Fund managers are trimming commodities exposures in favor of
consumer and other industries, a survey of leading managers has
As minerals prices trend down, top fund managers in LatinFinance's 2013 equity investor
scorecard say they are reevaluating prospects for long-term
returns. A strong correlation between LatAm indices and
commodities ones opens questions over the logic of following
the benchmark, they say, as managers turn increasingly to
Schroders' Latin America Equity investment fund has been
underweight on energy and materials, particularly large caps
with scope for government intervention, said manager Nicholas
"Our focus has generally been on mid cap companies, where
you've got a more predictable demand picture," he said.
"Commodities have been pretty unpredictable." The fund ranks
sixth in the equity investor ranking.
Brazilian asset managers are taking a similar strategy.
Brasil Capital, which has the best performing equity fund in LatinFinance's Brazilian investor
scorecard, has built up positions in companies it likes.
That includes consumer firms in education and consumer
"We are still very bullish on the consumer sector," said
Bruno Baptistella, portfolio manager at Brasil Capital.
Some debt fund managers are also keen to participate in
LatAm's consumer boom. There is real value in the briskly
growing financial intermediation story across LatAm, said
Blaise Antin, head of sovereign research at TCW, whose Emerging
Markets Income Fund ranks fourth in LatinFinance's debt investor
"Credit penetration is still quite low in much of Latin
America. We think it's on a positive upward trajectory, and we
want to be part of that story," Antin said. "The deleveraging
we've seen in Europe and the US is not something that we see in
Latin America. Latin American banks came out of the Lehman
crisis in reasonably good health with most LatAm banks
traditionally employing a very plain vanilla business
See the rankings and read more comments from the top
Debt investor scorecard: Beating the
Equity investor scorecard: Bargain
Brazilian investor scorecard: Sitting