HANetf and Amerant Investments have partnered to launch Amerant Latin American Debt UCITS ETF (RNTA).
RNTA invests in an actively managed portfolio of Latin American corporate bonds, with the aim of achieving steady income for investors, while providing a unique opportunity to access the rapidly growing economies of Latin America.
The firm writes that Latin America has resource-rich economies with fast-growing populations. “Although the countries are developing markets, they have many multi-national, export-oriented, corporations – particularly in natural resources and basic materials.
“Emerging markets bonds offer higher yields than bonds from US or developed market issuers, even though many of these corporations are large, multi-nationals and/or export-oriented firms.”
The firm writes that spreads for Latin American bonds tend to be elevated, but active management can help avoid defaults in the region.
RNTA focuses on bonds issued in hard currency US dollars, minimising currency risk, the firm says.
The ETF also predominantly selects bonds from larger and stabler Latin American countries such as Brazil, Chile, Mexico, Colombia, and Paraguay.
The ETF is actively managed by the CIO of Amerant Investments, Baylor Lancaster-Samuel. The firm writes that Lancaster-Samuel is a recognised expert in her field and a frequent contributor to Bloomberg news and television. She has two decades of experience, primarily in fixed income investing, in a variety of institutional, family office, and analytical roles.
