Half-year Report

RNS Number : 8939C

Aberdeen Emerging Markets Inv Co Ld

24 June 2021

 

Aberdeen Emerging Markets Investment Company Limited

LEI: 213800RIA1NX8DP4P938

Looking for the best-of-breed emerging market funds

Half-Yearly Report

For the six months ended 30 April 2021

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.

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.

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To find out more about Aberdeen Emerging Markets Investment Company Limited,
please visit: aberdeenemergingmarkets.co.uk

Performance Highlights

Performance Highlights for the six months ended 30 April 2021 Net asset value ("NAV") per Ordinary share total return1,4 NAV per Ordinary share2 +21.5% 836.6p 31 October 2020 +8.9% 31 October 2020 698.3p Ordinary share price total return1,4 Ordinary share price - mid market +20.0% 714.0p 31 October 2020 +12.2% 31 October 2020 605.0p MSCI Emerging Markets Net Total Return Index in sterling terms Net Assets +15.2% £384.5million 31 October 2020 +8.2% 31 October 2020 £321.0 million  Net gearing3,4 Revenue return per Ordinary share 0.3% (0.01p) 31 October 2020 1.6% 31 October 2020 1.60p
1 Performance figures stated above include reinvestment of dividends on the ex-date. 2 See note 8 in the Selected Explanatory 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 in the APM's section of this report
Financial Calendar

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. Financial Calendar Payment dates of quarterly dividends 24 September 2021 24 December 2021 25 March 2022 24 June 2022 Financial year end 31 October 2021 Expected announcement of results for year ended 31 October 2021 February 2022 Annual General Meeting April 2022

Chairman's Statement

Overview The Company generated strong absolute and relative returns for the six month period ended 30 April 2021. The net asset value ("NAV") total return was 21.5% and the share price total return was 20.0%. These returns compare favourably with a return from the benchmark index, the MSCI Emerging Markets Net Total Return Index (in Sterling terms), of 15.2%. The discount at which the Company's shares trade relative to the NAV widened slightly during the period, ending at 14.6% compared to 13.4% at the start of the period. Emerging markets performed strongly during the period. This began with the positive economic implications of the approval of the first Covid-19 vaccines in November, and resulted in strong performance in particular from those sectors that had been impacted most during the preceding months. During the latter part of the period, markets gave up some of their gains as concerns grew about the outlook for inflation but the benchmark return for the period of more than 15% was a strong one and it was pleasing that the Company recorded a period of good relative outperformance, building on the performance record of the previous two financial years.  Within the portfolio, fund selection was the largest contributor to the NAV outperformance for the period with the Company's investments in China and South Korea adding the most relative value. Asset allocation was also a positive contributor, with the Company benefitting from its underweight exposure to China and its overweight exposure to South Korea and Russia. There was a small positive contribution from the changes in the discounts to NAV at which the Company's closed end fund holdings traded. A more detailed explanation of the performance for the period and portfolio activity is provided in the Investment Manager's Report. Dividends A first interim dividend of 5.75p per share was paid on 26 March 2021 and a second interim dividend of 5.75p per share will be paid on 25 June 2021. The Board now declares a third interim dividend in respect of the year of 5.75p per share, payable on 24 September 2021 to those shareholders on the register on 27 August 2021. In the absence of unforeseen circumstances, the Board anticipates declaring one further interim dividend in respect of the current financial year, of at least 5.75p per share. It is therefore anticipated that the total dividend for the year will be no less than 23.0p per share representing a yield of 3% based on the share price of 723.0p as at 18 June 2021. 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 Company announced the renewal of its £25 million multi-currency revolving loan facility for a further year to 25 March 2022. The Board continues to believe 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. In light of the Board's and Investment Manager's cautious view of markets, the facility was only partially drawn during the period and is currently undrawn. Gearing net of cash as at 30 April 2021 was 0.3%, compared to 1.6% at the start of the period. The Company retains the ability to adopt a more aggressive stance when markets are better aligned with fundamentals. Shares in Public Hands The Board has previously announced that the number of Ordinary shares which are deemed by the Listing Rules to be held in public hands is below the minimum 25% threshold. The Listing Rules provide that shares are not considered to be held in public hands ("free float") if they are held by persons (or persons in the same group or persons acting in concert) who have an interest in 5% or more of a listed company's share capital, as well as shares held by directors of a listed company. In September 2019, the Company announced that the FCA had agreed to modify the relevant Listing Rule for the period up until 21 August 2020 to permit a reduced level of shares in public hands, even though the level was below 25%. Significant efforts have subsequently been made by the Company and its advisers to increase the shares in public hands through additional marketing efforts, but progress has been hindered by the emergence of the Covid-19 pandemic and lockdown measures that have been adopted. Accordingly, as previously announced, the Company has sought and received the agreement of the FCA to extend the period of the Listing Rule modification to 21 August 2021. During this time the Company will continue to monitor its share register, which currently shows a free float of approximately 16%, keep the FCA informed of any relevant developments and work towards restoring the number of shares in public hands. Outlook This past interim period spans good performance in emerging markets generally, and commendable relative performance by the investment management team led very ably by Andy Lister and Bernard Moody. Yet it also very much highlights some frustrations which I am sure will be recognised by most shareholders. Despite the favourable winds of investment performance, the share price has continued to trade at a discount to asset value which we regard as too wide whilst, equally, our share register has remained highly concentrated with little sign of the desired momentum of new investor interest. We see two related factors at work making addressing these issues less straightforward. Firstly, as regards the discount, a board would normally deploy its power of 'buying back' shares in the market in order to narrow that discount. Indeed, discount management is a stated objective of your Board and helps to demonstrate confidence in the long term future of the mandate. Your Board has deployed this power in the past, but it will not have escaped your attention that at 16% we are presently well below the Financial Conduct Authority's free float requirement of 25%. The FCA has recognised that, particularly under ongoing Covid restrictions, our ability to improve the level of free float is somewhat limited but the effect remains that the Board's hands are tied when it comes to undertaking a determined buy back campaign. The second factor, insufficient interest from new investors to help reduce our share register concentration, appears to have been adversely impacted by the current aversion to fund of fund structures, particularly amongst wealth managers, despite our performance.  We had been waiting for a decisive period of strong absolute and relative performance in the belief that this could result in a significant narrowing of the discount and a flow of new investor interest, alleviating the free float issue. Clearly, we have seen such performance but this has not led to a significant narrowing in the discount.  We are, therefore, actively considering changes we can make that would address both the free float issue and the discount and we shall make any appropriate announcements in due course. Mark Hadsley-Chaplin Chairman 23 June 2021

Investment Manager's Report

Market environment

Emerging markets began the period strongly as the prospect of vaccine roll-outs led investors to focus on the potential for a rebound in global economic activity. This, in turn, resulted in significant style rotation, with those markets, sectors and stocks which had suffered the greatest economic impact in the early stages of the pandemic rallying strongly. The "risk-on" environment saw the US dollar weaken and a rally in the prices of energy and most industrial commodities as well as emerging market currencies. By late February, the emerging markets index was up by almost 23%, but subsequently gave up some of those gains as increasing concerns about the outlook for inflation pushed US bond yields sharply higher, negatively impacting sentiment towards emerging market assets. Increased regulatory scrutiny of technology related companies in China also contributed to the pullback, with many such companies falling 20-30% from their February highs. For the overall period the emerging markets index rose by 15.2%.

The regional index for Emerging Asia gained 12.8%, lagging the performance of broader emerging markets. Over the period, there was a divergence in the performance of the three largest markets in the region. Taiwan and South Korea continued to perform strongly, gaining 36.0% and 34.7% respectively, benefitting from continued investor appetite for technology stocks. In contrast, China, the largest market in the region, had a poor period, falling by 0.1% after succumbing to profit taking post February's Lunar New Year holidays as investor sentiment was hampered by expectations of monetary policy normalisation, concerns about the risk of a forced delisting of Chinese stocks from US markets and greater domestic regulatory focus on internet and technology companies. Elsewhere in the region, Indian equities gained 16.8% despite a worsening Covid-19 crisis as sentiment was supported by a growth-focused budget and strong inflows from foreign investors through most of the period.

Eastern Europe, Middle East and Africa was the best performing region, gaining 25.7%. The small central European markets of the Czech Republic, Hungary and Poland performed well, up 42.3%, 34.2% and 31.5% respectively, buoyed by the vaccine driven cyclical recovery at the start of the period and moves towards an easing of Covid-19 restrictions later in the period. The rally in energy prices (Brent crude was up 68.0% in sterling terms over the period) supported gains in Russia (30.6%) and Saudi Arabia (26.5%). South African equities benefitted from buoyant commodity prices and a corresponding recovery in the rand, taking the market 27.3% higher. Turkey was amongst the weaker markets in the region yet still posted a gain of 12.6% despite a sell-off late in the period after President Erdogan replaced the head of the central bank, dashing perceptions that political governance might be improving in the country.

Latin America had a strong period with the regional index rising 25.4%. The rally in energy and commodity prices was a supportive factor and Brazil, the dominant market in the region, rose by 26.2% despite the government's perceived poor handling of the Covid-19 crisis and the unexpected removal of the Chief Executive of Petrobras, a state controlled oil company and the second largest stock in the local index. Elsewhere in the region, stock markets in Mexico and Chile gained 28.5% and 27.8% respectively.

Performance

The Company's net asset value ("NAV") per share total return was 21.5%, comparing favourably with the 15.2% return from the Benchmark (MSCI Emerging Markets Net Total Return Index). The ordinary share price total return was 20.0%, as the discount to NAV at which the Company's ordinary shares trade widened to 14.6% from 13.4% at the start of the period.

Performance attribution follows in the table below and shows that Fund Selection was the largest contributor to the Company's NAV outperformance. In particular, the Company's investments in China and South Korea added significant value (Aberdeen Standard China A-Share Equity Fund, Fidelity China Special Situations, Neuberger Berman China Equity Fund and Weiss Korea Opportunity Fund). Another meaningful contributor to performance was Russian holding Baring Vostok Investments Limited which had an excellent period as several holdings completed successful initial public offerings. Amongst the detractors was the South African listed Naspers Limited, which suffered from its exposure to Chinese internet giant, Tencent. In addition, the Company's fixed interest investments (Aberdeen Standard Frontier Markets Bond Fund and Neuberger Berman China Bond Fund) detracted as they failed to keep pace with comparable equity markets.

Asset Allocation was also a positive contributor to relative performance. The underweight positioning in China was the most significant positive although being overweight South Korea and Russia also added value.

In addition, changes in the discounts to net asset value at which the Company's closed end fund holdings trade were a small positive. The most notable contributor was Schroder Oriental Income Fund, where the discount narrowed from 6.4% to 1.3%. The Company also benefitted from several exits or partial sales of funds trading at narrower than average discount levels (these are discussed in the "Portfolio positioning" section below).

NAV performance attribution for the six months ended 30 April 2021
Fund Selection	4.9%
Asia	4.5%
EMEA	0.6%
Latin America	(0.1%)
Global Emerging Markets	(0.1%)
Asset Allocation	1.6%
Asia	1.2%
EMEA	0.5%
Latin America	(0.3%)
Cash/Gearing (direct and underlying)	0.2
Closed End Fund Discounts	0.2%
Fees and Expenses	(0.4%)
NAV excess return*	6.3%

* The above analysis has been prepared on a total return basis.

Portfolio Positioning

At the beginning of the period, amidst signs of improving sentiment towards the asset class, we fully drew down the Company's £25 million revolving credit facility. This cash was quickly invested across a number of holdings. A position was initiated in Naspers Limited, a deeply discounted South African conglomerate which derives the majority of its value from a holding in Tencent, a dominant Chinese internet company. We also added to best-of-breed Russian holding Halcyon Ethical Russian Growth Fund (formally known as Verno Capital Growth Fund), while immediate market exposure was taken through Latin American and broad global emerging market exchange traded funds.

In December, we changed the composition of the Company's China related investments. The position in Neuberger Berman China Equity Fund was trimmed, having grown to account for over 10% of net assets. Part of the proceeds of that redemption was reinvested in Aberdeen Standard China A-Share Equity Fund.

We initiated a holding in Ashoka India Equity Investment Trust in early 2021. In addition to benefitting from an exceptionally strong and locally based research team, Ashoka has a unique structure with no annual management fee, a performance fee paid for index outperformance over three year periods and an annual exit opportunity at net asset value less costs. The latter has served to keep the discount at which shares trade narrow since launch. We purchased shares through the company's issuance programme, an unusual step for us, but one we feel is justified given the downside protection that comes from the annual exit and unique fee structure.

Closed end fund discounts presented several trading opportunities. At times during the period, JP Morgan Emerging Markets Investment Trust, Fondul Proprietatea and Fidelity China Special Situations all traded at much narrower discount levels than have prevailed in recent years. We used this strength to exit the first two investments and made a meaningful reduction in the latter.

We continue to hold a favourable view on smaller emerging and frontier markets and added to BlackRock Frontiers Investment Trust early in the period. The trust offered a full exit opportunity in February in which we did not participate as we considered the underlying portfolio to be fundamentally attractive and expect the trust to continue to trade around parity over the long run supported by a dividend yield in excess of 4%.

We did, however, participate in several other corporate actions during the period. Most notably, we exited the Company's position in Gulf Investment Fund through a realisation opportunity offered by the company. While we rate the manager highly, the vehicle suffered from structural issues that a shrinkage in assets would likely exacerbate (small size, concentrated shareholder register, illiquidity, wide bid-offer spread). The proceeds were received in late January and partly reinvested back into the region through QIC GCC Equity Fund. We also participated in a tender offer from the Romanian focused Fondul Proprietatea in December, exiting 12.1% of the Company's position at a premium to the prevailing markets price (the remainder of the position was sold in January and February as the discount to NAV narrowed to single digits). Weiss Korea Opportunity Fund published details of its two-yearly exit opportunity in March. The fund's recent exceptional performance had caused it to become the single largest position in the Company's portfolio. We opted to take advantage of this opportunity to reduce the size of the holding by half. We expect to receive the proceeds in several instalments in the coming months. 

Towards the end of the period, we became concerned that markets had run ahead of underlying fundamentals and we began to adopt a slightly more cautious stance, exiting several positions in exchange traded funds and utilising the proceeds to repay £15.0 million of the Company's borrowings on its revolving credit facility. This caution proved helpful at the margin in insulating the portfolio from the full extent of the market correction. We also halved the position in the Aberdeen Standard Frontier Markets Bond Fund, in the final week of the period after a period of strong returns compared with mainstream emerging market hard currency sovereign debt.

The Company's geographic allocation is shown further below. Most significantly, the Company's exposure to China fell from 38.2% to 30.7%, largely as a consequence of that market's underperformance but also reflecting the reductions in Neuberger Berman China Equity Fund and Fidelity China Special Situations. China remains a significant underweight position relative to the Company's Benchmark. South Korea's allocation increased to 16.5%, a modest overweight, reflecting both the market's return and strong performance from the Company's investments there. India's weight at the end of the period was 7.1%, having increased with the introduction of Ashoka India Investment Trust yet still an underweight allocation relative to the Benchmark. In the Europe Middle East and Africa region, Romania's allocation fell to just 0.5% post the exit from Fondul Proprietatea while Russia and South Africa increased in size to 6.4% and 4.0% respectively, through a combination of performance and portfolio activity.

The composition of the portfolio by vehicle type is shown below. The most significant change over the period was the reduction in exposure to closed end funds as a consequence of the activity outlined above. The "Direct equity holdings" category reflects the introduction of Naspers Limited to the portfolio.

	30 April 2021	31 October 2020
Open ended investment funds	49.0%	51.4%
Closed ended investment funds	45.2%	49.0%
Direct equity holdings	3.4%	n/a
Market access products	2.6 %	0.8%
Cash and other net assets	-0.2%	-1.2%

The allocation to funds managed by Aberdeen Standard Investments was 16.4% at the end of the period. The two largest such positions were Aberdeen Standard China-A Share Equity fund (5.9%) and Aberdeen Asian Income Fund Limited (4.1%). The use of in-house managed funds, on which there is no double charging of fees, is a valuable tool in making the Company as cost-effective as possible in an environment where this is increasingly a concern for investors.

Outlook

The defining feature of the period was the return differential between Chinese equities and the rest of emerging markets, with the former underperforming the latter by close to 30%. Given China's dominant weight in emerging market indices (37.5% of the MSCI Emerging Markets Index at the end of the period), this had the effect of distorting the return from the overall asset class and much of the narrative around it. In particular, much was written towards the end of the period on how emerging markets had "rolled over" in the face of US exceptionalism, the suggestion being that with the US growing so rapidly (largely due to its seemingly unlimited scope to stimulate), emerging markets would be crowded out of the global recovery. Sentiment waned accordingly. In reality, the vast majority of emerging countries (including those still facing Covid-19 related challenges) enjoyed consistently stronger currencies and equity markets through the period, with the correction since the February peak being explained almost entirely by weaker Chinese equities, which in turn was led by declines in technology and internet related stocks. These companies endured a perfect storm, with the joint spectres of higher inflation and interest rates internationally undermining their valuations (and those of high growth companies globally), whilst domestically the Chinese authorities stepped in with fines for monopolistic practices and curbs on the creep from consumer services to financial services.

The obvious question today is whether this trend continues or reverses. Many of the strongest performing assets in emerging markets of late have benefitted from strong commodity and energy prices and tentative signs of returning appetite for traditional value sectors such as financials. This is a trend we envisage continuing given still attractive valuations and a sharp recovery in earnings. At the same time, we believe the Chinese equity market remains under-owned internationally, and thus view this setback as a potential buying opportunity. The two are not mutually exclusive, and we reflect this in the Company's portfolio through diversified exposure to value and growth opportunities, large and small capitalisation companies (with a strong bias towards the latter) and many markets besides China.

Identifying talented managers with strong investment propositions is a key component of our approach and the Company's portfolio represents a focused selection of well-structured funds managed by talented stock pickers in those markets that our top-down analysis indicates to be attractive. We believe the current market environment presents an abundance of opportunities for active managers. This has been borne out in the Company's recent outperformance, which has resulted from our management of the portfolio as well as the active management of our selected managers.

Aberdeen Asset Managers Limited 23 June 2021   Investments
As at 30 April 2021
Company		Country of establishment		Value (£'000)			Percentage of net assets (%)
Weiss Korea Opportunity Fund Limited		Guernsey		34,420			9.0
Neuberger Berman - China Equity Fund		Ireland		30,631			8.0
Schroder AsiaPacific Fund PLC		United Kingdom		23,998			6.2
Aberdeen Standard SICAV I - China A Share Equity Fund		Luxembourg		22,520			5.9
Schroder International Selection Taiwanese Equity Fund		Luxembourg		21,616			5.6
Korea Value Strategy Fund Ltd		British Virgin Islands		18,857			4.9
Fidelity China Special Situations PLC		United Kingdom		17,058			4.4
Aberdeen Asian Income Fund Limited		United Kingdom		15,678			4.1
Neuberger Berman - China Bond Fund		Ireland		15,045			3.9
Halcyon Ethical Russian Growth Fund Limited		Cayman Islands		14,899			3.9
Top ten investments				214,722			55.9
Schroder Oriental Income Fund Limited		Guernsey		14,875			3.9
Genesis Emerging Markets Fund Limited		Guernsey		13,865			3.6
Diversified Growth Company QIC GCC Equity Fund		Luxembourg		13,473			3.5
Naspers Limited		South Africa		13,196			3.4
Lazard Emerging World Fund		Ireland		11,676			3.0
Avaron Emerging Europe Fund		Estonia		11,107			2.9
Aberdeen New India Investment Trust PLC		United Kingdom		10,530			2.7
Ton Poh Fund		Cayman Islands		10,138			2.6
Vanguard FTSE Emerging Markets ETF		United States		9,949			2.6
BlackRock Latin American Investment Trust PLC		United Kingdom		9,468			2.5
Next ten investments				118,277			30.7
Top twenty investments				332,999			86.6
Ashoka India Equity Investment Trust PLC		United Kingdom		8,520			2.2
Baring Vostok Investments PCC Limited		Guernsey		8,410			2.2
Aberdeen Standard SICAV I - Frontier Markets Bond Fund		Luxembourg		7,980			2.1
Laurium Limpopo Africa Fund		Cayman Islands		7,909			2.1
BlackRock Frontier Investment Trust PLC		United Kingdom		7,807			2.0
Asia Dragon Trust PLC		United Kingdom		6,174			1.6
JPMorgan Global Emerging Markets Income Trust PLC		United Kingdom		3,189			0.8
Komodo Fund		Cayman Islands		1,278			0.3
Tarpon All Equities Cayman		Cayman Islands		1,089			0.3
Total investments				385,355			100.2
Cash plus other net assets and liabilities				(832)			(0.2)
Net assets				384,523			100.0

Asset Allocation

As at 30 April 2021 Country split Company (%)   Benchmark (%) Asia 72.1 79.9 China 30.7 37.5 India 7.1 9.4 Indonesia 1.0 1.2 South Korea 16.5 13.4 Malaysia 0.2 1.4 Pakistan 0.1 - Philippines 0.3 0.6 Taiwan 9.2 14.6 Thailand 3.2 1.8 Singapore 1.6 - Vietnam 0.4 - Other 1.8 - EMEA 21.5 12.9 Czech Republic 0.2 0.1 Egypt 1.0 0.1 Greece 0.4 0.1 Hungary 0.6 0.2 Kuwait 0.2 0.5 Poland 0.7 0.7 Qatar 0.6 0.7 Romania 0.5 - Russia 6.4 3.0 Saudi Arabia 2.1 2.9 South Africa 4.0 3.7 Turkey 0.4 0.3 UAE 0.7 0.6 Other 3.7 -
Latin America	4.1	7.2
Argentina	0.2	0.1
Brazil	2.0	4.6
Chile	0.4	0.5
Colombia	0.1	0.1
Mexico	0.9	1.7
Peru	0.1	0.2
Other	0.4	-
Non-specified	1.5	-
Cash in underlying investments	1.0	-
Cash plus other net assets	(0.2)	-
Total	100.0	100.0

Interim Management Report

The Chairman's Statement and the Investment Manager's Report above 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 2021 and the impact of those events on the condensed unaudited financial statements included in this Half-Yearly Financial Report. Details of investments held at the period end are and the asset allocation at the period end is shown above. Principal Risks, Emerging 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), (v) emerging risks. 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 2020 (the "Annual Report''). The principal risks, emerging 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. The Directors have also reviewed and assessed recent emerging risks including the on-going impact of a global pandemic (COVID-19) and increasing focus of ethical, social and governance measures in assessing investment opportunities. Given the level of market volatility experienced due to the impact of the COVID-19 pandemic, the Investment Manager has performed stress tests on the Company's portfolio of investments under current conditions and the Directors remain comfortable with the liquidity of the portfolio. 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 2021 are detailed in note 10 of the Selected Explanatory Notes to the Unaudited Financial Statements. Going Concern See note 2 further below for details on going concern. Signed on behalf of the Board of Directors on 23 June 2021 Helen Green Director

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 23 June 2021 Helen Green Director Independent Review Report

Conclusion 

We have been engaged by Aberdeen Emerging Markets Investment Company (the "Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 April 2021 of the Company which comprises the Condensed Unaudited Statement of Financial Position as at 30 April 2021, the Condensed Unaudited Statement of Comprehensive Income, the Condensed Unaudited Statement of Changes in Equity, the Condensed Unaudited Statement of Cash Flow for the six months then ended 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 2021 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. 

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. 

Andrew Salisbury

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants, Guernsey  

23 June 2021

Condensed Unaudited Statement of Comprehensive Income

		Six month period ended 30 April 2021			Six month period ended 30 April 2020
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments		-	68,879	68,879	-	(34,295)	(34,295)
Losses on currency movements		-	(151)	(151)	-	(72)	(72)
Net investment gains/(losses)		-	68,728	68,728	-	(34,367)	(34,367)
Investment income		2,033	-	2,033	1,998	-	1,998
		2,033	68,728	70,761	1,998	(34,367)	(32,369)
Investment management fees	10	(1,346)	-	(1,346)	(1,096)	-	(1,096)
Other expenses		(454)	-	(454)	(456)	-	(456)
Operating profit/(loss) before finance costs and taxation		233	68,728	68,961	446	(34,367)	(33,921)
Finance costs	5	(112)	-	(112)	(151)	-	(151)
Operating profit/(loss) before taxation		121	68,728	68,849	295	(34,367)	(34,072)
Withholding tax expense		(125)	-	(125)	(119)	-	(119)
Total profit/(loss) and comprehensive income for the period		(4)	68,728	68,724	176	(34,367)	(34,191)
Earnings/(losses) per Ordinary share	6	(0.01p)	149.52p	149.51p	0.38p	(74.77p)	(74.39p)

The Total column of this statement represents the Company's Statement of Comprehensive Income, prepared under IAS 34 Interim Financial Reporting. The Revenue and Capital columns, including the revenue and capital earnings/(losses) 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 below form an integral part of these financial statements.

Condensed Unaudited Statement of Financial Position

Note As at 30 April 2021 As at 30 April 2020 As at 31 October 2020* £'000 £'000 £'000 Non-current assets Investments at fair value through profit or loss 385,355 263,758 324,975 Current assets Cash and cash equivalents 11,308 13,467 8,315 Sales for future settlement - 1,420 924 Other receivables 416 329 367 11,724 15,216 9,606 Total assets 397,079 278,974 334,581 Current liabilities Purchases for future settlement (1,940) (237) - Other payables (616) (492) (1,111) Bank loan payable 5 (10,000) (12,500) (12,500) Total liabilities (12,556) (13,229) (13,611) Net assets 384,523 265,745 320,970 Equity Share capital 7 149,616 149,616 149,616 Capital reserve 240,120 121,896 176,563 Revenue reserve (5,213) (5,767) (5,209) Total equity 384,523 265,745 320,970 Net assets per Ordinary share 8 836.55p 578.15p 698.29p *Audited Approved by the Board of Directors and authorised for issue on 23 June 2021 and signed on its behalf by: Helen Green Director The notes below form part of these financial statements.
Condensed Unaudited Statement of Changes in Equity
For the six months to 30 April 2021 Share Capital Revenue capital reserve reserve Total Note £'000 £'000 £'000 £'000 Balance at start of 1 November 2020 149,616 176,563 (5,209) 320,970 Profit for the period - 68,728 (4) 68,724 Dividends paid 9 - (5,171) - (5,171) Balance at 30 April 2021 149,616 240,120 (5,213) 384,523 For the six months to 30 April 2020 Share Capital Revenue capital reserve reserve Total Note £'000 £'000 £'000 £'000 Balance at start of 1 November 2019 149,616 161,204 (5,943) 304,877 Loss for the period - (34,367) 176 (34,191) Dividends paid 9 - (4,941) - (4,941) Balance at 30 April 2020 149,616 121,896 (5,767) 265,745 For the year ended 31 October 2020* Share Capital Revenue capital reserve reserve Total Note £'000 £'000 £'000 £'000 Balance at start of 1 November 2019 149,616 161,204 (5,943) 304,877 Profit for the year - 25,356 734 26,090 Dividends paid 9 - (9,997) - (9,997) Balance at 31 October 2020 149,616 176,563 (5,209) 320,970 *Audited The capital reserve at 30 April 2021 is split between realised gains of £102,386,000 and unrealised gains of £137,734,000 (30 April 2020: realised gains of £89,946,000 and unrealised gains of £31,950,000; 31 October 2020: realised gains of £85,726,000 and unrealised gains of £90,837,000).  The Company's distributable reserves comprise; the Capital reserve attributable to realised profits and the Revenue reserve.    The notes below form an integral part of these financial statements.

Condensed Unaudited Statement of Cash Flow
Six months to 30 April 2021 Six months to 30 April 2020 £'000 £'000 Operating activities Cash inflow from investment income 1,958 2,022 Cash outflow from management expenses (2,269) (1,406) Cash inflow from disposal of investments* 71,991 66,179 Cash outflow from purchase of investments* (60,628) (36,735) Cash outflow from withholding tax (125) (119) Net cash flow from operating activities 10,927 29,941 Financing activities Repayment of bank borrowings (15,000) (12,500) Proceeds from bank borrowings 12,500 - Borrowing commitment fee and interest charges (112) (151) Dividends paid (5,171) (4,941) Net cash flow used in financing activities (7,783) (17,592) Net increase in cash and cash equivalents 3,144 12,349 Effect of foreign exchange (151) (72) Cash and cash equivalents at start of the period 8,315 1,190 Cash and cash equivalents at end of the period 11,308 13,467 * Cash flows 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 below form an integral part of these financial statements.

Selected Explanatory Notes to the Unaudited Financial Statements

For the six month period ended 30 April 2021 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 2021. 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 Company's Manager during the six months ended 30 April 2021 was Aberdeen Standard Fund Managers Limited ('ASFML'). 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 2020. The financial statements of the Company as at and for the year ended 31 October 2020 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 2020. Where presentational guidance set out in the Statement of Recommended Practice ("SORP") for Investment Companies issued by the Association of Investment Companies ("AIC") in April 2021 is consistent with the requirements of IFRS, the Directors have prepared 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 "Revenue" and "Capital" 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, which considered the adequacy of the Company's resources and the impact of the COVID-19 pandemic, in preparing these condensed interim 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 2021, the Company held £11.3 million in cash and cash equivalents and £385.4 million in investments. It is estimated that approximately 71.1% 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 2021 were £1.8 million, which on an annualised basis represented approximately 0.99% 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 (London Branch) ("RBSI"), maturing on 25 March 2022. As at 30 April 2021, £10.0 million was drawn down from the RBSI facility. The liquidity of the Company's portfolio sufficiently supports the Company's ability to repay its borrowings at short notice. As at the date of this report, the loan facility was repaid in full. 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. COVID-19 The rapid spread of COVID-19 led governments across the globe to implement policies to restrict the gathering, interaction and/or movement of people. These policies have inevitably impacted and changed the nature of the operations of some aspects of the Company, its key service providers and companies in its investment portfolio. Share prices respond to assessments of future economic activity as well as their own forecast performance, and the COVID-19 pandemic has had a materially negative impact on the economy and may continue do so for an unknown period of time. The Board and Investment Manager have regular discussions to assess the impact of emerging risks, including COVID-19 on both the investment portfolio and on its ability to maximise returns for shareholders. Capital reserve Profits achieved by selling investments and changes in fair value arising upon the revaluation of investments that remain in the portfolio are all charged to profit or loss in the capital column of the Statement of Comprehensive Income and allocated to the capital reserve. The capital reserve attributable to realised profits can also be used to fund dividend distributions. Revenue reserve The balance of all items allocated to the revenue column of the Statement of Comprehensive Income in each year is transferred to the Company's revenue reserve. The revenue reserve is also used to fund dividend distributions. 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 At the date of approval of these financial statements, there were no new or revised standards or interpretations relevant to the Company which came into effect. 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 investments. 4.  Operating segments IFRS 8, 'Operating segments' requires a 'management approach', under which segment information is presented on the same basis as that used for internal reporting purposes. The Board, as a whole, has been determined as constituting the chief operating decision maker of the Company. The Board has considered the requirements of the standard and is of the view that the Company is engaged in a single segment of business, which is investing in a portfolio of funds and products which give exposure to developing and emerging market economies. The key measure of performance used by the Board is the Net Asset Value of the Company (which is calculated under IFRS). Therefore, no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements. 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 9% 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 17.0% of the total investment income receivable in the period. 5.  Bank loan and finance costs On 29 March 2018, the Company entered into an unsecured 12 month revolving credit facility with The Royal Bank of Scotland plc, under which loans with a maximum aggregate value of £25 million may be drawn. The facility was renewed with The Royal Bank of Scotland International Limited (London Branch) ("RBSI") on 26 March 2021 for a further 12 month period, with a termination date of 25 March 2022. As at 30 April 2021, £10.0 million (2020: £12.5 million) was drawn down at an all-in monthly rate of 0.79800% (2020: 0.76925 %). As at 30 April 2021 £'000 As at 30 April 2020 £'000 As at 31 October 2020 £'000 Interest payable 93 143 184 Facility arrangement fees and other charges 19 8 28 Total finance costs 112 151 212 At 30 April 2021, interest payable of £nil (30 April 2020: £nil and 31 October 2020: £nil) 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 5 shall be of a closed-ended structure.

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

6.  Earnings/(losses) per Ordinary share Earnings per Ordinary share is based on the total comprehensive income for the period ended 30 April 2021, being a profit of £68,724,000 (30 April 2020: loss of £34,191,000) attributable to the weighted average of 45,965,159 (2020: 45,965,159) Ordinary shares in issue (excluding shares held in treasury) during the period ended 30 April 2021. Supplementary information is provided as follows: revenue per share is based on the net revenue loss of £4,000 (30 April 2020: profit of £176,000) and capital earnings per share is based on the net capital profit of £68,728,000 (30 April 2020: loss of £34,367,000) attributable to the above Ordinary shares. 7.  Share capital For the six month period ended 30 April 2021 Authorised Ordinary shares of 1p 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 45,965,159 8,653,348 Purchase of own shares - - - - - Closing number of shares Unlimited 546 54,618,507 45,965,159 8,653,348 For the six month period ended 30 April 2020 Authorised Ordinary shares of 1p 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 45,965,159 8,653,348 Purchase of own shares - - - - - Closing number of shares Unlimited 546 54,618,507 45,965,159 8,653,348 For the year ended 31 October 2020* Authorised Ordinary shares of 1p 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 45,965,159 8,653,348 Purchase of own shares - - - - - Closing number of shares Unlimited 546 54,618,507 45,965,159 8,653,348 *Audited Purchase of own shares There were no Ordinary shares purchased during the six months ended 30 April 2021 (30 April 2020: nil and 31 October 2020: nil). Share capital account The aggregate balance (including share premium) standing to the credit of the share capital account at 30 April 2021 was £149,616,000 (30 April 2020 and 31 October 2020: £149,616,000). 8.  Net asset value per Ordinary share Net asset value per Ordinary share is based on net assets of £384,523,000 (30 April 2020: £265,745,000 and 31 October 2020: £320,970,000) divided by 45,965,159 (30 April 2020: 45,965,159 and 31 October 2020: £45,965,159) 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 2021 As at 30 April 2020 As at 31 October 2020 Net assets (£'millions) NAV per Ordinary share (p) Net assets (£'millions) NAV per Ordinary share (p) Net assets (£'millions) NAV per Ordinary share (p) NAV as published on 4 May 2021;  1 May 2020 and 2 November 2020 respectively   384.8   837.08   264.4   575.27   321.2   698.72 Revaluation adjustments - delayed prices   (0.30)   (0.53)   1.30   2.88   (0.20)   (0.43) NAV as disclosed in these financial statements   384.5   836.55   265.7   578.15   321.0   698.29 9.  Dividends paid The dividends declared in respect of the year ending 31 October 2021 are detailed below: Dividends paid during the year ending 31 October 2021 Dividend type (in respect of the year) - Pay date Pence per Ordinary share Capital reserve £'000 Revenue reserve £'000 Fourth interim (2020) - paid 18 December 2020 5.50 2,528 - First interim (2021) - paid 26 March 2021 5.75 2,643 - Total dividends 11.25 5,171 - On 20 April 2021, the Board declared a second interim dividend in respect of the year ending 31 October 2021 of 5.75p per Ordinary share, payable on 25 June 2021 to those shareholders on the register on 28 May 2021. The Board declares a third interim dividend in respect of the year ending 31 October 2021 of 5.75p per Ordinary share payable on 24 September 2021 to those shareholders on the register on 27 August 2021. Dividends paid during the year ended 31 October 2020 Dividend type (in respect of the year) - Pay date Pence per Ordinary share Capital reserve £'000 Revenue reserve £'000 Fourth interim (2019) - paid 20 December 2019 5.25 2,413 - First interim (2020) - paid 27 March 2020 5.50 2,528 - Second interim (2020) - paid 26 June 2020 5.50 2,528 - Third interim (2020) - paid 25 September 2020 5.50 2,528 - Total dividends 21.75 9,997 -
10.  Related party disclosures Manager Management fees payable are shown in profit or loss in the Condensed Unaudited Statement of Comprehensive Income. At 30 April 2021, management fees of £462,000 (30 April 2020: £319,000 and 31 October 2020: £199,000) were accrued in the Condensed Unaudited Statement of Financial Position. Total management fees for the period were £1,346,000 (30 April 2020: £1,096,000 and 31 October 2020: £2,216,000). Investments held by the Company which are managed by the Standard Life Aberdeen Group As at 30 April 2021, the Company held the following investments managed by the Standard Life Aberdeen Group; As at 30 April 2021 As at 30 April 2020 As at 31 October 2020 £'000 £'000 £'000 Aberdeen Standard SICAV I - China A Share Equity Fund 22,520 14,502 16,688 Aberdeen Asian Income Fund Limited 15,678 7,686 11,414 Aberdeen New India Investment Trust PLC 10,530 6,444 9,061 Aberdeen Standard SICAV I - Frontier Markets Bond Fund 7,980 14,718 13,457 Asia Dragon Trust PLC 6,174 4,237 5,282 Total 62,882 47,587 55,902 Directors Total fees for the Directors in the period ended 30 April 2021 were £76,700 (2020: £77,500). There were no outstanding fees due to the Directors at the period end (2020: nil). As at 30 April 2021 and at the date of this report, the Directors held the following Ordinary shares in the Company. Ordinary shares At 30 April 2021 and at the date of this report Ordinary shares At 31 October 2020 M Hadsley-Chaplin 30,000 30,000 W Collins 15,000 15,000 H Green 1,800 1,800 E de Rochechouart - -
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 2021 is detailed in the table below: 30 April 2021 £'000 30 April 2020 £'000 31 October 2020 £'000 Instruments held at fair value through profit and loss Level 1 322,774 208,402 277,526 Level 2 60,214 54,280 45,320 Level 3 2,367 1,076 2,129 Total 385,355 263,758 324,975 The Company recognises transfers between levels of fair value hierarchy as at the date of the period end in which the change occurred.

There were no investment transferred between levels during the period (30 April 2020: 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 and an investment in Komodo Fund. Tarpon is stated at fair value which is estimated in good faith by the directors following consultation with the Investment Manager with a view to establishing the probable realisable value of this investment. The fair value of Tarpon and its side pocket has been based on an unadjusted net asset value provided by the administrator of that fund. Komodo Fund is valued at the unadjusted net asset values provided by the administrator of that fund. The movement on the level 3 classified investments is shown below: Six months to 30 April 2021 £'000 Six months to 30 April 2020 £'000 Year to 31 October 2020 £'000 Opening balance   2,129 1,779   1,779 Disposals during the year   -  -   (5,592) Profit or loss on disposals during the year   -  -   1,837 Transfer of investment from level 2 to level 3   -  -   6,852 Valuation adjustments*   238 (703)   (2,747) Closing balance   2,367 1,076   2,129 *  Total gains and losses for the period included in profit or loss relating to assets held at the end of the period 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 The Board declares a third interim dividend in respect of the year ending 31 October 2021 of 5.75p per Ordinary share payable on 24 September 2021 to those shareholders on the register on 27 August 2021. There are no other post balance sheet events other than as disclosed in this Half-Yearly Financial Report. 14.  Financial information The Half-Yearly Financial Report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Alternative Performance Measures ("APMs")

	Discount
	The amount, expressed as a percentage, by which the share price is less than the NAV per Ordinary share.
					As at 30 April 2021
	NAV per Ordinary share (pence)		a		836.55
	Ordinary share price (pence)		b		714.00
	Discount		(b÷a)-1		14.6%
	Gearing
	A way to magnify 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 2021
	Total assets less cash/cash equivalents (£'000)		a		385,771
	Net assets (£'000)		b		384,523
	Gearing (net)		(a÷b)-1		0.3%
	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.
	Ongoing charges
	A measure, expressed as a percentage of average NAV, of the regular, recurring annual costs of running an investment company.
					As at 30 April 2021
	Average NAV		a		368,076
	Annualised expenses*		b		3,640
	Ongoing charges		b÷a		0.99%
	* The majority of the Company's portfolio is held in other funds. The Company's ongoing charges figure does not reflect any costs of the underlying funds as the underlying information is not readily available.
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. Six months ended 30 April 2021 Ordinary Share price NAV Opening at 1 November 2020 (pence) a 605.00 698.29 Closing at 30 April 2021 (pence) b 714.00 836.55 Share price/NAV movement (b ÷ a) - 1 c 18.0% 19.8% Dividend reinvestment d 2.0% 1.7% Total return (c+d) 20.0% 21.5% n/a = not applicable Year ended 31 October 2020 Ordinary Share price NAV Opening at 1 November 2019 (pence) a 561.00 663.28 Closing at 31 October 2020 (pence) b 605.00 698.29 Share price/NAV movement (b ÷ a) - 1 c 7.8% 5.3% Dividend reinvestment d 4.4% 3.6% Total return (c+d) 12.2% 8.9%

Contact Addresses

Directors Mark Hadsley-Chaplin (Chairman) William Collins Helen Green John Hawkins (Retired on 20 April 2021) Eleonore de Rochechouart Registered Office 11 New Street St Peter Port Guernsey GY1 2PF Company Secretary and Administrator Vistra Fund Services (Guernsey) Limited 11 New Street St Peter Port Guernsey GY1 2PF 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 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] Company Registration Number Incorporated in Guernsey Number 50900 Website aberdeenemergingmarkets.co.uk

UK Administration Agent PraxisIFM Fund Services (UK) Limited 1st Floor, Senator House 85 Queen Victoria Street London EC4V 4AB Registrars Link Asset Services Longue Hougue House St Sampson Guernsey GY2 4JN Depository Services and Custodian Northern Trust (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3DA Financial Advisor and Stockbroker Shore Capital Markets Limited Cassini House 57-58 St James's Street London SW1A 1LD Advisers as to Guernsey law Mourant Royal Chambers St Julian's Avenue St Peter Port, GY1 4HP Independent Auditor KPMG Channel Islands Limited Glategny Court Glategny Esplanade St Peter Port Guernsey GY1 1WR United States Internal Revenue Service FATCA Registration Number ("GIIN") WLL8YJ.99999.SL.831 Legal Entity Identifier ("LEI") 213800RIA1NX8DP4P938

 

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