Half-year Report

RNS Number : 7165D

Aberdeen Emerging Markets Inv Co Ld

27 June 2019

 

Aberdeen Emerging Markets Investment Company Limited

LEI: 213800RIA1NX8DP4P938

A UK-listed investment company, seeking consistent returns
from a diversified portfolio of emerging market funds

Half-Yearly Financial Report
For the six months ended 30 April 2019

Financial Highlights

For the six month period ended 30 April 2019

Aberdeen Emerging Markets Investment Company Limited ("AEMC" or the "Company") is a closed-end investment company with its Ordinary shares listed on the premium segment of the London Stock Exchange. It offers investors exposure to some of the best investment talent within the global emerging markets of Asia, Eastern Europe, Africa and Latin America.

The Company is governed by a board of independent directors, and has no employees. Like most other investment companies, it outsources its investment management and administration to an investment management group, the Standard Life Aberdeen Group, and other third party providers.

Net asset value ("NAV") per Ordinary share total return1,4			NAV per Ordinary share2
+13.7%			672.1p
31 October 2018	-12.4%		31 October 2018	600.6p
Ordinary share price total return1,4			Ordinary share price - mid market
+15.8%			585.0p
31 October 2018	-15.7%		31 October 2018	515.0p
MSCI Emerging Markets Net Total Return Index in sterling terms			Net Assets
+11.2%			£308.9 million
31 October 2018	-9.0%		31 October 2018	£276.6 million
Net Gearing3,4			Revenue return per Ordinary share
+8.1%			1.27p
31 October 2018	+7.0%		31 October 2018	2.03p

¹ Performance figures stated above include reinvestment of dividends on the ex-date

² See note 7 in the Notes to these Financial Statements for basis of calculation

³  Based on the net of the drawn down loan value and cash, as a percentage of NAV

⁴ Definitions of these Alternative Performance Measures ('APMs') together with how these have been calculated can be found below

Investment Objective

The Company's investment objective is to achieve consistent returns for shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms (the "Benchmark").

Benchmark

MSCI Emerging Markets Net Total Return Index in sterling terms.

Management

The Company's Manager is Aberdeen Standard Fund Managers Limited ("ASFML", the "AIFM" or the "Manager") which has delegated the investment management of the Company to Aberdeen Asset Managers Limited ("AAML" or the "Investment Manager"). Both companies are wholly owned subsidiaries of Standard Life Aberdeen plc, which was formed by the merger of Aberdeen Asset Management PLC and Standard Life plc in August 2017. Aberdeen Standard Investments is a brand of the investment business of the merged entity.

The Company's portfolio is managed by Aberdeen Standard Investments' highly experienced Closed End Fund Strategies ("CEFS") team, which is amongst the most experienced of any operating globally with a similar strategy.

Chairman's Statement

The Company delivered strong absolute and relative returns for the six month period ended 30 April 2019. The Company's net asset value ("NAV") total return was 13.7% which compares to a total return of 11.2% from the benchmark index, the MSCI Emerging Markets Net Total Return Index (in sterling terms). The share price total return was 15.8%, reflecting a narrowing of the discount to NAV at which the shares trade.

Emerging market equities outperformed developed markets during the period. Most of the gains were made during the first months of 2019 as a result of a more accommodative policy stance from the Federal Reserve in response to market volatility and, as appeared likely at that time, the prospect of a resolution to the US-China trade dispute. Strong performances from the Chinese and Indian stock markets resulted in Asia being the best performing emerging market region during the period.

The largest contribution to performance was made by manager selection, particularly in Asia, where a number of holdings in the portfolio outperformed. The Company also benefited from its exposure to Chinese A Shares through the Aberdeen Standard China A Share Equity Fund. Discount narrowing of the closed end funds within the portfolio also contributed to the outperformance for the period. Asset allocation was a small detractor due to the Company's overweight positions in Eastern Europe and frontier markets.

A detailed explanation of developments in markets and performance for the period is contained within the Investment Manager's Report.

Dividends

A first interim dividend of 5.25p per share was paid on 29 March 2019 and a second interim dividend of 5.25p per share will be paid on 28 June 2019. The Board now declares a third interim dividend in respect of the year of 5.25p per share payable on 27 September 2019 to those shareholders on the register on 30 August 2019.

In the absence of unforeseen circumstances, the Board anticipates declaring one further interim dividend in respect of the current financial year, of at least 5.25p per share. It is therefore anticipated that the total dividend for the year will be no less than 21p per share. In respect of future years, the Board intends to continue to pay interim dividends on a quarterly basis, in March, June, September and December.

The payment of any dividends will be subject to compliance with all necessary regulatory obligations of the Company, including the Companies (Guernsey) Law 2008 (as amended) solvency test, compliance with its loan covenants, and will also be subject to the Company retaining sufficient cash for its working capital requirements.

Loan Facility and Gearing

During the period, the Board announced the renewal of the Company's £25 million multicurrency revolving loan facility for a further year to 29 March 2020. The Board believes that the use of gearing, which is one of the advantages of a closed ended structure, within pre-determined ranges and at times when the Investment Manager sees attractive investment opportunities, will be beneficial to the longer term performance of the Company. At the end of the period, an amount of £25 million was drawn down under the facility, representing gearing, net of cash, of 8.1%.

Discount and Share Buy Backs

The discount of the share price to NAV at the end of the period was 13.0%, compared to 14.3% as at 31 October 2018. The Board monitors the discount on an ongoing basis. During the period, in accordance with its stated discount management policy, the Company bought back 81,937 Ordinary shares to hold in treasury. Shares held in treasury may only be resold at a price that represents a premium to the prevailing NAV per share.

Board Composition

During the period, the Board was pleased to announce the appointment of Eleonore de Rochechouart as an independent non-executive Director of the Company with effect from 16 April 2019.  

Eleonore is a partner of Res Familiaris LLP, a wealth management advisory boutique. Prior to joining Res Familiaris in 2010, Eleonore spent 20 years in the financial services industry as an economist, researcher and asset allocator in both the traditional and alternative investment arena.

Outlook

Notwithstanding continuing uncertainties regarding US-China trade tensions, emerging market valuations remain attractive on both an absolute and relative basis. In addition, investors remain significantly underweight in emerging markets. These factors should offer some support in the current environment and enhance the prospects for good longer term returns.

The Board continues to believe that shareholders benefit from the diversification provided by the Company's approach of investing through a portfolio of specialist funds run by talented managers with strong investment propositions, providing an attractive means for investors to benefit from the longer term investment opportunity in emerging markets.

Mark Hadsley-Chaplin
Chairman

27 June 2019

Investment Manager's Report

During the first half of its financial year the Company's net asset value ("NAV") per Ordinary share total return was 13.7%, while the MSCI Emerging Markets Net Total Return Index (the "Benchmark") gained 11.2%. The Ordinary share price total return was 15.8%, as the discount to NAV at which the Company's Ordinary shares trade narrowed to 13.0%, from 14.3% at the start of the period.

Performance attribution for the period reveals the largest contributor to the Company's relative outperformance was Manager selection, particularly in Asia, where Schroder AsiaPacific Fund PLC, Schroder Taiwanese Equity Fund, Fidelity China Special Situations PLC and Weiss Korea Opportunity Fund all outperformed their respective benchmarks. In China, a key driver of strong performance was overweight exposure to Chinese A Shares, which rebounded strongly from a torrid 2018. The Company's investments in global emerging markets closed end funds also added value, with JP Morgan Emerging Markets Investment Trust PLC and Genesis Emerging Markets Fund Limited performing strongly.

Discounts to net asset value narrowed on the Company's closed end holdings, further contributing to relative performance. The weighted average discount to NAV at which those holdings trade narrowed from 10.4% to 9.0% over the period. Fidelity China Special Situations PLC, Schroder AsiaPacific Fund PLC and BlackRock Latin American Investment Trust PLC were amongst those to see the most pronounced narrowing, reflecting increased appetite for the underlying asset classes and improving relative performance. In addition, participation in tender offers from Edinburgh Dragon Trust PLC and The China Fund Inc alongside the liquidation of BlackRock Emerging Europe PLC generated one-off uplifts through exits at discounts close to NAV.

Asset allocation was marginally positive driven by the Company's overweight position in Saudi Arabia.

During the period, the Company's revolving credit facility was fully drawn the majority of the time, generating a small detractor to overall performance.

NAV Performance attribution for the 6 month period ended 30 April 2019
Fund Selection	2.0%
Asia	2.2%
EMEA	(0.6%)
Latin America	(0.4%)
Global Emerging	0.8%
Asset Allocation	0.2%
Asia	0.1%
EMEA	0.3%
Latin America	(0.1%)
Cash / gearing (direct and underlying)	(0.1%)
Discount Narrowing	0.8%
Fees and Expenses	(0.5%)
Excess return	2.5%

Market Environment

The closing months of 2018 witnessed sharp declines in developed market equities, with the MSCI USA and World Indices falling by 7.3% and 6.5% respectively in the final two months of the year. Emerging markets outperformed significantly, gaining 1.4% over the same timeframe. Moving into 2019, equity markets globally recovered sharply, helped by the accommodative stance adopted by the Federal Reserve in response to market volatility and the prospect of a resolution to the US-China trade spat.

Given the latter point and the impact of domestic stimulus efforts, it is perhaps not surprising that China was the epicenter of the rally in emerging markets, with the MSCI China Index 18.8% higher over the period. The Indian market also performed strongly (MSCI India +16.3%), despite uncertainty in the build up to the country's general election. The strong performance of these two markets ensured Asia was the best performing emerging market region (MSCI Emerging Asia +12.8%) despite lacklustre returns in markets such as Korea (MSCI Korea +4.6%), Thailand (MSCI Thailand +3.9%) and Malaysia (MSCI Malaysia -2.1%).

In Europe, the Middle East and Africa, the South African market stood out (MSCI South Africa +19.2%), helped by the strong performance of mining companies, a number of which rallied by over 50% as supply disruptions in Brazil and Australia drove commodity prices and related currencies higher. The Russian market continued a stealthy recovery (MSCI Russia +9.1%) with the strength of oil prices in 2019 proving supportive. Smaller emerging and frontier markets within this broad region delivered mixed returns, with Egypt (MSCI Egypt +20.1%) and Kenya (MSCI Kenya +17.6%) both rallying, while Nigeria (MSCI Nigeria -7.7%) and Romania (MSCI Romania -6.0%) declined as a consequence of political and policy concerns. In Romania, these stemmed from proposed new tax proposals. In Nigeria, February's general election was considered by most to be a sham, with the incumbent President Buhari returning to office amidst widespread allegations of electoral fraud.

Latin America delivered modest returns. The dominant market of Brazil made only a marginal gain over the period (MSCI Brazil +1.2%), as it retreated sharply from all time high levels (in local currency terms) that were reached in February. In another instance of frontier markets diverging from their emerging neighbors, Argentina (MSCI Argentina -11.1%) performed poorly, with the possibility of Cristina Fernandez de Kirchner displacing Mauricio Macri in elections towards the end of 2019 serving to spook investors.

Portfolio

It was an active period for the portfolio. New positions were initiated to provide actively managed exposure to Middle Eastern Equities (Diversified Growth Company QIC GCC Equity Fund - USD Class B) and China A Shares (Aberdeen Standard SICAV I - China A Share Equity Fund - USD Class Z). Both allocations were based on the usual combination of top down and bottom up considerations.

In the Middle East, valuations are attractive and growth prospects are well supported by the oil price recovery. By the end of 2019, Saudi Arabia will have joined the MSCI Emerging Markets Index with a c.4% weight. This will likely attract greater investor interest in this overlooked region. The manager of Diversified Growth Company QIC GCC Equity Fund - USD Class Bt Fund is based in Doha and has been well known to us for many years. The portfolio is managed with high conviction and is currently 63% invested in Saudi Arabia, 16% in UAE and 12% in Kuwait.

The allocation to Chinese A Shares reflects a more tactical decision, with the market having been brutally penalised in the fallout from US-China trade discussions in 2018, and this weakness having pushed valuations to extreme levels. The allocation was made in the middle of February, which proved a well-timed entry point. Aberdeen Standard SICAV I - China A Share Equity Fund - USD Class Z is a large, liquid fund invested in a concentrated portfolio of high quality, reasonably valued A Share companies. As with all investments into "in-house" managed funds, there is no double charging of fees.

These purchases were funded from the sale of exchange traded funds in Turkey and Saudi Arabia, the full redemption of our previously core South African manager (based on a deteriorating outlook for that market combined with a disappointing spell of performance), the proceeds of the liquidation of BlackRock Emerging Europe PLC and tender offers in Edinburgh Dragon Trust PLC and The China Fund Inc.

In the closed end fund portion of the portfolio, the major change was the introduction of two new Indian holdings, which were initiated following significant underperformance of the Indian market relative to other emerging markets as pre-election "jitters" weighed on sentiment in early 2019. This relative weakness encouraged discounts on Indian funds to widen and we were able to build positions in Aberdeen New India Investment Trust PLC and JP Morgan Indian Investment Trust at attractive levels. The board of JP Morgan Indian Investment Trust PLC has committed to offer a tender for up to 25% of the issued share capital at NAV less costs, should the company underperform the benchmark index over the three years to 30 September 2019. At present, it looks highly likely that the tender offer will be triggered as performance over the first two and a half years of the measurement period has lagged the benchmark by over 10%.

The balance of investments by structure at the end of the period is shown below. The weighted average discount to NAV on the closed end portion of the portfolio was 9.0% at the end of the period. This compares to 10.4% at the start of the period. The Company's revolving credit facility was fully drawn at the end of the period, representing net gearing of 8.1%.  

	30 April 2019	31 October 2018
Closed ended investment funds	47.5%	48.6%
Open ended investment funds	54.5%	53.1%
Market access products	6.0%	5.3%
Cash and other net assets	-8.0%	-7.0%

The Company's geographic asset allocation is shown below. The portfolio activity described above resulted in a meaningful decrease in South Africa, whilst India, China and Saudi Arabia were increased. At the end of the period, 12.1% of NAV was allocated to frontier markets, with the major exposures being Romania, Saudi Arabia, Nigeria and Argentina. 

Market Outlook

At the time of writing, emerging markets have given back some of their year to date gains following an unexpected ratcheting up of US-China trade war tensions. While it is impossible to say whether this is a negotiating tactic from President Trump or a more significant development, investors have reacted negatively to the added uncertainty.

As for the other supportive factors of the recent rally, they remain largely intact, with the US Federal Reserve looking more likely to cut rates than increase them over the remainder of 2019 and Chinese domestic policy stimulus still in place. Valuations in emerging markets remain attractive on both an absolute and relative basis, while earnings expectations are low, meaning that the risk of significant disappointment on that front is largely absent. All the while, global investors remain significantly underweight emerging markets. If a fully blown trade war ensues then these factors may count for little but if that is not the outcome then the prospects for the rally to continue appear promising.

Aberdeen Asset Managers Limited

27 June 2019

Investments

As at 30 April 2019 Company	Country of establishment	Value (£'000)	Percentage of net assets (%)
Neuberger Berman - China Equity Fund	Ireland	30,168	9.8
Schroder International Selection Taiwanese Equity Fund	Luxembourg	23,757	7.7
Schroder AsiaPacific Fund PLC	United Kingdom	22,942	7.4
Fidelity China Special Situations PLC	United Kingdom	19,908	6.4
Brown Advisory Latin American Fund - USD Class SI	Ireland	19,733	6.4
Weiss Korea Opportunity Fund Limited	Guernsey	19,505	6.3
Avaron Emerging Europe Fund	Estonia	14,554	4.7
Diversified Growth Company QIC GCC Equity Fund - USD Class B	Luxembourg	13,500	4.4
Genesis Emerging Markets Fund Limited	Guernsey	12,832	4.1
JPMorgan Emerging Markets Investment Trust PLC	United Kingdom	11,971	3.9
Top ten holdings		188,870	61.1
Lazard Emerging World Fund - Retail	Ireland	10,981	3.5
Laurium Capital International Cayman Feeder SP	Cayman Islands	10,644	3.4
Aberdeen Standard SICAV I - China A Share Equity Fund - USD Class Z	Luxembourg	10,123	3.3
BlackRock Latin American Investment Trust PLC	United Kingdom	9,498	3.1
Korea Value Strategy Fund Ltd - Class B	British Virgin Islands	9,494	3.1
Schroder Oriental Income Fund Limited	Guernsey	9,492	3.1
Verno Capital Growth Fund Limited	Cayman Islands	9,146	2.9
Ton Poh Fund - Class C	Cayman Islands	8,020	2.6
iShares J.P. Morgan $ EM Bond UCITS ETF USD	Ireland	7,952	2.6
Komodo Fund - Class S	Cayman Islands	7,068	2.3
Next ten holdings		92,418	29.9
Top twenty holdings		281,288	91.0
Fondul Proprietatea	Romania	6,942	2.2
Vanguard FTSE Emerging Markets Index Fund	United States	6,659	2.2
Baring Vostok Investments PCC Limited	Guernsey	6,061	2.0
JPMorgan Indian Investment Trust PLC	United Kingdom	5,957	1.9
The China Fund Inc	United States	4,444	1.4
Edinburgh Dragon Trust PLC	United Kingdom	4,119	1.3
JPMorgan Russian Securities PLC	United Kingdom	3,729	1.2
Aberdeen New India Investment Trust PLC	United Kingdom	3,593	1.2
Global X MSCI Colombia ETF	United States	3,280	1.1
Taiwan Fund Inc	United States	3,116	1.0
Aberdeen Standard Asia Focus PLC	United Kingdom	1,394	0.5
Aberdeen Asian Income Fund Limited	United Kingdom	1,314	0.4
Tarpon All Equities Cayman (Series B) L.P.	Cayman Islands	1,187	0.4
iShares MSCI Turkey UCITS ETF	Turkey	506	0.2
Total holdings		333,589	108.0
Cash and other net assets		(24,640)	(8.0)
Total		308,949	100.0

Asset Allocation

As at 30 April 2019
Country split	Company (%)	Benchmark (%)
Asia	68.0	74.3
China	30.6	33.0
India	6.1	9.2
Indonesia	3.0	2.2
Korea	11.4	12.8
Malaysia	0.3	2.1
Philippines	0.5	1.1
Singapore	1.3	-
Taiwan	10.8	11.6
Thailand	3.1	2.3
Vietnam	0.5	-
Other	0.4	-
EMEA	22.2	14.2
Czech Rep	0.4	0.2
Egypt	1.1	0.1
Greece	-	0.2
Hungary	0.1	0.3
Kenya	0.6	-
Poland	1.1	1.1
Qatar	0.3	1.0
Romania	3.1	-
Russia	6.3	3.8
Saudi Arabia	2.8	-
South Africa	1.0	6.2
Turkey	1.1	0.5
UAE	0.7	0.8
Other	3.6	-
Latin America	13.5	11.5
Brazil	7.0	7.0
Chile	0.6	1.0
Colombia	1.9	0.4
Mexico	1.4	2.7
Peru	1.3	0.4
Other	1.3	-
Non-specified	0.7	-
Cash in underlying	3.7	-
Portfolio cash	(8.1)	-
Total	100.0	100.0

Interim Management Report

The Chairman's statement and the Investment Manager's Report provide details on the performance of the Company. Those reports also include an indication of the important events that have occurred during the first six months of the financial year ending 31 October 2019 and the impact of those events on the condensed unaudited financial statements included in this Half-Yearly Financial Report.

Details of investments held and the asset allocation at the period end are shown above.

Principal Risks and Uncertainties

The Board considers that the main risks and uncertainties faced by the Company fall into the categories of (i) general market risks associated with the Company's investments, (ii) emerging markets, (iii) other portfolio specific risks and (iv) internal risks (corporate governance and internal control). A detailed explanation of these risks and uncertainties can be found in the Company's most recent Annual Report for the year ended 31 October 2018 (the ''Annual Report''). The principal risks and uncertainties facing the Company remain unchanged from those disclosed in the Annual Report. The Chairman's Statement and the Investment Manager's Report contain market outlook sections.

Related Party Transactions

Full details of the investment management arrangements were provided in the Annual Report. There have been no changes to the related party transactions described in the Annual Report that could have a material effect on the financial position or performance of the Company. Amounts payable to the Manager in the six months ended 30 April 2019 are detailed in note 8 of the notes to the condensed set of financial statements.

Going Concern

See note 2 for details on going concern.

Signed on behalf of the Board of Directors on 27 June 2019

Helen Green
Director

Independent Review Report

To Aberdeen Emerging Markets Investment Company Limited

Conclusion 

We have been engaged by Aberdeen Emerging Markets Investment Company Limited  (the "Company") to review the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 April 2019 of the Company which comprises the Condensed Unaudited Statement of Comprehensive Income, the Condensed Unaudited Statement of Financial Position, the Condensed Unaudited Statement of Changes in Equity, the Condensed Unaudited Statement of Cash Flow and the related explanatory notes. 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 April 2019 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules (the "DTR") of the UK's Financial Conduct Authority (the "UK FCA").   

Scope of review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  We read the other information contained in the Half-Yearly Financial Report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion. 

Directors' responsibilities 

The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors.  The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the DTR of the UK FCA. 

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards.  The Directors are responsible for preparing the condensed set of financial statements included in the Half-Yearly Financial Report in accordance with IAS 34 as adopted by the EU. 

Our responsibility  

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review. 

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Company in accordance with the terms of our engagement letter to assist the Company in meeting the requirements of the DTR of the UK FCA.  Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Barry Ryan
For and on behalf of
KPMG Channel Islands Limited
Chartered Accountants
Guernsey

27 June 2019

Statement of Directors' Responsibilities

In respect of the Half-Yearly Financial Report, the Directors confirm that to the best of their knowledge: 

·      the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting; and

·      the Interim Management Report which includes the Chairman's Statement, Investment Manager's Report and Interim Management Report includes a fair review of the information required by:

(a)   DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year;  and

(b)   DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or the performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website, but not for the content of any information included on the website that has been prepared or issued by third parties, and for the preparation and dissemination of financial statements.  Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Signed on behalf of the Board of Directors on 27 June 2019

Helen Green
Director

Condensed Unaudited Statement of Comprehensive Income

		Six months to 30 April 2019				Six months to 30 April 2018
		Revenue	Capital	Total		Revenue	Capital	Total
	Note	£'000	£'000	£'000		£'000	£'000	£'000
Gains/(losses) on investments at fair value through profit or loss		-	37,402	37,402		-	(1,843)	(1,843)
Losses on currency movements		-	(293)	(293)		-	(326)	(326)
Net investment gains/(losses)		-	37,109	37,109		-	(2,169)	(2,169)
Investment income		2,356	-	2,356		2,009	-	2,009
Total income		2,356	37,109	39,465		2,009	(2,169)	(160)
Investment management fees		(1,111)	-	(1,111)		(1,368)	-	(1,368)
Other expenses		(423)	-	(423)		(425)	-	(425)
Operating profit/(loss) before finance costs and taxation		822	37,109	37,931		216	(2,169)	(1,953)
Finance costs	10	(131)	-	(131)		(156)	-	(156)
Operating profit/(loss) before taxation		691	37,109	37,800		60	(2,169)	(2,109)
Withholding tax expense		(107)	-	(107)		(130)	-	(130)
Total profit/(loss) and comprehensive income for the period		584	37,109	37,693		(70)	(2,169)	(2,239)
Earnings per Ordinary share	6	1.27p	80.61p	81.88p		(0.14p)	(4.27p)	(4.41p)

The total column of this statement represents the Company's Statement of Comprehensive Income, prepared under IAS 34. The revenue and capital columns, including the revenue and capital earnings per Ordinary share data, are supplementary information prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The notes form an integral part of these financial statements.

Condensed Unaudited Statement of Financial Position

	Note		As at		As at		As at
			30 April 2019		30 April 2018		31 October 2018*
			£'000		£'000		£'000
Non-current assets
Investments at fair value through profit or loss	3		333,589		342,968		295,601
Current assets
Cash and cash equivalents			663		2,719		1,037
Other receivables			256		311		297
			919		3,030		1,334
Total assets			334,508		345,998		296,935
Current liabilities
Interest payable			(27)		(22)		(28)
Other payables			(532)		(846)		(351)
Bank loan payable	10		(25,000)		(25,000)		(20,000)
Total liabilities			(25,559)		(25,868)		(20,379)
Net assets			308,949		320,130		276,556
Equity
Share capital	5		149,616		150,076		150,082
Capital reserve			165,801		177,176		132,546
Revenue reserve			(6,468)		(7,122)		(6,072)
Total equity			308,949		320,130		276,556
Net assets per Ordinary share	7		672.14p		695.22p		600.59p
Number of Ordinary shares in issue (excluding shares held in treasury)			45,965,159		46,047,096		46,047,096

*Audited

Approved by the Board of Directors and authorised for issue on 27 June 2019 and signed on their behalf by:

Helen Green
Director

The notes form an integral part of these financial statements.

Condensed Unaudited Statement of Changes in Equity

		Share	Capital	Revenue
		capital	reserve	reserve	Total
For the six months to 30 April 2019	Note	£'000	£'000	£'000	£'000
Balance at 1 November 2018		150,082	132,546	(6,072)	276,556
Profit for the period		-	37,109	584	37,693
Dividends paid	9	-	(3,854)	(980)	(4,834)
Share buybacks	5	(466)	-	-	(466)
Balance at 30 April 2019		149,616	165,801	(6,468)	308,949
		Share	Capital	Revenue
		capital	reserve	reserve	Total
For the six months to 30 April 2018		£'000	£'000	£'000	£'000
Balance at 1 November 2017		183,930	184,593	(7,052)	361,471
Loss for the period		-	(2,169)	(70)	(2,239)
Dividends paid		-	(5,248)	-	(5,248)
Tender offer	5	(33,413)	-	-	(33,413)
Tender offer costs		(260)	-	-	(260)
Share buybacks	5	(181)	-	-	(181)
Balance at 30 April 2018		150,076	177,176	(7,122)	320,130
		Share	Capital	Revenue
		capital	reserve	reserve	Total
For the year ended 31 October 2018*		£'000	£'000	£'000	£'000
Balance at 1 November 2017		183,930	184,593	(7,052)	361,471
(Loss)/profit for the year		-	(41,964)	980	(40,984)
Dividends paid		-	(10,083)	-	(10,083)
Tender offer	5	(33,413)	-	-	(33,413)
Tender offer costs		(254)	-	-	(254)
Share buybacks	5	(181)	-	-	(181)
Balance at 31 October 2018		150,082	132,546	(6,072)	276,556

*Audited

The notes form an integral part of these financial statements.

Condensed Unaudited Statement of Cash Flow

			Six months to		Six months to
			30 April 2019		30 April 2018
			£'000		£'000
Cash flows from operating activities
Cash inflow from investment income and bank interest			2,397		1,893
Cash outflow from management expenses			(1,353)		(1,313)
Cash inflow from disposal of investments*			53,670		54,767
Cash outflow from purchase of investments*			(54,256)		(16,315)
Cash outflow from withholding tax			(107)		(130)
Net cash flow from operating activities			351		38,902
Cash flows from financing activities
Proceeds from bank borrowings			5,000		-
Borrowing commitment fee and interest charges			(132)		(168)
Dividend paid			(4,834)		(5,248)
Tender offer and associated costs			-		(33,673)
Share buybacks			(466)		(181)
Net cash flow used in financing activities			(432)		(39,270)
Net decrease in cash and cash equivalents			(81)		(368)
Effect of foreign exchange			(293)		(327)
Cash and cash equivalents at start of the period			1,037		3,414
Cash and cash equivalents at end of the period			663		2,719

* Receipts from the disposal and purchase of investments have been classified as components of cash flow from operating activities because they form part of the Company's operating activities.

The notes form an integral part of these financial statements.

Notes to the Financial Statements

For the six month period ended 30 April 2019

1    Reporting entity

Aberdeen Emerging Markets Investment Company Limited (the "Company") is a closed-ended investment company, registered in Guernsey on 16 September 2009. The Company's registered office is 11 New Street, St Peter Port, Guernsey GY1 2PF. The Company's Ordinary shares have a premium listing on the London Stock Exchange and commenced trading on 10 November 2009. The condensed interim financial statements of the Company are presented for the six months to 30 April 2019.

The Company invests in a portfolio of funds and products which give diversified exposure to developing and emerging market economies with the objective of achieving consistent returns for shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms.

Manager

The investment activities of the Company were managed by Aberdeen Standard Fund Managers Limited ('ASFML') during the six month period to 30 April 2019.

Non-mainstream pooled investments ("NMPIs")

The Company currently conducts its affairs so that the Ordinary shares issued by the Company can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority's rules in relation to NMPIs and intends to continue to do so for the foreseeable future.

2    Basis of preparation

Statement of compliance

The condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules ("DTRs") of the UK's Financial Conduct Authority. They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company as at and for the year ended 31 October 2018. The financial statements of the Company as at and for the year ended 31 October 2018 were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The accounting policies used by the Company are the same as those applied by the Company in its financial statements as at and for the year ended 31 October 2018.

When presentational guidance set out in the Statement of Recommended Practice ('SORP') for Investment Companies issued by the Association of Investment Companies ("AIC") in November 2014 and updated in February 2018 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.

The total column of the Condensed Unaudited Statement of Comprehensive Income is the profit and loss account of the Company. The capital and revenue columns provide supplementary information.

This report will be sent to shareholders and copies will be made available to the public at the Company's registered office. It will also be made available in electronic form on the Company's website: www.aberdeenemergingmarkets.co.uk.

Going concern

The Directors have adopted the going concern basis in preparing these financial statements.

At the AGM held in April 2018, a resolution was approved by shareholders that the Company will continue in existence in its current form until the AGM to be held in 2023.

The Directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of this document. In reaching this conclusion, the Directors have considered the liquidity of the Company's portfolio of investments as well as its cash position, income and expense flows.

As at 30 April 2019, the Company held £0.7 million in cash and £333.6 million in investments. It is estimated that approximately 70% of the investments held at the period end could be realised in one month. The total operating expenses for six month period to 30 April 2019 were £1.5 million, which on an annualised basis represented approximately 1.06% of average net assets during the period. The Company also incurred £0.1 million of finance costs. At the date of approval of this report, based on the aggregate of investments and cash held, the Company has substantial operating expenses cover.

The Company has a £25 million multicurrency revolving loan facility with The Royal Bank of Scotland International Limited ("RBSI"), maturing on 29 March 2020. As at 30 April 2019, £25 million was drawn down from the RBS facility. The liquidity of the Company's portfolio sufficiently supports the Company's ability to repay its borrowings at short notice.

The Directors are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements and, after due consideration, that the Company is able to continue in operation for a period of at least twelve months from the date of approval of these financial statements.

Use of estimates and judgements

The preparation of the condensed interim financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Adoption of new and revised standards

The Company has adopted IFRS 9 Financial Instruments, which became effective on 1 January 2018. IFRS 9 replaces IAS 39, 'Financial Instruments: Recognition and measurement'. It includes revised guidance on the classification and measurement of financial instruments; a new expected credit loss model for calculating impairment of financial assets and new general hedge accounting requirements. It also carries forward the guidance from IAS 39 regarding recognition and derecognition of financial instruments. Adoption of this standard did not have a material impact on the classification of financial assets and liabilities of the Company, because the financial instruments, measured at fair value through profit or loss ("FVTPL") under IAS 39, are managed on a fair value basis in accordance with a documented investment strategy. Accordingly, these financial instruments have been mandatorily measured at FVTPL under IFRS 9.

There has been no restatement in the comparative figures for the period ended 30 April 2018 and 31 October 2018 as a result of adopting IFRS 9.

3    Investments

As the Company's business is investing in financial assets with a view to profiting from their total return in the form of increases in fair value, financial assets are held as fair value through profit or loss on initial recognition. These investments are recognised on the trade date of their acquisition at which the Company becomes a party to the contractual provisions of the instrument. At this time, the best evidence of the fair value of the financial assets is the transaction price. Transaction costs that are directly attributable to the acquisition or issue of the financial assets are charged to the profit or loss of the condensed unaudited Statement of Comprehensive Income as a capital item. Subsequent to initial recognition, investments designated as fair value through profit or loss are measured at fair value with changes in their fair value recognised in the profit or loss of the condensed unaudited Statement of Comprehensive Income and determined by reference to:

(i) investments quoted or dealt on recognised stock exchanges in an active market are valued by reference to their market bid prices;

(ii) investments other than those in i) above which are dealt on a trading facility in an active market are valued by reference to broker bid price quotations, if available, for those investments;

(iii) investments in underlying funds, which are not quoted or dealt on a recognised stock exchange or other trading facility or in an active market, are valued at the net asset values provided by such entities or their administrators. These values may be unaudited or  may themselves be estimates and may not be produced in a timely manner. If such information is not provided, or is insufficiently timely, the Investment Manager uses appropriate valuation techniques to estimate the value of investments. In determining fair value of such investments, the Investment Manager takes into consideration relevant issues, which may include the impact of suspension, redemptions, liquidation proceedings and other significant factors. Any such valuations are assessed and approved by the Directors. The estimates may differ from actual realisable values;

(iv) investments which are in liquidation are valued at the estimate of their remaining realisable value; and

(v) any other investments are valued at Directors' best estimate of fair value.

Investments are derecognised on the trade date of their disposal, which is the point where the Company transfers substantially all the risks and rewards of the ownership of the financial asset. Gains or losses are recognised within profit or loss in the 'Capital' column of the condensed unaudited Statement of Comprehensive Income. The Company uses the weighted average cost method to determine realised gains and losses on disposal of investment.

4    Operating segments

The Board of Directors is responsible for ensuring that the Company's objective and investment strategy is followed. The day-to-day implementation of the investment strategy has been delegated to the Investment Manager but the Board retains responsibility for the overall direction of the Company. The Board reviews the investment decisions of the Investment Manager at regular Board meetings to ensure compliance with the investment strategy and to assess the achievement of the Company's objective. The Investment Manager has been given full authority to make investment decisions on behalf of the Company in accordance with the investment strategy and analyses markets within a framework of quality, value, growth and change. The investment policy employed by the Investment Manager ensures that diversification within investee funds is taken into account when deciding on the size of each investment so the Company's exposure to any one underlying company should never be excessive. The Company's positions are monitored as a whole by the Board in monthly portfolio valuations and at Board meetings. Any significant change to the Company's investment strategy requires shareholder approval.

The Company has a diversified portfolio of investments and no single investment accounted for more than 10% of the Company's net assets at the Company's period end. The Investment Manager aims to identify funds which it considers are likely to deliver consistent capital growth over the longer term. The largest income from an individual investment is a UK investment (Schroder AsiaPacific Fund PLC) which accounted for 21% of the total investment income receivable in the period.

5    Share capital

For the six month period ended 30 April 2019	Authorised	Ordinary shares of 1 p nominal value £'000	Allotted, issued and fully paid	Ordinary shares with voting rights (excluding treasury shares)	Treasury shares
Opening number of shares	Unlimited	546	54,618,507	46,047,096	8,571,411
Purchase of own shares	-	-	-	(81,937)	81,937
Closing number of shares	Unlimited	546	54,618,507	45,965,159	8,653,348
For the six month period ended 30 April 2018	Authorised	Ordinary shares of 1 p nominal value £'000	Allotted, issued and fully paid	Ordinary shares with voting rights (excluding treasury shares)	Treasury shares
Opening number of shares	Unlimited	546	54,618,507	51,196,729	3,421,778
Tender offer	-	-	-	(5,119,633)	5,119,633
Purchase of own shares	-	-	-	(30,000)	30,000
Closing number of shares	Unlimited	546	54,618,507	46,047,096	8,571,411
For the year ended 31 October 2018	Authorised	Ordinary shares of 1 p nominal value £'000	Allotted, issued and fully paid	Ordinary shares with voting rights (excluding treasury shares)	Treasury shares
Opening number of shares	Unlimited	546	54,618,507	51,196,729	3,421,778
Tender offer	-	-	-	(5,119,633)	5,119,633
Purchase of own shares	-	-	-	(30,000)	30,000
Closing number of shares	Unlimited	546	54,618,507	46,047,096	8,571,411

Tender offer

There were no tender offers during the six month period to 30 April 2019 (2018: A total of 5,119,633 Ordinary shares were repurchased by the Company on 17 April 2018 under the terms of the Tender Offer and placed in treasury. The Tender Price of 652.6487p per Ordinary share reflected a discount of 3.5% to the prevailing NAV per Ordinary share. Payments with an aggregate value of £33,413,000 were made to shareholders in respect of validly tendered shares during the week commencing 23 April 2018).

Purchases of own Ordinary shares

There were 81,937 Ordinary shares re-purchased during the six month period to 30 April 2019 (during the six month period to 30 April 2018 and for the full year ended 31 October 2018: 30,000 Ordinary shares were re-purchased) at an aggregate cost to the Company of £466,000 (for the half-year ended 30 April 2018 and for the full year ended 31 October 2018: £181,000), all of which are held in treasury.

Share capital account

The aggregate balance (including share premium) standing to the credit of the share capital account at 30 April 2019 was £149,616,000 (30 April 2018: £150,076,000 and 31 October 2018: £150,082,000).

6    Earnings/ (losses) per Ordinary share

Earnings per Ordinary share is based on the profit for the period of £37,693,000 (30 April 2018: loss of £2,239,000) attributable to the weighted average of 46,036,031 Ordinary shares in issue in the six months to 30 April 2019 (30 April 2018: 50,798,241).

7    Net asset value per Ordinary share

Net asset value per Ordinary share is based on net assets of £308,949,000 (30 April 2018: £320,130,000 and 31 October 2018: £276,556,000) divided by 45,965,159 (30 April 2018: 46,047,096 and 31 October 2018: £46,047,096) Ordinary shares in issue (excluding treasury shares) at the period end.

The table below is a reconciliation between the NAV per Ordinary share announced on the London Stock Exchange and the NAV per Ordinary share disclosed in these financial statements.

	As at 30 April 2019		As at 30 April 2018		As at 31 October 2018
	£'000	Pence per Ordinary share	£'000	Pence per Ordinary share	£'000	Pence per Ordinary share
NAV as published on 1 May 2019; 1 May 2018 and 1 November 2018 respectively	308,652	671.49	319,676	694.24	276,494	600.46
Revaluation adjustments - delayed prices	297	0.65	454	0.98	62	0.13
NAV per share as disclosed in these financial statements	308,949	672.14	320,130	695.22	276,556	600.59

8   Related party disclosures

Manager

Management fees payable are disclosed in profit or loss in the Condensed Unaudited Statement of Comprehensive Income.

As at 30 April 2019, management fees of £391,000 (30 April 2018: £201,000 and 31 October 2018: £199,000) were accrued in the Condensed Unaudited Statement of Financial Position. Total management fees for the period were £1,111,000 (30 April 2018: £1,368,000 and 31 October 2018: £2,515,000).

Investments held by the Company which are managed by the Standard Life Aberdeen Group
As at 30 April 2019, the Company held the following investments managed by the Standard Life Aberdeen Group;
	As at	As at	As at
	30 April 2019	30 April 2018	31 October 2018
	£'000	£'000	£'000
Aberdeen Standard SICAV I - China A Share Equity Fund - USD Class Z	10,123	-	-
Edinburgh Dragon Trust PLC*	4,119	11,682	6,766
Aberdeen New India Investment Trust PLC*	3,593	-	-
Aberdeen Standard Asia Focus PLC*	1,394	2,742	1,261
Aberdeen Asian Income Fund Limited*	1,314	-	-
Aberdeen Latin America Equity Fund*	-	4,258	-
Total	20,543	18,682	8,027

*Monthly management fees are reduced by the proportion of the Company's net assets invested in above securities at the end of each month.

Directors

Total fees for the Directors in the period ended 30 April 2019 were £64,680 (2018: £68,000). There were no outstanding fees due to the Directors at the period end (2018: nil).

As at 30 April 2019 and at the date of this report the Directors held the following Ordinary shares in the Company. 

	Ordinary shares At 30 April 2019 and at the date of this report	Ordinary shares At 31 October 2018
M Hadsley-Chaplin	30,000	25,000
W Collins	15,000	12,000
H Green	1,800	-
E de Rochechouart (appointed 16 April 2019)	-	-
J Hawkins	10,000	10,000

9    Dividend

The dividends declared in respect of the year ending 31 October 2019 are detailed below:

Dividend paid during the year ending 31 October 2019
Dividend type (in respect of the year) - Pay date	Pence per	Capital	Revenue
	Ordinary	reserve	reserve
	share	£'000	£'000
Fourth interim (2018) - paid 21 December 2018	5.25	1,437	980
First interim (2019) - paid 29 March 2019	5.25	2,417	-
Total dividend	10.50	3,854	980
On 16 April 2019, the Board declared a second interim dividend in respect of the year ending 31 October 2019 of 5.25p per Ordinary share, payable on 28 June 2019 to those shareholders on the register on 31 May 2019. The Board has also declared a third interim dividend in respect of the year of 5.25p per Ordinary share payable on 27 September 2019 to those shareholders on the register on 30 August 2019.
Dividend paid during the year ended 31 October 2018
Dividend type (in respect of the year) - Pay date	Pence per	Capital	Revenue
	Ordinary	reserve	reserve
	share	£'000	£'000
Second interim (2017) - paid 29 December 2017	5.00	2,560	-
First interim (2018) - paid 29 March 2018	5.25	2,689	-
Second interim (2018) - paid 29 June 2018	5.25	2,417	-
Third interim (2018) - paid 28 September 2018	5.25	2,417	-
Total dividend	20.75	10,083	-

10  Bank loan and finance costs

On 29 March 2019, the Company renewed a £25,000,000 multicurrency revolving loan facility with RBSI, with a termination date of 29 March 2020. At the period end, an amount of £25,000,000 was drawn down at an all-in monthly rate of 1.28088%.

	As at 30 April 2019	As at 30 April 2018	As at 31 October  2018
	£'000	£'000	£'000
Interest payable	126	127	273
Facility and arrangement fees and other charges	5	29	39
Total finance costs	131	156	312

At 30 April 2019, interest payable of £27,000 (30 April 2018: £22,000 and 31 October 2018: £28,000) was accrued in the Condensed Unaudited Statement of Financial Position.

Restrictions imposed by RBSI in connection with the credit facility include the following covenants:

• Consolidated net tangible assets are not less than £175 million.

• Consolidated gross borrowings expressed as a percentage of the investment portfolio value shall not exceed 15%.

• Consolidated gross borrowings expressed as a percentage of the adjusted investment portfolio value shall not exceed 22.5%.

• The Borrower's portfolio must contain a minimum of 20 eligible Investments of which a minimum of 8 shall be of a closed-ended structure.

The Company does not have any externally imposed capital requirements other than disclosed above.

11  Financial instruments

IFRS 13 requires the Company to classify its investments in a fair value hierarchy that reflects the significance of the inputs used in making the measurements. IFRS 13 establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy under IFRS 13 are as follows:

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 asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices);

Level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant assumptions based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes 'observable' requires significant judgement by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.

The classification of the Company's investments held at fair value as at 30 April 2019 is detailed in the table below:

		30 April 2019 £'000		30 April 2018 £'000	31 October 2018 £'000
Investments held at fair value through profit and loss
Level 1		262,465		268,666	229,608
Level 2		69,937		73,164	64,994
Level 3		1,187		1,138	999
Total		333,589		342,968	295,601

The Company recognises transfers between levels of fair value hierarchy as at date of the period end which the change occurred.

There were no investments that were transferred between levels during the period (2018: nil).

Level 1 classification basis

Investments, whose values are based on quoted market prices in active markets, and therefore classified within level 1, include listed equities in active markets. The Company does not adjust the quoted price for these instruments.

Level 2 classification basis

Investments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2. These include monthly priced investment funds. The underlying net asset values of the open ended funds included under level 2 are prepared using industry accepted standards and the funds have a history of accepting and redeeming funds on a regular basis at net asset value. The net asset values of regularly traded open ended funds are considered to be reasonable estimates of the fair values of those investments and such investments are therefore classified within level 2 if they do not meet the criteria for inclusion in level 1.

Level 3 classification basis

Investments classified within level 3 have significant unobservable inputs, as they trade infrequently. The level 3 figure consists of a private equity investment held in a side pocket of Tarpon All Equities Cayman (Series B) L.P. ("Tarpon").  This holding is stated at fair value which is estimated in good faith by the Directors following consultation with the Manager with a view to establishing the probable realisable value of this investment. The fair value of the Tarpon and its side pocket has been based on an unadjusted net asset value provided by the administrator of that fund.

The movement on the level 3 classified investments is shown below:

		Six months to 30 April 2019 £'000		Six months to 30 April 2018 £'000	Year to 31 October 2018 £'000
Opening balance		999		1,133	1,133
Valuation adjustments		188		5	(134)
Closing balance		1,187		1,138	999
Total gains and losses for the period included in profit or loss
relating to assets held at the end of the period		188		5	(134)

12  Financial instruments - risk profile

The principal risks relating to financial instruments held by the Company remain the same as at the Company's last financial year end.

13  Post balance sheet events

There are no post balance sheet events other than as disclosed in this Half-Yearly Financial Report.

Alternative Performance Measures ("APMs")
Discount
The amount, expressed as a percentage, by which the Ordinary share price is less than the NAV per Ordinary share.
				As at 30 April 2019
NAV per Ordinary share (in pence)		a		672.14
Ordinary share price (in pence)		b		585.00
Discount		(b÷a)-1		13.0%
Gearing
A way to enhance income and capital returns, but which can also magnify losses. The revolving loan facility with RBSI is a common method of gearing.
				As at 30 April 2019
Total assets less cash/cash equivalents (£'000)		a		333,845
Net assets (£'000)		b		308,949
Gearing (net)		(a÷b)-1		8.1%
Leverage
Under the Alternative Investment Fund Managers Directive ("AIFMD"), leverage is any method by which the exposure of an Alternative Investment Fund ("AIF") is increased through borrowing of cash or securities or leverage embedded in derivative positions. Under AIFMD, leverage is broadly similar to gearing, but is expressed as a ratio between the assets (excluding borrowings) and the net assets (after taking account of borrowing). Under the gross method, exposure represents the sum of the Company's positions after deduction of cash balances, without taking account of any hedging or netting arrangements. Under the commitment method, exposure is calculated without the deduction of cash balances and after certain hedging and netting positions are offset against each other. Further details on the Company's leverage is provided in the Annual Report and Accounts.
Total return
A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of dividends paid out by the Company into its Ordinary shares on the ex-dividend date.
Period ended 30 April 2019			NAV per Ordinary share	Ordinary share price
Opening at 1 November 2018 (in pence)	a		600.59	515.00
Closing at 30 April 2019 (in pence)	b		672.14	585.00
Price movement  (b ÷ a) - 1	c		11.9%	13.6%
Dividend reinvestment	d		1.8%	2.2%
Total return	(c+d)		13.7%	15.8%

Contact Addresses

Directors Mark Hadsley-Chaplin (Chairman) William Collins Helen Green John Hawkins Eleonore de Rochechouart (Appointed 16 April 2019) Company Secretary and Administrator Vistra Fund Services (Guernsey) Limited 11 New Street St Peter Port Guernsey GY1 2PF Financial Advisor and Stockbroker Shore Capital Markets Limited (formerly Stockdale Securities Limited) 100 Wood Street London EC2V 7AN Independent Auditor KPMG Channel Islands Limited Glategny Court Glategny Esplanade St Peter Port Guernsey GY1 1WR Registrars Link Asset Services Longue Hougue House St Sampson Guernsey GY2 4JN Registered Office 11 New Street St Peter Port Guernsey GY1 2PF United States Internal Revenue Service FATCA Registration Number ("GIIN") WLL8YJ.99999.SL.831 Legal Entity Identifier ("LEI") 213800RIA1NX8DP4P938 Company Registration Number Incorporated in Guernsey Number 50900

Alternative Investment Fund Manager Aberdeen Standard Fund Managers Limited Bow Bells House 1 Bread Street London EC4M 9HH Investment Manager Aberdeen Asset Managers Limited Bow Bells House 1 Bread Street London EC4M 9HH UK Administration Agent PraxisIFM Fund Services (UK) Limited 3rd Floor, Mermaid House 2 Puddle Dock London EC4V 3DB Advisers as to Guernsey law Mourant Ozannes 1 Le Marchant Street St Peter Port Guernsey GY1 4HP Depository Services and Custodian Northern Trust (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3DA Aberdeen Standard Investments Customer Services Department, Children's Plan, Share Plan and ISA Enquiries Aberdeen Standard Investment Trusts PO Box 11020 Chelmsford Essex CM99 2DB Freephone: 0808 500 0040 (open Monday to Friday, 9.00 a.m. - 5.00 p.m., excluding public holidays in England and Wales) Email: [e-mail] Website aberdeenemergingmarkets.co.uk

Enquiries:

Aberdeen Standard Fund Managers Limited (Alternative Investment Fund Manager to Aberdeen Emerging Markets Investment Company Limited)

Colin Edge / William Hemmings Tel: [phone]

Stockdale Securities Limited (Financial adviser and stockbroker)

Robert Finlay    Tel: [phone]

Vistra Fund Services (Guernsey) Limited (Company Secretary)

Patrick Farncombe        Tel: [phone]

PraxisIFM Fund Services (UK) Limited (UK Administration Agent)

Anthony Lee      Tel: [phone]

Ordinary Shares - Listing Category: Premium - Equity Closed-ended Investment Funds

27 June 2019

END

 

END

 

 

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