Here's Why You Should Start Investing in Latin America Now
Latin America is becoming a favorable spot for investors looking to expand their portfolio or grow their businesses. Among well-established companies pouring money into the region include trade company Terra Funds in real estate and AT&T in telecoms, which announced their ventures in separate instances over the weekend.
Real Estate Potential
Tierra Funds became the first exchange-traded fund (ETF) company to solely concentrate on building real estate investment trusts (REITS) in Latin America. It invested $2 million worth of assets in December and developed the product called Tierra XP Latin America Real Estate (LARE), which allows individuals or institutions to purchase and double their dividends against 150 listed real estate equities.
James Anderson, who heads the Pennsylvania-based ETF, is convinced that the Latin American region is poised for growth and gain, and predicted that the improvements could happen in the next five to 10 years. Anderson isn't new to the Latin American real estate landscape, as he has been dealing with the local industry since the 90s.
What is LARE?
Investments for LARE are tapped into "balanced and diversified" Brazil, Chile and Mexico real estate markets and are tracked by iShares MSCI, which issues the ETF bonds globally. Anderson said that unlike most REITS, LARE is considered as a "safe-haven" asset and it's less volatile than other products and equities. For emerging markets, the LARE is a passive product that grows in the long-term and can complement other investments in stocks or bonds.
For those keen to invest, the finance man has some advice. "Investors should always consult with their financial advisor prior to making investment decisions as well as read an investment's literature," Anderson said.
AT&T's $10 Billion Investment
Meanwhile, AT&T announced in a press release that it is launching its platform and telecom solutions in targeted sites in Mexico. The company is set to roll out 6,000 kilometers of fiber operations to boost wireless connectivity in the country, with the goal of servicing 100 million businesses and consumers by 2018.
"By bringing the entire scope of the AT&T capabilities to bear, we're helping our customers turn trade-offs of the past into combination plays of the future. Our software-centric network lets us create and deploy integrated solutions faster, infusing agility into our customers' own operations. For customers, that means a competitive advantage," said AT&T's chief marketing officer Steve McGaw.
The news comes as Facebook, Google and Microsoft set up shop in Bogota, Colombia in the last few years, sparking a tech boom in the Latin American region.
The video below provides more information about Mexico's tech developments:
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