Latin America enjoying the confidence of institutional investors

Most institutional investors in North America and Europe have a favourable outlook on companies based in Latin America, according to a recent survey by investment bank JP Morgan.

It found that 70% of institutional investors would recommend that a Latin American company conduct an initial public offering in today’s capital markets, in the belief that the region has attractively valued companies with good growth potential. While respondents said that consumer goods and consumer services are the most attractive investment opportunities given rising prosperity and low unemployment, they cited government intervention and liquidity as the greatest challenges for Latin American companies. Over a third of those surveyed said that Latin American companies that do not adhere to international reporting standards should do so, in order to keep a fair market valuation.