Aberdeen to manage Credit Suisse Brazil funds
Aberdeen Asset Management has been appointed investment adviser to the Credit Suisse Equity Fund (Lux) Brazil and Bond Fund (Lux) Brazil, which are to be merged into the Aberdeen Global SICAV.
The appointment takes effect 2 April 2012 for the portfolios, which have assets of $94m and $153m respectively.
They will appear renamed in the Aberdeen Global SICAV as Aberdeen Global Brazil Equity Fund and Aberdeen Global Brazil Bond Fund.
The equity strategy will be managed by Devan Kaloo, head of Global Emerging Markets, while the bond strategy will be managed by Brett Diment, head of Emerging Market Bonds.
Brazil’s fiscal and monetary policies over the past decade have put the country on the path to further credit rating upgrades from its current Baa2/BBB ratings, Aberdeen said.
Inflation is low by historical standards, and domestic consumption and investment rising. local companies are improving profitability and earnings. Corporate governance standards are improving among listed companies.
Brett Diment said: “From a fixed income perspective, Latin American economies and in particular Brazil have weathered the global financial crisis well and are not burdened by the huge debt levels and imbalances of their so-called developed world peers. Yet the yields available in the fixed income market remain at a premium to those offered by fundamentally weaker G-7 nation bonds.”
Added Devan Kaloo: “While Brazil has certainly blossomed due to being the world’s leading supplier of commodities, it would be wrong to view the region purely as a play on the world’s thirst for raw materials. Of more interest to Aberdeen is the rise of domestic consumption. Growing, youthful populations with burgeoning workforces are enhancing earning and spending power in the country, and this in turn is driving domestic growth.”
“By employing Aberdeen’s rigorous, bottom-up investment process, we aim to identify those companies in the region that meet our strict quality criteria, are attractively valued and offer the prospect for long-term share price growth.”