Latin America is no longer a largely rural region. After 60 years of chaotic but rapid urban development, four-fifths of its population now live in towns or cities, a prey to all the ills of modernity and globalisation. Despite the fact that exports from these countries depend mainly on farming and mining, more than two-thirds of their gross national product comes from cities, home to services and industry. Although Latin America has huge expanses of territory, nowhere else has achieved this level of urbanisation.
The cities are steadily expanding, sometimes outstripping the rise in population two or three-fold, due to urban sprawl. UN-Habitat’s experts oppose this trend and advocate taller buildings, to limit outward growth and boost population density. This, they believe, is the price to pay to manage urban areas efficiently and secure sustainable development, concentrating the infrastructure necessary for city dwellers.
The rapid urban growth in Latin America continues to coincide with the many reasons why you should be long on Latin America.
Here are some key points as to why Investors should invest with Excel Latin America Equity Fund:
- -Increased political and financial stability.
- -Rise in demand for commodities and food from China and India.
- -Improved purchasing power.
- -Previous debt problems virtually overcome.
- -Share prices are low, ie they are more likely to increase merely due to increased confidence in corporate finances and sovereign economies.
- -High degree of diversification and active management offer higher degree of growth over ETF’s.
- – Managed by Scott Piper of Itau-Unibanco which currently has US $142 Billion in AUM.
Written by Sam A.