Abrdn Income Credit Strategies Fund reduced its monthly distribution from $0.0775 to $0.055 per common share. The reduction takes effect with the September 30, 2026, payment.
This adjustment represents a decrease of more than 29%. The new payout establishes an annualized distribution rate of approximately 12.5% of the fund's NAV as of September 10, 2026.
The fund's investment adviser noted that tighter credit spreads have moderated prospective total returns. Despite the cut, the adviser remains optimistic regarding the high-yield asset class.
The fund intends to maintain this new distribution level for at least the next 12 months.