Fund Objective

The aim of the Fund is to achieve capital growth.

View on Past Performance

The key positive for July was country allocation. The fund's position in copper company Aur Resources was the largest single positive factor as Teck Cominco acquired it at a 30% premium.In terms of portfolio activity, we added to Banco do Brasil due to its loan book exposure to agriculture and attractive valuation and reduced our position in the Brazilian airline GOL after a change in management guidance. New positions were established in Redecard (Mastercard transaction processing),MRV (low income real estate developer), and Multiplan (mall developer), all of which were new listings in Brazil. We reduced exposure to Mexican telecoms giant America Movil, where recent strong performance moved the stock above our maximum permitted weighting.

Future Expectations

The fund maintains a substantial overweight position in the consumer discretionary sector, which includes homebuilders, retailers and media. We continue to like the domestic consumption boom theme across the region, and are therefore also overweight financials, which are enjoying strong consumer loan growth.

Fund Details