[LOGO]
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Aberdeen
Global Income
Fund, Inc.
[GRAPHIC]
Invests primarily in global fixed-income securities
Quarterly Report
July 31, 2003
Letter to Shareholders
September 12, 2003
Dear Shareholder,
We present this Quarterly Report which covers the activities of Aberdeen Global
Income Fund, Inc. (the "Fund") for the quarter ended July 31, 2003. The Fund's
principal investment objective is to provide high current income by investing
primarily in fixed-income securities denominated in Commonwealth Currencies,
that is, the currencies of Australia, Canada, New Zealand and the United
Kingdom. As a secondary investment objective the Fund seeks capital
appreciation, but only when consistent with its principal investment objective.
High Credit Quality: 77.3% of Securities Rated or Deemed Equivalent to AA/Aa or
Better
The Fund's high credit quality has been maintained. Over 77.3% of assets are
rated AA/Aa or better, or are considered to be of equivalent quality by the
Investment Manager. An additional 11.4% is held in A rated securities.
Distributions
Cash distributions to common shareholders for the 12 months ended July 31, 2003
totaled 72 cents per share. Based on the share price of $11.50 on July 31, 2003,
the cash distribution rate over the 12 months then ended was 6.3%. Since all
distributions are paid after deducting applicable withholding taxes, the
effective distribution rate may be higher for those U.S. investors who are able
to claim a tax credit.
On September 15, 2003 the Board of Directors declared a monthly distribution of
6 cents per share payable on October 10, 2003, to all shareholders of record as
of September 30, 2003.
The Board's policy is to provide investors with a stable monthly distribution
out of current income, supplemented by realized capital gains and, to the extent
necessary, paid-in capital. It is the Board's intention that the monthly
distribution of 6 cents per share be maintained for 12 months, beginning with
the July 2003 distribution payment. This policy is subject to regular review at
the Board's quarterly meetings, unless market conditions require an earlier
evaluation. The next review is scheduled to take place in December 2003.
Aberdeen Global Income Fund, Inc. 1
Letter to Shareholders (continued)
Net Asset Value Performance: 7.5% Per Annum Return Since Inception
The Fund's total return based on Net Asset Value ("NAV") was 3.1% over the
quarter ended July 31, 2003 and 7.5% per annum since inception, assuming the
reinvestment of distributions.
Share Price Performance
The Fund's share price rose 6.6% over the quarter, from $10.79 on April 30, 2003
to $11.50 on July 31, 2003. The Fund's share price on July 31, 2003 represented
a discount of 2.0% to the NAV per share of $11.73 on that date. This represents
a narrowing of the discount to NAV of 6.6% on April 30, 2003.
Global Debt Securities: 12.5% of Total Assets Invested in Global Debt Securities
The Fund may invest up to 35% of its total assets in Global Debt Securities. The
term "Global Debt Securities" includes securities of issuers located in, or
securities denominated in the currency of, countries other than Australia,
Canada, New Zealand or the United Kingdom. As of July 31, 2003, 12.5% of the
Fund's total assets were held in Global Debt Securities. This included 4.7% in
Asian debt securities. At July 31, 2003, 0.9% of the Fund's total assets were
invested in Eastern Europe, 2.5% in Latin America and 4.4% in Western Europe.
2 Aberdeen Global Income Fund, Inc.
Letter to Shareholders (concluded)
In an effort to provide more timely information to shareholders, the market
review and outlook will now be published separately. For information about the
Fund, including a market review and outlook, weekly updates of the share price,
NAV, and details of recent distributions, contact Aberdeen Asset Management,
Investor Relations, by:
o calling toll free on 1-800-522-5465 or 1-212-968-8800 in the United
States,
o emailing to InvestorRelations@aberdeen-asset.com, or
o visiting the website at www.aberdeen-asset.us
For information about the Aberdeen group, visit the Aberdeen website at
www.aberdeen-asset.com
Yours sincerely,
/s/ Martin J. Gilbert
Martin J. Gilbert
Chairman
All amounts are U.S. dollars unless otherwise stated.
Aberdeen Global Income Fund, Inc. 3
--------------------------------------------------------------------------------
Your Board's policy is to provide investors with a stable monthly distribution
out of current income, supplemented by realized capital gains and, to the extent
necessary, paid-in capital.
The Fund is subject to U.S. corporate, tax and securities laws. Under U.S. tax
accounting rules, the amount of distributable income for each fiscal period
depends on the actual exchange rates during the entire year between the U.S.
dollar and the currencies in which Fund assets are denominated and on the
aggregate gains and losses realized by the Fund during the entire year.
Therefore, the exact amount of distributable income for each fiscal year can
only be determined as of the end of the Fund's fiscal year, October 31. However,
under the U.S. Investment Company Act of 1940, the Fund is required to indicate
the source of each distribution to shareholders.
The Fund estimates that distributions for the fiscal year commencing November 1,
2002, including the distribution paid on September 12, 2003, are comprised of
62% net investment income and 38% return of paid-in-capital.
This estimated distribution composition may vary from month to month because it
may be materially impacted by future realized gains and losses on securities and
fluctuations in the value of the currencies in which Fund assets are
denominated.
The amount attributed as return of capital reflects, in part, the realization of
currency losses in the Fund's Australian bond portfolio as a result of
positioning the Fund's investments more towards global debt securities. Fund
assets are marked to market, therefore the realization of such currency losses
does not impact the Fund's net asset value. However, these losses do offset
distributable income, therefore increasing the return of capital component of
the distribution.
In January 2004, a Form 1099 DIV will be sent to shareholders, which will state
the amount and composition of distributions and provide information with respect
to their appropriate tax treatment.
--------------------------------------------------------------------------------
4 Aberdeen Global Income Fund, Inc.
Dividend Reinvestment and Cash Purchase Plan
We invite you to participate in the Fund's Dividend Reinvestment and Cash
Purchase Plan ("the Plan") which allows you to automatically reinvest your
distributions in shares of the Fund's common stock at favorable commission
rates. Distributions made under the Plan are taxable to the same extent as are
cash distributions. The Plan also enables you to make additional cash
investments in shares of at least $100 per month. Under this arrangement
EquiServe Trust Company N.A. (the "Plan Agent") will purchase shares for you on
the stock exchange or otherwise on the open market on or about the 15th of each
month, unless shares of the Fund are trading at a premium, in which case the
Fund will issue additional shares. As a participant in the Plan you will have
the convenience of:
Automatic reinvestment -- the Plan Agent will automatically reinvest your
distributions, allowing you to gradually grow your holdings in the Fund;
Lower costs -- shares purchased on your behalf under the Plan will be at reduced
brokerage rates. Brokerage on share purchases is currently 2 cents per share;
Convenience -- the Plan Agent will hold your shares in non-certificated form and
will provide a detailed record of your holdings at the end of each distribution
period.
To request a brochure containing information on the Plan, together with an
authorization form, please contact the Plan Agent, EquiServe Trust Company N.A.,
P.O. Box 43011, Providence, RI 02490-3011 or call toll free on 1-800-426-5523.
Aberdeen Global Income Fund, Inc. 5
Report of the Investment Manager
Share Price Performance
On July 31, 2003, the Fund's share price was $11.50, which represented a
discount of 2.0% to the NAV of $11.73. At the date of this report, the share
price was $11.30 representing a discount of 4.9% to the NAV of $11.88.
NAV vs Share Price February 1992 through July 2003
A line graph depicting the Net Asset Value vs Share Price. The values are from
July 1992 through July 2003
Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96
Aberdeen Global
Income Fund NAV $14.87 $12.62 $13.55 $14.22 $12.03 $11.91 $12.49 $13.12
Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00
Aberdeen Global
Income Fund NAV $13.20 $13.86 $14.08 $13.41 $12.57 $13.37 $12.42 $11.78 $10.99
Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03
Aberdeen Global
Income Fund NAV $10.71 $9.77 $9.47 $10.18 $11.28 $11.73
Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96
Aberdeen Global
Income Fund
Share Price $15.13 $12.38 $13.25 $13.00 $11.75 $10.25 $11.13 $11.88
Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00
Aberdeen Global
Income Fund
Share Price $11.50 $11.88 $12.31 $12.38 $10.94 $10.88 $10.75 $9.44 $9.25
Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03
Aberdeen Global
Income Fund
Share Price $9.46 $8.81 $8.74 $9.75 $10.81 $11.50
6 Aberdeen Global Income Fund, Inc.
Report of the Investment Manager (continued)
Auction Market Preferred Stock (AMPS)
The Fund's $30 million of AMPS continued to be well bid at the weekly auctions.
The average interest rate paid was 1.29% over the quarter ended July 31, 2003,
compared with 1.15% for 30-day U.S. commercial paper over the same period. These
rates declined over the period as the U.S. Federal Reserve eased interest rates
by 0.25% in late June. The rates paid to preferred shareholders have decreased
further since July 31, 2003 to a level of 1.20% as of the date of this report.
Over the past year, the impact of AMPS on the Fund has been positive, as the key
currencies of the Fund -- the Australian dollar, British pound, New Zealand
dollar and Canadian dollar -- all strengthened against the U.S. dollar. Most key
Asian currencies followed a similar trend, with the Korean won, Thai baht,
Singapore dollar and Indonesian rupiah all rising over the twelve months. In
addition, the fact that U.S. interest rates have remained at historic lows has
meant that the differential between AMPS funding rates and the yields at which
the Fund invests remains positive.
On September 16, 2002, the Fund entered into a two-year interest rate swap
agreement in order to hedge one-third of the Fund's outstanding issue of AMPS.
Under the original terms of the agreement, the Fund received a floating rate of
interest (one month USD-LIBOR BBA rate) based on a notional amount of
US$10,000,000 and paid interest at a fixed rate of 2.46%. The fixed rate
interest payment was re-priced to 2.10% on October 1, 2002, to 1.7175% on
December 24, 2002 and then to 1.37% on February 18, 2003.
The Board of Directors has resolved to amend the Fund's policies with respect to
derivatives to increase the percentage of the Fund's AMPS liabilities which may
be hedged pursuant to interest rate swaps from one-third to up to 100% of the
AMPS liabilities. A significant type of risk associated with interest rate swaps
is the risk that the counterparty may default or file for bankruptcy, in which
case the Fund would bear the risk of loss of the amount expected to be received
under the swap agreement. There can be no assurance that the Fund will have an
interest rate swap in place at any given time nor can there be any assurance
that, if an interest rate swap is in place, it will be successful in hedging the
Fund's interest rate risk with respect to the AMPS. The implementation of this
strategy is at the discretion of the AMPS Pricing Committee of the Board of
Directors.
Aberdeen Global Income Fund, Inc. 7
Portfolio Composition
Geographic Composition
The table below shows the geographic composition of the Fund's total investments
as of July 31, 2003, compared with the previous quarter and twelve months:
TABLE 1: ABERDEEN GLOBAL INCOME FUND, INC.--
GEOGRAPHIC ASSET ALLOCATION
================================================================================
July 31, 2003 April 30, 2003 July 31, 2002
% % %
--------------------------------------------------------------------------------
Australia 23.6 22.7 20.0
Canada 17.3 17.3 17.9
New Zealand 12.3 13.3 11.0
United Kingdom 28.3 32.3 30.8
United States* 6.0 2.3 8.1
Asia 4.7 6.9 7.9
Eastern Europe 0.9 1.0 2.2
Latin America 2.5 3.4 1.4
Western Europe 4.4 0.8 0.7
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* It is a policy of the Investment Manager to maintain a portion of the
Fund's investments in U.S. short-term securities to cover distributions
and expenses.
Geographic Composition
The table below shows the geographic composition of the Fund's total investments
as of July 31, 2003, compared with the previous quarter and twelve months:
================================================================================
July 31, 2003 April 30, 2003 July 31, 2002
% % %
--------------------------------------------------------------------------------
Australia 23.6 22.7 20.0
Canada 17.3 17.3 17.9
New Zealand 12.3 13.3 11.0
United Kingdom 28.3 32.3 30.8
United States 6.0 2.3 8.1
Asia 4.7 6.9 7.9
Eastern Europe 0.9 1.0 2.2
Latin America 2.5 3.4 1.4
Western Europe 4.4 0.8 0.7
================================================================================
8 Aberdeen Global Income Fund, Inc.
Portfolio Composition (continued)
Currency Composition
The table below shows the currency composition of the Fund's total investments
as of July 31, 2003, compared with the previous quarter and twelve months:
TABLE 2: ABERDEEN GLOBAL INCOME FUND, INC.--
CURRENCY ALLOCATION
================================================================================
July 31, 2003 April 30, 2003 July 31, 2002
% % %
--------------------------------------------------------------------------------
Australian Dollar 23.6 22.6 19.9
Canadian Dollar 16.9 17.2 17.6
New Zealand Dollar 15.1 14.5 12.2
British Pound 27.2 31.2 30.0
United States Dollar* 11.6 10.6 13.8
Asian Currencies 3.3 3.9 6.5
Eastern European Currencies -- -- --
Latin American Currencies -- -- --
Western European Currencies 2.3 -- --
--------------------------------------------------------------------------------
Total Portfolio 100.0 100.0 100.0
================================================================================
* Includes Yankee bond investments.
Maturity Composition
As at July 31, 2003, the average maturity of the Fund's assets was 7.4 years,
compared with 8.5 years on April 30, 2003. The table below shows the maturity
composition of the Fund's investments as of July 31, 2003:
TABLE 3: ABERDEEN GLOBAL INCOME FUND, INC.--
MATURITY ANALYSIS
================================================================================
Less than 1 year 1 to 5 years 5 to 10 years Over 10 years
% % % %
--------------------------------------------------------------------------------
Australia 17.7 35.3 44.5 2.5
Canada 20.8 24.3 7.7 47.2
New Zealand 4.5 79.2 16.3 --
United Kingdom 26.1 31.3 2.8 39.8
United States 60.9 8.2 30.9 --
Asia 28.6 35.8 33.9 1.7
Eastern Europe -- -- -- 100.0
Latin America -- -- 28.8 71.2
Western Europe -- 58.9 33.3 7.8
--------------------------------------------------------------------------------
Total Portfolio 19.7 36.9 19.7 23.7
================================================================================
Aberdeen Global Income Fund, Inc. 9
Portfolio Composition (continued)
Sectoral Composition
The table below shows the sectoral composition of the Fund's total investments
as of July 31, 2003:
TABLE 4: ABERDEEN GLOBAL INCOME FUND, INC.--
SECTORAL COMPOSITION
================================================================================
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
% % % % %
--------------------------------------------------------------------------------
Australia 8.2 9.7 1.0 2.3 2.4
Canada 8.7 5.3 -- 0.5 2.8
New Zealand 2.2 -- -- 9.5 0.6
United Kingdom 17.2 -- 1.9 3.9 5.3
United States -- -- -- 1.3 4.7
Asia 3.4 0.1 -- 1.1 0.1
Eastern Europe 0.9 -- -- -- --
Latin America 2.5 -- -- -- --
Western Europe -- -- -- 4.4 --
--------------------------------------------------------------------------------
Total Portfolio 43.1 15.1 2.9 23.0 15.9
================================================================================
Sectoral Composition as of July 31, 2003
The table below shows the sectoral composition of the Fund's total investments
as of July 31, 2003:
================================================================================
Sovereign Provincial/ Utilities/
Gov't. State Supranational Corporate Cash or
Bonds Bonds Bonds Bonds Equivalent
% % % % %
--------------------------------------------------------------------------------
Australia 8.2 9.7 1.0 2.3 2.4
Canada 8.7 5.3 -- 0.5 2.8
New Zealand 2.2 -- -- 9.5 0.6
United Kingdom 17.2 -- 1.9 3.9 5.3
United States -- -- -- 1.3 4.7
Asia 3.4 0.1 -- 1.1 0.1
Eastern Europe 0.9 -- -- -- --
Latin America 2.5 -- -- -- --
Western Europe -- -- -- 4.4 --
================================================================================
10 Aberdeen Global Income Fund, Inc.
Portfolio Composition (concluded)
Quality of Investments
As of July 31, 2003, 77.3% of the Fund's assets were invested in securities
where either the issue or the issuer was rated at least "AA" by Standard &
Poor's Corporation or "Aa" by Moody's Investors Service, Inc. or, if unrated,
were judged to be of equivalent quality by the Investment Manager. The table
below shows the asset quality of the Fund's portfolio as of July 31, 2003:
TABLE 5: ABERDEEN GLOBAL INCOME FUND, INC.--
ASSET QUALITY
================================================================================
AAA/Aaa AA/Aa A BBB/Baa BB/Ba* B*
% % % % % %
--------------------------------------------------------------------------------
Australia 90.2 9.5 0.3 -- -- --
Canada 63.9 20.2 15.9 -- -- --
New Zealand 54.8 16.5 17.8 10.9 -- --
United Kingdom 79.6 8.2 11.6 -- 0.6 --
United States 77.2 -- -- 4.7 13.5 4.6
Asia 1.1 -- 59.4 20.8 18.7 --
Eastern Europe -- -- -- 100.0 --
Latin America -- -- -- 32.0 28.8 39.2
Western Europe -- -- -- -- 70.1 29.9
--------------------------------------------------------------------------------
Total Portfolio 67.0 10.3 11.4 3.5 5.5 2.3
================================================================================
* Below investment grade.
Aberdeen Global Income Fund, Inc. 11
Summary of Key Rates
The following table summarizes the movements of key interest rates and
currencies over the last three and twelve month periods.
================================================================================
July 31, 2003 April 30, 2003 July 31, 2002
--------------------------------------------------------------------------------
Australia
90 day bank bills 4.76% 4.81% 4.95%
10 year bonds 5.43% 5.28% 5.95%
Australian Dollar $ 0.65 $ 0.63 $ 0.54
Canada
90 day bank bills 2.92% 3.25% 2.82%
10 year bonds 4.84% 4.91% 5.22%
Canadian Dollar $ 0.71 $ 0.70 $ 0.63
New Zealand
90 day bank bills 5.08% 5.52% 5.94%
10 year bonds 5.73% 5.90% 6.53%
New Zealand Dollar $ 0.58 $ 0.56 $ 0.47
United Kingdom
90 day bank bills 3.32% 3.53% 3.90%
10 year bonds 4.52% 4.35% 4.86%
British Pound $ 1.61 $ 1.60 $ 1.56
South Korea
90 day T-bills 3.93% 4.36% 4.74%
10 year bonds 5.24% 4.92% 6.46%
South Korean Won* W 1180.50 W 1215.00 W 1188.09
Thailand
90 day deposits 1.00% 1.50% 2.00%
10 year bonds 2.90% 3.42% 5.00%
Thai Baht* B 41.98 B 42.87 B 42.02
Philippines
90 day T-bills 5.83% 7.66% 5.59%
10 year bonds 11.26% 12.55% 12.78%
Philippines Peso* P 54.73 P 52.48 P 51.28
Malaysia
90 day T-bills 2.81% 2.79% 2.73%
10 year bonds 3.92% 3.68% 3.97%
Malaysian Ringgit* R 3.80 R 3.80 R 3.80
Singapore
90 day T-bills 0.63% 0.55% 0.70%
10 year bonds 3.07% 2.10% 3.72%
Singapore Dollar* S$ 1.76 S$ 1.78 S$ 1.76
US$ Yankee Bonds**
South Korea 4.00% 3.86% 4.80%
Malaysia 4.30% 4.13% 5.61%
Philippines 6.78% 7.06% 8.08%
================================================================================
* These currencies are quoted Asian currency per U.S. dollar. The
Australian, Canadian and New Zealand dollars and the British pound are
quoted U.S. dollars per currency.
** Sovereign issues.
Aberdeen Asset Managers (C.I.) Limited
September 2003
12 Aberdeen Global Income Fund, Inc.
Portfolio of Investments
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--106.9%
AUSTRALIA--26.9%
Government Bonds--9.3%
A$
Commonwealth of Australia,
1,500 9.50%, 8/15/03 ........................................ Aaa AAA 973,134
2,600 6.75%, 11/15/06 ....................................... Aaa AAA 1,778,077
1,750 10.00%, 10/15/07 ...................................... NR AAA 1,343,822
2,000 8.75%, 8/15/08 ........................................ Aaa AAA 1,500,060
2,500 7.50%, 9/15/09 ........................................ Aaa AAA 1,804,451
1,000 5.75%, 6/15/11 ........................................ Aaa AAA 660,339
1,000 6.50%, 5/15/13 ........................................ Aaa AAA 694,494
Federal National Mortgage Association, Series EMTN,
2,000 6.375%, 8/15/07 ....................................... Aaa NR 1,347,786
----------
Total Australian government bonds
(cost US$9,367,664) ................................... 10,102,163
----------
Semi-Government Bonds--12.3%
New South Wales--4.2%
New South Wales Treasury Corporation,
2,500 7.00%, 4/01/04 ........................................ NR AAA 1,643,064
4,200 7.00%, 12/01/10 ....................................... NR AAA 2,957,096
----------
4,600,160
----------
Queensland--2.6%
Queensland Treasury Corporation,
1,000 8.00%, 9/14/07 (Global) ............................... Aaa AAA 717,723
2,000 6.00%, 6/14/11 ........................................ Aaa AAA 1,342,032
1,250 6.00%, 6/14/21 ........................................ NR AAA 830,862
----------
2,890,617
----------
Victoria--1.7%
Treasury Corporation of Victoria,
1,000 9.00%, 6/27/05 ........................................ Aaa AAA 695,626
1,500 10.25%, 11/15/06 ...................................... NR AAA 1,125,366
----------
1,820,992
----------
Aberdeen Global Income Fund, Inc. 13
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
AUSTRALIA (concluded)
Semi-Government Bonds (concluded)
Western Australia--3.8%
A$
Western Australia Treasury Corporation,
2,000 8.00%, 10/15/07 ....................................... Aaa AAA 1,433,848
3,500 8.00%, 6/15/13 ........................................ Aaa AAA 2,665,964
----------
4,099,812
----------
Total Australian semi-government bonds
(cost US$11,426,056) .................................. 13,411,581
----------
Supranational--2.4%
Eurofima,
3,500 9.875%, 1/17/07 ....................................... Aaa AAA 2,600,361
----------
Total Australian dollar supranational bonds
(cost US$2,050,002) ................................... 2,600,361
----------
Corporate Non-Banks--2.9%
Brisbane Airport Corporation, Ltd.,
4,000 7.30%, 6/30/10 ........................................ Aaa AAA 2,747,140
GE Capital Australia,
600 6.75%, 9/15/07 ........................................ Aaa AAA 405,555
----------
Total Australian corporate non-bank bonds
(cost US$2,492,723) ................................... 3,152,695
----------
Total Australian long-term investments
(cost US$25,336,445) .................................. 29,266,800
----------
CANADA--16.9%
Government Bonds--10.5%
C$
Canadian Government,
2,500 7.25%, 6/01/07 ........................................ NR AAA 1,989,810
3,000 10.25%, 3/15/14 ....................................... Aaa AAA 3,039,304
4,000 8.00%, 6/01/23 ........................................ Aaa AAA 3,720,476
2,000 9.00%, 6/01/25 ........................................ NR AAA 2,056,382
Canada (Cayman),
750 7.25%, 6/01/08 ........................................ Aaa NR 594,413
----------
Total Canadian government bonds
(cost US$10,615,769) .................................. 11,400,385
----------
14 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
CANADA (concluded)
Semi-Government Bonds--5.7%
British Columbia--1.7%
C$
Province of British Columbia,
2,000 9.50%, 1/09/12 ........................................ Aa2 AA- 1,851,220
Ontario--0.4%
Ontario Hydro,
500 8.50%, 5/26/25 ........................................ Aa2 AA 472,008
Quebec--3.6%
Quebec Hydro,
1,500 7.00%, 6/01/04 ........................................ A1 A+ 1,100,927
1,000 2.969%, 1/28/05 (b) ................................... A1 A+ 710,314
2,000 9.625%, 7/15/22 ....................................... A1 A+ 2,033,973
----------
3,845,214
----------
Total Canadian semi-government bonds
(cost US$5,578,183) ................................... 6,168,442
----------
Banking and Finance--0.7%
Credit Local de France,
1,000 6.75%, 3/21/06 ........................................ Aa2 AA 762,120
----------
Total Canadian banking and finance bonds
(cost US$715,413) ..................................... 762,120
----------
Total Canadian long-term investments
(cost US$16,909,365) .................................. 18,330,947
----------
EUROPEAN UNION--3.0%
Germany--0.7%
Corporate Non-Banks--0.7%
EUR
Kronos International Inc.,
310 8.875%, 6/30/09 ....................................... B2 BB- 345,431
Messer Griesheim Holdings AG,
310 10.375%, 6/01/11 ...................................... B1 B+ 380,323
----------
725,754
----------
France--0.2%
Corporate Non-Bank--0.2%
Remy Cointreau SA,
150 6.50%, 7/01/10 ........................................ Ba2 BB 173,053
----------
Ireland--0.3%
Corporate Non-Bank--0.3%
Valentia Telecommunications LTD,
300 7.25%, 8/15/13 ........................................ Ba3 BB+ 337,665
----------
Aberdeen Global Income Fund, Inc. 15
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
EUROPEAN UNION (concluded)
Luxembourg--0.5%
Corporate Non-Banks--0.5%
EUR
Rhiag SA,
310 10.75%, 6/05/07 ....................................... B2 B+ 368,111
Safilo Capital International SA,
150 9.625%, 5/15/13 ....................................... B3 B 175,586
----------
543,697
----------
Netherlands--0.3%
Corporate Non-Bank--0.3%
Carmeuse Lime BV,
300 10.75%, 7/15/12 ....................................... Ba3 B+ 354,548
----------
United States--1.0%
Corporate Non-Banks--1.0%
Dana Corporation,
300 9.00%, 8/15/11 ........................................ Ba3 BB 354,548
Lear Corporation,
310 8.125%, 4/01/08 ....................................... Ba1 BBB- 376,834
TRW Automotive Inc.,
300 10.125%, 2/15/13 ...................................... B1 B+ 357,925
----------
1,089,307
----------
Total European Union long-term investments
(cost US$3,330,774) ................................... 3,224,024
----------
MALAYSIA--0.1%
Semi-Government Bonds--0.1%
MYR
Danamodal Nasional Berhad,
550 0.00%, 10/21/03 ....................................... NR NR 143,793
----------
Total Malaysia long-term investments
(cost US$143,149) ..................................... 143,793
----------
NEW ZEALAND--19.2%
Government Bonds--3.4%
NZ$
Canadian Government,
1,000 6.625%, 10/03/07 ...................................... Aaa AAA 602,708
New Zealand Government,
5,000 6.50%, 4/15/13 ........................................ Aaa AAA 3,058,184
----------
Total New Zealand government bonds
(cost US$3,000,818) ................................... 3,660,892
----------
16 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
NEW ZEALAND (concluded)
Semi-Government Bonds--1.1%
NZ$
Province of Ontario,
2,000 5.75%, 3/03/08 ........................................ Aa2 AA 1,161,007
----------
Total New Zealand semi-government bonds
(cost US$1,109,241) ................................... 1,161,007
----------
Banking and Finance--12.6%
Bayerische Hypo- und Vereinsbank AG,
2,000 7.00%, 9/14/05 ........................................ A3 A- 1,168,624
Commerzbank AG,
3,500 8.00%, 2/07/05 ........................................ A2 A- 2,103,017
Dexia Municipal Agency
3,000 7.00%, 11/26/07 ....................................... Aaa AAA 1,828,170
GMAC INTL Finance BV,
3,500 8.00%, 3/14/07 ........................................ A3 BBB 2,022,910
Landesbank Baden-Wuerttemberg,
4,200 5.25%, 1/06/05 ........................................ Aaa AAA 2,429,932
Landesbank Hessen-Thueringen Girozentrale,
4,000 7.00%, 12/17/07 ....................................... Aaa AAA 2,435,434
Transpower Finance Ltd.,
500 8.00%, 6/15/05 ........................................ Aa2 AA 299,070
WestPac Trust Securities
2,500 6.00%, 4/28/04 ........................................ Aa3 AA- 1,454,592
----------
Total New Zealand banking and finance bonds
(cost US$10,870,329) .................................. 13,741,749
----------
Corporate Non-Banks--0.8%
Housing New Zealand,
1,500 8.00%, 11/15/06 ....................................... Aaa AA- 931,823
----------
Total New Zealand corporate non-bank bonds
(cost US$753,827) ..................................... 931,823
----------
Supranational--1.3%
European Investment Bank,
2,300 7.00%, 12/17/07 ....................................... Aaa AAA 1,400,374
----------
Total New Zealand supranational bonds
(cost US$1,138,313) ................................... 1,400,374
----------
Total New Zealand long-term investments
(cost US$16,872,528) .................................. 20,895,845
----------
Aberdeen Global Income Fund, Inc. 17
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
PHILIPPINES--0.3%
Government Bonds--0.3%
PHP
Philippine Government,
7,000 16.50%, 2/25/09 ....................................... Baa3 BBB 159,818
10,000 13.00%, 4/25/12 ....................................... Baa3 NR 201,190
----------
Total Philippine long-term investments
(cost US$407,599) ..................................... 361,008
----------
SOUTH KOREA--3.3%
Government Bonds--3.3%
US$
EMBARC Ltd. Linked Note Series 1-9,
2,000 6.082%, 8/18/03 (b)(c) ................................ NR NR 1,698,100
EMBARC Ltd. Linked Note Series 1-14,
2,100 4.633%, 10/11/07 (b)(d) ............................... NR NR 1,840,818
----------
Total Korean long-term investments
(cost US$3,827,873) ................................... 3,538,918
----------
THAILAND--0.5%
Government Bonds--0.5%
THB
Thailand Government,
9,500 8.00%, 12/08/06 (e) ................................... Baa1 NR 272,916
4,000 5.375%, 11/30/11 ...................................... Baa1 NR 115,381
3,500 4.125%, 11/01/12 ...................................... Baa1 NR 93,056
2,000 5.50%, 1/18/17 ........................................ Baa1 NR 58,860
----------
Total Thailand long-term investments
(cost US$479,527) ..................................... 540,213
----------
18 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
UNITED KINGDOM--28.0%
Government Bonds--22.0%
(pound)
United Kingdom Treasury,
500 5.00%, 6/07/04 ........................................ Aaa AAA 814,749
1,250 8.50%, 12/07/05 ....................................... Aaa AAA 2,218,973
1,100 7.50%, 12/07/06 ....................................... Aaa AAA 1,959,515
500 5.75%, 12/07/09 ....................................... Aaa AAA 866,898
1,500 8.00%, 9/27/13 ........................................ Aaa AAA 3,088,958
600 8.00%, 12/07/15 ....................................... Aaa AAA 1,268,257
3,000 8.00%, 6/07/21 ........................................ Aaa AAA 6,710,598
2,350 6.00%, 12/07/28 ....................................... NR AAA 4,450,673
Republic of Finland,
1,250 10.125%, 6/22/08 ...................................... Aaa AAA 2,495,437
----------
Total United Kingdom government bonds
(cost US$22,604,252) .................................. 23,874,058
----------
Utilities--2.4%
British Gas PLC,
1,400 8.875%, 7/08/08 ....................................... A2 A 2,636,160
----------
Total United Kingdom utility bonds
(cost US$2,184,080) ................................... 2,636,160
----------
Banking and Finance--3.4%
Barclays Bank PLC,
1,000 9.875%, 5/29/49 ....................................... Aa2 A+ 1,947,743
Lloyds Bank PLC,
500 7.375%, 3/11/04 ....................................... Aa1 AA- 819,837
Prudential Finance B.V.,
500 9.375%, 6/04/07 ....................................... NR AA- 929,720
----------
Total United Kingdom banking and finance bonds
(cost US$3,125,899) ................................... 3,697,300
----------
Corporate Non-Banks--0.2%
Big Food Group PLC,
150 9.75%, 6/30/12 ........................................ B1 B+ 226,651
----------
Total United Kingdom corporate non-bank bonds
(cost US$227,219) ..................................... 226,651
----------
Total United Kingdom long-term investments
(cost US$28,141,450) .................................. 30,434,169
----------
Aberdeen Global Income Fund, Inc. 19
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
UNITED STATES--8.7%
Corporate Non-Banks--0.7%
(pound)
American Standard Inc.,
221 8.25%, 6/01/09 ........................................ Ba2 BB+ 376,561
Constellation Brands Inc.,
200 8.50%, 11/15/09 ....................................... Ba2 BB 339,172
----------
Total United States corporate non-bank bonds
(cost US$736,715) ..................................... 715,733
----------
Yankee Bonds--8.0%
Australia--0.1%
Corporate Non-Banks--0.1%
US$
Cable & Wireless Optus Finance,
100 8.00%, 6/22/10 ........................................ A2 A+ 113,063
----------
Brazil--1.2%
Government--1.2%
Federal Republic of Brazil,
1,500 11.00%, 8/17/40 ....................................... B2 B+ 1,275,000
----------
China--0.3%
Banking and Finance--0.1%
CITIC Ka Wah Bank,
50 9.125%, 5/31/12 ....................................... Baa3 NA 55,265
----------
Corporate Non-Bank--0.2%
PCCW-HKTC Capital Ltd.,
200 7.75%, 11/15/11 ....................................... Baa2 BBB 225,200
----------
Utilities--0.0%
CNOOC Finance Ltd.,
50 6.375%, 3/08/12 ....................................... Baa1 BBB 55,255
----------
335,720
----------
Colombia--0.9%
Government--0.9%
Republic of Colombia,
868 9.75%, 4/09/11 ........................................ Ba2 BB+ 968,003
----------
20 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
UNITED STATES (continued)
Yankee Bonds (continued)
Malaysia--0.1%
Utilities--0.1%
US$
Petronas Capital Ltd.,
100 7.00%, 5/22/12 ........................................ Baa1 BBB+ 110,700
----------
Mexico--1.0%
Government--1.0%
United Mexican States,
1,000 8.30%, 8/15/31 ........................................ Baa2 BBB- 1,063,500
----------
Netherlands--1.9%
Banking and Finance--1.9%
Kazkommerts INTL BV,
1,000 10.125%, 5/08/07 ...................................... Baa3 BB- 1,080,000
Turanalem Finance BV,
1,000 10.00%, 5/29/07 ....................................... Baa3 BB- 1,057,000
----------
2,137,000
----------
Philippines--1.1%
Government--0.1%
Republic of Philippines,
50 8.375%, 3/12/09 ....................................... Ba1 BB 52,500
50 9.375%, 1/18/17 ....................................... Ba1 BB 54,250
----------
106,750
----------
Utilities--1.0%
Philippine Long Distance Telephone Company
1,000 11.375%, 5/15/12 ...................................... Ba3 BB 1,099,073
----------
1,205,823
----------
Russia--1.2%
Government--1.2%
Russian Federation,
1,000 11.00%, 7/24/18 ....................................... Ba2 BB 1,307,500
----------
Aberdeen Global Income Fund, Inc. 21
Portfolio of Investments (continued)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
UNITED STATES (concluded)
Yankee Bonds (concluded)
South Korea--0.2%
Banking and Finance--0.2%
US$
Korea Development Bank
200 5.25%, 11/16/06 ....................................... A3 A- 212,895
-----------
Total United States yankee bonds
(cost US$7,557,755) ................................... 8,729,204
-----------
Total United States long-term bonds
(cost US$8,294,470) ................................... 9,444,937
-----------
Total long-term investments
(cost US$103,743,180) ................................. 116,180,654
-----------
SHORT-TERM INVESTMENTS--16.6%
Australia--2.9%
A$
Banque Nationale de Paris Fixed Deposit,
4,352 4.50%, 8/01/03 ........................................ NR NR 2,820,621
Mirvac Group,
500 4.75%, 7/15/04 ........................................ AA NR 323,204
-----------
(cost US$3,145,944) ................................... 3,143,825
-----------
Canada--3.6%
C$
State Street Bank and Trust Company Time Deposit,
5,538 2.00%, 8/06/03
(cost US$3,998,123) ................................... NR NR 3,932,540
-----------
New Zealand--0.8%
NZ$
State Street Bank and Trust Company Fixed Deposit,
4.25%, 8/06/03
1,502 (cost US$889,484) ..................................... NR NR 870,709
-----------
22 Aberdeen Global Income Fund, Inc.
Portfolio of Investments (concluded)
As of July 31, 2003 (unaudited)
Principal
Amount
Local
Currency (a) Moody's S&P Value
(000) Description Rating Rating (US$)
---------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (concluded)
United Kingdom--6.6%
(pound)
State Street Bank and Trust Company Fixed Deposit
3.125%, 8/06/03
4,450 (cost US$7,196,094) ................................... NR NR 7,153,156
-----------
United States--2.7%
US$
2,895 Repurchase Agreement, State Street Bank and Trust
Company, .90% dated 7/31/03, due 8/01/03 in the
amount of $2,895,072 (collateralized by $2,185,000
U.S. Treasury Notes, 8.125% due 5/15/21; value
$2,956,170)
(cost US$2,895,000) ................................... NR NR 2,895,000
-----------
Total short-term investments
(cost US$18,124,645) .................................. 17,995,230
-----------
---------------------------------------------------------------------------------------------------
Total Investments--123.5% (cost US$121,867,825) 134,175,884
Net unrealized appreciation on forward foreign currency exchange contracts--0.0% (f) (4,070)
Other assets in excess of liabilities--4.1% 4,511,713
Liquidation value of preferred stock--(27.6%) (30,000,000)
---------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shareholders--100.0% $108,683,527
===================================================================================================
NR--Not rated by Moody's or Standard & Poors.
(a) Portfolio securities are listed based on currency in which they are
traded;
A$--Australian dollar
C$--Canadian dollar
CNY--Chinese yuan
INR--Indian rupee
EUR--Euro
KRW--South Korean won
MYR--Malaysian ringgit
NZ$--New Zealand dollar
PHP--Philippine peso
SG$--Singapore dollar
THB--Thailand baht
(pound)--British pound
US$--United States dollar
(b) Coupon changes periodically upon a predetermined schedule. Stated interest
rate in effect at July 31, 2003.
(c) Value of security is linked to the value of Government of Korea 7.70%,
8/16/03 and the movement of the South Korean Won.
(d) Value of security is linked to the value of Government of Korea 5.77%,
10/09/07 and the movement of the South Korean Won.
(e) Securities, or a portion thereof, pledged as collateral for derivative
instruments.
(f) Forward foreign currency exchange contracts entered into as of July 31,
2003 were as follows:
-------------------------------------------------------------------------------------------------
Purchases
Unrealized
Contracts to Receive In exchange for Settlement Date Value Depreciation
-------------------------------------------------------------------------------------------------
EUR 283,728 US$323,420 8/01/2003 US$319,350 $(4,070)
Aberdeen Global Income Fund, Inc. 23
[THIS PAGE INTENTIONALLY LEFT BLANK]
Directors
Martin J. Gilbert, Chairman
David L. Elsum
Laurence S. Freedman
Neville J. Miles
William J. Potter
Peter D. Sacks
Anton E. Schrafl
E. Duff Scott
John T. Sheehy
Warren C. Smith
Officers
Hugh Young, President
James Blair, Vice President
Christian Pittard, Treasurer and
Assistant Secretary
Roy M. Randall, Secretary
Alison Briggs, Assistant Vice President
Beverley Hendry, Assistant Treasurer
Timothy Sullivan, Assistant Treasurer
Simon Bignell, Assistant Treasurer
Sander M. Bieber, Assistant Secretary
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase, from time to time, shares of its
common stock in the open market.
[RECYCLED LOGO] Printed on post-consumer recycled paper
Aberdeen Global Income Fund, Inc. 25
Corporate Information
Investment Manager Aberdeen Asset Managers (C.I.) Limited
P.O. Box 578, 17 Bond Street
St. Helier, Jersey JE45XB
Channel Islands
Investment Adviser Aberdeen Asset Management Limited
Level 6, 201 Kent Street
Sydney, NSW 2000, Australia
Consultant CIBC World Markets, Inc.
BCE Place, Canada Trust Tower
P.O. Box 500
Toronto, Ontario, M5J 2S8
Canada
Administrator Princeton Administrators, L.P.
P.O. Box 9095
Princeton, New Jersey 08543-9095
Custodian State Street Bank and Trust Company
1 Heritage Drive
North Quincy, Massachusetts 02171
Transfer Agent EquiServe Trust Company N.A.
P.O. Box 43011
Providence, RI 02940-3011
1-800-451-6788
Auction Agent Deutsche Bank Trust Company Americas
280 Park Avenue, 9th Floor
New York, New York 10018
Independent Auditors PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
Legal Counsel Dechert LLP
1775 I Street, N.W.
Washington, DC 20006
The Seidler Law Firm
Level 40, The Chifley Tower
2 Chifley Square
Sydney, NSW 2000, Australia
Investor Relations Aberdeen Asset Management
45 Broadway, 31st Floor
New York, New York 10006
1-800-522-5465 or 1-212-968-8800
InvestorRelations@aberdeen-asset.com
[LOGO]
Aberdeen
ASSET MANAGERS
Aberdeen Asset Managers (C.I.) Limited
The common shares of Aberdeen Global Income Fund, Inc. are traded on the New
York Stock Exchange under the symbol "FCO." Information about the Fund's net
asset value and market price is published weekly in Barron's and in the Monday
edition of The Wall Street Journal.
This report, including the financial information herein, is transmitted to the
shareholders of Aberdeen Global Income Fund, Inc. for their general information
only. It does not have regard to the specific investment objectives, financial
situation and the particular needs of any specific person. Past performance is
no guarantee of future returns.