IAF vs. ACP

Last updated Jun 3, 2026

IAF (Abrdn Australia Equity Fund Inc) and ACP (abrdn Income Credit Strategies Fund) are both mutual funds - IAF is a Foreign Large Cap Equities fund managed by abrdn, while ACP is a Multisector Bonds fund actively managed by abrdn. Over the past 10 years, IAF returned 8.57%/yr vs 6.16%/yr for ACP. At a 0.31 correlation, their price movements are largely independent. IAF charges 0.02%/yr vs 1.97%/yr for ACP.

Performance

IAF vs. ACP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Abrdn Australia Equity Fund Inc (IAF) and abrdn Income Credit Strategies Fund (ACP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IAF achieves a 4.34% return, which is significantly lower than ACP's 5.21% return. Over the past 10 years, IAF has outperformed ACP with an annualized return of 8.57%, while ACP has yielded a comparatively lower 6.16% annualized return.

IAF

• 1D: 0.89%
• 1M: 1.94%
• YTD: 4.34%
• 6M: 7.08%
• 1Y: 9.28%
• 3Y*: 12.13%
• 5Y*: 2.42%
• 10Y*: 8.57%

ACP

• 1D: -0.19%
• 1M: -0.79%
• YTD: 5.21%
• 6M: 6.93%
• 1Y: 7.07%
• 3Y*: 9.78%
• 5Y*: -0.06%
• 10Y*: 6.16%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IAF vs. ACP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IAF Abrdn Australia Equity Fund Inc	4.34%	14.94%	8.20%	10.40%	-19.44%	27.08%	10.07%	26.57%	-16.80%	30.26%
ACP abrdn Income Credit Strategies Fund	5.21%	6.48%	4.81%	19.27%	-22.87%	6.65%	7.51%	26.93%	-17.64%	15.60%

Correlation

The correlation between IAF and ACP is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.32
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	0.31

The correlation between IAF and ACP shifts across timeframes, from 0.22 (1 year) to 0.33 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

IAF vs. ACP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IAF

IAF Risk / Return Rank: 6
IAF Sharpe Ratio Rank: 6
IAF Sortino Ratio Rank: 7
IAF Omega Ratio Rank: 7
IAF Calmar Ratio Rank: 6
IAF Martin Ratio Rank: 6

ACP

ACP Risk / Return Rank: 7
ACP Sharpe Ratio Rank: 7
ACP Sortino Ratio Rank: 7
ACP Omega Ratio Rank: 7
ACP Calmar Ratio Rank: 7
ACP Martin Ratio Rank: 7

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IAF vs. ACP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Abrdn Australia Equity Fund Inc (IAF) and abrdn Income Credit Strategies Fund (ACP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	IAF	ACP	Difference
Sharpe ratio Return per unit of total volatility	0.53	0.62	-0.09
Sortino ratio Return per unit of downside risk	0.85	0.95	-0.10
Omega ratio Gain probability vs. loss probability	1.10	1.12	-0.01
Calmar ratio Return relative to maximum drawdown	0.64	0.71	-0.07
Martin ratio Return relative to average drawdown	1.76	2.04	-0.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IAF vs. ACP - Sharpe Ratio Comparison

The current IAF Sharpe Ratio is 0.53, which is comparable to the ACP Sharpe Ratio of 0.62. The chart below compares the historical Sharpe Ratios of IAF and ACP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IAF	ACP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.53	0.62	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	-0.00	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.38	0.29	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.20	+0.01

Drawdowns

IAF vs. ACP - Drawdown Comparison

The maximum IAF drawdown since its inception was -67.68%, which is greater than ACP's maximum drawdown of -51.03%. Use the drawdown chart below to compare losses from any high point for IAF and ACP.

Drawdown Indicators

	IAF	ACP	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-51.03%	-16.65%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-10.51%	-5.67%
Max Drawdown (3Y) Largest decline over 3 years	-23.64%	-18.97%	-4.67%
Max Drawdown (5Y) Largest decline over 5 years	-33.95%	-38.83%	+4.88%
Max Drawdown (10Y) Largest decline over 10 years	-43.93%	-51.03%	+7.10%
Current Drawdown Current decline from peak	-6.90%	-5.58%	-1.32%
Average Drawdown Average peak-to-trough decline	-22.82%	-11.12%	-11.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.85%	3.64%	+2.21%

Volatility

IAF vs. ACP - Volatility Comparison

Abrdn Australia Equity Fund Inc (IAF) has a higher volatility of 5.86% compared to abrdn Income Credit Strategies Fund (ACP) at 4.35%. This indicates that IAF's price experiences larger fluctuations and is considered to be riskier than ACP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IAF	ACP	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.86%	4.35%	+1.51%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	9.32%	+4.96%
Volatility (1Y) Calculated over the trailing 1-year period	17.59%	11.36%	+6.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.58%	17.06%	+5.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.72%	21.08%	+1.64%

IAF vs. ACP - Expense Ratio Comparison

IAF has a 0.02% expense ratio, which is lower than ACP's 1.97% expense ratio.

Dividends

IAF vs. ACP - Dividend Comparison

IAF's dividend yield for the trailing twelve months is around 11.43%, less than ACP's 17.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACP abrdn Income Credit Strategies Fund	17.55%	17.19%	19.72%	17.65%	17.70%	11.76%	12.73%	12.27%	12.60%	10.26%	10.72%	12.69%
IAF Abrdn Australia Equity Fund Inc	11.43%	11.30%	11.69%	11.32%	12.53%	10.25%	9.68%	10.54%	13.26%	10.05%	11.99%	14.31%

Frequently Asked Questions

Can I hold both IAF and ACP in my portfolio?

IAF and ACP have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IAF or ACP?

IAF has higher volatility (5.86%) compared to ACP (4.35%). In terms of maximum drawdown, IAF dropped -67.68% vs ACP's -51.03%.

Which has better risk-adjusted returns?

ACP currently has the higher Sharpe Ratio (0.62 vs 0.53), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.