BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI:
UK9OG5Q0CYUDFGRX4151)
All information is at 31 October
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^ |
-3.7 |
2.4 |
1.5 |
14.6 |
10.3 |
92.6 |
Share price |
-1.5 |
6.8 |
7.0 |
18.0 |
12.7 |
87.3 |
MSCI EM Latin
America |
-2.6 |
1.7 |
1.6 |
16.3 |
8.1 |
109.0 |
US Dollars: |
|
|
|
|
|
|
Net asset value^ |
-4.7 |
3.1 |
10.4 |
-4.9 |
-8.9 |
47.7 |
Share price |
-2.5 |
7.6 |
16.4 |
-2.1 |
-7.0 |
43.6 |
MSCI EM Latin
America |
-3.6 |
2.5 |
10.5 |
-3.4 |
-10.9 |
60.0 |
^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: |
517.24p |
Net asset value – cum
income: |
519.05p |
Share price: |
470.00p |
Total Assets#: |
£224.0m |
Discount (share price
to cum income NAV): |
9.5% |
Average discount* over
the month – cum income: |
11.4% |
Net gearing at month
end**: |
9.6% |
Gearing range (as a %
of net assets): |
0-25% |
Net yield##: |
2.5% |
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 performance fees and interest costs for the
year ended 31 December 2016.
Geographic Exposure
|
% of
Total Assets |
% of
Equity
Portfolio * |
|
MSCI
EM
Latin American Index |
|
|
|
|
|
Brazil |
64.4 |
64.5 |
|
57.8 |
Mexico |
23.7 |
23.7 |
|
25.3 |
Argentina |
5.4 |
5.3 |
|
0.0 |
Peru |
3.8 |
3.8 |
|
3.2 |
Chile |
1.9 |
1.9 |
|
10.5 |
Panama |
0.5 |
0.5 |
|
0.0 |
Colombia |
0.3 |
0.3 |
|
3.2 |
Net current assets
(inc. fixed interest) |
0.0 |
0.0 |
|
0.0 |
|
----- |
----- |
|
----- |
Total |
100.0 |
100.0 |
|
100.0 |
|
----- |
----- |
|
----- |
Sector |
% of
Equity Portfolio * |
% of
Benchmark |
|
|
|
Financials |
31.7 |
30.6 |
Consumer Staples |
15.5 |
16.3 |
Materials |
12.5 |
15.4 |
Consumer
Discretionary |
12.3 |
6.1 |
Energy |
9.3 |
8.8 |
Telecommunication
Services |
7.1 |
6.4 |
Industrials |
6.2 |
6.1 |
Utilities |
2.1 |
6.3 |
Real Estate |
1.4 |
1.5 |
Information
Technology |
1.1 |
1.3 |
Health Care |
0.8 |
1.2 |
|
----- |
----- |
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 |
|
|
|
|
Itau Unibanco |
Brazil |
7.4 |
6.5 |
Banco Bradesco |
Brazil |
7.0 |
6.5 |
Petrobras |
Brazil |
6.8 |
5.7 |
Vale |
Brazil |
5.3 |
4.7 |
America Movil |
Mexico |
5.2 |
4.5 |
AmBev |
Brazil |
5.1 |
4.7 |
Femsa |
Mexico |
3.4 |
2.7 |
B3 |
Brazil |
3.2 |
2.4 |
Grupo Financiero
Banorte |
Mexico |
2.9 |
2.3 |
Credicorp |
Peru |
2.8 |
2.2 |
Commenting on the markets,
Will Landers, representing the
Investment Manager noted;
For the month of October 2017, the
Company’s NAV fell by 3.7%* with the share price falling by 1.5%*.
The Company’s benchmark, the MSCI EM Latin America Index, fell by
2.6%* (all performance figures are in sterling terms with income
reinvested and are net of ongoing charges).
The portfolio’s off-benchmark allocation to Argentina continues to be a source of alpha
for the Company, with the market showing support for incremental
acceleration of President Macri’s reform agenda. Banking group,
Grupo Supervielle, as well as
utility, Pampa Energia were among the top performers. The
portfolio’s underweight to Colombia also benefitted the Company in
October as the market contracted from the Peso depreciating by
3.4%** against the US Dollar; overall, activity remains weak
despite a recovery in oil. Subsequently, our lack of positioning in
Bancolombia had a large positive impact to relative performance. On
the other hand, the portfolio’s overweight to the Brazilian
consumer (including positions in Magazine Luiza and Kroton) weighed
on performance, as the Real slid by -3.3%** and activity data
disappointed. Mexican insurer, Gentera was the largest individual
detractor as the company guided earnings downwards for 2018. The
broad portfolio underweight to Chile also hurt relative performance amid
improving market confidence in October.
During the month, broad positioning remained relatively
unchanged, however we exited our position in Gentera following a
negative third quarter call. On the other hand we increased
exposure to America Movil amid an
improving regulatory and competitive environment. We also shifted
some exposure in Brazil, topping
up positions in energy names, Petrobras and Ultrapar, while exiting
BRF after the surprise announcement of their CEO’s departure. We
ended the month being overweight Brazil and Peru while being underweight Chile and Colombia. We also maintain an off-benchmark
allocation to Argentina. At the
sector level, we are overweight the domestic consumer and energy,
while being underweight utilities and materials.
Into the fourth quarter of 2017, our positioning and outlook
remain relatively unchanged. Despite going through yet another
round of political headwinds the primary drivers for Brazilian
equities should remain the same: a) the continued easing cycle by
the Central Bank should help bring forward the needed economic
recovery (the Central Bank cut rates another 75 bps** in October,
bringing the SELIC (Sistema Especial de Liquidação e Custodia, the
Brazilian Central Bank interest rate) down to 7.50%; the market has
seen 675 basis points of easing so far during the current cycle,
resulting in the SELIC hitting its second lowest point in history);
and b) continued progress on the reform agenda, especially pension
reform (with a focus on minimum retirement age implementation),
which should help to bring stability to government accounts in the
medium term. Meanwhile, the recent round of NAFTA (North American
Free Trade Agreement) negotiations illustrated that the process
will be long and, and we maintain our cautious view on Mexican
growth, and therefore our underweight - uncertainties regarding
next year’s presidential cycle add to our conviction on such
positioning. We continue to underweight Chile due to rich valuations and lack of
free-float liquidity, and despite slower than expected progress on
the infrastructure front, we continue to favour Peru among its Andean neighbours. Argentina remains another top region for the
strategy as fundamentals persist, with October mid-term elections
providing support for a continuation of President Macri’s reform
agenda.
*Source: BlackRock as of 31 October
2017
**Source: JPM as of 31 October
2017
21 November 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.