PHILADELPHIA, Feb. 7, 2020 /PRNewswire/ — Aberdeen Global Premier Properties Fund (NYSE: AWP) today Board (the “Board has approved changes to the Fund’s fundamental investment objectives and fundamental investment restriction related to borrowing, each of which are subject to shareholder approval. If approved by shareholders, it is currently expected that the changes to the Fund’s fundamental investment objectives and fundamental investment restriction related to borrowing will be implemented in the second quarter of 2020. The Fund also today announced that its Board has approved changes to certain principal investment strategies, which will take effect immediately.
Aberdeen Asset Management Inc. At Aberdeen, asset management is our business. We only manage assets for clients, allowing us to focus solely on their needs and deliver independent, objective investment advice. We know global markets from the local level upwards, drawing on more than 1,900 staff, across 32 offices in 23 countries. Investment teams are based in the markets or regions where they invest, delivering local perspective in a global investment environment. (PRNewsFoto/Aberdeen Asset Management Inc.)
These changes are intended to provide the portfolio managers with additional flexibility to meet the Fund’s investment objectives, but there is no expectation that material changes in the Fund’s portfolio composition or investment approach will result. Aberdeen Asset Managers Limited (“AAML”), the Fund’s investment adviser, and the Board each believe that the changes to the Fund’s principal investment strategies and the proposed changes to the Fund’s investment objectives and investment restriction related to borrowing are in the best interests of the Fund’s shareholders.
Investment Objectives
The current and proposed versions of the Fund’s investment objectives are as follows:
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Current Investment Objectives: |
Proposed Investment Objectives: |
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The Fund’s primary investment objective is |
The Fund seeks high current income
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Fundamental Investment Restriction Related to Borrowing
Currently, the Fund is subject to a fundamental investment restriction that only permits borrowing for investment purposes, commonly referred to as leverage, in an amount of no more than 10% of the Fund’s managed assets. Under the proposed fundamental investment restriction related to borrowing, the Fund would be permitted to borrow for investment purposes as may be permitted by the Investment Company Act of 1940, or any rule, order or interpretation thereunder. This would allow the Fund to borrow for investment purposes in an amount up to 33⅓% of the Fund’s total assets.
Principal Investment Strategies
In addition, effective immediately, the “Dynamic Dividend Strategy” will be eliminated from the Fund’s principal investment strategies. The “Dynamic Dividend Strategy” involves the Fund selling a stock on, or shortly after, the stock’s ex-dividend date and using the sale proceeds to purchase one or more other stocks that are expected to pay dividends before the next dividend payment on the stock being sold. The Fund’s portfolio management team employs a top down and bottom up approach to individual securities selection, as well as country allocation, and seeks to identify companies globally that the team believes can provide attractive current income with the potential for capital appreciation through the different phases of the real estate cycle. The portfolio management team’s investment process is designed to identify listed real estate investment opportunities with attractive relative valuations based on net asset value (NAV) and earnings growth, along with dividend growth.
Additional Information
Additional information regarding the changes to the Fund’s investment objectives and fundamental investment restriction related to borrowing will be included in a proxy statement that will filed with the Securities and Exchange Commission and be mailed to shareholders. A special meeting of shareholders for the purpose of voting on such proposals is anticipated to be held in the second quarter of 2020.
