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From Sagar Chakraverty, Opalesque Asia:

Ashmore Investment Management, a London-based investment manager dedicated to emerging markets with around $31.6bn, believes that Brazil, South America's biggest and most prosperous nation would be an important investment destination in coming years. This view is backed by Brazil's strong domestic demand, and it withstanding the global credit crisis. It is also a net creditor country to the IMF (see Ashmore positive on Brazil after strong performance in 2009).

Eduardo Camara Lopes, CEO of Ashmore Brasil sees better opportunities in the fixed income market with high rates, and chances of currency appreciation due to strong foreign direct investment and portfolio investments over the next 10 years. The country will see a change in domestic investors' outlook as they become more accepting towards lower interest rates than a decade ago. Companies are increasingly looking for source of financing through the stock exchange as credit opportunities are looking up, Lopes added.

Asmore's equity approach is long-only with at least 80% highly liquid stocks, and it mixes both top down and bottom up analysis. The Ashmore Brasil Equity Fund (ABEF) was up 137.42% for the period 2-Jan-09 to 2-Jan-10 against the MSCI Brazil index (104.74%).

Jerome Booth, head of research at A......................

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