BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI:
UK9OG5Q0CYUDFGRX4151)
All information is at 30 April
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^ |
-3.1 |
0.6 |
31.5 |
12.5 |
-2.2 |
79.8 |
Share price |
-3.3 |
1.3 |
29.4 |
5.7 |
-9.4 |
65.8 |
MSCI EM Latin
America |
-3.3 |
1.4 |
32.2 |
13.6 |
-3.5 |
96.5 |
US Dollars: |
|
|
|
|
|
|
Net asset value^ |
0.2 |
3.5 |
16.0 |
-13.8 |
-22.0 |
34.3 |
Share price |
0.1 |
4.2 |
14.2 |
-19.0 |
-27.7 |
23.8 |
MSCI EM Latin
America |
0.0 |
4.2 |
16.7 |
-13.0 |
-23.1 |
46.6 |
^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: |
485.40p |
Net asset value – cum
income: |
488.52p |
Share price: |
419.72p |
Total Assets#: |
£200.9m |
Discount (share price
to cum income NAV): |
14.1% |
Average discount* over
the month – cum income: |
13.6% |
Net gearing at month
end**: |
4.4% |
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 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 |
65.4 |
65.4 |
|
57.0 |
Mexico |
25.1 |
25.1 |
|
27.8 |
Argentina |
3.9 |
3.9 |
|
0.0 |
Peru |
3.8 |
3.9 |
|
2.7 |
Chile |
1.3 |
1.3 |
|
9.3 |
Colombia |
0.4 |
0.4 |
|
3.2 |
Net current assets
(inc.Fixed interest) |
0.1 |
0.0 |
|
0.0 |
|
----- |
----- |
|
----- |
Total |
100.0 |
100.0 |
|
100.0 |
|
----- |
----- |
|
----- |
Sector |
% of
Equity Portfolio * |
% of
Benchmark |
|
|
|
Financials |
30.2 |
30.4 |
Consumer Staples |
19.8 |
17.4 |
Materials |
14.4 |
14.8 |
Energy |
12.9 |
8.1 |
Industrials |
7.5 |
6.7 |
Telecommunication
Services |
5.2 |
6.2 |
Consumer
Discretionary |
4.3 |
6.0 |
Utilities |
3.7 |
6.3 |
Information
Technology |
1.1 |
1.6 |
Real Estate |
0.9 |
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 |
8.9 |
5.2 |
Banco Bradesco |
Brazil |
8.7 |
6.5 |
Itau Unibanco |
Brazil |
7.4 |
6.8 |
Vale |
Brazil |
5.5 |
4.6 |
AmBev |
Brazil |
3.9 |
4.6 |
Femsa |
Mexico |
3.9 |
2.8 |
BM&F Bovespa |
Brazil |
3.9 |
2.1 |
Telefonica Brasil |
Brazil |
3.0 |
1.1 |
Grupo Financiero
Banorte |
Mexico |
3.0 |
2.5 |
Kroton
Educacional |
Mexico |
2.9 |
1.1 |
Commenting on the markets, Will
Landers, representing the Investment Manager
noted;
For the month of April 2017, the
Company’s NAV declined by 3.1% with the share price declining by
3.3%. The Company’s benchmark, the MSCI EM Latin America Index,
declined by 3.3% (all performance figures are in sterling
terms).
Our off-benchmark allocation to Argentina was the top contributor for the
month as the market gained on positive macro headlines and
declining inflation. As a result, online retailer Mercadolibre and
integrated oil company YPF performed well, the latter also
benefitting from the government’s announcement to increase gas
prices in the Greater Buenos Aires
area by between 20% and 37%. Our overweight to Brazilian education
provider, Kroton Educacional, was the top contributor for the
period amid strong enrolment numbers from both their on-campus and
distance learning platforms. An underweight to Chile also added to the Company’s relative
performance as the broader market declined on the back of weak
activity levels and low business confidence. For similar reasons,
our overweight to Peru weighed on
performance. An underweight to America
Movil detracted as the company posted strong first quarter
results, while our overweight to Petrobras was the largest
detractor for the month as the stock suffered along with lower oil
prices.
During the month, positioning remained relatively unchanged,
however we did marginally increase our Brazilian exposure.
Specifically, we participated in the successful IPO of Brazilian
airline, Azul, while also increasing our Banco Bradesco
position.
We entered 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 were expected to 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.
This positive agenda has been put at risk by the recent accusations
and potential removal of President Michel
Temer. 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 (we are also
watching the State of Mexico's
election for governor in June carefully as a barometer for next
year's presidential elections). 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.
22 May 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.