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Buy growth at a discount with BlackRock Latin American

BlackRock Latin American and its holdings look relatively cheap
Buy growth at a discount with BlackRock Latin American

A global emerging markets fund is a good option for growth investors with a long-term investment horizon. But if your portfolio has grown and is worth hundreds of thousands of pounds you could also consider adding small allocations to a specialist fund, alongside such core holdings.

IC TIP: Buy at 452p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Wide discount to NAV

Latin American equities look cheap

Good Latin American prospects

New managers with strong record

Bear points

Concentrated emerging markets risk

Volatility

Specialist areas that seem to have potential include Latin American equities, which were volatile in 2018. But “the prospects for Latin America look brighter for 2019, as the key Brazilian economy looks more robust with data points indicating a broad-based recovery, and the political environment in the region is more benign [for investors],” comment analysts at Edison. “Valuations in Latin America are also supportive: equities are trading on a forward price/earnings of 12 times – a 16.7 per cent discount to the world market – which is much wider than the 3.6 per cent average discount over the last 10 years.”

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