Forget Brazil, look to the Andean markets

EMERGING MARKETS

Julian Mayo, co-CIO of Charlemagne Capital, explains why the smaller LatAm markets are worth a bet in place of Brazil or Mexico.

Chile, Colombia and Peru have delivered impressive GDP growth in recent years. This in turn has boosted their stock markets, which have outperformed not only the wider Latin American region but also emerging markets more generally. The MSCI index for Latin America returned 4% over five years to the end of September. These three economies are to some extent commodity focused, and sustained high commodity prices were undoubtedly a key reason behind this success story. But, in an uncertain global environment and with Chinese demand slowing, investors have started to question whether their h...