Standard Life Investments (SLI) is eyeing Venezuela as the ideal country to grow its business, according to SLI bond manager Richard House, who made Venezuela the biggest credit risk in £106.2m Standard Life investments emerging market debt fund.
The decision by SLI came after Bank of America Merrill Lynch’s recent report stated that the government may bring in new policies that could improve the efficiency of resource allocation in Venezuela.
Go deeper with GlobalData
Additionally, Venezuelan debt makes up to 5.7% of the fund, as against the JP Morgan EMBI global diversified index of 3.4%.
Despite the tough socialist government policies in Venezuela in recent years, which led to more crimes and high inflation, House was quoted by The Financial Times as saying that the government is now beginning to put in place policies that could turn the economy around.
House said the introduction of a new foreign exchange system a few weeks ago implied a significant devaluation of Venezuela’s currency.
"This is good for fiscal accounts and also export revenues. It is positive for US-dollar denominated bonds, which have rallied significantly as a result," House added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
