When investing in Latin America, risks such as legal issues, ESG concerns or corruption scandals can keep equity valuations low. Our approach is to favour engagement while navigating these risks. For example, a Brazilian meat-packer is starting to put in place measures to limit damage resulting from legal issues. After meeting with its COO, our Latin America equity analyst concluded that the company has made significant governance improvements –as a result of recent scandals –including hiring the former head of food safety at the USDA, setting up a compliance and risk committee that reports directly to the board, and ceasing political donations. Our analyst travelled to São Paulo to conduct his operational due diligence and, having spent the day at the factory alongside employees, he developed a positive impression of quality standards and employee satisfaction.