Fund Objective

The investment objective of Neptune Latin America Fund is to generate capital growth from investment predominantly in Latin American securities, or in the securities issued by companies transacting a significant proportion of their business in Latin America.

View on Past Performance

It was another tough quarter in Latin America, which finally caught up with the rest of the world and is now showing some stock price weakness. The economies in Latin America are very correlated to commodities and therefore, as the oil price falls and the prices of industrial metals like steel fall, the underlying stocks also suffer.The story in Brazil and in some of its neighbouring countries is not just about commodities and industrial metals however. There are very positive consumer trends and a banking sector that has been unaffected by the maelstrom seen in Europe and the US.

Future Expectations

However, we are beginning to see the effects of investors deleveraging on a global scale and this is causing further weakness in those markets that are perceived to be higher risk and related to commodities.Regional currencies may also come under pressure as the US dollar continues to strengthen. The long-term picture remains a good one for Latin America although, like all geographies, it will be affected in the near term by the global slowdown.

Fund Details