Wealth & Finance International - Fund Awards 2015

www.wealthandfinance-intl.com 13 Borrowing locally is turning more attractive for Chinese high-yield prop- erty developers. This is thanks to a recent loosening of curbs on market access as well as interest savings compared to the offshore option (see chart above). There is also a tax perk: interest paid on onshore bonds is tax-deductible, unlike offshore payments. Evergrande Real Estate was among the companies capitalizing on this funding opportunity. It recently raised five billion yuan by issuing a five-year onshore bond with a coupon of 5.38%; in contrast, it had offered a 12% coupon on a five-year U.S. dollar bond in February, raising U.S. $1 billion. Other developers that are looking to fund onshore include: Longfor Properties, Times Property, Guangzhou R&F, Gemdale and Future Land. We believe if these companies use the proceeds to pare costlier debt, this could translate into stronger balance sheets and credit profiles. IMPORTANT INFORMATION PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obliga- tions earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). International investing entails special risk consid- erations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods. These risks may be enhanced in emerging markets countries. Concentrating investments in the Asia-Pacific region subjects an investment to more volatility and greater risk of loss than geographically diverse investments. In the United States, AAM is the marketing name for the following affili- ated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset Management Ltd and Aberdeen Asset Management Asia Ltd, each of which is wholly owned by Aberdeen Asset Management PLC. “Aberdeen” is a U.S. registered service mark of Aberdeen Asset Management PLC. About the Fund Aberdeen has been investing in Asia for 30 years with on-the-ground presence in the Asia-Pacific region for over two decades, which helps us evaluate investment opportunities from a position of experience. Key Fund Facts Investment Objective: The fund seeks current income through investing in Asian and Australian debt securities. The Fund may achieve incidental capital appreciation. Date of Launch: April, 1986 Total Net Assets: US $1,420.7 million as of August 31, 2015 Ticker: FAX (NYSE MKT) Website: www.aberdeenfax.com

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