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abrdn Latin American Equity Class I - Accumulation (GBP)

Sell:121.21p Buy:121.21p Change: 0.09p (0.07%)
Prices as at 21 May 2024
Change: 0.09p (0.07%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 21 May 2024
Change: 0.09p (0.07%)
Prices as at 21 May 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This specialist fund focuses on the main markets of Latin America, including Brazil, Mexico, Chile and Peru. The fund is run by a team with a long record of investing in these markets. They have a long-term focus but are willing to be flexible in the hunt for the best opportunities.

The fund could provide a way to gain specific exposure to Latin American companies, or diversify a portfolio invested in broader global or emerging markets funds. Higher volatility and risk should be expected from a fund like this, given it focuses on a small group of emerging economies. It should therefore only be considered to form a small part of a wider investment portfolio, focused on long-term growth.

Our view on the sector

Funds that invest in this region tend to focus on larger Latin American economies like Brazil and Mexico and have less exposure to smaller economies like Chile and Colombia. A young, enthusiastic workforce, better education, improving infrastructure and a rich variety of commodities and resources are all boosting economic growth. But political instability, corruption, and inflation are a risk in Latin America, just like in many emerging economies. For these reasons, an investment in this region is higher-risk and a long-term investment approach is essential.

Performance Analysis

The Global Emerging Markets Equity team has managed this fund since it launched in 2011, and have also run other portfolios focused on Latin American markets dating back to 2004. Over this time, the team has slightly underperformed the broader Latin American stock market. There have been certain periods of weaker performance which have hampered the fund, including the great financial crisis in 2007/08 and more recently, the COVID-19 pandemic.

Performance can be very volatile, especially when compared with funds focusing on a broader range of emerging economies or developed markets. We think this should be expected when investing in a specialist area, and from economies that continue to evolve and experience more political and economic uncertainty than developed markets. It's also worth remembering past performance isn't a guide to how the fund will perform in the future.

Investment Philosophy

The team's investment philosophy is based on 'long-term quality'. They believe most investors underestimate the sustainability of returns that many high-quality companies can make. They aim to find those that can generate fairly steady rates of growth, which have been overlooked by others, and hold onto them for many years.

Process and Portfolio Construction

Companies in good financial health, run by robust and trustworthy management teams are favoured by the team. They often look for a change that could help boost profits in future, such as a new product or change in technology. They sometimes invest in out-of-favour companies because they're often undervalued and can be bought at a more attractive share price.

Meeting company management is important to the team, and they can do this regularly as they're based throughout the emerging markets, including Latin America. They also like to engage with companies on environmental, social and governance issues, which could lead to better outcomes for both investors and society over the long run.

The result is a concentrated portfolio of around 30-35 companies, which means each investment could have a big impact on performance, which increases risk. The fund tends to invest heavily in the top two Latin American Stock Markets, Brazil, and Mexico. Sector wise, the fund has more in sectors like industrials and real estate than the broader Latin American market. In contrast, they invest less in financials and materials.

question mark Manager Track Record Based on HL Quantitative Research

  • Dankse Invest Latin Amerika
  • IA Specialist
  • AS SICAV I - Latin American...
  • abrdn Latin American Equity Fund...
  • FTSE AW Latin America TR USD

Source: Refinitiv Lipper

Fund Track Record

21/05/19 to 21/05/20 21/05/20 to 21/05/21 21/05/21 to 21/05/22 21/05/22 to 21/05/23 21/05/23 to 21/05/24
Annual return -31.63% 31.72% 3.48% 7.13% 6.68%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Aberdeen Asset Management is a global investment management group, managing assets for both institutional and retail clients from offices around the world. Aberdeen is best known for its Global Emerging Markets and Asian funds.

Aberdeen Asset Management merged with Standard Life in 2017 to become Standard Life Aberdeen plc. This later became Aberdeen Standard Investments and in July 2021, the company changed name once again to abrdn to simplify and unite under one single brand.

Investors gain access to abrdn's expertise through a range of assets including shares, fixed income and property. Aberdeen's investment teams are based in the markets or regions in which they invest giving them direct access to company management and allowing them to use local knowledge to the best of their abilities when it comes to investing.

Information about the fund

Fund manager biography

Manager Name: Global Emerging Markets Equity Team
Manager start date: 9 February 2011
Manager located in: TBC

Global Emerging Markets Equity Team

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account