Annual Financial Report

RNS Number : 5669S

Aberdeen Latin American Inc Fd Ltd

07 November 2019

ABERDEEN LATIN AMERICAN INCOME FUND LIMITED

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2019

Legal Entity Identifier (LEI): 549300DN623WEGE2MY04

STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS

Investment Objective

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

Gearing

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

Risk Diversification

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

Management

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

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

Financial Calendar

25 October 2019	Payment of fourth interim dividend for year ended 31 August 2019
11 December 2019	Annual General Meeting at 1st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB at 10.00am
31 January 2020	Planned payment of first interim dividend for year ending 31 August 2020
April 2020	Announcement of half yearly results for the six months ending 28 February 2020
29 May 2020	Planned payment of second interim dividend for year ending 31 August 2020
31 July 2020	Planned payment of third interim dividend for year ending 31 August 2020
30 October 2020	Planned payment of fourth interim dividend for year ending 31 August 2020
November 2020	Announcement of results for year ending 31 August 2020

Financial Highlights

Ordinary share price total return{A}		Earnings per Ordinary share (revenue)
+19.9%		4.27p
2018	-18.5%	2018	3.78p
Net asset value total return{A}		Dividends per Ordinary share
+22.4%		3.50p
2018	-18.8%	2018	3.50p
Benchmark total return		Discount to net asset value per Ordinary share{A}
+17.4%		16.0%
2018	-10.9%	2018	13.6%
{A} Considered to be an Alternative Performance Measure.
Source: AAML, Morningstar, Russell Mellon, Lipper & JPMorgan

STRATEGIC REPORT - CHAIRMAN'S STATEMENT

Overview

Latin American markets delivered strong returns during the year under review. Equities were volatile yet ended as one of the best performing emerging markets over the period, while bond markets had comparable returns. Despite global uncertainties and trade worries, domestic events played a larger role in shaping the trajectory of the markets in the region. Most notably, the Brazilian equity market single-handedly pulled the region into positive territory. This was largely due to the positive election outcome and policy developments. Conversely, the Mexican market fell on deteriorating economic activity and Argentina suffered a late decline after unexpected primary election results which gave left-wing candidate Alberto Fernandez a stronger chance of winning the presidential race.

Against this backdrop, I am happy to report that your Company's net asset value ("NAV") rose by 22.4% in sterling terms and on a total returns basis, well ahead of the benchmark's 17.4% gain. Despite the tough market conditions, your Manager's continued commitment to a long-term, bottom-up investment strategy and a firm conviction to the underlying holdings, with their robust balance sheets and good cash flow, supported performance. Further detail is available in your Investment Manager's Review.

A few key themes stood out over the past year, none more so than elections. Two of Latin America's largest economies, Brazil and Mexico, elected new presidents. In Brazil, stocks rebounded on Jair Bolsonaro's win in October, and maintained its upward momentum on encouraging prospects that the proposed pension reforms will be approved. Mexico's President Andrés Manuel López Obrador's ("AMLO") win brought uncertainty around policy making and economic growth. The new government's controversial decisions on key infrastructure projects, based on unconventional public referenda and its interference in banking policies hampered sentiment.

The US-China trade war unsettled markets and, in Mexico, uncertainties over the US-Mexico-Canada Agreement ("USMCA") kept investors guessing. Tensions with the US rose as Washington DC threatened to close the border with Mexico over illegal migration issues. However, negotiations are underway to resolve this and ratify their trade agreement.

Monetary policy also played a major role during the review period, as initial tightening was replaced by the US Federal Reserve's (the "Fed") easing amid global growth concerns. The Fed lowered rates in July; Mexico followed with its first interest rate cut in five years and the government planned to inject US$25.5 billion in stimulus via infrastructure projects and the private-sector. Brazil, Peru and Chile also cut rates amid benign inflation, to boost their weakening economies.

Results and Dividends

The Company's NAV total return was 22.4% for the year ended 31 August 2019, ahead of the 17.4% return of the composite benchmark. On a total return basis, the Ordinary share price rose by 19.9% to 69.2p with the level of discount to NAV per share moving from 13.6% to 16.0% at the year end.

The earnings per Ordinary share for the year ended 31 August 2019 were 4.3p (2017: 3.8p). The Company has maintained four interim dividends of 0.875p per Ordinary share in respect of the year bringing the total level of dividends for the year to 3.5p (2018: 3.5p). Allowing for the payment of the four dividends £454,000 has been transferred to the carried forward revenue reserve. The Company has no current plans to alter the level of the dividends payable to shareholders.

As previously indicated, the Board is pleased to have secured agreement from the Manager to ensure that the Company's ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually as at 31 August. Until further notice, to the extent that the OCR exceeds 2.0% the Manager continues to rebate part of its fees in order to bring that ratio down to 2.0%. Subsequent to the year end a sum of £49,046 has been repaid by the Manager in order to maintain the OCR at 2.0% for the year just ended.

Portfolio

During the year the allocation between equities and bonds was further adjusted with the portfolio composition being 59.1% equities and 40.9% bonds at the period end, as the Investment Manager continued to seek to exploit market opportunities (2018: 52.5% equities 47.5% bonds). The Board and Manager will continue to keep the split under regular review.

Share Capital Management

During the year the Company purchased 2,175,000 Ordinary shares for cancellation at a total consideration of £1.5 million, all at a discount to the NAV per share; resulting in an enhancement of 0.46% in NAV per share. Market volatility continues to impede our ability to have a meaningful impact on the discount through the purchase of the Ordinary shares in the market and over this period the discount to NAV widened from 13.6% to 16.0%. Subsequent to the year end a further 290,000 Ordinary shares have been purchased for cancellation. The Board will continue to make selective use of share buybacks, subject to prevailing market conditions and where to do so would be in Shareholders' interests. At the time of writing the Ordinary shares were trading at a discount of 11.50%.

Change of Management Entity and Company Secretary

On 30 September 2019, subsequent to the financial year end, the Company announced that APWML, the Company's Manager and Company Secretary, had merged with ASCIL, by way of the merger process set out in the Companies (Jersey) Law 1991. Following the merger, ASCIL is the single ongoing entity and the new contracting party to all of APWML's previous agreements.

As a result of the merger, ASCIL became the Company's Manager and Company Secretary with effect from 30 September 2019, on identical terms to the arrangements previously in place with APWML. ASCIL is a wholly owned subsidiary of Standard Life Aberdeen PLC.

The investment management of the Company continues to be delegated from ASCIL to AAML and the changes have no impact upon shareholders.

Gearing

The level of drawings under the Company's three year £8 million multi-currency revolving facility agreement with Scotiabank (Ireland) Designated Activity Company was reduced to £6.0 million from £6.5m in August 2019, representing net gearing of 11.4% at the year end. The Board will continue to monitor the level of gearing under recommendation from the Investment Manager and in the light of market conditions.

Annual General Meeting

The AGM will be held at 10.00 a.m. on Wednesday, 11 December 2019 at the Company's registered office, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB and I look forward to meeting Shareholders on the day.

We are proposing to renew the Company's authority to buy back Ordinary shares subject to the Financial Conduct Authority ("FCA") Listing Rules and Jersey law and any purchases will be at the absolute discretion of the Directors. We are also seeking to renew the authority to issue new Ordinary shares equivalent to up to 10% of the Company's existing Ordinary share capital at the AGM. Ordinary shares will only ever be issued at a premium to NAV per Ordinary share and will therefore be accretive and not disadvantageous to Ordinary Shareholders.

Directorate

During the year the Nomination Committee conducted a search for a new independent non-executive Director using the services of an independent recruitment consultant and I am pleased to report that Ms Heather MacCallum joined the Board on 24 April 2019. Heather was previously a partner with KPMG LLP and has extensive financial services and investment company experience.

In accordance with the Board's on-going succession planning, and following the retirement of Martin Adams on 13 December 2018, George Baird has indicated that he intends to retire from the Board at the conclusion of the AGM to be held on 11 December 2019. I would like to take this opportunity personally, and on behalf of my fellow Directors, to thank George for his significant contribution as a Director since the launch of the Company in 2010 and as Audit Committee Chairman since 2015. Following the conclusion of the AGM, Heather will assume the role of Audit Committee Chair.

Outlook

I remain optimistic about the outlook for Latin American equities amid encouraging regional developments.

Mexico was the first country to ratify the USMCA trade agreement - its final approval by the US and Canada could boost sentiment. Moreover, investors remain optimistic that Brazil's pension reform bill will be approved. President Jair Bolsonaro's administration has shown resolve in pushing for fiscal and structural changes. Such reforms, along with lower interest rates, are expected to attract investments and create jobs, which should fuel the economy.

However, there is some room for caution amid weak global economic conditions and the ongoing trade war. As such, lower demand globally could also result in a further decline in commodity prices. In Mexico, investors remain watchful over political developments with particular focus on the current administration's economic policies, and its stance towards the private sector. Meanwhile, Argentina's outlook remains uncertain as it focuses on stabilising the exchange rate and reducing inflation, while restructuring its debt.

Despite the challenges, I am confident that your Manager's investment approach and on-the-ground presence should aid selection of high-quality investments with strong pricing power and solid fundamentals. These investments are less exposed to risks and tap into the more resilient segments of the economy. Our aim is to invest in companies which will deliver robust, risk-adjusted returns over the long-term. Your Manager will continue to take advantage of market weakness to add to high-conviction holdings or introduce new names at attractive valuations.

Richard Prosser

Chairman

6 November 2019

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Business Model

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

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

Investment Policy and Approach

The Company invests in:

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

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

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

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

Whilst the Board has provided the Investment Manager with broad investment guidelines in order to ensure a spread of risk, the Company's portfolio is not managed by reference to any benchmark and, therefore, the composition of its portfolio is not restricted by minimum or maximum country, market capitalisation or sector weightings.

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

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

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

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

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

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

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

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

Investment Restrictions

The minimum and maximum percentage limits set out under "Investment Policy and Approach" and "Investment Restrictions" will only be applied at the time of the relevant acquisition, trade or borrowing. No more than15% of the Company's or the Subsidiary's gross assets will be invested in any one company.

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

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

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

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

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

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

Duration

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

Benchmark

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

Key Performance Indicators ("KPIs")

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

KPI	Description
Net Asset Value ("NAV") Total Return Performance versus Benchmark Index Total Return	The Board considers the Company's NAV total return figures versus the Benchmark to be the best indicator of performance over time and is therefore the main indicator of performance used by the Board. The figures for this year, three years, five years and since launch are set out in the Annual Report.
Share Price Discount/ Premium to NAV per Ordinary Share	The discount/premium relative to the NAV per share represented by the share price is closely monitored by the Board. The objective is to avoid large fluctuations in the discount relative to similar investment companies investing in the region by the use of share buy backs subject to market conditions. A graph showing the share price discount/premium relative to the NAV is shown in the Annual Report.
Ordinary Share Price Total Return Performance	The Board also monitors the price at which the Company's shares trade relative to the Benchmark on a total return basis over time. A graph showing the total NAV return and the share price performance against the comparative index is shown in the Annual Report.
Dividends per Ordinary Share	The Board's aim is to provide shareholders with an attractive yield. Dividends paid in 2018 and 2019 are set out in the Annual Report.

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

Principal Risks and Uncertainties

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

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

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

The Board has also considered the outcome and potential impact on the Company of the UK General Election scheduled to take place on 12 December 2019 and the resulting impact on the UK Government's Brexit discussions with the European Union. The outcome and potential impact of Brexit are still relatively unclear at the time of writing, and this remains an increased risk for the Company. In particular currency volatility may adversely affect the translation rates of future earnings from the portfolio. Note 15(c) to the financial statements sets out the Company's currency risk disclosures.

Viability Statement

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

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

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

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

- The level of income generated by the Company;

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

- The flexibility of the Company's multi-currency loan facility which matures in August 2020 including the financial covenants of the loans. The Directors will aim to agree a new facility upon the expiry of the current one in 2020 and in the event that satisfactory renewal terms are not available at that time the facility will be repaid from portfolio sales.

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

Promoting the Company

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

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

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow the Board to fulfil its obligations. The Board also recognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, or disability in considering the appointment of its Directors. However, the Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment and, therefore, the Company does not consider it appropriate to set diversity targets. At 31 August 2019, there was an equal number of male and female Directors on the Board.

Environmental, Social and Human Rights Issues

The Company has no employees as it is managed by APWML (merged into ASCIL with effect from 30 September 2019) and ordinarily all activities are contracted out to third party service providers. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined below.

Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter. Furthermore the Company's Manager has confirmed that it complies with the 2015 Modern Slavery Act.

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

Future

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

For and on behalf of the Board

Richard Prosser

Chairman

6 November 2019

STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW

Performance Commentary

Latin American stock markets were choppy during the year under review, but outperformed other emerging markets in sterling terms. On the global front, investors remained cautious as US-China trade tensions continued, with both countries imposing tit-for-tat tariffs. However, the key events that shaped the market came from within the region. The election of far-right presidential candidate Jair Bolsonaro, and his plans to reform the Brazilian pension system and cut public debt, lifted equity market sentiment. Meanwhile, Mexican shares fell with business and consumer confidence hampered by mixed signals from the AMLO administration, added to a dismal economic outlook. Elsewhere, Argentine equities and the Peso sold off near the end of the period after left-wing presidential candidate Alberto Fernandez won a resounding victory over business-friendly incumbent Mauricio Macri in the primary vote.

Against this backdrop, your Company's equity portfolio advanced by 24.25% in sterling terms, ahead of the benchmark MSCI Emerging Markets Latin America 10/40 Index's 16.67% gain.

Latin American fixed income markets had a strong performance in the year under review, as both international and domestic factors supported the decline in bond yields across the region. Sluggish global growth, the absence of inflationary pressures and the U-turn in US monetary policy at the end of last calendar year increased the attractiveness of fixed income investments. Political risks moderated as the new administrations took office in Brazil and Mexico. Although Mexican President AMLO started his term with market-unfriendly decisions, his commitment to maintaining fiscal discipline dissipated some of the market's worst fears. Most regional currencies stabilised following the sell-off in the first half of 2018, and modestly appreciated against sterling over the review period.

Against this backdrop, your Company's bond portfolio advanced by 18.51% in sterling terms, slightly ahead of the benchmark JBI-EM GD Latin America Index's 18.13% gain.

The selection of holdings in Brazil and Mexico bolstered equity performance. At the stock level, the main contributors were fashion retailer Lojas Renner, Localiza Rent A Car, integrated healthcare service provider Notre Dame Intermedica, real estate firm Multiplan and software company TOTVS amid improved sentiment in Brazil and solid results. Software provider Linx also did well as it revealed the launch of its payment business. The lack of exposure to cement maker Cemex and media firm Grupo Televisa contributed to relative performance, given downward earnings revisions for the former and pressured advertising revenues for the latter. Not holding America Movil also helped as the telecommunications firm lagged the local index in Mexico.

On the flip side, your portfolio's lack of exposure to JBS capped gains as the Brazilian protein processor's shares climbed due to the swine flu crisis in China. This was partially mitigated by holding shares in BRF which benefited from the same trend. Not holding lender Banco do Brasil and utilities firm Electrobras held back returns, as both companies rallied on optimism over newly-elected president Bolsonaro's economic reform plans. Our slight underweight in Petrobras also limited performance as it outperformed on the new administration's plan to maximise returns to shareholders, and also reflecting an improved operating environment for the state-owned oil major. In addition, the outlook for airport operators ASUR and OMA deteriorated on concerns around regulatory risks under the AMLO government in Mexico, while steel pipe maker Tenaris' shares fell amid volatile oil prices. Argentina's BBVA Banco Frances was impacted following a market selloff on Fernandez's win over Macri by a wide margin at the primary polls.

Brazil was the best performer within fixed income markets, as the new legislature moved closer to adopting the much needed social security reform, while below-target inflation allowed the central bank to restart its rate cutting cycle in July 2019 after a prolonged pause. Similarly, monetary policy easing supported strong performance in the Chilean and Peruvian bond markets. The worst performer by a significant margin was Argentina, which saw a 40% depreciation of its exchange rate against sterling. The weakness of the economy aggravated the fiscal troubles, while the central bank struggled to rein in rampant inflation. Argentina's difficulties had little impact on the rest of the region with the sole exception of Uruguay, where contagion from its neighbour weighed on currency.

Our long duration and currency overweight positions in Brazil provided the largest positive contribution to performance over the review period, followed by the underweight exposure to Colombia. Despite the large sell-off in Argentina, our overweight allocation there had a positive contribution, as our exposure was concentrated in short-dated policy-rate-linked bonds, which have outperformed conventional bonds. The largest drag on performance was our overweight exposure to Uruguay, but the lack of exposure to Chile also detracted from relative performance.

Portfolio Activity

During the period, we made several changes to the equity holdings within your portfolio. Notably, we exited Brazilian security printing services firm Valid after a rebound in its share price, as well as clothing firm Hering and lender Bancolombia on our lower conviction and their relative outperformance. The proceeds were subsequently reinvested in other high-conviction names. We also sold shopping mall operator Iguatemi to fund better opportunities elsewhere. Your portfolio now includes Petrobras, Notre Dame Intermedica, Rumo and Geopark. We see an improved business outlook as well as attractive valuations for Brazil's state-owned oil major Petrobras. Notre Dame is one of Brazil's biggest healthcare operators. We took advantage of the discount on its follow-on offer to invest in the firm. Rumo is Brazil's leading railway operator. We added the company based on our conviction to its long-term growth prospects. Meanwhile, Geopark is a regional oil-and-gas firm with a solid exploration and production track record, and attractive valuation.

From a fixed income perspective, we increased our overweight exposure in Brazil, during the period favouring the longer end of the government yield curve. However, towards the end of the period we hedged part of the Real exposure as currency valuation became stretched. In Mexico we rotated our bond position to increase our active duration positions, anticipating a rate cutting cycle on the back of weak economic activity, but took a cautious stance on the currency given the elevated level of policy unpredictability. We have cut our duration exposure in Colombia expecting the central bank to remain behind the curve. We also significantly reduced our exposure to Argentina in the run-up to the 2019 August primary elections.

Outlook

Latin America has proven its resilience in the face of global and domestic shocks. We expect this resilience to persist despite anticipating lingering concerns over the US-China trade dispute and its impact on global economic growth. Argentina will face a challenging political transition with a possible debt restructuring, generating a lot of headline noise, but contagion to the rest of the region should be negligible, just as has been the case with Venezuela. We expect global monetary policy to remain accommodative in the coming quarters, providing support and fostering demand for higher risk assets, while regional central banks will also support their economies through lower interest rates. Local politics, reform and infrastructure developments, particularly in Brazil and Mexico, will be important in driving equity investor sentiment. This could have an effect on corporate earnings and share prices. In the longer term, population growth and an expanding middle class should keep the outlook positive for Latin American economies. Most companies, in particular financials and consumer-focused companies, will in turn benefit from this momentum. Moreover, valuations remain attractive relative to their global peers.

In such an environment, we are optimistic about your Company's outlook. We are focused on selecting stocks that can benefit from stable growth, healthy consumption and structural improvements. This along with their healthy balance sheets and sound leadership provide us with added confidence. We continue to engage with companies' management to ensure that their goals are aligned with that of the shareholders', and remain diligent in our efforts to boost shareholder returns. At the same time, we will look out for other quality companies that can take advantage of new growth opportunities, to ensure that the portfolio remains well-positioned for the future.

Aberdeen Asset Managers Limited

6 November 2019

STRATEGIC REPORT - RESULTS

	31 August 2019	31 August 2018	% change
Total assets (£'000)	53,755	48,825	10.1
Total equity shareholders' funds (net assets) (£'000)	47,755	42,325	12.8
Market capitalisation (£'000)	40,136	36,587	9.7
Ordinary share price (mid market)	69.20p	60.80p	13.8
Net asset value per Ordinary share	82.34p	70.34p	17.1
Discount to net asset value per Ordinary share{AB}	15.95%	13.56%
Net gearing {AB}	11.41%	14.17%

Dividends and earnings
Total return/(loss) per Ordinary share	15.20p	(16.84)p
Earnings per Ordinary share (revenue)	4.27p	3.78p	13.0
Dividends per Ordinary share	3.50p	3.50p
Dividend cover{AB}	1.22 times	1.08 times
Revenue reserves{B} (£'000)	2,704	2,250

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

{A} Considered to be an Alternative Performance Measure.
{B} Excludes payment of fourth interim dividend of 0.875p (2018 - 0.875p) per Ordinary share equating to £507,000 (2018- £526,000).
{C} Details of a cap on the ongoing charges ratio can be found in notes 6 and 17 to the financial statements.

PERFORMANCE (TOTAL RETURN)

	1 year	3 year	5 year	Since launch{A}
	% return	% return	% return	% return
Ordinary share price{B}	+19.90%	+20.93%	+11.93%	+9.40%
Net asset value{B}	+22.38%	+24.35%	+14.89%	+26.57%
Benchmark	+17.44%	+26.92%	+19.38%	+29.60%

Total return represents the capital return plus dividends reinvested.
{A} Launch date 16 August 2010.
{B} Considered to be an Alternative Performance Measure.

DIVIDENDS

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

	Rate	xd date	Record date	Payment date
1st interim 2018	0.875p	14 December 2017	15 December 2017	30 January 2018
2nd interim 2018	0.875p	26 April 2018	27 April 2018	11 May 2018
3rd interim 2018	0.875p	12 July 2018	13 July 2018	27 July 2018
4th interim 2018	0.875p	4 October 2018	5 October 2018	26 October 2018
	______
Total dividends 2018	3.500p
	______

INVESTMENT PORTFOLIO

Ten Largest Equity Investments

As at 31 August 2019

			Valuation	Total	Valuation
			2019	assets	2018
Company	Sector	Country	£'000	%{A}	£'000
Banco Bradesco {B}
A leading privately-owned Brazilian bank with a well-recognised brand, robust loan portfolio and experienced management team.	Financials	Brazil	2,779	5.2	1,871
Petrobras{C}
Brazilian state owned oil & gas company primarily engaged in exploration and production, refining, energy generation, trading and distribution of oil products.	Energy	Brazil	2,432	4.5	-
Itau Unibanco Holdings {B}
Brazil's largest privately-owned bank, it is well-capitalised with sound growth prospects and asset quality.	Financials	Brazil	2,201	4.1	1,946
Grupo Financiero Banorte
Mexico's leading privately-owned bank with a well-recognised nationwide brand, sizeable pension business and proven track record in conservative lending.	Financials	Mexico	1,518	2.8	1,353
Fomento Economico Mexicano ADR
FEMSA participates in beverages through Coca-Cola FEMSA, the largest Coca-Cola bottler globally. The company also participates in small-format convenience stores, gas stations and pharmacies through FEMSA Comercio.	Consumer Staples	Mexico	1,353	2.5	1,254
Lojas Renner{C}
One of Brazil's largest clothing retailers with a complementary financing arm catering to customers' store credit needs. More recently Lojas Renner has ventured into neighbouring Uruguay and launched a home furnishing brand by the name of Camicado.	Consumer Discretionary	Brazil	1,302	2.4	1,061
Bradespar{C}
A holding company where the single underlying asset is Brazil's iron ore producer Vale.	Materials	Brazil	1,218	2.3	1,108
B3 Brasil Bolsa Balco{C}
B3 is a vertically integrated stock exchange provider of securities, commodities and futures trading services along with depository and registration for fixed income securities and clearinghouse for private assets in Brazil.	Financials	Brazil	1,161	2.2	680
Grupo Aeroportuario Sureste ADR
One of Mexico's leading airport operators, responsible for running Cancun airport amongst a number of others in Mexico. The company also operates airports in Puerto Rico and more recently Colombia.	Industrials	Mexico	1,061	2.0	1,372
Wal-Mart De Mexico
The largest food and general retailer in Mexico with an established presence across a number of smaller Central American markets.	Consumer Staples	Mexico	956	1.8	1,063
Top ten equity investments			15,981	29.8
{A} See definition in the Annual Report.
{B} Holding includes investment in equity and ADR
{C} Held in Subsidiary.
Portfolio investments reflect consolidated investee holdings of the Company and its Subsidiary.

Investment Portfolio - Other Investments

As at 31 August 2019

			Valuation	Total	Valuation
			2019	assets	2018
Company	Sector	Country	£'000	%{A}	£'000
Vale ADR	Materials	Brazil	913	1.7	867
Ambev{B}	Consumer Staples	Brazil	895	1.7	1,045
Multiplan Empreendimentos NPB{B}	Real Estate	Brazil	884	1.6	821
Localiza Rent A Car{B}	Industrials	Brazil	864	1.6	436
Arca Continental	Consumer Staples	Mexico	783	1.5	685
BRF{B}{C}	Consumer Staples	Brazil	733	1.4	493
Arezzo Industria e Comercio{B}	Consumer Discretionary	Brazil	648	1.2	486
Itausa Investimentos Itau{B}	Financials	Brazil	569	1.1	255
Rumo{B}	Consumer Discretionary	Brazil	559	1.0	-
WEG{B}	Industrials	Brazil	558	1.0	437
Top twenty equity investments			23,387	43.6
Banco Santander-Chile ADR	Financials	Chile	516	1.0	509
Parque Arauco{B}	Real Estate	Chile	511	1.0	451
Notredame Intermedica{B}	Health Care	Brazil	488	0.9	-
TOTVS{B}	Information Technology	Brazil	468	0.9	299
Embotelladora Andina 'A' Pref{B}	Consumer Staples	Chile	455	0.8	538
Infraestructura Energetica	Industrials	Mexico	452	0.8	389
Globant	Information Technology	Argentina	445	0.8	354
S.A.C.I Falabella{B}	Consumer Discretionary	Chile	392	0.7	599
Wilson, Sons{B}	Industrials	Brazil	384	0.7	352
Ultrapar Participacoes {C}	Energy	Brazil	380	0.7	612
Top thirty equity investments			27,878	51.9
Kimberly-Clark de Mexico	Consumer Staples	Mexico	356	0.7	286
Cementos Pacasmayo	Materials	Peru	347	0.6	351
Geopark	Energy	Chile	332	0.6	-
Linx{B}	Information Technology	Brazil	326	0.6	291
Banco Santander Mexico	Financials	Mexico	313	0.6	-
Raia Drogasil{B}	Consumer Staples	Brazil	313	0.6	290
Odontoprev{B}	Health Care	Brazil	302	0.6	286
Tenaris ADR	Energy	Argentina	262	0.5	239
Hoteles City Express	Consumer Discretionary	Mexico	235	0.4	330
Grupo Aeroportuario Centro Norte	Industrials	Mexico	204	0.4	150
Top forty equity investments			30,868	57.5
BBVA Banco Frances	Financials	Argentina	120	0.2	212
Grana Y Montero	Industrials	Peru	119	0.2	143
Grupo Lala	Consumer Staples	Mexico	65	0.1	205
BK Brasil{B}	Consumer Staples	Brazil	30	0.1	-
Fossal	Materials	Peru	2	-	2
Total equity investments			31,204	58.1

{A} See definition in the Annual Report.
{B} Held in Subsidiary
{C} Holding includes investment in equity and ADR

Portfolio investments reflect consolidated investee holdings of the Company and its Subsidiary.

Investment Portfolio - Bonds
As at 31 August 2019
			Valuation	Total	Valuation
			2019	assets	2018
Issue	Sector	Country	£'000	%{A}	£'000
Brazil (Fed Rep of) 10% 01/01/25{B}	Government Bonds	Brazil	4,405	8.2	3,735
Brazil (Fed Rep of) 10% 01/01/21{B}	Government Bonds	Brazil	2,671	5.0	2,341
Colombia (Rep of) 9.85% 28/06/27	Government Bonds	Colombia	2,598	4.8	3,554
Mex Bonos Desarr Fix Rt 10% 20/11/36	Government Bonds	Mexico	2,301	4.3	1,533
Mexico (United Mexican States) 8.5% 18/11/38	Government Bonds	Mexico	1,980	3.7	1,899
Uruguay (Rep of) 4.375% 15/12/28	Government Bonds	Uruguay	1,902	3.5	1,695
Peru (Rep of) 6.95% 12/08/31	Government Bonds	Peru	1,405	2.6	1,310
Brazil (Fed Rep of) 10% 01/01/27{B}	Government Bonds	Brazil	1,119	2.1	1,040
Petroleos Mexicanos 7.47% 12/11/26	Government Bonds	Mexico	898	1.7	-
Uruguay (Rep of) 4.25% 05/04/27	Government Bonds	Uruguay	759	1.4	765
Peru (Rep of) 6.95% 12/08/31	Government Bonds	Peru	478	0.9	418
Uruguay (Rep of) 9.875% 20/06/22	Government Bonds	Uruguay	454	0.8	1,367
Mex Bonos Desarr Fix Rt 10% 05/12/24	Government Bonds	Mexico	288	0.5	1,243
Mexico (United Mexican States) 7.75% 13/11/42	Government Bonds	Mexico	150	0.3	138
Petroleos Mexicanos 7.19% 12/09/24	Government Bonds	Mexico	132	0.2	-
Argentina (Rep of) Frn 21/06/20	Government Bonds	Argentina	50	0.1	380
Total value of Bonds			21,590	40.1
Total value of equity investments			31,204	58.1
Total value of portfolio investments			52,794	98.2
Other net assets held in subsidiary			533	1.0
Total investments			53,327	99.2
Net current assets{C}			428	0.8
Total assets{A}			53,755	100.0

{A} See definition in the Annual Report.
{B} Held in Subsidiary.
{C} Excluding bank loans of £6,000,000.

Portfolio investments reflect consolidated investee holdings of the Company and its Subsidiary.

DIRECTORS' REPORT

The Directors present their Report and the audited financial statements for the year ended 31 August 2019.

Status

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

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

Results and Dividends

Details of the Company's results and dividends are shown in the Annual Report. The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 August 2019 dividends have been paid in January, May, August and October 2019.

Management Arrangements

The Company has an agreement (the "Management Agreement") with APWML for the provision of management, company secretarial and promotional services, details of which are shown in notes 5, 6 and 17 to the financial statements. As set out in the Chairman's Statement, APWML merged with ASCIL on 30 September 2019. Following the merger, ASCIL assumed responsibility for the provision of management, company secretarial and promotional services for the Company, with no changes to how the Company is managed and no impact to shareholders.

Under the Management Agreement, the Manager is entitled to both a management fee and a company secretarial and administration fee. The Manager has agreed to ensure that the Company's ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually as at 31 August. Until further notice, to the extent that the OCR ever exceeds 2.0% the Manager will rebate part of its fees in order to bring that ratio down to 2.0%. In relation to the year ended 31 August 2019 an OCR rebate of £49,000 was payable by the Manager in order to ensure that the OCR did not exceed 2.0%.

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

Share Capital

As at 31 August 2019 there were 58,000,324 Ordinary shares in issue and 6,107,500 Ordinary shares held in treasury. Details of changes to the Company's shares in issue during the year are provided in 'Your Company's Share Capital History' in the Annual Report.

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

Risk Management

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

Directors

The current Directors, Richard Prosser, Hazel Adam, George Baird and Heather MacCallum (appointed 24 April 2019), together with Martin Adams (retired 13 December 2018), were the only Directors in office during the period.

The Directors' beneficial holdings are disclosed in the Directors' Remuneration Report. No Director has a service contract with the Company. The Directors' interests in contractual arrangements with the Company are as shown in note 17 to the financial statements. Details of the Directors retiring and seeking election or re-election at the Annual General Meeting on 11 December 2019 are disclosed below within the Nomination Committee section.

Corporate Governance

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

The Company is a member of the Association of Investment Companies ("AIC"). The Board has considered the principles and recommendations of the AIC Code of Corporate Governance for Jersey-domiciled member companies ("AIC Code") by reference to the AIC Corporate Governance Guide for Investment Companies ("AIC Guide"). The AIC Code, as explained by the AIC Guide, addresses all the principles set out in the UK Corporate Governance Code, as well as setting out additional principles and recommendations on issues which are of specific relevance to the Company. Both the AIC Code and the AIC Guide are available on the AIC's website: theaic.co.uk.

In July 2018, the Financial Reporting Council ("FRC") issued an updated version of the UK Corporate Governance Code, which takes effect in respect of financial years commencing on or after 1 January 2019. In February 2019, the AIC issued a revised version of the AIC Code with an application date for accounting periods commencing on or after 1 January 2019. The Board is considering the implications and future reporting requirements of the revised codes.

The Company has complied throughout the accounting period with the relevant provisions contained within the AIC Code and the relevant provisions of the UK Corporate Governance Code except as set out below.

The UK Corporate Governance Code includes provisions relating to:

- the role of the chief executive (A.1.2);

- executive directors' remuneration (D.2.1 and D.2.2);

- the need for a Senior Independent Director (A.4.1); and,

- and the need for an internal audit function (C.3.6).

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

The Directors attended Board and Committee meetings during the year ended 31 August 2019 as follows (with their eligibility to attend the relevant meeting in brackets):

	Board	Audit Committee	MEC	Nomination Committee
R Prosser	4 (4)	2 (2)	1 (1)	1 (1)
H Adam	4 (4)	2 (2)	1 (1)	1 (1)
G Baird	4 (4)	2 (2)	1 (1)	1 (1)
H MacCallum*	1 (1)	1 (1)	0 (0)	0 (0)
M Adams**	1 (1)	1 (1)	1 (1)	1 (1)

* Ms H MacCallum was appointed to the Board on 24 April 2019

** Mr M Adams retired from the Board on 13 December 2018

Policy on Tenure

The Board's policy on tenure is that Directors need not serve on the Board for a limited period of time only. The Board does not consider that the length of service of a Director is as important as the contribution he or she has to make, and therefore the length of service will be determined on a case-by-case basis. The Company's Articles of Association require that all Directors shall submit themselves for election by Shareholders at the first opportunity following their appointment and shall not remain in office longer than three years since their last election or re-election without submitting themselves to re-election. However, in accordance with corporate governance best practice, the Board has agreed that all Directors will retire from the Board annually and voluntarily offer themselves for election or re-election by Shareholders.

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

The Board has put in place necessary procedures to conduct, on an annual basis, an appraisal of the Chairman of the Board, Directors' individual self-evaluation and a performance evaluation of the Board as a whole. For the year to 31 August 2019 this was undertaken using detailed questionnaires followed by one-on-one discussions. The outcome of the appraisal process was judged by the Board to be satisfactory with all Directors having contributed effectively at the meetings that they had attended during the year. The Board also reviewed the Chairman's and Directors' other commitments and is satisfied that the Chairman and other Directors are capable of devoting sufficient time to the Company.

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

Board Committees

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

Audit Committee

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

Management Engagement Committee ("MEC")

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

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

Nomination Committee

Appointments to the Board of Directors are considered by the Nomination Committee which comprises the entire Board. The Committee has defined terms of reference which are reviewed and re-assessed for their adequacy on an annual basis. Copies of the terms of reference are published on the Company's website: latamincome.co.uk. Mr R Prosser is Chairman of the Nomination Committee. Possible new Directors are identified by the Nomination Committee against the requirements of the Company's business and the need to have a balanced Board. Every Director is entitled to receive appropriate training as deemed necessary including a full induction from the Manager. The induction includes meetings with the Manager's compliance, internal audit, investor relations and promotional teams as well as an in-depth meeting with the individual portfolio managers. The Board's overriding priority when appointing new Directors to the Board will be to identify the candidate with the best range of skills and experience to complement existing Directors.

During the year the Nomination Committee initiated a search to find a new independent non-executive Director, using the services of Thomas & Dessain, an independent search consultant. The Directors drew up a specification for the appointment and interviewed a shortlist of suitable candidates. Following review, the Directors appointed Ms Heather MacCallum as an independent non-executive Director of the Company with effect from 24 April 2019. Further details on Ms H MacCallum are provided in the Chairman's Statement.

At the AGM on 13 December 2019, Mr R Prosser and Ms H Adam will offer themselves for re-election and Ms H MacCallum will offer herself for election. As set out in the Chairman's Statement, Mr G Baird will retire at the AGM, having served on the Board since 2010. The Board considers that there is a balance of skills and experience within the Board relevant to the leadership and direction of the Company and that all Directors contribute effectively. In accordance with the provisions of the AIC Code of Corporate Governance for Jersey Domiciled Investment Companies, the independent Directors have scrutinised the contribution and independence of Mr Prosser who has now served on the Board for nine years and five months and they are unanimously of the opinion that Mr Prosser remains independent of the Manager. Accordingly, the Board has no hesitation in recommending to Shareholders the re-election of Mr R Prosser. The Board has also reviewed, and wholeheartedly supports, the proposed re-election and election of Ms H Adam and Ms H MacCallum respectively.

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

Going Concern

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

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

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

Internal Controls and Risk Management

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

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. The FRC's Guidance on Risk Management, Internal Control and Related Financial Business Reporting ("FRC Guidance"), assists Directors in applying section C.2 of the UK Corporate Governance Code. The Board confirms that there is an ongoing process for identifying, evaluating and managing the principal risks faced by the Company. This process has been in place for the period under review and up to the date of approval of this Annual Report and financial statements, and is regularly reviewed by the Board and accords with the guidance. The Board has reviewed the effectiveness of the system of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the principal risks affecting the Company and policies by which these risks are managed. The principal risks and uncertainties faced by the Company are detailed in the Strategic Report.

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

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

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

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

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

- at its November 2019 meeting, the Audit Committee members carried out an annual assessment of internal controls for the year ended 31 August 2019 by considering documentation from Aberdeen Standard Investments, including the internal audit and compliance functions and taking account of events since 31 August 2019. The results of the assessment were then reported to the Directors at the Board meeting which followed; and,

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

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

Management of Conflicts of Interest

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

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

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

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

Substantial Interests

The Company has been advised that the following Shareholders owned 3% or more of the issued Ordinary share capital of the Company at 31 August 2019:

Shareholder	Number Of shares held	% held
City of London Investment Management	11,875,573	20.5
1607 Capital Partners	7,878,369	13.6
Aberdeen Standard Retail Plans	7,176,515	12.4
Hargreaves Lansdown, stockbrokers	4,600,321	8.1
Philip J Milton Stockbrokers	3,028,161	5.2
Interactive Investor	1,742,072	3.0

On 5 September 2019, City of London Investment Management Company Limited notified the Company that its holding had increased to 12,214,622 Ordinary shares (21.1%). There have been no other significant changes notified in respect of the above holdings between 31 August 2019 and 6 November 2019.

Alternative Investment Fund Managers Directive ("AIFMD")

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

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

Annual General Meeting

The AGM will be held at 10.00 a.m. on Wednesday, 11 December 2019 at the Company's registered office, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB. Resolutions including the following business will be proposed:

Dividend Policy

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

The Company's dividend policy shall be that dividends on the Ordinary Shares are payable quarterly in relation to periods ending November, February, May and August. It is intended that the Company will pay quarterly dividends consistent with the expected annual underlying portfolio yield. Resolution 3 will seek shareholder approval for the dividend policy.

Authority to Purchase the Company's Shares

In the past the Company has quoted that the aim of its discount management policy has been to try to maintain the price at which the Ordinary shares trade relative to the Company's NAV at a discount of no more that 5%. As stated in the Chairman's Statement, the Company's discount to NAV widened from 13.6% to 16.0% during the financial year to 31 August 2019 as market volatility continued to impede the Company's ability to have a meaningful impact on the discount through the purchase of the Ordinary shares. During the year under review the Company bought back 2,175,000 Ordinary shares for cancellation at a cost of £1,485,000. Subsequent to the period end a further 290,000 Ordinary shares have been purchased for cancellation at a cost of £ 204,405.

Purchases of Ordinary shares will only be made through the market for cash at prices below the prevailing exclusive of income NAV per Ordinary share (as last calculated) where the Directors believe such purchases will enhance Shareholder value and are likely to assist in narrowing any discount to NAV at which the Ordinary shares may trade.

Resolution 9, a special resolution, will be proposed to renew the Directors' authority to make market purchases of the Ordinary shares in accordance with the provisions of the FCA's Listing Rules. The Company will seek authority to purchase up to a maximum of 8,650,778 Ordinary shares (representing 14.99% of the current issued Ordinary share capital excluding treasury shares as at the date of publication of this Annual Report). The authority being sought shall expire at the conclusion of the Annual General Meeting in 2020 unless such authority is renewed prior to that time. Any Ordinary shares purchased in this way will either be cancelled and the number of Ordinary shares will be reduced accordingly, or the Ordinary shares will be held in treasury, in accordance with the authority previously conferred by Shareholders.

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

Directors' Authority to Allot Relevant Securities

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

Unless previously disapplied by special resolution, in accordance with the FCA's Listing Rules, the Company is required to first offer any new shares or securities (or rights to subscribe for, or to convert or exchange into, shares) proposed to be issued for cash to Shareholders in proportion to their holdings in the Company. In order to provide for such share issues, your Board is therefore also proposing that an annual disapplication of the pre-emption rights is given to the Directors so that they may issue shares as and when appropriate. Accordingly, resolution 10, a Special resolution, proposes a disapplication of the pre-emption rights in respect of 10% of the shares in issue, set to expire on the earlier of fifteen months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2020.

Reappointment of Independent Auditor

Our auditor, Ernst & Young LLP, has indicated its willingness to remain in office. The Directors will place a resolution before the Annual General Meeting to re-appoint them as independent auditor for the ensuing year, and to authorise the Directors to determine their remuneration.

Relations with Shareholders

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

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

The Notice of the Annual General Meeting included within the Annual Report and financial statements is ordinarily sent out at least 20 working days in advance of the meeting. All Shareholders have the opportunity to put questions to the Board or Manager, either formally at the Company's AGM or informally following the meeting. The Company Secretary is available to answer general Shareholder queries at any time throughout the year. The Directors are keen to encourage dialogue with Shareholders and the Chairman welcomes direct contact from Shareholders.

UK Stewardship Code and Proxy Voting as an Institutional Shareholder

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

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

Environmental, Social and Governance (ESG) Policy

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

For and on behalf of the Board

Aberdeen Standard Capital International Limited

Secretary

6 November 2019

1^st Floor, Sir Walter Raleigh House

48 - 50 Esplanade,

St Helier

Jersey JE2 3QB

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

- select suitable accounting policies and then apply them consistently;

- make judgments and estimates that are reasonable;

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

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

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

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

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

Declaration

The Directors listed in the Directors' Report, being the persons responsible, hereby confirm to the best of their knowledge:

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

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

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

For and on behalf of the Board

Richard Prosser

Chairman

6 November 2019

1st Floor, Sir Walter Raleigh House

48 - 50 Esplanade,

St Helier

Jersey JE2 3QB

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

STATEMENT OF COMPREHENSIVE INCOME

		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Income
Income	4	3,230	-	3,230	3,095	-	3,095
Realised losses on financial assets held at fair value through profit or loss		-	(2,939)	(2,939)	-	(11,777)	(11,777)
Unrealised gains/(losses) on financial assets held at fair value through profit or loss		-	9,821	9,821	-	(266)	(266)
Realised currency losses		-	(38)	(38)	-	(21)	(21)
Unrealised currency gains		-	83	83	-	65	65
Realised losses on forward foreign currency contracts		-	(59)	(59)	-	(103)	(103)
(Losses)/gains on forward foreign currency contracts		-	(49)	(49)	-	61	61
		_______	_______	_______	_______	_______	_______
		3,230	6,819	10,049	3,095	(12,041)	(8,946)
		_______	_______	_______	_______	_______	_______
Expenses
Investment management fee	5	(213)	(320)	(533)	(222)	(333)	(555)
Other operating expenses	6	(411)	-	(411)	(473)	-	(473)
		_______	_______	_______	_______	_______	_______
Profit/(loss) before finance costs and taxation		2,606	6,499	9,105	2,400	(12,374)	(9,974)

Finance costs		(49)	(73)	(122)	(42)	(63)	(105)
		_______	_______	_______	_______	_______	_______
Profit/(loss) before taxation		2,557	6,426	8,983	2,358	(12,437)	(10,079)

Taxation	7	(32)	35	3	(45)	(171)	(216)
		_______	_______	_______	_______	_______	_______
Profit/(loss) for the year		2,525	6,461	8,986	2,313	(12,608)	(10,295)
		_______	_______	_______	_______	_______	_______

Earnings per Ordinary share (pence)	9	4.27	10.93	15.20	3.78	(20.62)	(16.84)
		_______	_______	_______	_______	_______	_______

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

BALANCE SHEET

		As at	As at
		31 August 2019	31 August 2018
	Notes	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	10	53,327	48,277
		_______	_______
Current assets
Cash		459	411
Forward foreign currency contracts		62	96
Other receivables		392	442
		_______	_______
Total current assets		913	949
		_______	_______
Total assets		54,240	49,226

Current liabilities
Bank loan	11	(6,000)	(6,500)
Forward foreign currency contracts		(111)	(35)
Other payables		(238)	(195)
		_______	_______
Total current liabilities		(6,349)	(6,730)
		_______	_______
Non-current liabilities
Deferred tax liability on Mexican capital gains	7	(136)	(171)
Net assets		47,755	42,325
		_______	_______
Equity capital and reserves
Equity capital	12	65,936	65,936
Capital reserve	13	(20,885)	(25,861)
Revenue reserve		2,704	2,250
		_______	_______
Equity Shareholders' funds		47,755	42,325
		_______	_______

Net asset value per Ordinary share (pence)	14	82.34	70.34
		_______	_______

The financial statements were approved by the Board of Directors and authorised for issue on 6 November 2019 and were signed on its behalf by:

Richard Prosser

Chairman

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

STATEMENT OF CHANGES IN EQUITY

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

Year ended 31 August 2018
		Stated	Capital	Revenue
		capital	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000
Balance at 1 September 2017		65,936	(11,846)	2,080	56,170
(Loss)/profit for the year		-	(12,608)	2,313	(10,295)
Dividends paid	8	-	-	(2,143)	(2,143)
Purchase of own shares		-	(1,407)	-	(1,407)
		_______	_______	_______	_______
Balance at 31 August 2018		65,936	(25,861)	2,250	42,325
		_______	_______	_______	_______

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

CASH FLOW STATEMENT

	Year ended	Year ended
	31 August 2019	31 August 2018
	£'000	£'000
Dividend income	530	508
Fixed interest income	1,508	1,510
Income from Subsidiary	1,107	1,190
Interest income	4	2
Investment management fee paid	(525)	(522)
Other paid expenses	(336)	(508)
	_______	_______
Cash generated from operating activities before finance costs and taxation	2,288	2,180

Interest paid	(122)	(104)
Withholding taxes paid	(40)	(42)
	_______	_______
Net cash inflow from operating activities	2,126	2,034

Cash flows from investing activities
Purchases of investments	(4,827)	(7,853)
Proceeds from sales of investments	7,581	8,483
(Payments to)/receipts from Subsidiary	(778)	651
	_______	_______
Net cash inflow from investing activities	1,976	1,281

Cash flows from financing activities
Equity dividends paid	(2,071)	(2,143)
Repurchase of own shares	(1,469)	(1,415)
Loan repaid	(500)	-
	_______	_______
Net cash outflow from financing activities	(4,040)	(3,558)
	_______	_______
Net increase/(decrease) in cash	62	(243)
Foreign exchange	(14)	1
Cash at start of year	411	653
	_______	_______
Cash and cash equivalents at end of year	459	411
	_______	_______

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

NOTES TO THE FINANCIAL STATEMENTS

1.	Principal activity
	The Company is a closed-end investment company incorporated in Jersey, and its shares are traded on the London Stock Exchange and are listed in the premium segment of the Financial Conduct Authority's Official List. The Company's principal activity is investing in Latin American securities.

	The principal activity of its Delaware incorporated wholly owned subsidiary, Aberdeen Latin American Income Fund LLC, is similar in all relevant respects to that of its parent.

2.	Accounting policies
	(a)	Basis of preparation
		The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 August 2019.

		The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB). The financial statements have been prepared on a historical-cost basis, except for financial assets and financial liabilities held at fair value through profit or loss.

		The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future and, for this reason, they continue to adopt the going concern basis in preparing the financial statements.

		The Company's financial statements are presented in sterling, which is also the functional currency as it is the currency in which shares are issued and expenses are generally paid. All values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

		Where presentational guidance set out in the Statement of Recommended Practice ("SORP"): 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by the Association of Investment Companies ("AIC"), is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP issued in November 2017 and updated in February 2018 with consequential amendments (applicable for accounting periods beginning on or after 1 January 2019 but adopted early).

		Significant accounting judgements, estimates and assumptions
		The preparation of financial statements in conformity with IFRS requires the use of certain significant accounting judgements, estimates and assumptions which requires management to exercise its judgement in the process of applying the accounting policies. Management have identified one such judgement and one such estimate in preparing the financial statements.

		Accounting judgement - Application of IFRS 10: Assessment of investment entity
		One of the key areas for consideration has been the application of IFRS 10 'Consolidated Financial Statements' including the Amendments, 'Investment entities (Amendments to IFRS 10, IFRS 12 and IAS 27) (Investment Entity Amendments)'. The standard requires entities that meet the definition of an investment entity to fair value certain subsidiaries through profit or loss in accordance with IFRS 9 'Financial Instruments', rather than consolidate their results. However, entities which are not themselves investment entities and provide investment related services to the Company will continue to be consolidated.

		Entities which meet the definition of an investment entity are required to fair value subsidiaries through profit or loss rather than consolidate them. An investment entity meets the definition of an investment entity if it satisfies the following three criteria:
		(i)	an entity obtains funds from one or more investors for the purpose of providing those investors with investment services; the Company provides investment services and has several investors who pool funds to gain access to these services and investment opportunities which they might not be able to as individuals.
		(ii)	an entity commits to its investors that its business purpose is to the investment in its subsidiary solely for capital appreciation, investment income, or both; the Company's investment objective is to provide Ordinary Shareholders with a total return, with an above average yield, primarily through investing in Latin American securities.
		(iii)	an entity measures and evaluates the performance of substantially all of its investments on a fair value basis; the Company has elected to measure and evaluate the performance of all of its investments on a fair value basis. The fair value basis is used to present the Company's performance in its communication with the market and the primary measurement attribute to evaluate performance of all of its investments and to make investment decisions.

		The Company meets the definition of an investment entity, and, therefore, all investments in subsidiaries are recorded at fair value through profit or loss.

		Accounting judgement - Fair value of the Subsidiary
		The Directors conclude that the net asset value of the wholly owned Subsidiary is considered to be its fair value for financial reporting purposes based on the Subsidiary's portfolio of investments being liquid and there being no significant restrictions on the transfer of funds to the parent company.

		New and amended standards and interpretations
		The Company applied, for the first time, certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2018. The nature and impact is described below:

		IFRS 9 'Financial Instruments'
		The Company adopted IFRS 9 'Financial Instruments' on 1 September 2018. IFRS 9 replaces IAS 39 'Financial Instruments: Recognition and Measurement' and introduces new requirements for classification and measurement, impairment and hedge accounting. IFRS 9 is not applicable to items that have already been derecognised at 31 August 2018.

		The Company classifies its financial assets as subsequently measured at amortised cost or measured at FVTPL on the basis of both:
		- the entity's business model for managing the financial assets; and
		- the contractual cash flow characteristics of the financial asset.

		Financial assets are measured at FVTPL if its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding or it is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell.

		Financial assets are measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

		(i) Classification and measurement
		The Company has assessed the classification of financial instruments as at the date of initial application and has applied such classification retrospectively.

		Under IAS 39, investments were designated at FVTPL as they were considered to form part of the group of financial assets that are managed and had their performance evaluated on a fair value basis. All financial assets previously held at fair value continue to be measured at fair value.

		Under IFRS 9, debt instruments are classified as FVTPL because they are held under a business model to manage them on a fair value basis for investment income and fair value gains. The business model, which is the determining feature, is such that the portfolio of investments is managed, and performance is evaluated, on a fair value basis. The Manager is also compensated based on the fair value of the Company's assets. Consequently, all investments are measured at FVTPL.

		Equity instruments are classified as FVTPL because cash flows resulting from such instruments do not represent payments of principal and interest on the principal outstanding, and therefore they fail the contractual cash flows test.

		Financial assets previously classified as loans and receivables under IAS 39 are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest and are therefore still measured at amortised cost under IFRS 9.
		The classification of financial liabilities under IFRS 9 remains broadly the same as under IAS 39. The main impact on measurement from the classification of liabilities under IFRS 9 relates to the element of gains or losses for financial liabilities designated as at FVTPL attributable to changes in credit risk. IFRS 9 requires that such element be recognised in other comprehensive income (OCI) unless this treatment creates or enlarges an accounting mismatch in profit or loss, in which case all gains and losses on that liability (including the effect) of changes in credit risk) should be presented in profit or loss. The Company has not designated any financial liabilities at FVTPL. Therefore, this requirement has not had an impact on the Company.

		(ii) Impairment
		Under IAS 39, the Company provided impairment on receivables only if there was objective evidence of impairment (incurred loss credit). IFRS 9 requires the Company to record expected credit losses ("ECLs") on all of its cash and receivables, measured at amortised cost, either on a twelve months or lifetime basis. Given the limited exposure of the Company to credit risk, this amendment has not had a material impact on the financial statements. The Company only holds receivables which have maturities of less than twelve months at amortised cost and therefore has adopted an approach similar to the simplified approach to ECLs.

		(iii) Hedge accounting
		The Company has not applied hedge accounting under IAS 39 nor will it apply hedge accounting under IFRS 9.

		Impact of adoption of IFRS 9
		The classification and measurement requirements of IFRS 9 have been adopted retrospectively as of the date of initial application on 1 September 2018, however, the Company has chosen to take advantage of the option not to restate comparatives. Therefore, the 2018 figures are presented and measured under IAS 39. The following table shows the original measurement categories in accordance with IAS 39 and the new measurement categories under IFRS 9 for the Company's financial assets and liabilities as at 1 September 2018.

		Financial assets
					IAS 39		IFRS 9
				IAS 39	measurement	IFRS 9	measurement
		1 September 2018		classification	£'000	classification	£'000
		Equity instruments		Designated at FVTPL	32,696	FVTPL	32,696
		Debt instruments		Designated at FVTPL	15,581	FVTPL	15,581
		Forward foreign currency contracts		Designated at FVTPL	96	FVTPL	96
		Trade and other receivables		Loans and receivables	442	Amortised cost	442
		Cash and cash equivalents		Loans and receivables	411	Amortised cost	411

		Financial liabilities
					IAS 39		IFRS 9
				IAS 39	measurement	IFRS 9	measurement
		1 September 2018		classification	£'000	classification	£'000
		Bank loans		Amortised cost	6,500	Amortised cost	6,500
		Forward foreign currency contracts		Designated at FVTPL	35	FVTPL	35
		Trade and other payables		Other financial liabilities	195	Amortised cost	195
		Deferred taxation on Mexican capital gains		Other financial liabilities	171	Amortised cost	171

		In line with the characteristics of the Company's financial instruments as well as its approach to their management, the Company neither revoked nor made any new designations on the date of initial application. IFRS 9 has not resulted in changes in the carrying amount of the Company's financial instruments due to changes in measurement categories. All financial assets that were classified as FVTPL under IAS 39 are still classified as FVTPL under IFRS 9. All financial assets that were classified as loans and receivables and measured at amortised cost continue to be so.

		IFRS 15 'Revenue from contracts with customers'
		The Company adopted IFRS 15 'Revenue from contracts with customers' on 1 September 2018. IFRS 15 replaces IAS 18 'Revenue' and establishes a five-step model to account for revenue arising from contracts with customers. In addition, guidance on interest and dividend income have been moved from IAS 18 to IFRS 9 without significant changes to the requirements. Therefore, there was no impact of adopting IFRS 15 for the Company.

		Future amendments to Standards and Interpretations
		At the date of authorisation of these financial statements, the following amendments to Standards and Interpretations were assessed to be relevant and are all effective for annual periods beginning on or after 1 January 2019:
		IFRIC 23 - Uncertainty over Income Tax Treatments - The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12.

		At the date of authorisation of these financial statements, the following Standards and Interpretations were assessed to be relevant and are effective for annual periods beginning on or after 1 January 2020:
		IAS 1 and IAS 8 Amendments - Definition of Material
		IAS 1, 8, 34, 37, 38 and IFRS 2, 3, 6, 14 - Amendment to references to the conceptual framework
		IFRS 3 Amendment - Definition of a Business
		IFRIC 12, 19, 20, 22 and SIC 32 - Amendment to references to the conceptual framework

		In addition, under the Annual Improvements to IFRSs 2015 - 2017 Cycle, a number of Standards are included for annual periods beginning on or after 1 January 2019.

		The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective and the Board does not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact the Company's financial results in the period of initial application although there may be revised presentations to the Financial Statements and additional disclosures.

	(b)	Income
		Dividend income from equity investments is recognised on the ex-dividend date. Dividend income from equity investments where no ex-dividend date is quoted are recognised when the Company's right to receive payment is established. Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised as income. Special dividends are recognised as capital or revenue according to their circumstances.

		The fixed returns on debt instruments are recognised using the time apportioned accruals basis.

	(c)	Expenses and interest payable
		All expenses, with the exception of interest, which is recognised using the effective interest method, are recognised on an accruals basis. Expenses are charged to the revenue column of the Statement of Comprehensive Income except as follows:
		- costs incidental to the issue of new shares as defined in the Prospectus are charged to capital;
		- expenses resulting from the acquisition or disposal of an investment are charged to the capital column of the Statement of Comprehensive Income; and
		- expenses are charged to the capital column of the Statement of Comprehensive Income where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. The Company charges 60% of investment management fees and finance costs to capital, in accordance with the Board's estimate of expected long-term return in the form of capital gains and income respectively from the investment portfolio of the Company.

	(d)	Taxation
		Profits arising in the Company for the year ended 31 August 2019 will be subject to Jersey income tax at the rate of 0% (2018 - 0%).

		Investment income and capital gains are subject to withholding tax deducted at the source of the income. The Company presents the withholding tax separately from the gross investment income in the Statement of Comprehensive Income under taxation.

		Deferred tax is recognised in respect of all temporary differences at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Balance Sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise, using enacted tax rates that are expected to apply at the date the deferred tax position is unwound.

	(e)	Investments held at fair value through profit or loss
		With effect from 1 September 2018, the Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments' which replaces IAS 39 'Financial Instruments: Recognition and Measurement' and was the policy effective prior to date that. As noted in 2(a) above IFRS 9 makes changes to classification and measurement of financial assets and introduces an 'expected credit loss' model for the impairment of financial assets.

		The adoption of IFRS 9 did not result in any change to the classification or measurement of financial instruments in either the current or prior year. The Company's investments remain classified as FVTPL. Under IAS 39 the Company carried its investments at FVTPL under a designation option; on adoption of IFRS 9, the investments are classified as FVTPL. As per the accounting policy disclosure in the 2018 annual report, under IAS 39 purchases of investments were recognised on a trade-date basis and designated upon initial recognition as held at fair value through profit or loss. All investments were considered to form part of a group of financial assets and subsequently measured on a fair value basis, in accordance with the Company's documented investment strategy, and information about the Company was provided internally on that basis. These investments also include inflation-linked bonds which were considered to be compound financial instruments. Proceeds were measured at fair value, which was regarded as the proceeds of sale less any transaction costs. Sales of investments were also recognised on a trade date basis.

		The Company classifies its investments based on their contractual cash flow characteristics and the Company's business model for managing the assets. The business model, which is the determining feature for debt instruments, is such that the portfolio of investments is managed, and performance is evaluated, on a fair value basis. The Manager is also compensated based on the fair value of the Company's assets. Equity instruments are classified as FVTPL because cash flows resulting from such instruments do not represent payments of principal and interest on the principal outstanding, and therefore they fail the contractual cash flows test. Consequently, all investments are measured at FVTPL.

		Purchases and sales of investments are recognised on a trade date basis. Proceeds are measured at fair value, which is regarded as the proceeds of sale less any transaction costs.

		Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as "Gains/(losses) on investments held at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase.

		Fair value measurement
		Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value is derived from unadjusted quoted bid prices in active markets, with the exception of inflation-linked bonds whose quoted bid prices are adjusted for indexation arising from the movement of the consumer prices index for the relevant country of issue of the bond. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

	(f)	Cash and cash equivalents
		Cash comprises cash at banks and short-term deposits.

	(g)	Other receivables
		Financial assets previously classified as loans and receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. As such they are measured at amortised cost. Other receivables do not carry any interest and they have been assessed for any expected credit losses over their lifetime due to their short-term nature.

	(h)	Other payables
		The classification of financial liabilities under IFRS 9 remains broadly the same as under IAS 39. Other payables are non interest bearing and are stated at amortised cost.

	(i)	Nature and purpose of reserves
		Capital reserve
		This reserve reflects any gains or losses on investments realised in the period along with any movement in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These include gains and losses from foreign currency exchange differences.

		Additionally, expenses, including finance costs, are charged to this reserve in accordance with Note 2(c) above.

		When the Company purchases its Ordinary shares to be held in treasury and for cancellation, the amount of the consideration paid, which includes directly attributable costs, is net of any tax effect, and is recognised as a deduction from the capital reserve. Should these shares be sold subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to or from the capital reserve.

		Revenue reserve
		This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income less dividends which have been paid.

	(j)	Foreign currency
		Monetary assets and liabilities denominated in foreign currencies are converted into sterling at the rate of exchange ruling at the reporting date. The financial statements are presented in sterling, which is the Company's functional and presentation currency. The Company's performance is evaluated and its liquidity is managed in sterling. Therefore sterling is considered as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Gains or losses arising from a change in exchange rates subsequent to the date of a transaction are included as a currency gain or loss in revenue or capital in the Statement of Comprehensive Income, depending on whether the gain or loss is of a revenue or capital nature.

	(k)	Bank loans
		The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments' which replaces IAS 39 'Financial Instruments: Recognition and Measurement'. Borrowings are measured at amortised cost using the effective interest rate method. No impact on the classification or measurement of borrowings has arisen due to the adoption of IFRS 9.

		Borrowings are stated at the amount of the net proceeds immediately after draw down plus cumulative finance costs less cumulative payments. The finance cost of borrowings is allocated to years over the term of the debt at a constant rate on the carrying amount and charged 40% to revenue and 60% to capital to reflect the Company's investment policy and prospective revenue and capital growth.

	(l)	Derivative financial instruments
		The Company may use forward foreign exchange contracts to manage currency risk arising from investment activity.

		Derivatives are measured at fair value calculated by reference to forward exchange rates for contracts with similar maturity profiles.

		Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income as revenue or capital depending on their nature.

	(m)	Dividends payable
		Interim dividends payable are recognised in the financial statements in the period in which they are paid.

3.	Segmental reporting
	The Company is engaged in a single segment of business. For management purposes, the Company is organised into one main operating segment, which invests in equity securities, debt instruments and related derivatives. All of the Company's activities are viewed on a portfolio wide basis and are interrelated, with each activity dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment.

	The following table analyses the Company's income, including income derived from the Subsidiary's investments, by geographical location. The basis for attributing the income is the place of incorporation of the instrument's investment, however, where the Company invests in ADR designated securities the underlying geographic location is considered to be the basis.

		2019	2018
		£'000	£'000
	Argentina	511	235
	Brazil	1,376	1,401
	Chile	57	61
	Columbia	213	266
	Mexico	691	607
	Peru	129	137
	Uruguay	249	386
	United Kingdom	4	2
		_______	_______
		3,230	3,095
		_______	_______

	The Company's income (including that generated by its Subsidiary's investments) comprises 28% (2018 - 28%) from equities and 72% (2018 - 72%) from fixed income securities.

		2019	2018
4.	Income	£'000	£'000
	Income from investments
	Dividend income	511	545
	Fixed interest income	1,534	1,409
	Income from Subsidiary	1,181	1,139
		_______	_______
		3,226	3,093
		_______	_______
	Other income
	Deposit interest	4	2
		_______	_______
		3,230	3,095
		_______	_______

	The Company owns 100% of the share capital of its Subsidiary. The Company receives income from its Subsidiary and there are no significant restrictions on the transfer of funds to or from the Subsidiary. During the year net revenue of £1,181,000 (2018 - £1,139,000) was generated by the Subsidiary.

5.	Investment management fee
	The Company had an agreement with APWML (ASCIL with effect from 30 September 2019) for the provision of management services during the year. Portfolio management services have been delegated by APWML to AAML during the year (ASCIL with effect from 30 September 2019).

	The management fee is based on an annual rate of 1% of the NAV of the Company, valued monthly. The agreement is terminable on one year's notice. The balance due to APWML (ASCIL with effect from 30 September 2019) at the year end was £93,000 (2018 - £85,000). Investment management fees are charged 40% to revenue and 60% to capital.

		2019	2018
6.	Other operating expenses	£'000	£'000
	Directors' fees	92	82
	Promotional activities	24	41
	Secretarial and administration fee	73	96
	Auditor's remuneration:
	- fees payable for the audit of the annual accounts	32	32
	Legal and advisory fees	12	34
	Custodian and overseas agents' charges	60	69
	Broker fees	30	30
	Stock exchange fees	20	20
	Registrar's fees	22	22
	Printing	18	18
	Other	28	29
		_______	_______
		411	473
		_______	_______

	The Company has an agreement with AAML for the provision of promotional activities. The total fees incurred under the agreement during the year were £24,000 (2018 - £41,000), of which £4,000 (2018 - £7,000) was due to AAML at the year end.

	The Company's management agreement with APWML (ASCIL with effect from 30 September 2019) provides for the provision of company secretarial and administration services. This agreement has been sub-delegated to Aberdeen Asset Managers Limited. APWML (ASCIL with effect from 30 September 2019) is entitled to an annual fee of £122,000 (2018 - £118,000) which increases annually in line with any increase in the UK Retail Price Index. A balance of £42,000 (2018 - £7,000) was due to APWML (ASCIL with effect from 30 September 2019) at the year end.

	The Manager has agreed to ensure that the Company's ongoing charges ratio ("OCR") will not exceed 2.0% when calculated annually as at 31 August. As the OCR exceeded 2.0% for the year ended 31 August 2019, the Manager has agreed to rebate £49,000 (2018 - £22,000) of the secretarial and administration fee in order to bring the OCR down to 2.0%.

		2019		2018
		Revenue	Capital	Total	Revenue	Capital	Total
7.	Taxation	£'000	£'000	£'000	£'000	£'000	£'000
	Analysis of charge for the year
	Overseas tax suffered	32	-	32	45	-	45
	Total current tax charge for the year	32	-	32	45	-	45
	Deferred tax liability on Mexican capital gains	-	(35)	(35)	-	171	171
		_______	______	______	______	______	______
	Total tax charge for the year	32	(35)	(3)	45	171	216
		_______	______	______	______	______	______

	The Company has provided for a deferred tax liability on Mexican capital gains at 31 August 2019 of £136,000 (2018 - £171,000).

		2019	2018
8.	Dividends on equity shares	£'000	£'000
	Distributions to equity holders in the period:
	Fourth interim dividend for 2018 - 0.875p (2017 - 0.875p) per Ordinary share	526	543
	First interim dividend for 2019 - 0.875p (2018 - 0.875p) per Ordinary share	521	540
	Second interim dividend for 2019 - 0.875p (2018 - 0.875p) per Ordinary share	514	531
	Third interim dividend for 2019 - 0.875p (2018 - 0.875p) per Ordinary share	510	529
		_______	______
		2,071	2,143
		_______	______

	The fourth interim dividend for the year of 0.875p per Ordinary share has not been included as a liability in these financial statements as it was announced and paid after 31 August 2019.

9.	Earnings per Ordinary share
	The basic earnings or loss per Ordinary share is based on the profit for the year of £8,986,000 (2018 loss - £10,295,000) and on 59,116,420 (2018 - 61,152,947) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.

	The basic earnings per Ordinary share detailed above can be further analysed between revenue return and capital return as follows:

		2019			2018
	Basic	Revenue	Capital	Total	Revenue	Capital	Total
	Profit/(loss) (£'000)	2,525	6,461	8,986	2,313	(12,608)	(10,295)
	Weighted average number of Ordinary shares in issue ('000)			59,116			61,153
	Return per Ordinary share (pence)	4.27	10.93	15.20	3.78	(20.62)	(16.84)

			Year ended			Year ended
			31 August 2019			31 August 2018
			Quoted bonds	Investment		Quoted bonds		Investment
10.	(a)	Investments held at fair	& Equities	in Subsidiary	Total	& Equities		in Subsidiary		Total
		value through profit or loss	£'000	£'000	£'000	£'000		£'000		£'000
		Opening book cost	32,470	15,300	47,770	33,535		17,141		50,676
		Opening investment holdings fair value gains/(losses)	(2,097)	2,604	507	2,968		8,177		11,145
			_______	______	_____	_____		______		_____
		Opening valuation	30,373	17,904	48,277	36,503		25,318		61,821
		Movements in the year:
		Purchases	4,959	-	4,959	7,158		-		7,158
		Sales proceeds	(7,643)	-	(7,643)	(7,957)		-		(7,957)
		Payments to/(receipts from) Subsidiary by Company	-	778	778	-		(651)		(651)
		Realised losses on financial assets held at fair value through profit or loss	(2,939)	-	(2,939)	(11,777)		-		(11,777)
		(Decrease)/increase in investment holdings fair value gains/(losses)	3,722	6,099	9,821	6,446		(6,712)		(266)
		Net income generated in Subsidiary	-	1,181	1,181	-		1,139		1,139
		Cash transfer from Subsidiary to Parent (Income from Subsidiary)	-	(1,107)	(1,107)	-		(1,190)		(1,190)
			_______	______	_____	_____		______		_____
		Closing valuation	28,472	24,855	53,327	30,373		17,904		48,277
			_______	______	_____	_____		______		_____

			£'000	£'000	£'000	£'000		£'000		£'000
		Closing book cost	27,606	14,971	42,577	32,470		15,300		47,770
		Closing investment holdings fair value gains	866	8,703	9,569	(2,097)		1,465		(632)
			_______	______	_____	_____		______		_____
		Net income generated in Subsidiary	-	1,181	1,181	-		1,139		1,139
			_______	______	_____	_____		______		_____
		Closing valuation	28,472	24,855	53,327	30,373		17,904		48,277
			_______	______	_____	_____		______		_____

	(b)	Investment in Subsidiary
		The Company holds 100% of the share capital of its Subsidiary. The Company meets the definition of an investment entity, therefore it does not consolidate its Subsidiary but recognises it as an investment at fair value through profit or loss. The fair value of the Subsidiary is based on its net assets which comprises investments held at fair value, cash, income receivable and other receivables/payables. The Company receives income from its Subsidiary and there are no significant restrictions on the transfer of funds to or from the Subsidiary. During the year the Company made a net transfer to the Subsidiary of £778,000 (2018 - receipt of £651,000).

	(c)	Transaction costs
		During the year, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. The total costs were as follows:

							Year ended		Year ended
							31 August 2019		31 August 2018
							£'000		£'000
		Purchases					8		5
		Sales					7		3
							_______		______
							15		8
							_______		______

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

11.	Creditors: amounts falling due within one year
	Bank loan
	The Company has a £8 million (2018 - £8 million) three year unsecured revolving multi-currency loan facility with Scotiabank (Ireland) Designated Activity Company expiring on 15 August 2020. At the year end £6,000,000 was drawn down (2018 - £6,500,000 ) under the facility, fixed to 16 September 2019 at an all-in rate of 1.785630%.

	At the date this Report was approved, £6,000,000 was drawn down under this facility and fixed to 18 November 2019 at an all-in rate of 1.78675%.

	Under the terms of the loan facility the Company's borrowings must not exceed 25% of adjusted NAV. Adjusted NAV is defined as total net assets less, inter alia, the aggregate of all excluded assets, excluded assets being, without double counting, the value of any unquoted assets, all investments issued by a single issuer in excess of 15% of total NAV, all Brazilian and Mexican bonds in excess of 30%, any MSCI Industry category in excess of 25% and cash, and any shortfall in cash, equities and investment Grade bonds below 70%.

	The Directors are of the opinion that there is no significant difference between the carrying value and fair value of the bank loan due to its short term nature.

		2019		2018
12.	Stated capital	Number	£'000	Number	£'000
	Issued and fully paid - Ordinary shares
	Balance brought forward	60,175,324	65,936	62,137,824	65,936
	Ordinary shares bought back in the period	(2,175,000)	-	(1,962,500)	-
		_________	______	________	_____
	Balance carried forward	58,000,324	65,936	60,175,324	65,936
		_________	______	________	_____

		2019		2018
		Number	£'000	Number	£'000
	Issued and fully paid - Treasury shares
	Balance brought forward	6,107,500	-	4,435,000	-
	Ordinary shares bought back in the period	-	-	1,672,500	-
		_________	______	________	_____
	Balance carried forward	6,107,500	-	6,107,500	-
		_________	______	________	_____
	Stated capital	64,107,824	65,936	66,282,824	65,936
		_______	______	_____	_____

	The Company's Ordinary shares have no par value. The number of Ordinary shares authorised for issue is unlimited.

	During the year the Company bought back 2,175,000 (2018 - 290,000) Ordinary shares at a cost of £1,485,000 (2018 - £188,000) for cancellation. No Ordinary shares (2018 - 1,672,500 at a cost of £1,219,000) were bought back for treasury.

	Shares held in treasury consisting of 6,107,500 (2018 - 6,107,500) Ordinary shares represent 9.53% (2018 - 9.21%) of the Company's total issued share capital at 31 August 2019.

	The Ordinary shares are entitled to all of the capital growth in the Company's assets and to all the income from the Company that is resolved to be distributed.

		2019	2018
13.	Capital reserve	£'000	£'000
	At beginning of year	(25,861)	(11,846)
	Net currency gains	45	44
	Forward foreign currency contracts losses	(108)	(42)
	Movement in investment holdings fair value gains/(losses)	9,821	(11,777)
	Loss on sales of investments	(2,939)	(266)
	Capitalised expenses	(358)	(567)
	Purchase of own shares	(1,485)	(1,407)
		_______	______
	At end of year	(20,885)	(25,861)
		_______	______

14.	Net asset value per Ordinary share
	Net asset value per Ordinary share is based on a net asset value of £47,755,000 (2018 - £42,325,000) and on 58,000,324 (2018 - 60,175,324) Ordinary shares, being the number of Ordinary shares issued and outstanding at the year end.

15.

Risk management policies and procedures

The Company, and through its Subsidiary, invests in equities and sovereign bonds for the long term so as to achieve its objective as stated above. In pursuing its investment objective, the Company is exposed to a variety of financial risks that could result in a reduction in the Company's net assets and a reduction in the revenue available for distribution by way of dividends. The Company entered into forward foreign currency contracts for the purpose of hedging short term foreign currency cash flows consistent with its investment policy. As at 31 August 2019 there were 12 open positions in derivatives transactions (2018 - 9) details of which can be found above. The Company has not entered into forward foreign currency contracts for the purpose of hedging fair values as at each reporting date.

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

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

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

(a)

Market risk

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

(b)

Market price risk

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

Management of the risk

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

Concentration of exposure to market price risk

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

Market price sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and the equity to an increase or decrease of 10% (2018 - 10%) in the fair value of the Company's and its Subsidiary's investments. This level of change is considered to be reasonably possible based on observation of past and current market conditions. The sensitivity analysis is based on the Company's and its Subsidiary's investments at each balance sheet date and the investment management fees for the year ended 31 August 2019, with all other variables held constant.

2019

2018

Increase

Decrease

Increase

Decrease

in fair

value

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(21)

(19)

Capital return

5,235

(5,235)

4,710

(4,710)

_______

______

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

5,214

(5,214)

4,691

(4,691)

_______

______

(c)

Currency risk

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

Management of the risk

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

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

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

Foreign currency exposure

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

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2019

£'000

Debtors (due from brokers, dividends and other receivables)

155

217

106

Cash

Creditors (due to brokers, accruals and other creditors)

(40)

(161)

_____

Total foreign currency exposure on net monetary items

116

106

Investments at fair value through profit or loss

877

28,601

2,207

2,597

11,488

1,883

3,116

2,025

_____

Total net foreign currency exposure

903

28,717

2,280

2,641

11,553

1,889

3,155

2,131

_____

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2018

£'000

Debtors (due from brokers, dividends and other receivables)

144

113

189

104

Cash

(2)

Creditors (due to brokers, accruals and other creditors)

(88)

(2)

(171)

_____

Total foreign currency exposure on net monetary items

111

102

Investments at fair value through profit or loss

1,469

21,375

2,097

3,882

11,792

1,787

3,826

1,900

_____

Total net foreign currency exposure

1,511

21,447

2,100

3,993

11,815

1,793

3,881

2,002

_____

Foreign currency sensitivity

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

It assumes the following changes in exchange rates:

£/Argentine Peso (ARS) +/-269% (2018 +/-246%) (maximum downside risk 100%)

£/Brazilian Real( BRL) +/-19% (2018 +/-4%)

£/Chilean Peso (CLP) +/-1% (2018 +/-17%)

£/Columbian Peso (COP) +/-8% (2018+/-17%)

£/Mexican Peso (MXN) +/-1% (2018 +/-4%)

£/Peruvian Nuevo Sol (PEN) +/-7% (2018 +/-14%)

£/Uruguayan Peso (UYU) +/-19% (2018+/-5%)

£/US Dollar (USD) +/-7% (2018 +/-15%)

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

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

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2019

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(26)

(29)

(4)

(2)

(7)

Capital return

(877)

(5,427)

(23)

(208)

(113)

(132)

(592)

(142)

______

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

(903)

(5,456)

(23)

(212)

(115)

(132)

(599)

(149)

______

_____

For 2018, if sterling had weakened against the currencies shown, this would have had the following effect, with a strengthening of sterling having an equal and opposite effect with the exception of the Argentine Peso which is capped at 100% on the downside amounting to £42,000 for revenue returns and £1,469,000 for capital returns but on the upside revenue returns would increase by £103,000 and capital returns by £3,614,000:

ARS

BRL

CLP

COP

MXN

PEN

UYU

USD

2018

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(42)

(6)

(19)

(8)

(1)

(3)

(16)

Capital return

(1,469)

(852)

(357)

(660)

(465)

(250)

(191)

(285)

______

_____

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

(1,511)

(858)

(357)

(679)

(473)

(251)

(194)

(301)

______

_____

Foreign exchange contracts

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

Unrealised

Local

gain/(loss)

Currency

31 August

Buy

Sell

Settlement

Amount

Contracted

2019

Date of contract

Currency

date

'000

rate

£'000

04 June 2019

GBP

MXN

12 September 2019

610

24.4922

(24)

04 June 2019

USD

GBP

12 September 2019

638

1.2184

05 July 2019

GBP

USD

10 October 2019

1,336

1.2199

(44)

05 July 2019

MXN

GBP

10 October 2019

1,887

24.6403

(24)

11 July 2019

GBP

USD

10 October 2019

456

1.2199

(15)

11 July 2019

USD

MXN

10 October 2019

1.2199

26 July 2019

GBP

USD

10 October 2019

105

1.2199

(2)

15 August 2019

COP

USD

21 November 2019

1,241

0.0002

15 August 2019

MXN

GBP

10 October 2019

24.6403

(2)

15 August 2019

USD

BRL

21 November 2019

683

1.2217

16 August 2019

USD

PEN

21 November 2019

1,853

1.2217

21 August 2019

USD

GBP

10 October 2019

1.2199

Unrealised

Local

gain/(loss)

Currency

31 August

Buy

Sell

Settlement

Amount

Contracted

2018

Date of contract

Currency

date

'000

rate

£'000

03 July 2018

GBP

USD

11 October 2018

1,495

1.3019

(26)

03 July 2018

MXN

GBP

11 October 2018

1,446

25.0479

10 July 2018

USD

GBP

11 October 2018

339

1.3019

11 July 2018

GBP

MXN

11 October 2018

25.0479

(1)

13 July 2018

MXN

GBP

11 October 2018

246

25.0479

13 August 2018

GBP

USD

11 October 2018

427

1.3019

16 August 2018

COP

USD

27 November 2018

205

1.3046

(2)

16 August 2018

USD

PEN

27 November 2018

1,806

1.3046

(6)

22 August 2018

USD

GBP

11 October 2018

1.3019

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

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

(d)

Interest rate risk

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

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

- the level of income receivable on cash deposits;

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

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

Management of the risk

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

Financial assets

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

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

Financial liabilities

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

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

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

Interest rate exposure

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

2019

2018

Within

one year

Total

one year

Total

£'000

Exposure to floating interest rates

Cash

459

411

Borrowings under loan facility

(6,000)

(6,500)

______

Total net exposure to interest rates

(5,541)

(6,089)

______

The Company does not have any fixed interest rate exposure to cash or bank borrowings at 31 August 2019 (2018 - nil). Interest receivable and finance costs are at the following rates:

- interest received on cash balances, or paid on bank overdrafts, is at a margin below LIBOR or its foreign currency equivalent (2018 - same).

- interest paid on borrowings under the loan facility was at a margin above LIBOR. The weighted average interest rate of these at 31 August 2019 was 1.819063% (2018 - 1.434264%).

Interest rate sensitivity

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

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

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

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

If interest rates had been 50 basis points higher or lower and all other variables were held constant, the Company's net interest for the year ended 31 August 2019 would decrease/increase by £28,000 (2018 - £30,000). This is attributable to the Company's exposure to interest rates on its floating rate cash balances and bank loan.

If interest rates had been 50 basis points higher and all other variables were held constant, a change in fair value of the Company's fixed income financial assets at the year ended 31 August 2019 of £21,590,000 (2018 - £22,698,000) would result in a decrease of £617,000 (2018 - £649,000). If interest rates had been 50 basis points lower and all other variables were held constant, a change in fair value of the Company's fixed rate financial assets at the year ended 31 August 2019 would result in an increase of £648,000 (2018 - £679,000).

(e)

Liquidity risk

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

Management of the risk

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

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

Liquidity risk exposure

The remaining contractual maturities of the financial liabilities at 31 August 2019, based on the earliest date on which payment can be required are as follows (borrowings under the loan facility are subject to a resettting of the interest rate upon maturity):

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2019

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(6,005)

Amounts due on forward foreign currency contracts

(111)

Amounts due to brokers and accruals

(233)

______

(6,349)

______

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2018

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(6,505)

Amounts due on forward foreign currency contracts

(35)

Amounts due to brokers and accruals

(361)

______

(6,901)

______

(f)

Credit risk

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

The Company's only financial assets subject to the expected credit loss model within IFRS 9 are cash and short-term other receivables. At 31 August 2019, the total of cash and short-term other receivables was £851,000 (2018 - £853,000).

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

Management of the risk

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

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

Credit risk exposure

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

2019

2018

Balance

Maximum

Balance

Maximum

Sheet

exposure

Sheet

exposure

£'000

Non-current assets

Bonds at fair value through profit or loss{A}

21,590

22,698

Current assets

Cash

459

411

Other receivables

392

442

Forward foreign currency contracts

______

22,503

23,647

______

{A} Includes quoted bonds held by the Company and its Subsidiary on an aggregated basis. For more detail on these bonds please see the Annual Report.

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

Credit ratings

The table below provides a credit rating profile using Standard and Poors credit ratings for the bond portfolio at 31 August 2019 and 31 August 2018:

2019

2018

£'000

A-

7,632

7,477

BB-

8,195

7,116

BBB

2,661

2,460

BBB-

2,598

3,554

Non-rated

504

2,091

______

21,590

22,698

______

At 31 August 2019 the Standard and Poors credit ratings agency did not provide a rating for the Argentinian bond or an Uruguayan corporate bond held by the Company and were accordingly categorised as non-rated in the table above. It is however noted that Moodys credit ratings agency do provide a BBB-rating for the Uruguayan bond valued at £454,000 (2018 - £1,367,000).

At 31 August 2019 the Company held cash of £459,000 (2018 - £411,000) with BNP Paribas SA, which has a credit rating of A-1 with Standard and Poors. No ECL adjustments have been made since the risk is considered negligible.

16.	Capital management policies and procedures
	The Company's capital management objectives are:
	- to ensure that it will be able to continue as a going concern; and
	- to maximise the income and capital return to its Equity Shareholders through equity capital and debt.

	The Company's capital at 31 August 2019 comprises its equity capital and reserves that are shown in the Balance Sheet at a total of £47,755,000 (2018 - £42,325,000). As at 31 August 2019 gross debt as a percentage of net assets stood at 12.6% (2018 - 15.4%).

	The Board, with the assistance of Aberdeen Standard Investments, monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes:
	- the planned level of gearing, which takes account of Aberdeen Standard Investment's views on the market;
	- the need to buy back Ordinary shares for cancellation or treasury, which takes account of the difference between the net asset value per share and the share price (i.e. the level of share price discount);
	- the need for new issues of Ordinary shares, including issues from treasury; and
	- the extent to which distributions from reserves may be made.

	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.

17.	Related party transactions
	Directors' interests
	Fees payable during the year to the Directors are disclosed within the Directors' Remuneration Report in the Annual Report and in note 6.

	Transactions with the Manager
	Under the terms of the management agreement with the Company, APWML (ASCIL with effect from 30 September 2019) is entitled to receive both a management fee and a company secretarial and administration fee. Details of the management fee arrangements are presented in note 5 above.The company secretarial and administration fee is based on an annual amount of £122,000 (2018 - £118,000), increasing annually in line with any increases in the UK Retail Prices Index, payable quarterly in arrears. During the year £73,000 (2018 - £96,000) was payable after the deduction of a rebate £49,000 (2018 - £22,000) to bring the OCR down to 2.0%, with £42,000 (2018 - £7,000) outstanding at the period end.

	The Manager has agreed to ensure that the Company's OCR will not exceed 2.0% when calculated annually as at 31 August. Until further notice, to the extent that the OCR ever exceeds 2.0% the Manager will rebate part of its fees in order to bring that ratio down to 2.0%.

	Subsequent to the year end, there was a change to the Manager entity and Company Secretary. Further details are provided within the Chairman's Statement.

	Subsidiary
	The Company owns 100% of the share capital of the Subsidiary. Details of the movements in the investment are presented in note 10 above.

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

19.	Fair value hierarchy
	IFRS 13 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

	The Company has classified fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

	Level 1:		quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2		inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
	Level 3:		inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	Financial assets and financial liabilities are either carried in the balance sheet at their fair value (investments and forward currency contracts) or the balance sheet amount is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and amounts due under the loan facility).

	The financial assets and liabilities measured at fair value in the Balance Sheet grouped into the fair value hierarchy at 31 August 2019 are as follows:

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

					Level 1	Level 2	Total
	As at 31 August 2018			Note	£'000	£'000	£'000
	Financial assets/(liabilities) at fair value through profit or loss
	Quoted equities			a)	14,792	-	14,792
	Quoted bonds			b)	-	15,581	15,581
	Investment in Subsidiary			c)	-	17,904	17,904
					______	______	______
					14,792	33,485	48,277
	Forward foreign currency contracts			d)	-	96	96
	Forward foreign currency contracts			d)	-	(35)	(35)
					______	______	______
	Net fair value				14,792	33,546	48,338
					______	______	______

	There were no assets for which significant unobservable inputs (Level 3) were used in determining fair value during the years ended 31 August 2019 and 31 August 2018. For the years ended 31 August 2019 and 31 August 2018 there were no transfers between any levels.

	a)	Quoted equities
		The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.
	b)	Quoted bonds
		The fair value of Level 2 quoted bonds has been determined by reference to their quoted bid prices within markets not considered to be active. Index linked bonds are adjusted for indexation arising from the movement of the consumer prices index within the country of their incorporation.
	c)	Investment in Subsidiary
		The Company's investment in its Subsidiary is categorised in Fair Value Level 2 as its fair value is determined by reference to its unadjusted net asset value which is not a quoted price but is derived predominantly from quoted investments. The net asset value of the Subsidiary is unadjusted as it has no restrictions on distributions.
	d)	Forward foreign currency contracts
		The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

20.	Analysis of changes in financing liabilities during the year
	The following tables shows the movements of financing liabilities in the Statement of Financial Position during the years ended 31 August 2019 and 31 August 2018 :

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

		At		Other	At
		1 September 2017	Cash flows	movements{A}	31 August 2018
		£000	£000	£000	£000
	Financing activities
	Loan	(6,500)	-	-	(6,500)
	Amounts due relating to repurchase of own shares	(20)	1,415	(1,407)	(12)
		______	______	______	______
	Total	(6,520)	1,415	(1,407)	(6,512)
		______	______	______	______
	{A} The other movements column represents the cost of repurchasing own shares as disclosed in the Statement of Changes in Equity.

21.	Subsequent events
	Subsequent to the Balance Sheet date, the Company purchased a further 290,000 Ordinary shares for cancellation at a total cost of £204,000.

ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes IFRS and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.

Total return
Total return is considered to be an alternative performance measure. NAV and share price total returns show how the NAV and share price have performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.

The tables below provide information relating to the NAVs and share prices of the Company on the dividend reinvestment dates during the years ended 31 August 2019 and 31 August 2018.

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

	Dividend			Share
2018	rate		NAV	price
31 August 2017	N/A		90.40p	78.38p
5 October 2017	0.875p		90.10p	78.00p
28 February 2018	0.875p		80.43p	72.38p
26 April 2018	0.875p		80.36p	69.20p
12 July 2018	0.875p		73.35p	62.40p
31 August 2018	N/A		70.34p	60.80p
Total return			-18.8%	-18.5%

Discount to net asset value per Ordinary share
The discount is the amount by which the share price of 69.20p (2018 - 60.80p) is lower than the net asset value per Ordinary share of 82.34p (2018 - 70.34p), expressed as a percentage of the net asset value per share per Ordinary share.

Dividend cover
Revenue return per Ordinary share of 4.27p (2018 - 3.78p) divided by dividends per Ordinary share of 3.50p (2018 - 3.50p) expressed as a ratio.

Net gearing
Net gearing measures the total borrowings of £6,000,000 (31 August 2018 - £6,500,000) less cash and cash equivalents of £535,000 (31 August 2018 - £502,000) divided by shareholders' funds of £47,755,000 (31 August 2018 - £42,235,000), expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to brokers of £28,000 (2018 - £12,000) and amounts due from brokers of £104,000 (2018 - £103,000) at the year end as well as cash and cash equivalents.

Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses and expressed as a percentage of the average net asset values with debt at fair value throughout the year.

		2019		2018
Investment management fees (£'000)		533		555
Administrative expenses (£'000)		411		473
Less: non-recurring charges (£'000)		(10)		(34)
		_______		_______
Ongoing charges (£'000)		934		994
		_______		_______
Average net assets (£'000)		46,712		49,654
		_______		_______
Ongoing charges ratio		2.00%		2.00%
		_______		_______

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

The Annual General Meeting will be held at 10.00 a.m. on 11 December 2019 at 1^st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB.

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

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 August 2019 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The Annual Report and financial statements will be delivered to the Jersey Financial Services Commission in due course.

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

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

By Order of the Board

Aberdeen Standard Capital International Limited

Secretary

6 November 2019

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

FR UGGWPGUPBPWQ

Companies

abrdn Latin American Income Fund Limited NPV (ALAI)

Full Archive

UK 100

Latest directors dealings

11 hours ago Tullow Oil
11 hours ago Tullow Oil
12 hours ago Mortgage Advice Bureau (Holdings)
13 hours ago Man Group
15 hours ago Windward Ltd. (DI)

All directors dealings today