abrdn Income Credit Strategies Fund
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$6.80
- Net Assets:$339.84 Million
- NAV:$7.06
- Premium-3.68%
- Peer Rank:28 of 28
- Investment Rating:D
- Performance:C-
- RiskC
We rate abrdn Income Credit Strategies at D. Negative factors that influence this rating include a high price volatility and high expense structure. The fund invests approximately 81% of its assets in bonds and may be considered for investors seeking a Loan Participation strategy.
Total return ranks below peers over the last three years. The abrdn Income Credit Strategies has returned an annual rate of 3.41% since inception. More recently, the fund has generated a total return of 3.37% in the last five years, -1.32% in the last three years, and 8.94% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 38% of them. It has also outpaced 28% of its competitors on a three year basis and 45% of them over the last year for the period ending 2/29/2024. On a year to date basis, ACP has returned 3.40%.
Downside risk has been above average. ACP has a draw down risk of -53.83%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 26.0%. This fund has experienced excessive volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $339.84 million, ACP maintains a high expense ratio compared to its Loan Participation peers of 4.56% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As ACP is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The abrdn Income Credit Strategies has been managed by Benjamin J. Pakenham for the last 6 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 10% of other fund managers.