View more on these topics

Latin vibes

I was recently asked to recommend a speculative fund where the returns are likely to be outstanding. I think the answer is to choose one of the Latin American funds, particularly one which invests in the stockmarkets of Mexico and Brazil.

The bigger, highly profitable companies in both these countries have virtual monopolies or duopolies. For example, in Brazil, CVRD has now overtaken Rio Tinto and BHP Billiton to become the worlds biggest supplier of iron ore. It has been able to put up prices substantially every year and expects to be able to do so again in 2007 because there is still a worldwide shortage of iron ore.

In Mexico, America Movil has 70 per cent of the mobile phone market and dominates the rest of the market in Latin America.
The two funds I like best and there is little to choose between them are Invesco Perpetual Latin American and Threadneedle Latin American.

The former is managed by Dean Newman and has gone up by 166 per cent over the last three years to November 1, 2006. His biggest holdings are Petroleo Brasileiro, Vale Do Rio Doce, America Movil, Banco Bradesco, Cemex and Telmex.

The Threadneedle Latin American fund, managed by Jules Mort, also has big holdings in all these as well as Tenaris and Wal-Mart do Mexico. This fund has increased by around 154 per cent over the past three years but is slightly ahead of the Invesco Perpetual fund over one and two years.

These funds are very speculative as both these markets have from time to time had one-week losses of over 20 per cent. On the other hand, they should continue to show excellent returns over a period but beware of a rocky ride. Only investors prepared to take high risks should invest.

Sideways Glance by Julian Gibbs


Barings introduces Ucits Russia Fund

Baring Asset Management has converted its $30m new Russia fund into a Ucits III compliant vehicle which will be available to investors from December 27.The fund will become the Baring Russia fund and currently has $30m under management.The new Russia fund has returned over 22 per cent on an annualised basis since launch compared to […]

Bradshaw takes role at Sumus

Industry veteran Paul Bradshaw has taken over as chairman at Sumus and will oversee strategy for its portfolio of adviser brands.Bradshaw replaces Mike Innes, who stands down after two years. He will work closely with the management of the Sumus brands, Falcon Group, Financial Synergies and Financial Services Advice & Support, in a non-executive role.Falcon […]

NPSS to grab 3.2bn from existing plans

Personal accounts will rip 3.2bn out of existing pension savings, according to the Government’s own estimates.Despite proposing a raft of measures to protect existing occupational pension provision, the Government estimates in the White Paper that per- sonal accounts will take 8bn in the first year, 60 per cent of which will be new savings.This means […]

Concern over pipeline policies

Life companies have confirmed they have tens of thousands of pension term assurance policies in the pipeline, which could be hit by the Government’s expected withdrawal of tax relief.Scottish Widows protection marketing manager Nick Kirwan estimates the number of PTA cases in the pipeline to be in the tens of thousands and is warning advisers […]

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm