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The index has fallen by more than 30 per cent over the last three months, leaving investors to question whether it can still be a viable investment option.

Although there have been concerns the region's performance in recent years was simply a product of the commodities boom, he insisted other areas of the economy had held up well.

"Latin American economies tend to have low levels of debt, which should mean they avoid much of the credit problems suffered by the developed world. At a time when the credit crunch is impacting financial businesses across the US and Europe, Latin American banks continue to post strong earnings growth, expanding loan books and stable asset quality.

He added that domestic growth in Latin America was being driven by the burgeoning middle class.

"These new middle classes are becoming economically active, buying their first home and spending money on new cars and white goods," he said. "Overall, Latin American stocks look attractive at current valuation levels, offering the potential for good returns."

In the investment trust's portfolio, Mr Landers currently maintains his overweight position in Brazil, with close to 75 per cent of assets being invested in the region.

Countries that Mr Landers is underweight include Mexico and Chile, mainly due to the former's proximity to the US and the latter's weakening economy.