Dear Shareholder,
We present this Semi-Annual Report which covers the activities of Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. (the Fund) for the six-month period ended April 30, 2013. The Funds principal investment objective is to seek long-term capital appreciation. The Fund seeks to achieve this investment objective investing primarily in equity securities of emerging markets smaller companies.
Change to Name and Investment Policies
On March 14, 2013 Aberdeen Emerging Markets Telecommunications and Infrastructure Fund, Inc., announced that its shareholders had voted in the affirmative along with the Board of Directors to change certain investment policies of the Fund. As a result of these policy changes, effective March 15, 2013, the Funds new investment policies are as follows: a fundamental policy, under normal market conditions, at least 80% of the Funds net assets, plus any borrowings for investment purposes, will be invested in equity securities of emerging market smaller company issuers. An emerging market country is any country determined by Aberdeen Asset Managers Limited, the Funds investment adviser (the Adviser), to have an emerging market economy, considering factors such as the countrys credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries for purposes of this policy can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. Smaller companies for the purposes of this policy can be companies that, at the time of purchase, have a market capitalization of less than $5 billion. The Fund may, at the full discretion of the Adviser, focus its investments in securities of companies from each of the infrastructure, telecommunications and technology sectors of emerging market countries. The portion of the Funds portfolio invested in securities of companies from each of such sectors will vary from time to time, based on the Advisers view of current market conditions.
The Fund will not concentrate its investments in any industry or group of industries. The Fund invests in common stock, but may also invest in other types of equity securities, including preferred stock, convertible securities, depositary receipts and rights and warrants to buy common stock. As a fundamental investment restriction, the Fund may not invest more than 25% of its total assets in the securities of issuers in any single industry, except that this limitation will not be applicable to the purchase of obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities.
The approved changes did not alter the Funds investment objective of seeking long-term capital appreciation. To reflect the new
investment policies, the Funds name changed to Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. The Fund continues to trade on the NYSE MKT under its ticker symbol (ETF).
Total Return Performance
For the six months ended April 30, 2013, the total return to shareholders of the Fund based on the net asset value (NAV) of the Fund, net of fees, was 5.4%, assuming reinvestment of dividends and distributions versus a return of 13.5% for the Funds new benchmark, the MSCI Emerging Markets Small Cap Index.
Share Price and NAV
For the six months ended April 30, 2013, based on market price, the Funds total return was 4.9%, assuming reinvestment of dividends and distributions. The Funds share price increased 4.4% over the six months, from $20.65 on October 31, 2012 to $21.55 on April 30, 2013. The Funds share price on April 30, 2013 represented a discount of 10.4% to the NAV per share of $24.05 on that date, compared with a discount of 10.0% to the NAV per share of $22.95 on October 31, 2012.
Open Market Repurchase Program
The Funds policy is generally to buy back Fund shares on the open market when the Fund trades at certain discounts to NAV. During the six months ended April 30, 2013 and fiscal year ended October 31, 2012, the Fund did not repurchase any shares.
Portfolio Holdings Disclosure
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds Form N-Q filings are available on the SECs website at http://www.sec.gov and may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund makes the information on Form N-Q available to shareholders on the Funds website or upon request and without charge by calling Investor Relations toll-free at 1-866-839-5205.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve months ended June 30 is available by August 30 of the relevant year: (i) upon request and without charge by calling Investor Relations toll-free at 1-866-839-5205; and (ii) on the SECs website at http://www.sec.gov.
Investor Relations Information
As part of our ongoing commitment to provide information to our shareholders, I invite you to visit the Fund on the web at