LC Latam Capital AG

Latam Tigers Report July 2018

In July we saw the expected recovery for the region. Latam Tigers performed +6,2% (USD I-share class) outperforming clearly Global Emerging Markets. But underperforming MSCI Latam due to the Index’s higher exposure to Brasil. FX contribution was +3,3% in july. YTD the Funds is at -7,8%.

Worth to mention this month is the participation in the IPO of Mall Plaza. This chilean shopping mall operator is the Real Estate arm of Falabella. We received a preferred allocation which accounts now for 4,9% of the Fund’s assets. Revenues of Mall Plaza come 89% from Chile, 8% from Peru and 3% from Colombia. After the IPO Falabella still holds 60% of the Company and didn’t sell. Some private individuals sold part of their holding.

Country wise there were no big changes apart an increase in Chile due to the just mentioned IPO. Colombia’s exposure was slightly reduced due to a weak performance of Cemex Latam, Terpel and Banco Davivienda.

Brasil, Mexico and Argentina recovered well in july and we expect the focus to be rather on economic figures than on political noise. Peru posted 2 months in a row very positive growth numbers.

Please Find more details in attached monthly report.