ASI Latin American Equity Fund I Acc

Emerging Markets

Rated Fund 2018-19. A team-based approach based on fundamental research

Aberdeen Latin American Equity, with its solid performance record and strong ratings, replaced two outgoing Latin American funds in 2018. It has underperformed its benchmark over the past year, owing in large part due to its significant weighting to Mexico. Its stock market plunged almost 20% last year due to political headlines and ongoing US/Mexico tensions.

We continue to rate the team approach and depth of the analytical resource of the Aberdeen Standard global emerging markets team. The longevity and stability of the team is a huge component of its success. The approach is collegiate and any decision must be approved by the whole team before being implemented within the portfolio.

The process reflects the team’s strong emphasis on quality, growing companies with management that is able to facilitate this growth. The portfolio boasts 43 companies with attributes such as sustainable, competitive business models, strong balance sheets, high returns on assets and capital, and good corporate governance. The process is entirely based on fundamental research, with four to five company visits typical before an investment is made. This quality focus is paired with a valuation discipline that ensures the managers do not overpay for growth.

FundCalibre, the fund ratings and research provider, rates this ‘Elite’ fund and says the asset manager’s labour-intensive and cautious approach lends itself well to volatile and less well-researched regions such as Latin America.

“Its unconstrained approach means it can build up large country positions, which makes it more susceptible to political turmoil in the region. However, the emphasis on quality means that the fund can exhibit lower volatility than some of its peers,” says Darius McDermott, FundCalibre’s managing director.  

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
ASI Latin American Equity Fund I Acc
Manager
Aberdeen Standard Fund Managers Limited
Type
Open Ended Investment Company
ISIN
GB00B4R0SD95
Sector
Specialist
Launched
01/10/2012
OCF
1.19 %
Risk Rating
5
3 Year Sharpe
0.49
3 Year Alpha
0.78
Yield
1.5 %
Benchmark
MSCI EM Latin America 10/40 NR USD
The Fund’s investment objective is long-term total return to be achieved by investing in equities and equity-related securities of Latin American companies or companies with significant activities in Latin America.
Holding %
Petroleo Brasileiro SA Petrobras Participating Preferred 8.19 %
Bank Bradesco SA 7.71 %
Itau Unibanco Holding SA 5.71 %
Grupo Financiero Banorte SAB de CV Class O 4.39 %
Bradespar SA Participating Preferred 4.16 %
Lojas Renner SA 3.97 %
Fomento Economico Mexicano SAB de CV ADR 3.80 %
B3 SA - Brasil Bolsa Balcao 3.52 %
Itausa Investimentos ITAU SA Participating Preferred 3.31 %
Wal - Mart de Mexico SAB de CV Class V 3.06 %
Region %
Latin America 97.59 %
Sector %
Financial Services 33.43 %
Consumer Defensive 18.25 %
Consumer Cyclical 12.30 %
Energy 10.44 %
Industrials 9.22 %
Name
Aberdeen Standard Fund Managers Limited
Address
EH2 2BY, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Not Disclosed
Joined 02/07/2011

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.