fund
Threadneedle Latin America Z
A relatively concentrated portfolio focusing on large cap stocks in Latin America
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97.24p
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.
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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?
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0.00%
Initial chargeSome 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!
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0.75%
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).
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0.94%
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.
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1.70%
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…
The portfolio aims to take advantage of opportunities throughout the economic cycle by investing in equities across Latin America. The investment process incorporates company analysis and valuation as well as judgements about sectors. The fund invests mainly in large and mid sized companies, predominantly those based in Brazil and Mexico as they dominate its investment universe.
Fund summary
| Sector | Specialist |
| Structure | OEIC |
| Launched | October, 2012 |
| Size | £313m |
| Yield | 1.70% |
| Charging basis | Income |
| Dividends paid | Acc units only |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.94% |
Allocation
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Investment process
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.
Manager research
Average monthly relative returns
- 16/17 -0.36%
- 17/18 -0.28%
- 18/19 -0.10%
- 19/20 0.21%
- 20/21 0.57%
Bestinvest MRI
- 3 years 0.23%
- 5 years 0.01%
- Career -0.01%
- 3 years 79.70%
- 5 years 62.60%
- Career 60.60%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Ilan Furman
Furman joined Threadneedle in 2011. Prior to this he worked as an investment manager at Pictet. He has also been employed at Deloitte as a consultant and at Oscar Gruss as a junior analyst. Furman has an Economics degree from Ben Gurion University in Israel and an MBA from Imperial College, London. He also holds the Chartered Financial Analyst designation.
Track record
Ilan Furman has 5.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from November 2015 - January 2019) there was a decline of 14% relative to the index. The worst absolute loss has been 43%.
Periods of worst performance
| Absolute | -43.00% (July 2019 - March 2020) |
| Relative | -14.00% (November 2015 - January 2019) |
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 May 2020
| 5.5% | Petroleo Brasileiro Sa Petrobras |
| 5.2% | Wal-Mart De Mexico Sab De Cv |
| 5% | Fomento Economico Mexcano Sab De Cv |
| 4.6% | Globant Sa |
| 4.4% | Itausa Investimentos Itau Sa |
| 4.1% | Banco Bradesco Sa |
| 4% | America Movil Sab De Cv |
| 3.9% | Vale Sa |
| 3.6% | Magazine Luiza Sa |
| 3.4% | Rumo Sa |
| Source: Trustnet |
Sector breakdown
| Financials | 18.00% |
| Consumer Discretionary | 16.00% |
| Information Technology | 13.00% |
| Materials | 12.00% |
| Consumer Staples | 12.00% |
| Energy | 6.00% |
| Industrials | 5.00% |
| Health Care | 5.00% |
| Communications | 4.00% |
| Cash & Cash Equivalents | 4.00% |
Portfolio
Approximately 40-60 holdings.
Constraints
There are no formal stock or sector constraints. Stocks with a market capitalisation below $300m are generally excluded. Tracking error targeted at 4-8%.
Key Investor Information