Schroders has launched Schroder ISF Brazilian Equity which offers investors access to the dynamic growth potential of companies in the Brazilian equity market.
Managed by Carlos Scretas, head of equities Brazil based in Sao Paolo, the fund is a concentrated portfolio of 20-40 companies benchmarked against the MSCI Brazil 10/40 Index.
The fund manager will combine top-down market analysis with bottom-up stockpicking to focus on quality value and growth stocks with attractive valuations and solid earnings trends that will benefit from domestic growth stories, according to the company.
Carlos Scretas, manager of Schroder ISF Brazilian Equity, said: "Brazil's equity market is dynamic and diversified and offers investors access to compelling long-term growth opportunities.
“As the country has developed over the last few years, companies exposed to domestic demand from Brazil's growing middle class offer good opportunities in sectors such as real estate, discretionary products and financial services. In addition the country remains one of the world's largest producers of commodities from aluminium to coffee to soybeans."
Richard Mountford, global head of intermediary business, said: "Many investors are increasingly looking at Brazilian equities as an asset class in their own right, rather than merely viewing them as part of a broader investment in emerging markets.
“In light of this shift in attitude, the launch of the Brazilian Equity fund provides investors with access to a dynamic, fast-growing economy with very strong consumer demand, while reducing risk through diversification."
Schroders has been managing and selecting Brazilian stocks for over 17 years. The team of 16 local Brazilian investment professionals manage over $1.8bn in Brazilian equity portfolios.
