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THE BOOKLET
SANTANDER AM
LATIN AMERICAN
CORPORATE
BOND FUND
Q1 2015
31 MARCH 2015
Reporting period first quarter 2015
Distribution to institutional investors only
CONTENTS
01 02 03
Executive Summary
Pages 04-05
Market Review
Pages 06-07
Portfolio Performance Review
Pages 08-09
04 05 06
Portfolio Composition
Pages 10-11
Market Outlook
Pages 12-13
Appendix
Pages 14-18
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
01
EXECUTIVE
SUMMARY
FUND MANAGER COMMENT
The first quarter of 2015 showed a peak on market scepticism and the early points of a
turnaround. Two important drivers of the turnaround were the mild recovery of the oil price
and the softer data in the US. The former managed to put a floor on investors’ minds and
the latter lowered the cap on US rates going forward. Removing these two headwinds,
value emerged on the asset class and delivered positive results on the quarter. Looking
forward, the new Petrobras status and lower volatility of some commodities (like copper or
silver) may provide further support for returns.
PERFORMANCE (%)
Q1 2015
1YR
Portfolio
Index
Relative Return
0.27
2.90
1.26
3.53
-0.98
-0.62
Source:Santander Asset Management March 2015, Past performance is not reliable indicator of future performance
4
SANTANDER ASSET MANAGEMENT
MARCH 2015
KEY FACTS
Fund Name: Santander Latin America
Corporate Bond Fund
Inception Date: 27 October 1998
Benchmark: CEMBI Broad Diversified LatAm Index
Total Net Assets: $104.2m (31 March 2015)
Fund Currency: USD
Fund Manager: Alfredo Mordezki
ISIN: LU0363170191 (Class I)
Bloomberg Ticker: SANHYDI Equity
Minimum Investment: 500,000
Management Fee: 0.60%
TER: 0.82% (31 Dec 2014)
Share Classes: A, AD, I
LIPPER LEADER SCORECARD
Total
return
Methodology
Consistent
return
Preservation
Expense
Overall
rating
3 year
rating
5 year
rating
CLAVE DE LIPPER LEADERS
MÁS ALTO
MÁS BAJO
Source: FT.com, as at the end of December 2014.
Lipper Leaders fund ratings do not constitute and are not intended to constitute investment
advice or an offer to sell or the solicitation of an offer to buy any security of any entity in
any jurisdiction. As a result, you should not make an investment decision on the basis of
this information. Rather, you should use the Lipper ratings for informational purposes only.
Certain information provided by Lipper may relate to securities that may not be offered
sold or delivered within the United States (or any State thereof) or to, or for the account or
benefit of, United States persons.
Lipper is not responsible for the accuracy, reliability or completeness of the information that
you obtain from Lipper. In addition, Lipper will not be liable for any loss or damage resulting
from information obtained from Lipper or any of its affiliates.
© Thomson Reuters 2011. All rights reserved.
5
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
02
MARKET REVIEW
The Latin American corporate bond market posted absolute positive returns for the first
quarter (1.3% as measured by the CEMBI LatAm Index) despite starting the year in a
turbulent fashion. Volatility was noticeable as investor flight to quality pushed the US 10
year Treasury to an 18 month low of 1.64%. It continued to fluctuate widely throughout
the quarter with yields reaching as high as 2.24% before settling at 1.92%, influenced by
the Federal Reserve setting the environment for the first interest rate hike since 2006.
From a technical perspective, trends were supportive, with $13bn of corporate amortisations
and coupons in the first month of the year. Latin American new issues for the quarter totalled
$12.5bn, marginally better than the previous quarter but significantly down on the same
period last year when $28bn was issued. Unsurprisingly, all new paper was issued outside of
Brazil where market conditions have been deemed more appropriate for such transactions
at this time. Mexico’s Pemex made up almost half the total, placing $6bn in three tranches
of 5, 10 and 30 years. Chile’s Cencosud ($1bn) was another investment grade issuer in the
period while high yield issuers included Cemex ($750m) and Millicom ($500m).
Rating downgrades in the region continue to be prevalent given current market conditions
although this has not stopped the upgrade of those that have demonstrated fundamentals
beyond their existing ratings. Standard & Poor’s raised the rating of Mexican flour and
tortilla producer Gruma to BBB-, citing the company’s efforts to reduce its debt burden,
while increasing its profitability. In addition, CFR, Credito Real and Cementos de Chihuahua
all received upgrades, supported by the more prosperous outlook on their relevant sectors.
Pacific Rubiales, Vale, Usiminas, Hochschild and Volcan were among those downgraded
largely due to the continued pressures of lower commodity prices. Oil prices declined
by 10.6% while iron ore continued its downward trajectory falling by 28%. In contrast,
copper price stabilised helping miners in both Chile and Peru while hardwood pulp prices
have continued to ease higher. Sugar, an important commodity for Brazil, also fell sharply
due to the imbalance in the market. It should be noted that the price of sugar remains
below many Brazilian producers production cost.
Lower sugar prices were responsible for one the region’s defaults this year when Virgolino
de Oliveira was finally unable to pay its bond holders following months of operating
below breakeven levels. The other main default in quarter came as result of the Lava Jato
corruption investigation when OAS missed coupon payments in January. Although there
are bound to be other companies faced with this scenario as a result of the investigation,
as time progresses it is becoming easier to identify those that are edging towards
this scenario.
6
SANTANDER ASSET MANAGEMENT
The Lava Jato corruption case remained a
key news story in Brazil in the first quarter.
This weighed on investor sentiment
sending Petrobras’s credit default swaps to
their widest level ever, with five-year CDS
on Petrobras widening 24%, to trade at
nearly 700bp. However, by March there
was positive news as S&P affirmed the BBBlong-term foreign currency sovereign rating
and most importantly, kept a stable outlook
for Brazil. The rating action was important
for removing at least momentarily, an
important concern market agents had on
the possibility of Brazil losing its investment
grade status in the short-term.
Finally, on the currency side, the quarter
saw significant weakness on all major
crosses, with special focus on Brazilian Real.
High correlation between the Mexican,
Chilean and Colombian Peso showed some
change on investor positioning beyond
fundamentals, including a late appreciation
of the three currencies. The Peruvian Sol
remained stable on the weak side, range
bounded on central bank interventions.
MARCH 2015
Market Performance: LatAm Indices YTM
Country Performance: Sovereign USD
Issued Debt
LatAm Indices YTM (normalised 30 Apr 2013)
%
30
145
140
135
20
130
10
125
0
120
115
-10
110
-20
105
100
-30
%
0
Argentina
12%
Columbia
4%
Pe
ru
Pa
na
m
a
Ur
ug
ua
y
Ve
ne
zu
el
a
Country Performance: Sovereign Local
Currency Debt
2015
Brazil
32%
12M Return
Source: JP Morgan, as at the end of March 2015.
2014
Chile
15%
Br
az
il
3M Return
New Issues: Latin America
Argentina
2%
Ch
ile
Co
lo
m
bi
a
M
ex
ico
31
EMBI Glob Div (sov. & quasi sov. debt issued in USD
GBI-EM Glob (local ccy debt converted to USD, unhedged)
CEMBI Div Br (corp. debt issued in USD)
-40
Ar
ge
nt
in
a
14
M
AR
14
30
AP
R
14
31
M
AY
13
30
JU
N
13
31
JU
L
13
31
AU
G
13
30
SE
P
13
31
O
CT
13
30
NO
V
14
31
DE
C
14
28
FE
B
15
14
28
FE
B
13
31
JA
N
13
31
DE
C
13
NO
V
30
31
O
CT
13
13
SE
P
30
13
31
AU
G
13
JU
L
31
13
JU
N
30
31
M
AY
AP
R
13
95
30
USD Debt
Other
29%
Local Ccy Debt (in USD)
-5
-10
Chile
12%
-15
Columbia
6%
Mexico
27%
Other
7%
Peru
6%
-20
-25
Peru
15%
Brazil
3M Return
Mexico
35%
Chile
Colombia
Mexico
Peru
12M Return
Source: JPMorgan, as at the end of March 2015.
Source: Credit Suisse, as at the end of February 2015
Market Performance: Indices
Market Performance: Currency
%
10
0%
5
-5%
-10%
0
-15%
-5
-20%
-10
-25%
-15
-20
-30%
GBI-EM Global EMBI Global Div ELMI+LatAm
US Gov
Div LatAm
LatAm (sov. &
(local ccy
Bond Index
(sovereign local quasi sov. debt money market (Bloomberg/
ccy debt in
issued in USD) instruments)
EFFAS Bond
USD)
Indices US Govt
All > 1 Yr TR)
3M Return
-35%
Argentina
Brazil
3M Return
Chile
Colombia
Mexico
Peru
12M Return
12M Return
Source: Bloomberg March 2015
7
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
03
PORTFOLIO
PERFORMANCE
REVIEW
PERFORMANCE AND PORTFOLIO POSITIONING COMMENT
The portfolio posted a positive absolute return in the first quarter of 2015 and, although
it lagged the benchmark return, the second half of the quarter saw the relative
underperformance reduce considerably. Much of the underperformance can be attributed
to the fund’s underweight duration following the rally in the US treasury to an 18 month
low of 1.64% in January.
Good performance amongst credit stories held in the banking sector aided returns with a
number of the fund’s positions showing appreciating bond prices. The portfolio’s investment
in selected names, particularly in the diversified financial sector, boosted performance and
justified our heavy weighting in this area. The fund’s largest contribution for the quarter
came from Banco Davivienda while other banks such as Bancolombia and Banco de Credito
Del Peru also provided some of the strongest returns.
Unsurprisingly, the Oil and Gas sector underperformed in the period following a further
fall in oil price. Our bond from Pacific Rubiales, the Colombian oil company, was our worst
performer losing value amidst further pressures arising from an oil price which dropped
more than 18% through to the middle of March. Concerns over future production as a
result of reduced capex have since been eased slightly following a soft recovery of the
commodity and bond price has improved since. The Engineering & Construction sector also
suffered through the ensuing Lava Jato investigation and our positions in OAS bonds, which
we reduced significantly prior to their default, and Odebrecht Drilling bonds illustrated this.
At a country level, performance both positive and negative was driven by the fund’s two
dominant positions in Mexico and in Brazil respectively. Strong performance amongst
corporate paper held in Peru and Chile also lifted returns.
In Mexico, the largest contributor to returns was Unifin Financiera, a financial services
company that offers leasing and other financial consultancy services. The fund also
benefitted from its investment in Elementia, the Mexican building materials company,
owned by Carlos Slim and Mexichem, as news surfaced of the company’s imminent IPO.
Another notable performer during the month was Southern Copper, the Mexican mining
company. The fund’s exposure to the long-end 2035 issue proved fruitful, as investor
sentiment was given a lift by improved prospects for the copper price.
8
SANTANDER ASSET MANAGEMENT
Our Brazilian bonds in the Engineering &
Construction sector, mentioned previously,
explained much of the negative performance
in the country while auto parts manufacturer
Tupy also posted negative returns due to
the challenging environment in Brazil’s
auto industry. However, companies such as
Klabin, Cielo and Cosan provided some of
the fund’s best returns showing there is still
a lot of value to be extracted from Brazil.
MARCH 2015
Rolling Performance of the Fund
Peer Group Ranking Chart
12.0
8.0%
10.0
6.0%
8.0
6.0
4.0%
4.0
2.0
2.0%
0.0
0%
-2.0
-4.0
-2.0%
Q1*
Q2*
Q3*
Q4*
15
FE
B15
M
AR
-1
5
14
E-
C-
DI
SAN LCAB*
EN
-1
4
V14
NO
14
P-
CT
SE
O
14
-1
4
O
L-
MAR
JU
FEB
AG
Benchmark (cumulative)
JAN
AR
-1
4
AB
R14
M
AY
-1
4
JU
N14
Benchmark (MTD)
Portfolio (cumulative)
DEC
M
Portfolio (MTD)
NOV
14
OCT
FE
SEP
13
AUG
E-
JUL
C-
JUN
EN
MAY
DE
APR
B14
-6.0
-4.0%
*Contains estimated data
Source: Santander Asset Management, Lipper Analytics, as at the end of
March 2015.
Country Contribution
Rating Contribution
1.0%
0.8%
0.6%
0.5%
0.4%
0%
0.2%
-0.5%
-0.2%
0.0%
-0.4%
-1.0%
-0.6%
Index
Fund
Index
C
C
CC
C+
-0.8%
BR
B-
CO
B
SV
B+
JM
-
NL
BB
LU
BB
AR
+
GT
BB
PY
B-
BB
BB
CR
B
ES
CC
Fund
PA
BB
CL
B+
PE
BB
MX
A-
-1.5%
Sector Contribution
0.7%
0.5%
0.3%
0.1%
-0.1%
-0.3%
-0.5%
-0.7%
D
NK
SE
BA
FIN
RS
VE
DI
E
IFI
S
RV
AN
G
N
DI
IL
BU
HO
M
NG
I
LD
S
AL
RI
E
AT
S
RE
IE
N
PA
CO
LE
TE
NS
IA
ED
O
TI
CA
M
I
UN
AL
CI
M
M
M
CO
L
I
TA
ER
IV
D
S-
S
CE
VI
S
IT
RE
TR
NS
RY
NE
A
I
CH
M
LD
US
O
EH
ES
G
IN
IN
&M
CO
M
M
CO
ER
R
SE
AR
W
S/
CT
DU
P
RO
HO
M
ST
VE
IN
M
T
EN
CO
ST
RE
FO
S
IE
N
PA
ER
P
PA
S&
CT
DU
C
RI
CT
E
EL
AS
G
O
IR
RO
P
L
EE
ST
N/
S
T
S
E
N
AS
IO
AL
EN
CE
UR
IC
VI
&G
LT
CT
L
PM
R
I
U
I
M
U
E
C
U
O
SE
TR
RI
EQ
CH
AS
NS
AG
G
S&
O
T
&
C
L
R
I
&
O
G
PA
IN
TO
ER
U
E
A
IN
G
EN
Source: Santander Asset Management, as at the end of March 2015. Data provided by the Investment Portfolio Manager.
D
O
FO
G
IN
IN
M
Fund
Index
MONTHLY PERFORMANCE 2015
JAN
FEB
MAR
Fund
-1.13 +1.11 +0.31
Index
-0.32 +1.96 -0.35
-0.81 -0.86 +0.66
Excess
CALENDAR YEAR PERFORMANCE
2010
2011
2012
2013
2014
Fund
+10.66
+3.40
+14.15
-2.47
+6.33
Index
+11.52
+4.95
+14.13
-2.66
+5.95
-0.86
-1.55
+0.02
+0.19
+0.38
Excess
Source:Santander Asset Management March 2015, Past performance is not reliable indicator of future performance
9
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
04
PORTFOLIO
COMPOSITION
PORTFOLIO CHARACTERISTICS
Tracking error:
PORTFOLIO ALLOCATION
2.22%
% Invested:
Sharpe Ratio:
1.17
% Cash:
Beta:
0.71
Nº of Issues:
Volatility:
3.14%
YTM:
6.43%
Duration:
4.97
Average Rating:
BB+
Average G Spread:
502
96.3%
3.7%
87
Source:Santander Asset Management March 2015, T/E, Sharpe Ratio, Beta, volatility, I.R. 3 years annualized data
Top 10 Holdings
Weight
YTM
Rating
G-Spread
Duration
FINANCIERA INDEPENDENCIA
7.5 03/06/2019
2.44%
7.50%
B+
637
3.42
UNIFIN FINANCIERA 6.25
22/07/2019
2.16%
8.21%
BB-
701
3.61
ATENTO LUXCO 7.375
29/01/2020
2.07%
7.47%
BB-
621
3.93
CREDITO REAL 7.5 13/03/2019
2.05%
6.66%
BB+
556
3.35
ITAU UNIBANCO 5.5
06/08/2022
1.98%
5.50%
BBB-
377
5.90
TENEDORA NEMAK 5.5
28/02/2023
1.91%
4.89%
BB
367
3.46
ELEMENTIA 5.5 15/01/2025
1.86%
5.53%
BB+
367
7.32
SOUTHERN COPPER 7.5
27/07/2035
1.79%
6.20%
BBB
393
10.89
SIXSIGMA NETWORKS MEXICO
8.25 07/11/2021
1.77%
7.18%
B+
564
4.31
1.74%
19.77%
5.43%
B+
845
1.55
C10 CAPITAL 6.722 PERP
TOTAL
Source: Santander Asset Management, as at the end of March 2015. Data provided by the Investment Portfolio Manager.
10
SANTANDER ASSET MANAGEMENT
MARCH 2015
Sector Positioning/Active Exposure
Fund
16.75%
BANKS
DIVERSIFIED FINAN SERV
FOOD
OIL&GAS
HOLDING COMPANIES-DIVERS
1.2%
COMMERCIAL SERVICES
3.58%
HOLDING COMPANIES-DIVERS
2.34%
-2.12%
2.87%
MEDIA
1.99%
1.9%
1.97%
0.0%%
AGRICULTURE
HOME BUILDERS
1.69%
0.1%
HOME BUILDERS
1.66%
1.5%
ENGINEERING&CONSTRUCTION
-1.54%
GAS
1.52%
2.7%
IRON/STEEL
00%
0.00%
COMMERCIAL SERVICES
AGRICULTURE
ENGINEERING&CONSTRUCTION
-2.03%
MINING
5.3%
2.54%
4.1%
GAS
-11.55%
ELECTRIC
FOREST PRODUCTS&PAPER
2.98%
0.1%
MEDIA
2.97%
TELECOMMUNICATIONS
16.1%
3.68%
3.7%
3.19%
MINING
2.02%
RETAIL
3.77%
5.8%
ELECTRIC
FOREST PRODUCTS&PAPER
-8.79%
BUILDING MATERIALS
4.58%
TELECOMMUNICATIONS
1.08%
OIL&GAS
14.7%
4.81%
1.8%
7.46%
FOOD
5.69%
3.7%
-3.82%
DIVERSIFIED FINAN SERV
6.68%
5.6%
5.90%
RETAIL
BANKS
20.6%
9.64%
2.2%
BUILDING MATERIALS
Index
0.06%
1.97%
1.58%
0.19%
IRON/STEEL
-1.23%
HOUSEHOLD PRODUCTS/WARES
1.43%
0.9%
1.39%
0.2%
HOUSEHOLD PRODUCTS/WARES
REITS
1.24%
0.4%
REITS
MACHINERY-CONSTR&MINING
1.21%
0.2%
MACHINERY-CONSTR&MINING
CHEMICALS
1.17%
1.8%
CHEMICALS
-0.62%
1.11%
1.4%
INVESTMENT COMPANIES
-0.24%
PIPELINES
INVESTMENT COMPANIES
PHARMACEUTICALS
PIPELINES
1.03%
0.0%
0.93%
2.8%
BEVERAGES
0%
0.53%
1.22%
0.89%
0.96%
PHARMACEUTICALS
0.98%
BEVERAGES
5%
10%
15%
20%
25%
-1.82%
-15%
-10%
-5%
0%
5%
10%
Source:Santander Asset Management March 2015
Country Positioning/Active Exposure
MX
18.93%
BR
16.72%
Index
MX
21.6%
CL
16.63%
2.8%
2.82%
GT
3.0%
0.76%
ES
2.1%
0.00%
ES
CR
1.8%
0.00%
CR
BB
1.5%
1.61%
BB
AR
0.00%
0%
A
A-
5%
10%
15%
20%
25%
30%
35%
-10%
-5%
0%
5.9%
BB+
BB
10.3%
3.91%
B+
5.5%
7.9%
4.0%
BB10.84%
6.4%
1.77%
.4%
0.00%
-5.5%
BB
7.81%
4.8%
B
-1.0%
-11.08%
BB+
18.13%
6.0%
B+
8.86%
2.4%
B
1.4%
B-3.9%
CCC+
3.9%
-2.7%
CCC
2.7%
5%
10%
15%
20%
25%
20%
-0.4%
BBB-
20.9%
17.60%
12.1%
BB-
BBB
22.1%
15.41%
15%
-5.9%
BBB+
11.27%
10%
-0.5%
A-
4.33%
5.3%
5%
Index
A
0.00%
0%
-3.9%
A+
0.3.6%
0.8%
0.00%
-6.2%
-15%
40%
Fund
0.00%
0.5%
BBB-
CCC
-0.1%
-1.7%
AR
BBB
CCC+
2.1%
1.8%
US
3.93%
BBB+
B-
2.3%
1.6%
JM
6.19%
Ratings Distribution/Active Exposure
A+
0.00%
PA
1.8%
3.46%
0.00%
-10.9%
PY
PA
US
-6.4%
GT
2.1%
0.5%
JM
-0.8%
CO
14.95%
5.7%
CL
4.9%
PE
8.6%
CO
15.4%
BR
10.1%
10.88%
PE
PY
Fund
34.3%
-15%
-10%
-5%
0%
5%
10%
Source:Santander Asset Management March 2015
11
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
05
MARKET
OUTLOOK
We expect a normalization of market conditions towards the middle of the year. New issue
volumes are down dramatically as a consequence of the disappearance of Brazilian issuers.
Local markets and syndicate loans are cautiously grabbing back market share of corporate debt,
a countertrend compared to the last decade. Investors hold cash as a result of low issuance and a
high level of coupons and maturities. EM Flows are stable to positive, but will not be determinant
in market performance unless macroeconomic imbalances are reversed, something we do not
expect to happen in 2015.
The Brazilian Premium, around 100bp in 5y CDS vs Peru, Panama, or Colombia will start to
shrink in the second half, if the country manages to define a clear limit on the financial
burden that Lava Jato will impact on involved corporates, and Petrobras normalizes operations
at a lower – but acceptable – level of production, EBITDA and Capex to sustain a credible path
to deleverage.
The Relative Value In LatAm Corporates
BBB BUCKET
LUCI
BB BUCKET
LACI
8.16
6.00
7.65
4.98
4.72
3.41
4.29
4.80
5.06
4.07
4.89
3.14
3.94
3.68
6.97
8.88
9.91
YTM
March 31st 2015 (%)
8.13
YTM
May 20th 2013 (%)
B BUCKET
BBB BUCKET
BB BUCKET
B BUCKET
EMCI
Source: LUCI, Liquid US Corporate Index, LACI, Latin America Corporate Index, EMCI, Emerging Market Corporate
Index, Bloomberg March 2015
12
SANTANDER ASSET MANAGEMENT
MARCH 2015
13
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
06
APPENDIX
WHY CHOOSE SANTANDER FOR FIXED INCOME?
How we are different: a large local presence, “a long distance relationship that really works”.
We are organised according to sectors across Latin America. This is crucial to our process, and allows us to make
an assessment and judgment on how we compare one company bond to another in the same industry, to ensure
we pick the best bonds for our portfolios.
SANTANDER LATIN AMERICA FIXED INCOME TEAM
Alfredo Mordezki
Global Head of LatAm
Fixed Income, London
Global
Tiago Ventura Rego
John Montgomery
Teresa Martinez
Dipak Chouhan
Local Curency Debt
London
Credit Analyst / PM
London
Quant Analyst
Madrid
Product Specialist
London
Marcelo Peixoto
Maria Aramoni
Javier Vieiro
Credit Analyst / PM
Brazil
Credit Analyst / PM
Mexico
Credit Analyst / PM
Chile
Brazil:
4 Equity Analysts
4 Macro Strategists
1 Equity Country Coordinator
Mexico
1 Equity Analyst
1 Macro Strategist
1 Equity Country Coordinator
Local
Local
Managers
Local
Analysts
Team AUM $566.3m, as at end March 2015
14
SANTANDER ASSET MANAGEMENT
Chile:
5 Equity Analysts
Argentina:
1 Equity Analyst
1 Equity Country Coordinator
MARCH 2015
OUR INVESTMENT PROCESS: THE FOUR CORNERSTONES
2. BOND’S
EXPECTED RETURN
3. PORTFOLIO
CONSTRUCTION
4. PERFORMANCE
ANALYSIS
Expected Return
1. COMPANY’S RISK
INDICATOR
MONITORING AND CONTROLS
A combination of objective and proprietary analysis that allows a
Risk vs Return representation leading to portfolio construction.
Risk Indicator
Hold
Buy
●
Expected Return: Our investment process is fundamentally driven and is a combination
of objective and proprietary analysis. Our aim is to construct a portfolio to have the
highest expected return for each unit of risk. This is a key factor that sets us apart from
our competitors.
●
Credit Quality: Our approach is focused on credit quality. We believe risk is asymmetric,
and our expected returns are underpinned by analysing spreads. It’s not just about
picking the right company bonds but avoiding the land mines.
●
Performance Analysis: At an individual bond level, we continually review our actual
returns versus expected returns to provide key insights into disparities and modify our
analysis where necessary.
Strong Buy
15
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
SANTANDER LATIN AMERICA FIXED INCOME TEAM
Alfredo Mordezki
Global Head of LatAm Fixed
Income, London
Global Team
●
Alfredo joined SAM in 2010 and is responsible of all of the
firm’s regional Latin American fixed income investments.
Before joining SAM he worked for BBVA in New York and
Madrid as head of Latin American Credit Trading. He has close
to 20 years’ financial experience.
●
He coordinates the local Latin America Fixed Income teams.
He graduated in Economics from Universidad de la República
(Uruguay) and holds a Msc. in International Economics from
same university and a Msc. in Economics and Finance from
Universitat Pompeu Fabra (Barcelona).
Tiago Rego
Portfolio Manager, London
●
Tiago joined Santander Asset Management in 2011 as
portfolio manager of the Santander Latin America Fixed
Income Luxembourg fund. He has close to 7 years’ experience
in financial markets.
●
Previously worked as prop trader for Santander (2 years) as
well as in Banco Espiritu Santo (4 years). He also worked as a
consultant for Deloitte (3 years).
●
He holds a degree in Management and Industrial Engineering
at Instituto Superior Técnico in Lisbon.
Local Team
María Aramoni
Credit Analyst /
Portfolio Manager,
Mexico
●
●
16
Maria joined SAM in March 2012 as
analyst/portfolio manager within the
LatAm Global Fixed Income team.
She previously worked for 2 years as
senior trader of the Money Market
and Currency Desk for Prudential Bank
México. Prior to that, she was an equity
research analyst for ING Bank, covering
the Food and Beverage sector, and
before that a credit analyst for Santander
GBM in Madrid covering Consumer and
Industrial sectors (European issuers).
She started her career as trader
of Fixed Income and currencies for
BBVA-Bancomer in Mexico. She has
14 years’ experience.
Maria graduated in Economics from
Universidad Iberoamericana in México
and has a Msc. in Finance from CUNEF
in Madrid, Spain.
Marcelo Peixoto
Credit Analyst /
Portfolio Manager,
Brazil
●
●
Marcelo joined SAM in 2013. Marcelo
has over 18 years’ professional experience, in Brazil and abroad, working
for financial institutions, rating agency
and multinational industries in a wide
range of areas such as: Internal Audit,
Credit Analysis, Asset Management
and Investments Analysis. Previously
he worked at Banco Standard de
Investimentos as Head of Credit. Prior
to that he was an associate director at
Standard and Poor´s in the financial
institutions and metals and mining
ratings group. He has also worked for
Alcan, Pirelli and Banco Citibank. He
started his career as an internal auditor
at Tribunal Regional Federal.
Marcelo graduated in Business Administration from Sao Paulo University and in
Accounting from Universidade Paulista.
He also holds a Master in Finance by
Fundacao Instituto de Administracao.
SANTANDER ASSET MANAGEMENT
Javier Vieiro
Credit Analyst /
Portfolio Manager,
Chile
●
Javier joined SAM in May 2012 as analyst/
portfolio manager within the LatAm
Global Fixed Income team covering the
Andean Region. Previously, he worked
for 4 years as credit risk analyst for
Standard & Poor’s International Ratings
LLC, Buenos Aires Office. Before that,
he worked as macro analyst for Banc
Sabadell in Spain, and as economic
analyst for the Economic Research Center
– Catholic University of Argentina. Has 7
years’ experience.
●
He holds a Bachelor’s Degree in Economics
from Catholic University of Argentina,
and a MSc. in Macroeconomic Policy
and Financial Markets from Barcelona
Graduate School of Economics (Univ.
Pompeu Fabra, Barcelona).
MARCH 2015
Global Team
Teresa Martínez
Quantitative Analyst,
Madrid
John Montgomery
Credit Analyst/Porfolio
Manager, London
●
●
John rejoined SAM this year having
spent an interim year in Santander’s
LatAm Corporate Finance division in
New York as part of their Executive
Training Programme. Prior to that he was
with the LatAm Fixed Income team in
SAM for 2 years as a Portfolio Manager.
He previously managed the Investment
Operations for Santander Private Banking
in Jersey, Channel Islands and has 12
years’ banking experience.
John graduated with an MA in European
Civilization from the University of Glasgow
and is certified as completing CFA level 1,
and CFA UK’s Investment Management
Certificate (IMC).
●
María Teresa joined SAM in August 2013
as analyst. Previously she worked as a
quant in Banco Santander’s Fixed Income
Quant Team (8 years). Before that, she
held several non-tenure positions in
the Universidad Autónoma de Madrid
(10 years).
●
She holds a PhD degree in Mathematics
by the Universidad Autónoma de Madrid.
Dipak Chouhan
Product Specialist,
London
●
Dipak moved from London in January
2013 to join SAM Madrid as Product
Specialist for the Latin America equity
and fixed income strategies. Prior to this
he spent over three years working for
Blackfriars Asset Management, an
Emerging Market boutique, where he
was responsible for client servicing and
business development. Dipak´s other
experience includes working as an
investment trust analyst at Schroders
and a six year spell as an American
and European equity product specialist
at Fidelity.
●
He graduated with a BA Honours in
Economics from Birmingham Polytechnic,
he is also a Member of the CFA Society
of the UK.
17
SANTANDER ASSET MANAGEMENT
LATIN AMERICAN
CORPORATE BOND FUND
Q1 2015 COMPANY MEETINGS
01. Abbot
Laboratories
22. Camposol
02. Alfa
24. Cementos Pacasmayo
03. Alicorp
04. Alsea
05. América Móvil
06. Atento
07. Aval
08. Banco ABC
Brasil
09. Banco BCI
10. Banco BMG
11. Banco de Chile
12. Banco
Santander Chile
13. BBVA
Continental
14. Bimbo
15. BioPappel
16. Bolsa Mexicana
de Valores
17. BR Properties
18. Brasil Foods
19. Braskem
20. BRmalls
21. BTG Pactual
23. Cementos Argos
25. Cementos Progreso
26. Cemex
44. Financiera
Independencia
65. Intergroup
88. Petrobras
45. Fitch
66. Irsa Cresud
89. Pinfra
67. Itau Unibanco
90. Queiroz Galvao
O&G
46. General Shopping
47. Gentera
48. Geopark
27. Cencosud
49. Gerdau
28. Cielo
50. Gol
29. CMPC
51. Grupo Cementos
Chihuahua
30. Cobre del Mayo
31. Cofide
32. Colombia
Telecomunicaciones
33. Constructora
Norberto Odebrecht
52. Grupo Financiero
Banorte
53. Grupo Herdez
54. Grupo Interacciones
34. Construtora Andrade
Gutierrez
55. Grupo Kuo
35. COSAN
57. Grupo Senda
Autotransporte
36. Credito Real
37. CSN
38. Davivienda
39. Exalmar
40. Falabella
41. Famsa
42. Ferreycorp
43. Fibra Uno
56. Grupo México
58. Grupo sura
59. Hypermarcas
60. ICA,
61. IDESA
62. Inretail
63. Intercement
64. Intercorp Financial
Services
CONTACT DETAILS:
Global Institutional Business Team
Mario Díaz:
+44 207 9140769
mario.diaz@santanderam.com
Eric van Maasdijk:
+44 207 9140895
eric.van.maasdijk@santanderam.com
Dipak Chouhan:
+44 207 9140716
dipak.chouhan@santanderam.com
Fernanda Kremer:
+44 207 9140945
fernanda.kremer@santanderam.com
18
SANTANDER ASSET MANAGEMENT
68. Javer
69. JBS
70. Kio Networks
71. Klabin
72. Lindley
73. Liverpool
74. Mabe
75. Marfrig
76. Masisa
77. Metalsa
78. Mexichem
79. Millicom
80. Minerva
81. Moody’s
91. S&P
92. Samarco
93. Santander
94. Schahin O&G
95. Scribe
96. Smiles
97. SMU
98. Suzano
99. Tanner
100. Televisa
101. TIM
102. Tupy
103. Unacem
82. OAS
104. Unifin
83. Odebrecht Oil
& Gas
105. USJ
106. Vale
84. Office Depot
Mexico
107. Vesta
85. Oi
109. Walmex
86. Organización
Soriana
87. Pacific rubiales
108. VTR Finance
For more information visit our new microsite http://golatam.santanderam.com
DISCLAIMER
THIS MATERIAL IS ONLY FOR INSTITUTIONAL CLIENTS AND SHOULD NOT BE RELIED UPON
BY ANY OTHER PERSONS. This report has been prepared by Santander Asset Management
Luxembourg SA. The information contained herein has been compiled from sources believed
to be reliable, but while all reasonable care has been taken to ensure that the information
contained herein is not untrue or misleading at the time of publication, we make no
representation that it is accurate or complete and it should not be relied upon as such. All
opinions and estimates included herein constitute our judgment as at the date of this report
and are subject to change. Santander Asset Management may change the recommendation
it has on a stock at any given time. From time to time, Santander Asset Management and/or
any of its officers or directors may have a position, or otherwise be interested in, transactions
in securities which are directly or indirectly the subject of this report. Santander Asset
Management has internal rules of conduct that contain, among other things, procedures
to prevent conflicts of interest with respect to recommendations, including, Chinese Walls,
and the possibility of establishing specific restrictions on research activity where appropriate.
Santander Asset Management may from time to time perform services for or solicit business
from any company mentioned in this report. Santander Asset Management does not accept
any liability whatsoever for any direct or consequential loss arising from any use of this report
or its contents. This report may not be reproduced, distributed or published by any recipient
for any purpose. Santander Asset Management is under the supervision of the CNMV.
Santander Asset Management advises that this presentation may contain representations
regarding forecasts and estimates. Said forecasts and estimates may include, among others,
remarks on the development of future business and future returns. Although these forecasts
and estimates represent our opinions regarding future business expectations, perhaps certain
risks, uncertainties and other relevant factors may lead the earnings to be materially different
from what is expected. Included among these factors are (1) the situation of the market,
macroeconomic factors, regulatory and government guidelines, (2) variations in domestic and
international stock exchanges, exchange rates and interest rates, (3) competitive pressure,
(4) technology developments, (5) changes in the financial position and credit standing of
our customers, debtors or counterparts. The risk factors and other fundamental factors that
we have stated could have an adverse effect on our business and on the performance and
earnings described and contained in our past reports, or in those that we shall present in the
future, including those filed with regulatory and supervisory entities.
© Santander Asset Management Luxembourg SA. All Rights Reserved.
Reporting period first quarter 2015
Distribution to institutional investors only
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