Brookvine has announced its partnership with Chile-based asset manager specialising in Latin America, Moneda Asset Management, under which it will bring a high yield investment opportunity to Australian investors.
The Moneda Latin American Corporate Debt Fund is a high yield bond fund in US dollar-denominated corporate credit of companies across Latin America. The strategy has a 19-year track record and returned 12.5 per cent per annum since its inception in February, 2000.
According to Brookvine’s chief executive, Steven Hall, Latin America was a region that represented a thriving cluster of economies where most countries were still in expansion phase while total middle-class income across the region was higher than in China.
“For investors seeking to enhance returns, the Moneda Latin American Corporate Debt Fund has delivered significantly higher returns than emerging market equities with lower volatility over the period since the strategy’s inception,” he said.
“At a time when high yielding assets are hard to find, LatAm high yield is a unique way to unlock from an overlooked asset class.”
Moneda’s senior partner and head of fixed income LatAm investments, Fernando Tisné, added that the LatAm universe offered higher yields, had lower leverage and higher corporate cash levels than the US, with default rates in line with developed markets.
The fund would be distributed to institutional investors in Australia and New Zealand through Brookvine.