IN BRIEF: Aberdeen Latin American Income outperforms benchmark
Thu, 6th May 2021 16:14
Aberdeen Latin American Income Fund Ltd - investment trust which invests primarily in Latin American securities - Net asset value per share at end of February 59.05 pence, up 4.2% on 56.65p at end of August. NAV total return 7.2% for six months to end of February, outperforming composite benchmark of MSCI EM Latin American 10/40 Index/JP Morgan GBI-EM Global Diversified Index which returns 5.8%. I was pleased to note that your managers choice of holdings was the chief contributor to the company s outperformance over this period. This is a testament to the manager s long-term approach and focus on building a high-conviction portfolio of quality stocks and bonds, firm says.
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KEY TAKEAWAYS
Misunderstood and mispriced risks associated with emerging markets debt (EMD) securities often create inefficiencies and anomalies. These irregularities can translate to attractive investment opportunities for experienced managers.
We seek to exploit these inefficiencies via a fundamental, research-driven, bottom-up approach combined with robust macro and thematic analysis and a disciplined valuation framework.
Our approach is unconstrained by benchmark limitations, allowing us to seek diversified and out-of-index sources of return. We believe active positions in duration, yield curve, country allocation, sector allocation, currency allocation, and security selection help generate a more consistent return profile.
Widely Used EMD Benchmarks
J.P. Morgan Emerging Markets Bond Index (EMBI) Global: Tracks total returns for U.S. dollar-denominated Brady bonds, traded loans and Eurobonds in addition to local market sovereign and quasi-sovereign debt securities.