At close Sep 15, 2014
The NAV information is provided by the Fund's accounting agent. The price is as reported by the exchange on which the Fund trades. This information is unaudited and neither Aberdeen Asset Management PLC, its wholly owned subsidiaries, the Funds, nor any other person guarantees their accuracy.
If you require further information on any of our Closed-End Funds:
Aberdeen Latin America Equity Fund, Inc. (NYSE MKT: LAQ)
The Fund seeks long-term capital appreciation by investing primarily in Latin American equity securities.
For more detailed information on the specific risks associated with this fund, please view the Important Risk Considerations tab.
It is the policy of the Fund to invest its assets in Latin American equity securities. For these purposes, “Latin American equity securities” are equity securities of companies organized in a country in Latin America or for which the principal trading market is in Latin America.
The information contained above provides only a brief summary description of the Fund's investment objective and investment policies.
Fund Manager Interview
Fiona Manning, Senior Investment Manager on the Global Emerging Market Equities team at Aberdeen, discusses Latin America and explains why this region provides a wealth of interesting investment opportunities.
Why Latin American Equity
In this installment of our “Reasons Why” series, learn about why we believe Latin American equities are an asset class with a promising future and discover how Aberdeen is positioned to potentially take advantage of this bourgeoning region.
Section 16 Filings
Fund Managers’ Monthly Report
- Latin American equities edged higher in July, although upbeat U.S. gross domestic product (GDP)
growth raised fears of a sooner-than-expected interest rate hike from the U.S. Federal Reserve.
- Argentine stocks rallied before month-end, as investors expected a resolution to its debt
negotiations; however, failed negotiations led to a missed payment to holders of its restructured
bonds on July 30. The MSCI Argentina Index subsequently fell by over 8% in one day.
- Our sole Argentinian holding, steel pipe-maker Tenaris, generates less than 10% of its revenues
domestically, and the devaluation of the Argentine peso has benefited the company by reducing
relative costs and supporting its exports. Cash-generation remains robust, and the company has
no need to seek further financing. Management is upbeat about 2015, citing an improved pricing
environment in the U.S. and a clearer outlook for energy reform in Mexico.*
- Second-quarter results were generally resilient. In Mexico, supermarket chain operator Soriana’s
profits generally beat expectations, despite slower same-store sales. Good cost controls helped
Mexican beverage company Femsa weather weak demand and the new tax on soft drinks, but
lower income from its stake in brewer Heineken hurt profits. In Brazil, miner Vale, retailer Lojas
Renner and mall operator Multiplan performed well, but beverage company Ambev disappointed
due to increased costs and a product mix skewed towards those with lower margins.
- In July, we pared the Fund’s holding in Petrobras after a run-up in its share price. We added to
positions in beverage company Femsa and construction and engineering firm Grana y Montero
following a period of share price weakness.
Forecasts are offered as opinion and are not reflective of potential performance, are not guaranteed and actual events or results may differ materially.
The MSCI Argentina Index measures the performance of large and mid-cap segments of the Argentine market.
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