The Advance Copernico Argentina Equity Fund, benchmarked against the local Merval Index, will focus on value opportunities that specialist LatAm fund manager Copernico sees in an economy which has seen strong growth but little external interest over the past decade.
Copernico points to Argentina’s substantial middle class, citing GDP per capita of around $9,000, in emphasising the value in Latin America’s second largest economy.
“We believe the current situation in Argentina provides an opportunity for investors to earn outsized returns through a focused investment program,” said Copernico CEO Ricardo Maxit.
“Companies are trading at a significant valuation discount to regional peers; the Argentinean Peso is amongst the most undervalued currencies in the world. Also, there is strong and continued demand for Argentina’s agricultural exports and an election will be held in October 2011, at which a change of leadership is a real possibility.”
