Annual Financial Report

RNS Number : 2860E

Aberdeen Latin American Inc Fd Ltd

05 November 2020

ABERDEEN LATIN AMERICAN INCOME FUND LIMITED

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Legal Entity Identifier (LEI): 549300DN623WEGE2MY04

STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS

Investment Objective

The investment objective of the Company is to provide Ordinary Shareholders with a total return, with an above average yield, primarily through investing in Latin American securities.

Gearing

The Board considers that returns to Ordinary Shareholders can be enhanced by the judicious use of borrowing. The Board is responsible for the level of gearing in the Company and reviews the position on a regular basis. Pursuant to the level of gearing set by the Board, the Company may borrow up to an amount equal to 20% of its net assets, calculated at the time of drawing. The Company will not have any fixed, long-term borrowings.

Risk Diversification

The Company has a diversified portfolio consisting primarily of equities, equity-related and fixed income investments, with at least 25% of its gross assets invested in equity and equity-related investments and at least 25% of its gross assets invested in fixed income investments. The Company's investment policy is flexible, enabling it to invest in all types of securities, including (but not limited to) equities, preference shares, debt, convertible securities, warrants, depositary receipts and other equity-related securities.

Management

During the financial year, the Company was managed by Aberdeen Private Wealth Management Limited ("APWML"), which is registered with the Jersey Financial Services Commission ("JFSC") for the conduct of fund services business. Subsequent to the end of the Company's financial year APWML merged on 30 September 2019 with Aberdeen Standard Capital International Limited ("ASCIL"), a wholly owned subsidiary of Standard Life Aberdeen PLC, by way of a merger process set out in the Companies (Jersey) Law 1991. Following the merger, ASCIL is the ongoing entity and the new contracting party to all of APWML's previous agreements and became the Company's Manager and Company Secretary. Following the merger of APWML and ASCIL, the investment management of the Company continues to be delegated to Aberdeen Asset Managers Limited ("AAML"), a wholly owned subsidiary of Standard Life Aberdeen plc. Aberdeen Standard Investments is a brand of the investment businesses of the merged entity.

References throughout this document to Aberdeen Standard Investments refer to APWML, ASCIL and AAML and their responsibilities as Manager and Investment Manager respectively to the Company.

FINANCIAL HIGHLIGHTS

Ordinary share price total return^{A}		Earnings per Ordinary share (revenue)		Net asset value total return^{A}
	-24.4%		2.21p		-27.5%
2019	+19.9%	2019	4.27p	2019	+22.4%

Dividends per Ordinary share		Benchmark total return		Discount to net asset value per Ordinary share^{AB}
	3.50p		-22.9%		13.2%
2019	3.50p	2019	+17.4%	2019^{B}	16.0%

{A} Considered to be an Alternative Performance Measure
{B} At 31 August.
Source: Aberdeen Standard Investments, Morningstar, Russell Mellon, Lipper & JPMorgan

	31 August 2020	31 August 2019	% change
Total assets (£'000)	37,855	53,755	-29.6
Total equity shareholders' funds (net assets) (£'000)	32,355	47,755	-32.2
Market capitalisation (£'000)	28,071	40,136	-30.1
Ordinary share price (mid market)	49.15p	69.20p	-29.0
Net asset value per Ordinary share	56.65p	82.34p	-31.2
Discount to net asset value per Ordinary share^{AB}	13.24%	15.95%
Net gearing ^{AB}	16.05%	11.41%

Dividends and earnings
Total (loss)/return per Ordinary share	(22.26p)	15.20p
Earnings per Ordinary share (revenue)	2.21p	4.27p	-48.2
Dividends per Ordinary share	3.50p	3.50p
Dividend cover^{AB}	0.63 times	1.22 times
Revenue reserves^{B} (£'000)	1,962	2,704

Operating costs
Ongoing charges ratio^{ABC}	2.00%	2.00%

{A} Considered to be an Alternative Performance Measure.
{B} Excludes payment of fourth interim dividend of 0.875p (2019 - 0.875p) per Ordinary share equating to £500,000 (2019- £507,000) as this was made after the year end.
{C} Details of a cap on the ongoing charges ratio can be found in notes 6 and 17 to the financial statements.

CHAIRMAN'S STATEMENT

Overview

Any optimism fuelled by the signing of an initial US-China deal last December, which seemingly would have prevented a global trade war, vanished as the Covid-19 virus pandemic ("Covid-19") swiftly spread across the world. With healthcare systems in many regions overwhelmed, governments locked down their economies to contain the virus. This action, however, proved to be a double-edged sword as many key industries were badly hurt as business activity ground to a halt.

As more local businesses succumbed and consequently job losses mounted, central banks cut interest rates in quick succession, while governments unleashed massive amounts of fiscal stimulus in efforts to cushion the financial impact on the poor and unemployed.

Although Covid-19 arrived in Latin America later than other regions it still hit very hard. Looking at some key markets within the continent, the Brazilian administration's initial poor management of the pandemic caused Latin America's largest economy to report the highest number of cases. Political infighting exacerbated the situation, with President Jair Bolsonaro's controversial handling of the Covid-19 crisis forcing two health ministers to quit in quick succession. However, the government's subsequent swift action in rolling out relief packages, among the most extensive in the region, coupled with the central bank's aggressive interest rate cuts helped lessen the blow to faltering growth.

Meanwhile, Chile's relatively sound economic fundamentals, along with the government's prompt action in limiting the contagion, helped the country maintain some semblance of stability. But it remains to be seen if such measures can hold up in the face of a prolonged onslaught by Covid-19.

Conversely, Mexico's economy, already in a weakened state, was further hurt by social-distancing measures as well as the muted fiscal response from President Andres Manuel Lopez Obrador's administration. Fearing the financial repercussions, the authorities allowed businesses to reopen even before infection rates showed any significant signs of ebbing.

Elsewhere, Argentina has had to deal with the twin challenges of negotiating a palatable debt restructuring plan with international creditors, while combatting rising infection rates in spite of lockdowns. I am heartened to see that at least the former has reached a favourable resolution for now.

Results and Dividends

Against an extremely challenging background globally, the Company's NAV Total Return was -27.5% (2019:+22.4%), lagging the benchmark's -22.9% (2019: +17.4%) return. While the result is clearly disappointing at first glance, I would like to emphasise that your Manager has maintained its investment strategy and continues to have strong conviction in the Company's underlying portfolio while offering shareholders an attractive yield from a mix of good quality companies and bonds. A more detailed discussion can be found in your Manager's report.

The ordinary share price fell from 69.2p at 31 August 2019 to 49.2p per share although the share price discount to NAV narrowed from -16.0% at 31 August 2019 to -13.2% as at the financial year end.

The earnings per share for the year ended 31 August 2020 were 2.21p (2019: 4.27p), reflecting the severe impact of the pandemic. The Company has maintained four interim dividends of 0.875p per share (2019: 0.875p) in respect of the 12 month financial period bringing the total level of dividends for the year to 3.5p per share (2019: 3.5p). As reported during the year, the Board is aware of the importance of income to the Company's shareholders, particularly during times of prolonged market stress and has maintained the dividend. Whilst there has been a clear impact to earnings resulting from Covid-19, the Directors have previously noted the accumulated revenue reserve. One of the benefits of the investment company structure is that the Company may use accumulated reserves to maintain distributions to shareholders where there is a shortfall in earnings. To finance the dividends during the year, the Company paid £742,000 (2019: nil) from its revenue reserves. Following the payment of dividends made during the financial year, the Company continued to carry forward £1,962,000 (2019: £2,704,000) in its revenue reserve. After accounting for the fourth interim dividend paid after the year end the revenue reserve held the equivalent of over 70% of a full year's current distribution.

The Board is pleased that the Manager continues to support the Company to ensure that its ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually at 31 August. To the extent that the OCR exceeds 2.0%, the Manager continues to rebate part of its fees in order to reduce the ratio down to 2.0%. Subsequent to the year end, a sum of £83,000 had been repaid by the Manager to the Company in order to maintain the OCR at 2.0%.

Portfolio

During the year, the allocation between equities and bonds was adjusted. At the financial year end, the portfolio comprises 59.5% equities and 40.5% bonds (2019: 59.1% equities, 40.9% bonds). The Board and Manager will continue to keep this portfolio split under review to seek to exploit market opportunities.

Share Capital Management

During the year, the Company purchased 887,000 ordinary shares for cancellation at a total cost of £624,000, all at a discount to NAV. This resulted in an enhancement of 0.19% in NAV per share. In light of ongoing market volatility arising from the Covid-19 pandemic, and the lack of meaningful impact on the discount during these extraordinary times, the Board reviewed its share buyback programme during the financial year. The Company has not bought back any shares since March 2020 but the Company will make selective use of buybacks, subject to prevailing market conditions and having regard to the size of the Company, where it would be in the best interests of shareholders to do so. At the time of writing, the Company's share price discount to NAV is 8.3%.

Gearing

The Company refinanced its £8 million multi-currency revolving credit facility agreement with Scotiabank (Ireland) Designated Activity Company during the financial year. In August 2020, the Company entered into a one year unsecured revolving multi-currency loan facility with Scotiabank Europe plc expiring on 14 August 2021. At the year end £5,500,000 was drawn down (2019 - £6,000,000). The Board will continue to monitor the level of gearing under recommendation from the Manager and in light of the market conditions.

Board Changes

During the year, the Board, led by the Nomination Committee, conducted a search for a new independent non-executive director using the services of an independent recruitment consultant. The Directors were delighted to welcome Howard Myles to the Board on 1 October 2020. Howard brings a wealth of knowledge in relation to closed-end funds including experience of the Latin American region. George Baird retired as a Director at the AGM in December 2019 and Heather MacCallum assumed the role of Audit Committee Chair.

Service Provider Changes

The Board also made changes to the Company's service providers during the year under review. The Board appointed Nplus1 Singer Advisory LLP as its sole corporate broker in August 2020. The Company, led by the Audit Committee, also undertook a tender for its required audit services. Following the conclusion of the tender, the Board approved the appointment of PricewaterhouseCoopers CI LLP ("PwC") as the Company's auditor. PwC has undertaken the audit of the Company's Financial Statements and shareholders will be invited to vote upon their appointment at the Company's Annual General Meeting. The Board would like to formally thank Ernst & Young LLP, the Company's auditor since launch in 2010, for their support over the years.

Annual General Meeting

This year's Annual General Meeting will be held on Thursday, 10 December 2020 at 10:00am at the offices of Aberdeen Standard Investments, 1st Floor, Sir Walter Raleigh House, 48-50 Esplanade, St Helier, Jersey JE2 3QB.

In light of the current Government Guidelines surrounding the Covid-19 pandemic, and current and expected future social distancing requirements, only the formal business set out in the Notice of the Meeting will be considered, with no presentation by the Investment Manager and no refreshments. At the time of writing, it is likely that Members will be restricted from attending the AGM in person or by attorney or by corporate representative. Therefore, the Board encourages all shareholders to exercise their votes in respect of the meeting in advance to ensure that votes are registered and counted at the meeting.

The Board welcomes questions from our shareholders and, given the format and prevailing circumstances, I would ask shareholders to submit questions to the Board prior to the AGM, and in any event before Monday, 7 December 2020. The Board or the Investment Manager will respond to all questions received. You may submit questions to the Board by email to Latin.American@aberdeenstandard.com.

The Board will continue to monitor Government Guidelines around social distancing in relation to Covid-19 and will update shareholders on any changes to the arrangements for the AGM. However, should social distancing measures be relaxed, we would urge all shareholders to take the health and well-being of their fellow investors into account when deciding whether or not to attend the AGM. I trust that shareholders will be understanding and supportive of this approach. In future, the Board expects to revert back to its normal AGM proceedings and looks forward to welcoming shareholders in person.

Articles of Association

At the Company's Annual General Meeting, one of the resolutions being proposed relates to a change to the Company's Articles of Association ("the Articles"). The change will enable the Company to hold virtual and hybrid general meetings (including annual general meetings) in the future. The changes proposed are being sought in response to challenges posed by government restrictions on social interactions as a result of Covid-19, which have made it impossible for shareholders to attend physical general meetings.

The Board is committed to ensuring that future general meetings (including AGMs) incorporate a physical meeting when law and regulation permits and where shareholders can meet with the Board face to face. The potential to hold a general meeting through wholly electronic means is intended as a solution to be adopted as a contingency to ensure the continued smooth operation of the Company in extreme operating circumstances where physical meetings are prohibited. The Company has no present intention of holding a wholly electronic general meeting but wants to be prepared for the future.

Outlook

The near-term outlook for Latin America remains challenging. Many countries face the difficult decision of whether to keep their economies open to stave off a deeper recession or to re-impose draconian social-distancing measures and localised lockdowns amid elevated numbers of Covid-19 cases. Worsening relations between the world's two largest economic giants, the US and China, also pose a substantial danger to both financial markets and international trade as they engage in tit-for-tat punitive measures. That said, in Brazil, the Bolsonaro administration's fiscal stimulus has provided ammunition to better cushion the impact of the virus on its citizens. Subsequently, continued reforms to ensure fiscal discipline will be needed in light of the massive government spending and rise in debt levels. For Mexico, the ratification of a trade deal by key partners, the US and Canada should help its economy recover in the longer term. Elsewhere, receding coronavirus cases in Chile would allow the government to focus on putting key sectors, such as mining, back on the growth track. And finally, with the successful conclusion of debt restructuring talks in Argentina, more foreign investment could eventually find its way back.

Although Latin America's road to recovery may well be an arduous one, the region is not alone during these pandemic times. I am confident that your Manager's prudent investment approach and on-the-ground presence in the region should help in the selection of good quality investments with robust competitive advantages and exposure to segments of the economy that are still resilient in spite of the pandemic. These companies are likely to deliver steady, risk-adjusted returns over the long-term. Your Manager will continue to capitalise on market volatility to add to high-conviction holdings or introduce new names at appealing valuations seeking to add value for shareholders who at times this year have clearly suffered extreme volatility.

Richard Prosser,

Chairman

4 November 2020

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Investment Objective and Business Model

The Company aims to provide private and institutional investors with exposure to the above average long-term capital growth prospects of Latin America combined with an attractive yield.

The business of the Company is that of an investment company and the Directors do not envisage any change in this activity in the foreseeable future.

Investment Policy and Approach

The Company invests in:

- companies listed on stock exchanges in the Latin American region;

- Latin American securities (such as ADRs and GDRs) listed on international stock exchanges;

- companies listed on international exchanges that derive significant revenues or profits from the Latin American region; and

- debt issued by governments and companies in the Latin American region.

Whilst the Board has provided the Investment Manager with broad investment guidelines in order to ensure a spread of risk, the Company's portfolio is not managed by reference to any benchmark and, therefore, the composition of its portfolio is not restricted by minimum or maximum country, market capitalisation or sector weightings. The Manager follows a bottom-up investment process based on its conviction in individual stocks. Top-down factors are secondary in portfolio construction, with diversification rather than formal controls guiding geographical and sector weights.

The Company may invest, where appropriate, in open-ended collective investment schemes and closed-ended funds that invest in the Latin American region.

Derivative investments may be used for efficient portfolio management and hedging and may also be used in order to achieve the investment objective and to enhance portfolio performance. The Company may purchase and sell derivative investments such as exchange-listed and over-the-counter put and call options on currencies, securities, fixed income, currency and interest rate indices and other financial instruments, purchase and sell financial futures contracts and options thereon and enter into various interest rate and currency transactions such as swaps, caps, floors or collars or credit transactions and credit derivative instruments. The Company may also purchase derivative instruments that combine features of these instruments. The Manager employs a risk management process to oversee and manage the Company's exposure to derivatives. The Manager may use one or more separate counterparties to undertake derivative transactions on behalf of the Company, and may be required to pledge collateral in order to secure the Company's obligations under such contracts. The Manager will assess on a continuing basis the creditworthiness of counterparties as part of its risk management process.

The Company may underwrite or sub-underwrite any issue or offer for sale of investments.

The Board considers that returns to Ordinary Shareholders can be enhanced by the judicious use of borrowing. The Board is responsible for the level of gearing in the Company and reviews the position on a regular basis. Pursuant to the level of gearing set by the Board, the Company may borrow up to an amount equal to 20% of its net assets calculated at the time of drawing. The Company will not have any fixed, long-term borrowings.

The Company may also use derivative instruments for gearing purposes, in which case the investment restrictions will be calculated on the basis that the Company has acquired the securities to which the derivatives are providing exposure.

The Company will normally be fully invested. However, during periods in which economic conditions or other factors warrant, the Company may reduce its exposure to securities and increase its position in cash and money market instruments.

The Company invests and manages its assets, including its exposure to derivatives, with the objective of spreading risk in line with the Company's investment policy.

The Company may only make material changes to its investment policy (including the level of gearing set by the Board) with the approval of Ordinary Shareholders (in the form of an ordinary resolution).

Investment Restrictions

The minimum and maximum percentage limits set out under "Investment Policy and Approach" and "Investment Restrictions" will only be applied at the time of the relevant acquisition, trade or borrowing. No more than 15% of the Company's or the Subsidiary's gross assets will be invested in any one company.

The Company will not invest more than 10%, in aggregate, of the value of its gross assets in other investment companies admitted to the Official List of the Financial Conduct Authority, provided that this restriction does not apply to investments in any such investment companies which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed investment companies admitted to the Official List of the Financial Conduct Authority.

The Company may invest up to 25% of its gross assets in non-investment grade government debt issues (being debt issues rated BB+/Ba1 or lower).

The Company's aggregate gross exposure to derivative instruments will not exceed 50% of its gross assets.

The Company will not acquire securities that are unlisted or unquoted at the time of investment (with the exception of securities which are about to be listed or traded on a stock exchange). However, the Company may continue to hold securities that cease to be listed or quoted if the Investment Manager considers this to be appropriate.

No underwriting or sub-underwriting commitment will be entered into if the aggregate of such investments would exceed 10% of the Company's net assets and no such individual investment would exceed 5% of the Company's net assets.

The Board has adopted a policy that the value of the Company's borrowings or derivatives (but excluding collateral held in respect of any such derivatives) will not exceed 30% the Company's net assets.

Duration

The Company does not have a fixed life or continuation vote.

Benchmark

The Company measures its performance against a composite benchmark index weighted as to 60% MSCI EM Latin America 10/40 Index and 40% JP Morgan GBI-EM Global Diversified (Latin America Carve Out) (both in sterling terms) (the "Benchmark"). The Company does not seek to replicate the Benchmark index in constructing its portfolio and the portfolio is not managed by reference to any index. It is likely, therefore, that there will be periods when the Company's performance will be uncorrelated to any index or benchmark.

Promoting the Company's Success

In accordance with corporate governance best practice, the Board is now required to describe to the Company's shareholders how the Directors have discharged their duties and responsibilities over the course of the financial year following the guidelines set out in the UK under section 172 (1) of the Companies Act 2006 (the "s172 Statement"). This Statement, from 'Promoting the Success of the Company' to "Long Term Investment", provides an explanation of how the Directors have promoted the success of the Company for the benefit of its members as a whole, taking into account the likely long term consequences of decisions, the need to foster relationships with all stakeholders and the impact of the Company's operations on the environment.

The purpose of the Company is to provide private and institutional investors with exposure to the above average long-term capital growth prospects of Latin America combined with an attractive yield. The Company's Investment Objective is disclosed in the Annual Report. The activities of the Company are overseen by the Board of Directors of the Company.

The Board's philosophy is that the Company should operate in a transparent culture where all parties are treated with respect and provided with the opportunity to offer practical challenge and participate in positive debate which is focused on the aim of achieving the expectations of shareholders and other stakeholders alike. The Board reviews the culture and manner in which the Manager operates at its regular meetings and receives regular reporting and feedback from the other key service providers.

Investment trusts, such as the Company, are long-term investment vehicles, with a recommended holding period of five or more years. Typically, investment trusts are externally managed, have no employees, and are overseen by an independent non-executive board of directors. Your Company's Board of Directors sets the investment mandate, monitors the performance of all service providers (including the Manager) and is responsible for reviewing strategy on a regular basis. All this is done with the aim of preserving and, indeed, enhancing shareholder value over the longer term.

Shareholder Engagement

The following table describes some of the ways we engage with our shareholders:

AGM	The AGM ordinarily provides an opportunity for the Directors to engage with shareholders, answer their questions and meet them informally. The next AGM will take place on 10 December 2020 in Jersey. In light of the challenges arising from Covid-19, the Board encourages shareholders to lodge their vote by proxy on all the resolutions put forward.
Annual Report	We publish a full annual report each year that contains a strategic report, governance section, financial statements and additional information. The report is available online and in paper format.
Company Announcements	We issue announcements for all substantive news relating to the Company. You can find these announcements on the website.
Results Announcements	We release a full set of financial results at the half year and full year stage. Updated net asset value figures are announced on a daily basis.
Monthly Factsheets	The Manager publishes monthly factsheets on the Company's website including commentary on portfolio and market performance.
Website	Our website contains a range of information on the Company and includes a full monthly portfolio listing of our investments as well as podcasts by the Investment Manager. Details of financial results, the investment process and Investment Manager together with Company announcements and contact details can be found here: latamincome.co.uk
Investor Relations	The Company subscribes to the Manager's Investor Relations programme.

Other Service Providers

The other key stakeholder group is that of the Company's third party service providers. The Board is responsible for selecting the most appropriate outsourced service providers and monitoring the relationships with these suppliers regularly in order to ensure a constructive working relationship. Our service providers look to the Company to provide them with a clear understanding of the Company's needs in order that those requirements can be delivered efficiently and fairly. The Board, via the Management Engagement Committee, ensures that the arrangements with service providers are reviewed at least annually in detail. The aim is to ensure that contractual arrangements remain in line with best practice, services being offered meet the requirements and needs of the Company and performance is in line with the expectations of the Board, Manager, Investment Manager and other relevant stakeholders. Reviews include those of the Company's custodian, registrar, broker and auditor.

Principal Decisions

Pursuant to the Board's aim of promoting the long term success of the Company, the following principal decisions have been taken during the year:

Portfolio The Investment Manager's Review details the key investment decisions taken during the year and subsequently. The Investment Manager has continued to monitor the investment portfolio throughout the year under the supervision of the Board. The Board has continued to support the Company's mandate and has encouraged the Investment Manager to engage with investee companies on ESG issues, as set out below. A list of the key portfolio changes can be found below. The Management Engagement Committee, on behalf of the Board, has reviewed the continued appointment of the Investment Manager, and the terms of the Management Agreement, and believes that its continued appointment is in the best interests of Shareholders.

Board Appointment The Board has continued to progress its succession plans during the year resulting in the decision to appoint Howard Myles as an independent non-executive Director with effect from 1 October 2020. Further details are provided in the Chairman's Statement. The Board believes that the appointment of Howard Myles benefits Shareholders by ensuring a smooth and orderly refreshment of the Board which serves to provide continuity and maintain the Board's oversight of the Manager.

Gearing The Company utilises gearing in the form of bank debt with the aim of enhancing shareholder returns over the longer term. In August 2020, the Board refinanced its unsecured revolving multi-currency loan facility with Scotiabank Europe plc expiring on 14 August 2021. At the Board's instruction, the Investment Manager sought terms of a number of banks and the Board believes that the terms offered by Scotiabank were the most compelling.

Share Buybacks During the year, the Board bought back Ordinary shares opportunistically in order to manage the discount by providing liquidity to the market.

ESG The Board is responsible for overseeing the work of the Investment Manager and this is not limited solely to the investment performance of the portfolio companies. The Board also has regard for environmental (including climate change), social and governance matters that subsist within the portfolio companies. The Board is supportive of the Investment Manager's pro-active approach to ESG engagement and encourages it, believing that ESG factors put the 'long-term' in long-term investing. More information on the Manager's approach to ESG can be found in the Annual Report.

Audit In accordance with best practice the Audit Committee conducted an audit tender to select a new independent auditor. Having established the needs of the Company, a number of audit firms were invited to tender. Following a detailed review and interview process, PwC was selected. A resolution to formally appoint PwC as the Company's auditor is being proposed at the AGM.

Broker The Board appointed Nplus1 Singer Advisory LLP ("Nplus1 Singer") as its corporate broker during the financial year. The Board believes that Nplus1 Singer has the required skills and experience to provide the Board, and its investors, with strong corporate broking services.

Long Term Investment

The Investment Manager's investment process seeks to outperform over the longer term. The Board has in place the necessary procedures and processes to continue to promote the long term success of the Company. The Board will continue to monitor, evaluate and seek to improve these processes as the Company continues to grow over time, to ensure that the investment proposition is delivered to shareholders and other stakeholders in line with their expectations.

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determine the progress of the Company in pursuing its investment policy. The main KPIs identified by the Board in relation to the Company which are considered at each Board meeting are as follows:

KPI	Description
Net Asset Value ("NAV") Total Return Performance versus Benchmark Index Total Return	The Board considers the Company's NAV total return figures versus the Benchmark to be the best indicator of performance over time and is therefore the main indicator of performance used by the Board. The figures for this year, three years, five years and since launch are set out in the Annual Report.
Share Price Discount/ Premium to NAV per Ordinary Share	The discount/premium relative to the NAV per share represented by the share price is closely monitored by the Board. The objective is to avoid large fluctuations in the discount relative to similar investment companies investing in the region by the use of share buy backs subject to market conditions. A graph showing the share price discount/premium relative to the NAV is shown in the Annual Report.
Ordinary Share Price Total Return Performance	The Board also monitors the price at which the Company's shares trade relative to the Benchmark on a total return basis over time. A graph showing the total NAV return and the share price performance against the comparative index is shown in the Annual Report.
Dividends per Ordinary Share	The Board's aim is to provide shareholders with an attractive yield. Dividends paid in 2019 and 2020 are set out in the Annual Report.

Further commentary on the Company's performance is contained in the Chairman's Statement and Investment Manager's Review and further explanation of the terms is provided in the Glossary in the Annual Report.

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has carried out a robust assessment of the risks and uncertainties facing the Company at the current time in the table below together with a description of the mitigating actions taken by the Board. The Board has also identified emerging risks through a process of evaluating which of the principal risks increased materially during the year and / or, through market intelligence, are expected to grow significantly. The principal risks associated with an investment in the Company's shares are published monthly on the Company's factsheet and they can be found in the Pre-Investment Disclosure Document published by the Manager, both of which are on the Company's website. The Board reviews the risks and uncertainties faced by the Company in the form of a risk matrix and heat map annually and a summary of the principal risks are set out below.

The key, principal uncertainty for the Company emerging during the second half of the Company's financial year was the outbreak of the Covid-19 pandemic ("Covid-19") which caused significant economic disruption and contributed to global stock market volatility. The longer term effects of Covid-19 on the Latin American region are as yet unknown. From an operational perspective, the Manager, on behalf of the Board, sought assurances from the Company's key service providers, as well as from its own operations, that they had invoked business continuity procedures and appropriate contingency arrangements to ensure that they remain able to meet their contractual obligations to the Company.

In carrying out the assessment, the Board also considered the uncertainty arising from the end of the transition period on 31 December 2020 for the UK leaving the EU ("Brexit"). Overall, the Board does not expect the Company's business model, over the longer term, to be materially affected by Brexit.

Description	Mitigating Actions
Investment strategy and objectives - the setting of an unattractive strategic proposition for the Company and the failure to adapt to changes in investor demand may lead to the Company becoming unattractive to investors, a decreased demand for Ordinary shares and a widening discount at which the Ordinary shares trade relative to their NAV	The Board keeps the level of discount at which the Company's Ordinary shares trade as well as the investment objective and policy under review and the Board is updated at each Board meeting on the make up of and any movements in the Shareholder register. The Board considers the Company's strategy regularly and its attractiveness to shareholders
Investment portfolio, investment management - investing outside of the investment restrictions and guidelines set by the Board could result in poor performance and inability to meet the Company's objectives	The Board sets, and monitors, its investment restrictions and guidelines, and receives regular reports which include performance reporting on the implementation of the investment policy, the investment process and application of the guidelines
Financial obligations - the ability of the Company to meet its financial obligations, or increasing the level of gearing, could result in the Company becoming over-geared and therefore unable to take advantage of potential opportunities and result in a loss of value of the Company's Shares	The Board sets a gearing limit to ensure that covenant restrictions in the Company's loan facility are not breached and the Board receives regular updates on the actual gearing levels the Company has reached from the Investment Manager together with the assets and liabilities of the Company and reviews these at each Board meeting.
Financial and regulatory - the financial risks associated with the portfolio could result in losses to the Company. In addition, failure to comply with relevant regulation (including the Companies (Jersey) Law, the Financial Services and Markets Act, the Alternative Investment Fund Managers Directive, Accounting Standards and the FCA's Listing Rules, Disclosure Guidance and Transparency Rules, and Prospectus Rules) may have a negative impact on the Company	The financial risks associated with the Company include market risk, liquidity risk and credit risk, all of which are managed by the Investment Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in note 15 to the financial statements. The Board relies upon Aberdeen Standard Investments to ensure the Company's compliance with applicable regulations and from time to time employs external advisers to advise on specific matters
Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of the Manager) and any control failures and gaps in these systems and services could result in a loss or damage to the Company	The Board receives reports from the Manager on internal controls and risk management at each Board meeting and receives assurances from its significant service providers. Further details of the internal controls which are in place are set out in the Directors' Report in the Annual Report

An explanation of other risks relating to the Company's investment activities, specifically market risk including interest rate risk, foreign currency risk and other price risk, liquidity risk, credit risk, gearing risk and a note of how these risks are managed, is contained in note 15 to the financial statements.

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board formally considers risks and strategy at least annually. The Board considers the Company, with no fixed life, to be a long term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects an appropriate balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years.

In assessing the viability of the Company over the review period the Directors have carried out a robust assessment of the principal risks detailed in the Strategic Report focussing upon the following factors:

- The ongoing relevance of the Company's investment objective in the current environment;

- The demand for the Company's shares evidenced by the historical level of premium and or discount;

- The level of income generated by the Company;

- The liquidity of the Company's portfolio; and,

- The flexibility of the Company's multi-currency loan facility which matures in August 2021 including the financial covenants of the loans. The Directors will aim to agree a new facility upon the expiry of the current one in 2021 and in the event that satisfactory renewal terms are not available at that time the facility will be repaid from portfolio sales.

Accordingly, taking into account the Company's current position, the fact that Aberdeen Standard Investments has agreed to reduce the fees payable to the Manager to the extent necessary to ensure that the Ongoing Charges Ratio does not exceed 2.0%, the fact that the Company's investments are mostly liquid and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making this assessment, the Board has considered that matters such as the ongoing Covid-19 pandemic, significant economic or stock market volatility, significant discount to NAV, a substantial reduction in the liquidity of the portfolio, or changes in investor sentiment could have an impact on its assessment of the Company's prospects and viability in the future.

Promoting the Company

The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by Aberdeen Standard Investments on behalf of a number of investment companies under its management. The Company's financial contribution to the programme is matched by Aberdeen Standard Investments. Aberdeen Standard Investment's promotional team reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make-up of that register.

The purpose of the programme is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's shares. Communicating the long-term attractions of your Company is key and therefore the Company also supports the Aberdeen Standard Investments investor relations programme which involves regional roadshows, promotional and public relations campaigns.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow the Board to fulfil its obligations. The Board also recognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, or disability in considering the appointment of its Directors. However, the Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment and, therefore, the Company does not consider it appropriate to set diversity targets. At 31 August 2020, there was one male and two female Directors on the Board.

Environmental, Social and Human Rights Issues

The Company has no employees as it is managed by Aberdeen Standard Capital International Limited ("ASCIL") and ordinarily all activities are contracted out to third party service providers. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is in the Annual Report.

Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter. Through the Manager and its engagement with investee companies, the Company has oversight over supply chains within the portfolio. The Board encourages the Manager to engage with investee companies on ESG issues, which could include modern slavery and human rights issues in investment portfolio companies.

The Company's Manager has confirmed that it complies with the 2015 Modern Slavery Act.

The Company has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources.

Future

Many of the non-performance related trends likely to affect the Company in the future are common across all closed ended investment companies, such as the attractiveness of investment companies as investment vehicles and the impact of regulatory changes. These factors need to be viewed alongside the outlook for the Company, both generally and specifically, in relation to the portfolio. The Board's views on the general outlook for the Company can be found in the Chairman's Statement whilst the Investment Manager's views on the outlook for the portfolio are included below.

For and on behalf of the Board

Richard Prosser,

Chairman

4 November 2020

INVESTMENT MANAGER'S REVIEW

Performance Commentary

Latin American equities fell sharply in sterling terms in the year to August 2020, lagging both emerging and developed markets. At the same time, local bond markets remained resilient on the back of deep rate cuts, although this was more than offset by the depreciation of the regional currencies against sterling.

Coronavirus, or the Covid-19 pandemic ("Covid-19"), seemed to arrive in Latin America later than other continents but hit the region hard. Stock prices were weighed down by both currency volatility and the economic impact of Covid-19. Declining oil prices were a key contributor to losses. Brent crude fell dramatically in February as the rise of coronavirus fuelled fears of a global economic slowdown, coupled with an oil price war between Russia and Saudi Arabia. The price recovered to US$45.28 per barrel at the end of August - a small recovery, but still a considerable fall over the period. Buffering the decline to some extent at least were aggressive monetary and fiscal stimulus packages implemented at home and also by major trading partners around the globe.

Brazil saw the passing of the much-debated pension reform bill in October, one of President Bolsonaro's flagship policies and a major step in the fiscal consolidation process. The country's initial light-touch approach to Covid-19 led to one of the world's highest infection rates. Authorities reacted to the crisis with a positive fiscal package, one of the largest among emerging markets, which included cash handouts to households and employment support programs. Meanwhile, the central bank cut its policy rate to a record low of 2% and rolled out liquidity support and capital relief measures. The huge increase in the budget deficit ignited fears of fiscal deterioration, even though authorities pledged to restore prudent policies once the pandemic was over. Signs of a rapid economic rebound in the third quarter after the deep fall in activity underpinned investor sentiment, and contributed to the resilience of the local stock market, at least in local currency terms.

In Mexico, the revamped US-Mexico-Canada Agreement was ratified by Congress in December 2019, reducing trade uncertainty. Mexico's economy was struggling before Covid-19 took hold - shrinking by 0.1% in 2019. As a result of the pandemic this negative trend continued, with an 18.9% contraction in the second quarter. Uniquely among major emerging market economies Mexico decided not to support its economy with a fiscal stimulus. Banco de Mexico maintained its accommodative policy throughout the period, cutting interest rates eight times from 8% to 4.5%, in reaction to the stuttering economy.

In Chile, ongoing protests over income inequality hindered the export-dependent economy. These demonstrations hampered mining activity, which in turn, dampened the currency. On the policy front, allowing workers to partially withdraw pension savings injected additional liquidity. However, this could burden its fiscal position in the medium term.

In Argentina, Alberto Fernandez was sworn in as president in December 2019 after defeating incumbent Mauricio Macri in the October presidential elections. The new leader announced his intention to seek sovereign debt restructuring negotiations with current investors and the International Monetary Fund. Positive sentiment on the massive write-offs by its creditors outweighed the Covid-19 impact on an anaemic economy. Although debt restructuring has provided the government with a lifeline, the implementation of currency controls to prop up the Peso has made it harder for local corporations to tap into foreign capital. Several restructuring plans were proposed and turned down in the first half of 2020; the country missed a bond payment in May, technically meaning it entered into its ninth default. Finally, in August, the government won majority support, swapping 99% of the bonds in question for new securities. In addition, the Covid-19 pandemic has badly affected the Argentinian economy.

Against this backdrop, your Company's equity portfolio fell by 29.7% in sterling terms during the financial year, outperforming the MSCI Emerging Markets Latin America 10/40 Index which fell by 30.29%. The Company's bond portfolio returned -12.79% in sterling terms, compared to the benchmark JPM GBI-EM Global Diversified Latin America Index's return of -13.01%. The yield on the index fell 82 basis points to end the period at 4.95%.

Contributors to Performance

Software companies were the biggest contributors to performance, followed by industrials and financials. Conversely, the materials and consumer sectors negatively impacted performance. At the country level, stock selection in Brazil and Argentina supported returns. However, your portfolio's Mexican and Chilean holdings detracted.

In the technology sector, Argentine software development company Globant contributed positively on accelerating digitalisation trends. This was also the case for Brazil's leading enterprise software solutions provider Totvs. Additionally, the off-benchmark holding in Linx helped the Company, as this leading retail software company rallied on news of a business combination proposal by Brazilian payments unicorn StoneCo.

For the industrial sector, your Company's exposure to WEG, though limited, proved beneficial. The Brazilian electrical motor company's share price doubled, driven by robust results.

Among financials, introducing Brazil's leading equity broker XP to the portfolio helped lift returns. XP's solid business growth was bolstered by the country's deepening capital markets. Stock exchange operator B3 also contributed with its trading volumes increasing as investors searched for yield in a record low interest rate environment. Conversely, holding Banco Bradesco muted portfolio gains as the lender was hurt by the economy's contraction and also suffered from deteriorating asset quality.

In the materials sector, Vale's share price rose on resilient iron-ore prices, along with the better news that it will resume dividends earlier than expected. Payouts had been suspended since the Brumadinho dam disaster. Our overall exposure to the miner, both directly, and via Bradespar's shareholding, supported the portfolio. Separately, Vale's investments to reduce its carbon emissions by one-third over the next decade could help its environmental, social, and governance standing.

Within the consumer sector, not holding Magazine Luiza proved costly for us as new social-distancing norms led to robust demand for the Brazilian retailer's extensive e-commerce business. On a brighter note, the initiation of Mercado Libre added to portfolio gains on the back of stellar results. The e-commerce major's June-quarter revenues rose sharply, thanks to a surge in online sales and virtual payments during the pandemic.

In the bond portfolio, allocation effects were positive for the Company, whereas currency and security selection dragged on performance. In particular, an overweight in Uruguay and Colombia helped drive performance, as did security selection in Colombia. The Company had no exposure to poor performers Chile or Argentina, a decision which aided relative returns. Moreover, the underweight position and security selection in Brazil contributed to performance.

Portfolio Activity

In the equities portion of the portfolio, we introduced Mercado Libre and XP during the review period. This proved to be positive for the portfolio for the reasons set out above. In the half yearly report to 29 February 2020, we highlighted the divestments of Ultrapar, BBVA, Tenaris and Lala. During the second half of the financial year, we also sold Banco Santander Mexico, given the heightened financial risks. Elsewhere, we sold Brazilian food giant BRF on declining conviction and to fund better opportunities elsewhere.

In the bond section of the portfolio, we completely exited our position in Argentina towards the beginning of the financial year in anticipation of the sovereign default. As a result of capital controls Argentina later was expelled from the bond index. We also reduced exposure to Mexican government bonds and the currency. Meanwhile, we subsequently increased our exposure to Peruvian and Colombian local currency bonds.

Outlook

As countries have begun to reopen their economies, there are signs that Covid-19 cases are starting to rise across the globe. The US, Asia and Central Europe are looking like potential hotspots. Of course, we would hope and expect governments around the world to be better prepared this time, therefore view the prospect of further full lockdowns like those seen in March as unlikely. However, even if the number of cases stabilises globally, the recovery path for many countries looks tougher than it did a few months ago. While all countries will suffer in the near term, the scale, duration and persistence of the shock will vary. This will depend on which countries had the most serious imbalances on the eve of this crisis, mount the strongest public health campaigns and put in place the most effective policy responses. We believe that this requires an even more granular approach to differentiating between countries in a stronger fundamental position and those whose existing challenges and imbalances will be exacerbated by this pandemic.

Brazil's economic outlook is mixed as its generous fiscal stimulus package supported consumption demand. However, the support package also affected the country's fiscal accounts and puts at risk the government's ability to meet the constitutional spending ceiling.

In Chile, relatively robust fiscal fundamentals and massive government stimulus should support growth. Caution exists though as income inequality and economic hardship worsened by the prolonged lockdown could lead to more street protests. Meanwhile, the referendum to consider amending the constitution adds to the political uncertainties ahead of next year's elections.

In Mexico, while domestic consumption remained muted given the lack of fiscal stimulus, the renewed free trade agreement with North America, in addition to those with the European Union and Japan, should continue to support exports.

Though cautious about where markets are headed, we are positive about the portfolio's long-term prospects, given our belief in the resilience of the underlying holdings. We will also take advantage of market volatility to pick up high-quality investments at more attractive valuations. In particular, we are focusing on companies backed by solid fundamentals and long-term growth potential that will over time deliver robust yields.

Brunella Isper and Viktor Szabó,

Aberdeen Asset Managers Limited

4 November 2020

PERFORMANCE (TOTAL RETURN)

	1 year	3 year	5 year	Since launch^{A}
	% return	% return	% return	% return
Ordinary share price^{B}	-24.42%	-26.12%	+24.93%	-17.33%
Net asset value^{B}	-27.52%	-27.93%	+31.80%	-8.26%
Benchmark	-22.90%	-19.36%	+35.82%	-0.08%
Total return represents the capital return plus dividends reinvested.
{A} Launch date 16 August 2010.
{B} Considered to be an Alternative Performance Measure.

TEN YEAR FINANCIAL RECORD

Year to 31 August	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Total revenue (£'000)	3,378	3,178	3,914	3,600	3,170	3,544	3,772	3,095	3,230	1,896
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____
Per Ordinary share (p)
Net revenue return	4.82	4.00	4.43	4.11	3.85	4.60	4.77	3.78	4.27	2.21
Total return/(loss)	6.44	0.18	(6.06)	8.65	(33.22)	24.04	18.00	(16.84)	15.20	(22.26)
Net dividends payable	4.25	4.25	4.25	4.25	4.25	3.50	3.50	3.50	3.50	3.50
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____
Net asset value per Ordinary share (p)
Basic & diluted	102.31	98.35	88.04	92.60	55.17	75.54	90.40	70.34	82.34	56.65
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____
Equity shareholders' funds (£'000)	53,309	65,475	58,610	60,729	35,872	48,463	56,170	42,325	47,755	32,355
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____

DIVIDENDS

	Rate	xd date	Record date	Payment date
1st interim 2020	0.875p	19 December 2019	20 December 2019	29 January 2020
2nd interim 2020	0.875p	14 May 2020	15 May 2020	29 May 2020
3rd interim 2020	0.875p	9 July 2020	10 July 2020	31 July 2020
4th interim 2020	0.875p	8 October 2020	9 October 2020	30 October 2020
	______
Total dividends 2020	3.500p
	______

	Rate	xd date	Record date	Payment date
1st interim 2019	0.875p	20 December 2018	21 December 2018	29 January 2019
2nd interim 2019	0.875p	2 May 2019	3 May 2019	17 May 2019
3rd interim 2019	0.875p	4 July 2019	5 July 2019	26 July 2019
4th interim 2019	0.875p	26 September 2019	27 September 2019	25 October 2019
	______
Total dividends 2019	3.500p
	______

INVESTMENT PORTFOLIO

Ten Largest Equity Investments

As at 31 August 2020

Banco Bradesco^{C}		B3 Brasil Bolsa Balco^{B}
A leading privately-owned Brazilian bank with a well-recognised brand, robust loan portfolio and experienced management team.		B3 is a vertically integrated stock exchange provider of securities, commodities and futures trading services along with depository and registration for fixed income securities and clearinghouse for private assets in Brazil.

Petrobas^{B}		Vale ADR
Brazilian state owned oil & gas company primarily engaged in exploration and production, refining, energy generation, trading and distribution of oil products.		Vale is a leading producer of iron ore and pellets. Vale also produces nickel, copper and coal. It operates large logistics systems, including railroads and maritime terminals which are integrated with its mining operations.

Bradespar^{B}		Grupo Financiero Banorte
A holding company where the single underlying asset is Brazil's iron ore producer Vale.		Mexico's leading privately-owned bank with a well-recognised nationwide brand, sizeable pension business and proven track record in conservative lending.

Fomento Economico Mexicano ADR		Itau Unibanco Holdings ^{C}
FEMSA participates in beverages through Coca-Cola FEMSA, the largest Coca-Cola bottler globally. The company also participates in small-format convenience stores, gas stations and pharmacies through FEMSA Comercio.		Brazil's largest privately-owned bank, it is well-capitalised with sound growth prospects and asset quality.

Wal-Mart De Mexico		Rumo^{B}
The largest food and general retailer in Mexico with an established presence across a number of smaller Central American markets.		A Brazilian logistics company mainly focused on the railway line logistics in Brazil. They are the largest company in Latin America in this segment, and the company also provides transportation services.

Investment Portfolio - Equities

As at 31 August 2020

			Valuation	Total	Valuation
			2020	assets	2019
Company	Sector	Country	£'000	%^{A}	£'000
Banco Bradesco^{C}	Financials	Brazil	1,502	4.0	2,779
B3 Brasil Bolsa Balco^{B}	Financials	Brazil	1,416	3.8	1,161
Petrobas^{B}	Energy	Brazil	1,366	3.6	2,432
Vale ADR	Materials	Brazil	1,129	3.0	913
Bradespar^{B}	Materials	Brazil	1,111	2.9	1,218
Grupo Financiero Banorte	Financials	Mexico	1,038	2.7	1,518
Fomento Economico Mexicano ADR	Consumer Staples	Mexico	1,004	2.7	1,353
Itau Unibanco Holdings ^{C}	Financials	Brazil	914	2.4	2,201
Wal-Mart De Mexico	Consumer Staples	Mexico	834	2.2	956
Rumo^{B}	Consumer Discretionary	Brazil	766	2.0	559
Top ten equity investments			11,080	29.3
Globant	Information Technology	Argentina	693	1.8	445
Mercadolibre	Consumer Discretionary	Brazil	687	1.8	-
Arca Continental	Consumer Staples	Mexico	669	1.8	783
Lojas Renner ^{B}	Consumer Discretionary	Brazil	661	1.7	1,302
Notredame Intermedica^{B}	Health Care	Brazil	539	1.4	488
Raia Drogasil^{B}	Consumer Staples	Brazil	539	1.4	313
Grupo Aeroportuario Centro Norte	Industrials	Mexico	523	1.4	204
TOTVS^{B}	Information Technology	Brazil	499	1.3	468
Localiza Rent A Car ^{B}	Industrials	Brazil	499	1.3	864
WEG^{B}	Industrials	Brazil	432	1.1	558
Top twenty equity investments			16,821	44.3
Parque Arauco^{B}	Real Estate	Chile	414	1.1	511
Linx^{B}	Information Technology	Brazil	406	1.1	326
Itausa Investimentos Itau ^{B}	Financials	Brazil	405	1.1	569
Infraestructura Energetica	Industrials	Mexico	400	1.1	452
Banco Santander-Chile ADR	Financials	Chile	380	1.0	516
Multiplan Empreendimentos NPB ^{B}	Real Estate	Brazil	371	1.0	884
XP	Financials	Brazil	343	0.9	-
Cementos Pacasmayo	Materials	Peru	316	0.8	347
Embotolladora Andina 'A' Pref ^{B}	Consumer Staples	Chile	291	0.8	455
Arezzo Industria e Comercio ^{B}	Consumer Discretionary	Brazil	290	0.8	648
Top thirty equity investments			20,437	54.0
Wilson, Sons ^{B}	Industrials	Brazil	275	0.7	384
S.A.C.I. Falabella ^{B}	Consumer Discretionary	Chile	274	0.7	392
Grupo Aeroportuario Sureste ADR	Industrials	Mexico	269	0.7	1,061
Kimberly-Clark de Mexico	Consumer Staples	Mexico	237	0.6	356
BK Brasil^{B}	Consumer Staples	Brazil	236	0.6	30
Geopark	Energy	Chile	224	0.6	332
Odontoprev^{B}	Health Care	Brazil	218	0.6	302
Ambev ^{B}	Consumer Staples	Brazil	200	0.5	895
Grana Y Montero	Industrials	Peru	107	0.3	119
Hoteles City Express	Consumer Discretionary	Mexico	62	0.2	235
Top forty equity investments			22,539	59.5
Fossal	Materials	Peru	1	0.0	2
Total equity investments			22,540	59.5

^{A} See definition in the Glossary in the Annual Report.
^{B} Held in Subsidiary.
^{C} Holding includes investment in ADR (held by the Company) and equity (held by the Subsidiary).

Portfolio investments reflect consolidated investee holdings of the Company and its Subsidiary. Values for 2020 and 2019 may not be directly comparable due to purchases and sales made during the year.

Investment Portfolio - Bonds
As at 31 August 2020
			Valuation	Total	Valuation
			2020	assets	2019
Issue	Sector	Country	£'000	% ^{A}	£'000
Colombia (Rep of) 9.85% 28/06/27	Government Bonds	Colombia	2,477	6.5	2,598
Brazil (Fed Rep of) 10% 01/01/25^{B}	Government Bonds	Brazil	2,419	6.4	4,405
Uruguay (Rep of) 4.375% 15/12/28	Government Bonds	Uruguay	1,439	3.8	1,902
Mex Bonos Desarr Fix Rt 10% 20/11/36	Government Bonds	Mexico	1,378	3.6	2,301
Mexico (United Mexican States) 8.5% 18/11/38	Government Bonds	Mexico	1,344	3.6	1,980
Peru (Rep of) 6.95% 12/08/31	Government Bonds	Peru	1,059	2.8	1,405
Brazil (Fed Rep of) 10% 01/01/27^{B}	Government Bonds	Brazil	779	2.1	1,119
Brazil (Fed Rep of) 10% 01/01/21 ^{B}	Government Bonds	Brazil	726	1.9	2,671
Petroleos Mexicanos 7.47% 12/11/26	Government Bonds	Mexico	722	1.9	898
Uruguay (Rep of) 4.25% 05/04/27	Government Bonds	Uruguay	681	1.8	759
Top ten bond investments			13,024	34.4
Colombia (Rep of) 7% 30/06/32	Government Bonds	Colombia	455	1.2	-
Peru (Rep of) 6.95% 12/08/31	Government Bonds	Peru	429	1.1	478
Peru (Rep of) 6.85% 12/02/42	Government Bonds	Peru	428	1.1	-
Brazil (Fed Rep of) 10% 01/01/29^{B}	Government Bonds	Brazil	242	0.7	-
Petroleos Mexicanos 7.19% 12/09/24	Government Bonds	Mexico	112	0.3	132
Uruguay (Rep of) 9.875% 20/06/22	Government Bonds	Uruguay	103	0.3	454
Total value of bond investments			14,793	39.1
Total value of equity investments			22,540	59.5
Total value of portfolio investments			37,333	98.6
Other net assets held in subsidiary			171	0.5
Total investments			37,504	99.1
Net current assets^{C}			351	0.9
Total assets^{A}			37,855	100.0

{A} See definition in the Glossary in the Annual Report
{B} Held in Subsidiary.
{C} Excluding bank loans of £5,500,000.

DIRECTORS' REPORT

The Directors present their Report and the audited financial statements for the year ended 31 August 2020.

Status

The Company is registered with limited liability in Jersey as a closed-ended investment company under the Companies (Jersey) Law 1991 with registered number 106012. In addition, the Company is constituted and regulated as a collective investment fund under the Collective Investments Funds (Jersey) Law 1988. The Company has no employees and makes no political or charitable donations. The Company has a wholly owned subsidiary, Aberdeen Latin American Income Fund LLC, registered in Delaware. The subsidiary is used to hold certain investments as part of the efficient management of the group.

The Company intends to continue to manage its affairs so as to be a qualifying investment for inclusion in the stocks and shares component of an Individual Savings Account and it is the Directors' intention that the Company should continue to be a qualifying investment.

Results and Dividends

Details of the Company's results and dividends are shown below. The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 August 2020 dividends have been paid in January, May, August and October 2020.

Management Arrangements

The Company has an agreement (the "Management Agreement") with ASCIL for the provision of management, company secretarial and promotional services, details of which are shown in notes 5, 6 and 17 to the financial statements.

Under the Management Agreement, the Manager is entitled to both a management fee and a company secretarial and administration fee. The Manager has agreed to ensure that the Company's ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually as at 31 August. Until further notice, to the extent that the OCR ever exceeds 2.0% the Manager will rebate part of its fees in order to bring that ratio down to 2.0%. In relation to the year ended 31 August 2020 an OCR rebate of £83,000 was payable by the Manager in order to ensure that the OCR did not exceed 2.0%.

The Directors review the terms of the Management Agreement on a regular basis and have confirmed that, due to the investment skills, experience and commitment of the Management team, in their opinion the continuing appointment of ASCIL on the terms agreed, is in the interests of Shareholders as a whole.

Share Capital

As at 31 August 2020 there were 57,113,324 Ordinary shares in issue and 6,107,500 Ordinary shares held in treasury. Details of changes to the Company's shares in issue during the year are provided in 'Your Company's Share Capital History' in the Annual Report.

Ordinary shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary shares carry a right to receive dividends. On a winding up, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings.

Risk Management

Details of the principal risks and uncertainties and KPIs are disclosed above. Details of the financial risk management policies and objectives relative to the use of financial instruments by the Company are set out in note 15 to the financial statements.

Directors

Richard Prosser, Hazel Adam and Heather MacCallum, together with George Baird (who retired on 11 December 2019), were the only Directors in office during the financial year. Howard Myles was appointed as a Director on 1 October 2020, subsequent to the financial year end.

The Directors' beneficial holdings are disclosed in the Directors' Remuneration Report. No Director has a service contract with the Company. The Directors' interests in contractual arrangements with the Company are as shown in note 17 to the financial statements. Details of the Directors retiring and seeking election or re-election at the Annual General Meeting on 10 December 2020 are disclosed below within the Nomination Committee section.

Corporate Governance

The Company is committed to high standards of corporate governance. The Board is accountable to the Company's Shareholders for good governance.

The Company is a member of the Association of Investment Companies ("AIC"). The Board has considered the principles and provisions of the AIC Code of Corporate Governance as published in February 2019 ("AIC Code"). The AIC Code addresses the principles and provisions set out in the UK Corporate Governance Code ("UK Code"), as well as setting out provisions on issues which are of specific relevance to the Company.

The AIC Code is available on the AIC's website: theaic.co.uk.

The Board considers that reporting against the provisions of the AIC Code which has been endorsed by the FRC provides more relevant information to shareholders.

The Board confirms that, during the year, the Company complied with the principles and provisions of the AIC, and the relevant provisions of the UK Code, except as set out below:

The UK Corporate Governance Code includes provisions relating to:

- interaction with the workforce (provisions 2, 5 and 6);

- the role and responsibility of the chief executive (provisions 9 and 14);

- previous experience of the chairman of a remuneration committee (provision 32); and

- executive directors' remuneration (provisions 33 and 36 to 40).

The Board considers that these provisions are not relevant to the position of the Company, being an externally-managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of these provisions. The full text of the Company's Corporate Governance Statement can be found on the Company's website, latamincome.co.uk.

The Directors attended Board and Committee meetings during the year ended 31 August 2020 as follows (with their eligibility to attend the relevant meeting in brackets):

	Board	Audit Committee	MEC	Nomination Committee
Richard Prosser	4 (4)	2 (2)	1 (1)	1 (1)
Hazel Adam	4 (4)	2 (2)	1 (1)	1 (1)
George Baird*	1 (1)	1 (1)	1 (1)	1 (1)
Heather MacCallum	4 (4)	2 (2)	1 (1)	1 (1)

* George Baird retired from the Board on 11 December 2019.

Policy on Tenure

In normal circumstances, it is the Board's expectation that Directors will not serve beyond the Annual General Meeting following the ninth anniversary of their appointment. However, the Board takes the view that independence of individual Directors is not necessarily compromised by length of tenure on the Board and that continuity and experience can add significantly to the Board's strength. The Board believes that recommendation for re-election should be on an individual basis following a rigorous review which assesses the contribution made by the Director concerned, but also taking into account the need for managed succession and diversity.

It is also the Board's policy that the Chair of the Board will not serve as a Director beyond the Annual General Meeting following the ninth anniversary of their appointment to the Board. However, this may be extended in exceptional circumstances or to facilitate effective succession planning and the development of a diverse Board. In such a situation the reasons for the extension will be fully explained to shareholders. Given his length of service, the Nomination Committee has considered the continued appointment of Richard Prosser as Chairman and its assessment is set out in the Annual Report.

The Board has a schedule of matters reserved to it for decision and the requirement for Board approval on these matters is communicated directly to the senior staff at Aberdeen Standard Investments. Such matters include strategy, gearing, treasury and dividend policy. Full and timely information is provided to the Board to enable the Directors to function effectively and to discharge their responsibilities. The Board also reviews the financial statements, performance and revenue budgets.

There is an agreed procedure for Directors to take independent professional advice if necessary and at the Company's expense. This is in addition to the access which every Director has to the advice and services of the Company Secretary, which is responsible to the Board for ensuring that Board procedures are followed and that applicable rules and regulations are complied with.

Board Committees

As the Company has no employees and the Board is comprised wholly of non-executive Directors and given the size and nature of the Company, the Board has not established a separate remuneration committee. Directors' remuneration is determined by the Board as a whole. The remuneration of the Directors has been set in order to attract individuals of a calibre appropriate to the future development of the Company. The Company's policy on Directors' remuneration, together with details of the remuneration of each Director, is detailed in the Directors' Remuneration Report in the Annual Report.

Audit Committee

The Report of the Audit Committee is set out in the Annual Report.

Management Engagement Committee ("MEC")

The Board has appointed a MEC which comprises the entire Board. Richard Prosser is Chairman of the MEC. The Committee has defined terms of reference which are reviewed and re-assessed for their adequacy on an annual basis. Copies of the terms of reference are published on the Company's website: latamincome.co.uk.

The function of the MEC is to review performance of the Company's service providers and to ensure that the Manager and the Investment Manager comply with the terms of the Management Agreement and that the provisions of the agreement follow industry practice, and remain competitive and in the best interest of Shareholders as a whole. The MEC remains satisfied that the continuing appointment of the Investment Manager and Manager on the terms agreed is in the interests of Shareholders as a whole. The key factors taken into account in reaching this decision were the investment skills, experience and commitment and performance record of Aberdeen Standard Investments. The Management Agreement may be terminated by either party by giving not less than 12 months' notice in writing. The MEC has also considered the performance of the Company's other service providers and remains satisfied that they support the Company effectively on reasonable commercial terms.

Nomination Committee

The Board has established a Nomination Committee, comprising all of the Directors, with Richard Prosser as Chairman. Appointments to the Board of Directors are considered by the Nomination Committee. The Committee has defined terms of reference which are reviewed and re-assessed for their adequacy on an annual basis. Copies of the terms of reference are published on the Company's website: latamincome.co.uk. The Committee reviews the effectiveness of the Board, succession planning, Board appointments, inductions and training, and determines the Directors' remuneration policy and level of remuneration.

During the year the Nomination Committee initiated a search to find a new independent non-executive Director. The Board agreed the required skills and experience required of the new Director and appointed Fletcher Jones, an independent search consultant, to assist the Board in its search. The Directors drew up a specification for the appointment and interviewed a shortlist of suitable candidates. Following the interviews, the Directors appointed Howard Myles as an independent non-executive Director of the Company with effect from 1 October 2020.

During the year, the Committee also undertook an annual appraisal during which the Chairman of the Board, individual Directors and the performance of the Committees and the Board as a whole was assessed. The process involved the completion of questionnaires by each Director. The results of the process were discussed by the Board following its completion. The outcome of the appraisal process was judged by the Board to be satisfactory with all Directors having contributed effectively at the meetings that they had attended during the year. The Board also reviewed the Chairman's and Directors' other commitments and is satisfied that the Chairman and other Directors are capable of devoting sufficient time to the Company.

At the AGM on 10 December 2020, Richard Prosser, Hazel Adam and Heather MacCallum will offer themselves for re-election as Directors of the Company and Howard Myles will offer himself for election.

The Board has considered the contribution of each Director and considers that there is a balance of skills and experience within the Board to lead the Company and that all Directors contribute effectively. In accordance with the provisions of the AIC Code and the Board's Policy on Tenure, the Board has scrutinised the contribution and independence of Richard Prosser who has now served on the Board, and as Chairman, for ten years and five months. The Directors are unanimously of the opinion that Richard Prosser was independent on appointment and remains independent of the Manager in character and judgement. He exercises independence of thought, considers shareholder views in every decision and is not overly reliant upon the Manager. During the financial year, Richard Prosser met with shareholders independently of the Manager to hear shareholder views directly and discussed those views with the Board. He continues to act independently serving the interests of shareholders. The Board has considered the relatively short tenure of the Board, excluding Richard Prosser, and believes that Richard Prosser's continued appointment gives the Board continuity and corporate memory, particularly during the current challenges posed by Covid-19. His continued appointment will facilitate effective succession planning and the development of a diverse Board. Accordingly, the Board has no hesitation in recommending to Shareholders the re-election of Richard Prosser. The Board has also reviewed, and wholeheartedly supports, the proposed re-election of Hazel Adams and Heather MacCallum, and proposed election of Howard Myles.

The Board's policy on diversity is disclosed in the Strategic Report above.

The Role of the Chairman

The Chairman is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting a culture of openness and debate. The Chairman facilitates the effective contribution, and encourages active engagement, by each Director. In conjunction with the Company Secretary, the Chairman ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chairman leads the evaluation of the Board and individual Directors, and acts upon the results of the evaluation process by recognising strengths and addressing any weaknesses. The Chairman also engages with major shareholders and ensures that all Directors understand shareholder views.

Going Concern

In accordance with the FRC's guidance the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets including those of its wholly owned subsidiary, Aberdeen Latin American Income Fund LLC, consist of a diverse portfolio of listed equities, equity-related investments and fixed income investments exposed to the Latin American market which in most circumstances are realisable within a very short timescale.

The Company has considerable financial resources and, as a consequence, the Directors believe that the Company is well placed to manage its business risks successfully despite uncertainties in the economic outlook.

The Directors are mindful of the principal risks and uncertainties disclosed above, including the ongoing impact of Covid-19 and possible implications of Brexit, and have reviewed forecasts detailing revenue and liabilities and believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and at least 12 months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements of the Company as at the date of the approval of this Report.

Internal Controls and Risk Management

The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and to manage its affairs properly extends to operational and compliance controls and risk management. The Board has prepared its own risk register which identifies potential risks both major and minor relating to: strategy; investment management; Shareholders; marketing; gearing; regulatory and financial obligations; third party service providers and the Board. The Board considers the potential cause and possible impact of these risks as well as reviewing the controls in place to mitigate these potential risks. A risk is rated by having a likelihood and an impact rating and the residual risk is plotted on a "heat map" and is reviewed regularly.

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. The Board confirms that there is an ongoing process for identifying, evaluating and managing the principal risks faced by the Company. This process has been in place for the period under review and up to the date of approval of this Annual Report and financial statements, and is regularly reviewed by the Board and accords with the FRC's guidance on internal controls. The Board has reviewed the effectiveness of the system of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the principal risks affecting the Company and policies by which these risks are managed. The principal risks and uncertainties faced by the Company are detailed in the Strategic Report.

The key components designed to provide effective internal control are outlined below:

- the Manager prepares monthly forecasts and management accounts which allow the Board to assess the Company's activities and review its performance;

- the Board and the Manager have agreed clearly defined investment criteria, specified levels of authority and exposure limits; reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board and there are meetings with the Manager as appropriate;

- as a matter of course the Manager's compliance department continually reviews its operations;

- written agreements are in place which specifically define the roles and responsibilities of the Manager and other third-party service providers and the Audit Committee reviews, where relevant, periodic ISAE3402 Reports, a global assurance standard for reporting on internal controls for service organisations; the Board is made aware by the Manager of relevant exceptions in ISAE3402 reporting from key third party service providers as part of the Manager's third party service provider oversight regime;

- at its November 2020 meeting, the Audit Committee members carried out an annual assessment of internal controls for the year ended 31 August 2020 by considering documentation from Aberdeen Standard Investments, including the internal audit and compliance functions and taking account of events since 31 August 2020. The results of the assessment were then reported to the Directors at the Board meeting which followed; and,

- the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place at the Manager, has decided to place reliance on Manager's systems and internal audit procedures.

Internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their nature can only provide reasonable and not absolute assurance against mis-statement and loss.

Management of Conflicts of Interest

The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors prepare a list of other positions held and all other conflict situations that may need to be authorised either in relation to the Director themselves or their connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with their wider duties is affected. Each Director is required to notify the Company Secretary of any potential, or actual, conflict situations that will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting.

No Director has a service contract with the Company although each Director is issued with a letter of appointment when appointed to the Board. The Directors' interests in contractual arrangements with the Company are as shown in note 17 to the financial statements. No other Directors had any interest in contracts with the Company during the period or subsequently.

The Board has adopted appropriate procedures designed to prevent bribery. The Company receives periodic reports from its service providers on the anti-bribery policies of these third parties. It also receives regular compliance reports from the Manager.

In the UK the Criminal Finances Act 2017 introduced a new corporate criminal offence of "failing to take reasonable steps to prevent the facilitation of tax evasion". The Board has confirmed that it is the Company's policy to conduct all of its business in an honest and ethical manner. The Board takes a zero-tolerance approach to facilitation of tax evasion, whether under UK law or under the law of any foreign country.

Substantial Interests

The Company has been advised that the following Shareholders owned 3% or more of the issued Ordinary share capital of the Company at 31 August 2020:

Shareholder	Number Of shares held	% held
City of London Investment Management	12,611,708	22.1
1607 Capital Partners	7,933,928	13.9
Aberdeen Standard Retail Plans	7,351,524	12.9
Hargreaves Lansdown, stockbrokers	4,630,034	8.1
Philip J Milton Stockbrokers	3,286,049	5.8
Interactive Investor	2,878,681	5.0
AJ Bell	1,822,233	3.2

On 14 October 2020, Philip J Milton Stockbrokers advised the Company that it had purchased additional shares in the capital of the Company and now holds 6.0% of the issued share capital. On 2 November 2020, 1607 Capital Partners notified the Company that it had purchased additional shares in the capital of the Company and now holds 14.5% of the issued share capital.

There have been no other significant changes notified to the Company in respect of the above holdings between 31 August 2020 and 4 November 2020

Alternative Investment Fund Managers Directive ("AIFMD")

On 14 July 2014, the Jersey Financial Services Commission granted the Company a certificate of exemption from the application of the Alternative Investment Funds (Jersey) Regulations 2012 to any marketing it may carry out within any EU member state. ASCIL, as the Company's non-EEA alternative investment fund manager, also notified the FCA in accordance with the requirements of the UK National Private Placement Regime for inclusion of the Company on the UK register as a non-EEA alternative investment fund being marketed in the UK.

In addition, in accordance with Article 23 of the AIFMD and Rule 3.2.2 of the FCA FUND Sourcebook, ASCIL is required to make available certain disclosures for potential investors in the Company and these are available on the Company's website: latamincome.co.uk.

Annual General Meeting

The AGM will be held at 10.00 a.m. on Thursday, 10 December 2020 at the Company's registered office, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB. Resolutions including the following business will be proposed:

Dividend Policy

As a result of the timing of the payment of the Company's quarterly dividends, the Company's Shareholders are unable to approve a final dividend each year. In line with good corporate governance, the Board therefore proposes to put the Company's dividend policy to Shareholders for approval at the Annual General Meeting and on an annual basis thereafter.

The Company's dividend policy is that interim dividends on the Ordinary Shares are payable quarterly in relation to periods ending November, February, May and August. It is intended that, over the long term, the Company will pay quarterly dividends consistent with the expected annual underlying portfolio yield. Resolution 4 will seek shareholder approval for the dividend policy.

Appointment of Independent Auditor

As set out in the Report of the Audit Committee, PwC was appointed as the Company's auditor during the financial year. Please see the Annual Report for more details. The Directors will place a resolution before the Annual General Meeting to appoint PwC as independent auditor for the ensuing year, and to authorise the Directors to determine their remuneration.

Authority to Purchase the Company's Shares

In the past the Company has quoted that the aim of its discount management policy has been to try to maintain the price at which the Ordinary shares trade relative to the Company's NAV at a discount of no more that 5%. The Company's discount to NAV was -13.2% at 31 August 2020. As set out in the Chairman's Statement, in light of ongoing market volatility arising from the Covid-19 pandemic, and the lack of meaningful impact on the discount, the Board reviewed its share buyback programme and has not bought back any shares since March 2020. During the year under review the Company bought back 887,000 Ordinary shares for cancellation at a cost of £624,000. No shares have been bought back since the financial year end.

Purchases of Ordinary shares will only be made through the market for cash at prices below the prevailing exclusive of income NAV per Ordinary share (as last calculated), subject to prevailing market conditions and having regard to the size of the Company, where the Directors believe it is in the best interest of shareholders to do so.

Resolution 11, a special resolution, will be proposed to renew the Directors' authority to make market purchases of the Ordinary shares in accordance with the provisions of the FCA's Listing Rules. The Company will seek authority to purchase up to a maximum of 8,561,287 Ordinary shares (representing 14.99% of the current issued Ordinary share capital excluding treasury shares as at the date of publication of this Annual Report). The authority being sought shall expire at the conclusion of the Annual General Meeting in 2021 unless such authority is renewed prior to that time. Any Ordinary shares purchased in this way will either be cancelled and the number of Ordinary shares will be reduced accordingly, or the Ordinary shares will be held in treasury, in accordance with the authority previously conferred by Shareholders.

The Companies (Jersey) Law 1991 allows companies to either cancel shares or hold them in treasury following a buy-back. These powers give Directors additional flexibility and the Board considers that it is in the interest of the Company that such powers be available, including the power to hold treasury shares. Any future sales of Ordinary shares from treasury will only be undertaken at a premium to the prevailing NAV per Ordinary share for the benefit of all Shareholders. The Directors monitor the level of shares held in treasury and whilst there are no upper limits on the number of shares that can be held in treasury consideration will be given to cancelling treasury shares if the number becomes excessively high compared to the issued share capital.

Directors' Authority to Allot Relevant Securities

There are no provisions under Jersey law which confer rights of pre-emption upon the issue or sale of any class of shares in the Company. However, as the Ordinary shares are traded on the main market of the London Stock Exchange and have a premium listing, the Company is required to offer pre-emption rights to its Shareholders and the Articles of Association reflect this. Ordinary shares will only be issued at a premium to the prevailing NAV per Ordinary share and, therefore, any issue will not be dilutive to existing Ordinary Shareholders.

Unless previously disapplied by special resolution, in accordance with the FCA's Listing Rules, the Company is required to first offer any new shares or securities (or rights to subscribe for, or to convert or exchange into, shares) proposed to be issued for cash to Shareholders in proportion to their holdings in the Company. In order to provide for such share issues, your Board is therefore also proposing that an annual disapplication of the pre-emption rights is given to the Directors so that they may issue shares as and when appropriate. Accordingly, resolution 12, a Special resolution, proposes a disapplication of the pre-emption rights in respect of 10% of the shares in issue, set to expire on the earlier of eighteen months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2021.

Approval and Adoption of New Articles of Association

Under resolution 13, which is proposed as a special resolution, the Company is proposing to amend its Articles of Association to allow the Company to hold general meetings by electronic or traditional means or both so that shareholders may participate remotely. As set out in the Chairman's Statement, the Company has no present intention of holding a wholly electronic general meeting but wants to be prepared for the future.

A copy of the Company's existing Articles of Association and proposed new Articles of Association marked to show all the changes will be available for inspection during normal business hours (excluding Saturdays, Sundays and bank holidays) at the Company's registered office, and on the Company's website, from the date of this notice of meeting until the close of the meeting. The proposed new Articles of Association will also be available for inspection at the annual general meeting at least 15 minutes prior to the start of the meeting and up until the close of the meeting.

Recommendation

Your Board considers all resolutions to be in the best interests of the Company and its members as a whole. Accordingly, your Board recommends that Ordinary Shareholders should vote in favour of all resolutions to be proposed at the Annual General Meeting, as they intend to do in respect of their own beneficial shareholdings.

Directors' & Officers Liability Insurance

Directors' & Officers' liability insurance cover has been maintained throughout the period at the expense of the Company.

Relations with Shareholders

The Directors place a great deal of importance on communication with Shareholders and welcome feedback from all Shareholders. The Chairman meets periodically with the largest Shareholders to discuss the Company. The Annual Report and financial statements are widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up to date information on the Company through the Manager's freephone information service and the Company's website: latamincome.co.uk.

The Board's policy is to communicate directly with Shareholders and their representative bodies without the involvement of the management group (either the Company Secretary or the Manager) in situations where direct communication is required.

The Notice of the Annual General Meeting, included within the Annual Report and financial statements, is ordinarily sent out at least 20 working days in advance of the meeting. All Shareholders have the opportunity to put questions to the Board or Manager, either formally at the Company's AGM or informally following the meeting. The Company Secretary is available to answer general Shareholder queries at any time throughout the year. The Directors are keen to encourage dialogue with Shareholders and the Chairman welcomes direct contact from Shareholders. In light of the ongoing Covid-19 pandemic and the likelihood that shareholders will not be able to attend the Company's Annual General Meeting on 10 December 2020, the Company asks that shareholders submit questions to the Board and Manager in advance of the AGM. The Board or Manager will respond to all questions received. You may submit questions to the Board by email to latin.american@aberdeen-asset.com .

Responsible Investment

The Board is aware of its duty to act in the interests of the Company. The Board acknowledges that there are risks associated with investment in companies which fail to conduct business in a socially responsible manner. The Manager considers social, environmental and ethical factors which may affect the performance or value of the Company's investments. The Directors, through the Company's Manager, encourage companies in which investments are made to adhere to best practice in the area of Corporate Governance. They believe that this can best be achieved by entering into a dialogue with company management to encourage them, where necessary, to improve their policies in this area. The Company's ultimate objective however is to deliver superior investment returns for its shareholders. Accordingly, whilst the Manager will seek to favour companies which pursue best practice in the above areas, this must not be to the detriment of the return on the investment portfolio.

UK Stewardship Code and Proxy Voting as an Institutional Shareholder

Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the Manager which has sub-delegated that authority to the Investment Manager.

The full text of the Company's response to the Stewardship Code may be found on the Company's website: latamincome.co.uk.

Environmental, Social and Governance (ESG) Policy

The Board is aware of its duty to act in the best interests of the Company. As an investment company, the Company has no direct social, environmental or community responsibilities. However, the Board acknowledges that there are risks associated with investment in companies which fail to conduct business in a socially responsible manner and the Board, therefore, ensures that they take regular account of the social, environment and ethical factors, which may affect the performance or value of the Company's investments, including climate change. Through the Manager the Company ensures it has oversight over its supply chains, which is monitored through the Company's investment process.

For and on behalf of the Board

Aberdeen Standard Capital International Limited,

Secretary

4 November 2020

1st Floor, Sir Walter Raleigh House

48 - 50 Esplanade,

St Helier

Jersey JE2 3QB

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The Companies (Jersey) Law 1991 requires the Directors to prepare financial statements for each financial period in accordance with any generally accepted accounting principles. The financial statements of the Company are required by law to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors should:

- select suitable accounting policies and then apply them consistently;

- make judgments and estimates that are reasonable;

- specify which generally accepted accounting principles have been adopted in their preparation;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

- assess whether the Annual Report and financial statements, taken as a whole, is 'fair, balanced and understandable'.

The Directors are responsible for keeping accounting records which are sufficient to show and explain its transactions and are such as to disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements prepared by the Company comply with the requirements of the Companies (Jersey) Law 1991. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for ensuring that the Company complies with the provisions of the Listing Rules and the Disclosure, Guidance & Transparency Rules of the Financial Conduct Authority which, with regard to corporate governance, require the Company to disclose how it has applied the principles, and complied with the provisions, of the UK Corporate Governance Code applicable to the Company.

Declaration

The Directors, being the persons responsible, hereby confirm to the best of their knowledge:

- that the financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

- that in the opinion of the Directors, the Annual Report and financial statements taken as a whole, is fair, balanced and understandable and it provides the information necessary to assess the Company's position and performance, business model and strategy; and

- the Strategic Report, including the Chairman's Statement and the Investment Manager's Review, include a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that the Company faces.

For and on behalf of the Board

Richard Prosser,

Chairman

4 November 2020

1st Floor, Sir Walter Raleigh House

48 - 50 Esplanade,

St Helier

Jersey JE2 3QB

The Manager is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions .

STATEMENT OF COMPREHENSIVE INCOME

		Year ended 31 August 2020			Year ended 31 August 2019
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	'000	£'000	£'000	£'000	£'000	£'000
Income
Income	4	1,896	-	1,896	3,230	-	3,230
Realised losses on financial assets held at fair value through profit or loss		-	(1,393)	(1,393)	-	(2,939)	(2,939)
Unrealised (losses)/gains on financial assets held at fair value through profit or loss		-	(12,579)	(12,579)	-	9,821	9,821
Realised currency gains/(losses)		-	85	85	-	(38)	(38)
Unrealised currency (losses)/gains		-	(60)	(60)	-	83	83
Realised gains/(losses) on forward foreign currency contracts		-	20	20	-	(59)	(59)
Unrealised gains/(losses) on forward foreign currency contracts		-	84	84	-	(49)	(49)
		_______	______	______	_______	_______	_______
		1,896	(13,843)	(11,947)	3,230	6,819	10,049
		_______	______	______	_______	_______	_______
Expenses
Investment management fee	5	(180)	(269)	(449)	(213)	(320)	(533)
Other operating expenses	6	(386)	-	(386)	(411)	-	(411)
		_______	______	______	_______	_______	_______
Profit/(loss) before finance costs and taxation		1,330	(14,112)	(12,782)	2,606	6,499	9,105

Finance costs		(39)	(58)	(97)	(49)	(73)	(122)
		_______	______	______	_______	_______	_______
Profit/(loss) before taxation		1,291	(14,170)	(12,879)	2,557	6,426	8,983

Taxation	7	(24)	136	112	(32)	35	3
		_______	______	______	_______	_______	_______
Profit/(loss) for the year		1,267	(14,034)	(12,767)	2,525	6,461	8,986
		_______	______	______	_______	_______	_______

Earnings per Ordinary share (pence)	9	2.21	(24.47)	(22.26)	4.27	10.93	15.20
		_______	______	______	_______	_______	_______

The profit/(loss) for the year is also the comprehensive income for the year.
The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with IFRS. The revenue and capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.
All items in the above statement derive from continuing operations.
The accompanying notes are an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

		As at	As at
		31 August 2020	31 August 2019
	Notes	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	10	37,504	53,327
		_______	_______
Current assets
Cash		306	459
Forward foreign currency contracts		162	62
Other receivables		160	392
		_______	_______
Total current assets		628	913
		_______	_______
Total assets		38,132	54,240

Current liabilities
Bank loan	11	(5,500)	(6,000)
Forward foreign currency contracts		(78)	(111)
Other payables		(199)	(238)
		_______	_______
Total current liabilities		(5,777)	(6,349)
		_______	_______
Non-current liabilities
Deferred tax liability on Mexican capital gains	7	-	(136)
		_______	_______
Net assets		32,355	47,755
		_______	_______
Equity capital and reserves
Equity capital	12	65,936	65,936
Capital reserve	13	(35,543)	(20,885)
Revenue reserve		1,962	2,704
		_______	_______
Equity Shareholders' funds		32,355	47,755
		_______	_______
Net asset value per Ordinary share (pence)	14	56.65	82.34
		_______	_______

The financial statements were approved by the Board of Directors and authorised for issue on 6 November 2020 and were signed on its behalf by:

Richard Prosser

Chairman

The accompanying notes are an integral part of the financial statements.

STATEMENT OF CHANGES IN EQUITY

Year ended 31 August 2020
		Stated	Capital	Revenue
		capital	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000
Balance at 1 September 2019		65,936	(20,885)	2,704	47,755
(Loss)/profit for the year		-	(14,034)	1,267	(12,767)
Dividends paid	8	-	-	(2,009)	(2,009)
Purchase of own shares		-	(624)	-	(624)
		_______	_______	_______	_______
Balance at 31 August 2020		65,936	(35,543)	1,962	32,355
		_______	_______	_______	_______

Year ended 31 August 2019
		Stated	Capital	Revenue
		capital	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000
Balance at 1 September 2018		65,936	(25,861)	2,250	42,325
Profit for the year		-	6,461	2,525	8,986
Dividends paid	8	-	-	(2,071)	(2,071)
Purchase of own shares		-	(1,485)	-	(1,485)
		_______	_______	_______	_______
Balance at 31 August 2019		65,936	(20,885)	2,704	47,755
		_______	_______	_______	_______

The accompanying notes are an integral part of the financial statements.

STATEMENT OF CASH FLOWS

	Year ended	Year ended
	31 August 2020	31 August 2019
	£'000	£'000
Net cash inflow from operating activities
Dividend income	367	530
Fixed interest income	849	1,508
Income from Subsidiary	824	1,107
Interest income	2	4
Investment management fee paid	(477)	(525)
Other paid expenses	(490)	(336)
	_______	_______
Cash generated from operations	1,075	2,288

Interest paid	(98)	(122)
Withholding taxes paid	(24)	(40)
	_______	_______
Net cash inflow from operating activities	953	2,126

Cash flows from investing activities
Purchases of investments	(5,351)	(4,827)
Proceeds from sales of investments	6,346	7,581
Receipts from/(payments to) Subsidiary	923	(778)
	_______	_______
Net cash inflow from investing activities	1,918	1,976

Cash flows from financing activities
Equity dividends paid	(2,009)	(2,071)
Repurchase of own shares	(624)	(1,469)
Loan repaid	(500)	(500)
	_______	_______
Net cash outflow from financing activities	(3,133)	(4,040)
	_______	_______
Net (decrease)/increase in cash	(262)	62

Reconciliation of net cash flow to movements in cash
Net (decrease)/increase in cash as above	(262)	62
Foreign exchange	109	(14)
Cash at start of year	459	411
	_______	_______
Cash and cash equivalents at end of year	306	459
	_______	_______

The accompanying notes are an integral part of the financial statements.

ALTERNATIVE PERFORMANCE MEASURES

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes IFRS and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.
Total return. NAV and share price total returns show how the NAV and share price have performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
The tables below provide information relating to the NAVs and share prices of the Company on the dividend reinvestment dates during the years ended 31 August 2020 and 31 August 2019.

	Dividend		Share
2020	rate	NAV	price
31 August 2019	N/A	82.34p	69.20p
26 September 2019	0.875p	82.60p	71.50p
19 December 2019	0.875p	82.61p	71.60p
14 May 2020	0.875p	51.57p	40.60p
9 July 2020	0.875p	61.28p	52.50p
31 August 2020	N/A	56.65p	49.15p
		_______	_______
Total return		-27.5%	-24.4%
		_______	_______

	Dividend		Share
2019	rate	NAV	price
31 August 2018	N/A	70.34p	60.80p
4 October 2018	0.875p	74.32p	64.40p
20 December 2018	0.875p	75.32p	63.30p
2 May 2019	0.875p	77.36p	66.00p
4 July 2019	0.875p	87.24p	74.60p
31 August 2019	N/A	82.34p	69.20p
		_______	_______
Total return		+22.4%	+19.9%
		_______	_______

Discount to net asset value per Ordinary share. The discount is the amount by which the share price of 49.15p (31 August 2019 - 69.20p) is lower than the net asset value per Ordinary share of 56.65p (31 August 2019 - 82.34p), expressed as a percentage of the net asset value per share per Ordinary share.
Dividend cover. Revenue return per Ordinary share of 2.21p (31 August 2019 - 4.27p) divided by dividends per Ordinary share of 3.50p (31 August 2019 - 3.50p) expressed as a ratio.
Net gearing. Net gearing measures the total borrowings of £5,500,000 (31 August 2019 - £6,000,000) less cash and cash equivalents of £306,000 (31 August 2019 - £535,000) divided by shareholders' funds of £32,355,000 (31 August 2019 - £47,755,000), expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes net amounts due to and from brokers of £nil (31 August 2019 - £76,000) at the year end as well as cash at bank and in hand of £306,000 (31 August 2019 - £459,000).
Ongoing charges. The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses and expressed as a percentage of the average net asset values with debt at fair value throughout the year.

		2020	2019
Investment management fees (£'000)		449	533
Administrative expenses (£'000)		386	411
Less: non-recurring charges (£'000)		(33)	(10)
		_______	_______
Ongoing charges (£'000)		802	934
		_______	_______
Average net assets (£'000)		40,107	46,712
		_______	_______
Ongoing charges ratio		2.00%	2.00%
		_______	_______

The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which amongst other things, includes the cost of borrowings and transaction costs.

NOTES TO THE FINANCIAL STATEMENTS

1.	Principal activity. The Company is a closed-end investment company incorporated in Jersey, and its shares are traded on the London Stock Exchange and are listed in the premium segment of the Financial Conduct Authority's Official List. The Company's principal activity is investing in Latin American securities.
	The principal activity of its Delaware incorporated wholly owned subsidiary, Aberdeen Latin American Income Fund LLC, is similar in all relevant respects to that of its parent.

2.	Accounting policies
	(a)	Basis of preparation. The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 August 2020.
		The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB). The financial statements have been prepared on a historical-cost basis, except for financial assets and financial liabilities held at fair value through profit or loss.
		The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances, including in the current market environment, are realisable within a short timescale. The Board has set limits for borrowing and regularly reviews cash flow projections and compliance with banking covenants, including the headroom available. The Company has a revolving loan facility which expires in August 2021. Having taken these factors into account as well as the impact of Covid-19 and having assessed the principal risks and other matters set out in the Viability Statement, the Directors believe that, after making enquiries, the Company has adequate resources to continue in operational existence for the foreseeable future and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is included in the Directors' Report (unaudited).
		The Company's financial statements are presented in sterling, which is also the functional currency as it is the currency in which shares are issued and expenses are generally paid. All values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.
		Where presentational guidance set out in the Statement of Recommended Practice ("SORP"): 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by the Association of Investment Companies ("AIC"), is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP issued in October 2019.
		Significant accounting judgements, estimates and assumptions. The preparation of financial statements in conformity with IFRS requires the use of certain significant accounting judgements, estimates and assumptions which requires management to exercise its judgement in the process of applying the accounting policies. Management have identified two such judgements in preparing the financial statements.
		Accounting judgement - Application of IFRS 10: Assessment of investment entity. One of the key areas for consideration has been the application of IFRS 10 'Consolidated Financial Statements' including the Amendments, 'Investment entities (Amendments to IFRS 10, IFRS 12 and IAS 27) (Investment Entity Amendments)'. The standard requires entities that meet the definition of an investment entity to fair value certain subsidiaries through profit or loss in accordance with IFRS 9 'Financial Instruments', rather than consolidate their results. However, entities which are not themselves investment entities and provide investment related services to the Company will continue to be consolidated.
		Entities which meet the definition of an investment entity are required to fair value subsidiaries through profit or loss rather than consolidate them. An investment entity meets the definition of an investment entity if it satisfies the following three criteria:
		(i)	an entity obtains funds from one or more investors for the purpose of providing those investors with investment services; the Company provides investment services and has several investors who pool funds to gain access to these services and investment opportunities which they might not be able to as individuals.
		(ii)	an entity commits to its investors that its business purpose is to the investment in its subsidiary solely for capital appreciation, investment income, or both; the Company's investment objective is to provide Ordinary Shareholders with a total return, with an above average yield, primarily through investing in Latin American securities.
		(iii)	an entity measures and evaluates the performance of substantially all of its investments on a fair value basis; the Company has elected to measure and evaluate the performance of all of its investments on a fair value basis. The fair value basis is used to present the Company's performance in its communication with the market and the primary measurement attribute to evaluate performance of all of its investments and to make investment decisions.
		The Company and Subsidiary each meet the definition of an investment entity, and, therefore, all investments in subsidiaries are recorded at fair value through profit or loss.
		Accounting judgement - Fair value of the Subsidiary. The Directors conclude that the net asset value of the wholly owned Subsidiary is considered to be its fair value for financial reporting purposes based on the Subsidiary's portfolio of investments being liquid and there being no significant restrictions on the transfer of funds to the parent company.
		New and amended standards and interpretations. The Company applied, for the first time, certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2019. The nature and impact is described below:
		IAS 12 Income Taxes - recognition of deferred taxes.
		IAS 23 Borrowing Costs - borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset must be capitalised.
		IFRS 9 Amendment 'Prepayment Features with Negative Compensation'. IFRS 9 replaces IAS 39 'Financial Instruments: Recognition and Measurement' and this amendment provided relief to certain financial instruments at amortised costs with negative compensation to be measured at fair value through other comprehensive income. The adoption of the IFRS 9 amendment has had no significant impact on the financial statements of the Company.
		IFRIC 23 - Uncertainty over Income Tax Treatments. The Company adopted IFRIC 23 'Uncertainty over Income Tax Treatments' which was developed to address how to reflect uncertainty in accounting for income taxes. The directors do not consider there to be any income tax treatments that are considered to be uncertain and therefore, there was no significant impact of adopting IFRIC 23 for the Company.
		At the date of authorisation of these financial statements, the following Standards and Interpretations were assessed to be relevant and are effective for annual periods beginning on or after 1 January 2020:
		IAS 1 Amendments - Classification of Liabilities as current or non-current
		IAS 1 and IAS 8 Amendments - Definition of Material
		IAS 1, 8, 34, 37, 38 and IFRS 2, 3, 6, 14 - Amendment to references to the conceptual framework
		IFRS 3 Amendment - Definition of a Business
		IFRS 9, IAS 39 and IFRS 7 Amendments - Interest rate benchmark reform
		IFRIC 12, 19, 20, 22 and SIC 32 - Amendment to references to the conceptual framework
		In addition, under the Annual Improvements to IFRSs 2018 - 2020 Cycle, a number of Standards are due for revision and are applicable for annual periods beginning on or after 1 January 2020.
		The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective and the Board does not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact the Company's financial results in the period of initial application although there may be revised presentations to the Financial Statements and additional disclosures.
	(b)	Income. Dividend income from equity investments is recognised on the ex-dividend date. Dividend income from equity investments where no ex-dividend date is quoted are recognised when the Company's right to receive payment is established. Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised as income. Special dividends are recognised as capital or revenue according to their circumstances.
		The fixed returns on debt instruments are recognised using the time apportioned accruals basis.
	(c)	Expenses and interest payable. All expenses, with the exception of interest, which is recognised using the effective interest method, are recognised on an accruals basis. Expenses are charged to the revenue column of the Statement of Comprehensive Income except as follows:
		- costs incidental to the issue of new shares as defined in the Prospectus are charged to capital;
		- expenses resulting from the acquisition or disposal of an investment are charged to the capital column of the Statement of Comprehensive Income; and
		- expenses are charged to the capital column of the Statement of Comprehensive Income where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. The Company charges 60% of investment management fees and finance costs to capital, in accordance with the Board's estimate of expected long-term return in the form of capital gains and income respectively from the investment portfolio of the Company.
	(d)	Taxation. Profits arising in the Company for the year ended 31 August 2020 will be subject to Jersey income tax at the rate of 0% (2019 - 0%).
		Investment income and capital gains are subject to withholding tax deducted at the source of the income. The Company presents the withholding tax separately from the gross investment income in the Statement of Comprehensive Income under taxation.
		Deferred tax is recognised in respect of all temporary differences at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Balance Sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise, using enacted tax rates that are expected to apply at the date the deferred tax position is unwound.
	(e)	Investments held at fair value through profit or loss. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments'.
		The Company classifies its investments based on their contractual cash flow characteristics and the Company's business model for managing the assets. The business model, which is the determining feature for debt instruments, is such that the portfolio of investments is managed, and performance is evaluated, on a fair value basis. The Manager is also compensated based on the fair value of the Company's assets. Equity instruments are classified as FVTPL because cash flows resulting from such instruments do not represent payments of principal and interest on the principal outstanding, and therefore they fail the contractual cash flows test. Consequently, all investments are measured at FVTPL.
		Purchases and sales of investments are recognised on a trade date basis. Proceeds are measured at fair value, which is regarded as the proceeds of sale less any transaction costs.
		Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as "Gains/(losses) on investments held at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase.
		Fair value measurement. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value is derived from unadjusted quoted bid prices in active markets, with the exception of inflation-linked bonds whose quoted bid prices are adjusted for indexation arising from the movement of the consumer prices index for the relevant country of issue of the bond. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
	(f)	Cash and cash equivalents. Cash comprises cash at banks and short-term deposits.
	(g)	Other receivables. Other receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. As such they are measured at amortised cost. Other receivables do not carry any interest and they have been assessed for any expected credit losses over their lifetime due to their short-term nature.
	(h)	Other payables. Other payables are non interest bearing and are stated at amortised cost.
	(i)	Nature and purpose of reserves
		Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movement in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These include gains and losses from foreign currency exchange differences.
		Additionally, expenses, including finance costs, are charged to this reserve in accordance with Note 2(c) above.
		When the Company purchases its Ordinary shares to be held in treasury and for cancellation, the amount of the consideration paid, which includes directly attributable costs, is net of any tax effect, and is recognised as a deduction from the capital reserve. Should these shares be sold subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to or from the capital reserve.
		Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income less dividends which have been paid.
	(j)	Foreign currency. Monetary assets and liabilities denominated in foreign currencies are converted into sterling at the rate of exchange ruling at the reporting date. The financial statements are presented in sterling, which is the Company's functional and presentation currency. The Company's performance is evaluated and its liquidity is managed in sterling. Therefore sterling is considered as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Gains or losses arising from a change in exchange rates subsequent to the date of a transaction are included as a currency gain or loss in revenue or capital in the Statement of Comprehensive Income, depending on whether the gain or loss is of a revenue or capital nature.
	(k)	Bank loans. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments' which replaces IAS 39 'Financial Instruments: Recognition and Measurement'. Borrowings are measured at amortised cost using the effective interest rate method. No impact on the classification or measurement of borrowings has arisen due to the adoption of IFRS 9.
		Borrowings are stated at the amount of the net proceeds immediately after draw down plus cumulative finance costs less cumulative payments. The finance cost of borrowings is allocated to years over the term of the debt at a constant rate on the carrying amount and charged 40% to revenue and 60% to capital to reflect the Company's investment policy and prospective revenue and capital growth.
	(l)	Derivative financial instruments. The Company may use forward foreign exchange contracts to manage currency risk arising from investment activity.
		Derivatives are measured at fair value calculated by reference to forward exchange rates for contracts with similar maturity profiles.
		Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income as revenue or capital depending on their nature.
	(m)	Dividends payable. Interim dividends payable are recognised in the financial statements in the period in which they are paid.

3.	Segmental reporting. The Company is engaged in a single segment of business. For management purposes, the Company is organised into one main operating segment, which invests in equity securities, debt instruments and related derivatives. All of the Company's activities are viewed on a portfolio wide basis and are interrelated, with each activity dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment.
	The following table analyses the Company's income, including income derived from the Subsidiary's investments, by geographical location. The basis for attributing the income is the place of incorporation of the instrument's investment, however, where the Company invests in ADR designated securities the underlying geographic location is considered to be the basis.

		2020	2019
		£'000	£'000
	Argentina	1	511
	Brazil	911	1,376
	Chile	39	57
	Columbia	186	213
	Mexico	470	691
	Peru	126	129
	Uruguay	161	249
	United Kingdom	2	4
		_______	_______
		1,896	3,230
		_______	_______

	The Company's income (including that generated by its Subsidiary's investments) comprises 31% (2019 - 28%) from equities and 69% (2019 - 72%) from fixed income securities.

4.	Income
		2020	2019
		£'000	£'000
	Income from investments
	Dividend income	317	511
	Fixed interest income	835	1,534
	Income from Subsidiary	742	1,181
		_______	_______
		1,894	3,226
		_______	_______
	Other income
	Deposit interest	2	4
		_______	_______
		1,896	3,230
		_______	_______

	The Company owns 100% of the share capital of its Subsidiary and has the ability to control the Subsidiary's operations. There are no significant restrictions on the transfer of funds to or from the Subsidiary and accordingly income is recognised by the Company in the same period as received by the Subsidiary. During the year net revenue of £742,000 (2019 - £1,181,000) was generated by the Subsidiary.

Investment management fee. The Company had an agreement with ASCIL (Aberdeen Private Wealth Management Limited ("APWML") prior to 30 September 2019) for the provision of management services during the year. Portfolio management services have been delegated by ASCIL to AAML during the year (APWML prior to 30 September 2019).

The management fee is based on an annual rate of 1% of the NAV of the Company, valued monthly. The agreement is terminable on one year's notice. The balance due to ASCIL at the year end was £65,000 (2019 - £93,000). Investment management fees are charged 40% to revenue and 60% to capital.

6.	Other operating expenses
		2020	2019
		£'000	£'000
	Directors' fees	87	92
	Promotional activities	24	24
	Secretarial and administration fee	42	73
	Auditor's remuneration:
	- fees payable for the audit of the annual accounts	35	32
	Legal and advisory fees	33	12
	Custodian and overseas agents' charges	57	60
	Broker fees	22	30
	Stock exchange fees	20	20
	Registrar's fees	27	22
	Printing	19	18
	Other	20	28
		_______	_______
		386	411
		_______	_______

	The Company has an agreement with ASFML for the provision of promotional activities. The total fees incurred under the agreement during the year were £24,000 (2019 - £24,000), of which £4,000 (2019 - £4,000) was due to ASFML at the year end.
	The Company's management agreement with ASCIL provides for the provision of company secretarial and administration services. This agreement has been sub-delegated to Aberdeen Standard Fund Managers Limited. ASCIL is entitled to an annual fee of £125,000 (2019 - £122,000) which increases annually in line with any increase in the UK Retail Price Index. A balance of £42,000 (2019 - £42,000) was due to ASCIL at the year end.
	The Manager has agreed to ensure that the Company's ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually as at 31 August. As the OCR exceeded 2.0% for the year ended 31 August 2020, the Manager has agreed to rebate £83,000 (2019 - £49,000) of the secretarial and administration fee in order to bring the OCR down to 2.0%.

7.	Taxation
		2020			2019
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Analysis of charge for the year
	Overseas tax suffered	24	-	24	32	-	32
	Total current tax charge for the year	24	-	24	32	-	32
	Deferred tax liability on Mexican capital gains	-	(136)	(136)	-	(35)	(35)
		______	______	______	______	______	______
	Total tax charge for the year	24	(136)	(112)	32	(35)	(3)
		______	______	______	______	______	______

	No potential tax deferred liability arises on Mexican capital gains at 31 August 2020 (2019 - £136,000). The deferred tax liability provision at 31 August 2019 of £136,000 was released during the current year.

	Factors affecting the tax charge for the year
	The tax charged for the year can be reconciled to the profit/(loss) per the Statement of Comprehensive Income as follows:

		2020			2019
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Profit/(loss) before taxation	1,291	(14,170)	(12,879)	2,557	6,426	8,923

	Tax on profit/(loss) at the standard rate of nil% (2019 - nil%)	-	-	-	-	-	-
	Effects of:
	Losses/(gains) on investments held at fair value through profit or loss not taxable	-	-	-	-	-	-
	Currency (gains)/losses not taxable	-	-	-	-	-	-
	Movement in excess expenses	-	-	-	-	-	-
	Expenses not deductible for tax purposes	-	-	-	-	-	-
	Movement in deferred tax liability on Mexican capital gains	-	(136)	(136)	-	(35)	(35)
	Irrecoverable overseas withholding tax	24	-	24	32	-	32
	Non-taxable dividend income	-	-	-	-	-	-
		_______	_______	_______	_______	_______	_______
	Total tax charge	24	(136)	(112)	32	(35)	(3)
		_______	_______	_______	_______	_______	_______

	The effective rate of tax of the Company is nil% (2019 - nil%) and the amounts in the table are reconciling items between tax at the effective rate and the taxation charge in the Statement of Comprehensive Income.

8.	Dividends on equity shares
		2020	2019
		£'000	£'000
	Distributions to equity holders in the period:
	Fourth interim dividend for 2019 - 0.875p (2018 - 0.875p) per Ordinary share	506	526
	First interim dividend for 2020 - 0.875p (2019 - 0.875p) per Ordinary share	503	521
	Second interim dividend for 2020 - 0.875p (2019 - 0.875p) per Ordinary share	500	514
	Third interim dividend for 2020 - 0.875p (2019 - 0.875p) per Ordinary share	500	510
		_______	_______
		2,009	2,071
		_______	_______

	The fourth interim dividend for the year of 0.875p per Ordinary share has not been included as a liability in these financial statements as it was announced and paid after 31 August 2020.

9.	Earnings per Ordinary share. Earnings or loss per Ordinary share is based on the loss for the year of £12,767,000 (2019 profit - £8,986,000) and on 57,349,075 (2019 - 59,116,420) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.
	The earnings per Ordinary share detailed above can be further analysed between revenue return and capital return as follows:

		2020			2019
		Revenue	Capital	Total	Revenue	Capital	Total
	Profit/(loss) (£'000)	1,267	(14,034)	(12,767)	2,525	6,461	8,986
	Weighted average number of Ordinary shares in issue ('000)			57,349			59,116
	Return per Ordinary share (pence)	2.21	(24.47)	(22.26)	4.27	10.93	15.20

10.	(a)	Investments held at fair value
			Year ended				Year ended
			31 August 2020				31 August 2019
			Quoted bonds	Investment			Quoted bonds	Investment
			& Equities	in Subsidiary	Total		& Equities	in Subsidiary		Total
		Fair value through profit or loss	£'000	£'000	£'000		£'000	£'000		£'000
		Opening book cost	27,606	14,971	42,577		32,470	15,300		47,770
		Opening investment holdings gains/(losses)	866	9,884	10,750		(2,097)	2,604		507
		Opening fair value	28,472	24,855	53,327		30,373	17,904		48,277
		Movements in the year:
		Purchases	5,396	-	5,396		4,959	-		4,959
		Sales proceeds	(6,242)	-	(6,242)		(7,643)	-		(7,643)
		Payments to/(receipts from) Subsidiary by Company	-	(923)	(923)		-	778		778
		Realised losses on financial assets held at fair value through profit or loss	(1,393)	-	(1,393)		(2,939)	-		(2,939)
		(Decrease)/increase in investment holdings fair value gains/(losses)	(4,959)	(7,620)	(12,579)		3,722	6,099		9,821
		Net income generated in Subsidiary	-	742	742		-	1,181		1,181
		Cash transfer from Subsidiary to Parent (Income from Subsidiary)	-	(824)	(824)		-	(1,107)		(1,107)
			______	_______	______		______	______		_____
		Closing fair value	21,274	16,230	37,504		28,472	24,855		53,327
			______	_______	______		______	______		_____

			£'000	£'000	£'000		£'000	£'000		£'000
		Closing book cost	25,366	13,226	38,592		27,606	14,971		42,577
		Closing investment holdings (losses)/gains	(4,092)	2,262	(1,830)		866	8,703		9,569
		Net income generated in Subsidiary	-	742	742		-	1,181		1,181
			_______	_______	_______		_______	______		______
		Closing fair value	21,274	16,230	37,504		28,472	24,855		53,327
			______	_______	______		______	______		_____

		The Company received £6,242,000 (31 August 2019: £7,643,000) from investments sold in the period. The book cost of these investments when they were purchased was £7,636,000 (31 August 2019: £9,824,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
	(b)	Investment in Subsidiary. The Company holds 100% of the share capital of its Subsidiary. The Company meets the definition of an investment entity, therefore it does not consolidate its Subsidiary but recognises it as an investment at fair value through profit or loss. The fair value of the Subsidiary is based on its net assets which comprises investments held at fair value, cash, income receivable and other receivables/payables. The Company receives income from its Subsidiary and there are no significant restrictions on the transfer of funds to or from the Subsidiary. During the year the Company received a net transfer from the Subsidiary of £923,000 (2019 - payment of £778,000).
	(c)	Transaction costs. During the year, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. The total costs were as follows:

						Year ended			Year ended
						31 August 2020			31 August 2019
						£'000			£'000
		Purchases				7			8
		Sales				5			7
						_______			_______
						12			15
						_______			_______

		The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations.

11.	Creditors: amounts falling due within one year
	Bank loan. The Company has a £6 million (2019 - £8 million) one year unsecured revolving multi-currency loan facility with Scotiabank Europe plc expiring on 14 August 2021. At the year end £5,500,000 was drawn down (2019 - £6,000,000 ) under the facility, fixed to 14 September 2020 at an all-in rate of 1.50713%.
	At the date this Report was approved, £5,500,000 was drawn down under this facility and fixed to 13 November 2020 at an all-in rate of 1.493%.
	Under the terms of the loan facility the Company's borrowings must not exceed 25% of adjusted NAV. Adjusted NAV is defined as total net assets less, inter alia, the aggregate of all excluded assets, excluded assets being, without double counting, the value of any unquoted assets, all investments issued by a single issuer in excess of 15% of total NAV, all Brazilian and Mexican bonds in excess of 30%, any MSCI Industry category in excess of 25%, and cash along with any shortfall in cash, equities and investment Grade bonds below 70%.
	The Directors are of the opinion that there is no significant difference between the carrying value and fair value of the bank loan due to its short term nature.

12.	Stated capital
		2020		2019
		Number	£'000	Number	£'000
	Issued and fully paid - Ordinary shares
	Balance brought forward	58,000,324	65,936	60,175,324	65,936
	Ordinary shares bought back in the period	(887,000)	-	(2,175,000)	-
		_______	_______	_______	_______
	Balance carried forward	57,113,324	65,936	58,000,324	65,936
		_______	_______	_______	_______

		2020		2019
		Number	£'000	Number	£'000
	Issued and fully paid - Treasury shares
	Balance brought forward	6,107,500	-	6,107,500	-
	Ordinary shares bought back in the period	-	-	-	-
		_______	_______	_______	_______
	Balance carried forward	6,107,500	-	6,107,500	-
		_______	_______	_______	_______
	Stated capital	63,220,824	65,936	64,107,824	65,936
		_______	_______	_______	_______

	The Company's Ordinary shares have no par value. The number of Ordinary shares authorised for issue is unlimited.
	During the year the Company bought back 887,000 (2019 - 2,175,000) Ordinary shares at a cost of £624,000 (2019 - £1,485,000) for cancellation. No Ordinary shares (2019 - none) were bought back for treasury.
	Shares held in treasury consisting of 6,107,500 (2019 - 6,107,500) Ordinary shares represent 9.66% (2019 - 9.53%) of the Company's total issued share capital at 31 August 2020.
	The Ordinary shares are entitled to all of the capital growth in the Company's assets and to all the income from the Company that is resolved to be distributed.

13.	Capital reserve
		2020	2019
		£'000	£'000
	At beginning of year	(20,885)	(25,861)
	Net currency gains	25	45
	Forward foreign currency contracts gains/(losses)	104	(108)
	Movement in investment holdings fair value (losses)/gains	(12,579)	9,821
	Loss on sales of investments	(1,393)	(2,939)
	Capitalised expenses	(191)	(358)
	Purchase of own shares	(624)	(1,485)
		_______	_______
	At end of year	(35,543)	(20,885)
		_______	_______

14.	Net asset value per Ordinary share. Net asset value per Ordinary share is based on a net asset value of £32,355,000 (2019 - £47,755,000) and on 57,113,324 (2019 - 58,000,324) Ordinary shares, being the number of Ordinary shares issued and outstanding at the year end.

15.

Risk management policies and procedures. The Company, and through its Subsidiary, invests in equities and sovereign bonds for the long term so as to achieve its objective. In pursuing its investment objective, the Company is exposed to a variety of financial risks that could result in a reduction in the Company's net assets and a reduction in the revenue available for distribution by way of dividends. The Company entered into forward foreign currency contracts for the purpose of hedging short term foreign currency cash flows consistent with its investment policy. As at 31 August 2020 there were 9 open positions in derivatives transactions (2019 - 12). The Company has not entered into forward foreign currency contracts for the purpose of hedging fair values as at each reporting date.

The Directors conclude that it is appropriate to present the financial risk disclosures of the Company and its wholly owned Subsidiary in combination as this accurately reflects how the Company uses its Subsidiary to carry out its investment activities, including those relating to portfolio allocation and risk management.

These financial risks of the Company and its Subsidiary are market risk (comprising market price risk, currency risk and interest rate risk), liquidity risk and credit risk, and the Directors' approach to the management of these risks, are set out below. The Board of Directors is responsible for the Company's risk management. The overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance.

The Board determines the objectives, policies and processes for managing the risks that are set out below, under the relevant risk category and relies upon ASFML's system of internal controls. The policies for the management of each risk are unchanged from the previous accounting period.

(a)

Market risk. The fair value of a financial instrument held by the Company and its Subsidiary may fluctuate due to changes in market prices. Market risk comprises - market price risk (see note 15(b)), currency risk (see note 15(c)) and interest rate risk (see note 15(d)). The Investment Manager assesses the exposure to market risk when making each investment decision, and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis.

(b)

Market price risk. Market price risks (i.e. changes in market prices other than those arising from interest rate risk or currency risk) may affect the value of the quoted investments.

Management of the risk. The Board monitors the risks inherent in the investment portfolio by ensuring full and timely access to relevant information from the Investment Manager. The Board meets regularly and at each meeting reviews investment performance. The Board monitors the Investment Manager's compliance with the Company's objectives, and is directly responsible for oversight of the investment strategy and asset allocation.

Concentration of exposure to market price risk. A geographical analysis of the Company's and Subsidiary's combined investment portfolio is shown in the Annual Report. This shows the significant amounts invested in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay. Accordingly, there is a concentration of exposure to those countries, though it is recognised that an investment's country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country.

Market price sensitivity. The following table illustrates the sensitivity of the return after taxation for the year and the equity to an increase or decrease of 20% (2019 - 10%) in the fair value of the Company's and its Subsidiary's investments. This level of change is considered to be reasonably possible based on observation of past and current market conditions. The sensitivity analysis is based on the Company's and its Subsidiary's investments at each balance sheet date and the investment management fees for the year ended 31 August 2020, with all other variables held constant.

2020

2019

Increase

Decrease

Increase

Decrease

in fair

value

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(30)

(21)

Capital return

7,422

(7,422)

5,235

(5,235)

_______

Impact on total return after tax for the year and net assets

7,392

(7,392)

5,214

(5,214)

_______

(c)

Currency risk. Most of the Company's assets (including indirectly through its investment in its Subsidiary), liabilities and income are denominated in currencies other than sterling (the Company's functional currency, and the currency in which it reports its results). As a result, movements in exchange rates may affect the sterling value of those items.

Management of the risk. The Investment Manager manages the Company's exposure to foreign currencies and reports to the Board on a regular basis.

The Investment Manager also manages the risk to the Company and its Subsidiary of the foreign currency exposure by considering the effect on the Company's NAV and income of a movement in the exchange rates to which the Company's and Subsidiary's assets, liabilities, income and expenses and those of its Subsidiary are exposed.

Income denominated in foreign currencies is converted into sterling on receipt. The Company and its Subsidiary do not use financial instruments to mitigate currency exposure in the period between the time that income is accrued in the financial statements and its receipt.

Foreign currency exposure. The table below shows, by currency, the split of the Company and Subsidiary's non-sterling monetary assets and investments that are denominated in currencies other than sterling. The exposure is shown on an aggregated basis and excludes forward currency contracts which are used for the purpose of ensuring the Company's foreign currency exposure is appropriately hedged.

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2020

£'000

Debtors (due from brokers, dividends and other receivables)

Cash

Creditors (due to brokers, accruals and other creditors)

(35)

(43)

_____

Total foreign currency exposure on net monetary items

(24)

Investments at fair value through profit or loss

1,380

18,284

1,583

2,932

7,065

2,233

2,223

1,634

_____

Total net foreign currency exposure

1,380

18,372

1,586

2,973

7,105

2,239

2,248

1,610

_____

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2019

£'000

Debtors (due from brokers, dividends and other receivables)

155

217

106

Cash

Creditors (due to brokers, accruals and other creditors)

(40)

(161)

_____

Total foreign currency exposure on net monetary items

116

106

Investments at fair value through profit or loss

877

28,601

2,207

2,597

11,488

1,883

3,116

2,025

_____

Total net foreign currency exposure

903

28,717

2,280

2,641

11,553

1,889

3,155

2,131

_____

Foreign currency sensitivity. The sensitivity of the total return after tax for the year and the net assets in regard to the movements in the Company's and its Subsidiary's foreign currency financial assets and financial liabilities and the exchange rates for the £/Argentine Peso (ARS), £/Brazilian Real (BRL), £/Chilean Peso (CLP), £/Colombian Peso (COP), £/Mexican Peso (MXN), £/Peruvian Nuevo Sol (PEN), £/Uruguayan Peso (UYU) and £/US Dollar (USD) are set out below. This sensitivity excludes forward currency contracts entered into for hedging short term cash flows.

It assumes the following changes in exchange rates:

£/Argentine Peso (ARS) +/-344% (2019 +/-269%) (maximum downside risk 100%)

£/Brazilian Real( BRL) +/-81% (2019 +/-19%)

£/Chilean Peso (CLP) +/-28% (2019 +/-1%)

£/Columbian Peso (COP) +/-32% (2019+/-8%)

£/Mexican Peso (MXN) +/-28% (2019 +/-1%)

£/Peruvian Nuevo Sol (PEN) +/-14% (2019 +/-7%)

£/Uruguayan Peso (UYU) +/-54% (2019+/-19%)

£/US Dollar (USD) +/-4% (2019 +/-7%)

These percentages have been determined based on the average market volatility in exchange rates in the previous 3 years and using the Company's and its Subsidiary's foreign currency financial assets and financial liabilities held at each balance sheet date.

For 2020, if sterling had weakened against the currencies shown, this would have had the following effect, with a strengthening of sterling having an equal and opposite effect with the exception of the Argentine Peso which is capped at 100% on the downside amounting to £nil for revenue returns and £1,380,000 for capital returns but on the upside revenue returns would increase by £nil and capital returns by £4,747,000:

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2020

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(63)

(1)

(12)

(19)

(1)

(13)

(1)

Capital return

(1,380)

(14,818)

(443)

(939)

(1,970)

(313)

(1,201)

(63)

_____

Impact on total return after tax for the year and net assets

(1,380)

(14,881)

(444)

(951)

(1,989)

(314)

(1,214)

(64)

_____

For 2019, if sterling had weakened against the currencies shown, this would have had the following effect, with a strengthening of sterling having an equal and opposite effect with the exception of the Argentine Peso which is capped at 100% on the downside amounting to £26,000 for revenue returns and £877,000 for capital returns but on the upside revenue returns would increase by £70,000 and capital returns by £2,359,000:

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2019

£'000

_____

____

_____

____

Statement of Comprehensive Income - return after tax

Revenue return

(26)

(29)

(4)

(2)

(7)

Capital return

(877)

(5,427)

(23)

(208)

(113)

(132)

(592)

(142)

_____

____

_____

Impact on total return after tax for the year and net assets

(903)

(5,456)

(23)

(212)

(115)

(132)

(599)

(149)

_____

____

_____

____

Foreign exchange contracts. The Company has entered into derivative transactions, in the form of forward exchange contracts, to ensure that exposure to foreign denominated cashflows is appropriately hedged. The following forward contracts were outstanding at the Balance Sheet date:

Local currency

Unrealised gain/(loss)

Buy

Sell

Settlement

Amount

Contracted

31 August 2020

Date of contract

Currency

date

'000

rate

£'000

1 July 2020

GBP

USD

7 October 2020

1.3393

1 July 2020

MXN

GBP

7 October 2020

1,584

29.4384

(35)

9 July 2020

USD

GBP

7 October 2020

601

1.3393

(33)

23 July 2020

MXN

USD

7 October 2020

239

29.4384

10 August 2020

COP

USD

25 November 2020

290

0.0002

10 August 2020

USD

BRL

25 November 2020

213

1.3395

10 August 2020

USD

PEN

25 November 2020

1,977

1.3395

(9)

10 August 2020

GBP

USD

7 October 2020

2,162

1.3393

148

21 August 2020

USD

GBP

7 October 2020

1.3393

(1)

Local currency

Unrealised gain/(loss)

Buy

Sell

Settlement

Amount

Contracted

31 August 2019

Date of contract

Currency

date

'000

rate

£'000

4 June 2019

GBP

MXN

12 September 2019

610

24.4922

(24)

4 June 2019

USD

GBP

12 September 2019

638

1.2184

5 July 2019

GBP

USD

10 October 2019

1,336

1.2199

(44)

5 July 2019

MXN

GBP

10 October 2019

1,887

24.6403

(24)

11 July 2019

GBP

USD

10 October 2019

456

1.2199

(15)

11 July 2019

USD

MXN

10 October 2019

1.2199

26 July 2019

GBP

USD

10 October 2019

105

1.2199

(2)

15 August 2019

COP

USD

21 November 2019

1,241

0.0002

15 August 2019

MXN

GBP

10 October 2019

24.6403

(2)

15 August 2019

USD

BRL

21 November 2019

683

1.2217

16 August 2019

USD

PEN

21 November 2019

1,853

1.2217

21 August 2019

USD

GBP

10 October 2019

1.2199

The fair value of forward exchange contracts is based on forward exchange rates at the Balance Sheet date.

A sensitivity analysis of foreign currency contracts is not presented as the Directors conclude that these are not significant given the short duration of the contracts and expected volatility of the respective foreign exchange rates over the term of the contracts.

(d)

Interest rate risk. Interest rate risk is the risk that arises from fluctuating interest rates. Interest rate movements may affect:

- the fair value of the investments in fixed interest rate securities;

- the level of income receivable on cash deposits;

- interest payable on the Company's variable interest rate borrowings.

The interest rate risk applicable to a bond is dependent on the sensitivity of its price to interest rate changes in the market. The sensitivity depends on the bond's time to maturity, and the coupon rate of the bond.

Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions.

Financial assets. The Company and its Subsidiary hold fixed rate government bonds with prices determined by market perception as to the appropriate level of yields given the economic background. Key determinants of market quoted prices include economic growth prospects, inflation, the relevant government's fiscal position, short-term interest rates and international market comparisons. The Investment Manager considers all these factors when making investment decisions. Each quarter the Board reviews the decisions made by the Investment Manager and receives reports on each market in which the Company and its Subsidiary invest together with economic updates.

Returns from bonds are fixed at the time of purchase, as the fixed coupon payments are known, as are the final redemption proceeds. This means that if a bond is held until its redemption date, the total return achieved is unaltered from its purchase date. However, over the life of a bond the market price at any given time will depend on the market environment at that time. Therefore, a bond sold before its redemption date is likely to have a different price to its purchase price and a profit or loss may be incurred.

Financial liabilities. The Company primarily finances its operations through use of equity and bank borrowings.

The Company has a revolving multi-currency facility, details of which are disclosed in note 11.

The Board actively monitors its bank borrowings. A decision on whether to roll over its existing borrowings will be made prior to their maturity dates, taking into account the Company's policy of not having any fixed, long-term borrowings.

Interest rate exposure. The exposure at 31 August of financial assets and financial liabilities to interest rate risk is shown by reference to floating interest rates - when the interest rate is due to be re-set.

2020

2019

Within

one year

Total

one year

Total

£'000

Exposure to floating interest rates

Cash

306

459

Borrowings under loan facility

(5,500)

(6,000)

_______

Total net exposure to interest rates

(5,194)

(5,541)

_______

The Company does not have any fixed interest rate exposure to cash or bank borrowings at 31 August 2020 (2019 - nil). Interest receivable and finance costs are at the following rates:

- interest received on cash balances, or paid on bank overdrafts, is at a margin below LIBOR or its foreign currency equivalent (2019 - same).

- interest paid on borrowings under the loan facility was at a margin above LIBOR. The weighted average interest rate of these at 31 August 2020 was 1.470987% (2019- 1.819063%).

Interest rate sensitivity. A sensitivity analysis demonstrates the sensitivity of the Company's results for the year to a reasonably possible change in interest rates, with all other variables held constant.

The sensitivity of the profit/(loss) for the year is the effect of the assumed change in interest rates on:

- the net interest income for the year, based on the floating rate financial assets held at the Balance Sheet date; and

- changes in fair value of investments for the year, based on revaluing fixed rate financial assets and liabilities at the Balance Sheet date.

If interest rates had been 50 basis points higher or lower and all other variables were held constant, the Company's net interest for the year ended 31 August 2020 would decrease/increase by £26,000 (2019 - £28,000). This is attributable to the Company's exposure to interest rates on its floating rate cash balances and bank loan.

If interest rates had been 50 basis points higher and all other variables were held constant, a change in fair value of the Company's fixed income financial assets at the year ended 31 August 2020 of £14,793,000 (2019 - £21,590,000) would result in a decrease of £444,000 (2019 - £617,000). If interest rates had been 50 basis points lower and all other variables were held constant, a change in fair value of the Company's fixed rate financial assets at the year ended 31 August 2020 would result in an increase of £465,000 (2019 - £648,000).

(e)

Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.

Management of the risk. All of the Company's and its Subsidiary's portfolios are investments in quoted bonds and equities that are actively traded. The Company's level of borrowings is subject to regular review.

The Company's investment policy allows the Investment Manager to determine the maximum amount of the Company's resources that should be invested in any one company.

Liquidity risk exposure. The remaining contractual maturities of the financial liabilities at 31 August 2020, based on the earliest date on which payment can be required are as follows (borrowings under the loan facility are subject to a resetting of the interest rate upon maturity):

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2020

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(5,504)

Amounts due on forward foreign currency contracts

(78)

Amounts due to brokers and accruals

(195)

______

(5,777)

______

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2019

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(6,005)

Amounts due on forward foreign currency contracts

(111)

Amounts due to brokers and accruals

(233)

______

(6,349)

______

(f)

Credit risk. The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Company or its Subsidiary suffering a loss. The Company is exposed to credit risk on debt instruments. These classes of financial assets are not subject to IFRS 9's impairment requirements as they are measured at FVTPL. The carrying value of these assets, under both IAS 39 and IFRS 9 represents the Company's maximum exposure to credit risk on financial instruments not subject to the IFRS 9 impairment requirements on the respective reporting dates (see table below "Credit Risk Exposure").

The Company's only financial assets subject to the expected credit loss model within IFRS 9 are cash and short-term other receivables. At 31 August 2020 the total of cash and short-term other receivables was £466,000 (2019 - £851,000).

As cash and short-term other receivables are impacted by the IFRS 9 model, the Company has adopted an approach similar to the simplified approach.

Management of the risk. Where the investment manager makes an investment in a bond, corporate or otherwise, where available, the credit rating of the issuer is taken into account so as to minimise the risk to the Company of default. Investment transactions are carried out with a number of brokers, whose credit-standing is reviewed regularly by ASFML, and limits are set on the amount that may be due from any one broker; the risk of counterparty exposure due to failed trades causing a loss to the Company or its Subsidiary is mitigated by the review of failed trade reports on a daily basis. In addition, the administrator carries out both cash and stock reconciliations to the custodians' records on a daily basis to ensure discrepancies are detected on a timely basis.

Cash is held only with reputable banks with high quality external credit ratings. None of the Company's or its Subsidiary's financial assets have been pledged as collateral.

Credit risk exposure. In summary, compared to the amounts included in the Balance Sheet, the maximum exposure to credit risk at 31 August was as follows:

2020

2019

Balance

Maximum

Balance

Maximum

Sheet

exposure

Sheet

exposure

£'000

Non-current assets

Bonds at fair value through profit or loss^{A}

14,793

21,590

Current assets

Cash

306

459

Other receivables

160

392

Forward foreign currency contracts

162

______

15,421

22,503

______

^{A} Includes quoted bonds held by the Company and its Subsidiary on an aggregated basis.

None of the Company's and Subsidiary's financial assets are secured by collateral or other credit enhancements and none are past their due date or impaired.

Credit ratings. The table below provides a credit rating profile using Standard and Poors credit ratings for the bond portfolio at 31 August 2020 and 31 August 2019:

2020

2019

£'000

A-

1,488

7,632

BB-

4,166

8,195

BBB+

3,556

BBB

2,120

2,661

BBB-

2,477

2,598

Non-rated

986

504

______

14,793

21,590

______

At 31 August 2020 the Standard and Poors credit ratings agency did not provide a rating for a Colombian bond, a Peruvian bond and an Uruguayan bond (2019 - an Argentinian bond and an Uruguayan corporate bond) held by the Company and were accordingly categorised as non-rated in the table above. It is however noted that Moodys credit ratings agency do provide an A3 rating for the Peruvian bond valued at £429,000 (2019 - £478,000) and Fitch a BBB- rating for the Uruguayan bond valued at £103,000 (2019 - £454,000).

At 31 August 2020 the Company held cash of £306,000 (2019 - £459,000) with BNP Paribas SA, which has a credit rating of A-1 (2019 - A-1) with Standard and Poors. No ECL adjustments have been made since the risk is considered negligible.

16.	Capital management policies and procedures. The Company's capital management objectives are:
	- to ensure that it will be able to continue as a going concern; and
	- to maximise the income and capital return to its Equity Shareholders through equity capital and debt.
	The Company's capital at 31 August 2020 comprises its equity capital and reserves that are shown in the Balance Sheet at a total of £32,355,000 (2019 - £47,755,000). As at 31 August 2020 gross debt as a percentage of net assets stood at 17.0% (2019 - 12.6%).
	The Board, with the assistance of Aberdeen Standard Investments, monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes:
	- the planned level of gearing, which takes account of Aberdeen Standard Investment's views on the market;
	- the need to buy back Ordinary shares for cancellation or treasury, which takes account of the difference between the net asset value per share and the share price (i.e. the level of share price discount);
	- the need for new issues of Ordinary shares, including issues from treasury; and
	- the extent to which distributions from reserves may be made.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.

17.	Related party transactions
	Directors' interests. Fees payable during the year to the Directors are disclosed within the Directors' Remuneration Report in the Annual Report and in note 6.
	Transactions with the Manager. Under the terms of the management agreement with the Company, ASCIL is entitled to receive both a management fee and a company secretarial and administration fee. Details of the management fee arrangements are presented in note 5. The company secretarial and administration fee is based on an annual amount of £125,000 (2019 - £122,000), increasing annually in line with any increases in the UK Retail Prices Index, payable quarterly in arrears. During the year £42,000 (2019 - £73,000) was payable after the deduction of a rebate £83,000 (2019 - £49,000) to bring the OCR down to 2.0%, with £42,000 (2019 - £42,000) outstanding at the period end.
	The Manager has agreed to ensure that the Company's OCR will not exceed 2.0% when calculated annually as at 31 August. Until further notice, to the extent that the OCR ever exceeds 2.0% the Manager will rebate part of its fees in order to bring that ratio down to 2.0%.
	Subsidiary. The Company owns 100% of the share capital of the Subsidiary. Details of the movements in the investment are presented in note 10.

18.	Controlling party. The Company has no immediate or ultimate controlling party.

19.	Fair value hierarchy. IFRS 13 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
	The Company has classified fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
	Level 1:		quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2:		inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
	Level 3:		inputs for the asset or liability that are not based on observable market data (unobservable inputs).
	Financial assets and financial liabilities are either carried in the balance sheet at their fair value (investments and forward currency contracts) or the balance sheet amount is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and amounts due under the loan facility).
	The financial assets and liabilities measured at fair value in the Balance Sheet grouped into the fair value hierarchy at 31 August 2020 are as follows:

					Level 1	Level 2	Total
				Note	£'000	£'000	£'000
	Financial assets/(liabilities) at fair value through profit or loss
	Quoted equities			a)	10,647	-	10,647
	Quoted bonds			b)	-	10,627	10,627
	Investment in Subsidiary			c)	-	16,230	16,230
					_______	_______	_______
					10,647	26,857	37,504
	Forward foreign currency contracts			d)	-	162	162
	Forward foreign currency contracts			d)	-	(78)	(78)
					_______	_______	_______
	Net fair value				10,647	26,941	37,588
					_______	_______	_______

					Level 1	Level 2	Total
	As at 31 August 2019			Note	£'000	£'000	£'000
	Financial assets/(liabilities) at fair value through profit or loss
	Quoted equities			a)	15,077	-	15,077
	Quoted bonds			b)	-	13,395	13,395
	Investment in Subsidiary			c)	-	24,855	24,855
					_______	_______	_______
					15,077	38,250	53,327
	Forward foreign currency contracts			d)	-	62	62
	Forward foreign currency contracts			d)	-	(111)	(111)
					_______	_______	_______
	Net fair value				15,077	38,201	53,278
					_______	_______	_______

	There were no assets for which significant unobservable inputs (Level 3) were used in determining fair value during the years ended 31 August 2020 and 31 August 2019. For the years ended 31 August 2020 and 31 August 2019 there were no transfers between any levels.
	a)	Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.
	b)	Quoted bonds. The fair value of Level 2 quoted bonds has been determined by reference to their quoted bid prices within markets not considered to be active. Index linked bonds are adjusted for indexation arising from the movement of the consumer prices index within the country of their incorporation.
	c)	Investment in Subsidiary. The Company's investment in its Subsidiary is categorised in Fair Value Level 2 as its fair value has been calculated with reference to its unadjusted net asset value. The net asset value is primarily driven by the value of underlying investments, which are all valued using adjusted quoted prices, and other net assets held at amortised cost, including cash. There are no significant inputs used for the valuation that are not observable to the Directors.
	d)	Forward foreign currency contracts. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

20.	Analysis of changes in financial liabilities during the year. The following tables shows the movements of financial liabilities in the Statement of Financial Position during the years ended 31 August 2020 and 31 August 2019:

		At		Other	At
		1 September 2019	Cash flows	Movements ^{A}	31 August 2020
		£000	£000	£000	£000
	Financing activities
	Bank loan	(6,000)	500	-	(5,500)
	Amounts due relating to repurchase of own shares	(28)	652	(624)	-
		_______	_______	_______	_______
	Total	(6,028)	1,152	(624)	(5,500)
		_______	_______	_______	_______

		At		Other	At
		1 September 2018	Cash flows	movements^{A}	31 August 2019
		£000	£000	£000	£000
	Financing activities
	Bank loan	(6,500)	500	-	(6,000)
	Amounts due relating to repurchase of own shares	(12)	1,469	(1,485)	(28)
		_______	_______	_______	_______
	Total	(6,512)	1,969	(1,485)	(6,028)
		_______	_______	_______	_______

	^{A} The other movements column represents the cost of repurchasing own shares as disclosed in the Statement of Changes in Equity.

21.	Subsequent events. There has been no events subsequent to the year end, which the Directors consider would have a material impact on the financial statements. :

The Annual General Meeting will be held at 10.00 a.m. on 10 December 2020 at 1^st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 August 2020 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The Annual Report and financial statements will be delivered to the Jersey Financial Services Commission in due course.

The audited Annual Report and financial statements will be posted in November. Copies may be obtained during normal business hours from the Company's Registered Office, Aberdeen Standard Capital International Limited, 1^st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB or from the Company's website, latamincome.co.uk*.

* Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

By Order of the Board

Aberdeen Standard Capital International Limited

Secretary

4 November 2020

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