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1、Aberdeen Emerging Markets Investment Company LimitedA UK-listed investment company,seeking consistent returns from a diversified portfolio of emerging market fundsAnnual Report and AccountsFor the year ended 31 October 20171Aberdeen Emerging Markets Investment Company Limited ContentsVisit our Websi
2、teTo find out more about Aberdeen Emerging Markets Investment Company Limited,please visit aberdeenemergingmarkets.co.ukTHIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.If you are in any doubt about the action you should take,you are recommended to seek your own financial advice from
3、 your stockbroker,bank manager,solicitor,accountant or other financial adviser authorised under the Financial Services and Markets Act 2000(as amended by the Financial Services Act 2012)if you are in the United Kingdom or,if not,from another appropriately authorised financial adviser.If you have sol
4、d or otherwise transferred all your Ordinary shares in Aberdeen Emerging Markets Investment Company Limited,please forward this document,together with the accompanying documents immediately to the purchaser or transferee,or to the stockbroker,bank or agent through whom the sale or transfer was effec
5、ted for transmission to the purchaser or transferee.Company OverviewFinancial Highlights 2Chairmans Statement 4Strategic ReportInvestment Managers Report 7PortfolioInvestments 11Asset Allocation 12GovernanceDirectors Report 13Corporate Governance 19Report of the Audit Committee 24Statement of Direct
6、ors Responsibilities 25Directors Remuneration Report 26Depositary Report 27Financial StatementsIndependent Auditors Report 28Statement of Comprehensive Income 31Statement of Financial Position 32Statement of Changes in Equity 33Statement of Cash Flow 34Notes to the Financial Statements 35Corporate I
7、nformationInformation about the Investment Manager 51Investor Information(unaudited)52AIFMD Disclosures(unaudited)55Glossary of Terms and Definitions 56Directors,Investment Manager and Advisers 572Annual Report 2017Company OverviewFinancial HighlightsAberdeen Emerging Markets Investment Company Limi
8、ted(“AEMC”or the“Company”)is a closed-end investment company with its Ordinary shares listed on the premium segment of the London Stock Exchange.It offers investors exposure to some of the best investment talent within the global emerging markets of Asia,Eastern Europe,Africa and Latin America.The C
9、ompany is governed by a board of directors,the majority of whom are independent,and has no employees.Like most other investment companies,it outsources its investment management and administration to an investment management group,Aberdeen Standard Investments(the investment arm of the Standard Life
10、 Aberdeen plc group of companies).Net asset value(“NAV”)per ordinary share total return*NAV per ordinary share*+14.9%706.0p2016+36.4%2016618.8pShare price total return*Ordinary share price mid market+17.0%632.5p2016+36.1%2016545.0pMSCI Emerging Markets Net Total Return Index in Sterling termsNet Ass
11、ets+16.6%361.5 million2016+37.7%2016320.2 millionGearing*Ongoing charges ratio(OCR)+6.0%+1.07%2016nil20161.10%Dividends per share*Revenue return per share10.0p-0.68p2016nil2016-0.45p*Performance figures stated above include reinvestment of dividends on the ex-date*See note 14 in the Notes to the Fin
12、ancial Statements for basis of calculation*Based on the net of the drawn down loan value and cash,as a percentage of NAV*Dividends declared for the year in which they were earnedNAV per ordinary shareAt 31 October pence Ordinary share pricemid marketAt 31 October pence 494.7493.5453.5618.8706.013141
13、516171314151617452.5442.3400.4545.0632.53Aberdeen Emerging Markets Investment Company LimitedInvestment Objective The Companys investment objective is to achieve consistent returns for Shareholders in excess of the MSCI Emerging Markets Net Total Return Index in Sterling terms(the Benchmark).Investm
14、ent PolicyThe Companys investment policy is included on page 13.BenchmarkMSCI Emerging Markets Net Total Return Index in Sterling Terms.ManagementThe Companys Alternative Investment Fund Manager(“AIFM”)and Investment Manager is Aberdeen Fund Managers Limited(“AFML”,“Manager”,“Investment Manager”or“A
15、IFM”),a wholly owned subsidiary of Aberdeen Asset Management PLC(the“Aberdeen Group”)which merged with Standard Life plc on 14 August 2017 to form Standard Life Aberdeen plc.The Companys portfolio is managed by Aberdeens highly experienced Closed End Fund Opportunities(“CEFO”)team,which is amongst t
16、he most experienced of any operating globally with a similar strategy.Further details of the team and the investment strategy and process are included on page 51.Financial Calendar29 March 2018First interim dividend payable for year ended 31 October 201812 April 2018Annual General Meeting(Guernsey)J
17、une 2018Second interim dividend payable for year ended 31 October 2018June 2018Announcement of Half-Yearly Financial Report for the six months ending 30 April 2018September 2018Third interim dividend payable for year ended 31 October 2018December 2018Fourth interim dividend payable for year ended 31
18、 October 2018January/February 2019Announcement of Annual Report and Accounts for the year ending 31 October 20184Annual Report 2017Company OverviewChairmans StatementOverviewOver the year to 31 October 2017,the Companys net asset value(“NAV”)total return was 14.9%and the share price total return was
19、 17.0%(all in Sterling terms).Over the same period the Companys benchmark,the MSCI Emerging Markets Net Total Return Index(in Sterling terms),recorded a total return of 16.6%.Stock markets fell sharply at the beginning of the financial year following Donald Trumps victory in the US presidential elec
20、tion campaign,driven by concerns of protectionist policies and the implications of a strengthening US Dollar.These fears proved to be short-lived.Markets recovered quickly and made steady progress during the rest of the year,benefitting from improving corporate profitability and increasing inflows f
21、rom global investors.The strongest performing region during the year was Emerging Asia,in particular China and South Korea.The returns from these countries were largely driven by the performance of a small number of technology and internet companies.The portfolios underweight exposure to China and t
22、he technology sector were the main detractors from relative performance for the year.However,on the positive side,there were a number of strong performing holdings in the portfolio,with many of the closed-end fund holdings benefitting from narrowing of the discounts to NAV at which their shares trad
23、e.A more detailed explanation of the years performance is provided in the Investment Managers Report.The Board is pleased with the progress made by the Company with regard to revised management arrangements,the diligent implementation of the investment process and the improved performance that has r
24、esulted.In the three years to 31 October 2017 the Company has:Outperformed its benchmark index,with a NAV total return of 44.2%compared to the 42.3%return from the benchmark index Outperformed its Direct Peer Group*of global emerging market investment companies with the NAV total return of 44.2%bein
25、g comfortably ahead of the peer group average of 33.7%Delivered a share price total return in excess of any of its Direct Peer Group(share price total return of 45.1%compared to the Direct Peer Group average of 28.0%)The Companys shares ended the year trading on a discount of 10.4%,compared to 11.9%
26、at the beginning of the year.Although the discount is not out of line with most of the Direct Peer Group,the Board is cognisant of the discount to the NAV at which the Companys shares trade,despite the improving trend in performance.Accordingly,the Board has taken a number of measures with the objec
27、tive of fully utilising the benefits of the closed-end structure whilst also ensuring the Company is made appealing and accessible to as wide an audience of investors as possible.The measures adopted are as follows,and are described in more detail in the paragraphs below.Introduction of a dividend p
28、olicy Use of gearing through the introduction of a 25 million credit facility Reduction in the rate of the basic management fee Removal of performance fee arrangements Use of share buyback powers in accordance with the Companys stated discount management policy Participation in the Aberdeen Investme
29、nt Plans and promotional programme In addition,the Board is today announcing proposals for a tender offer for up to 10%of the Companys ordinary shares in issue at a price reflecting a discount of 3.5%to NAV.DividendsDuring the year,the Board announced its intention to commence making distributions b
30、y way of dividends to be funded from a combination of income and capital.This measure was adopted in the belief that the level of dividends paid by emerging market companies over the long term is an increasingly important attraction for investors seeking to invest in the emerging market asset class.
31、Consultation with existing and prospective shareholders on this topic was supportive of this view.A first interim dividend of 5.0p per share in respect of the year ended 31 October 2017 was paid on 29 September 2017 and a second interim dividend of 5.0p per share was paid on 29 December 2017.In resp
32、ect of future financial years,it is anticipated that four interim dividends will be paid on a quarterly basis,in March,June,September and December.The Board is mindful of the desirability to investors of growth in the absolute level of the dividend over time.Accordingly,the Board declares a first in
33、terim dividend in respect of the year ended 31 October 2018 of 5.25p per share and,in the absence of unforeseen circumstances,anticipates declaring three further interim dividends of at least 5.25p per share.It is therefore anticipated that the total dividend for the year will be no less than 21p pe
34、r share.The first interim dividend for the current financial year,of 5.25p per share,will be paid on 29 March 2018 to shareholders on the register on 2 March 2018.The Board will put a resolution to shareholders at the Annual General Meeting in respect of its policy to declare four interim dividends
35、each year,and will include this as a resolution at future Annual General Meetings.The payment of any dividends will be subject to compliance with all necessary regulatory obligations of the Company,including the Companies(Guernsey)Law solvency test,compliance with its loan covenants,and will also be
36、 subject to the Company retaining sufficient cash for its working capital requirements.*The“Direct Peer Group”referred to above includes the Company,Fundsmith Emerging Equities Trust plc,Genesis Emerging Markets Fund Limited,JPMorgan Emerging Markets Investment Trust plc,JPMorgan Global Emerging Mar
37、kets Income Trust plc and Templeton Emerging Markets Investment Trust plc.All numbers quoted are in Sterling terms and sourced from Bloomberg.5Aberdeen Emerging Markets Investment Company LimitedLoan Facility and GearingDuring the year the Board was pleased to announce that the Company had entered i
38、nto a one year 25 million unsecured multicurrency revolving loan facility.The Board believes that the use of gearing,which is one of the advantages of a closed ended structure,within pre-determined ranges and at times when the Investment Manager sees attractive investment opportunities,will be benef
39、icial to the longer term performance of the Company.25 million of the facility was drawn down at the year-end,representing gearing,net of cash,of 6.0%.The Company has commenced discussions with its bankers and the Board expects to renew the facility on similar terms when it matures in March this yea
40、r.Management Fee ArrangementsBasic Management FeeThroughout the year,the management fee payable by the Company was charged at an annualised rate of 1.0%of adjusted market capitalisation,reduced by the proportion of its net assets invested in funds which are managed by Aberdeen Standard Investments(“
41、Aberdeen Standard Funds”).As referred to above,and previously announced,with effect from 1 November 2017 the annual management fee was decreased to an annualised rate of 0.8%of net assets,reduced in the same manner for any investments in Aberdeen Standard Funds.At 31 October 2017,7.1%of the Companys
42、 net assets were invested in Aberdeen Standard Funds.Based on the value of the Companys net assets at the year end,it is estimated that the revised fee structure will result in an annualised management fee of 0.7%of net assets(allowing for such Aberdeen Standard Funds),compared to an actual rate of
43、0.8%of net assets for the year ended 31 October 2017.The Board believes the revised arrangements represent good value for shareholders.The revision was considered in the context of the overall expenses of the Company in absolute terms and relative to peer group funds.Performance FeeFollowing conside
44、ration of fee arrangements and the Companys level of ongoing charges,the Manager and the Board have agreed that the performance fee arrangements should be removed,to take effect from 1 November 2017.The Board believes this change enhances the attractiveness of the Company to both existing and potent
45、ial investors.Discount and Share Buy BacksThe discount of the share price to NAV at the end of the year was 10.4%.The Board monitors the discount on an ongoing basis.During the year,and in accordance with its stated discount management policy that,in normal market conditions,the shares should trade
46、at a price which on average represents a discount of less than 10%to the NAV,the Company bought back 551,450 ordinary shares to hold in treasury,representing 1.1%of the shares in issue at the start of the year.The Board will continue to consider the use of share buybacks when,in its opinion,and taki
47、ng into account factors such as market conditions and the discounts of comparable companies,the Companys discount is higher than desired and shares are available to purchase in the market.Shares held in treasury may only be resold at a price that represents a premium to the prevailing NAV per share.
48、Aberdeen Investment PlansFollowing the acquisition of the Companys previous investment manager by Aberdeen Asset Management PLC in December 2015,the Board agreed that the Company would participate in the investment plans provided by Aberdeen,which include an Investment Plan for Children,a Share Plan
49、 and an Individual Savings Account(“ISA”).In addition to other promotional activities carried out by the Company,the Board hopes that this will help to generate additional demand for the Companys shares.Details are provided on pages 52 to 54.Continuation Vote and Tender OfferUnder the terms of the C
50、ompanys Articles of Incorporation,the Board is required to propose an ordinary resolution at the forthcoming Annual General Meeting that the Company continues in existence(the“Continuation Resolution”).In accordance with the Articles,if the continuation vote is passed by shareholders then there will
51、 be a further continuation vote in 2023 and at every fifth Annual General Meeting thereafter.If the continuation vote is not passed then,within four months of the vote failing,the Directors shall formulate and put to shareholders proposals relating to the future of the Company having had regard to,i
52、nter alia,prevailing market conditions and applicable regulations and legislation.The Board understands that,whilst the large majority of shareholders by total number of shares held are supportive of the measures taken to make investment in the Companys shares more appealing,and of the continuation
53、of the Company,there is potentially some appetite for liquidity that can be provided by a tender offer.Accordingly,in conjunction with the Continuation Resolution,shareholders will also be asked to approve a tender offer for up to 10%of the Companys ordinary shares in issue at a price reflecting a d
54、iscount of 3.5%to NAV.Shares tendered above the basic entitlement of 10%will be satisfied(on a pro rata basis)to the extent that other shareholders tender less than their aggregate basic entitlement.Assuming it is fully subscribed,the costs of the tender are anticipated to be more than offset by the
55、 uplift in NAV once the relevant shares have been purchased by the Company.The record date for participation in the tender will be 20 February 2018 and the Company expects to publish a circular containing the notice of the Annual General Meeting and the notice of the Extraordinary General Meeting re
56、quired to approve the tender offer in the coming weeks.The resolution to approve the tender will be conditional on the approval by shareholders of the Continuation Resolution.6Annual Report 2017Company OverviewChairmans Statement continuedIt is expected that the Annual General Meeting and the Extrao
57、rdinary General Meeting will both be held on 12 April 2018.Further details will be included in the circular.Board CompositionFollowing the retirements of Terry Mahony and Richard Bonsor earlier in the year,the Board was pleased to announce the appointment of Mark Barker as an independent non-executi
58、ve Director on 21 July 2017.Mark is Managing Partner of Strategic Capital Investors,a boutique investment company,and has over thirty years of investment experience specific to fund of funds.His understanding of risk,portfolio construction and his success in building funds in terms of assets and per
59、formance will prove very valuable to Board deliberations.ManagerThe Board notes the recent completion of the merger between Aberdeen Asset Management PLC(“Aberdeen”),which is the parent company of the Manager,and Standard Life PLC whereby Aberdeen has become a wholly owned subsidiary of Standard Lif
60、e Aberdeen plc.The Board will continue to monitor developments closely to ensure that satisfactory arrangements are in place for the continued effective management of the Company.Outlook Strong corporate earnings growth and a marked improvement in sentiment towards the asset class have supported the
61、 significant gains seen in emerging markets over the past two years.The asset class has,and continues,to benefit from an improved global macro-economic environment,with recovering growth combined with moderate inflation,healthy trade flows and stable currencies.With emerging market equities trading
62、at reasonable valuations we believe the prospects remain encouraging and the risks of less accommodative global monetary policies,ongoing trade negotiations and a busy political calendar do not undermine the fundamentally positive case for investing in emerging markets.As we have stated before,the B
63、oard believes that shareholders benefit from the diversification provided by the Companys approach of investing through a portfolio of specialist funds run by talented managers with strong investment propositions.When combined with the measures adopted during the year as described above,the Board be
64、lieves that the Company is an attractive means for investors to benefit from the long term attractions of emerging markets.Mark Hadsley-ChaplinChairman 19 February 20187Aberdeen Emerging Markets Investment Company LimitedStrategic ReportInvestment Managers ReportDuring the financial year the Company
65、s net asset value(“NAV”)per ordinary share total return was 14.9%,while the MSCI Emerging Markets Net Total Return Index(the“Benchmark”)gained 16.6%.The share price total return was 17.0%,with the discount to NAV at which the Companys shares trade narrowing to 10.4%at year end,compared with 11.9%at
66、the start of the financial year.The Companys NAV return trailed the gain seen in the Benchmark Index by 1.7%.We consider this as a reasonable outcome given the significant contribution of a small number of large e-commerce,social networking and technology companies to the benchmark return over the y
67、ear.For example,in China,Tencent and Alibaba comprise 32%of the MSCI China Index and were responsible for 46.3%of the overall index gain,while in Korea and Taiwan,Samsung Electronics and Taiwan Semiconductor comprise 34%and 32%respectively of the relevant MSCI indices and contributed 57.1%and 57.4%o
68、f the index gains.Our strategy results in a diversified portfolio that avoids the kind of stock specific risks presented by concentrated indices.As a result of the extremely strong performance of the small number of companies noted above,the portfolios of certain of the Companys Asian investments fa
69、iled to match their benchmarks.These included,The China Fund Inc,Fidelity China Special Situations PLC,Weiss Korea Opportunity Fund Limited,Korea Value Strategy Fund Ltd and Schroder International Selection Taiwanese Equity Fund.Notwithstanding this,a number of underlying managers performed admirabl
70、y,most notably Neuberger Berman-China Equity Fund(which closed to new money post the year end),Schroder Asia Pacific Fund PLC,BlackRock Emerging Europe PLC and Russian specialist Verno Capital Growth Fund Limited.Discount narrowing in the Companys closed end fund investments was materially positive
71、during the period.This is consistent with improving sentiment towards the asset class but was also the result of pending liquidity events on specific holdings.BlackRock Emerging Europe PLCs discount narrowed from 11.2%to 5.0%,in part driven by the fact that it will provide shareholders with an oppor
72、tunity to realise the value of their investment in the trust at NAV less applicable costs in 2018.BlackRock Latin American Investment Trust PLCs discount narrowed from 13.8%to 9.5%and The China Fund Inc saw its discount narrow from 13.8%to 9.5%.A negative contribution from Asset Allocation was drive
73、n by an underweight exposure to China,where those same internet-related stocks drove the overall market returns.China now accounts for 29.7%of the emerging market index and was the best performing of the major emerging markets over the course of the financial year,gaining 30.0%.The Companys overweig
74、ht position in Russia was also a detractor.Positive contributions came from the decisions to run underweight allocations to Brazil,South Africa and Qatar.NAV performance attribution for the year ended 31 October 2017Fund Selection(1.6%)Asia(2.3%)EMEA0.5%Latin America0.2%Asset Allocation(0.9%)Asia(0.
75、8%)EMEA(0.3%)Latin America0.2%Cash(direct and underlying)0.0%Discount Narrowing1.6%Fees and Expenses(0.8%)Net asset value under performance*(1.7%)*The above analysis has been prepared on a total return basis.Market environmentThe financial year proved rewarding for emerging market investors.The surg
76、e in the dollar and bond yields following the US presidential election proved short-lived,with concerns related to protectionist and anti-immigration policies receding rapidly.The rally was supported by generally buoyant economic growth and currency stability in emerging markets combined with an imp
77、roving trend in corporate earnings.Presented with such a positive backdrop,global investors returned to the asset class in force.The 17.0%share price return of the Company represents material outperformance of developed markets(MSCI World Index+13.1%).8Annual Report 2017Strategic ReportInvestment Ma
78、nagers Report continuedChart 1.Emerging and developed market performance during the year to 31 October 20171201151101051009590Source:Bloomberg.GBP returns for the period from 31 October 2016 to 31 October 2017Oct 16Nov 16Dec 16Jan 17Feb 17Mar 17Apr 17May 17Jun 17Jul 17Aug 17Sep 17Oct 17 MSCI Emergin
79、g Markets Net TR MSCI World Net TRPerformance rebased to 100In a regional context,Emerging Asia was the best performing area,gaining 16.6%with all the larger markets in the region posting double digit gains.Chinese equities rose by 30.0%with sentiment towards the market supported by index provider M
80、SCIs announcement that domestic Chinese stocks would be included in its China index in mid-2018.The final month of the financial year saw President Xi Jinping set out a vision for his second term at the 19th Communist Party Congress and local equities reacted positively.South Korean stocks posted a
81、gain of 29.4%as the performance of Samsung Electronics propelled the market higher despite tensions over North Korean missile tests.The country saw the election of Moon Jae-in as South Korean president in early May which was well received.South Koreas relations with China improved towards the end of
82、 the period after the resolution of differences over the deployment of the US THAAD anti-missile system.The Taiwanese market returned 15.9%with Taiwan Semiconductor leading the way.The Indian market gained 13.6%,recovering strongly after the unexpected removal of large denomination notes from circul
83、ation in late 2016 and the implementation of the Goods and Services Tax over the summer.The final month of the period saw the announcement of a significant recapitalisation plan for state controlled banks and news of a major transport infrastructure initiative.Pakistan entered the emerging market in
84、dex at the start of June and declined 19.6%over the remainder of the period as the anticipated inflows from global investors failed to materialise,political uncertainties saw President Sharif removed from office in July and investors began to question the stability of the Pakistani Rupee.South East
85、Asian markets also fared poorly with Malaysia,Indonesia and the Philippines all declining.The Emerging Europe,Middle East and Africa index returned 5.8%.The Russian market rose by 7.5%moving in lockstep with oil prices for much of the year.Polish and Hungarian equities fared well,posting gains of 39
86、.3%and 29.8%respectively as economic activity strengthened and both markets saw strong flows into blue-chip stocks.The Egyptian market declined 31.0%,a consequence of the devaluation of the Egyptian pound at the beginning of the period.The South African market gained 2.6%which was driven by a 34.5%g
87、ain in Naspers,which accounts for around one third of the local index and whose underlying value driver is its investment in Chinese internet stock Tencent.The remainder of the South African market remained challenged as ongoing political turbulence and a weak economic backdrop contributed to poor i
88、nvestor sentiment.Qatar(-21.5%)made headlines as a political rift developed over the summer between it and a number of Arab states,led by Saudi Arabia.In Turkey(+6.4%)the most notable development was President Erdogan winning sweeping new powers following a constitutional referendum in April.The Lat
89、in American regional index rose by 1.5%.Mexican equities lost 5.6%as the Mexican peso bore the brunt of swings in sentiment,most notably in the immediate aftermath of the US presidential election and again towards the end of the period with increasing uncertainty surrounding the North American Free
90、Trade Agreement renegotiation process.The regions other major market,Brazil,gained 1.1%,with politics returning to the fore as corruption allegations emerged over the summer against President Temer which will likely delay the reform process.9Aberdeen Emerging Markets Investment Company LimitedChart
91、2.Market performances during the year to 31 October 2017 Source:Bloomberg.GBP returns for the year from 31 October 2016 to 31 October 2017-40%-30%-20%-10%0%10%20%30%40%MSCI EMPolandHungaryGreeceCzech RepublicRussiaTurkeyUnited Arab EmiratesSouth AfricaQatarEgyptPeruChileBrazilColombiaMexicoFrontierU
92、SWorldJapanUKChinaKoreaThailandTaiwanIndiaMalaysiaPhilippinesIndonesiaPakistanEM AsiaEM EMEAEM Latin AmericaPortfolioAt the end of the period,the portfolio comprised 34 positions with the top 10 accounting for 57.3%of net assets.During the period a 25 million gearing facility was introduced and depl
93、oyed,making the portfolio fully invested,even when accounting for look through cash in underlying investments.The facility benefitted performance over the period it was in place.The investment of the gearing facility combined with a general trend towards reflecting greater conviction in the portfoli
94、o resulted in an increase in exposure to open ended funds,where we benefit from superior liquidity and a greater universe of managers from which to choose.The balance between closed and open ended exposure will vary over time,dependent on a broad range of factors.The average discount on the closed e
95、nd portion of the portfolio at the end of the period was 10.7%,marginally narrower than the 11.5%at the start.The overall composition of the portfolio by type of vehicle is shown below.31 October 201731 October 2016Closed end investment funds54.3%60.7%Open ended investment funds47.2%36.4%Market acce
96、ss products 4.5%2.5%Cash and other net assets-6.0%0.4%The most significant new addition during the year was the initiation of a holding in Laurium Capital International Cayman Feeder SP(Laurium Limpopo Fund),an Africa ex-South Africa focused vehicle run by Laurium Capital,a Johannesburg-based invest
97、ment manager.We had researched the Laurium team for a number of years and followed the evolution of this vehicle.We selected the fund for its opportunistic and value driven approach to investing in markets that include Egypt,Kenya,Nigeria and Morocco.At the time of investment in August,Africa was fi
98、rmly out of fashion.The travails of the last few years(commodity price declines,currency devaluations,fund outflows and closures)had,once again,convinced investors that Africa is not a compelling investment destination.We are attracted by this negativity,which is reflected in depressed valuations an
99、d undervalued currencies.The pricing of African assets is often inefficient and we believe Laurium Capital to be an excellent partner through which to access these inefficiencies and the long term growth potential of the continent.Laurium Limpopo Fund accounted for 2.8%of net assets at the year end.
100、Elsewhere in the portfolio we continued to add to existing“best-of-breed”open ended positions in favoured parts of the world,including Findlay Park Latin American Fund(Findlay Park),Avaron Emerging Europe Fund and Neuberger Berman-China Equity Fund(Neuberger).Neuberger announced 10Annual Report 2017
101、Strategic ReportInvestment Managers Report continuedin November 2017 the closure of this strategy to new investors.We view such a decision favourably as it indicates the managers discipline in maintaining performance as opposed to growing assets under management.In a similar vein,Ton Poh Tailand Fun
102、d,the Companys core holding in Thailand and the Mekong delta region also closed at the end of 2017 for similar reasons.In the closed end fund space we purchased additional shares in the deeply discounted Romanian fund,Fondul Proprietatea(Fondul).Despite political volatility in Romania,the economy co
103、ntinues to perform well,benefitting from its proximity to the Eurozone,and Fondul continues to rotate its portfolio and return capital to shareholders.The Companys geographic allocation is shown on page 12.The deployment of the gearing facility saw the Company move from being 96.3%invested at the en
104、d of the previous financial year to 103.8%at the end of this year.The most significant country level change in the portfolio was in China,where exposure increased by 5.1%to reach 25.7%of net assets at year end.Indian exposure was reduced from 8.3%to 4.9%over the period as marginal holdings were sold
105、 consistent with our declining conviction in the top down case for India.The Europe,Middle East and Africa region increased by 3.4%to 24.3%,as a consequence of the purchases noted above.Latin America benefitted from additional purchases of Findlay Park Latin American Fund which led to the overall re
106、gional allocation reaching 14.0%.In addition to boosting the weights of Brazil and Mexico,Findlay Park provides access to a number of interesting Andean opportunities in markets such as Colombia and Peru.The Companys exposure to frontier markets increased over the period to 8.0%of net assets.We beli
107、eve many frontier markets offer compelling valuations as they remain overlooked by mainstream emerging market investors.Market outlookFrom emerging markets low point in February 2016 to the end of the current financial year the Company has delivered a share price total return of 74.9%.This reflects
108、a marked improvement in the fundamental outlook for emerging markets combined with a turnaround in investor sentiment,as reflected by significant inflows in 2017.After such a rally,the question facing investors is whether this positive momentum can continue through 2018.We believe it can continue an
109、d anticipate that as the rally matures,narrow market leadership will broaden out which should play to the strengths of the Companys more value-focused approach.Emerging economies are benefitting from an improved global macro environment,with recovering growth supported by moderate inflation and heal
110、thy trade flows allowing current account positions to improve.This is,in turn,supportive of emerging market currencies,which were,in aggregate,flat in USD terms over the period as measured by the JPM Emerging Market Currency Index.The underlying companies to which the Company is exposed are,on the w
111、hole,in robust shape,with top line revenue growth and increasing margins feeding through to earnings,returns on equity and healthier balance sheets.We expect the on-going broad-based economic and earnings recovery being experienced across our investment universe to continue through 2018 and we take
112、comfort from the attractive relative valuation of emerging market equities despite their strong performance since 2016.Major central banks are embarking on a path towards policy normalisation with interest rates expected to rise and central bank balance sheets to shrink over the coming years.While m
113、onetary tightening has historically been perceived as a negative for emerging markets,we believe the process will be very gradual and should not disrupt sentiment.Geo-politics will most likely continue to cause occasional market panics but in our experience these bouts of risk aversion are generally
114、 short lived and the worst case scenarios seldom materialise.Such was the case following North Koreas missile and nuclear tests in 2017 and the protectionist scare following President Trumps election victory in late 2016.Observers also point to risks emanating from China as a country and economy of
115、ever increasing scale and importance.We believe that President Xis consolidation of power at the recent party congress should facilitate a continuation of the reform process already embarked upon.We believe that debt levels in China,particularly at the corporate(in-particular state controlled corpor
116、ate)level remains worrying but are manageable within the confines of a largely closed capital account.On balance,we believe that the risks discussed above should not be ignored but they do not undermine the fundamentally positive case for investing in emerging markets and we would not be surprised t
117、o see global allocators increase their allocations to the asset class further during 2018.Within the portfolio,we believe the underlying managers with whom the Company is invested are strong,and we are encouraged by the sensible steps being taken by certain funds to limit further inflows.We continue
118、 to run a concentrated portfolio of well-structured funds managed by talented stock pickers in those markets that our top-down analysis indicates to be attractive.We believe this simple strategy,executed well,will deliver attractive risk adjusted returns for investors over the coming years as it has
119、 done over recent financial years.Aberdeen Fund Managers Limited19 February 201811Aberdeen Emerging Markets Investment Company LimitedPortfolioInvestmentsAs at 31 October 2017 CompanyCountry of establishmentValue(000)%of net assetsNeuberger Berman-China Equity FundIreland31,8598.8%Schroder Internati
120、onal Selection Taiwanese Equity FundLuxembourg25,4257.0%Schroder AsiaPacific Fund PLCUnited Kingdom22,6386.3%Weiss Korea Opportunity Fund LimitedGuernsey22,3096.2%Findlay Park Latin American FundIreland21,3495.9%Fidelity China Special Situations PLCUnited Kingdom19,9045.5%BlackRock Emerging Europe P
121、LCUnited Kingdom18,1255.0%Genesis Emerging Markets Fund LimitedGuernsey16,6614.6%Edinburgh Dragon Trust PLCUnited Kingdom15,8634.4%iShares J.P.Morgan$EM Bond UCITS ETFIreland13,0343.6%Top ten holdings207,16757.3%Steyn Capital SA Equity Fund SPCayman Islands12,7283.5%JPMorgan Emerging Investment Trus
122、t PLCUnited Kingdom12,1643.4%Avaron Emerging Europe FundEstonia11,6703.2%Ton Poh Thailand Fund-Class CCayman Islands11,5903.2%Lazard Emerging World Fund-RetailIreland10,8933.0%Korea Value Strategy Fund Ltd-Class BBritish Virgin Islands10,5712.9%Laurium Capital International Cayman Feeder SPCayman Is
123、lands9,9702.8%BlackRock Latin American Investment Trust PLCUnited Kingdom9,6932.7%Verno Capital Growth Fund LimitedCayman Islands8,4862.3%Korean Preferred Share CertificateCuracao7,7762.2%Next ten holdings105,54129.2%Top twenty holdings312,70886.5%As at 31 October 2017 CompanyCountry of establishmen
124、tValue(000)%of net assetsSchroder Oriental Income Fund LimitedGuernsey7,4082.0%The China Fund IncUnited States7,2942.0%Komodo Fund Class SCayman Islands7,2512.0%Fondul ProprietateaRomania6,7721.9%JPMorgan Russian Securities PLCUnited Kingdom6,3381.8%Morgan Stanley India Investment FundUnited States5
125、,9061.6%Baring Vostok Investments PCC LimitedGuernsey5,4681.5%Aberdeen Asian Smaller Companies Investment Trust PLCUnited Kingdom5,4031.5%Aberdeen Latin America Equity Fund IncUnited States4,4561.2%Taiwan Fund IncUnited States3,8201.1%Vanguard FTSE Emerging Markets Index FundUnited States3,3590.9%Th
126、e Mexico Fund IncUnited States3,1220.9%Templeton Emerging Markets Investment Trust PLCUnited Kingdom2,8250.8%Tarpon All Equities Cayman(Series B)L.P.Cayman1,1330.3%Total holdings383,263106.0%Cash and other net assets(21,792)-6.0%Total361,471100.0%12Annual Report 2017PortfolioAsset AllocationAs at 31
127、 October 2017 Country splitAEMCBenchmarkAsia65.6%73.7%China25.7%29.7%India4.9%8.7%Indonesia3.0%2.2%Korea13.4%15.7%Malaysia0.6%2.2%Pakistan0.1%0.1%Philippines0.7%1.1%Taiwan10.7%11.8%Thailand3.8%2.2%Singapore1.7%Other1.0%EMEA24.3%14.0%Czech Rep0.4%0.2%Egypt0.7%0.1%Greece0.4%0.3%Hungary0.2%0.3%Poland1.
128、1%1.3%Qatar0.0%0.5%Russia9.0%3.2%South Africa4.6%6.3%Turkey2.1%1.1%UAE0.7%Other5.8%As at 31 October 2017 Country splitAEMCBenchmarkLatin America14.0%12.3%Brazil6.2%7.1%Chile0.6%1.3%Colombia0.8%0.4%Mexico4.1%3.1%Peru1.0%0.4%Other1.3%Non-specified-0.1%Indirect cash2.2%Portfolio Cash-6.0%Total100.0%100
129、.0%The above analysis has been prepared on a portfolio look-through basis.Benchmark:MSCI Emerging Markets Net Total Return Index in Sterling terms.13Aberdeen Emerging Markets Investment Company LimitedGovernanceDirectors ReportThe directors of Aberdeen Emerging Markets Investment Company Limited(“AE
130、MC”or the“Company”)present the report and financial statements for the year ended 31 October 2017.Investment policyObjectivesThe Companys investment objective is to achieve consistent returns for shareholders in excess of the MSCI Emerging Markets Net Total Return Index in Sterling terms(Bloomberg t
131、icker:NDUEEGF Index)(the Benchmark).i)Asset allocationThe Investment Manager invests in a portfolio of funds and products which give a diversified exposure to developing and emerging market economies.The Investment Manager does not seek to replicate the Benchmarks geographical distribution.The Compa
132、nys geographic asset allocation is derived from the Investment Managers analysis of prospects for regions and countries and the underlying opportunities for investment.The Board does not believe that it should impose prescriptive limits on the Investment Manager for the geographic breakdown and dist
133、ribution by type of fund as this could have a negative impact on the Companys performance and accordingly the Company does not have any prescribed investment limits in this regard.The Investment Manager has discretion to enter into hedging mechanisms where it believes that this would protect the per
134、formance of the Companys investment portfolio in a cost effective manner.To date,the Company has never entered into any such hedging mechanisms.ii)Risk diversificationIndividual investments are selected for their potential to outperform as a result of one or more of the following:the performance of
135、the region,market or asset class in which they invest;the skill of the underlying fund manager;and,in the case of closed end funds,through the narrowing of discounts at which their shares trade to net asset value.No holding by the Company in any other company will represent,at the time of the invest
136、ment,more than 15%by value of the Companys net assets.The diversification within investee funds is taken into account when deciding on the size of each investment so the Companys exposure to any one underlying company should never be excessive.iii)GearingThe Company entered into an unsecured revolvi
137、ng credit facility with The Royal Bank of Scotland(RBS)on 31 March 2017,under which loans with a maximum aggregate value of 25 million may be drawn.As at 31 October 2017,25 million was drawn down from RBS.The directors reserve the right to borrow up to a maximum of 15%of the Net Asset Value of the C
138、ompany at the time of drawdown.Business activitiesThe Company is a closed-ended investment company incorporated and resident in Guernsey and holds a Premium Listing on the London Stock Exchange.Results and dividendsThe Companys total profit and comprehensive income for the year was a gain of 46,726,
139、000(2016:gain of 85,601,000).The Companys revenue return for the year amounted to 348,000(2016:loss of 233,000).A first interim dividend in respect of the year ending 31 October 2017,of 5.0p per ordinary share was paid on 29 September 2017 and a second interim dividend in respect of the year of 5.0p
140、 per ordinary share was paid on 29 December 2017.The Board declares a first interim dividend of 5.25p per share in respect of the year ended 31 October 2018,which will be paid on 29 March 2018 to shareholders on the register on 2 March 2018.In respect of future financial years,it is anticipated that
141、 four interim dividends will be paid on a quarterly basis in March,June,September and December.The Board will put a resolution to shareholders at the Annual General Meeting in respect of its policy to declare four interim dividends each year,and will include this as a resolution at future Annual Gen
142、eral Meetings.Investment report and outlookThe Chairmans Statement and Investment Managers Report incorporate a review of the highlights during the year and the outlook.Key Performance Indicators(KPIs)The Companys success in attaining its objectives is measured by reference to the following KPIs:(a)
143、The Company seeks to generate consistent relative returns ahead of those generated by its Benchmark Index.(b)The Company seeks to achieve a positive absolute return over the longer term through its exposure to the emerging market asset class.PerformanceAn overview of the Companys performance can be
144、seen in the Chairmans Statement and Investment Managers Report.The Benchmark Index in Sterling terms increased by 16.6%over the year against a total return of 14.9%from the Companys Net Asset Value(“NAV”)per ordinary share.14Annual Report 2017GovernanceDirectors Report continuedPrincipal risks and u
145、ncertaintiesTogether with the issues discussed in the Chairmans Statement and the Investment Managers Report,the Board considers that the main risks and uncertainties faced by the Company fall into the following categories:(i)General market risks associated with the Companys investmentsChanges in ec
146、onomic conditions,interest rates,foreign exchange rates and inflationary pressures,industry conditions,competition,political and diplomatic events,tax,environmental and other laws and other factors can substantially and either adversely or favourably affect the value of the securities in which the C
147、ompany invests and,therefore,the Companys performance and prospects.The Companys investments are subject to normal market fluctuations and the risks inherent in the purchase,holding or selling of securities,and there can be no assurance that appreciation in the value of those investments will occur.
148、There can be no guarantee that any realisation of an investment will be on a basis which necessarily reflects the Companys valuation of that investment for the purposes of calculating the net asset value.The Companys investments,although not made into developed economies,are not entirely sheltered f
149、rom the negative impact of economic slowdowns,decreasing consumer demands and credit shortages in such developed economies which,amongst other things,affects the demand for the products and services offered by the companies in which the Company directly or indirectly invests.A proportion of the Comp
150、anys portfolio may be held in cash or cash equivalent investments from time to time.Such proportion of the Companys assets will be out of the market and will not benefit from positive stock market movements,but may give some protection against negative stock market movements.(ii)Developing marketsTh
151、e funds selected by the Investment Manager invest in developing markets.Investing in developing markets involves certain risks and special considerations not typically associated with investing in other more established economies or securities markets.In particular there may be:(a)the risk of nation
152、alisation or expropriation of assets or confiscatory taxation;(b)social,economic and political uncertainty including war and revolution;(c)dependence on exports and the corresponding importance of international trade and commodities prices;(d)less liquidity of securities markets;(e)currency exchange
153、 rate fluctuations;(f)potentially higher rates of inflation(including hyper-inflation);(g)controls on foreign investment and limitations on repatriation of invested capital and a fund managers ability to exchange local currencies for pounds Sterling;(h)a higher degree of governmental involvement and
154、 control over the economies;(i)government decisions to discontinue support for economic reform programmes and imposition of centrally planned economies;(j)differences in auditing and financial reporting standards which may result in the unavailability of material information about economies and issu
155、ers;(k)less extensive regulatory oversight of securities markets;(l)longer settlement periods for securities transactions;(m)less stringent laws regarding the fiduciary duties of officers and directors and protection of investors;and(n)certain consequences regarding the maintenance of portfolio secu
156、rities and cash with sub-custodians and securities depositories in developing markets.(iii)Other portfolio specific risks(a)Small cap stocksThe underlying investee funds selected by the Investment Manager may have significant investments in smaller to medium sized companies of a less seasoned nature
157、 whose securities are traded in an“over-the-counter”market.These“secondary”securities often involve significantly greater risks than the securities of larger,better-known companies,due to shorter operating histories,potentially lower credit ratings and,if they are not listed companies,a potential la
158、ck of liquidity in their securities.As a result of lower liquidity and greater share price volatility of these“secondary”securities,there may be a disproportionate effect on the value of the investee funds and,indirectly,on the value of the Companys portfolio.(b)Liquidity of the portfolioThe fact th
159、at a share is traded does not guarantee its liquidity and the Companys investments may be less liquid than other listed and publicly traded securities.The Company may invest in securities that are not readily tradable or may accumulate investment positions that represent a significant multiple of th
160、e normal trading volumes of an investment,which may make it difficult for the Company to sell its investments.Investors should not expect that the Company will necessarily be able to realise its investments,within a period which they would otherwise regard as reasonable,and any such realisations tha
161、t may be achieved may be at a considerably lower price than prevailing indicative market prices.The Company has an overdraft facility in place which may be utilised to assist in the management of liquidity.The borrowing facility is described later in this Directors Report.Liquidity of the portfolio
162、is further discussed in note 17 to the financial statements.(c)Foreign exchange risksIt is not the Companys present policy to engage in currency hedging.Accordingly,the movement of exchange rates between Sterling and the other currencies in which the Companys investments are denominated or its borro
163、wings are drawn down may have a material effect,unfavourable or favourable,on the returns otherwise experienced on the investments made by the Company.Movements in the foreign exchange rate between Sterling and the currency applicable to a particular shareholder may have an impact upon that sharehol
164、ders returns in their own currency of account.15Aberdeen Emerging Markets Investment Company LimitedManagement or mitigation of the above risksRiskManagement or mitigation of riskGeneral market risks associated with the Companys investmentsThese risks are largely a consequence of the Companys invest
165、ment strategy but the Investment Manager attempts to mitigate such risks by maintaining an appropriately diversified portfolio by number of holdings,fund structure,geographic focus,investment style and market capitalisation focus.Liquidity,risk and exposure measures are produced on a monthly basis b
166、y the Investment Manager and monitored against internal limits.Developing marketsOther portfolio specific risks(a)Small cap stock(b)Liquidity of the portfolio(c)Foreign exchangeThe investment management of the Company has been delegated to the Companys Investment Manager.The Investment Managers inve
167、stment process takes into account the material risks associated with the Companys portfolio and the markets and holdings in which the Company is invested.The Board monitors the portfolio and the performance of the Investment Manager at regular Board meetings.(iv)Internal risksPoor allocation of the
168、Companys assets to both markets and investee funds by the Investment Manager,poor governance,compliance or administration,could result in shareholders not making acceptable returns on their investment in the Company.Management or mitigation of internal risksThe Board monitors the performance of the
169、Investment Manager and the other key service providers at regular Board meetings.The Investment Manager provides reports to the Board on compliance matters and the Administrator provides reports to the Board on compliance and other administrative matters.The Board has established various committees
170、to ensure that relevant governance matters are addressed by the Board.The management or mitigation of internal risks is described in detail in the Corporate Governance Statement on pages 19 to 23.BorrowingsThe Company is permitted to borrow,at the point of drawdown,up to 15%of its net assets.During
171、the year the overdraft facility with the Northern Trust Company was terminated.The Company subsequently entered into an unsecured revolving credit facility with RBS on 31 March 2017,under which loans with a maximum aggregate value of 25 million may be drawn.As at 31 October 2017 25 million was drawn
172、 down.Market informationThe net asset value per ordinary share is calculated for each business day and is published through a regulatory information service.Ordinary shares in issueAs at 31 October 2017 the Company had 51,196,729(2016:51,748,179)ordinary shares in issue(excluding shares held in trea
173、sury).GearingThe Companys year-end net gearing was 6.0%(2016:nil%).The Directors monitor the Companys gearing on a regular basis in accordance with the Companys investment policy and under advice from the Investment Manager.Discount management policyThe Board considers it desirable that the Companys
174、 shares do not trade at a significant discount to net asset value per share and believes that,ideally,the shares should trade at a price which on average represents a discount of less than 10%to the net asset value.To assist the Board in taking action to deal with a material increase in the discount
175、 it seeks authority from shareholders annually to buy back shares.Shares may be repurchased when,in the opinion of the Board and taking into account factors such as market conditions and the discounts of comparable funds,the Companys discount is higher than desired and shares are available to purcha
176、se in the market.The Board is of the view that the principal purpose of share repurchases is to enhance net asset value for the remaining shareholders,although it may also assist in addressing the imbalance between the supply of and demand for the Companys shares and thereby reduce the scale and vol
177、atility of the discount at which the shares trade in relation to the underlying net asset value.Purchases of own sharesDuring the year ended 31 October 2017,the Company purchased 551,450(2016:178,050)of its ordinary shares to be held in treasury.The Companys discount management policy is described a
178、bove.The Companys present authority to make market purchases of its own ordinary shares will expire at the conclusion of the Annual General Meeting at which time a new authority to buy back shares will be sought.The timing of any purchase will be decided by the Board.Any shares bought back by the Co
179、mpany will either be cancelled,or if the directors so determine,held in treasury(and may be re-sold).Purchases of own shares will only be made at a price representing a discount to net asset value per share.Allotment of shares and disapplication of pre-emption rightsAt the Annual General Meeting,an
180、ordinary resolution will be proposed to confer an authority on the Directors,in substitution for any existing authority,to allot,either as new ordinary shares or shares from treasury,up to 5%of the issued ordinary share capital of the Company(excluding shares held in treasury)as at the date of the p
181、assing of the resolution(up to a maximum of 2,559,836 ordinary shares based on the number of ordinary shares in issue as at the date of this report).16Annual Report 2017GovernanceDirectors Report continuedA further resolution will be proposed as a special resolution to provide the directors with the
182、 authority to disapply pre-emption rights in respect of issuing shares and/or selling shares from treasury under the general authority granted as described above.Any future issues of ordinary shares,or sales of shares from treasury,will only be undertaken at a premium to the prevailing net asset val
183、ue per share.These authorities will expire at the conclusion of the Annual General Meeting in 2019.The directors consider that the authorities proposed to be granted at the Annual General Meeting are necessary to retain flexibility,although they do not at the present time have any intention of exerc
184、ising such authority.Significant shareholdersAs at 31 October 2017 the Company had been notified of,or has identified,the following interests in the ordinary shares(excluding treasury shares)of the Company.Holding%City of London Investment Management Company Limited14,916,18129.1Lazard Asset Managem
185、ent LLC12,698,01924.8Wells Capital Management Inc7,048,09413.8Since the end of the year,the Company has been notified that Lazard Asset Management LLCs holding has changed to 11,774,602 ordinary shares.There have been no other changes notified to the Company as at the date of this Report.Non-mainstr
186、eam pooled investments(“NMPIs”)Financial Conduct Authority(“FCA”)rules determine which investment products can be promoted to ordinary retail investors.As a result of these rules,certain investment products are classified as NMPIs and as a result face restrictions on their promotion to retail invest
187、ors.The Association of Investment Companies issued guidance in October 2013 recommending that investment companies which conclude that the distribution of their shares will not be restricted as a result of the rules should make a statement to that effect.The Company currently conducts its affairs so
188、 that the shares issued by the Company can be recommended by Independent Financial Advisers(“IFAs”)to ordinary retail investors in accordance with the FCA rules in relation to NMPIs and intends to continue to do so for the foreseeable future.The Board has been advised that the Companys shares are ex
189、cluded from the FCAs restrictions which apply to NMPIs because they are shares issued by a non-UK company which would qualify as an investment trust if resident in the UK.Continuation voteThe Company does not have a fixed life but the directors consider it desirable that shareholders have the opport
190、unity to review the future of the Company at appropriate intervals.At the 2013 Annual General Meeting,a resolution was approved by shareholders that the Company will continue in existence in its current form until the Annual General Meeting to be held on 12 April 2018.If the resolution is not passed
191、 at its Annual General Meeting 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 the Company,having had regard to,inter alia,prevailing market conditions and the applicable regulations and l
192、egislation.If the resolution is passed,the Company will continue its operations and a similar resolution will be put to shareholders every fifth Annual General Meeting thereafter.Automatic Exchange of Information(“AEOI”)Foreign Account Tax Compliance Act(“FATCA”)FATCA legislation,which was introduce
193、d in the United States,places obligations on foreign financial institutions such as the Company.In Guernsey,local law has been introduced that gives effect to the FATCA requirements and certain reporting obligations are placed on financial institutions as defined by this act.The Company has register
194、ed as a reporting financial institution and is subject to ongoing reporting obligations under the legislation.The Common Reporting Standard(“CRS”)CRS is the result of the drive by the G20 nations to develop a global standard for the automatic exchange of financial account information,developed by th
195、e Organisation for Economic Co-operation and Development(“OECD”).Guernsey has introduced local legislation to give effect to CRS.Guernsey financial institutions are required to identify,review and report on accounts maintained by them which are held by account holders resident in jurisdictions with
196、which Guernsey has agreed to exchange information.Depositary and custody servicesNorthern Trust(Guernsey)Limited has been appointed to provide depositary and custody services to the Company.ManagementSince 1 June 2016,the management of the Companys investments has been contracted to AFML,which is a
197、wholly owned subsidiary of Standard Life Aberdeen plc and is authorised and regulated by the FCA.Further details on the key terms of the agreement and fees payable to the Investment Manager can be found in Note 5 to the financial statements.Alternative Investment Fund Managers Directive(“AIFMD”)The
198、Company appointed Aberdeen Fund Managers Limited as its Alternative Investment Fund Manager(AIFM)with effect from 1 June 2016.An AIFM must ensure that an annual report for the Company is made available to investors for each financial year,provide the annual report to investors on request and make th
199、e annual report available to the FCA.The investment funds sourcebook of the FCA 17Aberdeen Emerging Markets Investment Company Limiteddetails the requirements of the annual report.All the information required by those rules and relevant AIFM remuneration disclosures are or will be available on the C
200、ompanys website(aberdeenemergingmarkets.co.uk).Management engagementIn accordance with the requirements of the Listing Rules of the London Stock Exchange,the Management Engagement Committee has reviewed whether to retain Aberdeen as the Investment Manager of the Company.The Management Engagement Com
201、mittee has agreed that,given the performance of the Company and the specialist knowledge of Aberdeen,it is in the best interests of shareholders as a whole to continue with Aberdeens appointment as Investment Manager to the Company.Company secretary and administratorsVistra Fund Services(Guernsey)Li
202、mited(“Vistra”)is appointed as Administrator and Secretary to the Company.PraxisIFM Fund Services(UK)Limited(“PraxisIFM”)is appointed by Vistra to act as administration agent in the United Kingdom.Further details on the fees payable under these agreements can be found in Note 5 to the financial stat
203、ements.Payment of suppliersIt is the Companys payment policy to obtain the best terms for all business and therefore there is no consistent policy as to the terms used.The Company contracts with its suppliers setting out the terms on which business will take place and abides by such terms.A high pro
204、portion of expenses,including investment management and administration fees,are paid within the month when invoiced.There were no overdue amounts owing to trade creditors at 31 October 2017.Settlement of share transactionsTransactions in the Companys ordinary shares are settled by the CREST share se
205、ttlement system.DonationsThe Company did not make any donations during the year under review.Going concernThe directors have adopted the going concern basis in preparing the financial statements.The Board formally considered the Companys going concern status at the time of the publication of these f
206、inancial 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
207、 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 r
208、elating 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 op
209、erational 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 Companys portfolio of investments as well as its cash position,income and expense flows.As at 31 October 2017,the Company held 3.4
210、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 du
211、ring 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 Companys net assets at 31 December 2017 were 364.9 million.The Company has a 25 million loan facility with RBS which matures on 31 March
212、 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 consid
213、er that the Company is able to continue for a period of at least twelve months from the date of approval of the financial statements.Viability statementThe continuation of the Company is subject to the approval of shareholders every five years,with the next vote at the Annual General Meeting on 12 A
214、pril 2018.Following consultations with shareholders the directors have a reasonable expectation that the continuation vote will be passed.In accordance with Principle 21 of the AIC Code of Corporate Governance published in July 2016,the directors have assessed the prospects of the Company over the p
215、eriod from the date of this report up until 31 October 2020(the Period).The directors believe that the Period,being approximately three years,is an appropriate time horizon over which to assess the viability of the Company,particularly when taking into account the long-term nature of the Companys in
216、vestment strategy.In their assessment of the prospects of the Company,the directors have considered each of the principal risks and uncertainties set out on pages 14 and 15 of this report.Developments in emerging markets and portfolio changes are discussed at quarterly meetings and the internal cont
217、rol framework of the Company is subject to formal review on at least an annual basis.The Companys portfolio consists of a range of funds and other products which provide exposure to emerging markets.Under 18Annual Report 2017GovernanceDirectors Report continuednormal market conditions,the majority o
218、f the investments held by the Company could be sold within one month.However,there are circumstances which could lead to a reduction in market liquidity and,therefore,the ability of the Company to realise its investments.The directors do not expect there to be any material increase in the annual ong
219、oing charges of the Company over the Period.The Companys income from investments and cash realisable from the sale of its investments provide substantial cover to the Companys operating expenses,and any other costs likely to be faced by the Company over the Period.Taking the above into account,the d
220、irectors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the Period.AuditorKPMG Channel Islands Limited was re-appointed as auditor of the Company at the Annual General Meeting held on 10 April 2017.A resolution for
221、the re-appointment of KPMG Channel Islands Limited as auditor of the Company is to be proposed at the forthcoming Annual General Meeting.Annual general meetingThe Annual General Meeting will be held on 12 April 2018.The notice of Annual General Meeting is expected to be sent to shareholders in March
222、 2018,together with proposals for a tender offer of the Companys ordinary shares.Corporate governanceThe corporate governance statement on pages 19 to 23 forms part of this report.Statement of directors responsibilitiesThe statement of directors responsibilities on page 25 forms part of this report.
223、Helen GreenDirectorWilliam CollinsDirector19 February 201819Aberdeen Emerging Markets Investment Company LimitedGovernanceCorporate GovernanceThis Corporate Governance statement forms part of the Directors Report.The Board of Aberdeen Emerging Markets Investment Company Limited(the“Company”)has cons
224、idered the principles and recommendations of the Association of Investment Companies(“AIC”)Code of Corporate Governance(“AIC Code”)by reference to the AIC Corporate Governance Guide for Investment Companies(“AIC Guide”)as issued in July 2016.The AIC Code,as explained by the AIC Guide,addresses all o
225、f the principles set out in the UK Corporate Governance Code,as well as setting out additional principles and recommendations on issues that are of specific relevance to the Company.The Board considers that reporting against the principles and recommendations of the AIC Code,and by reference to the
226、AIC Guide(which incorporates the UK Corporate Governance Code),will provide better information to shareholders.The Guernsey Financial Services Commission revised its Code of Corporate Governance(the“Guernsey Code”)in February 2016.Companies which report under the AIC Code are deemed to meet the requ
227、irements of the Guernsey Code.The Company has complied with the recommendations of the AIC Code and the relevant provisions of the UK Corporate Governance Code,except as set out below.The UK Corporate Governance Code includes provisions relating to:the role of the chief executive executive directors
228、 remuneration the need for an internal audit functionFor the reasons set out in the AIC Guide,and in the preamble to the UK Corporate Governance Code,the Board considers these provisions are not relevant to the position of the Company,being an externally managed investment company.The Company has th
229、erefore not reported further in respect of these provisions.The BoardThe Board aims to provide effective leadership so the Company has the platform from which it can achieve its investment objective.Its role is to guide the overall business strategy for the benefit of shareholders and stakeholders,e
230、nsuring that their interests are its primary consideration.The intention is to create a supportive working environment which allows the Investment Manager the opportunity to manage the portfolio in accordance with the investment policy,through a framework of effective controls which enable risks to
231、be assessed and managed.CompositionMr Bonsor,Mr Hawkins and Mr Mahony were appointed as directors of the Company with effect from its commencement on 16 September 2009.Mr Hadsley-Chaplin was appointed by the Board on 26 April 2012 and Mr Collins was appointed by the Board on 14 June 2012.Mrs Helen G
232、reen was appointed by the Board with effect from 1 July 2016.Mr Mark Barker was appointed by the Board with effect from 21 July 2017.All the directors hold their office in accordance with the Companys Articles of Incorporation.During the year,Mr Mahony retired as a Director on 30 January 2017 and Mr
233、 Bonsor retired as Chairman and a director on 10 April 2017.Mr Hadsley-Chaplin was appointed Chairman of the Board upon the retirement of Mr Bonsor.In addition,the Board conducted a review of its composition and Mr Barker was appointed as a director.The Board did not employ the services of an extern
234、al search consultant or openly advertise in relation to this appointment.As disclosed below,Mr Barker has significant investment experience relevant to the Company and complementary to the skills and experience of the other Directors.The Companys policy is that the Board should have a broad range of
235、 skills and diversity.The Board performs an annual review of its performance and these factors form part of that review process.The Board has given careful consideration to the recommendations of the AIC Code and other guidance on boardroom diversity.The Board considers these recommendations when re
236、viewing Board composition.Mark Hadsley-Chaplin(Chairman)(aged 56)United Kingdom resident-He founded RWC Partners Ltd,a London based fund management firm in 2000,was CEO until 2006 and Chairman until 2010.Prior to this he was Vice Chairman of UBS Securities(East Asia)Ltd,based in Singapore and respon
237、sible for the management and development of the banks Asian equity business worldwide.Mr Hadsley-Chaplin held one other public company directorship in Aberdeen Asian Smaller Companies Investment Trust plc(also managed by the Standard Life Aberdeen plc group)during the year and retired from this boar
238、d on 29 November 2016 making him an independent Director from that date.John Hawkins(aged 75)-United Kingdom resident-is a Fellow of the Institute of Chartered Accountants of England and Wales.He was formerly Executive Vice President and a member of the Corporate Office of The Bank of Bermuda Limite
239、d.He was with The Bank of Bermuda for 25 years,of which approximately 15 years were based in Hong Kong.He is also a director of The Prospect Japan Fund Limited and Raffles Asia Investment Company Limited.Mr Hawkins holds another public company directorship in US-listed Aberdeen Greater China Fund In
240、c(also managed by the Standard Life Aberdeen plc group).He is therefore considered to be non-independent.However,subject to the shareholders of Aberdeen Greater China Fund Inc approving proposals that have been put before them,Mr Hawkins will cease to be a director of that company as a result of its
241、 consolidation,currently anticipated to close prior to the end of April 2018.Upon the closing of the consolidation,he would no longer be regarded as non-independent under the UK Listing Rules.20Annual Report 2017GovernanceCorporate Governance continuedWilliam Collins(Senior Independent Director)(age
242、d 68)Guernsey resident-has over 45 years experience in banking and investment.From September 2007 he was employed by Bank J Safra Sarasin(formerly Bank Sarasin)in Guernsey as Director-Private Clients,retiring at the end of 2014.Prior to that he worked for Barings in Guernsey for over 18 years.In 199
243、5 he was appointed a director and from 2003 until August 2007 was Managing Director of Baring Asset Management(CI)Ltd.Mr Collins holds no other public company directorship.Helen Green(aged 55)-Guernsey resident-is a chartered accountant and has been employed by Saffery Champness,a top 20 firm of cha
244、rtered accountants,since 1984.She qualified as a chartered accountant in 1987 and became a partner in the London office in 1997.Since 2000 she has been based in the Guernsey office where she is client liaison director responsible for trust and company administration.Mrs Green serves as a non-executi
245、ve director on the boards of a number of companies in various jurisdictions.Mrs Green holds other public company directorships in UK Mortgages Limited,Landore Resources Limited,John Laing Infrastructure Fund Limited,City Natural Resources High Yield Trust plc and Acorn Income Fund Limited,of which s
246、he is Chairman.Mark Barker(aged 50)United Kingdom resident-has 30 years of experience in the asset management industry.He is currently managing partner of Strategic Capital Investors LLP,a specialist asset manager providing acceleration capital to early stage asset managers.Mr Barker was previously
247、founder and Chief Investment Officer at Hermes BPK Partners,a Hedge Fund solutions provider that he co-founded in 2008.Prior to founding Hermes BPK,Mark was Co-Chief Investment Officer at Pioneer Alternative Investments,having worked at Momentum Asset Management since 1986,which was acquired by Pion
248、eer in 2002.Momentum Asset Management was one of the early pioneers of the Fund of Hedge Funds industry.Mr Barker does not hold any other public company directorships.The Chairman is independent in accordance with principle 1 of the AIC Code.Mr Hadsley-Chaplin has extensive knowledge of the investme
249、nt management industry and backgrounds which provide the foundation for the role of Chairman and the basis on which to make judgements as head of the Board,on behalf of shareholders.Mr Hawkins is a director of Aberdeen Greater China Fund Inc which is also managed by the Standard Life Aberdeen plc gr
250、oup.As explained above,Mr Hawkins is therefore considered to be non-independent at the date of this report.All other directors are independent of the Investment Manager at the date of this report.An insurance policy covering directors and officers liabilities is maintained by the Company.At 31 Octob
251、er 2017 and at the date of this report the directors had the following shareholdings in the Company.Ordinary sharesAt 31 October2017and at the date of this reportOrdinary sharesAt 31 October 2016M Hadsley-Chaplin25,00020,000W Collins12,00012,000J Hawkins10,00010,000H GreenM BarkerMr Bonsor held 12,0
252、00 ordinary shares as at the date of his retirement on 10 April 2017.Mr Mahony held no ordinary shares as at the date of his retirement on 30 January 2017.A procedure has been adopted for directors,in the furtherance of their duties,to take independent professional advice at the expense of the Compa
253、ny.Directors are encouraged to attend industry and other seminars,including courses run by the AIC,covering issues and developments relevant to investment companies.21Aberdeen Emerging Markets Investment Company LimitedBoard meetingsThe actual number of meetings of the Board and Committees for the y
254、ear under review is given below,together with individual directors attendance at those meetings.The first number in the table is the meetings attended by the individual director and the second number is the number of meetings that director was eligible to attend.BoardNominations CommitteeAudit Commi
255、tteeManagement Engagement CommitteeRemuneration CommitteeM Hadsley-Chaplin4/41/1n/a1/11/1AR Bonsor2/2n/an/an/an/aW Collins4/42/23/31/11/1J Hawkins3/4n/a1/2n/an/aT Mahony1/1n/a1/1n/an/aH Green4/42/23/31/11/1M Barker1/11/11/11/11/1In addition there were two Board meetings to deal with matters relating
256、 to the appointment of a senior independent director,the appointment of an additional director,the dividend policy and for the approval of share buybacks.Re-election of directorsThe services of each of the directors are provided under the terms of letters of appointment between each of them and the
257、Company.Each directors appointment is for an initial three year period subject to renewal and termination upon three months notice.In accordance with the Companys Articles of Incorporation one third of the directors will retire by rotation.A retiring director shall be eligible for re-appointment.Mr
258、Collins will retire and put himself forward for re-election at the Annual General Meeting.Mr Barker,having been appointed as a non-executive director by the Board with effect from 21 July 2017,will stand for election.As required by the listing rules issued by the FCA,Mr Hawkins will put himself forw
259、ard for re-election as he is a director of another investment company managed by the Standard Life Aberdeen plc group.The Board has reviewed the contributions made by Mr Hawkins,Mr Collins and Mr Barker and recommends their continuing appointment as directors of the Company.Board committeesThe Compa
260、ny has established an Audit Committee,a Management Engagement Committee,a Nomination Committee and a Remuneration Committee.Other committees of the Board may be formed from time to time to deal with specific matters.Audit CommitteeA report on page 24 provides details of the role,composition and meet
261、ings of the Audit Committee together with a description of the work of the Audit Committee in discharging its responsibilities.Mrs Green is the Chairman of the Audit Committee.The Audit Committee has formal terms of reference and copies of these are available on request from the Company Secretary.Ma
262、nagement Engagement CommitteeThe Company has established a Management Engagement Committee which comprises all the independent directors,namely,Mr Hadsley-Chaplin,Mr Collins,Mrs Green and Mr Barker.The Committee meets formally at least on an annual basis to consider the appointment and remuneration
263、of the Investment Manager.The Committee also considers the appointment and remuneration of other suppliers of services to the Company.Mr Barker is the Chairman of the Management Engagement Committee.The Committee has formal terms of reference and copies of these are available on request from the Com
264、pany Secretary.Nomination CommitteeThe Company has established a Nomination Committee which comprises Mr Collins,Mrs Green,Mr Barker and Mr Hadsley-Chaplin.The Committee has been established for the purpose of identifying and putting forward candidates for the office of director of the Company and m
265、eets as and when it is required.The Committee considers job specifications and assesses whether candidates have the necessary skills and time available to devote to the job.The Nomination Committee considers the resources within the Committee to be sufficient in the process of appointing a chairman
266、or a non-executive director and therefore did not engage an external search consultancy.Mr Collins is Chairman of the Nomination Committee.The Nomination Committee has formal terms of reference and copies of these are available on request from the Company Secretary.22Annual Report 2017GovernanceCorp
267、orate Governance continuedRemuneration CommitteeThe Company has established a Remuneration Committee,which at the year end comprised Mr Collins,Mr Hadsley-Chaplin,Mr Barker and Mrs Green.The Committee meets at least on an annual basis to consider the remuneration of the directors.The Committee revie
268、ws the remuneration of the directors and Chairman against the fees paid to the directors of other investment companies of a similar size and nature,as well as taking into account data published by the AIC.Mr Collins is the Chairman of the Remuneration Committee.The Remuneration Committee has formal
269、terms of reference and copies of these are available on request from the Company Secretary.Performance evaluationA formal annual performance appraisal process is performed on the Board,the committees,the individual directors and its main service providers.The appraisal is performed internally and th
270、e Board considers that this is appropriate given the nature and size of the Company.A programme consisting of open and closed end questions is used as the basis for the appraisals.The results are reviewed by the Chairman and are then discussed with the Board so that any necessary action can be consi
271、dered and undertaken.A separate appraisal of the Chairman is carried out and the results are reviewed and reported back to the Chairman.The results of the performance appraisal carried out in the financial year ended 31 October 2017 demonstrated that the structure of the board and the diverse experi
272、ence of the directors are appropriate to meet the Companys requirements.The directors are aware that the Board should have an appropriate balance of skills,experience,independence and knowledge.The annual performance evaluation report covers this issue and the Board understands the requirement for t
273、his balance to be maintained.Internal controlsThe AIC Code requires the Board to review the effectiveness of the Companys system of internal controls.The Board recognises its ultimate responsibility for the Companys system of internal controls and for monitoring its effectiveness and has applied the
274、 FRC guidance on internal controls.The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve business objectives.It can provide only reasonable assurance against material misstatement or loss.The Board has undertaken a review of the aspects covered by
275、 the guidance and has identified risk management controls in the key areas of business objectives,accounting,compliance,operations and secretarial as being matters of particular importance upon which it requires reports.The Board believes that the existing arrangements,set out below,represent an app
276、ropriate framework to meet the internal control requirements.Through these procedures the directors have kept under review the effectiveness of the internal control system throughout the year and up to the date of this report.The Board uses a risk assessment matrix to consider the main risks and con
277、trols for the Company.The matrix is reviewed and updated on a frequent basis by the Board.The Board has contractually delegated to external agencies,including the Investment Manager,the management of the investment portfolio,the custodial services(which include the safeguarding of the assets),the re
278、gistration services and the accounting and company secretarial requirements.Each of these contracts was entered into after full and proper consideration of the quality and cost of services offered,including the financial control systems in operation in so far as they relate to the affairs of the Com
279、pany.Financial aspects of internal controlThe directors are responsible for the internal financial control systems of the Company and for reviewing their effectiveness.These aim to ensure the maintenance of proper accounting records,the reliability of the financial information upon which business de
280、cisions are made and which is used for publication and that the assets of the Company are safeguarded.As stated above,the Board has contractually delegated to external agencies the services the Company requires,but it is fully informed of the internal control framework established by the Investment
281、Manager,the Administrator and the UK Administration Agent to provide reasonable assurance on the effectiveness of internal financial controls.The key procedures include monthly production of management accounts and NAV calculations,monitoring of performance monthly and at regular Board meetings,revi
282、ew by directors of the valuation of securities,segregation of the administrative function from that of securities and cash custody and of both from investment management,maintenance of appropriate insurance and adherence to physical and computer security procedures.In addition,the Board keeps under
283、its own direct control all material payments out of the Company other than for investment purposes.Payment of management fees is authorised only by directors after they have studied the financial data upon which those fees are based.The Statement of Directors Responsibilities in respect of the finan
284、cial statements is on page 25 and a statement of going concern is on page 17.The Independent Auditors Report is on pages 28 to 30.Other aspects of internal controlThe Board holds at least four regular meetings each year,plus ad hoc meetings and committee meetings as required.Between these meetings t
285、here is regular contact with the Investment Manager,the Administrator,the UK Administration Agent and the external Auditor.The Company Secretary reports in writing to the Board on operational and compliance issues prior to each meeting,and otherwise as necessary.23Aberdeen Emerging Markets Investmen
286、t Company LimitedDirectors receive and consider monthly reports from the UK Administration Agent,giving full details of all holdings in the portfolio and of all transactions and of all aspects of the financial position of the Company.The Administrator and UK Administration Agent report separately in
287、 writing to the Board concerning risks and internal control matters within the scope of their services,including internal financial control procedures and secretarial matters.Additional ad hoc reports are received as required and directors have access at all times to the advice and services of the C
288、ompany Secretary,which is responsible to the Board for ensuring that Board procedures are followed and that applicable rules and regulations are complied with.This contact with the Investment Manager,Administrator,UK Administration Agent and the external Auditor enables the Board to monitor the Comp
289、anys progress towards its objectives and encompasses an analysis of the risks involved.These matters are assessed on an ongoing basis through the year.There are no significant findings to report from the review of internal controls during the year.Principal risksThe Directors confirm that they have
290、carried out a robust assessment of the principal risks facing the Company,including those that would threaten its business model,future performance,solvency or liquidity.The principal risks and how they are being managed is set out in the Directors Report.Shareholder relationsThe Company invites all
291、 shareholders to attend the Annual General Meeting and seeks to provide twenty working days notice of that meeting.The Notice of Meeting sets out the business of the Annual General Meeting and any item not of an entirely routine nature is explained in the Directors Report.Separate resolutions are pr
292、oposed for each substantive issue.The Board welcomes feedback from the Companys shareholders.The Board receives shareholder feedback directly and via the Companys Investment Manager and Broker through their programme of meetings with shareholders.All directors are available to shareholders if they h
293、ave concerns over issues they feel have not been dealt with through the normal mode of communication with the Chairman.Exercise of voting powersThe Company is committed to exercise diligently its rights as a shareholder and usually votes on relevant decisions of its holdings.In making a voting decis
294、ion all relevant factors are taken into account,including the performance of the investee company,its corporate governance where this bears meaningfully upon the responsiveness of its management to shareholders needs and the readiness of its management to address any areas where improvements might b
295、e expected to strengthen its share price or otherwise create real benefit for shareholders.Further information regarding the activities of the Company in pursuing these issues may be found in the Investment Managers report.The Investment Manager has published on its website its statement of complian
296、ce with the principles of best practice of the Stewardship Code issued by the Financial Reporting Council in July 2010 and updated in September 2012.Social and environmental policyThe Company is a closed-ended investment company and therefore has no staff,premises,manufacturing or other operations.T
297、he Investment Manager takes into account the environmental,social and governance policies of potential investee funds as part of its investment process and has implemented an Environmental,Social and Corporate Governance(ESG)policy.UK Stewardship Code and proxy voting as an institutional shareholder
298、Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the Investment Manager.The full text of the Companys response to the Stewardship Code may be found on its website.24Annual Report 2017GovernanceReport of the Audit CommitteeRole,compositio
299、n and meetingsThe Company has established an Audit Committee,which comprises Mrs Green,Mr Collins and Mr Barker.Mr Hawkins was considered as a non-independent director due to his directorship of Aberdeen Greater China Fund Inc and therefore resigned from the Audit Committee on 4 October 2017.As a mi
300、nimum,the Audit Committee meets on a bi-annual basis and its main functions include,inter alia,reviewing and monitoring internal financial control systems and risk management systems on which the Company is reliant,considering annual and interim financial statements and reports from the auditor,maki
301、ng recommendations to the Board in relation to the appointment and remuneration of the Companys auditor and monitoring and reviewing annually the auditors independence,objectivity,effectiveness and qualifications,and where relevant,compliance with corporate governance changes.The Committee is respon
302、sible for the development and implementation of a policy on the supply of any non-audit services provided by the auditor.The Board has also requested that the Audit Committee advise them on whether it believes that the Annual Report and Financial Statements taken as a whole is fair,balanced and unde
303、rstandable and provides the information necessary for shareholders to assess the Companys performance,business model and strategy.Mrs Green is the Chairman of the Audit Committee and has recent and relevant financial experience.The Audit Committee as a whole has competence relevant to the investment
304、 company sector.In the year ended 31 October 2017 there were three meetings of the Audit Committee.Mrs Green,Mr Barker and Mr Collins attended all of the meetings they were eligible to attend.The Companys external auditor also attends the Audit Committee meetings at the Audit Committees request and
305、reports on its work procedures and its findings in relation to the Companys statutory audit.The Companys external auditor attended all of the Audit Committee meetings during the year ended 31 October 2017.Financial statements and significant accounting mattersThe Audit Committee considered the follo
306、wing significant accounting issues in relation to the Companys financial statements for the year ended 31 October 2017.Valuation of investmentsThe Company,as an investment company,invests virtually all of its assets into funds invested in developing and emerging markets.As at 31 October 2017,investm
307、ents represented approximately 106.0%of its net assets.The valuation of investments is therefore the most significant factor in relation to the accuracy of the financial statements.The portfolio consists of investments in either quoted investment companies or open ended funds with observable indepen
308、dent values.The estimates,assumptions and judgements required to be made by management in determining the valuation of investments and method of accounting are described in more detail in notes 3(a)and 18 to the financial statements.The Audit Committee reviewed the portfolio valuation as at 31 Octob
309、er 2017.The Audit Committee obtained confirmation from the Administrator,UK Administration Agent and the Investment Manager that the Companys accounting policies on valuation of investments had been followed.The Audit Committee made enquiries of the Administrator,UK Administration Agent and the Inve
310、stment Manager with regards to the procedures that are in place to ensure that the portfolio is valued correctly.The Audit Committee agreed the approach to the audit of the valuation of investments with the external auditor prior to the commencement of the audit.The results of the audit in this area
311、 were reported by the external auditor and there were no significant disagreements between management and the external auditors conclusions.Effectiveness of external auditThe Audit Committee reviews the effectiveness of the Companys external audit.The Audit Committee received a presentation of the a
312、udit plan from the external auditor prior to the commencement of the audit and a presentation of the results of the audit following completion of the main audit testing.The Audit Committee performed a review of the external auditor following the presentation of the results of the audit.The review in
313、cluded a discussion of the audit process and the ability of the external auditor to fulfil its role.The factors considered by the Audit Committee included the external auditors resources,the external auditors independence,the performance of the team employed to conduct the audit,audit planning,commu
314、nication and scope of the audit.Following the review,the Audit Committee agreed that the re-appointment of the auditor should be recommended to the Board and the shareholders of the Company.Audit tenureKPMG Channel Islands Limited has been appointed as the Companys external auditor since the Company
315、s launch in 2009.Following professional guidelines,the audit partner rotates after five years.The current audit partner is in his second year of appointment.KPMG Channel Islands Limiteds appointment will continue to be reviewed annually taking into account all relevant guidelines and best practice.P
316、rovision of non-audit servicesThe Audit Committee has put a policy in place on the supply of any non-audit services provided by the external auditor.Such services are considered on a case-by-case basis and may only be provided to the Company if the provision of such services is at a reasonable and c
317、ompetitive cost and does not constitute a conflict of interest or potential conflict of interest which would prevent the auditor from remaining objective and independent.In the year ended 31 October 2017 there were no non-audit services provided,other than reporting on the Companys half year financi
318、al statements.The fee payable to the Auditor for this additional service amounted to 14,000(2016:14,000).Helen GreenAudit Committee Chairman 19 February 201825Aberdeen Emerging Markets Investment Company Limited Statement of Directors Responsibilities in Respect of the Annual Report and AccountsThe
319、directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.Guernsey company law requires the directors to prepare financial statements for each financial period.The directors have elected to prepare the financial statements in accordance
320、with International Financial Reporting Standards as issued by the IASB and applicable law.Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that
321、period.In preparing these financial statements,the directors are required to:select suitable accounting policies and then apply them consistently;make judgements and estimates that are reasonable,relevant and reliable;state whether applicable accounting standards have been followed,subject to any ma
322、terial departures disclosed and explained in the financial statements;assess the Companys ability to continue as a going concern,disclosing,as applicable,matters related to going concern;and use the going concern basis of accounting unless they either intend to liquidate the Company or to cease oper
323、ations,or have no realistic alternative but to do so.The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Companys transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensu
324、re that its financial statements comply with the Companies(Guernsey)Law,2008.They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error,and have general respons
325、ibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.Disclosure of information to auditorThe directors who held office at the date of approval of this Directors Report confirm that,so far as they
326、are each aware,there is no relevant audit information of which the Companys auditor is unaware;and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the Companys auditor is aware of that
327、information.The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Companys website,but not for the content of any information included on the website that has been prepared or issued by third parties.Legislation in Guernsey governi
328、ng the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.Responsibility statement of the directors in respect of the annual financial reportWe confirm that to the best of our knowledge:the financial statements,prepared in accordance with the app
329、licable set of accounting standards,give a true and fair view of the assets,liabilities,financial position and profit or loss of the Company;and the directors report includes a fair review of the development and performance of the business and the position of the issuer,together with a description o
330、f the principal risks and uncertainties that they face.We consider the Annual Report and Accounts,taken as a whole,is fair,balanced and understandable and provides the information necessary for shareholders to assess the Companys position and performance,business model and strategy.Helen GreenDirect
331、or William CollinsDirector19 February 201826Annual Report 2017GovernanceDirectors Remuneration ReportThis Directors Remuneration Report has been prepared on a voluntary basis in accordance with UK regulations governing the disclosure and approval of Directors remuneration,and comprises three parts:1
332、.a Remuneration Policy which the Board has decided will be subject to a binding shareholder vote every three years(or sooner if varied during this interval).The first such vote took place at the Annual General Meeting on 10 April 2017;2.an Implementation Report which is subject to an advisory vote o
333、n the level of remuneration paid during the year;and3.an Annual Statement.A Remuneration Committee has been formed which comprises Mr Collins(Chairman),Mr Hadsley-Chaplin,Mrs Green and Mr Barker.Remuneration policyThe Boards policy is that the remuneration of non-executive directors should be fair and should reflect the experience,work involved,responsibilities and potential liabilities of the Boa
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