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The fund’s investment universe comprises around 130 stocks. These are principally taken from the MSCI Latin American 10/40 index, but off benchmark stocks may also be included, often companies with Latin American assets that are listed elsewhere. This number is reduced to around 95 that the team formally cover by screens for liquidity, transparency and size. The investment process begins with allocation of capital by sector to reflect the team's economic assumptions and investment strategy. They then aim to pick the best companies in each sector. The central feature of stock selection is Return on Capital Employed (ROCE). This is because the manager believes that historically the cost of capital within the region has been very high, so identifying companies that are creating shareholder value is key. The team create financial models for all companies covered, as well as carrying out around 200 company meetings a year.