Today, Delaware Ivy High Income Opportunities Fund (the “Acquired Fund”), a closed-end fund listed on the New York Stock Exchange and trading under the symbol “IVH”, announced that its board of directors (the ” Board”) had approved the reorganization of the acquired fund into abrdn Income Credit Strategies Fund (the “Acquiring Fund”), a closed-end fund listed on the New York Stock Exchange that trades under the symbol “ACP” (the “Reorganization” ).
It is currently expected that the reorganization will be completed in the first quarter of 2023 subject to (i) the approval of the reorganization by the shareholders of the acquired fund, (ii) the approval by the shareholders of the acquiring fund of the issuance of shares of the acquiring fund, and (iii) the satisfaction of customary closing conditions.
Delaware Management Company, a series of Macquarie Investment Management Business Trust, is the investment manager of the acquired fund. Aberdeen Asset Managers Limited is the investment advisor to the Acquiring Fund and abrdn Inc. is the investment sub-advisor to the Acquiring Fund.
This press release is not intended to, and does not constitute, an offer to buy or sell shares of the Acquiring Fund or the Acquiring Fund, nor is this press release intended to solicit a proxy. a shareholder of one of the Acquired Funds or the Acquiring Fund. The solicitation to buy or sell securities or proxies to effect the Reorganization will only be made by a definitive proxy statement/prospectus of the Acquiring Fund and the Acquiring Fund and a definitive proxy statement of the Acquiring Fund.
The proxy statement/prospectus and proxy statement have not yet been filed with the United States Securities and Exchange Commission (the “SEC”). After the proxy statement/prospectus and proxy statement are filed with the SEC, each may be amended or withdrawn. The proxy statement/prospectus will not be distributed to shareholders of the acquired fund until a registration statement including the proxy statement/prospectus has been declared effective by the SEC.
SHAREHOLDERS OF THE ACQUIRED FUND ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATION. SHAREHOLDERS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, COSTS AND EXPENSES OF THE ACQUIRED FUND AND THE ACQUIRING FUND. THE INFORMATION STATEMENT/PROSPECTUS CONTAINS INFORMATION REGARDING THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE ACQUIRED FUND AND THE ACQUIRING FUND.
The proxy statement/prospectus will not constitute an offer to buy or sell securities, in any state where such offer or sale is not authorized.
Shareholders of the acquired fund may obtain free copies (when available) of the proxy statement/prospectus and other documents filed with the SEC at the SEC’s website at www.sec .gov. In addition, free copies (when available) of the proxy statement/prospectus and other documents filed with the SEC may also be obtained by directing a request to the acquired fund at (866) 437-0252 or by visiting his website at delawarefunds. com/closed.
About the Acquired Fund
The Fund is a non-diversified closed-end investment company. The Fund’s investment objective is to seek total return through a combination of a high level of current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of high yield corporate bonds of varying maturities and other fixed income instruments of primarily corporate issuers, including secured loans Tier 1 and Tier 2 (“secured loans”). In addition, the Fund uses leverage techniques to try to obtain a higher return for the Fund. There can be no assurance that the Fund will achieve its investment objective.
Under normal circumstances, the Fund will invest at least 80% of its assets under management (as defined below) in a portfolio of US and foreign bonds, loans and other fixed income instruments, as well as other investments (including derivatives) with similar economic characteristics. . The Fund will primarily invest in instruments which, at the time of purchase, are rated below investment grade (below Baa3 by Moody’s Investors Service, Inc. (“Moody’s”) or below BBB- by Standard & Poor’s Rating Services (“S&P”) or Fitch, Inc. (“Fitch”), or comparably rated by another nationally recognized statistical rating organization (“NRSRO”)), or unrated but deemed by the advisor to be of comparable quality. “Assets Under Management” means the total assets of the Fund, including assets attributable to proceeds of any borrowing or other forms of structural leverage less liabilities other than total indebtedness incurred for leverage purposes. the sink. The Fund may invest 100% of its Managed Assets in fixed income instruments and securities issued by foreign issuers, and up to 25% of its Managed Assets in fixed income instruments and securities of emerging market issuers . These foreign instruments may be denominated in US dollars or foreign currencies. Under normal market conditions, the Sub-Fund’s investments will mainly consist of high yield bonds and/or Secured Loans; however, the Fund’s investments in fixed income instruments may also include, to a lesser extent, debentures, notes, commercial paper, investment grade bonds, loans other than secured loans, including loans unsecured and mezzanine loans, and other similar types of debt securities, as well as derivatives relating to or referencing these types of securities and instruments. The Fund will not invest in loan-backed bonds or asset-backed bonds. The Fund will seek to dynamically adjust and hedge its duration based on available market opportunities. Under normal circumstances, the dollar-weighted average duration of the Fund’s portfolio will generally be between zero and seven years.
The price of shares in the Fund will fluctuate with market conditions and other factors. Closed-end funds often trade at a discount to their net asset value (NAV), which can increase an investor’s risk of loss. When sold, shares may have a market price below net asset value and may be worth less than the original investment when sold.
The Fund’s investments in below investment grade securities (commonly referred to as “high yield securities” or “junk bonds”) may involve a greater risk of non-payment of interest or principal than higher rated bonds. Loans (including loan assignments, loan participations and other lending instruments) involve other risks, including the risk of insolvency of the lending bank or other intermediary. Loans may be unsecured or not fully secured, may have resale restrictions, and sometimes trade rarely in the secondary market.
About Macquarie Asset Management
Macquarie Asset Management is a global asset manager that aims to deliver positive impact to everyone. Recognized by institutions, pension funds, governments and individuals for managing over $579 billion in assets worldwide,1 we provide access to specialist investment expertise across a range of capabilities, including infrastructure, green investments and renewable energy, real estate, agriculture and natural assets, asset finance, private credit, equities, fixed income and multi-asset solutions.
Advisory services are provided by Delaware Management Company, a series of Macquarie Investment Management Business Trust, a registered investment adviser. Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, financing, banking, advisory and risk and capital solutions for debt, equities and commodities. Founded in 1969, Macquarie Group employs over 18,000 people in 33 markets and is listed on the Australian Securities Exchange. For more information on Macquarie’s Delaware Funds®visit delawarefunds.com or call 800 523-1918.
With the exception of Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any entity of the Macquarie group mentioned in this press release is not an authorized depository institution for the purposes of the Banking Act 1959 (Commonwealth from Australia). The obligations of these other Macquarie group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or provide any other assurance with respect to the obligations of such other Macquarie group entities. In addition, if this press release relates to an investment, (a) the investor is subject to investment risk, including delays in repayment and loss of income and invested capital and (b) none of Macquarie Bank or any other entity of the Macquarie group does not guarantee any particular rate of return or performance of the investment, nor do they guarantee the return of principal in respect of the investment.
1 As of March 31, 2022
© 2022 Macquarie Management Holdings, Inc.
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