Latin America Strategy

Why Latin America?

Our enthusiasm for the prospects of Latin America is based on the general premises of the advantage of low cost production and consumption potential and the growing rejection on inward-looking political policies.

We believe that the best way to capture these opportunities and deliver acceptable returns for our clients is not by investing in countries or sectors, or following benchmarks but to invest in the very best companies we can find. We have always been happy owning companies listed globally, who make the majority of their money in Latin America, if we think they are good investments for our clients.

We know we cannot predict economic futures but we can try not to be on the wrong side of stock market history.

Latin America strategy update with Dominic St George

Latest insights

Latin America Strategy overview

Our enthusiasm for the prospects of Latin America is based on the general premises of the advantages of low cost production and consumption potential and the growing rejection of inward-looking political policies.

The Case for Latin America

With the weighting of Latin American stocks in the Global Emerging Markets benchmark slipping below 10%, down from 25% two decades ago, the region has become something of an investing backwater. So why then are we optimistic about the region?

We believe good stewardship is a crucial aspect of a quality company

Good stewards are custodians who understand and carry out their responsibilities with integrity and respect.

Stewardship describes owners and managers with the competence and desire to make sound long-term decisions for their businesses.

In our view, management transparency, a diversity of views, a willingness to learn from mistakes, and a keen consideration of customers, workforce and suppliers, as well as the wider community and the environment, are all indicators of good stewardship.

The interactive map below illustrates the types of stewards we look to align ourselves with for the largest holdings in our Latin American strategy, and the reasons we own shares in these companies on behalf of our clients. These range from third generation owner-managed companies, multi-national and local family partnerships to free float companies with unusually strong cultures of ownership.

Please use the + and - on the map to explore the companies.

Portfolio holdings

Source: Stewart Investors investment team and company data. Company names shown on the map are the top 10 holdings for a representative Stewart Investors Latin America Strategy account as at 31 March 2021. Reference to other company names mentioned in the rationales is merely for explaining the investment strategy and St Andrews Partners does not necessarily maintain positions in such companies. This information is provided for illustrative purposes to demonstrate Stewart Investors’ activity within the strategy for the period shown. It is not a recommendation or solicitation to purchase or invest in any fund. Any fund or stock mentioned does not constitute any offer or inducement to enter into any investment activity nor is it a recommendation to purchase or sell any security. Any stocks held/listed in non-index countries have economic activity >50% from Latin America economies.

Investment Terms

View our list of investment terms to help you understand the terminology within these rationales.

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