$1.8bn independent wealth manager, CredoCapital, is looking to increase its exposure to Latam by adding a pure Latam fund to its emerging market portfolio, which could comprise between 2.5-5% of Credo’s total asset allocation, LatAm FM can reveal.
According to Rikky Shoker, portfolio manager at Credo (pictured), the UK firm is searching for a Latam-based fund manager with a strong track record and proven ability to generate alpha. “Someone with local knowledge and expertise is of paramount importance – a manager who understands the local market framework and risks, as well as having good relationships with local brokers to get decent access to the markets,” he added.
Credo’s current exposure to emerging markets is around 10% of its total portfolio, which is invested through a long/short emerging markets fund and macro fund. Both of these funds have a significant exposure to Latam. “We have deliberately selected funds that are overweight Latam as we like the region,” said Shoker.
He added: “We believe valuations in emerging markets look attractive, especially in markets such as Brazil and Mexico, where the long term growth fundamentals are intact.
