Latin America is renowned as a hotbed of political and economic upheaval but what does that mean for the bond managers vying to find attractive debt to buy in the region?
In this edition of ‘Long on bonds’, Dr. Nisha Long takes a closer look at the managers packing a punch in the specialist sector when it comes to assets and sees how they compare with the investor boasting the best returns on a risk-adjusted basis.
This video focuses on the Investec GSF Latin American Corporate Debt fund but references the holdings of Investec Latin American Investment Grade Corporate Debt fund. They are both run by the same portfolio team at Compass Group but with different investment styles.
As stated in the video, at the end of August, the largest country figures for the Latin American Investment Grade Corporate Debt fund are Mexico (28%) and Chile (24%), with the top holdings being Fresnillo PLC and financial BBVA Bancomat.
However, the Latin American Corporate Debt fund has 36.3% exposed to Brazil at a country level and only 15% invested in Mexico. This fund’s largest holdings are bonds issued by Ultrapar International, which is a Brazilian fuel distribution company, and Chilean telecoms group VTR Finance.
The performance figures correctly relate to the Investec GSF Latin American Corporate Debt fund.