Form N-CSRS - Certified Shareholder Report, Semi-Annual
09 7월 2024 - 5:52AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: |
811-21980 |
|
|
Exact name of registrant as specified in charter: |
abrdn Total Dynamic Dividend
Fund |
|
|
Address of principal executive offices: |
1900 Market Street, Suite 200 |
|
Philadelphia, PA 19103 |
|
|
Name and address of agent for service: |
Sharon Ferrari |
|
abrdn Inc. |
|
1900 Market Street, Suite 200 |
|
Philadelphia, PA 19103 |
|
|
Registrant’s telephone number, including area code: |
1-800-522-5465 |
|
|
Date of fiscal year end: |
October 31 |
|
|
Date of reporting period: |
April 30, 2024 |
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to shareholders
pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.
abrdn Global Dynamic Dividend Fund
(AGD)
abrdn Total Dynamic Dividend Fund
(AOD)
Semi-Annual Report
April 30, 2024
Letter to Shareholders (unaudited)
Dear Shareholder,
We present the Semi-Annual
Report, which covers the activities of abrdn Global Dynamic Dividend Fund ("AGD") and abrdn Total Dynamic Dividend Fund ("AOD") (collectively, the "Funds" and each a "Fund"), for the six-month period ended April 30,
2024. The primary investment objective for AGD is to seek high current dividend income, more than 50% of which qualifies for the reduced federal income tax rate, as created by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The primary investment objective for AOD is to seek high current dividend income. The Funds also focus on long-term growth of capital as a secondary investment objective.
Total Investment Return1
For the six-month period
ended April 30, 2024, the total return to shareholders of the Funds based on the net asset value (“NAV”) and market price of the Funds, respectively, is as follows:
| AGD
| AOD
|
NAV2,3
| 14.14%
| 14.40%
|
Market Price2
| 15.53%
| 14.29%
|
MSCI AC World Index (Net DTR)4
| 19.77%
| 19.77%
|
For more information about
AGD or AOD performance, please visit the Funds on the web at www.abrdnagd.com (AGD) and www.abrdnaod.com (AOD), respectively. On the web you can view quarterly commentary on the Funds' performance, monthly fact
sheets, distribution and performance information, and other Fund literature.
NAV, Market Price and Premium(+)/Discount(-)
The below tables represent
comparison from current six-month period end to prior fiscal year end of market price to NAV and associated Premium(+) and Discount(-).
| AGD
|
|
|
| NAV
| Closing
Market
Price
| Premium(+)/
Discount(-)
|
4/30/2024
| $10.84
| $9.31
| -14.11%
|
10/31/2023
| $9.90
| $8.40
| -15.15%
|
During the six-month period
ended April 30, 2024, AGD’s NAV was within a range of $9.98 to $11.26 and AGD’s market price traded within a range of $8.46 to $9.71. During the six-month period ended April 30, 2024, AGD’s shares
traded within a range of a premium(+)/discount(-) of -15.98% to -13.59%.
| AOD
|
|
|
| NAV
| Closing
Market
Price
| Premium(+)/
Discount(-)
|
4/30/2024
| $9.36
| $7.95
| -15.06%
|
10/31/2023
| $8.54
| $7.26
| -14.99%
|
During the six-month period
ended April 30, 2024, AOD's NAV was within a range of $8.61 to $9.74 and AOD's market price traded within a range of $7.31 to $8.29. During the six-month period ended April 30, 2024, the AOD's shares traded within a
range of a premium(+)/discount(-) of -16.39% to -14.16%.
{foots1}
1
| Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be
lower or higher than the performance quoted. NAV return data includes investment management fees, custodial charges and administrative fees (such as Trustee and legal fees) and assumes the reinvestment of all
distributions.
|
{foots1}
2
| Assuming the reinvestment of dividends and distributions.
|
{foots1}
3
| The Funds' total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments.
|
{foots1}
4
| The Morgan Stanley Capital International (MSCI) All Country (AC) World Index Net DailyTotal Return (DTR) is an unmanaged index considered representative of developed and emerging market stock
markets.The index is calculated net of withholding taxes to which the Funds are generally subject. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You
cannot invest directly in an index.
|
2024 Semi-Annual Report
| 1
|
Letter to Shareholders (unaudited) (continued)
Distribution Policy
The Funds' distributions to
common shareholders and the annualized distribution rates based on market price and NAV, respectively, for the six-month period ended April 30, 2024 are shown in the table below:
Fund
| Distribution
per share
| NAV annualized
distribution rate
| Market Price
annualized
distribution rate
|
AGD
| $0.39
| 7.20%
| 8.38%
|
AOD
| $0.35
| 7.37%
| 8.68%
|
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 May 9, 2024 and June 11,
2024, AOD and AGD announced that they will pay on May 31, 2024 and June 28, 2024, respectively, a distribution per share to all shareholders of record as of May 23, 2024 and June 21, 2024, respectively. AGD and AOD
will pay a distribution of $0.065 and $0.0575 per share, respectively.
The Funds' 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, which is a nontaxable return of capital. This policy is
subject to an annual review as well as regular review at the quarterly meetings of each Fund's Board of Trustees (each, a "Board" and collectively, the "Boards") unless market conditions require an earlier
evaluation.
Unclaimed Share Accounts
Please be advised that
abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed
property, and a Fund's shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to
a shareholder is returned to the Funds' transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Funds' transfer agent will
follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares be escheated to the appropriate state. If this happens, you will have to contact the
state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Funds' transfer
agent.
Open Market Repurchase Program
The Boards approved an open
market repurchase and discount management policy (the “Program”). The Program allows the Funds to purchase, in the open market, their outstanding common shares,
with the amount and timing of any repurchase
determined at the discretion of the Funds' investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount
levels and current market conditions. If shares are repurchased, a Fund will report repurchase activity on its website on a monthly basis. For the six-month period ended April 30, 2024, the Funds did not
repurchase any shares through the Program.
On a quarterly basis, the
Boards will receive information on any transactions made pursuant to this policy during the prior quarter and management will post the number of shares repurchased on each respective Fund's website on a monthly
basis. Under the terms of the Program, each Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market during any 12 month period.
Portfolio Holdings Disclosure
The Funds' complete schedule
of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Funds' semi-annual and annual reports to shareholders. Each Fund files its complete schedule of portfolio holdings with
the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. These reports are available on the SEC’s website
at http://www.sec.gov. The Funds make the information available to shareholders upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.
Proxy Voting
A description of the policies
and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12
month period ended June 30 is available by August 31 of the relevant year: (1) upon request without charge by calling Investor Relations toll-free at 1-800-522-5465; and (2) on the SEC’s website at
http://www.sec.gov.
Investor Relations Information
As part of abrdn’s
commitment to shareholders, we invite you to visit the Funds on the web at www.abrdnagd.com (AGD) and www.abrdnaod.com (AOD). On the web you can view monthly fact sheets, quarterly commentary, distribution and
performance information, and other Fund literature.
Enroll in abrdn’s email
services and be among the first to receive the latest closed-end fund news, announcements, videos, and other information. In addition, you can receive electronic versions of
2
| 2024 Semi-Annual Report
|
Letter to Shareholders (unaudited) (concluded)
important Fund documents, including annual
reports, semi-annual reports, prospectuses and proxy statements. Sign up today at https://www.abrdn.com/en-us/cefinvestorcenter/contact-us/preferences
Contact Us:
•
| Visit: https://www.abrdn.com/en-us/cefinvestorcenter
|
•
| Email: Investor.Relations@abrdn.com; or
|
•
| Call: 1-800-522-5465 (toll free in the U.S.).
|
Yours sincerely,
/s/ Christian Pittard
Christian Pittard
President
{foots1}
All amounts are U.S. Dollars
unless otherwise stated.
2024 Semi-Annual Report
| 3
|
abrdn Global Dynamic Dividend Fund
Total Investment Return (unaudited)
The following table summarizes
the average annual Fund performance compared to the Fund’s primary benchmark for the six-month (not annualized), 1-year, 3-year, 5-year and 10-year periods ended April 30, 2024.
AGD
| 6 Months
| 1 Year
| 3 Years
| 5 Years
| 10 Years
|
Net Asset Value (NAV)
| 14.14%
| 7.00%
| 2.02%
| 7.80%
| 7.84%
|
Market Price
| 15.53%
| 6.27%
| 0.44%
| 7.33%
| 7.43%
|
MSCI AC World Index (Net DTR)
| 19.77%
| 17.46%
| 4.27%
| 9.44%
| 8.19%
|
Performance of a $10,000
Investment for AGD (as of April 30, 2024)
This graph shows the change in
value of a hypothetical investment of $10,000 in the Fund for the periods indicated. For comparison, the same investment is shown in the indicated index.
abrdn Investments Limited (the
"Adviser") assumed responsibility for the management of the Fund as investment adviser on May 7, 2018. Performance prior to this date reflects the performance of an unaffiliated investment adviser.
The Adviser entered into a
written contract with the Fund to waive fees or limit expenses. This contract may not be terminated before June 30, 2024. Absent such waivers and/or reimbursements, the Fund's returns would be lower. Additionally,
abrdn Inc. has entered into an agreement with the Fund to limit investor relations services fees, without which performance would be lower if the Fund's investor services fees exceeded such limit during the relevant
period. This agreement aligns with the term of the advisory agreement and may not be terminated prior to the end of the current term of the advisory agreement. See Note 3 in the Notes to Financial Statements.
Returns represent past
performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program
sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment
return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE during the period and assumes reinvestment of dividends and distributions, if any, at market prices
pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV as of the financial reporting period end date of April
30, 2024. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price
and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received
from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent
month-end is available at www.abrdnagd.com or by calling 800-522-5465.
The annualized net operating
expense ratio, excluding fee waivers, based on the six-month period ended April 30, 2024, was 1.28%. The annualized net operating expense ratio net of fee waivers based on the six-month period ended April 30, 2024 was
1.17%. The annualized net operating expense ratio, net of fee waivers and excluding interest expense based on the six-month period ended April 30, 2024, was 1.16%.
4
| 2024 Semi-Annual Report
|
abrdn Global Dynamic Dividend Fund
Portfolio Summary (as a percentage of net assets) (unaudited)
As of April 30, 2024
The following table summarizes
the sector composition of the Fund’s portfolio, in S&P Global Inc.’s Global Industry Classification Standard (“GICS”) Sectors. Industry allocation is shown below for any sector representing
more than 25% of net assets.
Sectors-AGD
|
|
Information Technology
| 20.1%
|
Financials
| 17.8%
|
Health Care
| 11.5%
|
Industrials
| 9.8%
|
Consumer Staples
| 9.5%
|
Consumer Discretionary
| 9.1%
|
Utilities
| 7.2%
|
Energy
| 4.8%
|
Materials
| 4.7%
|
Communication Services
| 4.1%
|
Real Estate
| 2.2%
|
Short-Term Investment
| 0.6%
|
Liabilities in Excess of Other Assets
| (1.4%)
|
| 100.0%
|
The
following table summarizes the composition of the Fund’s portfolio by geographic classification.
Countries-AGD
|
|
United States
| 61.4%
|
France
| 10.0%
|
United Kingdom
| 4.2%
|
Netherlands
| 4.0%
|
Germany
| 3.0%
|
South Korea
| 2.1%
|
Other, less than 2% each
| 16.1%
|
Short-Term Investment
| 0.6%
|
Liabilities in Excess of Other Assets
| (1.4%)
|
| 100.0%
|
The following were the
Fund’s top ten holdings as of April 30, 2024:
Top Ten Holdings-AGD
|
|
Microsoft Corp.
| 3.7%
|
Apple, Inc.
| 3.4%
|
Engie SA
| 3.0%
|
Broadcom, Inc.
| 2.3%
|
Danone SA
| 2.2%
|
Alphabet, Inc.
| 2.2%
|
Eli Lilly & Co.
| 1.6%
|
Target Corp.
| 1.6%
|
Coca-Cola Co.
| 1.6%
|
Taiwan Semiconductor Manufacturing Co. Ltd.
| 1.5%
|
2024 Semi-Annual Report
| 5
|
Portfolio of Investments (unaudited)
As of April 30, 2024
abrdn Global Dynamic Dividend Fund
| Shares or
Principal
Amount
| Value
|
COMMON STOCKS—99.5%
|
|
AUSTRALIA—0.8%
|
Materials—0.8%
|
|
|
|
Rio Tinto PLC, ADR
|
| 32,500
| $ 2,204,475
|
BRAZIL—1.6%
|
Industrials—0.9%
|
|
|
|
CCR SA
|
| 969,000
| 2,300,922
|
Materials—0.7%
|
|
|
|
Vale SA, ADR
|
| 161,500
| 1,965,455
|
Total Brazil
|
| 4,266,377
|
CANADA—1.4%
|
Energy—1.4%
|
|
|
|
Enbridge, Inc.(a)
|
| 107,300
| 3,813,442
|
CHINA—1.7%
|
Communication Services—0.9%
|
|
|
|
Tencent Holdings Ltd.
|
| 56,700
| 2,488,177
|
Financials—0.8%
|
|
|
|
Ping An Insurance Group Co. of China Ltd., H Shares
|
| 435,700
| 1,974,627
|
Total China
|
| 4,462,804
|
DENMARK—1.1%
|
Financials—1.1%
|
|
|
|
Tryg AS
|
| 156,000
| 3,087,588
|
FRANCE—10.0%
|
Consumer Discretionary—1.0%
|
|
|
|
LVMH Moet Hennessy Louis Vuitton SE
|
| 3,200
| 2,628,595
|
Consumer Staples—3.1%
|
|
|
|
Danone SA
|
| 95,700
| 5,989,608
|
Pernod Ricard SA
|
| 15,600
| 2,359,377
|
|
|
| 8,348,985
|
Energy—1.4%
|
|
|
|
TotalEnergies SE, ADR(a)
|
| 50,900
| 3,688,723
|
Financials—0.5%
|
|
|
|
AXA SA
|
| 37,350
| 1,290,502
|
Industrials—1.0%
|
|
|
|
Bouygues SA
|
| 46,400
| 1,710,085
|
Teleperformance SE(b)
|
| 11,800
| 1,068,900
|
|
|
| 2,778,985
|
Utilities—3.0%
|
|
|
|
Engie SA(b)
|
| 475,500
| 8,254,970
|
Total France
|
| 26,990,760
|
GERMANY—3.0%
|
Consumer Discretionary—1.0%
|
|
|
|
Mercedes-Benz Group AG
|
| 34,200
| 2,586,918
|
Financials—1.0%
|
|
|
|
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen
|
| 6,300
| 2,770,794
|
Utilities—1.0%
|
|
|
|
RWE AG
|
| 81,900
| 2,853,030
|
Total Germany
|
| 8,210,742
|
| Shares or
Principal
Amount
| Value
|
|
|
HONG KONG—0.8%
|
Financials—0.8%
|
|
|
|
Hong Kong Exchanges & Clearing Ltd.
|
| 70,600
| $ 2,243,273
|
ISRAEL—0.8%
|
Energy—0.8%
|
|
|
|
Energean PLC
|
| 154,400
| 2,129,953
|
JAPAN—1.8%
|
Financials—1.2%
|
|
|
|
Mitsubishi UFJ Financial Group, Inc.
|
| 319,000
| 3,177,671
|
Real Estate—0.6%
|
|
|
|
GLP J-Reit
|
| 2,000
| 1,626,624
|
Total Japan
|
| 4,804,295
|
NETHERLANDS—4.0%
|
Financials—1.2%
|
|
|
|
ING Groep NV, Series N
|
| 208,000
| 3,288,535
|
Information Technology—2.8%
|
|
|
|
ASML Holding NV
|
| 4,600
| 4,006,659
|
BE Semiconductor Industries NV
|
| 26,100
| 3,462,792
|
|
|
| 7,469,451
|
Total Netherlands
|
| 10,757,986
|
NORWAY—1.7%
|
Communication Services—1.0%
|
|
|
|
Telenor ASA
|
| 224,700
| 2,587,130
|
Financials—0.7%
|
|
|
|
DNB Bank ASA
|
| 109,425
| 1,907,184
|
Total Norway
|
| 4,494,314
|
SINGAPORE—1.3%
|
Financials—1.3%
|
|
|
|
Oversea-Chinese Banking Corp. Ltd.
|
| 342,000
| 3,550,495
|
SOUTH KOREA—0.8%
|
Materials—0.8%
|
|
|
|
LG Chem Ltd.
|
| 7,100
| 2,040,172
|
SPAIN—0.9%
|
Consumer Discretionary—0.9%
|
|
|
|
Amadeus IT Group SA
|
| 36,660
| 2,326,954
|
SWEDEN—0.7%
|
Industrials—0.7%
|
|
|
|
Atlas Copco AB, A Shares
|
| 105,900
| 1,854,953
|
TAIWAN—1.5%
|
Information Technology—1.5%
|
|
|
|
Taiwan Semiconductor Manufacturing Co. Ltd.
|
| 170,200
| 4,075,227
|
UNITED KINGDOM—4.2%
|
Consumer Discretionary—1.0%
|
|
|
|
Taylor Wimpey PLC
|
| 1,585,300
| 2,597,708
|
Financials—1.0%
|
|
|
|
London Stock Exchange Group PLC
|
| 25,700
| 2,833,170
|
Health Care—1.4%
|
|
|
|
AstraZeneca PLC, ADR(a)
|
| 49,900
| 3,786,412
|
Industrials—0.8%
|
|
|
|
Melrose Industries PLC
|
| 260,200
| 2,044,217
|
Total United Kingdom
|
| 11,261,507
|
See accompanying Notes to
Financial Statements.
6
| 2024 Semi-Annual Report
|
Portfolio of Investments (unaudited) (continued)
As of April 30, 2024
abrdn Global Dynamic Dividend Fund
| Shares or
Principal
Amount
| Value
|
COMMON STOCKS (continued)
|
|
UNITED STATES—61.4%
|
Communication Services—2.2%
|
|
|
|
Alphabet, Inc., Class C(a)(b)
|
| 36,000
| $ 5,927,040
|
Consumer Discretionary—5.2%
|
|
|
|
Aptiv PLC(a)(b)
|
| 24,400
| 1,732,400
|
Genuine Parts Co.(a)
|
| 22,500
| 3,537,225
|
Las Vegas Sands Corp.
|
| 35,400
| 1,570,344
|
Lowe's Cos., Inc.(a)
|
| 16,100
| 3,670,639
|
TJX Cos., Inc.(a)
|
| 37,400
| 3,518,966
|
|
|
| 14,029,574
|
Consumer Staples—6.4%
|
|
|
|
Coca-Cola Co.(a)
|
| 67,800
| 4,188,006
|
Keurig Dr Pepper, Inc.
|
| 81,100
| 2,733,070
|
Mondelez International, Inc., Class A(a)
|
| 43,000
| 3,093,420
|
Nestle SA
|
| 28,810
| 2,892,528
|
Target Corp.(a)
|
| 26,500
| 4,265,970
|
|
|
| 17,172,994
|
Energy—1.2%
|
|
|
|
Williams Cos., Inc.(a)
|
| 82,285
| 3,156,453
|
Financials—8.2%
|
|
|
|
Bank of America Corp.(a)
|
| 80,700
| 2,986,707
|
Blackstone, Inc.
|
| 25,154
| 2,933,208
|
CME Group, Inc.(a)
|
| 13,300
| 2,788,212
|
Fidelity National Information Services, Inc.
|
| 43,339
| 2,943,585
|
Goldman Sachs Group, Inc.
|
| 9,500
| 4,053,745
|
JPMorgan Chase & Co.
|
| 20,900
| 4,007,366
|
MetLife, Inc.
|
| 31,700
| 2,253,236
|
|
|
| 21,966,059
|
Health Care—10.1%
|
|
|
|
AbbVie, Inc.(a)
|
| 24,212
| 3,937,840
|
Bristol-Myers Squibb Co.(a)
|
| 42,408
| 1,863,408
|
CVS Health Corp.
|
| 37,100
| 2,512,041
|
Eli Lilly & Co.(a)
|
| 5,700
| 4,452,270
|
Medtronic PLC(a)
|
| 29,000
| 2,326,960
|
Merck & Co., Inc.
|
| 29,100
| 3,760,302
|
Roche Holding AG
|
| 11,010
| 2,638,152
|
Sanofi SA
|
| 30,900
| 3,052,705
|
UnitedHealth Group, Inc.(a)
|
| 5,592
| 2,704,850
|
|
|
| 27,248,528
|
Industrials—6.4%
|
|
|
|
FedEx Corp.(a)
|
| 13,500
| 3,534,030
|
Ferrovial SE
|
| 76,000
| 2,733,368
|
Norfolk Southern Corp.
|
| 11,200
| 2,579,584
|
Schneider Electric SE
|
| 15,800
| 3,602,611
|
Stanley Black & Decker, Inc.
|
| 22,800
| 2,083,920
|
Waste Management, Inc.
|
| 13,400
| 2,787,468
|
|
|
| 17,320,981
|
Information Technology—14.5%
|
|
|
|
Accenture PLC, Class A
|
| 7,400
| 2,226,734
|
Amdocs Ltd.
|
| 36,500
| 3,065,635
|
Analog Devices, Inc.
|
| 18,100
| 3,631,041
|
Apple, Inc.(a)
|
| 54,000
| 9,197,820
|
Broadcom, Inc.(a)
|
| 4,726
| 6,145,076
|
Cisco Systems, Inc.
|
| 63,600
| 2,987,928
|
| Shares or
Principal
Amount
| Value
|
|
|
|
Microsoft Corp.(a)
|
| 25,626
| $ 9,976,971
|
Oracle Corp.
|
| 16,800
| 1,911,000
|
|
|
| 39,142,205
|
Materials—2.4%
|
|
|
|
Linde PLC
|
| 8,300
| 3,659,995
|
Newmont Corp.
|
| 67,800
| 2,755,392
|
|
|
| 6,415,387
|
Real Estate—1.6%
|
|
|
|
American Tower Corp., REIT
|
| 11,500
| 1,972,940
|
Gaming & Leisure Properties, Inc., REIT(a)
|
| 53,991
| 2,307,035
|
|
|
| 4,279,975
|
Utilities—3.2%
|
|
|
|
CMS Energy Corp.
|
| 43,800
| 2,654,718
|
FirstEnergy Corp.
|
| 59,600
| 2,285,064
|
NextEra Energy Partners LP
|
| 46,300
| 1,313,068
|
NextEra Energy, Inc.(a)
|
| 37,100
| 2,484,587
|
|
|
| 8,737,437
|
Total United States
|
| 165,396,633
|
Total Common Stocks
|
| 267,971,950
|
CORPORATE BONDS—0.0%
|
|
UNITED STATES—0.0%
|
Diversified Financial Services—0.0%
|
|
|
|
Fixed Income Pass-Through Trust, Class B, Series 2007 -C 0.00%, 01/15/2087(c)(d)
| $
| 500,000
| 500
|
Total Corporate Bonds
|
| 500
|
PREFERRED STOCKS—1.3%
|
|
SOUTH KOREA—1.3%
|
Information Technology—1.3%
|
|
|
|
Samsung Electronics Co. Ltd.
|
| 75,400
| 3,520,509
|
Total Preferred Stocks
|
| 3,520,509
|
SHORT-TERM INVESTMENT—0.6%
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.25%(e)
|
| 1,616,230
| 1,616,230
|
Total Short-Term Investment
|
| 1,616,230
|
Total Investments
(Cost $232,818,458)(f)—101.4%
| 273,109,189
|
Liabilities in Excess of Other Assets—(1.4%)
| (3,670,940)
|
Net Assets—100.0%
| $269,438,249
|
(a)
| All or a portion of the security has been designated as collateral for the line of credit.
|
(b)
| Non-income producing security.
|
(c)
| Denotes a security issued under Regulation S or Rule 144A.
|
(d)
| Variable or Floating Rate security. Rate disclosed is as of April 30, 2024.
|
(e)
| Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of April 30, 2024.
|
(f)
| See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.
|
ADR
| American Depositary Receipt
|
EUR
| Euro Currency
|
PLC
| Public Limited Company
|
REIT
| Real Estate Investment Trust
|
USD
| U.S. Dollar
|
See Accompanying Notes to Financial
Statements.
2024 Semi-Annual Report
| 7
|
Portfolio of Investments (unaudited) (concluded)
As of April 30, 2024
abrdn Global Dynamic Dividend Fund
At April 30, 2024, the Fund held the following forward foreign currency contracts:
|
Sale Contracts
Settlement Date
| Counterparty
| Currency
Purchased
| Amount
Purchased
| Currency
Sold
| Amount
Sold
| Fair Value
| Unrealized
Appreciation/
(Depreciation)
|
United States Dollar/Euro
|
|
|
|
|
|
07/12/2024
| Citibank N.A.
| USD
| 21,155,099
| EUR
| 19,400,000
| $20,765,530
| $389,569
|
See Accompanying Notes to Financial
Statements.
8
| 2024 Semi-Annual Report
|
abrdn Total Dynamic Dividend Fund
Total Investment Return (unaudited)
The following table summarizes
the average annual Fund performance compared to the Fund’s primary benchmark for the six-month (not annualized), 1-year, 3-year, 5-year and 10-year periods ended April 30, 2024.
AOD
| 6 Months
| 1 Year
| 3 Years
| 5 Years
| 10 Years
|
Net Asset Value (NAV)
| 14.40%
| 6.86%
| 2.81%
| 8.01%
| 7.85%
|
Market Price
| 14.29%
| 4.93%
| 1.06%
| 6.99%
| 7.78%
|
MSCI AC World Index (Net DTR)
| 19.77%
| 17.46%
| 4.27%
| 9.44%
| 8.19%
|
Performance of a $10,000
Investment for AOD (as of April 30, 2024)
This graph shows the change in
value of a hypothetical investment of $10,000 in the Fund for the periods indicated. For comparison, the same investment is shown in the indicated index.
abrdn Investments Limited (the
"Adviser") assumed responsibility for the management of the Fund as investment adviser on May 7, 2018. Performance prior to this date reflects the performance of an unaffiliated investment adviser.
The Adviser entered into a
written contract with the Fund to waive fees or limit expenses. This contract may not be terminated before June 30, 2024. Absent such waivers and/or reimbursements, the Fund's returns would be lower. Additionally,
abrdn Inc. has entered into an agreement with the Fund to limit investor relations services fees, without which performance would be lower if the Fund's investor services fees exceeded such limit during the relevant
period. This agreement aligns with the term of the advisory agreement and may not be terminated prior to the end of the current term of the advisory agreement. See Note 3 in the Notes to Financial Statements.
Returns represent past
performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program
sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment
return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE during the period and assumes reinvestment of dividends and distributions, if any, at market prices
pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV as of the financial reporting period end date of April
30, 2024. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price
and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received
from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent
month-end is available at www.abrdnaod.com or by calling 800-522-5465.
The annualized net operating
expense ratio, excluding fee waivers, based on the six-month period ended April 30, 2024, was 1.44%. The annualized net operating expense ratio net of fee waivers based on the six-month period ended April 30, 2024 was
1.34%. The annualized net operating expense ratio, net of fee waivers and excluding interest expense based on the six-month period ended April 30, 2024, was 1.14%.
2024 Semi-Annual Report
| 9
|
abrdn Total Dynamic Dividend Fund
Portfolio Summary (as a percentage of net assets) (unaudited)
As of April 30, 2024
The following table summarizes
the sector composition of the Fund’s portfolio, in S&P Global Inc.’s Global Industry Classification Standard (“GICS”) Sectors. Industry allocation is shown below for any sector representing
more than 25% of net assets.
Sectors-AOD
|
|
Information Technology
| 20.5%
|
Financials
| 18.3%
|
Health Care
| 11.9%
|
Industrials
| 10.1%
|
Consumer Staples
| 9.7%
|
Consumer Discretionary
| 9.5%
|
Utilities
| 7.7%
|
Communication Services
| 5.2%
|
Materials
| 4.7%
|
Energy
| 4.2%
|
Real Estate
| 2.3%
|
Short-Term Investment
| 0.6%
|
Liabilities in Excess of Other Assets
| (4.7%)
|
| 100.0%
|
The
following table summarizes the composition of the Fund’s portfolio by geographic classification.
Countries-AOD
|
|
United States
| 62.7%
|
France
| 10.8%
|
United Kingdom
| 4.3%
|
Netherlands
| 4.1%
|
Germany
| 3.2%
|
South Korea
| 2.2%
|
Other, less than 2% each
| 16.8%
|
Short-Term Investment
| 0.6%
|
Liabilities in Excess of Other Assets
| (4.7%)
|
| 100.0%
|
The following were the
Fund’s top ten holdings as of April 30, 2024:
Top Ten Holdings-AOD
|
|
Microsoft Corp.
| 3.6%
|
Apple, Inc.
| 3.4%
|
Engie SA
| 3.2%
|
Broadcom, Inc.
| 2.3%
|
Danone SA
| 2.3%
|
Alphabet, Inc.
| 2.3%
|
Eli Lilly & Co.
| 1.7%
|
Taiwan Semiconductor Manufacturing Co. Ltd.
| 1.7%
|
Coca-Cola Co.
| 1.6%
|
Target Corp.
| 1.6%
|
10
| 2024 Semi-Annual Report
|
Portfolio of Investments (unaudited)
As of April 30, 2024
abrdn Total Dynamic Dividend Fund
| Shares
| Value
|
COMMON STOCKS—102.7%
|
|
AUSTRALIA—0.8%
|
Materials—0.8%
|
|
|
|
Rio Tinto PLC, ADR
|
| 119,900
| $ 8,132,817
|
BRAZIL—1.6%
|
Industrials—0.9%
|
|
|
|
CCR SA
|
| 3,650,100
| 8,667,283
|
Materials—0.7%
|
|
|
|
Vale SA, ADR
|
| 608,400
| 7,404,228
|
Total Brazil
|
| 16,071,511
|
CANADA—1.5%
|
Energy—1.5%
|
|
|
|
Enbridge, Inc.(a)
|
| 414,500
| 14,731,330
|
CHINA—1.7%
|
Communication Services—1.0%
|
|
|
|
Tencent Holdings Ltd.
|
| 220,200
| 9,663,077
|
Financials—0.7%
|
|
|
|
Ping An Insurance Group Co. of China Ltd., H Shares
|
| 1,652,900
| 7,491,074
|
Total China
|
| 17,154,151
|
DENMARK—1.2%
|
Financials—1.2%
|
|
|
|
Tryg AS
|
| 584,900
| 11,576,474
|
FRANCE—10.8%
|
Consumer Discretionary—1.1%
|
|
|
|
LVMH Moet Hennessy Louis Vuitton SE
|
| 12,900
| 10,596,525
|
Consumer Staples—3.2%
|
|
|
|
Danone SA
|
| 363,300
| 22,737,979
|
Pernod Ricard SA
|
| 62,000
| 9,377,011
|
|
|
| 32,114,990
|
Energy—1.5%
|
|
|
|
TotalEnergies SE, ADR(a)
|
| 204,200
| 14,798,374
|
Financials—0.7%
|
|
|
|
AXA SA
|
| 212,550
| 7,343,937
|
Industrials—1.1%
|
|
|
|
Bouygues SA
|
| 176,133
| 6,491,433
|
Teleperformance SE(b)
|
| 44,600
| 4,040,079
|
|
|
| 10,531,512
|
Utilities—3.2%
|
|
|
|
Engie SA(b)
|
| 1,805,300
| 31,341,108
|
Total France
|
| 106,726,446
|
GERMANY—3.2%
|
Consumer Discretionary—1.0%
|
|
|
|
Mercedes-Benz Group AG
|
| 126,400
| 9,561,008
|
Financials—1.1%
|
|
|
|
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen
|
| 24,000
| 10,555,406
|
Utilities—1.1%
|
|
|
|
RWE AG
|
| 323,500
| 11,269,295
|
Total Germany
|
| 31,385,709
|
HONG KONG—0.9%
|
Financials—0.9%
|
|
|
|
Hong Kong Exchanges & Clearing Ltd.
|
| 266,500
| 8,467,880
|
| Shares
| Value
|
|
|
JAPAN—1.8%
|
Financials—1.2%
|
|
|
|
Mitsubishi UFJ Financial Group, Inc.
|
| 1,169,700
| $ 11,651,792
|
Real Estate—0.6%
|
|
|
|
GLP J-Reit
|
| 7,600
| 6,181,172
|
Total Japan
|
| 17,832,964
|
NETHERLANDS—4.1%
|
Financials—1.3%
|
|
|
|
ING Groep NV, Series N
|
| 789,100
| 12,475,880
|
Information Technology—2.8%
|
|
|
|
ASML Holding NV
|
| 16,800
| 14,633,014
|
BE Semiconductor Industries NV
|
| 102,500
| 13,599,087
|
|
|
| 28,232,101
|
Total Netherlands
|
| 40,707,981
|
NORWAY—1.8%
|
Communication Services—1.1%
|
|
|
|
Telenor ASA
|
| 890,530
| 10,253,301
|
Financials—0.7%
|
|
|
|
DNB Bank ASA
|
| 415,125
| 7,235,273
|
Total Norway
|
| 17,488,574
|
SINGAPORE—1.4%
|
Financials—1.4%
|
|
|
|
Oversea-Chinese Banking Corp. Ltd.
|
| 1,298,471
| 13,480,160
|
SOUTH KOREA—0.8%
|
Materials—0.8%
|
|
|
|
LG Chem Ltd.
|
| 27,100
| 7,787,136
|
SPAIN—1.7%
|
Communication Services—0.8%
|
|
|
|
Cellnex Telecom SA(b)(c)
|
| 241,800
| 7,992,626
|
Consumer Discretionary—0.9%
|
|
|
|
Amadeus IT Group SA
|
| 138,600
| 8,797,486
|
Total Spain
|
| 16,790,112
|
SWEDEN—0.7%
|
Industrials—0.7%
|
|
|
|
Atlas Copco AB, A Shares
|
| 404,400
| 7,083,504
|
TAIWAN—1.7%
|
Information Technology—1.7%
|
|
|
|
Taiwan Semiconductor Manufacturing Co. Ltd.
|
| 676,600
| 16,200,344
|
UNITED KINGDOM—4.3%
|
Consumer Discretionary—1.0%
|
|
|
|
Taylor Wimpey PLC
|
| 5,888,400
| 9,648,865
|
Financials—1.1%
|
|
|
|
London Stock Exchange Group PLC
|
| 98,400
| 10,847,624
|
Health Care—1.5%
|
|
|
|
AstraZeneca PLC, ADR
|
| 192,300
| 14,591,724
|
Industrials—0.7%
|
|
|
|
Melrose Industries PLC
|
| 968,800
| 7,611,212
|
Total United Kingdom
|
| 42,699,425
|
UNITED STATES—62.7%
|
Communication Services—2.3%
|
|
|
|
Alphabet, Inc., Class C(a)(b)
|
| 136,200
| 22,423,968
|
Consumer Discretionary—5.5%
|
|
|
|
Aptiv PLC(a)(b)
|
| 91,100
| 6,468,100
|
See accompanying Notes to
Financial Statements.
2024 Semi-Annual Report
| 11
|
Portfolio of Investments (unaudited) (continued)
As of April 30, 2024
abrdn Total Dynamic Dividend Fund
| Shares
| Value
|
COMMON STOCKS (continued)
|
|
UNITED STATES (continued)
|
Genuine Parts Co.(a)
|
| 86,200
| $ 13,551,502
|
Las Vegas Sands Corp.
|
| 138,600
| 6,148,296
|
Lowe's Cos., Inc.(a)
|
| 63,100
| 14,386,169
|
TJX Cos., Inc.(a)
|
| 143,600
| 13,511,324
|
|
|
| 54,065,391
|
Consumer Staples—6.5%
|
|
|
|
Coca-Cola Co.
|
| 260,700
| 16,103,439
|
Keurig Dr Pepper, Inc.
|
| 303,500
| 10,227,950
|
Mondelez International, Inc., Class A(a)
|
| 154,200
| 11,093,148
|
Nestle SA
|
| 104,800
| 10,521,937
|
Target Corp.(a)
|
| 99,800
| 16,065,804
|
|
|
| 64,012,278
|
Energy—1.2%
|
|
|
|
Williams Cos., Inc.
|
| 304,000
| 11,661,440
|
Financials—8.0%
|
|
|
|
Bank of America Corp.(a)
|
| 306,700
| 11,350,967
|
Blackstone, Inc.
|
| 97,800
| 11,404,458
|
CME Group, Inc.
|
| 50,700
| 10,628,748
|
Fidelity National Information Services, Inc.
|
| 148,900
| 10,113,288
|
Goldman Sachs Group, Inc.
|
| 34,800
| 14,849,508
|
JPMorgan Chase & Co.
|
| 77,300
| 14,821,502
|
MetLife, Inc.
|
| 81,000
| 5,757,480
|
|
|
| 78,925,951
|
Health Care—10.4%
|
|
|
|
AbbVie, Inc.(a)
|
| 88,200
| 14,344,848
|
Bristol-Myers Squibb Co.(a)
|
| 162,900
| 7,157,826
|
CVS Health Corp.
|
| 139,300
| 9,432,003
|
Eli Lilly & Co.
|
| 21,600
| 16,871,760
|
Medtronic PLC(a)
|
| 118,900
| 9,540,536
|
Merck & Co., Inc.
|
| 110,900
| 14,330,498
|
Roche Holding AG
|
| 41,400
| 9,920,027
|
Sanofi SA
|
| 118,593
| 11,716,165
|
UnitedHealth Group, Inc.(a)
|
| 20,300
| 9,819,110
|
|
|
| 103,132,773
|
Industrials—6.7%
|
|
|
|
FedEx Corp.(a)
|
| 51,800
| 13,560,204
|
Ferrovial SE
|
| 292,000
| 10,501,886
|
Norfolk Southern Corp.(a)
|
| 39,400
| 9,074,608
|
Schneider Electric SE
|
| 62,800
| 14,319,240
|
Stanley Black & Decker, Inc.
|
| 87,400
| 7,988,360
|
Waste Management, Inc.
|
| 50,300
| 10,463,406
|
|
|
| 65,907,704
|
Information Technology—14.6%
|
|
|
|
Accenture PLC, Class A
|
| 27,500
| 8,275,025
|
Amdocs Ltd.
|
| 142,100
| 11,934,979
|
Analog Devices, Inc.
|
| 68,600
| 13,761,846
|
Apple, Inc.(a)
|
| 196,600
| 33,486,878
|
| Shares
| Value
|
|
|
|
Broadcom, Inc.(a)
|
| 17,500
| $ 22,754,725
|
Cisco Systems, Inc.(a)
|
| 245,300
| 11,524,194
|
Microsoft Corp.(a)
|
| 90,900
| 35,390,097
|
Oracle Corp.
|
| 63,200
| 7,189,000
|
|
|
| 144,316,744
|
Materials—2.4%
|
|
|
|
Linde PLC
|
| 30,800
| 13,581,667
|
Newmont Corp.
|
| 262,300
| 10,659,872
|
|
|
| 24,241,539
|
Real Estate—1.7%
|
|
|
|
American Tower Corp., REIT
|
| 46,400
| 7,960,384
|
Gaming & Leisure Properties, Inc., REIT
|
| 206,800
| 8,836,564
|
|
|
| 16,796,948
|
Utilities—3.4%
|
|
|
|
CMS Energy Corp.(a)
|
| 156,000
| 9,455,160
|
FirstEnergy Corp.(a)
|
| 238,000
| 9,124,920
|
NextEra Energy Partners LP
|
| 177,800
| 5,042,408
|
NextEra Energy, Inc.(a)
|
| 146,000
| 9,777,620
|
|
|
| 33,400,108
|
Total United States
|
| 618,884,844
|
Total Common Stocks
|
| 1,013,201,362
|
PREFERRED STOCKS—1.4%
|
|
SOUTH KOREA—1.4%
|
Information Technology—1.4%
|
|
|
|
Samsung Electronics Co. Ltd.
|
| 288,800
| 13,484,389
|
Total Preferred Stocks
|
| 13,484,389
|
SHORT-TERM INVESTMENT—0.6%
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.25%(d)
|
| 6,062,282
| 6,062,282
|
Total Short-Term Investment
|
| 6,062,282
|
Total Investments
(Cost $807,106,433)(e)—104.7%
| 1,032,748,033
|
Liabilities in Excess of Other Assets—(4.7%)
| (46,235,092)
|
Net Assets—100.0%
| $986,512,941
|
(a)
| All or a portion of the security has been designated as collateral for the line of credit.
|
(b)
| Non-income producing security.
|
(c)
| Denotes a security issued under Regulation S or Rule 144A.
|
(d)
| Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of April 30, 2024.
|
(e)
| See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities.
|
ADR
| American Depositary Receipt
|
PLC
| Public Limited Company
|
REIT
| Real Estate Investment Trust
|
See Accompanying Notes to Financial
Statements.
12
| 2024 Semi-Annual Report
|
Portfolio of Investments (unaudited) (concluded)
As of April 30, 2024
abrdn Total Dynamic Dividend Fund
At April 30, 2024, the Fund held the following forward foreign currency contracts:
|
Sale Contracts
Settlement Date
| Counterparty
| Currency
Purchased
| Amount
Purchased
| Currency
Sold
| Amount
Sold
| Fair Value
| Unrealized
Appreciation/
(Depreciation)
|
United States Dollar/Euro
|
|
|
|
|
|
07/12/2024
| Citibank N.A.
| USD
| 80,149,472
| EUR
| 73,500,000
| $78,673,529
| $1,475,943
|
See Accompanying Notes to Financial
Statements.
2024 Semi-Annual Report
| 13
|
Statement of Assets and Liabilities (unaudited)
April 30, 2024
Assets
| abrdn
Global Dynamic
Dividend Fund
| abrdn
Total Dynamic
Dividend Fund
|
Investments, at value
| $ 271,492,959
| $ 1,026,685,751
|
Short-term investments, at value
| 1,616,230
| 6,062,282
|
Foreign currency, at value
| 966,437
| 4,114,618
|
Receivable for investments sold
| 7,692,658
| 31,681,896
|
Interest and dividends receivable
| 2,234,225
| 8,412,161
|
Unrealized appreciation on forward foreign currency exchange contracts
| 389,569
| 1,475,943
|
Tax reclaim receivable
| 1,281,187
| 4,905,047
|
Prepaid expenses
| 13,196
| 53,301
|
Other assets
| 42,701
| —
|
Total assets
| 285,729,162
| 1,083,390,999
|
Liabilities
|
|
|
Payable for investments purchased
| 7,933,393
| 32,303,367
|
Line of credit payable (Note 7)
| 7,908,278
| 63,133,712
|
Investment management fees payable (Note 3)
| 199,805
| 757,449
|
Investor relations fees payable (Note 3)
| 30,753
| 81,176
|
Administration fees payable (Note 3)
| 17,872
| 65,475
|
Interest payable on line of credit
| 12,819
| 198,248
|
Due to custodian
| 938
| 84,394
|
Other accrued expenses
| 187,055
| 254,237
|
Total liabilities
| 16,290,913
| 96,878,058
|
|
Net Assets
| $269,438,249
| $986,512,941
|
Cost:
|
|
|
Investments
| 231,202,228
| 801,044,151
|
Short-Term Investments
| 1,616,230
| 6,062,282
|
Foreign currency, at cost
| 969,362
| 4,121,236
|
Composition of Net Assets
|
|
|
Paid-in capital in excess of par
| 270,690,204
| 990,459,099
|
Distributable accumulated loss
| (1,251,955)
| (3,946,158)
|
Net Assets
| $269,438,249
| $986,512,941
|
Net asset value per share
| $10.84
| $9.36
|
Shares issued and outstanding
| 24,865,081
| 105,430,999
|
Amounts listed as
“–” are $0 or round to $0.
See Accompanying Notes to Financial
Statements.
14
| 2024 Semi-Annual Report
|
Statement of Operations (unaudited)
For the Six-Months Ended April 30, 2024
| abrdn
Global Dynamic
Dividend Fund
| abrdn
Total Dynamic
Dividend Fund
|
Net Investment Income
|
|
|
Investment Income:
|
|
|
Dividends
| $ 9,891,170
| $ 36,959,776
|
Interest and other income
| 44,570
| —
|
Foreign taxes withheld
| (860,925)
| (3,240,387)
|
Total investment income
| 9,074,815
| 33,719,389
|
Expenses:
|
|
|
Investment management fee (Note 3)
| 1,344,369
| 5,081,964
|
Administration fee (Note 3)
| 107,549
| 394,530
|
Reports to shareholders and proxy solicitation
| 43,557
| 87,654
|
Investor relations fees and expenses (Note 3)
| 38,153
| 123,054
|
Custodian’s fees and expenses
| 37,877
| 71,479
|
Trustees' fees and expenses
| 34,028
| 64,530
|
Legal fees and expenses
| 28,350
| 109,716
|
Independent auditors’ fees and tax expenses
| 22,929
| 38,593
|
Transfer agent’s fees and expenses
| 8,776
| 8,523
|
Miscellaneous
| 37,013
| 106,150
|
Total operating expenses, excluding interest expense
| 1,702,601
| 6,086,193
|
Interest expense (Note 7)
| 16,858
| 993,219
|
Total operating expenses before reimbursed/waived expenses
| 1,719,459
| 7,079,412
|
Expenses waived (Note 3)
| (143,132)
| (464,137)
|
Net expenses
| 1,576,327
| 6,615,275
|
|
Net Investment Income
| 7,498,488
| 27,104,114
|
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions:
|
|
|
Net realized gain/(loss) from:
|
|
|
Investments (Note 2h)
| (6,274,058)
| (16,829,772)
|
Forward foreign currency exchange contracts
| (335,795)
| (1,271,193)
|
Foreign currency transactions
| (6,502)
| (16,046)
|
| (6,616,355)
| (18,117,011)
|
Net change in unrealized appreciation/(depreciation) on:
|
|
|
Investments (Note 2h)
| 31,713,449
| 112,377,902
|
Forward foreign currency exchange contracts
| 326,752
| 1,236,467
|
Foreign currency translation
| (5,071)
| 20,739
|
| 32,035,130
| 113,635,108
|
Net realized and unrealized gain from investments, forward foreign currency exchange
contracts and foreign currencies
| 25,418,775
| 95,518,097
|
Change in Net Assets Resulting from Operations
| $32,917,263
| $122,622,211
|
Amounts listed as
“–” are $0 or round to $0.
See Accompanying Notes to Financial
Statements.
2024 Semi-Annual Report
| 15
|
Statements of Changes in Net Assets
| abrdn Global Dynamic Dividend Fund
| abrdn Total Dynamic Dividend Fund
|
| For the
Six-Month
Period Ended
April 30, 2024
(unaudited)
| For the
Year Ended
October 31, 2023
| For the
Six-Month
Period Ended
April 30, 2024
(unaudited)
| For the
Year Ended
October 31, 2023
|
Increase/(Decrease) in Net Assets:
|
|
|
|
|
Operations:
|
|
|
|
|
Net investment income
| $7,498,488
| $15,320,734
| $27,104,114
| $61,514,810
|
Net realized gain from investments, forward foreign currency exchange contracts and foreign currency transactions
| (6,616,355)
| (7,510,274)
| (18,117,011)
| (28,051,167)
|
Net change in unrealized appreciation on investments, forward foreign currency
exchange contracts and foreign currency translation
| 32,035,130
| (855,823)
| 113,635,108
| 31,509,278
|
Net increase in net assets resulting from operations
| 32,917,263
| 6,954,637
| 122,622,211
| 64,972,921
|
Distributions to Shareholders From:
|
|
|
|
|
Distributable earnings
| (9,697,382)
| (15,666,124)
| (36,373,695)
| (63,774,379)
|
Return of capital
| –
| (526,610)
| –
| (8,973,011)
|
Net increase in net assets from distributions
| (9,697,382)
| (16,192,734)
| (36,373,695)
| (72,747,390)
|
Proceeds from shares issued from the reorganization resulting in the addition of 0,
12,315,499, 0 and 0 shares of common stock, respectively (Note 11)
| –
| 129,362,047
| –
| –
|
Change in net assets
| 23,219,881
| 120,123,950
| 86,248,516
| (7,774,469)
|
Net Assets:
|
|
|
|
|
Beginning of period
| 246,218,368
| 126,094,418
| 900,264,425
| 908,038,894
|
End of period
| $269,438,249
| $246,218,368
| $986,512,941
| $900,264,425
|
Amounts listed as
“–” are $0 or round to $0.
See Accompanying Notes to Financial
Statements.
16
| 2024 Semi-Annual Report
|
abrdn Global Dynamic Dividend
Fund
| For the
Six-Month
Period Ended
April 30,
| For the Fiscal Years Ended October 31,
|
| 2024
(unaudited)
| 2023
| 2022
| 2021
| 2020
| 2019
|
PER SHARE OPERATING PERFORMANCE(a):
|
|
|
|
|
|
|
Net asset value, beginning of period
| $9.90
| $10.05
| $12.95
| $10.16
| $11.14
| $10.80
|
Net investment income
| 0.30
| 0.75
| 0.68
| 0.82
| 0.70
| 0.76
|
Net realized and unrealized gains/(losses) on investments, forward
foreign currency exchange contracts and foreign currency transactions
| 1.03
| (0.12)
| (2.80)
| 2.75
| (0.90)
| 0.36
|
Total from investment operations
| 1.33
| 0.63
| (2.12)
| 3.57
| (0.20)
| 1.12
|
Distributions to common shareholders from:
|
|
|
|
|
|
|
Net investment income
| (0.39)
| (0.75)
| (0.73)
| (0.78)
| (0.76)
| (0.78)
|
Return of capital
| –
| (0.03)
| (0.05)
| –
| (0.02)
| –
|
Total distributions
| (0.39)
| (0.78)
| (0.78)
| (0.78)
| (0.78)
| (0.78)
|
Net asset value, end of period
| $10.84
| $9.90
| $10.05
| $12.95
| $10.16
| $11.14
|
Market price, end of period
| $9.31
| $8.40
| $8.92
| $12.01
| $8.58
| $9.78
|
Total Investment Return Based on(b):
|
|
|
|
|
|
|
Market price
| 15.53%
| 2.29%
| (19.88%)
| 49.84%
| (4.43%)
| 14.71%
|
Net asset value
| 14.14%
| 7.00%
| (16.28%)
| 36.44%
| (0.65%)
| 11.91%
|
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data:
|
|
|
|
|
|
|
Net assets applicable to common shareholders, end of period (000 omitted)
| $269,438
| $246,218
| $126,094
| $162,528
| $127,512
| $139,776
|
Average net assets applicable to common shareholders (000 omitted)
| $270,351
| $219,791
| $146,601
| $157,694
| $132,667
| $134,835
|
Net operating expenses, net of fee waivers
| 1.17%(c)
| 1.19%
| 1.18%
| 1.18%
| 1.18%
| 1.21%
|
Net operating expenses, excluding fee waivers
| 1.28%(c)
| 1.34%
| 1.37%
| 1.31%
| 1.36%
| 1.34%
|
Net operating expenses, net of fee waivers and
excluding interest expense
| 1.16%(c)
| 1.19%
| 1.16%
| 1.17%
| 1.17%
| 1.16%
|
Net Investment income
| 5.58%(c)
| 6.97%
| 5.86%
| 6.56%
| 6.59%
| 7.06%
|
Portfolio turnover
| 47%(d)
| 78%(e)
| 81%
| 71%
| 105%
| 119%
|
Line of credit payable outstanding (000 omitted)
| $7,908
| $1,537
| $–
| $311
| $–
| $211
|
Asset coverage ratio on revolving credit facility at period end(f)
| 3,507%
| 16,121%
| –
| 52,338%
| –
| 66,335%
|
Asset coverage per $1,000 on line of credit payable at period end
| $35,070
| $161,213
| $–
| $523,384
| $–
| $663,350
|
(a)
| Based on average shares outstanding.Amounts listed as “–” are $0 or round to $0.
|
2024 Semi-Annual Report
| 17
|
Financial Highlights (concluded)
abrdn Global Dynamic Dividend
Fund (concluded)
(b)
| Total investment return is calculated assuming a purchase of common stock on the first day and a sale on the last day of each reporting period. Dividends and distributions, if any, are assumed, for
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.
|
(c)
| Annualized.
|
(d)
| Not annualized.
|
(e)
| The portfolio turnover calculation excludes $100,050,254 and $90,865,012 of proceeds received and cost of investments related to rebalancing the portfolio after the
fund reorganization which occurred on March 10, 2023.
|
(f)
| Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings for investment purposes by the amount of the Line of Credit.
|
Amounts listed as
“–” are $0 or round to $0.
18
| 2024 Semi-Annual Report
|
abrdn Total Dynamic Dividend
Fund
| For the
Six-Month
Period Ended
April 30,
| For the Fiscal Years Ended October 31,
|
| 2024
(unaudited)
| 2023
| 2022
| 2021
| 2020
| 2019
|
PER SHARE OPERATING PERFORMANCE(a):
|
|
|
|
|
|
|
Net asset value, beginning of period
| $8.54
| $8.61
| $10.98
| $8.76
| $9.56
| $9.33
|
Net investment income
| 0.26
| 0.58
| 0.63
| 0.66
| 0.63
| 0.64
|
Net realized and unrealized gains/(losses) on investments, forward
foreign currency exchange contracts and foreign currency transactions
| 0.91
| 0.04
| (2.31)
| 2.25
| (0.74)
| 0.27
|
Total from investment operations
| 1.17
| 0.62
| (1.68)
| 2.91
| (0.11)
| 0.91
|
Distributions to common shareholders from:
|
|
|
|
|
|
|
Net investment income
| (0.35)
| (0.60)
| (0.69)
| (0.69)
| (0.67)
| (0.65)
|
Return of capital
| –
| (0.09)
| –
| –
| (0.02)
| (0.04)
|
Total distributions
| (0.35)
| (0.69)
| (0.69)
| (0.69)
| (0.69)
| (0.69)
|
Capital Share Transactions:
|
|
|
|
|
|
|
Anti-Dilutive effect of share repurchase program
| –
| –
| –
| –
| –
| 0.01
|
Net asset value, end of period
| $9.36
| $8.54
| $8.61
| $10.98
| $8.76
| $9.56
|
Market price, end of period
| $7.95
| $7.26
| $7.50
| $10.05
| $7.31
| $8.44
|
Total Investment Return Based on(b):
|
|
|
|
|
|
|
Market price
| 14.29%
| 5.41%
| (19.25%)
| 47.64%
| (5.47%)
| 15.55%
|
Net asset value
| 14.40%
| 8.01%
| (15.15%)
| 34.60%(c)
| 0.00%(c)
| 11.39%
|
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data:
|
|
|
|
|
|
|
Net assets applicable to common shareholders, end of period (000 omitted)
| $986,513
| $900,264
| $908,039
| $1,157,523
| $924,011
| $1,007,850
|
Average net assets applicable to common shareholders (000 omitted)
| $991,745
| $977,703
| $1,049,849
| $1,129,413
| $964,667
| $981,093
|
Net operating expenses, net of fee waivers
| 1.34%(d)
| 1.27%
| 1.16%
| 1.16%
| 1.15%
| 1.22%
|
Net operating expenses, excluding fee waivers
| 1.44%(d)
| 1.36%
| 1.21%
| 1.20%
| 1.18%
| 1.24%
|
Net operating expenses, net of fee waivers and
excluding interest expense
| 1.14%(d)
| 1.15%
| 1.14%
| 1.14%
| 1.14%
| 1.18%
|
Net Investment income
| 5.50%(d)
| 6.29%
| 6.36%
| 6.14%
| 6.93%
| 6.94%
|
Portfolio turnover
| 47%(e)
| 79%
| 83%
| 72%
| 115%
| 135%
|
Line of credit payable outstanding (000 omitted)
| $63,134
| $49,052
| $12,250
| $4,092
| $–
| $–
|
Asset coverage ratio on line of credit payable at period end(f)
| 1,663%
| 1,935%
| 7,512%
| 28,385%
| –
| –
Amounts listed as “–” are $0 or round to $0.
|
2024 Semi-Annual Report
| 19
|
Financial Highlights (concluded)
abrdn Total Dynamic Dividend
Fund (concluded)
| For the
Six-Month
Period Ended
April 30,
| For the Fiscal Years Ended October 31,
|
| 2024
(unaudited)
| 2023
| 2022
| 2021
| 2020
| 2019
|
Asset coverage per $1,000 on line of credit payable at period end
| $16,626
| $19,353
| $75,124
| $283,852
| $–
| $–
|
(a)
| Based on average shares outstanding.
|
(b)
| Total investment return is calculated assuming a purchase of common stock on the first day and a sale on the last day of each reporting period. Dividends and distributions, if any, are assumed, for
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.
|
(c)
| The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.
|
(d)
| Annualized.
|
(e)
| Not annualized.
|
(f)
| Asset coverage ratio is calculated by dividing net assets plus the amount of any borrowings for investment purposes by the amount of the Line of Credit.
|
Amounts listed as
“–” are $0 or round to $0.
20
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited)
April 30, 2024
abrdn Global Dynamic
Dividend Fund ("AGD") and abrdn Global Total Dynamic Dividend Fund ("AOD") (collectively, the “Funds" and each a "Fund") are diversified, closed-end management investment companies. AGD and AOD were organized as
a Delaware statutory trusts on May 11, 2006 and October 27, 2006, and commenced operations on July 26, 2006 and January 26, 2007, respectively. The primary investment objective for AGD is to seek high current dividend
income, more than 50% of which qualifies for the reduced federal income tax rates created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The primary investment objective for AOD is to seek high
current dividend income. The Funds also focus on long-term growth of capital as a secondary investment objective. The Board of Trustees of each Fund (each a "Board" and collectively, the "Boards") authorized an
unlimited number of shares with no par value.
On March 10, 2023, AGD
acquired the assets and assumed the liabilities of Delaware Enhanced Global Dividend and Income Fund ("DEX") and Delaware Investments® Dividend and Income Fund, Inc. ("DDF") pursuant to plans of reorganization
approved by the Board of AGD on August 11, 2022 ("Reorganizations"). In the Reorganizations, common shareholders of DEX and DDF received an amount of AGD common shares with a net asset value equal to the aggregate net
asset value of their holdings of DEX and DDF common shares, as determined at the close of regular business on March 10, 2023. Any applicable fractional shares were paid as cash-in-lieu to the applicable holder. The
Reorganizations were each structured as a tax-free transaction. The Fund is considered the tax survivor and accounting survivor of the Reorganizations.
The following is a summary of
the net asset value (“NAV”) per share issued as of March 10, 2023.
Acquired Fund
| AGD NAV per
Share ($) March 10, 2023
| Conversion Ratio
| Shares Issued
|
Delaware Enhanced Global Dividend
and Income Fund (“DEX”)
| 10.5040
| 0.835659
| 6,212,854
|
Delaware Investments® Dividend and
Income Fund, Inc. (“DDF”)
| 10.5040
| 0.801802
| 6,102,645
|
2. Summary of Significant
Accounting Policies
The Funds are investment companies and
accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services-Investment Companies. The
following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies conform to generally accepted accounting principles ("GAAP") in the United
States of America. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Funds are maintained
in U.S. Dollars and the U.S. Dollar is used as both the functional and reporting currency.
a. Security Valuation:
The Funds value their
securities at current market value or fair value, consistent with regulatory requirements. "Fair value" is defined in the Funds' Valuation and Liquidity Procedures as the price that could be received to sell an asset
or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date. Pursuant to Rule 2a-5 under the Investment Company Act of 1940,
as amended (the "1940 Act"), the
Board designated abrdn Investments Limited
(the "Adviser") as the valuation designee ("Valuation Designee") for the Funds to perform the fair value determinations relating to Fund investments for which market quotations are not readily available or deemed
unreliable.
Equity securities that are
traded on an exchange are valued at the last quoted sale price or the official close price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when
appropriate, of the valuation factors described in the paragraph below. Under normal circumstances, the Valuation Time is as of the close of regular trading on the New York Stock Exchange ("NYSE") (usually 4:00 p.m.
Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are
valued at the NASDAQ official closing price.
In accordance with the
authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Funds disclose the fair value of their investments using a three-level hierarchy that classifies the inputs to valuation
techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level, measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements
to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level,
2024 Semi-Annual Report
| 21
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
measurements to valuations based upon
unobservable inputs that are significant to the valuation. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example,
the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity.
Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information
available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.
Open-end mutual funds are
valued at the respective NAV as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will
use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time (defined below).
A security using any of these pricing methodologies is generally determined to be a Level 1 investment.
Foreign equity securities
that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an
independent pricing service provider. These valuation factors are used when pricing a Fund's portfolio holdings to estimate market movements between the time foreign markets close and the time a Fund values such
foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When
prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that
applies a valuation factor is generally determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is
unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold.
Derivative instruments are valued at fair
value. Exchange-traded futures are generally Level 1 investments and centrally cleared swaps and forwards are generally Level 2 investments. Forward foreign currency contracts are generally valued based on the bid
price of the forward rates and the current spot rate. Forward exchange rate quotations are available for scheduled settlement dates, such as 1-, 3-, 6-, 9- and 12-month periods. An interpolated valuation is derived
based on the actual settlement dates of the forward contracts held. Futures contracts are valued at the settlement price or at the last bid price if no settlement price is available. Swap agreements are generally
valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). When market quotations or exchange rates are not readily available, or if the Adviser concludes that such
market quotations do not accurately reflect fair value, the fair value of the Fund’s assets are determined in good faith in accordance with the Valuation Procedures.
Short-term investments are
comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Funds sweep available cash into the State Street Institutional U.S. Government Money Market Fund,
which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share NAV. Generally, these
investment types are categorized as Level 1 investments.
In the event that a
security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the security is valued
at fair value as determined by the Valuation Designee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been
fair valued by the Adviser may be classified as Level 2 or Level 3 depending on the nature of the inputs.
The three-level hierarchy of
inputs is summarized below:
Level 1 - quoted prices
(unadjusted) in active markets for identical investments;
Level 2 - other significant observable
inputs (including valuation factors, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk, etc.); or
Level 3 - significant unobservable inputs
(including the Fund’s own assumptions in determining the fair value of investments).
22
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
A summary of standard inputs is
listed below:
Security Type
| Standard Inputs
|
Debt and other fixed-income securities
| Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on
comparable securities, credit quality, yield, and maturity.
|
Foreign equities utilizing a fair value factor
| Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local
exchange opening and closing prices of each security.
|
Forward foreign currency contracts
| Forward exchange rate quotations.
|
The following is a summary of
the inputs used as of April 30, 2024 in valuing the Funds' investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:
| abrdn Global Dynamic Dividend Fund
|
Investments, at Value
| Level 1 – Quoted
Prices
| Level 2 – Other Significant
Observable Inputs
| Level 3 – Significant
Unobservable Inputs
| Total
|
abrdn Global Dynamic Dividend Fund
|
Assets
|
|
|
Investments in Securities
|
|
|
|
Common Stocks
| $169,293,786
| $98,678,164
| $–
| $267,971,950
|
Corporate Bonds
| –
| 500
| –
| 500
|
Preferred Stocks
| –
| 3,520,509
| –
| 3,520,509
|
Short-Term Investment
| 1,616,230
| –
| –
| 1,616,230
|
Total Investments
| $170,910,016
| $102,199,173
| $–
| $273,109,189
|
Other Financial Instruments
|
|
|
|
Foreign Currency Exchange Contracts
| $–
| $389,569
| $–
| $389,569
|
Total Investment Assets
| $170,910,016
| $102,588,742
| $–
| $273,498,758
|
Amounts listed as
“–” are $0 or round to $0.
| abrdn Total Dynamic Dividend Fund
|
Investments, at Value
| Level 1 – Quoted
Prices
| Level 2 – Other Significant
Observable Inputs
| Level 3 – Significant
Unobservable Inputs
| Total
|
abrdn Total Dynamic Dividend Fund
|
Assets
|
|
|
Investments in Securities
|
|
|
|
Common Stocks
| $626,902,979
| $386,298,383
| $–
| $1,013,201,362
|
Preferred Stocks
| –
| 13,484,389
| –
| 13,484,389
|
Short-Term Investment
| 6,062,282
| –
| –
| 6,062,282
|
Total Investments
| $632,965,261
| $399,782,772
| $–
| $1,032,748,033
|
Other Financial Instruments
|
|
|
|
Foreign Currency Exchange Contracts
| $–
| $1,475,943
| $–
| $1,475,943
|
Total Investment Assets
| $632,965,261
| $401,258,715
| $–
| $1,034,223,976
|
Amounts listed as
“–” are $0 or round to $0.
For the six-month period ended
April 30, 2024, there were no significant changes to the fair valuation methodologies.
2024 Semi-Annual Report
| 23
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
b. Restricted
Securities:
Restricted securities are privately-placed
securities whose resale is restricted under U.S. securities laws. The Funds may invest in restricted securities, including unregistered securities eligible for resale without registration pursuant to Rule 144A and
privately-placed securities of U.S. and non-U.S. issuers offered outside the U.S. without registration pursuant to Regulation S under the Securities Act of 1933, as amended (the "1933 Act"). Rule 144A securities may
be freely traded among certain qualified institutional investors, such as the Funds, but resale of such securities in the U.S. is permitted only in limited circumstances.
c. Foreign Currency
Translation:
Foreign securities,
currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by
an independent pricing service approved by the Board.
Foreign currency amounts are
translated into U.S. Dollars on the following basis:
(i) market value of investment
securities, other assets and liabilities – at the current daily rates of exchange at the Valuation Time; and
(ii) purchases and sales of
investment securities, income and expenses – at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that
portion of gains and losses on investments in equity securities due to changes in the foreign exchange rates from the portion due to changes in market prices of equity securities. Accordingly, realized and unrealized
foreign currency gains and losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions balances.
The Funds report certain
foreign currency related transactions and foreign taxes withheld on security transactions as components of realized gains for financial reporting purposes, whereas such foreign currency related transactions are
treated as ordinary income for U.S. federal income tax purposes.
Net unrealized currency gains
or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation
of other assets and liabilities denominated in foreign currencies.
Net realized foreign exchange
gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between the trade date and settlement date
on security transactions, and the difference between the amounts of interest and dividends
recorded on the Funds' books and the U.S.
Dollar equivalent of the amounts actually received.
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.
Generally, when the U.S. Dollar rises in value against foreign currency, the Funds' investments denominated in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the
opposite effect occurs if the U.S. Dollar falls in relative value.
d. Derivative Financial
Instruments:
The Funds are
authorized to use derivatives to manage currency risk, credit risk, and interest rate risk and to replicate, or use as a substitute for, physical securities. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract. The use of derivative instruments involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of
Assets and Liabilities.
Forward Foreign Currency Exchange
Contracts:
A forward foreign currency
exchange contract ("forward 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. Forward contracts are used to manage a Fund's currency exposure in an efficient manner. They are used to sell unwanted currency exposure that comes with holding securities
in a market, or to buy currency exposure where the exposure from holding securities is insufficient to give the desired currency exposure either in absolute terms or relative to a particular benchmark or index. The
use of forward contracts allows for the separation of investment decision-making between foreign exchange holdings and their currencies.
The forward contract is
marked-to-market daily and the change in market value is recorded by a Fund as unrealized appreciation or depreciation. Forward contracts' prices are received daily from an independent pricing provider. When the
forward contract is closed, a 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. These realized and unrealized gains and
losses are reported on the Statement of Operations. A Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or from unanticipated movements in exchange
rates. During the six-month period ended April 30, 2024, the Funds used forward contracts to hedge their currency exposure.
While a Fund may enter into
forward contracts to seek to reduce currency exchange rate risks, transactions in such contracts involve
24
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
certain risks. A Fund could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. Thus, while a Fund may benefit from such transactions, unanticipated
changes in currency prices may result in a poorer overall performance for a Fund than if it had not engaged in any such transactions. Moreover, there may be an imperfect correlation between a Fund’s portfolio
holdings or securities quoted or denominated in a particular currency and forward contracts entered into by the Fund. Such imperfect correlation may prevent a Fund from achieving a complete hedge, which will expose
the Fund to the risk of foreign exchange loss.
Forward contracts are subject to the risk
that the counterparties to such contracts may default on their obligations. Since a forward foreign currency exchange contract is not guaranteed by an exchange or clearing house, a default on the contract would
deprive a Fund of unrealized profits, transaction costs or the benefits of a currency hedge or force a Fund to cover its purchase or sale commitments, if any, at the market price at the time of the default.
Summary of Derivative
Instruments:
The Funds may
use derivatives for various purposes as noted above. The following is a summary of the fair value of derivative instruments, not accounted for as hedging instruments, as of April 30, 2024:
| Risk Exposure Category
|
| Interest
Rate
Contracts
| Foreign
Currency
Contracts
| Credit
Contracts
| Equity
Contracts
| Commodity
Contracts
| Other
| Total
|
abrdn Global Dynamic Dividend Fund
|
Assets:
|
Unrealized appreciation on:
|
Forward Foreign Currency Exchange Contracts
| $–
| $389,569
| $–
| $–
| $–
| $–
| $389,569
|
Total
| $–
| $389,569
| $–
| $–
| $–
| $–
| $389,569
|
Amounts listed as
“–” are $0 or round to $0.
| Risk Exposure Category
|
| Interest
Rate
Contracts
| Foreign
Currency
Contracts
| Credit
Contracts
| Equity
Contracts
| Commodity
Contracts
| Other
| Total
|
abrdn Total Dynamic Dividend Fund
|
Assets:
|
Unrealized appreciation on:
|
Forward Foreign Currency Exchange Contracts
| $–
| $1,475,943
| $–
| $–
| $–
| $–
| $1,475,943
|
Total
| $–
| $1,475,943
| $–
| $–
| $–
| $–
| $1,475,943
|
Amounts listed as
“–” are $0 or round to $0.
The Funds have
transactions that may be subject to enforceable master netting agreements. A reconciliation of the gross amounts on the Statements of Assets and Liabilities as of April 30, 2024 to the net amounts by broker and
derivative type, including any collateral received or pledged, is included in the following tables:
2024 Semi-Annual Report
| 25
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
| abrdn Global Dynamic Dividend Fund
|
|
| Gross Amounts Not Offset
in the Statement of
Assets and Liabilities
|
| Gross Amounts Not Offset
in the Statement of
Assets and Liabilities
|
| Gross Amounts
of Assets
Presented in
Statement of
Assets and
Liabilities
| Financial
Instruments
| Collateral
Received(1)
| Net
Amount(2)
| Gross Amounts
of Liabilities
Presented in
Statement of
Assets and
Liabilities
| Financial
Instruments
| Collateral
Pledged(1)
| Net
Amount(2)
|
Description
| Assets
| Liabilities
|
Foreign Currency Exchange Contracts(3)
|
Citibank N.A.
| $389,569
| $–
| $–
| $389,569
| $–
| $–
| $–
| $–
|
Amounts listed as
“–” are $0 or round to $0.
(1)
| In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
|
(2)
| Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be
netted across transactions governed under the same master netting agreement with the same legal entity.
|
(3)
| Includes financial instrument which are not subject to a master netting arrangement across funds, or another similar arrangement.
|
| abrdn Total Dynamic Dividend Fund
|
|
| Gross Amounts Not Offset
in the Statement of
Assets and Liabilities
|
| Gross Amounts Not Offset
in the Statement of
Assets and Liabilities
|
| Gross Amounts
of Assets
Presented in
Statement of
Assets and
Liabilities
| Financial
Instruments
| Collateral
Received(1)
| Net
Amount(2)
| Gross Amounts
of Liabilities
Presented in
Statement of
Assets and
Liabilities
| Financial
Instruments
| Collateral
Pledged(1)
| Net
Amount(2)
|
Description
| Assets
| Liabilities
|
Foreign Currency Exchange Contracts(3)
|
Citibank N.A.
| $1,475,943
| $–
| $–
| $1,475,943
| $–
| $–
| $–
| $–
|
Amounts listed as
“–” are $0 or round to $0.
(1)
| In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
|
(2)
| Net amounts represent the net receivables/(payable) that would be due from/to the counterparty in the event of default. Exposure from financial derivative instruments can only be
netted across transactions governed under the same master netting agreement with the same legal entity.
|
(3)
| Includes financial instrument which are not subject to a master netting arrangement across funds, or another similar arrangement.
|
26
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
The effect of derivative
instruments on the Statements of Operations for the six-month period ended April 30, 2024:
| Risk Exposure Category
|
| Interest
Rate
Contracts
| Foreign
Currency
Contracts
| Credit
Contracts
| Equity
Contracts
| Commodity
Contracts
| Total
|
abrdn Global Dynamic Dividend Fund
|
Realized Gain/(Loss) on Derivatives Recognized
as a Result of Operations:
|
Net realized gain/(loss) on:
|
Forward Currency Contracts
| $–
| $(335,795)
| $–
| $–
| $–
| $(335,795)
|
Total
| $–
| $(335,795)
| $–
| $–
| $–
| $(335,795)
|
Net Change in Unrealized Appreciation/(Depreciation) on
Derivatives Recognized as a Result of Operations:
|
Net change in unrealized appreciation/(depreciation) of:
|
Forward Currency Contracts
| $–
| $326,752
| $–
| $–
| $–
| $326,752
|
Total
| $–
| $326,752
| $–
| $–
| $–
| $326,752
|
Amounts listed as
“–” are $0 or round to $0.
| Risk Exposure Category
|
| Interest
Rate
Contracts
| Foreign
Currency
Contracts
| Credit
Contracts
| Equity
Contracts
| Commodity
Contracts
| Total
|
abrdn Total Dynamic Dividend Fund
|
Realized Gain/(Loss) on Derivatives Recognized
as a Result of Operations:
|
Net realized gain/(loss) on:
|
Forward Currency Contracts
| $–
| $(1,271,193)
| $–
| $–
| $–
| $(1,271,193)
|
Total
| $–
| $(1,271,193)
| $–
| $–
| $–
| $(1,271,193)
|
Net Change in Unrealized Appreciation/(Depreciation) on
Derivatives Recognized as a Result of Operations:
|
Net change in unrealized appreciation/(depreciation) of:
|
Forward Currency Contracts
| $–
| $1,236,467
| $–
| $–
| $–
| $1,236,467
|
Total
| $–
| $1,236,467
| $–
| $–
| $–
| $1,236,467
|
Amounts listed as
“–” are $0 or round to $0.
Information about derivatives reflected as
of the date of this report is generally indicative of the type of activity for the six-month period ended April 30, 2024. The tables below summarize the weighted average values of derivatives holdings for the Funds
during the six-month period ended April 30, 2024.
Derivative held in AGD
| Average
Notional Value
|
Foreign Currency Contracts Sold
| $21,077,918
|
Derivative held in AOD
| Average
Notional Value
|
Foreign Currency Contracts Sold
| $79,857,555
|
The Funds value derivatives at fair value,
as described in the Statements of Operations. Accordingly, the Funds do not follow hedge accounting even for derivatives employed as economic hedges.
e. Security Transactions,
Investment Income and Expenses:
Security transactions are
recorded on the trade date. Realized and unrealized gains/(losses) from security and foreign currency transactions are calculated on the identified cost basis.
Discounts and premiums on
securities purchased are accreted or amortized on an effective yield basis over the estimated lives of the respective securities.
2024 Semi-Annual Report
| 27
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
f. Distributions:
The Funds intend to make
regular monthly distributions of net investment income to holders of common shares. The Funds expect to pay their common shareholders annually all or substantially all of their investment company taxable income. In
addition, at least annually, the Funds intend to distribute all or substantially all of their net capital gains, if any.
Distributions from net
realized gains for book purposes may include short-term capital gains which are ordinary income for tax purposes. Distributions to common shareholders are recorded on the ex-dividend date.
Dividends and distributions
to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book-tax” differences are considered either temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment. Temporary differences do not require reclassification. To the
extent distributions exceed current and accumulated earnings and profits for federal income tax purposes they are reported to shareholders as return of capital.
g. Federal Income Taxes:
Each Fund intends to
continue to qualify as a “regulated investment company” ("RIC") by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986,
as amended (the "Code"), and to make distributions of net investment income and net realized capital gains sufficient to relieve the Funds from all federal income taxes. Therefore, no federal income tax provision is
required.
The Funds recognize the tax
benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Funds has concluded that there are no
significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Funds' U.S. federal and state tax returns for each of
the most recent four fiscal years up to the most recent fiscal year ended October 31, 2023 are subject to such review.
h. Foreign Withholding
Tax:
Dividend and interest
income from non-U.S. sources received by the Funds are generally subject to non-U.S. withholding taxes and are recorded on the Statements of Operations. The Funds file for tax reclaims for the refund of such
withholding taxes according to tax treaties. Tax reclaims that are deemed collectible are booked as tax reclaim receivable on the Statements of Assets and Liabilities. In addition, the Funds may be subject to capital
gains tax in certain countries in which they invest. The above taxes may be reduced or
eliminated under the terms of applicable
U.S. income tax treaties with some of these countries. The Funds accrue such taxes when the related income is earned.
In addition, when the Funds
sell securities within certain countries in which they invest, the capital gains realized may be subject to tax. Based on these market requirements and as required under GAAP, the Funds accrue deferred capital gains
tax on securities currently held that have unrealized appreciation within these countries. The amount of deferred capital gains tax accrued, if any, is reported on the Statements of Assets and Liabilities.
3. Agreements and Transactions
with Affiliates
a. Investment Adviser:
abrdn Investments Limited
serves as the Funds' investment adviser (the "Adviser") pursuant to investment advisory agreements (the “Advisory Agreements”) with the Funds. The Adviser is a wholly-owned indirect subsidiary of abrdn
plc. In rendering advisory services, the Adviser may use the resources of investment advisor subsidiaries of abrdn plc. These affiliates have entered into procedures pursuant to which investment professionals from
affiliates may render portfolio management and research services as associated persons of the Adviser.
As compensation for its
services to AGD, the Adviser receives an annual investment advisory fee of 1.00% based on the Fund’s average daily net assets, computed daily and payable monthly. For the six-month period ended April 30,
2024, AGD paid the Adviser $1,344,369.
As compensation for its
services to AOD, the Adviser receives an annual investment advisory fee of 1.00% based on the Fund’s average daily managed assets, computed daily and payable monthly. During the six-month period ended April 30,
2024, AOD paid the Adviser $5,081,964. “Managed Assets” means total assets of the Fund, including any form of investment leverage, minus all accrued expenses incurred in the normal course of operations,
but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of
debt securities), (ii) the issuance of preferred stock or other similar preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the Fund’s investment
objectives and policies, and/or (iv) any other means.
Effective May 4, 2018, the
Adviser entered into a written contract (the “Expense Limitation Agreement”) with the Funds that is effective through June 30, 2024. The Expense Limitation Agreement limits the total ordinary operating
expenses of the Funds (excluding any leverage costs, interest, taxes, brokerage commissions, and any non-routine expenses) from exceeding 1.16% and 1.14% of the average daily net
28
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
assets of AGD and AOD, respectively, on an
annualized basis. The total amount of the waiver for the six-month period ended April 30, 2024 pursuant to the Expense Limitation Agreement was $143,132 and $464,137 for AGD and AOD, respectivley.
The Adviser may request and
receive reimbursement from the Funds of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement as of a date not more than three years after the date when the Adviser
limited the fees or reimbursed the expenses; provided that the following requirements are met: the reimbursements do not cause the Funds to exceed the lesser of the applicable expense limitation in the contract at the
time the fees were limited or expenses are paid or the applicable expense limitation in effect at the time the expenses are being recouped by the Adviser, and the payment of such reimbursement is approved by the Board
on a quarterly basis (the “Reimbursement Requirements”). Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by the Adviser is not
permitted.
As of April 30, 2024, to the
extent the Reimbursement Requirements are met, the cumulative potential reimbursements to the Adviser from the Funds, based on expenses reimbursed by the Adviser, including adjustments described above, would be:
AGD
Amount Fiscal Year 2021 (Expires 10/31/24)
|
| $209,854
|
Amount Fiscal Year 2022 (Expires 10/31/25)
|
| $281,603
|
Amount Fiscal Year 2023 (Expires 10/31/26)
|
| $317,076
|
Amount Fiscal Year 2024 (Expires 10/31/27)
|
| $143,132
|
Total*
|
| $951,665
|
*
| Amounts reported are due to expire throughout the respective 3-year expiration period presented above.
|
Amount Fiscal Year 2021 (Expires 10/31/24)
|
| $491,643
|
Amount Fiscal Year 2022 (Expires 10/31/25)
|
| $593,179
|
Amount Fiscal Year 2023 (Expires 10/31/26)
|
| $840,966
|
Amount Fiscal Year 2024 (Expires 10/31/27)
|
| $464,137
|
Total*
|
| $2,389,925
|
*
| Amounts reported are due to expire throughout the respective 3-year expiration period presented above.
|
b. Fund Administrator:
abrdn Inc., an affiliate of
the Adviser, is the Funds' Administrator. Pursuant to the Administration Agreement, abrdn Inc. receives a fee paid by each Fund, at an annual fee rate of 0.08% of the Fund’s average daily net assets. State
Street Bank and Trust Company serves as AGD's Sub-Administrator. For the six-month period ended April 30, 2024, abrdn Inc. earned $107,549 and $394,530 from AGD and AOD, respectively from the Fund for administration
services.
c. Investor Relations:
Under the terms of the
Investor Relations Services Agreement, abrdn Inc. provides and/or engages third parties to provide investor relations services to the Funds and certain other funds advised by the Adviser or its affiliates as part of
an Investor Relations Program. Under the Investor Relations Services Agreement, each Fund owes a portion of the fees related to the Investor Relations Program (the “Fund’s Portion”). However,
Investor Relations Services fees are limited by abrdn Inc. so that each Fund will only pay up to an annual rate of 0.05% of the Fund’s average weekly net assets. Any difference between the capped rate of 0.05%
of each Fund’s average weekly net assets and each Fund’s Portion is paid for by abrdn Inc.
During the six-month period
ended April 30, 2024, AGD and AOD incurred investor relations fees of approximately $38,153 and $123,054, respectively. For the six-month period ended April 30, 2024, abrdn Inc. did not contribute to the
investor relations fees for the Funds because the Funds' contribution was below 0.05% of the Funds average weekly net assets on an annual basis.
4. Investment Transactions
Purchases and sales of
investment securities (excluding short-term securities) for the six-month period ended April 30, 2024, were $129,898,429 and $125,971,071, respectively for AGD.
Purchases and sales of
investment securities (excluding short-term securities) for the six-month period ended April 30, 2024, were $474,586,244 and $475,809,828, respectively for AOD.
5. Capital
As of April 30, 2024, there
were 24,865,081 and 105,430,999 shares of common stock issued and outstanding of AGD and AOD, respectively.
6. Open Market Repurchase
Policy
The Boards approved an open
market repurchase and discount management policy (the “Program”). The Program allows each Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase
determined at the discretion of the Fund’s investment adviser. Such purchases may be made opportunistically at certain discounts to net asset value per share in the reasonable judgment of management based on
historical discount levels and current market conditions.
On a quarterly basis, the
Boards will receive information on any transactions made pursuant to this policy during the prior quarter and management will post the number of shares repurchased on each Fund’s website on a monthly basis.
Under the terms of the Program, each Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market during any 12 month period.
2024 Semi-Annual Report
| 29
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
For the six-month period ended April 30, 2024,
the Funds did not repurchase any shares through this program.
7. Line of Credit
Each Fund has entered into a
lending agreement with BNP Paribas Prime Brokerage International Ltd. (“BNPP PB”).
AGD is allowed borrow on an
uncommitted and secured basis. The BNPP PB facility provides a secured, uncommitted line of credit for the Fund where selected Fund assets are pledged against advances made to the Fund. The Fund has granted a security
interest in all pledged assets used as collateral to the BNPP PB facility. The Fund is permitted to borrow up to the maximum allowable amount under the 1940 Act, as amended, of the total assets for extraordinary or
emergency purposes, which is generally, 33.33% of total assets, but may exceed that under certain market conditions. Additionally, the Fund is permitted to borrow up to 10% of the total assets for investment
purposes.
AOD is allowed to borrow on a
secured and committed basis. The maximum commitment amount is $300,000,000 however, the Fund may borrow up to 33.33% of its total assets on an uncommitted basis. The BNPP PB facility provides a secured, committed line
of credit for the Fund where certain Fund assets are pledged against advances made to the Fund. The Fund has granted a security interest in all pledged assets used as collateral to BNPP PB.
The interest on the BNPP PB
for both Funds on amounts borrowed are charged at a variable rate, which may be based on the Secured Overnight Financing Rate (“SOFR”) plus a spread. On April 30, 2024, the amount drawn on the line of
credit was $7,908,278 and $63,133,712 for AGD and AOD, respectively. Either BNPP PB or the Funds may terminate this agreement upon delivery of written notice. During the six-month period ended April 30, 2024, the
borrowing activity for the Funds was as follows:
Fund
| Max Borrowing
| Average
Borrowing
| Average
interest
rate on
Borrowing
| Interest
expense
related to
Line of Credit
|
AGD
| $7,908,234
| $562,251
| 6.28%
| $16,858
|
AOD
| $63,133,712
| $30,781,726
| 6.37%
| $993,219
|
|
|
|
|
|
|
|
|
|
|
8. Portfolio Investment
Risks
a. Dividend Strategy
Risk:
There is no guarantee that
the issuers of the stocks held by the Funds will declare dividends in the future or that, if dividends are declared, they will remain at their current levels or increase over time. The Funds' emphasis on dividend
paying stocks could cause the Funds to
underperform similar funds that invest
without consideration of a company’s track record of paying dividends or ability to pay dividends in the future. Dividend-paying stocks may not participate in a broad market advance to the same degree as other
stocks, and a sharp rise in interest rates or economic downturn could cause a company to unexpectedly reduce or eliminate its dividend. The Funds may hold securities for short periods of time related to the dividend
payment periods and may experience loss during these periods.
b. Emerging Markets
Risk:
The Funds are subject
to emerging market risk. This is a magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging market countries because the countries may have less
stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).
c. Equity Securities
Risk:
The stock or other security
of a company may not perform as well as expected, and may decrease in value, because of factors related to the company (such as poorer than expected earnings or certain management decisions) or to the industry in
which the company is engaged (such as a reduction in the demand for products or services in a particular industry). Holders of common stock generally are subject to more risks than holders of preferred stock or debt
securities because the right to repayment of common shareholders' claims is subordinated to that of preferred stock and debt securities upon the bankruptcy of the issuer.
d. Foreign Currency
Exposure Risk:
The value of foreign
currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces
the value in U.S. Dollars of investments denominated in that foreign currency. This risk may impact the Funds more greatly to the extent the Funds do not hedge their currency risk, or hedging techniques used by
the Adviser are unsuccessful.
e. Foreign Securities
Risk:
Foreign countries in which
the Funds may invest may have markets that are less liquid, less regulated and more volatile than U.S. markets. The value of the Funds' investments may decline because of factors such as unfavorable or unsuccessful
government actions, reduction of government or central bank support and political or financial instability. To the extent the Funds focus their investments in a single country or only a few countries in a
particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund.
30
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
f. Issuer Risk
The value of a security may
decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services. In an increasingly interconnected financial market, the
adverse changes in the financial conditions of one issuer may negatively affect other issuers.
g. Leverage Risk:
The Funds may use leverage
to purchase securities. Increases and decreases in the value of the Funds' portfolio will be magnified when the Funds use leverage.
h. Management Risk:
The Funds are subject
to the risk that the Adviser may make poor security selections. The Adviser, and its portfolio managers apply their own investment techniques and risk analyses in making investment decisions for the Funds and there
can be no guarantee that these decisions will achieve the desired results for the Funds. In addition, the Adviser may select securities that underperform the relevant market or other funds with similar investment
objectives and strategies.
i. Market Events Risk:
Markets are affected by
numerous factors, including interest rates, the outlook for corporate profits, the health of the national and world economies, the fluctuation of other stock markets around the world, and financial, economic and other
global market developments and disruptions, such as those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health
emergencies and natural/environmental disasters. Such events can negatively impact the securities markets and cause the Fund to lose value.
Policy and legislative
changes in countries around the world are affecting many aspects of financial regulation, and governmental and quasi-governmental authorities and regulators throughout the world have previously responded to serious
economic disruptions with a variety of significant fiscal and monetary policy changes.
The impact of these changes
on the markets, and the practical implications for market participants, may not be fully known for some time. In addition, economies and financial markets throughout the world are becoming increasingly interconnected.
As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to countries or sectors experiencing economic and financial difficulties, the value and liquidity of the
Fund’s investments may be negatively affected by such events.
j. Mid-Cap Securities
Risk
Securities of medium-sized
companies tend to be more volatile and less liquid than securities of larger companies.
k. Non-U.S. Taxation Risk
Income, proceeds and gains
received by a Fund from sources within foreign countries may be subject to withholding and other taxes imposed by such countries, which will reduce the return on those investments. Tax treaties between certain
countries and the United States may reduce or eliminate such taxes.
If, at the close of its
taxable year, more than 50% of the value of a Fund’s total assets consists of securities of foreign corporations, including for this purpose foreign governments, the Fund will be permitted to make an election
under the Code that will allow shareholders a deduction or credit for foreign taxes paid by the Fund. In such a case, shareholders will include in gross income from foreign sources their pro rata shares of such taxes.
A shareholder’s ability to claim an offsetting foreign tax credit or deduction in respect of such foreign taxes is subject to certain limitations imposed by the Code, which may result in the shareholder’s
not receiving a full credit or deduction (if any) for the amount of such taxes. Shareholders who do not itemize on their U.S. federal income tax returns may claim a credit (but not a deduction) for such foreign taxes.
If a Fund does not qualify for or chooses not to make such an election, shareholders will not be entitled separately to claim a credit or deduction for U.S. federal income tax purposes with respect to foreign taxes
paid by the Fund; in that case the foreign tax will nonetheless reduce the Fund’s taxable income. Even if a Fund elects to pass through to its shareholders foreign tax credits or deductions, tax-exempt
shareholders and those who invest in the Fund through tax-advantaged accounts such as IRAs will not benefit from any such tax credit or deduction.
l. Portfolio Turnover
Risk:
The Funds may engage in
active and frequent trading of portfolio securities to achieve their investment objectives. High portfolio turnover necessarily results in greater transaction costs which may reduce Fund performance. It may also
result in greater realization of gains, which may include short-term gains taxable at ordinary income tax rates.
m. Qualified Dividend
Income Tax Risk
Favorable U.S. federal tax
treatment of Fund distributions may be adversely affected, changed or repealed by future changes in tax laws.
n. Sector Risk:
To the extent that the
Funds have a significant portion of their assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector, the Funds may be more vulnerable to
unfavorable developments in that economic sector than funds that invest more broadly.
Information Technology Sector
Risk. To the extent that the information technology sector represents a significant portion of a Fund, the Fund will be sensitive to changes in, and its performance may depend to a
2024 Semi-Annual Report
| 31
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2024
greater extent on, factors impacting this
sector. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on their profit margins. Like other technology companies, information
technology companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face obsolescence due to rapid technological developments, frequent
new product introduction, unpredictable changes in growth rates, competition for the services of qualified personnel and reduced availability of financing options. Companies in the information technology sector are
heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies.
o. Small-Cap Securities
Risk
Securities of smaller
companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.
p. Valuation Risk:
The price that the Funds
could receive upon the sale of any particular portfolio investment may differ from the Funds' valuation of the
investment, particularly for securities that
trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less
than the value ascribed by the Funds, and the Funds could realize a greater than expected loss or lower than expected gain upon the sale of the investment. The Funds' ability to value their investments may also be
impacted by technological issues and/or errors by pricing services or other third-party service providers.
9. Contingencies
In the normal course of
business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made
against the Funds, and therefore, cannot be estimated; however, the Funds expect the risk of loss from such claims to be remote.
10. Tax
Information
The U.S. federal
income tax basis of the Funds' investments (including derivatives, if applicable) and the net unrealized appreciation as of April 30, 2024, were as follows:
Fund
| Tax Cost of
Securities
| Unrealized
Appreciation
| Unrealized
Depreciation
| Net
Unrealized
Appreciation/
(Depreciation)
|
abrdn Global Dynamic Dividend Fund
| $235,331,075
| $57,221,034
| $(19,442,920)
| $37,778,114
|
abrdn Total Dynamic Dividend Fund
| 821,392,188
| 293,067,498
| (81,711,653)
| 211,355,845
|
11. Fund
Reorganization
Effective March
10, 2023, AGD acquired all of the assets and assumed all of the liabilities of the Delaware Enhanced Global Dividend and Income Fund and Delaware Investments® Dividend and Income Fund, Inc. (the “Acquired
Funds”) pursuant to plans of reorganization approved by the AGD Board of Directors on August 11, 2022.
The acquisition was
accomplished by a tax-free exchange as follows:
15,045,838 shares of
the Acquired Funds, fair valued at $129,362,047 (breakout by Acquired Fund is listed below) for 12,315,499 shares of AGD.
The investment
portfolio and cash of the Acquired Funds, with a fair value of $128,538,930 and identified cost of $128,260,156 were the principal assets acquired by AGD. For financial reporting purposes, assets received and shares
issued by AGD were recorded at value; however, the cost basis of the investments received from the Acquired Funds was carried forward to align ongoing reporting of AGD's realized and unrealized gains and losses with
amounts distributable to shareholders for tax purposes. Immediately prior to the reorganization, the investment portfolio and cash of AGD was $134,563,276.
32
| 2024 Semi-Annual Report
|
Notes to Financial Statements (unaudited) (concluded)
April 30, 2024
Assuming that the
reorganizations had been completed on November 1, 2022, AGD's pro forma results of operations for the year ended October 31, 2023 are as follows:
|
|
Net investment income
| $15,776,428
|
Net realized and unrealized loss from investments
| (130,691)
|
Net increase in net assets from operations
| 15,645,737
|
Because the combined
investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Funds that have
been included in the Statement of Operations since March 10, 2023.
The chart below shows a summary
of net assets and shares outstanding, before and after the reorganizations.
| Shares
Outstanding
| Net Assets
| Net Asset
Value
Per Share
| Net Unrealized
Appreciation
(Depreciation)
| Accumulated
Net Realized
Gain/(Loss)
|
Before Reorganization
|
|
|
|
|
|
Delaware Enhanced Global Dividend and Income Fund
| 7,434,680
| $65,259,860
| $8.78
| $(2,610,551)
| $(17,659,389)
|
Delaware Investments® Dividend and Income Fund, Inc.
| 7,611,158
| 64,102,187
| 8.42
| 2,889,325
| 48,264,144
|
abrdn Global Dynamic Dividend Fund
| 12,549,582
| 131,820,591
| 10.50
| 15,599,066
| (22,032,091)
|
Total
|
| $261,182,638
|
| $15,877,840
| $8,572,664
|
| Shares
Outstanding
| Net Assets
| Net Asset
Value
Per Share
| Net Unrealized
Appreciation
(Depreciation)
| Accumulated
Net Realized
Gain/(Loss)
|
After Reorganization
|
|
|
|
|
|
abrdn Global Dynamic Dividend Fund
| 24,865,081
| $261,182,638
| $10.50
| $15,877,840
| $8,572,664
|
12. Subsequent Events
Management has evaluated
the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or adjustments were required to the
financial statements as of April 30, 2024, other than as noted below.
On May 9, 2024 and June 11,
2024, AGD and AOD announced that they will pay on May 31, 2024 and June 28, 2024, respectively, a distribution per share to all shareholders of record as of May 23, 2024 and June 21, 2024, respectively. AGD and AOD
will pay a distribution of $0.065 and $0.0575 per share, respectively.
On June 10, 2024, the Board of each Fund
approved the continuation of expense limitation agreement for each Fund for an additional year until at least June 30, 2025.
Effective June 30, 2024,
Stephen Bird, an interested Trustee, departed as CEO of abrdn plc and resigned from the Boards of the Funds. Effective June 30, 2024, Christian Pittard was appointed as an interested Trustee of the Funds.
2024 Semi-Annual Report
| 33
|
Dividend Reinvestment and Optional Cash Purchase
Plan (Unaudited)
The Funds intend to distribute to
shareholders substantially all of their net investment income and to distribute any net realized capital gains at least annually. Net investment income for this purpose is income other than net realized long-term and
short-term capital gains net of expenses. Pursuant to the Dividend Reinvestment and Optional Cash Purchase Plan (the “Plan”), shareholders whose shares of common stock are registered in their own names
will be deemed to have elected to have all distributions automatically reinvested by Computershare Trust Company N.A. (the “Plan Agent”) in the Fund shares pursuant to the Plan, unless such shareholders
elect to receive distributions in cash. Shareholders who elect to receive distributions in cash will receive such distributions paid by check in U.S. Dollars mailed directly to the shareholder by the Plan Agent, as
dividend paying agent. In the case of shareholders such as banks, brokers or nominees that hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares
certified from time to time by the shareholders as representing the total amount registered in such shareholders’ names and held for the account of beneficial owners that have not elected to receive
distributions in cash. Investors that own shares registered in the name of a bank, broker or other nominee should consult with such nominee as to participation in the Plan through such nominee and may be required to
have their shares registered in their own names in order to participate in the Plan. Please note that the Funds do not issue certificates so all shares will be registered in book entry form. The Plan Agent serves as
agent for the shareholders in administering the Plan. If the Trustees of a Fund declare an income dividend or a capital gains distribution payable either in the Funds' common stock or in cash, nonparticipants in
the Plan will receive cash and participants in the Plan will receive common stock, to be issued by the Funds or purchased by the Plan Agent in the open market, as provided below. If the market price per share (plus
expected per share fees) on the valuation date equals or exceeds NAV per share on that date, the Funds will issue new shares to participants at NAV; provided, however, that if the NAV is less than 95% of the market
price on the valuation date, then such shares will be issued at 95% of the market price. The valuation date will be the payable date for such distribution or dividend or, if that date is not a trading day on the NYSE,
the immediately preceding trading date. If NAV exceeds the market price of Fund shares at such time, or if the Funds should declare an income dividend or capital gains distribution payable only in cash, the Plan Agent
will, as agent for the participants, buy Fund shares in the open market, on the NYSE or elsewhere, for the participants’ accounts on, or shortly after, the payment date. If, before the Plan Agent has completed
its purchases, the market price exceeds the NAV of the Funds' share, the average per share purchase price paid by the Plan Agent may exceed the NAV of the Funds' shares, resulting in the acquisition of fewer shares
than if the distribution had been paid in shares issued by the Funds on the dividend payment date. Because of
the foregoing difficulty with respect to
open-market purchases, the Plan provides that if the Plan Agent is unable to invest the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premium
during the purchase period, the Plan Agent will cease making open-market purchases and will receive the uninvested portion of the dividend amount in newly issued shares at the close of business on the last purchase
date.
Participants have the option
of making additional cash payments of a minimum of $50 per investment (by check, one-time online bank debit or recurring automatic monthly ACH debit) to the Plan Agent for investment in the Funds' common stock, with
an annual maximum contribution of $250,000. The Plan Agent will wait up to three business days after receipt of a check or electronic funds transfer to ensure it receives good funds. Following confirmation of receipt
of good funds, the Plan Agent will use all such funds received from participants to purchase Fund shares in the open market on the 25th day of each month or the next trading day if the 25th is not a trading day.
If the participant sets up
recurring automatic monthly ACH debits, funds will be withdrawn from his or her U.S. bank account on the 20th of each month or the next business day if the 20th is not a banking business day and invested on the next
investment date. The Plan Agent maintains all shareholder accounts in the Plan and furnishes written confirmations of all transactions in an account, including information needed by shareholders for personal and tax
records. Shares in the account of each Plan participant will be held by the Plan Agent in the name of the participant, and each shareholder’s proxy will include those shares purchased pursuant to the Plan. There
will be no brokerage charges with respect to common shares issued directly by the Funds. However, each participant will pay a per share fee of $0.02 incurred with respect to the Plan Agent’s open market
purchases in connection with the reinvestment of dividends, capital gains distributions and voluntary cash payments made by the participant. Per share fees include any applicable brokerage commissions the Plan Agent
is required to pay.
Participants also have the
option of selling their shares through the Plan. The Plan supports two types of sales orders. Batch order sales are submitted on each market day and will be grouped with other sale requests to be sold. The price will
be the average sale price obtained by Computershare’s broker, net of fees, for each batch order and will be sold generally within 2 business days of the request during regular open market hours. Please note that
all written sales requests are always processed by Batch Order. ($10 and $0.12 per share). Market Order sales will sell at the next available trade. The shares are sold real time when they hit the market, however an
available trade must be presented to complete this transaction. Market Order sales may only
34
| 2024 Semi-Annual Report
|
Dividend Reinvestment and Optional Cash Purchase
Plan (Unaudited) (concluded)
be requested by phone at 1-800-647-0584 or
using Investor Center through www.computershare.com/buyaberdeen. ($25 and $0.12 per share).
The receipt of dividends and
distributions under the Plan will not relieve participants of any income tax that may be payable on such dividends or distributions. The Funds or the Plan Agent may terminate the Plan as applied to any voluntary cash
payments made and any dividend or distribution paid subsequent to notice of the termination sent to members of the Plan at least 30 days prior to the record date for such dividend or distribution. The Plan also may be
amended by
the Funds or the Plan Agent, but (except
when necessary or appropriate to comply with applicable law or the rules or policies of the Securities and Exchange Commission or any other regulatory authority) only by mailing a written notice at least 30 days prior
to the effective date to the participants in the Plan. All correspondence concerning the Plan should be directed to the Plan Agent by phone at 1-800-647-0584, using Investor Center through www.computershare.com/buyaberdeen or in writing to Computershare Trust Company N.A., P.O. Box 43006, Providence, RI 02940-3078.
2024 Semi-Annual Report
| 35
|
[THIS PAGE INTENTIONALLY LEFT BLANK]
Trustees
P. Gerald Malone, Chair
Stephen Bird
Todd Reit
John Sievwright
Nancy Yao
Investment Adviser
abrdn Investments Limited
1 George Street
Edinburgh, EH2 2LL
United Kingdom
Administrator
abrdn Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43006
Providence, RI 02940-3078
Independent Registered Public
Accounting Firm
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Legal Counsel
Dechert LLP
1900 K Street N.W.
Washington D.C. 20006
Investor Relations
abrdn Inc.
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abrdn.com
The Financial Statements
as of April 30, 2024, included in this report, were not audited and accordingly, no opinion is expressed thereon.
Notice is hereby given in
accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may purchase, from time to time, shares of its common stock in the open market.
Shares of abrdn Global
Dynamic Dividend Fund and abrdn Total Dynamic Dividend Fund are traded on the NYSE under the symbols “AGD” and “AOD”, respectively. Information about the Funds' net asset value and market price
is available at www.abrdnagd.com (AGD) and www.abrdnaod.com (AOD).
This report, including
the financial information herein, is transmitted to the shareholders of abrdn Global Dynamic Dividend Fund and abrdn Total Dynamic Dividend Fund 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 results.
(b) Not applicable.
Item 2. Code of Ethics.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 3. Audit Committee Financial Expert.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 4. Principal Accountant Fees and Services.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 6. Schedule of Investments.
(a) Schedule of Investments in securities
of unaffiliated issuers as of close of the reporting period is included as part of the Report to Shareholders filed under Item 1 of this
Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) Not applicable to semi-annual report on Form N-CSR.
(b) There
has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1)of this
Item in the registrant’s most recently filed annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
Period | |
(a) Total No. of Shares Purchased | | |
(b) Average Price Paid per Share | | |
(c) Total No. of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | | |
(d) Maximum No. of Shares that May Yet Be Purchased Under the Plans or Programs(1) | |
Month #1 (Nov. 1, 2023 — Nov. 30, 2023) | |
| — | | |
| — | | |
| — | | |
| 6,378,455 | |
Month #2 (Dec. 1, 2023 — Dec. 31, 2023) | |
| — | | |
| — | | |
| — | | |
| 6,378,455 | |
Month #3 (Jan. 1, 2024 — Jan. 31, 2024) | |
| — | | |
| — | | |
| — | | |
| 6,378,455 | |
Month #4 (Feb. 1, 2024 — Feb. 29, 2024) | |
| — | | |
| — | | |
| — | | |
| 6,378,455 | |
Month #5 (Mar. 1, 2024 — Mar. 31, 2024) | |
| — | | |
| — | | |
| — | | |
| 6,378,455 | |
Month #5 (Apr. 1, 2024 — Apr. 30, 2024) | |
| | | |
| | | |
| | | |
| 6,378,455 | |
Total | |
| — | | |
| — | | |
| — | | |
| | |
|
(1) |
On June 13, 2018, the Board approved an open market share repurchase program (the “Program”). The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund’s investment adviser. Such purchases may be made opportunistically at certain discounts to NAV per share in the reasonable judgment of management based on historical discount levels and current market conditions. On a quarterly basis, the Fund’s Board will receive information on any transactions made pursuant to this policy during the prior quarter and management will post the number of shares repurchased on the Fund's website on a monthly basis. Under the terms of the Program, the Fund is permitted to repurchase up to 10% of its outstanding shares of common stock in the open market during any 12 month period. For the six-month period ended April 30, 2024, the Fund did not repurchase any shares through this program. |
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended April 30, 2024, there were no material
changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
| (a) | The Registrant’s principal executive and principal financial officers, or persons performing similar
functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required
by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange
Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d15(b)). |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined
in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies
Not applicable
Item 13. Recovery of Erroneously Awarded Compensation
Not appliable
Item 14. Exhibits.
| (a)(4) | Change in Registrant’s independent public accountant.
Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
abrdn Total Dynamic Dividend Fund |
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By: |
/s/ Alan Goodson |
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Alan Goodson, |
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Principal Executive Officer of |
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abrdn Total Dynamic Dividend Fund |
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Date: July 8, 2024
Pursuant to the requirements of the Securities
Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
By: |
/s/ Alan Goodson |
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Alan Goodson, |
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Principal Executive Officer of |
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abrdn Total Dynamic Dividend Fund |
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Date: July 8, 2024
By: |
/s/ Sharon Ferrari |
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Sharon Ferrari, |
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Principal Financial Officer of |
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abrdn Total Dynamic Dividend Fund |
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Date: July 8, 2024
Exhibit 99.CERT
Certification
Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Sharon Ferrari, certify that:
| 1. | I have reviewed this report on Form N-CSR of abrdn Total Dynamic Dividend Fund (the “Registrant”); |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this
report; |
| 4. | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
Registrant’s internal control over financial reporting; and |
| 5. | The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s
auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and
report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Registrant’s internal control over financial reporting. |
Date: July 8, 2024
/s/ Sharon Ferrari |
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Sharon Ferrari |
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Principal Financial Officer |
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Certification
Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Alan Goodson, certify that:
| 1. | I have reviewed this report on Form N-CSR of abrdn Total Dynamic Dividend Fund (the “Registrant”); |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this
report; |
| 4. | The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
Registrant’s internal control over financial reporting; and |
| 5. | The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s
auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and
report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Registrant’s internal control over financial reporting. |
Date: July 8, 2024
/s/ Alan Goodson |
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Alan Goodson |
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Principal Executive Officer |
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Exhibit 99.906CERT
Certification
Pursuant to Rule 30a-2(b) under
the 1940 Act and Section 906 of the Sarbanes-Oxley Act
Alan Goodson, Principal Executive Officer, and
Sharon Ferrari, Principal Financial Officer, of abrdn Total Dynamic Dividend Fund (the “Registrant”), each certify that:
| 1. | The Registrant’s periodic report on Form N-CSR for the period ended April 30, 2024 (the
“Form N-CSR”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934, as amended, as applicable; and |
| 2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial
condition and results of operations of the Registrant. |
PRINCIPAL EXECUTIVE OFFICER |
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abrdn Total Dynamic Dividend Fund |
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/s/ Alan Goodson |
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Alan Goodson |
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Date: July 8, 2024 |
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PRINCIPAL FINANCIAL OFFICER |
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abrdn Total Dynamic Dividend Fund |
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/s/ Sharon Ferrari |
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Sharon Ferrari |
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Date: July 8, 2024 |
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This certification is being furnished solely pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document.
A signed original of this written statement, or other document authenticating, acknowledging, or otherwise adopting the signature that
appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Registrant
and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.
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