Richard Prosser

The fund has also reported that its total dividends per share paid 3.5p (2018: 3.5p).

During the year the allocation between equities and bonds was further adjusted with the portfolio composition being 59.1% equities and 40.9% bonds at the period end, as the Investment Manager continued to seek to exploit market opportunities (2018: 52.5% equities 47.5% bonds).

Richard Prosser, chairman of Aberdeen Latin American Income Fund, said: “I remain optimistic about the outlook for Latin American equities amid encouraging regional developments.

“Mexico was the first country to ratify the USMCA trade agreement - its final approval by the US and Canada could boost sentiment. Moreover, investors remain optimistic that Brazil’s pension reform bill will be approved. President Jair Bolsonaro’s administration has shown resolve in pushing for fiscal and structural changes. Such reforms, along with lower interest rates, are expected to attract investments and create jobs, which should fuel the economy.

“However, there is some room for caution amid weak global economic conditions and the ongoing trade war. As such, lower demand globally could also result in a further decline in commodity prices.

“In Mexico, investors remain watchful over political developments with particular focus on the current administration’s economic policies, and its stance towards the private sector. Meanwhile, Argentina’s outlook remains uncertain as it focuses on stabilising the exchange rate and reducing inflation, while restructuring its debt.”

Mr Prosser added: “Despite the challenges, I am confident that your manager’s investment approach and on-the-ground presence should aid selection of high-quality investments with strong pricing power and solid fundamentals.

“These investments are less exposed to risks and tap into the more resilient segments of the economy. Our aim is to invest in companies which will deliver robust, risk-adjusted returns over the long-term. Your Manager will continue to take advantage of market weakness to add to high-conviction holdings or introduce new names at attractive valuations.”