Aberdeen Asia-Pacific Income Fund, Inc. [FAX] Stock Forecast

Emerging Asian bonds, the key focus of abrdn's Asia-Pacific Income Fund, have been a beacon of resilience this year. Relative spreads are perhaps too narrow at this point, though, and could be vulnerable to a correction as longer-duration Treasuries normalize. FAX hasn't offered the returns to justify its high expense, levered portfolio and could be particularly vulnerable in a downturn.

abrdn Asia-Pacific Income Fund (FAX) invests in fixed income securities in the Asia-Pacific region, with a history of paying dividends and a current yield of 12.6%. FAX primarily invests in growing, large, and less risky economies, with a portfolio that includes government bonds and investment-grade sovereign bonds. The fund has been relatively unaffected by interest rate hikes but has been impacted by credit spread widening, and its portfolio is considered relatively low risk.

Aberdeen Asia-Pacific Income Fund, Inc. primarily invests in Asian bonds to fund its high distribution yield. The FAX closed-end fund currently pays a $0.275/month distribution for a 12.0% forward yield.

FAX pays monthly dividends and generates an annual yield in the range of 7 to 10 percent. Average yield during the past 5 years was close to 10 percent. FAX's portfolio is comparatively less risky, due to its diversification, lower volatility, and investing in growing, large, less risky, and credible economies.

FAX is a closed-end fund focused on emerging markets' fixed income. The vehicle is down -25% YTD, but more worryingly exposes a deeply negative decade-long total return.

FAX - Moving From Bearish To Neutral

The fund has a very high allocation to China debt (22.1%) which is a negative in the current environment.

Plenty of investors will tell you that the higher an investment's dividend yield, the greater the risk you'll suffer a big dividend cut, especially in a market downturn.

PHILADELPHIA, PA / ACCESSWIRE / June 23, 2021 / Aberdeen Standard Investments Inc.: ABERDEEN ASIA-PACIFIC INCOME FUND, INC. (NYSE AMERICAN:FAX) ABERDEEN AUSTRALIA EQUITY FUND, INC.

PHILADELPHIA, April 29, 2021 /PRNewswire/ -- Aberdeen Asia-Pacific Income Fund, Inc. (the "Fund") (NYSE American: FAX) held its Annual Meeting of Shareholders (the "Meeting") on April 29, 2021.  At the Meeting, shareholders of the Fund voted to elect one Class III Director and one Preferred Share Director to the Board of Directors and to approve the continuation of the term of two Directors under the Fund's Corporate Governance Policies.

Aberdeen Asia-Pacific Income Fund, Inc. is a US stock and trading under the symbol FAX

Aberdeen Asia-Pacific Income Fund, Inc. stock price is $2.73 today.

Yes, Aberdeen Asia-Pacific Income Fund, Inc. is a publicly traded company.