abrdn Global Income Fund Inc. Underperforms Benchmark by 2.10% Due to High-Yield Bond Overweight and Weaker Dollar

Reuters
06/06
abrdn Global Income Fund Inc. Underperforms Benchmark by 2.10% Due to High-Yield Bond Overweight and Weaker Dollar

abrdn Global Income Fund Inc. reported its financial results for the quarter ended April 30, 2025, indicating a challenging period for the investment portfolio. The Fund underperformed its benchmark by approximately 2.10%, largely due to its strategic overweight in US-denominated high-yield bonds both domestically and in emerging markets. This underperformance was primarily driven by widening spreads and a weaker US dollar. Additionally, the Fund's lack of exposure to the New Zealand dollar further contributed to its relative underperformance. In terms of market performance, the Fund's net asset value $(NAV)$ showed a cumulative 10-year decline of 0.09%, with a more significant 4.82% drop over the last three months. The market price, however, experienced notable gains, with a 25.23% increase over the past year and a modest 0.68% rise in the last three months. The year-to-date market price growth stood at 5.01%. The economic landscape during the quarter was notably volatile, influenced by geopolitical developments and new US administration policies, particularly the April 2 Liberation Day tariffs. These factors contributed to the emergence of stagflation and increased market volatility, impacting high-yield markets globally and weighing on the US dollar. The Fund's outlook remains cautious, with no specific forward guidance provided in the commentary. Investors are advised that past performance does not guarantee future results. For further details on current holdings, stakeholders are encouraged to visit the Fund's website.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. abrdn Global Income Fund Inc. published the original content used to generate this news brief on June 05, 2025, and is solely responsible for the information contained therein.

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