Aberdeen Global Income Fund, Inc. (NYSE AMEX: FCO)

Fund Managers’ Monthly Report

July 2010

• U.S. Treasury yields fell by up to 0.40% in the 7-to-10-year sector in June. Weakness in U.S. economic data, a sharp correction in equities as risk premiums on sovereign issues rose in Europe, and wider credit spreads combined to create a flight-to-quality which pushed the yield on the 10-year note below 3% for the first time since April 2009.
• The main focus for the UK gilt market during June was the emergency budget. The measures that were announced were largely as expected, with the emphasis very much focused on debt reduction. Planned gilt sales in 2010-11 were significantly reduced.
• Emerging market debt gained ground in June after falling in May.
• The Fund remains positioned with an overall 70%/30% asset mix in developed and emerging markets, respectively.
• Looking ahead, we believe that growth will slow in the second half of 2010, reflecting less supportive financial conditions, a sluggish labor market and a reduced contribution from inventories. With the U.S. Federal Reserve likely to maintain its highly accommodative policy into 2011 and the yield curve remaining very steep, we feel that long-term yields may decline further from their current levels.