Despite the recent stockmarket turmoil, which, as usual, hit emerging markets harder than their developed peers, Will Landers of Merrill Lynch Latin America Trust remains upbeat on prospects for the region. He points out to Investment Week that Latin American markets are among the cheapest in the world, despite falling government debt, sliding inflation and the commodity boom.
Landers has played these trends well over the past three years the trust has returned 196.5% against a 60.7% return on its benchmark. The key to his success, he says, has been investing in top-performing small- and mid-cap stocks in the region's three top markets: Brazil, Mexico and Chile. Brazil dominates the fund, accounting for 60% of its holdings. Landers is confident that the Brazilian Central Bank will continue to cut interest rates and so plans to keep playing consumer demand and credit growth in the year ahead, through stocks such as Banco Bradesco and Companhia de Bebidas das Americas, a Brazilian beverages group.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Merill Lynch Latin America Trust top ten holdings
-
Will “Liberation Day” strike again?Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with IranDonald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran
