AOD abrdn Total Dynamic Dividend Fund

 

Dear Shareholder,

We present the Annual Report, which covers the activities of abrdn Global Dynamic Dividend Fund ("AGD") and abrdn Total Dynamic Dividend Fund ("AOD") (collectively, the "Funds" and each a "Fund"), for the fiscal year ended October 31, 2023. The primary investment objective for AGD is to seek high current dividend income, more than 50% of which qualifies for the reduced federal income tax rate, as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The primary investment objective for AOD is to seek high current dividend income. The Funds also focus on long-term growth of capital as a secondary investment objective.

Total Investment Return¹

For the fiscal year ended October 31, 2023, the total return to shareholders of the Funds based on the net asset value (“NAV”) and market price of the Funds, respectively, is as follows:

	AGD	AOD
NAV2,3	7.00%	8.01%
Market Price2	2.29%	5.41%
MSCI AC World Index (Net DTR)4	10.50%	10.50%

For more information about AGD or AOD performance, please visit the Funds on the web at www.abrdnagd.com (AGD) and www.abrdnaod.com (AOD), respectively. On the web you can view quarterly commentary on the Funds' performance, monthly fact sheets, distribution and performance information, and other Fund literature.

NAV, Market Price and Premium(+)/Discount(-)

The below tables represent comparison from current fiscal year end to prior fiscal year end of market price to NAV and associated Premium(+) and Discount(-).

	AGD
	NAV	Closing Market Price	Premium(+)/ Discount(-)
10/31/2023	$9.90	$8.40	-15.15%
10/31/2022	$10.05	$8.92	-11.24%

During the fiscal year ended October 31, 2023, AGD’s NAV was within a range of $9.74 to $11.31 and AGD’s market price traded within a range of $8.20 to $10.11. During the fiscal year ended October 31, 2023, AGD’s shares traded within a range of a premium(+)/discount(-) of -8.96% to -16.50%.

	AOD
	NAV	Closing Market Price	Premium(+)/ Discount(-)
10/31/2023	$8.54	$7.26	-14.99%
10/31/2022	$8.61	$7.50	-12.89%

During the fiscal year ended October 31, 2023, AOD's NAV was within a range of $8.39 to $9.72 and AOD's market price traded within a range of $7.02 to $8.54. During the fiscal year ended October 31, 2023, the AOD's shares traded within a range of a premium(+)/discount(-) of -10.99% to -17.12%.

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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. NAV return data includes investment management fees, custodial charges and administrative fees (such as Trustee and legal fees) and assumes the reinvestment of all distributions.

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2	Assuming the reinvestment of dividends and distributions.

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3	The Funds' total return is based on the reported 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.

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4

The Morgan Stanley Capital International (MSCI) All Country (AC) World Index Net DailyTotal Return (DTR) is an unmanaged index considered representative of developed and emerging market stock markets.The index is calculated net of withholding taxes to which the Funds are generally subject. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.

Distribution Policy

The Funds' distributions to common shareholders and the annualized distribution rates based on market price and NAV, respectively, for the fiscal year ended October 31, 2023 are shown in the table below:

Fund	Distribution per share	NAV annualized distribution rate	Market Price annualized distribution rate
AGD	$0.78	7.88%	9.29%
AOD	$0.69	8.08%	9.50%

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 November 9, 2023 and December 11, 2023, AOD and AGD announced that they will pay on November 30, 2023 and January 10, 2024, respectively, a distribution per share to all shareholders of record as of November 22, 2023 and December 29, 2023, respectively. AGD and AOD will pay a distribution of $0.065 and $0.0575 per share, respectively.

The Funds' 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 nontaxable return of capital. This policy is subject to an annual review as well as regular review at the quarterly meetings of each Fund's Board of Trustees (each, a "Board" and collectively, the "Boards") unless market conditions require an earlier evaluation.

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 a Fund's 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 Funds' transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Funds' 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 Funds' transfer agent.

Open Market Repurchase Program

The Boards approved an open market repurchase and discount management policy (the “Program”). The Program allows the Funds to purchase, in the open market, their outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Funds' investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. If shares are repurchased, a Fund will report repurchase activity on its website on a monthly basis. For the fiscal year ended October 31, 2023, the Funds did not repurchase any shares through the Program.

On a quarterly basis, the Boards will receive information on any transactions made pursuant to this policy during the prior quarter and management will post the number of shares repurchased on a Fund's website on a monthly basis.  Under the terms of the Program, each Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market during any 12 month period.

Portfolio Holdings Disclosure

The Funds' complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Funds' semi-annual and annual reports to shareholders. Each 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 http://www.sec.gov. The Funds make the information available to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.

Proxy Voting

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds 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) upon request without charge by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC’s website at http://www.sec.gov.

Investor Relations Information

As part of abrdn’s commitment to shareholders, we invite you to visit the Funds on the web at www.abrdnagd.com (AGD) and www.abrdnaod.com (AOD). On the web you can view monthly fact sheets, quarterly commentary, distribution and performance information, and other Fund literature.

Enroll in abrdn’s email services and be among the first to receive the latest closed-end fund news, announcements, videos, and other

2	2023 Annual Report

Market review - AGD

Global stock markets generally rose over the past 12 months under review. Inflation dominated the economic environment. Central banks in western economies raised interest rates faster and much further than previously anticipated to counter multi-decade-high inflation. Despite these aggressive central bank actions, core inflation—which strips out volatile items such as energy and food—stayed at elevated levels in many countries. Nevertheless, global economic growth held up better than many investors expected, defying fears of a recession triggered by higher rates.

As  U.S. and Eurozone inflation trended down towards the end of 2022, investors’ hopes rose that an end to interest rate rises could be in sight. Therefore, 2023 started with strong stock market gains. However, the collapse of two regional U.S. banks and the forced sale of Credit Suisse to rival UBS in March then evoked fears of a banking crisis. Despite an initial sell-off, stock markets recovered, helped by expectations of lower peak interest rates. After more market volatility¹ in April and May, equities performed strongly over June and July due to news of a compromise agreement on the U.S. debt ceiling² and further encouraging inflation data. This was despite still-hawkish rhetoric from central banks. Equities then generated negative returns in August, September, and October given concerns that interest rates would stay higher for longer, with the outbreak of war between Israel and Hamas adding to existing inflationary worries.

Fund performance review - AGD

The abrdn Global Dynamic Dividend Fund returned 7.0% on a net asset value³ basis for the 12-month period ending October 31, 2023, versus the 10.5% return of its benchmark, the Morgan Stanley Capital International (MSCI) All Country (AC) World Index (Net Daily Total Return), during the same period. The unlevered NAV returned 7.1% for the 12-month period ending October 2023 demonstrating that the leverage had a negative impact of -0.1% to fund performance over that timeframe.

The Fund posted a positive total return but underperformed its benchmark. Asset allocation and, to a lesser extent, stock selection detracted from performance. The Fund’s stock selection and underweight⁴ positions in both the information technology and communication services sectors were headwinds. By region, North

America detracted the most, mainly due to stock selection, with a small negative effect from being underweight. Africa and the Middle East only slightly added value, as a positive effect from being underweight was partially offset by negative stock selection.

The largest detractors from performance were the Fund’s lack of exposure to semiconductor manufacturer NVIDIA and social media giant Meta Platforms (with the former only paying a small dividend and the latter not paying a dividend). A holding in financial services technology provider Fidelity National Information Services also hurt performance.

Shares in U.S.-based chipmaker NVIDIA surged after the company gave a very bullish sales forecast on the demand for artificial intelligence (AI) processors. This took the stock to an all-time high and dragged the rest of the sector up with it. Shares in social media and advertising giant Meta Platforms also rose strongly as the company benefited from its aggressive cost-cutting programme and its investments in AI. The latter have helped the company to attract traffic to Facebook and Instagram, as well as to increase its advertising revenues. Shares in Fidelity National Information Services, the U.S.-listed payment services provider, were weak due to macroeconomic headwinds, particularly within its merchant and banking segments.

Conversely, the Fund’s stock selection was positive in both the materials and financials sectors, with an overweight⁵ exposure to the former also beneficial. By region, Asia-Pacific (excluding Japan) was the largest positive due to stock selection. The overweight exposure to Europe (excluding the U.K.) also added value, although stock selection was a negative.

At the individual stock level,  contributors to performance included holdings in semiconductor manufacturers BE Semiconductor Industries and Broadcom, as well as Japan-listed Mitsubishi UFJ Financial Group.

BE Semiconductor Industries benefited from U.S.-based chipmaker NVIDIA’s previously mentioned very bullish sales forecast on the demand for AI processors. Broadcom shares performed well as the company reported strong results, helped by surging demand for its

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1	If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable, it is said to have 'low volatility'. Volatility can be used as a measure of risk.

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2	The maximum amount of money that the U.S. government is allowed to borrow to meet its obligations.

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3	A key measure of the value of a company, fund, or trust is the total value of assets less liabilities, divided by the number of shares.

{foots1}

4	A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio.

{foots1}

5	A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio.

AI-related semiconductors. Mitsubishi UFJ aided relative performance, largely due to interest rate actions initiated by the Bank of Japan.

Regarding the use of derivatives, we continued to hedge a portion of the Fund’s currency exposure to the euro during the reporting period.

The Fund earns income through a combination of investing in companies that pay dividends and implementing a dividend-capture strategy. In a dividend-capture trade, the Fund sells a stock on or shortly after the stock's ex-dividend⁶ date and reinvests the sales proceeds into one or more other stocks that are expected to pay dividends before the next dividend payment on the stock that it is selling. While employing this strategy, the Fund purchases companies that pay regular and/or special dividends. 

The monthly distribution⁷ reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a significant impact on the Fund’s investment strategy over the reporting period. During the 12-month period ending October 31, 2023, the distributions comprised the vast majority of dividend income. The Fund issued distributions totaling $0.78 per share for the 12-month period ending October 31, 2023.

Outlook - AGD

Pressures caused by high energy prices, geopolitical tensions, the cost-of-living crisis, and rising interest rates still prevail in many parts

of the world and will be around for some time, in our view. While markets continue to move higher in many areas, particularly in the U.S., it remains a very narrow handful of stocks that are behind this. Against such a challenging backdrop, the portfolio will remain diversified, defensive, and focused on businesses best positioned to manage financial pressures through to times of greater market stability. We believe that periods of market weakness, when they occur, represent an opportunity for the long-term investor. We reiterate the importance of a diversified portfolio with a bottom-up investment approach focused on quality characteristics.

Risk Considerations

Past performance is not an indication of future results.

Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to risks associated with less stringent accounting and regulatory standards, the impact of currency exchange rate fluctuation, political and economic instability, reduced information about issuers, higher transaction costs and delayed settlement. Equity stocks of small- and mid-cap companies carry greater risk, and more volatility, than equity stocks of larger, more established companies. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.

abrdn Investments Limited 

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6

Also abbreviated as 'xd', this is a share sold without the right to receive the declared dividend payment which is marked as due to those shareholders who are on the share register. The stock market authorities usually specify the date on which a share will begin trading 'xd'. The share price invariably drops when the share goes 'xd' taking the known income of the dividend out of the share price.

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7	The payment of any income generated by a fund.

Market review - AOD

Global stock markets generally rose over the past 12 months under review. Inflation dominated the economic environment. Central banks in western economies raised interest rates faster and much further than previously anticipated to counter multi-decade-high inflation. Despite these aggressive central bank actions, core inflation—which strips out volatile items such as energy and food—stayed at elevated levels in many countries. Nevertheless, global economic growth held up better than many investors expected, defying fears of a recession triggered by higher rates.

As U.S. and Eurozone inflation trended down towards the end of 2022, investors’ hopes rose that an end to interest rate rises could be in sight. Therefore, 2023 started with strong stock market gains. However, the collapse of two regional U.S. banks and the forced sale of Credit Suisse to rival UBS in March then evoked fears of a banking crisis. Despite an initial sell-off, stock markets recovered, helped by expectations of lower peak interest rates. After more market volatility¹ in April and May, equities performed strongly over June and July due to news of a compromise agreement on the U.S. debt ceiling² and further encouraging inflation data. This was despite still-hawkish rhetoric from central banks. Equities then generated negative returns in August, September, and October given concerns that interest rates would stay higher for longer, with the outbreak of war between Israel and Hamas adding to existing inflationary worries.

Fund performance review - AOD

The abrdn Total Dynamic Dividend Fund returned 8.0% on a net asset value³ basis for the 12-month period ending October 31, 2023, versus the 10.5% return of its benchmark, the Morgan Stanley Capital International (MSCI) All Country (AC) World Index (Net Daily Total Return), during the same period. The unlevered NAV returned 8.1% for the 12-month period ending October 2023 demonstrating that the leverage had a negative impact of -0.1% to fund performance over that timeframe.

The Fund posted a positive total return but underperformed its benchmark. Asset allocation and, to a lesser extent, stock selection detracted from performance. The Fund’s stock selection and underweight⁴ positions in both the communication services and information technology sectors were headwinds. By region, North

America detracted the most, due to stock selection. Japan only had a small positive impact as the value added from stock selection was mostly offset by a negative effect from being underweight.

The largest detractors from performance were the Fund’s lack of exposure to semiconductor manufacturer NVIDIA and social media giant Meta Platforms (with the former only paying a small dividend and the latter not paying a dividend). A holding in financial services technology provider Fidelity National Information Services also hurt performance.

Shares in U.S.-based chipmaker NVIDIA surged after the company gave a very bullish sales forecast on the demand for artificial intelligence (AI) processors. This took the stock to an all-time high and dragged the rest of the sector up with it. Shares in social media and advertising giant Meta Platforms also rose strongly as the company benefited from its aggressive cost-cutting programme and its investments in AI. The latter have helped the company to attract traffic to Facebook and Instagram, as well as to increase its advertising revenues. Shares in Fidelity National Information Services, the U.S.-listed payment services provider, were weak due to macroeconomic headwinds, particularly within its merchant and banking segments.

Conversely, the Fund’s stock selection was positive in both the materials and financials sectors, with an overweight⁵ exposure to the former also beneficial. By region, Asia-Pacific (excluding Japan) was the largest positive due to stock selection. Exposure to the U.K. also added value as positive stock selection was only partially offset by a negative effect from being overweight.

At the individual stock level, key contributors to performance included holdings in semiconductor manufacturers BE Semiconductor Industries and Broadcom, as well as U.K.-listed industrial turnaround specialist Melrose Industries.

BE Semiconductor Industries benefited from NVIDIA’s previously mentioned very bullish sales forecast on the demand for AI processors. Melrose Industries spun off its automotive business to become a pure-play aerospace company. In addition, it held its first ‘capital markets day’ as a standalone company. Management presented a comprehensive overview of the aerospace business' positive fundamentals. Broadcom shares performed well as the

{foots1}

1	If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable, it is said to have 'low volatility'. Volatility can be used as a measure of risk.

{foots1}

2	The maximum amount of money that the U.S. government is allowed to borrow to meet its obligations.

{foots1}

3	A key measure of the value of a company, fund, or trust is the total value of assets less liabilities, divided by the number of shares.

{foots1}

4	A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio.

{foots1}

5	A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio.

company reported strong results, helped by surging demand for its AI-related semiconductors.

Regarding the use of derivatives, we continued to hedge a portion of the Fund’s currency exposure to the euro during the reporting period.

The Fund earns income through a combination of investing in companies that pay dividends and implementing a dividend-capture strategy. In a dividend-capture trade, the Fund sells a stock on or shortly after the stock's ex-dividend⁶ date and reinvests the sales proceeds into one or more other stocks that are expected to pay dividends before the next dividend payment on the stock that it is selling. While employing this strategy, the Fund purchases companies that pay regular and/or special dividends.

The monthly distribution⁷ reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a significant impact on the Fund’s investment strategy over the reporting period. During the 12-month period ending October 31, 2023, the distributions comprised of net investment income and return of capital. The Fund issued distributions totaling $0.69 per share for the 12-month period ending October 31, 2023.

Outlook - AOD

Pressures caused by high energy prices, geopolitical tensions, the cost-of-living crisis, and rising interest rates still prevail in many parts of the world and will be around for some time, in our view. While

markets continue to move higher in many areas, particularly in the U.S., it remains a very narrow handful of stocks that are behind this. Against such a challenging backdrop, the portfolio will remain diversified, defensive, and focused on businesses best positioned to manage financial pressures through to times of greater market stability. We believe that periods of market weakness, when they occur, represent an opportunity for the long-term investor. We reiterate the importance of a diversified portfolio with a bottom-up investment approach focused on quality characteristics.

Risk Considerations

Past performance is not an indication of future results.

Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to risks associated with less stringent accounting and regulatory standards, the impact of currency exchange rate fluctuation, political and economic instability, reduced information about issuers, higher transaction costs and delayed settlement. Equity stocks of small- and mid-cap companies carry greater risk, and more volatility, than equity stocks of larger, more established companies. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.

abrdn Investments Limited 

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6

Also abbreviated as 'xd', this is a share sold without the right to receive the declared dividend payment which is marked as due to those shareholders who are on the share register. The stock market authorities usually specify the date on which a share will begin trading 'xd'. The share price invariably drops when the share goes 'xd' taking the known income of the dividend out of the share price.

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7	The payment of any income generated by a fund.

	Shares or Principal Amount		Value
COMMON STOCKS—97.7%
AUSTRALIA—0.8%
Materials—0.8%
Rio Tinto PLC, ADR		31,500	$   2,026,710
BRAZIL—1.8%
Industrials—0.9%
CCR SA		969,000	2,302,498
Materials—0.9%
Vale SA, ADR		152,000	2,083,920
Total Brazil			4,386,418
CANADA—1.5%
Energy—1.5%
Enbridge, Inc.(a)		116,600	3,735,864
CHINA—2.2%
Communication Services—0.9%
Tencent Holdings Ltd.		56,700	2,098,395
Financials—0.9%
Ping An Insurance Group Co. of China Ltd., H Shares		435,700	2,210,078
Real Estate—0.4%
China Vanke Co. Ltd., H Shares		1,165,300	1,090,203
Total China			5,398,676
DENMARK—1.4%
Financials—1.4%
Tryg A/S		170,500	3,329,448
EGYPT—0.5%
Energy—0.5%
Energean PLC		125,800	1,302,738
FINLAND—0.6%
Information Technology—0.6%
Nokia OYJ		416,406	1,386,915
FRANCE—6.2%
Consumer Discretionary—0.9%
LVMH Moet Hennessy Louis Vuitton SE		3,200	2,290,977
Consumer Staples—1.7%
Danone SA		49,000	2,915,032
Pernod Ricard SA		6,600	1,172,004
			4,087,036
Energy—1.4%
TotalEnergies SE, ADR(a)		50,900	3,389,940
Industrials—0.5%
Teleperformance SE		11,800	1,357,492
Utilities—1.7%
Engie SA		260,900	4,149,584
Total France			15,275,029
GERMANY—2.5%
Financials—1.2%
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen		7,200	2,889,417

	Shares or Principal Amount		Value
Utilities—1.3%
RWE AG		81,900	$   3,133,937
Total Germany			6,023,354
HONG KONG—1.0%
Financials—1.0%
Hong Kong Exchanges & Clearing Ltd.		70,600	2,469,775
JAPAN—1.8%
Financials—1.1%
Mitsubishi UFJ Financial Group, Inc.		319,000	2,676,138
Real Estate—0.7%
GLP J-REIT		2,000	1,791,314
Total Japan			4,467,452
NETHERLANDS—4.3%
Consumer Staples—0.5%
Heineken NV		13,300	1,194,918
Financials—1.1%
ING Groep NV, Series N		209,500	2,685,900
Information Technology—2.7%
ASML Holding NV		4,600	2,765,154
BE Semiconductor Industries NV		39,100	4,039,018
			6,804,172
Total Netherlands			10,684,990
NORWAY—0.9%
Communication Services—0.9%
Telenor ASA		224,700	2,296,972
SINGAPORE—1.3%
Financials—1.3%
Oversea-Chinese Banking Corp. Ltd.		342,000	3,170,720
SPAIN—0.9%
Consumer Discretionary—0.9%
Amadeus IT Group SA		36,660	2,092,289
SWEDEN—0.6%
Industrials—0.6%
Atlas Copco AB, A Shares		105,900	1,371,301
TAIWAN—1.1%
Information Technology—1.1%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		170,200	2,779,793
UNITED KINGDOM—6.8%
Communication Services—0.8%
Vodafone Group PLC, ADR(a)		208,700	1,928,388
Consumer Discretionary—1.1%
Taylor Wimpey PLC		2,071,592	2,797,980
Energy—0.2%
Capricorn Energy PLC		226,942	430,883
Financials—1.4%
Allfunds Group PLC		177,100	906,420
London Stock Exchange Group PLC		25,700	2,593,002
			3,499,422

See accompanying Notes to Financial Statements.

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
UNITED KINGDOM (continued)
Health Care—2.3%
AstraZeneca PLC, ADR(a)		49,900	$   3,155,177
Dechra Pharmaceuticals PLC		54,234	2,513,690
			5,668,867
Industrials—1.0%
Melrose Industries PLC		433,033	2,465,591
Total United Kingdom			16,791,131
UNITED STATES—61.5%
Communication Services—2.8%
Alphabet, Inc., Class C(a)(b)		36,000	4,510,800
TKO Group Holdings, Inc.		30,271	2,481,617
			6,992,417
Consumer Discretionary—5.4%
Aptiv PLC(a)(b)		24,400	2,127,680
Genuine Parts Co.(a)		18,600	2,396,796
Las Vegas Sands Corp.		35,400	1,680,084
Lowe's Cos., Inc.(a)		16,100	3,068,177
TJX Cos., Inc. (The)(a)		46,100	4,060,027
			13,332,764
Consumer Staples—5.8%
Coca-Cola Co. (The)(a)		58,700	3,315,963
Keurig Dr Pepper, Inc.		81,100	2,459,763
Mondelez International, Inc., Class A(a)		50,300	3,330,363
Nestle SA		25,210	2,718,614
Target Corp.(a)		21,700	2,404,143
			14,228,846
Energy—1.2%
Williams Cos., Inc. (The)(a)		85,585	2,944,124
Financials—7.6%
Bank of America Corp.(a)		86,500	2,278,410
Blackstone, Inc., Class A		27,354	2,526,142
CME Group, Inc.		13,300	2,839,018
Fidelity National Information Services, Inc.		43,339	2,128,378
Goldman Sachs Group, Inc. (The)		9,500	2,884,295
Huntington Bancshares, Inc.		235,700	2,274,505
JPMorgan Chase & Co.		20,900	2,906,354
MetLife, Inc.		16,000	960,160
			18,797,262
Health Care—10.5%
AbbVie, Inc.(a)		24,212	3,418,250
Baxter International, Inc.		49,700	1,611,771
Bristol-Myers Squibb Co.(a)		42,408	2,185,284
CVS Health Corp.		37,100	2,560,271
Eli Lilly & Co.(a)		6,600	3,655,938
Medtronic PLC(a)		29,000	2,046,240
Merck & Co., Inc.		23,985	2,463,259
Roche Holding AG		8,210	2,115,796
Sanofi SA		30,900	2,805,913
UnitedHealth Group, Inc.(a)		5,592	2,994,852
			25,857,574
Industrials—6.6%
FedEx Corp.(a)		13,500	3,241,350

	Shares or Principal Amount		Value
Ferrovial SE		103,000	$   3,099,892
Norfolk Southern Corp.		11,200	2,136,848
Schneider Electric SE		20,000	3,077,146
Stanley Black & Decker, Inc.		22,800	1,939,140
Waste Management, Inc.		16,500	2,711,445
			16,205,821
Information Technology—12.8%
Amdocs Ltd.		36,500	2,925,840
Analog Devices, Inc.		18,100	2,847,673
Apple, Inc.(a)		54,000	9,221,580
Broadcom, Inc.(a)		5,326	4,481,136
Cisco Systems, Inc.		63,600	3,315,468
Microsoft Corp.(a)		25,626	8,664,407
			31,456,104
Materials—4.0%
Air Products & Chemicals, Inc.		7,900	2,231,276
Linde PLC		9,200	3,514,950
Newmont Corp., CDI(b)		107,160	4,106,487
			9,852,713
Real Estate—1.8%
American Tower Corp., REIT		11,500	2,049,185
Gaming and Leisure Properties, Inc., REIT(a)		53,991	2,450,652
			4,499,837
Utilities—3.0%
CMS Energy Corp.(a)		43,800	2,380,092
FirstEnergy Corp.		59,600	2,121,760
NextEra Energy Partners LP		22,800	617,196
NextEra Energy, Inc.(a)		37,100	2,162,930
			7,281,978
Total United States			151,449,440
Total Common Stocks			240,439,015
CORPORATE BONDS—0.0%
UNITED STATES—0.0%
Diversified Financial Services—0.0%
Fixed Income Pass-Through Trust, Class B, Series 2007-C, 0.00%, 01/15/2087(c)	$	500,000	500
Total Corporate Bonds			500
PREFERRED STOCKS—1.2%
SOUTH KOREA—1.2%
Information Technology—1.2%
Samsung Electronics Co. Ltd.		75,400	3,010,323
Total Preferred Stocks			3,010,323
SHORT-TERM INVESTMENT—0.6%
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.30%(d)		1,616,230	1,616,230
Total Short-Term Investment			1,616,230
Total Investments (Cost $236,488,786)(e)—99.5%			245,066,068
Other Assets in Excess of Liabilities—0.5%			1,152,300
Net Assets—100.0%			$246,218,368

    

See Notes to Financial Statements.

(a)	All or a portion of the security has been designated as collateral for the line of credit.
(b)	Non-income producing security.
(c)	Denotes a security issued under Regulation S or Rule 144A.
(d)	Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2023.
(e)	See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.

    

ADR	American Depositary Receipt
EUR	Euro Currency
PLC	Public Limited Company
REIT	Real Estate Investment Trust
USD	U.S. Dollar

At October 31, 2023, the Fund held the following forward foreign currency contracts:

    

Sale Contracts Settlement Date	Counterparty		Currency Purchased	Amount Purchased	Currency Sold	Amount Sold	Fair Value	Unrealized Appreciation/ (Depreciation)
United States Dollar/Euro
01/19/2024	Royal Bank of Canada		USD	20,666,921	EUR	19,400,000	$20,604,104	$62,817

 

	Shares		Value
COMMON STOCKS—102.3%
AUSTRALIA—0.8%
Materials—0.8%
Rio Tinto PLC, ADR		118,000	$   7,592,120
BRAZIL—1.9%
Industrials—1.0%
CCR SA		3,650,100	8,673,218
Materials—0.9%
Vale SA, ADR		585,500	8,027,205
Total Brazil			16,700,423
CANADA—1.6%
Energy—1.6%
Enbridge, Inc.		444,600	14,244,984
CHINA—2.3%
Communication Services—0.9%
Tencent Holdings Ltd.		220,200	8,149,323
Financials—0.9%
Ping An Insurance Group Co. of China Ltd., H Shares		1,652,900	8,384,294
Real Estate—0.5%
China Vanke Co. Ltd., H Shares		4,490,800	4,201,394
Total China			20,735,011
DENMARK—1.4%
Financials—1.4%
Tryg A/S		634,900	12,398,045
FINLAND—0.6%
Information Technology—0.6%
Nokia OYJ		1,531,806	5,101,957
FRANCE—7.1%
Consumer Discretionary—1.1%
LVMH Moet Hennessy Louis Vuitton SE		13,550	9,700,856
Consumer Staples—1.9%
Danone SA		203,300	12,094,410
Pernod Ricard SA		30,500	5,416,078
			17,510,488
Energy—1.8%
TotalEnergies SE, ADR(a)		240,300	16,003,980
Industrials—0.6%
Teleperformance SE		44,600	5,130,858
Utilities—1.7%
Engie SA		976,200	15,526,348
Total France			63,872,530
GERMANY—2.7%
Financials—1.2%
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen		27,800	11,156,361
Utilities—1.5%
RWE AG		343,400	13,140,340
Total Germany			24,296,701
HONG KONG—1.0%
Financials—1.0%
Hong Kong Exchanges & Clearing Ltd.		266,500	9,322,874

	Shares		Value
JAPAN—1.9%
Financials—1.1%
Mitsubishi UFJ Financial Group, Inc.		1,232,700	$  10,341,302
Real Estate—0.8%
GLP J-REIT		7,600	6,806,993
Total Japan			17,148,295
NETHERLANDS—4.6%
Consumer Staples—0.6%
Heineken NV		62,500	5,615,216
Financials—1.1%
ING Groep NV, Series N		793,700	10,175,651
Information Technology—2.9%
ASML Holding NV		16,800	10,098,823
BE Semiconductor Industries NV		152,800	15,784,194
			25,883,017
Total Netherlands			41,673,884
NORWAY—1.0%
Communication Services—1.0%
Telenor ASA		890,530	9,103,347
SINGAPORE—1.3%
Financials—1.3%
Oversea-Chinese Banking Corp. Ltd.		1,298,471	12,038,269
SPAIN—1.7%
Communication Services—0.8%
Cellnex Telecom SA(b)(c)		241,800	7,107,975
Consumer Discretionary—0.9%
Amadeus IT Group SA		138,600	7,910,292
Total Spain			15,018,267
SWEDEN—0.6%
Industrials—0.6%
Atlas Copco AB, A Shares		404,400	5,236,583
TAIWAN—1.4%
Information Technology—1.4%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		752,000	12,282,045
UNITED KINGDOM—5.6%
Communication Services—0.8%
Vodafone Group PLC, ADR		777,900	7,187,796
Consumer Discretionary—1.2%
Taylor Wimpey PLC		7,944,607	10,730,324
Energy—0.1%
Capricorn Energy PLC		655,111	1,243,825
Financials—1.1%
London Stock Exchange Group PLC		98,400	9,928,071
Health Care—1.3%
AstraZeneca PLC, ADR		192,300	12,159,129
Industrials—1.1%
Melrose Industries PLC		1,664,770	9,478,821
Total United Kingdom			50,727,966

See accompanying Notes to Financial Statements.

	Shares		Value
COMMON STOCKS (continued)
UNITED STATES—64.8%
Communication Services—2.9%
Alphabet, Inc., Class C(a)(c)		136,200	$  17,065,860
TKO Group Holdings, Inc.		114,866	9,416,715
			26,482,575
Consumer Discretionary—5.8%
Aptiv PLC(a)(c)		91,100	7,943,920
Genuine Parts Co.		72,500	9,342,350
Las Vegas Sands Corp.		138,600	6,577,956
Lowe's Cos., Inc.(a)		68,000	12,958,760
TJX Cos., Inc. (The)(a)		177,700	15,650,039
			52,473,025
Consumer Staples—6.2%
Coca-Cola Co. (The)		239,400	13,523,706
Keurig Dr Pepper, Inc.		303,500	9,205,155
Mondelez International, Inc., Class A(a)		190,200	12,593,142
Nestle SA		100,300	10,816,224
Target Corp.(a)		85,500	9,472,545
			55,610,772
Energy—1.3%
Williams Cos., Inc. (The)		326,200	11,221,280
Financials—7.7%
Bank of America Corp.(a)		306,700	8,078,478
Blackstone, Inc., Class A		110,000	10,158,500
CME Group, Inc.		50,700	10,822,422
Fidelity National Information Services, Inc.		148,900	7,312,479
Goldman Sachs Group, Inc. (The)		34,800	10,565,628
Huntington Bancshares, Inc.(a)		766,300	7,394,795
JPMorgan Chase & Co.		77,300	10,749,338
MetLife, Inc.		61,900	3,714,619
			68,796,259
Health Care—11.3%
AbbVie, Inc.		91,000	12,847,380
Baxter International, Inc.		157,300	5,101,239
Bristol-Myers Squibb Co.(a)		162,900	8,394,237
CVS Health Corp.		139,300	9,613,093
Eli Lilly & Co.		27,100	15,011,503
Medtronic PLC(a)		118,900	8,389,584
Merck & Co., Inc.		89,100	9,150,570
Roche Holding AG		42,200	10,875,344
Sanofi SA		118,593	10,768,984
UnitedHealth Group, Inc.(a)		21,900	11,728,764
			101,880,698
Industrials—6.8%
FedEx Corp.(a)		51,800	12,437,180
Ferrovial SE		384,314	11,566,330
Norfolk Southern Corp.(a)		39,400	7,517,126
Schneider Electric SE		80,800	12,431,670
Stanley Black & Decker, Inc.		87,400	7,433,370
Waste Management, Inc.		62,100	10,204,893
			61,590,569

	Shares		Value
Information Technology—13.5%
Amdocs Ltd.		142,100	$  11,390,736
Analog Devices, Inc.		68,600	10,792,838
Apple, Inc.(a)		213,600	36,476,472
Broadcom, Inc.(a)		20,800	17,500,496
Cisco Systems, Inc.(a)		245,300	12,787,489
Microsoft Corp.(a)		97,200	32,864,292
			121,812,323
Materials—4.2%
Air Products & Chemicals, Inc.		30,700	8,670,908
Linde PLC		35,700	13,639,534
Newmont Corp., CDI(c)		410,840	15,743,832
			38,054,274
Real Estate—2.0%
American Tower Corp., REIT		46,400	8,268,016
Gaming and Leisure Properties, Inc., REIT		206,800	9,386,652
			17,654,668
Utilities—3.1%
CMS Energy Corp.(a)		156,000	8,477,040
FirstEnergy Corp.(a)		238,000	8,472,800
NextEra Energy Partners LP		84,900	2,298,243
NextEra Energy, Inc.(a)		146,000	8,511,800
			27,759,883
Total United States			583,336,326
Total Common Stocks			920,829,627
PREFERRED STOCKS—1.2%
SOUTH KOREA—1.2%
Information Technology—1.2%
Samsung Electronics Co. Ltd.		288,800	11,530,256
Total Preferred Stocks			11,530,256
SHORT-TERM INVESTMENT—0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.30%(d)		6,062,282	6,062,282
Total Short-Term Investment			6,062,282
Total Investments (Cost $825,158,467)(e)—104.2%			938,422,165
Liabilities in Excess of Other Assets—(4.2%)			(38,157,740)
Net Assets—100.0%			$900,264,425

    

(a)	All or a portion of the security has been designated as collateral for the line of credit.
(b)	Denotes a security issued under Regulation S or Rule 144A.
(c)	Non-income producing security.
(d)	Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2023.
(e)	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

The Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their 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. The accounting records of the Funds are maintained in U.S. Dollars and the U.S. Dollar is used as both the functional and reporting currency.

a.  Security Valuation:

The Funds value their securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Funds' 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. Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the "1940 Act"), the Board designated abrdn Investments Limited (the "Adviser") as the

valuation designee ("Valuation Designee") for the Funds to perform the fair value determinations relating to Fund investments for which market quotations are not readily available or deemed unreliable.

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Funds disclose the fair value of their 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

2023 Annual Report

23

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.

Open-end mutual funds are valued at the respective NAV as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time (defined below). A security using any of these pricing methodologies is generally determined to be a Level 1 investment.

Equity securities that are traded on an exchange are valued at the last quoted sale price or the official close 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.

Foreign equity securities that are traded on foreign exchanges that close prior to the 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. These valuation factors are used when pricing a Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time a 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 generally 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.

Derivative instruments are generally valued according to the following procedures. Exchange traded derivatives are generally Level 1

investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward currency exchange contracts are generally valued based on the current spot exchange rates and the forward exchange rate points (ex. 1-month, 3-month) that are obtained from an approved pricing agent. Based on the actual settlement dates of the forward contracts held, an interpolated value of the forward points is combined with the spot exchange rate to derive the valuation. Futures contracts are generally valued at the most recent settlement price as of NAV determination. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). Exchange-traded options are valued at the last quoted sales price. In the absence of a sales price, options are valued at the mean of the bid/ask price quoted at the close on the exchange on which the options trade. 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 a 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 Funds sweep 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 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share 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 Valuation Designee, 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  Adviser 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 (unadjusted) in active markets for identical investments;

Level 2 - other significant observable inputs (including valuation factors, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk, etc.); or

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

24	2023 Annual Report

b.  Restricted Securities:

Restricted securities are privately-placed securities whose resale is restricted under U.S. securities laws. The Funds 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 Funds, but resale of such securities in the U.S. is permitted only in limited circumstances.

c.  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 relevant rates of exchange prevailing on the respective dates of such transactions.

The Funds do 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 Funds report 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 Funds' books and the U.S. Dollar equivalent of the amounts actually received.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. Dollar. Generally, when the U.S. Dollar rises in value against foreign currency, the Funds' investments denominated in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S. Dollar falls in relative value.

d.  Derivative Financial Instruments:

The Funds are 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 Statements 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 a 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 exchange holdings and their currencies.

The forward contract is marked-to-market daily and the change in market value is recorded by a Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent pricing provider. When the forward contract is closed, a 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. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or from unanticipated movements in exchange rates. During the fiscal year ended October 31, 2023, the Funds used forward contracts to hedge their currency exposure.

While a Fund may enter into forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve certain risks. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from

26	2023 Annual Report

unanticipated movements in exchange rates. Thus, while a Fund may benefit from such transactions, unanticipated changes in currency prices may result in a poorer overall performance for a Fund than if it had not engaged in any such transactions. Moreover, there may be an imperfect correlation between a 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 a Fund from achieving a complete hedge, which will expose the Fund to the risk of foreign exchange loss.

Forward contracts are subject to the risk that the