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Aberdeen
Global Income
Fund, Inc.
Annual Report
October 31, 2002
Letter to Shareholders
December 13, 2002
Dear Shareholder,
We present this Annual Report which covers the activities of Aberdeen Global
Income Fund, Inc. (formerly known as Aberdeen Commonwealth Income Fund, Inc.)
(the "Fund") for the year ended October 31, 2002. Included in this report is a
review of the global economy and investment markets, together with an overview
of the Fund's investments prepared by Aberdeen Asset Managers (C.I.) Limited
(the "Investment Manager").
High Credit Quality: 80.6% of Securities Rated or Deemed Equivalent to AA/Aa or
Better
The Fund's high credit quality has been maintained. Over 80.6% of assets are
rated AA/Aa or better, or are considered of equivalent quality by the Investment
Manager. An additional 11.3% is held in A rated securities.
Distributions
Cash distributions to common shareholders for the 12 months ended October 31,
2002 totaled 75 cents per share. Based on the share price of $9.35 on October
31, 2002, the cash distribution rate over the 12 months was 8.0%. Since all
distributions are paid after deducting applicable withholding taxes, the
effective distribution rate may be higher for those U.S. investors who are able
to claim a tax credit. On December 11, 2002 the Board of Directors declared a
monthly distribution of 6 cents per share payable on January 10, 2003 to all
shareholders of record as of January 2, 2003. The Board's policy is to provide
investors with a stable monthly distribution out of current income, supplemented
by realized capital gains and, to the extent necessary, paid-in capital. It is
the Board's intention that the monthly distribution of 6 cents per share be
maintained for 12 months, having begun with the February 2002 distribution
payment. This policy is subject to regular review at the Board's quarterly
meetings, unless market conditions require an earlier evaluation. The next
review is scheduled to take place in March 2003.
Net Asset Value Performance: 6.4% Per Annum Return Since Inception
The Fund's total return based on Net Asset Value ("NAV") was 13.3% over the
twelve months ended October 31, 2002 and 6.4% per annum since inception,
assuming reinvestment of distributions.
Aberdeen Global Income Fund, Inc. 1
Letter to Shareholders (continued)
Share Price Performance
The Fund's share price rose 3.9% over the year, from $9.00 on October 31, 2001
to $9.35 on October 31, 2002. The Fund's share price on October 31, 2002
represented a discount of 10.6% to the NAV per share of $10.46 on that date,
compared with the discount to NAV of 9.9% on October 31, 2001.
Implementation of Global Investment Strategy
In March 1999 the Fund's shareholders approved amendments to the Fund's
principal investment objective, investment policies and investment restrictions
to enable the Fund to invest up to 35% of its total assets in Global Debt
Securities. The term "Global Debt Securities" includes securities of issuers
located in, or securities denominated in the currency of, countries other than
Australia, Canada, New Zealand or the United Kingdom. This strategy was proposed
to be implemented in two phases. The first phase involved the immediate
investment of up to 20% of the Fund's assets in Asian debt markets. On September
3, 2001 the Board of Directors authorized the Investment Manager, in its
discretion, to implement the second phase of the global investment strategy.
This allows the Fund to invest up to 35% of its total assets in Global Debt
Securities, with a view to enhancing yield.
Global Debt: 11.8% of Total Assets Invested in Global Debt Securities
As of October 31, 2002, 11.8% of the Fund's total assets were held in Global
Debt Securities. This included 7.7% in Asian debt securities. During the twelve
months ended October 31, 2002, the Fund began to invest in regions other than
Asia and as at October 31, 2002, 1.7% of the Fund's total assets were invested
in Eastern Europe, 1.5% in Latin America and 0.9% in Western Europe. Although
these Global Debt Securities present attractive opportunities, the Fund's
ability to increase its investments in Global Debt Securities remains
constrained by the potential realization of foreign exchange losses.
2 Aberdeen Global Income Fund, Inc.
Letter to Shareholders (concluded)
Proposed Rights Offering to Common Shareholders
On October 8, 2002, the Fund filed a registration statement with the Securities
and Exchange Commission in connection with a proposed transferable rights
offering to common shareholders. The purpose of the offering is to enable the
Fund to increase its investments in Global Debt Securities and to increase the
Fund's net investment income. On November 19, 2002, the Fund issued a press
release indicating that the Rights Offering Committee of the Board of Directors
had made a determination that market conditions were not then favorable for the
commencement of the offering, and that the commencement of the offering should
be delayed until such time as market conditions may provide the Fund with an
opportunity to enhance returns to shareholders. The Board of Directors will
continue to review market conditions and all possible actions, which may include
a rights offering, to enhance shareholder returns consistent with the Fund's
primary investment objective.
For information about the Fund, including weekly updates of share price, NAV and
details of recent distributions, contact Aberdeen Asset Management Investor
Relations, by:
o calling toll free on 1-800-522-5465 or 1-212-968-8800 in the United States,
o emailing to InvestorRelations@aberdeen-asset.com or
o visiting the website at www.aberdeen-asset.us
For information about the Aberdeen group, visit the Aberdeen website at
www.aberdeen-asset.com
Yours sincerely,
/s/ Martin J. Gilbert
Martin J. Gilbert
Chairman
All amounts are U.S. dollars unless otherwise stated.
Aberdeen Global Income Fund, Inc. 3
Your Board's policy is to provide investors with a stable monthly distribution
out of current income, supplemented by realized capital gains and, to the extent
necessary, paid-in capital.
The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax
accounting rules, the amount 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 at the end of the Fund's fiscal year, October 31. However,
under the U.S. Investment Company Act of 1940, the Fund is required to indicate
the source of each distribution to shareholders. This estimated distribution
composition may vary from month to month because it may be materially impacted
by future realized gains and losses on securities and fluctuations in the value
of the currencies in which Fund assets are denominated.
The distributions for the fiscal year ended October 31, 2002 were comprised of
7% net investment income and 93% return of capital.
The amount attributed as a return of capital reflects, in part, the realization
of currency losses in the Fund's Australian bond portfolio as a result of
positioning the Fund's investments more towards global debt securities. Fund
assets are marked to market, therefore the realization of such currency losses
does not impact the Fund's net asset value. However these losses do offset
distributable income, therefore increasing the return of capital component of
the distribution.
The Investment Manager anticipates further increases in the level of investment
in global fixed income securities, which may result in the realization of
additional currency losses. The Investment Manager believes that the Fund will
benefit from the increased global exposure. Likewise, the Investment Manager
anticipates that the higher yields currently available in certain global
markets, as compared with yields currently available in Commonwealth countries,
may better position the Fund to reduce and potentially eliminate the return of
capital component of the Fund's monthly distributions. There can be no
assurance, however, that the Investment Manager's expectations will be met.
In January 2003, a Form 1099 DIV will be sent to shareholders, which will state
the amount and composition of distributions and provide information with respect
to their appropriate tax treatment.
4 Aberdeen Global Income Fund, Inc.
Dividend Reinvestment and Cash Purchase Plan
We invite you to participate in the Fund's Dividend Reinvestment and Cash
Purchase Plan ("the Plan") which allows you to automatically reinvest your
distributions in shares of the Fund's common stock at favorable commission
rates. Distributions made under the Plan are taxable to the same extent as are
cash distributions. The Plan also enables you to make additional cash
investments in shares of at least $100 per month. Under this arrangement
EquiServe Trust Company N.A. (the "Plan Agent") will purchase shares for you on
the stock exchange or otherwise on the open market on or about the 15th of each
month, unless shares of the Fund are trading at a premium, in which case the
Fund will issue additional shares. As a participant in the Plan you will have
the convenience of:
Automatic reinvestment -- the Plan Agent will automatically reinvest your
distributions, allowing you to gradually grow your holdings in the Fund;
Lower costs -- shares purchased on your behalf under the Plan will be at reduced
brokerage rates. Brokerage on share purchases is currently 2 cents per share;
Convenience -- the Plan Agent will hold your shares in non-certificated form and
will provide a detailed record of your holdings at the end of each distribution
period.
To request a brochure containing information on the Plan, together with an
authorization form, please contact the Plan Agent, EquiServe Trust Company N.A.,
P.O. Box 43011, Providence, RI 02940-3011 or call toll free on 1-800-426-5523.
Aberdeen Global Income Fund, Inc. 5
Report of the Investment Manager
Share Price Performance
On October 31, 2002 the Fund's share price was $9.35, which represented a
discount of 10.6% to the NAV of $10.46. At the date of this report the share
price was $9.99 representing a discount of 7.1% to the NAV of $10.75.
A line graph depicting the Net Asset Value vs Share Price. The values are from
February 1992 through October 2002
Apr-92 Oct-92 Apr-93 Oct-93 Apr-94 Oct-94 Apr-95 Oct-95 Apr-96
Aberdeen Global
Income Fund NAV $13.99 $13.00 $13.55 $13.42 $12.45 $12.08 $12.36 $13.13 $13.01
Oct-96 Apr-97 Oct-97 Apr-98 Oct-98 Apr-99 Oct-99 Apr-00 Oct-00
Aberdeen Global
Income Fund NAV $14.32 $13.72 $13.94 $13.40 $13.07 $13.30 $12.14 $11.36 $10.20
Apr-01 Oct-01 Apr-02 Oct-02
Aberdeen Global
Income Fund NAV $9.86 $9.99 $9.68 $10.46
Apr-92 Oct-92 Apr-93 Oct-93 Apr-94 Oct-94 Apr-95 Oct-95 Apr-96
Aberdeen Global
Income Fund
Share Price $14.75 $13.50 $13.25 $12.63 $11.38 $10.38 $10.38 $11.38 $11.00
Oct-96 Apr-97 Oct-97 Apr-98 Oct-98 Apr-99 Oct-99 Apr-00 Oct-00
Aberdeen Global
Income Fund
Share Price $11.88 $11.63 $12.44 $11.19 $10.81 $10.56 $10.38 $9.19 $8.88
Apr-01 Oct-01 Apr-02 Oct-02
Aberdeen Global
Income Fund
Share Price $8.84 $9.00 $8.88 $9.35
Distributions
The Board reduced the Fund's monthly distribution from 7.0 cents per share to
6.0 cents per share beginning with the distribution paid on February 8, 2002.
The Investment Manager continues its efforts to reallocate the portfolio toward
higher yielding Global Debt Securities, in addition to fixed income securities
denominated in the Commonwealth currencies, and also anticipates further
improvement in the value of non-U.S. dollar currencies. Together, these factors
may enhance the Fund's net investment income and
6 Aberdeen Global Income Fund, Inc.
Report of the Investment Manager (concluded)
ability to realize capital gains. There can, however, be no assurance that the
Investment Manager's expectations will be met.
Auction Market Preferred Stock (AMPS)
The Fund's $30 million of AMPS continued to be well bid at the weekly auctions.
The average interest rate paid was 1.85% over the quarter ended October 31,
2002, compared with 1.73% for 30-day U.S. commercial paper over the same period.
These rates have remained largely unchanged over the period as the U.S. Federal
Reserve has kept interest rates on hold. As of the date of this report, the rate
paid to preferred shareholder remained at 1.85%.
Over the past year, the impact of AMPS on the Fund has been positive, as the key
currencies of the Fund -- the Australian dollar, British pound, New Zealand
dollar and Canadian dollar -- all strengthened against the U.S. dollar. Most key
Asian currencies followed a similar trend, with the Korean won, Thai baht,
Singapore dollar and Indonesian rupiah all rising over the twelve months. In
addition, the fact that U.S. interest rates have remained at historic lows has
meant that the differential between AMPS funding rates and the yields at which
the Fund invests remains positive. Overall, the outlook over the medium-term for
investment markets and the portfolio in respect of these factors is considered
by the Investment Manager to be favorable and AMPS are therefore seen as having
the potential to enhance total shareholder returns in the medium-term.
On September 16, 2002, the Fund entered into a 2-year interest rate swap
agreement in order to hedge one third of the Fund's outstanding issue of AMPS.
Under the original terms of the agreement, the Fund received a floating rate of
interest (one month USD-LIBOR BBA rate) based on a notional amount of
US$10,000,000 and paid interest at a fixed rate of 2.46%. The fixed rate
interest payment was re-priced to 2.10% on October 1, 2002.
Aberdeen Global Income Fund, Inc. 7
Portfolio Composition
Geographic Composition
The table below shows the geographic composition of the Fund's total investments
as of October 31, 2002, compared with the previous quarter and twelve months:
TABLE 1: ABERDEEN GLOBAL INCOME FUND, INC. --
GEOGRAPHIC ASSET ALLOCATION
================================================================================
October 31, 2002 July 31, 2002 October 31, 2001
% % %
--------------------------------------------------------------------------------
Australia 21.7 20.0 24.2
Canada 17.4 17.9 31.2
New Zealand 12.1 11.0 3.8
United Kingdom 33.1 30.8 31.3
United States* 3.9 8.1 3.8
Asia 7.7 7.9 5.7
Eastern Europe 1.7 2.2 --
Latin America 1.5 1.4 --
Western Europe 0.9 0.7 --
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
*It is a policy of the Investment Manager to maintain a portion of the Fund's
investments in U.S. short-term securities to cover distributions and expenses.
8 Aberdeen Global Income Fund, Inc.
Portfolio Composition (continued)
Currency Composition
The table below shows the currency composition of the Fund's total investments
as of October 31, 2002, compared with the previous quarter and twelve months.
TABLE 2: ABERDEEN GLOBAL INCOME FUND, INC. -- CURRENCY ALLOCATION
================================================================================
October 31, 2002 July 31, 2002 October 31, 2001
% % %
--------------------------------------------------------------------------------
Australian Dollar 21.6 19.9 24.2
Canadian Dollar 17.1 17.6 31.2
New Zealand Dollar 13.4 12.2 3.8
British Pound 32.1 30.0 31.3
United States Dollar* 9.5 13.8 3.8
Asia Currencies 6.3 6.5 5.7
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* Includes Yankee bond investments.
Maturity Composition
As of October 31, 2002, the average maturity of the Fund's assets was 8.7 years,
compared with 7.8 years on October 31, 2001. The Fund's modified duration was
4.2 years on October 31, 2002, compared with 5.0 years on October 31, 2001. The
table below shows the maturity composition of the Fund's investments as of
October 31, 2002:
TABLE 3: ABERDEEN GLOBAL INCOME FUND, INC. -- MATURITY ANALYSIS
================================================================================
Less than 1 year 1-5 years 5-10 years Over 10 years
% % % %
--------------------------------------------------------------------------------
Australia 18.0 33.6 34.4 14.0
Canada 24.1 20.8 9.9 45.2
New Zealand 14.8 49.0 20.7 15.5
United Kingdom 15.3 18.7 18.4 47.6
United States 100.0 -- -- --
Asia 35.2 14.8 30.7 19.3
Eastern Europe -- -- -- 100.0
Latin America -- -- 46.5 53.5
Western Europe -- 100.0 -- --
--------------------------------------------------------------------------------
Total Portfolio 18.7 26.1 21.2 34.0
================================================================================
Aberdeen Global Income Fund, Inc. 9
Portfolio Composition (continued)
Sectoral Composition
The table below shows the sectoral composition of the Fund's total investments
as of October 31, 2002:
TABLE 4: ABERDEEN GLOBAL INCOME FUND, INC. -- SECTORAL COMPOSITION
================================================================================
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
% % % % %
--------------------------------------------------------------------------------
Australia 6.5 10.1 0.9 2.2 2.0
Canada 8.3 4.8 -- 0.6 3.7
New Zealand 1.9 -- 0.4 8.4 1.4
United Kingdom 23.5 -- 2.0 5.4 2.2
United States -- -- -- -- 3.9
Asia 4.0 0.4 0.2 0.5 2.6
Eastern Europe 1.7 -- -- -- --
Latin America 1.5 -- -- -- --
Western Europe -- -- -- 0.9 --
--------------------------------------------------------------------------------
Total Portfolio 47.4 15.3 3.5 18.0 15.8
================================================================================
10 Aberdeen Global Income Fund, Inc.
Portfolio Composition (concluded)
Quality of Investments
As of October 31, 2002, 80.6% of the Fund's assets were invested in securities
where either the issue or the issuer was rated at least "AA" by Standard &
Poor's Corporation or "Aa" by Moody's Investors Service, Inc. or, if unrated,
were judged to be of equivalent quality by the Investment Manager. The table
below shows the asset quality of the Fund's portfolio as of October 31, 2002:
TABLE 5: ABERDEEN GLOBAL INCOME FUND, INC. -- ASSET QUALITY
================================================================================
AAA/Aaa AA/Aa A BBB/Baa BB/Ba* B*
% % % % % %
--------------------------------------------------------------------------------
Australia 84.1 15.5 0.4 -- -- --
Canada 66.8 17.8 15.4 -- -- --
New Zealand 61.1 4.8 22.9 11.2 -- --
United Kingdom 67.9 21.5 10.6 -- -- --
United States 100.0 -- -- -- -- --
Asia 14.9 -- 36.8 28.5 19.8 --
Eastern Europe -- -- -- -- 100.0 --
Latin America -- -- -- 100.0 -- --
Western Europe -- -- -- -- -- 100.0
--------------------------------------------------------------------------------
Total Portfolio 66.1 14.5 11.3 4.4 2.8 0.9
================================================================================
* Below investment grade.
Aberdeen Global Income Fund, Inc. 11
Market Review and Outlook
AUSTRALIA
The Australian economy is currently in its eleventh year of expansion. Recent
economic data indicated that the economy's annual growth rate was 3.8% in the
second quarter of 2002. This result was underpinned by strong consumer demand,
with retail sales 8% higher than the second quarter of 2001, and a strong
housing sector, with building approvals recently pulling back from 8-year highs.
In the labor market, employment growth is currently running at an annual rate of
2% and the unemployment level has dropped to a 12-month low of 6.2%. Business
conditions improved throughout 2002 to reach their highest levels since late
1999, reflecting better profitability and employment and trading conditions at
2-year highs. Business confidence has also strengthened in the face of weaker
equity markets and threats of war. Following two 0.25% tightenings earlier in
2002, the Reserve Bank of Australia (RBA) has opted to leave interest rates
unchanged since June 2002, with their decisions likely to have been influenced
by uncertainty about the strength of the global recovery, the threat of military
action in Iraq and volatility in global equity markets. This has maintained
Australian interest rates at historically low levels and an accommodative stance
of monetary policy, although the RBA still retains a bias to raise interest
rates further.
The Australian dollar rose over the year, closing at $0.56 on October 31, 2002.
CANADA
Canadian gross domestic product (GDP) edged up 0.1% in September 2002, and
annual growth was 3.2%. Ongoing strength in the labor market is anticipated to
continue to underpin growth in the near-term. Employment has continued on the
strong side. Canada's economy has created an average of 51,111 jobs a month so
far this year, a total of 460,000 new jobs for the period from January through
October. The Bank of Canada (BoC) kept interest rates on hold in October 2002,
after announcing 75 basis points of tightening during the year. However, looking
forward it remains the BoC's view that timely removal of monetary stimulus will
be required in order to achieve a cap on inflation over the medium-term. On this
basis, the Investment Manager retains a tightening bias in forecasts for the
Canadian interest rate.
The Canadian dollar rose slightly over the year, closing at $0.64.
12 Aberdeen Global Income Fund, Inc.
Market Review and Outlook (continued)
NEW ZEALAND
The New Zealand economy started 2002 strongly, with GDP expanding by 1% in the
March quarter and 1.7% in the June quarter. The economy grew 4.0% when compared
with the second quarter of 2001, and 3.5% on average for the year ended June
2002. The key contributor to growth on the expenditure side was a lift in
primary exports, with increases in dairy, meat and forestry exports. There was a
further increase in household spending and investment in new housing also showed
strong growth. Overall, with the economy still on track to post above-potential
growth this year, the Investment Manager continues to expect the Reserve Bank of
New Zealand to increase interest rates over coming months. With the Antipodean
central banks commencing their tightening cycles ahead of the U.S. Federal
Reserve Bank, widening interest rate differentials remain a key source of
support to both the Australian and New Zealand dollars.
The New Zealand dollar rose over the year, closing at $0.49.
UNITED KINGDOM
The United Kingdom continues to enjoy a good relative growth profile. The
consumer boom, which for the last two years has offset the manufacturing slump,
appears to have turned even though the economy continues to operate close to
full employment. GDP for 2002 is still forecast to come in above 1%. The
Investment Manager has revised their growth forecast for 2003 to just over 2%,
largely because of the deteriorating economic conditions in Europe. Inflation
continues to trend lower and recent indications from the Monetary Policy
Committee points to the possibility of easings in monetary conditions in the
near future.
The pound rose over the year, closing at $1.56.
EASTERN EUROPE AND LATIN AMERICA
There were three dominant features shaping the emerging markets asset class
during the year to October 31, 2002--political and economic upheaval in Latin
America, strong credit improvement in Eastern Europe and a turbulent global
environment with economic and geopolitical volatility. The Investment Manager
believes that the outlook for emerging markets over the next 12 months is very
encouraging, with emerging market debt providing very attractive yields and the
opportunity for substantial capital gains. Investors are
Aberdeen Global Income Fund, Inc. 13
Market Review and Outlook (continued)
attracted to the risk-adjusted out-performance and broader depth and liquidity
that the emerging markets have to offer. The technical perspective of a
shrinking amount of external debt against greater demand is also encouraging.
The Investment Manager expects the global environment to improve in 2003 with
the resumption of economic growth and believes that, in this event, emerging
market debt will be among the best placed to benefit from the recovery.
ASIA
Economies
During the last quarter consumer demand was strong throughout Asia despite a
fragile global economy. This reflected the easier fiscal and monetary policy
settings prevailing in these economies. Inflationary pressures were generally
low, with economic growth in a recovery phase and excess capacity evident in a
number of industries. The Investment Manager expects that most non-pegged
currencies in the Asian region will strengthen against the U.S. dollar,
providing a natural tightening bias for many economies and that the Asian
central banks will allow this to occur to an extent. However, the Investment
Manager also believes that substantial currency appreciation is likely to be
resisted by direct intervention or, in some cases, interest rate cuts. Asian
economies have seen a sharp improvement in their export performance since late
2001. The Investment Manager anticipates that exports will probably continue to
be a significant contributor to Asian growth.
Domestic Bond and Currency Markets
Continued high levels of liquidity and ongoing concern over a weakening outlook
for the global backdrop saw domestic bonds rally over the quarter. The Fund's
total Asian currency exposure was increased during the year ended October 31,
2002 to 6.3%.
Asian Yankee (US$ denominated) Bond Market
Asian Yankee bonds posted gains over the year, with yields falling sharply as a
result of rallying U.S. Treasuries.
14 Aberdeen Global Income Fund, Inc.
Summary of Key Rates
The following table summarizes the movements of key interest rates and
currencies over the last three and twelve month periods.
================================================================================
October 31, 2002 July 31, 2002 October 31, 2001
--------------------------------------------------------------------------------
Australia
90 day bank bills 4.88% 4.95% 4.29%
10 year bonds 5.57% 5.95% 5.23%
Australian Dollar $ 0.56 $ 0.54 $ 0.50
Canada
90 day bank bills 2.72% 2.82% 2.35%
10 year bonds 5.04% 5.22% 4.86%
Canadian Dollar $ 0.64 $ 0.63 $ 0.63
New Zealand
90 day bank bills 5.91% 5.94% 4.96%
10 year bonds 6.32% 6.53% 6.18%
NZ Dollar $ 0.49 $ 0.47 $ 0.41
United Kingdom
90 day bank bills 3.80% 3.90% 4.15%
10 year bonds 4.56% 4.86% 4.53%
British Pound $ 1.56 $ 1.56 $ 1.45
South Korea
90 day T-bills 4.78% 4.74% 4.37%
10 year bonds 5.99% 6.46% 6.85%
South Korean Won* (Won)1218.50 (Won)1188.09 (Won)1290.00
Thailand
90 day deposits 1.75% 2.00% 2.50%
10 year bonds 3.79% 5.00% 5.55%
Thai Baht* (THB)43.28 (THB)42.02 (THB)44.70
Philippines
90 day T-bills 5.80% 5.59% 11.07%
10 year bonds 12.65% 12.78% 17.80%
Philippines Peso* (PHP)53.13 (PHP)51.28 (PHP)52.00
Malaysia
90 day T-bills 2.71% 2.73% 2.73%
10 year bonds 3.79% 3.97% 3.30%
Malaysian Ringgit* (MYR)3.80 (MYR)3.80 (MYR)3.80
Singapore
90 day T-bills 0.95% 0.70% 0.60%
10 year bonds 3.04% 3.72% 2.97%
Singapore Dollar* S$ 1.77 S$ 1.76 S$ 1.82
US$ Yankee Bonds**
South Korea 4.10% 4.80% 5.54%
Malaysia 4.97% 5.61% 6.57%
Philippines 7.71% 8.08% 10.19%
================================================================================
* These currencies are quoted Asian currency per U.S. dollar. The Australian,
Canadian and New Zealand dollars and the British pound are quoted U.S.
dollars per currency.
** Sovereign issues.
Aberdeen Asset Managers (C.I.) Limited
December 2002
Aberdeen Global Income Fund, Inc. 15
Portfolio of Investments
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--110.8%
AUSTRALIA--26.0%
Government Bonds--7.5%
A$
Commonwealth of Australia,
2,000 9.50%, 8/15/03 ....................................... 1,149,728
1,000 6.75%, 11/15/06 ...................................... 588,738
1,000 10.00%, 10/15/07 ..................................... 670,455
2,000 8.75%, 8/15/08 ....................................... 1,299,343
2,500 7.50%, 9/15/09 ....................................... 1,552,012
1,500 6.50%, 5/15/13 ....................................... 891,451
Federal National Mortgage
Association, Series EMTN,
2,000 6.375%, 8/15/07 ...................................... 1,153,610
------------
Total Australian
government bonds
(cost US$7,661,405) .................................. 7,305,337
------------
Semi-Government Bonds--13.4%
New South Wales--3.5%
New South Wales
Treasury Corporation,
1,500 7.00%, 4/01/04 ....................................... 855,806
4,200 7.00%, 12/01/10 ...................................... 2,530,534
------------
3,386,340
------------
Queensland--4.3%
Queensland Treasury
Corporation,
2,000 8.00%, 5/14/03 (Global) .............................. 1,129,314
1,000 8.00%, 9/14/07 (Global) .............................. 617,098
3,000 6.00%, 6/14/11 ....................................... 1,686,170
1,250 6.00%, 6/14/21 ....................................... 699,127
------------
4,131,709
------------
Victoria--2.0%
State Electricity
Commission of Victoria,
535 10.50%, 5/27/03 ...................................... 306,099
Treasury Corporation
of Victoria,
1,000 9.00%, 6/27/05 ....................................... 607,149
1,500 10.25%, 11/15/06 ..................................... 978,000
------------
1,891,248
------------
Western Australia--3.6%
Western Australia
Treasury Corporation,
2,000 8.00%, 10/15/07 ...................................... 1,245,299
3,500 8.00%, 6/15/13 ....................................... 2,267,130
------------
3,512,429
------------
Total Australian
semi-government bonds
(cost US$13,103,024) ................................. 12,921,726
------------
Supranational--2.3%
Eurofima,
3,500 9.875%, 1/17/07 ...................................... 2,265,666
------------
Total Australian dollar
supranational bonds
(cost US$2,100,295) 2,265,666
------------
Corporate Non-Banks--2.8%
Brisbane Airport
Corporation, Ltd.,
4,000 7.30%, 6/30/10 ....................................... 2,343,419
GE Capital Australia,
600 6.75%, 9/15/07 ....................................... 341,479
------------
Total Australian corporate
non-bank bonds
(cost US$2,498,473) .................................. 2,684,898
------------
Total Australian
long-term investments
(cost US$25,363,197) ................................. 25,177,627
------------
16 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
CANADA--17.6%
Government Bonds--10.5%
C$
Canadian Government,
2,500 7.25%, 6/01/07 ....................................... 1,800,288
3,000 10.25%, 3/15/14 ...................................... 2,745,608
4,000 8.00%, 6/01/23 ....................................... 3,310,380
2,000 9.00%, 6/01/25 ....................................... 1,829,294
Canada (Cayman),
750 7.25%, 6/01/08 ....................................... 535,410
------------
Total Canadian
government bonds
(cost US$10,688,890) ................................. 10,220,980
------------
Semi-Government Bonds--6.4%
British Columbia--1.7%
Province of British Columbia,
2,000 9.50%, 1/09/12 ....................................... 1,666,496
------------
Ontario--1.1%
Ontario Hydro,
500 8.50%, 5/26/25 ....................................... 418,483
Province of Ontario,
1,000 8.75%, 4/22/03 ....................................... 655,918
------------
1,074,401
------------
Quebec--3.6%
Quebec Hydro,
1,500 7.00%, 6/01/04 ....................................... 1,012,077
1,000 2.89%, 1/28/05 (b) ................................... 638,582
2,000 9.625%, 7/15/22 ...................................... 1,809,573
------------
3,460,232
------------
Total Canadian
semi-government bonds
(cost US$6,391,819) .................................. 6,201,129
------------
Banking and Finance--0.7%
Credit Local de France,
1,000 6.75%, 3/21/06 ....................................... 687,380
------------
Total Canadian banking
and finance bonds
(cost US$712,514) .................................... 687,380
------------
Total Canadian
long-term investments
(cost US$17,793,223) ................................. 17,109,489
------------
MALAYSIA--0.8%
Government Bonds--0.3%
MYR
Malaysian Government,
1,200 3.833%, 9/28/11 ...................................... 317,029
------------
Total Malaysian
government bonds
(cost US$313,841) .................................... 317,029
------------
Semi-Government Bonds--0.5%
Danamodal Nasional Berhad,
1,800 0.00%, 10/21/03 ...................................... 460,563
------------
Total Malaysia
semi-government bonds
(cost US$451,550) .................................... 460,563
------------
Total Malaysia
long-term investments
(cost US$765,391) .................................... 777,592
------------
Aberdeen Global Income Fund, Inc. 17
Portfolio of Investments (continued)
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
NEW ZEALAND--15.7%
Government Bonds--3.0%
NZ$
Canadian Government,
1,000 6.625%, 10/03/07 ..................................... 493,999
New Zealand Government,
5,000 6.50%, 4/15/13 ....................................... 2,459,382
------------
Total New Zealand
government bonds
(cost US$3,005,390) .................................. 2,953,381
------------
Utilities--0.5%
Electricity Corporation of
New Zealand Ltd.,
1,000 8.00%, 2/15/03 ....................................... 488,826
------------
Total New Zealand
utility bonds
(cost US$582,649) .................................... 488,826
------------
Banking and Finance--10.2%
Bayerische Hypo-und
Vereinsbank AG,
2,000 7.00%, 9/14/05 ....................................... 975,288
Commerzbank AG,
3,500 8.00%, 2/07/05 ....................................... 1,759,805
GMAC INTL Finance BV,
3,500 8.00%, 3/14/07 ....................................... 1,705,199
Landesbank Baden-
Wuerttemberg,
4,200 5.25%, 1/06/05 ....................................... 2,006,992
Landesbank Hessen-
Thueringen Girozentrale,
4,000 7.00%, 12/17/07 ...................................... 1,991,080
Transpower Finance Ltd.,
500 8.00%, 6/15/05 ....................................... 253,469
WestPac Trust Securities,
2,500 6.00%, 4/28/04 ....................................... 1,211,016
------------
Total New Zealand
banking and finance bonds
(cost US$9,331,444) .................................. 9,902,849
------------
Corporate Non-Banks--0.8%
Housing New Zealand,
1,500 8.00%, 11/15/06 ...................................... 771,052
------------
Total New Zealand
corporate non-bank bonds
(cost US$761,956) .................................... 771,052
------------
Supranational--1.2%
European Investment Bank,
2,300 7.00%, 12/17/07 ...................................... 1,149,853
------------
Total New Zealand
supranational bonds
(cost US$1,141,503) .................................. 1,149,853
------------
Total New Zealand
long-term investments
(cost US$14,822,942) ................................. 15,265,961
------------
PHILIPPINES--0.4%
Government Bonds--0.4%
PHP
Philippine Government,
7,000 16.50%, 2/25/09 ...................................... 160,562
10,000 13.00%, 4/25/12 ...................................... 195,180
------------
355,742
------------
Total Philippine
long-term investments
(cost US$408,663) .................................... 355,742
------------
18 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
SINGAPORE--0.7%
Government bonds--0.5%
SG$
Singapore Government,
100 3.00%, 11/01/02 ...................................... 56,635
50 4.00%, 3/01/07 ....................................... 30,831
700 4.625%, 7/01/10 ...................................... 447,485
------------
Total Singapore
government bonds
(cost US$500,956) .................................... 534,951
------------
Utilities--0.2%
Singapore Power,
250 4.60%, 9/21/07 ....................................... 156,016
------------
Total Singapore
utility bonds
(cost US$143,733) .................................... 156,016
------------
Total Singapore
long-term investments
(cost US$644,689) .................................... 690,967
------------
SOUTH KOREA--1.8%
Government Bonds--1.8%
US$
EMBARC Ltd. Linked
Note Series 1-9,
2,000 6.152%, 8/18/03 (b)(c) ............................... 1,730,660
------------
Total Korean
long-term investments
(cost US$1,894,966) .................................. 1,730,660
------------
THAILAND--1.0%
Government Bonds--0.9%
THB
Thailand Government,
550 8.25%, 10/14/03 (d) .................................. 13,445
12,000 8.00%, 12/08/06 (d) .................................. 337,413
15,000 5.375%, 11/30/11 ..................................... 389,410
4,000 5.50%, 1/18/17 ....................................... 104,034
------------
Total Thailand
government bonds
(cost US$788,013) .................................... 844,302
------------
Utilities--0.1%
Eastern Water Resources
Development and Management
Company Limited,
5,000 9.00%, 7/22/04 (d) ................................... 126,966
------------
Total Thailand
utility bonds
(cost US$126,092) .................................... 126,966
------------
Corporate Non-Banks--0.0%
Advanced Info Service
Public Company Limited,
1,300 6.50%, 3/20/03 (d) ................................... 30,500
------------
Total Thailand corporate
non-bank bonds
(cost US$34,455) ..................................... 30,500
------------
Total Thailand
long-term investments
(cost US$948,560) .................................... 1,001,768
------------
Aberdeen Global Income Fund, Inc. 19
Portfolio of Investments (continued)
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
UNITED KINGDOM--39.4%
Government Bonds--31.0%
(pound)
United Kingdom Treasury,
500 5.00%, 6/07/04 ....................................... 797,744
1,250 8.50%, 12/07/05 ...................................... 2,204,881
1,100 7.50%, 12/07/06 ...................................... 1,930,734
500 5.75%, 12/07/09 ...................................... 842,092
1,500 8.00%, 9/27/13 ....................................... 3,032,470
600 8.00%, 12/07/15 ...................................... 1,251,011
3,000 8.00%, 6/07/21 ....................................... 6,668,581
4,850 6.00%, 12/07/28 ...................................... 9,279,819
Republic of Finland,
1,000 8.00%, 4/07/03 ....................................... 1,589,260
1,250 10.125%, 6/22/08 ..................................... 2,458,404
------------
Total United Kingdom
government bonds
(cost US$29,082,367) ................................. 30,054,996
------------
Utilities--2.6%
British Gas PLC,
1,400 8.875%, 7/08/08 ...................................... 2,553,991
------------
Total United Kingdom
utility bonds
(cost US$2,195,083) .................................. 2,553,991
------------
Banking and Finance--5.8%
Abbey National
Treasury Services PLC,
1,250 8.00%, 4/02/03 ....................................... 1,986,469
Barclays Bank PLC,
1,000 9.875%, 5/29/49 ...................................... 1,892,030
Lloyds Bank PLC,
500 7.375%, 3/11/04 ...................................... 811,159
Prudential Finance B.V.,
500 9.375%, 6/04/07 ...................................... 910,334
------------
Total United Kingdom
banking and finance bonds
(cost US$5,057,007) .................................. 5,599,992
------------
Total United Kingdom
long-term investments
(cost US$36,334,457) ................................. 38,208,979
------------
UNITED STATES--7.4%
Yankee Bonds--7.4%
US$
AES China Generating
Company,
100 10.125%, 12/15/06 .................................... 93,000
Cable & Wireless
Optus Finance,
100 8.00%, 6/22/10 ....................................... 114,809
CITIC Ka Wah Bank,
50 9.125%, 5/31/12 ...................................... 52,675
CNOOC Finance Ltd.,
50 6.375%, 3/08/12 ...................................... 54,056
Kazkommerts INTL BV,
1,000 10.125%, 5/08/07 ..................................... 1,068,447
Korea Development Bank,
200 5.25%, 11/16/06 ...................................... 209,893
PCCW-HKTC Capital Ltd.,
200 7.75%, 11/15/11 ...................................... 205,700
Petronas Capital Ltd.,
100 7.00%, 5/22/12 ....................................... 108,151
Republic of Bulgaria,
1,000 8.25%, 1/15/15 ....................................... 1,063,000
Republic of Colombia,
904 9.75%, 4/09/11 ....................................... 868,501
Republic of Philippines,
50 8.375%, 3/12/09 ...................................... 50,250
50 9.375%, 1/18/17 ...................................... 51,240
1,100 9.875%, 1/15/19 ...................................... 1,084,270
Russian Federation,
1,000 11.00%, 7/24/18 ...................................... 1,150,000
United Mexican States,
1,000 8.30%, 8/15/31 ....................................... 986,500
------------
Total United States
long-term bonds
(cost US$6,921,857) .................................. 7,160,492
------------
Total long-term investments
(cost US$105,897,945) ................................ 107,479,277
------------
20 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (concluded)
As of October 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--13.6%
Australia--2.5%
A$
Banque Nationale de Paris
Fixed Deposit,
4,395 4.50%, 11/01/02
(cost US$2,439,260) .................................. 2,439,260
------------
Canada--5.0%
C$
State Street Bank and
Trust Company Time Deposit,
7,630 2.00%, 11/06/02
(cost US$4,884,138) ................................ 4,873,842
------------
New Zealand--1.9%
NZ$
State Street Bank and
Trust Company Fixed Deposit,
3,810 4.25%, 11/06/02
(cost US$1,854,327) .................................. 1,852,422
------------
United Kingdom--3.0%
(pound)
State Street Bank and
Trust Company Fixed Deposit,
1,820 3.875%, 11/06/02
(cost US$2,834,468) .................................. 2,847,390
------------
United States--1.2%
US$
1,135 Repurchase Agreement, State
Street Bank and Trust Company,
1.72% dated 10/31/02, due 11/01/02
in the amount of $1,135,054
(collateralized by $825,000
U.S. Treasury Notes, 8.125%
due 5/15/21; value $1,160,775)
(cost US$1,135,000) .................................. 1,135,000
------------
Total short-term investments
(cost US$13,147,193) ................................. 13,147,914
------------
-------------------------------------------------------------------------------
Total Investments--124.4% (cost US$119,045,138) 120,627,191
Net unrealized appreciation on forward foreign currency
exchange contracts--0.1% (e) 60,197
Other assets in excess of liabilities--6.4% 6,263,120
Liquidation value of preferred stock--(30.9%) (30,000,000)
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders--100.0% $ 96,950,508
===============================================================================
(a) Portfolio securities are listed based on currency in which they are traded;
A$--Australian dollar
C$--Canadian dollar
CNY--Chinese yuan
INR--Indian rupee
KRW--South Korean won
MYR--Malaysian ringgit
NZ$--New Zealand dollar
PHP--Philippine peso
SG$--Singapore dollar
THB--Thailand baht
(pound)--British pound
US$--United States dollar
(b) Coupon changes periodically upon a predetermined schedule. Stated interest
rate in effect at October 31, 2002.
(c) Value of security is linked to the value of Government of Korea 7.70%,
8/16/03 and the movement of the South Korean Won.
(d) Securities, or a portion thereof, pledged as collateral for forward
currency exchange contracts.
(e) Forward foreign currency exchange contracts entered into as of October 31,
2002 were as follows:
-----------------------------------------------------------------------------------------
Purchases
Unrealized
Contracts to Receive In exchange for Settlement Date Value Appreciation
----------------------------------------------------------------------------------------
CNY 828,020 US$ 100,000 1/24/03 US$ 100,004 $ 4
INR 9,911,310 US$ 201,000 11/06/02 US$ 205,033 4,033
KRW 3,133,250,000 US$ 2,500,000 1/13/03 US$ 2,556,774 56,774
PHP 20,886,040 US$ 388,000 1/29/03 US$ 387,386 (614)
-------
$60,197
=======
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 21
Statement of Assets and Liabilities
October 31, 2002
Assets
Investments, at value (cost $119,045,138) .......................... $ 120,627,191
Foreign currency, at value (cost $1,752,916) ....................... 1,766,723
Cash ............................................................... 3,897,732
Interest receivable ................................................ 2,623,139
Deferred rights offering costs ..................................... 84,480
Net unrealized appreciation on forward foreign exchange contracts .. 60,197
Prepaid expenses ................................................... 42,267
-------------
Total assets .................................................... 129,101,729
-------------
Liabilities
Payable for investments purchased .................................. 1,176,226
Dividends and distributions payable--common stock .................. 555,972
Deferred rights offering costs payable ............................. 84,480
Investment management fee payable .................................. 76,590
Administration fee payable ......................................... 23,566
Net unrealized depreciation on interest rate swap .................. 21,600
Accrued expenses and other liabilities ............................. 212,787
-------------
Total liabilities ............................................... 2,151,221
-------------
Preferred stock
$.001 par value per share and $25,000 liquidation value per share .. 30,000,000
-------------
Net Assets Applicable to Common Shareholders ....................... $ 96,950,508
=============
Composition of Net Assets Applicable to Common Shareholders
Common Stock (par value $.001 per share) ........................... $ 9,266
Paid-in capital in excess of par ................................... 116,420,251
Accumulated investment loss ........................................ (2,618,140)
Accumulated net realized losses on investment transactions ......... (2,800,164)
Net unrealized appreciation on investments ......................... 3,253,939
Accumulated net realized foreign exchange losses ................... (15,728,554)
Net unrealized foreign exchange losses ............................. (1,586,090)
-------------
Net Assets Applicable to Common Shareholders ....................... $ 96,950,508
=============
Net asset value per common share based on (9,266,209 shares
issued and outstanding) ......................................... $ 10.46
=============
See notes to financial statements.
22 Aberdeen Global Income Fund, Inc.
Statement of Operations
For the Year Ended October 31, 2002
Net Investment Income
Income
Interest and discount earned (net of foreign withholding taxes of $138,391) .. $ 6,819,376
------------
Expenses
Investment management fee .................................................... 796,649
Administration fee ........................................................... 245,123
Directors' fees and expenses ................................................. 169,874
Reports to shareholders ...................................................... 141,724
Custodian's fees and expenses ................................................ 127,429
Legal fees and expenses ...................................................... 111,081
Independent accountant's fees and expenses ................................... 106,134
Auction agent's fees and expenses ............................................ 84,288
Investor relations fees and expenses ......................................... 59,902
Insurance expense ............................................................ 50,800
Registration fees ............................................................ 25,000
Transfer agent's fees and expenses ........................................... 19,832
Miscellaneous ................................................................ 66,817
------------
Total operating expenses .................................................. 2,004,653
------------
Net investment income ........................................................... 4,814,723
------------
Realized and Unrealized Gains (Losses) on Investments and
Foreign Currencies
Net realized losses on investment transactions ............................... (95,694)
Net realized foreign exchange losses ......................................... (2,959,182)
------------
(3,054,876)
------------
Net change in unrealized appreciation of investments ......................... (1,002,482)
Net change in unrealized foreign exchange losses ............................. 11,114,486
------------
10,112,004
------------
Net gain on investments and foreign currencies .................................. 7,057,128
------------
Net increase in Net Assets from Operations ...................................... 11,871,851
------------
Dividends to Preferred Shareholders from
Net Investment Income ........................................................ (604,200)
------------
Net Increase in Net Assets Applicable to Common Shareholders
Resulting from Operations .................................................... $ 11,267,651
============
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 23
Statement of Cash Flows
For the Year Ended October 31, 2002
Increase (Decrease) in Cash (Including Foreign Currency)
Cash flows provided from operating activities
Interest received (excluding discount and premium amortization of $531,362) .. $ 7,154,354
Operating expenses paid ...................................................... (1,963,942)
Proceeds from sales and maturities of short-term portfolio investments, net .. 2,081,507
Purchases of long-term portfolio investments ................................. (38,910,662)
Proceeds from sales of long-term portfolio investments ....................... 43,704,746
Dividends paid to preferred shareholders ..................................... (620,076)
Other ........................................................................ (68,089)
------------
Net cash provided from operating activities ............................... 11,377,838
------------
Cash flows used for financing activities
Dividends paid to common shareholders ........................................ (6,948,963)
------------
Effect of exchange rate on cash ................................................. 231,974
------------
Net increase in cash ............................................................ 4,660,849
Cash at beginning of year .................................................... 1,003,606
------------
Cash at end of year .......................................................... $ 5,664,455
============
Reconciliation of Net Increase in Net Assets Applicable to
Common Shareholders from Operations to Net Cash
(Including Foreign Currency) Provided from Operating Activities
Net increase in net assets applicable to common shareholders
resulting from operations ................................................. $ 11,267,651
------------
Decrease in investments ...................................................... 5,558,438
Dividends to preferred shareholders .......................................... 604,200
Net realized losses on investments ........................................... 95,694
Net realized foreign exchange losses ......................................... 2,959,182
Net change in unrealized appreciation/depreciation on investments ............ 1,002,482
Net change in unrealized foreign exchange losses ............................. (11,114,486)
Increase in interest receivable .............................................. (196,384)
Increase in payable for investments purchased ................................ 1,176,226
Increase in deferred offering costs payable .................................. 84,480
Decrease in payable for preferred dividends .................................. (15,876)
Increase in deferred offering costs .......................................... (84,480)
Increase in accrued expenses and other liabilities ........................... 40,711
------------
Total adjustments ............................................................ 110,187
------------
Net cash provided from operating activities ..................................... $ 11,377,838
============
See notes to financial statements.
24 Aberdeen Global Income Fund, Inc.
Statements of Changes in Net Assets
Applicable to Common Shareholders
For the Year
Ended October 31,
-----------------------------
2002 2001
------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Applicable to
Common shareholders
Operations
Net investment income ...................................... $ 4,814,723 $ 6,563,995
Net realized losses on investment transactions ............. (95,694) (420,172)
Net realized foreign exchange losses ....................... (2,959,182) (4,541,817)
Net change in unrealized appreciation/depreciation
of investments .......................................... (1,002,482) 3,076,210
Net change in unrealized foreign exchange gains/losses ..... 11,114,486 2,579,210
------------ ------------
Net Increase in Net Assets from Operations ................. 11,871,851 7,257,426
------------ ------------
Dividends to preferred shareholders from net investment
income ..................................................... (604,200) (1,429,668)
------------ ------------
Net Increase in Net Assets Applicable to Common
Shareholders Resulting from Operations ..................... 11,267,651 5,827,758
------------ ------------
Dividends and distributions to common shareholders from
Net investment income ...................................... (365,846) (3,178,810)
Tax return of capital ...................................... (6,490,454) (4,604,057)
------------ ------------
Net decrease in net assets applicable to common shareholders
resulting from dividends and distributions ................. (6,856,300) (7,782,867)
------------ ------------
Total increase (decrease) in net assets applicable to
common shareholders ........................................ 4,411,351 (1,955,109)
Net Assets Applicable to Common Shareholders
Beginning of year(a) .......................................... 92,539,157 94,494,266
------------ ------------
End of year (including accumulated investment loss of
($2,618,140) and ($664,511), respectively) ................. $ 96,950,508 $ 92,539,157
============ ============
(a) Amounts have been restated to conform to new requirements for presentation
of preferred stock under generally accepted accounting principles.
See notes to financial statements.
Aberdeen Global Income Fund, Inc. 25
Financial Highlights
For the Year Ended October 31,
---------------------------------------------------------------------
2002(1) 2001 2000 1999 1998
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance:
Net asset value per common share,
beginning of year ............................ $ 9.99 $ 10.20 $ 12.14 $ 13.07 $ 13.94
--------- --------- --------- --------- ---------
Net investment income ........................... 0.52 0.71 0.81 0.87 0.99
Net realized and unrealized gains (losses)
on investments and foreign currencies ........ 0.76 0.07 (1.68) (0.70) (0.73)
Dividends to preferred shareholders:
From net investment income ................... (0.07) (0.15) (0.16) (0.11) (0.14)
From net realized gains on
investment transactions(1)................. -- -- (0.04) (0.04) (0.04)
--------- --------- --------- --------- ---------
Total from investment operations applicable
to common shareholders .................... 1.21 0.63 (1.07) 0.02 0.08
--------- --------- --------- --------- ---------
Dividends and distributions to
common shareholders:
From net investment income ................... (0.04) (0.34) (0.71) (0.62) (0.87)
Tax return of capital ........................ (0.70) (0.50) -- -- --
From net realized gains on
investment transactions(1) ................ -- -- (0.16) (0.33) (0.08)
--------- --------- --------- --------- ---------
Total dividends and distributions ............ (0.74) (0.84) (0.87) (0.95) (0.95)
--------- --------- --------- --------- ---------
Net asset value per common share, end of year ... $ 10.46 $ 9.99 $ 10.20 $ 12.14 $ 13.07
========= ========= ========= ========= =========
Market value, end of year ....................... $ 9.35 $ 9.00 $ 8.8750 $ 10.375 $ 10.8125
========= ========= ========= ========= =========
Number of shares of common stock
outstanding (000 omitted) .................... 9,266 9,266 9,266 9,266 9,266
Total investment return based on:(2)
Market value ................................. 12.45% 11.20% (6.11)% 4.89% (5.59)%
Net asset value .............................. 13.30% 7.40% (7.78)% 1.53% 1.82%
Ratio to Average Net Assets Applicable to
Common Shareholders(3)/Supplementary Data:
Net assets applicable to common shareholders,
end of year (000 omitted) .................... $ 96,951 $ 92,539 $ 94,494 $ 112,504 $ 121,096
Average net assets applicable to common
shareholders (000 omitted) ................... 92,148 93,987 105,657 119,257 122,266
Operating expenses .............................. 2.17% 2.11% 2.02% 1.95% 1.70%
Net investment income(3) ........................ 4.57% 5.46% 5.39% 5.53% 6.17%
Portfolio turnover .............................. 39% 17% 29% 40% 36%
Senior securities (preferred stock)
outstanding (000 omitted) .................... $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
Asset coverage on preferred stock at year end ... 423% 408% 415% 475% 504%
--------------------------------------------------------------------------------------------------------------------------
(1) As required, effective November 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year
ended October 31, 2002 was to decrease net investment income per share by
$0.10, decrease net realized and unrealized loss on investments and foreign
exchange losses by $0.10 and decrease the ratio of net investment income to
average net asset on common shareholders from 5.54% to 4.57%. Per share
ratios and supplemental data for periods prior to November 1, 2001 have not
been restated to reflect this change in presentation.
(2) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day
of each period reported. Dividends and distributions, if any, are assumed
for the purposes of this calculation to be reinvested at prices obtained
under the Fund's dividend reinvestment plan. Total investment return does
not reflect brokerage commissions.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders. Ratio of net investment income before preferred stock
dividends to average net assets of common shareholders is 5.22%, 6.98%,
7.12%, 6.76% and 7.50%, respectively.
See notes to financial statements.
26 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements
Note 1. Investment Objectives
Aberdeen Global Income Fund, Inc. (formerly known as Aberdeen Commonwealth
Income Fund, Inc.) (the "Fund") was incorporated in Maryland on June 28, 1991,
as a closed-end, non-diversified investment company.
The Fund's principal investment objective is to provide high current income by
investing primarily in fixed-income securities denominated in the Commonwealth
Currencies. As a secondary investment objective, the Fund seeks capital
appreciation, but only when consistent with its principal investment objective.
The Fund will seek to achieve its investment objective through investment in
fixed-income securities denominated in the Commonwealth Currencies and in Global
Debt Securities. In order to comply with a rule adopted by the Securities and
Exchange Commission under the Investment Company Act of 1940 regarding fund
names, the Board of directors has adopted an investment policy that, for as long
as the name of the Fund remains Aberdeen Global Income Fund, Inc., it shall be
the policy of the Fund normally to invest at least 80% of its net assets plus
the amount of any borrowings for investment purposes, in debt securities. This
80% investment policy is a non-fundamental policy of the Fund and may be changed
by the Board of Directors upon 60 days prior written notice to shareholders. The
ability of issuers of debt securities held by the Fund to meet their obligations
may be affected by economic developments in a specific industry, country or
region.
Note 2. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Basis of Presentation: The financial statements of the Fund are prepared in
accordance with accounting principles generally accepted in the United States of
America using the United States dollar as both the functional and reporting
currency. However, the Commonwealth Currencies (excluding New Zealand) are the
functional currencies for Federal tax purposes (see Taxes below).
Foreign Currency Translation: Foreign currency amounts are translated
Aberdeen Global Income Fund, Inc. 27
Notes to Financial Statements (continued)
into United States dollars on the following basis:
(i) market value of investment securities, other assets and liabilities--at the
closing rates of exchange as reported by a major bank;
(ii) purchases and sales of investment securities, income and expenses--at the
rates of exchange prevailing on the respective dates of such transactions.
The Fund isolates that portion of the results of operations arising as a result
of changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of the securities held at fiscal period end.
Similarly, the Fund isolates the effect of changes in foreign exchange rates
from the fluctuations arising from changes in the market prices of portfolio
securities sold during the fiscal year.
Net realized foreign exchange losses includes realized foreign exchange gains
and losses from sales and maturities of portfolio securities, sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the amounts of
interest, discount and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net unrealized
foreign exchange gains include changes in the value of portfolio securities and
other assets and liabilities arising as a result of changes in the exchange
rate. Accumulated realized and unrealized foreign exchange losses shown in the
composition of net assets represent foreign exchange losses for book purposes
that have not yet been recognized for tax purposes.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin, including
unanticipated movements in the value of the foreign currency relative to the
U.S. dollar.
The exchange rates of the Commonwealth Currencies utilized by the Fund at
October 31, 2002 were US$.5550 to A$1.00, US$0.6388 to C$1.00, US$0.4862 to
NZ$1.00, US$1.5645 to (pound)1.00.
Security Valuation: The Fund's Board of Directors has adopted Pricing and
Valuation Procedures (the "Procedures") to be used in determining the value of
the
28 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
assets held by the Fund. In accordance with the Procedures, investments are
stated at value. Investments for which market quotations are readily available
are valued at the last trade price on the date of determination as obtained from
a pricing source. If no such trade price is available, such investments are
valued at the quoted bid price or the mean between the quoted bid and asked
price on the date of determination as obtained from a pricing source.
Securities purchased with a maturity of less than 60 days are valued at
amortized cost. Securities purchased with a maturity of greater than 60 days are
valued at current market quotations until the 60th day prior to maturity. At
that time, the value of the security on the 61st day prior to maturity is
amortized on a straight-line basis to value the security for the remaining 60
days. Securities for which market quotations are not readily available are
valued at fair value in good faith using methods set forth in the Procedures.
Repurchase Agreements: In connection with transactions in repurchase agreements
with U.S. financial institutions, it is the Fund's policy that its custodian/
counterparty segregates the underlying collateral securities, the value of which
exceeds the principal amount of the repurchase transaction, including accrued
interest. To the extent that any repurchase transaction exceeds one business
day, the collateral is valued on a daily basis to determine its adequacy. If the
seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses from
security and currency transactions are calculated on the identified cost basis.
Interest income is recorded on an accrual basis. Discounts and premiums on
securities purchased are accreted or amortized on an effective yield basis over
the estimated lives of the respective securities. Expenses are accrued on a
daily basis.
Change in Accounting Principles: As required, effective November 1, 2001, the
Fund has adopted the provisions of the AICPA Audit and Accounting Guide, Audits
of Investment Companies, and began amortizing premium on debt securities for
financial statement reporting purposes only. This change has no impact
Aberdeen Global Income Fund, Inc. 29
Notes to Financial Statements (continued)
on the net asset value of the Fund. Prior to November 1, 2001, the Fund did not
amortize premiums on debt securities.
The Fund determined that the adoption of the premium amortization policy
resulted in a cumulative reduction of $3,549,925 in the recorded cost of
investments (but not their market value) and a corresponding $3,549,925 increase
in net unrealized appreciation on investments, based on investments owned by the
Fund on November 1, 2001.
The effect of this change for the year ended October 31, 2002, was to decrease
net investment income by $893,719, increase net unrealized appreciation/
depreciation on investments by $1,405,942, and decrease net realized losses by
$2,299,661. Because the Fund determines its required distributions under Federal
income tax laws, adoption of this principle will not affect the amount or
composition of distributions paid to shareholders. The statements of changes in
net assets and financial highlights for prior periods have not been restated to
reflect the change in accounting principle.
Derivative Financial Instruments: The Fund is authorized to use derivatives to
manage both currency and interest rate risk for global debt securities. With
respect to investments denominated in Commonwealth currencies, derivatives can
only be used to manage interest rate risk. Losses may arise due to changes in
the value of the contract if the counterparty does not perform under the
contract.
Interest Rate Swap: The Fund may engage in certain swap transactions, in order
to obtain a desired return at a lower cost than if the Fund had invested
directly in the asset that yielded the desired return. An interest rate swap is
an agreement between two parties which involves exchanging floating rate and
fixed rate interest payments for a specified period of time. Interest rate swaps
involve the accrual and exchange of interest payments between the parties.
During the term of the swap, changes in the value of the swap are recognized as
unrealized gains and losses by "marking-to-market" to reflect the market value
of the swap. When the swap is terminated, the Fund will record a realized gain
or loss equal to the difference, if any, between the proceeds from (or cost of)
the closing transaction and the Fund's basis in the
30 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
contract. The Fund is exposed to credit risk in the event of non-performance by
the other party to the interest rate swap. However, the Fund does not anticipate
non-performance by any counterparty.
Forward Currency Contracts: A forward currency contract involves an obligation
to purchase and sell a specific currency at a future date, which may be any
fixed number of days from the date of the contract agreed upon by the parties,
at a price set at the time of the contract. The foreign currency contract is
marked-to-market daily and the change in market value is recorded by the Fund as
an unrealized gain or loss. When the forward currency contract is closed, the
Fund records a realized gain or loss equal to the difference between the value
at the time it was opened and the value at the time it was closed.
Financial futures contracts: A futures contract is an agreement between two
parties to buy and sell a security for a set price on a future date. Upon
entering into a contract, the Fund deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the contract.
Such receipts or payments are known as variation margin and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed. As
of October 31, 2002, there were no open futures contracts.
Options: When the fund writes an option, an amount equal to the premium received
by the Fund is reflected as an asset and an equivalent liability. The amount of
the liability is subsequently marked to market to reflect the current market
value of the option written. When a security is purchased or sold through an
exercise of an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Fund enters
into a closing transaction), the Fund realizes a gain or loss on the option to
the extent of the
Aberdeen Global Income Fund, Inc. 31
Notes to Financial Statements (continued)
premiums received or paid (or gain or loss to the extent the cost of the closing
transaction exceeds the premium paid or received). As of October 31, 2002, there
were no open option contracts.
Dividends and distributions: Dividends and distributions to common shareholders
are recorded on the ex-dividend date. These are based upon net investment
income, and capital and currency gains determined in accordance with income tax
regulations which may differ from accounting principles generally accepted in
the United States of America. These differences are primarily due to
amortization of premium and discount and differing treatments for foreign
currencies and loss deferrals. Dividends and distributions to preferred
shareholders are accrued on a daily basis and are determined as described in
Note 7.
Reclassification of Capital Accounts: For the year ended October 31, 2002, the
Fund decreased accumulated investment loss by $4,242,074, increased accumulated
net realized losses on investments by $2,255,840 and decreased accumulated net
realized foreign exchange losses by $4,504,220, resulting in a decrease to
paid-in capital in excess of par by $6,490,454. Net investment income, net
realized losses on investments and net assets were not affected by this change.
Taxes: For Federal income and excise tax purposes, substantially all of the
Fund's transactions are accounted for using the functional currencies.
Accordingly, only realized currency gains and losses resulting from the
repatriation of any of the Commonwealth Currencies into U.S. dollars or another
Commonwealth Currency and realized currency gains and losses on non-Commonwealth
currencies are recognized for tax purposes.
No provision has been made for United States of America Federal income taxes
because it is the Fund's policy to meet the requirements of the United States of
America Internal Revenue Code applicable to regulated investment companies and
to distribute substantially all of its taxable income to shareholders. Under the
applicable foreign tax law, a withholding tax may be imposed on interest and
discounts earned at various rates.
Cash Flow Information: The Fund invests in securities and distributes dividends
from net investment income and net realized gains on investment and currency
32 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
transactions which are paid in cash or are reinvested at the discretion of
shareholders. These activities are reported in the Statements of Changes in Net
Assets and additional information on cash receipts and cash payments is
presented in the Statement of Cash Flows. Cash includes domestic and foreign
currency.
Use of Estimates: The preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
Note 3. Agreements
The Fund has agreements with Aberdeen Asset Managers (C.I.) Limited (the
"Investment Manager"), Aberdeen Asset Management Limited (the "Investment
Adviser"), and Princeton Administrators, L.P. (the "Administrator"). The
Investment Manager and the Investment Adviser are direct or indirect
wholly-owned subsidiaries of Aberdeen Asset Management Plc. The Investment
Manager has entered into an agreement with CIBC World Markets, Inc. (the
"Consultant").
The Investment Manager makes investment decisions on behalf of the Fund on the
basis of recommendations and information furnished to it by the Investment
Adviser and the Consultant, including the selection of and the placement of
orders with brokers and dealers to execute portfolio transactions on behalf of
the Fund.
The management agreement provides the Investment Manager with a fee, computed
weekly and payable monthly, at the following annual rates: 0.65% of the Fund's
average weekly total net assets of both common and preferred shareholders up to
$200 million, 0.60% of such assets between $200 million and $500 million and
0.55% of such assets in excess of $500 million. The administration agreement
provides the Administrator with a fee computed and payable monthly at the annual
rate of 0.20% of the Fund's average weekly total net assets of both common and
preferred shareholders, subject to a minimum annual payment of $150,000 ($12,500
per month). The Investment Manager pays fees to the Investment Adviser and the
Consultant for their services rendered.
Aberdeen Global Income Fund, Inc. 33
Notes to Financial Statements (continued)
The Investment Manager informed the Fund that it paid $305,369 to the Investment
Adviser and $12,000 to the Consultant during the year ended October 31, 2002.
Under terms of an Investor Relations Services Agreement, Aberdeen Fund Managers,
Inc. ('Aberdeen'), an affiliate of the Fund's Investment Manager and Investment
Adviser, serves as the Fund's investor relations services provider. This
agreement provides Aberdeen with a monthly retainer of $4,000 plus out-of-pocket
expenses. During the year ended October 31, 2002, the Fund incurred fees of
approximately $54,269 for the services of Aberdeen. As of October 31, 2002,
$5,200 was due to Aberdeen. Investor relations fees and expenses in the
statement of operations include certain out-of-pocket expenses.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the year ended October 31, 2002 aggregated $40,086,888 and $43,619,781,
respectively.
On September 16, 2002, the Fund entered into a 2-year interest rate swap
agreement in order to hedge one third of the Fund's outstanding issue of AMPS.
Under the original terms of the agreement, the Fund received a floating rate of
interest (one month USD-LIBOR BBA rate) based on a notional amount of
$10,000,000 and paid interest at a fixed rate of 2.46%. The fixed rate interest
payment was repriced at 2.10% on October 1, 2002. Net receipts of payments of
such amounts are exchanged every 28 days. At October 31, 2002 the unrealized
depreciation of interest rate swaps was $21,600. The swap is scheduled to
terminate September 16, 2004.
Net interest expense of $4,824 on interest rate swaps during the year is
included in miscellaneous expenses in the Statement of Operations.
The United States of America federal income tax basis of the Fund's investments
at October 31, 2002 was $119,435,914 and accordingly, net unrealized
appreciation for United States federal income tax purposes was $1,191,277
(gross unrealized appreciation--$2,545,785, gross unrealized
depreciation -- $1,354,508.)
34 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (continued)
Note 5. Distributions to Shareholders
The tax character of distributions paid during the fiscal year ended October 31,
2002 was as follows:
October 31,
2002
Distribution paid from:
Ordinary Income $ 970,046
Net Long-Term Capital Gains --
Tax Return of Capital 6,490,454
------------
Total Distribution $ 7,460,500
============
As of October 31, 2002, the components of accumulated earnings on a tax basis
were as follows:
Undistributed ordinary income--net $ 0
Undistributed long-term capital gains--net 0
------------
Total undistributed earnings--net $ 0
Capital loss carryforward (2,780,196)*
Unrealized gains/(losses)--net (16,698,813)**
------------
Total accumulated earnings/(losses)--net $(19,479,009)
============
* At October 31, 2002, the Fund had a net capital loss carryforward of
$2,780,196, of which $428,662 expires in 2009 and $2,351,534 expires in
2010. This amount will be available to offset like amounts of any future
taxable gains.
** The difference between book-basis and tax-basis unrealized gains/(losses)
is attributable to: the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, differing
treatments for foreign currencies, wash sales and loss deferrals.
Note 6. Common Stock
There are 300 million shares of $.001 par value common stock authorized and
9,266,209 shares outstanding at October 31, 2002.
On March 1, 2001, the Board of Directors approved a stock repurchase program.
The stock repurchase program allows the Fund to repurchase up to 10% of its
outstanding common stock in the open market during any 12-month period, if and
when the discount to net asset value is at least 10%. Through October 31, 2002,
there have been no share repurchases through this program.
On October 8, 2002, the Fund filed a registration statement with the Securities
and Exchange Commission in connection with a proposed transferable rights
offering to common shareholders. The purpose of the offering is to enable the
Fund to increase its investments in Global Debt Securities and increase the
Fund's net investment income. For the year ended October 31, 2002, the Fund
incurred $84,480 of expenses in connection with the proposed rights offering.
These expenses are being deferred and will reduce the future proceeds from the
offering. If the Fund does not consummate the rights offering, the deferred
expenses will be recognized.
Aberdeen Global Income Fund, Inc. 35
Notes to Financial Statements (continued)
Note 7. Preferred Stock
There are 100 million shares of $.001 par value of Auction Market Preferred
Stock ("Preferred Stock") authorized. The preferred shares have rights as
determined by the Board of Directors. The 1,200 shares of Preferred Stock
outstanding consist of one series, W-7. The Preferred Stock has a liquidation
value of $25,000 per share plus any accumulated but unpaid dividends whether or
not declared.
Dividends on the Preferred Stock are cumulative at a rate typically reset every
seven days based on the results of an auction. In order to correlate the receipt
of the swap interest with the payment of the dividends on the Preferred Stock,
the Fund has requested, and received approval for, a 28 day Special Dividend
Period. It is anticipated that the Fund will continue to request successive
Special Dividend Periods for the period during which the swap is in place.
Dividend rates ranged from 1.60% to 2.70% during the year ended October 31,
2002. Under the Investment Company Act of 1940, the Fund may not declare
dividends or make other distributions on shares of common stock or purchase any
such shares if, at the time of the declaration, distribution or purchase, asset
coverage with respect to the outstanding Preferred Stock would be less than
200%.
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated but
unpaid dividends. The Preferred Stock is also subject to mandatory redemption at
$25,000 per share plus any accumulated but unpaid dividends, whether or not
declared, if certain requirements relating to the composition of the assets and
liabilities of the Fund as set forth in the Articles of Incorporation are not
satisfied.
The holders of Preferred Stock have voting rights equal to the holders of common
stock (one vote per share) and will vote together with holders of shares of
common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Fund's directors.
A recent Securities and Exchange Commission staff announcement,
36 Aberdeen Global Income Fund, Inc.
Notes to Financial Statements (concluded)
Emerging Issues Task Force Discussion ("EITF D"-98), Classification and
Measurement of Redeemable Securities, was issued providing new guidance related
to the presentation of Preferred Shares in the financial statements. To conform
with this guidance, the Fund has reclassified its Preferred Stock outside of net
assets in the Statement of Assets and Liabilities and restated its Statement of
Changes in Net Assets to reflect only net assets applicable to common
shareholders.
Note 8. Subsequent Dividends
Subsequent to October 31, 2002, the Board of Directors of the Fund declared
distributions of $0.06 per common share payable on December 6, 2002 and January
10, 2003 to common shareholders of record on November 29, 2002 and January 2,
2003, respectively.
Subsequent to October 31, 2002, dividends and distributions declared and paid on
preferred shares totaled approximately $51,288 for the outstanding preferred
share series through December 2, 2002.
Aberdeen Global Income Fund, Inc. 37
Report of Independent Accountants
To the Shareholders and the Board of Directors of
Aberdeen Global Income Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations, of cash
flows and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of Aberdeen Global Income Fund,
Inc. (the "Fund," formerly known as Aberdeen Commonwealth Income Fund, Inc.) at
October 31, 2002, the results of its operations and its cash flows for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 2002 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 16, 2002
38 Aberdeen Global Income Fund, Inc.
Federal Tax Information: Dividends and Distributions (unaudited)
Common Shareholders:
Of the monthly cash distributions paid by the Fund during the taxable year ended
October 31, 2002, 5.71% represents income from foreign sources. Additionally,
0.85% of the monthly cash distributions is attributable to foreign withholding
taxes.
Preferred Shareholders:
Of the ordinary income distributions paid by the Fund during the taxable year
ended October 31, 2002, 86.61% represents income from foreign sources.
Additionally, 12.83% of the ordinary income distributions is attributable to
foreign withholding taxes.
The foreign taxes paid or withheld represent taxes incurred by the Fund on
interest received from foreign sources. Foreign taxes paid or withheld should be
included as foreign source taxable income with an offsetting deduction from
gross income or as a credit for taxes paid to foreign governments. You should
consult your tax advisor regarding the appropriate treatment of foreign taxes
paid.
ABERDEEN GLOBAL INCOME FUND, INC.
Aberdeen Global Income Fund, Inc. 39
Dividend Reinvestment and Cash Purchase Plan (unaudited)
Common shareholders are automatically enrolled in the Fund's Dividend
Reinvestment and Cash Purchase Plan (the "Plan"). Under the Plan, all
distributions of dividends and capital gains, net of any applicable withholding
tax, will automatically be reinvested by EquiServe Trust Company N.A. (the "Plan
Agent") in additional shares of common stock of the Fund unless an election is
made to receive distributions in cash. Generally, shareholders who do not
participate in the Plan will receive all distributions in cash paid by check in
United States dollars mailed directly to the shareholders of record (or if the
shares are held in street or other nominee name, then to the nominee) by the
Plan Agent. A shareholder whose shares are held by a broker or nominee that does
not provide a dividend reinvestment program may be required to have his shares
registered in his own name to participate in the Plan.
The Plan Agent serves as agent for the shareholders in administering the Plan.
Dividends and capital gains distributions payable to Plan participants will be
promptly invested. If the Fund declares a dividend or capital gain distribution
payable in stock to shareholders who are not Plan participants, then Plan
participants will receive that dividend or distribution in newly-issued shares
on identical terms and conditions.
In every other case, Plan participants will receive shares on the following
basis: If, on payable date, the market price of the Fund's common stock plus any
brokerage commission is equal to or exceeds net asset value per share, Plan
participants will receive newly-issued shares of the Fund valued at the greater
of net asset value per share or 95% of the then current market price. If, on the
other hand, the net asset value per share plus any brokerage commissions exceed
the market price at such time, the Plan Agent will buy shares of common stock in
the open market. If the market price plus any applicable brokerage commission
exceeds the net asset value per share as last determined before the Plan Agent
has completed its purchases, the Plan Agent will suspend making open market
purchases and shall invest the balance available in newly-issued shares valued
at the greater of net asset value per share as last so determined or 95% of the
then current market value.
There is no charge to participants for reinvesting dividends and capital gain
distributions, except for certain brokerage commissions, as described below. The
Plan Agent's fees for the handling of the reinvestment of dividends and
distributions are paid by the Fund. There will be no brokerage commissions
charged with respect to shares issued directly by the Fund. However, each
participant pays a pro rata share of brokerage commissions incurred with respect
to the Plan Agent's open market purchases in connection with the reinvestment of
40 Aberdeen Global Income Fund, Inc.
Dividend Reinvestment and Cash Purchase Plan (unaudited) (concluded)
dividends and distributions. The automatic reinvestment of dividends and
distributions does not relieve participants of any federal income tax that may
be payable on such dividends and distributions.
The Plan also allows participants to make voluntary cash investments by sending
additional funds to the Plan Agent in any amount of at least $100 for the
purchase of shares on the open market. Voluntary payments will be invested on or
shortly after the 15th of the month, and in no event more than 45 days after
such date except where temporary curtailment or suspension of purchases is
necessary to comply with applicable provisions of federal securities law. Cash
investments may be commingled with the funds of other shareholders of the Fund
held by the Plan Agent and the average price (including brokerage commissions)
of all shares purchased by the Plan Agent will be the price per share allocable
to each participant. Participants will also be charged a service fee for each
voluntary cash investment.
Participants in the Plan may withdraw some or all of their shares from the Plan
upon written notice to the Plan Agent and will receive stock certificates for
all full shares. The Plan Agent will convert any fractional shares to cash at
the then-current market price and send a check to the participant for the
proceeds. If, by giving proper notice to the Plan Agent, participants request
cash, the Plan Agent will sell the shares and send the participant the proceeds,
less a service fee of $2.50 and less brokerage commissions.
The Fund reserves the right to amend or terminate the Plan either in full or
partially upon 90 days' written notice to shareholders of the Fund.
All questions concerning the Plan should be directed to the Plan Agent by
calling 1-800-426-5523.
Aberdeen Global Income Fund, Inc. 41
MANAGEMENT OF THE FUND
The names of the Directors and Officers of the Fund, their addresses, ages and
principal occupations during the past five years are provided in the tables
below. Directors that are deemed "interested persons" (as that term is defined
in Section 2(a)(19) of the Investment Company Act of 1940, as amended) of the
Fund, the Investment Manager or the Investment Adviser are included in the table
below under the heading "Interested Directors." Directors who are not interested
persons as described above are referred to in the table below under the heading
"Independent Directors."
BOARD OF DIRECTORS INFORMATION
===================================================================================================================================
INTERESTED DIRECTORS
===================================================================================================================================
Number of
Term of Funds in Fund
Position(s) Office and Complex*
Held with Length of Principal Occupation(s) Overseen by Other Directorships
Name, Address & Age the Fund Time Served During Past Five Years Director Held by Director
-----------------------------------------------------------------------------------------------------------------------------------
Laurence S. Freedman A.M. Class I Term expires Mr. Freedman has over 35 3 EquitiLink Holdings Pty.
25 Lime Street Director 2005; Director years of experience in funds Limited (holding company);
Suite 405 since 1992 management with a focus on Aberdeen Leaders Limited
Sydney, NSW 2000 global investment analysis. (investment company); TEN
Australia Prior to founding EquitiLink Network Holdings Limited
Age: 59 in 1981, he was Director of (television network); EIML
Investment at BT Australia Australia Pty. Limited
Limited. Mr. Freedman's areas (investment company); Link
of fund management Enterprises (International)
specialization include Pty. Ltd.; Link Traders Pty.
investment in resource and Ltd.; Link Traders (Aust)
development companies, Pty. Ltd.; Letota Pty. Ltd.
international economies and
the geopolitical impact on
investment markets. He was
Chairman of the Fund from
2000 to 2001 and President of
the Fund from its inception
until 2001. Mr. Freedman was
founder of the Fund's
Investment Adviser, and until
December 2000, he was Joint
Managing Director of the
Fund's Investment Adviser and
a Director of the Fund's
Investment Manager.
Mr. Freedman was also
Chairman from 1995 to 2001,
President from 1985 to 2000
and Director since 1985, of
Aberdeen Australia Equity
Fund, Inc.; Chairman from
1995 to 2000, Vice President
from 1986 to 2001, and
Director from 1986 to 2000,
of Aberdeen Asia-Pacific
Income Fund, Inc.; Joint
Managing Director from 1986
to 2000 of Aberdeen
Asia-Pacific Income
Investment Company Limited;
and Joint Managing Director
from 1986 to 2000 of
EquitiLink Limited (holding
company).
------------------------------------------------------------------------------------------------------------------------------------
Martin J. Gilbert** Chairman Term as Mr. Gilbert is the Chief 2 Aberdeen Asia-Pacific Income
One Albyn Place of Board, Director Executive and an Executive Fund, Inc.; Aberdeen
Aberdeen, AB10 1YG Class III expires 2004; Director of Aberdeen Asset Asia-Pacific Income
United Kingdom Director Director since Management PLC, which was Investment Company Limited.
Age: 47 2001 established in 1983 and is
the parent company of the Mr. Gilbert is also a
Fund's Investment Manager and director of foreign funds
Investment Adviser. He is one advised by entities
of the founding directors of affiliated with the
Aberdeen Asset Management PLC Investment Manager and the
and has been involved in the Investment Adviser.
investment management
industry since 1982, after he * Aberdeen Asia-Pacific
qualified as a chartered Income Fund, Inc. and
accountant. He has been Aberdeen Australia Equity
Chairman of the Board of the Fund, Inc. have a common
Fund and of Aberdeen Investment Manager and
Asia-Pacific Income Fund, Investment Adviser with
Inc. since 2001. He has been the Fund, and may thus be
a Director of Aberdeen Asset deemed to be part of the
Management Limited (the same "Fund Complex" as
Fund's Investment Adviser) the Fund.
and Aberdeen Asset Managers
(C.I.) Limited (the Fund's ** Mr. Freedman is deemed to
Investment Manager) since be an interested person
2001. because of his ownership
of securities of Aberdeen
Asset Management PLC, the
parent company of the
Fund's Investment Manager
and Investment Adviser.
Mr. Gilbert is deemed to
be an interested person
because of his affiliation
with the Fund's Investment
Manager and Investment
Adviser.
-----------------------------------------------------------------------------------------------------------------------------------
42 & 43 Aberdeen Global Income Fund, Inc.
MANAGEMENT OF THE FUND (continued)
BOARD OF DIRECTORS INFORMATION (continued)
===================================================================================================================================
INDEPENDENT DIRECTORS
====================================================================================================================================
Number of
Term of Funds in Fund
Position(s) Office and Complex*
Held with Length of Principal Occupation(s) Overseen by Other Directorships
Name, Address & Age the Fund Time Served During Past Five Years Director Held by Director
------------------------------------------------------------------------------------------------------------------------------------
David L. Elsum, A.M. Class I Term expires Mr. Elsum has over 20 3 Aberdeen Australia Equity
9 May Grove Director 2005; Director years of experience in Fund, Inc.; Aberdeen
South Yarra, since 1992 investment and insurance Asia-Pacific Income Fund,
Victoria 3141 markets. He was a member Inc.; Aberdeen Asia-Pacific
Australia of the Corporations and Income Investment Company
Age: 65 Securities Panel of the Limited; Melbourne Wholesale
Australian Securities Fish Market Pty. Ltd.; Queen
Commission until 2000, Victoria Market Pty. Ltd.
was a member of the (municipal market);
Australian Federal Financial Planning
Government Association Limited
Administrative Appeals (industry association);
Tribunal until 2001, Aberdeen Leaders Limited
Chairman of Audit (investment company).
Victoria (government
statutory authority)
from 1997 to 2000, and
has been a member of the
State of Victoria
Regulator-General Appeal
Panel since 2001. Mr.
Elsum is Chairman of
Stodart Investment Pty.
Ltd. Previously, he was
founding Managing
Director of Capel Court
Investment Bank, and
Chief Executive of
several major public
companies including The
MLC Limited (insurance)
and President of the
State of Victoria
Superannuation Fund
(pension fund
management).
------------------------------------------------------------------------------------------------------------------------------------
Neville J. Miles Class III Term expires Mr. Miles has over 20 3 Aberdeen Australia Equity
2 Paddington Street Director 2004; Director years of international Fund, Inc.; Aberdeen
Paddington, NSW 2021 since 1999 investment banking Asia-Pacific Income Fund,
Australia experience. He was Inc.; Aberdeen Asia-Pacific
Age: 56 formerly head of Income Investment Company
Corporate Treasury at Limited; Aberdeen Leaders
Westpac Banking Limited (investment
Corporation and Managing company).
Director of Ord Minnett
Securities Limited
(stockbrokers). Mr.
Miles has extensive
experience in the areas
of corporate
acquisitions and equity
offerings.
Mr. Miles is currently
an investor and real
estate developer. He has
served, for over five
years, as a Director of
Ballyshaw Pty. Ltd.
(investing/consulting)
and Dawnglade Pty. Ltd.
(real estate
investment), and has
served as a Director of
Villepen Pty. Ltd. (real
estate investment
company) since 1999;
Sonic Communications
Pty. Ltd. since 2000,
and Commsecure Limited
since 2002.
------------------------------------------------------------------------------------------------------------------------------------
44 & 45 Aberdeen Global Income Fund, Inc.
MANAGEMENT OF THE FUND (continued)
BOARD OF DIRECTORS INFORMATION (continued)
====================================================================================================================================
INDEPENDENT DIRECTORS (continued)
====================================================================================================================================
Number of
Term of Funds in Fund
Position(s) Office and Complex*
Held with Length of Principal Occupation(s) Overseen by Other Directorships
Name, Address & Age the Fund Time Served During Past Five Years Director Held by Director
------------------------------------------------------------------------------------------------------------------------------------
William J. Potter Class II Term expires Mr. Potter has extensive 3 Aberdeen Australia Equity
236 West 27th Street Director 2003; Director experience in investment Fund, Inc.; Aberdeen
3rd Floor since 1992 banking and fund Asia-Pacific Income Fund,
New York, NY 10001 management. Mr. Potter Inc.; Aberdeen Asia-Pacific
Age: 54 has held senior Income Investment Company
positions with Toronto Limited; National Foreign
Dominion Bank, Barclays Trade Counsel (trade
Bank PLC, and Prudential association); Alexandria
Securities, Inc., as Bancorp (banking group in
well as board of Cayman Islands); E.C. Power,
director positions with Inc. (energy company);
investment funds Alexandria Funds.
involving over $20
billion in assets since
1983. Mr. Potter has
been involved in the
Australian capital
markets since 1974,
including management and
board of director
positions with a noted
Australian brokerage
house. Mr. Potter is
President of a U.S.
investment bank and has
securities licenses in
both the U.S. and
Canada. Mr. Potter also
has extensive securities
underwriting experience
in various capital
markets with an emphasis
on natural resources.
Mr. Potter is currently
President of Ridgewood
Group International
Ltd., an international
consulting and merchant
banking company, and
President of Ridgewood
Capital Funding, Inc., a
private placement
securities firm.
------------------------------------------------------------------------------------------------------------------------------------
Peter D. Sacks Class II Term expires Mr. Sacks is currently 3 Aberdeen Australia Equity
445 King Street West, Director 2003; Director Managing Partner of Fund, Inc.; Aberdeen
4th Floor since 1992 Toron Capital Markets, Asia-Pacific Income Fund,
Toronto, Ontario Inc., a company he Inc.; Aberdeen Asia-Pacific
M5V 1K4 Canada established in 1988 to Income Investment Company
Age: 57 design and manage Limited; Aberdeen G7 Trust;
customized equity, fixed First Horizon Holdings LTD,
income and currency First Horizon Capital Corp.,
portfolios for Cirrus Financial Concepts
individual and corporate Inc.
clients. Mr. Sacks also
serves on the Boards of
Directors of Toron
Capital Markets, Inc.
(portfolio management),
Toron Capital
Management, Ltd. and
Toron Asset Management,
Inc.
------------------------------------------------------------------------------------------------------------------------------------
Dr. Anton E. Schrafl Preferred Term expires Dr. Schrafl was Deputy 2 Aberdeen Asia-Pacific Income
Wiesenstrasse 7 Stock 2003; Director Chairman of Holcim Fund, Inc.; Aberdeen
8001 Zurich Director since 1993 Limited, a global Asia-Pacific Income
Switzerland manufacturer and Investment Company Limited.
Age: 70 distributor of cement
and allied products
until May 2002. He
currently serves as
Chairman of the Board of
Directors of Dynavest,
AG, a corporation
focusing on investments.
Dr. Schrafl is also on
the Board of Directors
of Organogenesis, Inc.,
a medical products
company involved in
biotechnological tissue
engineering, and Apogee
Technology Inc., a
manufacturer of digital
amplifiers.
------------------------------------------------------------------------------------------------------------------------------------
46 & 47 Aberdeen Global Income Fund, Inc.
MANAGEMENT OF THE FUND (continued)
BOARD OF DIRECTORS INFORMATION (concluded)
====================================================================================================================================
INDEPENDENT DIRECTORS (concluded)
====================================================================================================================================
Number of
Term of Funds in Fund
Position(s) Office and Complex*
Held with Length of Principal Occupation(s) Overseen by Other Directorships
Name, Address & Age the Fund Time Served During Past Five Years Director Held by Director
------------------------------------------------------------------------------------------------------------------------------------
E. Duff Scott Class I Term expires Mr. Scott is currently 1 Aberdeen Asia-Pacific Income
8 Sunnydene Crescent Director 2005; Director President of Multibanc Investment Company Limited;
Toronto, Ontario since 1992 Financial Corporation Aberdeen G7 Trust; Multibanc
M4N 3J6 Canada and Multibanc NT Financial Corporation and
Age: 66 Financial Corporation, Multibanc NT Financial
investment holding Corporation (investment
companies. He also holding companies), QLT Inc.
serves as Chairman of (biopharmaceuticals); Perle
QLT Inc., a Systems, Inc. (computers),
biopharmaceutical Lions Gate Entertainment
company. Previously, Mr. (media); Becker Milk Company
Scott was Chairman of (real estate); Telco Split
Peoples Jewelers Co. (split share company);
Corporation (retail Simmons Income Trust.
jeweler) and Chairman of
the Toronto Stock
Exchange.
------------------------------------------------------------------------------------------------------------------------------------
John T. Sheehy Preferred Term expires Mr. Sheehy has over 30 3 Aberdeen Australia Equity
560 Sylvan Avenue Stock 2003; Director years' experience in Fund, Inc.; Aberdeen
Englewood Cliffs, Director since 1992 investment banking with Asia-Pacific Income Fund,
NJ 07632 companies such as J.P. Inc.; Aberdeen Asia-Pacific
Age: 60 Morgan & Company and Income Investment Company
Bear, Stearns & Co. Inc. Limited.
His specialty areas
include securities
valuation, public
offerings and private
placements of debt, and
equity securities,
mergers and acquisitions
and management buyout
transactions. He has
been Senior Managing
Director of B.V. Murray
and Company (investment
banking) since 2001, and
Managing Member of The
Value Group LLC (private
equity) since 1997.
------------------------------------------------------------------------------------------------------------------------------------
Warren C. Smith Class III Term expires Mr. Smith is a Managing 1 Aberdeen Asia-Pacific Income
1002 Sherbrooke St. W. Director 2004; Director Editor with BCA Investment Company Limited;
Suite 1600 since 1992 Publications, Aberdeen G7 Trust.
Montreal, independent publishers
Quebec H3A 3L6 of financial market
Canada research, including The
Age: 47 Bank Credit Analyst.
Since 1982, he has
helped direct the firm's
investment strategy, and
has been editor of
several U.S. and
international
publications. Mr. Smith
has also developed and
edited new institutional
research products since
1989. Mr. Smith lectures
to investment groups
around the globe.
------------------------------------------------------------------------------------------------------------------------------------
* Aberdeen Asia-Pacific Income Fund, Inc. and Aberdeen Australia Equity Fund,
Inc. have a common Investment Manager and Investment Adviser with the Fund,
and may thus be deemed to be part of the same "Fund Complex" as the Fund.
48 & 49 Aberdeen Global Income Fund, Inc.
MANAGEMENT OF THE FUND (concluded)
INFORMATION REGARDING OFFICERS WHO ARE NOT DIRECTORS
====================================================================================================================================
Term of
Position(s) Office** and
Held with Length of
Name, Address & Age the Fund* Time Served Principal Occupation(s) During Past Five Years
------------------------------------------------------------------------------------------------------------------------------------
Hugh Young President Since 2001 Managing Director of Aberdeen Asset
21 Church Street Management PLC (parent company of the Fund's
#01-01 Capital Square Two Investment Manager and Investment Adviser)
Singapore 049480 (from 1991 to 2002); Managing Director of
Age: 44 Aberdeen Asset Management Asia Limited
(affiliate of the Fund's Investment Manager
and Investment Adviser) (since 1992);
Managing Director of Aberdeen International
Fund Managers Limited (affiliate of the Fund's
Investment Manager and Investment Adviser)
(since 2000); Director of the Investment
Manager and the Investment Adviser (since
2001); Chairman of The Board of Directors of
Aberdeen Australia Equity Fund, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Michael Karagianis Vice President Since 2002 Vice President (since 2002) and Assistant
One Bow Churchyard Vice President (from 2001 to 2002) of the
London EC4M 9HH Fund; Director of Economics and Investment
United Kingdom Strategy of the Fund's Investment Adviser
Age: 37 (since 1999); Director of Portfolio
Investment of County Investment Management
(from 1995 to 1999).
------------------------------------------------------------------------------------------------------------------------------------
Christian Pittard Treasurer and Since 2001 Managing Director of the Fund's Investment
P.O. Box 641 Assistant Secretary Manager (since 2001); Managing Director of
One Seaton Place Aberdeen Private Wealth Management (affiliate
St. Helier, Jersey JE4 8YJ of the Fund's Investment Manager and
Channel Islands Investment Adviser); Chartered Accountant,
Age: 29 KPMG (from 1994 to 1998) and Quorum Trust
Group (1998).
------------------------------------------------------------------------------------------------------------------------------------
Roy M. Randall Secretary Since 1992 Partner of Stikeman, Elliott, Australian
Level 40, Chifley Tower counsel to the Fund.
Two Chifley Square
Sidney, NSW 2000
Australia
Age: 66
------------------------------------------------------------------------------------------------------------------------------------
* The named officer holds the same position(s) with Aberdeen Asia-Pacific
Income Fund, Inc. and Aberdeen Australia Equity Fund, Inc., both of which
may be deemed to be part of the same "Fund Complex" as the Fund.
** Officers hold their positions with the Fund until a successor has been duly
elected and qualified. Officers are generally elected annually at the
meeting of the Board of Directors next following the annual meeting of
stockholders. The officers were last elected on June 19, 2002.
50 & 51 Aberdeen Global Income Fund, Inc.
[THIS PAGE INTENTIONALLY LEFT BLANK]
52 Aberdeen Global Income Fund, Inc.
Directors
Martin J. Gilbert, Chairman
David L. Elsum
Laurence S. Freedman
Neville J. Miles
William J. Potter
Peter D. Sacks
Anton E. Schrafl
E. Duff Scott
John T. Sheehy
Warren C. Smith
Officers
Hugh Young, President
Michael Karagianis, Vice President
Christian Pittard, Treasurer and Assistant Secretary
Roy M. Randall, Secretary
James Blair, Assistant Vice President
Beverley Hendry, Assistant Treasurer
Timothy Sullivan, Assistant Treasurer
Simon Bignell, Assistant Treasurer
Allan S. Mostoff, Assistant Secretary
Margaret A. Bancroft, Assistant Secretary
Sander M. Bieber, Assistant Secretary
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase, from time to time, shares of its
common stock in the open market.
[RECYCLED LOGO] Printed on post-consumer recycled paper
Aberdeen Global Income Fund, Inc. 53
Corporate Information
Investment Manager Aberdeen Asset Managers (C.I.) Limited
P.O. Box 578, 17 Bond Street
St. Helier, Jersey JE45XB
Channel Islands
Investment Advisor Aberdeen Asset Management Limited
Level 6, 201 Kent Street
Sydney, NSW 2000, Australia
Consultant CIBC World Markets, Inc.
BCE Place, Canada Trust Tower
P.O. Box 500
Toronto, Ontario, M5J 2S8
Canada
Administrator Princeton Administrators, L.P.
P.O. Box 9095
Princeton, New Jersey 08543-9095
Custodian State Street Bank and Trust Company
1 Heritage Drive
North Quincy, Massachusetts 02171
Transfer Agent EquiServe Trust Company N.A.
P.O. Box 43011
Providence, RI 02940-3011
Auction Agent Deutsche Bank
280 Park Avenue, 9th Floor
New York, NY 10018
Independent Accountants PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
Legal Counsel Dechert
1775 Eye Street, N.W.
Washington, DC 20006
Stikeman Elliott
Level 40 Chifley Tower
2 Chifley Square
Sydney, NSW 2000, Australia
Investor Relations Aberdeen Asset Management
45 Broadway, 31st Floor
New York, New York 10006
1-800-522-5465 or 1-212-968-8800
InvestorRelations@aberdeen-asset.com
[LOGO]
Aberdeen
ASSET MANAGERS
Aberdeen Asset Managers (C.I.) Limited
The common shares of Aberdeen Global Income Fund, Inc. are traded on the New
York Stock Exchange under the symbol "FCO." Information about the Fund's net
asset value and market price is published weekly in Barron's and in the Monday
edition of The Wall Street Journal.
This report, including the financial information herein, is transmitted to the
shareholders of Aberdeen Global Income Fund, Inc. for their general information
only. It does not have regard to the specific investment objectives, financial
situation and the particular needs of any specific person. Past performance is
no guarantee of future returns.
[GRAPHIC]
Invests primarily in global fixed-income securities