TORONTO, Sept. 29, 2026 /CNW/ -- abrdn Asia-Pacific Income Fund VCC (TSX: FAP) (UEN: T21VC0235H) (the "Company"), a closed-end investment company trading on the Toronto Stock Exchange, today announced that its Board of Directors has approved a 12.5% increase to the Company's monthly distribution. The distribution will rise from CAD 0.02 per share to CAD 0.0225 per share.

The Board approved the increase following a review of, and recommendation from, the Investment Advisor, which considered the Company's current and projected portfolio income, distribution coverage, net asset value, and overall financial position. 

The Company has recently repositioned portions of its portfolio toward investments expected to enhance current income generation and strengthen distribution coverage over time.

The Board and Investment Advisor will continue to monitor the distribution rate on a regular basis in light of portfolio performance, market conditions, distribution coverage, and the Company's overall financial position.

This enhanced distribution rate will take effect beginning with the October distribution. The policy of the Company's Board of Directors is to maintain a stable monthly distribution. The Company will pay its October monthly distribution of CAD 0.0225 per share on October 30, 2026, to all shareholders of record as of October 23, 2026 (ex-dividend date: October 23, 2026).

As a Singapore domiciled company, all distribution payments will be treated as foreign income for Canadian income tax purposes. Shareholders with registered addresses in Canada will receive distributions in Canadian dollars unless they have elected otherwise.

The Company's estimated sources of the current fiscal year to date distributions are as follows:

Important Information

Shareholders should not draw any conclusions about the Company's investment performance from the amount of the Company's current distribution. The amounts and sources of distributions set out above are estimates only and are not being provided for tax reporting purposes. The final determination of the source of all distributions made in 2026 will be made after the 2026 calendar year-end. The actual amounts and sources of the amounts of distributions for tax reporting purposes will depend upon the Company's results during the remainder of the calendar year and are subject to any changes to applicable tax regulations. Information for tax reporting purposes will be provided to the Company's shareholders on a Form T5 in February 2027.

Shares of closed-end funds are listed for trading on national securities exchanges and are bought and sold in the secondary market. The market price of a fund's shares is determined by supply and demand and may be greater than (a "premium") or less than (a "discount") the fund's net asset value (NAV). A fund's investment return and principal value will fluctuate, and investors may receive more or less than their original investment upon the sale of shares. There is no assurance that a fund will achieve its investment objective. Past performance is not indicative of future results.

The trading price of a closed-end fund's shares may be influenced by various factors, including market conditions, investor sentiment, and other external forces, and is not directly controlled by the fund, its Board of Directors, or its investment adviser. As a result, shares may trade at a premium to or discount from NAV at any given time. A premium to NAV may not be sustained, and a discount to NAV may increase or decrease over time. Investors should consider these risks when purchasing or selling closed-end fund shares.

Shareholders whose fund shares trade at a premium to NAV and who participate in the fund's dividend reinvestment plan should be aware that distributions may be reinvested at prices above NAV, which may adversely affect investment results.

About Aberdeen Investments

Aberdeen Investments and Aberdeen Investments Global are the registered marketing names in Canada for abrdn Canada Limited, and abrdn Investments Luxembourg S.A. abrdn Canada Limited ("abrdn") is registered as a Portfolio Manager and Exempt Market Dealer in all provinces and territories of Canada as well as an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador.

Aberdeen Investments is among the world's largest asset managers, with decades of experience overseeing closed-end funds dating back to the 1980s. As of June 30, 2026, the firm had approximately $527 billion in assets under management. Closed-end funds represent a core component of Aberdeen Investments' client franchise in both the U.S. and global markets. Aberdeen and its affiliates currently manage 28 closed-end funds – 17 available in the U.S. and 11 outside the U.S. – totaling $28.3 billion in assets as of June 30, 2026.

For Shareholders Holding Shares Directly with the Fund (Non-Brokerage Accounts):
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For Shareholders Holding Shares Through a Brokerage Account:
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abrdn Asia-Pacific Income Fund VCC | Aberdeen

SOURCE abrdn Asia-Pacific Income Fund VCC