The days of Latin America being a region associated with weak political systems, hyper-inflation and economies dependent on commodities and the US for survival are over
Today the region benefits from favourable demographics, young and growing populations, and continued urbanisation and industrialisation, which in turn is driving growth in domestic demand
Aberdeen believes this trend will continue which will drive growth in the region for many years as domestic consumption levels increase – providing better investment opportunities to investors
Benefits to investors
Many Latin American countries have implemented sound fiscal and monetary policies over the last ten years
The region benefits from favourable demographics and continued urbanisation and industrialisation
Domestic demand is increasing and should continue to grow for a number of years to come driving growth in the region
Many Latin American countries have developed strong financial systems, with more prudent banking practices which allowed them to come through the credit crisis relatively unscathed
The pool of well-managed companies is growing, levels of corporate debt have been falling and profitability has improved
Aberdeen expects good long-term returns in the asset class
Why Aberdeen for Latin American Equities?
A wealth of experience – Aberdeen have been investing in Latin America as part of our wider emerging market equity portfolios since the 1980s.
We are on the ground – We are one of the few investment managers to have a local presence in Latin America.
We are owners of companies rather than buyers of stocks – We spread risk not by buying more stocks but by constructing a portfolio that invests in a range of businesses.
Our fund managers do their own research – Third party research can often be biased and unreliable, so we do our own. Company visits are rotated among the team to ensure we remain objective in our analysis.
Consistent process – Our process has delivered performance through the good times and the bad.
Buy and hold – We disregard short-term market noise and hold our investments for the long-term.
