MSV has just added another fund - MSV Fidelity Latin America Fund - to its range of unit-linked funds. Managed by Alex Duffy and Angel Ortiz, the fund invests principally in securities of Latin American companies using fundamental bottom-up analysis which includes visiting companies and analysing company financials. To evaluate financial performance the managers focus on companies with strong cash generation abilities and firms whose earning capabilities appear to be unrecognised by investors.

The fund managers take advantage of the research capabilities of Fidelity's Emerging Markets team, which combines both equity and fixed income research. The Latin America equity analysts support the mangers with fundamental stock research , while other members of the team provide quantitative analysis and research support on macroeconomic factors, government policies and commodity and currency prices.

The fund was launched by Fidelity in May 1994 and since then has generated exceptional returns as indicated in the table which displays the fund performance as at 30.11.09

The geographic breakdown of the fund is heavily biased towards Brazil which accounted for 65% of the fund assets on the same observation date.

Investment In Latin America funds was amongst the best-performing fund categories in 2009. Equity financial markets globally have continued along the path to recovery that started in March 2009. Emerging markets continued to show the strongest signs of recovery with YTD performance of 72.9% for the MSCI Emerging Markets Index. The best performer within the Emerging Markets sector was the MSCI Brazil Index with a positive 120.9% performance. Going forward some analysts prefer emerging markets such as Brazil where the domestic recovery is looking in better shape relative to elsewhere.

Amongst emerging markets, investors like Brazil because it is considered to be one of the most stable politically, has one of the biggest economies and has the broadest stock market in the region. Investors have been linking the Latin American boom to the growth of the Chinese economy in recent years. Chinese demand for raw materials - steel and various types of minerals - has been identified as a main driver. At the same time, some of the macro-economic policies of the last decade have blossomed too. More conservative fiscal policies and more realistic monetary policies by central banks have slowly helped the economies turn the corner.

Brazil is very competitive in many commodities. Higher prices for commodities from coffee to soybeans and iron ore to crude oil, have brought new found wealth to Brazil. Since the election of President Lula de Silva in 2003, Brazil has emerged as a major player in global trade. Brazil occupies half the South American continent and contains half of its population.

Brazil's arrival as a global economic power is linked to its vast mineral resources, particularly iron ore, which is highly prized by major steel makers in China, Europe, India, Korea, and Russia. Besides iron ore, Brazil is blessed with other valuable minerals such as, chrome ore, copper, manganese, diamonds, gem stones, gold, nickel, tin, bauxite, uranium, platinum, and zinc. About a third of Brazil's economy is linked to agriculture, and it ranks amongst the world's largest exporters of coffee, sugar, cattle, orange juice and soybeans. The rain forests of the Amazon River basin produce timber, rubber, and other forest products such as Brazilian nuts and pharmaceutical plants.

To a large extent Latin America funds tend to be Brazil funds because Brazilian stocks typically account for 60% to 70% of the fund assets with a large proportion of the remaining assets being invested in Mexico. This limited diversification calls for prudence when investors are considering what proportion of their portfolio to commit to such funds.

The availability of a Latin America Fund within the range of MSV unit-linked funds is intended to complement the other emerging markets funds, mainly Asian, that are already available. The fund is expected to be popular with investors seeking further diversification in the emerging market sector.

For more information on the MSV Fidelity Latin America Fund contact Middlesea Valletta Life on Freephone 8007 2220, your intermediary or call at any BOV Branch.

Middlesea Valletta Life Assurance Co. Ltd is authorised by the Malta Financial Services Authority to carry on long term business under the Insurance Business Act 1998.COM 200110 313