The Board of Directors of the Aberdeen Global Income Fund, Inc. (the “Fund”) has authorized a managed distribution policy (“MDP”) of paying monthly distributions at an annual rate set once a year. The Fund’s current monthly distribution is set at a rate of $0.07 per share. With each distribution, the Fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and estimated composition of the distribution and other information required by the Fund’s MDP

exemptive order. The Fund’s Board of Directors may amend or terminate the MDP at any time without prior notice to shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions about the Fund’s investment performance from the amount of distributions or from the terms of the Fund’s MDP.

The Fund’s policy is to provide investors with a stable monthly distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital.

The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax rules, the amount applicable to the Fund and character of distributable income for each fiscal period depends on the actual exchange rates during the entire year between the U.S. Dollar and the currencies in which Fund assets are denominated and on the aggregate gains and losses realized by the Fund during the entire year.

Therefore, the exact amount of distributable income for each fiscal year can only be determined as of the end of the Fund’s fiscal year, October 31. Under Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund is required to indicate the sources of certain distributions to shareholders. The estimated

distribution composition may vary from month to month because it may be materially impacted by future income, expenses and realized gains and losses on securities and fluctuations in the value of the currencies in which the Fund’s assets are denominated.

Based on generally accepted accounting principles, the Fund estimates that distributions for the fiscal year commenced November 1, 2019, through the distributions declared on May 11, 2020 and June 9, 2020, consisted of 38% net investment income and 62% return of capital. The amounts and sources of distributions reported in this report are only estimates and are not being provided for tax reporting purposes.

In January 2021, a Form 1099-DIV will be sent to shareholders, which will state the final amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2020 calendar year.

Dear Shareholder,

We present this Semi-Annual Report, which covers the activities of Aberdeen Global Income Fund, Inc. (the “Fund”), for the six-month period ended April 30, 2020. The Fund’s principal investment objective is to provide high current income by investing primarily in fixed income securities. As a secondary investment objective, the Fund seeks capital appreciation, but only when consistent with its principal investment objective.

Total Investment Return

For the six-month period ended April 30, 2020, the total return to shareholders of the Fund based on the net asset value (“NAV”) and market price of the Fund are as follows:

* assuming the reinvestment of all dividends and distributions

The Fund’s NAV total return is based on the reported NAV for each financial reporting period end which could differ from the NAV disclosed within the financial statements. For more information on Fund performance, please see page 3 of Report of the Investment Manager.

NAV and Market Price

The below table represents comparison from current six month period end to prior fiscal year end of Market Price to NAV and associated Discount.

Throughout the six-month period ended April 30, 2020, the Fund’s NAV was within a range of $5.42 to $7.99 and the Fund’s market price traded within a range $4.53 to $8.48. Throughout the six-month period ended April 30, 2020, the Fund’s shares traded within a range of a discount of 20.7% to a premium of 7.6%.

Portfolio Management

The Fund is managed by Aberdeen Standard Investment’s1 Asia-Pacific fixed income team which also draws on the expertise of Aberdeen’s fixed income team globally. The Asia-Pacific fixed income team works in a collaborative fashion; all team members have both portfolio management and research responsibilities. The team is responsible for the day-to-day management of the Fund.

Managed Distribution Policy

Distributions to common shareholders for the twelve months ended April 30, 2020 totaled $0.84 per share. Based on the share price of $5.63 on April 30, 2020, the distribution rate over the twelve-month period ended April 30, 2020 was 14.9%. Since all distributions are paid after deducting applicable withholding taxes, the effective distribution rate may be higher for those U.S. investors who are able to claim a tax credit.

On May 11, 2020 and June 9, 2020, the Fund announced that it will pay on May 29, 2020 and June 30, 2020, respectively, a distribution of U.S. $0.07 per share to all shareholders of record as of May 21, 2020 and June 19, 2020, respectively.

The Fund’s policy is to provide investors with a stable monthly distribution out of current income, supplemented by realized capital gains and, to the extent necessary, paid-in capital, which is a non-taxable return of capital. This policy is subject to an annual review as well as regular review at the Board’s quarterly meetings, unless market conditions require an earlier evaluation.

Open Market Repurchase Program

The Fund’s policy is generally to buy back Fund shares on the open market when the Fund trades at certain discounts to NAV and management believes such repurchases may enhance shareholder value. During the six-month period ended April 30, 2020 and fiscal year ended October 31, 2019, the Fund did not repurchase any shares.

Revolving Credit Facility

The Fund’s $40,000,000 revolving credit facility with The Bank of Nova Scotia was renewed for a 3-year term on February 28, 2020. The Fund’s outstanding balance as of October 31, 2019 was $29.3 million on the Revolving Credit Facility. During the period between March 4, 2020 and April 14, 2020, the Fund drew or paid down a net of $13.0 million. The Fund’s outstanding balance as of April 30, 2020 was $16.3 million. Under the terms of the loan facility and applicable regulations, the Fund is required to maintain certain asset coverage ratios for the amount of its outstanding borrowings. The Board regularly reviews the use of leverage by the Fund. The Fund is also authorized to use reverse repurchase agreements as another form of leverage.

Portfolio Holdings Disclosure

The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Fund’s semiannual and annual reports to shareholders. The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT (previously on Form N-Q). These reports are available on the SEC’s

website at http://www.sec.gov. The Fund makes this information available to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

Proxy Voting

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve months ended June 30 is available by August 31 of the relevant year: (i) upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465; and (ii) on the SEC’s website at http://www.sec.gov.

Unclaimed Share Accounts

Please be advised that abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed property, and Fund shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund’s transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Fund’s transfer agent will follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Fund’s transfer agent.

COVID-19

The respiratory illness COVID-19 caused by a novel coronavirus has resulted in a global pandemic and major disruption to economies and markets around the world, including the United States. Financial markets have experienced extreme volatility and severe losses, and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for individual issuers, including the Fund, are not known. Governments and central banks, including the Federal Reserve in the U.S., have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. The impact of these measures, and whether they will be effective to mitigate the economic and market disruption, will not be known for some time.

LIBOR

Under the revolving credit facility, the Fund is charged interest on amounts borrowed at a variable rate, which may be based on the London Interbank Offered Rate (“LIBOR”) plus a spread. Additionally, the Fund may invest in certain debt securities, derivatives or other financial instruments that utilize LIBOR as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the head of the United Kingdom’s Financial Conduct Authority announced a desire to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement reference rate. As such, the potential effect of a transition away from LIBOR Fund’s payment obligations under the revolving credit facility and on the Fund’s investments that reference LIBOR cannot yet be determined.

Investor Relations Information

As part of Aberdeen Standard’s commitment to shareholders, we invite you to visit the Fund on the web at www.aberdeenfco.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance information, and other Fund literature.

Enroll in our email services today and be among the first to receive the latest closed-end fund news, announcements, videos, information and important Fund documents. Sign up today at https://www.aberdeenstandard.com/en-us/cefinvestorcenter/contactus/preferences

Contact Us:

·   Visit: aberdeenstandard.com/en-us/cefinvestorcenter

·   Email: Investor.Relations@aberdeenstandard.com; or

·   Call: 1-800-522-5465 (toll free in the U.S.).

Yours sincerely,

/s/ Christian Pittard

Christian Pittard
President

Market/economic review

The period under review has been one of the most challenging for bond markets as the onset of coronavirus (COVID-19) disrupted economic activities and life as we know it. Investors feared that the subsequent economic impact would result in a recession deeper than the global financial crisis (GFC) of 2008-2009.

Prior to the outbreak of coronavirus, investor sentiment improved in late 2019 in response to the partial U.S.-China trade deal and encouraging U.S. economic data. Global stocks and currencies rallied, credit spreads tightened, and local-currency bond yields were stable. However, these reversed in early 2020, as the worldwide pandemic brought economies worldwide to a standstill as countries imposed lockdowns. By March, panic selling hammered global equities, while bonds and credit markets battled liquidity issues. This was further compounded by a plunge in oil prices after Saudi Arabia and Russia failed to reach an agreement on production cuts, amid a drop in demand. The monetary policy tightening by many central banks globally in the fourth quarter of 2019 gave way to easing as governments rolled out emergency stimulus and central banks lowered interest rates to support local companies and citizens. The U.S. Federal Reserve (Fed) cut its benchmark interest rate by 150 basis points (bps) to a range of 0.0% to 0.25% in its first emergency move since the GFC, maintaining a market-friendly tone. The yield on the benchmark 10-year U.S. Treasury note subsequently fell by 105 bps to 0.64% during the reporting period. Meanwhile, in a glimpse of the potential fallout from the virus, China’s gross domestic product (GDP) contracted by 6.8% year – over year in the first quarter of 2020, while growth across the Asia-Pacific region was also weak. Nonetheless, factory output in China rose in March 2020, hinting at improving conditions.

By the end of the reporting period, some positive signs emerged as COVID-19 infection rates tapered globally. The phased-in reopening of the Chinese economy, along with the easing of social-distancing measures in some U.S. states and European countries, lifted investors’ risk appetite. Global equity prices moved higher in April 2020, while bond yields and currencies stabilized as liquidity issues abated. However, during this period, oil prices continued to decline. The drop in demand negated the largest coordinated output cut in history by the Organization of Petroleum Exporting Countries (OPEC) and its key partners. Meanwhile, the price of West Texas Intermediate crude oil futures briefly turned negative on April 20, 2020, due to the lack of storage capacity.

Asia-Pacific local-currency government bond yields initially rose in late 2019, on positive U.S.-China trade developments. However, yields subsequently moved lower as investors priced-in the various fiscal

situations amid increased fiscal stimulus, monetary policy easing and deteriorating economic growth outlooks due to the COVID-19 pandemic. Consequently, across all Asia-Pacific markets, the yield curve steepened as the short end outperformed the long end. Overall, the Asia-Pacific region outperformed the broader emerging markets, supported by better fundamentals and lower sensitivity to commodity-price fluctuations.

At a country level, declines in economic growth rates and rising fiscal deficits in both the Philippines and Malaysia resulted in unscheduled interest-rate cuts of 50 bps by each country’s central bank. This caused 10-year benchmark bond yields to fall by 83 bps and 58 bps, respectively, over the reporting period. The fixed-income markets in Singapore and Thailand also performed well during the reporting period, with 10-year yields falling by corresponding margins of 87 bps and 55 bps. Yield curves stabilized across Asian markets, many of which had steepened to multi-year highs in March. In India, 10-year yields dipped by 34 bps over the reporting period, as investors’ concerns over fiscal slippage1 weighed on sentiment for longer-dated bonds, while two-year yields declined 94 bps on the Reserve Bank of India’s (RBI) monetary policy easing measures. China’s exit from its COVID-19-induced lockdown and gradual recovery in economic activity, combined with the anticipation of further fiscal support, caused the 10-year yield to decline 77 bps during the reporting period, while the three-year yield fell by 142 bps. The spread between short- and long-term yields also widened significantly. Conversely, Indonesia bucked the trend as investors worried about additional government bond supply to finance the widening fiscal deficit. As a result, the 10-benchmark yield rose by 87 bps over the reporting period.

Asian currencies were also volatile during the six-month period ended April 30, 2020. Prior to the outbreak of COVID-19, Asian currencies strengthened overall against the U.S. dollar amid investors’ optimism over the partial U.S.-China trade deal. However, the currencies ended the reporting period with lower values, as investors sold Asian assets for the safe-haven U.S. dollar and Japanese yen. The Thai baht declined the most, falling 6.7% versus the U.S. dollar after the government stepped in to slow the appreciating currency. The Indonesian rupiah fell 5.6% over the reporting period as foreigners continued to reduce their exposure to Indonesian assets on heightened COVID-19 concerns. The flight to safety resulted in one of the highest net outflows seen in recent years. Meanwhile, the Indian rupee depreciated by 5.5% over the reporting period, mainly during the market selloff in March 2020, as investors sold equities. In contrast, the Philippine peso performed well after the country’s central bank eased monetary policy and lowered banks’ reserve-ratio requirements, with ample headroom for further measures, in our view.

Asian U.S.-dollar credit produced a negative total return for the reporting period. The performance of the asset class was positive for much of the reporting period as the Fed made its final mid-cycle interest-rate cuts. Trade tensions between the U.S. and China also abated as the world’s two largest economies reached a partial deal. While the impact of the COVID-19 pandemic was already felt in the Asia-Pacific region in early January 2020, investors in other global markets remained fairly upbeat on the belief that the virus was confined to Asia. In March 2020, however, that illusion was shattered and massive economic shutdowns took hold across the world, triggering one of the sharpest selloffs ever seen in global credit markets. Asian credit outperformed both U.S. and emerging-market credit (excluding Asia) during the selloff. With the overall performance driven by the significant market decline in March, quasi-sovereign and sovereign debt fared better than corporate bonds, and investment-grade2 bonds outperformed high-yield issues, as investors took a more defensive stance.

The pandemic pressured many sectors during the reporting period. Global travel restrictions caused prolonged shutdowns of airlines and tourism-related companies. Stay-at-home orders in most developed countries battered the retail and leisure sectors. The collapse of oil prices placed the energy sector under severe stress. We expect this to result in increased leveraging for corporate issuers, while credit-rating agencies3 aggressively downgrade issuers and sectors en masse. Across Asia, a few incidents highlighted the market stress. In India, the significant downturn in the domestic bond market forced U.S. asset manager Franklin Templeton to freeze six funds, spurring the RBI to step in with an emergency liquidity infusion for other funds. Indonesia’s state-owned utility company, Perusahaan Listrik Negara (PLN) (in which the Fund has a position), denied rumored plans to postpone debt payments for 2020. However, this caused volatility among bonds from other state-owned enterprises, as well as those of PLN’s customers. In Singapore, oil trader Hin Leong (which the Fund does not hold) revealed a US$800 million loss that was not disclosed on its books, prompting investors’ concerns around its impact on banks’ credit costs and credit availability to its peers. Elsewhere, airline operator Virgin Australia Holdings Ltd. (in which the Fund has a position) became one of Asia’s first COVID-19-related defaults, with

the company entering voluntary administration after the government rejected its request for a US$1.4 billion bailout. In contrast, Chinese conglomerate HNA Group Co. Ltd. (which the Fund does not hold), which is also under financial stress, obtained approval to extend the maturities of its issues, despite objections from most bondholders. In our view, the two circumstances of Virgin Australia and HNA Group provide a good comparison of the differences in insolvency situations, and in investor and issuer approaches to default.

Emerging-market debt outside of Asia began the reporting period on a positive note, lifted by investors’ optimism regarding the U.S.-China partial trade deal. Therefore, December was one of the strongest-performing months of 2019 for emerging-market debt. However, with the global spread of the COVID-19 pandemic, bonds sold off and emerging-market currencies depreciated against the U.S. dollar, particularly in March 2020, when hard-currency debt fell dramatically and benchmark spread widened by 610 bps over comparable-duration4 U.S. Treasuries. The pandemic highlighted fundamental vulnerabilities among countries as deteriorating economic growth, tight fiscal situations and falling commodity prices resulted in credit-rating downgrades, most notably in Brazil, Ecuador, Mexico and South Africa. Investors were also concerned about the ability of some countries to service their debts, including Angola, Ecuador and Sri Lanka. Additionally, in Mexico, there were concerns over the government’s support for state-owned oil company Petróleos Mexicanos (Pemex), which the Fund holds, while political tensions in Brazil and Turkey added to problems in those markets. The pandemic made Argentina’s negotiation with its bondholders difficult, while Lebanon planned to restructure its debt after defaulting on US$1.2 billion in eurobonds in March 2020. Consequently, investment-grade assets outperformed their high-yield for most of the reporting period.

Central banks in emerging markets subsequently responded with significant interest-rate cuts. Additionally, both Brazil and Mexico established liquidity swap lines5 for U.S.-dollar liquidity. As emerging-markets governments provided stimulus to tide over the crisis, sovereign bond issuance reached record highs. As a result, short-term bonds outperformed long-term issues, and spreads widened sharply. In local-currency government bonds, in most

countries, yields in the short end of the yield curve fell further than those in the long end, as governments issued bonds to finance their COVID-19 stimulus measures. Meanwhile, most hard-currency sovereign bonds saw higher yields across the board on investors’ heightened risk-aversion. Emerging-market currencies outside of Asia declined against the U.S. dollar, with the Brazilian real and Mexican peso falling 26.7% and 20%, respectively, while the South African rand, Turkish lira and the Russian ruble declining by corresponding margins of 18.5%, 18.2% and 13.8% during the reporting period.

Global high-yield bonds outside of emerging markets delivered positive returns during the first three months of the reporting period, driven by a partial U.S.-China trade deal and improving global economic growth. The accommodative policy stances by both the European Central Bank (ECB) and the Fed continued to support risk assets. Conversely, high-yield bonds declined sharply in the second half of the reporting period as the dual shock of the COVID-19 pandemic and the collapse in oil prices rippled through the markets. Investors’ liquidity concerns intensified, resulting in a massive selloff in equity and credit markets, most notably in higher-risk high-yield debt. Spreads widened to levels seen during the GFC. While lower-quality credits underperformed, issues of higher-quality companies were not immune, as investors were forced to sell what they could, rather than what they wanted. New issuance also slowed dramatically due to the volatility. However, by April 2020, the market recovered some of the weakness in March 2020, supported by fiscal and monetary measures by governments and central banks globally. The Bloomberg Barclays Global High Yield Corporate Index (hedged into U.S. dollars),6 a global high-yield fixed-income market benchmark, rallied in April 2020, and ended the reporting period with a return of -4.36%, despite posting a return of -17% from November 1, 2019, through mid-March 2020.

Fund performance review

The Fund returned -17.2% on a net asset value basis for the six-month period ended April 30, 2020, versus the -5.2% return of its blended benchmark. The Fund’s performance was largely driven by the widespread market selloff in March 2020.

The Fund’s overweight allocation to emerging-market debt outside of Asia detracted from performance as both hard-currency and local-currency bond yields across most of these markets finished higher during the reporting period. In Latin America, the Fund’s exposure to Ecuador, Costa Rica and El Salvador hampered performance as credit-rating downgrades triggered concerns over the government’s ability to service its debt. The Fund’s underweight position in Mexico also weighed on performance, as Mexican peso-denominated bond yields moved lower. While short-duration bonds were supported by the

central bank’s rate cut, long-term bonds remained pressured by the government’s debt sale of US$6 billion to finance the COVID-19 led stimulus. Conversely, the Fund’s overweight allocation to Brazil and underweight exposure to Argentina contributed to performance, The lack of exposure to Sri Lanka and Lebanon and an underweight position in South Africa benefited Fund performance, as yields rose on investors’ higher risk- aversion. The overweight exposure to Egypt also had a positive impact on Fund performance despite the rise in yields, attributable to strong security selection. The Fund’s overweight allocation to Russia contributed to performance, as yields fell on the back of interest-rate cuts and monetary policy measures. Additionally, the Fund’s position in in US securities, which are not represented in its blended benchmark, bolstered performance for the reporting period.

The Fund’s holdings in Asian local-currency government bonds and U.S.-dollar Asian corporate debts also detracted from the Fund’s relative performance for the reporting period. While the positions in Asian local-currency government bonds recorded positive returns, credit and currency exposures hampered Fund performance. Volatility characteristics of Asian credit changed substantially, as Asian credit spreads reached levels previously seen during the European debt crisis in 2011. Investment-grade and high-yield credit spreads widened by 121 and 347 bps, respectively, which weighed on the Fund’s allocation to the asset class. Similarly, the currency effect detracted from performance as Asian currencies declined versus the U.S. dollar during the reporting period. The Thai baht, Indian rupee, Malaysian ringgit and Korean won depreciated against the U.S. dollar, while other currencies also moved lower, with the exception of the Philippine peso and the Taiwanese dollar. Consequently, the Fund’s overweight allocations to the rupee and ringgit, the underweight positions in the Philippine peso and Taiwanese dollar, and hedging positions in the baht and won hampered performance. In contrast, Fund performance was bolstered by the hedged position in the Indonesian rupiah, as well as positions in the U.S. dollar, which is not represented in the blended benchmark.

The Asian local-currency government bond market stabilized by the end of the reporting period, with bond yields somewhat anchored due to aggressive central bank monetary policy easing globally. The Fund’s positioning in rates recorded positive returns, attributable to the holdings in U.S. Treasury securities, which are not represented in the blended benchmark. The overweight allocation to India also had a positive impact on Fund performance. Conversely, the lack of exposure to China and Hong Kong and underweight positions in the Philippines, Singapore and South Korea detracted from Fund performance as yields

in these markets moved lower over the reporting period, even after factoring in some volatility in March.

The Fund’s holding in the global high-yield sector marginally outperformed those in the blended benchmark, due to positive security selection, notably in Europe. At a sector level, the Fund’s holdings in the telecommunications and media sectors contributed to performance, while long-dated energy bonds also performed well. Conversely, the Fund’s positions in the leisure, real estate and consumer-related issues weighed on performance as the pandemic significantly hampered these sectors.

The Fund’s principal investment objective is to provide high current income by investing primarily in fixed income securities. As a secondary investment objective, the Fund seeks capital appreciation, but only when consistent with its principal investment objective. Over the 6-month period, the Fund issued total distributions of $0.42 per share.

The overall impact on the Fund’s absolute performance from the use of derivatives over the reporting period was generally negative, attributable to the hedging of the U.S. interest-rate risk associated with the Fund’s leverage. This was partially offset by positive performance of other derivatives, attributable to the hedging of the Australian dollar and other non-U.S. dollar currency risks.

Outlook

The downturn in the global financial markets in the first quarter of 2020 was historic. Within the span of a few weeks, the dramatic spread of the COVID-19 pandemic across developed markets resulted in increasing containment measures, leading to a significant repricing of all asset classes. However, by early June 2020, several economies had begun to ease lockdowns and restart activities. Based on this factor, combined with sizeable global and regional fiscal stimuli, as well as the massive coordinated provision of liquidity by central banks and market stabilization programs globally, we believe that the economic growth outlook is beginning to improve, while investor sentiment is recovering. Markets have already regained a sizeable amount of the ground lost in March, as global investors attempt to add risk to their portfolios amid what they perceive as attractive valuations. While some markets, such as U.S. equities, have already regained nearly all of their losses since March, we believe that valuations in Asia remain cheap, particularly in the credit markets. Therefore, we have reallocated the Fund’s risk into Asian credit.

The Asian rates market also remains supported in a “lower-for-longer” interest-rate environment. Additionally, most governments globally

have maintained fiscal prudence over the years, providing fiscal space to fund the COVID-19-induced rescue packages. Meanwhile, trade tensions between the U.S. and China have resurfaced, but we believe that the situation may ease in the near term, as U.S. domestic issues take precedence in the run-up to the U.S. presidential election in November 2020. Asian currencies have been relatively more stable than their emerging-market and G107 counterparts, supported by better external balances8 and high foreign-exchange reserves.

In our view, the outlook for emerging markets outside of Asia remains uncertain even as economies expand policy support in an effort to stimulate growth. We believe that underwhelming private investment due to uncertain domestic political environments, along with tighter fiscal conditions, along with weak commodity prices for commodity-exporting countries, will drive much of the weakness in growth in the Asia-Pacific region. Additionally, with financing costs at all-time lows, governments could turn to the market to bridge funding gaps, resulting in greater supply pressures. Nonetheless, governments and central banks worldwide have responded with much-needed rescue measures, which in our opinion are marginally improving the outlook, coinciding with some of the record amounts of capital that left emerging markets attempting to buy back into the market.

We believe that global high-yield companies are vulnerable in this environment, especially those which are highly leveraged. Several companies have reduced their earnings forecasts and dividends. Nevertheless, following the initial selloff in March 2020, we believe that the performance of high-quality companies will improve as investors focus on the depth of the global recession and the more protracted recovery. The high-yield fixed-income asset class historically has outperformed during economic recoveries. Moreover, in our view valuations are still attractive for investors with a long-term investment horizon.

The Fund’s blended benchmark comprises 10% Bank of America Merrill Lynch (BofA ML) All Maturity Australia Government Index; 25% Bank of America Merrill Lynch Global High Yield Constrained Index (hedged into U.S. dollars); 35% J.P. Morgan EMBI Global Diversified Index; 5% BofA ML New Zealand Government Index; and 25% Markit iBoxx Asia Government Index. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected.

The ICE BofA ML All Maturity Australian Government Index tracks the performance of large, Australian dollar-denominated government debt issued in the Australian domestic market, including sovereign and quasi-government securities.

The ICE BofA ML Global High Yield Constrained Index tracks the performance of U.S. dollar-, Canadian dollar-, British pound- and euro-denominated below-investment-grade corporate debt publicly issued in the major domestic or eurobond markets.

The J.P. Morgan EMBI Global Diversified Index is a comprehensive global local emerging markets index comprising liquid, fixed-rate, domestic currency government bonds.

The Markit iBoxx Asia Government Index tracks the performance of local currency-denominated sovereign and quasi sovereign debt from 10 Asian countries territories.

Loan facility and the use of leverage

The Fund utilizes leverage to seek to increase the yield for its shareholders. The amounts borrowed from the Fund’s loan facility may be invested to seek to return higher rates than the rates in the Fund’s portfolio. However, the cost of leverage could exceed the income earned by the Fund on the proceeds of such leverage. To the extent that the Fund is unable to invest the proceeds from the use of leverage in assets which pay interest at a rate which exceeds the rate paid on the leverage, the yield on the Fund’s common stock will decrease. In addition, in the event of a general market decline in the value of assets in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage. Non-recurring expenses in connection with the implementation of the loan facility will reduce the Fund’s performance.

The Fund’s leveraged capital structure creates special risks not associated with unleveraged funds having similar investment objectives and policies. The funds borrowed pursuant to the loan facility may constitute a substantial lien and burden by reason of their prior claim against the income of the Fund and against the net assets of the Fund in liquidation. The Fund is not permitted to declare dividends or other distributions in the event of default under the loan facility. In the event of default under the loan facility, the lender has the right to cause a liquidation of the collateral (i.e., sell portfolio securities and other assets of the Fund) and, if any such default is not cured, the lender may be able to control the liquidation as well. A liquidation of the Fund’s collateral assets in an event of default, or a voluntary paydown of the loan facility in order to avoid an event of default, would typically involve administrative expenses and sometimes penalties. Additionally, such liquidations often involve selling off of portions of the Fund’s assets at inopportune times which can result in losses when markets are unfavorable. The loan facility has a term of 3 years and is not a perpetual form of leverage; there

can be no assurance that the loan facility will be available for renewal on acceptable terms, if at all.

The credit agreement governing the loan facility includes usual and customary covenants for this type of transaction. These covenants impose on the Fund asset coverage requirements, Fund composition requirements and limits on certain investments, such as illiquid investments, which are more stringent than those imposed on the Fund by the 1940 Act. The covenants or guidelines could impede management of the Fund from fully managing the Fund’s portfolio in accordance with the Fund’s investment objective and policies. Furthermore, non-compliance with such covenants or the occurrence of other events could lead to the cancellation of the loan facility. The covenants also include a requirement that the Fund maintain net assets of no less than $25,000,000.

Prices and availability of leverage are extremely volatile in the current market environment. The Board regularly reviews the use of leverage by the Fund and may explore other forms of leverage. The Fund is authorized to use reverse repurchase agreements as another form of leverage. A reverse repurchase agreement involves the sale of a security, with an agreement to repurchase the same or substantially similar securities at an agreed upon price and date. Whether such a transaction produces a gain for the Fund depends upon the costs of the agreements and the income and gains of the securities purchased with the proceeds received from the sale of the security. If the income and gains on the securities purchased fail to exceed the costs, the Fund’s NAV will decline faster than otherwise would be the case. Reverse repurchase agreements, as with any leveraging techniques, may increase the Fund’s return; however, such transactions also increase the Fund’s risks in down markets. In 2017, the head of the United Kingdom’s Financial Conduct Authority announced a desire to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement reference rate. As such, the potential effect of a transition away from LIBOR on the Fund’s payment obligations under its leveraged capital structure cannot yet be determined.

Interest rate swaps

The Fund may enter into interest rate swaps to efficiently gain interest rate exposure and hedge interest rate risk. As of April 30, 2020, the Fund held interest rate swap agreements with an aggregate notional amount of $16,300,000 which represented 100% of the Fund’s total borrowings. Under the terms of the agreements currently in effect, the Fund either receives a floating rate of interest (three month USD-LIBOR BBA rate) and pays fixed rates of interest for the terms or pays a floating

rate of interest and receives a fixed rate of interest for the terms, and based upon the notional amounts set forth below:

A significant risk associated with interest rate swaps is the risk that the counterparty may default or file for bankruptcy, in which case the Fund would bear the risk of loss of the amount expected to be received under the swap agreements. There can be no assurance that the Fund will have an interest rate swap in place at any given time nor can there be any assurance that, if an interest rate swap is in place, it will be successful in hedging the Fund’s interest rate risk with respect to the loan facility.

Risk considerations

Past performance is not an indication of future results.

International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally heightened for emerging market investments. Concentrating investments in the Asia-Pacific region subjects the Fund to more volatility and greater risk of loss than geographically diverse funds.

Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).

Aberdeen Standard Investments (Asia) Limited