March 20, 2013

Investing in Asian Fixed Income: Growth & Stability

Capital Link Webinar Series

Adam McCabe, Senior Portfolio Manager Aberdeen Asset Management Asia

In the United States, Aberdeen Asset Management (AAM) is the marketing name for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset Management Ltd and Aberdeen Asset Management Asia Ltd, each of which is wholly owned by Aberdeen Asset Management PLC. "Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. A copy of the prospectus for Aberdeen Asia-Pacific Income Fund, Inc. that contains this and other information about the fund may be obtained by calling 800-522-5465. Please read the prospectus carefully before investing. Investing in funds involves risk, including possible loss of principal.

www.aberdeen-asset.us/Asia

Agenda

• The merits of investing in Asia

• Investment philosophy and outlook

• Aberdeen Asia-Pacific Income Fund, Inc.

• Appendix: Aberdeen in Asia

1

The merits of investing in Asia

Key arguments

• Asian governments are solvent

- Aberdeen believes Asian fixed income merits a distinct allocation in a diversified fixed income portfolio

• Asia’s currencies are undervalued and set to appreciate. Why?

- The International Monetary Fund estimates suggest Asian currencies are 40% undervalued on average

- To help fight inflation

- To help the switch to domestic demand-led growth by raising real incomes

- Asia is de-dollarizing/the renminbi-fication of Asia

- Domestic political pressures

- In our opinion, Asian investors are increasingly investing in Asia, rather than in the West

• Aberdeen believes:

- Asia is too important to ignore in investor portfolios

- Asia is already 27% of global GDP and will hit 49% by 2050*

- Asian investors are increasingly investing in Asia, rather than the West

- Asia is barely represented in major bond indices

- Asia’s local currency bond yields are reasonable and markets are investable

3 * Source: Citibank forecasts, Mar 2012 Forecasts are used here for illustrative purposes only. No assumptions regarding future performance should be made. Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially.

Stability is in Asia

• Asia’s policymakers have more flexibility to respond to challenging economic conditions

• For example, we believe weak global growth can be balanced with much needed infrastructure investment

4

Projected government debt

Source: Citigroup Global Markets – “Asia Macro View”, 1 Feb 12 Forecasts are used here for illustrative purposes only. No assumptions regarding future performance should be made. Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially

0

50

100

150

200

250

300

SL PK BR ID PH CH IN KR MX ZA VN TW MY US JP UK

% G

ross

Dom

estic

Pro

duct

2007 (Pre Crisis) 2010 2014 (F)

Most debt increase Less debt increase

SL: Slovenia; PK: Pakistan; BR: Brazil; ID: Indonesia; PH: Philippines; CH: China; IN: India; KR: Korea; MX: Mexico; ZA: South Africa; VN: Vietnam; TW: Taiwan Province of China; MY: Malaysia; US: United States; JP: Japan; UK: United Kingdom;

Instability is in the West

5

Source: Goldman Sachs Global ECS Research, IMF, 31 Jul 12 *’WGBI - World Government Bond Index is a market capitalization weighted bond index consisting of the government bond markets of multiple countries. Country eligibility is determined based upon market capitalization criteria. The index includes all fixed-rate bonds with a remaining maturity of one year or longer and with amounts outstanding of at least the equivalent of US$25 million. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. For illustrative purposes only. Generally the credit ratings range from AAA (highest) to D (lowest). Where bonds held in the fund are rated by multiple rating agencies (Moody’s and S&P), the lower of the ratings is used. If unrated, bonds judged to be of equivalent quality by the Investment Manager. This may not be consistent with data from the benchmark provider. Quality distribution represents ratings of the underlying securities held within the Fund, and not ratings of the Fund itself.

Gross Domestic Product (GDP) share of current WGBI* constituents that are AAA rated

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0Ja

n 90

Jul 9

1

Jan

93

Jul 9

4

Jan

96

Jul 9

7

Jan

99

Jul 0

0

Jan

02

Jul 0

3

Jan

05

Jul 0

6

Jan

08

Jul 0

9

Jan

11

Jul 1

2

Asia is growing

• By 2050 Asia is forecast to represent 49% of world GDP

• This compares to approximately 27% of world GDP today

6

2011

Source: Citi Aug 12; GDP measured in 2010 PPP USD Forecasts are used here for illustrative purposes only. No assumptions regarding future performance should be made. Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially

2050f Africa

4%

Europe 22%

Latin America 9%

Japan 6% Developing Asia

29%

North America

21%

Others 9%

Africa 12%

Europe 9%

Latin America

8%

Japan 2%

Developing Asia 49%

North America

11%

Others 9%

The world in 2050

• According to Citi forecasts, by 2050 three of the four largest economies in the world will be in Asia.

• India and China will both be twice the size of the US economy

• The four richest countries in the world will be in Asia (as measured by GDP per capita)

7

Source: Citi Investment Research and Analysis, as of 31 Mar 11 Forecasts are used here for illustrative purposes only. No assumptions regarding future performance should be made. Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially Purchasing Power Parity (PPP) is An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing

Rank Country 2050 Rank Country 2050

1 India 86 1 Singapore 137,7102 China 80 2 Hong Kong 116,6393 US 39 3 Taiwan 114,0934 Indonesia 14 4 South Korea 107,7525 Brazil 12 5 US 100,8026 Nigeria 10 6 Saudi Arabia 98,3117 Russia 8 7 Canada 96,3758 Mexico 7 8 UK 91,1309 Japan 6 9 Switzerland 90,95610 Egypt 6 10 Austria 90,158

Top 10 Largest Economies in the world (in trillion 2010 PPP* USD)

Gross Domestic Product per capita (2010 PPP USD) 2050

Note that GDP figures are measured in 2010 PPP USD

Philosophy and outlook

Aberdeen’s investment philosophy

• Asian fixed income markets are not perfectly efficient

• To maximise performance we need to:

- focus on the entire regional investment universe, and

- implement a diversified range of investment strategies

- be benchmark aware, not benchmark driven

• Successful investment in the Asian region requires:

- A global perspective

- Strategic fundamental macroeconomic research

- An understanding of the region’s political and policy influences,

- An understanding of market technicals and market idiosyncrasies, and

• Traditional risk management tools do not always work in the Asian markets:

- We construct our own forward looking expectations of risk and volatility

9

Outlook

Aberdeen believes:

• Extraordinary policy moves in the US and Europe have substantially reduced systemic risks

• Growth conditions in Europe are expected to remain fragile and susceptible to austerity related measures

• US recovery will likely be tepid although encouraging signs have begun to emerge in the housing sector. While fiscal cliff concerns have been pushed out temporarily, gridlock and failure to resolve fiscal issues will result in headwinds to growth

• Chinese recovery progress is expected to be sustained as the government’s pro-growth and monetary stance provide support to domestic demand

• Cyclically economic conditions across the region have improved

• Bond yields have likely reached the low point for this cycle, but capital flows will remain supportive. Asian currencies are to continue to gradually appreciate

10

Risks

Aberdeen believes:

• Excessive austerity measures in Eurozone derail growth recovery

• Lingering US fiscal cliff issues: can was kicked down the road to March raising the possibility of heightened volatility on speculation of repeated fiscal resolution gridlock when Congress meets again

• Political uncertainty: North Korea/South Korea relations; Malaysian elections

• Stronger capital inflows into the Asian region prompt excessive/draconian policy reaction to stem rapid currency appreciation

• Stronger than expected Asian growth recovery lead to emergence of inflationary pressures

11

Lower growth and inflation expectations

Asia ex Japan GDP and inflation forecasts China GDP and inflation

3.5

3.6

3.7

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3.9

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4.1

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4.3

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4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Jan-

11

Apr

-11

Jul-1

1

Oct

-11

Jan-

12

Apr

-12

Jul-1

2

Oct

-12

Asia ex Japan 2012 GDP (lhs) Asia ex Japan 2013 GDP (lhs)Asia ex Japan CPI (rhs) Asia ex Japan CPI (rhs)

2.5

2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

4.3

7.5

7.7

7.9

8.1

8.3

8.5

8.7

8.9

9.1

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11

Apr

-11

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1

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-11

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12

Apr

-12

Jul-1

2

Oct

-12

China 2012 GDP (lhs) China 2013 GDP (lhs)

China inflation (rhs) China inflation (rhs)

• Lower growth and inflation forecasts as external weakness weigh in economic growth in Asia.

Source: Consensus Economics, Aberdeen Asset Management, Jan 4, 2013 Data is from Jan 2011- Dec 2012 Forecasts are used here for illustrative purposes only. No assumptions regarding future performance should be made. Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially Left hand side: GDP - Gross Domestic Product; CPI - Consumer Price Index Right hand side: GDP - Gross Domestic Product For illustrative purposes only 12

• China’s growth recovery track is expected to be sustained as domestic conditions continue to benefit from supportive policy measures.

China’s economic outlook improving

• Growth should continue to moderate going into 2013 though much still depends upon developments in Europe and the US

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30

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65N

ov 0

7

Mar

08

Jul 0

8

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Jul 0

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Jul 1

0

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Jul 1

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Nov

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Jul 1

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Nov

12

China Manufacturing PMIChina New Export Orders PMI

-20%

-10%

0%

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60%

70%

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07

Mar

08

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Urban FAI36% wgt-Manufacturing26% wgt-Real Estate7% wgt-Transportation, Storage and Post7% wgt-Water Conservancy, Environment, and Public Facilities4.5% wgt-Electricity, Heat Power, Gas and Water

Source: Bloomberg, Nov 12 PMI – Purchasing Managers Index For illustrative purposes only

Source: Bloomberg, Oct 12 FAI – Fixed asset investment For illustrative purposes only

13

... allowing a shift in monetary policy focus

Policy rates Policy rates

Source: Bloomberg Dec 31, 2012. Note: For China we use the 1yr working capital base lending rate and for Hong Kong the 3M HKD interbank rate For illustrative purposes only

14

Asian currencies maintain structural appreciation

JPMorgan Asian Currency Index

Source: Bloomberg, Dec 31, 2012. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. JPMorgan Asia Currency Index is made up of the following currencies: CNY (37.9%), HKD (8.7%), INR (7.8%), IDR (3.0%), KRW (14.3%), MYR (5.2%), PHP (1.8%), SGD (10.0%), TWD (6.3%) and THB (4.9%). Index country weights are as at 30 Sep 12.

• Currency appreciation has increasingly been used as part of the policy normalization process • Used to offset imported sources of inflation • Help facilitate the shift towards domestic demand as a core pillar of growth

15

Currency exposure Importance of risk management

Looming Risks (Asian credit spreads vs KRW) Allocation to high beta* Asian currencies (vs. low beta)

Source: Aberdeen Asset Management, 30 Sep 12 The Jeffries Active Convertible Index (JACI) is a price-weighted, total return composition index of convertible bonds or convertible preference shares with public distribution with a minimum issue size of $USD200 million or equivalent in other currencies. For illustrative purposes only

Source: Aberdeen Asset Management, 30 Sep 12 *High beta Asian currencies include KRW, SGD, MYR, PHP, THB, INR, IDR, TWD For illustrative purposes only

1000

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Jan 10 Sep 10 May 11 Jan 12 Sep 12

Asian credit (JACI) SPREAD KRWSp

read

to U

ST (b

ps)

KRW

/US$

-10%

-5%

0%

5%

10%

15%

20%

Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12

16

Aberdeen Asia-Pacific Income Fund, Inc.

• Net Assets: US$2,042.3 million

• NAV per share: $7.71

• Market price: $7.86

• Premium to Net Asset Value: 1.95%

• Leverage: $600 million

• Expense ratio (fiscal year ended October 31, 2011): 1.01%

• Managed by Aberdeen Asset Management Asia Limited and Aberdeen Asset Management Limited since 2000

• Team based in offices around the world including Singapore and Sydney

• For more information about the Fund, visit www.aberdeenfax.com

Aberdeen Asia-Pacific Income Fund, Inc. Key facts as of January 31, 2013

The Fund’s investment objective is to seek current income by investing primarily in Australian and Asian debt securities; the

Fund may also achieve incidental capital appreciation.

Leverage potentially amplifies certain risks such as higher volatility of net asset value and share price, which increase the risk of loss under adverse market conditions.

18

NAV Cumulative Annualized

Since inception (April 1986) 1,038.2 9.5

Ten years 183.5 11.0

Five years 60.5 9.9

Three years 40.3 11.9

One year 7.7

Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted. All return data assumes reinvestment of all dividend and capital gain distributions. As of fiscal year ended October 31, 2012 the Fund had an expense ratio of 1.01%. The Fund is subject to investment risk, including the possible loss of principal. Returns for periods less than one year are not annualized.

Performance is net-of-fees in U.S. dollars. Source: Aberdeen Asset Management, January 2013

Market price Cumulative Annualized

Since inception 1,060.4 9.6

Ten years 214.7 12.2

Five years 83.1 12.9

Three years 48.5 14.1

One year 9.9

As of January 31, 2013

Aberdeen Asia-Pacific Income Fund, Inc. Performance summary

19

India 4.7%

Aberdeen Asia-Pacific Income Fund, Inc. Geographic exposure

Source: Aberdeen Asset Management, as of 31 Jan 2013 Country allocations are subject to change. Diversification does not ensure a profit or protect against a loss in a declining market 20

S. Korea 9.1% Philippines

6.4%

Malaysia 6.2%

Singapore 3.2%

Thailand 5.6%

Hong Kong 5.0%

Indonesia 5.8%

Australia & New Zealand 40.5%

China 8.0%

Other 5.3% Sri Lanka

0.2%

Aberdeen Asia-Pacific Income Fund, Inc. Sector allocation

Source: Aberdeen Asset Management, as of Jan 31, 2013 Sector allocations are subject to change. Diversification does not ensure a profit or protect against a loss in a declining market 21

Government 40.6%

Corporate 37.5%

Supranationals 4.6%

Short term 1.6%

MBS 0.5%

State 15.2%

Conclusion

• Asia is poised for growth. The region, which now accounts for 27% of world gross domestic product (GDP), is expected to contribute almost half of global GDP by 2050.*

• Forecasts and estimates are consensus opinion and actual events or results may differ materially.

• Aberdeen believes Asian fixed income helps deliver reliable income stream.

• Asian fixed income helps investors diversify away from the economic woes of the West.

• Aberdeen knows Asia. We invest across the region from nine offices employing over 350 people.

• Aberdeen Asian fixed income team is composed of macro and credit specialists necessary to identify and exploit investment opportunities across Asia’s diverse fixed income and currency markets.

• For more information on the merits of investing in Asia please visit:

• www.aberdeen-asset.us/Asia

*Source: Citibank, March 2012

22

Appendix Aberdeen in Asia – background and team

Aberdeen Asset Management PLC

• Aberdeen PLC: Publicly traded, founded in 1983 via a management buyout Market capitalization: $6.9 billion*, FTSE 100** company • Employee ownership: Staff owns 5.8%***

Aberdeen PLC

AUM $314.3bn

Fixed Income

AUM $70.3bn

Property

AUM $29.7bn

Equity

AUM $176.1bn

Aberdeen Solutions1

AUM $38.2bn

Aberdeen Asset Management PLC, assets under management as of Dec 31, 2012 1Multi-Manager, Multi-Assets, Indexed Equities, Private Equity, and Fund of Hedge Funds *Source: Factset, Dec 31, 2012 **As of Dec 31, 2012 ***Employee ownership as of Dec 31, 2012. Staff holdings shown fully diluted 24

Regional asset breakdown

Client assets invested in Asia Asia Pacific ex Japan Equity US$93.5bn*^

Japan Equity US$5.8bn*

Asia Pacific Fixed Income US$19.0bn

Asian Property US$1.4bn**

Total US$119.7bn

^ Includes US$13.7bn invested in India

Source: Aberdeen Asset Management, December 31, 2012 * Includes global/regional allocations ** Advised in Singapore For illustrative purposes only

• Experience in a broad range of Asian fixed income capabilities

• Diversified Asian Fixed Income includes USD Asian credit and local currency bonds

Asia Pacific ex Japan Equity

78%

Japan Equity 5%

Asia Pacific Fixed Income

16%

Asian Property 1%

25

Why Aberdeen for Asian fixed income?

• Aberdeen knows Asia. We invest US$119.7bn across the region from nine offices employing over 350 people

• The Aberdeen Asian fixed income team is well resourced and manages approximately US$6.0bn in assets.

• The team is composed of macro and credit specialists necessary to identify and exploit investment opportunities across Asia’s diverse fixed income and currency markets

• The team shares proprietary research and insights with our global EMD, fixed income and equity colleagues

Source: Aberdeen Asset Management, December 31, 2012 26

Investment process – 4 stages

2) Market Forecasts

TOP DOWN ANALYSIS

3) Asset Allocation

1) Fundamental Analysis

4) Portfolio Construction

BOTTOM UP SECURITY SELECTION

27

Important Information

28

Important: The above is strictly for private circulation and information purposes only and should not be considered as an offer, or solicitation, to deal in any of the investments mentioned herein. Aberdeen Asset Management ("AAM") does not warrant the accuracy, adequacy or completeness of the information and materials contained in this document and expressly disclaims liability for errors or omissions in such information and materials. Past performance is not necessarily a guide to the future. Any research or analysis used in the preparation of this document has been procured by AAMI or its affiliates for their own use and may have been acted on for their own purpose. The results thus obtained are made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make his/her own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as he/she may consider necessary or appropriate for the purpose of such assessment. Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice. Neither AAMI nor any of its agents have given any consideration to nor have they made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document. The information herein including any expressions of opinion or forecast have been obtained from or is based upon sources believed by AAMI to be reliable but is not guaranteed as to accuracy or completeness. The information is given without obligation and on the understanding that any person who acts upon it or otherwise changes his position in reliance there on does so entirely at his or her own risk. AAMI reserves the right to make changes and corrections to its opinions expressed in this document at any time, without notice. Any unauthorized disclosure, use or dissemination, either whole or partial, of this document is prohibited and this document is not to be reproduced, copied, made available to others. International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally heightened for emerging market investments. Concentrating investments in the Asia-Pacific region subjects the Fund to more volatility and greater risk of loss than geographically diverse funds. Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase). Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that the Fund will achieve its investment objective. The Jeffries Active Convertible Index (JACI) is a price-weighted, total return composition index of convertible bonds or convertible preference shares with public distribution with a minimum issue size of $USD200 million or equivalent in other currencies. The JPMorgan Asia Currency Index is a spot index of Emerging Asia's most actively traded pairs valued against the U.S. Dollar. The composition of the index is primarily based on trade weights, with an added filter for liquidity that keeps the index abreast of macro and market trends. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.

© 2013, Aberdeen Asset Management Inc.; www.aberdeen-asset.us/cef