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:   October 31, 2023

 

 

 

 

 

Item 1. Reports to Stockholders.

 

 

 

abrdn Global Dynamic Dividend Fund (AGD)
abrdn Total Dynamic Dividend Fund (AOD)
Annual Report
October 31, 2023
abrdn.com

 


 

Letter to Shareholders  (unaudited) 

Dear Shareholder,
We present the 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 fiscal year ended October 31, 2023. 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 fiscal year ended October 31, 2023, 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 7.00% 8.01%
Market Price2 2.29% 5.41%
MSCI AC World Index (Net DTR)4 10.50% 10.50%
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 fiscal year end to prior fiscal year end of market price to NAV and associated Premium(+) and Discount(-).
  AGD    
  NAV Closing
Market
Price
Premium(+)/
Discount(-)
10/31/2023 $9.90 $8.40 -15.15%
10/31/2022 $10.05 $8.92 -11.24%
During the fiscal year ended October 31, 2023, AGD’s NAV was within a range of $9.74 to $11.31 and AGD’s market price traded within a range of $8.20 to $10.11. During the fiscal year ended October 31, 2023, AGD’s shares traded within a range of a premium(+)/discount(-) of -8.96% to -16.50%.
  AOD    
  NAV Closing
Market
Price
Premium(+)/
Discount(-)
10/31/2023 $8.54 $7.26 -14.99%
10/31/2022 $8.61 $7.50 -12.89%
During the fiscal year ended October 31, 2023, AOD's NAV was within a range of $8.39 to $9.72 and AOD's market price traded within a range of $7.02 to $8.54. During the fiscal year ended October 31, 2023, the AOD's shares traded within a range of a premium(+)/discount(-) of -10.99% to -17.12%.
 
{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.
2023 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 fiscal year ended October 31, 2023 are shown in the table below:
Fund Distribution
per share
NAV annualized
distribution rate
Market Price
annualized
distribution rate
AGD $0.78 7.88% 9.29%
AOD $0.69 8.08% 9.50%
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 November 9, 2023 and December 11, 2023, AOD and AGD announced that they will pay on November 30, 2023 and January 10, 2024, respectively, a distribution per share to all shareholders of record as of November 22, 2023 and December 29, 2023, 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 fiscal year ended October 31, 2023, 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 a 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
 
2 2023 Annual Report

 

Letter to Shareholders  (unaudited)  (concluded)

information. In addition, you can receive electronic versions of 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.
2023 Annual Report 3

 

abrdn Global Dynamic Dividend Fund 
Report of the Investment Adviser (unaudited)

Market review - AGD
Global stock markets generally rose over the past 12 months under review. Inflation dominated the economic environment. Central banks in western economies raised interest rates faster and much further than previously anticipated to counter multi-decade-high inflation. Despite these aggressive central bank actions, core inflation—which strips out volatile items such as energy and food—stayed at elevated levels in many countries. Nevertheless, global economic growth held up better than many investors expected, defying fears of a recession triggered by higher rates.
As  U.S. and Eurozone inflation trended down towards the end of 2022, investors’ hopes rose that an end to interest rate rises could be in sight. Therefore, 2023 started with strong stock market gains. However, the collapse of two regional U.S. banks and the forced sale of Credit Suisse to rival UBS in March then evoked fears of a banking crisis. Despite an initial sell-off, stock markets recovered, helped by expectations of lower peak interest rates. After more market volatility1 in April and May, equities performed strongly over June and July due to news of a compromise agreement on the U.S. debt ceiling2 and further encouraging inflation data. This was despite still-hawkish rhetoric from central banks. Equities then generated negative returns in August, September, and October given concerns that interest rates would stay higher for longer, with the outbreak of war between Israel and Hamas adding to existing inflationary worries.
Fund performance review - AGD
The abrdn Global Dynamic Dividend Fund returned 7.0% on a net asset value3 basis for the 12-month period ending October 31, 2023, versus the 10.5% return of its benchmark, the Morgan Stanley Capital International (MSCI) All Country (AC) World Index (Net Daily Total Return), during the same period. The unlevered NAV returned 7.1% for the 12-month period ending October 2023 demonstrating that the leverage had a negative impact of -0.1% to fund performance over that timeframe.
The Fund posted a positive total return but underperformed its benchmark. Asset allocation and, to a lesser extent, stock selection detracted from performance. The Fund’s stock selection and underweight4 positions in both the information technology and communication services sectors were headwinds. By region, North
America detracted the most, mainly due to stock selection, with a small negative effect from being underweight. Africa and the Middle East only slightly added value, as a positive effect from being underweight was partially offset by negative stock selection.
The largest detractors from performance were the Fund’s lack of exposure to semiconductor manufacturer NVIDIA and social media giant Meta Platforms (with the former only paying a small dividend and the latter not paying a dividend). A holding in financial services technology provider Fidelity National Information Services also hurt performance.
Shares in U.S.-based chipmaker NVIDIA surged after the company gave a very bullish sales forecast on the demand for artificial intelligence (AI) processors. This took the stock to an all-time high and dragged the rest of the sector up with it. Shares in social media and advertising giant Meta Platforms also rose strongly as the company benefited from its aggressive cost-cutting programme and its investments in AI. The latter have helped the company to attract traffic to Facebook and Instagram, as well as to increase its advertising revenues. Shares in Fidelity National Information Services, the U.S.-listed payment services provider, were weak due to macroeconomic headwinds, particularly within its merchant and banking segments.
Conversely, the Fund’s stock selection was positive in both the materials and financials sectors, with an overweight5 exposure to the former also beneficial. By region, Asia-Pacific (excluding Japan) was the largest positive due to stock selection. The overweight exposure to Europe (excluding the U.K.) also added value, although stock selection was a negative.
At the individual stock level,  contributors to performance included holdings in semiconductor manufacturers BE Semiconductor Industries and Broadcom, as well as Japan-listed Mitsubishi UFJ Financial Group.
BE Semiconductor Industries benefited from U.S.-based chipmaker NVIDIA’s previously mentioned very bullish sales forecast on the demand for AI processors. Broadcom shares performed well as the company reported strong results, helped by surging demand for its
 
{foots1}
1 If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable, it is said to have 'low volatility'. Volatility can be used as a measure of risk.
{foots1}
2 The maximum amount of money that the U.S. government is allowed to borrow to meet its obligations.
{foots1}
3 A key measure of the value of a company, fund, or trust is the total value of assets less liabilities, divided by the number of shares.
{foots1}
4 A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio.
{foots1}
5 A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio.
4 2023 Annual Report

 

abrdn Global Dynamic Dividend Fund  (concluded)
Report of the Investment Adviser (unaudited)

AI-related semiconductors. Mitsubishi UFJ aided relative performance, largely due to interest rate actions initiated by the Bank of Japan.
Regarding the use of derivatives, we continued to hedge a portion of the Fund’s currency exposure to the euro during the reporting period.
The Fund earns income through a combination of investing in companies that pay dividends and implementing a dividend-capture strategy. In a dividend-capture trade, the Fund sells a stock on or shortly after the stock's ex-dividend6 date and reinvests the sales proceeds into one or more other stocks that are expected to pay dividends before the next dividend payment on the stock that it is selling. While employing this strategy, the Fund purchases companies that pay regular and/or special dividends. 
The monthly distribution7 reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a significant impact on the Fund’s investment strategy over the reporting period. During the 12-month period ending October 31, 2023, the distributions comprised the vast majority of dividend income. The Fund issued distributions totaling $0.78 per share for the 12-month period ending October 31, 2023.
Outlook - AGD
Pressures caused by high energy prices, geopolitical tensions, the cost-of-living crisis, and rising interest rates still prevail in many parts
of the world and will be around for some time, in our view. While markets continue to move higher in many areas, particularly in the U.S., it remains a very narrow handful of stocks that are behind this. Against such a challenging backdrop, the portfolio will remain diversified, defensive, and focused on businesses best positioned to manage financial pressures through to times of greater market stability. We believe that periods of market weakness, when they occur, represent an opportunity for the long-term investor. We reiterate the importance of a diversified portfolio with a bottom-up investment approach focused on quality characteristics.
Risk Considerations
Past performance is not an indication of future results.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to risks associated with less stringent accounting and regulatory standards, the impact of currency exchange rate fluctuation, political and economic instability, reduced information about issuers, higher transaction costs and delayed settlement. Equity stocks of small- and mid-cap companies carry greater risk, and more volatility, than equity stocks of larger, more established companies. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.
abrdn Investments Limited 
 
{foots1}
6 Also abbreviated as 'xd', this is a share sold without the right to receive the declared dividend payment which is marked as due to those shareholders who are on the share register. The stock market authorities usually specify the date on which a share will begin trading 'xd'. The share price invariably drops when the share goes 'xd' taking the known income of the dividend out of the share price.
{foots1}
7 The payment of any income generated by a fund.
2023 Annual Report 5

 

abrdn Total Dynamic Dividend Fund 
Report of the Investment Adviser (unaudited)

Market review - AOD
Global stock markets generally rose over the past 12 months under review. Inflation dominated the economic environment. Central banks in western economies raised interest rates faster and much further than previously anticipated to counter multi-decade-high inflation. Despite these aggressive central bank actions, core inflation—which strips out volatile items such as energy and food—stayed at elevated levels in many countries. Nevertheless, global economic growth held up better than many investors expected, defying fears of a recession triggered by higher rates.
As U.S. and Eurozone inflation trended down towards the end of 2022, investors’ hopes rose that an end to interest rate rises could be in sight. Therefore, 2023 started with strong stock market gains. However, the collapse of two regional U.S. banks and the forced sale of Credit Suisse to rival UBS in March then evoked fears of a banking crisis. Despite an initial sell-off, stock markets recovered, helped by expectations of lower peak interest rates. After more market volatility1 in April and May, equities performed strongly over June and July due to news of a compromise agreement on the U.S. debt ceiling2 and further encouraging inflation data. This was despite still-hawkish rhetoric from central banks. Equities then generated negative returns in August, September, and October given concerns that interest rates would stay higher for longer, with the outbreak of war between Israel and Hamas adding to existing inflationary worries.
Fund performance review - AOD
The abrdn Total Dynamic Dividend Fund returned 8.0% on a net asset value3 basis for the 12-month period ending October 31, 2023, versus the 10.5% return of its benchmark, the Morgan Stanley Capital International (MSCI) All Country (AC) World Index (Net Daily Total Return), during the same period. The unlevered NAV returned 8.1% for the 12-month period ending October 2023 demonstrating that the leverage had a negative impact of -0.1% to fund performance over that timeframe.
The Fund posted a positive total return but underperformed its benchmark. Asset allocation and, to a lesser extent, stock selection detracted from performance. The Fund’s stock selection and underweight4 positions in both the communication services and information technology sectors were headwinds. By region, North
America detracted the most, due to stock selection. Japan only had a small positive impact as the value added from stock selection was mostly offset by a negative effect from being underweight.
The largest detractors from performance were the Fund’s lack of exposure to semiconductor manufacturer NVIDIA and social media giant Meta Platforms (with the former only paying a small dividend and the latter not paying a dividend). A holding in financial services technology provider Fidelity National Information Services also hurt performance.
Shares in U.S.-based chipmaker NVIDIA surged after the company gave a very bullish sales forecast on the demand for artificial intelligence (AI) processors. This took the stock to an all-time high and dragged the rest of the sector up with it. Shares in social media and advertising giant Meta Platforms also rose strongly as the company benefited from its aggressive cost-cutting programme and its investments in AI. The latter have helped the company to attract traffic to Facebook and Instagram, as well as to increase its advertising revenues. Shares in Fidelity National Information Services, the U.S.-listed payment services provider, were weak due to macroeconomic headwinds, particularly within its merchant and banking segments.
Conversely, the Fund’s stock selection was positive in both the materials and financials sectors, with an overweight5 exposure to the former also beneficial. By region, Asia-Pacific (excluding Japan) was the largest positive due to stock selection. Exposure to the U.K. also added value as positive stock selection was only partially offset by a negative effect from being overweight.
At the individual stock level, key contributors to performance included holdings in semiconductor manufacturers BE Semiconductor Industries and Broadcom, as well as U.K.-listed industrial turnaround specialist Melrose Industries.
BE Semiconductor Industries benefited from NVIDIA’s previously mentioned very bullish sales forecast on the demand for AI processors. Melrose Industries spun off its automotive business to become a pure-play aerospace company. In addition, it held its first ‘capital markets day’ as a standalone company. Management presented a comprehensive overview of the aerospace business' positive fundamentals. Broadcom shares performed well as the
 
{foots1}
1 If the price of a fund moves significantly over a short period of time it is said to be 'volatile' or has 'high volatility'. If the price remains relatively stable, it is said to have 'low volatility'. Volatility can be used as a measure of risk.
{foots1}
2 The maximum amount of money that the U.S. government is allowed to borrow to meet its obligations.
{foots1}
3 A key measure of the value of a company, fund, or trust is the total value of assets less liabilities, divided by the number of shares.
{foots1}
4 A portfolio holding less of a particular security (or sector or region) than the security’s weight in the benchmark portfolio.
{foots1}
5 A portfolio holding an excess amount of a particular security (or sector or region) compared to the security’s weight in the benchmark portfolio.
6 2023 Annual Report

 

abrdn Total Dynamic Dividend Fund  (concluded)
Report of the Investment Adviser (unaudited)

company reported strong results, helped by surging demand for its AI-related semiconductors.
Regarding the use of derivatives, we continued to hedge a portion of the Fund’s currency exposure to the euro during the reporting period.
The Fund earns income through a combination of investing in companies that pay dividends and implementing a dividend-capture strategy. In a dividend-capture trade, the Fund sells a stock on or shortly after the stock's ex-dividend6 date and reinvests the sales proceeds into one or more other stocks that are expected to pay dividends before the next dividend payment on the stock that it is selling. While employing this strategy, the Fund purchases companies that pay regular and/or special dividends.
The monthly distribution7 reflects the Fund’s current policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a significant impact on the Fund’s investment strategy over the reporting period. During the 12-month period ending October 31, 2023, the distributions comprised of net investment income and return of capital. The Fund issued distributions totaling $0.69 per share for the 12-month period ending October 31, 2023.
Outlook - AOD
Pressures caused by high energy prices, geopolitical tensions, the cost-of-living crisis, and rising interest rates still prevail in many parts of the world and will be around for some time, in our view. While
markets continue to move higher in many areas, particularly in the U.S., it remains a very narrow handful of stocks that are behind this. Against such a challenging backdrop, the portfolio will remain diversified, defensive, and focused on businesses best positioned to manage financial pressures through to times of greater market stability. We believe that periods of market weakness, when they occur, represent an opportunity for the long-term investor. We reiterate the importance of a diversified portfolio with a bottom-up investment approach focused on quality characteristics.
Risk Considerations
Past performance is not an indication of future results.
Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. They are subject to risks associated with less stringent accounting and regulatory standards, the impact of currency exchange rate fluctuation, political and economic instability, reduced information about issuers, higher transaction costs and delayed settlement. Equity stocks of small- and mid-cap companies carry greater risk, and more volatility, than equity stocks of larger, more established companies. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited. The use of leverage will also increase market exposure and magnify risk.
abrdn Investments Limited 
 
{foots1}
6 Also abbreviated as 'xd', this is a share sold without the right to receive the declared dividend payment which is marked as due to those shareholders who are on the share register. The stock market authorities usually specify the date on which a share will begin trading 'xd'. The share price invariably drops when the share goes 'xd' taking the known income of the dividend out of the share price.
{foots1}
7 The payment of any income generated by a fund.
2023 Annual Report 7

 

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 1-year, 3-year, 5-year and 10-year periods ended October 31, 2023.
AGD 1 Year 3 Years 5 Years 10 Years
Net Asset Value (NAV) 7.00% 6.92% 6.33% 7.04%
Market Price 2.29% 7.09% 6.13% 6.40%
MSCI AC World Index (Net DTR) 10.50% 6.68% 7.47% 6.81%
Performance of a $10,000 Investment for AGD (as of October 31, 2023)
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 October 31, 2023. 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 net operating expense ratio excluding fee waivers based on the fiscal year ended October 31, 2023 was 1.34%. The net operating expense ratio net of fee waivers based on the fiscal year ended October 31, 2023 was 1.19%. The net operating expenses net of fee waivers and excluding interest expense based on the fiscal year ended October 31, 2023 was 1.19%.
8 2023 Annual Report

 

abrdn Global Dynamic Dividend Fund 
Portfolio Summary (as a percentage of net assets) (unaudited)
As of October 31, 2023

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 18.4%
Financials 17.0%
Health Care 12.8%
Industrials 9.6%
Consumer Discretionary 8.3%
Consumer Staples 8.0%
Utilities 6.0%
Materials 5.7%
Communication Services 5.4%
Energy 4.8%
Real Estate 2.9%
Short-Term Investment 0.6%
Assets in Excess of Other Liabilities 0.5%
  100.0%
The following chart summarizes the composition of the Fund’s portfolio by geographic classification.
Countries-AGD  
United States 61.5%
United Kingdom 6.8%
France 6.2%
Netherlands 4.3%
Germany 2.5%
China 2.2%
Other, less than 2% each 15.4%
Short-Term Investment 0.6%
Assets in Excess of Other Liabilities 0.5%
  100.0%
The following were the Fund’s top ten holdings as of October 31, 2023 :
Top Ten Holdings-AGD  
Apple, Inc. 3.7%
Microsoft Corp. 3.5%
Alphabet, Inc. 1.8%
Broadcom, Inc. 1.8%
Engie SA 1.7%
Newmont Corp., CDI 1.7%
TJX Cos., Inc. (The) 1.6%
BE Semiconductor Industries NV 1.6%
Enbridge, Inc. 1.5%
Eli Lilly & Co. 1.5%
2023 Annual Report 9

 

Portfolio of Investments  
As of October 31, 2023
abrdn Global Dynamic Dividend Fund  

  Shares or
Principal
Amount
Value
COMMON STOCKS—97.7%  
AUSTRALIA—0.8%
Materials—0.8%      
Rio Tinto PLC, ADR      31,500 $   2,026,710
BRAZIL—1.8%
Industrials—0.9%      
CCR SA     969,000   2,302,498
Materials—0.9%      
Vale SA, ADR     152,000   2,083,920
Total Brazil   4,386,418
CANADA—1.5%
Energy—1.5%      
Enbridge, Inc.(a)     116,600   3,735,864
CHINA—2.2%
Communication Services—0.9%      
Tencent Holdings Ltd.      56,700   2,098,395
Financials—0.9%      
Ping An Insurance Group Co. of China Ltd., H Shares     435,700   2,210,078
Real Estate—0.4%      
China Vanke Co. Ltd., H Shares   1,165,300 1,090,203
Total China   5,398,676
DENMARK—1.4%
Financials—1.4%      
Tryg A/S   170,500 3,329,448
EGYPT—0.5%
Energy—0.5%      
Energean PLC   125,800 1,302,738
FINLAND—0.6%
Information Technology—0.6%      
Nokia OYJ   416,406 1,386,915
FRANCE—6.2%
Consumer Discretionary—0.9%      
LVMH Moet Hennessy Louis Vuitton SE   3,200 2,290,977
Consumer Staples—1.7%      
Danone SA   49,000 2,915,032
Pernod Ricard SA   6,600 1,172,004
      4,087,036
Energy—1.4%      
TotalEnergies SE, ADR(a)   50,900 3,389,940
Industrials—0.5%      
Teleperformance SE   11,800 1,357,492
Utilities—1.7%      
Engie SA   260,900 4,149,584
Total France   15,275,029
GERMANY—2.5%
Financials—1.2%      
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen   7,200 2,889,417
  Shares or
Principal
Amount
Value
Utilities—1.3%      
RWE AG      81,900 $   3,133,937
Total Germany   6,023,354
HONG KONG—1.0%
Financials—1.0%      
Hong Kong Exchanges & Clearing Ltd.      70,600   2,469,775
JAPAN—1.8%
Financials—1.1%      
Mitsubishi UFJ Financial Group, Inc.     319,000   2,676,138
Real Estate—0.7%      
GLP J-REIT       2,000   1,791,314
Total Japan   4,467,452
NETHERLANDS—4.3%
Consumer Staples—0.5%      
Heineken NV      13,300   1,194,918
Financials—1.1%      
ING Groep NV, Series N   209,500 2,685,900
Information Technology—2.7%      
ASML Holding NV   4,600 2,765,154
BE Semiconductor Industries NV   39,100 4,039,018
      6,804,172
Total Netherlands   10,684,990
NORWAY—0.9%
Communication Services—0.9%      
Telenor ASA   224,700 2,296,972
SINGAPORE—1.3%
Financials—1.3%      
Oversea-Chinese Banking Corp. Ltd.   342,000 3,170,720
SPAIN—0.9%
Consumer Discretionary—0.9%      
Amadeus IT Group SA   36,660 2,092,289
SWEDEN—0.6%
Industrials—0.6%      
Atlas Copco AB, A Shares   105,900 1,371,301
TAIWAN—1.1%
Information Technology—1.1%      
Taiwan Semiconductor Manufacturing Co. Ltd., ADR   170,200 2,779,793
UNITED KINGDOM—6.8%
Communication Services—0.8%      
Vodafone Group PLC, ADR(a)   208,700 1,928,388
Consumer Discretionary—1.1%      
Taylor Wimpey PLC   2,071,592 2,797,980
Energy—0.2%      
Capricorn Energy PLC   226,942 430,883
Financials—1.4%      
Allfunds Group PLC   177,100 906,420
London Stock Exchange Group PLC   25,700 2,593,002
      3,499,422
 
See accompanying Notes to Financial Statements.
10 2023 Annual Report

 

Portfolio of Investments   (continued)
As of October 31, 2023
abrdn Global Dynamic Dividend Fund  

  Shares or
Principal
Amount
Value
COMMON STOCKS (continued)  
UNITED KINGDOM (continued)
Health Care—2.3%      
AstraZeneca PLC, ADR(a)      49,900 $   3,155,177
Dechra Pharmaceuticals PLC      54,234   2,513,690
      5,668,867
Industrials—1.0%      
Melrose Industries PLC     433,033   2,465,591
Total United Kingdom   16,791,131
UNITED STATES—61.5%
Communication Services—2.8%      
Alphabet, Inc., Class C(a)(b)      36,000   4,510,800
TKO Group Holdings, Inc.      30,271   2,481,617
      6,992,417
Consumer Discretionary—5.4%      
Aptiv PLC(a)(b)      24,400   2,127,680
Genuine Parts Co.(a)      18,600   2,396,796
Las Vegas Sands Corp.      35,400   1,680,084
Lowe's Cos., Inc.(a)   16,100 3,068,177
TJX Cos., Inc. (The)(a)   46,100 4,060,027
      13,332,764
Consumer Staples—5.8%      
Coca-Cola Co. (The)(a)   58,700 3,315,963
Keurig Dr Pepper, Inc.   81,100 2,459,763
Mondelez International, Inc., Class A(a)   50,300 3,330,363
Nestle SA   25,210 2,718,614
Target Corp.(a)   21,700 2,404,143
      14,228,846
Energy—1.2%      
Williams Cos., Inc. (The)(a)   85,585 2,944,124
Financials—7.6%      
Bank of America Corp.(a)   86,500 2,278,410
Blackstone, Inc., Class A   27,354 2,526,142
CME Group, Inc.   13,300 2,839,018
Fidelity National Information Services, Inc.   43,339 2,128,378
Goldman Sachs Group, Inc. (The)   9,500 2,884,295
Huntington Bancshares, Inc.   235,700 2,274,505
JPMorgan Chase & Co.   20,900 2,906,354
MetLife, Inc.   16,000 960,160
      18,797,262
Health Care—10.5%      
AbbVie, Inc.(a)   24,212 3,418,250
Baxter International, Inc.   49,700 1,611,771
Bristol-Myers Squibb Co.(a)   42,408 2,185,284
CVS Health Corp.   37,100 2,560,271
Eli Lilly & Co.(a)   6,600 3,655,938
Medtronic PLC(a)   29,000 2,046,240
Merck & Co., Inc.   23,985 2,463,259
Roche Holding AG   8,210 2,115,796
Sanofi SA   30,900 2,805,913
UnitedHealth Group, Inc.(a)   5,592 2,994,852
      25,857,574
Industrials—6.6%      
FedEx Corp.(a)   13,500 3,241,350
  Shares or
Principal
Amount
Value
Ferrovial SE     103,000 $   3,099,892
Norfolk Southern Corp.      11,200   2,136,848
Schneider Electric SE      20,000   3,077,146
Stanley Black & Decker, Inc.      22,800   1,939,140
Waste Management, Inc.      16,500   2,711,445
      16,205,821
Information Technology—12.8%      
Amdocs Ltd.      36,500   2,925,840
Analog Devices, Inc.      18,100   2,847,673
Apple, Inc.(a)      54,000   9,221,580
Broadcom, Inc.(a)       5,326   4,481,136
Cisco Systems, Inc.      63,600   3,315,468
Microsoft Corp.(a)      25,626   8,664,407
      31,456,104
Materials—4.0%      
Air Products & Chemicals, Inc.       7,900   2,231,276
Linde PLC   9,200 3,514,950
Newmont Corp., CDI(b)   107,160 4,106,487
      9,852,713
Real Estate—1.8%      
American Tower Corp., REIT   11,500 2,049,185
Gaming and Leisure Properties, Inc., REIT(a)   53,991 2,450,652
      4,499,837
Utilities—3.0%      
CMS Energy Corp.(a)   43,800 2,380,092
FirstEnergy Corp.   59,600 2,121,760
NextEra Energy Partners LP   22,800 617,196
NextEra Energy, Inc.(a)   37,100 2,162,930
      7,281,978
Total United States   151,449,440
Total Common Stocks   240,439,015
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) $   500,000 500
Total Corporate Bonds   500
PREFERRED STOCKS—1.2%  
SOUTH KOREA—1.2%
Information Technology—1.2%      
Samsung Electronics Co. Ltd.   75,400 3,010,323
Total Preferred Stocks   3,010,323
SHORT-TERM INVESTMENT—0.6%  
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.30%(d)   1,616,230 1,616,230
Total Short-Term Investment   1,616,230
Total Investments
(Cost $236,488,786)(e)—99.5%
245,066,068
Other Assets in Excess of Liabilities—0.5% 1,152,300
Net Assets—100.0% $246,218,368
    
 
See Notes to Financial Statements.
2023 Annual Report 11

 

Portfolio of Investments   (concluded)
As of October 31, 2023
abrdn Global Dynamic Dividend Fund  

(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 October 31, 2023.
(e) 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
 
At October 31, 2023, 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          
01/19/2024 Royal Bank of Canada USD 20,666,921 EUR 19,400,000 $20,604,104 $62,817
 
See Notes to Financial Statements.
12 2023 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 1-year, 3-year, 5-year and 10-year periods ended October 31, 2023.
AOD 1 Year 3 Years 5 Years 10 Years
Net Asset Value (NAV) 8.01% 7.21% 6.56% 6.98%
Market Price 5.41% 7.91% 6.54% 6.99%
MSCI AC World Index (Net DTR) 10.50% 6.68% 7.47% 6.81%
Performance of a $10,000 Investment for AOD (as of October 31, 2023)
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 October 31, 2023. 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 net operating expense ratio excluding fee waivers based on the fiscal year ended October 31, 2023 was 1.36%. The net operating expense ratio net of fee waivers based on the fiscal year ended October 31, 2023 was 1.27%. The net operating expenses net of fee waivers and excluding interest expense based on the fiscal year ended October 31, 2023 was 1.15%.
2023 Annual Report 13

 

abrdn Total Dynamic Dividend Fund 
Portfolio Summary (as a percentage of net assets) (unaudited)
As of October 31, 2023

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 19.6%
Financials 16.8%
Health Care 12.6%
Industrials 10.1%
Consumer Discretionary 9.0%
Consumer Staples 8.7%
Communication Services 6.4%
Utilities 6.3%
Materials 5.9%
Energy 4.8%
Real Estate 3.3%
Short-Term Investment 0.7%
Liabilities in Excess of Other Assets (4.2%)
  100.0%
The following chart summarizes the composition of the Fund’s portfolio by geographic classification.
Countries-AOD  
United States 64.8%
France 7.1%
United Kingdom 5.6%
Netherlands 4.6%
Germany 2.7%
China 2.3%
Other, less than 2% each 16.4%
Short-Term Investment 0.7%
Liabilities in Excess of Other Assets (4.2%)
  100.0%
The following were the Fund’s top ten holdings as of October 31, 2023 :
Top Ten Holdings-AOD  
Apple, Inc. 4.1%
Microsoft Corp. 3.6%
Broadcom, Inc. 1.9%
Alphabet, Inc. 1.9%
TotalEnergies SE, ADR 1.8%
BE Semiconductor Industries NV 1.8%
Newmont Corp., CDI 1.7%
TJX Cos., Inc. (The) 1.7%
Engie SA 1.7%
Eli Lilly & Co. 1.7%
14 2023 Annual Report

 

Portfolio of Investments  
As of October 31, 2023
abrdn Total Dynamic Dividend Fund  

  Shares Value
COMMON STOCKS—102.3%  
AUSTRALIA—0.8%
Materials—0.8%      
Rio Tinto PLC, ADR     118,000 $   7,592,120
BRAZIL—1.9%
Industrials—1.0%      
CCR SA   3,650,100   8,673,218
Materials—0.9%      
Vale SA, ADR     585,500   8,027,205
Total Brazil   16,700,423
CANADA—1.6%
Energy—1.6%      
Enbridge, Inc.     444,600  14,244,984
CHINA—2.3%
Communication Services—0.9%      
Tencent Holdings Ltd.     220,200   8,149,323
Financials—0.9%      
Ping An Insurance Group Co. of China Ltd., H Shares   1,652,900   8,384,294
Real Estate—0.5%      
China Vanke Co. Ltd., H Shares   4,490,800 4,201,394
Total China   20,735,011
DENMARK—1.4%
Financials—1.4%      
Tryg A/S   634,900 12,398,045
FINLAND—0.6%
Information Technology—0.6%      
Nokia OYJ   1,531,806 5,101,957
FRANCE—7.1%
Consumer Discretionary—1.1%      
LVMH Moet Hennessy Louis Vuitton SE   13,550 9,700,856
Consumer Staples—1.9%      
Danone SA   203,300 12,094,410
Pernod Ricard SA   30,500 5,416,078
      17,510,488
Energy—1.8%      
TotalEnergies SE, ADR(a)   240,300 16,003,980
Industrials—0.6%      
Teleperformance SE   44,600 5,130,858
Utilities—1.7%      
Engie SA   976,200 15,526,348
Total France   63,872,530
GERMANY—2.7%
Financials—1.2%      
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen   27,800 11,156,361
Utilities—1.5%      
RWE AG   343,400 13,140,340
Total Germany   24,296,701
HONG KONG—1.0%
Financials—1.0%      
Hong Kong Exchanges & Clearing Ltd.   266,500 9,322,874
  Shares Value
JAPAN—1.9%
Financials—1.1%      
Mitsubishi UFJ Financial Group, Inc.   1,232,700 $  10,341,302
Real Estate—0.8%      
GLP J-REIT       7,600   6,806,993
Total Japan   17,148,295
NETHERLANDS—4.6%
Consumer Staples—0.6%      
Heineken NV      62,500   5,615,216
Financials—1.1%      
ING Groep NV, Series N     793,700  10,175,651
Information Technology—2.9%      
ASML Holding NV      16,800  10,098,823
BE Semiconductor Industries NV     152,800  15,784,194
      25,883,017
Total Netherlands   41,673,884
NORWAY—1.0%
Communication Services—1.0%      
Telenor ASA   890,530 9,103,347
SINGAPORE—1.3%
Financials—1.3%      
Oversea-Chinese Banking Corp. Ltd.   1,298,471 12,038,269
SPAIN—1.7%
Communication Services—0.8%      
Cellnex Telecom SA(b)(c)   241,800 7,107,975
Consumer Discretionary—0.9%      
Amadeus IT Group SA   138,600 7,910,292
Total Spain   15,018,267
SWEDEN—0.6%
Industrials—0.6%      
Atlas Copco AB, A Shares   404,400 5,236,583
TAIWAN—1.4%
Information Technology—1.4%      
Taiwan Semiconductor Manufacturing Co. Ltd., ADR   752,000 12,282,045
UNITED KINGDOM—5.6%
Communication Services—0.8%      
Vodafone Group PLC, ADR   777,900 7,187,796
Consumer Discretionary—1.2%      
Taylor Wimpey PLC   7,944,607 10,730,324
Energy—0.1%      
Capricorn Energy PLC   655,111 1,243,825
Financials—1.1%      
London Stock Exchange Group PLC   98,400 9,928,071
Health Care—1.3%      
AstraZeneca PLC, ADR   192,300 12,159,129
Industrials—1.1%      
Melrose Industries PLC   1,664,770 9,478,821
Total United Kingdom   50,727,966
 
See accompanying Notes to Financial Statements.
2023 Annual Report 15

 

Portfolio of Investments   (continued)
As of October 31, 2023
abrdn Total Dynamic Dividend Fund  

  Shares Value
COMMON STOCKS (continued)  
UNITED STATES—64.8%
Communication Services—2.9%      
Alphabet, Inc., Class C(a)(c)     136,200 $  17,065,860
TKO Group Holdings, Inc.     114,866   9,416,715
      26,482,575
Consumer Discretionary—5.8%      
Aptiv PLC(a)(c)      91,100   7,943,920
Genuine Parts Co.      72,500   9,342,350
Las Vegas Sands Corp.     138,600   6,577,956
Lowe's Cos., Inc.(a)      68,000  12,958,760
TJX Cos., Inc. (The)(a)     177,700  15,650,039
      52,473,025
Consumer Staples—6.2%      
Coca-Cola Co. (The)     239,400  13,523,706
Keurig Dr Pepper, Inc.     303,500   9,205,155
Mondelez International, Inc., Class A(a)     190,200  12,593,142
Nestle SA     100,300  10,816,224
Target Corp.(a)   85,500 9,472,545
      55,610,772
Energy—1.3%      
Williams Cos., Inc. (The)   326,200 11,221,280
Financials—7.7%      
Bank of America Corp.(a)   306,700 8,078,478
Blackstone, Inc., Class A   110,000 10,158,500
CME Group, Inc.   50,700 10,822,422
Fidelity National Information Services, Inc.   148,900 7,312,479
Goldman Sachs Group, Inc. (The)   34,800 10,565,628
Huntington Bancshares, Inc.(a)   766,300 7,394,795
JPMorgan Chase & Co.   77,300 10,749,338
MetLife, Inc.   61,900 3,714,619
      68,796,259
Health Care—11.3%      
AbbVie, Inc.   91,000 12,847,380
Baxter International, Inc.   157,300 5,101,239
Bristol-Myers Squibb Co.(a)   162,900 8,394,237
CVS Health Corp.   139,300 9,613,093
Eli Lilly & Co.   27,100 15,011,503
Medtronic PLC(a)   118,900 8,389,584
Merck & Co., Inc.   89,100 9,150,570
Roche Holding AG   42,200 10,875,344
Sanofi SA   118,593 10,768,984
UnitedHealth Group, Inc.(a)   21,900 11,728,764
      101,880,698
Industrials—6.8%      
FedEx Corp.(a)   51,800 12,437,180
Ferrovial SE   384,314 11,566,330
Norfolk Southern Corp.(a)   39,400 7,517,126
Schneider Electric SE   80,800 12,431,670
Stanley Black & Decker, Inc.   87,400 7,433,370
Waste Management, Inc.   62,100 10,204,893
      61,590,569
  Shares Value
Information Technology—13.5%      
Amdocs Ltd.     142,100 $  11,390,736
Analog Devices, Inc.      68,600  10,792,838
Apple, Inc.(a)     213,600  36,476,472
Broadcom, Inc.(a)      20,800  17,500,496
Cisco Systems, Inc.(a)     245,300  12,787,489
Microsoft Corp.(a)      97,200  32,864,292
      121,812,323
Materials—4.2%      
Air Products & Chemicals, Inc.      30,700   8,670,908
Linde PLC      35,700  13,639,534
Newmont Corp., CDI(c)     410,840  15,743,832
      38,054,274
Real Estate—2.0%      
American Tower Corp., REIT      46,400   8,268,016
Gaming and Leisure Properties, Inc., REIT     206,800   9,386,652
      17,654,668
Utilities—3.1%      
CMS Energy Corp.(a)   156,000 8,477,040
FirstEnergy Corp.(a)   238,000 8,472,800
NextEra Energy Partners LP   84,900 2,298,243
NextEra Energy, Inc.(a)   146,000 8,511,800
      27,759,883
Total United States   583,336,326
Total Common Stocks   920,829,627
PREFERRED STOCKS—1.2%  
SOUTH KOREA—1.2%
Information Technology—1.2%      
Samsung Electronics Co. Ltd.   288,800 11,530,256
Total Preferred Stocks   11,530,256
SHORT-TERM INVESTMENT—0.7%  
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.30%(d)   6,062,282 6,062,282
Total Short-Term Investment   6,062,282
Total Investments
(Cost $825,158,467)(e)—104.2%
938,422,165
Liabilities in Excess of Other Assets—(4.2%) (38,157,740)
Net Assets—100.0% $900,264,425
    
(a) All or a portion of the security has been designated as collateral for the line of credit.
(b) Denotes a security issued under Regulation S or Rule 144A.
(c) Non-income producing security.
(d) Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of October 31, 2023.
(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 Notes to Financial Statements.
16 2023 Annual Report

 

Portfolio of Investments   (concluded)
As of October 31, 2023
abrdn Total Dynamic Dividend Fund  

At October 31, 2023, 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          
01/19/2024 Royal Bank of Canada USD 78,301,417 EUR 73,500,000 $78,061,941 $239,476
 
See Notes to Financial Statements.
2023 Annual Report 17

 

Statement of Assets and Liabilities 
October 31, 2023

Assets abrdn
Global Dynamic
Dividend Fund
abrdn
Total  Dynamic
Dividend  Fund
Investments, at value $ 243,449,838 $ 932,359,883
Short-term investments, at value  1,616,230  6,062,282
Cash 211,645 746,526
Receivable for investments sold 776,454 3,004,170
Interest and dividends receivable 1,191,150 4,477,122
Unrealized appreciation on forward foreign currency exchange contracts 62,817 239,476
Tax reclaim receivable 1,023,352 4,417,690
Prepaid expenses 4,805 17,590
Other assets 42,701
Total assets 248,378,992 951,324,739
Liabilities    
Line of credit payable (Note 7) 1,536,822 49,051,955
Due to custodian 225,682 862,565
Investment management fees payable (Note 3) 162,743 659,399
Administration fees payable (Note 3) 16,954 62,004
Investor relations fees payable (Note 3) 11,862 20,768
Interest payable on line of credit 2,280 207,460
Other accrued expenses 204,281 196,163
Total liabilities 2,160,624 51,060,314
 
Net Assets $246,218,368 $900,264,425
Cost:    
Investments 234,872,556 819,096,185
Short-Term Investments 1,616,230 6,062,282
Composition of Net Assets    
Paid-in capital in excess of par  270,690,204  990,459,099
Distributable accumulated loss  (24,471,836)  (90,194,674)
Net Assets $246,218,368 $900,264,425
Net asset value per share $9.90 $8.54
Shares issued and outstanding 24,865,081 105,430,999
 
Amounts listed as “–” are $0 or round to $0.
See Notes to Financial Statements.
18 2023 Annual Report

 

Statement of Operations 
For the Year Ended October 31, 2023

  abrdn
Global Dynamic
Dividend Fund
abrdn
Total  Dynamic
Dividend  Fund
Net Investment Income    
Investment Income:    
Dividends $ 19,652,286 $ 81,099,979
Interest and other income  32,335  8,745
Foreign taxes withheld  (1,744,510)  (7,135,892)
Total investment income 17,940,111 73,972,832
Expenses:    
Investment management fee (Note 3)  2,197,909  9,980,478
Administration fee (Note 3)  175,833  782,162
Reports to shareholders and proxy solicitation  95,608  187,540
Investor relations fees and expenses (Note 3)  77,734  251,396
Custodian’s fees and expenses  72,057  86,635
Trustees' fees and expenses  62,254  124,067
Legal fees and expenses  61,276  255,148
Independent auditors’ fees and expenses  46,110  77,610
Transfer agent’s fees and expenses  17,185  16,985
Miscellaneous  118,022  282,093
Total operating expenses, excluding interest expense 2,923,988 12,044,114
Interest expense (Note 7)  12,465  1,254,874
Total operating expenses before reimbursed/waived expenses 2,936,453 13,298,988
Expenses waived (Note 3) (317,076) (840,966)
Net expenses 2,619,377 12,458,022
 
Net Investment Income 15,320,734 61,514,810
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions:    
Net realized gain/(loss) from:    
Investment transactions (7,455,131) (27,107,002)
Forward foreign currency exchange contracts 201,771 (537,447)
Foreign currency transactions (256,914) (406,718)
  (7,510,274) (28,051,167)
Net change in unrealized appreciation/(depreciation) on:    
Investments (968,444) 30,665,131
Forward foreign currency exchange contracts 102,221 595,365
Foreign currency translation 10,400 248,782
  (855,823) 31,509,278
Net realized and unrealized gain (loss) from investments, forward foreign currency exchange contracts and foreign currencies (8,366,097) 3,458,111
Change in Net Assets Resulting from Operations $6,954,637 $64,972,921
 
Amounts listed as “–” are $0 or round to $0.
See Notes to Financial Statements.
2023 Annual Report 19

 

Statements of Changes in Net Assets 

  abrdn Global Dynamic Dividend Fund abrdn Total Dynamic Dividend Fund
  For the
Year Ended
October 31, 2023
For the
Year Ended
October 31, 2022
For the
Year Ended
October 31, 2023
For the
Year Ended
October 31, 2022
Increase/(Decrease) in Net Assets:        
Operations:        
Net investment income $15,320,734 $8,590,195 $61,514,810 $66,785,656
Net realized gain from investments, forward foreign currency exchange contracts and foreign currency transactions (7,510,274) (1,672,175) (28,051,167) (14,762,307)
Net change in unrealized appreciation on investments, forward foreign currency exchange contracts and foreign currency translation (855,823) (33,562,796) 31,509,278 (228,759,665)
Net increase in net assets resulting from operations 6,954,637 (26,644,776) 64,972,921 (176,736,316)
Distributions to Shareholders From:        
Distributable earnings (15,666,124) (9,164,069) (63,774,379) (72,747,390)
Return of capital (526,610) (624,605) (8,973,011)
Net increase in net assets from distributions (16,192,734) (9,788,674) (72,747,390) (72,747,390)
Proceeds from shares issued from the reorganization resulting in the addition of 12,315,499, 0, 0 and 0 shares of common stock, respectively (Note 11) 129,362,047
Change in net assets 120,123,950 (36,433,450) (7,774,469) (249,483,706)
Net Assets:        
Beginning of year 126,094,418 162,527,868 908,038,894 1,157,522,600
End of year $246,218,368 $126,094,418 $900,264,425 $908,038,894
 
Amounts listed as “–” are $0 or round to $0.
See Notes to Financial Statements.
20 2023 Annual Report

 

Financial Highlights 

abrdn Global Dynamic Dividend Fund
  For the Fiscal Years Ended October 31,
  2023
2022
2021
2020
2019
PER SHARE OPERATING PERFORMANCE(a):          
Net asset value, beginning of year $10.05 $12.95 $10.16 $11.14 $10.80
Net investment income 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
(0.12) (2.80) 2.75 (0.90) 0.36
Total from investment operations 0.63 (2.12) 3.57 (0.20) 1.12
Distributions to common shareholders from:          
Net investment income (0.75) (0.73) (0.78) (0.76) (0.78)
Return of capital (0.03) (0.05) (0.02)
Total distributions (0.78) (0.78) (0.78) (0.78) (0.78)
Net asset value, end of year $9.90 $10.05 $12.95 $10.16 $11.14
Market price, end of year $8.40 $8.92 $12.01 $8.58 $9.78
Total Investment Return Based on(b):          
Market price 2.29% (19.88%) 49.84% (4.43%) 14.71%
Net asset value 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 year (000 omitted) $246,218 $126,094 $162,528 $127,512 $139,776
Average net assets applicable to common shareholders (000 omitted) $219,791 $146,601 $157,694 $132,667 $134,835
Net operating expenses, net of fee waivers 1.19% 1.18% 1.18% 1.18% 1.21%
Net operating expenses, excluding fee waivers 1.34% 1.37% 1.31% 1.36% 1.34%
Net operating expenses, net of fee waivers and
excluding interest expense
1.19% 1.16% 1.17% 1.17% 1.16%
Net Investment income 6.97% 5.86% 6.56% 6.59% 7.06%
Portfolio turnover 78%(c) 81% 71% 105% 119%
Line of credit payable outstanding (000 omitted) $1,537 $– $311 $– $211
Asset coverage ratio on revolving credit facility at year end(d) 16,121% 52,338% 66,335%
Asset coverage per $1,000 on line of credit payable at year end $161,213 $– $523,384 $– $663,350
    
(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 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. 
(d) 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.
2023 Annual Report 21

 

Financial Highlights 

abrdn Total Dynamic Dividend Fund
  For the Fiscal Years Ended October 31,
  2023
2022
2021
2020
2019
PER SHARE OPERATING PERFORMANCE(a):          
Net asset value, beginning of year $8.61 $10.98 $8.76 $9.56 $9.33
Net investment income 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 0.04 (2.31) 2.25 (0.74) 0.27
Total from investment operations 0.62 (1.68) 2.91 (0.11) 0.91
Distributions to common shareholders from:          
Net investment income (0.60) (0.69) (0.69) (0.67) (0.65)
Return of capital (0.09) (0.02) (0.04)
Total distributions (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 year $8.54 $8.61 $10.98 $8.76 $9.56
Market price, end of year $7.26 $7.50 $10.05 $7.31 $8.44
Total Investment Return Based on(b):          
Market price 5.41% (19.25%) 47.64% (5.47%) 15.55%
Net asset value 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 year (000 omitted) $900,264 $908,039 $1,157,523 $924,011 $1,007,850
Average net assets applicable to common shareholders (000 omitted) $977,703 $1,049,849 $1,129,413 $964,667 $981,093
Net operating expenses, net of fee waivers 1.27% 1.16% 1.16% 1.15% 1.22%
Net operating expenses, excluding fee waivers 1.36% 1.21% 1.20% 1.18% 1.24%
Net operating expenses, net of fee waivers and
excluding interest expense
1.15% 1.14% 1.14% 1.14% 1.18%
Net Investment income 6.29% 6.36% 6.14% 6.93% 6.94%
Portfolio turnover 79% 83% 72% 115% 135%
Line of credit payable outstanding (000 omitted) $49,052 $12,250 $4,092 $– $–
Asset coverage ratio on line of credit payable at year end(d) 1,935% 7,512% 28,385%
Asset coverage per $1,000 on line of credit payable at year end $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) 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.
22 2023 Annual Report

 

Notes to Financial Statements 
October 31, 2023

1.  Organization
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.
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, 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
 
2023 Annual Report 23

 

Notes to Financial Statements  (continued)
October 31, 2023

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.
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.
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 generally valued according to the following procedures. Exchange traded derivatives are generally Level 1
investments and over-the-counter and centrally cleared derivatives are generally Level 2 investments. Forward currency exchange contracts are generally valued based on the current spot exchange rates and the forward exchange rate points (ex. 1-month, 3-month) that are obtained from an approved pricing agent. Based on the actual settlement dates of the forward contracts held, an interpolated value of the forward points is combined with the spot exchange rate to derive the valuation. Futures contracts are generally valued at the most recent settlement price as of NAV determination. Swap agreements are generally valued by an approved pricing agent based on the terms of the swap agreement (including future cash flows). Exchange-traded options are valued at the last quoted sales price. In the absence of a sales price, options are valued at the mean of the bid/ask price quoted at the close on the exchange on which the options trade. 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 a 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).
 
24 2023 Annual Report

 

Notes to Financial Statements  (continued)
October 31, 2023

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 October 31, 2023 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 $154,042,364 $86,396,651 $$240,439,015
Corporate Bonds 500 500
Preferred Stocks 3,010,323 3,010,323
Short-Term Investment 1,616,230 1,616,230
Total Investments $155,658,594 $89,407,474 $– $245,066,068
Other Financial Instruments      
Foreign Currency Exchange Contracts $$62,817 $$62,817
Total Investment Assets $155,658,594 $89,470,291 $– $245,128,885
Amounts listed as “–” are $0 or round to $0.
  abrdn Total Dynamic Dividend Fund
Investments, at Value Level 1 – Quoted
Prices
Level 2 – Other Significant
Observable Inputs
Level 3 – Significant
Unobservable Inputs
Total
abrdn Total Dynamic Dividend Fund
Assets    
Investments in Securities      
Common Stocks $587,126,672 $333,702,955 $$920,829,627
Preferred Stocks 11,530,256 11,530,256
Short-Term Investment 6,062,282 6,062,282
Total Investments $593,188,954 $345,233,211 $– $938,422,165
Other Financial Instruments      
Foreign Currency Exchange Contracts $$239,476 $$239,476
Total Investment Assets $593,188,954 $345,472,687 $– $938,661,641
Amounts listed as “–” are $0 or round to $0.
For the fiscal year ended October 31, 2023, there were no significant changes to the fair valuation methodologies.
2023 Annual Report 25

 

Notes to Financial Statements  (continued)
October 31, 2023

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 fiscal year ended October 31, 2023, 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 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
 
26 2023 Annual Report

 

Notes to Financial Statements  (continued)
October 31, 2023

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 October 31, 2023:
  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 $$62,817 $$$$$62,817
Total $– $62,817 $– $– $– $–