LONDON (Alliance News) - Aberdeen Latin American Income Fund Ltd, which has an objective of generating a total return, with an above-average yield, by investing in Latin American securities, said most of its first half was hit by fears that China's economic slowdown would spread and by "sluggish" commodity prices.
Aberdeen Latin American Income Fund's net asset value total return - its capital return with dividends reinvested - fell by 0.2% in sterling terms over the course of the six months ended February 29. Its benchmark index - the Composite MSCI EM Latin American 10/40 Index/JP Morgan GBI-EM Global Diversified Index (Latin America carve out)(sterling adjusted) - had a total return of 0.9% in the same period.
The trust's shares lost 10.2% of their value in the six months to February 29, ending the half at 47.13p, with the discount at which they traded to net asset value per share widening to 10.9% from 4.8% in the six months. The shares have rallied since then and were quoted at 54.26 pence on Monday morning, down 2.0% on the day.
"Latin American economies are not out of the woods yet. Commodity exporters are still adjusting to China's slowdown after years of double-digit growth that fuelled a seemingly insatiable appetite. Meanwhile, oil and iron ore prices seem to have stabilised somewhat, although there is still no clear indication of the supply glut easing anytime soon," Chairman Richard Prosser said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.