abrdn Income Credit Strategies Fund Cuts Monthly Distribution by 29%

Key Facts

1abrdn Income Credit Strategies Fund cut its monthly distribution from $0.0775 to $0.055 per share.

2The fund's discount widened from -8.51% to -13.45% on the announcement before narrowing to -11.42%.

The abrdn Income Credit Strategies Fund cut its monthly distribution by 29% to $0.055 per share, down from the previous rate of $0.0775. Seeking Alpha reported that the reduction became effective with the September payment as the fund moves to better align payouts with its net investment income.

The fund cited a need to address a coverage gap, noting that net investment income previously covered only 48% of the distribution. The new rate is expected to improve this coverage to approximately 68%. Following the announcement, the fund's discount widened from -8.51% to -13.45% before narrowing to -11.42%.