In October, value countries have continued to underperform the market and have been a significant drag on country selection. The model remains split on Latin America overall: Brazil and Mexico are both in the top 5, while Peru and Chile are both in the bottom 5.
In Mexico, legislation to implement energy reforms was recently approved. With this, the country has officially pressed the “go” button on activity that will create long-term, growth-enhancing capabilities.
Focusing purely on country selection within global equity allocation has brought investors long-term results since 1991. We explain why we believe country selection opportunities will only continue to increase and become easier.