Washington, D.C. 20549
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to shareholders
pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.
(b) Not applicable.
Letter to Shareholders (unaudited)
Dear Shareholder,
We present this Semi-Annual Report
which covers the activities of Aberdeen Global Dynamic Dividend Fund (the "Fund") for the six-month period ended April 30,
2021. The Fund's investment objective is to seek high current dividend income more than 50% of which qualifies as "qualified dividend
income eligible" for the reduced Federal income tax rates created by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The Fund also focuses on long-term growth of capital as a secondary investment objective.
Total Investment Return1
For the six-month period ended April
30, 2021, the total return to shareholders of the Fund based on the net asset value ("NAV") and market price of the Fund are
as follows:
NAV2,3
|
|
31.4%
|
Market
Price2
|
|
40.0%
|
MSCI
All Country World Index (Net Dividends)4
|
|
28.3%
|
For more information about Fund performance, please visit the Fund on
the web at www.aberdeenagd.com. Here, you can view quarterly commentary on the Fund's performance, monthly fact sheets, distribution and
performance information, and other Fund literature.
NAV, Market Price and Discount
The below table represents comparison from current six-month period end
to prior fiscal year end of Market Price to NAV and associated Discount.
|
|
NAV
|
|
Closing
Market
Price
|
|
Discount
|
4/30/2021
|
|
$12.88
|
|
$11.59
|
|
10.02%
|
10/31/2020
|
|
$10.16
|
|
$8.58
|
|
15.55%
|
During the six-month
period ended April 30, 2021, the Fund's NAV was within a range of $10.29 to $13.00 and the Fund's market price was within a range of
$8.69 to $11.64. During the six-month period ended April 30, 2021, the Fund's shares traded within a range of a discount of 9.9% to 15.5%.
Distribution Policy
Distributions
to common shareholders for the twelve months ended April 30, 2021 totaled $0.78 per share. Based on the market price of
$11.59 on April
30, 2021, the distribution rate over the twelve-month period ended April 30, 2021 was 6.7%. Based on the NAV of $12.88 on April 30, 2021,
the distribution rate over the twelve month period ended April 30, 2021 was 6.1%. 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, 2021
and June 9, 2021, the Fund announced that it would pay on May 28, 2021 and June 30, 2021, respectively, a distribution of U.S. $0.065
per share to all shareholders of record as of May 21, 2021 and June 23, 2021, 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 of Trustees of the Fund's (the "Board") quarterly meetings, unless market conditions require an earlier
evaluation.
Open Market Repurchase Program
On June 13, 2018,
the Board approved a share repurchase program ("Program") for the Fund. The Program allows the Fund to purchase, in the open
market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund's investment
adviser and subject to market conditions and investment considerations. The Fund reports repurchase activity on the Fund's website on
a monthly basis. For the six-month period ended April 30, 2021, the Fund did not repurchase any shares through the Program.
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 semi-annual 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. These reports are
available on the SEC's website at sec.gov. The Fund makes the information available to shareholders upon request and without charge by
calling Investor Relations toll-free at 1-800-522-5465.
|
1
|
Past performance is no guarantee of future results. Investment
returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may
be lower or higher than the performance quoted. Net asset value return data include investment management fees, custodial charges and
administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions.
|
|
2
|
Assuming the reinvestment of dividends and distributions.
|
|
3
|
The Fund's total return is based on the reported net asset value
("NAV") for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial
statement rounding or adjustments.
|
|
4
|
The Morgan Stanley Capital International (MSCI) All Country
(AC) World Index is an unmanaged index considered representative of developed and emerging market stock markets. Indexes are unmanaged
and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
|
Aberdeen
Global Dynamic Dividend Fund
|
1
|
Letter to Shareholders (unaudited)
(concluded)
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 12 month period ended June 30 is available by August 31 of the relevant year:
(1) without charge, upon request, by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC's website at sec.gov.
COVID-19
The 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 periods of time. Some interest rates are very low and in some cases yields are negative. Some sectors of the economy and individual
issuers have experienced particularly large losses. Although some markets have rebounded, others have not. These circumstances may recur
or continue for an extended period of time, and may continue to affect adversely the value and liquidity of the Fund's investments. The
ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and 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 vary from market to market and, in some cases, may 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. In 2017,
the head of the United Kingdom's Financial Conduct Authority ("FCA") announced a desire to phase out the use of LIBOR by the
end of 2021. However, subsequent announcements by the FCA, the LIBOR administrator and other regulators indicate that it is possible that
the most widely used LIBOR rates may continue until mid-2023. It is anticipated that LIBOR ultimately will be discontinued or the regulator
will announce that it is no longer sufficiently robust to be representative of its underlying market around that time. 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 the revolving credit facility cannot yet be determined.
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.
Investor Relations Information
As part of Aberdeen Standard's commitment to shareholders, we invite
you to visit the Fund on the web at www.aberdeenagd.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and
performance information, and other Fund literature.
Enroll in Aberdeen Standard's email services and be among the first to
receive the latest closed-end fund news, announcements, videos and other information. In addition, you can receive electronic versions
of important Fund documents, including annual reports, semi-annual reports, prospectuses, and proxy statements. Sign up today at https://www.aberdeenstandard.com/en-us/cefinvestorcenter/contact-us/preferences.
Contact Us:
• Visit: https://www.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
All amounts are U.S. Dollars unless otherwise
stated.
2
|
Aberdeen Global Dynamic Dividend Fund
|
Total Investment Returns (unaudited)
The following table summarizes the average annual Fund performance compared
to the Fund's benchmark, the MSCI All Country (AC) World Index, for the six-month, 1-year, 3-year, 5-year and 10-year periods ended April
30, 2021.
|
|
6
Months
|
|
1
Year
|
|
3
Years
|
|
5
Years
|
|
10
Years
|
Net
Asset Value ("NAV")
|
|
31.4%
|
|
45.6%
|
|
12.2%
|
|
13.6%
|
|
7.4%
|
Market
Price
|
|
40.0%
|
|
52.9%
|
|
11.6%
|
|
14.9%
|
|
6.2%
|
MSCI
AC World Index (Net Dividends)
|
|
28.3%
|
|
45.7%
|
|
13.3%
|
|
13.9%
|
|
9.1%
|
Aberdeen Asset Managers Limited assumed responsibility for the management
of the Fund as investment adviser on May 7, 2018. Performance prior to this date reflects the performance of an unaffiliated investment
adviser.
Effective May 4, 2018, Aberdeen Asset Managers Limited entered into
a written contract with the Fund to waive fees or limit expenses. This contract may not be terminated before June 30, 2021. Absent such
waivers and/or reimbursements, the Fund's returns would be lower. See Note 3 in the Notes to Financial Statements.
Returns represent past performance. Total investment return at NAV
is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant
to the dividend reinvestment program. All return data at NAV includes fees and expenses charged to the Fund, which are listed in the Fund's
Statement of Operations under "Expenses". Total investment return based on market value is based on changes in the market price
at which the Fund's shares traded on the NYSE during the period and assumes reinvestment of dividends and distributions, if any, at market
prices pursuant to the dividend reinvestment program. The Fund's total investment return is based on the reported NAV or market price,
as applicable, at the financial reporting period end. Because the Fund's shares trade in the stock market based on investor demand, the
Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past
performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a
shareholder would pay on distributions received from the Fund. The current performance of the Fund may be lower or higher than the figures
shown. The Fund's yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is
available at www.aberdeenagd.com or by calling 800-522-5465.
The annualized net operating expense ratio, excluding fee waivers,
based on the six-month period ended April 30, 2021 was 1.34%. The annualized net operating expense ratio, net of fee waivers, based on
the six-month period ended April 30, 2021 was 1.18%. The annualized net operating expense ratio, net of fee waivers and excluding interest
expense, based on the six-month period ended April 30, 2021 was 1.16%.
Aberdeen
Global Dynamic Dividend Fund
|
3
|
Portfolio Summary (unaudited)
The following table summarizes the sector composition of the Fund's portfolio,
in S&P Global Inc.'s Global Industry Classification Standard ("GICS") Sectors, expressed as a percentage of net assets as
of April 30, 2021.
Sectors
|
|
As a Percentage of Net Assets
|
Information Technology
|
|
16.8%
|
Financials
|
|
16.5%
|
Health Care
|
|
11.4%
|
Industrials
|
|
10.3%
|
Consumer Discretionary
|
|
9.8%
|
Consumer Staples
|
|
9.4%
|
Utilities
|
|
7.4%
|
Communication Services
|
|
6.5%
|
Materials
|
|
5.1%
|
Energy
|
|
3.6%
|
Real Estate
|
|
3.6%
|
Liabilities in Excess of Other Assets
|
|
(0.4)%
|
|
|
100.0%
|
The following chart summarizes the composition of the Fund's portfolio
by geographic classification expressed as a percentage of net assets as of April 30, 2021:
Countries
|
|
As
a Percentage of Net Assets
|
United
States
|
|
49.9%
|
France
|
|
7.3%
|
Germany
|
|
6.3%
|
United
Kingdom
|
|
6.0%
|
Switzerland
|
|
3.3%
|
China
|
|
3.1%
|
Canada
|
|
2.6%
|
South
Korea
|
|
2.6%
|
Netherlands
|
|
2.3%
|
Brazil
|
|
2.1%
|
Other
|
|
14.5%
|
|
|
100.0%
|
Top Ten Equity Holdings (unaudited)
The following were the Fund's top ten equity holdings as of April 30,
2021:
Name of Security
|
|
As
a Percentage of Net Assets
|
Apple, Inc.
|
|
2.9%
|
Microsoft Corp.
|
|
2.1%
|
Samsung Electronics Co. Ltd.
|
|
1.9%
|
RWE AG
|
|
1.8%
|
Alphabet, Inc., Class C
|
|
1.8%
|
AbbVie, Inc.
|
|
1.6%
|
Target Corp.
|
|
1.6%
|
Enbridge, Inc.
|
|
1.6%
|
Broadcom, Inc.
|
|
1.5%
|
Lowe's Cos., Inc.
|
|
1.5%
|
4
|
Aberdeen Global Dynamic Dividend Fund
|
Portfolio of Investments (unaudited)
As of April 30, 2021
|
|
Shares
|
|
|
Value
|
|
COMMON
STOCKS—98.5%
|
AUSTRALIA—1.2%
|
Materials—1.2%
|
|
|
|
|
|
|
|
|
Rio
Tinto PLC, ADR
|
|
|
22,215
|
|
|
$
|
1,889,608
|
|
BRAZIL—2.1%
|
|
|
|
|
|
|
|
|
Industrials—0.9%
|
|
|
|
|
|
|
|
|
CCR
SA
|
|
|
679,200
|
|
|
|
1,505,429
|
|
Materials—1.2%
|
|
|
|
|
|
|
|
|
Vale
SA, ADR
|
|
|
97,600
|
|
|
|
1,963,712
|
|
Total
Brazil
|
|
|
|
|
|
|
3,469,141
|
|
CANADA—2.6%
|
|
|
|
|
|
|
|
|
Energy—1.6%
|
|
|
|
|
|
|
|
|
Enbridge,
Inc.
|
|
|
65,700
|
|
|
|
2,534,049
|
|
Materials—1.0%
|
|
|
|
|
|
|
|
|
Barrick
Gold Corp.
|
|
|
80,300
|
|
|
|
1,706,375
|
|
Total
Canada
|
|
|
|
|
|
|
4,240,424
|
|
CHINA—3.1%
|
|
|
|
|
|
|
|
|
Communication Services—0.9%
|
|
|
|
|
|
|
|
|
Tencent
Holdings Ltd.
|
|
|
19,100
|
|
|
|
1,523,645
|
|
Consumer Discretionary—1.2%
|
|
|
|
|
|
|
|
|
Shenzhou
International Group Holdings Ltd.
|
|
|
86,600
|
|
|
|
1,905,113
|
|
Financials—1.0%
|
|
|
|
|
|
|
|
|
Ping
An Insurance Group Co. of China Ltd., H Shares
|
|
|
140,500
|
|
|
|
1,531,768
|
|
Total
China
|
|
|
|
|
|
|
4,960,526
|
|
DENMARK—1.4%
|
|
|
|
|
|
|
|
|
Financials—1.4%
|
|
|
|
|
|
|
|
|
Tryg A/S
|
|
|
99,966
|
|
|
|
2,285,912
|
|
FINLAND—1.2%
|
|
|
|
|
|
|
|
|
Information Technology—0.6%
|
|
|
|
|
|
|
|
|
Nokia
OYJ(a)
|
|
|
214,106
|
|
|
|
1,014,210
|
|
Utilities—0.6%
|
|
|
|
|
|
|
|
|
Fortum
OYJ
|
|
|
37,500
|
|
|
|
985,455
|
|
Total
Finland
|
|
|
|
|
|
|
1,999,665
|
|
FRANCE—7.3%
|
|
|
|
|
|
|
|
|
Consumer Discretionary—1.1%
|
|
|
|
|
|
|
|
|
LVMH
Moet Hennessy Louis Vuitton SE
|
|
|
2,400
|
|
|
|
1,808,040
|
|
Consumer Staples—1.0%
|
|
|
|
|
|
|
|
|
Danone
SA
|
|
|
22,000
|
|
|
|
1,552,968
|
|
Energy—1.0%
|
|
|
|
|
|
|
|
|
TOTAL
SE, ADR(b)
|
|
|
37,200
|
|
|
|
1,647,216
|
|
Financials—0.8%
|
|
|
|
|
|
|
|
|
AXA
SA
|
|
|
47,500
|
|
|
|
1,341,639
|
|
Aberdeen
Global Dynamic Dividend Fund
|
5
|
Portfolio of Investments (unaudited)
(continued)
As of April 30, 2021
|
|
Shares
|
|
|
Value
|
|
COMMON
STOCKS (continued)
|
FRANCE
(continued)
|
Health
Care—1.1%
|
Sanofi
|
|
|
15,900
|
|
|
$
|
1,666,992
|
|
Industrials—2.3%
|
|
|
|
|
|
|
|
|
Alstom
SA(a)
|
|
|
30,200
|
|
|
|
1,649,270
|
|
Bouygues
SA
|
|
|
6,962
|
|
|
|
298,360
|
|
Schneider
Electric SE
|
|
|
11,100
|
|
|
|
1,771,069
|
|
|
|
|
|
|
|
|
3,718,699
|
|
Total
France
|
|
|
|
|
|
|
11,735,554
|
|
GERMANY—6.3%
|
|
|
|
|
|
|
|
|
Financials—1.8%
|
|
|
|
|
|
|
|
|
Deutsche
Boerse AG
|
|
|
10,100
|
|
|
|
1,740,485
|
|
Muenchener
Rueckversicherungs-Gesellschaft AG in Muenchen
|
|
|
3,915
|
|
|
|
1,131,177
|
|
|
|
|
|
|
|
|
2,871,662
|
|
Health Care—0.7%
|
|
|
|
|
|
|
|
|
Bayer
AG
|
|
|
18,200
|
|
|
|
1,177,691
|
|
Information Technology—1.0%
|
|
|
|
|
|
|
|
|
Infineon
Technologies AG
|
|
|
41,400
|
|
|
|
1,660,162
|
|
Materials—1.0%
|
|
|
|
|
|
|
|
|
Linde
PLC(a)
|
|
|
5,700
|
|
|
|
1,629,271
|
|
Utilities—1.8%
|
|
|
|
|
|
|
|
|
RWE
AG
|
|
|
76,429
|
|
|
|
2,902,151
|
|
Total
Germany
|
|
|
|
|
|
|
10,240,937
|
|
HONG KONG—1.0%
|
|
|
|
|
|
|
|
|
Financials—1.0%
|
|
|
|
|
|
|
|
|
Hong
Kong Exchanges & Clearing Ltd.
|
|
|
27,800
|
|
|
|
1,676,646
|
|
INDONESIA—1.0%
|
|
|
|
|
|
|
|
|
Communication Services—1.0%
|
|
|
|
|
|
|
|
|
Telkom
Indonesia Persero Tbk PT
|
|
|
7,397,500
|
|
|
|
1,634,438
|
|
ITALY—1.2%
|
|
|
|
|
|
|
|
|
Utilities—1.2%
|
|
|
|
|
|
|
|
|
Enel
SpA
|
|
|
189,100
|
|
|
|
1,877,636
|
|
JAPAN—1.9%
|
|
|
|
|
|
|
|
|
Financials—0.8%
|
|
|
|
|
|
|
|
|
Mitsubishi
UFJ Financial Group, Inc.
|
|
|
231,200
|
|
|
|
1,230,006
|
|
Real Estate—1.1%
|
|
|
|
|
|
|
|
|
GLP
J-REIT
|
|
|
1,100
|
|
|
|
1,843,902
|
|
Total
Japan
|
|
|
|
|
|
|
3,073,908
|
|
NETHERLANDS—2.3%
|
|
|
|
|
|
|
|
|
Consumer Staples—1.3%
|
|
|
|
|
|
|
|
|
Heineken
NV
|
|
|
18,000
|
|
|
|
2,087,990
|
|
6
|
Aberdeen Global Dynamic Dividend Fund
|
Portfolio of Investments (unaudited)
(continued)
As of April 30, 2021
|
|
Shares
|
|
|
Value
|
|
COMMON
STOCKS (continued)
|
NETHERLANDS
(continued)
|
Information
Technology—1.0%
|
ASML
Holding NV
|
|
|
2,600
|
|
|
$
|
1,687,768
|
|
Total
Netherlands
|
|
|
|
|
|
|
3,775,758
|
|
NORWAY—1.0%
|
|
|
|
|
|
|
|
|
Communication Services—1.0%
|
|
|
|
|
|
|
|
|
Telenor
ASA
|
|
|
86,200
|
|
|
|
1,535,651
|
|
SINGAPORE—1.1%
|
|
|
|
|
|
|
|
|
Financials—1.1%
|
|
|
|
|
|
|
|
|
Oversea-Chinese
Banking Corp. Ltd.
|
|
|
194,582
|
|
|
|
1,778,776
|
|
SOUTH KOREA—0.7%
|
|
|
|
|
|
|
|
|
Materials—0.7%
|
|
|
|
|
|
|
|
|
LG
Chem Ltd.
|
|
|
1,400
|
|
|
|
1,168,702
|
|
SPAIN—1.2%
|
|
|
|
|
|
|
|
|
Industrials—1.2%
|
|
|
|
|
|
|
|
|
Ferrovial
SA
|
|
|
66,811
|
|
|
|
1,896,831
|
|
SWEDEN—1.3%
|
|
|
|
|
|
|
|
|
Consumer Staples—0.8%
|
|
|
|
|
|
|
|
|
Essity
AB, Class B
|
|
|
37,300
|
|
|
|
1,217,397
|
|
Industrials—0.5%
|
|
|
|
|
|
|
|
|
Atlas
Copco AB, A Shares
|
|
|
13,900
|
|
|
|
842,897
|
|
Total
Sweden
|
|
|
|
|
|
|
2,060,294
|
|
SWITZERLAND—3.3%
|
|
|
|
|
|
|
|
|
Consumer Staples—1.2%
|
|
|
|
|
|
|
|
|
Nestle
SA
|
|
|
15,900
|
|
|
|
1,897,358
|
|
Financials—1.1%
|
|
|
|
|
|
|
|
|
Zurich
Insurance Group AG
|
|
|
4,600
|
|
|
|
1,887,189
|
|
Health Care—1.0%
|
|
|
|
|
|
|
|
|
Roche
Holding AG
|
|
|
4,900
|
|
|
|
1,598,162
|
|
Total
Switzerland
|
|
|
|
|
|
|
5,382,709
|
|
TAIWAN—1.4%
|
|
|
|
|
|
|
|
|
Information Technology—1.4%
|
|
|
|
|
|
|
|
|
Taiwan
Semiconductor Manufacturing Co. Ltd.
|
|
|
104,000
|
|
|
|
2,190,199
|
|
UNITED KINGDOM—6.0%
|
|
|
|
|
|
|
|
|
Communication Services—1.4%
|
|
|
|
|
|
|
|
|
Vodafone
Group PLC, ADR
|
|
|
120,200
|
|
|
|
2,277,790
|
|
Consumer Staples—0.9%
|
|
|
|
|
|
|
|
|
Unilever
PLC
|
|
|
23,500
|
|
|
|
1,372,524
|
|
Financials—0.5%
|
|
|
|
|
|
|
|
|
Allfunds
Group PLC(a)
|
|
|
48,007
|
|
|
|
806,875
|
|
Aberdeen
Global Dynamic Dividend Fund
|
7
|
Portfolio of Investments (unaudited)
(continued)
As of April 30, 2021
|
|
Shares
|
|
|
Value
|
|
COMMON
STOCKS (continued)
|
UNITED
KINGDOM (continued)
|
Health
Care—2.4%
|
AstraZeneca
PLC, ADR
|
|
|
39,300
|
|
|
$
|
2,085,651
|
|
Dechra
Pharmaceuticals PLC
|
|
|
32,300
|
|
|
|
1,799,483
|
|
|
|
|
|
|
|
|
3,885,134
|
|
Industrials—0.8%
|
|
|
|
|
|
|
|
|
Melrose
Industries PLC
|
|
|
589,966
|
|
|
|
1,328,128
|
|
Total
United Kingdom
|
|
|
|
|
|
|
9,670,451
|
|
UNITED STATES—49.9%
|
|
|
|
|
|
|
|
|
Communication Services—2.2%
|
|
|
|
|
|
|
|
|
Alphabet,
Inc., Class C(a)(b)
|
|
|
1,200
|
|
|
|
2,892,144
|
|
Cineworld
Group PLC(a)
|
|
|
536,100
|
|
|
|
716,624
|
|
|
|
|
|
|
|
|
3,608,768
|
|
Consumer Discretionary—7.5%
|
|
|
|
|
|
|
|
|
Aptiv
PLC(a)(b)
|
|
|
11,600
|
|
|
|
1,669,124
|
|
Genuine
Parts Co.
|
|
|
16,200
|
|
|
|
2,024,514
|
|
Las
Vegas Sands Corp.(a)
|
|
|
26,000
|
|
|
|
1,592,760
|
|
Lowe's
Cos., Inc.(b)
|
|
|
12,500
|
|
|
|
2,453,125
|
|
Target
Corp.(b)
|
|
|
12,400
|
|
|
|
2,570,024
|
|
TJX
Cos., Inc. (The)(b)
|
|
|
25,000
|
|
|
|
1,775,000
|
|
|
|
|
|
|
|
|
12,084,547
|
|
Consumer Staples—4.2%
|
|
|
|
|
|
|
|
|
Coca-Cola
Co. (The)
|
|
|
31,300
|
|
|
|
1,689,574
|
|
Kraft
Heinz Co. (The)
|
|
|
39,000
|
|
|
|
1,610,310
|
|
Mondelez
International, Inc., Class A(b)
|
|
|
31,300
|
|
|
|
1,903,353
|
|
PepsiCo,
Inc.
|
|
|
11,500
|
|
|
|
1,657,840
|
|
|
|
|
|
|
|
|
6,861,077
|
|
Energy—1.0%
|
|
|
|
|
|
|
|
|
Williams
Cos., Inc. (The)
|
|
|
70,600
|
|
|
|
1,719,816
|
|
Financials—7.0%
|
|
|
|
|
|
|
|
|
Bank
of America Corp.(b)
|
|
|
50,300
|
|
|
|
2,038,659
|
|
Blackstone
Group, Inc. (The), Class A
|
|
|
18,200
|
|
|
|
1,610,518
|
|
Charles
Schwab Corp. (The)
|
|
|
29,500
|
|
|
|
2,076,800
|
|
Goldman
Sachs Group, Inc. (The)
|
|
|
6,500
|
|
|
|
2,264,925
|
|
Huntington
Bancshares, Inc.
|
|
|
95,500
|
|
|
|
1,463,060
|
|
JPMorgan
Chase & Co.
|
|
|
11,900
|
|
|
|
1,830,339
|
|
|
|
|
|
|
|
|
11,284,301
|
|
Health Care—6.2%
|
|
|
|
|
|
|
|
|
AbbVie,
Inc.
|
|
|
23,296
|
|
|
|
2,597,504
|
|
Bristol-Myers
Squibb Co.(b)
|
|
|
27,500
|
|
|
|
1,716,550
|
|
Eli
Lilly & Co.
|
|
|
8,900
|
|
|
|
1,626,653
|
|
Medtronic
PLC(b)
|
|
|
15,600
|
|
|
|
2,042,352
|
|
UnitedHealth
Group, Inc.(b)
|
|
|
5,000
|
|
|
|
1,994,000
|
|
|
|
|
|
|
|
|
9,977,059
|
|
8
|
Aberdeen Global Dynamic Dividend Fund
|
Portfolio of Investments (unaudited)
(continued)
As of April 30, 2021
|
|
Shares
|
|
|
Value
|
|
COMMON
STOCKS (continued)
|
UNITED
STATES (continued)
|
Industrials—4.6%
|
|
|
|
|
|
|
|
|
Aerojet
Rocketdyne Holdings, Inc.
|
|
|
32,800
|
|
|
$
|
1,532,416
|
|
FedEx
Corp.(b)
|
|
|
7,800
|
|
|
|
2,264,418
|
|
Lockheed
Martin Corp.
|
|
|
4,300
|
|
|
|
1,636,408
|
|
Norfolk
Southern Corp.
|
|
|
7,000
|
|
|
|
1,954,680
|
|
|
|
|
|
|
|
|
7,387,922
|
|
Information
Technology—10.9%
|
|
|
|
|
|
|
|
|
Apple,
Inc.(b)
|
|
|
35,900
|
|
|
|
4,719,414
|
|
Avast
PLC(c)
|
|
|
295,900
|
|
|
|
1,952,145
|
|
Broadcom,
Inc.(b)
|
|
|
5,400
|
|
|
|
2,463,480
|
|
Cisco
Systems, Inc.
|
|
|
33,300
|
|
|
|
1,695,303
|
|
Fidelity
National Information Services, Inc.
|
|
|
12,100
|
|
|
|
1,850,090
|
|
Intel
Corp.(b)
|
|
|
27,000
|
|
|
|
1,553,310
|
|
Microsoft
Corp.(b)
|
|
|
13,400
|
|
|
|
3,379,212
|
|
|
|
|
|
|
|
|
17,612,954
|
|
Real
Estate—2.5%
|
|
|
|
|
|
|
|
|
American
Tower Corp., REIT
|
|
|
7,500
|
|
|
|
1,910,775
|
|
Digital
Realty Trust, Inc.(b)
|
|
|
10,300
|
|
|
|
1,589,393
|
|
GEO
Group, Inc. (The), REIT
|
|
|
90,500
|
|
|
|
498,655
|
|
|
|
|
|
|
|
|
3,998,823
|
|
Utilities—3.8%
|
|
|
|
|
|
|
|
|
Clearway
Energy, Inc., Class A
|
|
|
40,800
|
|
|
|
1,084,464
|
|
CMS
Energy Corp.(b)
|
|
|
28,200
|
|
|
|
1,815,798
|
|
FirstEnergy
Corp.
|
|
|
36,100
|
|
|
|
1,368,912
|
|
NextEra
Energy, Inc.(b)
|
|
|
24,400
|
|
|
|
1,891,244
|
|
|
|
|
|
|
|
|
6,160,418
|
|
Total
United States
|
|
|
|
|
|
|
80,695,685
|
|
Total
Common Stocks
|
|
|
|
|
|
|
159,239,451
|
|
PREFERRED
STOCKS—1.9%
|
|
|
|
|
|
|
|
|
SOUTH
KOREA—1.9%
|
|
|
|
|
|
|
|
|
Information
Technology—1.9%
|
|
|
|
|
|
|
|
|
Samsung
Electronics Co. Ltd.
|
|
|
45,600
|
|
|
|
2,993,839
|
|
Total
Preferred Stocks
|
|
|
|
|
|
|
2,993,839
|
|
Total
Investments—100.4% (cost $119,341,190)(d)
|
|
|
|
|
|
|
162,233,290
|
|
Liabilities
in Excess of Other Assets—(0.4)%
|
|
|
|
|
|
|
(605,380
|
)
|
Net
Assets—100.0%
|
|
|
|
|
|
$
|
161,627,910
|
|
Aberdeen
Global Dynamic Dividend Fund
|
9
|
Portfolio of Investments (unaudited)
(concluded)
As of April 30, 2021
(a) Non-income producing security.
(b) All or a portion of the security has been designated as
collateral for the line of credit.
(c) Denotes a security issued under Regulation S or Rule 144A.
(d) See accompanying Notes to Financial Statements for tax
unrealized appreciation/(depreciation) of securities.
ADR American Depositary Receipt
PLC Public Limited Company
REIT Real Estate Investment Trust
At April 30, 2021, the Fund's open forward foreign currency exchange
contracts were as follows:
Sale Contracts
Settlement Date
|
|
Counterparty
|
|
Amount
Purchased
|
|
Amount
Sold
|
|
Fair Value
|
|
|
Unrealized
Depreciation
|
|
United States Dollar/Euro
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
07/14/2021
|
|
State Street Bank and Trust
|
|
USD 3,216,503
|
|
EUR 2,700,000
|
|
$3,250,822
|
|
|
$(34,319
|
)
|
See Notes to Financial Statements.
10
|
Aberdeen Global Dynamic Dividend Fund
|
Statement of Assets and Liabilities
(unaudited)
As of April 30, 2021
Assets
|
Investments, at value (cost $119,341,190)
|
|
$
|
162,233,290
|
|
Foreign currency, at value (cost $1,515,390)
|
|
|
1,510,960
|
|
Receivable for investments sold
|
|
|
3,662,813
|
|
Interest and dividends receivable
|
|
|
588,937
|
|
Tax reclaim receivable
|
|
|
652,319
|
|
Prepaid expenses
|
|
|
12,639
|
|
Total assets
|
|
|
168,660,958
|
|
Liabilities
|
|
|
|
|
Line of credit payable (Note 6)
|
|
|
5,130,563
|
|
Payable for investments purchased
|
|
|
1,615,205
|
|
Investment management fees payable (Note 3)
|
|
|
112,230
|
|
Unrealized depreciation on forward foreign currency exchange contracts
|
|
|
34,319
|
|
Administration fees payable (Note 3)
|
|
|
10,553
|
|
Investor relations fees payable (Note 3)
|
|
|
9,481
|
|
Interest expense on line of credit
|
|
|
4,134
|
|
Other accrued expenses
|
|
|
116,563
|
|
Total liabilities
|
|
|
7,033,048
|
|
|
|
|
|
|
Net Assets
|
|
$
|
161,627,910
|
|
Composition of Net Assets
|
|
|
|
|
Paid-in capital in excess of par
|
|
$
|
134,142,569
|
|
Distributable earnings
|
|
|
27,485,341
|
|
Net Assets
|
|
$
|
161,627,910
|
|
Net asset value per share based on 12,549,582 shares issued and outstanding
|
|
$
|
12.88
|
|
See Notes to Financial Statements.
Aberdeen
Global Dynamic Dividend Fund
|
11
|
Statement of Operations (unaudited)
For
the Six-Month Period Ended April 30, 2021
Net Investment Income:
|
|
Income
|
Dividends and other income (net of foreign withholding taxes of $273,125)
|
|
$
|
7,999,913
|
|
Total Investment Income
|
|
|
7,999,913
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Investment management fee (Note 3)
|
|
|
754,266
|
|
Administration fee (Note 3)
|
|
|
60,341
|
|
Reports to shareholders and proxy solicitation
|
|
|
39,731
|
|
Investor relations fees and expenses (Note 3)
|
|
|
35,827
|
|
Independent auditors' fees and expenses
|
|
|
20,957
|
|
Trustee fees and expenses
|
|
|
16,761
|
|
Custodian's fees and expenses
|
|
|
15,733
|
|
Legal fees and expenses
|
|
|
9,493
|
|
Transfer agent's fees and expenses
|
|
|
8,840
|
|
Insurance expense
|
|
|
4,078
|
|
Miscellaneous
|
|
|
29,644
|
|
Total operating expenses, excluding interest expense
|
|
|
995,671
|
|
Interest expense (Note 6)
|
|
|
12,014
|
|
Total operating expenses before reimbursed/waived expenses
|
|
|
1,007,685
|
|
Less: Expenses waived (Note 3)
|
|
|
(120,416
|
)
|
Net operating expenses
|
|
|
887,269
|
|
|
|
|
|
|
Net Investment Income
|
|
|
7,112,644
|
|
|
|
|
|
|
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions:
|
|
|
|
|
|
|
|
|
|
Net realized gain/(loss) from:
|
|
|
|
|
Investment transactions
|
|
|
1,913,140
|
|
Forward foreign currency exchange contracts
|
|
|
(38,290
|
)
|
Foreign currency transactions
|
|
|
19,190
|
|
|
|
|
1,894,040
|
|
|
|
|
|
|
Net change in unrealized appreciation/(depreciation) on:
|
|
|
|
|
Investment transactions
|
|
|
30,056,735
|
|
Forward foreign currency exchange contracts
|
|
|
(57,762
|
)
|
Foreign currency translation
|
|
|
4,284
|
|
|
|
|
30,003,257
|
|
Net realized and unrealized gain from investments and foreign currency related transactions
|
|
|
31,897,297
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
39,009,941
|
|
See Notes to Financial Statements.
12
|
Aberdeen Global Dynamic Dividend Fund
|
Statements of Changes in Net Assets
|
|
For
the
Six-Month
Period Ended
April 30, 2021
(unaudited)
|
|
|
For
the
Year Ended
October 31, 2020
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
in Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
Net
investment income
|
|
$ 7,112,644
|
|
|
|
$ 8,744,748
|
|
Net
realized gain/(loss) from investments, forward foreign currency exchange
contracts and foreign currency transactions
|
|
1,894,040
|
|
|
|
(5,551,342
|
)
|
Net
change in unrealized appreciation/(depreciation) on investments,
forward foreign currency exchange contracts and foreign currency
transactions
|
|
30,003,257
|
|
|
|
(5,668,189
|
)
|
Net
increase/(decrease) in net assets resulting from operations
|
|
39,009,941
|
|
|
|
(2,474,783
|
)
|
|
|
|
|
|
|
|
|
Distributions
to Shareholders From:
|
|
|
|
|
|
|
|
Distributable
earnings
|
|
(4,894,337
|
)
|
|
|
(9,529,704
|
)
|
Tax
return of capital
|
|
–
|
|
|
|
(258,970
|
)
|
Net
decrease in net assets from distributions
|
|
(4,894,337
|
)
|
|
|
(9,788,674
|
)
|
Change
in net assets resulting from operations
|
|
34,115,604
|
|
|
|
(12,263,457
|
)
|
|
|
|
|
|
|
|
|
Net
Assets:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
127,512,306
|
|
|
|
139,775,763
|
|
End
of period
|
|
$161,627,910
|
|
|
|
$127,512,306
|
|
Amounts listed as "–" are $0 or round to $0.
See Notes to Financial Statements.
Aberdeen
Global Dynamic Dividend Fund
|
13
|
Financial Highlights
|
For
the
Six-Month
Period Ended
April 30, 2021
|
|
For the Fiscal Years Ended October 31,
|
|
|
(unaudited)
|
2020
|
2019
|
2018(a)
|
2017
|
2016
|
PER
SHARE OPERATING PERFORMANCE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value per common share, beginning of period
|
$10.16
|
|
$11.14
|
|
$10.80
|
|
$11.43
|
|
$9.96
|
|
$10.79
|
|
Net
investment income
|
0.57
|
(b)
|
0.70
|
(b)
|
0.76
|
(b)
|
0.61
|
(b)
|
0.75
|
|
0.70
|
|
Net
realized and unrealized gains/(losses) on investments, forward foreign currency exchange contracts and foreign currency transactions
|
2.54
|
|
(0.90
|
)
|
0.36
|
|
(0.46
|
)
|
1.50
|
|
(0.75
|
)
|
Total
from investment operations applicable to common shareholders
|
3.11
|
|
(0.20
|
)
|
1.12
|
|
0.15
|
|
2.25
|
|
(0.05
|
)
|
Distributions
to common shareholders from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
|
(0.39
|
)
|
(0.76
|
)
|
(0.78
|
)
|
(0.77
|
)
|
(0.77
|
)
|
(0.75
|
)
|
Tax
return of capital
|
–
|
|
(0.02
|
)
|
–
|
|
(0.01
|
)
|
(0.01
|
)
|
(0.03
|
)
|
Total
distributions
|
(0.39
|
)
|
(0.78
|
)
|
(0.78
|
)
|
(0.78
|
)
|
(0.78
|
)
|
(0.78
|
)
|
Capital
Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value per common share, end of period
|
$12.88
|
|
$10.16
|
|
$11.14
|
|
$10.80
|
|
$11.43
|
|
$9.96
|
|
Market
price, end of period
|
$11.59
|
|
$8.58
|
|
$9.78
|
|
$9.25
|
|
$10.64
|
|
$8.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Return Based on(c):
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
price
|
40.01%
|
|
(4.43%
|
)
|
14.71%
|
|
(6.37%
|
)
|
36.68%
|
|
1.61%
|
|
Net
asset value
|
31.39%
|
|
(0.65%
|
)
|
11.91%
|
|
1.76%
|
|
24.13%
|
|
1.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio
to Average Net Assets Applicable to Common Shareholders/Supplementary Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets applicable to common shareholders, end of period (000 omitted)
|
$161,628
|
|
$127,512
|
|
$139,776
|
|
$135,582
|
|
$143,431
|
|
$124,996
|
|
Net
operating expenses, net of fee waivers
|
1.18%
|
(d)
|
1.18%
|
|
1.21%
|
|
1.19%
|
|
1.21%
|
|
1.14%
|
|
Net
operating expenses, excluding fee waivers
|
1.34%
|
(d)
|
1.36%
|
|
1.34%
|
|
1.27%
|
|
–
|
(e)
|
–
|
(e)
|
Net
operating expenses, net of fee waivers and excluding interest expense
|
1.16%
|
(d)
|
1.17%
|
|
1.16%
|
|
1.16%
|
|
1.17%
|
|
1.14%
|
|
Net
investment income
|
9.43%
|
(d)
|
6.59%
|
|
7.06%
|
|
5.20%
|
|
6.87%
|
|
6.90%
|
|
Portfolio
turnover
|
44%
|
(f)
|
105%
|
|
119%
|
|
80%
|
|
89%
|
|
97%
|
|
Line
of credit payable outstanding (000 omitted)
|
$5,131
|
|
$–
|
|
$211
|
|
$–
|
|
$2,920
|
|
$–
|
|
Asset
coverage ratio on revolving credit facility at period end
|
3,250%
|
|
–
|
|
66,335%
|
|
–
|
|
–
|
(g)
|
–
|
(g)
|
Asset
coverage per $1,000 on line of credit payable at period end
|
$32,503
|
|
$–
|
|
$663,350
|
|
$–
|
|
$48,124
|
|
$–
|
|
|
(a)
|
Beginning with the year ended October 31, 2018, the Fund has
been audited by KPMG LLP. Previous years were audited by a different independent registered public accounting firm.
|
|
(b)
|
Net investment income is based on average shares outstanding
during the period.
|
|
(c)
|
Total investment return is calculated assuming a purchase of
common stock on the first day and a sale on the last day of each reporting period. Dividends and distributions, if any, are assumed,
for purposes of this calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment return
does not reflect brokerage commissions.
|
14
|
Aberdeen Global Dynamic Dividend Fund
|
|
Financial Highlights (concluded)
|
(e)
|
Effective on May 4, 2018, the Fund entered into an expense limitation
agreement with Aberdeen Asset Managers Limited, the Fund's investment adviser. Prior to this, there was no such agreement in place.
|
|
(g)
|
The Fund did not disclose asset coverage ratio on line of credit
payable in prior years.
|
Amounts listed as "–" are $0 or round to $0.
See Notes to Financial Statements.
Aberdeen
Global Dynamic Dividend Fund
|
15
|
Notes to Financial Statements (unaudited)
April 30, 2021
1. Organization
Aberdeen Global Dynamic Dividend Fund (the "Fund") is a diversified,
closed-end management investment company. The Fund was organized as a Delaware statutory trust on May 11, 2006, and commenced operations
on July 26, 2006. The Fund's primary investment objective is to seek high current dividend income, more than 50% of which qualifies for
the reduced Federal income tax rates created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund also focuses on long-term
growth of capital as a secondary investment objective. The Board of Trustees (the "Board") authorized an unlimited number of
shares with no par value.
2. Summary of Significant Accounting Policies
The Fund is an investment company and accordingly follows the investment
company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification
Topic 946 Financial Services-Investment Companies.
The following is a summary of significant accounting policies followed
by the Fund in the preparation of its financial statements. The policies conform to generally accepted accounting principles ("GAAP")
in the United States of America. The preparation of financial statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
a. Security Valuation:
The Fund values its securities at current market value or fair value,
consistent with regulatory requirements. "Fair value" is defined in the Fund's Valuation and Liquidity Procedures as the price
that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants
without a compulsion to transact at the measurement date.
In accordance with the authoritative guidance
on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments using a three-level hierarchy
that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level,
measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations
based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3 the
lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Inputs refer broadly to
the assumptions that market participants would use in pricing the asset or liability, including
assumptions about risk, for example, the
risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the
inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of
the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market
participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial
instrument's level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value
measurement.
Equity securities that are traded on an exchange are valued at the last
quoted sale price on the principal exchange on which the security is traded at the "Valuation Time" subject to application,
when appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the
close of regular trading on the New York Stock Exchange ("NYSE") (usually 4:00 p.m. Eastern Time). In the absence of a sale
price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is
traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Closed-end funds and exchange-traded funds ("ETFs")
are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined
to be a Level 1 investment.
Foreign equity securities that are traded on
foreign exchanges that close prior to Valuation Time are valued by applying valuation factors to the last sale price or the mean price
as noted above. Valuation factors are provided by an independent pricing service provider approved by the Board. These valuation factors
are used when pricing the Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time
the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector
indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation
factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities
on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded
price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation
factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.
16
|
Aberdeen Global Dynamic Dividend Fund
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
Derivative instruments are valued at fair value. Exchange traded futures
are generally Level 1 investments and centrally cleared swaps and forwards are generally Level 2 investments. Forward foreign currency
contracts are generally valued based on the bid price of the forward rates and the current spot rate. Forward exchange rate quotations
are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12- month periods. An interpolated valuation is derived based
on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid
price if no settlement price is available. Swap agreements are generally valued by an approved pricing agent based on the terms of the
swap agreement (including future cash flows). When market quotations or exchange rates are not readily available, or if the Adviser concludes
that such market quotations do not accurately reflect fair value, the fair value of the Fund's assets are determined in good faith in
accordance with the Valuation Procedures.
Short-term investments are comprised of cash
and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State
Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a "government money market fund" pursuant
to Rule 2a-7 under the Investment Company Act of 1940, as amended (the "1940 Act"), and
has an objective, which is not guaranteed, to maintain a $1.00 per share
net asset value ("NAV"). Generally, these investment types are categorized as Level 1 investments.
In the event that a security's market quotations are not readily available
or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the
security is valued at fair value as determined by the Fund's Pricing Committee, taking into account the relevant factors and surrounding
circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Fund's Pricing
Committee may be classified as Level 2 or Level 3 depending on the nature of the inputs.
The three-level hierarchy of inputs is summarized below:
Level 1 – quoted prices in active markets for identical investments;
Level 2 – other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds, and credit risk); or
Level 3 – significant unobservable inputs
(including the Fund's own assumptions in determining the fair value of investments).
A summary of standard inputs is listed below:
Security
Type
|
Standard
Inputs
|
Foreign
equities utilizing
a fair value factor
|
Depositary
receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security.
|
The following is a summary of the inputs used as of April 30, 2021 in
valuing the Fund's investments at fair value. The inputs or methodologies used for valuing securities are not necessarily an indication
of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the
security types:
Investments,
at Value
|
|
Level
1 – Quoted
Prices ($)
|
|
Level
2 – Other Significant
Observable Inputs ($)
|
|
Level
3 – Significant
Unobservable Inputs ($)
|
|
Total
($)
|
|
Investments
in Securities
|
|
|
|
|
|
|
|
|
|
Common
Stocks
|
|
$99,459,530
|
|
$59,779,921
|
|
$–
|
|
$159,239,451
|
|
Preferred
Stocks
|
|
–
|
|
2,993,839
|
|
–
|
|
2,993,839
|
|
Total
Investments in Securities
|
|
$99,459,530
|
|
$62,773,760
|
|
$–
|
|
$162,233,290
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Other
Financial Instruments
|
|
|
|
|
|
|
|
|
|
Forward
Foreign Currency Exchange Contracts
|
|
$–
|
|
$(34,319)
|
|
$–
|
|
$(34,319)
|
|
Amounts listed as "–" are $0 or round to $0.
During the six-month period ended April 30, 2021, there were no significant
changes to the fair valuation methodologies for the type of holdings in the Fund's portfolio.
Aberdeen
Global Dynamic Dividend Fund
|
17
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
b. Foreign Currency Translation:
Foreign securities, currencies, and other assets and liabilities denominated
in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation
Time, as provided by an independent pricing service approved by the Board.
Foreign currency amounts are translated into U.S. Dollars on the following
basis:
|
(i)
|
market value of investment securities, other assets and liabilities
– at the current daily rates of exchange at the Valuation Time; and
|
|
(ii)
|
purchases and sales of investment securities, income and expenses
– at the rate of exchange prevailing on the respective dates of such transactions.
|
The Fund does not isolate that portion of gains and losses on investments
in equity securities due to changes in the foreign exchange rates from the portion due to changes in market prices of equity securities.
Accordingly, realized and unrealized foreign currency gains and losses with respect to such securities are included in the reported net
realized and unrealized gains and losses on investment transactions balances.
The Fund reports certain foreign currency related transactions and foreign
taxes withheld on security transactions as components of realized gains for financial reporting purposes, whereas such foreign currency
related transactions are treated as ordinary income for U.S. federal income tax purposes.
Net unrealized currency gains or losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation
in value of investments, and translation of other assets and liabilities denominated in foreign currencies.
Net realized foreign exchange gains or losses represent foreign exchange
gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between
the trade date and settlement date on security transactions, and the difference between the amounts of interest and dividends recorded
on the Fund's books and the U.S. Dollar equivalent of the amounts actually received.
c. Security Transactions, Investment Income and Expenses:
Security transactions are recorded on the
trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost
basis. Dividend income and corporate actions are recorded generally on the ex-date, except for certain
dividends
and corporate actions which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate
actions. Interest income and expenses are recorded on an accrual basis.
d. Derivative Financial Instruments:
The Fund is authorized to use derivatives to manage currency risk, credit
risk, and interest rate risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the
value of the contract or if the counterparty does not perform under the contract. The use of derivative instruments involves, to varying
degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities.
Forward Foreign Currency Exchange Contracts:
A forward foreign currency exchange contract ("forward contract")
involves an obligation to purchase and sell a specific currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the contract. Forward contracts are used to manage the Fund's
currency exposure in an efficient manner.
They are used to sell unwanted currency exposure that comes with holding
securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency
exposure either in absolute terms or relative to a particular benchmark or index. The use of forward contracts allows for the separation
of investment decision-making between foreign securities holdings and their currencies.
The forward contract is marked-to-market daily and the change in market
value is recorded by the Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent
pricing provider. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the value
at the time it was opened and the value at the time it was closed. These realized and unrealized gains and losses are reported on the
Statement of Operations.
During the six-month period ended April 30, 2021, the Fund used forward
contracts to hedge its currency exposure.
While the Fund may enter into forward contracts
to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. The Fund could be exposed to risks
if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates.
Thus, while the Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance
for the Fund than if
18
|
Aberdeen Global Dynamic Dividend Fund
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
it had not engaged in any such transactions. Moreover, there may be imperfect correlation between the Fund's portfolio holdings or securities
quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent
the Fund from achieving a desired hedge, which will expose the Fund to the risk of foreign exchange loss.
Forward contracts are subject to the risk that a counterparty to a forward
contract may default on its obligations. Since a forward foreign currency exchange contract is not guaranteed by an exchange or clearing
house, a default on the contract would deprive the Fund of unrealized profits, transaction costs or the benefits of a currency hedge or
force the Fund to cover its purchase or sale commitments, if any, at the market price at the time of default.
Summary of Derivative Instruments:
The Fund may use derivatives for various purposes as noted above.
The following is a summary of the fair value of derivative instruments,
not accounted for as hedging instruments, as of April 30, 2021:
|
Asset Derivatives
|
|
|
|
|
Liability Derivatives
|
|
|
|
Derivatives Not Accounted For as
Hedging Instruments
and Risk Exposure
|
Statement of Assets and
Liabilities Location
|
|
Fair Value
|
|
|
Statement of Assets and
Liabilities Location
|
|
Fair Value
|
|
Forward
foreign currency exchange contracts (foreign exchange risk)
|
Unrealized appreciation on
forward foreign currency exchange contracts
|
|
$–
|
|
|
Unrealized depreciation on
forward foreign currency exchange contracts
|
|
$34,319
|
|
Total
|
|
|
$–
|
|
|
|
|
$34,319
|
|
Amounts listed as "–" are $0 or round to $0.
The Fund has transactions that may be subject to enforceable master netting
agreements. A reconciliation of the gross amounts on the Statement of Assets and Liabilities as of April 30, 2021 to the net amounts by
broker and derivative type, including any collateral received or pledged, is included in the following tables:
|
|
|
Gross Amounts Not Offset
in Statement of
Assets & Liabilities
|
|
|
|
Gross Amounts Not Offset
in Statement of
Assets and Liabilities
|
|
Description
|
Gross Amounts
of Assets
Presented in
Statement of
Financial Position
|
|
Financial
Instruments
|
Collateral
Received(1)
|
Net
Amount(3)
|
|
Gross Amounts
of Liabilities
Presented in
Statement of
Financial Position
|
|
Financial
Instruments
|
Collateral
Pledged(1)
|
Net
Amount(3)
|
|
|
Assets
|
|
Liabilities
|
|
Forward foreign currency(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
State Street Bank and Trust
|
$–
|
|
$–
|
$–
|
$–
|
|
$34,319
|
|
$–
|
$–
|
$34,319
|
|
|
(1)
|
In some instances, the actual collateral received and/or pledged
may be more than the amount shown here due to overcollateralization.
|
|
(2)
|
Includes financial instruments (swaps and forwards) which are
not subject to a master netting arrangement across funds, or other another similar arrangement.
|
|
(3)
|
Net amounts represent the net receivable/(payable) that would
be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be netted across transactions
governed under the same master netting arrangements with the same legal entity.
|
Amounts listed as "–" are $0 or round to $0.
Aberdeen
Global Dynamic Dividend Fund
|
19
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
The effect of derivative instruments on the Statement of Operations for
the six-month period ended April 30, 2021:
|
Location
of Gain or (Loss) on
Derivatives
|
Realized
Gain
or (Loss) on
Derivatives
|
Change
in
Unrealized
Appreciation/
(Depreciation) on
Derivatives
|
Forward
foreign currency exchange contracts (foreign exchange risk)
|
Realized/Unrealized
Gain/(Loss) from
Investments and Foreign Currency Transactions
|
$(38,290)
|
$(57,762)
|
Total
|
|
$(38,290)
|
$(57,762)
|
Information about derivatives reflected as of the date of this report
is generally indicative of the type of activity for the six-month period ended April 30, 2021. The table below summarizes the weighted
average values of derivatives holdings for the Fund during the six-month period ended April 30, 2021.
Derivative
|
Average
Notional Value
|
Purchase
Forward Foreign Currency Contracts
|
$–
|
Sale
Forward Foreign Currency Contracts
|
$3,679,571
|
Amounts listed as "–" are $0 or round to $0.
The Fund values derivatives at fair value, as described in the Statement
of Operations. Accordingly, the Fund does not follow hedge accounting even for derivatives employed as economic hedges.
e. Distributions:
The Fund intends to make regular monthly distributions of net investment
income to holders of common shares. The Fund expects to pay its common shareholders annually all or substantially all of its investment
company taxable income. In addition, at least annually, the Fund intends to distribute all or substantially all of its net capital gains,
if any.
Distributions from net realized gains for book purposes may include short-term
capital gains which are ordinary income for tax purposes. Distributions to common shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance
with federal income tax regulations, which may differ from GAAP. These "book-tax" differences are considered either temporary
or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts
based on their federal income tax treatment. Temporary differences do not require reclassification. To the extent distributions exceed
current and accumulated earnings and profits for federal income tax purposes they are reported to shareholders as return of capital.
f. Federal Income Taxes:
The Fund intends to continue to qualify as a "regulated investment
company" (RIC) by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal
Revenue Code of 1986 (the "Code"), as amended, and to make distributions of net investment income and net realized capital gains
sufficient to relieve the Fund from all federal income taxes. Therefore, no federal income tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only
where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management of the Fund
has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since
tax authorities can examine previously filed tax returns, the Fund's U.S. federal and state tax returns for each of the most recent four
fiscal years up to the fiscal year ended October 31, 2020 are subject to such review.
g. Foreign Withholding Tax:
Dividend and interest income from non-U.S. sources received by the Fund
are generally subject to non-U.S. withholding taxes and are recorded on the Statement of Operations. The Fund files for tax reclaims for
the refund of such withholding taxes according to tax treaties. Tax reclaims that are deemed collectible are booked as tax reclaim receivable
on the Statement of Assets and Liabilities. In addition, the Fund may be subject to capital gains tax in certain countries in which it
invests. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries.
The Fund accrues such taxes when the related income is earned.
In addition, when the Fund sells securities within certain countries
in which it invests, the capital gains realized may be subject to tax. Based on these market requirements and as required under GAAP,
the Fund accrues deferred capital gains tax on securities currently held that have unrealized appreciation within these countries. The
amount of deferred
20
|
Aberdeen Global Dynamic Dividend Fund
|
Notes to Financial
Statements (unaudited) (continued)
April 30, 2021
capital gains tax accrued is reported on the Statement of Operations
as part of the Net Change in Unrealized Appreciation/Depreciation on Investments.
h. Restricted Securities:
Restricted securities are privately-placed securities whose resale is
restricted under U.S. securities laws. The Fund may invest in restricted securities, including unregistered securities eligible for resale
without registration pursuant to Rule 144A and privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without
registration pursuant to Regulation S under the Securities Act of 1933, as amended (the "1933 Act"). Rule 144A securities may
be freely traded among certain qualified institutional investors, such as the Fund, but resale of such securities in the U.S. is permitted
only in limited circumstances.
3. Agreements and Transactions with Affiliates
a. Investment Adviser
Aberdeen Asset Managers Limited ("AAML or the Adviser") serves
as the Fund's investment adviser pursuant to an investment advisory agreement (the "Advisory Agreement") with the Fund. AAML
is a wholly-owned indirect subsidiary of Standard Life Aberdeen plc ("SLA plc"). In rendering advisory services, the Adviser
may use the resources of investment advisor subsidiaries of SLA plc. These affiliates have entered into procedures pursuant to which investment
professionals from affiliates may render portfolio management and research services as associated persons of the Adviser.
As compensation for its services to the Fund, AAML receives an annual
investment advisory fee of 1.00% based on the Fund's average daily net assets, computed daily and payable monthly.
Effective May 4, 2018, AAML entered into a written contract (the "Expense
Limitation Agreement") with the Fund that is effective through June 30, 2021. The Expense Limitation Agreement limits the total ordinary
operating expenses of the Fund (excluding any leverage costs, interest, taxes, brokerage commissions, and any non-routine expenses) from
exceeding 1.16% of the average daily net assets of the Fund on an annualized basis. The total amount of the waiver for the six-month period
ended April 30, 2021 pursuant to the Expense Limitation Agreement was $120,416.
AAML may request and receive reimbursement from the Fund of the advisory
fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement as of a date not more than three years after the
date when the Adviser limited the fees or reimbursed the expenses; provided that the following requirements are met: the reimbursements
do not cause the Fund to exceed the lesser of the applicable expense limitation in the contract at the time the fees were limited or expenses
are paid or the applicable expense limitation in effect at the time the expenses are being recouped by the Adviser, and the payment of
such reimbursement is approved by the Board on a quarterly basis (the "Reimbursement Requirements"). Except as provided for
in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by AAML is not permitted.
As of April 30, 2021, to the extent the Reimbursement Requirements are
met, the cumulative potential reimbursements to AAML from the Fund, based on expenses reimbursed by AAML, including adjustments described
above, would be:
Amount
Fiscal Year
2018
(Expires 10/31/2021)
|
Amount
Fiscal Year
2019
(Expires 10/31/2022)
|
Amount
Fiscal Year
2020
(Expires 10/31/2023)
|
Amount
Six Months Period
2021
(Expires 4/30/2024)
|
Total*
|
$115,457
|
$174,660
|
$228,190
|
$120,416
|
$638,723
|
* Amounts reported are due to expire throughout the respective
3-year expiration period presented above.
b. Fund Administrator
Effective June 1, 2020, Aberdeen Standard Investments, Inc. ("ASII"),
an affiliate of the Adviser, became the Fund's Administrator. Pursuant to the Administration Agreement, ASII receives a fee paid by the
Fund, at an annual fee rate of 0.08% of the Fund's average daily net assets. Prior to June 1, 2020, State Street Bank and Trust Company
("SSBT") served as the Fund's administrator. SSBT became the Fund's Sub-Administrator effective June 1, 2020. For the six-month
period ended April 30, 2021, ASII earned $60,341 from the Fund for administration services.
c. Investor Relations
Under the terms of the Investor Relations Services Agreement, ASII provides
and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by AAML or its affiliates
as part of an Investor Relations Program. Under the Investor Relations Services Agreement, the Fund owes a portion of the fees related
to the Investor Relations Program (the "Fund's Portion"). However, Investor Relations Services fees are limited by ASII so that
the Fund will only pay up to an annual rate of 0.05% of the Fund's average weekly net assets. Any difference between the capped rate of
0.05% of the Fund's average weekly net assets and the Fund's Portion is paid for by ASII.
Aberdeen
Global Dynamic Dividend Fund
|
21
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
Pursuant to the terms of the Investor Relations Services Agreement, ASII
(or third parties engaged by ASII), among other things, provides objective and timely information to shareholders based on publicly available
information; provides information efficiently through the use of technology while offering shareholders immediate access to knowledgeable
investor relations representatives; develops and maintains effective communications with investment professionals from a wide variety
of firms; creates and maintains investor relations communication materials such as fund manager interviews, films and webcasts, publishes
white papers, magazine articles and other relevant materials discussing the Fund's investment results, portfolio positioning and outlook;
develops and maintains effective communications with large institutional shareholders; responds to specific shareholder questions; and
reports activities and results to the Board and management detailing insight into general shareholder sentiment.
During the six-month period ended April 30, 2021, the Fund incurred investor
relations fees of approximately $35,827. For the six-month period ended April 30, 2021, ASII did not contribute to the investor relations
fees for the Fund because the Fund's contribution was below 0.05% of the Fund's average weekly net assets on an annual basis.
4. Investment Transactions
Purchases and sales of investment securities (excluding short-term securities)
for the six-month period ended April 30, 2021, were $477,706,448 and $429,733,023, respectively.
5. Capital
As of April 30, 2021, there were 12,549,582 shares of common stock issued
and outstanding.
6. Line of Credit
On December 1, 2010, the Fund entered into a lending agreement with BNP
Paribas Prime Brokerage International Ltd. ("BNPP PB"), which allows the Fund to borrow on an uncommitted and secured basis.
The terms of the lending agreement indicate the rate to be LIBOR plus 0.85% per annum on amounts borrowed. The BNPP PB facility provides
a secured, uncommitted line of credit for the Fund where selected Fund assets are pledged against advances made to the Fund. The Fund
has granted a security interest in all pledged assets used as collateral to the BNPP PB facility. The Fund is permitted to borrow up to
the maximum allowable amount under the Investment Company Act of 1940, as amended, of the total assets for extraordinary or emergency
purposes, which is generally 33.33% of total assets, but may exceed that under certain market conditions. Additionally, the Fund is permitted
to borrow up to 10% of the total assets for investment purposes. On April 30, 2021, the amount available for investment purposes was $16,866,096.
Either BNPP PB or the Fund may terminate this agreement upon delivery of written notice. During
the six-month period ended April 30, 2021, the average borrowing by the
Fund was $2,255,415 with an average weighted interest rate on borrowings of 0.97%. During the six-month period ended April 30, 2021, the
maximum borrowing by the Fund was $5,741,697. Interest expense related to the line of credit for the six-month period ended April 30,
2021, was $12,014. As of April 30, 2021, the outstanding balance on the loan was $5,130,563.
7. Open Market Repurchase Program
On June 13, 2018, the Board approved a share repurchase program ("Program")
for the Fund. The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of
any repurchase determined at the discretion of the Fund's investment adviser and subject to market conditions and investment considerations.
The Fund reports repurchase activity on the Fund's website on a monthly basis. For the six-month period ended April 30, 2021, the Fund
did not repurchase any shares through the Program.
8. Portfolio Investment Risks
a. Dividend Strategy Risk:
There is no guarantee that the issuers of the stocks held by the Fund
will declare dividends in the future or that, if dividends are declared, they will remain at their current levels or increase over time.
The Fund's emphasis on dividend paying stocks could cause the Fund to underperform similar funds that invest without consideration of
a company's track record of paying dividends or ability to pay dividends in the future. Dividend-paying stocks may not participate in
a broad market advance to the same degree as other stocks, and a sharp rise in interest rates or economic downturn could cause a company
to unexpectedly reduce or eliminate its dividend. The Fund may hold securities for short periods of time related to the dividend payment
periods and may experience loss during these periods.
b. Emerging Markets Risk:
The Fund is subject to emerging market risk. This is a magnification
of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging market countries because
the countries may have less stable governments, more volatile currencies and less established markets (see "Foreign Securities Risk"
below).
c. Equity Securities Risk:
The stock or other security of a company may not perform as well as expected,
and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions)
or to the industry in which the company is engaged (such as a reduction in the demand for products or services in a particular industry).
Holders of common stock generally are subject to more risks than holders of preferred stock or debt securities because
22
|
Aberdeen Global Dynamic Dividend Fund
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
the right to repayment of common stockholders' claims is subordinated
to that of preferred stock and debt securities upon the bankruptcy of the issuer.
d. Foreign Currency Exposure Risk:
The value of foreign currencies relative to the U.S. Dollar fluctuates
in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency
versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the
Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.
e. Foreign Securities Risk:
Foreign countries in which the Fund may invest may have markets that
are less liquid, less regulated and more volatile than U.S. markets. The value of the Fund's investments may decline because of factors
such as unfavorable or unsuccessful government actions, reduction of government or central bank support and political or financial instability.
To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic,
political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a
more geographically diversified fund.
f. Issuer Risk:
The value of a security may decline for reasons directly related to the
issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or service.
g. Leverage Risk:
The Fund may use leverage to purchase securities. Increases and decreases
in the value of the Fund's portfolio will be magnified when the Fund uses leverage.
h. LIBOR Risk:
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
("FCA") announced a desire to phase out the use of LIBOR by the end of 2021. However, subsequent announcements by the FCA, the
LIBOR administrator and other regulators indicate that it is possible that the most widely used LIBOR rates may continue until mid-2023.
It is anticipated that LIBOR ultimately will be discontinued or the regulator will announce that it is no longer sufficiently robust to
be representative of its underlying market around that time. 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 the revolving credit facility and on the Fund's investments that reference LIBOR cannot yet be determined.
i. Management Risk:
The Fund is subject to the risk that the Adviser may make poor security
selections. The Adviser and its portfolio managers apply their own investment techniques and risk analyses in making investment decisions
for the Fund and there can be no guarantee that these decisions will achieve the desired results for the Fund. In addition, the Adviser
may select securities that underperform the relevant market or other funds with similar investment objectives and strategies.
j. Market Risk:
Markets are affected by numerous factors, including interest rates, the
outlook for corporate profits, the health of the national and world economies, the fluctuation of other stock markets around the world,
and financial, economic and other global market developments and disruptions, such as those arising from war, terrorism, market manipulation,
government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies and natural/environmental
disasters. Such events can negatively impact the securities markets and cause the Fund to lose value.
One such event is the COVID-19 pandemic, which has caused major disruptions
to economies and markets around the world, including the markets in which the Fund invests, and which has and may continue to negatively
impact the value of certain of the Fund's investments. Although vaccines for COVID-19 and variants thereof are becoming more widely available,
the COVID-19 pandemic and impacts thereof may continue for an extended period of time and may vary from market to market. To the extent
the impacts of COVID-19 continue, the Fund may experience negative impacts to its business that could exacerbate other risks to which
the Fund is subject. Policy and legislative changes in countries around the world are affecting many aspects of financial regulation,
and governmental and quasi-governmental authorities and regulators throughout the world have previously responded to serious economic
disruptions with a variety of significant fiscal and monetary policy changes.
In addition, economies and financial markets throughout the world are
becoming increasingly interconnected. As a result, whether or not the Fund invests in securities of issuers located in or with significant
exposure to countries experiencing economic and financial difficulties, the value and liquidity of the Fund's investments may be negatively
affected by such events.
For example, whether or not the Fund invests in securities of issuers
located in Europe (whether the EU, Eurozone or UK) or with significant exposure to European, EU, Eurozone or UK issuers or countries,
the
Aberdeen
Global Dynamic Dividend Fund
|
23
|
Notes to Financial Statements (unaudited)
(continued)
April 30, 2021
unavoidable uncertainties and events related to the UK's departure from
the EU ("Brexit") could negatively affect the value and liquidity of the Fund's investments, increase taxes and costs of business
and cause volatility in currency exchange rates and interest rates. Brexit could adversely affect the performance of contracts in existence
at the date of Brexit and European, UK or worldwide political, regulatory, economic or market conditions and could contribute to instability
in political institutions, regulatory agencies and financial markets. Brexit could also lead to legal uncertainty and politically divergent
national laws and regulations as a new relationship between the UK and EU is defined and as the UK determines which EU laws to replace
or replicate. Any of these effects of Brexit, and others that cannot be anticipated, could adversely affect the Fund's business, results
of operations and financial condition.
The impact of these changes on the markets, and the practical implications
for market participants, may not be fully known for some time.
k. Mid-Cap Securities Risk:
Securities of medium-sized companies tend to be more volatile and less
liquid than securities of larger companies.
l. Non-U.S. Taxation Risk:
Income, proceeds and gains received by the Fund from sources within foreign
countries may be subject to withholding and other taxes imposed by such countries, which will reduce the return on those investments.
Tax treaties between certain countries and the United States may reduce or eliminate such taxes.
If, at the close of its taxable year, more than 50% of the value of the
Fund's total assets consists of securities of foreign corporations, including for this purpose foreign governments, the Fund will be permitted
to make an election under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case,
shareholders will include in gross income from foreign sources their pro rata shares of such taxes. A shareholder's ability to claim an
offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain limitations imposed by the Code, which
may result in the shareholder's not receiving a full credit or deduction (if any) for the amount of such taxes. Shareholders who do not
itemize on their U.S. federal income tax returns may claim a credit (but not a deduction) for such foreign taxes. If the Fund does not
qualify for or chooses not to make such an election, shareholders will not be entitled separately to claim a credit or deduction for U.S.
federal income tax purposes with respect to foreign taxes paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund's
taxable income. Even if the Fund elects to pass through to its shareholders foreign tax credits or deductions, tax-exempt shareholders
and those who invest in the Fund through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction.
m. Passive Foreign Investment Company Tax Risk:
Equity investments by the Fund in certain "passive foreign investment
companies" ("PFICs") could subject the Fund to a U.S. federal income tax (including interest charges) on distributions
received from the PFIC or on proceeds received from the disposition of shares in the PFIC. The Fund may be able to elect to treat a PFIC
as a "qualified electing fund" (i.e., make a "QEF election"), in which case the Fund will be required to include its
share of the company's income and net capital gains annually. The Fund may make an election to mark the gains (and to a limited extent
losses) in such holdings "to the market" as though it had sold and repurchased its holdings in those PFICs on the last day of
the Fund's taxable year. Such gains and losses are treated as ordinary income and loss. Because it is not always possible to identify
a foreign corporation as a PFIC, the Fund may incur the tax and interest charges described above in some instances.
n. Portfolio Turnover Risk:
The Fund may engage in active and frequent trading of portfolio securities
to achieve its investment objective. High portfolio turnover necessarily results in greater transaction costs which may reduce Fund performance.
It may also result in greater realization of gains, which may include short-term gains taxable at ordinary income tax rates.
o. Qualified Dividend Income Tax Risk:
Favorable U.S. federal tax treatment of Fund distributions may be adversely
affected, changed or repealed by future changes in tax laws.
p. Sector Risk:
To the extent that the Fund has a significant portion of its assets invested
in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more
vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.
Financial Sector Risk. To the extent that the financials sector
represents a significant portion of the Fund's holdings, the Fund will be sensitive to changes in, and its performance may depend to a
greater extent on, factors impacting this sector. Performance of companies in the financials sector may be adversely impacted by many
factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and
decreased liquidity in credit markets. The impact of more stringent capital requirements, recent or future regulation of any individual
financial company, or recent or future regulation of the financials sector as a whole cannot be predicted. In recent years, cyber attacks
and technology malfunctions and failures have become increasingly frequent in this sector and have caused significant losses.
Information Technology Sector Risk. To the extent that the information
technology sector represents a significant portion of the Fund, the Fund will be sensitive to changes in, and its performance may depend
to a
24
|
Aberdeen Global Dynamic Dividend Fund
|
Notes to Financial Statements (unaudited)
(concluded)
April 30, 2021
greater extent on, factors impacting this
sector. Performance of companies in the information technology sector may be adversely impacted by many factors, including, among
others, overall economic conditions, short product cycles, rapid obsolescence of products, competition and government
regulation.
q. Small-Cap Securities Risk:
Securities of smaller companies are usually less stable in price and
less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.
r. Valuation Risk:
The price that the Fund could receive upon the sale of any particular
portfolio investment may differ from the Fund's valuation of the investment, particularly for securities that trade in thin or volatile
markets or that are valued using a fair valuation methodology or a
price provided by an independent pricing service. As a result, the
price received upon the sale of an investment may be less than the value ascribed
by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The
Fund's ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party
service providers.
9. Contingencies
In the normal course of business, the Fund may provide general indemnifications
pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future
claims that may be made against the Fund, and therefore, cannot be estimated; however, the Fund expects the risk of loss from such claims
to be remote.
10. Tax Information
The U.S. federal income tax basis of the Fund's investments (including
derivatives, if applicable) and the net unrealized appreciation as of April 30, 2021, were as follows:
Tax Basis of Investments
|
|
Appreciation
|
|
Depreciation
|
|
Net Unrealized
Appreciation
|
|
$119,591,164
|
|
$46,912,894
|
|
$(4,270,768
|
)
|
$42,642,126
|
|
11. Recent Accounting Pronouncements
In October 2020, the SEC adopted new regulations governing the use of
derivatives by registered investment companies. Rule 18f-4 will impose limits on the amount of derivatives a fund could enter into, eliminate
the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, and require funds whose use of derivatives
is more than a limited specified exposure to establish and maintain a derivatives risk management program and appoint a derivatives risk
manager. While the new rule became effective February 19, 2021, funds will not be required to fully comply with the new rule until August
19, 2022. It is not currently clear what impact, if any, the new rule will have on the availability, liquidity or performance of derivatives.
Management is assessing the impact of Rule 18f-4 on the Fund.
12. Subsequent Events
Management has evaluated the need for disclosures and/or adjustments
resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or
adjustments were required to the financial statements as of April 30, 2021.
On May 11, 2021 and June 9, 2021, the Fund announced that it will pay
on May 28, 2021 and June 30, 2021 a distribution of $0.065 per share to all shareholders of record as of May 21, 2021 and June 23, 2021,
respectively.
Aberdeen
Global Dynamic Dividend Fund
|
25
|
Supplemental Information (unaudited)
Results of Annual Meeting of Shareholders
The Annual Meeting of Shareholders was held virtually on April 29, 2021.
The description of the proposal and number of shares voted at the meeting are as follows:
1. To elect one Class I Trustee to the Board of Trustees:
|
Votes For
|
|
Votes Withheld
|
|
John Sievwright
|
8,805,996
|
|
1,394,971
|
|
26
|
Aberdeen Global Dynamic Dividend Fund
|
Dividend Reinvestment and Optional
Cash Purchase Plan (unaudited)
The Fund intends to distribute to stockholders substantially all of its
net investment income and to distribute any net realized capital gains at least annually. Net investment income for this purpose is income
other than net realized long-term and short-term capital gains net of expenses. Pursuant to the Dividend Reinvestment and Optional Cash
Purchase Plan (the "Plan"), stockholders whose shares of common stock are registered in their own names will be deemed to have
elected to have all distributions automatically reinvested by Computershare Trust Company N.A. (the "Plan Agent") in the Fund
shares pursuant to the Plan, unless such stockholders elect to receive distributions in cash. Stockholders who elect to receive distributions
in cash will receive such distributions paid by check in U.S. Dollars mailed directly to the stockholder by the Plan Agent, as dividend
paying agent. In the case of stockholders such as banks, brokers or nominees that hold shares for others who are beneficial owners, the
Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the stockholders as representing
the total amount registered in such stockholders' names and held for the account of beneficial owners that have not elected to receive
distributions in cash. Investors that own shares registered in the name of a bank, broker or other nominee should consult with such nominee
as to participation in the Plan through such nominee and may be required to have their shares registered in their own names in order to
participate in the Plan. Please note that the Fund does not issue certificates so all shares will be registered in book entry form. The
Plan Agent serves as agent for the stockholders in administering the Plan. If the Directors of the Fund declare an income dividend or
a capital gains distribution payable either in the Fund's common stock or in cash, nonparticipants in the Plan will receive cash and participants
in the Plan will receive common stock, to be issued by the Fund or purchased by the Plan Agent in the open market, as provided below.
If the market price per share (plus expected per share fees) on the valuation date equals or exceeds NAV per share on that date, the Fund
will issue new shares to participants at NAV; provided, however, that if the NAV is less than 95% of the market price on the valuation
date, then such shares will be issued at 95% of the market price. The valuation date will be the payable date for such distribution or
dividend or, if that date is not a trading day on the New York Stock Exchange, the immediately preceding trading date. If NAV exceeds
the market price of Fund shares at such time, or if the Fund should declare an income dividend or capital gains distribution payable only
in cash, the Plan Agent will, as agent for the participants, buy Fund shares in the open market, on the New York Stock Exchange or elsewhere,
for the participants' accounts on, or shortly after, the payment date. If, before the Plan Agent has completed its purchases, the market
price exceeds the NAV of a Fund share, the average per share purchase price paid by the Plan Agent may exceed the NAV of the Fund's shares,
resulting in the acquisition of fewer shares than if the distribution
had been paid in shares issued by the Fund on the dividend payment date. Because of the foregoing difficulty with respect to open-market
purchases, the Plan provides that if the Plan Agent is unable to invest the full dividend amount in open-market purchases during the purchase
period or if the market discount shifts to a market premium during the purchase period, the Plan Agent will cease making open-market purchases
and will receive the uninvested portion of the dividend amount in newly issued shares at the close of business on the last purchase date.
Participants have the option of making additional cash payments of a
minimum of $50 per investment (by check, one-time online bank debit or recurring automatic monthly ACH debit) to the Plan Agent for investment
in the Fund's common stock, with an annual maximum contribution of $250,000. The Plan Agent will use all such funds received from participants
to purchase Fund shares in the open market on the 25th day of each month or the next trading day if the 25th is not a trading day.
If the participant sets up recurring automatic monthly ACH debits, funds
will be withdrawn from his or her U.S. bank account on the 20th of each month or the next business day if the 20th is not a banking business
day and invested on the next investment date. The Plan Agent maintains all stockholder accounts in the Plan and furnishes written confirmations
of all transactions in an account, including information needed by stockholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the participant, and each stockholder's proxy will include those shares
purchased pursuant to the Plan. There will be no brokerage charges with respect to common shares issued directly by the Fund. However,
each participant will pay a per share fee of $0.02 incurred with respect to the Plan Agent's open market purchases in connection with
the reinvestment of dividends, capital gains distributions and voluntary cash payments made by the participant. Per share fees include
any applicable brokerage commissions the Plan Agent is required to pay.
Participants also have the option of selling their shares through the
Plan. The Plan supports two types of sales orders. Batch order sales are submitted on each market day and will be grouped with other sale
requests to be sold. The price will be the average sale price obtained by Computershare's broker, net of fees, for each batch order and
will be sold generally within 2 business days of the request during regular open market hours. Please note that all written sales requests
are always processed by Batch Order. ($10 and $0.12 per share). Market Order sales will sell at the next available trade. The shares are
sold real time when they hit the market, however an available trade must be
Aberdeen
Global Dynamic Dividend Fund
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27
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Dividend Reinvestment and Optional
Cash Purchase Plan (unaudited) (concluded)
presented to complete this transaction. Market Order sales may only be
requested by phone at 1-800-647-0584 or using Investor Center through www.computershare.com/buyaberdeen. ($25 and $0.12 per share).
The receipt of dividends and distributions under the Plan will not relieve
participants of any income tax that may be payable on such dividends or distributions. The Fund or the Plan Agent may terminate the Plan
as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to notice of the termination sent to members
of the Plan at least 30 days prior to the record date for such
dividend or distribution. The Plan also may be amended by the Fund or
the Plan Agent, but (except when necessary or appropriate to comply with applicable law or the rules or policies of the Securities and
Exchange Commission or any other regulatory authority) only by mailing a written notice at least 30 days' prior to the effective date
to the participants in the Plan. All correspondence concerning the Plan should be directed to the Plan Agent by phone at 1-800-647-0584,
using Investor Center through www.computershare.com/buyaberdeen or in writing to Computershare Trust Company N.A., P.O. Box 505000, Louisville,
KY 40233-5000.
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Aberdeen Global Dynamic Dividend Fund
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Corporate Information
Trustees
Stephen Bird
Nancy Yao Maasbach
P. Gerald Malone, Chairman
John Sievwright
Investment Adviser
Aberdeen Asset Managers Limited
Bow Bells House
1 Bread Street
London, United Kingdom
EC4M 9HH
Custodian
State Street Bank and Trust Company
1 Lincoln Street
Boston, MA 02111
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 505000
Louisville, KY 40233
Independent Registered Public Accounting Firm
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, DC 20006
Administrator
Aberdeen Standard Investments Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
Investor Relations
Aberdeen Standard Investments, Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@aberdeenstandard.com
Aberdeen Asset Managers Limited
The Financial Statements as of April 30, 2021, included in this report,
were not audited and accordingly, no opinion is expressed thereon.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase, from time to time, shares of its common stock in the open market.
Shares of Aberdeen Global Dynamic Dividend Fund are traded on the NYSE
under the symbol "AGD". Information about the Fund's net asset value and market price is available at www.aberdeenagd.com.
This report, including the financial information herein, is transmitted
to the shareholders of Aberdeen Global Dynamic Dividend Fund for their general information only. It does not have regard to the specific
investment objectives, financial situation and the particular needs of any specific person. Past performance is no guarantee of future
returns.
AGD SEMI-ANNUAL