Abrdn Latin American Inc... Share Discussion Threads

[aleman] 11/7/2023 14:46

Brasil CPI of 3.19% has dipped below its 3.25% target for 2023 (3.0% for 2024 and 2025). Brasil is now expected to start cutting interest rates significantly. It's 2-year bond has already fallen from 13% to just under 10% and a similar fall has happned for 10-years.

ALAI should be doing really well - oh, wait ... They decided to wind themselves up just when the patient were starting to benefit from Brasilian/Latin American recovery. Wonderful timing.

[gerry53] 27/6/2023 14:58

All but a relatively small amount will be paid in the first payment. The balance is used to cover expenses that may arise or be outstanding, and generally a small follow up payment of anything left is made.

[mancman1] 27/6/2023 08:56

I hadn't realised that the proceeds would be split into multiple (two?) payments.

[gerry53] 27/6/2023 08:28

I understand from the liquidators that a first payment is expected to be made in the week commencing 17th July.

[mozartprodigy] 20/6/2023 12:26

That was my understanding too Mancman. There is no actual date except the 'soon as reasonably practicable' or similar words. I guess we will know soon enough given the holdings were liquid ...

[mancman1] 16/6/2023 11:32

The listing has now been cancelled. According to the latest NAV announcement the value is 62-63 per share. Winding up costs have been included in the calculation since the original announcement. The company has no gearing. How much it held in cash and how much in equities at the time of the last announcement (9th June) is an unknown, but I imagine that they have been reducing holdings for some time.

No indication has been given as far as I am aware of the date of the distribution.

[bsharman3] 26/5/2023 10:22

I'm not sure. I was thinking the same. The discount to NAV is only small, so not sure how much we can expect as shareholders? Anyone else have a view?

[biglosses] 24/5/2023 10:39

Anyone know if this is likely to hover around the 61p level or could it fall/rise in line with the broader market? Just wondering if it's safer to sell now or wait until early June.

[topvest] 15/3/2023 21:06

They should merge it with BlackRock Latin American, particularly if this bear market deepens.

[cc2014] 15/3/2023 09:21

Thing is... I like buying IT's at a discount.

Where I am supposed to put my money instead. Some ETF where the charges may be cheap but it's largely just a tracker? I'm only getting fair value there.

I don't like the way the IT sector is going. Becoming unfashionable.

[tiltonboy] 15/3/2023 08:26

So sub-scale it was inevitable. Should have happened years ago

[my retirement fund] 15/3/2023 08:00

Unfortunately, they could not merge it with something similar

[cwa1] 15/3/2023 07:42

Disappointing for some I suppose...

15 March 2023

Proposal to Liquidate the Company

The Board of abrdn Latin American Income Fund Limited (the "Company") announces that proposals will be put forward for the Company to be placed into summary winding up (the Jersey solvent liquidation process commenced by members' special resolution), with the cash proceeds of the liquidation being returned to shareholders (the "Proposals").

While the Board believes that the Company's strategy remains attractive in the longer term, it is aware that the Company's small size makes it difficult to attract significant demand for its shares and that the discount at which the shares trade to net asset value is likely to persist.

The Board has considered the views of its largest shareholder and its professional advisors and, taking into account the composition of the share register as a whole, believes that the Proposals are in the best interests of shareholders.

The Company will publish a Circular in due course setting out details of the Proposals and to convene an Extraordinary General Meeting at which approval for the Proposals will be sought from shareholders. It is anticipated that, if shareholder approval is forthcoming, the Company would be placed into summary winding up by the end of May 2023.

The Board will recommend that shareholders vote in favour of the Proposals.

[my retirement fund] 05/1/2023 19:47

Lot of volume today and another drop in nav and share price just a normal day for this fund really

[nick rubens] 15/12/2022 15:15

I keep looking at this fund as a possible long term investment in case I get my short term trading buys and sells wrong, which is often, hence I tend to be a longer term than intended investor.
On the face of it it looks great value but it just seemingly withers away over the years. Yes there is a big yield but overall it doesn't seem to be behaving like a good dynamically managed emerging markets fund, unless they have all struggled for the last several years.

The management cost doesn't help, though it's not excessive I suppose, but where is the performance(I believe it's voluntarily capped at 2% of the fund value)?

I understand as Aleman does that that Brazil are ahead on the rate cycle, hence expected rate cuts should be coming,presumably lifting the equity markets and potentially the bond values also?

It's an interesting fund and certainly won't keep us awake at night as do many of the smaller company shares here on the stock exchange

I'm looking to buy I suppose, just not certain when, perhaps as the NAV rises and if the share price lags it at first?

[aleman] 14/12/2022 16:06

Dividend cut? Revenue earnings last year were 4.84p and revenue reserve around 4p. They're just backing down a bit from statements suggesting it might be cut. A rise actually looks more likely. Revenue earnings would have to fall nearly 28% for the dividend to be uncovered, though exchange rates can add to earnings variations. Although GBP/BRL is up 10% in the last couple of months, it's only around the average of the last year so not much swing there as yet. It always wants watching, though.

Brasilian inflation has been coming down nicely, setting up for rate cuts.

[my retirement fund] 14/12/2022 15:28

Needs to fall to 45p imo, could fall to 30p if dividend cut next time, this time they warn again but maintain it.

[nick rubens] 14/12/2022 11:25

NAV falls a bit further today, Brazil Real currency weakens further. I expect the share price is determined solely by demand on the market and/or selling (perhaps NAV influencing investors one way or another). Still, not much daily or regular volume in this fund. I wonder if there are any monthly savings plans invested here which would automatically bring in monthly buys or perhaps there has been some redemptions as with most funds recently due to the cost of living rises.

[nick rubens] 01/12/2022 14:11

Seems to be alot to juggle here, Sterling Vs the Brazil Real and other Latin American currencies, the equity markets in that region, and then the region's bond markets( government lending I presume).

Looking back since around 2010 launch at 100p, it doesn't look a good long term investment idea, though 10 years of dividends will have returned 42.24p (assuming it's been 0.88p a quarter throughout that period.

Fund management fees of around 2% per annum is taking a bite. Are we being potentially lured by a High Yield here at the expense of Capital?

Over the last 12 years Brazil's currency has significantly weakened over Sterling which reduces the fund valuation in Sterling terms.

I would think this fund is a big play on currency values to influence it's NAV, which needs Sterling to now weaken longer term against the Latin American Region. Given the state we have got ourselves in, it's possible as long as the Latin American region don't hit equal financial turmoil etc.

[aleman] 30/11/2022 10:23

Yes. Partly exchange rates, aggravated by some odd policies being touted since Lula's reelection in Brasil.

[nick rubens] 30/11/2022 09:12

Is the recent strengthening of Sterling (GBP) partly related to recent NAV plummeting? 1GBP worth 5.55 to 6.33 Brazil Real in a few weeks..

[my retirement fund] 24/11/2022 12:46

Spectacular collapse in asset value

[my retirement fund] 21/11/2022 17:13

Massive spike valuation spike but now back to 60p

[aleman] 11/11/2022 08:06

Wow. Revenue earnings of 4.84p. Not only is the dividend covered. It should be increased this year. I'm guessing 1p each quarter.