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Strategic Latin America Fund Portfolio Manager Heiner Skaliks on how investors can look to Latin America to boost their portfolios.
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-- get sick of all the drama over Europe and our economy you might want to take a look at Latin America.
-- her skull -- is strategic Latin America bond portfolio manager joining us to explain.
Which companies he likes over -- when I just could go companies are we could do -- countries -- but.
Skip right to the region overall each country is extremely different different styles of government we know in some cases I'm thinking Venezuela and lots of problems over there but what are your favorite regions at least what can begin macro.
-- -- you're absolutely correct each country is different each country or what -- -- majority of the country's other own currency.
We like to take a a regional approach to to Latin American compass -- everything from Mexico down to Argentina.
And the reason being.
They have them gone through several -- -- A political and economic reforms last -- -- thirty years.
And that hasn't created a new landscape for both investments.
Opportunities as well as risks and therefore we prefer a regional approach to Latin America than than -- country by country approach but.
Is still there are countries in their country and -- I gotta start with Mexico because Mexico -- some.
Very individual concerns and interest that for the United States because its right -- border.
You see potential in the equities market some of these countries have more or less potential equities why do you see potential in the equities market in Mexico and how would you invest.
In those equities and ADRs over here or find a local trader.
Indeed David when we look a Latin America we think there opportunities both in the equity space as well as a fixed income space specifically in the case of Mexico.
And because of the proximity to the US the US being its largest trading partner any quicker than expected recovery will permeate -- to the Mexican economy and we think creating bullish market.
We also take a look at the foreign currency -- rate the Mexican peso and at this time we think it's pretty attractive given.
And in order to get exposure to Mexico you can do so either view NE TF.
Or via ADRs the trade on the New York Stock Exchange that have a reflection of the local domestic box or.
You can contact the local -- here in Mexico and -- those equities directly as well aside from Mexico of course a lot of people like Brazil I know you've kept your eye on that what the board sort of jagged countries a little more emerging market fields of them -- a couple of picks there.
Just a clarification on Brazil we figure fixed income numbers -- we don't think -- equities will not experienced significant growth why not but I think.
Well first of all I think the they slow down global slowdown will definitely have an impact on Brazil.
We don't -- that the potential for growth and companies as there or significantly strong.
Therefore we're not expecting any surprises in the equity market -- -- -- your flower market right now market and we -- fixed income.
Due to their base rate the -- which is extremely high and that provides a very interesting hurdle for investors.
I think countries like Peru and Colombia are also interesting how that equity space because of the foreign direct investment that's pouring and the policies that -- -- The way that manage their their foreign exchange rates and the because of the internal consumption that each of these countries has.
As well as the regional.
Expansion and growth strategies that companies that are situated there are having at a regional level.
Are in Chile is is a country that I'm familiar values to cover -- -- -- for the Wall Street Journal for many years in Chile was always the one that was far ahead of the others because.
It had a a devotion practically to free market economics does that continue.
Absolutely correct David -- -- -- is one of we'll by the top rated countries in Latin America it has been investment grade country for several years now.
What we're seeing is.
They reflection in interest rates especially on fixed income securities and -- leather whether or not as attractive -- an ideal substitute.
Or other higher rated countries equities have not performed significantly.
A year to date in that sense were probably on hold on concerning.
Thanks for coming in.
