[LOGO]
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Aberdeen
Global Income
Fund, Inc.
[GRAPHIC OMITTED]
Invests primarily in global fixed-income securities
Quarterly Report
July 31, 2002
Letter to Shareholders
September 13, 2002
Dear Shareholder,
We present this Quarterly Report which covers the activities of Aberdeen Global
Income Fund, Inc. (formerly known as Aberdeen Commonwealth Income Fund, Inc.)
(the "Fund") for the quarter ended July 31, 2002. Included in this report is a
review of the Australian, Canadian, New Zealand, United Kingdom and selected
Asian economies and investment markets, together with an overview of the Fund's
investments prepared by Aberdeen Asset Managers (C.I.) Limited (the "Investment
Manager").
High Credit Quality: 81.2% of Securities Rated or Deemed Equivalent to AA/Aa or
better
The Fund's high credit quality has been maintained. Over 81.2% of assets are
rated AA/Aa or better, or are considered of equivalent quality by the Investment
Manager. An additional 10.6% is held in A rated securities.
Distributions
Distributions to common shareholders for the 12 months ended July 31, 2002
totaled 78 cents per share. Based on the share price of $9.75 on July 31, 2002,
the cash distribution rate over the 12 months then ended was 8.0%. 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 September 12, 2002 the Board of Directors declared a monthly distribution of
6 cents per share payable on October 11, 2002 to all shareholders of record as
of September 30, 2002.
The Board's 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. It is the Board's intention that the monthly
distribution of 6 cents per share be maintained for 12 months, having begun with
the February 2002 distribution payment. This policy is subject to regular review
at the Board's quarterly meetings, unless market conditions require an earlier
evaluation. The next review is scheduled to take place in December 2002.
Aberdeen Global Income Fund, Inc. 1
Letter to Shareholders (continued)
Net Asset Value Performance: 6.1% Per Annum Return Since Inception
The Fund's total return based on Net Asset Value ("NAV") was 7.1% over the
quarter ended July 31, 2002. Since inception, the Fund's total return based on
NAV has increased to 6.1% per annum to July 31, 2002.
Share Price Performance
The Fund's share price rose 9.8% over the quarter, from $8.88 on April 30, 2002
to $9.75 on July 31, 2002. The Fund's share price on July 31, 2002 represented a
discount of 4.2% to the NAV per share of $10.18 on that date. This represents a
narrowing of the discount to NAV of 8.3% on April 30, 2002.
Implementation of Global Investment Strategy
In March 1999 the Fund's shareholders approved amendments to the Fund's
principal investment objective, investment policies and investment restrictions
to enable the Fund to invest up to 35% of its total assets in Global Debt
Securities. The term "Global Debt Securities" includes securities of issuers
located in, or securities denominated in the currency of, countries other than
Australia, Canada, New Zealand or the United Kingdom. This strategy was proposed
to be implemented in two phases. The first phase involved the immediate
investment of up to 20% of the Fund's assets in Asian debt markets. On September
3, 2001 the Board of Directors authorized the Investment Manager, in its
discretion, to implement the second phase of the global investment strategy.
This allows the Fund to invest up to 35% of its total assets in Global Debt
Securities, with a view to enhancing yield.
Global Debt: 12.2% of Total Assets Invested in Global Debt Securities
As of July 31, 2002, 12.2% of the Fund's total assets were held in Global Debt
Securities. This included 7.9% in Asian debt securities. During the quarter
ended July 31, 2002, the Fund began to invest in regions other than Asia and as
at July 31, 2002, 2.2% of the Fund's total assets were invested in Eastern
Europe, 1.4% in Latin America and 0.7% in Western Europe. Although these Global
Debt Securities present attractive opportunities, the Fund's ability to increase
its investments in Global Debt Securities remains constrained by the potential
realization of foreign exchange losses.
2 Aberdeen Global Income Fund, Inc.
Letter to Shareholders (concluded)
For information about the Fund, including weekly updates of share price, NAV,
and details of recent distributions, contact Aberdeen Asset Management, Investor
Relations, by:
o calling toll free on 1-800-522-5465 or 1-212-968-8800 in the United
States,
o emailing to InvestorRelations@aberdeen-asset.com, or
o visiting the website at www.aberdeen-asset.us
For information about the Aberdeen group, visit the Aberdeen website at
www.aberdeen-asset.com
Yours sincerely,
/s/ Martin J. Gilbert
Martin J. Gilbert
Chairman
All amounts are U.S. dollars unless otherwise stated.
Aberdeen Global Income Fund, Inc. 3
Your Board's 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.
The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax
accounting rules, the amount of distributable income for each fiscal period
depends on the actual exchange rates during the entire year between the U.S.
dollar and the currencies in which Fund assets are denominated and on the
aggregate gains and losses realized by the Fund during the entire year.
Therefore the exact amount of distributable income for each fiscal year can only
be determined as at the end of the Fund's fiscal year, October 31. However,
under the U.S. Investment Company Act of 1940, the Fund is required to indicate
the source of each distribution to shareholders. The Fund estimates that
distributions for the fiscal year commencing November 1, 2001, including the
distribution paid on September 6, 2002, are comprised of 3% net investment
income and 97% return of paid in capital.
This estimated distribution composition may vary from month to month because it
may be materially impacted by future realized gains and losses on securities and
fluctuations in the value of the currencies in which Fund assets are
denominated.
In January 2003, a Form 1099 DIV will be sent to shareholders, which will state
the amount and composition of distributions and provide information with respect
to their appropriate tax treatment.
4 Aberdeen Global Income Fund, Inc.
Dividend Reinvestment and Cash Purchase Plan
We invite you to participate in the Fund's Dividend Reinvestment and Cash
Purchase Plan ("the Plan") which allows you to automatically reinvest your
distributions in shares of the Fund's common stock at favorable commission
rates. Distributions made under the Plan are taxable to the same extent as are
cash distributions. The Plan also enables you to make additional cash
investments in shares of at least $100 per month. Under this arrangement State
Street Bank & Trust Company (the "Plan Agent") will purchase shares for you on
the stock exchange or otherwise on the open market on or about the 15th of each
month, unless shares of the Fund are trading at a premium, in which case the
Fund will issue additional shares. As a participant in the Plan you will have
the convenience of:
Automatic reinvestment--the Plan Agent will automatically reinvest your
distributions, allowing you to gradually grow your holdings in the Fund;
Lower costs--shares purchased on your behalf under the Plan will be at reduced
brokerage rates. Brokerage on share purchases is currently 2 cents per share;
Convenience--the Plan Agent will hold your shares in non-certificated form and
will provide a detailed record of your holdings at the end of each distribution
period.
To request a brochure containing information on the Plan, together with an
authorization form, please contact the Plan Agent, State Street Bank & Trust
Company, P.O. Box 8200, Boston, MA 02266 or call toll free on 1-800-426-5523.
Aberdeen Global Income Fund, Inc. 5
Report of the Investment Manager
Share Price Performance
On July 31, 2002, the Fund's share price was $9.75, which represented a discount
of 4.2% to the NAV of $10.18. At the date of this report, the share price was
$10.12 representing a discount of 3.4% to the NAV of $10.48.
[A line graph depicting the Net Asset Value vs Share Price. The values are from
February 1992 through July 2002]
Feb-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96
Aberdeen Global
Income Fund NAV $13.89 $14.87 $12.62 $13.55 $14.22 $12.03 $11.91 $12.49 $13.12
Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00
Aberdeen Global
Income Fund NAV $13.20 $13.86 $14.08 $13.41 $12.57 $13.37 $12.42 $11.78 $10.99
Jan-01 Jul-01 Jan-02 Jul-02
Aberdeen Global
Income Fund NAV $10.71 $ 9.77 $ 9.47 $10.18
Feb-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96
Aberdeen Global
Income Fund
Share Price $15.00 $15.13 $12.38 $13.25 $13.00 $11.75 $10.25 $11.13 $11.88
Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00
Aberdeen Global
Income Fund
Share Price $11.50 $11.88 $12.31 $12.38 $10.94 $10.88 $10.75 $ 9.44 $ 9.25
Jan-01 Jul-01 Jan-02 Jul-02
Aberdeen Global
Income Fund
Share Price $ 9.46 $ 8.81 $ 8.74 $ 9.75
6 Aberdeen Global Income Fund, Inc.
Report of the Investment Manager (continued)
Distributions
The Board reduced the Fund's monthly distribution from 7.0 cents per share to
6.0 cents per share beginning with the distribution paid on February 8, 2002.
The Investment Manager continues its efforts to reallocate the portfolio toward
higher yielding Global Debt Securities, in addition to fixed income securities
denominated in the Commonwealth Currencies. Further, with the expectation for an
improving global economy in late 2002, the Investment Manager anticipates
improvement in the value of non-U.S. dollar currencies. Together, these factors
may enhance the Fund's net investment income and ability to realize capital
gains. There can, however, be no assurance that the Investment Manager's
expectations will be met.
Auction Market Preferred Stock (AMPS)
The Fund's $30 million of AMPS continued to be well bid at the weekly auctions.
The average interest rate paid was 1.94% over the quarter ended July 31, 2002,
compared with 1.75% for 30-day U.S. commercial paper over the same period. These
rates have remained broadly unchanged over the period as the U.S. Federal
Reserve has kept interest rates on hold. The rates paid to preferred
shareholders have decreased since July 31, 2002 to a level of 1.70% as of the
date of this report.
Over the past year, the impact of AMPS has been positive, as the key currencies
of the Fund--the Australian dollar, British pound, New Zealand
dollar--strengthened against the U.S. dollar over the period. Most Asian
currencies followed a similar trend, with only the Canadian dollar losing ground
over the period. In addition, the fact that U.S. interest rates have remained at
historic lows has meant that the differential between AMPS funding rates and the
yields at which the Fund invests remains positive. These effects have to some
extent been offset by capital losses as bond yields have risen in line with
signs of global recovery. Overall, the outlook over the medium-term for
investment markets and the portfolio in respect of these factors is considered
by the Investment Manager to be favorable and AMPS are therefore seen as having
the potential to enhance total shareholder returns in the medium term.
Aberdeen Global Income Fund, Inc. 7
Portfolio Composition
Geographic Composition
The table below shows the geographic composition of the Fund's total investments
as of July 31, 2002, compared with the previous quarter and twelve months:
TABLE 1: ABERDEEN GLOBAL INCOME FUND, INC.--
GEOGRAPHIC ASSET ALLOCATION
================================================================================
July 31, 2002 April 30, 2002 July 31, 2001
% % %
--------------------------------------------------------------------------------
Australia 20.0 23.3 22.1
Canada 17.9 21.5 34.7
New Zealand 11.0 10.4 4.8
United Kingdom 30.8 30.4 29.2
United States* 8.1 7.4 3.7
Asia 7.9 7.0 5.5
Eastern Europe 2.2 -- --
Latin America 1.4 -- --
Western Europe 0.7 -- --
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* It is a policy of the Investment Manager to maintain a portion of the
Fund's investments in U.S. short-term securities to cover distributions
and expenses.
Geographic Composition
[BAR CHART OMITTED]
8 Aberdeen Global Income Fund, Inc.
Portfolio Composition (continued)
Currency Composition
The table below shows the currency composition of the Fund's total investments
as of July 31, 2002, compared with the previous quarter and twelve months:
TABLE 2: ABERDEEN GLOBAL INCOME FUND, INC.--
CURRENCY ALLOCATION
================================================================================
July 31, 2002 April 30, 2002 July 31, 2001
% % %
--------------------------------------------------------------------------------
Australian Dollar 19.9 23.2 22.1
Canadian Dollar 17.6 21.2 34.7
New Zealand Dollar 12.2 11.7 4.8
British Pound 30.0 29.5 29.2
United States Dollar* 13.8 8.1 3.7
Asia Currencies 6.5 6.3 5.5
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* Includes Yankee bond investments.
Maturity Composition
As of July 31, 2002, the average maturity of the Fund's assets was 8.6 years,
compared with 7.4 years on April 30, 2002. The Fund's modified duration was 5.3
years for the quarter ended July 31, 2002, compared with 4.7 years on April 30,
2002. The table below shows the maturity composition of the Fund's investments
as of July 31, 2002:
TABLE 3: ABERDEEN GLOBAL INCOME FUND, INC.--
MATURITY ANALYSIS
================================================================================
Less than 1 year 1--5 years 5--10 years Over 10 years
% % % %
--------------------------------------------------------------------------------
Australia 24.0 21.5 40.9 13.6
Canada 31.4 16.9 10.9 40.8
New Zealand 14.2 56.9 13.1 15.8
United Kingdom 15.5 18.8 18.4 47.3
United States -- -- -- --
Asia 1.9 46.9 32.5 18.7
Eastern Europe -- 30.6 -- 69.4
Latin America -- -- 48.6 51.4
Western Europe -- 100.0 -- --
--------------------------------------------------------------------------------
Total Portfolio 19.0 25.9 21.9 33.2
================================================================================
Aberdeen Global Income Fund, Inc. 9
Portfolio Composition (continued)
Sectoral Composition
The table below shows the sectoral composition of the Fund's total investments
as of July 31, 2002:
TABLE 4: ABERDEEN GLOBAL INCOME FUND, INC.--
SECTORAL COMPOSITION
================================================================================
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
% % % % %
--------------------------------------------------------------------------------
Australia 6.2 8.4 1.7 2.0 1.7
Canada 7.8 4.5 -- 0.5 5.1
New Zealand 1.7 -- 0.4 7.7 1.2
United Kingdom 21.8 -- 1.9 5.0 2.1
United States -- -- -- -- 8.1
Asia 3.8 0.3 0.2 0.4 3.2
Eastern Europe 2.2 -- -- -- --
Latin America 1.4 -- -- -- --
Western Europe -- -- -- 0.7 --
--------------------------------------------------------------------------------
Total Portfolio 44.9 13.2 4.2 16.3 21.4
================================================================================
Sectoral Composition as of July 31, 2002
[BAR CHART OMITTED]
10 Aberdeen Global Income Fund, Inc.
Portfolio Composition (concluded)
Quality of Investments
As of July 31, 2002, 81.2% of the Fund's assets were invested in securities
where either the issue or the issuer was rated at least "AA" by Standard &
Poor's Corporation or "Aa" by Moody's Investors Service, Inc. or, if unrated,
were judged to be of equivalent quality by the Investment Manager. The table
below shows the asset quality of the Fund's portfolio as of July 31, 2002:
TABLE 5: ABERDEEN GLOBAL INCOME FUND, INC.--
ASSET QUALITY
================================================================================
AAA/Aaa AA/Aa A BBB/Baa BB/Ba* B*
% % % % % %
--------------------------------------------------------------------------------
Australia 80.4 19.2 0.4 -- -- --
Canada 67.9 18.1 14.0 -- -- --
New Zealand 60.4 4.9 23.4 11.3 -- --
United Kingdom 67.8 21.6 10.6 -- -- --
United States 100.0 -- -- -- -- --
Asia 14.2 -- 37.7 28.7 19.4 --
Eastern Europe -- -- -- -- 69.4 30.6
Latin America -- -- -- 100.0 -- --
Western Europe -- -- -- -- -- 100.0
--------------------------------------------------------------------------------
Total Portfolio 66.5 14.7 10.6 4.2 2.6 1.4
================================================================================
* Below investment grade.
Aberdeen Global Income Fund, Inc. 11
Market Review and Outlook
AUSTRALIA
The benchmark 10-year bond yield fell to 5.95% from 6.08% over the quarter ended
July 31, 2002. Economic releases issued during the quarter by the Australian
Bureau of Statistics confirmed the relative resilience of the Australian
economy. The housing market displayed continued strength and business confidence
remained remarkably upbeat in the face of Reserve Bank of Australia ("RBA") rate
hikes. The budget released by the Federal Government in May had little impact on
financial markets.
The Federal Budget announced a return to sustained surpluses over coming fiscal
years, reflecting the Government's intention to save rather than spend the
growth dividend--the revenue benefits of better than expected economic growth.
Following monetary policy tightenings of 0.25% in both May and June, the RBA
opted to leave interest rates unchanged at their July meeting. Their decision
was likely to have been influenced by the recent U.S. corporate turmoil and
equity market weakness, as well as uncertainty about the strength of the global
recovery and concerns about the outlook for the rural sector domestically due to
current dry weather conditions. From a domestic perspective, the case for rates
moving higher is still in place while data in the U.S. points to an economic
recovery. However, the significant weakness in U.S. equity markets and some
initial signs of moderation in the domestic economy's growth pace would seem to
indicate that some downside risks are beginning to emerge.
The Australian dollar fluctuated slightly during the quarter, closing at $0.54
on July 31, 2002.
12 Aberdeen Global Income Fund, Inc.
Market Review and Outlook (continued)
CANADA
During the quarter, the Bank of Canada ("BoC") increased interest rates for the
third time since April, in order to prevent a surge in inflation. The BoC raised
its benchmark overnight rate to 2.75%, a full percentage point higher than the
comparable U.S. rate. The economy grew at a 6% pace in the first quarter, and
continued to expand at a rate of 4.3% through the second quarter of 2002. The
core rate of inflation was at 2.1% during July 2002. Canada's economic recovery,
which began in the last quarter of 2001, gathered momentum in the first half of
2002. As expected, the BoC acted in April and June to raise interest rates and
the Investment Manager expects the BoC to continue gradually removing the
monetary stimulus in coming months.
The Canadian dollar fell slightly over the quarter, closing at $0.63.
NEW ZEALAND
The New Zealand economy started 2002 strongly, with GDP expanding by 1.1% in the
March quarter. The economy has grown over the last four quarters and as a result
is 4.0% higher when compared with the same period in 2001. Despite global
uncertainty, the confidence of New Zealand's consumers has remained relatively
robust, providing a solid base for retail spending in the near term. Despite
three interest rate hikes this year by the Reserve Bank of New Zealand, consumer
confidence rose in the June quarter, boosted by strong employment growth, higher
wages and rising house prices. However, although business confidence has also
held up relatively well, there has been a clear moderation in sentiment in more
recent surveys. Business confidence acts as a leading indicator of GDP growth
and is consistent with the Investment Manager's moderating growth profile into
2003.
The New Zealand dollar rose over the quarter, closing at $0.47.
Aberdeen Global Income Fund, Inc. 13
Market Review and Outlook (continued)
UNITED KINGDOM
In the United Kingdom, conditions for consumers were favorable during the
quarter. Consumer confidence remained positive, underpinned by unemployment
rates at 26-year lows. The outlook for the manufacturing sector also looked more
positive, with actual activity data beginning to reflect the improvement seen in
recent sentiment surveys. Industrial production rose for the first time in 8
months, aided by a sharp jump in exports. The improved strength of the domestic
consumer and the brighter global economic outlook has led to growth upgrades,
and the Investment Manager anticipates an initial tightening of monetary policy
in the September quarter.
The pound rose over the quarter, closing at $1.56.
EASTERN EUROPE
Eastern Europe is benefiting from strong positive credit events and fiscal out
performance, as large trade surpluses are adding to impressive reserves in
Russia, Romania and Bulgaria. This is also being helped by a lack of asset
supply and a shift of money from Latin America into Eastern Europe. The
Investment Manager remains extremely positive on Eastern Europe, while remaining
very cautious on Latin America, being aware that any double-dip scenario in
developed markets could undermine the fragile risk appetite in this market.
LATIN AMERICA
Events in Latin America have been dominated by decreasing confidence in Brazil
ahead of elections in October and the Brazilian currency has suffered as
investors look to withdraw their money. The government is rolling over its
financing requirements and is looking to the International Monetary Fund and
U.S. Treasury for fiscal and moral support. Elsewhere in the region, political
developments and shortfalls in fiscal targets are undermining the risk appetite
of foreign investors. At present, the Fund's exposure to Latin America is
limited to Mexico and Colombia. Mexico's investment grade status means that it
is best placed in Latin America to benefit from a recovery in the U.S. and to
avoid the credit problems engulfing much of the region. In Colombia the new
administration has stated that it hopes to introduce fiscal and pension reform
in the fourth quarter of 2002. The Investment Manager believes that, although
short-term news headlines may appear somewhat negative, the underlying momentum
is actually far more positive than in the last two years.
14 Aberdeen Global Income Fund, Inc.
Market Review and Outlook (concluded)
ASIA
Economies
Despite rising uncertainty about the strength of U.S. economic recovery, the
economies in Asia remain well supported. The Investment Manager believes that
aggressive rate hikes are not expected in the region this year. A number of
central banks have still been able to ease monetary policy further into 2002, as
economic conditions remain soft.
Domestic demand is recovering at a faster pace than previously expected,
reflecting the easier fiscal and monetary policy settings prevailing in the
economies, as well as a better structural environment. Investor interest in the
region is also on the rise, leading to significant capital inflows, which in
turn provide a boost to local currencies' strength.
Domestic Bond and Currency Markets
Asian domestic bond prices were higher over the quarter, with yield curves
flattening in Malaysia, Thailand and the Philippines. The strong performance was
due in part to the rally in U.S. bonds. The Fund's total Asian currency exposure
was increased slightly during the quarter ended July 31, 2002 to 6.5%.
Asian Yankee (U.S.$ denominated) Bond Market
Reduced confidence in Latin America and an oversupply of Malaysian paper
affected Asian Yankee bonds during the period. In particular, Philippine
sovereign bonds gave up a significant portion of the sizeable gains garnered in
the first quarter of the year due to added domestic concerns of a ballooning
fiscal deficit and political uncertainties.
Aberdeen Global Income Fund, Inc. 15
Summary of Key Rates
The following table summarizes the movements of key interest rates and
currencies over the last three and twelve month periods.
================================================================================
July 31, 2002 April 30, 2002 July 31, 2001
--------------------------------------------------------------------------------
Australia
90 day bank bills 4.95% 4.63% 5.06%
10 year bonds 5.95% 6.08% 6.09%
Australian Dollar $ 0.54 $ 0.54 $ 0.51
Canada
90 day bank bills 2.82% 2.40% 4.03%
10 year bonds 5.22% 5.62% 5.66%
Canadian Dollar $ 0.63 $ 0.64 $ 0.65
New Zealand
90 day bank bills 5.94% 5.73% 5.81%
10 year bonds 6.53% 6.72% 6.69%
NZ Dollar $ 0.47 $ 0.45 $ 0.41
United Kingdom
90 day bank bills 3.90% 4.05% 4.95%
10 year bonds 4.86% 5.19% 5.01%
British Pound $ 1.56 $ 1.46 $ 1.43
South Korea
90 day T-bills 4.74% 4.53% 5.04%
10 year bonds 6.46% 7.23% 6.78%
South Korean Won* (Won) 1188.09 (Won) 1294.05 (Won) 1298.00
Thailand
90 day deposits 2.00% 2.00% 2.50%
10 year bonds 5.00% 5.62% 6.30%
Thai Baht* (Baht) 42.02 (Baht) 43.26 (Baht) 45.70
Philippines
90 day T-bills 5.59% 4.72% 9.78%
10 year bonds 12.78% 13.38% 15.99%
Philippines Peso* (Peso) 51.28 (Peso) 50.63 (Peso) 53.55
Malaysia
90 day T-bills 2.73% 2.73% 2.80%
10 year bonds 3.97% 4.70% 4.17%
Malaysian Ringgit* (Ringgit) 3.80 (Ringgit) 3.80 (Ringgit) 3.80
Singapore
90 day T-bills 0.70% 0.78% 2.13%
10 year bonds 3.72% 3.91% 3.62%
Singapore Dollar* S$ 1.76 S$ 1.81 S$ 1.80
US$ Yankee Bonds**
South Korea 4.80% 5.52% 6.40%
Malaysia 5.61% 6.18% 7.19%
Philippines 8.08% 7.79% 10.15%
================================================================================
* These currencies are quoted Asian currency per U.S. dollar. The
Australian, Canadian and New Zealand dollars and the British pound are
quoted U.S. dollars per currency.
** Sovereign issues.
Aberdeen Asset Managers (C.I.) Limited
September 2002
16 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (unaudited)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--111.7%
AUSTRALIA--25.8%
Government Bonds--7.7%
A$
Commonwealth of Australia,
3,000 10.00%, 10/15/02 .................................... 1,650,124
2,000 9.50%, 8/15/03 ...................................... 1,137,948
1,000 10.00%, 10/15/07 .................................... 650,562
500 8.75%, 8/15/08 ...................................... 313,763
2,500 7.50%, 9/15/09 ...................................... 1,493,235
1,500 6.50%, 5/15/13 ...................................... 850,747
Federal National Mortgage
Association, Series EMTN,
2,000 6.375%, 8/15/07 ..................................... 1,108,789
----------
Total government bonds
(cost US$8,173,766) ................................. 7,205,168
----------
Semi-Government Bonds--11.9%
New South Wales--3.4%
New South Wales
Treasury Corporation,
1,500 7.00%, 4/01/04 ...................................... 838,622
4,200 7.00%, 12/01/10 ..................................... 2,414,765
----------
3,253,387
----------
Queensland--4.2%
Queensland Treasury
Corporation,
2,000 8.00%, 5/14/03 (Global) ............................. 1,117,992
1,000 8.00%, 9/14/07 (Global) ............................. 596,693
3,000 6.00%, 6/14/11 ...................................... 1,619,824
1,250 6.00%, 6/14/21 ...................................... 649,316
----------
3,983,825
----------
Victoria--2.0%
State Electricity
Commission of Victoria,
535 10.50%, 5/27/03 ..................................... 303,274
Treasury Corporation
of Victoria,
1,000 9.00%, 6/27/05 ...................................... 589,971
1,500 10.25%, 11/15/06 .................................... 951,480
----------
1,844,725
----------
Western Australia--2.3%
Western Australia
Treasury Corporation,
3,500 8.00%, 6/15/13 ...................................... 2,151,164
----------
Total Australian
semi-government bonds
(cost US$11,917,622) ................................ 11,233,101
----------
Supranational--2.3%
Eurofima,
3,500 9.875%, 1/17/07 ..................................... 2,197,218
----------
Total Australian dollar
supranational bonds
(cost US$2,114,866) ................................. 2,197,218
----------
Utilities--1.2%
Telstra Corp.,
2,000 11.50%, 10/15/02 .................................... 1,101,595
----------
Total Australian utility bonds
(cost US$1,385,525) ................................. 1,101,595
----------
Corporate Non-Banks--2.7%
Brisbane Airport
Corporation, Ltd.,
4,000 7.30%, 6/30/10 ...................................... 2,250,637
GE Capital Australia,
600 6.75%, 9/15/07 ...................................... 331,671
----------
Total Australian
corporate non-bank bonds
(cost US$2,500,144) ................................. 2,582,308
----------
Total Australian
long-term investments
(cost US$26,091,923) ................................ 24,319,390
----------
Aberdeen Global Income Fund, Inc. 17
Portfolio of Investments (unaudited) (continued)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
CANADA--17.7%
Government Bonds--10.6%
C$
Canadian Government,
2,500 7.25%, 6/01/07 ...................................... 1,761,709
3,000 10.25%, 3/15/14 ..................................... 2,683,488
4,000 8.00%, 6/01/23 ...................................... 3,205,151
2,000 9.00%, 6/01/25 ...................................... 1,768,668
Canada (Cayman),
750 7.25%, 6/01/08 ...................................... 523,604
----------
Total Canadian
government bonds
(cost US$10,711,162) ................................ 9,942,620
----------
Semi-Government Bonds--6.4%
British Columbia--1.7%
Province of British Columbia,
2,000 9.50%, 1/09/12 ...................................... 1,623,720
----------
Ontario--1.1%
Ontario Hydro,
500 8.50%, 5/26/25 ...................................... 405,365
Province of Ontario,
1,000 8.75%, 4/22/03 ...................................... 656,246
----------
1,061,611
----------
Quebec--3.6%
Quebec Hydro,
1,500 7.00%, 6/01/04 ...................................... 1,004,905
1,000 3.25%, 1/28/05 (b) .................................. 634,182
2,000 9.625%, 7/15/22 ..................................... 1,748,306
----------
3,387,393
----------
Total Canadian
semi-government bonds
(cost US$6,396,462) ................................. 6,072,724
----------
Banking and Finance--0.7%
Credit Local de France,
1,000 6.75%, 3/21/06 ...................................... 675,852
----------
Total Canadian banking
and finance bonds
(cost US$711,636) ................................... 675,852
----------
Total Canadian
long-term investments
(cost US$17,819,260) ................................ 16,691,196
----------
MALAYSIA--0.8%
Government Bonds--0.3%
MYR
Malaysian Government
1,200 3.833%, 9/28/11 ..................................... 311,122
----------
Total government bonds
(cost US$313,205) ................................... 311,122
----------
Semi-Government Bonds--0.5%
Danamodal Nasional Berhad,
1,800 0.00%, 10/21/03 ..................................... 456,774
----------
Total Malaysian
semi-government bonds
(cost US$445,997) ................................... 456,774
----------
Total Malaysia
long-term investments
(cost US$759,202) ................................... 767,896
----------
18 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (unaudited) (continued)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
NEW ZEALAND--15.4%
Government Bonds--3.0%
NZ$
Canadian Government,
1,000 6.625%, 10/03/07 .................................... 469,813
New Zealand Government,
5,000 6.50%, 4/15/13 ...................................... 2,321,993
----------
Total New Zealand
government bonds
(cost US$2,737,754) ................................. 2,791,806
----------
Utilities--0.5%
Electricity Corporation of
New Zealand Ltd.,
1,000 8.00%, 2/15/03 ...................................... 473,434
----------
Total New Zealand
utility bonds
(cost US$582,583) ................................... 473,434
----------
Banking and Finance--11.1%
Bayerische Hypo- und
Vereinsbank AG,
2,000 7.00%, 9/14/05 ...................................... 938,353
Commerzbank AG,
3,500 8.00%, 2/07/05 ...................................... 1,688,368
GMAC INTL Finance BV,
3,500 8.00%, 3/14/07 ...................................... 1,645,581
Landesbank
Baden-Wuerttemberg,
6,500 5.25%, 1/06/05 ...................................... 2,963,516
Landesbank
Hessen-Thueringen
Girozentrale,
4,000 7.00%, 12/17/07 ..................................... 1,893,249
Transpower Finance Ltd.,
500 8.00%, 6/15/05 ...................................... 242,727
WestPac Trust Securities
2,500 6.00%, 4/28/04 ...................................... 1,163,810
----------
Total New Zealand
banking and finance bonds
(cost US$9,838,391) ................................. 10,535,604
----------
Corporate Non-Banks--0.8%
Housing New Zealand,
1,500 8.00%, 11/15/06 ..................................... 737,610
----------
Total New Zealand
corporate non-bank bonds
(cost US$797,126) ................................... 737,610
----------
Total New Zealand
long-term investments
(cost US$13,955,854) ................................ 14,538,454
----------
PHILIPPINES--0.4%
Government Bonds--0.4%
PHP
Philippine Government,
10,000 13.00%, 4/25/12 ..................................... 197,714
7,000 16.50%, 2/25/09 ..................................... 164,754
----------
Total Philippine
long-term investments
(cost US$409,004) ................................... 362,468
----------
SINGAPORE--0.7%
Government Bonds--0.5%
SG$
Singapore Government,
100 3.00%, 11/01/02 ..................................... 57,072
50 4.00%, 3/01/07 ...................................... 30,077
700 4.625%, 7/01/10 ..................................... 429,099
----------
Total Singapore
government bonds
(cost US$501,899) ................................... 516,248
----------
Aberdeen Global Income Fund, Inc. 19
Portfolio of Investments (unaudited) (continued)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
Utilities--0.2%
SG$
Singapore Power,
250 4.60%, 9/21/07 ...................................... 152,769
----------
Total Singapore utility bonds
(cost US$143,773) ................................... 152,769
----------
Total Singapore
long-term investments
(cost US$645,672) ................................... 669,017
----------
SOUTH KOREA--1.9%
Government Bonds--1.9%
US$
EMBARC Ltd. Linked
Note Series 1-9,
2,000 5.69%, 8/18/03 (b)(c) ............................... 1,753,900
----------
Total Korean
long-term investments
(cost US$1,864,334) ................................. 1,753,900
----------
THAILAND--1.1%
Government Bonds--0.9%
THB
Thailand Government,
550 8.25%, 10/14/03 (d) ................................. 14,026
12,000 8.00%, 12/08/06 (d) ................................. 339,176
15,000 5.375%, 11/30/11 .................................... 365,829
4,000 5.50%, 1/18/17 ...................................... 95,834
----------
Total Thailand
government bonds
(cost US$789,226) ................................... 814,865
----------
Utilities--0.1%
Eastern Water Resources
Development and Management
Company Limited,
5,000 9.00%, 7/22/04 (d) .................................. 131,684
----------
Total Thailand utility bonds
(cost US$126,542) ................................... 131,684
----------
Corporate Non-Banks--0.1%
Advanced Info Service
Public Company Limited,
2,600 6.50%, 3/20/03 (d) .................................. 63,277
----------
Total Thailand
corporate non-bank bonds
(cost US$68,911) .................................... 63,277
----------
Total Thailand
long-term investments
(cost US$984,679) ................................... 1,009,826
----------
UNITED KINGDOM--39.8%
Government Bonds--31.2%
(pound)
United Kingdom Treasury,
500 5.00%, 6/07/04 ...................................... 793,831
1,250 8.50%, 12/07/05 ..................................... 2,192,553
1,100 7.50%, 12/07/06 ..................................... 1,908,134
500 5.75%, 12/07/09 ..................................... 824,920
1,500 8.00%, 9/27/13 ...................................... 2,961,624
600 8.00%, 12/07/15 ..................................... 1,219,936
3,000 8.00%, 6/07/21 ...................................... 6,493,069
4,850 6.00%, 12/07/28 ..................................... 8,957,170
Republic of Finland,
1,000 8.00%, 4/07/03 ...................................... 1,597,895
1,250 10.125%, 6/22/08 .................................... 2,420,857
----------
Total United Kingdom
government bonds
(cost US$29,147,020) ................................ 29,369,989
----------
20 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (unaudited) (continued)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
Utilities--2.7%
(pound)
British Gas PLC,
1,400 8.875%, 7/08/08 ..................................... 2,544,814
-----------
Total United Kingdom
utility bonds
(cost US$2,198,537) ................................. 2,544,814
-----------
Banking and Finance--5.9%
Abbey National Treasury
Services PLC,
1,250 8.00%, 4/02/03 ...................................... 1,997,880
Barclays Bank PLC,
1,000 9.875%, 5/29/49 ..................................... 1,858,909
Lloyds Bank PLC,
500 7.375%, 3/11/04 ..................................... 811,094
Prudential Finance B.V.,
500 9.375%, 6/04/07 ..................................... 912,500
-----------
Total United Kingdom
banking and finance bonds
(cost US$5,051,423) ................................. 5,580,383
-----------
Total United Kingdom
long-term investments
(cost US$36,396,980) ................................ 37,495,186
-----------
UNITED STATES--8.1%
Yankee Bonds--8.1%
US$
AES China
Generating Company,
100 10.125%, 12/15/06 ................................... 93,250
Cable & Wireless
Optus Finance,
100 8.00%, 6/22/10 ...................................... 114,119
CITIC Ka Wah Bank
50 9.125%, 5/31/12 ..................................... 50,938
CNOOC Finance Ltd.,
50 6.375%, 3/08/12 ..................................... 51,310
Kazkommerts INTL BV,
1,000 10.125%, 5/08/07 .................................... 940,000
Korea Development Bank
200 5.25%, 11/16/06 ..................................... 204,164
Petronas Capital Ltd.,
100 7.00%, 5/22/12 ...................................... 104,034
PCCW-HKTC Capital Ltd.,
200 7.75%, 11/15/11 ..................................... 202,000
Republic of Bulgaria,
1,000 8.25%, 1/15/15 ...................................... 996,500
Republic of Colombia,
937 9.75%, 4/9/11 ....................................... 890,357
Republic of Philippines,
50 8.375%, 3/12/09 ..................................... 49,625
50 9.375%, 1/18/17 ..................................... 50,325
1,100 9.875%, 1/15/19 ..................................... 1,067,000
Russian Federation,
1,000 11.00%, 7/24/18 ..................................... 1,051,000
Ukraine Government,
890 11.00%, 3/15/07 ..................................... 891,112
United Mexican States,
1,000 8.30%, 8/15/31 ...................................... 933,000
-----------
Total United States
long-term bonds
(cost US$7,865,118) ................................. 7,688,734
-----------
Total long-term investments
(cost US$106,792,026) ............................... 105,296,067
-----------
Aberdeen Global Income Fund, Inc. 21
Portfolio of Investments (unaudited) (concluded)
As of July 31, 2002
Principal
Amount
Local
Currency (a) Value
(000) Description (US$)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--14.5%
Australia--2.4%
A$
Banque Nationale de Paris
Fixed Deposit,
4,055 4.25%, 8/01/02
(cost US$2,207,202) ................................ 2,207,203
------------
Canada--7.4%
C$
State Street Bank and
Trust Company Time Deposit,
11,060 2.00%, 8/07/02
(cost US$7,033,834) ................................ 6,981,001
------------
New Zealand--1.7%
NZ$
State Street Bank and
Trust Company Fixed Deposit,
3,467 4.25%, 8/07/02
(cost US$1,631,570) ................................ 1,625,676
------------
United Kingdom--3.0%
(pound)
State Street Bank and
Trust Company Fixed Deposit,
1,790 3.81%, 8/07/02
(cost US$2,796,338) ................................ 2,796,338
------------
Total short-term investments
(cost US$13,688,944) ............................... 13,610,218
------------
-------------------------------------------------------------------------------
Total Investments--126.2% (cost US$120,480,970) 118,906,285
Net unrealized appreciation on forward foreign currency
exchange contracts--0.0% (e) 21,393
Other assets in excess of liabilities--5.6% 5,309,763
Liquidation value of preferred stock--(31.8%) (30,000,000)
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders--100.0% $ 94,237,441
===============================================================================
(a) Portfolio securities are listed based on currency in which they are
traded;
A$--Australian dollar NZ$--New Zealand dollar THB--Thailand baht
C$--Canadian dollar PHP--Philippine peso (pound)--British pound
MYR--Malaysian ringgit SG$--Singapore dollar US$--United States dollar
(b) Coupon changes periodically upon a predetermined schedule. Stated interest
rate in effect at July 31, 2002.
(c) Value of security is linked to the value of Government of Korea 7.70%,
8/16/03 and the movement of the South Korean Won.
(d) Securities, or a portion thereof, pledged as collateral for forward
currency exchange contracts.
(e) Forward foreign currency exchange contracts entered into as of July 31,
2002 were as follows:
-----------------------------------------------------------------------------------------------------
Purchases Unrealized
Appreciation/
Contracts to Receive In exchange for Settlement Date Value Depreciation
-----------------------------------------------------------------------------------------------------
CNY 827,810 US$ 100,000 10/24/02 US$ 99,991 $ (9)
INR 4,985,000 US$ 100,000 08/06/02 US$ 102,488 2,488
INR 4,946,980 US$ 101,000 08/06/02 US$ 101,706 706
KRW 3,530,158,800 US$2,933,000 10/10/02 US$2,956,384 23,384
PHP 19,993,640 US$ 388,000 10/29/02 US$ 384,968 (3,032)
THB 4,280,000 US$ 99,651 08/28/02 US$ 101,826 2,175
TWD 7,501,896 US$ 227,000 10/25/02 US$ 222,681 (4,319)
-------
$21,393
=======
22 Aberdeen Global Income Fund, Inc.
Capital Structure
SHARE CAPITAL
==============================================================================================
Authorized Issued
----------------------------------------------------------------------------------------------
300,000,000 9,266,209 Common stock, $0.001 par value per share
100,000,000 30,000,000 Preferred stock, $25,000 liquidation value per share
==============================================================================================
CAPITAL HISTORY
==============================================================================================
Common Stock
----------------------------------------------------------------------------------------------
February 20, 1992 7,857,120 Initial public offering (including seed shares)
April 15, 1992 1,159,200 Exercise of over-allotment on initial public offering
April 15, 1992 26,778 Shares issued through dividend reinvestment program
May 15, 1992 27,795 Shares issued through dividend reinvestment program
June 15, 1992 27,928 Shares issued through dividend reinvestment program
August 14, 1992 25,905 Shares issued through dividend reinvestment program
September 15, 1992 25,391 Shares issued through dividend reinvestment program
October 15, 1992 26,273 Shares issued through dividend reinvestment program
November 16, 1992 26,911 Shares issued through dividend reinvestment program
December 15, 1992 28,946 Shares issued through dividend reinvestment program
February 16, 1993 17,183 Shares issued through dividend reinvestment program
March 11, 1994 16,779 Shares issued through dividend reinvestment program
==============================================================================================
==============================================================================================
Preferred Shares
----------------------------------------------------------------------------------------------
July 23, 1992 600 Initial offering, liquidation value of $50,000
December 3, 1996 600 Stock split reducing liquidation value to $25,000 and
increased shares to 1200
==============================================================================================
Aberdeen Global Income Fund, Inc. 23
[THIS PAGE INTENTIONALLY LEFT BLANK]
Directors
Martin J. Gilbert, Chairman
David L. Elsum
Laurence S. Freedman
Neville J. Miles
William J. Potter
Peter D. Sacks
Anton E. Schrafl
E. Duff Scott
John T. Sheehy
Warren C. Smith
Officers
Hugh Young, President
Michael Karagianis, Vice President
Christian Pittard, Treasurer and Assistant Secretary
Roy M. Randall, Secretary
James Blair, Assistant Vice President
Beverley Hendry, Assistant Treasurer
Timothy Sullivan, Assistant Treasurer
Simon Bignell, Assistant Treasurer
Allan S. Mostoff, Assistant Secretary
Margaret A. Bancroft, Assistant Secretary
Sander M. Bieber, Assistant Secretary
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase, from time to time, shares of its
common stock in the open market.
[RECYCLE LOGO] Printed on post-consumer recycled paper
Aberdeen Global Income Fund, Inc. 25
Corporate Information
Investment Manager Aberdeen Asset Managers (C.I.) Limited
P.O. Box 578, 17 Bond Street
St. Helier, Jersey JE45XB
Channel Islands
Investment Advisor Aberdeen Asset Management Limited
Level 6, 201 Kent Street
Sydney, NSW 2000, Australia
Consultant CIBC World Markets, Inc.
BCE Place, Canada Trust Tower
P.O. Box 500
Toronto, Ontario, M5J 2S8
Canada
Administrator Princeton Administrators, L.P.
P.O. Box 9095
Princeton, New Jersey 08543-9095
Custodian & Transfer Agent State Street Bank and Trust Company
1 Heritage Drive
North Quincy, Massachusetts 02171
Auction Agent Deutsche Bank
Four Albany Street
New York, New York 10006
Independent Accountants PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
Legal Counsel Dechert
1775 Eye Street, N.W.
Washington, DC 20006
Stikeman Elliott
Level 40 Chifley Tower
2 Chifley Square
Sydney, NSW 2000, Australia
Investor Relations Aberdeen Asset Management
45 Broadway, 31st Floor
New York, New York 10006
1-800-522-5465 or 1-212-968-8800
InvestorRelations@aberdeen-asset.com
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Aberdeen
ASSET MANAGERS
Aberdeen Asset Managers (C.I.) Limited
The common shares of Aberdeen Global Income Fund, Inc. are traded on the
New York Stock Exchange under the symbol "FCO." Information about the
Fund's net asset value and market price is published weekly in Barron's
and in the Monday edition of The Wall Street Journal.
This report, including the financial information herein, is transmitted to
the shareholders of Aberdeen Global Income Fund, Inc. 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 returns.