Eurekahedge - Other Products and Services
Fund Of Private Equity Fund Database Free Trial

Hedge Fund News

EH Report

Capital Raising Suite

‘Mizuho-Eurekahedge Index’ goes live

Asian Hedge Fund Awards

Industry Events Calendar

Fund Launches and Closures


Eurekahedge Hedge Fund Indices

Hedge Fund Monthly
MILA: A New Phase of Integration in Latin America
Alternative Latin Investor
Mar 2011

Strong growth in Latin America is catching the eye of many business and investors. But when it comes to decision time, Brazil is often the only financial market big and sophisticated enough to make a trade worthwhile. However, three of Latin America's smaller but most dynamic economies plan to combine forces to offer a viable alternative and open up their markets to local and international investors.

Chile, Colombia and Peru have already begun the first phase of integration in a process that will eventually lead to direct trading on a common bourse. The Integrated Latin American Market, known under its Spanish acronym MILA, will unite 563 companies and have a total market capitalisation of US$647 billion, according to Bloomberg data. That would make it second only to Brazil's Bovespa in the region, relegating Mexico into third place. Trade volume is also set to be among the highest in the region, with initial estimates pointing to a daily sum of US$300 million.

The three Andean states make natural companions: they share a Pacific coastline, an economic model based on openness to trade, and democratic values. But individually, each market is too small to attract large sums of investment compared to the continent's economic and financial powerhouses.

By pooling liquidity and deepening capital markets, each of the countries should be better placed to compete for foreign investment with the region's traditional powerhouses, with Mexico the most likely to lose market share, according to Victor Hugo Rodriguez, CEO of LatAm Alternatives. This scale advantage applies especially to the two smaller markets in the MILA group, Peru and Colombia, which hope to gain more weight in regional indices.

As well as the obvious benefits of lower transaction costs and improved cross-border trade efficiencies, the combined market will allow investors to diversify their holdings. Where now most investors in Peru are concentrated in the booming mining sector, a portfolio in MILA could be expanded to include Chilean retailers and Colombian construction firms. Each individual market, especially Peru and Colombia, has traditionally been too small or risky for most investors, particularly foreign, to look beyond the countries' dominant industries.

Please Login to read the rest of the article

Not a subscriber? Click here to register for the FREE news articles

For further information on Eurekahedge online products, please contact our sales staff for a FREE demonstration:

Eurekahedge Research Data
Sales Line: +65 6212 0925
US: +1 646 710 4898 / +1 646 710 4899

If you have any comments about or contributions to make to this newsletter, please email


Industry News
  The Eurekahedge Report - April 2014  
  Asset Flows Update for the Month of March 2014  
  Hedge Fund Performance Commentary for the Month of March 2014  
  2014 Key Trends in European Hedge Funds  
  The Billion Dollar Interview with David Harding, Chairman and Chief Executive Officer at Winton Capital Management  
  Interview with Vincent Lam, Chief Investment Officer at VL Asset Management  
  A Supportive Environment for Vietnamís Stock Markets  
  Derivative Regulations for Swiss Pension Funds  
  Russia: A Vast Opportunity for Islamic Finance  
Eurekahedge Hedge Fund Manager Travel Plans

Copyright © 2014 Eurekahedge Pte Ltd.
Use of this site is subject to our terms and conditions of use.