REG - Aberdeen Emerg IncCo - Final Results <Origin Href="QuoteRef">AEMC.L</Origin> - Part 2
19/02/2018 17:15
- Part 2: For the preceding part double click ID:nRSS3153Fa
Year ended 31 October Year ended 31 October
2017 2016
£'000 £'000
Cash flows from operating activities
Cash inflow from investment income and bank interest 3,544 2,642
Cash outflow from management expenses (3,522) (2,685)
Cash inflow from disposal of investments* 75,404 90,430
Cash outflow from purchase of investments* (93,478) (89,591)
Cash outflow from taxation (141) (136)
Net cash flow (used in)/from operating activities (18,193) 660
Cash flows from financing activities
Proceeds from bank borrowings 25,000 -
Borrowing commitment fee and interest charges (155) (46)
Dividend paid (2,560) -
Share buy backs (2,910) (885)
Net cash flow from/(used in) financing activities 19,375 (931)
Net increase/(decrease) in cash and cash equivalents 1,182 (271)
Effect of foreign exchange 122 385
Cash and cash equivalents at 1 November 2,110 1,996
Cash and cash equivalents at 31 October 3,414 2,110
The notes form part of these financial statements.
*Receipts from the disposal and purchase of investments have been classified
as components of cash flows from operating activities because they form part
of the Company's operating activities.
NOTES
For the year ended 31 October 2017
1. REPORTING ENTITY
Aberdeen Emerging Markets Investment Company Limited (the "Company") is a
closed-ended investment company, registered in Guernsey on 16 September 2009.
The Company's registered office is 11 New Street, St Peter Port, Guernsey, GY1
2PF. The Company's shares have a premium listing on the London Stock Exchange
and commenced trading on 10 November 2009. The Company changed its name to
Aberdeen Emerging Markets Investment Company Limited on 14 April 2016. The
financial statements of the Company are presented for the year ended 31
October 2017.
The Company invests in a portfolio of funds and products which give
diversified exposure to developing and emerging markets economies with the
objective of achieving consistent returns for shareholders in excess of the
MSCI Emerging Markets Net Total Return Index in Sterling terms.
Investment Manager
The investment activities of the Company were managed by Aberdeen Fund
Managers Limited ('AFML') during the year ended 31 October 2017.
Non-mainstream pooled investments ("NMPIs")
The Company currently conducts its affairs so that the shares issued by the
Company can be recommended by Independent Financial Advisers to ordinary
retail investors in accordance with the Financial Conduct Authority's rules in
relation to NMPIs and intends to continue to do so for the foreseeable
future.
2. BASIS OF PREPARATION
(a) Statement of compliance
The financial statements, which give a true and fair view, have been prepared
in accordance with International Financial Reporting Standards ("IFRS") and
are in compliance with The Companies (Guernsey) Law, 2008. There were no
changes in the accounting policies of the Company in the year to 31 October
2017.
Where presentational guidance set out in the Statement of Recommended Practice
("SORP") for Investment Companies issued by the Association of Investment
Companies ("AIC") in November 2014 and updated in January 2017 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.
The total column of the Statement of Comprehensive Income is the profit or
loss account of the Company. The "Capital" and "Revenue" columns provide
supplementary information.
The financial statements were approved and authorised for issue by the Board
on 19 February 2018.
This report will be sent to shareholders and copies will be made available to
the public at the Company's registered office. It will also be made available
on the Company's website: aberdeenemergingmarkets.co.uk
(b) Going concern
The directors have adopted the going concern basis in preparing the financial
statements. The Board formally considered the Company's going concern status
at the time of the publication of these financial statements and a summary of
the assessment is provided below.
The Company will put forward a resolution for its continuation at the Annual
General Meeting on 12 April 2018. Following consultations with shareholders
the directors have a reasonable expectation that the continuation vote will be
passed. The financial statements have therefore been prepared on the basis
that the continuation vote will be passed by shareholders. If the resolution
is not passed, then within four months of the vote to continue failing the
directors will be required to formulate and put to shareholders proposals
relating to the future of Company, having had regard to, inter alia,
prevailing market conditions and the applicable regulations and legislation.
The directors have a reasonable expectation that the continuation vote will be
passed and that the Company has adequate operational resources to continue in
operational existence for at least twelve months from the date of approval of
this document. In reaching this conclusion, the directors have considered the
liquidity of the Company's portfolio of investments as well as its cash
position, income and expense flows. As at 31 October 2017, the Company held
£3.4 million in cash and £383.3 million in investments. It is estimated that
approximately 60% of the investments held at the year end could be realised in
one month. The total operating expenses for the year ended 31 October 2017
were £3.6 million, which represented approximately 1.07% of average net assets
during the year. At the date of approval of this document, based on the
aggregate of investments and cash held, the Company has substantial operating
expenses cover.
The Company has a £25 million loan facility with RBS which matures on 31 March
2018. The Company has commenced discussions with RBS and the Board expects to
renew the facility on similar terms when it matures.
The directors are satisfied that it is appropriate to adopt the going concern
basis in preparing the financial statements and, after due consideration, the
directors consider that the Company is able to continue for a period of at
least twelve months from the date of approval of the financial statements.
(c) Basis of measurement
The financial statements have been prepared on the historical cost basis
except for investments held through profit or loss which are measured at fair
value.
(d) Functional and presentation currency
The Company's investments are denominated in multiple currencies. However,
the Company's shares are issued in GBP sterling and the majority of its
investors are UK based. Therefore, the financial statements are presented in
Sterling, which is the Company's functional currency. All financial
information presented in GBP sterling has been rounded to the nearest thousand
pounds.
(e) Capital reserve
Profits achieved by selling investments and changes in fair value arising upon
the revaluation of investments that remain in the portfolio are all charged to
profit or loss in the capital column of the Statement of Comprehensive Income
and allocated to the capital reserve.
(f) Revenue reserve
The balance of all items allocated to the revenue column of the Statement of
Comprehensive Income in each year is transferred to the Company's revenue
reserve.
(g) Use of estimates, assumptions and judgements
The preparation of the financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these
estimates.
Use of estimates and assumptions
Estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements are described
below.
Classification and valuation of investments
Investments are designated as fair value through profit or loss on initial
recognition and are subsequently measured at fair value. The valuation of
such investments requires estimates and assumptions made by the management of
the Company depending on the nature of the investments as described in note 3
(a) and fair value may not represent actual realisable value for those
investments.
Allocation of investments to fair value hierarchy
IFRS 13 requires the Company to measure fair value using the following fair
value hierarchy that reflects the significance of the inputs used in making
the measurements. IFRS 13 establishes a fair value hierarchy that prioritises
the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). The three levels of fair value
hierarchy under IFRS 13 are as follows:
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 asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices); and
Level 3 - inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement in its entirety. For
this purpose, the significance of an input is assessed against the fair value
measurement in its entirety. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that
measurement is a Level 3 measurement. Assessing the significance of a
particular input to the fair value measurement in its entirety requires
judgement, considering factors specific to the asset or liability.
Use of judgements
The determination of what constitutes 'observable' requires significant
judgement by the Company. The Company considers observable data to be that
market data that is readily available, regularly distributed or updated,
reliable and verifiable, not proprietary and provided by independent sources
that are actively involved in the relevant market.
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Investments
As the Company's business is investing in financial assets with a view to
profiting from their total return in the form of increases in fair value,
financial assets are designated as fair value through profit or loss on
initial recognition. These investments are recognised on the trade date of
their acquisition at which the Company becomes a party to the contractual
provisions of the instrument. At this time, the best evidence of the fair
value of the financial assets is the transaction price. Transaction costs
that are directly attributable to the acquisition or issue of the financial
assets are charged to profit or loss in the Statement of Comprehensive Income
as a capital item. Subsequent to initial recognition, investments designated
as fair value through profit or loss are measured at fair value with changes
in their fair value recognised in profit or loss in the Statement of
Comprehensive Income and determined by reference to:
i) investments quoted or dealt on recognised stock exchanges in an active
market are valued by reference to their market bid prices;
ii) investments other than those in i) above which are dealt on a trading
facility in an active market are valued by reference to broker bid price
quotations, if available, for those investments;
iii) investments in underlying funds, which are not quoted or dealt on a
recognised stock exchange or other trading facility or in an active market,
are valued at the net asset values provided by such entities or their
administrators. These values may be unaudited or may themselves be estimates
and may not be produced in a timely manner. If such information is not
provided, or is insufficiently timely, the Investment Manager uses appropriate
valuation techniques to estimate the value of investments. In determining fair
value of such investments, the Investment Manager takes into consideration the
relevant issues, which may include the impact of suspension, redemptions,
liquidation proceedings and other significant factors. Any such valuations are
assessed and approved by the directors. The estimates may differ from actual
realisable values;
iv) investments which are in liquidation are valued at the estimate of their
remaining realisable value; and
v) any other investments are valued at the directors' best estimate of fair
value.
Transfers between levels of the fair value hierarchy are recognised as at the
end of the reporting period during which the change has occurred.
Investments are derecognised on the trade date of their disposal, which is the
point where the Company transfers substantially all the risks and rewards of
the ownership of the financial asset. Gains or losses are recognised in
profit or loss in the capital column of the Statement of Comprehensive Income.
The Company uses the weighted average cost method to determine realised gains
and losses on disposal of investments.
(b) Foreign currency
Transactions in foreign currencies are translated into Sterling at the
exchange rate at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated into
Sterling at the spot exchange rate at that date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value
through profit or loss are retranslated into Sterling at the exchange rate at
the date that the fair value was determined. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign
currency are translated into Sterling using the exchange rate at the date of
the transaction.
Foreign currency differences arising on retranslation are recognised in profit
or loss and, depending on the nature of the gain or loss, are allocated to the
revenue or capital column of the Statement of Comprehensive Income. Foreign
currency differences on retranslation of financial instruments designated as
fair value through profit or loss are shown in the "Gains on currency
movements" line.
(c) Income from investments
Dividend income is recognised when the right to receive it is established and
is reflected in the Statement of Comprehensive Income as Investment Income in
the revenue column. For quoted equity securities this is usually on the basis
of ex-dividend dates. For unquoted investments this is usually on the
entitlement date confirmed by the relevant holding. Income from bonds is
accounted for using the effective interest method.
Special dividends and distributions described as capital distributions are
assessed on their individual merits and may be credited to the capital reserve
if considered to be closely linked to reconstructions of the investee company
or other capital transactions. Bank interest receivable is accounted for on a
time apportionment basis and is based on the prevailing variable interest
rates for the Company's bank accounts.
(d) Treasury shares
Where the Company purchases its own share capital, the consideration paid,
which includes any directly attributable costs, is recognised as a deduction
from equity shareholders' funds through the Company's reserves. When such
shares are subsequently sold or re-issued to the market any consideration
received, net of any directly attributable incremental transaction costs, is
recognised as an increase in equity shareholders' funds through the share
capital account. Shares held in treasury are excluded from calculations when
determining NAV per share.
(e) Cash and cash equivalents
Cas- Part 2: For the preceding part double click ID:nRSS3153Fa
recommendations of the
SORP.
The total column of the Statement of Comprehensive Income is the profit or
loss account of the Company. The "Capital" and "Revenue" columns provide
supplementary information.
The financial statements were approved and authorised for issue by the Board
on 19 February 2018.
This report will be sent to shareholders and copies will be made available to
the public at the Company's registered office. It will also be made available
on the Company's website: aberdeenemergingmarkets.co
(http://www.aberdeenemergingmarkets.co) .uk
(b) Going concern
The directors have adopted the going concern basis in preparing the financial
statements. The Board formally considered the Company's going concern status
at the time of the publication of these financial statements and a summary of
the assessment is provided below.
The Company will put forward a resolution for its continuation at the Annual
General Meeting on 12 April 2018. Following consultations with shareholders
the directors have a reasonable expectation that the continuation vote will be
passed. The financial statements have therefore been prepared on the basis
that the continuation vote will be passed by shareholders. If the resolution
is not passed, then within four months of the vote to continue failing the
directors will be required to formulate and put to shareholders proposals
relating to the future of Company, having had regard to, inter alia,
prevailing market conditions and the applicable regulations and legislation.
The directors have a reasonable expectation that the continuation vote will be
passed and that the Company has adequate operational resources to continue in
operational existence for at least twelve months from the date of approval of
this document. In reaching this conclusion, the directors have considered the
liquidity of the Company's portfolio of investments as well as its cash
position, income and expense flows. As at 31 October 2017, the Company held
£3.4 million in cash and £383.3 million in investments. It is estimated that
approximately 60% of the investments held at the year end could be realised in
one month. The total operating expenses for the year ended 31 October 2017
were £3.6 million, which represented approximately 1.07% of average net
assets during the year. At the date of approval of this document, based on the
aggregate of investments and cash held, the Company has substantial operating
expenses cover.
The Company has a £25 million loan facility with RBS which matures on 31
March 2018. The Company has commenced discussions with RBS and the Board
expects to renew the facility on similar terms when it matures.
The directors are satisfied that it is appropriate to adopt the going concern
basis in preparing the financial statements and, after due consideration, the
directors consider that the Company is able to continue for a period of at
least twelve months from the date of approval of the financial statements.
(c) Basis of measurement
The financial statements have been prepared on the historical cost basis
except for investments held through profit or loss which are measured at fair
value.
(d) Functional and presentation currency
The Company's investments are denominated in multiple currencies. However,
the Company's shares are issued in GBP sterling and the majority of its
investors are UK based. Therefore, the financial statements are presented in
Sterling, which is the Company's functional currency. All financial
information presented in GBP sterling has been rounded to the nearest thousand
pounds.
(e) Capital reserve
Profits achieved by selling investments and changes in fair value arising upon
the revaluation of investments that remain in the portfolio are all charged to
profit or loss in the capital column of the Statement of Comprehensive Income
and allocated to the capital reserve.
(f) Revenue reserve
The balance of all items allocated to the revenue column of the Statement of
Comprehensive Income in each year is transferred to the Company's revenue
reserve.
(g) Use of estimates, assumptions and judgements
The preparation of the financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these
estimates.
Use of estimates and assumptions
Estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements are described
below.
Classification and valuation of investments
Investments are designated as fair value through profit or loss on initial
recognition and are subsequently measured at fair value. The valuation of
such investments requires estimates and assumptions made by the management of
the Company depending on the nature of the investments as described in note 3
(a) and fair value may not represent actual realisable value for those
investments.
Allocation of investments to fair value hierarchy
IFRS 13 requires the Company to measure fair value using the following fair
value hierarchy that reflects the significance of the inputs used in making
the measurements. IFRS 13 establishes a fair value hierarchy that prioritises
the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). The three levels of fair value
hierarchy under IFRS 13 are as follows:
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 asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices); and
Level 3 - inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement in its entirety. For
this purpose, the significance of an input is assessed against the fair value
measurement in its entirety. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that
measurement is a Level 3 measurement. Assessing the significance of a
particular input to the fair value measurement in its entirety requires
judgement, considering factors specific to the asset or liability.
Use of judgements
The determination of what constitutes 'observable' requires significant
judgement by the Company. The Company considers observable data to be that
market data that is readily available, regularly distributed or updated,
reliable and verifiable, not proprietary and provided by independent sources
that are actively involved in the relevant market.
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Investments
As the Company's business is investing in financial assets with a view to
profiting from their total return in the form of increases in fair value,
financial assets are designated as fair value through profit or loss on
initial recognition. These investments are recognised on the trade date of
their acquisition at which the Company becomes a party to the contractual
provisions of the instrument. At this time, the best evidence of the fair
value of the financial assets is the transaction price. Transaction costs
that are directly attributable to the acquisition or issue of the financial
assets are charged to profit or loss in the Statement of Comprehensive Income
as a capital item. Subsequent to initial recognition, investments designated
as fair value through profit or loss are measured at fair value with changes
in their fair value recognised in profit or loss in the Statement of
Comprehensive Income and determined by reference to:
i) investments quoted or dealt on recognised stock exchanges in an active
market are valued by reference to their market bid prices;
ii) investments other than those in i) above which are dealt on a trading
facility in an active market are valued by reference to broker bid price
quotations, if available, for those investments;
iii) investments in underlying funds, which are not quoted or dealt on a
recognised stock exchange or other trading facility or in an active market,
are valued at the net asset values provided by such entities or their
administrators. These values may be unaudited or may themselves be estimates
and may not be produced in a timely manner. If such information is not
provided, or is insufficiently timely, the Investment Manager uses appropriate
valuation techniques to estimate the value of investments. In determining fair
value of such investments, the Investment Manager takes into consideration the
relevant issues, which may include the impact of suspension, redemptions,
liquidation proceedings and other significant factors. Any such valuations are
assessed and approved by the directors. The estimates may differ from actual
realisable values;
iv) investments which are in liquidation are valued at the estimate of their
remaining realisable value; and
v) any other investments are valued at the directors' best estimate of fair
value.
Transfers between levels of the fair value hierarchy are recognised as at the
end of the reporting period during which the change has occurred.
Investments are derecognised on the trade date of their disposal, which is the
point where the Company transfers substantially all the risks and rewards of
the ownership of the financial asset. Gains or losses are recognised in
profit or loss in the capital column of the Statement of Comprehensive Income.
The Company uses the weighted average cost method to determine realised gains
and losses on disposal of investments.
(b) Foreign currency
Transactions in foreign currencies are translated into Sterling at the
exchange rate at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are retranslated into
Sterling at the spot exchange rate at that date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value
through profit or loss are retranslated into Sterling at the exchange rate at
the date that the fair value was determined. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign
currency are translated into Sterling using the exchange rate at the date of
the transaction.
Foreign currency differences arising on retranslation are recognised in profit
or loss and, depending on the nature of the gain or loss, are allocated to the
revenue or capital column of the Statement of Comprehensive Income. Foreign
currency differences on retranslation of financial instruments designated as
fair value through profit or loss are shown in the "Gains on currency
movements" line.
(c) Income from investments
Dividend income is recognised when the right to receive it is established and
is reflected in the Statement of Comprehensive Income as Investment Income in
the revenue column. For quoted equity securities this is usually on the basis
of ex-dividend dates. For unquoted investments this is usually on the
entitlement date confirmed by the relevant holding. Income from bonds is
accounted for using the effective interest method.
Special dividends and distributions described as capital distributions are
assessed on their individual merits and may be credited to the capital reserve
if considered to be closely linked to reconstructions of the investee company
or other capital transactions. Bank interest receivable is accounted for on a
time apportionment basis and is based on the prevailing variable interest
rates for the Company's bank accounts.
(d) Treasury shares
Where the Company purchases its own share capital, the consideration paid,
which includes any directly attributable costs, is recognised as a deduction
from equity shareholders' funds through the Company's reserves. When such
shares are subsequently sold or re-issued to the market any consideration
received, net of any directly attributable incremental transaction costs, is
recognised as an increase in equity shareholders' funds through the share
capital account. Shares held in treasury are excluded from calculations when
determining NAV per share.
(e) Cash and cash equivalents
Cash comprises cash and demand deposits. Cash equivalents, which include bank
overdrafts, are short term, highly liquid investments that are readily
convertible to known amounts of cash, are subject to insignificant risks of
changes in value, and are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes.
(f) Investment management fees and finance costs
Investment management fees and finance costs are charged to the Statement of
Comprehensive Income as a revenue item and are accrued monthly in arrears.
Finance costs include interest payable and direct loan costs.
Performance-related fees, if any, are payable directly by reference to the
capital performance of the Company and are therefore charged to profit or loss
in the Statement of Comprehensive Income as a capital item.
(g) Financial liabilities
Financial liabilities (including bank loans) are classified according to the
substance of the contractual arrangements entered into. Financial liabilities
at fair value through profit or loss are measured initially at fair value,
with transaction costs recognised in profit or loss in the Statement of
Comprehensive Income.
(h) Taxation
The Company has exempt status under the Income Tax (Exempt Bodies) (Guernsey)
Ordinance 1989 and is charged an annual exemption fee of £1,200 (2016:
£1,200).
Dividend and interest income received by the Company may be subject to
withholding tax imposed in the country of origin. The tax charges shown in
profit or loss in the Statement of Comprehensive Income relate to overseas
withholding tax on dividend income.
(i) Operating segments
IFRS 8, 'Operating segments' requires a 'management approach', under which
segment information is presented on the same basis as that used for internal
reporting purposes. The Board, as a whole, has been determined as constituting
the chief operating decision maker of the Company. The Board has considered
the requirements of the standard and is of the view that the Company is
engaged in a single segment of business, which is investing in a portfolio of
funds and products which give exposure to developing and emerging market
economies. The key measure of performance used by the Board is the Net Asset
Value of the Company (which is calculated under IFRS). Therefore no
reconciliation is required between the measure of profit or loss used by the
Board and that contained in the financial statements.
(j) Offsetting
Financial assets and liabilities are offset and the net amount presented in
the Statement of Financial Position when, and only when, the Company has a
legal right to set off the recognised amounts and it intends to either settle
on a net basis or to realise the asset and settle the liability
simultaneously.
Income and expenses are only presented on a net basis when permitted under
IFRS.
(k) Structured entities
A structured entity is an entity that has been designed so that voting or
similar rights are not the dominant factor in deciding who controls the
entity, such as when any voting rights relate to administrative tasks only and
the relevant activities are directed by means of contractual arrangements. A
structured entity often has some or all of the following features or
attributes; (a) restricted activities, (b) a narrow and well-defined
objective, such as to provide investment opportunities for investors by
passing on risks and rewards associated with the assets of the structured
entity to investors, (c) insufficient equity to permit the structured entity
to finance its activities without subordinated financial support and (d)
financing in the form of multiple contractually linked instruments to
investors that create concentrations of credit or other risks.
The Company holds shares, units or partnership interests in the funds or
investment products held in the Company's portfolio. The Company does not
consider its investments in listed funds to be structured entities but does
consider its investments in unlisted funds to be investments in structured
entities because the voting rights in such entities are limited to
administrative tasks and are not the dominant factor in deciding who controls
those entities.
Changes in fair value of investments, including structured entities, are
included in profit or loss in the Statement of Comprehensive Income.
(l) Dividend payable
Final dividends payable to equity shareholders are recognised in the financial
statements when they have been approved by shareholders and become a liability
of the Company. Interim dividends payable are recognised in the period in
which they are paid.
(m) New standards and interpretations effective in the current financial
year
In the opinion of the directors, there are no new standards that became
effective during the year that had a material impact on the financial
statements.
At the date of approval of these financial statements, the following standard,
which has not been applied in these financial statements, was in issue but not
yet effective:
• IFRS 9, 'Financial instruments', effective for annual periods beginning on
or after 1 January 2018, specifies how an entity should classify and measure
financial assets and liabilities, including some hybrid contracts. The
standard improves and simplifies the approach for classification and
measurement of financial assets compared with the requirements of IAS 39. Most
of the requirements in IAS 39 for classification and measurement of financial
liabilities were carried forward unchanged. The standard applies a consistent
approach to classifying financial assets and replaces the numerous categories
of financial assets in IAS 39, each of which had its own classification
criteria.
• IAS 7 'Statement of Cash Flows', was amended by The International
Accounting Standards Board ('IASB') with the intention to clarify IAS 7 to
improve information provided to users of financial statements about an
entity's financing activities. They are effective for annual periods beginning
on or after 1 January 2017, with earlier application being permitted.
The Board is currently considering the impact of the above standard. Based on
the initial assessment, the standard is not expected to have a material impact
on the Company's financial statements.
4. INVESTMENT INCOME
2017 2016
£'000 £'000
Dividends from UK Investments 2,747 1,328
Dividends from Overseas Investments 753 1,464
Total dividend income 3,500 2,792
5. INVESTMENT MANAGEMENT FEES AND OTHER EXPENSES
2017 2016
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment management fees 2,695 - 2,695 2,107 - 2,107
Administration fees 178 - 178 176 - 176
Depositary and custody service fees 134 - 134 112 - 112
Registration fees 37 - 37 29 - 29
Directors' fees 135 - 135 133 - 133
Auditor's fees:
Audit services 39 - 39 39 - 39
Non-audit services 14 - 14 14 - 14
Marketing fees 179 - 179 61 - 61
Broker fees 40 - 40 40 - 40
Miscellaneous expenses 101 - 101 132 - 132
Total other expenses 857 - 857 736 - 736
Total expenses 3,552 - 3,552 2,843 - 2,843
Investment management fees
Details of the investment management fee and agreement are provided below.
The Investment Management Agreement is terminable by either party thereto on
not less than six months' written notice at any time, subject to earlier
termination in certain circumstances including certain breaches or the
insolvency of either party.
The Investment Manager is entitled to receive from the Company for its
services as Investment Manager a basic fee and, in certain circumstances, a
performance fee.
· Basic fee
The Company's basic management fee for the year ended 31 October 2017 was
charged at an annualised rate of 1.0% of adjusted market capitalisation,
reduced by the proportion of the Company's net assets invested in funds which
are managed by Aberdeen Standard Investments ("Aberdeen Funds"). The
Investment Management Agreement, in respect of the year ended 31 October 2017,
defines the "Company's Adjusted Market Capitalisation" as the aggregate
closing mid-market price of the ordinary shares on the last business day of
the month or part of a month for which the basic fee is being calculated plus
the aggregate amount, if any, paid by the Company in purchasing its own
ordinary shares at a discount in the twelve month period ending on such
business day.
On 25 July 2017 the Company announced that with effect from 1 November 2017
(the commencement of the Company's financial year ending 31 October 2018) the
annual management fee will decrease to an annualised rate of 0.8% of net
assets, reduced in the same manner for any investments in Aberdeen Funds.
The basic fee is payable monthly in arrears (and pro rata for part of any
month during which the investment management agreement is in force).
· Performance fee
The Investment Manager may receive, in addition to the basic fee, a
performance fee in respect of each Relevant Period ending 31 October. It is
based on the outperformance of NAV per share (before deducting the performance
fee) over the Benchmark NAV per share. The Benchmark NAV per share is the Base
NAV per share for the Relevant Period, increased or reduced by the percentage,
if any, by which the MSCI Emerging Markets Net Total Return Index in Sterling
terms (Bloomberg ticker: NDUEEGF Index) has increased or reduced over the
Relevant Period. The Base NAV is the NAV at the commencement of business on
the first day of such Relevant Period.
As at 31 October 2017 the NAV per share was 706.04p (2016: 618.79p). The
performance fee is 10% of the outperformance of the NAV per share over the
Benchmark NAV per share, provided that the NAV per ordinary share has
increased since the end of the last period where a performance fee was
payable, i.e. the High Water Mark of 559.24p per share (2016: 559.24p). The
performance fee calculation is based on figures taken from the audited
financial statements.
The performance fee in respect of a particular Relevant Period will not exceed
2% of the Company's Net Asset Value at the close of business on the final
Business Day of the Relevant Period to which such fees relate. There was no
performance fee in the current year (2016: nil).
As explained in the Chairman's Statement, the performance fee arrangements
have been removed with effect from 1 November 2017.
Company Secretary and Administrator fees
Vistra Fund Services (Guernsey) Limited ("Vistra") is appointed as
Administrator and Secretary to the Company. Vistra is appointed under a
contract subject to ninety days' written notice and receives a fee at a rate
of £40,000 per annum plus certain additional fees, as well as the fees
payable to the UK Administration Agent.
UK Administration agent fees
PraxisIFM Fund Services (UK) Limited ("PraxisIFM") is appointed by Vistra to
act as administration agent in the United Kingdom. PraxisIFM is appointed
under a contract subject to not less than ninety days' notice. The UK
Administration Agent receives from the Administrator a monthly fee equal to
one twelfth of 0.1% of Net Asset Value subject to a maximum fee for the year
ended 31 October 2017 of £138,360 (2016: £135,591) per annum. The maximum
fee is increased annually, in November, by the change in the UK Retail Price
Index (all items) over the preceding 12 months.
Depositary services and custodian fees
Northern Trust (Guernsey) Limited, receives fees for depositary services
calculated at the rate of 2.95 basis points per annum subject to a minimum
annual fee of £60,000. Northern Trust (Guernsey) Limited also receives a
fee for custody services comprising an account fee of £2,500 per account per
annum, principal/income split of £1,250 per account per annum and single line
items (unit trust) reporting of £500 per line per annum. It also receives an
asset based fee equal to between 1.00 basis points and 40.00 basis points of
the value of the assets of the Company. Transaction based fees are also
payable of between £10 and £125 per transaction. The variable fees are
dependent on the countries in which the individual holdings are registered.
The Company's ongoing charges for the year ended 31 October 2017, calculated
using the Association of Investment Companies methodology were 1.07% (2016:
1.10%).
6. BANK LOAN / FINANCE COSTS
During the year the overdraft facility with the Northern Trust Company was
terminated. In March 2017 the Company entered into a one year £25,000,000
unsecured revolving credit facility with RBS. At the year end, an amount of
£25,000,000 was drawn down at an all-in rate of 0.82838% per annum. This draw
down matured on 29 November 2017 and was subsequently rolled over at an all-in
rate of 1.06125% per annum maturing on 31 March 2018.
2017 2016
£'000 £'000
Interest payable 110 31
Facility and arrangement fees and other charges 45 15
Total finance costs 155 46
At 31 October 2017, interest payable of £35,000 (2016: nil) was accrued in
the Statement of Financial Position.
7. EARNINGS PER SHARE
Earnings per share is based on the total comprehensive income for the year
ended 31 October 2017, being a gain of £46,726,000 (2016: £85,601,000)
attributable to the weighted average of 51,346,725(2016: 51,904,033) ordinary
shares in issue (excluding shares held in treasury) in the year ended 31
October 2017.
Supplementary information is provided as follows: revenue per share is based
on the net revenue loss of £348,000 (2016: £233,000) and capital earnings
per share is based on the net capital gain of £47,074,000 (2016:
£85,834,000) attributable to the above ordinary shares.
8. DIVIDENDS PAID
The dividends in respect of the year ended 31 October 2017 are detailed below:
Dividend type Pence per ordinary Share Capital reserve £'000 Revenue reserve £'000
First interim dividend 5.0 2,560 -
Second interim dividend* 5.0 2,560 -
*Not included as a liability in the accounts for the year ended 31 October
2017 as it was declared and paid after the year end.
9. SHARE CAPITAL
For the year ended 31 October 2017 Authorised Ordinary shares of 1 p nominal value £'000 Allotted, issued and fully paid Ordinary shares with voting rights (excluding treasury shares) Treasury shares
Opening number of shares Unlimited 546 54,618,507 51,748,179 2,870,328
Purchase of own shares - - - (551,450) 551,450
Closing number of shares Unlimited 546 54,618,507 51,196,729 3,421,778
For the year ended 31 October 2016 Authorised Ordinary shares of 1 p nominal value £'000 Allotted, issued and fully paid Ordinary shares with voting rights (excluding treasury shares) Treasury shares
Opening number of shares Unlimited 546 54,618,507 51,926,229 2,692,278
Purchase of own shares - - - (178,050) 178,050
Closing number of shares Unlimited 546 54,618,507 51,748,179 2,870,328
Purchases of own shares
There were 551,450 (2016: 178,050) ordinary shares re-purchased during the
year at an aggregate cost to the Company of £2,910,000 (2016: £885,000), all
of which are held in treasury.
Share capital account
The aggregate balance (including share premium) standing to the credit of the
share capital account at 31 October 2017 was £183,930,000 (2016:
£186,840,000).
Ordinary shares
Voting rights
Holders of ordinary shares are entitled to attend, speak and vote at general
meetings of the Company. Each ordinary share (excluding shares in treasury)
carries one vote. Treasury shares do not carry voting rights.
Dividends
The holders of ordinary shares are entitled to such dividend as maybe declared
by the Company from time to time. Shares held in treasury do not receive
dividends.
Capital entitlement
On a winding up, the ordinary shares (excluding treasury shares) shall rank
pari passu for the nominal capital paid up thereon and in respect of any
surplus. Shares held in treasury have no capital entitlement on a winding up
of the Company.
10. NET ASSET VALUE PER SHARE
Net assets per share is based on net assets of £361,471,000 (2016:
£320,215,000) divided by 51,196,729 (2016: 51,748,179) shares in issue
(excluding shares held in treasury) at the Statement of Financial Position
date.
The below table is a reconciliation between the NAV per share announced on the
London Stock Exchange and the NAV per share disclosed in these Financial
Statements.
2017 2016
£'millions pence £'millions pence
NAV per share as at the financial year end as published on 1 November 2017 361.5 706.18 320.1 618.58
(2016: as published on 1 November 2016)
- (0.14) 0.1 0.21
Revaluation adjustments - late prices
NAV per share as disclosed in these Financial Statements 361.5 706.04 320.2 618.79
11. RELATED PARTY DISCLOSURES
Investment Manager
Investment management fees payable are shown in profit or loss in the
Statement of Comprehensive Income. As at 31 October 2017, no performance fee
accrual has been made (2016: £nil).
At 31 October 2017, investment management fees of £255,000 (2016: £213,025)
were accrued in the statement of financial position. Total investment
management fees for the year were £2,694,944 (2016: £2,107,317).
Funds held at 31 October 2017 which are managed by the Standard Life Aberdeen
plc group
As at 31 October 2017, the Company held investments in Aberdeen Asian Smaller
Companies Investment Trust PLC, Aberdeen Latin American Equity Fund Inc and
Edinburgh Dragon Trust PLC. The valuation of these holdings at 31 October 2017
totalled £25,722,000.
Directors
Total fees for the Directors in the year ended 31 October 2017 were £135,100
(2016: £133,100).
12. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held at the Company's registered
office on 12 April 2018.
13. FINANCIAL INFORMATION
The Annual Report was approved by the Board of directors on 19 February
2018. The information in this announcement has been extracted from the
annual report on which the Company's auditors have given an unqualified
report. The annual report will be posted to shareholders and will be made
available on the Investment Manager's website at
aberdeenemergingmarkets.co.uk. It will also be available from the registered
office of Company and the UK Administration Agent.
This announcement contains regulated information under the Disclosure Guidance
and Transparency Rules of the FCA.
A copy of the annual report will be submitted to the National Storage
Mechanism and will shortly be available at:
http://www.morningstar.co.uk/uk/NSM (http://www.morningstar.co.uk/uk/NSM)
Registered office
11 New Street
St Peter Port
Guernsey GY1 2PF
Enquiries:
Aberdeen Fund Managers Limited (Investment Manager to Aberdeen Emerging
Markets Investment Company Limited)
Andrew Lister / Bernard Moody Tel: +44 (0)20 7618 1440
Stockdale Securities Limited (Financial adviser and stockbroker)
Robert Finlay Tel: +44 (0)20 7601 6115
Vistra Fund Services (Guernsey) Limited (Company Secretary)
Lia Rihoy Tel: +44 (0)1481 754147
PraxisIFM Fund Services (UK) Limited (UK Administration Agent)
Anthony Lee Tel: +44 (0)20 7653 9690
Ordinary Shares - Listing Category: Premium - Equity Closed-ended Investment
Funds
19 February 2018
END
This information is provided by RNS
The company news service from the London Stock Exchange
h comprises cash and demand deposits. Cash equivalents, which include bank
overdrafts, are short term, highly liquid investments that are readily
convertible to known amounts of cash, are subject to insignificant risks of
changes in value, and are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes.
(f) Investment management fees and finance costs
Investment management fees and finance costs are charged to the Statement of
Comprehensive Income as a revenue item and are accrued monthly in arrears.
Finance costs include interest payable and direct loan costs.
Performance-related fees, if any, are payable directly by reference to the
capital performance of the Company and are therefore charged to profit or loss
in the Statement of Comprehensive Income as a capital item.
(g) Financial liabilities
Financial liabilities (including bank loans) are classified according to the
substance of the contractual arrangements entered into. Financial liabilities
at fair value through profit or loss are measured initially at fair value,
with transaction costs recognised in profit or loss in the Statement of
Comprehensive Income.
(h) Taxation
The Company has exempt status under the Income Tax (Exempt Bodies) (Guernsey)
Ordinance 1989 and is charged an annual exemption fee of £1,200 (2016:
£1,200).
Dividend and interest income received by the Company may be subject to
withholding tax imposed in the country of origin. The tax charges shown in
profit or loss in the Statement of Comprehensive Income relate to overseas
withholding tax on dividend income.
(i) Operating segments
IFRS 8, 'Operating segments' requires a 'management approach', under which
segment information is presented on the same basis as that used for internal
reporting purposes. The Board, as a whole, has been determined as constituting
the chief operating decision maker of the Company. The Board has considered
the requirements of the standard and is of the view that the Company is
engaged in a single segment of business, which is investing in a portfolio of
funds and products which give exposure to developing and emerging market
economies. The key measure of performance used by the Board is the Net Asset
Value of the Company (which is calculated under IFRS). Therefore no
reconciliation is required between the measure of profit or loss used by the
Board and that contained in the financial statements.
(j) Offsetting
Financial assets and liabilities are offset and the net amount presented in
the Statement of Financial Position when, and only when, the Company has a
legal right to set off the recognised amounts and it intends to either settle
on a net basis or to realise the asset and settle the liability
simultaneously.
Income and expenses are only presented on a net basis when permitted under
IFRS.
(k) Structured entities
A structured entity is an entity that has been designed so that voting or
similar rights are not the dominant factor in deciding who controls the
entity, such as when any voting rights relate to administrative tasks only and
the relevant activities are directed by means of contractual arrangements. A
structured entity often has some or all of the following features or
attributes; (a) restricted activities, (b) a narrow and well-defined
objective, such as to provide investment opportunities for investors by
passing on risks and rewards associated with the assets of the structured
entity to investors, (c) insufficient equity to permit the structured entity
to finance its activities without subordinated financial support and (d)
financing in the form of multiple contractually linked instruments to
investors that create concentrations of credit or other risks.
The Company holds shares, units or partnership interests in the funds or
investment products held in the Company's portfolio. The Company does not
consider its investments in listed funds to be structured entities but does
consider its investments in unlisted funds to be investments in structured
entities because the voting rights in such entities are limited to
administrative tasks and are not the dominant factor in deciding who controls
those entities.
Changes in fair value of investments, including structured entities, are
included in profit or loss in the Statement of Comprehensive Income.
(l) Dividend payable
Final dividends payable to equity shareholders are recognised in the financial
statements when they have been approved by shareholders and become a liability
of the Company. Interim dividends payable are recognised in the period in
which they are paid.
(m) New standards and interpretations effective in the current financial
year
In the opinion of the directors, there are no new standards that became
effective during the year that had a material impact on the financial
statements.
At the date of approval of these financial statements, the following standard,
which has not been applied in these financial statements, was in issue but not
yet effective:
• IFRS 9, 'Financial instruments', effective for annual periods beginning on
or after 1 January 2018, specifies how an entity should classify and measure
financial assets and liabilities, including some hybrid contracts. The
standard improves and simplifies the approach for classification and
measurement of financial assets compared with the requirements of IAS 39. Most
of the requirements in IAS 39 for classification and measurement of financial
liabilities were carried forward unchanged. The standard applies a consistent
approach to classifying financial assets and replaces the numerous categories
of financial assets in IAS 39, each of which had its own classification
criteria.
• IAS 7 'Statement of Cash Flows', was amended by The International Accounting
Standards Board ('IASB') with the intention to clarify IAS 7 to improve
information provided to users of financial statements about an entity's
financing activities. They are effective for annual periods beginning on or
after 1 January 2017, with earlier application being permitted.
The Board is currently considering the impact of the above standard. Based on
the initial assessment, the standard is not expected to have a material impact
on the Company's financial statements.
4. INVESTMENT INCOME
2017£'000 2016£'000
Dividends from UK Investments 2,747 1,328
Dividends from Overseas Investments 753 1,464
Total dividend income 3,500 2,792
5. INVESTMENT MANAGEMENT FEES AND OTHER EXPENSES
Revenue 2017Capital Total Revenue 2016Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment management fees 2,695 - 2,695 2,107 - 2,107
Administration fees 178 - 178 176 - 176
Depositary and custody service fees 134 - 134 112 - 112
Registration fees 37 - 37 29 - 29
Directors' fees 135 - 135 133 - 133
Auditor's fees:
Audit services 39 - 39 39 - 39
Non-audit services 14 - 14 14 - 14
Marketing fees 179 - 179 61 - 61
Broker fees 40 - 40 40 - 40
Miscellaneous expenses 101 - 101 132 - 132
Total other expenses 857 - 857 736 - 736
Total expenses 3,552 - 3,552 2,843 - 2,843
Investment management fees
Details of the investment management fee and agreement are provided below.
The Investment Management Agreement is terminable by either party thereto on
not less than six months' written notice at any time, subject to earlier
termination in certain circumstances including certain breaches or the
insolvency of either party.
The Investment Manager is entitled to receive from the Company for its
services as Investment Manager a basic fee and, in certain circumstances, a
performance fee.
· Basic fee
The Company's basic management fee for the year ended 31 October 2017 was
charged at an annualised rate of 1.0% of adjusted market capitalisation,
reduced by the proportion of the Company's net assets invested in funds which
are managed by Aberdeen Standard Investments ("Aberdeen Funds"). The
Investment Management Agreement, in respect of the year ended 31 October 2017,
defines the "Company's Adjusted Market Capitalisation" as the aggregate
closing mid-market price of the ordinary shares on the last business day of
the month or part of a month for which the basic fee is being calculated plus
the aggregate amount, if any, paid by the Company in purchasing its own
ordinary shares at a discount in the twelve month period ending on such
business day.
On 25 July 2017 the Company announced that with effect from 1 November 2017
(the commencement of the Company's financial year ending 31 October 2018) the
annual management fee will decrease to an annualised rate of 0.8% of net
assets, reduced in the same manner for any investments in Aberdeen Funds.
The basic fee is payable monthly in arrears (and pro rata for part of any
month during which the investment management agreement is in force).
· Performance fee
The Investment Manager may receive, in addition to the basic fee, a
performance fee in respect of each Relevant Period ending 31 October. It is
based on the outperformance of NAV per share (before deducting the performance
fee) over the Benchmark NAV per share. The Benchmark NAV per share is the Base
NAV per share for the Relevant Period, increased or reduced by the percentage,
if any, by which the MSCI Emerging Markets Net Total Return Index in Sterling
terms (Bloomberg ticker: NDUEEGF Index) has increased or reduced over the
Relevant Period. The Base NAV is the NAV at the commencement of business on
the first day of such Relevant Period.
As at 31 October 2017 the NAV per share was 706.04p (2016: 618.79p). The
performance fee is 10% of the outperformance of the NAV per share over the
Benchmark NAV per share, provided that the NAV per ordinary share has
increased since the end of the last period where a performance fee was
payable, i.e. the High Water Mark of 559.24p per share (2016: 559.24p). The
performance fee calculation is based on figures taken from the audited
financial statements.
The performance fee in respect of a particular Relevant Period will not exceed
2% of the Company's Net Asset Value at the close of business on the final
Business Day of the Relevant Period to which such fees relate. There was no
performance fee in the current year (2016: nil).
As explained in the Chairman's Statement, the performance fee arrangements
have been removed with effect from 1 November 2017.
Company Secretary and Administrator fees
Vistra Fund Services (Guernsey) Limited ("Vistra") is appointed as
Administrator and Secretary to the Company. Vistra is appointed under a
contract subject to ninety days' written notice and receives a fee at a rate
of £40,000 per annum plus certain additional fees, as well as the fees payable
to the UK Administration Agent.
UK Administration agent fees
PraxisIFM Fund Services (UK) Limited ("PraxisIFM") is appointed by Vistra to
act as administration agent in the United Kingdom. PraxisIFM is appointed
under a contract subject to not less than ninety days' notice. The UK
Administration Agent receives from the Administrator a monthly fee equal to
one twelfth of 0.1% of Net Asset Value subject to a maximum fee for the year
ended 31 October 2017 of £138,360 (2016: £135,591) per annum. The maximum fee
is increased annually, in November, by the change in the UK Retail Price Index
(all items) over the preceding 12 months.
Depositary services and custodian fees
Northern Trust (Guernsey) Limited, receives fees for depositary services
calculated at the rate of 2.95 basis points per annum subject to a minimum
annual fee of £60,000. Northern Trust (Guernsey) Limited also receives a fee
for custody services comprising an account fee of £2,500 per account per
annum, principal/income split of £1,250 per account per annum and single line
items (unit trust) reporting of £500 per line per annum. It also receives an
asset based fee equal to between 1.00 basis points and 40.00 basis points of
the value of the assets of the Company. Transaction based fees are also
payable of between £10 and £125 per transaction. The variable fees are
dependent on the countries in which the individual holdings are registered.
The Company's ongoing charges for the year ended 31 October 2017, calculated
using the Association of Investment Companies methodology were 1.07% (2016:
1.10%).
6. BANK LOAN / FINANCE COSTS
During the year the overdraft facility with the Northern Trust Company was
terminated. In March 2017 the Company entered into a one year £25,000,000
unsecured revolving credit facility with RBS. At the year end, an amount of
£25,000,000 was drawn down at an all-in rate of 0.82838% per annum. This draw
down matured on 29 November 2017 and was subsequently rolled over at an all-in
rate of 1.06125% per annum maturing on 31 March 2018.
2017 2016
£'000 £'000
Interest payable 110 31
Facility and arrangement fees and other charges 45 15
Total finance costs 155 46
At 31 October 2017, interest payable of £35,000 (2016: nil) was accrued in the
Statement of Financial Position.
7. EARNINGS PER SHARE
Earnings per share is based on the total comprehensive income for the year
ended 31 October 2017, being a gain of £46,726,000 (2016: £85,601,000)
attributable to the weighted average of 51,346,725(2016: 51,904,033) ordinary
shares in issue (excluding shares held in treasury) in the year ended 31
October 2017.
Supplementary information is provided as follows: revenue per share is based
on the net revenue loss of £348,000 (2016: £233,000) and capital earnings per
share is based on the net capital gain of £47,074,000 (2016: £85,834,000)
attributable to the above ordinary shares.
8. DIVIDENDS PAID
The dividends in respect of the year ended 31 October 2017 are detailed
below:
Dividend type Pence per ordinary Share Capital reserve Revenue reserve
£'000 £'000
First interim dividend 5.0 2,560 -
Second interim dividend* 5.0 2,560 -
*Not included as a liability in the accounts for the year ended 31 October 2017 as it was declared and paid after the year end.
9. SHARE CAPITAL
For the year ended 31 October 2017 Authorised Ordinary shares of 1 p nominal value Allotted, issued and fully paid Ordinary shares with voting rights (excluding treasury shares) Treasury shares
£'000
Opening number of shares Unlimited 546 54,618,507 51,748,179 2,870,328
Purchase of own shares - - - (551,450) 551,450
Closing number of shares Unlimited 546 54,618,507 51,196,729 3,421,778
For the year ended 31 October 2016 Authorised Ordinary shares of 1 p nominal value Allotted, issued and fully paid Ordinary shares with voting rights (excluding treasury shares) Treasury shares
£'000
Opening number of shares Unlimited 546 54,618,507 51,926,229 2,692,278
Purchase of own shares - - - (178,050) 178,050
Closing number of shares Unlimited 546 54,618,507 51,748,179 2,870,328
Purchases of own shares
There were 551,450 (2016: 178,050) ordinary shares re-purchased during the
year at an aggregate cost to the Company of £2,910,000 (2016: £885,000), all
of which are held in treasury.
Share capital account
The aggregate balance (including share premium) standing to the credit of the
share capital account at 31 October 2017 was £183,930,000 (2016:
£186,840,000).
Ordinary shares
Voting rights
Holders of ordinary shares are entitled to attend, speak and vote at general
meetings of the Company. Each ordinary share (excluding shares in treasury)
carries one vote. Treasury shares do not carry voting rights.
Dividends
The holders of ordinary shares are entitled to such dividend as maybe declared
by the Company from time to time. Shares held in treasury do not receive
dividends.
Capital entitlement
On a winding up, the ordinary shares (excluding treasury shares) shall rank
pari passu for the nominal capital paid up thereon and in respect of any
surplus. Shares held in treasury have no capital entitlement on a winding up
of the Company.
10. NET ASSET VALUE PER SHARE
Net assets per share is based on net assets of £361,471,000 (2016:
£320,215,000) divided by 51,196,729 (2016: 51,748,179) shares in issue
(excluding shares held in treasury) at the Statement of Financial Position
date.
The below table is a reconciliation between the NAV per share announced on the
London Stock Exchange and the NAV per share disclosed in these Financial
Statements.
2017 2016
£'millions pence £'millions pence
NAV per share as at the financial year end as published on 1 November 2017 (2016: as published on 1 November 2016) 361.5 706.18 320.1 618.58
Revaluation adjustments - late prices - (0.14) 0.1 0.21
NAV per share as disclosed in these Financial Statements 361.5 706.04 320.2 618.79
11. RELATED PARTY DISCLOSURES
Investment Manager
Investment management fees payable are shown in profit or loss in the
Statement of Comprehensive Income. As at 31 October 2017, no performance fee
accrual has been made (2016: £nil).
At 31 October 2017, investment management fees of £255,000 (2016: £213,025)
were accrued in the statement of financial position. Total investment
management fees for the year were £2,694,944 (2016: £2,107,317).
Funds held at 31 October 2017 which are managed by the Standard Life Aberdeen
plc group
As at 31 October 2017, the Company held investments in Aberdeen Asian Smaller
Companies Investment Trust PLC, Aberdeen Latin American Equity Fund Inc and
Edinburgh Dragon Trust PLC. The valuation of these holdings at 31 October 2017
totalled £25,722,000.
Directors
Total fees for the Directors in the year ended 31 October 2017 were £135,100
(2016: £133,100).
12. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held at the Company's registered
office on 12 April 2018.
13. FINANCIAL INFORMATION
The Annual Report was approved by the Board of directors on 19 February 2018.
The information in this announcement has been extracted from the annual report
on which the Company's auditors have given an unqualified report. The annual
report will be posted to shareholders and will be made available on the
Investment Manager's website at aberdeenemergingmarkets.co.uk. It will also be
available from the registered office of Company and the UK Administration
Agent.
This announcement contains regulated information under the Disclosure Guidance
and Transparency Rules of the FCA.
A copy of the annual report will be submitted to the National Storage
Mechanism and will shortly be available at:
http://www.morningstar.co.uk/uk/NSM
Registered office
11 New Street
St Peter Port
Guernsey GY1 2PF
Enquiries:
Aberdeen Fund Managers Limited (Investment Manager to Aberdeen Emerging
Markets Investment Company Limited)
Andrew Lister / Bernard Moody Tel: +44 (0)20 7618 1440
Stockdale Securities Limited (Financial adviser and stockbroker)
Robert Finlay Tel: +44 (0)20 7601 6115
Vistra Fund Services (Guernsey) Limited (Company Secretary)
Lia Rihoy Tel: +44 (0)1481 754147
PraxisIFM Fund Services (UK) Limited (UK Administration Agent)
Anthony Lee Tel: +44 (0)20 7653 9690
Ordinary Shares - Listing Category: Premium - Equity Closed-ended Investment
Funds
19 February 2018
END
This information is provided by RNS
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