Bestinvest says
The fund’s flexibility with regard to the lack of benchmark constraints can be important in emerging markets, where foreign sentiment is volatile and liquidity conditions can shift quickly.
The fund aims for capital growth by investing in equity markets of South and Central America, including Mexico, and the Caribbean. Asset allocation is determined by a series of bi-monthly stock and portfolio meetings. The key focus of the investment process is stock selection although the implications of macroeconomic issues across emerging markets are considered. This top down analysis influences the regional and country allocation, while the valuation driven bottom up stock research determines the stock selection within the countries or sectors. During the investment process the managers consider the countries in the benchmark that are strategically influential, but there are no formal benchmark constraints.