Aberdeen Asia-Pacific Income Fund
By Bryan Perry
At Cash Machine, the Aberdeen Asia-Pacific Income Fund (NYSE:FAX) has emerged as the ballast holding for investors, as this exchange-traded fund has generated nearly 14% annual return during the past five years.
The brightest light for the future of investing shines on the Asia-Pacific region, bar none. The ability for investors to position capital in a diversified bond fund that holds over 270 separate issues (83% of which are investment grade) with an average maturity of seven years, that pays more than a 5.3% yield with monthly distributions is arguably one of the finest assets to hold forever.
Shares of FAX are backed by short-term debt instruments based on higher yielding local currencies from Australia, South Korea, Malaysia, China, the Philippines, Indonesia, Hong Kong, Thailand, India and Singapore. FAX allows American investors to offset the long-term threat of dollar value erosion as the U.S. becomes mired in soaring deficits.
In a market where traditional fixed income investments like money markets, CDs and government backed securities pay less than 2%, FAX provides two-and-a-half times the yield plus steady capital appreciation that mirrors the strength of the Pacific Rim economies. It’s the giant sea turtle of investments that wins the race of building wealth and qualifies as “one for the ages.”