abrdn Latin American Income Fund

Investment summary

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.