Invesco Perpetual Latin American fund

Andy Parsons, Advice team manager at The Share Centre, explains how investors looking for capital growth by investing in emerging markets could benefit from the Invesco Perpetual Latin American fund.

"The Invesco Perpetual Latin American fund is the ideal way for investors to gain exposure to Latin America. The region remains an attractive proposition for adventurous investors, given its abundance of raw materials and the world's continuing dependence on them.

"Over the last decade, there has also been a growing internal consumer demand for raw materials as Latin economies become wealthier. Latin America appears to be moving out of recession. Brazil has recently cut its interest rates to an all time low of 8.75 per cent and its unemployment rate is falling. Historically, Brazil's financial system has had to overcome a variety of issues, but now the IMF describes it as robust.

"For many investors, the key reason for selecting a Latin American fund is to gain access to Brazil. Raw materials are an integral part of the region's development, with oil continuing to be a key attraction for many investors, given the recent colossal offshore oil finds by Petrobras.

"Invesco's fund aims to achieve capital growth in Latin America by investing primarily in shares of companies in South and Central America, including Mexico as well as the Caribbean, although it may include other Latin American related investments.

"The fund is managed by Dean Newman who has been running the fund for 15 years. In terms of fund performance, many investors would proudly hang a gold medal around its neck. Over the past five years the fund has returned 239.6% compared to the sector average of just 67.03%.

"Due to the nature of the geographical region and the development of its financial markets, we rate this fund as a high risk investment for those investors who want exposure to Latin America and surrounding regions as part of a well diversified portfolio."