Middlesea Valletta Life has added the MSV Fidelity Latin America Fund to its range of unit-linked funds.

The fund invests principally in securities of Latin American companies using fundamental bottom-up analysis, which includes visiting companies and analysing company financials. MSV said that to evaluate financial performance, the managers focus on companies with strong cash generation abilities and firms whose earning capabilities appear to be unrecognised by investors.

The fund managers take advantage of the research capabilities of Fidelity's emerging markets team, which combines both equity and fixed income research. The Latin America equity analysts support the managers with fundamental stock research, while other members of the team provide quantitative analysis and research support on macroeconomic factors, government policies and commodity and currency prices.

The fund was launched by Fidelity in May 1994.

Equity financial markets globally have continued the recovery which began in March last year. Some analysts prefer emerging markets such as Brazil, where the domestic recovery is looking in better shape. Brazil is considered to be one of the most politically stable markets, has one of the biggest economies and has the broadest stock market in the region.

Higher prices for commodities from coffee to soybeans and iron ore to crude oil, have brought new-found wealth to Brazil.

Latin America funds tend to be Brazil funds because Brazilian stocks typically account for 60 to 70 per cent of the fund assets with a large proportion of the remaining assets being in Mexico.

This limited diversification calls for prudence when investors are considering what proportion of their portfolio to commit to such funds.

For more information contact Middlesea Valletta Life on Freephone 8007 2220, an intermediary or any Bank of Valletta branch.