Western Asset bond fund backs Latin EMs

Brazil and Mexico offer the best opportunities for investors seeking an entrance to emerging market debt, Western Asset Management Europe's director has suggested.

Speaking on behalf of the Legg Mason Global Asset Management subsidiary, Mike Zelouf (pictured) told delegates at Investment Week's Senate Investment Conference the Macro Opportunities Bond fund bought EMD late in January. He said: “We are selective in exposure to emerging markets, but we do have meaningful positions in Mexico and Brazil. Mexico because of the structural reforms they have put in place, and Brazil because of the valuations.” EM is the subject of a “long debate” among the fund’s analysts, Zelouf revealed, with the team ultimately taking a defensive position: “The EM tea...