Fund of the week - Latin America: better than Asia?

It's hard to think of any markets untouched by the ructions in the global economy. But one that is proving more resilient than most is Latin America.

Most developed markets are a mess the S&P 500 is down 12% and the FTSE 13% year to date but Latin America has fared rather better: it

is down only 4%. And Dean Newman's Invesco Perpetual Latin America Fund has done better still. It has fallen this year, but only by 3.4%, which, given the environment, really isn't bad.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Long-term investors are also likely to be forgiving: over the past five years, the fund has returned 604%, outperforming the MSCI emerging markets Latin America index, which posted a 587% return. And now? "My perspective is that it (the region) offers reasonable value. It is cheaper than some other emerging markets, certainly cheaper than Asia," says Newman in The Daily Telegraph.

The majority of the fund, almost 65%, is currently invested in Brazil a particular beneficiary of the commodities supercycle, with another sizeable chunk in Mexico. The rest is split between cash and other small stakes in Chile and Peru.

Contact: 020-7065 4000

Invesco Perpetual Latin America Fund top ten holdings

Name of holding, % of assets

Petroleo Brasileiro SA Petrobras, 11.40

Companhia Vale Do Rio Doce, 9.90

America Movil Sab De CV, 5.60

Banco Bradesco SA, 3.80

Banco Itau Pref, 3.60

Ambev, 3.40

Unibanco Holdings SA, 3.00

Telmex Corp SA, 2.60

Fomento Economico Mexcano Sab De CV, 2.30

SLC Agricola SA, 1.80