Invesco Perp Latin American continues move towards Brazil

Dean Newman has added Brazilian energy company HRT Participacoes to the portfolio of the £407.8m Invesco Perpetual Latin American fund.

The move fits in with Newman’s ongoing strategy of allocating more of the portfolio to Brazil and away from Mexico.

“We are finding more growth opportunities in Brazil and as a consequence we have been increasing our exposure to the country,” the fund’s latest factsheet explains.

Six months ago, 68.63% of the fund was held in Brazil, rising to 71.25% by the end of October. Over the same period, the allocation to Mexico has fallen from 18.81% to 14.59%.

Newman says Brazil was the best performing market in Latin America over the course of October, against a backdrop of a general re-bound in the region’s stock prices. Energy, financials and consumer discretionary led this rally.

HRT Participacoes focuses on oil and natural gas production in South America and Africa. Last week it published its third quarter results, which claimed it had an “extraordinary” first year after its listing on the stock exchange.

The firm made a loss of R$101.3m (£36.2m) over the quarter, driven by the expense of its exploration programme. The company later announced that it has discovered oil and gas in the Solimões sedimentary basin in the early stretches of the Amazon.

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