The trust is a pure play on Latin America, focusing on 40 to 60 holdings where strong management teams are in place. In terms of holding periods it tends to be around 18 months to 2 years, so this is very much a tactical short-term play.
There are four plays in Latin America – commodities, currencies, consumption and credit. Commodities is a big play in the region and could be a beneficiary of the trade war as China looks to Latin America for Oil, Gas and Copper.
In terms of currencies positive interest rates provide stability. Credit is positive especially in Brazil where interest rates have dropped from 14.25% to just 6%, and in Mexico there is low loan penetration which is opening up opportunities…..read more