1、Annual Report 31 October 2020Aberdeen Emerging Markets Investment Company LimitedLooking for the best-of-breed emerging market fundsVisit our WebsiteTo find out more about Aberdeen Emerging Markets Investment Company Limited,please visit aberdeenemergingmarkets.co.ukTHIS DOCUMENT IS IMPORTANT AND RE
2、QUIRES 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 your stockbroker,bank manager,solicitor,accountant or other financial adviser authorised under the Financial Services and Markets Act 2000(as amended by
3、 the Financial Services Act 2012)if you are in the United Kingdom or,if not,from another appropriately authorised financial adviser.If you have sold or otherwise transferred all your Ordinary shares in Aberdeen Emerging Markets Investment Company Limited,please forward this document,together with th
4、e accompanying documents immediately to the purchaser or transferee,or to the stockbroker,bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.“Aberdeen Emerging Markets Investment Company Limited(“AEMC”or the“Company”)is a closed-end investmen
5、t company with its Ordinary shares listed on the Premium Segment of the London Stock?exposure to some of the best investment talent within the global emerging markets of Asia,Eastern Europe,Africa and Latin America.”ContentsOverview Financial Highlights 2 Financial Calendar 3 Chairmans Statement 4St
6、rategic Report Investment Managers Report 8 Portfolio Investments 17 Asset Allocation 18 Governance Directors Report 21 Corporate Governance Statement 28 Promoting the Success of the Company 34 Report of the Audit Committee 37 Directors Remuneration Report 39 Statement of Directors Responsibilities
7、41 Depositary Report 42Financial Statements Independent Auditors Report 44 Statement of Comprehensive Income 47 Statement of Financial Position 48 Statement of Changes in Equity 49 Statement of Cash Flows 50 Notes to the Financial Statements 51Corporate Information(unaudited)Alternative Performance
8、Measures(APMs)71 Information about the Investment Manager 73 Investor Information 74 AIFMD Disclosures 77 Glossary of Terms and Definitions 78 Notice of Annual General Meeting 80 Form of Proxy 83 Company Information 871Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortf
9、olioGovernanceFinancial StatementsCorporate InformationFinancial Highlights Net asset value(“NAV”)per Ordinary share total return1,4NAV per Ordinary share2Ordinary share price total return1,4+8.9%698.3p+12.2%2019+14.1%2019 663.3p2019+13.2%Ordinary share price mid marketMSCI Emerging Markets Net Tota
10、l Return Index in sterling termsNet Assets605.0p+8.2%321.0m2019 561.0p2019+10.3%2019 304.9 millionNet gearing4Revenue return per Ordinary shareDividends per Ordinary share31.6%1.60p22.0p2019 8.0%2019 2.41p2019 21.00pOngoing charges ratio(OCR)4Discount41.02%13.4%2019 1.07%2019 15.4%1 Performance figu
11、res stated above include reinvestment of dividends on the ex-date 2 See note 14 in the Notes to these Financial Statements for basis of calculation3 Dividends declared for the year in which they were earned4 Definitions of these Alternative Performance Measures(APMs)together with how these have been
12、 calculated can be found on pages 71 and 72NAV per Ordinary shareAt 31 October penceOrdinary share pricemid marketAt 31 October pence010020030040050060070080020202019201820172016618.8p706.0p600.6p663.3p698.3p010020030040050060070080020202019201820172016545.0p632.5p515.0p561.0p605.0p2Annual Report 20
13、20Financial CalendarFinancial CalendarExpected payment dates of quarterly dividends26 March 2021 25 June 202124 September 202124 December 2021Annual General Meeting(Guernsey)20 April 2021Half year end30 April 2021Announcement of Half-Yearly Financial Report for the six months ending 30 April 2021Jun
14、e 2021Financial year end31 October 2021Announcement of Annual Report and Accounts for the year ending 31 October 2021February 2022“I am pleased to report that over the year to 31 October 2020 the Companys net asset value total return per Ordinary share was 8.9%.This compares favourably with a total
15、return of 8.2%from the Companys benchmark,the MSCI Emerging Markets Net Total Return Index(in sterling terms).The Ordinary share price total return for the year was 12.2%.Mark Hadsley-Chaplin,Chairman 3Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFin
16、ancial StatementsCorporate InformationChairmans StatementOverviewI am pleased to report that over the year to 31 October 2020 the Companys net asset value(“NAV”)total return per Ordinary share was 8.9%.This compares favourably with a total return of 8.2%from the Companys benchmark,the MSCI Emerging
17、Markets Net Total Return Index(in sterling terms),and reflects a significant recovery following the fall in the NAV of more than 11%for the first half of the financial year.The Ordinary share price total return for the year was 12.2%,as the discount to NAV at which the Companys shares trade narrowed
18、 slightly,to 13.4%,from 15.4%at the start of the financial year.At the time of writing,the discount to NAV stands at 13.0%.The year under review was dominated by the global impact of the COVID-19 pandemic which caused significant volatility in equity markets.The Companys benchmark index suffered a p
19、eak to trough decline of just over 25%between late January and March 2020 as the global spread of the virus led most countries to introduce social and economic restrictions which severely impacted economic activity,leading to a deep global recession.In a number of emerging markets,the weak performan
20、ce was compounded by commodity price declines and the associated impact of these on currencies.In response to the crisis,governments and central banks around the world,including those in virtually all emerging markets,implemented unprecedented fiscal and monetary stimulus measures to support their e
21、conomies.This helped rebuild investor confidence;during the period from late March 2020 until the end of the financial year,the benchmark index rose by more than 31%.Within emerging markets,Asia,and in particular China,continued to outperform as aggressive measures were introduced to control the spr
22、ead of the virus,enabling an earlier easing of the lockdown and resumption of economic activity than in many other parts of the world.Latin America,however,was the worst performing emerging market region during the year,declining by more than 33%as the spread of the virus accentuated the economic ch
23、allenges for the region.Fund selection contributed strongly to the outperformance during the year,with notable contributions from certain funds invested in China and South Korea.The same was also true in Eastern Europe.However,within these regions,the portfolios underweight exposure to China and Tai
24、wan,and overweight exposure to Russia and Columbia,detracted from an asset allocation point of view.Whilst the portfolio remains less exposed to China than the benchmark,we would emphasise that it still constitutes over a third of the portfolio in absolute terms.The Companys performance also benefit
25、ed from discount narrowing within the closed end fund sector during the latter part of the year,as investor sentiment improved compared to the earlier part of the year.A more detailed explanation of the years performance and portfolio activity during the year is provided in the Investment Managers R
26、eport.DividendsThe Board believes that one of the attractions of the Company is its policy of making quarterly distributions by way of dividends to be funded from a combination of income and capital.This policy has been adopted by the Board in the belief that the level of dividends paid by emerging
27、market companies over the long term is an increasingly important attraction for investors seeking to invest in the emerging market asset class.Three interim dividends,each of 5.5p per share,were paid on 27 March,26 June and 25 September 2020 and,since the year end,a fourth and final interim dividend
28、 in respect of the year of 5.5p per share was paid on 18 December 2020.This brings the total dividends for the year to 22.0p per share.For future years,the Board intends to continue to pay interim dividends on a quarterly basis and it is anticipated that the total dividends for the year ending 31 Oc
29、tober 2021 will be no less than 23.0p per share,a 4.5%increase on the level of dividends paid last year,representing a yield of 3%based on the share price of 752.5p as at 16 February 2021.Accordingly,the Board declares a first interim dividend for the current financial year of 5.75p per share,which
30、will be paid on 26 March 2021 to shareholders on the register on 26 February 2021.The Board will put a resolution to shareholders at the AGM in respect of its policy to declare four interim dividends each year,and will include this as a resolution at future AGMs.The payment of any dividends will be
31、subject to compliance with all necessary regulatory obligations of the Company,including the Guernsey Law solvency test,compliance with its loan covenants,and will also be subject to the Company retaining sufficient cash for its working capital requirements.4Annual Report 2020Loan Facility and Geari
32、ngThe Company has a 25 million multi-currency revolving loan facility which is due to mature on 26 March 2021.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 in
33、vestment opportunities,is beneficial to the longer term performance of the Company.The loan was fully drawn for part of the year,but in light of the Investments Managers cautious view of markets,half of the facility was repaid leaving 12.5 million drawn down at the year end.Gearing,net of cash,at th
34、e year end was 1.6%compared to 8.0%at the start of the year.Since the end of the year the loan has been drawn down in full.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 year.Share Buy BacksThe Company
35、 did not buy back any shares during the year.The Boards policy in relation to discount control is that it considers it desirable that the Companys shares do not trade at a price which,on average,represents a discount that is out of line with the Companys direct peer group.To assist the Board in taki
36、ng action to deal with a material and sustained deviation in the Companys discount from its peer group,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 discoun
37、ts of comparable companies,the Companys discount is higher than desired and shares are available to purchase in the market.The Board is of the view that the principal purpose of share repurchases is to enhance net asset value for remaining shareholders,although it may also assist in addressing the i
38、mbalance between the supply of and demand for the Companys shares and thereby reduce the scale and volatility of the discount at which the shares trade in relation to the underlying net asset value.Shares in Public HandsThe Board has previously announced that the number of Ordinary shares which are
39、deemed by the Listing Rules to be held in public hands is below the minimum 25%threshold.The Listing Rules provide that shares are not considered to be held in public hands(“free float”)if they are held by persons(or persons in the same group or persons acting in concert)who have an interest in 5%or
40、 more of a listed companys share capital,as well as shares held by directors of a listed company.In September 2019,the Company announced that the FCA had agreed to modify the relevant Listing Rule for the period up until 21 August 2020 to permit a reduced level of shares in public hands,even though
41、the level was below 25%.Significant efforts have subsequently been made by the Company and its advisers to increase the shares in public hands through additional marketing efforts,but progress has been hindered by the emergence of the COVID-19 pandemic and lockdown measures that have been adopted.Ac
42、cordingly,the Company has sought and received the agreement of the FCA to extend the period of the Listing Rule modification to 21 August 2021.During this time the Company will continue to monitor its share register,which currently shows a free float of approximately 16%,keep the FCA informed of any
43、 relevant developments and work towards restoring the number of shares in public hands.Compliance with US Executive Order 13959Following the US Presidential Executive Order 13959 dated 12 November 2020,which prohibits US Persons from purchasing publicly traded securities of certain 35 Chinese compan
44、ies identified as Communist Chinese Military Companies,the Company can confirm that it has no direct investments in any of these 35 companies.It does,however,have indirect exposure via a number of its holdings.Following analysis of the Companys holdings by the Manager,this indirect exposure only amo
45、unts to approximately 0.6%of the Companys net asset value.The Company does not expect to have any exposure(direct or indirect)to these 35 companies by 11 November 2021.Updates on this matter will be provided through the Companys website.Annual General Meeting(“AGM”)The AGM will be held at 12 noon on
46、 20 April 2021 at 11 New Street,St Peter Port,Guernsey,GY1 2PF.We would encourage all shareholders to complete and return the proxy form enclosed with the Annual Report so as to ensure that your votes are represented at the meeting.If you hold your shares in the Company via a share plan or a platfor
47、m and would like to attend and/or vote at the AGM,then you will need to make arrangements with the administrator of your share plan or platform.For this purpose,investors who hold their shares in 5Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancia
48、l StatementsCorporate Informationthe Company via the Aberdeen Standard Investments Plan for Children,Share Plan or ISA will find a Letter of Direction enclosed.Shareholders are encouraged to complete and return the Letter of Direction in accordance with the instructions printed thereon.The Board has
49、 been considering how best to deal with the potential impact of the COVID-19 pandemic on arrangements for the Companys AGM.The Company is required by law to hold an AGM and the Board has been working on the basis that the Companys AGM would be held on 20 April 2021 as previously scheduled.However,gi
50、ven the possibility that some measure of restriction on public gatherings and maintaining social distancing may remain in place in April,the Board will give further consideration to the format of the AGM for this year.If the guidance on public gatherings remains in place in April,shareholders are st
51、rongly discouraged from attending the meeting and indeed entry may be refused if the law and/or Government guidance so requires.In such circumstances,arrangements will be made by the Company to ensure that the minimum number of shareholders required to form a quorum will attend the meeting in order
52、that the meeting may proceed and the business concluded.In light of the developing situation,shareholders are encouraged to raise any questions in advance of the AGM with the Manager at (please include AEMC AGM in the subject heading).Questions must be received by 12 noon on 16 April 2021.Any questi
53、ons received will be replied to by either the Manager or Board via the Company Secretary.Further information will be included on the Companys website(www.aberdeenemergingmarkets.co.uk)in advance of the AGM.The Notice of the Meeting is contained on pages 80 to 82.Board CompositionAs previously announ
54、ced,having served as a Director since the Companys Reconstruction in 2009,John Hawkins will retire at the AGM on 20 April 2021.On behalf of the Board I would like to thank John for his significant contribution to the Company during his time as a Director.He shall be much missed and I wish him well f
55、or the future.OutlookOn the whole,emerging markets have been less impacted by the COVID-19 pandemic than most commentators feared at the outset,and there is evidence to suggest that emerging market economies will recover faster than developed markets and emerge less indebted.The recent weakening of
56、the US Dollar provides a welcome tailwind for emerging market currencies,which should result in more interest from investors in emerging markets in the years ahead than they have received in the recent past.The Board continues to believe that the Companys approach of investing through a portfolio of
57、 specialist funds,often at a discount to NAV,provides an attractive means for investors to benefit from these positive short term developments as well as capturing the longer term opportunities presented by this diverse asset class.Mark Hadsley-Chaplin Chairman 18 February 2021Chairmans Statement Co
58、ntinued6Annual Report 20207Annual Report 2020Strategic ReportThe 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”).Strategic Report7Aberdeen Emerging Markets Investment Comp
59、any LimitedInvestment Managers ReportMarket Environment and the Impact of COVID-19While the global impact of the COVID-19 pandemic dominated the year under review and caused significant volatility,emerging market equities recorded a gain of 8.2%for the year,a remarkable outcome under the circumstanc
60、es.After a benign start to the year,by late March 2020 global economies and markets found themselves in the depths of the COVID-19 induced panic.The emerging markets index suffered a peak to trough decline of just over 25%between late January 2020 and its March 2020 low as the global spread of COVID
61、-19 led most countries to introduce social and economic restrictions which severely impacted economic activity,prompting the deepest global recession since World War II.In a number of emerging markets,the weak performance was compounded by commodity price declines and the associated impact of this o
62、n currencies.In response to the crisis,governments and central banks around the world,including virtually all emerging markets,implemented unprecedented fiscal and monetary stimulus measures with the aim of ameliorating the worst of the economic impact.These measures spurred a rebound in investor se
63、ntiment and over the remainder of the period the emerging markets index rallied sharply,gaining 31.9%between late March and the end of October.Chart 1.Emerging and developed market performance during year to 31 October 2020MSCI Emerging Markets Net TR80859095100105110120115Oct 20Mar 20Feb 20Jan 20De
64、c 19Nov 19Oct 19Performance rebased to 100MSCI World Net TRMay 20Apr 20Jun 20Sep 20Jul 20Aug 20Source:Bloomberg.GBP returns for the year from 31 October 2019 to 31 October 2020.In general,the impact of the pandemic has been to accelerate pre-existing trends in emerging markets,as in other asset clas
65、ses.Thus,the underperformers of recent years saw their margin of underperformance expand,while the relative“winners”continued to deliver impressive returns.This was evident in the“melt-up”of growth companies compared to those in traditional value/cyclical sectors,with the former outperforming the la
66、tter by almost 35%over the year(MSCI Emerging Markets Growth Index+25.9%,MSCI Emerging Markets Value Index-8.5%).This represents the largest deviance between the two measures over a twelve month period since their inception in 2000.Asia continued to outperform the rest of emerging markets and larger
67、 companies continued to outperform smaller ones.The benchmark saw further concentration at a country and a company level,with the top three largest constituent countries now comprising 67.8%(compared with 56.0%a year ago)and the 10 largest companies comprising 32.5%(compared with 23.2%a year ago).8A
68、nnual Report 2020Emerging Asia gained 20.1%in aggregate,largely as a consequence of the resilient performance of index heavyweight China.Despite being the epicentre of the COVID-19 outbreak,China implemented aggressive measures to control the spread of the coronavirus quickly and effectively,enablin
69、g a gradual resumption of economic activity as the lockdown was eased earlier than in many other parts of the world.Corporate earnings data was robust and allowed the market to shrug off concerns over ongoing friction with the US,while local sentiment was buoyed by state media reports early in July
70、that suggested local equities were ready for a“healthy bull market”.Within China,as elsewhere,the market was led by those stocks seen as beneficiaries of the pandemic.Many of these are largely“online”businesses and thus those companies active in e-commerce,social media and electronic gaming were amo
71、ngst the biggest gainers.Such stocks included Alibaba Group and Tencent Holdings,the two largest stocks in the Chinese index,which gained 72.4%and 86.7%respectively and were responsible for almost two thirds of that markets gain.The other large North Asian markets of South Korea and Taiwan also bene
72、fitted from being“first in,first out”as well managed pandemic response plans helped both countries deal more efficiently with the crisis than was the case in many other parts of the world.Taiwan gained 26.4%over the year while South Korean equities rose by 14.1%with both markets also benefitting fro
73、m the positive sentiment towards technology stocks.The impacts of the pandemic were felt more keenly in the rest of Asia and that was reflected in stock market performance.Despite a sharp rebound in the second half of the period,Indian equities declined 2.6%with performance in the earlier part of th
74、e period hampered by the perception of being behind the curve in its response to the coronavirus.As well as coping with a shutdown of its tourism sector,a major source of income and employment,Thailand ended the year in a State of Emergency,imposed against a backdrop of pro-democracy protests demand
75、ing the removal of the Prime Minister.The market was the weakest performer in the region,falling 30.8%.Indonesia also fared poorly,losing 21.2%,although there was some good news late in the period as parliament approved the Omnibus Law-a broad based reform aimed at simplifying labour regulations,lic
76、ensing procedures and improving the ease of doing business.In Eastern Europe,the Middle East and Africa,the regional index fell by 18.0%and all constituent markets ended the period in negative territory.The Russian market fell by 29.3%which reflected a sharp decline in energy stocks over the period.
77、The price of Brent crude fell by 37.2%in sterling terms as the pandemic depressed demand in a world where renewable energy continues to gain traction.Despite this,Saudi Arabia(-0.9%),Qatar(-3.4%)and the United Arab Emirates(-11.3%)all proved relatively defensive,with measures to contain the coronavi
78、rus within their populations proving effective and US dollar pegs serving to avoid the currency declines seen in oil producing countries with floating currencies.The South African market fell 13.3%,despite a 36.4%gain from index heavyweight Naspers,which derives the majority of its value from its ho
79、lding in Tencent Holdings.In Eastern Europe,equity markets in Hungary(-30.3%),the Czech Republic(-25.7%)and Poland(-37.3%)were all significantly impacted by the pandemic.Turkey was also amongst the weaker markets,declining by 33.3%,largely as a consequence of currency weakness.Latin America was the
80、worst performing emerging market region,declining 33.2%as the spread of COVID-19 accentuated the economic challenges for the region,notably through the weakness in commodity prices1 and the resulting impact on currencies.Brazil,the largest market in the region,lost 38.1%as the real depreciated by ov
81、er 30%against sterling.Chilean equities fell 28.1%against a backdrop of macro and political headwinds while Mexican stocks lost 21.4%.1 The S&P GSCI Index,a widely recognised measure of general commodity price movements,declined by 31.3%.9Aberdeen Emerging Markets Investment Company LimitedOverviewS
82、trategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationInvestment Managers Report ContinuedChart 2.Market performance during the year to 31 October 2020.-50%-40%-30%-20%-10%0%10%20%30%40%UKFrontierJapanWorldUSColombiaBrazilChilePeruMexicoArgentinaEgyptPolandTurkeyHungaryRussiaCze
83、ch RepublicGreeceSouth AfricaUnited Arab EmiratesQatarSaudi ArabiaThailandIndonesiaPhilippinesPakistanMalaysiaIndiaSouth KoreaTaiwanChinaEM Latin AmericaEM EMEAEM AsiaMSCI EMSource:Bloomberg.GBP returns for the year from 31 October 2019 to 31 October 202010Annual Report 2020Fund PerformanceDuring th
84、e financial year,the Companys net asset value(“NAV”)per share total return was 8.9%while the MSCI Emerging Markets Net total return index(the“Benchmark”)returned 8.2%.The ordinary share price total return was 12.2%,as the discount to NAV at which the Companys ordinary shares trade narrowed to 13.4%f
85、rom 15.4%at the start of the financial year.The Companys NAV total return for the year was 0.7%ahead of the Benchmark.Attribution analysis follows in Table 1 below and shows that underlying holdings,in general,outperformed their benchmarks.Discount narrowing on closed end funds also made a positive
86、contribution while asset allocation by country was detrimental to relative performance.In Asia,the Companys investments in Korea performed strongly,with Weiss Korea Opportunity Fund(NAV+39.6%)and Korea Value Strategy Fund(+54.7%)both significantly outperforming the broader market(MSCI Korea+14.1%).T
87、he managers of both funds invest with a strong value bias,with Weiss expressing this through investments in deeply discounted preferred shares.In China,Fidelity China Special Situations performed exceptionally(NAV+61.3%),with strong stock selection combining with diligent use of gearing and selected
88、 exposure to private companies,as permitted by the funds closed end structure.Elsewhere in Asia,Thai specialist,Ton Poh Fund(-1.6%)had a strong year in relative terms with its portfolio of small to mid-sized growth stocks faring well in a challenging environment where the local index fell by close t
89、o 31%,while Schroder AsiaPacific Fund also outperformed(NAV+24.1%compared with MSCI Asia Pacific Ex Japan+11.8%)through good stock selection within communication services and financials.In Eastern Europe,the long-standing investment in Baring Vostok(private equity in Russian and former CIS states)en
90、joyed a burst of portfolio activity towards the year end with top holding Kaspi(which operates the largest payments,marketplace and financial technology ecosystem in Kazakhstan)listing in London and delivering a significant uplift to performance.The funds share price rose by 14.8%over the year(vs MS
91、CI Russia-29.3%).Emerging Europe(ex Russia)specialist Avaron Emerging Europe Fund reinforced its long track record of low downside capture with NAV-21.4%compared to-34.8%for the MSCI Eastern Europe Ex Russia Index.Within the Companys frontier market allocation,Romanian holding Fondul Proprietatea de
92、livered another period of good absolute and relative returns(NAV+7.6%).Relative detractors included dividend focused strategies in Asia(Schroder Oriental Income Fund Limited NAV+1.3%,and Aberdeen Asian Income Fund NAV-0.8%)as dividend payments were cut in the underlying portfolio companies(we estima
93、te by around 15%over the year)and dominant growth companies in the region(which tend not to feature in these portfolios given their tendency to not pay dividends)powered ahead.The holding in Neuberger Berman-China Equity Fund(+21.1%)detracted from relative performance as its focus on quality growth
94、at reasonable valuations led it to be underexposed to some of the largest contributors to the markets gain.Schroder International Selection Taiwanese Equity Fund(+19.4%)failed to match its benchmark(MSCI Taiwan+26.4%)on account of a structural underweight in Taiwan Semiconductor Manufacturing Compan
95、y,which rallied by close to 60%over the period and represented 45.1%of the Taiwanese Index at the end of the year.Asset allocation detracted from relative performance.This was largely a consequence of the Companys underweight positioning in China and Taiwan,which outperformed the broad emerging mark
96、ets index by 26.9%and 18.2%respectively.Despite the Company having more than 40%of NAV invested in these two markets,this reflects an underweight position relative to a Benchmark in which a combination of China and Taiwan now represents close to 56%.Elsewhere,overweight positions in Russia and Colom
97、bia detracted while major underweights in South Africa,Brazil,Mexico,India and Malaysia contributed positively.Closed End Fund discounts contributed to the Companys outperformance with discount narrowing in the latter stages of the year reflecting a general improvement in investor sentiment from the
98、 depths of the COVID-19 crisis.The largest contributors were Fidelity China Special Situations and Gulf Investment Fund;the former saw its discount narrow by over 10%over the year to trade at parity by the end of period while the latter saw its discount narrow to 4.5%ahead of the publication of deta
99、ils of a full exit opportunity.For the period as a whole,the weighted average discount to NAV of the Companys closed end holdings narrowed from 10.3%to 8.5%.11Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationInves
100、tment Managers Report ContinuedTable 1:NAV performance attribution for the year ended 31 October 2020Fund Selection6.7%Asia2.9%EMEA3.6%Latin America0.2%Global Emerging Markets0.0%Asset Allocation(5.8%)Asia(2.5%)EMEA(2.5%)Latin America(0.2%)Cash/Gearing(direct and underlying)(0.6%)Closed End Fund Dis
101、counts0.8%Fees and Expenses(1.0%)NAV excess return*0.7%*The above analysis has been prepared on a total return basis.Portfolio PositioningThe composition of the portfolio by vehicle type is shown below.The most significant change over the period was that the Company moved from being 107.8%invested a
102、t the start of the year to just 101.2%of net assets by the end of the financial year.Gearing was reduced towards the end of April 2020 following discussions with the Companys Directors and an agreement that it was prudent to adopt a slightly more cautious stance given the wide range of possible pand
103、emic outcomes at that time.The allocation of net assets to open ended funds declined by around 5%during the year,while closed end fund exposure fell by just over 1%.October 2020 October 2019Closed ended investment funds49.1%50.1%Open ended investment funds51.3%56.3%Market access products0.8%1.4%Cash
104、 and other net assets-1.2%-7.8%Net assets100.0%100.0%The Companys geographic allocation is shown on page 18.On a regional basis the most notable change was an 8.2%increase in exposure to Asia which resulted from a combination of market performance and investment activity.Active changes reflected the
105、 belief that the pandemic likely delayed the recovery in economic performance and thus sentiment towards non-Asian markets for which the Company had been positioned coming into 2020.Chinas weight increased to 38.2%,reflecting the countrys resilient performance during the period and the initiation of
106、 a 5.0%position in the Neuberger Berman China Bond Fund at the end of June 2020.From a top down perspective,we view China favourably but are mindful of the risks associated with having such a large proportion of the Companys portfolio invested in a single country.We believe that the China Bond Fund
107、allows us to add to the long term opportunity presented by Chinas capital markets but in a more risk-aware manner than adding to the funds already substantial equity exposure.In the second half of the year,we trimmed sizeable positions in the Aberdeen Standard China A Share Equity Fund and Fidelity
108、China Special Situations,both of which had performed admirably since the market lows in March 2020.Exposure to South Korea increased to 13.7%,reflecting strong market returns and significant outperformance from the Companys dedicated investments in that market.Taiwans weighting declined to 8.1%despi
109、te the markets outperformance as a result of an exit from a small holding in Taiwan Fund in late 2019 and a scaling back of the position in Schroders Taiwanese Equity Fund.India saw a reduction in its allocation to 4.8%,reflecting a tender offer and subsequent exit from JPMorgan Indian Investment Tr
110、ust.Indonesia fell to just 0.8%as redemption proceeds were received from Komodo Fund,which decided to liquidate during the year.The increase in Asias allocation was,in large part,at the expense of Latin America,where the Company moved from an overweight to an underweight position over the year.Besid
111、es market performance,the decline was driven by the redemption of the Companys position in Brown Advisory Latin American Fund which was completed in August 2020.This was driven by a combination of asset allocation and manager selection considerations,with Latin American markets remaining challenged
112、on a number of fronts(currency weakness,unsettling politics,relatively poor response to COVID-19)while the underlying strategy(which has a focus on consumer companies)had failed to deliver on a relative basis for several years.12Annual Report 2020The allocation to the Europe,Middle East and Africa r
113、egion also fell over the year.Partial redemptions from a number of regional vehicles(Avaron Emerging Europe Fund,QIC GCC Equity Fund and Laurium Limpopo in Africa)were utilised to pay down gearing in April 2020,while we also trimmed exposure to Russia through exiting a small holding in JP Morgan Rus
114、sian Securities and via a tender offer from Baring Vostok.We took profits on Fondul Proprietatea while the company also continued to distribute capital back to shareholders by way of dividends and tender offers.In the latter months of the year,Turkey began to screen attractively,justifying increased
115、 exposure through an exchange traded fund.South Africa remained a very significant underweight throughout the period with an already challenging macroeconomic backdrop being compounded by the impact of COVID-19.We continue to believe that many frontier markets,whilst increasingly marginalised and th
116、us overlooked by most investors,are attractively valued and likely to deliver attractive returns for patient allocators of capital.At the end of the year,12.5%of the Companys portfolio was allocated to frontier markets equities and fixed income.Towards the end of the period,we initiated a holding in
117、 BlackRock Frontiers Investment Trust,acquiring shares at a discount to NAV in excess of 6%,an attractive entry point given the low valuation of the portfolio(including a dividend yield of over 5%)and the companys tendency to trade around net asset value.Investors are given the opportunity to exit a
118、ll or part of their investment at NAV less cost every five years,with the next such opportunity in early 2021.Around a third of the Companys frontier allocation remains in the in-house managed Aberdeen Standard Frontier Markets Bond Fund,which offers the potential for good absolute returns from a po
119、rtfolio of predominantly US dollar denominated sovereign bonds issued by a wide range of frontier countries.At the end of October 2020,this portfolio had a yield to maturity of 9.9%,representing a 5.0%spread over mainstream emerging market hard currency debt,a pricing differential that,in our view,i
120、s unjustified by fundamentals.Underlying exposure is to countries as diverse as Ukraine,Ivory Coast and Kenya,bringing further diversification to the Companys portfolio.The Company participated in several accretive corporate actions during the year.JP Morgan Indian Investment Trust completed a tende
121、r offer for 25%of shares in issue in February 2020.With a surprisingly low participation rate,there was substantial scaling-up and we exited 60%of the Companys position at a significant premium to the prevailing market price.The Company also benefitted from several modest tender offers in Romanian h
122、olding Fondul Proprietatea,selling stock at a premium to prevailing market levels each time.In late 2019,we also took advantage of a liquidity window provided by a share buyback by Russian private equity specialist Baring Vostok that was conducted at a price materially higher than it had traded at o
123、ver prior months.The Company retains exposure to a number of closed end funds with the potential for future corporate activity through full exit opportunities(Gulf Investment Fund,BlackRock Frontiers Investment Trust,Weiss Korea Opportunity Fund),ongoing regular tenders(Fondul Proprietatea)or condit
124、ional tenders(BlackRock Latin American Investment Trust,Genesis Emerging Markets Fund).The allocation to funds managed by Aberdeen Standard Investments increased from 11.9%to 17.5%of net assets during the year.A significant element of that is accounted for by positions in open ended funds investing
125、in China A Shares(5.2%)and Frontier Market Bonds(4.2%)with the remainder spread across several closed end funds focussed on Asian equities.The use of in-house managed funds,on which there is no double charging of fees,is a valuable tool in making the Company as cost-effective as possible in an envir
126、onment where this is increasingly a concern for investors.All investments in“in-house”products are subject to the same in-depth diligence as external funds and a rigorous conflicts of interest procedure.We have discussed in past reports our desire to invest in a focused list of actively managed hold
127、ings run by talented investment teams across emerging and frontier markets,thus offering investors an attractive“one stop shop”in a complex and sprawling asset class.In addition,the payment of quarterly dividends from a combination of capital and income and use of gearing,all capture the benefits of
128、 the closed end fund structure.To these collective points,at the end of the year the portfolio was invested in 30 funds,with 92.0%of net assets being exposed to equities,9.2%to fixed income,cash and other net assets of-1.2%and the Companys dividend yield was 3.6%per annum.We believe this is an attra
129、ctive profile in the circumstances and one that should hold broad appeal.OutlookEmerging markets have,over the last five years,quietly delivered strong returns for investors(MSCI Emerging Markets Index+74.4%),while at the same time remaining largely out of favour as an asset class.While 2020 has obv
130、iously presented many challenges,we believe it has also provided reasons to believe this spell of performance can continue,if not accelerate.13Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationInvestment Managers R
131、eport ContinuedIn aggregate,emerging markets have been less impacted by COVID-19 than most commentators feared at the outset of the pandemic.China,South Korea and Taiwan(collectively 60.0%of the Companys portfolio)obviously stand out in a global context as having benefitted from early and decisive m
132、easures to quell the spread of the coronavirus,whilst also having a healthy representation of growth companies on their exchanges(technology platforms in the case of China,and hardware in the case of Taiwan and South Korea).For China in particular,we believe 2020 will prove a year in which asset all
133、ocators finally overcame many of their fears(trade wars,growth concerns,sovereign and corporate governance)and began taking steps to more adequately reflect the importance of this market in their portfolios-the pandemic,perversely,having served as a positive catalyst for this.Outside of these three
134、markets,the COVID-19 experience has been more mixed,but one unifying factor is the more muted policy response employed by emerging market central banks.There is much evidence to suggest that emerging market economies will shrink less in 2020,bounce back faster in 2021 and emerge less indebted than d
135、eveloped markets.The likelihood of vaccines being rolled out in 2021 has already been reflected in improved performance in the likes of Brazil,South Africa and India.The combination of the US congress coming under the control of the Democratic Party,the roll out of vaccines,the accommodative stance
136、of the Federal Reserve(with record levels of debt and low interest rates likely to prevail in the coming years)all suggest the US dollar will continue to weaken.At the same time,emerging equity and debt markets are amongst the few to still offer positive real yields,which are likely to attract capit
137、al back into the asset class to the benefit of emerging market currencies.The importance of this should not be underestimated,as can be seen in Chart 3 below,which shows quite clearly how long and painful the current cycle has been,whilst also reminding one of how lucrative the prior cycle was.Chart
138、 3.MSCI Emerging Markets Index performance relative to MSCI US and the trade weighted US dollar(inverted)Performance rebased to 100Index levelMSCI EM/MSCI USUS Dollar Index(RHS,inverted)50100150200250300350400450500Dec20Dec18Dec17Dec16Dec15Dec14Dec13Dec12Dec11Dec10Dec09Dec08Dec07Dec06Dec05Dec04Dec03
139、Dec02Dec01Dec00Dec99Dec9813012512011511010510095908580Dec19Source:Bloomberg.MSCI indices used are net total return in USD.For period from 31 December 1998 to 31 December 2020.14Annual Report 2020Many of the major beneficiaries of a decline in the US dollar are outside of the major North Asian econom
140、ies,and thus we would caution against investors limiting their emerging market exposure to the obvious Asian economies at the expense of Eastern Europe,Latin America and frontier markets,all of which would benefit materially from the trends discussed above.In addition,a weaker US dollar has tended t
141、o favour smaller companies and“value”investments.We retain exposure to these unappreciated regions and themes based on fundamentals and future prospects,not recent past performance.Trying to time exactly when any rotation in leadership(by country,market capitalisation or sector)will take place is ex
142、tremely challenging,as the dash to value following the announcement of the first vaccine highlights.Risks to this“goldilocks”scenario for emerging markets include geopolitics(in China and Iran,for example),a disappointment in 2021 earnings(currently forecast to grow by 25-30%across emerging markets)
143、and the interplay of this with valuations(a 15x aggregate emerging market forward price to earnings ratio offers less value than has been present in much of the recent past).The major risk we perceive in markets more generally is an earlier than expected withdrawal of the easing measures put in plac
144、e to deal with the pandemic(higher US rates being the most obvious barometer of this).On this latter point,it is interesting to note that China has already begun tightening,making it the first country globally to do so.Overall,we maintain a positive outlook.Since the end of the financial year,we hav
145、e fully drawn the Companys revolving credit facility,taking the portfolio 4.7%geared as at 16 February 2021,with 96.9%of net assets being exposed to funds invested in equities,7.8%in funds investing in fixed income and-4.7%in cash and other net assets.We believe this positioning differentiates the C
146、ompany from many of its peers and leaves it well placed to reap rewards.We believe the current uptick in sentiment towards,and strong performance of,the asset class is justified and likely to continue.Aberdeen Asset Managers Limited 18 February 202115Aberdeen Emerging Markets Investment Company Limi
147、tedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationPortfolioThe Companys NAV total return for the year was 0.7%ahead of the Benchmark.Underlying holdings,in general,outperformed their benchmarks.Discount narrowing on closed end funds also made a positive contribut
148、ion while asset allocation by country was detrimental to relative performance.16Annual Report 2020InvestmentsAs at 31 October 2020Security investment nameCountry of establishmentValue(000)Percentage of net assets(%)Neuberger Berman-China Equity FundIreland35,73011.1Weiss Korea Opportunity Fund Limit
149、edGuernsey23,9667.5Schroder AsiaPacific Fund PLCUnited Kingdom23,4947.3Fidelity China Special Situations PLCUnited Kingdom21,4946.7Aberdeen Standard SICAV I China A Share Equity FundLuxembourg16,6885.2Schroder International Selection Taiwanese Equity FundLuxembourg15,9935.0Neuberger Berman-China Bon
150、d FundIreland15,9495.0Aberdeen Standard SICAV I-Frontier Markets Bond FundLuxembourg13,4574.2Korea Value Strategy Fund LtdBritish Virgin Islands13,2814.1Genesis Emerging Markets Fund LimitedGuernsey11,9953.7Top ten investments?192,04759.8Aberdeen Asian Income Fund LimitedUnited Kingdom11,4143.6Fondu
151、l ProprietateaRomania11,3373.5Schroder Oriental Income Fund LimitedGuernsey11,2133.5Lazard Emerging World FundIreland9,7803.0Diversified Growth Company QIC GCC Equity FundLuxembourg9,4502.9Aberdeen New India Investment Trust PLCUnited Kingdom9,0612.8Ton Poh FundCayman Islands8,3562.6Avaron Emerging
152、Europe FundEstonia8,3352.6Verno Capital Growth Fund LimitedCayman Islands8,0982.5BlackRock Latin American Investment Trust PLCUnited Kingdom8,0522.5Next ten investments?95,09629.5Top twenty investments?287,14389.3Laurium Limpopo Africa FundCayman Islands7,7612.4JPMorgan Emerging Markets Investment T
153、rust PLCUnited Kingdom7,2892.3Asia Dragon Trust PLCUnited Kingdom5,2821.7Baring Vostok Investments PCC LimitedGuernsey4,6731.5Gulf Investment Fund PLCIsle of Man3,1511.0iShares MSCI Turkey ETFUnited States2,5190.8BlackRock Frontiers Investment Trust PLCUnited Kingdom2,5160.8JPMorgan Global Emerging
154、Markets Income Trust PLCUnited Kingdom2,5120.8Tarpon All Equities CaymanCayman Islands1,0700.3Komodo FundCayman Islands1,0590.3Total investments?324,975101.2Cash plus other net current assets and liabilities?(4,005)(1.2)Net assets?320,970100.017Aberdeen Emerging Markets Investment Company LimitedOve
155、rviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationAsset AllocationAs at 31 October 2020Country splitCompany(%)Benchmark(%)Asia73.181.4China38.243.2South Korea13.711.9Taiwan8.112.7India4.88.1Thailand3.21.7Singapore1.7-Indonesia0.81.3Vietnam0.3-Philippines0.20.8Malaysia0
156、.11.7Pakistan0.1-Other1.9-EMEA21.211.6Russia4.32.7Romania3.7-Saudi Arabia1.92.7Egypt1.10.1Turkey1.10.3Kuwait0.7-Qatar0.70.8UAE0.70.5Poland0.60.6South Africa0.53.5Hungary0.40.2Greece0.30.1Czech Republic0.20.1Other5.0-18Annual Report 2020As at 31 October 2020Country splitCompany(%)Benchmark(%)Latin Am
157、erica4.87.0Brazil2.44.4Mexico0.81.6Argentina0.40.1Chile0.20.5Peru0.10.2Colombia-0.2Other0.9-Non-specified1.5-Cash in underlying investments0.7-Cash plus other net current assets(1.3)-Total100.0100.0The above analysis has been prepared on a portfolio look-through basis.Benchmark:MSCI Emerging Markets
158、 Net Total Return Index in sterling terms.19Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationGovernanceThe Company is committed to high standards of corporate governance and applies the principles identified in th
159、e UK Corporate Governance Code and the AIC Code of Corporate Governance.All Directors are considered by the Board to be independent of the Company and the Manager and free of any material relationship with the Manager.20Annual Report 2020The Directors of Aberdeen Emerging Markets Investment Company
160、Limited(“AEMC”or the“Company”)present the report and financial statements for the year ended 31 October 2020.Investment PolicyObjective 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(
161、Bloomberg ticker:NDUEEGF Index)(the“Benchmark”).i)Asset Allocation The 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 distribut
162、ion.The Companys 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 break
163、down and distribution 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 pr
164、otect the performance of the Companys investment portfolio in a cost effective manner.To date,the Company has never entered into any such hedging mechanisms.ii)Risk Diversification Individual investments are selected for their potential to outperform as a result of one or more of the following:the p
165、erformance of the region,market or asset class in which they invest;the skill of the underlying fund manager;and additionally,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 represen
166、t,at the time of the investment,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)Gearing The Directors res
167、erve the right to borrow up to a maximum of 15%of the NAV of the Company 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
168、comprehensive income for the year was a profit of 26,090,000(2019:profit of 38,447,000).The Companys revenue return for the year amounted to a profit of 734,000(2019:profit of 1,109,000).The Company declared four interim dividends;each at the rate of 5.50p per Ordinary share,in respect of the year e
169、nded 31 October 2020.The Board has declared a first interim dividend of 5.75p per Ordinary share in respect of the year ending 31 October 2021,which will be paid on 26 March 2021 to shareholders on the register on 26 February 2021.It is anticipated that four interim dividends will continue to be pai
170、d on a quarterly basis in March,June,September and December.The Board will put a resolution to shareholders at the AGM in respect of its policy to declare four interim dividends each year.Investment Report and OutlookThe Chairmans Statement and Investment Managers Report incorporate a review of the
171、highlights during the year and the outlook for the forthcoming year.Key Performance Indicators(“KPIs”)The Companys success in attaining its objectives is measured by reference to the following KPIs:(a)The Company seeks to generate consistent relative returns ahead of those generated by its Benchmark
172、.(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 is contained in the Chairmans Statement and Investment Managers Report.Directors Report21Aberdeen Emerging Marke
173、ts Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationDirectors Report ContinuedIn sterling terms,the Benchmark Index total return increased by 8.2%(2019:10.3%)over the year against an increase of 8.9%(2019:14.1%)for the Companys NAV per Ord
174、inary share.Ongoing ChargesFor the year ended 31 October 2020,the Companys ongoing charges figure,calculated using the Association of Investment Companies(“AIC”)methodology,was 1.02%(2019:1.07%).Principal Risks,Emerging Risks and UncertaintiesTogether with the issues discussed in the Chairmans State
175、ment 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 Investments Changes in economic conditions,interest rates,foreign exchange rates and inflatio
176、nary 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 Company invests and,therefore,the Companys performance and prospects.
177、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.There can be no guarantee that any realisation of an investment will
178、 be on a basis which necessarily reflects the Companys valuation of that investment for the purposes of calculating the NAV.The Companys investments,although not made into developed economies,are not entirely sheltered from the negative impact of economic slowdowns,decreasing consumer demands and cr
179、edit 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 Companys portfolio may be held in cash or cash equivalent investments from time to t
180、ime.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)Emerging Markets The funds selected by the Investment Manager invest in emerging markets.Investing i
181、n emerging 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 nationalisation or expropriation of assets or confiscatory taxation;(b)social,economic and
182、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 rate fluctuations;(f)potentially higher rates of inflation(including hyper-inflation
183、);(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 control over the economies;(i)government decisions to discontinue support for econom
184、ic 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 issuers;(k)less extensive regulatory oversight of securities markets;(l)longer settlement
185、 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 securities and cash with sub-custodians and securities depositories in developing markets
186、.(iii)Other Portfolio Specific Risks(a)Small cap stocks The underlying investee funds selected by the Investment Manager may have significant investments in smaller to medium sized companies of a less seasoned nature whose securities are traded in an“over-the-counter”market.These“secondary”securitie
187、s 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 lack of liquidity in their securities.As a result of lower liquidity and greater share
188、 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.22Annual Report 2020(b)Liquidity of the portfolio The fact that a share is traded does not guarantee its liquidity and the C
189、ompanys 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 the normal trading volumes of an investment,which may make it dif
190、ficult 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 that may be achieved may be at a considerably lower price than pre
191、vailing indicative market prices.The Company has a borrowing 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 is further discussed in note 17 to the financial statements.(c)F
192、oreign exchange risks It 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 borrowings are drawn down may have a material effect,unfavourable or
193、 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 shareholders returns in their own currency of account.Management or mit
194、igation of the above risks RiskManagement or mitigation of riskGeneral market risks associated with the Companys investmentsThese risks are largely a consequence of the Companys investment strategy but the Investment Manager attempts to mitigate such risks by maintaining an appropriately diversified
195、 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 by the Investment Manager and monitored against internal limits.Emerging marketsOther portfolio specific risks(a)Smal
196、l 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 investment process takes into account the material risks associated with the Companys portfolio and the markets and holdin
197、gs in which the Company is invested.The Board monitors the portfolio and the performance of the Investment Manager at regular Board meetings.(iv)Internal Risks Poor allocation of the Companys assets to both markets and investee funds by the Investment Manager,poor governance,compliance or administra
198、tion,including poor controls over cyber security,could result in shareholders not making acceptable returns on their investment in the Company.Management or mitigation of internal risks The Board monitors the performance of the Manager and the other key service providers at regular Board meetings.Th
199、e 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 to ensure that relevant governance matters are addressed by the Board.The management or mitiga
200、tion of internal risks is described in detail in the Corporate Governance Statement on pages 32 and 33.(v)Emerging Risks Emerging risks are slow moving trends,innovations and shifts with potential consequence to a specific industry or sector in the long term.They can include movements in:demographic
201、s,economics,society,technological innovations,national policy and governance.The most significant risk which emerged during the year was the COVID-19 pandemic.The first case of the virus was identified in Wuhan,China,in December 2019 and continued to spread worldwide during 2020.The consequence of t
202、he virus has dramatically impacted public health and mobility,with a cascading effect on consumerism,the global financial markets and the future economic outlook.Management or mitigation of emerging risks A risk management register and associated risk heat map,providing a visual reflection of the Co
203、mpanys identified and emerging risks have been established to monitor and mitigate risks to the Company,with both a risk pre mitigation and risk post mitigation score determined,depending on the impact of the risk combined with the probability of the risk occurring.23Aberdeen Emerging Markets Invest
204、ment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationDirectors Report ContinuedBorrowingsThe Company is permitted to borrow,at the point of drawdown,up to 15%of its net assets.On 29 March 2018,the Company entered into an unsecured 12 month revolving
205、 credit facility with The Royal Bank of Scotland plc,under which loans with a maximum aggregate value of 25 million may be drawn.The facility was renewed with The Royal Bank of Scotland International Limited(London Branch)(RBSI)on 26 March 2020 for a further 12 month period,with a termination date o
206、f 26 March 2021.As at 31 October 2020,12.5 million(2019:25 million)was drawn down at an all-in monthly rate of 0.76925%(2019:1.26413%).GearingAt the year end,the Companys net gearing figure was 1.6%(2019:8.0%).The Directors monitor the Companys gearing on a regular basis in accordance with the Compa
207、nys investment policy and under advice from the Investment Manager.Market InformationThe NAV per Ordinary share is calculated for each business day and is published through a regulatory information service.Discount Management PolicyThe Board considers it desirable that the Companys shares do not tra
208、de at a price which,on average,represents a discount that is out of line with the Companys direct peer group.To assist the Board in taking action to deal with a material and sustained deviation in the Companys discount from its peer group,it seeks authority from shareholders annually to buy back sha
209、res.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 companies,the Companys discount is higher than desired and shares are available to purchase in the market.The Board is of the view that the princip
210、al purpose of share repurchases is to enhance NAV for 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 volatility of the discount at which the shares trade in relation to the under
211、lying NAV.Ordinary Shares in IssueAs at 31 October 2020 the Company had 45,965,159(2019:45,965,159)Ordinary shares in issue(excluding shares held in treasury).The Company also held 8,653,348 Ordinary shares in treasury(2019:8,653,348).Purchases of Own SharesDuring the year ended 31 October 2020,the
212、Company purchased none of its Ordinary shares(2019:81,937 Ordinary shares all of which are held in treasury in accordance with its general share buyback authority).The Companys discount management policy is described above.The Companys present authority to make market purchases of its own Ordinary s
213、hares will expire at the conclusion of the AGM 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 Company will either be cancelled,or if the Directors so determine,held in treasury(and may be re-sold).
214、Purchases of own shares will only be made at a price representing a discount to NAV per Ordinary share.Allotment of Shares and Disapplication of Pre-Emption RightsAt the forthcoming AGM,an ordinary resolution will be proposed to confer an authority on the Directors,in substitution for any existing a
215、uthority,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 passing of the resolution(up to a maximum of 2,298,257 Ordinary shares based on the number of Ordinary shares in
216、 issue as at the date of this report).A further resolution will be proposed as a special resolution to provide the Directors with the 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 f
217、uture issues of Ordinary shares,or sales of shares from treasury,will only be undertaken at a premium to the prevailing NAV per Ordinary share.These authorities will expire at the conclusion of the AGM in 2022.The Directors consider that the authorities proposed to be granted at the AGM are necessar
218、y to retain flexibility,although they do not,at the present time,have any intention of exercising such authorities.Significant ShareholdersAs at 31 October 2020,the Company had been notified of the following significant shareholdings of the issued Ordinary shares(excluding treasury shares).24Annual
219、Report 2020Holding%City of London Investment ManagementCompany Limited13,260,72428.8Lazard Asset Management LLC10,331,685 22.5Wells Capital Management Inc9,024,498 19.61607 Capital Partners,LLC5,589,12812.2Since the end of the year,the Company has been notified that Wells Capital Management Incs hol
220、ding has changed to 9,274,498 Ordinary shares(20.2%)and 1607 Capital Partners,LLCs holding has changed to 5,480,870 Ordinary shares(11.9%).There have been no other changes notified to the Company as at the date of this Report.Non-Mainstream Pooled Investments(“NMPIs”)Financial Conduct Authority(“FCA
221、”)rules determine which investment products can be promoted to ordinary retail investors.Under of these rules,certain investment products are classified as NMPIs and as a result face restrictions on their promotion to retail investors.The Company currently conducts its affairs so that its shares can
222、 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 excluded from the FCAs restrictions which ap
223、ply 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 opportunity to review the future of the Company
224、at appropriate intervals.At the 2018 AGM,a resolution was approved by shareholders that the Company should continue in existence in its current form until the AGM to be held in 2023.If the vote to continue is not passed at the 2023 AGM then,within four months of that resolution failing,the Directors
225、 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 law and regulations.If the resolution is passed,the Company will continue in operation and a similar resolution will
226、be put to shareholders at every fifth AGM thereafter.Automatic Exchange of InformationForeign Account Tax Compliance Act(“FATCA”)FATCA legislation,which was introduced in the United States of America,places obligations on foreign financial institutions such as the Company.In Guernsey,local law has b
227、een introduced that gives effect to the FATCA requirements and certain reporting obligations are placed on financial institutions as defined by this act.The Company is registered as a reporting financial institution and is subject to ongoing reporting obligations under the legislation.The Common Rep
228、orting 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 the Organisation for Economic Cooperation and Development.Guernsey has introduced local legislation to give effect to CRS.Guer
229、nsey financial institutions are required to identify,review and report on accounts maintained by them which are held by account holders resident in jurisdictions with which Guernsey has agreed to exchange information.Depositary and Custody ServicesNorthern Trust(Guernsey)Limited has been appointed t
230、o provide depositary and custody services to the Company.ManagementSince 1 June 2016,the Companys Alternative Investment Fund Manager has been Aberdeen Standard Fund Managers Limited(“ASFML”),which is a wholly owned subsidiary of Standard Life Aberdeen plc and is authorised and regulated by the FCA.
231、ASFML has been appointed to provide investment management,risk management and promotional activities to the Company.The Companys portfolio is managed by Aberdeen Asset Managers Limited(“AAML”)by way of a group delegation agreement in place between ASFML and AAML.Promotional activities have also been
232、 delegated to AAML.Further details of the key terms of the agreement and fees payable to the Manager can be found in note 6 to the financial statements.Alternative Investment Fund Managers Directive(“AIFMD”)The Company appointed ASFML as its Alternative Investment Fund Manager(“AIFM”)with effect fro
233、m 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 the Annual 25Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinanc
234、ial StatementsCorporate InformationDirectors Report ContinuedReport available to the FCA.The investment funds sourcebook of the FCA details 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 Com
235、panys website(aberdeenemergingmarkets.co.uk).Management EngagementIn accordance with the requirements of the FCAs Listing Rules,the Management Engagement Committee has reviewed whether to retain ASFML as the Manager of the Company.The Management Engagement Committee has agreed that,given the perform
236、ance of the Company and the specialist knowledge of ASFML,it is in the best interests of shareholders as a whole to continue with ASFMLs appointment as Manager to the Company.Company Secretary and AdministratorsVistra Fund Services(Guernsey)Limited(“Vistra”)is appointed as Administrator and Secretar
237、y 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 6 to the financial statements.Payment of SuppliersIt is the Companys payment pol
238、icy 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 proportion of expenses,including management and administrati
239、on fees,are paid within the month when invoiced.There were no overdue amounts owing to trade creditors at 31 October 2020.Settlement of Share TransactionsTransactions in the Companys Ordinary shares are settled by the CREST share settlement system.DonationsThe Company did not make any political or c
240、haritable 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 financial statements and a summary of the ass
241、essment is provided below.At the AGM held in April 2018,a resolution was approved by shareholders that the Company will continue in existence in its current form until the AGM to be held in 2023,at which time a further continuation vote will be put to shareholders.The Directors believe that the Comp
242、any has adequate resources to continue in operational existence for at least 12 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
243、at 31 October 2020,the Company held 8.3 million in cash and 325.0 million in investments.It is estimated that approximately 68%of the investments held at the year end could be realised in one month.The total operating expenses for the year ended 31 October 2020 were 3.1 million,which on an annualise
244、d basis represented approximately 1.02%of average net assets during the year.The Company also incurred 0.2 million of finance costs.At the date of approval of this report,based on the aggregate of investments and cash held,the Company has substantial operating expenses cover.The Companys net assets
245、at 16 February 2021 were 397.6 million.The Company has a 25 million revolving loan facility with RBSI,maturing on 26 March 2021.The Company has commenced discussions with RBSI and the Board expects to renew the facility on similar terms when it matures.As at 31 October 2020,12.5 million was drawn do
246、wn from the RBSI facility.The liquidity of the Companys portfolio,as mentioned above,sufficiently supports the Companys ability to repay its borrowings at short notice.In light of the COVID-19 pandemic,the Directors have fully considered and assessed the Companys portfolio of investments.A prolonged
247、 and deep market decline could lead to falling values of the investments or interruptions to cashflow.However,the Company currently has more than sufficient liquidity available to meet any future obligations.The Directors are satisfied that it is appropriate to adopt the going concern basis in prepa
248、ring the financial statements and,after due consideration,that the Company is able to continue in operation for a period of at least 12 months from the date of approval of these financial statements.COVID-19The rapid spread of COVID-19 led governments across the globe to implement policies to restri
249、ct the gathering,interaction and/or movement of people.These policies have inevitably impacted and changed the nature of the operations 26Annual Report 2020of some aspects of the Company,its key service providers and companies in its investment portfolio.Share prices respond to assessments of future
250、 economic activity as well as their own forecast performance,and the COVID-19 pandemic has had a materially negative impact on the economy and may continue to do so for an unknown period of time.During the year,stock markets have seen unprecedented movements in prices and in some cases,uncorrelated
251、with underlying valuations.The Board and Investment Manager have regular discussions to assess the impact of emerging risks,including COVID-19 on both the investment portfolio and on its ability to maximise returns for shareholders.The market and operational risks associated with the COVID-19 pandem
252、ic,and the ongoing economic impact of measures introduced to combat its spread were discussed and are continually monitored by the Directors.The Investment Manager,Administrator and other key service providers are providing regular updates on operational resilience.The Directors are satisfied that t
253、he key service providers have the ability to continue to operate efficiently in a remote or virtual working environment.Viability StatementThe continuation of the Company is subject to the approval of shareholders every five years,with the next vote due to take place at the AGM in 2023.The Directors
254、 have assessed the prospects of the Company over the period from the date of this report up until 31 October 2023(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 taki
255、ng into account the long-term nature of the Companys investment strategy.In their evaluation of the prospects of the Company,the Directors have carried out a robust assessment of the emerging and principal risks facing the Company,including those that would threaten its business model,future perform
256、ance,solvency or liquidity,as set out on pages 22 and 23 of this report.Developments in emerging markets and portfolio changes are discussed at quarterly Board meetings and the internal control framework of the Company is subject to formal review on at least an annual basis.The Companys portfolio co
257、nsists of a range of funds and other products which provide exposure to emerging markets.Under normal market conditions,the majority of 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
258、,the ability of the Company to realise its investments.The Directors do not expect there to be any material increase in the annual ongoing 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
259、 Companys operating expenses,and any other costs likely to be faced by the Company over the Period.Taking the above into account,the Directors 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 Ch
260、annel Islands Limited(“KPMG“)was re-appointed as auditor of the Company at the AGM held in April 2020.A resolution for the re-appointment of KPMG Channel Islands Limited as auditor of the Company is to be proposed at the forthcoming AGM.Annual General Meeting(“AGM”)The AGM will be held on 20 April 2
261、021.Due to the uncertainties caused by the COVID-19 pandemic and,in particular,the restrictions on public gatherings and requirements to socially distance,it is likely that the Annual General Meeting will be held on a functional only basis,satisfying the minimum legal requirements.Further details ar
262、e provided in the Chairmans Statement.The notice of AGM is included in this document.Corporate GovernanceThe Corporate Governance Statement on pages 28 to 33 forms part of this report.Statement of Directors ResponsibilitiesThe Statement of Directors Responsibilities on page 41 forms part of this rep
263、ort.Helen Green DirectorWilliam Collins Director 18 February 202127Aberdeen Emerging Markets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationCorporate Governance StatementThis Corporate Governance Statement forms part of the Directors Rep
264、ort.The Board of Aberdeen Emerging Markets Investment Company Limited(the“Company”)has considered 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(“A
265、IC Guide”)as issued in February 2019 and available on the AICs website(theaic.co.uk).The AIC Code,as explained by the AIC Guide,addresses all of the principles set out in the UK Corporate Governance Code,issued in July 2018 and available on the FRCs website(frc.org.uk),as well as setting out additio
266、nal 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 AIC Guide(which incorporates the UK Corporate Governance Code),will provide better informat
267、ion 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 requirements of the Guernsey Code.The Company has complied with the recommendations of the AIC
268、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:-interaction with the workforce(provisions 2,5 and 6);-the role and responsibility of the chief executive(provisions 9 and 14);-previous exper
269、ience of the chairman of a remuneration committee(provision 32);and-executive directors remuneration(provisions 33 and 36 to 40).The Board considers these provisions are not relevant to the position of the Company,being an externally managed investment company.The Company has therefore not reported
270、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,ensuring that their in
271、terests 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 be assessed and manag
272、ed.CompositionMr Hadsley-Chaplin was appointed by the Board on 26 April 2012,Mr Collins was appointed by the Board on 14 June 2012,Mrs Green was appointed by the Board on 1 July 2016,Ms de Rochechouart was appointed by the Board on 16 April 2019 and Mr Hawkins was appointed as a Director of the Comp
273、any with effect from its commencement on 16 September 2009.All the Directors hold their office in accordance with the Companys Articles of Incorporation.Mr Hadsley-Chaplin was appointed Chairman of the Board on 10 April 2017.All Directors are considered by the Board to be independent at the date of
274、this report.An insurance policy covering Directors and officers liabilities is maintained by the Company.Board DiversityThe Companys policy is that the Board should have a broad range of skills and diversity.The Board performs an annual review of its performance and these factors form part of that r
275、eview process.At the year end,the Board comprised three male and two female Directors.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 reviewing Board composition.Mark Hadsley-Cha
276、plin(Chairman)United Kingdom resident-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 responsible for the management and development of the banks
277、Asian equity business worldwide.Mr Hadsley-Chaplin holds no other public company directorships.28Annual Report 2020John Hawkins-United Kingdom resident-is a Fellow of the Institute of Chartered Accountants in England and Wales.He was formerly Executive Vice President and a member of the Corporate Of
278、fice of The Bank of Bermuda Limited.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 Raffles Asia Investment Company Limited.William Collins(Senior Independent Director)Guernsey resident-has over 45 years experience in bank
279、ing 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 1995 he was appointed a director and from 2003 until August 20
280、07 was Managing Director of Baring Asset Management(CI)Ltd.Mr Collins holds no other public company directorship.Helen Green-Guernsey resident-is a chartered accountant and has been employed by Saffery Champness,a top 20 firm of chartered accountants,since 1984.She qualified as a chartered accountan
281、t in 1988 and became a partner in the London office in 1998.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-executive director on the boards of a number of companies in various jurisd
282、ictions.Mrs Green holds other public company directorships in UK Mortgages Limited,Landore Resources Limited,CQS Natural Resources Growth and Income plc and JPMorgan Global Core Real Assets Limited.Eleonore de Rochechouart-United Kingdom resident-is a partner of ResFamiliaris LLP,a wealth management
283、 advisory boutique designed for families looking for a dedicated and independent service covering all aspects of their global wealth including financial and non-financial assets.Prior to joining ResFamiliaris in 2010,Ms de Rochechouart spent 20 years in the financial services industry as an economis
284、t,researcher and asset allocator in both the traditional and alternative investment arena.Ms de Rochechouart holds no other public company directorships.Boards Policy on TenureIn normal circumstances,it is the Boards expectation that Directors will not serve beyond the Annual General Meeting followi
285、ng the ninth anniversary of their appointment.However,the Board takes the view that independence of individual Directors is not necessarily compromised by length of tenure on the Board and that continuity and experience can add significantly to the Boards strength.The Board believes that recommendat
286、ion for re-election should be on an individual basis following a rigorous review which assesses the contribution made by the Director concerned,but also taking into account the need for regular refreshment and diversity.It is the Boards policy that the Chairman of the Board will not normally serve a
287、s a Director beyond the Annual General Meeting following the ninth anniversary of his or her appointment to the Board.However,this may be extended in certain circumstances or to facilitate effective succession planning and the development of a diverse Board.In such a situation the reasons for the ex
288、tension will be fully explained to shareholders and a timetable for the departure of the Chairman clearly set out.The Role of the Chairman and Senior Independent DirectorThe Chairman is responsible for providing effective leadership to the Board,by setting the tone of the Company,demonstrating objec
289、tive judgement and promoting a culture of openness and debate.The Chairman facilitates the effective contribution and encourages active engagement by each Director.In conjunction with the Company Secretary,the Chairman ensures that Directors receive accurate,timely and clear information to assist th
290、em with effective decision-making.The Chairman acts upon the results of the Board evaluation process by recognising strengths and addressing any weaknesses and also ensures that the Board engages with major shareholders and that all Directors understand shareholder views.The Senior Independent Direc
291、tor acts as a sounding board for the Chairman and acts as an intermediary for other Directors,when necessary.Working closely with the Nomination Committee,the Senior Independent Director takes responsibility for an orderly succession process for the Chairman,and leads the annual appraisal of the Cha
292、irmans performance.The Senior Independent Director is also available to shareholders to discuss any concerns they may have.Directors ShareholdingsAt 31 October 2020 and at the date of this report,the Directors had the following shareholdings in the Company.29Aberdeen Emerging Markets Investment Comp
293、any LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationCorporate Governance Statement ContinuedOrdinary shares at the date ofthis reportOrdinary shares At 31 October 2020Ordinary shares At 31 October 2019M Hadsley-Chaplin30,00030,00030,000W Collins15,00015,000
294、15,000J Hawkins30,00020,00010,000H Green1,8001,8001,800E de RochechouartA procedure has been adopted for the Directors,in the furtherance of their duties,to take independent professional advice at the expense of the Company.Directors are encouraged to attend industry and other seminars,including cou
295、rses run by the AIC,covering issues and developments relevant to investment companies.Board MeetingsThe actual number of meetings of the Board and Committees for the year under review is given below,together with individual Directors attendance at those meetings.The first number in the table is the
296、meetings attended by the individual Director and the second number is the number of meetings that Director was eligible to attend.BoardNomination CommitteeAudit CommitteeManagement Engagement CommitteeRemuneration CommitteeM Hadsley-Chaplin4/41/1n/a1/11/1W Collins4/41/13/31/11/1J Hawkins4/41/13/31/1
297、1/1H Green4/41/13/31/11/1E de Rochechouart4/41/13/31/11/1In addition,there were four Board meetings to deal with matters relating to the loan facility renewal and the approval of dividends.Re-election of DirectorsThe services of each of the Directors are provided under the terms of letters of appoin
298、tment between each of them and the Company.Each Directors appointment is for an initial three year period subject to renewal and termination upon three months notice.In line with corporate governance best practice,all of the Directors,apart from those stepping down,will retire and offer themselves f
299、or election at the Annual General Meeting of the Company to be held on 20 April 2021.The Board recommends all the Directors stand for election for the reasons highlighted in the performance evaluation section of this report and as stated above.Mr John Hawkins has been a Director of the Company since
300、 2009 and has given notice to the Board of his intention to step down at the upcoming Annual General Meeting.30Annual Report 2020Conflicts of InterestAs required by law,a Director must avoid a situation where he or she has an interest that conflicts with the Companys interests.The Companys Articles
301、of Incorporation provide the Directors authority to authorise potential conflicts of interest.The Directors are able to impose limits or conditions when giving authorisation if they think this is appropriate.The procedure observed by the Board in considering dealing with conflicted matters is as fol
302、lows:Any Board member so conflicted must recuse themself from the discussion involving the relevant conflict;Only Directors who have no interest in the matter being considered are able to debate the matter and take the relevant decision;and In taking the decision the Directors must act in a way they
303、 consider,in good faith,will be most likely to promote the Companys success.The Directors have declared any potential conflicts of interest to the Company.These are entered into the Companys register of potential conflicts,which is reviewed regularly by the Board.The Directors are obliged to advise
304、the Company Secretary as soon as they become aware of any potential conflicts of interest.Board CommitteesThe Company 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
305、 to deal with specific matters.Audit CommitteeA report on pages 37 and 38 provides details of the role,composition and meetings of the Audit Committee together with a description of the work of the Committee in discharging its responsibilities.Mrs Green is the Chairman of the Audit Committee.The Aud
306、it Committee has formal terms of reference and copies of these are available on request from the Company Secretary and on the Companys website.Management Engagement CommitteeThe Company has established a Management Engagement Committee which at the year end comprised all the independent Directors,na
307、mely,Mr Hadsley-Chaplin,Mr Collins,Mr Hawkins,Ms de Rochechouart and Mrs Green.The Committee meets formally at least on an annual basis to consider the appointment and remuneration of the Manager.The Committee also considers the appointment and remuneration of other suppliers of services to the Comp
308、any.Mr Hadsley-Chaplin is Chairman of the Management Engagement Committee.The Committee has formal terms of reference and copies of these are available on request from the Company Secretary and on the Companys website.Nomination CommitteeThe Company has established a Nomination Committee which at th
309、e year end comprised Mr Collins,Mrs Green,Mr Hawkins,Ms de Rochechouart and Mr Hadsley-Chaplin.The Committee has been established for the purpose of considering the composition of the Board as a whole and for identifying and putting forward candidates for the office of Director of the Company and me
310、ets 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.Mr Collins is Chairman of the Nomination Committee.The Nomination Committee has formal terms of reference and copies of these ar
311、e available on request from the Company Secretary and on the Companys website.Remuneration CommitteeThe Company has established a Remuneration Committee,which at the year end comprised Mr Collins,Mr Hadsley-Chaplin,Mr Hawkins,Ms E de Rochechouart and Mrs Green.The Committee meets at least on an annu
312、al basis to consider the remuneration of the Directors.The Committee reviews 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 other comparable data.Mr Collins is the Chairma
313、n of the Remuneration Committee.The Remuneration Committee has formal terms of reference and copies of these are available on request from the Company Secretary and on the Companys website.Performance EvaluationA formal annual performance appraisal process is performed on the Board,the committees,an
314、d the individual Directors.The appraisal is performed internally and the 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 31Aberdeen Emerging Mark
315、ets Investment Company LimitedOverviewStrategic ReportPortfolioGovernanceFinancial StatementsCorporate InformationCorporate Governance Statement Continuedby the Chairman and are then discussed with the Board so that any necessary action can be considered and undertaken.A separate appraisal of the Ch
316、airman is carried out under the supervision of the Senior Independent Director 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 2020 demonstrated that the structure of the Board and the diverse
317、experience 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
318、 for this 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 appli
319、ed the Financial Reporting Councils(“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 undertak
320、en a review of the aspects covered by 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 arrang
321、ements,set out below,represent an appropriate 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 matr
322、ix to consider the main risks and controls 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 Manager,the management of the investment portfolio,the custodial services(which include the safeguar
323、ding of the assets),the registration 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
324、 to the affairs of the Company.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 informat
325、ion upon which business decisions 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 esta
326、blished by the 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 Boar
327、d meetings,review by the 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
328、 Board keeps under its own direct control all material payments out of the Company other than for investment purposes.The Statement of Directors Responsibilities in respect of the financial statements is on page 41 and a statement of going concern is on page 26.The Independent Auditors Report is on
329、pages 44 to 46.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 there is regular contact with the Manager,the Administrator,the UK Administration Agent and the external Auditor.The
330、 Company Secretary reports in writing to the Board on operational and compliance issues prior to each meeting,and otherwise as necessary.Upon joining the Board,any new Directors receive an induction and other relevant training is available to Directors on an ongoing basis.32Annual Report 2020Directo
331、rs 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 writing to the Board co
332、ncerning 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 Company Secretary,which i
333、s responsible to the Board for ensuring that Board procedures are followed and that applicable rules and regulations are complied with.This contact with the Manager,Administrator,UK Administration Agent and the external Auditor enables the Board to monitor the Companys progress towards its objectives and encompasses an analysis of the risks involved.These matters are assessed on an ongoing basis t
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