Aberdeen Asia-Pacific Income Investment Company Limited Announces performance data and portfolio composition



    TORONTO, Oct. 30 /CNW/ - Aberdeen Asia-Pacific Income Investment Company
Limited (the "Company") (TSX: FAP), a closed-end investment company trading on
The Toronto Stock Exchange, today announced performance data and portfolio
composition details as of September 30, 2008.
    The Company's total returns for various periods through September 30,
2008 are provided below. (All figures are based on distributions reinvested at
the dividend reinvestment price and are stated net-of-fees):

    
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    Period              NAV Total Return (%)    Market Price Total Return (%)
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                      Cumulative   Annualized     Cumulative    Annualized
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    Since inception     417.7          7.7           293.4          6.3
     (June 1986)
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    10-years             43.5          3.7            37.1          3.2
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    5-years               3.7          0.7            -6.8         -1.4
    -------------------------------------------------------------------------
    3-years              -0.7         -0.2           -21.6         -7.8
    -------------------------------------------------------------------------
    1-year                     -4.3                         -15.9
    -------------------------------------------------------------------------

    The Company's returns, which are denominated in Canadian dollars, are
affected by the performance of the Canadian dollar against the various
currencies listed below.

    As of September 30, 2008, the portfolio was invested as follows:

    -------------------------------------------------------------------------
                          Currency Exposure (%)     Geographic Exposure (%)
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    Australia                    42.5                       28.1
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    New Zealand                   3.4                        3.3
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    United States (*)            23.2                        4.7
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    Canada                        0.1                        0.1
    -------------------------------------------------------------------------
    Mexico                        1.3                        1.3
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Brazil                       10.9                       10.6
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    South Korea                   2.3                        4.0
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    Singapore                     2.2                        2.7
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    Thailand                      1.4                        2.2
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    Philippines                   1.3                       15.6
    -------------------------------------------------------------------------
    Malaysia                      3.0                        3.7
    -------------------------------------------------------------------------
    India                           -                        1.7
    -------------------------------------------------------------------------
    China                         0.6                        2.3
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    Hong Kong                       -                        3.9
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    Indonesia                     7.8                       15.3
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    Taiwan                          -                        0.3
    -------------------------------------------------------------------------
    Macau                           -                        0.2
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    (*) Of which 35.2% held in US$ denominated bonds issued by foreign
        issuers.


    As of September 30, 2008, the top ten holdings of the portfolio were as
follows:

    -------------------------------------------------------------------------
    Holding                                          Coupon/Maturity     (%)
    -------------------------------------------------------------------------
    Federal Republic of Brazil                         10%, 01/01/10     9.2
    -------------------------------------------------------------------------
    Barclays Indonesia Government Bond Linked Note     10%, 07/17/17     5.6
    -------------------------------------------------------------------------
    Banco ABN Amro Real SA                          16.20%, 02/22/10     3.1
    -------------------------------------------------------------------------
    Republic of Philippines                        10.625%, 03/16/25     2.9
    -------------------------------------------------------------------------
    Philippine Government                            8.75%, 03/03/13     2.3
    -------------------------------------------------------------------------
    Republic of Philippines                          7.75%, 01/14/31     2.3
    -------------------------------------------------------------------------
    Indonesia Government                            11.60%, 08/15/18     2.3
    -------------------------------------------------------------------------
    Mexico Fixed Rate Bonds                             8%, 12/17/15     1.9
    -------------------------------------------------------------------------
    Hutchison Whampoa Ltd.                           6.50%, 02/13/13     1.8
    -------------------------------------------------------------------------
    Queensland Treasury                                 6%, 10/14/15     1.7
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    TOTAL                                                               33.1
    -------------------------------------------------------------------------
    

    As of September 30, 2008 the holdings of the portfolio represented
approximately 48.9% sovereign and state government securities, 3.8%
supranationals, 44.8% corporates and 2.5% cash.
    As of September 30, 2008, the Company's net assets, including C$154.2
Million in bank borrowing, amounted to C$500.7 million. The net asset value
per ordinary share was C$6.65.
    As of September 30, 2008, 48.5% of the portfolio was invested in
securities where either the issue or the issuer was rated "A" or better, or
judged by the Investment Manager to be of equivalent quality.

    The credit quality and maturity breakdown of the portfolio was as
follows:

    
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                               Credit Quality (%)
    -------------------------------------------------------------------------
             AAA/Aaa     AA/Aa     A     BBB/Baa     BB/Ba     B
    -------------------------------------------------------------------------
              23.2        8.8    16.5     17.9       32.0     1.6
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                 Maturity (%)
    -------------------------------------------------------------------------
    (less than)3 Years   3-5 Years    5-10 Years     (greater than)10 Years
    -------------------------------------------------------------------------
            29.2            19.7         36.8                 14.3
    -------------------------------------------------------------------------
    

    As of September 30, 2008, the average maturity of the portfolio was 8.1
years.
    The Company has a Normal Course Issuer Bid ("NCIB") in place whereby
shares of the Company may be purchased at times when the market price per
share trades at a discount in excess of 8% to the Company's net asset value
per share. During the month of September 95,700 shares were purchased under
the NCIB. The Company will cancel the shares purchased under the bid.
    A revolving credit loan facility, in the amount of US$120,000,000, was
entered into on October 5, 2006 with the Bank of Nova Scotia, in order to fund
the redemption of the Company's Auction Market Preferred Stock ("AMPS") that
took place in October 2006. The revolving credit loan facility was amended
with effect from October 3, 2007, to increase the facility from US$120,000,000
to US$165,000,000. During the month of September the loan outstanding was
reduced by US$20,000,000, bringing the outstanding balance on the loan to
US$145,000,000.
    The leverage is used with the intent of enhancing returns by borrowing at
interest rates that are lower than the relatively higher yields of the
Asian-Pacific fixed income securities in which the Company invests. The
Company has entered into interest rate swap agreements in order to fix the
interest payable on an aggregate notional amount of US$107,000,000, which
represents 74% of the bank loan facility. Details regarding the revolving
credit loan facility and the interest rate swap agreements are contained in
the Company's annual and semi-annual reports to shareholders.

    Important Information

    Aberdeen Asset Management Inc., the Company's Administrator, has prepared
this report based on information sources believed to be accurate and reliable.
However, the figures are unaudited and neither the Company, the Administrator,
Aberdeen Asset Management Asia Limited (the Investment Manager), Aberdeen
Asset Management Limited (the Investment Advisor), nor any other person
guarantees their accuracy. Investors should seek their own professional advice
and should consider the investment objectives, risks, charges and expenses
before acting on this information.
    Total return figures are stated net-of-fees, in C$ and represent past
performance. They assume reinvestment of dividends at the dividend
reinvestment price on the ex-dividend date and include long-term capital
gains. The returns are not adjusted for any issuance of rights or warrants by
the Company. Past performance is not indicative of future results, current
performance may be higher or lower. Inception date June 13, 1986.

    Information in this press release that is not current or historical
factual information may constitute forward-looking information within the
meaning of securities laws. Implicit in this information, particularly in
respect of future financial performance and condition of the Company, are
factors and assumptions which, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect. Shareholders are
cautioned that actual results are subject to a number of risks and
uncertainties, including general economic and market factors, including
credit, currency, political and interest-rate risks and could differ
materially from what is currently expected. The Company has no specific
intention of updating any forward-looking information whether as a result of
new information, future events or otherwise, except as required by law.

    
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    If you wish to receive this information electronically, please contact
    InvestorRelations@aberdeen-asset.com
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For further information:

For further information: Aberdeen Asset Management Inc., Investor
Relations, (800) 992-6341, InvestorRelations@aberdeen-asset.com


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