N-Q 1 d147020dnq.htm ABERDEEN GLOBAL INCOME FUND, INC. Aberdeen Global Income Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number:    811-06342
Exact name of registrant as specified in charter:    Aberdeen Global Income Fund, Inc.
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:    866-839-5233
Date of fiscal year end:    October 31
Date of reporting period:    January 31, 2016


Item 1 – Schedule of Investments – The Schedule of Investments for the three-month period ended January 31, 2016 is filed herewith.

 


Portfolio of Investments (unaudited)

As of January 31, 2016

 

Principal Amount
(000)

    

Description

   Value
(US$)
 
CORPORATE BONDS - 22.6%   
AUSTRALIA - 0.9%   
AUD      500       DnB NOR Boligkreditt, 6.25%, 06/08/2016    $ 358,167   
AUD      500       National Capital Trust III, 3.33%, 09/30/2016(a)(b)(c)      351,108   
        

 

 

 
           709,275   
        

 

 

 
BANGLADESH - 0.3%   
USD      200       Banglalink Digital Communications Ltd., 8.63%, 05/06/2017(a)(d)      201,000   
        

 

 

 
BARBADOS - 0.3%   
USD      210       Sagicor Finance 2015 Ltd., 8.88%, 08/11/2019(a)(d)      229,950   
        

 

 

 
BRAZIL - 2.0%   
USD      420       Marfrig Overseas Ltd., 9.50%, 02/29/2016(a)(d)      408,450   
USD      420       OAS Financial Ltd., 8.88%, 04/25/2018(a)(b)(d)(e)(f)      14,280   
USD      780       Petrobras Global Finance BV, 5.75%, 01/20/2020      613,041   
USD      490       Petrobras International Finance Co., 5.38%, 01/27/2021      368,112   
USD      197       QGOG Atlantic, 5.25%, 11/30/2016(a)(d)      126,081   
        

 

 

 
           1,529,964   
        

 

 

 
CHILE - 0.7%   
USD      200       Empresa Nacional del Petroleo, 4.38%, 10/30/2024(d)      190,805   
USD      400       SACI Falabella, 3.75%, 04/30/2023(d)      385,792   
        

 

 

 
           576,597   
        

 

 

 
CHINA - 0.6%   
USD      210       Future Land Development Holdings Ltd., 10.25%, 07/21/2017(a)(d)      205,800   
USD      210       Shimao Property Holdings Ltd., 8.38%, 02/10/2019(a)(d)      222,224   
        

 

 

 
           428,024   
        

 

 

 
GEORGIA - 0.8%   
USD      250       Georgian Oil and Gas Corp., 6.88%, 05/16/2017(d)      246,500   
USD      400       Georgian Railway JSC, 7.75%, 07/11/2022(d)      404,000   
        

 

 

 
           650,500   
        

 

 

 
GUATEMALA - 0.6%   
USD      200       Comunicaciones Celulares SA, 6.88%, 02/06/2019(a)(d)      160,000   
USD      300       Industrial Subordinated Trust, 8.25%, 07/27/2021(d)      315,000   
        

 

 

 
           475,000   
        

 

 

 
INDIA - 0.5%   
USD      210       ABJA Investment Co. Pte Ltd., 5.95%, 07/31/2024(d)      176,190   
USD      210       ICICI Bank Ltd., 6.38%, 04/30/2017(a)(c)(d)      211,606   
        

 

 

 
           387,796   
        

 

 

 
INDONESIA - 1.0%   
USD      370       Pertamina Persero PT, 4.30%, 05/20/2023(d)      334,473   
USD      560       Pertamina Persero PT, 5.63%, 05/20/2043(d)      436,345   
        

 

 

 
           770,818   
        

 

 

 
KAZAKHSTAN - 1.9%   
USD      200       Kazakhstan Temir Zholy Finance BV, 6.95%, 07/10/2042(d)      168,240   
USD      570       Kazakhstan Temir Zholy Finance BV, 6.95%, 07/10/2042(d)      479,484   
USD      600       KazMunayGas National Co. JSC, 7.00%, 05/05/2020(d)      604,500   
USD      310       Zhaikmunai LP Via Zhaikmunai International BV, 7.13%, 11/13/2016(a)(d)      227,001   
        

 

 

 
           1,479,225   
        

 

 

 
MEXICO - 2.6%   
USD      250       Alfa SAB de CV, 6.88%, 09/25/2043(a)(d)      230,937   

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Portfolio of Investments (unaudited) (continued)

As of January 31, 2016

 

Principal Amount
(000)

    

Description

   Value
(US$)
 
CORPORATE BONDS (continued)   
MEXICO (continued)   
USD      200       Cemex Finance LLC, 9.38%, 10/12/2017(a)(d)    $ 201,940   
USD      280       Pemex Project Funding Master Trust, 6.63%, 06/15/2035      247,859   
USD      390       Petroleos Mexicanos, 6.50%, 06/02/2041      332,280   
USD      130       Petroleos Mexicanos, 6.63%, 06/15/2038      112,450   
USD      159       Petroleos Mexicanos, 6.88%, 08/04/2026(d)      161,783   
USD      200       Sixsigma Networks Mexico SA de CV, 8.25%, 11/07/2017(a)(d)      182,000   
USD      270       Tenedora Nemak SA de CV, 5.50%, 02/28/2018(a)(d)      268,650   
USD      240       Unifin Financiera SAPI de CV SOFOM ENR, 6.25%, 07/22/2017(a)(d)      226,800   
        

 

 

 
           1,964,699   
        

 

 

 
NEW ZEALAND - 0.9%   
NZD      1,000       General Electric Capital Corp., 6.75%, 09/26/2016      660,954   
        

 

 

 
NIGERIA - 0.3%   
USD      270       GTB Finance BV, 6.00%, 11/08/2018(d)      237,649   
        

 

 

 
PARAGUAY - 0.3%   
USD      250       Banco Regional SAECA, 8.13%, 01/24/2019(d)      252,500   
        

 

 

 
PERU - 0.5%   
USD      140       InRetail Consumer, 5.25%, 10/10/2018(a)(d)      137,200   
USD      84       Southern Copper Corp., 3.88%, 04/23/2025      74,721   
USD      160       Union Andina de Cementos SAA, 5.88%, 10/30/2018(a)(d)      153,920   
        

 

 

 
           365,841   
        

 

 

 
RUSSIA - 2.7%   
USD      400       Alfa Bank OJSC Via Alfa Bond Issuance PLC, 7.75%, 04/28/2021(d)      414,000   
USD      100       EDC Finance Ltd., 4.88%, 04/17/2020(d)      88,842   
USD      220       Evraz Group SA, 6.50%, 04/22/2020(d)      202,125   
USD      310       Gazprom Neft OAO Via GPN Capital SA, 4.38%, 09/19/2022(d)      271,250   
USD      300       Lukoil International Finance BV, 4.56%, 04/24/2023(d)      271,875   
USD      200       OJSC Novolipetsk Steel via Steel Funding Ltd., 4.95%, 09/26/2019(d)      197,016   
USD      107       RZD Capital Ltd., 5.74%, 04/03/2017(d)      108,894   
USD      260       Sberbank of Russia Via SB Capital SA, 6.13%, 02/07/2022(d)      264,383   
USD      270       Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, 7.75%, 02/02/2021(d)      278,505   
        

 

 

 
           2,096,890   
        

 

 

 
SUPRANATIONAL - 4.1%   
INR      48,800       European Bank for Reconstruction & Development, 6.00%, 03/03/2016      718,302   
NZD      3,800       International Finance Corp., 4.63%, 05/25/2016      2,473,954   
        

 

 

 
           3,192,256   
        

 

 

 
TURKEY - 0.8%   
USD      200       Arcelik, 5.00%, 04/03/2023(d)      180,370   
USD      200       Turkiye Sise ve Cam Fabrikalari, 4.25%, 05/09/2020(d)      192,958   
USD      250       Yasar Holdings AS, 8.88%, 11/06/2017(a)(d)      254,075   
        

 

 

 
           627,403   
        

 

 

 
UNITED ARAB EMIRATES - 0.7%   
USD      480       Jafz Sukuk Ltd., 7.00%, 06/19/2019(d)      525,010   
        

 

 

 
VENEZUELA - 0.1%   
USD      160       Petroleos de Venezuela SA, 8.50%, 11/02/2017(d)      65,984   
        

 

 

 

Total Corporate Bonds - 22.6%

(cost $17,948,368)

     17,427,335   
        

 

 

 
GOVERNMENT BONDS - 109.9%   
ANGOLA - 0.2%   
USD      200       Angolan Government International Bond, 9.50%, 11/12/2025(d)      167,040   
        

 

 

 

 

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Portfolio of Investments (unaudited) (continued)

As of January 31, 2016

 

Principal Amount
(000)

    

Description

   Value
(US$)
 
GOVERNMENT BONDS (continued)   
ARGENTINA - 1.4%   
USD      1,110       Argentina Bonar Bonds, 7.00%, 04/17/2017    $ 1,116,198   
        

 

 

 
ARMENIA - 0.5%   
USD      400       Republic of Armenia, 144A, 6.00%, 09/30/2020(d)      384,080   
        

 

 

 
AUSTRALIA - 23.7%   
AUD      800       Australia Government Bond, 3.25%, 04/21/2029(d)      589,375   
AUD      8,400       Australia Government Bond, 3.75%, 04/21/2037(d)      6,438,640   
AUD      1,600       Australia Government Bond, 4.50%, 04/21/2033(d)      1,352,539   
AUD      2,300       Australia Government Bond, 4.75%, 04/21/2027(d)      1,945,805   
AUD      3,200       New South Wales Treasury Corp., 6.00%, 04/01/2016      2,279,660   
AUD      1,500       New South Wales Treasury Corp., 6.00%, 02/01/2018      1,144,290   
AUD      1,500       Queensland Treasury Corp., 6.00%, 02/21/2018(d)      1,144,071   
AUD      1,600       Queensland Treasury Corp., 6.00%, 06/14/2021(d)(g)      1,337,285   
AUD      1,300       Queensland Treasury Corp., 6.00%, 07/21/2022(d)      1,097,447   
AUD      1,115       Treasury Corp. of Victoria, 6.00%, 06/15/2020      912,231   
        

 

 

 
     18,241,343   
        

 

 

 
BRAZIL - 2.3%   
BRL      7,210       Brazil Notas do Tesouro Nacional Series F, 10.00%, 01/01/2023      1,389,585   
USD      400       Brazilian Government International Bond, 7.13%, 01/20/2037      362,000   
        

 

 

 
     1,751,585   
        

 

 

 
CANADA - 18.2%   
CAD      2,183       Canadian Government Bond, 3.50%, 12/01/2045      2,067,064   
CAD      2,571       Canadian Government Bond, 3.75%, 06/01/2019      2,034,006   
CAD      3,790       Canadian Government Bond, 4.00%, 06/01/2016      2,736,759   
CAD      2,000       Canadian Government Bond, 8.00%, 06/01/2023      2,135,413   
CAD      2,000       Canadian Government Bond, 9.00%, 06/01/2025      2,409,537   
CAD      2,000       Hydro Quebec, 9.63%, 07/15/2022      2,099,650   
CAD      500       Ontario Electricity Financial Corp., 8.50%, 05/26/2025      537,019   
        

 

 

 
     14,019,448   
        

 

 

 
COLOMBIA - 0.2%   
USD      120       Colombia Government International Bond, 7.38%, 09/18/2037      126,300   
        

 

 

 
COSTA RICA - 0.3%   
USD      250       Costa Rica Government International Bond, 4.25%, 01/26/2023(d)      220,625   
        

 

 

 
DOMINICAN REPUBLIC - 1.6%   
USD      410       Dominican Republic International Bond, 5.88%, 04/18/2024(d)      395,650   
USD      100       Dominican Republic International Bond, 6.88%, 01/29/2026(d)      100,375   
USD      160       Dominican Republic International Bond, 7.50%, 05/06/2021(d)      169,200   
USD      530       Dominican Republic International Bond, 8.63%, 04/20/2027(d)      590,950   
        

 

 

 
     1,256,175   
        

 

 

 
EGYPT - 0.5%   
USD      430       Egypt Government International Bond, 5.88%, 06/11/2025(d)      358,592   
        

 

 

 
ETHIOPIA - 0.6%   
USD      500       Federal Democratic Republic of Ethiopia, 6.63%, 12/11/2024(d)      430,100   
        

 

 

 
GABON - 0.2%   
USD      200       Gabonese Republic, 6.95%, 06/16/2025(d)      154,028   
        

 

 

 
GHANA - 0.5%   
USD      550       Ghana Government International Bond, 8.13%, 01/18/2026(d)      393,866   
        

 

 

 

 

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Portfolio of Investments (unaudited) (continued)

As of January 31, 2016

 

Principal Amount
(000)

    

Description

   Value
(US$)
 
GOVERNMENT BONDS (continued)   
HONDURAS - 0.7%   
USD      530       Honduras Government International Bond, 7.50%, 03/15/2024(d)    $ 536,625   
        

 

 

 
INDONESIA - 2.5%   
USD      850       Indonesia Government International Bond, 5.88%, 01/15/2024(d)      931,387   
USD      200       Indonesia Government International Bond, 6.75%, 01/15/2044(d)      218,046   
IDR      5,600,000       Indonesia Treasury Bond, 5.25%, 05/15/2018      381,076   
IDR      5,600,000       Indonesia Treasury Bond, 8.38%, 03/15/2034      391,866   
        

 

 

 
     1,922,375   
        

 

 

 
IRAQ - 0.4%   
USD      550       Iraq International Bond, 5.80%, 03/17/2016(a)(d)      347,545   
        

 

 

 
IVORY COAST - 0.9%   
USD      600       Ivory Coast Government International Bond, 5.75%, 06/30/2016(d)(h)      520,164   
USD      200       Ivory Coast Government International Bond, 6.38%, 03/03/2028(d)      176,216   
        

 

 

 
     696,380   
        

 

 

 
JAMAICA - 0.5%   
USD      400       Jamaica Government International Bond, 7.88%, 07/28/2045      384,000   
        

 

 

 
KAZAKHSTAN - 0.6%   
USD      520       Kazakhstan Government International Bond, 3.88%, 10/14/2024(d)      488,904   
        

 

 

 
MEXICO - 1.8%   
MXN      6,110       Mexican Bonos, 7.50%, 06/03/2027      369,781   
MXN      9,950       Mexican Bonos, 7.75%, 11/13/2042      605,077   
USD      350       Mexico Government International Bond, 6.05%, 01/11/2040      376,688   
        

 

 

 
     1,351,546   
        

 

 

 
MONGOLIA - 0.6%   
USD      220       Development Bank of Mongolia LLC, 5.75%, 03/21/2017(d)(g)      204,769   
USD      400       Mongolia Government International Bond, 5.13%, 12/05/2022(d)      296,487   
        

 

 

 
     501,256   
        

 

 

 
MOZAMBIQUE - 0.5%   
USD      501       Mozambique EMATUM Finance 2020 BV, 6.31%, 09/11/2020(d)(g)      395,495   
        

 

 

 
NEW ZEALAND - 18.4%   
NZD      3,100       New Zealand Government Bond, 3.00%, 04/15/2020(d)      2,034,766   
NZD      1,700       New Zealand Government Bond, 4.50%, 04/15/2027(d)      1,230,722   
NZD      7,900       New Zealand Government Bond, 5.50%, 04/15/2023(d)      5,978,809   
NZD      6,555       New Zealand Government Bond, 6.00%, 05/15/2021(d)      4,920,955   
        

 

 

 
     14,165,252   
        

 

 

 
PHILIPPINES - 0.1%   
USD      40       Philippine Government International Bond, 8.38%, 06/17/2019      48,771   
        

 

 

 
ROMANIA - 2.6%   
RON      2,700       Romania Government Bond, 5.80%, 07/26/2027      745,819   
USD      1,090       Romanian Government International Bond, 6.13%, 01/22/2044(d)      1,288,925   
        

 

 

 
     2,034,744   
        

 

 

 
RUSSIA - 2.6%   
RUB      39,560       Russian Federal Bond - OFZ, 7.05%, 01/19/2028      420,237   
RUB      54,840       Russian Federal Bond - OFZ, 7.50%, 03/15/2018      691,595   
USD      200       Russian Foreign Bond - Eurobond, 4.88%, 09/16/2023(d)      203,500   
USD      700       Vnesheconombank Via VEB Finance PLC, 6.90%, 07/09/2020(d)      697,690   
        

 

 

 
     2,013,022   
        

 

 

 

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Portfolio of Investments (unaudited) (continued)

As of January 31, 2016

 

Principal Amount
(000)

    

Description

   Value
(US$)
 
GOVERNMENT BONDS (continued)   
RWANDA - 0.7%   
USD      350       Rwanda International Government Bond, 6.63%, 05/02/2023(d)    $ 323,183   
USD      200       Rwanda International Government Bond, 144A, 6.63%, 05/02/2023(d)      184,676   
        

 

 

 
     507,859   
        

 

 

 
SENEGAL - 0.4%   
USD      330       Senegal Government International Bond, 8.75%, 05/13/2021(d)      346,418   
        

 

 

 
SOUTH AFRICA - 0.9%   
USD      710       Eskom Holdings Ltd., 5.75%, 01/26/2021(d)      618,436   
USD      100       South Africa Government International Bond, 6.25%, 03/08/2041      102,350   
        

 

 

 
     720,786   
        

 

 

 
TANZANIA - 0.2%   
USD      200       Tanzania Government International Bond, 6.54%, 03/09/2020(c)(d)(i)      189,770   
        

 

 

 
TURKEY - 1.0%   
USD      200       Turkey Government International Bond, 5.63%, 03/30/2021      212,780   
USD      520       Turkey Government International Bond, 6.25%, 09/26/2022      571,109   
        

 

 

 
     783,889   
        

 

 

 
UKRAINE - 1.0%   
USD      810       Ukraine Government International Bond, 7.75%, 09/01/2023(d)      744,795   
        

 

 

 
UNITED KINGDOM - 21.9%   
GBP      1,172       United Kingdom Gilt, 1.25%, 07/22/2018(d)      1,700,503   
GBP      2,849       United Kingdom Gilt, 4.00%, 03/07/2022(d)      4,759,845   
GBP      823       United Kingdom Gilt, 4.25%, 06/07/2032(d)      1,530,341   
GBP      1,121       United Kingdom Treasury Gilt, 4.25%, 09/07/2039(d)      2,156,823   
GBP      3,242       United Kingdom Treasury Gilt, 4.25%, 12/07/2049(d)      6,758,478   
        

 

 

 
     16,905,990   
        

 

 

 
URUGUAY - 1.0%   
UYU      13,224       Uruguay Government International Bond, 4.25%, 04/05/2027(j)      379,838   
USD      146       Uruguay Government International Bond, 7.63%, 03/21/2036      178,120   
USD      165       Uruguay Government International Bond, 7.88%, 01/15/2033      201,300   
        

 

 

 
     759,258   
        

 

 

 
ZAMBIA - 0.4%   
USD      410       Zambia Government International Bond, 8.97%, 07/30/2027(d)      291,141   
        

 

 

 

Total Government Bonds - 109.9%

(cost $90,782,547)

     84,755,201   
        

 

 

 
SHORT-TERM INVESTMENT - 3.2%   
UNITED STATES - 3.2%   
     2,448       Repurchase Agreement, Fixed Income Clearing Corp., 0.03% dated 01/29/2016, due 02/01/2016 in the amount of $2,448,006 (collateralized by $2,305,000 U.S. Treasury Bond, maturing 02/15/2043; value $2,502,216)      2,448,000   
        

 

 

 

Total Short-Term Investment - 3.2%

(cost $2,448,000)

     2,448,000   
        

 

 

 

Total Investments - 135.7%

(cost $111,178,915)

     104,630,536   
        

 

 

 

Liabilities in Excess of Other Assets - (35.7)%

     (27,539,672
        

 

 

 
Net Assets - 100.0%    $ 77,090,864   
        

 

 

 

 

AUD   -   Australian Dollar
BRL   -   Brazilian Real
CAD   -   Canadian Dollar

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Portfolio of Investments (unaudited) (concluded)

As of January 31, 2016

 

GBP   -   British Pound Sterling
IDR   -   Indonesian Rupiah
INR   -   Indian Rupee
MXN   -   Mexican Peso
NZD   -   New Zealand Dollar
RON   -   Romanian Leu
RUB   -   New Russian Ruble
USD   -   U.S. Dollar
UYU   -   Uruguayan Peso

 

(a) The maturity date presented for these instruments represents the next call/put date.

 

(b) Perpetual bond. This is a bond that has no maturity date, is redeemable and pays a steady stream of interest indefinitely.

 

(c) Indicates a variable rate security. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at January 31, 2016.

 

(d) Denotes a restricted security.

 

(e) Security is in default.

 

(f) Illiquid security.

 

(g) This security is government guaranteed.

 

(h) Indicates a stepped coupon bond. This bond was issued with a low coupon that gradually increases over the life of the bond.

 

(i) Variable or Floating Rate Security. Rate disclosed is as of January 31, 2016.

 

(j) Inflation linked security.

At January 31, 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
Depreciation
 
New Zealand Dollar/United States Dollar              

05/23/2016

   State Street Bank & Trust Co.    NZD     7,713,966       USD     5,000,000       $ 4,962,933       $ (37,067
               

 

 

    

 

 

 
                $ 4,962,933       $ (37,067 ) 
               

 

 

    

 

 

 

Sale Contracts

Settlement Date

  

Counterparty

   Amount
Purchased
     Amount Sold      Fair Value      Unrealized
Appreciation/
(Depreciation)
 

United States Dollar/Australian Dollar

  

          

04/06/2016

   State Street Bank & Trust Co.    USD     3,800,000       AUD     5,462,124       $ 3,854,056       $ (54,056

United States Dollar/Mexican Peso

  

          

04/14/2016

   Citibank    USD     450,557       MXN     8,080,000         443,334         7,223   

United States Dollar/New Zealand Dollar

  

          

05/23/2016

   State Street Bank & Trust Co.    USD     12,000,000       NZD     18,948,665         12,190,999         (190,999
               

 

 

    

 

 

 
   $ 16,488,389       $ (237,832
               

 

 

    

 

 

 

At January 31, 2016, the Fund’s interest rate swaps were as follows:

 

Currency

   Notional
Amount
     Expiration
Date
    

Counterparty

   Receive
(Pay)
Floating
Rate
  

Floating Rate Index

   Fixed
Rate
    Unrealized
Depreciation
 

Over-the-counter swap agreements:

          
USD      16,500,000         11/01/2017       Barclays    Receive    3-month LIBOR Index      0.84   $ (31,685

Centrally cleared swap agreements:

          
USD      15,000,000         11/04/2024       Citibank    Receive    3-month LIBOR Index      2.44     (990,020
                   

 

 

 
  $ (1,021,705 ) 
                   

 

 

 

 

See Notes to Portfolio of Investments.

Aberdeen Global Income Fund, Inc.


Notes to Portfolio of Investments (unaudited)

January 31, 2016

 

Summary of Significant Accounting Policies

 

a. Security Valuation:

The Fund values its securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Fund’s 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 by the Fund’s Board of Directors (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” size that transacted 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 of fair value. Debt and other fixed-income securities are generally determined to be Level 2 investments.

Derivatives are valued at fair value. Exchange traded derivatives are generally Level 1 investments and over-the-counter derivatives are generally Level 2 investments. 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. Interest rate swaps 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, the security is valued at fair value as determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by 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 accounting principles generally accepted in the United States of America (“GAAP”), the Fund discloses the fair value of its 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 similar assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for identical 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).

 

Aberdeen Global Income Fund, Inc.


Notes to Portfolio of Investments (unaudited) (continued)

January 31, 2016

 

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 January 31, 2016 in valuing the Fund’s investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

 

     Level 1      Level 2     Level 3      Total  
Investments, at Value           
Fixed Income Investments           

Corporate Bonds

             17,427,335                17,427,335   

Government Bonds

             84,755,201                84,755,201   
  

 

 

    

 

 

   

 

 

    

 

 

 
Total Fixed Income Investments              102,182,536                102,182,536   
Short-Term Investment              2,448,000                2,448,000   
  

 

 

    

 

 

   

 

 

    

 

 

 
Total Investments    $       $ 104,630,536      $       $ 104,630,536   
  

 

 

    

 

 

   

 

 

    

 

 

 
Other Financial Instruments           

Forward Foreign Currency Exchange Contracts

             7,223                7,223   
  

 

 

    

 

 

   

 

 

    

 

 

 
Total Other Financial Instruments    $       $ 7,223      $         7,223   
  

 

 

    

 

 

   

 

 

    

 

 

 
Total Assets    $       $ 104,637,759      $         104,637,759   
  

 

 

    

 

 

   

 

 

    

 

 

 
Liabilities           
Other Financial Instruments           

Forward Foreign Currency Exchange Contracts

             (282,122             (282,122

Interest Rate Swap Agreements

             (1,021,705             (1,021,705
  

 

 

    

 

 

   

 

 

    

 

 

 
Total Liabilities    $   —       $ (1,303,827   $   —       $ (1,303,827
  

 

 

    

 

 

   

 

 

    

 

 

 

For movements between the Levels within the fair value hierarchy, the Fund has adopted a policy of recognizing transfers at the end of each period. During the period ended January 31, 2016, there were no transfers between Levels 1, 2 or 3. For the period ended January 31, 2016, there were no significant changes to the fair valuation methodologies.

 

b. Repurchase Agreements:

The Fund may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is the 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 the 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 repurchase agreement, realization of the collateral by the Fund may be delayed or limited. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on the Fund’s repurchase agreement, see the Portfolio of Investments. The Fund held a repurchase agreement of $2,448,000 as of January 31, 2016. The value of the related collateral exceeded the value of the repurchase agreement at January 31, 2016.

 

c. Restricted Securities:

Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Fund 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 Fund, but resale of such securities in the U.S. is permitted only in limited circumstances.

 

Aberdeen Global Income Fund, Inc.


Notes to Portfolio of Investments (unaudited) (concluded)

January 31, 2016

 

d. Federal Income Taxes:

The U.S. federal income tax basis of the Fund’s investments and the net unrealized appreciation as of January 31, 2016 were as follows:

 

Cost   Appreciation   Depreciation   Net Unrealized Appreciation
$103,521,795   $4,634,354   $(3,525,613)   $1,108,741

 

Aberdeen Global Income Fund, Inc.


Item 2 – 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 (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 Investment Company Act of 1940 (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 240.15d-15(b)).

 

  (b) There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

  (a) Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.302CERT.


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 Global Income Fund, Inc.
  BY:       /s/ Christian Pittard
    Christian Pittard,
    Principal Executive Officer of
    Aberdeen Global Income Fund, Inc.
  Date: March 30, 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/ Christian Pittard
    Christian Pittard,
    Principal Executive Officer of
    Aberdeen Global Income Fund, Inc.
  Date: March 30, 2016

 

  BY:       /s/ Andrea Melia
    Andrea Melia,
    Principal Financial Officer of
    Aberdeen Global Income Fund, Inc.
  Date: March 30, 2016