After an impressive first-half run, Chilean beverage company CCU’s (CCU, Financial) path back from the dislocations of Covid-19 grew bumpy. CCU has production facilities and distribution centers across South America, though it derives most of its revenue and earn-ings domestically. Weaker copper prices and mounting political uncertainty during the quarter pushed the Chilean peso to a one-year low and the Chilean equity market down nearly 8%.10 Chile, like much of Latin American, has been dealing with mounting inflationary pressures; after quarter-end, the central bank hiked its key rate by 125 basis points to 2.75%.
From First Eagle Investment (Trades, Portfolio) Global Income Builder Fund's third-quarter 2021 commentary.
