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



    TORONTO, Sept. 3 /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 July 31, 2009.
    The Company's total returns for various periods through July 31, 2009 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
     (June 1986)              466.7          7.8        386.0          7.1
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    10-years                   41.2          3.5         59.1          4.8
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    5-years                     7.8          1.5          7.2          1.4
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    3-years                     4.4          1.4          0.2          0.1
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    1-year                           -5.4                       2.7
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    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 July 31, 2009, the portfolio was invested as follows:

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                               Currency Exposure (%)  Geographic Exposure (%)
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    Australia                          37.9                   21.8
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    New Zealand                         1.2                    1.8
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    United States(*)                    9.8                    4.0
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    Canada                              0.1                    0.1
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    Brazil                              7.5                    7.6
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    Mexico                              7.3                    6.5
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    Turkey                              6.6                    6.6
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    South Korea                         6.7                    9.5
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    Singapore                           2.5                    1.4
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    Thailand                            2.0                    1.6
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    Philippines                         5.0                   11.7
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    Malaysia                            2.3                    1.1
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    India                               3.6                    9.9
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    China                               1.2                    0.5
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    Hong Kong                             -                    1.9
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    Indonesia                           6.3                   14.0
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    (*) Of which 25.6% held in US$ denominated bonds issued by foreign
        issuers.
    

    As of July 31, 2009, the top ten holdings of the portfolio were as
follows:

    
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    Holding                                          Coupon/Maturity     (%)
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    INR Credit Linked Note                         7.27%, 09/03/2013     6.2
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    Turkey Government                             16.00%, 08/28/2013     4.2
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    Mexico Government                              8.50%, 12/13/2018     4.2
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    Mexico Government                              9.50%, 12/18/2014     4.2
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    Turkey Government                             16.00%, 03/07/2012     4.2
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    Indonesia Government                          10.75%, 05/15/2016     3.7
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    Federal Republic of Brazil                       10%, 01/01/2010     3.5
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    Banco ABN Amro Real SA                        16.20%, 02/22/2010     3.2
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    Korea Treasury Bond                            5.75%, 09/10/2013     3.2
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    Indonesia Government                          11.00%, 12/15/2012     3.1
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    TOTAL                                                               39.7
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    As of July 31, 2009 the holdings of the portfolio represented
approximately 60.8% sovereign and state government securities, 2.0%
supranationals, 32.0% corporates, 4.0% cash and 1.2% asset backed securities.
    As of July 31, 2009, the Company's net assets, including C$118.9 million
in bank borrowing, amounted to C$453.4 million. The net asset value per
ordinary share was C$6.48.
    As of July 31, 2009, 45.7% 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 (%)
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    AAA/Aaa        AA/Aa        A         BBB/Baa        BB/Ba            B
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    17.7            8.2       19.8          11.6          41.9           0.8
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    As of July 31, 2009, the average credit quality of the portfolio was A.

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                                 Maturity (%)
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    less than 3 Years     3-5 Years     5-10 Years     greater than 10 Years
    -------------------------------------------------------------------------
            30.5             28.1          35.4                   6.0
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    As of July 31, 2009, the average maturity of the portfolio was 6.0 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 July there were no shares purchased under the
NCIB.
    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. The outstanding balance on the loan as of July 31, 2009 is
US$110,000,000.
    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 a portion of the credit 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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