abrdn Asia-Pacific Income Fund VCC (FAP) Announces That There Will Be No 2026 Cash Redemption of Shares

abrdn Asia-Pacific Income Fund VCC (FAP) Announces That There Will Be No 2026 Cash Redemption of Shares

TORONTO, Jan. 2, 2026 /CNW/ -- abrdn Asia-Pacific Income Fund VCC (TSX: FAP) (UEN: T21VC0235H) (the "Company"), a closed-end investment company trading on the Toronto Stock Exchange, announced today that it will not conduct a voluntary cash redemption of shares in 2026 as the condition for the voluntary redemption offer was not met.

The annual redemption feature provides that if the volume weighted average trading price of the shares on the Toronto Stock Exchange during the 12 month period ending on the last business day of December of each year represents a discount to the average daily NAV per share during such period that is greater than the 12% trading discount redemption trigger percentage (the "Trading Discount Redemption Trigger"), the shareholders of the Company may voluntarily surrender their issued and outstanding shares of the Company for redemption. For the 12 months ended December 31, 2025, the average discount for the Fund was 9.08%, which was less than the Trading Discount Redemption Trigger.

As the condition for the voluntary redemption offer was not met, the Company will not conduct a cash redemption offer in 2026.

Adam McCabe, the Company's portfolio manager, offers the following outlook: "The Asia Pacific Fixed Income markets continue to offer appealing, diversified sources of income that are underpinned by robust fundamentals. Many years of reform, and policy discipline across both fiscal and monetary settings lays the foundation for resilient economic and financial market outcomes. Furthermore, the emergence of, and growing maturity in, domestic pools of savings create a natural demand for fixed income assets from domestic participants, which is a key dampener of bond market volatility in times of global uncertainty. Cyclically, the Asian fixed income markets are supported by sound valuations with positive real yields across many markets within the Company's investment universe."

Important Information

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Company's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Company will achieve its investment objective. Past performance does not guarantee future results.

The value at which a closed-end fund stock trades on a stock exchange is a function of external market factors that are not under the control of the Company's Board or Investment Advisor. The Company's shares may therefore trade at a premium or a discount to net asset value at any given time. Shareholders should be aware that a fund trading at a premium to net asset value may not be sustainable, and a fund's discount to net asset value can widen as well as narrow. Shareholders of a fund trading at a premium who participate in that fund's dividend reinvestment plan should note the reinvestment of distributions may occur at a premium to net asset value.  

About Aberdeen Investments

Aberdeen Investments is the registered marketing name in Canada for the following entities: abrdn Canada Limited, abrdn Investments Luxembourg S.A., abrdn Private Equity (Europe) Limited, abrdn Capital Partners LLP, and abrdn Alternative Funds Limited. abrdn Canada Limited is registered as a Portfolio Manager and Exempt Market Dealer in all provinces and territories of Canada as well as an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador.

Aberdeen Investments is one of the world's largest asset management firms with extensive experience in managing closed-end funds dating back to the 1980s. As of September 30, 2025, Aberdeen Investments had approximately US$515 billion in assets under management. Moreover, closed-end funds are an important element of Aberdeen Investments' client base in the U.S. and globally, managing 15 U.S. closed-end funds and 13 non-U.S. closed-end funds, totaling US$26.1 billion in assets as of September 30, 2025. 

abrdn Asia-Pacific Income Fund VCC | Aberdeen

SOURCE abrdn Asia-Pacific Income Fund VCC