BNY Mellon Asset Management is offering a new long-only Latin America infrastructure fund.
The fund will be managed by one of the firm’s boutiques, BNY Mellon ARX Investimentos. The boutique is based in Brazil and targets multi-strategy and equity investments in the Latin American marketplace.
The company says Latin America has the highest levels of infrastructure investment in the world, with $450bn of projects in the pipeline between now and 2015. The fund will focus on capital goods, transportation, steel, telecommunications and energy companies related to infrastructure in Latin America.
It will have a concentrated portfolio of between 35-50 stocks and strict risk controls, including maximum weightings of companies and sectors in the portfolio, with the aim of preserving capital.
Head of international distribution Paul Feeney says: “The combination of a relatively long period of political stability and robust economic growth are transforming Latin America into one of the most compelling regions for investors. Recent economic data from the region strongly points towards an increase in infrastructure budgets across Latin American countries, particularly in Brazil.”
Bestinvest senior investment adviser Adrian Lowcock says: “It is certainly a niche product but in an area of the market that is growing rapidly.”