Fund to watch: Aberdeen Latin American Equity

Aberdeen Asset Management has built a solid reputation for managing emerging areas of the world and its Latin American Equity fund aims to deliver a combination of income and growth from investing in this region.

The fund, which was launched in early 2011, is run by the company's experienced Global Emerging Markets Equity team, led by Devan Kaloo, and sits in the Specialist sector, as classified by the Investment Association.

It has just fewer than 40 holdings, with the 10 largest accounting for around half of assets under management. These include Banco Bradesco, one of the biggest banking and financial services in Brazil, which has an 8.6% position. Other prominent names include Vale, a Brazilian mining company, and Lojas Renner, the second largest department store in Brazil.

As far as country exposures are concerned, Brazil has the lion's share with 61.4%, followed by 22.4% in Mexico and 8.9% in Chile. The others, each of which are worth less than 5%, include Colombia, Argentina, and Peru.

Within sectors, financials accounts for 32% of assets under management, with 28.1% in consumer staples, 12.9% in industrials, and 11.3% within consumer discretionary. The other sectors featured include materials, energy, and healthcare.

Mark Dampier, head of research at Hargreaves Lansdown, has the fund in his coveted Wealth 150 list of favoured portfolios. "Aberdeen has long been regarded for its emerging market expertise, and we believe the fund represents an excellent choice for adventurous investors seeking specific exposure to this region," he says. "The fund is run by a very experienced team, whom we have admired for many years."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.