Investors bet on banks amid equity rebound
Equity fund flows are soaring, reversing years of exits from the asset class, yet risks still linger in Latin American stocks. The best investors are picking carefully.
As Latin American economies have gathered speed over the
past 12 months, equity fund returns have bounced back. It has
been a great year for the best performers, with returns deep
T. Rowe Price's Latin America Equity Fund, for example,
returned 27.7% in the 12 months to the end of March, and
Aberdeen Asset Management's Latin America Equity fund posted a
32.2% return, according to performance data from Lipper. The
funds rank first and second on LatinFinance's 2017
Equity Investor Scorecard, which assesses the three-year
performance of portfolios with at least 90% of their assets
invested in Latin America.
The best-performing funds notched solid returns from a wide
range of investments. Financial institutions came into fashion,
while portfolio managers took a renewed shine to Brazilian and
Indeed, Latin America’s largest economy was the
main pick for fund managers. Equity flows into...
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