Aberdeen Latin American Income has published its interim results for the six months ended 28 February 2014. Its net asset value fell by 9.1% in total return terms, underperforming its benchmark which fell by 7.2%. (The benchmark is a composite of the MSCI Emerging Markets Latin American 10/40 Index and the JP Morgan Global Bond Index – Latin American carve out).
Aberdeen Latin American Income’s discount widened over the period and the total return on the share price was -14.0%.
The Chairman says that the prospect of the unwinding of quantitative easing in developed economies triggered a flood of capital out of emerging markets, weakening their currencies. The manager attributes the underperformance to stock selection. Aberdeen Latin American Income will still look to pay a 4.25p dividend for the current financial year.