As filed with the Securities and Exchange Commission
on February 6, 2024
Securities Act File No. [●]
Investment Company Act File No. 811-08266
United States
Securities and Exchange
Commission
Washington, D.C. 20549
FORM N-2
☒ Registration
Statement under the Securities Act of 1933
☐ Pre-Effective Amendment No.
☐ Post-Effective Amendment No.
and/or
☒ Registration Statement under the Investment Company Act of 1940
☒ Amendment No. 13
The
India Fund, Inc.
(Exact Name of Registrant as Specified in Charter)
1900 Market Street, Suite 200
Philadelphia, PA 19103
(Address of Principal Executive
Offices)
215-405-5700
(Registrant’s Telephone
Number, Including Area Code)
Lucia Sitar, Esq.
c/o abrdn Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
(Name and Address of Agent
for Service)
Copies to:
Thomas
C. Bogle, Esq.
William
J. Bielefeld, Esq.
Dechert
LLP
1900
K Street, NW
Washington,
DC 20006
Approximate
date of proposed public offering: From time to time after the effective date of this Registration Statement.
☐ Check
box if the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans.
☒ Check
box if any securities being registered on this Form will be offered on a delayed or continuous basis in reliance on Rule 415
under the Securities Act of 1933 (“Securities Act”), other than securities offered in connection with a dividend reinvestment
plan.
☒ Check
box if this Form is a registration statement pursuant to General Instruction A.2 or a post-effective amendment thereto.
☐ Check
box if this Form is a registration statement pursuant to General Instruction B or a post-effective amendment thereto that will become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act.
☐ Check
box if this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction B to register additional
securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act.
It
is proposed that this filing will become effective (check appropriate box):
☐
when declared effective pursuant to section 8(c) of the Securities Act
Check each box that
appropriately characterizes the Registrant:
☒ Registered
Closed-End Fund (closed-end company that is registered under the Investment Company Act of 1940 (the “Investment Company Act”)).
☐ Business
Development Company (closed-end company that intends or has elected to be regulated as a business development company under the Investment
Company Act.
☐ Interval
Fund (Registered Closed-End Fund or a Business Development Company that makes periodic repurchase offers under Rule 23c-3 under
the Investment Company Act).
☒ A.2
Qualified (qualified to register securities pursuant to General Instruction A.2 of this Form).
☐ Well-Known
Seasoned Issuer (as defined by Rule 405 under the Securities Act).
☐ Emerging
Growth Company (as defined by Rule 12b-2 under the Securities and Exchange Act of 1934).
☐ If
an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
☐ New
Registrant (registered or regulated under the Investment Company Act for less than 12 calendar months preceding this filing).
The information in this Prospectus
is not complete and may be changed. We may not sell these securities until the Registration Statement filed with the Securities and Exchange
Commission is effective. This Prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities
in any state where the offer or sale is not permitted.
Subject To Completion Preliminary
Prospectus dated February 6, 2024
BASE PROSPECTUS
$[ ]
The India Fund, Inc.
Common Stock
Preferred Stock
Notes
Subscription Rights for
Common Stock
The Fund. The India Fund, Inc. (the “Fund”)
is a non-diversified closed-end management investment company.
Investment Objective. The Fund’s investment objective
is long-term capital appreciation, which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Principal Investment Strategy. The Fund invests primarily in
the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, convertible bonds, notes and debentures, equity interests in
trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
Offering. The Fund may offer, from time to time, up to
$[ ] aggregate initial offering price of common stock of beneficial interest, par value $0.001 per share (“Common Stock”),
preferred stock (“Preferred Stock”), promissory notes (“Notes”) subscription rights to purchase Common Stock
(“Rights” and collectively with the Common Stock and Preferred Stock, “Securities”) in one or more offerings
in amounts, at prices and on terms set forth in one or more supplements to this Prospectus (each a “Prospectus Supplement”).
You should read this Prospectus and any related Prospectus Supplement carefully before you decide to invest in the Securities.
The Fund may offer Securities (1) directly to one or more purchasers,
(2) through agents that the Fund may designate from time to time or (3) to or through underwriters or dealers. The Prospectus
Supplement relating to a particular offering of Securities will identify any agents or underwriters involved in the sale of Securities,
and will set forth any applicable purchase price, fee, commission or discount arrangement between the Fund and agents or underwriters
or among underwriters or the basis upon which such amount may be calculated. The Fund may not sell Securities through agents, underwriters
or dealers without delivery of this Prospectus and a Prospectus Supplement. See “Plan of Distribution.”
Investing in Securities involves risks, including the risk that
you may receive little or no return on your investment or that you may lose part or all of your investment. Before buying any Securities,
you should read the discussion of the principal risks of investing in the Fund. The principal risks of investing in the Fund are summarized
in “The Fund at a Glance — Risk Factors” beginning on page [ ] of this Prospectus and further described in “Risk
Factors” beginning on page [ ] of this Prospectus.
Neither the Securities and Exchange Commission (the “SEC”)
nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.
Prospectus dated [ ], 2024
Investment Manager. abrdn Asia Limited (the “Investment
Manager” or “abrdn Asia”) serves as the Fund’s investment manager with respect to all investments.
Common Stock. The Fund’s outstanding Common Stock
are, and the Common Stock offered by this Prospectus will be, subject to notice of issuance, listed on the New York Stock Exchange
(“NYSE”) under the symbol “IFN.” On January 30, 2024, the Fund’s NAV was $17.87 and the last reported
sale price of a share of Common Stock on the NYSE was $19.04, representing a premium to NAV of 6.55%. See “NAV, Market Price
and Discount” in the [Annual Report for the fiscal year ended December 31, 2023] (together with any updates thereto in
subsequent periodic filings) (the “Annual Report”).
Distributions. The Fund intends to make regular quarterly distributions
of all or a portion of the Fund’s net interest and other investment company taxable income to common stockholders. The Fund expects
to pay its common stockholders annually all or substantially all of its investment company taxable income. In addition, the Fund intends
to distribute, on an annual basis, all or substantially all of any net capital gains to its common stockholders.
This Prospectus sets forth concisely information about the Fund you
should know before investing. Please read this Prospectus carefully before deciding whether to invest and retain it for future reference.
The SAI has been filed with the SEC. This Prospectus incorporates by reference the entire SAI. The SAI is available
along with other Fund-related materials on the EDGAR database on the SEC’s internet site (http://www.sec.gov) or upon payment of
copying fees by electronic request to publicinfo@sec.gov.
You may also request a free copy of the SAI, annual and semi-annual
reports to stockholders, and additional information about the Fund, and may make other stockholder inquiries, by calling Investor
Relations toll-free at 1-800-522-5465, by writing to the Fund or visiting the Fund’s website (www.abrdnifn.com).
The Fund’s Securities do not represent a deposit or obligation
of, and are not guaranteed by or endorsed by, any bank or other insured depositary institution, and are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
TABLE OF CONTENTS
About this Prospectus |
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5 |
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Where you can find more information |
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6 |
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Incorporation by reference |
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6 |
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Summary of Fund expenses |
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7 |
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The Fund at a glance |
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8 |
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Financial highlights |
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15 |
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Senior securities |
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16 |
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The Fund |
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16 |
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Use of proceeds |
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16 |
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Description of Common Stock |
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16 |
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Investment objective and principal investment strategy |
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17 |
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Risk factors |
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22 |
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Management of the Fund |
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23 |
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Legal proceedings |
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24 |
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Net asset value of Common Stock |
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24 |
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Distributions |
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24 |
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Tax matters |
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24 |
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Closed-end fund structure |
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26 |
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Dividend reinvestment and optional cash purchase plan |
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27 |
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Description of capital structure |
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27 |
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Plan of distribution |
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33 |
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Custodian, dividend paying agent, transfer agent and registrar |
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34 |
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Legal opinions |
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34 |
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Independent registered public accounting firm |
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34 |
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Additional information |
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35 |
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About
this prospectus
This Prospectus is part of a Registration Statement on Form N-2
that the Fund filed with the SEC using a “shelf” registration process. Under this process, the Fund may offer, from time
to time, up to $[ ] aggregate initial offering price of Securities in one or more offerings in amounts, at prices and on terms set forth
in one or more Prospectus Supplements. The Prospectus Supplement may also add, update or change information contained in this Prospectus.
You should carefully read this Prospectus and any accompanying Prospectus Supplement, together with the additional information described
under the heading “Where You Can Find More Information.”
You should rely only on the information contained or incorporated
by reference in this Prospectus and any accompanying Prospectus Supplement. The Fund has not authorized any other person to provide you
with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The Fund is
not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume
that the information contained or the representations made herein are accurate only as of the date on the cover page of this Prospectus.
The Fund’s business, financial condition and prospects may have changed since that date. The Fund will amend this Prospectus and
any accompanying Prospectus Supplement if, during the period that this Prospectus and any accompanying Prospectus Supplement is required
to be delivered, there are any subsequent material changes.
Cautionary notice regarding forward-looking
statements
This Prospectus, any accompanying Prospectus Supplement and the SAI,
contain (or will contain) or incorporate (or will incorporate) by reference “forward-looking statements.” Forward-looking
statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,”
“continue,” “plan,” “anticipate,” and similar terms with the negative of such terms. By their nature,
all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by
the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the
portfolio of securities the Fund holds, the price at which the Fund’s Securities will trade in the public markets and other factors
discussed in the Fund’s periodic filings with the SEC.
Although the Fund believes that the expectations expressed in the
forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in the Fund’s
forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements, are subject
to change and are subject to inherent risks and uncertainties, such as those disclosed in the “Risk Factors” section of this
Prospectus. All forward-looking statements contained in this Prospectus or in the SAI are made as of the date of this Prospectus or SAI,
as the case may be. Except for ongoing obligations under the federal securities laws, the Fund does not intend and is not obligated,
to update any forward-looking statement.
WHERE YOU CAN FIND MORE INFORMATION
The Fund is subject to the informational requirements of the Securities
Exchange Act of 1934 (the “Exchange Act”) and the Investment Company Act of 1940 (“1940 Act”) and in accordance
therewith files, or will file, reports and other information with the SEC. Reports, proxy statements and other information filed by the
Fund with the SEC pursuant to the informational requirements of the Exchange Act and the 1940 Act can be inspected and copied at
the public reference facilities maintained by the SEC, 100 F Street, N.E., Washington, D.C. 20549. The SEC maintains a
web site at www.sec.gov containing reports, proxy and information statements and other information regarding registrants, including the
Fund, that file electronically with the SEC.
This Prospectus constitutes part of a Registration Statement filed
by the Fund with the SEC under the Securities Act of 1933 (“Securities Act”) and the 1940 Act. This Prospectus omits certain
of the information contained in the Registration Statement, and reference is hereby made to the Registration Statement and related exhibits
for further information with respect to the Fund and the Common Stock offered hereby. Any statements contained herein concerning the
provisions of any document are not necessarily complete, and, in each instance, reference is made to the copy of such document filed
as an exhibit to the Registration Statement or otherwise filed with the SEC. Each such statement is qualified in its entirety by such
reference. The complete Registration Statement may be obtained from the SEC upon payment of the fee prescribed by its rules and
regulations or free of charge through the SEC’s website (www.sec.gov).
The Fund will
provide without charge to each person, including any beneficial owner, to whom this Prospectus is delivered, upon written or oral request,
a copy of any and all of the information that has been incorporated by reference in this Prospectus or any accompanying Prospectus Supplement.
You may request such information by calling Investor Relations toll-free at 1-800-522-5465 or you may obtain a copy (and
other information regarding the Fund) from the SEC’s website (www.sec.gov). Free copies of the Fund’s Prospectus,
Statement of Additional Information and any incorporated information will also be available from the Fund’s website at https://www.abrdnifn.com/. Information
contained on the Fund’s website is not incorporated by reference into this Prospectus or any Prospectus Supplement and should not
be considered to be part of this Prospectus or any Prospectus Supplement.
INCORPORATION BY REFERENCE
This Prospectus is part of a
Registration Statement that the Fund has filed with the SEC. The Fund is
permitted to “incorporate by reference” the information that it files with the SEC, which means that the Fund can
disclose important information to you by referring you to those documents. The information incorporated by reference is an important
part of this Prospectus, and later information that the Fund files with the SEC will automatically
update and supersede this information.
The documents listed below,
and any reports and other documents subsequently filed with the SEC pursuant to Rule 30(b)(2) under the 1940 Act and Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act, prior to the termination of the offering, are incorporated by reference into this
Prospectus and deemed to be part of this Prospectus from the date of the filing of such reports and documents:
|
● |
the Fund’s Statement of Additional Information, dated [ ], 2024, filed with this Prospectus (“SAI”); |
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● |
[the Fund’s Annual Report on Form N-CSR for the fiscal year ended December 31, 2023, filed with the
SEC on [ ], 2024 (“Annual Report”);] |
|
● |
the Fund’s definitive proxy statement on Schedule
14A for the Fund’s 2023 annual meeting of stockholders, filed with the SEC on April 14, 2023 (“Proxy Statement”);
and |
To obtain copies of these filings,
see “Where You Can Find More Information.”
Summary
of Fund expenses
The purpose of the following table and the example below is to
help you understand the fees and expenses that holders of Common Stock (“Common Stockholders”) would bear directly or
indirectly. The expenses shown in the table under “Other expenses” are estimated for the Fund’s current fiscal
year ending December 31, 2024. The expenses shown in the table under “Total annual expenses” are based on the
Fund’s average net assets for the fiscal year ended December 31, 2023, of $488,158,000. The table reflects Fund expenses
as a percentage attributable to Common Stock.
Common Stockholder transaction expenses | |
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Sales load (as a percentage of offering price)(1) | |
None |
|
Offering expenses Borne by the Fund (excluding Preferred Stock Offering Expenses) (as
a percentage of offering price)(1) | |
None |
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Dividend reinvestment and optional cash purchase plan fees: (per share for open-market
purchases of common stock)(2) | |
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Fee for Open Market Purchases of Common Stock | |
$0.02 (per share) |
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Fee for Optional Stock Purchases | |
$5.00 (max) |
|
Sales of Stock Held in a Dividend Reinvestment Account | |
$0.12 (per share) and $25.00 (max) |
|
| |
Annual expenses (as a percentage of net assets
attributable to | |
| |
Common Stock) | |
Advisory fee(3) | |
| 1.10 | % |
Other expenses | |
| 0.39 | % |
Total annual expenses | |
| 1.49 | % |
(1) If shares of Common Stock are sold to or through underwriters,
a prospectus supplement will set forth any applicable sales load and the estimated offering expenses borne by the Fund.
(2) You will pay a brokerage commission if you direct the Plan
Agent (as defined under “Dividend reinvestment plan”) to sell your shares of Common Stock held in a dividend reinvestment
account.
(3) The Investment Manager receives a monthly fee paid at an
annual rate of (i) 1.10% for the first $500 million of the Fund’s average weekly Managed Assets; (ii) 0.90% for the next
$500 million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the next $500 million of the Fund’s average
weekly Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets in excess of $1.5 billion. Managed Assets
is defined in the investment management agreement as net assets plus the amount of any borrowings for investment purposes.
Example
The following example illustrates the expenses you would pay on a
$1,000 investment in common stock, followed by a preferred share offering, assuming a 5% annual portfolio total return.*
1 Year | | |
3 Years | | |
5 Years | | |
10 Years | |
$ | 15 | | |
$ | 47 | | |
$ | 81 | | |
$ | 178 | |
* The example does not include sales load or estimated offering
costs. The example should not be considered a representation of future expenses or rate of return and actual Fund expenses may be greater
or less than those shown. The example assumes that (i) all dividends and other distributions are reinvested at NAV and (ii) the
percentage amounts listed under “Total annual expenses” above remain the same in the years shown. For more complete descriptions
of certain of the Fund’s costs and expenses, see “Management of the Fund — Advisory Agreement.”
THE FUND AT A GLANCE
Information regarding the Fund
The Fund is a closed-end management investment company registered
under the 1940 Act. The Fund was incorporated in Maryland on December 27, 1993 and commenced operations on February 23, 1994.
The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified closed-end
management investment company. As of January 30, 2024, the Fund’s net asset value (“NAV”) per share of Common Stock
was $17.87. See “The Fund.”
NYSE listed
As of [ ], 2024, the Fund had [ ] shares of Common Stock outstanding.
The Fund’s Common Stock are traded on the NYSE under the symbol “IFN.” As of January 30, 2024, the last reported sales
price of a share of Common Stock of the Fund was $19.04, representing a premium to NAV of 6.55%.
Who may want to invest
Investors should consider their investment goals, time horizons and
risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended
to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle. The Fund may be an
appropriate investment for investors who are seeking to primarily invest in equity securities of Indian companies (as defined below).
Investment objective, strategies and policies
The investment objective of the Fund is long-term capital appreciation,
which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, convertible bonds, notes and debentures, equity interests in
trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
Portfolio Structure
Under normal market conditions, at least 80% of the Fund’s total
assets are invested in equity securities of Indian companies. “Indian companies” are companies that:
| ● | are organized under
the laws of India, |
| ● | regardless of where
organized, derive at least 50% of their revenues or profits from goods produced or sold,
investments made, or services performed, in India, or have at least 50% of their assets in
India, or |
| ● | have securities which
are traded principally on any Indian stock exchange or in the Indian over-the-counter market. |
Up to 20% of the Fund’s total assets may be invested, subject
to certain restrictions, in:
| ● | equity securities
of companies (other than companies considered “Indian companies” under the above
criteria), regardless of where organized, which the Investment Manager believes derive, or
will derive, at least 25% of their revenues from business in or with India, or have at least
25% of their assets in India, |
| ● | debt securities including
high yield/high risk and unrated debt (commonly referred to as “junk bonds”),
denominated in Indian rupees or issued or guaranteed by an Indian company, the Government
of India or an Indian governmental entity, and |
| ● | debt securities of
the type described under “Temporary investments.” |
Up to 20% of the Fund’s assets may also be utilized to purchase
and sell options on securities, financial futures, fixed income indices and other financial futures contracts, enter into interest rate
transactions and to enter into currency transactions, sell securities short and loan portfolio securities. The Fund will only invest
in such assets in order to hedge against financial risks. With respect to interest rate transactions, the Fund may enter into interest
rate swaps and may purchase or sell interest rate caps and floors. Currency transactions may include currency forward contracts, exchange
listed currency futures contracts, exchange listed and over-the-counter options on currencies and currency swaps. Although the Fund does
not presently do so or intend to do so to any significant extent, the Fund may from time to time sell securities short. The Fund will
not be obligated, however, to do any hedging and makes no representation as to the availability of these techniques at this time or at
any time in the future.
The Fund’s assets may be invested in debt securities, other
than temporary investments, when the Investment Manager believes that, based upon factors such as relative interest rate levels and foreign
exchange rates, such securities offer opportunities for long-term capital appreciation. The Fund may invest up to 100% of its assets
in temporary investments for temporary defensive purposes due to political, market or other factors affecting markets in India.
The Fund may invest in investment funds, including unregistered funds,
that invest at least 80% of their total assets in the equity securities of Indian companies in which the Fund is authorized to invest.
Subject to the provisions of and rules under the 1940 Act, the Fund may invest in investment funds as a means of investing in other
equity securities in which the Fund is authorized to invest when the Investment Manager believes that such investments may be more advantageous
to the Fund than a direct market purchase of such securities.
The Fund may invest its assets in a broad spectrum of industries.
In selecting industries and companies for investment, the Investment Manager may, among other factors, consider overall growth prospects,
financial condition, competitive position, technology, research and development, productivity, labor costs, raw material costs and sources,
profit margins, return on investment, structural changes in local economies, capital resources, the degree of government regulation or
deregulation, management and other factors. While the Fund invests a substantial portion of its assets in the securities of established
Indian companies, it also may invest in the securities of less seasoned and smaller and mid-capitalization Indian companies.
In seeking to achieve the Fund’s investment objective, the Investment
Manager invests in quality companies and are active, engaged owners. The Investment Manager evaluates every company against quality criteria
and build conviction using a team-based approach and peer review process. The quality assessment covers five key factors: (1) durability
of the business model, (2) the attractiveness of the industry, (3) the strength of financials, (4) the capability of management,
and (5) the most material environmental, social and governance (“ESG”) factors impacting a company. Examples of ESG factors considered
by the Investment Manager include, but are not limited to, carbon emissions, climate risks, labor management, employee safety and corporate
governance. The specific factors considered may vary depending on the type of company being evaluated.
The Investment Manager seeks to understand what is changing in companies,
industries and markets but isn’t being priced into the market or is being mispriced. Through fundamental research, supported by
a global research presence, the Investment Manager seeks to identify companies whose quality is not yet fully recognized by the market.
The Investment Manager may sell a security when it perceives that
a company’s business direction or growth potential has changed or the company’s valuations no longer offer attractive relative
value.
Temporary investments
The Fund may hold and/or invest its assets in cash and/or temporary
investments for cash management purposes, pending investment in accordance with the Fund’s investment objective and policies and
to meet operating expenses. In addition, the Fund may take a temporary defensive posture and invest without limitation in temporary investments.
The Fund may assume a temporary defensive posture when, due to political, market or other factors broadly affecting markets, the Investment
Manager determines that either opportunities for capital appreciation in those markets may be significantly limited or that significant
diminution in value of the securities traded in those markets may occur. To the extent that the Fund invests in temporary investments,
it may not achieve its investment objective.
Specifically, “temporary investments” are debt securities
denominated in U.S. dollars or in another freely convertible currency including:
| ● | short-term (less than
12 months to maturity) and medium-term (not greater than five years to maturity) obligations
issued or guaranteed by: |
| ● | the U.S. government or the Indian government or their agencies
or instrumentalities, or |
| ● | international organizations designated or supported by multiple
foreign governmental entities to promote economic reconstruction or development; |
| ● | finance company obligations, corporate commercial paper and other
short-term commercial obligations, in each case rated, or issued by companies with similar
securities outstanding that are rated, Prime-1 or A or better by Moody’s Investors
Service, Inc. or A-1 or A or better by Standard & Poor’s Ratings Services,
a division of the McGraw Hill Companies, Inc., or, if unrated, of comparable quality
as determined by the Investment Manager; |
| ● | obligations (including certificates of deposit, time deposits,
demand deposits and bankers’ acceptances) of banks, subject to the restriction that
the Fund may not invest more than 25% of its total assets in bank securities; and |
| ● | repurchase agreements
with respect to securities in which the Fund may invest. The banks whose obligations may
be purchased by the Fund and the banks and broker-dealers with which the Fund may enter into
repurchase agreements include any member bank of the U.S. Federal Reserve System and any
broker-dealer or any foreign bank that has been determined by the Investment Manager to be
creditworthy. |
Repurchase agreements are contracts pursuant to which the seller of
a security agrees at the time of sale to repurchase the security at an agreed upon price and date. When the Fund enters into a repurchase
agreement, the seller will be required to maintain the value of the securities subject to the repurchase agreement, marked to market
daily, at not less than their repurchase price. Repurchase agreements may involve risks in the event of insolvency or other default by
the seller, including possible delays or restrictions upon the Fund’s ability to dispose of the underlying securities.
Other Investments
Illiquid securities. The Fund may invest up to 20% of its total
assets in illiquid securities for which there may be no or only a limited trading market and for which a low trading volume of a particular
security may result in abrupt and erratic price movements. The Fund may invest in private or newly public companies. The Fund does not
currently intend to invest in privately placed securities other than those where no term, other than price and payment terms, is negotiated.
The Fund may be unable to dispose of its holdings in illiquid securities at then-current market prices and may have to dispose of such
securities over extended periods of time. In some cases, illiquid securities will be subject to contractual or legal restrictions on
transfer. In addition, issuers whose securities are not publicly traded may not be subject to the disclosure and other investor protection
requirements that may be applicable if their securities were publicly traded.
Rule 144A securities. The Fund may purchase certain restricted
securities, or Rule 144A securities, for which there is a secondary market of qualified institutional buyers, as contemplated by
Rule 144A under the 1933 Act. Rule 144A provides an exemption from the registration requirements of the 1933 Act for the resale
of certain restricted securities to qualified institutional buyers. One effect of Rule 144A is that certain restricted securities
may now have liquidity, though there is no assurance that a liquid market for Rule 144A securities will develop or be maintained.
To the extent that the number of qualified institutional buyers is reduced, a previously liquid Rule 144A security may be determined
to be illiquid, thus increasing the percentage of illiquid assets in the Fund’s portfolio. The Board of Directors (the “Board”)
has adopted policies and procedures for the purpose of determining whether securities that are eligible for resale under Rule 144A
are liquid or illiquid securities. Pursuant to those policies and procedures, the Board has delegated to the Investment Manager the determination
as to whether a particular security is liquid or illiquid.
Convertible securities. A convertible security is a bond, debenture,
note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock of the same or
a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the holder to
receive interest generally paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or
is redeemed, converted or exchanged. Convertible securities have several unique investment characteristics such as:
| ● | higher yields than
common stocks but lower yields than comparable nonconvertible securities; |
| ● | a lesser degree of
fluctuation in value than the underlying stock since they have fixed income characteristics;
and |
| ● | the potential for
capital appreciation if the market price of the underlying common stock |
A convertible security may be subject to redemption at the option
of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the
Fund is called for redemption, the Fund may be required to permit the issuer to redeem the security, convert it into the underlying common
stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to achieve its investment
objective.
In selecting convertible debt securities for the Fund, the following
factors, among others, may be considered by the Investment Manager:
| ● | the creditworthiness
of the issuers of the securities; |
| ● | the interest income
generated by the securities; |
| ● | the potential for
capital appreciation of the securities and the underlying stock; |
| ● | the conversion prices
of the securities relative to the underlying stocks; and |
| ● | the conversion prices
of the securities relative to other comparable securities. |
Warrants. The Fund may invest in warrants, which are securities
permitting but not obligating their holder to subscribe for other securities. Warrants do not carry with them the right to dividends
or voting rights with respect to the securities that they entitle their holder to purchase, and they do not represent any rights in the
assets of an issuer. As a result, an investment in warrants may be considered more speculative than certain other types of investments.
In addition, the value of a warrant does not necessarily change with the value of the underlying securities, and a warrant ceases to
have value if it is not exercised prior to its expiration date.
Equity-linked debt securities. The Fund may invest in equity-linked
debt securities. The amount of interest and/or principal payments that an issuer of equity-linked debt securities is obligated to make
is linked to the performance of a specified index of equity securities and may be significantly greater or less than payment obligations
in respect of other types of debt securities. As a result, an investment in equity- linked debt securities may be considered more speculative
than other types of debt securities. In selecting equity-linked debt securities for the Fund, the Investment Manager may consider, among
other factors, the creditworthiness of the issuers of the securities and the volatility of the index of equity securities.
Additional Investment Activities
In addition to the investment policies discussed above, the Fund may
engage in certain additional investment activities. These activities may be limited by Indian law or regulations.
Hedging
The Fund is authorized to use various hedging and investment strategies.
From time to time and as permitted by the 1940 Act, the Fund may engage in certain hedging activities described below to hedge various
market risks (such as broad or specific market movements and interest rates and currency exchange rates).
In addition, techniques and instruments may change over time as new
instruments and strategies are developed or regulatory changes occur.
Subject to the constraints described above,
the Fund may purchase and sell interest rate, currency or stock index futures contracts and enter into currency forward contracts and
currency swaps. It may purchase and sell (or write) exchange listed and over-the-counter put and call options on debt and equity securities,
currencies, futures contracts, fixed income and stock indices and other financial instruments. And it may enter into interest rate transactions,
equity swaps and related transactions and other similar transactions that may be developed to the extent the Investment Manager determines
are consistent with the Fund’s investment objective and policies and applicable regulatory requirements. The Fund’s futures
transactions will be entered into for hedging purposes. There is, however, no limit on the Fund’s assets that can be put at risk
through the use of futures contracts and options thereon, and the value of the Fund’s futures contracts and options thereon may
equal or exceed 100% of the Fund’s total assets. The Fund’s interest rate transactions may take the form of swaps, caps,
floors and collars, currency forward contracts, currency futures contracts, currency swaps and options on currency or currency futures
contracts.
The Investment Manager has claimed an exclusion
from the definition of the term “commodity pool operator” under the Commodity Exchange Act (the “CEA”) pursuant to
Rule 4.5 under the CEA with respect to the Fund. The Investment Manager is not, therefore, is not subject to registration or regulation
as a “commodity pool operator” under the CEA.
When-Issued and Delayed Delivery Securities
The Fund may purchase securities on a when-issued
or delayed delivery basis. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal
settlement date at a stated price. No income accrues to the purchaser of a security on a when-issued or delayed delivery basis prior
to delivery. Such securities are recorded as an asset and are subject to changes in value based upon changes in market prices. Purchasing
a security on a when-issued or delayed delivery basis can involve a risk that the market price at the time of delivery may be lower than
the agreed-upon purchase price, in which case there could be an unrealized loss at the time of delivery. The Fund will only make commitments
to purchase securities on a when-issued or delayed delivery basis with the intention of actually acquiring the securities, but it may
sell them before the settlement date if it is deemed advisable.
Loans of Portfolio Securities
The Fund may lend to banks and broker-dealers
portfolio securities with an aggregate market value of up to one-third of its total assets when it deems advisable. By doing so, the
Fund attempts to earn income through the receipt of interest on the loan. In the event of the bankruptcy of the other party to a securities
loan, the Fund could experience delays in recovering the securities that it lent. To the extent that, in the meantime, the value of the
securities that the Fund has lent has increased, the Fund could experience a loss.
Any such loans must be secured by collateral
(consisting of any combination of cash, U.S. Government securities irrevocable letters of credit or other high-quality debt securities)
in an amount at least equal (on a daily marked-to-market basis) to the current market value of the securities loaned. Any securities
that the Fund may receive as collateral will not become a part of its portfolio at the time of the loan and, in the event of a default
by the borrower, the Fund will, if permitted by law, dispose of such collateral except for such part thereof that is a security in which
the Fund is permitted to invest. During the time that securities are on loan, the borrower will pay the Fund any accrued income on those
securities, and the Fund may invest the cash collateral and earn additional income or receive an agreed-upon fee from a borrower that
has delivered cash equivalent collateral. Cash collateral received by the Fund will be invested in securities in which the Fund is permitted
to invest. The value of securities lent will be marked to market daily. Portfolio securities purchased with cash collateral are subject
to possible depreciation. Loans of securities by the Fund will be subject to termination at the Fund’s or the borrower’s
option. The Fund may pay reasonable negotiated fees in connection with loaned securities, so long as such fees are set forth in a written
contract and approved by the Fund’s Board.
Investment Funds
The Fund may invest in investment funds,
including unregistered funds, other than those for which the Investment Manager serve as investment adviser or sponsor and which invest
principally in securities in which the Fund is authorized to invest. Under the 1940 Act, the Fund is restricted in the amount it may
invest in such funds. To the extent that the Fund invests in other investment funds, including unregistered funds, the Fund’s stockholders
will incur certain fees and expenses, including investment advisory fees. As a stockholder in an investment fund, the Fund will bear
its ratable share of the investment fund’s expenses and will remain subject to payment of the Fund’s advisory and other fees
and expenses with respect to assets so invested.
Short Sales
Although the Fund does not presently do so
or intend to do so to any significant extent, the Fund may from time to time sell securities short. A short sale is a transaction in
which the Fund would sell securities it does not own but has borrowed. In the event the Fund elects to sell securities short, the Fund’s
intention would be to seek to take advantage of decreases in the market prices of securities in order to increase the Fund’s return
on its investments. When the Fund makes a short sale, the proceeds it receives from the sale will be held on behalf of a broker until
the Fund replaces the borrowed securities. To deliver the securities to the buyer, the Fund will need to arrange through a broker to
borrow the securities, and, in so doing, the Fund will become obligated to replace the securities borrowed at their market price at the
time of replacement, whatever that price may be. The Fund may have to pay a premium to borrow the securities and must pay any dividends
or interest payable on the securities until they are replaced.
The Fund’s obligation to replace the
securities borrowed in connection with a short sale will be secured by collateral deposited with the broker that consists of cash, U.S.
government securities or other liquid debt obligations.
Short sales by the Fund involve certain risks
and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security
because losses from short sales may be unlimited whereas losses from purchases can equal only the total amount invested.
Leverage
Although the Fund does not presently do so
or intend to do so in the upcoming year, the Fund may utilize leverage by borrowing or by issuing preferred stock or short-term debt
securities in an amount up to 25% of the Fund’s total assets. Borrowings may be secured by the Fund’s assets. Temporary borrowings
in an additional amount of up to 5% of the Fund’s total assets may be made without regard to the foregoing limitation for temporary
or emergency purposes such as clearance of portfolio transactions, share repurchases and payment of dividends.
Leverage by the Fund creates an opportunity
for increased return but, at the same time, creates special risks. For example, leverage may exaggerate changes in the net asset value
of the common stock and in the return on the Fund’s portfolio. Although the principal of any leverage will be fixed, the Fund’s
assets may change in value during the time the leverage is outstanding. Leverage will create expenses for the Fund that can exceed the
income from the assets acquired with the proceeds of the leverage. All expenses associated with leverage would be borne by common stockholders.
Furthermore, an increase in interest rates could reduce or eliminate the benefits of leverage and could reduce the value of the Fund’s
common stock.
The Fund also may enter into reverse repurchase
agreements with any member bank of the U.S. Federal Reserve System and any broker-dealer or any foreign bank that has been determined
by the Investment Manager to be creditworthy. Under a reverse repurchase agreement, the Fund would sell securities and agree to repurchase
them at a mutually agreed upon date and price. Reverse repurchase agreements involve the risk that the market value of the securities
purchased with the proceeds of the sale of securities received by the Fund may decline below the price of the securities that the Fund
is obligated to repurchase. In the event that the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes
insolvent, the buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligations
to repurchase the securities, and the Fund’s use of proceeds of the reverse repurchase agreement may effectively be restricted
pending the decision.
Asset Coverage Requirements
The 1940 Act generally prohibits the Fund
from engaging in most forms of leverage representing indebtedness other than preferred stock unless immediately after such incurrence
the Fund’s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, “total
net assets”) is at least 300% of the aggregate senior securities representing indebtedness (i.e., the use of leverage through senior
securities representing indebtedness may not exceed 33 1/3% of the Fund’s total net assets (including the proceeds from leverage)).
Additionally, under the 1940 Act, the Fund generally may not declare any dividend or other distribution upon any class of its capital
stock, or purchase any such capital stock, unless at the time of such declaration or purchase, this asset coverage test is satisfied.
With respect to asset coverage for preferred
stock, under the 1940 Act, the Fund is not permitted to issue preferred stock unless immediately after such issuance the value of the
Fund’s total net assets (as defined above) is at least 200% of the liquidation value of the outstanding preferred stock and the
newly issued preferred stock plus the aggregate amount of any senior securities of the Fund representing indebtedness (i.e., such liquidation
value plus the aggregate amount of senior securities representing indebtedness may not exceed 50% of the Fund’s total net assets).
In addition, the Fund is not permitted to declare any cash dividend or other distribution on its Common Stock unless, at the time of
such declaration, the value of the Fund’s total net assets (determined after deducting the amount of such dividend or other distribution)
satisfies the above-referenced 200% coverage requirement.
Portfolio Turnover Rate
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the Fund’s performance.
The Investment Manager
The Investment Manager provides day-to-day investment management services
to the Fund. abrdn Asia Limited serves as the Investment Manager to the Fund. abrdn Asia is located at 7 Straits View #23-04 Marina One
East Tower, Singapore 018936. abrdn Asia is an indirect wholly owned subsidiary of abrdn plc which managed or administered approximately
$632.2 billion in assets as of June 30, 2023.
Under an advisory agreement, abrdn Asia receives fees at an annual
rate of: (i) 1.10% for the first $500 million of the Fund’s average weekly Managed Assets; (ii) 0.90% for the next $500
million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the next $500 million of the Fund’s average weekly
Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets in excess of $1.5 billion. Managed Assets is defined
in the investment management agreement as net assets plus the amount of any borrowings for investment purposes.
In rendering investment management
services, the Investment Manager may use the resources of additional investment adviser subsidiaries of abrdn plc. These affiliates have
entered into a memorandum of understanding (“MOU”) pursuant to which investment professionals from each affiliate may render
portfolio management, research or trading services to abrdn clients. Each investment professional who renders portfolio management, research
or trading services under a MOU or personnel sharing arrangement must comply with the provisions of the Investment Advisers Act of 1940
(the “Advisers Act”), the 1940 Act, the Securities Act of 1933, the Exchange Act, and the Employee Retirement Income Security
Act of 1974, and the laws of states or countries in which the Investment Manager does business or has clients. No remuneration is paid
by the Fund with respect to the MOU/personnel sharing arrangements.
The Administrator
abrdn Inc., an affiliate of abrdn Asia, serves as the Fund’s
administrator and receives a fee payable monthly by the Fund at an annual fee rate of 0.08% of the value of the Fund’s average
monthly net assets.
Investor Relations
Under the terms of the Investor Relations Services Agreement, abrdn
Inc. provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by abrdn
Asia 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 abrdn Inc. so that the Fund will only pay up to an annual rate of 0.05% of the Fund’s average weekly net assets
on an annual basis. Any difference between the capped rate of 0.05% of the Fund’s average net assets per annum and the Fund’s
Portion is paid for by abrdn Inc.
Pursuant to the terms of the Investor Relations Services Agreement,
abrdn Inc. (or third parties engaged by abrdn Inc.) among other things, provides objective and timely information to stockholders based
on publicly-available information; provides information efficiently through the use of technology while offering stockholders 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 stockholders; responds to
specific stockholder questions; and reports activities and results to the Board and management detailing insight into general stockholder
sentiment.
Legal proceedings
As of the date of this Prospectus, the Fund and the Investment Manager
are not currently parties to any material legal proceedings.
Distributions
The Board has authorized a managed distribution policy (“MDP”)
of paying quarterly distributions at an annual rate, set once a year, that is a percentage of the average daily net asset value (“NAV”)
for the previous three months as of the month-end prior to declaration.
The Fund’s distributions will be paid in newly issued shares
of common stock of the Fund to all stockholders who have not otherwise elected to receive cash. Stockholders may request to be paid their
quarterly distributions in cash instead of shares of common stock by providing advance notice to the bank, brokerage or nominee who holds
their stock if the stock are in “street name” or by filling out in advance an election card received from Computershare Investor
Services if the stock are in registered form.
The Fund is covered under exemptive relief received by the Fund’s
investment manager from the SEC that allows the Fund to distribute long-term capital gains as frequently as monthly in any one taxable
year. With each distribution, the Fund will issue a notice to stockholders and an accompanying press release which will provide detailed
information regarding the amount and composition of the distribution and other information as required by the exemptive order. The Fund’s
Board may amend or terminate the MDP at any time without prior notice to stockholders; however, at this time, there are no reasonably
foreseeable circumstances that might cause the termination of the MDP. You should not draw any conclusions about the Fund’s investment
performance from the amount of distributions or from the terms of the Fund’s MDP.
The Fund is subject to U.S. corporate, tax and securities laws. Under
U.S. tax rules, the amount applicable to the Fund and character of distributable income for each fiscal period depends on the actual
exchange rates during the entire year between the U.S. Dollar and the currencies in which Fund assets are denominated and on the aggregate
gains and losses realized by the Fund during the entire year. Therefore, the exact amount of distributable income for each fiscal year
can only be determined as of the end of the Fund’s fiscal year, December 31. Under Section 19 of the 1940 Act, the Fund
is required to indicate the sources of certain distributions to stockholders. The estimated distribution composition may vary from quarter
to quarter because it may be materially impacted by future income, expenses and realized gains and losses on securities and fluctuations
in the value of the currencies in which Fund assets are denominated.
Dividend reinvestment and optional cash purchase plan
The Fund has established a dividend reinvestment and optional cash
purchase plan. A Common Stockholder will automatically have all dividends and distributions reinvested in Common Stock newly issued by
the Fund or Common Stock of the Fund purchased in the open market in accordance with the Fund’s dividend reinvestment and optional
cash purchase plan unless the Common Stockholder specifically elects to receive cash. Taxable distributions are subject to federal income
tax whether received in cash or additional common stock. See “Distributions” and “Dividend Reinvestment and Optional
Cash Purchase Plan.”
Custodian, dividend paying agent, transfer agent and registrar
State Street serves as custodian (the “Custodian”) for
the Fund. State Street also provides accounting services to the Fund. Computershare Trust Company, N.A. serves as transfer agent for
the Fund. See “Custodian, Dividend Paying Agent, Transfer Agent and Registrar.”
Closed-end fund structure
Closed-end funds differ from open-end management investment companies
(commonly referred to as mutual funds) in that closed-end funds generally list their stock for trading on a securities exchange and do
not redeem their stock at the option of the stockholder. By comparison, mutual funds issue securities redeemable at NAV at the option
of the stockholder and typically engage in a continuous offering of their stock. Mutual funds are subject to continuous asset in-flows
and out-flows that can complicate portfolio management, whereas closed-end funds generally can stay more fully invested in securities
consistent with the closed-end fund’s investment objectives and policies. In addition, in comparison to open-end funds, closed-end
funds have greater flexibility in the employment of financial leverage and in the ability to make certain types of investments, including
investments in illiquid securities.
However, stock of closed-end funds frequently trade at a discount
from their NAV. In recognition of the possibility that the Common Stock might trade at a discount to NAV and that any such discount may
not be in the interest of Common Stockholders, the Board, in consultation with the Investment Manager, from time to time may review possible
actions to reduce any such discount. The Fund’s Board approved an open market repurchase and discount management policy (the “Program”).
The Program allows the Fund to purchase, in the open market, its outstanding common stock, with the amount and timing of any repurchase
determined at the discretion of the Fund’s investment manager. Such purchases may be made opportunistically at certain discounts
to net asset value per share in the reasonable judgment of management based on historical discount levels and current market conditions.
The Fund reports repurchase activity on the Fund’s website on a monthly basis. The Board might also consider other options to reduce
the discount, such as tender offers for Common Stock at NAV. There can be no assurance, however, that the Board will decide to undertake
any of these actions or that, if undertaken, such actions would result in the Common Stock trading at a price equal to or close to NAV.
The Board might also consider the conversion of the Fund to an open-end mutual fund, which would also require a vote of the stockholders
of the Fund. Conversion of the Fund to an open-end mutual fund would require approval by both (i) a majority of the Board and (ii) a
vote of stockholders representing the lesser of (a) 67% or more of the outstanding voting securities of the Fund at a stockholder
meeting, if the holders of more than 50% of the outstanding voting securities are present in person or by proxy, or (b) more than
50% of the outstanding voting securities of the Fund.
The Fund may invest up to 20% of its total assets in illiquid securities
for which there may be no or only a limited trading market and for which a low trading volume of a particular security may result in
abrupt and erratic price movements. In order to meet redemptions upon request by stockholders, open-end funds typically cannot have more
than 15% of their net assets in illiquid securities. Thus, if the Fund were to convert to an open-end fund, it would have to adopt a
limitation on illiquid securities and may need to revise its investment objectives, strategies and policies. The composition of the Fund’s
portfolio and/or its investment policies could prohibit the Fund from complying with regulations of the SEC applicable to open-end management
investment funds absent significant changes in portfolio holdings, including with respect to certain illiquid securities, and investment
policies. The Board believes, however, that the closed-end structure is desirable, given the Fund’s investment objectives, strategies
and policies. Investors should assume, therefore, that it is highly unlikely that the Board would vote to convert the Fund to an open-end
investment company. Investors should note that the issuance of preferred stock to provide investment leverage could make a conversion
to an open-end fund more difficult because of the voting rights of preferred stockholders, the costs of redeeming preferred stock and
other factors. See “Description of Capital Structure.”
Risk factors
The information contained under the heading “Additional Information
Regarding the Fund—Risk Factors” in the Fund’s [Annual Report for the fiscal year ended December 31, 2023] is
incorporated herein by reference. Each of the risk factors contained thereunder is a principal risk of the Fund. Investors should consider
the specific risk factors and special considerations associated with investing in the Fund. An investment in the Fund is subject to investment
risk, including the possible loss of your entire investment. A Prospectus Supplement relating to an offering of the Fund’s securities
may identify additional risk associated with such offering.
Financial
highlights
The financial highlights as of and for the fiscal years ended December 31,
2023, December 31, 2022, December 31, 2021, December 31, 2020 and December 31, 2019 have been audited by [ ], independent
registered public accounting firm for the Fund. [ ]’s report on the financial statements and financial highlights, together with
the financial statements and financial highlights of the Fund, are included in the Fund’s [Annual Report for the fiscal year ended
December 31, 2023] and are incorporated by reference.
The financial highlights for the fiscal years ended December 31,
2014 through December 31, 2023 are included below.
[ ]
Senior
Securities
The Fund does not currently have any senior securities outstanding.
THE FUND
The Fund is a closed-end management investment company registered
under the 1940 Act as a non-diversified closed-end management investment company. The Fund was incorporated in Maryland on December 27,
1993, and commenced operations on February 23, 1994.
The Fund’s investment objective is long-term capital appreciation,
which it seeks to achieve by investing primarily in the equity securities of Indian companies.
abrdn Asia Limited (“abrdn Asia” or the “Investment
Manager”), serves as the Fund’s investment manager with respect to all investments.
USE OF PROCEEDS
The Fund registered $[ ] aggregate initial offering price of Securities
pursuant to the Registration Statement of which this Prospectus is a part. Unless otherwise specified in a Prospectus Supplement, the
Fund intends to invest the net proceeds of an offering of Securities in accordance with its investment objectives and policies as stated
in this Prospectus. It is currently anticipated that the Fund will be able to invest substantially all of the net proceeds of an offering
of Securities in accordance with its investment objectives and policies within three months after the completion of such offering. Pending
the full investment of the proceeds of an offering, it is anticipated that the net proceeds will be invested in fixed income securities
and other permitted investments. See “Objectives and Principal Investment Strategy”. A delay in the anticipated use of proceeds
could lower returns and reduce the Fund’s distribution to Common Stockholders.
DESCRIPTION OF COMMON
STOCK
The Fund’s Common Stock are publicly held and are listed and
traded on the NYSE. The following table sets forth for the fiscal quarters indicated the highest and lowest daily prices during the applicable
quarter at the close of market on the NYSE per share of Common Stock along with (i) the highest and lowest closing NAV and (ii) the
highest and lowest premium or discount from NAV represented by such prices at the close of the market on the NYSE.
| |
NYSE Market Price(1) | | |
NAV at NYSE Market
Price(1) | | |
Market Premium/(Discount) to
NAV on Date of NYSE Market Price(1) | |
Quarter Ended (2) | |
High | | |
Low | | |
High | | |
Low | | |
High | | |
Low | |
December 31, 2023 | |
$ | 18.40 | | |
$ | 15.56 | | |
$ | 17.87 | | |
$ | 15.91 | | |
| 5.70 | % | |
| -2.20 | % |
September 30, 2023 | |
$ | 17.47 | | |
$ | 16.30 | | |
$ | 17.03 | | |
$ | 16.23 | | |
| 7.05 | % | |
| -2.33 | % |
June 30, 2023 | |
$ | 16.60 | | |
$ | 15.12 | | |
$ | 16.72 | | |
$ | 15.56 | | |
| -0.06 | % | |
| -4.04 | % |
March 31, 2023 | |
$ | 16.26 | | |
$ | 14.48 | | |
$ | 16.70 | | |
$ | 15.15 | | |
| 0.32 | % | |
| -6.96 | % |
December 31, 2022 | |
$ | 17.68 | | |
$ | 14.81 | | |
$ | 18.85 | | |
$ | 16.11 | | |
| -2.67 | % | |
| -11.98 | % |
September 30, 2022 | |
$ | 18.40 | | |
$ | 16.00 | | |
$ | 19.83 | | |
$ | 17.61 | | |
| -6.39 | % | |
| -11.38 | % |
June 30, 2022 | |
$ | 20.13 | | |
$ | 15.77 | | |
$ | 22.04 | | |
$ | 17.39 | | |
| -6.54 | % | |
| -12.73 | % |
March 31, 2022 | |
$ | 22.25 | | |
$ | 18.35 | | |
$ | 24.42 | | |
$ | 19.75 | | |
| -7.04 | % | |
| -12.87 | % |
December 31, 2021 | |
$ | 23.29 | | |
$ | 20.71 | | |
$ | 25.95 | | |
$ | 22.84 | | |
| -8.72 | % | |
| -11.88 | % |
September 30, 2021 | |
$ | 23.75 | | |
$ | 21.36 | | |
$ | 26.68 | | |
$ | 23.62 | | |
| -7.10 | % | |
| -11.89 | % |
June 30, 2021 | |
$ | 22.57 | | |
$ | 19.97 | | |
$ | 24.46 | | |
$ | 22.05 | | |
| -5.98 | % | |
| -10.67 | % |
March 31, 2021 | |
$ | 22.15 | | |
$ | 19.52 | | |
$ | 24.39 | | |
$ | 22.32 | | |
| -7.41 | % | |
| -14.64 | % |
December 31, 2020 | |
$ | 20.32 | | |
$ | 16.51 | | |
$ | 22.99 | | |
$ | 19.51 | | |
| -10.54 | % | |
| -16.83 | % |
(1) Source:
Bloomberg L.P.
(2) Data
presented are with respect to a short period of time and are not indicative of future performance.
On January 30, 2024, the Fund’s NAV was $17.87 and the
last reported sale price of a share of Common Stock on the NYSE was $19.04, representing a premium to NAV of 6.55%.
INVESTMENT
OBJECTIVE AND PRINCIPAL INVESTMENT STRATEGY
Investment objective and principal investment strategy
The investment objective of the Fund is long-term capital appreciation,
which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, convertible bonds, notes and debentures, equity interests in
trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
Portfolio Structure
Under normal market conditions, at least 80% of the Fund’s total
assets are invested in equity securities of Indian companies. “Indian companies” are companies that:
| ● | are organized under
the laws of India, |
| ● | regardless of where
organized, derive at least 50% of their revenues or profits from goods produced or sold,
investments made, or services performed, in India, or have at least 50% of their assets in
India, or |
| ● | have securities which
are traded principally on any Indian stock exchange or in the Indian over-the-counter market. |
Up to 20% of the Fund’s total assets may be invested, subject
to certain restrictions, in:
| ● | equity securities
of companies (other than companies considered “Indian companies” under the above
criteria), regardless of where organized, which the Investment Manager believes derive, or
will derive, at least 25% of their revenues from business in or with India, or have at least
25% of their assets in India, |
| ● | debt securities including
high yield/high risk and unrated debt (commonly referred to as “junk bonds”),
denominated in Indian rupees or issued or guaranteed by an Indian company, the Government
of India or an Indian governmental entity, and |
| ● | debt securities of
the type described under “– Temporary Investments.” |
Up to 20% of the Fund’s assets may also be utilized to purchase
and sell options on securities, financial futures, fixed income indices and other financial futures contracts, enter into interest rate
transactions and to enter into currency transactions, sell securities short and loan portfolio securities. The Fund will only invest
in such assets in order to hedge against financial risks. With respect to interest rate transactions, the Fund may enter into interest
rate swaps and may purchase or sell interest rate caps and floors. Currency transactions may include currency forward contracts, exchange
listed currency futures contracts, exchange listed and over-the-counter options on currencies and currency swaps. Although the Fund does
not presently do so or intend to do so to any significant extent, the Fund may from time to time sell securities short. The Fund will
not be obligated, however, to do any hedging and makes no representation as to the availability of these techniques at this time or at
any time in the future.
The Fund’s assets may be invested in debt securities, other
than temporary investments, when the Investment Manager believes that, based upon factors such as relative interest rate levels and foreign
exchange rates, such securities offer opportunities for long-term capital appreciation. The Fund may invest up to 100% of its assets
in temporary investments for temporary defensive purposes due to political, market or other factors affecting markets in India.
The Fund may invest in investment funds, including unregistered funds,
that invest at least 80% of their total assets in the equity securities of Indian companies in which the Fund is authorized to invest.
Subject to the provisions of and rules under the 1940 Act, the Fund may invest in investment funds as a means of investing in other
equity securities in which the Fund is authorized to invest when the Investment Manager believes that such investments may be more advantageous
to the Fund than a direct market purchase of such securities.
The Fund may invest its assets in a broad spectrum of industries.
In selecting industries and companies for investment, the Investment Manager may, among other factors, consider overall growth prospects,
financial condition, competitive position, technology, research and development, productivity, labor costs, raw material costs and sources,
profit margins, return on investment, structural changes in local economies, capital resources, the degree of government regulation or
deregulation, management and other factors.
While the Fund invests a substantial portion of its assets in the
securities of established Indian companies, it also may invest in the securities of less seasoned and smaller and mid-capitalization
Indian companies.
In seeking to achieve the Fund’s investment objective, the Investment
Manager invests in quality companies and are active, engaged owners. The Investment Manager evaluates every company against quality criteria
and build conviction using a team-based approach and peer review process. The quality assessment covers five key factors: (1) durability
of the business model, (2) the attractiveness of the industry, (3) the strength of financials, (4) the capability of management,
and (5) the most material environmental, social and governance (“ESG”) factors impacting a company. Examples of ESG factors considered
by the Investment Manager include, but are not limited to, carbon emissions, climate risks, labor management, employee safety and corporate
governance. The specific factors considered may vary depending on the type of company being evaluated.
The Investment Manager seeks to understand what is changing in companies,
industries and markets but isn’t being priced into the market or is being mispriced. Through fundamental research, supported by
a global research presence, the Investment Manager seeks to identify companies whose quality is not yet fully recognized by the market.
The Investment Manager may sell a security when it perceives that
a company’s business direction or growth potential has changed or the company’s valuations no longer offer attractive relative
value.
Temporary investments
The Fund may hold and/or invest its assets in cash and/or temporary
investments for cash management purposes, pending investment in accordance with the Fund’s investment objective and policies and
to meet operating expenses. In addition, the Fund may take a temporary defensive posture and invest without limitation in temporary investments.
The Fund may assume a temporary defensive posture when, due to political, market or other factors broadly affecting markets, the Investment
Manager determines that either opportunities for capital appreciation in those markets may be significantly limited or that significant
diminution in value of the securities traded in those markets may occur. To the extent that the Fund invests in temporary investments,
it may not achieve its investment objective.
Specifically, “temporary investments” are debt securities
denominated in U.S. dollars or in another freely convertible currency including:
| ● | short-term (less than
12 months to maturity) and medium-term (not greater than five years to maturity) obligations
issued or guaranteed by: |
| ● | the U.S. government
or the Indian government or their agencies or instrumentalities, or |
| ● | international organizations
designated or supported by multiple foreign governmental entities to promote economic reconstruction
or development; |
| ● | finance company obligations,
corporate commercial paper and other short-term commercial obligations, in each case rated,
or issued by companies with similar securities outstanding that are rated, Prime-1 or A or
better by Moody’s Investors Service, Inc. or A-1 or A or better by Standard &
Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., or, if
unrated, of comparable quality as determined by the Investment Manager; |
| ● | obligations (including
certificates of deposit, time deposits, demand deposits and bankers’ acceptances) of
banks, subject to the restriction that the Fund may not invest more than 25% of its total
assets in bank securities; and |
| ● | repurchase agreements
with respect to securities in which the Fund may invest. The banks whose obligations may
be purchased by the Fund and the banks and broker-dealers with which the Fund may enter into
repurchase agreements include any member bank of the U.S. Federal Reserve System and any
broker-dealer or any foreign bank that has been determined by the Investment Manager to be
creditworthy. |
Repurchase agreements are contracts pursuant to which the seller of
a security agrees at the time of sale to repurchase the security at an agreed upon price and date. When the Fund enters into a repurchase
agreement, the seller will be required to maintain the value of the securities subject to the repurchase agreement, marked to market
daily, at not less than their repurchase price. Repurchase agreements may involve risks in the event of insolvency or other default by
the seller, including possible delays or restrictions upon the Fund’s ability to dispose of the underlying securities.
Other Investments
Illiquid securities. The Fund may invest up to 20% of its total
assets in illiquid securities for which there may be no or only a limited trading market and for which a low trading volume of a particular
security may result in abrupt and erratic price movements. The Fund may invest in private or newly public companies. The Fund does not
currently intend to invest in privately placed securities other than those where no term, other than price and payment terms, is negotiated.
The Fund may be unable to dispose of its holdings in illiquid securities at then-current market prices and may have to dispose of such
securities over extended periods of time. In some cases, illiquid securities will be subject to contractual or legal restrictions on
transfer. In addition, issuers whose securities are not publicly traded may not be subject to the disclosure and other investor protection
requirements that may be applicable if their securities were publicly traded.
Rule 144A securities. The Fund may purchase certain restricted
securities, or Rule 144A securities, for which there is a secondary market of qualified institutional buyers, as contemplated by
Rule 144A under the 1933 Act. Rule 144A provides an exemption from the registration requirements of the 1933 Act for the resale
of certain restricted securities to qualified institutional buyers. One effect of Rule 144A is that certain restricted securities
may now have liquidity, though there is no assurance that a liquid market for Rule 144A securities will develop or be maintained.
To the extent that the number of qualified institutional buyers is reduced, a previously liquid Rule 144A security may be determined
to be illiquid, thus increasing the percentage of illiquid assets in the Fund’s portfolio. The Board has adopted policies and procedures
for the purpose of determining whether securities that are eligible for resale under Rule 144A are liquid or illiquid securities.
Pursuant to those policies and procedures, the Board has delegated to the Investment Manager the determination as to whether a particular
security is liquid or illiquid.
Convertible securities. A convertible security is a bond, debenture,
note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock of the same or
a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the holder to
receive interest generally paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or
is redeemed, converted or exchanged. Convertible securities have several unique investment characteristics such as:
| ● | higher yields than
common stocks but lower yields than comparable nonconvertible securities; |
| ● | a lesser degree of
fluctuation in value than the underlying stock since they have fixed income characteristics;
and |
| ● | the potential for
capital appreciation if the market price of the underlying common stock |
A convertible security may be subject to redemption at the option
of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the
Fund is called for redemption, the Fund may be required to permit the issuer to redeem the security, convert it into the underlying common
stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to achieve its investment
objective.
In selecting convertible debt securities for the Fund, the following
factors, among others, may be considered by the Investment Manager:
| ● | the creditworthiness
of the issuers of the securities; |
| ● | the interest income
generated by the securities; |
| ● | the potential for
capital appreciation of the securities and the underlying stock; |
| ● | the conversion prices
of the securities relative to the underlying stocks; and |
| ● | the conversion prices
of the securities relative to other comparable securities. |
Warrants. The Fund may invest in warrants, which are securities
permitting but not obligating their holder to subscribe for other securities. Warrants do not carry with them the right to dividends
or voting rights with respect to the securities that they entitle their holder to purchase, and they do not represent any rights in the
assets of an issuer. As a result, an investment in warrants may be considered more speculative than certain other types of investments.
In addition, the value of a warrant does not necessarily change with the value of the underlying securities, and a warrant ceases to
have value if it is not exercised prior to its expiration date.
Equity-linked debt securities. The Fund may invest in equity-linked
debt securities. The amount of interest and/or principal payments that an issuer of equity-linked debt securities is obligated to make
is linked to the performance of a specified index of equity securities and may be significantly greater or less than payment obligations
in respect of other types of debt securities. As a result, an investment in equity- linked debt securities may be considered more speculative
than other types of debt securities. In selecting equity-linked debt securities for the Fund, the Investment Manager may consider, among
other factors, the creditworthiness of the issuers of the securities and the volatility of the index of equity securities.
Additional Investment Activities
In addition to the investment policies discussed above, the Fund may
engage in certain additional investment activities. These activities may be limited by Indian law or regulations.
Hedging
The Fund is authorized to use various hedging and investment strategies.
From time to time and as permitted by the 1940 Act, the Fund may engage in certain hedging activities described below to hedge various
market risks (such as broad or specific market movements and interest rates and currency exchange rates).
In addition, techniques and instruments may change over time as new
instruments and strategies are developed or regulatory changes occur.
Subject to the constraints described above,
the Fund may purchase and sell interest rate, currency or stock index futures contracts and enter into currency forward contracts and
currency swaps. It may purchase and sell (or write) exchange listed and over-the-counter put and call options on debt and equity securities,
currencies, futures contracts, fixed income and stock indices and other financial instruments. And it may enter into interest rate transactions,
equity swaps and related transactions and other similar transactions that may be developed to the extent the Investment Manager determines
are consistent with the Fund’s investment objective and policies and applicable regulatory requirements. The Fund’s futures
transactions will be entered into for hedging purposes. There is, however, no limit on the Fund’s assets that can be put at risk
through the use of futures contracts and options thereon, and the value of the Fund’s futures contracts and options thereon may
equal or exceed 100% of the Fund’s total assets. The Fund’s interest rate transactions may take the form of swaps, caps,
floors and collars, currency forward contracts, currency futures contracts, currency swaps and options on currency or currency futures
contracts.
The Investment Manager has claimed an exclusion
from the definition of the term “commodity pool operator” under the Commodity Exchange Act (the “CEA”) pursuant to
Rule 4.5 under the CEA with respect to the Fund. The Investment Manager is not, therefore, is not subject to registration or regulation
as a “commodity pool operator” under the CEA.
When-Issued and Delayed Delivery Securities
The Fund may purchase securities on a when-issued
or delayed delivery basis. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal
settlement date at a stated price. No income accrues to the purchaser of a security on a when-issued or delayed delivery basis prior
to delivery. Such securities are recorded as an asset and are subject to changes in value based upon changes in market prices. Purchasing
a security on a when-issued or delayed delivery basis can involve a risk that the market price at the time of delivery may be lower than
the agreed-upon purchase price, in which case there could be an unrealized loss at the time of delivery. The Fund will only make commitments
to purchase securities on a when-issued or delayed delivery basis with the intention of actually acquiring the securities, but it may
sell them before the settlement date if it is deemed advisable.
Loans of Portfolio Securities
The Fund may lend to banks and broker-dealers
portfolio securities with an aggregate market value of up to one-third of its total assets when it deems advisable. By doing so, the
Fund attempts to earn income through the receipt of interest on the loan. In the event of the bankruptcy of the other party to a securities
loan, the Fund could experience delays in recovering the securities that it lent. To the extent that, in the meantime, the value of the
securities that the Fund has lent has increased, the Fund could experience a loss.
Any such loans must be secured by collateral
(consisting of any combination of cash, U.S. Government securities irrevocable letters of credit or other high-quality debt securities)
in an amount at least equal (on a daily marked-to-market basis) to the current market value of the securities loaned. Any securities
that the Fund may receive as collateral will not become a part of its portfolio at the time of the loan and, in the event of a default
by the borrower, the Fund will, if permitted by law, dispose of such collateral except for such part thereof that is a security in which
the Fund is permitted to invest. During the time that securities are on loan, the borrower will pay the Fund any accrued income on those
securities, and the Fund may invest the cash collateral and earn additional income or receive an agreed-upon fee from a borrower that
has delivered cash equivalent collateral. Cash collateral received by the Fund will be invested in securities in which the Fund is permitted
to invest. The value of securities lent will be marked to market daily. Portfolio securities purchased with cash collateral are subject
to possible depreciation. Loans of securities by the Fund will be subject to termination at the Fund’s or the borrower’s
option. The Fund may pay reasonable negotiated fees in connection with loaned securities, so long as such fees are set forth in a written
contract and approved by the Fund’s Board.
Investment Funds
The Fund may invest in investment funds,
including unregistered funds, other than those for which the Investment Manager serve as investment adviser or sponsor and which invest
principally in securities in which the Fund is authorized to invest. Under the 1940 Act, the Fund is restricted in the amount it may
invest in such funds. To the extent that the Fund invests in other investment funds, including unregistered funds, the Fund’s stockholders
will incur certain fees and expenses, including investment advisory fees. As a stockholder in an investment fund, the Fund will bear
its ratable share of the investment fund’s expenses and will remain subject to payment of the Fund’s advisory and other fees
and expenses with respect to assets so invested.
Short Sales
Although the Fund does not presently do so
or intend to do so to any significant extent, the Fund may from time to time sell securities short. A short sale is a transaction in
which the Fund would sell securities it does not own but has borrowed. In the event the Fund elects to sell securities short, the Fund’s
intention would be to seek to take advantage of decreases in the market prices of securities in order to increase the Fund’s return
on its investments. When the Fund makes a short sale, the proceeds it receives from the sale will be held on behalf of a broker until
the Fund replaces the borrowed securities. To deliver the securities to the buyer, the Fund will need to arrange through a broker to
borrow the securities, and, in so doing, the Fund will become obligated to replace the securities borrowed at their market price at the
time of replacement, whatever that price may be. The Fund may have to pay a premium to borrow the securities and must pay any dividends
or interest payable on the securities until they are replaced.
The Fund’s obligation to replace the
securities borrowed in connection with a short sale will be secured by collateral deposited with the broker that consists of cash, U.S.
government securities or other liquid debt obligations.
Short sales by the Fund involve certain risks
and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security
because losses from short sales may be unlimited whereas losses from purchases can equal only the total amount invested.
Leverage
Although the Fund does not presently do so
or intend to do so in the upcoming year, the Fund may utilize leverage by borrowing or by issuing preferred stock or short-term debt
securities in an amount up to 25% of the Fund’s total assets. Borrowings may be secured by the Fund’s assets. Temporary borrowings
in an additional amount of up to 5% of the Fund’s total assets may be made without regard to the foregoing limitation for temporary
or emergency purposes such as clearance of portfolio transactions, share repurchases and payment of dividends.
Leverage by the Fund creates an opportunity
for increased return but, at the same time, creates special risks. For example, leverage may exaggerate changes in the net asset value
of the common stock and in the return on the Fund’s portfolio. Although the principal of any leverage will be fixed, the Fund’s
assets may change in value during the time the leverage is outstanding. Leverage will create expenses for the Fund that can exceed the
income from the assets acquired with the proceeds of the leverage. All expenses associated with leverage would be borne by common stockholders.
Furthermore, an increase in interest rates could reduce or eliminate the benefits of leverage and could reduce the value of the Fund’s
common stock.
The Fund also may enter into reverse repurchase
agreements with any member bank of the U.S. Federal Reserve System and any broker-dealer or any foreign bank that has been determined
by the Investment Manager to be creditworthy. Under a reverse repurchase agreement, the Fund would sell securities and agree to repurchase
them at a mutually agreed upon date and price. Reverse repurchase agreements involve the risk that the market value of the securities
purchased with the proceeds of the sale of securities received by the Fund may decline below the price of the securities that the Fund
is obligated to repurchase. In the event that the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes
insolvent, the buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligations
to repurchase the securities, and the Fund’s use of proceeds of the reverse repurchase agreement may effectively be restricted
pending the decision.
Asset Coverage Requirements
The 1940 Act generally prohibits the Fund
from engaging in most forms of leverage representing indebtedness other than preferred stock unless immediately after such incurrence
the Fund’s total assets less all liabilities and indebtedness not represented by senior securities (for these purposes, “total
net assets”) is at least 300% of the aggregate senior securities representing indebtedness (i.e., the use of leverage through senior
securities representing indebtedness may not exceed 33 1/3% of the Fund’s total net assets (including the proceeds from leverage)).
Additionally, under the 1940 Act, the Fund generally may not declare any dividend or other distribution upon any class of its capital
stock, or purchase any such capital stock, unless at the time of such declaration or purchase, this asset coverage test is satisfied.
With respect to asset coverage for preferred
stock, under the 1940 Act, the Fund is not permitted to issue preferred stock unless immediately after such issuance the value of the
Fund’s total net assets (as defined above) is at least 200% of the liquidation value of the outstanding preferred stock and the
newly issued preferred stock plus the aggregate amount of any senior securities of the Fund representing indebtedness (i.e., such liquidation
value plus the aggregate amount of senior securities representing indebtedness may not exceed 50% of the Fund’s total net assets).
In addition, the Fund is not permitted to declare any cash dividend or other distribution on its Common Stock unless, at the time of
such declaration, the value of the Fund’s total net assets (determined after deducting the amount of such dividend or other distribution)
satisfies the above-referenced 200% coverage requirement.
Risk
factors
The information contained under the heading “Additional Information
Regarding the Fund—Risk Factors” in the Fund’s [Annual Report] is incorporated herein by reference. Each of the risk
factors contained thereunder is a principal risk of the Fund. Investors should consider the specific risk factors and special considerations
associated with investing in the Fund. An investment in the Fund is subject to investment risk, including the possible loss of your entire
investment. A Prospectus Supplement relating to an offering of the Fund’s securities may identify additional risk associated with
such offering.
Management
of the Fund
BOARD OF DIRECTORS
The management of the Fund, including general supervision of the duties
performed by the Investment Manager, is the responsibility of the Board under the laws of the State of Maryland and the 1940 Act.
THE Investment Manager
The Investment Manager provides day-to-day investment management services
to the Fund. abrdn Asia Limited serves as the Investment Manager to the Fund. abrdn Asia is located at 7 Straits View #23-04 Marina One
East Tower, Singapore 018936. abrdn Asia is an indirect wholly owned subsidiary of abrdn plc which managed or administered approximately
$632.2 billion in assets as of June 30, 2023.
In rendering investment management services, the Investment Manager
may use the resources of additional investment adviser subsidiaries of abrdn plc. These affiliates have entered into a memorandum of
understanding (“MOU”) pursuant to which investment professionals from each affiliate may render portfolio management, research
or trading services to abrdn clients. Each investment professional who renders portfolio management, research or trading services under
a MOU or personnel sharing arrangement must comply with the provisions of the Advisers Act, the 1940 Act, the Securities Act of 1933,
the Exchange Act, and the Employee Retirement Income Security Act of 1974, and the laws of states or countries in which the Investment
Manager does business or has clients. No remuneration is paid by the Fund with respect to the MOU/personnel sharing arrangements.
ADVISORY AGREEMENT
Under an advisory agreement, the Investment Manager receives an annual
fee, at an annual rate of: (i) 1.10% for the first $500 million of the Fund’s average weekly Managed Assets; (ii) 0.90%
for the next $500 million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the next $500 million of the Fund’s
average weekly Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets in excess of $1.5 billion. Managed
Assets is defined in the investment management agreement as net assets plus the amount of any borrowings for investment purposes.
The Fund pays all of its expenses including, among others, legal fees
and expenses of counsel to the Fund and the Fund’s independent directors; insurance (including directors’ and officers’
errors and omissions insurance); auditing and accounting expenses; taxes and governmental fees; listing fees; dues and expenses incurred
in connection with membership in investment company organizations; fees and expenses of the Fund’s custodians, administrators,
transfer agents, registrars and other service providers; expenses for portfolio pricing services by a pricing agent, if any; other expenses
in connection with the issuance, offering and underwriting of shares or debt instruments issued by the Fund or with the securing of any
credit facility or other loans for the Fund; expenses relating to investor and public relations; expenses of registering or qualifying
securities of the Fund for public sale; brokerage commissions and other costs of acquiring or disposing of any portfolio holding of the
Fund; expenses of preparation and distribution of reports, notices and dividends to stockholders; expenses of the dividend reinvestment
and optional cash purchase plan (except for brokerage expenses paid by participants in such plan); compensation and expenses of directors;
costs of stationery; any litigation expenses; and costs of stockholders’ and other meetings.
THE ADMINISTRATOR
abrdn Inc., an affiliate of abrdn Asia, serves as the Fund’s
administrator and receives a fee payable monthly by the Fund at an annual fee rate of 0.08% of the value of the Fund’s average monthly
net assets.
Investor Relations
Under the terms of the Investor Relations Services Agreement, abrdn
Inc. provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by abrdn
Asia 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 abrdn Inc. so that the Fund will only pay up to an annual rate of 0.05% of the Fund’s average net assets per
annum. Any difference between the capped rate of 0.05% of the Fund’s average net assets per annum and the Fund’s Portion
is paid for by abrdn Inc.
Pursuant to the terms of the Investor Relations Services Agreement,
abrdn Inc. (or third parties engaged by abrdn Inc.) among other things, provides objective and timely information to stockholders based
on publicly-available information; provides information efficiently through the use of technology while offering stockholders 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 stockholders; responds to
specific stockholder questions; and reports activities and results to the Board and management detailing insight into general stockholder
sentiment.
LEGAL PROCEEDINGS
As of the date of this Prospectus, the Fund and the Investment
Manager are not currently parties to any material legal proceedings.
NET ASSET VALUE OF COMMON
STOCK
The information contained under the heading “Notes to Financial
Statements—Summary of Significant Accounting Policies—Security Valuation” in the Fund’s [Annual Report] is incorporated
herein by reference.
DISTRIBUTIONS
The information contained under the heading “Notes to Financial
Statements—Summary of Significant Accounting Policies—Distributions” in the Fund’s [Annual Report] is incorporated
herein by reference.
TAX MATTERS
The following is (i) a description of the material U.S. federal
income tax consequences of owning and disposing of Common Stock and (ii) a description of some of the important U.S. federal income
tax considerations affecting the Fund. The discussion below provides general tax information related to an investment in Common Stock,
but this discussion does not purport to be a complete description of the U.S. federal income tax consequences of an investment in such
securities. It is based on the Internal Revenue Code of 1986, as amended (the“Code”) and United States Treasury regulations and administrative
pronouncements, all as of the date hereof, any of which is subject to change or differing interpretation, possibly with retroactive effect.
In addition, it does not describe all of the tax consequences that may be relevant in light of a Common Stockholder’s particular
circumstances, including alternative minimum tax consequences and tax consequences applicable to Common Stockholders subject to special
tax rules, such as certain financial institutions; dealers or traders in securities who use a mark-to-market method of tax accounting;
persons holding Common Stock as part of a hedging transaction, wash sale, conversion transaction or integrated transaction or persons
entering into a constructive sale with respect to the Common Stock; entities classified as partnerships or other pass-through entities
for U.S. federal income tax purposes; real estate investment trusts; insurance companies; U.S. holders (as defined below) whose functional
currency is not the U.S. dollar; or tax-exempt entities, including “individual retirement accounts” or “Roth IRAs.”
Unless otherwise noted, the following discussion applies only to a Common Stockholder that holds Common Stock as a capital asset and
is a U.S. holder. A “U.S. holder” is a holder who, for U.S. federal income tax purposes, is a beneficial owner of Common
Stock and is (i) an individual who is a citizen or resident of the United States; (ii) a corporation, or other entity taxable
as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; (iii) an
estate the income of which is subject to U.S. federal income taxation regardless of its source; or (iv) a trust if it (x) is
subject to the primary supervision of a court within the United States and one or more U.S. persons have the authority to control all
substantial decisions of the trust or (y) has a valid election in effect under applicable United States Treasury regulations to
be treated as a U.S. person. Tax laws are complex and often change, and Common Stockholders should consult their tax advisors about the
U.S. federal, state, local or non-U.S. tax consequences of an investment in the Fund. For more information, please see the section of
the SAI entitled “Tax Matters.”
THE FUND
The Fund has elected to be treated as, and intends to continue to
qualify in each taxable year as, a regulated investment company (a “RIC”) under Subchapter M of the Code. Assuming the Fund
so qualifies and satisfies certain distribution requirements, the Fund generally will not be subject to U.S. federal income tax on income
distributed (including amounts that are reinvested) in a timely manner to its stockholders in the form of dividends or capital gain distributions.
If the Fund retains any net capital gains for reinvestment, it may elect to treat such capital gains as having been distributed to its
stockholders. If the Fund makes such an election, each Common Stockholder will be required to report its share of such undistributed
net capital gain as long-term capital gain and will be entitled to claim its share of the U.S. federal income taxes paid by the Fund
on such undistributed net capital gain as a credit against its own U.S. federal income tax liability, if any, and to claim a refund on
a properly filed U.S. federal income tax return to the extent that the credit exceeds such liability. In addition, each Common Stockholder
will be entitled to increase the adjusted tax basis of its Common Stock by the difference between its share of such undistributed net
capital gain and the related credit. There can be no assurance that the Fund will make this election if it retains all or a portion of
its net capital gain for a taxable year.
To qualify as a RIC for any taxable year, the Fund must, among other
things, satisfy both an income test and an asset test for such taxable year. Specifically, (i) at least 90% of the Fund’s
gross income for such taxable year must consist of dividends; interest; payments with respect to certain securities loans; gains from
the sale or other disposition of stock, securities or foreign currencies; other income (including, but not limited to, gains from options,
futures or forward contracts) derived with respect to its business of investing in such stock, securities or currencies; and net income
derived from interests in “qualified publicly traded partnerships” (such income, “Qualifying RIC Income”) and
(ii) the Fund’s holdings must be diversified so that, at the end of each quarter of such taxable year, (a) at least 50%
of the value of the Fund’s total assets is represented by cash and cash items, securities of other RICs, U.S. government securities
and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the value
of the Fund’s total assets and not greater than 10% of the outstanding voting securities of such issuer and (b) not more than
25% of the value of the Fund’s total assets is invested (x) in securities (other than U.S. government securities or securities
of other RICs) of any one issuer or of two or more issuers that the Fund controls and that are engaged in the same, similar or related
trades or businesses or (y) in the securities of one or more “qualified publicly traded partnerships.” The Fund’s
share of income derived from a partnership other than a “qualified publicly traded partnership” will be treated as Qualifying
RIC Income only to the extent that such income would have constituted Qualifying RIC Income if derived directly by the Fund. A “qualified
publicly traded partnership” is generally defined as an entity that is treated as a partnership for U.S. federal income tax purposes
if (i) interests in such entity are traded on an established securities market or are readily tradable on a secondary market or
the substantial equivalent thereof and (ii) less than 90% of its gross income for the relevant taxable year consists of Qualifying
RIC Income. The Code provides that the Treasury Department may by regulation exclude from Qualifying RIC Income foreign currency gains
that are not directly related to the RIC’s principal business of investing in stock or securities (or options and futures with
respect to stock or securities). The Fund anticipates that, in general, its foreign currency gains will be directly related to its principal
business of investing in stock and securities.
OWNING AND DISPOSING OF COMMON STOCK
Distributions of the Fund’s ordinary income and net short-term
capital gains will generally be taxable to the Common Stockholders as ordinary income to the extent such distributions are paid out of
the Fund’s current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. Distributions or deemed
distributions, if any, of net capital gains will be taxable as long-term capital gains, regardless of the length of time the Common Stockholder
has owned Common Stock. Distributions made to a non-corporate Common Stockholder out of “qualified dividend income,” if any,
received by the Fund will be subject to tax at reduced maximum rates, provided that the Common Stockholder meets certain holding period
and other requirements with respect to its Common Stock. Given the Fund’s investment strategy, it is not expected that a large
portion of the distributions made by the Fund will be eligible for the dividends-received deduction in the case of corporate Common Stockholders.
A distribution of an amount in excess of the Fund’s current and accumulated earnings and profits will be treated by a Common Stockholder
as a return of capital that will be applied against and reduce the Common Stockholder’s basis in its Common Stock. To the extent
that the amount of any such distribution exceeds the Common Stockholder’s basis in its Common Stock, the excess will be treated
as gain from a sale or exchange of the Common Stock. Distributions will be treated in the manner described above regardless of whether
such distributions are paid in cash or invested in additional Common Stock.
A Common Stockholder may recognize a capital gain or loss on the sale
or other disposition of Common Stock. The amount of the gain or loss will be equal to the difference between the amount realized and
the Common Stockholder’s adjusted tax basis in the relevant Common Stock. Such gain or loss generally will be a long-term gain
or loss if the Common Stockholder’s holding period for such Common Stock is more than one (1) year. Under current law, net
capital gains recognized by non-corporate Common Stockholders are generally subject to reduced maximum rates. Losses realized by a Common
Stockholder on the sale or exchange of Common Stock held for six months or less will be treated as long-term capital losses to the extent
of any distribution of long-term capital gain received (or deemed received, as discussed above) with respect to such Common Stock. In
addition, no loss will be allowed on a sale or other disposition of Common Stock if the Common Stockholder acquires Common Stock within
30 days before or after the disposition. In such a case, the basis of the securities acquired will be adjusted to reflect the disallowed
loss.
An additional 3.8% Medicare tax is imposed on certain net investment
income (including ordinary dividends and capital gain distributions received from the Fund and net gains from redemptions or other taxable
dispositions of Fund Common Stock) of U.S. individuals, estates and trusts to the extent that such person’s “modified adjusted
gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust) exceeds
certain threshold amounts.
NON-U.S. COMMON STOCKHOLDERS
If a Common Stockholder is a nonresident alien, a foreign trust or
estate or a foreign corporation, as defined for U.S. federal income tax purposes, (a “non-U.S. Common Stockholder”) whose
ownership of Common Stock is not “effectively connected” with a U.S. trade or business, ordinary income dividends distributed
to such non-U.S. Common Stockholder by the Fund will generally be subject to U.S. federal withholding tax at a rate of 30% (or a lower
rate under an applicable treaty). Net capital gain dividends distributed by the Fund to a non-U.S. Common Stockholder whose ownership
of Common Stock is not “effectively connected” with a U.S. trade or business and who is not an individual present in the
United States for 183 days or more during the taxable year will generally not be subject to U.S. withholding tax. For a more detailed
discussion of the tax consequences of the ownership of Common Stock by a non-U.S. Common Stockholder, please see the discussion in the
SAI under “Tax Matters — Non-U.S. Common Stockholders.”
BACKUP WITHHOLDING
If a Common Stockholder does not provide the applicable payor with
its correct taxpayer identification number and any required certifications, such Common Stockholder may be subject to backup withholding
(currently, at a rate of 24%) on the distributions it receives (or is deemed to receive) from the Fund. Backup withholding will not,
however, be applied to payments that have been subject to the 30% withholding tax applicable to non-U.S. Common Stockholders.
FOREIGN ACCOUNT TAX COMPLIANCE ACT
In addition, the Fund is required to withhold U.S. tax (at a 30% rate)
on payments of taxable dividends made to certain non-U.S. entities that fail to comply (or be deemed compliant) with extensive reporting
and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. To avoid
withholding, foreign financial institutions will need to (i) enter into agreements with the IRS that state that they will provide
the IRS information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders,
comply with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with
respect to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions or
to account holders who fail to provide the required information, and determine certain other information as to their account holders,
or (ii) in the event that an applicable intergovernmental agreement and implementing legislation are adopted, provide local revenue
authorities with similar account holder information. Other foreign entities will need to either provide the name, address, and taxpayer
identification number of each substantial U.S. owner or certifications of no substantial U.S. ownership unless certain exceptions apply.
Under some circumstances, a foreign stockholder may be eligible for refunds or credits of such taxes.
CLOSED-END FUND STRUCTURE
The Fund is a closed-end management investment company. Closed-end
funds differ from open-end management investment companies (commonly referred to as mutual funds) in that closed-end funds generally
list their shares for trading on a securities exchange and do not redeem their shares at the option of the stockholder. By comparison,
mutual funds issue securities redeemable at NAV at the option of the stockholder and typically engage in a continuous offering of their
shares. Mutual funds are subject to continuous asset in-flows and out-flows that can complicate portfolio management, whereas closed-end
funds generally can stay more fully invested in securities consistent with the closed-end fund’s investment objectives and policies.
In addition, in comparison to open-end funds, closed-end funds have greater flexibility in the employment of financial leverage and in
the ability to make certain types of investments, including investments in illiquid securities.
However, stock of closed-end funds frequently trade at a discount
from their NAV. In recognition of the possibility that the Common Stock might trade at a discount to NAV and that any such discount may
not be in the interest of Common Stockholders, the Board, in consultation with the Investment Manager, from time to time may review possible
actions to reduce any such discount. The Fund’s Board approved an open market repurchase and discount management policy (the “Program”).
The Program allows the Fund to purchase, in the open market, its outstanding common stock, with the amount and timing of any repurchase
determined at the discretion of the Fund’s investment manager. Such purchases may be made opportunistically at certain discounts
to net asset value per share in the reasonable judgment of management based on historical discount levels and current market conditions.
The Fund reports repurchase activity on the Fund’s website on a monthly basis. The Board might also consider other options to reduce
the discount, such as tender offers for Common Stock at NAV. There can be no assurance, however, that the Board will decide to undertake
any of these actions or that, if undertaken, such actions would result in the Common Stock trading at a price equal to or close to NAV.
The Board might also consider the conversion of the Fund to an open-end mutual fund, which would also require a vote of the stockholders
of the Fund. Conversion of the Fund to an open-end mutual fund would require approval by both (i) a majority of the Board and (ii) a
vote of stockholders representing the lesser of (a) 67% or more of the outstanding voting securities of the Fund at a stockholder
meeting, if the holders of more than 50% of the outstanding voting securities are present in person or by proxy, or (b) more than
50% of the outstanding voting securities of the Fund.
The Fund may invest up to 20% of its total assets in illiquid securities
for which there may be no or only a limited trading market and for which a low trading volume of a particular security may result in
abrupt and erratic price movements. In order to meet redemptions upon request by stockholders, open-end funds typically cannot have more
than 15% of their net assets in illiquid securities. Thus, if the Fund were to convert to an open-end fund, it would have to adopt a
limitation on illiquid securities and may need to revise its investment objectives, strategies and policies. The composition of the Fund’s
portfolio and/or its investment policies could prohibit the Fund from complying with regulations of the SEC applicable to open-end management
investment funds absent significant changes in portfolio holdings, including with respect to certain illiquid securities, and investment
policies. The Board believes, however, that the closed-end structure is desirable, given the Fund’s investment objective, strategies
and policies. Investors should assume, therefore, that it is highly unlikely that the Board would vote to convert the Fund to an open-end
investment company. Investors should note that the issuance of preferred stock to provide investment leverage could make a conversion
to an open-end fund more difficult because of the voting rights of preferred stockholders, the costs of redeeming preferred shares and
other factors. See “Description of Capital Structure.”
DIVIDEND REINVESTMENT
AND OPTIONAL CASH PURCHASE PLAN
The information contained under the heading “Dividend Reinvestment
and Optional Cash Purchase Plan” in the Fund’s [Annual Report] is incorporated herein by reference.
DESCRIPTION OF CAPITAL
STRUCTURE
The Fund is a corporation organized under the laws of the State of
Maryland pursuant to the Articles of Amendment and Restatement dated as of December 27, 1993 (the “Articles”) and Amended
and Restated By-Laws dated as of November 8, 2005, as may be amended from time to time (the “By-Laws”). The Fund is
authorized to issue one hundred million shares common stock, par value $0.001 per share of Common Stock. The outstanding shares of common
stock are, and the shares of common stock offered hereby will be, duly authorized, fully paid and nonassessable. All shares of common
stock are equal as to dividends, distributions and voting privileges. There are no conversion, preemptive or other subscription rights.
In the event of liquidation, each share of Common Stock is entitled to its proportion of the Fund’s assets after debts and expenses.
There are no cumulative voting rights for the election of Directors. As a NYSE-listed company and as a Maryland corporation, the Fund
is required to hold annual meetings of its stockholders. Under Maryland law, stockholders of the Fund are not liable for the Fund’s
debts or obligations solely by reason of their status as stockholders.
Under Maryland law, a corporation generally
cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange or engage in similar
transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders holding at least two-thirds
of the stock entitled to vote on the matter. However, a Maryland corporation may provide in its charter for approval of these matters
by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. The charter of the Fund provides
for approval of these matters by a majority of all of the votes entitled to be cast on the matter, except in the circumstances described
below under “— Special Voting Provisions.”
GENERAL
Set forth below is information with respect to the Fund’s outstanding
securities as of [ ], 2024:
Title of Class | |
Amount Authorized | |
Amount Held by the Fund or for its
Account | |
Amount Outstanding Exclusive of Common
Stock Held by the Fund or for its Own Account |
|
Common Stock | |
[ ] | |
[ ] | |
[ ] |
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COMMON STOCK
The Articles permit the Fund to issue one hundred million full and
fractional shares of capital stock, which are initially classified as “Common Stock.” Each share of Common Stock represents
an equal proportionate interest in the assets of the Fund with each other share of Common Stock in the Fund. Common Stockholders will
be entitled to the payment of distributions when, as and if declared by the Board. The 1940 Act or the terms of any borrowings or preferred
stock may limit the payment of distributions to the Common Stockholders. Common Stockholders shall be entitled to vote as to matters
on which they are entitled to vote pursuant to the terms of the Articles of Amendment and Restatement in proportion to the number of
shares of Common Stock held, including fractional shares of Common Stock. Common Stockholders shall be entitled to the same limitation
of personal liability extended to common stockholders of private corporations for profit organized under the Maryland law.
The trading or “ticker” symbol of the Common Stock on
the NYSE is “IFN.”
REPURCHASE OF COMMON STOCK
The Fund’s Board approved an open market repurchase and discount
management policy (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common stock,
with the amount and timing of any repurchase determined at the discretion of the Fund’s investment manager. Such purchases may
be made opportunistically at certain discounts to net asset value per share in the reasonable judgment of management based on historical
discount levels and current market conditions. The Fund reports repurchase activity on the Fund’s website on a monthly basis.
PREFERRED STOCK
The Fund does not currently have any preferred stock outstanding.
The Fund’s charter provides
that the Board may classify or reclassify any unissued shares of capital stock into one or more additional or other classes or series,
with rights as determined by the Board, by action by the Board without the approval of the holders of common stock. Holders of common
stock have no preemptive right to purchase any shares of preferred stock that might be issued. The terms of any preferred stock, including
its dividend rate, liquidation preference and redemption provisions, will be determined by the Board, subject to applicable law and the
Fund’s charter. Thus, the Board could authorize the issuance of shares of preferred stock with terms and conditions which could
have the effect of delaying, deferring or preventing a transaction or a change in control that might involve a premium price for holders
of the Fund’s common stock or otherwise be in their best interest.
Notes
The Fund does not currently have any notes outstanding.
The Articles authorize the issuance of debt securities or notes, with
rights as determined by the Board, by action of the Board without the approval of the Common Stockholders. To the extent the Directors
authorize the issuance of any notes, the Directors are also permitted to amend or supplement the Articles, as they deem appropriate.
Any such amendment or supplement may set forth the rights, preferences, powers and privileges of such notes.
Under the 1940 Act, the Fund may only issue one class of senior securities
representing indebtedness, which in the aggregate must have asset coverage immediately after the time of issuance of at least 300%. So
long as notes are outstanding, additional debt securities must rank on a parity with notes with respect to the payment
of interest and upon the distribution of the Fund’s assets.
A Prospectus Supplement relating to any notes will include
specific terms relating to the offering. The terms to be stated in a Prospectus Supplement will include the following:
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the form and title of the security; |
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the aggregate principal amount of the securities; |
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the interest rate of the securities; |
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whether the interest rate for the securities will be determined by auction or remarketing; |
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the maturity dates on which the principal of the securities will be payable; |
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the frequency with which auctions or remarketings, if any, will be held; |
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any changes to or additional events of default or covenants; |
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any minimum period prior to which the securities may not be called; |
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any optional or mandatory call or redemption provisions; |
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the credit rating of the notes; |
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if applicable, a discussion of the material U.S. federal income tax considerations applicable to
the issuance of the notes; and |
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any other terms of the securities. |
The Prospectus Supplement will describe the interest payment provisions
relating to notes. Interest on notes will be payable when due as described in the related Prospectus Supplement. If the
Fund does not pay interest when due, it will trigger an event of default and the Fund will be restricted from declaring dividends and
making other distributions with respect to its common stock and preferred stock.
Under the requirements of the 1940 Act, immediately after issuing
any notes the value of the Fund’s total assets, less certain ordinary course liabilities, must equal or exceed 300% of
the amount of the notes outstanding. Other types of borrowings also may result in the Fund being subject to similar covenants
in credit agreements.
Additionally, the 1940 Act requires that the Fund prohibit the declaration
of any dividend or distribution (other than a dividend or distribution paid in the Fund’s common or preferred stock or
in options, warrants or rights to subscribe for or purchase the Fund’s common or preferred stock) in respect of the Fund’s
common or preferred stock, or call for redemption, redeem, purchase or otherwise acquire for consideration any such fund common
or preferred stock, unless the Fund’s notes have asset coverage of at least 300% (200% in the case of a dividend
or distribution on preferred stock) after deducting the amount of such dividend, distribution, or acquisition price, as the case
may be. These 1940 Act requirements do not apply to any promissory note or other evidence of indebtedness issued in consideration of
any loan, extension, or renewal thereof, made by a bank or other person and privately arranged, and not intended to be publicly distributed;
however, any such borrowings may result in the Fund being subject to similar covenants in credit agreements. Moreover, the Indenture
related to the notes could contain provisions more restrictive than those required by the 1940 Act, and any such provisions
would be described in the related Prospectus Supplement.
Upon the occurrence and continuance of an event of default, the holders
of a majority in principal amount of a series of outstanding notes or the director will be able to declare the principal amount
of that series of notes immediately due and payable upon written notice to the Fund. A default that relates only to one series
of notes does not affect any other series and the holders of such other series of notes will not be entitled to receive
notice of such a default under the Indenture. Upon an event of default relating to bankruptcy, insolvency or other similar laws, acceleration
of maturity will occur automatically with respect to all series. At any time after a declaration of acceleration with respect to a series
of notes has been made, and before a judgment or decree for payment of the money due has been obtained, the holders of a majority
in principal amount of the outstanding notes of that series, by written notice to the Fund and the director, may rescind and
annul the declaration of acceleration and its consequences if all events of default with respect to that series of notes, other
than the non-payment of the principal of that series of notes which has become due solely by such declaration of
acceleration, have been cured or waived and other conditions have been met.
In the event of (a) any insolvency or bankruptcy case or proceeding,
or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith, relative to the Fund or
to the Fund’s creditors, as such, or to the Fund’s assets, or (b) any liquidation, dissolution or other winding up of
the Fund, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy, or (c) any assignment for the
benefit of creditors or any other marshalling of assets and liabilities of the Fund, then (after any payments with respect to any secured
creditor of the Fund outstanding at such time) and in any such event the holders of notes shall be entitled to receive payment
in full of all amounts due or to become due on or in respect of all notes (including any interest accruing thereon after the
commencement of any such case or proceeding), or provision shall be made for such payment in cash or cash equivalents or otherwise in
a manner satisfactory to the holders of the notes, before the holders of any of the Fund’s common or preferred stock are
entitled to receive any payment on account of any redemption proceeds, liquidation preference or dividends from such stock. The holders
of notes shall be entitled to receive, for application to the payment thereof, any payment or distribution of any kind or character,
whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of
the payment of any other indebtedness of the Fund being subordinated to the payment of the notes, which may be payable or deliverable
in respect of the notes in any such case, proceeding, dissolution, liquidation or other winding up event.
Unsecured creditors may include, without limitation, service providers
including the Investment Manager, Custodian, administrator, auction agent, broker-dealers and the director, pursuant to the terms of
various contracts with the Fund. Secured creditors may include without limitation parties entering into any interest rate swap, floor
or cap transactions, or other similar transactions with the Fund that create liens, pledges, charges, security interests, security agreements
or other encumbrances on the Fund’s assets.
A consolidation, reorganization or merger of the Fund with or into
any other company, or a sale, lease or exchange of all or substantially all of the Fund’s assets in consideration for the issuance
of equity securities of another company shall not be deemed to be a liquidation, dissolution or winding up of the Fund.
The notes have no voting rights, except as mentioned below
and to the extent required by law or as otherwise provided in the Indenture relating to the acceleration of maturity upon the occurrence
and continuance of an event of default. In connection with the notes or certain other borrowings (if any), the 1940 Act does
in certain circumstances grant to the note holders or lenders certain voting rights. The 1940 Act requires that provision is made either
(i) that, if on the last business day of each of twelve consecutive calendar months such notes shall have an asset coverage
of less than 100%, the holders of such notes voting as a class shall be entitled to elect at least a majority of the members
of the Fund’s Directors, such voting right to continue until such notes shall have an asset coverage of 110% or more
on the last business day of each of three consecutive calendar months, or (ii) that, if on the last business day of each of twenty-four
consecutive calendar months such notes shall have an asset coverage of less than 100%, an event of default shall be deemed
to have occurred. It is expected that, unless otherwise stated in the related Prospectus Supplement, provision will be made that, if
on the last business day of each of twenty-four consecutive calendar months such notes shall have an asset coverage of less
than 100%, an event of default shall be deemed to have occurred. These 1940 Act requirements do not apply to any promissory note or other
evidence of indebtedness issued in consideration of any loan, extension, or renewal thereof, made by a bank or other person and privately
arranged, and not intended to be publicly distributed; however, any such borrowings may result in the Fund being subject to similar covenants
in credit agreements. As reflected above, the Indenture relating to the notes may also grant to the note holders voting rights
relating to the acceleration of maturity upon the occurrence and continuance of an event of default, and any such rights would be described
in the related Prospectus Supplement.
DESCRIPTION OF SUBSCRIPTION RIGHTS
The Fund may issue subscription rights to holders of Common Stock
to purchase Common Stock. Subscription rights may be issued independently or together with any other offered security and may or may
not be transferable by the person purchasing or receiving the subscription rights. In connection with a subscription rights offering
to holders of Common Stock, the Fund would distribute certificates evidencing the subscription rights and a Prospectus Supplement to
the Fund’s common stockholders as of the record date that the Fund sets for determining the stockholders eligible to receive subscription
rights in such subscription rights offering. For complete terms of the subscription rights, please refer to the actual terms of such
subscription rights which will be set forth in the subscription rights agreement relating to such subscription rights and described in
the Prospectus Supplement.
The applicable Prospectus Supplement, which would accompany this Prospectus,
would describe the following terms of subscription rights in respect of which this Prospectus is being delivered:
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the period of time the offering would remain open (which will be open a minimum number of days such that all record holders would
be eligible to participate in the offering and will not be open longer than 120 days); |
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the title of such subscription rights; |
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the exercise price for such subscription rights (or method of calculation thereof); |
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the number of such subscription rights issued in respect of each share; |
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the number of rights required to purchase a single share; |
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the extent to which such subscription rights are transferable and the market on which they may be traded if they are transferable; |
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if applicable, a discussion of certain U.S. federal income tax considerations applicable to the issuance or exercise of such
subscription rights; |
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the date on which the right to exercise such subscription rights will commence, and the date on which such right will expire
(subject to any extension); |
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the extent to which such subscription rights include an over-subscription privilege with respect to unsubscribed securities and
the terms of such over-subscription privilege; |
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any termination right the Fund may have in connection with such subscription rights offering; |
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the expected trading market, if any, for rights; and |
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any other terms of such subscription rights, including exercise, settlement and other procedures and limitations relating to
the transfer and exercise of such subscription rights. |
Exercise of Subscription Right
Each subscription right would entitle the holder of the subscription
right to purchase for cash such number of shares at such exercise price as in each case is set forth in, or be determinable as set forth
in the Prospectus Supplement relating to the subscription rights offered thereby. Subscription rights would be exercisable at any time
up to the close of business on the expiration date for such subscription rights set forth in the Prospectus Supplement. After the close
of business on the expiration date, all unexercised subscription rights would become void.
Upon expiration of the rights offering and the receipt of payment
and the subscription rights certificate properly completed and duly executed at the corporate trust office of the subscription rights
agent or any other office indicated in the Prospectus Supplement, the Fund would issue, as soon as practicable, the shares of Common
Stock purchased as a result of such exercise. To the extent permissible under applicable law, the Fund may determine to offer any unsubscribed
offered securities directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination
of such methods, as set forth in the applicable Prospectus Supplement.
Transferable Rights Offering
Subscription rights issued by the Fund may be transferrable. The distribution
to stockholders of transferable rights, which may themselves have intrinsic value, also will afford non-participating stockholders the
potential of receiving cash payment upon the sale of the rights, receipt of which may be viewed as partial compensation for any dilution
of their interests that may occur as a result of the rights offering. In a transferrable rights offering, management of the Fund will
use its best efforts to ensure an adequate trading market in the rights for use by stockholders who do not exercise such rights. However,
there can be no assurance that a market for transferable rights will develop or, if such a market does develop, what the price of the
transferable rights will be. In a transferrable rights offering to purchase Common Stock at a price below net asset value, the subscription
ratio will not be less than 1-for-3, that is the holders of Common Stock of record on the record date of the rights offering will receive
one right for each outstanding share of Common Stock owned on the record date and the rights will entitle their holders to purchase one
new share of Common Stock for every three rights held (provided that any Common Stockholder who owns fewer than three shares of Common
Stock as of the record date may subscribe for one full share of Common Stock). Assuming the exercise of all rights, such a rights offering
would result in an approximately 331⁄3% increase in the Fund’s Common Stock outstanding.
Additional Information on the Transferability of Rights. The
staff of the SEC has interpreted the 1940 Act as not requiring stockholder approval of a transferable rights offering to purchase Common
Stock at a price below the then current net asset value so long as certain conditions are met, including: (i) a good faith determination
by a fund’s board that such offering would result in a net benefit to existing stockholders; (ii) the offering fully protects stockholders’
preemptive rights and does not discriminate among stockholders (except for the possible effect of not offering fractional Rights); (iii) management
uses its best efforts to ensure an adequate trading market in the rights for use by stockholders who do not exercise such rights; and
(iv) the ratio of a transferable rights offering does not exceed one new share for each three rights held.
REVERSE REPURCHASE AGREEMENTS
Financial leverage may be achieved through entering into reverse repurchase
agreements under which the Fund sells portfolio securities to financial institutions such as banks and broker-dealers and generally agrees
to repurchase them at a mutually agreed future date and price. The 1940 Act generally limits the extent to which the Fund may utilize
“uncovered” reverse repurchase agreements and borrowings, together with any other senior securities representing indebtedness,
to 33 1/3 % of the Fund’s total assets at the time utilized. “Covered” reverse repurchase agreements will
not be counted against the foregoing limits under the 1940 Act. A reverse repurchase agreement will be considered “covered”
if the Fund segregates an amount of cash and/or liquid securities equal to the Fund’s obligations under such reverse repurchase
agreement (or segregates such other amounts as may be permitted by the 1940 Act or SEC guidance from time to time); otherwise, a reverse
repurchase agreement will be considered “uncovered.” The Fund may not cover a reverse repurchase agreement if it does not
need to do so to comply with the foregoing 1940 Act requirements and, in the view of the Investment Manager, the assets that would have
been used to cover could be better used for a different purpose.
ANTI-TAKEOVER AND CERTAIN OTHER PROVISIONS IN THE ARTICLES OF AMENDMENT
AND RESTATEMENT AND BY-LAWS
The Fund presently has provisions in the Articles and By-Laws that
are commonly referred to as “anti-takeover” provisions and may have the effect of limiting the ability of other entities
or persons to acquire control of the Fund, to cause it to engage in certain transactions or to modify its structure.
First, a Director may be removed from office only for cause by vote
of at least 75% of the shares entitled to be cast for the election of Directors.
Second, the affirmative vote of 75% of the entire Board is required
to authorize the conversion of the Fund from a closed-end to an open-end investment company. The conversion also requires the affirmative
vote of holders of at least 75% of the common stock unless it is approved by a vote of 75% of the Continuing Directors (as defined below),
in which event such conversion requires the approval of the holders of a majority of the common stock. A “Continuing Director”
for purposes of this section is any member of the Board of the Fund who:
| ● | is not a person or
affiliate of a person who enters or proposed to enter into a business combination (as defined
below) with the Fund (an “interested party”), and |
| ● | who has been a member
of the Board for a period of at least 12 months, or has been a member of the Board since
February 1, 1994, or is a successor of a Continuing Director who is unaffiliated with
an interested party and is recommended to succeed a Continuing Director by a majority of
the Continuing Directors then on the Board of the Fund. |
Third, the Board is classified into three classes, each with a term
of three years with only one class of Directors standing for election in any year. Such classification may prevent replacement of a majority
of the Directors for up to a two-year period. The affirmative vote of at least 75% of the shares will also be required to amend the charter
or by-laws to change any of the provisions in this paragraph and the preceding two paragraphs.
Additionally, the affirmative vote of 75% of the entire Board and
the holders of at least (i) 80% of the common stock and (ii) in the case of a business combination (as defined below), 66%
of the common stock other than common stock held by an interested party who is (or whose affiliate is) a party to a business combination
or an affiliate or associate of the interested party, are required to authorize any of the following transactions:
| ● | merger, consolidation
or statutory share exchange of the Fund with or into any other person; |
| ● | issuance or transfer
by the Fund (in one or a series of transactions in any 12-month period) of any securities
of the Fund to any person or entity for cash, securities or other property (or combination
thereof) having an aggregate fair market value of $1,000,000 or more, excluding issuances
or transfers of debt securities of the Fund, sales of securities of the Fund in connection
with a public offering, issuances of securities of the Fund pursuant to a dividend reinvestment
plan adopted by the Fund, issuances of securities of the Fund upon the exercise of any stock
subscription rights distributed by the Fund, transfers by the Fund of securities or other
property to a corporation, trust, partnership or other entity which is wholly owned by the
Fund and portfolio transactions effected by the Fund in the ordinary course of its business; |
| ● | sale, lease, exchange,
mortgage, pledge, transfer or other disposition by the Fund (in one or a series of transactions
in any 12-month period) to or with any person or entity of any assets of the Fund having
an aggregate fair market value of $1,000,000 or more, excluding sales, exchanges, transfers
or other dispositions by the Fund to any person or entity which is wholly owned by the Fund,
and except for portfolio transactions (including pledges of portfolio securities in connection
with borrowings) effected by the Fund in the ordinary course of its business (we refer to
the transactions described in these first three bullets as “business combinations”); |
| ● | the voluntary liquidation
or dissolution of the Fund, or an amendment to the Fund’s charter to terminate the
Fund’s existence; or |
| ● | unless the 1940 Act
or other federal law requires a lesser vote, any stockholder proposal as to specific investment
decisions made or to be made with respect to the Fund’s assets as to which stockholder
approval is required under federal or Maryland law. |
However, the stockholder vote described above will not be required
with respect to the foregoing transactions (other than those set forth in the fifth bullet above) if they are approved by a vote of 75%
of the Continuing Directors. In that case, if Maryland law requires, the affirmative vote of a majority of the votes entitled to be cast
thereon shall be required.
Additionally, any amendment to the Fund’s charter to amend,
alter or repeal (or adopt any provision inconsistent with) the provisions of the charter relating to the purpose and powers of the Fund,
the classification of the Board, removal of directors, the maximum number of directors, the special voting requirements discussed above,
the perpetual existence of the Fund and amendment of the charter must be approved by at least 75% of the entire Board and the holders
of at least 75% of the votes entitled to be cast on the matter.
The Fund’s by-laws contain provisions the effect of which is
to prevent matters, including nominations of Directors, from being considered at a stockholders’ meeting where the Fund has not
received notice of the matters at least 90 days but not more than 120 days prior to the first anniversary of the prior year’s annual
meeting, in the case of an annual meeting, or 10 days following the date notice of such meeting is given by the Fund, in the case of
a special meeting.
Reference is made to the charter and amended and restated by-laws
of the Fund, each on file with the SEC, for the full text of these provisions. The percentage of votes required under these provisions,
which is greater than the minimum requirements under Maryland law absent the elections described above or in the 1940 Act, will make
more difficult a change in the Fund’s business or management and may have the effect of depriving stockholders of an opportunity
to sell shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund in
a tender offer or similar transaction.
PLAN OF DISTRIBUTION
The Fund may offer up to $[ ] in aggregate initial offering price
of Common Stock, Preferred Stock, Notes or Rights from time to time under this Prospectus and any related Prospectus Supplement (1) directly
to one or more purchases, including existing stockholders in a Rights offering; (2) through agents; (3) through underwriters;
(4) through dealers; or (5) pursuant to the Fund’s dividend reinvestment and optional cash purchase plan. Each Prospectus
Supplement relating to an offering of securities will state the terms of the offering, including:
| ● | the names of any agents,
underwriters or dealers; |
| ● | any sales loads or
other items constituting underwriters’ compensation; |
| ● | any discounts, commissions,
or fees allowed or paid to dealers or agents; |
| ● | the public offering
or purchase price of the offered Securities and the net proceeds the Fund will receive from
the sale; and |
| ● | any securities exchange
on which the offered Securities may be listed |
Direct Sales
The Fund may sell Securities directly to, and solicit offers from,
institutional investors or others who may be deemed to be underwriters as defined in the Securities Act for any resales of the securities.
In this case, no underwriters or agents would be involved. The Fund may use electronic media, including the Internet, to sell offered
securities directly. The Fund will describe the terms of any of those sales in a Prospectus Supplement.
By Agents
The Fund may offer Securities through agents that the Fund may designate.
The Fund will name any agent involved in the offer and sale and describe any commissions payable by the Fund in the Prospectus Supplement.
Unless otherwise indicated in the Prospectus Supplement, the agents will be acting on a best efforts basis for the period of their appointment.
By Underwriters
The Fund may offer and sell Securities from time to time to one or
more underwriters who would purchase the Securities as principal for resale to the public, either on a firm commitment or best efforts
basis. If the Fund sells Securities to underwriters, the Fund will execute an underwriting agreement with them at the time of the sale
and will name them in the Prospectus Supplement. In connection with these sales, the underwriters may be deemed to have received compensation
from the Fund in the form of underwriting discounts and commissions. The underwriters also may receive commissions from purchasers of
Securities for whom they may act as agent. Unless otherwise stated in the Prospectus Supplement, the underwriters will not be obligated
to purchase the Securities unless the conditions set forth in the underwriting agreement are satisfied, and if the underwriters purchase
any of the Securities, they will be required to purchase all of the offered Securities. The underwriters may sell the offered Securities
to or through dealers, and those dealers may receive discounts, concessions or commissions from the underwriters as well as from the
purchasers for whom they may act as agent. Any public offering price and any discounts or concessions allowed or reallowed or paid to
dealers may be changed from time to time.
In connection with an offering of Common Stock, if a Prospectus Supplement
so indicates, the Fund may grant the underwriters an option to purchase additional Common Stock at the public offering price, less the
underwriting discounts and commissions, within 45 days from the date of the Prospectus Supplement, to cover any overallotments.
By Dealers
The Fund may offer and sell Securities from time to time to one or
more dealers who would purchase the securities as principal. The dealers then may resell the offered Securities to the public at fixed
or varying prices to be determined by those dealers at the time of resale. The Fund will set forth the names of the dealers and the terms
of the transaction in the Prospectus Supplement.
General Information
Agents, underwriters, or dealers participating in an offering of Securities
may be deemed to be underwriters, and any discounts and commission received by them and any profit realized by them on resale of the
offered Securities for whom they act as agent, may be deemed to be underwriting discounts and commissions under the Securities Act.
The Fund may offer to sell securities either at a fixed price or at
prices that may vary, at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated
prices.
To facilitate an offering of Common Stock in an underwritten transaction
and in accordance with industry practice, the underwriters may engage in transactions that stabilize, maintain, or otherwise affect the
market price of the Common Stock or any other Security. Those transactions may include overallotment, entering stabilizing bids, effecting
syndicate covering transactions, and reclaiming selling concessions allowed to an underwriter or a dealer.
| ● | An overallotment in
connection with an offering creates a short position in the common stock for the underwriter’s
own account. |
| ● | An underwriter may
place a stabilizing bid to purchase the Common Stock for the purpose of pegging, fixing,
or maintaining the price of the Common Stock. |
| ● | Underwriters may engage
in syndicate covering transactions to cover overallotments or to stabilize the price of the
Common Stock by bidding for, and purchasing, the Common Stock or any other Securities in
the open market in order to reduce a short position created in connection with the offering. |
| ● | The managing underwriter
may impose a penalty bid on a syndicate member to reclaim a selling concession in connection
with an offering when the Common Stock originally sold by the syndicate member is purchased
in syndicate covering transactions or otherwise. |
Any of these activities may stabilize or maintain the market price
of the Securities above independent market levels. The underwriters are not required to engage in these activities, and may end any of
these activities at any time.
In connection with any Rights offering, the Fund may also enter into
a standby underwriting arrangement with one or more underwriters pursuant to which the underwriter(s) will purchase Common Stock
remaining unsubscribed for after the Rights offering.
Any underwriters to whom the offered Securities are sold for offering
and sale may make a market in the offered Securities, but the underwriters will not be obligated to do so and may discontinue any market-making
at any time without notice. There can be no assurance that there will be a liquid trading market for the offered Securities.
Under agreements entered into with the Fund, underwriters and agents
may be entitled to indemnification by the Fund, the Investment Manager against certain civil liabilities, including liabilities under
the Securities Act, or to contribution for payments the underwriters or agents may be required to make.
The underwriters, agents, and their affiliates may engage in financial
or other business transactions with the Fund in the ordinary course of business.
Pursuant to a requirement of the Financial Industry Regulatory Authority, Inc.
(“FINRA”) the maximum compensation to be received by any FINRA member or independent broker-dealer in connection with an
offering of the Fund’s securities may not be greater than eight percent (8%) of the gross proceeds received by the Fund for the
sale of any securities being registered pursuant to SEC Rule 415 under the Securities Act.
To the extent permitted under the 1940 Act and the rules and
regulations promulgated thereunder, the underwriters may from time to time act as a broker or dealer and receive fees in connection with
the execution of portfolio transactions on behalf of the Fund after the underwriters have ceased to be underwriters and, subject to certain
restrictions, each may act as a broker while it is an underwriter.
A Prospectus and accompanying Prospectus Supplement in electronic
form may be made available on the websites maintained by underwriters. The underwriters may agree to allocate a number of Securities
for sale to their online brokerage account holders. Such allocations of Securities for internet distributions will be made on the same
basis as other allocations. In addition, Securities may be sold by the underwriters to securities dealers who resell Securities to online
brokerage account holders.
CUSTODIAN, DIVIDEND PAYING
AGENT, TRANSFER AGENT AND REGISTRAR.
State Street serves as Custodian for the Fund. The Custodian holds
cash, securities, and other assets of the Fund as required by the 1940 Act and also provides certain Fund accounting services. Custody
and accounting fees are payable monthly based on assets held in custody, investment purchases and sales activity and other factors, plus
reimbursement for certain out of pocket expenses. The principal business address of State Street is 1 Heritage Drive, 3rd Floor,
North Quincy, Massachusetts 02171. Computershare, P.O. Box 505000, Louisville, KY 40233, acts as the Fund’s dividend paying
agent, transfer agent and the registrar for the Fund’s Common Stock.
LEGAL OPINIONS
Certain legal matters in connection with the Common Stock will be
passed on for the Fund by Dechert LLP.
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The [financial statements as of and for the fiscal year ended December 31,
2023] are incorporated by reference in the SAI have been so incorporated in reliance on the report of [ ], an independent registered
public accounting firm, given on the authority of said firm as experts in auditing and accounting. The principal place of business of
[ ] is located at [ ]. [ ] provides audit services, tax return preparation, and consultation with respect to the preparation of filings
with the SEC.
ADDITIONAL INFORMATION
This Prospectus concisely provides the information that a prospective
investor should know about the Fund before investing. Investors are advised to read this Prospectus carefully and to retain it for future
reference. Additional information about the Fund, including the SAI, dated [●], 2024,
has been filed with the SEC and is incorporated by reference in its entirety into this prospectus. The SAI and the Fund’s annual
and semi-annual reports and other information filed with the SEC, can be obtained upon request and without charge by writing to the Fund
at 1900 Market Street, Suite 200, Philadelphia, PA 19103, by calling Investor Relations toll-free at 1-800-522-5465 or by visiting
the Fund’s website at https://www.abrdnifn.com/. Investors may request the Fund’s SAI, annual and semi-annual reports and
other information about the Fund or make Stockholder inquiries by calling Investor Relations toll-free at 1-800-522-5465 or by visiting
https://www.abrdnifn.com/. In addition, the contact information provided above may be used to request additional information about the
Fund and to make Stockholder inquiries. The SAI, other material incorporated by reference into this prospectus and other information
about the Fund is also available on the SEC’s website at http://www.sec.gov. The address of the SEC’s website is provided
solely for the information of prospective investors and is not intended to be an active link.
The information in this Statement
of Additional Information is not complete and may be changed. The Fund may not sell these securities until the Registration Statement
filed with the Securities and Exchange Commission is effective. This Statement of Additional Information is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject
to Completion Dated February 6, 2024
THE
INDIA FUND, INC.
Statement
of Additional Information
[●], 2024
This Statement of Additional Information (the “SAI”) provides
additional information to the Prospectus for The India Fund, Inc. (the “Fund”) dated [●], 2024 as it may be
amended from time to time. This SAI is not a prospectus and should only be read in conjunction with the Prospectus. You may obtain the
Prospectus without charge by writing to the Fund at 1900 Market Street, Suite 200, Philadelphia, PA 19103, by calling Investor Relations
toll-free at 1-800-522-5465 or by visiting the Fund’s website at https://www.abrdnifn.com/.
Investors in the Fund will be informed of the Fund’s progress
through periodic reports. Financial statements certified by an independent registered public accounting firm will be submitted to Stockholders
at least annually. Once available, copies of the reports to Stockholders may be obtained upon request, without charge, by contacting the
Fund at the address or telephone number listed above.
Table
of Contents
Investment objective, policies and risks |
3 |
|
|
Investment restrictions |
3 |
|
|
Management of the Fund |
4 |
|
|
Portfolio transactions and brokerage allocation |
8 |
|
|
Description of stock |
10 |
|
|
Repurchase of Common Stock |
11 |
|
|
Tax matters |
12 |
|
|
Proxy voting policy and proxy voting record |
19 |
|
|
Incorporation by reference |
19 |
|
|
Financial Statements |
19 |
|
|
Legal counsel |
20 |
|
|
Additional information |
20 |
|
|
Appendix A—Proxy voting guidelines |
A-1 |
Investment objective, policies and risks
The following disclosure supplements the disclosure set forth under
the caption “Investment Objective and Principal Investment Strategy” in the prospectus and does not, by itself, present a
complete or accurate explanation of the matters disclosed. Readers must refer also to this caption in the prospectus for a complete presentation
of the investment objective, policies and risks.
Investment Restrictions
The following restrictions, along with the Fund’s investment
objective, its policy to invest at least 80% of the Fund’s total assets in the equity securities of Indian companies under normal
market conditions, are, subject to the next sentence, the Fund’s only fundamental policies, that is, policies that cannot be changed
without the approval of the holders of a majority of the Fund’s outstanding voting securities. In addition, as a matter of fundamental
policy and notwithstanding any other fundamental investment policy or limitation, the Fund may invest all or a portion of its assets invested
in India through a subsidiary, trust or other similar arrangement (including a branch) established by the Fund at any such time that the
Board of the Fund determines that it is in the best interests of the Fund’s stockholders. As used in here, a “majority of
the Fund’s outstanding voting securities” means the lesser of (i) 67% of the shares represented at a meeting at which
more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares. The other policies and investment
restrictions referred to in this report are not fundamental policies of the Fund and may be changed by the Fund’s Board without
stockholder approval. If a percentage restriction set forth below is adhered to at the time a transaction is effected, later changes in
any percentage resulting from any cause other than actions by the Fund will not be considered a violation.
Under its fundamental restrictions, the Fund may not:
| 1. | purchase any securities that would cause 25% or more of the value of its total assets at the time of such purchase to be invested
in securities of one or more issuers conducting their principal business activities in the same industry, except that there is no limitation
with respect to investment in obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities; |
| 2. | issue senior securities or borrow money, except for (a) senior securities (including borrowing money, margin transactions if
the margin securities are owned and entering into reverse repurchase agreements, or any similar transactions) not in excess of 25% of
its total assets (including the amount borrowed) and (b) borrowings of up to 5% of its total assets (including the amount borrowed)
for temporary or emergency purposes (including for the clearance of transactions, repurchase of its shares or payment of dividends), without
regard to the amount of senior securities outstanding under clause (a). However, with respect to the above, the Fund’s obligations
under when-issued and delayed delivery and similar transactions and reverse repurchase agreements are not treated as senior securities
if covering assets are appropriately segregated, and the use of hedging shall not be treated as involving the issuance of a “senior
security” or a “borrowing.” Also, for purposes of clauses (a) and (b) above, the term “total assets”
shall be calculated after giving effect to the net proceeds of senior securities issued by the Fund reduced by any liabilities and indebtedness
not constituting senior securities, except for such liabilities and indebtedness as are excluded from treatment as senior securities by
this second bullet. The Fund’s obligations under interest rate, currency and equity swaps are not treated as senior securities; |
| 3. | purchase or sell commodities or commodity contracts, including futures contracts and options thereon, except that the Fund may engage
in hedging, as described in the section titled “Additional Investment Activities – Hedging”; |
| 4. | make loans, except that: (1) the Fund may (a) purchase and hold debt instruments (including bonds, debentures or other obligations
and certificates of deposit, bankers’ acceptances and fixed time deposits) in accordance with its investment objective and policies,
(b) enter into repurchase agreements with respect to portfolio securities and (c) make loans of portfolio securities; and (2) delays
in the settlement of securities transactions will not be considered loans; |
| 5. | underwrite the securities of other issuers, except to the extent that, in connection with the disposition of portfolio securities,
it may be deemed to be an underwriter; |
| 6. | purchase real estate, real estate mortgage loans or real estate limited partnership interests (other than securities secured by real
estate or interests therein or securities issued by companies that invest in real estate or interests therein); |
| 7. | purchase securities on margin, except (1) as provided in the second bullet above and (2) (a) for delayed delivery or
when-issued transactions, (b) such short-term credits as are necessary for the clearance of transactions and (c) margin deposits
in connection with transactions in futures contracts, options on futures contracts, options on securities and securities indices and currency
transactions); or |
| 8. | invest for the purpose of exercising control over the management of any company. |
For purposes of the above restrictions on senior securities and as
further described above under “Additional Investment Activities – Asset Coverage Requirements,” the 1940 Act requires
the Fund to satisfy an asset coverage requirement of 300% of its indebtedness, including amounts borrowed, measured at the time the Fund
incurs the indebtedness. Short sales of securities, reverse repurchase agreements, use of margin, sales of put and call options on specific
securities or indices, investments in certain other types of instruments (including certain derivatives, such as swap agreements) and
the purchase and sale of securities on a when-issued or forward commitment basis may be deemed to constitute indebtedness subject to this
requirement.
For purposes of the above restrictions on loans of portfolio
securities and as further described above under “Additional Investment Activities – Loans of Portfolio Securities”
in the [Annual Report for the fiscal year ended December 31, 2023], the Fund may make loans of portfolio securities if liquid
assets in an amount at least equal to the current market value of the securities lent (including accrued interest thereon) plus the
interest payable to the Fund with respect to the loan is maintained by the Fund in a segregated account.
Management of the Fund
Directors and Officers
The business and affairs of the Fund are managed under the direction
of the Board and the Fund’s officers appointed by the Board. The tables below list the directors and officers of the Fund and their
present positions and principal occupations during the past five years. The business address of the Fund, its Board members and officers
and the Investment Manager is 1900 Market Street, Suite 200, Philadelphia, PA 19103, unless specified otherwise below. The term “Fund
Complex” includes each of the registered investment companies advised by the Investment Manager or their affiliates as of the date
of this SAI. Directors serve three-year terms or until their successors are duly elected and qualified. Officers are annually elected
by the directors.
The information contained under the heading “Management of the
Fund” in the Fund’s [Annual Report] is incorporated herein by reference.
Risk Oversight
The information contained under the heading “Responsibilities
of the Board of Directors” in the Fund’s definitive proxy statement on Schedule
14A for the Fund’s 2023 annual meeting of shareholders, filed with the SEC on April 14, 2023 (“Proxy Statement”)
is incorporated herein by reference.
Experience of Directors
Each Director was selected to join the Board based on a variety of
factors including, but not limited to, the Director’s ability to carry out his or her duties as a Director, the Director’s
background, business and professional experience, qualifications and skills. Each Director possesses the following specific characteristics:
Ms. Kumar has financial and accounting experience as the chief financial officer of other companies and experience as a board member
of private equity funds; Ms. Yao has financial and research analysis experience in and covering the Asia region and experience in
world affairs; Mr. Rubio has business and academic experience as president of a not-for-profit think tank focused on Mexico’s economic
and democratic development and has served as a board member of other investment companies; Mr. Goodson has financial and research
analysis experience; and Mr. Salacuse has academic and foreign affairs experience and has served as a board member of other investment
companies. The Board has determined that Ms. Kumar is an “audit committee financial expert”.
Compensation
The following table sets forth information regarding compensation of
Directors by the Fund and by the Fund Complex of which the Fund is a part for the fiscal year ended December 31, 2023. Officers of
the do not receive any compensation directly from the Fund or any other fund in the Fund Complex for performing their duties as officers.
Name of Director | |
Aggregate Compensation from Fund for Fiscal Year Ended December 31, 2023 | | |
Total Compensation From Fund and Fund Complex Paid To Directors | |
Nisha Kumar | |
$ | 62,126 | | |
$ | 62,126 | |
Nancy Yao | |
$ | 62,126 | | |
$ | 322,841 | |
Jeswald W. Salacuse | |
$ | 80,139 | | |
$ | 80,139 | |
Luis F. Rubio | |
$ | 62,126 | | |
$ | 62,126 | |
Alan Goodson* | |
| N/A | | |
| N/A | |
*Mr. Goodson is considered an Interested Director.
Board and Committee Structure
The information contained under the headings “Responsibilities
of the Board of Directors,” “Audit Committee” and “Nominating Committee” in the Fund’s Proxy
Statement is incorporated herein by reference.
Stockholder Communications
The Fund has adopted procedures by which Fund stockholders may send
communications to the Board. Stockholders may mail written communications to the Board to the attention of Directors of The India Fund, Inc.,
c/o the Fund’s Chief Legal Officer, 1900 Market Street, Suite 200, Philadelphia, PA 19103. Stockholder communications must (i) be
in writing and be signed by the stockholder and (ii) identify the number of shares held by the stockholder. The Chief Legal Officer
of the Fund is responsible for reviewing properly submitted stockholder communications. The Chief Legal Officer shall either (i) provide
a copy of each properly submitted stockholder communication to the Board at its next regularly scheduled board meeting or (ii) if
the Chief Legal Officer determines that the communication requires more immediate attention, forward the communication to the Directors
promptly after receipt. The Chief Legal Officer may, in good faith, determine that a stockholder communication should not be provided
to the Board because it does not reasonably relate to the Fund or its operations, management, activities, policies, service providers,
Board, officers, stockholders or other matters relating to an investment in the Fund or is otherwise ministerial in nature. These procedures
shall not apply to (i) any communication from an officer or Director of the Fund, (ii) any communication from an employee or
agent of the Fund, unless such communication is made solely in such employee’s or agent’s capacity as a stockholder of the Fund, or (iii) any
stockholder proposal submitted pursuant to Rule 14a-8 under the 1934 Act or any communication made in connection with such a proposal.
Director Beneficial Ownership of Securities
As of the date of this SAI, the Fund’s trustees and executive
officers, as a group, [owned less than 1% of the Fund’s outstanding shares of Common Stock. The information as to ownership
of securities which appears below is based on statements furnished to the Fund by its trustees and executive officers.]
As of December 31, 2023, the dollar range of equity securities
owned beneficially by each trustee in the Fund and in all registered investment companies overseen by the trustee within the same family
of investment companies as the Fund appears in the chart below. The following key relates to the dollar ranges in the chart:
A. None
B. $1 — $10,000
C. $10,001 — $50,000
D. $50,001 — $100,000
E. over $100,000
Name of Director | |
| Dollar Range of Equity Securities Owned(1) | | |
| Aggregate Dollar Range of Equity Securities in All Funds Overseen by Director or Nominee in the Family of Investment Companies(2) | |
Independent Director: | |
| | | |
| | |
Nisha Kumar | |
| [ ] | | |
| [ ] | |
Nancy Yao | |
| [ ] | | |
| [ ] | |
Jeswald W. Salacuse | |
| [ ] | | |
| [ ] | |
Luis F. Rubio | |
| [ ] | | |
| [ ] | |
Interested Director: | |
| [ ] | | |
| [ ] | |
Alan Goodson | |
| [ ] | | |
| [ ] | |
Codes of Ethics
The Fund and the Investment Manager have each adopted a code of ethics
under Rule 17j-1 of the 1940 Act governing the personal securities transactions of their respective personnel. Under each code of
ethics, personnel may invest in securities for their personal accounts (including securities that may be purchased or held by the Fund),
subject to certain general restrictions and procedures. Copies of these Codes of Ethics are on the EDGAR Database on the SEC’s internet
web site at www.sec.gov.
Beneficial Ownership
Based upon filings made with the SEC as of the date hereof, the following
table shows certain information concerning persons who may be deemed beneficial owners of 5% or more of a class of shares of the Fund
because they possessed or shared voting or investment power with respect to the Fund’s shares:
Name and Address | |
| Number of Shares Beneficially Owned | | |
| Percentage of Shares | |
[ ] | |
| [ ] | | |
| [ ] | % |
The Investment Manager
The Investment Manager provides day-to-day investment management services
to the Fund. abrdn Asia Limited serves as the Investment Manager to the Fund. abrdn Asia is located at 7 Straits View #23-04 Marina One
East Tower, Singapore 018936. abrdn Asia is an indirect wholly owned subsidiary of abrdn plc which managed or administered approximately
$632.2 billion in assets as of June 30, 2023.
Advisory Agreement
The Fund and the Investment Manager are parties to an investment management
agreement (the “Advisory Agreement”). Under the Advisory Agreement, the Fund retains the Investment Manager to act as the
investment adviser for and to manage the investment and reinvestment of the assets of the Fund in accordance with the Fund’s investment
objectives and policies and limitations, and to manage the day-to-day business and affairs of the Fund (except with respect to matters
in the charge of the Fund’s chief compliance officer or other service providers retained by the Fund), for the period and on the
terms set forth in the Advisory Agreement.
Under an advisory agreement, the Investment Manager receives an annual
fee, at an annual rate of: (i) 1.10% for the first $500 million of the Fund’s average weekly Managed Assets; (ii) 0.90%
for the next $500 million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the next $500 million of the Fund’s
average weekly Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets in excess of $1.5 billion. Managed
Assets is defined in the investment management agreement as net assets plus the amount of any borrowings for investment purposes.
The Fund pays all of its expenses including, among others, legal fees
and expenses of counsel to the Fund and the Fund’s independent directors; insurance (including directors’ and officers’
errors and omissions insurance); auditing and accounting expenses; taxes and governmental fees; listing fees; dues and expenses incurred
in connection with membership in investment company organizations; fees and expenses of the Fund’s custodians, administrators, transfer
agents, registrars and other service providers; expenses for portfolio pricing services by a pricing agent, if any; other expenses in
connection with the issuance, offering and underwriting of shares or debt instruments issued by the Fund or with the securing of any credit
facility or other loans for the Fund; expenses relating to investor and public relations; expenses of registering or qualifying securities
of the Fund for public sale; brokerage commissions and other costs of acquiring or disposing of any portfolio holding of the Fund; expenses
of preparation and distribution of reports, notices and dividends to stockholders; expenses of the dividend reinvestment and optional
cash purchase plan (except for brokerage expenses paid by participants in such plan); compensation and expenses of directors; costs of
stationery; any litigation expenses; and costs of stockholders’ and other meetings.
The Advisory Agreement continues for an initial term of two (2) years
and may be continued thereafter from year to year provided such continuance is specifically approved at least annually in the manner required
by the 1940 Act. The Advisory Agreement may be terminated at any time without payment of penalty by the Fund or by the Investment Manager
upon 60 days’ written notice. The Advisory Agreement will automatically terminate in the event of its assignment, as defined under
the 1940 Act. Under the Advisory Agreement, the Investment Manager is permitted to provide investment advisory services to other clients.
For the fiscal years ended December 31, 2021, 2022 and 2023, the
Investment Manager earned gross advisory fees of $6,865,163, $5,846,518, and $5,363,266, respectively.
The Advisory Agreement provides that the Investment Manager will not
be liable for any error of judgment or mistake of law, or for any act or omission or any loss suffered by the Fund in connection with
matters to which the Advisory Agreement relates, except for a loss resulting from willful misfeasance, bad faith or gross negligence on
the part of the Investment Manager in the performance of its duties (“disabling conduct”) and provides for indemnification
by the Fund of the Investment Manager for any and all losses, claims, damages, liabilities or expenses (including reasonable counsel fees
and expenses) not resulting from disabling conduct by the Investment Manager, subject to certain limitations and conditions.
The Administrator
abrdn Inc., an affiliate of abrdn Asia and located at 1900 Market Street,
Suite 200, Philadelphia, PA 19103, serves as the Fund’s administrator and receives a fee payable monthly by the Fund at an
annual fee rate of 0.08% of the value of the Fund’s average monthly net assets.
For the fiscal years ended December 31, 2021, 2022 and 2023, abrdn
Inc. earned $521,348, $431,376 and $390,526, respectively from the Fund for administration services.
State Street Bank and Trust Company (“State Street”) serves
as sub-administrator of the Fund and is paid by abrdn Inc. out of the fees it receives as the Fund’s administrator.
Custodian, Dividend Paying Agent, Transfer Agent and Registrar
State Street serves as custodian (the “Custodian”) for
the Fund. State Street also provides accounting services to the Fund. Computershare Trust Company, N.A. serves as transfer agent for the
Fund.
Investor Relations Provider
Under the terms of the Investor Relations Services Agreement, abrdn
Inc. provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by abrdn
Asia 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 abrdn Inc. so that the Fund will only pay up to an annual rate of 0.05% of the Fund’s weekly net assets per annum.
Any difference between the capped rate of 0.05% of the Fund’s average net assets per annum and the Fund’s Portion is paid
for by abrdn Inc.
Pursuant to the terms of the Investor Relations Services Agreement,
abrdn Inc. (or third parties engaged by abrdn Inc.) among other things, provides objective and timely information to stockholders based
on publicly-available information; provides information efficiently through the use of technology while offering stockholders 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 stockholders; responds to specific stockholder
questions; and reports activities and results to the Board and management detailing insight into general stockholder sentiment.
During the fiscal year ended December 31, 2023, the Fund incurred
investor relations fees of approximately $145,703. [For the fiscal year ended December 31, 2023, abrdn Inc. 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.]
Portfolio Management
The information contained under “Item 8. Portfolio Managers of
Closed-End Management Investment Companies” in the Fund’s [Annual Report] is incorporated herein by reference.
James Thom, Flavia Cheong, Kristy Fong, and Yoojeong Oh are jointly
and primarily responsible for the day-to-day management of the Fund’s portfolio.
Potential Conflicts of Interest of the Investment Manager
The Investment Manager and its affiliates (collectively referred to
herein as “abrdn”) serve as investment advisers for multiple clients, including the Fund and other investment companies registered
under the 1940 Act and private funds (such clients are also referred to below as “accounts”). The portfolio managers’
management of “other accounts” may give rise to potential conflicts of interest in connection with their management of the
Fund’s investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same
investment objective as the Fund. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives,
whereby the portfolio manager could favor one account over another. However, the Investment Manager believes that these risks are mitigated
by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in
a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts,
differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid
potential conflicts. In addition, the Investment Manager has adopted trade allocation procedures that require equitable allocation of
trade orders for a particular security among participating accounts.
In some cases, another account managed by the same portfolio manager
may compensate abrdn based on the performance of the portfolio held by that account. The existence of such a performance-based fee may
create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities.
Another potential conflict could include instances in which securities
considered as investments of the Fund also may be appropriate for other investment accounts managed by the Investment Manager or its affiliates.
Whenever decisions are made to buy or sell securities for the Fund and one or more of the other accounts simultaneously, the Investment
Manager may aggregate the purchases and sales of the securities and will allocate the securities transactions in a manner that it believes
to be equitable under the circumstances. As a result of the allocations, there may be instances where the Fund will not participate in
a transaction that is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect
on the price or amount of the securities available to the Fund from time to time, it is the opinion of the Investment Manager that the
benefits from the policies outweigh any disadvantage that may arise from exposure to simultaneous transactions. The Fund has adopted policies
that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies
will detect each and every situation in which a conflict arises.
From time to time, the Investment Manager may seed proprietary accounts
for the purpose of evaluating a new investment strategy that eventually may be available to clients through one or more product structures.
Such accounts also may serve the purpose of establishing a performance record for the strategy. The management by the Investment Manager
of accounts with proprietary interests and nonproprietary client accounts may create an incentive to favor the proprietary accounts in
the allocation of investment opportunities, and the timing and aggregation of investments. The Investment Manager proprietary seed accounts
may include long-short strategies, and certain client strategies may permit short sales. A conflict of interest arises if a security is
sold short at the same time as a long position, and continuous short selling in a security may adversely affect the stock price of the
same security held long in client accounts. The Investment Manager have adopted various policies to mitigate these conflicts.
The Investment Manager or their respective members, officers, directors,
employees, principals or affiliates may come into possession of material, non-public information. The possession of such information may
limit the ability of the Fund to buy or sell a security or otherwise to participate in an investment opportunity. Situations may occur
where the Fund could be disadvantaged because of the investment activities conducted by the Investment Manager for other clients, and
the Investment Manager will not employ information barriers with regard to its operations on behalf of its registered and private funds,
or other accounts. In certain circumstances, employees of the Investment Manager may serve as board members or in other capacities for
portfolio or potential portfolio companies, which could restrict the Fund’s ability to trade in the securities of such companies.
Portfolio transactions and brokerage allocation
The Investment Manager is responsible for decisions to buy and sell
securities and other investments for the Funds, the selection of brokers and dealers to effect the transactions and the negotiation of
brokerage commissions, if any. In transactions on stock and commodity exchanges in the United States, these commissions are negotiated,
whereas on foreign stock and commodity exchanges these commissions are generally fixed and are generally higher than brokerage commissions
in the United States. In the case of securities traded on the OTC markets or for securities traded on a principal basis, there is generally
no commission, but the price includes a spread between the dealer’s purchase and sale price. This spread is the dealer’s profit.
In underwritten offerings, the price includes a disclosed, fixed commission or discount. Most short term obligations are normally traded
on a “principal” rather than agency basis. This may be done through a dealer (e.g., a securities firm or bank) who buys or
sells for its own account rather than as an agent for another client, or directly with the issuer.
Except as described below, the primary consideration in portfolio security
transactions is best execution of the transaction (i.e., execution at a favorable price and in the most effective manner possible). “Best
execution” encompasses many factors affecting the overall benefit obtained by the client account in the transaction including, but
not necessarily limited to, the price paid or received for a security, the commission charged, the promptness, available liquidity and
reliability of execution, the confidentiality and placement accorded the order, and customer service. Therefore, “best execution”
does not necessarily mean obtaining the best price alone but is evaluated in the context of all the execution services provided. The Investment
Manager has freedom as to the markets in and the broker-dealers through which they seek this result, except where mandates have restrictions
in place.
Subject to the primary consideration of seeking best execution and
as discussed below, securities may be bought or sold through broker-dealers who have furnished statistical, research, corporate access,
and other information or services to the Investment Manager. SEC regulations provide a “safe harbor” that allows an investment
adviser to pay for research and brokerage services with commission dollars generated by client transactions. Effective with the implementation
of Markets in Financial Instruments Directive II (“MiFID II”), the Investment Manager absorbs all research costs and will
generally no longer rely on the “safe harbor” under Section 28(e) of the Securities Exchange Act of 1934.
There may be occasions when portfolio transactions for a Fund are executed
as part of concurrent authorizations to purchase or sell the same security for trusts or other accounts (including other mutual funds)
served by the Investment Manager or by an affiliated company thereof. Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to a Fund, they are affected only when the Investment Manager believes that to do so is in the interest
of the Fund. When such concurrent authorizations occur, the executions will be allocated in an equitable manner in accordance with the
Investment Manager’s trade allocation policies and procedures.
In purchasing and selling investments for the Fund, it is the policy
of the Investment Manager to seek best execution through responsible broker-dealers. The determination of what may constitute best execution
in a securities transaction by a broker involves a number of considerations, including the overall direct net economic result to the Fund
(involving both price paid or received and any commissions and other costs paid), the efficiency with which the transaction is effected,
the ability to effect the transaction at all when a large block is involved, the availability of the broker to stand ready to execute
possibly difficult transactions in the future, the professionalism of the broker, and the financial strength and stability of the broker.
These considerations are judgmental and are weighed by the Investment Manager in determining the overall reasonableness of securities
executions and commissions paid. In selecting broker-dealers, the Investment Manager will consider various relevant factors, including,
but not limited to, the size and type of the transaction; the nature and character of the markets for the security or asset to be purchased
or sold; the execution efficiency, settlement capability, and financial condition of the broker dealer’s firm; the broker-dealer’s
execution services, rendered on a continuing basis; and the reasonableness of any commissions.
With respect to FX transactions, different considerations or circumstances
may apply, particularly with respect to Restricted Market FX. FX transactions executed for the Fund are divided into two main categories:
(1) Restricted Market FX and (2) Unrestricted Market FX. Restricted Market FX are required to be executed by a local bank in
the applicable market. Unrestricted Market FX are not required to be executed by a local bank. The Investment Manager or third-party agent
execute Unrestricted Market FX relating to trading decisions. The Fund’s custodian executes all Restricted Market FX because it
has local banks or relationships with local banks in each of the restricted markets where custodial client accounts hold securities. Unrestricted
Market FX relating to the repatriation of dividends and/or income/expense items not directly relating to trading may be executed by the
Investment Manager or by the Fund’s custodian due to the small currency amount and lower volume of such transactions. The Fund,
the Investment Manager has limited ability to negotiate prices at which certain FX transactions are customarily executed by the Fund’s
custodian, i.e., transactions in Restricted Market FX and repatriation transactions.
The Investment Manager may cause the Fund to pay a broker-dealer a
commission that is in excess of the commission another broker-dealer would have received for executing the transaction if it is determined
to be consistent with the Investment Manager’s obligation to seek best-execution pursuant to the standards described above.
Under the 1940 Act, “affiliated persons” of the Fund are
prohibited from dealing with it as a principal in the purchase and sale of securities unless an exemptive order allowing such transactions
is obtained from the SEC. However, the Fund may purchase securities from underwriting syndicates of which a sub-adviser (if applicable)
or any of its affiliates, as defined in the 1940 Act, is a member under certain conditions, in accordance with Rule 10f-3 under the
1940 Act.
The Fund contemplates that, consistent with the policy of seeking to
obtain best execution, brokerage transactions may be conducted through “affiliated brokers or dealers,” as defined in rules under
the 1940 Act. Under the 1940 Act, commissions paid by the Fund to an “affiliated broker or dealer” in connection with a purchase
or sale of securities offered on a securities exchange may not exceed the usual and customary broker’s commission. Accordingly,
it is the Fund’s policy that the commissions to be paid to an affiliated broker-dealer must, in the judgment of the Investment Manager,
be (1) at least as favorable as those that would be charged by other brokers having comparable execution capability and (2) at
least as favorable as commissions contemporaneously charged by such broker or dealer on comparable transactions for the broker’s
or dealer’s unaffiliated customers. The Investment Manager does not necessarily deem it practicable or in the Fund’s best
interests to solicit competitive bids for commissions on each transaction. However, consideration regularly is given to information concerning
the prevailing level of commissions charged on comparable transactions by other brokers during comparable periods of time.
Neither the Fund nor the Investment Manager has an agreement or understanding
with a broker-dealer, or other arrangements to direct the Fund’s brokerage transactions to a broker-dealer because of the research
services such broker provides to the Fund or the Investment Manager. While the Investment Manager does not have arrangements with any
broker-dealers to direct such brokerage transactions to them because of research services provided, the Investment Manager may receive
research services from such broker-dealers. The dollar amount of transactions and related commissions for transactions paid to a broker
from which the Investment Manager also received research services for the fiscal year ended December 31, 2023 are in the table below:
| Total Dollar Amount of Transactions | | |
| Total Commissions Paid on Such Transactions | |
$ | [ ] | | |
$ | [ ] | |
During the fiscal years ended December 31, 2023, 2022 and 2021,
the following brokerage commissions were paid by the Fund:
| Year ended December 31, | |
| ($000 omitted) | |
| 2023 | | |
| 2022 | | |
| 2021 | |
$ | [ ] | | |
$ | [ ] | | |
$ | [ ] | |
[During the fiscal year ended December 31, 2023, Fund did not
hold any investments in securities of its regular broker-dealers (as defined in Rule 10b-1 under the 1940 Act).]
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the Fund’s performance. The rate of portfolio turnover in the fiscal years ended December 31,
2023 and December 31, 2022 was 22% and 24%, respectively.
Description of stock
Common Stock
The Fund’s Common Stock are described in the prospectus. The
Fund intends to hold annual meetings of stockholders so long as the Common Stock are listed on a national securities exchange and such
meetings are required as a condition to such listing.
Preferred Stock
The terms of any preferred stock issued by the Fund, including their
dividend rate, voting rights, liquidation preference and redemption provisions, will be determined by the Board (subject to applicable
law and the Fund’s Articles) if and when it authorizes an offering of preferred stock. The rights, preferences, powers and
privileges of such preferred stock may be set forth in an amendment or supplement to the Fund’s Articles of Incorporation.
If the Board determines to proceed with an offering of preferred stock,
the terms of the preferred stock may be the same as, or different from, the terms described in the prospectus, subject to applicable law
and the Fund’s Articles of Incorporation. The Board, without the approval of the Common Stockholders, may authorize an offering
of preferred stock or may determine not to authorize such an offering, and may fix the terms of the preferred stock to be offered.
Other Stock
The Board (subject to applicable law and the Fund’s Articles
of Incorporation) may authorize an offering, without the approval of the holders of either Common Stock or preferred stock, of other classes
of stock, or other classes or series of stock, as they determine to be necessary, desirable or appropriate, having such terms, rights,
preferences, privileges, limitations and restrictions as the Board sees fit. The Fund currently does not expect to issue any other classes
of stock, or series of stock, except for the Common Stock, and possibly, the preferred stock.
Repurchase of Common Stock
The Fund is a closed-end management investment company and as such
its Common Stockholders will not have the right to cause the Fund to redeem their Common Stock. Instead, the Fund’s Common Stock
trade in the open market at a price that will be a function of several factors, including dividend levels (which are in turn affected
by expenses), NAV, call protection, dividend stability, relative demand for and supply of such Common Stock in the market, general market
and economic conditions and other factors. Because stock of a closed-end investment company may frequently trade at prices lower than
NAV, the Board may consider actions that might be taken to reduce or eliminate any material discount from NAV in respect of Common Stock,
which may include the repurchase of such Common Stock in the open market or in private transactions, the making of a tender offer for
such Common Stock or the conversion of the Fund to an open-end investment company. The Board has authorized repurchases of Common Stock
through open market transactions if deemed necessary or desirable in reducing the discount from NAV in the market price of Common Stock,
provided that the Fund may not repurchase more than 10% of its outstanding Common Stock in any calendar year. The Board may decide not
to take any of the other aforementioned actions. In addition, there can be no assurance that Common Stock repurchases or tender offers,
if undertaken, will reduce market discount.
Notwithstanding the foregoing, at any time when the Fund has preferred
stock outstanding, the Fund may not purchase, redeem or otherwise acquire any of its Common Stock unless (1) all accrued preferred
share dividends have been paid and (2) at the time of such purchase, redemption or acquisition, the NAV of the Fund’s portfolio
(determined after deducting the acquisition price of the Common Stock) is at least 200% of the liquidation value of the outstanding preferred
stock (expected to equal the original purchase price per share plus any accrued and unpaid dividends thereon). Any service fees incurred
in connection with any tender offer made by the Fund will be borne by the Fund and will not reduce the stated consideration to be paid
to tendering Common Stockholders.
Subject to its investment restrictions, the Fund may borrow to finance
the repurchase of Common Stock or to make a tender offer. Interest on any borrowings to finance Common Stock repurchase transactions or
the accumulation of cash by the Fund in anticipation of Common Stock repurchases or tenders will reduce the Fund’s net income. Any
Common Stock repurchase, tender offer or borrowing that might be approved by the Board would have to comply with the Exchange Act, the
1940 Act and the rules and regulations thereunder.
The Fund’s Board approved an open market repurchase and discount
management policy (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common stock,
with the amount and timing of any repurchase determined at the discretion of the Investment Manager. 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.
The Board currently has no intention to take any other action in response
to a discount from NAV. Further, it is the Board’s intention not to authorize repurchases of Common Stock or a tender offer for
such Common Stock if: (1) such transactions, if consummated, would (a) result in the delisting of the Common Stock from the
NYSE or (b) impair the Fund’s status as a regulated investment company under the Internal Revenue Code of 1986, as amended (the “Code”) (which would make the Fund a taxable
entity, causing the Fund’s income to be taxed at the trust level in addition to the taxation of stockholders who receive dividends
from the Fund) or as a registered closed-end investment company under the 1940 Act; (2) the Fund would not be able to liquidate portfolio
securities in an orderly manner and consistent with the Fund’s investment objectives and policies in order to repurchase Common
Stock; or (3) there is, in the Board’s judgment, any (a) material legal action or proceeding instituted or threatened
challenging such transactions or otherwise materially adversely affecting the Fund, (b) general suspension of or limitation on prices
for trading securities on the NYSE, (c) declaration of a banking moratorium by Federal or state authorities or any suspension of
payment by U.S. or New York banks, (d) material limitation affecting the Fund or the issuers of its portfolio securities by Federal
or state authorities on the extension of credit by lending institutions or on the exchange of foreign currency, (e) commencement
or continuation of war, armed hostilities or other international or national calamity directly or indirectly involving the United States
or (f) other event or condition which would have a material adverse effect (including any adverse tax effect) on the Fund or its
Common Stockholders if Common Stock were repurchased. Even in the absence of such conditions, the Board may decline to take action in
response to a discount from NAV of the Common Stock. The Board may in the future modify these conditions in light of experience.
The repurchase by the Fund of its Common Stock at prices below NAV
will result in an increase in the NAV of those Common Stock that remain outstanding. However, there can be no assurance that Common Stock
repurchases or tender offers at or below NAV will result in the Fund’s Common Stock trading at a price equal to their NAV.
In addition, a purchase by the Fund of its Common Stock will decrease
the Fund’s Managed Assets which would likely have the effect of increasing the Fund’s expense ratio. Any purchase by the Fund
of its Common Stock at a time when preferred stock are outstanding will increase the leverage applicable to the outstanding Common Stock
then remaining.
Before deciding whether to take any action if the Common Stock trade
below NAV, the Board would consider all relevant factors, including the extent and duration of the discount, the liquidity of the Fund’s
portfolio, the impact of any action that might be taken on the Fund or its Common Stockholders and market considerations. Based on these
considerations, even if the Fund’s Common Stock should trade at a discount, the Board may determine that, in the interest of the
Fund and its Common Stockholders, no action should be taken.
Tax matters
The following is a description of the material U.S. federal
income tax considerations affecting the Fund and the material U.S. federal income tax consequences of owning and disposing of Common
Stock. The discussion below provides general tax information related to an investment in Common Stock, but this discussion does not
purport to be a complete description of the U.S. federal income tax consequences of an investment in the Common Stock. It is based
on the Code and United States Treasury regulations thereunder and administrative pronouncements, all as of the date hereof, any of
which is subject to change, possibly with retroactive effect. In addition, it does not describe all of the tax consequences that may
be relevant in light of a Common Stockholder’s particular circumstances, including alternative minimum tax consequences and
tax consequences applicable to Common Stockholders subject to special tax rules, such as certain financial institutions; dealers or
traders in securities who use a mark-to-market method of tax accounting; persons holding Common Stock as part of a hedging
transaction, wash sale, conversion transaction or integrated transaction or persons entering into a constructive sale with respect
to the Common Stock; entities classified as partnerships or other pass-through entities for U.S. federal income tax purposes; real
estate investment trusts; insurance companies; U.S. holders (as defined below) whose functional currency is not the U.S. dollar; or
tax-exempt entities, including “individual retirement accounts” or “Roth IRAs.” Unless otherwise noted, the
following discussion applies only to a Common Stockholder that holds Common Stock as a capital asset and is a U.S. holder. A
“U.S. holder” is a holder who, for U.S. federal income tax purposes, is a beneficial owner of Common Stock and is
(i) an individual who is a citizen or resident of the United States; (ii) a corporation, or other entity taxable as a
corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia;
(iii) an estate the income of which is subject to U.S. federal income taxation regardless of its source; or (iv) a trust
if it (x) is subject to the primary supervision of a court within the United States and one or more U.S. persons have the
authority to control all substantial decisions of the trust or (y) has a valid election in effect under applicable United
States Treasury regulations to be treated as a U.S. person. Tax laws are complex and often change, and Common Stockholders should
consult their tax advisors about the U.S. federal, state, local or non-U.S. tax consequences of an investment in the Fund.
Taxation of the Fund
The Fund has elected to be treated as and intends to continue to qualify
in each taxable year as a regulated investment company (a “RIC”) under Subchapter M of the Code. To qualify as a RIC for any
taxable year, the Fund must, among other things, satisfy both an income test and an asset test for such taxable year. Specifically, (i) at
least 90% of the Fund’s gross income for such taxable year must consist of dividends; interest; payments with respect to certain
securities loans; gains from the sale or other disposition of stock, securities or foreign currencies; other income (including, but not
limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities
or currencies; and net income derived from interests in “qualified publicly traded partnerships” (such income, “Qualifying
RIC Income”) and (ii) the Fund’s holdings must be diversified so that, at the end of each quarter of such taxable year,
(a) at least 50% of the value of the Fund’s total assets is represented by cash and cash items, securities of other RICs, U.S.
government securities and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater
than 5% of the value of the Fund’s total assets and not greater than 10% of the outstanding voting securities of such issuer and
(b) not more than 25% of the value of the Fund’s total assets is invested (x) in securities (other than U.S. government
securities or securities of other RICs) of any one issuer or of two or more issuers that the Fund controls and that are engaged in the
same, similar or related trades or businesses or (y) in the securities of one or more “qualified publicly traded partnerships.”
The Fund’s share of income derived from a partnership other than a “qualified publicly traded partnership” will be treated
as Qualifying RIC Income only to the extent that such income would have constituted Qualifying RIC Income if derived directly by the Fund.
A “qualified publicly traded partnership” is generally defined as an entity that is treated as a partnership for U.S. federal
income tax purposes if (i) interests in such entity are traded on an established securities market or are readily tradable on a secondary
market or the substantial equivalent thereof and (ii) less than 90% of its gross income for the relevant taxable year consists of
Qualifying RIC Income. The Code provides that the Treasury Department may by regulation exclude from Qualifying RIC Income foreign currency
gains that are not directly related to the RIC’s principal business of investing in stock or securities (or options and futures
with respect to stock or securities). The Fund anticipates that, in general, its foreign currency gains will be directly related to its
principal business of investing in stock and securities.
As a RIC, the Fund generally is not subject to U.S. federal income
tax on its “investment company taxable income” and net capital gain (that is, the excess of net long-term capital gains over
net short-term capital losses) that it distributes (including amounts that are reinvested) to
its stockholders, provided that it distributes on a timely basis with respect to each taxable year at least 90% of its “investment
company taxable income” and its net tax-exempt interest income for such taxable year. In general, a RIC’s “investment
company taxable income” for any taxable year is its taxable income, determined without regard to net capital gain and with certain
other adjustments. The Fund distributes, and intends to continue to distribute, all of its “investment company taxable income,”
net tax-exempt interest income (if any) and net capital gain on an annual basis. Any taxable income, including any net capital gain, that
the Fund does not distribute to its stockholders in a timely manner will be subject to U.S. federal income tax at regular corporate rates.
If the Fund retains any net capital gains for reinvestment, it may
elect to treat such capital gains as having been distributed to its stockholders. If the Fund makes such an election, each stockholder
will be required to report its share of such undistributed net capital gain as long-term capital gain and will be entitled to claim its
share of the U.S. federal income taxes paid by the Fund on such undistributed net capital gain as a credit against its own U.S. federal
income tax liability, if any, and to claim a refund on a properly filed U.S. federal income tax return to the extent that the credit exceeds
such liability. In addition, each stockholder will be entitled to increase the adjusted tax basis of its Common Stock by the difference
between its share of such undistributed net capital gain and the related credit. There can be no assurance that the Fund will make this
election if it retains all or a portion of its net capital gain for a taxable year.
In determining its net capital gain, including in connection with determining
the amount available to support a capital gain dividend, its taxable income and its earnings and profits, the Fund generally may elect
to treat part or all of any post-October capital loss (defined as any net capital loss attributable to the portion, if any, of the
taxable year after October 31 or, if there is no such loss, the net long-term capital loss or net short-term capital loss attributable
to any such portion of the taxable year) or late-year ordinary loss (generally, the sum of its (i) net ordinary loss, if any, from
the sale, exchange or other taxable disposition of property, attributable to the portion, if any, of the taxable year after October 31,
and its (ii) other net ordinary loss, if any, attributable to the portion, if any, of the taxable year after December 31) as
if incurred in the succeeding taxable year.
The Fund is generally permitted to carry forward a net capital loss
in any taxable year to offset its own capital gains, if any. These amounts are available to be carried forward to offset future capital
gains to the extent permitted by the Code and applicable tax regulations. Any such loss carryforwards will retain their character as short-term
or long-term. In the event that the Fund were to experience an ownership change as defined under the Code, the capital loss carryforwards
and other favorable tax attributes of the Fund, if any, may be subject to limitation.
A RIC will be subject to a nondeductible 4% excise tax on certain amounts
that it fails to distribute during each calendar year. In order to avoid this excise tax, a RIC must distribute during each calendar year
an amount at least equal to the sum of (i) 98% of its ordinary taxable income (taking into account certain deferrals and elections)
for the calendar year; (ii) 98.2% of its capital gain net income for the one-year period ended on October 31 of the calendar
year and (iii) any ordinary income and capital gains for previous years that were not distributed during those years. For purposes
of determining whether the Fund has met this distribution requirement, (i) certain ordinary gains and losses that would otherwise
be taken into account for the portion of the calendar year after October 31 will be treated as arising on January 1 of the following
calendar year and (ii) the Fund will be deemed to have distributed any income or gains on which it paid U.S. federal income tax in
the taxable year ending within the relevant calendar year. The Fund intends generally to make distributions sufficient to permit it to
avoid the imposition of this excise tax, but there can be no assurance in this regard.
If the Fund failed to qualify as a RIC or failed to satisfy the 90%
distribution requirement in any taxable year, the Fund would be subject to U.S. federal income tax at regular corporate rates on its taxable
income, including its net capital gain, even if such income were distributed to its stockholders, and all distributions out of earnings
and profits would be taxed to stockholders as ordinary dividend income. Such distributions generally would be eligible for the dividends-received
deduction in the case of corporate stockholders and may also be eligible for treatment by non-corporate stockholders as “qualified
dividend income,” provided in each case that certain holding period and other requirements were satisfied. In addition, the Fund
could be required to recognize unrealized gains, pay taxes and make distributions (any of which could be subject to interest charges)
before re-qualifying for taxation as a RIC. If the Fund fails to satisfy the income test or diversification test described above, however,
it may in certain circumstances be able to avoid losing its status as a RIC by timely providing notice of such failure to the Internal
Revenue Service, curing such failure and possibly paying an additional tax.
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 Common Stockholders a deduction or
credit for foreign taxes paid by the Fund. In such a case, Common Stockholders will include in gross income from foreign sources their
pro rata shares of such taxes. A Common Stockholder’s ability to claim an offsetting foreign tax credit or deduction in respect
of such foreign taxes is subject to certain conditions and limitations imposed by the Code, which may result in the Common Stockholder’s
not receiving a full credit or deduction (if any) for the amount of such taxes. Generally, under U.S. law, capital gains realized by U.S.
residents are treated as U.S. source income, however, under certain circumstances, capital gains realized by U.S. residents that are taxed
in India may be treated as foreign source income. Common Stockholders 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,
Common Stockholders 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 Common Stockholders foreign tax credits or deductions, tax-exempt Common Stockholders and those who invest
in the Fund through tax-advantaged accounts such as individual retirement accounts will not benefit from any such tax credit or deduction.
Common Stockholders should consult their own tax advisors with respect to the foregoing rules.
The Fund may invest in stocks of foreign companies that are classified
under the Code as passive foreign investment companies (“PFICs”). In general, a foreign company is classified as a PFIC if
at least 50% of its assets constitute investment-type assets or 75% or more of its gross income is investment-type income. In general,
under the PFIC rules, an “excess distribution” received with respect to PFIC stock is treated as having been realized ratably
over the period during which the Fund held the PFIC stock. The Fund will be subject to tax on the portion, if any, of the excess distribution
that is allocated to its holding period in prior taxable years (and an interest factor will be added to the tax, as if the tax had actually
been payable in such prior taxable years) even though the Fund distributes the corresponding income to Common Stockholders. Excess distributions
include any gain from the sale of PFIC stock as well as certain distributions from a PFIC. All excess distributions are taxable as ordinary
income.
The Fund may be eligible to elect alternative tax treatment with respect
to PFIC stock. Under such an election, the Fund generally would be required to include in its gross income its share of the earnings of
a PFIC on a current basis, regardless of whether any distributions are received from the PFIC. If this election is made, the special rules,
discussed above, relating to the taxation of excess distributions, would not apply. Treasury regulations generally treat income inclusion
from a PFIC with respect to which the Fund has made such an election as Qualifying RIC Income if (i) there is a current distribution out
of the earnings and profits of the PFIC that are attributable to such income inclusion or (ii) such income inclusion is derived with respect
to the Fund’s business of investing in stock, securities, or currencies.
Alternatively, the Fund may be able to elect to mark to market its
PFIC stock, resulting in any unrealized gains at year end being treated as though they were realized and reported as ordinary income.
Any mark-to-market losses and any loss from an actual disposition of the PFIC’s shares would be deductible as ordinary losses to
the extent of any net mark-to-market gains included in income in prior years with respect to stock in the same PFIC.
Because the application of the PFIC rules may affect, among other things,
the character of gains, the amount of gain or loss and the timing of the recognition of income with respect to PFIC stock, as well as
subject the Fund to tax on certain income from PFIC stock, the amount that must be distributed to Common Stockholders, and which will
be taxed to Common Stockholders as ordinary income or long-term capital gain, may be increased or decreased substantially as compared
to a fund that did not invest in PFIC stock.
Under Section 988 of the Code, gains or losses attributable to fluctuations
in exchange rates between the time the Fund accrues income or receivables or expenses or other liabilities denominated in a foreign currency
and the time the Fund actually collects such income or receivables or pays such liabilities are generally treated as ordinary income or
loss. Similarly, gains or losses on foreign currency, foreign currency forward contracts, certain foreign currency options or futures
contracts and the disposition of debt securities denominated in foreign currency, to the extent attributable to fluctuations in exchange
rates between the acquisition and disposition dates, are also treated as ordinary income or loss.
Furthermore, foreign exchange control regulations may restrict the
ability of the Fund to repatriate investment income or the proceeds of sales of securities. These restrictions and limitations may limit
the Fund’s ability to make sufficient distributions to satisfy the 90% distribution requirement and avoid the 4% excise tax.
If the Fund utilizes leverage through the issuance of preferred stock
or borrowings, it will be prohibited from declaring a distribution or dividend if it would fail the applicable asset coverage test(s) under
the 1940 Act after the payment of such distribution or dividend. In addition, certain covenants in credit facilities or indentures may
impose greater restrictions on the Fund’s ability to declare and pay dividends on Common Stock. See “Investment objectives
and principal investment strategy.” Limits on the Fund’s ability to pay dividends on Common Stock may prevent the Fund from
meeting the distribution requirements described above, and may therefore jeopardize the Fund’s qualification for taxation as a RIC
or subject the Fund to income or excise tax on undistributed income. The Fund will endeavor to avoid restrictions on its ability to make
dividend payments. If the Fund is precluded from making distributions on the Common Stock because of any applicable asset coverage requirements,
the terms of the preferred stock (if any) may provide that any amounts so precluded from being distributed, but required to be distributed
for the Fund to meet the distribution requirements for qualification as a RIC, will be paid to the holders of the preferred stock as a
special distribution. This distribution can be expected to decrease the amount that holders of preferred stock would be entitled to receive
upon redemption or liquidation of the stock.
The Fund may invest in certain options, futures or forward currency
contracts to hedge the Fund’s portfolio or for any other permissible purposes consistent with the Fund’s investment objective.
If the Fund makes these investments, it could be required to mark-to-market these contracts and realize any unrealized gains and losses
at its fiscal year end even though it continues to hold the contracts. Under these rules, gains or losses on the contracts generally would
be treated as 60% long-term and 40% short-term gains or losses, but gains or losses on certain foreign currency contracts would be treated
as ordinary income or losses. In determining its net income for excise tax purposes, the Fund also would be required to mark-to-market
these contracts annually as of October 31 (for capital gain net income and ordinary income arising from certain foreign currency
contracts), and to realize and distribute any resulting income and gains.
The Fund’s entry into a short sale transaction or an option or
other contract could be treated as the “constructive sale” of an “appreciated financial position,” causing it
to realize gain, but not loss, on the position.
Some of the investments that the Fund is expected to make, such as investments in debt securities that are treated as issued with original
issue discount, will cause the Fund to recognize income or gain for U.S. federal income tax purposes prior to the receipt of any corresponding
cash or other property. Because the distribution requirements described above will apply to this income, the Fund may be required to borrow
money or dispose of other securities at disadvantageous times in order to make the relevant distributions.
Certain of the Fund’s investments are expected to be subject
to special U.S. federal income tax provisions that may, among other things, (i) disallow, suspend or otherwise limit the allowance
of certain losses or deductions; (ii) convert lower-taxed long-term capital gain or qualified dividend income into higher-taxed short-term
capital gain or ordinary income; (iii) convert an ordinary loss or a deduction into a capital loss, the deductibility of which is
more limited; (iv) adversely affect when a purchase or sale of stock or securities is deemed to occur; (v) adversely alter the
intended characterization of certain complex financial transactions; (vi) cause the Fund to recognize income or gain without a corresponding
receipt of cash and (vii) produce income that will not constitute Qualifying RIC Income. The application of these rules could
cause the Fund to be subject to U.S. federal income tax or the nondeductible 4% excise tax and, under certain circumstances, could affect
the Fund’s status as a RIC. The Fund monitors its investments and may make certain tax elections in order to mitigate the effect
of these provisions. Moreover, there may be uncertainty as to the appropriate treatment of certain of the Fund’s investments for
U.S. federal income tax purposes. In particular, the U.S. federal income tax treatment of investments in debt securities that are rated
below investment grade is uncertain in various respects.
Distributions
Distributions of the Fund’s ordinary income and net short-term
capital gains will, except as described below with respect to distributions of “qualified dividend income,” generally be taxable
to the Common Stockholders as ordinary income to the extent such distributions are paid out of the Fund’s current or accumulated
earnings and profits, as determined for U.S. federal income tax purposes. Distributions (or deemed distributions, as described above),
if any, of net capital gains will be taxable as long-term capital gains, regardless of the length of time the Common Stockholder has owned
Common Stock. The ultimate tax characterization of the Fund’s distributions made in a taxable year cannot be determined until after
the end of the taxable year. As a result, there is a possibility that the Fund may make total distributions during a taxable year in an
amount that exceeds the current and accumulated earnings and profits of the Fund. A distribution of an amount in excess of the Fund’s
current and accumulated earnings and profits will be treated by a Common Stockholder as a return of capital that will be applied against
and reduce the Common Stockholder’s basis in its Common Stock. To the extent that the amount of any such distribution exceeds the
Common Stockholder’s basis in its Common Stock, the excess will be treated as gain from a sale or exchange of the Common Stock.
If the Fund issues preferred stock, its earnings and profits must be allocated first to such preferred stock, and then to the Common Stock,
in each case on a pro rata basis.
Certain of the Fund’s investments will be subject to special U.S. federal
income tax provisions that may affect the character, increase the amount and/or accelerate the timing of income earned by the Fund.
Dividends distributed by the Fund to a corporate Common Stockholder
will qualify for the dividends-received deduction only to the extent that the dividends consist of distributions of qualifying dividends
received by the Fund. In addition, any such dividends-received deduction will be disallowed or reduced if the corporate Common Stockholder
fails to satisfy certain requirements, including a holding period requirement, with respect to its Common Stock. Given the Fund’s investment strategy, it is not expected that a large portion of the distributions made by the Fund will be eligible
for the dividends-received deduction in the case of corporate Common Stockholders.
Distributions of “qualified dividend income” to an individual or other non-corporate Common Stockholder made or deemed made
by the Fund will be subject to tax at reduced maximum rates (depending on whether the Common Stockholder’s income exceeds certain
threshold amounts), provided that the Common Stockholder meets certain holding period and other requirements with respect to its Common
Stock. “Qualified dividend income” generally includes dividends from domestic corporations and dividends from foreign corporations
that meet certain specified criteria. Dividends from PFICs are not eligible to be treated as qualified dividend income. Income dividends
earned by the Funds on non-qualified foreign securities will continue to be taxed at the higher ordinary income tax rate.
Distributions will be treated in the manner described above regardless
of whether such distributions are paid in cash or invested in additional Common Stock. If the Common Stock are trading
below NAV, Common Stockholders receiving distributions in the form of additional Common Stock will be treated as receiving a distribution
in the amount of cash that they would have received if they had elected to receive the distribution in cash. If the Fund issues additional
Common Stock with a fair market value equal to or greater than NAV, however, Common Stockholders will be treated as receiving a distribution
in the amount of the fair market value of the distributed Common Stock.
Although dividends generally will be treated as distributed when paid,
dividends declared in October, November or December, payable to Common Stockholders of record on a specified date in one of those
months, and paid during the following January, will be treated as having been distributed by the Fund (and received by Common Stockholders)
on December 31 of the year in which declared.
The Internal Revenue Service currently requires that a RIC that has
two or more classes of stock allocate to each class proportionate amounts of each type of its income (such as ordinary income, capital
gains and dividends qualifying for the dividends-received deduction) based upon the percentage of total dividends paid to each class for
the tax year. Accordingly, if the Fund issues preferred stock, the Fund will allocate capital gain dividends and dividends qualifying
for the dividends-received deduction, if any, between its Common Stock and shares of preferred stock in proportion to the total dividends
paid to each class with respect to such tax year.
Common Stockholders will be notified annually as to the U.S. federal
tax status of distributions, and Common Stockholders receiving distributions in the form of additional Common Stock will receive a report
as to the NAV of those Common Stock.
Medicare Tax
An additional 3.8% Medicare tax is imposed on certain net investment
income (including ordinary dividends and capital gain distributions received from the Fund and net gains from redemptions or other taxable
dispositions of Fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified adjusted gross
income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust) exceed certain
threshold amounts.
Sale or Exchange of Common Stock
A Common Stockholder may recognize capital gain or loss on the sale
or other disposition of Common Stock. Different tax consequences may apply for tendering and non-tendering Common Stockholders in connection
with a repurchase offer. For example, if a Common Stockholder does not tender all of his or her Common Stock, such repurchase may not
be treated as a sale or exchange for U.S. federal income tax purposes and may result in deemed distributions to non-tendering Common Stockholders.
On the other hand, Common Stockholders holding Common Stock as capital assets who tender all of their Common Stock (including Common Stock
deemed owned by Common Stockholders under constructive ownership rules) will be treated as having sold their Common Stock and generally
will recognize capital gain or loss. The amount of the gain or loss will be equal to the difference between the amount realized and the
Common Stockholder’s adjusted tax basis in the relevant Common Stock. Such gain or loss generally will be a long-term gain or loss
if the Common Stockholder’s holding period for such Common Stock is more than one (1) year. Under current law, net capital
gains recognized by non-corporate Common Stockholders are generally subject to reduced maximum rates, depending on whether the Common
Stockholder’s income exceeds certain threshold amounts.
Losses realized by a Common Stockholder on the sale or exchange of
Common Stock held for six months or less will be treated as long-term capital losses to the extent of any distribution of long-term capital
gain received (or deemed received, as discussed above) with respect to such Common Stock. In addition, no loss will be allowed on a sale
or other disposition of Common Stock if the Common Stockholder acquires, or enters into a contract or
option to acquire, Common Stock within 30 days before or after the disposition. In such a case, the basis of the securities acquired will
be adjusted to reflect the disallowed loss.
Reporting of adjusted cost basis information for covered securities,
which generally include shares of a regulated investment company acquired after January 1, 2012, is required to the Internal Revenue
Service and to taxpayers. Common Stockholders should contact their financial intermediaries with respect to reporting of cost basis and
available elections for their accounts.
Tax Shelter Reporting Regulations
Under U.S. Treasury regulations, if a Common Stockholder recognizes
losses with respect to Common Stock of $2 million or more for an individual Common Stockholder or $10 million or more for a corporate
Common Stockholder, the Common Stockholder must file with the Internal Revenue Service a disclosure statement on Internal Revenue Service
Form 8886. Direct owners of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance,
stockholders of a RIC are not excepted. Future guidance may extend the current exception from this reporting requirement to stockholders
of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the
taxpayer’s treatment of the loss is proper. Stockholders should consult their tax advisors to determine the applicability of these
regulations in light of their individual circumstances.
Backup Withholding and Information Reporting
Information returns will be filed with the Internal Revenue Service
in connection with payments on the Common Stock and the proceeds from a sale or other disposition of the Common Stock. A Common Stockholder
will be subject to backup withholding (currently, at a rate of 24%) on all such payments if it fails to provide the payor with its correct
taxpayer identification number (generally on an Internal Revenue Service Form W-9) and to make required certifications or otherwise
establish an exemption from backup withholding. Corporate Common Stockholders and certain other Common Stockholders generally are exempt
from backup withholding. Backup withholding is not an additional tax. Any amounts withheld pursuant to these rules may be credited
against the applicable Common Stockholder’s U.S. federal income tax liability, provided the required information is timely furnished
to the Internal Revenue Service.
Non-U.S. Common Stockholders
The U.S. federal income taxation of a Common Stockholder that is a
nonresident alien individual, a foreign trust or estate or a foreign corporation, as defined for U.S. federal income tax purposes (a “non-U.S.
Common Stockholder”) depends on whether the income that the Common Stockholder derives from the Fund is “effectively connected”
with a U.S. trade or business carried on by the Common Stockholder.
If the income that a non-U.S. Common Stockholder derives from the
Fund is not “effectively connected” with a U.S. trade or business carried on by such non-U.S. Common Stockholder, distributions
of “investment company taxable income” will generally be subject to a U.S. federal withholding tax at a rate of 30% (or a
lower rate under an applicable treaty). Furthermore, non-U.S. Common Stockholders may be subject to U.S. tax at the rate of 30% (or lower
treaty rate) of the income resulting from the Fund’s election to treat any foreign taxes paid by it as paid by Common Stockholders,
but will not be able to claim a credit or deduction for the foreign taxes as having been paid by them unless they file U.S. tax returns.
Properly reported dividends received by a nonresident alien or foreign
entity are generally exempt from U.S. federal withholding tax when they (a) are paid in respect of the Fund’s “qualified
net interest income” (generally, the Fund’s U.S. source interest income, reduced by expenses that are allocable to such income),
or (b) are paid in connection with the Fund’s “qualified short-term capital gains” (generally, the excess of the
Fund’s net short-term capital gain over the Fund’s long-term capital loss for such taxable year). However, depending on the
circumstances, the Fund may report all, some or none of the Fund’s potentially eligible dividends as such qualified net interest
income or as qualified short-term capital gains, and a portion of the Fund’s distributions (e.g., interest from non-U.S. sources
or any foreign currency gains) would be ineligible for this potential exemption from withholding.
A non-U.S. Common Stockholder whose income from the Fund is not “effectively
connected” with a U.S. trade or business (or, if an income tax treaty is applicable, is not attributable to a permanent establishment
maintained by the non-U.S. Common Stockholder in the United States) will generally be exempt from U.S. federal income tax on capital gain
dividends, any amounts retained by the Fund that are reported as undistributed capital gains and any gains realized upon the sale or exchange
of shares of the Fund. If, however, such a non-U.S. Common Stockholder is a nonresident alien individual and is physically present in
the United States for 183 days or more during the taxable year and meets certain other requirements, such capital gain dividends, undistributed
capital gains and gains from the sale or exchange of Common Stock will be subject to U.S. tax.
If the income from the Fund is “effectively connected”
with a U.S. trade or business carried on by a non-U.S. Common Stockholder (and, if an income tax treaty is applicable, is attributable
to a permanent establishment maintained by the non-U.S. Common Stockholder in the United States), any distributions of “investment
company taxable income,” any capital gain dividends, any amounts retained by the Fund that are reported as undistributed capital
gains and any gains realized upon the sale or exchange of shares of the Fund will be subject to U.S. income tax, on a net income basis,
in the same manner, and at the graduated rates applicable to, U.S. persons. If such a non-U.S. Common Stockholder is a corporation, it
may also be subject to the U.S. branch profits tax.
A non-U.S. Common Stockholder may be subject
to backup withholding on net capital gain distributions that are otherwise exempt from withholding tax or on distributions that would
otherwise be taxable at a reduced treaty rate if such Common Stockholder does not certify its non-U.S. status under penalties of perjury
or otherwise establish an exemption.
A non-U.S. Stockholder may also be subject to U.S. estate tax with
respect to their Fund shares.
The tax consequences to a non-U.S. Common Stockholder entitled to claim
the benefits of an applicable tax treaty may differ from those described herein. Non-U.S. Common Stockholders are advised to consult their
tax advisors with respect to the particular tax consequences to them of an investment in the Fund.
In addition, the Fund is required to withhold U.S. tax (at a 30% rate)
on payments of taxable dividends made to certain non-U.S. entities that fail to comply (or be deemed compliant) with extensive reporting
and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. To
avoid withholding, foreign financial institutions will need to (i) enter into agreements with the IRS that state that they will provide
the IRS information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders, comply
with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with respect
to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions or to account
holders who fail to provide the required information, and determine certain other information as to their account holders, or (ii) in
the event that an applicable intergovernmental agreement and implementing legislation are adopted, provide local revenue authorities with
similar account holder information. Other foreign entities will need to either provide the name, address, and taxpayer identification
number of each substantial U.S. owner or certifications of no substantial U.S. ownership unless certain exceptions apply. Under some circumstances,
a foreign stockholder may be eligible for refunds or credits of such taxes.
Other Taxes
Common Stockholders may be subject to state, local and non U.S. taxes
on their Fund distributions. Common Stockholders are advised to consult their tax advisors with respect to the particular tax consequences
to them of an investment in the Fund.
Proxy voting policy and proxy voting record
The Board has delegated the day-to-day responsibility to the Investment
Manager to vote the Fund’s proxies. Proxies are voted by the Investment Manager pursuant to the Board approved proxy guidelines,
a copy of which as currently in effect as of the date of this SAI is attached hereto as Appendix A. Also
attached hereto in Appendix A is the Investment Manager’s Listed Company Stewardship Guidelines, which among other things, expands
upon how the Investment Manager approaches environmental, social and governance issues when engaging with company management and voting
proxies.
Information on how the Fund voted proxies (if any) relating to portfolio
securities during the most recent 12-month period ending June 30 is available: (i) upon request and without charge by calling
Investor Relations toll-free at 1-800-522-5465, or (ii) on the SEC’s website at http://www.sec.gov.
Incorporation by reference
This SAI is part of a Registration
Statement that the Fund has filed with the SEC. The Fund is
permitted to “incorporate by reference” the information that it files with the SEC, which means that the Fund can
disclose important information to you by referring you to those documents. The information incorporated by reference is an important part
of this SAI, and later information that the Fund files with the SEC will automatically update
and supersede this information.
The documents listed below,
and any reports and other documents subsequently filed with the SEC pursuant to Rule 30(b)(2) under the 1940 Act and Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act, prior to the termination of the offering, are incorporated by reference into this
SAI and deemed to be part of this SAI from the date of the filing of such reports and documents:
|
● |
[the Fund’s Annual Report on Form N-CSR for the fiscal year ended December 31, 2023, filed with the SEC
on [ ], 2024 (“Annual Report”)]; |
|
● |
the Fund’s definitive proxy statement on Schedule
14A for our 2023 annual meeting of stockholders, filed with the SEC on April 14, 2023 (“Proxy Statement”);
and |
To obtain copies of these filings,
see “Additional Information.”
Financial Statements
The Fund’s financial statements for the fiscal year ended December 31,
2023, together with the report thereon of [ ], an independent registered public accounting firm, given on the authority of said firm
as experts in auditing and accounting, are incorporated
in this SAI by reference to the Fund’s [December 31, 2023 Annual Report]. The address of [ ] is [ ]. [ ] provides audit services, tax return preparation, and consultation with respect to the preparation
of filings with the SEC.
A copy of the Fund’s [2023 Annual Report] and June 30, 2023 Semi-Annual Report is available at the SEC’s website at www.sec.gov.
Legal counsel
Counsel to the Fund is Dechert LLP.
Additional information
The Prospectus and this SAI do not contain all of the information set
forth in the Registration Statement, including any exhibits and schedules thereto. The Fund
will provide without charge to each person, including any beneficial owner, to whom this SAI is
delivered, upon written or oral request, a copy of any and all of the information that has been incorporated by reference in this SAI
or the Prospectus or any accompanying Prospectus Supplement. You may request such information by calling Investor Relations
toll-free at 1-800-522-5465, or you may obtain a copy (and other information regarding the Fund) from the SEC’s website (www.sec.gov).
Free copies of the Fund’s Prospectus, SAI and any incorporated information will also be available from the Fund’s website
at https://www.abrdnifn.com/. Information contained on the Fund’s website is not incorporated
by reference into this SAI, the Prospectus or any Prospectus Supplement and should not be considered to be part of this SAI, the Prospectus
or any Prospectus Supplement.
Appendix A—Proxy voting guidelines
U.S. Registered Advisers (the “abrdn
Advisers”)
Proxy Voting Guidelines
Effective as of October 26, 2022
Rule 206(4)-6 under the Investment Advisers
Act of 1940, as amended (the “Advisers Act”) requires the abrdn Advisers to vote proxies in a manner consistent with clients’
best interest and must not place its interests above those of its clients when doing so. It requires the abrdn Advisers to: (i) adopt
and implement written policies and procedures that are reasonably designed to ensure that the abrdn Advisers vote proxies in the best
interest of the clients, and (ii) to disclose to the clients how they may obtain information on how the abrdn Advisers voted proxies.
In addition, Rule 204-2 requires the abrdn Advisers to keep records of proxy voting and client requests for information.
As registered investment advisers, the abrdn Advisers
have an obligation to vote proxies with respect to securities held in its client portfolios in the best interests of the clients for which
it has proxy voting authority.
The abrdn Advisers are committed to exercising
responsible ownership with a conviction that companies adopting best practices in corporate governance will be more successful in their
core activities and deliver enhanced returns to stockholders.
The abrdn Advisers have adopted a proxy voting
policy. The proxy voting policy is designed and implemented in a way that is reasonably expected to ensure that proxies are voted in the
best interests of clients.
Resolutions are analysed by a member of our regional
investment teams or our Active Ownership Team and votes instructed following consideration of our policies, our views of the company and
our investment insights. To enhance our analysis, we will often engage with a company prior to voting to understand additional context
and explanations, particularly where there is a deviation from what we believe to be best practice.
Where contentious issues arise in relation to
motions put before a stockholders’ meeting, abrdn Advisers will usually contact the management of the company to exchange views
and give management the opportunity to articulate its position. The long-term nature of the relationships that we develop with investee
company boards should enable us to deal with any concerns that we may have over strategy, the management of risk or governance practices
directly with the chairman or senior independent director. In circumstances where this approach is unsuccessful, abrdn Advisers are prepared
to escalate their intervention by expressing their concerns through the company’s advisers, through interaction with other stockholders
or attending and speaking at General Meetings.
In managing third party money on behalf of clients,
there are a limited number of situations where potential conflicts of interest could arise in the context of proxy voting. One case is
where funds are invested in companies that are either clients or related parties of clients. Another case is where one fund managed by
abrdn invests in other funds managed by abrdn.
For cases involving potential conflicts of interest,
abrdn Advisers have implemented procedures to ensure the appropriate handling of proxy voting decisions. The guiding principle of abrdn
Advisers’ conflicts of interest policy is simple – to exercise our right to vote in the best interests of the clients on whose
behalf we are managing funds.
We employ ISS as a service provider to facilitate
electronic voting. We require ISS to provide recommendations based on our own set of parameters to tailored abrdn’s assessment and
approach but remain conscious always that all voting decisions are our own on behalf of our clients. We consider ISS’s recommendations
and those based on our custom parameters as input to our voting decisions. We make use of the ISS standard research and recommendations
and those based on our own custom policy as input to our voting decisions. Where our analysts make a voting decision that is different
from the recommendations based on our custom policy they will provide a rationale for such decisions which will be made publicly available
in our voting disclosures.
In order to make proxy voting decisions, an abrdn
analyst will assess the resolutions at general meetings in our active investment portfolios. This analysis will be based on our knowledge
of the company, but will also make use of the custom and standard recommendations provided by ISS as described above. The product of this
analysis will be final voting decision instructed through ISS applied to all funds for which abrdn have been appointed to vote. For funds
managed by a sub-adviser, we may delegate to the sub-adviser the authority to vote proxies; however, the sub-adviser will be required
to either follow our policies and procedures or to demonstrate that their policies and procedures are consistent with ours, or otherwise
implemented in the best interest of clients.
There may be certain circumstances where abrdn
may take a more limited role in voting proxies. We will not vote proxies for client accounts in which the client contract specifies that
abrdn will not vote. We may abstain from voting a client proxy if the voting is uneconomic or otherwise not in clients’ best interests.
For companies held only in passively managed portfolios the abrdn custom recommendations provided by ISS will be used to automatically
apply our voting approach; we have scope to intervene to test that this delivers appropriate results, and will on occasions intrude to
apply a vote more fully in clients’ best interests. If voting securities are part of a securities lending program, we may be unable
to vote while the securities are on loan. However, we have the ability to recall shares on loan or to restrict lending when required,
in order to ensure all shares have voted. In addition, certain jurisdictions may impose share-blocking restrictions at various times which
may prevent abrdn from exercising our voting authority.
We recognize that there may be situations in which
we vote at a company meeting where we encounter a conflict of interest. Such situations include:
| ● | where a portfolio manager owns the holding in a personal account |
| ● | An investee company that is also a segregated client |
| ● | An investee company where an executive director or officer of our company is also a director of that company |
| ● | An investee company where an employee of abrdn is a director of that company |
| ● | A significant distributor of our products |
| ● | Any other companies which may be relevant from time to time |
In order to manage such conflicts of interests,
we have established procedures to escalate decision-making so as to ensure that our voting decisions are based on our clients’ best
interests and are not impacted by any conflict.
The implementation of this policy, along with
conflicts of interest, will be reviewed periodically by the Active Ownership team. abrdn’s Global ESG Principles & Voting
Policies are published on our website.
To the extent that an abrdn Adviser may rely on
sub-advisers, whether affiliated or unaffiliated, to manage any client portfolio on a discretionary basis, the abrdn Adviser may delegate
responsibility for voting proxies to the sub-adviser. However, such sub-advisers will be required either to follow these Policies and
Procedures or to demonstrate that their proxy voting policies and procedures are consistent with these Policies and Procedures or otherwise
implemented in the best interests of the abrdn Advisers’ clients. Clients that have not granted abrdn voting authority over securities
held in their accounts will receive their proxies in accordance with the arrangements they have made with their service providers.
As disclosed in Part 2A of each abrdn Adviser’s
Form ADV, a client may obtain information on how its proxies were voted by requesting such information from its abrdn Adviser. Unless
specifically requested by a client in writing, and other than as required for the Funds, the abrdn Advisers do not generally disclose
client-specific proxy votes to third parties.
Our proxy voting records are available per request
and on the SEC’s website at SEC.gov.
On occasions when it is deemed to be a fiduciary
for an ERISA client’s assets, abrdn will vote the Plan assets in accordance with abrdn’s Proxy Voting Policy and in line with
DOL guidance.
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img001.jpg)
Contents
Introduction |
3 |
|
Dividends |
14 |
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img002.jpg) |
Our
expectations |
3 |
|
Share
Capital |
14 |
Our
approach to stewardship |
3 |
|
Share
Issuance |
15 |
Engagement |
4 |
|
Buyback |
15 |
Proxy
Voting |
5 |
|
Related
Party Transactions |
15 |
Voting
Process |
5 |
|
Article/Bylaw
amendments |
15 |
Governance |
6 |
|
Anti-Takeover
Defences |
15 |
Strategy |
7 |
|
Voting
Rights |
16 |
Board
of Directors |
7 |
|
General
Meetings |
16 |
Board
Composition |
7 |
|
Sustainability |
17 |
Leadership |
7 |
|
The
Environment |
18 |
Independence |
8 |
|
Labour
and employment |
19 |
Succession
Planning & Refreshment |
8 |
|
Human
rights |
19 |
Diversity |
8 |
|
Business
ethics |
20 |
Directors'
Time Commitment |
9 |
|
Environmental &
Social Resolutions |
21 |
Board
Committees |
9 |
|
Management
Proposals |
22 |
Director
Accountability |
10 |
|
Shareholder
Proposals |
22 |
Reporting |
11 |
|
Climate
Change |
23 |
Political
Donations & Lobbying |
11 |
|
Diversity &
Inclusion |
23 |
Risk &
Audit |
12 |
|
Human
Rights |
24 |
Remuneration |
12 |
|
Corporate
Lobbying & Political Contributions |
24 |
Investor
Rights |
14 |
|
Nuclear
Energy |
24 |
Corporate
Transactions |
14 |
|
|
|
Listed Company ESG Principles & Voting Policies | 2 |
Introduction
Active
Ownership and Environmental, Social & Governance (ESG) considerations are a driver of our investment process, our investment activity,
our client journey and our corporate influence.
Through
engagement with the companies in which we invest, and by exercising votes on behalf of our clients, we seek to improve the financial
resilience and performance of our clients’ investments. Where we believe change is needed , we endeavour to catalyse this through
our stewardship capabilities.
|
Our
expectations
As
global investors, we are particularly aware that ESG structures and frameworks vary across regions. Furthermore, what we expect of the
companies in which we invest varies between different stages of business development and the underlying history and nature of the company
in question. We seek to understand each company's individual circumstances and so evaluate how it can best be governed and overseen.
As such, we strive to apply the principles and policies set out on these pages in response to the needs of that individual company
at that particular time. Our heritage as a predominantly active fund manager helps drive this bespoke approach to understanding good
governance and risk management.
We
have a clear perception of what we consider to be best practice globally - as set out in this document. However we will reflect the nature
of the business, our close understanding of individual companies and regional considerations, where
appropriate, in our approach to applying these policies, which are not exhaustive.
This
document has received approval from the Head of Public Markets and the Investment Vector's Chief Sustainability Officer following consultation
with various internal stakeholders.
Our
approach to stewardship
We
seek to integrate and appraise environmental, social and governance factors in our investment process. Our aim is to generate the best
long- term outcomes for our clients and we will actively take steps as stewards and owners to protect and enhance the value of our clients'
assets.
Stewardship
is a reflection of this bespoke approach to good governance and risk management. We seek to understand each company's specific approach
to governance, how value is created through business success and how investors' interests are protected through the management of risks
that materially impact business success. This requires us to play our part in the governance process by being active stewards of companies,
involved in dialogue with management and non-executive directors where appropriate, understanding the material risks and opportunities
- including those relating to environmental and social factors and helping to shape the future success of the business.
|
Listed Company ESG Principles & Voting Policies | 3 |
We
will:
▪ | Take
into consideration, in our investment process, the policies and practices on environmental,
social and governance matters of the companies in which we invest. |
| |
▪ | Seek
to enhance long-term shareholder value through constructive engagement with the companies
in which we invest. |
| |
▪ | Actively
engage with the companies and assets in which we invest where we believe we can influence
or gain insight. |
| |
▪ |
Seek to exercise voting rights,
where held, in a manner consistent with our clients’ long-term best interests. |
|
|
▪ |
Seek to influence the development
of high standards of corporate governance and corporate responsibility in relation to environmental and social factors for the benefit
of our clients. |
|
|
▪ |
Communicate our Listed Company
ESG Principles and Voting Policies to clients, companies and other interested parties. |
|
|
▪ |
Be
accountable to clients within the constraints of professional confidentiality and legislative and regulatory requirements. |
|
|
▪ |
Be transparent in reporting
our engagement and voting activities. |
abrdn
is committed to exercising responsible ownership with a conviction that companies adopting improving practices in corporate governance
and risk management will be more successful in their core activities and deliver enhanced returns to shareholders. As owners of companies,
the process of stewardship is a natural part of our investment approach as we seek to benefit from their long-term success on our clients’
behalf.
Engagement
It
is a central tenet of our active investment approach that we strive to meet with the management and directors of our investee companies
on a regular basis. The discussions we have cover a wide range of topics, including: strategic, operational, and ESG issues and consider
the long-term drivers of value. Engagement with companies on ESG risks and opportunities is a fundamental part of our investment process.
It is a process by which we can discuss how a company identifies, prioritises and mitigates its key risks and optimises its most significant
opportunities. As such, we regard engagement as:
▪ |
Important
to understanding investee companies as a whole. |
▪ |
Helpful
when conducting proper ESG analysis. |
▪ |
Useful
to maintaining open dialogue and solid relationships with companies. |
▪ |
An opportunity
to inflect positive change on a company's holistic risk management programme - be active with our holdings rather than activist. |
Listed Company ESG Principles & Voting Policies | 4 |
Proxy
Voting
Proxy
voting is an integral part of our active stewardship approach and we seek to exercise voting rights in a manner in line with our clients'
best interests. We seek to ensure that voting reflects our understanding of the companies in which we invest on behalf of our clients.
We believe that voting is a vital mechanism for holding boards and management teams to account, and is an important tool for escalation
and shareholder action.
This
document includes our process and overarching policy guidelines which we apply when voting at general meetings. These policies are
not exhaustive and we evaluate our voting on a case by case basis. As a global investment firm we recognise the importance of
adopting a regional approach, taking into account differing and developing market practices. Where a policy is specific to one
region this is denoted.
We
endeavour to engage with companies regarding our voting decisions to maintain a dialogue on matters of concern.
Voting
Process
In
line with our active ownership approach, we review the majority of general meeting agendas convened by companies which are held in our
active equity portfolios. Analysis is undertaken by a member of our regional investment teams or our Active Ownership team and votes
instructed following consideration of our policies, our views of the company and our investment insights. To enhance our analysis we
may engage with a company prior to voting to understand additional context and explanations, particularly where there is deviation from
what we believe to be best practice.
To
supplement our own analysis we make use of the benchmark research and recommendations provided by ISS, a provider of proxy voting services.
In the UK we also make use of the Investment Association's (IA) Institutional
Voting Information Service. We have implemented regional
voting policy guidelines with ISS which ISS applies to all meetings in order to produce customised vote recommendations. These custom
recommendations help identify resolutions which deviate from our expectations. They are also used to determine votes where a company
is held only in passive funds. Within our custom policies, however, we do specify numerous resolutions which should be referred to us
for active review. For example we will analyse all proposals marked by ISS as environmental or social proposals.
While
it is most common for us to vote in line with a board's voting recommendation we will vote our clients' shares against resolutions which
are not consistent with their best interests. We may also vote against resolutions which conflict with local governance guidelines,
such as the IA in the UK. Although we seek to vote either in favour or against a resolution we do make use of an abstain vote where this
is considered appropriate. For example we may use an abstention to acknowledge some improvement, but as a means to reserve our position
in expectation that further improvement is needed before we can vote in favour.
Where
we vote against a resolution we endeavour to inform companies of our rationale.
In
exceptional circumstances we may attend and speak at a shareholder meeting to reinforce our views to the company's board.
We
endeavour to vote all shares for which we have voting authority. We may not vote when there are obstacles to do so, for example those
impacting liquidity, such as share-blocking, or where there is a significant conflict of interest. We use the voting platform of ISS
to instruct our votes. Where we lend stock on behalf of clients, and subject to the terms of client agreements, we hold the right
to recall shares where it is in clients' interests and we take the view that it will impact the final vote to maintain full voting weight
on a particular meeting or resolution.
Our
votes are disclosed publicly on our website one day after a general meeting has taken place.
Listed Company ESG Principles & Voting Policies | 5 |
Listed Company ESG Principles & Voting Policies | 6 |
Governance |
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img008.jpg) |
Strategy
We
invest in companies to create the best outcome for our clients. Companies must be clear about the drivers of their business success
and their strategy for maintaining and enhancing it. Investment is a forward-looking process; we seek to understand the opportunity
for a business and its scope for future value-creation over the long term. In order to do this, we need clarity on past
business delivery and its drivers, and on the effective track record of management; we require honest and open reporting to build
confidence in that track record. We seek confidence that companies and their management can maintain their competitive positioning
and operational performance and subsequently enhance returns for investors. A clear strategy and clarity about the drivers of
operational success provides the lens through which we will consider most corporate issues, not least assessing performance and risk
management.
▪ |
We will consider voting against executive or non-executive
directors if we have serious concerns regarding the oversight or implementation of strategy. |
Board
of Directors
We
believe effective board governance promotes the long-term success and value creation of the company. The board should be responsible
for establishing the company's purpose and strategy, overseeing management in their implementation of strategy and performance
against objectives. The board should ensure a strong framework of control and risk oversight, including material ESG risks. The
board should assess and monitor culture and be engaged with the workforce, shareholders and wider society.
Board
Composition
Effective
decision making requires a mix of skills around the table and constructive debate between diverse and different-minded individuals. A
range of skills, experience and perspectives should be drawn together on the board.
These
include industry knowledge, experience from other sectors and relevant geographical knowledge. Independence of thought plays a
crucial role in the ability of a board to generate the debate and discussion that will challenge management, help enhance business
performance and improve decision-making. Board assessments will help the board ensure it has the necessary mix of skills,
diversity and quality of individuals to address the current risks and opportunities the company faces. Unitary boards should
comprise an appropriate combination of executive and non-executive directors such that no group of individuals dominates decision-making. We expect the size of the board to reflect the
size, nature and complexity of the business. We also expect regular internal and external board evaluations which include an
assessment of board composition and effectiveness.
Leadership
Running
businesses effectively for the long term requires effective collaboration and cooperation, with no individual or small group having unfettered
powers. Nor should they have dominant influence over the way a business is run or over major decisions about its operations or
future. There should be a division of responsibility between board leadership and executive leadership of the business.
We
believe that there should be a division of roles at the top of the organisation, typically between a Chief Executive Officer (CEO) and
an independent Chair.
▪ |
We will consider supporting the re-election of an existing
Chair & CEO role combination, recognising that this remains common in certain geographies. In reviewing on a case by case
basis we will take account of the particular circumstances of the company and consider what checks and balances are in place, such
as the presence of a strong Senior Independent Director with a clear scope of responsibility. |
▪ |
We will generally oppose any re-combination of the
roles of CEO and Chair, unless the move is on a temporary basis due to exceptional circumstances or other mitigating factors. |
▪ |
We will generally oppose any move of a retiring
CEO to the role of Chair. |
Listed Company ESG Principles & Voting Policies | 7 |
Governance
Independence
Companies
should be led and overseen by genuinely independent boards. When looking at board composition we generally expect to see a majority of
independent directors, with boards identifying their independence classifications in the Annual Report. It is preferable to see an identified
Senior Independent Director (SID) on the board, who will lead the appraisal of and succession planning for the Chair. We expect SIDs
to meet with investors and be a point of contact for escalating concerns if required.
In
assessing a director's independence we will have due regard for whether a director:
i. |
Has been an employee of the company within the last
five years. |
ii. |
Has had within the last three years a material business
relationship with the company. |
iii. |
Has received remuneration in addition to director fees
or participates in the company's option or variable incentive schemes, or is a member of the company's pension scheme. |
iv. |
Has close family ties with any of the company's advisers,
directors or senior employees. |
v. |
Holds cross- directorships or has significant links
with other directors through involvement in other companies or bodies. |
vi. |
Represents a significant shareholder. |
vii. |
Has served on the board for more than 12 years (or
9 for UK companies). |
▪ |
We will consider voting
against the re-election of non-independent
directors if the board is not majority independent (excluding employee representatives). In
doing so we will have regard for whether a company is controlled and the nature of the non-independence - for example, we are unlikely
to vote against shareholder representatives unless their representation is disproportionate to their shareholding. |
Succession
Planning & Refreshment
Regular
refreshment of the non-executive portion of a board helps draw in fresh perspectives, not least in the context of changes to
business and emerging opportunities and risks. It also helps limit the danger of group- think. Thoughtful and proactive succession
planning is therefore needed for board continuity, to ensure that a board is populated by individuals with an appropriate mix of
skills, experience and perspective. We expect the board to implement a formal process for the recruitment and appointment of new
directors, and to provide transparency of this in the Annual Report.
| ▪ | We will
vote against non-executive directors where there are concerns regarding board refreshment or excessive tenure. Where there are
directors who have served for over 12 years on a board which has seen no refreshment in 3 years (2 in UK), we will generally vote
against their re-election. If a director has served for over 15 years we will generally vote against their re- election. We will,
however, consider the impact on board continuity and the company's succession planning efforts prior to doing so. We may not apply
the tenure limit to directors who are founders or shareholder representatives. |
Diversity
We
believe that companies that make progress in diversity and inclusion (D&I) are better positioned for long-term sustainability and
outperformance. Diversity of thought, paired with a culture of inclusion, can help companies to tackle increasingly complex challenges
and markets. We expect boards to report on how they promote D&I throughout the business and believe that setting targets is important
to addressing imbalances. We recognise the importance of adopting a regional approach to diversity and inclusion, allowing us to press
for progress with appropriate consideration for the starting point. We have for several years, actively encouraged progress in gender
diversity at all levels, and have expanded our scope in relation to diversity and inclusion across geographies. In respect of ethnic
diversity, this is coming increasingly into focus as we encourage boards to progress in ensuring that their composition reflects their
employee and customer bases.
Listed Company ESG Principles & Voting Policies | 8 |
Governance |
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img009.jpg) |
Our
regional specific policies are below. In determining our votes we will take account of mitigating factors, such as the sudden departure
of a female board member. We will also consider any clear progress being made by the company on diversity and any assurance that diversity
shortfalls will soon be addressed.
Gender
Diversity
▪ |
UK:
We will generally vote against the Nomination Committee Chair of FTSE 350 companies if the board is not comprised of at least one third
female directors. For smaller companies, we will take this action if the board does not include at least one female director. |
|
|
▪ |
Europe: We will generally vote
against the Nomination Committee Chair of LargeCap companies if the supervisory board is not comprised of at least 30% female directors,
or is not in line with the local standard if higher. For smaller companies, we will take this action if the supervisory board does
not include at least one female director. |
▪ |
Australia: We will generally
vote against the Nomination Committee Chair of ASX300 companies if the board is not comprised of at least 30% female directors. |
|
|
▪ |
North
America: We will generally vote against the Nomination Committee Chair of LargeCap companies if the board is not comprised of at least
30% female directors. For smaller companies, we will take this action if the board does not include at least one female director |
|
|
Ethnic
Diversity |
|
|
▪ |
UK:
We will generally vote against the Nomination Committee Chair at the boards of FTSE 100 companies, if the board does not include at least
one member from an ethnic minority background. This is in line with targets set up by the Parker Review. |
|
|
▪ |
US:
We will generally vote against the Nomination Committee Chair at the boards of S&P 1500 & Russell 3000 companies if the
board does not include at least one member from a racial or ethnic minority background. |
Directors'
Time Commitment
Individual
directors need sufficient time to carry out their role effectively and therefore we seek to ensure that all directors maintain an appropriate
level of overall commitments such that allows them to be properly diligent.
▪ |
We will consider opposing the
election or re-election of any director where there is a concern regarding their ability to dedicate sufficient time to the role.
In making this assessment we will have regard for the ISS classification of 'overboarding'. |
▪ |
We will
generally oppose the re-election of any director who has attended fewer than 75% of board meetings in two consecutive years. |
Board
Committees
Boards
should establish committees, populated by independent and appropriately skilled non-executive directors, to oversee (as a minimum) the
nomination, audit and remuneration processes. It may also be appropriate for additional committees to be established, such as a risk
or sustainability committee. These committees should report openly on an annual basis about their activities and key decisions taken.
▪ |
We will consider voting against
committee members if we have concerns regarding the composition of a committee. |
Nomination
Committee
This
committee has responsibility for leading the process for orderly non-executive and senior management succession planning and recruitment,
and for overseeing the composition of the board including skillset, experience and diversity. We expect the committee to be comprised
of a majority of independent directors with an independent Chair.
▪ |
We will consider voting against
the re-election of the Nomination Committee Chair if we have concerns regarding the composition of the board or concerns regarding
poor succession planning. |
Listed Company ESG Principles & Voting Policies | 9 |
Governance
Audit Committee
This committee has
responsibility for monitoring the integrity of the financial statements, reviewing the company's internal financial controls and
risk management systems, reviewing the effectiveness of the company's internal audit function and appointing auditors. While we
prefer the committee to be wholly independent, at minimum we expect the committee to be comprised of a majority of independent
directors with an independent Chair and at least one member having recent and relevant financial experience.
| ▪ | We will generally vote against the re-election of the Audit Committee Chair if at least one member
of the Committee does not have recent and relevant financial experience. |
Remuneration Committee
This committee is responsible for determining the policy and setting
remuneration for executive and non-executive directors. The committee should ensure that remuneration is aligned with strategy and company
performance and should clearly demonstrate regard for the company's employees, for wider society and be cognisant of the company's licence
to operate when considering policy and the overall level of remuneration. We expect remuneration committees to be robust in their approach
to developing and implementing remuneration policies, with formal and transparent procedures for developing policies and for determining
remuneration packages. Remuneration committees should be comprised of a majority of independent directors with an independent Chair and
we expect members to have appropriate experience and knowledge of the business. No executive should be involved in setting their own
remuneration.
▪ |
Where
we have significant concerns regarding the company's remuneration policy or reward outcomes we may escalate these concerns through
a vote against the Chair or members of the Remuneration Committee. |
Director Accountability
We expect to be able to hold boards to account through engagement
and regular director re-elections and directors should feel that they are accountable to investors. We encourage individual, rather
than bundled, director elections. While our preference is for directors to be subject to re-election annually, we expect
re-elections to take place at least every three years. Lengthier board mandates, while not uncommon in some markets, risk divorcing
directors from an appropriate sense of accountability. Directors and management should make themselves available for discussions
with major shareholders as we expect to have open dialogue to share our perspectives and gain confidence that the individuals are
carrying out their roles with appropriate vigour and diligence. A further important element of director accountability to
shareholders is that investors should have the right, both formal and informal, to propose and promote individual directors to be
considered for election to the board by all shareholders.
▪ |
We
will generally oppose the re-election of non-independent NEDs who are proposed for a term exceeding three years. We may not apply
this to directors who are shareholder representatives. |
▪ |
Where
we have significant concerns regarding a board member's performance, actions or inaction to address issues raised we may vote against
their re-election. |
▪ |
We may
vote against directors who decline appropriate requests for meeting without a clear justification. |
▪ |
Where
a director has held a position of responsibility at a company which has suffered a material governance failure, we will consider
whether we are comfortable to support their re-election at other listed companies. |
▪ |
We will
generally support resolutions to discharge the supervisory board or management board members unless we have serious concerns regarding
actions taken during the year under review. Where there is insufficient information
regarding allegations of misconduct, we may prefer to abstain. In exceptional circumstances we may vote against the discharge
resolution to reflect serious ESG concerns if there is not another appropriate resolution. |
▪ |
We will
not support the election of directors who are not personally identified but are proposed as corporations. |
Listed Company ESG Principles & Voting Policies | 10 |
Governance
Reporting
A company's board should present a fair, balanced and understandable
assessment of the company's position and prospects - financial and non-financial - and of how it has fulfilled its responsibilities.
We support the principle of full disclosure of relevant and useful information, subject to issues of commercial confidentiality and prejudice.
Boilerplate disclosure should be avoided. We encourage companies to consider using the appropriate globally developed standards and would
particularly encourage the use of those created by the Taskforce for Climate related Financial Disclosures (TCFD), the International Integrated
Reporting Council (IIRC), the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). Audited reporting
and financial numbers should be published ahead of any relevant shareholder meetings. We continue to monitor the evolving reporting landscape
and consider new reporting developments as they emerge, either voluntary or regulatory.
▪ |
We
may consider voting against a company's Annual Report & Accounts if we have concerns regarding timely provision or disclosure. |
Political Donations & Lobbying
Companies should be consistent in their
public statements and not undermine these in private commentary to market participants or to politicians and regulators. We welcome
transparency from companies about their lobbying activities and believe that good companies have nothing to hide in this respect.
Similarly we encourage transparency of any political donations that companies deem appropriate - and we expect a clear explanation
of why such donations are an appropriate use of corporate funds.
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img010.jpg)
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img011.jpg)
Listed Company ESG Principles & Voting Policies | 11 |
Governance
|
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_n148c-img01.jpg) |
Risk & Audit
The board is responsible for determining the company's risk appetite,
establishing procedures to manage risk and for monitoring the company's internal controls. We expect boards to conduct robust assessments
of the company's material risks and report to shareholders on risks, controls and effectiveness. The introduction of global accounting
standards has led to much greater investor confidence in the accounts produced by companies around the world. It has also assisted in
creating consistency of reporting across companies, enabling fairer comparisons between different operating businesses. We therefore
encourage companies seeking international investment to report under International Financial Reporting Standards (IFRS) or US GAAP. As
a firm abrdn supports the continued development of high quality global accounting standards.
An independent audit, delivered by a respected audit firm, is a
required element for investor confidence in reporting by companies. We strongly favour meaningful, transparent and informative
auditor reports, giving us additional insights into the audit process and accounting outcomes. Audit fees must be sufficient to pay
for an appropriately in-depth assurance process. We would be concerned if a company sought to make savings in this respect as the
cost in terms of damage to audit effectiveness and confidence in the company's accounts would be much more substantial.
The independence of the auditor and the
standard of their work, particularly in challenging management, should be subject to regular assessment that is appropriately disclosed.
Even when individuals carrying out the audit are refreshed, we believe that the independence of the audit firm erodes over time and we
will encourage a tender process and change of audit firm where an engagement has lasted for an extended period. In order to demonstrate
the level of independence, companies should not have the same audit firm in place for more than 20 years.
The relationship with the auditor should be mediated through the audit
committee. Where we are significant shareholders, we expect to be consulted on plans to tender and replace auditors.
▪ |
We will generally vote against the re-election of an
auditor which has a tenure of 20 years or over, if there are no plans for rotation in the near term. |
▪ |
We
will consider voting against the auditors if we have concerns regarding the accounts presented or the audit procedures used. |
▪ |
We will vote against the approval of auditor fees if
we have concerns regarding the level of fees or the balance of non-audit and audit fees. |
Remuneration
Remuneration policies and the overall levels
of pay should be aligned with strategy, attracting and retaining talent and incentivising the decisions and behaviours needed to create
long-term value. The component parts of remuneration should be structured so as to link rewards to corporate and individual performance
and they should be considered in the context of the remuneration policies when taken as a whole. We recognise the benefits of simplicity
in forming the policy, which should clearly link outcomes and expectations for those receiving the remuneration, as well as external
stakeholders. The structure should be transparent and understandable.
A company's annual report should contain an informative statement of
remuneration policy which communicates clearly to stakeholders how it has developed and evolved. This should include details of any stress
testing that may have been undertaken to understand the policy outcomes for different business scenarios. The remuneration committee
should provide a clear description of the application of policy and the outcomes achieved.
Listed Company ESG Principles & Voting Policies | 12 |
Governance
|
![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img013.jpg) |
Base salary should be set at a level appropriate for the role and
responsibility of the executive. We discourage increases which are driven by peer benchmarking, and expect increases to be aligned
with the wider workforce. Consideration should also be given to the knock on impact to variable remuneration potential. Pension
arrangements and benefits should be clearly disclosed. We generally expect pension structures to be aligned with the wider
workforce.
A company should structure variable, performance-related pay to
incentivise and reward management in a manner that is aligned with the company's sustainable performance and risk appetite over the
long term. We expect all variable pay to be capped, preferably as a proportion of base salary. In the UK we expect variable pay to
be capped as a proportion of salary. In other markets, if variable pay is capped at a number of shares, we expect the value of
grants to be kept under review annually to ensure the value remains appropriate and is not excessive.
Performance metrics used to determine
variable pay should be clearly disclosed and aligned with the company's strategy. A significant portion of performance metrics
should seek to measure significant improvements in the underlying financial performance of the company. We also encourage the
inclusion of non-financial metrics linked to targets which are aligned with the company's progress on its ESG strategy. Where
possible we expect these targets to be quantifiable and disclosed.
Variable pay arrangements should incentivise participants to
achieve above-average performance through the use of challenging targets. We encourage sliding-scale performance measures and expect
performance target ranges to be disclosed to enable shareholders to assess the level of challenge and pay for performance alignment.
We expect annual bonus targets to be disclosed retrospectively and encourage the disclosure of long term incentive (LTI) targets at
the beginning of the performance period, but at minimum we expect retrospective disclosure. Where bonus or LTI targets are not
disclosed due to commercial sensitivity we expect an explanation of why the targets continue to be considered sensitive
retrospectively and expect some detail regarding the level of achievement vs target. Where a share price metric is being used, we
expect this to be underpinned by a challenging measure of underlying performance.
We encourage settlement of a portion of the annual bonus in shares
which are deferred for at least one year.
We expect settlement of long term incentives to be in shares,
with rationale provided for any awards settled in cash. Long term incentives should have a performance period of no less than three years.
In the UK we expect a further holding period of two years to be applied, and we encourage this in other markets.
We do not generally support restricted share schemes or value creation
plans. We will consider supporting the use of restricted share plans which have been structured consistent with the guidelines of the
Investment Association.
We expect appropriate malus and clawback provisions to be applied
to variable remuneration plans.
We expect shareholding guidelines to be adopted for executive directors
and encourage the adoption of post-departure shareholding guidelines.
We expect details of any use of discretion to be disclosed and its
use should be justifiable, appropriate and clearly explained. We would expect policies to be sufficiently robust so that discretion is
only necessary in exceptional circumstances. We do not generally support exceptional awards, and are particularly sensitive to such awards
being granted to reward a corporate transaction.
We expect executive service contracts to provide for a maximum notice
period of 12 months. We will consider local best practice provisions related to severance arrangements when voting.
Non-executive fees should reflect the role's level of responsibility
and time commitment. We do not support NED's participation in option or performance-related arrangements. However we do support the payment
of fees in shares, particularly where conservation of cash is an issue.
In the UK our expectations of companies
are aligned with the Investment Association's Principles of Remuneration.
Where significant changes to remuneration arrangements are being considered, we would expect remuneration committees to consult with their
largest shareholders prior to finalising any changes. Where any increase to variable remuneration is proposed, we would expect this to
be accompanied by a demonstrable increase in the stretch of the targets. Furthermore we expect any increases to remuneration to be subject
to shareholder approval.
Listed Company ESG Principles & Voting Policies | 13 |
Governance
In response to the issues arising from the cost of living
crisis being experienced by many people in the UK, we expect companies to focus any additional help towards those members of the workforce
who need it most. We expect Remuneration Committees to take into account factors arising from the cost of living crisis when deliberating
over executive pay outcomes. We would be concerned by reputational issues arising from decisions made in these unusual circumstances and
may make this a factor in our voting decisions at relevant AGMs.
In
line with the expectations set out above we will generally vote against the appropriate resolution(s) where:
▪ | We consider the overall reward
potential or outcome to be excessive. |
| |
▪ |
A
significant increase to salary has been granted which is not aligned with the workforce or is not sufficiently justified. |
|
|
▪ |
A
significant increase to performance-related pay has been granted which is not sufficiently justified, is not accompanied by an increase
in the level of stretch required for achievement or results in the potential for excessive reward. |
|
|
▪ | There is no appropriate cap on
variable incentive schemes. |
| |
▪ | Performance targets for annual
bonus awards are not disclosed retrospectively and the absence of disclosure is not explained. |
| |
▪ |
Performance
targets for long term incentive awards are not disclosed up front and there is no compelling explanation regarding the absence of
disclosure or a commitment to disclose retrospectively. |
|
|
▪ |
Performance
targets are not considered sufficiently challenging, either at threshold, target or maximum. |
|
|
▪ | Relative performance targets allow
vesting of awards for below median performance. |
| |
▪ | Retesting provisions
apply. |
| |
▪ | Incentives that have been
conditionally awarded have been repriced or performance conditions changed part way through a performance period. |
| |
▪ |
We
have concerns regarding the use of discretion or the grant of exceptional awards. |
|
|
▪ |
Pension
arrangements are excessive. |
|
|
▪ |
Pension
arrangements are not aligned with the wider workforce (UK). |
Investor Rights
The interests of minority shareholders
must be protected and any major, or majority, investor should not enjoy preferential treatment. The structure of ownership or control
should minimise the potential for abuse of public shareholders.
Corporate Transactions
Companies should not make significant
changes to their structure or nature without being fully transparent to their investors. Shareholders should have the opportunity to
vote on significant corporate activity, such as mergers and acquisitions. Where a transaction is with a related party, only independent
shareholders should have a vote. Even in markets where no vote is given to shareholders in these circumstances, investors need transparent
disclosure of the reasons for any such major change. Companies should expect that shareholders may want to discuss and debate proposed
developments
Diversification
beyond the core skills of the business needs to be justified as it is more often than not a distraction from operational performance.
All major deals need to be clearly explained and justified in the context of the pre-existing strategy and be subject to shareholder
approval.
▪ |
We
will vote on corporate transactions on a case by case basis. |
Dividends
We will generally support the payment
of dividends but will scrutinise the proposed level where it appears excessive given the company's financial position.
Share Capital
The board carries responsibility for
prudent capital management and allocation.
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| Governance | ![](https://www.sec.gov/Archives/edgar/data/917100/000110465924011068/tm244778d1_sp8img014.jpg) |
Share Issuance
We will consider capital raises which
are proposed for a specific purpose on a case by case basis but recognise that it can be beneficial for companies to have some
general flexibility to issue shares to raise capital. However we expect issuances to be limited to the needs of the business and
companies should not issue significant portions of shares unless offering these on a pro-rata basis to existing shareholders to
protect against inappropriate dilution of investments.
| ▪ | Where a company seeks a general authority to issue shares we generally expect this to be limited to
25% of the company's share capital for pre-emptive issuances. In the UK we are aligned with the guidance of the Investment
Association Share Capital Management Guidelines. |
▪ |
Where a company seeks a general authority to issue
shares we generally expect this to be limited to 10% of the company's share capital for non-pre-emptive issuances. In
the UK we are aligned with the guidance of the Investment Association Share Capital Management Guidelines and those of the Pre-Emption
Group. |
▪ |
We will not generally support share issuances at investment
trusts unless there is a commitment that shares would only be issued at a price at or above net asset value. |
When considering our votes we will, however, take account of the company's
circumstances and any further detail regarding proposed capital issuance authorities prior to voting.
Following changes to the UK’s Pre-Emption Group Guidelines in November 2022, which reflect an increase on previous limits, we will
hold the Chair of the company accountable for any perceived misuse of the increased flexibility through a vote against their re-election.
Buyback
We recognise that share buybacks can be a flexible means of returning
cash to shareholders.
▪ We
will generally support buyback authorities of up to 10% of the issued share capital.
Related Party Transactions
The nature of relations - particularly any related party transactions
(RPTs)- with parent or related companies, or other major investors, must be disclosed fully. Related party transactions must be agreed
on arm's length terms and be made fully transparent. Where they are material, they should be subject to the approval of independent shareholders.
|
▪ |
We will vote against RPTs where there is insufficient
transparency of the nature of the transaction, the rationale, the terms or the views
and assessment of directors and advisors. |
Article/Bylaw amendments
While it is standard to see proposals from companies to amend their
articles of association or bylaws, we will review these on a case by case basis. When doing so we expect full transparency of the proposed
changes to be disclosed.
|
▪ |
We will vote against amendments which will reduce shareholder
rights. |
Anti-Takeover Defences
There should be no artificial structures
put in place to entrench management and protect companies from takeover. The best defence from hostile takeover is strong operational
delivery.
|
▪ |
We will generally vote against anti-takeover/’poison
pill' proposals. |
Listed Company ESG Principles & Voting Policies | 15 |
Governance
|
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Voting
Rights
We are strong supporters of the principle of 'one share, one vote' and therefore favour equal voting rights for all shareholders.
| ▪ | We will generally vote against proposals which seek to introduce or continue capital structures
with multiple voting rights. |
|
▪ |
We will consider voting
against proposals to raise new capital at companies with multiple share classes and voting rights. |
General
Meetings
Shareholder meetings provide an
important opportunity to hold boards to account not only through voting on the proposed resolutions but also by enabling investors
the opportunity to raise questions, express views and emphasise concerns to the entire board. We may make a statement at a company's
AGM as a means of escalation to reinforce our views to a company's board.
We welcome the opportunity to attend
meetings virtually, being of the view that this can increase participation given obstacles such as location or meeting
concentration. However we are not supportive of companies adopting virtual-only meetings as we believe this format reduces
accountability. Our preference is for a hybrid meeting format to balance the flexibility of remote attendance with the
accountability of an in-person meeting.
▪ |
We will generally support resolutions seeking approval
to shorten the EGM notice period to minimum 14 days, unless we have concerns regarding previous inappropriate use of this flexibility. |
▪ |
We will generally support proposals to enable virtual
meetings to take place as long as there is confirmation that the format will be hybrid, with physical meetings continuing to take
place (unless prohibited by law). We expect virtual attendees to have the same rights to
speak and raise questions as those attending in-person. |
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Listed Company ESG Principles & Voting Policies | 17 |
Sustainability
As
part of strategic planning, boards need to have oversight of, and clearly articulate, the key opportunities and risks affecting the sustainability
of the business model. This includes having a process for, and transparent disclosure of, potential and emerging opportunities and risks
and the actions being taken to address them.
The
effective management of risks extends to long- term issues that are hard to measure and whose timeframe is uncertain and will include
the management of environmental and social issues. We use the UN Global Compact's four areas of focus in assessing how companies are
performing in this area.
Specifically
we expect companies to be able to demonstrate how they manage their exposures under the following headings.
The
Environment
It
is generally accepted that companies are responsible for the effects of their operations and products on the environment. The steps
they take to assess and reduce those impacts can lead to cost savings and reduce potential reputational damage. Companies are responsible
for their impact on the climate and they face increased regulation from world governments on activities that contribute to climate change.
We
expect that companies will:
▪ |
Identify,
manage and reduce their environmental impacts. |
▪ |
Understand
the impact of climate change along the company value chain. |
▪ |
Develop
group-level climate policies and, where relevant, set targets to manage the impact, report on policies, practices and actions taken
to reduce carbon and other environmental risks within their operations. |
▪ |
Comply
with all environmental laws and regulations, or recognised international best practice as a minimum. |
Where we have serious concerns regarding a board’s actions, or inaction, in relation to the environment we will consider taking
voting action on an appropriate resolution.
We will use the indicators within the Carbon Disclosure Project to identify companies which
are not fulfilling their climate commitments. Where appropriate we will take voting action to encourage better practice among companies
which we deem to be laggards.
Listed Company ESG Principles & Voting Policies | 18 |
Sustainability
Labour
and employment
Companies that respect internationally
recognised labour rights and provide safe and healthy working environments for employees are likely to reap the benefits. This approach
is likely to foster a more committed and productive workforce, and help reduce damage to reputation and a company's license to operate.
We expect companies to comply with all employment laws and regulations and adopt practices in line with the International Labour Organization's
core labour standards. a minimum.
In particular, companies will:
▪ |
Take
affirmative steps to ensure that they uphold decent labour standards. |
|
|
▪ |
Adopt
strong health and safety policies and programmes to implement such policies. |
▪ |
Adopt
equal employment opportunity and diversity policies and a programme for ensuring compliance with such policies. |
|
|
▪ |
Adopt
policies and programmes for investing in employee training and development. |
|
|
▪ |
Adopt
initiatives to attract and retain talented employees, foster higher productivity and quality, and encourage in their workforce a
commitment to achieving the company's purpose. |
|
|
▪ |
Ensure
policies are in place for a company's suppliers that promote decent labour standards, and programmes are in place to ensure high
standards of labour along supply chains. |
|
|
▪ |
Report
regularly on its policy and implementation of managing human capital. |
Where
we have serious concerns regarding a board's actions, or inaction, in relation to labour and employment we will consider taking voting
action on an appropriate resolution.
Human
rights
We
recognise the impact that human-rights issues can have on our investments and the role we can play in stimulating progress. We draw upon
a number of international, legal and voluntary agreements for guidance on human-rights responsibilities
and compliance.
Our
primary sources are the International Bill of Rights and the core conventions of the International Labour Organisation (ILO), which form
the list of internationally agreed human rights, and the UN Guiding Principles on Business and Human Rights (UNGPs), which clarifies
the roles of states and businesses. We encourage companies to use the UNGPs Reporting Framework and encourage disclosure in line with
this guidance.
We
expect companies to:
▪ |
Continually
work to understand their actual and potential impacts on human rights. |
▪ |
Establish
systems that actively ensure respect for human rights. |
▪ |
Take
appropriate action to remedy any infringements on human rights. |
Where
we have serious concerns regarding a board's actions, or inaction, in relation to human rights we will consider taking voting action
on an appropriate resolution.
|
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Listed Company ESG Principles & Voting Policies | 19 |
Sustainability
Business
ethics
As
institutions of
wealth and influence, companies
have a significant impact on
the prosperity
of their local communities
and the wider world. Having
a robust code of ethics and ensuring
professional conduct mean companies operate more effectively, particularly when it
comes to ethical principles governing
decision-making. A company's failure to
conform to internationally recognised
standards of business ethics on matters
such as bribery and corruption, can increase
its risk of facing
investigation, litigation and fines.
This could undermine
its license
to operate, and affect its
reputation and image.
We
expect companies to have policies
in place
to support the following:
▪ | Ethics
at
the heart of the organisation's
governance. |
| |
▪ | A zero-tolerance policy on bribery and corruption. |
| |
▪ | How people
are rewarded,
as pay can influence
behaviour. |
| |
▪ | Respect for
human rights. |
| |
▪ | Tax transparency. |
| |
▪ | Ethical training
for employees. |
Where
we have serious concerns regarding a board's
actions, or
inaction, related to
business ethics we will consider taking voting action on an appropriate resolution.
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Listed Company ESG Principles & Voting Policies | 20 |
Listed Company ESG Principles & Voting Policies | 21 |
Environmental
& Social
Resolutions
We
will review any resolution at company meetings which ISS has identified as covering environmental and social factors. The following will
detail our overarching approach and expectations.
Our
approach to vote analysis is consistent across active and quantitative
investment strategies:
▪ | Review
the resolution, proponent
and board statements, existing disclosures, and external research. |
▪ | Engage with
the company, proponents, and other stakeholders as required. |
▪ | Involve thematic
experts, regional specialists, and investment analysts in decision-making
to harness a wide range of expertise and include
all material factors in our
analysis. |
▪ | Ensure consistency
by using our own in-house
guidance to frame case-by-case
analysis. |
▪ | Monitor the
outcomes of votes. |
▪ | Follow-up with on-going
engagement as required. |
Given
the nature of the topics covered by these
resolutions we do not apply binary voting policies. We
adopt a nuanced approach to our voting research
and outcomes and will consider the specific
circumstances of the company concerned. Our objective is
not to vote in favour of all
shareholder resolutions but to determine the
best outcome for the company
in the context of the best outcome for our clients. There
are instances where we are supportive
of the spirit of a resolution
however there may be a reason
which prevents our support for the proposal.
For example, where the purpose of the
resolution is unclear, where the wording is overly
prescriptive, when suggested implementation is overly burdensome
or where the proposal strays too closely to
the board's responsibility for
setting the company's strategy.
Management
Proposals
We are
supportive of the steps being
taken by companies to provide transparent, detailed reporting of their ESG
strategies and targets. While shareholder proposals on environmental and social topics have
been common on AGM agendas for several years, an increasing number
of companies are presenting management proposals, such as so called 'say
on climate' votes, for shareholder approval. While we welcome the intention of
accountability behind these votes, we have reservations about
the potential for them to
limit the scope for subsequent investor
challenge and diminish the direct responsibility and
accountability of the board and individual directors. We believe
it is the role of the board
and the executive to develop and apply strategy, including
ESG strategies, and we will continue to use existing voting items
to hold boards to account
on the implementation of these strategies. As active investors
we also regularly engage with investee
companies on ESG topics and
find this dialogue to
be the best opportunity to
provide feedback.
We will review the appropriateness of ‘say on climate’ votes and consider if other voting mechanisms should be applied to
ensure both Boards and Executives apply the appropriate rigour to initiate and deliver strategies to support the climate transition.
Shareholder
Proposals
The number
of resolutions focused on environmental and social (E&S) issues filed
by shareholders continues to
grow rapidly. The following
provides an overview of some of the factors we consider when assessing the most
prevalent themes for shareholder proposals.
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Listed Company ESG Principles & Voting Policies | 22 |
Environmental
& Social
Resolutions
Climate
Change
We are
members of the Net Zero Asset
Managers Initiatives and this is reflected in our Active
Ownership approach. We encourage the companies in which
we invest to demonstrate a robust
methodology underpinning Paris aligned goals and targets and
are supportive of resolutions that will help companies
to achieve this. Once a credible climate strategy is
in place, we prioritise evidence of implementation over requests to re-draft strategies
and targets after only a year
or two.
A growing number
of resolutions call on companies
to increase the transparency of their
reporting on climate-related lobbying. These proposals
typically encompass direct lobbying
undertaken by the company and indirect lobbying undertaken by
trade associations and other organisations of which it is
a member or supporter. Lobbying
contrary to the objectives
of the Paris Agreement is effective in creating climate
policy inertia and impeding
the transition to net zero economies.
We do not
evaluate resolutions
in isolation. Our approach recognises
the links between corporate governance, strategy and climate approach. Where a company's operational
response to climate change is
inadequate, the effectiveness of board oversight and corporate governance may also be called into
question.
We expect and encourage
companies to:
▪ | Demonstrate that a
robust methodology underpins Paris aligned,
net zero goals and targets. |
▪ | Set targets
for absolute emission reduction, not
just carbon intensity,
to show a clear pathway to
net zero. |
▪ | Report in alignment
with the TCFD framework. |
▪ | Link
targets to remuneration and ensure
they are
reflected in capital
expenditure and R&D plans. |
▪ | Carefully manage
climate-related lobbying by
ensuring appropriate oversight, transparent disclosure
of activities, and alignment of activities with the company's
strategy and publicly stated positions. |
Diversity & Inclusion
Diversity
& Inclusion (D&I)
is an important and growing theme for shareholder resolutions.
In recent years resolutions
have focussed on racial equity
audits, pay gap reporting, transparent disclosure of
D&I metrics and assessments of the
efficacy of D&I programmes.
A
racial equity audit is an independent
analysis of a company's business practices designed to identify
practices that may have a discriminatory
effect. We are supportive of racial equity audits in
relation to internal and external D&I programmes.
It is appropriate that these
programmes should have KPIs
and audit mechanisms in place to measure
and evaluate outcomes. Some
proposals request racial equity audits of provision of services.
We are aware that measuring provision of service is
challenging and gathering racial data on customers can be difficult and inappropriate.
There are also multiple different
factors that can influence
service provision and which
could be misconstrued as being racially
motivated. We will however, support
resolutions which are not unduly
prescriptive and allow companies to carry
out audits within a reasonable timeframe, at
a reasonable cost, and excluding confidential or proprietary
information.
We
consider standardised gender pay gap disclosure to be an important tool for
assessing how companies are addressing gender inequality.
Reporting on gender pay gaps across global operations can help companies to remain ahead
of the regulatory curve. It also
enables them to offer better opportunities and remuneration
for women around the world. We are therefore supportive
of resolutions which are likely to deliver these benefits. Proposals must
be carefully drafted to achieve these outcomes. For instance, in the past
we have been unable to
support resolutions which
called for global median gender and racial pay
gap reporting as it was unclear how
this would reveal potential pay disparities at a local level and how
it could be implemented by
companies with operations in jurisdictions where
collection of racial identity data is
illegal.
Listed Company ESG Principles & Voting Policies | 23 |
Environmental
& Social
Resolutions
In the US market we
support public disclosure of EEO-1 forms by companies. The
EEO-1 form details a
comprehensive breakdown of workforce by race and gender
according to ten employment categories. The
form is submitted privately to the US
Equal Employment Opportunity Commission on an annual basis. When
publicly disclosed, it offers investors and
other stakeholders data in a standardised and comparable
form. We have used our engagement programme to ask the companies in which
we invest to disclose this
form for their US operations
while making it central to our D&I voting
approach and supporting resolutions
that request it.
Human Rights
As
a supporter of the UN Guiding Principles
on Business and Human
Rights (UNGPs), we expect companies to demonstrate
how human rights due diligence is
conducted across operations, services, product use and
the supply chain. Companies
can have a significant impact
on human rights directly through
operations and provision of services, and indirectly through product
use and the supply
chain. In recent years the sale and end-use of controversial technologies, such as facial recognition
software, has emerged as a
prominent theme.
We expect and encourage companies
to:
| ▪ | Have
robust due diligence processes to
assess the actual and potential
human rights impacts of their operations, services, product use
and supply chain. |
| ▪ | Conduct customer and supplier vetting
processes commensurate with the
risk of human rights abuse. |
| ▪ | Publicly disclose
information about the operation
of these processes and utilise
the UNGPs' Reporting Framework. This will
improve the standard and consistency of human
rights reporting and enable more informed
investment decision making. |
Corporate Lobbying
& Political Contributions
Corporate lobbying
and political contributions are a recurrent theme of
shareholder resolutions, particularly in the US. These proposals
typically encompass direct lobbying
undertaken by the company
and indirect lobbying undertaken by trade
associations and other organisations of which it is a
member or supporter. Proposals may also request the
disclosure of more information regarding the process
and rationale for political contributions. We expect companies
to make transparent, consolidated disclosures of direct and indirect
lobbying and political expenditure. This disclosure
should be underpinned by a coherent policy that: explains public
policy priorities and the
rationale for associated expenditure,
identifies the management positions
responsible for public policy engagement, and provides appropriate
mechanisms for board oversight. These measures should mitigate
the risks associated with corporate lobbying
and political contributions, protecting the interest of
shareholders and other stakeholders.
Nuclear Energy
In the Japanese market
nuclear energy is a
recurrent theme of shareholder
resolutions. The Japanese government
is seeking to
reduce the nation's reliance
on coal and its energy
strategy presents safe
nuclear power generation as an important
source of base-load power. In
this context, resolutions which seek to
limit or cease the nuclear
operations of an individual
company do not appear to
be in the best interests of shareholders and
other stakeholders. The
health & safety risks associated with nuclear energy are high,
must be managed carefully across the industry,
and are an important
consideration in our
voting.
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Listed Company ESG Principles & Voting Policies | 24 |
Important Information
This document is strictly for information purposes only
and should not be considered as an offer, investment recommendation, or solicitation, to deal in any of the investments or funds mentioned
herein and does not constitute investment research. abrdn does not warrant the accuracy, adequacy or completeness of the information and
materials contained in this document and expressly disclaims liability for errors or omissions in such information and materials.
Any research or analysis used in the preparation of
this document has been procured by abrdn for its own use and may have been acted on for its own purpose. The results thus obtained are
made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document
may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets
or companies. These statements are only predictions and actual events or results may differ materially. The reader must make their own
assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations,
as they may consider necessary or appropriate for the purpose of such assessment. This material serves to provide general information
and is not meant to be investment, legal or tax advice for any particular investor. No warranty whatsoever is given and no liability
whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons
acting on any information, opinion or estimate contained in this document. abrdn reserves the right to make changes and corrections to
any information in this document at any time, without notice. This material is not to be reproduced in whole or in part without the prior
written consent of abrdn.
Applying ESG and sustainability criteria in the investment
process may result in the exclusion of securities within the universe of potential investments. The interpretation of ESG and sustainability
criteria is subjective meaning that products may invest in companies which similar products do not (and thus perform differently) and
which do not align with the personal views of any individual investor. Furthermore, the lack of common or harmonized definitions and
labels regarding ESG and sustainability criteria may result in different approaches by managers when integrating ESG and sustainability
criteria into investment decisions. This means that it may be difficult to compare strategies within ostensibly similar objectives
and that these strategies will employ different security selection and exclusion criteria. Consequently, the
performance profile of otherwise similar vehicles may deviate more substantially than might otherwise be expected. Additionally, in the
absence of common or harmonized definitions and labels, a degree of subjectivity is required and this will mean that a product
may invest in a security that another manager or an investor would not.
abrdn plc is registered in Scotland (SC286832) at 1 George
Street, Edinburgh EH2 2LL.
Listed Company ESG Principles & Voting Policies | 25 |
For
more information
visit abrdn.com
GB-070223-187536-4
abrdn.com | |
STA0223824336-001 |
PART C - OTHER INFORMATION
Item 25. | Financial Statements and Exhibits |
| 1. | Financial statements. The Registrant’s audited financial statements,
notes to the financial statements and the report of the independent public accounting firm are included in the Fund’s [Annual Report
for the fiscal year ended December 31, 2023], contained in its Form N-CSR, and are incorporated herein by reference. |
| (d) | Article V of the Fund’s Amended and Restated By-laws, as amended on September 30, 2015, is incorporated herein by
reference.(3) |
| (h) | Form of Underwriting/Sales/Dealer Manager Agreement.(5) |
| (1) | Amended and Restated Master Custodian Agreement.(5) |
| (2) | First Amendment to the Transfer
Agency and Service Agreement.(5) |
| (4) | Administration Agreement.(5) |
| (l) | Opinion and Consent of Dechert LLP.(5) |
| (n) | Consent of independent registered public accounting firm for the Fund.(5) |
(2) Code
of Ethics of the Investment Manager.(4)
(2) Form of
Prospectus Supplement Relating to Common Shares(4)
(3) Form of
Prospectus Supplement Relating to Preferred Shares(4)
(4) Form of
Prospectus Supplement Relating to Notes.(4)
(5) Form of
Prospectus Supplement Relating to Subscription Rights to Acquire Common Shares.(4)
| (1) | Incorporated by reference to the Fund’s Registration Statement on Form N-2, filed with the SEC on June 22, 2004 (File
No. 33-73652). |
| (2) | Incorporated by reference to the Fund’s Form N-SAR-B, filed with the SEC on February 28, 2007 (File No. 811-08266). |
| (3) | Incorporated by reference to the Fund’s Form N-SAR-B/A, filed with the SEC on March 2, 2017 (File No. 811-08266). |
| (5) | To be filed by amendment. |
Item 26. | Marketing Arrangements |
Not applicable.
Item 27. | Other Expenses of Issuance and Distribution |
The following table sets forth the estimated expenses
to be incurred in connection with the offering described in this Registration Statement:
Category | |
Estimated
Expenses | |
SEC Registration Fees | |
| * | |
New York Stock Exchange Listing Fees | |
| * | |
Independent Public Accounting Firm Fees and Expenses | |
| * | |
Legal Fees and Expenses | |
| * | |
FINRA Fees | |
| * | |
Miscellaneous | |
| * | |
Total | |
| * | |
*To be completed by amendment.
Item 28. | Persons Controlled by or Under Common Control |
None.
Item 29. | Number of Holders of Securities (as of January 30, 2024) |
Title of Class | |
Number of Record Holders | |
Common Stock, par value $.001 per share | |
| 230 | |
Item 30. | Indemnification and Limitation of Liability |
Reference is made to Sections 2-405.2 and 2-418
of the Maryland General Corporation Law, Article VII of the Fund’s Charter and Article VI of the Fund’s Amended
and Restated By-Laws (the “By-Laws”), each of which provide for indemnification.
Section 2-405.2 of the Maryland General Corporation
Law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation
and its stockholders for money damages except for liability resulting from (a) actual receipt of an improper benefit or profit in
money, property or services or (b) active and deliberate dishonesty established by a final judgment as being material to the cause
of action. The charter of the Fund contains such a provision which eliminates such liability to the maximum extent permitted by Maryland
law, provided that such limitation may not protect a director or officer against any liability to the Fund or its stockholders to which
he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his duties.
Section 2-418 of the Maryland General Corporation
law requires a corporation (unless its charter provides otherwise, which the Fund’s charter does not) to indemnify a director or
officer who has been successful on the merits or otherwise, in the defense of any proceeding to which he is made a party by reason of
his service in that capacity, or in the defense of any issue, claim or matter in any such proceeding.
Section 2-418 of the Maryland General Corporation
Law permits a corporation, subject to certain limitations, to indemnify its directors, officers, employees and agents against expenses
(including attorneys’ fees, judgments, penalties, fines and settlements) actually and reasonably incurred by them in connection
with any suit or proceeding to which they are a party by reason of their service in those or other capacities unless it is established
that (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was
committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) the director or officer actually received
an improper personal benefit in money, property or services or (c) in the case of any criminal proceeding, the director or officer
had reasonable cause to believe that the act or omission was unlawful. However, under the Maryland General Corporation Law, a Maryland
corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on
the basis that personal benefit was improperly received, unless in either case a court orders indemnification and then only for expenses.
In addition, the Maryland General Corporation Law permits a corporation to advance reasonable expenses to a director or officer upon the
corporation’s receipt of (a) a written affirmation by the director or officer of his good faith belief that he has met the
standard of conduct necessary for indemnification by the corporation and (b) a written undertaking by him or on his behalf to repay
the amount paid or reimbursed by the corporation if it shall ultimately be determined that the standard of conduct was not met.
Article VII of the Fund’s Charter provides
that the Fund shall indemnify and advance expenses to its currently acting and former directors and officers to the fullest extent permitted
by the Maryland General Corporation Law. The Fund’s board of directors may make further provision for indemnification of directors,
officers, employees and agents to the fullest extent permitted by Maryland law. The Charter provides, however, that the Fund’s directors
and officers shall not be indemnified against liability arising from willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of their office.
Article VI of the Fund’s By-Laws requires
the Fund to indemnify and advance expenses to current and former directors and officers of the Fund to the extent permissible under the
Maryland General Corporation Law and other applicable law, provided that, prior to advancing any expenses, in addition to the affirmation
and undertaking required by the Maryland General Corporation Law, (a) the person seeking indemnification shall provide to the Fund
a security in form and amount acceptable to the Fund for his undertaking, (b) the Fund is insured against losses arising by reason
of the advance or (c) either (i) a majority of a quorum of directors of the Corporation who are neither “interested persons”
as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended, nor parties to the proceeding, or (ii) independent
legal counsel, in a written opinion, shall determine that there is reason to believe that the person seeking indemnification will ultimately
be found to be entitled to indemnification. Employees and agents who are not officers or directors of the Fund may be indemnified in the
same manner and to such further extent as permissible under Maryland General Corporation Law.
Insofar as indemnification for liability arising
under the Securities Act, may be permitted to directors, officers and controlling persons of the Fund pursuant to the foregoing provisions
or otherwise, the Fund has been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the Fund of expenses incurred or paid by a director, officer or controlling person of the Fund in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being
registered, the Fund will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act
and will be governed by the final adjudication of such issue.
Item 31. | Business and Other Connections of the Advisers |
Information as to directors and officers of the
Investment Manager is included in its Form ADV filed with the SEC (File No. 801-62020) and incorporated herein by reference.
Item 32. | Location of Accounts and Records |
All accounts, books and other documents required
by Section 31(a) of the Investment Company Act of 1940, as amended, and the rules and regulations thereunder to be maintained
(i) by the registrant, will be maintained at its offices located at 1900 Market Street, Suite 200, Philadelphia, PA 19103, or
at State Street Bank and Trust Company at State Street Financial Center, 1 Heritage Drive, 3rd Floor, North Quincy, MA 02171 and (ii) by
the Adviser, will be maintained at its offices located at 1900 Market Street, Suite 200, Philadelphia, PA 19103.
Item 33. | Management Services |
Not Applicable.
| (3) | The Registrant hereby undertakes: |
| a. | to file, during a period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
| (1) | to include any prospectus required by Section 10(a)(3) of the Securities Act; |
| (2) | to reflect in the prospectus any facts or events after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective registration statement. |
| (3) | to include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement
or any material change to such information in the Registration Statement. |
Provided, however, that paragraphs a(1), a(2), and a(3) of
this section do not apply to the extent the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange
Act that are incorporated by reference into the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that
is part of the registration statement.
| b. | that for the purpose of determining any liability under the Securities Act, each post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof; |
| c. | to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering; |
| d. | that, for the purpose of determining liability under the Securities Act to any purchaser: |
| (1) | if the Registrant is subject to Rule 430B: |
(A) Each prospectus filed by the Registrant pursuant
to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part
of and included in the registration statement; and
(B) Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance
on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (x), or (xi) for the purpose of providing the
information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement
as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities
in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is
at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities
in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part
of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or
prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective
date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such effective date; or
| (2) | if the Registrant is subject to Rule 430C: each prospectus filed pursuant to Rule 424(b) under the Securities Act as
part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses
filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use. |
| e. | that for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution
of securities: |
The undersigned Registrant undertakes that in a primary
offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used
to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications,
the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to the purchaser:
| (1) | any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424
under the Securities Act; |
| (2) | free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by
the undersigned Registrant; |
| (3) | the portion of any other free writing prospectus or advertisement pursuant to Rule 482 under the Securities Act relating to the
offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned
Registrant; and |
| (4) | any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser. |
| (4) | The Registrant undertakes that, for the purpose of determining any liability under the Securities Act of 1933, the information omitted
from the form of prospectus filed as part of the Registration Statement in reliance upon Rule 430A and contained in the form of prospectus
filed by the Registrant pursuant to Rule 424(b)(1) will be deemed to be a part of the Registration Statement as of the time
it was declared effective. |
The Registrant undertakes that, for the purpose of determining
any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus will be deemed to be
a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time will be deemed
to be the initial bona fide offering thereof.
| (5) | The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each
filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act
of 1934 that is incorporated by reference into the registration statement shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof. |
| (7) | The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery, within two business
days of receipt of a written or oral request, any Statement of Additional Information. |
SIGNATURES
Pursuant to the requirements of the
Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Fund has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Philadelphia and State of
Pennsylvania on the 6th day of February 2024.
| THE INDIA FUND, INC. |
| | |
| By: | /s/ Alan Goodson |
| | Alan Goodson |
| | Director and President |
Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
Signature |
|
Title |
|
Date |
/s/ Alan Goodson |
|
Director and President |
|
February 6, 2024 |
Alan Goodson |
|
(Principal Executive Officer) |
|
|
|
|
|
|
|
/s/ Sharon Ferrari |
|
Vice President and Treasurer |
|
February 6, 2024 |
Sharon Ferrari |
|
(Principal Financial and Accounting Officer) |
|
|
|
|
|
|
|
/s/ Nisha Kumar* |
|
Director |
|
February 6, 2024 |
Nisha Kumar |
|
|
|
|
|
|
|
|
|
/s/ Luis F. Rubio* |
|
Director |
|
February 6, 2024 |
Luis F. Rubio* |
|
|
|
|
|
|
|
|
|
/s/ Jeswald W. Salacuse* |
|
Director |
|
February 6, 2024 |
Jeswald W. Salacuse |
|
|
|
|
|
|
|
|
|
/s/ Nancy Yao* |
|
Director |
|
February 6, 2024 |
Nancy Yao |
|
|
|
|
*This filing has been signed by each of the persons so indicated by
the undersigned Attorney-in-Fact pursuant to powers of attorney filed herewith.
*By: |
/s/ Lucia Sitar |
|
|
Lucia Sitar |
|
|
Attorney-in-Fact pursuant to Powers of Attorney |
|
Exhibit 99.2(e)
Dividend Reinvestment and Optional Cash Purchase Plan
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 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.
Exhibit 99.2(g)
THE INDIA FUND, INC.
MANAGEMENT AGREEMENT
DATED AS OF DECEMBER
19, 2011
AGREEMENT
between The India Fund, Inc. (the "Fund"),
a Maryland corporation registered under the Investment Company Act of 1940, as
amended (the "1940 Act"),
and Aberdeen Asset Management Asia Limited, a
Singapore corporation (the "Investment Manager").
WHEREAS, the
Fund is a closed-end management investment company; and
WHEREAS, the Fund engages
in the business of investing its assets in the manner and in accordance with its stated current investment objective and restrictions;
WHEREAS,
the Fund desires to retain
the Investment Manager to furnish certain investment advisory services, as described herein;
WHEREAS, the Investment
Manager represents that it is willing and possesses legal authority to render such services subject to the terms and conditions set forth
in this Agreement.
Now,
THEREFORE, in consideration of the premises and mutual
covenants herein contained, the parties agree as follows:
1.1 The
Investment Manager will manage, in accordance with the Fund's
stated investment objective, policies
and limitations and subject to the supervision of the Fund's
Board of Directors, the
Fund's investments and will
make investment decisions on behalf of
the Fund including the selection of and placing of orders with brokers and dealers to execute portfolio transactions on behalf of the
Fund. The Investment Manager shall give the Fund the benefit of the Investment Manager's
best judgment and efforts in rendering services under this Agreement.
1.2 The
Fund will pay the Investment Manager a fee at the annual rate of (i) 1.10% of the Fund's
average weekly Managed Assets for the first $500 million of average weekly Managed Assets;
(ii) 0.90% for average weekly Managed Assets of the next $500 million; (iii) 0.85%
for average weekly Managed Assets of the next
$500 million; and
(iv) 0.75% for average weekly Managed Assets in excess of $1.5 billion. For purposes of this calculation, "Managed
Assets" of the Fund shall
mean total assets of the Fund, including
any assets attributable to investment leverage, minus
all liabilities, but not excluding
any liabilities or obligations attributable to leverage obtained by the Fund for investment purposes through (i) the issuance or
incurrence of indebtedness of any type (including, without
limitation, borrowing through a
credit facility or the issuance of debt securities), (ii) the
issuance of preferred stock or other similar preference securities, and/or
(iii) any other means, but
not including any collateral received for securities loaned by the Fund. Such compensation shall be determined at the end of each week
and payable at the end of each calendar month.
1.3 In
rendering the services required under this Agreement, the
Investment Manager may, at its expense, employ, consult
or associate with itself such person or persons as it believes necessary to assist it in carrying out its obligations under this Agreement.
However, the Investment Manager may not retain any person or company that would be an "investment
adviser," as that term
is defined in the 1940 Act, to the Fund unless (i) the Fund is a party to the contract with such person or company and (ii) such
contract is approved by a majority of the Fund's
Board of Directors and a majority
of Directors who are not parties
to any agreement or contract with such person or company and who are not "interested
persons," as defined in
the 1940 Act, of the Fund, the
Investment Manager, or any such
person or company retained by the Investment Manager, and is approved by the vote of a majority of the outstanding voting securities of
the Fund to the extent required by the 1940 Act.
2. Expenses.
The Investment Manager shall bear all expenses of its employees,
except as provided in the following sentence,
and overhead incurred in connection with its duties under this Agreement and shall
pay all salaries and fees of the Fund's
Directors and officers who are interested persons (as defined in the 1940 Act) of the Investment Manager or its affiliates. The Fund will
bear all of its own expenses, including: listing expenses; fees
of the Fund's Directors who
are not interested persons (as defined in the 1940 Act) of any other party; out-of-pocket
expenses for all Directors and officers of the Fund, including
travel expenses incurred by the Investment Manager's employees or employees of the Investment Manager's
affiliates, who serve as Directors
and officers of the Fund, or
a fraction thereof, to the extent
such expenses relate to attendance at meetings of Directors and shareholders; and other expenses incurred by the Fund in connection with
meetings of Directors and shareholders; interest expense; taxes and governmental fees including any original issue taxes or transfer taxes
applicable to the sale or delivery of shares or certificates therefor; brokerage commissions and other expenses incurred in acquiring
or disposing of the Fund's portfolio
securities; expenses in connection with the issuance, offering,
distribution, sale or underwriting
of securities issued by the Fund; expenses of registering and qualifying the Fund's
shares for sale with the Securities and Exchange Commission and in various states and foreign jurisdictions;
auditing, accounting, insurance
and legal costs; custodian,
dividend disbursing and transfer agent expenses;
and the expenses of shareholders'
meetings and of the preparation and distribution of proxies and reports to shareholders.
3. Best
Execution; Research
Services.
The Investment Manager is authorized,
for the purchase and sale of the Fund's
portfolio securities, to employ
such dealers and brokers as may, in
the judgment of the Investment Manager, implement
the policy of the Fund to obtain the best results, taking into account such factors as price, including dealer spread, the size,
type and difficulty of the transaction involved, the firm's
general execution and operational facilities and the firm's
risk in positioning the securities involved. Consistent with this policy, the
Investment Manager is authorized to direct the execution of the Fund's
portfolio transactions to dealers and brokers furnishing statistical information or research deemed by the Investment Manager to be useful
or valuable to the performance
of its investment advisory
functions for the Fund. It is understood that in these circumstances, as contemplated by Section 28(e) of the Securities Exchange
Act of 1934, as amended, the commissions paid may be higher than those which the Fund might otherwise have paid to another broker if those
services had not been provided.
Information so received will be in addition
to and not in lieu of the services required to be performed by the Investment Manager. It is understood that the expenses of the Investment
Manager will not necessarily be reduced as a result of the receipt of such information or research. Research services furnished to the
Investment Manager by brokers who effect securities transactions for the Fund may be used by the Investment Manager in servicing other
investment companies and accounts which it manages. Similarly, research services furnished to the Investment Manager by brokers who effect
securities transactions for other investment companies and accounts which the Investment Manager manages may be used by the Investment
Manager in servicing the Fund. It is understood that not all of these research services are used by the Investment Manager in managing
any particular account, including
the Fund.
4. Liability.
The Investment Manager shall not be liable for any error of judgment or for any
loss suffered by the Fund in connection with the matters to which this Agreement relates,
except a loss resulting from a breach of fiduciary duty with respect to receipt of
compensation for services (in which case any award of damages shall be limited to the period and the amount set forth in Section 36(b)(3) of
the 1940 Act) or a loss resulting from willful misfeasance, bad
faith or gross negligence on its part in the performance of, or
from reckless disregard by it of its obligations and duties under, this Agreement.
5. Services
Not Exclusive.
It is understood that the services of the Investment Manager are
not deemed to be exclusive, and
nothing in this Agreement shall prevent the Investment Manager or any affiliate, from providing similar services to other investment companies
and other clients (whether or not their investment objectives and policies are similar to those of the Fund) or from engaging in other
activities. When other clients of the Investment Manager desire to purchase or sell a security at the same time such security is purchased
or sold for the Fund, such purchases
and sales will be allocated among the Investment Manager's
clients, including the Fund, in a manner that is fair and equitable in the judgment of the Investment Manager in the exercise of its fiduciary
obligations to the Fund and to such other clients.
6. Duration
and Termination.
This Agreement shall be effective as of the date first above written
and continue for a two year period. Thereafter, the
Agreement shall continue for successive periods of twelve months, provided
that each such continuance shall be specifically approved annually by the vote of a majority of the Fund's
Board of Directors who are not parties to this Agreement or interested persons (as defined in the 1940 Act) of any such party,
cast in person at a meeting called for the purpose of voting on such approval and
either (a) the vote of a majority of the outstanding voting securities of the Fund, or (b) the vote of a majority of the Fund's
entire Board of Directors. Notwithstanding the foregoing, this Agreement may be terminated with respect to the Fund at any time, without
the payment of any penalty, by a vote of a majority of the Fund's
Board of Directors or a majority of the outstanding voting securities of the Fund upon at least sixty (60) days'
written notice to the Investment Manager or by the Investment Manager upon at least
ninety (90) days' written notice
to the Fund. This Agreement shall automatically terminate in the event of its assignment (as defined in the 1940 Act).
7. Representations of the Investment
Manager. The Investment Manager represents and warrants that
it is duly registered as an investment adviser with the U.S. Securities and Exchange Commission under the Investment Advisers Act of
1940, as amended, and
holds all other registrations, licenses,
authorizations, permits, and permissions necessary to conduct its activities hereunder, including
a Capital Markets Services License issued by with the Monetary Authority of Singapore, and will promptly advise the Fund of any
change or prospective change in the status of those registrations.
8. Proxy
Voting. The Investment
Manager may exercise or procure the exercise of any voting
rights or other powers and discretion conferred on the registered holder or the beneficial owner of any securities in the Fund.
9. Miscellaneous.
9.1 This
Agreement shall be construed in accordance with the laws of the State of New York, provided that nothing herein shall be construed as
being inconsistent with the 1940 Act and any rules, regulations
and orders thereunder.
9.2 This
Agreement may not be amended by either party hereto without the prior written consent of the other party.
9.3 Any
notice hereunder shall be in writing and shall be delivered in person, by
facsimile or electronic mail to the parties at the addresses set forth below:
If to the Fund:
The India Fund, Inc.
c/o
Aberdeen Asset Management Inc.
1735 Market Street, 32nd
Floor
Philadelphia, PA 19103
Attn: Legal
Tel: 215-405-5700
Fax: 866-291-5760
E-mail: legal.us@aberdeen-asset.com
If to the Investment Manager:
Aberdeen
Asset Management Asia Limited
21 Church Street, #01-01
Capital Square Two
Singapore 049480
Attn:
Legal
Tel: +65
6395 2700
Fax: +65
6538 1308
Email:
legal.singapore@aberdeen-asset.com
With a copy to:
Aberdeen Asset Management Inc.
1735 Market Street, 32nd
Floor
Philadelphia,
PA 19103
Attn: Legal
Tel: 215-405-5700
Fax: 866-291-5760
E-mail: legal.us@aberdeen-asset.com
Or to such other
address as to which the recipient shall have informed the other party in writing or
by electronic mail from time to time.
9.4 The
captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise
affect their construction or effect.
9.5 If
any provision of this Agreement shall be held or made invalid by a court decision, statute,
rule or otherwise, the remainder of this Agreement shall not be affected thereby
and, to that extent, the provisions of this Agreement shall be
deemed to be severable.
9.6 Nothing
herein shall be construed as constituting the Investment Manager an agent of the Fund.
9.7 This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be
one and the same agreement. A signed copy
of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be
deemed to have the same legal effect as delivery of an original signed copy of this
Agreement.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective as of the
day and year first above written.
|
THE INDIA FUND, INC. |
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|
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By: |
/s/ Jennifer A. Nichols |
|
Name: Jennifer
A. Nichols |
|
Title: Vice
President |
|
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|
|
|
ABERDEEN ASSET
MANAGEME TASIA LIMITED |
|
|
|
By: |
/s/ Chong Yoon Chou |
|
Name: Chong
Yoon Chou |
|
Title: Director |
|
|
|
By: |
/s/ Low Hon-Yu |
|
Name: Low
Hon-Yu |
|
Title: Director |
Exhibit 99.2(j)(2)
FORM
OF
AMENDMENT TO MASTER CUSTODIAN AGREEMENT
THIS AMENDMENT TO
THE MASTER CUSTODIAN AGREEMENT (the “Amendment”), effective as of March 5, 2014, by and among the funds that are
parties to the Master Custodian Agreement dated as of June 1, 2010, as amended (the “Agreement”) as listed on
Appendix A, which shall be amended from time to time (the “Fund Parties”), and STATE STREET BANK AND TRUST COMPANY, a
Massachusetts trust company (the “Custodian”).
WITNESSETH:
WHEREAS, the Fund Parties and Custodian are parties
to the Agreement; and
WHEREAS, Fund and
Custodian desire to amend and supplement the Agreement upon the following terms and conditions.
NOW THEREFORE, for
and in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Fund Parties and Custodian hereby agree that the Agreement is amended and supplemented as follows:
| 1. | Section 2.6 of the Agreement is hereby amended to read: |
“SECTION 2.6 PAYMENT OF FUND MONIES. The Custodian
shall pay out monies of a Portfolio as provided in Section 5 and otherwise upon receipt of Proper Instructions signed by an authorized
person on behalf of the applicable Portfolio, which may be continuing instructions when deemed appropriate by the parties. Proper Instructions
for the payment of fund expenses or extraordinary cash movements greater than $50,000 must be signed by two (2) authorized persons on
behalf of the applicable Portfolio. The Custodian shall pay out monies of a Portfolio in the following cases only:”
[Note: the subsections that follow remain unchanged]
| 2. | General Provisions. This Amendment will at
all times and in all respects be construed, interpreted, and governed by the laws of The Commonwealth of Massachusetts, without giving
effect to the conflict of laws provisions thereof. This Amendment may be executed in any number of counterparts, each constituting an
original and all considered one and the same agreement. This Amendment is intended to modify and amend the Agreement and the terms of
this Amendment and the Agreement are to be construed to be cumulative and not exclusive of each other. Except as provided herein, the
Agreement is hereby ratified and confirmed and remains in full force and effect. |
[The remainder of the page has been left blank
intentionally.]
IN WITNESS WHEREOF, the parties have caused this Amendment to
be executed by their duly authorized officers to be effective as of the date first above written.
STATE STREET BANK AND TRUST COMPANY |
|
FUND PARTIES, as listed on Appendix A in the Agreement, as amended from time to time |
|
|
|
|
|
|
By: |
/s/ Michael F. Rogers |
|
By: |
/s/ Lucia Sitar |
Name: |
Michael F. Rogers |
|
Name: |
Lucia Sitar |
Title: |
Executive Vice President |
|
Title: |
Vice President |
Exhibit 99.2(k)(1)
Transfer Agency and Service Agreement
Between
Each of the Aberdeen Closed-End Funds
Listed on Schedule A
and
Computershare Trust Company, N.A.
and
Computershare Inc.
THIS AGREEMENT effective as of the 23rd day
of July, 2010 by and between each of the Aberdeen Closed-End Funds listed herein on Schedule A attached hereto, which Schedule may be
amended from time to time, each a corporation having its principal office and place of business at 1735 Market Street, 32nd Floor,
Philadelphia, PA 19103 (each a “Company” and collectively, the “Companies”), and Computershare Inc., a Delaware
corporation, and its fully owned subsidiary Computershare Trust Company, N.A., a federally chartered trust company, having its principal
office and place of business at 250 Royall Street, Canton, Massachusetts 02021 (collectively, the “Transfer Agent” or individually,
“Computershare” and the “Trust Company”, respectively).
WHEREAS, each Company desires to appoint Trust
Company as sole transfer agent and registrar, and administrator of its dividend reinvestment plan or direct stock purchase plan, and Computershare
as processor of all payments received or made by the Company under this Agreement;
WHEREAS, Trust Company and Computershare will each
separately provide specified services covered by this Agreement and, in addition, Trust Company may arrange for Computershare to act on
behalf of Trust Company in providing certain of its services covered by this Agreement; and
WHEREAS, Trust Company and Computershare desire
to accept such respective appointments and perform the services related to such appointments;
NOW THEREFORE, in consideration of the mutual covenants
herein contained, the parties hereto agree as follows:
1. CERTAIN
DEFINITIONS.
1.1 “Account”
shall mean the account of each Shareholder which reflects any full or fractional Shares held by such Shareholder, outstanding funds, or
reportable tax information.
1.2 “Agreement”
shall mean this agreement and any and all exhibits or schedules attached hereto and any and all amendments or modifications which may
from time to time be executed.
1.3 “Plans”
shall mean any Dividend Reinvestment, Direct Stock Purchase, or other investment programs administered for a Company.
1.4 “Services”
shall mean all services performed or made available by Transfer Agent pursuant to this Agreement.
1.5 “Share”
shall mean a Company’s common stock, par value $0.001 per share for Aberdeen Global Income Fund, Inc., and par value $0.01
per share for the Aberdeen Australia Equity Fund, Inc. and Aberdeen Asia-Pacific Income Fund, Inc., authorized by the Company’s
Articles of Incorporation, and other classes of the Company’s stock to be designated by the Company in writing and which Transfer
Agent agrees to service under this Agreement.
1.6 “Shareholder”
shall mean the holder of record of Shares of a Company.
1.7 “Shareholder
Data” shall mean all information maintained on the records database of Transfer Agent concerning Shareholders.
2. APPOINTMENT
OF AGENT.
2.1 Appointments.
Each Company hereby appoints Trust Company to act as sole transfer agent and registrar for all Shares and as administrator of Plans in
accordance with the terms and conditions hereof and appoints Computershare as the service provider to Trust Company and as processor of
all payments received or made by or on behalf of the Company under this Agreement, and Trust Company and Computershare accept the respective
appointments. Transfer Agent is engaged in an independent business and will perform its obligations under this Agreement as an agent
of the Company.
2.2 Documents.
In connection with the appointments herein, each Company has provided or will provide the following appointment and corporate authority
documents to Transfer Agent:
(a) Copies
of resolutions appointing Trust Company as the transfer agent;
(b) Specimens
of all forms of outstanding Share certificates, in forms approved by the Board of Directors of the Company, with a certificate of the
Secretary of Company as to such approval;
(c) Specimens
of the signatures of the officers of the Company authorized to sign stock certificates and authorized to sign written instructions and
requests;
(d) An
opinion of counsel for the Company addressed to both Trust Company and Computershare with respect to the following:
(i) Company’s
organization and existence under the laws of its state of organization;
(ii) The
status of all Shares of the Company covered by the appointment under the Securities Act of 1933, as amended (the “1933 Act”),
and any other applicable federal or state statute; and
(iii) That
all issued Shares are, and all unissued Shares will be, when issued, validly issued, fully paid and non-assessable; and
(e) A
certificate of the Company as to the Shares authorized, issued and outstanding, as well as a description of all reserves of unissued
Shares relating to the exercise of options.
2.3 Records.
Transfer Agent may adopt as part of its records all Shareholders lists, Share ledgers, records, books, and documents which have been employed
by a Company or any of its agents and which are certified to be true, authentic and complete. Transfer Agent shall keep records
relating to the Services, in the form and manner it deems advisable. Transfer Agent agrees that all such records prepared or maintained
by it relating to the Services are the property of the Company and will be preserved, maintained and made available in accordance with
the requirements of law, and will be surrendered promptly to the Company in accordance with its request.
2.4 Company
Audit. Transfer Agent shall, upon reasonable written notice and at mutually agreed times, allow a Company, its auditors and/or
its regulators, to inspect, examine, test and audit (each, an “Audit”) Transfer Agent’s operations, procedures and
business records that are relevant to the Services provided hereunder by Transfer Agent. Notwithstanding the foregoing, Transfer Agent
may, in its sole discretion, prohibit a Company from entering certain areas of its facilities for security reasons, in which case Transfer
Agent will provide the Company with alternative access to the records, documents, other information or personnel in such restricted area,
to the extent reasonably possible. Transfer Agent shall cooperate reasonably and in good faith with the Company’s auditors to ensure
a prompt and accurate Audit. Each Company acknowledges that Transfer Agent may require any such auditors and/or regulators of the Company
to agree to confidentiality provisions relating to Transfer Agent’s proprietary and confidential information that such auditors
and/or regulators may have access to during any such Audit. Each Company agrees to compensate Transfer Agent for all reasonable out of
pocket expenses incurred in connection with any Audit, and also agrees to compensate Transfer Agent, in accordance with the Transfer
Agent fee schedule in effect at the time such Audit, for the time of each Transfer Agent employee required to assist such Audit; provided,
however, that in no event shall the Company be charged for the time incurred by Transfer Agent’s Relationship Management employees
required to assist such Audit.
2.5 Shares.
Each Company shall, if applicable, inform Transfer Agent as soon as possible in advance as to (i) the existence or termination of
any restrictions on the transfer of Shares, the application to or removal from any stock certificate of any legend restricting the transfer
of such Shares, or the substitution for such certificate of a certificate without such legend; (ii) any authorized but unissued Shares
reserved for specific purposes; (iii) any outstanding Shares which are exchangeable for Shares and the basis for exchange; (iv) reserved
Shares subject to option and the details of such reservation; (v) any stock split or stock dividend; (vi) any other relevant
event or special instructions which may affect the Shares; and (vii) any bankruptcy, insolvency or other proceeding regarding the
Company affecting the enforcement of creditors’ rights.
2.6 Certificates.
Each Company shall provide Transfer Agent with (i) documentation required to print on demand stock certificates, or (ii) an
appropriate supply of stock certificates which contain a signature panel for use by an authorized signor of Transfer Agent and state that
such certificates are only valid after being countersigned and registered, whichever is applicable.
2.7 Company
Responsibility. Each Company shall perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged
and delivered all such further and other acts, documents, instruments and assurances as may be reasonably required by Transfer Agent for
the carrying out or performing by Transfer Agent of the provisions of this Agreement.
3. STANDARD
SERVICES.
3.1 Share
Services. Transfer Agent shall perform the Share Services set forth in the Fee and Service Schedule (“Fee and Service
Schedule”) attached hereto and incorporated herein. Further, Transfer Agent shall issue and record Shares as authorized, hold
Shares in the appropriate Shareholder Account, and effect transfers of Shares upon receipt of appropriate documentation.
3.2 Replacement
Shares. Transfer Agent shall issue replacement Shares for those certificates alleged to have been lost, stolen or destroyed,
upon receipt by Transfer Agent of an open penalty surety bond satisfactory to it and holding it and the applicable Company harmless, absent
notice to Transfer Agent that such certificates have been acquired by a bona fide purchaser. Transfer Agent may, at its option,
issue replacement Shares for mutilated stock certificates upon presentation thereof without such indemnity. Transfer Agent may,
at its sole option, accept indemnification from the Company to issue replacement Shares for those certificates alleged to have been lost,
stolen or destroyed in lieu of an open penalty bond.
3.3 Internet
Services. Transfer Agent shall make available to the Companies and Shareholders, through www.computershare.com (“Web
Site”), online access to certain Account and Shareholder information and certain transaction capabilities (“Internet
Services”), subject to Transfer Agent’s security procedures and the terms and conditions set forth herein and on the Web
Site. Transfer Agent provides Internet Services “as is,” on an “as available” basis, and hereby
specifically disclaims any and all representations or warranties, express or implied, regarding such Internet Services, including
any implied warranty of merchantability or fitness for a particular purpose and implied warranties arising from course of dealing or
course of performance.
3.4 Proprietary
Information. Each Company agrees that the databases, programs, screen and report formats, interactive design techniques, software
(including methods or concepts used therein, source code, object code, or related technical information) and documentation manuals furnished
to the Company by Transfer Agent as part of the Services are under the control and ownership of Transfer Agent or a third party (including
its affiliates) and constitutes copyrighted, trade secret, or other proprietary information (collectively, “Proprietary Information”).
In no event shall Proprietary Information be deemed Shareholder Data. Each Company agrees that Proprietary Information is of substantial
value to Transfer Agent or other third party and will treat all Proprietary Information as confidential in accordance with Section 10
of this Agreement. Each Company shall take reasonable efforts to advise its employees and agents of its obligations pursuant to
this Section 3.4.
3.5 Third
Party Content. Transfer Agent may obtain certain data included in the Services from third parties, which were selected by the
Transfer Agent in good faith and in the absence of negligence or willful misconduct. Such third parties are solely responsible for the
contents of such data and each Company agrees to make no claim against Transfer Agent arising out of the contents of such data, including,
but not limited to, the accuracy thereof.
3.6 Compliance
with Laws. Transfer Agent is obligated and agrees to comply with all applicable U.S. federal, state and local laws and regulations,
codes, orders and government rules in the performance of its duties under this Agreement.
4. DIVIDEND
REINVESTMENT PLAN SERVICES.
4.1 The
Trust Company shall perform all services under the Plans, as the administrator of such Plans, with the exception of payment processing
for which Computershare has been appointed as agent by a Company, and certain other services that the Trust Company may subcontract to
Computershare as permitted by applicable law (e.g. ministerial services).
4.2 The
Transfer Agent shall act as agent for Shareholders pursuant to the Plans in accordance with the terms and conditions of such Plans.
5. COMPUTERSHARE
DIVIDEND DISBURSING AND PAYMENT SERVICES.
5.1 Declaration
of Dividends. Upon receipt of written notice from the President, any Vice President, Secretary, Assistant Secretary, Treasurer
or Assistant Treasurer of a Company declaring the payment of a dividend, Computershare shall disburse such dividend payments provided
that in advance of the applicable check mailing date, the Company furnishes Computershare with sufficient funds. The payment of
such funds to Computershare for the purpose of being available for the payment of dividends from time to time is not intended by the Companies
to confer any rights in such funds on Shareholders whether in trust, contract, or otherwise.
5.2 Stop
Payments. Each Company hereby authorizes Computershare to stop payment of checks issued in payment of dividends or for sales
proceeds, but not presented for payment, when the payees thereof allege either that they have not received the checks or that such checks
have been mislaid, lost, stolen, destroyed or, through no fault of theirs, are otherwise beyond their control and cannot be produced
by them for presentation and collection, and Computershare shall issue and deliver duplicate checks in replacement thereof, and Company
shall indemnify Transfer Agent against any loss or damage resulting from reissuance of the checks so long as Transfer Agent has acted
in accordance with the terms of this Agreement with respect to Section 8.3.
5.3 Tax
Withholding. Each Company hereby authorizes Computershare to deduct from all dividends declared by the Company and disbursed
by Computershare, as dividend disbursing agent, the tax required to be withheld pursuant to Sections 1441, 1442 and 3406 of the Internal
Revenue Code of 1986, as amended, or by any federal or state statutes subsequently enacted, and to make the necessary return and payment
of such tax in connection therewith.
5.4 Plan
Payments. Each Company hereby authorizes Computershare to receive all payments made to the Company (i.e. optional cash purchases)
or the Transfer Agent under the Plans and make all payments required to be made under such Plans, including all payments required to be
made to the Company.
5.5 Bank
Accounts. Any money deposited in bank accounts maintained by Computershare in connection with the Services shall be held in
segregated accounts held solely for the benefit of each Company and the money shall not be commingled with the money, assets or properties
of Computershare or any other person, firm or corporation. Accrued interest on a Company’s cash held in such an account will
be used to offset any bank fees associated with the account.
6. FEES
AND EXPENSES.
6.1 Fee
and Service Schedules. Each Company agrees to pay Transfer Agent the fees and out-of-pocket expenses for Services performed
pursuant to this Agreement as set forth in the Fee and Service Schedule, for the initial term of the Agreement (the “Initial Term”).
Such fees and reimbursable expenses may be changed from time to time subject to mutual written agreement between the a Company and Transfer
Agent.
6.2 Conversion
Funds. If applicable, conversion funding required by any out of proof condition caused by a prior agent’s services shall
be advanced to Transfer Agent prior to the commencement of Services.
6.3 Invoices.
Each Company agrees to pay all fees and reimbursable expenses within 30 days of the date of the respective billing notice, except for
any fees or expenses that are subject to good faith dispute. In the event of such dispute, the Company must promptly notify Transfer Agent
of such dispute and may only withhold that portion of the fee or expense subject to such dispute. The Company shall settle such
disputed amounts within five (5) business days of the date on which the parties agree on the amount to be paid by payment of the
agreed amount. If no agreement is reached, then such disputed amounts shall be settled as may be required by law or legal process.
6.4 Late
Payments.
(a) If
any undisputed amount in an invoice of Transfer Agent (for fees or reimbursable expenses) is not paid within 30 days after receipt of
such invoice, the applicable Company shall pay Transfer Agent interest thereon (from the due date to the date of payment) at a per annum
rate equal to eighteen percent (18%). Notwithstanding any other provision hereof, such interest rate shall be no greater than permitted
under applicable law.
(b) The
failure by a Company to pay an invoice within 90 days after receipt of such invoice, except with respect to any amount subject to a good
faith dispute, shall constitute a material breach pursuant to Section 11.4 below. Transfer Agent may terminate this Agreement
with respect to the applicable Company for such material breach upon 10 business days’ written notice of such proposed termination
to the Company.
7. REPRESENTATIONS
AND WARRANTIES.
7.1 Transfer
Agent. Transfer Agent represents and warrants to Company that:
(a) Governance.
Trust Company is a federally chartered trust company duly organized, validly existing, and in good standing under the laws of the United
States and Computershare is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware
and each has full power, authority and legal right to execute, deliver and perform this Agreement; and
(b) Compliance
with Laws. The execution, delivery and performance of this Agreement by Transfer Agent has been duly authorized by all necessary
action and constitutes the legal, valid and binding obligation of Transfer Agent enforceable against Transfer Agent in accordance with
its terms and will not violate, conflict with or result in the breach of any material term, condition or provision of, or require the
consent of any other party to (i) any existing law, ordinance, or governmental rule or regulation to which Transfer Agent is
subject, (ii) any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental or regulatory official,
body or authority applicable to Transfer Agent, (iii) Transfer Agent’s incorporation documents or by-laws, or (iv) any
material agreement to which Transfer Agent is a party.
7.2 Company.
Each Company represents and warrants to Transfer Agent that:
(a) Governance.
It is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland, and it has full power,
authority and legal right to enter into and perform this Agreement;
(b) Compliance
with Laws. The execution, delivery and performance of this Agreement by a Company has been duly authorized by all necessary
action and constitutes the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its
terms and will not violate, conflict with or result in the breach of any material term, condition or provision of, or require the consent
of any other party to (i) any existing law, ordinance, or governmental rule or regulation to which Company is subject, (ii) any
judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental or regulatory official, body or authority
applicable to Company, (iii) Company’s incorporation documents or by-laws, (iv) any material agreement to which Company
is a party, or (v) exchange rules; and
(c) Securities
Act of 1933. A registration statement under the 1933 Act was filed and became effective, or will be effective prior to the sale
of any Shares, and will remain so effective, and a II appropriate state securities law filings have been made with respect to all
Shares being offered for sale except for any Shares which are offered in a transaction or series of transactions which are exempt from
the registration requirements of the 1933 Act and state securities laws; a Company will immediately notify Transfer Agent of any information
to the contrary.
8. INDEMNIFICATION
AND LIMITATION OF LIABILITY.
8.1 Company
Indemnity. Each Company, severally and not jointly, shall indemnify and hold Transfer Agent harmless from and against, and Transfer
Agent shall not be responsible for, any and all losses, claims, damages, costs, charges, counsel fees and expenses, payments, expenses
and liability relating to that Company (collectively, “Losses”) arising out of or attributable to:
(a) all
actions of Transfer Agent or its agents or subcontractors required to be taken pursuant to this Agreement provided such actions are taken
in good faith and without negligence or willful misconduct;
(b) the
Company’s lack of good faith, negligence or willful misconduct or the breach of any representation or warranty of Company hereunder;
(c) The
reliance on or use by Transfer Agent or its agents or subcontractors of any (i) information, records, data, and documents which
have been prepared and/or maintained by a Company or any other person or firm on behalf of the Company, including any former transfer
agent or registrar, and provided to Transfer Agent or its agents or subcontractors; (ii) paper or document reasonably believed to
be genuine and to have been signed by the proper person or persons, including Shareholders and their authorized agents or representatives
(e.g. power of attorney); and (iii) electronic instructions from a Company or Shareholders and their authorized agents or representatives
(e.g. power of attorney) submitted through Internet Services or any other electronic means pursuant to security procedures established
by Transfer Agent.
(d) The
negotiation and processing of all checks, including checks that are tendered to Transfer Agent for the purchase of Shares, provided such
actions are taken in good faith and without negligence or willful misconduct; and
(e) The
recognition, acceptance, or processing by Transfer Agent of stock certificates which are reasonably believed to bear the proper manual
or facsimile signatures of officers of Company, and the proper countersignature of any former transfer agent or former registrar, or
of a co-transfer agent or co-registrar, provided such actions are taken in good faith and without negligence or willful misconduct.
Transfer Agent agrees that it will look only to the assets and property
of a particular Company in asserting any rights or claims under this Agreement with respect to Services rendered with respect to that
Company and will not seek to obtain settlement of such rights or claims from the assets and property of any other Company.
8.2 Instructions.
From time to time, a Company may provide Transfer Agent with instructions concerning the Services. In addition, at any time Transfer Agent
may apply to any officer of a Company for instruction, and may consult with legal counsel for the Company with respect to any matter arising
in connection with the Services to be performed by the Transfer Agent under this Agreement. Transfer Agent and its agents and subcontractors
shall not be liable and shall be indemnified by the Company for any action taken or omitted by Transfer Agent in good faith and in reliance
upon any Company instructions or upon the advice or opinion of such counsel. Transfer Agent shall not be held to have notice of any change
of authority of any person, until receipt of written notice thereof from the Company.
8.3 Transfer
Agent Indemnification/Limitation of Liability. Transfer Agent shall be responsible for and shall indemnify and hold each Company
harmless from and against any and all Losses arising out of or attributable to: (a) Transfer Agent’s or its agents’
refusal or failure to comply with the terms of this Agreement, (b) Transfer Agent’s bad faith, negligence or willful misconduct,
or (c) Transfer Agent’s, or its agents’, breach of any representation or warranty hereunder, in each case for which
Transfer Agent is not entitled to indemnification under this Agreement; provided, however, that excluding Transfer Agent’s gross
negligence, bad faith and willful misconduct Transfer Agent’s aggregate liability during any term of this Agreement with respect
to, arising from, or arising in connection with this Agreement, or from all Services provided or omitted to be provided under this Agreement,
whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, three (3) times the amounts paid hereunder by
all Companies to Transfer Agent as fees and charges, but not including reimbursable expenses of any Company, during the twelve (12) months
immediately preceding the event for which recovery from Transfer Agent is being sought.
8.4 Notice.
In order that the indemnification provisions contained in this Section 8 shall apply, upon the assertion of a claim for which one
party may be required to indemnify the other, the party seeking indemnification shall promptly notify the other party of such assertion,
and shall keep the other party advised with respect to all developments concerning such claim. The indemnifying party shall have the option
to participate with the indemnified party in the defense of such claim or to defend against said claim in its own name or the name of
the indemnified party. The indemnified party shall in no case confess any claim or make any compromise in any case in which the indemnifying
party may be required to indemnify it except with the indemnifying party’s prior written consent.
9. DAMAGES.
No party shall be liable for any incidental, indirect, special or consequential damages of any nature whatsoever, including, but not limited
to, loss of anticipated profits, occasioned by a breach of any provision of this Agreement even if apprised of the possibility of such
damages.
10. CONFIDENTIALITY.
10.1 Definition.
“Confidential Information” shall mean any and all technical or business information relating to a party, including, without
limitation, financial, marketing and product development information, Shareholder information (including any non-public information of
such Shareholder), Proprietary Information, and the terms and conditions (but not the existence) of this Agreement, that is disclosed
or otherwise becomes known to the other party or its affiliates, agents or representatives before or during the term of this Agreement.
Confidential Information constitutes trade secrets and is of great value to the owner (or its affiliates). Confidential Information
shall not include any information that is: (a) already known to the other party or its affiliates at the time of the disclosure;
(b) publicly known at the time of the disclosure or becomes publicly known through no wrongful act or failure of the other party;
(c) subsequently disclosed to the other party or its affiliates on a non-confidential basis by a third party not having a confidential
relationship with the owner and which rightfully acquired such information; or (d) independently developed by one party without access
to the Confidential Information of the other.
10.2 Use
and Disclosure. All Confidential Information of a party will be held in confidence by the other party with at least the same
degree of care as such party protects its own confidential or proprietary information of like kind and import, but not less than a reasonable
degree of care. Neither party will disclose in any manner Confidential Information of the other party in any form to any person
or entity without the other party’s prior consent. However, each party may disclose relevant aspects of the other party’s
Confidential Information to its officers, affiliates, agents, subcontractors and employees to the extent reasonably necessary to perform
its duties and obligations under this Agreement and such disclosure is not prohibited by applicable law. Without limiting the foregoing,
each party will implement such physical and other security measures and controls as are necessary to protect (a) the security and
confidentiality of Confidential Information; (b) against any threats or hazards to the security and integrity of Confidential Information;
and (c) against any unauthorized access to or use of Confidential Information. To the extent that a party delegates any duties and
responsibilities under this Agreement to an agent or other subcontractor, the party ensures that such agent and subcontractor are contractually
bound to confidentiality terms consistent with the terms of this Section 10.
10.3 Required
or Permitted Disclosure. In the event that any requests or demands are made for the disclosure of Confidential Information,
other than requests to Transfer Agent for Shareholder records pursuant to standard subpoenas from state or federal government authorities
(e.g., divorce and criminal actions), the party receiving such request will promptly notify the other party to secure instructions from
an authorized officer of such party as to such request and to enable the other party the opportunity to obtain a protective order or other
confidential treatment, unless such notification is otherwise prohibited by law or court order. Each party expressly reserves the
right, however, to disclose Confidential Information to any person whenever it is advised by counsel that it may be held liable for the
failure to disclose such Confidential Information or if required by law or court order.
10.4 Unauthorized
Disclosure. As may be required by law and without limiting any party’s rights in respect of a breach of this Section 10,
each party will promptly:
(a) notify,
the other party in writing of any unauthorized possession, use or disclosure of the other party’s Confidential Information by any
person or entity that may become known to such party;
(b) furnish
to the other party full details of the unauthorized possession, use or disclosure; and
(c) use
commercially reasonable efforts to prevent a recurrence of any such unauthorized possession, use or disclosure of Confidential Information.
10.5 Costs.
Each party will bear the costs it incurs as a result of compliance with this Section 10.
11. TERM
AND TERMINATION.
11.1 Term.
The Initial Term of this Agreement shall be one (1) year from the date first stated above unless terminated pursuant to the provisions
of this Section 11. This Agreement will renew automatically from year to year (each a “Renewal Term”), unless terminating
party gives written notice to the other party not less than ninety (90) days before the expiration of the Initial Term or Renewal Term,
whichever is in effect, or the Agreement is otherwise terminated pursuant to the provisions of this Section 11.
11.2 Early
Termination. Notwithstanding anything herein to the contrary, should a Company terminate this Agreement prior to the expiration
of the then current Initial or Renewal Term, for any reason, including but not limited to, its liquidation, acquisition, merger or restructuring,
the Company shall pay to Transfer Agent (a) the fees and expenses incurred as of the termination date, and (b) conversion costs
and expenses in accordance with Section 11.3 of this Agreement. If a Company does not provide notice at least ninety (90) days
prior to termination, Transfer Agent shall make a good faith effort, but cannot guarantee, to convert the Company’s records on the
date requested by Company. This Section 11.2 shall not apply if Transfer Agent is terminated pursuant to Sections 11.4 or 12 of this
Agreement.
11.3 Costs
and Expenses. In the event of the expiration or termination of this Agreement by either party, Company agrees to pay all reasonable
out-of-pocket costs and expenses associated with the movement of records and materials to a Company or the successor agent.
11.4 Termination.
This Agreement may be terminated at any time by any party upon a material breach of a representation, covenant or term of this Agreement
by any other party provided that, except with respect to a payment breach as described in Section 6.4, the non-breaching party gives
written notice of such breach to the breaching party and the breaching party does not cure such violation within a period not to exceed
ninety (90) days after the date of written notice thereof by one of the other parties.
12. ASSIGNMENT.
Neither this Agreement nor any rights or obligations hereunder may he assigned by a Company or Transfer Agent without the written consent
of the other party; provided, however, that Transfer Agent may, without further consent of the Companies, assign any of its rights and
obligations hereunder to any affiliated transfer agent registered under Rule 17Ac2-1 promulgated under the Securities Exchange Act
of 1934, as amended. Transfer Agent shall provide a Company with written notice of such an assignment and, upon receipt of such
notice, the Company may terminate the Agreement upon sixty (60) days written notice. The provisions of Section 11.2 shall not
apply to such a termination.
13. SUBCONTRACTORS
AND UNAFFILIATED THIRD PARTIES.
13.1 Subcontractors.
Transfer Agent may, without further consent of a Company, subcontract with (a) any affiliates, or (b) unaffiliated subcontractors
for such services as may be required from time to time (e.g. lost shareholder searches, escheatment, telephone and mailing services);
provided, however, that Transfer Agent shall be as fully responsible to the Company for the acts and omissions of any subcontractor as
it is for its own acts and omissions. Transfer Agent shall provide Company each year, upon request, and otherwise upon reasonable
request, with a list of its unaffiliated subcontractors who have access to Company’s Shareholder Data.
13.2 Unaffiliated
Third Parties. Nothing herein shall impose any duty upon Transfer Agent in connection with or make Transfer Agent liable for
the actions or omissions to act of unaffiliated third parties (other than subcontractors referenced in Section 13.1 of this Agreement)
such as, by way of example and not limitation, airborne services, delivery services, the U.S. mails, and telecommunication companies,
provided, if Transfer Agent selected such company, Transfer Agent exercised due care in selecting the same.
14. MISCELLANEOUS.
14.1 Notices.
Any notice or communication by Transfer Agent or a Company to the other pursuant to this Agreement is duly given if in writing and delivered
in person or sent by overnight delivery service or first class mail, postage prepaid, to the other’s address:
If to Company: |
Aberdeen Asset Management Inc. |
|
1735 Market Street |
|
32nd Floor |
|
Philadelphia, PA 19103 |
|
Attention: Legal Department |
|
|
If to Transfer Agent: |
Computershare Trust Company, N.A. |
|
250 Royall Street |
|
Canton, MA 02021 |
|
Attn: General Counsel |
14.2 No
Expenditure of Funds. No provision of this Agreement shall require Transfer Agent to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it shall believe
in good faith that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.
14.3 Successors.
All the covenants and provisions of this Agreement by or for the benefit of a Company or Transfer Agent shall bind and inure to the benefit
of their respective permitted successors and assigns hereunder.
14.4 Amendments.
This Agreement may be amended or modified by a written amendment executed by the parties hereto and, to the extent required, authorized
by a resolution of the Board of Directors of a Company.
14.5 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provision, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.
14.6 Governing
Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts.
14.7 Force
Maieure. Notwithstanding anything to the contrary contained herein, Transfer Agent shall not be liable for any delays or failures
in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage
of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical
difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest; provided however, that Transfer
Agent shall have taken commercially reasonable efforts to minimize the likelihood of occurrence of such circumstances or to mitigate any
loss or damage to a Company caused by such circumstances.
14.8 Third
Party Beneficiaries. The provisions of this Agreement are intended to benefit only Transfer Agent, the Companies and their respective
permitted successors and assigns. No rights shall be granted to any other person by virtue of this Agreement, and there are no third
party beneficiaries hereof.
14.9 Survival.
All provisions regarding indemnification, warranty, liability and limits thereon, and confidentiality and protection of proprietary rights
and trade secrets shall survive the termination or expiration of this Agreement.
14.10 Priorities.
In the event of any conflict, discrepancy, or ambiguity between the terms and conditions contained in this Agreement and any schedules
or attachments hereto, the terms and conditions contained in this Agreement shall take precedence.
14.11 Merger
of Agreement. This Agreement constitutes the entire agreement between the parties hereto and supersedes any prior agreement
with respect to the subject matter hereof, whether oral or written.
14.12 No
Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the
event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by all parties
hereto, and no presumption or burden or proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.
14.13 Descriptive
Headings. Descriptive headings contained in this Agreement are inserted for convenience only and shall not control or affect
the meaning or construction of any of the provisions hereof.
14.14 Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically
shall have the same authority, effect, and enforceability as an original signature.
(The remainder of page intentionally left blank.]
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed by one of its officers thereunto duly authorized, all as of the date first written above.
|
|
Aberdeen Australia Equity Fund, Inc. |
Computershare Inc. |
|
Aberdeen Asia-Pacific Income Fund, Inc. |
Computershare Trust Company, N. A. |
|
Aberdeen Global Income Fund, Inc. |
|
|
|
On Behalf of Both Entities: |
|
|
|
|
|
|
|
|
By: |
/s/ Dennis V. Moccia |
|
By: |
/s/ Jennifer A. Nichols |
|
|
|
|
Name: |
Dennis V. Moccia |
|
Name: |
Jennifer Nichols |
|
|
|
|
Title: |
Manager, contract Administration |
|
Title: |
Vice President |
[SIGNATURE PAGE TO TRANSFER AGENCY AND SERVICE
AGREEMENT]
SCHEDULE A
Aberdeen Australia Equity Fund, Inc.
Aberdeen Asia-Pacific Income Fund, Inc.
Aberdeen Global Income Fund, Inc.
Exhibit 99.2(k)(3)
Ninth Amendment to Transfer
Agency and Service Agreement
THIS NINTH AMENDMENT (“Amendment”), effective after
market close on October 27, 2023 (“Effective Date”), is to the Transfer Agency and Service Agreement made as
of July 23, 2010, as amended, (the “Agreement”) by and between each of the abrdn Australia Equity Fund, Inc.,
abrdn Asia-Pacific Income Fund, Inc., abrdn Global Income Fund, Inc., abrdn Japan Equity Fund, Inc., abrdn Income Credit
Strategies Fund, The India Fund, Inc., abrdn Global Dynamic Dividend Fund, abrdn Global Premier Properties Fund, abrdn Total Dynamic
Dividend Fund, abrdn Standard Global Infrastructure Income Fund, abrdn National Municipal Income Fund, , (each, a “Company”
and collectively, the “Companies”) and Computershare Trust Company, N.A. and its affiliate, Computershare Inc., (collectively,
the “Transfer Agent”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms
in the Agreement.
WHEREAS, each Company and the Transfer Agent
are parties to the Agreement; and
WHEREAS, each Company and the
Transfer Agent desire to amend the Agreement upon the terms and conditions set forth herein;
NOW THEREFORE, for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1. Addition of
Parties and Amendment to Schedule A of the Agreement. Schedule A of the Agreement is hereby amended to include the
following: abrdn Healthcare Investors, abrdn Life Sciences Investors, abrdn Healthcare Opportunities Fund, and abrdn World Healthcare
Fund, each added to the Agreement as a “Company” for all purposes.
2. Limited Effect. Except as expressly
modified herein, the Agreement shall continue to be and shall remain, in full force and effect and the valid and binding obligation of
the parties thereto in accordance with its terms.
3. Counterparts. This Amendment may
be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. A signature to this Amendment executed and/or transmitted electronically
shall have the same authority, effect, and enforceability as an original signature.
[The remainder of page intentionally
left blank.]
IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be executed by their respective officers, hereunto duly agreed and authorized, as of the Effective Date.
Computershare Trust Company, N.A.
Computershare
Inc.
On Behalf of Both Entities
By: |
/s/ Dennis V. Moccia |
|
Name: |
Dennis V. Moccia |
|
Title: |
Senior Manager, Contract Operations |
|
abrdn
Asia-Pacific Income Fund, Inc.
abrdn
Australia Equity Fund, Inc.
abrdn
Global Income Fund, Inc.
The India
Fund, Inc.
abrdn
Japan Fund, Inc.
abrdn Income Credit Strategies Fund
abrdn Global Dynamic Dividend Fund
abrdn Global
Premier Properties Fund
abrdn Total Dynamic Dividend Fund
abrdn Standard Global Infrastructure Income Fund
abrdn Income Credit Strategies Fund – Preferred Shares
abrdn National Municipal Income Fund*
abrdn Healthcare Investors*
abrdn Life Sciences Investors*
abrdn Healthcare Opportunities Fund*
abrdn World Healthcare Fund*
By: |
/s/ Lucia Sitar |
|
Name: |
Lucia Sitar |
|
Title: |
Vice President |
|
*The Fund is governed by a Declaration of Trust, as amended from time
to time, which is on file with the Secretary of The Commonwealth of Massachusetts, and notice is hereby given that no trustee, officer,
employee, agent, employee or shareholder of the Fund shall have any personal liability under this Agreement, and that this Agreement
is binding only upon the assets and property of the applicable Fund, individually and not jointly with any other Fund, person or entity.
SCHEDULE A
abrdn
Asia-Pacific Income Fund, Inc.
abrdn
Australia Equity Fund, Inc.
abrdn
Global Income Fund, Inc.
The India
Fund, Inc.
abrdn
Japan Equity Fund, Inc.
abrdn
Income Credit Strategies Fund
abrdn Global Dynamic Dividend Fund
abrdn
Global Premier Properties Fund
abrdn Total Dynamic Dividend Fund
abrdn
Standard Global Infrastructure Income Fund
abrdn Income Credit
Strategies Fund – Preferred Shares
abrdn
National Municipal Income Fund
abrdn Healthcare Investors
abrdn Life Sciences Investors
abrdn Healthcare Opportunities Fund
abrdn World Healthcare Fund
Exhibit 99.2(k)(5)
AMENDED and RESTATED INVESTOR RELATIONS
SERVICES AGREEMENT
Amended and Restated Investor Relations Agreement
(the “AGREEMENT”) effective as of the date of approval by each Fund’s Board of Directors/Trustees and amends and restates,
in its entirety, the Amended and Restated Investor Relations Services Agreement dated September 5, 2018 between the registered closed-end
investment companies listed on Schedule A (hereinafter referred to collectively as the “Funds” and, individually, as a “Fund”)
and abrdn Inc. (hereinafter referred to as “AI”).
| 1. | AI agrees, during the term of this Agreement, to provide or arrange for a third party to provide investor relations and secondary
market support services for the Funds. These services may from time to time include the following or other services, as AI in its discretion
considers appropriate, to enhance the visibility of the Funds and encourage investment in the Funds by retail and institutional investors: |
Core Service: Plan Participation and
Promotion
| · | Product specific literature promoting closed-end funds, to seek to drive traffic to website and increase fund awareness; |
| · | Attendance at industry conferences; |
| · | Coordinate and promote investor/analyst roadshows; |
| · | Develop and maintain an Educational Thought Leadership Program via whitepapers or podcasts; |
| · | Develop and distribute press releases to shareholders on special issues and post to the respective Fund’s website; |
| · | Coordinate the preparation and distribution of the quarterly investor relations Board reports; |
| · | Coordinate the preparation of semi-annual Board reports on the strategic plan and delivery of the marketing activities, including
such information as the Board of Directors/Trustees may reasonably request; |
| · | Produce advertising campaigns; |
| · | Build and maintain a database of targeted email lists for distribution of Fund information and related education to enhance visibility
of the Funds. |
Closed-End Fund Distribution and Investor Relations
| · | Prepare and distribute quarterly manager commentary reports and monthly factsheets; |
| · | Participate in industry closed-end fund forums; |
| · | Coordinate and participate in regional roadshows to brokers with the portfolio managers and/or client service representatives; |
| · | Coordinate meetings with members of relevant associations and/or membership organizations; |
| · | Distribute to media sources: |
| · | Periodic dividend releases; |
| · | Fund data factsheets: daily closed-end fund metrics uploaded to the Funds’ websites; |
| · | Releases on extraordinary topics, including, but not limited to, results of annual meetings, market events, and major factors affecting
the Funds; |
| · | Manage shareholder and broker toll-free telephone services and electronic mail communications for the Funds; |
| · | Provide third-party news and information services with monthly updates on price, net asset value, total assets, holdings and dividend
information; |
| · | Conduct statistical analysis and research on closed-end funds and investor perception and implement findings into investor communications
and market planning strategies. |
| · | Create and maintain targeted websites. |
| 2. | The Funds agree, during the term of this Agreement, to pay into an account overseen by AI, on a quarterly basis in arrears, the fees
reflected in the fee schedule included at Schedule B (the “Investor Relations Account”). Fees under the Agreement may be changed
upon mutual agreement of the parties to the Agreement. Amounts in the Investor Relations Account may be used by AI solely to compensate
third parties who provide or assist AI with providing one or more of the services detailed in Section 1 of this Agreement. AI does
not receive compensation for its services under this Agreement and shall not be entitled to retain any amount in the Investor Relations
Account. |
| 3. | In coordinating the services with third parties under this Agreement, AI may enter into written agreements with such third parties
and pay the third parties out of the Investor Relations Account. AI shall be responsible for monitoring and overseeing the performance
by such third parties of their obligations under any such written agreement. |
| 4. | AI shall provide quarterly reports to the Funds’ Boards. At least annually, AI shall provide a report of services provided hereunder.
At the request of the Boards, AI shall provide a report showing payments made to third parties under this Agreement, as well as the services
provided by such third parties and a summary of contributions and expenditures out of the Investor Relations Account. |
| 5. | AI agrees to preserve the confidentiality of all non-public information provided to AI by the Funds or their agents, or information
developed by AI based upon such non- public information. AI shall not disclose such information except when required to do so pursuant
to court order, subpoena, or other judicial process. Non-public information shall not include information which (a) was or becomes
generally available to the public other than as a result of a disclosure by AI or its directors, officers, employees, agents or advisors;
(b) was available to the public prior to its disclosure to AI by the Funds or their representatives; (c) becomes available to
AI on a non-confidential basis from a source other than the Funds or their representatives, provided that such source is not known by
AI (i) to be subject to a confidentiality agreement with the Funds or another party with respect to the information or (ii) to
be subject to an obligation, by statute or common law, to maintain
the confidentiality of the information; or (d) is independently developed by AI. |
| 6. | For each Fund, the Agreement shall continue in effect for a Fund from year to year, provided such continuance is approved annually
by the Board of Directors/Trustees of the Fund. |
| 7. | This Agreement may be terminated by either party on sixty (60) days’ written notice, without payment of penalty, provided that
such termination by a Fund shall be approved by the vote of a majority of the Directors/Trustees of the Fund. During said sixty (60) day
notice period, the parties shall continue to perform all of their obligations under this Agreement. In addition, the Agreement may be
terminated at any time upon a material breach by the other party hereto. The termination of this Agreement by any one Fund shall not affect
the continuation of the Agreement for any other Fund. |
| 8. | Each Fund hereby acknowledges that AI shall rely upon the accuracy of all information provided by the Fund or its agents to it. Each
Fund assumes full and complete responsibility and liability for the financial and other information furnished to AI for its use on the
Fund’s behalf under this Agreement (other than information provided by AI, any AI affiliate or agent) and each Fund shall indemnify
and hold harmless AI from and against any demands, claims, or liability relating thereto. Each Fund shall pay AI any amounts payable by
AI in settlement of any claims or in satisfaction of any judgments resulting from AI’s use of any financial or other information
furnished by the Fund in connection with the services rendered by AI hereunder (other than information provided by AI, any AI affiliate
or agent), together with all costs and expenses incurred in connection therewith, including, without limitation, reasonable attorney’s
fees and costs of litigation. Without limiting the foregoing, each Fund shall reimburse AI for all costs and expenses, including reasonable
attorney’s fees, incurred in responding to any subpoena or other court process in any action or proceeding or investigation in which
the Fund or its affiliates are a party or are otherwise involved. Notwithstanding the above, a Fund shall not be liable for, and shall
be indemnified by AI against, any loss, claim, damage or liability which was the direct result of AI’s or its affiliates’
or agent’s wilful misfeasance, bad faith, negligence or reckless disregard of its duties under this Agreement. The provisions of
this paragraph shall survive the expiration or termination of this Agreement. |
| 9. | This Agreement may be amended with respect to a Fund only on the written consent of all parties. Changes to Schedule A to add or remove
a Fund and recalculations of Schedule B to determine fees payments will not require written consent of all parties. |
| 10. | This Agreement shall be interpreted according to and governed by the laws of the State of Pennsylvania. |
| 11. | A waiver by either party of any breach, act or omission of the other party is not deemed to be a waiver of any subsequent similar
breach, act or omission. |
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their authorized officers as of the date first set forth above.
|
ON BEHALF OF THE FUNDS INCLUDED IN SCHEDULE A |
|
|
|
|
|
By: |
/s/ Lucia Sitar |
|
|
Name: |
Lucia Sitar |
|
|
Title: |
Vice President |
|
|
|
ABRDN INC. |
|
|
|
|
|
By: |
/s/ Lucia Sitar |
|
|
Name: |
Lucia Sitar |
|
|
Title: |
Vice President |
Schedule A
Participating Funds
abrdn Asia-Pacific Income Fund, Inc. (FAX)
abrdn Australia Equity
Fund, Inc. (IAF)
abrdn Global Income Fund, Inc. (FCO)
abrdn Emerging Markets Equity Income Fund, Inc. (AEF)
The India Fund, Inc. (IFN)
abrdn Japan Equity Fund, Inc. (JEQ)
abrdn Income Credit Strategies Fund (ACP)
abrdn Global Premier Properties
Fund (AWP)
abrdn Global Dynamic Dividend Fund (AGD)
abrdn Total Dynamic Dividend Fund (AOD)
abrdn Global Infrastructure Income Fund (ASGI)
abrdn National Municipal Income Fund (VFL)
Exhibit 99.2(r)(1)
CODE OF ETHICS (PERSONAL TRADING)
Rule 17j-1(b) under
the Investment Company Act of 1940, as amended (the “1940 Act”), makes it unlawful for any affiliated person, officer or Board
member of the Funds in connection with the purchase or sale by such person of a Security (as defined below) “held or to be acquired”
by the Funds:
| 1. | To employ any device, scheme or artifice to defraud the Funds; |
| 2. | To make to the Funds any untrue statement of a material fact or omit to state to the Funds a material
fact necessary in order to make the statement made, in light of the circumstances under which they are made, not misleading; |
| 3. | To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit
upon the Funds; or |
| 4. | To engage in any manipulative practice with respect to the Funds’ investment portfolios. |
| II. | Purpose of the Code of Ethics |
The Funds expect that the
officers and Fund Board members will conduct their personal investment activities in accordance with (1) the duty at all times to
place the interests of the Funds’ shareholders first; (2) the requirement that all personal Securities transactions be conducted
consistent with this Code of Ethics and in such a manner as to avoid any actual or potential conflict of interest or any abuse of an individual’s
position of trust and responsibility; and (3) the fundamental standard that investment company personnel should not take inappropriate
advantage of their positions.
In view of the foregoing,
the provisions of Section 17(j) of the 1940 Act, Rule 17j-1 under the 1940 Act, and various pronouncements by the Securities
and Exchange Commission (“SEC”) and the Investment Company Institute on personal investing by investment company personnel,
1 the Funds have adopted this Code of Ethics
to specify a code of conduct for certain types of personal Securities transactions that might involve conflicts of interest or an appearance
of impropriety, and to establish reporting requirements and enforcement procedures. This Code does not attempt to identify all possible
conflicts of interest, and literal compliance with each of its specific provisions will not shield Fund personnel from liability for personal
trading or other conduct that violates a fiduciary duty to Fund shareholders.
This Code of Ethics does not
apply to any officer, Board member or employee of the Funds who is also an Access Person or Investment Personnel (as defined under Rule 17j-1
under the 1940 Act) employed by the Funds’ investment adviser, investment sub-advisers or principal underwriter (“Excluded
Advisory Personnel”). Those individuals are covered by the Codes of Ethics that have been adopted by their respective entities and
approved by the Board of each of the Funds in accordance with the provisions of Rule 17j-1 of the 1940 Act.
1 |
See Investment Adviser Code of Ethics, SEC Release No. IC-26492 (July 9, 2004); Personal Investment Activities of Investment Company Personnel, SEC Release No. IC-23958 (August 24, 1999); Personal Investment Activities of Investment Company Personnel, Report by the Securities and Exchange Commission (September 1994); and Report of the Advisory Group on Personal Investing, Investment Company Institute (May 9, 1994). |
| A. | “Access Person” means (1) each Board member or officer of the Funds; and
(2) any Advisory Person of the Funds except Excluded Advisory Personnel. |
| B. | “Advisory Person” means (1) each Board member, officer, general partner
or employee of the Funds (or of any company in a control relationship to the Funds) who in connection with his or her regular functions
or duties, makes, participates in, or obtains information regarding the purchase or sale of a Reportable Security (as defined below) by
the Funds or whose functions relate to the making of any recommendations with respect to such purchases or sales; and (2) any natural
person in a control relationship to the Funds who obtains information concerning recommendations made to the Funds with regard to the
purchase or sale of a Reportable Security by the Funds. |
| C. | “Automatic Investment Plan” means a program in which regular periodic purchases
(or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An
Automatic Investment Plan includes a dividend reinvestment plan. |
| D. | “Beneficial Ownership” shall be interpreted in the same manner as it would be
in determining whether a person is considered a “beneficial owner” as defined in Rule 16a-1(a)(2) under the Securities
Exchange Act of 1934, as amended (“1934 Act”), which generally speaking, encompasses those situations where the beneficial
owner has the right to enjoy some economic benefit from the ownership of the Reportable Security. You will be treated as a “beneficial
owner” of a Security under this Code only if you have a direct or indirect pecuniary interest in the Security. A direct pecuniary
interest is the opportunity, directly or indirectly, to profit, or to share the profit, from the transaction. An indirect pecuniary interest
is any nondirect financial interest, but is specifically defined in the rules to include, among other things, Securities held by
members of your immediate family sharing the same household; Securities held by a partnership of which you are a general partner; Securities
held by a trust of which you are the settlor if you can revoke the trust without the consent of another person, or a beneficiary if you
have or share investment control with the trustee; and equity Securities which may be acquired upon exercise of an option or other right,
or through conversion. For interpretive guidance on this test, you should consult your counsel. A person is normally regarded as the beneficial
owner of Reportable Securities held in the name of his or her spouse or minor children and adults living in his or her household. |
| E. | “Control” shall have the same meaning as set forth in Section 2(a)(9) of
the 1940 Act. Generally, control is the power to exercise a controlling influence over the management or policies of a company unless
such power is solely the result of an official position with such company. |
| F. | “Exempt Transactions”
means: (1) purchases or sales effected in any account over which an Access Person or Investment Personnel has no direct or indirect
influence or control; (2) purchases or sales which are non-volitional2
on the part of the Access Person, Investment Personnel or the Funds; (3) purchases which are part of an Automatic
Investment Plan; or (4) purchases effected upon the exercise of rights issued by an issuer pro-rata to all holders of a class of
its Reportable Securities, to the extent such rights were acquired from such issuer, and sales of such rights so acquired. |
2 |
Non-volitional purchases or sales include those transactions, which do not involve a willing act or conscious decision on the part of the Board Member, officer or employee. For example, shares received or disposed of by Access Persons or Investment Personnel in a merger, recapitalization or similar transaction are considered non-volitional. |
| G. | A Security is “held or to be acquired” if within the most recent 15 days it
(1) is or has been held by the Funds, (2) is being or has been considered by the Funds or the investment adviser or investment
sub-adviser for purchase by the Funds or (3) any option to purchase or sell and any Security convertible into or exchangeable for
a Reportable Security that is described in (1) or (2) of this definition. |
| H. | An Access Person’s “immediate family” means a spouse, minor children and
adults living in the same household as the Access Person. |
| I. | “Independent Board Member” means each Board member who is not an “interested
person” of the Funds (as defined in Section 2(a)(19) of the 1940 Act) and who would be required to make a report under Section V
of this Code solely by reason of being a Board member of the Funds. |
| J. | An “Initial Public Offering” means an offering of Securities registered under
the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of
Sections 13 or 15(d) of the 1934 Act. |
| K. | “Investment Personnel” of the Funds means (1) any employee of the Funds
(or of any company in a control relationship to the Funds) who, in connection with his or her regular functions or duties, makes or participates
in making recommendations regarding the purchase or sale of Securities by the Funds or (2) any natural person who controls the Funds
and who obtains information concerning recommendations made to the Funds regarding the purchase or sale of Securities by the Funds. |
| L. | A “Limited Offering” means an offering that is exempt from registration under
the Securities Act of 1933 pursuant to Section 4(2) or Section 4(6) or pursuant to Rule 504, Rule 505, or
Rule 506 under the Securities Act of 1933. |
| M. | “Purchase or sale of a Reportable Security” includes, among other things, the
writing of an option to purchase or sell a Reportable Security. |
| N. | “Reportable Security” means a Security excluding (1) direct obligations
of the Government of the United States; (2) banker’s acceptances; (3) bank certificates of deposit; (4) commercial
paper; (5) high quality short-term debt instruments (any instrument having a maturity at issuance of less than 366 days and that
is rated in one of the two highest rating categories by a nationally recognized statistical rating organization), including repurchase
agreements; and (6) shares of registered open-end investment companies other than those advised by an abrdn Adviser. |
| O. | “Security” means a security as defined in Section 2(a)(36)of the 1940 Act
which is defined as any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest
or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable
share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas,
or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any
group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege
entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known
as a “security,” or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee
of, or warrant or right to subscribe to or purchase, any of the foregoing. |
| IV. | Policies of the Funds Regarding Personal Securities Transactions |
No Access Person of the Funds
shall engage in any act, practice or course of business that would violate the provisions of Rule 17j-1(b) set forth above,
or in connection with any personal investment activity, engage in conduct inconsistent with this Code of Ethics.
| 1. | Restrictions on Personal Securities Transactions by Independent Board Members |
|
|
The Funds recognize that an Independent Board Member does not have on-going, day-to-day interaction with the operations of the Funds. In addition, it has been the practice of the Funds to give information about Securities purchased or sold by the Funds or considered for purchase or sale by the Funds to Independent Board Members in materials circulated more than 15 days after such Securities are purchased or sold by the Funds or are considered for purchase or sale by the Funds. Accordingly, the Funds believe the following controls are appropriate for Independent Board Members: |
| a. | Personal Account Dealing in Fund Shares. Independent Board Members are prohibited from buying or selling
Fund shares during the two week period prior to or following Board meetings. The Fund CCO may waive this prohibition in exceptional circumstances
and upon a determination that the transaction does not violate any applicable laws or regulations. The Fund CCO will document any such
waivers. |
| b. | Limited Pre-clearance. The Securities pre-clearance requirement contained in IV.B.2. below shall only
apply to an Independent Board Member if he or she knew that during the fifteen day period before the proposed transaction in a Reportable
Security (other than Exempt Transactions) or at the time of the transaction that the Reportable Security to be purchased or sold by him
or her (other than Exempt Transactions) was also purchased or sold by the Fund(s) or considered for the purchase or sale by the Fund(s) (i) for
which such Independent Board Member acts as a Director or Trustee or (ii) whose Board meetings or other informational meetings where
specific confidential Fund information is discussed that the Independent Board Member attends. |
| c. | Pre-clearance Not Granted. When the securities pre-clearance requirement applies to an Independent Board
Member, no clearance will be given to the Independent Board Member to purchase or sell any Reportable Security (1) on a day when
any Fund has a pending “buy” or “sell” order in that same Reportable Security until that order is executed or
withdrawn or (2) when the Funds’ Chief Compliance Officer has been advised by the Funds’ investment adviser or investment
sub-adviser that the same Reportable Security is being considered for purchase or sale for any Fund. |
| 2. | Restrictions on Initial Public Offering or Limited Offering Personal Securities Transactions by Access
Persons Who Are Not Independent Board Members |
| a. | Pre-clearance. An Access Person who is not an Independent Board Member is prohibited from buying or selling
any Security through an Initial Public Offering or a Limited Offering for his or her personal portfolio or the portfolio of a member of
his or her immediate family without obtaining (i) email or other written authorization or (ii) oral authorization from a Funds
Chief Compliance Officer prior to effecting such Reportable Security transaction. |
|
|
A written authorization for such Security transaction will be provided by the Funds’ Chief Compliance Officer or his/her delegate to the person receiving the oral authorization (if granted). The written authorization will also be provided to the Funds’ administrator to memorialize the email and oral authorization that was granted. |
|
|
Note: If an Access Person has questions as to whether
purchasing or selling a Reportable Security for his or her personal portfolio or the portfolio of a member of his or her immediate
family requires prior oral authorization, the Access Person should consult the Funds’ Chief Compliance Officer for clearance
or denial of clearance to trade prior to effecting any Reportable Securities transition. |
| b. | Pre-clearance Expiration. Pre-clearance approval will expire at the close of business on the trading day
after the date on which written or oral authorization is received, and the Access Person is required to renew clearance for the transaction
if the trade is not completed before the authority expires. |
| c. | Pre-clearance Not Granted. No pre-clearance will be given to purchase or sell any Reportable Security
(1) on a day when any Fund has a pending “buy” or “sell” order in that same Reportable Security until that
order is executed or withdrawn or (2) when the Funds’ Chief Compliance Officer has been advised by the Funds’ investment
adviser or investment sub-adviser that the same Reportable Security is being considered for purchase or sale for any Fund. |
| 3. | Additional Restrictions on Investment Personnel |
| a. | Gifts. No investment personnel shall receive any gift or other thing of more than de minimis value
from any person or entity that does business with or on behalf of the Funds. |
| b. | Board Service. Investment Personnel shall not serve on the boards of directors of publicly traded companies
absent prior authorization by the Funds’ Chief Compliance Officer. |
| V. | Procedures – Initial Holdings Reports, Annual Holdings Reports and Quarterly Transaction Reports |
| A. | In order to provide the Funds with information to enable it to determine with reasonable assurance whether
the provisions of this Code of Ethics are being observed by its Access Persons: |
| 1. | Independent Board Members |
| a. | Holdings Reports Not Required – Each Independent Board Member need not make initial or annual holdings
reports. |
| b. | Limited Quarterly Transaction Reporting – An Independent Board Member must submit the same quarterly
transaction report as required under paragraph V.A.2.d below to the Chief Compliance Officer of the Funds, but only for a transaction
in a Reportable Security where he or she knew at the time of the transaction or, in the ordinary course of fulfilling his or her official
duties as an Independent Board Member, should have known that during the 15-day period immediately preceding or after the date of the
transaction, such Reportable Security is or was purchased or sold, or considered by the Funds, its investment adviser or investment sub-adviser
for purchase or sale by the Fund (i) for which such Independent Board Member acts as a Director or Trustee or (ii) whose Board
meetings or other informational meetings where specific confidential Fund information is discussed that the Independent Board Member attends.
An Independent Board Member need not make a quarterly transaction report with respect to transactions effected for, and Reportable Securities
held in, any account over which the Independent Board Member has no direct or indirect influence or control. |
| 2. | Access Persons Who Are Not Independent Board Members |
| a. | Initial Holdings Reports – Each Access Person who is not an Independent Board Member will submit
to the Chief Compliance Officer or his/her designee of the Funds an Initial Holdings Report in the form attached hereto as Exhibit A
that lists all Reportable Securities in which the Access Person has Beneficial Ownership. |
| (i) | The Initial Holdings Report must be submitted within ten days of becoming an Access Person and must contain
information current as of a date no more than 45 days prior to becoming an Access Person. |
| (ii) | The Initial Holdings Report must include the title of each Reportable Security, the number of shares held
(for equity securities), the principal amount (for debt securities) of each Reportable Security, the date the report is submitted as well
as a list of any Securities accounts maintained with any broker, dealer or bank in which any Securities were held for the direct or indirect
benefit of the Access Person as of the date the person became an Access Person of the Funds. |
| (iii) | An Access Person need not include in the report transactions effected for, and Reportable Securities held
in, any account over which the Access Person has no direct or indirect influence or control. |
| (iv) | The report may contain a statement that the report shall not be construed as an admission by the person
making such report that he or she has any direct or indirect beneficial ownership in the Reportable Security to which the report relates. |
| b. | Annual Holdings Reports – Each Access Person of the Funds who is not an Independent Board Member
will also submit to the Chief Compliance Officer or his/her designee of the Funds an Annual Holdings Report attached hereto as Exhibit A
no later than 30 days after the end of the calendar year. |
| (i) | The information contained in the Annual Holdings Report must be current as of a date no more than 45 days
before the report is submitted. |
| (ii) | The Annual Holdings Report must list all Reportable Securities in which the Access Person has Beneficial
Ownership, the title of each Reportable Security, the number of shares held (for equity securities), the principal amount (for debt securities)
of the Reportable Security, and the date the report is submitted. The Report must also list any Securities accounts maintained with any
broker, dealer or bank in which any Securities were held for the direct or indirect benefit of the Access Person. |
| (iii) | An Access Person need not include in the report transactions effected for, and Reportable Securities held
in, any account over which the Access Person has no direct or indirect influence or control. |
| (iv) | The report may contain a statement that the report shall not be construed as an admission by the person
making such report that he or she has any direct or indirect beneficial ownership in the Reportable Security to which the report relates. |
| c. | Securities Confirmations – Each Access Person of the Funds who is not an Independent Board Member
shall direct his or her broker to supply to a Chief Compliance Officer or his/her designee of the Funds, on a timely basis, duplicate
copies of confirmation of all personal Securities transactions and copies of periodic statements for all Securities accounts in which
the Access Person has Beneficial Ownership. |
| d. | Quarterly Transaction Reports – Each Access Person of the Funds who is not an Independent Board
Member shall submit reports in the form attached hereto as Exhibit B to the Chief Compliance Officer or his/her designee of
the Funds, showing all transactions in Reportable Securities in which the person has, or by reason of such transaction acquires, any direct
or indirect Beneficial Ownership, as well as all accounts established with brokers, dealers or banks during the quarter in which any Securities
were held for the direct or indirect beneficial interest of the Access Person. |
| (i) | Quarterly transaction reports shall be filed no later than 30 days after the end of each calendar quarter. |
| (ii) | The report shall include (a) the date of the transaction, (b) the title of the Reportable Security,
(c) the interest rate and maturity date (if applicable), (d) the number of shares (for equity securities), (e) the principal
amount of each Reportable Security involved; (f) the nature of the transaction (i.e., purchase, sale or any other type of acquisition
or disposition), (g) the price at which the transaction was effected, (h) the name of the broker, dealer or bank with or through
whom the transaction was effected; and (i) the date the report is submitted. In addition, with respect to any account established
by the Access Person in which any Reportable Securities were held during the quarter for the direct or indirect benefit of the Access
Person, the Access Person shall report the following information: (a) the name and address of the broker, dealer or bank with whom
the Access Person established the account; (b) the date the account was established; and (c) the date the report is submitted. |
| (iii) | An Access Person of the Funds need not make a quarterly transaction report with respect to (a) transactions
effected pursuant to an Automatic Investment Plan, (b) a transaction if all of the information required by paragraph (ii) above
is contained in the brokerage confirmations or account statements required to be submitted under paragraph (c) above, and (c) transactions
effected for, and Reportable Securities held in, any account over which the Access Person has no direct or indirect influence or control. |
| (iv) | The report may contain a statement that the report shall not be construed as an admission by the person
making such report that he or she has any direct or indirect beneficial ownership in the Reportable Security to which the report relates. |
| 3. | Identification of Access Persons – The Chief Compliance Officer or his/her designee of the
Funds shall notify each Access Person of the Funds who may be subject to the pre-clearance requirement or required to make reports pursuant
to this Code of Ethics that such person is subject to the pre-clearance or reporting requirements and shall deliver a copy of this Code
of Ethics to each such person. |
| 4. | Compliance Review – The Chief Compliance Officer or his/her designee of the Funds shall (i) with
regard to any Access Persons or Investment Personnel reporting directly under this Code of Ethics, review any initial holdings reports,
annual holdings reports, and quarterly transaction reports that are received by the Chief Compliance Officer or his/her designee under
this Code of Ethics, and as appropriate compare the reports with the pre-clearance authorization received; (ii) with regard to any
Excluded Advisory Personnel reporting under a Code of Ethics of the Funds’ investment adviser, sub-advisers or principal underwriter,
quarterly contact the compliance officer of such investment adviser, sub-advisers or principal underwriter regarding the compliance of
such Access Persons or Investment Personnel with their Code of Ethics and (iii) report to the Funds’ Board: (a) with respect
to any transaction that appears to evidence a violation of this Code or the investment adviser’s, sub-advisers’ or principal
underwriter’s Codes of Ethics; and (b) violations of the reporting requirement stated in such Codes of Ethics. |
| 5. | Board Review – The Board shall review the operation of this Code of Ethics at least once
a year. |
| 6. | Service Provider Code of Ethics – The investment adviser, any investment sub-advisers and
the principal underwriter shall adopt, maintain and enforce a separate code of ethics with respect to their personnel in compliance with
Rule 17j-1 of the 1940 Act and Rule 204A-1 of the Investment Advisers Act of 1940, as applicable. Any material changes to the
investment adviser’s, investment sub-adviser’s or principal underwriter’s code will be approved by the Board no later
than six months after such change. |
| 7. | Board Reporting – At each quarterly Board meeting, the Chief Compliance Officer of the Funds’
investment adviser, any investment sub-adviser and the principal underwriter of the Funds shall provide a written report to the Funds’
Board stating: |
| a. | any reported Securities transaction that occurred during the prior quarter that materially violated (either
individually or in the aggregate) the provisions of the code of ethics adopted by the investment adviser, any investment sub-adviser or
principal underwriter; and |
| b. | all disciplinary actions3
taken in response to such violations. |
| 8. | Annual Reports – At least once a year, the Funds’ Chief Compliance Officer shall provide
to the Board a written report that contains any previously reported material violations of the code or procedures and sanctions imposed
in response to material violations, any recommended changes in the code or procedures, and a certification that the procedures which have
been adopted are those reasonably necessary to prevent Access Persons (as defined under Rule 17j-1) from violating their respective
Codes of Ethics. The written report will also include an assessment of the effectiveness of the Service Providers’ Codes of Ethics
outlined in Section 6 above. |
| 9. | Recordkeeping – This Code, the codes of the investment adviser, any investment sub-adviser and principal underwriter,
a copy of each report by an Access Person, any record of any violation of this Code of Ethics and any action taken as a result thereof,
any written report hereunder by the Chief Compliance Officer of the investment adviser, investment sub-adviser or the principal underwriter,
records of approvals relating to Initial Public Offerings and Limited Offerings, lists of all persons required to make reports and a list
of all persons responsible for reviewing such reports shall be preserved with the Funds’ records for the period required by Rule 17j-1
of the 1940 Act. |
IV. Certification
Each Access Person, including
an Independent Board Member, will be required to certify annually that he or she has read and understood this Code of Ethics, and will
abide by it. Each Access Person, including an Independent Board Member, will further certify that he or she has disclosed or reported
all personal Securities transactions required to be disclosed or reported under the Code of Ethics. Certification of compliance with the
Code of Ethics by an Independent Board Member will occur annually.
3 |
Disciplinary action includes but is not limited to any action that has a material financial effect upon the employee, such as fining, suspending, or demoting the employee, imposing a substantial fine or requiring the disgorgement of profits. |
Code of Ethics
Exhibit A
HOLDINGS REPORT
For the Year/Period Ended ____________________________
(Month/day/year)
¨ Check here if this is an Initial Holdings
Report
To: ______________,
as the Chief Compliance Officer of [Name of abrdn Fund]
From: ____________________________________
As of the calendar year/period
referred to above, I have a direct or indirect beneficial ownership interest in the Securities listed below which are required to
be reported pursuant to the Code of Ethics of the Funds.
Title of Security |
Number of Shares |
Principal Amount |
|
|
|
|
|
|
|
|
|
The name and address of any
broker, dealer or bank with whom I maintain an account in which my Securities are held for my direct or indirect benefit are as follows.
For Initial Holdings Reports:
This report contains information current as of a date no more than 45 days prior to the date of becoming an Access Person.
For Annual Holdings Reports:
This report contains information current as of a date no more than 45 days before the report is submitted.
This report (i) excludes
transactions with respect to which I had no direct or indirect influence or control, (ii) excludes other transactions not required
to be reported and (iii) is not an admission that I have or had any direct or indirect beneficial ownership in the Securities listed
above.
Code of Ethics
Exhibit B
QUARTERLY SECURITIES TRANSACTION REPORT
For the Calendar Quarter Ended ______________________________
(month/day/year)
To: ______________,
Chief Compliance Officer
From: ___________________________________
During the quarter referred
to above, the following transactions were effected in Securities of which I had, or by reason of such transaction acquired, direct or
indirect beneficial ownership, and which are required to be reported pursuant to the Code of Ethics of the Funds:
Security |
Date of
Transaction |
Number
of
Shares |
Principal
Amount |
Interest
Rate and
Maturity
Rate (if
applicable) |
Nature of
Transaction
(Purchase,
Sale, or
Other) |
Price |
Broker/Dealer
or Bank
Though Whom
Effected |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the quarter referred
to above, I established the following accounts in which Securities were held during the quarter for my direct or indirect benefit:
Name and address of the broker, dealer or bank
with which I established the account. |
The date the account was established. |
|
|
|
|
|
|
This report (i) excludes
transactions with respect to which I had no direct or indirect influence or control, (ii) excludes other transactions not required
to be reported, and (iii) is not an admission that I have or had any direct or indirect beneficial ownership in the Securities listed
above.
Date: ________________ |
Signature: ____________________ |
Exhibit 99.2(r)(2)
Access
Person Code of Conduct
January 1,
2021
Complying with the
Access Person Code
Everyone who works for
abrdn plc is required to follow the principles contained in the Global Code of Conduct. In addition, there are a number of supplementary
requirements for people who have access to sensitive client or portfolio information. These additional requirements are set out in this
Access Person Code of Conduct (“Access Person Code”). Each Access Person must receive a copy of the Access Person Code and
any amendments and must confirm they have received, read and understood the Access Person Code and any amendments when they join the
firm and at least annually thereafter.
Access Persons include:
| ● | abrdn employees, contractors and
secondees to abrdn who have access to certain clients’ trading information (see Definition
section for regulatory definition). |
| ● | anyone else who has been advised
by Risk and Compliance that they have been deemed to be an ‘Access Person’. |
All Access Persons must:
| ● | Act with integrity, competence,
dignity and in an ethical manner when dealing with the public, clients, prospects, employers,
employees and fellow professionals. |
| ● | Use an affirmative duty of care,
loyalty, honesty and good faith in complying with our fiduciary duties towards clients. |
| ● | Act for the benefit of our clients
and place client interests before our own. |
| ● | Treat all clients fairly; never
act in such a way as to grant, or appear to grant, favoured status to one client over another. |
| ● | Comply with all relevant US federal
securities laws, as applicable. |
| ● | Report any violations of the Access
Person Code to Compliance. |
| ● | Submit timely, in true and complete
form, all reports as required in the Access Person Code. |
| ● | Adhere to all provisions and restrictions
contained in the Access Person Code. |
As individuals we must
know what is expected of us, take personal accountability for our actions and know how to respond if someone is acting improperly. Please
read this Access Person Code and think about how it applies to you.
If you are unsure whether
you are required to comply with the additional requirements set out in this Access Person Code, please contact your local Risk and Compliance
team.
What happens if I
do not meet the conduct standards?
Any action that falls
short of the requirements of the Access Person Code, or any of our regulators, may be dealt with under formal investigation and disciplinary
action. Depending on the nature of the breach, this may be regarded as gross misconduct and result in your dismissal. In the case of
contractors and agency workers, any inappropriate conduct may lead to the termination or suspension of services. We may also be obliged
to submit a report to our regulators and/or the authorities.
abrdn has an obligation
to report suspicious transactions to our regulators. If you participate in such an activity, this may have an impact on your regulatory
authorisation status (e.g., Approved Person status) and may be considered a reportable breach. Global regulators have recently actively
prosecuted a number of high profile market abuse and insider dealing cases. They have all made public statements of their intention to
prioritise the use of criminal and civil powers to pursue those who abuse markets.
If you become aware
of a breach of the Access Person Code and/or a regulatory breach you must report this at the earliest opportunity to your manager and/or
Risk and Compliance, or via the Speak Up helpline).
Personal Account Dealing
What is Personal Account Dealing?
Personal account dealing is the buying
or selling of securities in which an individual has, or acquires, a direct or indirect beneficial ownership. It includes dealing on behalf
of:
| ⮚ | any account on which you have
controlling authority to deal (e.g. Power of Attorney) |
| ⮚ | any other accounts that are held
by Connected Persons which includes but is not limited to any spouse, domestic partner or
civil union partner (please see Definitions section for full definition). |
What are ‘Reportable Securities’?
Reportable Securities are all types
of investment, including Initial Public Offerings and Private Placements, with some exceptions which appear to present little opportunity
for market abuse. Please refer to Definitions section for details.
What are the restrictions on my ability
to transact personal deals?
You and your Connected Persons are
prohibited from personal account dealing if:
¬ the transaction is likely to lead
to a conflict of interest with abrdn or its clients and customers
¬ you have inside information on
the security or suspect that such dealing would be market abuse
¬ the security is currently on the
‘Insider List’
¬ the transaction is prohibited
by the seven day blackout period detailed in abrdn’s PA Dealing Handbook
¬ the transaction would involve
taking a short position on a financial instrument (e.g. short selling, spread betting on financial instruments, selling uncovered options)
¬ the transaction is in a derivative
related to a financial instrument. Currency derivatives are permitted.
¬ you have not received the appropriate
authorisation/approval for the transaction.
What are your and
your Connected Persons’ obligations in relation to personal account dealing? You and your Connected Persons:
¬must not engage in excessive dealing
and are restricted to a maximum of ten personal deals in Reportable Securities per calendar month. For this restriction, Connected Person
PA Deals are viewed separately from a Supervised Person’s PA Deals.
¬must
not sell a Reportable Security within 60 days of acquiring the Reportable Security or buy a Reportable Security within 60 days of selling
the Reportable Security.
¬must gain approval for personal
account deals in ‘Reportable Securities’ including IPOs and “Limited Offerings”, via MCO, in advance of transacting
the deal, except as detailed in abrdn’s PA Dealing Handbook. PA Deals by individuals within the Investments division and
their Connected Persons require line manager approval.
¬must place your order by the end
of the business day following the approval date, within the pre-approved quantity of (amount or units), in the jurisdiction in which
the Supervised Person is dealing and record the trade on MCO, as detailed in abrdn’s PA Dealing Handbook.
¬you must report any violations
of the above requirements to Risk and Compliance.
Code of Conduct Reporting
What are my initial,
quarterly and annual reporting requirements relating to Personal Account Dealing?
As an Access Person you are subject
to initial, quarterly, and annual reporting requirements as detailed below. The requirements pertain to disclosing information regarding
transactions and holdings in Reportable Securities and Brokerage Accounts that hold Reportable Securities.
Initial Holdings1
Report
Within ten calendar days of becoming
an Access Person, you are required to complete a report in MCO that details all:
| ● | personal investments in Reportable
Securities held by you and your Connected Person. The information contained in the report
must not be older than 45 days prior to the person becoming an Access Person. |
| ● | Brokerage Accounts which you and your
Connected Persons have that either hold or has the ability to hold Reportable Securities. |
Quarterly Transaction2
Report
Within 30 days of each quarter-end,
you must complete a report in MCO which includes:
| ● | details of all transactions in Reportable
Securities carried out by you and your Connected Persons within the previous quarter |
| ● | confirmation that you have provided
trade confirms / contract notes for each transaction in a Reportable Security |
| ● | confirmation that you have reported
all Brokerage Accounts that either hold or have the ability to hold Reportable Securities
held by you and your Connected Persons. |
Annual Holdings1 Report
Within 30 days
of each year end, you must complete a report in MCO that details all:
| ● | personal investments in Reportable
Securities held by you and your Connected Person as at 31st December. |
1
Holdings Reports (both initial and annual) must contain: title and type of security, each
issuer, (as applicable) the ticker or cusip, number of shares, principal amount, the broker used for the account, and the date the report
was made.
2 Transaction Reports must
contain: title and type of security, each issuer, (as applicable) the ticker or cusip, maturity date and interest rate, number of shares,
principal amount, the broker used for the account, the nature of the transaction (i.e. purchase of sale, or any other type of acquisition
or disposition), the price of the security at which the transaction was effected, and the date the report was made.
US Political Contributions
What are my obligations
in relation to US political donations?
¬Regardless of your location, you
must comply with the US Political Contributions Policy.
¬ Financial
contributions and non-financial contributions, such as participating in any type of fundraising and / or volunteering activities associated
with a US political campaign e.g. time, venue, (together “contributions”) may raise potential conflicts of interest because
of the ability of certain office holders to direct business to abrdn.
¬ You are prohibited from making
contributions to any person running for or holding a U.S. city, county, state or other municipality related position. You are prohibited
from soliciting contributions for any person running for or holding a U.S. city, county, state or other municipality related position.
¬ You are permitted to make contributions
to persons holding or campaigning for a federal position as long as such person does not also hold a city, county or state position.
Additionally, a contribution to Federal PACs and volunteering that is not tied to financial solicitation (i.e. holding a sign for a candidate
or campaign) is permissible.
¬ You must gain pre-approval from
Compliance via MCO for any Contributions you, or your Connected Persons make to a political party or campaign within the US. You will
be asked to attest at least annually that you have disclosed all such Contributions within MCO.
¬ You are prohibited
from doing indirectly what you cannot do directly and as such cannot funnel payments through third parties, including, for example, consultants,
attorneys and/or family members as a means to circumvent this policy.
¬Please refer to the US Political
Contributions Policy in the US Registered Advisers' Compliance Manual which can be found on STAN or the Policies and Procedures
SharePoint site for full details.
Definitions
Access Person is a term defined in
US regulation, and includes:
| ● | any director, partner, or officer
of an abrdn US Registered Investment Adviser (‘Adviser’) |
| ● | any member of Staff who: |
| - | has access to non-public information
regarding any US Clients’ purchase or sale of securities, or non-public information
regarding the portfolio holdings of any Client, or |
| - | is involved in making securities recommendations
to US Clients or has access to such recommendations that are non-public, or |
| - | in connection with his or her regular
functions or duties, makes, participates in, or obtains information regarding, the purchase
or sale of Reportable Securities by a US Client, or whose functions relate to the making
of any recommendations with respect to such purchases or sales, or |
| - | obtains information concerning recommendations
made to a US Client with regard to the purchase or sale of Reportable Securities of the US
Client |
| ● | any other member of Staff who any
Adviser’s Chief Compliance Officer determines to be an Access Person. |
Connected Person means:
| ● | Any spouse, domestic partner or
civil union partner |
| ● | Any dependent member of his or
her Immediate Family living within his or her household |
| ● | Any member of his or her Immediate
Family to whose financial support he or she makes a significant contribution |
| ● | Any individual where he or she
has influence or control over the individuals’ investment decisions |
| ● | Trusts or estates over which he
or she has investment control |
| ● | Any person whose relationship with
the member of staff is such that such member of staff has a direct or indirect pecuniary
interest in the outcome of the trade, other than a fee or commission for its execution. “Pecuniary
interest” means the opportunity, directly or indirectly, to share in any profit derived
from a transaction in the Reportable Securities. |
Immediate Family Member means
spouse, children, parents and siblings (including adoptive, in-law, and step- relationships); however the definition could extend to
include other family members where there is a close relationship.
MCO means MyComplianceOffice
– Risk and Compliance record keeping system for: personal account dealing, gifts & hospitality and other Code of Conduct-related
policy administration.
Reportable Security
Examples of Reportable Securities include,
but are not limited to, the following:
| ● | Initial Placing Offers (‘IPO’) |
| ● | Exchange traded funds (‘ETF’)
(whether registered as open-end investment companies or unit investment trusts) |
| ● | Standard Life Aberdeen shares |
| ● | Non-US open-end funds (not captured
by Reportable Security exclusions shown below) |
| ● | abrdn managed / sub-advised products
as well as abrdn managed products in abrdn employee retirement savings accounts |
Examples of exclusions from the Reporting
Security definitions are:
| ● | direct obligations of the United States
national government, bankers’ acceptances, bank certificates of deposit, high quality
short-term debt instruments (maturity of less than 366 days at issuance and rated in one
of the two highest rating categories by a Nationally Recognised Statistical Rating Organisation),
including repurchase agreements, commercial paper and shares of U.S. registered money market
Funds that limit their investments to the exempt securities above. |
| ● | all U.S. registered third party open-end
investment companies (e.g., open-end Mutual Funds, but not exchange traded Funds) |
| ● | Third Party regulated collective investment
vehicles domiciled in EMEA and Asia that i) issue remediable securities, ii) calculate NAV
on a regular basis, iii) contain trading to the day on which the Fund is priced, iv) operate
a forward pricing basis and v) have no secondary market. |
Any question as to whether a particular
investment constitutes a Reportable Security must be referred to the Risk & Compliance Department.
Supervised Person is:
All abrdn employees, including temporary
employees, contractors, consultants and secondees.
Exhibit 99.2(t)(1)
THE INDIA FUND, INC.
(a Maryland corporation)
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS,
that each of the undersigned as directors of THE INDIA FUND, INC. (the “Fund”), a Maryland corporation, hereby constitutes
and appoints Katherine Corey, Megan Kennedy and Lucia Sitar each of them with power to act without the others, his or her attorney-in-fact,
with full power of substitution and resubstitution, to sign and file one or more Registration Statements on Form N-2 under the Securities
Act of 1933, as amended, and the Investment Company Act of 1940, as amended, registering securities of the Fund for issuance by the Fund
from time to time in connection with the Fund’s desire to raise additional capital, and any and all amendments thereto, and to file
the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, and
each of them shall have full power and authority to do and perform in the name and on behalf of the undersigned in any and all capacities,
all and every act and thing requisite or necessary to be done, as fully and to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof.
This instrument may be executed in one or more counterparts.
IN WITNESS WHEREOF, the undersigned has herewith
set his or her name and seal as of this 2nd day of February 2024.
/s/ Alan Goodson |
|
/s/ Jeswald W. Salacuse |
Alan Goodson, Director |
|
Jeswald W. Salacuse, Director |
|
|
|
/s/ Nisha Kumar |
|
/s/ Luis F. Rubio |
Nisha Kumar, Director |
|
Luis F. Rubio, Director |
|
|
|
/s/ Nancy Yao |
|
|
Nancy Yao, Director |
|
|
NOTICE
THE PURPOSE OF THIS POWER OF ATTORNEY IS TO GIVE
THE PERSONS YOU DESIGNATE (YOUR “AGENTS”) BROAD POWERS TO ACT ON YOUR BEHALF WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION
(THE “COMMISSION”). THESE POWERS INCLUDE, THE POWER TO SIGN ON YOUR BEHALF AND FILE THE FORM N-2 REGISTRATION STATEMENT
OF THE INDIA FUND, INC. AND ANY AMENDMENTS OR EXHIBITS THERETO, AND OTHER DOCUMENTS IN CONNECTION THEREWITH, WITH THE COMMISSION.
THE POWER OF ATTORNEY ALSO GIVES YOUR AGENT THE POWER TO DO AND PERFORM IN YOUR NAME AND ON YOUR BEHALF IN ANY AND ALL CAPACITIES,
ALL AND EVERY ACT AND THING REQUISITE OR NECESSARY TO BE DONE TO ALL INTENTS AND PURPOSES AS YOU MIGHT OR COULD DO IN PERSON THAT SUCH
AGENTS DEEM NECESSARY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU.
THIS POWER OF ATTORNEY DOES NOT IMPOSE A DUTY ON
YOUR AGENTS TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENTS MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE
WITH THIS POWER OF ATTORNEY.
YOUR AGENTS MAY EXERCISE THE POWERS GIVEN
HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIMIT THE DURATION OF THESE POWERS OR YOU REVOKE
THESE POWERS OR A COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENTS’ AUTHORITY.
YOUR AGENTS MUST KEEP YOUR FUNDS SEPARATE FROM
YOUR AGENTS’ FUNDS.
A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENTS
IF IT FINDS YOUR AGENTS ARE NOT ACTING PROPERLY.
THE POWERS AND DUTIES OF AN AGENT UNDER A POWER
OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA.C.S. CH. 56.
IF THERE IS ANYTHING ABOUT THIS FORM THAT
YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU.
I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE
AND I UNDERSTAND ITS CONTENTS.
[The remainder of this page is intentionally
left blank.]
IN WITNESS WHEREOF, the undersigned has herewith
set his or her name and seal as of this 2nd day of February 2024.
/s/ Alan Goodson |
|
/s/ Jeswald W. Salacuse |
Alan Goodson, Director |
|
Jeswald W. Salacuse, Director |
|
|
|
/s/ Nisha Kumar |
|
/s/ Luis F. Rubio |
Nisha Kumar, Director |
|
Luis F. Rubio, Director |
|
|
|
/s/ Nancy Yao |
|
|
Nancy Yao, Director |
|
|
ACKNOWLEDGMENT
We, the undersigned, Katherine Corey, Megan Kennedy
and Lucia Sitar, have read the attached power of attorney and are the persons identified as the agents for the directors of THE INDIA
FUND, INC. (the “Fund”), a Maryland corporation, and the Fund (the “Grantors”). We hereby acknowledge that,
in the absence of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. Ch. 56, when we act as agents:
We shall exercise the powers for the benefit of
the Grantors.
We shall keep the assets of the Grantors separate
from our assets.
We shall exercise reasonable caution and prudence.
We shall keep a full and accurate record of all
actions, receipts, and disbursements on behalf of the Grantors.
Date: February 2, 2024
|
/s/ Katherine Corey |
|
Katherine Corey |
|
|
|
/s/ Megan Kennedy |
|
Megan Kennedy |
|
|
|
/s/ Lucia Sitar |
|
Lucia Sitar |
THE INDIA FUND, INC.
(a Maryland corporation)
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS,
that each of the undersigned as officers of THE INDIA FUND, INC. (the “Fund”), a Maryland corporation, hereby constitutes
and appoints Katherine Corey, Megan Kennedy and Lucia Sitar each of them with power to act without the others, his or her attorney-in-fact,
with full power of substitution and resubstitution, to sign and file one or more Registration Statements on Form N-2 under the Securities
Act of 1933, as amended, and the Investment Company Act of 1940, as amended, registering securities of the Fund for issuance by the Fund
from time to time in connection with the Fund’s desire to raise additional capital, and any and all amendments thereto, and to file
the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, and
each of them shall have full power and authority to do and perform in the name and on behalf of the undersigned in any and all capacities,
all and every act and thing requisite or necessary to be done, as fully and to all intents and purposes as he or she might or could do
in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof.
This instrument may be executed in one or more counterparts.
IN WITNESS WHEREOF, the undersigned has herewith
set his or her name and seal as of this 2nd day of February 2024.
/s/ Alan Goodson |
|
/s/ Sharon Ferrari |
Alan Goodson |
|
Sharon Ferrari |
NOTICE
THE PURPOSE OF THIS POWER OF ATTORNEY IS TO GIVE
THE PERSONS YOU DESIGNATE (YOUR “AGENTS”) BROAD POWERS TO ACT ON YOUR BEHALF WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION
(THE “COMMISSION”). THESE POWERS INCLUDE, THE POWER TO SIGN ON YOUR BEHALF AND FILE THE FORM N-2 REGISTRATION STATEMENT
OF THE INDIA FUND, INC. AND ANY AMENDMENTS OR EXHIBITS THERETO, AND OTHER DOCUMENTS IN CONNECTION THEREWITH, WITH THE COMMISSION.
THE POWER OF ATTORNEY ALSO GIVES YOUR AGENT THE POWER TO DO AND PERFORM IN YOUR NAME AND ON YOUR BEHALF IN ANY AND ALL CAPACITIES,
ALL AND EVERY ACT AND THING REQUISITE OR NECESSARY TO BE DONE TO ALL INTENTS AND PURPOSES AS YOU MIGHT OR COULD DO IN PERSON THAT SUCH
AGENTS DEEM NECESSARY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU.
THIS POWER OF ATTORNEY DOES NOT IMPOSE A DUTY ON
YOUR AGENTS TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENTS MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE
WITH THIS POWER OF ATTORNEY.
YOUR AGENTS MAY EXERCISE THE POWERS GIVEN
HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIMIT THE DURATION OF THESE POWERS OR YOU REVOKE
THESE POWERS OR A COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENTS’ AUTHORITY.
YOUR AGENTS MUST KEEP YOUR FUNDS SEPARATE FROM
YOUR AGENTS’ FUNDS.
A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENTS
IF IT FINDS YOUR AGENTS ARE NOT ACTING PROPERLY.
THE POWERS AND DUTIES OF AN AGENT UNDER A POWER
OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA.C.S. CH. 56.
IF THERE IS ANYTHING ABOUT THIS FORM THAT
YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU.
I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE
AND I UNDERSTAND ITS CONTENTS.
[The remainder of this page is intentionally
left blank.]
IN WITNESS WHEREOF, the undersigned has herewith
set his or her name and seal as of this 2nd day of February 2024.
/s/ Alan Goodson |
|
/s/ Sharon Ferrari |
Alan Goodson |
|
Sharon Ferrari |
ACKNOWLEDGMENT
We, the undersigned, Alan Goodson, Megan Kennedy
and Lucia Sitar, have read the attached power of attorney and are the persons identified as the agents for the officers of THE INDIA FUND, INC.
(the “Fund”), a Maryland corporation, and the Fund (the “Grantors”). We hereby acknowledge that, in the absence
of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. Ch. 56, when we act as agents:
We shall exercise the powers for the benefit of
the Grantors.
We shall keep the assets of the Grantors separate
from our assets.
We shall exercise reasonable caution and prudence.
We shall keep a full and accurate record of all
actions, receipts, and disbursements on behalf of the Grantors.
Date: February 2, 2024 |
|
|
|
|
/s/ Katherine Corey |
|
Katherine Corey |
|
|
|
/s/ Megan Kennedy |
|
Megan Kennedy |
|
|
|
/s/ Lucia Sitar |
|
Lucia Sitar |
Exhibit 99.2(t)(2)
The information in this Prospectus Supplement is not
complete and may be changed. A Registration Statement relating to these securities has been filed with and declared effective by the Securities
and Exchange Commission. This Prospectus Supplement and the accompanying Prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject to Completion, dated February 6, 2024
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-______
FORM OF PRELIMINARY PROSPECTUS SUPPLEMENT TO BE USED IN CONNECTION
WITH OFFERINGS OF COMMON SHARES
(to Prospectus dated , 2024)
[·] Shares
The India Fund, Inc.
Common Shares
$[·] per Share
The Fund. The India Fund, Inc. (the “Fund”)
is a non-diversified closed-end management investment company.
Investment Objective. The Fund’s investment
objective is long-term capital appreciation, which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Principal Investment Strategy. The Fund invests
primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, or ADRs, convertible bonds, notes and debentures, equity interests
in trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
NYSE Listing. The Fund’s currently outstanding
Common Shares are, and the Common Shares offered by this Prospectus will be, subject to notice of issuance, listed on the New York Stock
Exchange (the “NYSE”) under the symbol “IFN.” As of ,
the last reported sale price for the Fund’s Common Shares on the NYSE was $ per
Common Share, and the net asset value of the Fund’s Common Shares was $ per Common
Share, representing a [discount/premium] to net asset value of %.
Investing in the Fund’s Common Shares
involves certain risks. See “Risks” on page [ ] of the accompanying Prospectus and “ ”
on page of this Prospectus Supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus Supplement or the
accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The underwriter is expected to deliver the Common
Shares to purchasers on or about
This Prospectus Supplement is dated
You should read this Prospectus Supplement and
the accompanying Prospectus, which contains important information about the Fund that you should know before deciding whether to invest,
and retain it for future reference. A Statement of Additional Information, dated ,
2024, containing additional information about the Fund, has been filed with the SEC and is incorporated by reference in its entirety into
the accompanying Prospectus. You may request free copies of the Statement of Additional Information, annual and semi-annual reports to
shareholders and other information about the Fund, and make shareholder inquiries, by calling Investor Relations toll-free at 1-800-522-5465
or by writing to [·] at [·], or you may obtain a copy (and other information regarding the Fund) from the SEC’s website
(www.sec.gov). Free copies of the Fund’s Prospectus, Statement of Additional Information, reports and any incorporated information
will also be available from the Fund’s website at http:/www.aberdeenifn.com.
The Fund’s Securities do not represent a
deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution and are not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
This Prospectus Supplement, the accompanying Prospectus
and the SAI contain (or will contain) or incorporate (or will incorporate) by reference “forward-looking statements.” Forward-looking
statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,”
“continue,” “plan,” “anticipate,” and similar terms with the negative of such terms. By their nature,
all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by
the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the
portfolio of securities the Fund holds, the price at which the Fund’s Securities trade in the public markets and other factors discussed
in this Prospectus Supplement, the accompanying Prospectus and the SAI, and in the Fund’s periodic filings with the SEC.
Although the Fund believes that the expectations
expressed in the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in
the Fund’s forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements,
are subject to change and are subject to inherent risks and uncertainties, such as those disclosed in “ ”
in this Prospectus Supplement and the “Risk Factors” section of this Prospectus. All forward-looking statements contained
in this Prospectus Supplement, the accompanying Prospectus or in the SAI are made as of the date of this Prospectus Supplement, the accompanying
Prospectus or SAI, as the case may be. Except for ongoing obligations under the federal securities laws, the Fund does not intend and
is not obligated, to update any forward-looking statement.
You should rely only on the information contained
or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. The Fund has not, and the underwriters have
not, authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should not assume that the information in this Prospectus Supplement and the accompanying Prospectus is accurate as of
any date other than the date of this Prospectus Supplement. The Fund’s business, financial condition and results of operations may
have changed since that date. The Fund will amend this Prospectus Supplement and the accompanying Prospectus if, during the period that
this Prospectus Supplement and the accompanying Prospectus is required to be delivered, there are any subsequent material changes.
Capitalized terms used herein that are not otherwise
defined shall have the meanings assigned to them in the accompanying Prospectus.
TABLE
OF CONTENTS
|
Page |
|
|
Prospectus Supplement |
|
Prospectus Supplement Summary |
S-1 |
Summary of Fund Expenses |
S-2 |
Capitalization |
S-3 |
Use of Proceeds |
S-3 |
Recent Developments |
S-3 |
Tax Matters |
S-3 |
Additional Information |
S-3 |
|
|
Prospectus |
|
About this Prospectus |
|
Where you can find more information |
|
Incorporation by reference |
|
Summary of Fund expenses |
|
Financial highlights |
|
The Fund |
|
Use of proceeds |
|
Description of Common Shares |
|
Investment objective and principal investment strategy |
|
Risk factors |
|
Management of the Fund |
|
Net asset value of Common Shares |
|
Distributions |
|
Tax matters |
|
Closed-end fund structure |
|
Dividend reinvestment plan |
|
Description of capital structure |
|
Plan of distribution |
|
Custodian, dividend paying agent, transfer agent and registrar |
|
Legal opinions |
|
Independent registered public accounting firm |
|
Additional information |
|
PROSPECTUS SUPPLEMENT SUMMARY |
This is only a summary of information contained elsewhere in this Prospectus Supplement and the accompanying Prospectus. This summary does not contain all of the information that you should consider before investing in the Fund’s Common Shares. You should carefully read the more detailed information contained in this Prospectus Supplement and the accompanying Prospectus and the Statement of Additional Information, dated , 2024 (the “SAI”), especially the information set forth under the headings “Investment Objective and Policies” and “Risks.” |
The Fund
|
The India Fund, Inc.(the “Fund” or “we”) is a non-diversified closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). |
Listing and Symbol |
The Fund’s currently outstanding Common Shares are, and the Common Shares offered by this Prospectus will be, subject to notice of issuance, listed on the New York Stock Exchange (the “NYSE”) under the symbol “IFN.” As of , the last reported sale price for the Fund’s Common Shares on the NYSE was $ per Common Share, and the net asset value of the Fund’s Common Shares was $ per Common Share, representing a [discount/premium] to net asset value of %. |
Distributions |
The Fund pays distributions to Common Shareholders quarterly. Payment
of future distributions is subject to approval by the Fund’s Board of Trustees, as well as meeting the covenants of any outstanding
borrowings and the asset coverage requirements of the 1940 Act.
The Fund’s next regularly scheduled distribution will be for
the quarter ending and, if approved by the Board of Trustees, is expected
to be paid to Common Shareholders on or about [Such distribution will
not be payable with respect to Common Shares that are issued pursuant to the Offer after the record date for such distribution.]
|
The Offering |
The Fund is offering Common
Shares through a group of underwriters.
Common Shares Offered by the Fund
[TO COME]
Common Shares Outstanding after the Offering
[The Fund’s Common Shares have recently traded at a premium to
net asset value (“NAV”) per share and the price of the Common Shares is expected to be above net asset value per share. Therefore,
investors in this offering are likely to experience immediate dilution of their investment. Furthermore, shares of closed-end investment
companies, such as the Fund, frequently trade at a price below their NAV. The Fund cannot predict whether its Common Shares will trade
at a premium or a discount to NAV.]
|
Risks |
See “Risks” beginning on page of the accompanying Prospectus for a discussion of factors you should consider carefully before deciding to invest in the Fund’s Common Shares. |
Use of Proceeds |
The Fund estimates the net proceeds of the offering to be approximately
$ .
The Fund intends to invest the net proceeds of the offering in accordance
with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated that the Fund will be
able to invest substantially all of the net proceeds of the offering in accordance with its investment objective and policies within [·]
months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary investments, such as
cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the Fund’s returns
during such period. The Fund may also use the proceeds for working capital purposes, including the payment of distributions, interest
and operating expenses, although the Fund currently has no intent to issue Securities primarily for these purposes. |
Summary
of Fund expenses
The purpose of the following table and the example
below is to help you understand the fees and expenses that holders of Common Shares (“Common Shareholders”) would bear directly
or indirectly. The expenses shown in the table under “Other expenses” are estimated for the current fiscal year ended [·].
The expenses shown in the table under “Total annual expenses” are estimated based on the Fund’s average net assets for
the current fiscal year ended [·] of $[·]. The table reflects the anticipated net proceeds of the Common Shares offered pursuant
to this Prospectus Supplement and the accompanying Prospectus and assuming the Fund incurs the estimated offering expenses. If the Fund
issues fewer than all of the Common Shares available for sale pursuant to the Distribution Agreement and the net proceeds to the Fund
are less, all other things being equal, the total annual expenses shown would increase.
Common Shareholder transaction expenses | |
| |
Sales load (as a percentage of offering price) | |
| ___ | %(1) |
Offering expenses (as a percentage of offering price) | |
| ___ | %(2) |
Dividend reinvestment plan fees | |
| None | (3) |
| |
Annual expenses (as a percentage of net assets attributable to | |
| |
Common Shares) | |
Advisory fee(4) | |
| [●] | % |
Other expenses | |
| [●] | % |
Total annual expenses | |
| [●] | % |
(1) Represents
the estimated commission with respect to the Common Shares being sold under this Prospectus Supplement and the accompanying Prospectus.
There is no guarantee that there will be any sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus.
Actual sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus, if any, may be less than as set forth
under “Capitalization” below. In addition, the price per Common Share of any such sale may be greater or less than the price
set forth under “Capitalization” below, depending on market price of the Common Shares at the time of any such sale.
(2) Assumes
the sale of Common Shares at a sales price per Common Share of $ ,
which represents the last reported sales price of the Common Shares on the NYSE on .
There is no guarantee that there will be any sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus.
Actual sales, if any, of the Common Shares under this Prospectus Supplement and the accompanying Prospectus may be at a price greater
or less than $ per Common Share, depending on the market price of the Common
Shares at the time of any such sale.
(3) You
will pay a brokerage commission if you direct the Plan Agent to sell your Common Shares held in a dividend reinvestment account.
(4) The
Investment Manager receives a monthly fee paid at an annual rate of i) 1.10% for the first $500 million of the Fund’s average weekly
Managed Assets; (ii) 0.90% for the next $500 million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the
next $500 million of the Fund’s average weekly Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets
in excess of $1.5 billion. Managed Assets is defined in the investment management agreement as net assets plus the amount of any borrowings
for investment purposes.
Example
An investor would directly or indirectly pay the
following expenses on a $1,000 investment in Common Shares, assuming a 5% annual return. This example assumes that (i) all dividends
and other distributions are reinvested at NAV and (ii) the percentage amounts listed under “Total annual expenses” above
remain the same in the years shown.
The example should not be considered a representation
of future expenses or rate of return and actual Fund expenses may be greater or less than those shown.
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
|
$ |
[·] |
|
$ |
[·] |
|
$ |
[·] |
|
$ |
[·] |
|
CAPITALIZATION
The following table sets forth the audited capitalization
of the Fund as of [·] and the as adjusted capitalization of the Fund assuming the issuance of [·] Common Shares offered in this
Prospectus Supplement, including estimated offering expenses of $[·] and underwriting discounts and commissions of $[·].
| |
Actual as of [●] | | |
As Adjusted as of [●] | |
Common Shareholders’ Equity: | |
| | | |
| | |
Common Shares, $0.001 par value per share; [·] shares authorized (The “Actual” and “As Adjusted” columns reflect the [·] shares outstanding as of [·].) | |
| [●] | | |
| [●] | |
Paid-in capital* | |
| [●] | | |
| [●] | |
Total distributable loss | |
| [●] | | |
| [●] | |
Net Assets | |
$ | [●] | | |
$ | [●] | |
* As adjusted paid-in surplus reflects a deduction for estimated offering
expenses of $[·] and underwriting discounts and commissions of $[·].
USE OF PROCEEDS
The Fund estimates total net proceeds of the offering
to be approximately $[·], based on the public offering price of $[·] per share and after deduction of the underwriting discounts
and commissions and estimated offering expenses payable by the Fund.
The Fund intends to invest the net proceeds of
the offering in accordance with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated
that the Fund will be able to invest substantially all of the net proceeds of the offering in accordance with its investment objective
and policies within [·] months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary
investments, such as cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the
Fund’s returns during such period. A delay in the anticipated use of proceeds could lower returns and reduce the Fund’s distribution
to Common Shareholders.
Recent
developments
[TO COME, if
any]
TAX
matters
[TO COME]
UNDERWRITERS
[TO COME]
LEGAL MATTERS
Certain legal matters in connection
with the Common Shares will be passed on for the Fund by Dechert LLP. Certain legal matters will be passed on by , , , as special counsel
to the underwriters in connection with the offering of Common Shares.
ADDITIONAL INFORMATION
This Prospectus Supplement
and the accompanying Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC under the Securities Act,
and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omits certain of the information contained in the Registration
Statement, and reference is hereby made to the Registration Statement and related exhibits for further information with respect to the
Fund and the Common Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily
complete, and, in each instance, reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise
filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC’s website (www.sec.gov).
Shares
The India Fund, Inc.
Common Shares
FORM OF
PROSPECTUS
SUPPLEMENT
Exhibit 99.2(t)(3)
The information in this Prospectus Supplement is not
complete and may be changed. A Registration Statement relating to these securities has been filed with and declared effective by the Securities
and Exchange Commission. This Prospectus Supplement and the accompanying Prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject to Completion, dated February 6, 2024
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-______
FORM OF PRELIMINARY PROSPECTUS SUPPLEMENT TO BE USED IN
CONNECTION WITH OFFERINGS OF PREFERRED SHARES
(to Prospectus
dated , 2024)
$[•]
The India Fund, Inc.
[•] Shares, [•]% Preferred
Shares
Liquidation Preference $[•] per Share
The Fund. The India Fund, Inc. (the “Fund”)
is a non-diversified closed-end management investment company.
Investment Objective. The Fund’s investment
objective is long-term capital appreciation, which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Principal Investment Strategy. The Fund invests
primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, or ADRs, convertible bonds, notes and debentures, equity interests
in trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
NYSE Listing. The Fund’s Common Shares are
listed on the New York Stock Exchange (the “NYSE”) under the symbol “IFN.” As of ,
the last reported sale price for the Fund’s Common Shares on the NYSE was $ per
Common Share, and the net asset value of the Fund’s Common Shares was $ per Common
Share, representing a [discount/premium] to net asset value of %.
[The Fund has applied to list the %
Series Preferred Shares (“Preferred Shares”) on the NYSE. If the application
is approved, the Preferred Shares are expected to commence trading on the NYSE under the symbol “[•]” within [•]
days of the date of issuance.]
Investing in the Fund’s Preferred Shares
involves certain risks. See “Risks” on page [ ] of the accompanying Prospectus and “ ”
on page of this Prospectus Supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus Supplement or the
accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The underwriter is expected to deliver the Preferred
Shares to purchasers on or about
This Prospectus Supplement is dated
You should read this Prospectus Supplement and
the accompanying Prospectus, which contains important information about the Fund that you should know before deciding whether to invest,
and retain it for future reference. A Statement of Additional Information, dated ,
2024, containing additional information about the Fund, has been filed with the SEC and is incorporated by reference in its entirety into
the accompanying Prospectus. You may request free copies of the Statement of Additional Information, annual and semi-annual reports to
shareholders and other information about the Fund, and make shareholder inquiries, by calling Investor Relations toll-free at 1-800-522-5465
or by writing to [•] at [•], or you may obtain a copy (and other information regarding the Fund) from the SEC’s website
(www.sec.gov). Free copies of the Fund’s Prospectus, Statement of Additional Information, reports and any incorporated information
will also be available from the Fund’s website at http:/www.aberdeenifn.com.
The Fund’s Securities do not represent a
deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution and are not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
This Prospectus Supplement, the accompanying Prospectus
and the SAI contain (or will contain) or incorporate (or will incorporate) by reference “forward-looking statements.” Forward-looking
statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,”
“continue,” “plan,” “anticipate,” and similar terms with the negative of such terms. By their nature,
all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by
the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the
portfolio of securities the Fund holds, the price at which the Fund’s Securities (including the Preferred Shares) trade in the public
markets and other factors discussed in this Prospectus Supplement, the accompanying Prospectus and the SAI, and in the Fund’s periodic
filings with the SEC.
Although the Fund believes that the expectations
expressed in the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in
the Fund’s forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements,
are subject to change and are subject to inherent risks and uncertainties, such as those disclosed in “ ”
in this Prospectus Supplement and the “Risk Factors” section of this Prospectus. All forward-looking statements contained
in this Prospectus Supplement, the accompanying Prospectus or in the SAI are made as of the date of this Prospectus Supplement, the accompanying
Prospectus or SAI, as the case may be. Except for ongoing obligations under the federal securities laws, the Fund does not intend and
is not obligated, to update any forward-looking statement.
You should rely only on the information contained
or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. The Fund has not, and the underwriters have
not, authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should not assume that the information in this Prospectus Supplement and the accompanying Prospectus is accurate as of
any date other than the date of this Prospectus Supplement. The Fund’s business, financial condition and results of operations may
have changed since that date. The Fund will amend this Prospectus Supplement and the accompanying Prospectus if, during the period that
this Prospectus Supplement and the accompanying Prospectus is required to be delivered, there are any subsequent material changes.
Capitalized terms used herein that are not otherwise
defined shall have the meanings assigned to them in the accompanying Prospectus.
TABLE
OF CONTENTS
|
Page |
Prospectus Supplement |
|
Prospectus Supplement Summary |
S-1 |
Capitalization |
S-2 |
Use of Proceeds |
S-2 |
Asset Coverage Ratio |
S-2 |
Special Characteristics and Risks of the Preferred Shares |
S-3 |
Recent Developments |
S-4 |
Tax Matters |
S-4 |
Additional Information |
S-4 |
|
|
Prospectus |
|
About this Prospectus |
|
Where you can find more information |
|
Incorporation by reference |
|
Summary of Fund expenses |
|
Financial highlights |
|
The Fund |
|
Use of proceeds |
|
Description of Common Shares |
|
Investment objective and principal investment strategy |
|
Risk factors |
|
Management of the Fund |
|
Net asset value of Common Shares |
|
Distributions |
|
Tax matters |
|
Closed-end fund structure |
|
Dividend reinvestment plan |
|
Description of capital structure |
|
Plan of distribution |
|
Custodian, dividend paying agent, transfer agent and registrar |
|
Legal opinions |
|
Independent registered public accounting firm |
|
Additional information |
|
PROSPECTUS SUPPLEMENT SUMMARY |
|
This is only a summary of information contained elsewhere in this Prospectus Supplement and the accompanying Prospectus. This summary does not contain all of the information that you should consider before investing in the Fund’s Series Preferred Shares. You should carefully read the more detailed information contained in this Prospectus Supplement and the accompanying Prospectus and the Statement of Additional Information, dated , 2024 (the “SAI”), especially the information set forth under the headings “Investment Objective and Policies” and “Risks.” |
|
The Fund
|
The India Fund, Inc.(the “Fund” or “we”) is a non-diversified closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). |
|
|
Listing and Symbol |
The Fund’s Common Shares are listed on the New York Stock Exchange
(the “NYSE”) under the symbol “IFN.” As of , the last reported sale price for the Fund’s Common Shares on
the NYSE was $ per Common Share, and the net asset value of the Fund’s Common Shares was $ per Common Share, representing a [discount/premium]
to net asset value of %.
[The Fund has applied to list the % Series Preferred Shares on
the NYSE. If the application is approved, the Preferred Shares are expected to commence trading on the NYSE under the symbol “[
]” within [ ] days of the date of issuance.] |
|
|
The Offering |
The Fund is offering an aggregate of shares of % Series Preferred
Shares, par value $[0.001] per share (the “Preferred Shares”).
Terms of the Preferred Shares Offered by the Fund
The Preferred Shares will have a liquidation preference of $ per share,
plus accumulated and unpaid dividends. The dividend rate [for the initial dividend period] will be %. [Dividends will be paid when, as
and if declared by the Board of Trustees, out of funds legally available therefore. Dividends and distributions on the Preferred Shares
will accumulate from the date of their original issue. The payment date for the initial dividend period will be .]
The Preferred Shares will rank senior to the Fund’s Common Shares
in priority of payment of dividends and as to the distribution of assets upon dissolution, liquidation or winding up of the Fund’s
affairs; equal in priority with all other future series of preferred shares the Fund may issue as to priority of payment of dividends
and as to distributions of assets upon dissolution, liquidation or the winding-up of the Fund’s affairs; and subordinate in right
of payment to amounts owed under the Fund’s existing credit agreement, and to the holder of any future senior Indebtedness, which
may be issued without the vote or consent of preferred shareholders.
Under the Statement of Preferences governing the Series Preferred
Shares, the Preferred Shares will be subject to mandatory redemption if the Fund fails to satisfy certain asset coverage tests, subject
to applicable cure period and other terms and conditions.
[TO COME] |
|
|
Risks |
See “Risks” beginning on page of the accompanying Prospectus for a discussion of factors you should consider carefully before deciding to invest in the Fund’s Preferred Shares. |
|
|
Use of Proceeds |
The Fund estimates the net proceeds of the offering to be approximately
$ .
The Fund intends to invest the net proceeds of the offering in accordance
with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated that the Fund will be
able to invest substantially all of the net proceeds of the offering in accordance with its investment objective and policies within [•]
months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary investments, such as
cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the Fund’s returns
during such period. The Fund may also use the proceeds for working capital purposes, including the payment of distributions, interest
and operating expenses, although the Fund currently has no intent to issue Securities primarily for these purposes. |
CAPITALIZATION
The following table sets forth the audited capitalization
of the Fund as of [•] and the as adjusted capitalization of the Fund assuming the issuance of [•] Preferred Shares offered in
this Prospectus Supplement, including estimated offering expenses of $[•] and underwriting discounts and commissions of $[•].
| |
Actual as of [•] | | |
As Adjusted as of [•] | |
Preferred Shares: | |
| | | |
| | |
Series Preferred shares, [$0.001] par value per share, [•] shares
authorized (The “Actual” column reflects the Fund’s outstanding capitalization as of [•], 2021. The “As
Adjusted” column assumes the issuance of [•] Preferred Shares and the Common Shares outstanding at [•].) | |
| [•] | | |
| [•] | |
Common Shareholders’ Equity: | |
| | | |
| | |
Common Shares, $0.001 par value per share; [•] shares authorized (The “Actual” and “As Adjusted” columns reflect the [•] shares outstanding as of [•].) | |
| [•] | | |
| [•] | |
Paid-in capital* | |
| [•] | | |
| [•] | |
Total distributable loss | |
| [•] | | |
| [•] | |
Net Assets | |
$ | [•] | | |
$ | [•] | |
* As adjusted paid-in surplus reflects a deduction for estimated offering
expenses of $[•] and underwriting discounts and commissions of $[•].
USE OF PROCEEDS
The Fund estimates total net proceeds of the offering
to be approximately $[•], based on the public offering price of $[•] per share and after deduction of the underwriting discounts
and commissions and estimated offering expenses payable by the Fund.
The Fund intends to invest the net proceeds of
the offering in accordance with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated
that the Fund will be able to invest substantially all of the net proceeds of the offering in accordance with its investment objective
and policies within [•] months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary
investments, such as cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the
Fund’s returns during such period.
ASSET COVERAGE RATIO
Under the 1940 Act, the Fund
is not permitted to issue preferred shares unless immediately after such issuance the value of the Fund’s total assets less all
liabilities and indebtedness not represented by senior securities is at least 200% of the liquidation value of the outstanding preferred
shares plus the aggregate amount of any senior securities of the Fund representing indebtedness. In addition, the Fund is not permitted
to declare any cash dividend or other distribution on its Common Shares unless, at the time of such declaration, the outstanding preferred
shares of the Fund has an asset coverage of at least 200% (determined after deducting the amount of such dividend or other distribution).
In addition, under the 1940 Act, the Fund may not
(i) declare any dividend with respect to any preferred shares if, at the time of such declaration (and after giving effect thereto),
the Fund’s asset coverage with respect to any of its borrowings that are senior securities representing indebtedness (as determined
in accordance with Section 18(h) under the 1940 Act), would be less than 200% (or such other percentage as may in the future
be specified in or under the 1940 Act as the minimum asset coverage for senior securities representing indebtedness of a closed-end investment
company as a condition of declaring dividends on its preferred shares) or (ii) declare any other distribution on the preferred shares
or purchase or redeem preferred shares if at the time of the declaration or redemption (and after giving effect thereto), asset coverage
with respect to such borrowings that are senior securities representing indebtedness would be less than 300% (or such other percentage
as may in the future be specified in or under the 1940 Act as a minimum asset coverage for senior securities representing indebtedness
of a closed-end investment company as a condition of declaring distributions, purchases or redemptions of its shares). “Senior securities
representing indebtedness” generally means any bond, debenture, note or similar obligation or instrument constituting a security
(other than shares of capital stock) and evidencing indebtedness and could include the Fund’s obligations under any borrowings.
For purposes of determining the Fund’s asset coverage for senior securities representing indebtedness in connection with the payment
of dividends or other distributions on or purchases or redemptions of stock, the term “senior security” does not include any
promissory note or other evidence of indebtedness issued in consideration of any loan, extension or renewal thereof, made by a bank or
other person and privately arranged, and not intended to be publicly distributed. The term “senior security” also does not
include any such promissory note or other evidence of indebtedness in any case where such a loan is for temporary purposes only and in
an amount not exceeding 5% of the value of the total assets of the Fund at the time when the loan is made; a loan is presumed under the
1940 Act to be for temporary purposes if it is repaid within 60 calendar days and is not extended or renewed; otherwise such loan is presumed
not to be for temporary purposes.
The Preferred Shares and any other forms of senior
securities issued by the Fund, in aggregate, are expected to have an initial asset coverage following the date of issuance of such Preferred
Shares of approximately %.
SPECIAL CHARACTERISTICS AND RISKS OF THE SERIES
PREFERRED SHARES
Dividends
[TO COME]
Redemption
[TO COME]
Voting Rights
[TO COME]
Liquidation
In the event of any liquidation, dissolution or
winding up of the Fund’s affairs, whether voluntary or involuntary, the holders of Preferred Shares will be entitled to receive
out of the assets of the Fund available for distribution to stockholders, after satisfying claims of creditors but before any distribution
or payment will be made in respect of the Common Shares, a liquidation distribution equal to the $[•] per share liquidation preference
plus an amount equal to all unpaid dividends and distributions accumulated through the date fixed for such distribution or payment (whether
or not earned or declared by the Fund, but excluding interest thereon), and such holders will be entitled to no further participation
in any distribution or payment in connection with any such liquidation, dissolution or winding up.
If, upon any liquidation, dissolution or winding
up of the Fund’s affairs, whether voluntary or involuntary, the assets of the Fund available for distribution among the holders
of all Preferred Shares and any other outstanding shares of preferred shares will be insufficient to permit the payment in full to such
holders of Preferred Shares of the $[•] per share liquidation preference plus accumulated and unpaid dividends and distributions
and the amounts due upon liquidation with respect to such other shares of preferred shares, then the available assets shall be distributed
among the holders of such Preferred Shares and such other series of preferred shares ratably in proportion to the respective preferential
liquidation amounts to which they are entitled. In connection with any liquidation, dissolution or winding up of the Fund’s affairs
whether voluntary or involuntary, unless and until the $[•] per share liquidation preference on each outstanding Preferred Share
plus accumulated and unpaid dividends and distributions has been paid in full to the holders of Preferred Shares, no dividends, distributions
or other payments will be made on, and no redemption, repurchase or other acquisition by the Fund will be made by the Fund in respect
of, the Common Shares.
Stock Exchange Listing
Application has been made to list the %
Series Preferred Shares on the NYSE. If the application is approved, the Preferred Shares are expected to commence trading on the
NYSE within thirty days of the date of issuance under the symbol “[•]”
Risks
Risk is inherent in all investing. Therefore, before
investing in the Preferred Shares you should consider the risks carefully. See “Risks” in the accompanying Prospectus as well
as the risks below.
Market Price Risk. The market price for
the Preferred Shares will be influenced by changes in interest rates, the perceived credit quality of the Preferred Shares and other factors,
and may be higher or lower than the liquidation preference of the Preferred Shares. There is currently no market for the Preferred Shares
of the Fund.
Liquidity Risk. Currently, there is no public
market for the Preferred Shares. As noted above, an application has been made to list the Preferred Shares on the NYSE. However, during
an initial period which is not expected to exceed thirty days after the date of its issuance, the Preferred Shares will not be listed
on any securities exchange. Before the Preferred Shares are listed on the NYSE, the underwriter may, but is not obligated to, make a market
in the Preferred Shares. No assurances can be provided that listing on any securities exchange or market making by the underwriter will
occur or will result in the market for Preferred Shares being liquid at any time.
Redemption Risk. The Fund may be required
to redeem Preferred Shares in order to meet regulatory asset coverage requirements or requirements imposed by credit rating agencies.
For example, if the value of the Fund’s investment portfolio declines, thereby reducing the asset coverage for the Preferred Shares,
the Fund may be obligated under the terms of the Preferred Shares to redeem some or all of the Preferred Shares.
Subordination Risk. The Preferred Shares
are not a debt obligation of the Fund. The Preferred Shares are junior in respect of distributions and liquidation preference to the current
and future indebtedness incurred by the Fund, and will have the same priority with respect to payment of dividends and distributions and
liquidation preference as any other shares of preferred shares that the Fund may issue. The Preferred Shares are subject to greater credit
risk than any of the Fund’s debt instruments, which would be of higher priority in the Fund’s capital structure.
Distribution Risk. The Fund may not earn
sufficient income from its investments to make distributions on the Preferred Shares, in which case the distributions on the Preferred
Shares would be considered a return of capital. Additionally, the Fund’s failure to meet certain regulatory and other requirements,
including asset coverage requirements and the restrictions imposed under the terms of any senior indebtedness as well as those imposed
by applicable credit rating agencies, could prohibit or limit the Fund from making distributions on the Preferred Shares.
Recent
developments
[TO COME, if
any]
TAX
matters
[TO COME]
UNDERWRITERS
[TO COME]
LEGAL MATTERS
Certain legal matters in connection
with the Preferred Shares will be passed on for the Fund by Dechert LLP. Certain legal matters will be passed on by , , , as special counsel
to the underwriters in connection with the offering of Preferred Shares.
ADDITIONAL INFORMATION
This Prospectus Supplement
and the accompanying Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC under the Securities Act,
and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omits certain of the information contained in the Registration
Statement, and reference is hereby made to the Registration Statement and related exhibits for further information with respect to the
Fund and the Preferred Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily
complete, and, in each instance, reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise
filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC’s website (www.sec.gov).
Shares
The India Fund, Inc.
%
Series Preferred Shares
FORM OF
PROSPECTUS
SUPPLEMENT
Exhibit 99.2(t)(4)
The information in this Prospectus Supplement is not
complete and may be changed. A Registration Statement relating to these securities has been filed with and declared effective by the Securities
and Exchange Commission. This Prospectus Supplement and the accompanying Prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject to Completion, dated February 6, 2024
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-______
FORM OF PRELIMINARY PROSPECTUS SUPPLEMENT TO BE USED IN
CONNECTION WITH OFFERINGS OF NOTES
(to Prospectus
dated , 2024)
The India Fund, Inc.
Notes
The Fund. The India Fund, Inc. (the “Fund”)
is a non-diversified closed-end management investment company.
Investment Objective. The Fund’s investment
objective is long-term capital appreciation, which it seeks to achieve by investing primarily in the equity securities of Indian companies.
Principal Investment Strategy. The Fund invests
primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, or ADRs, convertible bonds, notes and debentures, equity interests
in trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy to invest, under
normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies of the Fund
that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
NYSE Listing. The Fund’s Common Shares are
listed on the New York Stock Exchange (the “NYSE”) under the symbol “IFN.” As of ,
the last reported sale price for the Fund’s Common Shares on the NYSE was $ per
Common Share, and the net asset value of the Fund’s Common Shares was $ per Common
Share, representing a [discount/premium] to net asset value of %.
Investing in the Fund’s Notes involves
certain risks. See “Risks” on page [ ] of the accompanying Prospectus and “ ”
on page of this Prospectus Supplement.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus Supplement or the
accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The Notes will be ready for delivery on or about
This Prospectus Supplement is dated
You should read this Prospectus Supplement and
the accompanying Prospectus, which contains important information about the Fund that you should know before deciding whether to invest,
and retain it for future reference. A Statement of Additional Information, dated ,
2024, containing additional information about the Fund, has been filed with the SEC and is incorporated by reference in its entirety into
the accompanying Prospectus. You may request free copies of the Statement of Additional Information, annual and semi-annual reports to
shareholders and other information about the Fund, and make shareholder inquiries, by calling Investor Relations toll-free at 1-800-522-5465
or by writing to [·] at [·], or you may obtain a copy (and other information regarding the Fund) from the SEC’s website
(www.sec.gov). Free copies of the Fund’s Prospectus, Statement of Additional Information, reports and any incorporated information
will also be available from the Fund’s website at http:/www.aberdeenifn.com.
The Fund’s Securities do not represent a
deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution and are not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
This Prospectus Supplement, the accompanying Prospectus
and the SAI contain (or will contain) or incorporate (or will incorporate) by reference “forward-looking statements.” Forward-looking
statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,”
“continue,” “plan,” “anticipate,” and similar terms with the negative of such terms. By their nature,
all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by
the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the
portfolio of securities the Fund holds, the price at which the Fund’s Securities trade in the public markets and other factors discussed
in this Prospectus Supplement, the accompanying Prospectus and the SAI, and in the Fund’s periodic filings with the SEC.
Although the Fund believes that the expectations
expressed in the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in
the Fund’s forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements,
are subject to change and are subject to inherent risks and uncertainties, such as those disclosed in “ ”
in this Prospectus Supplement and the “Risk Factors” section of this Prospectus. All forward-looking statements contained
in this Prospectus Supplement, the accompanying Prospectus or in the SAI are made as of the date of this Prospectus Supplement, the accompanying
Prospectus or SAI, as the case may be. Except for ongoing obligations under the federal securities laws, the Fund does not intend and
is not obligated, to update any forward-looking statement.
You should rely only on the information contained
or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. The Fund has not, and the underwriters have
not, authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should not assume that the information in this Prospectus Supplement and the accompanying Prospectus is accurate as of
any date other than the date of this Prospectus Supplement. The Fund’s business, financial condition and results of operations may
have changed since that date. The Fund will amend this Prospectus Supplement and the accompanying Prospectus if, during the period that
this Prospectus Supplement and the accompanying Prospectus is required to be delivered, there are any subsequent material changes.
Capitalized terms used herein that are not otherwise
defined shall have the meanings assigned to them in the accompanying Prospectus.
TABLE
OF CONTENTS
|
Page |
Prospectus Supplement |
|
Prospectus Supplement Summary |
S-1 |
Capitalization |
S-6 |
Use of Proceeds |
S-6 |
Asset Coverage Ratio |
S-6 |
Special Characteristics and Risks of the Notes |
S-6 |
Recent Developments |
S-6 |
Tax Matters |
S-6 |
Additional Information |
S-7 |
|
|
Prospectus |
|
About this Prospectus |
|
Where you can find more information |
|
Incorporation by reference |
|
Summary of Fund expenses |
|
Financial highlights |
|
The Fund |
|
Use of proceeds |
|
Description of Common Shares |
|
Investment objective and principal investment strategy |
|
Risk factors |
|
Management of the Fund |
|
Net asset value of Common Shares |
|
Distributions |
|
Tax matters |
|
Closed-end fund structure |
|
Dividend reinvestment plan |
|
Description of capital structure |
|
Plan of distribution |
|
Custodian, dividend paying agent, transfer agent and registrar |
|
Legal opinions |
|
Independent registered public accounting firm |
|
Additional information |
|
PROSPECTUS SUPPLEMENT SUMMARY |
|
This is only a summary of information contained elsewhere in this Prospectus Supplement and the accompanying Prospectus. This summary does not contain all of the information that you should consider before investing in the Fund’s Series Notes. You should carefully read the more detailed information contained in this Prospectus Supplement and the accompanying Prospectus and the Statement of Additional Information, dated , 2024 (the “SAI”), especially the information set forth under the headings “Investment Objective and Policies” and “Risks.” |
|
The Fund
|
The India Fund, Inc.(the “Fund” or “we”) is a non-diversified closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). |
|
|
Listing and Symbol |
The Fund’s Common Shares are listed on the New York Stock Exchange (the “NYSE”) under the symbol “IFN.” As of , the last reported sale price for the Fund’s Common Shares on the NYSE was $ per Common Share, and the net asset value of the Fund’s Common Shares was $ per Common Share, representing a [discount/premium] to net asset value of %. |
|
|
The Offering |
Terms
of the Notes Offered by the Fund
Principal Amount The principal amount of the notes is $ in the aggregate.
Maturity The principal amount of the notes will become due and payable on , .
Interest Rate The interest rate will be %.
Frequency of payment Interest will be paid commencing .
Prepayment Protections
[Stock Exchange Listing]
Rating It is a condition of issuance that the notes be rated by . |
|
|
|
[TO COME] |
|
|
Risks |
See “Risks” beginning on page of the accompanying Prospectus for a discussion of factors you should consider carefully before deciding to invest in the Fund’s Notes. |
|
|
Use of Proceeds |
The Fund estimates the net proceeds of the offering to be approximately
$ .
The Fund intends to invest the net proceeds of the offering in accordance
with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated that the Fund will be
able to invest substantially all of the net proceeds of the offering in accordance with its investment objective and policies within [·]
months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary investments, such as
cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the Fund’s returns
during such period. The Fund may also use the proceeds for working capital purposes, including the payment of distributions, interest
and operating expenses, although the Fund currently has no intent to issue Securities primarily for these purposes. |
CAPITALIZATION
[TO COME]
USE OF PROCEEDS
The Fund estimates total net proceeds of the offering
to be approximately $[·], based on the public offering price of $[·] per note and after deduction of the underwriting discounts
and commissions and estimated offering expenses payable by the Fund.
The Fund intends to invest the net proceeds of
the offering in accordance with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated
that the Fund will be able to invest substantially all of the net proceeds of the offering in accordance with its investment objective
and policies within [·] months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary
investments, such as cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the
Fund’s returns during such period.
ASSET COVERAGE RATIO
Under the 1940 Act, the Fund
is not permitted to issue debt and/or preferred shares unless immediately after such issuance the value of the Fund’s total assets
less all liabilities and indebtedness not represented by senior securities is at least 200% of the liquidation value of the outstanding
debt and preferred shares plus the aggregate amount of any senior securities of the Fund representing indebtedness. In addition, the Fund
is not permitted to declare any cash dividend or other distribution on its Common Shares unless, at the time of such declaration, the
outstanding debt and preferred shares of the Fund has an asset coverage of at least 200% (determined after deducting the amount of such
dividend or other distribution).
In addition, under the 1940 Act, the Fund may not
(i) declare any dividend with respect to any debt or preferred shares if, at the time of such declaration (and after giving effect
thereto), the Fund’s asset coverage with respect to any of its borrowings that are senior securities representing indebtedness (as
determined in accordance with Section 18(h) under the 1940 Act), would be less than 200% (or such other percentage as may in
the future be specified in or under the 1940 Act as the minimum asset coverage for senior securities representing indebtedness of a closed-end
investment company as a condition of declaring dividends on its debt and/or preferred shares) or (ii) declare any other distribution
on the debt and/or preferred shares or purchase or redeem debt and/or preferred shares if at the time of the declaration or redemption
(and after giving effect thereto), asset coverage with respect to such borrowings that are senior securities representing indebtedness
would be less than 300% (or such other percentage as may in the future be specified in or under the 1940 Act as a minimum asset coverage
for senior securities representing indebtedness of a closed-end investment company as a condition of declaring distributions, purchases
or redemptions of its shares). “Senior securities representing indebtedness” generally means any bond, debenture, note or
similar obligation or instrument constituting a security (other than shares of capital stock) and evidencing indebtedness and could include
the Fund’s obligations under any borrowings. For purposes of determining the Fund’s asset coverage for senior securities representing
indebtedness in connection with the payment of dividends or other distributions on or purchases or redemptions of stock, the term “senior
security” does not include any promissory note or other evidence of indebtedness issued in consideration of any loan, extension
or renewal thereof, made by a bank or other person and privately arranged, and not intended to be publicly distributed. The term “senior
security” also does not include any such promissory note or other evidence of indebtedness in any case where such a loan is for
temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the Fund at the time when the loan is made;
a loan is presumed under the 1940 Act to be for temporary purposes if it is repaid within 60 calendar days and is not extended or renewed;
otherwise such loan is presumed not to be for temporary purposes.
The Notes and any other forms of senior securities
issued by the Fund, in aggregate, are expected to have an initial asset coverage following the date of issuance of such Notes of approximately %.
SPECIAL CHARACTERISTICS AND RISKS OF THE NOTES
[TO COME]
Recent
developments
[TO COME, if
any]
TAX
matters
[TO COME]
UNDERWRITERS
[TO COME]
LEGAL MATTERS
Certain legal matters in connection
with the Notes will be passed on for the Fund by Dechert LLP. Certain legal matters will be passed on by , , , as special counsel to the
underwriters in connection with the offering of Notes.
ADDITIONAL INFORMATION
This Prospectus Supplement
and the accompanying Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC under the Securities Act,
and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omits certain of the information contained in the Registration
Statement, and reference is hereby made to the Registration Statement and related exhibits for further information with respect to the
Fund and the Preferred Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily
complete, and, in each instance, reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise
filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC’s website (www.sec.gov).
Shares
The India Fund, Inc.
Notes
FORM OF
PROSPECTUS
SUPPLEMENT
Exhibit 99.2(t)(5)
The information in this Prospectus Supplement is not
complete and may be changed. A Registration Statement relating to these securities has been filed with and declared effective by the Securities
and Exchange Commission. This Prospectus Supplement and the accompanying Prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject to Completion, dated February 6, 2024
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-______
FORM OF PRELIMINARY PROSPECTUS SUPPLEMENT TO BE USED IN CONNECTION
WITH OFFERINGS OF Rights to Purchase COMMON SHARES
(to Prospectus dated , 2024)
[·] Shares
The India Fund, Inc.
Issuable Upon the Exercise of
Subscription Rights to Acquire Common Shares
The India Fund, Inc. (the “Fund”)
is a non-diversified closed-end management investment company.
The Fund is issuing [transferable/non-transferable]
rights (“Rights”) to its shareholders of record as of the close of business on (the “Record
Date”) entitling the holders of these Rights to subscribe (the “Offer”) for an aggregate of common
shares of beneficial interest, par value [$0.001] per common share (the “Common Shares”). The holders of Common Shares (the
“Common Shareholders”) of record on the Record Date (“Record Date Shareholders”) will receive one Right for each
outstanding Common Share owned on the Record Date. The Rights entitle the holders to purchase one new Common Share for every Rights
held (1 for ), and Common Shareholders of record who fully exercise their Rights will be entitled to
subscribe, subject to certain limitations and subject to allotment, for additional Common Shares covered by any unexercised Rights. Any
Record Date Shareholder that owns fewer than Common Shares as of the close of business on the Record
Date is entitled to subscribe for one full Common Share in the Offer.
The Fund’s outstanding Common Shares are,
and the Common Shares issued pursuant to the exercise of the Rights will be, listed on the New York Stock Exchange (“NYSE”).
The Fund’s Common Shares trade under the symbol “IFN.” [The Rights are transferable and will be admitted for trading
on the NYSE under the symbol during the course of the Offer.] See “The Offer” for a complete
discussion of the terms of the Offer.
The Offer will expire at ,
New York City time, on , unless extended as described in this Prospectus Supplement (the “Expiration
Date”). The subscription price per Common Share (the “Subscription Price”) will be determined based upon [ ].
Rights holders will not know the Subscription Price
at the time of exercise and will be required initially to pay for both the Common Shares subscribed for pursuant to the primary subscription
and, if eligible, any additional Common Shares subscribed for pursuant to the over-subscription privilege at the estimated Subscription
Price of $ per Common Share and, except in limited circumstances, will
not be able to rescind their subscription.
The NAV of the Fund’s Common Shares at the
close of business on was $ and the last reported sale price of a Common
Share on the NYSE on that date was $ , representing a discount to NAV of %.
Investing in the Fund’s Common Shares
involves certain risks. See “Risks” on page [ ] of the accompanying Prospectus and “ ”
on page of this Prospectus Supplement.
In addition, you should consider the following:
| · | Upon completion of the Offer, Common Shareholders who do not fully exercise their Rights will own a smaller proportional interest
in the Fund than if they exercised their Rights, which will proportionately decrease the relative voting power of those Common Shareholders. |
| · | In addition, if the Subscription Price is less than the NAV as of the Expiration Date, the completion of the Offer will result in
an immediate dilution of NAV for all Common Shareholders (i.e., will cause the NAV of the Fund to decrease) and may have the effect of
reducing the market price of the Fund’s Common Shares. It is anticipated that the existing Common Shareholders will experience immediate
dilution even if they fully exercise their Rights. Such dilution is not currently determinable because it is not known how many Common
Shares will be subscribed for, what the NAV or market price of the Fund’s Common Shares will be on the Expiration Date or what the
Subscription Price per Common Share will be. However, assuming full exercise of the Rights being offered at the Subscription Price and
assuming that the NAV per Common Share on the Expiration Date was $ (the NAV per Common Share as of ), it is estimated that the per share
dilution resulting from the Offer would be $ , or %. Any such dilution will disproportionately affect non-exercising Common Shareholders.
If the Subscription Price is substantially less than the current NAV, this dilution could be substantial. The distribution to Common Shareholders
of transferable Rights, which themselves have intrinsic value, will afford non-participating Common Shareholders of record on the Record
Date the potential of receiving cash payment upon the sale of the Rights, receipt of which may be viewed as partial compensation for any
dilution of their interests that may occur as a result of the Offer. |
| · | There can be no assurance that a market for the Rights will develop or, if such a market develops, what the price of the Rights will
be. See “The Offer — Dilution and Effect of Non-Participation in the Offer” beginning on page [ ] of this Prospectus
Supplement. |
| · | All costs of the Offer will be borne by the Fund, and indirectly by current Common Shareholders whether they exercise their Rights
or not. |
| · | Except as described herein, Rights holders will have no right to rescind their subscriptions after receipt of their payment for Common
Shares by the subscription agent for the Offer. |
| · | The Fund has declared a monthly distribution payable on with a record date of , which will not be payable with respect to Common Shares
issued pursuant to the Offer. The Fund also expects to declare a monthly distribution to Common Shareholders payable on or about with
a record date on or about , which will not be payable with respect to Common Shares that are issued pursuant to the Offer after such
record date. |
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus Supplement or the
accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
This Prospectus Supplement is dated
Investment Objective. The
Fund’s investment objective is long-term capital appreciation, which it seeks to achieve by investing primarily in the equity securities
of Indian companies.
Principal Investment Strategy. The
Fund invests primarily in the equity securities of Indian companies.
Equity securities include common and preferred stock (including convertible
preferred stock), American, global or other types of depositary receipts, or ADRs, convertible bonds, notes and debentures, equity interests
in trusts, partnerships, joint ventures or similar enterprises and common stock purchase warrants and rights. Most of the equity securities
purchased by the Fund are expected to be traded on an Indian stock exchange or in an Indian over-the-counter market.
The Fund’s investment objective and its policy
to invest, under normal market conditions, at least 80% of its total assets in equity securities of Indian companies are fundamental policies
of the Fund that may not be changed without the approval of a majority of the Fund’s outstanding voting securities.
NYSE Listing. The Fund’s
currently outstanding Common Shares are, and the Common Shares offered by this Prospectus will be, subject to notice of issuance, listed
on the New York Stock Exchange (the “NYSE”) under the symbol “IFN.” As of ,
the last reported sale price for the Fund’s Common Shares on the NYSE was $ per
Common Share, and the net asset value of the Fund’s Common Shares was $ per Common
Share, representing a [discount/premium] to net asset value of %.
You should read this Prospectus Supplement and
the accompanying Prospectus, which contains important information about the Fund that you should know before deciding whether to invest,
and retain it for future reference. A Statement of Additional Information, dated ,
2024, containing additional information about the Fund, has been filed with the SEC and is incorporated by reference in its entirety into
the accompanying Prospectus. You may request free copies of the Statement of Additional Information, annual and semi-annual reports to
shareholders and other information about the Fund, and make shareholder inquiries, by calling Investor Relations toll-free at 1-800-522-5465
or by writing to [·] at [·], or you may obtain a copy (and other information regarding the Fund) from the SEC’s website
(www.sec.gov). Free copies of the Fund’s Prospectus, Statement of Additional Information, reports and any incorporated information
will also be available from the Fund’s website at http:/www.aberdeenifn.com.
The Fund’s Securities do not represent a
deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution and are not federally
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
This Prospectus Supplement, the accompanying Prospectus
and the SAI contain (or will contain) or incorporate (or will incorporate) by reference “forward-looking statements.” Forward-looking
statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,”
“continue,” “plan,” “anticipate,” and similar terms with the negative of such terms. By their nature,
all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by
the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the
portfolio of securities the Fund holds, the price at which the Fund’s Securities (including the Rights) trade in the public markets
and other factors discussed in this Prospectus Supplement, the accompanying Prospectus and the SAI, and in the Fund’s periodic filings
with the SEC.
Although the Fund believes that the expectations
expressed in the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in
the Fund’s forward-looking statements. Future financial condition and results of operations, as well as any forward-looking statements,
are subject to change and are subject to inherent risks and uncertainties, such as those disclosed in “ “
in this Prospectus Supplement and the “Risk Factors” section of this Prospectus. All forward-looking statements contained
in this Prospectus Supplement, the accompanying Prospectus or in the SAI are made as of the date of this Prospectus Supplement, the accompanying
Prospectus or SAI, as the case may be. Except for ongoing obligations under the federal securities laws, the Fund does not intend and
is not obligated, to update any forward-looking statement.
You should rely only on the information contained
or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. The Fund has not, and the underwriters have
not, authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. The Fund is not making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should not assume that the information in this Prospectus Supplement and the accompanying Prospectus is accurate as of
any date other than the date of this Prospectus Supplement. The Fund’s business, financial condition and results of operations may
have changed since that date. The Fund will amend this Prospectus Supplement and the accompanying Prospectus if, during the period that
this Prospectus Supplement and the accompanying Prospectus is required to be delivered, there are any subsequent material changes.
Capitalized terms used herein that are not otherwise
defined shall have the meanings assigned to them in the accompanying Prospectus.
TABLE
OF CONTENTS
Page
Prospectus Supplement |
|
Prospectus Supplement Summary |
S-1 |
Capitalization |
S-6 |
The Offer |
S-6 |
Distribution Arrangements |
S-14 |
Use of Proceeds |
S-15 |
Recent Developments |
S-16 |
Tax Matters |
S-16 |
Additional Information |
S-16 |
|
|
Prospectus |
|
About this Prospectus |
|
Where you can find more information |
|
Incorporation by reference |
|
Summary of Fund expenses |
|
Financial highlights |
|
The Fund |
|
Use of proceeds |
|
Description of Common Shares |
|
Investment objective and principal investment strategy |
|
Risk factors |
|
Management of the Fund |
|
Net asset value of Common Shares |
|
Distributions |
|
Tax matters |
|
Closed-end fund structure |
|
Dividend reinvestment plan |
|
Description of capital structure |
|
Plan of distribution |
|
Custodian, dividend paying agent, transfer agent and registrar |
|
Legal opinions |
|
Independent registered public accounting firm |
|
Additional information |
|
PROSPECTUS
SUPPLEMENT SUMMARY |
|
This
is only a summary of information contained elsewhere in this Prospectus Supplement and the accompanying Prospectus. This summary
does not contain all of the information that you should consider before investing in the Fund’s Common Shares. You should carefully
read the more detailed information contained in this Prospectus Supplement and the accompanying Prospectus and the Statement of Additional
Information, dated , 2024 (the “SAI”),
especially the information set forth under the headings “Investment Objective and Policies” and “Risks.” |
|
|
The
Fund
|
The India Fund, Inc.(the “Fund”
or “we”) is a non-diversified closed-end management investment company registered under the Investment Company Act of
1940, as amended (the “1940 Act”). |
|
|
Important Terms of the Offer |
The
Fund is issuing to Common Shareholders of record at the close of business on , the Record
Date, one [transferable/non-transferable] Right for each whole Common Share held. Each Common
Shareholder on the Record Date that continues to hold Rights and each other holder of the
Rights is entitled to subscribe for one Common Share for every Rights held (1 for ). The
Fund will not issue fractional Common Shares upon the exercise of Rights; accordingly, Rights
may be exercised only in multiples of , except that any Record Date Shareholder that owns
fewer than Common Shares as of the close of business on the Record Date is entitled to subscribe
for one full Common Share in the Offer. Record Date Shareholders who hold two or more accounts
may not combine their fractional interests across accounts. Rights are evidenced by subscription
certificates that will be mailed to Record Date Shareholders, except as described under “The
Offer—Foreign Common Shareholders.” We refer to a Rights holder’s right
to acquire during the subscription period at the Subscription Price one additional Common
Share for every Rights held (or in the case of any Record Date Shareholder who owns fewer
than Common Shares as of the close of business on the Record Date, the right to acquire one
Common Share), as the “Primary Subscription.”
Rights holders may exercise Rights at
any time after issuance on [ ] and prior to 5:00 p.m., New York City time, on [ ], the Expiration Date, unless otherwise extended
by the Fund (the “Subscription Period”). See “The Offer—Expiration of the Offer.” The Rights are transferable
and will be admitted for trading on the NYSE under the symbol “[ ]” during the course of the Offer. See “The Offer—Transferability
and Sale of Rights.”
Common Shares of the Fund, as a closed-end
fund, can trade at a discount to NAV. Upon exercise of Rights, Common Shares are expected to be issued at a price below NAV per Common
Share.
An investor who acquires Common Shares
in the Offer issued after the record date for a quarterly dividend (if any) to be paid by the Fund will not receive such dividend.
Therefore, an investor who acquires Common Shares in the Offer will not receive the Fund’s dividend payable on [ ] to Common
Shareholders of record at the close of business on [ ] and an investor who acquires Common Shares in the Offer issued after the record
date for the Fund’s [ ] dividend (which is expected to be [ ]), if declared by the Board, will not receive such dividend.
Record Date Shareholders who fully exercise
the Rights issued to them pursuant to the Offer (other than those Rights that cannot be exercised because they represent the right
to acquire less than one Common Share) will be entitled to an over-subscription privilege under which they may subscribe for additional
Common Shares at the Subscription Price. Any Common Shares made available pursuant to the over-subscription privilege are subject
to allotment. See “The Offer—Over-Subscription Privilege.”
In this Prospectus, we use the terms
“Common Shareholders” to refer to any person that holds Common Shares, “Record Date Shareholders” to refer
to those Common Shareholders that held their Common Shares on the Record Date and “Existing Rights Holders” to refer
to those persons (i) that are Record Date Shareholders to whom the Rights were issued initially to the extent that a Record
Date Shareholder continues to hold Rights and (ii) any subsequent transferees of the Rights that continue to hold the Rights. |
|
|
Important Dates to Remember |
Record
Date
Subscription Period* through
Final Date Rights Will Trade
Expiration Date* |
|
Deadline for Subscription Certificates and Payment for Common Shares*†
Deadline for Notice of Guaranteed Delivery*†
Deadline for Payment Pursuant to Notice of Guaranteed Delivery*
Confirmation Mailed to Exercising Rights Holders
Final Payment for Common Shares Due**
* Unless the Offer is extended.
** Additional amount due (in the event the Subscription Price exceeds
the estimated Subscription Price).
|
Subscription Price |
[TO COME] |
|
|
[Oversubscription Privilege |
Record Date Shareholders who fully exercise
all Rights initially issued to them (other than those Rights to acquire less than one Common Share, which cannot be exercised) are entitled
to subscribe for additional Common Shares which were not subscribed for by other Record Date Shareholders at the same Subscription Price,
subject to certain limitations and subject to allotment. This is known as the “over-subscription privilege” (the “Over-Subscription
Privilege”). Investors who are not Record Date Shareholders, but who otherwise acquire Rights to purchase the Fund’s Common
Shares pursuant to the Offer (e.g., Rights acquired in the secondary market), are not entitled to subscribe for any of the Fund’s
Common Shares pursuant to the Over-Subscription Privilege. If sufficient Common Shares are available, all Record Date Shareholders’
over-subscription requests will be honored in full. If these requests for Common Shares exceed the Common Shares available, the available
Common Shares will be allocated pro rata among Record Date Shareholders who over-subscribe based on the number of Rights originally issued
to them by the Fund.
Any Common Shares issued pursuant to the Over-Subscription
Privilege will be Common Shares registered under the Prospectus.]
|
[Transferability and Sale of Rights |
The Rights are transferable until the close
of business on the last Business Day prior to the Expiration Date of the Offer and will be admitted for trading on the NYSE under the
symbol during the course of the Offer.
The Offer may be terminated or extended by
the Fund at any time for any reason before the Expiration Date. If the Fund terminates the Offer, the Fund will issue a press release
announcing such termination and will direct the Subscription Agent (defined below) to return, without interest, all subscription proceeds
received to such Common Shareholders who had elected to exercise their Rights.
Trading in the Rights on the NYSE is expected
to begin two Business Days prior to the Record Date and may be conducted until the close of trading on the last NYSE trading day prior
to the Expiration Date. For purposes of this Prospectus, a “Business Day” shall mean any day on which trading is conducted
on the NYSE. The Fund will use its best efforts to ensure that an adequate trading market for the Rights will exist, although there can
be no assurance that a market for the Rights will develop.
The value of the Rights, if any, will be reflected
by their market price on the NYSE. Rights may be sold by individual holders through their broker or financial advisor. Holders of Rights
attempting to sell any unexercised Rights in the open market through their broker or financial advisor may be charged a commission or
incur other transaction expenses and should consider the commissions and fees charged prior to selling their Rights on the open market.
Rights that are sold will not confer any right
to acquire any Common Shares in any over-subscription, and any Record Date Shareholder who sells any Rights (other than those Rights that
cannot be exercised because they represent the right to acquire less than one Common Share) will not be eligible to participate in the
Over-Subscription Privilege, if any.
Trading of the Rights on the NYSE will be
conducted on a when-issued basis until and including the date on which the subscription certificates are mailed to Record Date Shareholders
and thereafter will be conducted on a regular-way basis until and including the last NYSE trading day prior to the completion of the Subscription
Period. The Rights are expected to begin trading ex-Rights one Business Day prior to the Record Date.
|
|
Shareholders
are urged to obtain a recent trading price for the Rights on the NYSE from their broker,
bank, financial advisor or the financial press.
Banks, broker-dealers and trust companies
that hold Common Shares for the accounts of others are advised to notify those persons that purchase Rights in the secondary market that
such Rights will not participate in any Over-Subscription Privilege.
Record Date Shareholders who do not wish
to exercise any or all of their Rights may instruct the Subscription Agent to try to sell any Rights they do not intend to exercise themselves.
Subscription certificates evidencing the
Rights to be sold by the Subscription Agent must be received by the Subscription Agent on or before 5:00 p.m., New York City time, on
[ ] (or, if the subscription period is extended, on or before 5:00 p.m., New York City time, six (6) Business Days prior to the
extended Expiration Date). Upon the timely receipt by the Subscription Agent of appropriate instructions to sell Rights, the Subscription
Agent will ask the Dealer Manager if it will purchase the Rights. If the Dealer Manager purchases the Rights, the sales price paid by
the Dealer Manager will be based upon the then-current market price for the Rights. If the Dealer Manager declines to purchase the Rights
of a Record Date Shareholder that have been duly submitted to the Subscription Agent for sale, the Subscription Agent will attempt to
sell such Rights in the open market. If the Rights can be sold, all of such sales will be deemed to have been effected at the weighted-average
price of all Rights sold by the Subscription Agent during the Offer, less any applicable brokerage commissions, taxes and other expenses.
Alternatively, the Rights evidenced by a subscription certificate
may be transferred in whole by endorsing the subscription certificate for transfer in accordance with the accompanying instructions.
A portion of the Rights evidenced by a single subscription certificate (but not fractional Rights) may be transferred by delivering to
the Subscription Agent a subscription certificate, properly endorsed for transfer, with instructions to register such portion of the
Rights evidenced thereby in the name of the transferee and to issue a new subscription certificate to the transferee evidencing the transferred
Rights. See “The Offer—Transferability and Sale of Rights.” |
|
|
Offering expenses |
The expenses of the Offer incurred
by the Fund (and indirectly by all of the Fund’s Common Shareholders, including those who do not exercise their Rights) are
expected to be approximately $[ ], including partial reimbursement of the Dealer Manager for its expenses incurred in
connection with the offering in an amount up to $[ ]. |
|
|
Use of proceeds |
The net proceeds of the Offer, assuming all
Common Shares offered hereby are sold at the estimated Subscription Price, are estimated to be approximately $[ ], after
deducting the sales load and expenses associated with the Offer. The Investment Manager anticipate that investment of the net proceeds
of the Offer in accordance with the Fund’s investment objectives and policies will take approximately thirty (30) days after
completion of the Offer. The Fund intends to use the proceeds of the Offer to make investments consistent with its investment objectives.
However, the investment of the net proceeds may take up to [ ] months from completion of the Offer, depending on market
conditions and the availability of appropriate securities. Pending such investment, it is anticipated that the net proceeds will
be invested in fixed income securities and other permitted investments. See “Use of Proceeds.” |
|
|
Restrictions on Foreign Common Shareholders |
The
Fund will not mail subscription certificates to Record Date Shareholders whose record addresses are outside the United States (for these
purposes, the United States includes its territories and possessions and the District of Columbia). Subscription certificates will only
be mailed to Record Date Shareholders whose addresses are within the United States (other than an APO or FPO address). Record Date Shareholders
whose addresses are outside the United States or who have an APO or FPO address and who wish to subscribe to the Offer either in part
or in full should contact the Subscription Agent in writing no later than six (6) Business Days prior to the Expiration Date. The
Fund will determine whether the Offer may be made to any such Record Date Shareholder. The Offer will not be made in any jurisdiction
where it would be unlawful to do so. If the Subscription Agent has received no instruction by the sixth (6th) Business Day
prior to the Expiration Date or the Fund has determined that the Offer may not be made to a particular Record Date Shareholder, the Subscription
Agent will attempt to sell all of such Common Shareholder’s Rights and remit the net proceeds, if any, to such Common Shareholder.
If the Rights can be sold, all of such sales will be deemed to have been effected at the weighted average price of all Rights sold by
the Subscription Agent during the Offer, less any applicable brokerage commissions, taxes and other expenses.
|
|
The
Subscription Agent will hold the Rights to which those subscription certificates relate for such Common Shareholders’ accounts
until instructions are received to exercise, sell or transfer the Rights, subject to applicable law. If no instructions have been received
by New York City time , on , Business Days prior to the Expiration Date (or, if the subscription period is extended, on or before Business
Days prior to the extended Expiration Date), the Subscription Agent will ask the Dealer Manager if it will purchase the Rights. If the
Dealer Manager declines to purchase the Rights, the Subscription Agent will attempt to sell such Rights in the open market. The net proceeds,
if any, from the sale of those Rights will be remitted to Foreign Common Shareholders. See “The Offer—Foreign Common Shareholders.” |
|
|
[Distribution Arrangements |
will
act as Dealer Manager for the Offer. Under the terms and subject to the conditions contained
in a Dealer Manager Agreement among the Fund, the Investment Manager and the Dealer Manager
(the “Dealer Manager Agreement”), the Dealer Manager will provide financial structuring
services in connection with the Offer and will solicit the exercise of Rights and participation
in the Over-Subscription Privilege (if any). The Offer is not contingent upon any number
of Rights being exercised. The Fund has agreed to pay the Dealer Manager a fee for its financial
structuring and solicitation services equal to % of the Subscription Price for each Common
Share issued pursuant to the exercise of Rights (including pursuant to the Over-Subscription
Privilege). The Dealer Manager will reallow a part of its fees to other broker-dealers that
have assisted in soliciting the exercise of Rights. The Fund has also agreed to pay the Dealer
Manager up to $ as a partial reimbursement for its reasonable out-of-pocket expenses incurred
in connection with the Offer. The Fund will also pay expenses relating to the printing or
other production, mailing and delivery expenses incurred in connection with materials related
to the Offer, including all reasonable out-of-pocket fees and expenses, if any and not to
exceed $ , incurred by the Dealer Manager, Selling Group Members (as defined below), Soliciting
Dealers (as defined below) and other brokers, dealers and financial institutions in connection
with their customary mailing and handling of materials related to the Offer to their customers.
The Fund and the Investment Manager have also agreed to indemnify the Dealer Manager against
certain liabilities, including under the Securities Act of 1933, as amended (the “Securities
Act”). The fees paid to the Dealer Manager will be borne by the Fund and indirectly
by all of its Common Shareholders, including those who do not exercise the Rights. All of
the costs of the Offer will be borne by the Fund and indirectly by the Fund’s Common
Shareholders whether or not they exercise their Rights.
Prior to the expiration of the Offer,
the Dealer Manager may purchase or exercise Rights during the Subscription Period at prices determined at the time of such exercise,
which are expected to vary from the Subscription Price. See “The Offer—Distribution Arrangements” and “—Compensation
to Dealer Manager.”]
|
Information Agent |
The
Information Agent is . Under the terms and subject to the conditions contained in an Information
Agent Agreement between the Fund and the Information Agent, the Information Agent will provide
communication, dissemination and other related services in connection with the Offer. See
“The Offer—Information Agent.
|
Risks |
See “Risks” beginning on page of the accompanying Prospectus for a discussion of factors you should consider carefully before deciding to invest in the Fund’s Common Shares.
|
Summary
of Fund expenses
The purpose of the following table and the example
below is to help you understand the fees and expenses that holders of Common Shares (“Common Shareholders”) would bear directly
or indirectly. The expenses shown in the table under “Other expenses” are estimated for the current fiscal year ended [·].
The expenses shown in the table under “Total annual expenses” are estimated based on the Fund’s average net assets for
the current fiscal year ended [·] of $[·]. The table reflects the anticipated net proceeds of the Common Shares offered pursuant
to this Prospectus Supplement and the accompanying Prospectus and assuming the Fund incurs the estimated offering expenses. If the Fund
issues fewer than all of the Common Shares available for sale pursuant to the Distribution Agreement and the net proceeds to the Fund
are less, all other things being equal, the total annual expenses shown would increase.
Common Shareholder transaction expenses |
|
|
|
Sales load (as a percentage of offering price) |
|
___ |
%(1) |
Offering expenses (as a percentage of offering price) |
|
___ |
%(2) |
Dividend reinvestment plan fees |
|
None |
(3) |
| |
Annual expenses (as a percentage of net assets attributable to | |
| |
Common Shares) | |
Advisory fee(4) | |
| [·] | % |
Other expenses | |
| [·] | % |
Total annual expenses | |
| [·] | % |
(1) Represents
the estimated commission with respect to the Common Shares being sold under this Prospectus Supplement and the accompanying Prospectus.
There is no guarantee that there will be any sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus.
Actual sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus, if any, may be less than as set forth
under “Capitalization” below. In addition, the price per Common Share of any such sale may be greater or less than the price
set forth under “Capitalization” below, depending on market price of the Common Shares at the time of any such sale.
(2) Assumes
the sale of Common Shares at a sales price per Common Share of $ ,
which represents the last reported sales price of the Common Shares on the NYSE on .
There is no guarantee that there will be any sales of Common Shares under this Prospectus Supplement and the accompanying Prospectus.
Actual sales, if any, of the Common Shares under this Prospectus Supplement and the accompanying Prospectus may be at a price greater
or less than $ per Common Share, depending on the market price of the Common
Shares at the time of any such sale.
(3) You
will pay a brokerage commission if you direct the Plan Agent to sell your Common Shares held in a dividend reinvestment account.
(4) The
Investment Manager receives a monthly fee paid at an annual rate of i) 1.10% for the first $500 million of the Fund’s average weekly
Managed Assets; (ii) 0.90% for the next $500 million of the Fund’s average weekly Managed Assets; (iii) 0.85% for the
next $500 million of the Fund’s average weekly Managed Assets; and (iv) 0.75% for the Fund’s average weekly Managed Assets
in excess of $1.5 billion. Managed Assets is defined in the investment management agreement as net assets plus the amount of any borrowings
for investment purposes.
Example
An investor would directly or indirectly pay the
following expenses on a $1,000 investment in Common Shares, assuming a 5% annual return. This example assumes that (i) all dividends
and other distributions are reinvested at NAV and (ii) the percentage amounts listed under “Total annual expenses” above
remain the same in the years shown.
The example should not be considered a representation
of future expenses or rate of return and actual Fund expenses may be greater or less than those shown.
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
|
$ |
[·] |
|
$ |
[·] |
|
$ |
[·] |
|
$ |
[·] |
|
CAPITALIZATION
The following table sets forth the audited capitalization
of the Fund as of [·] and the as adjusted capitalization of the Fund assuming the issuance of [·] Common Shares offered in this
Prospectus Supplement, including estimated offering expenses of $[·] and underwriting discounts and commissions of $[·].
|
|
Actual as of [·] |
|
As Adjusted as of [·] |
Common Shareholders’ Equity: |
|
|
|
|
|
|
Common Shares, $0.001 par value per share; [·] shares authorized (The “Actual” and “As Adjusted” columns reflect the [·] shares outstanding as of [·].) |
|
|
[·] |
|
|
[·] |
Paid-in capital* |
|
|
[·] |
|
|
[·] |
Total distributable loss |
|
|
[·] |
|
|
[·] |
Net Assets |
|
$ |
[·] |
|
$ |
[·] |
* As adjusted paid-in surplus reflects a deduction for estimated offering
expenses of $[·] and underwriting discounts and commissions of $[·].
THE OFFER
Important Terms of the Offer
The Fund is issuing to Record Date Shareholders
[transferable/non-transferable] Rights to subscribe for an aggregate of Common Shares. Each Record Date
Shareholder is being issued one [transferable/non-transferable] Right for each whole Common Share owned on the Record Date. The Rights
entitle each Record Date Shareholder to acquire one Common Share at the Subscription Price for every Rights
held (1 for ). Rights may be exercised at any time during the subscription period, which commences on ,
the Record Date, and ends at , New York City time, on ,
the Expiration Date, unless extended by the Fund.
[The Rights are transferable and will be admitted
for trading on the NYSE under the symbol during the course of the Offer. Trading in the Rights on the
NYSE is expected to be conducted until the close of trading on the NYSE on the last Business Day prior to the Expiration Date. See “
— Transferability and Sale of Rights” below. The Fund’s outstanding Common Shares are, and the Common Shares issued
pursuant to the exercise of the Rights will be, listed on the NYSE. The Fund’s Common Shares trade under the symbol “IFN.”
The Rights are evidenced by subscription certificates that will be mailed to Record Date Shareholders, except as described below under
“ — Foreign Common Shareholders.”]
The Fund will not issue fractional Common Shares
upon the exercise of Rights; accordingly, Rights may be exercised only in multiples of , except that
any Record Date Shareholder that owns fewer than Common Shares as of the close of business on the Record
Date is entitled to subscribe for one full Common Share in the Offer. Record Date Shareholders who hold two or more accounts may not combine
their fractional interests across accounts.
[The Rights are transferable. Rights holders who
are not Record Date Shareholders may purchase Common Shares in the Primary Subscription, but are not entitled to subscribe for Common
Shares pursuant to the Over-Subscription Privilege. Record Date Shareholders and Rights holders who purchase Common Shares in the Primary
Subscription and Record Date Shareholders who purchase Common Shares pursuant to the Over-Subscription Privilege are hereinafter referred
to as “Exercising Rights Holders.”]
Common Shares not subscribed for during the Primary
Subscription will be offered, by means of the Over-Subscription Privilege, to Record Date Shareholders who fully exercise the Rights issued
to them pursuant to the Offer (other than those Rights that cannot be exercised because they represent the right to acquire less than
one Common Share) and who wish to acquire more than the number of Common Shares they are entitled to purchase pursuant to the exercise
of their Rights, subject to certain limitations and subject to allotment. Investors who are not Record Date Shareholders are not entitled
to subscribe for any Common Shares pursuant to the Over-Subscription Privilege. See “ — Over-Subscription Privilege”
below.
For purposes of determining the maximum number
of Common Shares a Record Date Shareholder may acquire pursuant to the Offer, broker-dealers, trust companies, banks or others whose Common
Shares are held of record by Cede & Co. (“Cede”) or by any other depository or nominee will be deemed to be the holders
of the Rights that are issued to Cede or the other depository or nominee on their behalf.
Rights may be exercised by completing a subscription
certificate and delivering it, together with payment at the estimated Subscription Price, to the Subscription Agent. A Rights holder will
have no right to rescind a purchase after the Subscription Agent has received a completed subscription certificate together with payment
for the Common Shares offered pursuant to the Offer, except as provided under “ — Notice of NAV Decline.” Rights holders
who exercise their Rights will not know at the time of exercise the Subscription Price of the Common Shares being acquired and will be
required initially to pay for both the Common Shares subscribed for during the subscription period and, if eligible, any additional Common
Shares subscribed for pursuant to the Over-Subscription Privilege at the estimated Subscription Price of $ per
Common Share. The Fund, not investors, will pay a sales load on the aggregate Subscription Price, which will ultimately be borne
by all Common Shareholders, even those who do not exercise their Rights. For a discussion of the method by which Rights may be exercised
and Common Shares paid for, see “The Offer — Methods for Exercising Rights,” “The Offer — Payment for Common
Shares” and “Distribution Arrangements.”
There is no minimum number of Rights which must
be exercised in order for the Offer to close. The Fund will bear the expenses of the Offer, which will be paid from the proceeds of the
Offer. These expenses include, but are not limited to, the expenses of preparing and printing the prospectus for the Offer, the Dealer
Manager fee, and the expenses of Fund counsel and the Fund’s independent registered public accounting firm in connection with the
Offer.
An investor who acquires Common Shares in the Offer
issued after the record date for a monthly dividend (if any) to be paid by the Fund will not receive such dividend. Therefore, an investor
who acquires Common Shares in the Offer will not receive the Fund’s dividend payable on to Common
Shareholders of record at the close of business on and an investor who acquires Common Shares in the
Offer issued after the record date for the Fund’s dividend (which
is expected to be ), if declared by the Board, will not receive such
dividend.
The Fund has entered into the Dealer Manager Agreement,
which allows the Dealer Manager to take actions to seek to facilitate the trading market for Rights and the placement of Common Shares
pursuant to the exercise of Rights. Those actions are expected to involve the Dealer Manager purchasing and exercising Rights during the
Subscription Period at prices determined at the time of such exercise, which are expected to vary from the Subscription Price. See “Distribution
Arrangements” for additional information.
Subscription Price. [TO COME]
[Over-Subscription Privilege
Common Shares not subscribed for by Rights holders
(the “Excess Common Shares”) will be offered, by means of the Over-Subscription Privilege, to the Record Date Shareholders
who have fully exercised the Rights issued to them (other than those Rights that cannot be exercised because they represent the right
to acquire less than one Common Share) and who wish to acquire more than the number of Common Shares they are entitled to purchase pursuant
to the Primary Subscription. Investors who are not Record Date Shareholders, but who otherwise acquire Rights to purchase the Fund’s
Common Shares pursuant to the Offer (e.g., Rights acquired in the secondary market), are not entitled to subscribe for any of the Fund’s
Common Shares pursuant to the Over-Subscription Privilege.
Record Date Shareholders should indicate on the
subscription certificate, which they submit with respect to the exercise of the Rights issued to them, how many Excess Common Shares they
are willing to acquire pursuant to the Over-Subscription Privilege. If sufficient Excess Common Shares remain, all such Record Date Shareholders’
over-subscription requests will be honored in full. If requests from such Record Date Shareholders for Common Shares pursuant to the Over-Subscription
Privilege exceed the Excess Common Shares available, the available Excess Common Shares will be allocated pro rata among Record Date Shareholders
who oversubscribe based on the number of Rights originally issued to such Record Date Shareholders. The percentage of remaining Common
Shares each over-subscribing Record Date Shareholder may acquire will be rounded down to result in delivery of whole Common Shares. The
allocation process may involve a series of allocations to assure that the total number of Common Shares available for over-subscriptions
is distributed on a pro rata basis.
Banks, broker-dealers, trustees and other nominee
holders of Rights will be required to certify to the Subscription Agent, before any Over-Subscription Privilege may be exercised with
respect to any particular beneficial owner, as to the aggregate number of Rights exercised pursuant to the Primary Subscription and the
number of Common Shares subscribed for pursuant to the Over-Subscription Privilege by such beneficial owner and that such beneficial owner’s
Primary Subscription was exercised in full. Nominee Holder Over-Subscription Forms and Beneficial Owner Certification Forms will be distributed
to banks, brokers, trustees and other nominee holders of Rights with the subscription certificates. Nominees should also notify holders
purchasing Right in the secondary market that such Rights may not participate in the Over-Subscription Privilege.
The Fund will not offer or sell any Common Shares
that are not subscribed for pursuant to the Primary Subscription or the Over-Subscription Privilege.]
Expiration of the Offer
The Offer will expire at ,
New York City time, on , the Expiration Date, unless extended by the Fund.
Rights will expire without value on the Expiration
Date (including any extension); they may not be exercised thereafter. Any extension of the Offer will be followed as promptly as practicable
by announcement thereof, and in no event later than , New York City time, on the next Business Day following
the previously scheduled Expiration Date. Without limiting the manner in which the Fund may choose to make such announcement, the Fund
will not, unless otherwise required by law, have any obligation to publish, advertise or otherwise communicate any such announcement other
than by making a release to the Dow Jones News Service or such other means of announcement as the Fund deems appropriate. The Fund may
extend the Offer in its sole discretion for any reason, including as a result of a decline in the Fund’s NAV as described below
in “ — Notice of NAV Decline.”
[Transferability and Sale of Rights
The Rights are transferable until the close
of business on the last Business Day prior to the Expiration Date, , and will be admitted for trading
on the NYSE under the symbol during the course of the Offer. We may, however, extend the expiration of
the Offer.
The Offer may be terminated or extended by the
Fund at any time for any reason before the Expiration Date. If the Fund terminates the Offer, the Fund will issue a press release announcing
such termination and will direct the Subscription Agent (defined below) to return, without interest, all subscription proceeds received
to such Common Shareholders who had elected to exercise their Rights.
Although no assurance can be given that a market
for the Rights will develop, trading in the Rights on the NYSE is expected to begin Business Days prior
to the Record Date and may be conducted until the close of trading on the last NYSE trading day prior to the Expiration Date. For purposes
of this Prospectus, a “Business Day” shall mean any day on which trading is conducted on the NYSE.
The value of the Rights, if any, will be reflected
by their market price on the NYSE. Rights may be sold by individual holders through their broker or financial advisor. Holders of
Rights attempting to sell any unexercised Rights in the open market through their broker or financial advisor may be charged a commission
or incur other transaction expenses and should consider the commissions and fees charged prior to selling their Rights on the open market.
Rights that are sold will not confer any right
to acquire any Common Shares in any over-subscription, and any Record Date Shareholder who sells any Rights (other than those Rights that
cannot be exercised because they represent the right to acquire less than one Common Share) will not be eligible to participate in the
Over-Subscription Privilege, if any.
Trading of the Rights on the NYSE will be conducted
on a when-issued basis until and including the date on which the subscription certificates are mailed to Record Date Shareholders and
thereafter will be conducted on a regular-way basis until and including the last NYSE trading day prior to the completion of the Subscription
Period. The Rights are expected to begin trading ex-Rights one Business Day prior to the Record Date.
Shareholders are urged to obtain a recent trading
price for the Rights on the NYSE from their broker, bank, financial advisor or the financial press.
Banks, broker-dealers and trust companies that
hold Common Shares for the accounts of others are advised to notify those persons that purchase Rights in the secondary market that such
Rights will not participate in any Over-Subscription Privilege.
Sales through the Subscription Agent and Dealer
Manager. Record Date Shareholders who do not wish to exercise any or all of their Rights may instruct the Subscription Agent to try
to sell any Rights they do not intend to exercise themselves.
Subscription certificates evidencing the Rights
to be sold by the Subscription Agent must be received by the Subscription Agent on or before , New York
City time, on (or, if the subscription period is extended, on or before ,
New York City time, Business Days prior to the extended Expiration Date).
Upon the timely receipt by the Subscription Agent
of appropriate instructions to sell Rights, the Subscription Agent will attempt to sell such Rights, including by first offering
such Rights to the Dealer Manager for purchase by the Dealer Manager at the then-current market price on the NYSE. The Subscription Agent
will also attempt to sell any Rights attributable to Common Shareholders of record whose addresses are outside of the United States, or
who have an APO or FPO address. The Subscription Agent will offer Rights to the Dealer Manager before attempting to sell them on the NYSE,
which may affect the market price for Rights on the NYSE and reduce the number of Rights available for purchase on the NYSE.
If the Dealer Manager purchases the Rights, the
sales price paid by the Dealer Manager will be based upon the then current market price for the Rights. The proceeds from each of such
sales to the Dealer Manager will be remitted to the Subscription Agent, which will hold such proceeds in an account segregated from the
Subscription Agent’s own funds pending distribution to each selling Record Date Shareholder. It is expected that following each
such sale of Rights to the Dealer Manager, the proceeds from each such sale will be received by the Subscription Agent within Business
Days of the sale. All of such sales will be deemed to have been effected at the weighted-average price of all Rights sold by the
Subscription Agent during the Offer, less any applicable brokerage commissions, taxes and other expenses, and the proceeds will be remitted
by the Subscription Agent to the selling Record Date Shareholder(s) within Business Days following
the Expiration Date.
If the Dealer Manager declines to purchase the
Rights of a Record Date Shareholder that have been duly submitted to the Subscription Agent for sale, the Subscription Agent will attempt
to sell such Rights in the open market. The proceeds from such sales will be held by the Subscription Agent in an account segregated from
the Subscription Agent’s own funds pending distribution to the selling Record Date Shareholders. If the Rights can be sold in such
manner, all of such sales will be deemed to have been effected at the weighted-average price of all Rights sold by the Subscription Agent
during the Offer, less any applicable brokerage commissions, taxes and other expenses, and the proceeds of such open market sales
will be remitted by the Subscription Agent to the selling Record Date Shareholder(s) within Business
Days following the Expiration Date.
The Subscription Agent will also attempt to sell
(either to the Dealer Manager or in open market transactions as described above) all Rights which remain unclaimed as a result of subscription
certificates being returned by the postal authorities to the Subscription Agent as undeliverable as of the Business
Day prior to the Expiration Date. The Subscription Agent will hold the proceeds from those sales in an account segregated from the Subscription
Agent’s own funds for the benefit of such non-claiming Record Date Shareholders until such proceeds are either claimed or revert
to the state.
There can be no assurance that the Subscription
Agent will be able to sell any Rights, and neither the Fund nor the Subscription Agent has guaranteed any minimum sales price for the
Rights. If a Record Date Shareholder does not utilize the services of the Subscription Agent and chooses to use another broker-dealer
or other financial institution to sell Rights, then the other broker-dealer or financial institution may charge a fee to sell the Rights.
For a discussion of actions that may be taken by
the Dealer Manager to seek to facilitate the trading market for Rights and the placement of Common Shares pursuant to the exercise of
Rights, including the purchase of Rights and the sale during the Subscription Period by the Dealer Manager of Common Shares acquired through
the exercise of Rights and the terms on which such sales will be made, see “Distribution Arrangements.”
The Dealer Manager may also act on behalf
of its clients to purchase or sell Rights in the open market and may receive commissions from its clients for such services. Holders of
Rights attempting to sell any unexercised Rights in the open market through a broker-dealer other than the Dealer Manager may be charged
a different commission and should consider the commissions and fees charged by the broker-dealer prior to selling their Rights on the
open market. The Dealer Manager is not expected to purchase Rights as principal for its own account in order to seek to facilitate the
trading market for Rights or otherwise. See “Distribution Arrangements” for additional information.
Other transfers. The Rights evidenced
by a subscription certificate may be transferred in whole by endorsing the subscription certificate for transfer in accordance with the
accompanying instructions. A portion of the Rights evidenced by a single subscription certificate (but not fractional Rights) may be transferred
by delivering to the Subscription Agent a subscription certificate properly endorsed for transfer, with instructions to register such
portion of the Rights evidenced thereby in the name of the transferee and to issue a new subscription certificate to the transferee evidencing
such transferred Rights. In such event, a new subscription certificate evidencing the balance of the Rights, if any, will be issued to
the Record Date Shareholder or, if the Record Date Shareholder so instructs, to an additional transferee. The signature on the subscription
certificate must correspond to the name as set forth upon the face of the subscription certificate in every particular, without alteration
or enlargement, or any change. A signature guarantee must be provided by an eligible financial institution as defined in Rule 17Ad-15
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), subject to the standards and procedures adopted
by the Fund.
Record Date Shareholders wishing to transfer all
or a portion of their Rights should allow at least Business Days prior
to the Expiration Date for (i) the transfer instructions to be received and processed by the Subscription Agent; (ii) a new
subscription certificate to be issued and transmitted to the transferee or transferees with respect to transferred Rights, and to the
transferor with respect to retained Rights, if any; and (iii) the Rights evidenced by such new subscription certificate to be exercised
or sold by each recipient thereof prior to the Expiration Date. Neither the Fund, the Subscription Agent nor the Dealer Manager shall
have any liability to a transferee or transferor of Rights if subscription certificates are not received in time for exercise or sale
prior to the Expiration Date.
Except for the fees charged by the Subscription
Agent and Dealer Manager (which will be paid by the Fund), the transferor of the Rights shall be responsible for all commissions, fees
and other expenses (including brokerage commissions and transfer taxes) incurred or charged in connection with the purchase, sale or exercise
of Rights. None of the Fund, the Subscription Agent or the Dealer Manager will pay such commissions, fees or expenses. Investors who wish
to purchase, sell, exercise or transfer Rights through a broker, bank or other party should first inquire about any fees and expenses
that the investor will incur in connection with the transaction.
The Fund anticipates that the Rights will be eligible
for transfer through, and that the exercise of the Primary Subscription and Over-Subscription Privilege may be effected through, the facilities
of the Depository Trust Company (“DTC”) or through the Subscription Agent. Eligible Record Date Shareholders may exercise
the Over-Subscription Privilege in respect of exercised Rights by properly executing and delivering to the Subscription Agent, at or prior
to , New York City time, on the Expiration Date, a Nominee Holder over-subscription certificate or a
substantially similar form satisfactory to the Subscription Agent, together with payment of the Subscription Price for the number of Common
Shares for which the Over-Subscription Privilege is to be exercised.
Additional information on the transferability
of Rights. The staff of the SEC has interpreted the 1940 Act as not requiring shareholder approval of a transferable rights
offering to purchase Common Shares at a price below the then current net asset value so long as certain conditions are met, including:
(i) a good faith determination by a fund’s board that such offering would result in a net benefit to existing shareholders;
(ii) the offering fully protects shareholders’ preemptive rights and does not discriminate among shareholders (except for the
possible effect of not offering fractional Rights); (iii) management uses its best efforts to ensure an adequate trading market in
the rights for use by shareholders who do not exercise such rights; and (iv) the ratio of a transferable rights offering does not
exceed one new share for each three rights held.]
Methods for Exercising Rights
Rights may be exercised by completing and signing
the subscription certificate that accompanies this Prospectus and mailing it in the envelope provided, or otherwise delivering the completed
and signed subscription certificate to the Subscription Agent, together with payment in full for the Common Shares at the Subscription
Price by the Expiration Date.
Rights may also be exercised by contacting your
broker, trustee or other nominee, who can arrange, on your behalf, (1) to deliver a Notice of Guaranteed Delivery along with payment
of the shares prior to , New York City time, on the Expiration Date and (2) to guarantee delivery
of a properly completed and executed subscription certificate pursuant to a Notice of Guaranteed Delivery by the close of business on
the Business Day after the Expiration Date. A fee may be charged for this service. Completed subscription
certificates and related payments must be received by the Subscription Agent prior to , New York City
time, on or before the Expiration Date (unless payment is effected by means of a Notice of Guaranteed Delivery set forth under “
— Payment for Common Shares” below) at the offices of the Subscription Agent at the address set forth above. Fractional Common
Shares will not be issued upon the exercise of Rights.
All questions as to the validity, form, eligibility
(including times of receipt and matters pertaining to beneficial ownership) and the acceptance of subscription forms and the Subscription
Price will be determined by the Fund, which determinations will be final and binding. No alternative, conditional or contingent subscriptions
will be accepted. The Fund reserves the right to reject any or all subscriptions not properly submitted or the acceptance of which would,
in the opinion of the Fund’s counsel, be unlawful.
See “Distribution Arrangements” for
additional information regarding the purchase and exercise of Rights by the Dealer Manager.
Common Shareholders who are record owners. Exercising
Rights Holders who are holders of record may choose either option set forth under “ — Payment for Common Shares” below.
If time is of the essence, the Fund or the Investment Manager, in their sole discretion, may permit delivery of the subscription certificate
and payment after the Expiration Date.
Record Date Shareholders whose Common Shares
are held by a nominee. Record Date Shareholders whose Common Shares are held by a nominee, such as a bank, broker or trustee, must
contact that nominee to exercise their Rights. In that case, the nominee will complete the subscription certificate on behalf of the Record
Date Shareholder and arrange for proper payment by one of the methods set forth under “ — Payment for Common Shares”
below.
Nominees. Nominees, such as brokers,
trustees or depositories for securities, who hold Common Shares for the account of others, should notify the respective beneficial owners
of the Common Shares as soon as possible to ascertain the beneficial owners’ intentions and to obtain instructions with respect
to the Rights. If the beneficial owner so instructs, the nominee should complete the subscription certificate and submit it to the Subscription
Agent with the proper payment as described under “ — Payment for Common Shares” below.
Banks, brokers, trustees and other nominee holders
of Rights will be required to certify to the Subscription Agent, before any Over-Subscription Privilege may be exercised with respect
to any particular beneficial owner who is a Record Date Shareholder, as to the aggregate number of Rights exercised during the subscription
period and the number of Common Shares subscribed for pursuant to the Over-Subscription Privilege by the beneficial owner, and that the
beneficial owner exercised all Rights issued to it pursuant to the Offer.
Foreign Common Shareholders
Subscription certificates will not be mailed to
Record Date Shareholders whose record addresses are outside the United States (for these purposes, the United States includes its territories
and possessions and the District of Columbia) (the “Foreign Common Shareholders”). Subscription certificates will only be
mailed to Record Date Shareholders whose addresses are within the United States (other than an APO or FPO address). Record Date Shareholders
whose addresses are outside the United States or who have an APO or FPO address and who wish to subscribe to the Offer either in part
or in full should contact the Subscription Agent in writing no later than Business Days prior to the
Expiration Date. The Fund will determine whether the Offer may be made to any such Record Date Shareholder. The Offer will not be made
in any jurisdiction where it would be unlawful to do so. If the Subscription Agent has received no instruction by the Business
Day prior to the Expiration Date or the Fund has determined that the Offer may not be made to a particular Record Date Shareholder, the
Subscription Agent will attempt to sell all of such Common Shareholder’s Rights and remit the net proceeds, if any, to such Common
Shareholder. If the Rights can be sold, all of such sales will be deemed to have been effected at the weighted average price of all Rights
sold by the Subscription Agent during the Offer, less any applicable brokerage commissions, taxes and other expenses.
The Subscription Agent will hold the Rights to
which those subscription certificates relate for these Common Shareholders’ accounts until instructions are received to exercise,
sell or transfer the Rights, subject to applicable law. If no instructions have been received by , New
York City time, on , Business Days prior to the Expiration Date (or,
if the subscription period is extended, on or before Business Days prior to the extended Expiration Date),
the Subscription Agent will ask the Dealer Manager if it will purchase the Rights. If the Dealer Manager purchases the Rights, the sales
price paid by the Dealer Manager will be based upon the then current market price for the Rights. The proceeds from each of such sales
to the Dealer Manager will be remitted to the Subscription Agent, which will hold such proceeds in an account segregated from the Subscription
Agent’s own funds pending distribution to each Foreign Common Shareholder. It is expected that following each such sale of Rights
to the Dealer Manager, the proceeds from each such sale will be received by the Subscription Agent within Business
Days of the sale. All of such sales will be deemed to have been effected at the weighted-average price of all Rights sold by the Subscription
Agent during the Offer, less any applicable brokerage commissions, taxes and other expenses, and the proceeds will then be remitted by
the Subscription Agent to the Foreign Common Shareholder within Business Days following the Expiration
Date.
If the Dealer Manager declines to purchase the
Rights of a Foreign Common Shareholder, the Subscription Agent will attempt to sell such Rights in the open market. The proceeds from
such sales will be held by the Subscription Agent in an account segregated from the Subscription Agent’s own funds pending distribution
to the Foreign Common Shareholders. If the Rights can be sold in such manner, all of such sales will be deemed to have been effected at
the weighted-average price of all Rights sold by the Subscription Agent during the Offer, less any applicable brokerage commissions, taxes
and other expenses, and the proceeds will be remitted by the Subscription Agent to the Foreign Common Shareholders within three (3) Business
Days following the Expiration Date.
There can be no assurance that the Subscription
Agent will be able to sell any Rights, and neither the Fund nor the Subscription Agent has guaranteed any minimum sales price for the
Rights.
Notice of NAV Decline
The Fund, as required by the SEC’s registration
form, will suspend the Offer until it amends this prospectus if, subsequent to the effective date of the Registration Statement, of which
this prospectus is a part, the Fund’s NAV declines more than 10% from its NAV as of that date. Accordingly, the Expiration Date
would be extended and the Fund would notify Record Date Shareholders of the decline and permit Exercising Rights Holders to cancel their
exercise of Rights.
Subscription Agent
The Subscription Agent is .
Under the terms and subject to the conditions contained in a Subscription Agent Agreement between the Fund and the Subscription Agent,
the Subscription Agent in connection with the Offer will provide services related to the distribution of the subscription certificates
and the issuance and exercise of Rights to subscribe as set forth therein. The Subscription Agent will receive for its administrative,
processing, invoicing and other services a fee estimated to be approximately $ , plus reimbursement for
all out-of-pocket expenses related to the Offer.
Completed subscription certificates must be sent
together with proper payment of the Subscription Price for all Common Shares subscribed for in the Primary Subscription and the Over-Subscription
Privilege (for eligible Record Date Shareholders) to the Subscription Agent by one of the methods described below. Alternatively, Notices
of Guaranteed Delivery may be sent by email to to be received by the Subscription Agent prior to New
York City time, on the Expiration Date. The Fund will accept only properly completed and executed subscription certificates actually received
at any of the addresses listed below, prior to , New York City time, on the Expiration Date or by the
close of business on the Business Day after the Expiration Date following timely receipt of a Notice
of Guaranteed Delivery. See “ — Payment for Common Shares” below.
Subscription Certificate
Delivery Method |
|
Address/Number |
|
|
|
By Notice of Guaranteed Delivery |
|
Contact your broker-dealer, trust company, bank, or other nominee to notify the Fund of your intent to exercise, sell or transfer the Rights. |
|
|
|
By First Class Mail Only
(No Overnight /Express Mail) |
|
|
|
|
|
By Express Mail or Overnight Courier |
|
|
Delivery to an address other than one of the
addresses listed above will not constitute valid delivery.
Information Agent
The Information Agent is .
Under the terms and subject to the conditions contained in an Information Agent Agreement between the Fund and the Information Agent,
the Information Agent will provide communication, dissemination and other related services in connection with the Offer. The Information
Agent will receive a fee estimated to be $ , plus reimbursement for its out-of-pocket expenses related
to the Offer.
Any questions or requests for assistance concerning
the method of subscribing for Common Shares or for additional copies of this prospectus or subscription certificates or Notices of Guaranteed
Delivery may be directed to the Information Agent at its telephone number and address listed below:
Common Shareholders may also contact their brokers
or nominees for information with respect to the Offer.
Payment for Common Shares
Exercising Rights Holders may choose between the
following methods of payment:
(1) An Exercising Rights Holder may
send the subscription certificate together with payment by personal check for the Common Shares acquired in the Primary Subscription and
any additional Common Shares subscribed for pursuant to the Over-Subscription Privilege (for eligible Record Date Shareholders) to the
Subscription Agent based on the estimated Subscription Price of . To be accepted, the payment by personal check, together with a properly
completed and executed subscription certificate, must be received by the Subscription Agent at one of the Subscription Agent’s offices
set forth above, prior to , New York City time, on the Expiration Date.
(2) An Exercising Rights Holder may
have a bank, trust company or NYSE member deliver a Notice of Guaranteed Delivery to the Subscription Agent by email or mail, along with payment
of the full estimated Subscription Price for the Common Shares subscribed for in the Primary Subscription and any additional Common Shares
subscribed for pursuant to the Over-Subscription Privilege (for eligible Record Date Shareholders) by ,
New York City time, on the Expiration Date guaranteeing delivery of a properly completed and executed subscription certificate.
The Subscription Agent will not honor a Notice of Guaranteed Delivery unless a properly completed and executed subscription certificate
is received by the Subscription Agent by the close of business on or, if the Offer is extended, on the
second (2nd) Business Day after the Expiration Date.
All payments by an Exercising Rights Holder must
be in U.S. dollars by personal check drawn on a bank or branch located in the United States and payable to .
The Subscription Agent will deposit all funds received by it prior to the final payment date into a segregated account pending proration
and distribution of the Common Shares. The Subscription Agent may receive investment earnings on the funds deposited into such account.
The method of delivery of subscription certificates
and payment of the Subscription Price to the Fund will be at the election and risk of the Exercising Rights Holders, but if sent by mail,
it is recommended that such Certificates and payments be sent by registered mail, properly insured, with return receipt requested, and
that a sufficient number of days be allowed to ensure delivery to the Subscription Agent and clearance of payment prior to ,
New York City time, on the Expiration Date or the date guaranteed payments are due under a Notice of Guaranteed Delivery (as applicable).
Because uncertified personal checks may take at least five Business Days to clear, you are strongly urged to pay, or arrange for payment,
by means of certified or cashier’s check or money order.
Within Business
Days following the Expiration Date (the “Confirmation Date”), the Subscription Agent will direct the Transfer Agent to send
to each Exercising Rights Holder (or, if Common Shares are held by Cede or any other depository or nominee, to Cede or such other depository
or nominee) a confirmation showing (i) the number of Common Shares purchased pursuant to the Primary Subscription; (ii) the
number of Common Shares, if any, acquired pursuant to the Over-Subscription Privilege (for eligible Record Date Shareholders); (iii) the
per Common Share and total purchase price for the Common Shares; and (iv) any additional amount payable to the Fund by the Exercising
Rights Holder or any excess to be refunded by the Fund to the Exercising Rights Holder, in each case based on the Subscription Price as
determined on the Expiration Date. If any Exercising Rights Holder, if eligible, exercises his right to acquire Common Shares pursuant
to the Over-Subscription Privilege, any excess payment which would otherwise be refunded to him will be applied by the Fund toward payment
for Common Shares acquired pursuant to the exercise of the Over-Subscription Privilege. Any additional payment required from an Exercising
Rights Holder must be received by the Subscription Agent within Business
Days after the Confirmation Date. All payments by Rights holders must be in United States dollars by personal check drawn on a bank located
in the United States of America and payable to . Any excess payment
to be refunded by the Fund to an Exercising Rights Holder will be mailed by the Subscription Agent to the Rights Holder as promptly as
practicable.
Whichever of the two methods described above is
used, issuance of the Common Shares purchased is subject to collection of checks and actual receipt of payment. The Subscription Agent
will deposit all checks it receives prior to the final due date of this Offer into a segregated account pending proration and distribution
of the Common Shares. The Subscription Agent may receive investment earnings on the funds deposited into such account. If an Exercising
Rights Holder who subscribes for Common Shares pursuant to the Primary Subscription or Over-Subscription Privilege (for eligible Record
Date Shareholders) does not make payment of any amounts due by the Expiration Date or the date guaranteed payments are due under a Notice
of Guaranteed Delivery, the Subscription Agent reserves the right to take any or all of the following actions: (i) sell subscribed
and unpaid-for Common Shares to other eligible Record Date Shareholders; (ii) apply any payment actually received by it from the
Exercising Rights Holder toward the purchase of the greatest whole number of Common Shares which could be acquired by such Exercising
Rights Holder upon exercise of the Primary Subscription and/or the Over-Subscription Privilege; and/or (iii) exercise any and all
other rights or remedies to which it may be entitled, including, without limitation, the right to set off against payments actually received
by it with respect to such subscribed for Common Shares.
All questions concerning the timeliness, validity,
form and eligibility of any exercise of Rights will be determined by the Fund, whose determinations will be final and binding. The Fund
or the Investment Manager, each in its sole discretion, may waive any defect or irregularity, or permit a defect or irregularity to be
corrected within such time as it may determine, or reject the purported exercise of any Right. Subscriptions will not be deemed to have
been received or accepted until all irregularities have been waived or cured within such time as the Fund or the Investment Manager determines
in its sole discretion. The Subscription Agent and the Fund will not be under any duty to give notification of any defect or irregularity
in connection with the submission of subscription certificates or incur any liability for failure to give such notification.
Exercising Rights Holders will have no right
to rescind their subscription after receipt of their payment for Common Shares by the Subscription Agent, except as provided above under
“ — Notice of NAV Decline.”
DISTRIBUTION ARRANGEMENTS
[ will act as
Dealer Manager for the Offer. Under the terms and subject to the conditions contained in the Dealer Manager Agreement among the Dealer
Manager, the Fund and the Investment Manager, the Dealer Manager will provide financial structuring and solicitation services in connection
with the Offer and will solicit the exercise of Rights and participation in the Over-Subscription Privilege. The Offer is not contingent
upon any number of Rights being exercised. The Dealer Manager will also be responsible for forming and managing a group of selling broker-dealers
(each a “Selling Group Member” and collectively the “Selling Group Members”), whereby each Selling Group Member
will enter into a Selling Group Agreement with the Dealer Manager to solicit the exercise of Rights and to sell Common Shares purchased
by the Selling Group Member from the Dealer Manager. In addition, the Dealer Manager will enter into a Soliciting Dealer Agreement with
other soliciting broker-dealers (each a “Soliciting Dealer” and collectively the “Soliciting Dealers”) to solicit
the exercise of Rights. See “Compensation to Dealer Manager” for a discussion of fees and other compensation to be paid to
the Dealer Manager, Selling Group Members and Soliciting Dealers in connection with the Offer.
The services provided by the Dealer Manager differ
from those provided by the Investment Manager in that the Investment Manager acts as the investment adviser for the Fund and manages the
investment and reinvestment of the Fund’s assets in accordance with the Fund’s investment objectives and policies and limitations,
and generally manages the day-to-day business and affairs of the Fund. The Investment Manager has not been retained by the Fund to manage
a rights offering; instead, given the complexities of the transaction, the Fund believes that the retention of the Dealer Manager will
be beneficial.
The Fund and the Investment Manager have agreed
to indemnify the Dealer Manager for losses arising out of certain liabilities, including liabilities under the Securities Act. The Dealer
Manager Agreement also provides that the Dealer Manager will not be subject to any liability to the Fund in rendering the services contemplated
by the Dealer Manager Agreement except for any act of willful misfeasance, bad faith or gross negligence of the Dealer Manager or reckless
disregard by the Dealer Manager of its obligations and duties under the Dealer Manager Agreement.
Prior to the expiration of the Offer, the Dealer
Manager may independently offer for sale Common Shares acquired through exercising the Rights at prices that may be different from the
market price for such Common Shares or from the price to be received by the Fund upon the exercise of Rights. The Dealer Manager is authorized
to buy and exercise Rights (for delivery of Common Shares prior to the expiration of the Offer), including unexercised Rights of Record
Date Shareholders whose record addresses are outside the United States held by the Subscription Agent for which no instructions are received,
and to sell Common Shares to the public or to Selling Group Members at the offering price set by the Dealer Manager from time to time.
In addition, the Dealer Manager has the right to buy Rights offered to it by the Subscription Agent from electing Record Date Shareholders,
and the Dealer Manager may purchase such Rights as principal or act as agent on behalf of its clients for the resale of such Rights. See
“ — Sales through the Subscription Agent” above for more information.
In order to seek to facilitate the trading market
in the Rights for the benefit of non-exercising Common Shareholders, and the placement of the Common Shares to new or existing investors
pursuant to the exercise of the Rights, the Dealer Manager Agreement provides for special arrangements with the Dealer Manager. Under
these arrangements, the Dealer Manager is expected to purchase Rights on the NYSE. The number of Rights, if any, purchased by the Dealer
Manager will be determined by the Dealer Manager in its sole discretion. The Dealer Manager is not obligated to purchase Rights or Common
Shares as principal for its own account to facilitate the trading market for Rights or for investment purposes. Rather, its purchases
are expected to be closely related to interest in acquiring Common Shares generated by the Dealer Manager through its marketing and soliciting
activities. The Dealer Manager intends to exercise Rights purchased by it during the Subscription Period but prior to the Expiration Date.
The Dealer Manager may exercise those Rights at its option on one or more dates, which are expected to be prior to the Expiration Date.
The subscription price for the Common Shares issued through the exercise of Rights by the Dealer Manager prior to the Expiration Date
will be . The price and timing of these exercises are expected to differ from those described herein
for the Offer. The Subscription Price will be paid to the Fund and the dealer manager fee with respect to such proceeds will be paid by
the Fund on the applicable settlement date(s) of such exercise(s).
In connection with the exercise of Rights and receipt
of Common Shares, the Dealer Manager intends to offer those Common Shares for sale to the public and/or through Selling Group Members
it has established. The Dealer Manager may set the price for those Common Shares at any price that it determines, in its sole discretion.
The Dealer Manager has advised that the price at which such Common Shares are offered is expected to be at or slightly below the closing
price of the Common Shares on the NYSE on the date the Dealer Manager exercises Rights. No portion of the amount paid to the Dealer Manager
or to a Selling Group Member from the sale of Common Shares in this manner will be paid to the Fund. If the sales price of the Common
Shares is greater than the subscription price paid by the Dealer Manager for such Common Shares plus the costs to purchase Rights for
the purpose of acquiring those Common Shares, the Dealer Manager will receive a gain.
Alternatively, if the sales price of the Common
Shares is less than the Subscription Price for such Common Shares plus the costs to purchase Rights for the purpose of acquiring those
Common Shares, the Dealer Manager will incur a loss. The Dealer Manager will pay a concession to Selling Group Members in an amount equal
to approximately % of the aggregate price of the Common Shares sold by the respective Selling Group
Member. Neither the Fund nor the Investment Manager has a role in setting the terms, including the sales price, on which the Dealer Manager
offers for sale and sells Common Shares it has acquired through purchasing and exercising Rights or the timing of the exercise of Rights
or sales of Common Shares by the Dealer Manager. Persons who purchase Common Shares from the Dealer Manager or a Selling Group Member
will purchase Common Shares at a price set by the Dealer Manager, which may be more or less than the Subscription Price, based on the
Formula Price mechanism through which Common Shares will be sold in the Offer, and at a time set by the Dealer Manager, which is expected
to be prior to the Expiration Date, and will not have the uncertainty of waiting for the determination of the Subscription Price on the
Expiration Date.
The Dealer Manager may purchase Rights as principal
or act as agent on behalf of its clients for the resale of such Rights. The Dealer Manager may realize gains (or losses) in connection
with the purchase and sale of Rights and the sale of Common Shares, although such transactions are intended by the Dealer Manager to facilitate
the trading market in the Rights and the placement of the Common Shares to new or existing investors pursuant to the exercise of the Rights.
Any gains (or losses) realized by the Dealer Manager from the purchase and sale of Rights and the sale of Common Shares are independent
of and in addition to its fee as Dealer Manager. The Dealer Manager has advised that any such gains (or losses) are expected to be immaterial
relative to its fee as Dealer Manager.
Since neither the Dealer Manager nor persons who
purchase Common Shares from the Dealer Manager or Selling Group Members were Record Date Shareholders, they would not be able to participate
in the Over-Subscription Privilege.
There is no limit on the number of Rights the Dealer
Manager can purchase or exercise. Common Shares acquired by the Dealer Manager pursuant to the exercise of Rights acquired by it will
reduce the number of Common Shares available pursuant to the over-subscription privilege, perhaps materially, depending on the number
of Rights purchased and exercised by the Dealer Manager.
Although the Dealer Manager can seek to facilitate
the trading market for Rights as described above, investors can acquire Common Shares at the Subscription Price by acquiring Rights on
the NYSE and exercising them in the method described above under “Methods of Exercising of Rights.”
In the ordinary course of their businesses, the Dealer Manager and/or
its affiliates may engage in investment banking or financial transactions with the Fund, the Investment Manager and their affiliates.
In addition, in the ordinary course of their businesses, the Dealer Manager and/or its affiliates may, from time to time, own securities
of the Fund or its affiliates.
The principal business address of the Dealer Manager
is .]
Compensation to Dealer Manager
Pursuant to the Dealer Manager Agreement, the Fund
has agreed to pay the Dealer Manager a fee for its financial structuring and solicitation services equal to %
of the Subscription Price for each Common Share issued pursuant to the Offer, including the Over-Subscription Privilege. The Dealer Manager
will reallow to Selling Group Members in the Selling Group to be formed and managed by the Dealer Manager selling fees equal to %
of the Subscription Price for each Common Share issued pursuant to the Offer or the Over-Subscription Privilege as a result of their selling
efforts. In addition, the Dealer Manager will reallow to Soliciting Dealers that have executed and delivered a Soliciting Dealer Agreement
and have solicited the exercise of Rights, solicitation fees equal to % of the Subscription Price for
each Common Share issued pursuant to the exercise of Rights as a result of their soliciting efforts, subject to a maximum fee based on
the number of Common Shares held by such Soliciting Dealer through DTC on the Record Date. Fees will be paid to the broker-dealer designated
on the applicable portion of the subscription certificates or, in the absence of such designation, to the Dealer Manager.
The Fund has also agreed to pay the Dealer Manager
up to $ as a partial reimbursement for its reasonable out-of-pocket expenses incurred in connection with
the Offer. The Fund will also pay expenses relating to the printing or other production, mailing and delivery expenses incurred
in connection with materials related to the Offer, including all reasonable out-of-pocket fees and expenses, if any and not to exceed
$ , incurred by the Dealer Manager, Selling Group Members, Soliciting Dealers and other brokers, dealers
and financial institutions in connection with their customary mailing and handling of materials related to the Offer to their customers.
No other fees will be payable by the Fund or the Investment Manager to the Dealer Manager in connection with the Offer.
USE OF PROCEEDS
The Fund estimates total net proceeds of the offering
to be approximately $[·], based on the public offering price of $[·] per share and after deduction of the underwriting discounts
and commissions and estimated offering expenses payable by the Fund.
The Fund intends to invest the net proceeds of
the offering in accordance with its investment objective and policies as stated in the accompanying Prospectus. It is currently anticipated
that the Fund will be able to invest substantially all of the net proceeds of the offering in accordance with its investment objective
and policies within [·] months after the completion of the offering. However, until it is able to do so, the Fund may invest in temporary
investments, such as cash, cash equivalents, short-term debt securities or U.S. government securities, which could negatively impact the
Fund’s returns during such period.
Recent
developments
[TO COME, if
any]
TAX
matters
[TO COME]
LEGAL MATTERS
Certain legal matters in connection
with the Common Shares will be passed on for the Fund by Dechert LLP. Certain legal matters will be passed on by , , , as special counsel
to the underwriters in connection with the offering of Common Shares.
ADDITIONAL INFORMATION
This Prospectus Supplement
and the accompanying Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC under the Securities Act,
and the 1940 Act. This Prospectus Supplement and the accompanying Prospectus omits certain of the information contained in the Registration
Statement, and reference is hereby made to the Registration Statement and related exhibits for further information with respect to the
Fund and the Common Shares offered hereby. Any statements contained herein concerning the provisions of any document are not necessarily
complete, and, in each instance, reference is made to the copy of such document filed as an exhibit to the Registration Statement or otherwise
filed with the SEC. Each such statement is qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge through the SEC’s website (www.sec.gov).
Shares
The India Fund, Inc.
Common Shares
FORM OF
PROSPECTUS
SUPPLEMENT
Exhibit 99.2(s)
EX-FILING FEES
Calculation of Filing Fee Tables
N-2
(Form Type)
The India Fund, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered Securities
|
Security Type |
Security
Class
Title |
Fee
Calculation
Rule |
Amount
Registered |
Proposed
Maximum
Offering
Price
Per Unit |
Maximum
Aggregate
Offering Price |
Fee Rate |
Amount of
Registration
Fee |
Carry
Forward
Form
Type |
Carry
Forward
File
Number |
Carry
Forward
Initial
effective date |
Filing Fee
Previously
Paid
In
Connection
with Unsold
Securities
to be Carried
Forward |
Newly Registered Securities |
Fees to Be Paid |
Equity |
Common shares of beneficial interest, $0.001 par value per share |
Rule 457(o) |
|
|
$1,000,000(1) |
0.00014760 |
$147.60 |
|
|
|
|
Fees Previously Paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Offering Amounts |
|
$1,000,000 |
|
$147.60 |
|
|
|
|
|
Total Fees Previously Paid |
|
|
|
$0.00 |
|
|
|
|
|
Total Fee Offsets |
|
|
|
$0.00 |
|
|
|
|
|
Net Fee Due |
|
|
|
$147.60 |
|
|
|
|
| (1) | Estimated pursuant to Rule 457(o) under the Securities Act of 1933 solely for the purpose of
determining the registration fee. The proposed maximum offering price per security will be determined, from time to time, by the Registrant
in connection with the sale by the Registrant of the securities registered under the registration statement. |
India (NYSE:IFN)
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From Jul 2024 to Aug 2024
India (NYSE:IFN)
Historical Stock Chart
From Aug 2023 to Aug 2024