Company: FCO
Filing Date: 2025-01-10
Form Type: N-CSR
Source: 0001104659-25-002474
Chunk: 7

Company: ABRDN GLOBAL INCOME FUND, INC.
Filing Date: 2025-01-10
Form: N-CSR
Chunk 7
---
| 3 | The DXY dollar index is a measure of the value of the U.S. dollar against a basket of global currencies. |

{foots1}

| 4 | Emerging market bonds issued in other currencies (such as the U.S. dollar and euro). |

| abrdn Global Income Fund, Inc. | 3 |

Report of the Investment Manager (unaudited) (continued) by yields of over 7%. New issuance activity rebounded after the summer lull to increase aggregate 2024 new issues to $268 billion through October. This was 83% higher than in the corresponding period in 2023, albeit much of this volume was raised to refinance existing debt. Performance Review The abrdn Global Income Fund returned 10.93% on a net asset value 5(NAV) basis for the fiscal year ended October 31, 2024, versus the 15.38% return of its blended benchmark 6for the same period. While the performance of the net asset value includes the impact of leverage 7, the benchmark performance does not. The Fund's unlevered NAV return was 7.96% for the fiscal year ended October 31, 2024, demonstrating that the decision to use leverage had a positive impact on the fund, adding 3.28% to Fund performance over that timeframe. While the impact of leverage was positive due to the positive market performance, the negative mark-to-market impact of interest rate swaps used to hedge the cost of leverage contributed to the Fund’s underperformance against the benchmark. Additionally, the impact of the reinvestment of dividends assumed in the cumulative performance calculation of the NAV (due to the large premium between the Fund’s market price and NAV) was negative. The Fund strategically uses leverage to support its income-generating capacity. The Fund continues to benefit from a positive interest-rate differential between the interest income on the investment portfolio and the cost of the leverage. All sectoral allocations within the Fund delivered double-digit positive returns. However, the principal driver of performance was the overweight 8allocation to EM debt, while the underweight 9exposures to Asian local-currency bonds and Australian bonds also contributed positively. Although the investment portfolio has an underweight exposure to the Australian bond market, the exposure to Australian corporate bonds, especially financial bonds, also contributed positively to relative performance. Within the global high yield allocation, the investment portfolio’s overweight focus on the higher quality segment detracted from relative performance. The use of derivatives to