Aberdeen Latin American Income Fund

Optimism reflected in higher equity weighting

19 August 2021

Aberdeen Latin American Income Fund’s (ALAI) managers at Aberdeen Standard Investments (ASI) are encouraged by the prospects for Latin America. An economic recovery is underway and is spreading from the industrial to the service sectors as the COVID-19 vaccination programme in the region gains momentum. While inflationary pressures are building, the managers are hopeful that central banks’ monetary policies will ensure that these are temporary; for example, in Brazil, interest rates have already been hiked four times this year. The managers say that the Latin American stock market is supported by a strong earnings recovery, helped by higher commodity prices and attractive valuations. Their optimism is reflected in ALAI’s higher equity weighting, which now makes up around two-thirds of the fund. MORE »

High yield and regular quarterly dividends

23 February 2021

Aberdeen Latin American Income Fund’s (ALAI) managers at Aberdeen Standard Investments (ASI) are cautiously optimistic on the outlook for the region, focusing on its long-term opportunities, while acknowledging the current challenging backdrop due to the global healthcare pandemic. They believe that Latin America is well positioned for an economic improvement and commodity reflation as vaccines are rolled out and are confident about a corporate earnings recovery given measures that companies have taken to rationalise their businesses during the downturn. The managers also point to the relatively attractive valuations compared with the global market available in the region, which may reflect investor concerns about the fiscal and political backdrop in Latin America. MORE »

Celebrating its 10-year anniversary

21 October 2020

Aberdeen Latin American Income Fund (ALAI) is managed by Aberdeen Standard Investments’ (ASI’s) global emerging markets equities and emerging market debt teams, providing exposure to both Latin American equities and government debt. The company’s relative performance came under pressure during the coronavirus-led market sell-off earlier in 2020, but is now showing signs of improvement. ALAI’s managers are constructive on the outlook for Latin America over the next 12 months, expecting considerable economic improvement from the Q220 weakness due to the COVID-19 lockdowns, helped by unprecedented monetary and fiscal stimulus in the region. MORE »

Income without compromising on capital growth

27 February 2020

Aberdeen Latin American Income Fund (ALAI) offers exposure to Latin American equities and government debt. It is managed by Aberdeen Standard Investments’ (ASI’s) global emerging markets equities and emerging market debt teams. While 2019 was a difficult year in terms of economic growth, the markets performed strongly, underlining the resilience of the region. The managers remain ‘cautiously optimistic’ on the outlook for Latin America, led by the largest economies Brazil and Mexico, which are supported by lower interest rates and stable inflation, while there is also a positive government reform agenda in Brazil. ALAI is continuing to deliver on its income objective without compromising on its capital growth potential. It has meaningful revenue reserves and the fund offers an attractive 5.1% yield. MORE »

Outperforming a volatile market

19 August 2019

Aberdeen Latin American Income Fund (ALAI) offers broad exposure to Latin America (both equities and government debt). It is managed by Aberdeen Standard Investments’ (ASI’s) well-resourced global emerging markets equities and emerging market debt teams. They are cautiously optimistic on the outlook for Latin America, believing the continued low interest-rate environment is supportive for corporate earnings growth and has the potential to stimulate investor demand for attractively valued assets in the region. ALAI has generated solid double-digit annualised NAV and share price total returns over the last three years, with particularly strong absolute and relative performance in the last 12 months. The fund offers an attractive 4.9% dividend yield. MORE »

Brighter prospects in Latin America

11 February 2019

Aberdeen Latin American Income Fund (ALAI) gives investors exposure to both Latin American equities and government debt, and offers a 4.9% dividend yield. The company is managed by Aberdeen Standard Investments’ (ASI) global emerging markets equities and emerging market debt teams. They are cautiously optimistic on the prospects for Latin America in 2019 (favouring the region above other emerging markets), following a series of headwinds in 2018, including a stronger US dollar, rising interest rates, commodity price volatility and a number of important elections. The managers note that commodity prices are stabilising, there is potential for a weaker US currency as the benefits from stimuli and tax cuts fade, and inflation in Latin America is moderating so central banks are more dovish. An improving economic environment in Brazil could contribute towards more robust earnings estimates and higher equity valuations in the region. MORE »