abrdn Income Credit Strategies Fund cuts monthly distribution by 29%, citing income coverage challenges.

abrdn Income Credit Strategies Fund (ACP) reduced its monthly distribution by 29%, from $0.0775 to $0.055 per share, effective September 11. The fund expects to maintain this lower payout rate for at least 12 months. Despite the cut, net investment income covers only about 68% of the distribution, an improvement from 48% previously, indicating ongoing income challenges. The fund's portfolio mainly consists of B-rated global high-yield credit, and its long-term NAV returns trail its payout, which may affect future income stability and investor returns.

Following ACP's announcement of a 29% distribution cut, the fund's shares are trading at USD 4.39 on Pluang as of Oct 06, 2026 00:22 WIB, showing a 1.57% decline in one day. The fund maintains a dividend yield of 14.8%, with a market capitalization of $577.17 million. Investors typically hold ACP shares for about 121 days on the platform, reflecting ongoing interest despite income challenges.