Leading offshore legal services provider Appleby has advised on the establishment of the Aberdeen Latin American Income Fund Limited (the ‘Fund’), the first UK-listed Latin American closed-ended fund with an income bias. The Fund, which was established in Jersey under the listed fund regime, raised approximately £52 million during its initial offering and is listed on the Main Market of the London Stock Exchange.
The investment manager of the Fund is Aberdeen Asset Managers Limited which is a wholly-owned subsidiary of Aberdeen Asset Management PLC. The investment objective of the Fund is to provide investors with an above average yield, primarily through investing in Latin America. The initial target for the dividend yield is 4.25%, with the aim of growing dividends over time. Dividends will be paid quarterly.
Initially the portfolio blend will be approximately 60% invested in listed equities and the balance invested in sovereign bonds. The equities will be focused on growth-orientated stocks, with the bonds expected to provide much of the income. The blended portfolio approach will allow the asset allocation to be modified in response to changing economic circumstances.
Appleby Partner and Group Head of Corporate and Commercial in Jersey Mark Lewis led the team in Jersey, along with Senior Associate Alex Last. Mark Lewis commented, “This fund again highlights the growing importance of the BRIC economies for Jersey and demonstrates, in particular, that Jersey fund structures are an effective and popular choice for investment into Latin America. We are delighted to have been so involved with the establishment of this innovative fund”.
Bruce Harrison, Managing Director of Aberdeen in Jersey added, “We are delighted with the success of this launch. We believe that Latin America has made huge strides to become an important current and future contributor to global growth, and the Fund is well positioned to take advantage of this whilst also providing investors with an attractive yield.”