There are five Latin American countries which are constituents of the MSCI Emerging Markets list. They vary considerably in terms of their performance and size.

The biggest, and the best performer over the last decade, is Brazil whose fortunes are heavily tied to commodity markets given it is a big exporter of metals, oil and crops. The total value of the MSCI Brazil index is comfortably more than the other four combined.

The second largest, although third in performance terms, is Mexico. Its proximity to the US has been a driver of growth over the last two decades or so.

Peru is toward the smaller end although it has belied its size to perform second best on a 10-year view. Given MSCI Peru consists of just three companies, however, its relevance in a wider sense is questionable.

Bottom of the pile in terms of both size and performance is Colombia which has actually recorded a negative return on a 10-year view, partly thanks to political instability. Interestingly the Colombian, Peruvian and Chilean markets have hatched a plan to combine to launch a single stock market, potentially as soon as the first half of 2025. In theory, greater scale could help drive an increase in foreign investment. 

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit www.temit.co.uk

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