225. Latin America: what the elections mean for investors

In this in-depth interview, Eduardo Figuieredo, the manager for the abrdn Latin American Equity fund, talks to us about all things Latin America. He comments on the impact of the recent elections in Brazil, as well as its rejuvenated commitment to environmental issues; the additional positive effect of the ‘check and balance’ that the newly elected, two-tier Congress and Senate will have on the financial markets. Discussing politics in Mexico, the manager also covers resilience and growth in the Mexican consumer space and its manufacturing base, as US companies look to bring supply chains closer to home.
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abrdn Latin American Equity fund is managed by abrdn’s renowned emerging markets team, whose primary investment concern is whether companies demonstrate outstanding quality characteristics, such as strong management and balance sheets. This is followed by a value approach – targeting stocks which appear to trade for less than they should do. The strategy has had considerable success across the region.

What’s covered in this episode:

  • The impact of the recent elections on the stock market
  •  The importance of the ‘check and balance’ role of Congress and Senate
  • Which sectors will benefit from revived commitment to environmental issues
  • Repositioning Brazil as a major player on the world stage in renewables
  • The direction for state-owned companies
  • The general impact of politics on stock-picking opportunities in Latin America
  • Mexico’s ‘pockets of growth’
  • The knock-on effect of disrupted supply chains in Asia, to Mexico’s benefit
  • Near-shoring and the rejuvenation of Mexico as a manufacturing base
  • How the exposure to commodities is a good source of dollars
  • The commodity and banking sectors in Latin America
  • Why investors should consider investing in Latin America
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