Analia is the Head of Distribution for Israel, Iberia & Latin America and joined the firm in March 2020. Analia assists with the firm’s marketing and business development efforts in the Israeli, Iberian, Latin American, and US offshore markets. She has a background in Advisory and Investment Analysis having led the Advisory and Investment Analysis team at PAM Global Investors in London for several years and more recently the Research team at Puente Corredor de Bolsa in the Southern Cone. She also held sales roles at Commerzbank Spain, Man Investments in London, and EFG and BBVA banks in Uruguay. Analia was a Professor at the Universidad de Montevideo, lecturing on Asset Pricing and Financial Analysis, and holds a BA in Economics from Universidad de la República and a Master in Financial Analysis from Universidad Carlos III de Madrid.
What made you decide to go into the financial sector? Did you have any other vocations?
I studied Economics at university with a heavy bias toward econometrics and macroeconomics, but early on I developed a huge curiosity for financial markets. My first job was as an investment analyst just at the onset of the tech bubble and that led me to become passionate about portfolio construction and the importance of diversification. When I moved to London in 2005, I had a strong desire to work in advisory and blend research with practical portfolio advice for bankers.
Before deciding to study economics, I considered journalism. I would have loved to voice the concerns of people and be able to see life from a different angle and with a pan-global perspective.
How should investors orient their portfolios in this environment?
Many investors have spent most of their careers in a period of suppressed volatility and strong intervention by central banks, and relatively less of us have any recollection of a period of elevated interest rates and higher inflation. As in any environment, diversification is key, and in particular, making sure one has complementary sources of risk and alpha. At this stage in the cycle, it may not be wise to hold excessive spread risk and beta to the markets and investors would greatly benefit from looking at investments that provide decorrelated returns to risk assets. We are seeing a correlation between markets diminish and this is a fertile ground for active managers.
How is the relationship with your clients in times of market crisis? How do you manage emotions?
Colchester has a disciplined, time-tested investment process that our investors fully understand and embrace. This makes our life easier in times of market turmoil as investors know what to expect from us and the role we play in their portfolios. Of course, we still engage with them and address any concerns they may have but usually, we provide a safe haven within their portfolios, so it is easier to manage emotions.
Give us an example of a fund that you have held for a long time in your portfolios and why.
Our portfolios consist exclusively of sovereign bonds and currencies, and we do not allocate to other funds. However, one country’s bond market and currency we have held for a long time, over a decade now, has been Mexican government bonds and the Mexican peso. Our investment process, based on a real yield analysis for bonds and real exchange rates for currencies, has identified value in Mexican government bonds and its currency, relative to other global bond and currency markets. Furthermore, our balance sheet analysis and ESG research on every country we invest in, has highlighted several strengths of Mexico’s balance sheet, including low debt to GDP, typically primary balance surpluses, as well as healthy FX reserve levels. Taken altogether, Mexican assets have been undervalued, yet with a strong fundamental backdrop, offering attractive relative value.
What differences do you observe in the way new generations invest?
New generations place increasing emphasis on sustainability and responsible investment. Furthermore, their interaction through online financial platforms and technological solutions is greater.
If you had to define yourself with 3 words, what would it be and why?
Hard-working, driven, and filled with gratitude. I have a family and a job I love, and I get to work in multiple countries with different needs and challenges.
What are your hobbies?
Running and playing the saxophone.
The information provided hereunder is not intended to be specific to the requirements of any person, and does not substitute a receipt of advice taking into account the information and special needs of any person. This article should not be relied on as investment advice. Colchester Global Investors Limited is regulated by the UK Financial Conduct Authority, and only deals with professional clients. Please refer to our website, https://www.colchesterglobal.com for more information and disclaimers.