Marketing communication · Professional investors and eligible counterparties only
Latin American equities · All cap · UCITS · Art. 8
LarrainVial Latin American Equity Fund
LarrainVial Asset Management · Santiago
The fund aims to maximise medium-term capital appreciation by investing in Latin American equity securities diversified both by geography and economic sector. It invests in stocks of Latin American all-cap companies.
UCITSSFDR Art. 8AllfundsInversis
The fund invests in emerging countries; investment in these financial assets is generally subject to greater risks than investment in the markets of consolidated countries.
Why we represent this fund
01Not a star-PM fund, but a team-led process. Two portfolio managers co-lead, with portfolio construction led jointly to ensure diversification of views. They are supported by a senior LatAm team with deep local knowledge across Brazil, Mexico, Chile, Colombia, Peru and Argentina and direct relationships with C-suite executives, regulators and industry experts.
02Data-driven and style-agnostic. The manager follows the evidence, not a label: the process integrates value, growth and quality signals depending on the opportunity set, with the target of generating alpha independently of style exposure at any given time.
03Top-down guardrails, bottom-up conviction. Top-down identifies sector tailwinds and capital-cycle dynamics; bottom-up is the core and searches for value gaps. The final portfolio of 40-60 names holds the highest-conviction positions.
04Deep, independent research is non-negotiable. Research is multi-source: site visits, supplier and customer interviews, private peer analysis, pre-IPO meetings and industry expert consultations. As a locally based manager, the team is positioned to capitalise on the information asymmetries across Latin American markets.
05Robustness to eliminate the left tail. Every thesis is stress-tested through white papers, quantitative tools and plural perspectives; disagreement is institutionalised to avoid blind spots. Risk management is treated as a source of alpha, modelled for real-world liquidity conditions rather than theoretical normal distributions.
Principal risks
01High volatility and risk of loss. The share price has a high volatility, therefore the risk of loss as well as the expected reward can be high. Repayment of the initial investment is not guaranteed.
02Emerging-market political and regulatory risk. Investment in emerging markets exposes the fund to risks related to political, regulatory, financial or fiscal instabilities or uncertainties that may negatively affect the value of the investments or even question the ownership title of the fund.
03Currency risk. The value of investments may decrease due, in part, to exchange-rate fluctuations in investments that have an exposure to currencies other than the base currency of the fund.
04Country concentration risk. The concentration of the fund on a given country implies the risk that events concerning that country may significantly and negatively affect the value of the whole portfolio.
05Liquidity and settlement risk. Settlement and delivery systems in emerging markets may be less well organised, leading to risk of late or cancelled settlement or counterparty default. Certain markets may be of small size, so the fund’s investments may be more difficult to buy or sell at an adequate price.
Marketing communication. This is not investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument. Addressed exclusively to professional investors and eligible counterparties as defined in Directive 2014/65/EU (MiFID II); it is not intended for retail clients. Capital is at risk: the value of investments may fall as well as rise, is not guaranteed, and you may get back less than you invested. Past performance is not a reliable indicator of future results. Any forward-looking statements reflect the manager’s opinion at the date of publication, are not guaranteed and may change. Costs and charges reduce returns and are set out in the KID and the prospectus, which together with the summary of investor rights are available from the management company and from us on request; read them before investing. Sustainability-related information is set out in the fund’s SFDR pre-contractual disclosures; an SFDR article classification is a disclosure regime, not a quality rating or a label. Tax treatment depends on each investor’s individual circumstances and may change; this is not tax advice. The management company may decide to terminate marketing arrangements. South Hub Investments, S.L. is a tied agent of Ursus-3 Capital, A.V., S.A. (CNMV reg. no. 251), acting in its name and under its responsibility; no investment advice or discretionary portfolio management services are provided.
Marketing communication · Professional investors and eligible counterparties only
Fixed income · LatAm local-currency debt · UCITS · Art. 8
LarrainVial Gavekal Latam Local Currency Debt Fund
LarrainVial Asset Management · Gavekal Capital · Santiago
An actively managed fund that seeks to obtain an attractive return through investment in bonds and debt instruments issued by companies and governments in Latin America, denominated in local currencies or hedged to them. Managed by LarrainVial Asset Management with Gavekal Capital Limited as co-investment manager.
UCITSSFDR Art. 8AllfundsInversis
Eligible for Spanish tax-deferred fund transfers (traspaso).
Why we represent this fund
01High local rates as a source of carry. High local rates: a source of carry and alpha in a global portfolio. Real ex-ante rates provide inflation protection and Latin American rates provide a yield pick-up against developed economies.
02An active mandate across a wider universe. Degrees of freedom across the investable universe: beyond the benchmark’s local nominal sovereign bonds, the fund can use money markets, linkers, quasi-sovereign and corporate spreads, USD and EUR bonds and local derivatives. Local rates and FX represent 70-100% of the portfolio and credit 0-30%.
03Gavekal’s global macro insight. The CEO and founder of Gavekal is a key member of the investment committee, where he contributes his global views, which are translated into FX and rates beta exposures and incorporated by LarrainVial’s portfolio managers in the final composition of the fund. Positions and trades are communicated daily.
04Latin America covered from Latin America. In-depth local knowledge and capabilities based on offices in Santiago, Lima, Bogotá, Mexico City and New York; a macroeconomic team fully dedicated to covering Latin American economies in a global context, from the region, and a department dedicated to Latin American corporate credit assessment with analysts based in Argentina, Peru and Chile.
Principal risks
01Capital loss. Investment in the fund carries substantial risk. There can be no assurance that the investment objectives of the fund will be achieved, and the value of all investments and the income derived therefrom can decrease as well as increase.
02Foreign currency risk. FX is the main driver of volatility but provides carry. The value of investments may decrease due, in part, to exchange-rate fluctuations in investments with exposure to currencies other than the base currency of the fund; idiosyncratic developments, especially political developments, have an important role in determining local-currency asset prices.
03Interest-rate and credit risk. Interest-rate risk and credit risk are among the main risks associated with the fund. The fund may invest in securities of distressed companies.
04Derivatives and leverage risk. Derivatives risk is among the main risks associated with the fund; the value of derivative investments such as options and futures can be extremely volatile. The fund’s prospectus allows leverage ranging from 0% to 300%, depending on market conditions.
05Liquidity risk. Liquidity risk is among the main risks associated with the fund; the fund may invest in illiquid securities and non-publicly traded securities. In case of liquidity shortage or large redemptions, the fund can activate liquidity management tools (swing pricing and gating).
Marketing communication. This is not investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument. Addressed exclusively to professional investors and eligible counterparties as defined in Directive 2014/65/EU (MiFID II); it is not intended for retail clients. Capital is at risk: the value of investments may fall as well as rise, is not guaranteed, and you may get back less than you invested. Past performance is not a reliable indicator of future results. Any forward-looking statements reflect the manager’s opinion at the date of publication, are not guaranteed and may change. Costs and charges reduce returns and are set out in the KID and the prospectus, which together with the summary of investor rights are available from the management company and from us on request; read them before investing. Sustainability-related information is set out in the fund’s SFDR pre-contractual disclosures; an SFDR article classification is a disclosure regime, not a quality rating or a label. Tax treatment depends on each investor’s individual circumstances and may change; this is not tax advice. The management company may decide to terminate marketing arrangements. South Hub Investments, S.L. is a tied agent of Ursus-3 Capital, A.V., S.A. (CNMV reg. no. 251), acting in its name and under its responsibility; no investment advice or discretionary portfolio management services are provided.
