40th Anniversary Podcast, a reflection on the legacy of FAX
In this special episode, Adam McCabe—Head of Fixed Income, Asia Pacific and Portfolio Manager for FAX reflects on the fund’s rich history and enduring relevance
Duration: 3 Mins
Date: Apr 16, 2026
Forty Years of Income in a Changing World
Over the past four decades, Asia and Australia have undergone profound transformation. In the mid 1980s, Australia was opening its economy, floating its currency and reforming its financial markets. Across Asia, bond markets were shallow, access for international investors was limited, and the idea of building diversified income portfolios across the region was still relatively new.
Today, the Asia Pacific region is home to some of the world’s most liquid bond markets, a wide range of currencies and issuers, and a far more prominent role in global portfolios. Yet one investor need has remained constant throughout this period: the need for reliable income.
That enduring demand sits at the heart of the abrdn Asia-Pacific Income Fund, Inc. (NYSE: FAX), which celebrates its 40th anniversary this year.
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An early opportunity — and a clear purpose
The origins of abrdn Asia-Pacific Income Fund, Inc. can be traced back to an earlier vehicle launched in 1986 to give US investors access to income opportunities that were largely unavailable at the time. Australian government bonds were yielding double digits, yet participation by US investors was limited by market structure, currency barriers and access constraints.
From the outset, it had a clear and simple purpose: to seek income, with the potential for incidental capital appreciation. That objective has remained unchanged for four decades. What has evolved is the opportunity set around it.
As Australia’s bond market matured and yields normalized, income opportunities increasingly emerged elsewhere across the Asia Pacific region. Over time, the fund broadened its investment universe beyond Australia, reflecting the growing depth and diversity of fixed income markets across Asia, while remaining anchored to its original income-focused mandate.
Reaching a 40-year milestone is rare in any market, particularly in a region that has undergone such profound economic and financial change.
Evolving with markets — without losing focus
The past 40 years have not been smooth. The abrdn Asia-Pacific Income Fund, Inc. has navigated multiple interstate cycles, currency swings, emerging market crises, the Global Financial Crisis, and the sharp market dislocation of the COVID19 pandemic.
Throughout these episodes, the fund’s structure as a closed-end vehicle has played an important role. Unlike open-ended funds, closed-end funds are not required to meet daily redemptions during periods of market stress. That structural stability has allowed the portfolio team to remain focused on long-term income generation, even when markets were volatile and liquidity conditions were strained.
The fund has also evolved in how it manages risk. Currency exposure, duration and leverage are actively managed, supported by an investment process that combines top-down macro analysis with bottom-up security selection across sovereign, quasi-sovereign and corporate issuers.
Forty years and counting
Reaching a 40-year milestone is rare in any market, particularly in a region that has undergone such profound economic and financial change. The abrdn Asia-Pacific Income Fund, Inc.’s longevity reflects both the enduring relevance of income investing and the ability of the strategy to adapt without losing its identity.
As Asia Pacific markets continue to evolve, abrdn Asia-Pacific Income Fund, Inc. enters its fifth decade guided by the same discipline that shaped those early years: a focus on income, diversification and long-term stewardship.
Visit Aberdeen’s Closed-End Investor Center to learn more about the full range of closed-end fund investment opportunities.
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abrdn Asia-Pacific Income Fund, Inc.
Ticker: FAX