Abrdn Income Credit Strategies Fund (ACP) Stock

PHILADELPHIA, PA / ACCESSWIRE / December 10, 2024 / abrdn Income Credit Strategies Fund (NYSE:ACP) (the "Fund"), a closed-end fund, announced today that it has reduced its monthly distribution from US 10 cents per share to US 7.75 cents per share, commencing with the distribution payable on January 10, 2025 to shareholders of record as of December 30, 2024 (ex-dividend date December 30, 2024). This represents a change in the annualized distribution rate from 18% to 14% based on NAV as of December 9, 2024.

Charter's earnings report showed much lower ACP broadband losses than expected, hence the 12% market rally. ACP losses may not end in Q4 as management projects. Spectrum Mobile showed continued strength and may become even more profitable than expected.

LYB's Hostalen ACP process technology enables China Energy Group Ningxia Coal to meet demanding targets.

The abrdn Income Credit Strategies Fund (ACP) offers an 18.60% yield and trades at a discount to NAV, making it an attractive high-yield investment. ACP primarily invests in below-investment-grade debt across various industries and regions, aiming for high current income and capital appreciation. ACP's recent performance has outpaced its historical averages and benchmark index, with a stable monthly distribution and may offer a favorable tax deferral advantage from ROC.

ACP offers a high yield of 18.7%, but its historical performance shows significant capital erosion and multiple distribution cuts since inception. The fund's portfolio, mainly below investment grade debt, is highly vulnerable to interest rate changes, leading to inconsistent earnings and increased default risk. Despite trading at a discount to NAV, ACP's poor long-term performance and reliance on return of capital make it an unattractive investment.

Charter Communications is facing challenges following the termination of the Affordable Connectivity Program (ACP), a federal initiative that provided subsidies for internet service to low-income households, reporting a decline of 149,000 residential internet customers in the second quarter of 2024, primarily attributed to the end of the ACP.

PHILADELPHIA, PA and WHEATON, IL / ACCESSWIRE / July 22, 2024 / abrdn Income Credit Strategies Fund (NYSE:ACP) ("ACP" or the "Acquiring Fund") and First Trust High Income Long/Short Fund (NSYE:FSD) ("FSD" or the "Acquired Fund") announce today the completed reorganization of the Acquired Fund with the Acquiring Fund after close of regular business on July 19, 2024. In the reorganization, common shareholders of FSD received an amount of ACP common shares with a net asset value equal to the aggregate net asset value of their holdings of FSD common shares, as determined at the close of regular business on July 19, 2024.

The ACP fund has performed well, delivering 22% in total returns in the past year based on dual tailwinds of tighter credit and lower long-term interest rates. The ACP fund also pays an attractive 17.3% forward yield. However, the sustainability of the fund's distributions is a concern, as it has historically under-earned its distribution, with 2.0% p.a. returns over 10 years.

Work smarter, not harder, the adage tells us. One way to do that is with passive income, which is derived from ownership rather than labor or active involvement in an enterprise.