Latam Consumer Monthly:Impressions from recent visits with investors (February 2017)

With the USD losing strength in January, 67% of our covered stocks showedpositive returns (but only 26% outperformed their respective indices). Brazilianstocks continued to lead, with notable rallies in BTOW3 (+22% in USD), ARZZ3(+20%), NATU3 (+13%), ABEV (+10%) and PCAR4 (+9%); while Mexicanconsumer names remained volatile, with a rally in GRUMAB (+6%) and furtherdecline in LIVEPOLC1 (down 12%). In Brazil, notable underperformers wereBRFS (15% below IBOV) and MRFG3 (10% below), with BTOW3 and ARZZ3outperforming by 11% and 9% respectively. In January we downgraded ARZZ3to Sell and BRFS to Hold, and upgraded FMX to Buy.