Invesco Latin American (UK)

Invests primarily in South and Central America and the Caribbean

  • 99.16p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 125.16p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.75%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 November 2020, fund data last updated 02 August 2011

The fund aims for capital growth by investing in equity markets of South and Central America, including Mexico, and the Caribbean. There will be substantial exposure to Brazil due to the investment universe. Taking advantage of internal and external research, this actively managed fund uses top down macro analysis to determine geographic allocation and bottom up stock selection within those regions to construct the portfolio. It should be regarded as higher risk compared to the more diversified emerging markets funds.

Fund summary

Sector Specialist
Structure OEIC
Launched November, 1994
Size £68m
Yield 0.80%
Charging basis Income
Dividends paid 31 Oct

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.75%

Allocation

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Investment process

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.

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.

Manager research

Average monthly relative returns

  • 15/16 -0.42%
  • 16/17 -0.40%
  • 17/18 -0.08%
  • 18/19 0.04%
  • 19/20 -0.42%

Bestinvest MRI

  • 3 years -0.15%
  • 5 years -0.26%
  • Career -0.09%
  • 3 years 42.50%
  • 5 years 28.40%
  • Career 57.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Dean Newman

After graduating from Durham University with a BA (Hons) Economics and Politics, Newman began his investment career at Legal and General in 1985, where he covered the UK equities markets before moving to Japanese bank, Sanwa, in 1991, where he was Head of UK Equities. Newman joined INVESCO in 1993 as part of the Global Emerging Markets Investment team and is now Head of Emerging Markets.

Track record

Dean Newman has 16.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.09%. During the worst period of relative performance (from April 2004 - September 2020) there was a decline of 25% relative to the index. The worst absolute loss has been 53%.

Periods of worst performance

Absolute -53.00% (December 2010 - January 2016)
Relative -25.00% (April 2004 - September 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

9.21% Petroleo Brasileiro Sa Petrobras
7.95% Itau Unibanco Hldg Sa
6.9% Banco Bradesco
6.89% Vale Sa
3.72% Telefonica Brasil Sa
3.63% Credicorp
3.39% Wal-Mart De Mexico Sab De Cv
3.37% Fomento Economico Mexcano Sab De Cv
3.31% Arca Continental Sab De Cv
3.11% Suzano Hldg Sa
Source: Trustnet

Sector breakdown

Financials 25.00%
Materials 22.00%
Consumer Staples 12.00%
Consumer Discretionary 10.00%
Energy 9.00%
Communications 8.00%
Utilities 6.00%
Industrials 5.00%
Real Estate 2.00%
Information Technology 2.00%

Portfolio

Portfolio consists of 40-60 stocks. Preference for small and mid cap stocks.

Constraints

Benchmark MSCI EMF Latin America is used for guidance purposes only.

Key Investor Information - Income

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Key Investor Information - Accumulation

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