Still a Buy, But in Limited Amounts

Article Excerpt

ABERDEEN ASIA-PACIFIC INCOME INVESTMENT $7.10 (Toronto symbol: FAP) (CWA Rating: Income) is a closed-end fund that invests mainly in Australian debt instruments. It also invests in U.S. dollar denominated bonds of Asian countries and in Asian bonds. Right now it has 26.2% of its assets in Asian currency bonds. The fund has net assets of $541.7 million. Its units now trade at an 8% discount to net asset value. Aberdeen Asia-Pacific pays a monthly dividend of $0.06 a unit for a high current yield of 10.1%. Note that these dividends do not qualify for the Canadian dividend tax credit. They are not subject to any withholding taxes, however. Aberdeen has moved down lately along with uncertainty in global bond and credit markets plus a much higher Canadian dollar (which lowers the value of foreign bonds). Aberdeen Asia-Pacific is a buy, in limited amounts only. only…

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