Annual Financial Report

RNS Number : 4522E

Aberdeen Latin American Inc Fd Ltd

04 November 2015

ABERDEEN LATIN AMERICAN INCOME FUND LIMITED

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2015

STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS

The Company

Aberdeen Latin American Income Fund Limited (the "Company") is a Jersey-incorporated, closed-ended investment company and its shares are traded on the London Stock Exchange ("LSE"). The Company is a member of the Association of Investment Companies.

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.

Manager

The Company is 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. The investment management of the Company has been delegated by Aberdeen Private Wealth Management Limited to Aberdeen Asset Managers Limited ("AAM"). AAM is based in London and is also a wholly-owned subsidiary of Aberdeen Asset Management PLC (the "Aberdeen Group"), a publicly-quoted company on the LSE.

References throughout this document to Aberdeen refer to both APWML and AAM and their responsibilities as Manager and Investment Manager to the Company.

Website

Up-to-date information can be found on the Company's website - www.latamincome.co.uk

Financial Highlights

	2015	2014
Ordinary share price total return	-32.3%	+1.4%
Net asset value total return	-36.8%	+10.4%
Benchmark total return	-32.2%	+12.7%
Earnings per Ordinary share (revenue)	3.85p	4.11p
Dividends per Ordinary share	4.25p	4.25p
Discount to net asset value per Ordinary share	4.8%	10.6%

Total return represents the capital return plus dividends reinvested.
Source: Aberdeen, Morningstar, Russell Mellon, Lipper & JPMorgan

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Introduction

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. The Company's overall objective and financial highlights are shown above. A review of the Company's activities is given in "Business Model-Investment Policy and Approach" below, the Chairman's Statement and in the Investment Manager's Review which includes its principal activities, likely future developments of the business and details of any changes in the issued Ordinary share capital.

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 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)

At each Board meeting, Aberdeen circulates detailed performance attribution for the Directors to consider in order to assess the Company's progress in achieving its objectives. Below are the main KPIs which have been identified by the Board for determining the progress of the Company and a record of these measures is disclosed under Financial Highlights below:

- Net Asset Value Total Return Performance versus Benchmark Total Return;

- Ordinary Share Price Total Return Performance;

- Share Price Discount/Premium to Net Asset Value per Ordinary Share; and

- Dividends per Ordinary Share.

Further commentary on the Company's performance is contained in the Chairman's Statement and Investment Manager's Review.

Business Model-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 other international stock exchanges;

- companies listed on other 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.

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.

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. Aberdeen employs a risk management process to oversee and manage the Company's exposure to derivatives. Aberdeen 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. Aberdeen 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. 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 "Business Model-Investment Policy and Approach" and "Investment Restrictions" will only be applied at the time of the relevant acquisition, trade or borrowing. No more than 15% of the Company's gross assets will be invested in any 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 Aberdeen 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.

Changes to Presentation of Financial Statements

The Annual Report and financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS) which require management to exercise its judgement in the process of applying the accounting policies. One of the mandated 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 amendments are applicable for the first time this year and require entities that meet the definition of an investment entity to fair value certain subsidiaries through profit or loss in accordance with IAS 39 Financial Instruments: Recognition and Measurement, rather than consolidate their results. Following a review by the Board and Manager, it has been deemed that the Company meets the definition of an investment entity, and, therefore, all investments are now recognised at fair value through profit or loss. This has resulted in a change in the treatment of the Company's investment in Aberdeen Latin American Income Fund LLC (the "Subsidiary"), which was previously consolidated. The change in accounting policy resulted, in aggregate, in no adjustment to the net assets attributable to holders of the Company's shares and has been applied retrospectively to the 2013 and 2014 comparative figures which have been restated.

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 identified the principal 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 at its annual audit committee and a summary of the principal risks are set out below.

Description / Mitigating Action

Investment strategy and objectives - the setting of an unattractive strategic proposition to the market 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 board 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 and 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 listing rules, disclosure 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 16 to the financial statements. The Board relies upon Aberdeen to ensure the Company's compliance with applicable regulations and from time to time employs external advisers to advise on specific concerns.

Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of AAM) 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 Statement of Corporate Governance in the Annual Report.

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 16 to the financial statements.

Board Diversity

The Board recognises the importance of a range of skilled, experienced individuals with the right knowledge in order to allow the Board to fulfill its obligations. At 31 August 2015, there were five male Directors. The Company has no employees. The Board's statement on diversity is set out in the Annual Report.

Environmental, Social and Human Rights Issues

The Company has no employees as it is managed by APWML 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 in the Annual Report.

Global Greenhouse Gas Emissions

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.

Richard Prosser

Chairman

3 November 2015

STRATEGIC REPORT - CHAIRMAN'S STATEMENT

Overview

It was a difficult year for emerging markets, and Latin America in particular. Currencies and shares suffered sharp losses amid global sell-offs as fear dominated sentiment, while prices of commodities, especially oil, remained weak. At the same time, investors were cautious as they continued to try to second-guess the timing of a US interest rate hike. At the country level, a combination of plunging currencies, political uncertainty and slowing growth hurt investors' risk appetite.

A slowdown in China's growth fanned concerns for export-reliant Latin American economies, which were already facing lower revenues from tumbling commodity prices and weak currencies. Despite that, Chile was relatively resilient, posting modest GDP growth during the period on the back of gains in the services sector. Mexico also posted better-than-expected GDP numbers, shrugging off the effects of lower oil prices and disappointing growth in the US, its largest trading partner, early this year. The Chilean and Mexican stockmarkets were among the better performers in the region.

On the other hand, Brazil disappointed. Moody's lowered the country's credit rating to just one notch above junk status, following a revision of its fiscal primary surplus goal and deepening recession in the second quarter and in September S&P downgraded its Brazil rating to junk status. The Brazilian real was among the worst regional performers over the review period, losing over one-third of its value against the dollar. On the political front, Dilma Rousseff secured a second term in the presidential elections, but her sliding popularity culminated in massive protests demanding her resignation. With the ongoing corruption investigation involving state oil giant Petrobras, the unpopular president might find it an uphill task to push through austerity measures to reduce the budget deficit. Despite growth concerns, the central bank continued to raise interest rates, in the hope of taming rising inflation.

Amid the oil price slump, oil exporters adjusted to the prospect of weaker revenues: Mexico cut its 2015 budget by almost 3%, lowered its GDP forecast and cancelled a high-speed train project. Colombia postponed over US$2 billion in government spending. Currency depreciation pushed inflation above central banks' targets across the region, with the exception of Mexico, where earlier structural reforms led to increased market competition and subsiding inflation.

Results and Dividends

I am disappointed to report that your Company's net asset value ("NAV") total return was -36.8% for the year ended 31 August 2015, trailing the 32.2% fall in our composite benchmark. On a total return basis the Ordinary share price fell by 32.3% to 52.5p.

In the Annual Report Shareholders will see the weakness of Latin American currencies over the year relative to sterling, which severely impacted both our capital and revenue returns as we report in sterling, together with the negative country performance. The Brazilian Real plunged 33.7% against sterling with the Colombian Peso falling 33.0% and the Mexican Peso down 15.9%.

In the equity market the weakness in Brazilian stocks, where we held up to 60% of our total equity portfolio, saw the MSCI Country Index (in this case the 10/40 Index in sterling terms) fall by 46.7% with Mexico down 18.5%.

As I indicated in the Company's Half Yearly Report for the six months ended 28 February 2015, weak markets and global uncertainty meant that the Company's annual dividend target of 4.25p per Ordinary share was kept under close review by the Board. The continuing weakness of Latin American currencies in relation to sterling and the challenging economic environment have adversely impacted the Company's earnings and, as a result, dividends paid in respect of the year ended 31 August 2015 were not covered by earnings. However, the Board recognises the importance of predictable income to investors, particularly in the current low interest rate environment and concluded that the fourth interim dividend should be maintained at 1.25p. This will require the use of the Company's remaining revenue reserve and also a small payment of approximately 0.22p from capital.

Rebasing the Level of Future Dividends

The Company has maintained the current level of dividend payments at 4.25p per Ordinary share since its launch in July 2010. At a time when the yield on cash and gilts is so low, the Directors believe that the attraction of income and income growth is still very important to Ordinary Shareholders and the market generally. Having regard to the challenging economic environment in the Latin American region, and indeed globally, and following discussions with the Investment Manager, the Board concluded that maintaining dividends at the current level was unlikely in the short to medium term and the weak currency environment exacerbates this. Furthermore, the Board felt that seeking to maintain a high level of dividends was inhibiting the Investment Manager from conviction investing which is detrimental to achieving future capital growth and, accordingly, to the total return to Shareholders. The Directors believe that rebasing future Ordinary dividend payments to a level that:

- is sustainable and offers the prospect of longer term growth;

- remains attractive within the emerging markets closed-end funds sector;

- increases the Company's investment flexibility to achieve capital growth through increasing the weighting to equities when deemed appropriate; and

- as a result, offers Shareholders the prospect of an enhanced total return;

should be attractive to Shareholders as a whole and will enhance the Company's appeal to investors generally.

The Board decided, therefore, to rebase the annual dividend to 3.5p per Ordinary share for the financial year commencing 1 September 2015. Accordingly, in the absence of unforeseen circumstances, it is the Board's intention to declare first and second interim dividends in respect of the financial year ending 31 August 2016 each of 0.875p per Ordinary share.

The Board and the Investment Manager expect that, having rebased the level of dividends paid, the Company will be able to again grow the level of dividends once there is evidence of strengthening currencies and economic stability returning to the region.

As part of the dividend rebasing exercise, Aberdeen agreed to waive its company secretarial and administration fee of £112,000, equating to 0.17p per share, for the year ended 31 August 2015.

Portfolio

During the year the portfolio allocation between equities and bonds moved from an opening position of 59% equities and 41% bonds to 39% equities and 61% bonds at the year end as the Investment Manager sought to exploit market opportunities. The Board currently expects to maintain this allocation in the near term although the allocation to equities is likely to increase over time as the Company's revenue streams stabilise and economic conditions improve.

Share Capital Management

During the year the Company purchased for treasury 560,000 Ordinary shares at discounts to the exclusive of income NAV per share ranging from approximately 6% to 11%. Market volatility has, at times, continued to affect our ability to have a meaningful impact on the discount through the purchase of the Ordinary shares in the market although over this period the discount to NAV has contracted from 10.6% to 4.8%. It remains the Board's intention, in more normal market conditions, to try to maintain a discount of around 5% over the longer term. Subsequent to the year end a further 100,000 Ordinary shares have been purchased for treasury. The Board will continue to make limited 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 9.3%.

Gearing

During the year the Company reduced the level of drawings under the Company's £10 million facility with Scotiabank Europe PLC to $13.3 million. Subsequent to the period end the loan was further reduced to $10.0 million. The Board will continue to monitor the level of gearing in the light of market conditions.

Annual General Meeting

The AGM will be held at 10.00 a.m. on 10 December 2015 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 United Kingdom Listing Authority's 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.

Subscription Shares

Subscription Shareholders have a final opportunity to exercise their right to subscribe for Ordinary shares in the 28 days prior to 31 December 2015. A reminder letter accompanies this Annual Report. Rights attaching to these Subscription shares will expire on 31 December 2015.

The Directors expect that, at the final subscription date, the price payable on the exercise of the subscription rights conferred by a Subscription share (being 120p) will continue to be substantially higher than the market price of an Ordinary share (47.875p at the time of writing). Accordingly, the Directors who hold Subscription shares will not be exercising their subscription rights.

Outlook

Market volatility is likely to persist in the near term. The ripple effects from China's growth slowdown, which appears to be the new normal, are affecting the global economy. Regional economies could remain sluggish amid weak commodity prices. Meanwhile, the US Federal Reserve appears to be getting closer to normalising its monetary policy, which could trigger fund outflows from Latin America if the dollar strengthens further.

At the country level, there are also issues to contend with. In Brazil, the credit downgrade is likely to increase both the costs of borrowing and repaying dollar-denominated debts. Besides a shrinking economy, the government faces the twin threats of high unemployment and rising inflation. Meanwhile, corruption allegations remain a common fixture in Latin American economies. In Mexico, while a government investigation has cleared the president of any wrongdoing in a property scandal, the handling of the case has dented the administration's credibility and investor confidence. Chile, too, was tainted by corruption allegations.

But there is also room for optimism: In Brazil, the probe into guilty parties involved in the Petrobras scandal shows that its democratic institutions are robust and its judiciary increasingly independent. Policymakers in Mexico and Chile are also pushing through anti-corruption reforms. These reforms should be a cause for hope and should underpin long-term growth prospects.

While the credit downgrade does not bode well for Brazil, its highly-rated finance minister, Joaquim Levy, who just took office this year, seems determined to steer the country out of its economic troubles with a series of reforms and overhauls.

Corporate earnings growth in the region is likely to remain muted in the near term, but your Manager's focus on investing only in well-run companies should help weather these challenging times. Amid the recent sell-offs, valuations have become more attractive and your Manager sees investment opportunities to add to quality holdings with solid fundamentals, which should outperform in an eventual rebound.

Directorate

Finally, Jeremy Arnold has indicated that he intends to retire from the Board with effect from the close of business at the Annual General Meeting to be held on 10 December 2015. I would like to join with my fellow Directors in sincerely thanking Jeremy for his significant contribution to the Company as a Director and as Chairman of the Audit Committee from the launch of the Company in 2010. George Baird has agreed to take over as Audit Committee Chairman from 10 December 2015.

In light of the Company's size and our on-going review of costs, we will not be replacing Jeremy this year but will continue with four Directors for the immediate future.

Richard Prosser

Chairman

3 November 2015

STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW

Performance Commentary

Shareholders will be only too aware that the twelve months to 31 August 2015 proved a very difficult year for Latin American markets. The region, and indeed the broader emerging market asset class, was battered by continued investment outflows and negative sentiment on the back of lacklustre economic data. The NAV total return in sterling terms fell by a disappointing 36.8% whilst our composite benchmark dropped 32.2% over the same period.

Notwithstanding the fact that we believe our equity portfolio holdings to now be relatively well placed to weather any further volatility in markets, we saw the MSCI EM Latin America 10/40 Index falling by 37.7% in sterling terms over the year.

The bond portfolio fell as the region's currencies depreciated albeit the coupon return offset the rise in yields. The bond constituent benchmark JP Morgan GBI-EM Global Diversified Latin America Index declined by 23.84%.

In Mexico, airport operators Asur and OMA were among the best performers in the portfolio, underpinned by impressive growth in traffic and commercial revenues. The Cancun airport, a major tourist destination, remained central to Asur's success, accounting for over 70% of its traffic. OMA saw growth in international passenger numbers due to new route launches, and announced the opening of a hotel at its main concession, Monterrey airport. We believe that significant opportunity remains in the sector, as Mexico's growing middle class increasingly chooses to travel by air instead of bus. Elsewhere, beverage and retail company FEMSA did well, despite the depreciation of the Mexican peso. Its retail arm Femsa Comercio achieved its highest same-store sales growth since 2012, outweighing a weaker showing from its Coca-Cola bottling arm KOF, which suffered from ongoing challenges in Venezuela. The Company acquired further pharmaceutical assets in the Andean region, in a drive to broaden its drugstore footprint.

Several Chilean holdings also contributed to relative performance. Coca-Cola bottler Andina was buoyed by resilient volumes and better profitability on the back of its cost-cutting efforts. Lender Santander Chile benefited from healthy loan growth and improved asset quality. Its margins were also helped by higher-than-expected inflation in Chile, given its exposure to inflation-linked assets. Mall operator Parque Arauco maintained high occupancy rates, while continuing to expand in the region. In Brazil, Lojas Renner posted consistently good results, maintaining robust sales growth despite the weak economic backdrop. The retailer has been winning market share and focusing on operational improvements.

Conversely, Vale and Banco Bradesco were among the key detractors from performance. Vale was hamstrung by lower iron ore prices and concerns over Chinese growth; however, the miner has been driving down costs, disposing of non-core assets and eking out efficiency gains. Bradesco was weighed down by an impending tax hike on financial institutions and concerns that the weak macroeconomic environment would drag on its asset quality. Despite this, the lender has posted solid results, with earnings underpinned by growth in interest income. Management is confident that the recent acquisition of HSBC's Brazilian assets will be integrated smoothly with its existing businesses, resulting in increased Shareholder value.

Peruvian infrastructure company Grana y Montero also lagged. Its core engineering and construction business was particularly weak, owing to cost overruns and its significant exposure to oil prices. As miners slashed investment spending, concerns about Grana y Montero's future project pipeline weighed on its share price. Separately, speculation that MSCI may reclassify Peru's stock market to frontiers from emerging markets further dampened sentiment.

On the bond side the off-benchmark exposure to Uruguayan inflation linked bonds was the main source of outperformance, as the combination of high real yields and rebounding inflation partially offset the depreciation of the currency. The underweight exposure to the Colombian Peso, which was hit particularly hard by the fall in oil prices, was also a positive contributor. The underweight exposure to the Mexican Peso has detracted from performance. While slow growth and heavy investor positioning has weighed on the Peso, it has outperformed both the Brazilian and the Colombian currencies. The long duration position in Peruvian rates was also a minor drag on performance, as the reluctance of the central bank to allow the currency to absorb the commodity price shock put additional pressure on the local bond market.

Portfolio Activity

During the review period, we sold our shareholding in Petrobras, on growing worries about its governance shortcomings, rising leverage and deteriorating ability to repay its debt. We also reduced our position in Soriana, on concerns that its acquisition of stores from fellow retailer Comercial Mexicana would weaken its balance sheet, and pared back OMA and Lojas Renner following share price strength.

Against this, three new holdings were initiated. These were Arca Contal, Mexico's second-largest Coca-Cola bottler with well-run operations and solid growth prospects; Banco Santander Mexico, a conservatively managed lender with an established domestic market position; and Iguatemi, a leading Brazilian shopping centres owner and operator with a portfolio of well-located malls, a broad tenant base and a pipeline of new sites under development. We also added to our holdings in Banco Bradesco, Exito and Itau Unibanco, which were trading at attractive valuations.

Earlier in the year in the bond portfolio we reduced exposure to Brazilian rates and currency, moving to an underweight position as we expected sharp deterioration in growth together with inflationary pressures arising from the necessary upward adjustment of regulated prices. Later in the year we used the sell-off in Brazilian rates to add to our bond position, but kept the underweight currency exposure. We have also reduced our underweight position in Colombia at the expense of Mexico, as relative valuations moved in the favour of the former, and increased our exposure to Peruvian rates.

Over the year we have shifted the portfolio allocation from being overweight equity into overweight bonds, as in a slower growth environment fixed income markets tend to outperform the equity markets.

Outlook

Latin America seems to be facing a 'new normal' of slowing growth, relative to the boom of the past decade. The policy responses of the region's governments will be closely watched: the successful implementation of structural reforms for productivity and fiscal health is now more crucial than ever.

Despite the macroeconomic uncertainty, however, we have been encouraged by developments on the corporate front. Against a backdrop of reduced investment and slowing consumption growth, our holdings have continued to show strong focus on profitability and balance sheet strength. Margins have largely proven resilient, owing to cost cuts and improvements in efficiency. While we are unlikely to see a significant recovery in corporate earnings in the near future, the companies in the portfolio have positioned themselves well to weather the challenging operating environment. Valuations appear more compelling, with the equity index trading at around 15 times 2015 earnings. Meanwhile, our investment process remains consistent: the indiscriminate sell-off in the region has unveiled opportunities for us to add to favoured holdings and pick up new ones at attractive prices. Our well-resourced and very experienced team of investment managers have been investing in the region for many years and still believe in the underlying value to be found in the securities in which we invest.

The significant currency depreciation we have seen across the region should help to improve sovereign external balances and partially off-set the negative impact of lower commodities prices on fiscal revenues. However, central banks will have to reinforce their credibility and keep inflation expectations well anchored to prevent second round inflationary pressures from weaker currencies. This has removed the opportunity of further policy easing, while the upcoming tightening of US monetary policy stance points towards a more hawkish outlook. Encouragingly, we see that most central banks in the countries we invest in are well aware of these challenges, and are ready to conduct prudent policies, which should anchor the long end of the local yield curves and prevent currency overshoots.

Aberdeen Asset Managers Limited

3 November 2015

STRATEGIC REPORT - RESULTS

Financial Highlights

	31 August 2015	31 August 2014	% change
Total assets (£'000)	44,520	69,641	-36.1
Total equity shareholders' funds (net assets) (£'000)	35,872	60,729	-40.9
Market capitalisation (£'000)	34,163	54,567	-37.4
Ordinary share price (mid market)	52.50p	82.75p	-36.6
Subscription share price (mid market)	0.25p	2.85p	-91.2
Net asset value per Ordinary share	55.17p	92.60p	-40.4
Discount to net asset value per Ordinary share	4.84%	10.64%
Net gearing {A}	21.77%	13.47%

Dividends and earnings
Total return per Ordinary share	-33.22p	8.65p
Earnings per Ordinary share (revenue)	3.85p	4.11p	-6.3
Dividends per Ordinary share	4.25p	4.25p	-
Dividend cover	0.91 times	0.97 times
Revenue reserves{B} (£'000)	658	922

Operating costs
Ongoing charges ratio{C}	1.89%	1.99%

{A} Calculated in accordance with AIC guidance "Gearing Disclosures post Retail Distribution Review".
{B} Excludes payment of fourth interim dividend of 1.25p (2014 - 1.25p) per Ordinary share equating to £813,000 (2014 - £820,000).
{C} Ongoing charges ratio calculated in accordance with guidance issued by the AIC as the total of the investment management fee and administrative expenses divided by the average cum income net asset value throughout the year.

Performance (total return)

	1 year	3 year	Since launch{A}
	% return	% return	% return
Ordinary share price	-32.3	-34.5	-33.8
Net asset value	-36.8	-34.9	-30.4
Benchmark	-32.2	-29.0	-26.4

Total return represents the capital return plus dividends reinvested.
{A} Launch date 16 August 2010.

Dividends

	Rate	xd date	Record date	Payment date
1st interim 2015	1.00p	17 December 2014	19 December 2014	30 January 2015
2nd interim 2015	1.00p	2 April 2015	7 April 2015	30 April 2015
3rd interim 2015	1.00p	16 July 2015	17 July 2015	31 July 2015
4th interim 2015	1.25p	8 October 2015	9 October 2015	30 October 2015
	______
Total dividends 2015	4.25p
	______

	Rate	xd date	Record date	Payment date
1st interim 2014	1.00p	23 December 2013	27 December 2013	31 January 2014
2nd interim 2014	1.00p	2 April 2014	4 April 2014	30 April 2014
3rd interim 2014	1.00p	2 July 2014	4 July 2014	31 July 2014
4th interim 2014	1.25p	1 October 2014	3 October 2014	31 October 2014
	______
Total dividends 2014	4.25p
	______

INVESTMENT PORTFOLIO

Ten Largest Equity Investments

As at 31 August 2015

			Valuation	Total	Valuation
			2015	assets	2014
Company	Sector	Country	£'000	%	£'000
Banco Bradesco ADR
A leading Brazilian bank with a good quality loan portfolio, it has benefited from robust growth in retail lending.	Banks	Brazil	1,191	2.7	3,979
Itau Unibanco Holdings ADR
Brazil's largest privately-owned bank, it is strongly capitalised and well positioned with decent growth and asset quality.	Banks	Brazil	1,016	2.3	2,562
Fomento Economico Mexicano ADR
Fomento Economico Mexicano participates in beverages through Coca-Cola FEMSA, the largest bottler of Coca-Cola products globally. The company also participates in small-format stores through FEMSA Comercio which includes 12,800 Oxxo convenience stores and more recent developments into pharmacies and gas stations.	Food, Beverage & Tobacco	Mexico	984	2.2	1,663
Grupo Financiero Banorte
Mexico's third largest bank in terms of assets and the largest and only locally owned Mexican bank, well positioned to continue growing and strengthening its competitive position to benefit from this underpenetrated market.	Banks	Mexico	796	1.8	1,587
Lojas Renner{B}
The second largest clothing retailer in Brazil.	Retailing	Brazil	714	1.6	1,538
Vale ADR
The Brazilian miner is the world's lowest-cost iron-ore producer.	Materials	Brazil	679	1.5	2,471
Ambev{B}
Latin America's largest producer of beer and the sole distributor of Pepsi products in Brazil.	Food, Beverage & Tobacco	Brazil	654	1.5	1,428
Brazil Foods Sponsored ADR
Brazil Foods is a vertically integrated food producer selling poultry, pork, processed food, among others. It is the leading player in the majority of its markets, especially in the poultry segment where it is the leading producer globally.	Food, Beverage & Tobacco	Brazil	631	1.4	706
Wal-Mart De Mexico
Wal-Mart De Mexico is a multi-format retailer with leading market positions in Mexico and Central America.	Retailing	Brazil	590	1.3	806
Ultrapar Participacoes ADR
Brazilian fuels and chemicals company with defensive qualities. It has strengthened its distribution network with its acquisition of the Texaco-brand of gasoline stations in Brazil.	Energy	Brazil	589	1.3	1,317
Top ten equity investments			7,844	17.6

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

{B} Held in Subsidiary.

Investment Portfolio - Other Investments

As at 31 August 2015

			Valuation	Total	Valuation
			2015	assets	2014
Company	Sector	Country	£'000	%	£'000
Banco Santander-Chile ADR	Banks	Chile	550	1.2	962
Multiplan Empreendimentos NPV{B}	Real Estate Investment Services	Brazil	542	1.2	1,626
Embotelladora Andina 'A' Pref{B}	Beverages	Chile	535	1.2	741
Grupo Aeroportuario Sureste ADR	Industrial Transportation	Mexico	497	1.1	772
Tenaris ADR	Industrial Metals & Mining	Argentina	475	1.1	1,152
Grupo Aeroportuario Centro Nort ADR	Industrial Transportation	Mexico	453	1.0	818
Arezzo Industria e Comercio{B}	Personal Goods	Brazil	374	0.9	1,037
S.A.C.I. Falabella{B}	General Retailers	Chile	372	0.9	721
Souza Cruz{B}	Tobacco	Brazil	339	0.8	479
BM&Fbovespa{B}	Financial Services	Brazil	331	0.7	632
Top twenty equity investments			12,312	27.7
Kimberly-Clark de Mexico	Personal Goods	Mexico	328	0.7	647
Natura Cosmeticos{B}	Personal Goods	Brazil	327	0.7	861
Wilson, Sons{B}	Industrial Transportation	Brazil	321	0.7	624
Grupo Bancolombia	Banks	Columbia	318	0.7	620
Parque Arauco{B}	Real Estate Investment Services	Chile	286	0.6	443
WEG{B}	Electronic & Electrical Equipment	Brazil	267	0.6	522
Vale Pref ADR	Materials	Brazil	260	0.6	718
Odontoprev{B}	Health Care Equipment & Services	Brazil	255	0.6	481
TOTVS{B}	Software & Computer Services	Brazil	243	0.5	473
Valid Solucoes{B}	Support Services	Brazil	240	0.5	421
Top thirty equity investments			15,157	33.9
Organizacion Soriana	General Retailers	Mexico	214	0.5	698
Almacenes Exito	Food & Drug Retailers	Columbia	208	0.5	630
Grana Y Montero	Construction & Materials	Peru	202	0.5	516
Arca Continental	Beverages	Mexico	194	0.4	-
Localiza Rent A Car	Transportation	Brazil	161	0.4	614
Cia Hering Com{B}	Personal Goods	Brazil	155	0.3	745
Grupo Financiero Santander	Banks	Mexico	152	0.3	-
Bradespar{B}	Materials	Brazil	146	0.3	561
Iguatemi Empressa de Shopping{B}	Real Estate Investment Services	Brazil	124	0.3	-
Grupo Lala	Food Producers	Mexico	22	0.0	-
Total equity investments			16,735	37.4

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

{B} Held in Subsidiary.

Investment Portfolio - Bonds
As at 31 August 2015
			Valuation	Total	Valuation
			2015	assets	2014
Issue	Sector	Country	£'000	%{B}	£'000
Uruguay (Rep of) 5% 14/09/18	Government Bonds	Uruguay	4,806	10.8	5,107
Brazil (Fed Rep of) 10% 01/01/17{A}	Government Bonds	Brazil	4,486	10.1	10,648
Brazil (Fed Rep of) 10% 01/01/25{A}	Government Bonds	Brazil	3,725	8.4	-
Colombia (Rep of) 9.85% 28/06/27	Government Bonds	Columbia	3,774	8.5	3,090
Mexico (United Mexican States) 8% 07/12/23	Government Bonds	Mexico	2,331	5.2	2,859
Mexico (United Mexican States) 7.5% 03/06/27	Government Bonds	Mexico	1,867	4.2	1,587
Peru (Rep of) 6.95% 12/08/31 REGS	Government Bonds	Peru	967	2.1	512
Brazil (Fed Rep of) 10% 01/01/18{A}	Government Bonds	Brazil	891	2.0	674
Brazil (Fed Rep of) 10% 01/01/21{A}	Government Bonds	Brazil	831	1.9	1,386
Mexico (United Mexican States) 7.75% 14/12/17	Government Bonds	Mexico	823	1.8	1,014
Uruguay (Rep of) 4.25% 05/04/27	Government Bonds	Uruguay	753	1.7	381
Peru (Rep of) 7.84% 12/08/20	Government Bonds	Peru	511	1.2	679
Peru (Rep of) 6.95% 12/08/31	Government Bonds	Peru	469	1.2	586
Mexico (United Mexican States) 4.5% 22/11/35	Government Bonds	Mexico	177	0.4	216
Total value of Bonds			26,411	59.5
Total value of equity investments			16,735	37.4
Total value of portfolio investments			43,146	96.9
Other net assets held in subsidiary			419	1.0
Total investments			43,565	97.9
Net current assets{B}			955	2.1
Total assets			44,520	100.0

Portfolio investments reflect consolidated investee holdings of the Company and its Subsidiary.
{A} Held in Subsidiary.
{B} Excluding bank loans of £8,648,000 (2014 - £8,912,000)

DIRECTORS' RESPONSIBILITIES STATEMENT

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 & 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 Annual 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 adopted by the European Union and interpretations issued by the International Financial Reporting Interpretations Committee of 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 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

3 November 2015

1st Floor, Sir Walter Raleigh House

48 - 50 Esplanade, St Helier

Jersey JE2 3QB

The Directors are 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.

DIRECTORS' REPORT

Introduction

The current Directors, Richard Prosser, Martin Adams, Jeremy Arnold, George Baird and Martin Gilbert were the only Directors in office during the period.

The Directors present their Report and the audited financial statements for the year ended 31 August 2015.

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 intends 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.

The Company is a member of the Association of Investment Companies ("AIC").

Results and Dividends

Details of the Company's results and dividends are shown under Financial Highlights and in notes 8 and 9 to the financial statements. In line with expectations, interim dividends have been paid on a quarterly basis in January, April and July and the fourth interim was paid on 30 October 2015. The Company met its stated intention to pay aggregate dividends of 4.25p per Ordinary share for the year ended 31 August 2015 although, as indicated in the Chairman's Statement, this required the use of the Company's brought forward revenue reserve and a payment from capital of approximately 0.22p per share.

Management Arrangements

The Company has an agreement (the "Management Agreement") APWML for the provision of management services, details of which are shown in notes 5 and 6 to the financial statements.

Under the Management Agreement, Aberdeen is entitled to both a management fee and a company secretarial and administration fee. APWML has agreed to waive the company secretarial and administration fee of £112,000, equating to 0.17p per share, for the year ended 31 August 2015. This waiver constitutes a smaller related party transaction for the purpose of LR 11.1.10 R of the Financial Conduct Authority's Listing Rules.

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 Aberdeen, in their opinion the continuing appointment of APWML, on the terms agreed, is in the interests of Shareholders as a whole.

Share Capital

As at 31 August 2015 there were 65,022,824 Ordinary shares and 10,420,986 Subscription shares allotted and in issue with a further 1,550,000 Ordinary shares held in treasury. Details of changes to the Company's shares in issue during the year are provided in the Annual Report.

Subscription Shares

Each Subscription share carries the right to convert into one Ordinary share on the final subscription date which is 31 December 2015 at a price of 120p per share.

The 28 day period prior to 31 December 2015 offers the FINAL OPPORTUNITY for holders of Subscription shares to exercise their right to subscribe for Ordinary shares. A reminder letter accompanies this Annual Report addressed to Subscription Shareholders.

Directors

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 18 to the financial statements. Details of the Directors retiring by rotation at the Annual General Meeting are disclosed in the Statement of Corporate Governance.

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.

APWML, as the Company's non-EEA alternative investment fund manager, also notified the UK Financial Conduct Authority ("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, APWML is required to make available certain disclosures for potential investors in the Company and these are available on the Company's website: www.latamincome.co.uk.

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 LSE 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, will not be disadvantageous to existing Ordinary Shareholders or Subscription Shareholders.

Unless previously disapplied by special resolution, in accordance with the Listing Rules of the Financial Conduct Authority, 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 8, 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 eighteen months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2016.

Purchase of the Company's Securities

In the past the Company has quoted the aim of its discount management policy as being to try to maintain the price at which the Ordinary shares trade relative to their NAV at a discount of no more that 5%. As stated in the Chairman's Statement, during the year under review the Company bought back 560,000 Ordinary shares for treasury at a total cost of £331,000. Subsequent to the period end a further 100,000 Ordinary shares have been purchased for treasury at a cost of £46,000. It remains the Board's intention, subject to market conditions, to try to maintain a discount of around 5% over the longer term.

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. Purchases of Subscription shares will only be made through the market for cash if the NAV per Ordinary share is greater than 120p (being the price payable on the exercise of a Subscription share) and at prices below the prevailing NAV attributable to a Subscription share (as last calculated) where the Directors believe such purchases will enhance Shareholder value.

Resolution 6, 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 Listing Rules of the Financial Conduct Authority. The Company will seek authority to purchase up to a maximum of 9,731,931 Ordinary shares (representing 14.99 per cent. of the current issued Ordinary share capital excluding treasury shares). The authority being sought shall expire at the conclusion of the Annual General Meeting in 2016 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.

Resolution 7, a Special Resolution, will be proposed to renew the Directors' authority to make market purchases of the Company's Subscription shares in accordance with the provisions of the Listing Rules of the LSE. During the period since listing and to the date of this Report, no Subscription shares have been purchased in the market for cancellation. The Company will seek authority to purchase up to a maximum of 1,562,105 Subscription shares (representing 14.99 per cent. of the current issued Subscription shares). The authority being sought shall expire at the conclusion of the Annual General Meeting in 2016 unless such authority is renewed prior to such time. Any Subscription shares purchased in this way will be cancelled and the number of Subscription shares will be reduced accordingly.

By a subscription and lock-in agreement dated 14 July 2010 between the Company and Aberdeen, Aberdeen agreed to purchase for cash such number of Subscription shares as conferred the right to subscribe for such number of Ordinary shares as represented 10% of the Ordinary shares in issue on listing. Aberdeen subscribed for and was allotted 5,210,618 Subscription shares at 10.5p each. The Company and Aberdeen have agreed that in the event the Management Agreement is terminated prior to the final subscription date for the Subscription shares, the Company will have the right to cancel all of these Subscription shares then outstanding subject to paying compensation based on the average middle market price for the 60 consecutive LSE dealing days immediately preceding the date of announcement of termination, or, if earlier, the first announcement of the intention to terminate the Management Agreement. These Subscription Shares expire on 31 December 2015.

Recommendation

Your Board considers Resolutions 6 to 8 to be in the best interests of the Company and its members as a whole. Accordingly, your Board recommends that Ordinary Shareholders should vote in favour of Resolutions 6 to 8 to be proposed at the Annual General Meeting, as they intend to do in respect of their own beneficial shareholdings amounting to 159,550 Ordinary shares.

Directors' & Officers Liability Insurance

Directors' & Officers' liability insurance cover has been maintained throughout the period at the expense of the Company.

Additional Information

- There are no restrictions on the transfer of Ordinary shares in the Company other than certain restrictions which may from time to time be imposed by law (for example, insider trading law).

- The Company is not aware of any agreements between Shareholders that may result in restriction on the transfer of securities and/or voting rights.

- The rules governing the appointment of Directors are set out in the Statement of Corporate Governance. The Company's Articles of Association may only be amended by a special resolution at a general meeting of Shareholders.

- The Company is not aware of any significant agreements to which it is a party that take effect, alter or terminate upon a change of control of the Company following a takeover.

- Other than the management and administration contracts with Aberdeen, set out earlier in the report, the Company is not aware of any contractual or other agreements which are essential to its business which ought to be disclosed in the Directors' Report.

Corporate Governance

The Statement of Corporate Governance forms part of this Directors' Report and covers the Company's compliance with the UK Corporate Governance Code and is shown in the Annual Report.

Accountability and Audit

The respective responsibilities of the Directors and the auditor in connection with the financial statements are set out in the Annual Report.

Each Director confirms that, so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware, and he has taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. Additionally there are no important events since the period end other than as disclosed in the notes to the financial statements

The Directors have reviewed the level of non-audit services provided by the independent auditor during the year, together with the independent auditor's procedures in connection with the provision of such services, and remain satisfied that the auditor's objectivity and independence is being safeguarded.

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.

By order of the Board

Aberdeen Private Wealth Management Limited

Secretary

3 November 2015

1^st Floor, Sir Walter Raleigh House

48 - 50 Esplanade, St Helier

Jersey JE2 3QB

GOING CONCERN

In accordance with the Financial Reporting Council's guidance on Going Concern and Liquidity Risk issued in October 2009 the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equities, equity-related investments and fixed income investments 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 on pages 3 and 4 and have reviewed forecasts detailing revenue and liabilities and the Directors 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.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

- 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'.

Declaration

The Directors listed in the Annual 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 adopted by the European Union and interpretations issued by the International Financial Reporting Interpretations Committee of 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 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

3 November 2015

1^st Floor, Sir Walter Raleigh House

48 - 50 Esplanade, St Helier

Jersey JE2 3QB

STATEMENT OF COMPREHENSIVE INCOME

		Year ended 31 August 2015			Year ended 31 August 2014
					Restated{A}
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Income
Income from investments	4	3,170	-	3,170	3,600	-	3,600
Gains/(losses) on financial assets held at fair value through profit or loss		-	(23,179)	(23,179)	-	2,974	2,974
Currency (losses)/gains		-	(706)	(706)	-	631	631
Gains/(losses) on forward foreign currency contracts		-	23	23	-	(137)	(137)
		_______	_______	_______	_______	_______	_______
		3,170	(23,862)	(20,692)	3,600	3,468	7,068
Expenses		_______	_______	_______	_______	_______	_______
Investment management fee	5	(223)	(335)	(558)	(263)	(394)	(657)
Other operating expenses	6	(342)	-	(342)	(480)	-	(480)
Profit/(loss) before finance costs and taxation		2,605	(24,197)	(21,592)	2,857	3,074	5,931
Finance costs	7	(42)	(64)	(106)	(54)	(82)	(136)
		_______	_______	_______	_______	_______	_______
Profit/(loss) before taxation		2,563	(24,261)	(21,698)	2,803	2,992	5,795
Taxation		(45)	-	(45)	(96)	-	(96)
		_______	_______	_______	_______	_______	_______
Profit/(loss) for the year		2,518	(24,261)	(21,743)	2,707	2,992	5,699
		_______	_______	_______	_______	_______	_______
Earnings per Ordinary share (pence):	9
Basic and Diluted		3.85	(37.07)	(33.22)	4.11	4.54	8.65
		_______	_______	_______	_______	_______	_______

{A} Restated following the adoption of Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) which is explained more fully in note 2(a).

The profit and 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	As at
		31 August	31 August	1 September
		2015	2014	2013
			Restated{A}	Restated{A}
	Notes	£'000	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	10	43,565	68,844	67,827
		_______	_______	_______
Current assets
Cash		838	733	181
Forward foreign currency contracts		64	97	309
Other receivables	11	386	315	369
		_______	_______	_______
Total current assets		1,288	1,145	859
		_______	_______	_______
Total assets		44,853	69,989	68,686

Current liabilities
Bank loan	12	(8,648)	(8,912)	(9,567)
Forward foreign currency contracts		(196)	(122)	(240)
Other payables		(137)	(226)	(269)
		_______	_______	_______
Total current liabilities		(8,981)	(9,260)	(10,076)
		_______	_______	_______
Net assets		35,872	60,729	58,610
		_______	_______	_______
Equity capital and reserves
Equity capital	13	65,936	65,936	65,936
Capital reserve	14	(30,722)	(6,129)	(8,345)
Revenue reserve		658	922	1,019
		_______	_______	_______
Equity Shareholders' funds		35,872	60,729	58,610
		_______	_______	_______

Net asset value per Ordinary share (pence):
Basic and Diluted	15	55.17	92.60	88.04
		_______	_______	_______

{A} Restated following the adoption of Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) which is explained more fully in note 2(a).

STATEMENT OF CHANGES IN EQUITY

Year ended 31 August 2015
		Stated	Capital	Revenue
		capital	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000
Balance at 31 August 2014		65,936	(6,129)	922	60,729
Profit for the year		-	(24,261)	2,518	(21,743)
Dividends paid	8	-	-	(2,782)	(2,782)
Purchase of own shares to be held in treasury		-	(332)	-	(332)
		_______	_______	_______	_______
Balance at 31 August 2015		65,936	(30,722)	658	35,872
		_______	_______	_______	_______

Year ended 31 August 2014
		Stated	Capital	Revenue
		capital	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000
Balance at 1 September 2013		65,936	(8,345)	1,019	58,610
Profit for the year		-	2,992	2,707	5,699
Dividends paid	8	-	-	(2,804)	(2,804)
Purchase of own shares to be held in treasury		-	(776)	-	(776)
		_______	_______	_______	_______
Balance at 31 August 2014		65,936	(6,129)	922	60,729
		_______	_______	_______	_______

CASH FLOW STATEMENT

	Year ended	Year ended
	31 August 2015	31 August 2014
		Restated{A}
	£'000	£'000
Dividend income	515	879
Fixed interest income	1,029	1,018
Income from Subsidiary	1,939	298
Deposit interest	-	1
Investment management fee paid	(634)	(662)
Other cash expenses	(461)	(529)
	_______	_______
Cash generated from operating activities before finance costs and taxation	2,388	1,005
Interest paid	(107)	(134)
Withholding taxes paid	(42)	(95)
	_______	_______
Net cash inflow from operating activities	2,239	776

Cash flows from investing activities
Purchases of investments	(12,786)	(4,584)
Proceeds from sales of investments	14,584	8,008
	_______	_______
Net cash inflow from investing activities	1,798	3,424

Cash flows from financing activities
Equity dividends paid	(2,782)	(2,804)
Repurchase of own shares	(315)	(776)
Net movement in bank loan	(85)	(614)
	_______	_______
Net cash outflow from financing activities	(3,182)	(4,194)
	_______	_______
Net decrease in cash	855	6
Foreign exchange	(750)	546
Cash at start of year as restated	733	181
	_______	_______
Cash at end of year	838	733
	_______	_______

{A} Restated following the adoption of Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) which is explained more fully in note 2(a).

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2015

1.	Principal activity
	The Company is a closed-ended 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 subsidiary, Aberdeen Latin American Income Fund LLC ("Subsidiary") is similar in all relevant respects to that of its Jersey 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 2015.

		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 Company's financial statements are presented in sterling, which is also the functional currency as it is the basis upon which Shareholders operate 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 2014.

		Significant judgements
		IFRS 10 Consolidated Financial Statements
		The preparation of financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the accounting policies. One of the mandated 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) effective for periods ending on or after 1 January 2014. The amendments require entities that meet the definition of an investment entity to fair value certain subsidiaries through profit or loss in accordance with IAS 39 Financial Instruments: Recognition and Measurement, rather than consolidate their results.

		Assessment as investment entity
		Entities which meet the definition of an investment entity are required to fair value subsidiaries through profit or loss rather than consolidate them. To determine whether an entity meets the definition of an investment entity it is required to meet 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 invest funds solely from 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 are recognised at fair value through profit or loss. This has changed the treatment for the Company's investment in its Subsidiary, which was previously consolidated.

		The change is first applicable to the Company for the year ended 31 August 2015. Under the transitional provisions of IFRS 10 this change in accounting policy is required to be accounted for retrospectively. Therefore, the relevant comparative figures have been restated.

		The impact of these changes on the Company's Balance Sheet is to increase the value of the investment in the Subsidiary at 31 August 2014 by £364,000, to decrease cash by £128,000 and to decrease other receivables by £236,000. The impact of these changes on the Company Statement of Comprehensive Income is to decrease income for the year ended 31 August 2014 by £1,597,000 and to increase gains/losses on investments held at fair value through profit or loss by £1,597,000. The impact of these changes on the Company's Cash Flow Statement is to decrease cash by £128,000. The change in accounting policy resulted, in aggregate, in no adjustment to the earnings and net assets attributable to holders of the Company's shares.

		New and amended standards and interpretations
		The accounting policies adopted in the current year are consistent with those of the previous year except that the Company has adopted the following new and revised accounting standards:
		IFRS 10 Consolidated Financial Statements including Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
		IFRS 12 Disclosure of Interests in Other Entities
		IAS 27 Separate Financial Statements (revised)

		Of these standards, only IFRS 10 (including investment entities amendments) has made a significant impact on the Company as its adoption requires the restatement of results previously presented.

		IFRS 12 requires additional disclosures to be made, but had no effect on the financial position or performance of the Company. The adoption of IFRS 11, IAS 27 (revised) and IAS 28 (revised) has not had a material impact on the financial statements.

		None of the above standards has made a significant impact on the financial performance and position but future periods may be impacted.

		Standards issued but not yet effective
		At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but not yet effective:
		IFRS Annual Improvements 2012 to 2014 (effective 1 July 2016)
		IFRS 9 Financial Instruments (effective 1 January 2018)
		In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects all phases of the financial instruments project and replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and Hedge Accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required but comparative information is not compulsory. Early application of previous versions of IFRS 9 (2009, 2010 and 2013) is permitted if the date of initial application is before 1 February 2015. The adoption of IFRS 9 is unlikely to have a material effect on the classification and measurement of the Company's financial assets or financial liabilities.
		IFRS 15 Revenue from contracts with customers (effective 1 January 2018)

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

	(b)	Income
		Dividend income from equity investments are recognised on the ex-dividend date. Dividend income from equity investments where no ex-dividend date is quoted are brought into account 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 credited to capital or revenue according to their circumstances.

		The fixed returns on debt securities and non-equity shares are recognised using the effective interest rate method.

	(c)	Expenses and interest payable
		All expenses, with the exception of interest, which is recognised using the effective interest method, are accounted for 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 2015 will be subject to Jersey income tax at the rate of 0% (2014 - 0%).

		However, in some jurisdictions, 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.

	(e)	Investments held at fair value through profit or loss
		Purchases of investments are recognised on a trade-date basis and designated upon initial recognition as held at fair value through profit or loss. All investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the Company is provided internally on that basis. These investments also include inflation-linked bonds which are considered to be compound financial instruments. Proceeds are measured at fair value, which is regarded as the proceeds of sale less any transaction costs. Sales of investments are also recognised on a trade date basis.

		Changes in the value of investments held at fair value through profit or loss, gains and losses on disposal and related transaction costs are recognised in the Statement of Comprehensive Income.

	(f)	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.

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

	(h)	Other receivables and payables
		Other receivables do not carry any interest and are short-term in nature and are accordingly stated at their recoverable amount. Other payables are non interest bearing and are stated at their payable amount.

	(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 (c) above.

		When the Company purchases its Ordinary shares to be held in treasury, 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)	Subscription shares
		The characteristics of the Subscription shares of the Company have been assessed and are deemed to fall within the definition for equity under IAS 32 'Financial Instruments: Presentation'.

	(k)	Foreign currency
		Monetary assets and liabilities are converted into sterling at the rate of exchange ruling at the Balance Sheet date. Transactions during the period involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss.

	(l)	Bank loans
		Monies borrowed to finance the investment objectives of the Company are stated at the amount of the net proceeds immediately after the issue plus cumulative finance costs less cumulative payments made in respect of the debt. The finance cost of such borrowings is allocated to years over the term of the debt at a constant rate on the carrying amount and is charged 40% to revenue and 60% to capital reserves to reflect the Company's investment policy and estimated prospective income and capital growth.

		Borrowings are held at amortised cost using the effective interest rate method.

	(m)	Intercompany balances
		The net income generated in the Subsidiary is transferred to the Company via an intercompany balance on a periodic basis.

	(n)	Derivative financial instruments
		The Company uses 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.

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 interrelated, and each activity is 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 by geographical location. The basis for attributing the income is the place of incorporation of the instrument's investment.

		2015	2014
		£'000	£'000
	Argentina	19	23
	Brazil	1,673	2,159
	Chile	66	83
	Columbia	257	118
	Mexico	445	602
	Peru	129	102
	United Kingdom	-	2
	Uruguay	581	511
		_______	_______
		3,170	3,600
		_______	_______

	The Company's income by investment type is derived 26% (2014 - 34%) from equities, 74% (2014 - 66%) from bonds.

		2015	2014
			Restated
4.	Income from investments	£'000	£'000
	Dividend income	490	823
	Fixed interest income	1,284	1,180
	Income from Subsidiary	1,396	1,597
		_______	_______
		3,170	3,600
		_______	_______

	The Company receives income from its Subsidiary and there are no significant restrictions on the transfer of funds to it.

5.	Investment management fee
	The Company has an agreement with APWML for the provision of management services. Portfolio management services have been delegated by APWML to AAM.

	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 at the year end was £37,000 (2014 - £113,000). Investment management fees are charged 40% to revenue and 60% to capital.

		2015	2014
6.	Other operating expenses	£'000	£'000
	Directors' fees	85	85
	Promotional activities	48	53
	Secretarial and administration fee{A}	-	112
	Auditor's remuneration:
	- fees payable for the audit of the annual accounts	29	26
	- fees payable for other services to the Company	-	2
	Legal and advisory fees	-	7
	Custodian and overseas agents' charges	69	72
	Broker fees	30	28
	Stock exchange fees	13	14
	Registrar's fees	21	21
	Printing	19	16
	Other	28	44
		_______	_______
		342	480
		_______	_______

	The Company has an agreement with AAM for the provision of promotional activities. The total fees incurred under the agreement during the year were £48,000 (2014 - £53,000), of which £8,000 (2014 - £9,000) was due to AAM PLC at the year end.

	{A}The Company's management agreement with APWML provides for the provision of company secretarial and administration services. This agreement has been sub-delegated to AAM which is entitled to an annual fee of £112,000 which is set to increase annually in line with any increase in the UK retail prices index, however, APWML waived its entitlement to a fee during the year. Accordingly, a balance of £95,000 was due to the Company by APWML at the year end (2014 - £19,000 due to APWML by the Company).

		2015			2014
		Revenue	Capital	Total	Revenue	Capital	Total
7.	Finance costs	£'000	£'000	£'000	£'000	£'000	£'000
	Bank loans	42	64	106	54	82	136
		_______	_______	_______	_______	_______	_______

		2015	2014
8.	Dividends on equity shares	£'000	£'000
	Distributions to equity holders in the period:
	Fourth interim dividend for 2014 - 1.25p (2013 - 1.25p) per Ordinary share	820	832
	First interim dividend for 2015 - 1.00p (2014 - 1.00p) per Ordinary share	656	660
	Second interim dividend for 2015 - 1.00p (2014 - 1.00p) per Ordinary share	655	656
	Third interim dividend for 2015 - 1.00p (2014 - 1.00p) per Ordinary share	651	656
		_______	_______
		2,782	2,804
		_______	_______

	The fourth interim dividend for the year of 1.25p per Ordinary share has not been included as a liability in these financial statements as it was announced and paid after 31 August 2015.

9.	Earnings per Ordinary share
	The basic earnings or loss per Ordinary share is based on the loss for the year of £21,743,000 (2014 - profit of £5,699,000) and on 65,451,577 (2014 - 65,921,981) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.

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

		2015			2014
	Basic	Revenue	Capital	Total	Revenue	Capital	Total
	Profit/(loss) (£'000)	2,518	(24,261)	(21,743)	2,707	2,992	5,699
	Weighted average number of Ordinary shares in issue ('000)			65,452			65,922
	Return per Ordinary share (pence)	3.85	(37.07)	(33.22)	4.11	4.54	8.65
		_______	_______	_______	_______	_______	_______

10.	Investments held at fair value through profit or loss

			Year ended	Year ended
			31 August 2015	31 August 2014
				(Restated)
	(a)	Company	£'000	£'000
		Quoted equities	10,348	25,794
		Quoted bonds	16,476	16,030
		Investment in Subsidiary	16,741	27,020
			_______	_______
		Closing valuation	43,565	68,844
			_______	_______

		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 Company receives income from its Subsidiary and there are no significant restrictions on the transfer of funds to it.

	(b)	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 2015	31 August 2014
				(Restated)
			£'000	£'000
		Purchases	3	5
		Sales	6	4
			_______	_______
			9	9
			_______	_______

		2015	2014
			(restated)
11.	Other receivables	£'000	£'000
	Accrued income	278	280
	Prepayments	108	18
	Due from brokers	-	17
		_______	_______
		386	315
		_______	_______

12.	Bank loan
	The Company has a £10 million (2014 - £10 million) unsecured revolving multi currency loan facility with Scotiabank Europe plc. At the year end an amount equivalent £8,648,000 was drawn down in US Dollars (2014 - £8,912,000) under the facility, fixed to 21 September 2015 at an all-in rate of 1.15455%.

	On 21 October 2015 US$10,000,000 was drawn down under this facility and fixed to 20 November 2015 at an all-in rate of 1.1478%.

	The loan outstanding at 31 August 2015 is valued at the closing rate of exchange at the period end, resulting in a foreign exchange loss of £179,000 (2014 - loss of £42,000) against the original cost of the loan.

	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.

		2015		2014
13.	Stated capital	Number	£'000	Number	£'000
	Issued and fully paid - Ordinary shares
	Balance brought forward	65,582,674	65,389	66,572,574	65,389
	Ordinary shares bought back in the period	(560,000)	-	(990,000)	-
	Subscription shares exercised in the period	150	-	100	-
		_______	_______	_______	_______
	Balance carried forward	65,022,824	65,389	65,582,674	65,389
		_______	_______	_______	_______

	Issued and fully paid - Subscription shares
	Balance brought forward	10,421,136	547	10,421,236	547
	Subscription shares exercised in the period	(150)	-	(100)	-
		_______	_______	_______	_______
	Balance carried forward	10,420,986	547	10,421,136	547
		_______	_______	_______	_______

	Treasury shares
	Balance brought forward	990,000	-	-	-
	Ordinary shares bought back in the period	560,000	-	990,000	-
		_______	_______	_______	_______
	Balance carried forward	1,550,000	-	990,000	-
		_______	_______	_______	_______
	Stated capital	76,993,810	65,936	76,993,810	65,936
		_______	_______	_______	_______

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

	During the year ended 31 August 2015, 560,000 (2014 - £990,000) Ordinary shares were bought back at a total cost of £332,000 (2014 - £776,000) including expenses. All of these shares were placed in treasury (2014 - same). Shares held in treasury consisting of 1,550,000 (2014 - 990,000) Ordinary shares represent 2.33% (2014 - 1.49%) of the Company's total issued share capital at 31 August 2015.

	In August 2010, 52,106,185 Ordinary shares were allotted and issued to investors at a price of 100p per Ordinary share. In addition 5,210,618 Subscription shares were issued on the basis of 1 Subscription share for every 10 Ordinary shares. Under the terms of the Aberdeen subscription share agreement, Aberdeen was allotted and issued a further 5,210,618 Subscription shares, which were fully paid at a price of £0.105 per Subscription share. Expenses associated with the issue amounted to £1,138,000 and these costs were deducted from the proceeds of the issue.

	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. Each Subscription share confers the right to convert such share into one Ordinary share on 31 December in any of the years 2013 to 2015 (inclusive) at a price of 120p per Subscription share. The Subscription shares carry no rights to receive dividends or other income distributions, whether out of the revenue or other profit of the Company. In addition, the Subscription shares carry no rights to receive any payment out of the assets of the Company on a return of capital on liquidation (whether for the purpose of reorganisation, amalgamation or simple dissolution) or otherwise.

	During the year ended 31 August 2015, a total of 150 Subscription shares were exercised for a total consideration of £180. At the year end the Company's share capital included 10,420,986 Subscription shares.

		2015	2014
			(restated)
14.	Capital reserve	£'000	£'000
	At beginning of year	(6,129)	(8,345)
	Currency (losses)/gains	(706)	631
	Forward foreign currency contracts gains/(losses)	23	(137)
	Movement in investment holdings fair value gains/(losses)	(19,970)	3,383
	Loss on sales of investments	(3,209)	(409)
	Capitalised expenses	(399)	(476)
	Purchase of own shares to be held in treasury	(332)	(776)
		_______	_______
	At end of year	(30,722)	(6,129)
		_______	_______

15.	Net asset value per Ordinary share
	The basic net asset value per Ordinary share is based on a net asset value of £35,872,000 (2014 - £60,729,000) and on 65,022,824 (2014 - 65,582,674) Ordinary shares, being the number of Ordinary shares issued and outstanding at the year end.

	There is no dilutive impact on the net asset value as the basic net asset value is less than the price at which outstanding Subscription shares may be subscribed for (120p per Subscription share).

16.

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. 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.

These financial risks 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 Aberdeen'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 16(b)), currency risk (see note 16(c)) and interest rate risk (see note 16(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 of Directors 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 its Subsidiary's combined investment portfolio is shown above. 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% (2014 - 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 2015, with all other variables held constant.

2015

2014

Increase

Decrease

Increase

Decrease

in fair value

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(17)

(27)

Capital return

4,289

(4,289)

6,807

(6,807)

_______

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

4,272

(4,272)

6,780

(6,780)

_______

(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 and its Subsidiary'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 and its Subsidiary'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 does not use financial instruments to mitigate currency exposure in the period between the time that income is included 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 a look through basis.

ARS

BRL

CLP

MXN

PEN

UYU

USD

2015

£'000

Debtors (due from brokers, dividends and other receivables)

276

126

Cash

555

Creditors (due from brokers, accruals and other creditors)

(163)

(8,651)

Total foreign currency exposure on net monetary items

291

(81)

126

(8,094)

Investments at fair value through profit or loss

475

19,495

1,744

9,427

2,148

5,558

_______

______

_______

Total net foreign currency exposure

475

19,786

1,749

9,346

2,156

5,684

(8,094)

_______

______

_______

ARS

BRL

CLP

MXN

PEN

UYU

USD

2014

£'000

Debtors (due from brokers, dividends and other receivables)

235

169

115

Cash

393

Creditors (due from brokers, accruals and other creditors)

(34)

(9,620)

Total foreign currency exposure on net monetary items

246

189

115

(9,210)

Investments at fair value through profit or loss

1,152

39,675

2,867

12,666

2,292

5,488

_______

______

_______

Total net foreign currency exposure

1,152

39,921

2,867

12,855

2,305

5,603

(9,210)

_______

______

_______

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:

It assumes the following changes in exchange rates:

£/Argentine Peso +/-94% (2014 +/- 104%) (maximum downside risk 100%)

£/Brazilian Real +/-74% (2014 +/-44%)

£/Chilean Peso +/-40% (2014 +/-30%)

£/Columbian Peso +/-64% (2014 +/-9%)

£/Mexican Peso +/-23% (2014 +/-8%)

£/Peruvian Nuevo Sol +/-20% (2014 +/-6%)

£/Uruguayan Peso +/-28% (2014 +/-31%)

£/US Dollar +/-3% (2014 +/-2%)

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.

If sterling had strengthened against the currencies shown, this would have had the following effect:

ARS

BRL

CLP

MXN

PEN

UYU

USD

2015

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(18)

(1,239)

(26)

(102)

(26)

(163)

Capital return

(447)

(14,642)

(699)

(2,149)

(431)

(1,592)

242

_______

_____

_______

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

(465)

(15,881)

(725)

(2,251)

(457)

(1,755)

242

_______

_____

_______

If sterling had strengthened against the currencies shown, this would have had the following effect:

ARS

BRL

CLP

MXN

PEN

UYU

USD

2014

£'000

Statement of Comprehensive Income - return after tax

Revenue return

(24)

(950)

(25)

(48)

(6)

(158)

Capital return

(1,198)

(17,565)

(860)

(1,028)

(138)

(1,737)

184

_______

_____

_______

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

(1,222)

(18,515)

(885)

(1,076)

(144)

(1,895)

184

_______

_____

_______

Foreign exchange contracts

The following forward contracts were outstanding at the Balance Sheet date:

Unrealised

gain/(loss)

31 August

Settlement

Amount

Contracted

2015

Date of contract

date

'000

rate

£'000

10 July 2015

16 October 2015

3,133

24.5443

(163)

10 July 2015

16 October 2015

4,851

1.5533

(32)

21 July 2015

16 October 2015

245

1.5537

13 August 2015

16 October 2015

1.5614

19 August 2015

24 November 2015

7,062

3.5685

19 August 2015

24 November 2015

7,578

3.3270

21 August 2015

16 October 2015

120

1.5688

(1)

(d)

Interest rate risk

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 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 include economic growth prospects, inflation, the relevant government's fiscal position, short-term interest rates and international market comparisons. The Investment Manager takes all these factors into account 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 12.

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.

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 and borrowing decisions.

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.

2015

2014

Within

one year

Total

one year

Total

£'000

Exposure to floating interest rates

Cash

1,048

861

Borrowings under loan facility

(8,648)

(8,912)

_______

Total net exposure to interest rates

(7,600)

(8,051)

_______

The Company does not have any fixed interest rate exposure to cash or bank borrowings at 31 August 2015 (2014: 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 (2014: 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 2015 was 1.15455%.

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 100 basis points higher or lower and all other variables were held constant, the Company's profit for the year ended 31 August 2015 would increase/decrease by £188,000 (2014 - £207,000). This is attributable to the Company's exposure to interest rates on its floating rate cash balances, fixed interest securities and bank loan.

(e)

Liquidity risk

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

Management of the risk

The majority of the Company's and its Subsidiary's assets are investments in quoted bonds and equities that are readily realisable. 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 2015, based on the earliest date on which payment can be required are as follows:

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2015

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(8,650)

Amounts due on forward foreign currency contracts

(196)

Amounts due to brokers and accruals

(135)

_______

(8,981)

_______

Due

between

Due

within

3 months

after

3 months

and 1 year

1 year

Total

31 August 2014

£'000

Creditors: amounts falling due within one year

Borrowings under the loan facility (including interest)

(8,916)

Amounts due on forward foreign currency contracts

(122)

Amounts due to brokers and accruals

(222)

_______

(9,260)

_______

(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.

Management of the risk

Investment transactions are carried out with a number of brokers, whose credit-standing is reviewed regularly by Aberdeen, 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:

2015

2014

Balance

Maximum

Balance

Maximum

Sheet

exposure

Sheet

exposure

£'000

Non-current assets

Bonds at fair value through profit or loss

26,411

28,739

Current assets

Cash

838

733

Other receivables

386

315

Forward foreign currency contracts

_______

27,699

29,884

_______

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 S&P credit ratings for the bond portfolio at 31 August 2015 and 31 August 2014:

2015

2014

£'000

5,198

5,676

A-

1,478

679

BBB

9,333

3,090

BBB-

5,488

BBB+

9,933

12,708

Non-rated

469

1,098

_______

26,411

28,739

_______

The S&P credit ratings agency does not provide a rating for the Uruguayan bonds held by the Company, however they attach an A- credit rating for Uruguayan local currency debt. Credit ratings agencies Fitch and Moody's attach a rating of A- and A3 respectively to the Uruguayan bonds.

17.	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 2015 comprises its equity capital and reserves that are shown in the Balance Sheet at a total of £35,872,000 (2014 - £60,729,000). As at 31 August 2015 gross debt as a percentage of net assets stood at 24.1% (2014 - 14.7%). Subsequent to the period end the level of gross debt has been reduced.

	The Board, with the assistance of Aberdeen, 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'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 (ie. 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.

18.	Related party transactions
	Fees payable during the year to the Directors are disclosed within the Directors' Remuneration Report in the Annual Report.

	Mr R Prosser is a partner of Appleby Group and a director of its wholly-owned trust company, Appleby Trust (Jersey) Limited, which provides legal services to the Company on an ad-hoc basis. During the year no services were provided (2014 - same).

	Mr M J Gilbert is a director of Aberdeen Asset Management PLC, of which APWML is a subsidiary. Management, promotional activities and secretarial, administration and custody services are provided by APWML with details of transactions during the year and balances outstanding at the year end disclosed in notes 5 and 6. Mr Gilbert does not draw a fee for providing his services as a Director of the Company.

	Under its management agreement with the Company, APWML is entitled to receive both a management fee and a company secretarial and administration fee. APWML has agreed to waive its company secretarial and administration fee of £112,000, for the year ended 31 August 2015. This waiver constitutes a smaller related party transaction for the purpose of LR 11.1.10 R of the Financial Conduct Authority's Listing Rules.

	The Company owns 100% of the share capital of its Subsidiary. During the year net revenue of £1,396,000 (2014 - £1,597,000) and capital losses of £9,741,000 (2014 - gains of £2,974,000) was generated by the Subsidiary and balances outstanding at the year end was £24,058,000 (2014 - £25,998,000). The Company is committed to providing support to the Subsidiary, if necessary.

	The Company has in place a Subscription share and lock-in agreement with APWML dated 14 July 2010 which provided for the purchase by APWML of 5,210,618 Subscription shares issued by the Company on the basis of 1 Subscription share for every 10 Ordinary shares, which were allotted and issued in August 2010. The rights attached to the Subscriptions shares are due to expire on 31 December 2015.

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

20.	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 (ie. as prices) or indirectly (ie. derived from prices); and
	-	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) of which there were none at 31 August 2015 and 31 August 2014.

	Financial assets and financial liabilities are either carried in the balance sheet at their fair value (investments) 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 2015 as follows:

					Level 1	Level 2	Total
				Note	£'000	£'000	£'000
	Financial assets/(liabilities) at fair value through profit or loss
	Quoted equities			a)	10,348	-	10,348
	Quoted bonds			b)	10,741	5,735	16,476
	Forward foreign currency contracts			c)	-	64	64
	Forward foreign currency contracts			c)	-	(196)	(196)
	Investment in Subsidiary			d)	-	16,741	16,741
					_______	_______	_______
	Net fair value				21,089	22,344	43,433
					_______	_______	_______

					Level 1	Level 2	Total
	As at 31 August 2014			Note	£'000	£'000	£'000
	Financial assets/(liabilities) at fair value through profit or loss
	Quoted equities			a)	25,794	-	25,794
	Quoted bonds			b)	10,326	5,704	16,030
	Forward foreign currency contracts			c)	-	97	97
	Forward foreign currency contracts			c)	-	(122)	(122)
	Investment in Subsidiary			d)	-	27,020	27,020
					_______	_______	_______
	Net fair value				36,120	32,699	68,819
					_______	_______	_______

	There were no assets for which significant unobservable inputs (Level 3) were used in determining fair value during the years ended 31 August 2015 and 31 August 2014. For the years ended 31 August 2015 and 31 August 2014 there were no transfers between any level.

	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 the Company's investments in Level 1 quoted bonds has been determined by reference to their quoted bid prices in active markets. The fair value of Level 2 quoted bonds has been determined by reference to their quoted bid prices which are adjusted for indexation arising from the movement of the consumer prices index within the country of their incorporation.
	c)		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.
	d)		Investment in Subsidiary
			The Company's investment in its Subsidiary are categorised in Fair Value Level 2 as its fair value has been determined by reference to the Subsidiary's net asset value at the reporting date. The net asset value is predominantly made up of quoted equities traded on recognised stock exchanges. Prior to the change of accounting policy arising from 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) quoted equities were categorised as in Fair Level 1 and quoted bonds in Fair Value Levels 1 and 2.

21.	Subsequent events
	Subsequent to the Balance Sheet date, the Company purchased a further 100,000 Ordinary shares to be held in treasury for a total cost of £46,000.

The Annual General Meeting will be held at 10.00 a.m. on 10 December 2015 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 2015 are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The annual audited accounts 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 Private Wealth Management Limited, 1^st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB or from the Company's website, www.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 Private Wealth Management Limited

Secretary

3 November 2015

This information is provided by RNS

The company news service from the London Stock Exchange

END

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