BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI:
UK9OG5Q0CYUDFGRX4151)
All information is at 31 March
2017 and unaudited.
Performance at month end with net income
reinvested
|
One
month
% |
Three
months
% |
One
year
% |
Three
years
% |
Five
years
% |
^^Since
31.03.06
% |
Sterling: |
|
|
|
|
|
|
Net asset value^ |
0.5 |
12.5 |
42.1 |
18.3 |
-5.6 |
85.6 |
Share price |
0.3 |
12.1 |
41.0 |
15.9 |
-12.8 |
71.5 |
MSCI EM Latin
America |
0.1 |
10.8 |
42.1 |
19.2 |
-5.4 |
103.3 |
US Dollars: |
|
|
|
|
|
|
Net asset value^ |
1.0 |
13.9 |
23.5 |
-11.3 |
-26.0 |
34.0 |
Share price |
0.8 |
13.4 |
22.6 |
-13.1 |
-31.7 |
23.7 |
MSCI EM Latin
America |
0.6 |
12.1 |
23.6 |
-10.6 |
-26.0 |
46.5 |
^cum income
^^Date which BlackRock took over the investment management of
the Company.
Sources: BlackRock, Standard & Poor’s Micropal
At month
end |
|
Net asset value –
capital only: |
503.30p |
Net asset value – cum
income: |
504.22p |
Share price: |
434.00p |
Total Assets#: |
£204.3m |
Discount (share price
to cum income NAV): |
13.9% |
Average discount* over
the month – cum income: |
14.7% |
Net gearing at month
end**: |
4.3% |
Gearing range (as a %
of net assets): |
0-25% |
Net yield##: |
2.8% |
Ordinary shares in
issue***: |
39,369,620 |
Ongoing
charges****: |
1.2% |
#Total assets include current year revenue.
## calculated using total dividends declared in the last 12
months as at the date of this announcement as a percentage of month
end share price.
*The discount is calculated using the cum income NAV (expressed
in sterling terms).
**Net cash/net gearing is calculated using debt at par, less
cash and cash equivalents and fixed interest investments as a
percentage of net assets.
***Excluding 2,071,662 shares held in treasury.
**** Calculated as a percentage of average net assets and using
expenses, excluding finance costs and taxation, for the year ended
31 December 2016.
Geographic Exposure
|
% of
Total Assets |
% of
Equity Portfolio * |
|
MSCI
EM Latin American Index |
|
|
|
|
|
Brazil |
66.3 |
65.4 |
|
57.0 |
Mexico |
25.4 |
25.1 |
|
27.6 |
Peru |
4.1 |
4.0 |
|
2.8 |
Argentina |
3.8 |
3.8 |
|
0.0 |
Chile |
1.3 |
1.3 |
|
9.4 |
Colombia |
0.4 |
0.4 |
|
3.2 |
Net current
liabilities (inc.Fixed interest) |
-1.3 |
0.0 |
|
0.0 |
|
----- |
----- |
|
----- |
Total |
100.0 |
100.0 |
|
100.0 |
|
----- |
----- |
|
----- |
Sector |
% of
Equity Portfolio * |
% of
Benchmark |
|
|
|
Financials |
30.0 |
30.2 |
Consumer Staples |
19.6 |
17.1 |
Materials |
15.1 |
15.2 |
Energy |
13.4 |
8.4 |
Industrials |
6.8 |
6.7 |
Telecommunication
Services |
5.0 |
5.9 |
Utilities |
4.1 |
6.5 |
Consumer
Discretionary |
3.9 |
6.0 |
Information
Technology |
1.1 |
1.5 |
Real Estate |
1.0 |
1.5 |
Health Care |
0.0 |
1.0 |
|
----- |
----- |
Total |
100.0 |
100.0 |
|
----- |
----- |
*excluding net current liabilities & fixed
interest
Ten Largest Equity Investments (in percentage order)
Company |
Country of
Risk |
%
of
Equity Portfolio |
%
of
Benchmark |
|
|
|
|
Petrobras |
Brazil |
9.4 |
5.5 |
Banco Bradesco |
Brazil |
8.5 |
6.3 |
Itau Unibanco |
Brazil |
7.3 |
6.6 |
Vale |
Brazil |
6.1 |
5.0 |
AmBev |
Brazil |
4.0 |
4.6 |
BM&F Bovespa |
Brazil |
4.0 |
2.1 |
Femsa |
Mexico |
3.9 |
2.8 |
Telefonica Brasil |
Brazil |
3.0 |
1.1 |
Grupo Financiero
Banorte |
Mexico |
3.0 |
2.4 |
Grupo Mexico |
Mexico |
2.7 |
1.9 |
Commenting on the markets, Will
Landers, representing the Investment Manager
noted;
Performance
For the month of March 2017, the
Company’s NAV rose by 0.5% and the share price rose by 0.3%, whilst
the Company’s benchmark, the MSCI EM Latin America Index, rose by
0.1% (all performance figures are in sterling terms).
Stock selection in Brazil was
the largest contributor to returns. An overweight to
Argentina also contributed
positively to returns. Argentina has rallied this year following the
lifting of capital restrictions, the growing potential for index
inclusion and improving economic data. An overweight to Arca
was the largest individual contributor to performance. The
stock is seeing strong growth in Mexico and better margins in South America overall. An underweight to
Chile weighed on returns as the
country outperformed due to better sentiment with respect to the
outcome of their presidential elections. An overweight to
Brazil detracted from returns as
the country underperformed due to a fiscal shortfall and risks to
social security reform approvals. An underweight to
America Movil weighed on returns as
the stock performed well given improved sentiment towards Mexican
equities.
Transactions/Gearing
During the month we exited Cielo due to concerns regarding short
term results and medium term regulatory pressures. We added
to Iguatemi, which stands to benefit from lower interest rates and
improving liquidity in the name. Finally, we added to
BM&F Bovespa while reducing exposure to BRF.
Net gearing was approximately 4.3% at the end of
March.
Positioning
We enter the second quarter of the year maintaining overweight
positions in Brazil, Peru and off-benchmark Argentina, while maintaining underweight
positions in Chile, Colombia and Mexico. Short-term drivers
for Brazilian equities should be: a) the continued aggressive
easing cycle by the Central Bank which should help to bring forward
the needed economic recovery; and b) progress on the reform agenda,
especially pension reform, which should help to bring stability to
government accounts in the medium term. Meanwhile, despite a
more conciliatory tone from the US government on the trade front,
we maintain our cautious view on Mexican growth, and therefore our
underweight. Despite slower than expected progress on the
infrastructure front, we continue to favour Peru among its Andean neighbours, and see
improving economic activity in Argentina as a positive for that country’s
stock market.
19 April 2017
ENDS
Latest information is available by typing
www.blackrock.co.uk/brla on the internet, "BLRKINDEX" on Reuters,
"BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).
Neither the contents of the Manager’s website nor the contents of
any website accessible from hyperlinks on the Manager’s website (or
any other website) is incorporated into, or forms part of, this
announcement.