LatAm allocation a 'must' for portfolios, UBS EM Americas CIO says

By Mehnaz Yasmin

(Reuters) - A spate of political reforms and economic cycles has elevated Argentinian dollar-denominated sovereign bonds and Latin American corporate bonds to rank among key "areas of interest," the chief investment officer of emerging markets Americas at UBS Global Wealth Management said.

"It is a mistake to overlook LatAm," Alejo Czerwonko told the Reuters Global Markets Forum on Monday.

"Strategically, an allocation to LatAm assets in portfolios is a must, not least as valuation across equities, some fixed-income segments, and a number of currencies, are quite depressed at the moment," Czerwonko said.

Emerging markets in Latin America have been rocked by major policy shifts this year, leading to spikes in volatility and sell-offs across various asset classes, which in turn have created attractive entry points.