LONDON (Alliance News) - A trio of London-listed investment trusts with exposure to Brazil saw increases in share price and net asset value in March, according to analysis by research firm QuotedData, with investors showing "greater appetite for risk" last month.
With Brazilian President Dilma Rousseff facing calls for impeachment, investors have hopes for a new regime capable of addressing the country's economic and political problems. Rousseff has denied allegations of manipulating public accounts to hide a deficit before her re-election in 2014.
Brazil's economy shrank by 3.8% in 2015, its worst contraction in gross domestic product since 1990, and the Brazilian real lost 33% of its value against the dollar that year.
Shares in JPMorgan Brazil Investment Trust PLC, which aims to generate total returns by investing in Brazil-focused companies, increased by 18.6% in March, QuotedData said, as the fund's net asset value - the difference between assets and liabilities - grew by 18.8%, the best-performing trust on both counts.
BlackRock Latin American Investment Trust PLC, which had 43% of its equity portfolio exposed to Brazil at the end of February, according to its monthly factsheet, saw its share price rise by 14% in March, QuotedData said, as its NAV rose by 13.6%.
Aberdeen Latin American Income Fund Ltd, which had 45% of its assets exposed to Brazil at the end of February, according to its monthly geographic breakdown, saw its net asset value rise by 12.9% in March, QuotedData said.
"Investors seemed to have a greater appetite for risk in March. JPMorgan Brazil and the two Latin American funds have been helped by a bounce in the Brazilian market. Brazil?s president is widely disliked by investors and signs that she might be impeached have been taken well," QuotedData said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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