Investment Week, 28 April 2023:
In this month’s ‘Four graphs explaining’ our experts consider the Latin American market.
Andrew Courtney, analyst at QuotedData
Outside of some pockets of optimism, Latin America has slipped from one crisis to another over the past few decades. GDP has been anaemic at best, currencies have tumbled, and its regions have been ravaged by Covid. Not surprisingly, investment returns have fared no better. Both of the sector’s trusts – abdrn Latin America income and BlackRock Latin American – are down around 50% since 2010 compared to a return of over 100% for the MSCI ACWI. The stress has finally showed for ALAI, by far the smaller of the two, which recently announced a proposal to wind up the trust. While other EMs look to stage a comeback, Latin America still seems stuck in neutral.
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