ||||||
Mylan, Inc. (USD), 1.80%, 06/24/2016 | 65,000 | 65,056 | ||||||
365,557 | ||||||||
Retail (2.8%) | ||||||||
CVS Health Corp. (USD), 1.20%, 12/05/2016 | 100,000 | 100,241 | ||||||
Home Depot, Inc. (USD), 1.00%, 09/15/2017 (a) | 80,000 | 80,341 | ||||||
Lowe’s Cos., Inc. (USD), 1.23%, 09/14/2018 (a) | 80,000 | 80,716 | ||||||
261,298 | ||||||||
Software (1.1%) | ||||||||
Oracle Corp. (USD), 0.83%, 07/07/2017 (a) | 100,000 | 100,080 | ||||||
4,423,582 | ||||||||
Total Corporate Bonds | 5,658,656 | |||||||
U.S. AGENCIES (15.0%) | ||||||||
UNITED STATES (15.0%) | ||||||||
Federal Home Loan Bank | ||||||||
(USD), 0.00%, 05/26/2016 (c) | 390,000 | 389,857 | ||||||
(USD), 0.00%, 06/01/2016 (c) | 175,000 | 174,958 | ||||||
(USD), 0.00%, 07/01/2016 (c) | 610,000 | 609,675 | ||||||
(USD), 0.63%, 11/23/2016 | 200,000 | 200,113 | ||||||
1,374,603 | ||||||||
Total U.S. Agencies | 1,374,603 | |||||||
U.S. TREASURIES (18.3%) | ||||||||
UNITED STATES (18.3%) | ||||||||
U.S. Treasury Floating Rate Note (USD), 0.42%, 10/31/2017 (a) | 500,000 | 500,462 | ||||||
U.S. Treasury Notes | ||||||||
(USD), 0.50%, 06/30/2016 (d) | 50,000 | 50,019 | ||||||
(USD), 0.50%, 02/28/2017 | 380,000 | 379,822 | ||||||
(USD), 1.00%, 09/15/2017 | 700,000 | 703,062 | ||||||
(USD), 1.00%, 12/31/2017 | 40,000 | 40,175 | ||||||
1,673,540 | ||||||||
Total U.S. Treasuries | 1,673,540 | |||||||
COMMERCIAL PAPER (2.2%) | ||||||||
UNITED STATES (2.2%) | ||||||||
Ryder System, Inc. (USD), 0.68%, 05/03/2016 | 200,000 | 199,992 | ||||||
Total Commercial Paper | 199,992 | |||||||
REPURCHASE AGREEMENT (2.5%) | ||||||||
UNITED STATES (2.5%) | ||||||||
Fixed Income Clearing Corp., 0.03%, dated 04/29/2016, due 05/02/2016, repurchase price $225,001 collateralized by U.S. Treasury Note, maturing 05/15/2025; total market value of $233,156 | 225,000 | 225,000 | ||||||
Total Repurchase Agreement | 225,000 | |||||||
Total Investments | 9,131,854 | |||||||
Other assets in excess of liabilities—0.0% | 1,977 | |||||||
Net Assets—100.0% | $ | 9,133,831 |
(a) | Variable or Floating Rate Security. Rate disclosed is as of April 30, 2016. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Issued with a zero coupon. |
(d) | A security or a portion of the security was used to cover the margin requirement for futures contracts. |
(e) | See accompanying Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
USD | U.S. Dollar |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
50
Statements of Assets and Liabilities (Unaudited)
April 30, 2016
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value | $ | 28,973,131 | $ | 28,553,893 | $ | 10,621,484 | $ | 13,865,014 | $ | 91,588,973 | ||||||||||
Repurchase agreements, at value | 1,643,000 | 675,000 | 352,000 | 184,000 | 1,019,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments | 30,616,131 | 29,228,893 | 10,973,484 | 14,049,014 | 92,607,973 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Foreign currency, at value | 531,066 | – | 22,626 | 23,706 | – | |||||||||||||||
Cash collateral pledged for futures | 78,022 | – | – | 28,022 | – | |||||||||||||||
Cash | – | 524 | 416 | 273 | 627 | |||||||||||||||
Cash at broker for China A shares | 526 | – | – | – | – | |||||||||||||||
Receivable for investments sold | 2,991,313 | 381,794 | – | 259,409 | – | |||||||||||||||
Interest receivable | 377,111 | 655,026 | 185,583 | 105,651 | 1,125,092 | |||||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | 787,504 | 204,551 | 111,319 | 52,735 | – | |||||||||||||||
Receivable from Adviser | 9,412 | 8,649 | 13,411 | 12,817 | 9,874 | |||||||||||||||
Receivable for capital shares issued | – | – | 102 | 639 | 35,867 | |||||||||||||||
Variation margin receivable for futures contracts | 18,556 | – | – | 12,776 | – | |||||||||||||||
Prepaid expenses | 54,779 | 31,958 | 41,654 | 48,470 | 45,409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 35,464,420 | 30,511,395 | 11,348,595 | 14,593,512 | 93,824,842 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | 195,373 | – | – | – | – | |||||||||||||||
Payable for investments purchased | 276,522 | 671,077 | 57,497 | 361,347 | – | |||||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | 657,095 | 553,955 | 90,069 | 47,449 | – | |||||||||||||||
Distributions payable | – | – | – | – | 18,733 | |||||||||||||||
Payable for capital shares redeemed | 1,500 | – | 26 | 7,715 | – | |||||||||||||||
Accrued foreign capital gains tax | 66,110 | 2,311 | 3,962 | – | – | |||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||
Audit fees | 24,237 | 24,237 | 24,237 | 24,237 | 22,644 | |||||||||||||||
Investment advisory fees | 14,118 | 17,713 | 7,108 | 6,857 | 32,695 | |||||||||||||||
Transfer agent fees | 40,035 | 3,465 | 2,279 | 1,562 | 3,719 | |||||||||||||||
Custodian fees | 31,062 | 1,966 | 2,683 | 7,690 | 1,603 | |||||||||||||||
Printing fees | 3,370 | 529 | 1,057 | 7,181 | 4,133 | |||||||||||||||
Sub-transfer agent and administrative services fees | 6,577 | 72 | 1,095 | 4,737 | 415 | |||||||||||||||
Administration fees | 2,259 | 1,889 | 711 | 914 | 6,150 | |||||||||||||||
Fund accounting fees | 5,768 | 863 | 324 | 453 | 2,759 | |||||||||||||||
Distribution fees | 475 | 507 | 627 | 373 | 2,746 | |||||||||||||||
Legal fees | 511 | 690 | 274 | 390 | 2,384 | |||||||||||||||
Other | 2,919 | 488 | 245 | 315 | 2,353 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 1,327,931 | 1,279,762 | 192,194 | 471,220 | 100,334 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 34,136,489 | $ | 29,231,633 | $ | 11,156,401 | $ | 14,122,292 | $ | 93,724,508 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cost: | ||||||||||||||||||||
Investments | $ | 28,785,120 | $ | 29,428,407 | $ | 12,383,360 | $ | 13,659,431 | $ | 83,861,616 | ||||||||||
Repurchase agreements | 1,643,000 | 675,000 | 352,000 | 184,000 | 1,019,000 | |||||||||||||||
Foreign currency | 525,748 | – | 22,262 | 23,294 | – | |||||||||||||||
Represented by: | ||||||||||||||||||||
Capital | $ | 41,294,674 | $ | 31,850,146 | $ | 15,905,343 | $ | 14,547,926 | $ | 86,208,240 | ||||||||||
Accumulated net investment income/(loss) | 631,253 | 594,184 | (132,693 | ) | 40,520 | (18,342 | ) | |||||||||||||
Accumulated net realized (loss) from investments, futures contracts, swaps and foreign currency transactions | (8,042,245 | ) | (1,991,506 | ) | (2,879,845 | ) | (679,859 | ) | (192,747 | ) | ||||||||||
Net unrealized appreciation/(depreciation) on investments, futures contracts, forwards and translation of assets and liabilities denominated in foreign currencies | 252,807 | (1,221,191 | ) | (1,736,404 | ) | 213,705 | 7,727,357 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 34,136,489 | $ | 29,231,633 | $ | 11,156,401 | $ | 14,122,292 | $ | 93,724,508 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets: | ||||||||||||||||||||
Class A Shares | $ | 620,956 | $ | 10,757 | $ | 172,506 | $ | 733,179 | $ | 10,253,469 | ||||||||||
Class C Shares | 382,937 | 619,234 | 67,045 | 273,915 | 784,310 | |||||||||||||||
Class R Shares | 10,211 | 10,096 | 1,373,478 | – | 10,649 | |||||||||||||||
Institutional Service Class Shares | 10,290,064 | 10,275 | 8,267 | 11,427,300 | 27,962 | |||||||||||||||
Institutional Class Shares | 22,832,321 | 28,581,271 | 9,535,105 | 1,687,898 | 82,648,118 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 34,136,489 | $ | 29,231,633 | $ | 11,156,401 | $ | 14,122,292 | $ | 93,724,508 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
51
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | ||||||||||||||||
Shares Outstanding (unlimited number of shares authorized): | ||||||||||||||||||||
Class A Shares | 61,981 | 1,199 | 23,068 | 74,197 | 1,001,949 | |||||||||||||||
Class C Shares | 38,845 | 69,147 | 9,128 | 28,097 | 76,751 | |||||||||||||||
Class R Shares | 1,024 | 1,126 | 185,605 | – | 1,040 | |||||||||||||||
Institutional Service Class Shares | 1,028,194 | 1,144 | 1,096 | 1,154,135 | 2,730 | |||||||||||||||
Institutional Class Shares | 2,274,827 | 3,186,232 | 1,264,235 | 169,694 | 8,068,011 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 3,404,871 | 3,258,848 | 1,483,132 | 1,426,123 | 9,150,481 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||||||||||||||||||
Class A Shares | $ | 10.02 | $ | 8.97 | $ | 7.48 | $ | 9.88 | $ | 10.23 | ||||||||||
Class C Shares(a) | $ | 9.86 | $ | 8.96 | $ | 7.34 | $ | 9.75 | $ | 10.22 | ||||||||||
Class R Shares | $ | 9.97 | $ | 8.97 | $ | 7.40 | $ | – | $ | 10.24 | ||||||||||
Institutional Service Class Shares | $ | 10.01 | $ | 8.98 | $ | 7.54 | $ | 9.90 | $ | 10.24 | ||||||||||
Institutional Class Shares | $ | 10.04 | (b) | $ | 8.97 | $ | 7.54 | $ | 9.95 | $ | 10.24 | |||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||||||
Class A Shares | $ | 10.46 | $ | 9.37 | $ | 7.81 | $ | 10.32 | $ | 10.68 | ||||||||||
Maximum Sales Charge: | ||||||||||||||||||||
Class A Shares | 4.25 | % | 4.25 | % | 4.25 | % | 4.25 | % | 4.25 | % |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year due to contingent deferred sales charge. |
(b) | The NAV shown above differs from the traded NAV on April 30, 2016 due to financial statement rounding and/or financial statement adjustments. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
52
Statements of Assets and Liabilities (Unaudited) (continued)
April 30, 2016
Aberdeen Ultra-Short | ||||
Assets: | ||||
Investments, at value | $ | 8,906,854 | ||
Repurchase agreements, at value | 225,000 | |||
|
| |||
Total investments | 9,131,854 | |||
|
| |||
Cash | 129 | |||
Interest receivable | 17,955 | |||
Receivable from Adviser | 10,168 | |||
Prepaid expenses | 45,808 | |||
|
| |||
Total assets | 9,205,914 | |||
|
| |||
Liabilities: | ||||
Payable for investments purchased | 39,968 | |||
Distributions payable | 386 | |||
Payable for capital shares redeemed | 1,797 | |||
Accrued expenses and other payables: | ||||
Audit fees | 22,644 | |||
Custodian fees | 1,925 | |||
Investment advisory fees | 1,522 | |||
Distribution fees | 1,509 | |||
Transfer agent fees | 880 | |||
Sub-transfer agent and administrative fees | 609 | |||
Printing fees | 343 | |||
Fund accounting fees | 252 | |||
Legal fees | 149 | |||
Other | 99 | |||
|
| |||
Total liabilities | 72,083 | |||
|
| |||
Net Assets | $ | 9,133,831 | ||
|
| |||
Cost: | ||||
Investments | $ | 8,895,620 | ||
Repurchase agreements | 225,000 | |||
Represented by: | ||||
Capital | $ | 9,129,733 | ||
Accumulated net investment (loss) | (268 | ) | ||
Accumulated net realized (loss) from investments, futures contracts, swaps and foreign currency transactions | (6,868 | ) | ||
Net unrealized appreciation on investments, futures contracts, forwards and translation of assets and liabilities denominated in foreign currencies | 11,234 | |||
|
| |||
Net Assets | $ | 9,133,831 | ||
|
| |||
Net Assets: | ||||
Class A Shares | $ | 455,351 | ||
Class C Shares | 1,728,035 | |||
Institutional Service Class Shares | 17,881 | |||
Institutional Class Shares | 6,932,564 | |||
|
| |||
Total | $ | 9,133,831 | ||
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
53
Statements of Assets and Liabilities (Unaudited) (concluded)
April 30, 2016
Aberdeen Ultra-Short | ||||
Shares Outstanding (unlimited number of shares authorized): | ||||
Class A Shares | 45,857 | |||
Class C Shares | 174,608 | |||
Institutional Service Class Shares | 1,806 | |||
Institutional Class Shares | 700,188 | |||
|
| |||
Total | 922,459 | |||
|
| |||
Net asset value and redemption price per share (Net assets by class divided by shares outstanding by class, respectively): | ||||
Class A Shares | $ | 9.93 | ||
Class C Shares(a) | $ | 9.90 | ||
Institutional Service Class Shares | $ | 9.90 | ||
Institutional Class Shares | $ | 9.90 | ||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||
Class A Shares | $ | 10.37 | ||
Maximum Sales Charge: | ||||
Class A Shares | 4.25 | % |
(a) For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year due to contingent deferred sales charge.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
54
Statements of Operations (Unaudited)
For the Six-Month Period Ended April 30, 2016
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Interest income | $ | 1,155,912 | $ | 1,239,353 | $ | 473,832 | $ | 192,194 | $ | 1,843,185 | ||||||||||
Foreign tax withholding | (45,836 | ) | (242 | ) | (4,376 | ) | (3,814 | ) | – | |||||||||||
Other income | – | – | 972 | – | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
1,110,076 | 1,239,111 | 470,428 | 188,380 | 1,843,185 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fees | 109,420 | 103,414 | 40,675 | 41,676 | 197,665 | |||||||||||||||
Administration fees | 17,507 | 11,031 | 4,068 | 5,557 | 37,208 | |||||||||||||||
Distribution fees Class A | 846 | 13 | 132 | 955 | 12,329 | |||||||||||||||
Distribution fees Class C | 2,390 | 3,007 | 383 | 1,306 | 2,993 | |||||||||||||||
Distribution fees Class R | 25 | 24 | 3,253 | – | 26 | |||||||||||||||
Sub-transfer agent and administrative service fees Class A | 43 | 2 | 84 | 86 | 672 | |||||||||||||||
Sub-transfer agent and administrative service fees Class C | 42 | 70 | 5 | 68 | 75 | |||||||||||||||
Sub-transfer agent and administrative service fees Class R | – | – | 666 | – | – | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Service Class | 9,993 | – | – | 10,720 | – | |||||||||||||||
Sub-transfer agent and administrative service fees Institutional Class | 3,933 | – | 1,214 | 256 | – | |||||||||||||||
Fund accounting fees | 5,346 | 1,335 | 497 | 706 | 4,396 | |||||||||||||||
Transfer agent fees | 35,537 | 3,439 | 7,050 | 8,779 | 29,569 | |||||||||||||||
Trustee fees | 1,940 | 927 | 345 | 489 | 3,180 | |||||||||||||||
Legal fees | 2,377 | 958 | 360 | 504 | 3,285 | |||||||||||||||
Printing fees | 11,979 | 4,000 | 4,229 | 9,559 | 11,063 | |||||||||||||||
Custodian fees | 43,491 | 8,004 | 13,204 | 18,392 | 3,371 | |||||||||||||||
Registration and filing fees | 30,577 | 27,572 | 31,105 | 26,768 | 27,432 | |||||||||||||||
Audit fees | 20,139 | 20,139 | 20,140 | 20,139 | 18,648 | |||||||||||||||
Other | 14,161 | 4,027 | 5,248 | 4,997 | 7,944 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before reimbursed/waived expenses | 309,746 | 187,962 | 132,658 | 150,957 | 359,856 | |||||||||||||||
Interest expense (Note 9) | 1,792 | – | – | – | – | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total operating expenses before reimbursed/waived expenses | 311,538 | 187,962 | 132,658 | 150,957 | 359,856 | |||||||||||||||
Expenses reimbursed | (143,261 | ) | (60,820 | ) | (82,381 | ) | (78,849 | ) | (55,477 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 168,277 | 127,142 | 50,277 | 72,108 | 304,379 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income | 941,799 | 1,111,969 | 420,151 | 116,272 | 1,538,806 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||||||||||||||||||
Realized gain/(loss) on investment transactions | (1,650,392 | ) | (1,051,764 | ) | (469,701 | ) | (368,658 | ) | 15,075 | |||||||||||
Realized gain/(loss) on futures contracts | (20,219 | ) | – | – | (41,699 | ) | – | |||||||||||||
Realized gain/(loss) on foreign currency transactions | (892,612 | ) | 79,114 | (152,333 | ) | 119,409 | – | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain/(loss) from investments, futures contracts, swaps and foreign currency transactions | (2,563,223 | ) | (972,650 | ) | (622,034 | ) | (290,948 | ) | 15,075 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) on investment transactions | 1,657,011 | 1,817,553 | 961,169 | 874,852 | 392,580 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) on futures contracts | 20,078 | – | – | (9,400 | ) | – | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on translation of assets and liabilities denominated in foreign currencies | 776,135 | (407,505 | ) | 61,036 | 15,285 | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation/(depreciation) from investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies | 2,453,224 | 1,410,048 | 1,022,205 | 880,737 | 392,580 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized/unrealized gain/(loss) from investments, futures contracts, swaps and foreign currency transactions | (109,999 | ) | 437,398 | 400,171 | 589,789 | 407,655 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 831,800 | $ | 1,549,367 | $ | 820,322 | $ | 706,061 | $ | 1,946,461 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
55
Statements of Operations (Unaudited) (concluded)
For the Six-Month Period Ended April 30, 2016
Aberdeen Ultra-Short Duration Bond Fund | ||||
INVESTMENT INCOME: | ||||
Interest income | $ | 44,857 | ||
Foreign tax withholding | (106 | ) | ||
|
| |||
44,751 | ||||
|
| |||
EXPENSES: | ||||
Investment advisory fees | 9,022 | |||
Administration fees | 3,609 | |||
Distribution fees Class A | 553 | |||
Distribution fees Class C | 6,372 | |||
Fund accounting fees | 399 | |||
Transfer agent fees | 3,018 | |||
Trustee fees | 301 | |||
Legal fees | 530 | |||
Printing fees | 3,354 | |||
Custodian fees | 3,029 | |||
Registration and filing fees | 27,219 | |||
Audit fees | 18,648 | |||
Other | 2,508 | |||
|
| |||
Total operating expenses before reimbursed/waived expenses | 78,562 | |||
Expenses reimbursed | (58,103 | ) | ||
|
| |||
Net expenses | 20,459 | |||
|
| |||
Net Investment Income | 24,292 | |||
|
| |||
REALIZED/UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: | ||||
Realized gain/(loss) on investment transactions and securities sold short (including $812,526, $0, $0, $0 and $0 capital gains tax, respectively) | (1,380 | ) | ||
Realized gain/(loss) on futures contracts | 928 | |||
|
| |||
Net realized loss from investments, futures contracts, swaps and foreign currency transactions | (452 | ) | ||
|
| |||
Net change in unrealized appreciation/(depreciation) on investment transactions | 12,009 | |||
Net change in unrealized appreciation/(depreciation) on futures contracts | (1,024 | ) | ||
|
| |||
Net change in unrealized appreciation/(depreciation) from investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies | 10,985 | |||
|
| |||
Net realized/unrealized gain from investments, futures contracts, swaps and foreign currency transactions | 10,533 | |||
|
| |||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 34,825 | ||
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
56
Statements of Changes in Net Assets
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 941,799 | $ | 8,860,617 | $ | 1,111,969 | $ | 1,697,019 | $ | 420,151 | $ | 1,284,735 | ||||||||||||
Net realized (loss) from investments, futures contracts, swaps and foreign currency transactions | (2,563,223 | ) | (22,887,120 | ) | (972,650 | ) | (1,242,397 | ) | (622,034 | ) | (6,673,474 | ) | ||||||||||||
Net change in unrealized appreciation/(depreciation) on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies | 2,453,224 | 2,903,111 | 1,410,048 | (2,373,318 | ) | 1,022,205 | 1,212,230 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | 831,800 | (11,123,392 | ) | 1,549,367 | (1,918,696 | ) | 820,322 | (4,176,509 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (7,596 | ) | (3,241 | ) | (300 | ) | (382 | ) | (1,352 | ) | – | |||||||||||||
Class C | (5,446 | ) | (82 | ) | (17,449 | ) | (304 | ) | (646 | ) | – | |||||||||||||
Class R | (93 | ) | (27 | ) | (278 | ) | (345 | ) | (16,629 | ) | – | |||||||||||||
Institutional Service Class | (107,254 | ) | (64,826 | ) | (308 | ) | (388 | ) | (102 | ) | – | |||||||||||||
Institutional Class | (331,890 | ) | (1,726,330 | ) | (871,476 | ) | (1,168,032 | ) | (119,171 | ) | – | |||||||||||||
Tax return of capital: | ||||||||||||||||||||||||
Class A | – | (6,427 | ) | – | – | – | – | |||||||||||||||||
Institutional Class | – | (1,778,188 | ) | – | – | – | – | |||||||||||||||||
Class C | – | (4,710 | ) | – | – | – | – | |||||||||||||||||
Class R | – | (80 | ) | – | – | – | – | |||||||||||||||||
Institutional Service Class | – | (93,150 | ) | – | – | – | – | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (452,279 | ) | (3,677,061 | ) | (889,811 | ) | (1,169,451 | ) | (137,900 | ) | – | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | (52,619,623 | ) | (136,620,706 | ) | 422,291 | 24,284 | (114,424 | ) | (16,269,298 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (52,240,102 | ) | (151,421,159 | ) | 1,081,847 | (3,063,863 | ) | 567,998 | (20,445,807 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 86,376,591 | 237,797,750 | 28,149,786 | 31,213,649 | 10,588,403 | 31,034,210 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 34,136,489 | $ | 86,376,591 | $ | 29,231,633 | $ | 28,149,786 | $ | 11,156,401 | $ | 10,588,403 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of period | $ | 631,253 | $ | 141,733 | $ | 594,184 | $ | 372,026 | $ | (132,693 | ) | $ | (414,944 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
57
Statements of Changes in Net Assets (continued)
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 2,456 | $ | 11,688 | $ | 2,256 | $ | 1,844 | $ | 84,953 | $ | 1,276 | ||||||||||||
Dividends reinvested | 7,596 | 9,668 | 300 | 382 | 1,352 | – | ||||||||||||||||||
Cost of shares redeemed(a) | (174,608 | ) | (34,783 | ) | (1,947 | ) | (1,491 | ) | (31,339 | ) | (11,735 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (164,556 | ) | (13,427 | ) | 609 | 735 | 54,966 | (10,459 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 56,014 | 130,000 | – | 672,910 | – | 7,000 | ||||||||||||||||||
Dividends reinvested | 3,688 | 2,278 | 17,449 | 304 | 646 | – | ||||||||||||||||||
Cost of shares redeemed(a) | (288,845 | ) | (94,335 | ) | (59,523 | ) | (9,321 | ) | (60,548 | ) | (49,278 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | (229,143 | ) | 37,943 | (42,074 | ) | 663,893 | (59,902 | ) | (42,278 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Proceeds from shares issued | – | – | – | – | 96,890 | 191,286 | ||||||||||||||||||
Dividends reinvested | 93 | 108 | 278 | 345 | 16,630 | – | ||||||||||||||||||
Cost of shares redeemed(a) | – | – | – | – | (191,921 | ) | (865,320 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | 93 | 108 | 278 | 345 | (78,401 | ) | (674,034 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 181,000 | 2,206,195 | – | – | – | – | ||||||||||||||||||
Dividends reinvested | 106,653 | 157,975 | 308 | 388 | 102 | – | ||||||||||||||||||
Cost of shares redeemed(a) | (1,349,678 | ) | (2,108,634 | ) | – | – | – | – | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | (1,062,025 | ) | 255,536 | 308 | 388 | 102 | – | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 1,657,065 | 55,863,369 | – | 3,564,492 | 908 | 2,829,692 | ||||||||||||||||||
Dividends reinvested | 326,914 | 2,585,481 | 858,055 | 1,146,714 | 118,544 | – | ||||||||||||||||||
Cost of shares redeemed(a) | (53,147,971 | ) | (195,349,716 | ) | (394,885 | ) | (5,352,283 | ) | (150,641 | ) | (18,372,219 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | (51,163,992 | ) | (136,900,866 | ) | 463,170 | (641,077 | ) | (31,189 | ) | (15,542,527 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | (52,619,623 | ) | $ | (136,620,706 | ) | $ | 422,291 | $ | 24,284 | $ | (114,424 | ) | $ | (16,269,298 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes redemption fees, if any. |
Amounts listed as “–��� are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
58
Statements of Changes in Net Assets (continued)
Aberdeen Asia Bond Fund | Aberdeen Emerging Markets Debt Fund | Aberdeen Emerging Markets Debt Local Currency Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 246 | 1,158 | 258 | 203 | 11,854 | 130 | ||||||||||||||||||
Reinvested | 798 | 976 | 36 | 42 | 204 | – | ||||||||||||||||||
Redeemed | (18,446 | ) | (3,540 | ) | (228 | ) | (171 | ) | (4,593 | ) | (1,503 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (17,402 | ) | (1,406 | ) | 66 | 74 | 7,465 | (1,373 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | 5,903 | 13,046 | – | 74,198 | – | 953 | ||||||||||||||||||
Reinvested | 393 | 232 | 2,095 | 34 | 99 | – | ||||||||||||||||||
Redeemed | (30,397 | ) | (9,540 | ) | (7,146 | ) | (1,078 | ) | (9,259 | ) | (6,351 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | (24,101 | ) | 3,738 | (5,051 | ) | 73,154 | (9,160 | ) | (5,398 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Issued | – | – | – | – | 14,413 | 24,817 | ||||||||||||||||||
Reinvested | 10 | 10 | 34 | 38 | 2,531 | – | ||||||||||||||||||
Redeemed | – | – | – | – | (28,420 | ) | (109,539 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | 10 | 10 | 34 | 38 | (11,476 | ) | (84,722 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | 18,648 | 221,151 | – | – | – | – | ||||||||||||||||||
Reinvested | 11,227 | 15,973 | 37 | 43 | 15 | – | ||||||||||||||||||
Redeemed | (140,489 | ) | (214,232 | ) | – | – | – | – | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | (110,614 | ) | 22,892 | 37 | 43 | 15 | – | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 173,286 | 5,575,054 | – | 403,185 | 133 | 345,981 | ||||||||||||||||||
Reinvested | 34,340 | 261,424 | 103,255 | 127,086 | 17,719 | – | ||||||||||||||||||
Redeemed | (5,505,898 | ) | (20,286,804 | ) | (48,224 | ) | (604,220 | ) | (21,900 | ) | (2,302,403 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | (5,298,272 | ) | (14,450,326 | ) | 55,031 | (73,949 | ) | (4,048 | ) | (1,956,422 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | (5,450,379 | ) | (14,425,092 | ) | 50,117 | (640 | ) | (17,204 | ) | (2,047,915 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
59
Statements of Changes in Net Assets (continued)
Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | Aberdeen Ultra-Short Duration Bond Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
FROM INVESTMENT ACTIVITIES: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 116,272 | $ | 424,958 | $ | 1,538,806 | $ | 3,198,764 | $ | 24,292 | $ | 51,894 | ||||||||||||
Net realized gain/(loss) from investments, futures contracts, swaps and foreign currency transactions | (290,948 | ) | (1,666,221 | ) | 15,075 | (207,822 | ) | (452 | ) | (4,093 | ) | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments, futures contracts, swaps and translation of assets and liabilities denominated in foreign currencies | 880,737 | 1,245 | 392,580 | (1,335,081 | ) | 10,985 | (21,730 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Changes in net assets resulting from operations | 706,061 | (1,240,018 | ) | 1,946,461 | 1,655,861 | 34,825 | 26,071 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (2,781 | ) | (11,375 | ) | (151,873 | ) | (288,498 | ) | (979 | ) | (1,275 | ) | ||||||||||||
Class C | (551 | ) | (3,078 | ) | (7,159 | ) | (13,999 | ) | (18 | ) | – | |||||||||||||
Class R | – | – | (150 | ) | (294 | ) | – | – | ||||||||||||||||
Institutional Service Class | (40,809 | ) | (158,896 | ) | (295 | ) | (578 | ) | (65 | ) | (119 | ) | ||||||||||||
Institutional Class | (5,182 | ) | (26,118 | ) | (1,379,329 | ) | (2,867,751 | ) | (25,129 | ) | (50,245 | ) | ||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | – | – | – | (31,102 | ) | – | – | |||||||||||||||||
Class C | – | – | – | (1,976 | ) | – | – | |||||||||||||||||
Class R | – | – | – | (34 | ) | – | – | |||||||||||||||||
Institutional Service Class | – | – | – | (56 | ) | – | – | |||||||||||||||||
Institutional Class | – | – | – | (290,135 | ) | – | – | |||||||||||||||||
Tax return of capital: | ||||||||||||||||||||||||
Class A | – | – | – | (2,701 | ) | – | – | |||||||||||||||||
Class C | – | – | – | (171 | ) | – | – | |||||||||||||||||
Class R | – | – | – | (3 | ) | – | – | |||||||||||||||||
Institutional Service Class | – | – | – | (5 | ) | – | – | |||||||||||||||||
Institutional Class | – | – | – | (24,764 | ) | – | – | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from shareholder distributions | (49,323 | ) | (199,467 | ) | (1,538,806 | ) | (3,522,067 | ) | (26,191 | ) | (51,639 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Common Stock Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions | (1,791,549 | ) | (4,305,552 | ) | 197,939 | (4,988,346 | ) | 1,128,482 | (2,236,309 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (1,134,811 | ) | (5,745,037 | ) | 605,594 | (6,854,552 | ) | 1,137,116 | (2,261,877 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 15,257,103 | 21,002,140 | 93,118,914 | 99,973,466 | 7,996,715 | 10,258,592 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of period | $ | 14,122,292 | $ | 15,257,103 | $ | 93,724,508 | $ | 93,118,914 | $ | 9,133,831 | $ | 7,996,715 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated net investment income/(loss) at end of period | $ | 40,520 | $ | (26,429 | ) | $ | (18,342 | ) | $ | (18,342 | ) | $ | (268 | ) | $ | 1,631 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
60
Statements of Changes in Net Assets (continued)
Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | Aberdeen Ultra-Short Duration Bond Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 30,262 | $ | 96,008 | $ | 1,293,666 | $ | 1,527,840 | $ | 127,501 | $ | 377,386 | ||||||||||||
Dividends reinvested | 2,151 | 8,304 | 110,009 | 244,174 | 963 | 1,270 | ||||||||||||||||||
Cost of shares redeemed(a) | (161,092 | ) | (379,939 | ) | (269,287 | ) | (1,897,534 | ) | (87,032 | ) | (74,216 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A | (128,679 | ) | (275,627 | ) | 1,134,388 | (125,520 | ) | 41,432 | 304,440 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 24,120 | 4,586 | 342,525 | 604,777 | 1,725,123 | (b) | – | |||||||||||||||||
Dividends reinvested | 518 | 2,886 | 5,517 | 11,062 | – | – | ||||||||||||||||||
Cost of shares redeemed(a) | (14,403 | ) | (106,663 | ) | (443,846 | ) | (370,995 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C | 10,235 | (99,191 | ) | (95,804 | ) | 244,844 | 1,725,123 | – | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Dividends reinvested | – | – | 150 | 333 | – | – | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R | – | – | 150 | 333 | – | – | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 296,683 | 2,140,657 | 10,060 | – | 16,892 | 3,783 | ||||||||||||||||||
Dividends reinvested | 39,375 | 153,422 | 296 | 644 | 61 | 118 | ||||||||||||||||||
Cost of shares redeemed(a) | (2,201,144 | ) | (5,096,813 | ) | (15 | ) | (15 | ) | (16,907 | ) | (4,819 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class | (1,865,086 | ) | (2,802,734 | ) | 10,341 | 629 | 46 | (918 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Proceeds from shares issued | 325,719 | 297,735 | 444,718 | 921,676 | 998 | 27,077 | ||||||||||||||||||
Dividends reinvested | 5,179 | 26,109 | 1,009,798 | 2,414,223 | 24,227 | 50,723 | ||||||||||||||||||
Cost of shares redeemed(a) | (138,917 | ) | (1,451,844 | ) | (2,305,652 | ) | (8,444,531 | ) | (663,344 | ) | (2,617,631 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class | 191,981 | (1,128,000 | ) | (851,136 | ) | (5,108,632 | ) | (638,119 | ) | (2,539,831 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions: | $ | (1,791,549 | ) | $ | (4,305,552 | ) | $ | 197,939 | $ | (4,988,346 | ) | $ | 1,128,482 | $ | (2,236,309 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes redemption fees, if any. |
(b) | For the period from December 14, 2015 (commencement of operations of Class C) through April 30, 2016. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
2016 Semi-Annual Report
61
Statements of Changes in Net Assets (concluded)
Aberdeen Global Fixed Income Fund | Aberdeen Tax-Free Income Fund | Aberdeen Ultra-Short Duration Bond Fund | ||||||||||||||||||||||
Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | Six-Month Period 2016 | Year Ended October 31, 2015 | |||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Issued | 3,229 | 9,806 | 127,149 | 148,282 | 12,869 | 37,961 | ||||||||||||||||||
Reinvested | 233 | 853 | 10,780 | 23,786 | 97 | 128 | ||||||||||||||||||
Redeemed | (17,120 | ) | (39,780 | ) | (26,394 | ) | (184,867 | ) | (8,791 | ) | (7,470 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class A Shares | (13,658 | ) | (29,121 | ) | 111,535 | (12,799 | ) | 4,175 | 30,619 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class C Shares | ||||||||||||||||||||||||
Issued | 2,616 | 481 | 33,618 | 59,395 | 174,608 | (a) | – | |||||||||||||||||
Reinvested | 57 | 298 | 542 | 1,080 | – | – | ||||||||||||||||||
Redeemed | (1,533 | ) | (11,369 | ) | (43,681 | ) | (36,217 | ) | – | – | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class C Shares | 1,140 | (10,590 | ) | (9,521 | ) | 24,258 | 174,608 | – | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Class R Shares | ||||||||||||||||||||||||
Reinvested | – | – | 15 | 32 | – | – | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Class R Shares | – | – | 15 | 32 | – | – | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||
Issued | 31,484 | 219,035 | 982 | – | 1,706 | 381 | ||||||||||||||||||
Reinvested | 4,252 | 15,752 | 29 | 63 | 6 | 12 | ||||||||||||||||||
Redeemed | (235,991 | ) | (532,422 | ) | (1 | ) | (2 | ) | (1,708 | ) | (486 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Service Class Shares | (200,255 | ) | (297,635 | ) | 1,010 | 61 | 4 | (93 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||
Issued | 33,814 | 30,652 | 43,507 | 89,700 | 101 | 2,732 | ||||||||||||||||||
Reinvested | 557 | 2,675 | 98,860 | 234,881 | 2,452 | 5,122 | ||||||||||||||||||
Redeemed | (14,651 | ) | (151,061 | ) | (225,845 | ) | (823,655 | ) | (67,086 | ) | (264,051 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Institutional Class Shares | 19,720 | (117,734 | ) | (83,478 | ) | (499,074 | ) | (64,533 | ) | (256,197 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total change in shares: | (193,053 | ) | (455,080 | ) | 19,561 | (487,522 | ) | 114,254 | (225,671 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | For the period from December 14, 2015 (commencement of operations Class C) through April 30, 2016. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
62
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Financial Highlights
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia Bond Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gains/ (Losses) on Invest- ments | Total from Investment Activities | Net Invest- ment Income | Net Realized Gains | Tax Return of Capital | Total Distri- butions | Redemp- tion Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 9.75 | $ | 0.20 | $ | 0.17 | $ | 0.37 | $ | (0.10 | ) | $ | – | $ | – | $ | (0.10 | ) | $ | – | $ | 10.02 | ||||||||||||||||||
Year Ended October 31, 2015 | 10.19 | 0.39 | (0.71 | ) | (0.32 | ) | (0.04 | ) | – | (0.08 | ) | (0.12 | ) | – | 9.75 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 10.43 | 0.35 | (0.12 | ) | 0.23 | (0.14 | ) | (0.33 | ) | – | (0.47 | ) | – | 10.19 | ||||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.26 | 0.34 | (0.85 | ) | (0.51 | ) | (0.25 | ) | (0.07 | ) | – | (0.32 | ) | – | 10.43 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 10.92 | 0.23 | 0.29 | 0.52 | (0.18 | ) | – | – | (0.18 | ) | – | 11.26 | ||||||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.62 | 0.16 | 0.16 | 0.32 | (0.08 | ) | – | – | (0.08 | ) | – | 9.86 | ||||||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.10 | 0.31 | (0.71 | ) | (0.40 | ) | – | – | (0.08 | ) | (0.08 | ) | – | 9.62 | ||||||||||||||||||||||||||
Year Ended October 31, 2014 | 10.37 | 0.28 | (0.11 | ) | 0.17 | (0.11 | ) | (0.33 | ) | – | (0.44 | ) | – | 10.10 | ||||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.24 | 0.26 | (0.86 | ) | (0.60 | ) | (0.20 | ) | (0.07 | ) | – | (0.27 | ) | – | 10.37 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 10.92 | 0.17 | 0.31 | 0.48 | (0.16 | ) | – | – | (0.16 | ) | – | 11.24 | ||||||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.71 | 0.19 | 0.16 | 0.35 | (0.09 | ) | – | – | (0.09 | ) | – | 9.97 | ||||||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.16 | 0.36 | (0.70 | ) | (0.34 | ) | (0.03 | ) | – | (0.08 | ) | (0.11 | ) | – | 9.71 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 10.42 | 0.33 | (0.12 | ) | 0.21 | (0.14 | ) | (0.33 | ) | – | (0.47 | ) | – | 10.16 | ||||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.27 | 0.31 | (0.86 | ) | (0.55 | ) | (0.23 | ) | (0.07 | ) | – | (0.30 | ) | – | 10.42 | |||||||||||||||||||||||||
Period Ended October 31, 2012(i) | 10.92 | 0.22 | 0.29 | 0.51 | (0.16 | ) | – | – | (0.16 | ) | – | 11.27 | ||||||||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.74 | 0.20 | 0.17 | 0.37 | (0.10 | ) | – | – | (0.10 | ) | – | 10.01 | ||||||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.20 | 0.39 | (0.72 | ) | (0.33 | ) | (0.05 | ) | – | (0.08 | ) | (0.13 | ) | – | 9.74 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 10.43 | 0.35 | (0.10 | ) | 0.25 | (0.15 | ) | (0.33 | ) | – | (0.48 | ) | – | 10.20 | ||||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.27 | 0.34 | (0.86 | ) | (0.52 | ) | (0.25 | ) | (0.07 | ) | – | (0.32 | ) | – | 10.43 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 10.99 | 0.35 | 0.38 | 0.73 | (0.45 | ) | – | – | (0.45 | ) | – | 11.27 | ||||||||||||||||||||||||||||
Year Ended October 31, 2011 | 11.44 | 0.39 | 0.03 | 0.42 | (0.87 | ) | – | – | (0.87 | ) | – | 10.99 | ||||||||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.76 | 0.21 | 0.17 | 0.38 | (0.10 | ) | – | – | (0.10 | ) | – | 10.04 | ||||||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.22 | 0.40 | (0.70 | ) | (0.30 | ) | (0.08 | ) | – | (0.08 | ) | (0.16 | ) | – | 9.76 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 10.45 | 0.38 | (0.12 | ) | 0.26 | (0.16 | ) | (0.33 | ) | – | (0.49 | ) | – | 10.22 | ||||||||||||||||||||||||||
Year Ended October 31, 2013 | 11.27 | 0.36 | (0.84 | ) | (0.48 | ) | (0.27 | ) | (0.07 | ) | – | (0.34 | ) | – | 10.45 | |||||||||||||||||||||||||
Year Ended October 31, 2012 | 11.00 | 0.38 | 0.36 | 0.74 | (0.47 | ) | – | – | (0.47 | ) | – | 11.27 | ||||||||||||||||||||||||||||
Year Ended October 31, 2011 | 11.44 | 0.42 | 0.03 | 0.45 | (0.89 | ) | – | – | (0.89 | ) | – | 11.00 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
64
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Asia Bond Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
3.80 | % | $ | 621 | 0.97 | % | 4.18 | % | 1.61 | %(g) | 30.38 | % | |||||||||||
(3.16 | %) | 774 | 0.96 | % | 3.91 | % | 1.09 | %(h) | 93.16 | % | ||||||||||||
2.41 | % | 824 | 0.95 | % | 3.52 | % | 1.05 | % | 57.03 | % | ||||||||||||
(4.64 | %) | 1,807 | 0.95 | % | 3.18 | % | 1.03 | % | 77.93 | % | ||||||||||||
4.87 | % | 1,275 | 0.92 | % | 3.14 | % | 0.99 | % | 62.96 | % | ||||||||||||
3.41 | % | 383 | 1.71 | % | 3.41 | % | 2.37 | %(g) | 30.38 | % | ||||||||||||
(3.97 | %)(j) | 606 | 1.71 | % | 3.19 | % | 1.84 | %(h) | 93.16 | % | ||||||||||||
1.76 | %(j) | 598 | 1.70 | % | 2.77 | % | 1.80 | % | 57.03 | % | ||||||||||||
(5.46 | %)(j) | 637 | 1.70 | % | 2.39 | % | 1.78 | % | 77.93 | % | ||||||||||||
4.44 | % | 393 | 1.67 | % | 2.31 | % | 1.74 | % | 62.96 | % | ||||||||||||
3.67 | % | 10 | 1.21 | % | 3.94 | % | 1.85 | %(g) | 30.38 | % | ||||||||||||
(3.40 | %) | 10 | 1.20 | % | 3.69 | % | 1.33 | %(h) | 93.16 | % | ||||||||||||
2.14 | % | 10 | 1.20 | % | 3.25 | % | 1.31 | % | 57.03 | % | ||||||||||||
(5.04 | %) | 10 | 1.20 | % | 2.84 | % | 1.28 | % | 77.93 | % | ||||||||||||
4.76 | % | 11 | 1.17 | % | 2.97 | % | 1.24 | % | 62.96 | % | ||||||||||||
3.81 | % | 10,290 | 0.90 | % | 4.25 | % | 1.54 | %(g) | 30.38 | % | ||||||||||||
(3.21 | %) | 11,087 | 0.96 | % | 3.92 | % | 1.09 | %(h) | 93.16 | % | ||||||||||||
2.54 | %(j) | 11,377 | 0.94 | % | 3.52 | % | 1.04 | % | 57.03 | % | ||||||||||||
(4.74 | %) | 11,083 | 0.95 | % | 3.09 | % | 1.03 | % | 77.93 | % | ||||||||||||
6.93 | % | 12,449 | 0.93 | % | 3.21 | % | 0.97 | % | 62.96 | % | ||||||||||||
3.75 | % | 9,059 | 0.91 | % | 3.57 | % | 0.92 | % | 71.15 | % | ||||||||||||
3.95 | %(j) | 22,832 | 0.71 | % | 4.34 | % | 1.37 | %(g) | 30.38 | % | ||||||||||||
(2.99 | %) | 73,900 | 0.70 | % | 3.99 | % | 0.83 | %(h) | 93.16 | % | ||||||||||||
2.72 | % | 224,989 | 0.70 | % | 3.77 | % | 0.80 | % | 57.03 | % | ||||||||||||
(4.40 | %)(j) | 232,639 | 0.70 | % | 3.27 | % | 0.78 | % | 77.93 | % | ||||||||||||
7.07 | %(j) | 467,668 | 0.69 | % | 3.46 | % | 0.72 | % | 62.96 | % | ||||||||||||
3.97 | % | 646,246 | 0.66 | % | 3.84 | % | 0.67 | % | 71.15 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to 0.01% |
(h) | Includes interest expense that amounts to less than 0.01%. |
(i) | For the period from February 27, 2012 (commencement of operations) through October 31, 2012. |
(j) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
65
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Debt Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gains/ (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Total Distri- butions | Net Asset Value, End of Period | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 8.77 | $ | 0.33 | $ | 0.13 | $ | 0.46 | $ | (0.26 | ) | $ | (0.26 | ) | $ | 8.97 | ||||||||||||
Year Ended October 31, 2015 | 9.73 | 0.49 | (1.11 | ) | (0.62 | ) | (0.34 | ) | (0.34 | ) | 8.77 | |||||||||||||||||
Year Ended October 31, 2014 | 9.54 | 0.42 | 0.11 | 0.53 | (0.34 | ) | (0.34 | ) | 9.73 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.00 | 0.35 | (0.59 | ) | (0.24 | ) | (0.22 | ) | (0.22 | ) | 9.54 | |||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.76 | 0.30 | 0.14 | 0.44 | (0.24 | ) | (0.24 | ) | 8.96 | |||||||||||||||||||
Year Ended October 31, 2015 | 9.72 | 0.38 | (1.05 | ) | (0.67 | ) | (0.29 | ) | (0.29 | ) | 8.76 | |||||||||||||||||
Year Ended October 31, 2014 | 9.53 | 0.34 | 0.11 | 0.45 | (0.26 | ) | (0.26 | ) | 9.72 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.00 | 0.27 | (0.59 | ) | (0.32 | ) | (0.15 | ) | (0.15 | ) | 9.53 | |||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.77 | 0.32 | 0.13 | 0.45 | (0.25 | ) | (0.25 | ) | 8.97 | |||||||||||||||||||
Year Ended October 31, 2015 | 9.73 | 0.46 | (1.10 | ) | (0.64 | ) | (0.32 | ) | (0.32 | ) | 8.77 | |||||||||||||||||
Year Ended October 31, 2014 | 9.54 | 0.39 | 0.11 | 0.50 | (0.31 | ) | (0.31 | ) | 9.73 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.00 | 0.32 | (0.58 | ) | (0.26 | ) | (0.20 | ) | (0.20 | ) | 9.54 | |||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.78 | 0.35 | 0.13 | 0.48 | (0.28 | ) | (0.28 | ) | 8.98 | |||||||||||||||||||
Year Ended October 31, 2015 | 9.74 | 0.51 | (1.11 | ) | (0.60 | ) | (0.36 | ) | (0.36 | ) | 8.78 | |||||||||||||||||
Year Ended October 31, 2014 | 9.55 | 0.44 | 0.11 | 0.55 | (0.36 | ) | (0.36 | ) | 9.74 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.00 | 0.37 | (0.58 | ) | (0.21 | ) | (0.24 | ) | (0.24 | ) | 9.55 | |||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 8.77 | 0.34 | 0.14 | 0.48 | (0.28 | ) | (0.28 | ) | 8.97 | |||||||||||||||||||
Year Ended October 31, 2015 | 9.73 | 0.52 | (1.12 | ) | (0.60 | ) | (0.36 | ) | (0.36 | ) | 8.77 | |||||||||||||||||
Year Ended October 31, 2014 | 9.54 | 0.47 | 0.08 | 0.55 | (0.36 | ) | (0.36 | ) | 9.73 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.00 | 0.37 | (0.59 | ) | (0.22 | ) | (0.24 | ) | (0.24 | ) | 9.54 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
66
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Debt Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
5.51 | % | $ | 11 | 1.19 | % | 7.75 | % | 1.62 | % | 26.63 | % | |||||||||||
(6.41 | %) | 10 | 1.17 | %(g) | 5.39 | % | 1.65 | %(g) | 64.60 | % | ||||||||||||
5.64 | % | 10 | 1.15 | % | 4.35 | % | 1.85 | % | 60.31 | % | ||||||||||||
(2.43 | %) | 10 | 1.15 | % | 3.58 | % | 2.57 | % | 55.26 | % | ||||||||||||
5.17 | % | 619 | 1.90 | % | 7.05 | % | 2.37 | % | 26.63 | % | ||||||||||||
(6.98 | %) | 650 | 1.90 | %(g) | 4.29 | % | 2.38 | %(g) | 64.60 | % | ||||||||||||
4.83 | %(h) | 10 | 1.89 | % | 3.60 | % | 2.60 | % | 60.31 | % | ||||||||||||
(3.20 | %)(h) | 10 | 1.90 | % | 2.83 | % | 3.32 | % | 55.26 | % | ||||||||||||
5.41 | % | 10 | 1.40 | % | 7.63 | % | 1.84 | % | 26.63 | % | ||||||||||||
(6.60 | %) | 10 | 1.40 | %(g) | 5.09 | % | 1.88 | %(g) | 64.60 | % | ||||||||||||
5.37 | % | 10 | 1.40 | % | 4.10 | % | 2.10 | % | 60.31 | % | ||||||||||||
(2.66 | %) | 10 | 1.40 | % | 3.34 | % | 2.82 | % | 55.26 | % | ||||||||||||
5.70 | % | 10 | 0.90 | % | 8.15 | % | 1.34 | % | 26.63 | % | ||||||||||||
(6.22 | %)(h) | 10 | 0.90 | %(g) | 5.62 | % | 1.38 | %(g) | 64.60 | % | ||||||||||||
5.80 | %(h) | 10 | 0.90 | % | 4.60 | % | 1.60 | % | 60.31 | % | ||||||||||||
(2.11 | %)(h) | 10 | 0.90 | % | 3.83 | % | 2.32 | % | 55.26 | % | ||||||||||||
5.71 | % | 28,581 | 0.90 | % | 8.09 | % | 1.34 | % | 26.63 | % | ||||||||||||
(6.23 | %) | 27,471 | 0.90 | %(g) | 5.71 | % | 1.38 | %(g) | 64.60 | % | ||||||||||||
5.91 | % | 31,173 | 0.90 | % | 4.79 | % | 1.60 | % | 60.31 | % | ||||||||||||
(2.21 | %) | 9,742 | 0.90 | % | 3.81 | % | 2.32 | % | 55.26 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | Includes interest expense that amounts to less than 0.01%. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
67
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Debt Local Currency Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Net Realized Gains | Tax Return of Capital | Total Distri- butions | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 7.02 | $ | 0.28 | $ | 0.27 | $ | 0.55 | $ | (0.09 | ) | $ | – | $ | – | $ | (0.09 | ) | $ | 7.48 | ||||||||||||||||
Year Ended October 31, 2015 | 8.73 | 0.50 | (2.21 | ) | (1.71 | ) | – | – | – | – | 7.02 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 9.15 | 0.50 | (0.82 | ) | (0.32 | ) | (0.10 | ) | – | – | (0.10 | ) | 8.73 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 9.65 | 0.44 | (0.79 | ) | (0.35 | ) | (0.15 | ) | – | – | (0.15 | ) | 9.15 | |||||||||||||||||||||||
Year Ended October 31, 2012 | 9.30 | 0.49 | 0.15 | 0.64 | (0.05 | ) | (0.10 | ) | (0.14 | ) | (0.29 | ) | 9.65 | |||||||||||||||||||||||
Period Ended October 31, 2011(g) | 10.00 | 0.21 | (0.77 | ) | (0.56 | ) | (0.07 | ) | (0.03 | ) | (0.04 | ) | (0.14 | ) | 9.30 | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 6.91 | 0.25 | 0.25 | 0.50 | (0.07 | ) | – | – | (0.07 | ) | 7.34 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 8.63 | 0.48 | (2.20 | ) | (1.72 | ) | – | – | – | – | 6.91 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 9.11 | 0.44 | (0.83 | ) | (0.39 | ) | (0.09 | ) | – | – | (0.09 | ) | 8.63 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 9.63 | 0.37 | (0.78 | ) | (0.41 | ) | (0.11 | ) | – | – | (0.11 | ) | 9.11 | |||||||||||||||||||||||
Year Ended October 31, 2012 | 9.28 | 0.42 | 0.14 | 0.56 | (0.01 | ) | (0.10 | ) | (0.10 | ) | (0.21 | ) | 9.63 | |||||||||||||||||||||||
Period Ended October 31, 2011(g) | 10.00 | 0.18 | (0.77 | ) | (0.59 | ) | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.13 | ) | 9.28 | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 6.96 | 0.27 | 0.26 | 0.53 | (0.09 | ) | – | – | (0.09 | ) | 7.40 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 8.67 | 0.52 | (2.23 | ) | (1.71 | ) | – | – | – | – | 6.96 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 9.13 | 0.47 | (0.84 | ) | (0.37 | ) | (0.09 | ) | – | – | (0.09 | ) | 8.67 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 9.64 | 0.40 | (0.78 | ) | (0.38 | ) | (0.13 | ) | – | – | (0.13 | ) | 9.13 | |||||||||||||||||||||||
Year Ended October 31, 2012 | 9.30 | 0.44 | 0.18 | 0.62 | (0.04 | ) | (0.10 | ) | (0.14 | ) | (0.28 | ) | 9.64 | |||||||||||||||||||||||
Period Ended October 31, 2011(g) | 10.00 | 0.20 | (0.77 | ) | (0.57 | ) | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.13 | ) | 9.30 | |||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 7.07 | 0.30 | 0.26 | 0.56 | (0.09 | ) | – | – | (0.09 | ) | 7.54 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 8.75 | 0.59 | (2.27 | ) | (1.68 | ) | – | – | – | – | 7.07 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 9.17 | 0.53 | (0.84 | ) | (0.31 | ) | (0.11 | ) | – | – | (0.11 | ) | 8.75 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 9.65 | 0.47 | (0.79 | ) | (0.32 | ) | (0.16 | ) | – | – | (0.16 | ) | 9.17 | |||||||||||||||||||||||
Year Ended October 31, 2012 | 9.30 | 0.51 | 0.15 | 0.66 | (0.06 | ) | (0.10 | ) | (0.15 | ) | (0.31 | ) | 9.65 | |||||||||||||||||||||||
Period Ended October 31, 2011(g) | 10.00 | 0.22 | (0.77 | ) | (0.55 | ) | (0.08 | ) | (0.03 | ) | (0.04 | ) | (0.15 | ) | 9.30 | |||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 7.08 | 0.29 | 0.26 | 0.55 | (0.09 | ) | – | – | (0.09 | ) | 7.54 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 8.75 | 0.55 | (2.22 | ) | (1.67 | ) | – | – | – | – | 7.08 | |||||||||||||||||||||||||
Year Ended October 31, 2014 | 9.17 | 0.53 | (0.84 | ) | (0.31 | ) | (0.11 | ) | – | – | (0.11 | ) | 8.75 | |||||||||||||||||||||||
Year Ended October 31, 2013 | 9.65 | 0.47 | (0.79 | ) | (0.32 | ) | (0.16 | ) | – | – | (0.16 | ) | 9.17 | |||||||||||||||||||||||
Year Ended October 31, 2012 | 9.31 | 0.51 | 0.14 | 0.65 | (0.06 | ) | (0.10 | ) | (0.15 | ) | (0.31 | ) | 9.65 | |||||||||||||||||||||||
Period Ended October 31, 2011(g) | 10.00 | 0.23 | (0.77 | ) | (0.54 | ) | (0.08 | ) | (0.03 | ) | (0.04 | ) | (0.15 | ) | 9.31 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts listed as “–” are $0 or round to $0.
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
68
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Emerging Markets Debt Local Currency Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (Net of Reimbursements/Waivers) to Average Net Assets (d) | Ratio of Net Investment Income to Average Net Assets (d) | Ratio of Expenses (Prior to Reimbursements/Waivers) to Average Net Assets (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
7.99 | % | $ | 173 | 1.31 | % | 8.36 | % | 2.91 | % | 20.66 | % | |||||||||||
(19.59 | %) | 110 | 1.32 | % | 6.44 | % | 2.31 | % | 58.38 | % | ||||||||||||
(3.53 | %) | 148 | 1.19 | % | 5.70 | % | 1.65 | % | 46.26 | % | ||||||||||||
(3.77 | %) | 678 | 1.22 | % | 4.61 | % | 1.63 | % | 86.05 | % | ||||||||||||
7.05 | % | 528 | 1.17 | % | 5.25 | % | 2.10 | % | 74.49 | % | ||||||||||||
(5.60 | %) | 76 | 1.15 | % | 4.50 | % | 2.07 | % | 34.36 | % | ||||||||||||
7.39 | % | 67 | 1.90 | % | 7.28 | % | 3.51 | % | 20.66 | % | ||||||||||||
(19.93 | %) | 126 | 1.91 | % | 6.30 | % | 2.90 | % | 58.38 | % | ||||||||||||
(4.28 | %) | 204 | 1.90 | % | 5.03 | % | 2.37 | % | 46.26 | % | ||||||||||||
(4.38 | %) | 331 | 1.90 | % | 3.88 | % | 2.31 | % | 86.05 | % | ||||||||||||
6.13 | % | 274 | 1.90 | % | 4.49 | % | 2.83 | % | 74.49 | % | ||||||||||||
(5.94 | %) | 344 | 1.90 | % | 3.80 | % | 2.80 | % | 34.36 | % | ||||||||||||
7.71 | % | 1,373 | 1.50 | % | 8.04 | % | 3.10 | % | 20.66 | % | ||||||||||||
(19.72 | %) | 1,371 | 1.64 | % | 6.69 | % | 2.63 | % | 58.38 | % | ||||||||||||
(4.04 | %) | 2,443 | 1.65 | % | 5.34 | % | 2.11 | % | 46.26 | % | ||||||||||||
(4.06 | %) | 2,521 | 1.63 | % | 4.26 | % | 2.04 | % | 86.05 | % | ||||||||||||
6.79 | % | 1,292 | 1.65 | % | 4.67 | % | 2.58 | % | 74.49 | % | ||||||||||||
(5.73 | %) | 9 | 1.40 | % | 4.11 | % | 2.33 | % | 34.36 | % | ||||||||||||
8.16 | % | 8 | 0.90 | % | 8.86 | % | 2.50 | % | 20.66 | % | ||||||||||||
(19.20 | %) | 8 | 0.91 | % | 7.55 | % | 1.90 | % | 58.38 | % | ||||||||||||
(3.36 | %) | 9 | 0.90 | % | 6.00 | % | 1.37 | % | 46.26 | % | ||||||||||||
(3.39 | %) | 10 | 0.90 | % | 4.87 | % | 1.31 | % | 86.05 | % | ||||||||||||
7.26 | % | 10 | 0.90 | % | 5.49 | % | 1.83 | % | 74.49 | % | ||||||||||||
(5.54 | %) | 9 | 0.90 | % | 4.60 | % | 1.83 | % | 34.36 | % | ||||||||||||
8.00 | % | 9,535 | 0.90 | % | 8.30 | % | 2.52 | % | 20.66 | % | ||||||||||||
(19.09 | %)(h) | 8,974 | 0.91 | % | 6.98 | % | 1.90 | % | 58.38 | % | ||||||||||||
(3.36 | %)(h) | 28,229 | 0.90 | % | 6.01 | % | 1.37 | % | 46.26 | % | ||||||||||||
(3.39 | %)(h) | 48,763 | 0.90 | % | 4.91 | % | 1.31 | % | 86.05 | % | ||||||||||||
7.15 | %(h) | 28,411 | 0.90 | % | 5.49 | % | 1.83 | % | 74.49 | % | ||||||||||||
(5.54 | %) | 30,325 | 0.90 | % | 4.67 | % | 1.82 | % | 34.36 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from May 2, 2011 (commencement of operations) through October 31, 2011. |
(h) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
69
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Fixed Income Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Total Distri- butions | Redemp- tion Fees | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 9.41 | $ | 0.07 | $ | 0.43 | $ | 0.50 | $ | (0.03 | ) | $ | (0.03 | ) | $ | – | $ | 9.88 | ||||||||||||||
Year Ended October 31, 2015 | 10.12 | 0.22 | (0.84 | ) | (0.62 | ) | (0.09 | ) | (0.09 | ) | – | 9.41 | ||||||||||||||||||||
Year Ended October 31, 2014 | 10.37 | 0.24 | (0.23 | ) | 0.01 | (0.26 | ) | (0.26 | ) | – | 10.12 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.61 | 0.14 | (0.38 | ) | (0.24 | ) | – | – | – | 10.37 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.50 | 0.17 | 0.19 | 0.36 | (0.25 | ) | (0.25 | ) | – | 10.61 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.89 | 0.22 | (0.10 | ) | 0.12 | (0.51 | ) | (0.51 | ) | – | 10.50 | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.30 | 0.04 | 0.43 | 0.47 | (0.02 | ) | (0.02 | ) | – | 9.75 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 10.07 | 0.14 | (0.83 | ) | (0.69 | ) | (0.08 | ) | (0.08 | ) | – | 9.30 | ||||||||||||||||||||
Year Ended October 31, 2014 | 10.23 | 0.16 | (0.23 | ) | (0.07 | ) | (0.09 | ) | (0.09 | ) | – | 10.07 | ||||||||||||||||||||
Year Ended October 31, 2013 | 10.55 | 0.06 | (0.38 | ) | (0.32 | ) | – | – | – | 10.23 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.44 | 0.09 | 0.21 | 0.30 | (0.19 | ) | (0.19 | ) | – | 10.55 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.84 | 0.14 | (0.10 | ) | 0.04 | (0.44 | ) | (0.44 | ) | – | 10.44 | |||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.42 | 0.08 | 0.43 | 0.51 | (0.03 | ) | (0.03 | ) | – | 9.90 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 10.12 | 0.22 | (0.83 | ) | (0.61 | ) | (0.09 | ) | (0.09 | ) | – | 9.42 | ||||||||||||||||||||
Year Ended October 31, 2014 | 10.39 | 0.25 | (0.24 | ) | 0.01 | (0.28 | ) | (0.28 | ) | – | 10.12 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.62 | 0.15 | (0.38 | ) | (0.23 | ) | – | – | – | 10.39 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.51 | 0.18 | 0.19 | 0.37 | (0.26 | ) | (0.26 | ) | – | 10.62 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.90 | 0.24 | (0.09 | ) | 0.15 | (0.54 | ) | (0.54 | ) | – | 10.51 | |||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.46 | 0.09 | 0.44 | 0.53 | (0.04 | ) | (0.04 | ) | – | 9.95 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 10.15 | 0.25 | (0.84 | ) | (0.59 | ) | (0.10 | ) | (0.10 | ) | – | 9.46 | ||||||||||||||||||||
Year Ended October 31, 2014 | 10.43 | 0.27 | (0.24 | ) | 0.03 | (0.31 | ) | (0.31 | ) | – | 10.15 | |||||||||||||||||||||
Year Ended October 31, 2013 | 10.64 | 0.17 | (0.38 | ) | (0.21 | ) | – | – | – | 10.43 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.52 | 0.17 | 0.23 | 0.40 | (0.28 | ) | (0.28 | ) | – | 10.64 | ||||||||||||||||||||||
Year Ended October 31, 2011 | 10.91 | 0.25 | (0.10 | ) | 0.15 | (0.54 | ) | (0.54 | ) | – | 10.52 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts | listed as “–” are $0 or round to $0. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
70
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Global Fixed Income Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net Investment Income to Average Net Assets(d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
5.35 | %(g) | $ | 733 | 1.12% | 1.60 | % | 2.25 | % | 67.17 | % | ||||||||||||
(6.13 | %)(g) | 826 | 1.11% | 2.26 | % | 2.06 | % | 173.93 | % | |||||||||||||
0.05 | %(g) | 1,183 | 1.10% | 2.27 | % | 1.71 | % | 183.14 | % | |||||||||||||
(2.26 | %) | 1,888 | 1.16% | 1.32 | % | 1.64 | % | 208.61 | % | |||||||||||||
3.56 | % | 2,781 | 1.21% | 1.61 | % | 1.51 | % | 135.98 | % | |||||||||||||
1.34 | % | 3,172 | 1.22% | 2.13 | % | 1.38 | % | 199.69 | % | |||||||||||||
5.07 | % | 274 | 1.85% | 0.85 | % | 3.03 | % | 67.17 | % | |||||||||||||
(6.86 | %) | 251 | 1.85% | 1.51 | % | 2.80 | % | 173.93 | % | |||||||||||||
(0.70 | %) | 378 | 1.85% | 1.54 | % | 2.46 | % | 183.14 | % | |||||||||||||
(3.03 | %) | 518 | 1.89% | 0.59 | % | 2.37 | % | 208.61 | % | |||||||||||||
2.90 | % | 967 | 1.95% | 0.86 | % | 2.25 | % | 135.98 | % | |||||||||||||
0.51 | % | 1,060 | 1.95% | 1.38 | % | 2.11 | % | 199.69 | % | |||||||||||||
5.46 | % | 11,427 | 1.04% | 1.68 | % | 2.17 | % | 67.17 | % | |||||||||||||
(6.02 | %) | 12,761 | 1.03% | 2.33 | % | 1.98 | % | 173.93 | % | |||||||||||||
0.07 | % | 16,724 | 1.01% | 2.39 | % | 1.62 | % | 183.14 | % | |||||||||||||
(2.17 | %) | 19,547 | 1.05% | 1.44 | % | 1.53 | % | 208.61 | % | |||||||||||||
3.64 | % | 25,168 | 1.13% | 1.69 | % | 1.42 | % | 135.98 | % | |||||||||||||
1.58 | % | 31,156 | 0.99% | 2.33 | % | 1.31 | % | 199.69 | % | |||||||||||||
5.58 | % | 1,688 | 0.85% | 1.83 | % | 2.01 | % | 67.17 | % | |||||||||||||
(5.88 | %) | 1,419 | 0.85% | 2.56 | % | 1.80 | % | 173.93 | % | |||||||||||||
0.25 | % | 2,717 | 0.85% | 2.63 | % | 1.46 | % | 183.14 | % | |||||||||||||
(1.97 | %) | 1,556 | 0.87% | 1.65 | % | 1.37 | % | 208.61 | % | |||||||||||||
3.93 | % | 850 | 0.95% | 1.68 | % | 1.25 | % | 135.98 | % | |||||||||||||
1.60 | % | 38 | 0.95 | % | 2.35 | % | 1.11 | % | 199.69 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
2016 Semi-Annual Report
71
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Tax-Free Income Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Net Realized Gains | Tax Return of Capital | Total Distri- butions | Net Asset Value, End of Period | ||||||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 10.19 | $ | 0.16 | $ | 0.04 | $ | 0.20 | $ | (0.16 | ) | $ | – | $ | – | $ | (0.16 | ) | $ | 10.23 | ||||||||||||||||
Year Ended October 31, 2015 | 10.38 | 0.32 | (0.16 | ) | 0.16 | (0.32 | ) | (0.03 | ) | – | (0.35 | ) | 10.19 | |||||||||||||||||||||||
Year Ended October 31, 2014 | 10.24 | 0.32 | 0.29 | 0.61 | (0.32 | ) | (0.15 | ) | – | (0.47 | ) | 10.38 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 10.86 | 0.32 | (0.53 | ) | (0.21 | ) | (0.32 | ) | (0.09 | ) | – | (0.41 | ) | 10.24 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.32 | 0.34 | 0.55 | 0.89 | (0.34 | ) | (0.01 | ) | – | (0.35 | ) | 10.86 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 10.37 | 0.35 | (0.03 | ) | 0.32 | (0.35 | ) | (0.02 | ) | – | (0.37 | ) | 10.32 | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.18 | 0.12 | 0.04 | 0.16 | (0.12 | ) | – | – | (0.12 | ) | 10.22 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.37 | 0.24 | (0.16 | ) | 0.08 | (0.24 | ) | (0.03 | ) | – | (0.27 | ) | 10.18 | |||||||||||||||||||||||
Year Ended October 31, 2014 | 10.23 | 0.24 | 0.29 | 0.53 | (0.24 | ) | (0.15 | ) | – | (0.39 | ) | 10.37 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 10.85 | 0.25 | (0.54 | ) | (0.29 | ) | (0.24 | ) | (0.09 | ) | – | (0.33 | ) | 10.23 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.31 | 0.26 | 0.55 | 0.81 | (0.26 | ) | (0.01 | ) | – | (0.27 | ) | 10.85 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 10.34 | 0.27 | (0.01 | ) | 0.26 | (0.27 | ) | (0.02 | ) | – | (0.29 | ) | 10.31 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.20 | 0.14 | 0.05 | 0.19 | (0.15 | ) | – | – | (0.15 | ) | 10.24 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.40 | 0.29 | (0.17 | ) | 0.12 | (0.29 | ) | (0.03 | ) | – | (0.32 | ) | 10.20 | |||||||||||||||||||||||
Year Ended October 31, 2014 | 10.25 | 0.30 | 0.30 | 0.60 | (0.30 | ) | (0.15 | ) | – | (0.45 | ) | 10.40 | ||||||||||||||||||||||||
Period Ended October 31, 2013(g) | 10.72 | 0.20 | (0.47 | ) | (0.27 | ) | (0.20 | ) | – | – | (0.20 | ) | 10.25 | |||||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.20 | 0.17 | 0.04 | 0.21 | (0.17 | ) | – | – | (0.17 | ) | 10.24 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.40 | 0.34 | (0.17 | ) | 0.17 | (0.34 | ) | (0.03 | ) | – | (0.37 | ) | 10.20 | |||||||||||||||||||||||
Year Ended October 31, 2014 | 10.25 | 0.35 | 0.30 | 0.65 | (0.35 | ) | (0.15 | ) | – | (0.50 | ) | 10.40 | ||||||||||||||||||||||||
Period Ended October 31, 2013(g) | 10.72 | 0.23 | (0.47 | ) | (0.24 | ) | (0.23 | ) | – | – | (0.23 | ) | 10.25 | |||||||||||||||||||||||
Institutional Class Shares(h) | ||||||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 10.20 | 0.17 | 0.04 | 0.21 | (0.17 | ) | – | – | (0.17 | ) | 10.24 | |||||||||||||||||||||||||
Year Ended October 31, 2015 | 10.40 | 0.34 | (0.17 | ) | 0.17 | (0.34 | ) | (0.03 | ) | – | (0.37 | ) | 10.20 | |||||||||||||||||||||||
Year Ended October 31, 2014 | 10.25 | 0.35 | 0.30 | 0.65 | (0.35 | ) | (0.15 | ) | – | (0.50 | ) | 10.40 | ||||||||||||||||||||||||
Year Ended October 31, 2013 | 10.87 | 0.35 | (0.53 | ) | (0.18 | ) | (0.35 | ) | (0.09 | ) | – | (0.44 | ) | 10.25 | ||||||||||||||||||||||
Year Ended October 31, 2012 | 10.33 | 0.37 | 0.55 | 0.92 | (0.37 | ) | (0.01 | ) | – | (0.38 | ) | 10.87 | ||||||||||||||||||||||||
Year Ended October 31, 2011 | 10.37 | 0.37 | (0.02 | ) | 0.35 | (0.37 | ) | (0.02 | ) | – | (0.39 | ) | 10.33 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
Amounts | listed as “–” are $0 or round to $0. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
72
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Tax-Free Income Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||||
1.94 | % | $ | 10,253 | 0.88 | % | 3.08 | % | 1.00 | % | 3.88 | % | |||||||||||
1.56 | % | 9,073 | 0.88 | % | 3.09 | % | 1.01 | % | 4.85 | % | ||||||||||||
6.12 | % | 9,379 | 0.87 | % | 3.14 | % | 1.00 | % | 5.58 | % | ||||||||||||
(1.93 | %) | 9,477 | 0.88 | % | 3.07 | % | 0.98 | % | 6.11 | % | ||||||||||||
8.74 | % | 11,416 | 0.94 | % | 3.18 | % | 0.94 | % | 13.27 | % | ||||||||||||
3.20 | % | 10,200 | 0.94 | % | 3.44 | % | 0.94 | % | 11.48 | % | ||||||||||||
1.58 | % | 784 | 1.62 | % | 2.40 | % | 1.77 | % | 3.88 | % | ||||||||||||
0.82 | % | 878 | 1.62 | % | 2.37 | % | 1.75 | % | 4.85 | % | ||||||||||||
5.34 | % | 643 | 1.62 | % | 2.39 | % | 1.75 | % | 5.58 | % | ||||||||||||
(2.66 | %) | 788 | 1.62 | % | 2.31 | % | 1.73 | % | 6.11 | % | ||||||||||||
7.95 | % | 2,410 | 1.68 | % | 2.43 | % | 1.68 | % | 13.27 | % | ||||||||||||
2.64 | % | 2,069 | 1.68 | % | 2.69 | % | 1.68 | % | 11.48 | % | ||||||||||||
1.83 | % | 11 | 1.12 | % | 2.83 | % | 1.24 | % | 3.88 | % | ||||||||||||
1.24 | % | 10 | 1.12 | % | 2.85 | % | 1.25 | % | 4.85 | % | ||||||||||||
5.96 | % | 10 | 1.12 | % | 2.89 | % | 1.25 | % | 5.58 | % | ||||||||||||
(2.53 | %) | 10 | 1.12 | % | 2.82 | % | 1.27 | % | 6.11 | % | ||||||||||||
2.09 | % | 28 | 0.62 | % | 3.34 | % | 0.74 | % | 3.88 | % | ||||||||||||
1.74 | % | 18 | 0.62 | % | 3.35 | % | 0.75 | % | 4.85 | % | ||||||||||||
6.49 | % | 17 | 0.62 | % | 3.39 | % | 0.75 | % | 5.58 | % | ||||||||||||
(2.19 | %) | 10 | 0.62 | % | 3.32 | % | 0.77 | % | 6.11 | % | ||||||||||||
2.08 | % | 82,648 | 0.62 | % | 3.34 | % | 0.74 | % | 3.88 | % | ||||||||||||
1.72 | % | 83,140 | 0.62 | % | 3.35 | % | 0.75 | % | 4.85 | % | ||||||||||||
6.49 | % | 89,924 | 0.62 | % | 3.38 | % | 0.75 | % | 5.58 | % | ||||||||||||
(1.67 | %) | 93,692 | 0.62 | % | 3.32 | % | 0.72 | % | 6.11 | % | ||||||||||||
9.02 | % | 104,318 | 0.68 | % | 3.43 | % | 0.68 | % | 13.27 | % | ||||||||||||
3.57 | % | 102,304 | 0.68 | % | 3.69 | % | 0.68 | % | 11.48 | % |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from February 25, 2013 (commencement of operations) through October 31, 2013. |
(h) | Formerly Class D shares. |
2016 Semi-Annual Report
73
Financial Highlights (continued)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Ultra-Short Duration Bond Fund
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Invest- ments | Total from Invest- ment Activities | Net Invest- ment Income | Net Realized Gains | Total Distri- butions | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | $ | 9.92 | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | (0.02 | ) | $ | – | $ | (0.02 | ) | $ | 9.93 | ||||||||||||||
Year Ended October 31, 2015 | 9.95 | 0.04 | (0.03 | ) | 0.01 | (0.04 | ) | – | (0.04 | ) | 9.92 | |||||||||||||||||||||
Year Ended October 31, 2014 | 9.98 | 0.03 | (0.01 | ) | 0.02 | (0.03 | ) | $ | (0.02 | ) | (0.05 | ) | 9.95 | |||||||||||||||||||
Year Ended October 31, 2013 | 10.09 | 0.04 | (0.03 | ) | 0.01 | (0.04 | ) | $ | (0.08 | ) | (0.12 | ) | 9.98 | |||||||||||||||||||
Period Ended October 31, 2012(h) | 10.00 | 0.05 | 0.09 | 0.14 | (0.04 | ) | $ | (0.01 | ) | (0.05 | ) | 10.09 | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016*(g) | 10.00 | (0.01 | ) | (0.09 | ) | (0.10 | ) | – | (i) | – | – | 9.90 | ||||||||||||||||||||
Institutional Service Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.89 | 0.03 | 0.01 | 0.04 | (0.03 | ) | – | (0.03 | ) | 9.90 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 9.92 | 0.06 | (0.03 | ) | 0.03 | (0.06 | ) | – | (0.06 | ) | 9.89 | |||||||||||||||||||||
Year Ended October 31, 2014 | 9.97 | 0.05 | (0.02 | ) | 0.03 | (0.06 | ) | (0.02 | ) | (0.08 | ) | 9.92 | ||||||||||||||||||||
Year Ended October 31, 2013 | 10.07 | 0.07 | (0.02 | ) | 0.05 | (0.07 | ) | (0.08 | ) | (0.15 | ) | 9.97 | ||||||||||||||||||||
Period Ended October 31, 2012(j) | 10.00 | 0.06 | 0.07 | 0.13 | (0.06 | ) | – | (0.06 | ) | 10.07 | ||||||||||||||||||||||
Institutional Class Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2016* | 9.89 | 0.03 | 0.01 | 0.04 | (0.03 | ) | – | (0.03 | ) | 9.90 | ||||||||||||||||||||||
Year Ended October 31, 2015 | 9.92 | 0.06 | (0.03 | ) | 0.03 | (0.06 | ) | – | (0.06 | ) | 9.89 | |||||||||||||||||||||
Year Ended October 31, 2014 | 9.97 | 0.05 | (0.02 | ) | 0.03 | (0.06 | ) | (0.02 | ) | (0.08 | ) | 9.92 | ||||||||||||||||||||
Year Ended October 31, 2013 | 10.08 | 0.07 | (0.03 | ) | 0.04 | (0.07 | ) | (0.08 | ) | (0.15 | ) | 9.97 | ||||||||||||||||||||
Year Ended October 31, 2012 | 10.00 | 0.07 | 0.09 | 0.16 | (0.07 | ) | (0.01 | ) | (0.08 | ) | 10.08 | |||||||||||||||||||||
Period Ended October 31, 2011(l) | 10.00 | 0.05 | (0.01 | ) | 0.04 | (0.04 | ) | – | (0.04 | ) | 10.00 |
* | Unaudited |
(a) | Net investment income/(loss) is based on average shares outstanding during the period. |
(b) | Excludes sales charge. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. |
Amounts | listed as “–” are $0 or round to $0. |
See accompanying Notes to Financial Statements.
Semi-Annual Report 2016
74
Financial Highlights (concluded)
Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated
Aberdeen Ultra-Short Duration Bond Fund (concluded)
Ratios/Supplemental Data | ||||||||||||||||||||
Total Return (b)(c) | Net Assets at End of Period (000’s) | Ratio of Expenses (d) | Ratio of Net (d) | Ratio of Expenses (d)(e) | Portfolio Turnover (c)(f) | |||||||||||||||
0.32% | $ | 455 | 0.55 | % | 0.44 | % | 1.84 | % | 22.59 | % | ||||||||||
0.06% | 414 | 0.58 | % | 0.38 | % | 2.05 | % | 59.11 | % | |||||||||||
0.22% | 110 | 0.65 | % | 0.30 | % | 1.38 | % | 81.59 | % | |||||||||||
0.16% | 466 | 0.65 | % | 0.44 | % | 1.25 | % | 93.60 | % | |||||||||||
1.40% | 374 | 0.65 | % | 0.51 | % | 1.05 | % | 166.04 | % | |||||||||||
0.18% | 1,728 | 1.30 | % | (0.29 | %) | 2.59 | % | 22.59 | % | |||||||||||
0.44% | 18 | 0.30 | % | 0.69 | % | 1.59 | % | 22.59 | % | |||||||||||
0.31% | 18 | 0.33 | % | 0.61 | % | 1.75 | % | 59.11 | % | |||||||||||
0.27% | 19 | 0.40 | % | 0.55 | % | 1.13 | % | 81.59 | % | |||||||||||
0.51% | 26 | 0.40 | % | 0.71 | % | 1.00 | % | 93.60 | % | |||||||||||
1.28%(k) | 26 | 0.40 | % | 0.75 | % | 0.80 | % | 166.04 | % | |||||||||||
0.45% | 6,933 | 0.30 | % | 0.69 | % | 1.59 | % | 22.59 | % | |||||||||||
0.31% | 7,565 | 0.34 | % | 0.61 | % | 1.75 | % | 59.11 | % | |||||||||||
0.27% | 10,130 | 0.40 | % | 0.54 | % | 1.13 | % | 81.59 | % | |||||||||||
0.41%(k) | 13,509 | 0.40 | % | 0.69 | % | 1.00 | % | 93.60 | % | |||||||||||
1.60%(k) | 17,927 | 0.40 | % | 0.72 | % | 0.80 | % | 166.04 | % | |||||||||||
0.54% | 35,173 | 0.40 | % | 0.52 | % | 0.74 | % | 166.41 | % |
(f) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. |
(g) | For the period from December 14, 2015 (commencement of operations) through April 30, 2016. |
(h) | For the period from November 22, 2011 (commencement of operations) through October 31, 2012. |
(i) | Less than $0.005 per share. |
(j) | For the period from January 20, 2012 (commencement of operations) through October 31, 2012. |
(k) | The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments. |
(l) | For the period from November 30, 2010 (commencement of operations) to October 31, 2011. |
2016 Semi-Annual Report
75
April 30, 2016 (Unaudited)
1. Organization
Aberdeen Funds (the “Trust”) was organized as a statutory trust under the laws of the state of Delaware by a Certificate of Trust filed on September 27, 2007 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of April 30, 2016, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2016, the Trust operated twenty-five (25) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the six (6) funds listed below (each a “Fund”; collectively, the “Funds”):
- | Aberdeen Asia Bond Fund (“Asia Bond Fund”) |
- | Aberdeen Emerging Markets Debt Fund (“Emerging Markets Debt Fund”) |
- | Aberdeen Emerging Markets Debt Local Currency Fund (“Emerging Markets Debt Local Currency Fund”) |
- | Aberdeen Global Fixed Income Fund (“Global Fixed Income Fund”) |
- | Aberdeen Tax-Free Income Fund (“Tax-Free Income Fund”) |
- | Aberdeen Ultra-Short Duration Bond Fund (“Ultra-Short Duration Bond Fund”) |
The Board of Trustees of the Trust (“the Board”) approved a Plan of Liquidation for the Aberdeen High Yield Fund pursuant to which the Fund was liquidated on October 22, 2015 (the “Liquidation”). Shareholder approval of the Liquidation was not required.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Funds are maintained in U.S. Dollars.
a. | Security Valuation |
The Funds value their securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Funds’ Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.
Long-term debt and other fixed-income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider approved by the Board. Pricing services generally price debt securities assuming orderly transactions of an institutional “round lot” size, but some trades occur in smaller, “odd lot” sizes which may be executed at lower prices than institutional round lot trades. If there are no current day bids, the security is valued at the previously applied bid. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost if it represents the best approximation for fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.
Derivative instruments are generally valued according to the following procedures. Exchange traded derivatives are generally Level 1 investments and over-the-counter derivatives are generally Level 2 investments. Forward currency exchange contracts are generally valued based on the current spot exchange rates and the forward exchange rate points (ex. 1-month, 3-month) that are obtained from an approved pricing agent. Based on the actual settlement dates of the forward contracts held, an interpolated value of the forward points is combined with the spot exchange rate to derive the valuation. Futures contracts are generally valued at the most recent settlement price as of NAV determination. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). When market quotations or exchange rates are not readily available, or if the Funds’ investment adviser, Aberdeen Asset Management Inc. (the “Adviser”), concludes that such market quotations do not accurately reflect fair value, the fair value of a Fund’s assets are determined in good faith in accordance with the Valuation Procedures.
In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time (as defined below)), the security is valued at fair value as determined by the Funds’ Pricing Committee, taking into account the relevant factors and surrounding circumstances using Valuation and Liquidity Procedures approved by the Funds’ Board of Trustees. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). A security that has been fair valued by the Pricing Committee may be classified as Level 2 or Level 3 depending on the nature of the inputs.
Semi-Annual Report 2016
76
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1 measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3 measurements to valuations based upon unobservable inputs that are significant to the valuation.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
The three-level hierarchy of inputs is summarized below:
• | Level 1- quoted prices in active markets for identical investments; |
• | Level 2- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or |
• | Level 3- significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
A summary of standard inputs is listed below:
Security Type | Standard Inputs | |
Debt and other fixed-income securities | Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, credit quality, yield, and maturity. | |
Forward foreign currency contracts | Forward exchange rate quotations. | |
Swap agreements | Market information pertaining to the underlying reference assets, i.e., credit spreads, credit event probabilities, fair values, forward rates, and volatility measures. |
The following is a summary of the inputs used as of April 30, 2016 in valuing the Funds’ investments at fair value. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Please refer to the Statements of Investments for a detailed breakout of the security types:
Investments, at Value | LEVEL 1–Quoted Prices ($) | LEVEL 2–Other Significant Observable Inputs ($) | LEVEL 3–Significant Unobservable Inputs ($) | Total | ||||||||||||
Asia Bond Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Corporate Bonds | – | 17,886,966 | – | 17,886,966 | ||||||||||||
Government Bonds | – | 10,410,625 | – | 10,410,625 | ||||||||||||
Government Agencies | – | 675,540 | – | 675,540 | ||||||||||||
Repurchase Agreement | – | 1,643,000 | – | 1,643,000 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 8,032 | – | – | 8,032 | ||||||||||||
Forward Foreign Currency Exchange Contracts | – | 787,504 | – | 787,504 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (15,307 | ) | – | – | (15,307 | ) | ||||||||||
Forward Foreign Currency Exchange Contracts | – | (657,095 | ) | – | (657,095 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
(7,275 | ) | 30,746,540 | – | 30,739,265 | ||||||||||||
|
|
|
|
|
|
|
|
2016 Semi-Annual Report
77
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Investments, at Value | LEVEL 1–Quoted | LEVEL 2–Other | LEVEL 3–Significant | Total | ||||||||||||
Emerging Markets Debt Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Corporate Bonds | – | 3,330,106 | – | 3,330,106 | ||||||||||||
Government Bonds | – | 19,771,180 | – | 19,771,180 | ||||||||||||
Government Agencies | – | 5,452,607 | – | 5,452,607 | ||||||||||||
Repurchase Agreement | – | 675,000 | – | 675,000 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | 204,551 | – | 204,551 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | (553,955 | ) | – | (553,955 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
– | 28,879,489 | – | 28,879,489 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Emerging Markets Debt Local Currency Fund | �� | |||||||||||||||
Investments in Securities | ||||||||||||||||
Corporate Bonds | – | 726,055 | – | 726,055 | ||||||||||||
Government Bonds | – | 8,440,882 | – | 8,440,882 | ||||||||||||
Government Agencies | – | 1,454,547 | – | 1,454,547 | ||||||||||||
Repurchase Agreement | – | 352,000 | – | 352,000 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | 111,319 | – | 111,319 | ||||||||||||
Liabilities | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | – | (90,069 | ) | – | (90,069 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
– | 10,994,734 | – | 10,994,734 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Global Fixed Income Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Asset-Backed Securities | – | 60,800 | – | 60,800 | ||||||||||||
Commercial Mortgage-Backed Securities | – | 608,538 | – | 608,538 | ||||||||||||
Residential Mortgage-Backed Securities | – | 835,959 | – | 835,959 | ||||||||||||
Corporate Bonds | – | 2,978,529 | – | 2,978,529 | ||||||||||||
Municipal Bonds | – | 134,249 | – | 134,249 | ||||||||||||
Government Bonds | – | 5,439,438 | – | 5,439,438 | ||||||||||||
U.S. Agencies | – | 176,049 | – | 176,049 | ||||||||||||
U.S. Treasuries | – | 3,631,452 | – | 3,631,452 | ||||||||||||
Repurchase Agreement | – | 184,000 | – | 184,000 |
Semi-Annual Report 2016
78
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Investments, at Value | LEVEL 1–Quoted | LEVEL 2–Other | LEVEL 3–Significant | Total | ||||||||||||
Global Fixed Income Fund (continued) | ||||||||||||||||
Other Financial Instruments | ||||||||||||||||
Assets | ||||||||||||||||
Futures Contracts | 15,289 | – | – | 15,289 | ||||||||||||
Forward Foreign Currency Exchange Contracts | – | 52,735 | – | 52,735 | ||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | (14,342 | ) | – | – | (14,342 | ) | ||||||||||
Forward Foreign Currency Exchange Contracts | – | (47,449 | ) | – | (47,449 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
947 | 14,054,300 | – | 14,055,247 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Tax-Free Income Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Bonds | – | 91,588,973 | – | 91,588,973 | ||||||||||||
Repurchase Agreement | – | 1,019,000 | – | 1,019,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
– | 92,607,973 | – | 92,607,973 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Ultra-Short Duration Bond Fund | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Asset-Backed Securities | – | 63 | – | 63 | ||||||||||||
Corporate Bonds | – | 5,658,656 | – | 5,658,656 | ||||||||||||
U.S. Agencies | – | 1,374,603 | – | 1,374,603 | ||||||||||||
U.S. Treasuries | – | 1,673,540 | – | 1,673,540 | ||||||||||||
Commercial Paper | – | 199,992 | – | 199,992 | ||||||||||||
Repurchase Agreement | – | 225,000 | – | 225,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
– | 9,131,854 | – | 9,131,854 | |||||||||||||
|
|
|
|
|
|
|
|
For movements between the Levels within the fair value hierarchy, the Funds have adopted a policy of recognizing transfers at the end of each period. During the six-month period ended April 30, 2016, there were no transfers between Levels.
For the six-month period ended April 30, 2016, there were no significant changes to the fair valuation methodologies.
b. | Repurchase Agreements |
The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is each Fund’s policy that its custodian/counterparty segregate the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates. To the extent that any repurchase transaction exceeds one business day, the collateral is valued on a daily basis to determine its adequacy. Under the Master Repurchase Agreement, if the counterparty defaults and the value of the collateral declines, or if bankruptcy proceedings are commenced with respect to the counterparty of the security, realization of the collateral by the Funds may be delayed or limited. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on individual repurchase agreements, see the Statements of Investments.
c. | Restricted Securities |
Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the “1933 Act”). Rule 144A securities may be freely traded among certain qualified institutional investors, such as the Funds, but resale of such securities in the U.S. is permitted only in limited circumstances.
2016 Semi-Annual Report
79
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
d. | Foreign Currency Translation |
Foreign currency amounts are translated into U.S. Dollars at the current rate of exchange as of the Valuation Time to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies within the Statements of Operations.
Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by an independent pricing service.
e. | Derivative Financial Instruments |
The Funds are authorized to use derivatives to manage currency risk, credit risk, and interest rate risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the value of the contract or if the counterparty does not perform under the contract. The use of derivative instruments involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of Assets and Liabilities.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward contract”) involves an obligation to purchase and sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Forward contracts are used to manage a Fund’s currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to the benchmark. The use of forward contracts allows the separation of decision-making between markets and their currencies. The forward contract is marked-to market daily and the change in market value is recorded by a Fund as unrealized appreciation or depreciation. Forward contracts’ prices are received daily from an independent pricing provider. When the forward contract is closed, a Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. These realized and unrealized gains and losses are reported on the Statements of Operations. During the period, the Funds used forward contracts for the purposes of efficient portfolio management and managing active currency risk relative to the benchmark, the latter of which involves both hedging currency risk and adding currency risk in excess of underlying bond positions.
While a Fund may enter into forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while a Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for a Fund than if it had not engaged in any such transactions. Moreover, there may be imperfect correlation between a Fund’s portfolio holdings or securities quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent a Fund from achieving a complete hedge, which will expose the Fund to the risk of foreign exchange loss.
Forward contracts are subject to the risk that the counterparties to such contracts may default on their obligations. Since a forward foreign currency exchange contract is not guaranteed by an exchange or clearing house, a default on the contract would deprive a Fund of unrealized profits, transaction costs or the benefits of a currency hedge or force a Fund to cover its purchase or sale commitments, if any, at the market price at the time of the default.
Futures Contracts
Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities, or securities that a Fund intends to purchase, against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes; however, in those instances, the aggregate initial margin and premiums required to establish a Fund’s positions may not exceed 5% of a Fund’s net asset value after taking into account unrealized profits and unrealized losses on any such contract into which it has entered.
Upon entering into a futures contract, a 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 payment is known as “initial margin”. Subsequent payments, known as “variation margin,” are calculated each day, depending on the daily fluctuations in the fair value/market value of the underlying assets. An unrealized gain/(loss) equal to the variation margin is recognized on a daily basis. When the contract expires or is closed, the gain/(loss) is realized and is presented in the Statements of Operations as a net realized gain/(loss) on futures contracts. Futures contracts are valued daily at their last quoted sale price on the exchange on which they are traded.
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.
Semi-Annual Report 2016
80
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
During the period, futures contracts were used to manage interest rate risk and raise the efficiency of one or more Funds. The Asia Bond Fund used futures contracts specifically to manage interest rate risk in Korea as well as to hedge duration risk with respect to the U.S. Dollar denominated Asian credit allocation.
There are significant risks associated with a Fund’s use of futures contracts, including the following: (1) the success of a hedging strategy may depend on the ability of a Fund’s investment adviser and/or sub-adviser to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the movement in the price of futures contracts, interest rates and the value/market value of the securities held by a Fund; (3) there may not be a liquid secondary market for a futures contract; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts. In addition, should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss.
Swaps
Certain Funds enter into swaps to efficiently gain or hedge interest rate or currency risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset or notional principal amount. A Fund will enter into swaps only on a net basis, which means that the two payment streams are netted out, with a Fund receiving or paying, as the case may be, only the net amount of the difference between the two payments. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of a counterparty is generally limited to the net interest payment to be received by a Fund, and/or the termination value at the end of the contract. Therefore, a Fund considers the creditworthiness of each counterparty to a swap contract in evaluating potential credit risk. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying reference asset or index. A Fund records unrealized gains/(losses) on a daily basis representing the value and the current net receivable or payable relating to open swap contracts. Net amounts received or paid on the swap contract are recorded as realized gains/(losses). Fluctuations in the value of swap contracts are recorded for financial statement purposes as unrealized appreciation or depreciation of swap contracts. Realized gains/(losses) from terminated swaps are included in net realized gains/(losses) on swap contracts transactions.
Certain Funds are a party to International Swap and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain over-the-counter derivative and foreign exchange contracts, entered into by certain Funds and the counterparty. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable ISDA Master Agreement. To the extent a Fund engages in transactions under these agreements, it is subject to counterparty risk, which is described with respect to swaps both above and below.
Effective June 10, 2013, certain swaps, including interest rate swaps, must be cleared pursuant to U.S. Commodity Futures Trading Commission (“CFTC”) regulations. As a result, interest rate swaps when entered into by the Trust, can no longer be traded over-the-counter and became subject to various regulations and rules of the CFTC. Entering into swap agreements involves, to varying degrees, elements of credit, market and interest risk in excess of the amounts reported on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform and that there may be unfavorable changes in the value of the index or securities underlying the agreement. The Funds’ maximum risk of loss from counterparty risk related to swaps is the fair value of the contract. This risk is mitigated by having a master netting agreement between the Funds and the counterparties and by the posting of collateral by the counterparties to the Funds to cover the Funds’ exposure to the counterparty. A Fund must also segregate liquid assets to “cover” its obligations under the swap.
Credit Default Swaps
A credit default swap is a credit derivative contract between two counterparties. The buyer makes periodic payments to the seller, and in return receives protection if an underlying financial instrument defaults. A Fund might use credit default swap contracts to limit or to reduce risk exposure of the Fund to defaults of corporate and sovereign issues (i.e., to reduce risk when the Fund owns or has exposure to such issuers). A Fund also might use credit default swap contracts to create direct or synthetic short or long exposure to domestic or foreign corporate debt securities or certain sovereign debt securities to which the Fund is not otherwise exposed. As the seller in a credit default swap contract, a Fund would be required to pay the par (or other agreed-upon) value of a referenced debt obligation to the counterparty in the event of a default (or similar event) by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, a Fund would receive from the counterparty a periodic stream of payments over the term of the contract, provided that no event of default (or similar event) occurs. If no event of default (or similar event) occurs, a Fund would keep the stream of payments and would have no payment of obligations. As the seller in a credit default swap contract, a Fund effectively would add economic leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap. As the purchaser in a credit default swap contract, a Fund would function as the counterparty referenced in the preceding paragraph. This
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
would involve the risk that the investment might expire worthless. It also would involve credit risk that the seller may fail to satisfy its payment obligations to a Fund in the event of a default (or similar event). As the purchaser in a credit default swap contract, a Fund’s investment would generate income only in the event of an actual default (or similar event) by the issuer of the underlying obligation.
During the period, there was no credit default swap activity.
Interest Rate Swaps
Certain Funds may invest in interest rate swap contracts. A Fund uses interest rate swap contracts to manage its exposure to interest rates. Interest rate swap contracts typically represent the exchange between a Fund and a counterparty of respective commitments to make variable rate and fixed rate payments with respect to a notional amount of principal. Swap contracts may have a term of one to ten years, but typically require periodic interim settlement in cash, at which time the specified value of the variable interest rate is reset for the next settlement period. During the period that the swap contract is open, the contract is marked-to-market as the net amount due to or from a Fund in accordance with the terms of the contract based on the closing level of the relevant index or security and interest accrual through the valuation date. Changes in the value of swap contracts are recorded as unrealized gains or losses. Periodic cash settlements on interest rate swaps are recorded as realized gains or losses.
During the period, there was no interest rate swap activity.
Summary of Derivative Instruments
Certain Funds may use derivatives for various purposes as noted above. The following is a summary of the location of fair value amounts of derivatives, not accounted for as hedging instruments, as of April 30, 2016:
Location on the Statement of Assets and Liabilities | ||||
Derivative Instrument Risk Type | Asset Derivatives | Liability Derivatives | ||
Interest Rate Risk | Unrealized appreciation on futures contracts | Unrealized depreciation on futures contracts | ||
Variation margin receivable for futures contracts | Variation margin payable for futures contracts | |||
Foreign Exchange Risk | Unrealized appreciation on forward foreign currency exchange contracts | Unrealized depreciation on forward foreign currency exchange contracts |
The following is a summary of the fair value of Derivative Instruments, not accounted for as hedging instruments, as of April 30, 2016:
Asset Derivatives | ||||||||||||
Funds | Total Value at April 30, 2016 | Forward Foreign Exchange Contracts (Foreign Exchange Risk) | Futures Contracts (Interest Rate Risk) | |||||||||
Aberdeen Asia Bond Fund | $ | 795,536 | $ | 787,504 | $ | 8,032 | ||||||
Aberdeen Emerging Markets Debt Fund | 204,551 | 204,551 | – | |||||||||
Aberdeen Emerging Markets Debt Local Currency Fund | 111,319 | 111,319 | – | |||||||||
Aberdeen Global Fixed Income Fund | 68,024 | 52,735 | 15,289 |
Liabilities Derivatives | ||||||||||||
Funds | Total Value at April 30, 2016 | Forward Foreign Exchange Contracts (Foreign Exchange Risk) | Futures Contracts (Interest Rate Risk) | |||||||||
Aberdeen Asia Bond Fund | $ | 672,402 | $ | 657,095 | $ | 15,307 | ||||||
Aberdeen Emerging Markets Debt Fund | 553,955 | 553,955 | – | |||||||||
Aberdeen Emerging Markets Debt Local Currency Fund | 90,069 | 90,069 | – | |||||||||
Aberdeen Global Fixed Income Fund | 61,791 | 47,449 | 14,342 |
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Certain funds have transactions that may be subject to enforceable master netting arrangements. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by broker and derivative type, including any collateral received or pledged, is included in the following tables:
Gross Amount Not Offset in Statement of Assets & Liabilities | ||||||||||||||||||||||||||||||||
Gross Amounts of Assets | Gross Amounts of Liabilities | |||||||||||||||||||||||||||||||
Description | Financial Position | Financial Instruments | Collateral Received (1) | Net Amount (3) | Financial Position | Financial Instruments | Collateral Pledged (1) | Net Amount (3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||
Asia Bond Fund | ||||||||||||||||||||||||||||||||
Forward foreign currency (2) | ||||||||||||||||||||||||||||||||
BNP Paribas | $ | 24,694 | $ | – | $ | – | $ | 24,694 | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||
Credit Suisse | – | – | – | – | 146,581 | – | – | 146,581 | ||||||||||||||||||||||||
Deutsche Bank | – | – | – | – | 9,990 | – | – | 9,990 | ||||||||||||||||||||||||
Goldman Sachs | 45,462 | (29,343 | ) | – | 16,119 | 29,343 | (29,343 | ) | – | – | ||||||||||||||||||||||
Royal Bank of Canada | 87,076 | – | – | 87,076 | – | – | – | – | ||||||||||||||||||||||||
Standard Chartered Bank | – | – | – | – | 22,730 | – | – | 22,730 | ||||||||||||||||||||||||
State Street | 630,272 | (448,451 | ) | – | 181,821 | 448,451 | (448,451 | ) | – | – |
1. | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
2. | Includes financial instrument (forwards) which are not subject to master netting arrangement across Funds, or other another similar arrangement. |
3. | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. |
Gross Amount Not Offset in Statement of Assets & Liabilities | ||||||||||||||||||||||||||||||||
Gross Amounts of Assets | Gross Amounts of Liabilities | |||||||||||||||||||||||||||||||
Description | Financial Position | Financial Instruments | Collateral Received (1) | Net Amount (3) | Financial Position | Financial Instruments | Collateral Pledged (1) | Net Amount (3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||
Emerging Markets Debt Fund | ||||||||||||||||||||||||||||||||
Forward foreign currency (2) | ||||||||||||||||||||||||||||||||
Barclays Bank | $ | – | $ | – | $ | – | $ | – | $ | 846 | $ | – | $ | – | $ | 846 | ||||||||||||||||
Citibank | 72,487 | (66,400 | ) | – | 6,087 | 66,400 | (66,400 | ) | – | – | ||||||||||||||||||||||
Goldman Sachs | 67,643 | (67,643 | ) | – | – | 275,003 | (67,643 | ) | – | 207,360 | ||||||||||||||||||||||
JPMorgan Chase | 64,421 | (64,421 | ) | – | – | 122,806 | (64,421 | ) | – | 58,385 | ||||||||||||||||||||||
UBS | – | – | – | – | 88,900 | – | – | 88,900 |
1. | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
2. | Includes financial instrument (forwards) which are not subject to master netting arrangement across Funds, or other another similar arrangement. |
3. | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. |
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
Gross Amount Not Offset in Statement of Assets & Liabilities | ||||||||||||||||||||||||||||||||
Gross Amounts of Assets | Gross Amounts of Liabilities | |||||||||||||||||||||||||||||||
Description | Financial Position | Financial Instruments | Collateral Received (1) | Net Amount (3) | Financial Position | Financial Instruments | Collateral Pledged (1) | Net Amount (3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||
Emerging Markets Debt Local Currency Fund | ||||||||||||||||||||||||||||||||
Forward foreign currency (2) | ||||||||||||||||||||||||||||||||
Barclays Bank | $ | 2,840 | $ | (2,840 | ) | $ | – | $ | – | $ | 34,439 | $ | (2,840 | ) | $ | – | $ | 31,599 | ||||||||||||||
Citibank | 40,139 | (12,866 | ) | – | 27,273 | 12,866 | (12,866 | ) | – | – | ||||||||||||||||||||||
Goldman Sachs | 37,658 | (12,248 | ) | – | 25,410 | 12,248 | (12,248 | ) | – | – | ||||||||||||||||||||||
JPMorgan Chase | 28,294 | (17,717 | ) | – | 10,577 | 17,717 | (17,717 | ) | – | – | ||||||||||||||||||||||
UBS | 2,388 | (2,388 | ) | – | – | 12,799 | (2,388 | ) | – | 10,411 |
1. | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
2. | Includes financial instrument (forwards) which are not subject to master netting arrangement across Funds, or other another similar arrangement. |
3. | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. |
Gross Amount Not Offset in Statement of Assets & Liabilities | ||||||||||||||||||||||||||||||||
Gross Amounts of Assets | Gross Amounts of Liabilities | |||||||||||||||||||||||||||||||
Description | Financial Position | Financial Instruments | Collateral Received (1) | Net Amount (3) | Financial Position | Financial Instruments | Collateral Pledged (1) | Net Amount (3) | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||
Global Fixed Income Fund | ||||||||||||||||||||||||||||||||
Forward foreign currency (2) | ||||||||||||||||||||||||||||||||
Barclays Bank | $ | – | $ | – | $ | – | $ | – | $ | 5,763 | $ | – | $ | – | $ | 5,763 | ||||||||||||||||
Citibank | 29,751 | – | – | 29,751 | – | – | – | – | ||||||||||||||||||||||||
Deutsche Bank | 5,152 | (5,152 | ) | – | – | 17,645 | (5,152 | ) | – | 12,493 | ||||||||||||||||||||||
Goldman Sachs | 2,736 | (851 | ) | – | 1,885 | 851 | (851 | ) | – | – | ||||||||||||||||||||||
JPMorgan Chase | 13,224 | (589 | ) | – | 12,635 | 589 | (589 | ) | – | – | ||||||||||||||||||||||
Royal Bank Of Canada | 1,246 | (1,246 | ) | – | – | 17,658 | (1,246 | ) | – | 16,412 | ||||||||||||||||||||||
UBS | 626 | (626 | ) | – | – | 4,943 | (626 | ) | – | 4,317 |
1. | In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization. |
2. | Includes financial instrument (forwards) which are not subject to master netting arrangement across Funds, or other another similar arrangement. |
3. | Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. |
The following is a summary of the location of realized gain/(loss) and net change in unrealized appreciation/(depreciation) on derivatives in the Statement of Operations for the six-month period ended April 30, 2016:
Location on the Statement of Operations Derivative Instrument Risk Type | ||
Interest Rate Risk | Realized gain/(loss) on future contracts transactions | |
Net change in unrealized appreciation/(depreciation) on futures contracts | ||
Foreign Exchange Risk | Realized gain/(loss) on foreign currency transactions | |
Net change in unrealized appreciation/(depreciation) on foreign currency transactions |
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
The following is a summary of the effect of derivative instruments on the Statement of Operations for the six-month period ended April 30, 2016:
Realized Gain or (Loss) on Derivatives Recognized in the Statement of Operations | ||||||||||||
Funds | Total | Forward Foreign Exchange Contracts (Foreign Exchange Risk) | Futures Contracts (Interest Rate Risk) | |||||||||
Aberdeen Asia Bond Fund | $ | (810,680 | ) | $ | (790,461 | ) | $ | (20,219 | ) | |||
Aberdeen Emerging Markets Debt Fund | 100,821 | 100,821 | – | |||||||||
Aberdeen Emerging Markets Debt Local Currency Fund | (46,289 | ) | (46,289 | ) | – | |||||||
Aberdeen Global Fixed Income Fund | 92,729 | 134,428 | (41,699 | ) | ||||||||
Aberdeen Ultra-Short Duration Bond Fund | 928 | – | 928 |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in the Statement of Operations | ||||||||||||
Funds | Total | Forward Foreign Exchange Contracts (Foreign Exchange Risk) | Futures Contracts (Interest Rate Risk) | |||||||||
Aberdeen Asia Bond Fund | $ | 760,804 | $ | 740,726 | $ | 20,078 | ||||||
Aberdeen Emerging Markets Debt Fund | (413,818 | ) | (413,818 | ) | – | |||||||
Aberdeen Emerging Markets Debt Local Currency Fund | 49,836 | 49,836 | – | |||||||||
Aberdeen Global Fixed Income Fund | 910 | 10,310 | (9,400 | ) | ||||||||
Aberdeen Ultra-Short Duration Bond Fund | (1,024 | ) | – | (1,024 | ) |
Information about derivatives reflected as of the date of this report is generally indicative of the type of activity for the six-month period ended April 30, 2016. The table below summarizes the weighted average values of derivatives holdings by the Funds during the six-month period ended April 30, 2016.
Fund | Forward foreign exchange contracts (Average Notional Value) | Futures contracts (Average Notional Value) | ||||||
Asia Bond Fund | $ | 90,096,667 | $ | (10,216,667 | ) | |||
Emerging Markets Debt Fund | 6,668,739 | – | ||||||
Emerging Markets Debt Local Currency Fund | 3,978,413 | – | ||||||
Global Fixed Income Fund | 6,647,089 | (240,820 | ) | |||||
Ultra-Short Duration Bond Fund | – | (200,000 | ) |
f. | Credit-Linked Notes |
The Asia Bond Fund invests in credit-linked securities, which are unstructured, unleveraged pass-through vehicles to an underlying security denominated in a local currency, used for the purposes of efficiently managing access to the market and interest rate risk. For instance, the Fund may invest in credit-linked securities as a cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more traditional income producing securities are not available. Like an investment in a bond, investments in credit-linked securities represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the security. However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of payments over the term of the swap agreements provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay the counterparty the par value (or other agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and principal that the Fund would receive. A Fund’s investments in these instruments are indirectly subject to the risks associated with derivative instruments, including, among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and management risk. It is also expected that the
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
securities will be exempt from registration under the 1933 Act. Accordingly, there may be no established trading market for the securities and they may constitute illiquid investments. For the six-month period ended April 30, 2016, none of the Funds held credit-linked notes.
g. | Mortgage Dollar Rolls |
Certain Funds may invest in mortgage dollar rolls. Mortgage dollar rolls are arrangements in which a Fund would sell mortgage-backed securities for delivery in the current month and simultaneously contract to purchase substantially similar (same type, coupon, and maturity) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the mortgage-backed securities. The Fund could potentially receive gains on the difference between the current sales price and the lower price for the future purchase as well as any interest earned on the proceeds of the initial sale. At the time the Fund enters into a mortgage dollar roll, it would set aside permissible liquid assets in a segregated account to secure its obligation for the forward commitment to buy mortgage-backed securities. Depending on whether the segregated assets are cash equivalent or some other type of security, entering into mortgage dollar rolls may subject the Fund to additional interest rate sensitivity. For accounting purposes, any gain or loss is considered unrealized until the roll reaches completion. Mortgage dollar roll investments entail risks related to the potential inability of counterparties to complete the transaction, which may be heightened because of the delayed payment date. For the six-month period ended April 30, 2016, none of the Funds held mortgage dollar rolls.
h. | Security Transactions, Investment Income and Expenses |
Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate actions.
Interest income and expenses are recorded on an accrual basis. Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the relevant Funds based on net assets of each. For each of the Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses to a class is based on the total net asset value of that class’s shares in proportion to the total net assets of the relevant Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
i. | Distributions |
Distributions from net investment income, if any, are declared and paid quarterly for the Asia Bond Fund, the Emerging Markets Debt Fund, the Emerging Markets Debt Local Currency Fund and the Global Fixed Income Fund. Distributions from net investment income are declared daily and paid monthly for the Tax-Free Income Fund and the Ultra-Short Duration Bond Fund. The Funds 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 shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for foreign currencies and loss deferrals.
j. | Federal Income Taxes |
Each Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is required.
Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31 are subject to such review.
3. Agreements and Transactions with Affiliates
a. | Investment Adviser |
Under the Investment Advisory Agreement with the Trust, Aberdeen Asset Management Inc. (“Aberdeen” or the “Adviser”) manages the Funds in accordance with the policies and procedures established by the Board.
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
For services provided under the terms of the current Investment Advisory Agreement, each Fund pays the Adviser an annual management fee (as a percentage of its average daily net assets) paid monthly according to the following schedule:
Fund | Fee Schedule | |||||||
Asia Bond Fund | On all assets | 0.500% | ||||||
Emerging Markets Debt Fund | Up to $500 million | 0.750% | ||||||
On $500 million and more | 0.700% | |||||||
Emerging Markets Debt Local Currency Fund | Up to $500 million | 0.800% | ||||||
On $500 million and more | 0.750% | |||||||
Global Fixed Income Fund | Up to $500 million | 0.600% | ||||||
$500 million up to $1 billion | 0.550% | |||||||
On $1 billion and more | 0.500% | |||||||
Tax-Free Income Fund | Up to $250 million | 0.425% | ||||||
$250 million up to $1 billion | 0.375% | |||||||
On $1 billion and more | 0.355% | |||||||
Ultra-Short Duration Bond Fund | On all assets | 0.200% |
The Adviser has engaged the services of affiliates Aberdeen Asset Management Asia Limited (“AAMAL”) and Aberdeen Asset Managers Limited (“AAML”) as subadvisers (the “Subadvisers”) pursuant to subadvisory agreements. The Subadvisers manage a portion of certain Funds’ investments and have the responsibility for making all investment decisions for the portion of a Fund’s assets they manage. Pursuant to the subadvisory agreements, the Adviser pays fees to the Subadvisers, if any.
The Trust and Aberdeen have entered into a written contract (“Expense Limitation Agreement”) limiting operating expenses for all classes of the Funds from exceeding the amounts listed below. This contractual limitation may not be terminated before February 28, 2017 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees , transfer agent out-of-pocket expenses for class A shares, Class R shares and Institutional Service Class shares and extraordinary expenses.
Fund | Limit | |||
Asia Bond Fund | 0.70% | |||
Emerging Markets Debt Fund | 0.90% | |||
Emerging Markets Debt Local Currency Fund | 0.90% | |||
Global Fixed Income Fund | 0.85% | |||
Tax-Free Income Fund | 0.62% | |||
Ultra-Short Duration Bond Fund | 0.30% |
Aberdeen may request and receive reimbursement from a Fund of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement at a later date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Funds was made.
However, no reimbursement will be made for fees waived unless:
(i) the total annual expense ratio of the class making such reimbursement is less than the limit set forth above; and
(ii) the payment of such reimbursement is approved by the Board on a quarterly basis (the “Reimbursement Requirements”).
If the Board approves any changes in the waiver terms or limitations, reimbursements are only permitted to the extent that the terms of the Expense Limitation Agreement in effect at the time of the waiver are met at the time that reimbursement is approved. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by Aberdeen is not permitted.
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
As of April 30, 2016, to the extent the Reimbursement Requirements are met, the cumulative potential reimbursements for each Fund, based on expenses reimbursed by Aberdeen would be:
Fund | Amount 2013 | Amount 2014 | Amount 2015 | Amount Six Months Ended April 30, 2016 (expires 4/30/18) | Total* | |||||||||||||||
Asia Bond Fund | $ | 255,184 | $ | 205,651 | $ | 290,081 | $ | 143,261 | $ | 894,177 | ||||||||||
Emerging Markets Debt Fund | 87,131 | 141,808 | 144,411 | 60,820 | 434,170 | |||||||||||||||
Emerging Markets Debt Local Currency Fund | 112,513 | 196,473 | 182,592 | 82,381 | 573,959 | |||||||||||||||
Global Fixed Income Fund | 87,693 | 133,386 | 173,469 | 78,849 | 473,397 | |||||||||||||||
Tax-Free Income Fund | 102,515 | 134,346 | 121,485 | 55,477 | 413,823 | |||||||||||||||
Ultra-Short Duration Bond Fund | 48,992 | 98,801 | 122,286 | 58,103 | 328,182 |
* | Amounts reported are due to expire throughout the respective 3-year expiration period presented above. |
Amounts listed as “–” are $0 or round to $0.
In accordance with the Funds’ Expense Limitation Agreement and criteria, as described above, the Adviser did not recapture any expenses for which it previously reimbursed the Funds. Accordingly, at April 30, 2016, the Funds did not have liabilities payable to the Adviser for recapture of previously reimbursed expenses.
b. | Fund Administration |
Under the terms of the Fund Administration Agreement, Aberdeen provides various administrative and accounting services, including daily valuation of the Funds’ shares, preparation of financial statements, tax returns, regulatory reports, and presentation of quarterly reports to the Board. For services provided pursuant to the Fund Administration Agreement, the Trust pays Aberdeen an annual fee of 0.08% based on the Trust’s average daily net assets. The fee is then allocated proportionately among all funds within the Trust (including the Funds) in relation to the average daily net assets of each fund. This asset-based fee is subject to an annual minimum fee based on the number of funds served. Pursuant to a sub-administration agreement with Aberdeen, State Street Bank and Trust Company provides sub-administration services with respect to the Funds.
c. | Distributor and Shareholder Servicing |
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor” or “AFD”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares.
The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate AFD, as the Funds’ Distributor, for expenses associated with the distribution of certain classes of shares of the Funds of the Trust. Although actual distribution expenses may be more or less, under the Plan, the Funds of the Trust pay the Distributor an annual fee of the following amounts:
Fund | Class A Shares | Class C Shares (a) | Class R Shares (a) | |||||||||
Asia Bond Fund | 0.25% | 1.00% | 0.50% | |||||||||
Emerging Markets Debt Fund | 0.25% | 1.00% | 0.50% | |||||||||
Emerging Markets Debt Local Currency Fund | 0.25% | 1.00% | 0.50% | |||||||||
Global Fixed Income Fund | 0.25% | 1.00% | 0.50% | |||||||||
Tax-Free Income Fund | 0.25% | 1.00% | 0.50% | |||||||||
Ultra-Short Duration Bond Fund | 0.25% | 1.00% | 0.50% |
(a) | 0.25% of which is service fees. |
The Adviser or an affiliate of the Adviser may pay additional amounts from its own resources to dealers or other financial intermediaries, for aid in distribution or for aid in providing administrative services to shareholders.
Pursuant to the current Underwriting Agreement, the Distributor will also receive the proceeds of contingent deferred sales charges (“CDSCs”) of 1% imposed on certain redemptions of Class C (and up to 1% for certain Class A) shares.
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88
Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
In addition, the Distributor will re-allow to dealers 3.75% of sales charges on Class A shares of the Funds, which have a maximum front-end sales charge of 4.25%, and the Distributor or Adviser may compensate broker dealers or financial intermediaries for sales of Class C shares from its own resources at the rate of 1.00% on sales of Class C shares, which have a maximum CDSC of 1.00% (on the deferred sales charge assessed on sales within one year of purchase). For the six-month period ended April 30, 2016, AFD retained commissions of $8,530 from front-end sales charges of Class A shares and $0 from CDSC fees from Class C (and certain Class A) shares of the Funds.
d. | Administrative Services |
Under the terms of the current Administrative Services Plan, a series of the Trust is permitted to enter into Servicing Agreements with servicing organizations, such as broker-dealers, and financial institutions, which agree to provide certain administrative support services in connection with the Class A, Class R and Institutional Service Class shares of the series of the Trust (as applicable). These fees are based on an annual rate of up to 0.25% (or 0.15% under an amendment to the Administrative Services Plan that is in effect until at least February 28, 2017) of the average daily net assets of Class A, Class R and Institutional Service Class shares of each of the Funds (as applicable). The amount of expenses incurred under the terms of the Administrative Services Plan during the six-month period ended April 30, 2016 was as follows:
Fund | Amount | |||
Asia Bond Fund | $ | 7,435 | ||
Emerging Markets Debt Fund | 1 | |||
Emerging Markets Debt Local Currency Fund | 391 | |||
Global Fixed Income Fund | 7,965 | |||
Tax-Free Income Fund | 332 | |||
Ultra-Short Duration Bond Fund | – |
Amounts | listed as “–” are $0 or round to $0. |
The Funds may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. These fees may be in addition to the Rule 12b-1 fees and Administrative Services fees. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.
4. Investment Transactions
Purchases and sales of securities (excluding short-term securities) for the six-month period ended April 30, 2016, were as follows:
Fund | Purchases | Sales | ||||||
Asia Bond Fund | $ | 12,722,834 | $ | 62,332,978 | ||||
Emerging Markets Debt Fund | 7,085,319 | 7,321,594 | ||||||
Emerging Markets Debt Local Currency Fund | 2,020,627 | 2,158,075 | ||||||
Global Fixed Income Fund | 8,290,606 | 10,952,371 | ||||||
Tax-Free Income Fund | 4,242,997 | 3,540,000 | ||||||
Ultra-Short Duration Bond Fund | 2,039,275 | 1,633,789 |
5. Portfolio Investment Risks
a. | Active Trading Risk |
Certain Funds may engage in active and frequent trading of portfolio securities to achieve its investment objective. If a Fund does trade this way, it may incur increased costs, which can lower the actual return of the Fund.
b. | Asset-Backed Securities |
Like traditional fixed income securities, the value of asset-backed securities typically increases when interest rates fall and decreases when interest rates rise. Certain asset-backed securities may also be subject to the risk of prepayment.
c. | Call and Redemption Risk |
Some bonds allow the issuer to call a bond for redemption before it matures. If this happens, a Fund may be required to invest the proceeds in securities with lower yields.
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
d. | Corporate Bonds |
Corporate bonds are debt instruments issued by domestic or foreign corporations or similar entities. Corporate bonds can decline in value in response to changes in the financial condition of the issuer and involve a risk of loss in case of issuer default or insolvency.
e. | Country/Regional Focus Risk |
Significant exposure to a single country or geographical region involves increased currency, political, regulatory and other risks. Market swings in the targeted country or geographical region likely will have a greater effect on portfolio performance than they would in a more geographically diversified fund.
f. | Credit Risk |
A debt instrument’s price depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory, geopolitical, or other conditions.
g. | Derivatives Risk (including Options, Futures, and Swaps) |
Derivatives are speculative and may hurt a Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from a Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual debt securities, and there can be no assurance that the use of this strategy will be successful.
Speculative Exposure Risk – To the extent that a derivative or practice is not used as a hedge, a Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from writing uncovered call options and from speculative short sales are unlimited.
Hedged Exposure Risk – Losses generated by a derivative or practice used by a Fund for hedging purposes should be substantially offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.
Correlation Risk – A Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.
Counterparty Risk – Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.
h. | Emerging Markets Risk |
Certain Funds are subject to Emerging Markets Risk. This is a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging market countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).
i. | Extension Risk |
Principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase. Rapidly rising interest rates may cause prepayments to occur more slowly than expected, thereby lengthening the maturity of the securities held by the Fund and making their prices more sensitive to rate changes and more volatile.
j. | Foreign Government Securities Risk |
Debt securities issued by foreign governments are often supported by the full faith and credit of the foreign governments. These foreign governments may permit their subdivisions, agencies or instrumentalities to have the full faith and credit of the foreign governments. The issuer of foreign government securities may be unwilling or unable to pay interest or repay principal when due. A government entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by a number of political, economic, financial and other factors. A Fund may have limited recourse to compel payment in the event of a default. Periods of economic uncertainty may result in the illiquidity and increased price volatility of a foreign government’s debt securities. A foreign government’s default on its debt securities may cause the value of securities held by a Fund to decline significantly.
k. | Foreign Currency Exposure Risk |
The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
denominated in that foreign currency. This risk may impact the Fund more greatly to the extent the Underlying Fund does not hedge its currency risk, or hedging techniques used by the Underlying Fund are unsuccessful.
l. | Foreign Securities Risk |
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities.
Asian Risk. Parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Asian region may lead to a lack of liquidity while some countries have restricted the flow of money in and out of the country. Some countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. A Fund may be more volatile than a fund which is broadly diversified geographically.
China Risk. Concentrating investments in China and Hong Kong subjects a Fund to additional risks, and may make it significantly more volatile than geographically diverse mutual funds. Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, limitation on repatriation and differing legal standards.
m. | High-Yield Bonds and Other Lower-Rated Securities Risk |
A Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.
n. | Illiquid Securities Risk |
Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which a Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Over recent years, the capacity of dealers to make markets in fixed income securities has been outpaced by the growth in the size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.
Each Fund employs proprietary procedures and tests using third-party and internal data inputs that seek to assess and manage the liquidity of its portfolio holdings. A Fund’s procedures and tests take into account relevant market, trading and other factors, and monitor whether liquidity assessments should be adjusted based on changed market conditions. These procedures and tests are designed to assist a Fund in determining its ability to meet redemption requests in various market conditions. In light of the dynamic nature of markets, there can be no assurance that these procedures and tests will enable a Fund to ensure that it has sufficient liquidity to meet redemption requests.
o. | Impact of Large Redemptions and Purchases of Fund Shares |
Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sale of portfolio securities to cover the redemption request settle. For additional information on redemptions, please see the Statement of Changes in Net Assets.
p. | Interest Rate Risk |
A Fund’s fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in the Fund’s net assets. A Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income-securities with a greater time to maturity and/or lower coupon. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates.
q. | Market Risk |
Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in that market in which a Fund invests.
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
r. | Mortgage-Related Securities Risk |
Certain Funds may invest in mortgage-related securities. Rising interest rates may cause an issuer to exercise its right to pay principal later than expected which tends to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a fund that holds mortgage-related securities may exhibit additional volatility. This is known as extension risk. In addition, mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of a Fund because the Fund will have to reinvest that money at the lower prevailing interest rates.
s. | Non-Diversified Fund Risk |
Because Aberdeen Asia Bond Fund, Aberdeen Emerging Markets Debt Fund and Aberdeen Emerging Markets Debt Local Currency Fund are non-diversified, the Funds may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on each Fund’s value and total return.
t. | Non-Hedging Foreign Currency Trading Risk |
Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from the Adviser’s expectations may produce significant losses to a Fund.
u. | Prepayment Risk |
As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated. The issuers of fixed income securities may, therefore, repay principal in advance. This forces the Fund to reinvest the proceeds from the principal prepayments at lower rates, which reduces the Fund’s income.
v. | Private Placements and Other Restricted Securities Risk |
Investments in private placements and other restricted securities, including Regulation S Securities and Rule 144A Securities, could have the effect of increasing a Fund’s level of illiquidity. Private placements and restricted securities may be less liquid than other investments because such securities may not always be readily sold in broad public markets and the Fund might be unable to dispose of such securities promptly or at prices reflecting their true value.
w. | Sector Risk |
To the extent that a Fund has a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Consumer Staples Sector Risk. To the extent the consumer staples sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. The consumer staples sector may be affected by the regulation of various product components and production methods, marketing campaigns and other factors affecting consumer demand. Tobacco companies, in particular, may be adversely affected by new laws, regulations and litigation. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may be influenced by unpredictable factors.
Financial Sector Risk. To the extent that the financials sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. The impact of more stringent capital requirements, recent or future regulation of any individual financial company, or recent or future regulation of the financials sector as a whole cannot be predicted. In recent years, cyber attacks and technology malfunctions and failures have become increasingly frequent in this sector and have caused significant losses.
Industrials Sector Risk. To the extent that the industrials sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a greater extent on, factors impacting this sector. The industrials sector may be adversely affected by changes in the supply of and demand for products and services, product obsolescence, claims for environmental damage or product liability and general economic conditions, among other factors.
x. | Securities Selection Risk |
The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.
y. | Valuation Risk |
The lack of active trading markets may make it difficult to obtain an accurate price for a security held by a Fund.
Please read the prospectus for more detailed information regarding these and other risks.
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
6. Contingencies
In the normal course of business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds, and therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
7. Tax Information
As of April 30, 2016, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) for each Fund were as follows:
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Asia Bond Fund | $ | 30,428,120 | $ | 538,196 | $ | (350,185 | ) | $ | 188,011 | |||||||
Emerging Markets Debt Fund | 30,103,407 | 709,797 | (1,584,311 | ) | (874,514 | ) | ||||||||||
Emerging Markets Debt Local Currency Fund | 12,735,360 | 179,719 | (1,941,595 | ) | (1,761,876 | ) | ||||||||||
Global Fixed Income Fund | 13,843,431 | 426,062 | (220,479 | ) | 205,583 | |||||||||||
Tax-Free Income Fund | 84,880,616 | 7,904,574 | (177,217 | ) | 7,727,357 | |||||||||||
Ultra-Short Duration Bond Fund | 9,120,620 | 16,952 | (5,718 | ) | 11,234 |
The tax character of distributions paid during the fiscal year ended October 31, 2015 was as follows (total distributions paid may differ from the Statements of Changes in Net Assets because for tax purposes dividends are recognized when actually paid):
Distributions paid from | ||||||||||||||||||||||||||||
Fund | Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Taxable Over- distribution | Tax Exempt Distributions | Return of Capital | Total Distributions Paid | |||||||||||||||||||||
Asia Bond Fund | $ | 1,794,506 | $ | – | $ | 1,794,506 | $ | – | $ | – | $ | 1,882,555 | $ | 3,677,061 | ||||||||||||||
Emerging Markets Debt Fund | 1,169,451 | – | 1,169,451 | – | – | – | 1,169,451 | |||||||||||||||||||||
Emerging Markets Debt Local Currency Fund | – | – | – | – | – | – | – | |||||||||||||||||||||
Global Fixed Income Fund | 199,462 | – | 199,462 | 5 | – | – | 199,467 | |||||||||||||||||||||
Tax-Free Income Fund | 118,665 | 231,719 | 350,384 | – | 3,144,039 | 27,644 | 3,522,067 | |||||||||||||||||||||
Ultra-Short Duration Bond Fund | 51,639 | – | 51,639 | – | – | – | 51,639 |
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Notes to Financial Statements (continued)
April 30, 2016 (Unaudited)
As of October 31, 2015, the components of accumulated earnings/(deficit) on a tax basis were as follows:
Fund | Undistributed Tax Exempt Income | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Earnings | Distributions Payable | Late Year Ordinary and Post-October Capital Loss Deferrals | Other Temporary Differences | Unrealized Appreciation/ Depreciation* | Accumulated Capital and Other Losses** | Total Accumulated Earnings/ (Deficit) | ||||||||||||||||||||||||||||||
Asia Bond Fund | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | (524,261 | ) | $ | (1,559,619 | ) | $ | (5,453,826 | ) | $ | (7,537,706 | ) | ||||||||||||||||
Emerging Markets Debt Fund | – | 485,167 | – | – | – | – | (16,203 | ) | (2,750,491 | ) | (966,542 | ) | (3,278,069 | ) | ||||||||||||||||||||||||||
Emerging Markets Debt Local Currency Fund | – | – | – | – | – | – | (65,832 | ) | (3,526,194 | ) | (1,839,338 | ) | (5,431,364 | ) | ||||||||||||||||||||||||||
Global Fixed Income Fund | – | – | – | – | – | – | (28,379 | ) | (678,686 | ) | (375,307 | ) | (1,082,372 | ) | ||||||||||||||||||||||||||
Tax-Free Income Fund | – | – | – | – | – | – | (18,342 | ) | 7,334,777 | (207,822 | ) | 7,108,613 | ||||||||||||||||||||||||||||
Ultra-Short Duration Bond Fund | – | 2,057 | – | – | – | – | (428 | ) | (810 | ) | (5,355 | ) | (4,536 | ) |
* | The difference between the book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to tax deferral of losses on wash sales. |
** | As of October 31, 2015, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the Treasury regulations, which expire in the years set forth below. |
Fund | Amount | Expires | ||||||
Asia Bond Fund | $ | 3,659,122 | Unlimited (Short-Term) | |||||
Asia Bond Fund | 1,794,704 | Unlimited (Long-Term) | ||||||
Emerging Markets Debt Fund | 348,855 | Unlimited (Short-Term) | ||||||
Emerging Markets Debt Fund | 647,687 | Unlimited (Long-Term) | ||||||
Emerging Markets Debt Local Currency Fund | 644,686 | Unlimited (Short-Term) | ||||||
Emerging Markets Debt Local Currency Fund | 1,194,652 | Unlimited (Long-Term) | ||||||
Global Fixed Income Fund | 131,684 | Unlimited (Short-Term) | ||||||
Global Fixed Income Fund | 243,623 | Unlimited (Long-Term) | ||||||
Tax-Free Income Fund | 207,822 | Unlimited (Long-Term) | ||||||
Ultra-Short Duration Bond Fund | 3,261 | Unlimited (Short-Term) | ||||||
Ultra-Short Duration Bond Fund | 2,094 | Unlimited (Long-Term) |
Amounts listed as “–” are $0 or round to $0.
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
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Notes to Financial Statements (concluded)
April 30, 2016 (Unaudited)
8. Significant Shareholders
As of April 30, 2016, the following Funds had shareholders with the percentage ownership indicated, which are considered significant shareholders (holdings greater than 5.0%) for financial reporting purposes:
Fund | Record Ownership % | Number of Account Owners | ||||
Asia Bond Fund | 87.0 | % | 5 | |||
Emerging Markets Debt Fund | 97.7 | 1 | ||||
Emerging Markets Debt Local Currency Fund | 92.8 | 3 | ||||
Global Fixed Income Fund | 54.4 | 2 | ||||
Tax-Free Income Fund | – | – | ||||
Ultra-Short Duration Bond Fund | 75.9 | 3 |
Amounts listed as “–” are $0 or round to $0.
9. Line of Credit
Effective August 14, 2015, the Trust, on behalf of each of the Funds (the “Borrowers”), entered into a 364-day credit agreement (the “Agreement”) with State Street Bank and Trust Company (the “Bank”). The Agreement provides for a revolving credit facility (the “Credit Facility”) for the amount of $250,000,000 to be utilized for temporary or emergency purposes to fund shareholder redemptions or other short-term liquidity purposes.
Principal on each outstanding loan made under the Agreement bears interest at a variable rate per annum equal to the higher of (a) the Federal Funds Rate as in effect of that day plus 1.25% or (b) the Overnight London Interbank Offered Rate as in effect on that day plus 1.25%. In addition, the Borrowers shall pay to the Bank a commitment fee at the rate of 0.18% per annum on the daily unused portion of the Credit Facility, as applicable, which is allocated among the Borrowers in such manner as is determined by the Board to be reasonable. For each Fund that borrowed under the Credit Facility during the period, the following table shows the average outstanding daily balance for the Fund under the Credit Facility and the average weighted interest rate paid by the Fund during the period.
Average Outstanding Daily Balance | Average Weighted Interest Rate | Days Utilized | ||||||||||
Asia Bond Fund | $ | 4,504,648 | 1.42 | % | 49 | |||||||
Emerging Markets Debt Fund | 263,147 | 1.40 | % | 3 | ||||||||
Emerging Markets Debt Local Currency Fund | 849,065 | 1.38 | % | 43 | ||||||||
Global Fixed Income Fund | 110,252 | 1.38 | % | 16 |
10. Subsequent Events
Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or adjustments were required to the financial statements as of April 30, 2016.
At a meeting of the Board held on June 15, 2016, the Board approved the following changes that impact certain Funds: a Plan of Liquidation for the Aberdeen Ultra-Short Duration Bond Fund, pursuant to which the Fund will be liquidated on or about August 15, 2016; changing the name of the Aberdeen Global Fixed Income Fund to Aberdeen Global Unconstrained Fixed Income Fund and changing the Fund’s investment objective and principal investment strategies, effective on or about August 15, 2016; and, an Agreement and Plan of Reorganization pursuant to which the Aberdeen Emerging Markets Debt Local Currency Fund would be reorganized into the Aberdeen Emerging Markets Debt Fund on or around August 15, 2016. For more information about each of these matters, please see each Fund’s prospectus dated February 29, 2016, as amended March 9, 2016 and supplemented to date.
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Shareholder Expense Examples (Unaudited)
As a shareholder of the Aberdeen Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and (2) ongoing costs, including investment advisory fees, administration fees, transfer agent out-of-pocket expenses, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Aberdeen Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, November 1, 2015 and continued to hold your shares at the end of the reporting period, April 30, 2016.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Actual Expenses Paid During Period” for the class of a Fund that you own to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of a Fund and other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads). Therefore, the information for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value, November 1, 2015 | Actual Ending Account Value, April 30, 2016 | Hypothetical Ending Account Value | Actual Expenses Paid During Period* | Hypothetical Expenses Paid During Period*1 | Annualized Expense Ratio** | |||||||||||||||||||||
Asia Bond Fund | Class A | $ | 1,000.00 | $ | 1,038.00 | $ | 1,020.04 | $ | 4.92 | $ | 4.87 | 0.97% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,034.10 | $ | 1,016.36 | $ | 8.65 | $ | 8.57 | 1.71% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,036.70 | $ | 1,018.85 | $ | 6.13 | $ | 6.07 | 1.21% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,038.10 | $ | 1,020.39 | $ | 4.56 | $ | 4.52 | 0.90% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,039.50 | $ | 1,021.33 | $ | 3.60 | $ | 3.57 | 0.71% | |||||||||||||||
Emerging Markets Debt Fund | Class A | $ | 1,000.00 | $ | 1,055.10 | $ | 1,018.95 | $ | 6.08 | $ | 5.97 | 1.19% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,051.70 | $ | 1,015.42 | $ | 9.69 | $ | 9.52 | 1.90% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,054.10 | $ | 1,017.90 | $ | 7.15 | $ | 7.02 | 1.40% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,057.00 | $ | 1,020.39 | $ | 4.60 | $ | 4.52 | 0.90% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,057.10 | $ | 1,020.39 | $ | 4.60 | $ | 4.52 | 0.90% | |||||||||||||||
Emerging Markets Debt Local Currency Fund | Class A | $ | 1,000.00 | $ | 1,079.90 | $ | 1,018.35 | $ | 6.77 | $ | 6.57 | 1.31% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,073.90 | $ | 1,015.42 | $ | 9.80 | $ | 9.52 | 1.90% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,077.10 | $ | 1,017.40 | $ | 7.75 | $ | 7.52 | 1.50% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,081.60 | $ | 1,020.39 | $ | 4.66 | $ | 4.52 | 0.90% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,080.00 | $ | 1,020.39 | $ | 4.65 | $ | 4.52 | 0.90% | |||||||||||||||
Global Fixed Income Fund | Class A | $ | 1,000.00 | $ | 1,053.50 | $ | 1,019.29 | $ | 5.72 | $ | 5.62 | 1.12% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,050.70 | $ | 1,015.66 | $ | 9.43 | $ | 9.27 | 1.85% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,054.60 | $ | 1,019.69 | $ | 5.31 | $ | 5.22 | 1.04% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,055.80 | $ | 1,020.64 | $ | 4.34 | $ | 4.27 | 0.85% | |||||||||||||||
Tax-Free Income Fund | Class A | $ | 1,000.00 | $ | 1,019.40 | $ | 1,020.49 | $ | 4.42 | $ | 4.42 | 0.88% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,015.80 | $ | 1,016.81 | $ | 8.12 | $ | 8.12 | 1.62% | |||||||||||||||
Class R | $ | 1,000.00 | $ | 1,018.30 | $ | 1,019.29 | $ | 5.62 | $ | 5.62 | 1.12% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,020.90 | $ | 1,021.78 | $ | 3.12 | $ | 3.12 | 0.62% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,020.80 | $ | 1,021.78 | $ | 3.12 | $ | 3.12 | 0.62% |
Semi-Annual Report 2016
96
Shareholder Expense Examples (Unaudited) (concluded)
Beginning Account Value, November 1, 2015 | Actual Ending Account Value, April 30, 2016 | Hypothetical Ending Account Value | Actual Expenses Paid During Period* | Hypothetical Expenses Paid During Period*1 | Annualized Expense Ratio** | |||||||||||||||||||||
Ultra-Short Duration Bond Fund | Class A | $ | 1,000.00 | $ | 1,003.20 | $ | 1,022.13 | $ | 2.74 | $ | 2.77 | 0.55% | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,001.80 | $ | 1,018.40 | $ | 4.91 | $ | 6.52 | 1.30% | |||||||||||||||
Institutional Service Class | $ | 1,000.00 | $ | 1,004.40 | $ | 1,023.37 | $ | 1.50 | $ | 1.51 | 0.30% | |||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,004.50 | $ | 1,023.37 | $ | 1.50 | $ | 1.51 | 0.30% |
* | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period). |
** | The expense ratio presented represents a six-month, annualized ratio. |
1 | Represents the hypothetical 5% return before expenses. |
2016 Semi-Annual Report
97
FACTS | WHAT DO ABERDEEN FUNDS DO WITH YOUR PERSONAL INFORMATION? | |||||||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |||||||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
· Social Security number and account balances
· Transaction history and assets
· Checking account information and wire transfer instructions |
| ||||||
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Aberdeen Funds choose to share; and whether you can limit this sharing. | |||||||
Reasons we can share your personal information | Do Aberdeen Funds share? | | Can you limit this sharing? | | ||||
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||||||
For our marketing purposes— to offer our products and services to you | Yes | Yes | ||||||
For joint marketing with other financial companies | No | We don’t share | ||||||
For our affiliates’ everyday business purposes— information about your transactions and experiences | Yes | No | ||||||
For our affiliates’ everyday business purposes— information about your creditworthiness | No | We don’t share | ||||||
For our affiliates to market to you | No | We don’t share | ||||||
For nonaffiliates to market to you | No | We don’t share | ||||||
To limit our sharing | · Call 1-800-522-5465
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice.
However, you can contact us at any time to limit our sharing. |
| ||||||
Questions? | www.aberdeen-asset.us |
Page 2 |
Who we are | ||
Who is providing this notice? | Aberdeen’s North American Funds (collectively referred to as “Aberdeen Funds”) | |
What we do | ||
How do Aberdeen Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | |
How do Aberdeen Funds collect my personal information? | We collect your personal information, for example, when you:
· Open an account or give us your contact information
· Provide account information or make wire transfers
· Make deposits or withdrawals from your account | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
· Sharing for affiliates’ everyday business purposes—information about your creditworthiness
· Affiliates from using your information to market to you
· Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to everyone on your account. | |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
· Our affiliates include companies with an Aberdeen Asset Management name and wholly-owned subsidiaries of Aberdeen Asset Management PLC, a global financial services company. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
· Aberdeen Funds do not share personal information with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
· Aberdeen Funds don’t jointly market. | |
Other important information | ||
This Privacy Notice is being provided by Aberdeen Funds and Aberdeen Investment Funds, each a U.S.-registered open-end investment company, and North-American-registered closed-end investment companies managed by Aberdeen Asset Management Inc. or its affiliates (collectively, North American Funds). |
Management Information
Trustees
P. Gerald Malone, Chairman
Martin J. Gilbert
Richard H. McCoy
Neville J. Miles
Peter D. Sacks
John T. Sheehy
Warren C. Smith
John F. Solan, Jr.
Officers
Bev Hendry, President and Chief Executive Officer
Jeffrey Cotton, Chief Compliance Officer and Vice President
Andrea Melia, Treasurer and Chief Financial Officer
Megan Kennedy, Secretary and Vice President
Brad Crombie, Vice President
Lucia Sitar, Vice President
Alan Goodson, Vice President
Adam McCabe, Vice President
Jennifer Nichols, Vice President
Hugh Young, Vice President
Russell Barlow, Vice President
Eric Olsen, Assistant Treasurer
Brian O’Neill, Assistant Treasurer
Investment Manager
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Fund Administrator
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Transfer Agent
Boston Financial Data Services, Inc.
30 Dan Road
Canton, MA 02021
Distributor
Aberdeen Fund Distributors LLC
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
Sub-Administrator, Custodian & Fund Accountant
State Street Bank and Trust Company
1 Iron Street 5th Floor
Boston, MA 02110
Independent Registered Public Accounting Firm
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Fund Counsel
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 aberdeen-asset.us |
AOE-0143-SAR
SEMI-ANNUAL REPORT
Aberdeen Multi-Manager Alternative
Strategies Fund II
(Successor fund of
Arden Alternative Strategies II)
April 30, 2016 (Unaudited)
1 | ||||
7 | ||||
66 | ||||
68 | ||||
69 | ||||
71 | ||||
73 | ||||
99 | ||||
101 | ||||
Board Approval of Investment Advisory and Sub-Advisory Agreements (Unaudited) | 102 |
The Aberdeen Multi-Manager Alternative Strategies Fund II (Institutional Class shares net of fees)1 returned -3.23% for the six-month period ended April 30, 2016, versus the -1.43% return of its benchmark, the HFRX Absolute Return Index, for the same period. For broader comparison, the average return of the Fund’s peer category of Alternative Multi-Strategy Funds (consisting of 81 funds), as measured by Lipper, Inc., was -1.21%.
Many of the concerns that had a negative impact on global equity markets in the summer of 2015 continued to weigh on investor risk sentiment through the fourth quarter of the year and into the beginning of 2016. The Chinese yuan resumed its decline versus the U.S. dollar, oil prices fell below $30 a barrel (WTI) and U.S. long-term inflation expectations (as measured by 10-year breakeven rates2) fell to the lowest levels since the spring of 2009. Emerging-market equities, interest rates and currencies were again at the center of the market volatility, with the Shanghai Composite Index3 falling in excess of 20% in January. Developed-market equities also experienced significant losses during this period. Central banks in Europe and Japan responded to the market volatility in the first quarter of 2016 by announcing further measures aimed at stimulating economic growth. The People’s Bank of China implemented a large fiscal stimulus program, and the U.S. Federal Reserve delivered an unexpectedly dovish interest rate forecast at its February meeting. Markets began a sharp recovery in the second half of February, with the U.S. dollar declining and commodities and commodity-sensitive assets rallying the most significantly. In March, the MSCI Emerging Markets (EM) Index4 surged 13.0% and the J.P. Morgan EM Currency Index5 was up 5.4%-its biggest monthly rally since its inception in 2010. At the same time, diminished expectations for developed-market growth contributed to relatively weak performance in sectors such as healthcare, information technology and financials. The rally in commodities continued through April 2016 (the WTI oil price rose 20% over the month) and by the end of the reporting period, U.S. inflation expectations had recovered all of the ground lost since July 2015.
Despite high levels of volatility, global equity market returns over the entire reporting period were relatively stable, with the U.S., emerging-market and global developed-market benchmark indices returning 0.4%, 0.0% and -0.7%, respectively.6 Equities in Europe and Japan were notable laggards among their global peers, with the Stoxx Europe 6007 and Nikkei 2258 indices returning -7.4% and -11.8%, respectively, over the reporting period. The underperformance was largely attributable to the relative strength of the euro and Japanese yen during the period. Developed-market government bonds performed strongly, with 10-year U.S. Treasury yields declining more than 30 basis points (bps) and German Bund yields falling 25 bps. Remarkably, yields on 10-year Japanese government bonds (JGBs) fell below 0% and traded as low as -0.13%.
It was a difficult period for the Fund, with only two sub-advisers providing a positive contribution to performance. The diversified9 nature of the Fund performed as we had anticipated, especially in the first six weeks of 2016. However, the strong market correction that followed was difficult given the positioning of the Fund’s sub-advisers.
The top contributor to Fund performance for the reporting period was Otter Creek Advisors, with its strongest performance coming in January and April. Over the reporting period, Otter Creek maintained a relatively defensive bias with a negative delta-adjusted10 net exposure.11 Otter Creek’s long value, short growth positioning combined with some opportunistic trading, enhanced Fund performance for the period. Top-performing individual positions included long holdings in Newmont Mining and Potlatch, a natural resources-related real estate investment trust (REIT). On the short side, Gentherm, a manufacturer of climate-control systems, and Stifel Financial bolstered Fund performance. Ellington Management Group also was a contributor to Fund performance for the reporting period. Ellington was a consistent performer, garnering positive returns each month, with the exception of March. The quantitative macro strategy drove performance for Ellington, with gains in equities, foreign exchange (FX) and commodities. Conversely, the quantitative equity strategy slightly detracted from Fund performance primarily due to losses in energy.
The top detractor from Fund performance among sub-advisers for the period was York Registered Holdings. York’s overall performance recently has struggled, as many of its holdings suffer from hedge fund crowding12 or common merger/arbitrage deals that have been subject to de-risking, deal breaks and the “risk on/risk off” trading environment. Top detractors for York included Energy Transfer Equity, Allergan and Dish Networks. On the positive side, York’s portfolio performance benefited from the Starwood/Marriot and Time Warner/Charter merger deals. PanAgora was the second-largest detracting sub-adviser over the reporting period. The reversal in market momentum that began in January 2016 drove the losses. Approximately 80%
1
of PanAgora’s portfolio is allocated to longer-term models that have significant exposure to market momentum. Momentum stocks performed particularly well in 2015, but experienced a significant reversal in the first several months of 2016 due to hedge fund crowding and energy bottoming out and subsequently rallying. The third-largest detractor among sub-advisers was J.P. Morgan (JPM) Europe Dynamic, as its European financials exposure saw notable losses in European banks such as BNP Paribas, UBS and Société Générale. JPM Europe Dynamic’s portfolio performance also was hampered by underweight exposure to the European telecom, consumer cyclicals and energy sectors.
The Fund’s use of derivatives subtracted about 1.77% from its total return for the reporting period. The Fund’s sub-advisers employed contracts for differences (CFDs),13 which seek to provide the Fund with exposure to the markets at a much lower cost than owning the actual underlying securities, as well as currency forwards14 as a hedge against foreign exchange risk. Both positions detracted from Fund performance for the period. Conversely, the Fund’s exposure to index futures had a positive impact on performance.
Over the period, the Fund’s adviser removed Santa Fe, an equity market-neutral quantitative manager, as a sub-adviser. Santa Fe ceased operations in March 2016, so the Fund reallocated assets managed by Santa Fe. This caused the relative value allocation to drop from approximately 29.9% to 22.6% of the Fund’s total assets. The capital was redeployed predominately to equity long/short sub-advisers, which increased the long/short strategy allocation from approximately 43.1% to 49.2%. Otter Creek’s allocation saw the largest increase among the Fund’s sub-advisers over the reporting period, rising from approximately 11.1% to 15.7%. Additionally, the total allocation of Algert, an equity market-neutral quantitative manager, increased from approximately 9.2% to 11.7%.
We recently have seen that changes in U.S. monetary policy still have the capacity to stimulate asset prices. However, we think that the underlying concerns around the trajectory of global economic growth remain, as does the sense that central banks are increasingly engaging in a “zero sum” game of competitive currency devaluations. Given the fragility of the global economy, as well as significant political uncertainties around the UK’s membership in the European Union and the U.S. presidential election in November, we continue to expect periodic bouts of weakness and volatility in equities over the balance of 2016.
1 | PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 866-667-9231 or go to www.aberdeen-asset.us. |
2 | The breakeven rate is the difference in yield between an inflation-linked security and a fixed-rate issue of the same maturity. |
3 | The Shanghai Composite Index comprises all the A-shares and B-shares that trade on the Shanghai Stock Exchange. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
4 | The MSCI Emerging Markets (EM) Index tracks the performance of stocks in developing countries. |
5 | The J.P. Morgan EM Currency Index tracks the performance of currencies in developing countries. |
6 | U.S. equities are represented by the S&P 500 Index; emerging-markets equities are measured by the MSCI EM Index; global developed-market stocks are represented by the MSCI World Index. The S&P 500 Index includes 500 selected common stocks, most of which are listed on the New York Stock Exchange, that is a measure of the U.S. stock market as a whole. The MSCI World Index tracks the performance of stocks in developed countries. |
7 | The Stoxx Europe 600 Index tracks the performance of 600 publicly traded companies in the European Union countries. |
8 | The Nikkei 225 Index is a price-weighted index comprising 225 stocks traded in the First Section of the Tokyo Stock Exchange. |
9 | Diversification does not ensure a profit or protect against a loss in a declining market. |
2
10 | Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. |
11 | Net exposure is the difference between the percentage of assets invested in long positions and the percentage of assets invested in short positions. |
12 | Hedge fund crowding involves the use of small amounts of capital from a large number of individuals to finance a new business venture. |
13 | A contract for differences (CFD) is a futures contract between a buyer and seller to exchange the difference in the current value of a share of stock, currency, commodity or index and its value at the end of the contract. |
14 | Currency forwards are contracts used in the foreign exchange market which lock in the exchange rate for the purchase or sale of a currency on a future date. |
3
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
APRIL 30, 2016
Portfolio By Type of Security |
| |||||||
Long | Short | |||||||
Common Stocks | 67.3 | % | (12.0 | )% | ||||
Options Purchased | 0.6 | — | ||||||
Exchange Traded Funds | 0.5 | (10.8 | ) | |||||
Convertible Preferred Stocks | 0.3 | — | ||||||
Preferred Stocks | 0.3 | — | ||||||
Short-Term Investments | 9.6 | — | ||||||
Other Assets less Liabilities* | 44.2 | — | ||||||
|
|
|
| |||||
Total | 122.8 | % | (22.8 | )% | ||||
|
|
|
|
* | Please refer to the Statements of Assets and Liabilities for additional details. |
4
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
APRIL 30, 2016
Performance Highlights
Average Annual Total Return1 (For periods ended April 30, 2016)
Six Month^ | One Year | Since Inception2 | ||||||||||||||||||
Class A3 | w/o SC | -3.41% | -3.11% | -0.88% | ||||||||||||||||
w/SC4 | -8.99% | -8.64% | -3.47% | |||||||||||||||||
Class C5 | w/o SC | -3.51% | -3.21% | -0.92% | ||||||||||||||||
w/SC6 | -4.51% | -4.21% | -0.92% | |||||||||||||||||
Class R5,7 | w/o SC | -3.41% | -3.11% | -0.88% | ||||||||||||||||
Institutional Class3,7 | w/o SC | -3.23% | -2.83% | -0.62% | ||||||||||||||||
HFRX Absolute Return Index | -1.43% | 0.53% | 1.15% |
All figures showing the effect of a sales charge (SC) reflect the maximum charge possible because it has the most significant effect on performance data. The total returns shown above do not include the impact of financial statement rounding of the net asset value (NAV) per share and/or financial statement adjustments.
^ | Not Annualized |
1 | Returns presented for the Fund for periods prior to February 29, 2016 reflect the performance of the predecessor fund (the Predecessor Fund). The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Please consult the Fund’s prospectus for more detail. |
2 | The Fund commenced operations on February 3, 2014. Class C and Class R commenced operations on February 29, 2016. |
3 | In connection with the reorganization (Note 1), effective February 29, 2016, Advisor Class and Class I shares of the Predecessor Fund were exchanged for Class A shares and Institutional Class shares of the Fund, respectively. |
4 | A 5.75% front-end sales charge was deducted. |
5 | Returns before the first offering of Class A, Class C and Class R (February 29, 2016) are based on the previous performance of the Predecessor Fund’s Advisor Class shares. This performance is substantially similar to what Class A, Class C and Class R would have produced because all classes invest in the same portfolio of securities. Returns would only differ to the extent of the differences in expenses of the classes. |
6 | A 1.00% contingent deferred sales charge (CDSC) was deducted from the one year returns because it is charged when Class C shares are sold within the first year after purchase. |
7 | Not subject to any sales charges. |
Past performance is not indicative of future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Average Annual Total Return table and Performance graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Current performance may be lower or higher than the performance data quoted. To obtain performance current to the most recent month-end please call 866-667-9231.
5
Value of a $1,000,000* Investment Since Inception at Net Asset Value**
* | Minimum Initial Investment |
** | The line graph represents historical performance of a hypothetical investment of $1,000,000 from February 3, 2014 to April 30, 2016, assuming the reinvestment of distributions. |
† | Comparative performance of $1,000,000 invested in Institutional Class shares of the Aberdeen Multi-Manager Alternative Strategies Fund II and the Hedge Fund Research (HFRX) Abolute Return Index since inception. Unlike the Fund, the returns for the unmanaged index do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes. |
The HFRX Absolute Return Index is designed to measure absolute returns. It measures the comprehensive overall returns of hedge funds. Since hedge funds explore unique investment strategies and seek to obtain absolute returns rather than focus on beating a benchmark, the HFRX is representative of all hedge fund strategies.
The Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. The index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.
The MSCI World Index is a free float-adjusted, market capitalization-weighted index that captures large and mid cap representation across 24 Developed Markets (DM) countries. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US.
6
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS
APRIL 30, 2016 (Unaudited)
INVESTMENTS | SHARES | VALUE | ||||||
LONG POSITIONS — 78.6% |
| |||||||
COMMON STOCKS — 67.3% |
| |||||||
Aerospace & Defense — 0.7% |
| |||||||
B/E Aerospace, Inc. | 4,183 | $ | 203,419 | |||||
General Dynamics Corp. | 200 | 28,104 | ||||||
Honeywell International, Inc.(a) | 500 | 57,135 | ||||||
Spirit AeroSystems Holdings, Inc., Class A* | 1,000 | 47,150 | ||||||
Thales SA (France) | 1,023 | 88,440 | ||||||
|
| |||||||
424,248 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.8% |
| |||||||
FedEx Corp. | 3,048 | 503,255 | ||||||
|
| |||||||
Airlines — 0.2% | ||||||||
Air France-KLM (France)* | 5,284 | 47,387 | ||||||
International Consolidated Airlines Group SA (United Kingdom) | 5,705 | 43,866 | ||||||
|
| |||||||
91,253 | ||||||||
|
| |||||||
Auto Components — 0.5% | ||||||||
Autoliv, Inc. (Sweden) | 300 | 36,741 | ||||||
Continental AG (Germany) | 323 | 70,937 | ||||||
Lear Corp.(a) | 600 | 69,078 | ||||||
Valeo SA (France) | 734 | 116,363 | ||||||
|
| |||||||
293,119 | ||||||||
|
| |||||||
Automobiles — 0.2% | ||||||||
Peugeot SA (France)* | 3,169 | 51,001 | ||||||
Renault SA (France) | 776 | 74,888 | ||||||
|
| |||||||
125,889 | ||||||||
|
| |||||||
Banks — 2.4% | ||||||||
Banco Santander SA (Spain) | 51,110 | 258,732 | ||||||
Bank of the Ozarks, Inc.(a) | 2,000 | 82,600 | ||||||
BNP Paribas SA (France) | 2,582 | 136,710 | ||||||
Cullen/Frost Bankers, Inc.(a) | 700 | 44,793 | ||||||
Huntington Bancshares, Inc. | 2,900 | 29,174 | ||||||
Intesa Sanpaolo SpA (Italy) | 34,151 | 94,633 | ||||||
Natixis SA (France) | 13,840 | 76,337 | ||||||
Seacoast Banking Corp of Florida* | 21,929 | 355,688 | ||||||
Signature Bank*(a) | 200 | 27,566 | ||||||
Societe Generale SA (France) | 1,397 | 54,788 | ||||||
State Bank Financial Corp. | 8,298 | 173,262 | ||||||
Synovus Financial Corp.(a) | 1,300 | 40,508 | ||||||
UniCredit SpA (Italy) | 23,757 | 91,783 | ||||||
|
| |||||||
1,466,574 | ||||||||
|
|
SHARES | VALUE | |||||||
Beverages — 3.6% | ||||||||
Anheuser-Busch InBev SA/NV, ADR (Belgium) | 4,758 | $ | 590,848 | |||||
Anheuser-Busch InBev SA/NV (Belgium) | 1,487 | 184,061 | ||||||
Brown-Forman Corp., Class B(a)(b) | 3,722 | 358,503 | ||||||
Coca-Cola Co. (The) | 5,437 | 243,578 | ||||||
Heineken NV (Netherlands) | 5,647 | 529,842 | ||||||
Monster Beverage Corp.*(a) | 200 | 28,844 | ||||||
PepsiCo., Inc.(c) | 1,567 | 161,338 | ||||||
Royal Unibrew A/S (Denmark) | 1,651 | 74,578 | ||||||
|
| |||||||
2,171,592 | ||||||||
|
| |||||||
Biotechnology — 1.6% | ||||||||
Acorda Therapeutics, Inc.*(a) | 1,300 | 33,605 | ||||||
Actelion Ltd. (Switzerland)* | 427 | 68,993 | ||||||
Anacor Pharmaceuticals, Inc.* | 600 | 37,644 | ||||||
Baxalta, Inc.(a) | 14,336 | 601,395 | ||||||
Biogen, Inc.* | 310 | 85,247 | ||||||
China Biologic Products, Inc. | 200 | 23,400 | ||||||
Five Prime Therapeutics, Inc.*(a) | 800 | 38,072 | ||||||
Incyte Corp.*(a) | 200 | 14,454 | ||||||
United Therapeutics Corp.* | 400 | 42,080 | ||||||
|
| |||||||
944,890 | ||||||||
|
| |||||||
Building Products — 0.1% | ||||||||
AO Smith Corp.(a) | 500 | 38,610 | ||||||
|
| |||||||
Capital Markets — 1.9% | ||||||||
Bank of New York Mellon Corp. | 2,673 | 107,561 | ||||||
Charles Schwab Corp. (The)(c) | 5,173 | 146,965 | ||||||
E*TRADE Financial Corp.* | 13,394 | 337,261 | ||||||
Legg Mason, Inc.(a) | 200 | 6,422 | ||||||
Raymond James Financial, Inc.(a) | 800 | 41,736 | ||||||
SEI Investments Co. | 8,544 | 410,796 | ||||||
UBS Group AG (Switzerland) | 3,311 | 57,294 | ||||||
WisdomTree Investments, Inc. | 2,600 | 28,314 | ||||||
|
| |||||||
1,136,349 | ||||||||
|
| |||||||
Chemicals — 5.9% | ||||||||
Agrium, Inc. (Canada) | 1,000 | 86,120 | ||||||
Air Products & Chemicals, Inc.(a) | 3,100 | 452,259 |
See Accompanying Notes to the Consolidated Financial Statements.
7
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Chemicals (continued) |
| |||||||
Airgas, Inc. | 4,024 | $ | 573,179 | |||||
Akzo Nobel NV (Netherlands) | 2,010 | 142,804 | ||||||
Albemarle Corp.(a) | 400 | 26,464 | ||||||
Axalta Coating Systems Ltd.*(a)(b) | 2,517 | 71,659 | ||||||
BASF SE (Germany) | 1,180 | 97,486 | ||||||
Covestro AG (Germany)*(d)(e) | 3,178 | 125,617 | ||||||
Ecolab, Inc.(c) | 2,435 | 279,976 | ||||||
GCP Applied Technologies, Inc.* | 7,483 | 165,599 | ||||||
Monsanto Co.(a) | 400 | 37,472 | ||||||
PPG Industries, Inc. | 300 | 33,117 | ||||||
Sherwin-Williams Co. (The)(a) | 2,406 | 691,268 | ||||||
Syngenta AG (Switzerland) | 716 | 287,234 | ||||||
Syngenta AG, ADR | 400 | 32,228 | ||||||
W.R. Grace & Co.* | 5,929 | 454,636 | ||||||
|
| |||||||
3,557,118 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.8% |
| |||||||
ADT Corp. (The) | 5,814 | 244,072 | ||||||
Elanders AB, Class B (Sweden) | 5,218 | 46,946 | ||||||
ISS A/S (Denmark) | 1,958 | 74,347 | ||||||
KAR Auction Services, Inc.(a) | 1,700 | 63,920 | ||||||
Republic Services, Inc.(a) | 700 | 32,949 | ||||||
|
| |||||||
462,234 | ||||||||
|
| |||||||
Communications Equipment — 0.2% |
| |||||||
Arista Networks, Inc.*(a) | 1,000 | 66,620 | ||||||
Palo Alto Networks, Inc.*(a) | 300 | 45,261 | ||||||
|
| |||||||
111,881 | ||||||||
|
| |||||||
Construction & Engineering — 0.5% |
| |||||||
Dycom Industries, Inc.*(a) | 1,200 | 84,720 | ||||||
HOCHTIEF AG (Germany) | 637 | 81,656 | ||||||
Quanta Services, Inc.*(a) | 3,000 | 71,160 | ||||||
Vinci SA (France) | 1,174 | 87,701 | ||||||
|
| |||||||
325,237 | ||||||||
|
| |||||||
Construction Materials — 0.6% |
| |||||||
Eagle Materials, Inc.(a) | 500 | 37,060 | ||||||
Martin Marietta Materials, Inc.(b) | 1,752 | 296,491 | ||||||
|
| |||||||
333,551 | ||||||||
|
|
SHARES | VALUE | |||||||
Consumer Finance — 0.2% |
| |||||||
Resurs Holding AB (Sweden)*(d) | 14,243 | $ | 97,727 | |||||
|
| |||||||
Containers & Packaging — 0.1% |
| |||||||
Avery Dennison Corp.(a) | 200 | 14,522 | ||||||
Graphic Packaging Holding Co.(a) | 3,800 | 50,464 | ||||||
|
| |||||||
64,986 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.1% |
| |||||||
New Oriental Education & Technology Group, Inc., ADR (China)(a) | 1,000 | 39,160 | ||||||
|
| |||||||
Diversified Financial Services — 1.5% |
| |||||||
Berkshire Hathaway, Inc., Class B* | 2,244 | 326,457 | ||||||
Deutsche Boerse AG (Germany) | 1,299 | 106,893 | ||||||
FactSet Research Systems, Inc.(a) | 400 | 60,300 | ||||||
Moody’s Corp. | 4,293 | 410,926 | ||||||
|
| |||||||
904,576 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.6% |
| |||||||
Orange SA (France) | 6,372 | 105,650 | ||||||
SBA Communications Corp., | 400 | 41,216 | ||||||
Swisscom AG (Switzerland) | 196 | 99,603 | ||||||
Telefonica SA (Spain) | 8,943 | 97,507 | ||||||
|
| |||||||
343,976 | ||||||||
|
| |||||||
Electric Utilities — 0.3% | ||||||||
Enel SpA (Italy) | 24,403 | 110,597 | ||||||
OGE Energy Corp.(a) | 1,400 | 41,426 | ||||||
|
| |||||||
152,023 | ||||||||
|
| |||||||
Electrical Equipment — 0.8% |
| |||||||
ABB Ltd. (Switzerland)* | 7,404 | 156,524 | ||||||
AMETEK, Inc.(a) | 900 | 43,281 | ||||||
Emerson Electric Co.(a) | 2,057 | 112,374 | ||||||
Gamesa Corp. Tecnologica SA (Spain) | 4,699 | 92,519 | ||||||
Vestas Wind Systems A/S (Denmark) | 1,295 | 92,646 | ||||||
|
| |||||||
497,344 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.0%(f) |
| |||||||
Universal Display Corp.*(a) | 200 | 11,662 |
See Accompanying Notes to the Consolidated Financial Statements.
8
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Energy Equipment & Services — 1.2% |
| |||||||
Atwood Oceanics, Inc.(a) | 7,700 | $ | 74,382 | |||||
Core Laboratories NV (Netherlands) | 600 | 80,196 | ||||||
Diamond Offshore Drilling, Inc.(a) | 1,700 | 41,242 | ||||||
Dril-Quip, Inc.*(a) | 300 | 19,446 | ||||||
FMC Technologies, Inc.* | 1,900 | 57,931 | ||||||
Helmerich & Payne, Inc.(a) | 1,200 | 79,344 | ||||||
Nabors Industries Ltd. | 4,200 | 41,160 | ||||||
Oceaneering International, Inc. | 1,200 | 43,980 | ||||||
Patterson-UTI Energy, Inc.(a) | 4,100 | 80,975 | ||||||
Rowan Cos. plc, Class A(a) | 5,200 | 97,812 | ||||||
Saipem SpA (Italy)* | 132,669 | 63,500 | ||||||
Technip SA (France)* | 1,168 | 68,355 | ||||||
|
| |||||||
748,323 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.4% |
| |||||||
Casey’s General Stores, Inc. | 1,177 | 131,824 | ||||||
Costco Wholesale Corp. | 3,868 | 572,967 | ||||||
Koninklijke Ahold NV (Netherlands) | 3,246 | 70,620 | ||||||
Kroger Co. (The)(a) | 700 | 24,773 | ||||||
Sprouts Farmers Market, Inc.*(a) | 1,300 | 36,491 | ||||||
|
| |||||||
836,675 | ||||||||
|
| |||||||
Food Products — 5.6% | ||||||||
Calavo Growers, Inc. | 6,590 | 376,750 | ||||||
Chocoladefabriken Lindt & Spruengli AG (Switzerland) | 8 | 585,659 | ||||||
ConAgra Foods, Inc. | 5,310 | 236,614 | ||||||
Dean Foods Co.(a) | 5,400 | 93,042 | ||||||
Hershey Co. (The)(a) | 500 | 46,555 | ||||||
Hormel Foods Corp.(a) | 1,900 | 73,245 | ||||||
Kraft Heinz Co. (The)(a) | 5,659 | 441,798 | ||||||
Lancaster Colony Corp. | 1,383 | 161,119 | ||||||
Marine Harvest ASA (Norway)* | 9,147 | 142,342 | ||||||
Mead Johnson Nutrition Co.(a) | 500 | 43,575 | ||||||
Mondelez International, Inc., | 8,079 | 347,074 | ||||||
Nestle SA (Switzerland) | 3,004 | 223,899 | ||||||
Pilgrim’s Pride Corp.* | 2,300 | 61,893 | ||||||
Pinnacle Foods, Inc.(a) | 900 | 38,331 | ||||||
Snyder’s-Lance, Inc. | 14,513 | 463,981 | ||||||
|
| |||||||
3,335,877 | ||||||||
|
|
SHARES | VALUE | |||||||
Health Care Equipment & Supplies — 1.8% |
| |||||||
ABIOMED, Inc.*(a) | 300 | $ | 29,142 | |||||
Align Technology, Inc.*(a) | 800 | 57,752 | ||||||
Becton Dickinson and Co. | 2,713 | 437,498 | ||||||
DENTSPLY SIRONA, Inc.(a) | 1,000 | 59,600 | ||||||
IDEXX Laboratories, Inc.*(b) | 4,547 | 383,540 | ||||||
NuVasive, Inc.*(a) | 700 | 37,058 | ||||||
ResMed, Inc.(a) | 700 | 39,060 | ||||||
TearLab Corp.*(a) | 6,972 | 5,438 | ||||||
|
| |||||||
1,049,088 | ||||||||
|
| |||||||
Health Care Providers & Services — 0.6% |
| |||||||
Cigna Corp.(a) | 983 | 136,185 | ||||||
Envision Healthcare Holdings, | 1,400 | 31,682 | ||||||
Humana, Inc.(a) | 1,065 | 188,579 | ||||||
Laboratory Corp. of America Holdings* | 250 | 31,330 | ||||||
|
| |||||||
387,776 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.5% |
| |||||||
Aramark | 14,154 | 474,301 | ||||||
Brinker International, Inc.(a) | 1,800 | 83,376 | ||||||
Buffalo Wild Wings, Inc.*(a)(b) | 746 | 99,710 | ||||||
Cracker Barrel Old Country Store, Inc. | 300 | 43,923 | ||||||
Darden Restaurants, Inc.(a) | 400 | 24,900 | ||||||
Domino’s Pizza, Inc.(a)(b) | 2,640 | 319,123 | ||||||
Hilton Worldwide Holdings, Inc.(b) | 13,303 | 293,331 | ||||||
Jack in the Box, Inc.(a) | 400 | 27,020 | ||||||
Marriott International, Inc., | 600 | 42,054 | ||||||
McDonald’s Corp.(a) | 100 | 12,649 | ||||||
Sodexo SA (France) | 601 | 60,690 | ||||||
Sonic Corp. | 16,447 | 565,284 | ||||||
Vail Resorts, Inc.(a) | 400 | 51,856 | ||||||
|
| |||||||
2,098,217 | ||||||||
|
| |||||||
Household Durables — 0.4% |
| |||||||
Cairn Homes plc (Ireland)* | 71,386 | 91,549 | ||||||
DR Horton, Inc. | 1,000 | 30,060 | ||||||
Electrolux AB, Series B (Sweden) | 1,978 | 57,391 | ||||||
Tempur Sealy International, Inc.* | 700 | 42,469 | ||||||
|
| |||||||
221,469 | ||||||||
|
| |||||||
Household Products — 0.0%(f) |
| |||||||
Kimberly-Clark Corp. | 200 | 25,038 | ||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
9
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Independent Power and Renewable Electricity Producers — 0.1% |
| |||||||
Calpine Corp.* | 3,400 | $ | 53,652 | |||||
|
| |||||||
Industrial Conglomerates — 0.6% | ||||||||
Carlisle Cos., Inc. | 300 | 30,570 | ||||||
General Electric Co. | 1,200 | 36,900 | ||||||
Rheinmetall AG (Germany) | 971 | 75,961 | ||||||
Roper Technologies, Inc.(a) | 200 | 35,218 | ||||||
Siemens AG (Germany) | 1,591 | 166,000 | ||||||
|
| |||||||
344,649 | ||||||||
|
| |||||||
Insurance — 1.6% | ||||||||
Aegon NV (Netherlands) | 15,278 | 87,680 | ||||||
Allianz SE (Germany) | 867 | 147,176 | ||||||
Arthur J Gallagher & Co. | 900 | 41,436 | ||||||
AXA SA (France) | 5,251 | 132,369 | ||||||
Chubb Ltd. (Switzerland) | 200 | 23,572 | ||||||
Mapfre SA (Spain) | 18,435 | 46,757 | ||||||
MBIA, Inc.*(a) | 5,600 | 43,680 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Germany) | 429 | 79,554 | ||||||
NN Group NV (Netherlands)(e) | 2,163 | 74,946 | ||||||
Old Republic International Corp.(a) | 3,300 | 61,017 | ||||||
Principal Financial Group, Inc.(a) | 1,000 | 42,680 | ||||||
SCOR SE (France) | 540 | 18,386 | ||||||
WR Berkley Corp.(b) | 2,521 | 141,176 | ||||||
|
| |||||||
940,429 | ||||||||
|
| |||||||
Internet & Catalog Retail — 0.6% | ||||||||
Wayfair, Inc., Class A*(a)(b) | 9,162 | 345,866 | ||||||
|
| |||||||
Internet Software & Services — 0.9% |
| |||||||
Alphabet, Inc., Class A*(c) | 381 | 269,702 | ||||||
Scout24 AG (Germany)*(d) | 1,683 | 61,697 | ||||||
Stamps.com, Inc.*(a) | 400 | 32,944 | ||||||
Yahoo!, Inc.*(a) | 4,781 | 174,985 | ||||||
|
| |||||||
539,328 | ||||||||
|
| |||||||
IT Services — 2.4% |
| |||||||
Cognizant Technology Solutions Corp., Class A*(a) | 500 | 29,185 | ||||||
Fidelity National Information Services, Inc.(a) | 500 | 32,900 | ||||||
MasterCard, Inc., Class A(a)(c) | 7,638 | 740,809 |
SHARES | VALUE | |||||||
IT Services (continued) | ||||||||
PayPal Holdings, Inc.*(c) | 11,910 | $ | 466,634 | |||||
Sopra Steria Group (France) | 560 | 65,085 | ||||||
Visa, Inc., Class A(a) | 1,551 | 119,799 | ||||||
|
| |||||||
1,454,412 | ||||||||
|
| |||||||
Leisure Products — 0.5% | ||||||||
Performance Sports Group Ltd.* | 31,568 | 117,117 | ||||||
Smith & Wesson Holding Corp.*(a) | 5,300 | 115,699 | ||||||
Trigano SA (France) | 1,198 | 70,235 | ||||||
|
| |||||||
303,051 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 1.4% |
| |||||||
Bruker Corp.(a) | 1,300 | 36,790 | ||||||
Lonza Group AG (Switzerland)* | 649 | 107,975 | ||||||
Produits Chimiques Auxiliaires et de Synthese (France) | 5,596 | 62,027 | ||||||
Thermo Fisher Scientific, Inc.(a)(c) | 4,540 | 654,895 | ||||||
|
| |||||||
861,687 | ||||||||
|
| |||||||
Machinery — 0.7% | ||||||||
Allison Transmission Holdings, Inc. | 1,000 | 28,810 | ||||||
Deere & Co.(a) | 300 | 25,233 | ||||||
Graco, Inc.(a) | 800 | 62,712 | ||||||
Joy Global, Inc.(a) | 700 | 14,910 | ||||||
Lincoln Electric Holdings, Inc. | 700 | 43,869 | ||||||
VAT Group AG (Switzerland)*(d) | 2,051 | 113,315 | ||||||
WABCO Holdings, Inc.* | 500 | 56,080 | ||||||
Washtec AG (Germany) | 2,136 | 86,582 | ||||||
|
| |||||||
431,511 | ||||||||
|
| |||||||
Media — 3.2% | ||||||||
AMC Networks, Inc., Class A*(a) | 500 | 32,615 | ||||||
Comcast Corp., Class A | 365 | 22,177 | ||||||
Discovery Communications, Inc., Class C*(a) | 1,400 | 37,492 | ||||||
DISH Network Corp., Class A*(a) | 2,905 | 143,188 | ||||||
Liberty Global plc LiLAC, Class A (United Kingdom)* | 806 | 30,249 | ||||||
Lions Gate Entertainment Corp.(a) | 1,400 | 31,080 | ||||||
Sinclair Broadcast Group, Inc., Class A(a) | 1,000 | 32,070 |
See Accompanying Notes to the Consolidated Financial Statements.
10
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Media (continued) | ||||||||
Stroeer SE & Co. KGaA (Germany) | 1,395 | $ | 68,686 | |||||
Time Warner Cable, Inc.(a) | 3,882 | 823,411 | ||||||
Time Warner, Inc.(c) | 2,766 | 207,837 | ||||||
Walt Disney Co. (The)(a) | 3,989 | 411,904 | ||||||
Wolters Kluwer NV (Netherlands) | 2,228 | 84,788 | ||||||
|
| |||||||
1,925,497 | ||||||||
|
| |||||||
Metals & Mining — 1.1% |
| |||||||
AK Steel Holding Corp.* | 18,900 | 88,452 | ||||||
AngloGold Ashanti Ltd., ADR (South Africa)* | 3,600 | 59,220 | ||||||
APERAM SA (Luxembourg)* | 2,360 | 92,757 | ||||||
ArcelorMittal (Luxembourg)* | 9,871 | 55,746 | ||||||
Barrick Gold Corp. (Canada)(a) | 2,300 | 44,551 | ||||||
Goldcorp, Inc. (Canada) | 1,700 | 34,255 | ||||||
Newmont Mining Corp. | 4,727 | 165,303 | ||||||
Reliance Steel & Aluminum Co.(a) | 800 | 59,176 | ||||||
Steel Dynamics, Inc.(a) | 3,100 | 78,151 | ||||||
|
| |||||||
677,611 | ||||||||
|
| |||||||
Multiline Retail — 0.1% | ||||||||
Big Lots, Inc.(a) | 1,000 | 45,860 | ||||||
J.C. Penney Co., Inc.*(a) | 2,600 | 24,128 | ||||||
|
| |||||||
69,988 | ||||||||
|
| |||||||
Multi-Utilities — 0.4% | ||||||||
CMS Energy Corp. | 1,000 | 40,680 | ||||||
DTE Energy Co.(a) | 800 | 71,328 | ||||||
SCANA Corp. | 500 | 34,345 | ||||||
Veolia Environnement SA (France) | 3,208 | 78,811 | ||||||
|
| |||||||
225,164 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.3% |
| |||||||
Kinder Morgan, Inc. | 2,000 | 35,520 | ||||||
Koninklijke Vopak NV (Netherlands) | 1,891 | 102,732 | ||||||
Laredo Petroleum, Inc.*(a) | 4,400 | 53,592 | ||||||
Occidental Petroleum Corp.(a) | 400 | 30,660 | ||||||
PBF Energy, Inc., Class A(a) | 1,400 | 45,052 | ||||||
PDC Energy, Inc.*(a) | 500 | 31,395 | ||||||
Royal Dutch Shell plc, Class A (Netherlands) | 9,946 | 261,940 | ||||||
Saras SpA (Italy)* | 30,467 | 53,027 | ||||||
TOTAL SA (France) | 2,742 | 137,928 | ||||||
|
| |||||||
751,846 | ||||||||
|
|
SHARES | VALUE | |||||||
Paper & Forest Products — 0.1% | ||||||||
UPM-Kymmene OYJ (Finland) | 3,699 | $ | 70,649 | |||||
|
| |||||||
Personal Products — 0.4% | ||||||||
Herbalife Ltd.*(a) | 500 | 28,975 | ||||||
Nu Skin Enterprises, Inc., | 1,500 | 61,155 | ||||||
Unilever NV, CVA (United Kingdom) | 3,389 | 148,878 | ||||||
|
| |||||||
239,008 | ||||||||
|
| |||||||
Pharmaceuticals — 2.4% | ||||||||
Allergan plc* | 2,579 | 558,508 | ||||||
Depomed, Inc.*(a) | 2,100 | 36,498 | ||||||
Eli Lilly & Co.(a) | 900 | 67,977 | ||||||
Horizon Pharma plc*(a) | 2,900 | 44,573 | ||||||
Novartis AG (Switzerland) | 2,500 | 190,764 | ||||||
Novo Nordisk A/S, Class B (Denmark) | 3,372 | 188,270 | ||||||
Roche Holding AG (Switzerland) | 976 | 246,722 | ||||||
Sanofi (France) | 564 | 46,569 | ||||||
UCB SA (Belgium) | 802 | 60,013 | ||||||
|
| |||||||
1,439,894 | ||||||||
|
| |||||||
Professional Services — 0.1% | ||||||||
ManpowerGroup, Inc.(a) | 500 | 38,515 | ||||||
Robert Half International, Inc.(a) | 900 | 34,479 | ||||||
|
| |||||||
72,994 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITs) — 1.0% |
| |||||||
CubeSmart(a) | 1,000 | 29,610 | ||||||
CyrusOne, Inc.(a) | 1,400 | 61,782 | ||||||
DuPont Fabros Technology, Inc. | 1,200 | 47,784 | ||||||
Potlatch Corp. | 10,346 | 364,386 | ||||||
Starwood Property Trust, Inc.(a) | 4,500 | 87,120 | ||||||
|
| |||||||
590,682 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.2% |
| |||||||
CBRE Group, Inc., Class A*(a) | 1,500 | 44,445 | ||||||
Deutsche Wohnen AG (Germany) | 2,477 | 75,857 | ||||||
|
| |||||||
120,302 | ||||||||
|
| |||||||
Road & Rail — 0.9% | ||||||||
CSX Corp.(a) | 5,152 | 140,495 | ||||||
Swift Transportation Co.*(a) | 1,600 | 26,592 | ||||||
Union Pacific Corp. | 4,509 | 393,320 | ||||||
|
| |||||||
560,407 | ||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
11
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Semiconductors & Semiconductor Equipment — 0.7% |
| |||||||
Broadcom Ltd. (Singapore)(a) | 650 | $ | 94,737 | |||||
Cirrus Logic, Inc.*(a) | 1,700 | 61,370 | ||||||
Infineon Technologies AG (Germany) | 5,953 | 84,695 | ||||||
Inphi Corp.*(a) | 300 | 8,901 | ||||||
Intel Corp.(a) | 2,300 | 69,644 | ||||||
Maxim Integrated Products, Inc.(a) | 900 | 32,148 | ||||||
Microchip Technology, Inc.(a) | 700 | 34,013 | ||||||
NXP Semiconductors NV (Netherlands)*(a) | 300 | 25,584 | ||||||
|
| |||||||
411,092 | ||||||||
|
| |||||||
Software — 0.9% | ||||||||
Electronic Arts, Inc.*(a) | 500 | 30,925 | ||||||
Infoblox, Inc.* | 2,400 | 40,152 | ||||||
Manhattan Associates, Inc.*(a) | 800 | 48,432 | ||||||
Microsoft Corp.(c) | 4,704 | 234,589 | ||||||
Software AG (Germany) | 2,022 | 77,261 | ||||||
SS&C Technologies Holdings, | 500 | 30,575 | ||||||
Take-Two Interactive Software, | 1,300 | 44,434 | ||||||
VMware, Inc., Class A*(a) | 800 | 45,528 | ||||||
|
| |||||||
551,896 | ||||||||
|
| |||||||
Specialty Retail — 3.9% | ||||||||
Abercrombie & Fitch Co., | 3,000 | 80,190 | ||||||
Advance Auto Parts, Inc.(a) | 400 | 62,440 | ||||||
AutoNation, Inc.* | 11,650 | 590,072 | ||||||
AutoZone, Inc.* | 694 | 531,070 | ||||||
Children’s Place, Inc. (The)(a) | 800 | 62,328 | ||||||
Express, Inc.*(a) | 3,500 | 63,630 | ||||||
Five Below, Inc.*(a) | 1,100 | 45,870 | ||||||
Foot Locker, Inc. | 600 | 36,864 | ||||||
GNC Holdings, Inc., Class A(a) | 1,200 | 29,232 | ||||||
Home Depot, Inc. (The) | 5,264 | 704,797 | ||||||
L Brands, Inc.(a) | 500 | 39,145 | ||||||
Lithia Motors, Inc., Class A | 400 | 33,208 | ||||||
Michael’s Cos., Inc. (The)*(a) | 1,500 | 42,645 | ||||||
Signet Jewelers Ltd.(a) | 300 | 32,568 | ||||||
|
| |||||||
2,354,059 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 1.7% |
| |||||||
Apple, Inc. | 300 | 28,122 | ||||||
EMC Corp.(a) | 28,825 | 752,620 | ||||||
HP, Inc.(a) | 3,300 | 40,491 |
SHARES | VALUE | |||||||
Technology Hardware, Storage & Peripherals (continued) |
| |||||||
Logitech International SA (Switzerland) | 4,303 | $ | 65,938 | |||||
S&T AG (Austria) | 7,454 | 59,277 | ||||||
Seagate Technology plc(a) | 2,900 | 63,133 | ||||||
Western Digital Corp.(a) | 800 | 32,692 | ||||||
|
| |||||||
1,042,273 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.2% |
| |||||||
adidas AG (Germany) | 1,035 | 133,445 | ||||||
Deckers Outdoor Corp.*(a) | 600 | 34,686 | ||||||
Fossil Group, Inc.* | 900 | 36,450 | ||||||
Kate Spade & Co.*(a) | 800 | 20,584 | ||||||
NIKE, Inc., Class B(a)(b) | 7,096 | 418,238 | ||||||
Pandora A/S (Denmark) | 397 | 51,552 | ||||||
Skechers U.S.A., Inc., Class A*(a) | 1,100 | 36,355 | ||||||
|
| |||||||
731,310 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.3% |
| |||||||
BofI Holding, Inc.* | 1,900 | 38,703 | ||||||
MGIC Investment Corp.* | 20,727 | 149,856 | ||||||
New York Community Bancorp, Inc.(a) | 800 | 12,024 | ||||||
|
| |||||||
200,583 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.1% |
| |||||||
MRC Global, Inc.*(a) | 2,000 | 27,960 | ||||||
WESCO International, Inc.* | 700 | 41,153 | ||||||
|
| |||||||
69,113 | ||||||||
|
| |||||||
Water Utilities — 0.2% | ||||||||
American Water Works Co., Inc.*(c) | 1,619 | 117,798 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.2% |
| |||||||
T-Mobile US, Inc.*(a) | 3,688 | 144,865 | ||||||
| ||||||||
TOTAL COMMON STOCKS (COST $38,110,510) | 40,441,333 | |||||||
| ||||||||
NO. OF CONTRACTS | ||||||||
OPTIONS PURCHASED — 0.6% |
| |||||||
Call Option — 0.1% | ||||||||
Allergan plc | 4 | 60 | ||||||
Allergan plc | 8 | 40 | ||||||
DISH Network Corp. | 20 | 8,000 |
See Accompanying Notes to the Consolidated Financial Statements.
12
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
NO. OF CONTRACTS | VALUE | |||||||
Call Option (continued) | ||||||||
Yahoo!, Inc. | 29 | $ | 8,468 | |||||
|
| |||||||
16,568 | ||||||||
|
| |||||||
Put Option — 0.5% | ||||||||
Alibaba Group Holding Ltd. | 29 | 9,135 | ||||||
Align Technology, Inc. | 24 | 7,200 | ||||||
Align Technology, Inc. | 28 | 6,860 | ||||||
Altria Group, Inc. | 55 | 5,720 | ||||||
American Airlines Group, Inc. | 32 | 6,400 | ||||||
athenahealth, Inc. | 7 | 2,800 | ||||||
Autoliv, Inc. | 13 | 65 | ||||||
Autoliv, Inc. | 17 | 3,400 | ||||||
BlackRock, Inc. | 3 | 870 | ||||||
BlackRock, Inc. | 4 | 700 | ||||||
Bridgepoint Education, Inc. | 135 | 10,800 | ||||||
Broadcom Ltd. | 7 | 9,590 | ||||||
Brunswick Corp. | 28 | 8,680 | ||||||
Coca-Cola Co. (The) | 105 | 14,910 | ||||||
Comfort Systems USA, Inc. | 56 | 10,080 | ||||||
Dave & Buster’s Entertainment, Inc. | 41 | 3,075 | ||||||
Delta Air Lines, Inc. | 28 | 2,212 | ||||||
Dorman Products, Inc. | 17 | 3,655 | ||||||
Dunkin’ Brands Group, Inc. | 35 | 3,850 | ||||||
Equinix, Inc. | 5 | 1,200 | ||||||
FactSet Research Systems, Inc. | 8 | 3,360 |
NO. OF CONTRACTS | VALUE | |||||||
Put Option (continued) | ||||||||
Foot Locker, Inc. | 26 | $ | 3,640 | |||||
FTI Consulting, Inc. | 37 | 4,440 | ||||||
Hawaiian Holdings, Inc. | 20 | 6,600 | ||||||
Home Depot, Inc. (The) | 29 | 174 | ||||||
Hormel Foods Corp. | 64 | 13,440 | ||||||
Humana, Inc. | 11 | 2,090 | ||||||
Intel Corp. | 83 | 14,359 | ||||||
Intel Corp. | 47 | 4,465 | ||||||
iShares MSCI Brazil Capped Fund | 44 | 7,700 | ||||||
iShares U.S. Real Estate Fund | 75 | 7,350 | ||||||
Kroger Co. (The) | 50 | 14,500 | ||||||
Lear Corp. | 13 | 1,625 | ||||||
McCormick & Co., Inc. | 24 | 600 | ||||||
McCormick & Co., Inc. | 21 | 9,660 | ||||||
Netflix, Inc. | 12 | 9,060 | ||||||
Newell Brands, Inc. | 29 | 4,495 | ||||||
NXP Semiconductors NV | 13 | 10,010 | ||||||
Pool Corp. | 21 | 105 | ||||||
Priceline Group, Inc. (The) | 2 | 7,180 | ||||||
Realty Income Corp. | 26 | 5,070 | ||||||
S&P 500 Index | 5 | 4,700 | ||||||
Splunk, Inc. | 20 | 4,000 | ||||||
T Rowe Price Group, Inc. | 25 | 7,125 | ||||||
Tempur Sealy International, Inc. | 16 | 1,680 |
See Accompanying Notes to the Consolidated Financial Statements.
13
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
NO. OF CONTRACTS | VALUE | |||||||
Put Option (continued) | ||||||||
Tempur Sealy International, Inc. | 18 | $ | 4,680 | |||||
Tesla Motors, Inc. | 4 | 4,320 | ||||||
Tesla Motors, Inc. | 8 | 664 | ||||||
Tesla Motors, Inc. | 6 | 2,280 | ||||||
Texas Roadhouse, Inc. | 25 | 3,375 | ||||||
Tyson Foods, Inc. | 29 | 8,555 | ||||||
Vulcan Materials Co. | 18 | 630 | ||||||
Western Union Co. (The) | 65 | 650 | ||||||
Western Union Co. (The) | 84 | 2,100 | ||||||
Western Union Co. (The) | 97 | 7,275 | ||||||
Western Union Co. (The) | 172 | 688 | ||||||
Workday, Inc. | 26 | 4,680 | ||||||
WW Grainger, Inc. | 9 | 1,800 | ||||||
|
| |||||||
300,327 | ||||||||
| ||||||||
TOTAL OPTIONS PURCHASED (COST $547,671) | 316,895 | |||||||
| ||||||||
SHARES | ||||||||
EXCHANGE TRADED FUND — 0.5% |
| |||||||
iShares iBoxx $ High Yield Corporate Bond Fund(a) | 3,451 | 289,366 | ||||||
|
| |||||||
CONVERTIBLE PREFERRED STOCK — 0.3% |
| |||||||
Pharmaceuticals — 0.3% | ||||||||
Allergan plc (Ireland) A, 5.50%, 3/1/2018 | 241 | 195,569 | ||||||
|
| |||||||
PREFERRED STOCKS — 0.3% |
| |||||||
Auto Components — 0.1% |
| |||||||
Schaeffler AG (Germany) | 4,061 | 60,916 | ||||||
|
| |||||||
Construction Materials — 0.1% | ||||||||
STO SE & Co. KGaA (Germany) | 649 | 80,110 | ||||||
|
|
SHARES | VALUE | |||||||
Household Products — 0.1% | ||||||||
Henkel AG & Co. KGaA (Germany) | 360 | $ | 41,119 | |||||
| ||||||||
TOTAL PREFERRED STOCKS (COST $187,216) | 182,145 | |||||||
| ||||||||
PRINCIPAL AMOUNT | ||||||||
SHORT-TERM INVESTMENTS — 9.6% |
| |||||||
U.S. TREASURY OBLIGATIONS — 9.6% |
| |||||||
US Treasury Bill | ||||||||
0.23%, 5/26/2016(g) | $1,200,000 | 1,199,868 | ||||||
0.39%, 12/8/2016(c)(g) | 500,000 | 498,916 | ||||||
0.66%, 1/5/2017(c)(g) | 1,200,000 | 1,196,676 | ||||||
0.52%, 2/2/2017(c)(g) | 500,000 | 498,300 | ||||||
0.65%, 3/2/2017(c)(g) | 600,000 | 597,578 | ||||||
0.60%, 3/30/2017(c)(g) | 900,000 | 895,873 | ||||||
0.59%, 4/27/2017(g) | 900,000 | 895,042 | ||||||
| ||||||||
TOTAL SHORT-TERM INVESTMENTS (COST $5,777,694) | 5,782,253 | |||||||
| ||||||||
TOTAL LONG POSITIONS (COST $45,150,868) | 47,207,561 | |||||||
| ||||||||
SHARES | ||||||||
SHORT POSITIONS — (22.8)% |
| |||||||
COMMON STOCKS — (12.0)% |
| |||||||
Aerospace & Defense — (0.1)% |
| |||||||
Textron, Inc. | (900 | ) | (34,812 | ) | ||||
|
| |||||||
Airlines — (0.1)% | ||||||||
Southwest Airlines Co. | (1,300 | ) | (57,993 | ) | ||||
Spirit Airlines, Inc.* | (600 | ) | (26,358 | ) | ||||
|
| |||||||
(84,351 | ) | |||||||
|
| |||||||
Auto Components — (0.1)% |
| |||||||
Tenneco, Inc.* | (700 | ) | (37,310 | ) | ||||
|
| |||||||
Automobiles — (0.3)% |
| |||||||
Fiat Chrysler Automobiles NV (United Kingdom) | (10,700 | ) | (86,563 | ) | ||||
Harley-Davidson, Inc. | (800 | ) | (38,264 | ) | ||||
Tesla Motors, Inc.* | (300 | ) | (72,228 | ) | ||||
|
| |||||||
(197,055 | ) | |||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
14
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Banks — (0.4)% | ||||||||
CIT Group, Inc. | (1,800 | ) | $ | (62,226 | ) | |||
Comerica, Inc. | (1,800 | ) | (79,920 | ) | ||||
ICICI Bank Ltd., ADR (India) | (1,300 | ) | (9,165 | ) | ||||
Regions Financial Corp. | (5,900 | ) | (55,342 | ) | ||||
Zions Bancorporation | (1,400 | ) | (38,528 | ) | ||||
|
| |||||||
(245,181 | ) | |||||||
|
| |||||||
Beverages — (0.1)% | ||||||||
Boston Beer Co., Inc. (The), Class A* | (200 | ) | (31,216 | ) | ||||
Coca-Cola Co. (The) | (300 | ) | (13,440 | ) | ||||
Molson Coors Brewing Co., Class B | (300 | ) | (28,689 | ) | ||||
|
| |||||||
(73,345 | ) | |||||||
|
| |||||||
Biotechnology — (0.6)% | ||||||||
Amgen, Inc. | (200 | ) | (31,660 | ) | ||||
BioMarin Pharmaceutical, Inc.* | (300 | ) | (25,404 | ) | ||||
Bluebird Bio, Inc.* | (900 | ) | (39,915 | ) | ||||
Celator Pharmaceuticals, Inc.* | (2,400 | ) | (36,168 | ) | ||||
Clovis Oncology, Inc.* | (2,600 | ) | (36,166 | ) | ||||
Gilead Sciences, Inc. | (300 | ) | (26,463 | ) | ||||
Ligand Pharmaceuticals, Inc.* | (300 | ) | (36,261 | ) | ||||
Neurocrine Biosciences, Inc.* | (800 | ) | (36,464 | ) | ||||
Regeneron Pharmaceuticals, Inc.* | (100 | ) | (37,671 | ) | ||||
Sarepta Therapeutics, Inc.* | (2,500 | ) | (35,475 | ) | ||||
Ultragenyx Pharmaceutical, Inc.* | (500 | ) | (33,810 | ) | ||||
|
| |||||||
(375,457 | ) | |||||||
|
| |||||||
Building Products — (0.3)% | ||||||||
Fortune Brands Home & Security, Inc. | (700 | ) | (38,787 | ) | ||||
Masco Corp. | (1,000 | ) | (30,710 | ) | ||||
USG Corp.* | (3,700 | ) | (99,937 | ) | ||||
|
| |||||||
(169,434 | ) | |||||||
|
| |||||||
Capital Markets — (0.4)% | ||||||||
Ameriprise Financial, Inc. | (300 | ) | (28,770 | ) | ||||
Franklin Resources, Inc. | (1,400 | ) | (52,276 | ) | ||||
Goldman Sachs Group, Inc. (The) | (400 | ) | (65,644 | ) | ||||
Northern Trust Corp. | (500 | ) | (35,540 | ) | ||||
Waddell & Reed Financial, Inc., Class A | (1,800 | ) | (36,612 | ) | ||||
|
| |||||||
(218,842 | ) | |||||||
|
|
SHARES | VALUE | |||||||
Chemicals — (0.1)% | ||||||||
Mosaic Co. (The) | (1,900 | ) | $ | (53,181 | ) | |||
Potash Corp. of Saskatchewan, Inc. (Canada) | (500 | ) | (8,860 | ) | ||||
|
| |||||||
(62,041 | ) | |||||||
|
| |||||||
Commercial Services & Supplies — (0.1)% |
| |||||||
Cintas Corp. | (500 | ) | (44,890 | ) | ||||
|
| |||||||
Communications Equipment — (0.1)% |
| |||||||
Cisco Systems, Inc. | (1,100 | ) | (30,239 | ) | ||||
Telefonaktiebolaget LM Ericsson, ADR (Sweden) | (4,800 | ) | (38,832 | ) | ||||
|
| |||||||
(69,071 | ) | |||||||
|
| |||||||
Consumer Finance — (0.1)% |
| |||||||
American Express Co. | (500 | ) | (32,715 | ) | ||||
SLM Corp.* | (5,800 | ) | (39,266 | ) | ||||
|
| |||||||
(71,981 | ) | |||||||
|
| |||||||
Containers & Packaging — (0.2)% |
| |||||||
Ball Corp. | (500 | ) | (35,690 | ) | ||||
Crown Holdings, Inc.* | (700 | ) | (37,072 | ) | ||||
Sealed Air Corp. | (600 | ) | (28,416 | ) | ||||
|
| |||||||
(101,178 | ) | |||||||
|
| |||||||
Diversified Telecommunication Services — (0.1)% |
| |||||||
CenturyLink, Inc. | (1,000 | ) | (30,950 | ) | ||||
|
| |||||||
Electrical Equipment — (0.1)% | ||||||||
Emerson Electric Co. | (500 | ) | (27,315 | ) | ||||
Rockwell Automation, Inc. | (300 | ) | (34,041 | ) | ||||
|
| |||||||
(61,356 | ) | |||||||
|
| |||||||
Electronic Equipment, Instruments & Components — (0.1)% |
| |||||||
Amphenol Corp., Class A | (200 | ) | (11,166 | ) | ||||
Fitbit, Inc., Class A* | (2,600 | ) | (47,450 | ) | ||||
|
| |||||||
(58,616 | ) | |||||||
|
| |||||||
Energy Equipment & Services — (0.2)% |
| |||||||
Ensco plc, Class A (United Kingdom) | (2,700 | ) | (32,292 | ) | ||||
Halliburton Co. | (700 | ) | (28,917 | ) | ||||
Transocean Ltd. (Switzerland) | (3,700 | ) | (40,996 | ) | ||||
US Silica Holdings, Inc. | (1,500 | ) | (38,325 | ) | ||||
|
| |||||||
(140,530 | ) | |||||||
|
| |||||||
Food & Staples Retailing — (0.2)% |
| |||||||
Casey’s General Stores, Inc. | (300 | ) | (33,600 | ) | ||||
Sysco Corp. | (700 | ) | (32,249 | ) | ||||
Wal-Mart Stores, Inc. | (400 | ) | (26,748 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
15
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Food & Staples Retailing (continued) |
| |||||||
Whole Foods Market, Inc. | (800 | ) | $ | (23,264 | ) | |||
|
| |||||||
(115,861 | ) | |||||||
|
| |||||||
Food Products — (0.3)% | ||||||||
Archer-Daniels-Midland Co. | (700 | ) | (27,958 | ) | ||||
Bunge Ltd. | (1,200 | ) | (75,000 | ) | ||||
Hain Celestial Group, Inc. (The)* | (900 | ) | (37,674 | ) | ||||
Mondelez International, Inc., Class A | (900 | ) | (38,664 | ) | ||||
|
| |||||||
(179,296 | ) | |||||||
|
| |||||||
Gas Utilities — 0.0%(f) | ||||||||
Atmos Energy Corp. | (300 | ) | (21,765 | ) | ||||
|
| |||||||
Health Care Equipment & Supplies — (0.2)% |
| |||||||
Baxter International, Inc. | (700 | ) | (30,954 | ) | ||||
Becton Dickinson and Co. | (200 | ) | (32,252 | ) | ||||
DexCom, Inc.* | (600 | ) | (38,628 | ) | ||||
Edwards Lifesciences Corp.* | (200 | ) | (21,242 | ) | ||||
|
| |||||||
(123,076 | ) | |||||||
|
| |||||||
Health Care Providers & Services — (0.5)% |
| |||||||
Acadia Healthcare Co., Inc.* | (600 | ) | (37,914 | ) | ||||
AmerisourceBergen Corp. | (300 | ) | (25,530 | ) | ||||
Henry Schein, Inc.* | (400 | ) | (67,480 | ) | ||||
McKesson Corp. | (100 | ) | (16,782 | ) | ||||
Patterson Cos., Inc. | (900 | ) | (39,015 | ) | ||||
Quest Diagnostics, Inc. | (900 | ) | (67,653 | ) | ||||
Tenet Healthcare Corp.* | (1,200 | ) | (38,028 | ) | ||||
UnitedHealth Group, Inc. | (200 | ) | (26,336 | ) | ||||
|
| |||||||
(318,738 | ) | |||||||
|
| |||||||
Health Care Technology — (0.1)% |
| |||||||
athenahealth, Inc.* | (300 | ) | (39,990 | ) | ||||
Cerner Corp.* | (600 | ) | (33,684 | ) | ||||
|
| |||||||
(73,674 | ) | |||||||
|
| |||||||
Hotels, Restaurants & Leisure — (0.4)% |
| |||||||
Chipotle Mexican Grill, Inc.* | (100 | ) | (42,097 | ) | ||||
Norwegian Cruise Line Holdings Ltd.* | (1,000 | ) | (48,890 | ) | ||||
Six Flags Entertainment Corp. | (700 | ) | (42,035 | ) | ||||
Wynn Resorts Ltd. | (1,200 | ) | (105,960 | ) | ||||
|
| |||||||
(238,982 | ) | |||||||
|
| |||||||
Household Durables — (0.2)% |
| |||||||
KB Home | (5,400 | ) | (73,278 | ) | ||||
Whirlpool Corp. | (200 | ) | (34,828 | ) | ||||
|
| |||||||
(108,106 | ) | |||||||
|
|
SHARES | VALUE | |||||||
Household Products — (0.1)% |
| |||||||
Spectrum Brands Holdings, Inc. | (400 | ) | $ | (45,440 | ) | |||
|
| |||||||
Independent Power and Renewable Electricity Producers — (0.1)% |
| |||||||
NRG Energy, Inc. | (4,900 | ) | (73,990 | ) | ||||
Insurance — (0.1)% | ||||||||
Prudential Financial, Inc. | (600 | ) | (46,584 | ) | ||||
RenaissanceRe Holdings Ltd. (Bermuda) | (300 | ) | (33,273 | ) | ||||
|
| |||||||
(79,857 | ) | |||||||
|
| |||||||
Internet & Catalog Retail — (0.2)% |
| |||||||
Groupon, Inc.* | (9,000 | ) | (32,580 | ) | ||||
Liberty Interactive Corp. QVC Group, Class A* | (1,500 | ) | (39,300 | ) | ||||
Liberty Ventures, Series A* | (800 | ) | (32,000 | ) | ||||
Netflix, Inc.* | (400 | ) | (36,012 | ) | ||||
|
| |||||||
(139,892 | ) | |||||||
|
| |||||||
Internet Software & Services — (0.2)% |
| |||||||
Akamai Technologies, Inc.* | (600 | ) | (30,594 | ) | ||||
Twitter, Inc.* | (1,800 | ) | (26,316 | ) | ||||
Yandex NV, Class A (Russia)* | (1,900 | ) | (38,893 | ) | ||||
Yelp, Inc.* | (600 | ) | (12,600 | ) | ||||
|
| |||||||
(108,403 | ) | |||||||
|
| |||||||
IT Services — (0.1)% | ||||||||
Alliance Data Systems Corp.* | (100 | ) | (20,331 | ) | ||||
First Data Corp., Class A* | (3,200 | ) | (36,448 | ) | ||||
|
| |||||||
(56,779 | ) | |||||||
|
| |||||||
Leisure Products — (0.1)% | ||||||||
Brunswick Corp. | (700 | ) | (33,621 | ) | ||||
Polaris Industries, Inc. | (400 | ) | (39,152 | ) | ||||
|
| |||||||
(72,773 | ) | |||||||
|
| |||||||
Life Sciences Tools & Services — (0.2)% |
| |||||||
Charles River Laboratories | ||||||||
International, Inc.* | (700 | ) | (55,489 | ) | ||||
Mettler-Toledo International, Inc.* | (200 | ) | (71,590 | ) | ||||
|
| |||||||
(127,079 | ) | |||||||
|
| |||||||
Machinery — (0.1)% |
| |||||||
AGCO Corp. | (700 | ) | (37,429 | ) | ||||
Flowserve Corp. | (800 | ) | (39,048 | ) | ||||
|
| |||||||
(76,477 | ) | |||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
16
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Media — (0.3)% | ||||||||
CBS Corp., Class B | (700 | ) | $ | (39,137 | ) | |||
Interpublic Group of Cos., Inc. (The) | (1,700 | ) | (38,998 | ) | ||||
Liberty Global plc, Series C (United Kingdom)* | (800 | ) | (29,280 | ) | ||||
Liberty Global plc, Class A (United Kingdom)* | (800 | ) | (30,184 | ) | ||||
Thomson Reuters Corp. | (900 | ) | (37,017 | ) | ||||
|
| |||||||
(174,616 | ) | |||||||
|
| |||||||
Metals & Mining — (0.2)% | ||||||||
Alcoa, Inc. | (3,300 | ) | (36,861 | ) | ||||
Allegheny Technologies, Inc. | (3,800 | ) | (62,092 | ) | ||||
Cliffs Natural Resources, Inc.* | (7,400 | ) | (38,998 | ) | ||||
|
| |||||||
(137,951 | ) | |||||||
|
| |||||||
Multiline Retail — (0.2)% | ||||||||
Dillard’s, Inc., Class A | (300 | ) | (21,135 | ) | ||||
Kohl’s Corp. | (800 | ) | (35,440 | ) | ||||
Macy’s, Inc. | (700 | ) | (27,713 | ) | ||||
Nordstrom, Inc. | (600 | ) | (30,678 | ) | ||||
|
| |||||||
(114,966 | ) | |||||||
|
| |||||||
Multi-Utilities — (0.1)% | ||||||||
Consolidated Edison, Inc. | (400 | ) | (29,840 | ) | ||||
Public Service Enterprise Group, Inc. | (700 | ) | (32,291 | ) | ||||
|
| |||||||
(62,131 | ) | |||||||
|
| |||||||
Oil, Gas & Consumable Fuels — (0.4)% |
| |||||||
Carrizo Oil & Gas, Inc.* | (1,200 | ) | (42,444 | ) | ||||
Golar LNG Ltd. (Bermuda) | (1,700 | ) | (28,186 | ) | ||||
Gulfport Energy Corp.* | (1,400 | ) | (43,820 | ) | ||||
Murphy Oil Corp. | (1,300 | ) | (46,462 | ) | ||||
Rice Energy, Inc.* | (3,600 | ) | (62,316 | ) | ||||
Royal Dutch Shell plc, Class A, ADR (Netherlands) | (17 | ) | (899 | ) | ||||
Whiting Petroleum Corp.* | (3,200 | ) | (38,400 | ) | ||||
|
| |||||||
(262,527 | ) | |||||||
|
| |||||||
Paper & Forest Products — (0.1)% | ||||||||
Louisiana-Pacific Corp.* | (2,800 | ) | (47,600 | ) | ||||
|
| |||||||
Pharmaceuticals — (0.5)% | ||||||||
Bristol-Myers Squibb Co. | (500 | ) | (36,090 | ) | ||||
Jazz Pharmaceuticals plc (Ireland)* | (700 | ) | (105,490 | ) | ||||
Mallinckrodt plc* | (400 | ) | (25,008 | ) | ||||
Pacira Pharmaceuticals, Inc.* | (500 | ) | (27,055 | ) | ||||
Relypsa, Inc.* | (1,600 | ) | (28,960 | ) | ||||
Shire plc, ADR (Ireland) | (200 | ) | (37,484 | ) |
SHARES | VALUE | |||||||
Pharmaceuticals (continued) |
| |||||||
Valeant Pharmaceuticals International, Inc.* | (1,000 | ) | $ | (33,360 | ) | |||
Zoetis, Inc. | (600 | ) | (28,218 | ) | ||||
|
| |||||||
(321,665 | ) | |||||||
|
| |||||||
Professional Services — (0.1)% | ||||||||
Nielsen Holdings plc | (700 | ) | (36,498 | ) | ||||
|
| |||||||
Real Estate Investment Trusts (REITs) — (1.1)% |
| |||||||
Alexandria Real Estate Equities, Inc. | (400 | ) | (37,180 | ) | ||||
Digital Realty Trust, Inc. | (400 | ) | (35,192 | ) | ||||
Equinix, Inc. | (200 | ) | (66,070 | ) | ||||
Equity LifeStyle Properties, Inc. | (400 | ) | (27,396 | ) | ||||
HCP, Inc. | (1,700 | ) | (57,511 | ) | ||||
Iron Mountain, Inc. | (900 | ) | (32,877 | ) | ||||
Kilroy Realty Corp. | (800 | ) | (51,848 | ) | ||||
Kimco Realty Corp. | (1,400 | ) | (39,368 | ) | ||||
Liberty Property Trust | (900 | ) | (31,410 | ) | ||||
Mid-America Apartment Communities, Inc. | (400 | ) | (38,284 | ) | ||||
National Retail Properties, Inc. | (1,200 | ) | (52,512 | ) | ||||
Prologis, Inc. | (200 | ) | (9,082 | ) | ||||
Public Storage | (100 | ) | (24,481 | ) | ||||
SL Green Realty Corp. | (300 | ) | (31,524 | ) | ||||
STORE Capital Corp. | (1,500 | ) | (38,505 | ) | ||||
Sun Communities, Inc. | (400 | ) | (27,148 | ) | ||||
Ventas, Inc. | (700 | ) | (43,484 | ) | ||||
Weyerhaeuser Co. | (1,000 | ) | (32,120 | ) | ||||
|
| |||||||
(675,992 | ) | |||||||
|
| |||||||
Real Estate Management & Development — (0.2)% |
| |||||||
Jones Lang LaSalle, Inc. | (500 | ) | (57,585 | ) | ||||
Realogy Holdings Corp.* | (800 | ) | (28,592 | ) | ||||
|
| |||||||
(86,177 | ) | |||||||
|
| |||||||
Road & Rail — (0.2)% | ||||||||
Avis Budget Group, Inc.* | (1,800 | ) | (45,180 | ) | ||||
Hertz Global Holdings, Inc.* | (4,300 | ) | (39,818 | ) | ||||
Ryder System, Inc. | (400 | ) | (27,568 | ) | ||||
|
| |||||||
(112,566 | ) | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — (0.3)% |
| |||||||
Advanced Micro Devices, Inc.* | (9,600 | ) | (34,080 | ) | ||||
Cree, Inc.* | (2,700 | ) | (66,177 | ) | ||||
First Solar, Inc.* | (500 | ) | (27,920 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
17
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
SHARES | VALUE | |||||||
Semiconductors & Semiconductor Equipment (continued) |
| |||||||
Micron Technology, Inc.* | (3,600 | ) | $ | (38,700 | ) | |||
Synaptics, Inc.* | (300 | ) | (21,465 | ) | ||||
|
| |||||||
(188,342 | ) | |||||||
|
| |||||||
Software — (0.5)% | ||||||||
Activision Blizzard, Inc. | (900 | ) | (31,023 | ) | ||||
FireEye, Inc.* | (3,700 | ) | (64,195 | ) | ||||
Intuit, Inc. | (400 | ) | (40,356 | ) | ||||
NetSuite, Inc.* | (500 | ) | (40,520 | ) | ||||
ServiceNow, Inc.* | (700 | ) | (50,036 | ) | ||||
Synopsys, Inc.* | (800 | ) | (38,016 | ) | ||||
Verint Systems, Inc.* | (1,000 | ) | (33,840 | ) | ||||
|
| |||||||
(297,986 | ) | |||||||
|
| |||||||
Specialty Retail — (0.6)% | ||||||||
CarMax, Inc.* | (500 | ) | (26,475 | ) | ||||
Chico’s FAS, Inc. | (2,200 | ) | (27,742 | ) | ||||
DSW, Inc., Class A | (1,500 | ) | (36,855 | ) | ||||
Gap, Inc. (The) | (1,700 | ) | (39,406 | ) | ||||
Home Depot, Inc. (The) | (300 | ) | (40,167 | ) | ||||
Lowe’s Cos., Inc. | (500 | ) | (38,010 | ) | ||||
Ross Stores, Inc. | (1,100 | ) | (62,458 | ) | ||||
Ulta Salon Cosmetics & Fragrance, Inc.* | (200 | ) | (41,656 | ) | ||||
Urban Outfitters, Inc.* | (1,000 | ) | (30,320 | ) | ||||
Williams-Sonoma, Inc. | (700 | ) | (41,146 | ) | ||||
|
| |||||||
(384,235 | ) | |||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — (0.3)% |
| |||||||
Carter’s, Inc. | (300 | ) | (32,001 | ) | ||||
Coach, Inc. | (800 | ) | (32,216 | ) | ||||
PVH Corp. | (600 | ) | (57,360 | ) | ||||
Under Armour, Inc., Class A* | (1,100 | ) | (48,334 | ) | ||||
|
| |||||||
(169,911 | ) | |||||||
|
| |||||||
Tobacco — (0.1)% | ||||||||
Philip Morris International, Inc. | (300 | ) | (29,436 | ) | ||||
|
| |||||||
Water Utilities — (0.1)% | ||||||||
American Water Works Co., Inc.* | (400 | ) | (29,104 | ) | ||||
|
| |||||||
Wireless Telecommunication Services — (0.1)% |
| |||||||
Sprint Corp.* | (13,300 | ) | (45,619 | ) | ||||
| ||||||||
TOTAL COMMON STOCKS (PROCEEDS $(7,043,761)) | (7,213,910 | ) | ||||||
|
SHARES | VALUE | |||||||
EXCHANGE TRADED FUNDS — (10.8)% |
| |||||||
iShares Core S&P 500 Fund | (1,000 | ) | $ | (207,370 | ) | |||
SPDR S&P 500 Fund | (30,400 | ) | (6,271,520 | ) | ||||
| ||||||||
TOTAL EXCHANGE TRADED FUNDS (PROCEEDS $(6,149,680)) | (6,478,890 | ) | ||||||
| ||||||||
TOTAL SHORT POSITIONS (PROCEEDS $(13,193,441)) | (13,692,800 | ) | ||||||
| ||||||||
TOTAL INVESTMENTS — 55.8% (cost, net of proceeds $31,957,427) | 33,514,761 | |||||||
| ||||||||
OTHER ASSETS LESS LIABILITIES — 44.2% |
| 26,574,261 | ||||||
| ||||||||
NET ASSETS — 100.0% | 60,089,022 | |||||||
|
* | Non-income producing security. |
(a) | All or a portion of this security is segregated in connection with obligations for securities sold short with a total value of $10,092,924. |
(b) | The security or a portion of this security is on loan at 4/30/2016. The total value of securities on loan at 4/30/2016 was $1,946,408. |
(c) | All or a portion of the security pledged as collateral for swaps. |
(d) | Securities exempt from registration under Rule 144A or section 4(2), of the Securities Act of 1933. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser, unless noted otherwise, and may be resold, normally to qualified institutional buyers in transactions exempt from registration. Total market value of all such securities amounts to $398,356, which represents approximately 0.66% of net assets of the fund. |
(e) | Illiquid security. |
(f) | Represents less than 0.05% of net assets. |
(g) | The rate shown is the effective yield as of the close of the reporting period. |
Abbreviations:
ADR | — American Depositary Receipt | |
CVA | — Dutch Certification | |
OYJ | — Public Traded Company | |
REIT | — Real Estate Investment Trust | |
SPDR | — Standard & Poor’s Depository Receipts |
See Accompanying Notes to the Consolidated Financial Statements.
18
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation | $ | 3,319,255 | ||
Aggregate gross unrealized depreciation | (1,761,921 | ) | ||
|
| |||
Net unrealized appreciation | $ | 1,557,334 | ||
|
| |||
Federal income tax cost of investments | $ | 31,957,427 | ||
|
|
Put Options written
Exchange Traded
Number of Contracts | Issuer | Counterparty | Expiration Date | Premiums Received | Value at April 30, 2016 | Unrealized Appreciation/ (Depreciation) | ||||||
75 | iShares U.S. Real Estate Fund (Exercise price $66) | Morgan Stanley | 6/17/2016 | $ 2,753 | $ (900) | $ 1,853 |
See Accompanying Notes to the Consolidated Financial Statements.
19
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Futures Contracts Long
Exchange Traded
Currency | Number of Contracts | Expiration Date | Notional Amount at Cost | Notional Amount at Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||
CAC40 Futures Contracts | EUR | 15 | 5/20/2016 | $ | 754,620 | $ | 751,525 | $ | (3,095 | ) | ||||||||||||
CBOT 10 Year U.S. Treasury Note Futures Contracts | USD | 17 | 6/21/2016 | 2,204,792 | 2,211,062 | 6,270 | ||||||||||||||||
CBOT Corn Futures Contracts | USD | 9 | 7/14/2016 | 175,304 | 176,287 | 983 | ||||||||||||||||
CBOT Soybean Futures Contracts | USD | 11 | 7/14/2016 | 529,913 | 566,362 | 36,449 | ||||||||||||||||
CBOT Soybean Meal Futures Contracts | USD | 11 | 7/14/2016 | 355,440 | 368,280 | 12,840 | ||||||||||||||||
CBOT Soybean Oil Futures Contracts | USD | 13 | 7/14/2016 | 273,606 | 258,492 | (15,114 | ) | |||||||||||||||
CME Australian Dollar Futures Contracts | USD | 3 | 6/13/2016 | 226,252 | 227,610 | 1,358 | ||||||||||||||||
CME Canadian Dollar Futures Contracts | USD | 2 | 6/14/2016 | 158,095 | 159,480 | 1,385 | ||||||||||||||||
CME Euro FX Currency Futures Contracts | USD | 2 | 6/13/2016 | 283,980 | 286,625 | 2,645 | ||||||||||||||||
CME Japanese Yen Futures Contracts | USD | 3 | 6/13/2016 | 332,839 | 351,675 | 18,836 | ||||||||||||||||
CME NASDAQ 100 E-Mini Futures Contracts | USD | 3 | 6/17/2016 | 264,116 | 259,890 | (4,226 | ) | |||||||||||||||
CME New Zealand Futures Contract | USD | 1 | 6/13/2016 | 69,272 | 69,640 | 368 | ||||||||||||||||
CMX Copper Commodity Futures Contracts | USD | 2 | 7/27/2016 | 112,221 | 114,175 | 1,954 | ||||||||||||||||
CMX Gold 100 OZ Futures Contracts | USD | 4 | 6/28/2016 | 488,549 | 516,200 | 27,651 | ||||||||||||||||
CMX Silver Futures Contracts | USD | 4 | 7/27/2016 | 346,299 | 356,380 | 10,081 | ||||||||||||||||
E-Mini S&P 500 Futures Contracts | USD | 4 | 6/17/2016 | 411,670 | 411,820 | 150 | ||||||||||||||||
EOE Amsterdam Exchanges Index Futures Contracts | EUR | 9 | 5/20/2016 | 907,233 | 899,975 | (7,258 | ) | |||||||||||||||
Eurex 10 Year Euro BUND Futures Contracts | EUR | 14 | 6/8/2016 | 2,596,728 | 2,595,050 | (1,678 | ) | |||||||||||||||
EURO STOXX 50 Futures Contracts | EUR | 21 | 6/17/2016 | 714,069 | 715,851 | 1,782 | ||||||||||||||||
FTSE/MIB Index Futures Contracts | EUR | 5 | 6/17/2016 | 514,106 | 522,400 | 8,294 | ||||||||||||||||
HKG Hang Seng Index Futures Contracts | HKD | 2 | 5/30/2016 | 272,337 | 268,845 | (3,492 | ) | |||||||||||||||
LIFFE FTSE 100 Index Futures Contracts | GBP | 3 | 6/17/2016 | 273,414 | 272,300 | (1,114 | ) | |||||||||||||||
LIFFE Long Gilt Futures Contracts | GBP | 11 | 6/28/2016 | 1,952,952 | 1,922,289 | (30,663 | ) | |||||||||||||||
MFM IBEX 35 Index Futures Contracts | EUR | 4 | 5/20/2016 | 402,594 | 412,447 | 9,853 | ||||||||||||||||
NYM Gasoline RBOB Futures Contracts | USD | 2 | 5/31/2016 | 130,675 | 134,770 | 4,095 | ||||||||||||||||
OML Stockholm OMXS30 Index Futures Contracts | SEK | 29 | 5/20/2016 | 494,220 | 487,971 | (6,249 | ) | |||||||||||||||
Russell 2000 Mini Futures Contracts | USD | 3 | 6/17/2016 | 338,626 | 338,610 | (16 | ) | |||||||||||||||
|
| |||||||||||||||||||||
$ | 72,089 | |||||||||||||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
20
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Futures Contracts Short
Exchange Traded
Currency | Number of Contracts | Expiration Date | Notional Amount at Cost | Notional Amount at Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||
CBOT Wheat Futures Contracts | USD | 15 | 7/14/2016 | $ | 353,960 | $ | 366,375 | $ | (12,415 | ) | ||||||||||||
CME British Pound Futures Contract | USD | 1 | 6/13/2016 | 88,441 | 91,331 | (2,890 | ) | |||||||||||||||
DAX Index Futures Contract | EUR | 1 | 6/17/2016 | 281,453 | 288,710 | (7,257 | ) | |||||||||||||||
FTSE/JSE Top 40 Index Futures Contracts | ZAR | 15 | 6/15/2016 | 486,065 | 494,333 | (8,268 | ) | |||||||||||||||
ICE Brent Crude Oil Futures Contracts | USD | 2 | 5/31/2016 | 89,777 | 94,740 | (4,963 | ) | |||||||||||||||
ICE Coffee ‘C’ Futures Contracts | USD | 7 | 7/19/2016 | 320,874 | 318,937 | 1,937 | ||||||||||||||||
ICE Low Sulphur Gas Oil Futures Contracts | USD | 3 | 6/10/2016 | 119,795 | 124,200 | (4,405 | ) | |||||||||||||||
ICE MSCI Europe Net Total Return Index Futures Contracts | EUR | 430 | 6/17/2016 | 8,879,137 | 8,916,848 | (37,711 | ) | |||||||||||||||
MSE 10 Year Canadian Bond Futures Contracts | CAD | 11 | 6/21/2016 | 1,229,234 | 1,220,021 | 9,213 | ||||||||||||||||
Nikkei 225 Futures Contracts | JPY | 2 | 6/9/2016 | 324,992 | 310,150 | 14,842 | ||||||||||||||||
NYM Natural Gas Futures Contracts | USD | 10 | 5/26/2016 | 219,477 | 217,800 | 1,677 | ||||||||||||||||
NYM NY Harbor ULSD Futures Contracts | USD | 2 | 5/31/2016 | 104,105 | 116,424 | (12,319 | ) | |||||||||||||||
SFE 10 Year Commonwealth Treasury Bond Futures Contracts | AUD | 11 | 6/15/2016 | 1,081,639 | 1,092,686 | (11,047 | ) | |||||||||||||||
SGX Nifty 50 Index Futures Contracts | USD | 32 | 5/26/2016 | 507,648 | 505,120 | 2,528 | ||||||||||||||||
WTI Crude Oil Futures Contracts | USD | 3 | 5/20/2016 | 130,566 | 137,760 | (7,194 | ) | |||||||||||||||
|
| |||||||||||||||||||||
$ | (78,272 | ) | ||||||||||||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
21
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Cash collateral in the amount of $2,033,809 was pledged to cover margin requirements for open futures contracts as of April 30, 2016.
Long Total Return Swap Contracts
Over the Counter
Counterparty | Underlying Reference Instrument | Maturity Date | Currency | Reference Quantity | Market Value | |||||||||
Morgan Stanley | London Stock Exchange Group plc | 1/17/2050 | GBP | 2,318 | $ | (4,072 | ) | |||||||
Morgan Stanley | SABMiller plc | 1/17/2050 | GBP | 12,457 | 42,827 | |||||||||
Morgan Stanley | Starwood Hotels & Resorts Worldwide, Inc. | 1/17/2050 | USD | 4,917 | (1,121 | ) | ||||||||
Morgan Stanley | Vodafone Group plc | 1/17/2050 | GBP | 8,107 | (319 | ) | ||||||||
|
| |||||||||||||
$ | 37,315 | |||||||||||||
|
|
Short Total Return Swap Contracts
Over the Counter
Counterparty | Underlying Reference Instrument | Maturity Date | Currency | Reference Quantity | Market Value | |||||||||
Morgan Stanley | Aetna, Inc. | 1/17/2050 | USD | 861 | $ | (5,982 | ) | |||||||
Morgan Stanley | Alibaba Group Holding Ltd. | 1/17/2050 | USD | 1,195 | (6,902 | ) | ||||||||
Morgan Stanley | Anthem, Inc. | 1/17/2050 | USD | 372 | 2,469 | |||||||||
Morgan Stanley | Charter Communications, Inc. | 1/17/2050 | USD | 2,100 | (79,618 | ) | ||||||||
Morgan Stanley | Consumer Staples Select Sector SPDR Fund | 1/17/2050 | USD | 907 | (1,373 | ) | ||||||||
Morgan Stanley | Interval Leisure Group, Inc. | 1/17/2050 | USD | 2,109 | (1,418 | ) | ||||||||
Morgan Stanley | Marriott International, Inc. | 1/17/2050 | USD | 3,933 | (6,563 | ) | ||||||||
Morgan Stanley | Shire plc | 1/17/2050 | USD | 1,934 | (34,706 | ) | ||||||||
Morgan Stanley | Sky plc | 1/17/2050 | GBP | 1,744 | 2,552 | |||||||||
Morgan Stanley | STOXX Europe 600 Index | 1/17/2050 | EUR | 87,965 | 8,946 | |||||||||
Morgan Stanley | VMware, Inc. | 1/17/2050 | USD | 1,600 | (1,701 | ) | ||||||||
|
| |||||||||||||
$ | (124,296 | ) | ||||||||||||
|
|
Total Return Swaps on Equity Index Futures
Over the Counter
Counterparty | Underlying Reference Instrument | Maturity Date | Currency | Notional Amount at Value | Unrealized Appreciation/ (Depreciation) | |||||||||
Morgan Stanley | BMF Ibovespa Futures Contracts | 6/15/2016 | BRL | (407,528 | ) | $ | (22,210 | ) | ||||||
Morgan Stanley | KFE KOSPI 200 Futures Contracts | 6/9/2016 | KRW | (530,160 | ) | (8,171 | ) | |||||||
|
| |||||||||||||
$ | (30,381 | ) | ||||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
22
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Cash collateral in the amount of $1,980,000 was pledged for total return swaps as of April 30, 2016.
Contracts for Differences*
Over the Counter
Counterparty | Description | Termination Date | Value | |||||
Bank of America Corp. | The Fund receives the total return on a portfolio of long and short positions and pays a specified LIBOR or Federal Funds floating rate, which is denominated in various foreign currencies based on the local currencies of the positions within the swap. | 8/21/2017 | $ | (4,165 | ) | |||
Goldman Sachs International | The Fund receives the total return on a portfolio of long and short positions and pays a specified LIBOR or Federal Funds floating rate, which is denominated in various foreign currencies based on the local currencies of the positions within the swap. | 5/5/2016 – 5/1/2026 | (407,924 | ) | ||||
Morgan Stanley | The Fund receives the total return on a portfolio of long and short positions and pays a specified LIBOR or Federal Funds floating rate, which is denominated in various foreign currencies based on the local currencies of the positions within the swap. | 7/3/2017 – 4/26/2018 | (265,383 | ) | ||||
|
| |||||||
$ | (677,472 | ) | ||||||
|
|
* | See accompanying Contracts for Differences schedules on the following pages for further details |
See Accompanying Notes to the Consolidated Financial Statements.
23
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Switzerland | ||||||||||
Bank of America Corp. | Glencore plc | 28,014 | $ | 1,994 | ||||||
(Long Positions) | Wizz Air Holdings plc | 1,882 | 1,289 | |||||||
|
| |||||||||
3,283 | ||||||||||
|
| |||||||||
United Kingdom | ||||||||||
Barratt Developments plc | 6,114 | 2,785 | ||||||||
British American Tobacco plc | 3,329 | 514 | ||||||||
GlaxoSmithKline plc | �� | 5,367 | (3,975 | ) | ||||||
Hill & Smith Holdings plc | 9,068 | (528 | ) | |||||||
HSBC Holdings plc | 26,158 | (89 | ) | |||||||
Imperial Brands plc | 2,551 | (2,595 | ) | |||||||
ITV plc | 21,232 | 666 | ||||||||
JD Sports Fashion plc | 4,544 | 2,429 | ||||||||
Land Securities Group plc | 5,309 | 2,708 | ||||||||
Persimmon plc | 2,092 | 3,607 | ||||||||
Prudential plc | 4,808 | (128 | ) | |||||||
Reckitt Benckiser Group plc | 2,482 | (7,169 | ) | |||||||
Rio Tinto plc | 2,934 | 1,352 | ||||||||
SABMiller plc | 999 | (1,243 | ) | |||||||
Taylor Wimpey plc | 22,451 | 4,052 | ||||||||
Victoria plc | 3,375 | (4,542 | ) | |||||||
|
| |||||||||
(2,156 | ) | |||||||||
|
| |||||||||
Total Long Positions of Contracts for Differences | 1,127 | |||||||||
|
| |||||||||
Net other receivables/(payables) | (5,292 | ) | ||||||||
|
| |||||||||
Total Contracts for Differences, at value | $ | (4,165 | ) | |||||||
|
| |||||||||
Australia | ||||||||||
Goldman Sachs International | Brambles Ltd. | 8,602 | (182 | ) | ||||||
(Long Positions) | Challenger Ltd. | 5,140 | (209 | ) | ||||||
CIMIC Group Ltd. | 3,297 | 1,280 | ||||||||
Coca-Cola Amatil Ltd. | 13,458 | 495 | ||||||||
Cochlear Ltd. | 1,020 | 1,859 | ||||||||
Domino’s Pizza Enterprises Ltd. | 1,889 | (232 | ) | |||||||
REA Group Ltd. | 2,106 | (622 | ) | |||||||
Woolworths Ltd. | 635 | 361 | ||||||||
|
| |||||||||
2,750 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
24
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
China | ||||||||||
Goldman Sachs International | AAC Technologies Holdings, Inc. | 10,000 | $ | 245 | ||||||
(Long Positions — continued) | Bank of Communications Co. Ltd. | 100,000 | (1,858 | ) | ||||||
Belle International Holdings Ltd. | 132,000 | (160 | ) | |||||||
Byd Co. Ltd. | 16,000 | 1,162 | ||||||||
China CITIC Bank Corp. Ltd. | 15,000 | (107 | ) | |||||||
China Communications Construction Co. Ltd. | 60,000 | 471 | ||||||||
China Petroleum & Chemical Corp. | 114,000 | (497 | ) | |||||||
China Southern Airlines Co. Ltd. | 58,000 | (46 | ) | |||||||
China Telecom Corp. Ltd. | 76,000 | 198 | ||||||||
Dongfeng Motor Group Co. Ltd. | 62,000 | (2,584 | ) | |||||||
Geely Automobile Holdings Ltd. | 160,000 | (2,972 | ) | |||||||
Great Wall Motor Co. Ltd. | 88,500 | (3,247 | ) | |||||||
Huaneng Power International, Inc. | 96,000 | (3,432 | ) | |||||||
PICC Property & Casualty Co. Ltd. | 38,000 | (2,105 | ) | |||||||
Sunny Optical Technology Group Co. Ltd. | 24,000 | (1,162 | ) | |||||||
Tencent Holdings Ltd. | 3,600 | (770 | ) | |||||||
Want Want China Holdings Ltd. | 94,000 | (3,399 | ) | |||||||
Yangzijiang Shipbuilding Holdings Ltd. | 97,300 | (657 | ) | |||||||
Zhuzhou CRRC Times Electric Co. Ltd. | 6,500 | (893 | ) | |||||||
|
| |||||||||
(21,813 | ) | |||||||||
|
| |||||||||
Denmark | ||||||||||
Danske Bank A/S | 430 | 300 | ||||||||
Vestas Wind Systems A/S | 1,227 | 4,934 | ||||||||
|
| |||||||||
5,234 | ||||||||||
|
| |||||||||
Finland | ||||||||||
Kone OYJ | 1,532 | 12 | ||||||||
|
| |||||||||
France | ||||||||||
Natixis SA | 4,229 | (137 | ) | |||||||
Peugeot SA | 5,530 | (50 | ) | |||||||
Plastic Omnium SA | 2,590 | (343 | ) | |||||||
Safran SA | 1,313 | (4,530 | ) | |||||||
Sanofi | 972 | (5,569 | ) | |||||||
Schneider Electric SE | 1,481 | (3,193 | ) | |||||||
Societe Generale SA | 2,325 | (2,352 | ) | |||||||
Technip SA | 1,319 | (1,464 | ) | |||||||
Thales SA | 1,092 | (1,924 | ) | |||||||
Valeo SA | 626 | (600 | ) | |||||||
Vinci SA | 1,073 | (704 | ) | |||||||
|
| |||||||||
(20,866 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
25
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Germany | ||||||||||
Goldman Sachs International | adidas AG | 755 | $ | (1,141 | ) | |||||
(Long Positions — continued) | Bayer AG | 653 | (3,519 | ) | ||||||
Deutsche Post AG | 3,351 | (1,906 | ) | |||||||
E.ON SE | 2,694 | (928 | ) | |||||||
HOCHTIEF AG | 677 | (851 | ) | |||||||
Krones AG | 467 | (2,122 | ) | |||||||
Software AG | 506 | 123 | ||||||||
Stroeer SE & Co. KGaA | 1,188 | (2,680 | ) | |||||||
|
| |||||||||
(13,024 | ) | |||||||||
|
| |||||||||
Hong Kong | ||||||||||
China Everbright Ltd. | 22,000 | (1,212 | ) | |||||||
CLP Holdings Ltd. | 4,000 | (200 | ) | |||||||
HKT Trust & HKT Ltd. | 55,000 | 993 | ||||||||
Kunlun Energy Co. Ltd. | 8,000 | (244 | ) | |||||||
Nine Dragons Paper Holdings Ltd. | 90,000 | (2,228 | ) | |||||||
PCCW Ltd. | 97,000 | (619 | ) | |||||||
Shimao Property Holdings Ltd. | 35,000 | (245 | ) | |||||||
|
| |||||||||
(3,755 | ) | |||||||||
|
| |||||||||
Ireland | ||||||||||
James Hardie Industries plc | 317 | (49 | ) | |||||||
Jazz Pharmaceuticals plc | 534 | (2,116 | ) | |||||||
Paddy Power Betfair plc | 184 | 409 | ||||||||
Shire plc | 1,428 | 2,040 | ||||||||
|
| |||||||||
284 | ||||||||||
|
| |||||||||
Italy | ||||||||||
A2A SpA | 54,958 | 267 | ||||||||
Brembo SpA | 1,763 | (10 | ) | |||||||
Mediaset SpA | 2,871 | (95 | ) | |||||||
Prysmian SpA | 4,067 | 567 | ||||||||
|
| |||||||||
729 | ||||||||||
|
| |||||||||
Japan | ||||||||||
Amada Holdings Co. Ltd. | 2,400 | (1,826 | ) | |||||||
Bandai Namco Holdings, Inc. | 400 | (611 | ) | |||||||
Canon, Inc. | 2,600 | (9,960 | ) | |||||||
Central Japan Railway Co. | 400 | (6,915 | ) | |||||||
Chubu Electric Power Co., Inc. | 1,200 | (909 | ) | |||||||
Dai Nippon Printing Co. Ltd. | 8,000 | (5,362 | ) | |||||||
FamilyMart Co. Ltd. | 1,300 | (3,601 | ) | |||||||
Fuji Media Holdings, Inc. | 1,200 | (752 | ) | |||||||
Fujitsu Ltd. | 21,000 | (9,090 | ) | |||||||
Hitachi Construction Machinery Co. Ltd. | 5,200 | (11,384 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
26
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Japan | ||||||||||
Goldman Sachs International | Hitachi Ltd. | 17,000 | $ | (8,354 | ) | |||||
(Long Positions — continued) | Hoya Corp. | 1,900 | (6,245 | ) | ||||||
Isetan Mitsukoshi Holdings Ltd. | 2,900 | (3,044 | ) | |||||||
Kirin Holdings Co. Ltd. | 5,700 | (5,694 | ) | |||||||
Komatsu Ltd. | 5,100 | (7,229 | ) | |||||||
Konica Minolta, Inc. | 8,900 | (8,177 | ) | |||||||
Lawson, Inc. | 900 | (2,582 | ) | |||||||
Lion Corp. | 6,000 | (2,224 | ) | |||||||
Mazda Motor Corp. | 5,500 | (11,447 | ) | |||||||
Mitsubishi Chemical Holdings Corp. | 8,800 | (2,674 | ) | |||||||
Mitsubishi Electric Corp. | 8,000 | (6,962 | ) | |||||||
Mitsubishi Motors Corp. | 10,400 | (4,066 | ) | |||||||
Mitsubishi Tanabe Pharma Corp. | 4,500 | (3,187 | ) | |||||||
Mitsui & Co. Ltd. | 1,800 | (1,369 | ) | |||||||
Nikon Corp. | 5,400 | (5,835 | ) | |||||||
Nippon Express Co. Ltd. | 9,000 | (3,626 | ) | |||||||
NTT Data Corp. | 1,600 | (3,930 | ) | |||||||
Panasonic Corp. | 1,700 | (1,633 | ) | |||||||
Pola Orbis Holdings, Inc. | 1,000 | (4,528 | ) | |||||||
Ricoh Co. Ltd. | 7,900 | (7,550 | ) | |||||||
Sankyo Co. Ltd. | 200 | (409 | ) | |||||||
Sega Sammy Holdings, Inc. | 6,700 | (6,160 | ) | |||||||
Shiseido Co. Ltd. | 400 | (667 | ) | |||||||
Start Today Co. Ltd. | 1,000 | (1,599 | ) | |||||||
Sumitomo Chemical Co. Ltd. | 17,000 | (7,109 | ) | |||||||
Sumitomo Corp. | 7,600 | (5,626 | ) | |||||||
Suzuken Co. Ltd. | 2,300 | (5,209 | ) | |||||||
Toppan Printing Co. Ltd. | 8,000 | (4,636 | ) | |||||||
Toyo Suisan Kaisha Ltd. | 900 | (1,425 | ) | |||||||
Toyota Tsusho Corp. | 600 | (794 | ) | |||||||
|
| |||||||||
(184,400 | ) | |||||||||
|
| |||||||||
Netherlands | ||||||||||
Koninklijke Ahold NV | 3,662 | 365 | ||||||||
Randstad Holding NV | 1,559 | (61 | ) | |||||||
|
| |||||||||
304 | ||||||||||
|
| |||||||||
Norway | ||||||||||
Norsk Hydro ASA | 19,154 | 1,038 | ||||||||
Telenor ASA | 1,478 | 242 | ||||||||
|
| |||||||||
1,280 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
27
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Singapore | ||||||||||
Goldman Sachs International | ComfortDelGro Corp. Ltd. | 38,200 | $ | 353 | ||||||
(Long Positions — continued) | Jardine Cycle & Carriage Ltd. | 2,600 | (7,957 | ) | ||||||
Singapore Technologies Engineering Ltd. | 32,000 | 1,196 | ||||||||
Wilmar International Ltd. | 31,100 | 2,637 | ||||||||
|
| |||||||||
(3,771 | ) | |||||||||
|
| |||||||||
South Korea | ||||||||||
Amorepacific Corp. | 250 | (1,082 | ) | |||||||
Hanmi Pharm Co. Ltd. | 51 | (692 | ) | |||||||
Hanon Systems | 2,272 | 284 | ||||||||
Hanssem Co. Ltd. | 71 | 239 | ||||||||
Hanwha Chemical Corp. | 3,772 | (1,492 | ) | |||||||
Hyosung Corp. | 738 | 229 | ||||||||
Hyundai Development Co-Engineering & Construction | 1,801 | 6,957 | ||||||||
Hyundai Engineering & Construction Co. Ltd. | 2,465 | 2,633 | ||||||||
Hyundai Mobis Co. Ltd. | 162 | 1,298 | ||||||||
LG Electronics, Inc. | 1,418 | 285 | ||||||||
LG Household & Health Care Ltd. | 106 | (642 | ) | |||||||
LG Uplus Corp. | 6,052 | 867 | ||||||||
Lotte Chemical Corp. | 314 | (4,130 | ) | |||||||
NCSoft Corp. | 384 | 1,038 | ||||||||
SK Holdings Co. Ltd. | 230 | (890 | ) | |||||||
SK Innovation Co. Ltd. | 635 | (1,335 | ) | |||||||
S-Oil Corp. | 1,095 | (1,073 | ) | |||||||
|
| |||||||||
2,494 | ||||||||||
|
| |||||||||
Sweden | ||||||||||
Atlas Copco AB | 3,491 | 693 | ||||||||
Axfood AB | 1,043 | (194 | ) | |||||||
BillerudKorsnas AB | 5,210 | (1,693 | ) | |||||||
Electrolux AB | 3,564 | 9,086 | ||||||||
Skanska AB | 4,218 | (999 | ) | |||||||
Swedish Match AB | 2,232 | (896 | ) | |||||||
Telefonaktiebolaget LM Ericsson | 8,447 | (1,560 | ) | |||||||
|
| |||||||||
4,437 | ||||||||||
|
| |||||||||
Switzerland | ||||||||||
Actelion Ltd. | 537 | (839 | ) | |||||||
Adecco SA | 745 | (291 | ) | |||||||
Georg Fischer AG | 54 | (592 | ) | |||||||
Kuehne + Nagel International AG | 571 | (804 | ) | |||||||
Schindler Holding AG | 440 | (1,799 | ) | |||||||
Sonova Holding AG | 104 | (51 | ) | |||||||
STMicroelectronics NV | 6,748 | (2,576 | ) | |||||||
Swiss Re AG | 687 | (2,103 | ) | |||||||
|
| |||||||||
(9,055 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
28
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Taiwan | ||||||||||
Goldman Sachs International | Advantech Co. Ltd. | 9,000 | $ | (270 | ) | |||||
(Long Positions — continued) | Cheng Shin Rubber Industry Co. Ltd. | 33,000 | (1,698 | ) | ||||||
Compal Electronics, Inc. | 72,000 | (240 | ) | |||||||
Eclat Textile Co. Ltd. | 6,114 | (2,406 | ) | |||||||
Formosa Chemicals & Fibre Corp. | 30,000 | (1,626 | ) | |||||||
Formosa Petrochemical Corp. | 31,000 | (699 | ) | |||||||
Pou Chen Corp. | 67,000 | (574 | ) | |||||||
President Chain Store Corp. | 10,000 | (1,155 | ) | |||||||
Uni-President Enterprises Corp. | 47,160 | (1,100 | ) | |||||||
|
| |||||||||
(9,768 | ) | |||||||||
|
| |||||||||
United Kingdom | ||||||||||
ASOS plc | 1,550 | (666 | ) | |||||||
Barratt Developments plc | 9,557 | (913 | ) | |||||||
Bellway plc | 2,008 | (40 | ) | |||||||
Berkeley Group Holdings plc | 1,693 | (2,943 | ) | |||||||
Burberry Group plc | 3,575 | (959 | ) | |||||||
Compass Group plc | 4,339 | (1,535 | ) | |||||||
Dialog Semiconductor plc | 1,332 | (1,369 | ) | |||||||
Howden Joinery Group plc | 11,439 | 1,632 | ||||||||
Inchcape plc | 7,856 | (1,337 | ) | |||||||
John Wood Group plc | 4,510 | 1,460 | ||||||||
Marks & Spencer Group plc | 10,840 | (2,102 | ) | |||||||
Meggitt plc | 13,543 | 466 | ||||||||
Persimmon plc | 2,774 | (380 | ) | |||||||
Rolls-Royce Holdings plc | 585,792 | 654 | ||||||||
Sage Group plc (The) | 9,029 | (882 | ) | |||||||
Smith & Nephew plc | 478 | 163 | ||||||||
Taylor Wimpey plc | 30,814 | (586 | ) | |||||||
|
| |||||||||
(9,337 | ) | |||||||||
|
| |||||||||
United States | ||||||||||
AmerisourceBergen Corp. | 566 | (3,498 | ) | |||||||
Apple, Inc. | 774 | (8,213 | ) | |||||||
Best Buy Co., Inc. | 281 | (301 | ) | |||||||
Brocade Communications Systems, Inc. | 8,261 | (1,239 | ) | |||||||
Bruker Corp. | 863 | (181 | ) | |||||||
Cadence Design Systems, Inc. | 3,442 | (1,170 | ) | |||||||
Cardinal Health, Inc. | 981 | (7,966 | ) | |||||||
Carnival plc | 1,381 | (1,379 | ) | |||||||
Centene Corp. | 471 | (2,237 | ) | |||||||
CenturyLink, Inc. | 2,919 | (1,372 | ) | |||||||
Ciena Corp. | 3,595 | (1,869 | ) | |||||||
Citrix Systems, Inc. | 973 | (1,314 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
29
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Goldman Sachs International | Computer Sciences Corp. | 2,564 | $ | (385 | ) | |||||
(Long Positions — continued) | Deluxe Corp. | 671 | 382 | |||||||
Discovery Communications, Inc. | 5,317 | (4,590 | ) | |||||||
DISH Network Corp. | 196 | (259 | ) | |||||||
Eastman Chemical Co. | 318 | (162 | ) | |||||||
F5 Networks, Inc. | 486 | (301 | ) | |||||||
Herbalife Ltd. | 1,417 | (2,820 | ) | |||||||
HP, Inc. | 6,343 | (2,918 | ) | |||||||
International Paper Co. | 491 | (49 | ) | |||||||
Las Vegas Sands Corp. | 130 | (90 | ) | |||||||
Leidos Holdings, Inc. | 322 | (718 | ) | |||||||
LifePoint Health, Inc. | 964 | (5,148 | ) | |||||||
Mentor Graphics Corp. | 593 | (468 | ) | |||||||
Mettler-Toledo International, Inc. | 125 | (464 | ) | |||||||
Micron Technology, Inc. | 7,236 | (5,499 | ) | |||||||
Molina Healthcare, Inc. | 1,355 | (21,626 | ) | |||||||
Mosaic Co. (The) | 3,131 | (1,753 | ) | |||||||
NetApp, Inc. | 3,509 | (3,123 | ) | |||||||
ON Semiconductor Corp. | 5,976 | (3,108 | ) | |||||||
Popular, Inc. | 3,246 | (1,429 | ) | |||||||
Ralph Lauren Corp. | 349 | (615 | ) | |||||||
Robert Half International, Inc. | 1,915 | (12,045 | ) | |||||||
Seagate Technology plc | 2,564 | (13,410 | ) | |||||||
Skyworks Solutions, Inc. | 1,216 | (5,934 | ) | |||||||
Starbucks Corp. | 929 | (1,384 | ) | |||||||
Synaptics, Inc. | 198 | (2,820 | ) | |||||||
Synopsys, Inc. | 1,830 | (1,775 | ) | |||||||
Teradata Corp. | 3,218 | (2,381 | ) | |||||||
Tesoro Corp. | 227 | (1,469 | ) | |||||||
Ulta Salon Cosmetics & Fragrance, Inc. | 324 | 49 | ||||||||
Valero Energy Corp. | 1,291 | (3,795 | ) | |||||||
Varian Medical Systems, Inc. | 126 | (388 | ) | |||||||
VMware, Inc. | 1,523 | (1,188 | ) | |||||||
Wal-Mart Stores, Inc. | 1,099 | (2,671 | ) | |||||||
WellCare Health Plans, Inc. | 726 | (5,220 | ) | |||||||
WESCO International, Inc. | 528 | 465 | ||||||||
Western Digital Corp. | 1,736 | (6,380 | ) | |||||||
Western Refining, Inc. | 2,679 | (3,604 | ) | |||||||
Westlake Chemical Corp. | 1,564 | (2,127 | ) | |||||||
Whole Foods Market, Inc. | 2,042 | (1,511 | ) | |||||||
Xerox Corp. | 4,483 | (941 | ) | |||||||
|
| |||||||||
(154,411 | ) | |||||||||
|
| |||||||||
Total Long Positions of Contracts for Differences | (412,676 | ) | ||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
30
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Australia | ||||||||||
Goldman Sachs International | Alumina Ltd. | (58,105 | ) | $ | 216 | |||||
(Short Positions) | Crown Resorts Ltd. | (9,258 | ) | (682 | ) | |||||
Harvey Norman Holdings Ltd. | (25,268 | ) | (4,302 | ) | ||||||
Incitec Pivot Ltd. | (22,032 | ) | (1,945 | ) | ||||||
Newcrest Mining Ltd. | (1,417 | ) | (1,053 | ) | ||||||
Orica Ltd. | (1,790 | ) | (158 | ) | ||||||
Origin Energy Ltd. | (22,797 | ) | (1,816 | ) | ||||||
Ramsay Health Care Ltd. | (1,104 | ) | (835 | ) | ||||||
Santos Ltd. | (16,154 | ) | (2,432 | ) | ||||||
SEEK Ltd. | (6,744 | ) | (1,873 | ) | ||||||
Sonic Healthcare Ltd. | (5,523 | ) | 380 | |||||||
Sydney Airport | (11,490 | ) | (1,321 | ) | ||||||
Tatts Group Ltd. | (23,125 | ) | 215 | |||||||
|
| |||||||||
(15,606 | ) | |||||||||
|
| |||||||||
China | ||||||||||
21Vianet Group, Inc. | (3,954 | ) | 929 | |||||||
Anhui Conch Cement Co. Ltd. | (28,500 | ) | (1,065 | ) | ||||||
China Mengniu Dairy Co. Ltd. | (52,000 | ) | 1,221 | |||||||
China Shenhua Energy Co. Ltd. | (47,000 | ) | 113 | |||||||
Fosun International Ltd. | (50,000 | ) | 1,948 | |||||||
GOME Electrical Appliances Holding Ltd. | (22,000 | ) | 60 | |||||||
Lenovo Group Ltd. | (100,000 | ) | 3,139 | |||||||
PetroChina Co. Ltd. | (34,000 | ) | 329 | |||||||
Semiconductor Manufacturing International Corp. | (156,000 | ) | 248 | |||||||
Tingyi Cayman Islands Holding Corp. | (66,000 | ) | 373 | |||||||
Tsingtao Brewery Co. Ltd. | (14,000 | ) | 855 | |||||||
|
| |||||||||
8,150 | ||||||||||
|
| |||||||||
Denmark | ||||||||||
AP Moeller — Maersk A/S | (5 | ) | 176 | |||||||
H Lundbeck A/S | (2,358 | ) | 2,098 | |||||||
Tryg A/S | (2,602 | ) | 910 | |||||||
|
| |||||||||
3,184 | ||||||||||
|
| |||||||||
Finland | ||||||||||
Fortum OYJ | (5,680 | ) | (630 | ) | ||||||
Wartsila OYJ Abp | (1,615 | ) | 642 | |||||||
|
| |||||||||
12 | ||||||||||
|
| |||||||||
France | ||||||||||
Accor SA | (2,162 | ) | 555 | |||||||
Bouygues SA | (1,794 | ) | 184 | |||||||
Carrefour SA | (2,713 | ) | 3,114 |
See Accompanying Notes to the Consolidated Financial Statements.
31
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
France | ||||||||||
Goldman Sachs International | Edenred | (4,062 | ) | $ | 2,218 | |||||
(Short Positions — continued) | Ingenico Group SA | (715 | ) | 2,734 | ||||||
Kering | (454 | ) | (139 | ) | ||||||
Orpea | (987 | ) | 871 | |||||||
Vivendi SA | (3,989 | ) | 2,470 | |||||||
Zodiac Aerospace | (4,343 | ) | 3,722 | |||||||
|
| |||||||||
15,729 | ||||||||||
|
| |||||||||
Germany | ||||||||||
Axel Springer SE | (872 | ) | 429 | |||||||
Bayerische Motoren Werke AG | (988 | ) | 2,901 | |||||||
Daimler AG | (1,133 | ) | 2,487 | |||||||
Deutsche Lufthansa AG | (5,505 | ) | 116 | |||||||
Fielmann AG | (413 | ) | 122 | |||||||
Fraport AG Frankfurt Airport Services Worldwide | (1,293 | ) | (76 | ) | ||||||
Porsche Automobil Holding SE | (91 | ) | 178 | |||||||
SAP SE | (992 | ) | 2,942 | |||||||
Volkswagen AG | (612 | ) | 1,456 | |||||||
|
| |||||||||
10,555 | ||||||||||
|
| |||||||||
Hong Kong | ||||||||||
ASM Pacific Technology Ltd. | (4,900 | ) | (662 | ) | ||||||
Bank of East Asia Ltd. (The) | (186 | ) | 21 | |||||||
Brilliance China Automotive Holdings Ltd. | (78,000 | ) | 1,901 | |||||||
Cathay Pacific Airways Ltd. | (47,000 | ) | 1,107 | |||||||
China Agri-Industries Holdings Ltd. | (36,000 | ) | 475 | |||||||
China Merchants Holdings International Co. Ltd. | (28,000 | ) | 1,232 | |||||||
China Mobile Ltd. | (6,500 | ) | 2,132 | |||||||
China Resources Beer Holdings Company Ltd. | (34,000 | ) | 1,205 | |||||||
China Taiping Insurance Holdings Co. Ltd. | (7,000 | ) | 517 | |||||||
China Unicom Hong Kong Ltd. | (58,000 | ) | 1,576 | |||||||
CITIC Ltd. | (54,000 | ) | 1,588 | |||||||
COSCO Pacific Ltd. | (62,000 | ) | (470 | ) | ||||||
Haier Electronics Group Co. Ltd. | (40,000 | ) | 784 | |||||||
Hang Seng Bank Ltd. | (4,300 | ) | 867 | |||||||
Henderson Land Development Co. Ltd. | (8,000 | ) | 1,449 | |||||||
Hong Kong & China Gas Co. Ltd. | (42,000 | ) | 545 | |||||||
Li & Fung Ltd. | (132,000 | ) | 2,258 | |||||||
|
| |||||||||
16,525 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
32
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Ireland | ||||||||||
Goldman Sachs International | Endo International plc | (277 | ) | $ | 684 | |||||
|
| |||||||||
(Short Positions — continued) | Italy | |||||||||
Atlantia SpA | (2,813 | ) | 593 | |||||||
Finmeccanica SpA | (7,522 | ) | 2,312 | |||||||
Unione di Banche Italiane SpA | (13,927 | ) | 772 | |||||||
|
| |||||||||
3,677 | ||||||||||
|
| |||||||||
Japan | ||||||||||
Aozora Bank Ltd. | (18,000 | ) | 3,862 | |||||||
Asahi Intecc Co. Ltd. | (300 | ) | 864 | |||||||
Casio Computer Co. Ltd. | (4,200 | ) | 5,482 | |||||||
Cosmos Pharmaceutical Corp. | (400 | ) | 2,793 | |||||||
Dentsu, Inc. | (1,400 | ) | 7,362 | |||||||
Ezaki Glico Co. Ltd. | (1,500 | ) | (1,681 | ) | ||||||
Fast Retailing Co. Ltd. | (100 | ) | 2,907 | |||||||
Hamamatsu Photonics KK | (3,100 | ) | 5,899 | |||||||
Hirose Electric Co. Ltd. | (600 | ) | 7,745 | |||||||
Hiroshima Bank Ltd. (The) | (2,000 | ) | 734 | |||||||
Izumi Co. Ltd. | (1,700 | ) | 4,400 | |||||||
Japan Airport Terminal Co. Ltd. | (2,200 | ) | 5,520 | |||||||
Kansai Paint Co. Ltd. | (3,300 | ) | 3,599 | |||||||
Keihan Holdings Co. Ltd. | (12,000 | ) | 6,285 | |||||||
Kewpie Corp. | (3,300 | ) | (544 | ) | ||||||
Mabuchi Motor Co. Ltd. | (1,700 | ) | 4,773 | |||||||
Makita Corp. | (500 | ) | 1,468 | |||||||
Marui Group Co. Ltd. | (5,600 | ) | 4,307 | |||||||
McDonald’s Holdings Co. Japan Ltd. | (2,800 | ) | (233 | ) | ||||||
MEIJI Holdings Co. Ltd. | (600 | ) | 2,843 | |||||||
Minebea Co. Ltd. | (10,000 | ) | 8,312 | |||||||
MISUMI Group, Inc. | (5,600 | ) | 8,904 | |||||||
Nidec Corp. | (1,100 | ) | 328 | |||||||
Nippon Paint Holdings Co. Ltd. | (2,000 | ) | 2,995 | |||||||
Nippon Shinyaku Co. Ltd. | (1,000 | ) | 2,593 | |||||||
Nissan Chemical Industries Ltd. | (1,200 | ) | 1,693 | |||||||
Obic Co. Ltd. | (900 | ) | 2,518 | |||||||
Ono Pharmaceutical Co. Ltd. | (1,800 | ) | 5,497 | |||||||
Park24 Co. Ltd. | (2,100 | ) | 3,574 | |||||||
Santen Pharmaceutical Co. Ltd. | (5,000 | ) | 5,591 | |||||||
Shimadzu Corp. | (4,000 | ) | 6,209 | |||||||
Sohgo Security Services Co. Ltd. | (600 | ) | 1,639 | |||||||
Square Enix Holdings Co. Ltd. | (2,800 | ) | 5,451 | |||||||
Suruga Bank Ltd. | (4,100 | ) | 6,370 | |||||||
Taiyo Nippon Sanso Corp. | (8,500 | ) | 7,542 |
See Accompanying Notes to the Consolidated Financial Statements.
33
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Japan | ||||||||||
Goldman Sachs International | Yamada Denki Co. Ltd. | (16,300 | ) | $ | 662 | |||||
(Short Positions — continued) | Yamaha Motor Co. Ltd. | (5,000 | ) | 13,161 | ||||||
|
| |||||||||
151,424 | ||||||||||
|
| |||||||||
Jordan | ||||||||||
Hikma Pharmaceuticals plc | (2,944 | ) | 196 | |||||||
|
| |||||||||
Luxembourg | ||||||||||
Eurofins Scientific SE | (120 | ) | 308 | |||||||
|
| |||||||||
Netherlands | ||||||||||
Gemalto NV | (1,327 | ) | 3,190 | |||||||
SBM Offshore NV | (4,538 | ) | (712 | ) | ||||||
|
| |||||||||
2,478 | ||||||||||
|
| |||||||||
Norway | ||||||||||
Marine Harvest ASA | (5,130 | ) | 568 | |||||||
Schibsted ASA | (2,865 | ) | 815 | |||||||
|
| |||||||||
1,383 | ||||||||||
|
| |||||||||
Singapore | ||||||||||
Sembcorp Industries Ltd. | (38,700 | ) | (1,280 | ) | ||||||
Singapore Post Ltd. | (42,800 | ) | 1,862 | |||||||
Singapore Telecommunications Ltd. | (27,900 | ) | 1,721 | |||||||
|
| |||||||||
2,303 | ||||||||||
|
| |||||||||
South Korea | ||||||||||
E-MART, Inc. | (557 | ) | (2,640 | ) | ||||||
Hyundai Department Store Co. Ltd. | (249 | ) | (1,339 | ) | ||||||
Hyundai Motor Co. | (667 | ) | 2,858 | |||||||
Kangwon Land, Inc. | (2,055 | ) | 478 | |||||||
KCC Corp. | (71 | ) | 218 | |||||||
KEPCO Plant Service & Engineering Co. Ltd. | (913 | ) | (1,287 | ) | ||||||
Korea Aerospace Industries Ltd. | (1,321 | ) | (365 | ) | ||||||
LG Display Co. Ltd. | (3,706 | ) | 3,219 | |||||||
Lotte Shopping Co. Ltd. | (135 | ) | (1,516 | ) | ||||||
Orion Corp. | (39 | ) | 1,079 | |||||||
Samsung Electro-Mechanics Co. Ltd. | (1,719 | ) | 791 | |||||||
Samsung Heavy Industries Co. Ltd. | (1,895 | ) | 426 | |||||||
Samsung SDI Co. Ltd. | (921 | ) | 1,718 | |||||||
SK Hynix, Inc. | (3,399 | ) | 2,915 | |||||||
|
| |||||||||
6,555 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
34
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Sweden | ||||||||||
Goldman Sachs International | Assa Abloy AB | (2,681 | ) | $ | 302 | |||||
(Short Positions — continued) | Elekta AB | (2,263 | ) | 302 | ||||||
ICA Gruppen AB | (2,517 | ) | 1,240 | |||||||
Svenska Cellulosa AB SCA | (2,457 | ) | (1,269 | ) | ||||||
Tele2 AB | (9,509 | ) | 908 | |||||||
Volvo AB | (7,686 | ) | 2,563 | |||||||
|
| |||||||||
4,046 | ||||||||||
|
| |||||||||
Switzerland | ||||||||||
Chocoladefabriken Lindt & Spruengli AG | (1 | ) | 1,584 | |||||||
Dufry AG | (690 | ) | 610 | |||||||
Geberit AG | (200 | ) | (3,037 | ) | ||||||
LafargeHolcim Ltd. | (1,538 | ) | (910 | ) | ||||||
Sulzer AG | (700 | ) | 496 | |||||||
|
| |||||||||
(1,257 | ) | |||||||||
|
| |||||||||
Taiwan | ||||||||||
Advanced Semiconductor Engineering, Inc. | (74,000 | ) | 3,698 | |||||||
Asustek Computer, Inc. | (8,000 | ) | 955 | |||||||
Catcher Technology Co. Ltd. | (11,000 | ) | 2,398 | |||||||
China Development Financial Holding Corp. | (16,000 | ) | 138 | |||||||
Far EasTone Telecommunications Co. Ltd. | (33,000 | ) | 757 | |||||||
Innolux Corp. | (222,000 | ) | 2,161 | |||||||
MediaTek, Inc. | (12,000 | ) | 4,650 | |||||||
Pegatron Corp. | (32,000 | ) | 1,918 | |||||||
Quanta Computer, Inc. | (47,000 | ) | 5,074 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | (11,000 | ) | 2,669 | |||||||
|
| |||||||||
24,418 | ||||||||||
|
| |||||||||
United Kingdom | ||||||||||
Ashtead Group plc | (6,426 | ) | 1,389 | |||||||
AstraZeneca plc | (1,337 | ) | 1,367 | |||||||
Babcock International Group plc | (6,066 | ) | 467 | |||||||
BAE Systems plc | (11,135 | ) | (306 | ) | ||||||
BTG plc | (7,438 | ) | 1,483 | |||||||
Capita plc | (5,312 | ) | (1,860 | ) | ||||||
CNH Industrial NV | (12,986 | ) | (4,373 | ) | ||||||
Cobham plc | (25,677 | ) | 5,125 | |||||||
G4S plc | (27,408 | ) | 743 | |||||||
GlaxoSmithKline plc | (3,668 | ) | 1,382 | |||||||
J Sainsbury plc | (21,820 | ) | 238 | |||||||
Next plc | (1,010 | ) | 241 |
See Accompanying Notes to the Consolidated Financial Statements.
35
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
United Kingdom | ||||||||||
Goldman Sachs International | Playtech plc | (5,406 | ) | $ | 713 | |||||
(Short Positions — continued) | Sports Direct International plc | (14,245 | ) | 4,437 | ||||||
St James’s Place plc | (6,247 | ) | 2,009 | |||||||
Tesco plc | (34,109 | ) | 1,366 | |||||||
Travis Perkins plc | (3,080 | ) | 366 | |||||||
Whitbread plc | (1,414 | ) | 3,858 | |||||||
|
| |||||||||
18,645 | ||||||||||
|
| |||||||||
United States | ||||||||||
AECOM | (368 | ) | (144 | ) | ||||||
Allergan plc | (116 | ) | 392 | |||||||
Alliance Data Systems Corp. | (346 | ) | (564 | ) | ||||||
athenahealth, Inc. | (368 | ) | 3,305 | |||||||
Autodesk, Inc. | (1,211 | ) | 1,441 | |||||||
Ball Corp. | (1,066 | ) | 3,923 | |||||||
Becton Dickinson and Co. | (532 | ) | (910 | ) | ||||||
BorgWarner, Inc. | (841 | ) | 3,372 | |||||||
Cabela’s, Inc. | (949 | ) | 228 | |||||||
Cheniere Energy, Inc. | (2,088 | ) | (3,403 | ) | ||||||
Chipotle Mexican Grill, Inc. | (169 | ) | 4,217 | |||||||
Cypress Semiconductor Corp. | (7,511 | ) | (1,052 | ) | ||||||
Danaher Corp. | (881 | ) | (344 | ) | ||||||
Deere & Co. | (1,041 | ) | (1,343 | ) | ||||||
DexCom, Inc. | (364 | ) | 1,980 | |||||||
Dollar Tree, Inc. | (948 | ) | 2,218 | |||||||
Fidelity National Information Services, Inc. | (1,196 | ) | 239 | |||||||
FireEye, Inc. | (4,650 | ) | 3,162 | |||||||
First Solar, Inc. | (210 | ) | 1,134 | |||||||
FleetCor Technologies, Inc. | (524 | ) | (582 | ) | ||||||
FMC Corp. | (1,852 | ) | 19 | |||||||
Global Payments, Inc. | (844 | ) | 852 | |||||||
Guidewire Software, Inc. | (1,530 | ) | 581 | |||||||
Harley-Davidson, Inc. | (346 | ) | 536 | |||||||
Harris Corp. | (954 | ) | (515 | ) | ||||||
Kansas City Southern | (890 | ) | 2,020 | |||||||
Leucadia National Corp. | (5,029 | ) | 3,168 | |||||||
Lockheed Martin Corp. | (180 | ) | (40 | ) | ||||||
MAXIMUS, Inc. | (560 | ) | 196 | |||||||
Microchip Technology, Inc. | (1,749 | ) | 2,606 | |||||||
Mohawk Industries, Inc. | (401 | ) | 2,109 | |||||||
Monster Beverage Corp. | (585 | ) | (11,957 | ) | ||||||
Neurocrine Biosciences, Inc. | (249 | ) | 491 | |||||||
Newell Brands, Inc. | (159 | ) | (183 | ) | ||||||
Post Holdings, Inc. | (286 | ) | (132 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
36
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Goldman Sachs International | Reynolds American, Inc. | (1,609 | ) | $ | (2,076 | ) | ||||
(Short Positions — continued) | Ryder System, Inc. | (1,230 | ) | 652 | ||||||
salesforce.com, Inc. | (419 | ) | 172 | |||||||
Spectrum Brands Holdings, Inc. | (718 | ) | (2,168 | ) | ||||||
Splunk, Inc. | (1,540 | ) | (508 | ) | ||||||
SS&C Technologies Holdings, Inc. | (1,265 | ) | 240 | |||||||
Stericycle, Inc. | (603 | ) | 43,753 | |||||||
Tesla Motors, Inc. | (189 | ) | 2,453 | |||||||
TransDigm Group, Inc. | (65 | ) | 197 | |||||||
Tyler Technologies, Inc. | (615 | ) | (3,401 | ) | ||||||
Under Armour, Inc. | (108 | ) | 340 | |||||||
Verisk Analytics, Inc. | (1,056 | ) | 1,278 | |||||||
ViaSat, Inc. | (1,052 | ) | (158 | ) | ||||||
Visa, Inc. | (525 | ) | 677 | |||||||
Vulcan Materials Co. | (50 | ) | 79 | |||||||
Waste Connections, Inc. | (1,327 | ) | (3,284 | ) | ||||||
WR Grace & Co. | (518 | ) | 508 | |||||||
Yahoo!, Inc. | (2,148 | ) | 1,095 | |||||||
|
| |||||||||
56,869 | ||||||||||
|
| |||||||||
Total Short Positions of Contracts for Differences | 310,278 | |||||||||
|
| |||||||||
Total Long and Short Positions of Contracts for Differences | (102,398 | ) | ||||||||
|
| |||||||||
Net other receivables/(payables) | (305,526 | ) | ||||||||
|
| |||||||||
Total Contracts for Differences, at value | $ | (407,924 | ) | |||||||
|
| |||||||||
Australia | ||||||||||
Morgan Stanley | Amcor Ltd. | 2,611 | 327 | |||||||
(Long Positions) | AMP Ltd. | 6,083 | 201 | |||||||
Australia & New Zealand Banking Group Ltd. | 1,129 | 264 | ||||||||
BHP Billiton plc | 1,577 | 316 | ||||||||
Computershare Ltd. | 3,508 | (76 | ) | |||||||
CSL Ltd. | 427 | 355 | ||||||||
Domino’s Pizza Enterprises Ltd. | 56 | 2 | ||||||||
Fortescue Metals Group Ltd. | 13,430 | 3,373 | ||||||||
Iluka Resources Ltd. | 631 | 74 | ||||||||
Kingsgate Consolidated Ltd. | 5,105 | 112 | ||||||||
Medusa Mining Ltd. | 7,283 | (305 | ) | |||||||
Metals X Ltd. | 7,267 | (99 | ) | |||||||
Newcrest Mining Ltd. | 2,963 | 2,340 | ||||||||
Star Entertainment Grp Ltd. (The) | 572 | (37 | ) | |||||||
Telstra Corp. Ltd. | 6,797 | (113 | ) | |||||||
TPG Telecom Ltd. | 5,019 | (392 | ) | |||||||
Woodside Petroleum Ltd. | 1,006 | 612 | ||||||||
|
| |||||||||
6,954 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
37
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Belgium | ||||||||||
(Long Positions — continued) | Ageas | 588 | $ | 296 | ||||||
bpost SA | 972 | 493 | ||||||||
KBC Groep NV | 508 | 107 | ||||||||
|
| |||||||||
896 | ||||||||||
|
| |||||||||
Bermuda | ||||||||||
Everest Re Group Ltd. | 426 | (396 | ) | |||||||
|
| |||||||||
Brazil | ||||||||||
MRV Engenharia e Participacoes SA | 2,588 | 83 | ||||||||
|
| |||||||||
Canada | ||||||||||
Argonaut Gold, Inc. | 5,176 | 2,084 | ||||||||
Bank of Nova Scotia (The) | 464 | 357 | ||||||||
Barrick Gold Corp. | 1,699 | 4,927 | ||||||||
Birchcliff Energy Ltd. | 7,402 | 250 | ||||||||
Canadian Imperial Bank of Commerce | 440 | 280 | ||||||||
Canadian National Railway Co. | 1,022 | (675 | ) | |||||||
Canadian Natural Resources Ltd. | 928 | (466 | ) | |||||||
Canadian Pacific Railway Ltd. | 187 | 203 | ||||||||
Canadian Tire Corp. Ltd. | 240 | 52 | ||||||||
Canfor Pulp Products, Inc. | 2,246 | (349 | ) | |||||||
Cascades, Inc. | 3,315 | 198 | ||||||||
CCL Industries, Inc. | 203 | 238 | ||||||||
Centerra Gold, Inc. | 4,372 | (715 | ) | |||||||
Cogeco Communications, Inc. | 483 | (382 | ) | |||||||
Cogeco, Inc. | 623 | (129 | ) | |||||||
Constellation Software, Inc. | 107 | (2,159 | ) | |||||||
Continental Gold, Inc. | 3,715 | 698 | ||||||||
CT Real Estate Investment Trust | 2,507 | (25 | ) | |||||||
Endeavour Silver Corp. | 965 | 361 | ||||||||
Enghouse Systems Ltd. | 528 | 79 | ||||||||
Finning International, Inc. | 1,670 | 978 | ||||||||
Great Canadian Gaming Corp. | 1,689 | 714 | ||||||||
Intertape Polymer Group, Inc. | 1,911 | (298 | ) | |||||||
Labrador Iron Ore Royalty Corp. | 1,238 | 1,169 | ||||||||
Linamar Corp. | 577 | (1,700 | ) | |||||||
Magna International, Inc. | 634 | (964 | ) | |||||||
Methanex Corp. | 683 | (311 | ) | |||||||
Pason Systems, Inc. | 1,933 | 1,155 | ||||||||
Penn West Petroleum Ltd. | 19,384 | 1,212 | ||||||||
Potash Corp. of Saskatchewan, Inc. | 1,186 | (217 | ) | |||||||
Primero Mining Corp. | 6,098 | 1,327 | ||||||||
Progressive Waste Solutions Ltd. | 1,110 | 1,321 | ||||||||
Quebecor, Inc. | 831 | 86 |
See Accompanying Notes to the Consolidated Financial Statements.
38
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Brazil | ||||||||||
Morgan Stanley | Silver Standard Resources, Inc. | 2,195 | $ | 1,606 | ||||||
(Long Positions — continued) | Silvercorp Metals, Inc. | 2,610 | 287 | |||||||
Teck Resources Ltd. | 2,659 | 3,720 | ||||||||
TELUS Corp. | 908 | 560 | ||||||||
Timmins Gold Corp. | 8,062 | 404 | ||||||||
TransForce, Inc. | 1,432 | 894 | ||||||||
|
| |||||||||
16,770 | ||||||||||
|
| |||||||||
China | ||||||||||
3SBio, Inc. | 500 | (3 | ) | |||||||
Datang International Power Generation Co. Ltd. | 4,000 | (9 | ) | |||||||
ENN Energy Holdings Ltd. | 4,475 | (876 | ) | |||||||
Momo, Inc. | 520 | (47 | ) | |||||||
Qihoo 360 Technology Co. Ltd. | 97 | (6 | ) | |||||||
Sunny Optical Technology Group Co. Ltd. | 1,000 | (49 | ) | |||||||
Yangzijiang Shipbuilding Holdings Ltd. | 6,200 | (18 | ) | |||||||
YY, Inc. | 121 | (31 | ) | |||||||
|
| |||||||||
(1,039 | ) | |||||||||
|
| |||||||||
Denmark | ||||||||||
AP Moeller — Maersk A/S | 36 | (620 | ) | |||||||
Chr Hansen Holding A/S | 411 | 156 | ||||||||
H Lundbeck A/S | 137 | (65 | ) | |||||||
Pandora A/S | 357 | (21 | ) | |||||||
Vestas Wind Systems A/S | 557 | 2,707 | ||||||||
|
| |||||||||
2,157 | ||||||||||
|
| |||||||||
Finland | ||||||||||
Nokian Renkaat OYJ | 748 | 74 | ||||||||
|
| |||||||||
France | ||||||||||
Bureau Veritas SA | 132 | (2 | ) | |||||||
Eiffage SA | 65 | 81 | ||||||||
Eurazeo SA | 367 | (369 | ) | |||||||
Safran SA | 44 | (113 | ) | |||||||
SCOR SE | 778 | (774 | ) | |||||||
Unibail-Rodamco SE | 50 | (31 | ) | |||||||
Valeo SA | 193 | 196 | ||||||||
|
| |||||||||
(1,012 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
39
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized Appreciation/ (Depreciation) | |||||||
Germany | ||||||||||
Morgan Stanley | Covestro AG | 378 | $ | 503 | ||||||
(Long Positions — continued) | Hannover Rueck SE | 286 | (39 | ) | ||||||
HOCHTIEF AG | 181 | 60 | ||||||||
HUGO BOSS AG | 366 | (77 | ) | |||||||
KION Group AG | 280 | (450 | ) | |||||||
ProSiebenSat.1 Media SE | 461 | 213 | ||||||||
Rational AG | 54 | 363 | ||||||||
Schaeffler AG | 57 | (10 | ) | |||||||
Stroeer SE & Co. KGaA | 219 | (356 | ) | |||||||
Talanx AG | 743 | (310 | ) | |||||||
|
| |||||||||
(103 | ) | |||||||||
|
| |||||||||
Greece | ||||||||||
Costamare, Inc. | 297 | (77 | ) | |||||||
|
| |||||||||
Hong Kong | ||||||||||
BOC Hong Kong Holdings Ltd. | 8,000 | (653 | ) | |||||||
Brightoil Petroleum Holdings Ltd. | 33,477 | (106 | ) | |||||||
China Precious Metal Resources Holdings Co. Ltd. | 202,000 | 354 | ||||||||
Chinese Estates Holdings Ltd. | 5,500 | 31 | ||||||||
CLP Holdings Ltd. | 2,813 | (143 | ) | |||||||
Guoco Group Ltd. | 714 | — | ||||||||
Hang Lung Group Ltd. | 8,000 | (217 | ) | |||||||
Hang Lung Properties Ltd. | 13,000 | (363 | ) | |||||||
Hongkong Land Holdings Ltd. | 1,000 | (165 | ) | |||||||
Lifestyle International Holdings Ltd. | 6,500 | 1,129 | ||||||||
Link REIT | 4,000 | (487 | ) | |||||||
Melco Crown Entertainment Ltd. | 298 | (69 | ) | |||||||
Orient Overseas International Ltd. | 5,500 | (441 | ) | |||||||
Shenzhen International Holdings Ltd. | 500 | — | ||||||||
|
| |||||||||
(1,130 | ) | |||||||||
|
| |||||||||
Ireland | ||||||||||
AerCap Holdings NV | 845 | (963 | ) | |||||||
DCC plc | 56 | (15 | ) | |||||||
Glanbia plc | 708 | (509 | ) | |||||||
Paddy Power Betfair plc | 212 | 594 | ||||||||
Ryanair Holdings plc | 623 | (243 | ) | |||||||
Smurfit Kappa Group plc | 35 | 8 | ||||||||
|
| |||||||||
(1,128) | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
40
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Israel | ||||||||||
Morgan Stanley | Check Point Software Technologies Ltd. | 14 | $ | (13 | ) | |||||
(Long Positions — continued) | Elbit Systems Ltd. | 51 | (60 | ) | ||||||
First International Bank of Israel Ltd. | 1,750 | (409 | ) | |||||||
Mobileye NV | 33 | (22 | ) | |||||||
Taro Pharmaceutical Industries Ltd. | 158 | (95 | ) | |||||||
|
| |||||||||
(599 | ) | |||||||||
|
| |||||||||
Italy | ||||||||||
A2A SpA | 18,140 | 406 | ||||||||
Banca Monte dei Paschi di Siena SpA | 8,564 | 109 | ||||||||
Brembo SpA | 466 | 305 | ||||||||
De’ Longhi SpA | 1,094 | 1,673 | ||||||||
Eni SpA | 1,456 | 288 | ||||||||
EXOR SpA | 574 | (181 | ) | |||||||
Ferrari NV | 1,897 | 3,397 | ||||||||
Moncler SpA | 930 | 117 | ||||||||
Poste Italiane SpA | 659 | (2 | ) | |||||||
Recordati SpA | 1,388 | 76 | ||||||||
|
| |||||||||
6,188 | ||||||||||
|
| |||||||||
Japan | ||||||||||
Aeon Mall Co. Ltd. | 1,800 | (2,098 | ) | |||||||
Asahi Glass Co. Ltd. | 1,000 | (165 | ) | |||||||
Concordia Financial Group Ltd. | 600 | (109 | ) | |||||||
CYBERDYNE, Inc. | 100 | (124 | ) | |||||||
Daikyo, Inc. | 17,000 | (820 | ) | |||||||
Frontier Real Estate Investment Corp. | 5 | (296 | ) | |||||||
Furukawa Electric Co. Ltd. | 9,000 | 455 | ||||||||
Hitachi Construction Machinery Co. Ltd. | 1,400 | (2,217 | ) | |||||||
Hitachi Transport System Ltd. | 200 | (95 | ) | |||||||
Hokuhoku Financial Group, Inc. | 15,000 | (3,154 | ) | |||||||
Ibiden Co. Ltd. | 2,000 | (2,144 | ) | |||||||
Kissei Pharmaceutical Co. Ltd. | 1,062 | (1,075 | ) | |||||||
KYORIN Holdings, Inc. | 1,100 | (948 | ) | |||||||
Leopalace21 Corp. | 800 | (212 | ) | |||||||
Life Corp. | 700 | 413 | ||||||||
Marubeni Corp. | 5,100 | (971 | ) | |||||||
Medipal Holdings Corp. | 1,700 | (1,776 | ) | |||||||
Miraca Holdings, Inc. | 100 | (212 | ) | |||||||
MISUMI Group, Inc. | 700 | (745 | ) | |||||||
Mitsubishi Shokuhin Co. Ltd. | 500 | (62 | ) | |||||||
Mitsubishi UFJ Financial Group, Inc. | 5,400 | (3,391 | ) | |||||||
Mori Trust Sogo Reit, Inc. | 13 | 137 | ||||||||
MS&AD Insurance Group Holdings, Inc. | 100 | (283 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
41
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Japan | ||||||||||
Morgan Stanley | Nagase & Co. Ltd. | 2,400 | $ | (1,447 | ) | |||||
(Long Positions — continued) | Nichi-iko Pharmaceutical Co. Ltd. | 700 | (835 | ) | ||||||
Nichirei Corp. | 3,834 | 1,331 | ||||||||
Nippon Telegraph & Telephone Corp. | 852 | 656 | ||||||||
Nipro Corp. | 3,000 | (444 | ) | |||||||
Nissan Chemical Industries Ltd. | 200 | (121 | ) | |||||||
ORIX Corp. | 1,900 | �� | (1,821 | ) | ||||||
Pola Orbis Holdings, Inc. | 25 | (29 | ) | |||||||
SCSK Corp. | 66 | (28 | ) | |||||||
Sega Sammy Holdings, Inc. | 300 | (163 | ) | |||||||
Sony Financial Holdings, Inc. | 200 | (259 | ) | |||||||
Start Today Co. Ltd. | 126 | (5 | ) | |||||||
Sumitomo Mitsui Financial Group, Inc. | 879 | (3,548 | ) | |||||||
Sundrug Co. Ltd. | 92 | (56 | ) | |||||||
Suzuken Co. Ltd. | 800 | (926 | ) | |||||||
T&D Holdings, Inc. | 2,200 | (2,520 | ) | |||||||
Takara Holdings, Inc. | 3,000 | (85 | ) | |||||||
Toho Gas Co. Ltd. | 4,960 | 288 | ||||||||
Toho Holdings Co. Ltd. | 1,000 | (602 | ) | |||||||
Tokai Tokyo Financial Holdings, Inc. | 1,300 | (645 | ) | |||||||
Tokyo Gas Co. Ltd. | 6,000 | (712 | ) | |||||||
Tokyu REIT, Inc. | 17 | (456 | ) | |||||||
Toyota Boshoku Corp. | 2,400 | 1,618 | ||||||||
Tsumura & Co. | 1,000 | (364 | ) | |||||||
Ube Industries Ltd. | 18,000 | (860 | ) | |||||||
|
| |||||||||
(31,925 | ) | |||||||||
|
| |||||||||
Luxembourg | ||||||||||
Millicom International Cellular SA | 457 | (312 | ) | |||||||
|
| |||||||||
Macao | ||||||||||
Sands China Ltd. | 6,800 | (410 | ) | |||||||
|
| |||||||||
Netherlands | ||||||||||
ABN AMRO Group NV | 334 | 104 | ||||||||
Akzo Nobel NV | 186 | (59 | ) | |||||||
Delta Lloyd NV | 5,362 | (265 | ) | |||||||
Heineken Holding NV | 345 | 255 | ||||||||
Heineken NV | 151 | 207 | ||||||||
NN Group NV | 583 | 183 | ||||||||
NXP SemiConductors NV | 60 | (85 | ) | |||||||
STMicroelectronics NV | 2,316 | (660 | ) | |||||||
|
| |||||||||
(320 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
42
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
New Zealand | ||||||||||
Morgan Stanley | Air New Zealand Ltd. | 15,532 | $ | (1,441 | ) | |||||
(Long Positions — continued) | Argosy Property Ltd. | 6,725 | 80 | |||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,403 | 178 | ||||||||
Freightways Ltd. | 1,198 | 93 | ||||||||
Genesis Energy Ltd. | 9,902 | 139 | ||||||||
Goodman Property Trust | 6,731 | 204 | ||||||||
SKY Network Television Ltd. | 6,747 | 1,192 | ||||||||
Stride Property Ltd. | 2,713 | 32 | ||||||||
Trade Me Group Ltd. | 4,108 | 287 | ||||||||
Z Energy Ltd. | 4,850 | 2,432 | ||||||||
|
| |||||||||
3,196 | ||||||||||
|
| |||||||||
Norway | ||||||||||
Aker Solutions ASA | 7,650 | (123 | ) | |||||||
Borregaard ASA | 2,637 | 797 | ||||||||
Protector Forsikring ASA | 2,715 | 1,317 | ||||||||
SpareBank 1 SMN | 3,572 | 347 | ||||||||
SpareBank 1 SR-Bank ASA | 4,431 | 1,004 | ||||||||
TGS Nopec Geophysical Co. ASA | 1,696 | 14 | ||||||||
Veidekke ASA | 2,457 | (383 | ) | |||||||
Yara International ASA | 186 | 70 | ||||||||
|
| |||||||||
3,043 | ||||||||||
|
| |||||||||
Peru | ||||||||||
Cia de Minas Buenaventura SAA | 2,950 | 3,688 | ||||||||
|
| |||||||||
Philippines | ||||||||||
Security Bank Corp. | 1,300 | 17 | ||||||||
|
| |||||||||
Portugal | ||||||||||
Navigator Co. SA (The) | 5,561 | 120 | ||||||||
NOS SGPS SA | 3,171 | 644 | ||||||||
|
| |||||||||
764 | ||||||||||
|
| |||||||||
Singapore | ||||||||||
CapitaLand Commercial Trust Ltd. | 22,400 | (264 | ) | |||||||
DBS Group Holdings Ltd. | 2,000 | (578 | ) | |||||||
Great Eastern Holdings Ltd. | 800 | 424 | ||||||||
Haw Par Corp. Ltd. | 1,292 | 222 | ||||||||
Mapletree Logistics Trust | 31,300 | (27 | ) | |||||||
SATS Ltd. | 8,000 | 570 | ||||||||
Singapore Exchange Ltd. | 4,000 | (312 | ) | |||||||
Singapore Press Holdings Ltd. | 7,800 | (410 | ) | |||||||
|
| |||||||||
(375 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
43
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
South Africa | ||||||||||
Morgan Stanley | AVI Ltd. | 3,572 | $ | (62 | ) | |||||
(Long Positions — continued) | Mondi plc | 1,618 | 204 | |||||||
|
| |||||||||
142 | ||||||||||
|
| |||||||||
South Korea | ||||||||||
LG Household & Health Care Ltd. | 5 | 55 | ||||||||
Medy-Tox, Inc. | 5 | (24 | ) | |||||||
Taihan Electric Wire Co. | 5,258 | 50 | ||||||||
|
| |||||||||
81 | ||||||||||
|
| |||||||||
Spain | ||||||||||
Enagas SA | 737 | 517 | ||||||||
Ferrovial SA | 842 | (281 | ) | |||||||
|
| |||||||||
236 | ||||||||||
|
| |||||||||
Sweden | ||||||||||
Axfood AB | 1,955 | (92 | ) | |||||||
Betsson AB | 1,319 | (356 | ) | |||||||
BillerudKorsnas AB | 1,429 | (296 | ) | |||||||
Boliden AB | 1,172 | 335 | ||||||||
Clas Ohlson AB | 1,435 | 419 | ||||||||
Electrolux AB | 646 | 1,782 | ||||||||
Hemfosa Fastigheter AB | 1,405 | (60 | ) | |||||||
Intrum Justitia AB | 766 | 515 | ||||||||
L E Lundbergforetagen AB | 557 | (101 | ) | |||||||
Loomis AB | 792 | (123 | ) | |||||||
Meda AB | 267 | (59 | ) | |||||||
Mycronic AB | 2,512 | 8 | ||||||||
NetEnt AB | 719 | (753 | ) | |||||||
Nordnet AB | 1,520 | (64 | ) | |||||||
Pandox AB | 317 | (47 | ) | |||||||
Sandvik AB | 1,238 | (525 | ) | |||||||
Skanska AB | 1,142 | (80 | ) | |||||||
Svenska Cellulosa AB SCA | 432 | 325 | ||||||||
Swedish Match AB | 692 | (1,823 | ) | |||||||
Wihlborgs Fastigheter AB | 1,272 | 264 | ||||||||
|
| |||||||||
(731 | ) | |||||||||
|
| |||||||||
Switzerland | ||||||||||
Adecco SA | 356 | (366 | ) | |||||||
Baloise Holding AG | 179 | (20 | ) | |||||||
EMS-Chemie Holding AG | 53 | 378 | ||||||||
Givaudan SA | 14 | 105 | ||||||||
Lonza Group AG | 98 | 46 | ||||||||
Schindler Holding AG | 142 | (215 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
44
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Switzerland | ||||||||||
Morgan Stanley | Sika AG | 6 | $ | 544 | ||||||
(Long Positions — continued) | Swiss Life Holding AG | 95 | (503 | ) | ||||||
Zurich Insurance Group AG | 81 | 108 | ||||||||
|
| |||||||||
77 | ||||||||||
|
| |||||||||
Taiwan | ||||||||||
Nanya Technology Corp. | 8,000 | 4 | ||||||||
Yuanta/P-shares Taiwan Top 50 Fund | 2,000 | (112 | ) | |||||||
|
| |||||||||
(108 | ) | |||||||||
|
| |||||||||
Turkey | ||||||||||
Koza Altin Isletmeleri AS | 3,956 | 609 | ||||||||
|
| |||||||||
United Kingdom | ||||||||||
3i Group plc | 3,953 | (458 | ) | |||||||
Beazley plc | 3,214 | 31 | ||||||||
Berendsen plc | 1,473 | 504 | ||||||||
BT Group plc | 4,807 | 566 | ||||||||
Daily Mail & General Trust plc | 2,361 | (383 | ) | |||||||
Delphi Automotive plc | 449 | (1,904 | ) | |||||||
Ensco plc | 6,678 | 2,404 | ||||||||
Henderson Group plc | 6,097 | 171 | ||||||||
Hochschild Mining plc | 4,964 | 780 | ||||||||
Imperial Brands plc | 439 | 490 | ||||||||
Informa plc | 499 | (51 | ) | |||||||
Intermediate Capital Group plc | 2,998 | (309 | ) | |||||||
ITV plc | 5,748 | (589 | ) | |||||||
Jupiter Fund Management plc | 4,557 | (107 | ) | |||||||
Meggitt plc | 3,605 | (236 | ) | |||||||
Moneysupermarket.com Group plc | 3,613 | 136 | ||||||||
Next plc | 241 | 34 | ||||||||
Noble Corp. plc | 6,624 | (1,193 | ) | |||||||
Reckitt Benckiser Group plc | 242 | (40 | ) | |||||||
Rightmove plc | 384 | (515 | ) | |||||||
Rio Tinto plc | 90 | 96 | ||||||||
Segro plc | 4,279 | 584 | ||||||||
Severn Trent plc | 683 | 145 | ||||||||
Stagecoach Group plc | 7,153 | 85 | ||||||||
Standard Chartered plc | 3,386 | (443 | ) | |||||||
Taylor Wimpey plc | 5,215 | (116 | ) | |||||||
Unilever plc | 629 | (524 | ) | |||||||
WH Smith plc | 1,203 | (119 | ) | |||||||
WPP plc | 1,057 | (137 | ) | |||||||
|
| |||||||||
(1,098 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
45
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Acuity Brands, Inc. | 248 | $ | (3,090 | ) | |||||
(Long Positions — continued) | ADT Corp. (The) | 1,350 | 27 | |||||||
Aflac Inc | 403 | 391 | ||||||||
Agilent Technologies, Inc. | 2,727 | (1,091 | ) | |||||||
AGL Resources, Inc. | 882 | 203 | ||||||||
Airgas, Inc. | 209 | 48 | ||||||||
Align Technology, Inc. | 346 | (868 | ) | |||||||
Amazon.com, Inc. | 133 | 5,680 | ||||||||
AMC Networks, Inc. | 1,759 | (545 | ) | |||||||
American Airlines Group, Inc. | 2,060 | (4,594 | ) | |||||||
American Financial Group, Inc. | 1,174 | (540 | ) | |||||||
AmTrust Financial Services, Inc. | 3,419 | (1,846 | ) | |||||||
Apple, Inc. | 699 | (7,416 | ) | |||||||
Avangrid, Inc. | 1,358 | 1,439 | ||||||||
Avery Dennison Corp. | 1,321 | (172 | ) | |||||||
Avnet, Inc. | 1,916 | (6,265 | ) | |||||||
Baker Hughes, Inc. | 563 | 1,441 | ||||||||
Baxalta, Inc. | 1,205 | 880 | ||||||||
Baxter International, Inc. | 663 | 166 | ||||||||
Best Buy Co., Inc. | 2,730 | (2,921 | ) | |||||||
Big Lots, Inc. | 1,641 | (2,987 | ) | |||||||
Boeing Co. (The) | 704 | 1,098 | ||||||||
Bright Horizons Family Solutions, Inc. | 670 | (7 | ) | |||||||
Brocade Communications Systems, Inc. | 8,343 | (1,252 | ) | |||||||
Bruker Corp. | 2,795 | (587 | ) | |||||||
Cablevision Systems Corp. | 1,578 | (110 | ) | |||||||
Casey’s General Stores, Inc. | 794 | 88 | ||||||||
Cavium, Inc. | 746 | (5,640 | ) | |||||||
CBRE Group, Inc. | 2,428 | (1,821 | ) | |||||||
Centene Corp. | 865 | (4,109 | ) | |||||||
CenterPoint Energy, Inc. | 4,203 | 1,471 | ||||||||
Charles River Laboratories International, Inc. | 982 | (2,190 | ) | |||||||
Citrix Systems, Inc. | 1,640 | (2,214 | ) | |||||||
Coca-Cola Enterprises, Inc. | 1,393 | 1,142 | ||||||||
Columbia Pipeline Group, Inc. | 1,393 | (246 | ) | |||||||
Communications Sales & Leasing, Inc. | 3,743 | (1,160 | ) | |||||||
CR Bard, Inc. | 521 | 3,584 | ||||||||
Cree, Inc. | 1,823 | (146 | ) | |||||||
Crown Holdings, Inc. | 1,951 | (1,736 | ) | |||||||
Darden Restaurants, Inc. | 1,434 | (1,592 | ) | |||||||
DaVita HealthCare Partners, Inc. | �� | 351 | (439 | ) | ||||||
Deluxe Corp. | 1,329 | 758 | ||||||||
Dick’s Sporting Goods, Inc. | 2,284 | (1,485 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
46
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Dr Pepper Snapple Group, Inc. | 906 | $ | 2,836 | ||||||
(Long Positions — continued) | DreamWorks Animation SKG, Inc. | 660 | (24 | ) | ||||||
DuPont Fabros Technology, Inc. | 2,015 | (2,217 | ) | |||||||
E*TRADE Financial Corp. | 3,461 | (3,738 | ) | |||||||
East West Bancorp, Inc. | 1,979 | (1,959 | ) | |||||||
Education Realty Trust, Inc. | 673 | (592 | ) | |||||||
Edwards Lifesciences Corp. | 777 | (2,044 | ) | |||||||
Electronic Arts, Inc. | 1,626 | (5,658 | ) | |||||||
Eli Lilly & Co. | 356 | (263 | ) | |||||||
Entergy Corp. | 1,101 | 628 | ||||||||
Equity LifeStyle Properties, Inc. | 1,185 | (2,133 | ) | |||||||
Expedia, Inc. | 645 | 5,889 | ||||||||
F5 Networks, Inc. | 841 | (522 | ) | |||||||
Facebook, Inc. | 735 | 6,483 | ||||||||
FEI Co. | 260 | (491 | ) | |||||||
Fidelity National Information Services, Inc. | 399 | 249 | ||||||||
Fifth Third Bancorp | 5,316 | (2,339 | ) | |||||||
FMC Technologies, Inc. | 3,486 | 6,937 | ||||||||
Fortinet, Inc. | 2,915 | 4,547 | ||||||||
Global Payments, Inc. | 1,093 | (1,104 | ) | |||||||
GNC Holdings, Inc. | 2,487 | (27,407 | ) | |||||||
GoDaddy, Inc. | 762 | (175 | ) | |||||||
Goodyear Tire & Rubber Co. (The) | 2,632 | (9,844 | ) | |||||||
Graphic Packaging Holding Co. | 6,491 | 1,493 | ||||||||
Hanover Insurance Group, Inc. (The) | 975 | (205 | ) | |||||||
HD Supply Holdings, Inc. | 2,408 | (867 | ) | |||||||
Healthcare Realty Trust, Inc. | 887 | (133 | ) | |||||||
Hologic, Inc. | 2,528 | (10,390 | ) | |||||||
Hospitality Properties Trust | 3,001 | (1,302 | ) | |||||||
Incyte Corp. | 705 | (1,523 | ) | |||||||
Ingram Micro, Inc. | 204 | (78 | ) | |||||||
Integra LifeSciences Holdings Corp. | 916 | 4,681 | ||||||||
Intercontinental Exchange, Inc. | 359 | (1,562 | ) | |||||||
Interpublic Group of Cos, Inc. (The) | 3,821 | (1,872 | ) | |||||||
Ionis Pharmaceuticals, Inc. | 1,365 | (1,406 | ) | |||||||
iShares MSCI Indonesia Fund | 42 | (12 | ) | |||||||
iShares MSCI Malaysia Fund | 1,199 | (180 | ) | |||||||
Jack in the Box, Inc. | 970 | (1,377 | ) | |||||||
Johnson & Johnson | 245 | (203 | ) | |||||||
Jones Lang LaSalle, Inc. | 729 | (2,457 | ) | |||||||
JPMorgan Chase & Co. | 897 | (655 | ) | |||||||
Juniper Networks, Inc. | 4,662 | (699 | ) | |||||||
KLA-Tencor Corp. | 834 | (1,585 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
47
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | L Brands, Inc. | 854 | $ | (137 | ) | |||||
(Long Positions — continued) | Lamar Advertising Co. | 1,351 | (784 | ) | ||||||
Leidos Holdings, Inc. | 1,333 | (2,973 | ) | |||||||
Lexmark International, Inc. | 175 | (39 | ) | |||||||
Lincoln Electric Holdings, Inc. | 1,145 | (595 | ) | |||||||
LyondellBasell Industries NV | 926 | (6,454 | ) | |||||||
Marriott Vacations Worldwide Corp. | 708 | (2,322 | ) | |||||||
Martin Marietta Materials, Inc. | 83 | (85 | ) | |||||||
Masco Corp. | 2,527 | (1,919 | ) | |||||||
McKesson Corp. | 500 | (4,675 | ) | |||||||
Microsoft Corp. | 1,423 | (2,234 | ) | |||||||
Molson Coors Brewing Co. | 837 | (310 | ) | |||||||
Mosaic Co. (The) | 1,546 | (866 | ) | |||||||
National Fuel Gas Co. | 1,650 | 2,574 | ||||||||
NetApp, Inc. | 3,896 | (3,467 | ) | |||||||
NextEra Energy, Inc. | 777 | 1,601 | ||||||||
NIKE, Inc. | 1,151 | (691 | ) | |||||||
NVIDIA Corp. | 2,220 | (2,109 | ) | |||||||
Office Depot, Inc. | 2,523 | 101 | ||||||||
PayPal Holdings, Inc. | 703 | (387 | ) | |||||||
Piedmont Natural Gas Co., Inc. | 488 | 39 | ||||||||
Popular, Inc. | 2,910 | (1,280 | ) | |||||||
Principal Financial Group, Inc. | 2,035 | (2,503 | ) | |||||||
Procter & Gamble Co. (The) | 1,075 | 1,333 | ||||||||
Ralph Lauren Corp. | 279 | 139 | ||||||||
Red Hat, Inc. | 1,112 | (1,245 | ) | |||||||
Regency Centers Corp. | 900 | (549 | ) | |||||||
Reinsurance Group of America, Inc. | 994 | (1,580 | ) | |||||||
ResMed, Inc. | 731 | (3,765 | ) | |||||||
Ryder System, Inc. | 881 | (467 | ) | |||||||
Sabre Corp. | 912 | 46 | ||||||||
SanDisk Corp. | 179 | (118 | ) | |||||||
Sempra Energy | 259 | 557 | ||||||||
Simon Property Group, Inc. | 393 | (1,093 | ) | |||||||
Sirius XM Holdings, Inc. | 23,913 | (478 | ) | |||||||
Snap-on, Inc. | 523 | (1,308 | ) | |||||||
Spirit AeroSystems Holdings, Inc. | 2,083 | (958 | ) | |||||||
St Jude Medical, Inc. | 667 | 10,685 | ||||||||
Stanley Black & Decker, Inc. | 820 | (705 | ) | |||||||
Staples, Inc. | 7,350 | (3,234 | ) | |||||||
SunTrust Banks, Inc. | 2,198 | (1,539 | ) | |||||||
Superior Energy Services, Inc. | 2,778 | 3,778 | ||||||||
Symantec Corp. | 1,494 | (2,084 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
48
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Synovus Financial Corp. | 3,007 | $ | (1,443 | ) | |||||
(Long Positions — continued) | TECO Energy, Inc. | 1,009 | 10 | |||||||
Telephone & Data Systems, Inc. | 1,157 | (625 | ) | |||||||
Tenneco, Inc. | 1,007 | (4,219 | ) | |||||||
Terex Corp. | 310 | 47 | ||||||||
TerraForm Global, Inc. | 318 | (60 | ) | |||||||
Tiffany & Co. | 738 | (923 | ) | |||||||
Time Warner Cable, Inc. | 197 | 250 | ||||||||
Total System Services, Inc. | 546 | (431 | ) | |||||||
TransUnion | 1,560 | 3,432 | ||||||||
Tyler Technologies, Inc. | 203 | 1,123 | ||||||||
United Rentals, Inc. | 1,802 | 54 | ||||||||
Valero Energy Corp. | 1,235 | (3,631 | ) | |||||||
Verizon Communications, Inc. | 991 | 1,056 | ||||||||
Vertex Pharmaceuticals, Inc. | 719 | 144 | ||||||||
Western Alliance Bancorp | 2,395 | (1,485 | ) | |||||||
Western Union Co. (The) | 3,786 | (795 | ) | |||||||
Westlake Chemical Corp. | 1,766 | (2,402 | ) | |||||||
WestRock Co. | 869 | 912 | ||||||||
Weyerhaeuser Co. | 2,898 | (348 | ) | |||||||
WisdomTree Investments, Inc. | 769 | (1,507 | ) | |||||||
Worthington Industries, Inc. | 896 | 547 | ||||||||
Xerox Corp. | 8,198 | (1,722 | ) | |||||||
Xylem, Inc. | 1,957 | (2,114 | ) | |||||||
Yahoo!, Inc. | 1,816 | (926 | ) | |||||||
Zoetis, Inc. | 983 | (477 | ) | |||||||
|
| |||||||||
(139,559 | ) | |||||||||
|
| |||||||||
Total Long Positions of Contracts for Differences | (135,347 | ) | ||||||||
|
| |||||||||
Australia | ||||||||||
Morgan Stanley | AGL Energy Ltd. | (1,893 | ) | (113 | ) | |||||
(Short Positions) | Alumina Ltd. | (21,314 | ) | (2 | ) | |||||
Bendigo & Adelaide Bank Ltd. | (3,264 | ) | (271 | ) | ||||||
BlueScope Steel Ltd. | (5,857 | ) | 76 | |||||||
Commonwealth Bank of Australia | (413 | ) | 28 | |||||||
Healthscope Ltd. | (11,809 | ) | 289 | |||||||
Incitec Pivot Ltd. | (9,811 | ) | (943 | ) | ||||||
Insurance Australia Group Ltd. | (6,506 | ) | 47 | |||||||
Medibank Pvt Ltd. | (12,153 | ) | 179 | |||||||
Platinum Asset Management Ltd. | (1,064 | ) | 16 | |||||||
QBE Insurance Group Ltd. | (2,757 | ) | 174 | |||||||
South32 Ltd. | (19,077 | ) | (367 | ) | ||||||
Tatts Group Ltd. | (9,953 | ) | (3 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
49
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Australia | ||||||||||
Morgan Stanley | Transurban Group | (3,936 | ) | $ | (147 | ) | ||||
(Short Positions — (Continued) | Treasury Wine Estates Ltd. | (6,360 | ) | (490 | ) | |||||
Vocus Communications Ltd. | (3,940 | ) | 94 | |||||||
|
| |||||||||
(1,433 | ) | |||||||||
|
| |||||||||
Austria | ||||||||||
Telekom Austria AG | (3,879 | ) | (1,063 | ) | ||||||
Verbund AG | (1,584 | ) | (441 | ) | ||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | (425 | ) | 284 | |||||||
|
| |||||||||
(1,220 | ) | |||||||||
|
| |||||||||
Bermuda | ||||||||||
Endurance Specialty Holdings Ltd. | (854 | ) | 51 | |||||||
Hiscox Ltd. | (1,821 | ) | 246 | |||||||
Validus Holdings Ltd. | (1,803 | ) | (1,713 | ) | ||||||
|
| |||||||||
(1,416 | ) | |||||||||
|
| |||||||||
Brazil | ||||||||||
B2W Cia Digital | (2,500 | ) | (83 | ) | ||||||
|
| |||||||||
Canada | ||||||||||
Allied Properties Real Estate Investment Trust | (875 | ) | (940 | ) | ||||||
Atco Ltd. | (581 | ) | (1,347 | ) | ||||||
ATS Automation Tooling Systems, Inc. | (2,859 | ) | (1,025 | ) | ||||||
B2Gold Corp. | (11,792 | ) | (2,965 | ) | ||||||
CAE, Inc. | (2,442 | ) | (180 | ) | ||||||
Callidus Capital Corp. | (2,562 | ) | (8 | ) | ||||||
Canadian Real Estate Investment Trust | (820 | ) | (472 | ) | ||||||
Canadian Utilities Ltd. | (857 | ) | (1,138 | ) | ||||||
Cominar Real Estate Investment Trust | (1,799 | ) | (315 | ) | ||||||
Detour Gold Corp. | (1,431 | ) | (4,691 | ) | ||||||
DHX Media Ltd. | (4,009 | ) | 706 | |||||||
Dorel Industries, Inc. | (1,043 | ) | (400 | ) | ||||||
Enbridge, Inc. | (571 | ) | 20 | |||||||
Fairfax Financial Holdings Ltd. | (50 | ) | 1,284 | |||||||
First Quantum Minerals Ltd. | (4,014 | ) | (6,762 | ) | ||||||
Fortis, Inc. | (859 | ) | (918 | ) | ||||||
Franco-Nevada Corp. | (396 | ) | (1,490 | ) | ||||||
Freehold Royalties Ltd. | (2,590 | ) | (345 | ) | ||||||
Goldcorp, Inc. | (1,401 | ) | (3,615 | ) | ||||||
HudBay Minerals, Inc. | (2,901 | ) | (1,607 | ) | ||||||
lululemon athletica, Inc. | (1,442 | ) | 1,298 | |||||||
Lundin Mining Corp. | (705 | ) | (324 | ) | ||||||
MacDonald Dettwiler & Associates Ltd. | (402 | ) | (124 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
50
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Canada | ||||||||||
Morgan Stanley | MAG Silver Corp. | (3,652 | ) | $ | (3,939 | ) | ||||
(Short Positions — Continued) | Maple Leaf Foods, Inc. | �� | (1,341 | ) | 146 | |||||
New Gold, Inc. | (5,636 | ) | (1,415 | ) | ||||||
Northland Power, Inc. | (1,449 | ) | (241 | ) | ||||||
Novagold Resources, Inc. | (3,313 | ) | (1,682 | ) | ||||||
ProMetic Life Sciences, Inc. | (11,872 | ) | 1,406 | |||||||
Raging River Exploration, Inc. | (4,072 | ) | (302 | ) | ||||||
Restaurant Brands International, Inc. | (2,192 | ) | (3,573 | ) | ||||||
RioCan Real Estate Investment Trust | (148 | ) | (64 | ) | ||||||
Smart Real Estate Investment Trust | (119 | ) | (75 | ) | ||||||
SunOpta, Inc. | (3,234 | ) | 809 | |||||||
TMX Group Ltd. | (900 | ) | (738 | ) | ||||||
Toronto-Dominion Bank (The) | (718 | ) | (358 | ) | ||||||
Vermilion Energy, Inc. | (475 | ) | (903 | ) | ||||||
Yamana Gold, Inc. | (5,712 | ) | (3,569 | ) | ||||||
|
| |||||||||
(39,856 | ) | |||||||||
|
| |||||||||
China | ||||||||||
Alibaba Group Holding Ltd. | (1,871 | ) | 3,679 | |||||||
China Shipping Container Lines Co. Ltd. | (10,000 | ) | 77 | |||||||
Sinotrans Ltd. | (6,000 | ) | 143 | |||||||
|
| |||||||||
3,899 | ||||||||||
|
| |||||||||
Finland | ||||||||||
Kemira OYJ | (2,566 | ) | (226 | ) | ||||||
Outokumpu OYJ | (5,183 | ) | 341 | |||||||
Outotec OYJ | (4,672 | ) | (409 | ) | ||||||
Stora Enso OYJ | (2,747 | ) | 589 | |||||||
|
| |||||||||
295 | ||||||||||
|
| |||||||||
France | ||||||||||
Alstom SA | (931 | ) | 322 | |||||||
Credit Agricole SA | (2,302 | ) | 368 | |||||||
Danone SA | (405 | ) | 436 | |||||||
Electricite de France SA | (436 | ) | (120 | ) | ||||||
Kering | (155 | ) | (374 | ) | ||||||
Pernod Ricard SA | (239 | ) | 123 | |||||||
Remy Cointreau SA | (331 | ) | 398 | |||||||
Rexel SA | (1,549 | ) | (922 | ) | ||||||
Vivendi SA | (1,144 | ) | 433 | |||||||
Zodiac Aerospace | (1,102 | ) | 618 | |||||||
|
| |||||||||
1,282 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
51
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Germany | ||||||||||
Morgan Stanley | Celesio AG | (929 | ) | $ | (224 | ) | ||||
(Short Positions — Continued) | Commerzbank AG | (1,695 | ) | (10 | ) | |||||
Deutsche Lufthansa AG | (1,692 | ) | 667 | |||||||
Fresenius Medical Care AG & Co. KGaA | (303 | ) | 433 | |||||||
MAN SE | (268 | ) | (235 | ) | ||||||
MTU Aero Engines AG | (288 | ) | 321 | |||||||
Puma SE | (165 | ) | (573 | ) | ||||||
Telefonica Deutschland Holding AG | (4,070 | ) | 1,507 | |||||||
Volkswagen AG | (120 | ) | 161 | |||||||
Vonovia SE | (988 | ) | (222 | ) | ||||||
|
| |||||||||
1,825 | ||||||||||
|
| |||||||||
Greece | ||||||||||
Diana Shipping, Inc. | (1,103 | ) | (563 | ) | ||||||
|
| |||||||||
Hong Kong | ||||||||||
China Traditional Chinese Medicine Co. Ltd. | (48,000 | ) | 439 | |||||||
Esprit Holdings Ltd. | (26,700 | ) | 291 | |||||||
Genting Hong Kong Ltd. | (24,200 | ) | 69 | |||||||
Kerry Logistics Network Ltd. | (10,000 | ) | 131 | |||||||
Kingston Financial Group Ltd. | (34,138 | ) | 123 | |||||||
KuangChi Science Ltd. | (53,000 | ) | (672 | ) | ||||||
MTR Corp. Ltd. | (5,500 | ) | (32 | ) | ||||||
Shangri-La Asia Ltd. | (20,000 | ) | (993 | ) | ||||||
Sun Hung Kai Properties Ltd. | (1,009 | ) | 156 | |||||||
|
| |||||||||
(488 | ) | |||||||||
|
| |||||||||
Indonesia | ||||||||||
Global Mediacom Tbk. PT | (30,700 | ) | (86 | ) | ||||||
|
| |||||||||
Ireland | ||||||||||
iShares Core FTSE 100 UCITS Fund | (3,046 | ) | 155 | |||||||
Medtronic plc | (763 | ) | (328 | ) | ||||||
Perrigo Co. plc | (603 | ) | 1,737 | |||||||
Shire plc | (179 | ) | (691 | ) | ||||||
XL Group plc | (2,299 | ) | 7,334 | |||||||
|
| |||||||||
8,207 | ||||||||||
|
| |||||||||
Israel | ||||||||||
Delek Group Ltd. | (15 | ) | 48 | |||||||
Gazit-Globe Ltd. | (2,299 | ) | 531 | |||||||
Israel Chemicals Ltd. | (4,993 | ) | 53 | |||||||
Melisron Ltd. | (79 | ) | 70 | |||||||
Mizrahi Tefahot Bank Ltd. | (148 | ) | 28 | |||||||
SodaStream International Ltd. | (1,703 | ) | 306 | |||||||
|
| |||||||||
1,036 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
52
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Italy | ||||||||||
Morgan Stanley | Banco Popolare SC | (2,102 | ) | $ | (287 | ) | ||||
(Short Positions — Continued) | Brunello Cucinelli SpA | (1,200 | ) | 213 | ||||||
Fincantieri SpA | (27,701 | ) | (159 | ) | ||||||
Finmeccanica SpA | (2,950 | ) | 438 | |||||||
Prada SpA | (7,200 | ) | (666 | ) | ||||||
Telecom Italia SpA | (24,189 | ) | (557 | ) | ||||||
Unione di Banche Italiane SpA | (750 | ) | 1 | |||||||
Yoox Net-A-Porter Group SpA | (871 | ) | (367 | ) | ||||||
|
| |||||||||
(1,384 | ) | |||||||||
|
| |||||||||
Japan | ||||||||||
ABC-Mart, Inc. | (358 | ) | (351 | ) | ||||||
Activia Properties, Inc. | (7 | ) | 59 | |||||||
Ai Holdings Corp. | (900 | ) | (81 | ) | ||||||
Aiful Corp. | (6,200 | ) | 1,338 | |||||||
Autobacs Seven Co. Ltd. | (200 | ) | (16 | ) | ||||||
Bank of Kyoto Ltd. (The) | (2,546 | ) | 2,017 | |||||||
Bic Camera, Inc. | (2,300 | ) | 569 | |||||||
Calbee, Inc. | (100 | ) | (125 | ) | ||||||
Chiba Bank Ltd. (The) | (4,538 | ) | 2,650 | |||||||
Chugoku Bank Ltd. (The) | (500 | ) | 546 | |||||||
Citizen Holdings Co. Ltd. | (1,000 | ) | 372 | |||||||
COLOPL, Inc. | (900 | ) | 2,163 | |||||||
COOKPAD, Inc. | (1,800 | ) | 1,437 | |||||||
Daiwa Office Investment Corp. | (6 | ) | 172 | |||||||
Dentsu, Inc. | (600 | ) | 1,804 | |||||||
Disco Corp. | (279 | ) | 1,489 | |||||||
Fast Retailing Co. Ltd. | (74 | ) | 1,288 | |||||||
GLP J-Reit | (3 | ) | (77 | ) | ||||||
GMO Payment Gateway, Inc. | (300 | ) | 355 | |||||||
Gunma Bank Ltd. (The) | (837 | ) | 443 | |||||||
Hamamatsu Photonics KK | (800 | ) | 700 | |||||||
Hoshizaki Electric Co. Ltd. | (300 | ) | 649 | |||||||
Hulic Reit, Inc. | (2 | ) | 70 | |||||||
Invincible Investment Corp. | (44 | ) | (490 | ) | ||||||
Itochu Techno-Solutions Corp. | (100 | ) | 17 | |||||||
Iyo Bank Ltd. (The) | (700 | ) | 461 | |||||||
Japan Hotel REIT Investment Corp. | (50 | ) | 780 | |||||||
Japan Post Holdings Co. Ltd. | (900 | ) | 782 | |||||||
Japan Prime Realty Investment Corp. | (1 | ) | 36 | |||||||
Kyushu Electric Power Co., Inc. | (2,100 | ) | 68 | |||||||
Kyushu Financial Group, Inc. | (4,400 | ) | 2,249 | |||||||
M3, Inc. | (900 | ) | (1,044 | ) | ||||||
Mixi, Inc. | (638 | ) | 1,061 |
See Accompanying Notes to the Consolidated Financial Statements.
53
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Japan | ||||||||||
Morgan Stanley | Mizuho Financial Group, Inc. | (15,400 | ) | $ | 2,293 | |||||
(Short Positions — Continued) | Mori Hills REIT Investment Corp. | (26 | ) | (250 | ) | |||||
NGK Spark Plug Co. Ltd. | (1,000 | ) | 1,105 | |||||||
Nidec Corp. | (300 | ) | (754 | ) | ||||||
Nihon M&A Center, Inc. | (500 | ) | 729 | |||||||
Nippon Paint Holdings Co. Ltd. | (900 | ) | 545 | |||||||
Nomura Research Institute Ltd. | (910 | ) | 1,176 | |||||||
Oriental Land Co. Ltd. | (300 | ) | 315 | |||||||
Orix JREIT, Inc. | (20 | ) | (172 | ) | ||||||
Ryohin Keikaku Co. Ltd. | (100 | ) | 295 | |||||||
Sanrio Co. Ltd. | (300 | ) | 138 | |||||||
Shimano, Inc. | (150 | ) | 1,601 | |||||||
SK Kaken Co. Ltd. | (293 | ) | (981 | ) | ||||||
SoftBank Group Corp. | (373 | ) | 1,116 | |||||||
Sohgo Security Services Co. Ltd. | (100 | ) | 54 | |||||||
Square Enix Holdings Co. Ltd. | (1,000 | ) | 848 | |||||||
Sumitomo Mitsui Trust Holdings, Inc. | (7,455 | ) | 2,789 | |||||||
Trusco Nakayama Corp. | (700 | ) | (51 | ) | ||||||
Valor Holdings Co. Ltd. | (100 | ) | 31 | |||||||
Yahoo Japan Corp. | (3,600 | ) | 413 | |||||||
|
| |||||||||
32,631 | ||||||||||
|
| |||||||||
Jersey | ||||||||||
Randgold Resources Ltd. | (273 | ) | (1,950 | ) | ||||||
|
| |||||||||
Luxembourg | ||||||||||
B&M European Value Retail SA | (5,875 | ) | 687 | |||||||
|
| |||||||||
Malaysia | ||||||||||
Bumi Armada Bhd. | (52,100 | ) | (166 | ) | ||||||
Felda Global Ventures Holdings Bhd. | (27,400 | ) | 111 | |||||||
|
| |||||||||
(55 | ) | |||||||||
|
| |||||||||
Mexico | ||||||||||
Fresnillo plc | (569 | ) | (400 | ) | ||||||
|
| |||||||||
Netherlands | ||||||||||
Cimpress NV | (739 | ) | 5,868 | |||||||
Gemalto NV | (366 | ) | 574 | |||||||
ING Groep NV | (1,905 | ) | 357 | |||||||
NXP SemiConductors NV | (2,205 | ) | (8,582 | ) | ||||||
Steinhoff International Holdings NV | (507 | ) | (75 | ) | ||||||
|
| |||||||||
(1,858 | ) | |||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
54
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
New Zealand | ||||||||||
Morgan Stanley | a2 Milk Co. Ltd. | (2,409 | ) | $ | 24 | |||||
(Short Positions — Continued) | Fletcher Building Ltd. | (4,556 | ) | (890 | ) | |||||
Mainfreight Ltd. | (272 | ) | (92 | ) | ||||||
Meridian Energy Ltd. | (16,343 | ) | (1,300 | ) | ||||||
Metlifecare Ltd. | (4,929 | ) | (248 | ) | ||||||
New Zealand Refining Co. Ltd. (The) | (8,525 | ) | (203 | ) | ||||||
Port of Tauranga Ltd. | (1,854 | ) | (597 | ) | ||||||
Precinct Properties New Zealand Ltd. | (3,473 | ) | (116 | ) | ||||||
Warehouse Group Ltd. (The) | (14,890 | ) | (203 | ) | ||||||
Xero Ltd. | (1,940 | ) | (242 | ) | ||||||
|
| |||||||||
(3,867 | ) | |||||||||
|
| |||||||||
Norway | ||||||||||
Det Norske Oljeselskap ASA | (3,230 | ) | (1,214 | ) | ||||||
DNO ASA | (25,490 | ) | (2,518 | ) | ||||||
Hoegh LNG Holdings Ltd. | (1,964 | ) | 7 | |||||||
Marine Harvest ASA | (1,607 | ) | (214 | ) | ||||||
Schibsted ASA | (1,692 | ) | (324 | ) | ||||||
Wilh Wilhelmsen Holding ASA | (861 | ) | (32 | ) | ||||||
|
| |||||||||
(4,295 | ) | |||||||||
|
| |||||||||
Panama | ||||||||||
Copa Holdings SA | (867 | ) | 2,913 | |||||||
|
| |||||||||
Peru | ||||||||||
Southern Copper Corp. | (3,456 | ) | 726 | |||||||
|
| |||||||||
Portugal | ||||||||||
Banco Comercial Portugues SA | (198,575 | ) | (445 | ) | ||||||
|
| |||||||||
Singapore | ||||||||||
Broadcom Ltd. | (1,185 | ) | 12,157 | |||||||
City Developments Ltd. | (2,600 | ) | 518 | |||||||
Golden Agri-Resources Ltd. | (64,000 | ) | 190 | |||||||
Jardine Cycle & Carriage Ltd. | (700 | ) | 2,032 | |||||||
Keppel Corp. Ltd. | (4,400 | ) | 320 | |||||||
OUE Ltd. | (15,600 | ) | 94 | |||||||
Sembcorp Industries Ltd. | (9,300 | ) | 5 | |||||||
Sembcorp Marine Ltd. | (13,000 | ) | (144 | ) | ||||||
SIA Engineering Co. Ltd. | (11,300 | ) | (228 | ) | ||||||
Suntec Real Estate Investment Trust | (2,400 | ) | (19 | ) | ||||||
United Industrial Corp. Ltd. | (6,700 | ) | 146 | |||||||
UOL Group Ltd. | (5,500 | ) | (21 | ) | ||||||
Venture Corp. Ltd. | (4,400 | ) | (246 | ) | ||||||
Wheelock Properties Singapore Ltd. | (12,900 | ) | — | |||||||
|
| |||||||||
14,804 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
55
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
South Africa | ||||||||||
Morgan Stanley | Barloworld Ltd. | (2,093 | ) | $ | 96 | |||||
(Short Positions — Continued) | Fortress, Income Fund Ltd. | (9,980 | ) | (44 | ) | |||||
|
| |||||||||
52 | ||||||||||
|
| |||||||||
South Korea | ||||||||||
Daewoo Engineering & Construction Co. Ltd. | (440 | ) | 30 | |||||||
Doosan Corp. | (142 | ) | 71 | |||||||
Paradise Co. Ltd. | (817 | ) | (288 | ) | ||||||
|
| |||||||||
(187 | ) | |||||||||
|
| |||||||||
Spain | ||||||||||
Distribuidora Internacional de Alimentacion SA | (1,749 | ) | 137 | |||||||
EDP Renovaveis SA | (3,115 | ) | (294 | ) | ||||||
|
| |||||||||
(157 | ) | |||||||||
|
| |||||||||
Sweden | ||||||||||
Autoliv, Inc. | (785 | ) | (6,344 | ) | ||||||
Capio AB | (848 | ) | (57 | ) | ||||||
Elekta AB | (2,429 | ) | 189 | |||||||
Fingerprint Cards AB | (353 | ) | 776 | |||||||
Getinge AB | (1,009 | ) | 105 | |||||||
Hoist Finance AB | (915 | ) | (408 | ) | ||||||
ICA Gruppen AB | (812 | ) | 198 | |||||||
Melker Schorling AB | (489 | ) | (323 | ) | ||||||
Recipharm AB | (461 | ) | 654 | |||||||
Saab AB | (1,127 | ) | (437 | ) | ||||||
SAS AB | (4,797 | ) | 137 | |||||||
SKF AB | (1,184 | ) | (614 | ) | ||||||
Swedish Orphan Biovitrum AB | (1,778 | ) | (19 | ) | ||||||
Thule Group AB (The) | (1,969 | ) | (1,147 | ) | ||||||
Volvo AB | (4,644 | ) | 1,101 | |||||||
|
| |||||||||
(6,189 | ) | |||||||||
|
| |||||||||
Switzerland | ||||||||||
Aryzta AG | (531 | ) | 306 | |||||||
Barry Callebaut AG | (21 | ) | (32 | ) | ||||||
Chocoladefabriken Lindt & Spruengli AG | (3 | ) | 120 | |||||||
Dufry AG | (182 | ) | (176 | ) | ||||||
Sulzer AG | (92 | ) | (53 | ) | ||||||
|
| |||||||||
165 | ||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
56
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
Taiwan | ||||||||||
Morgan Stanley | Acer, Inc. | (7,000 | ) | $ | 104 | |||||
(Short Positions — Continued) | Hiwin Technologies Corp. | (477 | ) | 128 | ||||||
Radiant Opto-Electronics Corp. | (5,000 | ) | 756 | |||||||
Simplo Technology Co. Ltd. | (1,000 | ) | 99 | |||||||
|
| |||||||||
1,087 | ||||||||||
|
| |||||||||
United Kingdom | ||||||||||
Admiral Group plc | (988 | ) | (224 | ) | ||||||
Amec Foster Wheeler plc | (4,487 | ) | 328 | |||||||
Aviva plc | (3,784 | ) | 82 | |||||||
BTG plc | (2,727 | ) | 420 | |||||||
Capital & Counties Properties plc | (4,847 | ) | (107 | ) | ||||||
CNH Industrial NV | (3,272 | ) | (916 | ) | ||||||
Drax Group plc | (3,986 | ) | 497 | |||||||
G4S plc | (8,424 | ) | 822 | |||||||
ICAP plc | (4,538 | ) | 818 | |||||||
J Sainsbury plc | (7,795 | ) | (84 | ) | ||||||
John Wood Group plc | (2,397 | ) | (376 | ) | ||||||
Johnson Matthey plc | (578 | ) | (29 | ) | ||||||
Lloyds Banking Group plc | (24,712 | ) | 622 | |||||||
Millennium & Copthorne Hotels plc | (2,371 | ) | 694 | |||||||
Ocado Group plc | (4,553 | ) | 1,570 | |||||||
Pearson plc | (1,749 | ) | (155 | ) | ||||||
Pennon Group plc | (2,344 | ) | (187 | ) | ||||||
RPC Group plc | (2,235 | ) | 30 | |||||||
RSA Insurance Group plc | (3,554 | ) | 27 | |||||||
Saga plc | (8,266 | ) | (81 | ) | ||||||
Spectris plc | (1,001 | ) | 709 | |||||||
Sports Direct International plc | (1,766 | ) | 497 | |||||||
Tesco plc | (8,882 | ) | 240 | |||||||
Travis Perkins plc | (922 | ) | 374 | |||||||
Unilever NV | (682 | ) | 523 | |||||||
Weir Group plc (The) | (578 | ) | (692 | ) | ||||||
|
| |||||||||
5,402 | ||||||||||
|
| |||||||||
United States | ||||||||||
3D Systems Corp. | (1,971 | ) | 611 | |||||||
Abbott Laboratories | (580 | ) | 1,119 | |||||||
Acadia Healthcare Co., Inc. | (1,492 | ) | 298 | |||||||
ACADIA Pharmaceuticals, Inc. | (1,154 | ) | 369 | |||||||
Albemarle Corp. | (1,732 | ) | 2,771 | |||||||
Alliant Energy Corp. | (590 | ) | (1,214 | ) | ||||||
Altria Group Inc | (3,091 | ) | (4,756 | ) | ||||||
Amdocs Ltd. | (1,419 | ) | 43 |
See Accompanying Notes to the Consolidated Financial Statements.
57
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | AMERCO | (94 | ) | $ | 12 | |||||
(Short Positions — Continued) | American Homes 4 Rent | (5,454 | ) | 109 | ||||||
American International Group, Inc. | (1,028 | ) | 818 | |||||||
ANSYS, Inc. | (1,002 | ) | 601 | |||||||
Antero Resources Corp. | (3,528 | ) | 1,976 | |||||||
AO Smith Corp. | (1,239 | ) | (656 | ) | ||||||
Assurant, Inc. | (1,093 | ) | (5,749 | ) | ||||||
athenahealth, Inc. | (712 | ) | 4,969 | |||||||
AutoZone, Inc. | (114 | ) | 1,546 | |||||||
Bank of the Ozarks, Inc. | (2,091 | ) | 3,137 | |||||||
Becton Dickinson and Co. | (606 | ) | (1,036 | ) | ||||||
Bio-Techne Corp. | (1,063 | ) | 542 | |||||||
BlackRock, Inc. | (848 | ) | (14,891 | ) | ||||||
BOK Financial Corp. | (1,455 | ) | 2,299 | |||||||
Bristol-Myers Squibb Co. | (1,256 | ) | (1,658 | ) | ||||||
Brookdale Senior Living, Inc. | (5,827 | ) | 2,797 | |||||||
Brunswick Corp. | (2,773 | ) | (1,886 | ) | ||||||
Buckle, Inc. (The) | (430 | ) | 1,075 | |||||||
Cabela’s, Inc. | (1,820 | ) | 437 | |||||||
CarMax, Inc. | (1,516 | ) | 3,820 | |||||||
Caterpillar, Inc. | (1,871 | ) | (5,183 | ) | ||||||
CDK Global, Inc. | (1,776 | ) | (195 | ) | ||||||
Charles Schwab Corp. (The) | (2,647 | ) | 3,838 | |||||||
Charter Communications, Inc. | (107 | ) | (232 | ) | ||||||
Coca-Cola Co. (The) | (3,300 | ) | 4,621 | |||||||
Comfort Systems USA, Inc. | (1,748 | ) | 3,216 | |||||||
CommScope Holding Co., Inc. | (2,092 | ) | (7,385 | ) | ||||||
Concho Resources, Inc. | (168 | ) | 469 | |||||||
Continental Resources, Inc. | (1,208 | ) | 2,319 | |||||||
Costco Wholesale Corp. | (543 | ) | 2,183 | |||||||
CSX Corp. | (3,359 | ) | 1,276 | |||||||
Dave & Buster’s Entertainment, Inc. | (3,162 | ) | 980 | |||||||
Deere & Co. | (1,095 | ) | (1,413 | ) | ||||||
Demandware, Inc. | (1,206 | ) | (1,230 | ) | ||||||
Diamondback Energy, Inc. | (1,259 | ) | (88 | ) | ||||||
Dick’s Sporting Goods, Inc. | (1,031 | ) | (1,759 | ) | ||||||
Direxion Daily Gold Miners Index Bear 3X Shares | (17,648 | ) | 10,942 | |||||||
Direxion Daily Gold Miners Index Bull 3X Shares | (371 | ) | (12,451 | ) | ||||||
Dollar General Corp. | (1,181 | ) | 461 | |||||||
Dollar Tree, Inc. | (1,278 | ) | 2,991 | |||||||
Donaldson Co., Inc. | (2,477 | ) | 1,263 |
See Accompanying Notes to the Consolidated Financial Statements.
58
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Dunkin’ Brands Group, Inc. | (3,854 | ) | $ | (19 | ) | ||||
(Short Positions — Continued) | Eaton Vance Corp. | (2,455 | ) | 2,639 | ||||||
Edison International | (1,407 | ) | (2,645 | ) | ||||||
EPR Properties | (1,460 | ) | (817 | ) | ||||||
FactSet Research Systems, Inc. | (919 | ) | 1,667 | |||||||
Fastenal Co. | (2,390 | ) | (1,458 | ) | ||||||
FMC Corp. | (2,189 | ) | 21 | |||||||
Foot Locker, Inc. | (1,447 | ) | 2,388 | |||||||
Gentherm, Inc. | (5,181 | ) | 12,383 | |||||||
Gogo, Inc. | (2,874 | ) | 805 | |||||||
Guidewire Software, Inc. | (925 | ) | 352 | |||||||
Hain Celestial Group, Inc. (The) | (2,100 | ) | 2,163 | |||||||
Halliburton Co. | (630 | ) | (687 | ) | ||||||
HCP, Inc. | (2,571 | ) | 1,723 | |||||||
Helmerich & Payne, Inc. | (698 | ) | (2,143 | ) | ||||||
Hexcel Corp. | (2,199 | ) | 1,100 | |||||||
Intel Corp. | (4,311 | ) | 7,415 | |||||||
International Business Machines Corp. | (469 | ) | 1,473 | |||||||
iShares EURO STOXX 50 UCITS Fund DE | (4,085 | ) | 2,071 | |||||||
iShares MSCI Sweden Fund | (131 | ) | 33 | |||||||
Jack Henry & Associates, Inc. | (1,001 | ) | 1,201 | |||||||
JM Smucker Co. (The) | (727 | ) | 240 | |||||||
Juno Therapeutics, Inc. | (1,846 | ) | 1,717 | |||||||
Kansas City Southern | (956 | ) | 2,170 | |||||||
Kilroy Realty Corp. | (1,148 | ) | 207 | |||||||
Kraft Heinz Co. (The) | (1,198 | ) | 755 | |||||||
Kroger Co. (The) | (5,049 | ) | 13,329 | |||||||
L-3 Communications Holdings, Inc. | (803 | ) | (5,388 | ) | ||||||
Lam Research Corp. | (417 | ) | 1,605 | |||||||
Lear Corp. | (1,973 | ) | (23,362 | ) | ||||||
LendingClub Corp. | (11,428 | ) | (4,343 | ) | ||||||
Liberty Broadband Corp. | (961 | ) | 567 | |||||||
Lions Gate Entertainment Corp. | (2,609 | ) | (5,427 | ) | ||||||
Louisiana-Pacific Corp. | (5,333 | ) | (533 | ) | ||||||
LPL Financial Holdings, Inc. | (2,257 | ) | 1,783 | |||||||
M&T Bank Corp. | (230 | ) | 301 | |||||||
Medical Properties Trust, Inc. | (4,973 | ) | 696 | |||||||
Memorial Resource Development Corp. | (2,433 | ) | 584 | |||||||
Mercury General Corp. | (1,777 | ) | 1,599 | |||||||
Netflix, Inc. | (804 | ) | 11,513 | |||||||
New York Community Bancorp, Inc. | (4,701 | ) | 1,833 | |||||||
NewMarket Corp. | (240 | ) | (110 | ) | ||||||
Noble Energy, Inc. | (1,409 | ) | 535 |
See Accompanying Notes to the Consolidated Financial Statements.
59
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Olin Corp. | (4,130 | ) | $ | 124 | |||||
(Short Positions — Continued) | Omega Healthcare Investors, Inc. | (2,487 | ) | 1,866 | ||||||
Pioneer Natural Resources Co. | (531 | ) | (393 | ) | ||||||
ProAssurance Corp. | (1,922 | ) | 1,422 | |||||||
Proofpoint, Inc. | (1,099 | ) | (626 | ) | ||||||
Public Service Enterprise Group, Inc. | (1,719 | ) | (1,152 | ) | ||||||
Puma Biotechnology, Inc. | (615 | ) | 966 | |||||||
Qorvo, Inc. | (2,258 | ) | 2,868 | |||||||
Range Resources Corp. | (1,119 | ) | (4,901 | ) | ||||||
Reynolds American, Inc. | (2,233 | ) | (2,880 | ) | ||||||
Royal Gold, Inc. | (837 | ) | (4,369 | ) | ||||||
SCANA Corp. | (1,331 | ) | (2,928 | ) | ||||||
Senior Housing Properties Trust | (6,072 | ) | (1,154 | ) | ||||||
Simon Property Group, Inc. | (1,162 | ) | 8,701 | |||||||
SL Green Realty Corp. | (716 | ) | 1,081 | |||||||
Sotheby’s | (1,515 | ) | 1,106 | |||||||
SPDR S&P500 Fund Trust | (3,850 | ) | 9,185 | |||||||
Sprouts Farmers Market, Inc. | (3,976 | ) | 914 | |||||||
SS&C Technologies Holdings, Inc. | (1,179 | ) | 224 | |||||||
Stryker Corp. | (936 | ) | 468 | |||||||
T Rowe Price Group, Inc. | (1,272 | ) | (2,875 | ) | ||||||
TD Ameritrade Holding Corp. | (2,500 | ) | 4,950 | |||||||
Tempur Sealy International, Inc. | (1,626 | ) | 16 | |||||||
Teradyne, Inc. | (4,727 | ) | 8,556 | |||||||
Tesla Motors, Inc. | (600 | ) | 6,337 | |||||||
Tesoro Corp. | (1,624 | ) | 6,723 | |||||||
Texas Capital Bancshares, Inc. | (2,320 | ) | (22,085 | ) | ||||||
Texas Roadhouse, Inc. | (4,323 | ) | 14,179 | |||||||
Torchmark Corp. | (1,200 | ) | (864 | ) | ||||||
TransDigm Group, Inc. | (386 | ) | 1,170 | |||||||
Tyson Foods, Inc. | (1,805 | ) | 3,520 | |||||||
Ulta Salon Cosmetics & Fragrance, Inc. | (746 | ) | (11,309 | ) | ||||||
Under Armour, Inc. | (2,941 | ) | 8,609 | |||||||
Union Pacific Corp. | (1,026 | ) | 1,570 | |||||||
United Bankshares, Inc. | (2,342 | ) | (445 | ) | ||||||
Valero Energy Corp. | (2,193 | ) | 9,693 | |||||||
Vector Group Ltd. | (3,774 | ) | (1,245 | ) | ||||||
VF Corp. | (1,447 | ) | 1,476 | |||||||
Visa, Inc. | (1,213 | ) | 1,565 | |||||||
Vista Outdoor, Inc. | (1,103 | ) | 816 | |||||||
Wal-Mart Stores, Inc. | (1,422 | ) | 3,455 | |||||||
Walt Disney Co. (The) | (690 | ) | 1,125 | |||||||
Westar Energy, Inc. | (1,781 | ) | (1,852 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
60
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Contracts for Differences (Continued)
Counterparty | Reference Entity | Shares | Unrealized | |||||||
United States | ||||||||||
Morgan Stanley | Western Digital Corp. | (43 | ) | $ | 158 | |||||
(Short Positions — Continued) | Western Union Co. (The) | (8,511 | ) | (5,192 | ) | |||||
Woodward, Inc. | (931 | ) | 652 | |||||||
WP Carey, Inc. | (1,392 | ) | 1,517 | |||||||
WW Grainger, Inc. | (506 | ) | (1,650 | ) | ||||||
Wynn Resorts Ltd. | (588 | ) | 800 | |||||||
Zebra Technologies Corp. | (1,536 | ) | 2,365 | |||||||
Zillow Group, Inc. | (3,333 | ) | 2,700 | |||||||
|
| |||||||||
77,019 | ||||||||||
|
| |||||||||
Total Short Positions of Contracts for Differences | 86,098 | |||||||||
|
| |||||||||
Total Long and Short Positions of Contracts for Differences | (49,249 | ) | ||||||||
|
| |||||||||
Net other receivables/(payables) | (216,134 | ) | ||||||||
|
| |||||||||
Total Contracts for Differences, at value | $ | (265,383 | ) | |||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
61
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Forward Foreign Currency Contracts
Over the Counter
Buy Currency vs. | Counterparty | Local Contract Buy Amount | Local Contract Sell Amount | USD Buy Value | USD Sell Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
CHF vs. USD, expiring 5/6/2016 | BNP Paribas SA | 168,394 | 175,558 | $ | 175,561 | $ | 175,558 | $ | 3 | |||||||||||||
CHF vs. USD, expiring 5/6/2016-6/7/2016 | Goldman Sachs & Co. | 141,533 | 147,375 | 147,601 | 147,375 | 226 | ||||||||||||||||
CHF vs. USD, expiring 6/15/2016 | JPMorgan Chase Bank | 71,423 | 74,626 | 74,596 | 74,626 | (30) | ||||||||||||||||
DKK vs. EUR, expiring 6/7/2016 | State Street Bank & Trust | 191,463 | 25,724 | 29,489 | 29,487 | 2 | ||||||||||||||||
DKK vs. USD, expiring 5/9/2016 | BNP Paribas SA | 167,275 | 25,526 | 25,740 | 25,526 | 214 | ||||||||||||||||
DKK vs. USD, expiring 5/9/2016 | Goldman Sachs & Co. | 1,508,265 | 230,620 | 232,091 | 230,620 | 1,471 | ||||||||||||||||
EUR vs. CHF, expiring 5/6/2016 | HSBC Bank plc | 64,197 | 70,098 | 73,515 | 73,081 | 434 | ||||||||||||||||
EUR vs. GBP, expiring 5/6/2016 | State Street Bank & Trust | 146,112 | 115,111 | 167,319 | 168,196 | (877) | ||||||||||||||||
EUR vs. USD, expiring 5/6/2016 | Deutsche Bank AG | 53,395 | 60,113 | 61,146 | 60,113 | 1,033 | ||||||||||||||||
EUR vs. USD, expiring 5/6/2016 | Goldman Sachs & Co. | 584,017 | 664,218 | 668,786 | 664,218 | 4,568 | ||||||||||||||||
EUR vs. USD, expiring 6/15/2016 | JPMorgan Chase Bank | 95,895 | 109,034 | 109,953 | 109,034 | 919 | ||||||||||||||||
EUR vs. USD, expiring 5/6/2016 | Royal Bank of Canada | 122,037 | 138,956 | 139,750 | 138,956 | 794 | ||||||||||||||||
EUR vs. USD, expiring 6/7/2016 | State Street Bank & Trust | 26,509 | 29,959 | 30,386 | 29,959 | 427 | ||||||||||||||||
GBP vs. EUR, expiring 5/6/2016 | Royal Bank of Canada | 38,307 | 48,876 | 55,972 | 55,970 | 2 | ||||||||||||||||
GBP vs. USD, expiring 5/6/2016 | HSBC Bank plc | 1,841,979 | 2,638,219 | 2,691,428 | 2,638,219 | 53,209 | ||||||||||||||||
GBP vs. USD, expiring 5/6/2016 | Royal Bank of Canada | 56,521 | 81,400 | 82,586 | 81,400 | 1,186 | ||||||||||||||||
GBP vs. USD, expiring 5/6/2016 | State Street Bank & Trust | 38,462 | 54,759 | 56,199 | 54,759 | 1,440 | ||||||||||||||||
NOK vs. USD, expiring 5/6/2016 | Goldman Sachs & Co. | 246,932 | 30,032 | 30,667 | 30,032 | 635 | ||||||||||||||||
NOK vs. USD, expiring 5/6/2016 | HSBC Bank plc | 684,394 | 84,553 | 84,997 | 84,553 | 444 | ||||||||||||||||
SEK vs. USD, expiring 5/6/2016 | BNP Paribas SA | 1,064,948 | 131,455 | 132,627 | 131,455 | 1,172 | ||||||||||||||||
SEK vs. USD, expiring 6/7/2016 | Deutsche Bank AG | 396,774 | 48,962 | 49,472 | 48,962 | 510 | ||||||||||||||||
SEK vs. USD, expiring 6/7/2016 | UBS AG | 1,451,813 | 180,570 | 181,020 | 180,570 | 450 | ||||||||||||||||
USD vs. CHF, expiring 5/6/2016 | Goldman Sachs & Co. | 90,131 | 87,591 | 90,131 | 91,319 | (1,188) |
See Accompanying Notes to the Consolidated Financial Statements.
62
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Forward Foreign Currency Contracts (Continued)
Buy Currency vs. | Counterparty | Local Contract Buy Amount | Local Contract Sell Amount | USD Buy Value | USD Sell Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||
USD vs. CHF, expiring 6/15/2016 | JPMorgan Chase Bank | 31,010 | 29,568 | $ | 31,010 | $ | 30,882 | $ | 128 | |||||||||||||||
USD vs. CHF, expiring 6/15/2016 | JPMorgan Chase Bank | 885,379 | 870,415 | 885,379 | 909,089 | (23,710 | ) | |||||||||||||||||
USD vs. CHF, expiring 6/7/2016 | Royal Bank of Canada | 42,153 | 40,909 | 42,153 | 42,709 | (556 | ) | |||||||||||||||||
USD vs. CHF, expiring 5/6/2016 | State Street Bank & Trust | 126,298 | 122,123 | 126,298 | 127,321 | (1,023 | ) | |||||||||||||||||
USD vs. DKK, expiring 5/9/2016 | BNP Paribas SA | 256,367 | 1,675,541 | 256,367 | 257,831 | (1,464 | ) | |||||||||||||||||
USD vs. DKK, expiring 6/7/2016 | Goldman Sachs & Co. | 230,809 | 1,508,265 | 230,809 | 232,300 | (1,491 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016 | BNP Paribas SA | 10,326,726 | 9,057,975 | 10,326,726 | 10,372,708 | (45,982 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016 | Deutsche Bank AG | 81,614 | 72,372 | 81,614 | 82,876 | (1,262 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016-6/7/2016 | Goldman Sachs & Co. | 196,122 | 172,382 | 196,122 | 197,470 | (1,348 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016-6/7/2016 | HSBC Bank plc | 249,604 | 218,620 | 249,604 | 250,472 | (868 | ) | |||||||||||||||||
USD vs. EUR, expiring 6/15/2016 | JPMorgan Chase Bank | 1,354,160 | 1,213,135 | 1,354,160 | 1,390,974 | (36,814 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016-6/7/2016 | State Street Bank & Trust | 472,883 | 417,308 | 472,883 | 477,923 | (5,040 | ) | |||||||||||||||||
USD vs. EUR, expiring 6/7/2016 | The Toronto-Dominion Bank | 118,348 | 104,091 | 118,348 | 119,317 | (969 | ) | |||||||||||||||||
USD vs. EUR, expiring 5/6/2016 | UBS AG | 48,110 | 42,100 | 48,110 | 48,211 | (101 | ) | |||||||||||||||||
USD vs. GBP, expiring 6/15/2016 | JPMorgan Chase Bank | 54,114 | 38,020 | 54,114 | 55,560 | (1,446 | ) | |||||||||||||||||
USD vs. JPY, expiring 6/15/2016 | JPMorgan Chase Bank | 2,915 | 330,000 | 2,915 | 3,105 | (190 | ) | |||||||||||||||||
USD vs. NOK, expiring 5/6/2016 | BNP Paribas SA | 46,728 | 386,067 | 46,728 | 47,948 | (1,220 | ) | |||||||||||||||||
USD vs. NOK, expiring 5/6/2016 | Goldman Sachs & Co. | 66,737 | 545,259 | 66,737 | 67,718 | (981 | ) | |||||||||||||||||
USD vs. NOK, expiring 6/7/2016 | HSBC Bank plc | 84,539 | 684,394 | 84,539 | 84,985 | (446 | ) | |||||||||||||||||
USD vs. SEK, expiring 6/7/2016 | BNP Paribas SA | 60,215 | 483,442 | 60,215 | 60,278 | (63 | ) | |||||||||||||||||
USD vs. SEK, expiring 5/6/2016 | UBS AG | 132,369 | 1,064,948 | 132,369 | 132,628 | (259 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | (58,061 | ) | ||||||||||||||||||||||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
63
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
APRIL 30, 2016 (Unaudited)
Currency Abbreviations:
AUD | — | Australian Dollar | ||||
BRL | — | Brazilian Real | ||||
CAD | — | Canadian Dollar | ||||
CHF | — | Swiss Franc | ||||
DKK | — | Danish Krone | ||||
EUR | — | Euro | ||||
GBP | — | British Pound | ||||
HKD | — | Hong Kong Dollar | ||||
JPY | — | Japanese Yen | ||||
KRW | — | Korea Republic Won | ||||
NOK | — | Norwegian Krone | ||||
SEK | — | Swedish Krona | ||||
USD | — | United States Dollar | ||||
ZAR | — | South African Rand |
Options written
Options written through the period ended April 30, 2016 were as follows:
Number of Contracts | Premiums Received | |||||||
Options outstanding – November 1, 2015 | 6 | $ | 2,577 | |||||
Options written | 149 | 28,589 | ||||||
Options terminated in closing purchase transactions | (74 | ) | (25,836 | ) | ||||
Options expired | (6 | ) | (2,577 | ) | ||||
|
|
|
| |||||
Options outstanding – April 30, 2016 | 75 | $ | 2,753 | |||||
|
|
|
|
See Accompanying Notes to the Consolidated Financial Statements.
64
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED SCHEDULE OF INVESTMENTS (Concluded)
APRIL 30, 2016 (Unaudited)
Aberdeen Multi-Manager Alternative Strategies Fund II invested, as a percentage of net assets, in the following countries as of April 30, 2016:
Austria | 0.1 | % | ||
Belgium | 1.4 | |||
Bermuda | (0.1 | ) | ||
Canada | 0.3 | |||
China | 0.1 | |||
Denmark | 0.8 | |||
Finland | 0.1 | |||
France | 2.6 | |||
Germany | 2.9 | |||
India | 0.0 | (f) | ||
Ireland | 0.2 | |||
Italy | 0.7 | |||
Luxembourg | 0.3 | |||
Netherlands | 2.4 | |||
Norway | 0.2 | |||
Russia | (0.1 | ) | ||
Singapore | 0.2 | |||
South Africa | 0.1 | |||
Spain | 0.8 | |||
Sweden | 0.3 | |||
Switzerland | 3.7 | |||
United Kingdom | 0.1 | |||
United States | 38.7 | |||
Other Assets Less Liabilities‡ | 44.2 | |||
|
| |||
100.0 | % | |||
|
|
(f) Represents less than 0.05% of net assets. |
‡ Includes any non investments in securities and net other assets (liabilities). |
See Accompanying Notes to the Consolidated Financial Statements.
65
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2016 (Unaudited)
Assets | ||||
Investments in securities, at value (Cost 45,150,868)* | $ | 47,207,561 | ||
Cash | 11,252,691 | |||
Foreign cash (Cost $603,143) | 614,580 | |||
Segregated cash collateral on over the counter swap agreements | 1,980,000 | |||
Segregated cash balance with broker for futures contracts | 2,033,809 | |||
Segregated cash balance with broker for securities sold short | 13,960,032 | |||
Swap agreements, at value | 56,794 | |||
Unrealized appreciation on forward foreign currency contracts | 69,267 | |||
Receivables: | ||||
Securities sold | 4,207,590 | |||
Variation margin on futures contracts | 256,292 | |||
Dividends and interest | 46,221 | |||
Reclaims | 21,912 | |||
Receivable for capital shares issued | 9,335 | |||
Receivable from Adviser | 751,746 | |||
Prepaid expenses | 1,040 | |||
|
| |||
Total Assets | 82,468,870 | |||
|
| |||
Liabilities | ||||
Securities sold short, at value (Proceeds received 13,193,441) | 13,692,800 | |||
Written options, at value (Proceeds received 2,753) | 900 | |||
Swap agreements, at value | 851,628 | |||
Unrealized depreciation on forward foreign currency contracts | 127,328 | |||
Payables: | ||||
Securities purchased | 4,561,585 | |||
Collateral received on securities loaned | 1,932,448 | |||
Capital shares redeemed | 5,165 | |||
Advisory fees (Note 3) | 667,992 | |||
Trustees fees | 6,613 | |||
Distribution fees | 344 | |||
Dividends and interest on securities sold short | 5,474 | |||
Accrued expenses and other liabilities | 527,571 | |||
|
| |||
Total Liabilities | 22,379,848 | |||
|
| |||
Net Assets | $ | 60,089,022 | ||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
66
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (Concluded)
APRIL 30, 2016 (Unaudited)
Net Assets Consist of: | ||||
Paid-in capital | $ | 64,212,147 | ||
Accumulated undistributed net investment income (loss) | (1,331,897 | ) | ||
Accumulated undistributed net realized gain (loss) | (4,007,792 | ) | ||
Net unrealized appreciation (depreciation) on: | ||||
Investments | 2,056,693 | |||
Futures contracts | (6,183 | ) | ||
Written options | 1,853 | |||
Securities sold short | (499,359 | ) | ||
Swap agreements | (794,834 | ) | ||
Translation of assets and liabilities denominated in foreign currencies | 516,455 | |||
Forward foreign currency contracts | (58,061 | ) | ||
|
| |||
Net Assets | $ | 60,089,022 | ||
|
| |||
Net Assets, Class A Shares | $ | 1,550,008 | ||
Net Assets, Class C Shares | $ | 9,810 | ||
Net Assets, Class R Shares | $ | 9,817 | ||
Net Assets, Institutional Class Shares | $ | 58,519,387 | ||
Shares Outstanding, Class A Shares | 164,355 | |||
Shares Outstanding, Class C Shares | 1,040 | |||
Shares Outstanding, Class R Shares | 1,040 | |||
Shares Outstanding, Institutional Class Shares | 6,190,064 | |||
Net Asset Value, Class A Shares | $ | 9.43 | ||
Net Asset Value, Class C Shares (a)^ | $ | 9.43 | ||
Net Asset Value, Class R Shares^ | $ | 9.44 | ||
Net Asset Value, Institutional Class Shares^ | $ | 9.45 | ||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||
Class A Shares | $ | 10.01 | ||
Maximum Sales Charge: | ||||
Class A Shares | 5.75 | % |
* | Includes $1,946,408 of investments in securities on loan. |
(a) | For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. |
^ | The NAV shown above differs from the traded NAV on April 29, 2016 due to financial statement rounding and/or financial statement adjustments. |
See Accompanying Notes to the Consolidated Financial Statements.
67
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2016 (Unaudited)
INVESTMENT INCOME | ||||
Dividend income (net of foreign withholding taxes $13,474) | $ | 476,542 | ||
Interest income | 17,212 | |||
Securities lending income | 24,379 | |||
|
| |||
Total Investment Income | 518,133 | |||
|
| |||
EXPENSES | ||||
Investment management fees (Note 3) | 612,730 | |||
Custody fees | 266,173 | |||
Dividends on securities sold short | 259,705 | |||
Administration fees (Note 6) | 221,290 | |||
Financing fees on securities sold short | 154,406 | |||
Professional fees | 144,208 | |||
Other fees | 58,229 | |||
Transfer agent fees | 47,774 | |||
Printing and Shareholder reports | 27,349 | |||
Trustees fees | 11,613 | |||
Distribution fees — Class A | 2,445 | |||
Distribution fees — Class C | 16 | |||
Distribution fees — Class R | 8 | |||
|
| |||
Total Expenses | 1,805,946 | |||
|
| |||
Less: waivers and/or reimbursements by Adviser (Note 3) | (731,025 | ) | ||
|
| |||
Total Net Expenses | 1,074,921 | |||
|
| |||
Net Investment Income (Loss) | (556,788 | ) | ||
|
| |||
NET REALIZED GAIN (LOSS) ON: | ||||
Investments in securities | (883,533 | ) | ||
Futures contracts | 414,506 | |||
Written options | 3,544 | |||
Securities sold short | 89,092 | |||
Swap agreements | (342,492 | ) | ||
Forward foreign currency exchange contracts | (287,233 | ) | ||
Foreign currency transactions | (3,268 | ) | ||
|
| |||
Net Realized Gain (Loss) | (1,009,384 | ) | ||
|
| |||
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | ||||
Investments in securities | (284,112 | ) | ||
Futures contracts | 556,858 | |||
Written options | (639 | ) | ||
Securities sold short | (102,996 | ) | ||
Swap agreements | (1,183,443 | ) | ||
Forward foreign currency contracts | (337,933 | ) | ||
Translation of assets and liabilities denominated in foreign currencies | 704,690 | |||
|
| |||
Net Change in Unrealized Appreciation (Depreciation) | (647,575 | ) | ||
|
| |||
Net Realized and Change in Unrealized Gain (Loss) | (1,656,959 | ) | ||
|
| |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (2,213,747) | ||
|
|
See Accompanying Notes to the Consolidated Financial Statements.
68
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||
OPERATIONS | ||||||||
Net investment income (loss) | $ | (556,788 | ) | $ | (1,357,761 | ) | ||
Net realized gain (loss) | (1,009,384 | ) | 1,056,855 | |||||
Net change in unrealized appreciation (depreciation) | (647,575 | ) | 1,285,732 | |||||
|
|
|
| |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,213,747 | ) | 984,826 | |||||
|
|
|
| |||||
DISTRIBUTIONS | ||||||||
Class A | ||||||||
Net investment income | (3,920 | ) | — | |||||
Net realized gain | — | (76,202 | ) | |||||
Institutional Class | ||||||||
Net investment income | (306,701 | ) | — | |||||
Net realized gain | — | (2,442,946 | ) | |||||
|
|
|
| |||||
Total Distributions | (310,621 | ) | (2,519,148 | ) | ||||
|
|
|
| |||||
CAPITAL TRANSACTIONS | ||||||||
Class A Shares (a) | ||||||||
Proceeds from shares issued | 137,730 | 2,689,473 | ||||||
Reinvestments | 3,574 | 68,964 | ||||||
Cost of shares redeemed (b) | (742,196 | ) | (2,617,624 | ) | ||||
|
|
|
| |||||
Net Increase (Decrease) from Capital Transactions | (600,892 | ) | 140,813 | |||||
|
|
|
| |||||
Class C Shares | ||||||||
Proceeds from shares issued | 10,000 | — | ||||||
|
|
|
| |||||
Net Increase (Decrease) from Capital Transactions | 10,000 | — | ||||||
|
|
|
| |||||
Class R Shares | ||||||||
Proceeds from shares issued | 10,000 | — | ||||||
|
|
|
| |||||
Net Increase (Decrease) from Capital Transactions | 10,000 | — | ||||||
|
|
|
| |||||
Institutional Class Shares (a) | ||||||||
Proceeds from shares issued | 49,645,782 | 23,411,857 | ||||||
Reinvestments | 259,855 | 2,442,946 | ||||||
Cost of shares redeemed (b) | (56,735,077 | ) | (21,690,410 | ) | ||||
|
|
|
| |||||
Net Increase (Decrease) from Capital Transactions | (6,829,440 | ) | 4,164,393 | |||||
|
|
|
| |||||
Total Increase (Decrease) in Net Assets | (9,934,700 | ) | 2,770,884 | |||||
|
|
|
| |||||
NET ASSETS | ||||||||
Beginning of period | 70,023,722 | 67,252,838 | ||||||
|
|
|
| |||||
End of Period | $ | 60,089,022 | $ | 70,023,722 | ||||
|
|
|
| |||||
Accumulated undistributed net investment income (loss) included in end of period net assets | $ | (1,331,897 | ) | $ | (464,488 | ) |
See Accompanying Notes to the Consolidated Financial Statements.
69
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (Concluded)
Six Months Ended April 30, 2016 (Unaudited) | Year Ended October 31, 2015 | |||||||
SHARE TRANSACTIONS | ||||||||
Class A Shares (a) | ||||||||
Beginning of period | $ | 227,023 | $ | 215,647 | ||||
Shares issued | 14,191 | 270,896 | ||||||
Shares reinvested | 367 | 7,088 | ||||||
Shares redeemed | (77,226 | ) | (266,608 | ) | ||||
|
|
|
| |||||
Shares Outstanding, End of Period | 164,355 | 227,023 | ||||||
|
|
|
| |||||
Class C Shares | ||||||||
Beginning of period | — | — | ||||||
Shares issued | 1,040 | — | ||||||
Shares redeemed | — | — | ||||||
|
|
|
| |||||
Shares Outstanding, End of Period | 1,040 | — | ||||||
|
|
|
| |||||
Class R Shares | ||||||||
Beginning of period | — | — | ||||||
Shares issued | 1,040 | — | ||||||
Shares redeemed | — | — | ||||||
|
|
|
| |||||
Shares Outstanding, End of Period | 1,040 | — | ||||||
|
|
|
| |||||
Institutional Class Shares (a) | ||||||||
Beginning of period | 6,904,648 | 6,480,053 | ||||||
Shares issued | 5,083,801 | 2,377,587 | ||||||
Shares reinvested | 26,652 | 250,558 | ||||||
Shares redeemed | (5,825,037 | ) | (2,203,550 | ) | ||||
|
|
|
| |||||
Shares Outstanding, End of Period | 6,190,064 | 6,904,648 | ||||||
|
|
|
|
(a) | In connection with the reorganization (Note 1), effective February 29, 2016, Advisor Class and Class I shares of the Predecessor Fund were exchanged for Class A shares and Institutional Class shares of the Fund, respectively. |
(b) | Includes redemption fees, if any. |
See Accompanying Notes to the Consolidated Financial Statements.
70
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGH THE PERIOD
PER SHARE OPERATING PERFORMANCE | ||||||||||||||||||||||||||||
Investment Operations | Distributions | |||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)(1) | Net realized and unrealized gain (loss) | Total investment operations | Net investment income | Net realized gains | Total Distributions | ||||||||||||||||||||||
Class A Shares(5) | ||||||||||||||||||||||||||||
For the six months ended 04/30/16 (Unaudited) | $ 9.78 | $ (0.09) | $ (0.24) | $ (0.33) | $ (0.02) | $ — | $ (0.02) | |||||||||||||||||||||
Year ended October 31, 2015 | 10.03 | (0.20 | ) | 0.32 | 0.12 | — | (0.37 | ) | (0.37 | ) | ||||||||||||||||||
For the period 02/03/14* — 10/31/14 | 10.00 | (0.11 | ) | 0.14 | 0.03 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
For the period 02/29/16(6) — 04/30/16 (Unaudited) | 9.62 | (0.04 | ) | (0.15 | ) | (0.19 | ) | — | — | — | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
For the period 02/29/16(6) — 04/30/16 (Unaudited) | 9.62 | (0.03 | ) | (0.15 | ) | (0.18 | ) | — | — | — | ||||||||||||||||||
Institutional Class Shares(5) | ||||||||||||||||||||||||||||
For the six months ended 04/30/16 (Unaudited) | 9.82 | (0.08 | ) | (0.25 | ) | (0.33 | ) | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||
Year ended October 31, 2015 | 10.04 | (0.18 | ) | 0.33 | 0.15 | — | (0.37 | ) | (0.37 | ) | ||||||||||||||||||
For the period 02/03/14* — 10/31/14 | 10.00 | (0.10 | ) | 0.14 | 0.04 | — | — | — |
* | Commencement of investment operations. |
(1) | Net investment income (loss) per share is based on average shares outstanding. |
(2) | Annualized for periods less than one year. |
(3) | Not annualized for periods less than one year. |
(4) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at net asset value. |
(5) | In connection with the reorganization (Note 1), effective February 29, 2016, Advisor Class and Class I shares of the Predecessor Fund were exchanged for Class A shares and Institutional Class shares of the Fund, respectively. |
(6) | Commencement of offering of class of shares. |
See Accompanying Notes to the Consolidated Financial Statements.
71
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||
Ratio to Average Net Assets of(2) | Total Return(3) | |||||||||||||
Net asset | Expenses, | Expenses, | Expenses, | Net | Net Asset Value(4) | Portfolio turnover | Ending net assets | |||||||
$ 9.43 | 5.70% | 3.49% | 2.24% | (1.92)% | (3.41)% | 250% | $ 1,550 | |||||||
9.78 | 6.04% | 4.06% | 2.24% | (2.04)% | 1.20% | 501% | 2,220 | |||||||
10.03 | 6.65% | 3.88% | 2.24% | (1.51)% | 0.30% | 251% | 2,162 | |||||||
9.43 | 6.45% | 4.24% | 2.99% | (2.68)% | (1.98)% | 250% | 10 | |||||||
9.44 | 5.95% | 3.74% | 2.49% | (2.17)% | (1.87)% | 250% | 10 | |||||||
9.45 | 5.45% | 3.24% | 1.99% | (1.68)% | (3.33)% | 250% | 58,519 | |||||||
9.82 | 5.79% | 3.81% | 1.99% | (1.79)% | 1.51% | 501% | 67,803 | |||||||
10.04 | 6.40% | 3.63% | 1.99% | (1.26)% | 0.40% | 251% | 65,091 |
See Accompanying Notes to the Consolidated Financial Statements.
72
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
APRIL 30, 2016 (Unaudited)
1. | Organization |
Aberdeen Funds (the “Trust”) was organized as a statutory trust under the laws of the state of Delaware by a Certificate of Trust filed on September 27, 2007 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of April 30, 2016, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. As of April 30, 2016, the Trust operated twenty-five (25) separate series, or mutual funds, each with its own investment objective(s) and strategies. This report contains the financial statements and financial highlights of the Aberdeen Multi-Manager Alternative Strategies Fund II (the “Fund”). The Fund acquired the assets and liabilities of the Arden Alternative Strategies II (the “Predecessor Fund”), a series of the Arden Investment Series Trust, effective February 29, 2016. The Predecessor Fund is considered the accounting and performance survivor for purposes of the reorganization. The Fund and the Predecessor Fund have substantially similar investment objectives and strategies. The Predecessor Fund commenced operations on February 3, 2014. In connection with the reorganization, Advisor Class and Class I shares of the Predecessor Fund were exchanged for Class A and Institutional Class shares of the Fund, respectively. The Fund also offers Class C and Class R Shares.
The Fund’s investment objective is to achieve capital appreciation. In pursuing the objective, Aberdeen Asset Management Inc. (“Aberdeen” or the “Adviser”) seeks to enable the Fund to achieve a low beta to the major equity and fixed income markets, through the allocation of the assets of the Fund among a number of sub-advisers (the “Sub-Advisers”) that employ a variety of alternative investment strategies.
Basis for Consolidation:
AAS II Offshore Fund, Ltd. (the “Subsidiary II”), a Cayman Islands exempted company, was incorporated on April 17, 2012 and is a wholly-owned subsidiary of the Fund. The Subsidiary II acts as an investment vehicle for the Fund to enable the Fund to gain exposure to certain types of commodity-linked derivative instruments. The Fund was transferred shares of Subsidiary II from the Predecessor Fund effective February 29, 2016, making the Fund the sole shareholder of the Subsidiary II. It is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary II. Under the Memorandum of Association of the Subsidiary II, shares issued by the Subsidiary II confer upon a shareholder the right to vote at general meetings of the Subsidiary II and certain rights in connection with any winding-up or repayment of capital, as well as the right to participate in the profits or assets of the Subsidiary II. The Fund’s policy is to consolidate entities where it is the sole or principal owner of the equity of such entity. All inter-fund balances and transactions have been eliminated in consolidation. The accompanying financial statements reflect the financial position and the results of operations on a consolidated basis for the Fund and the Subsidiary II.
2. | Summary of Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Fund in the preparation of its consolidated financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund applies the accounting and reporting guidance for investment companies issued in Accounting Standards Codification (“ASC”) Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”). The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could materially differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars.
Investment Valuation:
The net asset value (“NAV”) of the Fund’s shares are calculated as of the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) on each day that the NYSE is
73
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
open for business (the “Valuation Time”). In the event the NYSE experiences a non-routine closure, the Fund may, but generally does not expect to, calculate NAV. To calculate the NAV, the Fund’s assets are valued and totaled, liabilities are valued and subtracted, and the balance is divided by the number of shares outstanding.
Investments in securities listed on the Nasdaq National Market System (“NASDAQ”) are valued at the NASDAQ Official Closing Price (“NOCP”). If no NOCP is available, the security will be valued at the last sale price on the NASDAQ prior to the calculation of the NAV of the Fund. If no sale is shown on the NASDAQ, the mean price will be used. If no sale is shown and no bid price is available, the price will be deemed “stale” and the value will be determined in accordance with the Trust’s Fair Valuation Procedures (“Fair Valuation Procedures”) set forth herein. U.S. exchange traded securities, other than NASDAQ securities, are valued at their last composite sale prices as reported on the exchanges where such securities are traded. If no sales of such securities are reported on a particular day, the securities will be valued based upon their composite bid prices for securities held long, or their composite ask prices for securities held short, as reported by such exchanges. Securities traded on a foreign securities exchange will be valued at their last sale prices on the exchange where such securities are primarily traded, or in the absence of a reported sale on a particular day, at their bid prices, in the case of securities held long, or ask prices, in the case of securities held short, as reported by such exchange. Other securities for which market quotations are readily available will be valued at their bid prices in the case of securities held long, or ask prices in the case of securities held short, as obtained from one or more broker-dealers making markets for such securities. Exchange-traded U.S. options are valued at the bid prices at the close of the options market in which the options trade. An exchange-traded U.S. option for which there is no bid price is valued at the last sale price. If no bid or sale price is available, the prior day’s price will be used. If it is determined that the prior day’s price no longer reflects the fair value of the option, the value will be determined by the Fund’s Pricing Committee (“Pricing Committee”) in accordance with the Fair Valuation Procedures. Non-U.S. exchange traded and index options are valued at settlement price for long positions or last sale for short positions. For short positions, if last sale is not available, the ask price is used. Futures contracts are valued using the last sales prices as reported by the exchange with the highest reported daily volume for such futures contracts or, in the absence of any sales on a particular day, at their bid prices as reported by the exchange with the highest volume on the last day a trade was reported.
Debt securities will generally be valued by a third party pricing service which employs different techniques to determine valuations for normal institutional size trading units. The valuation techniques may take into account various factors, including, without limitation: bids, yield spreads, and/or other market data and specific security characteristics (e.g., credit quality, maturity and coupon rate). The reasonableness of valuations provided by any third party pricing service will be reviewed periodically by the Board of Trustees (the “Board”). Debt securities with remaining maturities of 60 days or less will be valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost, which approximates market value, so long as such valuation is determined by the Board to represent fair value.
Investments in exchange traded funds (“ETFs”) are valued at their last sale prices as reported on the exchange determined to be the primary market for such investments. If no sales of those investments are reported on a particular day, the investments will be determined by the managers of the ETFs (“Managers”) in accordance with the ETFs’ valuation policies and as reported by the Managers. As a general matter, the fair value of the Fund’s interest in an ETF will represent the amount that the Fund could reasonably expect to receive from the ETF if the Fund’s interest were redeemed, which could differ from the ETF’s market price. The Fund may not be able to verify valuation information given to the Fund or publicly disseminated by the Managers. In the unlikely event that an ETF does not report
74
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
a value to the Fund on a timely basis, the Fund would determine the fair value of its interest in that ETF based on all relevant circumstances which may include the most recent value reported by the ETF, as well as any other relevant information available at the time the Fund values its assets.
Investments in master limited partnerships are valued at closing price on an exchange where such investments are traded. Mutual funds are valued at the daily closing NAV each business day. Other securities, not referenced above, for which market quotations are readily available will be valued at their bid/ask prices as obtained from one or more broker-dealers making markets for those securities.
Forward foreign currency contracts are valued at the current day’s interpolated foreign exchange rates, which will be supplied by a third party pricing service. Swap agreements are valued utilizing quotes received daily by the Fund from third party pricing services or through broker-dealers, and are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.
In certain instances, such as when market quotations are not readily available, securities and other assets will be valued at fair value (“Fair Value Asset”) in accordance with the Trust’s pricing policy and procedures approved by the Board. The Board has delegated to the Pricing Committee the day-to-day responsibilities for determining the values of the Fund’s investments as of any day on which the Fund’s NAVs are determined. When determining the price for Fair Value Assets, the Pricing Committee seeks to determine the price that the Fund might reasonably expect to receive from the current sale of that asset or settlement of that liability in an arm’s-length transaction. Fair value determinations shall be based upon various factors that the Adviser and/or Sub-Advisers deem relevant and consistent with the principles of fair value measurement. These factors include but are not limited to: (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) observations or market activity by the customary market participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as interest rates, volatilities, credit risks, and other news events. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Pricing Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Fund’s pricing vendors, a regular review of key inputs and assumptions, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is reviewed by the Board.
The Fund may also fair value securities that trade in a foreign market if events or market fluctuations that appear likely to affect the value of those securities occur between the time the foreign market closes and the time the NYSE closes. Generally, significant events may include: (1) corporate actions or announcements that affect a single issuer, (2) governmental actions that affect securities in one sector, country or region, (3) natural disasters or armed conflicts that affect a country or region, or (4) significant domestic or foreign market fluctuations. To address this issue, the Board has approved procedures that implement fair valuations of foreign equity securities (excluding Canadian, Mexican and American Depositary Receipts (“ADR”) securities priced on a domestic exchange) as a result of movements in U.S. markets (following the close of various foreign markets) that, on any given day, exceed certain triggers or thresholds approved by the Board. One or more third-party fair valuation pricing services has been retained to assist in the Trust’s fair valuation process for foreign securities. The Fund will also fair value foreign securities on days when a particular foreign securities principal exchange is closed, but the Fund is open. The effect of using fair value pricing is that a portfolio security will be priced based on the subjective judgment of the Pricing Committee, operating under procedures approved by the Board (including using an adjustment factor provided by a third-party pricing service), instead of being priced using valuations from an independent pricing service. Fair value pricing can help to protect the Fund
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
by reducing arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing will completely prevent dilution of the Fund’s NAV by such traders. At April 30, 2016, no such adjustments had been made.
All assets and liabilities initially expressed in foreign currencies will be converted into U.S. dollars using foreign exchange rates provided by a third party pricing service. On occasion, the values of securities and exchange rates may be affected by significant events occurring between the time that determination of such values or exchange rates are made and the time that the net asset value is determined. When such significant events materially affect the values of securities held by the Fund or its liabilities, these securities and liabilities may be valued at fair value as determined in good faith by, or under the supervision of, the Board. For purposes of calculating the U.S. dollar equivalent value of a non U.S. dollar denominated obligations, foreign currency amounts are translated into U.S. dollars on the following basis: (1) market value of investment securities and other assets and liabilities - at the exchange rates prevailing as of the close of business on the NYSE; and (2) purchases and sales of investment securities and income and expenses - at the rates of exchange prevailing on the respective dates of such transactions. Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate 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 investments held or sold during the period. Such gains and losses are included with net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized gains or losses on disposition of foreign currencies and currency gains and losses realized between trade and settlement dates on investment transactions. Net unrealized appreciation or depreciation of assets and liabilities, other than investments, attributable to foreign currency fluctuations are recorded as unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies in the Consolidated Statement of Operations.
Various inputs are used in determining the fair value of the Fund’s investments. These inputs are summarized in three levels listed below:
● | Level 1 — Quoted prices in active markets for identical assets or liabilities on the measurement date. |
● | Level 2 — Other significant observable inputs (including quoted prices for similar assets or liabilities, interest rates, prepayment speeds, credit risk, etc.). |
● | Level 3 — Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. For example, short-term debt securities may be valued at amortized cost which approximates fair market value. Generally, amortized cost approximates the current fair market value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
Financial instruments are generally valued by independent pricing service providers that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. Depending on the type of financial instrument, the independent pricing service providers’ internal pricing models may use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Financial instruments that use similar valuation techniques and observable inputs as described above and have an appropriate level of market activity are categorized as Level 2 of the fair value hierarchy, otherwise a Level 3 fair
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
value classification is appropriate. Over-the-counter financial derivative instruments derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These instruments are normally valued on the basis of broker-dealer quotations or independent pricing service providers. Depending on the product and the terms of the transaction, the value of the financial derivative instruments can be estimated by an independent pricing service provider using a series of techniques including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, credit risks/spreads, interest rates, yield curves, default and exchange rates. Derivative contracts that use valuation techniques and observable inputs as described above and have an appropriate level of market activity are categorized as Level 2 of the fair value hierarchy, otherwise a Level 3 fair value classification is appropriate.
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation or market activity; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). The valuation of financial instruments held by the Fund is obtained from an independent pricing service and categorized as Level 2 based on the use of other significant observable market based inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.).
The following is a summary of the valuations at April 30, 2016 for the Fund based upon the three levels previously defined. The Fund discloses significant transfers between levels based on valuations at the end of the reporting period. All transfers in and out of the levels during the period are assumed to be transferred on the last day of the period at their fair value. Transfers between Level 1 and Level 2 are included in a summary of the valuations below. For the six months ended April 30, 2016, there were no Level 3 investments held.
Assets | Level 1 | Level 2 | Total | |||||||||
Investments: | ||||||||||||
Common Stocks1 | $ | 38,689,298 | $ | 1,752,035 | 2,3 | $ | 40,441,333 | |||||
Options Purchased | 316,895 | — | 316,895 | |||||||||
Exchange Traded Funds | 289,366 | — | 289,366 | |||||||||
Convertible Preferred Stocks1 | 195,569 | — | 195,569 | |||||||||
Preferred Stocks1 | 141,026 | 41,119 | 182,145 | |||||||||
Short-Term Investments | — | 5,782,253 | 5,782,253 | |||||||||
|
|
|
|
|
| |||||||
Total Investments | $ | 39,632,154 | $ | 7,575,407 | $ | 47,207,561 | ||||||
|
|
|
|
|
| |||||||
Derivatives: | ||||||||||||
Futures Contracts4 | $ | 175,191 | $ | — | $ | 175,191 | ||||||
Total Return Swap Contracts | — | 56,794 | 56,794 | |||||||||
Forward Foreign Currency Contracts | — | 69,267 | 69,267 | |||||||||
|
|
|
|
|
| |||||||
Total Derivatives | $ | 175,191 | $ | 126,061 | $ | 301,252 | ||||||
|
|
|
|
|
|
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Liabilities | Level 1 | Level 2 | Total | |||||||||
Investments: | ||||||||||||
Common Stocks1 | $ | 7,213,910 | $ | — | $ | 7,213,910 | ||||||
Exchange Traded Funds | 6,478,890 | — | 6,478,890 | |||||||||
|
|
|
|
|
| |||||||
Total Investments | $ | 13,692,800 | $ | — | $ | 13,692,800 | ||||||
|
|
|
|
|
| |||||||
Derivatives: | ||||||||||||
Options Written | $ | 900 | $ | — | $ | 900 | ||||||
Futures Contracts4 | 181,374 | — | 181,374 | |||||||||
Total Return Swap Contracts | — | 174,156 | 174,156 | |||||||||
Contracts for Differences | — | 677,472 | 677,472 | |||||||||
Forward Foreign Currency Contracts | — | 127,328 | 127,328 | |||||||||
|
|
|
|
|
| |||||||
Total Derivatives | $ | 182,274 | $ | 978,956 | $ | 1,161,230 | ||||||
|
|
|
|
|
|
1 | See Consolidated Schedule of Investments for industry breakdown. |
2 | Investment securities with a market value of $1,357,907.40, which represented 2.26% of the net assets of the fund, transferred from Level 1 to Level 2 since the prior fiscal year-end, primarily due to significant market movements following the close of local trading. |
3 | Level 2 includes investment securities with an aggregate value of $3,102,854, which represented 5.16% of the net assets of the Fund, that were fair valued under guidelines adopted by authority of the Fund’s board of directors/trustees as a result of significant market movements following the close of local trading. |
4 | Futures contracts are reported in the table above using the cumulative appreciation/depreciation as detailed in the futures contracts Consolidated Schedule of Investments, but only the variation margin to be received, if any, is reported within the Consolidated Statement of Assets and Liabilities. |
Foreign Securities and Forward Foreign Currency Contracts:
The Fund may invest in securities of foreign issuers and in depositary receipts, such as ADRs that represent indirect interests in securities of foreign issuers. Foreign securities in which the Fund may invest may be listed on foreign securities exchanges or traded in foreign over-the-counter markets. The Fund uses forward currency exchange contracts (“forward contracts”) to hedge risks associated with foreign currency fluctuations and to implement its non-U.S. rate and currency positions. Forward contracts are transactions involving the Fund’s obligation to purchase or sell a specific currency at a future date at a specified price. Forward contracts may be used by the Fund for hedging purposes to protect against uncertainty in the level of future foreign currency exchange rates, such as when the Fund anticipates purchasing or selling a foreign security. This technique would allow the Fund to “lock in” the U.S. dollar price of the security. Forward contracts may also be used to attempt to protect the value of the Fund’s existing holdings of foreign securities. There may be, however, imperfect correlation between the Fund’s foreign securities holdings and the forward contracts entered into with respect to those holdings. Forward contracts may also be used for non-hedging purposes to pursue the Fund’s investment objective, such as when a Sub-Adviser anticipates that particular foreign currencies will appreciate or depreciate in value, even though securities denominated in those currencies are not then held in the Fund’s investment portfolio. There are no requirements that the Fund hedges all or any portion of its exposure to foreign currency risks.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Non-Deliverable Bond Forward Contracts:
The Fund may invest in non-deliverable bond forward contracts. A non-deliverable bond forward is a short term forward contract between two parties to buy or sell a bond denominated in a non-deliverable foreign currency at a specified future time and price. Non-deliverable bond forwards are marked to market daily using market quotations. Unrealized gains or losses on non-deliverable bond forwards are recorded by the Fund on a daily basis, and realized gains or losses are recorded on the termination date of a contract. The use of these instruments involves market risk, currency risk and counterparty risk. These instruments may be illiquid, and changes in their values may not directly correlate with changes in the value of the underlying bonds. These risks may decrease the effectiveness of the Fund’s strategies and result in losses. The Fund must set aside liquid assets or engage in other appropriate measures to cover their obligations under these contracts. For the period ended April 30, 2016, the Fund did not hold any Non-Deliverable Bond Forward Contracts.
Securities Sold Short:
The Fund engages in short sales, which are sales of securities which have been borrowed from a broker-dealer on the expectation that the market price will decline. In return for borrowing securities from a broker-dealer, the Fund pays a financing fee to the broker- dealer for the duration of the transaction. Such financing fees are reflected as expenses in the Fund’s Consolidated Statement of Operations. If the price of the securities decreases, the Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, the Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size. The Fund pledges securities and/or other assets to the lender as collateral. The Fund is required to segregate an amount of cash, cash equivalents or other appropriate liquid marketable securities with the custodian in at least an amount equal to the current market value of the securities sold short (less any additional collateral held by the lender). Cash deposited with a broker for collateral for securities sold short is recorded as an asset on the Consolidated Statement of Assets and Liabilities and securities segregated as collateral are denoted in the Consolidated Schedule of Investments. The Fund is contractually responsible to the lender for any dividends payable and interest accrued on securities while those securities are in a short position. These dividends and interest are recorded as an expense of the Fund.
Warrants and Rights:
The Fund may purchase warrants and rights. Warrants are derivative instruments that permit, but do not obligate, the holder to subscribe for other securities or commodities. Rights are similar to warrants, but normally have a shorter duration and are offered or distributed to shareholders of a company. Warrants and rights do not carry with them the right to dividends or voting rights with respect to the securities that they entitle the holder to purchase, and they do not represent any rights in the assets of the issuer. As a result, warrants and rights may be considered more speculative than certain other types of equity-like securities. In addition, the values of warrants and rights do not necessarily change with the values of the underlying securities or commodities and these instruments cease to have value if they are not exercised prior to their expiration dates.
Inflation Linked Bonds:
The Fund may invest in inflation linked bonds. Inflation linked bonds are debt securities whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities’ principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer’s country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity. For the period ended April 30, 2016, the Fund did not hold any Inflation Linked Bonds.
Options:
The Fund uses options to manage exposure to security prices and interest rates, to efficiently adjust exposure to all or a part of a target market, to adjust credit exposure, to enhance income or as a cash management tool.
● | Options Written: The Fund may write (sell) put and call options on stock indices listed on the national securities exchanges or traded in the over-the-counter market, in order to gain exposure to or protect against changes in the markets or in an attempt to enhance income or gains. When the Fund writes a call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s Consolidated Statement of Assets and Liabilities as a premium and as an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. If an option which the Fund has written either expires on its stipulated expiration date or the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the cost of a closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security or derivative instrument, and the liability related to such option is extinguished. If a call option which the Fund has written is exercised, the Fund recognizes a realized gain or loss (long-term or short-term, depending on the holding period of the underlying security) from the sale of the underlying security or derivative instrument and the proceeds from the sale are increased by the premium originally received. If a put option which the Fund has written is exercised, the amount of the premium originally received reduces the cost of the security or derivative instrument which the Fund purchases upon exercise of the option. In writing an option, the Fund bears the risk of an unfavorable change in the price of the derivative instrument, security, index or currency underlying the written option. Exercise of a written option could result in the Fund selling or buying a derivative instrument, security, index or currency at a price different from current market value. |
Options written, where the Fund would be obligated to purchase or sell certain securities at specified prices (i.e., the options are exercised by the counterparties) constitute a financial guarantee. The maximum payout for written put options is limited to the number of put option contracts written and the related strike prices, whereas the maximum payout for written call options provides no limitations and is contingent upon the number of contracts written and the market price of the underlying instrument at the date of a payout. At April 30, 2016, the Fund had maximum payout amount of approximately $495,000, relating to written put option contracts, which expire within two months of April 30, 2016. Maximum payout amounts could be offset by the subsequent sale, if any, of assets obtained via the execution of a payout event.
The fair values of written put option contracts as of April 30, 2016 for the Fund is $900, and is included as a liability on Options written and swaptions, at value on the Consolidated Statement of Assets and Liabilities.
● | Purchased Options: The Fund may purchase put and call options on stock indices listed on the national securities exchanges or traded in the over-the-counter market, in order to gain exposure to or protect against changes in the markets or in an attempt to enhance income or gains. Purchasing |
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Fund pays a premium which is included in its Consolidated Statement of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying derivative instrument, security, index or currency transaction to determine the realized gain or loss.
● | Swap Options (Swaptions): The Fund may enter into swaptions similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaption is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement at any time before the expiration of the option. For the period ended April 30, 2016, the Fund did not hold any swaptions. |
Futures Contracts:
The Fund uses treasury, index, commodity or other financial futures contracts to manage and hedge interest rate risk associated with portfolio investments, to lengthen or shorten the duration of the overall investment portfolio or to adjust sensitivity to changes in interest rates. The Fund also uses futures contracts to gain exposure to, or hedge against, changes in the value of equities and commodities, maintain liquidity, and minimize transaction costs. Futures contracts are agreements between the Fund and counterparty to buy or sell a financial instrument at a specified price and at a specified date. The Fund may enter into futures contracts in U.S. domestic markets or on exchanges located outside the United States. Foreign markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges are principal markets so that no common clearing facility exists and an investor may look only to the broker for performance of the contract. In addition, any profits the Fund might realize in trading could be eliminated by adverse changes in the exchange rate, and the Fund could incur losses as a result of those changes. Transactions on foreign exchanges may include commodities, which are traded on domestic and foreign exchanges. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission.
Upon entering into a futures contract, the Fund is required to deliver to a broker an amount of cash and/or securities 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 on a periodic basis, depending on the daily fluctuations in the value of the underlying futures contracts. Such variation margin is recorded for financial statement purposes as an unrealized gain or loss on futures on the Consolidated Statement of Assets and Liabilities until the futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures on the Consolidated Statement of Operations.
Swap Agreements:
The Fund is allowed to engage in various swap transactions, including interest rate, credit default, index, and total return swaps, to manage market, credit, interest rate (e.g., duration, yield curve), currency, and inflation risks within its portfolio. The Fund also uses swaps as alternatives to direct investments. Swap agreements include credit default, interest rate, equity total return swaps and contracts for differences. The Fund entered into these transactions to preserve a return or spread on a particular investment or to hedge a portion of the portfolio’s duration, to protect against any increase in the price
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
of securities the Fund anticipates purchasing at a later date, to gain exposure to certain markets in the most economical way possible or in an attempt to enhance income or gains.
● | Credit Default Swap Contracts –The Fund enters into credit default swap contracts to provide a measure of protection against risk of loss following a default, or other credit event in respect to issuers within an underlying index or a single issuer, or to gain credit exposure to an underlying index or issuer. In a credit default swap contract, the protection buyer typically makes an upfront payment and a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. Any upfront payments paid are recoded as cost and any upfront premium received are recorded as proceeds and are shown as net upfront premium paid and net upfront premium received, respectively, in the Consolidated Statements of Assets and Liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the Consolidated Statement of Operations. Periodic payments received or paid by the Fund are recorded in its Consolidated Statement of Operations as realized gains or losses, respectively. The credit default contracts are marked to market daily based upon quotations from a third-party pricing service or broker-dealers and the change, if any, is recorded as an unrealized gain or loss in the Consolidated Statement of Operations. Upon the occurrence of a credit event, the difference between the notional amount and market value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss. |
In addition to bearing the risk that the credit event will occur, the Fund could be exposed to market risk due to unfavorable changes in interest rates in the price of the underlying security or index or the possibility that the Fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the Fund may enter into offsetting credit default contracts, which would mitigate its risk of loss. Risks of loss may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index/obligation, or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index/obligation.
The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding at the balance sheet date, if any, for which the Fund is the seller of protection are disclosed in the Fund’s Consolidated Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective reference obligations, upfront payments received upon entering into the agreement, or the net amount received from the settlement of buy protection credit default swap agreements entered into, if any, by the Fund for the same reference entity or entities. If the Fund is the seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference obligation.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Implied credit spreads are an indication of the seller’s performance risk related to the likelihood of a credit event occurring that would require a seller to make payment to a buyer. Implied credit spreads are used to determine the fair value of swap contracts and reflect the cost of buying/selling protection, which may include upfront payments made to enter into the contract. Therefore, higher credit spreads would indicate a greater likelihood that a seller will be obligated to perform (i.e., make payment) under the swap contract. Increasing values, in absolute terms and relative to notional amounts, are also indicative of greater performance risk. Implied credit spreads for credit default swaps on credit indexes are linked to the weighted average spread across the underlying reference obligations included in a particular index. Implied credit spreads utilized in valuing the Fund’s investments as of the balance sheet date, if any, are disclosed in the Fund’s Consolidated Schedule of Investments when the Fund sold credit protection.
The Fund may enter into derivative contracts that may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. The Adviser is not aware of any additional credit-risk contingent features on derivative contracts held by the Fund. For the period ended April 30, 2016, the Fund did not hold any Credit Default Swap Contracts.
● | Total Return Swap Contracts – The Fund enters into total return swaps to obtain exposure to an investment or market without owning a particular instrument or index or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity). Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons/dividends plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty. Total return swaps on equity index futures are subject to monthly resets. In the normal course of business, the Fund enters into both long and short total return swap contracts. |
● | Contracts for Differences – The Fund enters into contracts for differences (“CFD”) as a way to gain exposure to an underlying security without owning the security. CFDs are generally entered into based on a specific amount of shares of the reference security. CFDs require the Fund to pay/receive an amount equal to the appreciation or depreciation of the security upon the end of the contract based on the number of shares. If the Fund is long the CFD, it will receive payments based on the appreciation of the underlying security at the end of a contractual period. If the underlying asset depreciates, the Fund will make such payments. In the normal course of business, the Fund enters into both long and short CFD contracts. |
● | Interest Rate Swap Contracts – The Fund enters into interest rate swaps as part of its investment strategy. Interest rate swaps generally involve agreements to exchange fixed and floating payment obligations, without the exchange of the underlying notional amounts. Periodic payments received or paid by the Fund are recorded as realized gains or losses. Interest rate swaps are marked to market daily based on quotations as provided by a third-party pricing service or broker-dealers and the change is recorded as unrealized gain or loss. The Fund’s maximum risk of loss from counterparty credit risk in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts’ remaining life, to the extent that amount is positive. Interest rate contracts outstanding, including their respective notional amounts at period end, are listed after the Fund’s Consolidated Schedule of Investments, if applicable. For the period ended April 30, 2016, the Fund did not hold any Interest Rate Swap Contracts. |
83
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
● | Centrally Cleared Swap Contracts – Certain clearing houses currently offer clearing for limited types of derivatives transactions, such as interest rate swaps and credit default swaps. In a cleared derivative transaction, the Fund typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Fund’s exposure to the credit risk of its original counterparty. Upon entering into a cleared derivative transaction, the Fund is required to deliver to a clearing house an amount of cash and/or securities 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 on a periodic basis, depending on the daily fluctuations in the value of the underlying derivative. The Fund will be required to post specified levels of margin with the clearing house or at the instruction of the clearing house; the margin required by a clearing house may be greater than the margin the Fund would be required to post in an uncleared transaction. Only a limited number of transactions are currently eligible for clearing. The valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time realized gains or losses are recorded, which is reflected in the Consolidated Statement of Operations. For the period ended April 30, 2016, the Fund did not hold any Centrally Cleared Swap Contracts. |
The Fund may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master netting agreement (“ISDA Master Agreement”) implemented between the Fund and each of its respective counterparties. An ISDA Master Agreement may contain certain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Certain ISDA Master Agreements, or similar agreements, may allow the Fund to offset certain derivative financial instruments’ between each other and with collateral. At April 30, 2016, the Fund presented its derivative financial instruments gross in its Consolidated Statement of Assets and Liabilities and has a policy not to offset collateral against the fair market value of derivative financial instruments.
Non-centrally cleared swap agreements, CFDs, and forward foreign currency contracts, entered into by the Fund are covered by ISDA Master Agreements, which may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Fund’s Consolidated Schedule of Investments. The aggregate fair value of assets that are already posted as collateral for such instruments at April 30, 2016 are reflected in the Fund’s Consolidated Statement of Assets and Liabilities. If the Fund’s applicable credit-risk related contingent features were triggered as of April 30, 2016, the Fund would be required to post additional collateral or may be required to terminate the contracts and settle any amounts outstanding. For the six months ended April 30, 2016, credit-risk related contingency features were not triggered by the Fund.
84
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
The fair value of derivative instruments reflected in the Consolidated Statement of Assets and Liabilities at April 30, 2016 are as follows:
Assets | ||||||||||||||||
Consolidated Statement of Asset and Liabilities Location | Unrealized Appreciation on Futures Contracts(a) | Swap Agreements at Fair Value | Unrealized Appreciation on Forward Currency Contracts | Purchased Options at Fair Value(b) | ||||||||||||
Equity Risk Exposure | $ | 37,449 | $ | 56,794 | $ | — | $ | 316,895 | ||||||||
Foreign Exchange Rate Risk Exposure | 24,592 | — | 69,297 | — | ||||||||||||
Interest Rate Risk Exposure | 15,483 | — | — | — | ||||||||||||
Commodity Risk Exposure | 97,667 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 175,191 | $ | 56,794 | $ | 69,297 | $ | 316,895 | ||||||||
|
|
|
|
|
|
|
|
Liabilities | ||||||||||||||||
Consolidated Statement of Asset and Liabilities Location | Unrealized Depreciation on Futures Contracts(a) | Swap Agreements at Fair Value | Unrealized Depreciation on Forward Currency Contracts | Options Written at Fair Value | ||||||||||||
Equity Risk Exposure | $ | 78,686 | $ | 851,628 | $ | — | $ | 900 | ||||||||
Foreign Exchange Rate Risk Exposure | 2,890 | — | 127,328 | — | ||||||||||||
Interest Rate Risk Exposure | 43,388 | — | — | — | ||||||||||||
Commodity Risk Exposure | 56,410 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 181,374 | $ | 851,628 | $ | 127,328 | $ | 900 | ||||||||
|
|
|
|
|
|
|
|
(a) | This amount represents the cumulative appreciation/depreciation on futures contracts as reported in the Consolidated Schedule of Investments. Only variation margin for futures contracts is reported in the Consolidated Statement of Assets and Liabilities. |
(b) | Amounts are included within the Investments in securities and/or securities sold short, at Value in the Consolidated Statement of Assets and Liabilities. |
Net Realized Gain (Loss) on Derivatives Recognized as a Result from Operations | ||||||||||||||||||||
Consolidated Statement of Operations Location – Net Realized Gain (Loss) | Futures Contracts | Swap Agreements | Forward Foreign Currency Contracts | Purchased Options(a) | Options Written | |||||||||||||||
Equity Risk Exposure | $ | 29,481 | $ | (342,492 | ) | $ | — | $ | 211,783 | $ | 3,544 | |||||||||
Foreign Exchange Rate Risk Exposure | 26,209 | — | (287,233 | ) | — | — | ||||||||||||||
Interest Rate Risk Exposure | 33,516 | — | — | — | — | |||||||||||||||
Commodity Risk Exposure | 325,300 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 414,506 | $ | (342,492 | ) | $ | (287,233 | ) | $ | 211,783 | $ | 3,544 | ||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Amounts are included in the net realized gain (loss) on Investments in securities and/or securities sold short in the Consolidated Statement of Operations. |
85
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Net Change in Unrealized Appreciation (Depreciation) Recognized as a Result from Operations | ||||||||||||||||||||
Consolidated Statement of Operations Location – Net Change in Unrealized Appreciation (Depreciation) | Futures Contracts | Swap Agreements | Forward Foreign Currency Contracts | Purchased Options(a) | Options Written | |||||||||||||||
Equity Risk Exposure | $ | 506,998 | $ | (1,183,443 | ) | $ | — | $ | (267,137 | ) | $ | (639 | ) | |||||||
Foreign Exchange Rate Risk Exposure | 32,836 | — | (337,933 | ) | — | — | ||||||||||||||
Interest Rate Risk Exposure | (21,652 | ) | — | — | — | — | ||||||||||||||
Commodity Risk Exposure | 38,676 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 556,858 | $ | (1,183,443 | ) | $ | (337,933 | ) | $ | (267,137 | ) | $ | (639 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
(a) | Amounts are included in the net change in unrealized appreciation (depreciation) on Investments in securities and/or securities sold short in the Consolidated Statement of Operations. |
For the six months ended April 30, 2016, the quarterly average absolute values of the derivatives held by the Fund, which represents trading activity for the period then ended, were as follows:
Exchange Traded Options: | ||||||
Equity Risk Exposure | ||||||
Average number of contracts purchased | 1,670 | |||||
Average number of contracts written | 27 | |||||
Futures Contracts: | ||||||
Commodity Risk Exposure | ||||||
Average notional balance long | $ | 1,905,063 | ||||
Average notional balance short | 1,390,201 | |||||
Equity Risk Exposure | ||||||
Average notional balance long | 3,967,573 | |||||
Average notional balance short | 10,567,620 | |||||
Interest Risk Exposure | ||||||
Average notional balance long | 6,486,254 | |||||
Average notional balance short | 2,720,574 | |||||
Foreign Exchange Rate Risk Exposure | ||||||
Average notional balance long | 365,010 | �� | ||||
Average notional balance short | 669,436 | |||||
Total Return Swap Contracts: | ||||||
Equity Risk Exposure | ||||||
Average notional balance long | 174,482 | |||||
Average notional balance short | 935,226 | |||||
Contracts for Differences: | ||||||
Equity Risk Exposure | ||||||
Average notional balance long | 31,494,574 | |||||
Average notional balance short | 32,680,787 | |||||
Forward Foreign Currency Contracts: | ||||||
Foreign Exchange Rate Risk Exposure | ||||||
Average settlement value purchased | 10,481,938 | |||||
Average settlement value sold | 5,232,669 |
86
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Offsetting of Financial and Derivative Assets and Liabilities
Included within the tables are non-centrally cleared swap agreements, contracts for differences, and forward foreign currency contracts (covered under an ISDA Master Agreements) as applicable, as of April 30, 2016. Centrally cleared swap agreements, futures contracts, rights, warrants and exchange traded options are not subject to a master netting arrangement or similar agreement. Also included within the tables below are securities lending (covered under Master Securities Loan Agreement) as of April 30, 2016.
Assets | ||||||||||||||||||||
Gross amounts not offset in the Consolidated Statement of Assets & Liabilities | ||||||||||||||||||||
Gross amounts presented Assets & Liabilities | Financial instruments | Collateral received | Net amount | |||||||||||||||||
Counterparty | ||||||||||||||||||||
BNP Paribas S.A. | $ 1,389 | $ (1,389) | $ — | $ | — | |||||||||||||||
Deutsche Bank AG | 1,543 | (1,262 | ) | — | 281 | |||||||||||||||
Goldman Sachs & Co. | 6,900 | (6,900 | ) | — | — | |||||||||||||||
HSBC Bank plc | 54,087 | (1,314 | ) | — | 52,773 | |||||||||||||||
JPMorgan Chase Bank | 1,047 | (1,047 | ) | — | — | |||||||||||||||
Morgan Stanley | 56,794 | 56,794 | ) | — | — | |||||||||||||||
Royal Bank of Canada | 1,982 | (556 | ) | — | 1,426 | |||||||||||||||
State Street Bank & Trust | 1,869 | (1,869 | ) | — | — | |||||||||||||||
UBS AG | 450 | (360 | ) | — | 90 | |||||||||||||||
Total derivatives subject to a master netting arrangement or similar agreement | $126,061 | $ (71,491) | $ — | $ | 54,570 |
87
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Liabilities | ||||||||||||||||||||
Gross amounts not offset in the Consolidated Statement of Assets & Liabilities | ||||||||||||||||||||
Gross amounts presented Assets & Liabilities | Financial instruments | Collateral posted | Net amount | |||||||||||||||||
Counterparty | ||||||||||||||||||||
Bank of America Corp. | $ (4,165) | $ — | $ 4,165 | $ | — | |||||||||||||||
BNP Paribas S.A. | (48,729 | ) | 1,389 | — | (47,340) | |||||||||||||||
Deutsche Bank AG | (1,262) | 1,262 | — | — | ||||||||||||||||
Goldman Sachs & Co. | (412,932 | ) | 6,900 | — | (406,032 | ) | ||||||||||||||
HSBC Bank plc | (1,314 | ) | 1,314 | — | — | |||||||||||||||
JPMorgan Chase Bank | (62,190 | ) | 1,047 | — | (61,143 | ) | ||||||||||||||
Morgan Stanley | (439,539 | ) | 56,794 | 382,745 | — | |||||||||||||||
Royal Bank of Canada | (556 | ) | 556 | — | — | |||||||||||||||
State Street Bank & Trust | (6,940 | ) | 1,869 | — | (5,071 | ) | ||||||||||||||
The Toronto- Dominion Bank | (969 | ) | — | — | (969 | ) | ||||||||||||||
UBS AG | (360 | ) | 360 | — | — | |||||||||||||||
Total derivatives subject to a master netting arrangement or similar agreement | $ (978,956) | $ 71,491 | $ 386,910 | $ (520,555) |
Securities Lending:
The Fund may lend its portfolio securities to brokers, dealers and financial institutions in an amount not exceeding 33 1/3% of the value of the Fund’s total assets pursuant to Master Securities Loan Agreement. These loans will be secured by collateral designated by the Adviser (consisting of cash and/or liquid securities) maintained in an amount equal to at least 100% of the market value, determined daily, of the loaned securities. The Fund may, subject to certain notice requirements, at any time call the loans and obtain the return of the securities loaned. The Fund will be entitled to the interest and dividends on its loaned securities. These loans are used to leverage the Fund’s assets, i.e., while the Fund continues to receive the income on the loaned securities, it invests the cash collateral received in any securities or instruments consistent with its investment objective and earn returns thereon. The Fund will be required to return the collateral with the interest at a predetermined fixed or floating rate and because its interest obligations and transaction costs may turn out to be greater or less than the return on the Fund’s investments of the collateral, the Fund may lose or gain from engaging in the securities lending transaction. The Fund also continues to receive income on loaned securities while earning returns on the cash amounts reinvested for the purchase of investment in securities. Income from securities lending for the Fund, totaling $24,379, is included in securities lending income in the Fund’s Consolidated Statement of Operations. Interest on the invested cash collateral is included in financing fees on the accompanying Consolidated Statement of Operations. The Fund’s securities lending activities are not subject to any fee splits with a third party. At April 30, 2016, a portion of the cash held as collateral was invested in securities.
88
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
The value of loaned securities and related collateral at April 30, 2016 were as follows:
Market value of securities loaned | Market value of collateral received on securities loaned* | |
$1,946,408 | $1,932,448 |
* | Additional collateral was subsequently received from borrowers in accordance with the Fund’s securities lending standards and guidelines. |
The following table presents the liabilities under the outstanding securities lending transactions as of April 30, 2016, on the basis of the nature, characteristics and risks associated with the investment of the collateral received in securities, in accordance with guidance presented in FASB ASU 2014-11, Balance Sheet (Topic) 860: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (“ASU 2014-11”). As the securities loans are subject to termination by the Fund or the borrower at any time, the remaining contractual maturities of the outstanding securities lending transactions are considered to be overnight and continuous.
Common Stocks (Overnight & continuous) | Total Borrowings | |
$1,932,448 | $1,932,448 |
The securities lending transactions are governed by a Master Securities Loan Agreement with JPMorgan Chase Bank, N.A., which is not considered to be a master netting arrangement. As a result the liabilities associated with the securities lending transactions are not disclosed in Offsetting of Financial and Derivative Assets and Liabilities table of the Notes to the Consolidated Financial Statements.
Securities Traded on To-Be-Announced Basis:
The Fund may from time to time purchase, or sell short, securities on a to-be-announced (“TBA”) basis. In a TBA transaction, the Fund commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until they are delivered to the Fund, normally 15 to 45 days later. Beginning on the date the Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high grade debt obligations are segregated in its records in an amount equal in value to the purchase price of the TBA security. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities. For the period ended April 30, 2016, the Fund did not hold any TBA securities.
Indemnifications:
In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had such claims or losses through April 30, 2016 pursuant to these contracts and expects the risk of loss to be remote.
Cash and Cash Equivalents:
Cash and cash equivalents consist of highly liquid investments, with maturities of three months or less when acquired. The amortized cost method of valuation, which approximates fair market value, generally is used to value cash equivalents.
89
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
2. | Summary of Significant Accounting Policies (Continued) |
Dividends and Capital Gain Distributions:
Dividends from net investment income, if any, are declared and paid annually. The Fund intends to distribute annually any net capital gains. Dividends and distributions will automatically be reinvested in additional shares, unless shareholders have elected to have the distributions paid in cash. There are no sales charges or transaction fees for reinvested dividends and all shares will be purchased at the prevailing NAV. Shareholders will be subject to tax on all dividends and distributions whether paid to them in cash or reinvested in shares.
3. | Agreements and Transactions with Affiliates |
Investment Adviser:
Under the Investment Advisory Agreement with the Trust, the Adviser manages the Fund in accordance with the policies and procedures established by the Board. The Adviser is responsible for all decisions with respect to purchases and sales of portfolio investments. As compensation for its advisory services and assumption of Fund expenses, the Adviser is entitled to an investment management fee from the Fund, computed daily and payable monthly, at an annual rate in accordance with the following schedule: (i) 1.85% of total average annual net assets of the Fund up to and including $1 billion; (ii) 1.65% of total average annual net assets of the Fund in excess of $1 billion and up to and including $2 billion; and (iii) 1.50% of total average annual net assets of the Fund in excess of $2 billion. For the period from February 29, 2016 through April 30, 2016, the Fund incurred fees of $197,081. For the period November 1, 2015 through February 28, 2016, the Predecessor Fund incurred fees of $415,649.
Pursuant to the sub-advisory agreements (“Sub-Advisory Agreements”), the Sub-Advisers have been delegated responsibility for the day-to-day management of the assets of the Fund allocated to such Sub-Advisers. Each Sub-Advisory Agreement provides in substance that the Sub-Advisers will make and implement investment decisions for the Fund in their discretion and will implement investment programs for the Fund’s assets. The Sub-Advisory Agreements provide that the services rendered will be paid for by the Adviser from the investment management fees received by the Adviser. As of March 15, 2016 and March 30, 2016, Santa Fe Partners LLC and CQS (US), LLC, respectively, ceased serving as Sub-Advisers to the Fund. The Fund’s Sub-Advisory Agreements with Santa Fe Partners LLC and CQS (US), LLC were effectively terminated thereafter.
The Trust and Aberdeen have entered into a written contract (“Expense Limitation Agreement”) limiting operating expenses for all classes of the Fund from exceeding 1.99% per annum. This contractual limitation will remain in effect for an indefinite period (i.e., into perpetuity), unless sooner terminated at the sole discretion of the Board of Trustees. This limit excludes certain expenses, taxes (including foreign transaction taxes), expenses associated with investment in other pooled investment vehicles (including exchange traded funds and other affiliated and unaffiliated funds), any fees paid pursuant to a Rule 12b-1 plan (if applicable to the share class), transaction costs and brokerage commissions, costs related to any securities lending program, dividend and interest expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest and extraordinary expenses.
Aberdeen may request and receive reimbursement from the Fund of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement at a later date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Funds was made.
If the Board approves any changes in the waiver terms or limitations, reimbursements are only permitted to the extent that the terms of the Expense Limitation Agreement in effect at the time of the waiver are met at the time that reimbursement is approved. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by Aberdeen is not permitted.
90
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
3. | Agreements and Transactions with Affiliates (Continued) |
For the period November 1, 2015 through February 28, 2016, the Predecessor Fund had substantially the same Expense Limitation Agreement. For the period November 1, 2015 through February 28, 2016, there were $468,021 for Class I and $15,088 for Advisor Class of reimbursed expenses for the Predecessor Fund related to the Expense Limitation Agreement. For the period February 29, 2016 through April 30, 2016, there were $247,916 ($6,961 for Class A, $38 for Class C, $38 for Class R, and $240,879 for Institutional Class) of reimbursed expenses related to the Expense Limitation Agreement for the Fund.
At April 30, 2016, under the Expense Limitation Agreement, the amount that would be recoverable from the Fund is as follows:
Eligible by | Total Eligible for Reimbursement | |||||
2017 | 2018 | 2019 | ||||
$1,119,623 | $1,497,227 | $731,025 | $3,347,875 |
Prior to February 29, 2016, investment advisory services for the Predecessor Fund were provided by Aberdeen Asset Management Inc. pursuant to an interim advisory agreement effective January 1, 2016. Prior to January 1, 2016, the Predecessor Fund was advised by Arden Asset Management LLC. The Predecessor Fund was obligated to pay its predecessor investment advisers a monthly fee based on average daily net assets of the Predecessor Fund. The investment advisory fee rate paid by the Predecessor Fund to its investment advisers is identical to the investment advisory fee rate paid by the Fund to the Adviser.
Distributor and Shareholder Servicing:
The Trust and Aberdeen Fund Distributors, LLC (the “Distributor” or “AFD”) are parties to the current Underwriting Agreement (the “Underwriting Agreement”) whereby the Distributor acts as principal underwriter for the Trust’s shares. The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act with respect to certain classes of shares.
The Plan permits the Fund to compensate AFD, as the Fund’s Distributor, for expenses associated with the distribution of certain classes of shares of the Fund. Although actual distribution expenses may be more or less, under the Plan, the Fund pays the Distributor an annual fee of the following amounts:
Class A Shares | Class C Shares (a) | Class R Shares | ||
0.25% | 1.00% | 0.50% |
(a) 0.25% of which is service fees.
The Adviser or an affiliate of the Adviser may pay additional amounts from its own resources to dealers or other financial intermediaries, for aid in distribution or for aid in providing administrative services to shareholders.
Pursuant to the current Underwriting Agreement, the Distributor will also receive the proceeds of contingent deferred sales charges (“CDSCs”) of 1% imposed on certain redemptions of Class C (and up to 1% for certain Class A) shares.
In addition, the Distributor will re-allow to dealers 5.00% of sales charges on Class A shares of the Fund, which have a maximum front-end sales charge of 5.75% and the Distributor or the Adviser may compensate broker dealers or financial intermediaries from its own resources at the rate of 1.00% on sales of Class C shares of the Fund, which have a maximum CDSC of 1.00% (the CDSC assessed on sales within one year of purchase). For the period from February 29, 2016 to April 30, 2016, AFD retained no commissions from front-end sales charges of Class A shares nor from CDSC fees from Class C (and certain Class A) shares of the Fund.
91
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
3. | Agreements and Transactions with Affiliates (Continued) |
Prior to February 29, 2016, Arden Securities LLC (the “Predecessor Distributor”) served as the Fund’s distributor pursuant to a distribution agreement. The Board had adopted a distribution plan for Advisor Class shares of the Fund in accordance with Rule 12b-1 under the 1940 Act. The distribution plan provided that the Advisor Class shareholders shall pay distribution fees at an annual rate of 0.25% of the average daily net assets of Advisor Class shares. For the period from November 1, 2015 to February 28, 2016, the Predecessor Distributor retained $1,719 in distribution fees for Advisor Class shares.
Sub-Transfer Agent Fees:
The Fund may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Fund, subject to certain limitations approved by the Board. These fees may be in addition to the Rule 12b-1 fees and Administrative Services fees. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.
4. | Federal Income Tax |
The Fund intends to distribute substantially all of its taxable income and to comply with the other requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing substantially all of its net investment income during each calendar year, net realized capital gains and certain other amounts during each calendar year, if any, the Fund intends not to be subject to a federal excise tax.
As of April 30, 2016, management of the Fund has reviewed the open tax period since inception and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the six months ended April 30, 2016, neither the Fund nor the Predecessor Fund incurred any interest or penalties.
The tax character of distributions paid by the Predecessor Fund for the tax years ended October 31, 2015 and October 31, 2014, were as follows:
Year ended October 31, 2015 distributions paid from | Period ended October 31, 2014 distributions paid from(a) | |||||||||
Ordinary income | Long term capital gains | Total distributions | Ordinary income | Long term capital gains | Total distributions | |||||
$2,519,148 | $ — | $2,519,148 | $ — | $ — | $ — |
(a) The Predecessor Fund commenced operations on February 3, 2014.
At October 31, 2015, the components of accumulated earnings (deficit) on a tax basis for the Predecessor Fund were as follows:
Undistributed ordinary income | Undistributed long term capital gains | Accumulated realized capital and other losses | Net unrealized appreciation (depreciation)* | Total accumulated earnings (deficit) | ||||
$185,773 | $ — | $(168,478) | $(1,644,676) | $(1,627,381) |
* | The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is primarily attributable to timing differences in recognizing certain gains and losses on investment transactions, timing and deductibility of certain expenses, and mark to market on Passive Foreign Investment Companies. |
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
4. | Federal Income Tax (Continued) |
At October 31, 2015, the Predecessor Fund had capital loss carryforwards for federal income tax purposes which are not subject to expiration as follows:
Short Term Capital Loss Carryforward | Long Term Capital Loss Carryforward | |
— | $168,478 |
The Fund is permitted to carry forward capital losses incurred for an unlimited period and will retain their character as either short-term or long-term capital losses. It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.
5. | Investment Transactions and Related Income |
Investment transactions are accounted for on trade date for financial reporting purposes. Interest income and expense is recognized on an accrual basis. Bond discounts are accreted and premiums are amortized over the expected life of each applicable security using the yield to maturity method. Dividend income and expense is recorded on the ex-dividend date, or for foreign securities, when the information becomes available to the Fund. Realized gains or losses on sales of investments are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. In calculating the NAV of each class of the Fund, investment income, realized and unrealized gains and losses and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day.
To the extent such information is publicly available, the Fund records distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Fund adjusts the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Fund invests. These foreign taxes, if any, are paid by the Fund and disclosed in the Consolidated Statement of Operations. Foreign taxes payable, if any, are reflected in the Fund’s Consolidated Statement of Assets and Liabilities.
6. | Purchase and Redemption of Shares |
The Fund currently offers Class A, C, R and Institutional Class shares. The Board may establish additional classes of shares of any series, with the differences in classes representing differences as to certain expenses and share distribution arrangements. Shares are fully paid and non-assessable and have no pre-emptive or conversion rights. The Fund’s shares do not charge redemption fees.
For the Fund, the minimum initial investment for Class A and Class C shares is $1,000. Subsequent investments for those classes must be made in amounts of $50 or more. Institutional Class shares of the Fund are only offered to certain eligible investors meeting a minimum initial investment of $1,000,000 (with no minimum subsequent investments). Investors meeting these requirements must fall into one or more of the following categories: (1) funds of funds offered by affiliates of the Fund; (2) retirement plans for which no third-party administrator receives compensation from the Fund; (3) institutional advisory accounts of the Adviser’s affiliates, those accounts which have client relationships with an affiliate of the Adviser, its affiliates and their corporate sponsors, subsidiaries, and related retirement plans; (4) rollover individual retirement accounts from such institutional advisory accounts; (5) a bank, trust company or similar financial institution investing for its own account or for trust accounts for which it has authority to make investment decisions as long as the accounts are not part of a program that
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
6. | Purchase and Redemption of Shares (Continued) |
requires payment of Rule 12b-1 or administrative service fees to the financial institution; and (6) registered investment advisers investing on behalf of institutions and high net-worth individuals. Class R shares are only available to certain retirement plans.
Shares may be redeemed at any time and in any amount by contacting any broker or investment professional authorized by the Fund or the Distributor (as defined below) to sell shares or by contacting management of the Fund by mail or telephone.
7. | Other Agreements |
Fund Administration, Custody and Fund Accounting:
JPMorgan Chase Bank, N.A. serves as the administrator (the “Administrator”) to the Fund. The Administrator provides certain administrative services to the Fund. For these services, the Fund shall pay the Administrator a monthly fee, accrued daily and based on average net assets plus transaction charges pursuant to the agreements.
JPMorgan Chase Bank, N.A. serves as the custodian to the Fund in accordance with custodian agreement. Custodian fees are payable monthly by the Fund based on its aggregate value of the assets consisting of securities and cash held in custody accounts.
Transfer Agent:
Effective February 29, 2016, the Trust has entered into a Transfer Agency and Service Agreement with Boston Financial Data Services, Inc. (“BFDS”) with respect to the Fund whereby BFDS provides transfer agent and dividend disbursement agent services. Prior to February 29, 2016, U.S. Bancorp Fund Services LLC served as the transfer agent to the Predecessor Fund.
For the six months ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities, excluding short-term investments and U.S. government and agency securities and derivative investments, were as follows:
Purchases | Sales | |||||||||||
Long | Short | Long | Short | |||||||||
$130,479,193 | $132,266,675 | $ | 146,416,973 | $114,116,522 |
8. | Principal Risks |
The Fund’s investments are subject to a variety of risks that may cause the Fund’s net asset value to fluctuate over time. Therefore, the value of your investment in the Fund could decline and you could lose money. Also, there is no assurance that the Adviser or the Sub-Advisers will achieve the Fund’s objective.
Multi-Manager Risk is the risk that the success of the Fund’s investment strategy depends on, among other things, the Adviser’s ability to select Sub-Advisers to implement the Fund’s investment objective and the Adviser’s success in allocating assets to those Sub-Advisers.
Event Driven Trading involves the risk that the event identified may not occur as anticipated or may not have the anticipated effect, which may result in a negative impact upon the market price of securities held by the Fund.
Equity Market Risk is the risk that the market value of the securities in which the Fund invests may fall or fail to rise.
Market Volatility Risk is the risk that markets are volatile and the values of individual securities and other instruments can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments that may cause broad changes in market values.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
8. | Principal Risks (Continued) |
Company Risk is the risk that a company in which the Fund is invested may perform poorly, and therefore, the value of its stocks and other securities may decline.
Differential Strategy Risk is the risk that based on various business, regulatory and other considerations, the Adviser and Sub-Advisers may choose to pursue an investment strategy for the Fund which differs from the investment strategies pursued by other funds, accounts or other investment vehicles managed by the Adviser or Sub-Advisers (“Related Accounts”), which could adversely affect the Fund as such differences could cause the Fund’s performance to deviate materially from those of the Related Accounts.
Risks of Foreign Investing is the risk that because the Fund may invest in foreign securities, the Fund may be subject to the risks associated with foreign securities, such as country risk (the potentially adverse political, economic and other conditions of the country), currency risk (the constantly changing exchange rate between a local currency and the U.S. dollar) and custody risk (the risk associated with the process of clearing and settling Fund trades in foreign markets). Currency exchange rate fluctuations may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser or a Sub-Adviser are unsuccessful. This risk also includes the risk of investing in offshore funds, which are not subject to the investor protections of the Investment Company Act of 1940, as amended (the “1940 Act”) and also give rise to the aforementioned risks of foreign investing. Changes in tax and other laws could also adversely affect investments in offshore underlying funds.
Emerging and Developing Markets Risk is the risk associated with the Fund’s investments in securities of companies located or traded in developing or emerging markets, which are at an early stage of development and may have less stable governments, more volatile currencies and less established markets that are significantly volatile. Therefore, the above risks of foreign investing are often more pronounced in these markets.
Asset-Backed Securities Risk is the risk that like traditional fixed income securities, the value of asset-backed securities typically increases when interest rates fall and decreases when interest rates rise. Certain asset-backed securities may also be subject to the risk of prepayment.
Liquidity Risk is the risk arising from a lack of marketability of certain securities, which may make it difficult or impossible to sell at desirable prices in order to minimize loss. In periods of poor liquidity, the Fund may have to lower the selling price, sell other investments, or forgo another, more appealing investment opportunity.
Derivative Risk is the risk that gains or losses may be substantial, because a relatively small price movement in the underlying security(ies), instrument, currency or index may result in a substantial gain or loss. Derivatives may be a significant component of the Fund’s investment strategy.
Counterparty Risk is the risk that the use of derivatives and derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.
Hedged Exposure Risk is the risk that losses generated by a derivative or practice used by the Fund for hedging purposes should be offset in part by gains on the hedged investment depending on the degree of correlation between the hedging instrument and the assets hedged. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.
Correlation Risk is that the Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.
Liquidity risk is the risk that the derivative instrument may be difficult or impossible to sell or terminate.
Leverage risk is the risk that losses from the derivative instrument may be greater than the amount invested in the derivative instrument.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
8. | Principal Risks (Continued) |
Derivatives: Forward Foreign Currency Contracts Risk is the risk that the Fund may be exposed to when it agrees to enter into a type of derivative contract whereby the Fund may agree to buy or sell a country’s or region’s currency at a specific price on a specific date in the future. These contracts may fall in value due to foreign currency value fluctuations. The Fund’s investment or hedging strategies may not achieve their objective. Investments in these instruments also subject the Fund to counterparty risk.
Derivatives: Futures Risk is the risk that the Fund may be exposed to if it enters into futures contracts, including currency, bond, commodity, index and interest rate futures, for investment purposes, for risk management (hedging) purposes, and to increase flexibility. The volatility of futures contracts prices has been historically greater than the volatility of stocks and bonds. The liquidity of the futures markets depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants decide to make or take delivery, liquidity in the futures market could be reduced. In addition, futures exchanges often impose a maximum permissible price movement on each futures contract for each trading session. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible price movement. These risks are in addition to the general “Derivatives Risks” described above.
Derivatives: Options Risk is the risk that the Fund may be exposed to when it purchases or sells call or put options, which are in addition to the risks relating to “Derivatives” described above. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit that might have realized had it bought the underlying security at the time it purchased the call option. For a put option to be profitable, the market price of the underlying security must decline sufficiently below the exercise price to cover the premium and transaction costs. By using put options in this manner, the Fund will reduce any profit it might otherwise have realized from appreciation of the underlying security by the premium paid for the put option and by transaction costs. If the Fund sells a put option, there is a risk that it may be required to buy the underlying asset at a disadvantageous price. If the Fund sells a call option, there is a risk that it may be required to sell the underlying asset at a disadvantageous price. If the Fund sells a call option on an underlying asset that the Fund owns and the underlying asset has increased in value when the call option is exercised, the Fund will be required to sell the underlying asset at the call price and will not be able to realize any of the underlying asset’s value above the call price.
Derivatives: Swaps/Contracts for Differences Risk involves greater risks than direct investment in the underlying securities because swaps and contracts for differences are subject to the risks relating to “Derivatives” described above. Further, total return swaps and contracts for differences are also subject to the particular risk that they could result in losses if the underlying asset or reference does not perform as anticipated. Such transactions can have the potential for unlimited losses.
Short Sales are expected to comprise a significant component of the Fund’s investment strategy. It is considered a speculative investment practice. A short sale of a security involves the risk of an unlimited increase in the market price of the security which could result in an inability to cover the short position and thus a theoretically unlimited loss. Short sales may also subject the Fund to leverage risk (i.e., the risk that losses could well exceed the Fund’s investment). This can occur, for example, when the Fund fails to earn as much on an investment purchased with borrowed funds as it pays for the use of those funds. There can be no assurance that securities necessary to cover a short position will be available for purchase.
Debt Securities held by the Fund are subject to credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a debt security will be unable to make interest payments or repay principal when it becomes due. Interest rate risk refers to fluctuations in the value of a debt security resulting from changes in the general level of interest rates. The Fund may invest in “high yield”, lower rated (or unrated) securities (commonly referred to as “junk bonds”). These instruments are considered
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
APRIL 30, 2016 (Unaudited)
8. | Principal Risks (Continued) |
speculative and have a much greater risk of default, thereby subjecting the Fund to greater degrees of credit risk (risk of loss) and interest rate risk than higher-rated securities.
Convertible Securities held by the Fund are subject to the usual risks associated with debt securities, such as interest rate risk and credit risk. Convertible securities also react to changes in the value of the stock into which they convert, and are thus subject to market risk.
Leverage is speculative and can involve significant risk of loss. Some, or all, of the Fund’s Sub-Advisers may borrow money from banks for investment purposes and, thus, the Fund may make margin purchases of securities, to the extent permitted by the 1940 Act. The Fund is also subject to leverage risk in connection with the Sub-Advisers’ speculative investment practices, such as using short sales, securities lending, reverse repurchase agreements, derivatives or other instruments where the risk of loss exceeds the amount invested.
Securities Lending can involve risk of loss. A loan may be terminated at any time by the borrower or by the Fund upon notice. Upon termination, the borrower is obligated to return the loaned securities within three business days (one day in the case of government securities). Any gain or loss in the market price of the loaned securities during the course of the loan continues to inure to the Fund’s benefit or downside risk. As with any extensions of credit, there are risks of delay in recovery and, in some cases, even loss of rights in the collateral, should the borrower of the securities fail financially. In addition, securities lending involves a form of leverage, and the Fund may incur a loss if securities purchased with the collateral from securities loans decline in value or if the income earned does not cover the Fund’s transaction costs. However, loans of securities will be made only to companies the Adviser or the Fund’s Administrator deems to be creditworthy (such creditworthiness will be determined based on procedures approved by the Board) and when the income that can be earned from such loans justifies the attendant risks. Upon termination of the loan, the borrower is required to return the securities.
Exchange-Traded Fund investing involves several risks. The Fund may invest in ETFs, which are subject to, among other risks, tracking error risk and passive and, in some cases, active management investment risk. An active secondary market in ETF shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance that an ETF’s shares will continue to be listed on an active exchange. In addition, shareholders bear both their proportionate share of the Fund’s expenses and similar expenses incurred through ownership of the ETF.
Portfolio Turnover Risk is the risk that the Fund may engage in short-term trading. This means that the Fund may buy a security and sell that security a short period of time after its purchase. Short-term trading causes the Fund to have a high portfolio turnover rate, which could, in turn, generate higher transaction costs (due to commissions or dealer mark-ups and other expenses), and reduce the Fund’s investment performance. In addition, a high level of short-term trading may increase the amount of taxable income recognized by shareholders of the Fund, may reduce the after-tax returns of the shareholders, and, in particular, may generate short-term capital gains, which are taxed at ordinary income tax rates.
9. | Significant Shareholders |
As of April 30, 2016, the Fund had four shareholders with a record ownership of 90.4%, which are considered significant shareholders (holdings greater than 5.0%) for financial reporting purposes.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Concluded)
APRIL 30, 2016 (Unaudited)
10. | Subsequent Events |
Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures or adjustments were required to the financial statements as of April 30, 2016, other than those listed below.
The sub-advisory agreement with River Canyon Fund Management LLC will be terminated effective July 1, 2016. River Canyon Fund Management LLC was originally retained by the Fund to manage a portion of the Fund’s assets using Event Driven—Credit strategies but had never been allocated Fund assets to manage.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Shareholder Expense Examples (Unaudited)
As a shareholder, you incur two types of costs: (1) transaction costs for purchasing and selling shares and (2) ongoing costs, including management fees, other operational and investment related expenses. The expense example below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses
The actual expense example is based on an investment of $1,000 invested at the beginning of a six-month period and held through the period ended April 30, 2016.
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The hypothetical expense example is based on an investment of $1,000 invested at the beginning of a six-month period and held through the period ended April 30, 2015.
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and assumed rates of return of 5% per period before expenses, which are not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the periods. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation or redemption fees, or brokerage charges. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Shareholder Expense Examples (Unaudited) (Concluded)
| Beginning Account Value 11/1/2015 | Ending Account Value 4/30/2016 | Expenses Paid During the Period* | Expense Ratio During Period** | ||||||||||||
Class A | ||||||||||||||||
Actual | $ 1,000 | $ 965.90 | $ 17.06 | 3.49% | ||||||||||||
Hypothetical | $ 1,000 | $ 1,007.51 | $ 17.42 | 3.49% | ||||||||||||
Class C | ||||||||||||||||
Actual | $ 1,000 | $ 980.20 | $ 7.00 | 4.24% | ||||||||||||
Hypothetical | $ 1,000 | $ 1,003.78 | $ 21.12 | 4.24% | ||||||||||||
Class R | ||||||||||||||||
Actual | $ 1,000 | $ 981.30 | $ 6.18 | 3.74% | ||||||||||||
Hypothetical | $ 1,000 | $ 1,006.27 | $ 18.66 | 3.74% | ||||||||||||
Institutional Class | ||||||||||||||||
Actual | $ 1,000 | $ 966.70 | $ 15.84 | 3.24% | ||||||||||||
Hypothetical | $ 1,000 | $ 1,008.75 | $ 16.18 | 3.24% |
* | Expenses are equal to the average account value over the period multiplied by each Fund’s annualized expense ratio, multiplied by 182 days in the most recent fiscal half-year divided by 366 days in the fiscal year (to reflect one-half year period). |
** | The expense ratio presented represents a six-month, annualized ratio. |
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
(Unaudited)
Proxy Voting Information
The Trust’s Proxy Voting Policies and Procedures used to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 will be made available without charge, (i) upon request, by calling (866)733-7145; and (ii) on the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings Information
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal period on Form N-Q. The Funds’ Forms N-Q will be available on the SEC’s website at http://www.sec.gov. You may also review and obtain copies of the Funds“ Forms N-Q at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
BOARD APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENT
(Unaudited)
The Board of Trustees (the “Board,” the members of which are referred to as “Trustees”) of Aberdeen Funds (the “Trust”) met in person on October 13, 2015 and December 15, 2015 to consider the approval of: (i) the Investment Advisory Agreement between the Trust, on behalf of the Aberdeen Multi-Manager Alternative Strategies Fund II (the “Fund”) and Aberdeen Asset Management Inc. (“AAMI”) (the “Investment Advisory Agreement”); (ii) the Investment Sub-Advisory Agreement between AAMI and Ellington Management Group, L.L.C. for the Fund; (iii) the Investment Sub-Advisory Agreement between AAMI and Chilton Investment Company, LLC for the Fund; (iv) the Investment Sub-Advisory Agreement between AAMI and Algert Global, LLC with respect to the Fund; (v) the Investment Sub-Advisory Agreement between AAMI and PanAgora Asset Management, Inc. with respect to the Fund; (vi) the Investment Sub-Advisory Agreement between AAMI and Santa Fe Partners LLC with respect to the Fund; (vii) the Investment Sub-Advisory Agreement between AAMI and Otter Creek Advisors, LLC with respect to the Fund; (viii) the Investment Sub-Advisory Agreement between AAMI and Goldman Sachs Asset Management, L.P. with respect to the Fund; (ix) the Investment Sub-Advisory Agreement between AAMI and J.P. Morgan Investment Management Inc. with respect to the Fund; (x) the Investment Sub-Advisory Agreement between AAMI and River Canyon Fund Management LLC with respect to the Fund; (xi) the Investment Sub-Advisory Agreement between AAMI and York Registered Holdings, L.P. with respect to the Fund; and (xii) the Investment Sub-Advisory Agreement between AAMI and CQS (US), LLC with respect to the Fund (collectively, the “Sub-Advisory Agreements”). Each of Ellington Management Group, L.L.C., Chilton Investment Company, LLC, Algert Global, LLC, PanAgora Asset Management, Inc., Santa Fe Partners LLC, Otter Creek Advisors, LLC, Goldman Sachs Asset Management, L.P., J.P. Morgan Investment Management Inc., River Canyon Fund Management LLC, York Registered Holdings, L.P. and CQS (US), LLC is referred to herein as a “Sub-Adviser” (collectively, the “Sub-Advisers”). In addition, the Trustees who are not “interested persons” as defined in the Investment Company Act of 1940, as amended (the “1940 Act’) (the “Independent Trustees”) met in person on September 8, 2015 and held a separate call in advance of the in person meeting held on October 13, 2015 with independent legal counsel to review the materials provided and the relevant legal considerations (together with the in-person meetings held on October 13, 2015 and December 15, 2015, the “Meetings”). In accordance with Section 15(c) of the 1940 Act, the Board requested, reviewed and considered materials furnished by AAMI and the Sub-Advisers relevant to the Board’s consideration of whether to approve the Investment Advisory Agreement and the Sub-Advisory Agreements. These materials included (i) memoranda and materials provided by AAMI, describing the personnel and services to be provided to the Fund; (ii) memoranda and materials provided by AAMI describing the personnel and services to be provided by the Sub-Advisers to the Fund; (iii) performance information for the Arden Alternative Strategies II (the “Predecessor Fund”) that was proposed to be reorganized into the Fund, pending a vote of the Predecessor Fund’s shareholders, (iv), strategies and model portfolios relevant to the consideration of the Investment Advisory Agreement and the Sub-Advisory Agreements; (v) information independently compiled by Morningstar Associates, LLC (“Morningstar”) relating to the Fund’s proposed fees and expenses; (vi) a discussion of the financial information of AAMI and the Sub-Advisers, as applicable; and (vii) a discussion of the compliance programs of AAMI and the Sub-Advisers and the regulatory examination histories of each, as applicable. AAMI and the Sub-Advisers are referred to herein as the “Adviser,” as applicable. The Investment Advisory Agreement and the Sub-Advisory Agreements are referred to collectively herein as the “Advisory Agreement,” as applicable and the context suggests.
At the in-person meeting held on October 13, 2015, the Board, including the Independent Trustees, unanimously approved the Investment Advisory Agreement between the Fund and AAMI for an initial period ending June 30, 2017 and the Sub-Advisory Agreements between AAMI and each Sub-Adviser for an initial two-year period. At the in-person meeting held on December 15, 2015, the Board, including the Independent Trustees, unanimously approved amendments to the Sub-Advisory Agreements. The Board considered all factors it believed to be relevant with respect to the Fund, including, among other factors: (a) the nature, extent and quality of services to be provided by the Adviser; (b) the investment performance of the adviser and the Adviser’s portfolio management; (c) the advisory fees and the cost of the services and profits to be
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ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
BOARD APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENT
(Unaudited) (Continued)
realized by the Adviser from the relationship with the Fund; (d) economies of scale; and (e) other factors.
The following is a summary of the Board’s discussion and views regarding the factors it considered in evaluating the Advisory Agreement:
The nature, extent and quality of the services to be provided to the Fund under the Agreements. The Trustees considered the nature, extent and quality of the services to be provided by AAMI and the Sub-Advisers, as applicable, to the Fund and the resources dedicated to the Fund by the Adviser and affiliates. The Board considered, among other things, the Adviser’s investment experience. The Board also considered the background and experience of the senior management personnel of AAMI and the Sub-Advisers, and the qualifications, background and responsibilities of the portfolio managers to be primarily responsible for the day-to-day portfolio management services for the Fund. The Board also considered the allocation of responsibilities among AAMI and the Sub-Advisers. The Trustees considered not only the advisory services to be provided by AAMI and the Sub-Advisers to the Fund, but also the administrative services to be provided by JP Morgan Chase Bank, N.A., an affiliate of J.P. Morgan Investment Management Inc., to the Fund under a separate administration agreement. AAMI’s role in overseeing the Sub-Advisers in the management of the Fund and coordinating the activities of the Trust’s other service providers was also considered. The Board also considered that it receives information on a regular basis from the Trust’s Chief Compliance Officer regarding AAMI’s compliance policies and procedures, and that it had received information from the Trust’s Chief Compliance Officer regarding the Sub-Advisers’ compliance policies and procedures. The Board also considered the Adviser’s risk management processes. The Board was also mindful of the Adviser’s focus on the monitoring of the performance of the Fund and in addressing performance matters. The Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services. The Board also took into account its knowledge of management and the quality of the performance of management’s duties through Board meetings, discussion and reports during the preceding year.
After reviewing these and related factors, the Board concluded that the nature, extent and quality of the services provided supported the approval of the Agreements.
Investment Performance and the Adviser’s Portfolio Management. Because the Fund is newly formed, the Board did not consider the investment performance of the Fund. The Board considered the investment performance of the Predecessor Fund, including whether the Predecessor Fund had operated within its investment objective, as well as its compliance with its investment restrictions. The Board also reviewed the performance of each Sub-Adviser in its management of the portion of the Predecessor Fund that it had been assigned to manage, as applicable. The Board based its review of the Adviser’s performance primarily on the experience of the Adviser in managing other registered investment companies and private funds, noting that other funds the Adviser manages might have investment objectives, policies or restrictions different from those of the Fund. The Board also considered the experience, resources and strengths of the Adviser with respect to the investment strategies proposed for the Fund. Based on these factors, the Trustees determined that the Adviser would be an appropriate investment adviser for the Fund.
The costs of the services provided and profits to be realized by the Adviser and affiliates from the relationships with the Fund. The Trustees considered the fees to be charged to the Fund for investment advisory services as well as the total expense levels of the Fund. This information included comparisons (provided both by management and also by an independent third party) of the Fund’s net management fee and total expense level to those of its expense peer group and information about the advisory fees charged by the Adviser to any separately managed accounts with a similar strategy, as applicable. In considering the fees charged to any comparable accounts, the Trustees considered, among other things, management’s discussion of the different objectives, policies or restrictions that may be involved in managing the different types of accounts. In evaluating the Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management proposed for the Fund.
103
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
BOARD APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENT
(Unaudited) (Concluded)
The Trustees also noted that the sub-advisory fees for the Fund would be paid by AAMI out of its advisory fee, not by the Fund. The Board also considered that AAMI had entered into expense limitation agreements with the Fund, pursuant to which AAMI agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting the Fund’s total annual operating expenses for a period of time. The Trustees also noted that AAMI had agreed to maintain the advisory fee rate and expense limitations currently in place for the Predecessor Fund for a period of two years following the reorganization of the Predecessor Fund into the Fund.
The Trustees also considered the compensation directly or indirectly received by AAMI and its affiliates from their relationships with the Fund. The Trustees reviewed information provided by management as to the profitability of AAMI and its affiliates’ relationships with the Fund, such as the engagement of affiliates of AAMI to provide distribution services to the Fund. The Trustees also examined the profitability of AAMI and its affiliates on a Fund-by-Fund basis. The Trustees also considered information about the allocation of expenses used to calculate profitability. When reviewing profitability, the Trustees also considered information about court cases regarding adviser profitability, the performance of the Fund, the expense levels of the Fund, and whether AAMI had proposed breakpoints and an expense limitation with respect to the Fund. While the Trustees considered projected profitability to AAMI with respect to the Fund, they did not consider the projected profitability for the Sub-Advisers as they did not consider it to be particularly relevant because AAMI would be paying the Sub-Advisers out of its investment advisory fees. The Trustees therefore believed that AAMI had an incentive to negotiate the lowest possible sub-advisory fees.
After reviewing these and related factors, including taking into account management’s discussion regarding Fund expenses, the Board concluded that the proposed advisory fees were fair and reasonable, and that the costs of these services generally and the related profitability of AAMI and its affiliates from their relationships with the Fund were reasonable and supported the approval of the Agreements.
Economies of Scale. The Adviser provided the Board with information concerning the extent to which economies of scale would be realized as the Fund grew. AAMI presented information to show that the fees were set at a level that is competitive relative to comparable funds of an anticipated size and complexity. The Trustees noted that the Fund was subject to an expense limitation and that the Fund was subject to breakpoints. The Board considered that the funds in the Aberdeen fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit the Fund to incur lower expenses than it would otherwise as a stand-alone entity. The Board also considered AAMI’s overall operations and its efforts to expand the scale of, and further enhance the quality of, its operations.
Other Factors. The Board also took into account other ancillary or “fall out” benefits that the Adviser or its affiliates may derive from its relationship with the Fund, both tangible and intangible.
After reviewing these and related factors, the Board concluded that the advisory fee and sub-advisory fee structures were reasonable and reflect economies of scale being shared between the Fund and AAMI, and supported approval of the Advisory Agreement and the Sub-Advisory Agreements with respect to the Fund.
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that the Agreements would be in the best interest of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Investment Advisory Agreement for an initial period through June 30, 2017 and the Sub-Advisory Agreements for an initial two-year period.
104
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Privacy Notice
(Unaudited)
FACTS | WHAT DO ABERDEEN FUNDS DO WITH YOUR PERSONAL INFORMATION?
| |
Why? |
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
| |
What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include: | |
n Social Security number and account balances | ||
n Transaction history and assets | ||
n Checking account information and wire transfer instructions
| ||
How? |
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Aberdeen Funds choose to share; and whether you can limit this sharing.
|
105
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Privacy Notice (Continued)
(Unaudited)
Reasons we can share your personal information | Do Aberdeen Funds share? | Can you limit this sharing? | ||
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
| Yes | No | ||
For our marketing purposes — to offer our products and services to you
| Yes | Yes | ||
For joint marketing with other financial companies | No | We don’t share
| ||
For our affiliates’ everyday business purposes — information about your transactions and experiences
| Yes | No | ||
For our affiliates’ everyday business purposes — information about your creditworthiness
| No | We don’t share | ||
For our affiliates to market to you | No | We don’t share
| ||
For nonaffiliates to market to you | No | We don’t share
|
To limit our sharing |
n Call 1-800-522-5465
Please note:
If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice.
However, you can contact us at any time to limit our sharing.
| |||
Questions? |
www.aberdeen-asset.us
|
106
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Privacy Notice (Continued)
(Unaudited)
Who we are | ||
Who is providing this notice? | Aberdeen’s North American Funds (collectively referred to as “Aberdeen Funds”) | |
What we do
| ||
How do Aberdeen Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
| |
How do Aberdeen Funds collect my personal information? | We collect your personal information, for example, when you:
n Open an account or give us your contact information
n Provide account information or make wire transfers
n Make deposits or withdrawals from your account
| |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
n Sharing for affiliates’ everyday business purposes — information about your creditworthiness
n Affiliates from using your information to market to you
n Sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
| |
What happens when I limit sharing for an account I hold jointly with someone else? | Your choices will apply to everyone on your account.
|
107
ABERDEEN MULTI-MANAGER ALTERNATIVE STRATEGIES FUND II
Privacy Notice (Concluded)
(Unaudited)
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. | |
● Our affiliates include companies with an Aberdeen Asset Management name and wholly-owned subsidiaries of Aberdeen Asset Management PLC, a global financial services company.
| ||
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. | |
● Aberdeen Funds do not share personal information with nonaffiliates so they can market to you.
| ||
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. | |
● Aberdeen Funds don’t jointly market. | ||
Other important information | ||
This Privacy Notice is being provided by Aberdeen Funds and Aberdeen Investment Funds, each a U.S.-registered open-end investment company, and North-American-registered closed-end investment companies managed by Aberdeen Asset Management Inc. or its affiliates (collectively, North American Funds).
|
108
Corporate Information
Trustees P. Gerald Malone, Chairman Martin J. Gilbert Richard H. McCoy Neville J. Miles Peter D. Sacks John T. Sheehy Warren C. Smith John F. Solan, Jr.
Officers Bev Hendry, President and Chief Executive Officer Jeffrey Cotton, Chief Compliance Officer and Vice President Andrea Melia, Treasurer and Chief Financial Officer Megan Kennedy, Secretary and Vice President Brad Crombie, Vice President Lucia Sitar, Vice President Alan Goodson, Vice President Adam McCabe, Vice President Jennifer Nichols, Vice President Hugh Young, Vice President Russell Barlow, Vice President Eric Olsen, Assistant Treasurer Brian O’Neill, Assistant Treasurer
Investment Manager Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 | Administrator, Custodian & Fund Accountant JP Morgan Chase Bank N.A. 383 Madison Avenue Floor 11 New York, NY 10179
Transfer Agent Boston Financial Data Services, Inc. 30 Dan Road Canton, MA 02021
Distributor Aberdeen Fund Distributors LLC 1735 Market Street, 32nd Floor Philadelphia, PA 19103
Independent Registered Public Accounting Firm KPMG LLP 1601 Market Street Philadelphia, PA 19103
Fund Counsel Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019 |
Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 aberdeen-asset.us
ALT STRAT II-SAR |
Item 2. Code of Ethics.
Not applicable – for annual reports only.
Item 3. Audit Committee Financial Expert.
Not applicable – for annual reports only.
Item 4. Principal Accountant Fees and Services.
Not applicable – for annual reports only.
Item 5. Audit Committee of Listed Registrants.
Not applicable – for annual reports only.
Item 6. Investments.
(a) Schedule of Investments in securities of unaffiliated issuers as of close of the reporting period is included as part of the Reports to Shareholders filed under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended April 30, 2016, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d15(b)).
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Aberdeen Funds | ||
By: | /s/ Bev Hendry | |
Bev Hendry | ||
Principal Executive Officer of | ||
Aberdeen Funds |
Date: July 1, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Bev Hendry | |
Bev Hendry | ||
Principal Executive Officer of | ||
Aberdeen Funds |
Date: July 1, 2016
By: | /s/ Andrea Melia | |
Andrea Melia | ||
Principal Financial Officer of | ||
Aberdeen Funds |
Date: July 1, 2016